Public Accounts and Public Works Committee Report 1: Annual Report 2008-09

Introduction Committee Members

1. The Public Accounts and Public Works 4. The Legislative Assembly appointed the Committee is a statutory committee of the Public Accounts Committee and the Public Queensland Parliament established under Works Committee of the 52 nd Parliament on the Act 2001. 11 October 2006. Committees comprise four members nominated by the Leader of 2. In accordance with the legislation, the the House and three members nominated by committee is required to table in the the Leader of the Opposition. Legislative Assembly a report about its activities during the year. The report must 5. On 23 February 2009 the 52 nd Parliament include: was dissolved for the State Election to be held on 21 March 2009. The Public  a list of meetings and the names of Accounts Committee and the Public Works members attending or absent from each Committee of the 53 rd Parliament were meeting appointed on 23 April 2009. On  a summary of issues considered during 19 May 2009, the Legislative Assembly the year passed the Parliament of Queensland  a brief description of ministerial Amendment Bill which merged the Public responses to committee Accounts Committee and the Public Works recommendations Committee to form the Public Accounts and Public Works Committee. This bill was  a statement of the committee’s revenue assented to and commenced on and expenditure.1 28 May 2009.

3. This report has been prepared in accordance with these requirements for the period Public Accounts and Public Works Committee (53 rd Parliament) 1 July 2008 to 30 June 2009. It relates to the activities of the Public Accounts Committee and the Public Works Committee of the 52 nd Parliament (1 July 2008 to 23 February 2008), the Public Accounts Committee and the Public Works Committee of the 53 rd Parliament (23 April 2009 to 28 May 2009) and the Public Accounts and Public Works rd Committee of the 53 Parliament (28 May 2009 to 30 June 2009).

From top left to bottom right : Mr Wayne Wendt MP , Chair and Member for Ipswich West (ALP); Mr Ian Rickuss MP , Deputy Chair and Member for Lockyer (LNP); Mr Michael Crandon MP , Member for Coomera (LNP); Ms Dianne Farmer MP , Member for Bulimba (ALP); Mr Ray Hopper MP , Member for Condamine (LNP); Ms Mary-Anne O’Neill MP , Member for Kallangur (ALP); and Mrs Christine Smith MP , Member for Burleigh 1 (ALP). Parliament of Queensland Act 2001 (Qld) s 108

Page 1 Public Accounts Committee (52 nd Parliament)  works (public works) undertaken by an entity that is a constructing authority for the works if the committee decides to consider the works; and

 any major GOC works if the committee decides to consider the works. 2

7. The term ‘government financial documents’ includes – From top left to bottom right: Hon Ken Hayward MP , Chair and  documents tabled in the Assembly under the Member for Kallangur (ALP); Mr Vaughan Johnson MP , Deputy Financial Accountability Act 2009 3, for Chair and Member for Gregory (LNP); Mr John English MP, Member for Redlands (ALP); Mr David Gibson MP , Member for Gympie example annual reports of departments and (LNP); Ms Grace Grace MP , Member for Brisbane Central (ALP); statutory bodies Mr John-Paul Langbroek MP, Member for Surfers Paradise(LNP); and Mr Peter Lawlor MP , Member for Southport (ALP).  annual financial statements and annual reports of Government Owned Corporations [Note regarding 52 nd Parliament: On 30 October 2007, Ms Carolyn Male MP, Member for Glass House, was discharged from the committee  a document that would be a government and Ms Grace Grace MP, Member for Brisbane Central, was appointed financial document if it had been tabled in to the committee.] the Assembly as required by law. nd Public Works Committee (52 Parliament) 8. In deciding whether to consider public works, the committee may have regard to:

(a) the stated purpose of the works and the apparent suitability of the works for the purpose; and

