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Visit of Members of the Gibraltar Parliament

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Visit of Members of the Gibraltar Parliament Visit of Members of the Gibraltar Parliament UK Parliament 23-25 January 2018 Report CONTENTS EXECUTIVE SUMMARY 2 PROJECT OVERVIEW 3 AIMS & OBJECTIVES 4 PARTICIPANTS 4 KEY STAKEHOLDERS 4 KEY ISSUES 5 RESULTS OF THE PROJECT 8 NEXT STEPS 12 FURTHER RESOURCES 12 ACKNOWLEDGEMENTS 12 ANNEX A: PROGRAMME OVERVIEW 13 ANNEX B: GIBRALTAR DELEGATION BIOGRAPHIES 15 ANNEX C: SPEAKER BIOGRAPHIES 17 Executive Summary Visit of Members of the Parliament of Gibraltar: Report 2 EXECUTIVE SUMMARY supported Members in building their capacity to effectively scrutinise public expenditure. It also CPA UK has formed a consortium with the facilitated discussion of other mutual issues and UK National Audit Office (NAO) and the UK priorities such as trade, plans for the UK exiting Government Internal Audit Agency (GIAA) to the European Union, and the Commonwealth. deliver a three-year project of activities to support relevant UK Overseas Territory (UKOT) During meetings over the three days delegates stakeholders. The programme brings together discussed financial scrutiny by individual MPs, parliamentarians and audit officials from the the relationship between MPs and the Auditor- Territories and UK to discuss frameworks for General, the role of the PAC, the operation of PAC good practice and priorities in public financial hearings, scrutiny support available to Members, management. The Project was launched and other areas such as plans for the UK exiting with the CPA UK and UK Overseas Territories the European Union and the Commonwealth. Parliamentary Forum on Public Financial Meetings with the Rt Hon Hilary Benn MP, Chair Management in March 2017. At the Forum, of the Committee on Exiting the European bilateral discussions provided an opportunity to Union, the House of Lords European Union discuss priorities and specific challenges in public Select Committee and the Gibraltar All Party financial oversight and audit. Parliamentary Group allowed for a discussion of Gibraltar’s concerns. The Parliament of Gibraltar does not have a Public Accounts Committee (PAC). Members Delegates recorded significant increases in levels debate the Audit Office’s Report on Government of understanding around the key themes of the Accounts annually and exercise oversight of programme. The programme received extensive the Executive through other tools, primarily local media coverage, helping build awareness questions. The Government set up the about the role and functions of the PAC, and the Commission on Democratic and Political Reform additionality it brings. The delegation identified in 2012. The Commission reported in January a number of areas they were particularly 2013, and its findings did not recommend the interested in, including the relationship that creation of a PAC. exists between UK MPs and the UK Auditor- General. They expressed a desire to see an In light of this, CPA UK organised a programme enhanced relationship between themselves to support Members of Parliament from the and the Gibraltar Audit Office (GAO), including Government and Opposition in enhancing their increased communication between MPs and the oversight role, supporting effective financial GAO, seeing the Gibraltar Audit Office undertake scrutiny outside of the framework of a PAC. The more value for money oriented work, and programme shared approaches between the greater support provided within the Parliament Gibraltar Parliament and UK Parliament on the to Members with analysing and scrutinising oversight of public spending and parliamentary departmental spending. They also identified public financial management. It facilitated a desire to learn more about the composition the sharing of experiences and good practice of other UKOT PACs, the work they undertake, between Members of both parliaments and and the working relationship between Auditor- Generals and other UKOT legislatures. PROJECT OVERVIEW Sacramento, then Assistant Principal Auditor and now Principal Auditor, and Sergio Braz, Assistant 1.01. CPA UK has formed a consortium with Principal Auditor, both of the Gibraltar Audit the UK National Audit Office (NAO) and the Office. UK Government Internal Audit Agency (GIAA) to deliver a three-year project of activities to 1.03. The Parliament of Gibraltar does not support relevant UK Overseas Territory (UKOT) have a Public Accounts Committee; Members stakeholders. The programme brings together debate the Audit Office’s Report on Government parliamentarians and audit officials from the Accounts annually and exercise oversight of Territories and UK to discuss frameworks for the Executive through other tools, primarily good practice and priorities in public financial questions. The Government set up the management. CPA