EXPLANATORY STATEMENT
Statutory Rules 1988 No. 211
Public Works Committee Regulations (Amendment)
(Issued under the authority of the Minister of State for Administrative Services)
The Public Works Commitee Act 1969 (the Act) establishes the Public Works Committee to inquire into and report on public works referred to it by the Parliament. A public work is a work that is proposed to be carried out by or for the Commonwealth and which moneys are appropriated by the Parliament.
Subsection 6A(3) of the Act provides that where the Governor-General is satisfied that an authority of the Commonwealth is engaging in trading or other activities, or is providing services, in competition with other bodies, the Governor-General may make regulations declaring that this Act does not apply to that Authority.
As part of its 1988 May Economic Statement, the Government announced a series of reforms of the Transport and Communications Government Business Enterprises (GBEs). These reforms are aimed at improving the efficiency and commercial competitiveness of GBEs within the framework that concentrates on strategic planning, setting of performance targets, enhanced accountability and the achievement of results. Within this framework, the Government has decided to remove a large number of central controls over the day-to-day management of GBEs. Consequently, the Australian Postal Commission, Aussat Pty Ltd, Overseas Telecommunications Commission and Australian Telecommunications Commission will be exempt from compliance with the Act.
The proposed amendments to the Public Works Committee Regulation will exempt the Australian Postal Commission, Aussat Pty Ltd, Overseas Telecommunications Commission and Australian Telecommunications Commission from Public Works Committee scrutiny.
Overview
The Public Works Committee Act 1969 was enacted to establish the Public Works Committee, tasked with the responsibility of inquiring into and reporting on public works referred to it by the Parliament. A public work, as defined by the Act, pertains to any work proposed to be carried out by or for the Commonwealth, for which funds have been appropriated by the Parliament. The Act was introduced to address the need for scrutiny and oversight over significant public works projects, ensuring accountability and transparency in the allocation and utilisation of public funds. The Parliament, as the enacting body, aimed to establish a structured process for examining and reporting on such works to maintain effective governance. The proposed amendment to the Public Works Committee Regulations in 1988 was introduced as part of a broader reform initiative targeting Government Business Enterprises (GBEs) in the transport and communications sectors. The reform was designed to enhance the efficiency and commercial competitiveness of these enterprises, focusing on strategic planning, performance targets, and accountability. Consequently, the Australian Postal Commission, Aussat Pty Ltd, Overseas Telecommunications Commission, and Australian Telecommunications Commission were exempted from Public Works Committee scrutiny and the broader regulatory framework of the Act, in line with the policy objective of reducing central controls over their day-to-day management.
Scope and Application
The Public Works Committee Act 1969 sets up the Public Works Committee with the primary function of investigating and reporting on public works referred to it by the Parliament, specifically those works for which funds have been appropriated by the Parliament and are proposed to be carried out by or for the Commonwealth. The Act's jurisdiction and scope are inherently federal, focusing on public works of national significance. However, the Act allows for certain exemptions through regulations made under its authority. For instance, subsection 6A(3) enables the Governor-General to exempt authorities of the Commonwealth from the Act's application if they are engaging in trading or other activities in competition with other bodies. In line with this provision, the Public Works Committee Regulations (Amendment) 1988 exempts specific entities from the scrutiny of the Public Works Committee. These include the Australian Postal Commission, Aussat Pty Ltd, Overseas Telecommunications Commission, and Australian Telecommunications Commission, aligning with the Government's reforms aimed at improving the efficiency and commercial competitiveness of these Government Business Enterprises.
Key Provisions
The Public Works Committee Act 1969, as amended by Statutory Rules 1988 No. 211, introduces provisions that significantly alter the oversight responsibilities of the Public Works Committee (subsection 6A(3)). These changes are primarily concerned with the exemption of certain Commonwealth authorities from the Act's requirements. Specifically, the Governor-General has the authority to exempt authorities engaged in competitive activities from the Public Works Committee’s scrutiny if it is deemed that such involvement could lead to competition with other bodies. This amendment reflects the Government's policy to enhance the efficiency and commercial competitiveness of Government Business Enterprises (GBEs) in the transport and communications sectors, as outlined in the 1988 May Economic Statement. The Australian Postal Commission, Aussat Pty Ltd, Overseas Telecommunications Commission, and Australian Telecommunications Commission are identified as entities to be exempt from this oversight, aligning with the broader strategy to streamline operations and reduce central controls over their day-to-day management.
These amendments impose specific obligations on the entities identified for exemption. They are no longer subject to the inquiries and reports that the Public Works Committee would typically conduct on public works related to their operations. Instead, these entities are expected to manage their activities and ensure compliance with other relevant legislation and regulations that govern their respective sectors. The exemption is intended to provide these entities with greater autonomy and flexibility to operate more efficiently in a competitive environment. However, it also places the responsibility on these organisations to demonstrate that their operations align with government objectives and performance targets, ensuring that the removal of oversight does not compromise public interest or strategic goals.
The implications of non-compliance or failure to adhere to the reformed framework are significant. While the specific offences, penalties, or consequences for breaching the amended regulations are not detailed within the explanatory statement, it can be inferred that entities subject to these changes are expected to operate within the parameters of their exemption and broader legislative frameworks. Any deviation from these guidelines could potentially result in scrutiny or intervention from other regulatory bodies or government departments. The absence of specific penalties in the explanatory statement suggests that the primary recourse for non-compliance would likely involve administrative or judicial review under other applicable laws, with potential consequences including financial penalties, operational restrictions, or even legislative action to reinstate oversight where deemed necessary.
Overall, the key provisions of the Public Works Committee Act 1969, as amended, aim to balance the need for streamlined management of certain government entities with the imperative to maintain accountability and efficiency. By exempting specified authorities from Public Works Committee scrutiny, the legislation seeks to foster a more competitive and commercially viable environment for these entities, while ensuring that their operations remain aligned with broader governmental objectives and performance standards.