Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Senate Legislative and General Purpose Standing Committees Consolidated reports on the examination of annual reports No. 2 of 2013


Download PDF Download PDF

Australian Senate

Senate Legislation Committees

Reports on the examination of annual reports No. 2 of 2013

December 2013

© Parliament of the Commonwealth of Australia 2013

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 2013), dated October 2013 ................................. 1

Economics Committee

Annual reports (No. 2 of 2013), dated December 2013............................ 33

Education, Employment and Workplace Relations Committee

Annual reports (No. 2 of 2013), dated December 2013............................ 69

Environment and Communications Committee

Annual reports (No. 2 of 2013), dated December 2013............................ 91

Finance and Public Administration Committee

Annual reports (No. 2 of 2013), dated December 2013.......................... 105

Foreign Affairs, Defence and Trade Committee

Annual reports (No. 2 of 2013), dated December 2013.......................... 117

Legal and Constitutional Affairs Committee

Annual reports (No. 2 of 2013), dated December 2013.......................... 139

Rural and Regional Affairs and Transport Committee

Annual reports (No. 2 of 2013), dated December 2013.......................... 169

The Senate

Community Affairs

Legislation Committee

Annual reports (No. 2 of 2013)

October 2013

1

ii

 Commonwealth of Australia 2013

ISBN 978-1-74229-909-9

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

2

iii

Membership of the Committee Members

Senator Claire Moore, Chair ALP, Queensland

Senator Rachel Siewert, Deputy Chair AG, Western Australia

Senator Carol Brown ALP, Tasmania

Senator Mark Furner ALP, Queensland

Senator Bridget McKenzie Nationals, Victoria

Senator Dean Smith LP, Western Australia

Secretariat Dr Ian Holland Committee Secretary

Ms Eloise Menzies Research Officer Ms Carol Stewart Administrative Officer

Suite S1.59 Telephone: (02) 6277 3515

Parliament House Fax: (02) 6277 5829

CANBERRA ACT 2600 Email: community.affairs.sen@aph.gov.au

3

4

Table of Contents

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

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

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

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

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

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

Apparently satisfactory ........................................................................................... 3 

General comments ............................................................................................... 3 

Timeliness of reports .............................................................................................. 4 

Annual reports for 2011-12 ................................................................................ 5 

Wreck Bay Aboriginal Community Council ....................................................... 5 

Northern Land Council ........................................................................................ 6 

Anindilyakwa Land Council ............................................................................... 6 

Medical Training Review Panel .......................................................................... 7 

Publishing standards for the Presentation of Documents to Parliament ................ 7 

Compliance Index ................................................................................................... 7 

Letter of transmittal—General Practice Education and Training Limited ............. 8 

Awards .................................................................................................................... 8 

Australasian Reporting Awards ........................................................................... 8 

Institute of Public Administration Australia (IPAA) ACT Division Annual Report Awards ..................................................................................................... 8 

Comments made in the Senate ............................................................................... 8 

Bodies not presenting annual reports to the Senate ................................................ 8 

Additional Reports .................................................................................................. 9 

Chapter 2............................................................................................................ 11 

Annual reports of Commonwealth Authorities, Companies and Agencies ...... 11 

5

Health and Ageing Portfolio ................................................................................. 11 

National Health Performance Authority ............................................................ 11 

General Practice Education and Training Limited ............................................ 11 

Private Health Insurance Administration Council ............................................ 12 

Families, Housing, Community Services and Indigenous Affairs Portfolio ........ 12 

Equal Opportunity for Women in the Workplace Agency ................................ 12 

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

Tiwi Land Council ............................................................................................. 13 

Torres Strait Regional Authority ....................................................................... 14 

Annual reports of Statutory Office Holders ........................................................ 15 

Executive Director of Township Leasing .......................................................... 15 

Non-statutory advisory panel ................................................................................ 16 

Advisory Panel on the Marketing in Australia of Infant Formula .................... 16 

Appendix 1 ......................................................................................................... 17 

List of departments, agencies and bodies required to present annual reports to the Senate ................................................................................................................. 17 

Families, Housing, Community Services and Indigenous Affairs portfolio ........ 17 

Health and Ageing portfolio ................................................................................. 21 

Human Services portfolio ..................................................................................... 26 

Annual reports from non-Portfolio Agencies ....................................................... 26 

6

Chapter 1 Overview

1.1 This is the second Senate Community Affairs Legislation Committee (the committee) report on annual reports for 2013.1 It provides an overview of the committee's examination of annual reports for the 2011-12 financial year tabled between 1 November 2012 and 30 April 2013.2

Terms of Reference 1.2 On 29 September 2010,3 a resolution of the Senate allocated the following three portfolios to this committee:

 Health and Ageing

 Families, Housing, Community Services and Indigenous Affairs; and

 Human Services.

1.3 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;

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

2 The Anindilyakwa Land Council and Northern Land Council reports were tabled outside this timeframe. See section 1.21 of this report for further details.

3 Journals of the Senate, No. 2, 29 September 2010, pp. 88-89.

7

2

(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.

Purpose of annual reports 1.4 The primary purpose of annual reports is accountability, in particular to the Parliament.4 The tabling of annual reports places a great deal of 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 1.5 Senate Standing Order 25(20) 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.

1.6 Pursuant to subsections 63(2) and 70(2) of the Public Service Act 1999, departments of state and executive agencies, prescribed under section 5 of the Financial Management and Accountability Act 1997 (FMA Act) must prepare annual reports in accordance with the Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies.5

1.7 Amendments to the Requirements for Annual Reports applicable for the 2011-12 reporting period are:

 Consultancy reporting — recognising the functionality provided by the

AusTender database, the requirement to provide details of consultancy contracts let in the reporting year, previously set out in Attachment D to the Requirements, 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.

 Work health and safety — minor revisions to the existing requirement

reflecting the provisions of the Work Health and Safety Act 2011.

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 28 June 2012, p. 3, http://www.dpmc.gov.au/guidelines/index.cfm (accessed 6 August 2013). Hereafter referred to as Requirements for Annual Reports, 2012.

5 Department of the Prime Minister and Cabinet, Requirements for Annual Reports, 2012, p. 1, ss. 3(1).

8

3

 Freedom of information — simplification of reporting following

accommodation of major reforms to freedom of information reporting in the 2010-11 Requirements.6

1.8 Under section 48 of the Commonwealth Authorities and Companies Act 1997 (the CAC Act), the Minister for Finance and Deregulation outlines the annual reporting requirements for Commonwealth authorities and companies in the Commonwealth Authorities and Companies (Report of Operations) Orders. Section 9 of the CAC Act applies to Commonwealth authorities and specifies the deadline for the presentation of an annual report to the responsible Minister. Section 36 of the CAC Act outlines the reporting obligations of Commonwealth companies.

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

1.10 Requirements 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 response was incorporated into the Senate Hansard of 8 December 1987.7

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.

Apparently satisfactory 1.12 Standing order 25(20)(a) requires the committee to report to the Senate on whether annual reports are 'apparently satisfactory'. In making this assessment, the committee considers such aspects as timeliness of presentation and compliance with relevant reporting requirements.

General comments

1.13 This report considers fourteen annual reports received during the period of 1 November 2012 and 30 April 2013.8 Eight reports have been examined to determine whether or not their contents satisfy the detailed legislative requirements as set out in the CAC Act. Two annual reports have been checked to ascertain whether or not their contents satisfy the mandatory criteria for inclusion as required by the FMA Act. One statutory office holder, one non-statutory advisory panel, one statutory agency, and one statutory authority were assessed.

1.14 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

6 Department of the Prime Minister and Cabinet, Requirements for Annual Reports, 2012, p. i.

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

8 See, n. 2, above.

9

4

legislation under which reports are required to be provided, tabling information, and the reporting period during which the report was provided. Reports tabled by 31 October 2012 were considered in the committee's first Report on Annual Reports.9

1.15 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.

Timeliness of reports 1.16 Under Standing Order 25(20)(c), the committee must also report to the Senate on any lateness in the presentation of annual reports. The Requirements for Annual Reports state that:

A copy of the 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.

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.10

1.17 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.

1.18 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

(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.

1.19 Under section 36 of the CAC Act:

9 Community Affairs Legislation Committee, Report on Annual Reports 2013(1), March 2013, available at http://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Community_Affairs/Annu al_Reports/2013/report1/index.

10 Department of the Prime Minister and Cabinet, Requirements for Annual Reports, 2012, p. 2.

10

5

(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.

1.20 In the absence of any specific provision, subsection 34C(2) of the Acts Interpretation Act 1901 requires bodies to present annual reports to ministers within 6 months after the end of the period reported upon, and ministers must table reports within 15 sitting days after receipt.

Annual reports for 2011-12

1.21 The majority of the annual reports referred to this committee were tabled within the specified period or shortly thereafter. The committee acknowledges that the Anindilyakwa Land Council, the Northern Land Council, the Tiwi Land Council, the Wreck Bay Aboriginal Community Council, the Indigenous Land Corporation, and the Torres Strait Regional Authority all provided notification that their reports would be delayed.

Wreck Bay Aboriginal Community Council

1.22 The Wreck Bay Aboriginal Community Council wrote to the Minister for Families, Housing, Community Services and Indigenous Affairs on 16 January 2013 seeking a further extension to the annual report deadline under section 34C(4) of the Acts Interpretation Act 1901. The Minister had originally granted an extension until 30 November 2012, and this was extended to 31 January 2013. The Minister granted the extension, but noted that she had asked her Department to 'work with the Wreck Bay Aboriginal Community Council to help ensure that the next annual report is finalised in a more timely manner'.11 The request by the Wreck Bay Aboriginal

11 The Hon Jenny Macklin MP, Minister for Families, Housing, Community Services and Indigenous Affairs, Letter to Mr Mal Hansen, CEO, Wreck Bay Aboriginal Community Council, tabled 7 February 2013.

11

6

Community Council and the Minister's response were tabled on 7 February 2013. The annual report for the Wreck Bay Aboriginal Community Council was transmitted to the Minister on 20 February 2013, received on 4 March 2013, and tabled in the Senate on 13 March 2013.

Northern Land Council

1.23 In its Report on Annual Reports 2013(1), the committee noted that the Northern Land Council sought an extension until 15 February 2013 to submit its annual report, and that the extension was granted. However, the Northern Land Council's annual report had not been tabled when the committee's Report on Annual Reports 2013(1) was published in March 2013.

1.24 The Northern Land Council wrote to the Minister for Families, Housing, Community Services and Indigenous Affairs on 31 January 2013 under section 34C(4) of the Acts Interpretation Act 1901 requesting an extension until 30 April 2013 to table its annual report. The Minister had originally granted an extension until 30 November 2012, and this was extended to 15 February 2013.The Minister granted the request, but noted that:

the continued delays by the Northern Land Council in finalising its 2011- 12 Annual report are of increasing concern to me and the Parliament more generally. I will agree to this third extension request but require your assurance that the report will be finalised and provided to me in a timely manner to allow tabling in the Parliament before 30 April 2013.12

1.25 The annual report for the Northern Land Council was, however, not transmitted to the Minister until 30 May 2013, and was tabled in the Senate on 25 June 2013. As the Northern Land Council's annual report was not received during the reporting period for this report, it will be considered in the committee's Report on Annual Reports 2014(1).

Anindilyakwa Land Council

1.26 In its Report on Annual Reports (No. 1) 2013, the committee noted that the Anindilyakwa Land Council sought an extension until 14 December 2012 to submit its annual report, and that the extension was granted. However, the Anindilyakwa Land Council's annual report had not been tabled when the committee's Report on Annual Reports 2013(1) was published in March 2013.

1.27 The Anindilyakwa Land Council wrote to the Minister for Families, Housing, Community Services and Indigenous Affairs on 24 April 2013 under section 34C(4) of the Acts Interpretation Act 1901 requesting an extension to 31 May 2013 to table its annual report. As noted, the Minister had originally granted an extension until 14 December 2012, and this was extended first to 15 March 2013, and again to 30 April 2013. The Minister granted the further extension, highlighting in her letter the

12 The Hon Jenny Macklin MP, Minister for Families, Housing, Community Services and Indigenous Affairs, Letter to Mr Robert Graham, A/g CEO, Northern Land Council, tabled 20 March 2013.

12

7

concerns expressed in the committee's Report on Annual Reports 2013(1) and noting that:

In light of the Committee's findings, and as a gesture of commitment to improved governance, I suggest the Anindilyakwa Land Council may like to provide an explanation of the delays experienced in previous years in its 2012-13 annual report and the steps taken to ensure the timely presentation of the report for the current financial year.13

1.28 The committee notes the Minister's suggestions with approval and looks forward to seeing this explanation incorporated into the 2012-2013 annual report. The 2011-2012 annual report for the Anindilyakwa Land Council was presented to and received by the Minister on 15 May 2013, and tabled in the Senate on 18 June 2013. As the Anindilyakwa Land Council's annual report was not received during the reporting period for this report, it will be considered in the committee's Report on Annual Reports 2014(1).

Medical Training Review Panel

1.29 The sixteenth report of the Medical Training Review Panel (MTRP) was tabled in the Senate on 19 June 2013, outside the reporting period for this report. Late reporting has been a pattern for the MTRP and the committee believes this relates to the MTRP's cycle of data collection from universities over the calendar year, as discussed in the committee's Report on Annual Reports 2013(1).14

Publishing standards for the Presentation of Documents to Parliament 1.30 The Department of Prime Minister and Cabinet has produced Guidelines for the Presentation of Documents to the Parliament. Section 4 covers the Presentation of Government documents (including Department and agency annual reports) to Parliament. Section 4.1, Printing and publishing standards for documents, states that:

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

1.31 The committee is pleased to report that, following on from the Report on Annual Reports 2012(2), General Practice Education and Training Limited, and the Northern Land Council have complied with these guidelines.

Compliance Index 1.32 The committee is pleased to note that in line with new reporting requirements, almost all annual reports considered for this report included a compliance index. The committee requests that General Practice Education and Training Limited include a compliance index in their next annual report.

13 The Hon Jenny Macklin MP, Minister for Families, Housing, Community Services and Indigenous Affairs, Letter to Mr Tony Wurramarrba, Chairman, Anindilyakwa Land Council, tab

led 17 June 2013.

14 Community Affairs Legislation Committee, Report on Annual Reports 2013(1), March 2013, p. 5.

13

8

Letter of transmittal—General Practice Education and Training Limited 1.33 The committee 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 CAC Act and was approved by a resolution of the directors.

Awards

Australasian Reporting Awards

1.34 The committee congratulates Aboriginal Hostels Limited for receiving a Gold Award at the Australasian Reporting Awards. The committee also congratulates the Australian Institute of Health and Welfare, the Department of Families, Housing, Community Services and Indigenous Affairs, the Department of Health and Ageing, and Indigenous Business Australia for receiving Silver Awards, and the Department of Human Services for receiving a Bronze Award.

Institute of Public Administration Australia (IPAA) ACT Division Annual Report Awards

1.35 The committee congratulates Indigenous Business Australia for receiving a Gold Award and the Australian Organ and Tissue Donation and Transplantation Authority and Aboriginal Hostels Limited for receiving Silver Awards in the Institute of Public Administration Australia (IPAA) ACT Division Annual Report Awards. The committee also congratulates the Torres Strait Regional Authority for receiving a Highly Commended award. The committee notes that the Department of Health and Ageing and the Australian Institute of Health and Welfare also received Bronze Awards for their online reports.

Comments made in the Senate 1.36 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.

Bodies not presenting annual reports to the Senate 1.37 In accordance with Standing order 25(21)(h), the committee is required to report to the Senate on whether there are any bodies which do not present annual reports to the Senate and which should present such reports. As noted in its first report of 2013, in its 2012 (No. 2) report, the committee recommended that the Commonwealth government consider whether an annual report of the National E-Health Transition Authority (NEHTA) should be presented to the Parliament. The committee is not aware of any government response to this recommendation.

Additional Reports 1.38 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 2013 and 30

14

9

June 2013. The committee notes that these reports are referred to it for their information only and the committee is not required by the terms of the Standing Order to report on these:

 Aboriginal Land Commissioner — Report on review of Part IV of the

Aboriginal Land Rights (Northern Territory) Act 1976 — report by Justice John Mansfield AM, dated March 2013 (tabled in the Senate 25/06/2013)

 Australian Radiation Protection and Nuclear Safety Agency (ARPANSA) — Quarterly report for the period 1 January to 31 March 2013 (tabled in the Senate 19/06/2013)

 Tobacco Advertising Prohibition Act 1992 — Report for 2012 pursuant to s34A of the Act (tabled in the Senate 19/06/2013)

 National Health and Medical Research Council (NHMRC) — NHMRC Licensing Committee — Report on the operation of the Research Involving Human Embryos Act 2002 for the period 1 September 2012 to 28 February 2013 (tabled in the Senate 18/06/2013)

 National Health and Medical Research Council, Australian Research Council

and Australian Vice-Chancellors' Committee — National statement on ethical conduct in human research, dated March 2007 — Replacement page 53 (tabled in the Senate 18/06/2013)

 Australian Radiation Protection and Nuclear Safety Agency (ARPANSA) —

Quarterly report for the period 1 October to 31 December 2012 (tabled in the Senate 13/05/2013)

15

16

Chapter 2

Annual reports of Commonwealth Authorities, Companies and Agencies

2.1 This chapter reviews and provides selected comments on portfolio annual reports.

Health and Ageing Portfolio

National Health Performance Authority

2.2 The National Health Performance Authority (NHPA) presented its first annual report to the committee in this reporting period, having been established as a result of the signing of the Council of Australian Governments (COAG) National Health Reform Agreement on 2 August 2011. The NHPA is a prescribed agency under the Financial Management and Accountability Act 1997, and operates under the National Health Reform Act 2011 to monitor and report

on the comparable performance of healthcare organisations to stimulate and inform improvements in the Australian health system, increase transparency and accountability and inform consumers.1

2.3 The report notes that the first six months of operation of the NHPA have been focused on building structure and capacity for the agency, consulting with stakeholders, and establishing the Strategic Plan 2012-2015, as well as a reporting plan and a data plan. The NHPA's operations over this period were funded through appropriations from the Department of Health and Ageing.

2.4 The committee commends the NHPA on its clearly structured and well-presented report, which complies with almost all applicable reporting requirements. The notable exception is the report's statement addressing consultancies, which appears to be addressing another reporting requirement.2 Future reports would also benefit from a more detailed statement on compliance with the Commonwealth Fraud Control Guidelines. The committee looks forward to learning more of the substantive activities of the NHPA in future reports.

General Practice Education and Training Limited

2.5 General Practice Education and Training Limited (GPET) was incorporated in 2001 under the Corporations Act 2001 as a wholly owned not-for-profit company,

1 National Health Performance Authority, Annual Report 2011-2012, p. iii.

2 National Health Performance Authority, Annual Report 2011-2012, p. 26.

17

'established to fund and oversee general practice vocational training throughout Australia.'3

2.6 During the reporting period, Associate Professor Richard Matthews AM replaced Professor Simon Willcock as Board Chair.

2.7 The committee generally finds the GPET annual report to be well presented and easy to navigate. As noted in chapter 1, the addition of a compliance index to future annual reports would assist the committee in determining compliance with requirements such as work health and safety reporting requirements, significant changes affecting the company under section 40 of the Commonwealth Authorities and Companies Act 1997, and judicial decisions and reviews by outside bodies affecting the company. Future reports would also benefit by including further details around staffing, and should include a letter of transmittal.

Private Health Insurance Administration Council

2.8 The Private Health Administration Council (PHIAC) is charged with regulating the private health insurance industry in Australia. It was established as a body corporate under section 82B of the National Health Act 1953 in 1989, and continues its existence as an independent statutory authority under section 264-1 of the Private Health Insurance Act 2007.4

2.9 The committee commends the Private Health Insurance Administration Council for a succinct and well-presented annual report that was readable against the Portfolio Budget Statements 2011-12.5 The committee congratulates PHIAC for exceeding targets for the fund review program.6 Future annual reports would benefit from the inclusion of exemptions from reporting requirements and education and performance review of directors in the compliance index.

Families, Housing, Community Services and Indigenous Affairs Portfolio

Equal Opportunity for Women in the Workplace Agency

2.10 The committee notes that the Equal Opportunity for Women in the Workplace Agency (EOWA) became the Workplace Gender Equality Agency after the passage of the Equal Opportunity for Women in the Workplace Amendment Bill 2012, after the conclusion of this reporting period. The committee looks forward to learning more of the transition process for the Agency in future annual reports.

3 General Practice Education and Training Limited, Annual Report 2011-2012, p. 49.

4 Private Health Insurance Administration Council, Annual Report 2011-2012, p. ix.

5 Department of Health and Ageing, Portfolio Budget Statements 2011-12, pp. 739-766.

6 Department of Health and Ageing, Portfolio Budget Statements 2011-12, p. 751, and Private Health Insurance Administration Council 2012, Annual Report 2011-2012, p. 10.

18

2.11 The committee is also pleased to note that, following from comments in its Report on Annual Reports 2012(2), EOWA has included a comprehensive compliance index in its report.

Indigenous Land Corporation

2.12 The Indigenous Land Corporation (ILC) is a statutory authority under the CAC Act and is enabled by the Aboriginal and Torres Strait Islander Act 2005. In the 2011-12 reporting period the ILC appointed four new directors to the Board, including Dr Dawn Casey, who replaced Shirley McPherson as ILC Board Chairperson. The committee acknowledges the important work undertaken by the outgoing ILC board members.

2.13 The committee commends the ILC on its well-presented and comprehensive report, which was clearly readable against the Portfolio Budget Statements 2011-12, and makes good use of numerous case studies. The committee is pleased to note the inclusion in the annual report of a thorough compliance index that specifies compliance with the requirements of the Commonwealth Authorities and Companies (Report of Operations) Orders 2011. The committee was also impressed that the ILC has demonstrated a commitment to better practice in annual reporting through its compliance with some additional non-mandatory principles from the Requirements for Annual Reports.7

Tiwi Land Council

2.14 This is the first annual report received from the new Chairman of the Tiwi Land Council Mr Gibson Farmer Illortaminni. The committee notes the work undertaken over the preceding six years by the outgoing chairman

Mr Robert Tipungwuti.

