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Senate Legislative and General Purpose Standing Committees—Consolidated reports on the examination of annual reports—No. 2 of 2014


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Australian Senate

Senate Legislation Committees

Reports on the examination of annual reports No. 2 of 2014

August 2014

© Parliament of the Commonwealth of Australia 2014

ISSN 1834-4054

This document was printed by the Printing Unit, Department of the Senate, Parliament House, Canberra.

TABLE OF CONTENTS

Community Affairs Committee

Annual reports (No. 2 of 2014), dated August 2014 ................................... 1

Economics Committee

Annual reports (No. 2 of 2014), dated August 2014 ................................. 29

Education, Employment and Workplace Relations Committee

Annual reports (No. 2 of 2014), dated August 2014 ................................. 65

Environment and Communications Committee

Annual reports (No. 2 of 2014), dated August 2014 ................................. 89

Finance and Public Administration Committee

Annual reports (No. 2 of 2014), dated August 2014 ............................... 111

Foreign Affairs, Defence and Trade Committee

Annual reports (No. 2 of 2014), dated August 2014 ............................... 137

Legal and Constitutional Affairs Committee

Annual reports (No. 2 of 2014), dated August 2014 ............................... 159

Rural and Regional Affairs and Transport Committee

Annual reports (No. 2 of 2014), dated August 2014 ............................... 191

The Senate

Community Affairs

Legislation Committee

Annual reports (No. 2 of 2014)

August 2014

1

 Commonwealth of Australia 2014

ISBN 978-1-76010-055-1

Secretariat

Ms Jeanette Radcliffe (Committee Secretary)

Mr Tasman Larnach (Research Officer)

Ms Carol Stewart (Administrative Officer)

PO Box 6100 Parliament House Canberra ACT 2600

Phone: 02 6277 3515

Fax: 02 6277 5829

E-mail: community.affairs.sen@aph.gov.au Internet: www.aph.gov.au/senate_ca

This document was produced by the Senate Community Affairs Committee Secretariat and printed by the Senate Printing Unit, Parliament House, Canberra.

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Australia License.

The details of this licence are available on the Creative Commons website: http://creativecommons.org/licenses/by-nc-nd/3.0/au/

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MEMBERSHIP OF THE COMMITTEE

44th Parliament

Members

Senator Sue Boyce, Chair to 30 June 2014 Queensland, LP

Senator Zed Seselja, Chair from 1 July 2014 Australian Capital Territory, LP

Senator Rachel Siewert, Deputy Chair Western Australia, AG

Senator Carol Brown Tasmania, ALP

Senator Nova Peris OAM Northern Territory, ALP

Senator Linda Reynolds (from 1 July 2014) Western Australia, LP

Senator Dean Smith Western Australia, LP

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Table of Contents

Membership of the Committee ........................................................................ iii

Table of Contents ................................................................................................ v

Chapter 1.............................................................................................................. 1

Overview .................................................................................................................... 1

Terms of Reference ................................................................................................ 1

Allocated portfolios and changes to portfolios ....................................................... 1

Purpose of annual reports ....................................................................................... 2

Annual reporting requirements ............................................................................ 2

Timeliness of reports ........................................................................................... 3

Publishing standards for the Presentation of Documents to Parliament ............. 4

Reports examined 2012-13 .................................................................................... 4

Letter of transmittal—General Practice Education and Training Limited .......... 5

Compliance Index ................................................................................................ 5

Comments made in the Senate ............................................................................... 5

Other Issues ............................................................................................................ 5

Government Response ......................................................................................... 5

Additional Reports............................................................................................... 6

Chapter 2.............................................................................................................. 7

Annual Reports of Commonwealth Authorities, Companies and Agencies ....... 7

Social Services Portfolio ........................................................................................ 7

Australian Institute of Family Studies ................................................................. 7

Social Security Appeals Tribunal ........................................................................ 8

Health Portfolio ...................................................................................................... 8

Australian Sports Anti-Doping Authority ........................................................... 8

Food Standards Australia New Zealand .............................................................. 9

General Practice Education and Training Limited .............................................. 9

National Health and Medical Research Council ............................................... 10

Private Health Insurance Administration Council............................................. 11

5

Appendix 1 ......................................................................................................... 13

List of departments, agencies and bodies required to present annual reports to the Senate ............................................................................................................ 13

Social Services Portfolio ...................................................................................... 13

Health Portfolio .................................................................................................... 16

Human Services Portfolio ..................................................................................... 21

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Chapter 1 Overview

1.1 This is the second Senate Community Affairs Legislation Committee (the committee) report on annual reports for 2014. It provides an overview of the committee's examination of annual reports for the 2012-13 financial year tabled by 30 April 2014.1

Terms of Reference 1.2 Under Senate Standing Order 25(20), annual reports of departments and agencies shall stand referred to the legislation committees in accordance with an allocation of departments and agencies in a resolution of the Senate. Each committee shall:

(a) Examine each annual report referred to it and report to the Senate whether the report is apparently satisfactory;

(b) Consider in more detail, and report to the Senate on, each annual report which is not apparently satisfactory, and on the other annual reports which it selects for more detailed consideration;

(c) Investigate and report to the Senate on any lateness in the presentation of annual reports;

(d) In considering an annual report, take into account any relevant remarks about the report made in debate in the Senate;

(e) If the committee so determines, consider annual reports of departments and budget-related agencies in conjunction with examination of estimates;

(f) Report on annual reports tabled by 31 October each year by the tenth sitting day of the following year, and on annual reports tabled by 30 April each year by the tenth sitting day after 30 June of that year;

(g) Draw to the attention of the Senate any significant matters relating to the operations and performance of the bodies furnishing the annual reports; and

(h) Report to the Senate each year whether there are any bodies which do not present annual reports to the Senate and which should present such reports.

Allocated portfolios and changes to portfolios 1.3 On 13 November 2013, a resolution of the Senate allocated the following three portfolios to this committee:

1 Copies of this and other committee reports can be obtained from the Senate Table Office, the committee secretariat or online at www.aph.gov.au/senate_ca

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• Health;

• Social Services; and

• Human Services. 2

1.4 Under the most recent Administrative Arrangements Order (AAO), Indigenous policies, programmes and service delivery were transferred to the Department of Prime Minister and Cabinet (PM&C). Indigenous primary healthcare remains with the Department of Health (DoH). The National Mental Health Commission was transferred from PM&C to DoH.3

1.5 The committee notes that the reports for the 2012-13 financial year relate to the period prior to the most recent AAO changes.

Purpose of annual reports 1.6 The primary purpose of annual reports is accountability, in particular to the Parliament.4 The tabling of annual reports places information about government departments and agencies on the public record and assists in the effective examination of the performance of departments and agencies and the administration of government grants.

Annual reporting requirements

1.7 Senate Standing Order 25(20) requires that the committee report on annual reports—tabled by 30 April 2014 each year—be tabled by the tenth sitting day after 30 June of that year. The committee is required to examine reports referred to it to determine whether they are timely and 'apparently satisfactory'. The committee must consider whether the reports comply with the relevant legislation and guidelines for the preparation of annual reports in forming its assessment.

1.8 The requirements are set down in the following instruments:

• For portfolio departments and agencies and the parliamentary departments: the Public Service Act 1999, sections 63(2) and 70(2), and the Parliamentary Service Act 1999, section 65; or other relevant enabling legislation for statutory bodies which are also prescribed agencies under the Financial Management and Accountability Act 1997 (FMA Act); and the PM&C Requirements;

• for Commonwealth authorities and companies: the Commonwealth

Authorities and Companies Act 1997 (CAC Act), in particular, sections 9, 36 and 48; and the Commonwealth Authorities (Annual Reporting) Orders

2 Journals of the Senate, No. 2—13 November 2013, pp 88-89.

3 Commonwealth of Australia Administrative Arrangements Order, 12 December 2013, https://www.dpmc.gov.au/parliamentary/docs/aao_20131212.pdf, accessed 4 August 2014.

4 Department of the Prime Minister and Cabinet, Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies, approved by the Joint Committee of Public Accounts and Audit on 24 June 2013, p. 3, http://www.dpmc.gov.au/guidelines/index.cfm (16 July 2014).

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2011 and the Commonwealth Companies (Annual Reporting) Orders 2011; and

• for non-statutory bodies: the guidelines are contained in the government response to the Senate Standing Committee on Finance and Public Administration Report on Non-Statutory bodies.5

1.9 Amendments to the Requirements for Annual Reports applicable for the 2012-13 reporting period are:

• Spatial reporting—a new requirement has been added for selected portfolio

agencies to report on expenditure in relation to the Spatial Reporting Framework.6

1.10 Statutory authorities must report in accordance with their establishing legislation.

1.11 The committee notes that some of the bodies that are required to produce annual reports to the Senate fall outside the categories listed above. In these cases, examination of the annual report is based on general content and information rather than compliance with legislation and guidelines.

Timeliness of reports

1.12 Annual reports for departments and agencies are required to be tabled in Parliament by 31 October each year unless another date is specified in an agency's legislation, charter and/or terms of reference. The PM&C Requirements state that 'it remains the Government's policy that all annual reports should be tabled by 31 October'.7 The committee considers timeliness in annual reporting an important element in accountability and continues to encourage FMA Act bodies to follow this policy.

1.13 Commonwealth authorities reporting under the CAC Act are required to provide an annual report to the responsible Minister by the fifteenth day of the fourth month after the end of the financial year. For the standard financial year, this is 15 October. The Minister is required to present the report to the Parliament within 15 sitting days of that House after the day on which the report was received.

1.14 Commonwealth companies are required under the CAC Act to provide a report to the Minister four months after the end of the financial year, which is usually 31 October.8 The Minister is required to table the report in the Parliament as soon as

5 Senate Hansard, 8 December 1987, pp 2632-45.

6 Department of the Prime Minister and Cabinet, Requirements for Annual Reports, 2013, p. i.

7 Department of the Prime Minister and Cabinet, Requirements for Annual Reports, 2013, p. 2.

8 If a company is required under the Corporations Act 2001 to hold an annual general meeting, the company must give the report to the Minister on whichever is the earlier date of the following: • 21 days before the next annual general meeting after the end of the financial year; or • Four months after the end of the financial year (see subsection 36(1A) of the CAC Act)

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practicable after receiving it, or in the case of a company required to hold an annual general meeting, as soon as practicable after the meeting.

1.15 Appendix 1 lists the annual reports tabled (or presented) in Parliament between 1 November 2013 and 30 April 2014, and referred to the committee, with relevant tabling dates. Reports covering the 2012-13 financial year and examined in this report were presented in a timely manner, that is, by 31 October 2013.

Publishing standards for the Presentation of Documents to Parliament

1.16 The Department of Prime Minister and Cabinet has produced Guidelines for the Presentation of Documents to the Parliament. These guidelines state:

Documents to be included in the Parliamentary Papers Series must be printed on International B5 size paper.9

Reports examined 2012-13 1.17 This report considers seven annual reports received during the period 1 November 2013 and 30 June 2014. It considers two annual reports that were received outside of the reporting periods for 2013, and were not included in the committee's Reports on Annual Reports (No. 1 of 2014)—the Australian Sports and Anti-Doping Authority and Food Standards Australia New Zealand.

1.18 Three reports have been examined to determine whether or not their contents satisfy the detailed legislative requirements as set out in the CAC Act. Four annual reports have been checked to ascertain whether or not their contents satisfy the mandatory criteria for inclusion as set out in the FMA Act.

1.19 A list of the annual reports of departments, agencies and other bodies tabled in the Senate (or presented out of session to the President of the Senate), and referred to the committee for examination, can be found at Appendix 1. The table shows the legislation under which reports are required to be provided, tabling information, and the reporting period during which the report was provided.

1.20 The committee is pleased to note that generally the annual reports examined adhere to the relevant reporting guidelines in a satisfactory manner. The reports continue to maintain high standards of presentation and provide a comprehensive range of information on their functions and activities. However, some specific comments about timeliness and adherence to reporting requirements are given below.

1.21 The majority of the annual reports referred to the committee were tabled within the specified period or shortly thereafter. The committee acknowledges that the Australian Sports Anti-Doping Authority and Food Standards Australia New Zealand

9 Australian Government Department of Prime Minister and Cabinet, Guidelines for the Presentation of Documents to the Parliament (including Government Documents, Government Responses to Committee Reports, Ministerial Statements, Annual Reports and other Instruments, October 2013, p. 4, http://www.dpmc.gov.au/guidelines/docs/guidelines_gov_docs.pdf, accessed 18 July 2014.

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provided notification that their reports would be delayed.10 The committee also notes that two reports were received late by the Minister's office—General Practice Education and Training Limited, and the National Health and Medical Research Council.

Letter of transmittal—General Practice Education and Training Limited

1.22 Further to comments in the Report on Annual Reports (No. 2 of 2013)11, the committee again notes that the annual report from General Practice Education and Training Limited (GPET) did not include a Letter of Transmittal. The committee requests that GPET include a letter of transmittal to the Minister in their future annual reports, containing a statement that the annual report was prepared in accordance with subsection 36(1) of the Commonwealth Authorities and Companies Act 1997.

Compliance Index

1.23 The committee is pleased to note that, in line with new reporting

requirements, only one annual report considered for this report did not include a compliance index—General Practice Education and Training Limited.

Comments made in the Senate 1.24 The committee is obliged, under Senate Standing Order 25(20)(d), to take into account any relevant remarks made about these reports in the Senate. The committee is not aware of any comments made in the Senate regarding the annual reports of departments and agencies within its purview.

Other Issues

Government Response

1.25 The Government provided a response to the committee's Report on Annual Reports (No. 2 of 2012) on 7 May 2014. The committee recommended that the Government review 'whether an annual report of [National E-health Transition

Authority] NEHTA should be presented to Parliament'.12 The Government determined that as NEHTA is not an executive agency, it is not required to provide an annual report to the Parliament.13

10 Senate Community Affairs Legislation Committee, Report on Annual Reports (No. 1 of 2014), March 2014, p. 5.

11 Senate Community Affairs Legislation Committee, Report on Annual Reports (No. 1 of 2014), October 2013, p. 8.

12 Senate Community Affairs Legislation Committee, Report on Annual Reports (No. 2 of 2012), September 2012, p. 11.

13 Australian Government response to the Senate Community Affairs Legislation Committee report: Report on Annual Reports (No. 2 of 2012), May 2014. http://www.aph.gov.au/~/media/Committees/Senate/committee/clac_ctte/annual/2012/gov_resp onse.pdf, accessed 4 August 2014.

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Additional Reports

1.26 In addition to the reports listed in Appendix 1, the following reports were also referred to and received by the committee between the period of 1 March 2014 and 30 June 2014. The committee notes that these reports were for their information only and the committee is not required by the terms of the Standing Order to report on these:

• Australian Government Department of Health—Report to Parliament on the Collection of PBS/RPBS under Co-Payment Prescription Data—2012-13 (tabled in the Senate 19 June 2014)14

• Australian Government Department of Social Services—Paid Parental Leave Scheme—Review Report—June 2014 (tabled in the Senate 16 June 2014)15

• Australian Institute of Health and Welfare—Australia’s health 2014—Fourteenth Biennial Report (tabled in the Senate 25 June 2014)16

• Australian Radiation Protection and Nuclear Safety Agency—Quarterly Report for the period 1 January 2014 to 31 March 2014 (tabled in the Senate 17 June 2014)17

• Medical Training Review Panel—Report for 2012-13 (tabled in the Senate 24 June 2014)18

• National Health and Medical Research Council (NHMRC)—NHMRC Embryo Research Licensing Committee—Report to the Parliament of Australia for the period 1 September 2013 to 28 February 2014 (tabled in the Senate 18 June 2014)19

• Office of the Gene Technology Regulator—Quarterly Report for the period 1 October to 31 December 2013 (tabled in the Senate 13 May 2014)20

14 Journals of the Senate, No. 33—19 June 2014, p. 933.

15 Journals of the Senate, No. 30—16 June 2014, p. 857.

16 Journals of the Senate, No. 36—25 June 2014, p. 987.

17 Journals of the Senate, No. 31—17 June 2014, p. 881.

18 Journals of the Senate, No. 35—24 June 2014, p. 963.

19 Journals of the Senate, No. 32—18 June 2014, p. 899.

20 Journals of the Senate, No. 27—13 May 2014, p. 774.

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Chapter 2

Annual Reports of Commonwealth Authorities, Companies and Agencies 2.1 For the financial year 2012-13, the following annual reports were referred to the committee for examination and report during the period

1 November 2013 to 30 April 2014:

Social Services Portfolio • Australian Institute of Family Studies; and

• Social Security Appeals Tribunal.

Health Portfolio • Australian Sports Anti-Doping Authority;

• Food Standards Australia New Zealand;

• General Practice Education and Training Limited;

• National Health and Medical Research Council; and

• Private Health Insurance Administration Council.

2.2 The committee has reviewed and provides comments on these portfolio annual reports.

Social Services Portfolio

Australian Institute of Family Studies

2.3 The annual report was tabled on 3 December 2013.1

2.4 The Australian Institute of Family Studies (AIFS) is a Melbourne-based statutory agency of the Australian Government, established in February 1980 under the Australian Family Law Act 1975. The Institute undertakes research in the area of family well-being with the objective of increasing understanding of the factors that affect how families function. The Institute's work provides an evidence base for the development of policy and practice related to family well-being.2

2.5 The committee is pleased that AIFS met or exceeded all of its seven key performance indicators.3 In 2012-13, AIFS exceeded its target for publications downloaded by over 50%, demonstrating that the AIFS research outcomes are relevant and accessible.4

1 Journals of the Senate, No. 5—3 December 2013, p. 203.

2 Australian Institute of Family Studies, Annual Report 2012-13, p. 12; Australian Institute of Family Studies, http://www.aifs.gov.au/institute/aifs/aboutaifs.html, accessed 18 July 2014.

3 Australian Institute of Family Studies, Annual Report 2012-13, p. 18.

4 Australian Institute of Family Studies, Annual Report 2012-13, p. 19.

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2.6 During 2012-13, the AIFS own-source revenue increased from $6.02 million to $9.74 million with a commensurate increase in expenses. Revenue from Government declined slightly with the AIFS registering a slightly smaller year-on-year deficit of $232,799. The committee is pleased that the AIFS has increased its revenue base.

2.7 The committee considers the annual report of the AIFS to be 'apparently satisfactory.'

Social Security Appeals Tribunal

2.8 The annual report was tabled in the Senate on 12 December 2013.5

2.9 The Social Security Appeals Tribunal (SSAT) reported on a 12% increase in decisions reviewed, increasing from 12,949 to 14,538 year-on-year. Applications to the Administrative Appeals Tribunal (AAT) increased by 30% due to statutory amendments relating to the disability support pension. The AAT affirmed 80% of the SSAT decisions referred to them, an increase from 75% in the 2011-12 period. The SSAT identified only 9 cases where the AAT adopted a different interpretation of the law to the SSAT.6

2.10 The committee notes that as the SSAT is not a prescribed agency under the Financial Management and Accountability Act 1997, it is not bound by the requirements for annual reports. However, the committee commends the SSAT for adopting most of these requirements in its 2012-13 report.

Health Portfolio

Australian Sports Anti-Doping Authority

2.11 The committee acknowledges that the Australian Sports and Anti-Doping Authority (ASADA) provided notification that their report would be delayed.7 On 24 October 2013, the ASADA wrote to the Minister for Sport requesting an extension until 22 November 2013. The Minister granted the extension and the report was tabled in the Senate on 3 December 2013.8

2.12 The report noted the ASADA's investigative response to the Australian Crime Commission's Operation Aperio. This on-going, complex and wide-ranging investigation has reviewed more than 50,000 documents and interviewed more than

150 athletes and support people. Another major investigation into Australian cycling and allegations of doping is also on-going.9

5 Journals of the Senate, No. 11—12 December 2013, p. 389.

6 Social Security Appeals Tribunal, Annual Report 2012-13, p. 1.

7 Senate Community Affairs Legislation Committee, Report on Annual Reports (No. 1 of 2014), March 2014, p. 5.

8 Journals of the Senate, No. 5—3 December 2013, p. 203

9 Australian Sports Anti-Doping Authority, Annual Report 2012-13, pp 10-11.

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2.13 The committee commends the ASADA on a well-presented and comprehensive report. Although the ASADA has outlined its customer service charter, future annual reports would benefit from the inclusion of performance statistics related to this charter.10 The committee considers that further to comments made in its October 2013 report, an expanded compliance index and inclusion of exemptions to reporting requirements would improve the ASADA's Annual Report.11

Food Standards Australia New Zealand

2.14 The committee acknowledges that Food Standards Australia New Zealand (FSANZ) provided notification that their report would be delayed.12 On 28 October 2013, FSANZ wrote to the Assistant Minister for Health advising that they would be unable to provide the responsible Minister with a copy of the report before 15 October 2013, as outlined in Section 9 of the Commonwealth Authorities and Companies Act 1997. The Minister granted the extension and the report was tabled in the Senate on 3 December 2013.13

2.15 The authority collaborated with the Australian Bureau of Statistics to prepare a nutrient database for the Australian Health Survey 2011-13.14 A range of emerging issues and projects currently being progressed include anti-microbial resistance, food

packaging, nanotechnology, genetically modified foods, and improved frameworks to better anticipate emerging food safety issues.15

2.16 The committee considers the annual report of FSANZ to be 'apparently satisfactory'.

General Practice Education and Training Limited

2.17 The annual report was tabled in the Senate on 3 December 2014.16

2.18 General Practice Education and Training Limited (GPET) is an Australian Government company that manages three general practice medical training programs. These are the Australian General Practice Training Program (AGPT), the Prevocational General Practice Placements Program (PGPPP), and the Overseas-Trained Doctor National Education and Training (OTDNET).17

10 Australian Sports Anti-Doping Authority, Annual Report 2012-13, p. 62.

11 Senate Community Affairs Legislation Committee, Report on Annual Reports (No. 2 of 2013), October 2013, p. 12.

12 Senate Community Affairs Legislation Committee, Report on Annual Reports (No. 1 of 2014), March 2014, p. 5.

13 Journals of the Senate, No. 5—3 December 2013, p. 203

14 Food Standards Australia New Zealand, Annual Report 2012-13, p. 13.

15 Food Standards Australia New Zealand, Annual Report 2012-13, pp 94-95.

16 Journals of the Senate, No. 5—3 December 2013, p. 203

17 General Practice Education and Training Limited, http://www.gpet.com.au/About-Us/About-Us, accessed 17 July 2014.

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2.19 GPET has been successful in expanding a number of these programs in accordance with Australian Government policy. There was an increase of over 200 places or 30% year-on-year within the PGPPP with the AGPT also expanding 'the number of training places from 600 per annum in 2008 to 1 200 by 2014'.18 The number of Aboriginal and Torres Strait Islander GP Registrars has increased through the AGPT from 6 in 2004 to 39 in 2012.19 High satisfaction rates (>83%) were recorded by AGPT participants.20

2.20 Further to comments in the Report on Annual Reports (No. 2 of 2013), the committee reiterates a number of suggested changes that will assist the committee in its examination of future annual reports.21 The committee suggests that GPET consider the addition of the following in future annual reports:

• a letter of transmittal;

• compliance index (required); 22

• glossary index;

• contact officer (position and/or name);

• agency overview;

• human resources data including staffing profile, collective agreement and performance pay; and

• director indemnity information (required). 23

2.21 Notwithstanding the above issues, the committee commends GPET on its financial statements24 which are clearly set out and consistent with other Commonwealth company annual reports. The key results area (KRA) information25 effectively conveys GPET's achievements against quantifiable objectives and KRAs.

National Health and Medical Research Council

2.22 The annual report was tabled in the Senate on 12 November 2013.26

2.23 The committee welcomes the Hon. Justice Annabelle Bennett AO as the new Chair of the National Health and Medical Research Council (NHMRC) Council.27

18 General Practice Education and Training Limited, Annual Report 2012-13, p. 4.

19 General Practice Education and Training Limited, Annual Report 2012-13, p. 9.

20 General Practice Education and Training Limited, Annual Report 2012-13, p. 39.

21 Senate Community Affairs Legislation Committee, Report on Annual Reports (No. 2 of 2013), October 2013, p. 12.

22 Commonwealth Authorities (Annual Reporting) Orders 2011, s. 21.

23 Commonwealth Authorities (Annual Reporting) Orders 2011, s. 19.

24 General Practice Education and Training Limited, Annual Report 2012-13, pp 48-80.

25 General Practice Education and Training Limited, Annual Report 2012-13, pp 18-40.

26 Journals of the Senate, No. 1—12 November 2013, p. 33.

27 National Health and Medical Research Council (NHMRC), Annual Report 2012-13, p. 2.

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During 2012-13, NHMRC launched the Research Translation Faculty to assist in converting research into applied outcomes. This is consistent with the NHMRC Strategic Plan 2013-2015, where the NHMRC committed to 'help bridge the gap between the knowledge created through research and the translation of that knowledge into practice'.28

2.24 The committee is pleased with the report on activities within the Annual Report. This section describes a wide range of different research activities in a concise and accessible manner.29 The 'Ten of the Best Research Projects 2012' is also useful in highlighting successful research outcomes including new methodologies for identifying childhood allergies and manipulation of the genetic pathway that causes skin cancer.30

2.25 Overall, this report is quite comprehensive and meets most requirements. However, the report does not provide a contact officer to whom enquiries can be addressed for further information. This is a mandatory requirement31 that will assist in improved public accessibility.

Private Health Insurance Administration Council

2.26 The annual report was tabled in the Senate on 12 November 2013.32

2.27 During 2012-13, the Private Health Insurance Administration Council (PHIAC) achieved or exceeded its deliverables as determined in the Portfolio Budget Statements.33 The committee notes PHIAC's new lead role in advising the Minister on the annual review of private health insurance premiums and commends PHIAC for creating a more streamlined and transparent approach.34

2.28 The committee considers the annual report of PHIAC to be 'apparently satisfactory'.

Senator Zed Seselja

Chair

28 National Health and Medical Research Council (NHMRC), Annual Report 2012-13, pp 60-61.

29 National Health and Medical Research Council (NHMRC), Annual Report 2012-13, pp 36-43.

30 National Health and Medical Research Council (NHMRC), Annual Report 2012-13, pp 44-47.

31 Australian Government Department of Prime Minister and Cabinet, Requirements for Annual Reports for Departments, Executive Agencies, and FMA Act Bodies, 29 May 2014, p. 18, http://www.dpmc.gov.au/guidelines/docs/annual_report_requirements_2013-14.pdf, accessed 18 July 2014.

32 Journals of the Senate, No. 1—12 November 2013, p. 34.

33 Private Health Insurance Administration Council, Annual Report 2012-13, pp 7-9.

34 Private Health Insurance Administration Council, Annual Report 2012-13, p. 2.

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18

Appendix 1

List of departments, agencies and bodies required to present annual reports to the Senate Social Services Portfolio Department/Agency/Body Type Legislation Reporting

Year

Date tabled Senate

Date tabled House of Represent-

atives

Date received out of session by President of the Senate (if applicable)

Date

submitted to/ received by Minister (if available)

Received during period for Report 1

of 2014

Received during period for Report 2

of 2014

Anindilyakwa Land Council1 CAC Act - statutory authority

Section 37 of the Aboriginal Land Rights (Northern Territory) Act 1976 and section 9 of the Commonwealth Authorities and Companies Act 1997

2011-12 18/06/13 28/05/13 n/a 15/05/13

15/05/13

Australian Institute of Family Studies (AIFS) FMA Act - Prescribed

agency

Section 114LC of the Family Law Act 1975, section 70 and subsection 70(1) of the Public Service Act 1999

2012-13 03/12/13 02/12/13 n/a 14/10/13

14/10/13

√

Aged Care Commissioner Statutory office holder - Departmental body

Section 95A-12 of the Aged Care Act 1997 2012-13 12/11/13 13/11/13 31/10/13 01/10/13

01/10/13

√

1 Report received outside of the reporting periods for 2013 Reports on Annual Reports. Report considered in Report on Annual Reports (No. 1 of 2014).

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Department/Agency/Body Type Legislation Reporting

Year

Date tabled Senate

Date tabled House of Represent-

atives

Date received out of session by President of the Senate (if applicable)

Date

submitted to/ received by Minister (if available)

Received during period for Report 1

of 2014

Received during period for Report 2

of 2014

Aged Care Standards and Accreditation Agency Ltd (ACSAA)

CAC Act - company (limited by guarantee)

Section 9 of the Commonwealth Authorities and Companies Act 1997

2012-13 12/11/13 13/11/13 29/10/13 01/10/13

01/10/13

√

Coordinator-General for Remote Indigenous Services2 Statutory office holder

Section 28 (1) of the Coordinator-General for Remote Indigenous Services Act 2009

2012-13 12/11/13 13/11/13 29/10/13 04/10/13

04/10/13

√

Department of Families, Housing, Community Services and Indigenous Affairs 3

Department of State Section 63 of the Public Service Act 1999 (PS Act)

2012-13 12/11/13 13/11/13 29/10/13 04/10/13

04/10/13

√

National Disability Insurance Agency4 CAC Act- statutory

authority

Section 9 of the Commonwealth Authorities and Companies Act 1997 and section 172 of the National Disability Insurance Scheme Act 2013

2013-14

2 The Coordinator-General for Indigenous Services is included in the Department of Families, Housing, Community Services and Indigenous Affairs' Annual Report 2012-13 as Appendix L.

3 Name change to Department of Social Services. 4 First annual report will be 2013-14.

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Department/Agency/Body Type Legislation Reporting

Year

Date tabled Senate

Date tabled House of Represent-

atives

Date received out of session by President of the Senate (if applicable)

Date

submitted to/ received by Minister (if available)

Received during period for Report 1

of 2014

Received during period for Report 2

of 2014

Northern Land Council 5 CAC Act - statutory authority

Section 37 of the Aboriginal Land Rights (Northern Territory) Act 1976, section 9 of the Commonwealth Authorities and Companies Act 1997 and the Native Title Act 1993

2011-12 25/06/13 25/06/13 n/a 30/05/13

30/05/13

Social Security Appeals Tribunal (SSAT) Statutory body Section 25 of the Social Security (Administration) Act 1999

2012-13 12/12/13 03/12/13 n/a 16/10/13

16/10/13

√

5 Report received outside of the reporting periods for 2013 Reports on Annual Reports; Report considered in Report on Annual Reports (No. 1 of 2014).

