Bills

Statutes Amendment (Ombudsman and Auditor-General) (Terms of Office) Bill

Introduction and First Reading

The Hon. K.J. MAHER (Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector) (15:18): Obtained leave and introduced a bill for an act to amend the Ombudsman Act 1972 and the Public Finance and Audit Act 1987. Read a first time.

Second Reading

The Hon. K.J. MAHER (Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector) (15:19): I move:

That this bill be now read a second time.

I am pleased today to introduce the Statutes Amendment (Ombudsman and Auditor-General) (Terms of Office) Bill 2023. This bill makes some modest amendments to the Ombudsman Act 1972 and the Public Finance and Audit Act 1987 to update the terms and conditions of appointment for the Ombudsman and the Auditor-General. This follows the decision of the Ombudsman, Mr Wayne Lines, to resign from his role at the end of this year, and the Auditor-General, Mr Andrew Richardson, approaching retirement age.

Mr Lines was appointed as the Ombudsman by the then Governor in Executive Council following a recommendation by resolution of both houses of parliament on 18 December 2014. Having served as Ombudsman for over nine years, Mr Lines has had an impressive career in the Public Service and the legal sector. Before his appointment as the state Ombudsman, Mr Lines served as the South Australian WorkCover Ombudsman from 2008 to 2014. Prior to that, Mr Lines worked in the legal sector, including 16 years in the Crown Solicitor's Office.

As South Australia's sixth Ombudsman, Mr Lines has played a vital role in holding governments and public servants to account. He has always carried out his work with professionalism and has considered matters as an ombudsman must: impartially and in an even-handed manner. On behalf of the government and the parliament, I thank Mr Lines for his longstanding service to the South Australian community and I wish him and his family all the very best for the future.

The Governor in Executive Council appointed Mr Andrew Richardson as the Auditor-General in South Australia from 1 June 2015. Mr Richardson continues in the role but is approaching the age of 65, at which time the office will become vacant. Members would be well aware of the important work of the Auditor-General in auditing the financial reports and operations of government departments and local governments around the state.

The annual Auditor-General's Report is an important process in identifying issues and maintaining high standards of accountability across government. Similarly, the opportunity for members in each house to scrutinise ministers on the contents of those reports is an important annual convention. On behalf of members of the government and the parliament more generally, I would like to thank Mr Richardson for his important service to this state and wish him well when, in the near future, he reaches the retirement age of 65.

I will now turn to the substance of the bill before us. The Ombudsman Act currently has no set term of appointment for the Ombudsman. Instead, it provides that the Ombudsman's appointment expires on the day on which the incumbent attains the age of 65 years. Following the announcement of his resignation, Mr Lines wrote to me and recommended that section 10 of the Ombudsman Act be amended to reduce the term of appointment for the Ombudsman to seven years, with eligibility to be reappointed to a maximum term totalling 10 years.

The Ombudsman noted that this provision means that a person over the age of 65 could not currently be considered for the position, whereas a person appointed at the age of 40 could hold tenure for 25 years. He also noted that a seven-year term of appointment with a possible further three years is consistent with the term of office for other statutory officers.

Unlike South Australia, ombudsmen in all other Australian jurisdictions are appointed for a set term and there are no age restrictions on the tenure of their office. In the commonwealth, New South Wales and the Australian Capital Territory, ombudsmen are appointed for a set term not exceeding seven years and are eligible for reappointment. In Queensland, Western Australia, Tasmania and the Northern Territory, ombudsmen are appointed for a set term not exceeding five years and are eligible for reappointment to a maximum term of up to 10 years. In Victoria, the ombudsman is appointed for a set term of 10 years but is not eligible for reappointment.

In anticipation of the forthcoming vacancy in the office of the Ombudsman, and as recommended by the incumbent Ombudsman, this bill amends the Ombudsman Act to:

provide that the Ombudsman is to be appointed for a set term of a period not exceeding seven years, but is eligible for reappointment provided that the total term does not exceed 10 years; and

remove the age restriction which provides that the Ombudsman's term of office expires on the day on which they attain the age of 65 years.