2.15 The report noted that recruitment of new rangers was currently on hold due to funding uncertainty, and it was noted that 'ad-hoc fee for service work cannot sustain ranger programmes'.8 Only $10 858 was invoiced during the reporting period.9 On a brighter note, it was reported that the Cadet Ranger Programme continues at Tiwi College, with 12 students currently studying Certificate I in Conservation and Land Management.10

2.16 It was reported that the Tiwi Land Council has received resource Exploration Licence Applications from Rio Tinto, Kalbar Resources, Tennant Creek Gold, and MBS Oil. The total area subject to these applications constitutes over 90 per cent of the Tiwi islands, as well as the majority of the coastline of both Bathurst and

7 Department of the Prime Minister and Cabinet, Requirements for Annual Reports, 2012.

8 Tiwi Land Council, Annual Report 2010-2011, p. 12.

9 Tiwi Land Council, Annual Report 2010-2011, p. 14.

10 Tiwi Land Council, Annual Report 2010-2011, p. 13.

19

Melville Islands. The report states that although these applications were 'discussed at length':

The Land Council considers that Tiwi Forestry, Maritime Services and Shipping and the Fishing and Tourism businesses that are currently building momentum do promise to yield excellent participatory and working benefits for Tiwi people. There is no evidence we have that mining attracts the same participation of our workforce or the sustainability rewards sought by Tiwi leadership. Prospects of risking up to 90 per cent of our land for "digging up purposes" are an option currently being resisted by a majority of landowners.11

2.17 The committee notes that future reports from the Tiwi Land Council would benefit from the inclusion of a glossary and general index. The compliance indexes for future reports would also be improved by noting where the discussion of ethics and risk management policies, as well as education and performance review processes for directors, can be found in the body of the annual report.

Torres Strait Regional Authority

2.18 The Torres Strait is located in Australia and is part of the north eastern Queensland. The area is approximately 150 kilometres wide at its narrowest point and is situated between the tip of Queensland's Cape York Peninsula and

Papua New Guinea. The region consists of over 270 islands and reefs.

2.19 The Torres Strait Regional Authority's (TSRA) annual report provides an overview of the TSRA's efforts towards Closing the Gap. The report highlights a number of achievements in education, early childhood education, economic participation and health.12 Despite these improvements, there is still much work to be done to close the gap. For instance, it was reported that:

A synthesis of ABS data from the 2011 Census and Queensland Health information shows that death rates continue to be higher in the Torres Strait and Northern Peninsula Area than in mainly Australia with cardiovascular disease, type 2 diabetes, mental illness and substance abuse, accident and injury, neoplasms (cancer)…being responsible for over 64 per cent of the burden of disease in the region.13

2.20 Following a review of governance practices, changes have been made to the way in which the TSRA Board operates. Twenty electoral wards have been created with the first election held in September 2012.14 The TSRA Board consists of 20 elected members who are all Torres Strait Islander or Aboriginal people living in the region. Board Members are elected every four years by their individual communities.

11 Tiwi Land Council, Annual Report 2010-2011, p. 23.

12 Torres Strait Regional Authority, Annual Report 2011-2012, p. 91.

13 Torres Strait Regional Authority, Annual Report 2011-2012, p. 94.

14 Torres Strait Regional Authority, Annual Report 2011-2012, p. 103.

20

2.21 The committee commends the TSRA for receiving a highly commended award at the Institute of Public Administration Australia (IPAA) ACT Division Annual Report Awards. The committee particularly commends the TSRA for its comprehensive and well-structured compliance index.

Annual reports of Statutory Office Holders

Executive Director of Township Leasing

2.22 The Executive Director of Township Leasing was established as an independent statutory office under section 20B of the Aboriginal Land Rights (Northern Territory) Act 1976 to 'hold and administer certain types of leases on behalf

of the Commonwealth.'15 During the reporting period Greg Roche was the acting Executive Director Township Leasing.

2.23 The report notes that a second whole of township lease in the Tiwi Islands was signed during the reporting period following renewed negotiations between the Tiwi Land Council and the Department of Families, Housing, Community Services and Indigenous Affairs. The report states that,

The Traditional Owners of Milikapiti and Wurankuwu were inspired to enter negotiations after seeing the benefits to Wurrumiyanga from its Whole of Township Lease… As part of the township lease agreement the Milikapiti and Wurankuwu communities received an advance rental payment of $1 760 000 and $190 000 respectively for the first 15 years operation of the lease, and a community benefits package. The community benefits package comprised $160 000 for Wurankuwu and $3 million for Milikapiti. In accordance with community wishes this has been spent on a multipurpose demountable for Wurankuwu, and will go towards housing in Milikapiti.16

2.24 The committee looks forward to discussion of further progress in the area of township leasing in future annual reports.

15 Executive Director of Township Leasing, Annual Report 2011-2012, p. 8.

16 Executive Director of Township Leasing, Annual Report 2011-2012, p. 1.

21

Non-statutory advisory panel

Advisory Panel on the Marketing in Australia of Infant Formula

2.25 The committee commends the Advisory Panel on the Marketing in Australia of Infant Formula for continuing to produce an annual report to Parliament when there is no legislative requirement for it to do so.

Senator Claire Moore

Chair

22

Appendix 1

List of departments, agencies and bodies required to present annual reports to the Senate Families, Housing, Community Services and Indigenous Affairs 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 2013

Received during period for Report 2

of 2013

Aboriginal Hostels Limited (AHL) CAC Act - company

(limited by guarantee)

Section 36 of the Commonwealth Authorities and Companies Act 1997

2011-12 30/10/12 30/10/12 n/a 10/10/12;

10/10/12

√

Aboriginal Land Commissioner, Northern Territory

Statutory office holder Section 61 of the Aboriginal Land Rights (Northern

Territory) Act 1976

2011-12 30/10/12 29/10/12 n/a 02/10/12;

02/10/12

√

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

1 Report received outside of the reporting periods for 2013 Reports on Annual Reports; see the committee's comments in Chapter 1, p. 6.

23

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 2013

Received during period for Report 2

of 2013

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

2011-12 30/10/12 29/10/12 n/a 26/09/12;

27/09/12

√

Central Land Council 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 30/10/12 30/10/12 n/a 02/10/12;

02/10/12

√

Coordinator-General for Remote Indigenous Services2 Statutory office holder

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

2011-12 10/10/12 10/10/12 n/a 6/09/12;

7/09/12

√

Department of Families, Housing, Community Services and Indigenous Affairs

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

2011-12 10/10/12 10/10/12 n/a 06/09/12;

07/09/12

√

2 The Coordinator-General for Indigenous Services is included in the Department of Families, Housing, Community Services and Indigenous Affairs' Annual Report 2011- 12 as Appendix K.

24

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 2013

Received during period for Report 2

of 2013

Equal Opportunity for Women in the Workplace Agency (EOWA)

FMA Act - Prescribed agency

Section 12 of the Equal Opportunity for Women in the Workplace Act 1999

2011-12 27/11/12 27/11/12 n/a 08/11/12;

08/11/12

√

Executive Director of Township Leasing

Statutory office holder Section 20R of the Aboriginal Land Rights (Northern

Territory)Act 1976

2011-12 20/11/12 1/11/12 n/a 02/10/12;

02/10/12

√

Indigenous Business Australia (IBA) CAC Act - statutory

authority

Section 189 of the Aboriginal and Torres Strait Islander Act 2005 and section 9 of the Commonwealth Authorities and Companies Act 1997

2011-12 31/10/12 31/10/12 n/a 02/10/12;

02/10/12

√

Indigenous Land Corporation (ILC) CAC Act - statutory

authority

Section 9 of the Commonwealth Authorities and Companies Act 1997

2011-12 19/11/12 26/11/12 14/11/12 02/10/12;

02/10/12

√

Northern Land Council3 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

3 Report received outside of the reporting periods for 2013 Reports on Annual Reports; see the committee's comments in Chapter 1, p. 6.

25

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 2013

Received during period for Report 2

of 2013

Outback Stores Pty Ltd CAC Act -

company (limited by shares)

Section 36 of the Commonwealth Authorities and Companies Act 1997

2011-12 31/10/12 31/10/12 n/a 21/09/12;

21/09/12

√

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

2011-12 30/10/12 29/10/12 n/a 02/10/12;

02/10/12

√

Tiwi Land Council CAC Act -

statutory authority

Section 9 of the Commonwealth Authorities and Companies Act 1997

2011-12 05/02/13 5/02/13 13/12/12 16/11/12;

20/11/12

√

Torres Strait Regional Authority CAC Act - statutory

authority

Section 144ZB Aboriginal and Torres Strait Islander Act 2005 and Section 9 of the Commonwealth Authorities and Companies Act 1997

2011-12 19/11/12 26/11/12 14/11/12 10/10/12;

10/10/12

√

Wreck Bay Aboriginal Community Council CAC Act - statutory

authority

Section 9 of the Commonwealth Authorities and Companies Act 1997

2011-12 13/03/13 13/03/13 n/a 20/02/13;

04/03/13

√

26

21

Health and Ageing 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 2013

Received during period for Report 2 of

2013

Advisory Panel on the Marketing in Australia of Infant Formula

Non-statutory advisory panel No legislative requirement to table

2011-2012 19/03/13 19/03/13 n/a 08/02/13;

11/02/13

√

Aged Care Commissioner Statutory office holder - Departmental body

Section 95A-12 of the Aged Care Act 1997 2011-12 30/10/12 11/10/12 n/a 21/08/12;

22/08/12

√

Aged Care Standards and Accreditation Agency Ltd (ACSAA)

CAC Act - company (limited by guarantee)

Section 9 of the Commonwealth Authorities and Companies Act 1997

2011-12 29/10/12 29/10/12 24/10/12 26/09/12;

26/09/12

√

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

2011-12 29/10/12 29/10/12 15/10/12 28/09/12;

10/10/12

√

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

authority

Section 9 of the Commonwealth Authorities and Companies Act 1997

2011-12 31/10/12 31/10/12 n/a 12/10/12;

17/10/12

√

27

22

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 2013

Received during period for Report 2 of

2013

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

2011-12 30/10/12 11/10/12 n/a 26/09/12;

26/09/12

√

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

2011-12 10/10/12 10/10/12 n/a 14/09/12;

17/09/12

√

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

2011-12 30/10/12 30/10/12 n/a 15/09/12;

15/09/12

√

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

2011-12 31/10/12 31/10/12 n/a 17/09/12;

17/09/12

√

Department of Health and Ageing Department of the State

Section 63 of the Public Service Act 1999 (PS Act) 2011-12 30/10/12 11/10/12 n/a 31/08/12;

31/08/12

√

28

23

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 2013

Received during period for Report 2 of

2013

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

2011-12 30/10/12 30/10/12 n/a 16/10/12;

17/10/12

√

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

(limited by guarantee)

Section 9 of the Commonwealth Authorities and Companies Act 1997

2011-12 27/11/12 27/11/12 n/a 24/10/12;

24/10/12

√

Health Workforce Australia (HWA) CAC Act - statutory

authority

Section 9 of the Commonwealth Authorities and Companies Act 1997

2011-12 29/10/12 29/10/12 12/10/12 27/09/12;

02/10/12

√

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

2011-12 30/10/12 11/10/12 n/a 07/09/12;

07/09/12

√

Medical Training Review Panel (MTRP)4 Statutory authority

Subsection 3GC(4) of the Health Insurance Act 1973 2011-12 19/06/13 19/06/13 n/a 27/02/13;

28/02/13

4 Report received outside of the reporting periods for 2013 Reports on Annual Reports; see the committee's comments in Chapter 1, p. 7.

29

24

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 2013

Received during period for Report 2 of

2013

National Blood Authority (NBA) FMA Act - Prescribed

agency

Section 44 of the National Blood Authority Act 2003 2011-12 29/10/12 29/10/12 24/10/12 25/09/12;

09/10/12

√

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

2011-12 31/10/12 31/10/12 n/a 09/10/12;

10/10/12

√

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

2011-12 27/11/12 26/11/12 n/a 29/10/12;

29/10/12

√

National Industrial Chemicals Notification and Assessment Scheme (NICNAS)

Regulatory Scheme - Departmental body

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

2011-12 31/10/12 31/10/12 n/a 26/09/12;

03/10/12

√

Office of the Gene Technology Regulator Statutory office holder -

Departmental body

Section 136 of the Gene Technology Act 2000 2011-12 30/10/12 29/10/12 n/a 21/09/12;

21/09/12

√

30

25

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 2013

Received during period for Report 2 of

2013

Pharmaceutical Benefits Pricing Authority (PBPA)5 Non-statutory body

Section 99YBC of the National Health Act 1953 2011-12 30/10/12 11/10/12 n/a 31/08/12;

31/08/12

√

Private Health Insurance Administration Council (PHIAC)

CAC Act - statutory authority

Section 9 of the Commonwealth Authorities and Companies Act 1997

2011-12 19/11/12 26/11/12 05/11/12 10/10/12;

11/10/12

√

Private Health Insurance Ombudsman (PHIO) FMA Act - Prescribed

agency

Section 253-50 of the Private Health Insurance Act 2007 2011-12 30/10/12 30/10/12 n/a 24/09/12;

08/10/12

√

Professional Services Review (PSR) FMA Act - Prescribed

agency

Section 106ZQ of the Health Insurance Act 1973 2011-12 29/10/12 29/10/12 16/10/12 05/10/12;

10/10/12

√

5 Incorporated into the Department of Health and Ageing's Annual Report 2011-12 as Appendix 2.

31

26

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 2013

Received during period for Report 2 of

2013

Australian Hearing CAC Act -

statutory authority

Section 9 of the Commonwealth Authorities and Companies Act 1997

2011-12 10/10/12 10/10/12 n/a 24/09/12;

24/09/12

√

Department of Human Services Department of the State

Section 63 of the Public Service Act 1999 (PS Act) 2011-12 29/10/12 29/10/12 16/10/12 28/09/12;

28/09/12

√

Annual reports from non-Portfolio Agencies 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 2013

Received during period for Report 2 of

2013

Australian Health Practitioner Regulation Agency6 Statutory Agency

Schedule 3, Clause 8 of the Health Practitioner Regulation National Law Act 2009, as in force in each state and territory

2011-12 5/02/13 5/02/13 12/12/12 28/11/12

2/12/12

√

6 The Australian Health Practitioner Regulation Agency supplies an annual report to the Ministerial Council of the Council of Australian Governments which supplies a copy to each state and territory Parliament and to the Commonwealth.

32

The Senate

Economics

Legislation Committee

Annual reports (No. 2 of 2013)

December 2013

33

© Commonwealth of Australia 2013

ISBN 978-1-74229-910-5

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

34

Senate Economics Legislation Committee

Members

Senator David Bushby, Chair, LP, TAS

Senator Gavin Marshall, Deputy Chair, ALP, VIC

Senator Alan Eggleston, LP, WA

Senator Louise Pratt, ALP, WA

Senator John Williams, NATS, NSW

Senator Nick Xenophon, IND, SA

Secretariat

Dr Kathleen Dermody, Secretary Ms Kate Campbell, Research Officer Ms Morana Kavgic, Research Officer 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

35

36

TABLE OF CONTENTS

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

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

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

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

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

Purpose and requirements 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 ......................................................... 5

Timeliness ............................................................................................................... 6

Remarks made in the Senate................................................................................... 7

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

Chapter 2............................................................................................................ 11

Individual 2011-2012 Annual Reports ................................................................. 11

Reports under the Industry, Innovation, Science, Research and Tertiary Education portfolio ............................................................................................... 11

Reports under the Resources, Energy and Tourism portfolio .............................. 14

Reports under the Treasury portfolio ................................................................... 15

Appendix 1 ......................................................................................................... 17

Industry, Innovation, Science, Research and Tertiary Education portfolio..... 17

List of annual reports tabled in the Senate in the period 1 November 2012 - 30 April 2013 and later ................................................................................................ 17

Appendix 2 ......................................................................................................... 19

Resources, Energy and Tourism Portfolio ........................................................... 19

37

List of annual reports tabled in the Senate in the period 1 November 2012 - 30 April 2013 and later ................................................................................................ 19

Appendix 3 ......................................................................................................... 21

Treasury portfolio .................................................................................................. 21

List of annual reports tabled in the Senate in the period 1 November 2012 - 30 April 2013 and later ................................................................................................ 21

Appendix 3 ......................................................................................................... 21

Treasury portfolio .................................................................................................. 21

List of annual reports tabled in the Senate in the period 1 November 2012 - 30 April 2013 and later ................................................................................................ 21

Appendix 4 ......................................................................................................... 23

Industry, Innovation, Science, Research and Tertiary Education portfolio structure ................................................................................................................ 23

Appendix 5 ......................................................................................................... 25

Resources, Energy and Tourism portfolio structure and outcomes ..................... 25

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

Treasury portfolio structure and outcomes ........................................................... 27

38

Abbreviations

ACRE Australian Centre for Renewable Energy

ARENA Australian Renewable Energy Agency

ASIC Act Australian Securities and Investments Commission Act 2001

CAC Act Commonwealth Authorities and Companies Act 1997

DCCEE Department of Climate Change and Energy Efficiency

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

DIISRTE Department of Industry, Innovation, Science, Research and Tertiary Education

DRET Department of Resources, Energy and Tourism

FMA Act Financial Management and Accountability Act 1997

HoR House of Representatives

IIF Innovation Investment Fund

PM&C Department of Prime Minister and Cabinet

PM&C guidelines Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies, last revised on 28 June 2012

R&D Research and Development

39

40

Chapter 1

Overview

Introduction

1.1 This is the Senate Economics Legislation Committee's (the committee) second and final report on annual reports in 2013. It provides an overview of the committee's examination of annual reports for the 2011-12 financial year tabled after 31 October 2012.

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, Innovation, Science, Research and Tertiary Education;

• Resources, Energy and Tourism; and

• Treasury.

1

1.3 The structures and outcomes for each of these portfolios are summarised in Appendices 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;

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.

41

(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.

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 Indeed, as highlighted in the Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies (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.3

1.7 The annual reporting requirements are set down in the following instruments:

• Departments of State and Executive Agencies present their annual reports pursuant to sections 63(2) and 70(2) of the Public Service Act 1999,4 and the Department of the Prime Minister and Cabinet's (PM&C) Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies (Requirements for Annual Reports), revised 28 June 2012.

• 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).

• For non-statutory bodies, the requirements are contained in the Government

response to the report of the Senate Standing Committee on Finance and Public Administration on Non-statutory bodies, Senate Hansard, 8 December 1987, pp 2643-45.

3 Department of the Prime Minister and Cabinet, Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies (Requirements for Annual Reports), 28 June 2012, paragraph 5.

4 The financial statements must be produced in accordance with the amended Financial Management and Accountability Orders (Financial Statements for reporting periods ending on or after 1 July 2008).

42

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

1.9 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 Department of the Prime Minister and Cabinet (PM&C) guidelines, to the extent that the requirements do not conflict.

Changes to reporting requirements

1.10 In preparing this report, the committee kept in mind the requirements released by the Department of PM&C, and approved by the Joint Committee of Public Accounts and Audit. Requirements for Annual Reports for 2011-12 include significant amendments relating to:

• consultancy reporting;

• carer recognition (applicable to public service care agencies);

• work health and safety; and

• freedom of information. 5

1.11 Attention also needs to be given to other information to be included by legislation, including advertising and market research, as well as ecologically sustainable development and environmental performance.

1.12 The specific requirement for disability reporting in individual annual reports has been discontinued given that it occurs through other mechanisms. To preserve the level of parliamentary scrutiny of disability issues, each report must now include an explicit and transparent reference to other reporting mechanisms, noting where agency level information can be found. A suggested form of words to satisfy the requirement is set out in the PM&C Requirements for Annual Reports released in June 2012.

Organisational and operational changes

1.13 Due to the machinery of government changes of March 2013 and the subsequent amendment of the Administrative Arrangements Order, the Department of Climate Change and Energy Efficiency (DCCEE) was abolished and the Climate Change functions transferred to the Department of Industry, Innovation, Science, Research and Tertiary Education (DIISRTE), thereby creating the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education (DIICCSRTE).

5 Department of the Prime Minister and Cabinet, Requirements for Annual Reports, 28 June 2012, p. i.

43

1.14 Despite this change, the portfolio coverage of the committee remains unchanged due to a motion passed in the Senate on 15 June 2013 determining that responsibility for climate change would stay with the Senate Environment and Communications Committee.6

1.15 Similarly, the Energy Efficiency functions from the DCCEE were transferred to the Department of Resources, Energy and Tourism (DRET). As such, the Resources, Energy and Tourism portfolio now encompasses matters relating to energy efficiency.

1.16 This report examines the final annual report by the Australian Centre for Renewable Energy (ACRE) Board. Projects and measures previously managed by the ACRE Board, the Australian Solar Institute, and DRET as part of the Clean Energy Future Package announced by the Prime Minister on 8 July 2011 have been incorporated into the Australian Renewable Energy Agency (ARENA). This new agency, established on 1 July 2012 as an independent statutory authority under the Australian Renewable Energy Agency Act 2011, comes under the Resources, Energy and Tourism portfolio.

Annual reports referred to the committee

1.17 The committee reported on annual reports tabled in the Senate by 31 October 2012 in its report Annual reports (No. 1 of 2013) tabled on 14 March 2013, which examined 36 annual reports.

1.18 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. Accordingly, this report examines the annual reports 2011-12 of the following seven bodies:

Prescribed agencies under the FMA Act

• Australian Prudential Regulation Authority;

Statutory bodies/authorities not under the FMA Act

• Australian Centre for Renewable Energy Board (independent statutory

advisory board);

• Innovation Australia (independent statutory body);

Non-statutory bodies

• Foreign Investment Review Board;

6 Journals of the Senate, No. 145, 15 May 2013, p. 3929.

44

Commonwealth authorities (under the CAC Act)

• Australian National University (statutory authority);

Commonwealth companies (under the CAC Act)

• IIF Investments Pty Limited; and

Other companies, limited by shares

• Snowy Hydro Limited (statutory corporation).

