1.4 The Public Works Committee is one of the oldest investigative Parliamentary committees, having been established in 1913. It provides Parliamentary scrutiny where large sums of public funds are being expended by government departments and agencies on capital assets. The Department of Finance and Deregulation (Finance) administers the Act and is responsible for working with agencies to ensure that any work estimated to cost more than the threshold amount of $15 million is referred to the Committee.
1.5 The Act provides that a public work, for which the estimated cost exceeds the threshold amount requiring referral to the Committee, may not be commenced unless either such a referral has occurred or certain specific conditions are met, namely that the work:
(a) is urgent;
(b) is for defence purposes and referral to the Committee is determined to be against the public interest (for example, for security reasons); or
(c) is repetitive (for example, general maintenance work).11
1.6 The agency that is carrying out or contracting such public works prepares a submission to the Committee. The submission includes information on why the work is necessary, other options considered, estimated cost, and any plans or drawings that will help the Committee understand the purpose and scope of the work.
1.7 Subsequently, the Committee holds a public hearing in relation to public works projects referred to it. Members of the Committee intending to attend the hearing on a particular project will generally inspect the proposed construction site prior to the hearing.12 At the public hearing, officers from the sponsoring agency appear before the Committee and any organisation or person who has sent in a submission to the Committee on the particular project is usually invited to give evidence. Private hearings, involving the Committee members and the agency, are also held to allow discussion about cost details of the work, and may include sensitive tendering information.
1.8 After evidence has been collected, the public hearing held, and responses made to any questions on notice, the Committee prepares a report to present to Parliament. The Committee can make any recommendations it sees fit within the bounds of the Act, and can recommend the public work does not proceed. The Committee's preference is always to work with the relevant agency to reach an agreement.13
1.9 Once the report is tabled in Parliament, a motion is made by the Minister for Finance and Deregulation (or delegate) to proceed with the work. This is the 'expediency motion' and generally supports the Committee's recommendations. The Act provides that work may not commence on a public work referred to the Committee until the House of Representatives has 'resolved that it is expedient to carry out the work.'14
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11 See sub-section (8) of section 18 of the Act. There is no guidance or examples of what constitutes an urgent, defence purpose or repetitive work in the Committee's Manual of procedures for departments and agencies, although it does note that when an exemption is sought officers of the agency should attend a meeting of the Committee to explain the background to, and need for, the exemption.
12 The public hearing is usually conducted either at or close to the site, following the Committee members' inspection.
13 The Committee Secretariat advised the ANAO that the Committee will work with the agency to resolve issues rather than recommend a public work does not proceed.
14 This requirement is set out in subsection (7) of section 18 of the Act.