21

Page 16

Health Portfolio Department/Agency/Body Type Legislation Reporting

Year

Date tabled Senate

Date tabled House of Represent-

atives

Date received out of session by President of the Senate (if applicable)

Date

submitted to/ received by Minister (if available)

Received during period for Report 1

of 2014

Received during period for Report 2 of

2014

Administrator of the National Health Funding Pool Independent Statutory

Officer

Section 241 and 243 of the

National Health Reform Act 2011

2012-13 12/11/13 13/11/13 31/10/13 14/10/13

14/10/13

√

Australian Commission on Safety and Quality in Health Care

CAC Act - Commonwealth authority

Section 111 of the National Health Reform Act 2011 and Section 9 of the Commonwealth Authorities and Companies Act 1997

2012-13 12/11/13 13/11/13 15/10/13 1/10/13

4/10/13

√

Australian Institute of Health and Welfare (AIHW) CAC Act - statutory

authority

Section 9 of the Commonwealth Authorities and Companies Act 1997

2012-13 12/11/13 13/11/13 28/10/13 14/10/13

14/10/13

√

Australian National Preventive Health Agency (ANPHA)

FMA Act - Prescribed agency

Section 53 of the Australian National Preventive Health Agency Act 2010 and Sections 63 and 70 of the Public Service Act 1999

2012-13 12/11/13 13/11/13 31/10/13 23/10/13

28/10/13

√

Australian Organ and Tissue Donation and Transplantation Authority

FMA Act - Prescribed agency

Subsection 28(1) of the Australian Organ and Tissue Donation and Transplantation Authority Act

2012-13 12/11/13 13/11/13 30/10/13 14/10/13

18/10/13

√

22

Page 17

Department/Agency/Body Type Legislation Reporting

Year

Date tabled Senate

Date tabled House of Represent-

atives

Date received out of session by President of the Senate (if applicable)

Date

submitted to/ received by Minister (if available)

Received during period for Report 1

of 2014

Received during period for Report 2 of

2014

Australian Radiation Protection and Nuclear Safety Agency (ARPANSA)

FMA Act Prescribed agency

Section 60(6) of the Australian Radiation Protection and Nuclear Safety Act 1998

2012-13 12/11/13 13/11/13 31/10/13 08/10/13

09/10/13

√

Australian Sports Anti-Doping Authority (ASADA) FMA Act- Prescribed

agency

Subsection 74(1) of the Australian Sports Anti-Doping Authority Act 2006

2012-13 03/12/13 18/11/13 n/a 24/10/13

24/10/13

√

Australian Sports Commission CAC Act - statutory authority

Section 9 Of the Commonwealth Authorities and Companies Act 1997

2012-13 12/11/13 13/11/13 30/10/13 03/10/13

04/10/13

√

Australian Sports Foundation Limited CAC Act - company

(limited by guarantee)

Section 9 Of the Commonwealth Authorities and Companies Act 1997

2012-13 12/11/13 13/11/13 30/10/13 03/10/13

04/10/13

√

Cancer Australia FMA Act -

Prescribed agency

Section 37 of the Cancer Australia Act 2006 and Section 57 of the Financial Management and Accountability Act 1997

2012-13 12/11/13 13/11/13 28/10/13 23/09/13

27/09/13

√

Department of Health and Ageing 6 Department of the State

Section 63 of the Public Service Act 1999 (PS Act) 2012-13 (2

volumes)

12/11/13 13/11/13 31/10/13 23/10/13

23/10/13

√

6 Name change to Department of Health

23

Page 18

Department/Agency/Body Type Legislation Reporting

Year

Date tabled Senate

Date tabled House of Represent-

atives

Date received out of session by President of the Senate (if applicable)

Date

submitted to/ received by Minister (if available)

Received during period for Report 1

of 2014

Received during period for Report 2 of

2014

Food Standards Australia New Zealand (FSANZ) CAC Act - statutory

authority

Section 152 of the Food Standards Australia New Zealand Act 1991 and Schedule 1of the Commonwealth Authorities and Companies Act 1997

2012-13 03/12/13 14/11/13 n/a 24/10/13

25/10/13

√

General Practice Education and Training Limited (GPET) CAC Act - company

(limited by guarantee)

Section 36 of the Commonwealth Authorities and Companies Act 1997

2012-13 03/12/13 03/12/13 n/a 21/10/13

21/10/13

√

Health Workforce Australia (HWA) CAC Act - statutory

authority

Section 9 of the Commonwealth Authorities and Companies Act 1997

2012-13 12/11/13 13/11/13 23/10/13 04/10/13

09/10/13

√

Independent Hospital Pricing Authority (IHPA) FMA Act - Prescribed

agency

Section 193 of the National Health Reform Amendment (Independent Hospital Pricing Authority) Act 2011 and section 57 of the Financial Management and Accountability Act 1997

2012-13 12/11/13 13/11/13 24/10/13 27/09/13

14/10/13

√

24

Page 19

Department/Agency/Body Type Legislation Reporting

Year

Date tabled Senate

Date tabled House of Represent-

atives

Date received out of session by President of the Senate (if applicable)

Date

submitted to/ received by Minister (if available)

Received during period for Report 1

of 2014

Received during period for Report 2 of

2014

National Blood Authority (NBA) FMA Act - Prescribed

agency

Section 44 of the National Blood Authority Act 2003 2012-13 12/11/13 13/13/13 31/10/13 04/10/13

14/10/13

√

National Health and Medical Research Council (NHMRC) FMA Act - Prescribed

agency

Section 83 of the National Health and Medical Research Council Act 1992 and Section 63 of the Public Service Act 1999

2012-13 12/11/13 13/11/13 11/11/13 04/11/13

04/11/13

√

National Health Funding Body (NHFB) FMA Act- Prescribed

agency

Section 70 of the Public Service Act 1999 and 267 of the

National Health Reform Act 2011

2012-13 12/11/13 13/11/13 31/10/13 14/10/13

15/10/13

√

National Health Performance Authority (NHPA) FMA Act - Prescribed

agency

Section 111 of the National Health Reform Act 2011 and Section 57 of the Financial Management and Accountability Act 1997

2012-13 12/11/13 13/11/13 30/10/13 16/10/13

18/10/13

√

National Industrial Chemicals Notification and Assessment Scheme (NICNAS)

Regulatory Scheme - Departmental body

Section 108 of the Industrial Chemicals (Notification and Assessment) Act 1989

2012-13 12/11/13 13/11/13 31/10/13 11/10/13

14/10/13

√

National Mental Health Commission FMA Act - Executive

Agency

Section 70 of the Public Service Act 1999

2012-13 12/11/13 13/11/13 31/10/13 23/10/13

29/10/13

√

25

Page 20

Department/Agency/Body Type Legislation Reporting

Year

Date tabled Senate

Date tabled House of Represent-

atives

Date received out of session by President of the Senate (if applicable)

Date

submitted to/ received by Minister (if available)

Received during period for Report 1

of 2014

Received during period for Report 2 of

2014

Office of the Gene Technology Regulator Statutory office holder -

Departmental body

Section 136 of the Gene Technology Act 2000 2012-13 12/11/13 13/11/13 30/10/13 25/09/13

25/09/13

√

Pharmaceutical Benefits Pricing Authority (PBPA) 7 Independent non-statutory

body

Sub section 34(3) of the Acts Interpretation Act 1901 2012-13 12/11/13 13/11/13 31/10/13 23/10/13

23/10/13

√

Pharmaceutical Benefits Advisory Committee (PBAC) 8 Independent expert body

Section 99YBC of the National Health Act 1953 2012-13 12/11/13 13/11/13 31/10/13 23/10/13

23/10/13

√

Private Health Insurance Administration Council (PHIAC)

CAC Act - statutory authority

Section 9 of the Commonwealth Authorities and Companies Act 1997

2012-13 12/11/13 13/11/13 06/11/13 14/10/13

15/10/13

√

Private Health Insurance Ombudsman (PHIO) FMA Act - Prescribed

agency

Section 253-50 of the Private Health Insurance Act 2007 2012-13 12/11/13 13/11/13 25/10/13 26/09/13

02/10/13

√

Professional Services Review (PSR) FMA Act - Prescribed

agency

Section 106ZQ of the Health Insurance Act 1973 2012-13 12/11/13 13/11/13 31/10/13 16/10/13

18/10/13

√

7 Incorporated into the Department of Health and Ageing's Annual Report 2012-13 as Appendix 2. 8 Incorporated into the Department of Health and Ageing's Annual Report 2012-13 as Appendix 1.

26

Page 21

Human Services Portfolio Department/Agency/Body Type Legislation Reporting

Year

Date tabled Senate

Date tabled House of Represent-

atives

Date received out of session by President of the Senate (if applicable)

Date

submitted to/ received by Minister (if available)

Received during period for Report 1

of 2014

Received during period for Report 2 of

2014

Australian Hearing CAC Act -

statutory authority

Section 9 of the Commonwealth Authorities and Companies Act 1997

2012-13 12/11/13 13/11/13 18/10/13 04/10/13

14/10/13

√

Department of Human Services Department of the State

Section 63 of the Public Service Act 1999 (PS Act) 2012-13 12/11/13 13/11/13 22/10/13 10/10/13

11/10/13

√

27

28

The Senate

Economics

Legislation Committee

Annual reports (No. 2 of 2014)

August 2014

29

© Commonwealth of Australia 2014

ISBN 978-1-76010-056-8

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Australia License.

The details of this licence are available on the Creative Commons website: http://creativecommons.org/licenses/by-nc-nd/3.0/au/

Printed by the Senate Printing Unit, Parliament House, Canberra.

ii

30

Senate Economics Legislation Committee

Members

Senator Sean Edwards, Chair South Australia, LP

Senator Sam Dastyari, Deputy Chair New South Wales, ALP

Senator David Bushby Tasmania, LP

Senator Matthew Canavan Queensland, LNP

Senator Chris Ketter Queensland, ALP

Senator Nick Xenophon South Australia, IND

Secretariat

Dr Kathleen Dermody, Secretary Ms Leonie Lam, Research Officer

PO Box 6100 Parliament House Canberra ACT 2600 Ph: 02 6277 3540 Fax: 02 6277 5719 E-mail: economics.sen@aph.gov.au Internet: www.aph.gov.au/senate_economics

iii 31

32

TABLE OF CONTENTS

Committee members…………………………………………………………iii

Abbreviations ....................................................................................................vii

Chapter 1.............................................................................................................. 1

Overview .................................................................................................................... 1

Introduction ............................................................................................................ 1

Terms of reference .................................................................................................. 1

Purpose and requirements of annual reports .......................................................... 2

Assessment of annual reports ................................................................................. 2

Changes to reporting requirements ......................................................................... 3

Organisational and operational changes ................................................................. 3

Annual reports referred to the committee ............................................................... 4

Additional reports referred to the committee ......................................................... 4

Timeliness ............................................................................................................... 5

Other comments on reports .................................................................................... 7

Chapter 2.............................................................................................................. 9

Individual 2012-13 Annual Reports ....................................................................... 9

Reports under the Industry portfolio ...................................................................... 9

Reports under the Treasury portfolio ................................................................... 11

Appendix 1 ......................................................................................................... 15

Industry portfolio ................................................................................................... 15

List of annual reports tabled in the Senate in the period 1 November 2013 to 30 April 2014, and before report tabling .............................................................. 15

Appendix 2 ......................................................................................................... 17

Treasury portfolio .................................................................................................. 17

33

List of annual reports, and additional reports tabled in the Senate in the period 1 November 2013 to 30 April 2014, and before the tabling of this report .............. 17

Appendix 3 ......................................................................................................... 19

Industry Portfolio Structure (previous) ................................................................ 19

Appendix 4 ......................................................................................................... 21

Industry Portfolio Structure (current) ................................................................... 21

Appendix 5 ......................................................................................................... 23

Treasury portfolio structure (previous) ................................................................ 23

Appendix 6 ......................................................................................................... 27

Treasury Portfolio Structure and outcomes (current) ........................................... 27

vi

34

Abbreviations

AAO Administrative Arrangements Orders

ANAO Australian National Audit Office

CAC Act Commonwealth Authorities and Companies Act 1997

DIICCSRTE Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education

FIRB Foreign Investment Review Board

FMA Act Financial Management and Accountability Act 1997

JCPAA Joint Committee of Public Accounts and Audit

IR&D Act Industry Research and Development Act 1986

PBS Portfolio Budget Statements

PM&C Department of Prime Minister and Cabinet

PM&C guidelines or Requirements for Annual Reports Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies, last revised on 24 June 2013

R&D Research and Development

vii

35

36

Chapter 1 Overview

Introduction 1.1 This is the Senate Economics Legislation Committee's (the committee) second and final report on annual reports in 2014. It provides an overview of the committee's examination of annual reports for the 2012-13 financial year tabled after 31 October 2013 and after the publication of the committee's first report on annual reports in 2014.

Terms of reference 1.2 Annual reports of departments and agencies are referred to Senate committees under Senate Standing Order 25(20). During the reporting period, the Senate Economics Legislation Committee was responsible for the scrutiny of departments and agencies in the following portfolios:

• Industry; and

• Treasury.

1

1.3 The structures and outcomes for each of these portfolios are summarised in Appendices 3, 4, 5 and 6 respectively.

1.4 Standing order 25(20)2 requires the committee to:

(a) examine each annual report referred to it and report to the Senate whether the report is apparently satisfactory;

(b) consider in more detail, and report to the Senate on, each annual report which is not apparently satisfactory, and on the other annual reports which it selects for more detailed consideration;

(c) investigate and report to the Senate on any lateness in the presentation of annual reports;

(d) in considering an annual report, take into account any relevant remarks about the report made in debate in the Senate;

(e) if the committee so determines, consider annual reports of departments and budget-related agencies in conjunction with examination of estimates;

(f) report on annual reports tabled by 31 October each year by the tenth sitting day of the following year, and on annual reports tabled by 30 April each year by the tenth sitting day after 30 June of that year;

(g) draw to the attention of the Senate any significant matters relating to the operations and performance of the bodies furnishing the annual reports; and

1 Journals of the Senate, No. 74, 8 February 2012, pp. 2043-2044.

2 Standing Orders and other orders of the Senate, June 2009, p. 28.

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Page 2

(h) report to the Senate each year whether there are any bodies which do not present annual reports to the Senate and which should present such reports.

Purpose and requirements of annual reports 1.5 Annual reports provide information on the success of departments and agencies in meeting their targets and therefore assist in ensuring the public accountability of government departments and agencies. Their tabling in the Parliament and scrutiny by Senate committees allows Parliament to make informed judgments on the executive's performance in administering government programs.

1.6 Together with Portfolio Budget Statements (PBS) and the Estimates process, annual reports are the principal mechanisms for scrutiny of the operations of government. Indeed, as highlighted in the Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies (Requirements for Annual Reports) released by the Department of the Prime Minister and Cabinet (PM&C), and approved by the Joint Committee of Public Accounts and Audit (JCPAA):

Annual reports serve to inform the Parliament (through the responsible Minister), other stakeholders, educational and research institutions, the media and the general public about the performance of departments in relation to services provided. Annual reports are a key reference document and a document for internal management. They form part of the historical record.3

Annual reports and PB Statements are the principal formal accountability mechanisms between government and departments and from departments through (or on behalf of) government to the Parliament.4

Assessment of annual reports 1.7 Senate Standing Order 25(20) requires that the committee examine reports referred to it to determine whether they are timely and 'apparently satisfactory'. The committee must consider whether the reports comply with the relevant legislation and guidelines for the preparation of annual reports in forming its assessment.

1.8 The requirements are set out as follows:

• Departments of State and Executive Agencies present their annual reports pursuant to subsections 63(2) and 70(2) of Public Service Act 1999, and the Requirements for Annual Reports. As a matter of policy, the Requirements for

3 Department of the Prime Minister and Cabinet, Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies (Requirements for Annual Reports), 24 June 2013, paragraph 5(2).

4 Department of the Prime Minister and Cabinet, Requirements for Annual Reports, 24 June 2013, paragraph 6(1).

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Annual Reports also apply to prescribed agencies under section 5 of the Financial Management and Accountability Act 1997 (FMA Act).5

• Commonwealth authorities and companies present their annual reports pursuant to their own enabling legislation and/or sections 9, 36 and 48 of the Commonwealth Authorities and Companies Act 1997 (CAC Act). Those commonwealth authorities and companies reporting under the CAC Act are required to comply with the Commonwealth Companies (Annual Reporting) Orders 2011 and the Commonwealth Companies (Annual Reporting) Orders 2011, respectively.

• Guidelines for the annual reports of non-statutory bodies are set out in the Government Response to recommendations of the then Senate Standing Committee on Finance and Public Administration on Non-statutory bodies, Senate Hansard, 8 December 1987, pp 2643-45.

1.9 The legislation governing the annual reports of various agencies and the tabling information is shown in Appendices 1, 2 and 3.

1.10 The enabling legislation of some agencies may require that agency to report on matters other than those included in the guidelines, or impose different reporting requirements. The committee's view is that such agencies, while bound by their enabling legislation, should also comply with the PM&C guidelines, to the extent that the requirements do not conflict.

Changes to reporting requirements 1.11 The 2012-13 annual reports are prepared in accordance with the Requirements for Annual Reports. These requirements are reviewed annually and the latest version was issued on 24 June 2013.

1.12 Significant amendments to the most recent Requirements for Annual Reports relate to:

• Spatial reporting—a new requirement has been added for selected portfolio agencies to report on expenditure in relation to the Spatial Reporting Framework.6 This framework was established to improve reporting of regional expenditure.

Organisational and operational changes 1.13 Following the Machinery of Government changes arising from the Administrative Arrangements Orders (AAO) dated 18 September 2013, 3 October 2013 and 12 December 2013, the Department of Industry has simplified its outcomes and programmes structure. The current Report on Annual Reports (No. 2 of 2014), however, is based on the machinery of government changes of March 2013 and

5 Department of the Prime Minister and Cabinet, Requirements for Annual Reports, 24 June 2013, paragraph 3(1).

6 Department of the Prime Minister and Cabinet, Requirements for Annual Reports, 24 June 2013, p. i.

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its accompanying AAO amendments. The Report on Annual Report (No. 1 of 2015), subsequent to this current report, will be based on the more updated AAO amendments.

Annual reports referred to the committee 1.14 The committee reported on annual reports that had been tabled in the Senate by 31 October 2013 in its report Annual reports (No. 1 of 2014) tabled on 19 March 2014.

1.15 Under Standing Order 25(20)(f), the committee is required to report on the annual reports of departments and agencies tabled in the Senate by 30 April each year by the tenth sitting day after 30 June of that year. This year that date is

27 August 2014. This Report on Annual Report also examines annual reports that were tabled after 30 April 2014 but before this report's tabling.

1.16 The following annual reports were referred to the committee for consideration:

Statutory bodies/authorities not under the FMA Act

• Innovation Australia (independent statutory body)

Non-statutory bodies

• Foreign Investment Review Board

1.17 Comments on these individual reports are contained in Chapter 2, where they are listed in alphabetical order under each portfolio.

Additional reports referred to the committee 1.18 In addition to the aforementioned reports, the following reports were also referred to the committee in the reporting period. The committee notes that these reports are referred for information only, and the committee is not required to report on them under the terms of the Standing Order:

• Australia and the International Financial Institutions 2012-13, tabled 13 May 2014 (presented out of session on 23 April 2014);

• Australian Competition and Consumer Commission—Telstra’s Structural

Separation Undertaking Annual Compliance Report 2012-13—Report to the Minister for Communication, tabled 17 June 2014;

• Australian Competition and Consumer Commission—Report

Telecommunications 2012-13: Report 1: Telecommunications competitive safeguards; Report 2: Changes in the prices paid for telecommunications services in Australia, tabled 25 March 2014;

• Australian National Audit Office:

- Report No. 35 of 2013-14—Performance audit, Managing Compliance of High Wealth Individuals: Australian Taxation Office, tabled 16 June 2014;

- Report No. 38 of 2013-14—Performance audit, Establishment and administration of the National Offshore Petroleum Safety and

40

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Environmental Management Authority: National Offshore Petroleum Safety and Environmental Management Authority, tabled 16 June 2014 (presented out of session 12 June 2014);

- Report No. 39 of 2013-14—Performance audit, Compliance Effectiveness Methodology: Australian Taxation Office, tabled 16 June 2014 (presented out of session 12 June 2014);

- Report No. 41 of 2013-14—Performance audit, Commercialisation Australia Program, Department of Industry, tabled on 19 June 2014;

- Report No. 44 of 2013-14—Performance audit, Financial statement audit—Interim phase of the audits of the financial statements of major general government sector agencies for the year ending 30 June 2014: Across agencies, tabled 19 June 2014;

- Report No. 47 of 2013-14—Performance audit, Managing conflicts of interest in FMA agencies: Across agencies, tabled 23 June 2014;

- Report No. 48 of 2013-14—Performance audit, Administration of the Australian Business Register: Australian Taxation Office; Australian Securities and Investments Commission; Department of Industry, tabled 23 June 2014;

- Report No. 49 of 2013-14—Performance audit, The management of physical security: Australian Crime Commission; Geoscience Australia; Royal Australian Mint, tabled 24 June 2014;

- Report No. 50 of 2013-14—Performance audit, Cyber attacks: Securing agencies' ICT systems: Across agencies, tabled 24 June 2014;

- Report No. 54 of 2013-14—Performance audit, Establishment and use of multi-use lists: Across agencies, tabled 26 June 2014;

• Clean Energy Finance Corporation (CEFC)—Report to Responsible Ministers under the Employment Opportunity (Commonwealth Authorities) Act 1987, Section 9 of the Equal Employment Opportunity (Commonwealth Authorities) Act 1987;

• Productivity Commission—

- Report No. 69—Tasmanian shipping and freight, dated 7 March 2014, tabled 24 June 2014;

- Report No. 70—Australia’s Automotive Manufacturing Industry, Section 12 of the Productivity Commission Act 1998, tabled 26 August 2014; and

- Report No. 71—Public Infrastructure, Volumes 1 & 2, Section 12 of the Productivity Commission Act 1998, tabled 15 July 2014.

Timeliness 1.19 Standing Order 25(20)(c) requires the committee to report to the Senate on the late presentation of annual reports. The annual reports considered in this report were tabled after 31 October 2013.

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Departments and FMA Act entities

1.20 Subsection 4(1) of Part 1 of the PM&C Requirements for Annual Reports states that annual reports of departments and agencies under the FMA Act framework are to be presented to each House of Parliament on or before 31 October in the year the report is given. Furthermore, if Senate Supplementary Estimates hearings are scheduled to occur prior to 31 October, it is best practice for annual reports to be tabled prior to those hearings.

CAC Act entities

1.21 Section 9 of the CAC Act stipulates that the deadline for furnishing the minister with the annual reports of Commonwealth authorities is the 15th day of the 4th month after the end of the financial year; that is, 15 October.

1.22 According to section 36(1) of the CAC Act a Commonwealth company must give the responsible Minister:

(a) a copy of the company’s financial report, directors’ report and auditor’s report that the company is required by the Corporations Act 2001 to have for the financial year (or would be required by that Act to have if the company were a public company); and

(b) any additional report under subsection (2); and

(c) in the case of a wholly-owned Commonwealth company—any additional information or report required by the Finance Minister's Orders.

1.23 Section 36(1A) of the CAC Act stipulates that a Commonwealth company must give the report to the responsible Minister by:

(a) if the company is required by the Corporations Act 2001 to hold an annual general meeting—the earlier of the following:

(i) 21 days before the next annual general meeting after the end of the financial year;

(ii) 4 months after the end of the financial year; and

(b) in any other case—4 months after the end of the financial year;

or the end of such further period granted under subsection 34C(5) of the Acts Interpretation Act 1901.

1.24 It should be noted that while the legislative requirements for the tabling of annual reports vary between different types of agencies, the government's policy is 'that all annual reports should be tabled by 31 October'.7

1.25 The committee notes that although the 2012-13 annual report for Innovation Australia was tabled after 31 October 2013, section 46(1) of the Industry Research and Development Act 1986 allows:

7 Department of the Prime Minister and Cabinet, Requirements for Annual Reports, 24 June 2013, p. 2; and Guidelines for the Presentation of Government Documents to the Parliament (Including Government Documents, Government Responses to Committee Reports, Ministerial Statements, Annual Reports and Other Instruments), October 2013, paragraph 4.10.

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…the Board…[to], as soon as practicable after 30 June in each year…prepare and give to the Minister a report on the operations of the Board during the financial year that ended on that 30 June.

1.26 Likewise, the annual reporting requirements contained in the Government Response to the report of the Senate Standing Committee on Finance and Government Operations on non-statutory bodies, Senate Hansard, 8 December 1987, pp. 2643-45

is not clear on the tabling date for non-statutory bodies such as the Foreign Investment Review Board (FIRB). Nonetheless, the committee encourages all bodies required to table annual reports to make them available to prior to the October supplementary estimates to allow senators sufficient time for examination.

Other entities

1.27 Entities reporting in accordance with their own legislation are often required to prepare for the relevant Minister their annual report 'as soon as is practicable' after a particular date. The committee draws attention to subsections 34C(2) and 34C(3) of the Acts Interpretation Act 1901, which stipulate that where no date for providing a report to a Minister is specified, the report should be presented no more than six months after the reporting period, and the Minister must provide the report to the Parliament within 15 sitting days after the Minister receives it.

Other comments on reports 1.28 Under Standing Order 25(20)(a), the committee is required to examine the annual reports of departments and agencies and report to the Senate on whether they are 'apparently satisfactory'. Taking into account the reporting guidelines specified by the legislation under which departments and agencies present their annual reports, the committee considers that the reports it has examined are generally 'apparently satisfactory'.

1.29 Despite this, the committee considers that some aspects of agency annual reports could be improved. One of the things that the committee examines is whether annual reports contain discussion of external scrutiny and parliamentary accountability.

External scrutiny and accountability

1.30 It is required that annual reports:

…must provide information on the most significant developments in external scrutiny of the department and the department's response, including particulars of:

(a) judicial decisions, decisions of administrative tribunals, and decisions by the Australian Information Commissioner, that have had, or may have, a significant impact on the operations of the department; and

(b) reports on the operations of the department, including by the Auditor-General (other than the report on financial statements), a

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Parliamentary committee, the Commonwealth Ombudsman, or agency capability reviews (once released).8

1.31 Annual reports should be a primary reference document for parliamentarians and others looking for information about external scrutiny of government agencies. As noted, the primary purpose of annual reports is accountability to the Parliament— it is therefore important that details about external scrutiny are included in a clear manner in annual reports. Details on parliamentary scrutiny should be included in annual reports, including appearances at Senate estimates hearings (which are the subject of biannual reports to the Senate) and any evidence or submissions made to parliamentary inquiries. The reports should also note that they are subject to scrutiny by this and any other committee.

1.32 One of the key requirements for an annual report is that it should 'be written in plain English and provide sufficient information and analysis for the Parliament to make a fully informed judgement on departmental performance'.9

Compliance indices or lists of requirements

1.33 The inclusion of a compliance index or a list of requirements in annual reports is mandatory for all departments and agencies under the FMA Act and CAC Act. The index preferably should include a nil return entry where the agency has nothing to report under an item. A compliance index is a useful feature of reports and considerably assists the committee's task of assessing reports. It also assists agencies by clearly showing that their compliance obligations have been met. It can be particularly useful for agencies with reporting requirements under various Acts.

1.34 The committee notes that only one annual report examined in this report included a compliance index. The committee wishes to draw to the attention of portfolio departments and agencies that the inclusion of the reporting requirements, particularly the mandatory elements contained in the Requirements for Annual Reports, is an essential part of the reporting and accountability mechanism.

8 Department of the Prime Minister and Cabinet, Requirements for Annual Reports, 23 June 2013, p. 10. Clause 17 of the Commonwealth Authorities (Annual Reporting) Orders 2011 states that the same requirements apply to Commonwealth authorities that present their annual reports in accordance with the provisions of section 9 of the CAC Act. Likewise, Clause 15 of the Commonwealth Companies (Annual Reporting) Orders 2011 requires a similar duty to include details of external scrutiny and reviews.

9 Department of the Prime Minister and Cabinet, Requirements for Annual Reports, 23 June 2013, paragraph 4.

44

Chapter 2

Individual 2012-13 Annual Reports 2.1 On this occasion, the committee has decided to examine in more detail the following annual reports tabled by 30 April 2014 or before the tabling of this Report on Annual Reports:

2.2 For the Industry portfolio:

• Innovation Australia.

2.3 For the Treasury portfolio:

• Foreign Investment Review Board.

Reports under the Industry portfolio

Innovation Australia—annual report 2012-13

Reporting requirements

2.4 The committee considers that Innovation Australia has met its reporting requirements under the Industry Research and Development Act 1986 (IR&D Act).

2.5 However, the committee notes some recurring issues identified in previous reports remain in the 2012-13 report, including:

• the date missing on the transmittal letter; and

• the lack of a compliance index indicating clearly the report was prepared

in accordance with identified sections of the IR&D Act data.

Operational matters

2.6 Innovation Australia is an independent statutory body established to assist with the administration of the Australian Government's innovation and venture capital programs designed to support industry innovation.1

2.7 Established on 27 September 2007, Innovation Australia is an amalgamation of the former Industry Research and Development (IR&D) Board and the Venture Capital Registration (VCR) Board (formerly known as the Pooled Development Funds Registration Board). On its establishment, Innovation Australia assumed the roles, responsibilities and powers of the two former Boards. Its aim is to promote the development, and improve the efficiency and international competitiveness, of Australian industry by encouraging research and development, innovation and venture capital activities. It also provides advice to government in relation to the operation of income tax law legislation (Income Tax Assessment Act 1936 and the

1 Department of Finance and Deregulation, List of Australian Government Bodies and Governance Relations (3rd Edition) as at 1 October 2009, p. 480.

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Income Tax Assessment Act 1997). In 2012-13, Innovation Australia reported to the Minister for Industry and Innovation.2

2.8 During the reporting period, Innovation Australia undertook an analysis of businesses with international development and expansion strategies that had been recipients of Australian Government innovation grants. The results found that participants looking to expand to international markets, partner and grow globally, show stronger performance in terms of employment levels, average turnover, research and development expenditure and intellectual property protection.3

2.9 During 2012-13, Innovation Australia's programs were delivered by AusIndustry, a division within the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education (and which has since changed to the Department of Industry following machinery of government changes).4

2.10 As of 30 June 2013, the following eight committees with specific functions reported to Innovation Australia: R&D Incentives Committee; R&D Tax Incentive Advisory Committee; Commercialisation Australia Board; Clean Technology Investment Committee; Clean Technology Food and Foundries Investment Committee; Clean Technology Innovation Committee; Innovation Grants Committee; and Venture Capital Committee.5

2.11 Among some of the key outputs administered and delivered by Innovation Australia during the 2012-13 reporting period included:6

• the Clean Technology Investment Program, which received 341 applications and 200 approved grants at a total grant value of more than $130 million;

• the Clean Technology Innovation Program, which received 63 applications and 17 approved grants at a total grant value of more than $22 million;

• Commercialisation Australia, which assisted 161 businesses, researchers

and entrepreneurs with grants valued in excess of $55 million; and

• the Research and Development Tax Incentive, which registered

8,270 companies (9,210 research and development performing entities) for the 2011-12 income year with $12.80 billion in reported industry research and development expenditure.

2.12 Other highlights during the 2012-13 reporting period included:

2 Innovation Australia Annual Report 2012-13, p. 78.

3 Innovation Australia Annual Report 2012-13, p. 2.

4 Innovation Australia Annual Report 2012-13, p. 7.

5 Innovation Australia Annual Report 2012-13, pp. 81-82.

6 Innovation Australia Annual Report 2012-13, p. 3.

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• the Clean Technology Food and Foundries Investment Committee,

established on 25 September 2012, which received 424 applications for its program and 271 approved grants at a total grant value of more than $124 million;7

• Innovation Australia's contribution to major areas of police advice in 2013- 13, including its input to the 2012 Review of Venture Capital and Entrepreneurial Skills in Australia and the 2011 Board of Taxation Review of Arrangements under the Venture Capital Limited Partnership Regime;8 and

• Innovation Australia's review of the recommendations of the Smarter Manufacturing for a Smarter Australia report of the non-government members of the Prime Minister's Taskforce on Manufacturing; as a result of which Innovation Australia identified strategic areas for government intervention in its comprehensive submission to the government.9

2.13 In the Chairman's final report, Mr Miles AM, emphasised the importance of Innovation Australia's work in helping to create the type of innovation system that drives success and turns ideas and concepts into new products, processes and services. He cautions that Australian business and industry must embrace innovation, if they are to remain competitive, productive and able to collaborate with the research sector to achieve growth and prosperity.10

Reports under the Treasury portfolio

Foreign Investment Review Board—annual report 2012-13

Reporting requirements

2.14 The committee notes that the annual reports of the Foreign Investment Review Board (FIRB) are not statutorily mandated, but prepared in accordance with the Board's responsibility to advise the government on foreign investment matters.

2.15 The Board is a non-statutory body responsible for advising the Treasurer on Australia's Foreign Investment Policy (the Policy) and its administration. It examines foreign investment proposals submitted under the Foreign Acquisitions and Takeovers Act 1975 (the Act) and under the Policy (the latter being the second element of Australia’s foreign investment screening regime). The Board is supported by the Department.11

7 Innovation Australia Annual Report 2012-13, pp. 3 and 5.

8 Innovation Australia Annual Report 2012-13, p. 3.

9 Innovation Australia Annual Report 2012-13, p. 3.

10 Innovation Australia Annual Report 2012-13, p. 6.

11 Foreign Investment Review Board Annual Report 2012-13, p. 3. See also the Department of Finance and Deregulation's List of Australian Government Bodies and Governance Relations (3rd Edition) as at 1 October 2009, p. 585.

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Operational matters

2.16 In 2012-13, 12,731 foreign investment proposals were approved from a total of 13,322 applications. Of the 13,322 applications for foreign investment approval, none were rejected, though 446 were withdrawn and 145 were exempt as not subject to the Policy or the Act.12

2.17 Of the 12,731 applications decided during the reporting period (those approved or rejected but not those withdrawn or exempt), 11,840 were decided within the Treasury's Foreign Investment and Trade Policy Division (the Division)13 under the Treasurer's authorisation and 891 were decided by a Treasury minister.14 Of these approved applications, 5,535 were approved without conditions imposed and 7,196 were approved subject to conditions, all of which were in the real estate sector.15 In contrast to 2012-13 when there were no proposals rejected, 13 real estate- related proposals were rejected in 2011-12.16

2.18 The real estate sector was the largest destination by value, with approvals in 2012-13 of $51.9 billion. Other major sectors included: mineral exploration and development, with approved proposal investment of $45.1 billion and services (excluding tourism), with approved proposed investment of $25.9 billion.17

2.19 In 2012-13, the United States remained Australia's largest source country for approved proposed investment with $20.6 billion in value. It was followed by Switzerland ($18.4 billion), China ($15.8 billion), Canada ($14.4 billion) and the United Kingdom ($6.8 billion) as the other major source countries for approved proposed investment.18

2.20 During the 2012-13 reporting period, the FIRB reported an increase in its total expenses, from a total of $176,745 in 2011-12 to a total of $257,501 in 2012-13. Similarly, the total expenses of the Division also increased, from $3.9 million in 2011-13 to $4.0 million in 2012-13. The majority of the these expenses were attributed to remuneration of Board members or Divisional employee salary, with the remainder comprising travel, car hire and incidentals for Board members and

12 Foreign Investment Review Board Annual Report 2012-13, p. 9.

13 See Foreign Investment Review Board Annual Report 2012-13, p. 5. The Division provides secretariat functions to the FIRB and is responsible for initial examination of proposals received. It is also responsible for preparing recommendations to the Treasury ministers or the Divisional officers the Treasurer has authorised to make decisions under the Policy and the Act. The Division is also a contact point for foreign investors and their representatives.

14 Foreign Investment Review Board Annual Report 2012-13, p. 9.

15 Foreign Investment Review Board Annual Report 2012-13, p. 19. Real estate conditions ordinarily include those relating to the period during which development must commence, requiring temporary residents to reside in and then sell established dwellings when they cease to reside in them, and reporting requirements.

16 Foreign Investment Review Board Annual Report 2012-13, p. xi.

17 Foreign Investment Review Board Annual Report 2012-13, p. xi.

18 Foreign Investment Review Board Annual Report 2012-13, p. xi.

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administrative costs for the Division. For the 2012-13 period the Division employed an average of 34 staff.19

Senator Sean Edwards

Chair

19 Foreign Investment Review Board Annual Report 2012-13, p. 9.

49

50

Appendix 1

Industry portfolio

List of annual reports tabled in the Senate in the period

1 November 2013 to 30 April 2014, and before report tabling

Reporting body

Legislation Date of

transmittal letter

Date sent to/ Date received by Minister

Date tabled/ presented*

Innovation Australia

Section 46 of the Industry Research and Development Act 1986

Date not provided

8.4.14/ 8.4.14 Senate

17.6.14

HoR 26.5.14

51

52

Appendix 2

Treasury portfolio

List of annual reports, and additional reports tabled in the Senate in the period 1 November 2013 to 30 April 2014, and before the tabling of this report

Reporting body

Legislation Date of

transmittal letter

Date sent to / Date received by Minister

Date tabled/ (presented)

Foreign Investment Review Board (FIRB)

No legislative requirement to table the report

28.4.14 21.1.14/

21.1.14

Senate 13.5.14 (10.4.14)

HoR 13.5.14

53

54

Appendix 3

Industry Portfolio Structure (previous)

Minister for Industry The Hon Ian Macfarlane MP

Parliamentary Secretary to the Minister for Industry The Hon Bob Baldwin MP

Department of Industry Secretary: Ms Glenys Beauchamp PSM

Agency - Australian Nuclear Science and Technology Organisation (ANSTO)

Chief Executive Officer: Dr Adi Paterson

Agency - IP Australia

Director General: Ms Patricia Kelly

Agency - Commonwealth Scientific and Industrial Research Organisation (CSIRO)

Chief Executive Officer: Dr Megan Clark

Agency - Australian Skills Quality Authority (ASQA)

Chief Commissioner: Mr Chris Robinson

Agency - Australian Institute of Marine Science (AIMS)

Chief Executive Officer: Mr John Gunn

Agency - Australian Renewable Energy Agency (ARENA)

Chief Executive Officer: Mr Ivor Frischknecht

Agency - Geoscience Australia

Chief Executive Officer: Dr Chris Pigram

Agency - National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA)

Chief Executive Officer: Ms Jane Cutler

Source: Industry portfolio, Portfolio Additional Estimates Statements 2013-14, p. 4.