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

Additional reports referred to the committee

1.20 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 by the terms of the Standing Order:

• Australian Nuclear Science and Technology Organisation Act—Statement

under section 7—Disclosure of the Australian Nuclear Science and Technology Organisation's interest in a company, tabled 19 November 2012;

• Australian Research Council—Strategic Plan 2012-13 to 2014-15, tabled

5 February 2013;

• Department of Finance and Deregulation—Consolidated Financial Statements

for the year ended 30 June 2012, tabled 5 February 2013;

• Finance—Advances provided under the annual Appropriation Acts—Report

for 2011-12, tabled 5 February 2013;

• Tax expenditures statement 2012, tabled 5 February 2013;

• Productivity Commission—Inquiry Report No. 59—Barriers to Effective

Climate Change Adaptation, dated 19 September 2012, tabled 19 March 2013;

• Australian Government response to the Productivity Commission report:

Barriers to Effective Climate Change Adaptation, dated March 2013, tabled 19 March 2013;

• Productivity Commission—Report No. 61—Compulsory licensing of patents,

dated 28 March 2013, tabled 18 June 2013;

• Australian Research Council—Strategic plan 2013-14 to 2015-16, tabled 25

June;

• Department of Resources, Energy and Tourism—Energy use in the Australian

Government's operations—Reports for 2010-11 and 2011-12; tabled 26 June 2013; and

45

• Productivity Commission—Report No. 62—Electricity network regulatory

frameworks—Volume 1 and Volume 2, dated 9 April 2013, Government response, dated June 2013, tabled 26 June 2013.

Timeliness

1.21 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 2012.

Departments and FMA Act entities

1.22 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

1.23 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.

1.24 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.

1.25 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.

46

1.26 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

1.27 The committee notes in particular that the Australian National University 2012 annual report was tabled in the House of Representatives on 27 June 2013 but was tabled in the Senate on 13 November 2013.

Other entities

1.28 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.

Remarks made in the Senate

1.29 Senate Standing Order 25(20)(d) directs the committee to take into account remarks made in the Senate when considering annual reports.

1.30 One annual report considered in this report was the subject of debate in the Senate chamber:

• On 27 February 2013, Senator Fiona Nash referred to the Foreign Investment Review Board's (FIRB) 2011-12 annual report. In her speech, Senator Nash commented on the level of foreign investment in Australian agricultural land and businesses, and the increase in foreign proposals and approvals in that year.8 Senator Nash again referred to the FIRB annual report in the same context on 28 February 2013 during Questions without notice.9

Other comments on reports

1.31 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

7 Department of the Prime Minister and Cabinet, Requirements for Annual Reports, 28 June 2012, p. 2; and Guidelines for the Presentation of Government Documents to the Parliament (Including Government Responses to Committee Reports, Ministerial Statements, Annual Reports and Other Instruments), December 2012, paragraph 4.8.

8 Senate Hansard, 27 February 2013, pp 1177-1178.

9 Senate Hansard, 28 February 2013, pp 1322-1323.

47

committee considers that the reports it has examined are generally 'apparently satisfactory'.

1.32 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

1.33 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 and decisions of administrative tribunals that have had, or may have, a significant impact on the operations of the department; and

(b) reports on the operations of the department by the Auditor-General (other than the report on financial statements), a Parliamentary committee or the Commonwealth Ombudsman.10

1.34 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.

1.35 During the reporting period, Australian Prudential Regulation Authority (APRA) included in its annual report information relating to two performance audits by the Australian National Audit Office (ANAO) in which APRA was a respondent —Administration of Grant Reporting Obligations and Development and Approval of Grant Program Guidelines.11 APRA also noted the three outstanding investigations from 2010/11 by the Commonwealth Ombudsman relating to applications for the

10 Department of the Prime Minister and Cabinet, Requirements for Annual Reports, 28 June 2012, pp 9-10. Clause 11 of Schedule 1 of the Commonwealth Authorities and Companies (Report of Operations) Orders 2008 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.

11 Australian Prudential Regulation Authority Annual Report 2012, p. 158.

48

early release of superannuation benefits will be reported on by the Department of Human Services as the early release function has been transferred to them.12

1.36 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'.13

Compliance indices or lists of requirements

1.37 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.

1.38 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.

12 Australian Prudential Regulation Authority Annual Report 2012, p. 158.

13 Department of the Prime Minister and Cabinet, Requirements for Annual Reports, 28 June 2012, paragraph 7.

49

50

Chapter 2

Individual 2011-2012 Annual Reports

Reports under the Industry, Innovation, Science, Research and Tertiary Education portfolio

Australian National University—annual report 2012

Reporting requirements

2.2 The committee considers that the Australian National University (ANU) has met its reporting requirements under the CAC Act and the Australian National University Act 1991.

2.3 The committee notes that the ANU's annual report was not tabled in the House of Representatives until 27 June 2013 and was not tabled in or presented to the Senate until 13 November 2013, after the commencement of the forty-fourth Parliament.

2.4 Although the ANU's annual report contains an index, the committee suggests that a compliance index be added to enhance the report's accessibility.

2.5 The committee is pleased with the annual report's inclusion of some amended statutory reporting requirements on such areas as work health and safety, environmental performance and freedom of information.1

2.6 In relation to disability reporting, the committee commends ANU for its inclusion of a comprehensive section detailing its commitment to providing access to staff and students, and its collaboration with stakeholders in the wider ACT community. In 2012, it successfully ran the pilot program 'Participation Assistants for Students with Asperger's Syndrome' to assist students with Asperger's Syndrome in their integration into university studies and life.2

Operational matters

2.7 The ANU topped the nation in the Commonwealth's Excellence in Research for Australia ratings and has been awarded nearly $37 million by the Australian Research Council to fund one hundred projects spanning a variety of disciplines.3

1 Australian National University Annual Report 2012, pp 153-154.

2 Australian National University Annual Report 2012, pp 72-73.

3 Australian National University Annual Report 2012, p. 9.

51

2.8 The ANU also further demonstrated its commitment to public policy through the renaming and expansion of the Crawford School of Public Policy and the establishment of the ANU Public Policy Fellows Program.4

IIF Investments Pty Limited—annual report 2011-12

Reporting requirements

2.9 The committee considers that IIF Investments Pty Ltd as a wholly owned Commonwealth company limited by shares has met its overall reporting requirements under the Corporations Act 2001 and the CAC Act, including the requirements set out in the Commonwealth Companies (Annual Reporting) Orders 2011.

2.10 The annual report does not contain a compliance index, which as noted by the committee in previous years, was also the case with 2009-10 and 2010-11 annual reports. A compliance index would be a useful addition as it would enable readers to better navigate the report, particularly given that the company is required to comply with two separate acts.

Operational matters

2.11 IIF Investments Pty Ltd is the only company remaining from the original five IIF companies established as a mechanism to deliver the government's capital into the venture capital funds licensed under Rounds 1 and 2 of the Innovation Investment

Fund, the Pre-Seed Fund and the Renewable Energy Equity Fund programs.5 The other four programs were voluntarily deregistered through the Australian Investments and Securities Commission in 2010 and 2011.6 The board has been advised that changing the arrangements for funds invested by IIF Investments Pty Ltd may have unintended tax consequences and as such, both the board and department have concluded that there is no choice but to maintain IIF Investments Pty Ltd and it is unlikely that the company will be wound up.7

Innovation Australia—annual report 2011-12

Reporting requirements

2.12 The committee considers that Innovation Australia has met its reporting requirements under the Industry Research and Development Act 1986.

4 Australian National University Annual Report 2012, p. 35.

5 IIF Investments Pty Limited 2011-12 Annual Report, p. 3.

6 IIF Investments Pty Limited 2011-12 Annual Report, p. 8.

7 IIF Investments Pty Limited 2011-12 Annual Report, p. 4.

52

2.13 The committee notes that again (as in the 2009-10 and 2010-11 annual reports) there is no date on the letter of transmittal. The letter should be dated in full on the day the signatory approves the final text of the report.

2.14 The committee also notes that although the report indicates that it was prepared in accordance with identified sections of the Industry Research and Development Act 1986 data, it would be better if this information were set out in the form of a compliance index.

Operational matters

2.15 During the reporting period 2011-12, Innovation Australia and its predecessor, the Industry Research and Development Board, celebrated its 25th anniversary with the publication Twenty-five years of Innovation in Australia. The publication recognised the important role innovation has played in the development of new industries and a better quality of life in Australia.8 Functions in Brisbane and Perth were held to raise awareness of the role of innovation in lifting productivity and economic growth in Australia. A showcase event in Brisbane, Australia: People Making the Difference, highlighted the benefits of investment in innovation for society. In Perth, Innovation Australia met with business leaders and key industry stakeholders and discussed Australian Government initiatives that encourage innovation.9

2.16 Innovation Australian worked in partnership with DIISRTE to design three new programs under the government's Clean Energy Future plan; the Clean Technology Investment Program, the Clean Technology Food and Foundries Investment Program and the Clean Technology Innovation Program.10

2.17 On 24 August 2011, the Tax Laws Amendment (Research and Development) Bill 2010 was passed in Parliament. The R&D Tax Incentive replaced the R&D Tax Concession for income years commencing on or after 1 July 2012.11

2.18 Other highlights and developments mentioned in the report included: Innovation Australia's continued advocacy role and its international collaboration with representatives from governments and private organisations12; Commercialisation Australia Board's approval of 185 applications with a total value of $71.23 million to support talented researchers, entrepreneurs and firms to build sustainable businesses

8 Innovation Australia Annual Report 2011-12, p. 2.

9 Innovation Australia Annual Report 2011-12, p. 5.

10 Innovation Australia Annual Report 2011-12, p. 2.

11 Innovation Australia Annual Report 2011-12, p. 4.

12 Innovation Australia Annual Report 2011-12, pp 2-6.

53

by converting innovative intellectual property into successful commercial ventures13; and staffing changes, including new appointments to the Innovation Australia Board.14

Reports under the Resources, Energy and Tourism portfolio

Australian Centre for Renewable Energy Board—annual report 2011-12

Reporting requirements

2.19 The committee considers that the final Australian Centre for Renewable Energy (ACRE) Board report, prepared by the Australian Renewable Energy Agency (ARENA), meets the requirements set out in Section 26 of the Australian Renewable Energy Agency (Consequential Amendments and Transitional Provisions) Act 2011.

2.20 The committee notes that the report does not contain a compliance index.

Operational matters

2.21 Due to the government's announcement on 10 July 2011 that it would establish ARENA on 1 July 2012 as part of the Clean Energy Future Plan, a significant portion of the ACRE Board's work during the 2011-12 year comprised preparing various programs and projects for potential transfer to ARENA.15 The ACRE Board took away several lessons from this experience and recommended that

ARENA continue to invest time early on in strategy and development and undertake widespread consultation prior to implementing new programs.16

Snowy Hydro Ltd —Consolidated financial report for the reporting period 3 July 2011 to 30 June 2012

Reporting requirements

2.22 The committee considers that Snowy Hydro Ltd has met its requirements under the Corporations Act 2001 and the Snowy Hydro Corporatisation Act 1997,

noting that as a statutory corporation and a company limited by shares it is not subject to the PM&C guidelines for annual reports.

2.23 The committee notes there is no date on the letter of transmittal. The letter should be dated in full on the day the signatory approves the final text of the report.

13 Innovation Australia Annual Report 2011-12, pp 3 and 19.

14 Innovation Australia Annual Report 2011-12, p. 7.

15 Innovation Australia Annual Report 2011-12, p. 3.

16 Australian Centre for Renewable Energy Board Annual Report 2011-12, p. 12.

54

Operational matters

2.24 The report outlines the 2011-12 financial performance of Snowy Hydro Ltd and that of its active wholly owned controlled entities; Red Energy Pty Ltd, Valley Power Pty Ltd, and various inactive subsidiaries. The consolidated entity owns, manages and maintains the Snowy Mountains Hydro-scheme and two power stations in Victoria, and for the reporting period ending 30 June 2012, the net profit after tax was $258.8 million.17

Reports under the Treasury portfolio

Australian Prudential Regulation Authority — annual report 2011-12

Reporting requirements

2.25 The committee considers that the Australian Prudential Regulation Authority (APRA) has met its reporting requirements under the FMA Act and the Australian Prudential Regulation Authority Act 1998.

2.26 The committee is pleased to note APRA's inclusion of statutory reporting information covering work health and safety, freedom of information, environmental performance and advertising and market research.18

2.27 In relation to consultancy reporting, APRA noted that it engages consultants where it lacks specialist expertise or when independent research, review or assessment is required, and it takes into account the skills and resources available in-house prior to engaging external expertise. During the reporting period, APRA'S total expenditure on consultancies was $3.11 million. Of those, 13 were ongoing consultancy contracts valued at $2.05 million and 35 were new consultancy contracts valued at $1.06 million.19

2.28 The committee commends APRA on the inclusion of a comprehensive compliance index.

Operational matters

2.29 In 2011-12 APRA participated in the second review of Australia under the International Monetary Fund's Financial Sector Assessment Program (FSAP), which evaluates the strength and potential vulnerabilities of a country's financial system and regulatory architecture. Although the FSAP report had not yet been finalised at the

17 Snowy Hydro Limited - Consolidated financial report for the reporting period 3 July 2011 to 30 June 2012, p. 4.

18 Australian Prudential Regulation Authority Annual Report 2012, pp 54-57.

19 Australian Prudential Regulation Authority Annual Report 2012, p. 159.

55

time of the printing of the annual report, APRA noted that preliminary indications suggested a strong endorsement.20

2.30 APRA welcomed the new four year funding arrangement to begin in 2012-13, noting that it would ensure APRA's continued capacity to supervise the Australian financial system.21

Foreign Investments Review Board — annual report 2011-12

Reporting requirements

2.31 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.

Operational matters

2.32 In 2011-12, FIRB examined a range of high profile investment applications, including in the resources sector which made up the majority of business applications, continuing the trend from previous years.22 In relation to investment application approvals by sector, the real estate sector passed the mineral exploration and development sector as the largest industry sector by value of approvals.23

2.33 The United States of America was again the largest source of proposed foreign investment, followed by the United Kingdom, China, Japan and Canada.24 FIRB welcomed the announcement of a Commonwealth foreign ownership register for agricultural land and noted it was assisting the working group established to develop the register.25

2.34 As noted in Chapter 1 of this report, FIRB's annual report was the subject of discussion in the Senate on 27 and 28 February 2013.

Senator David Bushby

Chair

20 Australian Prudential Regulation Authority Annual Report 2012, p. 12.

21 Australian Prudential Regulation Authority Annual Report 2012, p. 13.

22 Foreign Investment Review Board Annual Report 2011-12, p. iii.

23 Foreign Investment Review Board Annual Report 2011-12, pp 22-23.

24 Foreign Investment Review Board Annual Report 2011-12, p. 29.

25 Foreign Investment Review Board Annual Report 2011-12, p. iii.

56

Appendix 1

Industry, Innovation, Science, Research and Tertiary Education portfolio

List of annual reports tabled in the Senate in the period 1 November 2012 - 30 April 2013 and later

Reporting body Legislation Date of

transmittal letter

Date sent to Minister

Date received by Minister

Date tabled/ presented*

Australian National University

Australian National University Act 1991

Commonwealth Authorities and Companies Act 1997

22 March 12 Apr 8 May Senate

13 Nov

HoR 27 June

IIF Investments Pty Limited

Corporations Act 2001

Commonwealth Authorities and Companies Act 1997

30 Oct 31 Oct 31 Oct Senate

28 Nov

HoR 28 Nov

Innovation Australia Industry Research and Development

Act 1986

Date not provided

27 Feb 28 Feb Senate

19 March

HoR 18 March

57

58

Appendix 2

Resources, Energy and Tourism Portfolio

List of annual reports tabled in the Senate in the period 1 November 2012 - 30 April 2013 and later

Reporting body

Legislation Date of

transmittal letter

Date sent to Minister

Date received by Minister

Date tabled/ presented*

Australian Centre for Renewable Energy Board

Australian Renewable Energy Agency (Consequential Amendments and Transitional Provisions) Act 2011

29 Nov 6 Dec 7 Dec Senate

5 Feb (11 Dec*)

HoR 5 Feb

Snowy Hydro Limited - Consolidated Financial Report for the reporting period 3 July 2011 to 30 June 2012

Snowy Hydro Corporatisation Act 1997

Corporations Act 2001

Letter not provided 6 March 6 March Senate

20 March

HoR 20 March

59

60

Appendix 3

Treasury portfolio

List of annual reports tabled in the Senate in the period 1 November 2012 - 30 April 2013 and later

Reporting body

Legislation Date of

transmittal letter

Date sent to Minister

Date received by Minister

Date tabled/ presented*

Australian Prudential Regulation Authority

Australian Prudential Regulation Authority Act 1998

Financial Management and Accountability Act 1997

12 Oct 26 Oct 26 Oct Senate

19 Nov (9 Nov*)

HoR 26 Nov

Foreign Investments Review Board

Foreign Acquisitions and Takeovers Act 1975

20 Dec 17 Jan 17 Jan Senate

25 Feb (22 Feb*)

HoR 14 March

61

62

Appendix 4

Industry, Innovation, Science, Research and Tertiary Education portfolio structure†

Minister for Tertiary Education, Skills, Science and Research1 Senator the Hon Chris Evans

Minister for Industry and Innovation2 The Hon Greg Combet AM MP

Department of Industry, Innovation, Science, Research and Tertiary Education Secretary: Dr Don Russell

Agency - Australian Nuclear Science and Technology Organisation (ANSTO) Chief Executive Officer: Dr Adi Paterson

Agency - Australian Institute of Aboriginal and Torres Strait Islander Studies (AIATSIS) Principal (CEO): Mr Russell Taylor

Agency - IP Australia Director General: Mr Philip Noonan

Agency - Australian Research Council (ARC) A/g Chief Executive Officer: Ms Leanne Harvey

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 - Tertiary Education Quality and Standards Agency (TEQSA) Chief Commissioner: Dr Carol Nicoll

2

Minister Combet is also the Minister for Climate Change and Energy Efficiency 3

Minister O’Connor is also the Minister for Housing and the Minister for Homelessness

4 Senator Lundy is also the Minister for Sport and the Minister for Multicultural Affairs 5 Parliamentary Secretary Dreyfus is also the Cabinet Secretary and Parliamentary Secretary for Climate Change and Energy Efficiency

1 Senator Evans is also Leader of the Government in the Senate

Parliamentary Secretary for Higher Education and Skills The Hon Sharon Bird MP

Parliamentary Secretary for Industry and Innovation5 The Hon Mark Dreyfus QC MP

Minister Assisting for Industry and Innovation4 Senator the Hon Kate Lundy

Minister for Small Business3 The Hon Brendan O’Connor MP

† The portfolio structure above has since changed and is no longer current.

Source: Portfolio Additional Budget Statements 2012-13, Industry, Innovation, Science, Research and Tertiary Education portfolio, p. 4.

63

64

Appendix 5

Resources, Energy and Tourism portfolio structure and outcomes†

† The portfolio structure above has since changed and is no longer current.

Source: Portfolio Additional Budget Statements 2012-13, Resources, Energy and Tourism portfolio, p. 4.

Portfolio Minister The Hon Martin Ferguson AM MP

Minister for Resources and Energy Minister for Tourism

Department of Resources, Energy and Tourism Portfolio Secretary Mr Drew Clarke Outcome 1: The improved strength, competitiveness and sustainability of the resources, energy and tourism industries to

enhance Australia's prosperity through implementation of government policy and programs.

Geoscience Australia Chief Executive Officer: Dr Chris Pigram Outcome 1: Informed government, industry and community decisions on the

economic, social and environmental management of the nation's natural resources through enabling access to geoscientific and spatial information.

Tourism Australia Managing Director: Mr Andrew McEvoy Outcome 1: Increase demand for Australia as a destination, strengthen the

travel distribution system, and contribute to the development of a sustainable tourism industry through consumer marketing, trade development and

research activities.

Australian Renewable Energy Agency Chief Executive Officer: Mr Ivor Frischknecht Outcome 1: Support improvements in the competitiveness of renewable energy and related technologies and the supply of

renewables energy by administering financial assistance, developing analysis and advice about and sharing information and knowledge with regard to, renewable energy and related technologies.

National Offshore Petroleum Safety and Environmental Management Authority Chief Executive Officer

Ms Jane Cutler

Outcome 1: Promote and enforce the effective management of risks to the workforce, the environment and the structural integrity of facilities, wells and well-related equipment of the Australian offshore petroleum and greenhouse gas

storage industries through regulatory oversight.

Australian Solar Institute Executive Director: Mr Mark Twidell Outcome 1: Encourage innovation and

cost effective developments in solar energy technologies to accelerate commercial deployment through knowledge building and collaborative

research, development and support for Australian industries and research institutions.

65

66

Appendix 6

Treasury portfolio structure and outcomes†

67

† The portfolio structure above has since changed and is no longer current.

Source: Portfolio Additional Budget Statements 2012-13, Treasury portfolio, pp 4-5.

68

The Senate

Education and Employment

Legislation Committee

Annual reports (No. 2 of 2013)

December 2013

69

© Commonwealth of Australia 2013

ISBN 978-1-74229-911-2

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

70

MEMBERSHIP OF THE COMMITTEE

Members

Senator Bridget McKenzie, Chair, Nat, Vic.

Senator Sue Lines, Deputy Chair, ALP, WA

Senator Chris Back, LP, WA

Senator Lee Rhiannon, AG, NSW

Senator Dean Smith, LP, WA

Senator the Mehmet Tillem, ALP, Vic.

Substitute Members

Senator Helen Kroger, LP, VIC

to replace Senator Dean Smith, (from 22 November 2013)

Senator Anne Ruston, LP, SA

to replace Senator Chris Back (from 15 November 2013)

Secretariat

Ms Julia Agostino, Secretary (from 25 November 2013)

Ms Bonnie Allan, Acting Secretary (until 22 November 2013)

Mr Gerry McInally, Principal Research Officer

Mr Josh See, Senior Research Officer

Mr Isaac Overton, Research Officer

Ms Sarah Bainbridge, Acting Research Officer (19 November to 11 December 2013)

PO Box 6100 Ph:02 6277 3521

Parliament House Fax: 02 6277 5706

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

71

72

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

Safe Work Australia ............................................................................................... 5

Fair Work Building and Construction .................................................................... 6

Coal Mining Industry (Long Service Leave Funding) Corporation - Report for 2011-12 .................................................................................................................. 7

Comments made in the Senate ............................................................................... 8

Bodies not presenting annual reports to the Senate ................................................ 9

APPENDIX 1 ....................................................................................................... 9

Allocation of annual reports to the committee ...................................................... 9

APPENDIX 2 ..................................................................................................... 11

Compliance table of annual reports referred ...................................................... 11

APPENDIX 3 ..................................................................................................... 15

Administrative Arrangements Order for the Department of Education, Employment and Workplace Relations ................................................................ 15

73

74

CHAPTER 1 Introduction

1.1 This is the Senate Education and Employment Legislation Committee's (the committee) second report on annual reports for 2013. It provides an overview of the committee's examination of annual reports for the 2011-12 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.1

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

1 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.

