CHAPTER 1: Conduct of the Inquiry

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CHAPTER 1: Conduct of the Inquiry

Background

1.1 In March 1996 the Government established a National Commission of Audit, chaired by Mr Robert Officer of the Melbourne Business School. The terms of reference, among other things, required the Commission to propose the means by which the Commonwealth might meet the Government's financial targets. The Commission presented its report in June 1996. [1]

1.2 The Commission noted that funding for the five parliamentary departments represented $0.6 million in support costs for every parliamentarian, excluding salaries, allowances and entitlements. It found that there was significant inefficient duplication in corporate services among the departments. [2] The Committee notes that the parliamentary departments were not consulted in the course of the Audit Commission's inquiry.

1.3 The Commission suggested that:

  • the corporate functions of the five departments be combined into a single new department;
  • if required, there be an Office of Senate and an Office of the House of Representatives within that department;
  • the reporting service, library and other functions such as printing could be contracted out in the same way as the parliamentary catering service. [3]

1.4 In June 1996 Speaker Halverson and Senator Reid sought the views of the heads of the parliamentary departments on a possible rationalisation of services. The heads responded on 20 August 1996. There was support for a two department model and some support for a three department model.

1.5 The Presiding Officers commissioned Mr Noel Tanzer AC to review the submissions of the heads of the departments. After receiving Mr Tanzer's report, the Presiding Officers advised their respective Houses on 5 March 1997 that they proposed to amalgamate the five parliamentary departments and implement a management structure based on the two Chamber departments.

1.6 Following their statement, the Presiding Officers asked the heads of the parliamentary departments for advice on the most effective and efficient means to implement the new management structure; to identify the legal implications and legislative process, and statutory and financial obligations of any changes; to examine any other matters considered relevant; and to provide an implementation plan for the transition to the proposed new structure by 18 March.

1.7 The implementation plan entitled Managing the Parliament - The Way Ahead, was prepared for the departmental heads by a Working Group comprising senior corporate management officers from the five parliamentary departments. The report was presented to the Presiding Officers on 17 March and tabled in both Houses on 24 March.

1.8 On 24 March 1997 the President assured the Senate that the proposed changes outlined in Managing the Parliament - The Way Ahead could not proceed without being considered by the Senate. The President noted that this Committee would be examining the matter and would act as a safeguard for the Senate's interests. Further, the President invited written comments by 14 April from members, senators, staff, staff associations and other interested people on proposals in the Managing the Parliament - The Way Ahead . [4]

Terms of Reference

1.9 Standing Order 19 (2) (b) in part requires the Appropriations and Staffing Committee to inquire into 'proposals to vary the staff structure of the Senate, and staffing and recruitment policies'.

1.10 A procedural order of the Senate of continuing effect agreed to on 3 June 1987 states that:

    'The Senate declares that no changes in the structure or responsibilities of the Parliamentary Departments should be made until -

    (a) particulars of proposed changes have been provided to all Senators;

    (b) the Standing Committee on Appropriations and Staffing has examined the proposed changes and reported to the Senate; and

    (c) the Senate has approved of the changes.'

1.11 On 26 March 1997, the Senate referred the following matter to the Committee:

    'That -

    (1) The Standing Committee on Appropriations and Staffing, in its examination of the report Managing the Parliament: The Way Ahead, conduct a public inquiry into the report, including:

      (a) appropriate advertising of the inquiry;

      (b) calling for submissions;

      (c) the holding of public hearings; and

      (d) the presentation of a comprehensive report by 26 June 1997.

    (2) The committee be provided with all necessary staff, facilities and resources and be empowered to appoint persons with specialist knowledge for the purposes of the inquiry, with the approval of the President of the Senate'.

1.12 The Committee advertised in the Canberra Times on 5 April inviting interested persons and organisations to make written submissions to the inquiry by 2 May 1997. The Committee received 15 submissions. A list of the submissions appears at Appendix 1.

1.13 The Committee held a public hearing in Canberra on Friday, 30 May 1997. A list of witnesses who appeared at the hearing is at Appendix 2.

Scope of inquiry

1.14 Complying with its terms of reference, the Committee's inquiry was confined to consideration of the proposed amalgamation of the parliamentary departments contained in Managing the Parliament - The Way Ahead. The Committee assessed the report against the objectives of significant financial savings and improved service delivery standards.

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Footnotes

[1] National Commission of Audit, Report to the Commonwealth Government, June 1996, pp. 1-3.

[2] National Commission of Audit, Report to the Commonwealth Government, June 1996, p. 110.

[3] National Commission of Audit, Report to the Commonwealth Government, June 1996, p. 110.

[4] Senate Hansard, 24 March 1997, p. 2011.