The public interest and grants administration

What is the public interest?

The public interest, sometimes referred to as the ‘common good’, is about putting the best interests of the community over the private interests of individuals.

Acting in the public interest is essential for government decisions about the use and expenditure of public money.

Ministers and officials have ethical obligations that require them to act in the public interest:

• Under clause 6 of the NSW Ministerial Code of Conduct, Ministers have a duty to act honestly and in the public interest
• Part 2 of the Government Sector Employment Act 2013 (NSW) (GSE Act) establishes the Ethical Framework for the NSW Government Sector, which recognises the role of officials in preserving the public interest and defending public value. One of the government sector core values in section 7 of the GSE Act is ‘integrity’, and a principle given for guiding implementation of that core value is to ‘[p]lace the public interest over personal interest’.

Considering the public interest in grants administration

When planning and designing a grant, officials should have regard to the public interest. This is important given the role of officials in preserving the public interest, defending public value and adding professional quality and value to the commitments of the Government of the day. Robust planning and design is a key principle in the Grants Administration Guide (section 5.1).

Building appropriate probity and transparency measures into grants administration helps to ensure that the public interest is prioritised in grants processes.

Determining what is in the public interest may depend on the context and circumstances of each grant.

To support consideration of whether a grant is in the public interest, agencies may have regard to the following questions:

• Rationale – Why is the grant needed? Consider the expected outcomes and benefits and how to measure these, as well as any factual evidence and stakeholder input.
• Objectives – What is the public interest objective of the grant? Consider the expected costs and benefits of administering the grant.
• Options – Is a grant the best vehicle to achieve the intended policy objectives? Consider a range of feasible options that would meet the intended objectives. What are the advantages/disadvantages and benefits/costs of each option considered? Consider the risks and sensitivities involved in each of these.
• Consultation – Were the views of affected stakeholders sought and considered in developing the grant? Consider the potential for co-design with prospective grantees and/or other stakeholders to best meet identified needs.

The above questions complement the planning and design considerations set out in the Guide (see sections 5.1 and 6.1).

Factoring the public interest into grants planning and design and considering it throughout the grant lifecycle assists decision-makers to make ethical and transparent grants decisions, for the benefit of the community.