John Watson (Tasmania, Liberal Party) Share this | Link to this | Hansard source

On behalf of the Joint Committee of Public Accounts and Audit, I present the 408th report of the committee, Annual report 2005-06, together with executive minutes to various reports of the committee. I seek leave to move a motion in relation to the report and in so doing I wish to acknowledge the leadership of the chair of the joint committee of public accounts, Mr Tony Smith, from Victoria.

Leave granted.

I move:

That the Senate take note of the report

I seek leave to incorporate a tabling statement in Hansard. I wish to acknowledge that in the tabling speech I express on behalf of the committee the appreciation of the high quality of support that the Auditor-General, Mr Ian McPhee, gives to the committee’s inquiries into audits conducted by the Australian National Audit Office.

Leave granted.

The statement read as follows—

I am pleased to present the annual report of the Joint Committee of Public Accounts and Audit. The annual report is an important accountability mechanism by which Parliament and, through it the public, can conveniently assess the Committee’s performance.

The duties of the JCPAA are described in the Public Accounts and Audit Committee Act. In general terms, the duties are to:

• examine the financial affairs of authorities of the Commonwealth, and examine all reports of the Auditor-General;
• consider the operations and resources of the Audit Office;
• approve or reject the Prime Minister’s recommendation for appointment of the Auditor-General and the Independent Auditor; and
• increase parliamentary and public awareness of the financial and related operations of government.

During 2005-06 the Committee has fulfilled each of these responsibilities.

Committee inquiries

Unlike other Committees, the JCPAA can initiate its own policy inquiries without permission or reference to any Minister, government or the Parliament. During 2005-06 the Committee has undertaken three major policy inquiries.

The Committee continued its reopened inquiry into aviation security in Australia and in November 2005 tabled Report 406: Developments in Aviation Security since the Committee’s June 2004 Report 400: Review of Aviation Security in Australia—An Interim Report. The Interim Report builds on recommendations made in An Independent Review of Airport Security and Policing for the Australian Government by the Rt Hon Sir John Wheeler DL, which was released in September 2005.

The Committee received 81 submissions and undertook public hearings and inspections in Canberra, Sydney, Brisbane, Cairns, Darwin, Adelaide, Perth, Melbourne, Geraldton, Kalbarri, Carnarvon, Newman, Derby and Broome. The Committee has now concluded taking evidence for the inquiry and will deliver its final report in the near future.

In December 2005 the Committee resolved to inquire into a range of taxation matters. At September 2006 the inquiry had received 56 submissions and taken evidence at public hearings in Canberra, Sydney, Launceston and Melbourne. The Committee expects to report in the first half of 2007.

In March 2006 the Committee resolved to review the financial reporting and equipment acquisition of both the Department of Defence and Defence Materiel Organisation.

Examine Auditor-General’s reports

The Committee has continued a very full schedule in fulfilling its responsibility to review Auditor-General’s reports during 2005-06.

Report 407: Review of Auditor-General’s Reports tabled between 18 January and 18 April 2005 was tabled in August 2006. The report contains the Committee’s findings and recommendations following three public hearings into five Auditor’s reports. The reports were selected for special consideration from the 21 Auditor-General reports that came before the Committee during the period.

The Committee has concluded taking evidence on another 16 Auditor’s reports that it selected from the 59, which were tabled between 17 May 2005 and 16 March 2006. The Committee took evidence on the selected reports at eight public hearings. The Committee will table its considerations and recommendations on the selected reports in the near future.

Consider the operations and resources of the Audit Office

In May 2006, the Committee reviewed the ANAO draft budget estimates for 2006-07, and received a briefing from the Audit Office. The Auditor-General advised the Committee that the ANAO would manage within the allocated budget for 2006-07 without compromising its financial auditing function.

Approve the appointment of the Independent Auditor

Section 8A of the PAAC Act provides for the JCPAA to approve or reject the Audit Minister’s, currently the Prime Minister, recommendation for an appointment of the Auditor-General or Independent Auditor.

On 29 March 2006 the Committee unanimously agreed to endorse the nomination of Mr Geoff Wilson as Independent Auditor and wrote to the Prime Minister accordingly.

On behalf of the Committee, I thank the previous Independent Auditor, Mr Michael Coleman, whose term expired on 30 November 2005 for his oversight of the Audit Office through two terms as Independent Auditor.

I would also like to express our appreciation at the high quality of support that the Auditor-General, Mr Ian McPhee, and his staff have provided to the Committee in relation to our inquiries into audits conducted by the Australian National Audit Office. I commend the Committee’s annual report to the Senate.

Question agreed to.