Title Senate Legislative and General Purpose Standing Committees Consolidated reports on Budget estimates 2013-2014
Source Senate
Date 31-12-2013
Parliament No. 44
Tabled in Senate 31-12-2013
Parliamentary Paper Year 2013
Parliamentary Paper No. 481
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Senate Legislative and General Purpose Standing Committees Consolidated reports on Budget estimates 2013-2014

Australian Senate

Senate Legislation Committees

Reports on Budget estimates 2013-14

June 2013

© Parliament of the Commonwealth of Australia 2013

ISSN 1834-4038

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

TABLE OF CONTENTS

Resolutions of the Senate relating to estimates ......................................................i

Community Affairs Committee

• Budget estimates 2013-14 report, dated June 2013 ........................................... 1

Economics Committee

• Budget estimates 2013-14 report, dated June 2013 ......................................... 53

Education, Employment and Workplace Relations Committee

• Budget estimates 2013-14 report, dated June 2013 ......................................... 89

Environment and Communications Committee

• Budget estimates 2013-14 report, dated June 2013 ....................................... 117

Finance and Public Administration Committee

• Budget estimates 2013-14 report, dated June 2013 ....................................... 141

Foreign Affairs, Defence and Trade Committee

• Budget estimates 2013-14 report, dated June 2013 ....................................... 165

Legal and Constitutional Affairs Committee

• Budget estimates 2013-14 report, dated June 2013 ....................................... 189

Rural and Regional Affairs and Transport Committee

• Budget estimates 2013-14 report, dated June 2013 ....................................... 219

RESOLUTIONS OF THE SENATE RELATING TO ESTIMATES

82 PARTICULARS OF PROPOSED AND CERTAIN EXPENDITURE FOR 2013-14—DOCUMENTS— REFERENCE OF ESTIMATES TO COMMITTEES1 The Parliamentary Secretary for Pacific Island Affairs (Senator Thistlethwaite) tabled the following documents:

Particulars of proposed expenditure in respect of the year ending on 30 June 2014. Particulars of certain proposed expenditure in respect of the year ending on 30 June 2014. Particulars of proposed expenditure in relation to the parliamentary departments in respect of the year ending on 30 June 2014. Senator Thistlethwaite, by leave, moved—That the documents be referred to legislation committees for consideration of the estimates. Question put and passed.

8 LEGISLATION COMMITTEES—ESTIMATES HEARINGS2 The Parliamentary Secretary for School Education and Workplace Relations (Senator Collins), by leave, moved— (1) That estimates hearings by legislation committees for 2013 be scheduled as follows: 2012-13 additional estimates: Monday, 11 February and Tuesday, 12 February (Group A)

Wednesday, 13 February and Thursday, 14 February (Group B). 2013-14 Budget estimates: Monday, 27 May to Thursday, 30 May, and, if required, Friday, 31 May (Group A) Monday, 3 June to Thursday, 6 June, and, if required, Friday, 7 June (Group B)

Monday, 21 October and Tuesday, 22 October (supplementary hearings–Group A) Wednesday, 23 October and Thursday, 24 October (supplementary hearings–Group B). (2) That the committees consider the proposed expenditure in accordance with the allocation of departments and agencies to committees agreed to by the Senate. (3) That committees meet in the following groups: Group A:

Environment and Communications

Finance and Public Administration

Legal and Constitutional Affairs

Rural and Regional Affairs and Transport

Group B:

Community Affairs

Economics

Education, Employment and Workplace Relations

Foreign Affairs, Defence and Trade.

(4) That the committees report to the Senate on the following dates: (a) Tuesday, 19 March 2013 in respect of the 2012-13 additional estimates; and (b) Tuesday, 25 June 2013 in respect of the 2013-14 Budget estimates. Question put and passed.

1 Journals of the Senate, no. 144, 14 May 2013 2 Journals of the Senate, no. 121, 1 November 2012

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3 STANDING ORDERS—AMENDMENT—COMMITTEES—ALLOCATION OF DEPARTMENTS3 The Assistant Treasurer (Senator Arbib), at the request of the Minister for Tertiary Education, Skills, Science and Research (Senator Evans) and pursuant to notice, moved government business notice of motion no. 1—That the resolution of the Senate of 29 September 2010 be amended as follows: (1) Paragraph (1), omit “Rural Affairs and Transport”, substitute “Rural and Regional Affairs and

Transport”.

(2) Omit paragraph (2), substitute: That departments and agencies be allocated to legislative and general purpose standing committees as follows: Community Affairs

Families, Housing, Community Services and Indigenous Affairs Health and Ageing Human Services Economics

Industry and Innovation Resources, Energy and Tourism Tertiary Education, Skills, Science and Research Treasury Education, Employment and Workplace Relations

Education Employment and Workplace Relations Environment and Communications Broadband, Communications and the Digital Economy

Climate Change and Energy Efficiency Sustainability, Environment, Water, Population and Communities Finance and Public Administration Finance and Deregulation

Parliament Prime Minister and Cabinet

Foreign Affairs, Defence and Trade Defence, including Veterans’ Affairs Foreign Affairs and Trade Legal and Constitutional Affairs

Attorney-General Immigration and Citizenship Rural and Regional Affairs and Transport Agriculture, Fisheries and Forestry

Infrastructure and Transport Regional Australia, Local Government, Arts and Sport. Debate ensued. Question agreed to.

3 Journals of the Senate, no. 74, 8 February 2012 ii

11 STANDING ORDERS—AMENDMENT—COMMITTEES—ALLOCATION OF DEPARTMENTS4 The Minister for Agriculture, Fisheries and Forestry (Senator Ludwig), pursuant to notice of motion not objected to as a formal motion, moved government business notice of motion no. 2— (1) That standing order 25(1) be amended as follows:

Omit: ‘Environment, Communications and the Arts’ Substitute: ‘Environment and Communications’. Omit: ‘Rural and Regional Affairs and Transport’ Substitute: ‘Rural Affairs and Transport’. (2) That departments and agencies be allocated to legislative and general purpose standing

committees as follows: Community Affairs

Families, Housing, Community Services and Indigenous Affairs Health and Ageing Human Services Economics

Innovation, Industry, Science and Research Resources and Energy Tourism Treasury Education, Employment and Workplace Relations

Tertiary Education, Skills, Jobs and Workplace Relations, including School Education, Early Childhood and Youth Environment and Communications Broadband, Communications and the Digital Economy

Climate Change and Energy Efficiency Sustainability, Environment, Water, Population and Communities Finance and Public Administration Finance and Deregulation

Parliament Prime Minister and Cabinet, including Regional Australia, Regional Development and Local Government Foreign Affairs, Defence and Trade Defence, including Veterans’ Affairs Foreign Affairs and Trade Legal and Constitutional Affairs Attorney-General Immigration and Citizenship Rural Affairs and Transport Agriculture, Fisheries and Forestry Infrastructure and Transport. Statements by leave: Senators Fifield and Ludwig, by leave, made statements relating to the motion. Question put and passed.

4 Journals of the Senate, no. 2, 29 September 2010 iii

13 EDUCATION, EMPLOYMENT AND WORKPLACE RELATIONS LEGISLATION COMMITTEE— ESTIMATES HEARINGS—WITNESS5 Senator Fisher, pursuant to notice of motion not objected to as a formal motion, moved general business notice of motion no. 596—That— (a) when the Education, Employment and Workplace Relations Legislation Committee meets to

consider additional estimates in 2010: (i) the committee further examine Fair Work Australia, and (ii) the President of Fair Work Australia appear before the committee to answer questions; and (b) on each subsequent occasion on which the Education, Employment and Workplace Relations

Legislation Committee meets to consider estimates in relation to Fair Work Australia, the President of Fair Work Australia appear before the committee to answer questions. Senator Siewert, by leave, moved the following amendment: Omit paragraph (b). Question—That the amendment be agreed to—put and negatived. Statements by leave: Senator Fisher, the Leader of the Australian Greens (Senator Bob Brown) and Senator Marshall, by leave, made statements relating to the motion. Leave refused: Senator Collins sought leave to make a statement, relating to the motion. An objection was raised and leave was not granted. Main question put. Question agreed to.