55

56

Appendix 4

Industry Portfolio Structure (current)

Minister for Industry The Hon Ian Macfarlane MP

Parliamentary Secretary to the Minister for Industry The Hon Bob Baldwin MP

Australian Nuclear Science and Technology Organisation (ANSTO)

Chief Executive Officer: Dr Adi Paterson

IP Australia

Director General: Ms Patricia Kelly

Commonwealth Scientific and Industrial Research Organisation (CSIRO)

Chief Executive Officer: Dr Megan Clark

Australian Skills Quality Authority (ASQA)

Chief Commissioner: Mr Chris Robinson

Australian Institute of Marine Science (AIMS)

Chief Executive Officer: Mr John Gunn

Geoscience Australia

Chief Executive Officer: Dr Chris Pigram

National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA)

Chief Executive Officer: Ms Jane Cutler

Department of Industry Secretary: Ms Glenys Beauchamp

Source: Industry portfolio, Portfolio Budget Statements 2014-15, p. 13.

57

58

Appendix 5

Treasury portfolio structure (previous)

59

Page 24

60

Page 25

Source: Department of Treasury, Annual Report 2012-13, pp 13-15.

61

62

Appendix 6

Treasury Portfolio Structure and outcomes (current)

Portfolio Minister — Treasurer The Hon Joe Hockey MP Minister for Small Business The Hon Bruce Billson MP

Assistant Treasurer Senator the Hon Mathias Cormann Parliamentary Secretary to the Treasurer The Hon Steven Ciobo MP

Department of the Treasury

Secretary: Dr Martin Parkinson

Informed decisions on the development and implementation of policies to improve the wellbeing of the Australian people, including by achieving strong, sustainable economic growth, through the provision of advice to government and the efficient administration of federal financial relations

Australian Bureau of Statistics

Acting Statistician: Mr Jonathan Palmer

Informed decisions, research and discussion within governments and the community by leading the collection, analysis and provision of high quality, objective and relevant statistical information

Australian Competition and Consumer Commission

Chairman: Mr Rod Sims

Lawful competition, consumer protection, and regulated national infrastructure markets and services through regulation, including enforcement, education, price monitoring and determining the terms of access to infrastructure services

Australian Office of Financial Management

Chief Executive Officer: Mr Rob Nicholl

The advancement of macroeconomic growth and stability, and the effective operation of financial markets, through issuing debt, investing in financial assets and managing debt, investments and cash for the Australian Government

Australian Prudential Regulation Authority

Chairman: Dr John Laker AO (until 30 June 2014) Mr Wayne Byres (from 1 July 2014)

Enhanced public confidence in Australiaʼs financial institutions through a framework of prudential regulation which balances financial safety and efficiency, competition, contestability and competitive neutrality

Australian Securities and Investments Commission

Chairman: Mr Greg Medcraft

Improved confidence in Australia’s financial markets through promoting informed investors and financial consumers, facilitating fair and efficient markets and delivering efficient registry systems

Australian Taxation Office

Commissioner: Mr Chris Jordan AO

Confidence in the administration of aspects of Australiaʼs taxation and superannuation systems through helping people understand their rights and obligations, improving ease of compliance and access to benefits, and managing non-compliance with the law

Clean Energy Finance Corporation

Chief Executive Officer: Mr Oliver Yates

Facilitate increased flows of finance into Australiaʼs clean energy sector, applying commercial rigour to investing in renewable energy, low-emissions and energy efficiency technologies, building industry capacity, and disseminating information to industry stakeholders

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Treasury Portfolio Structure and outcomes (continued)

Commonwealth Grants Commission Secretary: Mr John Spasojevic

Informed Government decisions on fiscal equalisation between the States and Territories through advice and recommendations on the distribution of GST revenue and health care grants

Corporations and Markets Advisory Committee

Convenor: Ms Joanne Rees

Informed decisions by Government on issues relating to corporations regulation and financial products, services and markets through independent and expert advice

Inspector-General of Taxation Inspector-General: Mr Ali Noroozi

Improved tax administration through community consultation, review and independent advice to Government

National Competition Council

President: Mr David Crawford

Competition in markets that are dependent on access to nationally significant monopoly infrastructure, through recommendations and decisions promoting the efficient operation of, use of and investment in infrastructure

Office of the Auditing and Assurance Standards Board

Chairman: Ms Merran Kelsall

The formulation and making of auditing and assurance standards that are used by auditors of Australian entity financial reports or for other auditing and assurance engagements

Office of the Australian Accounting Standards Board

Chairman: Mr Kevin Stevenson

The formulation and making of accounting standards that are used by Australian entities to prepare financial reports and enable users of these reports to make informed decisions

Productivity Commission

Chairman: Mr Peter Harris

Well-informed policy decision-making and public understanding on matters relating to Australia’s productivity and living standards, based on independent and transparent analysis from a community-wide perspective

Royal Australian Mint

Chief Executive Officer: Mr Ross MacDiarmid

The coinage needs of the Australian economy, collectors and foreign countries are met through the manufacture and sale of circulating coins, collector coins and other minted like products

Source: Treasury portfolio, Portfolio Budget Statements 2014-15, pp 6-7.

64

The Senate

Education and Employment

Legislation Committee

Annual reports (No. 2 of 2014)

August 2014

65

© Commonwealth of Australia

ISBN: 978-1-76010-057-5

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Australia License.

The details of this licence are available on the Creative Commons website:

http://creativecommons.org/licenses/by-nc-nd/3.0/au/.

This document was produced by the Senate Standing Committee on Education and Employment and printed by the Senate Printing Unit, Parliament House, Canberra.

66

MEMBERSHIP OF THE COMMITTEE

Members

Senator Bridget McKenzie, Chair, NATS, VIC

Senator Sue Lines, Deputy Chair, ALP, WA

Senator Lee Rhiannon, AG, NSW

Senator Deborah O'Neill, ALP, NSW

Senator Barry O'Sullivan, NATS, QLD

Senator Anne Ruston, LP, SA

Secretariat

Ms Julia Agostino, Secretary

Ms Natasha Rusjakovski, Principal Research Officer

Ms Jessica Strout, Senior Research Officer

Ms Elise Williamson, Research Officer

Ms Sarah Bainbridge, Administrative Officer

PO Box 6100 Ph: 02 6277 3521

Parliament House Fax: 02 6277 5706

Canberra ACT 2600 E-mail: eec.sen@aph.gov.au

67

68

TABLE OF CONTENTS

MEMBERSHIP OF THE COMMITTEE ...................................................... iii

CHAPTER 1 ........................................................................................................ 1

Introduction .............................................................................................................. 1

Terms of reference .................................................................................................. 1

Role of annual reports ............................................................................................ 2

Annual reports referred ........................................................................................... 2

Reports not examined ............................................................................................. 2

Method of assessment ............................................................................................. 3

Timeliness in tabling annual reports ...................................................................... 3

General comments on reports ................................................................................. 4

CHAPTER 2 .............................................................................................................. 5

Review of annual reports ........................................................................................ 5

Department of Education, Employment and Workplace Relations ....................... 5

Fair Work Commission .......................................................................................... 7

Coal Mining Industry (Long Service Leave Funding) Corporation ....................... 8

Safe Work Australia ............................................................................................... 8

Road Safety Remuneration Tribunal ...................................................................... 9

Australian National University ............................................................................. 10

Workplace Gender Equality Agency .................................................................... 10

Comments made in the Senate ............................................................................. 11

Bodies not presenting annual reports to the Senate .............................................. 11

APPENDIX 1 ..................................................................................................... 13

Allocation of annual reports to the committee .................................................... 13

APPENDIX 2 ..................................................................................................... 15

Compliance table of annual reports referred ...................................................... 15

69

APPENDIX 3 ..................................................................................................... 17

Administrative Arrangements Order for the Department of Education, Employment and Workplace Relations ................................................................ 17

70

CHAPTER 1 Introduction

1.1 This is the Senate Education and Employment Legislation Committee's (the committee) second report on annual reports for 2014.1 It provides an overview of the committee's examination of annual reports for the 2012-13 financial year.

Terms of reference 1.2 This report was prepared pursuant to Standing Order 25(20) relating to the consideration of annual reports by committees. The Standing Order states:

Annual reports of departments and agencies shall stand referred to the committees in accordance with an allocation of departments and agencies in a resolution of the Senate. Each committee shall:

(a) Examine each annual report referred to it and report to the Senate whether the report is apparently satisfactory.

(b) Consider in more detail, and report to the Senate on, each annual report which is not apparently satisfactory, and on the other annual reports which it selects for more detailed consideration.

(c) Investigate and report to the Senate on any lateness in the presentation of annual reports.

(d) In considering an annual report, take into account any relevant remarks about the report made in debate in the Senate.

(e) If the committee so determines, consider annual reports of departments and budget-related agencies in conjunction with examination of estimates.

(f) Report on annual reports tabled by 31 October each year by the tenth sitting day of the following year, and on annual reports tabled by 30 April each year by the tenth sitting day after 30 June of that year.

(g) Draw to the attention of the Senate any significant matters relating to the operations and performance of the bodies furnishing the annual reports.

(h) Report to the Senate each year whether there are any bodies which do not present annual reports to the Senate and which should present such reports.2

1 See Education and Employment Legislation Committee, Annual reports (No. 1 of 2014).

2 Amended 24 August 1994, 13 February 1997, 11 November 1998, 3 December 1998, 13 February 2002, 19 November 2002, 14 August 2006: with effect from 11 September 2006, 13 May 2009: with effect on 14 May 2009, 29 September 2010, 8 February 2012, 13 November 2013.

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Role of annual reports 1.3 Annual reports place a great deal of information about government departments and agencies on the public record. Accordingly, the tabling of annual reports is an important element of accountability to Parliament, assisting in the effective examination of the performance of departments and agencies, and the administration of government programs.

Annual reports referred 1.4 In accordance with Senate Standing Order 25(20)(f) this report examines those annual reports tabled between 1 November 2013 and 30 April 2014. The committee examined the following reports:

Departmental Reports

 Department of Education, Employment and Workplace Relations — Annual Report for 2012-13.3

Statutory authorities/bodies

 Fair Work Commission - Report for 2012-13

 Safe Work Australia - Report for 2012-13

 Road Safety Remuneration Tribunal - Report for 2012-13

 Workplace Gender Equality Agency - Report for 2012-13

Commonwealth companies under the Commonwealth Authorities Companies Act 1997 (CAC Act)

 Australian National University - Report for 2013

 Coal Mining Industry (Long Service Leave Funding) Corporation - Report for 2012-13

1.5 The tabling dates of these reports are listed at Appendix 2. Details of all annual reports referred to the committee are set out at Appendix 1.

Reports not examined 1.6 The committee is not obliged to report on Acts, statements of corporate intent, surveys, corporate plans or errata. The following documents were referred to the committee but not examined:

 Schools Assistance Act 2008—Report on financial assistance granted to each state in respect of 2011;

 Education and Care Services Ombudsman, National Education and Care Services Freedom of Information and Privacy Commissioners—Report for 2012-13.

3 Under the Administrative Arrangement Order on 18 September 2013, the Department of Education, Employment and Workplace Relations became two separate departments, the Department of Education and the Department of Employment.

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Method of assessment 1.7 Senate Standing Orders require the committee to examine the annual reports referred to it to determine whether they are timely and ‘apparently satisfactory’. In making this assessment, the committee considers whether the reports comply with the relevant requirements for the preparation of annual reports of departments and authorities.

1.8 The requirements are set down in the following instruments:

 for portfolio departments: the Public Service Act 1999, sub sections 63(2) and

70(2), and the Requirements for Departmental Annual Report, for Departments, Executive Agencies and Financial Management and Accountability Act 1997 (FMA Act) Bodies, Department of Prime Minister and Cabinet, revised May 2014;

 for Commonwealth authorities and companies: the Commonwealth Authorities and Companies Act 1997, in particular sections 9, 36 and 48, the Commonwealth Companies (Annual Reporting) Orders 2011, and the Corporations Act 2001; and

 for non-statutory bodies: the guidelines are contained in the Government

response to the Senate Standing Committee on Finance and Public Administration Report on Non-Statutory bodies.4

Timeliness in tabling annual reports 1.9 Standing Order 25(20)(c) requires the committee to report to the Senate on the late presentation of annual reports.

1.10 Annual reports must be tabled in Parliament by 31 October each year, except where an agency's own legislation specifies a timeframe for its annual report.5 Those agencies reporting under the CAC Act are required to provide their annual reports to the minister by the 15th day of the fourth month after the end of the financial year. Where the financial year ends on 30 June, this deadline translates to 15 October.6

1.11 The committee recognises that some agencies are required to comply with other timeframes stipulated in their enabling legislation, for example as soon as practicable after 30 June. Nonetheless, the committee reminds all agencies that the government considers it best practice for annual reports to be tabled by 31 October each year.

4 Senate Hansard, 8 December 1987, pp 2643-45.

5 Department of Prime Minister and Cabinet, Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies, June 2012, p. 2.

6 Commonwealth Authorities and Companies Act 1997, s9.

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General comments on reports 1.12 The committee has found, under the terms of Standing Order 25(20), that the reports described in chapter 2 are apparently satisfactory except for timeliness in some cases.

74

CHAPTER 2 Review of annual reports

2.1 This chapter examines the following annual reports in greater detail, and provides the Senate with information that may be of particular interest:

 Department of Education, Employment and Workplace Relations;

 Fair Work Commission;

 Coal Mining Industry (Long Service Leave Funding) Corporation;

 Safe Work Australia;

 Road Safety Remuneration Tribunal;

 Australian National University; and

 Workplace Gender Equality Agency.

Department of Education, Employment and Workplace Relations 2.2 The Department of Education, Employment and Workplace Relations (DEEWR) was the Australian Government department responsible for supporting the Commonwealth's policies and programs in the education, employment and workplace relations portfolio. Under the Administrative Arrangement Order on 18 September 2013, DEEWR became two separate departments, the Department of Education and the Department of Employment.1

2.3 The DEEWR Secretary, Ms Lisa Paul AO, noted that 2012-13 was one of the most significant years for achievements for DEEWR across the department's four areas of responsibility — early childhood, school education and youth, employment and workplace relations.2 Ms Paul highlighted the delivery of reforms to provide quality early childhood education and creating greater opportunities of sustained employment for job seekers with a disability. The Secretary noted that DEEWR recorded an operating budget surplus of $1.4 million for 2012-13.3

2.4 With an increasing number of families relying on early childhood education and care services to support workforce participation and to help balance their work and family responsibilities, the department facilitated more than 40 Early Childhood Education and Care Regional Roundtables across Australia.4 The roundtables were an

1 Administrative Arrangement Order, 18 September 2013, (viewed 10 July 2014), http://www.dpmc.gov.au/parliamentary/docs/aao_20130918.pdf

2 Department of Education, Employment and Workplace Relations, Annual Report 2012-13, p. 2.

3 Department of Education, Employment and Workplace Relations, Annual Report 2012-13,

pp. 2-3.

4 Department of Education, Employment and Workplace Relations, Annual Report 2012-13,

p. 15.

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initiative to bring together early childhood service providers, educators and other community and training stakeholders to develop local solutions to workforce challenges.5

2.5 DEEWR worked to close the gap for Aboriginal and Torres Strait Islander Australians in educational outcomes. This included supporting 526 participants in the Youth Mobility Program which supports young people from remote communities with post-school pathways.6 DEEWR also initiated 70 new projects in 2012 through the Parental and Community Engagement Program to support Aboriginal and Torres Strait Islanders parents to be involved in their children's education and schooling.7

2.6 Through the Disability Employment Broker program DEEWR aimed to create employment outcomes for Disability Employment Services participants in small to medium sized businesses in a regional location and industry sector. The program aimed to foster awareness of the advantages of employing people with a disability and focusing on ability rather than disability. The program started on

1 July 2012 and was completed by 30 June 2013. The program found jobs for 68 people with a disability, placements for work experience for 37 people and training for 20 people.8

2.7 DEEWR represented the Australian Government at the 102nd session of the International Labour Conference in Geneva in June 2013 as well as representing Australia at three International Labour Organization (ILO) governing body meetings. Departmental delegates discussed measures to improve social dialogue and the role of jobs in achieving environment sustainability. The delegates were also influential in the conference's decision to adopt a resolution to discontinue ILO sanctions in Myanmar.9

2.8 The committee notes that on 11 October 2013 DEEWR wrote to the Ministers for Education and Employment advising that the department's report would be tabled on 28 November 2013 and that the delay was a result of administrative adjustments due to machinery of government changes. Both Ministers agreed to the extension.

2.9 The committee considers the DEEWR 2012-13 annual report to be well presented and easy to navigate and in compliance with reporting requirements.

5 Department of Education, Employment and Workplace Relations, Annual Report 2012-13, p. 15.

6 Department of Education, Employment and Workplace Relations, Annual Report 2012-13, p. 26.

7 Department of Education, Employment and Workplace Relations, Annual Report 2012-13, p. 26.

8 Department of Education, Employment and Workplace Relations, Annual Report 2012-13, p. 70.

9 Department of Education, Employment and Workplace Relations, Annual Report 2012-13, p. 91.

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Fair Work Commission 2.10 The Fair Work Commission (the Commission) is Australia's national workplace relations tribunal. Under section 577 of the Fair Work Act, the Commission exercises its power in a way that is fair and just, open and transparent and promotes harmonious and cooperative workplace relations. The Commission has the power under the Fair Work Act to resolve unfair dismissal claims, set the minimum wage and approve enterprise agreements.10

2.11 The annual report for 2012-13 outlined the Commission's launch of Future Directions in October 2012. Future Directions contains 25 initiatives aimed at improving quality and performance of the services provided by the Commission and in the eight months since its release, 20 of the 25 initiatives have been implemented. Justice Iain Ross AO, President, highlights that as with any justice institution, the Commission is accountable to the community it serves and as a part of providing accountability, the Commission is committed to providing regular reports on the progress of implementing Future Directions.11

2.12 Ms Bernadette O'Neill, General Manager of the Commission, discussed the Commission's role as the regulator of registered organisations and the completion of the investigations into the Health Services Union (HSU). The investigations and subsequent litigation in relation to the HSU brought the role of the Commission in relation to registered organisations to the forefront. It also demonstrated the complexity and importance of their regulatory work.12 Over the reporting year, substantial cultural change has taken place for the Commission to become a more proactive and effective regulatory. The Regulatory Compliance branch has taken into account the challenges and issues from the HSU matter, initiating a large number of inquiries and investigations into registered organisations.13

2.13 During the annual reporting period, the Commission implemented a new organisational structure, with four branches instead of six. The Commission maintained a very high settlement rate of 81 per cent in unfair dismissal conciliations while achieving high client satisfaction levels.14 The workload of the Commission was much the same as the previous year with the number of applications decreasing slightly but the number of hearings and conferences conducted by the Members increased slightly.15

2.14 The committee notes that the Commission sought an extension to table the annual report prior to 8 November 2013, which was granted by the Minister for Employment, Senator the Hon. Eric Abetz.

10 Fair Work Commission, Annual Report 2012-2013, pp. 10-11.

11 Fair Work Commission, Annual Report 2012-2013, p. 3.

12 Fair Work Commission, Annual Report 2012-2013, p. 4.

13 Fair Work Commission, Annual Report 2012-2013, p. 4.

14 Fair Work Commission, Annual Report 2012-2013, p. 5.

15 Fair Work Commission, Annual Report 2012-2013, p. 2.

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Coal Mining Industry (Long Service Leave Funding) Corporation 2.15 The Coal Mining Industry (Long Service Leave Funding) Corporation, established in 1992, provides reimbursement payments to employers providing long service leave to workers in the black coal mining industry in New South Wales, Queensland, Western Australia and Tasmania.

2.16 The Corporation's investment objective is to obtain a net return from investment that exceeds inflation by at least four per cent per annum over rolling five year periods, as measured against the Consumer Price Index.16 Another Corporation's investment objective is that the Corporation's assets be invested such that there is a less than a 1/3 probability of the employer levy recommended by the actuary rising above 2.7 per cent per annum. The Coal Mining Industry reported that the annual average return of the last five years is 7.48 per cent with an average real rate of 5.12 percent, after adjustment for movement in inflation.17

2.17 The committee notes there is no information on the Corporation's environmental performance, disability strategy or its occupational health and safety strategy. The annual report does not include a glossary or an alphabetical or compliance index. The committee also notes the page numbers were hard to follow, starting again from Financial Statements. The committee suggests that the Corporation should take action to address these shortcomings in the next report. The committee also notes the annual report was received by the Minister outside the reporting requirements on 2 December 2013, but is aware that the timing of the federal election may have affected timeliness.

Safe Work Australia 2.18 Safe Work Australia is a statutory agency that was established on 1 November 2009 under the Safe Work Australia Act 2008. Safe Work Australia is the principal body leading the development of national policy to improve health and safety and workers compensation but does not undertake any regulatory functions.18

2.19 The Chief Executive Officer, Mr Rex Hoy outlined that 2012-13 was a great year for Safe Work Australia and for work health and safety in Australia. For the fourth consecutive year, Safe Work Australia has met all of its key performance indicators against their three outcome areas in the Portfolio Budget Statements.19 In June 2013 a final review of the National Occupational Health and Safety Strategy 2002-2012 was published, recognising the significant reduction in the number of work related fatalities and injuries over the last 10 years. Mr Hoy notes that there was a 47 per cent decrease in the number of work related fatalities in Australia, more than twice the strategy's target of 20 per cent over the ten years.20

16 Coal Mining Industry (Long Service Leave Funding) Corporation, Annual Report 2013, p. 9.

17 Coal Mining Industry (Long Service Leave Funding) Corporation, Annual Report 2013, p. 10.

18 Safe Work Australia, Annual Report 2012-13, p. 8.

19 Safe Work Australia, Annual Report 2012-13, p. 9.

20 Safe Work Australia, Annual Report 2012-13, p. 9.

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2.20 In 2012-13, Safe Work Australia focused on two major work health and safety issues in the community, quad bike safety and workplace bullying. In July 2013 after an Australian Government roundtable on quad bike safety, Safe Work Australia launched the QuadWatch initiative.21 With more than 150 Australians dying from quad bike incidents since 2001, the online QuadWatch initiative hosts information on quad bike safety and design and engineering controls to generate community and industry engagement.22 Safe Work Australia has been asked to action 10 of the 23 recommendations listed in the Parliamentary Inquiry into Workplace Bullying 'We Just Want it to Stop', including to urgently progress the draft model Code of Practice: Managing the Risk of Workplace Bullying.23

2.21 The committee finds the Safe Work Australia annual report to be well presented, informative and easy to navigate. The committee encourages timeliness in the presentation of annual reports and notes that this annual report was tabled on 18 November 2013.

Road Safety Remuneration Tribunal 2.22 The Road Safety Remuneration Tribunal (the Tribunal) was established by the Road Safety Remuneration Act 2012 and commenced operation on 1 July 2012. The Tribunal is an independent national tribunal with the objective of promoting safety and fairness in the road transport industry.24

2.23 The Tribunal has four specific functions: making road safety remuneration orders (RSROs); approving road transport collective agreements; dealing with certain disputes relating to road transport drivers; and conducting research into road remuneration-related matters that may affect safety. The Tribunal consulted and published its 1st Annual Work Program, identifying the retail, livestock, bulk grain, interstate long distance and intrastate long distance sectors of the road transport industry as those proposed by the Tribunal to have priority, with a view of making a RSRO.25

2.24 The Tribunal is funded through an appropriation to the Fair Work Commission (the Commission) while remaining a separate entity. From the outset, it was decided that an integrated model of support for the Tribunal and the Commission would be the most efficient, drawing on experience and knowledge from the Commission staff and avoids duplication on staff functions and other resources. Administrative support is shared across information technology, communications, website design and support, human resources and research.26

21 Safe Work Australia, Annual Report 2012-13, p.10.

22 Safe Work Australia, Annual Report 2012-13, p.10.

23 Safe Work Australia, Annual Report 2012-13, p.10.

24 Road Safety Remuneration Tribunal, Annual Report 2012-13, p. 2.

25 Road Safety Remuneration Tribunal, Annual Report 2012-13, p. 2.

26 Road Safety Remuneration Tribunal, Annual Report 2012-13, p. 4.

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2.25 The committee congratulates the Tribunal on the presentation of its inaugural annual report. The committee notes that the annual report meets the requirements of the Financial Management and Accountability Act 1997 and is well presented. The committee notes that the Tribunal sought an extension to table the annual report prior to 8 November 2013, which was granted by the Minister for Employment, Senator the Hon. Eric Abetz.

Australian National University 2.26 Under the Administrative Arrangement Order on 18 September 2013, the Australian National University (ANU) became a part of the Education Portfolio, moving from the Industry, Innovation, Science, Research and Tertiary Education Portfolio.

2.27 Professor Ian Young AO, Vice-Chancellor and President, said in his introduction that responding to the financial situation resulting from the Commonwealth reduction in funding was the biggest issue the ANU faced in 2013. The budget challenges were addressed by engaging directly with staff and students, seeking their suggestions on how to address the issues.27 This led to the Budget Solutions package which will see a reduction in professional staff numbers and a program to reinvest in academic staff. ANU has identified a need to make changes to administrative functions, with their priority remaining to ensure that the challenges do no impact the quality of ANU's research and education.28

2.28 In 2013, it was announced that ANU would be the first Australian university to join edX, the Massive Online Open Course provider set up by MIT and Harvard. Two ANUx courses are being developed, the first on Astronomy and Astrophysics led by Nobel Laureate Professor Brian Schmidt AC, and the second on India, which will be the first edX course delivered in multiple languages.29

2.29 The committee is pleased to see that the annual report covers areas such as work health and safety, the environment and access for people with a disability in great detail. The committee recommends the inclusion of a compliance index to enhance the report's accessibility.

Workplace Gender Equality Agency 2.30 On 6 December 2012 the passage of the Workplace Gender Equality Act 2012 received Royal Assent, replacing the Equal Opportunity for Women in the Workplace Act 1999 and resulting in a name change, the Workplace Gender Equality Agency (the Agency).30 Under the new legislation, focus has moved from equal opportunity for women to gender equality in the workforce, recognising equal remuneration between

27 Australian National University, Annual Report 2013, p. 8.

28 Australian National University, Annual Report 2013, p. 8.

29 Australian National University, Annual Report 2013, p. 9.

30 Workplace Gender Equality Agency, Annual Report 2012-13, p. 6.

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women and men and family and caring responsibilities of women and men as central to achieving gender equality.31

2.31 The Agency noted that the number of employers who registered with the Agency for the purpose of reporting in 2012-13 has significantly increased from 2011-12, up from approximately 70 per cent to 94 per cent. To help relevant organisations prepare for reporting under the Workplace Gender Equality Act 2012, the Agency developed and published educational materials, including videos and podcasts. The Agency also launched a new website in March 2013, making it more informative, easier for users to navigate and compliant with accessibility requirements.32

2.32 The committee congratulates the Agency on its first annual report under its new name. The committee finds the report to be well presented and informative.

Comments made in the Senate 2.33 The committee is obliged, under Senate Standing Order 25(20)(d), to consider any remarks made about these reports in the Senate. The committee is satisfied that there were no such comments to include.

Bodies not presenting annual reports to the Senate 2.34 The committee is required to report to the Senate each year on whether there are any bodies not presenting annual reports to the Senate which should. The committee is satisfied that there are no such bodies at this time.

Senator Bridget McKenzie Chair

31 Workplace Gender Equality Agency, Annual Report 2012-13, p. 6.

32 Workplace Gender Equality Agency, Annual Report 2012-13, p.8.

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APPENDIX 1

Allocation of annual reports to the committee Annuals reports from the following agencies were allocated to the committee during the reporting period.

Education, Employment and Workplace Relations Portfolio

 Department of Education, Employment and Workplace Relations

Education

 Australian Curriculum, Assessment and Reporting Authority

 Australian Institute for Teaching and School Leadership Ltd (AITSL)

 Australian National University (ANU)

 Australian Research Council

 Schools Assistance Act 2008-Report on financial assistance granted to each state in respect of 2011

 Tertiary Education Quality and Standards Agency (TEQSA)

Employment

 Air Passenger Ticket Levy (Collection) Act 2001

 Coal Mining Industry (Long Service Leave Funding) Corporation

 Defence Force Remuneration Tribunal 1

 Equal Opportunity for Women in the Workplace Agency (Workplace Gender Equality Agency)

 Fair Work Building Inspectorate

 Fair Work Commission

 Fair Work Ombudsman

 Remuneration Tribunal

 Road Safety Remuneration Tribunal

 Safe Work Australia

 Safety, Rehabilitation and Compensation Commission and Comcare

Seafarers Safety, Rehabilitation and Compensation Authority (Seacare Authority)

1 Also forwarded to Foreign Affairs, Defence and Trade Committee.

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APPENDIX 2

Compliance table of annual reports referred

List of annual reports referred by the Senate to the committee during the period 1 November 2013 to 30 April 2014

Education, Employment portfolio

Body/Report Enabling legislation and timeliness Letter of Transmittal

Date

Submitted to/Received by Minister

Presented out of session Tabled Timeliness

Australian National University Australian National University Act 1991 28/03/2014 11/04/2014 Reps:

16/06/2014

Senate:

17/06/2014

On time

Coal Mining Industry (Long Service Leave Funding) Corporation

Coal Mining Industry (Long Service Leave) Administration Act 1992

3/10/2013 2/12/2013 Reps:

11/02/2014

Senate: 11/02/2014

Late

Department of Education, Employment and Workplace Relations

Public Service Act 1999 17/10/2013 16/10/2013

17/10/2013

Reps:

13/11/2013

Senate:

13/11/2013

Extension granted

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Body/Report Enabling legislation and timeliness Letter of Transmittal

Date

Submitted to/Received by Minister

Presented out of session Tabled Timeliness

Fair Work Commission Fair Work Act 1999 23/10/2013 23/10/2013 04/11/2014 Reps:

13/11/2013

Senate:

12/11/2013

Extension granted

Road Safety Remuneration Tribunal Road Safety Remuneration Act 2012

23/10/2013 23/10/2013 04/11/2014 Reps:

13/11/2013

Senate:

12/11/2013

Extension granted

Safe Work Australia Safe Work Australia Act 2008 1/10/2013 22/10/2013 Reps:

18/11/2013

Senate: 3/12/2013

Late

Workplace Gender Equality Agency Workplace Gender Equality Act 2012

4/11/2013 4/11/2013

6/11/2013

Reps:

2/12/2013

Senate:

3/12/2013

On time

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APPENDIX 3

Administrative Arrangements Order for the Department of Education, Employment and Workplace Relations

Extract from the Administrative Arrangements Order, made on 16 May 2013. These orders were in place during the reporting period covered.

PART 6 THE DEPARTMENT OF EDUCATION, EMPLOYMENT AND WORKPLACE RELATIONS

Matters dealt with by the Department

 Schools education policy and programs, including vocational education and training in schools, Indigenous school education, but excluding migrant adult education

 Schooling transitions policy and programs including career pathways

 Education and training transitions policy and programs

 Employment policy, including employment services

 Job Services Australia

 Labour market and income support policies and programs for people of working age

 Workplace relations policy development, advocacy and implementation

 Promotion of flexible workplace relations policies and practices, including

workplace productivity

 Co-ordination of labour market research

 Occupational health and safety, rehabilitation and compensation

 Equal employment opportunity

 Work and family programs

 Services to help people with disabilities obtain employment, other than supported employment

 Youth affairs and programs, including youth transitions

 Early childhood and childcare policy and programs

 Co-ordination of early childhood development policy and responsibilities,

including Indigenous early childhood development

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The Senate

Environment and Communications

Legislation Committee

Annual reports (No. 2 of 2014)

August 2014

89

© Commonwealth of Australia 2014 ISBN 978-1-76010-058-2

Committee address PO Box 6100 Parliament House

Canberra ACT 2600 Tel: 02 6277 3526 Fax: 02 6277 5818 Email: ec.sen@aph.gov.au Internet: http://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Environment_and_Co mmunications

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Australia License.

The details of this licence are available on the Creative Commons

website: http://creativecommons.org/licenses/by-nc-nd/3.0/au/.

This document was produced by the Senate Standing Committee on Environment and Communications and printed by the Senate Printing Unit, Parliament House, Canberra.

