EXHIBIT (f)(v)
Queensland Government Response to the Independent Commission of Audit Final Report Entitled
“A Plan – Better Services for Queenslanders”
A Plan—Better Services for Queenslanders
Queensland Government Response to the Independent Commission of Audit Final Report April 2013
www.qld.gov.au/betterservices
Great state. Great opportunity.
APlan:BetterServicesforQueenslanders
QueenslandGovernmentResponsetotheIndependentCommissionofAuditFinalReport
On 26 March 2012, as promised during the election, the Government established an Independent Commission of Audit (the Independent Commission) to provide advice on Queensland’s current and forecast financial position and recommend strategies to strengthen the economy, restore the State’s financial position and to ensure value for money in service delivery. The Terms of Reference were publicly released.
The Independent Commission’s Interim Report was released in June 2012, and focussed on the immediate fiscal repair task – that was, addressing the unsustainable gap between expenditure and revenue growth and the consequent rapid rise in State debt. The Government took steps to address these issues in the 2012-13 Budget.
The Independent Commission delivered its Final Report in February 2013. The Final Report is focussed on the role and operations of Government in a modern economy.
The Queensland Government’s overarching economic strategy is unashamedly pro-growth. A strong and vibrant economy is essential to improving the well-being of Queenslanders. Without economic growth, the State will not have the income to meet the service delivery aspirations of its citizens.
To rebuild revenues, the Government has already changed the economic focus of Queensland by concentrating its efforts on “supercharging” the real strengths of our state—the four pillars of tourism, construction, resources and agriculture.
From an economic perspective, the Report concludes that a key action a State Government can take to lift economic performance is to ensure that it is operating as efficiently as possible. Higher public sector productivity will reduce: (a) the level of taxes required to deliver a given range of services; (b) the cost of doing business for firms using those services; and (c) the relative size of the public sector, and therefore competition for scarce skilled labour and capital.
The Final Report makes recommendations on the sale of Government businesses.
However, the Final Report is about much more than the sale of Government businesses. Indeed, out of 155 recommendations, only 5 relate to the sale of Government businesses.
The Final Report is fundamentally about ways in which the quality and quantity of front-line services can be improved, including models that make better use of the skills, capacity and innovation of the private and ‘not for profit’ sectors.
It also makes recommendations on changes to the way the public service is structured, organised and managed to be more flexible, responsive and efficient in supporting service delivery in a modern 21st century economy.
The Queensland Government wants to be able to provide more services to Queenslanders and improve the quality of those services.
However, States face a growing demand for services and increased spending in an environment in which the revenue outlook is weak and the options available to the States are limited. As a society, we face difficult choices. Queensland cannot be a low tax State and at the same time succumb to pressure to lift spending to levels determined by Canberra—the maths doesn’t work.
The Queensland Government’s view is that the best way to expand and improve services is to fundamentally change the way in which its services are structured and managed.
Today in Queensland, there are Queenslanders who need services and are not receiving them because the way we deliver them has not changed for decades. There are public servants who want to do more for their fellow Queenslanders but haven’t been provided with the tools to help them to do it. There are
Queensland Government Response to the Independent Commission of Audit Final Report 1
private sector operators and non-Government organisations that have new ideas and ways of approaching problems that aren’t being heard. This has to change. The Government has to become the “enabler” not the “doer”.
The Government’s response to the Final Report is also about ensuring the Queensland public sector is the best public service in Australia, delivering services to all Queenslanders.
Government has accepted the overwhelming majority of the recommendations in the Final Report. In many cases, it is possible to identify examples which already put the Government on the path to implementation. In other cases, recommendations that imply major change represent what has been standard practice in some other States for many years.
Nonetheless, the implementation task will be considerable and will need to be staged. Some recommendations can be implemented quickly. Others will take several years or will be ongoing in nature.
Many of the recommendations relate to “contestability”. Contestability is not an outcome.
Contestability is a process where Government tests the market to ensure it is providing the public with the best possible solution at the best possible price.
The Government is determined to transition to the “enabler”. It does not always need to be the provider. In a modern Queensland, citizens care much less about who is the provider – they care about access, quality and timeliness of the services they receive. They care about real outcomes, not bureaucratic inputs.
Implementing these recommendations will require new skills and capabilities in parts of the public service. We are committed to helping our people develop those skills.
The Government response represents the most significant transformation of the public sector in
Queensland for four decades. It is a plan for better government services for Queenslanders by increasing productivity and enhancing service delivery.
The Independent Commission’s Final Report represents a significant and positive step towards the Government fulfilling the five pledges it made to the people of Queensland on entering office—grow a four-pillar economy, lower the cost of living, deliver better infrastructure, revitalise front-line services and restore accountability in Government.
This is a plan for Queensland’s future. It’s unashamedly about again making Queensland the best state in Australia. It’s about making this the best government in Australia: efficient, effective and totally committed to delivering for the people of Queensland.
It’s a plan to reinvigorate the state’s economy, making the most of our natural resources and the talents of our people while ensuring we protect essential services and those who need a helping hand. It’s about being up-front and honest about our vision. It’s about securing a bright future for our kids, and the generations to follow. It’s about making this a Great State, with Great Opportunity.
The Hon. Campbell Newman MP The Hon. Tim Nicholls MP Premier of Queensland Treasurer and Minister for Trade
2 | | Queensland Government Response to the Independent Commission of Audit Final Report |
Commission of Audit recommendation Queensland Government response
B1 GOC Model
1A single Shareholding Minister be appointed for all Not Accepted
Government Owned Corporations (GOCs). The The Government does not accept this recommendation
responsibility of the shareholding Minister would be as it considers that at this time the two shareholder
to act in the interests of the Queensland public, as model strikes the appropriate balance, but will
ultimate owners of the GOC assets, to protect and continue to monitor the model to ensure that it is
enhance shareholder value of GOC assets. efficient and cost effective. The Government
acknowledges that ongoing work is required to ensure
that Ministerial roles are clearly identified and
understood.
2 | | An Office of the Shareholding Minister be Not Accepted |
established to support the Minister discharging The Government does not accept this recommendation
shareholder responsibility on behalf of the in light of its position on Recommendation 1. However,
Queensland public. it is noted that the Commercial Monitoring function
within Queensland Treasury and Trade which
administers the Government Owned Corporations Act
1993 will continue to brief all shareholding Ministers on
GOC performance.
3 | | The Government Owned Corporations Act 1993 be Accepted |
amended to provide for a maximum term for the The Government accepts this recommendation as a
Chair and members of a Government Owned principle of good corporate governance.
Corporation board of no more than 10 years.
4 | | The shareholding Minister prepare a report to be Accepted |
included in annual budget documentation showing The Government accepts this recommendation and
all Community Service Obligations (CSOs) and other notes that the State Budget Papers already incorporate
non-commercial policy objectives that Government details of concessions provided across Government.
Owned Corporations are required to perform at the For the 2013-14 State Budget, work is underway to
direction of Government. The report would present identify and include details of all forms of support
the estimated cost of the CSO and non-commercial provided to different parts of the community through
policy directives and their impact on: The Budget; government owned corporation activities.
The financial performance of the GOCs (especially
dividend and tax equivalent payments).
5 | | The shareholding Minister identify Community Accepted |
Service Obligations or non commercial policy The Government accepts this recommendation where
objectives currently delivered through Government it can be demonstrated it is administratively efficient to
Owned Corporations, such as concessional prices, do so.
that could be converted to assistance payments paid
directly from the budget to target customers.
6 | | Governance arrangements for Government Owned Accepted |
Corporations (GOCs) be further reviewed to assess The Government accepts this recommendation and
their continuing relevance and applicability once any notes that Queensland Treasury and Trade has
Government decisions relating to the Commission’s commenced a review of the Government Owned
other recommendations on GOCs have been Corporations Act 1993 as part of a broader review of
implemented. the GOC model to identify the most appropriate
governance framework within which to manage the
GOC businesses.
Queensland Government Response to the Independent Commission of Audit Final Report 3
Commission of Audit recommendation Queensland Government response
B2 Energy
7 | | When market conditions are favourable, the For further consideration |
Government divest its electricity generation assets. The Government does not currently have a policy to
Factors which will impact the timing of divestment sell Government businesses, and remains fully
include the carbon tax, other carbon abatement committed to seeking a mandate from the Queensland
measures and generation capacity in the National people before divesting itself of any Government
Electricity Market. business. However, the Government believes such a
proposal is worthy of an open and transparent
community debate to establish its viability and to
inform stakeholders of the costs and benefits of
Government owning such businesses, noting these also
come with significant financial risks in the context of a
modern economy.
While divestment is an effective way of reducing
Queensland’s oppressive debt and restoring the State’s
financial strength and security, the Government will
undertake further detailed investigation of this
particular proposal to ensure that the debate is fully
informed before making any decision. The Government
also notes the findings of the Commission of Audit in
relation to the constraints imposed by Government
ownership of these businesses and in relation to any
timing of divestment.
Regardless of the outcome of these considerations, the
Government will ensure that the businesses are
running as efficiently and effectively as possible, and
will adopt a prudent approach in ensuring decisions are
not taken that could erode the value that could be
realised for the benefit of Queenslanders in the context
of any possible future sale.
8 | | Electricity distribution and transmission assets be Not Accepted |
divested at a time set to align with regulatory re-set The Government will not be divesting its electricity
periods and favourable market conditions. distribution and transmission businesses – namely,
Ergon, Energex and Powerlink—during its current term
of office and will not be seeking a mandate to do so at
the next election.
The Government does not currently have a policy to
sell Government businesses, and remains fully
committed to seeking a mandate from the Queensland
people before divesting itself of any Government
business.
However, the Government will investigate alternative
ways of funding the future expansion of infrastructure.
4 | | Queensland Government Response to the Independent Commission of Audit Final Report |
Commission of Audit recommendation Queensland Government response
9 Either separately or in conjunction with other For further consideration
electricity assets, residual retail electricity functions The Government does not currently have a policy to
be divested in order to maximise the value of the sell Government businesses, and remains fully
business for taxpayers. committed to seeking a mandate from the Queensland
people before divesting itself of any Government
business. However, the Government believes such a
proposal is worthy of an open and transparent
community debate to establish its viability and to
inform stakeholders of the costs and benefits of
Government owning such businesses, noting these also
come with significant financial risks in the context of a
modern economy.
While divestment is an effective way of reducing
Queensland’s oppressive debt and restoring the State’s
financial strength and security, the Government will
undertake further detailed investigation of this
particular proposal to ensure that the debate is fully
informed before making any decision. The Government
also notes the findings of the Commission of Audit in
relation to the constraints imposed by Government
ownership of these businesses and in relation to any
timing of divestment.