(b) the necessity for, and the advisability of, the works; and

(c) value for money achieved, or likely to be From top left to bottom right: Ms Barbara Stone MP , Chair and achieved, by the works; and Member for Springwood (ALP); Hon Kev Lingard MP , Deputy Chair and Member for Beaudesert (LNP ); Mr Stuart Copeland MP , (d) revenue produced by, and recurrent costs Member for Cunningham (LNP); Mr Ray Hopper MP, Member for Darling Downs (LNP); Mr Jason O’Brien MP , Member for Cook of, the works or estimates of revenue and (ALP); Mr Wayne Wendt MP, Member for Ipswich West (ALP); and costs for the works; and Mr Phil Weightman MP , Member for Cleveland (ALP). (e) the present and prospective public value of Role of the Committee – Public the works, including, for example, Accounts and Public Works Committee consideration of the impact of the works on the community, economy and environment; 6. The committee’s legislated role is: and

 the assessment of the integrity, economy, (f) procurement methods for the works; and efficiency and effectiveness of government financial management by: (g) the balance of public and private sector o examining government financial involvement in the works; and documents and

o considering the annual and other reports of the Auditor-General; 2 Parliament of Queensland Act 2001 (Qld) s 95 3 From 1 July 2009 the Financial Administration and Audit Act 1977 has been replaced by the Financial Accountability Act , however for the period this report covers the Financial Administration and Audit Act was the applicable legislation.

Page 2 (h) the performance of – (ii) has granted, or will or may grant land, or an interest in land or another right, (i) the constructing authority for the privilege, monopoly, concession, works; and franchise or interest; or

(ii) the consultants and contractors for (iii) has contributed, or will or may the works; contribute, resources of any kind; and

with particular regard to the time taken for (b) the works have become, or will or may finishing the works and the cost and become, the absolute property of the State quality of the works; and or another entity representing the State.

(i) the actual suitability of the works in 12. Major GOC works means works (other than meeting the needs and in achieving the public works) undertaken as part of a major stated purpose of the works. 4 infrastructure investment outlined in a GOC’s statement of corporate intent. 9. An entity is a constructing authority for works if the entity is the State or a 13. The committee can have matters referred to department. An entity is also a constructing it by the Legislative Assembly. In addition, authority for works if: the committee can refer issues within its jurisdiction to the Auditor-General for  the entity is established under an Act, or consideration. 5 under State or local government authorisation, for a public, State or local 14. The committee does not review the annual government purpose; and Budget estimates. That role is carried out by estimates committees appointed each  the works are funded from the consolidated year by the Legislative Assembly. fund or the proceeds of a financial arrangement within the meaning of the 15. The committee’s role is to exercise Statutory Bodies Financial Arrangements parliamentary scrutiny over the Act 1982 . government’s management of the public purse including the state’s capital works 10. A GOC is a constructing authority for works projects. if the works are undertaken specifically or substantially for a community service 16. The committee considers all reports of the obligation of the GOC or for major GOC Auditor-General. In reviewing the reports works referred to the committee by the the committee invites the Auditor-General Assembly. to provide briefings to highlight the key findings and issues. These briefings enable 11. An entity (a commercial entity) is a the committee to question the Auditor- constructing authority for works if, under an General and provide the members with a agreement for the works: better appreciation of the significance of issues raised. (a) the state or another entity representing the State – 17. The committee assesses issues together with agency responses and if considered (i) has, or will or may have, a financial beneficial to the public interest, will liability or interest; or examine the matter further. This examination may take the form of written responses, briefings/meetings or public hearings.

4 Parliament of Queensland Act 2001 (Qld) s 95 5 Parliament of Queensland Act 2001 (Qld) ss 84 and 95.

Page 3 Audit office budget 18. The committee also inquires into and reports to Parliament on the state’s capital works 23. The Treasurer must consult with the projects. A committee inquiry can occur at committee in developing the annual budget any stage from planning to post completion of the audit office 7. and can include works by government departments and major works by 24. In November 2008 the Treasurer wrote to government owned corporations. The the committee outlining the 2009-10 Budget committee may decide to conduct a timetable and process for QAO. In particular inquiry or the parliament may May 2009, the Treasurer wrote further refer specific works for investigation. advising of the 2009-10 Budget outcomes for QAO. 19. The committee tries to review capital works projects from as wide a selection of 25. The Auditor-General subsequently met with departments and other constructing the committee to discuss funding resources. authorities as is practicable, in a variety of There were no issues raised that required locations throughout Queensland, of further consultation with the Treasurer. differing cost and scale and at various stages of implementation. Strategic reviews

20. The focus of all government capital works 26. Strategic reviews of the audit office must be projects must be on maximising the benefits conducted every five years by appropriately to the community. The committee is qualified persons appointed by the Governor determined to ensure Queensland gets best in Council. The Premier is required to value for money from the development of consult with the committee on the capital assets by both public and private appointment and the terms of reference. 8 agencies, and that the agencies manage the assets to provide the best possible outcomes 27. Such reviews include an examination of the for Queenslanders. Auditor-General’s functions and the performance of those functions to assess Auditor-General and Queensland whether they are being performed Audit Office economically, effectively and efficiently.