21 COMMUNITY AFFAIRS—STANDING COMMITTEE—REPORT—2008-09 BUDGET ESTIMATES— ENDORSEMENT OF RECOMMENDATION6 Senator O’Brien, at the request of the Chair of the Community Affairs Committee (Senator Moore) and pursuant to notice of motion not objected to as a formal motion, moved general business notice of motion no. 144—That the Senate endorse the recommendation contained in paragraph 1.10 of the Community Affairs Committee report on the 2008-09 Budget estimates that:

Future estimates hearing programs include a separate time to conduct an estimates hearing on Indigenous matters that would include all the portfolios with budget expenditure or responsibility for Indigenous issues. Question put and passed.

5 Journals of the Senate, no. 95, 28 October 2009 6 Journals of the Senate, no. 22, 26 August 2008

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The Senate

Community Affairs

Legislation Committee

Budget estimates 2013–14

June 2013

1

 Commonwealth of Australia 2013

ISBN 978-1-74229-860-3

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

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Membership of the Committee

Members

Senator Claire Moore, Chair ALP, Queensland

Senator Rachel Siewert, Deputy Chair AG, Western Australia

Senator Carol Brown ALP, Tasmania

Senator Mark Furner ALP, Queensland

Senator Bridget McKenzie NP, Victoria

Senator Dean Smith LP, Western Australia

Substitute Members

Senator Catryna Bilyk to substitute for Senator Carol Brown for 6 June 2013 ALP, Tasmania

Senator the Hon Ursula Stephens to substitute for Senator Carol Brown for 7 June 2013

ALP, Queensland

Senators in attendance Senator Claire Moore (Chair), Senator Rachel Siewert (Deputy Chair), Senator the Hon Eric Abetz, Senator Catryna Bilyk, Senator Carol Brown, Senator Michaelia Cash, Senator Trish Crossin, Senator Richard Di Natale, Senator Sean Edwards, Senator David Fawcett, Senator Concetta Fierravanti-Wells, Senator Mitch Fifield, Senator Mark Furner, Senator the Hon Bill Heffernan, Senator Gary Humphries, Senator Sue Lines, Senator Scott Ludlam, Senator John Madigan, Senator Bridget McKenzie, Senator Marise Payne, Senator Louise Pratt, Senator Lee Rhiannon, Senator the Hon Nigel Scullion, Senator Dean Smith, Senator the Hon Ursula Stephens, Senator Penny Wright, Senator Nick Xenophon

Secretariat Dr Ian Holland Committee Secretary

Ms Eloise Menzies Research Officer Ms Carol Stewart Administration Officer

Suite S1.59 Telephone: (02) 6277 3515

Parliament House Fax: (02) 6277 5829

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

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Table of Contents

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

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

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

Details of hearings .................................................................................................. 1

Questions on Notice ............................................................................................... 2

Hansard transcripts ................................................................................................. 3

Changes in the PBS ................................................................................................ 3

Procedural issues .................................................................................................... 3

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

Families, Housing, Community Services and Indigenous Affairs Portfolio ....... 5

Department of Families, Housing, Community Services and Indigenous Affairs . 5

Cross Outcomes/Corporate Matters .................................................................... 5

Social Security Appeals Tribunal ........................................................................ 6

Disability and Carers ........................................................................................... 7

Seniors ................................................................................................................. 9

Women .............................................................................................................. 10

Workplace Gender Equality Agency (WGEA) ................................................. 10

Housing .............................................................................................................. 10

Families and Children........................................................................................ 11

Australian Institute of Family Studies (AIFS) .................................................. 12

Community Capability and the Vulnerable ....................................................... 12

Chapter 3............................................................................................................ 15

Human Services Portfolio ...................................................................................... 15

Department of Human Services............................................................................ 15

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Australian Hearing ............................................................................................. 15

Corporate ........................................................................................................... 16

Services to the Community ............................................................................... 17

Child Support ..................................................................................................... 19

Chapter 4............................................................................................................ 21

Health and Ageing Portfolio .................................................................................. 21

Department of Health and Ageing ........................................................................ 21

Whole of Portfolio/Corporate Matters .............................................................. 22

Australian Institute of Health and Welfare (AIHW) ......................................... 22

Acute Care ......................................................................................................... 23

National Health Performance Authority (NHPA) ............................................. 24

Mental Health .................................................................................................... 24

Aged Care and Population Ageing .................................................................... 25

Health System Capacity and Quality ................................................................. 25

Access to Medical Services ............................................................................... 26

Health Workforce Capacity ............................................................................... 26

Health Workforce Australia (HWA) ................................................................. 27

Primary Care ...................................................................................................... 27

National Health and Medical Research Council (NHMRC) ............................. 28

Population Health .............................................................................................. 28

Food Standards Australia New Zealand (FSANZ) and the Office of the Gene Technology Regulator (OGTR) ......................................................................... 29

Australian Radiation Protection and Nuclear Safety Agency (ARPANSA) ..... 29

Australian Commission on Safety and Quality in Health Care (ACSQHC) ..... 29

Australian National Preventive Health Agency (ANPHA) ............................... 30

Biosecurity and Emergency Response .............................................................. 30

Private Health .................................................................................................... 30

Access to Pharmaceutical Services ................................................................... 30

Hearing Services ................................................................................................ 31

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Chapter 5............................................................................................................ 33

Cross Portfolio Indigenous Matters ...................................................................... 33

General Matters ................................................................................................. 33

Closing the Gap and Stronger Futures .............................................................. 34

Health Issues ...................................................................................................... 34

Indigenous Land Corporation (ILC) .................................................................. 35

Indigenous Business Australia (IBA) ................................................................ 35

Employment and Economic Development ........................................................ 36

Indigenous Housing ........................................................................................... 36

Appendix 1 ......................................................................................................... 37

Departments and agencies under the Committee's oversight ............................ 37

Appendix 2 ......................................................................................................... 39

Commonwealth Authorities and Companies under the Committee's oversight .................................................................................................................................. 39

Appendix 3 ......................................................................................................... 41

Index to Hansard Transcripts ............................................................................... 41

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Chapter 1

Introduction

1.1 On 14 May 2013 the Senate referred the following documents to the committee for examination and report in relation to its portfolios:

• Particulars of proposed expenditure in respect of the year ending on 30

June 2014 [Appropriation Bill (No. 1) 2013-2014].

• Particulars of certain proposed expenditure in respect of the year ending

on 30 June 2014 [Appropriation Bill (No. 2) 2013-2014]; and

• Particulars of proposed expenditure in relation to the parliamentary

departments in respect of the year ending on 30 June 2014.1

1.2 The committee is responsible for the examination of the following portfolios:

• Health and Ageing;

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

• Human Services.

