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Improving Commonwealth procurement

THE Joint Committee of Public Accounts and Audit has tabled its report on Commonwealth Procurement based on the following Auditor-General’s reports:

  • No. 1 (2016-17), Procurement of the International Centre for Complex Project Management to Assist on the OneSKY Australia Program;
  • No. 13 (2016-17), Delivery of Health Services in Onshore Immigration Detention; and
  • No. 16 (2016-17), Offshore Processing Centres in Nauru and Papua New Guinea: Procurement of Garrison Support and Welfare Services.

Procurement is core business for Commonwealth agencies and achieving value for money is expected to be a central consideration.

Committee Chair Senator Dean Smith said the Committee had made a number of recommendations in its report to improve procurement management by the agencies under review.

“Effective Commonwealth procurement will continue to be a strong focus of the Joint Committee for Public Accounts and Audit in its role in scrutinising the governance, performance and accountability of Commonwealth agencies,” Senator Smith said.

The report makes nine recommendations, including that:

  • Airservices Australia provide the Committee with a post-implementation progress report for each of the audit recommendations; report back on a number of matters to demonstrate its improved management of probity in procurement; and report back on implementation of the audit findings of Audit Report No. 46, Conduct of the OneSKY Tender;
  • the Department of the Finance consolidate procurement guidance as it relates to corporate Commonwealth entities, to ensure such entities more strictly apply the Commonwealth Procurement Rules;
  • the Australian National Audit Office consider a third-stage audit into the conduct of the OneSKY tender by Airservices and any associated matters; and a performance audit of the next Department of Immigration and Border Protection procurement of garrison support and welfare services; and
  • the Department of Immigration and Border Protection provide the Committee with a post-implementation progress report for each of the audit recommendations in Audit Report No. 16 (2016-17); and report back on its implementation of appropriate performance monitoring of the contractor for the provision of health services in onshore immigration detention and implementation of a risk-based remediation plan.

 Interested members of the public may wish to track the Committee via the website. 

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Hearings on several public works projects

THE Parliamentary Standing Committee on Public Works will hold public hearings in Canberra tomorrow to examine three proposed projects:

  • Construction of the Treloar E Large Technology Objects Store to accommodate the planned acquisition of large technology objects in Mitchell, ACT.  The estimated cost of the project is $16.1 million (excluding GST).
  • Delivery of a Satellite Ground Station to provide anchoring of Wideband Global Satellites. This is part of a multi-phase project to provide the requisite range of strategic and tactical satellite communications capabilities. The estimated cost of the project is $33.9 million (excluding GST).
  • Building refresh and fit-out of Discovery House in Woden, ACT.  The estimated cost of the project is $39.7 million (excluding GST).

 

Public hearing details: 9:15 am to 2:30 pm, Friday, 15 September 2017, Committee Room 1R3, Parliament House, Canberra 

9.15 am – 10.00am:     Australian War Memorial
11.15am – 12.00pm:     Department of Defence
1.15pm – 2.00pm:        IP Australia
2:30pm:                          Close

The hearing will be broadcast live at aph.gov.au/live.

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New financial dispute resolution a landmark initiative

THE Australian Small Business and Family Enterprise Ombudsman (ASBFEO) has welcomed the Government’s landmark move to establish a new one-stop-shop to resolve small business disputes with banks – the Australian Financial Complaints Authority (AFCA).

Ombudsman Kate Carnell said the initiative addressed a key recommendation from ASBFEO’s Small Business Loans Inquiry and would significantly improve access to justice, especially for capital-intensive enterprises.

AFCA will consolidate the existing Financial Ombudsman Service (FOS), the Credit and Investments Ombudsman (CIO) and the Superannuation Complaints Tribunal (SCT). 

A small business will be able to seek resolution of a dispute where the credit facility is up to $5 million and potentially receive compensation up to $1 million.

Ms Carnell said the FOS was currently limited to considering disputes of not more than $500,000 arising from a credit facility no higher than $2 million.

“This excludes many small businesses,” she said.

“Small businesses do not have the money or time to challenge banks through the court system and there is a significant power imbalance between banks and small businesses.

“Small businesses do not have the financial capacity to hire expert legal advice to help them overcome this disadvantage.”

The new one-stop-shop will be able to make binding determinations.

Ms Carnell said the higher compensation cap should incentivise banks to resolve disputes through internal processes before progressing to the AFCA.

“The Government’s proposed model will provide a genuine alternate dispute resolution option in a forum where the needs of small business are understood,” she said.

“It will save time and money by significantly reducing the need for litigation.”

Ms Carnell also welcomed the proposed transitional arrangements and the Government’s commitment to consult on AFCA’s terms of reference.

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Orange to host first regional public hearing

ORANGE will host the first regional public hearing of the Select Committee on Regional Development and Decentralisation. 

The Chair of the Committee, Dr John McVeigh MP said, “the Committee is looking forward to kicking off our public hearing program in Orange.  This will be the first of a series of public hearings we will hold around the country.  The Committee wants to engage with regional and rural towns about the issues affecting them, and to learn more about best practice for the development of sustainable and engaged regional communities.”

“Orange is a good example of a regional town with a mix of public and private decentralisation, as well as regional development initiatives driven by the local community.  ” Dr McVeigh said. 

 

Public hearing details: 10:00 am to 2:30 pm, Monday, 18 September, Moresby Room, Ex-Services’ Club, 231-243 Anson St, Orange, NSW 

10.00 am: Orange City Council
10.45 am: Regional Development Australia Central West
11.30 am: Centre for Economic and Regional Development
12.15 pm: Lunch
1.00 pm: NSW Department of Primary Industries and NSW Rural Assistance Authority
1.45 pm: Orange Business Chamber
2.30 pm: Close

The hearing will be broadcast live at aph.gov.au/live.

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Australian Energy Market Operator to meet committee

THE House Environment and Energy Committee will hear from the Australian Energy Market Operator (AEMO) at a public hearing tomorrow for the inquiry into modernising Australia’s electricity grid.

The Chair of the Committee, Andrew Broad MP, said the Committee was looking forward to hearing from AEMO about measures to ensure the security and reliability of the electricity system, both in the short term and as the system continues to evolve.

“As the market operator, AEMO is on the front line of the changes underway in the electricity grid. The Committee is keen to hear from AEMO what measures it thinks will encourage more dispatchable capability on the grid,” Mr Broad said.

The Committee will also hear from the Energy Efficiency Council, which represents stakeholders with experience in energy efficiency and related issues, such as demand management.

The Deputy Chair of the Committee, Mr Pat Conroy MP, said the Committee was looking forward to hearing about the role of demand management in achieving a more reliable and affordable electricity system.

“Demand management is an important consideration for the Committee as it examines how to ensure a responsive modern grid,” Mr Conroy said.

As part of the inquiry, the Committee is encouraging members of the community to share their views on the electricity system via an online questionnaire.

Further information about the inquiry, including submissions from organisations appearing at the hearings, is available on the inquiry website.

 

Public hearing details: 9:45 am to 11:15 am, Thursday, 14 September, Parliament House, Canberra

The hearing will be broadcast live at aph.gov.au/live

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