21. The Auditor-General Act also gives the 28. Under s 70(7) of the Auditor-General Act committee specific statutory responsibilities the report is referred to the committee. in relation to the Auditor-General and the Queensland Audit Office (QAO). 29. The last strategic review was completed in October 2004. The committee continues to monitor QAO’s progress with some of the Appointment and removal of Auditor- recommendations made from this review. General 30. The Premier wrote to the committee in 22. The Premier (as the responsible minister) June 2008 seeking the committee’s must consult with the committee about the comment on the proposed appointment of appointment selection process, the the reviewers and the terms of reference for appointment of the person as Auditor- the next strategic review of QAO. General and the terms of appointment. The committee must also agree to any proposed motion to remove the Auditor-General from office 6.

7 Auditor-General Act 2009 , s21 6 Auditor-General Act 2009 , ss 9, 11 and 18. 8 Auditor-General Act 2009 , ss 68, 69 and 70

Page 4 Reporting of sensitive information 36. The EPA advised the committee that there was a low risk of the fees being challenged 31. If the Auditor-General considers that as the amounts being charged were modest disclosure of a matter in a report to and the costs associated with a challenge to Parliament would be against the public the High Court were significant. The interest, the matter must be reported to the committee was also advised that the revenue 9 committee instead . raised from these fees was not material in the context of the state’s budget. 32. The Auditor-General did not report any matters of this nature to the committee 37. It should be noted that at no time was the during the reporting period. state acting illegally by continuing to charge these fees. Whilst the Solicitor-General’s 33. In 2002, the Auditor-General reported to the opinion was considered, it was based on the committee under this provision in relation to results of a legal case which related to licence fees administered by the tobacco not to ERAs and it would need to be Environmental Protection Authority 10 tested in the courts before any formal (EPA). The committee continued to conclusion could be made regarding the monitor the resolution of this issue and legality of these fees. received regular progress reports and briefings from the department. 38. The EPA advised the committee that for various reasons they intended to undertake a 34. In May 2003, the EPA received a legal full review of Schedule 1 of the opinion from the Solicitor-General advising Environmental Protection Regulation 1998 that the fees levied in relation to certain which included a full benchmarking study, a environmentally relevant activities (ERAs) 11 pro-active consultation program with key were likely to be considered to be excises. stakeholders and an analysis of economic This opinion was based on the the decision and financial information. The development of the High Court in the case of Ha v New 12 of a new fee structure also necessitated a South Wales [1997] 189 CLR 465 where it full hazard assessment for each of the 85 was held that the States and Territories did ERAs listed in Schedule 1 and a Regulatory not have the power to levy tobacco franchise Impact Statement. fees. Under Section 90 of Constitution excises are the exclusive 39. Due to the time taken to complete these legislative power of the Commonwealth activities and the potential impact on some Parliament. industry sectors as a result of the change in fee structure the EPA advised the committee 35. The High Court applies substance over form in February 2006 that the changes would be considerations and it was considered that no implemented as part of the remake of the new form of words would alter the Environmental Protection Regulation which characterisation of an excise once it has was due to expire in August 2008. been judged to be an excise. The Solicitor- General recommended that the situation 40. The new Environmental Protection could be remedied by removing the fees that Regulation 2008 was gazetted on could be considered to be excises from the 7 November 2008. It incorporates full cost regulation and imposing fees that were recovery for the regulation of ERA, an either a fee for service or a fee for the increase in licence fees and the use of privilege of carrying on a business. environmental emission profiles to determine licence fees.