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Committee Membership

Members

Senator Anne Ruston, Chair LP, South Australia

Senator Anne Urquhart, Deputy Chair ALP, Tasmania Senator Matthew Canavan NATS, Queensland

Senator James McGrath LP, Queensland

Senator the Hon Lisa Singh ALP, Tasmania

Senator Larissa Waters AG, Queensland

Secretariat

Ms Christine McDonald, Secretary

Ms Meryl Hampson, Research Officer

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iv

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Table of Contents

Committee Membership ................................................................................... iii

Chapter 1.............................................................................................................. 1

Introduction .............................................................................................................. 1

Terms of reference .................................................................................................. 1

Allocated portfolios ................................................................................................ 2

Annual reporting requirements ............................................................................... 2

Reports examined ................................................................................................... 2

Reports not examined ............................................................................................. 2

Timeliness ............................................................................................................... 3

Senate debate .......................................................................................................... 4

Australian National Audit Office reports ............................................................... 4

Apparently satisfactory ........................................................................................... 5

Chapter 2.............................................................................................................. 7

Review of selected reports ........................................................................................ 7

Climate Change Authority ...................................................................................... 7

Low Carbon Australia .......................................................................................... 10

Appendix 1 ......................................................................................................... 15

Dates relating to the presentation of reports between 1 November 2013 to 30 April 2014 ................................................................................................................ 15

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Chapter 1 Introduction

1.1 This is the second report on annual reports for 2014 of the Senate

Environment and Communications Legislation Committee (the committee). It provides an overview of annual reports of agencies within the allocated portfolios tabled in the Senate between 1 November 2013 and 30 April 2014.

1.2 Annual reports inform the Parliament, stakeholders and other interested parties of the operations and performance of public sector departments, agencies and companies. They are a primary accountability mechanism. Additionally, annual reports are important reference documents and form part of the historical record.1

Terms of reference 1.3 Under Standing Order 25(20), the annual reports of certain departments and agencies are referred to the committee for examination and assessment. The committee is required to:

(a) Examine each annual report referred to it and report to the Senate whether the report is apparently satisfactory.

(b) Consider in more detail, and report to the Senate on, each annual report which is not apparently satisfactory, and on the other annual reports which it selects for more detailed consideration.

(c) Investigate and report to the Senate on any lateness in the presentation of annual reports.

(d) In considering an annual report, take into account any relevant remarks about the report made in debate in the Senate.

(e) If the committee so determines, consider annual reports of departments and budget-related agencies in conjunction with examination of estimates.

(f) Report on annual reports tabled by 31 October each year by the tenth sitting day of the following year, and on annual reports tabled by 30 April each year by the tenth sitting day after 30 June of that year.

(g) Draw to the attention of the Senate any significant matters relating to the operations and performance of the bodies furnishing the annual reports.

(h) Report to the Senate each year whether there are any bodies which do not present annual reports to the Senate and which should present such reports.

1 Department of the Prime Minister and Cabinet, Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies, 24 June 2013.

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Allocated portfolios 1.4 In accordance with the resolution of the Senate on 12 November 2013, the committee has oversight of the following portfolios:

• Environment; and

• Communications. 2

Annual reporting requirements 1.5 In 2012-13, Commonwealth departments, agencies, authorities and companies operating under either the Financial Management and Accountability Act 1997 (the FMA Act) or the Commonwealth Authorities and Companies Act 1997 (the CAC Act) were required to provide an annual report on their activities, performance and finances. The Public Governance, Performance and Accountability Act 2013 replaced both the FMA Act and the CAC Act on 1 July 2014. However, the annual reports covered by this report were assessed against the requirements under the former Acts.

1.6 Annual reports must also comply with the Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies issued by the Department of the Prime Minister and Cabinet and approved by the Joint Committee of Public Accounts and Audit. These requirements are updated annually. The latest version of the requirements was issued on 29 May 2014 and applies to annual reports for 2013- 14. Therefore, the previous version of the requirements applies to the annual reports examined in this report.

Reports examined 1.7 This report examines the following reports, tabled in the Senate or presented out of session to the President of the Senate and referred to the committee between 1 November 2013 and 30 April 2014:

Statutory authorities

• Climate Change Authority—Annual Report 2012-13; and

• Murray-Darling Basin Authority—Annual Report 2012-13.

Company limited by guarantee

• Low Carbon Australia—Annual Report 2012-13.

Reports not examined 1.8 The committee is not obliged to report on Acts, statements of corporate intent, surveys, policy papers, budget documents, corporate plans or errata. The following were referred to the committee between 1 November 2013 and 30 April 2014 but are not examined in this report:

2 Journals of the Senate, No. 1, 12 November 2013, p. 16.

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3

• Australian Broadcasting Corporation, Equity and Diversity Annual Report

2012-13;

• Australian Communications Consumer Action Network, Funding of Consumer Representation Grants Program to Telecommunications, Annual Report 2012-13;

• Australian Communications and Media Authority, Communications Report

2012-13;

• Australian Competition and Consumer Commission, NBN Points of

Interconnection, July 2013;

• Australian Competition and Consumer Commission, Telstra Compliance Report, October 2013;

• Australian Competition and Consumer Commission, Telecommunications competitive safeguards for 2012-13 and Changes in the prices paid for telecommunications services in Australia 2012-13;

• Department of Communications, Report on Digital Television Transmission

and Reception, February 2014;

• Department of the Environment, The National Heritage List and

Commonwealth Heritage List: 1 July 2008 - 30 June 2013;

• Department of the Environment, Third Independent Review of the Product Stewardship (Oil) Act 2000, Final Report, September 2013;

• National Environment Protection Council, Annual Report 2012-13;

• NBN Co Limited, Independent review under s.151DD of the Competition and

Consumer Act 2010, October 2013; and

• Wet Tropics Management Authority, Annual Report and State of the Wet Tropics Report 2012-13.

Timeliness 1.9 The Requirements for Annual Reports state that an annual report 'is to be presented to each House of the Parliament on or before 31 October in the year in which the report is given'.3 Organisations reporting under the former Commonwealth Authorities and Companies Act 1997 (the CAC Act) were required to present an annual report to the responsible minister on the fifteenth day of the fourth month after the end of the financial year—that is, by 15 October.

1.10 Provision is made under 34C(4)-(7) of the Acts Interpretation Act 1901 for agencies to apply for an extension of time to report. The committee notes that Low Carbon Australia wrote to the Minister for the Environment, the Hon Greg Hunt, on 8 October 2013 requesting an extension due to exceptional circumstances. Those

3 Department of the Prime Minister and Cabinet, Requirements for Annual Reports, 24 June 2013, p. 3.

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circumstances are examined in chapter two of this report. The Minister acknowledged the circumstances and granted an extension of time on 14 October 2013.

1.11 The annual report of the Murray-Darling Basin Authority (MDBA) was tabled in the House of Representatives on 12 December 2013 and in the Senate on 11 February 2014. The letter of transmittal in the report is dated 3 December 2013.

1.12 The committee notes that subsection 214(2) of the Water Act 2007 provides that the Chief Executive of the MDBA must present the Minister with the report 'as soon as practicable after the end of the period'. This was pointed out in the letter of transmittal in both the 2012-13 and 2011-12 MDBA annual reports. As the MDBA is an FMA Act body, the PM&C Requirements for Annual Reports also apply. The Requirements for Annual Reports state that, notwithstanding the time frame provided for in an agency's own legislation, the government's policy is that all annual reports should be tabled by 31 October.4

1.13 The committee considers that the MDBA should seek to provide its report to the Minister in a more timely fashion.

Senate debate 1.14 Under standing order 25(20)(d), the committee is obliged to note any remarks made in the Senate about annual reports. None of the annual reports examined in this report was the subject of Senate debate.

Australian National Audit Office reports 1.15 The Australian National Audit Office (ANAO) undertook audits of the financial statements of Australian Government entities and presented its findings in the report entitled Audits of the Financial Statements of Australian Government Entities for the Period Ended 30 June 2013. The financial statements of the three entities examined in this report on annual reports were found to be satisfactory.

1.16 Aside from its audit of financial statements, the ANAO identified certain other areas to be audited during 2012-13. One of these was Commonwealth environmental watering arrangements. The ANAO report entitled Commonwealth Environmental Watering Activities highlights at several points the collaboration between the MDBA and the Commonwealth Environmental Water Office (CEWO). This collaboration includes reporting, information sharing, research and modelling. The ANAO report states:

The CEWO and the MDBA informed the ANAO that both organisations work together productively on areas of common interest, with each generally satisfied with the breadth and depth of current engagement activity.5

4 Department of the Prime Minister and Cabinet, Requirements for Annual Reports, 24 June 2013, p.3

5 Australian National Audit Office, Audit Report No. 36 2012-13, Commonwealth Environmental Watering Activities, p. 67.

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1.17 The committee notes that the information supplied in the MDBA's annual report appears to endorse the ANAO's findings.

Apparently satisfactory 1.18 Standing order 25(20)(a) requires that the committee report to the Senate on whether the annual reports of departments and agencies in its portfolios are 'apparently satisfactory'. The committee finds that the annual reports examined in this report are of high quality, well presented and meet the standard required of them. The committee therefore considers them to be satisfactory.

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Chapter 2

Review of selected reports

2.1 This chapter examines in detail the annual reports of the Climate Change Authority and Low Carbon Australia.

Climate Change Authority 2.2 The 2012-13 report was the inaugural annual report of the Climate Change Authority. The message from the Chair gives a brief but informative overview of the remit, establishment and work to date of the Authority. It describes the key recommendation of the review of the Renewable Energy Target, which was the first major review undertaken by the Authority. It also outlines the work undertaken in the Reducing Greenhouse Gas Emissions: Targets and Progress Review, which was ongoing at the time of publication of the annual report.

2.3 The Chief Executive Officer's review expands on the points raised by the Chair, providing information on achievements, ongoing work and stakeholder engagement. Of particular note is the completion of the first review of the Renewable Energy Target within six months of the Authority's establishment, including a significant level of stakeholder engagement, and acceptance by the Minister of the majority of the Authority's 34 recommendations.

2.4 The Chief Executive Officer clearly states five actions the Authority will undertake to complete the Reducing Greenhouse Gas Emissions: Targets and Progress Review, which are:

• review Australia's progress towards emissions reduction targets;

• recommend a 2020 emissions reduction target;

• recommend a national emissions budget;

• discuss how Australia might meet emissions reductions goals; and

• recommend caps on emissions. 1

2.5 The committee notes that in the final report of the Reducing Greenhouse Gas Emissions: Targets and Progress Review, released in February 2014, the Authority had achieved this undertaking.

Performance reporting

2.6 The annual report emphasises the independent role of the Climate Change Authority in providing advice to government. Notwithstanding this independence, the report illustrates well the compliance mechanisms under which the Authority operates. The Authority was required to develop its corporate plan and governance structures in 2012-13. In the interim, it ensured performance and governance compliance as follows:

1 Climate Change Authority Annual Report 2012-13, p. 7.

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…the Authority drew on the specific requirements of the Climate Change Authority Act 2011 and the Climate Change Authority Section of the Climate Change and Energy Portfolio Budget Statement 2012-13 for guidance on the operations of the Authority, its outputs and timetable for delivering those outputs.

These documents, along with the governance, direction and compliance requirements of the Financial Management and Accountability Act 1997 and the Public Service Act 1999, provided the Authority with a strong corporate governance environment in the first year of its operation.2

2.7 The corporate plan was published in June 2013, as required by the Climate Change Authority Act 2011. The Authority also established an audit committee, developed a strategic risk profile and undertook a fraud risk assessment in its first year of operation.

2.8 The Climate Change Authority Act 2011 requires the Authority to describe in its annual report its objectives and assess the achievement of those objectives against performance indicators. The 2012-13 annual report clearly lays out the outcome structure, program objective, deliverables and key performance indicators (KPIs) for the Authority. It describes in adequate detail the review of the Renewable Energy Target and assesses the Authority's performance in conducting the review against the KPIs. The assessment section, while satisfactory, would benefit from reference to more in-depth information. For example, more specific detail on the activities undertaken as part of the Renewable Energy Target (RET) review could have been provided. The committee notes that the Authority's publications and website provide evidence of the extensive research and consultations undertaken in the RET review. More detail on this in the annual report would have been helpful.

2.9 While the Chair's message and the Chief Executive Officer's review refer to the Authority's ongoing work, this work has not been included in the performance assessment section of the annual report. Although the work is not complete, more detail on it could have been provided and it could have been provisionally assessed against the KPIs. For example, the Authority's work on the Reducing Greenhouse Gas Emissions: Targets and Progress Review could have been assessed against KPI 3, which covers the transparency and accessibility of the public consultation process. At the time of publication of the annual report, the Authority had published an issues paper on the Targets and Progress Review and the draft report was due for release. The Chair's message states:

In its work to date, the Authority has made a point of consulting widely on its work…3

2.10 By including information on, and assessment of, the consultation process and analysis carried out for the Targets and Progress Review, the Authority could have further strengthened the performance reporting sections of its annual report.

2 Climate Change Authority Annual Report 2012-13, p. 16.

3 Climate Change Authority Annual Report 2012-13, p. 2.

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Financial performance

2.11 The committee notes the statement that the Climate Change Authority is a not-for-profit entity and that the 2012-13 financial statements show a retained surplus.4 The annual report states that the surplus is because the Authority has maintained unallocated appropriation to meet commitments made in 2012-13 that will be paid for in the following financial year.5

2.12 The financial statements in the annual report are comprehensive and accessible. The clear layout of the statements not only greatly assists the reader but integrates them into the body of the report. This clarity also extends to the notes to the financial statements.

2.13 The Authority carries out ongoing analysis of its financial status. The discussion of financial performance states:

The Authority has a monthly reporting and variance analysis process in place to monitor progress against budget. As a result of the above, the Authority has no known or expected risks to its financial sustainability.6

2.14 The Climate Change Authority's financial statements received an unqualified audit from the Australian National Audit Office.

Overall assessment

2.15 The Climate Change Authority 2012-13 annual report meets all the mandatory requirements. It is well presented, clearly laid out and succinct. Slightly expanding the information on the Authority's ongoing work and providing a provisional assessment of that work would enhance the report.

4 Climate Change Authority Annual Report 2012-13, pp 19 and 38.

5 Climate Change Authority Annual Report 2012-13, p. 19.

6 Climate Change Authority Annual Report 2012-13, p. 18.

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Low Carbon Australia 2.16 The 2012-13 Low Carbon Australia annual report was the company's final one. The Chairman's report summarises the circumstances in which Low Carbon Australia (LCA) found itself in 2012-13. In April 2012, all staff of LCA were transferred to the Clean Energy Finance Corporation (CEFC), with the expectation that the company's operations would be integrated with those of the CEFC and the former Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education. However, at the time of presenting its annual report for 2012-13, LCA was awaiting confirmation of the integration. The Chairman's report states:

At the time of writing, Low Carbon Australia remains a legal entity. After the reporting period, following the change of government, after the election held on 7 September 2013, the Minister for the Environment, the Hon Greg Hunt MP directed the Company's Board to cease any winding up of the entity.7

2.17 In acknowledgement of these circumstances, the Minister for the Environment, the Hon Greg Hunt, granted LCA an extension of time to present its annual report.8 The transfer of operations and winding up of the company will be finalised in 2014-15.

2.18 In the annual report, the Chief Executive Officer of Low Carbon Australia expands on the Chairman's overview by describing in more detail the activities of LCA. The CEO's report is informative and well structured, containing suitable examples and analysis—for example, LCA's consultations with peak bodies such as the AiGroup, the Property Council of Australia, and the Refrigerated Warehouse and Transport Association of Australia. The Chief Executive Officer's report states:

Another continued focus was our outreach to business, including through industry associations and peak sectoral groups to communicate both the benefits of energy efficiency investment and the availability of our finance targeted towards such projects…

The result was a solid uptake of Low Carbon Australia finance amongst agribusiness, allied industry, manufacturers and local government.9

Performance reporting

2.19 The annual report divides the performance reporting into two sections. The first applies to the Energy Efficiency Program. The committee notes that Low Carbon Australia's funding deed was changed in 2012-13, allowing the company to broaden its investment in energy efficient projects. Its key performance indicators (KPIs) for the year were:

• deliver cost-effective carbon savings;

7 Low Carbon Australia Annual Report 2012-13, p. 17.

8 Journals of the Senate, No. 1, 12 November 2013, p. 40.

9 Low Carbon Australia Annual Report 2012-13, p. 21.

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• leverage private investment;

• be additional to business as usual;

• minimise delivery risk;

• catalyse future activities; and

• contribute to Low Carbon Australia's financial sustainability. 10

2.20 The committee notes LCA's informative presentation on the KPIs. Also worthy of note is the report's presentation of the company's outcomes and the measures used to gauge those outcomes. Quantitative information and precise explanations give credence to the information. For example, against the KPI 'leverage private investment', the annual report states that the measure used is:

Leverage at least $1 of non-Low Carbon Australia funding for each $1 of Low Carbon Australia investment.11

2.21 The 2012-13 outcome clearly shows that the company exceeded that KPI:

$2.79 attracted for each $1 of Low Carbon Australia investment, of which $2 is private sector investment.12

2.22 Graphs and charts further aid the performance reporting narrative by illustrating LCA's investment allocation, investment by state and investment by sector. Projects funded in 2012-13 are set out in a comprehensive table, showing at a glance where they are located and how they are funded, as well as providing a brief description.

2.23 The second performance reporting section in the annual report applies to the Carbon Neutral Program. This is also a well-structured section. It provides a good mix of qualitative and quantitative information, including a table of participants in the program.

2.24 There are numerous case studies in the annual report. Although these lend a human interest aspect to the report, they describe the achievements of businesses that have received financial support from Low Carbon Australia and are not directly related to LCA's performance. The case studies take up 13 pages of the 2012-13 annual report, which is a considerable number. While the committee acknowledges that case studies illustrate the application of LCA funding, fewer could have achieved the same effect.

2.25 The annual report states that no reports of parliamentary committees examined the operations of LCA in 2012-13.13 However, the committee notes that LCA provided a submission to the Senate Select Committee on Electricity Prices in October 2012 and that Mrs Meg McDonald, Chief Executive Officer of Low Carbon

10 Low Carbon Australia Annual Report 2012-13, p. 25.

11 Low Carbon Australia Annual Report 2012-13, p. 25.

12 Low Carbon Australia Annual Report 2012-13, p. 25.

13 Low Carbon Australia Annual Report 2012-13, p. 75.

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Australia, appeared at a hearing of the select committee and was questioned on LCA's operations.

2.26 On the company's funding obligations, Mrs McDonald stated:

We have a requirement in our funding deed with the Commonwealth to have our funds fully applied—that is, out in the marketplace—by the end of this financial year.14

2.27 The annual report confirms that this requirement has been met:

The Company continued to make investments during the 2011-12 and 2012-13 financial years and by close of the current year had fully applied the Fund.15

Financial performance

2.28 Low Carbon Australia showed a profit of $70 million in the 2012-13 financial year, largely from the release of a CAC Act body payment to net income.

2.29 While responsibility for LCA's programs and staff was transferred to the Clean Energy Finance Corporation in April and May 2013, the company's assets were not transferred until 1 July 2013. This is described in the financial statements in Note 2: Events after balance date:

Effective 1 July 2013 the Company agreed to transfer its net assets by way of a gift to the Clean Energy Finance Corporation—a related entity. These assets included a right to the Company's investment portfolio, cash to meet future obligations under loan agreements that are being novated to the Clean Energy Finance Corporation, furniture and fittings, office equipment and computer related equipment and software and a right to any surplus cash on wind-up of the Company.16

2.30 The complexity of meeting the funding requirement by the end of the financial year, while at the same time transferring operations from LCA to the CEFC, is reflected in the financial statements. The financial information is comprehensive,

but it is necessary to delve into the accompanying notes to gain an accurate picture. The notes do not immediately follow the table they relate to, which adds a level of difficulty.

2.31 For example, the line 'sales of goods and services—related party' in the Statement of Comprehensive Income on page 86 is not explained until page 115 and is actually a description of payment received from the CEFC for the use of LCA staff in setting up its operations.

2.32 Low Carbon Australia's financial statements received an unqualified audit from the Australian National Audit Office (ANAO). The ANAO commented that the

14 Mrs Meg McDonald, Chief Executive Officer, Low Carbon Australia, Committee Hansard, 9 October 2012, p. 21.

15 Low Carbon Australia Annual Report 2012-13, p. 24.

16 Low Carbon Australia Annual Report 2012-13, p. 99.

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financial statements highlighted that LCA was not a going concern. The ANAO stated, however, that this had not caused it to modify its audit opinion.17

Overall assessment

2.33 The Low Carbon Australia 2012-13 annual report is comprehensive and generally well structured. It more than adequately demonstrates the company's performance. The report meets all the mandatory requirements.

Senator Anne Ruston Chair

17 Low Carbon Australia Annual Report 2012-13, p. 122.

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Appendix 1

Dates relating to the presentation of reports between 1 November 2013 to 30 April 2014

Reporting Body Submitted to Minister Received by

Minister

Tabled in House of Representatives

Tabled in Senate

COMMUNICATIONS PORTFOLIO

Australian Broadcasting Corporation Equity and Diversity Annual Report 2012-13

-

21.2.14

24.2.14

3.3.14

Australian Communications and Media Authority Communications Report 2012-13

4.12.13

4.12.13

11.12.13

11.12.13

Australian Communications Consumer Action Network Funding of Consumer Representation Grants Program to Telecommunications, Annual Report 2012-13

11.12.13

11.12.13

11.2.14

11.2.14

Australian Competition and Consumer Commission NBN Points of Interconnection

19.11.13

19.11.13

12.12.13

11.2.14

Telecommunications Competitive Safeguards for 2012-13; and Changes in the Prices Paid for Telecommunications Services in Australia 2012-13, February 2014

12.3.14

12.3.14

20.3.14

25.3.14

Telstra Compliance Report, Compliance with Retail Price Control Arrangements, October 2013

11.11.13

11.11.13

9.12.13

10.12.13

Department of Communications Report on Digital Television Transmission and Reception, February 2014

5.2.14

5.2.14

11.2.14

11.2.14

NBN Co Limited Independent Review Under s.151DD of the Competition and Consumer Act 2010, October 2013

19.11.13

19.11.13

12.12.13

11.2.14

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Reporting Body Submitted to Minister Received by

Minister

Tabled in House of Representatives

Tabled in Senate

ENVIRONMENT PORTFOLIO

Climate Change Authority Annual Report 2012-13 - 1.11.13 13.11.13 12.11.13

Department of the Environment The National Heritage List and Commonwealth Heritage List: 1 July 2008-30 June 2013

20.12.13

20.12.13

11.2.14

11.2.14

Third Independent Review of the Product Stewardship (Oil) Act 2000, Final Report, September 2013

4.11.13

4.11.13

12.12.13

11.2.14

Low Carbon Australia Annual Report 2012-2013 13.11.13 13.11.13 20.11.13 3.12.13

Murray-Darling Basin Authority Annual Report 2012-2013

7.12.13

8.12.13

12.12.13

11.2.14

National Environment Protection Council Annual Report 2012-13

21.1.14

21.1.14

11.2.14

11.2.14

Wet Tropics Management Authority Annual Report and State of the Wet Tropics Report 2012- 13

8.11.13

8.11.13

13.11.13

13.11.13

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The Senate

Finance and Public Administration

Legislation Committee

Annual reports (No. 2 of 2014)

August 2014

111

ii

© Commonwealth of Australia 2014

ISBN 978-1-76010-059-9

Senate Finance and Public Administration Committee Secretariat:

Ms Lyn Beverley (Secretary)

Ms Margaret Cahill (Research Officer)

Ms Sarah Brasser (Administrative Officer)

The Senate PO Box 6100 Parliament House Canberra ACT 2600 Ph: 02 6277 3530 Fax: 02 6277 5809 E-mail: fpa.sen@aph.gov.au Internet: www.aph.gov.au/senate_fpa

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Australia License.

The details of this licence are available on the Creative Commons website:

http://creativecommons.org/licenses/by-nc-nd/3.0/au/.

Printed by the Senate Printing Unit, Parliament House, Canberra.

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Membership of the Committee

Members

Senator Cory Bernardi (Chair) LP, SA

Senator the Hon Kate Lundy (Deputy Chair) ALP, ACT Senator the Hon John Faulkner ALP, NSW

Senator Bridget McKenzie NAT, VIC

Senator Janet Rice AG, VIC

Senator Dean Smith LP, WA

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Table of contents

Membership of the Committee ........................................................................ iii

Chapter 1.............................................................................................................. 1

Introduction ............................................................................................................ 1

Terms of reference .................................................................................................. 1

Allocated portfolios and changes to portfolios ....................................................... 2

Role of annual reports ............................................................................................ 2

Reports examined ................................................................................................... 3

Reports not examined ............................................................................................. 3

Method of assessment ............................................................................................. 4

Non-reporting bodies ............................................................................................. 5

Timeliness ............................................................................................................... 5

Senate debate .......................................................................................................... 7

Assessment of reports ............................................................................................. 7

Chapter 2.............................................................................................................. 9

Review of selected annual reports ........................................................................... 9

Parliamentary Budget Office .................................................................................. 9

Torres Strait Regional Authority .......................................................................... 10

Indigenous Land Corporation ............................................................................... 13

Commonwealth Superannuation Corporation ...................................................... 15

Aboriginal Hostels Limited .................................................................................. 17

ASC Pty Ltd ......................................................................................................... 17

Appendix 1 ......................................................................................................... 19

Dates relating to the presentation of reports between

1 November 2013 to 30 April 2014 ........................................................................ 19

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Chapter 1

Introduction 1.1 The Senate Finance and Public Administration Legislation Committee (the committee) is responsible for examining the annual reports of the parliamentary departments,1 and the departments and agencies of the Prime Minister and Cabinet Portfolio and the Finance Portfolio.

1.2 This is the second report on annual reports for 2014 and provides an overview of selected annual reports presented to the Parliament between 1 November 2013 and 30 April 2014. Copies of this and other committee reports can be obtained from the Senate Table Office, the committee secretariat or online at the committee's web page.

Terms of reference 1.3 Under Senate Standing Order 25(20) the annual reports of certain departments and agencies stand referred to committees for examination and assessment. Each committee is required to:

(a) examine each annual report referred to it and report to the Senate whether the report is apparently satisfactory;

(b) consider in more detail, and report to the Senate on each annual report which is not apparently satisfactory, and on the other annual reports which it selects for more detailed consideration;

(c) investigate and report to the Senate on any lateness in the presentation of annual reports;

(d) in considering an annual report take into account any relevant remarks about the report made in debate in the Senate;

(e) if the committee so determines, consider annual reports of departments and budget-related agencies in conjunction with examination of estimates;

(f) report on annual reports tabled by 31 October each year by the tenth sitting day of the following year, and on annual reports tabled by 30 April each year by the tenth sitting day after 30 June of that year;

(g) draw to the attention of the Senate any significant matters relating to the operations and performance of the bodies furnishing the annual reports; and

(h) report to the Senate each year whether there are any bodies which do not present annual reports to the Senate and which should present such reports.

1 As a matter of comity between the Houses of Parliament, neither House inquires into the operations of the other House. For this reason, neither the annual report of, nor the proposed expenditure for, the Department of the House of Representatives is referred to a Senate committee for review.

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Allocated portfolios and changes to portfolios 1.4 The Senate allocated departments and agencies to committees on 13 November 2013.2 In accordance with that resolution, the committee has responsibility for the oversight of the following:

 Parliament;

 Prime Minister and Cabinet Portfolio (PM&C Portfolio); and

 Finance Portfolio.

1.5 As noted by the committee in its first report for 2014, there were a number changes to the committee's allocated portfolios following amendments to the Administrative Arrangements Order (AAO) of 18 September and 3 October 2013, following the federal election.3 The PM&C Portfolio gained responsibility for most Indigenous policies, programs and service delivery. Indigenous primary healthcare largely remains with the Department of Health and Native Title policy remains with the Attorney-General's Portfolio. The National Mental Health Commission transferred from the PM&C Portfolio to the Health Portfolio. The deregulation function of the Department of Finance was transferred to the Department of the Prime Minister and Cabinet.

1.6 Further amendments to the AAO were issued on 12 December 2013, where responsibility for the administration of the Australian Institute of Aboriginal and Torres Strait Islander Studies Act 1989 was moved from the Prime Minister to the Minister for Education. As the institute was under the oversight of this committee when its annual report was presented to the Parliament and referred for examination, the committee has examined its report on this occasion. However, future reports of the institute will be examined by the Senate Education and Employment Legislation Committee which now has oversight of this agency.

1.7 The committee notes that the reports for the 2012-13 financial year relate to the period prior to the AAO changes noted above.

Role of annual reports 1.8 Annual reports place a great deal of information about government departments and agencies on the public record in relation to the performance, activities, management and financial position of the reporting body. The Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies (PM&C Requirements), note that '[t]he primary purpose of annual reports of departments is accountability, particularly to the Parliament.'4 Annual reports assist the Parliament in the effective examination of the performance of departments and agencies, and the administration of government programs.

2 Journals of the Senate, No. 1, 13 November 2013, pp 88-89.

3 Available from: www.dpmc.gov.au/parliamentary/index.cfm (accessed 14 February 2014)

4 Department of the Prime Minister and Cabinet, Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies, 24 June 2013, p. 3.

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Reports examined 1.9 During the period of 1 November 2013 to 30 April 2014, 16 annual reports of bodies or statutory office holders were presented to the Parliament and referred to the committee. The reports examined are categorised as follows:

Parliamentary departments

 Parliamentary Budget Office - Report for 2012-13

Commonwealth Authorities and Companies Act 1997 bodies

Authorities

 Albury-Wodonga Development Corporation - Report for 2012-13

 Australian Institute of Aboriginal and Torres Strait Islander Studies - Report

for 2012-13

 Torres Strait Regional Authority - Report 2012-13

 Anindilyakwa Land Council - Report for 2012-13

 Indigenous Business Australia - Report for 2012-13

 Indigenous Land Corporation - Report for 2012-13

 Central Land Council - Report for 2012-13

 Tiwi Land Council - Annual Report 2012-13

 Wreck Bay Aboriginal Community Council - Annual Report for 2012-13

 Commonwealth Superannuation Corporation - Report for 2012-13

Companies

 ASC Pty Ltd - Report for 2013

 Outback Stores Pty Ltd - Report for 2012-13

 Aboriginal Hostels Limited - Report for 2012-13

Statutory office holders

 Aboriginal Land Commissioner - Report for 2012-13

 Executive Director of Township Leasing - Report for 2012-13

Reports not examined 1.10 The committee is not obliged to examine reports on the operation of Acts, statements of corporate intent, surveys, policy papers, budget documents, corporate plans or errata. The following documents were also referred to the committee but not examined in this report:

 Australian Public Service Commission - State of the Service Report for

2012-13

 Indigenous Australians - Closing the Gap - Ministerial statement by the

Prime Minister dated 12 February 2014, Prime Minister's report 2014 - Closing the Gap

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 Indigenous Business Australia - Corporate Plan 2014 - 2016

 ASC Pty Ltd Statement of Corporate Intent 2013-2016

 Department of Finance - Consolidated financial statements for the year ended 30 June 2013

 Department of Finance - Certificate of compliance - Report for 2012-13

 Tax Expenditures Statement 2013

 Mid-Year Economic and Fiscal Outlook - 2013-14

 Advances provided under the annual Appropriation Acts - Report for

2012-13

 Campaign Advertising by Australian Government Departments - Full report 2012-13

 Members of Parliament (Staff) Act 1984 - Annual Report 2012-13

 Final Budget Outcome 2012-13 Report by the Treasurer and the Minister for

Finance

 Royal Commission into Institutional Responses to Child Sexual Abuse -

Report of Case Study No. 1 - The response of institutions to the conduct of Steven Larkins, March 2014

Method of assessment 1.11 Senate Standing Order 25(20) requires that the committee examine reports referred to it to determine whether they are timely and 'apparently satisfactory'. The committee must consider whether the reports comply with the relevant legislation and guidelines for the preparation of annual reports in forming its assessment.

1.12 The requirements are set down in the following instruments:

 for portfolio departments and agencies, and the parliamentary departments:

the Public Service Act 1999, sections 63(2) and 70(2), and the Parliamentary Service Act 1999, section 65; or other relevant enabling legislation for statutory bodies which are also prescribed agencies under the Financial Management and Accountability Act 1997 (FMA Act); and the PM&C Requirements;

 for Commonwealth authorities and companies: the Commonwealth Authorities and Companies Act 1997 (CAC Act), in particular, sections 9, 36 and 48; and the Commonwealth Authorities (Annual Reporting) Orders 2011 and the Commonwealth Companies (Annual Reporting) Orders 2011; and

 for non-statutory bodies: the guidelines are contained in the government response to the Senate Standing Committee on Finance and Public Administration Report on Non-Statutory bodies, Senate Hansard, 8 December 1987, pp 2632-45.

1.13 The PM&C Requirements are reviewed annually and, if required, are updated to take into account any changes to reporting requirements in legislation, arising from

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new policy, or recommendations in Parliamentary, Australian National Audit Office (ANAO) or other reports. The PM&C Requirements were amended on 29 May 2014 and will apply to the annual reports for the 2013-14 financial year. The reports examined in this report are for the 2012-13 financial year and, if required, were prepared in accordance with the PM&C Requirements of 24 June 2013.

1.14 The committee notes the commencement of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) on 1 July 2014, which replaced the FMA Act and CAC Act. The next update to the PM&C Requirements will cover reports prepared for the 2014-15 financial year, where significant revisions are expected to accommodate changes under the PGPA Act.5

Changes to PM&C Requirements for 2012-13 reports

1.15 As noted in the committee's first report of 2014, the most significant amendment noted in the current version of the PM&C Requirements, dated 24 June 2013, relates to the new requirement for selected agencies to report on expenditure in relation to the Spatial Reporting Framework.6 It was noted that the two portfolio departments under the committee's oversight were not required to include spatial reporting in the annual reports for the 2012-13 financial year.7

Non-reporting bodies 1.16 Standing Order 25(20)(h) requires that the committee inquire into, and report on, any bodies which do not present annual reports to the Senate but should present such reports.

1.17 On this occasion, the committee makes no recommendation for any organisations not presenting an annual report to do so.

Timeliness 1.18 Annual reports for departments and executive agencies and FMA Act bodies are required to be tabled in Parliament by 31 October each year unless another date is specified in an agency's legislation, charter and/or terms of reference. The PM&C Requirements state that 'it remains the Government's policy that all annual reports should be tabled by 31 October' and further notes that it is best practice for annual reports to be tabled prior to the Supplementary Budget Estimates hearings.8 The committee considers the timely presentation of annual reports to be an important element in accountability and continues to encourage bodies to follow this policy.

