Bills

Public Finance and Audit (Treasurer's Instructions) Amendment Bill

Second Reading

The Hon. G.E. GAGO (Minister for Employment, Higher Education and Skills, Minister for Science and Information Economy, Minister for the Status of Women, Minister for Business Services and Consumers) (18:01): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation inserted in Hansard without my reading it.

Leave granted.

The Public Finance and Audit Act 1987 provides the framework for the financial management of public finances. The ability for the Treasurer to issue instructions binding public authorities is central to providing a framework that advances accountability, integrity and transparency for the benefit of the State. This Bill clarifies matters relating to the application and scope of Treasurer's Instructions and makes minor amendments of a statute law revision nature

The main purpose of the Bill is to make it clear that a general provision in an Act establishing a public authority, such as a power to enter contracts (or even a more specific provision such as a requirement to have a particular body approve a contract), will not override a requirement of Treasurer's instructions applying to the public authority, for example, requiring an approval of the Treasurer or delegate to be obtained for entry into a contract. While these matters can be clarified in relevant charters and directions for particular bodies, the amendments are designed to improve general understanding about the relationship between Treasurer's Instructions and provisions of an Act providing a public authority with functions and powers.

The opportunity is also being taken to clarify the scope of Treasurer's Instructions so that it is clear that they may regulate any matter related to the receipt, expenditure or investment of money, the acquisition or disposal of property, or the incurring of liabilities, by the Treasurer and public authorities.

I commend the Bill to Members.

Explanation of Clauses

Part 1—Preliminary

1—Short title

2—Amendment provisions

These clauses are formal.

Part 2—Amendment of Public Finance and Audit Act 1987

3—Amendment of section 4—Interpretation

This amendment adds a definition of property to make it clear that it includes any type of property including contingent rights.

4—Amendment of section 5—Receipt of public money

This amendment is consequential on including both real and personal property within the definition of property.

5—Amendment of section 41—Treasurer's instructions

The addition of paragraph (f) to subsection (1) is designed to ensure that Treasurer's Instructions may regulate any matter related to the receipt, expenditure or investment of money, the acquisition or disposal of property, or the incurring of liabilities, by the Treasurer and public authorities.

New subsections (4) and (5) clarifies that Treasurer's instructions may refer to standards etc published by the Australian Accounting Standards Board or Standards Australia.

Subsections (6) and (7) are designed to ensure that a public authority's powers and functions are read subject to Treasurer's instructions. It is only if it is not possible to comply with both the Instructions and the authority's Act, that the Instructions give way.

Schedule 1—Statute law revision amendment of Public Finance and Audit Act 1987

The Schedule contains further amendments of the Act of a statute law revision nature.

Debate adjourned on motion of Hon. D.W. Ridgway.