Our Purpose, Objectives and Values

The Chief Minister and Treasury Directorate's (CMTD) stated purpose was to lead the public sector and work collaboratively both within government and the community to achieve Government outcomes.  To accomplish this, the Directorate set the following strategic objectives:

• building coordinated and integrated policy development and service delivery across government;
• supporting informed decision-making by government;
• maintaining the right workforce;
• improving satisfaction with community engagement;
• achieving a budget operating surplus;
• maintaining a AAA credit rating; and
• maintaining net financial liabilities within the range of AAA rated jurisdictions.

CMTD adopted the ACT Public Service values of Respect, Integrity, Collaboration and Innovation.

Our Role

The Directorate provided strategic policy advice and high level support to our principal stakeholders, the Chief Minister, Treasurer, and Minister for Workplace Safety and Industrial Relations, on policy development, service delivery and whole of government issues.

The Director-General of CMTD, as Head of Service chaired the ACT Public Service Strategic Board which provides whole of government leadership to the ACT Public Service (ACTPS).

As a central agency, a key focus was the oversight of the implementation of ACT Government priorities and the provision of advice and direction across the ACTPS.  This included a specific role in areas such as financial and economic management for the Territory, sustainability policy alignment, demographic and regional policy and relationships, managing the ACT's intergovernmental relationships and supporting the Chief Minister's role on the Council of Australian Governments (COAG).

The Directorate led preparation of the annual budget and whole of government financial reports; provided advice on financial management, economic issues and revenue policy; and supported machinery of government and Cabinet processes.

The Directorate was responsible for strategic planning and direction on public sector standards, including across government employment, workforce culture and capability, industrial relations, and the promotion of transparency, ethics and accountability.  The Directorate also had responsibility for the enhancement of workplace health and safety and private sector workers' compensation through policy development, advice to the Government, and coordination of Territory consultative bodies.

The Directorate was also responsible for whole of government communications, the provision of public affairs advice and the coordination of the compliance with campaign advertising legislation and guidelines by all directorates.  This included work to enhance communications and community engagement across government, and to seek the community's views as part of decision-making processes.

In undertaking the above work the Directorate also supported and assisted our other key stakeholders:

• the Cabinet and the Government;
• the ACT Legislative Assembly;
• the ACT community; and
• ACT government directorates, agencies and authorities.

Our Structure

The Director-General CMTD was also the Head of Service and in this role chaired the Strategic Board which provided whole of government leadership and strategic direction to the ACTPS.  The Strategic Board membership comprises Directors-General from all ACTPS Directorates, the Under Treasurer,  the Commissioner for Public Administration, and the Deputy Director-General, Policy and Cabinet CMTD as secretary.

The CMTD included Treasury with four divisions: Economics and Financial, Finance and Budget, Expenditure Review, and Infrastructure Finance and Advisory, all reporting through the Under Treasurer to the Director-General.  The three other Divisions within Chief Minister and Treasury Directorate, Policy and Cabinet; Workforce Capability and Governance; and Culture and Communications; reported directly to the Director-General.  

The Executive Management Group comprised the Director-General, the Under Treasurer, the Deputy Director-General Policy and Cabinet, the Deputy Director-General Workforce Capability and Governance, Director Communications, Engagement and Protocol, Director Strategic Finance and Director Corporate Management, and met monthly to review corporate governance issues, including finance and human resource matters. 

Below is the Directorate's Executive Structure as at 30 June 2014. 

Further information on each area is included in Section C.1 Internal Accountability.

The Directorate's 2013-14 Corporate Plan set out the planning framework and strategic objectives. The Corporate Plan aligned with the ACT Government's priorities.  Operational planning and resource allocation, setting of objectives, financial performance and accountability indicators was also undertaken and communicated through documents including the annual Budget Papers, Business Unit Plans and Staff Performance Plans.

Our Performance

The Directorate established the following strategic objectives for 2013-14.