1.3 The committee was required to report to the Senate on its consideration of 2013-2014 budget estimates on Tuesday 25 June 2013.2

Details of hearings

1.4 The committee considered the Portfolio Budget Statements (PBS) 2013-2014 for the Families, Housing, Community Services and Indigenous Affairs portfolio, the Human Services portfolio, and the Health and Ageing portfolio, at hearings from 3 June 2013 to 7 June 2013 (inclusive). The hearings were conducted in accordance with the agreed agenda outlined as follows:

• Monday 3 June 2013 – Families, Housing, Community Services and

Indigenous Affairs portfolio

• Tuesday 4 June – Families, Housing, Community Services and

Indigenous Affairs portfolio and Human Services portfolio

• Wednesday 5 and Thursday 6 June 2013 – Health and Ageing portfolio

• Friday 7 June 2013 – Cross Portfolio – Indigenous Matters

1.5 The committee heard evidence from the following Senators:

• Senator the Hon Jan McLucas, Minister for Human Services (and

representing the Minister for Families, Community Services and

1 Journals of the Senate, No. 144, 14 May 2013, p. 3915.

2 Journals of the Senate, No. 121, 1 November 2012, p. 3239.

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Indigenous Affairs, the Minister for Housing and Homelessness, the Minister for Health, and the Minister for Mental Health and Ageing).

• Senator the Hon Matt Thistlethwaite, Parliamentary Secretary for Multicultural Affairs and for Pacific Island Affairs (representing the Minister for Families, Community Services and Indigenous Affairs and all relevant Ministers for the Cross Portfolio – Indigenous Matters Hearing).

1.6 Evidence was also provided by the following:

• Mr Finn Pratt, Secretary of the Department of Families, Housing,

Community Services and Indigenous Affairs;

• Ms Kathryn Campbell, Secretary of the Department of Human Services;

• Ms Jane Halton, Secretary of the Department of Health and Ageing;

• Ms Jennifer Taylor, Deputy Secretary of the Department of Education,

Employment and Workplace relations;

• officers representing the departments and agencies covered by the

estimates before the committee.

1.7 The committee also considered budget expenditure at a hearing on 7 June 2013 on cross portfolio Indigenous matters pursuant to Resolution of the Senate of 26 August 2008.3 Explanations relating to the estimates were received from Senator the Hon Matt Thistlethwaite. Officers from the following portfolio Departments were in attendance:

• Families, Housing, Community Services and Indigenous Affairs;

• Health and Ageing; and

• Education, Employment and Workplace Relations.

1.8 The committee thanks the ministers, departmental secretaries and officers for their assistance and cooperation during the hearings.

Questions on Notice

1.9 In accordance with Standing Order 26, the date for submission to the committee of written answers to questions or additional information relating to the expenditure is 26 July 2013. The committee notes that a forthcoming election, prorogation of parliament, or caretaker conventions have no effect on the requirement that answers to questions on notice be provided.

1.10 Answers to questions taken on notice and tabled documents relating to the committee's hearings will be tabled in the Senate. Answers to questions on notice and additional information may be accessed via the committee's website.

3 Journals of the Senate, No. 22, 26 August 2008, p. 683.

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Hansard transcripts

1.11 The committee discussed many of the expenditure proposals and information contained in the PBS. These discussions are detailed in the committee’s Hansard transcripts of 3 June 2013 to 7 June 2013 (inclusive), copies of which will be tabled in the Senate. Hansard transcripts of the estimates proceedings are also accessible on the

committee’s website at http://www.aph.gov.au/senate_ca.

1.12 References to the Hansard transcript are to the proof Hansard; page numbers may vary between the proof and the official Hansard transcript.

Changes in the PBS

1.13 The committee notes Ministerial changes in the Human Services and Families, Housing, Community Services and Indigenous Affairs portfolios since the publication of the 2012-13 Portfolio Additional Estimates Statements:

• In the Human Services portfolio, on 25 March 2013 Senator the Hon.

Jan McLucas was appointed as the Minister for Human Services;4

• In the Families, Housing, Community Services and Indigenous Affairs portfolio, on 25 March 2013 the Hon. Amanda Rishworth MP was appointed as the Parliamentary Secretary for Disabilities and Carers.5

Procedural issues

1.14 No procedural issues were noted during the hearings.

4 Human Services, Portfolio Budget Statements 2013-14, p. 4, and The Hon. Julia Gillard, MP, Prime Minister of Australia, ‘Changes to the Ministry', Media release, 25 March 2013.

5 Families, Housing, Community Services and Indigenous Affairs, Portfolio Budget Statements 2013-14, p. 3, and The Hon. Julia Gillard, MP, Prime Minister of Australia, ‘Changes to the Ministry', Media release, 25 March 2013.

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Chapter 2

Families, Housing, Community Services and Indigenous

Affairs Portfolio

Department of Families, Housing, Community Services and Indigenous Affairs

2.1 This chapter outlines key issues discussed during the 2013-2014 budget estimates hearings for the Families, Housing, Community Services and Indigenous Affairs portfolio.

2.2 The committee heard evidence from the department on Monday 3 June and Tuesday 4 June 2013. Areas of the portfolio and agencies were called in the following order:

• Cross Outcomes/Corporate Matters

• Social Security Appeals Tribunal

• Disability and Carers

• Seniors

• Women

• Workplace Gender Equality Agency

• Housing

• Families and Children

• Australian Institute of Family Studies

• Community Capability and the Vulnerable

Cross Outcomes/Corporate Matters1

2.3 Proceedings commenced with questions in relation to the Australian Charities and Not-for-profits Commissioner (ACNC). Senator Cash was interested in the relationship between the ACNC and the department. The department explained that their relationship is with the chief executive of the organisation, and outlined the role of the department in liaising with the ACNC.2 Officers of the department explained that they had been working for some time with not-for-profit partners on improving efficiency, and as part of this established the program office in January 2013. The program office is currently in the process of bringing together all program related

1 Proof Estimates Hansard, 3 June 2013, p. 4.

2 Proof Estimates Hansard, 3 June 2013, p. 5.

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activities into the one place, and the department expects this to be mostly complete by August 2013.3

2.4 The discussion then moved to general staffing questions, with the department noting that:

our slight reductions in staff are masked by the fact that we are implementing the National Disability Insurance Scheme, and at present DisabilityCare Australia, the agency, is part of the department. At some stage it will separate from the department.4

2.5 Under this outcome there was also a discussion around the department's social media policy, staff misconduct, particularly in relation to computer use, and advertising and media. In relation to advertising and media, there was an extended discussion in relation to the DisabilityCare Australia campaign. The department explained that the focus of the campaign will be around raising awareness among people with a disability of both the new agency, and eligibility and access to the scheme.

2.6 The committee also discussed the rebranding of the NDIS to DisabilityCare Australia, including when the decision was made to change the name of the program, and who was responsible for the decision.5 After discussing pay equity in the community sector in the aftermath of the SACS case,6 the department took a range of questions relating to costs on notice.7 Finally under cross outcomes the committee covered Freedom of Information Applications, employment demographics, performance payments, certain tenders put out by the department, and office locations.8

Social Security Appeals Tribunal (SSAT)9

2.7 Officers of the SSAT outlined various aspects of the corporate operations of the SSAT, including staffing, hospitality spending, professional development and training, before moving onto a discussion of the caseload of the Tribunal, including the average length of cases, number of appeals, and trends. Officers of the SSAT noted an increase in cases appealing Centrelink decisions from 2007.10

3 Proof Estimates Hansard, 3 June 2013, p. 6.

4 Proof Estimates Hansard, 3 June 2013, p. 6.

5 Proof Estimates Hansard, 3 June 2013, p. 23.

6 Proof Estimates Hansard, 3 June 2013, p. 19.

7 Proof Estimates Hansard, 3 June 2013, pp 25–26.

8 Proof Estimates Hansard, 3 June 2013, pp 26–29.

9 Proof Estimates Hansard, 3 June 2013, pp 29–33.

10 Proof Estimates Hansard, 3 June 2013, p. 31.

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2.8 The committee was interested to find out the number of appeals from indigenous persons to the SSAT. There was also a discussion of the steps taken to ensure information about the availability of review with the SSAT is understood by providers of services to indigenous persons, including through community education.11 The committee also discussed various aspects of the membership of the tribunal, including the number of members, their qualifications, and appointments and reappointments.

