Page 2031 - Week 07 - Thursday, 4 June 2015
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video
It also provides mechanisms to redirect funding in an efficient and timely manner that both supports the needs of governments and recognises the role of the Legislative Assembly by allowing the Assembly to debate significant transfers if it so chooses. In addition,, the bill provides a funding mechanism for expenditure pending the passing of a supplementary appropriation bill. This allows the government to be more responsive to emerging territory needs while providing greater visibility and scrutiny via a supplementary appropriation process where feasible.
The bill reduces red tape by streamlining provisions of the act to make it more administratively efficient and reduces ambiguity by making existing provisions simpler and clearer. For example, it streamlines appropriations associated with commonwealth grants so that instruments actioned at the end of the financial year can be actioned in a single instrument rather than requiring two instruments.
The bill recognises the need for directors-general to enter into multiyear contracts. However, the power to enter into multiyear arrangements has been provided in a prudent, risk-managed manner by creating the necessary framework within which this power can be exercised. This has been achieved by broadening the responsibilities of directors-general to include the requirement that directors-general must manage their directorates in a way that promotes the financial sustainability of their directorate and take into account the effect of those decisions on public resources generally.
The bill replaces the existing disjointed presentation of individual appropriation instruments with an administratively more integrated, coordinated and transparent process of scheduled quarterly reporting.
The additional flexibility provided in the bill is not at the expense of transparency or accountability by the government. In fact, this bill improves transparency and accountability. The bill legislates a number of reporting items that the government currently provides on a voluntary basis, thus removing the government’s existing discretion in providing this information. These include the government’s spending intentions in the budget papers and periodic capital works reporting.
The bill has staggered commencement provisions, as some provisions can commence on the first day of the next quarter after notification while others must align with the 2016-17 budget and the commencement of the next financial year on 1 July 2016.
Responsible financial management is a critical role of the government and needs to be supported by an effective legislative framework. The amendments will make the FMA progressive, simpler and more efficient, to provide the government with the necessary framework and funding flexibility to quickly respond to emerging priorities and community expectations in this challenging period and into the future.
The government considers that the bill strikes the right balance between allowing the necessary flexibility to government, respecting the role of the Assembly in passing appropriation bills and providing transparency and accountability to both the Assembly and the community. I commend this bill to the Assembly.
Debate (on motion by Mr Smyth) adjourned to the next sitting.
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video