5 PM&C Requirements, 29 May 2014, p. i.

6 PM&C Requirements, p. i. Spatial reporting is described as reporting actual expenditure, broken down by program between regional and non-regional Australia, for expenditure that is a grant or transfer, or expenditure that is not a grant or transfer payment but is relevant to what the Government is doing in regional Australia, see PM&C Requirements 24 June 2013, p. 27.

7 It is noted that the requirement for Spatial Reporting has been removed from the latest version of the PM&C Requirements, see PM&C Requirements, 29 May 2014, p. i.

8 PM&C Requirements 24 June 2013, p. 2.

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1.19 Commonwealth authorities reporting under the CAC Act are required to provide an annual report to the responsible minister by the fifteenth day of the fourth month after the end of the financial year. For the standard financial year, this is 15 October. In accordance with section 34C(3) of the Acts Interpretation Act 1901, the Minister is required to present the report to the Parliament within 15 sitting days of that House after the day on which the report was received.

1.20 Commonwealth companies are required under section 36 of the CAC Act to provide a report to the Minister four months after the end of the financial year, which is usually 31 October.9 The Minister is required to table the report in the Parliament as

soon as practicable after receiving it, or in the case of a company required to hold an annual general meeting, as soon as practicable after the meeting.10

1.21 Appendix 1 lists the annual reports tabled (or presented) in Parliament between 1 November 2013 and 30 April 2014, and referred to the committee, with relevant tabling dates. Most reports referred to the committee during this period were presented to the Parliament within the relevant legislative timeframe for annual reporting.

1.22 The first annual report of the Parliamentary Budget Office was presented one day late on 1 November 2013.

1.23 The Central Land Council was late by two days in submitting its report to the Minister on 17 October 2014. However, the Minister tabled the report within 15 sitting days of receipt.

1.24 Both the Tiwi Land Council and the Wreck Bay Aboriginal Community Council sought, and were granted, extensions from the Minister for Indigenous Affairs for the provision of their 2012-13 annual reports. On 16 October 2013, the Tiwi Land Council wrote to the Minister seeking an extension until 15 January 2014 due to procedural and format delays of ANAO contractors completing financial notes. The Wreck Bay Aboriginal Community Council wrote to the Minister on 18 October 2013 and advised of a delay due to the Council not having received the formal final financial report from the ANAO and sought an extension until 31 January 2014.11

9 If a company is required by the Corporations Act 2001 to hold an annual general meeting, the company must give the report to the Minister on whichever is the earlier date of the following:

 21 days before the next annual general meeting after the end of the financial year; or

 four months after the end of the financial year. (see subsection 36(1A) of the CAC Act)

10 CAC Act, Section 36(4).

11 The referred correspondence notifying a delay in the presentation of the annual reports, together with the Minister's responses, were tabled in the Senate on 2 December 2013, in accordance with Section 34C of the Acts Interpretation Act 1901.

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Both reports were subsequently provided to the Minister on or before the extended date, and tabled by the Minister within 15 sittings days of receipt.12

1.25 While most of the reports of CAC Act bodies examined met the relevant legislative tabling timeframe, the committee encourages the presentation of all reports to the Parliament before the Supplementary Budget Estimates hearings to assist in its examination of agencies at this time.

Senate debate 1.26 In accordance with Standing Order 25(20)(d) the committee is required to take into account any relevant remarks about the reports made in debate in the Senate. The committee notes that none of the annual reports examined in this report have been the subject of comments or debate in the Senate.13

Assessment of reports 1.27 Under Standing Order 25(20)(a), the committee is required to examine the annual reports of departments and agencies and report to the Senate on whether they are 'apparently satisfactory'. In its examination of the annual reports referred, the committee found them to be of a satisfactory standard and adhere to relevant guidelines. The committee considers the reports examined to be 'apparently satisfactory'.

12 The Northern Land Council also wrote to the Minister notifying a delay in the provision of its reports on 24 October 2013, 17 January 2014 and 11 March 2014 and was granted an extension to provide its report on each occasion. Its report was subsequently tabled on 17 June 2014 and will be examined in the committee's next report on annual reports.

13 Former Senator Boyce referred to the Torres Strait Regional Authority annual report for 2012- 13 in a speech in the Senate on 14 May 2014 but did not make specific comment on the report, Senate Hansard, 14 May 2014, p. 2666.

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Chapter 2

Review of selected annual reports 2.1 The committee has selected the annual reports of the following bodies for closer examination:

 Parliamentary Budget Office

 Torres Strait Regional Authority

 Indigenous Land Corporation

 Commonwealth Superannuation Corporation

 Aboriginal Hostels Limited

 ASC Pty Ltd

Parliamentary Budget Office 2.2 The 2012-13 annual report is the Parliamentary Budget Office's (PBO) first after commencing operations on 23 July 2012. The PBO is established under the Parliamentary Services Act 1999 to inform the Parliament by providing independent and non-partisan analysis of the budget cycle, fiscal policy and the financial implications of proposals.1 The Parliamentary Budget Officer's review of the year is succinct and provides an overview of the establishment of the office and work program for the first year of operation.2

Performance information

2.3 The Portfolio Budget Statements (PBS) 2012-13 for the PBO advised that performance information, including objectives, deliverables and key performance indicators (KPIs), to support the office's outcome were yet to be developed. This information was expected to be included the PBO's first work plan.3 The 2012-13 work plan was released on 12 October 2012 included the following advice:

The PBO's performance will be judged by the quality, timeliness and relevance of its outputs as assessed by feedback from key Parliamentary stakeholders. The ongoing demand for the PBO's services will also be an important indicator of the PBO's ability to add value to the work of Senators and Members and the policy development process.4

2.4 The committee hopes to see, where possible, the development of quantitative KPIs that enable measurement when assessing the achievement of

1 Parliamentary Budget Office Annual Report 2012-13, p. 6.

2 Parliamentary Budget Office Annual Report 2012-13, pp 3-4.

3 Parliamentary Budget Office, Portfolio Budget Statements 2012-13, p. 9.

4 Parliamentary Budget Office Work Plan 2012-13, p. 7.

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programs, and the inclusion of targets where appropriate.5 The committee notes the ANAO advice on the importance of using quantitative KPIs, including the use of targets as a basis for assessing entity performance:

Targets express quantifiable performance levels or changes of level to be attained at a future date and, as such, allow entity managers and external stakeholders including the Parliament to determine the progress being made in meeting pre-determined program objectives.6

2.5 This section of the report did include useful statistics on response times for costing requests from parliamentarians and responses from Commonwealth bodies to requests from the PBO.7

2.6 It was reported that feedback from parliamentary stakeholders indicated satisfaction with the quality and relevance of outputs, particularly costings of proposals and support for policy development. However, it was also noted that key stakeholders expressed concern about some of the delays the PBO experienced in obtaining information from government bodies.8

Compliance with the PM&C Requirements

2.7 The report generally complies with the PM&C Requirements and includes the mandatory compliance index. It was noted that a number of items in the index were referenced as 'not applicable' which were clearly the case, for example 'spatial reporting'. However, others could not so readily be seen as 'not applicable' to the PBO, for example, items relating to 'policy and practices on the establishment and maintenance of appropriate ethical standards' and 'training and development undertaken and its impact' are both listed as 'not applicable'.9 Agencies are reminded to make the distinction between a reference on the index of 'not applicable' and a 'nil' return for various items where appropriate.

Torres Strait Regional Authority 2.8 The Chairperson's and Chief Executive Officer's messages provided a useful overview of activities and achievements of the Torres Strait Regional Authority (TSRA) during 2012-13. Of particular note was the move to independent elections of the 20 member board in 2012, the first time since the organisation's establishment in 1994. This was possible following amendments

5 The committee notes the subsequent PBSs for the PBO for the financial years 2013-14 and 2014-15 do not include KPIs with targets.

6 Australian National Audit Office, Development and implementation of key performance indicators to support the outcomes and programs framework, Performance Audit Report No. 5 2011-12, p. 21.

7 Parliamentary Budget Office Annual Report 2012-13, pp 20-23.

8 Parliamentary Budget Office Annual Report 2012-13, p. 24.

9 Parliamentary Budget Office Annual Report 2012-13, p. 74.

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to the Aboriginal and Torres Strait Islander Act 2005 (ASTI Act) where 20 electoral wards were established for the region.10

2.9 Also highlighted was the expansion of the scope of activities under the ranger program. It was reported that the program has grown from 33 to 38 land and sea rangers and that funding has been secured for the next five years.11

Performance information

2.10 The performance information provided in the annual report is comprehensive and generally corresponds to the information presented in the PBS for 2012-13. It was noted that two additional KPIs which were not listed in the PBS, were reported on in the annual report.12

2.11 While the KPIs listed in the PBS were quantitative in nature there are no targets included in the PBS. The annual report does, however, include a target in the presentation of the performance result for some KPIs. For example, the KPI of 'Number of CDEP participants who have moved into non-CDEP employment' does not have a target in the PBS. However, the annual report included a target of 50 people per annum for this KPI, with a result of 45 people for 2012-13.13 While the committee commends the TSRA for presenting some results against a target in the annual report, the inclusion of a target measure in the PBS (as well as the result in the subsequent annual report) is a more robust and preferred approach. This would limit the opportunity for an agency to amend a target at the time of presenting the performance results in the annual report.

2.12 The performance section of the report also included comprehensive performance reporting against the objectives set out in the Torres Strait Development Plan 2009-201314 interspersed with the PBS KPI results, in addition to seven case studies for each of the TSRA's seven programs. This approach did not easily facilitate a 'clear read' between the KPIs in the PBS and the results in the annual report and the committee endorses the ANAO view in its recent performance audit of the TSRA service delivery, that:

Improvements could be made in the presentation of information in the TSRA's annual report so the PBS KPIs are grouped together

10 Torres Strait Regional Authority Annual Report 2012-13, pp 2 and 6.

11 Torres Strait Regional Authority Annual Report 2012-13, p. 6.

12 Torres Strait Regional Authority Annual Report 2012-13, p. 84.

13 Torres Strait Regional Authority Annual Report 2012-13, p. 29.

14 The Plan was developed under section 142D of the ATSI Act and outlines seven TSRA programs, listing desired outcomes and benefits to be delivered, see Torres Strait Regional Authority Annual Report 2012-13, p. 12.

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within the report and in the same order as they are presented in the PBS.15

Compliance with Commonwealth Authorities (Annual Reporting) Orders 2011

2.13 The report closely adheres to the requirements of the Commonwealth Authorities (Annual Reporting) Orders 2011 (Authorities Reporting Orders). It included a comprehensive index of the agency's compliance with various legislative reporting requirements, including its enabling legislation, the ATSI Act, the CAC Act, the Environment Protection and Biodiversity Conservation Act 1999, the Work Health and Safety Act 2011 and the Freedom of Information Act 1982.16 Additionally, the report includes an index to sections in the report

where information on the reporting requirements of a Native Title Representative Body17 can be found.18

2.14 Clause 9 of the Authorities Reporting Orders requires annual reports to be presented in plain English and with a clear design. The committee notes the small font for some of the notes to the financial statements19 where the reader may have difficulty reading the document, and hopes this will be addressed in future reports.

2.15 Clause 15 of the Authorities Reporting Orders requires disclosure of decision making processes under the agency's board in relation to director-related entity transactions. The report includes, at notes to the financial statements 12A and 12B, a comprehensive list of both loans to directors and director-related entities, and grants made to director-related entities.20 The TSRA is commended for its transparency with regard to related entity disclosures.21 The committee notes the extensive number of disclosures for both loans and grants compared to other Commonwealth authorities whose reports were also examined.

15 Australian National Audit Office, Torres Strait Regional Authority - Service Delivery, Performance Audit Report No. 10 2013-14, p. 70.

16 Torres Strait Regional Authority Annual Report 2012-13, pp 200-207

17 Native Title Representative Bodies (NTRB) are organisations appointed under the Native Title Act 1993 to assist Indigenous people with all aspects of their native title claims. NTRBs are appointed by the Department of the Prime Minister and Cabinet to cover a region in Australia.

18 Torres Strait Regional Authority Annual Report 2012-13, pp 208-210

19 See for examples, Torres Strait Regional Authority Annual Report 2012-13, pp 150-157, 162-163 and 172.

20 Torres Strait Regional Authority Annual Report 2012-13, pp 172-173.

21 See section 142F of the ATSI Act which provides the TSRA with powers to make grants and loans.

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Indigenous Land Corporation Letter of transmittal

2.16 The committee notes an error in the letter of transmittal to the Minister relating to the presentation of the annual report of the Indigenous Land Corporation (ILC) to the Parliament. The letter states:

Section 9(3) of the Commonwealth Authorities and Companies Act 1997 requires that you table the report in each House of the Parliament as soon as practicable.22

2.17 Section 9(3) of the CAC Act was repealed in 2008. Sections 9(1) and 9(2) of the CAC Act deal with the preparation of the annual report and its provision to the Minister. Section 9(1) notes that 'section 34C (other than subsection 34C(2)) of the Acts Interpretation Act 1901 applies to annual reports prepared under this section.' This requires the Minister to present the report to the Parliament within 15 sittings days of that House after the day on which the report is received (as outlined in chapter 1 of this report).

Chairperson's report

2.18 The Chairperson's report notes a number of achievements throughout the year. These included a national consultation process on the National Indigenous Land Strategy, the development of an ILC Native Title Policy, the acquisition of Gowan Brae wilderness area in Tasmania, and the Fish River Fire Project in the Northern Territory.23

2.19 Also noted in the Chairperson's report was the write down of $62.25m in the value of Ayers Rock Resort (ARR) as at 30 June 2013. The ARR was purchased in 2010 and is owned and managed by Voyages Indigenous Tourism Australia Pty Ltd, a wholly owned subsidiary of the ILC. The Chairperson noted in the annual report:

The 2012-13 financial year also presented significant challenges for the ILC's portfolio of tourism businesses. The tourism sector continued to face difficulties posed by the ongoing reduction in overseas visitor numbers because of the Global Financial Crisis, the high Australian dollar and reductions in the frequency of commercial flights to key destinations such as Ayers Rock Resort.

This combination of global and domestic factors led to the Voyages Directors determining that the fair value of ARR assets at 30 June 2013 are $250m, resulting in a writedown of $62.25m in the resort's value (See further note on page 26). In response, during 2012-13 the

22 Indigenous Land Corporation Annual Report 2012-13, p. i.

23 Indigenous Land Corporation Annual Report 2012-13, pp 4-8.

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ILC Board instigated a comprehensive review of the ARR acquisition and potential strategies going forward.24

2.20 The purchase of the ARR has been examined at recent estimates hearings of this committee. Evidence received on this issue indicates that there were concerns about the governance processes around the decision to purchase the asset.25

2.21 The annual report does note that a comprehensive review of the ARR acquisition was to be undertaken. The McGrathNicol report was an independent end-to-end review of the ARR purchase and was publicly released in December 2013. While the timing of its release precluded the McGrathNicol report from being available to inform the ILC's 2012-13 annual report, the committee commends the ILC for including information on this challenge and would expect to see a more detailed explanation and discussion around this issue in next year's report. The committee reminds agencies that annual reports should not only highlight achievements for the year, but also provide a balanced account of any challenges facing an organisation and the strategies being implemented to address these.

Performance reporting

2.22 Performance results against KPIs and deliverables are presented in tabular form and include the 2012-13 target to assist in assessing performance. The report notes the removal of a KPI as set out in the 2012-13 PBS and cites a change in a priority outcome as the reason.26

2.23 This section of the report dealing with performance against deliverables includes 39 case studies, some of which run to multiple pages.27 While the inclusion of these items can be informative and provide practical examples of activities that are undertaken by agencies, they may detract from the clear presentation of performance information and should be used in moderation to keep reports concise and focussed on the agency's performance and achievement of outcomes. The committee has previously cautioned agencies against excessive use of extraneous information in annual reports, such as case studies, reminding agencies that the primary purpose of such reports is accountability to the Parliament.28

24 Indigenous Land Corporation Annual Report 2012-13, p. 6. See also references to this issue at pp 26, 109 and 168-169.

25 See for example, Senate Finance and Public Administration Legislation Committee, Examination of Additional Estimates 2013-14, tabled document: correspondence from the ILC Chair to the Prime Minister, dated 14 November 2013.

26 Indigenous Land Corporation Annual Report 2012-13, p. 32.

27 Indigenous Land Corporation Annual Report 2012-13, pp 48-115.

28 See Finance and Public Administration Legislation Committee, Report on Annual Reports: Report 1 of 2013, p. 9.

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Compliance with Authorities Reporting Orders

2.24 The report complies with the Authorities Reporting Orders and provides a comprehensive listing of page references against requirements of the Orders as required under Clause 21. Some items in the orders with multiple parts are separately page referenced in the index, providing a helpful level of detail to easily access the required information. Conversely, the Item dealing with 'related entity transactions' is quite specific in the information required, however, the page reference in the compliance index to this item was the broad page range of 138 to 231.29

2.25 The committee notes that the report also includes a compliance index to the PM&C Requirements. Although not an FMA Act agency, the ILC is commended for providing this additional level of accountability in annual reporting.30

Commonwealth Superannuation Corporation 2.26 Both the Chairman and Chief Executive Officer in their reports noted the strong investment returns the Commonwealth Superannuation Corporation (CSC) achieved for the 2012-13 financial year. It was noted that:

Each default investment fund for the CSS, PSS, MilitarySuper and PSSap, involving more than 90% of our members, posted double digit returns in 2012-13. These far exceeded our annual return objective of the CPI plus 3.5%.31

2.27 The report included a summary of the work program focus for 2012-13. This included planning for the introduction of the MySuper investment product which was launched on 1 July 2013; and the development and the implementation of the pension product, the CSCri, which provides CSS, PSS and PSSap members who want to invest their lump sum to receive regular payments with a retirement income account.32

Performance reporting

2.28 In discussion on accountability, the report summarises the organisation's KPIs in meeting its key program objective of maximising members' superannuation account balances as:

 a long-term nominal investment performance target of a real return of 3.5% over a prospective three year horizon, achieved within Board approved risk parameters;

 compliance with relevant law;

29 Indigenous Land Corporation Annual Report 2012-13, p. 257.

30 Indigenous Land Corporation Annual Report 2012-13, pp 253-256.

31 Commonwealth Superannuation Corporation Annual Report 2012-13, p. 14.

32 Commonwealth Superannuation Corporation Annual Report 2012-13, pp 14 and 17.

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 meet obligations as an RSE (Registrable Superannuation Entity) licence and AFSL (Australian Financial Services licence) holder; and

 administration quality as reflected in the satisfaction level of members, beneficiaries and employers with the service provided through ComSuper, as CSC’s delegate, to standards set by CSC.33

2.29 It is noted that the KPIs above are the set as contained in the PBS for 2013-14 for the CSC, however, they are not an exact reflection of the KPIs as listed in the PBS for 2012-13. While the last three are similar, the first KPI differs to that listed in the 2012-13 PBS, which is:

CSC has a long term nominal investment performance target of at least CPI + 4.5% per annum average after tax and fees, and positive fund returns 24 years out of 30 years.

2.30 Where performance measures have changed, it is expected that a clear explanation and the reason for the change is noted with the new KPI.

2.31 The committee notes the useful table included in the previous year's annual report which clearly stated KPI results against targets for the 2011-12 financial year and was a useful reference which clearly summarised the organisation's performance,34 but was omitted from this year's report.

Compliance with Authorities Reporting Orders

2.32 The report includes a compliance index and generally complies with the Authorities Reporting Orders. Some items required in the Orders are not listed in the index and it could be assumed are not applicable to the agency. However, as noted earlier, it is useful if agencies include all items required in the Orders in the index with a 'nil' or 'not applicable' reference where appropriate.

2.33 The report is well designed with information organised and accessible, generally meeting the requirements of Clause 9 of the Reporting Authorities Orders which require plain English and clear design. Extensive use of tables

and charts is used to present information which greatly assists with presentation of information, particularly in regard to the details on the super schemes and fund investment. Particularly useful was the inclusion in this year's report of a section on '2012-13 highlights' at the front of the report which provided snapshot graphical representations for funds under management, default investment performance and scheme membership.35

33 Commonwealth Superannuation Corporation Annual Report 2012-13, p. 30

34 Commonwealth Superannuation Corporation Annual Report 2011-12, p. 23.

35 Commonwealth Superannuation Corporation Annual Report 2012-13, pp 12-13.

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Aboriginal Hostels Limited 2.34 Aboriginal Hostels Limited (AHL) is a wholly-owned Commonwealth company and prepares a report in accordance with the requirements of the Commonwealth Companies (Annual Reporting) Orders 2011 (Companies Reporting Orders).

2.35 The report closely adheres to the requirements of the Companies Reporting Orders. The mandatory compliance index is included and contains a column for 'comments' which provides a brief explanation for some items when required as a quick reference rather than being directed to elsewhere in the report. The index is detailed and itemises clauses with multiple parts separately providing a page reference or comment for each.36

2.36 The Chairperson's and Chief Executive Officer's overview notes that the opening of the Tonky Logan Hostel in Townsville and the inaugural intake of students to the remote secondary education hostel in Wadeye as notable achievements during 2012-13. Also noted was a review of the condition of the company's property portfolio which led to a new budget measure of $6.2 million over two years for the upgrade of facilities with the highest needs. It is expected the funding will allow for the renovation of nine hostels across Northern Australia.37

Performance information

2.37 The AHL report is well presented and makes use of graphs and tables to aid in the presentation of various performance data. Performance information is aligned with the deliverables and KPIs as presented in the PBS for 2012-13. The committee noted the high satisfaction rating of 92 per cent in response to its client survey during 2012-13 for AHL-operated hostels. This compared to an 88 per cent satisfaction rating for hostels funded under the Community and Corporate Partnerships Program.38

2.38 The inclusion of trend information over four years for some performance categories, such as number of hostels, guest capacity and bed occupancy, was useful for comparative purposes.39

ASC Pty Ltd 2.39 The annual report notes that ASC Pty Ltd (ASC) is a proprietary company limited by shares registered under the Corporations Act 2001 (Corporations Act) and is subject to the CAC Act. All the shares issued in the

36 Aboriginal Hostels Limited Annual Report 2012-13, pp 138-141.

37 Aboriginal Hostels Limited Annual Report 2012-13, p. 2.

38 Aboriginal Hostels Limited Annual Report 2012-13, p. 22.

39 Aboriginal Hostels Limited Annual Report 2012-13, p. 20.

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capital of the ASC are owned by the Minister for Finance. ASC was proclaimed a Government Business Enterprise under the CAC Act on 11 June 2004.40

2.40 The Chairman's letter of transmittal advises that the report was prepared in accordance with section 9 of the CAC Act.41 As a Commonwealth company, the annual report of ASC should be prepared in accordance with section 36 of the CAC Act under Part 4 dealing with reporting and other obligations for Commonwealth companies. Section 9 of the CAC Act deals with reporting obligations of Commonwealth authorities.

Compliance with the Companies Reporting Orders

2.41 As a wholly-owned Commonwealth company, it is expected that ASC provide in its annual report the information required under the Companies Reporting Orders, in addition to that required by the Corporations Act. The report did not include an index to the reporting requirements, required under clause 18 of the orders. While the annual report generally included information required under the Companies Reporting Orders, specific reference to some items did not appear to be included, for example, a reference to an exemption to the directors from any requirement of the orders (clause 6). The inclusion of a compliance index assists the reader when a 'nil' return is recorded, clearly indicating that the item's absence from the report is not an omission.

Overview and performance

2.42 The Chairman's report advised that the company achieved annual revenue of $920.6 million and profit after tax of $9.9 million; this compares to the 2012 results of $802.2 million and $14.7 million respectively.42

2.43 The ASC also presents to the Parliament a statement of Corporate Intent which represents the understanding between ASC and the Minister for Finance on its expected level of performance for the following three years. This should be read in conjunction with the annual report.

2.44 The Managing Director's report notes that the new In Service Support Contract for the maintenance and support for the Collins Class Submarines is having a positive impact on the management of the maintenance program. Also noted was the significant progress on the Air Warfare Destroyer project with the consolidation of Ship 01 progressing rapidly.43

Senator Cory Bernardi Chair

40 ASC Pty Ltd Annual Report 2013, p. 23.

41 ASC Pty Ltd Annual Report 2013, p. 3.

42 ASC Pty Ltd Annual Report 2013, p. 6.

43 ASC Pty Ltd Annual Report 2013, pp 8-9.

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Appendix 1

Dates relating to the presentation of reports between 1 November 2013 to 30 April 2014 Reporting Body Submitted to

Minister

Received by Minister Tabled in the Senate or

presented out of sitting (*)

Tabled in the House of Representatives

PARLIAMENT

Parliamentary Budget Office - Report for 2012-13 - - 01/11/13* 18/11/13

PRIME MINISTER AND CABINET PORTFOLIO

Australian Institute of Aboriginal and Torres Strait Islander Studies - Report for 2012-13 10/10/13 16/10/13 1/11/13* 13/11/13

Torres Strait Regional Authority - Report 2012-13 Corrigendum

03/10/13 16/10/13 13/11/13

13/5/14

13/11/13

Aboriginal Hostels Limited - Report for 2012- 13 09/10/13 16/10/13 03/12/13 18/11/13

Anindilyakwa Land Council - Report for 2012-13 30/09/13 16/10/13 03/12/13 21/11/13

Australian Public Service Commission - State of the Service Report for 2012-13 13/11/13 13/11/13 03/12/13 02/12/13

Outback Stores Pty Ltd - Report for 2012-13 02/10/13 16/10/13 03/12/13 19/11/13

Indigenous Business Australia - Report for 2012-13 02/10/13 16/10/13 03/12/13 19/11/13

Indigenous Land Corporation - Report for 2012-13 04/10/13 16/10/13 03/12/13 20/11/13

Central Land Council - Report for 2012-13 17/10/13 31/10/13 10/12/13 09/12/13

Aboriginal Land Commissioner - Report for 2012-13 10/10/13 31/10/13 24/01/14* 11/02/14

Executive Director of Township Leasing - Report for 2012-13 21/10/13 31/10/13 29/01/14* 11/02/14

Indigenous Australians - Closing the Gap

Ministerial statement by the Prime Minister dated 12 February 2014

Prime Minister's report 2014 - Closing the Gap

12/02/14 12/02/14

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Reporting Body Submitted to

Minister

Received by Minister Tabled in the Senate or

presented out of sitting (*)

Tabled in the House of Representatives

Tiwi Land Council - Annual Report 2012-13 19/12/13 17/01/14 04/03/14 24/02/14

Wreck Bay Aboriginal Community Council - Annual Report for 2012-13 31/01/14 12/02/14 18/03/14 18/03/14

Indigenous Business Australia - Corporate Plan 2014 - 2016 11/12/13 17/12/13 18/03/14 18/03/14

Royal Commission into Institutional Responses to Child Sexual Abuse - Report of Case Study No. 1 - The response of institutions to the conduct of Steven Larkins, March 2014

23/4/14 24/4/14 24/4/14* 13/5/14

FINANCE AND DEREGULATION PORTFOLIO

Albury-Wodonga Development Corporation - Report for 2012-13 14/10/13 23/10/13 13/11/13 13/11/13

ASC Pty Ltd - Report for 2013 Statement of Corporate Intent 2013-2016

(Also referred to the Foreign Affairs, Defence and Trade Legislation Committee)

04/10/13 23/07/13

09/10/13 29/07/13

13/11/13 13/11/13

Final Budget Outcome 2012-13 Report by the Treasurer and the Minister for Finance 20/09/13 20/09/13 13/11/13 13/11/13

Commonwealth Superannuation Corporation - Report for 2012-13 11/10/13 14/10/13 03/12/13 14/11/13

Department of Finance - Consolidated financial statements for the year ended 30 June 2013

19/11/13 19/11/13 11/12/13 11/12/13

Department of Finance - Certificate of compliance - Report for 2012-13 18/12/13 18/1213 31/01/14* 11/02/14

Tax Expenditures Statement 2013 20/01/14 20/01/14 30/01/14* 11/02/14

Mid-Year Economic and Fiscal Outlook - 2013-14 16/12/13 16/12/13 12/02/14 12/02/14

Advances provided under the annual Appropriation Acts - Report for 2012-13 09/02/14 09/02/14 13/02/14 24/02/14

Campaign Advertising by Australian Government Departments - 2012-13 19/02/14 19/02/14 21/02/14* 24/02/14

Members of Parliament (Staff) Act 1984 - Annual Report 2012-13 29/11/13 29/11/13 21/02/14* 24/02/14

136

The Senate

Foreign Affairs, Defence and Trade

Legislation Committee

Annual reports (No. 2 of 2014)

August 2014

137

© Commonwealth of Australia

ISBN 978-1-76010-060-5

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Australia License.

The details of this licence are available on the Creative Commons website:

http://creativecommons.org/licenses/by-nc-nd/3.0/au/.

Printed by the Senate Printing Unit, Parliament House, Canberra

138

Membership of the Committee Members

Senator Chris Back, LP, WA (Chair) Senator Alex Gallacher, ALP, SA (Deputy Chair) Senator David Fawcett, LP, SA Senator Anne McEwen, ALP, SA Senator James McGrath, LP, QLD Senator Scott Ludlam, AG, WA

Secretariat

Mr David Sullivan, Secretary Mr Owen Griffiths, Principal Research Officer Ms Shennia Spillane, Senior Research Officer Ms Penny Bear, Research Officer Mr Joshua Wrest, Administrative Officer

Senate Foreign Affairs, Defence and Trade Committee Department of the Senate PO Box 6100 Parliament House Canberra ACT 2600 Australia

Phone: + 61 2 6277 3535 Fax: + 61 2 6277 5818 Email: fadt.sen@aph.gov.au Internet: http://www.aph.gov.au/senate_fadt

iii

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TABLE OF CONTENTS

Membership of the Committee ........................................................................ iii

Preface .................................................................................................................. 1

Terms of reference .................................................................................................. 1

Role of annual reports ............................................................................................ 2

Assessment of annual reports ................................................................................. 2

Annual reports considered ...................................................................................... 3

General comments on the annual reports ............................................................... 3

Conclusion .............................................................................................................. 4

Chapter 1.............................................................................................................. 5

Director of Military Prosecutions ........................................................................... 5

Judge Advocate General ....................................................................................... 11

Appendix 1 ......................................................................................................... 15

Compliance tabled for the annual reports tabled during the period 1 November 2013 to 30 April 2014 and referred to the committee ......................... 15

v

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142

Preface

Terms of reference

1. The committee is responsible for examining annual reports of departments and agencies within two portfolios: Defence (including the Department of Veterans' Affairs), and Foreign Affairs and Trade.

2. Under Standing Order 25(20), the committee is required to report on annual reports tabled by 31 October each year by the tenth sitting day of the following year, and on reports tabled by 30 April each year by the tenth sitting day after 30 June of that year. This report also examines annual reports that were tabled after 30 April 2014.

3. The standing order states:

Annual reports of departments and agencies shall stand referred to the committees in accordance with an allocation of departments and agencies in a resolution of the Senate. Each committee shall:

a) Examine each annual report referred to it and report to the Senate whether the report is apparently satisfactory;

b) Consider in more detail, and report to the Senate on, each annual report which is not apparently satisfactory, and on the other annual reports which it selects for more detailed consideration;

c) Investigate and report to the Senate on any lateness in the presentation of annual reports;

d) In considering an annual report, take into account any relevant remarks about the report made in debate in the Senate;

e) If the committee so determines, consider annual reports of departments and budget-related agencies in conjunction with examination of estimates;

f) Report on annual reports tabled by 31 October each year by the tenth sitting day of the following year, and on annual reports tabled by 30 April each year by the tenth sitting day after 30 June of that year;

g) Draw to the attention of the Senate any significant matters relating to the operations and performance of the bodies furnishing the annual reports; and

h) Report to the Senate each year whether there are any bodies which do not present annual reports to the Senate and which should present such reports.

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Role of annual reports

4. Annual reports place a great deal of information about government departments and agencies on the public record. Accordingly, the tabling of annual reports continues to be an important element of accountability to Parliament and more broadly to the Australian people. The information provided in annual reports assists Parliament in the effective examination of the performance of departments and agencies and the administration of government programs. Indeed, as noted in the Requirements for annual reports:

Annual reports serve to inform the Parliament (through the responsible Minister), other stakeholders, educational and research institutions, the media and the general public about the performance of departments in relation to services provided. Annual reports are a key reference document and a document for internal management. They form part of the historical record.

Annual reports and Portfolio Budget Statements (PB Statements) are the principal formal accountability mechanisms between government and departments and from departments through (or on behalf of) government to the Parliament.1

Assessment of annual reports

5. The committee examines annual reports to determine whether they are timely and 'apparently satisfactory' and whether they comply with the relevant requirements for the preparation of annual reports of departments and authorities.2 The requirements are set down in the following instruments:

• for portfolio departments and bodies prescribed under the FMA Act: Public Service Act 1999, subsections 63(2) and 70(2), and the Requirements for annual reports for departments, executive agencies and FMA Act bodies, Department of Prime Minister and Cabinet, 24 June 2013;

• for Commonwealth authorities and companies: the Commonwealth Authorities

and Companies Act 1997 (CAC Act); Commonwealth authorities and companies reporting under the CAC Act are required to comply with the Commonwealth Authorities (Annual Reporting) Orders 2011 and the Commonwealth Companies (Annual Reporting) Orders 2011, respectively;

• and for non-statutory bodies: the guidelines are contained in the government

response to the report of the Senate Standing Committee on Finance and

1 Requirements for annual reports for departments, executive agencies and FMA Act bodies, Department of the Prime Minister and Cabinet, 24 June 2013, p. 3. www.dpmc.gov.au/guidelines/index.cfm

2 Refer to Appendix 1 for a table of the reports referred to the committee for scrutiny.

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Government Operations on Non-statutory Bodies, Senate Hansard, 8 December 1987, vol s124, pp. 2643-45 (requirements were modified in 1987).

