Dr KEMP (Education, Training and Youth Affairs; Minister Assisting the Prime Minister for the Public Service) (9:01 PM) —I would like to take this opportunity to make some final comments on the Public Service Bill 1999 . First of all, I thank all members for their contribution to this debate. What we are achieving here today is a very good outcome. It is a very important and significant step forward in the reform of the Public Service. It is a good outcome for government, a good outcome for public servants and a good outcome for the Australian people.

The Public Service Bill represents the biggest overhaul and reform of the Australian Public Service in more than 75 years. The bill as originally proposed was described by Alan Kohler as `one of the great pieces of government employee legislation—simple, clear and powerful.' The Public Service Bill will move the Australian Public Service away from the constraints of a lengthy and prescriptive act to a new framework where employment powers are held directly by agency heads. It reflects the contemporary realities of the Australian Public Service and will provide a sound basis for moving into the new millennium. It is less than one-fifth of the size of the old act. It has been totally rewritten in plain English, making it simpler and easier to follow.

The bill creates much greater flexibility to respond to changing needs by replacing detailed prescription with principles. The bill provides a sound basis for the enterprise based approach of the Workplace Relations Act 1996 by giving agency heads full power to engage staff as well as the power, subject to the workplace relations framework, to determine their remuneration and terms and conditions of employment.

The government's reforms aim to address the problems of overcentralisation, excessive prescription in the management and procedures of the workplace, inadequate focus on the customer and failure to manage to world's best standards. The government remains committed to an Australian Public Service which embraces the best practice in contemporary management and is able to benchmark its performance against other sectors both in Australia and overseas.

The government, and indeed the Australian public, expects the APS to be a modern and efficient employer. We are therefore seeking reforms which enable APS agencies and their staff to develop the most appropriate arrangements for the management of each agency and, consequently, to contribute to a forward looking and high performing organisation.

In the development of this bill, the government has sought reasonable compromise and bipartisan support. The government recognises that significant legislative reform is vital, so in the spirit of forging ahead with reforming the APS, we have continued to press for new legislation to replace the Public Service Act 1922. It was in this spirit that we talked to the opposition about ways to move forward. The government acknowledges that there has been some constructive consideration and negotiation on the issues, and that the ALP has not pressed many of its original amendments and has reconsidered others.

The government would have much preferred the bill in its original form—for its brevity, its simplicity and its focus on principles. The amendments, while not significantly altering the substance of the original bill, contain in our view some unnecessary detail and prescription. The bottom line, however, is that at no point is the amended bill more restrictive than the present arrangements and it maintains or enhances the government's current position as an employer and manager. Importantly, the amendments to the bill have been agreed to by both the government and the opposition in the interests of progressing tangible change.

The government has been prepared to accept amendments. We have not achieved everything we wanted. We would have preferred different practices in some areas. Nevertheless, we believe the bill in the form in which we expect it to be amended represents a significant step forward in the organisation of public administration in this country. I would like to say that the government has appreciated the approach taken by the opposition in discussions on the proposed content of the bill. I appreciate that this has been a difficult issue within the Labor Party, and the government recognises that. On previous occasions when the original bill was presented, it was made clear by the opposition that much of the bill's content was not negotiable. It would be fair to say that a bipartisan realisation has been reached that it is in the interests of government as a whole to achieve an employment framework that capitalises on the real potential of our public sector.

I would like to acknowledge and thank a few people whose contributions have been instrumental in achieving today's outcome. I would first of all like to thank my opposite number in the opposition, Senator Faulkner, and his senior adviser, George Thompson. I would like to acknowledge also Dr Peter Shergold, as the then Public Service Commissioner and now Secretary to the Department of Employment, Workplace Relations and Small Business, who was involved from the development of the reform process and the Public Service Bill. I would like to acknowledge the work of the Public Service Commissioner, Helen Williams, and the Deputy Public Service Commissioner, Peter Kennedy, whose expert advice has been essential in reaching the agreements on the amendments that we now have. There have been many staff in the Public Service and Merit Protection Commission and the Department of Employment, Workplace Relations and Small Business who have been involved in this legislation over a very long period of time, many from the beginning of the process some three years ago. I would particularly like to single out Jeff Lamond, who has been tireless in monitoring the development of the process and providing advice, and Kate Bosser who, again, has been associated with the process for a long time and whose expert advice has been greatly valued.

