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Foreign Affairs, Defence and Trade Legislation Committee - Senate Standing - Examination of annual reports - No. 2 of 2011, August 2011


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Australian Senate

Senate Legislation Committees

Reports on the exam ination of annual reports No . 2 of 2011

August 2011

Australian Senate

Senate Legislation Committees

Reports on the examination of annual reports

No.2 of 2011

August 2011

©Parliament of the Commonwealth of Australia 2011

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 2011 ), dated August 2011 ...... ...... .... ............... .... 1

Economics Committee

Annual reports (No. 2 of 2011 ), dated August 2011 ................................. 27

Education, Employment and Workplace Relations Committee

Annual reports (No. 2 of 2011 ), dated August 2011 .......... ............ .... ...... . 73

Environment and Communications Committee

Annual reports (No. 2 of 2011 ), dated August 2011 .............. ................... 91

Finance and Public Administration Committee

Annual reports (No . 2 of 2011 ), dated August 2011 .......... .......... ........... 107

Foreign Affairs, Defence and Trade Committee

Annual reports (No. 2 of 2011 ), dated August 2011 .... .... ....................... 129

Legal and Constitutional Affairs Committee

Annual reports (No. 2 of 2011 ), dated August 2011 ........ ...... ................. 161

Rural Affairs and Transport Committee

Annual reports (No. 2 of 2011 ), dated August 2011 ........ ..... .................. 189

The Senate

Community Affairs Legislation Committee

Annual reports (No. 2 of 2011)

Au gust 2011

©Commonwealth of Australia 2011

ISBN 978-1-74229-512-1

This document was produced by the Senate Community Affairs Committee Secretariat and printed by the Senate Printin g Unit, Parliament House, Canbena

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Membership of the Committee Members

Senator Claire Moore, Chair ALP , Queensland

Senator Rachel Siewert, D eputy Chair

Senator Judith Adams

AG , Western Australia

LP , Western Australia

ALP , Tasmania Senator Carol Brown

Senator Mark Furner

Senator Bridget McKenzie

Secretariat Dr Ian Holland Ms Amy Welham Ms Jo-Anne Holmes

SuiteS 1.59 Parliament House CANBERRA ACT 2600

ALP , Queensland

NATS , Victoria

Committee Secretary Research Officer Administrative Officer

Telephone: Fax: (02) 6277 3515 (02) 6277 5829 Email: community.affair s.sen(tJ}aph.gov.au

Ill

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Table of Contents

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

Chapter 1 ............................................................................................................. }

Overview ......................................................................................... ......... .................. !

Tem1s of Reference ....... ............... ................... ......... ....... .... ....... ............. ......... ... ... 1

Requiren1ents ........ ...... ..... ....... ............................... .......... .... ... ............... .............. ... 2

Annual Reports (No.1 of2011) ................... ........... ...... ................... ............. ......... 2

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

Comments made in the Senate ... ..... ............ .................. ... ....... .............. ..... ....... ... .. 3

Bodies not presenting annual reports to the Senate ... ..... ........ ......... ........ .... ........ .. .4

Chapter 2 ............................................................................................................. 5

Annual reports of non-statutory bodies, statutory office holders and non-statutory advisory panels ......................................................................................... 5

Health and Ageing Portf olio ..... ......... ...... ... ......................... .................. ... ........ ...... 5

Non-statutory advisory panel .......... ......... ... ..... ... ...... ......... .................................... 5

Non-statutory body ................ ..... ......... ....... ................... ........ ....... ..... ..................... 7

Families, Housing, Community Services and Indigenous Affairs Portfolio .... ...... 8

Statutory office holder ........ ............ ...... ............. ......... ........ ........................ .... ........ 8

Conclusion ......................................................... ............. ......... ....... .... .... ..... ...... ... I 0

Appendix 1 ......................................................................................................... 11

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

Families, Housing, Conmmnity Services and Indigenous Affairs pot1folio ........ 11

Health and Ageing portfolio ........... ........... .......... ..... .... .... ............ ...... .............. ... . 15

Human Services portfolio ...... ....... ................... ... .... ....... .... ...... ... ........ ........ ......... . 18

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Chapter 1

Overview

1.1 The committee is responsible for examining the annual reports of departments and agencies of three po11folios:

" Health and Ageing;

" Families, Housing, Community Services and Indigenous Affair s; and

" Human Services .

Terms of Reference

1.2 Under Senate Standing Order 25(20), annual reports of departments and agencies shall stand referred to the legislation conm1ittees in accordance with an allocation of depm1ments and agencies in a resolution of the Senate. Each committee shall:

(a) examine each annual report refened to it and report to the Senate whether the repo11 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 rep011 made in debate in the Senate;

(e) if the conm1ittee so detem1ines, consider annual reports of departments and budget-related agencies in conjunction with examination of estimates;

(f) report on annual rep011s 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 perfom1ance of the bodies fumishing the annual reports; and

(h) rep011 to the Senate each year whether there are any bodies which do not present annual reports to the Senate and which should present such rep011s.

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Requirements

1.3 This report was prepared pursuant to Standing Order 25(20) relating to the consideration of annual reports by committees. The Senate Order requires that the committee examine the reports referred to it to detem1ine whether they are timely and satisfactmy. In fom1ing its assessment the committee has considered whether the reports comply with the relevant legislation and guidelines in 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 Requirem ents for Annual Reports for Departments, Execlllil 'e Agencies and FMA Act Bodies, Department of Ptime Minister and Cabinet, updated June 2010

and approved by the Joint Committee of Public Accounts and Audit on 23 June 2010;

" for Commonwealth authoriti es and companies: the Commonwealth Authorities and Companies Act 1997 (the CAC Act), sections 9, 36 and 48, and the Commonwealth Authorities and Companies (Report of Op erations) Orders 2008 (CAC Orders); and

" for non-statutory bodies: the requirements are contained in the Govemment response to the report of the Senate Standing Committee on Finance and Govenunent Operations on Non-statutory bodies, Senate Han sard, 8 December 1987. pp 2643-45.

1.4 The committee notes that some of the bodies required to produce annual reports to the Senate, and w hose reports have been referred to this committee, fall outside the categories listed above. Therefore, where these reports are examined in the body of this report , examination is based on general content and infotmation from the annual reports rather than compliance with legislation and guidelines.

1.5 A table listing the atmual reports of departments, agencies and other bodies tabled in the Senate (or presented out of session to the President of the Senate), and refetTed to the committee for examination, can be found at Appendix 1. The table shows the legislation under which reports are required to be provided, tabling infom1ation, and the repmiing period during which the repoti was provided.

1.6 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 November 2010 and 30 Ap til 2011. The committee notes that these reports are referred to it for their information only and the conunittee is not required by the terms of the Standing Order to report on these:

" Aged Care Act 1997 - report on operation of the Act 2009-10 (tabled in the Senate 24/11/10)

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" Australian Competition and Consumer Commission-Report to the Australian Senate on anti-competitive and other practices by health funds and providers in relation to private health insurance for the period 1 July 2009 to 30 June 2010 (tabled in the Senate 28/02/11)

" Australian Radiation and Nuclear Safety Agency-Quarterly report for the petiod 1 October to 31 December 2010 (tabled in the Senate 01/03/11)

" Australian Radiation Protection and Nuclear Safety Agency - qua11erly rep011 for period 1 July to 30 September 2010 (tabled in the Senate 24/11/1 0)

" Centrelink and the Data-Matching Agency- Data matching program " report on progress 2007-08 (tabled in the Senate 09/02/11)

" Centrelink and the Data-Matching Agency- Data matching program " report on progress 2008-09 (tabled in the Senate 09/02/11)

" Gene Technology Regulator-Quarterly report for 1 April to 30 June 2010 (tabled in the Senate 09/02111)

" Gene Technology Regulator-Quarterly rep011 for 1 July to 30 September 20 I 0 (tabled in the Senate 09/02111)

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" Health Insurance Act 1973 - Five yearly review of the Medicare provider number legislation- report dated December 2010 (tabled in the Senate 01103/11)

" National Health and Medical Research Council (NHMRC)- NHMRC Licensing Committee-report on the operation of the Research involving Human Embryos Act 2002 for period 1 March to 31 August 2010 (tabled in the Senate 09/02111)

" Private Health Insurance Administration Council-Report for 2009-10 on the operations of the registered health benefits organisations (tabled in the Senate 09/02/11)

Annual Reports (No. 1 of 2011)

1. 7 Over the past two years it has been the practice of this conm1ittee to publish only one Report on Annual Reports per year. The committee has agreed to, from now on, publish two Reports on Annual Reports each year. This will align its practice with that of the other Senate standing committees.

1.8 To assist with this transition, and due to the majority of 2009-20 I 0 annual reports being considered in the committee's Report on Annual Reports (No. I of2011), the table at Appendix 1 includes columns indicating within which committee report the annual reports are considered .

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Timeliness of reports

1.9 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 published in 2009 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. 1

Where an agency's own legislation provides a timeframe for its annual repot1, for example 'within six months' or 'as soon as practicable after 30 June in each year', that timeframe applies . 2

1.10 The majority of annual reports referred to the committee were tabled within the specified period or shortly thereafter.

1.11 In accordance with section 3GC of the H ealth Insurance Act 1973, the Medical Training Review Panel (MTRP) is required to present a report to the Minister "as soon as practicable after 30 June", and must in any case provide it to the Minister no later than six months after the end of the period to which that report applies (meaning in this case 31 December 2010).3

1.12 The committee notes that the MTRP 2009-2010 report was not submitted to or received by the Minister until 17 April 2011 and in tum was not tabled in the Senate until 5 July 2011. These dates lie well outside those required by the statute.

1.13 The committee notes that the information contained in the MTRP 2009-20 I 0 report appears to relat e to the academic calendar year. If the MTRP is unable to report within the timeframe provided by the relevant statutes, it should seek an extension of time to report from the Minister for Health and Ageing under section 34C( 4) of the Acts InteJ]Jretation Act 1901 or alternatively approach the Depar1ment of Health and

Ageing about considering an amendment to section 3GC of the H ealth Insurance Act 1973.

Comments made in the Senate

1.14 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. Where any relevant comments have been made they are referred to in the section below on the evaluation of individual reports.

..,

.)

Department of the Prime Minister and Cabinet. Requirem ents for Annual Reporrs. June 2009. Part I. Section 4. D epartment of the Prime Minister and Cabinet. Requirem ents for Annual Reports. June 2009, Pa11 1. Section 4. A crs lnte1pretation Act 1901. section 34C.

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Bodies not presenting annual reports to the Senate

1.15 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. The committee considers that there are no bodies within its portfolio areas that do not meet their reporting requirements to the Senate in this regard.

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Chapter 2

Annual reports of non-statutory bodies, statutory office holders and non-statutory advisory panels

2.1 In its Report on Annual Reports (No. I) 2011, the committee considered a number of reports received after 31 October 2010. In future, the committee will consider these reports in its second report of each year.

2.2 The committee has only a small number of annual reports for closer examination in this year's second report including the following:

" Advisory Panel on the Marketing in Australia of Infant Formula;

" Pharmaceutical Benefits Pricing Authority; and

" Executive Director of Township Leasing.

2.3 A complete list of reports referred to the committee for examination, considered in both Report on Annual Reports (No.1) 2011 and this current report , can be found at Appendix 1.

Health and Ageing Portfolio

Non-statutory advisory panel

Advismy Panel on the Marketing in Australia of Infant Formula

2.4 The committee commends the Advisory Panel on the Marketing in Australia of Infant Fommla (APMAIF) for producing an annual report to Parliament when there is no legislative requirement for it to do so. The report provides important information to the parliament regarding the Marketing in Australia of b?fant Formulas: Mam~facturers and Importers Agreement (MAIF Agreement) which:

... gives effect in Australia to the principles of the World Health Organisation's International Code of Marketing of Breast Milk Substitutes (WHO Code) ... (and aims) ... to conttibute to the provision of safe and adequate nutrition for . f: I m ants ...

2.5 The APMAIF is a non-statutory advisory Panel established in 1992 by the Australian Govemment. Its main objective is to:

Annual Report of the APMA IF. 2009-20 I 0. p. 21.

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... monitor compliance with and advise the Government on the Marketing in Australia of Infant Formulas: Manufacturers and Importers Agreement (MAIF Agreement).2

It has no statutory or formal regulatory powers to enforce this agreement and 'there are no fmancial or legal sanctions associated with breaches of the agreement'. If the APMAIF determines that there has been a breach of the MAIF agreement, it advises the Minister (or Parliamentary Secretary) and publishes details of the breach in its annual report. 3

2.6 This report contains details of two breach decisions. One breach decision was made in January 2010 against Bayer Australia regarding a complaint. 4 The second breach decision relates to a complaint of a similar nature which is due to be fmalised in 2010-2011.5

2. 7 The report contains details of the APMAIF's terms of reference which clearly identify the objectives and functions of this body. 6 Chapter 3 of the report provides an account of the APMAIF's activities during 2009-2010.7

2.8 The report also provides details of the APMAIF Chair and Panel Members including their names, terms of appointment and areas of expertise. The report further notes that all members of APMAIF are part time with:

... remuneration arrangements being in accordance with Departmental policy and relevant determinations of the Remuneration Tribunal. 8

Panel members are appointed by the Parliamentary Secretary for Health. 9

2.9 Funding arrangements for the APMAIF are outlined in chapter 5 of the report.

The Department of Health and Ageing administers funding for the operating costs of the APMAIF ... through the Department's Services for Other Government and Non-Government Bodies Special Account. 10

2 Annual Report ofthe APMAIF, 2009-2010, p. 1.

3 Annual Report ofthe APMAIF, 2009-2010, p. 1.

4 Annual Report ofthe APMAIF, 2009-2010, p. 10.

5 Annual Report ofthe APMAIF, 2009-2010, p. 10.

6 Annual Report ofthe APMAIF, 2009-2010, p. 2.

7 Annual Report ofthe APMAIF, 2009-2010, p. 11-13.

8 Annual Report ofthe APMAIF, 2009-2010, p. 2.

9 Annual Report ofthe APMAIF , 2009-2010, p. 2-6,39.

10 Annual Report of the APMAIF, 2009-201 0, p. 17.

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The committee notes that details of the Department's Special Account are provided at page 547 of the Department of Health and Ageing Annual Report 2009-2010, but that an amount for the APMAIF is not separately listed there.

2.10 As the APMAIF operates under the department, the report does not contain audited fmancial statements. It does contain a brief table outlining total funding and total expenditure which are identical amounts. 11

2.11 It is noted that in 2009-2010, unlike in previous years, there was no contribution sought from industry under an informal cost-sharing agreement initially reached in 1998.12

Non-statutory body

Pharmaceutical Benefits Pricing Authority

2.12 The Pharmaceutical Benefits Pricing Authority (PBPA) was established in 1988 and is an independent non-statutory body which reviews and recommends prices for products supplied under the Pharmaceutical Benefits Scheme (PBS) and, smce 2006, the National Immunisation Program (NIP). 13

2.13 The PBP A's terms of reference require it to:

... determine or recommend to the Minister for Health and Ageing prices of items listed as pharmaceutical benefits or recommended by the Pharmaceutical Benefits Advisory Committee (PBAC) for listing. 14

2.14 The report provides details of the PBP A's membership for the 2009-201 0 fmancial year including names and positions of the members. Details of terms of appointment and any remuneration paid to members do not appear to be covered in the report.

2.15 Funding arrangements for the PBP A are briefly outlined in chapter 1. The report states that the Department of Health and Ageing budget fmances the Pharmaceutical Benefits Scheme (PBS) as well providing funds for:

" the fees and expenses incurred by the Chairman and consumer nominee, in accordance with determinations made from time to time by the Remuneration Tribunal;

11 Annual Report ofthe APMAIF , 2009-2010, p. 17.

12 Annual Report ofthe APMAIF, 2009-2010, p. 17.

13 PBPA, Annual Report 2009-2010, p. 1.

14 PBPA , Annual Report 2009-2010, p. 4.

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" the day to day operations of dealing with pricing matters under the Scheme; and

" the costs of associated meetings, seminars and other related expenses. 15

2.16 Chapter 1 of the report provides a brief table outlining the operating costs of the PBPA for the year ending 30 June 2010.16 As the PBPA operates under the department, the report does not contain audited fmancial statements.

2.17 Chapter 4 of the report discusses PBS reforms and notes that:

At the time of publication of this report, there is a Bill before the Parliament that, if passed, will change some of the provisions from the 2007 PBS Reforms.17

Families, Housing, Community Services and Indigenous Affairs Portfolio

Statutory office holder

Executive Director of Township Leasing

2.18 The Executive Director of Township Leasing came into existence on 1 July 2007 under the Aboriginal Land Rights (Northern Territory) Amendment (Township Leasing) Act 2007 (the Act).18

2.19 Mr Pat Watson held the Office of the Executive Director of Township Leasing during 2009-2010 after being appointed by the Governor-General when the Office was established in July 2007. It is noted that under the Act the Executive Director's appointment should not exceed five years. 19

2.20 The functions of the Executive Director are provided for in section 20C of the Act and include:

... enter(ing) into township leases on behalf of the Commonwealth and to administer such leases including administering subleases and other rights and interests derived from such leases. The Executive Director does not negotiate the terms and conditions of township leases. Township lease negotiations are conducted on behalf of the Commonwealth by the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA).20

15 PBPA, Annual Report 2009-2010, p. 2.

16 PBPA, Annual Report 2009-2010, p. 3.

17 PBPA, Annual Report 2009-2010, p. 17.

18 Executive Director of Township Leasing, Annual Report 2009-2010, p. 5.

19 Executive Director of Township Leasing, Annual Report 2009-2010, p. 5.

20 Executive Director of Township Leasing, Annual Report 2009-2010, p. 5.

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The Executive Director has since received additional functions through the Indigenous Affairs Legislation Amendment Act 2008 which enables:

... the Executive Director to hold other types of leases or subleases over land held primarily for the benefit of Aboriginal people in the Northern Territory. 21

2.21 The 2009-2010 financial year saw the third year of operation for this body and described the year as:

. . . one of consolidation combined with the facilitation of economic development opportunities. 22

2.22 The report provides that funding for the activities of the Executive Director of Township Leasing comes from the Aboriginals Benefit Account (ABA), details of which are contained in the FaHCSIA fmancial statements. The report provides a small table outlining expenditure for the year ended 30 June 2010.23

2.23 The report commented on the fmalisation of the sale of 13 residential subleases at Wurrumiyanga (Nguiu) which included the sale of three new homes to residents which were constructed under the Home Ownership on Indigenous Land Program (ROIL). The report noted that:

The Office remains encouraged by the way the Traditional Owners at Wurrumiyanga (Nguiu) have embraced the opportunity to invest in their own township and to take advantage of business opportunities made available through the Strategic Indigenous Housing and Infrastructure Program (SHIP) building activity. 24

2.24 The report also discusses the issue of:

. . . seven valuations to local families living in community houses located in Angurugu and Umbakumba. IBA has commenced providing information sessions on home ownership to local residents ... (whilst) Groote Eylandt and Bickerton Island Enterprises (GEBIE) have also entered into an agreement with IBA to provide a local contact for IBA home loan services on Groote Eylandt and Bickerton Island. 25

21 Executive Director of Township Leasing, Annual Report 2009-2010, p. 6.

22 Executive Director of Township Leasing, Annual Report 2009-2010, p. 3.

23 Executive Director of Township Leasing, Annual Report 2009-2010, p. 14.

24 Executive Director of Township Leasing, Annual Report 2009-2010, p. 3.

25 Executive Director of Township Leasing, Annual Report 2009-2010, p. 10.

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Conclusion

2.25 The conunittee 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.

Senator Claire Moore

Chair

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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 Date Date Date received Date Received Received

:' Year tabled tabled out of session submitted during during

,. Senate House of by President to/ received period for period for

- Represent- of the Senate by Minister Report 1 Report2

atives (if applicable) (if available) of2011 of2011

Aboriginal Hostels Limited CAC Act- Section 9 of the Commonwealth 2009-2010 27.10.10 27.10.10 06.10.10/ J

(AHL) company Authorities and Companies Act 07.10.10

(limited by 1997

guarantee)

Aboriginal Land Statutory office Section 61 of the Aboriginal 2009-2010 26.10.10 25.10.10 01.10.10/ J

Commissioner, Northern holder Land Rights (Northern 01.10.10

Territory Territory) Act 1976

Ani.ndilyakwa Land Council CACAct - Section 37 of the Aboriginal 2009-2010 01.03.11 10.02.11 29.11.10/ J

statutory Land Rights (Northern 29.11.10

authority Ten∑it01y) Act 1976 and section 9 of the Com monwealth Authorities and Companies Act 1997

Central Land Council CAC Act- Section 37 of the Aboriginal 2009-2010 26.10.10 25.10.10 06.10.10/ J

statutory Land Rights (Northern 07.10.10

authority Ten∑i to1y) Act 1976, section 9 of the Commonwea lth Authorities and Compan ies Act 1997 and the Native Title Act 1993

1\)

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Department/ Agency/Body Type Legislation Reporting Date Date \. Year tabled tabled

Senate House of

't∑ Represent-

atives

Coordinator-General for Statutmy office Section 28 of the Coordinator- 2009-2010 15.11.(0 15.11.10 Remote Indigenous Services 1

holder General fbr Remote Indigenous Services Act 2009

Department of Families, Department of Section 63 of the Public Service 2009-10 15.11.10 15.11.10 Housing, Community Services State Act 1999 (PS Act) and Indigenous Affairs

Equal Opportunity for Women Prescribed Section 12 of the Equal 2009-2010 09.02.11 09.02.11 in the Workplace Agency agency Opportunity for Women in the

(EOWA) Workplace Act 1999

Executive Director of Statutory office Section 20R of the Aboriginal 2009-2010 16.11.10 16.11.10 Township Leasing holder Land Rights (Northern

Territory)Act 1976

Indigenous Business Australia CACAct- Section 189 of the Aboriginal 2009-2010 16.1 l.JO 28.10.10 (!BA) statutory and Torres Strait Islander Act

authority 2005 and section 9 ofthe Commonwealth Authorities and Companies Act 1997

Incorporated into the Department of Families, Housing, Community Services and Indigenous Affairs report

Date received Date Received Received

out of session submitted during during

by President to/ received period for period for of the Senate by Minister Report 1 Report2 (if applicable) (if available) of20ll of2011

09.1 l.lO J

09.11.10 J

21.10.10 .J

19.10.10/ J

20.10.10

Ol.lO.lO/ J

01.10.10

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Department/ Agency/Body Type Legislation Reporting Date Date Date received Date Received Received

Year tabled tabled out of session submitted during during

Senate House of by President to/ received period for period for Represent- of the Senate by Minister Report l Report2 atives (ifapplicable) (if available) of20ll of201l

Indigenous Land Corporation CAC Act- Section 9 of the Commonwealth 2009-2010 26.10.10 25.10.10 0 l.l 0.10/ J

(ILC) statutory Authorities and Companies Act 01.10.10

authority 1997

Northern Land Council CAC Act- Section 37 of the Aboriginal 2009-2010 09.02.11 09.02.11 16.12.10 J

statutory Land Rights (Northern authority Territory ) Act 1976, section 9 of the Commonwealth Authorities and Companies Act 1997 and

the Native Title Act 1993

Outback Stores Pty Ltd CAC Act- Section 36 ofthe 2009-2010 16.1l.l0 16.11.10 01.10.10/ J

company Commonwea lth Authorities and 01.10.10

(limited by Companies Act 1997 shares)

Social Security Appeals Statutory body Section 25 of the Social Security 2009-2010 23.1l.IO 22.11.10 24.09.10/ J

Tribunal (SSA T) (Administration) Act 1999 14.10.10

Tiwi Land Council CAC Act- Section 9 of the Commonwealth 2009-2010 24.11.10 24.11.10 26.10.10/ J

statutory Authorities and Companies Act 26.10.10

authority 1997

Torres Strait Regional CAC Act- Section 144ZB Aboriginal and 2009-2010 16.11.10 28.10.10 01.10.10/ J

Authority statutory Torres Strait Islander Act 2005 01.10.10

authority and Section 9 ofthe Commonwealth Authorities and Companies Act 1997

16

Department/ Agency/Body Type Legislation Reporting Date Date Date received Date Received Received

Year tabled tabled out of session submitted during during

Senate House of by President to/ received period for period for Represent- of the Senate by Minister Report 1 Report2 atives (if applicable) (if available) of2011 of20ll

Wreck Bay Aboriginal CAC Act- Section 9 of the Commonwealth 2009-2010 26.10.10 25.10.10 Ol.l0.10/ J

Community Council statutory Authorities and Companies Act 01.10.10

authority 1997

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Health and Ageing portfolio

Departmen tl Agency/Body Type Legislation Reporting Date Date Date received Date Received Received

Year tabled tabled out of session submitted to/ during during ,, Senate House of by President received by period for period for Represent- of the Senate Minister Report 1 Report 2 of atives (if applicable) (if available) of2011 2011

Advisory Panel on the Non-statutory No legislative requirement to 2009-2010 01.03.11 23.02.11 J

Marketing in Australia of advisory panel table Infant Formula

Aged Care Commissioner Statutory office Section 95A-12 of the Aged 2009-20 I 0 26.10.10 26.10.10 17.09.10/ J

holder Care Act 1997 17.09.10

Aged Care Standards and CAC Act- Section 9 of the Commonwea lth 2009-2010 16.11.10 28.10.10 30.09.10/ J

Accreditation Agency Ltd company Authorities and Companies Act 12.10.10

(ACSAA) (limited by 1997

guarantee)

Australian Institute of Health CAC Act- Section 9 ofthe Commonwealth 2009-2010 27.10.10 27.10.10 13.10.10/ J

and Welfare (AIHW) statutory Authorities and Companies Act 13.10.10

authority 1997

Australian Organ and Tissue Prescribed Section 28 of the Australian 2009-2010 26.10.10 26.10.10 07.10.10/ J

Donation and Transplantation agency Organ and Tissue Donation and 08.10.l0

Authority Transplantation Authority Act

Australian Radiation Prescribed Section 59 of the Australian 2009-2010 26.10.10 26.l0.10 22.09.10/ J

Protection and Nuclear Safety agency Radiation Protection and 23.09.10

Agency (ARPANSA) Nuclear Safety Act 1998

Cancer Australia Prescribed Section 37 of the Cancer 2009-2010 15.11.10 15.11.10 29.10.10 J

agency Australia Act 2006

IS

Department/ Agency/Body Type Legislation Reporting Date Date Date received Date Received Received

Year tabled tabled out of session submitted to/ during during

Senate House of by President received by period for period for Represent- of the Senate Minister Report I Report 2 of ativcs (ifapplicable) (if available) of20l I 2011

Department of Health and Department of Section 63 of the Puhlic Servict! 2009-20 I 0 15.11.10 15.11.10 29.10.10 J

Ageing the State Act /999 (PS Act)

Food Standards Australia New CAC Act- Section 152 of the Food 2009-20 I 0 15.11.10 15.11.10 29.10.10 J

Zealand (FSANZ) statutory Standards Australia New

authority Zealand Act 1991 and section 9 of the Com m onwealth Authoriti es and Compan ies Act 1997

Office of the Gene Statutory office Section 136 of the Gene 2009-20 I 0 27.11.10 28.10.10 16.09.10/ J

Technology Regulator holder Technology Act 2000 21.09.10

General Practice Education CAC Act- Section 9 of the Commonwealt h 2009-20 I 0 16.11.10 16.11.10 06.10.10/ J

and Training Limited (GPET) company Authoriti es and Co mpanies Act 21.10.10

(limited by 1997

guarantee)

Health Workforce Australia CAC Act- Section 9 of the Commonweal th 2009-2010 16.11.10 28.10.10 13.10.10/ J

(HWA) statutory Authoriti es and Companies Act 27.10.10

authority /997

Medical Training Review Statutory Subsection 3GC(4) ofthe 2009-2010 05.07.11 05.07.11 17.04.11/ Due to be considered in

Panel (MTRP) authority Health lmurance Act 1973 17.04.11 AnnuaiReports(No.l of

2012)

National Blood Authority Prescribed Section 44 of the National 2009-2010 27.10.10 27.10.10 15.10.10/ J

(NBA) agency Blood Authority Act 2003 18.10.10

N

Ul

Department/ Agency/Body

National Breast and Ovarian Cancer Centre (NBOCC)

National llealth and Medical Research Co uncil (NHMRC)

National Industrial Chemicals Notification and Assessment Scheme (NICNAS)

Pharmaceutical Benefits Pricing Authority (PI3PA)

Private Health Insurance Administration Council (PI-llA C)

Private Health Insurance Ombudsman (PHIO)

Professional Services Review (PSR)

Type

CAC Act-company (limited by guarantee)

Prescribed agency

Regulatory Scheme

Non-statutory body

CAC Act-statutory authority

Prescribed agency

Prescribed agency

Legislation Reporting

Year

Section 9 ofthe Commonwea/111 2009-2010 Authoriti es and Companies ,..let /997

Section 83 of the Nalional 2009-2010 Health and Medical Research Council Act 1992

Section I 08 of the lnduslrial 2009-2010 C hemicals ( Nut{fical ion and Assessment) Act 1989

Section 99YBC of the National 2009-20 I 0 Health Acl 1953

Section 9 of the Commmrwealth 2009-2010 Authorities and Co mpanies ,../ ct 1997"

Section 253-50 ofthe Private 2009-2010 Health Insurance Act 2007

Section I 06ZQ of the 1/ealth 2009-20 I 0 Insurance Act 1973

19

Date Date Date received Date Received Received

tabled tabled out of session submitted to/ during during

Senate House of by President received by period for period for Represent- of the Senate Minister Report I Report 2 of atives (if applicable) (if available) of20l1 2011

15.11.10 15.11.10 29.10.10 J

15.11.10 15.11.10 29.10.10 J

26.1 1.10 28.10.10 29.0() .I 0/ J

30.09.10

09.02.11 25.11.10 17.11.10/ J

17.11.10

23 .II. I 0 22.11.10 15.10.10/ J

17.10.10

16.11.10 28.10.10 28.09.10/ J

29.09.10

16.11.10 28.10.10 18.10.10/ J

20.10.10

N

Ol

20

Human Services portfolio

Department/Agency/Body Type Legislation

Au stralian Hearing Services CAC Act- Section 9 ofthe Comm onwealth (Australian Hearing) statutory Authoriti es and Companies Act authorit y 1997

Centrelink (Commonwealth Prescribed Section 40 of the Services Delivery Agency) agency Co mm oJJwea/th Services Delivery Agency Act 1997

Child Support Registrar 2 Statutory orfice Section 14 of the Child Support holder (Registrati on and Collection) Act 1988

Department oflluman Department of Section 63 of the Puhlic Service Services the State Act 1999 (PS Act)

M edicare Australia Prescribed Section 42 of the M edicare agency Australia Act/9 73

Medibank Private Limited CAC Act- Section 9 of the Commonw ealth company Authoriti es and Companies Act (limited by /997

shares)

2 Incorporated into the Department of Human Services Report

Reporting Year

2009-2010

2009-20 I 0

2009-20 I 0

2009-2010

2009 -2010

2009-2010

Date Date Date received Date Received Received

tabled tabled out of session submitted during during

Senate House of by President to/ received period for period for Represent- of the Senate by Minister Report I Report 2 of atives (if applicable) (if available) of2011 2011

16.11.10 28 .10.10 28.09.10/ J

01.10.10

25 .10.10 18.10.10 15.10.10 J

25.10.10 18.10.10 15.10.10 J

25.10.10 18.10.10 15.10.10 J

25 .10.10 18.10.10 15.10.1 (I J

26.11.10 30 .09.10 16.09.10/ J

17.09.10

The Senate

Economics

Legislation Committee

Annual reports (No.2 of 2011)

August 2011

27

©Commonwealth of Australia 2011

ISBN 978-1-74229-504-6

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

28

Senate Economics Legislation Committee

Members

Senator Mark Bishop, Chair Senator David Bushby, Deputy Chair Senator Alan Eggleston Senator Doug Cameron Senator Anne Urquhart Senator Nick Xenophon

Secretariat

Dr Richard Grant, Acting Secretary Mrs Noemi Murphy, Estimates Officer Ms Morana Kavgic, Administrative Officer

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

Western Australia, ALP Tasmania, LP Western Australia , LP New South Wales, ALP

Tasmania, ALP South Australia , IND

Internet: http://www .a ph. uov .au/s enate/committee/economics ctte /index.htm

Ill

29

30

TABLE OF CONTENTS

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

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

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

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

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

Reports referred to the committee .......... ............. ................................................... 2

TiJneliness ............................................................................................................... 4

Re1narks 1nade in the Senate ................... ............ ...... ................................... ...... ..... 5

Bodies not presenting annual reports to the Senate ................................................ 5

Other comments on reports ...................................................................... .... .......... 5

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

Individual 2009-2010 Annual Reports ................................................................... 9

Reports under the Innovation , Industry , Science and Research portfolio .............. 9

Reports under the Department of Resources, Energy and Tourism ..................... 15

Reports under the Treasury Portfolio .............................................. ..................... 17

Committee's concluding remarks ......................................................................... 25

Appendix 1 ". "... " ". ". " " " ".. ". " " ". ".. " " ".. ".. "... ".. " " "..... ".. "..... ". ". " " ". ". "....... "... "........ " ".... "......... 27

Abbreviations .......................................................................................................... 27

Appendix 2 ......................................................................................................... 29

Portfolio structure and outcomes for the Innovation, Industry, Science and Research Portfolio for 2009-10 ........................................ 29

Appendix 3 ......................................................................................................... 30

Portfolio Structure and outcomes for the Resources, Energy and Tourism Portfolio for 2009-2010 ...................................................... 30

31

Appendix 4 ....................................................................... ................ ............ ...... 31

Portfolio structure and outcomes for the Treasury portfolio 2009-2010 ...... .... 31

Appendix 5 .......................... ........... .................................................................... 33

Innovation, Industry , Science and Research Portfolio ....................................... 33

List of annual reports tabled in the Senate during the period 1 No vemb er 2010 to 31 April 2011 .... ....... ..... ..... ............ .... ...... ......... 33

Appendix 6 ........ ..... .................... .................................... ........................... ........ . 35

Resources, Energy and Tourism Portfolio ........................................................... 35

List of annual reports tabled in the Senate during the period 1 Novemb er 2010 to 31 April 2011 ........... ....... ..... ........ ..................... 35

Appendix 7 ................................... ...................................................................... 37

Treasury Portfolio .... ...................................... ................................ ........................ 37

List of annual reports tabled in the Senate during the period 1 Nove mb er 2010 to 31 A pril 2011 ....... .......... ...... ....... ............ ...... .... 37

32

Chapter 1

Overview

Introduction

1.1 Annual reports of departments and agencies are referred to Senate legislation conm1ittees under Senate Standing Order 25(20). The Economics Legislation Conmlittee is responsible for the scrutiny of departments and agencies in the following p011folios:

" Innovation, Industry, Science and Research;

" Resources, Energy and Tourism; and

" Treasury.