6. For FMA Act bodies, significant amendments in the Requirements for Annual Reports for the 2012-13 period relate to:

• Spatial reporting—a new requirement has been added for selected portfolio agencies to report on expenditure in relation to the Spatial Reporting Framework.3

7. For Commonwealth authorities and companies, the annual reports for the 2011-12 financial year were the first annual reports to be prepared under the new orders with the exception of clauses dealing with related entity transactions, which apply to annual reports for each financial year ending on or after 30 June 2013.

Annual reports considered

8. The annual reports of the following organisations have been examined by the committee:

Defence portfolio

Director of Military Prosecutions

Judge Advocate General

General comments on the annual reports

Timeliness in tabling reports

9. Under Senate Standing Order 25(20)(c), the committee must report to the Senate any lateness in the presentation of annual reports.

10. In accordance with the Requirements for Annual Reports published in June 2012, agencies are required to present:

A copy of the annual report...to each House of Parliament on or before 31 October in the year in which the report is given. If Senate

Supplementary Budget Estimates hearings are scheduled to occur prior to 31 October, it is best practice for annual reports to be tabled prior to those hearings.4

11. The committee found that the reports were presented within a reasonable timeframe. A table detailing the dates relating to the timeliness of presentation is at Appendix 1.

3 The committee notes that this requirement was not applicable to any of the FMA Act bodies under its portfolio coverage.

4 Requirements for annual reports for departments, executive agencies and FMA Act bodies, Department of Prime Minister and Cabinet, 24 June 2013, Part 1, section 4.

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Matters of significance

12. In accordance with Senate Standing Order 25, the committee is to note any significant matters relating to the operations and performance of the bodies presenting their annual reports. The committee found no matters of significance relating to the operations and performance of the bodies presenting their reports.

Comments made in the Senate

13. The committee is obliged, under Senate Standing Order 25(20)(d), to consider any remarks made about these reports in the Senate. There were no comments in the Senate on any of these reports.

Bodies not presenting annual reports to the Senate

14. The committee is required to report to the Senate each year on whether there are any bodies that do not present annual reports to the Senate and which should present such reports. The committee is satisfied that there are no bodies within these portfolios that did not meet their reporting requirements to the Senate.

Standard of reports

15. The committee found all reports to be generally of a high standard. They effectively described the function, activities and financial positions of the various departments and agencies. The committee therefore found all of the annual reports to be 'apparently satisfactory'.

Conclusion

16. The committee found that the reports submitted by the Director of Military Prosecutions and the Judge Advocate General were of a high standard. The following chapter provides a brief overview of some of the matters that arose during the reporting period between 1 January 2013 and 31 December 2013.

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Chapter 1

Annual reports

Director of Military Prosecutions

1.1 The Director of Military Prosecutions Report for the period 1 January to 31 December 2013 was tabled in the Senate on 14 May 2014. This is the seventh report presented to Parliament by the Director of Military Prosecutions (DMP).

1.2 The inaugural DMP, Brigadier McDade, ended her tenure on 11 July 2013. The new DMP, Brigadier M. A. Griffin AM, was appointed on 5 August 2013 for a period of five years. In the intervening period Group Captain Christopher Ward was acting DMP. In the annual report, Brigadier Griffin took the opportunity to thank Brigadier McDade for her 'hard work and determined efforts in establishing the office as the independent and effective prosecution service that it is.'1

1.3 The Office of the DMP is a statutory body created under the Defence Force Discipline Act 1982 (DFDA). The position of the DMP was created by section 188G of the DFDA and commenced on 12 June 2006.2 The office holder must be a legal practitioner with not less than five years experience, and be a member of the Permanent Navy, Regular Army or Permanent Air Force, or be a member of the Reserves rendering full-time service, holding a rank not lower than the rank of Commodore, Brigadier or Air Commodore.3

1.4 Under section 188GA of the DFDA, the DMP has the following functions:

(a) to carry on prosecutions for service offences in proceedings before a court martial or a Defence Force magistrate, whether or not instituted by the Director of Military Prosecutions;

(b) to seek the consent of the Directors of Public Prosecutions as required by section 63;

(c) to make statements or give information to particular persons or to the public relating to the exercise of powers or the performance of duties or functions under this Act;

(d) to represent the service chiefs in proceedings before the Defence Force Discipline Appeal Tribunal; and

(e) to do anything incidental or conducive to the performance of any of the preceding functions.4

1 Director of Military Prosecutions, Annual Report 2013, p. 1. 2 Director of Military Prosecutions, Annual Report 2013, p. 1. 3 Director of Military Prosecutions, Annual Report 2013, p. 1. 4 Defence Force Discipline Act 1982, section 188GA(1).

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1.5 The primary function of the DMP is to carry on prosecutions for service offences in proceedings before courts martial or Defence Force magistrates.5

1.6 Section 196B of the DFDA requires the DMP, as soon as practicable after 31 December each year, to provide the Minister with a report relating to the operations of the DMP.6

Personnel

1.7 Brigadier Griffin reported that at the commencement of the reporting period the DMP had established 13 positions for prosecutors, a senior non-commissioned officer performing the duties of a Service Police Investigations Liaison Officer, and seven civilian support staff.7

External Associations

1.8 Brigadier Griffin noted that, since 2007, prosecutors from the Office of the DMP have been admitted as members of the Australian Association of Crown Prosecutors (AACP). The Office of the DMP is an organisational member of the International Association of Prosecutors.8

Internal (Department of Defence) Liaison

1.9 During the reporting period, Brigadier Griffin provided regular reports to the Chief of the Defence Force and the Service Chiefs. Quarterly reports on the operations and workload of the Office of the DMP were provided to the Minister.9

1.10 Brigadier Griffin noted that the Military Justice Coordination Committee (MJCC) has provided an effective forum to initiate amendments to the DFDA. This committee was created in response to the Street/Fisher recommendation that a committee be formed to:

Oversee and coordinate DFDA action items and facilitate future efficiencies across the principal responsible DFDA agencies.10

1.11 Brigadier Griffin noted that the MJCC continued it work on issues concerning the difficulties with drug offences under DFDA and the need to modernise the investigative provisions of the DFDA.11

5 Defence Force Discipline Act 1982, section 188GA(1). 6 Director of Military Prosecutions, Annual Report 2013, p. 1. 7 Director of Military Prosecutions, Annual Report 2013, p. 2. 8 Director of Military Prosecutions, Annual Report 2013, p. 4. 9 Director of Military Prosecutions, Annual Report 2013, p. 5. 10 Director of Military Prosecutions, Annual Report 2013, p. 5. 11 Director of Military Prosecutions, Annual Report 2013, p. 5.

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1.12 During the reporting period, the Office of the DMP continued to support the Defence Police Training Centre in its training of service police in investigations and the management of investigations. Brigadier Griffin recognised the importance of the relationship between Australian Defence Force Investigative Service (ADFIS), service police and the Office of the DMP.12

1.13 Brigadier Griffin reported that since his appointment he has consulted widely with commanders across the three services. He considered that these consultations have helped him identify issues that concern command an provided direction for review and reform of the business processes of the Office of the DMP.13

Contact with military prosecuting authorities of other armed forces and other organisations

1.14 A prosecutor from the Office of the DMP attended a seminar conducted by the NATO School Oberammergau in co-operation with International Institute of the Higher Studies in Criminal Sciences held in Siracusa, Italy between 24 and 30 November 2013. The aim of the seminar was to provide and understanding of Shari'a law and possible implications in Islamic States.14

Caseload

1.15 Brigadier Griffin noted that from 1 January 2013 to 31 December 2013, 39 Defence Force Magistrate (DFM), 10 Restricted Courts Martial (RCM) and four General Court Martial (GCM) hearings were held. She also provided the following caseload data for the reporting period:

• 30 matters were not proceeded;

• 33 matters were referred back for summary disposal;

• six matters were referred to civilian Directors of Public Prosecution; and

• as at 31 December 2013, Office of the DMP had 61 open matters. 15

Process

1.16 Brigadier Griffin reported that he has commenced a review of management of files in the office of the DMP to examine the possibility of a more efficient rate of disposal of matters.16

12 Director of Military Prosecutions, Annual Report 2013, pp. 5-6. 13 Director of Military Prosecutions, Annual Report 2013, p. 6.

14 Director of Military Prosecutions, Annual Report 2013, pp. 6-7. 15 Director of Military Prosecutions, Annual Report 2013, p. 7. 16 Director of Military Prosecutions, Annual Report 2013, p. 8.

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Significant cases

1.17 The annual report cited seven significant cases heard during the reporting period, including two cases which have been mentioned in previous reports:

• Li v Chief of Army [2013] HCA 49 (27 November 2013): on 8 April 2011,

Major Li was convicted by RCM of creating a disturbance on service land. An appeal to the DFDAT was heard on 16 December 2011 which was dismissed on 15 March 2012. Major Li lodged an appeal against the DFDAT decision with the Federal Court of Australia. The Federal Court upheld the decision of the DFDAT. The High Court heard an appeal on 13 October 2013. The conviction was quashed and there is no intention to retry Major Li.17

• King v Chief of Army [2013] DFDAT 3: on 12 December 2012, Captain King,

RAN was convicted by a GCM of three counts of obtaining a financial advantage by deception, and four counts of obtaining financial advantage during the period February to August 2011. Captain King filed a notice of appeal against his convictions in the DFDAT. On 28 May 2013 the DFDAT quashed each of the seven convictions recorded against Captain King.18

Afghanistan—Detainee Management—Allegations of Procedural Misconduct

1.18 Brigadier Griffin noted that the Australian Defence Force Investigative Service (ADFIS) commenced an investigation in January 2011 into allegations that previous members of the Detainee Management Team within the ADF Initial Screening Area in Afghanistan 'did not comply with procedures relating to the management and administrative processing of detainees and in particular the requirement to maintain accurate records of that management and processing'. Following the ADFIS investigation, four members of the previous Detainee Management Team were charged with services offences alleging falsification of service documents about detainees. Three of the trials concerning these matters had been held during the previous reporting period; the fourth and final trial was held between 19 March and 3 April 2013.19

Investigative provisions of the DFDA

1.19 Brigadier Griffin noted that the previous DMP, Brigadier McDade had highlighted on a number of occasions the need to reform the investigative provisions of the DFDA. Brigadier Griffin was pleased to note that work to reform these provisions has commenced.20

17 Director of Military Prosecutions, Annual Report 2013, pp. 8-9.

18 Director of Military Prosecutions, Annual Report 2013, pp. 10-11.

19 Director of Military Prosecutions, Annual Report 2013, pp. 13-14.

20 Director of Military Prosecutions, Annual Report 2013, p. 14.

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Assistance to victims of service offences

1.20 Brigadier Griffin noted that the positive management of victims of service offence continued during the 2013. Since his appointment, Brigadier Griffin also engaged with the Head of the Sexual Misconduct Prevention and Reporting Office.21

Table of Offences

1.21 The report included the following table of offences:22

Class of Offence NAVY ARMY RAAF TOTAL

02-Acts intended to cause injury 10 14 2 26

03-Sexual assault and related offences 5 6 1 12

04-Dangerous or negligent acts endangering persons 1 1 0 2

05-Abduction, harassment and other offences against the person 1 1 0 2

08-Theft and related offences 0 7 1 8

09-Fraud, deception and related offences 10 17 15 42

10-Illicit drug offences 1 1 0 2

13-Public order offences 0 1 0 1

15-Offences against justice procedures, government security and government operations

0 1 0 1

17-Specific military discipline

offences

15 18 2 35

TOTAL 43 67 21 131

21 Director of Military Prosecutions, Annual Report 2012, pp. 14-15.

22 Director of Military Prosecutions, Annual Report 2013, Annex B.

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Conclusion

1.22 In conclusion, Brigadier Griffin stated that:

In the short time since my appointment I have endeavoured to liaise with command across the three services both at the senior leadership level and across major ADF establishments and formations. A consistent theme is the concern held by commanders about the delay in the disposal of disciplinary matters coming before superior service tribunals.

Reforms to the ADF disciplinary framework in the last decade, in particular the establishment of an independent investigative agency (ADFIS), independent Judge Advocates, Registrar of Military Justice and my own position, have resulted in manifest improvement in the military discipline system. I believe the next challenge is making these independent organisations operate with a higher degree of efficiency to deliver more timely outcomes for everyone involved in the disciplinary process. It is my intention to identify where these efficiencies lie both within ODMP and in the way we operate with other military justice agencies and to minimise delay and strengthen confidence in the system.23

23 Director of Military Prosecutions, Annual Report 2013, pp. 15-16.

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Judge Advocate General

1.23 The Judge Advocate General's (JAG) annual report for the period 1 January 2013 to 31 December 2013 was tabled in the House of Representatives on 27 May 2014 and in the Senate on 17 June 2014. Section 196B of the DFDA requires the JAG, as soon as practicable after 31 December each year, to provide the Minister with a report relating to the operation of the DFDA.24

1.24 The office of the Judge Advocate General (JAG) of the ADF was created by s 179 of the Defence Force Discipline Act 1982 (DFDA). The current JAG, Major General the Hon Justice RRS Tracey, RFD, was reappointed as JAG on 10 February 2010 for a term of four years. The current JAG also holds the appointment of President of the Defence Force Discipline Appeals Tribunal (DFDAT).25

1.25 The functions of the JAG are prescribed by the DFDA. The JAG is responsible for the following functions:

(a) reporting annually to Parliament on the operation of the DFDA, the Regulations, the Rules of Procedure, and the operation of any other law of the Commonwealth or the ACT insofar as that law relates to the discipline of the Defence Force;

(b) making Procedural Rules for Service tribunals, being Court Martial and Defence Force Magistrate Rules, and Summary Authority Rules;

(c) nominating the judge advocate for a court martial and Defence Force magistrates;

(d) nominating to a Service Chief officers to be members of the judge advocate's panel;

(e) appointing Defence Force magistrates from officers appointed as members of the judge advocate panel;

(f) nominating to a Service Chief legal officers for the purposes of DFDA s 154(1)(a); and

(g) if requested, providing a final and binding legal report in connection with the internal review of proceedings before Service tribunals.26

24 Judge Advocate General Annual Report, 2013, p. 1.

25 Judge Advocate General Annual Report, 2013, pp. 1-2. 26 Judge Advocate General Annual Report, 2013, pp. 2-3.

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Operation of the Superior Military Tribunals

1.26 The JAG noted that during the reporting period, trials by court martial and DFM continued in accordance with the Military Justice (Interim Measures) Act (No 1) 2009, as amended by the Military Justice (Interim Measures) Amendment Act 2011.27

Appeals to the Defence Force Discipline Appeal Tribunal

1.27 During the reporting period, there were five appeals to the Defence Force Discipline Appeal Tribunal (DFDAT) in connection with convictions recorded by courts martial and DFM. These were:

(a) Yewsang v Chief of Army [2013] ADFDAT 1;

(b) Ferdinand v Chief of Army [2013] ADFDAT 2;

(c) King v Chief of Navy [2013] ADFDAT 3;

(d) Leith v Chief of Army [2013] ADFDAT 4; and

(e) McLaren v Chief of Navy [2013] ADFDAT 5.

1.28 The appeals in King and McLaren were upheld, the appeal in Yewsang was partly upheld and the appeals in Ferdinand and Leith were dismissed.28

Legislation

1.29 In the previous annual report, the JAG noted that the Military Court of Australia Bill 2012 and the associated Military Court of Australia (Transitional Provisions and Consequential Amendments) Bill 2012 were introduced into the House of Representatives on 21 June 2012.

1.30 The JAG noted that the bills lapsed when the 43rd Parliament was prorogued, resulting in the continuation of the system of trial by court martial and DFM, which was introduced as an interim measure in 2009. While the interim measures are working satisfactorily, the JAG believed that a final decision should be taken as to whether the interim measures will continue indefinitely, or whether a Chapter III court is to be created.29

Other Military Discipline Reform

1.31 The JAG noted that during the reporting Defence Legal was working on revising and updating the Discipline Law Manual which provides guidance to those involved in summary authority proceedings.

27 Judge Advocate General Annual Report, 2013, pp. 5-6. 28 Judge Advocate General Annual Report, 2013, p. 6. 29 Judge Advocate General Annual Report, 2013, pp. 7-8.

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1.32 The JAG noted that the decision to publish trial outcomes for courts martial and DFMs in Service newspapers had commenced. The JAG noted that concerns he raised in the previous report, that in some cases acquittals were not being included in the reporting, had not been completely addressed.30

A greater role for the Judge Advocate if the system of trial by court martial is retained

1.33 The JAG argued for an enhanced role of the Judge Advocate if the system of trial by court martial is to be retained. The JAG, Chief Judge Advocate and the Deputy Judge Advocates General agree that reform is necessary if the traditional arrangements are to continue.31

Operation of sub-rule6(4) of the Court Martial and Defence Force Magistrate Rules

1.34 In the previous annual report, the JAG expressed the view that provisions for making the necessary travel arrangement for witnesses summoned to attend before a court martial or DFM should be modernised. He was pleased to report that amendments have been made to the Court Martial and Defence Force Magistrate Rules.32

Conclusion

1.35 In conclusion, the JAG stated that:

The interim arrangements reinstating the system of trial by court martial and DFM continue to operate satisfactorily. It is, however, desirable that a final decision be taken as to whether the interim measures are to be made permanent or whether, for instance, a Chapter III military court is to be created.33

1.36 The JAG noted that it is difficult to address necessary reforms as long as the measures in place remain 'interim'.34

Senator Chris Back Chair

30 Judge Advocate General Annual Report, 2013, pp. 9-10.

31 Judge Advocate General Annual Report, 2013, pp. 11-15.

32 Judge Advocate General Annual Report, 2013, p. 16.

33 Judge Advocate General Annual Report, 2013, p. 20.

34 Judge Advocate General Annual Report, 2013, p. 20.

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Appendix 1

Compliance tabled for the annual reports tabled during the period 1 November 2013 to 30 April 2014 and referred to the committee

Department/agency Enabling legislation and timeliness Date on letter of

transmittal

@ Date report submitted to minister (if known)

% Date report received by minister (if known)

* Date report presented to President

# Date tabled in the Senate

^ Date tabled in H/Representatives

Director of Military Prosecutions Defence Force Discipline Act 1982,

section 196B. As soon as practicable after 31 December each year.

7 Mar 2014 @ 11 Mar 2014

% 11 Mar 2014

# 14 May 2014

^ 14 May 2014

Judge Advocate General Defence Force Discipline Act 1982,

section 196A(1). As soon as practicable after 31 December each year. JAG reports for the period 1 January to 31 December each year.

8 Apr 2014 @ 22 Apr 2014

% 22 Apr 2014

# 17 June 2014

^ 27 May 2014

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158

The Senate

Legal and Constitutional Affairs

Legislation Committee

Annual reports (No. 2 of 2014)

August 2014

159

© Commonwealth of Australia

978-1-76010-061-2

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Australia License.

The details of this licence are available on the Creative Commons website: http://creativecommons.org/licenses/by-nc-nd/3.0/au/.

This document was printed by the Senate Printing Unit, Department of the Senate, Parliament House, Canberra.

160

MEMBERS OF THE COMMITTEE

44th Parliament

Members Senator the Hon. Ian Macdonald (LP, QLD) (Chair) Senator the Hon. Jacinta Collins (ALP, VIC) (Deputy Chair) Senator Catryna Bilyk (ALP, TAS) Senator Barry O'Sullivan (NATS, QLD) Senator Linda Reynolds (LP, WA) Senator Penny Wright (AG, SA)

Secretariat Ms Sophie Dunstone Committee Secretary Mr Tim Hillman Research Officer

Ms Jo-Anne Holmes Administrative Officer

Suite S1.61 Telephone: (02) 6277 3560

Parliament House Fax: (02) 6277 5794

CANBERRA ACT 2600 Email: legcon.sen@aph.gov.au

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162

TABLE OF CONTENTS

MEMBERS OF THE COMMITTEE .............................................................. iv

PREFACE Terms of reference ................................................................................................ vii

Role of annual reports .........................................................................................viii

Annual reporting requirements ............................................................................viii

'Apparently satisfactory' ........................................................................................ ix

Timeliness .............................................................................................................. ix

CHAPTER 1

ANNUAL REPORTS OF STATUTORY AUTHORITIES ................................. 1

Audio-Visual Copyright Society Limited .............................................................. 1

High Court of Australia .......................................................................................... 3

Migration Review Tribunal (MRT) and Refugee Review Tribunal (RRT) ........... 5

CHAPTER 2

REPORTS ON THE OPERATION OF ACTS AND PROGRAMS ................... 7

Report on the operation of the Surveillance Devices Act 2004 .............................. 7

Telecommunications (Interception and Access) Act 1979 ..................................... 9

APPENDIX 1

Reports tabled during the period 1 November 2013 and 30 April 2014 and referred to the committee ...................................................................................... 13

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164

PREFACE

Terms of reference On 29 September 2010, a resolution of the Senate allocated the following portfolios to the Senate Legal and Constitutional Affairs Legislation Committee (the committee):

• Attorney-General's portfolio; and

• Immigration and Citizenship portfolio. 1

This report was prepared pursuant to Standing Order 25(20) relating to the consideration of annual reports by committees. The Standing Order states:

Annual reports of departments and agencies shall stand referred to the committees in accordance with an allocation of departments and agencies in a resolution of the Senate. Each committee shall:

(a) Examine each annual report referred to it and report to the Senate whether the report is apparently satisfactory;

(b) Consider in more detail, and report to the Senate on, each annual report which is not apparently satisfactory, and on the other annual reports which it selects for more detailed consideration;

(c) Investigate and report to the Senate on any lateness in the

presentation of annual reports;

(d) In considering an annual report, take into account any relevant remarks about the report made in debate in the Senate;

(e) If the committee so determines, consider annual reports of departments and budget-related agencies in conjunction with examination of estimates;

(f) Report on annual reports tabled by 31 October each year by the tenth sitting day of the following year, and on annual reports tabled by 30 April each year by the tenth sitting day after 30 June of that year;

(g) Draw to the attention of the Senate any significant matters relating to the operations and performance of the bodies furnishing the annual reports; and

(h) Report to the Senate each year whether there are any bodies which do not present annual reports to the Senate and which should present such reports.

1 Following a resolution of the Senate on 13 November 2013, the Immigration and Citizenship portfolio was renamed the Immigration and Border Protection portfolio.

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Role of annual reports Annual reports place a great deal of information about government departments and agencies on the public record. Accordingly, the tabling of annual reports is an important element of accountability to Parliament, as the information provided in annual reports assists in the effective examination of the performance of departments and agencies, and the administration of government programs.

Annual reporting requirements Standing Order 25(20)(f) requires that committees report on annual reports tabled by 31 October each year by the tenth sitting day of the following year, and on annual reports tabled by 30 April each year by the tenth sitting day after 30 June of that year.

Pursuant to subsections 63(2) and 70(2) of the Public Service Act 1999, departments of state and executive agencies must prepare annual reports in accordance with the Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies (Requirements for Annual Reports). As a matter of policy, the Requirements for Annual Reports also apply to prescribed agencies under section 5 of the Financial Management and Accountability Act 1997 (FMA Act).2

The 2012-13 annual reports are prepared in accordance with the Requirements for Annual Reports issued on 29 May 2014. Amendments to the latest issue of the Requirements for Annual Reports are:

• Consultancy reporting - recognising the functionality provided by the AusTender database, the requirement to provide details of consultancy contracts let in the reporting year…has been omitted.

• Carer recognition - a new requirement has been added for public service care agencies to report on compliance with the Carer Recognition Act 2010

• Freedom of information - simplification of reporting following accommodation of major reforms to freedom of information reporting in the 2010-11 Requirements.3

Orders made by the minister under section 48 of the Commonwealth Authorities and Companies Act 1997 (CAC Act) set out guidelines for the annual reports of Commonwealth authorities. The content of annual reports of Commonwealth companies is based on the reporting requirements under the Corporations Act 2001, in accordance with section 36 of the CAC Act.

Statutory authorities must also report in accordance with their establishing legislation.

2 Department of the Prime Minister and Cabinet (DPMC), Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies (Requirements for Annual Reports) 28 June 2012, Part 1, subsection 3(1).

3 DPMC, Requirements for Annual Reports, 29 May 2014, p. i.

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Guidelines for the annual reports of non-statutory bodies are set out in the government response to recommendations of the then Senate Standing Committee on Finance and Government Operations, in its report entitled Reporting Requirements for the Annual

Reports of Non-Statutory Bodies. The government response was incorporated into the Senate Hansard of 8 December 1987.4

'Apparently satisfactory' Under the terms of Standing Order 25(20)(a), the committee is required to report to the Senate whether reports are 'apparently satisfactory'. In making this assessment, the committee considers such aspects as compliance with relevant reporting guidelines.

The reports examined by the committee in this report were found to be of a satisfactory standard, adequately describing the functions, activities, performance and financial positions of the departments and agencies. The committee finds all submitted annual reports to be 'apparently satisfactory'.

Timeliness Under Standing Order 25(20)(c), the committee must also report to the Senate on any lateness in the presentation of annual reports.

In accordance with the Requirements for Annual Reports, agencies are required to present:

A copy of the annual report...to each House of the Parliament on or before 31 October in the year in which the report is given. If Senate

Supplementary Budget Estimates hearings are scheduled to occur prior to 31 October, it is best practice for annual reports to be tabled prior to those hearings.

Where an agency's own legislation provides a timeframe for its annual report, for example "within six months" or "as soon as practicable after 30 June in each year", that timeframe applies.5

If a department or agency is unable to meet this deadline, the secretary or agency head is to advise the responsible minister of the reasons for the delay and the expected tabling date. The responsible minister is to table this explanation in the Parliament.6

Subsection 9(1) of the CAC Act requires the director of a Commonwealth authority to: (a) prepare an annual report in accordance with Schedule 1 for each financial year; and

4 Official Senate Hansard, 8 December 1987, pp 2643-2645.

5 DPMC, Requirements for Annual Reports, 29 May 2014, Part 1, section 4.

6 DPMC, Guidelines for the Presentation of Documents to the Parliament (including government documents, government responses to committee reports, ministerial statements, annual reports and other instruments), October 2013, p. 5.

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(b) give it to the responsible Minister by the deadline for the financial year for presentation to the Parliament.

(2) The deadline is:

(a) the 15th day of the 4th month after the end of the financial year; or

(b) the end of such further period granted under subsection 34C(5) of the Acts Interpretation Act 1901.

Under section 36 of the CAC Act:

(1) A Commonwealth company must give the responsible Minister:

(a) a copy of the company's financial report, directors' report and auditor's report that the company is required by the Corporations Act 2001 to have for the financial year (or would be required by that Act to have if the company were a public company); and (b) any additional report under subsection (2); and (c) in the case of a wholly-owned Commonwealth company— any additional information or report required by the Finance Minister's Orders.

(1A) The Commonwealth company must give the reports and information by:

(a) if the company is required by the Corporations Act 2001 to hold an annual general meeting—the earlier of the following:

(i) 21 days before the next annual general meeting after the end of the financial year; (ii) 4 months after the end of the financial year; and

(b) in any other case—4 months after the end of the financial year; or the end of such further period granted under subsection 34C(5) of the Acts Interpretation Act 1901.

In the absence of any specific provision, the Acts Interpretation Act 1901 requires bodies to present annual reports to ministers within six months after the end of the period reported upon (subsection 34C(2)), and ministers must table reports within 15 sitting days after receipt.

A table listing the annual reports of departments and agencies tabled in the Senate (or presented out of session to the President of the Senate) between 1 November 2013 and 30 April 2014, and which have been referred to the committee for examination, can be found at Appendix 1.7 Also included in this table is the date each report was tabled in the House of Representatives.

The annual reports of FMA Act bodies examined in this report missed the 31 October 2013 tabling deadline for the Senate.

7 This table also includes the reports on the operation of acts or programs which have been referred to the committee.

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Although the report of the High Court of Australia was tabled after 31 October 2013, the High Court of Australia (which is a body not bound by the FMA Act), presented its annual report in accordance with its respective legislative provisions.8

In accordance with best practice, as outlined in the Requirements for Annual Reports, the committee encourages bodies to table annual reports before the supplementary budget estimates hearings in October each year.9

Requirement to report agencies for non-reporting

In accordance with Standing Order 25(20)(h), the committee must report bodies which are required to present an annual report to the Senate but which have failed to do so.

On this occasion, the committee is unaware of any body required to table an annual report which has failed to do so.

8 Subsections 47(1) of the High Court Act 1979 and 34C(2) of the Acts Interpretation Act 1901 gives the High Court a period of six months after the end of the reporting period to submit to the minister an annual report.

9 DPMC, Requirements for Annual Reports, 29 May 2014, Part 1, section 4.

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170

CHAPTER 1

ANNUAL REPORTS OF STATUTORY AUTHORITIES 1.1 The annual reports for the financial year 2012-13 of the following statutory authorities in the Attorney-General's portfolio were referred to the committee for examination and report:

• Audio-Visual Copyright Society Limited (Screenrights); and

• High Court of Australia.

1.2 The following report from a statutory authority in the Immigration portfolio was also referred to the committee for examination and report:

• Migration Review Tribunal and Refugee Review Tribunal.

1.3 The committee has decided to closely examine all three of these annual reports.

Audio-Visual Copyright Society Limited 1.4 The Audio-Visual Copyright Society Limited, which trades as Screenrights, is an Australian domiciled company. The company is a non-profit entity and its principal activities include: exercising its right as a collecting society under Part VA, Part VC and Part VB (in relation to audio-visual items) of the Copyright Act 1968 (Copyright Act); and collecting money from educational institutions for distribution to relevant copyright owners.1 Screenrights' annual report was tabled in the House of Representatives on 21 November 2013 and in the Senate on 3 December 2013.

1.5 The company is limited by guarantee and, pursuant to section 34(2) of the Commonwealth Authorities and Companies Act 1997 (CAC Act), is a wholly-owned Commonwealth company. The guarantee 'in the event of the winding up of the company is $10 for each member'.2 As at 30 June 2012, the company's total liability was $35 600 from 3560 full members.3 This is an increase compared with its liability of $34 640 from 3464 members in 2012-13.4

1.6 The annual report of Screenrights needs to comply with ministerial orders made under section 48 of the CAC Act, which are set out in the Commonwealth Companies (Annual Reporting) Orders 2011. The content of annual reports of Commonwealth companies is based on the reporting requirements under the Corporations Act 2001, in accordance with section 36 of the CAC Act. The reporting

1 Screenrights Annual Report 2012-13, p. 30.

2 Screenrights Annual Report 2012-13, p. 21.

3 Screenrights Annual Report 2012-13, p. 21.

4 Screenrights Annual Report 2012-13, p. 21.

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provisions for Screenrights are contained in sections 135R, 135ZZD, 135ZZV and 183D of the Copyright Act.5

1.7 Certain issues identified by this committee in previous reports6 persist in the Screenrights Annual Report 2012-13. These include the need for a letter of transmittal, a contents page, a compliance index and a glossary index. The inclusion of such information would increase the accessibility of information, as well as assist the committee in its examination of the report. Similarly overlooked in previous annual reports is the reporting requirements with which the annual report complies. The inclusion of accompanying headings relating to information presented in colourful graphs would also enhance the readability of the annual report. Nonetheless, the committee is pleased to see that the report contains information on the organisational structure of Screenrights, as well as information on the enabling legislation under which Screenrights operates.7

1.8 The above issues notwithstanding, the report contains useful background information about the role and functions of Screenrights, its objectives, board members and company membership. The layout and format of its financial statements and 'Notes to the Consolidated Financial Statements' continue to be clearly set out and easy to follow.8

1.9 During 2012-13, Screenrights reported a record $46.5 million in license revenue and other income for the film and television industries.9 In its last annual report Screenrights stated that it intended to keep expenditure in relation to total collections below 16 per cent.10 This was achieved in 2012-13 with expenses at 14.8 per cent of collections.11 The company distributed more than $34.9 million to rights holders in film and television.12

1.10 Highlights for Screenrights during 2012-13 included the launch of the EnhanceTV Direct streaming service for educators, a partnership with RMIT to introduce Enhance TV to universities, and a contribution to the Australian Law Reform Commission Review into the Copyright Act.13 The EnhanceTV Direct streaming service provides access to a wide range of content for both educators and

5 Copyright Act 1968, ss. 135(R); 135(ZZD); 135(ZZV) and 183(D).

6 Senate Legal and Constitutional Affairs Legislation Committee, Annual reports (No. 2 of 2012), September 2012, p. 2; Senate Legal and Constitutional Affairs Legislation Committee, Annual reports (No. 2 of 2013), December 2013, p. 2.

7 Screenrights Annual Report 2012-13, p. 17; p. 30.

8 Screenrights Annual Report 2012-13, pp 30-51.

9 Screenrights Annual Report 2012-13, pp 1; 8; 9; and 12.

10 Screenrights Annual Report 2011-12, pp 1, 10 and 21.

11 Screenrights Annual Report 2012-13, p. 1.

12 Screenrights Annual Report 2012-13, p. 1.

13 Screenrights Annual Report 2012-13, p. 1.

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students and benefits members by increasing the longevity of their content and the returns for them.14

1.11 The financial information presented in the annual report relates to Screenrights and not the consolidated entity that includes the wholly-owned subsidiary EnhanceTV Direct Pty Ltd.15 The consolidated entity reported a net operating loss after income tax of $927 712, an increase from $360 632 in the preceding year.16 During the 2012-13 period, the directors reported no significant changes in the state of affairs of the company or consolidated entity.17

1.12 The committee considers the annual report of Screenrights to be 'apparently satisfactory', but again expresses some concern about the accessibility of certain information and the omission of some required information.

High Court of Australia 1.13 The High Court of Australia's (the High Court) annual report for 2012-13 is presented in accordance with section 47 of the High Court of Australia Act 1979. The High Court is not a prescribed agency under the Financial Management and Accountability Act 1997, due to its status under its enabling legislation.18 Therefore, the Requirements for Annual Reports do not apply to the High Court's annual report.