75

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 2012 and 30 April 2013. The committee examined the following reports:

Statutory authorities/bodies

• Safe Work Australia - Report for 2011-12

• Fair Work Building and Construction - Report for 2011-12

Commonwealth companies under the CAC Act

• Coal Mining Industry (Long Service Leave Funding) Corporation - Report for 2011-12

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 2010

• Fair Work Act 2009—Fair Work Australia—General Manager's reports for the

period 2009-12:

- Enterprise agreement-making in Australia under the Fair Work Act 2009 (Cth), dated November 2012;

- Extent to which individual flexibility arrangements are agreed to and the content of those arrangements, dated November 2012;

- Operation of the first three years of the Fair Work Act 2009 (Cth) unfair dismissal system, dated December 2012; and

- Operation of the provisions of the National Employment Standards relating to requests for flexible working arrangements and extensions of unpaid parental leave, dated November 2012.

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.

76

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 FMA Act Bodies, Department of Prime Minister and Cabinet, revised June 2013;

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

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.2 Those agencies reporting under the Commonwealth Authorities and Companies Act 1997 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.3

1.11 The committee recognises that some agencies are required to comply with other timeframes stipulated in their enabling legislation, such as '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.

General comments on reports 1.12 The committee has found, under the terms of standing order 25(20), that the reports described here are apparently satisfactory except for timeliness in some cases. The committee notes that the Safe Work Australia and Coal Mining Industry (Long Service Leave Funding) Corporation reports were not submitted in a timely manner.

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

3 Commonwealth Authorities and Companies Act 1997, section 9.

77

78

CHAPTER 2 Review of annual reports

2.1 This chapter examines selected annual reports in greater detail, and provides the Senate with information that may be of particular interest. The reports of Safe Work Australia, Fair Work Building and Construction and the Coal Mining industry (Long Service Leave Funding) Corporation are discussed in this chapter.

Safe Work Australia 2.2 Safe Work Australia (SWA) was established as an independent statutory agency in 2009 with responsibility for developing national policy on work health and safety (WHS) and workers' compensation. SWA's activities include:

• developing model WHS laws;

• research, collection, analysis and reporting of data relating to WHS issues; and

• coordinating efforts between community, WHS authorities and industry groups and unions to improve WHS in Australian workplaces.

2.3 The report outlined a number of achievements and landmarks for SWA during the 2011-12 financial year. Achievements of note included national mine safety reform through the development of model WHS regulations for mining and the commencement of the Australian Work Health and Safety Strategy 2012-22 following on from the completion of the National OHS Strategy 2002-12. More broadly, the report noted that over 60 per cent of the Australian workforce is now under the same WHS protections.1 In addition, the establishment of the Safety Ambassador of the Year Award, as part of the 2011 Safe Work Australia Week, resulted in 500 workplace leaders from across the nation become Safety Ambassadors.2

2.4 SWA also maintained an international presence for Australia in the sector through organisations like the United Nations Sub-Committee of Experts on the Globally Harmonised System; the International Organisation for Standardisation Nanotechnology Technical Committee; the Organisation for Economic Co-operation and Development Working Party for Manufactured Nanomaterials; and the World Health Organisation and the International Labour Organisation.3

2.5 Key items on SWA's agenda for the coming years includes the continual oversight and improvement of SWAs business processes and raising WHS awareness in the wider community - particularly in the agriculture, construction and road transport industries.4

1 Safe Work Australia, Annual Report 2011-12, pp 6-8. 2 Safe Work Australia, Annual Report 2011-12, p. 7. 3

Safe Work Australia, Annual Report 2011-12, pp 6-8. 4 Safe Work Australia, Annual Report 2011-12, p. 8.

79

2.6 SWA also reported that:

Safe Work Australia does not have any administered funding and there were no new measures sought or provided in the 2011-12 financial year. The organisation had a full year operating loss for 2011-12 and this continued to absorb the remaining surplus from 2009-10. There are plans in place to make use of the remaining surplus in 2012-13 while being very mindful of any impact on the out-year budgets, particularly in terms of staffing levels.

The 2011-12 appropriation was reduced as a result of Operation Sunlight, which seeks to improve the openness and transparency of public sector budgetary and financial management and to promote good governance practices.5

2.7 This annual report is well presented and easily navigated and the committee considers that this report has fulfilled all requirements. The committee encourages timeliness in the presentation of annual reports and notes that this annual report was tabled on 26 November 2013.

Fair Work Building and Construction 2.8 The Office of the Fair Work Building Industry Inspectorate (operating as Fair Work Building and Construction (FWBC)) is an independent statutory agency established to regulate workplace relations laws in the building and construction industry. Activities that are undertaken by FWBC in this role include public education, providing advice in the sector and ensuring compliance with workplace relations laws by industry in the sector.6

2.9 Prior to 1 June 2012, the Office of the Australian Building and Construction Commission (ABCC) operated as the lead agency for monitoring and promoting appropriate standards of conduct across the building and construction industry. After the ABCC was abolished on 31 May 2012, it was replaced by FWBC.7 FWBC underwent significant changes during the 2011-12 financial year. The report is divided into two parts - the first covering the activities of the ABCC from 1 July 2011 to 31 May 2012, and the second covering FWBC from 1 June 2012 to the end of the 2011-12 financial year.

2.10 Commenting on these changes, FWBC Chief Executive Leigh Johns noted that:

While FWBC is a new agency, its functions, powers and objectives are similar to predecessor agencies which regulated compliance with workplace laws in the building and construction industry… In its first month, FWBC saw a successful transition of some 150 staff from the former agency, the adoption of a new brand, and an energetic effort by all staff to connect with industry participants on new terms.8

5 Safe Work Australia, Annual Report 2011-12, p. 68. 6 Fair Work Building and Construction, Annual Report 2011-12, p. 14. 7

Fair Work Building and Construction, Annual Report 2011-12, pp 127-9. 8 Fair Work Building and Construction, Annual Report 2011-12, p. 8.

80

2.11 As well as reporting on activity during its one month of operation, the FWBC Annual Report identifies the organisation's focus on six key areas:

• unprotected industrial action;

• freedom of association;

• coercion;

• right of entry;

• wage and entitlements; and

• sham contracting.

2.12 In addition to this, the report highlights FWBC's intention to provide evidence-based advice concerning productivity in the sector.9

2.13 During the reporting period, the Annual Report notes that FWBC received 179 enquiries with 12 per cent related to the National Code and 11 per cent related to wages and entitlements. Ninety-seven per cent of enquiries were responded to within one day, with the remainder addressed within three working days. Approximately 12 per cent of enquiries led to an investigation.10

2.14 The Sham Contracting Inquiry was a significant body of work started by the ABCC and continued by FWBC. Sham contracting occurs when people who should be dealt with as employees are instead treated as independent contractors - thus missing out on legitimate entitlements such as annual leave.11 The Sham Contracting Report was released in November 2011, and FWBC has now assumed responsibility for implementing the recommendations arising from the report. As a result of the report, further research to gather reliable data on sham contracting has been undertaken to inform policy development on this issue.12

2.15 This annual report is well presented and easily navigated and the committee considers that this report has fulfilled all requirements.

Coal Mining Industry (Long Service Leave Funding) Corporation - Report for 2011-12 2.16 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.

9 Fair Work Building and Construction, Annual Report 2011-12, pp 10—11. 10 Fair Work Building and Construction, Annual Report 2011-12, pp 26—7. 11

Fair Work Building and Construction, Sham Contracting Inquiry. http://www.fwbc.gov.au/sham-contracting-inquiry/ (accessed 21 August 2013). 12 Fair Work Building and Construction, Annual Report 2011-12, p. 30.

81

2.17 During the 2011-12 financial year, the Coal Mining Industry (Long Service Leave) Legislation Amendment Act 2011 came into effect which implemented proposals made by an industry working party. These proposals reformed the portable long service leave arrangements in the black coal mining industry.13

2.18 The Board of the Corporation reported its expectation that the fund will record modest and sustainable investment returns in the long term and noted that the fund recorded a return on investment of assets of 4.35 per cent for the 2011-12 financial year.14 However, the report also notes that, over the financial years between 2008-2012, the annual average return has been 3.18 per cent with an average real rate of -0.79 per cent.15

2.19 The committee notes that this report does not include information on the corporation's environmental performance, disability strategy or its occupational health and safety strategy. In addition, certain requirements of the Commonwealth Companies (Annual Reporting) Orders 2011 have also been omitted. These

requirements include a glossary, information on the qualifications and experience of directors in the company and an index identifying where information required under the Corporations Act 2001, the Commonwealth Authorities and Companies Act 1997 and the Commonwealth Companies (Annual Reporting) Orders 2011.

2.20 The committee notes that these omissions were raised by the committee in relation to the corporation's previous annual report.16 The committee suggests that the corporation should take action to address these shortcomings in the next report. It also notes that this report was tabled on 26 February 2013.

Comments made in the Senate 2.21 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.

13 Coal Mining Industry (Long Service Leave Funding) Corporation, Annual Report 2011-12, p. 2. 14 Coal Mining Industry (Long Service Leave Funding) Corporation, Annual Report 2011-12, p. 7. 15

Coal Mining Industry (Long Service Leave Funding) Corporation, Annual Report 2011-12, p. 9. 16 Education, Employment and Workplace Relations Legislation Committee, Annual Reports (No. 2 of 2012), September 2012, p. 8.

82

Bodies not presenting annual reports to the Senate 2.22 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

83

84

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 [Teaching

Australia]

• Department of Education, Employment and Workplace Relations

• Indigenous Education (Targeted Assistance) Act 2000—Indigenous education

and training—National report to Parliament • Schools Assistance (Learning Together-Achievement Through Choice and

Opportunity) Act 2004--Report on financial assistance granted to each state in respect of • Schools Assistance Act 2008 - Report on financial assistance granted to each

state in respect of

Employment and Workplace Relations

• Air Passenger Ticket Levy (Collection) Act 2001

• Coal Mining Industry (Long Service Leave Funding) Corporation

• Comcare Australia

• Defence Force Remuneration Tribunal 1

• Department of Education, Employment and Workplace Relations

• Fair Work Australia

• Fair Work Ombudsman

• Office of the Fair Work Building Industry Inspectorate

• Remuneration Tribunal

• Safe Work Australia

• Safety, Rehabilitation and Compensation Commission

• Seafarers Safety, Rehabilitation and Compensation Authority (Seacare)

1 Forwarded to the Foreign Affairs, Defence and Trade Committee as well.

85

86

APPENDIX 2

Compliance table of annual reports referred

List of annual reports referred by the Senate to the committee during the period 1 November 2012 to 30 April 2013

Education, Employment portfolio

Body/Report Enabling legislation and timeliness Letter of Transmittal

Date

Submitted to/Received by Minister

Presented out of session Tabled Timeliness

Safe Work Australia Safe Work Australia Act 2008 3/10/2012 29/10/2012 Reps:

26/11/2012

Senate: 27/11/2012

Late

Fair Work Building and Construction

Fair Work (Building Industry) Act 2012 2/10/2012 4/10/2012 Reps:

31/10/2012

Senate: 20/11/2012

On time

Coal Mining Industry (Long Service Leave Funding) Corporation

Coal Mining Industry (Long Service Leave) Administration Act 1992

4/10/2012 10/10/2012 Reps:

7/02/2013

Senate: 26/02/2013

Late

87

88

APPENDIX 3

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

Extract from the Administrative Arrangements Order, made on 9 February 2012. 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 schools, vocational, higher education and Indigenous 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

• 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

• Early childhood and childcare policy and programs

• Co-ordination of early childhood development policy and responsibilities, including Indigenous early childhood development

89

90

The Senate

Environment and Communications Legislation Committee

Annual reports (No. 2 of 2013)

December 2013

91

© Commonwealth of Australia 2013

ISBN 978-1-74229-912-9

Committee Address Environment and Communications Legislation Committee PO Box 6100 Parliament House Canberra ACT 2600

Tel: 02 6277 3526 Fax: 02 6277 5818 Email: ec.sen@aph.gov.au Internet: www.aph.gov.au/Parliamentary_Business/Committees/Senate/Environment_and_Communications/

Annual_Reports

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

92

Committee membership

Members

Senator John Williams (Chair) NATS, New South Wales

Senator Anne Urquhart (Deputy Chair) ALP, Tasmania

Senator David Fawcett LP, South Australia

Senator Louise Pratt ALP, Western Australia

Senator Anne Ruston LP, South Australia

Senator Larissa Waters AG, Queensland

Committee Secretariat

Ms Christine McDonald, Secretary

Ms Jacquie Hawkins, Research Officer

93

94

Contents

Committee membership iii

Report to the Senate 1

Introduction 1

Annual reporting requirements 1

Apparently satisfactory 2

Purpose of annual reports 2

Reports referred to the committee 3

Remarks made in the Senate 4

Timeliness 4

Comments on annual report 5

Bodies not presenting annual reports to the Senate 6

Summary 6

Appendix 1 - Annual reports referred to the committee 7

95

96

Report to the Senate

Introduction 1.1 By virtue of Senate Standing Order 25(20), the Senate refers to this committee for examination and report the annual reports of departments and agencies of the following three portfolios:

• Broadband, Communications and the Digital Economy;

• Climate Change; and

• Sustainability, Environment, Water, Population and Communities. 1

1.2 Standing Order 25(20) requires that the 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.

1.3 This report deals with reports tabled in the Senate during the period from 1 November 2012 to 30 April 2013 as required by standing order 25(20)(f).

Annual reporting requirements 1.4 On 28 June 2012, the Joint Committee of Public Accounts and Audit (JCPAA) approved revised Requirements for Annual Reports for Departments,

1 New Administrative Arrangements Orders of 18 September 2013 established the Department of the Environment and the Department of Communications. As part of machinery of government changes all climate change functions, excluding international matters, were placed within the Environment portfolio.

97

Executive Agencies and FMA Act Bodies (the Requirements) put forward by the Department of the Prime Minister and Cabinet. These Requirements apply to annual reports for the financial year ending on 30 June 2012.2 Under the Requirements, annual reports of departments and executive and prescribed agencies must be tabled by 31 October.3

1.5 Under section 48 of the Commonwealth Authorities and Companies Act 1997 (the CAC Act), the Minister for Finance outlines the annual reporting requirements for Commonwealth authorities and companies in the Commonwealth Authorities and Companies (Report of Operations) Orders. Section 9 of the CAC Act applies to Commonwealth authorities and specifies the deadline for the presentation of an annual report to the responsible minister. Section 36 of the CAC Act provides for the reporting obligations of Commonwealth companies.

1.6 Some statutory authorities are required to follow the Requirements if their head has the powers of a secretary as defined under the Public Service Act 1999.

1.7 Requirements 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 response was incorporated into the Senate Hansard of 8 December 1987.4

Apparently satisfactory 1.8 Standing order 25(20)(a) requires the committee to report to the Senate on whether annual reports are apparently satisfactory. In making this assessment, the committee considers such aspects as timeliness of presentation and compliance with relevant reporting requirements.

Purpose of annual reports 1.9 As stated in the Requirements, the primary purpose of annual reports is accountability, in particular to the Parliament. They inform the Parliament, other stakeholders, education and research institutions, the media and the general public about departments' performance in providing services. They are a key reference as well as an internal management document and form part of the historical record.5

2 Department of the Prime Minister and Cabinet, Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies, 28 June 2012, www.dpmc.gov.au/guidelines/index.cfm. The Requirements are prepared pursuant to subsections 63(2) and 70(2) of the Public Service Act 1999.

3 Department of the Prime Minister and Cabinet, Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies, 28 June 2012, p. 2.

4 Official Senate Hansard, 8 December 1987, pp 2643-45. 5 Department of the Prime Minister and Cabinet, Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies, 28 June 2012, p. 3.

98

Reports referred to the Committee 1.10 This report covers reports from the Broadband, Communications and the Digital Economy portfolio and from the Sustainability, Environment, Water, Population and Communities portfolio.

1.11 The following reports have been referred to the committee:

Prescribed agency Murray-Darling Basin Authority Annual Report 2011-2012

Statutory authorities Director of National Parks Annual Report 2011-12 National Environment Protection Council Annual Report 2011-2012 Sydney Harbour Federation Trust Annual Report 2011-2012

Reports on the operation of Acts Australian Broadcasting Corporation Equity and Diversity Annual Report 2011-2012 Australian Communications and Media Authority Communications Report 2011-2012 National Relay Service Performance report 2011-12 Australian Competition & Consumer Commission Telstra's compliance with the retail price control arrangements

2011-2012 Telecommunications Reports: Telecommunications competitive safeguards 2011-2012 Changes in prices paid for telecommunications services in Australia,

2011-2012 Australian Postal Corporation (Australia Post) Statement of Corporate Intent 2012/13-2015/16 Department of Broadband, Communications and the Digital Economy Report on Digital Television Transmission and Reception, February 2013 The operation of the Prohibition of Advertisements of Interactive

Gambling Services under the Interactive Gambling Act 2001, March 2013 Funding of Consumer Representation Grants Program to Telecommunications Annual Report 2011-2012, February 2013 Wet Tropics Management Authority Annual Report and State of the Wet Tropics Report 2011-2012.

1.12 Appendix 1 provides the following information for each of the reports received:

• the basis under which the organisation operates, for example, department or statutory authority;

• dates indicating the progressive stages in presentation of the annual reports; and

99

• the date each report was tabled in, or deemed to be presented to, the

Senate.

Remarks made in the Senate 1.13 As required under the terms of Standing Order 25(20)(d), the committee notes that none of the annual reports covered in this report was the subject of comment in the Senate.

Timeliness 1.14 The Requirements state that if a department is unable to meet the tabling deadline, the secretary may seek an extension of time to report under the provisions of subsections 34C(4)-(7) of the Acts Interpretation Act 1901, by advising the responsible minister of the reasons for the slippage. The responsible minister is to table this explanation in the Parliament on the next available sitting day.6

1.15 The committee notes the tabling on 28 November 2012, of an Extension Request, dated 31 October 2012, and the Minister's approval, for the late tabling of the Sydney Harbour Federation Trust Annual Report. It further notes the tabling on 19 March 2013 of the required Transmittal Letter which had been omitted from the Annual Report.

1.16 All reports reviewed in this report were tabled after 31 October. The terms of section 9 of the CAC Act require that annual reports be given to the responsible Minister by 15 October. As a matter of policy, they also apply to prescribed agencies under section 5 of the Financial Management and Accountability Act 1997 (the FMA Act). Under section 36 of the CAC Act, the content of annual reports of Commonwealth companies is based on reporting requirements under the Corporation Act 2001.7

1.17 The committee notes that the annual report of the Murray-Darling Basin Authority did not meet the reporting deadlines. The transmittal letter is dated 14 November 2012 and the report was submitted to, and received, by the Minister on 23 November 2012. It was tabled in the House of Representatives on 29 November 2012 and in the Senate on 5 February, thereby missing two deadlines: presenting to the Minister by 15 October and tabling by the 31 October.

1.18 The committee also notes that while the annual report of the Director of National Parks was presented to, and received by, the Minister on 11 October 2012, within the reporting timeline, it was presented out of session on 9 November and tabled in the Senate on 19 November 2012, thereby missing the tabling deadline.

1.19 In previous reports on annual reports, the committee has acknowledged advice from the National Environment Council that its enabling legislation requires it to

6 Department of the Prime Minister and Cabinet, Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies, 28 June 2012, p. 2.

7 Department of the Prime Minister and Cabinet, Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies, 28 June 2012, p. 1.

100

include reports by each member of the Council (that is Commonwealth, State and Territory ministers) in its annual report which leads to its report being tabled after 31 October each year.8

1.20 The Requirements state that 'where an agency's own legislation provides a timeframe for its annual report…that timeframe applies… However, it remains the Government's policy that all annual reports should be tabled by 31 October'.9 The Requirements continue:

If Senate Estimates is scheduled to occur prior to 31 October, it is best practice for annual reports to be tabled prior to those hearings.10

1.21 The committee encourages agencies to table annual reports in a timely manner.

Comments on annual report

Murray-Darling Basin Authority—Annual Report 2011-2012

1.22 The report records the impact of the highest summer rainfall events on record during the year and the floods which affected many towns and properties across the region. However, the rain also led to the replenishment of water storages and rejuvenated wetland and floodplain ecosystems.11

1.23 The report notes that the first draft Proposed Basin Plan was released on 28 November 2011. A five month consultation period followed during which the Authority 'met with over 170 groups and received almost 12,000 submissions on the draft plan'.12 As a result of this process, some 300 changes were made to the proposed plan and a revised version of it was presented to water ministers from the six Basin governments on 28 May 2012. The report flags that the proposed Basin Plan is scheduled to be finalised during the 2012-13 reporting year.13

Bodies not presenting annual reports to the Senate 1.24 Standing Order 25(20)(h) requires the committee to report to the Senate each year whether there are any bodies which do not present annual reports to the Senate which should present such reports. The committee is aware of no such body.

8 See, for example, Environment and Communications Legislation Committee, Annual Reports (No 2 of 2011), September 2012; Environment, Communications and the Arts Legislation Committee, Annual reports (No. 2 of 2009), September 2009; and Environment, Communications, Information Technology and the Arts Legislation Committee, Annual reports (No. 2 of 2002), September 2002, pp 28-29. 9 Department of the Prime Minister and Cabinet, Requirements for Annual Reports for

Departments, Executive Agencies and FMA Act Bodies, 28 June 2012, p. 2.

10 Department of the Prime Minister and Cabinet, Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies, 28 June 2012, p. 2.

