Thank you Carmel for the kind introduction.
Id like to commend the work of the Institute of Public Administration Australia and the Australian Institute of Project Management for enhancing public administration in this country.The work you do doesnt always grab headlines but it is a vital role nevertheless.
Improving the delivery and implementation of government programs is at the core of the Better Government agenda I announced last year.
It is an agenda that is broad in scope.
And it is a task that requires ongoing focus.
It responds to the expectations of citizens in both policy and delivery.
And it reflects the standards we set for ourselves as a government.
Its a reform agenda that is all about the detail; methodically improving the systems within government to enable better government.
Fiscal context
Today Id like to outline how I see this agenda situated against the backdrop of the nations longer term fiscal challenges, and how the increased complexity of Government policy responses requires a renewed focus on implementation.
I will also touch on some of the tools that Government mainly through the Department of Finance have recently developed to support this task.
In the short term the Government is focused on returning the Budget to surplus and adhering to a strict fiscal discipline.
It is a fiscal discipline we laid down during the GFC indeed it was part of our response.
It is a discipline to which we are holding, notwithstanding the task is more difficult given the obvious consequences of a weaker global outlook, a softer domestic economy as well as the persistent legacy effects of the GFC on revenues.
However, amidst the day-to-day commentary on matters economic, we ought not lose sight of our medium and long-term fiscal challenges.
And this is not just a numerical challenge.
As a Labor Government we understand the importance of social services and a strong safety net.
We also understand these must be both appropriate and sustainable.
Delivering this in the years ahead requires strong Government finances over the medium to longer term.
This was the Governments perspective when we assembled experts and community representatives for the recent tax forum in Parliament House.
The fiscal paper we released prior to the forum built on the 2010 Intergenerational Report highlighting the long term pressures on the Commonwealth budget.
Health care is a prime example where we see real spending triple from 2009-10 to the middle of the century.
And this is just one function of Government but it will put pressure on all other expenditures.
The long term fiscal challenge needs to inform both the decisions we take as a Government and the manner in which they are delivered.
The Government has taken this approach in recent budgets.
We have taken a number of decisions tough decisions aimed at meeting the near term fiscal challenge as well as putting the budget on a more sustainable footing for the longer term.
Phasing out the dependent spouse tax offset was a decision taken in the 2011-12 Budget that delivered savings in the near term but will also have a considerable participation effect removing barriers to employment and strengthening the revenue base.
These decisions have been matched by the ongoing task of improving the efficiency of Government.
From coordinated procurement, to reduced travel and consultancies the Government has driven efficiencies in our operations.
These efficiencies have made a healthy contribution to delivering on our fiscal objectives.
And we will continue to pursue efficiencies in our operations.
Better Government
And it is this fiscal context that provides one of the key drivers of improved program delivery and implementation.
As community expectations pull our budget in one direction, the ageing of the population will be pulling in the other.
The increased need for healthcare services will come up against a narrowing revenue base.
To be able to deliver a high level of care even with increased funding we will need to maximise the effectiveness of expenditure.
Again, this is not just a matter of cost cutting; it requires new policies and programs that will deliver high quality care.
E-health is an example where moving records online reduces the transaction costs of care; it improves the information available to medical staff achieving quicker diagnosis.
It also reduces instances of mistakes, and improves patient outcomes.
And this will only be boosted with the roll out of the NBN.
Indeed, the NBN is likely to be the backbone of substantial reform in the way Government delivers programs.
In this context the Government also needs to be sure that new programs are meeting their objectives that implementation matches intent.
This is at the heart of the better government agenda.
This goes beyond the often one dimensional efficiencies and general budget tightening.
These are important but over the longer term we need to be sure that our delivery is up to the increasingly complex tasks, with increasingly tight budgets.
Good implementation is good for the budget.
It requires innovation.
It requires responsiveness.
It can often require a new perspective.
Change in the community necessitates innovation in the way we deliver programs.
Innovation should be a core public sector competency.
With increasingly complex and interconnected policy problems before Government, whether it be aged care or indigenous health outcomes, the existing policy prescriptions may no longer be valid.