Regardless of the outcome of these considerations, the
Government will ensure that the businesses are
running as efficiently and effectively as possible, and
will adopt a prudent approach in ensuring decisions are
not taken that could erode the value that could be
realised for the benefit of Queenslanders in the context
of any possible future sale.
10 | | For the period that they remain in government Accepted |
ownership, the generation businesses be required to The Government accepts this recommendation and
achieve higher rates of return through increased notes the Shareholding Ministers wrote to both GOC
efficiencies, better capital management and generators in September 2012 outlining their
operational cost savings. expectation for financial and non-financial performance
in 2012-13 and beyond, including that the focus of
business strategy should be one of cost and
performance efficiencies. However, the Government
will carefully monitor the pursuit of these strategies to
ensure that improved commercial returns are not at
the expense of safe, reliable and secure power
generation.
11 | | The generation businesses divest themselves of non—Accepted |
core business (such as the coal export revenues of The Government accepts this recommendation and
Stanwell), where there are significant bring-forward notes that Shareholding Ministers have already
benefits for the State from doing so. requested the boards of both generator GOCs to
consider plans to divest any non-core business
arrangements. The Government will evaluate these
proposals based on their commercial merits and their
long-term value for Queensland taxpayers.
Queensland Government Response to the Independent Commission of Audit Final Report 5
Commission of Audit recommendation Queensland Government response
12 | | For the period that they remain in government Accepted in part |
ownership, electricity distribution and transmission The Government accepts this recommendation and
businesses be required to achieve higher rates of notes the Shareholding Ministers wrote to Energex,
return through increased efficiencies, better capital Ergon and Powerlink in September 2012 outlining their
management and operational cost savings. expectations that the businesses will be run in the most
cost-efficient manner possible, and that expenditure
will be controlled to minimise impact on prices,
reliability and standards. The Government has also
established the Independent Review Panel on Network
Costs to investigate and make recommendations on the
efficiency of current network capital and operational
expenditure within the GOC network businesses with a
focus on keeping consumer price rises to a minimum.
13 | | The electricity transmission and distribution Accepted |
businesses divest themselves of non-core business The Government accepts this recommendation and
(as with Powerlink’s recent disposal of Electranet), notes that Shareholding Ministers have already
where there are significant bring-forward benefits requested that the boards of GOCs consider plans to
for the State from doing so. divest any non-core business arrangements. For
example, Powerlink recently announced the sale of its
interest in South Australian transmission provider
Electranet. The Government will evaluate these
proposals based on their commercial merits and their
long-term value for taxpayers.
14 | | The uniform tariff policy and supporting CSO Accepted in principle |
arrangements be refined over time to target the The Government supports the targeting of CSO
most needy consumers, reduce costs and volatility, arrangements to those consumers most in need and
and support wider retail competition in Queensland, notes that it has commenced an initial body of work
for example, by the introduction of a tariff band. through an Interdepartmental Committee on Electricity
Sector Reform to bring recommendations to
Government. However, in this regard, the Government
will not be breaking its election commitment to
maintain uniform electricity tariffs.
B3 Public Transport
15 | | City passenger rail services and network Accepted |
infrastructure be opened up to contestability, like The Government accepts this recommendation for City
bus services, to allow different providers, including Passenger services and rail infrastructure and notes
private providers, to bid to operate services and that it is consistent with Government’s current
maintain below-rail assets in a particular franchised direction and will be considered as part of the ongoing
area under franchise and lease arrangements. reform activities in the Department of Transport and
Main Roads.
16 | | Competitive tendering be introduced for long Accepted |
distance and tourist passenger rail service contracts, The Government accepts this recommendation and
including : evaluating the number of routes serviced notes that the reform of long distance travel is
and frequencies, franchisees and franchise areas currently under investigation in the Department of
before initiating the tender; owning the rolling stock Transport and Main Roads. The Government remains
required to provide the services in a State committed to effective, efficient and affordable
Government entity, and lease this to the franchisee transport solutions for regional Queensland.
for the term of the contract.
17 | | Competitive tendering be introduced for bus service Accepted |
contracts throughout Queensland, including The Government accepts this recommendation and
evaluating the number of routes serviced and notes that the reform of bus service contracts has been
frequencies, franchisees and franchise areas before the subject of major investigation in the Department of
initiating the tender. Transport and Main Roads. The Government remains
committed to strong value-for-money outcomes for
Queensland taxpayers and the development of efficient
and affordable bus services.
6 | | Queensland Government Response to the Independent Commission of Audit Final Report |
Commission of Audit recommendation Queensland Government response
18 | | Mount Isa rail freight line be transferred to Port of Accepted in part |
Townsville to be managed as an integrated supply The Government accepts the recommendation as it
chain, with a view to divestment of the integrated relates to the benefits of an integrated supply chain.
business However, while there may be operational benefits from
an integrated supply chain, further work is required to
determine whether the transfer is the best way to
achieve these benefits. The Government does not
currently have a policy to sell State assets and remains
fully committed to seeking a mandate from the
Queensland people before divesting itself of any
government business. However, the Government
believes this proposal is worthy of an open and
transparent community debate to establish its viability
and to inform stakeholders of the costs and benefits of
Government owning such businesses.
19 | | Queensland Rail remain the owner and operator of Accepted |
the regional rail network, but with the maintenance The Government accepts this recommendation and
task to be outsourced through competitive tendering believes there is an important role for Queensland Rail
process. as the regional rail network owner and operator into
the future, but agrees that the maintenance task
should be subject to contestability. The Government is
mindful of the need to maintain employment levels in
regional areas and, in this regard, acknowledges the
importance of maintenance delivery from regional
bases. It should also be noted that contestability is not
an outcome – it is a process where Government tests
the market to ensure it is providing the public with the
best possible solution at the best possible price.
B4 Ports
20 | | The commercial operations of Gladstone Ports For further consideration |
Corporation and Port of Townsville Limited be The Government does not currently have a policy to
offered for long-term lease to private operators. sell Government businesses, and remains fully
committed to seeking a mandate from the people of
Queensland before divesting itself of any Government
businesses.
However, the Government believes this proposal is
worthy of an open and transparent community debate
to establish its viability and to inform stakeholders of
the costs and benefits involved. It should also be noted
that the offering of a long-term lease for the operation
of the commercial enterprises means the Government
would still retain ownership of these ports.
The Government commits to undertake further
detailed investigation of this particular proposal to
ensure that the debate is fully informed before making
any decision. The Government also notes the findings
of the Commission of Audit in relation to the
constraints imposed by Government ownership of
these businesses.
Regardless of the outcome of these considerations, the
Government will ensure that the businesses are
running as efficiently and effectively as possible, and
will adopt a prudent approach in ensuring decisions are
not taken that could erode the value that could be
realised for the benefit of Queenslanders in the context
of any possible handover of the ports’ commercial
enterprises.
Queensland Government Response to the Independent Commission of Audit Final Report 7
Commission of Audit recommendation Queensland Government response
21 | | As part of long-term leases, the Government pursue Accepted in principle |
opportunities to increase value through aggregation Subject to any decisions in relation to Recommendation
of assets, as follows: 20, the Government accepts this recommendation in
aggregation of the Mt Isa rail freight line with the principle and notes the need for ongoing planning in
Port of Townsville, as per Recommendation 18 relation to freight services (Mt Isa/Townsville) and
aggregation of pilotage services with port pilotage services.
facilities, to increase the scope of services that the
leased ports are able to manage.
22 | | The Government reserve the right to take action to Accepted in principle |
prevent delays in port development, to enable Subject to any decisions in relation to Recommendation
increased capacity to be developed by Government 20, the Government accepts this recommendation in
or other users in the event that a leased port does principle and notes that any long term lease
not wish to invest to meet such capacity. arrangements covering bulk commodity port terminals
would ordinarily include appropriate safeguards to
ensure under-utilised capacity can be allocated to
alternative users and capacity expansions are
undertaken in a commercially timely manner. In the
event of a significant breach of these requirements, the
State would reserve the right to step in and remedy the
situation. For those ports such as Port of Brisbane that
are already operated under long-term leases, such
arrangements have been put in place.
23 | | The Government retain North Queensland Bulk Ports Accepted |
as a GOC responsible for the management and The Government accepts this recommendation as it
future development of state strategic port facilities, relates to retaining NQBP in Government ownership,
and expand its role to include supply chain and acknowledges that a new skillset in supply chain
coordination. coordination will need to be added to North
Queensland Bulk Ports and careful coordination with
the Department of State Development, Infrastructure
and Planning and the Department of Transport and
Main Roads will be required. The Government also
notes that the Department of Transport and Main
Roads is currently undertaking a review of Ports’
governance, which may include recommendations on
corporate form.
24 | | Ports North be retained as a GOC in its current form Accepted |
in view of its limited commercial freight operations The Government accepts this recommendation as it
and important regional economic role. relates to retaining Ports North in Government
ownership, and notes that the Department of Transport
and Main Roads is currently undertaking a review of
Ports’ governance, which may include
recommendations on corporate form.
25 | | The ownership and control of remaining government Accepted in principle |
—owned, low volume regional ports be offered to The Government accepts this recommendation in
local authorities, in view of the significant role they principle and notes that local authorities are an
play in their local communities. important stakeholder in ports. On this basis, the
Government will consider each proposal on a case-by-
case basis and on its merits.
8 | | Queensland Government Response to the Independent Commission of Audit Final Report |
Commission of Audit recommendation Queensland Government response
B5 Regional Bulk Water
26 | | SunWater finalise the transfer of its irrigation Accepted |
channels to private irrigators and withdraw fully The Government accepts this recommendation and
from this activity. notes that in consultation with local irrigation areas, it
is currently investigating the feasibility of implementing
local management arrangements. The Government has
indicated that it will be looking for options which allow
channel schemes to achieve the benefits of local
management without additional cost when compared
to the service continuing to be provided by SunWater.
27 | | SunWater’s dedicated water supply infrastructure Accepted |
servicing commercial and industrial clients be The Government accepts this recommendation and
offered for private ownership and/or private notes that it sees the core role of SunWater to be the
operation, depending on which solution provides the management of regional bulk water. On this basis, the
best value for money outcome for the Government. Government will evaluate each proposal for divestment
on its commercial merits. The Government has
previously announced its intention to conduct a
broader review of SunWater.
28 | | Sunwater remain as a GOC with a residual function Accepted |
to retain ownership and management of existing The Government accepts this recommendation.
bulk water assets in regional Queensland.