Building Coordinated and Integrated Policy Development and Service Delivery across Government

The effective delivery of the Government's policy and objectives requires coordination, cohesion and alignment of efforts across the ACTPS.  The Directorate led and coordinated whole of government strategy, policy development and service delivery.

Measures to reduce red tape and regulatory reform are a feature of the Government's reform program.   The Regulatory Reform Team was established within the Directorate at the start of 2014 to coordinate regulation and process reform efforts across government, including the development of accountability indicators to reduce red tape and deliver tangible benefits to business and the community.

During the year the Infrastructure Finance and Advisory Division was established to coordinate and support across government, the selection, funding, implementation, delivery and whole-of-life transaction management of complex and major infrastructure projects.  Work to date has included the development of The Partnerships Framework for the delivery of major infrastructure projects.

CMTD chaired the National Disability Insurance Scheme Inter-Directorate Committee that met regularly to monitor the issues identified in progressing this reform and provided a mechanism for reporting outcomes from the various working groups to directorates.  The Directorate also led the negotiations on the Bilateral Schedule Agreement, which provides the foundation for the trial site in the ACT.

The Directorate coordinated the ACT Government's efforts in relation to the Royal Commission into Institutional Responses to Child Sexual Abuse, including:

• coordinating replies to notices to produce;
• leading a government working party which supports the Royal Commission as it relates to the ACT; and
• coordinated the ACT Government's input into issues papers prepared by the Royal Commission.

The Directorate also coordinated consultation and undertook the lead role on a number of internal reviews and projects aimed at ensuring the public service operates as efficiently and effectively as possible.  These included:

• reviewing and developing new public sector legislation;
• finalising the ACT Public Service Administrative and Related Classifications Enterprise Agreement 2013-2017; and
• undertaking a service wide assessment of due diligence actions being undertaken to comply with the requirements of the Work Health and Safety Act 2011.

Supporting Informed Decision-Making by Government

Decision-making is central to government.  Sound policy and advice assists the Cabinet in coordinating and structuring its crucial strategic policy and direction setting for the ACT Government as a whole.  The Directorate supported informed decision-making by ensuring that advice to the Government was evidence-based, timely, accurate, robust and covered essential issues succinctly, clearly and in sufficient detail.  This included provision of:

• advice on complex policy matters including intergovernmental relations;
• employment advice on the ACTPS and on the relationship between businesses and workers;
• rigorous economic advice, analysis and forecasting; and
• strategic advice throughout the 2014-15 Budget on process, fiscal strategy, financial updates and initiatives being considered.

As part of its role, the Directorate also provided policy advice and support to the Strategic Board.  The Board was supported by committees considering issues including workforce capacity and capability, improving life outcomes for members of the Aboriginal and Torres Strait Islander communities, overseeing whole of government budget processes and pressures, strategic direction on the planning and delivery of government infrastructure and procurement, planning and delivery of government business systems and ICT and improving the quality of policy advice supporting decisions of Cabinet and the Strategic Board.

Maintaining the Right Workforce

The ACTPS needs to have a workforce with the requisite skills and capacity to deliver quality services for the community and to help take the Territory forward.

To address our workforce challenges into the future, the Directorate took a lead role in engendering a respectful and inclusive working environment and encouraging consistency in people management throughout the ACTPS. 

The Directorate developed and delivered the inaugural ACT Public Sector 2014 All Staff Survey to obtain an evidence-based understanding of the lived culture experiences of staff across the Sector.  The results of the Survey will provide data on the effectiveness of reform initiatives, including the ACTPS Code of Conduct and new performance framework, as well as assisting in thedevelopment of future workforce management strategies, and/or targeted intervention initiatives for specific agencies.