9 Auditor-General Act 2009 , s 66 (previously Financial Administration 41. With the gazettal of the new Regulation the and Audit Act 1977 , s104) 10 See Public Accounts Committee Report No. 63: Annual Report 2002- matter has now been resolved. 03 (2003) 2 and Auditor-General of Queensland, Report No 5 2002-03 (2002) 28. 11 Correspondence from Mr L Scanlan, Auditor-General of Queensland to PAC dated 19 December 2002: 1 12 Ha v New South Wales [1997] 189 CLR 465

Page 5 Pecuniary interests declaration 48. Where necessary, the committee may seek further information from the relevant 42. The Auditor-General is required to lodge a agency. Some issues may require separate pecuniary interests statement with the inquiry with specific terms of reference. Speaker. The Speaker must provide a copy of the statement to the committee if 49. Details of the committee’s reviews are 13 requested . reported in the sections titled ‘Committee Reports’ and ‘Committee Inquiries’. Audit office strategic plan Meetings with the Auditor-General 43. Section 7(3) of the Financial Management Standard 1997 required the Auditor-General 50. The Public Accounts Committee (52 nd to consult with the committee about the Parliament) met with the Auditor-General resource implications of the strategic plan. on the following dates:

44. Consultation with the committee occurred in Date Purpose May 2009 in relation to QAO’s 2009-2013 strategic plan. 09-09-08 Auditor-General’s Report Nos 3, 4 and 5 for 2008 and upcoming reports 45. The Financial and Performance 21-10-08 Public Hearings held to discuss Management Standard 2009 (s9) requires Management of Funding to NGOs 14 (Auditor-General’s Report No 2 for that accountable officers develop a 2007) strategic plan and in developing the plans 25-11-08 Auditor-General’s Report Nos 6, 7, 8 they must comply with the document called and 9 for 2008, QAO Annual Report ‘Agency planning requirements’ prepared and QAO Budget by the Department of Premier and Cabinet. 15 51. The Public Accounts and Public Works That document requires that the Auditor- Committee (53 rd Parliament) met with the General consult with the Treasurer and the Auditor-General on the following date: committee about the resource implications of strategic plans for the audit office. 16 Date Purpose

Review of audit reports 01-06-09 Auditor-General’s Report No 1 for 2009, upcoming reports, QAO 46. Six audit reports were tabled by the Auditor- Budget, QAO Strategic Review, QAO Office accommodation, impact of General during the 2008-09 financial year. MOG changes and contract audit The Auditor-General met with the arrangements. committee to brief the members on key aspects of each report. Committee Reports 47. In reviewing the reports, the committee assesses the nature of the findings and Ministerial responses issues in terms of their impact on the integrity, economy, efficiency and 52. A ministerial response to committee effectiveness of government financial recommendations is required to be tabled in management together with the explanations the Assembly within three months of the and undertakings advanced by management report being tabled. 17 If the minister is of the audited agencies. unable to comply with this requirement, an interim response must be tabled setting out the reasons for not complying. A final ministerial response is required no later than six months after the committee’s report is 13 Auditor-General Act 2009 , s 12 14 The Auditor-General is the accountable officer for QAO under the tabled. Public Service Act 2008 . 15 Financial and Performance Management Standard 2009 , s 9 16 , Agency Planning Requirements , May 2009: 11-12 17 Parliament of Queensland Act 2001, s 107