Disability and Carers12

2.9 Outcome 5 began with a discussion around re-entry into the disability support pension (DSP), including issues around portability and impairment ratings or capacity ratings. The committee also asked about the number of claims and rejections for the DSP and reasons for rejections. After lunch, the committee asked for more clarification about assessment and eligibility for the DSP, including putting questions on notice in relation to a further breakdown of medical and non-medical reasons for rejections.13 There was also an extended discussion about the effects of the review of the DSP impairment tables, including for people whose impairment is psychosocial, or who are under 35. The department noted that a report on the evaluation of the review of the impairment tables is due in 2014.14

2.10 The committee then asked about the PHAMS program and other programs in FaHCSIA, asking whether there is any overlap between these and the Partners in Recovery program run by the Department of Health and Ageing.15 The department noted they had worked closely with the Department of Health and Ageing during the development of the Partners in Recovery program, and that while there may be an overlap in cohort between the two programs, the roles of the programs are different. Ms Farrelly explained the differences between the programs, notably that:

Partners in Recovery is targeted at a much smaller population of people who have high support needs and have very complex interagency needs so that they require support the navigate the system to actually unblock difficulties that go between a whole range of sectors. PHAMS is one-on-one personal support. A person who comes to PHAMS is severely affected by their mental illness but would probably be drawn from a broader population. Those people need support in a range of life areas. That personal helper or mentor can help them do an individual recovery plan and then work through their plan so that they can basically live with their mental illness or recover from it.16

11 Proof Estimates Hansard, 3 June 2013, p. 31.

12 Proof Estimates Hansard, 3 June 2013, pp 33–81.

13 Proof Estimates Hansard, 3 June 2013, p. 38.

14 Proof Estimates Hansard, 3 June 2013, p. 42.

15 Proof Estimates Hansard, 3 June 2013, p. 39.

16 Proof Estimates Hansard, 3 June 2013, p. 39.

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2.11 After a discussion of the numbers of people benefitting from the carer payment and carer supplement, the committee moved to questions around the Business Skills Wage Assessment Tool (BSWAT), which until recently was used by employers of people with a disability as a tool to determine wages. The department noted that the BSWAT is currently suspended as the High Court dismissed the Commonwealth's application to appeal the Full Federal Court decision disallowing the tool. The committee was interested to find out what is currently happening for people coming into an Australian Disability Enterprise (ADE), and what options were available to government in the absence of the BSWAT. The department explained that ADEs have their own enterprise agreements, over which the department neither has control nor collects data, and that these organisations are free to seek their own industrial advice. The Department noted, however, that Fair Work Australia have agreed that, as part of ADE assessments, it will not record non-conformities.17 As the department was still in the processes of advising the government on alternative options, it declined to go into detail about these.

2.12 The committee then moved to a lengthy discussion over various aspects of the National Disability Insurance Scheme, which will formally transfer into the new agency, DisabilityCare Australia, on 1 July 2013.18 The committee first discussed advocacy funding, and how funding outside of NDIS funding was to be made available for advocacy. The department explained that the National Disability Advocacy Program (NDAP), which is the existing Commonwealth program providing funding to organisations for advocacy, will continue, and that extra funds in Program 5.6 are going towards an external merits review process that will be managed through the NDAP by FaHCSIA (rather than DisabilityCare Australia) as an additional component.19

2.13 The department outlined both the external merits review process and internal review within DisabilityCare Australia. Ms Angus explained that the role of advocacy funded by the department in the external merits review process would be to support the person rather than legally advocate on their behalf.20 In regards to internal review, funding for advocacy here would be through broader support for people in putting their plans together, within the agency. Once an internal review decision is appealed, advocacy support and the funding therein would come from outside the agency.

2.14 The committee also asked questions around the set-up of the new agency, including around the choice of Geelong as the site for the main headquarters, and the number of jobs in the Agency as at January 2014, compared to the anticipated number of positions required to support the Agency when it has been fully rolled out. The committee also clarified that the national and regional office in Geelong are being

17 Proof Estimates Hansard, 3 June 2013, p. 47.

18 Proof Estimates Hansard, 3 June 2013, p. 48.

19 Proof Estimates Hansard, 3 June 2013, p. 49.

20 Proof Estimates Hansard, 3 June 2013, p. 50.

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kept separate, and discussed the spread of regional offices generally, including possibilities for co-location with other FaHCSIA or Human Services locations, IT requirements, and the potential for contracting some activities out to specialised

organisations.

2.15 In relation to the Disability Care agency, the committee also discussed the following matters:

• Remuneration for the chair of the Board of the Agency;

• The skill set of Board Members;

• Funding for the Agency under the Medicare levy; 21

• The progress of negotiations between the Commonwealth and Western Australia;22

• Rules around compensation payments;

• Research and consultation around the name of the Agency;

• Eligibility for the scheme;

• The communication campaign;

• Interaction with the aged care system and reforms; 23 and

• Early intervention for children with autism and other specific scenarios.

Seniors24

2.16 Under this outcome the committee inquired into the additional funding included in the 2013-14 budget for the Broadband for Seniors program. The department outlined the aspects of the program which are being extended, which includes the provision of new computers for Broadband for Seniors Kiosks, and training for staff in the kiosks.

2.17 The committee also discussed the Housing Help for Seniors Pilot, asking the department to provide numbers of people expected to take-up the incentive, or be eligible, the eligibility requirements, interaction of the pilot with aged care services and reforms, and the cost of the program.25 The department noted that other discussions around the mechanics of the pilot are ongoing.

2.18 The committee also discussed pension increases and the seniors work bonus.

21 Proof Estimates Hansard, 3 June 2013, pp 63–64.

22 Proof Estimates Hansard, 3 June 2013, p. 65.

23 Proof Estimates Hansard, 3 June 2013, pp 76–77.

24 Proof Estimates Hansard, 3 June 2013, pp 81–85.

25 Proof Estimates Hansard, 3 June 2013, p. 82.

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Women26

2.19 Under outcome 6 the committee asked questions about training programs run by the Office for Women for staff of other departments, as well as training for staff within the Office. The Office also tabled a document outlining programs and services delivered under outcome 6.

2.20 The committee then discussed the issue of gender balance on boards, including a recent publication on the issue, AICD board diversity scholarships, monitoring the number of women on boards;27 Board Links and Ausgovboards (although the department noted that this initiative is headed by the Department of Finance).28

2.21 Other topics covered by the committee included:

• research and data from the Work Life Family survey;

• Activities around International Women's Day;

• The National Action Plan on Women, Peace and Security; and

• The COAG Reform Council and the COAG Select Council on Women's

Issues.

Workplace Gender Equality Agency (WGEA)29

2.22 The WGEA discussed their experience of companies reporting to them under the new Workplace Gender Equality Act 2012, and the Agency's work on increasing the number of organisations identified as covered by the act. The committee also asked questions about representation of companies in implementation groups,30 the Agency's IT system, and its education strategy, which is currently being finalised.