1

1.2 The structures and outcomes for each of these portfolios for 2009-1 0 are summmised in Appendices 2, 3 and 4, respectively.

1.3 Standing Order 25(20) requires the committee to:

" examine each annual report referred to it and report to the Senate whether the report is apparently satisfactory ;

" 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;

" investigate and report to the Senate on any lateness in the presentation of annual reports;

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

" if the comnlittee so determines, consider annual reports of departments and budget-related agencies in conjunction with examination of estimates;

" 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;

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

" report to the Senate each year whether there are any bodies which do not present annual reports to the Senate and which should present such reports. 2

Journals ofthe Senate, No.2, 29 September 2010. pp 88-89.

33

Page 2

Purpose and requirements of annual reports

1.4 Annual reports provide information on the success (or otherwise) of agencies in meeting targets outlined in budget statements, their primary function being to assist in ensuring the public accountability of government agencies. The tabling of annual reports in the Parliament , and scrutiny by Senate committees, allows Parliament to make informed judgments on the executive's perfom1ance in administering government programmes.

1.5 D epartments of State and Executive Agencies present their annual reports pursuant to subsections 63(2) and 70(2) of the Public Service Act 1999. These entities, as well as prescribed agencies under section 5 of the Financial Manag ement and Accountability Act 1997 (FMA Act), are requir ed to comply with the Department of

the Prime Minister and Cabinet's Requirements for Annual Reports for D epartments, Executive Agencies and FMA Act Bodies, approved by the Joint Committee of Public Accounts and Audit. 3

1.6 Commonwealth authorities and companies present their annual reports pursuant to their own enabling legislation and/or sections 9 and 36 of the Comnzomvealth Authorities and Companies Act 1997 (CAC Act). 4

1. 7 The enabling legislation of some agencies may require that agency to report on matters other than those included in the guidelines , or impose diff erent reporting requirements. The committee's view is that such agencies, while bound by their enabling legislation, should also comply with the requirements imposed under the government's policy, to the extent that the requirements do not conflict.

1.8 The legislation governing the annual reports of agencies considered in this report is shown in Appendices 4, 5 and 6.

Reports referred to the committee

1.9 Under Standing Order 25(20)(f), the committee is requir ed to report on the annual rep011s of departments and agencies tabled in the Senate between 1 N ovember

2 Standing Order 25(20), Standing Orders and other orders of the Senate, June 2009, p. 28.

3 See http://wvvw .dpm c.gov.au l!.ruidel ines/docs/annual report requiremen ts.pdf. The financial statem ents for these entities mu st be produced in accordance with the Financial Manag em ent and Accountabilit y Orders (Financial Statem ents for reporting periods ending on or after 1 July 2008).

4 Reports of Comm onwealth authorities subject to the CAC Act must be produced in accordance w ith the Com m onwealth Authoriti es and Compani es (Report of Op erations) Orders 2008 and the Commonw ealth Authoriti es and Compani es Orders (Financial Statem ents for reporting periods ending on or after 1 Ju~ v 2008). Ann ual reports of Commonwealth companies are

required to be based on the reporting requirements under the C01porations Act 2001.

34

Page 3

and 30 April of the following year by the tenth sitting day after 30 June of that year. This year that date is 24 August 2011.5

1 .1 0 This report therefore examines the 2009-10 annual reports of the following agencies (which were tabled in the Senate or presented to the President between 1 November 2010 and 30 April2011):

" Anglo-Australian Observatory (AAO);

" Auditing and Assurance Standards Board (AUASB);

" Australian Accounting Standards Board (AASB) ;

" Australian Centre for Renewable Energy Board (ACRE);

" Australian Competition and Consumer Conm1ission (ACCC);

" Australian Nuclear Science and Technology Organisation (ANSTO) ;

" Australian Research Council (ARC) ;

" Australian Securities and Investments Commission (ASIC);

" Department of Resources, Energy and Tourism (DRET) ;

" Financial Reporting Council (FRC);

" Innovation Australia;

" Innovation Investment Fund (IIF) Companies;

" National Competition Council (NCC);

" National Offshore Petroleum Safety Authority (NOPSA) ;

" Productivity Commission (PC);

" Reserve Bank of Australia (RBA) ;

" Royal Australian Mint (RAM);

" Snowy Hydro Limited; and

" Takeovers Panel (TP).

1.11 In addition to the 2009-10 annual reports of agencies, this report also examines the 2008--09 report on Australia and the International Financial Institutions , which was tabled in the parliament by the Treasurer on 9 February 2011.6

1.12 Comments on all of the above reports are contained in Chapter 2.

5 The committee is also required to report on annual reports tabled in the Senate between 1 May and 31 October each year by the tenth sittin g day of the following year.

6 Whilst this is a report presented to the parliament by the Minister. and not an annual rep01i of a depm1ment or agency, it is still w ithin the power of the committee to consider it as a report of intere st under the committee's area of oversight.

35

Page4

Timeliness

1.13 Standing Order 25(20)(c) requires the committee to report to the Senate on the late presentation of annual reports. ∑

Departments and FMA Act entities

1.14 Section 4 of the 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.

CAC Act entities

1.15 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 fmancial year; that is, 15 October.

1.16 Section 36 of the CAC Act stipulates that Commonwealth companies must give their annual reports to the responsible minister by the earlier of the following:

" four months after the end of the financial year, or

" 21 days before the next annual general meeting of the company after the end of the financial year.

Other entities

1.1 7 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 190 I, 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 he or she receives it.

Government policy for all annual reports

1.18 While the legislative requirements for the tabling of annual reports vary between different types of agencies, the governn1ent's policy is 'that all annual reports should be tabled by 31 October'. 7

1.19 The committee notes that none of the annual reports considered in this report were tabled in the Senate by 31 October 2010. All bar three of the reports considered

7 Department of the Prime Minister and Cabinet, Requirements for Annual Reports, June 2009, p. 2; and Department of the Prime Minister and Cabinet, Guidelines for the Presentation of Government Docum ents to the Parliament (Including Government Responses to Committee Reports, Ministerial Statements , Annual Reports and Other Instruments), June 2009, paragraph 4.1 0.

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Page 5

in this report were, however, tabled in the House of Representatives before 31 October, and hence have technically met the requirement set down by the government's policy.

1.20 The two reports which were not tabled in either House of Parliament by 31 October and hence failed to meet this policy are the 2009-10 annual reports of the Anglo-Australian Observatory and Innovation Investment Fund (IIF) companies. The annual report of the ACRE Board was also late; however, the committee recognises that the Board only had its first formal meeting on 21 June 2010 and therefore had limited operational capacity to complete its report on time.

1.21 The cornn1ittee suggests that all annual reports should be tabled by 31 October in the Senate, regardless of their tabling date in the House of Representatives .

1.22 Additionally, while it is governn1ent policy that all annual reports should be tabled by 31 October, dates for the tabling of annual reports set in legislation vary between agencies and as such, will be considered in the specific comments on annual reports below where necessary.

Remarks made in the Senate

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

1 .24 None of the annual reports considered in this report have been the subject of debate in the Senate.

Bodies not presenting annual reports to the Senate

1.25 The committee is required to report to the Senate each year under Standing Order 25(20)(h) 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 within the Innovation , Industry, Science and Research; Resources, Energy and Tourism; or Treasury portfolios.

Other comments on reports

1.26 The Requirem ents for Annual Reports outlines the governn1ent's view of the purpose of annual reports:

The primary purpose of annual reports of departments is accountability , in pa11icular to the Parliament.

Annual reports serve to infonn the Parliament (through the responsible minister) , other stakeholders , educational and research institutions, the media and the general public about the perfonnance of departments in relation to services provided. Annual reports are a key reference document

37

Page 6

and a document for internal management. They form part of the historical record. 8

1.27 In accordance with Standing Order 25(20)(a) the committee is required to examine reports and inform the Senate as to whether they are 'apparently satisfactory' . In doing so the comnuttee considers compliance with the reporting guidelines specified by the legislation under which departments and agencies present their annual reports.

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

1.29 Despite tills, the committee believes that some aspects of agency annual repot1s can be improved. In this report , the comnlittee has focussed on examining whether or not agency annual reports contain discussion of external scrutiny and parliamentary accountability .

External scrutiny and parliamentmy accountability

1.30 The Requirements for Annual Reports states that annual reports:

... must proYide information on the most significant deYelopments in extemal 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 depattment by the Auditor-General (other than the report on financial statements) , a Parliamentary committee or the Commonwealth Ombudsman. 9

1.31 Clause 11 of Schedule 1 of the Commonw ealth Authorities and Companies (Report of Operations) Orders 2008 states that the same requirements apply to Conm1onwealth authmities that present their annual repor1s in accordance with the provisions of section 9 of the CAC Act.

1.32 As noted above, 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 mam1er in annual repor1s. It is particularly important that details about parliamentary scrutiny are included in annual reports , including appearances at Senate estimates hearings (which are the subject of bi-annual reports to the Senate).

8 Department of the Prime Minister and Cabinet, Requirem ents for Annual Reports, 23 June 2010. p. 3.

9 Department of the Prime Minister and Cabinet, Requirem ents for Annual Reports, 23 June 2009, p. 9.

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Page 7

1.33 With this in mind, the committee believes that future annual reports could be improved by more systematic reporting in relati on to parliamentary committee inquiries and reports , and reports of the Auditor-General and Ombudsman , as recommended in its previous report Annual reports (No. 2 qf 20 I 0). 10

Compliance of agencies with Senate Orders

1.34 Periodically, the Rule of Law Institute of Australia (RoLlA) publishes a survey reviewing the perfom1ance of Australia's economic regulatory agencies at Senate Estimates, including an evaluation of data relating to the timeline ss of agencies' provision of responses to questions taken on notice at estimates hearings.

1.35 Its third report of this kind, published in January 2011, notes that many agencies struggle to comply with Senate Orders relating to timeliness , and contains a reconm1endation "that the Senate require agencies and departments to maintain a register of compliance with Senate Orders, including compliance with Orders relating to Estimates questions taken on notice, and that the register be published in each Annual Report." 11

1.36 The committee considers that a register of compliance with Senate Orders would be a useful addition to agencies' annual reports , and would enhance the accountability of governn1ent entities to the Parliament.

Recommendation 1

1.37 The committee recommends that the government, in consultation with the Joint Committee of Public Accounts and Audit, amend the annual reporting requirements for government entities to include for the provision of a register of compliance with Senate Orders in each annual report.

Structure of report

1.38 This report consists of two chapters. The second chapter analyses the annual reports of the agencies listed in paragraph 1.10 above.

10 Senate Economics Legislation Committee. Annual Reports (No. 2 of 20 I 0). November 2010, p. 6.

11 Rule of law Institute of Australia, RoLlA Senate Estimates Stuw :y No.3. p. 25.

39

40

Chapter 2

Individual2009-2010 Annual Reports

Reports under the Innovation, Industry, Science and Research portfolio

Anglo-Australian Observatory (AAO)

Organisational changes

2.1 The United Kingdom , Australia's partner in establishing the Anglo-Australian Telescope Board (AATB), decided in 2005 to withdraw from the Anglo-Australian Telescope Agreement, effective 30 June 2010. Consequently, from 1 July 2010, the Australian Government, as part of its May 2009-2010 Budgetary Measures, agreed to takeover the AAO. Legislation giving effect to these changes are:

" The Australian Astronomical Observatory Act 2010

" The Australian Astronomical Observat01y (Transitional Provisions) Act 2010

2.2 As a result of the above changes, the AAO has become part of the Department of Innovation, Industry , Science and Research effective, 1 July 2010. It is now referred to as the Australian Astronomical Observatory. Therefore, the 2009-2010 Anglo-Australian Observat01y Annual Report is the final independent annual report

tabled in both Houses of Parliament by the organisation.

Reporting requirements

2.3 The committee considers that the AAO has largely met its reporting requirements under the Act. However, the committee notes that the report was tabled in both Houses of Parliament on 24 November 201 0-after the six month deadline specified in subsection 34C(2) of the Acts Jntelpr etation Act 1901 which applies where 'an Act requires a person to furnish a periodic report to a Minister but does not specify a period within which the report is to be so furnished' .

2.4 The committee notes that the report did not contain a Compliance Index.

Operational matters

2.5 The annual report highlights the successful partnership between the UK and Australia . The two nations celebrated their 36 year-long partnership with a symposium. The title of the symposium was Celebrating the AAO: Past, Present and Future, held on 21-25 June 201 0 in Coonabarabran.

2.6 The annual repott highlights a number of important discoveties made during the year:

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Page 10

These discoveries ranged from Earth-like planets around other stars to enom1ous sound waves that echoed around the universe after the Big Bang. 1

The repmi also highlights current research at the AAO, namely the Anglo-Australian Planet Search (AAPS).

2.7 Numerous current community and educational programs are mentioned, while two ongoing projects are highlighted: the National Collaborative Research Infrastructure Strategy (NCRIS) funded efforts to refurbish the AAT and the construction of the HERMES spectrograph.

Australian Nuclear Science and Technology Organisation (ANSTO)

Reporting requirem ents

2.8 The conunittee considers that ANSTO has met its reportin g requirements under the CAC Act.

Operational matters

2.9 The annual report notes that the Molybdenum (Mo-99) plant has been in full operation for most of the year. As a result , ANSTO expects to expand its critical exports of Mo-99 production in coming years.

2.10 In anticipation of future demand for nuclear-capable people, ANSTO has begun talks with Universities so as to bring about an increase in the number of nuclear science courses provided at undergraduate and post-graduate levels . New partners include the Australian National University, Curtin University of Teclmology and the University of Sydney.

2.11 Over the next four years ANSTO's Centre for Accelerator Science will see two new accelerators built, and is currently developing Hot Isostatic Pressing Technology in partnership with the US Department of Energy.

2.12 As a result of the $37 million allocation by the Federal Go vernment in May 2009, ANSTO has also begun its Neutron Beam Expansion Project. In August 2009, ANSTO held a two-day scoping workshop:

Involving 80 national and intemational researchers made up of existing ANSTO instrument users. 2

2.13 The annual report highlights that the OPAL reactor remained operational for 265 days during the 2009-2010 fmancial year. This operational time places it into the top three m ost reliable reactors globally.

Anglo-Australian Observatory Annual Report 20092010, p. 8.

2 ANSTO Annual Report 2009-2010, p. 11.

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Page II

Australian Research Council

Reporting requirements

2.14 The committee considers that the ARC has met its reporting requirements under the FMA and Australian Research Council Act 2001.

Operational matters

2.15 The committee notes a change in the ARC's outcome:

" Previous outcome: Growth of knowledge and innovation through providing policy advice, measuring research excellence and managing research funding schemes.

" New outcome: Growth of knowledge and innovation through managing research funding schemes, measuring research excellence and providing advice.

2.16 During the 2009-2010 financial year, the Excellence in Research for Australia (ERA) process was trialled. According to the report, the ERA has elicited much debate and engagement from Australian universities and interested stakeholders. 3 The submissions phase for a full review of the 6 discipline clusters identified by the ERA conunenced on 30 June 2010 and was underway at the time the Annual Review was completed. There are several phases yet to be completed before the outcomes of the review can be reported . This review process is expected to be completed during the 2010-2011 financial year.

2.17 Three new initiatives were introduced under the National Competitive Grants Program: the Future Fellowships scheme; the Super Science Fellowship scheme; and the Research in Bionic Vision Science and Technology Initiative. In September 2009, 200 new Future Fellowships were announced. Through the Super Science initiative, in April 2010, '$27 million was awarded to 20 Australian institutions to recruit 100 early-career researchers from Australia and around the world ... '4 Finally , in December 2009, as part of the Research in Bionic Vision Science and Technology Initiative, $50 million was awarded to two Australian research teams. The initiative is a response to reconm1endations of the Australia 2020 Summit.

2.18 In September 2009, the ARC released the ARC Peer Review Processes Consultation Paper, seeking feedback from the research sector relating to the peer " review process. A result was the implementation of the Research Opportunity and Pe1:{ormance Evidence (ROPE) as a selection criterion for reviewers.

2.19 In April 2010, the ARC and the National Health and Medical Research Council were given joint responsibility for the administration of the Australian

3 A ustralian Research Co uncil Annual Review 2009-20IO, p. 60.

4 A usrralian Research Co uncil Annual Review 2009-20IO, p. 9.

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Research Integrity Committee (ARIC)-a new independent body responsible for the 'review processes by which universities and other research organisations have handled allegations of research misconduct'. 5

2.20 The ARC noted in its annual report the release of the report entitled ARC " supported research: the impact o_fjourna/ publication output, 2001-2005. The report showed that ARC-funded research published in journals has been meeting and at times exceeding, international benchmarks in all but one broad field of research.

Recommendation 2

2.21 The committee notes that while the ARC mentioned the strongest performing fields (under the Discove1y Projects scheme, Agricultural, Veterinary and Environmental Sciences, Earth Sciences and Physical Sciences), it did not mention the weaker areas of research or the broad field that did not meet international benchmarks. In the future, the inclusion of the weaker performing areas would be useful as it would provide guidance for future improvements and the possible allocation of funding and/or resources.

Innovation Investment Fund (ll F) Companies

Reporting requirements

2.22 The committee considers that the JJF Companies have mostly met their reporting requirements under the Act. However, the committee notes that the report was tabled in both Houses of Parliament on 24 November 2010. This was after the six month deadline specified in subsection 34C(2) of the Acts lnte1pretation Act /901, which applies where 'an Act requires a person to furnish a periodic report to a Minister but does not specify a period within which the rep011 is to be so furnished'.

2.23 The committee also notes that the annual report did not contain a Compliance Index.

2.24 Unlike the previous 2008-2009 annual report , the Companies did not report on the number of companies invested in and their statistical information. 6 The inclusion of this inforn1ation would be useful from a comparative and consistency perspective.

Operational matters

2.25 The committee notes that the annual report submitted by the IIF Companies only repmts on two companies: IJF Investments Pty Ltd and IIF Foundations Pty Ltd as opposed to the five companies reported on last financial year (2008-2009). This discrepancy is due to the fact that on 28 October 2008, the Directors of IIF

5 Australian Research Coun cil Annual Re\∑ ie11∑ 2009-]010. p. 9.

6 See for example p. II in the IIF Company's 2008-2009 Annual Report.

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Investments Pty Ltd, IIF Foundations Pty Ltd, 11F (CM) Investments Pty Ltd, IIF BioVentures Pty Ltd, IIF Neo Pty Ltd, resolved to wind up the companies and to transfer all investments and their carrying values directly to the Australian Government. Consequently, the three companies were deregistered with ASIC on 23 June 20 I 0.

2.26 A single volume is published with an overview and annual reports for IIF Investments Pty Ltd and IIF Foundations Pty Ltd. These companies are wholly-owned by the government. IIF Investments Pty Ltd invests in the five Innovation Funds, set up as unit trusts: Allen & Buckeridge II, AMWIN Innovation Fund, Momentum Ventures Unit Trust, the Australian Bioscience Trust and the Nanyang Innovation Fund.

2.27 IIF Investments also invests in the four Pre-Seed Funds: Starfish Ventures Pre-Seed Fund, GBS Genesis Fund, Allen and Buckeridge Emerging Technologies Fund, SciVentures Pre-Seed Fund and eve REEF Limited, which is licensed under the REEF program. IIF Foundations invests in the Foundation IIF Partnership, through a partnership structure.

2.28 In 2009, the Innovation Investment Follow-on Fund (IIFF) was established. The annual report states that '[t]he program is a targeted and temporary response to protect current investments in the early stage venture capital market in response to the lack of capital given the global financial crisis'.

7

The IIFF is funded directly by the

Australian Government and has thus not been included in the annual report.

Innovation Australia

Reporting requirements

2.29 The committee considers that Innovation Australia has mostly met its reporting requirements under the Act. However, the committee notes that the report was tabled in the Senate on 3 March 2011. Again, this was well after the six month deadline specified in subsection 34C(2) of the Acts fl1teJpretation Act 1901 which applies where 'an Act requires a person to furnish a periodic report to a Minister but does not specify a period within which the report is to be so furnished' .

2.30 The committee also notes that the annual report did not contain a Compliance Index.

2.31 Innovation has failed to comply with sub-paragraph 46(2)(c) of the Industry Research and Development Act 1986, which states that:

(c) ({ rhe Board has entered into agreements under this Act, including agreements entered into under transitional arrangements. and those agreements are still in force during the year- must set ollf , in relation to each such agreement entered into:

7 IIF lnl' esrmenrs Pry Limited and !IF Foundation P(v Limited Annual Reports 2009-1010. p. 12.

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Page 14

(i) the nam e of each researcher to whom Comm01n1∑ealth mon ey has been paid in respect of a research and development program during the year; and

(ii) the amount of Commonwealth money paid to that researcher in respect of that program in the year.

Innovation has not provided the names of the researchers party to grant agreements under sub-paragraphs c(i) and (ii).

Recommendation 3

2.32 This committee recommends that Innovation table their grants as an appendix and take care to comply with the Indust1y Research and Development Act 1986.

Operational matters

2.33 Innovation Australia has provided over $1.1 billion of assistance to 9~ 063 customers and suppor1ed over $17.6 billion in research and development (R&D) and commercialisation activities. The report states that 'a further $78 million of Australian Government funding was provided to help generate $208 million of investment in venture capital raising and energy and water efficiency infrastructure in manufacturing'.

8

2.34 Innovation established the CA program which 'aims to assist researchers~ entrepreneurs and innovative companies to convert their intellectual property into successful commercial ventures'. 9

2.35 In May 2010, a discussion paper was presented to the Innovation Board ~ titled Developing a Bioeconomy for Australia, designed to assist in identifying future innovation opportunities in Australia. The result was the formation of three strategic working groups; Growing Australian SMEs to be internationally competitive and

become large MNEs; Developing a Bioeconomy in Australia and Strengthening Australia's venture capital induslly.

Reports under the Department of Resources, Energy and Tourism

Australian Centre for Renewable Energy Board (ACRE)

Reporting requirements

2.36 The conm1ittee considers that ACRE has largely met its reporting requirements under the Act. However ~ the committee notes that the report was tabled

8 lnnomtion Australia Annual Report 2009-2010, p. 4.

9 Innovation Australia Annual Report 2009-2010, p. 5.

46

Page 15

in both Houses of Parliament on 9 February 2011. Once again, this was after the six month deadline specified in subsection 34C(2) of the Acts h1te1pretati on Act 1901 which applies where 'an Act requires a person to furnish a periodic report to a Minister but does not specify a period within which the report is to be so furnished'.

Op erational matters

2.37 ACRE commenced operation in October 2009. The annual report states that the Centre:

... draws together more than $560 million of renewable energy investment to help commercialise renewable energy technologies. ACRE will be the central point of contact for Australian Government support for renewable energy and enabling technologies.

10

2.38 On 18 November 2009, legislation was introduced to Parliament to establish the ACRE Board. The Australian Centre for Renewable Energy Act 2010 commenced on 24 March 2010. The Board's primary function is to provide advice to the Minister. It held its first meeting on 21 June 2010.

2.39 The Australian Government consolidated a number of existing programs into ACRE at its forn1ation : namely, Renewable Energy Demon stration Program (REDP); Geothermal Drilling Program (GDP); the Second Generation Biofuels Research and D evelopm ent Program (Gen 2); the Renewable Energy Equity Fund (REEF); the Advanced Electricity Storage Technologies Program (AEST) and the Wind Energy Forecasti ng Capability (WEFC) Initiative.

Department of Resources, Energy and Tourism

Reporting requirem ents

2.40 The committee considers that DRET has met its reporting requirements under the Act. The committee commend s DRET on an outstanding report.

Op erational matters

2.41 Highlights of DRET's year include the issuing of new offshore petroleum exploration licenses; consultation on the Draft Government Response to the Offshore Petroleum Safety Regulation Inqui1y reports ; the implementation of the Clean Energy Initiati ve, which provides the framework for the Solar Flagships and Carbon Capture and Storage Flagships programs; the comn1encement of the Australian Energy Market

Op erator on 1 July 2009; the publication of First Opportuniti es report on the Energy Efficiency Opportunities program; the establishment of the Tourism Quality Council of Australia and the delivering of the China Approved D estination Status Scheme to underpin the valuable Chinese tour group market.

10 Department of Resources, Energy and Tourism Annual Report 2009-2010, p. 73.

47

Page 16

2.42 DRET's annual report also includes the annual report of Geoscience Australia (Part 4), a prescribed agency.

National Offshore Petroleum Safety Authority

Reporti ng req ui rem en ts

2.43 The committee considers that NOPSA has met its reporting requirements under the FMA Act and the Offshore Petroleum and Greenhouse Gas Storage Act 1997.

2.44 The NOPSA Annual Report 2009-2010 also contains the annual repmi of the NOPSA Advisory Board.

Operational matters

2.45 NOPSA noted that 2009-2010 was a particularly bad year for the industry due to the blow-out of the Montara wellhead platform off Australia's northern coast and the fatal Macondo Deepwater Horizon accident in the Gulf of Mexico.

2.46 NOPSA repmis a decrease in personal injury rates during the 2009-2010 financial year: there were 185 cases in the previous financial year, and 116 cases in the current year of reporting. This is however countered by an 'upward trend in the hydrocarbon release rate on offshore facilities for the six-month period January to June 2010.,~ 1

Snowy Hydro Ltd

Reporting requirements

2.47 Snowy Hydro Ltd is a statutory corporation. As a company limited by shares, Snowy Hydro is not subject to the requirements for annual reports of government departments and agencies outlined by the Department of Prin1e Minister and Cabinet. Its annual repmi, however, does comply with the provisions of the Corporations Act 2001.

Operational matters

2.48 Snowy Hydro Ltd and its subsidiaries manage and maintain the Snowy Hydro-electric Scheme, generating and marketing renewable electricity and electricity products. The organisation is a company limited by shares, of which the Commonwealth holds a 13 per cent stake, and Snowy Hydro is required to table its annual reports in the Federal Parliament under the Snmty Hydro Corporatisation Act

199 7. This annual report covers the period 5 July 2009 to 3 July 2010, and outlines the financial perfonnance of Snowy Hydro Ltd over the year, as well as mentioning its compliance with environmental regulations.

11 NOPSA Annual Report 2009-2010, p. 8.

48

Page 17

Reports under the Treasury Portfolio

Australia and the International Financial Institutions Annual Report 2008-09

Reporting requirements

2.49 Section 10 of the International Mon etmy Agreements Act 1947 provides that the Treasurer shall prepare and cause to be laid before each House of the Parliament , as soon as practicable after the end of each financial year, a report on the operations of the Act and of the operations , insofar as they relate to Australia , of the Articles of Agreement of the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD) during that financial year.

2.50 Section 7 of the International Bank for Reconstruction and Development (General Capital Increase) Act 1989 provides that the Treasurer shall prepare and cause to be laid before each House of Parliament, as soon as practicable after the end of each financial year, a repm1 on the operations of the Act during that financial year.

2.51 The committee considers that the report has met the requirements of both Acts.

Operational matters

2.52 The 2008-09 financial year presented many challenges due to the Global Financial Crisis (GFC) . On 15 November 2008, during the Washington DC Summit, the G20 Leaders agreed and declared that they would do whatever necessary to restore jobs and economic growth. A 47 point Action Plan was agreed upon and G20

Working Groups were established to carry the Plan forward.

2.53 During the London Summit on 2 April 2009, the G20 Leaders agreed on a comprehensive action plan for recovery and reform.

2.54 The Treasurer , the Hon. Wayne Swan , has been Australia's Governor on the International Monetary Fund (IMF) board since 2007. During 2008-09, the Secretary to the Treasury, Dr Ken Henry AC , was the Alternate Governor. 'The Treasurer represented Australia at the Annual Governors' meeting held on 13 October 2008 and represented Australia and the constituency of which Australia is a member at the IMFC meeting held on 11 October 2008 and 25 April 2009'. 12

2.55 In 2008-09, Australia worked with the World Bank Group (WBG) on around 100 joint activities , ranging from small analytical projects through to multi-donor programs like the A$50 million contribution to the Food Price Crisis Response Core Multi-Donor Trust Fund. The total value of these projects amounted to A$296 million.

12 Australia and the International Financial Institutions Annual Report 2008-2009, p. 7.

49

Page 18

2.56 The annual report notes that the Treasurer represented Australia on the Board of Governors of the World Bank; Australia's Alternate Governor was the Hon. Bob McMullan MP .

2.57 In 2008-2009, the Development Committee of the WBG approved the Bank's Strategic Framework on climate change and developed its Climate Investment Funds. A second fund, the Strategic Climate Fund, was also established.

2.58 The Global Food Crisis Response Program (GFRP) was established with a financial ceiling of up to US$2 billion , in addition to the Multi-Donor Trust Fund, to facilltate the involvement of a broad range of development partners to support the GFRP .

Australian Securities and Investments Commission (ASIC)

Reporting requiremen Is

2.59 The committee considers that ASIC has met its reporting requirements under the FMA Act and the Australian Securiti es and Investments Commission Act 2001.

2.60 The committee notes the absence of a Compliance Index and suggests one should be included in future annual reports .

Operational matters

2.61 According to the annual report , financial recovery from the GFC was the dominant theme throughout the financial year. Although the market has recovered somewhat, it remains below historical highs and there was continued volatility.

2.62 In their attempt to support retail investors, ASIC published a wide range of educational matetial and forced greater disclosure from those seeking to raise funds.

2.63 ASIC completed 30 civil proceedings and obtained more than $287 million in recoveries , costs and fines, with $15.5 million in assets frozen. According to the report, a key focus has been to use section 50 of the ASIC Act to 'seek compensation for investors who lose funds through failed investment schemes'. 13

2.64 The collapse of Storm Financial Limited was also investigated and at the time of the completion of the annual report, ASIC was engaged in confidential discussions seeking a conm1ercial resolution .

2.65 On the international stage, through its membership in the International Organisation of Securities Commissions (IOSCO), ASIC:

... co-led work on the regulation of securitisation and credit default swap (CDS) markets, and had an active role in IOSCO's work on supervising

13 ASIC Annual Report 2009-2010. p. 4.

50

hedge funds, over-the-counter (OTC) markets, regulating credit rating a£encies and regulatory cooperation in the supervision of cross-border ~ 0 0 14

actiVIty.

Page 19

2.66 ASIC's 151h Summer School was held in March 2010 in Melbourne. It attracted 290 external participants from across Australia and overseas. 76 ASIC delegates also attended, including Commissioners and senior leaders.

Australian Accounting Standards Board (AASB)

Reporting requirements

2.67 The committee considers that AASB has met its reporting requirements under the Act.

2.68 The committee notes the absence of a Compliance Index from this report, and suggests that one should be included in future annual reports .

Operational matters

2.69 During the financial year, AASB issued 15 new and amending standards, 18 exposure drafts and discussion papers and made 22 formal submissions to the IASB and the IPSASB. In addition, the AASB members and staff held four roundtable discussions and made 50 presentations to outside groups.

Australian Competition and Consumer Commission (including Australian Energy Regulator)

Reporting requirements

2. 70 The committee considers that the ACCC has met its reporting requirements under the Act.

2.71 The committee would like to commend the ACCC and the AER on an excellent annual report and their comprehensive Compliance Index.

Operational matters

2.72 The Australian Consumer Law (ACL) was passed, providing consumers with the same level of protection throughout Australia. The criminalisation of cartel conduct became law on 24 July 2009.

2.73 The agency noted forthcoming changes to the Franchising Code of Conduct (effective from July 201 0), which assists in providing proper information to potential franchisees and improves the dispute resolutions process.

14 ASIC Annual Report 2009-2010. p. 4.

51

Page 20

Auditing and Assurance Standards Board (A UASB)

Reporting requirements

2.74 The committee considers that AUASB has met its reporting requirements under the Act.

2. 75 The conm1ittee notes the absence of a Compliance Index.

