PARLIAMENT OF VICTORIA Public Accounts and Estimates Committee The Public Accounts and Estimates Committee end of term report for the 58th Parliament Parliament of Victoria Public Accounts and Estimates Committee Ordered to be published VICTORIAN GOVERNMENT PRINTER September 2018 PP No 435, Session 2014–18 ISBN 978 1 925703 70 2 (print version) 978 1 925703 71 9 (PDF version) Committee functions The Public Accounts and Estimates Committee is a joint parliamentary committee constituted under the Parliamentary Committees Act 2003 (Vic). The Committee comprises nine members of Parliament drawn from both Houses of Parliament. The Committee carries out investigations and reports to Parliament on matters associated with the financial management of the State. Its functions under the Act are to inquire into, consider and report to the Parliament on: • any proposal, matter or thing concerned with public administration or public sector finances • the annual estimates or receipts and payments and other budget papers and any supplementary estimates of receipts or payments presented to the Assembly and the Council • any proposal, matter or thing that is relevant to its functions and has been referred to the Committee by resolution of the Council or the Assembly or by order of the Governor in Council published in the Government Gazette. The Committee also has a number of statutory responsibilities in relation to the Office of the Auditor‑General and Parliamentary Budget Officer. ii Public Accounts and Estimates Committee Committee membership Mr Danny Pearson MP Mr David Morris MP Mr Steve Dimopoulos MP Chair Deputy Chair Oakleigh Essendon Mornington Mr Danny O’Brien MP Ms Fiona Patten MLC Ms Sue Pennicuik MLC Gippsland South Northern Metropolitan Southern Metropolitan Ms Harriet Shing MLC Mr Tim Smith MP Ms Vicki Ward MP Eastern Victoria Kew Eltham The Public Accounts and Estimates Committee end of term report for the 58th Parliament iii Committee secretariat Staff Dr Caroline Williams, Executive Officer Dr Kathleen Hurley, Lead Analyst, Public Accounts and Audit Mr Igor Dosen, Analyst, Public Accounts and Audit Ms Jessica Strout, Lead Analyst , Budget Estimates and Outcomes Ms Alanna Symons, Analyst, Budget Estimates and Outcomes Ms Marissa Black, Research Assistant Ms Amber Candy, Desktop Publisher and Administration Officer Committee contact details Address Public Accounts and Estimates Committee Parliament House, Spring Street EAST MELBOURNE VIC 3002 Phone 61 3 8682 2867 Email [email protected] Web www.parliament.vic.gov.au/paec This report is also available online at the Committee’s website. iv Public Accounts and Estimates Committee Contents Preliminaries Committee functions ii Committee membership iii Committee secretariat iv Chair’s foreword vii Committee performance at a glance ix 1 The Public Accounts and Estimates Committee 1 1.1 Background 1 1.2 The Committee’s responsibilities 2 1.2.1 Public accounts function 2 1.2.2 The estimates inquiries 3 1.2.3 The outcomes inquiries 4 1.2.4 Oversight functions for the Committee 5 2 The parliamentary term in review 9 2.1 Highlights of recommendations and outcomes 9 2.2 Engagement activities 11 2.2.1 Demystifying the Budget Papers seminars 11 2.2.2 Presentation by Saul Eslake on productivity growth in Victoria 13 2.2.3 Australasian Council of Public Accounts Committees 13 2.2.4 Australian Accounting Standards Board 14 2.2.5 OCED Network of Parliamentary Budget Officials and Independent Fiscal Institutions 14 2.2.6 Visiting delegations 15 2.3 Communications 16 Appendices 1 Infographics prepared by the Committee 17 2 Public Accounts and Estimates Committee reports tabled in the 58th Parliament 19 3 Attendance at full Committee meetings and hearings 21 4 Sub‑Committee membership and meeting attendance 23 5 The Public Accounts and Estimates Committee budget and expenditure, 2014‑19 25 The Public Accounts and Estimates Committee end of term report for the 58th Parliament v Chair’s foreword It has been a tremendous honour and privilege to Chair the Public Accounts and Estimates Committee this Parliament. The Committee’s objectives have been to enhance Parliamentary control over public finances and ultimately enhance outcomes for the Victorian community. To this end, the Committee has undertaken a busy program of inquiries and activities related to its statutory obligations throughout this parliamentary term. Sixteen reports have been tabled over this session, mostly relating to the scrutiny of the budget papers and the outcomes of government expenditure. The Committee also led the appointment process for a new Auditor-General and the first Victorian Parliamentary Budget Officer. I am really pleased that we have also modernised the process of questioning Ministers and public servants for Estimates. For the first time, Members could directly question public servants and were allotted a block of time to ask as many or as few questions as they wished. This resulted in a far more