A key theme for the NSW Government is getting the structures and accountabilities right and working to restore public trust in Government and political institutions.

The NSW Public Sector is being designed to best coordinate the efforts to deliver the Government’s 10 year strategic plan contained in NSW 2021: A Plan to Make NSW Number One (NSW 2021).

The Commission of Audit Interim Report: Public Sector Management (the Interim Report) provides a roadmap for reform to deliver a more productive, efficient and responsive public sector. The Interim Report recommended measures to improve public sector accountability including that leadership responsibilities should be clearly set out for each Cluster in order to clarify the roles of Coordinating and Portfolio Ministers.

The NSW Government has endorsed the recommendations of the Interim Report. To improve accountability and transparency, the delineation of the roles and responsibilities of the Premier, Coordinating and Portfolio Ministers are outlined below, together with the key levers required to ensure enhanced coordination. The roles of Portfolio Ministers with broad responsibility for a particular region or population group are also addressed.

Roles and responsibilities at the Ministerial level in NSW

The Premier

The Premier is responsible for:

• allocating portfolios and leading the Government’s strategic priorities in NSW 2021, and setting policy and service priorities consistent with NSW 2021 for Coordinating and Portfolio Ministers and Directors General
• issuing instruments to Ministers outlining their responsibilities for the delivery of the Government’s key policy and service delivery priorities. For example, the Ministerial responsibilities clearly specified in NSW 2021
• setting and reviewing Ministerial and Director General accountability and performance requirements
• assessing overall performance against the achievement of strategic policy and service outcomes

Coordinating Ministers

The Coordinating Minister of a Cluster is responsible for:

• achieving the delivery of specified Cluster commitments, consistent with NSW 2021 goals and targets
• setting policy directions and developing service delivery strategies within the Cluster and coordinating across Clusters to achieve whole of government outcomes
• developing budget proposals for the Cluster in consultation with the Treasurer and relevant Portfolio Ministers for consideration at Cabinet level
• allocating the Cluster budget appropriation to entities within the Cluster in consultation with relevant Portfolio Ministers and the Director General of the Principal Department of the Cluster

Portfolio Ministers

Portfolio Ministers are responsible for:

• achieving NSW 2021 goals and targets, and the delivery of commitments within a portfolio
• setting policy direction across the respective portfolio, consistent with NSW 2021 goals and targets
• working with the Coordinating Minister to determine the portfolio budget, including providing advice in relation to the allocation of the budget to specific entities within the portfolio
• developing service strategies with key administrators across the respective portfolio
• working with the Coordinating Minister and Director General of the Cluster to achieve the delivery of whole of Cluster commitments

Regional and portfolios with whole of government responsibilities

Portfolios may be established with broad responsibility for a particular region or population group (e.g. Aboriginal Affairs, Ageing, Veteran’s Affairs, Youth Affairs and Women).

Their role is primarily to provide a ‘voice’ to Government for the region or for the population group they represent and advocate these interests in Cabinet. These Ministers have a key function in facilitation and coordination of multi-stakeholder and cross-Cluster issues arising in regions and/or for particular population groups. Generally, these Ministers do not direct the activities of substantive agencies outside their own portfolio which may be providing services to the respective region or population group.

Ministerial responsibilities by key functions

The specific application of these roles is outlined for key functions below. It is recognised that there are two key levers relating to more effective Ministerial coordination in Clusters.

Key levers

1. Policy Coordination via the Cabinet Process

The Premier chairs meetings of Cabinet and approves the Cabinet Agenda.
Coordinating Ministers:

• develop, coordinate and submit with other Coordinating Ministers to Cabinet, submissions with inter-Cluster policy implications
• develop and submit to Cabinet submissions with Cluster-wide policy implications

Portfolio Ministers develop and submit to Cabinet submissions with portfolio specific policy ramifications.