During the course of preparing amendments to the Ombudsman Act, it was identified that similar provisions apply to the appointment of the Auditor-General, which are also out of step with other jurisdictions. The Public Finance and Audit Act currently has no set term for the appointment of the Auditor-General. It provides, similarly to the Ombudsman, that the Auditor-General becomes vacant if the Auditor-General attains the age of 65 years.

Similar to the issues raised with the Ombudsman Act, a person over the age of 65 cannot be considered for the position of Auditor-General when it becomes vacant and similarly, for example, a person appointed at the age of 40 could hold tenure for 25 years.

Unlike South Australia, again, Auditors-General in other Australian jurisdictions are appointed for a term and there are no age restrictions on the tenure of their offices. In Queensland and in the Australian Capital Territory, the Auditor-General is appointed for a fixed term of seven years and is not eligible for reappointment. In Victoria, the Auditor-General is also appointed for a fixed term of seven years, however is eligible for reappointment. In New South Wales, the Auditor-General is appointed for a fixed term of eight years and is not eligible for reappointment. In Western Australia and Tasmania, the Auditor-General is appointed for a fixed 10-year term and cannot be reappointed for another term.

Mr Richardson, as the current Auditor-General, is due to soon reach the maximum statutory age limit permitted for a person to hold office as the Auditor-General, being 65 years of age, and, as I have said, upon him attaining 65 years of age the office of the Auditor-General becomes vacant. Accordingly, the bill amends the Public Finance and Audit Act to:

provide that the Auditor-General is to be appointed for a set term for a period not exceeding seven years, but is eligible for reappointment, provided that the total term does not exceed 10 years (including any period of acting in the office of Auditor-General); and

remove the age restriction which provides that the Auditor-General's office expires on the day on which they attain the age of 65 years.

The above approaches for the Ombudsman and the Auditor-General are consistent with the terms and conditions of appointment for the Independent Commissioner Against Corruption, the Director of the Office for Public Integrity and the Judicial Conduct Commissioner, each of whom are appointed for a set term not exceeding seven years and are eligible to be reappointed, provided their tenure does not exceed 10 years in total.

It is intended that these amendments will apply to the appointment of the next Ombudsman and the next Auditor-General. Given this, it is important that these amendments commence prior to those appointments. In the event of a vacancy in the office of the Ombudsman, the matter of inquiring into and reporting on a suitable person for appointment is referred to the Statutory Officers Committee of parliament. The government looks forward to working with the Statutory Officers Committee to undertake this process, as is required by legislation.

In contrast, the Auditor-General is appointed by the Governor in Executive Council. The government is currently undertaking a recruitment process, which will be considered in due course. I commend the bill to the chamber and seek leave to insert the explanation of clauses in Hansard without my reading it.

Leave granted.

Explanation of Clauses

Part 1—Preliminary

1—Short title

This clause is formal.

Part 2—Amendment of Ombudsman Act 1972

2—Amendment of section 10—Term of office of the Ombudsman etc

Currently, the Ombudsman holds office for a term expiring on the day on which they attain the age of 65 years. The amendment proposes to amend this to provide that the term of appointment is for a period not exceeding 7 years. Proposed new subsection (1a) provides that a person appointed to be Ombudsman is, at the end of a term of appointment, eligible for reappointment but cannot hold office for terms (including any term as Acting Ombudsman) that exceed 10 years in total.

The other amendment is consequential.

Part 3—Amendment of Public Finance and Audit Act 1987

3—Amendment of section 24—Appointment of Auditor-General

This amendment proposes to amend section 24 to provide that the term of appointment of the Auditor-General is for a period not exceeding 7 years. Proposed new subsection (2a) provides that a person appointed to be Auditor-General is, at the end of a term of appointment, eligible for reappointment but cannot hold office for terms (including any period acting as Auditor-General) that exceed 10 years in total.

4—Amendment of section 27—Vacation of office of Auditor-General

This amendment is consequential.

Schedule 1—Transitional provisions

1—Transitional provisions

Transitional provision are set out for the purposes of the measure.

Debate adjourned on motion of Hon. L.A. Henderson.