• Economic Audit

    Economic Audit Committee | Terms of Reference | Making a Submission | Further Information

    On 27 October 2008, the Treasurer announced the establishment of the Economic Audit Committee (EAC) to conduct a wide-ranging review into the operational and financial performance of the Western Australian public sector. The objective of the review is to ensure value for money for taxpayers – that is, government is involved in the right activities, they are being delivered for the least cost, and they contribute to the achievement of improved outcomes for Western Australians.

    Economic Audit Committee

    The EAC is a six-member panel of senior economic and public sector management specialists that brings together an exceptional mix of experience in financial management and government administration. The EAC includes:

    • Prof. Peter Shergold AC – former Secretary of the Department of the Prime Minister and Cabinet
    • Mr John Langoulant – Chief Executive of Australian Capital Equity
    • Ms Catherine Nance – Partner and Actuary of PricewaterhouseCoopers
    • Mr Timothy Marney – Under Treasurer of the Department of Treasury and Finance
    • Mr Peter Conran - Director-General of the Department of the Premier and Cabinet
    • Mr Mal Wauchope – Commissioner of the Public Sector Commission.

    The EAC is supported by the Economic Audit Secretariat, which has been established within the Department of Treasury and Finance.

    Terms of Reference

    The EAC’s Terms of Reference for the Economic Audit include:

    1. A review of recent government expenditure to determine the effectiveness of budget outlays during the boom years of the Labor Government.
    2. A transparent and comprehensive assessment of the financial performance of state departments, authorities and commercial entities, with a focus on identifying potential savings from bureaucratic waste and mismanagement.
    3. An examination of the current structure of government agencies to determine whether changes are warranted to better support the efficient and effective delivery of government services.
    4. An evaluation of the effectiveness of existing performance metrics and options for greater transparency and accountability through improved public reporting.
    5. An examination of public sector management and service delivery issues, including procurement, corporate services and asset management.
    6. Options for regulatory reforms to increase efficiency.
    7. A review of existing state taxes and recommendations for reform.

    The above Terms of Reference have been extended by Cabinet to include the following:

    a) Further advice on a mechanism to ensure that government’s desired outcomes and priorities are communicated to agencies and embedded in government and agency level planning, reporting and performance measurement, noting the government favours a broad flexible approach that better accommodates the continually changing landscape within which government operates

    b) Further advice in relation to issues identified in the Committee’s First Report including, but not limited to:

    • The structure of government, in particular how best to align departments and agencies to ensure greater consistency for collaborative policy and operation
    • Workforce management
    • The principles of collaborative government
    • Asset ownership and management
    • The introduction of increased competition and use of the third sector to deliver government outcomes
    • The role of the State in the land development process
    • Reform of government transfer payments.

    c) Development of a micro-economic reform agenda for government

    d) The recommendation of an implementation plan (including timeframes and accountabilities for delivery) to support the Stage 2 recommendations.

    Feedback and submissions

    The consultation phase of the Audit process has now ended.  The closing date for all feedback and submissions was 31 August 2009.

    Following consultation and receipt of submissions, the Committee is scheduled to deliver its Final Report to the Government in October 2009.

    While every endeavour will be made to ensure that suggestions are treated in a confidential manner, respondents are reminded that any information provided may be subject to disclosure under the Freedom of Information Act 1992.

    The contact telephone number for all enquiries is 08 9222 9898.

    Further information

    For further information on the Economic Audit, please contact:

    Simone Spencer
    Economic Audit Secretariat
    C/- Department of Treasury and Finance
    197 St Georges Terrace
    PERTH WA 6000