29 | | Any future bulk water storage facilities be developed Accepted |
by the private sector, unless there are compelling The Government accepts this recommendation and
public good or market failure reasons not to do so. notes that it has already moved to implement
alternative delivery models for infrastructure projects
wherever possible.
B6 Financial Services
30 | | Whilst the Government retain responsibility for long—Accepted |
tail liabilities, it outsource provision of transactional, The Government accepts this recommendation and
registry and claim management services relating to notes that across all of the agencies associated with
its liabilities. long-tail liabilities, the contestability approach will be
adopted where a review of transactional, registry and
claim management services for a function indicates a
better value-for-money outcome.
The Government also notes that contestability is not an
outcome – it is a process where Government tests the
market to ensure it is providing the public with the best
possible solution at the best possible price.
31 | | The Government divest Queensland Investment For further consideration |
Corporation (QIC) with both its private and public The Government has made no decision on this
sector client book. recommendation and notes that it requires further
consideration. Its intent is that QIC continue operating
according to its current objectives, and the
Government remains fully committed to seeking a
mandate from the people of Queensland for any
potential sales.
32 | | The Government amend the Statutory Body Financial Not Accepted |
Arrangements Act and regulations to allow statutory The Government does not accept this recommendation
bodies to invest with a private sector funds manager at this time.
on the same basis as is currently permitted under
the Act and its regulations for QIC.
Queensland Government Response to the Independent Commission of Audit Final Report 9
Commission of Audit recommendation Queensland Government response
B7 Commercial Business Units
33 | | The Government seek expressions of interest for Accepted |
remaining Commercial Business Units (CBUs) services The Government accepts this recommendation and
for QBuild, Project Services and RoadTek provided in notes that it is consistent with current initiatives and
regional areas. Following market testing, policy direction. Businesses in regional Queensland
government provision of services in these areas should be afforded the opportunity provided by market
should continue only where there is an identified gap testing, but the Government is mindful of any impact
in private provision. on regional cities, towns and councils and the need to
ensure the long-term provision of services in those
regions.
34 | | The functions of the Property Services Group be Accepted |
limited to the development of major industrial sites The Government accepts this recommendation and
of State significance where there are strategic notes that it is consistent with the Government’s
considerations for government, and that surplus land current direction and will be considered as part of the
holdings be rationalised. current reform activities in the Department of State
Development, Infrastructure and Planning.
35 | | The Government contract out all of the services of Accepted |
QFleet to the private sector. The Government accepts this recommendation but
notes that further analysis needs to be undertaken
regarding the relative merits of completely outsourcing
fleet. Currently QFleet outsources all fleet
maintenance and repairs.
36 | | Services provided by remaining CBUs be subject to Accepted |
full cost pricing and government departments and The Government accepts this recommendation and
agencies be allowed to source private sector notes that it is consistent with current initiatives and
providers as an alternative to CBUs, where these are policy direction.
cost competitive and represent better value for
money.
B8 Pricing Regulation
37 | | A stable, predictable and consistent pricing Accepted |
framework be established for regulated The Government accepts this recommendation and
infrastructure, by adopting a policy that all pricing supports simplifying the legislative and administrative
reviews are conducted by the Queensland processes for pricing reviews conducted by the
Competition Authority under its enabling legislation, Queensland Competition Authority. It will implement
rather than through separate legislative or changes to the Queensland Competition Authority Act
administrative processes. 1997 and relevant legislation to achieve these
objectives.
38 | | The Queensland Competition Authority Act 1997 be Accepted |
amended to: The Queensland Government accepts the Commission’s
provide for a price determination power similar to recommendation to amend the Queensland
that which applies with the New South Wales Competition Authority Act 1997 to provide for a price
Independent Pricing and Regulatory Tribunal determination function similar to the power which
update and modernise access and price regulation applies in New South Wales. As part of this
provisions to reflect the commercial environment arrangement the Government will consider options to
for regulated assets. update and modernise access and price regulation
provisions to reflect the commercial environment for
regulated assets.
10 | | Queensland Government Response to the Independent Commission of Audit Final Report |
Commission of Audit recommendation Queensland Government response
C1 Financial Planning Framework
39 | | The Government produce an Intergenerational Accepted |
Report covering a 40 year horizon, to be produced The Government accepts this recommendation and
every 5 years to outline long-term demographic, notes the substantial body of work undertaken by the
economic and financial trends, and likely Commission of Audit on long-term economic and fiscal
implications for Queensland. challenges. The Government will target the first report
for the 2015-16 year.
40 | | The Government strengthen its asset management Accepted |
processes by developing and updating each year a 10 The Government accepts this recommendation and
year State Infrastructure Plan (SIP) which prioritises notes that an Infrastructure Development Strategy is
likely service delivery, capital and maintenance being prepared by the Department of State
requirements in the context of indicative funding Development, Infrastructure and Planning. The
capacity. Government expects that this strategy will form the
basis of the first 10-year State Infrastructure Plan and
will identify and prioritise requirements across all
elements of Government infrastructure. An indicative
funding envelope will be developed by Queensland
Treasury and Trade. This plan should be regarded as a
sub-set of the proposed Queensland Plan which will
provide a 30-year vision for the State.
41 | | Public sector agencies be required to produce annual Accepted |
10 | | year Total Asset Management Plans, as input to The Government accepts this recommendation, and |
the State Infrastructure Plan, which incorporate: notes that the process for asset planning should not be
whole-of-life assessments of investment in new cost prohibitive. Asset planning should be considered
and replacement assets and developed within the asset management
asset maintenance plans framework. The Government recognises the criticality
of putting in place measures to avoid a repeat of past
asset rationalisation and disposal plans asset planning and maintenance failures. For example,
in accordance with the Government’s service it has inherited an identified maintenance backlog of
delivery priorities. $324 million in Queensland Health, and has recently
needed to commit to funding $300 million in additional
maintenance in the Department of Education, Training
and Employment.
42 | | Common financial planning requirements should be Accepted |
applied across the General Government, GOCs and The Government accepts this recommendation, noting
Local Government sectors. that whilst the State Government has a direct role in
determining the appropriate financial planning horizons
across the General Government sector and
Government owned corporations, it should also
encourage (but not direct) local government to share
its planning horizons, particularly given the role that
the State plays in working with local authorities in
planning through the Department of Local
Government, Community Recovery and Resilience, and
the close ties in financing of State-guaranteed debt
through the Queensland Treasury Corporation.
43 | | Management of the State Borrowing Program be Accepted |
strengthened to support the Government’s debt The Government accepts this recommendation and
reduction strategies, with approval of funding to be notes that the process recommended already occurs
conditional upon enhanced credit lending for GOCs and that Treasury is moving to strengthen the
assessments and other terms and conditions based State Borrowing Program for statutory bodies,
on recommendations of the Queensland Treasury including local governments.
and Trade.
Queensland Government Response to the Independent Commission of Audit Final Report 11
Commission of Audit recommendation Queensland Government response
44 | | The Project Assurance and Value for Money Accepted |
Frameworks be revised and the process streamlined The Government accepts this recommendation and
to allow: notes that Projects Queensland has commenced a
Reduced timeframes for preliminary evaluation review of the Project Assurance and Value for Money
and business cases frameworks. Streamlining is possible to improve the
Revised tender process with less onerous and less effectiveness of the process. There is also considerable
costly bidding requirements work occurring on national guidelines to ensure
consistency across jurisdictions, which will also aid in
Greater acknowledgement of skills which will add improving tender processes. Projects Queensland was
value through innovation, efficiency and more established, among other reasons, to develop
effective management of risks, especially for large commercial skills around high risk complex projects.
and complex projects
45 | | The Strategic Project Program Board: Accepted |
Develop processes and structures to ensure that The Government accepts this recommendation and
the necessary planning and specification work notes that it has established a strategic project
precedes major project decisions program board, which will provide greater scrutiny of
Work with agencies to build project management major projects over their lifecycle and that Projects
skills and capacity at an operational level to Queensland is also working on improving project,
ensure projects are delivered within approved program and portfolio management skills, with an
budgets and achieve value for money outcomes. emphasis of managing complex projects. The
Government sees the combination of these two
functions as being comprehensive in addressing major
project definition and management.
C2 Asset Management
46 | | The Government rationalise its existing asset base Accepted |
with a view to: The Government accepts this recommendation as it
achieving better value from existing assets relates to land, property, plant and equipment. Each
(including better sharing of assets across element of the recommendation is consistent with
departments) current initiatives and policy direction. The
reducing asset costs by disposing of, or Government has recognised the need for stronger
consolidating use of, under-utilised assets central management of land and property, and on this
basis through the Economic Development Queensland
where efficiencies can be achieved, move public Board has established the Government Land and Asset
sector office accommodation to private sector Management Unit to progress the agenda. It is also
benchmarks examining ways in which facilitation of employee
examine and compare ownership and leasing housing can be improved and has taken steps to
arrangements with a view to utilising the most address inherited maintenance backlogs, both of which
cost effective solution for office accommodation are subject to the outcomes of current reviews in the
utilising the private rental market for the Department of Housing and Public Works.
provision of employee housing where feasible and
cost effective
achieving more effective maintenance of current
and future assets.
47 | | The tenancy and property maintenance Accepted |
management functions of government be The Government accepts the recommendation but
outsourced to expert private sector providers to notes that a final approach is subject to the outcomes
ensure maximum efficiencies are achieved. of a current review being undertaken by the
Department of Housing and Public Works.
48 | | The Government adopts a consistent rental rate Accepted |
policy with a uniform set of criteria to be applied The Government accepts that the current approach
across all Government residential properties. adopted across departments is inconsistent. On this
basis, it has initiated a body of work to develop options
to transition to a consistent rent policy.
12 | | Queensland Government Response to the Independent Commission of Audit Final Report |
Commission of Audit recommendation Queensland Government response
49 | | The operation and management of the remaining Accepted in principle |
five major stadiums currently undertaken by The Government accepts this recommendation and
Stadiums Queensland be outsourced to the non—notes that cost-effective outsourcing of the five major
government sector where it is cost-effective to do stadiums is also currently being considered as part of a
so. broader review which will inform the Government’s
final position.
C3 Budget Management Framework
50 | | A Charter of Budget Accountability (along similar Accepted |
lines to the Australian Government’s Charter of The Government accepts this recommendation for
Budget Honesty) be legislated to formalise the development of a Charter of Budget Accountability to
Government’s commitment to strong fiscal enhance fiscal management, accountability and
management, accountability and transparency, with transparency, and notes that the specific content of the
the Charter to include: Charter will need to be developed following an
the Government’s fiscal objectives assessment of similar legislation in other jurisdictions
a new budget planning and review framework to determine the model best suited to Queensland’s
circumstances. This response is of particular
minimum content requirements for improved importance if the Government is to avoid falling back
financial reporting in budget and related into the perilous fiscal situation that it inherited in
documents 2012.
a requirement for the publication of a pre-election
budget update.