iterative and conversational discussion occurring during the hearings which I believe improved the amount of information provided to the Committee. The Committee has sought to broaden people’s awareness and understanding of its work. Consequently, social media and infographics have been used to promote the Committee’s work. The Committee has hosted two seminars on Demystifying the Budget Papers for Members of Parliament and electorate staff alike. It was the first time such seminars were hosted by the Committee and they were well received and attended. The Committee’s collaboration with the Department of Treasury and Finance has made this possible. I was also particularly pleased that the Committee was able to secure the services of Saul Eslake to run a briefing session on improving Victoria’s productivity rate, which was held in the Parliamentary Library on 15 August 2016. The Committee has also sought to build and strengthen its relationships with key stakeholders in Victoria and other jurisdictions. It has been an active participant of the Australasian Council of Public Accounts Committees and also hosted delegations who are keen to learn about the work of the Committee. While the outcomes of the Committee’s work are not always immediate, I am very proud to note that some substantive changes have resulted from the work of the Committee this term. These tangible outcomes are set out in this end of term report. I would like to acknowledge the contribution of my fellow Committee members— David Morris MP (Deputy Chair), Steve Dimopoulos MP, Danny O’Brien MP, Tim Smith MP, Vicki Ward MP, Fiona Patten MLC, Sue Pennicuik MLC and Harriet Shing MLC. David Morris, as the previous PAEC Chair, provided me with invaluable advice. My sincere thanks also go to Louise Staley MP The Public Accounts and Estimates Committee end of term report for the 58th Parliament vii Chair’s foreword and Dr Rachel Carling-Jenkins MLC for their service to the Committee. The membership of the Committee has been relatively stable during the 58th Parliament which has undoubtedly aided its work. Although most Committee members were new to Parliament, they brought a wide range of experience and expertise to their PAEC work. This Committee has been a cohesive one from the outset. It for the most part has reached unanimous agreement on difficult and sensitive matters including its investigation of serious allegations against the previous Auditor-General. I think this unity, fostered across five different political parties, highlights what can be achieved even in the most challenging of political environments. Finally, I would like to convey my heartfelt thanks to the staff of the PAEC Secretariat led by Dr Caroline Williams. The hard work and commitment of PAEC staff has greatly facilitated our work and my role as Chair. Danny Pearson MP Chair viii Public Accounts and Estimates Committee Committee performance at a glance Total publications 268 16 Recommendations made Government response to recommendations Supported 41% Supported in principle 27% Under review 8% Not supported 23% N/A 1% Committee meetings 23 73 Sub-Committee meetings Public hearings 982 201 Witnesses at public hearings The Public Accounts and Estimates Committee end of term report for the 58th Parliament ix 1 The Public Accounts and 1 Estimates Committee 1.1 Background The Public Accounts and Estimates Committee is one of nine Joint Investigatory Committees in the 58th Parliament. It is described as a ‘joint’ committee as it has members from both the upper and lower houses of Parliament. There have been some changes to the membership of the Committee over the term of this Parliament. The Committee currently has five different political parties represented on it. The Public Accounts and Estimates Committee Current members of the Public Accounts and Estimates Committee, 20 August 2018, from left to right: (back row) Mr Steve Dimopoulos MP; Ms Harriet Shing MLC; (front row) Ms Sue Pennicuik MLC; Mr Danny Pearson MP, Chair; Mr David Morris MP, Deputy Chair; Ms Fiona Patten MLC. Absent: Mr Danny O’Brien MP, Mr Tim Smith MP, Ms Vicki Ward MP. The Committee’s main powers are set out in the Parliamentary Committees Act 2003 (Vic). The Act states that the functions of the Committee are to inquire into, consider and report to the Parliament on: • any proposal, matter or thing concerned with public administration or public sector finances The Public Accounts and Estimates Committee end of term report for the 58th Parliament 1 Chapter 1 The Public Accounts and Estimates Committee • the annual estimates or receipts and payments and other Budget papers 1 and any supplementary estimates of receipts or payments presented to the Assembly and the Council • audit priorities for the purposes of the Audit Act 1994 (Vic). The Committee is also responsible for protecting the independence of and facilitating the accountability to the Parliament of both the Auditor-General and Parliamentary Budget Officer.