Richard Colbeck (Tasmania, Liberal Party) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

I seek leave to table an explanatory memorandum related to the bill.

Leave granted.

I table an explanatory memorandum, and I seek leave to have the second reading speech incorporated in Hansard.

Leave granted.

The speech read as follows—

The Parliamentary Joint Committee on Public Consultancy and Services Contracts Bill 2025 is a bill to legislate the establishment of a joint parliamentary committee to review and approve consultancy and services contracts entered in to by Commonwealth entities. This bill will provide parliament with greater oversight of consultancy contract expenditure and, with it, increased transparency. It is a sound and practical piece of legislation, one which is most demonstrably required and one that speaks to the very principles of our system of governance and parliamentary control.

The need for this bill and the committee it establishes was overwhelmingly evident as a result of the inquiry led by the Finance and Public Administration References Committee into 'Management and assurance of integrity by consulting services'. The final report from the committee included the following recommendation:

"The committee recommends that the Parliament legislate to establish a Joint Standing Committee to review and approve consultancy and services contracts with provisions and thresholds similar to those in the Public Works Act 1969 but appropriately adjusted to suit the requirements of providing oversight for this significant element of government spending."

This bill seeks to implement that recommendation.

Where large sums of public funds are being expended, there is a case for wider scrutiny than is given at present. In 2022-23 the Australian Government spent $3.272 billion on management advisory contracts. This represents 4.37 per cent of the total value of procurement contracts. Such a significant outlay of public monies demands parliamentary oversight and scrutiny and offers inherent justification for the introduction of the bill. If enacted, the proposed parliamentary joint committee will consider and report to both Houses of Parliament on any public consultancy contract referred to the committee, to a contract that provides consideration to a value above $2 million dollars. The Committee may also inquire into any matter relating to a public consultancy contract or public consultancy contracts generally when referred to it by either House of Parliament or the Minister.

An area where a similar value of government expenditure occurs is that of major public works. Such expenditure is overseen by the Parliamentary Standing Committee on Public Works. The purpose of the Public Works Committee is to provide parliamentary scrutiny of government expenditure for public works. The Parliamentary Joint Committee on Public Consultancy and Services Contracts bill seeks to establish a similar parliamentary body; to make certain the same level of scrutiny is applied to public consultancy contracts as with Public Works.

The main provisions of the bill will ensure high standards of accountability for the expenditure of public money, providing greater transparency of consultancy contracts. In the establishment of a joint standing committee to thoroughly examine and consider proposed public consultancy contracts, this bill will safeguard the maintenance of integrity and achieve value for money.

"Huge sums are being, and have been, spent for years past, without proper inquiries and without that information to which the House is entitled. No big public work ought to be undertaken until this House has passed judgement upon it. That is one of the prime functions of a legislative assembly anywhere and always; indeed, this proposition goes to the very root and basis of our system of responsible government and parliamentary control."

These words were spoken in 1913, by then Prime Minster Joseph Cook in a parliamentary debate regarding the creation of a Commonwealth Public Works Committee. One hundred and twelve years later, the principle being expressed in those words reflects precisely the principle within the Parliamentary Joint Committee on Public Consultancy and Services Contracts bill. This is not an adversarial bill, rather a bill that reflects our function of government. It is a straightforward and practical approach to address and correct current issues relating to engagement in consultancy contracts.

I seek leave to continue my remarks later.

Leave granted; debate adjourned.