Page 6 53. The ministerial response must indicate 60. The committee made four recommendations whether the recommendation will be aimed at improving agencies’ capacity to adopted and the implementation timeframe. produce better performance information. Reasons must be provided for any recommendations that will not be adopted. 61. The Premier tabled the response supporting the committee’s recommendations on 54. Copies of the all responses are published on 28 November 2008. the committee’s Internet page. Public Accounts Report 80 – Review of Public Accounts Committee Report No 79 Auditor-General Report 5 for 2007 – – Review of Auditor-General Report 4 for Results of Audits as at 31 May 2007 – 2007 – Are departmental output Section 2.6 – Governance of Public performance measures relevant, Sector Companies appropriate and a fair representation of performance achievements? 62. The Public Accounts Committee tabled its report on the Review of Auditor-General 55. The Public Accounts Committee tabled Report 5 for 2007 – Results of Audits as at Report No 79 – Review of Auditor-General 31 May 2007 – Section 2.6 – Governance of Report 4 for 2007 – Are departmental Public Sector Companies on output performance measures relevant, 11 September 2008. appropriate and a fair representation of performance achievements? on 28 August 63. The Auditor-General tabled Report No 5 for 2008. 2007 on 9 August 2007. The committee resolved to investigate the issues raised in 56. The Auditor-General tabled Report No 4 for the report further. 2007 on 7 August 2007. The committee resolved to investigate the issues raised in 64. The committee invited the Auditor-General the report further. and representatives from Queensland Treasury, Queensland Transport, the 57. The committee invited the Auditor-General Department of Main Roads, the Department and representatives from Queensland of Infrastructure and Planning and the Treasury, the Department of Education, Department of Tourism, Regional Training and the Arts, Department of Development and Industry to attend a public Tourism, Regional Development and hearing held on Monday 21 April 2008. Industry, the Environmental Protection Agency and the Queensland Police Service 65. The issue of the use of the company to attend a public hearing held on Thursday structure in the Queensland public sector for 21 February 2008. carrying out government business has been raised by the Auditor-General in a number 58. The Auditor-General has undertaken a series of audit reports in recent years. It has also of audits examining output performance been the subject of a number of Public reporting. The Auditor-General found that Accounts Committee inquiries and reports. there was a lack of clarity across the sector about what are relevant and appropriate 66. The Auditor-General found that in some performance measures. cases these companies have not been subject to the same high level of governance and 59. The committee found that the area of output accountability mechanisms expected of performance reporting is one that is not well other types of government entities. understood by agencies. It also found that achieving output performance measures that 67. The committee reviewed Queensland allow stakeholders to assess whether the Treasury’s Guidelines for the Formation, quantity, quality, timeliness and cost Acquisition and Post Approval Monitoring measures are relevant for the purpose they of Companies (the guidelines) as part of its are intended to achieve, is not an easy task. inquiry.

Page 7 68. The committee made four recommendations 73. The committee advertised the inquiry and as follows: called for submissions in The Courier-Mail on 27 October 2007. At the same time it  that Queensland Treasury strengthen the also released an inquiry information paper emphasis in the guidelines on the need to and wrote to a variety of interested persons investigate whether the company structure is and organisations advising them of the suitable for the purpose proposed; inquiry and inviting them to make a submission.  that Queensland Treasury collate and maintain a central register of all public 74. On 29 February and 14 March 2008 the sector companies including identification of committee inspected a variety of schools which agency is responsible for what with new and refurbished facilities. It company; conducted a public hearing at Parliament House on 14 March 2008.  that Queensland Treasury include in the guidelines a section on the process to be 75. The committee supported the $290 million followed when transferring companies prep school year capital works program, between public sector entities; and which was delivered through a partnership between the Department of Education,  that Queensland Treasury include a time Training and the Arts (DETA) and the limit on when this process of transferring Department of Public Works (DPW). companies between public sector entities is completed. 76. The prep capital works program involved the construction and/or modification of 69. The Treasurer tabled the response on buildings over three years at around 1000 10 December 2008 accepting the state primary schools across Queensland, committee’s recommendations with the including approximately 1800 classrooms at exception of placing a time limit on when locations as remote as Saibai Island in the the process of transferring companies is Torres Strait, and Boulia in the far west. completed. The Treasurer advised that the need for this to be completed in a timely 77. The committee was satisfied that the work is manner would be reinforced in the revised suitable for its purpose. It was impressed by guidelines. the facilities, particularly given the tight time frames and scale of the work required. Public Works Committee Report 100 – Pre There was a high level of community School Year Capital Works Program demand for access to a universal full-time prep year and in general there has been 70. The Public Works Committee tabled its positive feedback about the introduction of a report on the Prep School Year Capital prep school year in state schools. Works Program on 2 December 2008. 78. Overall, the committee was satisfied that the 71. The committee launched an inquiry into the project represented value for money for $290 million Prep School Year Capital Queensland. Works project in October 2007.

72. The project involved the construction and/or 79. Construction costs were comparable to modification of buildings in State primary similar buildings and the prep facilities are schools across Queensland. The project was suitable for their purpose. The project undertaken to allow the introduction of the generated employment in all areas of universally available, full-time preparatory Queensland. Around 1640 private sector year of schooling, part of the wider full-time equivalent (FTE) jobs and 466 Education and Training Reforms for the FTE public sector jobs were generated by all Future initiative that centres around contracts. strategies to foster life-long learning for Queenslanders.