But hand and in hand with innovation is the need for effective and efficient implementation.
This is vital.
That is why the Governments Better Government agenda aims to:
- encourage innovation and
- focus attention on efficient and effective implementation.
Managing these tensions is central to the Governments Better Government agenda.
It requires measured analysis, and rigorous assessment.
It requires an eye to effectively managing risk.
Better Implementation
So Id like to take this opportunity this morning to outline three measures that Government has put in place to strengthen program implementation and delivery.
These processes assist Cabinet in decision-making, they assess the preparedness of agencies, and they track a projects implementation once established.
These policies will provide additional assurance to Government and agencies as new policy decisions are taken.
They will ensure that the right capabilities are in place to see Government programs implemented successfully.
They bring real world discipline to new policy design, and will give increased confidence to Government that a good policy will be a well delivered program.
In general, the public sector does a good job of delivering and implementing the Governments policy objectives.
There is a high level of confidence in the delivery of programs year in, year out.
But there is always benefit in strengthening existing arrangements.
This includes bringing to the fore risk assessments at the time of decision making.
The recently introduced Risk Potential Assessment Tool assists agencies to identify, assess and communicate the potential risk of a proposal to ministers before seeking Cabinets agreement.
This process of self assessment is an important tool in flagging implementation issues and providing an opportunity for changes to be made to better achieve the Governments objectives.
Another key theme we are emphasising through the Better Government agenda is the use of independent assurance and advice.
While self assessment is important, independent advice can provide additional confidence in a programs successful implementation.
This is not a comment on the quality of advice from Departments and agencies but rather recognition that advice from external parties can often value add.
In the context of dealing with the policy challenges before us, good assurance provides an independent assessment of whether the elements of successful program delivery are in place.
In itself independent assurance does not deliver a program, but it can identify and help mitigate any risks to successful delivery of a program.
It can boost confidence or the certainty that program objectives can be delivered as intended.
Assurance reviews provide an important feedback loop to decision makers to help them make better informed policy choices.
This can reduce the causes of program failure, promote the conditions for success and increase the chance of delivering the required outcome cost-effectively.
It helps ensure program delivery is disciplined and highlights where risks arise.
It utilises and promotes the use of better practice.
The use of highly skilled and experienced independent reviewers (many of whom are drawn from the senior APS ranks) increases the confidence in implementation.
The Government has introduced a number of assurance mechanisms which build greater levels of confidence in the efficiency and effectiveness of implementation utilising external expertise.
These policies provide assurance of an agencys capacity prior to implementation and then track progress as projects are rolled out.
The Implementation Readiness Assessments are five-day targeted reviews which focus strategically on key areas in determining agency capability and preparedness in planning to implement a proposal.
They provide agencies with the opportunity to gain independent assurance on how well practical delivery issues are being addressed in preparing for implementation.
The independent assurance derived from the IRA review process also assists with the Governments consideration of agencies capability and preparedness to implement and deliver in relation to certain high risk proposals.
The involvement of senior agency managers in the role of the Senior Responsible Official during implementation reviews has established systems and procedures that will provide greater certainty around the implementation of programs and projects.
This confirms our experience that the implementation of policy is more likely to succeed if there is strong executive-level support for the delivery processes of the policy.
The Gateway Review Process are five-day targeted reviews but the distinguishing feature is that the purpose of the review is to assist the senior officials to achieve their accountabilities and responsibilities and deliver project or program objectives.
Gateway reviews demonstrably strengthen the oversight and governance of major projects and assists agencies to deliver agreed projects in accordance with the stated objectives.
Concluding Remarks
While it is unlikely improving implementation is going to make the headlines it is a vital task that sits at the core of good government.
As the challenges facing governments increase in complexity, the need for robust and methodical implementation becomes vital.
As Finance Minister this is particularly relevant, as the demographics of Australia will increase the burden on the next generation of tax payers.
We will need to better deliver the key services that people expect of government.
This will require innovation and new approaches.
Thank you.
ENDS