Housing31

2.23 Discussion of Outcome 2 began with questions about the one year transitional agreement on the National Partnership Agreement on Homelessness. The committee was interested to find out why only a one year agreement had been signed.32 In discussing funding, Senator Payne expressed disappointment that the department

could not at the time break down the funding under the transitional agreement into the

26 Proof Estimates Hansard, 3 June 2013, pp 85–99.

27 Proof Estimates Hansard, 3 June 2013, p. 87.

28 Proof Estimates Hansard, 3 June 2013, p. 94.

29 Proof Estimates Hansard, 3 June 2013, pp 92–94.

30 Proof Estimates Hansard, 3 June 2013, p. 93.

31 Proof Estimates Hansard, 3 June 2013, pp 99–124.

32 Proof Estimates Hansard, 3 June 2013, p. 104.

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funding committed by the Commonwealth and the funding committed by the states and territories for each jurisdiction.33 The committee also discussed the competitive development fund under the transitional agreement, the work going into a longer term Agreement and the government's response to the Auditor-General's report into the National Partnership Agreement on Homelessness.34 The department noted the need to be clear about what is being funded through the different agreements, particularly in working on longer term responses to homelessness. The department also tabled a communique in relation to a meeting of the Prime Minister's Council on Homelessness and discussed the COAG Select Council on Housing and Homelessness meetings.

2.24 The committee also had questions about the Housing Payment Deduction Scheme and the Public Housing Tenants' Support Bill, before moving onto questions around the National Rental Affordability Scheme (NRAS). The committee discussed issues in relation to the next rounds of the NRAS including linkage with the Livable

Housing Design Guidelines and other aspects of the guidelines and selection criteria.35 The committee also inquired into the number of incentives allocated to date under NRAS, internal review of the scheme, trading incentives,36 and the impact of NRAS projects on local communities.37

2.25 On being informed that questions around affordable home ownership were the responsibility of Treasury portfolio, Senator Ludlam remarked that this is "the last bit of fragmentation in this portfolio, which is a shame".38 The committee also had questions on social housing, as well as the use of Australian made building materials in projects receiving funding under the National Rental Affordability Scheme.39

Families and Children40

2.26 The committee commenced with questions around support for persons affected by past forced adoption practices included in the 2013-14 budget. The department noted that the funding is for support services and that FaHCSIA is now responsible for coordinating the whole of government approach.41 The committee also inquired into the modelling used by the department to determine need for support

33 Proof Estimates Hansard, 3 June 2013, p. 99.

34 Proof Estimates Hansard, 3 June 2013, pp 101–102.

35 Proof Estimates Hansard, 3 June 2013, p. 111.

36 Proof Estimates Hansard, 3 June 2013, p. 121.

37 Proof Estimates Hansard, 3 June 2013, p. 122.

38 Proof Estimates Hansard, 3 June 2013, p. 115.

39 Proof Estimates Hansard, 3 June 2013, p. 117.

40 Proof Estimates Hansard, 4 June 2013, pp 3–34.

41 Proof Estimates Hansard, 4 June 2013, p. 4.

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services, progress around setting up the working group,42 and the interaction between the Commonwealth's approach and that of the states and territories.43

2.27 The committee then discussed support services related to the Royal Commission into Institutional Responses to Child Sexual Abuse, including components of funding for support, and tenders for services. The department noted that its funding for support is not directed specifically to people giving evidence to the Commission, but for survivors generally, and that the Attorney-General's Department has responsibility for support for people giving evidence.44

2.28 There was a range of questions around the Family Support Program, and sub-programs under this. The committee was also interested in specific outreach programs in Western Australia,45 and there was a wider discussion around the Vulnerable and Disadvantaged Client Access Strategy, including outreach to rural areas in Western Australia, indigenous communities, and the general aspects of the strategy.46

2.29 The committee also discussed the Family Tax Benefit, the Schoolkids Bonus, the Baby Bonus, Paid Parental Leave, Dad or Partner Pay, and the double orphan pension.

Australian Institute of Family Studies (AIFS)47

2.30 The AIFS explained that increases in the Institute's expenditure in 2012-13 are due to it being asked to establish the Australian Gambling Research Centre, and also growth in contracted research for the institute. The committee had questions for the Institute about its longitudinal studies, and the nature of the gambling research being undertaken, as well as research into forced adoptions, grandparents raising their grandchildren, Kinship care, and gay and lesbian families.

Community Capability and the Vulnerable48

2.31 After specific questions about the funding for a range of projects under the Financial Management Program,49 the committee moved to a discussion around financial counselling. The department noted that additional funding was included in

the budget for additional counsellors to assist people affected by problem gambling, and that a drop off in funding for the Money Management Information and Education

42 Proof Estimates Hansard, 4 June 2013, p. 16.

43 Proof Estimates Hansard, 4 June 2013, p. 17.

44 Proof Estimates Hansard, 4 June 2013, p. 5.

45 Proof Estimates Hansard, 4 June 2013, p. 18.

46 Proof Estimates Hansard, 4 June 2013, p. 22.

47 Proof Estimates Hansard, 4 June 2013, pp 34–39.

48 Proof Estimates Hansard, 4 June 2013, pp 39–53.

49 Proof Estimates Hansard, 4 June 2013, p. 39.

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program was due to funding being tied up in the income management program, the funding for which terminates in 2013-14. The committee was also interested in the rural financial counselling service,50 and the work that the department is doing with the Department of Agriculture, Fisheries and Forestry in this area. FaHCSIA officers noted that while the two departments are running separately managed programs, organisations may apply for funding for both more general financial counselling and the specific funding for a specialist rural financial counsellor. There is no formal arrangement between the departments at this stage but FaHCSIA is participating in the DAFF policy development process for this program.

2.32 The committee then moved to questions around measures directed to tacking problem gambling, beginning with a discussion about the National Gambling Regulator,51 then moving to further discussion on the Australian Gambling Research and preparations for pre-commitment trials in the ACT.52 Finally the committee asked for an update on income management, including on the matched savings scheme and options for when the BasicsCard ceases in 2015-16.

50 Proof Estimates Hansard, 4 June 2013, p. 43.

51 Proof Estimates Hansard, 4 June 2013, p. 44.

52 Proof Estimates Hansard, 4 June 2013, p. 49.

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Chapter 3

Human Services Portfolio

Department of Human Services

3.1 This chapter outlines key issues discussed during the 2013-2014 budget estimates hearings for the Human Services Portfolio.

3.2 The committee heard evidence from the department on Tuesday 4 June 2013. Areas of the portfolio were called in the following order:

• Australian Hearing

• Corporate

• Services to the Community

• Child Support

Australian Hearing1

3.3 Questions began on the Agency's work with people in the justice system.2 Australian Hearing noted that eligibility for clients has not changed and that there has not been further progress in this area.

3.4 The agency also clarified its role in relation to the rollout of DisabilityCare Australia, noting there will be no change in service delivery, but confirming that consultation between Australian Hearing and DisabilityCare Australia around the rollout is ongoing.3

3.5 Other items discussed by the committee included:

• The Rehab plus service;

• Statistics showing evidence of an increase in mild hearing loss and the uptake of hearing devices;4

• Relationship to and with the Department of Human Services; and

• General staff and corporate questions. 5

1 Proof Estimates Hansard, 4 June 2013, pp 56–61.

2 Proof Estimates Hansard, 4 June 2013, p. 56.

3 Proof Estimates Hansard, 4 June 2013, p. 59.

4 Proof Estimates Hansard, 4 June 2013, p. 57.

5 Proof Estimates Hansard, 4 June 2013, p. 60.

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Corporate6

3.6 Corporate questions began with the committee requesting outlines of the savings that the department expected to be achieved from 2013-14 budget measures and other efficiencies.7 Ms Campbell noted that the department has been implementing its service delivery reform program for two years, as part of the four-year program, which will produce further efficiencies which have been taken into account in the forward estimates.8 The department noted that there are two key areas of service delivery reform which are expected to deliver savings: simplifying and automating transactional type processing and letters; and better workforce management.9 The committee was interested particularly in the savings produced by moving to online letters.10

3.7 The committee also discussed the department's increase in compliance reviews, which was included in the 2013-14 budget papers.11 Senator Fifield queried why the compliance review was only focused on one year. Ms Campbell explained that:

Often with these compliance measures government decides to do a year's worth and have a look at what the results are to determine whether the investment is worth while and what we actually find from undertaking these compliance reviews.12

3.8 Mr Popple then informed the committee that this year was chosen because the tax data from this particular year was already available to the department.13 The committee followed this up with questions about the methodology used by the department to calculate the savings it expected to be generated from the various reforms, including the measure to improve Medicare benefits scheme billing practices within public hospitals.14 The committee finally asked the department to look back over the previous budget to see whether DHS had met targeted savings.15 The department noted that while the financial year has not yet concluded, it is broadly on

6 Proof Estimates Hansard, 4 June 2013, pp 61–71.

7 Proof Estimates Hansard, 4 June 2013, p. 61.

8 Proof Estimates Hansard, 4 June 2013, p. 62.

9 Proof Estimates Hansard, 4 June 2013, p. 63.

10 Proof Estimates Hansard, 4 June 2013, p. 63.

11 Proof Estimates Hansard, 4 June 2013, p. 65.

12 Proof Estimates Hansard, 4 June 2013, p. 65.

13 Proof Estimates Hansard, 4 June 2013, p. 66.

14 Proof Estimates Hansard, 4 June 2013, pp 66–67.

15 Proof Estimates Hansard, 4 June 2013, p. 68.

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target to achieve the planned savings under each of the measures. Under corporate the committee also discussed call centre supplement funding.16

Services to the Community17

3.9 Following from the corporate discussion of call centre funding, the committee had a range of questions in relation to Smart Centres, beginning with a discussion of wait times. The department outlined various statistics in relation to wait times, noting that the change in practice away from blocking calls had resulted in increased wait times. The committee also discussed right of entry notices exercised in relation to Smart Centres,18 locations, and the e-reference guide used by staff in the centres.19

3.10 The committee also inquired into the proportion of staff employed in media and communications roles.20 The department noted that there has been a reduction in the number of public affairs officer roles from 253 to 70, since providing the committee with an answer to a previous question on notice. The committee also inquired into the number of staff monitoring social media, or monitoring media more broadly.21 The department took a question on notice to provide an organisation chart of the new public affairs arrangements.

3.11 There was a brief discussion in relation to the replacement of CUBA IT system, which currently supports the transfer of child support payments between parents.22 The Department explained that the existing legacy system is obsolete and that a review had identified a need for an improved system with capacity to be flexible, especially in response to changes in legislation. The committee then moved to discussion about the smartphone applications developed by the department, including recent awards received.23 The department outlined the four applications that the department currently has available – one for students, one for jobseekers, one for families, and one for seniors, and also described the types of activities people are able to complete through the applications. The department also noted the prevalence of smartphones in low socioeconomic demographics and in remote Indigenous communities.24 The final discussion around the IT space concerned the recently launched myGov system. 25

16 Proof Estimates Hansard, 4 June 2013, p. 69.

17 Proof Estimates Hansard, 4 June 2013, pp 71–100.

18 Proof Estimates Hansard, 4 June 2013, p. 75.

19 Proof Estimates Hansard, 4 June 2013, p. 77.

20 Proof Estimates Hansard, 4 June 2013, p. 78.

21 Proof Estimates Hansard, 4 June 2013, p. 79.

22 Proof Estimates Hansard, 4 June 2013, p. 80.

23 Proof Estimates Hansard, 4 June 2013, p. 81.

24 Proof Estimates Hansard, 4 June 2013, p. 81.

25 Proof Estimates Hansard, 4 June 2013, p. 82.

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3.12 The committee also discussed the discretion of the FaHCSIA Secretary in relation to payments.26 The department took on notice to provide advice on how decision making occurs generally and also in exceptional cases.27

3.13 There were a range of questions from the committee relating to staff in the department, including around the recruitment of staff, particularly during the time that Senator the Hon Kim Carr was minister for Human Services, and the casualisation of

the DHS workforce.28 The committee also discussed staff uniforms, name badges and nameplates, before moving to staff misconduct. Under this area there were questions around unauthorised staff access to sensitive information,29 and complaints received against staff. The committee also discussed how complaints are registered, appeals from Centrelink decisions to the SSAT,30 internal review, complaints investigated by the ombudsman, and errors and wrongful claims for Centrelink payments.31

3.14 Senator Edwards was interested in figures around the increase or decrease of benefits paid to people living in his electorate over the last five years.32 The department agreed to work through the payments identified by the Senator, and provide information that would allow the committee to see year by year changes that may have occurred in relation to these payments. The committee then moved to a more general discussion of youth unemployment.

3.15 The committee also discussed the following items:

• Co-location of service centres; 33

• Medicare electronic claiming options;

• Youth allowance, particularly in relation to the number of applications from

regional and remote students applying;

• Job Skills expos and how these are working in areas that have been subject to natural disasters, such as in Queensland;34

• Australian Government Disaster Recovery Payments; 35 and

26 Proof Estimates Hansard, 4 June 2013, p. 82.

27 Proof Estimates Hansard, 4 June 2013, p. 83.

28 Proof Estimates Hansard, 4 June 2013, p. 86.

29 Proof Estimates Hansard, 4 June 2013, p. 89.

30 Proof Estimates Hansard, 4 June 2013, p. 90.

31 Proof Estimates Hansard, 4 June 2013, p. 93.

32 Proof Estimates Hansard, 4 June 2013, p. 91.

33 Proof Estimates Hansard, 4 June 2013, p. 94.

34 Proof Estimates Hansard, 4 June 2013, p. 98.

35 Proof Estimates Hansard, 4 June 2013, p. 99.

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• The interaction of services provided by the Department of Human Services

and the current aged care reforms.

Child Support36

3.16 The committee's brief discussion of child support began with a question inquiring about a publication of a report some years previously by the Child Support Agency, Child support scheme facts and figures. The department noted that they did not have any knowledge of the report, but that information about the child support program is now included in its annual report.

3.17 The committee asked questions in relation to appeals of decisions by the Child Support Agency, and complaints about the agency that have been investigated by the ombudsman.

36 Proof Estimates Hansard, 4 June 2013, p. 101.

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Chapter 4

Health and Ageing Portfolio

Department of Health and Ageing

4.1 This chapter contains key issues discussed during the 2013-2014 budget estimates hearings for the Health and Ageing portfolio.

4.2 The committee heard evidence from the department on Wednesday 5 and Thursday 6 June 2013. Areas of the portfolio and agencies were called in the following order:

• Whole of Portfolio/Corporate Matters

• Australian Institute of Health and Welfare

• Acute Care

• National Health Performance Authority

• Australian Organ and Tissue Donation and Transplantation Authority

• Mental Health

• Aged Care and Population Ageing

• Aged Care Standards Accreditation Agency

• Health System Capacity and Quality

• Access to Medical Services

• Health Workforce Capacity

• Health Workforce Australia (HWA)

• Primary Care

• National Health and Medical Research Council (NHMRC)

• Population Health

• Food Standards Australia New Zealand (FSANZ)

• Office of the Gene Technology Regulator (OGTR)

• Therapeutic Goods Administration (TGA)

• Australian Radiation Protection and Nuclear Safety Agency

(ARPANSA)

• Cancer Australia

• Australian Commission on Safety and Quality in Health Care

(ACSQHC)

• Australian National Preventive Health Agency (ANPHA)

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• Biosecurity and Emergency Response

• Private Health

• Rural Health

• Access to Pharmaceutical Services

• Hearing Services

4.3 The committee also heard evidence from the National e-Health Transition Authority (NeHTA) under the department's "Health System Capacity and Quality" area.