The Directorate also commenced development of a new public sector act thatpromotes a values-based public sector.  The planned legislation will further embed the single service model through a significant whole of government emphasis, including vesting all employment powers at the Head of Service level, and a focus on collaboration.  The aim of a one service model is to create efficiencies through a single management approach, as well as to encourage individual workers to identify with the public sector as a whole so that a holistic, coordinated approach is taken to servicing the Territory and fulfilling the Government's agenda.

Improved Satisfaction with Community Engagement

The Government is committed to engaging the Canberra community in the development and delivery of government policies, programs, public works and services.  Enhancing citizen engagement and participation builds trust in government and makes processes more transparent, accountable and responsive to the public's views.

The Directorate continued to develop and implement a range of initiatives to effectively engage with Canberrans.  Most recently the focus has been on the further development of online and social media tools to communicate with the community, specific initiatives include:

• ACT Government Digital Mail Service, which provides government information in a more timely and targeted way;
• Canberra Digital Community Connect, which uses the National Broadband Network to provide opportunities for community groups to run online events that people can view and participate in from home;
• Mobile Canberra App, which uses GPS technology and ACT Government data to provide information on more than 9,800 local amenities; and
• Time to Talk Canberra website, which was upgraded in 2013 to reflect the increased use of social media platforms in the community, with an emphasis on more effective use of Facebook and Twitter.

Achieving a Budget Operating Surplus

The Government's fiscal objective is to achieve an operating surplus, temporary deficits must only occur if they are offset by surpluses at other times.

Current projections see a deficit of $332.8 million in 2014–15, falling through 2015–16, with the budget returning to balance in 2016–17 and surplus in 2017–18.  The Territory's debt level will increase as it borrows to invest in transformational and productive infrastructure but it will remain at an affordable level that is among the lowest of all Australian states and territories.  Debt will be reduced by returning the budget to balance from 2016–17 and divesting of ageing assets.

Maintaining a AAA Credit Rating

Standard & Poor's Ratings Services assesses the Territory's credit rating each year.  The Directorate assists the Government to maintain this credit rating through the provision of sound policy advice and prudent financial management.

The Territory currently has a AAA stable outlook credit rating, the highest possible.  This rating was last affirmed by Standard & Poor's in October 2013, reflecting a very positive view of the ACT Government's financial management, the very high-income economy, high budgetary flexibility and liquidity, and limited contingent liabilities.

Standard & Poor's is currently in the process of reviewing the current credit rating following the release of the 2014-15 Budget with the rating announcement expected by the end of September 2014.

Maintain Net Financial Liabilities within the Range of AAA Rated Jurisdictions

Net Financial Liabilities are a broad measure of General Government Sector liabilities, including net debt and superannuation liabilities.  The ACT continues to have a strong balance sheet, and remains below the weighted average level for all AAA rated jurisdictions.

The 2014-15 Budget maintains the ACT's Net Financial Liabilities within the range of AAA rated jurisdictions. 

Annualised long-term return of 5 per cent real (Superannuation Provision Account)

The annualised real return of the portfolio (net of inflation and fees) achieved over time is updated annually.  It is a measure of the average annual compounded return achieved over the measurement period.  Over the past eighteen years to 30 June 2014, the portfolio achieved a return of CPI + 5 per cent per annum (net of fees) which is matching the long term annualised target return objective.

Liability funding percentage (Superannuation Provision Account)

As at 30 June 2014, the proportion of the Territory Government's superannuation liabilities that are covered by assets in the Superannuation Provision Account was 41 per cent.  This result reflects the current historically low level of domestic interest rates.  The applicable spot discount rate required by Australian Accounting Standards to value the superannuation liability at 30 June 2014 was 4.08 per cent (4.29 per cent at 30 June 2013), the use of a lower discount rate leads to a higher liability valuation. 

Utilising a more appropriate liability valuation which incorporates the long term budget discount rate assumption of 6 per cent, the valuation of the liability would be materially lower and the current funding ratio would improve to approximately 56 per cent.

