Yvette D'Ath (Petrie, Australian Labor Party) Share this | Link to this | Hansard source

As deputy chair of the Joint Committee of Public Accounts and Audit, I rise to speak in support of the committee's report 427, Inquiry into international funding agreements. I would like to acknowledge the contribution already made by the member for Lyne and chair of the Joint Committee of Public Accounts and Audit when tabling this report.

This report arises from the first major inquiry of the committee under this term of government. On 9 February 2011 the committee agreed to conduct an inquiry into the national funding agreements between the Commonwealth and the states and territories. The committee's terms of reference required the committee specifically to consider: (1) the changing dynamics of grants to states and territories, the types of grants that are made and the principles, agreements and legislation governing these grants; (2) the extent to which the current system's funding agreements satisfy the requirements of all levels of government, and any suggestions for changes to the process; (3) the need to balance the flexibility to allow states and territories to determine their own priorities, with mechanisms for monitoring and accountability, and ensuring that the objective of funding agreements are being achieved, noting the role of the COAG Reform Council; and (4) the adequacy of parliamentary scrutiny of funding agreements, noting that such agreements are typically negotiated at executive-to-executive level.

As stated in the committee's report foreword, the Commonwealth dedicated a significant proportion of its funding for 2011-12 to the states and territories, with $45.5 billion of payments supporting national agreements and national partnerships. This committee has an ongoing interest in achieving value for money for the Australian taxpayer and believes that the arrangements to distribute this amount deserve parliamentary scrutiny. With the introduction of the Intergovernmental Agreement on Federal Financial Relations in 2009, the committee thought it timely to investigate the implementation of the national funding agreements under this new approach. The states and territories are responsible for delivering services and infrastructure in key areas of our economy through federal funds. There is a community expectation that the Commonwealth will account for those funds and ensure that we are not only achieving value for money but importantly achieving the outcomes sought under the national funding agreements.

The committee found that there was overall support for the new framework and its underlying principles and intent, the key changes being the shift from an inputs based to an outcomes based framework. However, the evidence of the witnesses identified shortcomings and complexities in the performance reporting requirements. The committee found that enhancements need to be made in the area of key performance indicators, better quality data collection and meaningful interpretation of that data. In addition, the committee came to the conclusion that, despite high-level mechanisms for parliament and the public to scrutinise the national funding agreements between the Commonwealth and the states and territories, these mechanisms do not provide an adequate picture of national funding agreements. The committee has made a number of recommendations to enhance both the performance reporting and the scrutiny of the overall process. The committee made 15 recommendations, which go to the framework, implementation, performance reporting and scrutiny of national funding agreements.

In relation to the framework, the committee recommended that the Department of Finance and Deregulation examine the interaction between the new grants framework and grant payments delivered under the Intergovernmental Agreement on Federal Financial Relations. The report should propose options to remove inconsistencies and improve governance arrangements for all grants provided to states and territories.

On implementation and performance reporting, the committee made a number of recommendations that will ensure more clarity around assurance requirements and performance indicators. Although witnesses outlined the importance of states and territories having flexibility in the method of achieving outcomes under the new framework, the outcomes themselves require clarity. The committee has recommended that processes be established to ensure there is clarity on the outcomes to be achieved and that these outcomes are clearly reflected in the national funding agreements.

On enhancing the scrutiny of the national funding agreements, the committee has recommended that key reviews and reports of the COAG Reform Council and the Productivity Commission be tabled in parliament. The committee recognises that COAG and the COAG Reform Council are continuing to enhance the delivery of the Intergovernmental Agreement on Federal Financial Relations and that a range of review activity is underway. It is hoped that the recommendations of this committee will complement those ongoing reforms.

I take this opportunity to thank the chair, the member for Lyne, and all committee members for their work on this inquiry. I also thank the secretariat for their tireless work on what is a committee with a wide breadth of responsibilities and a complex workload. I also thank the Australian National Audit Office for their ongoing assistance with regard to this report and the other work of the committee. I commend the report to the House.

Debate adjourned.

I do not intend to speak at length about report 428 of theJoint Committee of Public Accounts and Audit, Review of Auditor-General's reports Nos 16 to 46 (2010-11). As the chair of the committee, the member for Lyne has already spoken to this report when tabling it in the last sitting of parliament last year. In this report the committee examined the following audit reports: Audits of financial statements of Australian Government entities; The Digital Education Revolution—National Secondary Schools Computer Fund, Maintenance of the defence estate;and Management of student visas. Overall, the review of the audit of financial statements showed positive results. The committee does believe there is further opportunity for improvement in transparency and has asked the Department of Finance and Deregulation to look into improving cross-agency and cross-jurisdictional financial reporting as part of the Commonwealth financial accountability review. In relation to the Digital Education Revolution, the Australian National Audit Office found that educational authorities had reported solid progress on the installation of computers, with the overall program achieving positive results and the fund set to meet its target of providing all students in years 9 to 12 with access to a computer by the start of the 2012 academic year. With questions to the Department of Education, Employment and Workplace Relations, the committee was also able to clarify some of the media reporting about charges being made to parents under this fund for the use of those computers. The department was able to explain how such circumstances have arisen where a school has chosen to introduce, or had already operating, a fee structure for the use of laptops or PCs in the schools. The department's explanation confirmed that the charges were not as a result of the National Secondary Schools Computer Fund and were decisions of the individual schools in relation to access of computers to other students outside of years 9 to 12 or were for other equipment that were superior to what was provided for under the fund because of the interests of the schools and where they wanted to progress in relation to their technology. So it was the individual choice of the schools but certainly not necessary for the accessing and provision of those computers.

In relation to the maintenance of the Defence estate, the committee heard that improvements are being made and, to ensure these improvements continue, the committee has asked that the Department of Defence provide a status report to the committee within six months on their progress. Similarly, changes are being made to the collection and reporting of student visas, and we have seen some improvements in the management of student visas. However, the committee wishes to ensure that improved outcomes are being achieved through these changes. That is why the committee has asked for a progress report on the student Visa program from both the Department of Immigration and Citizenship and the Department of Education, Employment and Workplace Relations within six months. The progress report will assist the committee in assessing progress in light of the government's response to two major reviews impacting the program. As stated for the member for Lyne in tabling this report, overall the inquiry has demonstrated that Australian government departments and agencies are well positioned to continue meeting their financial management obligations and that departments are making progress in addressing outstanding issues highlighted in the Australia National Audit Office reports.

In closing, I once again thank the chair and the committee members for their ongoing work on the committee. I thank the Australian National Audit Office for their ongoing support and assistance to the committee, and I especially thank the secretariat for all their hard work.

I will finish by making personal mention of the committee secretary, Mr David Brunoro. David is eagerly awaiting the overdue birth of his first child. The committee wishes David and his wife well with the imminent arrival of their new baby and thanks him for his work with the committee. I understand David will be taking leave in order to spend time with his new son or daughter and his wife, and we look forward to welcoming him back to the committee in the near future.

Debate adjourned.