11 Murray-Darling Basin Authority Annual Report 2011-12, p. 1.

12 Murray-Darling Basin Authority Annual Report 2011-12, p. 1.

13 Murray-Darling Basin Authority Annual Report 2011-12, p. 1.

101

Summary 1.25 Standing Order 25(20)(a) requires the committee to report to the Senate on whether annual reports are apparently satisfactory. In making this assessment, the committee considers such aspects as timeliness of presentation and compliance with relevant reporting requirements.

1.26 The committee finds that the annual reports referred to it have provided an appropriately comprehensive description of the activities of the reporting bodies and were of a commendably high standard of presentation. They generally met the requirements of the various guidelines that apply to them and were timely in their presentation to the Parliament, except where noted above.

1.27 Accordingly, the committee reports its finding that the annual reports referred to it for examination and tabled in the period under examination were apparently satisfactory.

Senator John Williams Chair

102

APPENDIX 1

Annual reports referred to the Environment and Communications Legislation Committee between 1 November 2012 and 30 April 2013

Broadband, Communications and the Digital Economy portfolio

Name Type14 Dates15 Tabled16

Australian Broadcasting Corporation Equity and Diversity Annual Report 2011-12

Report on the operation of an Act

A. -

B. 07/12/12 C. 07/12/12

05/02/13

Australian Communications and Media Authority Communications report 2011-12

Report on the operation of an Act

A. 12/11/12 B. 19/11/12 C. 19/11/12

05/02/13 (Received 06/12/12)

Australian Communications and Media Authority National Relay Service Performance report 2011-12

Report on the operation of an Act

A. 17/01/13 B. 26/02/13 C. 26/02/13

19/03/13

Australian Competition & Consumer Commission Telstra's compliance with the retail price control arrangements 2011-12

Report on the operation of an Act

A. -

B. 19/12/12 C. 21/12/12

06/02/13

Australian Competition & Consumer Commission Telecommunications competitive safeguards for 2011-12

Changes in prices paid for telecommunications services in Australia. 2011-12

Report on the operation of an Act

A. 19/12/12 B. 31/01/13 C. 31/01/13

26/02/13

Australian Postal Corporation Statement of Corporate Intent 2012/13-2015/16

Report on the operation of an Act

A. -

B. 12/10/12 C. 12/10/12

05/02/13

14 Statutory Authority includes statutory office-holders. 15 Dates shown are: A The date shown on a letter of transmittal printed with the annual report (if any) B Date submitted to the Minister, as recorded in the Senate's Order of Business (if any)

C Date received by the Minister, as recorded in the Senate's Order of Business (if any) 16 The date in parenthesis shows the date that the report was presented out of session to the President / Deputy President / Temporary Chairman of Committees.

103

Name Type14 Dates15 Tabled16

Department of Broadband, Communications and the Digital Economy Report on Digital Television Transmission and Reception, February 2013

The operation of the Prohibition of Advertisements of Interactive Gambling Services under the Interactive Gambling Act 2001, 2012 report

Funding of Consumer Representation Grants Program to Telecommunications Annual Report 2011-12

Report on the operations of Acts

A. -

B. 14/01/13 C. 14/01/13

A. -

B. 04/02/13 C. 04/02/13

A. -

B. 26/02/13 C. 26/02/13

05/02/13

12/03/13

19/03/13

Sustainability, Environment, Water, Population and Communities portfolio Name Type Dates Tabled

Director of National Parks Annual Report 2011-2012

Statutory authority

A. -

B. 11/10/12 C. 11/10/12

19/11/12 (Received 09/11/12)

Murray-Darling Basin Authority Annual Report 2011-2012 Prescribed agency

A. 14/11/12 B. 23/11/12 C. 23/11/12

05/02/13 (Tabled HoR 29/11/12)

National Environment Protection Council Annual Report 2011-2012 Statutory authority

A. -

B. 16/01/13 C. 16/01/13

05/02/13

Sydney Harbour Federation Trust Statement relating to the extension of specified period for presentation of a report

Annual Report 2011-12

Erratum: Transmittal letter omitted from Annual Report 2011-12

Statutory authority

A. -

B. 19/10/11 C. 19/10/11

A. 23/09/12 B. 30/01/13 C. 30/01/13

28/11/12

05/02/13 (Received 14/01/13)

19/03/13

Wet Tropics Management Authority Annual report and State of the Wet Tropics Report 2011-12

Report on the operation of an Act

A. 27/09/12 B. 05/11/12 C. 05/11/12

28/11/12

104

The Senate

Finance and Public Administration

Legislation Committee

Annual reports (No. 2 of 2013)

December 2013

105

© Commonwealth of Australia 2013

ISBN 978-1-74229-913-6

Senate Finance and Public Administration Committee Secretariat:

Ms Lyn Beverley (Secretary)

Ms Margaret Cahill (Research Officer)

Ms Mel McLister (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

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

106

Membership of the Committee

Members

Senator Cory Bernardi (Chair) LP, SA

Senator the Hon Kate Lundy (Deputy Chair) ALP, ACT Senator Bridget McKenzie NAT, VIC

Senator Lee Rhiannon AG, NSW

Senator Dean Smith LP, WA

Senator Mehmet Tillem ALP, VIC

107

108

Table of contents

Members

hip of the Committee ........................................................................ iii

Chapter

1.............................................................................................................. 1

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

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

Annual reports presented ........................................................................................ 2

Non-reporting bodies ............................................................................................. 2

Other issues ............................................................................................................ 2

Appendix 1 ........................................................................................................... 5

Dates relating to the presentation of reports between 30 April 2013........................................................................................................................

1 November 2012 - 5

109

110

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 departments1 and the departments and agencies of the Prime Minister and Cabinet Portfolio and the Finance and Deregulation Portfolio.2

1.2 This is the second report on annual reports for 2013 and provides an overview of the annual reports for the 2011-12 financial year presented to the Parliament between 1 November 2012 and 30 April 2013. 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. The standing order states that 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

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.

2 Following amendments to the Administrative Arrangements Order issued on 18 September 2013, the deregulation function moved to the Department of Prime Minister and Cabinet which will be reflected in forthcoming annual reports.

111

(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.

Annual reports presented 1.4 The following annual reports of the Commonwealth Superannuation Corporation (CSC) were not examined by the committee:

• CSC Annual Report to Parliament 2011-12 - DFRB Scheme, DFRDB Scheme and DFSPB;3 and

• CSC Annual Report to Parliament 2011-12 - MilitarySuper. 4

1.5 Although CSC is an agency within the Finance and Deregulation Portfolio, these reports cover the military superannuation schemes5 and, in accordance with the legislation administered by the Minister for Defence under the Administrative Arrangements Order, were referred to the Senate Foreign Affairs, Defence and Trade Legislation Committee for examination and report.6

1.6 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. Five documents in these categories were referred to the committee but not examined in this report (see Appendix 1).

Non-reporting bodies 1.7 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. On this occasion, the committee makes no recommendation for any organisations not presenting an annual report to do so.

Other issues

Government response

1.8 The Government provided a response to the committee's Report on Annual Reports (No. 1 of 2012) on 16 May 2013. The Government agreed with the committee's recommendation that a list of all departments and agencies required to report on social inclusion outcomes should be published on the Australian Government social inclusion website. The committee further notes, however, that following the most recent changes to the Administration Arrangements Order, the Social Inclusion Unit was disbanded and the website was closed from 14 October

3 DFRB Scheme (Defence Forces Retirement Benefits Scheme), DFRDB Scheme (Defence Forces Retirement and Death Benefits Scheme), and DFSPB (Defence Force (Superannuation) (Productivity Benefits) Scheme)

4 MilitarySuper (Military Superannuation and Benefits Scheme)

5 A separate report of CSC covering the public sector superannuation schemes was tabled on 31 October 2013.

6 See Senate Foreign Affairs Defence and Trade Legislation Committee, Annual reports (No. 1 of 2013), March 2013, p. 25.

112

2013.7 The committee will monitor this development in relation to the reporting requirement.

Public Governance, Performance and Accountability Act 2013

1.9 The committee notes that the Public Governance, Performance and Accountability Act 2013 (PGPA Act) received Royal Assent on 29 June 2013. The PGPA Act is expected to replace the Financial Management and Accountability Act 1997 (FMA Act) and the CAC Act from 1 July 2014.8 Section 46 of the PGPA Act deals with the annual reporting requirements for Commonwealth entities.

1.10 The committee considers there is a need for clarity with regard to section 46 of the PGPA Act concerning the annual report tabling deadline. This section provides for a date that the annual report must be given to the responsible minister but fails to specify a date for the presentation of annual reports of Commonwealth entities to the Parliament.

1.11 The committee notes that this may be addressed in the forthcoming regulations and/or guidelines which will be provided to the Joint Committee on Public Accounts and Audit (JCPAA) for review. The committee will write to the JCPAA and draw this matter to its attention to form part of its review and will continue to monitor the development of annual reporting requirements.

Senator Cory Bernardi

Chair

7 http://www.socialinclusion.gov.au/news/2013-09/administrative-arrangement-orders, accessed 8 October 2013.

8 Section 2 of the PGPA Act concerning commencement, provides for provisions 6 to 112 of the Act to commence on 'A single day to be fixed by Proclamation. However, if the commencement of the provision(s) is not fixed by Proclamation before 1 July 2014, the provision(s) commence on 1 July 2014.'

113

114

Appendix 1

Dates relating to the presentation of reports between 1 November 2012 - 30 April 2013 Report Submitted to

Minister

Received by Minister Tabled in the Senate or

presented out of sitting (*)

Tabled in the House of Representatives

PRIME MINISTER AND CABINET PORTFOLIO

Australian Public Service Commission - State of the Service Report 2011-12 - Section 44 of the Public Service Act 1999

16/11/12 16/11/12 5/2/13 29/11/12

FINANCE AND DEREGULATION PORTFOLIO

Commonwealth Superannuation Corporation - Report for 2011-12, including Defence Forces Retirement Benefits Scheme (DFRB), the Defence Force Retirement and Death Benefits Scheme (DFRDB) and the Defence Force (Superannuation) (Productivity Benefits) Scheme (DFSPB)

15/10/12 15/10/12 8/11/12* 26/11/12

Commonwealth Superannuation Corporation - Report for 2011-12, including the Military Superannuation and Benefits Scheme (MilitarySuper)

15/10/12 15/10/12 8/11/12* 26/11/12

Members of Parliament (Staff) Act 1984 - Report for 2011-12 on ministerial consultants engaged

16/11/12 16/11/12 22/1/13* 5/2/13

Department of Finance and Deregulation - Report on advances provided under the Annual Appropriations Acts 2011-12 (no legislative requirement to table the report)

19/10/12 23/10/12 5/2/13 29/11/12

Department of Finance and Deregulation - Consolidated financial statements for the year ended 30 June 2012 - Sections 55 and 56 of the FMA Act 1997

9/11/12 12/11/12 5/2/13 29/11/12

Department of Finance and Deregulation - 2011-12 Certificate of Compliance - Report to the Parliament

10/12/12 11/12/12 6/2/13 6/2/13

115

116

The Senate

Foreign Affairs, Defence and Trade

Legislation Committee

Annual reports (No. 2 of 2013)

December 2013

117

© Commonwealth of Australia ISBN 978-1-74229-914-3

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

118

Membership of the Committee Members

Senator Alan Eggleston, LP, WA (Chair) Senator the Hon Ursula Stephens, ALP, NSW (Deputy Chair) Senator Sean Edwards, LP, SA Senator the Hon John Faulkner, ALP, NSW Senator David Fawcett, LP, SA Senator Peter Whish-Wilson, AG, TAS

Secretariat

Mr David Sullivan, Secretary Mr Owen Griffiths, Principal Research Officer Miss Jedidiah Reardon, Senior Research Officer Ms Penny Bear, Research Officer Ms Jo-Anne Holmes, Administrative Officer

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

119

120

TABLE OF CONTENTS

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

Preface

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

Annual reports .......................................................................................................... 5

Director of Military Prosecutions ........................................................................... 5

Judge Advocate General ....................................................................................... 12

Appendix 1

List of annual reports tabled during the period 1 November 2012 to 30 April 2013 and referred to the committee .................... 15

121

122

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.

3. This report also examines annual reports that were tabled after 30 April 2013. 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.

123

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: 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, 28 June 2012;

• for Commonwealth authorities and companies: the Commonwealth Authorities and Companies Act 1997(CAC Act); in particular, the Commonwealth Authorities and Companies (Report of Operations) Orders 2002; and

• for non-statutory bodies: the guidelines 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, vol s124, pp. 2643-45 (requirements were modified in 1987).

1 Requirements for annual reports for departments, executive agencies and FMA Act bodies, Department of the Prime Minister and Cabinet, 28 June 2012, 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.

124

Annual reports considered

6. 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

7. Under Senate Standing Order 25(20)(c), the committee must report to the Senate any lateness in the presentation of annual reports.

8. 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.3

9. 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.

Comments made in the Senate

10. 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.

Matters of significance

11. 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.

Bodies not presenting annual reports to the Senate

12. 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

3 Requirements for annual reports for departments, executive agencies and FMA Act bodies, Department of Prime Minister and Cabinet, 28 June 2012 , Part 1, section 4.

125

present such reports. The committee is satisfied that there are no bodies within these portfolios that do not meet their reporting requirements to the Senate.

Standard of reports

13. 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

14. 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 2012 and 31 December 2012.

126

Chapter 1

Annual reports

Director of Military Prosecutions

1.1 The Director of Military Prosecutions Report for the period 1 January to 31 December 2012 was tabled in the Senate on 15 May 2013. This is the sixth report presented to Parliament by Brigadier LA McDade.

1.2 Brigadier McDade noted that this will be her last report as her term as Director of Military Prosecutions (DMP) will expire on 11 July 2013. As such, Brigadier McDade took the opportunity to thank the officers, non-commissioned officers and Australian Public Service staff that have been posted to or worked at the office during her appointment. She acknowledged that:

It is through their collective efforts, hard work, dedication and support that the office has developed into an effective prosecutorial unit.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

1 Director of Military Prosecutions, Annual Report 2012, p. 1. 2 Director of Military Prosecutions, Annual Report 2012, p. 1. 3 Director of Military Prosecutions, Annual Report 2012, p. 1.

127

(e) to do anything incidental or conducive to the performance of any of the preceding functions.4

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

Personnel

1.6 Brigadier McDade reported that at the commencement of the reporting period the DMP had established 15 positions for prosecutors, a senior commissioned officer performing the duties of a Service Police Investigations Liaison Officer, and eight civilian support staff.6

External Associations

1.7 Brigadier McDade 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 AACP held its annual conference in Darwin in 2012. Brigadier McDade, the deputy Director and two junior prosecutors attended the conference, titled 'Crocs, Crooks and Chromosomes'. Brigadier McDade noted that the conference provided:

…a practical look at DNA evidence and a unique opportunity to explore the most effective methods of interpreting and presenting DNA evidence in criminal trials, from a purely prosecutorial perspective.7

Internal (Department of Defence) Liaison

1.8 During the reporting period, Brigadier McDade 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.8

1.9 Brigadier McDade 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.9

1.10 The matters raised with the MJCC by Brigadier McDade included:

4 Defence Force Discipline Act 1982, section 188GA(1). 5 Defence Force Discipline Act 1982, section 188GA(1). 6 Director of Military Prosecutions, Annual Report 2012, p. 2. 7 Director of Military Prosecutions, Annual Report 2012, p. 4. 8 Director of Military Prosecutions, Annual Report 2012, pp. 4-5. 9 Director of Military Prosecutions, Annual Report 2012, p. 5.

128

• difficulties concerning the framing and extent of drug offences under the

DFDA compared to equivalent legislation in other jurisdictions; and

• providing input on proposed changes to the investigative provisions of the DFDA to update and improve those provisions.10

1.11 The OMDP continued to support the Defence Police Training Centre in its training of service police in investigations and the management of investigations.11

Contact with military prosecuting authorities of other armed forces and other organisations

1.12 In May 2012, Brigadier McDade attended the XIXth Congress of the International Society for Military Law and the Law of War in Quebec, Canada. While in Canada, Brigadier McDade also met with the Canadian Director of Military Prosecutions, Colonel Mario Leveillee who had just taken over the role from Captain John Maguire, Royal Canadian Navy. She was provided with briefings on the history and passage of Canada's recent military justice legislation. Brigadier McDade noted that the two offices are highly comparable, with similar caseloads, staffing levels and statutory powers and constraints.12

Caseload

1.13 Brigadier McDade noted that from 1 January 2011 to 31 December 2012, 38 Defence Force Magistrate (DFM), 11 Restricted Courts Martial (RCM) and one General Court Martial (GCM) hearings were held. She also provided the following caseload data for the reporting period:

• 32 matters were not proceeded;

• 35 matters were referred back for summary disposal;

• two matters were referred to civilian Directors of Public Prosecution; and

• as at 31 December 2012, Office of the DMP had 51 open matters. 13

Significant cases

1.14 The annual report cited seven significant cases heard during the reporting period:

• Li v Chief of Army [2012] ADFDAT 1: 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.

10 Director of Military Prosecutions, Annual Report 2012, p. 5. 11 Director of Military Prosecutions, Annual Report 2012, p. 5. 12 Director of Military Prosecutions, Annual Report 2012, p. 6. 13 Director of Military Prosecutions, Annual Report 2012, p. 7.

129

• Li v Chief of Army [2012] FCAFC: on 13 April 2012, Major Li lodged an

appeal against the DFDAT decision with the Federal Court of Australia. The appeal was heard on 13 November 2012. The appeal was dismissed by a majority of the Full Court of the Federal Court of Australia on

26 February 2013.

• Jones v Chief of Navy [2012] ADFDAT 2: in December 2011, Lieutenant

Commander Jones was convicted by GCM of seven counts of 'indecent conduct upon an Able Seaman without her consent' and one count of 'attempting to destroy service property'. An appeal against the convictions on 'indecency offences' to the DFDAT was heard on 15-16 March 2012. On 22 May 2012, the appeal was dismissed (except for quashing one conviction, but convicting him of the alternative charge of prejudicial conduct).

• Jones v Chief of Navy [2012] FCAFC 125: on 19 June 2012, Mr Jones lodged

and appeal to the federal Court of Australia against the DFDAT decision. The appeal was heard on 19 July 2012. The appeal was dismissed on 7 September 2013 and Mr Jones was ordered to pay the Chief of Navy's costs.

• Bateson v Chief of Army [2012] ADFDAT 3: on 3 August 2010, Sergeant Bateson as convicted by a DFM of two charges of insubordinate conduct. An appeal to the DFDAT was heard on 27 April 2012, and in its decision of 25 May 2012, the appeal was allowed and the convictions quashed. The DFDAT did not order a retrial.

• King v Chief of Army [2012] ADFDAT 4: on 28 September 2012, the DFDAT

heard an appeal in relation to the conviction of Warrant Officer Class One King by a DFM on one count of disobeying a lawful command, two counts of prejudicial conduct, and a single count of giving false evidence to an Inspector General-ADF inquiry officer. The DFDAT decision of 28 September 2012 allowed the appeal and quashed the convictions.

• General Court Martial of Captain Stefan King, RAN: on 12 December 2012, Captain Stefan King, RAN was convicted by a GCM of three counts of obtaining a financial advantage by deception, and four counts of obtaining financial advantage contrary to subsection 61 (3) of the DFDA and section 135.2 (1) of the Criminal Code Act 1995 (Cth). Captain King has filed a notice of appeal against his convictions in the DFDAT.14

Afghanistan—Detainee Management—Allegations of Procedural Misconduct

1.15 Brigadier McDade 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'.

14 Director of Military Prosecutions, Annual Report 2012, pp. 7-12.

130

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 at the time of reporting; the fourth trial was scheduled for April 2013.15

Military Court of Australia Bills

1.16 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, and referred to the Senate Legal and Constitutional Affairs Committee on 28 June 2012. Brigadier McDade made 'a succinct submission to the Committee, expressing the hope that the Bills are constitutionally sound because it is inevitable that they will be challenged'.16

1.17 The committee's report, tabled in the Senate on 9 October 2012,

recommended that the bills be passed subject to certain amendments being made to the explanatory memoranda. Brigadier McDade noted that it was uncertain when debate on the bills would resume in the House of Representatives. She urged that,

…consideration be given to proceeding separately with those parts of the second Bill which are not contingent on the establishment of the Military Court of Australia, so that improvements such as statutory recognition of the role of the Director of Defence Counsel Services are not held up.17

Investigative provisions of the DFDA

1.18 Brigadier McDade observed that the investigative provisions of the DFDA are in need of legislative reform and again noted the examples provided in the previous annual report.18

Assistance to victims of service offences

1.19 Brigadier McDade noted her ongoing focus on the positive management of victims, including working with the Head of the Sexual Misconduct Prevention and Response Office to support victims of sexual offences as well as assisting in providing case studies for the purpose of educating commanders and ADF personnel on the prevention of sexual offences.19

15 Director of Military Prosecutions, Annual Report 2012, pp. 12-13.

16 Director of Military Prosecutions, Annual Report 2012, p. 14.

17 Director of Military Prosecutions, Annual Report 2012, p. 15.

18 Director of Military Prosecutions, Annual Report 2012, p. 15.

19 Director of Military Prosecutions, Annual Report 2012, pp. 15-16.

131

Information communication technology (ICT) function

1.20 Brigadier McDade reported a number of ongoing information technology problems for the ODMP. She noted that these concerns were raised in the previous annual report.20

Table of Offences

1.21 The report included the following table of offences:21

Class of Offence RAN ARMY RAAF TOTAL

Acts intended to cause injury 1 16 14 21

Sexual assault and related offences 2 7 4 13

Dangerous or negligent acts endangering persons 0 1 0 1

Theft and related offences 4 3 1 8

Fraud, deception and related offences 7 14 8 29

Illicit drug offences 0 3 0 3

Prohibited and regulated weapons and explosives offences 1 1 0 2

Property damage and environmental pollution 1 1 0 2

Traffic and vehicle regulatory offences 0 6 0 6

Offences against justice procedures, government security and government operations

1 0 0 1

Specific military discipline offences 14 22 3 39

TOTAL 31 74 20 125

20 Director of Military Prosecutions, Annual Report 2012, p. 16.

21 Director of Military Prosecutions, Annual Report 2012, Annex B.

132

Conclusion

1.22 In conclusion, Brigadier McDade stated that:

The legislative establishment of the position of Director of Military Prosecutions represented a radical shift to statutory independence in the prosecution of service offences. In my opinion, during my tenure, awareness and understanding—on the part of commanders, other ADF members and the public—of the role and functions of the DMP has increased.22

22 Director of Military Prosecutions, Annual Report 2012, p. 16.

133

Judge Advocate General

1.23 The Judge Advocate General annual report for the period 1 January 2012 to 31 December 2012 was tabled in the Senate on 18 June 2013.