Operational matters

2. 76 The AUASB completed its three-year Clarity project , constituting the most significant change in auditing in Australia since the introduction of legally enforceable auditing standards in 2006. The completion of Clarity was complemented by the introduction of numerous other standards, including standards designed to assist service auditors reporting on controls at a service organisation.

2. 77 The Chaim1an of the International Auditing and Assurance Standards Board (IAASB), Professor Arnold Schilder, visited the AUASB , solidifying Australia 's existing relationship with the international organisation .

2. 78 In June 2010, the CEO and the Executive Director attended the National Standard Setters Meeting in Dublin, where delegates from 15 nations met to discuss international audit and assurance standard-setting issues.

Financial Reporting Council (FRC)

Reporting req ui rem en ts

2. 79 The committee considers that the FRC has met its reporting requirements under the Act.

Op erational matters

2.80 The FRC is the peak body responsible for the oversight of the accounting and auditing standards setting processes (including appointing members, other than chairs, to the AUASB and the AASB). It is assisted by a secretariat located within Treasury.

2.81 The achievements of the FRC during the 2009-2010 fiscal year include: participation in the fourth IFRS Regional Policy Forum in Singapore in May; the hosting of a high-le vel business delegation from Japan that visited Australia to investigate the possibility of adopting the IFRS; and meeting with a range of bodies from the accounting and auditing conununities in Europe and North America.

52

Page 21

Foreign Investment Review Board (FIRB)

Reporting requirem ents

2.82 FIRE is not subject to the requirements for annual reports of government departments and agencies outlined by the Department of Prime Minister and Cabinet.

2.83 The committee suggests that a specific Compliance Index may be a useful addition to FIRE's future annual reports.

Operational matters

2.84 FIRE is a non-statutory body responsible for advising the Treasurer on foreign investment policy and administration . Secretariat services to the board are provided by the Foreign Investment and Trade Policy Division of Treasury. FIRE's financial operations are reported on in Treasury's annual reports .

2.85 In December 2009, the Treasurer announced that the Board will be expanded from four to five members (including the Executive Member).

2.86 In 2009-2010, the Board approved 4401 foreign investment proposals. This represents an 18 per cent decrease on 2008-2009 figures, during which period 5352 I -proposals were approved. )

2.87 The value of the proposed investments during 2009-2010 was $139.5 billion , which represents a 23 per cent decrease on 2008-2009 figure s. According to the Board, 'some of this decline can be explained by several large investments in 2008-09 and some is attributable to the screening threshold change'. 16

2.88 The Board reports that the mineral and exploration sector was the largest in terms of value, with approved investments totalling $80.9 billion . The U nited States was the largest source for foreign investment proposals ($39.1 billion). The United Kingdom was the second largest investor ($28.6 billion) and China was third with approved investment proposals totalling $16.3 billion in 2008-09. 17

National Competition Council (NCC)

Reporting requirem ents

2.89 The comnuttee considers that NCC has met its reporting requir ements under the Act.

15 Forei:srn Investment Review Board Annual Report. pp xv, 20, 22-23.

16 Foreign Investment Review Board Annual Report, pp xv. See also the figures on pp. 20, 22-23.

17 Foreign lm "es tment R eview Board Annual Report. pp xv. 20, 22-23.

53

Page]]

Operationalma!!ers

2.90 The NCC is a statutory authority which advises governments on third party access regulations. At the time of reporting , NCC was reviewing five infrastructure applications . On 30 June, the Australian Competition Tribunal made determinations on four applications for review of the Treasurer's decisions :

" The Treasurer's decision (as of 23 May 2006) not to declare the railway service by the Mt Newman Railway be affim1ed;

" The Treasurer's decision (as of 27 October 2008) to declare the service provided by the Robe Railway for a period of 20 years be varied so that the declaration expires on 19 November 20 18;

" The Treasure's decision (as of 27 October 2008) to declare the service provided by the Hamersley Rail Network for a period of 20 years be set aside; and

" The Treasurer's decision (as of 27 October 2008) to declare the service provided by the Goldsworthy Railway for a period of 20 years be affirmed. 1 x

2.91 Due to the concems expressed previously by the NCC, the Govemment amended the Trade Practices Act 1974. The amendments increas e regulat ory certainty and streamline administrative processes associated with the National Access Regime.

2.92 During the 2009-2010 financial year, the Council considered three applications relating to the regulation of access to the natural gas pipelines under the National Gas Law (NGL) and National Gas Rules (NGR). Each of the applications was approved.

Productil'ity Commission (PC)

Reporting requirements

2.93 The committee considers that PC has met its reporting requirements under the Act.

Operational matters

2.94 The annual report contains an article Good public policy -H∑ hy e1 "ide nce and process matter, highlighting a core focus of the Commission during the 2009-20 I 0 financial year.

2.95 Other highlights include: the release of a report Overcoming Indigenous Disadvantage; an invitation to present their findings at COAG; the receipt of a Government request to rep011 every two to tlu∑ ee years on the economic impacts and

18 ~CC. Annual Reporr 1009-1010. pp 2-3.

54

Page 23

benefit s of COAG' s agreed ref om1 agenda; a roundtable conference on evidence-based policy making; and the completion of a number of supporting research projects.

Re . ~;∑erve Bank of Australia (RBA)

Reporting requirem ents

2.96 The committee considers that the Reserve B ank has m et its reporting requirements under the A ct.

2.97 The committee notes the absence of a Compliance Index and suggests one should be included in future annual reports.

Operational matters

2.98 The annual report notes the improved economic conditi ons during 2009-2010. In the graduall y improving economic environm ent, the extraordinary m easures introduced during 2008 to assist the local econom y we re graduall y withdrawn.

2.99 It is also noteworthy that '[t]he provision of additi onal liqui dity, w hich had seen the R eserve Bank's balance sheet nearly double in size, had largely been unwo und by the end of June 2009'. 19

2.100 Due to the high value of the Australian dollar during 2009-10, the Reserve Bank recorded a loss in its eamings. The Reserve Bank reports that:

The valuation loss arising m ainly from the rise in the exchange rate am ounted to $3.R billi on, w hich was the largest l oss, in absolute tem 1s, the B ank has ever experienced.

It also noted that:

U nderlying earnings-at $R66 million in 2009/1 0-were also lower than nonnal because of the low level of global inter est rates. T he total loss, m easured in terms of the accounting standards, came to $2.9 billi on.

Royal Australian Mint (RAM)

R C'porting requirem ents

2.101 The committee considers that the RAM has m et its reportin g requirem ents under the A ct.

Op erationalmai/C'rs

2.102 There was an increase in 2009-10 in circulating coin production in an effort to m eet circulating coin dem and as well as the G overnn1ent's required buffer stock levels.

19 T7Ie Rcsen ∑e Bank Annual Report 1009-1010. p. I.

55

Page 24

2.103 The Mint returned a lower seigniorage amount this fmancial year due to a decreased demand for circulating coin.

2.104 The newly refurbished gallery was open to visitors during the financial year.

Takeovers Panel (TP)

Reporting requirements

2.105 The conm1ittee considers that the Takeovers Panel has met its reporting requirements under the Act.

2.106 The committee co11m1ends the Panel for their Compliance Index.

Operational matters

2.107 During the year, the Panel resolved a number of issues relating to takeover bids. Tllis included: Bowen Energy 02 & 02R; Multiplex Prime Property Fund 01-04; Tully Sugar Limited; Macarthur Coal Limited; and the exanlination of a number of applications relating to rights issues.

2.108 A consultation draft of the Procedural Rules was released by the Panel on 1 October 2009. Five submissions were received and the Panel adopted new Procedural Rules, wluch came into effect on 1 June 2010.

2. I 09 At the time of the publication of the annual report, the Panel was in the process of reviewing subnlissions for a consultation paper on proposed:

" Updated GN 1 Unacceptable Circumstances; and

" Draft Guidance Note on Reconm1endations and Undervalue Statements, to assist the market with guidance following a couple of recent Panel matters :involving target board reconm1endations.

Committee's concluding rentarks

The committee commends the departments and statutory bodies on the overall quality and comprehensiveness of the annual reports. The conm1ittee also notes that the annual reports examined in this chapter provide adequate details of audited financial statements. However, the committee suggests that Commonwealth bodies take note of the Prime Minister and Cabinet's annual report requirements and ensure that a 'clear read' exists between PB Statements and annual reports .20 This coherence ensures the integrity of the accountability system, particularly as it relates to the comparing of budget and perfom1ance infom1ation.

20 The D epartment of P1i me Minister and Cabinet. Requirem ents for annual reports, 8 July 2011 , subparagraph 6(2).

56

Senator Mark Bishop

Chair

57

Page 25

58

AAO

AASB

ACCC

ACRE

AER

ANSTO

ARC

ASIC

AUASB

CA

CAC Act

DRET

FMA Act

FRC

GFC

GFRP

G20

IASB

IBRD

IFRS

IIF

IMF

Appendix 1

Abbreviations

Anglo-Australian Astronomical Observatory

Australian Accounting Standards Board

Australian Competition and Consumer Commission

Australian Centre for Renewable Energy Board

Australian Energy Regulator

Australian Nuclear Science and Technology Organisation

Australian Research Council

Australian Securities and Investment Conm1ission

Auditing and Assurance Standards Board

Conm1ercialisation Australia

Commonwealth Authorities and Companies Act 1997

Department of Resources, Energy and Tourism

Financial Management and Accountability Act 1997

Financial Reporting Council

Global Financial Crisis

Global Food Crisis Response Program

Group of Twenty

International Accounting Standards Board

International Bank for Reconstruction and Development

International Financial Reporting Standards

Innovation Investment Fund

International Monetary Fund

59

Page 28

lOS CO

IPSASB

NCC

NOPSA

OTC

PC

RAM

R&D

RBA

RoLlA

TP

WBG

International Organisation of Securities Commissions

International Public Sector Accounting Standards Board

National Competition Council

National Offshore Petroleum Safety Authority

Over-the-counter

Productivity Commission

Royal Australian Mint

Research and Development

Reserve Bank of Australia

Rule of Law Institute of Australia

Takeovers Panel

World Bank Group

60

Appendix 2

Portfolio structure and outcomes for the Innovation, Industry, Science and Research Portfolio for 2009-101

Portfolio MinisteT

M inister for Innovation, lndustly, Science and Research Senator the Hon Kim Carr

Minister for Small Business, Independen t Contractors and the Service Economy 1 The Hon Dr Craig Emerson MP

Parliamentary Secretary for lnnovanon and Industry The Hon Richard Maries MP

Department of Innovation, Industry, Science and Research Portfolio Secretary: Mr Mark I Paterson A O

Outcom e 1: Enhanced opportunities for business innovation and grov,th 1hrough national leadership in converting knowledge and ideas into new proceGSes , services, products and marke table devices: fosterin g husfness cooperation; delivering advice;

assistance: and business, n easurement and online services.

Ouicome 2: The generation, u 'lisation and awareness of ∑ ::.cience and research knowleege through investment in r e~-ea rch , research training and infras tructure , science communica tion, skill developme nt and collaboration wilh induslry, uni.,.ersities and research institutes

dom estical.ly and imematio nalf) " .

I

Agency -IP Australia Director General: M.r Phili p Noonan

O uk ome: Increased innovation, investmen t and trade in .A.ustmlia, and by .A.ustralians over~ea'.l , through the adm inistration of the registrable intellectual property rights system. promoting public awareness and

industry∑ enga gem er~ . and advising ;~overnm e nt.

Agency -Australian Institu te ot Aboriginal and Torres Strait Islander Studies {AIATSlS) PrincipaljCEO): Mr Russell Taylor

O utcom e: Further understanoing of Australian Indigenous cultures, past and presem through unde rtaki ng and publishing research. and providing access to print and audio ".' lsual collections.

Agency- Commonwealth Scientific and Industrial Research Organisation (CSIRO) Chief Executive Officer : Dr Me gan C lark

O utcome: Innovative scientifi c and technology solutions to national challenges and opportunities to benefit industry, the environmen t and the commu niW, through scientifi c research and capnbili ty de~∑e lo pme n t . "

services and advice.

I

I

I

I

I

I

I

I

I

..

T-1

I

I

I

Agency- Australian Nuc lear Science and Technology Organisation .(ANSTO} Ch ief Executive Officer: Dr Adi Paterson

Ou tcome : Im proved know:edge , inno\ "ative capacity .and health care through nuclear-based facilit ies, research. tra'ning. products, ser.' ices and advice to Go∑, "ernment, industry-, the education sector and the

Australian population.

Agency -Australian Research Council (ARC) Chief Executive Officer: Professor Margaret She il

OU tcome : G ro "uth of know ledge ana inno∑. " ation through providing policy advice, meas uring research excel ence and manag ing research funding schemt>s .

Agency- Australian Institute of Mar ine Science {AIM S) Chief Executive Officer : Dr Jan Polner

Outcome: Grow th of know ledge to support pr01ecli on and sustainable de~∑e l opme n t of Australia's ma rine resources through inno.vatr11e n arim:; science and technnlogy∑ .

1 Portfolio Budget Statements 2009-2010, Innovation , Industry , Science and Research portfolio, p. 5.

61

Appendix 3

Portfolio Structure and outcomes for the Resources, Energy and Tourism Portfolio for 2009-20101

Portfolio Minister

Department of Resources, Energy and Tourism

Po rtfolio Secretary

rvlr John Pierce

Outcome 1: The improved strength, com petitiveness and

susta i nab ili t~t' of the Resou rces, Energ}' and Tourism industries to

enhance Australia 's prosperit'l through implementation of

go∑∑:emmenl policy and programs.

Geoscience Australia

Ch ief Executive Officer

Dr Ne il Williams PSM

Outcome 1: .Informed government. industry and

communi ty decisions on the economic , social

and environmenta l mana gem ent of the nation's

natural resources through enab ling access to

geoscientific and spatial information.

National Offshore Petroleum Safety

Authority Ch ief E xecutive Officer

Mr John Clegg

Outcome 1: An Aus tralian oil and gas

industry that properly controls the heaith

and safety risks to the ,, ";orkfo rce and fts

offshore petroleum operations.

T ourlsm Australia

rvlanaging D irector

Mr Geoff Buck ley

Outcome 1: Increase demand for Australia

as a destination, strengthen the travel

distribution system , and contribute to the

deve.lopm ent of a sustainable tourism

industry through consumer marketing, trade

developmen t and research activities ..

1 Portfolio Budget Statements 2009-2010, Resources, Energy and Tourism portfolio, p. 5.

62

Appendix 4

Portfolio structure and outcomes for the Treasury portfolio 2009-20101

Po rtfolio M inist e∑r-Treasur::r The Han Vv'.ayn ~ Swan M P

Ass istant Treasurer and Minister for Co mpe titi on Po li cy an d Co nsumer Affairs The Hon !:hris Bcw~ n M P

.!inister for Superannuat ion and Corporate Law S~na t o r t h~ Hen Nick Sh erry

I

Depa rtment of the TreastJry .s~cr~tary : D r Ken H:nry . .!\G

Informed d~c is io ns :::n !he rle∑~e l cpm~nt and implementa ti on of pciicie.s to improve the w∑ eiiJ)eing of the Australian people. in "" uding b)' ach i~ving s;rong, sus:ainable econom ic g r o "1 "~h . througn the pro∑ visicn of advice to gov∑ ernment and the effio i;:,nt adm inistration of ~ede : a l financial rela;ions I

Australi::m Bureau of Statistics s:atis1ician: M : B rian P ink

l'liom ed decisions. r,;;.s earoh ancf d:scussion within governments and 1he communit~∑ b~∑ leading :he ccllec:ion, a'lai ". "'S is .:.nd 'Orovis on of hiQh qual i~∑ ,r . objeciiv e and re l e∑ ~ a n : sta:istical information I

Australian Compet ition and Co nsumer Com miss.ion :::ha:rperson: Mr Grae m e Samu>: l

Lawful comoeti:ion, consumer p∑otection. and regulated nation_.,! infrastruc:urs m arke:s and services tnrough regulat∑ on, including enfcrcemen :. eaucation. pr;oe m oni:orng and determining the :erm s o: access to i.,fra;rruc:ur-" services

I

Australian Office of Financial f,\.anagement Ch ief E x ecuti ∑,∑~ Officer : Mr N eil Hy den

T o sr.ha.nc;: 1he Commom'lealth 's capacity : ":> ma nag e its net debt oorifoli o, o;;Tering :h e prospect o: s.;wings in debt servicing c.ost:. and an imo rov∑ e 'Tlen.t in the net worth cf the Commonwealth ever tim e

I

Australian Prud;;,ntial Reg ula.t.ion A uthority Ch airman : Dr John Lak:r

Enha.nced public ccn:idence in Au:.tralia' s financi. al insti:utions througn a framework of prudential regula:ion wh ich bal.anc.:s iinancial saf;::y and effici ency. compe:itl o'l , contestab'lily and comp o:-ti:ive n:utr.;.lity

I

Australian Se,curit ies and lnvestmtnts Co m mission Chairman: M rTony D 'Aioisio

Outcome 1 : lmp ro∑,oed c.onfid~nce in fmar.cial ma rket integrity and protection cf in "es:ors and consumers. !hrough resea∑ch, policy, educafon, =mpliance and d ~te r r.: n ce that m ifiga:o;,s emerg ing risks Outcome 2: S tr-=amlined and cost -e ff ~o li'. re interacb::m anc access ;o informa tion foro shess and the pub:ic, :hrough reg.strv. licensing and business facil i:ation sef\ " ices

I

Aus tralian Taxation O ∑ ff ic'!!' Comm issicn.:-r: M r M ichael D'Asco:-n.zo

Conficence in the administration cf aspec:s of Austraha's taxa1icn and superannu.a:i

:o be.nefi~s. and ma na::~ < ng r.on-comp !iance with the law I

Com m onwea lt h Gra nts Co mm ission Secretarf : M r Jo'ln Spas.o j evi~

lnformec Gov~mment decisions en iscal eq:J;;Itsation between ihe States and Territor ies through advice and reoomm.: nciabons on ihe distri bution of GST revenue and heal;b car.: Qrants

I

Corporations and Markets Adv isory Commi ttee :::onvenor: Mr R ichard S: John

Informed de-cisions O)l Governm ent on issue!:-relating to corporat.lons r.;;g r"a~c n and fina r".cia ∑orc~ u c1s, services and m arke:s through independent and e-xp-ert ad∑..-ice

1 Portfolio Budget Statements 2009-2010, Treasury Portfolio, pp 6-7.

63

Page 32

lnspector-Gt'nerai of Taxa tion lnso:ctor-Ge-neral: M r A li N oroczi

l rn pro ~∑e d t:.n adm inistration through ccmm unit) " consultation, re-view . '""d indepe-nde nt ad ", " ice t::: Governme nt

I

National Competition Council Pre-side-nt: Mr D a,vi.d C ra.wfc rd

C ompe iiti::m i:n marke is that aJe dependent on ac.~ .ss to naiiona.IIJ sigmficant monopo loy∑ infrastruc1ure. jhro " Jgh reccm:∑nenda1ions and decisions promoting 1he efficient ∑ ooeraiion of, use of and i:we∑ stm=-nt in infrastructure

I

Office of the A udit ijng and Assurance Standards B oa rd Cha irman: Ms M erran r:elsall

The formulation ana ma kin-g l)f audi'bing and assurance standards that are us.ed by auditors of Australian

en:itv financial reports or for oiher audif'nQ an.cf assurance e∑ ngaQe m ents

I

Office of the AustraliJn Accounting Standards B oard .A.cting Cha irman.: M r oruce Porter

T'1t? formu ∑\ation and mak ing of accounting stand a ds thai are used by Australia n en'tit:es tG prep,;.re finan ":; ialreports and ena.ble u-s.ers of these reoorts to m ake informed decisions

I

iProd.uctivii:y Co m mission

Cha irm an: Mr Gary El.an ~:s AO

We 'l-irtfmmed po:icydecis.ion-m aking and public under::tanding on mJ

I

Roya l Australian M int C!'lie: =::.:ecutive Officer: M s Janine Mu rphy

lhe co:nage needs cf the Aus:rali an economy , ccll ec;ors and fo "e ign ccum r1es are me : :hrough t:;, e manufacture and sale of circulating co∑ n:., collector coins and other m mted like pr:cducts

64

Appendix 5

Innovation, Industry, Science and Research Portfolio

Reporting Body

Anglo-Australian Observatory (AAO)

Australian Nuclear Science and Technology Organisation

Australian Research Council

Innovation Australia

List of annual reports tabled in the Senate during the period 1 November 2010 to 31 April2011

Legislation Date of Date sent Date

transmittal to received

letter Minister by

Minister

Australian Astronomical undated 09/11/2010 09111/2010 ObservatOT)l Act (Transitional Prm∑i.sions) 2010-section 14

Agreement bet1∑ reen the Australian Government and the Government of the United Kingdom to providefor the

establishmen t and operation qf an optical telescope at Siding Spring Mountain in the state of New South Wales-Article 8

Australian Nuclear 24/09/2010 23/09/2010 24/09/2010 Science and Technology Organisation Act 1987-section 29

Commonwealth Authorities and Companies Act 1997-section 9

Australian Research 20110/2010 21/10/2010 21/10/2010 Council Act 2001

Public Sen∑ice Act 1999 subsection 63(2)

Industl )' Research and undated D evelopment Act 1986-

65

Date tabled/ presented*

24/1112010

16/11/2010

(tabled in HOR 28110)

16/11/2010

(tabled in HOR 28110)

03/03/2011

Page 34

Reporting Body Legislation Date of Date sent Date Date

transmittal to received tabled/

letter Minister by presented*

Minister I I

section 46

(tabled in HOR

21103/1 1)

Innovation

Commoml' ea!th 27/10/2010 28110/2010 28/10/2010 2411112010

Im∑ estment Fund Authorities and

(IIF) Companies Companies Act 1997-section 36

C01porations Act 2001

I

Appendix correct for all reports tabled in 2010. Reports tabled in 201 1 TBA.

66

Reporting Body

Department of Resources, Energy and Tourism

(including Geoscience Australia)

National Offshore Petroleum Safety Authority

Appendix 6

Resources, Energy and Tourism Portfolio

List of annual reports tabled in the Senate during the period 1 November 2010 to 31 Apri12011

Legislation Date of Date sent Date

transmittal to received

letter Minster by

Minister

Public Sen 'ice Act 14110/2010 21110/2010 21/10/2010 1999-section 63

Financial Mana gem ent and Accountability Act 1997

Offshore Petroleum 13110/2010 20110/2010 20/10/2010 and Greenhouse Gas Storage Act 2006 section 690

Financial Mana gem ent and Accountabilit y Act 1997- section 49

Public Service Act 1999- subsection 70

67

Date tabled/ presented*

16/1112010

(tabled in H oR 28/10)

1611 1/2010

(tabled in HOR 28/10)

Page 36

Australian Financial 12/2010 N /A N /A 9/02/2011

Centre for Management and

13/01/2011 *

Renewable Accountability Act Energy 1997

(tabled in HOR

Australian Centre

9/02111)

for Renewable Energy Act 2010-Section 25

Snowy Hydro Snowy Hydro 25/08/2010 N /A N IA 21103/2011

Ltd C01porations Act

16/03/2011 *

1997-section 55

(tabled in HOR

21/0312011)

Appendix correct for all reports tabled in 2010. Reports tabled in 2011 TBA.

68

Reporting Body

Auditing and Assurance Standards Board (AUASB)

Australian Accounting Standards Board (AASB)

Australian Competition and Consumer Commi ssion, incorporating the

Australian Energy Regulator

Australian Securities and Investments

Appendix 7

Treasury Portfolio

List of annual reports tabled in the Senate during the period 1 November 2010 to 31 April2011

Legislation Date of Date sent Date

transmittal to received

letter Minister by

Minister

Australian 04110/2010 15/10/2010 15110/2010 Securities and lm'estments Commission Act 2001 - section 236DG

Financial Manag em ent and Accountabi/itv A ct 1997

Australian 04/10/2010 15/10/2010 15110/2010 Securities and Investments Commission Act 2001-section 235J

Financial Manag em ent and Accountabili ty Act 1997

Trade Practices Act 27/08/2010 21 /09/2010 21 /09/2010 19 7 4-sections 44AAJ and 171(1)

Financial Manag em ent and Accountabilitr Act 1997

Australian 07/10/2010 08/10/20 I 0 08/10/2010 Securiti es and Investments

69

Date tabled/ presented*

16/1112010

(tabled in HOR 2811012010)

16/11/2010

(tabled in HOR 2811012010)

1611112010

(tabled in HOR 2811012010)

16/11/2010

(tabled in HOR

Page 38

Reporting Legislation Date of Date sent Date Date tabled/

Body transmittal to received presented*

letter Minister by

Minister

Commission Commission Act 2811012010)

(ASIC) 2001 -section 136

Financial Managem ent and Accowztability Act 1997

Financial Australian 11 /10/2010 1911 0/2010 19/10/2010 1611 1/20 10

R eporting Securities and Council Investments (tabled in HOR

Commission Act 2811012010)

2001 -section 2 35B

National Trade Practices Act 27 /08 /20 10 25/10/2010 25110 /2010 1611 1/2010 Competition 1974-section 290. Co uncil (tabled in HOR

2811012010)

Productivity Productivi tl' 14/10/2010 19/10/2010 19/10/20 10 16111120 10 Commis sion Commission Act 1998 - s∑ccti on 10 (tabled in HOR

28110/201 0)

Financial Manag em ent and Accountability Ac:t 1997

Reserve Bank of Resen "e Bank Act 17/09/20 10 2 1109/20 10 2 1/09/20 10 16/1 1/2010 Australia (RBA) 1959- section 7 (tabled in HOR Commonwea lth 2811012010)

A whoriti es and Co m panies Act 199 7-section 9

No statutory

" Payments requirement 16/11/2010

System 17/09/20 10 12/10/2010 12/10/2010 (tabled in HOR

Board 2811012010)

Equal Employm ent Opportunit y

" Equity & (Commomve alth 16/11/2010 Diversity Authoriti es) Act 70

Page 39

Reporting Legislation Date of Date sent Date Date tabled/

Body transmittal to received presented*

letter Minister by

Minister

annual 1987 - section 9

17/09/2010 21/09/2010 21/09/2010 (tabled in HOR

report 2811012010)

Royal Australian Public Service Act 06/09/2010 21/10/2010 2111 0/2010 16/11/2010 Mint 1999 - subsection

63(1) (tabled in HOR

28/1012010)

Financial Manag em ent and Accountability Act 1997

Takeovers Panel Australian 26/08/2010 05/10/2010 05110/2010 16/11/2010 Securities and Investments (tabled in HOR

Commission Act 28/1012010)

2001 -section 183

Public Sen 'ice Act 1999-subsection 70(2)

Appendix correct for all reports tabled in 2010. Reports tabled in 2011 TBA.

71

72

The Senate

Education, Employment and Workplace Relations Legislation Committee

Annual reports (No.2 of2011)

August 2011

73

©Commonwealth of Australia 20 II

ISBN 978-1-74229-505-3

Printed by the Senate Printin g Unit, Parliament Hou se, Canberra.

74

Senate Legislation Committee on Education, Employment & Workplace Relations

Members

Senator Gavin Marshall, Chair Senator Cluis Back, Deputy Chair Senator Michaelia Cash Senator Catryna Bilyk Senator Lee Rhiannon Senator Matt Thistlethwaite

Secretariat

Mr Tim Watling, Secretary Ms Bonnie Allan, Principal Research Officer Ms Natasha Ru sjakovski, Senior Research Officer Mr Janod Baker, Research Officer Mr Dylan Harrington , Administrative Officer

PO Box 6100 Parliament House Canbena ACT 2600 Ph: 02 6277 3521 Fax: 02 6277 5706 E-mail: eewr.sen@ aph.gov.au

Victoria, ALP

Western Australia , LP Western Australia, LP Tasmania, A LP New South Wales, AG New South Wales, ALP

Internet: http://www.aph.gov.au/senate/committee/eet cttelindex.htm

...

Ill

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TABLE OF CONTENTS

TABLE 0 F CONTENTS ................................................................................... v

Chapter 1 ............................................................................................................. ]

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

T en.ns of reference ....... .... ......... ..... ........... ..... .... ........... ............. ........ .......... .... ..... .. 1

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

AJmual repo11s referred .... ........................... ............ ....... ..... ................. ... ...... .... ...... 2

Reports not exan1ined ...... ........... ........ ..... .... ...... ..... ............... ........ ..... ...... ......... ... .. 2

Method of assessment ......... ....... ........ ....... ......... ............ ........... ............... ......... ...... 2

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

General conm1ents on repo11s ........ ........ ............ .......... ...... ........ ............ ...... ...... ..... 3

Chapter 2 ............................................................................................................. 5

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

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

Coal Mining Industry (Long Service Leave Funding) Corporation .................. ..... 5

Australian Institute of Teaching and School Leadership ........ ........ ........ ........ ...... . 6

National Report to Parliament on Indigenous Education and Training .... .......... ... 7

Comments made in the Senate ........................ .................................. .... .... ............ . 7

Bodies not presenting annual reports to the Senate ...... .................... .... ........ .......... 7

Appendix 1 ........................................................................................................... 9

Allocation of annual reports to the conm1ittee ............ ...... .......... ...... ........ .... .... .... ..... 9

Appendix 2 ......................................................................................................... 11

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

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VI

78

Chapter 1

Introduction

1 .1 Tllis is the Senate Education, Employment and Workplace Relations Legislation Conm1ittee's (the committee) second report on annual reports for 2011. It provides an overview of the conm1ittee's examination of annual reports for the 2009-10 financial year tabled between 1 November 2010 and 30 April 2011.

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 repo11 is apparently satisfactory.

(b) Consider in more detail, and report to the Senate on, each annual repot1 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 perfonnance of the bodies fumishing the annual reports .

(h) Repot1 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

Amended 24 Augu st 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.

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2

Role of annual reports

1.3 Annual reports place a great deal of information about government depar1ments and agencies on the public record. Accordingly, the tabling of annual rep011s is an important element of accountability to Parliament, assisting in the effective examination of the performance of departments and agencies, and the administration of governn1ent programs.

Annual reports referred

1.4 In accordance with Senate Standing Order 25(20)(t) this report examines those annual reports tabled between 1 November 20 10 and 30 April 2011. The committee examined the reports of:

Statut01y authorities /bodies

" Safe Work Australia

Commonwealth authorities under the Commonwealth Authorities and Companies Act

" Coal Mining Industry (Long Service Leave Funding) Corporation

Commonwealth companies under the Common wealth A uthoriti es and Companies Act

" Australian Institute for Teaching and School Leadership Limited

1.5 The tabling dates of these reports are listed at Appendix 2. Details of all annual reports referred to the con1mittee 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:

" Agreement making in Australia under the Workplace Relations Act 2007-9

Method of assessment

1. 7 Senate Standing Orders require the conm1ittee to examine the annual reports referred to it to determine whether they are timely and 'apparently satisfactory'. In making this assessment, the conu11ittee considers whether the reports comply with the relevant requirements for the preparation of annual reports of departments and authorities.

1.8 The requirements are set down in the following instruments :

" for portfolio departments: the Public Service Act 1999, sections 63(2) and 70(2), and the Requirements for D epartmental Annual Report, for D epartments, Executive Agencies and FMA Act Bodies, Department of Prime Minister and Cabinet, revised June 2008;

80

3

" for Commonwealth authorities and companies: the Commonvr ealth Authorities and Companies Act 1997, in particular sections 9, 36 and 48; 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.

1.9 The committee notes that the Joint Committee of Public Accounts and Audit has approved changes to the annual reporting requirements for departments, executive agencies and FMA Act bodies for the 201 1- 12 reporting period. All affected entities should familiarise themselves with the updated requirements.

Timeliness in tabling annual reports

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

1.11 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 Commonw ealth Authoriti es 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

1.12 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

1.13 The committee has found, under the tem1s of standing order 25(20), that all reports described here are apparently satisfactory . In making this assessment, the committee considers aspects such as the timeliness of presentation and compliance with relevant reporting requirements.

Department of Prime Minister and C abinet, R equirem ents .for Annual Reports .for Departments. Executive Agencies and FM A Act Bodies, June 2009, p. 1.

Co mm onwealth Authorities and Co m panies Act 1997, section 9.

81

4

82

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 interest to senators. The reports of the Safe Work Australia , the Coal Mining Industry (Long Service Leave) Corporation , and the Au stralian Institute for Teaching and School Leadership are discussed in this chapter.

Safe Work Australia

2.2 Safe Work Au stralia (SWA) was establi shed as an independent statutory agency in 2009 with the primary responsibility of in1proving work health and safety and workers' compensation arrangements across Australia.

2.3 During its first year SWA has developed and released an exposure draft of the M odel Work H ealth and Safety Act (WHS Act) for public comment. The WHS Act was endorsed by the Workplace Relations Ministers' Council in December 2009. Following approval of the m odel WHS Act, SWA is developing WHS Regulations

and Codes of Practice for implementation by the Commonwealth , states and territories by the end of Decemb er 2011.4

2.4 Throughout the reporting period, SW A continued its advocacy role encouraging safer workplaces. National Safe Work Au stralia Week, held between 25 and 31 October 2009, was used to encourage workers around the country to consider safety at work and ways to reduce workplace injuries. Evaluation surveys of participants who were Safety Ambassadors and Safety Partners revealed that

99.9 percent of respondents would participate again. 5

2.5 SWA's 2009-10 annual report was its first annual report as an independent statutory agency. The committee commends SW A for the quality and clarity of its annual report. The committee notes that the report wa s received by the Minister on 28 October, but not tabled until 24 November 2010.

