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Audit Committee public hearing: Defence Major Projects Report – exploring ‘military off-the-shelf’ and scope changes

THE Joint Committee of Public Accounts and Audit (JCPAA) will be holding a second public hearing on Friday, June 28, for its inquiry into the 2022–23 Defence Major Projects Report (MPR).

“The MPR is an important accountability mechanism and the discipline of the MPR over many years has had a positive impact on Defence’s internal management of major projects,” Committee Chair Julian Hill MP said.

“More evidence is needed regarding how Defence assesses military off-the-shelf options during procurement processes. For decades, previous reviews of Defence procurement have insisted that a military off-the-shelf option must be considered and compared to ‘bespoke’ options in new capability procurement.

“The committee also wants to understand how changes to scope are decided after a project is underway as variations to scope can be a key reason for delays and cost escalations. How are capability and delivery managers engaged in the context of scope changes and who ultimately decides? It’s important that industry realities and cost and schedule impacts are fully considered when a decision is made to change the scope of a new capability after initial procurement.”

The details are as follows:

Date: Friday, June 28, 2024

Time: 3pm – 5pm (AEST)

Venue: Committee Room 2R1, Parliament House         

The hearing will be broadcast live and will be accessible from the Parliament House website.

Details on the inquiry—including the terms of reference and submissions received—are available on the Committee website.

 

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Charging forward with Australia’s transition to electric vehicles

THE House of Representatives Standing Committee on Climate Change, Energy, Environment and Water will hold its first public hearing in Canberra tomorrow for its inquiry into the transition to electric vehicles (EVs).

Committee Chair, Tony Zappia MP, said, "The committee is looking forward to hearing evidence from the Department of Climate Change, Energy, the Environment and Water (DCCEEW) alongside the Department of Infrastructure, Transport, Regional Development, Communications and the Arts (DITRDCA) to find out what work has been done to date and what the future needs might be to support Australia’s transition to electric vehicles.

"The committee will also hear from peak bodies and associations that will provide a customer and industry focus on what Australia’s future needs might be to support the country through the transition to electric vehicles. This is the first of a series of public hearings to be held across Australia," Mr Zappia said.

The program for Friday’s public hearing can be found here.

The committee will conduct further public hearings between July to September 2024. Further information about the inquiry, including the terms of reference, and submissions is available on the committee’s website.

Public hearing details

Date: 28 June 2024
Time: 8.45am – 12.40pm
Location: Committee Room 2R2, Parliament House

Witnesses: Department of Climate Change, Energy, the Environment and Water (DCCEEW), Department of Infrastructure, Transport, Regional Development, Communications and the Arts (DITRDCA), Australia Electric Vehicle Association, National Road Transport Association, Australian Automotive Aftermarket Association, Electric Vehicle Council.

 

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The never-ending quest for probity and ethics in the Australian public sector

THE Joint Committee of Public Accounts and Audit has tabled its report into probity and ethics in the Australian public sector, finding the sector too often fails to comply with both the intent and the requirements of legal and regulatory frameworks.

“Complying with the letter of the law while ignoring the intent does not cut it,” Committee Chair, Julian Hill MP said.

“Too often the public sector is falling short of the high standards of professionalism required of it. Risk tolerance for non-compliance is unacceptably high and ‘getting things done’, even if it involves cutting corners, has sometimes become more important than complying with the law.

“In particular, it was concerning to hear during the inquiry that even when officials were found acting contrary to finance law, multiple witnesses and entities referred to a ‘lack of malintent’, to having ‘acted in good faith’, and ‘delivering on decisions of government’. This is plainly and unambiguously wrong.

“Officials in the Department of Health even received corporate ‘congestion busting’ awards for former Minister Greg Hunt’s hospital grants project which breached finance laws. Public money was paid without any apparent legislative authority and in blatant defiance of legal advice.

“Frankly, the committee wishes that breaking finance law was indeed innovative and a new situation, but unfortunately the evidence in this and numerous other inquiries make clear it’s not," Mr Hill said.

