Professor Peter Loney La TrobeUniversity/World Bank Institute/ Commonwealth Parliamentary Association Parliamentary Strengthening Seminar Beechworth, Australia. Feb 2007
Parliamentary Committee Scrutiny Of The Budget
Most Westminster style parliaments and many non‐Westminster style legislatures have some form of Estimates process for scrutiny of the annual appropriations but there are almost as many models as there are Parliaments. In most systems Parliament’s involvement follows the conventional Westminster form ‐ based on the principle that it is the Executive’s responsibility to frame the Budget, and the Parliament’s responsibility to authorise the expenditures. One exception to this is the Canadian model, introduced in 1994, which authorises the Standing Committee on Finance to undertake an annual Autumn public consultation on matters that Canadians believe should be addressed in the next budget In April 2006, the Canadian Parliament went further with the creation of a Parliamentary Budget Office.
Parliamentary Committee Scrutiny Of The Budget
Look at four models based essentially on the traditional Westminster role of post preparation and presentation scrutiny by the parliament WESTMINSTER
scrutiny is carried out by the eighteen Departmental Select Committees of the House of Commons Since 2002 supported by the Scrutiny Unit. No formal reference from the House to undertake their enquiry into the Estimates Given seven days to report to the House between the presentation of the budget documents, and the vote in the House.
Parliamentary Committee Scrutiny Of The Budget
WESTMINSTER (cont’d)
Departmental Select Committee reports on the Estimates are not automatically debated in the House Three days are allocated for the consideration of the Estimates The Government is required to respond to all Departmental Select Committee in the House within sixty days.
AUSTRALIA
Estimates scrutiny is a function of the Senate (Upper House) no pre‐presentation involvement of the Parliament in the budget process The Senate refers the Estimates statements, known as Portfolio Budget Statements to its eight Standing Committees All hearings of these Committees are required to be conducted in public Ministers are expected to attend
Parliamentary Committee Scrutiny Of The Budget
AUSTRALIA
Generally allocated four days in which to conduct hearings Expected that questions will be asked and answered at the time of the hearings, but matter s may be “taken on notice” Questions On Notice are deemed to be the property of the Committee and cannot be withdrawn Committee may schedule a further round of hearings to deal with Questions On Notice may receive support from the Auditor General’s Office Committees conducts a further round of hearings following the presentation of the Supplementary Estimates to the Parliament in November each year
Parliamentary Committee Scrutiny Of The Budget
AUSTRALIA (cont’d)
The Senate Legislation Committees are further charged with ongoing scrutiny of the performance of Departments and agencies
NEW ZEALAND
The New Zealand Select Committee system underwent major reform in 1985 in an attempt to strengthen the accountability of the Executive to Parliament They now have four roles:
Legislation Consideration and reporting of Petitions Inquiry Scrutiny
Parliamentary Committee Scrutiny Of The Budget
NEW ZEALAND (cont’d)
Following the introduction of the Budget into the House of Representatives the Estimates are referred to the Finance and Expenditure Committee which may conduct an examination of the Estimates or refer them to the relevant Committee Standard Estimates Questionnaire sent to all Departments and agencies six weeks prior to the Budget speech
asks for information which is not contained in the Budget papers, but is helpful to explaining the relevant Departmental vote
Committees may hold hearings and invite Ministers to attend to explain their spending plans and policy priorities
Parliamentary Committee Scrutiny Of The Budget
NEW ZEALAND (cont’d)
The Committees have up to two months following delivery of the Budget to report their enquiries to the House no provision for a separate minority or dissenting report The reports of the Committees are considered by the House prior to the Budget vote There is no requirement for a government response to the Estimates reports. The Committees may be supported in their Estimates enquiry role by the Office of the Auditor General under a developed procedure formalised in the 2002 Code of Practice for the Provision of Assistance by the Auditor‐ General to Select Committee Members and Members of Parliament
Parliamentary Committee Scrutiny Of The Budget
NEW ZEALAND (cont’d)
Supplementary Estimates are also referred to the Finance and Expenditure Committee
VICTORIA
The Victorian PAEC is unique in that it has been given the dual roles of audit and Estimates Has established procedures which see it adopting an extensive Estimates hearings and reporting process immediately following presentation of the Budget begins its preparation for the Estimates Hearings with the development of a Standard Questionnaire to all departments, which is required to be answered in writing
Parliamentary Committee Scrutiny Of The Budget
VICTORIA (cont’d)
Since 2000, the Premier, every Minister and the Presiding Officers of Parliament appear at the public Estimates hearings Committee practice is that questions must be addressed to the Minister Questions may be taken ‘on notice’ by the Minister during the hearing, and this then requires a written answer to be provided to the Committee later There is no requirement for the Committee to report on the hearings to the Parliament prior to the Appropriations vote but the Committee attempts to do so also conducts annual Supplementary Estimates hearings, in October and November at which departmental officers are asked to explain the previous financial year’s outcomes
Parliamentary Committee Scrutiny Of The Budget
VICTORIA
The Government is required to address all recommendations of the Committee by tabling a response in the Parliament within six months A further unique feature of the Victorian Parliament’s financial scrutiny regime is the involvement of the Auditor General in the Budget documents prior to its presentation in the Parliament
All of the models looked at above have been developed according to the practices and precedents of their own Parliaments, and all have their strengths and weaknesses. What they show is that while there is no single model for Parliaments to carry out their responsibility to hold Governments accountable, there is a strong understanding of the need to do so