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).23

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;24

(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 martial25 and Defence Force magistrates;26

(d) nominating to a Service Chief officers to be members of the judge advocate's panel;27

(e) appointing Defence Force magistrates from officers appointed as members of the judge advocate panel;28

(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.

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 2011.29

23 Judge Advocate General Annual Report, 2012, pp. 1-2. 24 Defence Force Discipline Act 1982, section 196A. 25 Defence Force Discipline Act 1982, section 129B. 26 Defence Force Discipline Act 1982, section 129C. 27 Defence Force Discipline Act 1982, section 196. 28 Defence Force Discipline Act 1982, section 127.

134

Appeals to the Defence Force Discipline Appeal Tribunal

1.27 During the reporting period, there were four appeals to the Defence Force Discipline Appeal Tribunal (DFDAT) in connection with convictions recorded by courts martial and DFM. These were:

(a) King v Chief of Army [2012] ADFDAT 4;

(b) Bateson v Chief of Army [2012] ADFDAT 3;

(c) Jones v Chief of Navy [2012] ADFDAT 2; and

(d) Li v Chief of Army [2012] ADFDAT 1.

1.28 The appeals in King and Bateson were upheld, the appeal in Jones was partly upheld (a subsequent appeal to the Full Bench of the Federal Court was dismissed) and the appeal in Li was dismissed.30

Legislation

1.29 The JAG also 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, and referred to the Senate Legal and Constitutional Affairs Committee on 28 June 2012. The committee report, tabled in the Senate on 9 October 2012, recommended that the bills be passed subject to certain amendments being made to the explanatory memoranda. The JAG noted that the bills were not passed during the reporting period.31

Other Military Discipline Reform

1.30 The JAG noted that during the reporting period Defence Legal had developed simplified procedures with guidance and commentary for summary proceedings. Defence Legal also reviewed the chapters of the Discipline Law Manual which provides guidance to those involved in summary authority proceedings.

1.31 During the reporting period the publication of trial outcomes for courts martial and DFMs in service newspapers commenced. The JAG commended this initiative as it enhances openness and transparency. However, the JAG did raise concerns that in some cases acquittals were not being included in the reporting.32

29 Judge Advocate General Annual Report, 2012, p. 5. 30 Judge Advocate General Annual Report, 2012, pp. 6-7. 31 Judge Advocate General Annual Report, 2012, pp. 7-9. 32 Judge Advocate General Annual Report, 2012, pp. 9-10.

135

Discipline Law Training

1.32 The Governance of Military Justice Training Manual (the manual) came into effect in September 2012. The JAG explained that the manual provides direction to the Services for the provision of military justice training across Defence.

1.33 The promulgation of the manual implements military justice

recommendations by:

• Mr JCS Burchett, QC in the 2001 Report of an Inquiry into Military Justice in the Australian Defence Force;

• The Senate Foreign Affairs, Defence and Trade References Committee in the

2005 report The Effectiveness of Australia's Military Justice System;

• The Inspector-General ADF in the 2006-2007 and 2007-2008 Defence

Annual Reports; and

• Sir Laurence Street, AC KCMG, QC and Air Marshal Leslie Fisher AO

(Retd), in the 2009 Report of the Independent Review on the Health of the Reformed Military Justice System.33

1.34 The JAG outlined the discipline law training provided in the ADF during the reporting period, and the ongoing development of discipline law training.34

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.35

1.36 He noted that these will be replaced by the independent Chapter III civilian Military Court of Australia if the Military Court of Australia Bill 2012 and the Military Court of Australia Transitional Provisions and Consequential Amendments) Bill 2012 are enacted.36

Senator Alan Eggleston Chair

33 Judge Advocate General Annual Report, 2012, pp. 12-13.

34 Judge Advocate General Annual Report, 2012, pp. 14-17.

35 Judge Advocate General Annual Report, 2012, p. 18.

36 Judge Advocate General Annual Report, 2012, p. 18.

136

Appendix 1

List of annual reports tabled during the period 1 November 2012 to 30 April 2013 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.

2 Apr 2013 @ 9 Apr 2013

% 9 Apr 2013

# 15 May 2013

^ 15 May 2013

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.

12 Apr 2013 @ 19 Apr 2013

% 19 Apr 2013

# 18 June 2013

^ 27 May 2013

137

138

The Senate

Legal and Constitutional Affairs

Legislation Committee

Annual reports (No. 2 of 2013)

December 2013

139

© Commonwealth of Australia

978-1-74229-915-0

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

140

iii

MEMBERS OF THE COMMITTEE

43rd Parliament

Members Senator Patricia Crossin (ALP, NT) (Chair) Senator Gary Humphries (LP, ACT) (Deputy Chair) Senator Sue Boyce (LP, QLD) Senator Mark Furner (ALP, QLD) Senator Louise Pratt (ALP, WA) Senator Penny Wright (AG, SA)

44th Parliament

Members Senator the Hon. Ian Macdonald (LP, QLD) (Chair) Senator Gavin Marshal

l (ALP, VIC) (Deputy Chair)

Senator Sue Boyce (LP, QLD) Senator Zed Seselja (LP, ACT) Senator the Hon. Lisa Singh (ALP, TAS) Senator Penny Wright (AG, SA)

Secretariat Ms Sophie Dunstone Committee Secretary Ms Julie Dennett Committee Secretary Mr Tim Bryant Committee Secretary

Ms Leonie Lam Research Officer

Ms Marina Katic Research Officer

Suite S1.61 Telephone: (02) 6277 3560

Parliament House Fax: (02) 6277 5794

CANBERRA ACT 2600 Email: legcon.sen@aph.gov.au

141

142

TABLE OF CONTENTS

MEMBERS OF THE COMMITTEE ............................................................. iii

PREFACE ..........................................................................................................vii

Terms of reference ................................................................................................ vii

Role of annual reports .........................................................................................viii

Annual reporting requirements ............................................................................viii

'Apparently satisfactory' ........................................................................................ ix

Timeliness .............................................................................................................. ix

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

ANNUAL REPORTS OF STATUTORY AUTHORITIES ................................. 1

Attorney-General's Portfolio .................................................................................. 1

Audio-Visual Copy

right Society Limited .............................................................. 1

High Court of Australia .......................................................................................... 3

CHAPTER 2 ........................................................................................................ 7

REPORTS ON THE OPERATION OF ACTS AND PROGRAMS ................... 7

Report on the operation of the Surveillance Devices Act 2004 .............................. 7

Annual report on the Commonwealth Ombudsman's activities under Part V of the Australian Federal Police Act 1979 ..................................................................... 10

APPENDIX 1 ..................................................................................................... 15

Reports tabled during the period 1 November 2012 and 30 April 2013 and referred to the committee ...................................................................................... 15

143

144

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.

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.

145

viii

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).1

The 2011-12 annual reports are prepared in accordance with the Requirements for Annual Reports issued on 28 June 2012. 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.2

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.

1 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).

2 DPMC, Requirements for Annual Reports, 28 June 2012, p. i.

146

ix

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 1987.3

'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.4

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.5

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

3 Official Senate Hansard, 8 December 1987, pp 2643-2645.

4 DPMC, Requirements for Annual Reports, 28 June 2012, Part 1, section 4.

5 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), December 2012, p. 5.

147

x

(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 2012 and 30 April 2013, and which have been referred to the committee for examination, can be found at

Appendix 1.6 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 2012 tabling deadline for the Senate.

6 This table also includes the reports on the operation of acts or programs which have been referred to the committee.

148

xi

Although the report of the High Court of Australia was tabled after 31 October 2012, 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.7

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.8

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.

7 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.

8 DPMC, Requirements for Annual Reports, 28 June 2012, Part 1, section 4.

149

150

CHAPTER 1

ANNUAL REPORTS OF STATUTORY AUTHORITIES 1.1 The annual reports for the financial year 2011-12 of the following statutory authorities in the Attorney-General's portfolio were referred to the committee for examination and report:

 Administrative Review Council;

 Audio-Visual Copyright Society Limited (Screenrights);

 High Court of Australia; and

 National Native Title Tribunal.

1.2 The committee did not receive any annual reports from statutory authorities in the Immigration portfolio during the period covered by this report.

1.3 As in previous reports of the committee, it has decided to select a number of annual reports for closer examination. On this occasion, the reports of the following agencies are examined:

 Audio-Visual Copyright Society Limited (Screenrights); and

 High Court of Australia.

Audio-Visual Copyright Society Limited 1.4 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: the exercise of 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 to collect money from educational institutions for distribution to relevant copyright owners.1 Screenrights' annual report was tabled in both the Senate and the House of Representatives on 5 February 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 $34 640 from 3464 full members.3 This is an increase compared with its liability of $33 210 from 3321 members in 2011.4

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

1 Screenrights Annual Report 2011-12, p. 30.

2 Screenrights Annual Report 2011-12, p. 21.

3 Screenrights Annual Report 2011-12, p. 21.

4 Screenrights Annual Report 2011-12, p. 21.

151

Page 2

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 provisions for Screenrights are contained in sections 135R, 135ZZD, 135ZZV and 183D of the Copyright Act.

1.7 Certain issues identified by this committee in 20125 persist in the Screenrights Annual Report 2011-12. 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 the 2011-12 annual report are a clear organisational structure, information on the enabling legislation under which Screenrights operates, and 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 size of the 2011-12 annual report conforms to the usual annual report size dimension of B5; this is a welcome departure from the previous "brochure-like" format of the 2010-11 annual report.

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.

1.9 During 2011-12, Screenrights reported a record $40.7 million in license revenue and other income for the film and television industries.6 Expenditure in relation to total collections was 15.3% during 2011-12 and Screenrights stated that its objective for the upcoming financial year was to maintain this ratio below 16.0%.7

The company distributed more than $32.2 million to rights holders in film and television.8

1.10 Highlights for Screenrights during 2011-12 included the launch of a new online registration system (MyScreenrights) allowing members to register programs and track their payment history, a trial of the EnhanceTV Direct streaming service for educators, and contributions to current reviews and debates in relation to copyright laws.9 MyScreenrights provides members with greater access to information about their business and reduces Screenrights' administrative costs.10 The EnhanceTV Direct

5 Senate Legal and Constitutional Affairs Legislation Committee, Annual reports (No. 2 of 2012), September 2012, p. 2.

6 Screenrights Annual Report 2011-12, pp 1, 4, 6, 7 and 8.

7 Screenrights Annual Report 2011-12, pp 1, 10 and 21.

8 Screenrights Annual Report 2011-12, pp 1, 4 and 6.

9 Screenrights Annual Report 2011-12, pp 1, 4 and 7.

10 Screenrights Annual Report 2011-12, p. 4.

152

Page 3

pilot streaming service provides access to a wide range of content for both educators and students and benefits members by increasing the longevity of their content and the returns for them.11 Screenrights' participation in the Copyright Tribunal's determination on a rate for the retransmission of the nine multi-channels by pay television operators reflects the company's active role in engaging with important copyright cases and ensuring its services meet the needs of rights holders and users.12

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.13 The consolidated entity reported a net operating loss after income tax of $360 632, an increase from $229 690 in the preceding year.14 The loss equals the amount expended by the company on legal costs associated with the legal fees which were funded from the reserve fund and retained earnings.15 During the 2011-12 period, the directors reported no significant changes in the state of affairs of the company or consolidated entity.16

1.12 The committee considers the annual report of Screenrights to be 'apparently satisfactory', but 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 2011-12 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.17 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).18

11 Screenrights Annual Report 2011-12, p. 4.

12 Screenrights Annual Report 2011-12, pp 4 and 6.

13 Screenrights Annual Report 2011-12, p. 7.

14 Screenrights Annual Report 2011-12, p. 21.

15 Screenrights Annual Report 2011-12, p. 7.

16 Screenrights Annual Report 2011-12, p. 21.

17 Department of Finance and Deregulation, Chart of 109 Agencies under the Financial Management and Accountability Act 1997 (FMA Act), 4 October 2013.

18 Department of Prime Minister and Cabinet (DPMC), Requirements for Annual Reports, 28 June 2012, Part 1, subsection 3(4)

153

Page 4

1.15 The annual report of the High Court of Australia was tabled in the House of Representatives on 26 November 2012 and in the Senate on 27 November 2012, and complies with the High Court's own reporting requirements.

1.16 For the reporting period 2011-12, the High Court reported a larger deficit ($7.099 million) than the previous financial year ($4.822 million).19 In 2011-12, the court received $17.058 million in income, including revenue from appropriations. The

High Court reported $24.158 million in operating expenses and it received an additional $1.5 million to its base funding to meet its operational costs and to maintain services. It also received an equity injection totalling $4.14 million for the purchase of non-financial assets.20 A major reason for the increased deficit can be attributed to two factors: the inclusion in the court's operating expenses of depreciation of non-financial assets (to the value of $4.413 million), for which the court does not receive appropriation funding; and a 'revaluation decrement' of its library holdings (totalling $3.357 million).21 However, the court reported an underlying surplus of $0.143 million following exclusions of non-cash and unfunded items, and the above depreciation and revaluation figures.22

1.17 In relation to maintenance and restoration works on the building and its precinct, restoration work on the cascade waterfall was completed in 2011-12 and work is underway to rectify the court building forecourt's interface with the National Portrait Gallery.23 Approval for work on the western part of the court building forecourt to meet safety and structural concerns was obtained from the House of Representatives and the Senate.24

1.18 During 2011-12, 45 000 people visited the High Court and the court hosted guided tours for and gave presentations to 30 000 students.25 The significant enhancement of the court's website also increased the public's accessibility to a wide range of information concerning the court's activities; this improved facility has been well-received by a variety of stakeholders.26

1.19 The court reported a slight increase in the number of cases filed for the 2011- 12 reporting period (728 cases) from 2010-11 (715 cases).27 The proportion of special leave applications filed by self-represented litigants also increased to 41% in 2011-12 from 34% in 2010-11. The majority of cases (51%) were filed in the Sydney registry office, followed by the offices in Melbourne (31%) and Canberra (18%). The

19 High Court of Australia Annual Report 2011-12, p. 51.

20 High Court of Australia Annual Report 2011-12, pp 10 and 15.

21 High Court of Australia Annual Report 2011-12, pp 10 and 51.

22 High Court of Australia Annual Report 2011-12, pp 10 and 15.

23 High Court of Australia Annual Report 2011-12, p. 10.

24 High Court of Australia Annual Report 2011-12, pp 10 and 15.

25 High Court of Australia Annual Report 2011-12, p. 10.

26 High Court of Australia Annual Report 2011-12, p. 15.

27 High Court of Australia Annual Report 2011-12, p. 28.

154

Page 5

Melbourne and Canberra offices processed cases filed in other interstate cities as well as those filed in these respective cities.28

1.20 The committee again notes that an issue commented on previously has resurfaced in the High Court's 2011-12 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 of the report in the 'Notes to and forming part of the Financial Statements for the High Court of Australia'.29 This was also the case in the 2011-12 annual report.

1.21 Although the Requirements for Annual Reports do not apply to the High Court, the committee wishes to reiterate 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.30

1.22 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.

1.23 The committee considers the annual report of the High Court to be 'apparently satisfactory'.

28 High Court of Australia Annual Report 2011-12, p. 28.

29 High Court of Australia Annual Report 2011-12, p. 59.

30 DPMC, Requirements for Annual Reports, 28 June 2013, p. 3.

155

156

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

 Annual report on the Commonwealth Ombudsman's activities under Part V of

the Australian Federal Police Act 1979 for the period 1 July 2011 to 30 June 2012 (published by the Commonwealth Ombudsman).

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 29 November 2012 and in the Senate on 5 February 2013. The report was presented to the minister on 4 October 2012, just 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.

2.3 The report relates to the period from 1 July 2011 to 30 June 2012. During this reporting period, some important legislative and policy developments took place in relation to the SD Act. Following reforms to the Extradition and Mutual Assistance in Criminal Matters Legislation Amendment Act 2012, which is a formal assistance process between countries to assist one another in their investigation and prosecution of criminal offences, the SD Act provides authorisation for the use of a surveillance device to be used for foreign law enforcement purposes. A foreign government can request the use of a surveillance device in another country's jurisdiction and arrange for the information obtained to be sent to that foreign country. This is a reciprocal arrangement, which also enables the Australian government to request a foreign government to authorise the use of a surveillance device in that jurisdiction and arrange for the information to be sent to Australia.1 Authorisation for the use of a device is granted following a foreign government's request for mutual assistance and approval by the Attorney-General.2 The use of surveillance devices was previously restricted to domestic purposes, but these amendments mean surveillance devices can

1 Attorney-General's Department (AGD), Surveillance Devices Act 2004 Report for the year ending 30 June 2012, p. 8.

2 AGD, Surveillance Devices Act 2004 Report for the year ending 30 June 2012, p. 8.

157

Page 8

be authorised for foreign law enforcement purposes, but only where their use could already be authorised for a domestic purpose.3

2.4 Other relevant developments in relation to the SD Act in 2011-12 included an increase (of 9.2%) in surveillance device warrants issued, with three more agencies

using the investigative tool.4 While the Australian Federal Police (AFP) reported a 22.2% increase in obtaining surveillance device warrants from the preceding period (up from 406 in 2010-2011 to 496 in 2011-12), this contrasted with the Australian Crime Commission's (ACC) decrease of 26.8% in the same reporting period (131 warrants obtained in 2011-12 compared to 179 warrants obtained in 2010-11).5

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.6

2.6 There were no significant judicial decisions under the SD Act during the reporting period.7

2.7 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.8

2.8 For 2011-12 there was an approximate 9.1% increase in the number of warrants issued (642 warrants issued) compared to the preceding period (588 warrants issued).9

2.9 The report notes that section 10 of the SD Act allows a surveillance device warrant to cover more than one surveillance device or more than one kind of surveillance device. It could also be issued for composite devices, meaning devices that may have more than one function. For example, a warrant could authorise the use of separate listening and tracking devices for a vehicle or a composite device containing both listening and tracking functions.10

2.10 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

3 AGD, Surveillance Devices Act 2004 Report for the year ending 30 June 2012, p. 8.

4 AGD, Surveillance Devices Act 2004 Report for the year ending 30 June 2012, p. 8.

5 AGD, Surveillance Devices Act 2004 Report for the year ending 30 June 2012, p. 8.

6 AGD, Surveillance Devices Act 2004 Report for the year ending 30 June 2012, p. 8.

7 AGD, Surveillance Devices Act 2004 Report for the year ending 30 June 2012, p. 8.

8 AGD, Surveillance Devices Act 2004 Report for the year ending 30 June 2012, pp 9-11.

9 AGD, Surveillance Devices Act 2004 Report for the year ending 30 June 2012, p. 10.

10 AGD, Surveillance Devices Act 2004 Report for the year ending 30 June 2012, p. 10.

158

Page 9

communication if it is impracticable for the law enforcement to apply in person. There were no remote applications during the reporting period.11

2.11 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.12

2.12 The table below shows the number of arrests, prosecutions and convictions for 2011-12. The figures in brackets refer to the preceding reporting period 2010-11. During the reporting period there was an increase in arrests, prosecutions and convictions.13

AGENCY Arrests Safe Recovery Prosecutions Convictions

ACC (30) 25 - (4) (4)

AFP (47) 112 - (50) 125 (10) 25

Victoria Police (5) 2 - - -

CCC - - - (114)

Total (8215) 139 - (54) 125 (15) 25

2.13 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 (if at all), 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.16

11 AGD, Surveillance Devices Act 2004 Report for the year ending 30 June 2012, p. 12.

12 AGD, Surveillance Devices Act 2004 Report for the year ending 30 June 2012, p. 14.

13 Adapted from: AGD, Surveillance Devices Act 2004 Report for the year ending 30 June 2012, p. 15.

14 This conviction is the result of a warrant and extensions granted during 2008-09.

15 AGD, Surveillance Devices Act 2004 Report for the year ending 30 June 2011, p. 15. The total figure in the report was 77; however, adding the figures in the table equals 82.

16 AGD, Surveillance Devices Act 2004 Report for the year ending 30 June 2012, p. 15.

159

Page 10

Annual report on the Commonwealth Ombudsman's activities under Part V of the Australian Federal Police Act 1979 2.14 The Annual report on the Commonwealth Ombudsman's activities under Part V of the Australian Federal Police Act 1979 for the period 1 Jul 2011 to 30 June 2012 was tabled in the House of Representatives on 28 November 2012 and in the Senate on the 29 November 2012.

2.15 Part V of the Australian Federal Police Act 1979 (AFP Act) confers to the Ombudsman oversight responsibilities in respect of the way that the AFP handles complaints about it and its members.17

2.16 Pursuant to subsections 40XA and 40XD of the AFP Act, the Ombudsman conducts annual reports and reviews of AFP complaint-handling procedures and processes by undertaking an inspection of records. For the 2011-12 financial year, the Ombudsman conducted a two-part review inspection at the offices of both the AFP and the Ombudsman (using the AFP terminal AFPNet18). The review covered all AFP complaint issues closed in the review period, 1 September 2010 to

31 December 2011.19

2.17 Part one of the review conducted by the Ombudsman covered complaints closed during the period 1 September 2010 to 31 August 2011 and part two covered complaints closed during 1 September 2011 to 31 December 2011. The rationale behind conducting a two-part review was to enable the Ombudsman to examine whether reforms to AFP Professional Standards (PRS) processes have improved its complaint handling, with the expectation that part two would exhibit an improvement in timeliness.20 The review examined 1275 complaints closed within the review period

covering 2797 complaint issues21 (857 cases in part one covering 1927 complaint issues and in part two, 418 complaints covering 870 complaint issues).22 The review examined 132 complaints in detail (92 complaints from part one and 40 complaints

17 Annual report on the Commonwealth Ombudsman's activities under Part V of the Australian Federal Police Act 1979 for the period 1 July 2011 to 30 June 2012, p. 1.

18 The AFPNet is a system that was installed in 2012 which allows the Ombudsman's office direct access to AFP complaint information.