51 | | The Financial Accountability Act 2009 be amended to Accepted in principle |
provide for: The Government accepts that the system of
all government revenues to be paid into the Appropriations that operates in Queensland requires
Consolidated Fund, to be appropriated by modernisation to strengthen controls and
Parliament to fund operational and capital accountability. The Government will ask Queensland
expenses of departments Treasury and Trade to implement changes to the
a revised appropriation process by which Appropriations system in light of the Commission’s
Parliament approves a total expense limit for work.
agencies, including a limit for employee expenses
a new Supplementary Appropriation Bill to require
government to seek Parliamentary approval for
additional expenses in the year in which they are
to be incurred
a revised capital funding process under which cash
funding for depreciation expense is held centrally
and agencies receive an explicit appropriation for
capital.
52 | | The annual budget process be strengthened by: Accepted |
improving the quality of budget submissions and The Government accepts this recommendation and
supporting information notes that the majority of the elements of this
managing funding pressures within a rigorous and recommendation are already in place. The concept of
disciplined assessment of fiscal capacity the Treasurer’s Advance will be considered as part of
the scope of implementation of changes to the
re-establishing a Treasurer’s Advance for any Appropriation process outlined in Recommendation 51,
urgent and unavoidable cost pressures noting that any expenditures under this arrangement
periodic review of progress in the implementation will require approval by the Cabinet Budget Review
of new spending and savings measures, including Committee.
review of outcomes achieved.
Reviewing base budgets of departments at least
once every three years
Queensland Government Response to the Independent Commission of Audit Final Report 13
Commission of Audit recommendation Queensland Government response
53 | | The Government enhance the cash funding process Accepted |
for agencies so that payments are made on an ‘as The Government accepts this recommendation and
needs’ basis, in accordance with cash flow notes that it is already in place. A number of measures
projections. to better manage agency cash balances have recently
been implemented and these changes have had the
effect of cash payments to agencies being made on an
‘as needs’ basis.
54 | | The Queensland financial and performance reporting Accepted |
regime be strengthened to promote transparency The Government accepts this recommendation and
and accountability, including by: notes that the strengthened financial and performance
extending the range and accessibility of analytical regime proposed is consistent with its current policy
information on budget aggregates agenda, including further development of the
creating a single dedicated electronic access point Queensland Treasury and Trade website to deliver
for government financial information additional financial and performance information.
consulting with interested parties with a view to
improving the relevance and usefulness of
published information
providing for departments to report separately on
administered items only where warranted on the
grounds of materiality.
C4 Grant Administration
55 | | The Government publish a list of all grant programs Accepted |
on an annual basis. The Government accepts this recommendation and
notes that planning is underway for this to occur
progressively as part of the 2013-14 Budget process.
The Social Services Cabinet Committee has also
recently been established by the Government to work
on the development of a common policy on grant
payments across the whole of government.
56 | | Grant programs across Government be rationalised Accepted |
and consolidated, with a view to: The Government accepts this recommendation and
reducing the piecemeal and fragmented nature of notes that action is underway in several large agencies
current programs to better define the nature and effectiveness of grant
adopting a consistent definition and treatment of payments. For example, Queensland Health recently
grants across Government, separate from engaged the previous Auditor-General of Queensland
subsidies, service level agreements and other to review its grants framework, and that information is
forms of payment for services rendered now being shared across Government through the
ensuring the efficiency and effectiveness of grant Social Services Cabinet Committee.
programs in achieving stated objectives
providing a more informed basis for future
decisions on the nature, range and scope of grants
proposed to be made, and the organisations
receiving these grants
achieving better value for money for the large
expenditure made on grants
14 | | Queensland Government Response to the Independent Commission of Audit Final Report |
Commission of Audit recommendation Queensland Government response
57 | | The administration of grant programs be managed Accepted |
by specialist grant administration systems based on The Government accepts this recommendation and
best practice, to minimise the administrative and accepts the need for a specialised approach to grants
overhead costs involved. administration in order to support activities that are
underway in several large agencies to better define the
nature and effectiveness of their grant payments. The
Social Services Cabinet Committee has also recently
been established by the Government to work on the
development of a common policy on grant payments
across the whole of government, making an efficient
approach to managing these payments essential.
C5—Long Term Systemic Reform
58 | | A Queensland Productivity Commission be Accepted in part |
established as a separate, independent body to The Government partially accepts this recommendation
advise the Government on measures to improve and proposes to combine the functions of the new
productivity and efficiency within the economy, with Commission with those of the current Queensland
arrangements as follows: Competition Authority to form the Queensland
(a) | | Functions Productivity and Competition Authority (QPCA), with |
absorb the role of the Public Sector Renewal the roles and functions of this body to be further
defined by Government. The Government has also
Board decided that the role of the Public Sector Renewal
absorb the role of the Office of Best Practice Board will not be absorbed into the QPCA.
Regulation
undertake regular reviews of the base budgets of
departments, and other reviews of service
delivery issues
undertake audits of business cases for all
infrastructure projects with a capital cost in excess
of $500 million and other strategic infrastructure
projects as appropriate.
as requested by the Treasurer, undertake other
reviews and report on measures to improve
productivity and efficiency across the Queensland.
the Commission to comprise Commissioners,
appointed for a period of five years, with grounds
for removal limited to serious misbehaviour.
the Commission to report to the Treasurer
funding to be provided through an appropriation
from the Consolidated Fund.
the Commission to be supported by a small
secretariat comprising officers employed under
arrangements independent of the public service.
Queensland Government Response to the Independent Commission of Audit Final Report 15
Commission of Audit recommendation Queensland Government response
59 | | The regulatory burden on industry be reduced by Accepted |
significantly shortening timeframes for all major The Government accepts this recommendation. It has
government approval processes (such as EIS been working on reducing the regulatory burden on
approvals and planning development approvals), industry and the timeframes for approvals since it came
without requiring additional government resourcing, to office. The Coordinator-General has made 145
including by: statutory decisions since April 2013, a decision rate
reducing the number of steps in the approval 3.25 times greater than the previous 12 month period.
process Reforms are also underway, in conjunction with
reducing maximum allowable times for particular industry and other stakeholders, to simplify the
steps in the process Environmental Impact Statement (EIS) process
including generic and risk based EIS Terms of
streamlining consultation processes with Reference, standardised consent conditions and
government agencies and other stakeholders outcome focused conditions.
standardising, codifying or otherwise simplifying
approval requirements.
60 | | Where the Treasurer decides to exempt a regulation Accepted in principle |
from the requirement to prepare a Regulatory The Government accepts this recommendation in
Assessment Statement, the Treasurer should principle, noting that it retains the right to determine,
immediately publish the rationale for granting the on a case-by-case basis, whether to publish reasons for
exemption, including all relevant information to granting an exemption to prepare a Regulatory Impact
support that decision. Statement.
61 | | The Government rationalise and consolidate industry Accepted |
development and assistance programs to achieve The Government accepts this recommendation and
better value for money and to ensure that such agrees that the best way to support business and foster
programs contribute to greater productivity in the economic growth is through providing efficient and
economy. strong government and low taxes and by reducing the
regulatory burden.
62 | | The Queensland Government negotiate with the Accepted |
Australian Government and other state governments The Government accepts this recommendation and
on measures to reduce the states’ reliance on notes that a reduced reliance on narrowly-based and
narrowly-based and inefficient taxes. inefficient taxes would have major economic and
budgetary benefits for Queensland. It is essential that
States have an adequately robust revenue base to
allow them access to the revenue and funding required
to meet their expenditure and service delivery
responsibilities. The Government considers the
objective of this recommendation would be best
advanced through an open and mature debate around
the full range of expenditure responsibilities and
revenue raising powers of the Commonwealth and
States.
63 | | In the absence of broader changes to federal Accepted |
arrangements (which are beyond the scope of this The Government accepts this recommendation and
Report), the Government pursue an agreed and clear notes that there are benefits from a clearly defined
protocol that sets out: separation of functions for States and the
functions to be performed by the states, and Commonwealth Government, including in particular
those which should be performed by the reduced cost associated with confused and overlapping
Australian Government service delivery responsibilities and reduced reporting
where shared responsibilities remain, the and compliance activity. Refer also to
common performance and compliance Recommendation 62.
arrangements which will reduce the cost of
confusing, overlapping and inconsistent
requirements of different levels of government.
16 | | Queensland Government Response to the Independent Commission of Audit Final Report |
Commission of Audit recommendation Queensland Government response
D1 Health Overview
64 | | The Queensland Government and the Australian Accepted |
Government delineate the specific health functions The Government accepts the recommendation, and
for which each level of government is responsible, notes that the Government is currently working with
with each government fully meeting its obligations. the Australian Government on a bilateral plan for
In relation to services such as primary health care, primary health care ensuring there is clear delineation
aged care and certain mental health services, the of health functions for which Queensland and the
Queensland Government should: Australian Governments are responsible in the areas of
vigorously resist any cost-shifting from the Primary Health Care and Aged Care.
Australian Government to the State
seek reimbursement for the cost of delivering
services that are the responsibility of the
Australian Government.
D2 Public Hospitals
65 | | The Government set a target to improve the Accepted |
efficiency of public hospitals, to meet the National The Government accepts this recommendation, noting
Efficient Price by 2014-15, through the expanded that the Blueprint for Better Healthcare in Queensland
application of casemix (activity-based) funding and was released in February 2013 and explicitly sets this
through improvements in productivity outlined in target. It is also noted that the Commonwealth
the Commission’s further recommendations on Government is currently positioned to only ever fund
public hospitals. the State to the level of this National Efficient Price.
66 | | To achieve improved efficiency of public hospital Accepted |
services, the Government should progressively The Government accepts this recommendation. In line
expand contestable markets, initially in metropolitan with the Queensland Health Blueprint the
areas, for the private provision of: Contestability Branch was established in 2013 to
clinical services – which happens already with improve service delivery and introduce contestability
some elective surgery, but in greenfield hospital reforms across Queensland Health.
developments could go far wider. However, the Government remains fully committed to
clinical support services such as pathology, ensuring all Queenslanders have access to a free public
radiology and pharmacy hospital system.
non-clinical support services such as catering,
cleaning, laundry and ward support.