Whole of Portfolio/Corporate Matters1

4.4 Senator Fierravanti-Wells began by first thanking the department for providing a budget reporting element (BRE) chart to the committee, and asked if this chart could be updated in line with the 2013-14 budget.2 The committee then discussed advertisements on Victorian hospital funding, before moving to other general advertising costs for the department, including around budget funding of $10m for a communications campaign about Medicare.3 The department noted that the campaign was still subject to government approval, but that officers could discuss the rationale for the advertising that has been put to the Independent Communications Committee (ICC).4

4.5 There was also a general discussion on staffing in the department, including questions about the ratio between APS staff and EL staff, and work by the department to increase the number of more junior APS staff relative to middle management.5

Australian Institute of Health and Welfare (AIHW)6

4.6 Senator Rhiannon referred the AIHW to a 2005 publication around abortion statistics. The AIHW confirmed that this is the latest data they have available, and that they do not intend to do further work at this stage, due primarily to funding constraints.7 The committee then discussed a range of other research conducted by the Institute, including research into rising hospital admissions for older Australians,8 and health outcomes that may be used to measure the success of income management

1 Proof Estimates Hansard, 5 June 2013, pp 6–24.

2 Proof Estimates Hansard, 5 June 2013, p. 7.

3 Proof Estimates Hansard, 5 June 2013, p. 11.

4 Proof Estimates Hansard, 5 June 2013, p. 14.

5 Proof Estimates Hansard, 5 June 2013, p. 16.

6 Proof Estimates Hansard, 5 June 2013, pp 20–24.

7 Proof Estimates Hansard, 5 June 2013, p. 20.

8 Proof Estimates Hansard, 5 June 2013, p. 21.

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programs. The AIHW noted that they are currently working on the next version of Australia's welfare, which features some work looking at poverty, low income and wealth amongst particular groups, and will also have some specific work on workforce participation by older Australians.9 The AIHW also ran the committee through its current work program,10 and provided an overview of work being done to improve the accessibility of its research.11

Acute Care12

4.7 This outcome commenced with a discussion about leave for living organ donors. The department explained that money had only been committed to the program for two years because it is a trial which will be evaluated after this period. The committee also discussed eligibility for the trial, and the rationale around providing the payment to the employer, rather than the donor.13 Senator Smith was also interested in the incidence of Australians travelling overseas to receive organ transplants. Neither the department nor the Australian Organ and Tissue Donation and Transplantation Authority were aware of substantive data on this issue, or the number hospital admissions as a result.14

4.8 There was then an extended discussion around payments directed to Victorian local hospital networks.15 The department outlined the process by which the government decided to reinstate money that had been withdrawn from the local hospital networks as a result of the Victorian government passing on parameter variations contained in the Mid-Year Economic and Fiscal Outlook.16 The department clarified that this had been an unusual occurrence in one particular jurisdiction, and that the payments were also outside the national health reform agreement funding flows. Senator Di Natale was interested to find out why Victoria had been considered a special case, and the department explained that while all states had been subject to a parameter variation in their funding from the Commonwealth, it was only Victoria that immediately passed that on as cuts to local hospital networks.17 Professor Halton also noted that there were unexpended Commonwealth funds directed to Victoria that were able to be reallocated to the local hospital networks.

9 Proof Estimates Hansard, 5 June 2013, p. 22.

10 Proof Estimates Hansard, 5 June 2013, p. 23.

11 Proof Estimates Hansard, 5 June 2013, p. 24.

12 Proof Estimates Hansard, 5 June 2013, pp 25–44.

13 Proof Estimates Hansard, 5 June 2013, p. 26.

14 Proof Estimates Hansard, 5 June 2013, p. 28.

15 Proof Estimates Hansard, 5 June 2013, p. 31.

16 Proof Estimates Hansard, 5 June 2013, p. 32.

17 Proof Estimates Hansard, 5 June 2013, p. 34.

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4.9 The committee also discussed the National Health Reform Amendment (Definitions) Bill,18 and budget measures directed to dental care,19 including National Partnership Agreements for dental care,20 and the Grow up Smiling Initiative.21

National Health Performance Authority (NHPA)22

4.10 Discussion with the NHPA centred on the Performance and Accountability Framework for Medicare Locals. The committee was interested in the Authority's timeline for publishing reports covering assessment of Medicare Locals, and in how the Authority determines the order in which they create reports. 23

Mental Health24

4.11 Discussion of mental health commenced with a number of questions about Early Psychosis Prevention and Intervention Centres (EPPICs). The committee sought clarification around funding for EPPICs in the forward estimates,25 the locations of the centres,26 and governance of EPPIC sites being delivered by headspace.27 The department outlined how the EPPIC services will be rolled out through the headspace model.28

4.12 The committee then moved to questions on the Partners in Recovery Program,29 including around evaluation of the program and any overlap with DisabilityCare Australia. Senator Fierravanti-Wells was interested in the number of Medicare Locals that had been selected as lead partners for the program. The committee also discussed the interaction of the Partners in Recovery program with the PHaMs program, confirming the description given by FaHCSIA officers earlier in the week.30

18 Proof Estimates Hansard, 5 June 2013, p. 39.

19 Proof Estimates Hansard, 5 June 2013, p. 35.

20 Proof Estimates Hansard, 5 June 2013, p. 36.

21 Proof Estimates Hansard, 5 June 2013, p. 37.

22 Proof Estimates Hansard, 5 June 2013, pp 41–44.

23 Proof Estimates Hansard, 5 June 2013, p. 41.

24 Proof Estimates Hansard, 5 June 2013, pp 44–64.

25 Proof Estimates Hansard, 5 June 2013, p. 44.

26 Proof Estimates Hansard, 5 June 2013, p. 46.

27 Proof Estimates Hansard, 5 June 2013, p. 48.

28 Proof Estimates Hansard, 5 June 2013, p. 49.

29 Proof Estimates Hansard, 5 June 2013, p. 53.

30 Proof Estimates Hansard, 5 June 2013, p. 62.

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Aged Care and Population Ageing31

4.13 After responding to an inquiry into funding provided to seniors

organisations,32 the department provided an update on the National LGBTI Aged Care Strategy, noting that it intends to report on the Strategy in October.33

4.14 Discussion on aged care and population ageing then moved through the various elements of the aged care reform package. The committee discussed Home Support and Home Care,34 and the department provided an update on Home and Community Care (HACC) funding.35 There was then a discussion around the Aged Care Approval Round (ACAR) being delayed pending passage of the Living Longer. Living Better Bills.36 The committee also discussed the My Aged Care website,37 and general issues around the potential for any increase in the regulatory burden for residential care providers as a result of the reforms.38

4.15 There was also a broad discussion on the Aged Care Funding Instrument (ACFI), and the department explained the circumstances leading to the revision of the instrument.39 The committee also discussed dementia care,40 hospital admissions for older people,41 and transition care.42

Health System Capacity and Quality43

4.16 Officers of the department confirmed that funding for the Personally Controlled Electronic Health Record (PCEHR) will expire on 30 June 2014,44 and explained that the department is now working on a business case in respect of future e-health funding with the states and territories. The department provided an update on hospitals in Tasmania and Canberra coming onto the PCEHR system.45 The

31 Proof Estimates Hansard, 5 June 2013, pp 64–94.

32 Proof Estimates Hansard, 5 June 2013, p. 64.

33 Proof Estimates Hansard, 5 June 2013, p. 65.

34 Proof Estimates Hansard, 5 June 2013, p. 66.

35 Proof Estimates Hansard, 5 June 2013, p. 69.

36 Proof Estimates Hansard, 5 June 2013, p. 71.

37 Proof Estimates Hansard, 5 June 2013, p. 75.

38 Proof Estimates Hansard, 5 June 2013, p. 76.

39 Proof Estimates Hansard, 5 June 2013, p. 78.

40 Proof Estimates Hansard, 5 June 2013, p. 82.

41 Proof Estimates Hansard, 5 June 2013, p. 85.

42 Proof Estimates Hansard, 5 June 2013, p. 86.

43 Proof Estimates Hansard, 5 June 2013, pp 95–110.

44 Proof Estimates Hansard, 5 June 2013, p. 95.

45 Proof Estimates Hansard, 5 June 2013, p. 101.

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committee also discussed e-health funding and the PCEHR in general and the continued funding of NeHTA, e-health in the ageing space,46 assisted registration,47 and promotional materials for the PCEHR.48

