From the Secretary – the year in review

I am very pleased to present this report on the performance of the Department of Treasury and Finance for 2007–08.

This year we have continued our involvement in a number of national initiatives that are intended to improve the transparency and accountability of governments across Australia. Some key milestones have been reached. On 26 March 2008, the Council of Australian Governments agreed on a new framework for Commonwealth-State financial relations. By improving the arrangements between the levels of government in core service-delivery areas (health, education, housing and disability services), introducing greater funding certainty and reducing Commonwealth prescriptions, state service delivery will be enhanced.

The new framework will provide for clearer roles and responsibilities and for outcome-based public accountability, as well as for an ambitious reform program. This framework is one that is consistent with the broad direction for reform that we have been advocating for many years. Next year we will be involved in implementing the reforms through the development of specific intergovernmental agreements in service delivery areas, the finalisation of new agreed national reforms and the creation of a new intergovernmental agreement that will encompass the new financial framework.

An integrated accounting standard incorporating both General Government Sector and whole-of-government reporting was finalised by the Australian Accounting Standards Board in October 2007. To meet the requirements of the new standard we upgraded our internal financial management system, revised the structure and content of the Budget papers, and implemented associated changes to our Budget management system. The move to an integrated standard is welcomed as it will improve accountability and transparency to the community.

As part of the Commonwealth Grants Commission's 2010 Review, we hosted the Commission for a week of workplace discussions in April 2008. This Review will be determining the methods to be used for distributing GST revenue among the states for the five-year period beginning in 2011–12. During the Commission's visit we were able to explain, and also demonstrate, the cost and demand pressures that influence the delivery of State Government services in Tasmania. Our aim throughout the Review is to ensure that the State's financial needs will be recognised under the new methods.

This year we have also focused on enhancing the efficiency and reliability of our internal operations and on improving our communications with stakeholders. The roll-out of our new electronic document management system was completed on 30 June 2008, the end point of four years of planning, trialling and implementing the technology, and training all our staff in its use. The EDMS enables us to capture all electronic documents, including emails. This provides us with greater security and access; and allows us to more easily collaborate and share information across the Department.

Our website and all our publications now have a consistent and distinctive "look". Website navigation is easier and it now has characteristics in common with other Tasmanian Government websites. This was the first step towards a greater reliance on the web in communicating with our clients, stakeholders and the community. In line with this intent, Revenue Branch has been working with other agencies to develop documents that will simplify business-to-government reporting, and is ready to re-engineer processes and systems to improve service provision during 2008–09. The Liquor and Gaming Branch has also been streamlining its processes in preparation for improving service delivery via the web.

Since the Water and Sewerage Ministerial Taskforce was established in September 2006, we have been involved in the Government's wide-ranging structural and institutional reform of water and sewerage services in Tasmania. This year State and Local Government reached an agreement to set up three local-government-owned regional water and sewerage businesses. Another business, to be owned by the regional corporations, will be set up to provide common services for the three corporations. Following the Cabinet decision that gave effect to this agreement, we prepared two pieces of legislation and these were passed by Parliament on 30 May 2008. Through facilitating an appropriate level of investment in infrastructure, the new businesses will not only improve our environmental and public health outcomes but will also support the economic development of regional communities.

In response to the Premier's initiatives on climate change we have worked closely with the Tasmanian Climate Change Office on a number of initiatives. Vehicles tendered for purchase by