67 | | The Government concentrate emergency Accepted |
departments on delivering appropriate emergency The Government accepts this recommendation and
care by: notes that the Hospital and Health Boards Act 2011 is in
developing strategies in consultation with place, which encourages cooperation between Hospital
Medicare Locals to reduce GP type presentations and Health Services and Medicare Locals.
to emergency departments – including
improvements in after-hours GP services and
expansion of privately operated, co-located
primary care clinics
adopting the Extended Care Paramedic model to
allow paramedics a greater scope of practice,
reducing unnecessary transfers to emergency
departments.
Queensland Government Response to the Independent Commission of Audit Final Report 17
Commission of Audit recommendation Queensland Government response
68 | | To realign the scope of Queensland’s public Accepted |
outpatient services to accord with best practice The Government accepts this recommendation and has
interstate, the Government: commenced defining clinical criteria for two high
adopt new delivery models, including increased volume specialist outpatient areas (endoscopy,
non-government sector delivery of outpatient ophthalmology) to prioritise patient access according to
services greatest need. To improve outpatient service delivery,
implement improved management models for alternative models of care, referral and discharge
outpatient departments that leverage best processes in partnership with the Medicare Local are
practice administrative and business processes being developed, with investigation of innovative
service delivery models and feasibility of public private
develop and implement referral criteria with partnerships for endoscopy and related services being
general practitioners, to improve the progressed.
appropriateness and consistency of referrals to
outpatient services
reduce pressure on inpatient services by
implementing clinical and cost-effective models of
care in outpatient services.
69 | | The Government continue to improve incentives for Accepted |
cost recovery and revenue generation through The Government accepts this recommendation as it
devolution of revenue to the local Hospital and relates to third party or non-public patients, and is
Health Services, and ongoing improvements to third continuing to implement further improvements to
party or non-public patient identification. processes.
However, the Government remains fully committed to
ensuring all Queenslanders have access to a free public
hospital system.
D3 Primary and Community Care
70 | | In relation to primary health care services, the Accepted |
Queensland Government: The Government accepts this recommendation and
work in partnership with the Australian notes that: it has commenced delineation of health
Government to ensure Queensland Health is functions for which Queensland and the Australian
appropriately reimbursed where it must remain a Government are responsible in the areas of Primary
provider of last resort for primary health care Health Care and Aged Care; and that Queensland
services Hospital and Health Services do not actively seek to
limit the role of the State as a provider of primary expand state funded primary care services and only
health care services in negotiations with the provide these services as a last resort.
Australian Government on the development of
the National Primary Health Care Strategic
Framework and bilateral Primary Health Care
Plan.
71 | | The Government: Accepted |
refocus community health services to reducing The Government remains fully committed to the free
demand on public hospitals and expanding public hospital system in Queensland. It accepts the
hospital substitution programs (such as Hospital in recommendation and notes that Hospital and Health
the Home) Services state-wide will lead the refocussing of
introduce contestability to the provision of community health services within their regions.
community health services.
72 | | The Government review eligibility criteria for subsidy Accepted |
schemes, such as the patient transport subsidy The Government accepts the recommendation and will
scheme, to align with practice interstate and with continue to work to ensure subsidy schemes are
the need to focus limited Government resources on efficient and effective. The Government maintains its
areas of greatest need. support for the Patient Travel Subsidy Scheme and has
provided an additional $98 million over four years in
the 2012-13 Budget.
18 | | Queensland Government Response to the Independent Commission of Audit Final Report |
Commission of Audit recommendation Queensland Government response
73 | | In relation to public oral health services, the Accepted |
Government: The Government accepts the recommendation and is
align service delivery with best practice interstate currently developing future options for public oral
in the short-term, through the introduction of co—health services within Queensland. Within these
payments and contestability in service provision options, the Government expects that the
leverage reform opportunities presented by the Commonwealth Government will play its part in
Australian Government’s Dental Reform package, funding public oral health services and not attempt to
while resisting any cost-shifting to the State. shift Commonwealth costs onto the State, and will
present this message to the Commonwealth.
74 | | The Government transition telephone support For further consideration |
services from 13HEALTH to the National Health Call The Government has taken no decision on this
Centre Network, healthdirect. recommendation and notes that the Government is
currently working on an analysis of options, including
market sounding and financial analysis with a view to
preparation of a business case. Options that will be
considered include —retain in-house; outsource to
another provider; or join the national health call centre.
75 | | To achieve improved efficiency of public hospital Accepted |
services, the Government develop opportunities for The Queensland Health Blueprint outlines directions for
the non-government sector to provide rural and rural and remote service delivery, with work continuing
remote health services for which the State is on defining rural model of service delivery and
responsible. implementation.
D4 Mental Health
76 | | To achieve improved efficiency and productivity of Accepted |
mental health services, the Government: The Government accepts the recommendation and is
introduce outcome and output based funding currently participating in the development of a national
models for mental health services, through the model for mental health through the National Mental
agreed Independent Hospital Pricing Authority Health Service Planning Framework. It is anticipated
process that this model will support contestable market
develop contestable market arrangements for the arrangements and provide a case-mix funding model.
provision of mental health services, in particular
for sub-acute services and community care units.
77 | | The Queensland Government strongly influence the Accepted |
development of the mental health activity based The Government accepts the recommendation and has
funding model being developed by the Independent strong representation at the Independent Hospital
Hospital Pricing Authority, which will contribute to a Pricing Authority’s Jurisdictional Advisory Committee
clearer delineation of responsibilities between the and its supporting technical advisory groups including
State and the Australian Government. the Mental Health Group. Queensland continues to
contribute to the development of National Mental
Health Service Planning Framework which aims to
achieve a population based planning model.
D5 Residential Aged Care
78 | | As provision of residential aged care is the Accepted |
responsibility of the Australian Government: The Government accepts the recommendation and
the Queensland Government advocate with the notes that a submission to the Commonwealth
Australian Government to ensure an adequate Community Affairs Legislation Committee on the aged
supply of federally funded aged care places in care reforms will advocate for the adequate supply of
Queensland residential aged care places in Queensland. The
the Queensland Government negotiate the Queensland Government is currently examining options
progressive transfer of ownership and operations to transfer places to non-government providers having
of its existing facilities to the non-government regard to local circumstances and capacity.
sector, with suitable safeguards to ensure
continuity of care for residents
Queensland Government Response to the Independent Commission of Audit Final Report 19
Commission of Audit recommendation Queensland Government response
D6 Health Sector Enablers
79 | | Queensland Health’s workforce flexibility and Accepted |
productivity be improved, through: The Government accepts the recommendation and
workforce redesign to make more cost-effective notes work is underway on award simplification with
use of medical, nursing and allied health increased flexibility and removal of demarcation
professionals in providing safe, quality health between occupational groups to be considered as part
care. of the process.
rationalising and simplifying industrial relations
arrangements, and ensuring management
flexibility is not compromised by restrictive work
practices.
accountable and transparent performance
incentive arrangements for senior clinical staff.
80 | | The Department of Health work with Hospital and Accepted |
Health Services to make better use of their asset The Government accepts the recommendation and is
bases in accordance with the Commission’s broader actively focussed on options including the use of public
Recommendation 46 regarding asset management. private partnerships, the non-government provision of
services using latent capacity, and how the private
sector could provide standalone facilities to service
outcomes. Similar principles are also being tested in the
provision of hard and soft facilities maintenance and
clinical services. However, it must be stressed that the
Government remains totally committed to ensuring all
Queenslanders have access to a free public hospital
system.
81 | | The Government implement performance and Accepted |
accountability arrangements to ensure the efficiency The Government accepts the recommendation and
and effectiveness of the new organisational notes the Contestability Branch business model
structure, through: currently being developed and implemented includes
enhancing the skills and capacity of the development of a capability framework and skills
Department of Health and the Hospital and Health development program in the areas of business
Services, particularly in relation to procurement performance improvements, contract specifications,
and contract management expertise contract management and performance. An
actively promoting clinical engagement in assessment of the current capacity and capability in
achieving financial and performance targets this area will shortly be undertaken.
ensuring the Department of Health implements
casemix and other activity based funding
arrangements to promote efficiency and effective
clinical outcomes in Hospital and Health Services.
82 | | ICT services and other technologies (such as Accepted |
telehealth) be leveraged to support new and The Government accepts the recommendation and is
innovative forms of service delivery. currently seeking cost effective solutions for service
delivery including the introduction of telehealth as a
mainstay in rural health services providing new services
and advanced treatment options as outlined in the
Queensland Health Blueprint.
20 | | Queensland Government Response to the Independent Commission of Audit Final Report |
Commission of Audit recommendation Queensland Government response
D7 Education
83 | | The Government adopt a strategic direction for Accepted |
education in Queensland that focuses on high The Government accepts this recommendation and
achievement and increasing student performance in notes that it is part of the recently released policy
every school. direction for the sector, Great Teachers = Great Results
through rewarding high performing teachers, better
mentoring beginning teachers and putting in place
performance evaluation measures to assist teachers to
continuously improve. The Government is also
introducing measures to improve school discipline.
84 | | The Government devolve resourcing and financial Accepted |
management responsibility to the school level and The Government accepts this recommendation, noting
increase school autonomy to generate innovative that Queensland’s state schools currently have a
school-based solutions to achieve the recommended significant degree of financial management
strategic direction. responsibility. The Government’s election commitment
to strengthen school autonomy through the creation of
Independent Public Schools is already underway, with
26 | | schools opting to operate as Independent Public |
Schools from 2013 and 120 schools expected to be
operating as Independent Public Schools by 2016. The
recently announced Great Teachers = Great Results will
extend this initiative to all remaining schools over time.
85 | | The Government ensure school autonomy is Accepted |
balanced by an accountability framework that places The Government accepts this recommendation and
emphasis on improved student outcomes and notes that this is already happening as part of the
promotes a culture of performance evaluation. National Framework, including through reporting
available to parents and the community on the
MySchool Website, and current policy settings at a
State level, including as part of the Great Teachers =
Great Results policy framework, the introduction of
contracts and performance bonuses for principals and
deputy principals.
86 | | The framework for performance management Accepted |
applied by the Department of Education Training and The Government accepts this recommendation and
Employment include mandatory consideration of notes that from 2014, it is proposed that the
student outcomes and teacher performance in the Developing Performance Framework will include an
assessment process. annual performance review process to monitor and lift
the standards of teachers and school leaders. This
approach is clearly articulated by the Government in its
recently released policy direction for the sector, Great
Teachers = Great Results.
87 | | The Government minimise impediments to further Accepted |
devolving workforce management responsibilities to The Government accepts this recommendation. It is
schools by removing restrictive provisions (e.g. noted that the Government recently concluded
specification of student-teacher ratios) from future negotiations on a new Teachers’ Enterprise Bargaining
certified agreements. Agreement and the Government will fully honour its
commitments under that Agreement.