I would like to thank my adviser on public service matters, Clayton Ford, who has been working on the bill now for some two years. I think that both Senator Faulkner and I would probably acknowledge that, without the assistance of people in our offices who have become really expert in this legislation, we would not have been able to bring this process to what I believe will be a successful completion. I want to also acknowledge the very real and significant achievements of the Australian Public Service in pursuing change and responding to the challenges offered by the new environment over the last couple of years. I know that that will continue with the implementation of the new act. Indeed, the very degree and speed of that responsiveness is a clear demonstration of the quality of the Public Service and its professionalism, and there will be a very positive reaction throughout the Public Service to the final passage of this legislation, which will provide clarity and a framework within which, I know, a great many in the Public Service are looking forward to working.

The principal areas where amendments have been agreed include a number designed to enhance transparency and accountability. Any direction issued by the Prime Minister to agency heads must be published in the Commonwealth Gazette. Where the Merit Protection Commissioner is not satisfied with any agency's response to a report on a review, the Merit Protection Commissioner may report on the matter to the agency minister and either or both the Prime Minister or the presiding officers for presentation to the parliament.

The amendments also deal with certain employment matters. An agency head will not be able to terminate the employment of a senior executive service employee unless the Public Service Commissioner has issued a certificate stating that all relevant requirements have been satisfied and the commissioner is of the opinion that the termination is in the public interest. For each remuneration determination made by the minister responsible in respect of salary for the Public Service Commissioner, Merit Protection Commissioner, secretary or head of an executive agency, the minister will be required to seek the advice of the Remuneration Tribunal and to take that advice into account. In addition, each determination made by the minister must be published in the Commonwealth Gazette.

The government is well aware of the need to move the matter forward in order to achieve further progress in improving public administration. We have pursued negotiations because of the importance of achieving legislative reform in order to achieve essential change. This bill is a vast improvement on the 1922 legislation in terms of both content and language. For some time, the government has been critical of the current act's highly complex and technical language, which promotes a legalistic approach to managing people. The bill is altogether more accessible and understandable. It will provide a clear legal framework for an APS employment that achieves an optimal balance between improved accountability and devolved responsibility so as to maximise the efficiency and effectiveness of the APS. It will guide the Commonwealth system of public service into the next century and enable the APS to achieve its full potential.

Significantly, the bill also articulates the distinctive character of Australia's public service and parliament's expectation of it in a way that is absent in the 1922 act. It sets out the fundamental values of the APS and enshrines and protects them through primary legislation. The bill clearly sets down the important values and culture the parliament wants in the Australian Public Service and the role, powers and accountability of agency heads and their relationship to ministers in a clear and public way. It is a clear statement to those within the APS and to the Australian people of the conduct that is expected of public servants and enhanced evaluation through significant new inquiry and reporting powers for the Public Service Commissioner.

The bill explicitly acknowledges that the APS is to be apolitical, fulfilling its functions in an impartial, non-partisan and professional manner. For the first time, legislation will prevent ministers becoming involved in individual staffing decisions. Importantly, it provides for the APS to be openly accountable for its actions within the framework of ministerial responsibility to the government, the parliament and the Australian public. The government recognises that the evaluation of reform is crucial to maintaining and upgrading its effectiveness. Accordingly, there will be ongoing review of the operation of the new legislation, including its implementation, and where problems are identified these will be rectified through amendments.

This Public Service Bill is a very important piece of legislation. It sets a firm foundation for a high performance APS. It provides the groundwork for the APS to achieve its full potential. The agreed package will allow for a dynamic and flexible public service, which is vital for good government and effective delivery of quality services to the public. We are all aware of the extent of the challenges, and I look forward to the achievement of the reform objectives for the benefit of all Australians.

Question resolved in the affirmative.

Bill read a second time.