Bills

Statutes Amendment (Public Sector Audit) Bill

Introduction and First Reading

The Hon. J.A. DARLEY (17:34): Obtained leave and introduced a bill for an act to amend the Public Finance and Audit Act 1987 and the Public Sector Act 2009. Read a first time.

Second Reading

The Hon. J.A. DARLEY (17:35): I move:

That this bill be now read a second time.

The purpose of this bill is twofold, but both aim to reduce waste by increasing the efficiency of the Public Service and ensure that staffing and resources are placed where they are most needed.

The first part of the bill makes amendments to the Public Finance and Audit Act and removes restrictions on what the Auditor-General is able to investigate. Currently, the Auditor-General is restricted in what they are able to investigate. The bill removes restrictions and enables the Auditor-General to examine matters in connection with an audit if they are of the opinion that an examination is warranted or if it is in the public interest.

The second part of the bill inserts a new section into the Public Sector Act which requires the chief executive of each department to undertake a review into the functions of the department, the resources needed to undertake these functions and any other budgetary savings measures that may be made. This report is to be completed within six months, provided to the minister and tabled before parliament. It is important that department executives know and understand what functions their department has and investigates to see whether they are undertaking these functions in the most efficient manner.

All activities that departments currently undertake need to be identified and, if it is deemed that there are operations that are no longer needed, they should be discontinued, with the staff deployed to other areas where a need has been identified. I have previously stated that I do not agree with the application of efficiency dividends across the board in public sector agencies. Whilst savings may look good on paper, arbitrary cuts may see resources taken away from sectors that are in need, whilst leaving behind resources that are surplus to requirements in another area.

I have long held that departmental heads should examine each and every activity currently undertaken by the agency and determine what the progress of the activity is. The reason for the activity, whether it be as a result of legislation or some other reason, should be identified and a determination should be made as to whether the activity is still required. If the activity is still relevant, a review should be undertaken to ensure that it is being performed in the most efficient manner and in the most appropriate location. If the activity is no longer required, it should be discontinued.

Undertaking such an operational audit will enable rebalancing of the public sector so that resources are placed in areas to match government priorities. Importantly, an operational audit will identify and reduce unnecessary red tape, which is integral with trying to attract growth to the state. This operational audit is an election promise I made and I am confident that it will streamline the Public Service.

Debate adjourned on motion of Hon. T.J. Stephens.