19 Annual report on the Commonwealth Ombudsman's activities under Part V of the Australian Federal Police Act 1979 for the period 1 July 2011 to 30 June 2012, p. 8

20 Annual report on the Commonwealth Ombudsman's activities under Part V of the Australian Federal Police Act 1979 for the period 1 July 2011 to 30 June 2012, p. 1.

21 A complaint may have multiple issues that need to be investigated, such as a complaint about multiple AFP officers involved in one incident. One incident may also involve a complaint about multiple issues, for example, excessive use of force, discourtesy and warrant administration.

22 Annual report on the Commonwealth Ombudsman's activities under Part V of the Australian Federal Police Act 1979 for the period 1 July 2011 to 30 June 2012, pp 1-2 and 9.

160

Page 11

from part two) and selected 16 complaints as case studies. Of the sampled complaints, 92% were external, mostly from members of the public.23

2.18 Key findings in the Ombudsman's review included: establishment rates for external complaints (publicly-generated complaints) being significantly lower than for internally-generated complaints; the AFP's initiatives to improve timeliness of dispute resolution have had an impact but there remains a backlog of old complaints which need to be cleared so resources can be redirected to new complaints;24 the negligible establishment rate of external complaints about excessive use of force against a person; better management of conflicts of interests that may arise in the course of complaint investigations; and regular communication with complainants.25 The review noted that it was not surprising that ACT policing (30.2%) and aviation security (22.6%) were the

two most functional streams for complaints as these areas have most frequent contact with members of the public.26

2.19 The establishment rate for internal complaints was 43% (679 of 1546 complaint issues established) compared to 11% (140 of 1251 complaint issues established) for external complaints.27 In contrast, the figures reported in the previous review was higher for the establishment rate for internal complaints (at 60% or 139 of 232 complaint issues established) and lower for the external complaints (at 7% or 30 of 415 complaint issues established).28

2.20 The top five complaint issues established, and which accounted for 70% of all issues established, were: 'diligence failure'; 'serious breach of the AFP Code of Conduct'; 'supervision failure'; 'failure to comply with direction or procedure'; and 'breach of the AFP Code of Conduct'.29

23 Annual report on the Commonwealth Ombudsman's activities under Part V of the Australian Federal Police Act 1979 for the period 1 July 2011 to 30 June 2012, pp 9-10.

24 Annual report on the Commonwealth Ombudsman's activities under Part V of the Australian Federal Police Act 1979 for the period 1 July 2011 to 30 June 2012, pp 3, 11 and 43-44. Although the review noted timeliness in resolving complaints has improved during the reporting period, it remains a concern.

25 Annual report on the Commonwealth Ombudsman's activities under Part V of the Australian Federal Police Act 1979 for the period 1 July 2011 to 30 June 2012, p. 11.

26 Annual report on the Commonwealth Ombudsman's activities under Part V of the Australian Federal Police Act 1979 for the period 1 July 2011 to 30 June 2012, p. 11.

27 Annual report on the Commonwealth Ombudsman's activities under Part V of the Australian Federal Police Act 1979 for the period 1 July 2011 to 30 June 2012, pp 3-4 and 16. Figures in Table 4 provide a comparison of the internal and external establishment rates for the past four reviews. Note the figures presented in Table 4 slightly differ from those on pages 3 and without an explanation.

28 Annual report on the Commonwealth Ombudsman's activities under Part V of the Australian Federal Police Act 1979 for the period 1 July 2011 to 30 June 2012, pp 3-4.

29 Annual report on the Commonwealth Ombudsman's activities under Part V of the Australian Federal Police Act 1979 for the period 1 July 2011 to 30 June 2012, pp 17-18.

161

Page 12

2.21 In relation to 'use of force complaints', the report noted that of the 246 complaint issues coded as 'use of force', 218 related to excessive use of force on an individual.30 Of these, only two were established, with one an internal complaint and the other an external complaint. The Ombudsman's office considered the investigation of the external complaint was 'thorough and of a high standard'31. In many of the cases examined, the report noted there was insufficient evidence available for the complaint to be established.32

2.22 Another area of review by the Ombudsman was the management of conflicts of interests. In five of the cases examined by the Ombudsman, a conflict of interest or potential conflict of interest was identified in the course of a complaint investigation. The case studies in the annual report highlighted: the importance of an investigation officer recognising a conflict of interest and taking appropriate steps to resolve the matter33; and the importance of appointing an independent investigator who is impartial, particularly when dealing with difficult complainants.34

2.23 The report noted regular contact with complainants was not consistent nor was there any indication of how often complainants were contacted. The report also commented that regularly updating a complainant is good practice.35 Of the 132 cases examined, in only 20% of cases were complainants regularly contacted by an investigating officer, and the regularity of contact varied between once every month to every two months.36 The report recommended introducing minimum standards for frequency of contact with complainants during the investigation process.37

2.24 With regard to 'obtaining a complainant's version of events' and 'witnesses and evidence', the Ombudsman continued to express concerns that decision-makers

30 In the AFP's response to the Ombudsman's report, the AFP noted that where use of force by an AFP member results in criminal charges, the complaint against the AFP member is coded as criminal conduct rather excessive use of force: refer Annual report on the Commonwealth Ombudsman's activities under Part V of the Australian Federal Police Act 1979 for the period 1 July 2011 to 30 June 2012, p. 19.

31 Annual report on the Commonwealth Ombudsman's activities under Part V of the Australian Federal Police Act 1979 for the period 1 July 2011 to 30 June 2012, p. 19. See Case study 3, Established use of force, pp 19 and 21-22.

32 Annual report on the Commonwealth Ombudsman's activities under Part V of the Australian Federal Police Act 1979 for the period 1 July 2011 to 30 June 2012, p. 19.

33 Annual report on the Commonwealth Ombudsman's activities under Part V of the Australian Federal Police Act 1979 for the period 1 July 2011 to 30 June 2012, p. 29.

34 Annual report on the Commonwealth Ombudsman's activities under Part V of the Australian Federal Police Act 1979 for the period 1 July 2011 to 30 June 2012, pp 30-31.

35 Annual report on the Commonwealth Ombudsman's activities under Part V of the Australian Federal Police Act 1979 for the period 1 July 2011 to 30 June 2012, p. 28.

36 Annual report on the Commonwealth Ombudsman's activities under Part V of the Australian Federal Police Act 1979 for the period 1 July 2011 to 30 June 2012, p. 28.

37 Annual report on the Commonwealth Ombudsman's activities under Part V of the Australian Federal Police Act 1979 for the period 1 July 2011 to 30 June 2012, p. 28.

162

Page 13

exhibited a tendency to accept the evidence of an AFP officer without sufficient attempts to interview other possible third party witnesses. The Ombudsman's review of AFP records found that in only 37% of cases (34 of 92 cases) in part one and 57% of cases (23 of 40 cases) in part two, did the investigator speak to the complainant prior to speaking with the AFP officer under investigation.38 The report commented that the lack of independent sources of evidence undermines the veracity of an investigation outcome.39

2.25 The AFP's response to the Ombudsman's six recommendations were summarised in the report: the AFP accepted and / or advised that it had processes to address five of the six recommendations.40 The AFP did not agree with recommendation four which stated that all potential witnesses and sources of evidence should be identified and subsequently interviewed or obtained.41

Senator the Hon. Ian Macdonald Chair

38 Annual report on the Commonwealth Ombudsman's activities under Part V of the Australian Federal Police Act 1979 for the period 1 July 2011 to 30 June 2012, pp 32-33.

39 Annual report on the Commonwealth Ombudsman's activities under Part V of the Australian Federal Police Act 1979 for the period 1 July 2011 to 30 June 2012, pp 32-34.

40 Annual report on the Commonwealth Ombudsman's activities under Part V of the Australian Federal Police Act 1979 for the period 1 July 2011 to 30 June 2012, pp 5-7.

41 Annual report on the Commonwealth Ombudsman's activities under Part V of the Australian Federal Police Act 1979 for the period 1 July 2011 to 30 June 2012, p. 6.

163

164

APPENDIX 1

Reports tabled during the period 1 November 2012 and 30 April 2013 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 (received in Senate out of

session)

Date tabled in the House of Reps

Attorney-General's portfolio

Department/authority - Report for 2011-12

Aboriginal and Torres Strait Islander Social Justice Commissioner -

- Native Title Report 2012

No legislative requirement to table the report.

31.10.12/ 31.10.12

5.2.13 29.11.12

Aboriginal and Torres Strait Islander Social Justice Commissioner -

- Social Justice Report 2012

13.11.12/ 13.11.12

5.2.13 29.11.12

Administrative Review Council 22.10.12/

22.10.12

20.11.12 1.11.12

Audio-Visual Copyright Society Limited (Screenrights) 10.12.12/ 2.1.13

5.2.13 5.2.13

Australian Crime Commission (ACC) Board 26.11.12/

26.11.12

5.2.13 (18.12.12)

5.2.13

Australian Customs and Border Protection Service - Report for 2011-12 - Correction 6.2.13/ 7.2.13

26.2.13 14.2.13

165

Page 16

Australian Human Rights Commission -

- Report No.56 - Report of an inquiry into complaints by Sri Lankan refugees in immigration detention with adverse security assessments.

- Report No.57 - ST v Endeavour Energy

6.11.12/ 6.11.12

27.11.12 26.11.12

Australian Security Intelligence Organisation - Report for 2011-12 - Corrigendum 12.11.12/ 12.11.12

28.11.12 28.11.12

CrimTrac Agency - Report for 2011-12 - Corrigendum. 12.11.12/ 12.11.12

5.2.13 (18.12.12)

5.2.13

High Court of Australia 1.11.12/

1.11.12

27.11.12 26.11.12

National Native Title Tribunal 19.10.12/

19.10.12

20.11.12 1.11.12

Operation of an act/program

Australian Federal Police Act 1979 - Annual report for 2011-12 on the Commonwealth Ombudsman's activities under Part V of the Australian Federal Police Act 1979.

29.11.12 28.11.12

Crimes Act 1914 - Authorisations for the acquisition and use of assumed identities - Australian Crime Commission - Report for 2011-12.

26.11.12/ 26.11.12

5.2.13 5.2.12

Criminal Code Act 1995 - Control orders and preventive detention orders - Report for 2011-12.

21.11.12/

21.11.12

5.2.13 (14.1.13)

5.2.13

National Security Information (Criminal and Civil Proceedings) Act 2004 - Non-disclosure and witness exclusion certificates - Report for 2011-12.

21.11.12/

21.11.12

5.2.13 (14.1.13)

5.2.13

Surveillance Devices Act 2004 - Report for 2011-12 on the operation of the Act. 4.10.12/ 4.10.12

5.2.13 29.11.12

Telecommunications (Interception and Access) Act 1979 - Report for 2011-12 on the operation of the Act.

4.10.12/ 4.10.12

5.2.13 29.11.12

166

Page 17

Immigration and Citizenship portfolio

Migration Act 1958

Section 486O - Assessment of detention arrangements - Personal identifiers: 796/12, 799/12, 810/12, 816 and 817/12, 828/12, 830 to 832/12, 838/12, 842 and 843/12, 849/12, 859/12, 861/12, 867/12, 870/12, 875 and 876/12, 947/12, 960/12, 968 and 969/12, 973/12, 983/12, 1012/12, 1020/12, 1041/12, 1045/12, 1053/12, 1055/12, 1057 to 1059/12, 1062/12, 1064/12, 1073 to 1100/12, 1106/12, 1118/12, 1128/13 and 1149/13 -

- Commonwealth Ombudsman's reports.

- Government response to Ombudsman's reports, dated 14 March 2013.

7.3.13/ 8.3.13

20.3.13 20.3.13

Section 486O - Assessment of detention arrangements - Personal identifiers: 750/12, 783/12, 792/12, 793/12, 813/12, 823/12, 825/12, 836/12, 854/12, 855/12, 858/12, 864/12, 900/12, 967/12, 972/12, 984/12, 985/12, 989/12 to 1011/12, 1013/12 to 1019/12, 1021/12 to 1025/12, 1028/12 to 1040/12, 1042/12, 1043/12, 1050/12 to 1052/12 and 1056/12 -

- Commonwealth Ombudsman's reports.

- Government response to Ombudsman's reports, dated 22 November 2012.

16.11.12/ 19.11.12

28.11.12 28.11.12

Reports for the period 1 July to 31 October 2012

- Section 91Y - Protection visa processing taking more than 90 days.

- Section 440A - Conduct of Refugee Review Tribunal reviews not completed within 90 days.

14.12.12/ 14.12.12

6.2.13 6.2.13

167

168

The Senate

Rural and Regional Affairs

and Transport

Legislation Committee

Annual reports (No. 2 of 2013)

December 2013

169

 Commonwealth of Australia 2013

ISBN 978-1-74229-916-7

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.

170

Membership of the Committee Members

Senator the Hon Bill Heffernan LP, New South Wales Chair

Senator Glenn Sterle ALP, Western

Australia

Deputy Chair

Senator the Hon Ronald Boswell NATS, Queensland

Senator Sean Edwards LP, South Australia

Senator Sue Lines ALP, Western

Australia

Senator Rachel Siewert AG, Western Australia

Participating Members

Senator Abetz Senator Back Senator Bernardi Senator Bilyk Senator Birmingham Senator Bishop Senator Boswell Senator Boyce Senator Brandis Senator Brown Senator Bushby Senator Cameron Senator Carr Senator Cash Senator Colbeck Senator Collins Senator Conroy

Senator Cormann Senator Dastyari Senator Di Natale Senator Eggleston Senator Farrell Senator Faulkner Senator Fawcett Senator Fierravanti-Wells Senator Fifield Senator Furner Senator Gallacher Senator Hanson-Young Senator Johnston Senator Kroger Senator Ludlam Senator Ludwig

Senator Lundy Senator Macdonald Senator Madigan Senator Marshall Senator Mason Senator McEwen Senator McKenzie Senator McLucas Senator Milne Senator Moore Senator Nash Senator Parry Senator Payne Senator Peris Senator Polley Senator Pratt Senator Rhiannon Senator Ronaldson

Senator Ruston Senator Ryan Senator Scullion Senator Seselja Senator Singh Senator Sinodinos Senator Smith Senator Stephens Senator Thorp Senator Tillem Senator Urquhart Senator Waters Senator Whish-Wilson Senator Williams Senator Wong Senator Wright Senator Xenophon

171

Committee Secretariat

Mr Tim Watling, Secretary Ms Kirsty Cattanach, 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_and_Regi onal_Affairs_and_Transport/Annual_Reports

172

Table of Contents

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

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

List of Abbreviations ........................................................................................vii

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

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

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

Purpose of annual reports ....................................................................................... 1

Reports referred to the committee .......................................................................... 2

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

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

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

Comments on reports .............................................................................................. 4

Chapter 2.............................................................................................................. 5

Annual reports of agencies ...................................................................................... 5

Prescribed Agencies ............................................................................................. 10

Other agencies ...................................................................................................... 12

Conclusion ............................................................................................................ 14

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

Annual reports referred during the period 1 November 2012 to 30 April 2013 .................................................................................................................................. 15

Agriculture, Fisheries and Forestry portfolio ....................................................... 15

Infrastructure and Transport Portfolio .................................................................. 17

Regional Australia, Local Government, Arts and Sport portfolio ....................... 18

173

174

List of Abbreviations

AAO Administrative Arrangements Order

AFMA Australian Fisheries Management Authority

AFL Australian Football League

APVMA Australian Pesticides and Veterinary Medicines Authority

CAC Act Commonwealth Authorities and Companies Act 1997

CAC Orders Commonwealth Authorities (Annual Reporting) Orders 2011; Commonwealth Companies (Annual Reporting) Orders 2011

CRDC Cotton Research and Development Corporation

DAFF Department of Agriculture, Fisheries and Forestry

EPBC Act Environment Protection and Biodiversity Conservation Act 1999

FMA Act Financial Management and Accountability Act 1997

FOI Act Freedom of Information Act 1982

FRDC Fisheries Research and Development Corporation

GRDC Grains Research and Development Corporation

GWRDC Grape and Wine Research and Development Corporation

KPIs Key Performance Indicators

LiveCorp Australian Livestock Export Corporation Limited

PAES Portfolio Additional Estimates Statements

PBS Portfolio Budget Statements

PM&C Department of Prime Minister and Cabinet

R&D Research and development

RD&E Research development and extension

175

Requirements for Annual Reports Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies

RIRDC Rural Industries Research and Development Corporation

SRDC Sugar Research and Development Corporation

The Standards Printing standards for documents presented to Parliament

TSPZJA Torres Strait Protected Zone Joint Authority

WEA Wheat Exports Australia

WHS Act Work Health and Safety Act 2011

176

Chapter 1

Overview

1.1 The Senate Rural and Regional Affairs and Transport Legislation Committee's (the Committee) second report on annual reports for 2013. It provides an overview of the committee's examination of annual reports for the 2011-12 financial year.

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.

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.

177

Reports referred to the committee

1.4 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, Fisheries and Forestry Portfolio

• Australian Fisheries Management Authority—Report for 2011-12;

• Australian Livestock Export Corporation Limited (LiveCorp) —Report

for 2011-12;

• Australian Pesticides and Veterinary Management Authority—Report for 2011-12;

• Cotton Research and Development Corporation—Report for 2011-12;

• Dairy Australia Limited—Report for 2011-12;

• Fisheries Research and Development Corporation—Report for 2011-12;

• Grain Research and Development Corporation—Report for 2011-12;

• Grape and Wine Research and Development Corporation—Report for

2011-12;

• Rural Industries Research and Development Corporation—Report for

2011-12;

• Sugar Research and Development Corporation—Report for 2011-12;

and

• Wheat Exports Australia—Report for 2011-12.

1.5 A complete list of reports referred to the committee during the period 1 November 2012 to 30 April 2013 (including those not examined) appears 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 seven documents were referred to the committee but have not been examined:

• Australian Meat and Live-stock Industry Act 1997—Live-stock mortalities during exports by sea—Report for the reporting period 1 July to 31 December 2012;

• Australian Meat and Live-stock Industry Act 1997—Report to Parliament

in relation to the Funding Agreement 2010-14 with the Australian Livestock Export Corporation (LiveCorp);

• Dairy Produce Act 1986—Report to Parliament in relation to the Deed of

Agreement 2007-13 with Dairy Australia Limited;

178

• Local Government (Financial Assistance) Act 1995—Report for 2009-10

Local Government National Report;

• Sydney Airport Demand Management Act 1997—Quarterly report on the maximum movement limit for Sydney Airport for the period 1 July to 30 September 2012;

• Sydney Airport Demand Management Act 1997—Quarterly report on the

maximum movement limit for Sydney Airport for the period 1 October to 31 December 2012; and

• Torres Strait Fisheries Act 1984—Torres Strait Protected Zone Joint

Authority—Report for 2011-12.

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 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 28 June 2012;

• 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; 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 annual reports

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

1.9 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.1 Those agencies reporting under the CAC Act are required to provide their annual reports to

1 Department of the Prime Minister and Cabinet, Requirements for Annual Reports, 28 June 2012, p. 2.

179

the Minister by the 15th day of the fourth month after the end of the financial year.2 Where the financial year ends on 30 June, this deadline translates to 15 October.

1.10 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. 3

1.11 The committee notes that all Commonwealth authorities' annual reports examined in this report were not sent to the Minister by the 15 October.

1.12 Although not subject to the timeframes in the CAC Act or Financial Management and Accountability Act 1997 (FMA Act), the committee notes a significant delay in the tabling of the Torres Strait Protected Zone Joint Authority (TSPZJA) Annual Report 2009-10, which was tabled in the Senate on 5 February 2013. The committee encourages the TSPZJA to produce its annual report in a more timely manner.

Comments on reports

1.13 The committee considers that the Cotton Research and Development Corporation's Annual Report 2011-12 and the Rural Industries Research and Development Corporation Annual Report 2011-12 have fulfilled the reporting requirements to a high standard.

2 Commonwealth Authorities and Companies Act 1997, s. 9.

3 Department of the Prime Minister and Cabinet, Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies, July 2011, p. 2.

180

Chapter 2

Annual reports of agencies

2.1 This chapter examines, in greater detail, the annual reports that have been received during the period 1 November 2012 to 30 April 2013. While it is usual practice for selected reports to be examined, the committee decided to examine all eleven annual reports received from the Agriculture, Fisheries and Forestry portfolio.

Cotton Research and Development Corporation (CRDC)

2.2 The CRDC lists its Key Performance Indicators (KPIs) in table format, which identifies whether indicators were achieved, partially achieved, or not achieved. For KPIs that were either partially achieved or not achieved, CRDC has provided an explanation as to why. The committee notes that a majority of the CRDC's KPIs were achieved.1

2.3 The committee is pleased to note that, following comments made in its previous reports, the CRDC has improved its reporting under the Freedom of Information Act 1982 (FOI Act), the Environmental Protection and Biodiversity Conservation Act 1999 (EBPC Act) and the Work Health and Safety Act 2011 (WHS Act).2 Reporting under the EPBC Act contains information in a helpful table, which includes examples of research initiatives that provide measurable environmental, economic and social benefits to the cotton industry and the wider community.3

2.4 The CRDC has provided an informative executive summary covering the operating context, financial performance, and the corporate operations of the Corporation.4 The committee notes that the cotton crop in 2011-12 produced five million bales, which exceeded the previous record of four million bales.5

2.5 The committee notes the following research and development highlights for CRDC:

• the Cotton Industry Succession and Professional Development-A review of Employer and Industry Needs in the Agribusiness Sector was completed;

• a new project commenced with the Rural Innovation Research Group at the University of Melbourne and the Workplace Research Centre at the University of Sydney to establish a workforce development plan for the cotton industry; and

1 Cotton Research and Development Corporation, Annual Report 2011-12, pp 124-131.

2 Cotton Research and Development Corporation, Annual Report 2011-12, pp 80-81 and 136.

3 Cotton Research and Development Corporation, Annual Report 2011-12, p. 136.

4 Cotton Research and Development Corporation, Annual Report 2011-12, pp 2-28

5 Cotton Research and Development Corporation, Annual Report 2011-12, pp 2, 8-9.

181

• the Australian cotton industry water story-A decade of research and development was published.6

2.6 The committee considers the CRDC's report on performance to be of a very high standard, and commends the CRDC for consistently producing clear, concise and well-constructed annual reports over a number of years.

