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Legislative Assembly Hansard 1982

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Legislative Assembly Hansard 1982 Queensland Parliamentary Debates [Hansard] Legislative Assembly TUESDAY, 23 NOVEMBER 1982 Electronic reproduction of original hardcopy Addresi in Reply 23 November 1982 2531 TUESDAY, 23 NOVEMBER 1982 Mr SPEAKER (Hon, S, J, MuUer, Fassifern) read prayers and took the chair at 11 a,m, QUEENSLAND BOUNDARIES DECLARATORY BILL Assent reported by Mr Speaker, ADDRESS IN REPLY ; Her Majesty's Acknowledgement ! Mr SPEAKER: I haye to inform the House that I have received the foUowing letter from His Excellency the Governor— "Government House, Brisbane, Q. 4001 16th November, 1982, My Dear Mr Speaker, I have the honour to inform you that the Message of Ix)yalty from the Legislative Assembly dated 31st August, 1982, has been laid before The Queen and Her Majesty has asked that her appreciation.be conveyed to the Members of the Legislature of Queensland, Yours sincerely, JAMES RAMSAY, Governor, The Honourable S, J, Muller, M,L,A,, Speaker, Queensland Parliament, Parliament House, Brisbane. 4000" 2532 23 November 1982 Ministerial Statement! PAPERS The following papers were laid on the table, and ordered to be printed:— Reports— Gladstone Harbour Board for the year ended 30 June 1982 C:aims Port Authority for the year ended 30 June 1982. The following papers were laid on the table:— i Orders in CouncU under— Supreme Court Act 1921-1979 Water Act 1926-1981 and the Statutory Bodies Financial Arrangements Act 1982 River Improvement Trust Act 1940-1981 and the Statutory Bodies Finanfciar Arrange­ ments Act 1982 Harbours Act 1955-1982 and the Statutory Bodies Financial Arrangements Act 1982 Harbours Act 1955-1982 Electricity Act 1976-1982 and the,Statutory Bodies Financial Arrangements Act 1982 Electricity Act 1976-1982 Agricultural Bank (Loatris) Act 1959-1981 Agricultural Bank (Loans) Act 1959-1981 and the Statutory Bodies Financial Anange- ments Act 1982 Primary Producers' Organisation and Marketing Act 1926-1981 and the Local Bodies' Loans Guarantee Act 1923-1979 Wheat Pool Act 1920-1979 and the Statutory Bodies Financial Arrangements Act Proclamation under the Fishing Industry Organization and Marketing Act 1982 Regulations under— Public Service Act 1922-1978 Agricultural Standards Act 1952-1981 Fruit and Veget^les, Act 1947-1972 •. .;. By-law under the Harbours Act 1955-1982. VOTE ON ACCOUNT, 1983-84 Mr SPEAKER read[ a message from His Excellency the Governor recommending that the following provision' be made on account of the services of the year ending 30 June 1984— :••:••••••••• -:•: . ..; From the Consolidated Revenue Fund the sum of seven hundred million dollars. From the Trust and Special Funds the sum of eight hundred million dollars; From the Loan Fund the sum of sixty milUon dollars. Message referred to Committee of Supply, MINISTERIAL STATEMENTS Auditor-General's Report on Departmental Appropriation Accounts Hon. L, R. EDWARDS (Ipswich—^Deputy Premier and Treasurer) (11,7 a,m,): Honour­ able members will recaU that, following presentation by the Honourable the Premier on 28 October of the Auditor-General's Report on the I>epartmental Appropriation Accounts for the financial year ended 30 June 1982, there were a number of media reports which highlighted certain comments of the Auditor-General in what, to my thinking, was a quite sensational and provocative way. These reports focussM on references to certain end-of-year procedures which the Auditor-General referred to as "manipulation of accounts payable" and on comments about, to use the Auditor-General's words, ",,, Widespread transfers of appropriations between subdivisional items, all of which have been authorised by the Treasurer in accordance with Section 24 of the (Financial Administration and Audit) Act," Ministerial Statements 23 November 1982 2533 A particular issue was made of the reference to transfers between subdivisional items in the Loan Fund appropriations of the Works Department, this department being the only one specifically mentioned by the Auditor-General in this context, I was at the time, and still am, quUe concerned about the manner in which the Auditor-General's observations were interpreted and pr^ented. I would mention for emphasis that the matters could not have been regarded by the Auditor-General as of such shattering importance as the media reports implied, I say this because at no time during constant discussions with the Auditor-General and his inspectors on matters of substance and relevance to the financial administration of the State's affairs has he or his officers mentioned these matters to me or my officers as ones of serious concern to him. However, whUe it was clear to me that the situation warranted comment by me as Treasurer, I considered U necessary that, before doing so, I seek from the Auditor- General advice and clarification in regard to certain aspects of his report. Having now done this, I wish to place on record my observations in regard to the matters raised by the Auditor-General and, I hope, bring the matters back into