“The committee has observed over many years, including through this inquiry, a pattern of persistent resistance to accountability across the public sector. Agency heads do not consistently have frameworks in place to be reasonably confident their officers are acting according to the letter and the intent of the law, and thus demonstrating probity.”

To foster an Australian Public Sector that acts with probity and integrity, the committee concluded that a focus on three critical and interdependent aspects of the system is necessary: frameworks, culture, and accountability.

“The key, however, to ensuring the public sector acts with probity and integrity is overwhelmingly not the rules per se—it is ethical leadership: the ‘golden thread’ that binds and animates the system in a positive direction. Ethical leadership must be demonstrated at all levels, especially by accountable authorities and senior officers,” Mr Hill said.

The Committee made 11 recommendations, including recommendations that seek to embed assurances with regard to probity and ethics in public sector accountability systems and mechanisms.

Under the recommendations, the Australian Public Service Commission (APSC) is to develop guidance with a definition of culture and metrics to build, measure and assess organisational culture as it applies to probity. Further, there should be a new requirement for all entities to develop and maintain an overarching Integrity Framework.

The report can be downloaded from the inquiry website.

 

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Treaties Committee recommends ratification of Nairobi Convention

THE Joint Standing Committee on Treaties (JSCOT) has tabled a report recommending the ratification of the Nairobi International Convention on the Removal of Wrecks (Nairobi Convention).

Committee Chair Josh Wilson MP said, “Australia is a country with a significant coastline and shipping industry. Joining the Nairobi Convention would provide economic, environmental, and human safety benefits for Australia. Through this Convention, Australia would be able to remove or have removed wrecks in its Exclusive Economic Zone. This includes objects that are lost at sea that pose a danger to navigation.”

“Ratifying this treaty is important because of the increasing risk of wreck incidents," Mr Wilson said. "This is due to the rise in e-commerce and the use of bigger container ships that travel more frequently at full capacity which face greater pressures to quickly load and unload.”

As part of the Convention, registered ship owners of States Parties are held financially liable for any wrecks they create and those over 300 gross tonnage must have insurance or other financial security to cover the cost of removing the wrecks.

As part of its inquiry, the committee held a public hearing and addressed key issues such as the economic benefits of the Convention, underwater cultural heritage, the application of the Convention to the territorial sea, shifting wrecks, insurance issues and the offshore oil and gas industry.  

The committee supported ratification and recommended that binding treaty action be taken for this treaty as well as the following minor treaty action which is also contained in the report:

  • Amendment to Appendices I and II of the Convention on the Conservation of Migratory Species of Wild Animals.

The report can be found on the committee website, along with further information on the inquiry.

For more information about this committee, visit its website.

 

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Committee satisfied with operation of intelligence agencies in a complex, challenging and changing security environment

THE Parliamentary Joint Committee on Intelligence and Security (PJCIS) has tabled its annual review of six Australian intelligence agencies.

The review, covering the 2021-2022 period, found that amidst a changing strategic environment where espionage and foreign interference has overtaken terrorism as Australia’s principal security concern, Australia’s intelligence agencies largely worked in an effective, and increasingly collaborative, manner.

"The committee found that, on the whole, agencies performed their roles well, particularly considering the challenging operational environment faced by agencies over the reporting period," Committee Chair, Peter Khalil MP said.

The Committee made one recommendation. Noting the rapid pace and ambition of elements of the Australian Signals Directorate’s (ASD) REDSPICE program, the committee recommended that ASD provide the committee with an additional update six months after each ASD submission to the review of administration and expenditure, for the duration of the REDSPICE program.

"The work of Australia’s intelligence agencies is becoming increasingly complex and challenging," Mr Khalil said. "ASD’s defence of Australia in the cyber realm will be significantly boosted by the REDSPICE program, which is intended to deliver forward-looking capabilities essential to maintaining Australia's strategic advantage and capability edge over the coming decade and beyond.

‘It is important, given the significant investment involved, that the committee be kept up to date with the maturity of the REDSPICE program," Mr Khalil said.

The committee’s report can be found via the committee’s webpage: Parliamentary Joint Committee on Intelligence and Security – Parliament of Australia (aph.gov.au)

 

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