Page 2059 - Week 07 - Thursday, 16 June 1994
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The New Zealand House of Representatives Finance and Expenditure Committee, which is analogous to the ACT Public Accounts Committee, in its 1991 report stated that the purpose of the combined government financial statements is to bring together the results of all the individual subentities so as to present a combined picture of the whole Government as a single economic entity. The combined statements showed the substance of the government's net worth and performance, seeing past the legal or administrative form. The Finance and Expenditure Committee went on to explain that the benefits of combined government financial statements are to condense a large mass of data into a single set of meaningful and useful information accessible to the members of parliament, the electorate, the media and financial markets; to provide a picture of the overall financial position or net worth of the government at particular times; to enable comparisons to be made of changes in the government's net worth over time; and to allow assessments to be made of the government's performance in its stewardship of the resources available to it.
The committee's conclusion was that the adoption of accrual accounting by the New Zealand Government has been accompanied by significant restructuring of the public sector, in many cases with restructuring preceding the changes in financial accountability. It simply was not just the introduction of accrual accounting. In the time available the committee was not able to fully consider the extent and benefits of this restructuring or of cultural change within the New Zealand public sector as a result of the restructuring of departments, but our discussions indicated that there was broad agreement that the changes had been necessary and, at least from the point of view of administrative efficiency and accountability in the provision of services, successful. The committee noted, however, some concerns that public administration has become fragmented and that because the focus of financial accountability has shifted to government agencies ministerial responsibility in relation to the activities of these bodies was less identifiable. Maybe that would appeal to our Government. The question of accountability of Ministers and chief executives of government bodies continues to be debated in New Zealand.
The committee gratefully acknowledges the assistance provided by officers of the New Zealand Parliament in arranging a program of meetings and contacts at the highest levels of government, business and social welfare. It has been of considerable value to the committee in developing a position on accrual accounting as an integral component in change aimed at enhancing accounting, reporting and accountability. The committee also expresses appreciation to the many senior executives of the bodies who so generously afforded the committee their time, their views and their expertise. Madam Speaker, the committee will report on these matters in more detail at a later date. Madam Speaker, I have tabled the statement and I move:
That the Assembly takes note of the paper.
Question resolved in the affirmative.
Sitting suspended from 12.38 to 2.30 pm
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