Bills

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

Second Reading

Adjourned debate on second reading.

(Continued from 18 March 2015.)

The Hon. T.T. NGO (15:23): I rise to support this bill. This bill addresses the protocols in the administration and reporting on public finances, which rest with the Treasurer. The Public Finance and Audit Act 1987 is the main statute which provides the mechanisms to fulfil this responsibility. It provides the framework for the financial management of public finances, including the ability for the Treasurer to issue instructions.

My understanding is that the definition of a 'public authority' as provided for in the act is wide enough to apply to most forms of entities that the government may choose to act through. However, the application of some aspects of the act has been questioned where the public authority is also subject to other governing legislation; for example, the Public Corporations Act 1993.

This came to particular attention following WorkCover becoming a public authority. At this time a discussion took place around the application of the Treasurer's Instructions to WorkCover and resulted in the Solicitor-General providing legal advice to the then Minister for Industrial Relations that indicated the instructions did apply.

WorkCover received conflicting advice from a private law firm and the Solicitor-General advised that 'it would be prudent to pursue legislative amendments putting the position beyond doubt' that the act applies to all public authorities. The Solicitor-General also indicated some uncertainty as to whether certain Treasurer's Instructions could be characterised as 'procedures to be followed in the course of financial administration' and suggested that the matter be clarified. Given the role of Treasurer's Instructions in providing a framework for financial management, accountability, integrity and transparency, it is important that any doubt over its scope is removed. This is exactly what this bill addresses.

Some may argue that the requirement to comply with Treasurer's Instructions restrains their management prerogative. It is important, however, for the overall supervision of the government's finances that the Treasurer has the ability to issue instructions to all agencies. Importantly, this does not prevent a public authority from seeking a variation or exemption from Treasurer's Instructions in appropriate circumstances. I commend this bill to the house.

Debate adjourned on motion of Hon. G.A. Kandelaars.