Fisheries Research and Development Corporation (FRDC)

2.7 The FRDC has again provided a helpful compliance index that includes separate sections for the different reporting requirements. The committee is pleased to note that, following comments in previous reports, the compliance index is more closely aligned with the reporting requirements in the Primary Industries and Energy Research and Development Act 1989 (PIERD Act).7 The FRDC has also made explicit directors' responsibilities under section 9 of the Commonwealth Agencies and Companies Act 1997 (the CAC Act) for the preparation and content of the report of operations. FRDC also specified in its report that the report was made in accordance with a resolution of the directors.8

2.8 The committee is disappointed to note that the FRDC has not improved its reporting on performance, despite comments in previous reports. The report on performance is presented in tables with a column titled 'achievements', which provides a description of the activities involved and does not contain an assessment of performance. The committee reminds the FRDC that an assessment on the effectiveness of operations should also be included.9

2.9 The FRDC reported that the future of the aquaculture industry is uncertain due to the public perception of the global industry's overall sustainability. In response, the FRDC Board announced the four following strategies:

(i) industry unity—developing consensus on fishing and aquaculture through unified messages on key science issues;

(ii) media relations—providing the FRDC's science outputs in a format better suited for media use;

(iii) community relations—engaging with regional and urban communities to showcase positive science stories; and

(iv) stakeholder advocacy—to work with both allies and detractors to develop an agreed 'common language' on issues where there are differences of opinion on the scientific evidence.10

6 Cotton Research and Development Corporation, Annual Report 2011-12, pp 2-3, 44 and 54.

7 Fisheries Research and Development Corporation, Annual Report 2011-12, pp 160-164.

8 Fisheries Research and Development Corporation, Annual Report 2011-12, p. i.

9 Fisheries Research and Development Corporation, Annual Report 2011-12, pp 27-28, 39-40, 50, 55, and 64.

10 Fisheries Research and Development Corporation, Annual Report 2011-12, pp 6-7.

182

Grains Research and Development Corporation (GRDC)

2.10 The committee found the GRDC's report to be informative and very well presented. The compliance index is helpfully grouped according to legislative reporting requirements, which the committee finds helpful when assessing GRDC's reporting compliance.11

2.11 The committee notes the commencement of GRDC's new strategic Research and Development (R&D) Plan for 2012-17. The Plan has six core themes:

(i) meeting market requirements;

(ii) improving crop yield;

(iii) protecting your crop;

(iv) advancing profitable farming systems;

(v) improving your farm's resource base; and

(vi) building skills and capacity.12

2.12 The committee notes GRDC's first phone application (app), The Weeds: the Ute Guide, which was launched at a committee meeting of the National Integrated Weed Management Initiative in Adelaide in November 2011. The GRDC reported that the app includes the most common annual, biannual and perennial weeds of the southern and western grain-growing regions. It also contains a calendar for each weed, which shows the time of the year the weed is likely to be present in the paddock and where possible, photographs of the weed at various growth stages to assist with identification.13

Grape and Wine Research Development Corporation (GWRDC)

2.13 The GWRDC has provided an informative report. The committee observed that the layout of report reduced the readability of the report and suggests minimising the use of columns in future reports.

2.14 The committee is pleased to note that, following comments in its previous report, GWRDC has included, within the corporate governance section, the attendance of directors at board committee meetings.14

2.15 The committee notes that the Wine Grape Growers Association and the Winemakers' Federation of Australia jointly proposed to merge GWRDC with Wine Australia Corporation to create a single statutory authority. The GWRDC reported in in the Executive Director's overview that:

11 Grain Research and Development Corporation, Annual Report 2011-12, p. 187.

12 Grain Research and Development Corporation, Annual Report 2011-12, p. 18.

13 Grains Research and Development Corporation, Annual Report 2011-12, p. 41.

14 Grape and Wine Research and Development Corporation, Annual Report 2011-12, pp 54-55.

183

…the GWRDC Board supported the merger while identifying the need for a continued focus on the management of and investment in RD&E across the whole value chain.15

2.16 The proposed merger of GWRDC and Wine Australia was approved on 10 December 2012 by the then Minister for Agriculture, Fisheries and Forestry, Senator the Hon Joe Ludwig. It is anticipated that the merged entity will be operational from July 2014.16

2.17 The committee notes that the grape yields for 2011 were lower due to the south east region receiving heavy and prolonged rainfalls late in the session, which resulted in fewer bunches and smaller sized fruit.17

Rural Industries Research and Development Corporation (RIRDC)

2.18 The committee is pleased to note that the RIRDC's reporting under the EPBC Act, FOI Act and the National Disability Strategy is of a high standard.18

2.19 The committee also notes that RIRDC consulted with the Australian Government and industry stakeholders to develop the new Corporate Plan 2012-17. From consultations, the following priority areas were identified:

• the importance of productivity growth to support rural industry profit and sustainability;

• the need to identify emerging issues and coordinate research into the impact on the rural sector;

• ensuring new industry (and innovation) potential is explored in a rigorous way and knowledge gained is shared;

• applying a life-cycle approach to supporting rural industries;

• collaborating to respond to cross sector research development and extension (RD&E) needs;

• supporting new industries;

• maintaining and building rural research capacity;

• investing in rural sector people; and

• enhancing the adoption of RD&E. 19

15 Grape and Wine Research and Development Corporation, Annual Report 2011-12, p. 19.

16 Winemakers' Federation of Australia, 'Merger of statutory authorities', media release, 11 December 2012. http://www.wfa.org.au/resources/1/Media%20releases/Wine%20industry%20welcomes%20pla ns%20for%20new%20authority.pdf

17 Grape and Wine Research and Development Corporation, Annual Report 2011-12, p. 18.

18 Rural Industries Research and Development Corporation, Annual Report, 2011-12, pp 17, 30-33 and 155.

19 Rural Industries Research and Development Corporation, Annual Report 2011-12, pp 9-10.

184

2.20 The RIRDC reported that three overarching goals were also set to guide investment and delivery against the priorities contained in the 2012-17 Corporate Plan. The goals are:

(i) promote leadership and innovation in the rural sector;

(ii) increase profit and productivity in rural industries; and

(iii) enhance sustainability across the rural sector.20

2.21 The committee commends the RIRDC for its comprehensive review of its functions, activities, and outcomes in its annual report for 2011-12. The use of tables and graphs presented the information in a logical and easy to understand format.21

Sugar Research and Development Corporation (SRDC)

2.22 The committee notes that the SRDC has comprehensively reported on the factors, trends and events that influenced its performance in 2011-12 and has included an overview of future challenges and opportunities.22

2.23 The committee is disappointed to find that, following comments made in its previous reports, the SRDC has again provided an incomplete compliance index, without which the committee finds it difficult to assess whether or not all reporting requirements have been met.23

2.24 The committee is also disappointed to note that the SRDC has not fulfilled its reporting requirements under the FOI Act. The SRDC has not included the Information Publication Scheme statement. The committee encourages the SRDC to look carefully at the reporting requirements under this legislation when compiling upcoming reports.24

2.25 The SRDC reported that a new Research, Development and Extension Plan for 2012-17 was developed and approved on 30 June 2012 by the then Minister for Agriculture, Fisheries and Forestry the Hon Senator Joe Ludwig.25

20 Rural Industries Research and Development Corporation, Annual Report 2011-12, p. 10.

21 Rural Industries Research and Development Corporation, Annual Report, 2011-12, pp 26-30, 32-34, 67-148.

22 Sugar Research and Development Corporation, Annual Report 2011-12, p. 9.

23 Sugar Research and Development Corporation, Annual Report 2011-12, p. 151. For an example of a complete compliance index refer to Grains Research and Development Corporation Annual Report 2011-12

24 Sugar Research and Development Corporation, Annual Report 2011-12, p. 88.

25 Sugar Research and Development Corporation, Annual Report 2011-12, p. 5.

185

Prescribed Agencies

Australian Fisheries Management Authority (AFMA)

2.26 AFMA has provided a comprehensive overview of the major factors likely to impact on fisheries management over the next four years, which included:

• global economic pressures;

• the cost effectiveness of fisheries management;

• climate change; and

• Australian fish stock levels. 26

2.27 The committee notes that on 3 February 2012, AFMA marked its 20th anniversary. AFMA reported that during the 20 years it has observed many changes; including the move away from single species management of major fisheries to the current statutory management plans with output controlled management systems.27

2.28 AFMA reported that the Torres Strait Tropical Rock Lobster Fishery was the most valuable commercial fishery in the Torres Strait during 2011 with 704 tonnes harvested.28

2.29 The committee is pleased to again note that AFMA's compliance index is well presented and is helpfully separated by legislative reporting requirements.29

2.30 The committee commends AFMA on its consistently high standard of reporting, including under the FOI, EPBC and WHS Acts. AFMA's report on performance is thorough, well-structured and contains relevant case studies. AFMA uses a tick symbol to indicate whether the performance indicators have been achieved, and provide explanations when targets have not been met.30

Australian Pesticides and Veterinary Medicines Authority (APVMA)

2.31 The committee notes that Ms Bennet-Jenkins' term as Chief Executive Officer expired at the end of 2012.31 Ms Kareena Arthy was appointed for a five year term on 18 December 2012 by the then Minister for Agriculture, Fisheries and Forestry Senator the Hon Joe Ludwig.32

26 Australian Fisheries Management Authority, Annual Report 2011-12, pp 4-6.

27 Australian Fisheries Management Authority, Annual Report 2011-12, p. vi.

28 Australian Fisheries Management Authority, Annual Report 2011-12, p. 3.

29 Australian Fisheries Management Authority, Annual Report 2011-12, pp 150-152.

30 Australian Fisheries Management Authority, Annual Report 2011-12, pp 12-30 and 143-145.

31 Australian Pesticides and Veterinary Medicines Authority, Annual Report 2011-12, p. 3.

32 Australian Pesticides and Veterinary Medicines Authority, 'New CEO appointed', media release, 18 December 2012. http://www.apvma.gov.au/news_media/news/2012/2012-12-18_new_ceo.php

186

2.32 The committee is pleased to note that, following comments in its previous report, APVMA has tabulated its performance reporting data, which has improved the readability of the APVMA report.33

2.33 However, the committee is disappointed to note that the APVMA compliance index states that it has been prepared in accordance with the Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies (Requirements for Annual Reports), as revised by the Department of the Prime Minister and Cabinet (PM&C) in July 2011.34 The committee reminds APVMA that the Requirements for Annual Reports are revised annually by PM&C, with the current Requirements for Annual Reports released by PM&C in June 2012. It is the committee's opinion that reporting agencies remain up to date with changes to the Requirements for Annual Reports.

2.34 Finally, the committee notes that a number of errors were found in APVMA's compliance index, including referencing incorrect pages numbers.35 Nonetheless, the omissions were not so problematic to the committee that it had difficulty assessing the report against the relevant requirements.

Wheat Exports Australia (WEA)

2.35 The committee notes that this is WEA's last annual report, as Parliament passed the Wheat Export Marketing Amendment Bill 2012, which will transition the wheat export industry to full deregulation. The Wheat Export Accreditation Scheme and the Wheat Export Charge were abolished on 10 December 2012 and WEA ceased operating on 31 December 2012.36

2.36 The legislative changes were as a result of the Australian Government's response to the Productivity Commission's Inquiry into Wheat Export Marketing Arrangements. The Australian Government agreed with the Productivity Commission's recommendations and proposed a three stage approach to the full

deregulation of the wheat industry. The three stages are:

(i) the application of a 'lighter-touch' Scheme from October 2011;

(ii) the abolition of the Wheat Export Accreditation Scheme and the Wheat Export Charge on 30 September 2012, with the winding-up of the WEA by 31 December 2012; and

33 Australian Pesticides and Veterinary Medicines Authority, Annual Report 2011-12, pp 17-119.

34 Australian Pesticides and Veterinary Medicines Authority, Annual Report 2011-12, p. 233.

35 Australian Pesticides and Veterinary Medicines Authority, Annual Report 2011-12, pp 233-235. Incorrect page numbers were provided for the Alphabetical Index (pp XX instead of pp 233-235), Advertising and Marketing Research (p. 140 instead of p. 137) and the Audit report of the Financial Statements (pp 133-134 instead of pp 139-140).

36 Wheat Exports Australia, 'WEA to close on 31 December 2012', media release, 3 December 2012. http://www.wea.gov.au/PDF/media/media%20releases/MR_billpassed.pdf

187

(iii) the establishment of a voluntary code of conduct by

30 September 2014 prescribing continuous disclosure rules for port terminal operators that export wheat.37

2.37 The committee notes that WEA's report on performance has again been fulfilled to a high standard. WEA's reporting on performance is helpfully presented in tabular form allowing for comparisons to be made between targets and actual performance.38

2.38 WEA reported a record national wheat crop of 29.5 million tonnes for the 2011-12 growing season of which 20.4 million tonnes of wheat was exported to 34 countries, including Indonesia, South Korea and Vietnam.39

Other agencies

Australian Livestock Export Corporation Limited (LiveCorp)

2.39 The LiveCorp Annual Report 2011-12 was prepared in accordance to the requirements set out in the Australian Meat and Live-stock Industry Act 1997 and the Corporations Act 2001.

2.40 LiveCorp reported that 2011-12 was '…a time of significant challenge, development and opportunity for the livestock export industry', which included:

• the suspension of cattle trade to Indonesia;

• the implementation of the Exporter Supply Chain Assurance System (ESCAS);

• declining number of livestock exports to all markets;

• declining revenue base; and

• staffing changes in the Chief Executive Officer position. 40

2.41 The committee notes that the ESCAS framework was initially implemented for cattle exported to Indonesia in June 2011. By the end of 2012, the ESCAS framework was to be applied to all markets taking Australian livestock. Under the ESCAS framework, Australian exporters must seek a permit to export livestock for slaughter and show that:

• animals will be handled and processed through the specified supply chains in accordance with the requirements for animal welfare established by the World Organisation for Animal Health;

• they have control of the movement of animals within the supply chain;

• they can track or account for animals throughout the supply chain; and

37 Wheat Exports Australia, Annual Report 2011-12, p. 2.

38 Wheat Exports Australia, Annual Report 2011-12, p. 14.

39 Wheat Exports Australia, Annual Report 2011-12, pp 2, 6-7.

40 Australian Livestock Export Corporation, Annual Report 2011-12, pp 2-3.

188

• they have independent audits of the supply chain, both prior to shipment and after the arrival of the animals.41

2.42 LiveCorp reported that the export volumes of both cattle and sheep dropped during 2011-12 due to the suspension of the cattle trade to Indonesia, increased competition from exporting nations, the high Australian dollar and the implementation of the ESCAS framework.42

2.43 The committee notes that 684 855 cattle were exported in 2011-12, which represented an overall decline of 15 per cent compared to 2010-11. Cattle export volumes to Indonesia and Turkey were 18 per cent and 64 per cent lower respectively compared to 2010-11, due to the suspension of cattle trade and increased global competition.43

2.44 In comparison, the committee notes that 2.6 million sheep were exported in 2011-12, which represented an overall decline of 12 per cent compared to 2010-11. The decline in sheep export volumes predominantly occurred in the Middle East and North Africa region, with Oman, the United Arab Emirates, Saudi Arabia, Kuwait and Turkey reduced their sheep volumes by on average 28 per cent compared to 2010-11. LiveCorp reported that this reduction was partially offset by Qatar and Jordon increasing their imports for 2011-12 by 45 per cent and 64 per cent respectively.44

Dairy Australia Limited

2.45 The Dairy Australia Limited Annual Report 2011-12 has been prepared in accordance to the requirements set out in the Dairy Produce Act 1986 and the Corporations Act 2001.

2.46 The committee encourages Dairy Australia Limited 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.45

2.47 The committee notes that national milk production in 2011-12 increased by 4.2 per cent to 9.48 billion litres, which is the highest annual growth rate in a decade. Dairy Australia Limited reported that this productivity positioned dairy as the third-largest rural industry in Australia.46

2.48 The committee commends Dairy Australia Limited for its reporting on performance, which is to a high standard. The report on performance is presented clearly in table format along with the program objective, the amount invested for each

41 Australian Livestock Export Corporation, Annual Report 2011-12, p. 5.

42 Australian Livestock Export Corporation, Annual Report 2011-12, p. 6.

43 Australian Livestock Export Corporation, Annual Report 2011-12, p. 6.

44 Australian Livestock Export Corporation, Annual Report 2011-12, p. 7.

45 This document can be accessed at http://www.aph.gov.au/Parliamentary_Business/Chamber_documents/Tabled_Papers/Advice_t o_government_agencies#standards

46 Dairy Australia Limited, Annual Report 2011-12, p. 8.

189

strategic objective in 2011-12 and actual performance against the Annual Operating Plan 2011-12.47

2.49 Dairy Australia Limited launched the Dairy and Sports Performance project to promote the nutritional benefits to physically active 18 to 35 year olds using a range of marketing and communication initiatives. Research indicates that 18 to 35 years old consumers typically consume 1.3 serves of dairy per day, which is below the recommended intake of three serves a day. Dairy Australia in conjunction with the Australian Institute of Sport, the Australian Football League (AFL) Victoria and Sports Dietitians Australia launched the 'Milk the Moment' campaign and the 'Powered by Milk campaign.48

2.50 The Dairy and Sports Performance project will continue with an additional campaign designed to reach parents of primary school-aged children. Dairy Australia Limited reported that the campaign has already been initiated through the AFL Victoria Auskick Program.49

Conclusion 2.51 The committee has found, under the terms of standing order 25(20), that all but two of the reports described here are apparently satisfactory. In making this assessment, the committee considers compliance with relevant reporting requirements. The committee encourages the Australian Pesticides and Veterinary Medicines Authority and the Sugar Research and Development Corporation to ensure their future annual reports are compliant with the relevant reporting requirements.

Senator Bill Heffernan

Chair

47 Dairy Australia Limited, Annual Report 2011-12, pp 23-33.

48 Dairy Australia Limited, Annual Report 2011-12, pp 28-29.

49 Dairy Australia Limited, Annual Report 2011-12, p. 28.

190

Appendix 1

Annual reports referred during the period 1 November 2012 to 30 April 2013 Agriculture, Fisheries and Forestry portfolio

Legislation Letter of

transmittal date

Date Sent to Minister

Date

received by Minister

Tabling date*

Commonwealth authorities

Cotton Research and Development Corporation— Report for 2011-12

PIERD Act 1989

CAC Act 1997

04/10/12 31/10/12 31/10/12 05/02/13

Fisheries Research and Development Corporation— Report for 2011-12

PIERD Act 1989

CAC Act 1997

29/08/12 08/11/12 08/11/12 05/02/13

Grains Research and Development Corporation— Report for 2011-12

PIERD Act 1989

CAC Act 1997

15/10/12 31/10/12 31/10/12 05/02/13

Grape and Wine Research and Development Corporation—Report for 2011-12

PIERD Act 1989

CAC Act 1997

22/08/12 29/10/12 29/10/12 05/02/13

Rural Industries Research and Development Corporation—Report for 2011-12

PIERD Act 1989

CAC Act 1997

30/09/12 31/10/12 31/10/12 27/11/12

Sugar Research and Development Corporation— Report for 2011-12

PIERD Act 1989

CAC Act 1997

30/09/12 04/12/12 04/12/12 05/02/13

Prescribed agencies

Australian Fisheries Management Authority— Report for 2011-12

Fisheries Administration Act 1991

FMA Act 1997

04/12/12 11/01/13 11/01/13 19/03/13

Australian Pesticides and Veterinary Medicines— Report for 2011-12

Agricultural and Veterinary Chemicals (Administration) Act 1992

FMA Act 1997

14/09/12 29/10/12 29/10/12 27/11/12

191

Legislation Letter of

transmittal date

Date Sent to Minister

Date

received by Minister

Tabling date*

Wheat Exports Australia— Report for 2011-12 Wheat Export Marketing Act 2008

FMA Act 1997

24/09/12 24/09/12 16/10/12 05/02/13

Other

Australian Livestock Export Corporation (LiveCorp)— Report for 2011-12

Australian Meat and Live-stock Industry Act 1997

Corporations Act 2001

n/a 22/11/12 22/11/12 28/11/12

Report to Parliament in relation to the Statutory Funding Agreement 2010-14 with the Australian Livestock Export Corporation (LiveCorp)

Australian Meat and Live-stock Industry Act 1997

n/a 21/01/13 21/01/13 12/03/13

Live-stock mortalities during exports by sea—Report for the period 1 July to 31 December 2012

Australian Meat and Live-stock Industry Act 1997

n/a 31/01/13 31/01/13 12/03/13

(received 07/03/13*)

Dairy Australia Limited— Report for 2011-12 Dairy Produce Act 1986

Corporations Act 2001

n/a 13/11/12 13/11/12 27/11/12

Report to Parliament in relation to the Deed of Agreement 2007-13 with Dairy Australia Limited

Dairy Produce Act 1986

n/a 21/01/13 21/01/13 12/03/13

Torres Strait Protected Zone Joint Authority—Report for 2009-10

Torres Strait Fisheries Act 1984 n/a 07/01/13 22/01/13 05/02/13

(received 29/01/13*)

* An asterisk denotes reports presented to the President out-of-session.

192

Infrastructure and Transport Portfolio

Legislation Letter of

transmittal date

Date Sent to Minister

Date

received by Minister

Tabling date*

Other

Sydney Airport Demand Management Act 1997— quarterly report on the maximum movement limit for the period 1 July to 30 September 2012

Sydney Airport Demand Management Act 1997

n/a 26/10/12 31/10/12 27/11/12

Sydney Airport Demand Management Act 1997— quarterly report on the maximum movement limit for the period 1 October to 31 December 2012

Sydney Airport Demand Management Act 1997

n/a 25/01/13 25/01/13 06/02/13

193

Regional Australia, Local Government, Arts and Sport portfolio

Legislation Letter of

transmittal date

Date Sent to Minister

Date

received by Minister

Tabling date*

Other

Local Government National Report 2009-10 Local Government (Financial Assistance)

Act 1995

n/a 08/02/13 08/02/13 25/02/13

(received 18/02/13*)

* An asterisk denotes reports presented to the President out-of-session.

194