Queensland Government Response to the Independent Commission of Audit Final Report 21
Commission of Audit recommendation Queensland Government response
88 | | The Government develop an evaluation capability in Accepted |
the Department of Education, Training and The Government accepts this recommendation and
Employment with explicit responsibility for: notes that there is an additional skill set that needs to
evaluating system-wide reform initiatives be developed in the Department of Education, Training
(including initiatives under National Partnership and Employment. Enhancing this capability within the
Agreements), and Department of Education, Training and Employment
creating an evaluation culture that promotes and will complement the overall direction set forth in
supports the identification and dissemination of Government’s recently released policy statement for
innovative teaching strategies at the school level. the sector, Great Teachers = Great Results and the
Government remains committed to facilitating the
necessary level of cultural change.
89 | | The Government improve the management of school Accepted |
assets by: The Government accepts this recommendation in
ensuring that high priority is given to principle and notes that the Schools Planning
reconfiguring the current schools asset base over Commission is already in place. The Department of
the medium to long term to increase utilisation Education, Training and Employment has also trialled
rates and reduce ongoing maintenance costs, the provision of maintenance operations by private
particularly for metropolitan schools sector organisations which has produced cost savings,
adopting innovative options with the non—and with Projects Queensland has recently gone to
government sector to improve cost effectiveness market for ten new schools in South East Queensland
in building and maintaining schools. as a Public Private Partnership, including finance,
design, construction and operations.
D8 Vocational Education and Training
90 | | The Government reduce duplication between State Accepted |
and Australian Government resource allocation for The Government accepts this recommendation and
vocational educational training (VET) by focusing notes that it is in line with the outcomes of the Skills
State investment on certificate level training, Taskforce.
particularly for those individuals without a post-
school qualification – with priority for those
qualifications and pathways that are critical to
industry and the economy.
91 | | An independent industry-led skills statutory Not Accepted |
authority be established, with leadership The Government acknowledges there needs to be a
responsibility for developing a competitive skills stronger alignment between skills training and the
market through a clearly defined purchaser role in needs of employers, but does not consider an
the VET system. independent statutory skills authority is the best way to
meet that objective.
92 | | There be a clear separation between the VET Accepted in part |
purchaser function performed by the independent The Government accepts the need for greater
skills authority and the VET provider function delineation between the purchaser and provider roles
(comprising TAFE and private Registered Training of the Department of Education, Training and
Organisations). Employment, but does not consider an independent
statutory authority for the purchasing of training is
required to meet this objective.
93 | | Competition be adopted as the preferred VET Accepted |
purchasing model, with a target to be established for The Government accepts this recommendation and
the proportion of government funding allocated notes that it is consistent with the outcomes of the
through contestable processes of 80% by 2015. Skills Taskforce.
22 | | Queensland Government Response to the Independent Commission of Audit Final Report |
Commission of Audit recommendation Queensland Government response
94 | | The skills authority be responsible for improving Accepted in part |
alignment between the skills produced by the VET While the Government believes responsibility for
system and the needs of the economy, through developing a competitive skills market in the VET
strategies such as: system should remain with the Department of
supporting open and contestable arrangements Education, Training and Employment, it endorses the
for allocating government investment for those pursuit of the strategies outlined in the
markets considered competitive recommendation and notes that they are consistent
improving labour demand analysis to influence with the outcomes of the Skills Taskforce.
future investment priorities
improving skills demand and supply information
available to consumers
a deregulated pricing mechanism that reflects the
shared benefits of skills
variable government subsidies for courses to
reflect skill priority needs of the economy
optimisation of investment from both individuals
and industry, for example through greater use of
HECS-type schemes
improving quality assurance through industry-led
purchasing and market oversight.
95 | | Asset ownership be separated from TAFE and Accepted |
transferred to a specialist commercial entity with The Government accepts this recommendation and
skills and expertise in owning and managing such notes that such an approach is a critical step to aligning
assets, with a view to rationalising the asset base, TAFE with the needs of the VET sector. The
facilitating third party access and improving asset Government is especially committed to providing
utilisation appropriate levels of VET services in Regional
Queensland.
96 | | Reforms be implemented to redefine the role of Accepted |
TAFE as a public training provider operating in a The Government accepts this recommendation and
competitive skills market, with particular emphasis notes that it is consistent with current policy settings.
on: Legislation to establish TAFE Queensland as a statutory
refocussing the capabilities of its workforce to body with a commercially-focussed board by 1 July
respond more effectively to the skills training 2013 was recently introduced into Parliament.
needs of the economy The Government is committed to working with unions
revised and competitive industrial relations and TAFE employees to negotiate a modern enterprise
arrangements for the TAFE workforce, to address agreement which delivers the flexibility and
cost pressure in areas such as restrictive productivity outcomes necessary for TAFE Queensland
attendance time and normal hours; loadings and to operate more efficiently in a competitive skills
overtime; and additional leave entitlements market, and has commenced negotiations with the
unions on a new Certified Agreement.
D9 Disability Services
97 | | As recommended by the Productivity Commission, Accepted |
the Queensland Government require the Australian The Government accepts this recommendation. The
Government to provide full funding of the National Government has already committed an additional $868
Disability Insurance Scheme. million over five years from 2014-15 to support the
implementation of the National Disability Insurance
Scheme (NDIS), and is actively focused on advancing
discussions with the Australian Government on
providing the additional funding required for the NDIS
in Queensland, consistent with the recommendation of
the Productivity Commission.
Queensland Government Response to the Independent Commission of Audit Final Report 23
Commission of Audit recommendation Queensland Government response
98 | | In the next three years and prior to the full Accepted |
commencement of the National Disability Insurance The Government accepts this recommendation and
Scheme, the Queensland Government transition all notes that this approach is consistent with its policy
services currently provided by the Accommodation position on contestability of service delivery. It will
Support and Respite Services to the non-government continue to work closely with clients, their families and
sector through a formal and transparent re the non-government sector on this issue.
commissioning process that allows for a progressive
movement towards client choice and control.
99 | | The Government continue to support and monitor Accepted |
the development of the non-government sector’s The Government accepts the recommendation and
governance capability as part of the move to market notes that the Department of Communities, Child
contestability in specialist disability services. Safety and Disability Services continues to actively
support the development and strengthening of the non
government sector’s market capability and capacity, as
does the Government’s Social Services Cabinet
Committee which was established to assist the sector
with a whole of government approach.
D10 Child Safety Services
100 In view of the Carmody Inquiry, with its Accepted
comprehensive terms of reference, the Commission The Government notes this comment and awaits the
makes no specific recommendations on changes to outcomes of the Carmody Commission of Inquiry.
the delivery of child safety services in Queensland.
However, the Commission encourages the Carmody
Inquiry to consider, in addition to service quality, the
cost effectiveness of various policy options for the
delivery of child protection services in Queensland.
D11 Police Service
101 Resourcing decisions for the Queensland Police Noted
Service: The Government notes that this recommendation is
be based on a comprehensive analysis of risk subject to the outcomes of the Keelty Review into the
factors, rather than simple police-to-population Queensland Police Service, Queensland Fire and
ratios Rescue, Queensland Ambulance Service, Emergency
support the application of police service models Management Queensland and Queensland Corrective
that are flexible and efficient in managing Services.
demand, and make use of modern ICT tools.
achieve better integration of workforce and
infrastructure needs
102 The Queensland Police Service adopt alternative Noted
models for service delivery, including civilianisation The Government notes that this recommendation is
and/or competitive market tendering processes for subject to the outcomes of the Keelty Review into the
roles which need not be done by sworn officers, Queensland Police Service, Queensland Fire and
including: Rescue, Queensland Ambulance Service, Emergency
traffic control services, including police escorts Management Queensland and Queensland Corrective
and wide-load escorts Services.
mobile traffic camera services
court support, technical support, watch house and
client service roles.
24 | | Queensland Government Response to the Independent Commission of Audit Final Report |
Commission of Audit recommendation Queensland Government response
103 The Queensland Police Service modernise its Noted
workforce management arrangements by: The Government notes that this recommendation is
creating greater flexibility in district-level rostering subject to the outcomes of the Keelty Review into the
removing barriers to the lateral appointment of ex Queensland Police Service, Queensland Fire and
—members and interstate police officers Rescue, Queensland Ambulance Service, Emergency
Management Queensland and Queensland Corrective
reforming sick leave bank entitlements to Services.
promote timely rehabilitation
revising operational shift allowance arrangements
to ensure they reflect actual work patterns
104 The Queensland Police Service rationalise and Noted
consolidate its existing capital stock, particularly in The Government notes that this recommendation is
relation to under-utilised assets, and possible co—subject to the outcomes of the Keelty Review into the
location with emergency service assets, as part of a Queensland Police Service, Queensland Fire and
broader infrastructure strategy that is more Rescue, Queensland Ambulance Service, Emergency
responsive to modern police service delivery needs. Management Queensland and Queensland Corrective
Services.
D12 Corrective Services
105 The Government evaluate international and Accepted
interstate experience with a view to adopting The Government accepts this recommendation, noting
successful models and innovative ways of reducing that it is in line with the Department of Community
recidivism. Safety’s current move towards focussing on improved
outcomes which includes consideration of current
national and international themes.
106 The management of all correctional facilities in Noted
Queensland be progressively opened to competitive The Government notes that this recommendation is
tendering processes, where there is a contestable subject to the outcomes of the Keelty Review into the
market, to ensure that the best value for money Queensland Police Service, Queensland Fire and
outcomes are achieved. Rescue, Queensland Ambulance Service, Emergency
Management Queensland and Queensland Corrective
Services.
107 Where the operation of correctional facilities Noted
remains in public hands, market capacity be assessed The Government notes that this recommendation is
at a state-wide and regional level to determine the subject to the outcomes of the Keelty Review into the
feasibility of contracting out the provision of ancillary Queensland Police Service, Queensland Fire and
services to alternative cost effective suppliers, Rescue, Queensland Ambulance Service, Emergency
including: Management Queensland and Queensland Corrective
Psychological and counselling services Services.
Business development services for prison
industries
24 | | hour electronic monitoring of offenders |
Rehabilitation programs to offenders addressing
the causes of criminal behaviour
Offender drug and alcohol testing services
Prison catering services
Court services (e.g. escorting prisoners within a
court complex).
108 Where the operation of correctional facilities Accepted
remains in public hands, maintenance arrangements The Government accepts this recommendation, noting
for each corrective services facility in Queensland be that it is consistent with the Government’s current
subject to competitive tender processes as current approach to service provision which focusses on a
contracts expire, with a view to contracting strong Value-for-Money framework.
alternative cost-effective suppliers offering a better
value for money solution.