Page 8 80. Ongoing jobs have been created with the 86. The committee found that skills shortages employment of teachers, administrative and can occur in any economic climate but were other support staff and from maintenance of exacerbated over the previous 5 years due to the buildings and grounds. strong economic growth and structural changes in the way business operates. 81. The committee considered a range of issues and makes a number of recommendations to 87. The committee acknowledged that there improve the future design of prep facilities were no quick and easy solutions, however, and to improve consultation at all stages of believed that there is a better chance of future DETA projects improving the situation if government at all levels and industry work together. 82. The Minister tabled an interim response 22 April 2009 and a final response to this 88. The committee made three report on 1 June 2009. All recommendations aimed at identifying, recommendations were supported with the promoting and disseminating information exception of recommendation 2a. The with a view to better predicting future skills Minister advised that the current and future needs, improving inter-agency coordination focus of Prep delivery standards will be on and improving opportunities for older functionality and practical applications that workers. have been tested and proven to deliver a satisfactory work space rather than 89. The Minister tabled an interim response on prescriptive measures such as ‘area per 22 April 2009 and a final response on 4 June child’. 2009 supporting the committee’s recommendations. Public Accounts Committee Report No 81 – Review of Auditor-General Report No 7 for 2007 – Addressing Skills Shortages in Committee Inquiries Queensland 90. The Public Accounts and Public Works 83. The Public Accounts Committee tabled its Committee has resolved to finish those report on the Review of Auditor-General inquiries commenced by the Public Report No 7 for 2007 – Addressing Skills Accounts Committee and the Public Works Shortages in Queensland on 4 December Committee of the 52 nd Parliament. 2008.

84. The Auditor-General tabled Report No 7 for Review of Audit Report No 2 for 2007 - 2007 on 13 November 2007. The committee Results of Performance Management resolved to investigate the issues raised in Systems Audits of Management of the report further. Funding to Non-Government Organisations 85. The committee invited the Auditor-General 91. The Auditor-General tabled Report No 2 for and representatives from the Department of 2007 on 22 May 2007. The Public Education, Training and the Arts, the Accounts Committee resolved to investigate Department of Employment and Industrial the issues raised in the report further. Relations and the Department of Tourism, Regional Development and Industry and 92. On 15 November 2007, the committee representatives from the Australian Industry published a discussion paper and called for Group, Commerce Queensland, the Master public submissions. Builders Association of Queensland and the Civil Contractors Federation to attend a 93. The main consideration for the committee is public hearing held on Monday whether the current management of funding 21 April 2008. to Non-Government Organisations provides relevant information to stakeholders.

Page 9 94. Other considerations are: 99. The committee has initiated this inquiry as a result of its examination of the Report of the  whether stakeholders can readily assess the Strategic Review of the Queensland Audit economy, efficiency and effectiveness of Office. The reviewers' recommendation that government funding to Non-Government the Public Accounts Committee evaluate the Organisations value of PMS audits at the end of a three  Auditor-General Report No 2 for 2007 to year period and report on the effectiveness Parliament of the PMS audit mandate in terms of  impact of current funding applications and Parliament's previously expressed position reporting requirements upon Non- was supported by the committee. Refer to Government Organisations Public Accounts Committee Report No 69.  assessing the benefits of new disclosure 100. The issues to be considered include: requirements  What is the role of the PMS audit mandate?  opportunity to improve accountability and Does it fulfil its function in the overall value for money by changing processes accountability process for the Parliament? without placing more administrative What improvements has the mandate requirements on NGOs and government. brought to the accountability systems?  Is the concept of PMS auditing understood 95. The committee received 13 submissions in response to the discussion paper. Copies of by both auditor and auditee? the submissions are available on the  Is the PMS audit mandate being used committee’s website. effectively by QAO?  How does QAO assess if individual PMS 96. The committee invited the Auditor-General and representatives from the Department of audits have been effective? Premier and Cabinet, Queensland Treasury,  How could the effectiveness of the PMS Queensland Health, the Department of audit mandate be improved? Communities, Disability Services, 101. The committee has received 21 submissions Boystown, OzCare, QCOSS, MDA, NDS addressing the terms of reference. The (Qld), Peakcare and Relationships Australia committee also sought additional to attend a public hearing held on Tuesday information from the Department of Premier 21 October 2008. and Cabinet and from some agencies who 97. This inquiry will be completed in the next provided submissions. reporting period. 102. This inquiry will be completed in the next reporting period. Inquiry into an evaluation of the effectiveness of the performance Review of Audit Report No 1 for 2008 – management systems (PMS) audit Enhancing Accountability through mandate in terms of the Parliament’s Annual Reporting previously expressed position 103. The Auditor-General tabled Report No 1 for 98. In May 2008, the Public Accounts 2008 on 17 April 2008. The committee Committee (52 nd Parliament) resolved to resolved to investigate the issues raised in conduct an inquiry into an evaluation of the the report further. effectiveness of the performance 104. This inquiry will be completed in the next management systems (PMS) audit mandate reporting period. in terms of the Parliament’s previously expressed position.