UK’s programme team is Commission on Democratic and Political Reform working in partnership with Territory legislatures in 2012 to examine Gibraltar’s political and and audit institutions to gain insight and electoral system. The Commission reported in expertise to ensure that activities fit the specific January 2013, and its findings did not recommend context and demand of each Territory. the creation of a PAC. 1.02. The Project was launched with the CPA 1.04. Following consultation with various UK and UK Overseas Territories Parliamentary stakeholders, CPA UK organised a three-day Forum on Public Financial Management in visit to Westminster, which was focused on Miami on 1-2 March 2017. As part of the Forum, international good practice in public financial bilateral discussions between PAC Chairs, Auditor management. It offered support to Members Generals, and Heads of Internal Audit, provided of Parliament from the Government and an opportunity to discuss priorities and specific Opposition in enhancing their oversight role, challenges in public financial oversight and audit, supporting effective financial scrutiny outside and convey how the UK Overseas Territories of the framework of a PAC, which the Gibraltar Project (UKOTP) could best support their roles. Parliament does not operate. Gibraltar was represented at the Forum by Tony AIMS & OBJECTIVES & the Gibraltar Savings Bank • Hon. Roy Clinton MP, Shadow Minister for 2.01. Aim: To enable a delegation of Members Public Finance, Inwards Investment, the of the Gibraltar Parliament to build their Gibraltar Savings Bank and Small Business understanding and the capacity of their role in • Hon. Edwin Reyes MP, Shadow Minister for oversight of public spending and public financial Education, Training & Skills, Employment, management. Sports & Leisure, Culture, Public Sector & MOD Industrial Relations 2.02. Objectives: • Hon. Lawrence Llamas MP, Member of a. To share approaches between the Gibraltar Parliament Parliament and UK Parliament on the oversight • Hon. Marlene Hassan Nahon MP, Member of of public spending and parliamentary public Parliament financial management. • Members of the UK Parliament b. To facilitate the sharing of experiences and • Officials of the UK Parliament good practice between Members of the Gibraltar • National Audit Office Parliament and UK Parliament. • Chairs, Members and Clerks of the UK c. Support visiting Members in building Public Accounts Committee and Exiting the their capacity to effectively scrutinise public European Union Committee expenditure d. To discuss other mutual issues and priorities KEY STAKEHOLDERS of the Gibraltar Parliament and UK Parliament, such as trade, Brexit, and the Commonwealth. 4.01. • Gibraltar Parliament (Government and PARTICIPANTS Opposition Members) • CPA Gibraltar 3.01. • CPA UK • Hon. Sir J J Bossano KCMG MP, Minister for • UK Parliament Economic Development, Telecommunications • Gibraltar Government Office, London • Governor’s Office, Gibraltar Financial Scrutiny – Stakeholder Web: Observing the PAC post-hearing private meeting Kevin Foster MP (former PAC Member), financial scrutiny by individual MPs and by the PAC UK PAC – Meeting with Chris Evans MP, 2nd Clerk, and Chair Liaison Scrutiny Unit Observing the PAC Hearing NAO Briefing on how the NAO works with Parliament • and its outputs, including its major reports, short guides, and Value for Money studies. Jennifer KEY ISSUES Brown discussed the five dimensions to the NAO’s work – Financial Audit, Value for Money, 5.01. Financial Scrutiny by Individual MPs Investigations, Support for Parliament and Kevin Foster MP discussed with the delegates the International. mechanisms for financial scrutiny by individual MPs in Westminster. A range of mechanisms Jennifer Brown highlighted that the Auditor exist, including Prime Minister Questions, General and NAO’s Value for Money work where recent scrutiny has included discussion provided an opinion to Parliament on whether of the public contracting of services to Carillion government had secured value for money when following the collapse of this private contractor, spending taxpayers’ money. The Auditor General and the value for money provided through the could examine any area of a public organisation building of government buildings through Private where taxpayers’ money is spent. The NAO could Finance Initiative (PFI) contracts. However, it was also conduct investigations into areas of concern noted that such discussions were often party raised by MPs or others. The Auditor General political. Departmental questions also provided currently meets with the PAC Chair twice a week, an opportunity to scrutinise spending in each and other department Committee chairs once a department, or Treasury questions to scrutinise week, as well as individual MPs. While the Auditor more
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