Coal Mining Industry (Long Service Leave Funding) Corporation

2.6 Established by the Coal Mining Industry (Long Service Leave Funding) Act 1992 the Coal Mining Industry (Long Service Leave Funding) Corporation (Corporation) is responsible for the administration of the Coal Mining Industry Long Service Leave Fund (Fund). The Fund was created to finance employee entitlement to long service leave based upon industry service rather than with any single employer.6

4

6

Safe Work Au stralia, Safe Wo rk Australia A nnual Report 2009-10, p. 23.

Safe Work Au stralia , Safe W ork Australia Annual Report 2009-10, p. 32-3.

C oal Mining Industry (Long Service Leave Funding) Corporation, Annual Report 2010, p. 2.

83

6

2. 7 The report notes that support for the goals of the Fund remain strong, and that:

Employers and unions in the black coal mining industry have reviewed cuiTent arrangements for funding employee long service leave entitlements and have reached agreement that the coal mining industry long service leave funding legislation should be amended to secure the existing level of employee entitlement to long service leave, to improve the operation of the scheme, to provide certainty, to facilitate compliance, to simplify the administration of the scheme and to ensure that the scheme is properly funded. 7

2.8 On 26 November 2009 the Parliament of Australia passed the Coal Mining Industry (Long Service Leave funding) Amendment Bill 2009 ensuring the ongoing operation of the Fund and universal coverage from 1 January 2010.

2.9 In accordance with legislative requirements, the Fund is subjected to periodic actuarial review. The rate of levy payable by employers is set having regard to the findings of these reviews which estimate future liabilities and the adequacy of current assets to meet their cost as and when they fall due. The most recent actuarial review, as at 30 June 2009, concluded that the levy remain at 2.7% of 'eligible wages'. 8

2.10 To improve the useability of the report, the committee encourages the Corporation to include a glossary and alphabetical and compliance indexes in future annual reports.

Australian Institute of Teaching and School Leadership

2.11 The Australian Institute of Teaching and School Leadership (AITSL) commenced operations on 1 January 2010 when it succeeded Teaching Australia; the 2009-1 0 annual report is the first presented by AITSL. 9 AITSL was established to provide national leadership for Conunonwealth, state and territory governn1ents in promoting excellence in the profession of teaching and school leadership. The annual report provided was prepared in compliance with section 36 of the Commonwealth Authorities and Companies Act 1997.

2.12 In line with its role of ensuring high quality teachers in Australian schools, in March 20 10 the Department of Immigration and Citizenship amended its legislation to designate AITSL as the migration assessing authority for pre-primary, primary and secondary school teachers. 10

2.13 AITSL invited 110 stakeholders from government and non-government schools and school systems, national education bodies, professional associations ,

9

10

Coal Mining Industry (Long Service Leave Funding) Corporation, Annual Report 2010, p. 2.

Coal Mining Industry (Long Service Leave Funding) Corporation, Annual Report 2010, p. 7.

Australian Institute of Teaching and School Leadership, Annual Repol"! 2009-10, p. 6.

Australian Institute of Teaching and School Leadership, Annual Report 2009-10, p. 19.

84

7

teacher education unions, teacher educators , and other leaders to its inaugural Key Stakeholder Forum on 21 June 2010.

2.14 The AITSL annual report also includes reporting information for Teaching Australia for the period: 1 July-31 December 2009. 11

National Report to Parliament on Indigenous Education and Training

2.15 The National Report to Parliament on Indigenous Education and Training had not been produced since the 2006 edition was published in 2008. The National Report to Parliament on Indigenous Education and Training for the years 2007 and 2008 were tabled on 10 May 2011. These reports fall outside the terms of reference for this report, therefore they will be more fully examined in the Committee's Report on Annual Reports (No. I) 2012.

Comments made in the Senate

2.16 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 cornn1ents to consider for these reports .

Bodies not presenting annual reports to the Senate

2.17 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.

Senator Gavin Marshall

Chair

II

Australian Institute ofTeaching and School Leadership, Annual Report 2009-10, p. 23.

85

8

86

Appendix 1

Allocation of annual reports to the committee

Education, Employment and Workplace Relations

" Department of Education, Employment and Workplace Relations

Education

" Australian Curriculum, Assessment and Reporting Authority

" Australian Institute for Teaching and School Leadership Ltd [Teaching Australia]

" Australian Learning and Teaching Council Limited [formerly the Canick Institute]

" Australian National Training Authority National Report [Australian vocational and further education and training system]

" Australian National University (ANU)

" Department of Education, Employment and Workplace Relations

" Indigenous Education (Targeted Assistance) Act 2000-lndigenous education and training - National report to Parliament

" Schools Assistance (Learning Together- Achievement Through Choice and Opportunit y) Act 2004- Report on financial assistance granted to each state in respect of (year)

" Schools Assistance Act 2008-Report on financial assistance granted to each state in respect of (year)

Employment and Workplace Relations

" Air Passenger Ticket Levy (Collection) Act 2001

"

"

"

"

"

Australian Building and Construction Commissioner

Australian Industrial Relations Commission and Australian Industrial Registry

Coal Mining Industry (Long Service Leave Funding) Corporation

Comcare Australia

Defence Force Remuneration Tribunal 12

" Department of Education, Employment and Workplace Relations

" Department of Education, Employment and Workplace Relations " Agreement making under the Workplace Relations Act 1996

12

Forwarded to the Foreign Affairs, Defence and Trade Committee also.

87

10

" Fair Work Australia

" Workplace Authority

" Fair Work Ombudsman

" Remuneration Tribunal

" Safe Work Australia

" Safety, Rehabilitation and Compensation Commission

" Seafarers Safety, Rehabilitation and Compensation Authority (Seacare)

" Skills Australia

88

OJ

Appendix 2

Compliance table of annual reports referred

List or annual report s rererrcd by the Senate to the committee during the period 1 November 20 10 to 30 /\pril 2011

Education, Employment and Workplace Relations portfolio

Body/Report Enabling legislation and Letter of Submitted Presented Tabled

timeliness Transmittal to/Received out of session Date by Minister

Australian institute for Teaching Co mmonwealth Authorities 28/09/20 10 01/ll /20 10 - Reps: and School Leadership Ltd and Compa nies Act 1997 I5/II/20 I 0

(Teaching A ustralia )

Senate: 15/II /20 I 0

Coal Mining Industry (Long Commonwealth Authorities 13/l 0/20 I 0 14/12/20 I 0 - Reps:

Service Leave Funding) and Compan ies Act 1997 09/02/20 II

Corporation

Senate: 09/02/20 II

Agreement making under the Workplace Relati ons Act 1996 - 30/09/201 0/ - Reps:

Workplace R elati ons Act 1996 and section 18 of Schedule 20 0 III 0/20 I 0 01 /10/20 I 0

of the Fair Work (Transitional and Senate:

Consequential Amendments) 23 /II/2010 .._

Timeliness

On time

O n time

On time

0

Body/Report

Safe Work Australia

Enabling legislation and Letter of timeliness Transmittal

Date

Act 2009

Safe Work Australia Act 2008 20/l 0/20 I 0

Submitted Presented Tabled Timeliness

to/Received out of session by Ministea∑

20/ I 0/20 I 0/ - Reps: On time

28/10/20 I 0 24/11 /2010

Senate:

24/11 /2010

12

The Senate

Environment and Communications Legislation Committee

Annual reports (No. 2 of 2011)

A ugust 2011

91

©Commonwealth of Australia 2011

ISBN 978-1-74229-506-0

This document was printed by the Senate Printin g Unit, Parliament House, Canbena

92

Committee membership

Members Senator Doug Cameron (ALP, NSW) (Chair) Senator Mary Jo Fisher (LP, SA) (Deputy Chair) Senator Catryna Bilyk (ALP, T AS) Senator Bridget McKenzie (NATS, VIC) Senator the Hon Lisa Singh (ALP, TAS) Senator Larissa Waters (AG, QLD)

Committee Secretariat Mr Stephen Palethorpe , Secretary Ms Jacquie Hawkins, Research Officer

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/se nate/committee/ec _ ctte/index.htm

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Committee membership

Report to the Senate

Introduction

Annual reporting requirements

Apparently satisfactory

Purpose of annual reports

Reports referred to the Committee

Remarks made in the Senate

Timeliness

Conm1ents on annual report

Contents

Bodies not presenting annual reports to the Senate

Summary

Appendix 1 - Annual reports referred to the Committee

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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 Energy Efficiency ; and

" Sustainability, Environment, Water, Population and Communities.

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 rep011 is apparently satisfactory.

(b) Consider in more detail , and report to the Senate on, each annual rep011 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 rep011, take into account any relevant remarks about the rep011 made in debate in the Senate.

(e) If the committee so detem1ines, consider annual reports of departments and budget-related agencies in conjunction with examination of estimates.

(f) Rep011 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 rep011s.

(h) Rep011 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 I November 2010 to 30 April2011 as required by standing order 25(20)(f).

Annual reporting requirements

1.4 On 23 June 2010 the Joint Committee of Public Accounts and Audit (JCP AA) approved revised Requirements for Annual Reports for D epartments, 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

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financial year ending on 30 June 2010.1 Under the Requirements, annual reports of departments and executive and prescribed agencies must be tabled by 31 October. 2

1.5 Under section 48 of the Common wealth Authorities and Compan ies Act 1997 (the CAC Act), the Minister for Finance outlines the annual reporting requirement s for Conm1onwealth authorities and companies in the Commonw ealth A uthoriti es and Companies (Report of Op erations) 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 Conm1onwealth 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 reconm1endations of the then Senate Standing Committee on Finance and Government Operations in its report entitled , Reporting Requirem ents for the Annual Reports of Non-Statut01y Bodies. The response was incorporated into the Senate Hansard of8 December 1987.3

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.

4

Revised Requirements, dated 8 July 2011, to apply to annual reports for the financial year ending on 30 June 2011 are available at www .dpmc.gov.au/guideline s/index.cf m.

2 Department of the Prime Minister and Cabinet, Requirem ents for Annual Reports for D epartments. Executive Agencies and FMA Act Bodies, 23 June 2010, p. 2.

3 Official Senate H ansard, 8 December 1987, pp 2643-45. 4 Depaiiment of the Prime Minister and Cabinet, Requirem ent'> .for Annual Reports for D epartments, Executive Agencies and FMA Act Bodies, 23 June 2010, p. 3.

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Reports referred to the Committee

1.10 This report reviews ten reports from the Broadband, Communications and the Digital Economy portfolio and three reports from the Sustainability , Environment, Water, Population and Communities portfolio . 5

1.11 The following reports have been referred to the committee:

Prescribed agencies Murray-Darling Basin Authority- Annual Report 2009-20 I 0

Statut01y authorities National Environment Protection Council-Annual Report 2009-20 I 0

Reports on the operation of Acts/Agreements Australian Broadcasting Corporation Equity and Diversity Annual Report 1 September 2009 to 31 August 201 0

Australian Conmmnications and Media Authority Communications Report 2009-20 I 0

Australian Competition & Consumer Commission Teleconmmnications competitive safeguards for 2008-2009 Changes in the prices paid for telecommunications services in Australia 2008-2009

Australian Heritage Council-Periodic Report March 2007-May 20 I 0

Australian Postal Corporation (Australia Post) Equal employment opportunity program - Report for 2009-201 0

Statement of Corporate Intent 20 I 0111-2012/13

Department of Broadband, Communications and the Digital Economy Report on Digital Television Transmission and Reception, Decemb er 2010

The operation of the Prohibition of Advertisements of Interactive Gambling Services under the Interactive Gambling Act 2001 - 2007, 2008, 2009 and 2010

1.12 Appendix 1 provides an alphabetical record in more detail, including:

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

5 On 14 September 2010, this portfolio was renamed the Sustainability , Environment, W ater, Population and Communit ies portfolio.

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4

" dates indicating the progressive stages m presentation of the annual reports; and

" 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 the following reports were the subject of comment in the Senate:

" Australia Post: Statement of Corporate Intent 20 I 0-11 to 2012-136 and Equal Employment Opportunity Program Report for 2009-1 0, Senator Macdonald. 7

1.14 The committee notes that the following annual reports, reported on in this report and in Report No. 1, remain on the Notice paper under Orders of the Day relating to Governn1ent Documents:

" Department of Broadband, Conmmnications and the Digital Economy ;

" Australian Postal Corporation (Australia Post); and

" Office of the Renewable Energy Regulator-Financial Report for 2009-10

Timeliness

1.15 The Requirements state that if a department is unable to meet the tabling deadline, the secretmy may seek an extension of time to report 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. 8

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 A ccountability Act 1997 (the FMA Act). Under section 36 of the CAC Act, the content of annual reports of

6 Senate Han sard. 23 November 2010. p. 1968. Senator Macdonald noted Australia Post's community service obligations with particular reference to issues surrounding the Rockhampton Mail Centre.

7 Senate Han sard, 23 November 2010, p. 1969. Senator Macdonald noted the effect s of Rockhampton Mail Centre operation s on its neighbours.

8 Department of the Prime Minister and Cabinet, Requirem ents for Annual Reports for D epartments, Executive Agencies and FMA Act Bodies, Canberra, 23 June 2010, p. 2.

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Commonwealth companies is based on reporting requirements under the Corporation Act2001. 9

1.17 The committee notes that the annual report of the Murray-Darling Basin Authority did not meet all the reporting deadlines. The report was both submitted to and received by the Minister on 22 November 2010. It was tabled in the House of Representatives on 25 November 2010 and in the Senate on 9 February 2011, thereby missing the 31 October tabling deadline.

1.18 In previous reports on annual reports , the committee has acknowledged advice from the National Environn1ent Council that its enabling legislation requires it to include reports by each member of the Council (ie Commonwealth , State and Territory ministers) in its annual report which leads to its report being tabled after 31 October each year.

10

1.19 The committee notes that the Department of Broadband, Communications and the Digital Economy tabled four reports , covering 2007, 2008, 2009 and 2010, on "The operation of the Prohibition of Advertisements of Interactive Gambling Services under the Interactiv e Gambling Act 2001" on 9 February 2011, having been presented out of session on 19 Janua1y 2011.

1.20 The Requirements state that 'where an agency's own legislation provides a timeframe for its annual repot1 ... that timeframe applies ... However, it remains the Government's policy that all annual reports should be tabled by 31 October'. 11 The committee encourages agencies to table annual reports in a timely manner.

Comments on annual reports

Murray-Darling Basin Authority-Annual Report 2009-2010

1.21 The Authority's report covers the first full year of the Authority's operations.

1.22 The report notes milestones achieved in developing the proposed Basin Plan including:

" identifying the Basin's key environmental assets and key ecosystem functions;

" finalising its stakeholder engagement strategy;

9 Department of the Prime Minister and Cabinet, Requirem ents for Annual R eports for D epartments, Executive Agencies and FMA Act Bodies, Canberra, 23 June 2010, p. 2.

10 See, for example, Environment and Communications Legislation Committee. Annual Reports (No 2 of20JO),September 2010; Environment, Communications and the A11s Legislation Committee, Annual reports (No. 2 of 2009), September 2009; and Annual reports (No. 2 of 2002), September 2002, pp 28-29. 11 Department of the Prime Minister and Cabinet, Requirem ents/or Annual Reports for

D epartments, Executive Agencies and FMA Act Bodies, Canben∑a, 23 June 2010, p. 2.

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" developing a new water-sharing schedule to the Murray-Darling Basin Agreement;

" progressing the sustainable diversion limit compliance method, environmental watering plan, water quality and salinity management plan, and a monitoring and evaluation program for the plan's implementation; and

" developing a process for accrediting and reviewing water resource plans. 12

1.23 Throughout the reporting year the Authority , the Basin Community Com1nittee and the Basin Officials Committee held regular meetings on the development of the plan. as well as a series of stakeholder meetings, a peak body forum, a government and science forum and an Indigenous Australian gathering as part of the consultative process.

13

1.24 The Authority is responsible for a number of programs to assist m the integrated management of all water resources across the Basin, such as:

" managing the Murray's flows to ensure water is available for essential water requirements;

" implementing the Cap on surface-water diversions for each river valley in the Basin;

" numnusing the impact of salinity by implementing the Basin Salinity Management Strategy;

" providing overall coordination of the Living Murray program, a joint initiative of the Australian Government and the governments of New South Wales, Victoria , South Australia and the Australian Capital Territory; and

" monitoring the long-term health of the Basin's rivers through the Sustainable Rivers Audit. 14

1.25 The report foreshadows the release of the proposed Basin Plan and the continuing projects aimed at developing the most effective ways of balancing water supplies in the Basin.

Bodies not presenting annual reports to the Senate

1.26 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.

I 2 Murray-Darling Basin Authority Annual Report 2009-10, p. v.

13 Murray-Darling Basin Authority Annual Report 2009-10, p. v.

I 4 Murray-Darling Basin Authority Annual Report 2009-10, pp v-viii .

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Summary

1.27 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.

1.28 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 conm1endably 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.

1.29 Accordingly, the conm1ittee reports its finding that the annual reports referred to it for examination and tabled in the period under examination were apparently satisfactory.

Senator Doug Cameron Chair

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APPENDIX 1

Annual reports referred to the Environment and Communications Legislation Committee between 1 November 2010 and 30 April2011

Broadband, Communications and the Digital Economy portfolio

Name Type 15 Dates16 Tabled 17

Australian Broadcasting Corporation Equity Report on the A. - 01103111 and Diversity Annual Report l September operation of B. 22/12/l 0 (Tabled 2009 to 31 August 2010 an Act c. 05/01/11 House of Reps,

23/02/11)

Australian Communications and Media Report on the A. 03/11/l 0 09/02/11 Authority operation of B. - (Received

Communications Report 2009-10 an Act c. - 09/12/l 0)

Australian Competition & Consumer Report under A. 01/06110 16/11/10 Commission paragraphs B. 29/10/10

Report 1: Telecommunications 151 CL(l) c. 20/10/10

competitive safeguards for 2008-2009 and Report 2: Changes in the prices paid for 151CM(l)(a) telecommunications services in Australia ofthe Trade 2008-2009 Practices Act

1974

Australian Postal Corporation Report on the A.- 23/11/10

Equal employment oppmtunity program operation of B. 21/l 0110 Report for 2009-1 0 an Act c. 21/10/10

Statement of Corporate 1 ntent 20 I 0/ l 1- A.-

2012/13 B. 02/11/10

c. 03/11/l 0

15 Statutory Authority includes statutory office-holders.

16 Dates shown are: A The date shown on a lett er 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)

17 The date in parenthesis shows the date that the report was presented out of sessio n to the President I Deputy President I Temporary Chairman of Committees.

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Name Type Is Dates16 Tabled 17

Depa11ment of Broadband, Communications Report on the A. - 09/02/11 and the Digital Economy operation s of B . 3 110111 1

Report on Digital Television Transmission Acts c. 02/0211 1 and Reception, December 2010

The operation of the Prohibition of A. - 09/02/11

Advertisements of Interactive Gambling B. 31/0111 1 (Received

Services under the Interactive Gam bling c. 02/02/11 19/0111 1

Act 2001 -2007. 2008. 2009 and 20 I 0

Sustainability, Environment, Water, Population and Communities portfolio

Name Type Is Dates19 Tabled

20

Australian Heritage Council Prescribed A. - 22/03/11

Periodic Report, March 2007-M ay 20 I 0 agency B . 31101 /11 c. 31/01 11 1

Munay-Darling Basin Authority Prescribed A . 07/10/10 09/0211 1

Annual Rep011 2009-20 I 0 agency B . 22/11/10 (Tabled

c. 22/11/10 Hou se of Reps, 2511 1/1 0)

N ational Environment Protection Council Statutory A. - 01/03/110

Annual Report 2009-20 I 0 Authority B . 21/02/11 (Tabled

c. 21102/11 H ouse of Reps, 23/0211 1)

I 8 Statutory Authorit y includes statutory office -holder.

I 9 D ates show n 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 Bu siness (if any) C D ate received by the M inister, as recorded in the Senate's O rder of Business (if any)

20 The date in parenthesis show s the date that the repmi w as presented out of session to the President I D eputy President I Temp orary C hairm an of Committees.

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The Senate

Finance and Public Administration Legislation Committee

Annual reports (No.2 of2011)

A ugust 2011

107

©Commonwealth of Australia 2011

ISBN 978-1-74229-507-7

The Senate PO Box 6100 Parliament House Canberra ACT 2600 Ph: 02 6277 3530

Fax: 02 6277 5809 E-mail: fpa.sen (waph.2:ov.au Internet: www.aph.gov.au/senate fpa

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

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Membership of the Committee

Members

Senator Helen Polley (Chair)

Senator Scott Ryan (Deputy Chair)

Senator the Hon John Faulkner

Senator the Hon Ursula Stephens

Senator Sean Edwards

Senator Richard DiNatale

Participating members

ALP, TAS

LP, VIC

ALP, NSW

ALP, NSW

LP , SA

AG, VIC

Senators Abetz, Adams, Back, Bernardi, Bilyk, Birn1ingham, Bishop, Boswell, Boyce, Brandis, Bob Brown , Carol Brown , Bushby, Cameron, Cash, Colbeck, Coonan, Cormann, Crossin, Eggleston, Fawcett, Fierravanti- Wells, Fifield, Fisher, Furner, Gallacher , Hanson-Young, Heffernan, Humphries, Johnston, Joyce, Kroger, Ludlam, Macdonald, Madigan, Marshall, Mason, McEwen , McKenzie, Milne, Moore, Nash, Parry, Payne, Pratt, Rhiannon, Ronaldson, Scullion , Siewert, Singh, Sterle . Thistlewaite, Urquhart, Waters, Williams, Wright and Xenophon.

Secretariat

M s Christine McDonald

Dr Bu Wilson

Ms Kyriaki Mechanicos

Ms Victoria Robinson-Conlon

Ms Penelope Bear

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Committee Secretary

Principal Research Officer

Senior R esearch Officer

Research Officer

Administrative Officer

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TABLE OF CONTENTS

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

Report on annual reports ................................................................................... !

Intr oduction ... ...... .......... .......... ......... .... ........... ........... ........ ... ........ .... .... ........... ...... 1

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

A llocated portf olios ... .... ... ...... ..... ..... ...... .......... ...... ........... .... ........... .......... ......... ... 2

Method of assessm ent. .... ..... ....... ......... ....... .......... ...... ...... ....... ..... ............ .............. 2

Repo11s examined ...... ........ .......... ..... ....... ... .......... ...... .... ..... .......... ...... ... ......... ....... 4

No n-reportin g bodies ..... ... ........ ...... ......... ........ ............ .............. ...... ..... ... ......... ...... 5

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

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

C orrections . ........................ ............... ...... ....... ..... .... ..... .... ......... ........ ....... ............ ... 7

G overnment responses to conm 1ittee reports on annual repm1s .... ... ........ .............. 7

Selected agencies and reports ........................ ...... ............. ........ .... ...... ................ .... 9

A ustralian Electoral Commi ssion .......... ... ............. ................. ....... ......... ..... ..... ... 9

A ustralian Public Service Commi ssioner. .......... ..... ......... ..................... ........... . 10

O ffice of the Com mo nwealth Ombud sm an ..... .... ..... ... ........... ....... ....... ............ . 11

A ustralian Sports Anti-D oping Authority ...... ......... ......................... ...... ..... ...... 12

National Capital Authorit y ............ .... ....... .... ...... ...... ...... ........ .......... ... ......... ... .. 12

A lbury-Wo donga D evelopm ent Corporation ............. ...... ................ .... .......... ... 13

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

D ates relating to the timeliness of presentation and debate in the Senate ............ 15

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Report on annual reports

Introduction

1.1 This is the Senate Finance and Public Administration Legislation Committee's (the committee) second report on annual reports for 2011. It provides an overview of the committee's examination of annual reports for the 2009-10 financial year presented to the Parliament between 1 November 2010 and 30 April 2011. Copies of this and other committee reports can be obtained from the Senate Table Office, the committee secretariat or online at: www.aph. !!Ov.au/senate fpa.

Terms of reference

1.2 Under Senate Standing Order 25(20) the annual reports of certain departments and agencies stand referred to committees for examination and assessment. Each committee is required to:

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

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

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

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

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

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

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

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

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Allocated portfolios

1.3 The Senate allocated departments and agencies to committees on 29 September 2010.1 In accordance with that resolution , the committee has responsibility for the oversight of the following:

" Parliament; 2

" Prime Minister and Cabinet portfolio (including the Department of Regional Australia, Regional Development and Local Government); and

" Finance and Deregulation portfolio.

1.4 There have been some changes to the departments and agencies within the committee's allocated portfolios since the conunittee's last report on annual reports . As noted in the committee's recent Budget estimates report , the Commonwealth National Disaster Recovery Taskforce was established within the Department of Regional Australia , Regional Development and Local Government (DRARDLG) following the natural disasters in Queensland and Victoria in late 2010-early 2011.3

1.5 Within the Finance and Deregulation portfolio, the Commonwealth Superannuation Corporation (CSC) was established. The Parliament passed legislation to consolidate the Australian Reward Investment Alliance (ARIA) and the Military Tmstee Boards from 1 July 2011 into the CSC . This was to improve the Government's superannuation governance arrangements and to improve benefits for members. In addition, ComSuper was established as a statutory agency under the Public Service Act 1999, meaning the role of the Commissioner for Superannuation no longer exists and the agency is now headed by a Chief Executive Officer. These changes will be

examined by the conunittee through the respective annual reports when they are provided to the Parliament.

Method of assessment

1.6 Annual reports provide one of the key mechanisms, together with the Estimates process, for scmtiny of the operations of Government. As stated in the Requirements for Annual Reports for D epartments, Executive Agencies and FMA Act Bodies 'the primary purpose of annual reports of departments is accountability, in particular to the parliament'. 4

Journals of the Senate, 29 September 2010, p. 88.

2 As a matter of comity between the Houses, neither House inquir es into the operations of the other Hou se. For this reason, neither the annual report of, nor the proposed expenditure for, the Departm ent of the House ofRepresentatives is referred to a Senate Committee for review.

3 For more information please see Senate Finance and Public Administration Legislation Comm ittee, Report on Budget estimates 2011-12, pp 1-2.

4 Department of the Prime Minister and C abinet, Requirem ents for Annual Reports for departm ents, executive agencies and FMA A ct bodies, June 2010. p. 3.

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1. 7 Senate Standing Order 25(20) requires that the committee examine reports referred to it to determine whether they are timely and 'apparently satisfactory'. The committee must consider whether the reports comply with the relevant legislation and guidelines for the preparation of annual reports in forming its assessment. The principal legislation which apply to departments, statutory agencies and authorities, and Commonwealth companies are:

" Public Service Act 1999;

" Parliamentwy Service Act 1999;

" Financial Management and Accountability Act 1997 (FMA Act); and

" Commonwealth Authorities and Companies Act 1997 (CAC Act).

1.8 Statutory authorities report under their respective enabling legislation. For example, the Australian Electoral Commission reports under section 17 of the Commonwealth Electoral Act 1918.

1.9 The committee also assesses whether reports comply with the Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies (the PM&C requirements), issued by the Department of the Prime Minister and Cabinet with the approval of the Joint Conm1ittee of Public Accounts and Audit under

subsections 63(2) and 70(2) of the Public Service Act 1999. This is the authoritative source outlining the requirements for preparing and presenting annual reports for bodies prescribed under the FMA Act. 5

1.10 Commonwealth authorities and companies reporting under the CAC Act are required to comply with the Commonwealth Authorities and Companies (Report of Op erations) Orders 2008.6

1.11 The Finance Minister has a role in the oversight of Commonwealth authorities that are also classified as a government business enterprise (GBE) as set out in the CAC Act. The annual reports of GBEs must provide an assessment of the entity's financial condition, dividends and community service obligations over the financial year.

1.12 The committee determines whether the report of an agency satisfactorily m eets reporting requirements by assessing against the PM&C requirements , in particular, the checklist at Attachment F in the requirements; its respective enabling legislation ; and where necessary, the Cmporations Act 2001.

7

5 These guidelines may be found at: www.pmc.!!ov .auh u ide I ines/docs/annual report requ irements.pdf.

6 These orders are available at the following link: http://ww\v .comlaw.gov.au/D etails/F2008L02092

7 Co rporati ons Act 2001. chapter 2M.

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Reports examined

I .13 During the period of I November 20 I 0 to 30 April 20 11, seven annual reports were tabled in the Senate or presented 'out of session' to the President of the Senate, and refened the committee for examination. The reports are categorised as follows:

Statutmy agencies

" Australian Electoral Commission-Annual Report 2009-1 0-pursuant to section 17 of the Commomv ealth Electoral Act 191 8;

" Australian Public Service Commissioner Report for 2009-10, incorporating the annual report of the Merit Protection Commissioner-pursuant to section 44 of the Public Service Act 1999;

" Australian Sports Anti-Doping Authority-Annual Report 2009-10-pursuant to subsection 74(1) of the Australian Sports Anti-Doping Authority Act 2006;

" Commonwealth Ombudsman-Annual Report 2009-1 0- pursuant to subsection 19(4) of the Ombudsman Act 1976; and

" National Capital Authority-Annual Report 2009-1 0-pursuant to section 50 of the ACT (Planning and Land Managem ent) Act 1988.

Commonwealth companies

" ASC Pty Ltd- Annual Report 2009-1 0- pursuant to section 9 of the Commom vealth Authorities and Companies Act 1997.

Commonwealth authorities

" Albury-Wodonga Development Corporation-Annual Report 2009-10-pursuant to subsection 34C(3) of the Acts fnte1pretatio n Act 1901 .

Reports not examined

1.14 The committee is not obliged to report on Acts, statements of corporate intent , surveys, corporate plans or enata. The following documents were refened to the committee but not examined:

" ASC Pty Ltd-Statement of corporate intent 20 I 0-13-pursuant to section 9 of the Commonw ealth Authorities and Companies Act 1997;

" Australian Public Service Conunissioner - State of the Service Report 2009-1 0- pursuant to section 44 of the Public Service Act 1999;

" Department of Finance and Deregulation-Consolidated financial statements for the year ended 30 June 201 0-pursuant to sections 55 and 56 of the Financial Manag ement and Accountability Act 1997 ;

" Department of Finance and Deregulation - Issues from the advances under the annual appropriations Acts-report for 2009-1 0;

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" Freedom of Information A ct 1982- pursuant to section 93 of the Freedom of Information Act 1982;

" M embers of Parliament (Staff) Act 1984-Annual Report 2009-1 0- pursuant to Part IV of the M embers of Parliament (Staff) Act 1984;

" Department of Finance and Deregulation-Campaign advertising by Australian government departments and agencies-Report for the period 1 July to 31 December 201 0; and

" Department of Finance and Deregulation-Review of parliamentary entitlements-Committee report-April 2010.

Reports held over

1.15 The following reports-relating to the 2009- 10 financial year-were tabled in the Senate after 30 April 2011 and will therefore be examined in the committee's next report on annual reports , due to be presented to the Senate in early 20 12:

" Australian Industry Development Corporation - Special purpose financial report for 2010 [final report] (tabled 11 May 2011);

" Australian River Co. Limited and its consolidated entities - Financial report for the year ended 30 November 2010-Annual report 2010 (tabled 11 May 2011); and

" Australian Political Exchange Council-Annual reports 2007-08, 2008-09 and 2009-10 (tabled 14 June 2011 ).

Non-reporting bodies

1.16 Standing Order 25(20)(h) requires that the committee inquire into, and report on, any bodies which do not present annual reports to the Senate but should present such reports .

1.17 The cornn1ittee continues to approach this in two ways. First , the cornn1ittee examines the Administrative Arrangements Order for the list of legislation administered by portfolio ministers and consequently , departments and agencies. Second, the cornn1ittee consults the Department of Finance and Deregulation's listing of Australian Government Bodies. The list identifies the agencies that are required to report and the Acts under which they report. 8

1.18 Based on the above checks, the committee consider s it has received all reports that it is required to receive.

8 This list ma y be found at: http://www .finance.gov.au/publications/flipchart/index.html (accessed 4 Au gust 2011).

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Timeliness

1.19 All annual reports are required to be tabled in Parliament by 31 October each year unless another date is specified in an agency's legislation , charter and/or terms of reference . The PM&C requirements state that 'it remains the Government's policy that all annual reports should be tabled by 31 October'.

9

The committee continues to

encourage FMA Act bodies to follow this policy.

1.20 The Australian Public Service Commission's (APSC) annual report was tabled on 1 November 2010, only one day later than specified in the PM&C requirements . As stated above, FMA Act agencies are required to table a report by 31 October following the end of the financial year. The committee notes that the report was provided to the Minister with adequate time to meet this deadline and encourages portfolio Ministers to adhere to the 31 October tabling date.

1.21 The Australian Electoral Commission (AEC) is required by its own legislation to provide an annual report as soon as practicable after 30 June each year to the Minister , and the Minister is then required to present the report to the Parliament within 15 sitting days after receiving the report. 10 The committee noted that the AEC annual report was not provided to the Minister until 18 November 201 0 almost four months after the end of the financial year. Furthermore, the Minister provided the AEC annual report to the Parliament on 9 February 2011, more than 15 sitting days after receipt. There does not appear to be any documentation to suggest that the AEC or the responsible Minister requested an extension to report, therefore it is in the committee's view that the report was provided to the Parliament late.