1.14 Nonetheless, section 3(4) of the Requirements for Annual Reports provides:

In the case of an agency (including an executive agency established under section 65 of the Public Service Act 1999) that is neither prescribed under the FMA Act nor comes within the CAC Act, these Requirements may be used to the extent that they are consistent with any reporting requirements contained in the agency's own legislation (if any).19

1.15 The annual report of the High Court of Australia was tabled in both the House of Representatives and the Senate on 13 November 2013, and complies with the High Court's own reporting requirements.

1.16 For the reporting period 2012-13, the High Court reported a smaller deficit of $4.378 million than the previous financial year's deficit of $7.099 million.20 In 2012-13, the court received $16.451 million in income, including revenue from appropriations. The High Court reported $20.829 million in operating expenses and an

14 Screenrights Annual Report 2012-13, p. 4.

15 Screenrights Annual Report 2012-13, p. 7.

16 Screenrights Annual Report 2012-13, p. 21.

17 Screenrights Annual Report 2012-13, p. 21.

18 Department of Finance and Deregulation, Chart of 108 Agencies under the Financial Management and Accountability Act 1997 (FMA Act), 1 November 2013.

19 Department of Prime Minister and Cabinet (DPMC), Requirements for Annual Reports, 29 May 2014, Part 1, subsection 3(4)

20 High Court of Australia Annual Report 2012-13, p. 11.

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equity injection of $3.870 million.21 A major reason for the deficit can be attributed to the inclusion in the court's operating expenses of depreciation of non-financial assets (to the value of $4.486 million), for which the court does not receive appropriation funding.22 The High Court's annual appropriation was also reduced due to changes in the management and funding of Commonwealth Law Courts buildings from 1 July 2012.23 However, the court reported an underlying surplus of $0.108 million following exclusions of non-cash and unfunded items, and the above depreciation and revaluation figures.24

1.17 During 2012-13, 35 000 people visited the High Court and the court hosted guided tours for and gave presentations to 35 000 students.25 The High Court's website serves as the primary source of public information related to the core business of the High Court including its history, structure and administration.26 The website also provides access to legal documents, transcripts and speeches.27

1.18 The court reported a slight decrease in the number of cases filed for the 2012-13 reporting period with 618 cases filed compared to 728 cases in 2011-12.28 Inversely, the proportion of special leave applications filed by self-represented litigants increased to 44 per cent in 2012-13 from 41 per cent in 2011-12.29 The majority of cases were filed in the Sydney registry office with 50 per cent of cases filed, followed by the offices in Melbourne consisting of 26 per cent of cases and Canberra comprising 24 per cent. The Melbourne and Canberra offices processed cases filed in other interstate cities as well as those filed in these respective cities.30

1.19 The committee again notes that an issue commented on previously31 has resurfaced in the High Court's 2012-13 report. In the court's last annual report, the committee made the observation that the court's outcome—to interpret and uphold the Australian Constitution and perform the functions of the ultimate appellate court in Australia—was not actually made clear from the outset but was identified near the end

21 High Court of Australia Annual Report 2012-13, p. 40.

22 High Court of Australia Annual Report 2012-13, p. 17.

23 High Court of Australia Annual Report 2012-13, p. 40.

24 High Court of Australia Annual Report 2012-13, p. 17.

25 High Court of Australia Annual Report 2012-13, p. 46.

26 High Court of Australia Annual Report 2012-13, p. 97.

27 High Court of Australia Annual Report 2012-13, pp 97-98.

28 High Court of Australia Annual Report 2012-13, p. 30.

29 High Court of Australia Annual Report 2012-13, p. 17.

30 High Court of Australia Annual Report 2012-13, p. 30.

31 Legal and Constitutional Affairs Legislation Committee, Report on Annual Reports No. 2 2013, December 2013, p. 4.

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of the report in the 'Notes to and forming part of the Financial Statements'.32 This was also the case in the 2010-11 annual report.

1.20 As mentioned in the committee's last report, although the Requirements for Annual Reports do not apply to the High Court, the committee wishes to emphasise the importance of performance reporting in annual reports. This provides the relevant agency with an accountability framework as well as a monitoring mechanism of activities and practices. As stated in the Requirements for Annual Reports:

The "clear read" between PB Statements and annual reports is an essential part of the accountability system that compares budgeted targets and figures to those actually achieved, and places a strong emphasis on compatibility between the two documents regarding budget and performance information.33

1.21 Aside from the concern raised above, the court's annual report provides a clear and concise overview of the court's activities over the reporting period. The layout, in terms of the annual report's headings, chapters, statistical information relating to the court's workload, funding arrangements, visitor programs and building maintenance, are clearly set out and easy to follow. Statistical information in the annual report is also presented in both graphical and tabulated formats where appropriate to enhance the accessibility of the information.

1.22 The committee considers the annual report of the High Court to be 'apparently satisfactory'.

Migration Review Tribunal (MRT) and Refugee Review Tribunal (RRT) 1.23 The report of the MRT-RRT was tabled in the Senate on 12 November 2013 and in the House of Representatives on 13 November 2013. The committee notes the late presentation of the report but also remarks that the report was provided in time for supplementary estimates.

1.24 The MRT-RRT is a statutory authority that reports under the Financial Management and Accountability Act 1997 and provides independent merits review of visa related decisions made by the minister or by public officers acting as delegates of the minister as set out in the Migration Act 1958.34

1.25 There was an increase in lodgements and in the number of cases decided by the combined tribunals in 2012-13. Case decisions increased from 10 815 in 2011-12 to 19 347 in 2012-13. An additional four per cent of cases lodged were decided by the tribunals in 2012-13 than in 2011-12.35 The committee was pleased to note that the

32 High Court of Australia Annual Report 2012-13, p. 61.

33 DPMC, Requirements for Annual Reports, 28 June 2013, p. 3.

34 Migration Review Tribunal and Refugee Review Tribunal Annual Report 2012-13, p. 6.

35 Migration Review Tribunal and Refugee Review Tribunal Annual Report 2012-13, p. vii.

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total percentage of tribunal decisions taken to judicial review equalled seven per cent.36

1.26 The principal member's report on the tribunals' operations for 2012-13 provides a useful overview of a demanding year. In addition to the increase in usual workload, it was also reported that there was a significant rise in workload due to changes made to processing arrangements for unauthorised maritime arrivals. In March 2012, the minister permitted unauthorised maritime arrivals to apply for protection visas, providing the applicants the right to tribunal review if a delegate of the minister consequently refused to grant a protection visa. During the reporting period, 1 518 applications for review were received from unauthorised maritime arrivals.37

1.27 In order to manage the increased workload while also maintaining the quality of the reviews, the tribunals created specialist teams and reorganised staff structure, committing senior members to specific caseloads to ensure that specific strategies were developed for particular caseloads.38

1.28 The performance section is clearly laid out with results presented against targets set for key performance indicators and deliverables.39 The report states that the tribunals did not meet the target of publishing 40 per cent of decisions, however it also highlights that there was an increase in published decisions from 4 546 in 2011-12 to 4 783 in 2012-13.40

1.29 The tribunals' financial performance for 2012-13 is also discussed in this section of the report. A net surplus of $24.53 million was recorded for the financial year.41

1.30 The report also includes a detailed breakdown of caseload statistics which provides useful background.42

1.31 The report is well presented and easy to navigate with an effective design. It follows the Requirements for Annual Reports and depicts a fair account of the reporting period. The committee considers the report to be 'apparently satisfactory'.

1.32 The committee congratulates the Refugee Review Tribunal for its twentieth year of operation.

36 Migration Review Tribunal and Refugee Review Tribunal Annual Report 2012-13, p. vii.

37 Migration Review Tribunal and Refugee Review Tribunal Annual Report 2012-13, p. 3.

38 Migration Review Tribunal and Refugee Review Tribunal Annual Report 2012-13, p. 3.

39 Migration Review Tribunal and Refugee Review Tribunal Annual Report 2012-13, p. 15.

40 Migration Review Tribunal and Refugee Review Tribunal Annual Report 2012-13, p. 15.

41 Migration Review Tribunal and Refugee Review Tribunal Annual Report 2012-13, pp 15-16.

42 Migration Review Tribunal and Refugee Review Tribunal Annual Report 2012-13, pp 108-114.

176

CHAPTER 2

REPORTS ON THE OPERATION OF ACTS AND PROGRAMS 2.1 Standing Order 25(20) does not provide for the consideration of reports on the implementation or operation of acts or programs. The committee is not, therefore, required to include them in its report on the examination of annual reports. However, as on previous occasions, the committee has chosen to examine such reports, specifically the:

• Surveillance Devices Act 2004 report for the year ending 30 June 2012; and

• Telecommunications (Interception and Access) Act 1979.

Report on the operation of the Surveillance Devices Act 2004 2.2 The report on the operation of the Surveillance Devices Act 2004 (SD Act) was tabled in the House of Representatives on 12 December 2013 and in the Senate on 11 February 2014. The report was presented to the minister on 22 October 2013, outside the SD Act's legislative provisions. Under section 50(3) of the SD Act:

The report must be submitted to the Minister as soon as practicable after the end of each financial year, and in any event within 3 months after the end of the financial year.1

2.3 The report relates to the period from 1 July 2012 to 30 June 2013. During this reporting period, an important legislative development took place in relation to the SD Act. Following reforms to the Law Enforcement Integrity Act 2012, integrity tests were introduced for staff members of the Australian Federal Police (AFP), Australian Crime Commission (ACC) and the Australian Customs and Border Protection Service (ACBPS) suspected of corrupt conduct. The tests are intended to test whether an

official will respond to a simulated event in a manner that is illegal or would breach an agency's standard of integrity.2 This amendment was originally recommended by the Parliamentary Joint Committee on the Australian Commission for Law Enforcement Integrity.3

2.4 There were no significant judicial decisions under the SD Act during the reporting period.4

1 Surveillance Devices Act 2004, ss. 50(3).

2 Attorney-General's Department (AGD), Surveillance Devices Act 2004 Report for the year ending 30 June 2013, p. 11.

3 Parliamentary Joint Committee on the Australian Commission for Law Enforcement Integrity, Inquiry into Integrity Testing, November 2011, p.19.

4 AGD, Surveillance Devices Act 2004 Report for the year ending 30 June 2013, p. 11.

177

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Applications for surveillance device warrants

2.5 Information in relation to the number of warrants obtained at the state and territory level was not available as state and territory law enforcement agencies generally rely on their own legislative regimes for the use of surveillance devices, although they are able to make use of the SD Act when dealing with a Commonwealth matter or during a joint operation.5

2.6 Pursuant to paragraph 50(1)(a) of the SD Act, the annual report must provide information on the number of applications for warrants made and the number of warrants issued for the reporting period. Under subsection 50(2), the SD Act also requires the report to provide a breakdown of these numbers in respect of each different kind of surveillance device.6

2.7 For 2012-13 there was an approximate increase in the number of warrants issued with 737 warrants issued compared to the preceding period with 642 warrants issued.7

2.8 Section 15 of the SD Act provides for remote application for a warrant. A remote warrant could be made by telephone, fax, email or other means of communication if it is impracticable for the law enforcement agency to apply in person. There were no remote applications during the reporting period.8

2.9 Section 50 requires the inclusion of information which is, for the committee's purpose, indicative of the SD Act's effective use, such as: the number of arrests; prosecutions and convictions; as well as 'the number of locations and safe recoveries of children', based on information obtained using surveillance devices.9

2.10 The following table shows the number of arrests, prosecutions and convictions for 2012-13. The figures in brackets refer to the preceding reporting period 2011-12. During the reporting period there was a decrease in arrests and prosecutions, however, there was an increase in convictions.10

5 AGD, Surveillance Devices Act 2004 Report for the year ending 30 June 2013, p. 11.

6 AGD, Surveillance Devices Act 2004 Report for the year ending 30 June 2013, p. 12.

7 AGD, Surveillance Devices Act 2004 Report for the year ending 30 June 2013, p. 14.

8 AGD, Surveillance Devices Act 2004 Report for the year ending 30 June 2013, p. 16.

9 AGD, Surveillance Devices Act 2004 Report for the year ending 30 June 2013, p. 18.

10 Adapted from: AGD, Surveillance Devices Act 2004 Report for the year ending 30 June 2013, p. 22.

178

Page 9

Table 2.1

AGENCY Arrests Safe Recovery Prosecutions Convictions

ACC (25) 27 - (0) 5 (0) 1

AFP (112) 102 - (125) 121 (25) 50

Victoria Police (2) 2 - - -

Total (13911) 131 - (125) 126 (25) 51

2.11 The report notes that information regarding arrests, prosecutions (inclusive of committal proceedings) and convictions should be interpreted with caution, especially in presuming a relationship between them. An arrest in one reporting period might not lead to a prosecution in a later reporting period, likewise a conviction in one reporting period could be recorded in another period. Further, there is no correlation between the number of charges and arrests as an arrest could lead to conviction for multiple offences. Also, in situations where the weight of evidence obtained from surveillance devices is sufficient for defendants to enter guilty pleas, it may not be necessary for surveillance information to be introduced as evidence.12

Telecommunications (Interception and Access) Act 1979 2.12 The Annual report on the Telecommunications (Interception and Access) Act 1979 2012-13 was tabled in the House of Representatives on 12 December 2013 and in the Senate on the 11 February 2014.

2.13 The Telecommunications (Interception and Access) Act 1979 (TIA Act) has the primary goal of protecting the privacy of individuals who use the Australian telecommunications network. Communications cannot be intercepted unless authorised by specific circumstances set out in the TIA Act. Law enforcement agencies have the option to access several separate warrants to intercept a communication. These include warrants for real-time content and for stored communications.13

2.14 Section 104 of the TIA Act sets out the provisions for annual reports, specifically:

The Minister shall cause a copy of a report under section 93 or Division 2 to be laid before each House of the Parliament within 15 sitting days of that House after the Minister receives the report, or the report is prepared, as the case may be.14

11 AGD, Surveillance Devices Act 2004 Report for the year ending 30 June 2012, p. 15.

12 AGD, Surveillance Devices Act 2004 Report for the year ending 30 June 2013, p. 22.

13 AGD, Telecommunications (Interception and Access) Act annual report 2012-13, p. 5.

14 Telecommunication (Interception and Access) Act, s. 104(1).

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2.15 The committee notes that the report was tabled before the required date in both Houses of Parliament.

2.16 In 2012-13 interception warrants were only available to 17 Commonwealth and state and territory agencies including ACC, ACLEI, AFP, state and territory police and state anti-corruption agencies.15 In order to use an interception warrant an authority must be satisfied that the agency is investigating a serious offence, that the gravity of the offence warrants the intrusion and that the interception is likely to support the investigation.16

2.17 The report notes that an interception warrant may only be issued by an eligible judge or a nominated Administrative Appeals Tribunal member. Eligible judges in 2012-13 included members of the Federal Court of Australia, the Family Court of Australia and the Federal Circuit Court. Judges have to formally consent in writing and be declared eligible by the Attorney-General to be an eligible judge.17

2.18 With the introduction of the Cybercrime Legislation Amendment Act 2012 law enforcement agencies became able to work with cybercrime investigators globally. The Act also amended the Criminal Code Act 1995 (Cth) to enable the ability for agencies to access and share computer offence information with regards to international investigations.18

2.19 During the reporting period, the Parliamentary Joint Committee on Intelligence and Security (PJCIS) made recommendations regarding the TIA Act after tabling its report for the Inquiry into Potential Reforms of National Security Legislation on 24 June 2013. The committee assessed possible reforms to the interception system to ensure it is up to date with rapid changes in the

telecommunications environment.19

2.20 After accepting that emerging and upcoming technologies can impact on the ability of law enforcement agencies to intercept communications, gather intelligence and arrest and prosecute offenders, the committee made several recommendations in its report, which included:

• a comprehensive rewrite of the TIA Act to provide clear direction on the

protections and powers available under the legislations;

• the introduction of a security framework for the telecommunications sector through amendments to the Telecommunications Act; and

• support for the majority of the proposed measures to modernise and improve laws relating to Australian intelligence agencies.20

15 AGD, Telecommunications (Interception and Access) Act annual report 2012-13, p. 5.

16 AGD, Telecommunications (Interception and Access) Act annual report 2012-13, p. 5.

17 AGD, Telecommunications (Interception and Access) Act annual report 2012-13, p. 5.

18 AGD, Telecommunications (Interception and Access) Act annual report 2012-13, p. 8.

19 AGD, Telecommunications (Interception and Access) Act annual report 2012-13, p. 9.

20 AGD, Telecommunications (Interception and Access) Act annual report 2012-13, p. 9.

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2.21 The integrity testing introduced by the Law Enforcement Integrity Legislation Amendment Act 2012 mentioned earlier in this chapter also applied to the TIA Act.21

Telecommunications interception warrants

2.22 During the reporting period a total of 4226 telecommunications interceptions warrants were issued by Judges and nominated AAT members.22

Table 2.2

Issuing Authority Family Court

Judges

Federal Court Judges

Federal Circuit Court Judges

Nominated AAT members

Total

Number of warrants issued

175 124 597 3 330 4 226

2.23 The table below shows the number of applications for warrants, telephone applications for warrants and renewal applications that were made, withdrawn and issued. The figures in brackets refer to the preceding reporting period 2011-12.23

Table 2.3

Applications

for warrants Telephone Applications for Warrants Renewal

applications

Made (3 764) 4 247 (111) 90 (513) 607

Refused/withdrawn (9) 15 (0) 1 (0) 0

Issued (3 755) 4 232 (111) 89 (513) 607

2.24 The committee notes that there appears to be a discrepancy between the total number of telecommunications warrants issued in Table 2.2 (4 226) compared to the total number issued in Table 2.3 (4 232). The committee is aware that this may not necessarily be an error but rather a difference that needs further clarification.

2.25 During the reporting period there was an instance in which a

telecommunications interception was undertaken without a warrant. The TIA Act

21 AGD, Telecommunications (Interception and Access) Act annual report 2012-13, p. 9.

22 Adapted from: AGD, Telecommunications (Interception and Access) Act annual report 2012-13, p. 11.

23 Adapted from: AGD, Telecommunications (Interception and Access) Act annual report 2012-13, p. 12.

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Page 12

allows agencies to undertake an interception without a warrant only in very specific circumstances, including if there is a serious threat to life or the possibility of serious injury. The AFP carried out an interception without a warrant on the grounds that the

person had threatened to kill or seriously injure another.24

Stored Communications

2.26 The TIA Act enables law enforcement agencies to apply for stored communications warrants to assist investigations. These warrants may apply to email, SMS or voice message communications. In 2012-13 agencies that applied for stored communication warrants included the Australian Competition and Consumer Commission (ACCC), the Australian Securities and Investments Commission (ASIC) and the Australian Customs and Border Protection Service.25

2.27 The table below shows the number of applications for warrants, telephone applications for warrants and renewal applications that were made, withdrawn and issued. The figures in brackets refer to the preceding reporting period 2011-12.26

Table 3.4

Applications for stored

communications warrants

Telephone Applications for stored communication warrants

Made (485) 562 (0) 0

Refused/withdrawn (2) 1 (0) 0

Issued (483) 561 (0) 0

2.28 During the reporting period, law enforcement agencies made 132 arrests, 152 prosecutions and 65 convictions based on evidence obtained under stored communications warrants.27 In total, information obtained under the interception and stored communications warrants were used in 3 083 arrests, 6 898 prosecutions and 2 765 convictions.28

Senator the Hon Ian Macdonald Chair

24 Telecommunications (Interception and Access) Act annual report 2012-13, p. 29.

25 Telecommunications (Interception and Access) Act annual report 2012-13, p. 37.

26 Adapted from: AGD, Telecommunications (Interception and Access) Act annual report 2012-13, p. 38.

27 Telecommunications (Interception and Access) Act annual report 2012-13, p. 39.

28 Telecommunications (Interception and Access) Act annual report 2012-13, p. 4.

182

APPENDIX 1

Reports tabled during the period 1 November 2013 and 30 April 2014 and referred to the committee

Department/authority/

Operation of an act or program

Date

submitted to Minister/Date received by Minister

Date tabled in Senate (or received in Senate out of

session)

Date tabled in the House of Reps

Attorney-General's portfolio

Department/authority - Report for 2012-13

Australian Crime Commission Assumed Identities - Annual report 2012-13 31.10.13/ 31.10.13

3.12.13 13.11.13

Australian Human Rights Commission - Aboriginal and Torres Strait Islander Social Justice Commissioner - Social Justice and Native Title - Report 2013

29.11.13/

29.11.13

11.12.13 11.12.13

Australian Human Rights Commission - National Children’s Commissioner - Children’s Rights Report 2013

29.11.13/

29.11.13

11.12.13 11.12.13

Australian Human Rights Commission - Report 58 - BB v Commonwealth of Australia

(Department of Immigration and Citizenship)

19.6.13/

19.6.13

13.11.13 27.6.13

Australian Human Rights Commission - Report 60 - inquiry into the complaint: Behme v Commonwealth of Australia

25.9.13/

25.9.13

12.11.13 13.11.13

Australian Human Rights Commission - Report 62 - inquiry into the complaint: Ince v

Commonwealth of Australia (Department of Immigration and Citizenship)

25.9.13/

25.9.13

12.11.13 13.11.13

Australian Human Rights Commission - Report 63 - inquiry into the complaint: Paul family v Commonwealth of Australia (Department of Immigration and Citizenship)

25.9.13/

25.9.13

12.11.13 13.11.13

183

Page 14

Australian Human Rights Commission - Report 64 - inquiry into the complaint: Immigration detainees with adverse security assessments v Commonwealth

29.11.13/

29.11.13

11.12.13 11.12.13

Australian Human Right Commission - Review into the Treatment of Women in the Australian Defence Force - Audit Report 2014

3.3.2014/

3.3.2014

26.3.14 26.3.14

Australian Law Reform Commission - Report 122 - Copyright and the Digital Economy - Final Report and the Summary Report - November 2013

2.12.13/

2.12.13

13.2.14 24.2.14

Australian Transaction Reports and Analysis Centre (AUSTRAC) - supervisory levy review report - The independent review 2013

20.12.13/

20.12.13

18.3.14 18.3.14

Board of the Australian Crime Commission - Chair Annual Report 2012-13 3.12.13/ 3.12.13

11.2.14

(17.12.13)

11.2.14

Commonwealth Ombudsman - Report on the Commonwealth Ombudsman’s activities in monitoring controlled operations - Australian Crime Commission and Australian Federal Police - Annual report 2012-13

12.11.13/

12.11.13

11.2.14 12.12.13

Control Orders and Preventative Detention Orders - Annual report 2012-13 26.9.13/ 26.9.13

3.12.13 14.11.13

Copyright Agency - Annual Report 2012-13 17.2.14/

17.2.14

18.3.14 18.3.14

Defence Abuse Response Taskforce - Fourth Interim Report to the Attorney-General and Minister for Defence - no legislative requirement to table the report

10.12.13/

10.12.13

11.2.14 11.12.13

High Court of Australia - Annual report 2012-13 29.10.13/ 29.10.13 13.11.13 13.11.13

Office of the Information Commissioner Annual report of the Information Commissioner’s activities in relation to eHealth - Annual report 2012-13

24.9.13/

8.10.13

3.12.13 2.12.13

184

Page 15

Old Parliament House - Annual report 2012-13 17.10.13/

17.10.13

12.11.13

(6.11.13)

13.11.14

Royal Commission into Institutional Responses to Child Sexual Abuse - Report of Case Study No.1 - The response of institutions to the conduct of Steven Larkins - no legislative requirement to table the report.

23.4.14/

24.4.14

13.05.14

(24.4.14)

13.5.14

Screenrights - Annual report 2012-13 23.10.13/

23.10.14

3.12.13 21.11.13

Operation of an act or program

Commonwealth Ombudsman - Report to the Attorney-General on the results of inspections of records under s.55 of the Surveillance Devices Act 2004 - Inspections finalised between 1 January - 30 June 2013 - Australian Commission for Law Enforcement Integrity 1 January to 30 June 2012; Australian Crime Commission 1 January to 30 June 2012; Australian Federal Police 1 January to 30 June 2012; New South Wales Police Force 1 July 2011 to 31 August 2012

22.11.13/

22.11.13

11.2.14 12.12.13

National Security Information (Criminal and Civil Proceedings) Act 2004 - Annual report 2012-13

26.9.13/

26.9.13

3.12.13 14.11.13

Report on the Operation of the War Crimes Act 1945 to 30 June 2013 - Annual report 2012-13 22.1.14/ 22.1.14

13.5.14 27.3.14

Review of the operation of Subdivision A of Division 6 of Part VIIC of the Crimes Act 1914 - Final Report October 2013

30.10.13/

30.10.13

3.12.13 2.12.13

Surveillance Devices Act 2004 - Annual Report 2012-13 22.10.13/ 22.10.13

11.2.14 12.12.13

Telecommunications (Interception and Access) Act 1979 - Annual Report 2012-13 22.10.13/ 22.10.13

11.2.14 12.12.13

Immigration and Border Protection portfolio

185

Page 16

Department/authority - Report for 2012-13

Australian Customs and Border Protection Service - Assumed Identities Authorisations and Use - Annual Report 2012-13

28.11.13/

12.12.13

4.3.14 25.3.13

Australian Customs and Border Protection Service - Report by the Minister - Conduct of Customs Officers under subsection 233BABA of the Customs Act 1901

4.11.13/

4.11.13

12.11.13

(11.11.13) 13.11.13

Migration Review Tribunal and Refugee Review Tribunal - Annual report 2012-13 3.10.13/ 10.10.13

12.11.13

(11.11.13) 13.11.13

Operation of an act or program

Migration Act 1958

Protection Visa Processing Taking More than 90 Days for the Reporting Period -

1 March 2013 to 30 June 2013

21.11.13/

22.11.13

11.12.13 11.12.13

Protection Visa Processing Taking More than 90 Days for the Reporting Period -

1 July 2013 to 31 October 2013

13.12.13/

14.12.13

19.3.14 19.3.14

Refugee Review Tribunal - Report pursuant to section 440A of the Migration Act on the Conduct of Refugee Review Tribunal Reviews Not Completed Within 90 Days - For The Period 1 March 2013 to 30 June 2013

21.11.13/

22.11.13

11.12.13 11.12.13

Refugee Review Tribunal - Report pursuant to section 440A of the Migration Act on the Conduct of Refugee Review Tribunal Reviews Not Completed Within 90 Days - For The Period 1 July 2013 to 31 October 2013

2.12.13/

2.12.13

19.3.14 19.3.14

186

Page 17

Section 486O of the Migration Act 1958 - [Personal identifier: 1000597, 1000605, 1001241, 1000987, 1000939, 1001187, 1000718, 1000938, 1000963, 1000980, 1001131, 1001277, 1000905, 1000924, 1000923, 1000825, 1000834, 1000858, 1001170, 1000899, 1000900, 1000862, 1000861, 1000904, 1000299, 1001228, 1001070, 1001069, 1001136, 1001105, 1001003, 1000271, 1000773, 1000744, 1000415, 1000798, 1000269, 1000769, 1000897, 1001062, 1000898, 1000896, 1000989, 1001113, 1001050, 1000959,

1000857.]

- Commonwealth Ombudsman's reports

- Government response to Ombudsman's reports, dated 27 February 2014

17.2.14/

17.2.14

5.3.14 5.3.14

Section 486O of the Migration Act 1958 [Personal identifier: 1001135, 1000971, 1000960, 1001121, 1000979, 1000981, 1000972, 1001150, 1001178, 1001171, 1000571, 1000766, 1000644, 1000677, 1000656, 1000768, 1000873, 1000792, 1000821, 1000793, 1000835, 1000823, 1000724, 1000723, 1000535, 1000678, 1000794, 1000712, 1000783, 1000664, 1000826, 1000680, 1000770, 1000675, 1000784, 1000772, 1000990, 1001145, 1001146, 1001139, 1000746, 1001138, 1001123, 1001153, 1001156, 1001046, 1001196, 1001206, 1001143, 1001140.]

- Commonwealth Ombudsman's reports

- Government response to Ombudsman's reports, dated 3 February 2014

24.1.14/

24.1.14

12.2.14 12.2.14

187

Page 18

Section 486O of the Migration Act 1958 [Personal identifier: 1001020, 1001072, 1001012, 1000233, 1001057, 1000248, 1001128, 1000065, 1000684, 1001100, 1001007, 1000489, 1001008, 1000982, 1000977, 1000983, 1001040, 1001006, 1000254, 1001077, 1000696, 1001090, 1001087, 1000974, 1000976, 1000274, 1000916, 1000920, 1000921, 1000919, 1000225, 1000918, 1000258, 1001111, 1001043, 1001035, 1001038, 1001039, 1001028, 1001098, 1001041, 1001029, 1001030, 1001031, 1000967, 1001047, 1001053, 1000996, 1001137, 1000984, 1000978, 1001112, 1001133, 1000997, 1000993, 1001058, 1001096, 1000842, 1000995, 1001019, 1000955, 1000662, 1001099, 1000994, 1001013, 1001103, 1198/13, 1399/13.]

- Commonwealth Ombudsman's reports

- Government response to Ombudsman's reports, dated 4 December 2013

25.11.13/

25.11.13

11.12.13 11.12.13

Section 486O of the Migration Act 1958 - [Personal identifier: 1001157, 1001076, 1001086, 1001048, 1001294, 1001233, 1001295, 1001147, 1001106, 1001107, 1001067, 1001083, 1001132, 1000881, 1000853, 1001191, 1001017, 1001092, 1001115, 1000909, 1001054, 1001373, 1001129, 1000926, 1001186, 1000988, 1000986, 1001064, 1001033, 1001005, 1000800, 1001015, 1001094, 1001034, 1000854, 1001210, 1000192, 1001063, 1000852, 1000902, 1000908, 1001097, 1001331, 1001279, 1001110, 1001108, 1001339, 1000880, 1001227, 1001336.]

- Commonwealth Ombudsman's reports

- Government response to Ombudsman's reports, dated 10 March 2014

4.3.14/

4.3.14

19.3.2014 19.3.2014

188

Page 19

Section 486O of the Migration Act 1958 [Personal identifier: 1378/13, 1489/13, 1491/13, 1502/13, 1506/13, 1513/13, 1516/13, 1518/13, 1539/13, 1563/13, 1564/13, 1568/13, 1578-82/13, 1584-5/13, 1587/13, 1589-92/13, 1601/13, 1618/13, 1624/13, 1626-8/13, 1630-1/13, 1638/13, 1640-1/13, 1646-7/13, 1649/13, 1659/13, 1670/13.]

- Commonwealth Ombudsman's reports

- Government response to Ombudsman's reports, dated 3 December 2013

12.11.13/

12.11.13

4.12.13 4.12.13

Section 486O of the Migration Act 1958 [Personal identifier: 851/12, 1054/12, 1113/12, 1142-3/13, 1145/13, 1147/13, 1158/13, 1200/13, 1221/13, 1263/13, 1368/13, 1380/13, 1393/13, 1397/13, 1400-1/13, 1405/13, 1424/13, 1427/13, 1438-41/13, 1443/13, 1452/13,

1454-5/13, 1483-4/13, 1488/13, 1493-4/13, 1496-7/13, 1501/13, 1512/13, 1514-5/13, 1517/13, 1521-38/13, 1541-48/13, 1550-53/13, 1557-9/13, 1561/13, 1565-6/13, 1569-77/13, 1586/13, 1593-1600/13, 1602-5/13, 1608-12/13, 1614-17/13, 1623/13, 1644/13, 1650-3/13, 1660/13.]

- Commonwealth Ombudsman's reports

- Government response to Ombudsman's reports, dated 3 December 13

19.11.13/

19.11.13

4.12.13 4.12.13

189

Page 20

Section 486O of the Migration Act 1958 [Personal identifier: 795/12, 860/12, 874/12, 964/12, 1026/12, 1104/12, 1108/12, 1111/12, 1115-6/12, 1120/12, 1127/12, 1129-31/13, 1133-4/13, 1137-8/13, 1150-1/13, 1167/13, 1198-9/13, 1214/13, 1358/13, 1367/13, 1371/13, 1373/13, 1376/13, 1382-3/13, 1396/13, 1398-9/13, 1402-3/13, 1406/13, 1422/13, 1444-51/13, 1453/13, 1456-7/13, 1468/13, 1477/13, 1485-7/13, 1490/13, 1492/13, 1498-500/13, 1503-5/13, 1507-8/13, 1509-11/13, 1519/13, 1540/13, 1560/13, 1567/13.]

- Commonwealth Ombudsman's reports

- Government response to Ombudsman's reports, dated 5 October 2013

25.9.13/

26.9.13

13.11.13 13.11.13

190

The Senate

Rural and Regional Affairs

and Transport

Legislation Committee

Annual reports (No. 2 of 2014)

August 2014

191

 Commonwealth of Australia 2014

ISBN 978-1-76010-062-9

This document was produced from camera-ready copy prepared by the Senate Rural and Regional Affairs and Transport Legislation Committee, and printed by the Senate Printing Unit, Department of the Senate, Parliament House, Canberra.

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Australia License.

