The State Government has initiated its response to the Special Inquiry, with an implementation team tasked to deliver on the recommendations and findings handed down in the final report.
The recommendations of the Special Inquiry are broadly endorsed by the Government, with the exception that Royalties for Regions funding will remain a hypothecated account and the $1 billion expenditure cap per year be retained.
The implementation of the recommendations will be driven by Ministers through the Rebuilding the Public Sector Reform program. Four stages of implementation, identified by State Cabinet, will address the key recommendations and findings.
The findings of the Special Inquiry, together with the Service Priority Review, forms the basis for further reform that will be delivered through an integrated strategy by the implementation team.
A breakdown of the four stages of changes are listed below, including the seven key areas of focus that will be acted on in direct response to the Special Inquiry.
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Stage 1: Recommendations already implemented
- The transfer of the Strategic Projects function to the Department of Finance.
- The requirement for agencies to adhere to the 10-day rule for Cabinet submissions to ensure adequate consideration of proposals by Cabinet and relevant departments.
- Departments must consult with Treasury early in the process of preparing Cabinet Submissions with financial implications for the State.
- All submissions with a financial impact for the State must be submitted through the Expenditure Review Committee. No submission with a financial impact should be allowed to go to Cabinet without an Expenditure Review Committee decision.
- The establishment of the following groups and committees to encourage greater cross-sector, industry and community collaboration:
- Public Sector Leadership Council
- Directors General working groups
- Cabinet subcommittees, for example, the Jobs and Economic Diversification Cabinet subcommittee and the Community Safety and Family Support Cabinet subcommittee
- State Industry Consortia (Creative Industries, Tourism, International Education, Defence Industry, Aquaculture, Agriculture).
Royalties for Regions
- Implemented a requirement for all Royalties for Regions decisions to go through the ERC to strengthen governance and accountability.
- Removal of all large, unallocated ‘buckets’ of funding.
- Fully committing the program across the forward estimates to specific programs and election commitments, which significantly reduces the number of new programs requiring approval and therefore allows time for proper investment planning.
- Instilling a culture of value for money rather than maximising expenditure.
- Integrating the Royalties for Regions budget within the normal State Budget cycle.
- Established a closer working relationship between the Department of Treasury and the Department of Primary Industries and Regional Development (DPIRD).
- The transfer of Regional Development Commission staff to the Department of Primary Industries and Regional Development.
Stage 2: Recommendations already underway
- The establishment of Infrastructure WA.
- Ongoing Machinery of Government changes to streamline government functions and departments.
- The establishment of the Public Sector Reform Unit in the Department of the Premier and Cabinet to provide reform implementation coordination and support.
- The establishment of cross-departmental working groups, for example, the Justice Planning and Reform Committee and the West Pilbara Interagency Working Group.
- The establishment of Steering Committees for major projects to strengthen governance and accountability, for example, the METRONET Steering Committee.
- Models of working which encourage Directors General and departments to work in a more collaborative manner.
- Review of the use of Temporary Personnel Services Common Use Arrangement across government.
Stage 3: Recommendations to be implemented
Royalties for Regions
- Maintain the Royalties for Regions program with a defined strategy, plan and set of priorities. Noting however, that while the Special Inquiry recommended the removal of the hypothecated nature of funding, this method of funding is to be retained.
- Ensure Royalties for Regions projects are planned and managed in accordance with the Strategic Asset Management Framework.
- Apply the same financial processes and disciplines through the Department of Treasury and ERC to Royalties for Regions projects, consistent with other government funding decisions.
- Develop of a full suite of economic and social data at a regional level to provide the evidence base to guide decision-making.
- Develop a formalised program evaluation framework.
Transparency and Accountability
- Develop a transparency framework for reporting details of major projects to the public.
- Extend the powers of the Auditor General to enable access to cabinet documents and documents subject to legal professional privilege.
- Develop guidelines for the identification and disclosure of information, which is ‘commercial-inconfidence’.
- ERC to regularly review Major Projects.
Project Management
- Establish a Central Project Management Office for major projects to:
- Standardise reporting requirements, including risk analysis;
- Provide guidance, tools and support to ‘works’ agencies to build capability and ensure consistency;
- Report quarterly on the progress of major projects to ERC;
- Build capability across the sector.
Government Trading Enterprises (GTEs) and Public Corporations
- Introduce legislation to standardise and strengthen the governance and oversight of GTEs.
- Government to direct GTE boards to adopt higher standards of accountability and reporting on the progress of major projects.
- Clarify the roles of the Public Utilities Office and the Economic Regulation Authority.
- Review the requirements on GTEs to produce annual Statements of Corporate Intent and Strategic Development Plans and the content of those statements.
Transport Portfolio
- Endorse greater coordination between the Department of Transport, Main Roads WA and the Public Transport Authority, and rationalise and remove duplication in ‘back office’ functions.
- Consult with stakeholders and the community in regards to further amalgamations in the longer term.
Public Sector
- Foster a more collaborative working relationship between central agencies which supports line agencies and GTEs to enhance their skills and capabilities.
- Develop common standards for business cases to be applied across government.
- Establish a centrally-coordinated public sector graduate program.
Cabinet
- Cabinet to develop a plan to provide strategic direction to the public sector and assist in the establishment of investment priorities. This should include direction and priorities in the regions.
- Provide information to Cabinet on project management frameworks, business case standards and risk analysis to help inform investment decisions and to help identify key risks.
- Ensure all Cabinet Submissions are consulted across agencies and that those with a financial implication are first presented to ERC after obtaining sign-off from the Department of Treasury.
- Cabinet agendas need to include periodic review of the State’s key financial and legal risks, and the progress of major projects.
- The Cabinet Handbook will be updated to reflect these arrangements.
Stage 4: Recommendations requiring further consultation
The timing and detail of the implementation of other recommendations will be considered as part of the Rebuilding the Public Sector Reform program. This will include ERC and Cabinet consideration of the Budget, structural reform and legislative reform required for implementation. This will include but is not limited to recommendations including:
- A single Procurement Act;
- The establishment of Parliamentary Budget Office; and
- The establishment of a contract risk register and a litigation risk register