1.22 Commonwealth companies reporting under the CAC Act are required to provide an annual repm1 to the responsible Minister four months after the end of the company's financial year. 11

It appears all annual reports submitted by Commonwealth companies in the committee's portfolio areas fulfilled this requirement , including the reports that were received after 30 April 2011. Ministers are required to table annual reports of companies as soon as practicable . All Commonwealth companies' reports examined by the committee, were tabled within 15 sitting days of receipt by the responsible Minister as determined by the Acts Interpretation Act 1901.

12

1.23 Cornn1onwealth authorities are required to report to the responsible Minister by the 151h day of the fourth month after the end of the financial year, which for authorities reporting on a standard fmancial year basis would be 15 October. 13

All

9 Department of the Prime Minister and Cabinet, Requirements for Annual Reports for departments, executive agencies and FMA Act bodies, June 2010. p. 2.

10 Commonwealth Electoral Act 1918, s. 17(1) and (4).

II Commonwealth AuthorWes and Companies Act 1999, s. 36. 12 Acts Jnte1preta tion Act 1901, s. 34C(3 ). See also Government Response to Senate Standing Committee on Finance and Public Administration Annual Reports (No. 1 of2009), p. 3.

13 Commonwealth Authorities and Companies Act 1999, s. 9.

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Commonwealth authorities appear to have provided annual reports to the respective Ministers by this date.

1.24 For each report referred to it, the corm11ittee recorded the following dates:

" submitted to minister ;

" received by the minister;

" tabled in the Senate or presented to the President or a temporary chair of Committees; and

" tabling date in the House of Representatives, where applicable .

Senate debate

1.25 Few annual reports are debated in the Senate, but many remain on the Senate Notice Paper for future consideration. There are several reports on the Notice Paper, however the committee is not aware of any Senate debates relating to the reports examined.

Corrections

1.26 The committee would like to acknowledge two errors in its previous report on annual reports, Annual reports (No. 1 of 2011). In paragraph 1.22, the committee stated that the letter from the Australian Sports Anti-Doping Authority (ASADA) relatin g to the delayed presentation of its annual report was provided to the Senate on

15 November 2010. While the letter had been tabled on this day, it was presented 'out of sitting' on 29 October 2010, within the specified time as required by subsection 34C of the Acts InteTpretation Act 1901. Furthermore, the committee quoted from the letter that 'printing of the report will be completed by the 31 October deadline'. This quote should have read 'printing of the report will not be completed by the 31 October deadline' (emphasis added). This change has been made to the electronic version of the committee's report on the website. 14

Government responses to committee reports on annual reports

1.27 The Government provided a response to the committee's report Annual Reports (No. 1 of 2009) in May this year.

1.28 The committee's first recommendation relating to the responsibility of Ministers tabling annual reports in Parliament as soon as practicable after receipt , was noted by the Government. As stated above, all FMA Act bodies are required to table annual reports by 31 October and the responsible Minister is required to meet this

14 Senate Finance and Public Administration Legislation C ommittee, Annual Reports (No. I of 2011), p. 8. Av ailable at the following link: http://www.a ph.!!ov .au/Senate/committee/fapa ctte/annual/20 11 /report 1 /index .htm (accessed 5 August 2011)

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deadline. For CAC Act bodies and other agencies that report according to their enabling legislation , the Minister is often required to table annual reports as soon as practicable after receipt. The Government response noted that subsection 34C(3) of the Acts Interpretation Act 1901 states that the responsible Minister must table the report in both Houses of Parliament within 15 sitting days of receiving the report. This clarifies the timeline for the provision to the Parliament of annual reports received by the responsible Minister.

1.29 The Government response also supported the committee's recommendation to have all reports include a compliance index. From June 2010, a compliance index was made mandatory for all FMA Act bodies in the PM&C requirements. Further, the Government supported the inclusion of a compliance index as a reporting requirement for Commonwealth authorities and companies and has included the compliance index as a reporting requirement in the draft Commonwealth Authorities (Annual Report of Op erations) Orders 2010 and Commonwealth Companies (Government Reporting Requirements) Orders 2010.15 These orders have been provided for consultation by the Department of Finance and Deregulation and will replace the Commonwealth Authorities and Companies (Report of Operations) Orders 2008.

1.30 The other recommendations in the report related to adherence to the Commonwealth Fraud Control Guidelines and that CAC Act bodies report according to the PM&C requirements. The response stated that FMA Act bodies are already required to adhere to the Commonwealth Fraud Control Guidelines and that the Department of Finance and Deregulation is working on applying a general Commonwealth policy order for CAC Act bodies which would include the Fraud Control Guidelines. In relation to annual reports of CAC Act bodies adhering to the PM&C requirements, the Governn1ent did not support this recommendation and stated that Commonwealth authorities and Commonwealth companies have separate annual reporting requirements which are set out in the Commonw ealth Authoriti es and Companies (Report of Operation Orders) 2008 and C01porations Act 2001 respectively.

1.31 The committee also notes that the draft orders for Commonw ealth authorities and Commonwealth companies include a 'Related entity transactions' requirement. The committee recommended in its second report on annual reports for 2009 that annual reports by CAC Act bodies contain, if applicable, an explanation of the decision making process to pay for services from 'relat ed entity' companies. 16 The committee is pleased that this matter has been included in the draft orders.

15 Con sultation drafts of the O rder available at: http:// www .finance.gov.au/draft-or ders/ca " attachm ent-a.html; http:// www .finance.gov. au/draft-orders/ca-att achm ent-b.html (accessed 5 August 201 1)

16 Senate Finance and Public Administration Legislation Committee, Annual Reports (No. 2 of 2009), September 2009.

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Selected agencies and reports

I.32 The committee has found that one report , the ASC Pty Ltd annual report for 20 I 0 did not include information in accordance with the Freedom of Information Act 1982 and the Commonwealth Electoral Act 1918, but that it did meet its GBE annual reporting requirements. All other reports received during the reporting period

were 'apparently satisfactory'. The committee has selected the reports below for further examination and analysis.

Australian Electoral Commission

1.3 3 The 2009-1 0 annual report by the Australian Electoral Commission provides detailed information on the Commission's performance over the financial year. The report uses the key performance indicators (KPis) from the Portfolio Budget Statements (PBS) of 2009-l 0 to provide the reader with a clear analysis of the AEC's performance. The report uses plain English and is concise, making the report easy to follow and thus accessible for all readers. There is some repetition in the report with several initiatives crossing different outcomes and programs, however, this does allow

the reader to have a thorough understanding of the work of the Commission.

I.34 The AEC report focuses on the lead up to the 20 I 0 federal election and the work carried out by the agency preparing for this event. The performance of the AEC in conducting the election will be discussed in detail in the 20 I 0-11 annual report and the committee looks forward to examining this report.

1.35 The annual report also discussed some of the challenges facing the AEC in 2009-1 0 and into the future. These challenges include the importance of modernising the Electoral Act to keep up with the rapid technological changes taking place and to re-build electoral participation of Australians aged IS-39. In addition, the report raised the issue of keeping the electoral roll up-to-date and the challenges of the Australian population growing faster than the electoral roll is able to be updated. 17 The AEC also stated that one of the most complex issues it faces is carrying out the assessment of the

registration of new party names that are similar to pat1y names already registered at Conunonwealth, State and Territory levels.

1.36 The human resource management section of the report discussed an independent staff satisfaction report from 2009. From the results of this survey, the AEC has developed and launched the Investing In Our People program to provide development opportunities for staff in both their existing and future jobs and to recognise staff achievements. 18 The AEC stated that it has seen an increased retention in the number of staff with the agency.

17 Australian Electoral Commission, Annual Report 2009-10, p. 33.

18 Au strali an Electoral Commi ssion, Amwa/ Report 2009-10, p. 5.

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1.37 The committee commends the AEC for the detailed chapter on 'Providing access for people with disabilities' which discusses the work carried out by the AEC in this area as service provider and as employer.

1.38 Lastly, the report also contains information on complaints lodged with the Australian Human Rights Commission against the AEC. In particular , one complaint related to the services and facilities available to enable persons who are blind or have low vision to vote in federal elections . The AEC stated that new procedures were put in place for the 2010 federal election as an interim measure in response to this complaint and the committee awaits the Commission's next annual report to examine the outcome of these new procedures.19

Australian Public Service Commissioner

1.39 The report by the Australian Public Service Commission (APSC) is a well presented report, and provides good detail and direction for the reader. The guide to the report provides the reader with an overview and short description of each section within the report. This is helpful not only for the committee's examination of the report, but also for members of the public seeking information on the work of the APSC. Further, the key performance indicators from the PBS are used well to summarise and review the performance over the year. The report also includes financial performance summaries by outcome which ensures transparency of spending of public funds by the APSC .

1.40 The report discusses the range of preliminary work that the APSC began in 2009-1 0 to supp011 the implementation of the reforms that came out of the Ahead of the Game: Blueprint for the Reform of the Australian Governm ent Reform. The Conm1ission has taken on a whole of the Australian Public Service (APS) leadership and change-management role and established a project management office to support this new work. The annual report states that while the APSC has retained its current outcome, it has developed a new vision 'To lead and shape a unified , high-performing APS'.2o

1.41 In addition, the Commission stated a further change in 2009-1 0 was the transfer of the responsibility of the Government's policies for agreement-making, classification structures , APS pay and employment conditions, work-level standards and workplace relations from the Department of Education, Employment and Workplace Relations.

1.42 The APSC's report, as stated above, provided a vast amount of detailed infom1ation on the work carried out over the 2009-10 financial year. This infom1ation, however, is presented in sections based on the internal structure of the

19 Australian Electoral Commi ssion, Annual R eport 2009-10, pp 116-17.

20 Australian Public Service Commissioner, Annual Report 2009-10, p. 7.

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APSC . This approach does mean that information relating to the PM&C requirements is lost across chapters and it is hard for the reader to compare with similar reports.

1.43 The committee notes that many of the FMA Act bodies reporting on the use of consultancies have provided the information on the web rather than in the report. This approach is acceptable , however, no website address was provided in the APSC report and the committee encourages the APSC to provide the weblink to make the information more accessible to the reader. 21

Office of the Commonwealth Ombudsman

1.44 The annual report by the Office of the Commonwealth Ombudsman clearly sets out its aims, that is 'to meet the parliamentary reporting requirements and to provide information to the community about the diverse nature of the complaints handled by our office'. 22 This is achieved as the report includes information on the work of the Ombudsman that is easily accessible for the general public as well as detailed information as set out by the PM&C requirements.

1.45 Over the 2009-1 0 financial year, the Office went through a period of transition with the Commonwealth Ombudsman , Mr Timothy Pilgrim and one of the Deputy Commonwealth Ombudsmen, Dr Vivienne Thom , moving on to other Commonwealth agencies. The committee has had the opportunity to inquire into the operations of Office under the new Commonwealth Ombudsman, Mr Allan Asher, during the 201 0- 11 estimates process.

1.46 Similar to the AEC, the Ombudsman's office has introduced new human resource management processes following issues highlighted by a staff survey in 2009. The processes include the introduction of an internal mobility register to allow staff to move and to improve career development opportunities , the development of an online training system, updated core module training and the Office has moved to new premises so all ACT staff are now on the same office building level.

1.4 7 The Ombudsman's report uses case studies effectively to explain some of the work carried out by the Office. These provide the reader with information on the various complaints received and the outcomes achieved with government agencies from the complaints. The case studies enable the reader to have a greater understandin g of the intricacies of the Ombud sman 's work and of the ways in which the Office can provide assistance to the general public in their interaction with Commonwealth agencies.

1.48 The committee noted the Ombud sman's comments on the growing number of cross-agency issues arising from cross-agency programs. The annual report states that

21 APS C consultant details are available at: http://www.a psc.!lov.a u/annualreport/091 0/tinancialconsultants.html (accesse d 27 July 2011).

22 Comm onw ealth Ombud sm an, Annual Report 2009-10, p. iv.

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this has made the investigative process much more complicated. The committee will continue to monitor this situation through future annual reports of the Ombudsman and other government agencies.

Australian Sports Anti-Doping Authority

1.49 The A SAD A 2009-10 annual report details the operations of the Authority in its fifth year of operation. This report provides a good balance of narrative discussion on ASADA's work throughout the year and detailed information on its performance against the 2009-10 key performance indicators in the PBS.

1.50 During the financial year, ASADA developed a new education model and curriculum framework for the national anti-doping education program. This new model was used to provide the foundations for the program, Pure Performance Online. This online program will provide information on anti-doping education to athletes, support personnel and organisations .

1.51 From 1 January 2010, amendments to the ASADA Act came into effect with the agency head changing from a Chair to a Chief Executive Officer (CEO). Ms Aurora Andmska conm1enced as CEO on 10 May 2010. Further, the Anti-Doping Rule Violation Panel was established at the same time. The Panel is responsible for making findings on possible anti-doping mle violations and maintaining the register of findings.

1.52 The rep011 stated that ASADA is aiming for a greater emphasis on digital marketing and conmmnications to increase awareness of its role and information on prohibited substances in sport. The website was redeveloped and a new online tool was created , Ch eck Your Substance, which saw a 3024 per cent increase in the number of page views of the agency's website.

1.53 In relation to the Commonwealth Disability Strategy, ASADA stated that it was in the process of developing its 2010-14 disability plan. While the committee acknowledges that the PM&C requirements for 2010-11 annual reports will require information on the National Disability Strategy rather than the Commonwealth Strategy , ASADA is still encouraged to provide more information on its disability plan than to only state it is in development.

National Capital Authority

1.54 This is the first opportunity that the committee has had to examine the annual report of the National Capital Authority (NCA) , with DRARDLG now under the conm1ittee's po11folio coverage. The NCA Chairman's report states that 'the new Authority has had to grapple with some long-standing , indeed endemic, problems'Y The future of the Authority has come under question recently and the annual report

23 National Capital Authority, Annual Report 2009-10. p. vii.

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reflects some of these concerns relating to its role in the management and future development of the national capital.

1.55 The annual report states that a long-term aim of the NCA is to complete a fifty-year 'fotward look', once the government has decided on the future of the NCA. This forecast will canvass the likely size, needs and infrastructure of the national capital, and will involve a complete revision of the National Capital Plan.

1.56 The review of performance states that the target number of visitors to the National Capital Exhibition was 235 000, however the actual number of visitors to the exhibition in 2009-10 was only 175 679. At the same time, the target number of visitors for the online educational material was 3 500 and the NCA website had 7 145 visitors in 2009-l 0.

1.57 The annual report by the NCA focuses more on the requirements of the NCA's enabling legislation rather than its outcome structure. The committee encourages the NCA in its next annual report to focus on its performance in relation to its outcome and program structures for easy comparison to spending and agency objectives as outlined in the PBS. The committee notes that the NCA provided comprehensive

infonnation on the projects and programs that were carried out during the year, however, this is more of an explanatory discussion than in-depth analysis of performance.

AlbuiJ'-Wodonga Development C01poration

1.58 The annual report of the Albury-Wodonga Development Corporation (A WDC) states that the requirements of its charter are to prepare the organisation for winding-up. In accordance with the charter , the A WDC stated that it achieved the disposal of further assets in 2009-10, including one-third of its remammg undeveloped land bank.

1.59 While the Corporation is attempting to dispose of all assets , the report still included all requirements as set out in the Commonw ealth Authoriti es and Companies (Report of Op erations) Orders 2008. The report also includes a short compliance index at the end of the report which is helpful for the reader and provides an easy reference point. Further, it ensures that the corporation has met all the requirements as set out in the Report of Operations Orders.

1.60 The con1mittee commends the Albury-Wodonga Development Corporation on its annual report.

Senator Helen Polley Chair

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Appendix 1

Dates relating to the timeliness of presentation and debate in the Senate

# In the case where a report is examined in this report and has been tabled in the Senate after 31 April 2011, both the House of Representatives [H] and the Senate [S] tabling dates have been included. Note: there is no provision in the House of Representatives Standing and Sessional Orders for annual reports to be tabled out of session.

Reporting Body Sent to Minister Received by Tabled in the Senate Consideration

Minister or presented out of in the Senate-sitting(*) debate

PRIME MINISTER AND CABINET PORTFOLIO

Australian Public Service 5 October 20 I 0 5 October 20 I 0 I November 2010* -

Commissioner-Report for 2009-10

Australian Public Service 8 November 2010 8 November 2010 9 February 2011 -

Commissioner-State of the Service Report for 2009-1 0

Australian Sports Anti-Doping 20 October 20 I 0 20 October 2010 24 November 20 I 0 -

Authority-Report for 2009-10

Commonwealth Ombudsman- 26 October 20 I 0 26 October 20 I 0 I November 20 10* -

Report for 2009-1 0

Freedom of Information Act 27 October 2010 27 October 20 I 0 20 December 2010* -

/982-Report for 2009-1 0

National Capital Authority - 19 October 20 I 0 25 October 20 I 0 16 Novemb er 20 I 0 -

Report for 2009-1 0

FINANCE AND DEREGULATION PORTFOLIO

Albury Wodonga Development 5 October 20 I 0 7 October 20 I 0 17 November 20 I 0 -

Corporal ion-Report for 2009-1 0

Australian Electoral 18 November 2010 19 November 20 I 0 9 February 20 II -

Comm ission-Repor1 for 2009-10

ASC Pty Ltd-Report for 30 September 2010 I October 20 I 0 23 November 20 I 0 -

2009-10

ASC Pty Ltd-Statement of 19 .lui\' 2010 23.Ju!Y2010 23 No\'cm her 20 1 0 -

Corporate Intent-Statement of Corporate Intent 2009-2012

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Reporting Body Sent to Minister Received by Tabled in the Senate Consideration

Minister or presented out of in the Senate-sitting(*) debate

Department of Finance and I 2 October 20 I 0 I 2 October 20 I 0 17 November 20 I 0 24 March 2011 Deregulation -Issues from the Advances Under the Annual Appropriations Act-Report for 2009-10

/Ill embers of Parliament (Staff) 28 October 20 I 0 28 October 2010 23 Novembe r 20 I 0* -Act/984-Report for 2009-10

Department of Finance and I March 201 I I March2011 3 I March 20 I I * -

Deregulation-Campaign advertising by Australian government departments and agencies- Report for the period

I Julyto31 December2010

Department of Finance and 19 November 2010 19 November 20 I 0 I 4 December 20 I 0* -Dcregulat ion-Con so I ida!l:d tinancial statements for the year ended 30 June 20 I 0

Department of Finance and 9 April 2010 9 April 2010 H : 24 March 2011 -

Deregulation-Re, ∑ icw of parliamentary emit lcments- S: I 0 May 20 I I

Committee report-Apri I 20 I 0

A ustralian Industry 2 March 2011 3 March 201 I II May 20 11 -

Development Corporation-Special purpose tinancia l report for 2010

Au stralian River Co . Limited 8 March 2011 8 March 2011 II May 201 1 -

and its consolidated entities-Financial report for the year ended 30 No \' ember 20 I 0-A nnual report 2010

A ustralian Political Exchange 10 Ma y 201 1 10 Ma y 2011 14 June 2011 -

Council-Annual Rcp011 s 2007-08. 2008-09 and 2009-1 0

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The Senate

Foreign Affairs, Defence and Trade Legislation Con1mittee

Annual reports (No.2 of2011)

A ugust 2011

129

@ Commonwealth of Au stralia

ISBN 978-1-74229-508-4

This document is produced by the Senate Co mmittee Foreign Affairs. Defence and Trade Secretariat. and printed by the Senate Printing U nit. Parliament H ouse. Ca nbeiTa.

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Members of the Committee

Members

Senator the Hon Ursula Stephens, ALP, NSW (Chair)

Senator Alan Eggleston, LP, WA (Deputy Chair) Senator Mark Bishop, ALP, W A

Senator David Fawcett, LP, SA

Senator Scott Ludlam, GRN, W A

Senator Anne McEwen, ALP, SA

Secretariat

Dr Kathleen D ermody, Committee Secretary Ms Alpana Modi, Research Officer

Parliament H ouse Canberra ACT 2600 Phone: (02) 6277 3535 Fax: (02) 6277 5818 e-mail: fadt.sen (awph .£!:ov.au http:// www.aph.gov.au/senate _ fadt

III

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132

Table of Contents

Members of the Committee .............................................................................. iii

Preface .................................................................................................................. 1

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

Role of annual reports ...... ......... ....... .... ......... ......... ............ ..... ......... ...... ................ 1

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

Annual reports considered ........ ............ ......... ....... .... ..... ....... ........ ... ........ ......... ..... . 3

General comments on the annual reports ....... ... ........... ...... .......... ... ...... ............. .... 3

Chapter 1 ............................................................................................................. 5

Annual reports of departments ............................................................................... 5

Department of Veterans' Affairs-Data-matching program-Report on progress 2008-2010 ... ............. ....... ... ...... ....... ............ ......... ..... ........... ........ ........... ...... .......... 5

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

Annual reports of statutory and non-statutory authorities and government companies .................................................................................. ................................ 7

Army Amenities Fund (AAF) Company ............ ....... ... ......... ...................... ...... ..... 7

Au stralian Strategic Policy Institute (ASPI) report for 2009-2010 ....... .... ... ..... ..... 8

Director of Military Prosecutions ....................... .... ....... ............. .... ......... ........... .... 9

Defence Hou sing Au stralia ..... ... ..................... ......... .......... .......... .......... ........ .... ... 13

Defence Force Remuneration Tribunal ... ...... .... ............ ..... ....... .... ......... ....... ... .... 15

Judge Adv ocate General ........... ............... .... ............ ....... .... ........ ........... ............ ... 16

Royal Australi an Air Force Welfare R ecreational Compan y (RWRC ) ..... ... ....... I 8

Non-Statutory authorities and government companies ......... ............................. 19

ASC Pty Ltd- Annual Report 20 I 0 ....... ..... ... ..... .... ... ... .............. ..... .... .... ............ 19

Appendix 1 ......................................................................................................... 25

Annual reports referred to the committee .......................................... ................. 25

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Preface

Terms of reference

I. 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. The standing order states:

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

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

b) Consider in more detail , and rep011 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 conu11ittee so detem1ines, 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 Ap1il 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.

Role of annual reports

4. Annual reports place a great deal of information about govemment departments and agencies on the public record. Accordingly, the tabling of aruma] reports

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2 Preface

continues to be an important element of accountability to Parliament. The infom1ation 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 infonn the Parliament (through the responsible Minister), other stakeholders , educational and research institution s, the media and the general public about the perfotmance of departments in

relation to services provided. Annual reports are a key reference document and a document for intemal management. They form part of the histori cal record.

Annual reports and Portfolio Budget Statements (PBSs) are the principal f01mal accountability mechanisms between govemment and departments and from departments through (or on behalf of) government to the Parliament.

1

Assessment of annual reports

5. The annual repot1s are examined by the committee to determine whether they are timely and 'apparently satisfactory' .2 The committee considers whether the reports comply with the relevant requirements for the preparation of annual reports of departments and authorities.

6. 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, executiv e agencies and FMA Act bodies, Department of Prime Minister and Cabinet, 23 June 201 0;

" for Commonwealth authorities and companies: the Comm onv-.-ealth A uthoriti es and Companies Act 1997; 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 Conm1ittee on Finance and Government Operations on Non-statutory Bodies. Senate Han sard, 8 Decemb er 1987, vol s 124, pp. 2643-45 (requirements were modified in 1987).

Requirelllel/lsfor annual reporrsfor Jepart/1/ enrs. executii "C agencies and FMA Acr bodies. Dep artment of Prime Min ister and Cabinet. 23 June 2010. p. 2. ,,.,,"'" .dpm c. !!O \' .aLL !!U ide] i ncs i nde\ .cf m

Refer to Appendix 1 for a t able of the reports referred to the com m ittee for scrutiny.

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Preface 3

Annual reports considered

7. The annual reports of the following organisations have been examined by the committee:

Defence por(folio

Am1y Amenities Fund Company

ASC Pty Ltd

Australian Strategic Policy Institute Limjted

Director of Military Prosecutions

Defence Force Remuneration Tribunal

Defence Housing Australia

Judge Advocate General

Royal Australian Air Force Recreational Company

Veterans' Affairs , Department of

General comments on the annual reports

Timeliness in tabling reports

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

9. In accordance with the Requirements for Annual Reports published in June 201 0, agencies are required to present:

A copy of the annual report. .. to each Hou se of Parliament on or before 31 October in the year in which the report is given. If Senate Estimates is scheduled to occur prior to 31 October, it is best practice for annual report s to be tabled prior to those h e arin g s. ~

10. A table detailing the dates relating to the timeliness of presentation IS at Appendix 1.

Comments made in the Senate

11 . 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 .

Requirem ents for annual reports for dcpartmcm s. e.recutii 'C agencies and FM A Act bodies. Department of Prime Minister and C abinet. 23 June 2010. Part I. section 4.

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4 Preface

Matters of significance

12. In accordance with Senate Standing Order 25, the committee is to note any significant matters relating to the operations and performance of the bodies presenting their annual report. The committee found no matters of significance relating to the operations and performance of the bodies presenting their report.

Bodies not presenting annual reports to the Senate

13. The committee is required to report to the Senate each year on whether there are any bodies that do not present annual reports to the Senate and which should present such reports. The committee is satisfied that there are no bodies, within these portfolios, which do not meet their reporting requirements to the Senate.

Standard of reports

14. The committee found all reports to be generally of a high standard. They effectively described the function, activities and fmancial positions of the various departments and agencies. The committee therefore finds all of the annual reports to be 'apparently satisfactory'.

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Chapter 1

Annual reports of departments

Department of Veterans' Affairs-Data-matching program-Report on progress 2008-2010

1.1 The Department of Veterans' Affairs, data matching program-report on progress 2008-20 I 0 was tabled in the Senate on 16 November 2010. This is the nineteenth report on progress of the Data Matching Program presented to Parliament by the Department ofVeterans' Affairs.

1.2 In the 1990-91 Budget, the then Government announced new measures to detect incorrect payment in the income support system. 1 This involved a program of computerised matching of identity and income data held by a limited number of government agencies. 2 The legal authority for data matching is contained in the Data Matching Program (Assistance and Tax) Act 1990. The Data Matching Program plays an important role in ensuring the integrity of payments made to the veteran conmmnity. The annual report focuses on the operation of the program within the

Department of Veterans' Affairs from 2008-20 1 0.

Prosecution Statistics

1 .3 The Department noted that in the year 2009-20 1 0, ten cases were referred to the Compliance Section, one case was referred to the Conm1onwealth Director of Public Prosecutions (CDPP) and zero cases were successful1y prosecuted. The Department also provided the following prosecution statistics for the reportin g period:

(a) one case was dismissed by the CDPP due to 'insuffic ient evidence' or 'not in the public interest' ;

(b) six cases are still under investigation by the Compliance Section; and

(c) six cases were finalised by the Compliance Section without CDPP referral.

1.4 The report noted that:

The Department's role in the prosecution process is to investigate cases where it appears an offence may have been committed and to forward these cases, if warranted, to the Commonwea lth Director of Public Prosecutions (CDPP) for a decision on whether prosecution action should proceed ... For the last three years any suspected fraud cases detected were refen∑ ed to th e

Department of Veterans' Affairs- Data matching program, R eport on progress 2008-10. p. 2.

Department of Veterans' Affairs- Data matching program. Report on progress 2008-10. p. 2.

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6 Chapter 1 Annual reports of departments

Compliance Section of the Business Integrity and Legal Services Group for an initial case assessment, prioritisation , and further action if appropriate . 3

1.5 The committee finds that the Department has submitted a report on progress that meets the reporting requirements for a Commonwealth department.

De partment of Ve terans' Affairs- D ata m atching program. R eport on progress 2008-10. p. 10.

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Chapter 2

Annual reports of statutory and non-statutory authorities and government companies

Army Amenities Fund (AAF) Company

2.1 The AAF Company Report for 2009-20 1 0 was tabled in the Senate on 14 June 2011.

2.2 The AAF Company was incorporated on 17 July 1987 to administer the assets of the Army Central Amenities Fund and is trustee of the Army Amenities Fund and Messes Trust Fund. The Messes Trust Fund provides fmancial assistance to newly formed Messes and existing Messes for worthwhile projects that benefit the wider mess membership.

Review of Operations

2.3 The Directors reported that the AAF's operations, during the reporting period, were in accordance with the AAF Company statutory objects and comprised the provision of discounted recreational accommodation for Army members, and assistance in the provision of recreational facilities and services to Army members.

1

Audit Committee

2.4 The AAF Company established an audit committee in accordance with the Commonwealth Authorities and Companies Act 1997 (CAC Act). The conm1ittee is comprised of three members in accordance with regulations prescribing the minimum composition of audit committees.

2

Financial Statements

2.5 The Australian National Audit Office (ANAO) perfonned an independent audit report stating:

The financial report of AAF is in accordance with the Corporations Act 200 I, including ( i) giving a true and fair view of AAF Company's financial position as at 30 June 20 I 0 and of its perfmmance for the year ended on that date; and (ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretation s) and the Corporations Regulations 200 I.

3

2.6 Further:

AAF Company. Annual Rep ort 2009-20 10. p. 6.

AAF Company. Annual Report 2009-20 10, p. 7.

AAF Compan y. Annual Report 2009-2010. p. 7.

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8 Chapter 2 Annual reports of statutory and non-statutory authorities and government companies

The financial statements of the Army Amenities Fund have (a) been prepared in accordance with the Finance Minister's Orders made under the Commonwealth Authorities and Companies Act 1997, including the Australian Accounting Standards; and (b) give a true and fair view of the matters required by the Finance Minister's Orders including the Army Amenities Fund's financial position as at 30 June 2010 and its financial performance and cash flows for the year then ended. 4

Messes Trust Fund

2.7 Notably the Messes Trust Fund is exempt from all forms of taxation except the Goods and Services Tax (GST). The interest rate increased from 4.50% in 2009 to 4.63% in 2010 as a result of changes in market interest rates. It was reported that the Messes Trust Fund does not have any material credit risk exposure to any single

debtor or trust of debtors. 5

2.8 In conclusion, the committee finds that this report complies adequately with all reporting requirements of the CAC.

Australian Strategic Policy Institute (ASPI) report for 2009-2010

2.9 The Australian Strategic Policy Institute (ASPI) report for 2009-2010 was tabled in the Senate on 16 November 2010. ASPI's work covers all aspects of national decision-making which bear on Australia's security interests and whole-of " government policy responses, with an emphasis on political , economic and military

0 6

secunty.

2.10 ASPI's constitution establishes four broad purposes for the Institute , which are:

(a) to encourage and inform public debate and understanding of Australia's strategic and defence policy choices;

(b) to provide an alternative source of policy ideas to government;

(c) to nurture expertise in defence and strategic policy; and

(d) to promote international understanding of Australia's strategic and defence policy perspectives .

Review of Operations

2.11 The Directors' Report noted that a review of operations of ASPI across the financial year indicates that changes in the sales of goods and services led to a 20.3% decrease in own-source revenue, largely due to the deferral of some events and publication releases. The decrease in own-source revenue was offset by an 11.4%

4 AAF C ompan y. Annu al Report 2009-2010. p. 20.

5 AAF Comp any. Annua l Report2009-2010. p. 15.

6 A ustralian Strategic Policy Institute. Ann ual Report 2009-2010. p. 7.

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Chapter 2 Annual reports of statutory and non-statutory authorities and government compa nies 9

decrease in supplier expenses, resulting partly from cost savings measures in the areas of administration and travel. 7

2.12 AS PI's major source of funding is provided by the Commonwealth through the Department of Defence. A seven year Funding Agreement was established m August 2001 at the commencement of its operations. 8

Financial Statements

2.13 The Australian National Audit Office (ANAO) performed an independent auditor's report noting that the fmancial report of ASPI was in accordance with the Corporations Act 2001, including (i) giving a true and fair view of the ASPI financial position as at 30 June 2010 and of its performance for the year ended on that date; (ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001.9

2.14 The conm1ittee finds that this report complies adequately with all reporting requirements of the CAC.

Director of Military Prosecutions

2.15 The Director of Military Prosecutions Report for 2010 was tabled in the Senate on 14 June 2011. This is the fourth report presented to Parliament by Brigadier L.A. McDade.

2.16 The Office of the Director of Military Prosecutions (DMP) is a statutory body created under the Defence Force Discipline Act 1982 (DFDA). The position of the DMP was created by section 1880 of the DFDA and commenced on 12 June 2006.10 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 m ember of the reserves rendering full-time service , holding a rank not lower than the rank of Commodore, Brigadier or Air Commodore. 11

2.17 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 ma gistrate , 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;

7 Australian Strat egic Policy Institute. An nual Report 2009-20 I 0, p. 45. 8 Australian Strategic Policy Institute. An nual Report 2009-2010, p. 20. 9 A ustralian Strategic Policy Institu te. Ann ual Report 2009-2010, p. 49. I 0 Director of Mi lit ary Prosecutions. Annu al Report 2010. p. I.

II Director of M ilitary Prosecutions. Annual Report 2007. p. I.

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10 Chapter 2 Annual reports of statutory and non-statutory authorities and government companies

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 m proceedings before the Defence Force Discipline Appeal Tribunal;

e) to do anything incidental or conducive to the performance of any of the d. f . 17 prece mg unctwns. -2.18 The primary function of the DMP is to carry on prosecutions for services offences in proceedings before court martial or Defence Force magistrates.

