The Committee was advised by the Department of Treasury and Finance that 'in projects undertaken prior to the introduction of the Partnerships Victoria policy there was no formal mechanism for assessing the impact of a project on the public interest'.217
The Partnerships Victoria policy requires all projects to undergo a specific public interest 'test', which has eight elements:218
1. effectiveness - is the project effective in meeting the government's objectives?
2. accountability and transparency - do the partnership arrangements ensure that the community can be well informed about the obligations of the government and the private sector partner, and that these can be oversighted by the Auditor-General?
3. affected individuals and communities - have those affected been able to contribute effectively at the planning stages, and are their rights protected through fair appeals processes and other conflict resolution mechanisms?
4. equity - are there adequate arrangements to ensure that disadvantaged groups can effectively use the infrastructure?
5. public access - are there safeguards that ensure ongoing public access to essential infrastructure?
6. consumer rights - does the project provide sufficient safeguards for consumers, particularly those for whom the government has a high level of duty of care, and/or are most vulnerable?
7. security - does the project provide assurance that community health and safety will be secured?
8. privacy - does the project provide adequate protection of users' rights to privacy?
The Department of Treasury and Finance further advised the Committee that the public interest test is comprehensive and is applied at a number of different stages in the project development process:219
We do an initial test to see whether they are likely to be passed for a project before we actually put up a funding submission. We do a full test before we release the project to the market, and then we confirm before the contract is signed that the contract fully caters for all public interest elements.
Partnerships Victoria Guidance Material, Public Sector Comparator, Technical Note continues explaining that 'the Treasurer is responsible for developing and overseeing the Partnerships Victoria policy'. In terms of accountabilities, however, the Committee noted that:220
Although ultimate responsibility for a particular project lies with the relevant portfolio department or agency, the Department of Treasury and Finance generally retains an integral role in the procurement process. This may take the form of a general facilitatory, advisory and oversight role, with the contribution of personnel, resources and cost information, including the process of construction of the public sector comparator. The Department of Treasury and Finance will also advise the Treasurer on financial and commercial exposures of the state.
Further, that:221
The extent of the Department of Treasury and Finance's role is determined on a project by project basis, but is influenced by the resources of the relevant portfolio department or agency, as well as the size, nature, complexity and importance of the project, and the resources of the Department of Treasury and Finance.
The guidelines also promote the appointment of external advisors to assist with the development of the public sector comparator.
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217 Department of Treasury and Finance, submission no.35, p.18
218 Department of Treasury and Finance, Partnerships Victoria Guidance Material, Practitioners' Guide, June 2001, pp.76-79
219 Mr G Maguire, Assistant Director, Commercial Division, Department of Treasury and Finance, transcript of evidence, p.10
220 Department of Treasury and Finance, Partnerships Victoria Guidance Material, Public Sector Comparator, Technical Note, June 2001, p.74
221 ibid.