The details of this licence are available on the Creative Commons website:

http://creativecommons.org/licenses/by-nc-nd/3.0/au/.

ii

192

Membership of the Committee

Members

Senator the Hon Bill Heffernan LP, New South Wales Chair

Senator Glenn Sterle ALP, Western

Australia

Deputy Chair

Senator Joe Bullock ALP, Western

Australia

Senator Sean Edwards LP, South Australia

Senator Rachel Siewert

Senator John Williams

AG, Western Australia

NATS, New South Wales

iii

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Committee Secretariat

Mr Tim Watling, Secretary Mr Jarrod Jolly, Research Officer Ms Lauren Carnevale, Administration Officer

PO Box 6100 Parliament House Canberra ACT 2600

phone: (02) 6277 3511 fax: (02) 6277 5811 e-mail: rrat.sen@aph.gov.au internet:http://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Rural_an d_Regional_Affairs_and_Transport/Annual_Reports

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Table of contents

Membership of the Committee ........................................................................ iii

Chapter 1.............................................................................................................. 1

Overview .................................................................................................................... 1

Terms of reference .................................................................................................. 1

Purpose of annual reports ....................................................................................... 2

Reports referred to the committee .......................................................................... 2

Reports not examined ............................................................................................. 3

Method of assessment ............................................................................................. 4

Timeliness in tabling of annual reports .................................................................. 4

Comments on reports .............................................................................................. 6

Chapter 2.............................................................................................................. 7

Annual reports of agencies ...................................................................................... 7

Agriculture Portfolio .............................................................................................. 7

Infrastructure and Regional Development Portfolio ............................................ 10

Appendix 1 ......................................................................................................... 15

Annual reports referred during the period 1 November 2013 to 30 April 2014 .................................................................................................................................. 15

Agriculture Portfolio ............................................................................................ 15

Infrastructure and Regional Development Portfolio ............................................ 18

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Chapter 1

Overview

1.1 This is the Senate Rural and Regional Affairs and Transport Legislation Committee's (the Committee) second and final report on annual reports in 2014. It provides an overview of the committee's examination of annual reports for the 2012- 13 financial year tabled after 31 October 2013. The committee is responsible for examining the annual reports of departments and agencies within the portfolios of:

• Agriculture; and

• Infrastructure and Regional Development. 1

Terms of reference

1.2 Under Senate Standing Order 25(20), annual reports of departments and agencies shall stand referred to the legislation committees in accordance with an allocation of departments and agencies in a resolution of the Senate. Each committee shall:

(a) Examine each annual report referred to it and report to the Senate whether the report is apparently satisfactory.

(b) Consider in more detail, and report to the Senate on, each annual report which is not apparently satisfactory, and on other annual reports which it selects for more detailed consideration.

(c) Investigate and report to the Senate on any lateness in the presentation of annual reports.

(d) In considering an annual report, take into account any relevant remarks about the report made in debate in the Senate.

(e) If the committee so determines, consider annual reports of departments and budget-related agencies in conjunction with examination of estimates.

(f) Report on annual reports tabled by 31 October each year by the tenth sitting day of the following year, and on annual reports tabled by 30 April each year by the tenth sitting day after 30 June of that year.

(g) Draw to the attention of the Senate any significant matters relating to the operations and performance of the bodies furnishing the annual reports.

(h) Report to the Senate each year whether there are any bodies which do not present annual reports to the Senate and which should present such reports.

1 Journals of the Senate, No. 2, 13 November 2013, pp 88-89.

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Purpose of annual reports

1.3 The tabling and scrutiny of annual reports by Senate committees, under Standing Order 25(20), is an important element in the process of the government's accountability to Parliament. The information provided in annual reports is placed on the public record and assists Parliament in its examination of the performance of departments and agencies and the administration of government programs.

Reports referred to the committee

1.4 The committee reported on annual reports tabled in the Senate by 31 October 2013 in its Report on Annual Reports (No. 1 of 2014) tabled on 19 March 2014, which examined four annual reports in detail.

1.5 In accordance with Standing Order 25(20)(f), this report examines those annual reports tabled between 1 November 2012 and 30 April 2013. The committee examined the following reports:

Agriculture Portfolio

• Australian Fisheries Management Authority (AFMA)—Report for 2012-13;

• Australian Livestock Export Corporation Limited (LiveCorp)—Report for 2012-13;

• Cotton Research and Development Corporation (CRDC)—Report for 2012-13;

• Dairy Australia Limited—Report for 2012-13;

• Fisheries Research and Development Corporation (FRDC)—Report for 2012-13;

• Grape and Wine Research and Development Corporation (GWRDC)— Report for 2012-13;

• Grains Research and Development Corporation (GRDC)—Report for 2012-13;

• Rural Industries Research and Development Corporation (RIRDC)—

Report for 2012-13;

• Sugar Research and Development Corporation (SRDC)—Report for 2012-13;

• Sugar Research and Development Corporation (SRDC)—Report for 2013-14—Final annual report for the period 1 July to 30 September 2013; and

• Wheat Exports Australia (WEA)—Report for the period 1 July 2012 to 31

December 2012 [Final Report].

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Infrastructure and Regional Development Portfolio

• Australian Rail Track Corporation (ARTC)—Report for 2012-13;

• National Capital Authority (NCA)—Report for 2012-13;

• National Heavy Vehicle Regulator (NHVR)—Report for the period 12

October 2012 to 30 June 2013;

• National Transport Commission (NTC)—Report for 2012-13; and

• Office of the National Rail Safety Regulator (ONRSR)—Report for the period 20 January to 30 June 2013.

1.6 Appendix 1 sets out a complete list of reports referred to the committee during the period 1 November 2013 to 30 April 2014 (including those not examined). This appendix includes references to the relevant legislation requiring annual reports, the letter of transmittal dates, the dates on which the annual reports were sent to, and received by, the relevant Minister, and the dates on which the annual reports were tabled.

Reports not examined

1.7 The committee is not obliged to report on Acts, statements of corporate intent, surveys, corporate plans or errata. The following seven documents were referred to the committee but have not been examined:

• Airservices Australia—Sydney Airport Demand Management Act 1997—

quarterly report on the maximum movement limit for the period 1 July to 30 September 2013;

• Airservices Australia—Sydney Airport Demand Management Act 1997—

quarterly report on the maximum movement limit for the period 1 October to 31 December 2013;

• Australian Rail Track Corporation Ltd (ARTC)—Statement of Corporate Intent 2013-14;

• Local Government (Financial Assistance) Act 1995—Report for 2010-11 on the operation of the Act, including maps of state and territory local government areas;

• Regional Forest Agreement between the Commonwealth and Western Australia—Report of the review of the implementation of the Regional Forest Agreement for the South-West Forest Region of Western Australia for the period 1999 to 2009—First independent review, dated December 2013;

• Report to the Parliament in relation to the Deed of Agreement 2007-13

(funding contract) with Dairy Australia Limited;

• Report to the Parliament in relation to the Funding Agreement 2010-14 with the Australian Livestock Export Corporation Limited (LiveCorp);

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• Report to the Parliament in relation to the Statutory Funding Agreement

2013-17 between the Commonwealth of Australia represented by the Department of Agriculture, Forestry and Fisheries and Dairy Australia Limited;

• Report to the Parliament in relation to the Statutory Funding Agreement 2013-17 between the Commonwealth of Australia represented by the Department of Agriculture, Forestry and Fisheries and Sugar Research Australia Limited; and

• Report to the Parliament on Live-stock Mortalities During Exports by Sea

for the Reporting Period 1 July 2013 to 31 December 2013.

Method of assessment

1.8 Senate Standing Orders require the committee to examine the annual reports referred to it to determine whether they are timely and ‘apparently satisfactory’. In forming its assessment, the committee considers whether the reports comply with the relevant legislation and guidelines for the preparation of annual reports:

• for departments of state and executive agencies these are: the Public Service Act 1999, subsections 63(2) and 70(2), and the Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies (Requirements for Annual Reports), Department of the Prime Minister and Cabinet (PM&C), approved by the Joint Committee of Public Accounts and Audit and updated by PM&C on 24 June 2013;2

• for Commonwealth authorities and companies: the Commonwealth

Authorities and Companies Act 1997 (the CAC Act), sections 9, 36 and 48, the Commonwealth Authorities (Annual Reporting) Orders 2011, the Commonwealth Companies (Annual Reporting) Orders 2011 (CAC Orders) and the requirements of the Corporations Act 2001;3 and

• for non-statutory bodies: the requirements are contained in the Government response to the report of the Senate Standing Committee on Finance and Government Operations on Non-statutory bodies, Senate Hansard, 8 December 1987, pp 2643-45.

Timeliness in tabling of annual reports

1.9 Standing Order 25(20)(c) requires the committee to report to the Senate on the late presentation of annual reports.

2 It should be noted that the Requirements for Annual Reports were updated again on 29 May 2014.

3 It should be noted that the Public Governance, Performance and Accountability Act 2013 replaced the CAC Act and the FMA Act as of 1 July 2014.

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1.10 Annual reports must be tabled in Parliament by 31 October each year, except where an agency's own legislation specifies a timeframe for its annual report.4 Those agencies reporting under the CAC Act are required to provide their annual reports to the Minister by the 15th day of the fourth month after the end of the financial year.5 Where the financial year ends on 30 June, this deadline translates to 15 October.

1.11 Where an agency's own legislation provides a timeframe for its annual report, an alternative timeframe applies. However, the committee reminds such bodies that it is the Government's policy that all annual reports should be tabled in Parliament by 31 October. 6

1.12 The committee has observed that while almost all agencies and other relevant entities sent their report within the specified timeframes, a considerable number were not tabled by 31 October 2013. The committee encourages the government to ensure annual reports are tabled by 31 October each year.

1.13 The committee also notes that the inaugural reports of the National Heavy Vehicle Regulator and Office of the National Rail Safety Regulator were not sent to, or received by, the responsible Commonwealth Ministers within the timeframes set by the entities' relevant legislation (three months after the end of the financial year or 30 September).7

1.14 Finally, the committee notes that the last annual report received from the Protected Zone Joint Authority (PZJA) was in January 2013 for the 2009-10 financial year.8 Under the relevant legislation, the PZJA is required to prepare an annual report 'as soon as practicable after 30 June in each year'.9 The committee encourages the PZJA to report in a more timely fashion.10

4 Department of the Prime Minister and Cabinet, Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies, 24 June 2013, p. 3.

5 Commonwealth Authorities and Companies Act 1997, s. 9.

6 Department of the Prime Minister and Cabinet, Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies, 24 June 2013, p. 3.

7 However, it is noted that the date on the letter of transmittal for the National Heavy Vehicle Regulator's Annual Report is 30 September 2013, the final day within the timeframe set. See Heavy Vehicle National Law Act 2012 (Qld), s 693(1); Rail Safety National Law (South Australia) Act 2012, s 43(1).

8 See Rural and Regional Affairs and Transport Legislation Committee, Annual reports (No. 1 of 2013), p. 34.

9 Torres Strait Fisheries Act 29, s 41(1).

10 The committee is aware that on 9 April 2014 the PZJA agreed to focus on 'finalising and publishing a series of annual reports' over the subsequent six to twelve months. See Australian Fisheries Management Authority, Protected Zone Joint Authority Stakeholder Meeting (2013), accessible at http://www.afma.gov.au/2014/04/protected-zone-joint-authority-stakeholder-meeting/

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Comments on reports

1.15 The committee considers that the all reports received were 'apparently satisfactory'. The following chapter of this report examines selected annual reports in further detail and incorporates suggestions for improvement.

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Chapter 2

Annual reports of agencies

2.1 This chapter examines, in greater detail, selected annual reports that have been received during the period 1 November 2013 to 30 April 2014, and provides the Senate with information that may be of particular interest. During the reporting period two new reporting entities were established and two ceased operation; their inaugural and final reports are examined in this chapter.

Agriculture Portfolio

Commonwealth authorities

Cotton Research and Development Corporation (CRDC)

2.2 The Cotton Research and Development Corporation (CRDC) has again provided a helpful table that lists its Key Performance Indicators (KPIs) and identifies whether they were achieved, partially achieved, or not achieved. Where a KPI was either partially achieved or not achieved, CRDC provided an explanation.1 The committee considers this best practice in terms of measuring performance and commends CRDC for the consistently high standard of annual reports it has produced.

2.3 During 2012-13, CRDC's 2013-18 Strategic Research and Development (R&D) Plan was finalised and approved. CRDC reported that the plan 'connects insights into changes in society with those of the cotton sector and identifies the critical importance of responding with better knowledge sharing and even stronger relationships between farmers, industry and customers.'2 The committee notes that in October 2012 ACIL Tasman conducted an independent review of CRDC's organisational performance with a view to guiding its implementation of the Strategic R&D Plan. The review concluded:

CRDC is a significant and respected organisation in cotton RD&E [Research, Development and Extension], whose actions are consistent with the PIERD Act, aligned with its Strategic Plan and the priorities of industry and government.3

2.4 In response to the review, CRDC reported that its Board and management had 'accepted the report recommendations for improvement to CRDC's performance framework, stakeholder engagement and human resource management.'4

Fisheries Research and Development Corporation (FRDC)

2.5 The committee notes that Fisheries Research and Development Corporation (FRDC) prepared its report in compliance with the Commonwealth Authorities and

1 Cotton Research and Development Corporation, Annual Report 2012-13, pp 120-132.

2 Cotton Research and Development Corporation, Annual Report 2012-13, p. 7.

3 Cotton Research and Development Corporation, Annual Report 2012-13, p. 7.

4 Cotton Research and Development Corporation, Annual Report 2012-13, p. 75.

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Companies (Report of Operations) Orders 2008 made (formerly) under section 48 of the Commonwealth Authorities and Companies Act 1997.5 The committee highlights that the 2008 Orders have been repealed and replaced by the Commonwealth Authorities (Annual Reporting) Orders 2011 and that future reports should be prepared in accordance with updated legislation. The committee again reminds FRDC that an assessment on the effectiveness of operations should be included in its annual report, as opposed to only listing 'achievements'.6

Grape and Wine Research and Development Corporation (GWRDC)

2.6 During 2012-13, the Grape and Wine Research and Development Corporation (GWRDC) implemented a new five-year Strategic Research, Development and Extension (RD&E) Plan. GWRDC reported that the plan 'specifically encompasses more active direction of RD&E projects, a heightened emphasis on extension activities, and more active engagement with research providers to ensure the delivery of research outcomes that can be adopted by [its] stakeholders and used for continuous improvement and innovation.'7 GWRDC also indicated that it was actively working towards and supported a merger with the Wine Australia Corporation (WAC). However, it would continue to emphasise 'its commitment to maintaining the distinction between the R&D levies reserved for GWRDC's investments and the marketing levies allocated to WAC.'8 The committee notes that the new industry statutory body, the Australian Grape and Wine Authority, commenced operations on 1 July 2014.

2.7 The committee reiterates previous comments that the use of columns in the GWRDC's annual reports detrimentally affects readability.9 It also suggests that performance reporting could be improved by more clearly assessing whether targets and outcomes have been achieved, were in progress, or not achieved.10 The committee commends the incorporation of a compliance index with a clear distinction between the relevant legislative reporting requirements.11

5 Fisheries Research and Development Corporation, Annual Report 2012-13, pp 178-179.

6 Fisheries Research and Development Corporation, Annual Report 2012-13, pp 36, 49, 63, 70, 79.

7 Grape and Wine Research and Development Corporation, Annual Report 2012-13, p. 14.

8 Grape and Wine Research and Development Corporation, Annual Report 2012-13, p. 17.

9 See Rural and Regional Affairs and Transport Legislation Committee, Annual reports (No. 2 of 2013), p. 7.

10 Grape and Wine Research and Development Corporation, Annual Report 2012-13, pp 20-43.

11 Grape and Wine Research and Development Corporation, Annual Report 2012-13, pp 100-101.

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Sugar Research and Development Corporation (SRDC)

2.8 On 28 June 2013, the bills that provided for the restructuring of sugar research and development organisations were passed by the Australian Parliament.12 On 5 August 2013, the then Minister for Agriculture, Fisheries and Forestry announced that Sugar Research Australia Limited (SRA) would be the new Industry Owned Company with responsibility for undertaking and funding research on behalf of industry. SRDC's current and previously approved Research, Development and Extension (RD&E) projects were thus transferred to SRA for management. SRDC's assets and liabilities were also transferred and SRDC wound up as at 30 September 2013.13

2.9 The committee notes that the final two annual reports of the SRDC did not respond to previous comments made by the committee,14 whereby both reports again had an incomplete compliance index.15

Prescribed agencies

Wheat Exports Australia (WEA)

2.10 The Wheat Export Marketing Amendment Bill 2012, passed by both houses of Parliament on 29 November 2012, brought about the abolition of the Wheat Export Accreditation Scheme and the Wheat Export Charge on 10 December 2012 and the WEA ceased operating on 31 December 2012.16 The committee examined the WEA's 2011-12 annual report in December 2013.17 However, it was later referred a final report for the period 1 July to 30 December 2012.

2.11 The WEA was established with the objective of regulating 'the export of bulk wheat (that is, other than in bags and containers) from Australia through the Wheat Export Accreditation Scheme 2008 and to inform government, growers, accredited bulk wheat exporters and industry stakeholders of outcomes.'18 These arrangements 'were intended to increase competition in the bulk wheat export market.'19 WEA reported that between 1 July 2012 and 31 December 2012, no new exporters were

12 See Sugar Research and Development Services Act 2013; Sugar Research and Development Services (Consequential Amendments and Transitional Provisions) Act 2013; and Sugar Research and Development Services (Consequential Amendments—Excise) Act 2013.

13 Sugar Research and Development Corporation, Annual Report 2013-14 (Final Annual Report, 1 July 2012 - 30 September 2013), p. 5.

14 See Rural and Regional Affairs and Transport Legislation Committee, Annual reports (No. 2 of 2013), p. 9.

15 Sugar Research and Development Corporation, Annual Report 2012-13, p. 171; Sugar Research and Development Corporation, Annual Report 2013-14 (Final Annual Report, 1 July 2012 - 30 September 2013), p. 144.

16 Wheat Exports Australia, Annual Report 2012-13 (1 July 2012 to 31 December 2012), pp 7-8.

17 See Rural and Regional Affairs and Transport Legislation Committee, Annual reports (No. 2 of 2013), pp 11-12.

18 Wheat Exports Australia, Annual Report 2012-13 (1 July 2012 to 31 December 2012), p. 7.

19 Wheat Exports Australia, Annual Report 2012-13 (1 July 2012 to 31 December 2012), p. 7.

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accredited, 14 exporters renewed their accreditation and one exporter surrendered its accreditation, leaving a total of 22 accredited exporters as at 9 December 2012.20 WEA also outlined future transitionary arrangements that will take place following the closure of WEA:

The requirement for providers of grain port terminal services to pass the access test as a condition for exporting bulk wheat was retained until 30 September 2014. After that date the access test will be abolished on the condition that a mandatory industry code of conduct covering access to grain export terminals is in place.

If the code is approved the market will move to full deregulation from 1 October 2014. All aspects of the industry will then be subject to general competition law administered by the Australian Competition and Consumer Commission and complemented by the code.

The government is to establish a national wheat industry advisory taskforce to examine current arrangements along the supply chain and provide recommendations on the appropriate use of surplus funds from the Wheat Export Charge.21

Infrastructure and Regional Development Portfolio

Commonwealth authorities

National Transport Commission (NTC)

2.12 The National Transport Commission (NTC) is not a Commonwealth authority for the purposes of the Commonwealth Authorities and Companies Act 1997 (CAC Act), however, the NTC's enabling legislation states that certain sections of the CAC Act apply to it, including section 9, relating to annual reporting requirements.22 Under schedule 1 of the CAC Act, an agency's report must include a report of operations prepared in accordance with the CAC Orders.

2.13 The committee highlights that the NTC has once again provided an accessible and informative report, with clear and detailed reporting of the NTC's performance, including safety and productivity outcomes. However, it notes the absence of a statement indicating the annual report of operations is adopted by resolution of the

directors as well as how and when approval was given. This statement must also indicate that directors are responsible for the preparation and contents of the annual report of operations.23

2.14 During 2012-13 the regulators established by the Heavy Vehicle National Law and Rail Safety National Law commenced operations, with the NTC leading the

20 Wheat Exports Australia, Annual Report 2012-13 (1 July 2012 to 31 December 2012), p. 4.

21 Wheat Exports Australia, Annual Report 2012-13 (1 July 2012 to 31 December 2012), p. 8.

22 National Transport Commission Act 2003, s 38.

23 Commonwealth Authorities (Annual Reporting) Orders 2011, order 6.

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development of these laws.24 The 2012 Review of the National Transport Commission and other relevant transport bodies, which examined the role of the NTC in supporting the start of the national Heavy Vehicle Regulator (NHVR) and National Rail Safety Regulator (NRSR) in January 2013, made a number of recommendations. The NTC reported that it had taken these recommendations into consideration in developing its 2013-2014 to 2015-16 Strategic Plan and Work Program.25

Prescribed agencies

National Capital Authority (NCA)

2.15 The National Capital Authority (NCA) is responsible for administering the Commonwealth's interest in Canberra as the National Capital. The nation celebrated the centenary of the founding of Canberra in March 2013, with the NCA coordinating many Centenary Celebrations. During 2012-13 a review of the National Capital Plan commenced and the NCA reported that it would continue reform of the plan in 2013-14. The NCA also reported that in 2012-13 it had received $4.620m in additional revenue over 2011-12 (predominantly a result of increased funding from the Commonwealth Government in response to Dr Allan Hawke's review of the NCA) and was budgeting consecutive surpluses over the coming three financial years to recover the deficit position from 2011-12.26

2.16 This committee and the Senate Finance and Public Administration Committee have previously made comments that the NCA should focus its future annual reports on the assessment of its performance, rather than providing a description of its activities.27 While the NCA's Annual Report 2012-13 incorporated substantially more statistics and specific milestones than previous reports, it still lacked any clear and substantive assessment of its performance against relevant outcomes. The committee encourages the NCA to address this issue in future reports.

Other agencies

Office of the National Rail Safety Regulator (ONRSR)

2.17 The Office of the National Rail Safety Regulator (ONRSR) commenced operations on 20 January 2013, established in July 2012 by the collective Australian Governments through an Intergovernmental Agreement and by industry. It was created to enforce compliance with the Rail Safety National Law (South Australia) Act 2012 (RSNL), with the objectives of 'encouraging rail safety improvements across Australia, reducing the bureaucracy that operators have faced in obtaining multiple accreditations of each state in which they operate, and providing the environment in

24 The inaugural annual reports of the National Heavy Vehicle Regulator and National Rail Safety Regulator are discussed below.

25 National Transport Commission, Annual Report - 2012-13, p. 28.

26 National Capital Authority, Annual Report 2012-13, pp viii-x.

27 See Rural and Regional Affairs and Transport Legislation Committee, Annual reports (No. 2 of 2012), pp 14-15; Senate Finance and Public Administration Committee, Annual Reports (No. 2 of 2011), pp 23-24.

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which industry can harmonise standards to increase productivity and reduce costs.'28 The ONRSR is a body corporate established under the RSNL and is not subject to Ministerial direction in the exercise of its functions and powers. As of 30 June 2013, the RSNL had yet to be enacted in Victoria, Queensland, the ACT and Western Australia.29

2.18 The Regulator is required to prepare an annual report in accordance with section 43 of the RSNL and deliver it to the responsible Ministers for tabling in the Parliament of each participating jurisdiction, including the Commonwealth. The

committee notes the high standard of the Regulator's inaugural report, which meets its legislative requirements and also includes helpful tables and clear statistical information. The committee commends the incorporation of a compliance index, which assisted the committee to easily check that reporting requirements had been met.30 However, the committee encourages the NHVR to comply with the Printing standards for documents presented to Parliament, which specify that all documents to be presented in Parliament must be printed in international B5 size.31

2.19 The committee appreciates that the effectiveness of the Regulator is constrained until all jurisdictions have enacted the required legislation, a significant milestone that is set to be achieved during 2013-14.32 It nevertheless highlights the Regulator's key achievements to date, including the establishment of:

• a national register of accreditation and notice information on the ONRSR website;

• a drug and alcohol testing program to test rail safety workers; and

• a National Operations Committee to harmonise the approach to rail safety in different jurisdictions.33

National Heavy Vehicle Regulator (NHVR)

2.20 In August 2011, the states, territories and the Australian Government agreed through the Intergovernmental Agreement on Heavy Vehicle Regulatory Reform to establish the National Heavy Vehicle Regulator (NHVR). The NHVR was created to administer one set of rules for all heavy vehicles under the Heavy Vehicle National Law Act 2012 (Qld). The NHVR is a statutory body corporate with perpetual succession and is neither a governmental corporation nor a departmental body and there are no shareholders. It was formally established on 12 October 2012 and

28 Office of the National Rail Safety Regulator, Annual Report 2012-13, p. 1.

29 Office of the National Rail Safety Regulator, Annual Report 2012-13, pp 1-3.

30 Office of the National Rail Safety Regulator, Annual Report 2012-13, p. 55.

31 This document can be accessed at http://www.aph.gov.au/Parliamentary_Business/Chamber_documents/Tabled_Papers/Advice_t o_government_agencies

32 Office of the National Rail Safety Regulator, Annual Report 2012-13, p. 22.

33 Office of the National Rail Safety Regulator, Annual Report 2012-13, p. 20.

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commenced partial operations on 21 January 2013, with a view to assuming its full responsibilities once the Heavy Vehicle National Law is in place in all jurisdictions.34

2.21 Section 693 of the Heavy Vehicle National Law Act 2012 (Qld) sets out the reporting requirements for the NHVR, including that it transmit the report to all responsible Ministers for tabling in each House of the Parliament of each participating jurisdiction and of the Commonwealth. The annual report referred to the committee is the NHVR's inaugural annual report and is for the period 12 October 2012 to 30 June 2013. The committee notes that because the NHVR's Corporate Plan did not come into effect till 1 July 2013, certain reporting requirements were not triggered in the first year of NHVR operations.35 The NHVR stated that 'underpinning the [reporting] period' was:

…the organisational transformation from multi-operations separated both geographically and legislatively, to an amalgamated unit in one location, the introduction of new core systems including a central call centre, and the creation of management teams for both the National Heavy Vehicle Accreditation Scheme (NHVAS), the Performance-Based Standards (PBS) Scheme design and call centre.36

2.22 While the committee notes that the NHVR sought to satisfy its legislative requirement to report on industry feedback,37 it is of the view that an actual statement summarising industry comments is needed, as opposed to just outlining outcomes purportedly achieved due to industry feedback. The committee also encourages the NHVR to comply with the Printing standards for documents presented to Parliament, which specify that all documents to be presented in Parliament must be printed in international B5 size.38 Finally, it would assist the committee if future reports incorporated a compliance index.

2.23 The committee notes the comments of the Delegate of the Auditor-General of Queensland that the NHVA recorded 'a substantial net loss, net liability position, and negative operating cash flow position in 2012-13' and that 'significant uncertainty exists regarding the entity's ability to fund its operational activities' because 'the source and amount of funding subsequent to 30 June 2013 has not yet been determined.'39 However, the committee draws attention to the fact that the '[b]oard members of the Regulator are of the opinion that there are reasonable grounds to

34 National Heavy Vehicle Regulator, Annual Report 2012-13, p. 11.

35 National Heavy Vehicle Regulator, Annual Report 2012-13, p. 45.

36 National Heavy Vehicle Regulator, Annual Report 2012-13, p. 8.

37 Section 693(2)(a)(v), Heavy Vehicle National Law Act 2012 (Qld); See National Heavy Vehicle Regulator, Annual Report 2012-13, pp 35-39.

38 This document can be accessed at http://www.aph.gov.au/Parliamentary_Business/Chamber_documents/Tabled_Papers/Advice_t o_government_agencies

39 National Heavy Vehicle Regulator, Annual Report 2012-13, p. 80.

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believe there will be continuing support from the Commonwealth Government and participating states and territories' to meet its financial requirements.40

Senator Bill Heffernan

Chair

40 National Heavy Vehicle Regulator, Annual Report 2012-13, p. 58.

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Appendix 1

Annual reports referred during the period 1 November 2013 to 30 April 2014 Agriculture Portfolio

Legislation Letter of

transmittal date

Date Sent to Minister

Date

received by Minister

Tabling date*

Commonwealth authorities

Cotton Research and Development Corporation (CRDC)—Report for 2012-13

PIERD Act 1989

CAC Act 1997

07/10/2013 09/10/2013 11/10/2013 10/12/2013

Fisheries Research and Development Corporation (FRDC)—Report for 2012-13

PIERD Act 1989

CAC Act 1997

19/09/2013 19/09/2013 15/10/2013 11/02/2014 (received 17/12/2013*)

Grains Research and Development Corporation (GRDC)—Report for 2012-13

PIERD Act 1989

CAC Act 1997

15/10/2013 15/10/2013 15/10/2013 3/12/2013

Grape and Wine Research and Development Corporation (GWRDC)— Report for 2012-13

PIERD Act 1989

CAC Act 1997

19/09/2013 19/09/2013 14/10/2013 10/12/2013

Rural Industries Research and Development Corporation (RIRDC)— Report for 2012-13

PIERD Act 1989

CAC Act 1997

15/10/2013 15/10/2013 16/10/2013 3/12/2013

Sugar Research and Development Corporation— Report for 2012-13

PIERD Act 1989

CAC Act 1997

30/09/2013 25/09/2013 27/09/2013 12/12/2013

Sugar Research and Development Corporation— Report for 2013-14—Final annual report for the period 1 July to 30 September 2013

PIERD Act 1989

CAC Act 1997

31/01/2014 12/02/2014 12/02/2014 25/03/2014

Prescribed agencies

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Legislation Letter of

transmittal date

Date Sent to Minister

Date

received by Minister

Tabling date*

Australian Fisheries Management Authority— Report for 2012-13.

Fisheries Administration Act 1991

FMA Act 1997

21/10/2013 21/10/2013 26/10/2013 11/02/2014 (Received 18/12/2013*)

Wheat Exports Australia— Report for the period 1 July 2012 to 31 December 2012 [Final Report]

Wheat Export Marketing Act 2008

FMA Act 1997

18/10/2013 24/10/3013 24/10/2013 03/12/2013

Other

Australian Livestock Export Corporation Limited (LiveCorp)—Report for 2012-13

Australian Meat and Live-stock Industry Act 1997

Corporations Act 2001

n/a 04/10/2013 04/10/2013 10/12/2013

Dairy Australia Limited— Report for 2012-13 Dairy Produce Act 1986

Corporations Act 2001

n/a 28/11/2013 28/11/2013 12/02/2014

Regional Forest Agreement between the Commonwealth and Western Australia— Report of the review of the implementation of the

Regional Forest Agreement for the South-West Forest Region of Western Australia for the period 1999 to

2009—First independent review, dated December 2013

Regional Forest Agreements Act 2002 20/12/2013 07/01/2014 09/01/2014 18/03/2014

Report to the Parliament in relation to the Funding Agreement 2010-14 with the Australian Livestock Export Corporation Limited (LiveCorp)

Australian Meat and Live-Stock Industry Act 1997

n/a 18/11/2013 20/11/2013 10/12/2013

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Legislation Letter of

transmittal date

Date Sent to Minister

Date

received by Minister

Tabling date*

Report to the Parliament in relation to the Statutory Funding Agreement 2013-17 between the Commonwealth of Australia represented by the Department of Agriculture, Forestry and Fisheries and Dairy Australia Limited

Dairy Produce Act 1986

n/a 16/10/2013 16/10/2013 13/11/2013

Report to Parliament in relation to the Deed of Agreement 2007-13 (funding contract) with Dairy Australia Limited

Dairy Produce Act 1986

n/a 28/11/2013 28/11/2013 12/02/2014

Report to the Parliament on Live-stock Mortalities During Exports by Sea for the Reporting Period 1 July 2013 to 31 December 2013

Australian Meat and Live-stock Industry Act 1997

n/a 23/01/2014 23/01/2014 13/02/2014

Report to the Parliament in relation to the Statutory

Funding Agreement 2013-17 between the Commonwealth of Australia represented by the Department of

Agriculture, Forestry and Fisheries and Sugar Research Australia Limited

Sugar Research and Development Services Act

n/a 04/10/2013 04/10/2013 10/12/2013

* An asterisk denotes reports presented to the President out-of-session.

213

18

Infrastructure and Regional Development Portfolio

Legislation Letter of

transmittal date

Date Sent to Minister Date received

by

Minister

Tabling date*

Commonwealth authorities

National Transport Commission (NTC)—Report for 2012-13

National Transport Commission Act

2003

CAC Act 1997

(sections 9, 18, 20 and schedule 1)

4/10/2013 29/10/2013 29/10/2013 12/11/2013 (Received 01/11/2013*)

Commonwealth companies

Australian Rail Track Corporation (ARTC)— Report for 2012-13

Corporations Act 2001

CAC Act 1997 (section 36)

n/a 20/09/2013 24/09/2013 12/11/2013

(Received 01/11/2013*)

Prescribed agency

National Capital Authority (NCA)—Report for 2012-13 Australian Capital Territory (Planning

and Land

Management) Act

1988

FMA Act 1997

22/10/2013 23/10/2013 23/10/2013 11/12/2013

Other

Airservices Australia— Sydney Airport Demand Management Act 1997— quarterly report on the maximum movement limit for the period 1 July to 30 September 2013

Sydney Airport Demand Management Act 1997

n/a 25/10/2013 28/10/2013 10/12/2013

Airservices Australia— Sydney Airport Demand Management Act 1997— quarterly report on the maximum movement limit for the period 1 October to 31 December 2013

Sydney Airport Demand Management Act 1997

n/a 24/01/2014 28/01/2014 4/03/2014

214

19

Legislation Letter of

transmittal date

Date Sent to Minister Date received

by

Minister

Tabling date*

Australian Rail Track Corporation Ltd (ARTC) — Statement of Corporate Intent 2013-14

Commonwealth Government Business Enterprise Governance and Oversight Guidelines October 2011

n/a 8/10/2013 8/10/2013 10/12/2013

Local Government (Financial Assistance) Act 1995—Report for 2010-11 on the operation of the Act, including maps of state and territory local government areas.

Local Government (Financial Assistance) Act 1995

19/11/2013 31/10/2013 03/11/2013 11/02/2014 (Received 29/01/2014*)

National Heavy Vehicle Regulator—Report for the period 12 October 2012 to 30 June 2013

Heavy Vehicle National Law Queensland 2012

30/09/2013 13/01/2014

14/01/2014

26/02/2014

Office of the National Rail Safety Regulator—Report for the period 20 January to 30 June 2013

Rail Safety National Law (South Australia) 2012

n/a 30/10/2013

31/10/2013

13/02/2014

* An asterisk denotes reports presented to the President out-of-session.

215

216