Personnel

2.19 Brigadier McDade reported that at the commencement of the reporting period the DMP established 14 positions for prosecutors. 13

External Associations: Appointment of the Office of the Director of Mi/itmy Prosecutions (ODMP)

2.20 Brigadier McDade approved the appointment of an Office of the Director of Military Prosecutions (ODMP) representative to the Australian Association of Crown Prosecutors (AACP) committee. 14

Internal Liaison: amendments to the DFDA

2.21 Brigadier McDade noted that the Military Justice Coordination Conunittee (MJCC) provided an effective forum to initiate amendments to the DFDA. 15 The amendments proposed by B1igadier McDade include:

(a) the right of the prosecution to appeal on sentence;

(b) the amendment of section 70 to allow for the consideration by tribunals of victim impact statements;

(c) the creation of an aggravated assault offence and

(d) the implementation of global punislm1ents.

Caseload

2.22 Brigadier McDade noted that from 1 January 20 I 0-31 December 2010, 31 Defence Force ma gistrat e (DFM) , 32 RCM and 23 General Court Martial (GCM)

12 Defence Force Discipline . .Jet 1 98:!. ~..:c t ill n 1 RS G A( 1 ).

13 Director of Militar y P ro~ c c uti o n s . A nnual R eport 20 I 0. p. 3.

14 Director of Militar y Pr o~ ccuti o n s . t\nnual R eport ~ti l 0. p. 5. 15 Director of Military Pr o~c cuti o n ~ . \nnual Rq1flr" 2010. p. 6.

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Chapter 2 Annual reports of statutory and non-statut ory authorities and government companies II

hearings were held. She also provided the following caseload data for the reporting period:

(a) 58 matters were not proceeded;

(b) 65 matters were referred back for summary disposal; and

(c) 3 matters were referred for prosecution.

Sign({ica11t cases

2.23 The Annual Report cited six significant cases heard during the reporting period:

(a) Flynn v Chief of Army [201 OJ DFDAT 3 of 2009: an appeal in relation to the conviction of Private Flynn by GCM on a charge of being intoxicated whilst on watch at an ADF base in Baghdad. The appeal was allowed.

(b) Parker v Chief of Air Force [20 1 OJ DFDAT 1 of 2010: an appeal in relation to a conviction by GCM on a charge of culpable driving and driving under the influence of intoxicating liquor. The conviction on the charge of culpable driving was set aside and an acquittal was substituted. The conviction of driving whilst under the influence of intoxicating

liquor was confirmed.

(c) Watson v Chief of Am1y [2010J DFDAT 2 of2010: Private Watson was convicted by a Defence Force magistrate of using a forged document. Private Watson appealed the conviction . The DFDA T allowed the appeal.

(d) Davis v Chief of A m1 y [20 1 OJ DFDA T 3 of 2010: A n appeal to the DFDA T was heard on 29 November 2010 which was dismissed by the DFDAT on 22 February 2011 .

(e) Green v Chief of Anny [2010J DFDAT 4 of 2010: An appeal to the DFDAT was filed on 12 November 2010 and was due to be heard on 29 April 2011.

(f) Nicholas v the Commonwealth and Another: An appeal to the High Court was filed on 19 August 20 I 0 and was due to be heard on 29 March 2011.

Section 87 DFDA

2.24 An amendment to section 87, which deals with the power to charge m embers of the ADF, is under consideration for a further version of the DFD A.

Civilian ca. 1iualty incident in Afghanistan

2.25 Three m emb ers of the ADF were charged with service offences. The matters have been referred to the R egistrar of Military Justice for trial by general courts martial. The report included the following table of offences:

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12 Chapter 2 Annual report s of statutory and non-statutory authorities and government companies

Class of Offence RAN ARMY RAAF TOTAL

Acts intended to cause injury 18 13 3 34

Sexual assault and related offences 14 5 3 22

Dangerous or negligent 0 5 0 5

endangering persons

Harassment and other offences 0 0 0 0

against person

Theft and related offences 4 6 1 11

Fraud, deception and related 18 26 13 57

offences

Illicit drug offences 0 2 0 2

Property damage and 0 0 0 0

environmental pollution

Traffic and vehicle regulatory 1 1 0 2

offences

Miscellaneous civilian offences 0 4 0 4

Specific military discipline 11 18 6 35

offences

TOTAL 66 80 26 172

The command discipline system

2.26 Brigadier McDade expressed the view that the current command-based system is operating adequately to meet the discipline needs of the Australian Defence Force.

Defence Travel Cards

2.27 During this reporting period the number of credit card fraud matters referred to ODMP continued to decline, representing approximately 5.8% of matters compared with 7.5% in the previous year and 25% of matters two years ago.

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Chapter 2 Annual reports of statutory and non-statutory authorities and government companies

Conclusion

2.28 In conclusion, Brigadier McDade stated that:

The ODMP has experienced a period of consolidation in terms of manning and practice following the reintroduction of the Defence Force magistrate and court martial system. The priority remains to conduct efficient and effective prosecution of matters brought within the jurisdiction, with a focus on timeliness. It remains my view that the command based system currently operating meets the discipline needs of the Australian Defence Force.

16

Defence Housing Australia

13

2.29 The Defence Housing Australia (DHA) report for 2009-20 I 0 was tabled in the Senate on 16 November 2010. DHA was established as a statutory authority in 1988. In 1992, DHA became a Government Business Enterprise.

2.30 The primary function of DHA is to provide housing and related services to members of the Australian Defence Force and their families in accordance with the DefC!nce Housing Australia Act 1988.17

2.31 DHA's major projects include:

(a) Muirhead, Darwin

(b) Voyager Point, Sydney

(c) Gordon Olive Estate, Brisbane

(d) Crace, Canberra

(e) Larrakeyah, Darwin

(f) Dundas, Sydney

(g) Evet1on Park, Brisbane

(h) Pickering Hill, Brisbane

(i) Lyons, Darwin

(j) Weston Creek, Canberra

Relocations events

2.32 Since 2001, DHA has provided relocation services to all ADF members. 18 In

2009-20 I 0, DHA administered more than 36,000 relocation 'events' involving ADF members. The annual report stated that of this total: nearly 11,000 events involved ADF members moving for posting reasons; 7,000 were for ADF members moving

16 Director of Military Prosecutions. Annual Report 20 I 0, p. I 7.

17 Defence Housing Australia. Annual Report 2009-2010. p. 4.

18 Defence Hou sing Au stralia. Annual Report 2009-2010. p. 31.

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14 Chapter 2 Annua l reports of statutory and non-statut ory authoritie s and government compa nies

to/from courses around Australia; and some 5,000 were associated with members changing private rental accommodation. 19

DHA lease agreement

2.33 Revenue generated from the sale and leaseback of property is DHA's primary source of capital. 20 At the end of the reporting period, more than 11 ,000 properties of DHA's property portfolio, were managed on behalf of investors. 21

2.34 In the reporting period, DHA introduced a new edition of its Lease Agreement to improve readability, clarify DHA and lessor responsibilities , separate 'lease' and 'service' components, and maximise consistency with state and territory Residential Tenancy Acts. 22 K ey feature s that the annual report noted are:

(a) a long term lease;

(b) rent payable from the commencement date until the end of the lease; and

(c) no loss of rent when Defence tenant changes

Operating Results and Returns to Shareholders

2.35 DHA's net operating surplus after income tax for 2009-2010 was $87.8 million. 23 The report noted that, DHA fully complies with the Income Tax Assessm ent Act, Commonwealth Fringe Benefits Tax and the G oods and Services Tax I . I . '4 egis at10n.-Statement of Corporate Intent

2.36 In DHA's statement of corporate intent the economic stimulus plan was discussed. The Federal Government provided $245.58 milli on to DHA as part of the N ational Building- Economic Stimulus Plan. DHA expects to complete 829 houses from this funding by March 2011 .

25

2.37 Further , in the statement it was noted that DH A has had a successful year 26

and through the capital program , the portfolio was maintained in line w ith the New H ousing Classification Policy standards. 27

19

20

21

22

24

25 26 27

Defence Housing A ustrali a, Ann ual Report 2009-2010. p. 31. Defence Housing Australia, Annu al Report 2009-2010. p. 57. D efence Housing Australia. Annu al Report 2009-2.0 I 0. p. 57. D efence Housing Australia, Annu al Report 2009-2010. p. 57. D efence Housing Au stralia. Annu al Report 2009-20 I 0. p. 65. Defence Housing Australia, Annu al Report 2009-2010. p. 65. Ddence Housing Australia. Statem ent of Corporate Intent 2010-201 1. p. I. D efence Housing A ustralia. Statement of Corporate Intent 2010-201 1. p. 2. D efence Housing Australia, Statem ent of Co rporate Intent 20 I 0-20 I I. p. 2.

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Chapter 2 Annual reports of statutory and non-statutory authorities and govemment companies 15

Financial Statements

2.38 The ANAO conducted an independent auditor's report which concluded that the financial statements of the DHA have been prepared (a) in accordance with the Finance Minister's Orders made under the Commonwealth Authorities and Comp anies Act 1997 and (b) give a true and fair view of the matters required by the Finance

Minister's Orders including the Defence Housing Australia's financial position as at 30 June 2010 and its financial performance and cash flows. 28

2.39 The committee finds that this report complies adequately with all reporting requirements for statutory bodies.

Defence Force Remuneration Tribunal

2.40 The Defence Force Remuneration Ttibunal twenty-fifth report 2009-2010 was tabled in the Senate on 16 November 2010.

2.41 The functions of the Tribunal are to:

(a) inquire into and determine the salaries and relevant allowances to be paid to members; and

(b) inquire into and make detem1inations in respect of presctibed matters that have been referred to the Tribunal. 29

2.42 The Tribunal consists of three members who are appointed by the Governor " General. In accordance with the relevant legislation the President is a presidential member of Fair Work Australia. The other members are: a person who is experienced in industrial relation s matters; and a person who has been a member of the ADF. 30

2.43 Matters considered by the Tribunal during the reporting period included:

(a) ADF officer aviation remuneration structure;

(b) ADF workplace remuneration arrangement 2009-20 I I;

(c) graded officer pay structure;

(d) graded other ranks pay structure;

(e) medical officers; and

(f) two yearly review of allowances.

2.44 In its report , the Tribunal provided a thorough account of 'all m atters considered' during the reporting year. It disclosed infom1ation on the outcomes of each review and on the negotiatin g process that occurred between the parties involved.

28 Defence Housing Au stralia. Annua l Report 2009-2010. p. 91. 29 D efence Act 1903. section 58 H. 30 Defence Force Remuneration Tribunal A nnual Report. 2009-20 I 0. p. 3.

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16 Chapter 2 Annual reports of statutory and non-statut ory authorities and government companies

2.45 The committee finds that this report adequately complies with all reporting requirements for statutory bodies.

Judge Advocate General

2.46 The Judge Advocate General annual report for the period 1 January 2010 to 31 December 2010 was tabled in the Senate on 14 June 2011.

2.47 The office of the Judge Advocate General (JAG) of the Australian Defence Force was created by s. 179 of the Defence Force Disciplin e Act 1982 (DFDA). The current JAG , Major General the Hon Justice R R S Tracey, RFD , was reappointed as JAG on and from 10 February 2010 for a term of four years. The JAG also holds the appointment of President of the Defence Force Discipline Appeals Tribunal (DFDAT).

2.48 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 Force31;

(b) making Procedural Rules for Service tribunals , being Court Martial and Defence Force Magistrate Rules, and Summary Authority Rules

(c) nominating the judge advocate for a court martial 32 and Defence Force maaistrates 33 . 0 ' (d) nominating to a Service Chief officers to be members of the judge advocate's panel3-l

( e) appointing Defence Force magistrates from officers appointed as members of the judge advocate panel35;

(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 tiibunals.

Operation of the Superior Militmy Tribunals

2.49 The number of matters proceeding before court martial and Defence Force Magistrate are largely consistent with the volume of work which was heard by the

31 DFDA s. 196A.

32 DFD A s. 1298.

'' .).) DFDA s. 129C. 34 DFDA s. 196.

35 DFDA s. 127.

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Chapter 2 Annual report s of statutory and non-statut ory authorities and govemment companies 17

former Australian Military Court. 36 The JAG noted that the interim measures for these superior military tribunals have operated satisfactorily during the reporting period. 37

2.50 The JAG noted that in the case of a General Court Martial, it is necessary for the Registrar to panel a court comprising at least five officers including a president of the rank of Colonel Equivalent or above. The work associated with this, including the screening process to identify availability and to avoid potential bias, is generally the equivalent of the administrative effort that was required to panel a jury of six for the fom1er Australian Military Court. 38

2.51 In the case of a matter refeiTed for trial before a court martial , the court martial must be assembled and sworn, even in the event of a plea, because the president and members will proceed to impose sentence having had appropriate directions from the judge advocate. 39 The JAG expressed the view that if the number of matters that are referred to court martial is to continue, it will be necessary to review the levels of staffing within the Registrar's office .

The Operation of DFDA s.62

2.52 DFDA s.62 creates the offence of commanding or ordering a service offence to be committed. Defence Legal raised issues , with this section, to the Office of Parliamentary Counsel, with a view to recommending legislati ve amendment. Legislative amendment was not introduced during the reporting period.

Appeals to the D FDA T

2.53 During the reporting period, there were four appeals to the DFD AT in connection with convictions recorded by court martial and Defence Force Magistrate . Each of these appeals was allowed, at least in part except for Da vis v Chief of Army [20 11] AD FDA T 1 which was dismissed. These were:

(a) Flynn v Chief of Army [2010] ADFDAT 1

(b) Parker v Chief of Air Force [201 OJ ADFDAT 2

(c) W atson v Chief of Army [2010] ADFDAT 3

(d) Davis v Chief of Army [20 11] AD FDA T 1

High Court Challenge

2.54 A writ of summons was filed in the High Court in the matter of N icholas v the Commonvvealth of Australia and the Chief of the D efence Force No S 183 of 20 I 0, during the reporting period, seeking a declarati on, inter alia, that such of the

36 Judge Advocate General A nnual Report. 2010. p. 5.

37 Judge Advocate General Ann ual Report. 2010. p. 5.

38 Judge Advocate General Annual Report. 2010, p. 5.

39 Judge Advocate General An nual Report. 2010. p. 6.

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18 Chapter 2 Annual reports of statutory and non-statutory authorities and government companies

provisions of the Militmy Justice (Interim Measures) Act (No 2) 2009 as purport to give effect to punishments imposed and orders made by the former Australian Military Court are invalid. The application was heard on 29 March 2011. At the time of reporting , the High Court had reserved its judgement. 40

Conclusion

2.55 In conclusion, the JAG stated that:

The interim anangements reinstating the system of trial by court martial and Defence Force Magistrate are operating satisfactorily. However the number of matters proceeding to court martial (as opposed to Defence Force Magistrate) is significantly out of proportion with the demands immediately preceding the purported establishment of the fom1er Australian Military Court. 41

Royal Australian Air Force Welfare Recreational Company (RWRC)

2.56 The Annual Report of the Royal Welfare Recreational Company (RWRC) for the year ended 30 June 201 0 was tabled in the Senate on 10 May 2011.

2.57 The RWRC was incorporated on 25 October 1972 to administer the assets of the RAAF Central Welfare Trust Fund and is subject to the Corporations Act 2001.

2.58 The RWRC has established an audit committee comprising of three members. The objectives of the Audit Conunittee are:

(a) Improving the effectiveness and efficiency of RWRC's internal control framework;

(b) Ensuring that RWRC has appropriate risk identification and management practices in place;

(c) Improving the objectivity and reliability of financial reporting ;

(d) Ensuring that RWRC has adequate procedures on matters of audit independence; and

(e) Assisting the Board to comply with all governance and other obligations .

2.59 The RWRC armual report is in accordance with the CAC Act. The annual report includes a 'report of operations' which is prepared by the Chainnan. It details rental activities of the Ambassador, Tuscany and Manakai facilities. The Board made the decision to increase the rates of all facilities by 10%, effective 1 August 2010. The report of operation includes an outline of the organisational structure; review of operations and future prospects ; reviews by outside bodies; RWRC board of directors; and board member's attendance at meetings.

40 Judge Ad vocate G eneral A nnual Report. 2010. p. 8. 41 Judge Ad vocate General Annu al Report. 20 I 0. p. 12.

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Chapter 2 Annual reports of statutory and non-statutory authorities and government companies 19

2.60 The report also includes financial statements and a delegate of the Auditor-General's report on those financial statements, in accordance with the CAC Act.

2.61 The committee finds that this report complies adequately with all reporting requirements for statutory bodies.

Non-Statutory authorities and government companies

ASC Pty Ltd-Annual Report 2010

2.62 The ASC Pty Ltd Annual Report 2009 was tabled m the Senate on 23 November 2010.

2.63 Initially established in 1985 as Australian Submarine Corporation, ASC was subsequently chosen in 1987 as the prime contractor for the design, manufacture and delivery of the Royal Australian Navy's (RAN) fleet of six Collins Class submarines.

42

2.64 ASC Pty Ltd is a proprietary company limited by shares registered under the Corporations Act 2001. All the shares issued in the capital of ASC Pty Ltd are owned by the Minister for Finance and Deregulation. 43

2.65 In his chairman's report , Vice Admiral Chris Ritchie AO RANR , stated that 2009110 represented a period of significant internal change. 44 Specifically three members of the board retired and four new board members were appointed. 45

2.66 The principal activities of the ASC Pty Ltd during the course of the financial year ending 30 June 201 0, included:

(a) Collins class submarine related activities; and

(b) Hobart Class A WD related activities

Collins Class Submarine Project

2.67 ASC Pty Ltd carries out maintenance, upgrades and engineering activities for the Collins Class submarines under an agreement with DMO, called Through Life Support (TLS).46 ASC Pty Ltd is in the seventh year of the Collins Class submarine TLS contract.

47

The contract is due to expire in 2018, subject to exercise of options

42 ASC Pty Ltd. Annual Report 20 I 0. p. 4.

43 ASC Pty Ltd. Annual Report 20 I 0. p. 20. 44 ASC Pty Ltd. Annual Report 20 I 0. p. 6.

45 ASC Pty Ltd. Annual Report 20 I 0. p. 8. 46 ASC Pty Ltd. Annual Report 20 I 0. p. I 0. 4 7 ASC Pty Ltd. Annual Report 2010. p. 26.

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20 Chapter 2 Annual reports of statut ory and non-statutory authoriti es and government companies

for two further five-year periods-consistent with the expected life of the Collins Class submarines. 48

2.68 In this reporting period, the major submarine related activities included maintenance, design development, engineering and upgrading of six submarines for the RAN. These activities were undertaken for the Collins Class submarines under the TLS Contract.

2.69 During 2009-2010, ASC Pty Ltd maintained Collins Class submarines at ASC's facilities in South Australia (ASC North) and Western Australia (ASC West). Three submarines were operational by the end of 20 10. 49

Activities undertaken from

ASC North included:

(a) one full cycle docking;

(b) one intem1ediate maintenance availability;

(c) a main motor refurbishment;

(d) a pre-full cycle docking;

(e) crew training on operational deployment;

(f) one intem1ediate maintenance availability;

(g) a main motor refurbishment with an in country contractor;

(h) metal loss repairs of bilges and surrounding tanks; and

(i) preparations for a full cycle docking due to commence in Januaty 2011.

2.70 Activities conducted at ASC's West included:

(a) technically challenging generator repairs;

(b) one intem1ediate docking; and

(c) one certification docking.

2.71 Major achievements included:

(a) exploration of efficiencies in the Collins Class maintenance project ;

(b) obsolescence management;

(c) development of design improvements to platfom1 systems and equipment;

(d) on schedule and successful completion of a Critical Design Review of the A WD project ;

(e) successfully introducing the Matrix One Product Lifecycle Management Systems and Aveva ma1ine 3-D CAD ;

48 ASC Pty Ltd. Annual Report 20 I 0. p. 25. 49 ASC Pty Ltd. Annual Report 2010. p. 7.

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Chapter 2 Annual reports of statutory and non-statutory authorities and government companies 21

(f) development of in situ repair to rectify banding problems with the 5.4 MW Jeumont DC propulsion motors;

(g) a complex in situ repair and rewinding after a main generator failure and

(h) increased focus on on-going reliability problems with the Hedemora diesel engines.

Establishments in 2010

2.72 The Australian Submarine Project Officer (ASPO) was established in 2010. The managing director stated that the establishment of the ASPO will maintain close cooperation between ASC, DMO and the RAN. 50 The Techport Australia's Common User Facility (CUF) also opened in 2010.

Hobart Class AWD related activities

2.73 Activities continued under the Alliance Based Target Incentive Agreement (ABTIA) with other members of the A WD Alliance, the Commonwealth of Australia represented by the DMO , and Raytheon Australia. The ABTIA commits the Alliance members to work as an integrated team to deliver the RAN's next generation

"I

warships.)

2.74 The Directors Report noted that:

Since entering into the alliance based contract for the design and construction of three Hobart Class A WDs in October 2007, key milestones have been completed according to plan, most notably the Integrated Baseline Review in July 2008, the Preliminary Design Review in December 2008 and the Critical Design Review in December 2009. Contracts have been placed with BAE Systems Australia Defence Pty Ltd (BAE) and FORGACS Engineering Pty LTd (FORGACS) for the construction of ship blocks, and production activities have commenced on both sites. Production activities have also commenced in ASC's shipyard. Across the three sites construction of eleven blocks has commenced for Ship 1, in addition to two pilot blocks at ASC and FORGACS . Procurement of major combat systems and platform equipment continues in accordance with programs requirements . Development activities on ASC's shipyard comp leted during

the period, with all buildings now operational and the workforce in residence. 5 ~

2.75 In 2010, together the Alliance partners , ASC managed key aspects of the A WD project, including:

(a) development of the Alliance team;

(b) alliance schedule and budget;

50 A SC Pty Ltd, Annual Report 2010. p. 9.

51 A SC Pty Ltd. Annual Report 2010. p. 25.

52 ASC Pty Ltd. A nnual Report 2010. p. 26.

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22 Chapter 2 Annual report s of statutory and non-statut ory authorities and government companies

(c) alliance program review milestones;

(d) the review combat system, ship design and shipbuilding progress;

(e) procurement of equipment and materials; and

(f) commencement of Ship 1 construction at three Australian sites.

Review of Operations: One Company Transformation

2.76 A key initiative that ASC Pty Ltd undertook in 2010 was the 'One Company' transfmmation. In May 201 0 ASC Pty Ltd had an amalgamation of the Submarine and Shipbuilding sides of the business. 53 The Chairman, Vice Admiral Chris Ritchie AO RANR, stated that this transfom1ation resulted in job losses where duplication existed 54--41 personnel were made redundant and 34 unfilled positions were abolished 55-but allowed ASC Pty Ltd to become "more customer focussed and efficient across the business" 56

Deep Blue Tech

2. 77 Deep Blue Tech (DBT) is a wholly owned subsidiary of ASC Pty Limited. DBT was established in 2007 to conduct research and develop concepts for Australia's SEA 100 Future Submarine project. The projects that DBT worked on for the reporting period include:

(a) defining the processes necessary for early concept design and developing the requirements for the project;

(b) identifying key activities and resources for the lifecycle of the project;

(c) developing models capturing the sources of propagation paths for critical signatures for the future submarines;

(d) developing a whole-of-submarine model called Subsim;

(e) evolving a model for developing a system architecture, based on best practice systems engineering and open architecture principles;

(f) developing solutions to increase habitability ; and

(g) studying combat systems, auxiliary systems, and energy and propulsion solutions for various submarine concept designs

ASC Pty Ltd. A nnual Report 20 I 0. p. 9.

AS C Pty Ltd. A nnual Report 20 I 0. p. 7.

A SC Pty Ltd. Annu al Report 2010. p. 25.

A SC Pty Ltd. Annual Report 20 I 0. p. 9.

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Chapter 2 Annual reports of statutory and non-statut ory authoritie s and government companies 23

Work Smart program

2.78 In 2009 the 'Work Smart program' was initiated. The program aims to identify sources of waste and eliminate them in order to improve processes , performance, and customer and staff satisfaction. 57 During 2009-20 I 0 the projects included:

(a) the 'Pipe Shop 5S' project which reviewed and improved the handling of piping material during the refurbishment process;

(b) a joint ASC-DMO program called Management of Work;

(c) six improvement events; and

(d) two workshops set up to improve the processes and performance in the delivery of engineering, materials, workpacks and scheduling.

Code of Conduct

2.79 ASC Pty Ltd has implemented a Code of Conduct for directors and executives which seeks to:

(a) articulate the behaviour expected of directors and executives ;

(b) encourage the observance of those standards to protect and promote the interests of shareholders and other stakeholders;

(c) guide directors and executives as to the practices considered necessary to maintain confidence in the ASC Pty Ltd Group's integrity; and

(d) set out the responsibility and accountability of directors and executives to report and investigate any reported violations of the Code of Conduct or unethical or unlawful behaviour.

2.80 ASC Pty Ltd has presented a comprehensive and informative report. The committee finds that it adequately complies with all reporting requirements.

2.81 The committee considers that all the annual repot1s of the abovementioned organisations fully met their respective reporting requirements .

Senator Ursula Stephens

Chair

57

ASC Pty Ltd. A nnual Report 2010. p. 14.

157

158

25

Appendix 1

Defence Portfolio

List of annual reports tabled during the period 1 November 2010 to 30 April 2011 and referred to the committee

Department/ Agency Date of Date sent to Date Date tabled

transmittal Minister (if received by in Senate letter (if known) Minister (if

known) known)

AAF Company 14/6/2011

ASC Pty Ltd 23/11/2010

Austral ian Agency 9/2/2011

for International Development

Australian Centre for 16/11/2010

International Agricultural Research

Australian Strategic 16/11/2010

Policy Institute Limited

Australian Trade 16/11/2010

Commission

Defence Force 16/11/2010

Remuneration Tribunal

Defence Housing 16/1112010

Australia

Defence Housing 23/11/2010

Australia , Statement of Corporate Intent

159

Appendix 1 Annual Reports referred to the Committee

Department of 24111/2010

Defence

Director of Military 14/6/2011

Prosecutions

Department of 16/11/2010

Veterans' Affairs-Data Matching program

Judge Advocate 14/6/2011

General

Repatriation 16/11/20IO

Conu11ission, Military R ehabilitation and

Compensation Commi ssion and the Department of Veterans' Affairs

Royal Australian Air 9/2/2011

Force Veterans' Residences Trust Fund

Royal Australian Air 10/5/20 II

Force W elfare Recreati onal Compan y

Royal Australian 16/11/2010

Navy Central Canteens Board

Services Trust Funds I6/11/20I 0

160

The Senate

Legal and Constitutional Affairs

Legislation Committee

Annual report s (No. 2 of 20 11)

A ugust 2011

161

©Commonwealth of Australia

ISBN: 978-1-74229-509-1

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

162

MEMBERS OF THE COMMITTEE Members

Senator Patricia Crossin, Chair, ALP, NT

Senator Gary Humphries, Deputy Chair, LP, ACT

Senator Sue Boyce, LP , QLD

Senator Mark Furner, ALP , QLD

Senator Louise Pratt, ALP, WA

Senator Penny Wright, AG, SA

Secretariat

Ms Julie Dennett

Ms Margaret Cahill

Ms Hana Jones

Suite S1.61

Parliament House

Committee Secretary

Research Officer

Administrative Officer

Telephone: (02) 6277 3560

Fax: (02) 6277 5794

CANBERRA ACT 2600 Email: le2con.sen(a aph.!!m∑ .au

Ill

163

164

TABLE OF CONTENTS

MEMBERSHIP 0 F COMMITTEE ............................................................................. 111

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

Tenns of reference .......................... ....... ................. ........ .......... ....... ............ .... ..... vii

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

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

'A tl t' f: t I " " " pparen y sa IS ac ory ................................... .......................... ......................... v111

T . ,. .

une 1ness ...... .... ............. .... ........... ...... ... .... ..... ..... ............. ...... ........... ... ................ 1x

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

ANNUAL REPORTS OF STATUTORY AUTHORITIES ................................. }

Attorney-General's Portfolio .......... ............ .................... ................... ... ..... ............. I

Immigration and Citizenship Portfolio ........................................................ ...... ... .. 1

Australian Customs and Border Protection Service (Customs) ............................. 2

Australian Human Rights Commission (AHRC) ........... ..................................... ... 3

Insolvency and Trustee Service Australia (ITSA) ...... .............. ......... ................... .4

Migration Review Tribunal (MRT) and Refugee Review Tribunal (RRT) ........... 6

CHAPTER 2 ........................................................................................................ 9

REPORTS ON THE OPERATION OF ACTS AND PROGRAMS ................... 9

Report under the Surveillance Devices Act 200-1 .................. ...... .... ........ ....... ...... .. 9

Protection visa processing taking more than 90 days ...... ....... ............. ..... ..... ....... 11

Refugee Review Tribunal reviews not completed within 90 days ...... ................. 12

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

Reports tabled during the period I November 201 0 and 30 Apri I 20 I I and referred to the con11nittee ................................. .................................. ................... 13

165

166

PREFACE

Terms of reference

On 29 September 2010, a resolution of the Senate allocated the following portfolios to the Senate Standing Committee on Legal and Constitutional Affairs:

" 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 refetTed 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 repo11s 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 rep011, take into account any relevant remarks about the report made in debate in the Senate;

(e) If the committee so detetmines, consider annual rep011s of depa11ments 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 fumishing the annual rep011s; and

(h) Repo11 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.

167

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 D epartments, Executive Agencies and FMA Act Bodies, (the 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 Manag em ent and Accountability Act 1997 (FMA Act).1

Orders made by the Minister under section 48 of the Common wealth Authorities and Companies Act 1997 (CAC Act) set out guidelines for the annual reports of Commonw ealth authorities . The content of annual reports of Common w ealth companies is based on the reporting requirements under the C01porations Act 200 I, in accordance with section 36 of the CAC Act.

Statutory authorities must also report in accordance with their establi shing legislation .

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 R equirem ents for the Annual Reports of Non-Statutmy Bodies. The Go vernment Response was incorporated into the Senate Hansard of 8 December 1987.2

'Apparently satisfactory'

Under the tem1s of Standing Order 25(20)(a) , the committee is required to report to the Senate whether reports are 'apparently satisfactory'. In making this assessm ent, the committee considers such aspects as compliance with relevant reporting guidelines.

D epartm ent of the Prime Ministe r and Cabinet. Requirem ents for Annual Reports, 23 June 20 I 0. Part L subsection 3(1 ).

2 O.ffic ial Senate H ansard. 8 December 1987. pp 2643-2645.

V III

168

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 published in June 2010, 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 Estimates is 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. 3

If a department is unable to meet this deadline, the secretary of that department 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 on the next available sitting day.

4

Subsection 9( 1) of the CAC Act requires the director of a Commonwealth authority to: (a) prepare an annual repo11 in accordance with Schedule I 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 fmther period granted under subsection 34C(5) of the Acts Inte1pretation Act 1901.

Under section 36 of the CAC Act:

3 D epa11ment of the Prime Minister and Cabinet. Requirem ents for Annual Reports. 23 June 2010. Part I. section 4.

4 Department of the Prime Minister and Cabinet. G uidelines/or the Presentati on ofGo1'ernment D ocum elll s to the Parliament. CanbeiTa. July 2008, p. 5.

IX

169

(I) 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 Co1porations 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 infmmation or rep011 required by the Finance Minister's Orders.

(IA) The Commonwealth company must give the reports and information by: (a) if the company is required by the Cmporations Act 2001 to hold an annual general meeting-the earlier of the following:

(i) 21 days before the next annual general m eeting 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 lnte1pretation Act 1901.

In the absence of any specific provision, the A cts Interpretation Act 1901 requires bodies to present annual reports to ministers within 6 months after the end of the period reported upon (subsection 34C(2)), and ministers must table reports within I 5 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) benveen 1 November 2010 and 30 April 201 I, and which have been referred to the committee for examination, can be found at Appendix 1.=' Also included in this table, is the date each report was tabled in the House of Representatives.

Although the annual reports of FMA Act bodies examined in this report missed the 31 October 2010 tabling deadline for the Senate, the committee notes that a number of reports were tabled in the House of Representatives before that date. The committee further notes that the annual reports of the Australian Crime Commission and the Migration Review Tribunal and Refugee Review Tribunal were tabled in both Houses of Parliament on 24 November 2010 and I 6 November 2010, respectively , and hopes to see more timely tabling of future reports.

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. 6

5 This table also include s the reports on the operation of acts or program s which have been refened to the committee.

6 Department of the Prime Minister and Cabinet. Requirem ents/or Annual Reports. 23 June 2010, Pa11 1. Section 4.

X

170

Requirement for non-reporting bodies to report

In accordance with Standing Order 25(21 )(h), the committee is required to report on bodies which do not present an annual report to the Senate and which should present such a report.

On this occasion, the committee makes no recommendation for any organisation not presenting an annual report to do so.

X I

171

172

CHAPTER!

ANNUAL REPORTS OF STATUTORY AUTHORITIES

1.1 The reports of the following statutory authorities for the financial year 2009-10 were referred to the committee for examination and report.

