42/2008
9 December 2008
Lindsay Tanner, Minister for Finance and Deregulation, today announced the Rudd Government’s reforms to the administration of grant programs.
The reforms will apply to all Australian Government departments and agencies and will improve decision making, transparency and accountability around the allocation of grants.
These changes add to the Government’s Operation Sunlight reforms aimed at enhancing Budget transparency.
Lindsay Tanner said: “It is critical that we improve practices in the administration of grants across the Australian Government to ensure better outcomes for taxpayers and as part of our ongoing reform of government administration.
“The Government intends to put an end to what has clearly been a systemic problem with the administration of grants over the last decade, culminating in the ANAO’s highly critical report on the administration of the Regional Partnerships Program, published in November 2007.”
There are three key elements to the reform agenda for grant programs.
Firstly, the Government will develop and publish a comprehensive policy framework for grants administration. These new Commonwealth Grant Guidelines will provide clear rules and guidance to Ministers and government agencies.
An important means of improving the efficiency of grant administration will be to eliminate unnecessary processes and cut red tape.
Lindsay Tanner said: “The new guidelines will promote the consistent, transparent and accountable administration of grants across the Australian Government. My department will develop the guidelines over the coming months in consultation with other government agencies and they will take effect from 1 July 2009.”
“A common criticism of the administration of grants has been the assumption that the same approach will suit all circumstances, regardless of the scale or purposes of the grant in question or the performance record of the grant recipient.
“The new framework will encourage Australian Government agencies to ensure that grant programs are fit for purpose. That is, key design features and related processes are commensurate with the scale, nature, complexity and risks involved in the program.”
The new guidelines will also be underpinned by a package of regulatory changes. The new regulations will make it a legal requirement for Ministers and government officials to follow the new guidelines.
There will also be a legal requirement for Ministers and officials to record the basis on which they are satisfied that approving particular grants is an efficient and effective use of public money. This decision also responds to a key recommendation in the ANAO’s audit of the Regional Partnerships Program, released in November 2007.
Ministers will also be required to advise the Minister for Finance and Deregulation whenever they approve individual grants to organisations in their own electorates.
The third key element of the reforms establishes mandatory public reporting requirements in the interest of greater transparency. This means from 1 January 2009, agencies will be required to publish the details of individual grants on their website.
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| Media Contact: | Website: |
|---|---|
| Nardia Dazkiw - 0418 144 690 | www.financeminister.gov.au |
