Abbott announces audit into government



A federal Coalition government will set up a special commission to review Commonwealth public service operations and cuts costs, Opposition Leader Tony Abbott says.


Mr Abbott made the announcement during a speech to the Victorian Employer’s Chamber of Commerce and Industry in Melbourne today.

A Coalition government would take “specific practical steps” to manage the economy better and make it stronger, he said.

It would also pursue “achievable” plans for stronger communities, a cleaner environment, more secure borders and the infrastructure of the future.

But the centrepiece of Mr Abbott’s speech was the announcement of the commission of audit, as part of an overall goal to reduce the cost and complexity of government and see what can be done better and more cost effectively.

“My basic message to Australians today is that securing our future depends more on strong citizens than on big government,” Mr Abbott said.

“That success depends upon our industry, not just on our geography, and that our destiny will be secured more by hard work than by good luck.

“It would be dangerous complacency to think that economic stagnation only happens to other countries.”

It has been 16 years since the Commonwealth last conducted a top-down independent review of public sector spending.

The last commission of audit was chaired by Professor Bob Officer in 1996, following the election of the Howard coalition government.

“It’s likely that a contemporary process might identify scope for vast improvements in the functions, efficiency, and cost of government without compromising its core business,” Mr Abbott said.

“After beginning the carbon tax repeal process and giving the navy new instructions for responding to illegal boats, establishing a commission of audit will be an incoming Coalition government’s most urgent task.”

Mr Abbott envisaged the commission would report within four months.

“That way, the operations of government can be improved and streamlined while a new government has maximum political capital to take hard decisions,” he said.

Under the Coalition, the commission would not replace the expenditure review committee process, which vets new and existing program spending.

It would supplement the work of Liberal Senator Arthur Sinodinos’s deregulation taskforce to ensure a Coalition government delivers businesses at least $1 billion a year in red-tape reduction cost savings, Mr Abbott said.

“If we are serious about building a more productive economy, it’s vital to ensure that the Commonwealth and its agencies are only doing what they really have to do and doing it as efficiently as they reasonably can,” he added.

The Commonwealth government accounts for almost a quarter of Australia’s gross domestic product output.

Some of the areas the commission might look at would be health, education and defence materiel.

Mr Abbott questioned whether the health department needed 6000 staff when the Federal Government did not run any medical facilities, such as a hospital.

He asked if the education department needed all 5000 current staff when it didn’t operate school, or if the Defence Materiel Organisation needed 7000 people when similar organisations in other countries, such as the UK, with larger armies had fewer staff.

The Coalition has already committed to abolishing the Department of Climate Change and rolling its essential functions into the Department of the Environment.

“There is a multitude of government programmes that don’t seem to involve the provision of any tangible services to the public or which involve funding other bodies to do what they should be doing anyway,” Mr Abbott said.

“These could also be candidates for review by the commission of audit.”

Mr Abbott also repeated his plans to scrap the mining and carbon taxes.

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