Attorney-General's Portfolio

" Audio-Visual Copyright Society Limited (Screeruig hts)

"

"

"

"

"

"

"

Australian Crime Commission

Australian Customs and Border Protection Service

Australian Human Rights Conunission

Commonwealth Director of Public Prosecutions

Commonwealth Ombudsman

Copyright Agency Limited

Insolvency and Trustee Service Australia

Immigration and Citizenship Portfolio

" Migration Review Tribunal and Refugee Review Tribunal

1.2 As in previous reports of the committee, it has decided to select a small number of annual reports for closer examination. On tllis occasion, the reports of the following agencies will be examined:

" Australian Customs and Border Protection Service;

" A ustralian Human Rights Commission;

" Insolvency and Trustee Service Australia; and

" Migration Review Tribunal and Refugee Review Tribunal.

1.3 The cornnlittee has detem1ined to consider , but not report on, the annual report of the Australian Crime Conm1ission, as the Parliamentary Joint Conm1ittec on Law Enforcement has specific responsibility for overseeing this agency.

1.4 The annual report of the Commonwealth Ombudsman also stands referred to the Senate Finance and Public Admin istration Legislation Committee and, as tllis body sits witllln the Prime Minister and Cabinet Portfolio , the committee has also detem1ined to consider , but not to report on, this ammal rep011.

173

Pagel

Australian Customs and Border Protection Service (Customs)

1.5 The annual report of Customs was tabled in the Senate on 16 November 2010 and in the House of Representatives on 28 October 2010. The Minister received the report on 7 October 2010 and satisfied the legislative requirement of presenting the report in each House of Parliament within 15 sitting days of receipt.

1.6 The report includes a list of requirements , 1 now mandatory under the Requirements for Annual Reports, which assisted the committee in its examination of the report. The report closely adheres to the Requirements.

1. 7 Customs has again presented an impressive report which provides the Parliament with a useful and detailed description of performance and achievements for the year under review. Performance information was presented for the five programs which contribute to the agency outcome, and also against each of the six border risks which the agency manages: terrorism; irregular movement of people; biosecurity ; prohibited , restricted or regulated goods; unlawful activity in Australia's maritime zone; and revenue.

1.8 In his review, the Chief Executive Officer highlighted a number of achievements for 2009-10, including the delivery of an effective maritime security program that successfully deterred illegal foreign fishing in Australia's northern waters and maintained an effective on-water interception response to maritime people smuggling. Other achievements included the prevention of an extensive range of prohibited, restricted or regulated goods entering Australia; the facilitation of travel by processing of over 26 million international passengers with an average of 97.9% of inwards passengers processed within 30 minutes of joining the queue; and the facilitation of trade by processing air and sea cargo in internationally competitive release times. 2

1.9 Following the examination of last year's annual report, which highlighted the development of the risk-based approach to cargo intervention, the committee was interested in the results of its implementation. 3 This year's report outlined the implementation of the Cargo Intervention Strategy which resulted in a move from mass screening to an intelligence-led, risk-based approach to intervention. It was explained that under the refined system all air and sea cargo will continue to be risk " assessed electronically. Cargo identified as high-risk will be subject to physical examination.

4

1.10 The report noted:

A ustralian Customs and Border Protection Sen ∑ ice Annual Report 2009-10. pp 230-233.

2 Australian Customs and Border Protection Sen " ice Annual Report 2009-10. pp xi-xii.

3 Legal and Constitutional .~[fairs Legislation Committee. Annual Reports (No.2 of2010). p. 2.

4 Australian Custom s and Border Protection Serl'i ce Annual Report 2009-10. p. 25.

174

Despite considerably reduced intervention across all streams, we maintained a comparable detection rate against 2008-09 detections, although there was a decline in the overall weight of drugs detected in sea cargo during 2009-10.5

Page 3

1.11 The committee notes the financial performance of Customs this year included an operating surplus of $4.5 million. This compares to an operating deficit of $11.8 million for 2008-09.6

1.12 The committee commends Customs for the high standard of design and presentation of this year's report. Particular features which the committee notes, include clear layout and overall design, and the use of tables and graphs to assist in presenting information. The conm1ittee considers the annual report of Customs for 2009-10 to be 'apparently satisfactory' .

Australian Human Rights Commission (AHRC)

1.13 The annual report of the AHRC for 2009-1 0 was tabled in the House of Representatives on 28 October 2010 and in the Senate on 16 November 2010. The report was tabled promptly after receipt by the Minister on 26 October 2010.

1.14 Early in the report, ten key achievements for the year are listed and sunm1arised. These include the launch of the 2009 Social Justic e Report, the Human rights consultation and framework, assisting in the creation of the National Congress of Australia's First Peoples, and the launch of the Gender Equality Blueprint 2010.7

1.15 The committee was once again disappointed to note that, although performance infom1ation was provided, it was not always evaluated against key perfom1ance indicators as presented in the Portfolio Budget Statements (PBS) 2009-10 for the agency. For example, performance information in relation to website usage and distribution of publications indicated that targets were exceeded in both areas. However, the report does not note the results as compared to the targets. 8 The report incorrectly refers the reader to Appendix 1 for further information. The correct appendix is Appendix 2, and provides a breakdown of the website usage, but no reference to performance targets. 9

1.16 Another key perfom1ance indicator in the PBS for 2009-10 relates to the customer/stakeholder survey to rate the effectiveness of major educational and promotional activity , with an 80% target rate as effective. The results of this survey could not be located in the report.

5 A ustralia n Customs and Border Protection Sen " ice Annual Report 2009-10. p. 22.

6 Australian Cu stoms and Border Protecti on Service Annual Report 2009-10. p. 126.

7 Australian Human Rights Commission A nnua I Report 2009-10. pp 8-9.

8 Australian Human Rights Commis sion Annual Report 2009-10, p. 22.

9 Australian Human Rights Commis sion A nnua 1 Report 2009-10, p. 143.

175

Page 4

1.17 Conversely, performance information in relation to complaints handling was well set out, with results presented against performance standards. The report notes that assisting in the resolution of complaints about discrimination and breaches of human rights is a core function of the agency. All performance targets in relation to complaints handling were exceeded for 2009-10.

10 The report also includes detailed

breakdown of statistics on the different categories of complaints received, which provides useful background. 11

1.18 The Commission's financial statements indicated that the agency again ran at an operating deficit of $614,000. 12 The committee could not locate any discussion on

financial perfonnance for the year under review within the body of the report.

1.19 The report generally follows the Requirements for Annual Reports. However, the committee was disappointed to note again this year that a list of requirements with an index of page references was not included. The committee has suggested previously , when it was not a mandatory item, the inclusion of a compliance index as an accountability device and to assist in examination of the report. It is now a

mandatory item under the Requirements for Annual Reports issued in June 2010, which were applicable to this annual report of the AHRC. The Requirements state:

The List of Requirements must be included as an appendix to the annual report. If an item specified in the checklist is not applicable to an agency, it should be reported as not applicable rather than omitted from the list. Agencies should include a column indicating the location of the inf01mation in the annual report. 13

1.20 The committee considers the AHRC annual report 2009-10 to be 'apparently satisfactory', but does express concern about its overall quality and accuracy. The committee hopes to see relevant omissions corrected in the AHRC's next annual report.

Insolvency and Trustee Service Australia (ITSA)

1.21 While the annual report of ITSA for 2009-10 was not tabled in the Senate until 16 November 2010, the committee notes that it was tabled in the House of Representatives on 28 October 2010. The rep011 was submitted to, and received by, the Minister on 12 October 2010.

1.22 The committee was pleased to note that, in exammmg the annual report against the list of requirements under the Requirements for Annual Reports, all mandatory items were included in the report and a number of suggested items were

10 Australian Human Rights Co mmission Annual Report 2009 -10. p. 99.

11 Australian Human Rights Co mmission Annual R eport 2009 -10. pp 74-90.

12 Australian Human Rights Co mmission Annual Report 2009 -10. p. 107.

13 Department of the Prime Minister and Cabinet, Requirem ents for Annual Reports. 23 June 2010. p. 33.

176

Page 5

also included. 14 The report includes an index to the 'list of requirementstl 5 which referenced page numbers in the report. However, the index contains incorrect page number references for nearly all the items listed and appears to be a copy of the index from last year's annual report. The committee considers this to be an unfortunate error, in addition to some other minor editing oversights,

16

which detract from the overall

quality of the report.

1.23 The Chief Executive's review outlines areas of change and renewal within the agency during the year under review, as well as the provision of key statistics. Some areas of note include the smooth implementation of a new business structure on 1 July 2009, and the publication of a vision statement embodying the core values and aspirations of the organisation. 17

1.24 Also noted in the Chief Executive's review was ITSA's close working relationship with the Attorney-General's Department to progress the implementation of the new Personal Properties Securities regime, where ITSA will assume operational responsibility for the Personal Properties Securities Register and the associated Contact Centre to be established in Adelaide. 18

1.25 The Chief Executive reported an overall marginal increase of 0.07% in total activity under the Bankruptcy Act 1966 for 2009-10 from the previous year. These responsibilities comprise bankruptcies , debt agreements and personal insolvency agreements. It was further noted that tllis is the fourth consecutive year of growth.

19

1.26 Performance infonnation is thorough and well presented. In some instances , data from the previous year (or years) is included to provide trend information. The discussion of the performance results is informative and concise, without focussing excessively on the detail of activities performed in achieving results. 20

1.27 For some programs, the perfom1ance discussion includes a brief case study or case studies. The committee found these useful to illuminate some of the processes in which the agency is involved.

14 See, for example, sections on suggested items: nam es of senior executives and their responsibiliti es, pp 13-14; the social justice and equity impact p. 56: policy and practice s on the establishm ent and maintenance of appropriate ethical standards p. 63.

15 Insolvency and Tm stee Ser\' ice Australia Annual Report 2009-10. pp 157-158.

16 See, for example, inconect page number references. !nsol\'en(1' and Trustee Sen ∑ ice Australia Annual Report 2009-10. pp 63 and 135.

17 Insolvency and Trustee Service Australia Annual Report 2009-10. p. 10.

18 Insolven(v and Trustee Service Australia Annual Report 2009-10. p. 10.

19 !nsolvenc.v and Trustee Service A ustralia Annual Report 2009-10, p. 10.

20 !nsoh∑ enc_r and Trustee Sen ∑ ice Australia Annual Report 2009-10. pp 17-47.

177

Page 6

1.28 In the section on Client Service, the committee notes that general complaints have increased from 409 in 2008-09 to 456 in 2009-10. It was further noted that, of these, 33 8 were considered either justified or partially justified. The report explains that 'general complaints' concerned service delivery standards, as distinct from complaints about the way in which debtors became bankrupt, which is outside ITSA's contro1. 21 While the committee acknowledges that the large increase in recent years is attributed to a new complaints and compliments management system which was rolled out during 2007-08,

22

it nonetheless notes the continued rise in general complaints during the most recent financial year. 23

1.29 Last year's annual report identified the time taken to deal with complaints as an area for improvement in 2009-10. In that report, it was noted that 55% of complaints were resolved in 14 days and over 18% of complaints took in excess of 150 days to finalise.

24

It was disappointing that the 2009-10 report did not appear to follow up on this particular issue. The committee will continue to monitor this issue in future reports.

1.30 On a more positive note, the committee notes that compliments about the quality of service provided by ITSA employees increased slightly to 228 in 2009-10, from 215 for the previous year. 25

1.31 The committee considers the annual report of ITSA to be 'apparently satisfac tory'.

Migration Review Tribunal (MRT) and Refugee Review Tribunal (RRT)

1.32 The report of the MRT-RRT was tabled in both the Senate and the House of Representatives on 16 November 2010. The Princip al Member was questioned on this matter by the committee during the supplementary budget estimates 2010-11 hearings on 19 October 20 I 0:

Senator BARNETT - Firstly , based on your statement here, your annual report is to be lodged next month. What is the reason for the delay?

Mr O'Brien-As you know , Senator, last year we managed to table our report before the hearing of this committee. The process associated with the election was the main delay factor in gettin g our financial statements approved by the minister and so forth. That was the main contributor.

21 Insolvency and Trustee Service Australia Annual Report 2009-10. p. 53.

22 lnsolvenc.v and Trustee Service Australia Annual Report 1008-09,

23 54 in 2005-06; 23 in 2006-07: 62 in 2007-08.

24 Insolvency and Trustee Serl'i ce Australia Annual Report 1008-09. p.

25 Insolvency and Trustee Service Australia Annual Report 1009-10. p. 54. Th e committee notes that the figure for the total number of compliments received in 2008-09. referred to in the current report as '58'. is incorrect and the correct figure as listed in the 2008-09 annual r eport is 215.

178

Senator BARNETT-We try and have these reports in advance of estimates so that we can then talk and ask questions about the reports. That is our objective; you are aware of that?

Mr O'Brien-Yes, I understand that. 26

Page 7

1.33 As noted in the Preface to this report, the committee hopes to see a more timely tabling of the annual report in the future.

1.34 There was an increase in lodgements and in the number of cases decided by the combined tribunals in 2009-10. Case decisions increased from 8,229 in 2008-09 to 9,737 in 2009-10 (the largest number of cases since 2005-0627). Eighteen per cent more cases were decided by the tribunals in comparison to the previous year. 28

1.35 The committee was pleased to note that the percentage of tribunal decisions taken to judicial review declined in 2009-10. The report notes that judicial review applications were lodged in relation to 7. 7 per cent of tribunal decisions in 2009-10, compared to 13.2 per cent of decision made in 2008-09.29

1.36 The Principal Member's report on the tribunals' operations for 2009-10 provides a good account of what is described as a 'challenging year'. In addition to the increase in overall workload, it was also reported that there were significant changes to the composition of the MRT lodgements and the representation of source countries for the RRT caseload. The Principal Member addressed these challenges:

To respond to the increasing volume and shifting composition of the tribunals' caseload we have developed strategies, underpinned by extensive analysis of the caseload, to allocate cases to members in a way that makes the most efficient and effective use of member resources. In 2009-10 the target was to allocate 10,000 cases for the year and, in the end, 9,428 cases were allocated to memb ers. This result was affected by the need to reallocate cases from 21 m embers who were not reappointed for a further term.30

1.3 7 The performance section is clearly laid out with results presented against targets set for key performance indicators and deliverables. 31 This section of the report articulates the strategies which have been implemented in response to the growth in the MRT caseload, which includes:

[I]mproved case m anagement training for members; increasing the opportunities for members to specialise , recognising that appropriate

26 Committee Hansard, 19 October 2010, p. 10.

27 Migration Rel'iew Tribunal and Refugee Revie1v Tribunal Annual Report 2009-10 , p. I 0.

28 Migration Review Tribunal and Refugee Review Tribunal Annual Report 2009-10, p. 10.

29 Migration Re1 "iew Tribunal and Refugee Review Tribunal Annual Report 2009-10, p. 11.

30 Migration Review Tribunal and Refugee Review Tribunal Annual Report 2009-10, p. 11.

31 Migration Review Tribunal and Refugee Review Tribunal Annual Report 2009-10. p. 25.

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Page 8

specialisation can improve the timeliness, quality and consistency of decision-making; increased use of hatching cases with like issues to enhance efficiency; and more regular feedback on performance for members, including closer monitoring of and repotiing on older cases.

32

1.3 8 The tribunals' financial performance for 2009-10 is also discussed in this section of the report. A net loss of $4.6 million was recorded for the financial year. 33

1.39 The report also includes a detailed breakdown of caseload statistics which provides useful background. 34

1.40 The report is attractively presented with good design and a clear and concise style. It closely follows the Requirements for Annual Reports and presents a good account of the year under review. The conunittee considers the report to be 'apparently satisfactory'.

32 Migration Review Tribunal and Refugee R e,∑ iew Tribunal Annual Report 2009-10. p. 25.

33 Migration Re,∑ie w Tribunal and R e.f i1gee Re\'iew Tribunal Annual Report 2009-10. p. 26.

34 M igration Re, " iell' Tribunal and Re.fi1gee Revie11∑ Tribunal Annual Report 2009-10, pp 23-33.

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CHAPTER2

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 the following reports:

" Report to the Attorney-General on the results of inspections of records under s55 of the Surveillance D evices Act 2004, November 2010 (published by the Commonwealth Ombudsman);

" Protection Visa Processing taking more than 90 days for the reporting period 1 March to 30 June 2010 (published by the Department of Immigration and Citizenship);

" Protection Visa Processing taking more than 90 days for the reporting period 1 July to 31 October 2010 (published by the Department of Immigration and Citizenship);

" Report Pursuant to Section 440A of the Migration Act on the conduct of Refugee Review Tribunal review not completed within 90 days for the period 1 March to 30 June 2010 (published by the Department of Immigration and Citizenship) ; and

" Report Pursuant to Section 440A of the Migration Act on the conduct of Refugee Review Tribunal review not completed within 90 days for the period 1 July to 31 October 2010 (published by the Department of Immigration and Citizenship).

Report under the Surveillance Devices Act 2004

2.2 The Surveillance Devices Act 2004 (the Act) regulates the use of surveillance devices by law enforcement agencies.' Subsection 55(1) of the Act requires the Commonwealth Ombudsman to inspect the records of each law enforcement agency to detern1ine the extent of compliance with the Act by the agency and its law

Under subsection 6( 1 ), the tem1 'law enforcement agency' includes the Australian Crime Commission, the Australian Federal Police. the Australian Co mmission for Law Enforcement Integrity. and specified state and territo ry law enforcement agencies. I f any of these agencies utili se the provisions of the Act, the Ombudsman is required to inspect records relating to that use. See fUiiher Commo nwealth Ombudsman , Report to the Attorney-General on the results of ill.Sp ections of records under s 55 of the Sun "ei/l ance D e,∑ices Act 2004. November 2010. p. 1.

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enforcement officers. Under section 61 of the Act, the Ombudsman is required to report to the Minister at six-monthly intervals on the results of each inspection. 2

2.3 The inspections conducted by the Ombudsman were limited to those warrants and authorisations that had expired or been revoked during the inspection periods. 3

2.4 This report relates to inspections of records for the following agencies for the time period indicated:

" Australian Crime Commission (ACC) (1 January 2009 to 30 June 2009);

" Australian Federal Police (AFP) (1 January 2009 to 30 June 2009); and

" Corruption and Crime Commission (WA) (1 July 2008 to 30 June 2009).

2.5 The Ombudsman advised of a number of non-compliance issues which were detected during the inspections and resulted in one recommendation being made with regard to each of the agencies. The Ombudsman also recognised the importance the agencies place on compliance with the Act and their efforts to implement the recommendations made through this process. 4

2.6 The inspection of records for the ACC found that requirements under the Act had not been satisfied in relation to dual applications (the practice of combining applications for surveillance devices and the use of telecommunication intercepts under the Act and the Telecommunication (Interceptions and Access) Act 1979). The

ACC accepted the Ombudsman's findings and is addressing this issue. 5

2. 7 The Ombudsman also raised concerns about the ACC's practice of obtaining new surveillance device warrants to retrieve devices which could have been retrieved under the authority of the original surveillance device warrant or under a retrieval wanant. The ACC did not accept the Ombudsman's position on this issue. 6

2.8 The committee is pleased to note that the Ombudsman noted a high level of compliance with the Act for the AFP. However, concerns were raised with regard to the issue of applications for extensions or variations of a warrant, and the requirement that this can only be done by the original applicant or someone acting on their behalf.

2 Commonwealth Ombud sman , Report to the Attorney-General on the results o.f inspections of records under s 55 of the Surreillance D evices Act 2004, No vember 2010, p. 1.

3 Commonwealth Ombudsman , Report to the Attorney-General on the results of inspections o.f records under s 55 of the Surveillance D evices Act 2004. Nov ember 2010, p. 2.

4 Common w ealth Ombud sman , Report to the Attorney-General on the results of inspections of record<; under s 55 oft he Surveillance D e1∑i ces Act 2004. N ovember 2010, p. 2.

5 Commonwealth Ombud sman. R eport to the Attorney-General on the results of impections of records under s 55 of the Surveillance D evices Act 2004, Nov ember 20 I 0, p. 2.

6 Commonwealth Ombudsman, Report to the Attorney-General on the results of inspections of records under s 55 o.fth e Surveillance D e1'ices Act 2004, November 2010. p. 2.

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In a number of instances , the AFP was found to be non-compliant with this requirement, and is addressing this issue. 7

2.9 The Ombudsman noted that this was the first inspection of records for the WA Corruption and Crime Commission. This inspection involved examination of records relating to one warrant and it was found that 'procedures were well documented and record keeping was of a high standard.' 8 The only issue raised concerned the requirement to report the details of the extension of warrants to the Minister, which did not occur with regard to the warrant. The ACC accepted the Ombudsman's recommendation that future Ministerial reports contain information relating to the extension and variations of a device warrant or authorisation. 9

Protection visa processing taking more than 90 days

2.10 Section 65A of the Migration Act imposes a requirement for the Minister to make a decision on a protection visa application within 90 days of the lodgement of the application. If this target is exceeded, under section 91 Y of the Act, the Secretary of the Department of Immigration and Citizenship is required to report on protection visa applications for which decision making has taken over 90 days. The department is required to report every four months. The reports reviewed by the committee cover the period 1 March to 31 October 2010.

2.11 The table below compares protection visa processing by the department taking more than 90 days for the three previous reporting periods:

1 November 2009 1 March 2010 to 1 July 2010 to to 28 February 30 June 2010 31 October 2010

2010

Total number 789 1147 1561

undecided outside of 90 day period

Total number 623 926 1091

decided outside of 90 day period

Total number 1412 2073 2652

processed outside of 90 day period

7 Common wealth Ombu dsm an. Report to the Attorney-General on the results o.f inspections of records under s 55 of the Surveillan ce D el'i ces A ct 1004. ovember 2010. p. 3.

8 Commonwe alth Ombud sman , Report to the Attorney-General on the results of inspections of records under s 55 of the SwT eillance D evices Act 1004, No vember 2010, p. 3.

9 Comm onwealth Om budsm an. Report to the Attorney-General on the results a_( inspections of records under s 55 of the Sun∑e il/ance D e1∑ices Act 2004. ovemb er 2010. p. 3.

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Percentage of total 24% 35% 43%

applications processed outside of 90 day period

2.12 The committee notes a significant increase in both the total number, and percentage, of protection visa applications processed outside of the 90 day period over the last two repmting periods. The committee also notes that, according to the report , the number of delays attributable to the department has also risen for the last two

. . d 10 reportmg peno s.

Refugee Review Tribunal reviews not completed within 90 days

2.13 Section 440A of the Migration Act requires the Refugee Review Tribunal (RRT) to report on reviews not completed within 90 days. The RRT is required to report every four months. The reports reviewed by the committee covers the period 1 March to 31 October 2010.

2.14 The table below outlines the number of RRT reviews not completed within 90 days for the previous three reporting periods:

1 November 2009 to 28 February 2010

Reviews completed 219 (32%) outside of 90 days

Reviews completed 468 (68%) within 90 days

Total 687

Senator Trish Crossin Chair

1 March 2010 to 30 June 2010

201 (26%)

574 (74%)

775

1 July 2010 to 31 October 2010

190 (23%)

636 (77%)

826

I 0 Protection visa processing tak-ing m ore than 90 days for the reporting period 1 March 1010 to 30 June 1010, page 2 of the lett er of transmittal: Protection visa processing taf..7ng 1110re than 90 days.for the reporting period 1 July 1010 to 31 O ctober 1010, page 2 of the letter of transmittal.

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APPENDIX 1

Reports tabled during the period 1 November 2010 and 30 April2011 and referred to the committee

Department/authority/ Date submitted Date tabled Date tabled to Minister/Date in Senate in the House Operation of an act or program received by (received in of Reps Minister Senate out

of session)

Attorney-General's Portfolio

Department/authority

Aboriginal and ToiTes Strait Islander No legislative 1.3 .11 10.2.11 Social Justice Conunissioner - Native requirement to Title Repoti for 2010 table

Aboriginal and TotTes Strait Islander 21.1.11/21.1.11 1.3.11 10.2.11 Social Justice Commissioner - Social Justice Report for 20 I 0

Audio-Visual Copyright Society Limited 19.1.11119.1.11 9.2.11 9.2.11 (Screenrights)- Report for 2009-10

Australian Crime Commission - Report 19.11.1 0/19.11.1 0 24.11.10 24.11.10 for 2009-10

Au stralian Customs and Border 7.10.10/7.10.10 16.11.10 28.10.10 Protection Service - Repmi for 2009-10

Australian Human Rights Commission - 26.10.10/26.10.10 16.11.1 0 28.10.10 Report for 2009-10

Commonwealth Director of Public 14.10.10/14.10.10 16. 1 1.10 28.10.10 Prosecutions- Report for 2009-10

Commonwealth Ombudsman - Report 26.10.10/26.1 0.1 0 15.11.10 15.11.10 for 2009-10 (1.11.10)

Copyright Agency Limited - Repoti for 16.12.10/16.12.10 9.2.11 9.2.11 2009-10

Insolvency and Trustee Service Au stralia 12.10.10/12.10.10 16.11.10 28.10.10 - Report for 2009-1 0

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Operation of an act or program

Australian Federal Police Act 1979 - No ministerial 9.2.11 9.2.11 Report for 2009-1 0 on the Ombudsman's approval required activities under Part V of the Act to table

Bankruptcy Act 1966 - Report for 2009- 12.10.10112.10.10 16.11.10 28.10.10 1 0 on the operation of the Act

Crimes Act 1914-Authorisations for the 3.2.11 /4.2.11 1.3 .11 24.2.11 acquisition and use of assumed identifies - Australian Customs and Border Protection Service -Report for 2009-1 0

Crimes Act 1914 - Report for 2009-10 on 30.11.10/7.3.11 23.3.11 23.3.11 Ombudsman's activities m monitoring controlled operations conducted by Australian Crime Commission and Australian Federal Police

Criminal Code Act 1995-Control orders 8.10.10/8.10.10 9.2.11 25.11.10 and preventative detention orders -Repmts for 2009-10

National Security li?fonnation (Criminal 8.10.10/8.10.10 9.2.11 25.11.10 and Civil Pro cee ding~ ) Act 2004 - Non-disclosure and witness exclusion certificate s-Repot1 for 2009-10

Surveill ance Devices Act 2004 - 1 .12. 1 0/1.12. 1 0 2.3.11 2.3.11

Commonwealth Ombudsman's repot1 on inspections of surveillance device records for the period 1 January to 30 June 2009 - Australian Crime Commission and Au stralian Federal Police; and Corruption and Crime Commi ssion (WA) for 200 8-09

Sull' eil!ance D evices Act 2004 - Report 22.12.10/22 .12.10 23.3.11 23.3.11 for 2009-1 0 on the operation of the Act

Telecommzmi cations (int erception and 2 1 . 1 2. 1 0/2 1 . 12. 1 0 23.3.11 23.3.11 Acces~ ) Act 19 79 - Repm1 for 2009-1 0

on the operation of the Act

Wa r Crim es Act 1945 - Repot1 for 2009- 1 1.1 0. 10111 .10.10 15.11.10 15.11.10 1 0 on the operation of the A ct (4.11.10)

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Immigration and Citizenship Portfolio

Department/authority

Migration Review Tribunal and Refugee 22.10.10/9.11.10 16.11.10 16.11.1 0 Review Tribunal -Report for 2009-10

Migration Act 1958

Section 4860-Assessment of detention 8 .I I. I 0/9. 1 I. I 0 17.11.10 17.11.10 arrangements - Personal identifiers 600.10 to 610.10 -Commonwealth Ombudsman's reports -Government response to Ombudsman's reports

Section 4860 -Assessment of detention 3.2.11/3.2.11 9.2.11 9.2.11 arrangements- Personal identifiers 6 I 1.1 0 to 619 .I 0 -Commonwealth Ombudsman's repm1s -Government response to Ombudsman's reports

Section 91 Y - Protection visa processing 13.8.10/13.8.10 16.1 I. I 0 16.11.10 taking more than 90 days-Report for the period I March to 30 June 2010

Section 440A - Conduct of the Refugee 13.8.1 0/13.8.10 16.11.10 16. 11.1 0 Review Tribunal reviews not completed within 90 days - Report for I March to 30 June 2010

Section 91 Y - Protection visa processing 4.3.11/7.3.11 22.3.11 22.3.11 taking more than 90 days- Report for the period I July to 31 October 20 I 0

Section 440A - Conduct of the Refugee 4.3.11/7.3.11 22.3.11 22.3.11 Review Tribunal reviews not completed within 90 days - Report for the period 1 July to 31 October 2010

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The Senate

Rural Affairs and Transport Legislation Committee

Annual reports (No. 2 of 2011)

A ugust 201 1

189

©Commonwealth of Australia

ISBN 978-1-74229-510-7

This document was produced from camera-ready copy prepared by the Senate Rural Affairs and Transport Legislation Committee. and printed by the Senate Printing Un it. D epartment of the Senate. Parliament House. Canberra.

II

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Membership of the Committee

Members

Senator Glenn Sterle ALP, Western Australia Chair

Senator the Hon. Bill Heffernan LP , New South Wales Deputy Chair

Senator Alex Gallacher ALP, South Australia

Senator Fiona Nash

Senator Rachel Siewert

Senator Anne Urquhart

NPA, New South Wales

AG, Western Australia

ALP, Tasmania

Participating Members

Senator Abetz Senator Cash Senator Humphries Senator Adams Senator Colbeck Senator Johnston Senator Back Senator Coonan Senator Joyce Senator Bernardi Senator Corn1ann Senator Kroger

Senator Bilyk Senator Crossin Senator Ludlam Senator Senator Di Natale Senator Macdonald Bim1ingham Senator Edwards Senator Madigan Senator Bishop Senator Eggleston Senator McEwen Senator Boswell Senator Faulkner Senator McKenzie

Senator Boyce Senator Fawcett Senator Marshall Senator Brandis Senator Senator Mason

Senator B Brown Fierravanti- Wells Senator Milne Senator C Brown Senator Fifield Senator Moore Senator Bushby Senator Fisher Senator Parry Senator Cameron Senator Furner Senator Payne

Senator Hanson-Young

Ill

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Senator Polley Senator Pratt Senator Rhiannon Senator Ronaldson Senator Ryan Senator Scullion Senator Singh Senator Stephens Senator Thistlethwaite Senator Waters Senator Williams Senator Wright Senator Xenophon

Committee Secretariat

Ms Jeanette Radcliffe , Secreta1y Ms Cassimah Mackay , Research Officer

PO Box 6100 Parliament House Canbena ACT 2600

phone: (02) 6277 351 1 fax: (02) 6277 5811 e-mail: rat.sen({L'aph.!!O\'.au internet: \:vww. aph.!!ov.au/senate rat

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Table of Contents

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

List of Abbreviations ....................................................................................... vii

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

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

Tem1s of reference ...... .... ............ .... ...... ........ .... ............................... ....... ...... .......... 1

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

Requirements ....... .......... ........ ........... ............. .... ................... ......... ........... ...... ........ 2

Reports referred to the committee ................... ...... ......... .......... .......... ....... ...... ....... 2

Reports not exan1ined ....... ........ ...... ..... ....... ..... ....... .......... ....... ...... .................. .... ... 3

Tin1eliness ............. ......... ...... ............... .............. ........ ................ ........ ........ ............. . 4

Comn1ents on reports .................. ..... ............... ..... ...... ....... .............. ..... ..... ..... .... ..... 5

Senate remarks on annual reports .... ....... ....... .... .......... .... ........ ....... ............. ......... lO

Comment on significant matters .... ....... ............. ... ........ ...... ....... ..... ... ..... ......... ..... 10

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

Annual reports of agencies ..................... ........................ ....................................... 11

Agriculture , Fisheries and Forestry portfolio ................... ...... ...... .... ....... ...... ....... 11

Commonwealth authmities .......... ........ ..... .......... ....... ...... ........ ......... ...... .............. 11

Prescribed agencies ... ............. .... ...... .... ..... ........ .... ........... .............. ............ ........... 16

Infrastructure , Transport , Regional Development and Local Governn1ent portfolio ......... ............. ...... ................ ......... ............. ........ ......... ........ ..... ... ....... .... .. 18

Commonwealth authorities ..... ....... ............. ..... ................. ....... ..... ................ ...... .. 18

Commonwealth companies ...... ....... ........ .............. .... ........ ...... .... ........... ..... ..... .... 19

Appendix 1 ................................................................ ......................................... 21

List of annual reports referred to the committee during the period 1 November 2009 to 30 April 2010 .............................................................................................. 21

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Agriculture, Fisheries and Forestry portfolio ....... ........ .......... ... ... ...... ... ...... ......... 21

Infrastructure, Transport, Regional Development and Local Government portfolio (from 14 September 2010, !J1ji-a structure and Transport portfolio ) ..... 24

V I

194

List of Abbreviations

AFMA Australian Fisheries Management Authority

ALC Australian Landcare Council

ANAO Australian National Audit Office

APVMA Australian Pesticides and Veterinary Medicines Authority

CAC Act Commonwealth Authorities and Companies Act 1997

CAC Orders Commonwealth Authorities and Companies (Report of Op erations) Orders 2005

CASA Civil Aviation Safety Authority

CEO Chief Executive Officer

COAG Council of Australian Governments'

CRDC Cotton Research and Development Corporation

DAFF Department of Agriculture, Fisheries and Forestry

EC Exceptional Circumstances

EPBC Act Environment Protection and Biodiversity Conservation Act 1999

FMA Act Financial Management and Accountabili ty Act 1997

FOI Act Freedom of h?formation Act 1982

FRDC Fisheries Research and Development Corporation

GRDC Grains Research and Development Corporation

GWRDC Grape and Wine Research and Development Corporation

ICT Infom1ation and Communication Technology

IMG lnigati on Management Grant

Infrastructure Department of Infrastructure, Transport, Regional Development and Local G overnment

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K.Pis Key Performance Indicators

OH&S Act O ccupational H ealth & Safety (Commomt~ "ea l t h Employment) Act 1991

PAES Portfolio Additional Estimates Statements

PBS Portfolio Budget Statements

PIERD Act Primm y Industries and Energy Research and Development Act 1989

R&D Research and development

RD&E Research, development and extension

Requirements for Requirem ents for Annual Reports for D epartments, Executive Annual Reports Agencies and FMA Act Bodies

SRDC Sugar Research and Development Corporation

Strategy Commonwealth Disability Strategy

WEA Wheat Export Authority

V III

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Chapter 1

Overview

1.1 The committee is responsible for examining the annual reports of departments and agencies within two pot1folios:

" Agriculture, Fisheries and Forestry; and

" Infrastructure and Transport.