Page 10 Review of Audit Report No 3 for 2008 – 112. This inquiry will be completed in the next Management of Rural Fire Services in reporting period. Queensland

105. The Auditor-General tabled Report No 3 for William McCormack Place – Stage 2 2008 on 15 May 2008. The committee project resolved to investigate the issues raised in the report further. 113. The Public Works Committee launched an inquiry into the $79.5 million McCormack 106. This inquiry will be completed in the next Place (Stage 2) project in May 2008. reporting period. 114. In July 2008, the committee wrote to various The South East Queensland (Gold Coast) interested parties and organisations Desalination Project providing an inquiry information paper and inviting them to make a submission by 107. The Public Works Committee launched an 26 September 2008. The committee inquiry into the $1.2 billion South East received six submissions in response. Queensland (Gold Coast) Desalination project in April 2008. 115. The committee inspected the building and held a public hearing in Cairns on Friday 108. The project involves the delivery of a 31 October 2008. seawater reverse osmosis desalination facility on the Gold Coast and associated 116. This inquiry will be completed in the next raw water delivery, saline water release and reporting period. potable (drinking) water delivery systems. The plant is located at Tugun on a 6 hectare Brisbane Supreme and District Court former landfill site adjacent to the Gold Complex Inquiry Coast Airport. When fully operational the facility will supply 125 mega-litres a day of 117. The Public Works Committee launched an pure drinking water to South East inquiry into the Brisbane Supreme and Queensland (SEQ). District Court Complex project in November 2008. 109. The committee advertised the inquiry and called for submissions in ‘The Courier- 118. The committee wrote to various interested Mail’ and ‘The ’ on parties and organisations providing an 19 April 2008. At the same time it also inquiry information paper and inviting them released an inquiry information paper and to make a submission by 30 January 2009. wrote to a variety of interested persons and The committee received four submissions in organisations advising them of the inquiry response. and inviting them to make a submission. 119. On 13 February 2009, the committee 110. The committee received six submissions in undertook a site inspection of the existing response to its information paper. Supreme and District Courts and the new courts complex site. The committee held a 111. The committee held a public hearing and public hearing the same day. inspected the desalination plant on 29 August 2008. 120. This inquiry will be completed in the next reporting period.

Page 11 Australasian Council of Public Other Committee Travel Accounts Committees (ACPAC) 126. The Public Works Committee (52 nd 121. The Australasian Council of Public Parliament) undertook a study tour to Accounts Committees (ACPAC) comprises Adelaide and Hobart between 4 and Public Accounts Committees from other 7 August 2008 to examine environmentally Australian States and Territories, Papua sustainable development in buildings, water New Guinea, Fiji, New Zealand and the supply and desalination. Solomon Islands. The council meets annually to present discussion papers and Other Committee Activities exchange views on issues applicable to public sector accountability and the function 127. During the year the committee undertook and role of public accounts committees. the following activities:

122. The New Zealand Finance and Expenditure  Mr Wendt made a presentation to QAO Committee hosted this year’s conference staff on the role of the committee at a which was held in Wellington, New Parliamentary Education seminar held at Zealand, from 15 to 17 April 2009. Parliament House in May 2009.

123. The theme of the conference was ‘Sharing Meeting Attendance Record lessons – seeking improved accountability – facing new challenges’. Delegates at the Public Accounts Committee (52 nd Parliament) conference included ACPAC member committees, Public Accounts Committees 1 July 2008 – 23 February 2009 (or their equivalent) from Timor-Leste, the United Kingdom, Kiribati, Namibia and Vanuatu and Auditors-General from Australia, New Zealand, Solomon Islands, the United Kingdom, Kiribati, South Africa,

Vanuatu and Indonesia. Meeting Date Hayward Johnson English Gibson Langbroek Lawlor Grace* 26-08-08      124. As the Queensland Parliament was dissolved in February for the election, the 09-09-08        committee’s Research Director represented 07-10-08     the committee at the conference. 21-10-08       National Conference of Public Works 11-11-08        and Environment Committees 25-11-08       125. The National Conference of Public Works 02-12-08        and Environment Committees is held annually. The New South Wales Public 10-02-09        Works Committee hosted the last conference in Sydney from 23 to 25 July 2008. The Chair, Deputy Chair and Research Director of the Public Works Committee (52 nd Parliament) represented the committee at this conference.