Our Current and Future Priorities

In July 2014 the Chief Minister announced changes to the Administrative Arrangements, creating the Chief Minister, Treasury and Economic Development Directorate.  The new Directorate brings together the former Chief Minister and Treasury Directorate; the Commerce and Works Directorate; the Economic Development Directorate; artsACT, concessions and community facilities from the Community Services Directorate; and ACT Property Group from the Territory and Municipal Services Directorate.  The new Directorate will focus on keeping the ACT economy strong while also being able to enhance internal effectiveness and efficiency, and drive a strong digital focus within government.

The restructure also introduced the concepts of clusters to emphasise key collaborative relationships.  The three clusters are:

• Strengthening governance, promoting opportunities comprising the new Chief Minister, Treasury and Economic Development Directorate together with Justice and Community Safety Directorate;
• Supporting our community comprising Community Services Directorate, Health Directorate and the Education and Training Directorate; and
• Enhancing our city with Environment and Planning Directorate, Territory and Municipal Services Directorate and Capital Metro Agency.

Chief Minister, Treasury and Economic Development Directorate (CMTEDD) will take an active role both within its cluster and across the ACTPS to support collaboration.

Another focus for CMTEDD in 2014-15, is the Asbestos Response Taskforce, established within the Directorate to provide a coordinated response by the Government to loose-fill asbestos issues.  The Taskforce acts as a single point of contact for those in the community affected by, or who have concerns about, loose-fill asbestos.

Other priorities going forward for Chief Minister, Treasury and Economic Development Directorate include:

• continuing coordination of regulatory and reform processes across government to reduce red tape and deliver tangible benefits and savings to business, the community and the government;
• developing a longer term Land Release Program to reflect market demand, enhance urban redevelopment outcomes, respond to changes in the economic climate and support affordable and sustainable development in the Territory;
• finalising a new Public Sector Bill to provide a modern employment framework including a simple statement of the role and employment arrangements for the ACTPS and wider public sector and the values of respect, integrity, collaboration and innovation, which will explicitly apply to the whole public sector, including statutory officeholders and agency heads;
• overseeing the ACT Courts Redevelopment Project, the Territory's first Public Private Partnership (PPP);
• progressing key elements of the City to the Lake vision, including design of the West Basin public realm, the arterial roads concept design, developing options for a new Canberra Theatre and progressing the financial business case for the Australia Forum;
• supporting commercial innovation and the export performance of ACT businesses through targeted programs and support, including greater in‑market activity delivered through Digital Canberra and increased resourcing for the CBR Innovation Network;
• developing iConnect which will establish a secure online portal to provide access to core government services and payment transactions through a single sign-on for each customer;
• continuing work on the review of the Financial Management Act 1996 with the aim of introducing amendments to achieve more streamlined, efficient and effective financial management legislation in the Territory;
• replacing the Territory's revenue system to provide a solid platform for revenue collection into the next ten years, to allow for citizen self service, on-line billing, improved compliance and the integration of concessions into the Territory's taxation system;
• delivering major events, including hosting three International Cricket Council Cricket World Cup matches at Manuka Oval, seven AFC Asian Cup matches at GIO Stadium Canberra, Floriade, Floriade Nightfest and the Enlighten Autumn Festival;
• continuing to develop and implement strategies to increase overnight visitor expenditure in the ACT from $1.8 billion to $2.5 billion per annum by 2020;
• finalising the migration of business systems and supporting infrastructure currently hosted at Callam Offices to the new state-of-the-art data centre facility; and
• developing whole of government approaches to digital records management.

In 2015 we can also look forward to 650 Shared Services staff moving to the new office block in Gungahlin.  The building will offer our staff a workplace that is more efficient in supporting innovation, collaboration and productivity.

I would like to thank the staff of the Chief Minister and Treasury Directorate for the support they have provided me since I commenced in the Directorate in February 2014 and I look forward to working with all the staff in the new Chief Minister, Treasury and Economic Development Directorate in 2014-15.

Kathy Leigh
Director-General