Terms of reference

1.2 Under Senate Standing Order 25(20), annual reports of departments and agencies shall stand refetTed 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 presentati on 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 detem1ines, consider annual reports of depat1ments 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 rep011s tabled by 30 Aptil each year by the tenth sitting day after 30 June of that year;

(g) draw to the attention of the Senate any significant matters relatin g to the operations and perfom1ance of the bodies fumishing 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 w hich should present such reports.'

Standing orders and other orders of the Senate, June 2009. p. 28. (This Standing Order wa amended 24 August 1994, 13 February 1997. 1 1 November 1998. 3 December 1998. 13 February 2002. 19 ovember 2002. 14 August 2006: with effect from 11 September 2006. 13 May 2009: with effect on 14 May 2009).

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2

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 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.

Requirements

1.4 Annual reports are examined by the committee 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, Department of Prime Minister and Cabinet, updated June 2010

and approved by the Joint Committee of Public Accounts and Audit on 23 June 201 0;

" for Commonwealth authorities and companies: the Commonwealth Authorities and Companies Act 1997 (the CAC Act), sections 9, 36 and 48, and the Commonwealth Authorities and Companies (Report of Operations) Orders 2008 (CAC Orders); and

" for non-statutory bodies: the requirements are contained in the Government response to the report of the Senate Standing Committee on Finance and Govemment Operations on Non-statutory bodies, Senate Hansard, 8 December 1987, pp 2643-45.

Reports referred to the committee

1.5 Standing Order 25(20)(£) requires the committee to report on annual reports tabled by 30 April each year by the tenth sitting day after 30 June of that year. This year, that date is 24 August 2011. The committee is also required to report on annual reports tabled by 31 October each year by the tenth sitting day of the following year.

1.6 This report considers annual reports which were tabled in the Senate or presented to the President of the Senate between 1 November 2010 and 30 April2011. It includes annual reports submitted to the Minister before 31 October 2010, but tabled after that date and therefore not considered as part of the conunittee's report Annual reports (No. I of2011).

1. 7 The conunittee examined 12 annual reports of agencies within the Agriculture, Fisheries and Forestry portfolio and two annual reports of agencies within the Infrastructure and Transport portfolio , as follows:

198

3

" Australian Fisheries Management Authority-Report for 2009-l 0;

" Australian Landcare Council-Report for 2009-1 0;

" Australian Pesticides and Veterinary Medicines Authority-Report for 2009-1 0;

" Australian Livestock Export Corporation (LiveCorp )-Report for 2009-1 o∑ '

" Cotton Research and Development Corporation-Report for 2009-1 0;

" Dairy Australia-Report for 2009-l 0

" Fisheries Research and Development Corporation-Repott for 2009-l 0;

" Grains Research and Development Corporation-Report for 2009-l 0;

" Grape and Wine Research and Development Corporation-Report for 2009-10;

" National Rural Advisory Council-Report for 2009-1 0;

" Sugar Research and Development Corporation-Report for 2009-l 0;

" Torres Strait Protected Zone Joint Authority - Report for 2008-09;

" Wheat Export Authority-Report for 2009-l 0;

" Airservices Australia-Report for 2009-10; and

" Civil Aviation Safety Authority-Report for 2009-10.

1.8 A complete list of reports referred to the committee (including those not examined) appears at Appendix 1.

Reports not examined

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

" Airservices Australia - Corporate Plan 1 July 2010 to 30 June 2015;

" Airservices Australia - National Equity and Diversity Program 2007-1 0-Progress Report 2009-l 0;

" Australian M eat and Live-stock Indust1y Act 1997-Live-stock mortalities during exports by sea- Report for the period 1 January to 30 June 201 0;

" Australian Rail Track Corporation Ltd- Statement of corporate intent 2010-11;

" National Residue Survey-Report for 2009-l 0;

" Sydney Ai1port D emand .Managem ent Act 1997--Quatterly report on the maximum m ovement limit for Sydney Airpott for the period I April to 30 June 201 0; and

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4

" Sydney Ailport D ema nd Management Act 1997---Quarterly report on the maximum movement limit for Sydney Airport for the period 1 July to 30 September 2010.

Timeliness

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

1.11 As stated in the Requirements for Annual Reports for D epartments, Executive Agencies and FMA Act Bodies (Requirements for Annual Reports), 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 C AC Act are required to provide their annual reports to the Minister by the 151h day of the fourth month after the end of the financial year. 3 Where the financial year ends on 30 June, this deadline translates to 15 October.

1.12 As noted in the committee's report Annual reports (No. 1 of 2011), a number of annual reports were tabled in the Senate after the appropriate deadlines and will be examined in this report.4

1.13 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 Torres Strait Protected Zone Joint Authority " Report for 2008-09.

Comments on reports

1.14 Under Standing Order 25(20)(a) the committee is required to scrutinise annual reports and inform the Senate as to whether they are 'apparently satisfact ory'. To form this assessment the conm1ittee examines whether annual reports comply with the statutory reporting guidelines relevant to each particular report.

1.15 The conm1ittee considers that the reports examined are generally 'apparently satisfactory' , although some do not comprehensively address all of their legislati ve requirements . While any divergence from these requirements is mostly minor in nature, the committee encourages agencies to pay particular attention to the matters discussed below.

2 Depat1ment of Prime Minister and Cabinet. Requirem ents for Annual Reports for D epartments, Executive Agencies and FM4 Act Bodies. June 2010, p. 2.

3 Commonw ealth Authoriti es and Co mpanies Act 1997. s. 9.

4 Senate Rural Affairs and Transport Legislation Committee. Annual reports (No. 1 of 2011). March 201 L p. 4.

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5

Aids to Access: Indexes

Compliance indexes

1.16 Compliance indexes greatly facilitate the committee's task of ensuring adherence to reporting requirements, and also assist agencies to demonstrate that all legislative obligations have been met.

1.17 The committee found that some compliance indexes were more useful than others. A number of compliance indexes did not address all of the reporting requirements and, in some cases, the page references given in the compliance indexes were incorrect or too broad to be useful.

1.18 The committee commends those agencies which included compliance indexes for each piece of legislation they are required to report under, and notes that the compliance indexes of the Cotton Research and Development Corporation (CRDC), the Australian Pesticides and Veterinary Medicines Authority (APVMA) and the Grape and Wine Research and Development Corporation (GWRDC) reports were exemplary.

Legislative requirements for Commonwealth authorities

1.19 The committee draws attention to section 17 of the CAC Orders which notes that the annual reports of Commonwealth authorities must include certain matters required by the relevant sections of the following legislation :5

" Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) section 516A ;

" Freedom ofb~formation Act 1982 (FOI Act) subsection 8(1); and

" Occupational Health and Safety (CommOin ,vealth Employment) Act 1991 (OH&S Act) section 74.

1.20 The committee encourages agencies to look carefully at the reporting requirements under these pieces of legislation when compiling upcoming reports . These requirements also apply to departments, executive agencies and FMA Act bodies, as specified in the Requirements for Annual Repot1s.6

1.21 The committee reminds agencies that they are required to report on all five requirements under subsection 516A(6) of the EPBC Act, as exemplified in the Cotton Research and Development Corporation report. Several agencies failed to include infom1ation required under paragraphs 516A( 6)( c) and (e) of the EPBC Act, in relation to documenting the effect of activities on the environn1ent and mechanisms

5 Commoml'ealth Authorities and Compani es (Report of Op erations) Orders 2005. s. 17.

6 Department of Prime Minister and Cabinet, Requirements for Annual Reports.for D epartments. Erecuti1∑e Agencies and FMA Act Bodies. June 2010, pp 15 and 21-25.

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6

for reviewing and improving these measures. The committee encourages agencies to address these requirements in more detail in future and recommends agencies familiarise themselves with the Guidelines for Section 516A reporting .7

1.22 The committee notes that several agencies did not adequately address all requirements under subsection 8(1) of the FOI Act. In particular , the committee observes that a number of bodies omitted to provide information on arrangements that exist for others to participate in the agency's policy formulation process. The committee notes that Airservices Australia, Australian Fisheries Management Authority (AFMA) and the Grains Research and Development Corporation (GRDC) addressed the FOI requirements comprehensively.

1.23 Omissions were again noted in some agencies' attempts to report against the OH&S Act, particularly in relation to information about health and safety management arrangements under paragraph 74(1)(c). The committee considers that the Australian Pesticides and Veterinary Medicines Authority (APVMA) and the Wheat Exports Authority (WEA) annual reports provide good examples of how OH&S requirements should be addressed.

Commm1wea/th Disability Strategy

1.24 Under the Requirements for Annual Reports and section 18 of the CAC Orders, an assessment of an agency's performance in implementing the C01mnonwealth Disability Strategy (the Strategy) must be provided in accordance with the tem1s set out in the Guide to the Perfom1ance Reporting Framework.

8

The

committee again observed significant variation in the level of detail provided regarding compliance with the Strategy. The committee strongly encourages agencies to assess compliance in accordance with the recommended guide in future reports. The c01mnittee considers that AFMA has addressed this requirement to a high standard.

Reviews by outside bodies

1.25 The committee notes that the Australian Governm ent commissioned a Productivity Commission inquiry into rural research and development corporation arrangements during 2009-10. As the final report for this inquiry was released on 15 June 2011, the committee encourages each relevant R&D bodies to engage with the

7 This guide can be accessed at http :1/ww\\ .en vi ron ment. !!O\ .au/epbclpu b I i cati ons/pu bs/repo11i n g -£u ide I in es. pdf.

8 Department of Prime Minister and Cabinet. Requirem ents for Annual Reports for D epartm ents. Executive Agencies and FMA Act Bodies. June 2010, p. 14: and Commollll'ealth Authorit ies and Co mpanies (Report ofOperations) Orders 2005. s. 18. This Guide can be accessed on the Commo nwea lth Disability Strategy website at http://w\\\\ .facs.go\∑ .au/cds.

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Productivity Commission's findings, and their relevance to operations m its next 9

mmual report.

9 See ProductiYity Commission, Rural Research and Development Corporations. Productivity Commiss ion Inquiry Report No. 52. I 0 February 2011.

203

204

Chapter 2

Annual reports of agencies

2.1 The committee considered all of the following reports to be 'apparently satisfactory'.

Agriculture, Fisheries and Forestry portfolio

Commonwealth authorities

Cotton Research and Development Cmporation.

2.2 The committee conunends the CRDC for consistently producing a clear , concise and well constructed annual report. The compliance index greatly assisted the committee in determining whether reporting requirements had been met. The committee finds that the CRDC's report was aided by the use of helpful graphs and tables where appropriate.

2.3 The committee notes that the CRDC has again improved its reporting under the EPBC Act, however, its reporting under the FOI and OH&S Acts could be improved. Reporting under the FOI Act did not provide the initial contact details for members of the public and reporting for the OHS Act did not include details of the selection of OH&S representatives. 1

2.4 The CRDC's reporting under the Commonwealth Disability Strategy did not contain details of any assessments of performance in in1plementing the Strategy, nor did it contain information on consultation with people with a disability, or details of infom1ation provided in accessible formats. 2

2.5 The committee notes that 2009-10 was the first year the CRDC acted as the managing agent role for the National Program for Sustainable Irrigation , which the CRDC states 'had a significant impact on the Corporation[ sic] operations'. The conunittee also notes, however, that as the role was fom1alised in September 2009, further details are not included in the annual report for 2009-10.3

2.6 The CRDC reported a net surplus of $0.235 million for 2009-10, against a budgeted deficit of $1 .030 million. The CRDC attributes this result as the outcome of the CRDC's management response to the effect of drought on forecast revenue, fewer

C otton Research and Development C orporation.Annual R eport 1009-10. pp 107-109.

1 Cotton Research and D evelopment Corporation. Annual Report 1009-10. p I 07.

3 Cotton Research and Development Corporation. Annual Report 1009-10. p 107.

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10

research applications funded, and higher than expected project refunds from underspent research grants. 4

Grains Research and Development Corporation

2. 7 The committee found the GRDC's report to be, overall, well presented and informative , consistent with the standard of previous reports. The report contained a useful compliance index, however, some items, such as factors , events or trends influencing performance over the fmancial year, were not listed in the compliance index. The committee recommends that if these requirements were not applicable, it would be useful to record a nil entry or 'not applicable' where the GRDC has nothing to report against an item.

2.8 The GRDC's reporting under the EPBC, FOI and OH&S Acts was of a high standard, however, the committee reminds the GRDC that reporting under the OH&S Act should include statistics of any accidents or dangerous instances, as well as details of any investigations , or a statement to indicate a nil entry where appropriate. 5

2.9 The GRDC included a concise summaty of highlights of 2009-10, including the successes and challenges faced. The committee notes that the GRDC regarded 2009-10 as a challenging year, with seasonal conditions affecting much of the grain belt, as well as prices being negatively impacted by the high value of the Australian dollar. 6

Grape and Wine Research and Development Corporation

2.10 The committee is pleased to note that following comments made in the committee's previous reports, the GWRDC has again provided a comprehensive and easy to use compliance index. The committee again notes, however, that while not mand atory, its annual report would benefit from the inclusion of an alphabetical index.

2.11 The committee notes that the GWRDC's reporting on legislative requirements needs improvement. The EPBC Act did not have its own section in the report, and did not include documentation showing the effect of activities on the environment, nor did it include mechanisms for reviewing or improving the measures taken. 7

2.12 Reporting on the FOT Act did not include arrangements for participation in the fomml ation of policy or detail s on facilities provided to enable physical access, or details on FOI procedures. It did, however, include procedures and the initial contact for inquiri es.8

4 Cotton Research and Development Corporation. Annual Report 1009-10. pp 2-3 and 31.

5 Grains Research and Development Corporation. Annual Report 1009-10. pp 104-108.

6 Grains Research and Development Corporation. Annual Report 2009-/0. pp i-iii and 8.

7 Grape and Wine Research and Development Corporation. Annual Report 1009-/0. pp 42-43.

8 Grape and Win e Research and Development Corporation. Annual Report 1009-10. p. 44.

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II

2.13 GWRDC's reporting on the OH&S Act also needs improvement. The committee reminds the GWRDC it needs to include details on OH&S representatives and any agreements in place. Information on the Commonwealth Disability Strategy stated that it is committed to the Strategy but does not provide any further information. The committee strongly encourages the GWRDC to assess its compliance in accordance with the Guide to the Performance Reporting Framework for future reports.

9

2.14 The GWRDC reported it will be developing a five year plan, to be implemented in July 2012. As part of the development, reviews of research portfolios are taking place. These range from formal, large-scale cost-benefit analyses, to reviews of specific R&D providers and their outputs. The results of these reviews will enable the GWRDC Board to set priorities for the new research plan, based on evidence provided about particular research programs and the value expected to be derived from each program.

10

Fisheries Research and Development Cmporation

2.15 The committee is pleased to observe that the FRDC has again provided a thorough and easy to navigate compliance index, which is more closely aligned with the reporting requirements as set out in the CAC Act, the CAC Orders and the PIERD Act. The committee notes that the report is visually impressi ve, with a helpful and clear layout provided throughout the report. Howe ver, the committee is concerned that a number of items listed in the compliance index, including 'significant changes in the state of affairs' and 'joint ventures and collaborations' either do not appear on the pages listed in the compliance index or appear under differ ent headings, complicating

the assessment of compliance.

2.16 The FRDC reported its key performance indicators, clearly stating 'achieved' where relevant. The committee notes, however, that further assessment on the effectiveness of operati ons could also be included. 11

2.17 The committee is pleased with the FRDC's standard of reporting against the EPBC Act, however, reporting on the FOI and OH&S Acts and the Conm1onwealth Disability Strategy needs improvem ent. Reporting on the FOI Act does not provide information on the initi al contact for FOI requests, and the infom1ation on arrangements for bodies or persons outside the Comm onwealth to participate in the

fommlation of policy is provided as a link to a w ebsite.12 The OH&S section does not

9 This guide can be accessed on the Commonwea lth Disabilit y Strate gy website at http://www. fahcsi a. !!OV .a u/sa/di sabi I i t v /pubs/poI iC\∑ ,'Docu ments/ cds/ !!U i de/defa u It. htm.

10 Grape and Wine Research and Development Corporation, Annual Report 1009-10, pp 4-5.

Il See for example, Fisheries Research and De velopme nt Corporation, Annual Report 1009-10, p. 26.

I2 Fisheries Research and Development Corporation, Annual Report 1009-10. p. 157.

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list any information on OH&S representatives and their selection. 13 Reporting on the Commonwealth Disability Strategy does not provide an assessment of performance, nor does it include information provided in accessible formats or any complaints or grievance mechanisms. It does, however, include a statement on the consultation that takes place as part of its policies and practices. 14

2.18 In fulfilling its reporting requirement to list significant events following the end of the financial year, the FRDC reported that after three years of service, Mr Peter Neville retired as chair, and in September 2010, the Hon Harry Woods was appointed as chair. 15

2.19 The committee notes that in 2010, the FRDC's National Fishing and Aquaculture RD&E Strategy 2010 and its Research, Development and Extension Plan for 2010-2015 were both approved. The RD&E Strategy aims to 'improve the focus, efficiency and effectiveness of RD&E to supp011 Australia's fishing and aquaculture industry' , while the 2010-15 RD&E Plan articulates FRDC's research programs and themes, developed in parallel to the RD&E strategy. 16

Sugar Research and Development Cmporation

2.20 The committee is disappointed to find that the SRDC has again provided an incomplete compliance index. The committee reminds the SRDC that its annual report would benefit from a compliance index that more closely reflects the CAC Orders, including a 'not applicable' listing to items rather than not including them in the index. Separate sections for compliance under the CAC Act and the PIERD Act are also recommended.

2.21 The SRDC reported that a Price Waterhouse Coopers evaluation into project performance and value of investment in 2009-10 found that the top three benefits arising from the SRDC's investments were improved decision making, reduced on " farm costs and improved communication. The comm itt ee notes that the evaluation also confim1ed that most benefits occurred in the longer tem1, that is, greater than 15 years. 17

Prescribed agencies

Australian Fisheries Management Authority

2.22 The committee again commends AFMA on its consistently high standard of reporting. The repm1 included a detailed , well set out compliance index with separate

13 Fisheries Research and Development Corporation. Annual Report1009-10. pp 83-84.

14 Fisheries Research and Development Corporation , Annual Report1009-JO, p. 85.

15 Fisheries Research and Development Corporation. Annual Report1009-10, p. 6.

16 Fisheries Research and Development Corporation. Annual Report1009-10. p. 4-5.

17 Sugar Research and D evelopment Corporation. Annual Report 1009-10. p. 32.

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13

sections for compliance under the FMA Act, however, the committee is disappointed to find that unlike previous reports, it does not contain a separate section for compliance under the Fisheries Administration Act 1991 (AFMA's enabling legislation).

18

2.23 AFMA reported an operating loss of $3.2 million for 2009-10, which it notes was within budget expectations and reflected a reduction in levy collections and continued investment in key business improvement projects from surplus cash reserves. AFMA also reported that it is budgeting for an operating loss of $1.5 million for the 2010-11 fmancial year, which it is attributing to the completion of the investment in key business improvement projects. The committee notes that AFMA expects to reduce its departmental expenditure by $3 million (seven per cent) over the next two years, which will return it to a balanced budget and also achieve the savings required for whole-of-government efficiencies. 19

2.24 AFMA has provided a comprehensive and well presented section detailing judicial decisions and decisions of administrative tribunals. The committee notes that of the seven matters reported, two were upheld, one was settled, one was dismissed and three remained ongoing at the time of the report.

20

2.25 The committee notes an improvement in reporting against services and deliverables with helpful tables , including a column for the predicted figures for 2009-1 0, however, there is no assessment of effectiveness provided, and no statement as to whether or not key performance indicators have been historically met, as noted in the Requirements for Annual Reports. 2 1

2.26 Once again, the committee commends AFMA for its high standard of reporting under the FOI, EPBC and OH&S Acts, as well as its repm1ing of performance on the Commonwealth Disability Strategy . 22

Australian Pesticides and Veterinmy Medicines Authority

2.27 The committee is pleased to note that following comments made in previous reports , the APVMA has improved its compliance index by listing matters as 'not applicable' where appropriate. The following items, however, were either incorrectly listed or were listed but did not contain page numbers:

18 Au strali an Fisheries M anagement Authorit y, Annual R eport 2009-10, pp 162-164.

19 Au strali an Fisheries Man agem ent Authorit y, Annual R eport 2009-10. p. 3.

20 Au stralian Fisheries M anagement A uthorit y. Annual Report 2009-10. pp 132-133.

21 A ustrali an Fisheries Managem ent Authorit y, Annual R eport 2009-10. pp 29-33; Department of Prime Minister and Cabinet. Requirem ents for Annual Reports for Departments. E.~: ec u r h ∑e Agencies and FMA Act Bodies. June 2010, p. 10

22 Au stralian Fisheries Man agement Authorit y. Annual R eport 2009-10. pp 51-52. 150 and 151-156.

?no

14

" alphabetical index;

" training and development undertaken; and

" salary ranges available by classification.

2.28 The committee does not consider that these errors hindered the committee's ability to assess the APVMA's compliance.

2.29 The committee found the APVMA's reporting on the management of human resources to be thorough and well structured, in particular , its reporting on its assessment of effectiveness in managing and developing human resources to achieve obj ectives. 23

2.30 The committee notes, however, that in reporting the salary ranges available by classification level, SES remuneration was not contained in the same section. It would be helpful if such infom1ation were co-located, or gave clear page numbers pointing to where it is in the report. 24 The committee also notes that reporting on perfom1ance pay could be improved, as it did not contain the aggregated amount at each level or the average of bonus payments at each level.25

2.31 The APVMA reported the launch of a new website in November 2009, which it notes is one of several strategies to build and strengthen stakeholder relationships as well as providing targeted and accessible information . The committee notes that the APVMA highlights increased communication and awareness as an ongoing activity. 26

Wheat Exports Australia

2.32 Overall the committee found WEA's report to be info1111ative and well presented. The committee notes a vast improvement in the compliance index, which greatly assisted the committee in assessing WEA's compliance.

2.33 The committee appreciates WEA's reporting on perfom1ance and its helpful use of tables , however, the committee reminds WEA that it is a requirement to include a statement noting if the key performance indicators have been historically met, with a suggested time frame of three years. 27

23 Australian Pesticide s and Veterinary Medicines Authority, Annual Report 1009-10. pp 72-80.

24 Australian Pesticides and Veterinary Medicines Authority, Annual Report 1009-10. pp 74 and 143.

25 Department of Prime Minister and Cabinet. R equirem ents for Annual Reports for D epartments. Executive Agencies and FM4 Act Bodies. June 2010. p. 11.

26 Australian Pesticides and Veterinary Medicines Authority. Annual Report 1009-10. pp 2-3.

27 Wheat Expor1s Australia. Annual Report 1009-10. pp 12-22 and 129-135; Department of Prime Minister and Cabinet. Requirements for Annual Reportsfo r Departmems. Executi\ " e Agencies and FMA Act Bodies. June 2010, pp 6-7.

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2.34 The committee commends WEA's reporting on its management of human resources, in particular its assessment of effectiveness in managing and developing human resources to achieve objectives, as well as the training and development undertaken, including its impact. 28 The committee notes, however, that while statistics on staffing were provided in a well-presented format, they did not include specifics on gender or location , as noted in the Requirements for Annual Reports. 29

2.35 The committee is pleased to note a strong improvement in WEA's reporting under the Commonwealth Disability Strategy. The committee reminds WEA that reporting under the Strategy should also include details on any complaints or grievance mechanisms. WEA's reporting under the FOI and OH&S Acts was also of a high standard . 30

2.36 WEA notes the Productivity Commission's report into Wheat Export Marketing Arrangements took place in 2009-10, however, the committee notes that the final report was not publicly available at the time of the annual report. 3 1

Infrastructure and Transport portfolio

Commonwealth authorities

Airservices Australia

2.37 The committee notes that while some items in the compliance index were not listed , for example, the Auditor General's Report, it is a vast improvement from previous annual reports.

2.38 The committee again commends Airservices Australia on its thorough reporting under the EPBC , FOI and OH&S Acts. The committee notes, however, that reporting under the Commonwealth Disability Strategy did not include an assessment on its perfom1ance in implementing the Strategy , nor did it include details on consultation with people with a disability or information on any complaints or grievances mechanisms. The conmlittee therefore considers reporting under the Commonwealth Disability StTategy could be improved.32

2.39 Airservices Au stralia reported that implementation of its $900 million capital expenditure program has been a major focus for 2009-10. This has involved the upgrading and replacement of air traffic contTol towers and aviation fire stations. New navigation aid technology has been introduced, while assets that needed replacing

28 Wh eat Exports Au strali a, Annual Report 2009-10. pp 25-26.

29 Dep a11m ent of Prime M inister and Cabinet. Requirem ents for Annual Reports for D epartm ents. Executive Agencies and FMA Act Bodies. June 2010. p. 10.

30 Wh eat Exports Au strali a, Annual Report 2009-10. pp 112-116.

31 Wh eat Exports Au stralia. Annual Report 2009-10. p. 9.

32 A irservices Au stralia. Annual Report2009-JO. pp 101- 109.

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were also updated. The committee notes that this program will be a key focus for the next five years. 33

2.40 In fulfilling its requirements to report on significant changes during the financial year, Airservices Australia reported that the committee's report into the effectiveness of Airservices' management of aircraft noise is currently being considered by the Government. The committee also notes that in developments since the end of the financial year, the Minister announced the appointment of the Aircraft Noise Ombudsman , which commenced in September 2010.

34

Civil Aviation Safety Authority

2.41 The committee is again pleased to fmd that CASA has fulfilled its reporting requirements to a high standard. The report is clear, well structured and easy to read. It provides a thorough review of CASA's functions , activities and outcomes for 2009-10, including comprehensive reporting under the FOI, OH&S and Commonwealth

Electoral Acts.

2.42 The conm1ittee notes that the tem1s of reference for the Industry Complaints Commissioner (ICC) were refined and clarified in 2009-10. CASA reported that the ICC received 94 complaints about CASA actions, decisions and service, 295 complaints about the aviation industry and 31 requests for infom1ation about the aviation industry and safety. The committee notes that this is an increase of 22 per cent for complaints from the previous year, but that CASA attributes this rise with an increase in promotion of the role. 35

2.43 CASA reported that in 2009-10 the Conm10nwealth Ombudsman investigated 1 0 complaints about CASA. The complaints ranged from problems with procurement processes , professional development requirements and the processing of medical assessments . The committee notes that CASA did not detail the outcomes in its annual report, and that at the time of the annual report, four of these matters remained open.

2.44 The conm1ittee notes that CASA has replaced the General Aviation Aerodrome Procedures with the internationally recognised Class D Airspace Procedures. The replacement involved widespread consultation with stakeholders and is a 'step towards standardising Australian aviation procedures with the International Civil Aviation Organization's Class D airspace classification'. CASA highlighted tlus as especially important , with the increase in overseas student training at these aerodromes. 36

33 Airservices Australia. Annual Reporr 2009-10. pp 2-3.

34 Airservices Australia. Annual Report 2009-10. pp 16-17.

35 Civil Aviation Safety Authority. Annual Report 2009-10. pp 72-73.

36 C ivil Aviation Safety Authority. Annual Report 2009-10. p. 30.

212

Senator Glenn Sterle Chair

213

17

214

Appendix 1

List of annual reports referred to the committee during the period 1 November 2010 to 30 April2011

Agriculture, Fisheries and Forestry portfolio

Legislation Letter of Date sent Date

transmittal to received by

date Minister Minister

I Commonwealth authorities

Cotton Research and PIERD Act 1989 01110/10 15/10110 15/10/10

Development Corporation -Report for 2009-1 0 CAC Act 1997

Fisheries Research and PIERD Act 1989 21/08/10 21/10/10 08111/10

Development Corporation -Rep01t for 2009-1 0 CAC Act 1997

I

!

j Grains Research and P!ERD Act 1989 15110110 15110110 1511 0110

I Development Corporation -CAC Act 1997 Rep01t for 2009-1 0

Grape and Wine Research and PJERD A ct 1989 27/09/10 13/10/10 13110110

Development Corporation-Report for 2009-1 0 CAC Act 1997

Sugar Research and Development PIERD Act 1989 30/09/10 21110/10 08/11110 Corporation - Report for 2009-10 CAC Act 1997

Prescribed agencies

Australian Fisheries Management Fisheries 0511011 0 5/10/10 6/10110

A uthority - Repott for 2009-10 Administratio n Act 1991

FMA Acr 1997

Australian Pesticides and Agricultural and 05110/10 22/09/10 23/09110 Veterinary Medicines Authority - V cteri nary Repott for 2009-1 0 Ch emicals

(Admin isr rar ion) Acr 1992

FMA Acr 1997

215

Tabling date*

24/11110

09/02/11 *

(received 01/1211 0)

16/11110

16111110

09/02111 *

(received 01112/1 0)

16111/10

16/11110

20

Wheat Exports Authority-Report Wheat E\port 3111 Oil 0 31110/10 03/11110 09/02111 for 2009-10 Marketing Act 2008

FMA Act 1997

Other

Australian Landcare Council- Natural Resources 05111/10 25/11110 09/02/11 *

Report for 2009-10 Managem ent

(Financial (received

Assistance) Act 15112110)

1992

Australian Livestock Export Australian Meat 19110/10 19/10110 17111/10

Corporation (LiveCorp)- Report and Live-stock for 2009-10 lndust1y Act 1997

Coi]Jorations Act 2001

Australian Meat and Live-sto ck Australian Meat n/a 23/09/10 23/09/10 16/11110

Industry Act 1997-Live-stock and Live-stock mortalities during exports by Industl) l Act 1997 sea- Report for the period I January to 30 June 2010

Dairy Australia Limited-Report Dairr Produce Act 22/10/10 17/11/10 23/1 1/10

for 2009-10 1986

Co1porations Act 2001

National Residue Survey-Repmt National Residue 09111/10 10111/10 09/02111 *

for 2009-10 Survey

Administration Act (received

1992 30/11/10)

National Rural Advisory Rural Adjustment 18110110 19/10/10 09/02/11 *

Council- Report for 2009-10 Act 1992

(received 2111211 0)

Torres Strait Protected Zone Torres Strait 21/06/11

Authority- Report for 2008-09 Fisheries Act 1984

* An asterisk denotes reports presented to the President out -of-session .

216

21

Infrastructure and Transport portfolio

Legislation Letter of Date sent Date Tabling

transmittal to received by date*

date Minister Minister

Commonwealth authorities

Airservices Australia-Report for Air Services Act 15/10/10 15/10/10 15/10/10 16111/10 2009-10 1995

CAC Act 1997

C ivil Aviation Safety Authority- Civil Aviation Act 24/09/10 28/09/10 28/09/10 15/11/10* Report for 2009-1 0 1988

(received

CAC Act 1997 01/11110

Other I

A irservices Australia-Corporate Air Services Act 18111/10 13/09/10 13/09/10 09/02/11 * Plan 1 July 2010 to 30 June 2015 1995 (received CAC Act 1997 15/12/10)

I Airservices Australia-National Equal Employment n/a 30/09110 30/09/10 23/11/10

Equity and Diversity Program Opportunity J 2007-1 0-Progress Report 2009- (Commom vea !th

jiO Authorities) Act

I 1987

I Australia Rail Track Corporation C01porations Act n/a 17/06110 23/06/10 23/11/10

Ltd- Statement of Corporate 2001 Intent 2010-11

S\'dne\' Ailport D emand Sydney Airport n/a 28/07110 02/08110 2311 Ill 0

I .\.lanagement Act 1997- Demand

Quarterly report on the maximum Management Act movement limit for Sydney 1997

Airpor1 for the period 1 April to 30 June 2010

I

1 Sydney Ai1port D emand Sydney Ailport n/a 28110/10 01/11/10 23/11/10

1 .\Ianagement Act 1997- Demand

Quar1erly report on the maximum Management Act moveme nt limit for Sydney 1997

Airport for the period 1 July to 30 September 2010

* An asterisk denotes reports presented to the President out-of-session.

217

THE PARLIAMENT OF THE

COMMONWEALTH OF AUSTRALIA

PARLIAMENTARY PAPER No. 191 of 2011 ORDERED TO BE PRINTED

ISSN 0727 -4181