Queensland Government Response to the Independent Commission of Audit Final Report 25
Commission of Audit recommendation Queensland Government response
109 Subject to the expansion of videoconferencing, Noted
competitive market tendering processes be adopted The Government’s final position is subject to the
for the delivery of residual prisoner transport recommendations and outcomes of the Keelty Review
services, especially in south-east Queensland. into the Queensland Police Service, Queensland Fire
and Rescue, Queensland Ambulance Service,
Emergency Management Queensland and Queensland
Corrective Services.
D13 Emergency Management
110 The Government make greater use of risk-based Noted
approaches to managing demand in the delivery of The Government notes that this recommendation is
ambulance, fire and rescue and other emergency subject to the outcomes of the Keelty Review into the
management services. Queensland Police Service, Queensland Fire and
Rescue, Queensland Ambulance Service, Emergency
Management Queensland and Queensland Corrective
Services.
111 The Government pursue further opportunities for co—Noted
location of police, ambulance, fire and rescue, and The Government notes that this recommendation is
other emergency management infrastructure to subject to the outcomes of the Keelty Review into the
improve utilisation, increase efficiency and provide Queensland Police Service, Queensland Fire and
better integrated emergency responses. Rescue, Queensland Ambulance Service, Emergency
Management Queensland and Queensland Corrective
Services.
112 In the longer term, the Government further integrate Noted
ambulance services with Queensland Health, The Government notes that this recommendation is
including through co-location of facilities. subject to the outcomes of the Keelty Review into the
Queensland Police Service, Queensland Fire and
Rescue, Queensland Ambulance Service, Emergency
Management Queensland and Queensland Corrective
Services.
113 The Government outsource the provision of Noted
medically authorised transports, especially in south—The Government notes that this recommendation is
east Queensland, through a contestable market subject to the outcomes of the Keelty Review into the
process. Queensland Police Service, Queensland Fire and
Rescue, Queensland Ambulance Service, Emergency
Management Queensland and Queensland Corrective
Services.
114 The Department of Community Safety adjust its Noted
commercial operations to support: The Government notes that this recommendation is
Developing strategic partnerships with the private subject to the outcomes of the Keelty Review into the
sector for the delivery of commercial training Queensland Police Service, Queensland Fire and
programs Rescue, Queensland Ambulance Service, Emergency
Consolidating internal registered training Management Queensland and Queensland Corrective
organisation resources where efficiencies can be Services.
reasonably achieved
Implementing a managed withdrawal from
commercial activities that are delivered in
competitive markets, are not providing a clear
public good, and are not essential to maintaining
core service delivery capability.
26 | | Queensland Government Response to the Independent Commission of Audit Final Report |
Commission of Audit recommendation Queensland Government response
D14 Housing Services
115 The Government progressively transition the Noted
ownership and management of existing and new The Government wholeheartedly accepts its
public housing stock to the non-government sector, responsibility to deliver housing for disadvantaged and
with the scope and timeframe for transition to be vulnerable Queenslanders. This can be achieved by
determined by the sector’s performance and different models such as private partnerships and
governance capability. management by community housing organisations. The
Government commits to exploring innovative ways of
providing new public housing stock.
D15 Social Inclusion
116 Social inclusion services funded by Department of Accepted
Communities, Child Safety and Disability Services be The Government accepts the recommendation as being
rationalised and consolidated, to reduce consistent with current directions, and notes that in the
fragmentation and create a more integrated and case of youth services, for example, the replanning and
strategic framework for the delivery of services. renewal of services is underway.
117 As part of the rationalisation of social inclusion Accepted
services, the Department of Communities, Child The Government accepts this recommendation and
Safety and Disability Services work with the non notes that it is consistent with current policy
government sector to help it establish broader and directions. The Government recently established the
more viable service solutions. Social Services Cabinet Committee to connect and work
with the non-government sector and this level of
interaction is consistent with the Government’s
philosophy of supporting non-government
organisations to effectively deliver services on behalf of
Government.
118 The Department of Communities, Child Safety and Accepted
Disability Services continue to implement client—The Government accepts this recommendation and
centred services including through integrated service notes that it is consistent with current policy directions.
delivery and case management to deliver better
outcomes to clients, especially those with complex
needs such as entrenched disadvantage and social
exclusion.
119 The Department of Communities, Child Safety and Accepted
Disability Services over time shift its investment The Government accepts this recommendation and
focus to early intervention and prevention services notes that it is consistent with current policy directions.
targeting those most at risk of entrenched
disadvantage and social exclusion to reduce the
investment in crisis services.
D16 Justice and Court Services
120 The Government re-prioritise judicial resources Accepted
within the court system to address the length of The Government will work with the judiciary to achieve
delays in criminal proceedings occurring in the the timely resolution of matters before the courts.
Magistrates’ Court and Children’s Court.
Queensland Government Response to the Independent Commission of Audit Final Report 27
Commission of Audit recommendation Queensland Government response
121 The Government make greater use of ICT to drive Accepted
cost savings and efficiencies in court operations by: The Government accepts this recommendation, and
significantly expanding the use of video notes that progress is already being made utilising
conferencing between correctional centres and these approaches.
courts for all bail, procedural and committal
matters
reviewing, updating and implementing the
recommendations from the Future courts
Program and Capable Courts in a staged approach,
based on a cost-benefit analysis. The goal should
be to move to electronic delivery of cost and
registry services within 10 years.
122 The Government seek greater cost recovery in two Not Accepted
key areas: The Government does not accept this
lodgement fees for civil court matters for the recommendation, noting that it has made an election
District and Supreme courts should be increased commitment that increases in lodgement fees for civil
from the current 74% (Supreme Court) and 79% court matters for the District and Supreme courts
(District Court) to a target of 90% of the all-states should be limited to CPI increases.
average It is also noted that an offender levy has now been
costs associated with dealing with people—introduced to assist in recovering other court costs.
smuggling offences under the Migration Act 1958
should be recovered from the Australian
Government.
123 The Government expand and continue the reform Accepted
process commenced with the Moynihan Review by: The Government accepts this recommendation but
extending the types of ticketable offences as well notes that broad consultation is needed on the
as the range of mandatory ticketable offences proposals outlined.
expanding the range of summary offences
introducing an electronic guilty plea for simple
and minor indictable offences
streamlining any multiple review or appeal
mechanisms for administrative decisions.
E1 Workforce
124 The goal for the public sector must be to achieve the Accepted
highest standards of excellence and to ensure that The Government accepts this recommendation and
Queensland is the best administered State in notes that the vision and goal have already been
Australia. adopted. Early in its term, strategic planning by Cabinet
and CEOs saw a shared goal and vision established for
the Queensland Public Sector. The Public Service
Commission is leading a culture and values renewal
program to embed the behaviours that will ensure the
goal and vision are achieved.
28 | | Queensland Government Response to the Independent Commission of Audit Final Report |
Commission of Audit recommendation Queensland Government response
125 All public sector agencies develop and publish a five Accepted
year strategic workforce plan. The plan should The Government accepts this recommendation and
include the following issues: notes that such an approach is part of the
workforce size, composition and capability Government’s broader public sector renewal agenda to
identification of demand and supply pressures, improve the quality and effectiveness of the
including recruitment challenges and critical skill Queensland public sector. Under current planning, the
gaps, that may affect or impede business Government will develop an overall Workforce
outcomes Planning Framework to give guidance to specific agency
plans, and when agency plans are complete will review
initiatives or strategies to attract, develop and them to ensure consistency and alignment with
retain an efficient and effective workforce aligned Government direction.
with business outcomes
identification of workforce metrics, including staff
surveys, to monitor and assess human resource
performance, aligned with and to support
business outcomes.
126 From the recommended agency workforce plans, the Accepted
Public Service Commission develop and implement a As with the previous recommendation, the
whole-of-government strategic workforce plan which Government accepts this recommendation and notes
addresses future workforce capabilities, needs and that such an approach is part of the Government’s
performance. broader agenda to improve the quality and
effectiveness of the Queensland public sector. Under
current planning, the Government will develop an
overall Workforce Planning Framework to give
guidance to specific agency plans, and when agency
plans are complete will review them to ensure
consistency and alignment with Government direction.
This activity is seen as a medium term initiative.
127 The role of the Public Service Commission be Accepted
focussed on setting and coordinating service-wide The Government accepts this recommendation. The
human resource and industrial relations strategies, Public Service Commission is already working in this
and providing support, guidance and capability way to better support CEOs in discharging their
development to agencies in the implementation of accountabilities.
these strategies, rather than seeking to direct and
control agency practices.
E2 Employment Framework
128 The Public Service Act 2008 be amended to Accepted
incorporate the following: The Government accepts this recommendation and
core employment conditions for all persons supports the positive outcomes that it will generate,
employed in the Queensland public service but notes that a significant amount of work needs to be
streamlining of employment engagements to done on planning and implementing such an approach,
three categories: including ongoing consultation with public sector
employees.
1. | | Ongoing employment (full time or part time) |
3. | | Non-ongoing employment (full time or part time) |
129 All other employing legislation for specific groups or Accepted
categories of public service employees be amended The Government accepts this recommendation and
to remove core employment conditions which are to supports the positive outcomes that it will generate,
be covered in the proposed amendments to the but notes that a significant amount of work needs to be
Public Service Act 2008, with only specific done on planning and implementing such an approach,
qualification and occupation issues to remain. including ongoing consultation with public sector
employees.
Queensland Government Response to the Independent Commission of Audit Final Report 29
Commission of Audit recommendation Queensland Government response
130 The Industrial Relations Act be administered by the Accepted in part
Public Service Commission and updated to ensure it The Industrial Relations Act 1999 covers workplaces
is modern, flexible and relevant to the public sector outside the Queensland Public Service. Therefore the
environment. proposal that the Public Service Commission administer
the Act is not accepted. The Government agrees,
however, that further work is needed to delineate the
roles of the Public Service Commission and the
Department of Justice and Attorney-General.
131 Awards continue to provide the basis for public Accepted
sector wages and conditions; however only matters The Government accepts this recommendation and
not covered by legislation or public service directives supports the positive outcomes that it will generate,
should be included. The number of awards that but notes that a significant amount of work needs to be
apply in the public sector should be significantly done on planning and implementing such an approach,
reduced. including ongoing consultation with public sector
employees.
132 Certified agreements only contain wages and Accepted
conditions for specific groups of employees which The Government accepts the recommendation as it
are outside award conditions and which are linked to relates to the contents of certified agreements and
improvements in productivity and performance. All their relationship to awards.
certified agreements are to be approved by the
Public Service Commission.