correct perspective. Firstly, I want to deal with the use of the facility provided by the Financial Administration and Audit Act for transfers between items within the subdivisions of depiartmental appropriations. As explained quite succinctly and correctiy by the Auditor-General in page 4 of the report under reference^ subdivisional items are the individual units of expenditure on which the appropriations are buUt, and these relate as closely as possible to the organisation of work and the distribution of responsibUity within the departments. Under Section 24 of the Act the Treasurer may direct in writing that there be applied in aid of any subdivisional item that may be deficieht, a further sum out of any surplus arising in any other items of the same subdivision. My responsibility, as Treasurer, for overall financial management and Budget co-ordination requires that I be responsive to the need to reallocate Budget savings to areas of greater priority to ensure maximisation of the benefits Of available funds. To this end, a number of transfers was approved by me in terms of the prescriptions and purposes of the Act and these included those within the Loan Fund appropriations of the Works Department, which were the subject of particular comment by the Auditor-General. This is usual practice provided for by the Act and the transfers were not of any consequential difference in quantity and content than those of previous years. Contrary to the imputations that might be read into Press reports, there is absolutely nothing of a sinister, underhand or manipulative nature in the adjustments made between subdivisional items within the Works Department's or any other department's appropriation. Neither has the Auditor-General stated or inferred that there is. In the case of the Works Department, the transfers within the Loan Fund buildings appropriation to which the Auditor-General refers arise from accounting considerations which are peculiar to the operation of Loan Stores and Loan Special Suspense Accounts items. The necessity to effect them is foreseen when the Budget is framed. The procedure has been in vogue and accepted by the Auditor-General for a number of years. Secondly, I want to comment on the Auditor-General's reference to "manipulation of accounts payable". Here the Auditor-General draws attention to measures taken by departments at the end of the financial year to, ensure that Budget appropriations are not exceeded on the one hand and that funds available to them are utilised to best advantage on the other. The necessity to carefully manage accounts payable throughout and at the close of a financial year is particularly marked in the cash-based governmental financial and budgetary systems. Because appropriations lapse at 30 June and departments are Umited by their appropriations in the level of expenditure that can be incurred, it foUows that despite the careful appUcation of sound management practice, occasions will arise when accounts which 2534 23 November 1982 Ministerial Statements should be paid in a particular financial year have to be held over as a first charge on the succeeding year's appropriations. Conversely, there may be circumstances where a department has unspent appropriations which permit the payment of accounts which otherwise would have fallen due in the succeeding year. I would not condcme the withholding of payments for unreasonable periods and, in practice, a decision to charge an account to one year or another does not necessarily affect the actual time of payment of the account. ' Neither would I, as Treasurer, in any circumstances, condone wasteful expenditure on unnecessary acquisitions or services and I am not aware of any instance where this has occurred. However, as the Auditor^eneral has expressed concern in regard to these end- of-year financial management activities, I have invited him to provide me with details of any that are of a questionable nature so that appropriate action can be taken. In.overview, then, contrary to media reports, the position is that there has been no malpractice, no "fiddling of books" or "cooking of books" -and no"spend-ups" in the Works Department or anyvvhere else. I am satisfied also that the Auditor-General never intended to imply that there have beeri and that his comments were intended to bring to the notice of Parliament in quite general terms certain aspects of established accounting and financial management procedures to which he.wishes to give further attention with a view to improved procedures being implemented if possible, , * Areas of Land Available for Aborigines and Islanders Hon, K, B, TOMKINS (Roma—Minister for Water Resources and Aboriginal and Island Affairs) (11,13 a.m.): It has been aUeged that discrepancies exist between the figures published in the annual reports of the Land Administration Commission and the Departmeht of Aborig­ inal and Islanders Advancement in relation to the areas of land available for Aborigines and Islanders, Similar figures have been published by both instrumentalities for many years and have not preyiously been contested.
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