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 Parliament of Queensland 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.