Page 12 Public Works Committee (52 nd Parliament) Public Accounts and Public Works Committee (53 rd Parliament) 1 July 2008 – 23 February 2009 23 April 2009 – 28 May 2009 Meeting Date Stone Lingard Copeland Hopper O’Brien Wendt Weightman Meeting Date Wendt Rickuss Crandon Farmer Hopper O’Neill Smith 26-08-08        01-06-09        29-08-08       15-06-09        29-08-08       07-10-08        Committee Secretariat 31-10-08       128. A full time Research Director and Senior 31-10-08        Research Officer and a part time Executive Assistant support the committee in its 25-11-08        activities. 02-12-08        13-02-09       Committee Expenditure 13-02-09       129. The committee is funded from the appropriation made to the Legislative 13-02-09       Assembly. Public Accounts Committee (53 rd Parliament) 130. Details of the Public Accounts Committee 23 April 2009 – 28 May 2009 expenditure for the period 1 July 2008 to 30 June 2009 are set out in the following table:

Detail $

Meeting Date Wendt Rickuss Crandon Farmer Hopper O’Neill Smith Staff salaries and related 176,265 expenses 19-05-09        Employer superannuation 22,350 Public Works Committee (53 rd Parliament) contributions Salary related taxes 13,685 23 April 2009 – 28 May 2009 Travel expenses 3,775 Advertising, printing and 1,691 stationery Meeting/Hearing expenses 1,838 Telecommunication costs 1,231

Meeting Date Wendt Rickuss Crandon Farmer Hopper O’Neill Smith Subscriptions and publications 1,220

19-05-09        Total Expenditure 222,055

131. The committee's budget allocation for 2008-09 was $300,959.

Page 13 132. Details of the Public Works Committee 135. The Public Accounts and Public Works expenditure for the period 1 July 2008 to Committee's budget allocation was 30 June 2009 are set out in the following contained within that provided for the table: previous committees upon its merger.

Detail $ 136. The Public Accounts and Public Works Committee budget allocation cannot be Staff salaries and related 151,313 derived by adding the budgets allocations of expenses both the previous Public Accounts Employer superannuation 19,699 Committee and Public Works Committee as contributions those committees operated as two separate Salary related taxes 12,444 committees with the respective staffing Travel expenses 37,230 complements and expenses. Advertising, printing and 2,798 stationery 137. The Public Accounts and Public Works Meeting/Hearing expenses 387 Committee operates as a single committee Telecommunication costs 2,496 with the associated staffing complement and expenses. Subscriptions and publications 866 Total Expenditure 227,233 138. A separate budget allocation will be provided for the 2009-10 financial year.

133. The committee's budget allocation for Whistleblowers Protection Act 2008-09 was $290,792. 139. Section 30 of the Whistleblowers Protection 134. Details of Public Accounts and Public Act 1994 requires parliamentary committees Works Committee expenditure for the to report on public interest disclosures made period 1 July 2008 to 30 June 2009 are set to them. There were no disclosures made to out in the following table: the committee during the reporting period.

Detail $

Staff salaries and related 28,894 expenses Employer superannuation 3,684 contributions Salary related taxes 2,748 Travel expenses 446

Advertising, printing and 88 stationery Wayne Wendt MP Meeting/Hearing expenses 378 Chair Telecommunication costs 225 August 2009 Subscriptions and publications 0 Total Expenditure 36,463

Page 14 Contacting the committee

Copies of committee publications are available on the Internet via the Queensland Parliament’s home page at: www.parliament.qld.gov.au

For further information please contact the committee secretariat: Public Accounts and Public Works Committee Parliament House George Street Brisbane Q 4000

Telephone: 07 3406 7576 Fax: 07 3406 7500 Email: [email protected]

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