2. Financial Management

Coordinating Ministers:

• approve the submission of Cabinet Minutes to the Expenditure Review Committee of Cabinet, in consultation with Portfolio Ministers, as appropriate
• represent the Cluster at meetings of the Expenditure Review Committee of Cabinet
• receive an appropriation for the Principal Department of their Cluster
• allocate resources to agencies within the Cluster through grant funding, with the support of Portfolio Ministers and the Director General of each Principal Department
• ensure that the net cost of services for each agency within their Cluster is managed within the limits for that agency and meet any additional expenditure needs by reprioritising net cost of services limits between agencies in a Cluster
• ensure that the capital expenditure program for each agency within a Cluster is managed within the approved capital expenditure authorisation limits for that agency and meet any additional expenditure needs by reprioritising capital expenditure authorisation limits between agencies in a Cluster
• lead the Cluster’s budget cycle process, in consultation with Portfolio Ministers

Portfolio Ministers:

• endorse portfolio specific aspects of Cabinet Minutes being submitted by the Coordinating Minister to the Expenditure Review Committee of Cabinet1
• attend the Expenditure Review Committee of Cabinet at the request of the Coordinating Minister, in relation to portfolio specific issues
• liaise with the Coordinating Minister in relation to portfolio specific aspects of the Cluster’s budget cycle process and expenditure matters

Additional levers

3. Changes to the Machinery of Government

The Premier allocates Ministerial Portfolio responsibilities and recommends to the Governor the allocation of the Administration of Acts.
Coordinating Ministers ensure Cluster governance structures are appropriate, in consultation with relevant Portfolio Ministers and Directors General.
Portfolio Ministers provide portfolio specific input into broader Cluster governance arrangements in consultation with the Coordinating Minister and Director General.

4. Government Policy and Service Priorities

The Premier:

• consults with Coordinating and Portfolio Ministers on the development of the Government’s key portfolio specific policy and service delivery priorities
• identifies key issues with Coordinating and Portfolio Ministers in an annual Cluster Priority setting process to inform the Budget process

Coordinating Ministers:

• develop and submit Cluster policy and service delivery priorities, in consultation with relevant Portfolio Ministers, for the approval of the Premier
• approve Cluster-wide policy and service delivery strategies, in consultation with relevant Portfolio Ministers

Portfolio Ministers liaise with the Coordinating Minister in relation to the development of portfolio specific policy and service delivery priorities.

5. Performance and Planning

The Premier:

• leads and assesses overall performance against the achievement of the Government’s key policy and service delivery priorities, expressed in NSW 2021 goals and targets
• requests remediation strategies to address identified deficiencies in performance
• develops Performance Agreements and assesses the Performance of Cluster Directors General in consultation with the Coordinating Minister, the Director General of the Department of Premier and Cabinet and Public Service Commissioner

Coordinating Ministers:

• lead and monitor the Cluster’s achievement of Cluster commitments and service delivery standards
• develop and approve the submission of Cluster performance reporting against policy and service delivery priorities
• develop and endorse remediation strategies for Cluster commitments in consultation with relevant Portfolio Ministers and submit to the Premier
• endorse the Performance Agreements of Cluster Directors General in conjunction with the Premier, Director General of the Department of Premier and Cabinet and Public Service Commissioner, seeking input from Portfolio Ministers as appropriate

Portfolio Ministers:

• lead and monitor the achievement of portfolio commitments and service delivery standards
• endorse the submission of portfolio based performance reports
• develop and submit remediation strategies to the Coordinating Minister in relation to portfolio commitments
• provide input to Coordinating Ministers on the Performance Agreements of Cluster Directors General and their performance assessment, as appropriate

6. Legislative Program

The Premier approves the Government’s legislative program and the priorities of legislative proposals.

Coordinating Ministers prepare Cluster legislative program priorities for submission to the Premier.

Portfolio Ministers submit portfolio legislative program proposals to the Coordinating Minister.

7. Corporate Service Enablers

Coordinating Ministers oversight the implementation of corporate service enablers across the Cluster (within whole of government policies), in consultation with Portfolio Ministers, as appropriate.

Portfolio Ministers liaise with the coordinating Minister in relation to portfolio specific impacts of corporate service enablers.

Barry Farrell MP
Premier