E3 Classification Framework
133 The Public Service Commission: Accepted
Review the existing work level standards (or The Government accepts this recommendation and
generic level statements, work level descriptions supports the positive outcomes that it will generate.
or other similar title) with a view to developing Significant progress has already been made in respect
revised whole-of-government work level of guidelines to assess work value. The Government
standards that are modern and meet the needs of notes that there will need to be ongoing consultation
agencies with public sector employees.
Develop guidelines to assist agencies with the
assessment of work value and determination of
appropriate levels
134 The Public Service Act 2008 be amended to provide Accepted
for: The Government accepts this recommendation and
employees to be appointed to a generic supports the positive outcomes that it will generate,
broadbanded level in the public service, rather but notes that a significant amount of work needs to be
than a specific position in a public service agency, done on planning and implementing such an approach,
thereby promoting greater flexibility and mobility including ongoing consultation with public sector
in resource utilisation to address the service employees.
delivery priorities of the Government
the new broadbanded classification system be in
accordance with the Commission’s preferred
Option A
the proposed new broadbanded classification
system be supported by a revised job evaluation
methodology based on work level descriptors and
core competencies, to be developed by the Public
Service Commission, together with guidelines for
job evaluations.
30 | | Queensland Government Response to the Independent Commission of Audit Final Report |
Commission of Audit recommendation Queensland Government response
135 Temporary Attraction and Retention Incentives Accepted
(ARIs), not forming part of base salary, be applied as The Government accepts this recommendation and
necessary to meet specific labour market recruiting notes that whilst such incentives are necessary, it
pressures. The Attraction and Retention Incentives expects that these will play a minor role in the overall
should be approved by the Public Service recruitment profile, and be applicable only in limited
Commission Chief Executive and should be subject to circumstances.
stringent requirements and performance
assessment. The Public Service Commission should
ensure annual public reporting on the number and
value of temporary ARIs approved.
E4 Mobility and Flexibility
136 Agencies be required to adopt flatter organisational Accepted
structures to encourage more streamlined and The Government accepts this recommendation and
effective decision-making processes within notes that the Public Service Commission (PSC) has
Government, thereby reducing regulatory and developed models of optimal executive management
administrative delays for business and the levels and layers and has reviewed departmental
community. organisation and executive management structures to
align the models. The PSC will continue to work closely
with chief executives to ensure flatter organisational
structures continue to be pursued.
137 The Public Service Act 2008 be amended to remove Accepted
the ‘reasonable grounds’ test for transfers and to The Government accepts this recommendation, and
provide for employees to be transferred on the basis notes that whilst there is a need for improved
that the terms and conditions of their employment processes in relation to transfers, it will not seek to
are comparable and that their substantive level of advance this recommendation without consultation
remuneration is maintained. with employees.
138 All Senior Executive Service (SES) officers be Accepted
employed on standardised contracts. The Chief The Government accepts this recommendation and
Executive of the Public Service Commission promote notes that it is consistent with the approach currently
easier transfer and greater mobility of SES officers being implemented by the Public Service Commission.
between departments, in accordance with changing The framework required to support this approach will
priorities. Department Chief Executives retain be completed in the short term.
responsibility for employment of SES officers, and co
—operate with the Public Service Commission to
allocate resources across the public service to areas
where the Government’s needs are greatest.
E5 Performance Management
139 The Public Service Commission co-ordinate and Accepted
oversee the implementation of more effective The Government accepts this recommendation and
performance management arrangements within the notes that it is consistent with policies and initiatives
public service agencies, including by: currently being developed and implemented by the
building and supporting the capacity of managers Public Service Commission.
to apply effective performance management
practices
developing both financial and non-financial
incentives that encourage public service
employees to improve performance
streamlining public sector disciplinary processes
to deal effectively and expeditiously with under-
performing employees.
Queensland Government Response to the Independent Commission of Audit Final Report 31
Commission of Audit recommendation Queensland Government response
140 Public service agencies ensure that: Accepted
performance management practices are applied The Government accepts this recommendation and
regularly and consistently at all levels of their notes that it is consistent with policies and initiatives
organisations currently being developed and promoted by the Public
performance management is embedded as a Service Commission.
performance expectation for all managers
clear linkages are established between
performance management and service delivery
outcomes.
141 The responsibility and accountability for the Accepted
management of minor misconduct matters be The Government accepts the intent of this
returned to public service agencies and managers, recommendation and the need for greater agency
with oversight to be provided by way of post-action involvement, but notes that the final implementation
audit or review by the Public Service Commission. of this recommendation is subject to the Government’s
response to the outcomes of the Callinan Review of the
Crime and Misconduct Commission.
E6 Departmental Corporate Services
142 In the short term, the Government continue the Accepted
transfer of corporate services functions for The Government accepts this recommendation and
Queensland Health and the Department of notes that this action has largely been completed.
Education, Training and Employment (DETE) back to
the Queensland Health Shared Services Provider and
DETE Corporate and Professional Services
respectively, while at the same time investigating
opportunities for immediate savings from
contestability of all departmental corporate services
functions.
143 The Government discontinue the mandated use of Accepted
centralised corporate services functions through The Government accepts this recommendation but
Queensland Shared Services. notes that a detailed implementation plan which first
and foremost establishes an orderly process to manage
the implications of this recommendation is needed.
144 The Government introduce an open, contestable Accepted
market for the delivery of all corporate services by The Government accepts this recommendation and
public or private providers, based on value for notes that, as with Recommendation 143, a detailed
money considerations. implementation plan which first and foremost
establishes an orderly process to manage the
implications of this recommendation is needed.
145 Queensland Shared Services be empowered to offer Accepted
services to agencies on a contestable basis in a The Government accepts this recommendation and, as
competitive market environment while it remains with the Commission’s other recommendations relating
viable to do so. to corporate service provision, notes that a detailed
implementation plan which first and foremost
establishes an orderly process to manage the
implications of this recommendation is needed.
32 | | Queensland Government Response to the Independent Commission of Audit Final Report |
Commission of Audit recommendation Queensland Government response
146 The Public Service Commission work with agencies to Accepted
strengthen their focus on strategic issues which The Government accepts this recommendation and
ensure: notes that as a result of the recent Public Service
senior corporate services staff have the skills and Commission Review of Corporate Services in agencies, a
capacity to effectively manage corporate Corporate Services Taskforce has been established to
functions (by becoming ‘corporate services proceed with implementation of initiatives that simplify
strategists’) in support of agency business and processes and address the capacity of staff to
service delivery needs undertake key strategic and contestability activities.
corporate services staff have the skills and
capacity to commission, manage and realise the
benefits of contestable transactional corporate
services.
E7 Information and Communications Technology
147 The Government adopt an ‘ICT as a service’ strategy Accepted
and source ICT services, especially commoditised The Government accepts this recommendation and
services, from private providers in a contestable notes that it is consistent with the findings of the ICT
market where this is feasible and represents value Audit and current industry directions. Transition to this
for money. model is based on positive business cases which
preserve the integrity of agency systems.
148 The Government utilise as appropriate cloud based Accepted
computing and other emerging technologies as The Government accepts the recommendation and
enablers to complement its ‘ICT as a service’ notes that this approach is a key element of
strategy. implementing the ‘ICT as a service’ strategy
(Recommendation 147).
149 The Government discontinue the role of CITEC as a Accepted
centralised provider of ICT services within The Government accepts this recommendation but
government, and initiate a process to divest the notes that additional policy work is required to
CITEC business within two years understand the implications and consider broader
issues. It notes that CITEC is only part of a broader
services provision and ICT asset environment in the
Queensland Government, and as with other
recommendations relating to ICT and corporate service
provision, notes that a detailed implementation plan
which first and foremost establishes an orderly process
to manage the implications of this recommendation is
needed.
150 The Government: Accepted
discontinue its role as an owner and manager of The Government accepts this recommendation and
significant ICT assets and systems notes that, as with Recommendation 143, a detailed
implement a program to divest ICT assets and implementation plan which first and foremost
systems, with required ICT services to be establishes an orderly process to manage the
purchased under contractual arrangements with implications of this recommendation is needed.
private providers.
151 The Government implement best practice Accepted
governance arrangements for the recommended The Government accepts this recommendation and
new ‘ICT as a service’ strategy to ensure that value supports the Commission in implementing governance
for money is achieved from this strategy. arrangements which produce high quality outcomes.
Queensland Government Response to the Independent Commission of Audit Final Report 33
Commission of Audit recommendation Queensland Government response
152 The Queensland Government Chief Information Accepted
Office work with agencies to re-focus their ICT The Government accepts this recommendation.
resources on strategic issues which ensure:
agency Chief Information Officers have the skills
and capacity to effectively manage ‘ICT as a
service’ strategy from both whole-of-government
and agency perspectives
agency ICT staff have the skills and capacity to
commission, manage and realise the benefits of
contestable ICT services.
E8 Government Procurement
153 The Government adopt a procurement framework Accepted
which: The Government accepts this recommendation and
establishes consistent, standardised policies and notes that it is underway. However, Government also
practices across government notes the inherent tension between promoting more
derives maximum leverage from the State’s centralisation and greater devolution in approaches to
substantial purchasing power, in the acquisition of purchasing and procurement, and will strive to ensure
commoditised and standardised supplies the right balance to achieve best value-for-money
provides agencies with the flexibility to pursue outcomes for Queensland taxpayers.
their own procurement options within the whole-
of-government procurement framework to meet
their specific needs and where there is
demonstrable value for money
ensures annual public reporting of the
procurement activity occurring within Queensland
Government
154 The Print Management Unit and Travel Management Accepted
System be discontinued, with contestability to be The Government accepts this recommendation and
introduced to the provision of these services. notes that implementation is underway as part of the
Government’s reform agenda.
155 The whole-of-government strategic sourcing review Accepted
being undertaken by the Government specifically The Government accepts this recommendation and
address the following issues: notes that the Review of whole-of-government
opportunities for greater cost savings from a more strategic sourcing has been completed and wave one of
commercial approach to procurement policies, implementation is currently underway. Joint
including greater use of contestability for standard sponsorship of the Procurement Taskforce rests with
supply arrangements the Public Service Commission and the Department of
administrative costs and burdens for agencies Housing and Public Works.
which may erode the benefit of whole-of-
government procurement policies
funding arrangements that provide appropriate
incentives to the Queensland Government Chief
Procurement Officer and agencies to efficiently
manage the costs and benefits of whole-of-
government procurement arrangements.
34 | | Queensland Government Response to the Independent Commission of Audit Final Report |
Queensland Government Response to the Independent Commission of Audit Final Report 35
36 | | Queensland Government Response to the Independent Commission of Audit Final Report |
Queensland Government Response to the Independent Commission of Audit Final Report 37