Access to Medical Services49

4.17 There was a brief return to the earlier discussion around abortion data,50 before the committee moved to questions around the Extended Medicare Safety Net,51 including on expenditure over the forward estimates and the expected reduction in the number of people who will qualify after changes on 1 January 2015. In relation to Medicare, the committee also had questions about efforts to remove double billing,52 indexation,53 and its effect on bulk billing.54

Health Workforce Capacity55

4.18 Questions under this outcome initially focused on the Mason Review of Australian Government Health Workforce Programs (Mason Review). The committee inquired into the cost of the review, and its recommendation that the Australian Standard Geographical Classification - Remoteness Area (ASGC-RA) be reformed. Senator Fawcett was interested in whether the committee's own report into this area was being considered in the government's response. In addressing a question about the timeline for the government's response, the department initially indicated that there

was no definite deadline in place. Officers later agreed, however, that a timeframe for action had been published on the department's website.56

4.19 The committee also discussed the makeup of rural classification technical working group,57 bonded scholarships,58 dental graduate programs,59 the Nursing and

46 Proof Estimates Hansard, 5 June 2013, p. 98.

47 Proof Estimates Hansard, 5 June 2013, p. 99.

48 Proof Estimates Hansard, 5 June 2013, p. 100.

49 Proof Estimates Hansard, 5 June 2013, pp 110–115.

50 Proof Estimates Hansard, 5 June 2013, p. 110.

51 Proof Estimates Hansard, 5 June 2013, p. 111.

52 Proof Estimates Hansard, 5 June 2013, p. 112.

53 Proof Estimates Hansard, 5 June 2013, p. 113.

54 Proof Estimates Hansard, 5 June 2013, p. 114.

55 Proof Estimates Hansard, 5 June 2013, pp 115–129.

56 Proof Estimates Hansard, 5 June 2013, p. 118.

57 Proof Estimates Hansard, 5 June 2013, p. 117.

58 Proof Estimates Hansard, 5 June 2013, p. 119.

59 Proof Estimates Hansard, 5 June 2013, p. 121.

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Allied Health Rural Locum Scheme,60 and the General Practice Rural Incentives Program.61

Health Workforce Australia (HWA)62

4.20 The committee discussed staff increases in the agency, and the clinical training funding program, before asking general questions around reports produced by the agency, the Rural Health Professionals Program, and workforce issues in remote and rural aged care.63

Primary Care64

4.21 Thursday morning began with a discussion of General Practitioner standards, including the role of the Australian Commission on Safety and Quality in Health Care in developing these standards. The committee then briefly discussed the Tasmanian Health Assistance Package and Primary Care Infrastructure grants, before moving to a more extended discussion around Medicare Locals. Topics covered included the use of the term "Medicare",65 current and future funding arrangements,66 money earned independently by the organisations,67 administration costs,68 and activities engaged in by Medicare Locals.69

4.22 The remainder of questions under this outcome were around GP Super Clinics. The department gave the committee an update on the remaining sites to be developed.70 There were also questions about milestones for the Super Clinics,71 variations in funding agreements, performance and outcomes for the Super Clinics and the evaluation of the Super Clinic program.72

60 Proof Estimates Hansard, 5 June 2013, p. 122.

61 Proof Estimates Hansard, 5 June 2013, p. 123.

62 Proof Estimates Hansard, 5 June 2013, pp 126–129.

63 Proof Estimates Hansard, 5 June 2013, p. 128.

64 Proof Estimates Hansard, 6 June 2013, pp 5–30, 38–42.

65 Proof Estimates Hansard, 6 June 2013, p. 9.

66 Proof Estimates Hansard, 6 June 2013, p. 13.

67 Proof Estimates Hansard, 6 June 2013, p. 16.

68 Proof Estimates Hansard, 6 June 2013, p. 17.

69 Proof Estimates Hansard, 6 June 2013, p. 20.

70 Proof Estimates Hansard, 6 June 2013, p. 22.

71 Proof Estimates Hansard, 6 June 2013, p. 25.

72 Proof Estimates Hansard, 6 June 2013, p. 40.

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National Health and Medical Research Council (NHMRC)73

4.23 The committee had general questions for the NHMRC in relation to approval processes for guidelines,74 and around funding for various areas of research.75 Senator Di Natale was interested in the Council's review into wind farms and health, especially public participation in the review.76 There were also questions about potential conflicts of interest in observers to the NHMRC's reviews,77 and processes for addressing unapproved research.78

Population Health79

4.24 The committee was provided with an update on the bowel screening program,80 before asking some questions about breast screening, specifically in relation to the decentralisation of breast screening centres in Queensland.81 The budget measure addressed to reaching older women for breast screening was also discussed.82

4.25 The committee then discussed drug policy, with the department providing an update on responses to the plain packaging legislation.83 Here the committee had specific questions around compliance and enforcement for the legislation.84 Discussion then moved to alcohol policy, with questions in relation to Fetal Alcohol Syndrome Disorder,85 especially in relation to pregnancy warning labels, and the National alcohol strategy.86 The committee also discussed potential legislative measures and regulatory approaches to synthetic drugs,87 and the misuse of legal pharmaceuticals.88

73 Proof Estimates Hansard, 6 June 2013, pp 30–37.

74 Proof Estimates Hansard, 6 June 2013, p. 30.

75 Proof Estimates Hansard, 6 June 2013, p. 31.

76 Proof Estimates Hansard, 6 June 2013, p. 33.

77 Proof Estimates Hansard, 6 June 2013, p. 35.

78 Proof Estimates Hansard, 6 June 2013, p. 37.

79 Proof Estimates Hansard, 6 June 2013, pp 42–93.

80 Proof Estimates Hansard, 6 June 2013, p. 42.

81 Proof Estimates Hansard, 6 June 2013, p. 42.

82 Proof Estimates Hansard, 6 June 2013, p. 45.

83 Proof Estimates Hansard, 6 June 2013, p. 43.

84 Proof Estimates Hansard, 6 June 2013, p. 44.

85 Proof Estimates Hansard, 6 June 2013, p. 46.

86 Proof Estimates Hansard, 6 June 2013, p. 47.

87 Proof Estimates Hansard, 6 June 2013, p. 53.

88 Proof Estimates Hansard, 6 June 2013, p. 55.

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4.26 After a discussion of regulatory policy for medical devices, including funding for medical device registries in the 2013-14 budget,89 the committee discussed immunisation.90 There were questions in relation to the Human Papilloma Virus vaccination program and a discussion around vaccine refusal.91

Food Standards Australia New Zealand (FSANZ) and the Office of the Gene Technology Regulator (OGTR)92

4.27 Senator Siewert asked FSANZ and then OGTR about issues around double stranded RNA in terms of genetically modified organisms (GMOs), and genetically modified wheat.93 There were also questions for FSANZ around levels of certain chemicals in imported foods,94 and on testing and analysis of imported foods, although FSANZ clarified that their responsibility is to provide advice to the Department of Agriculture, Fisheries and Forestry, who are responsible for the actual testing of these products.95

Australian Radiation Protection and Nuclear Safety Agency (ARPANSA)96

4.28 There was a discussion with ARPANSA around safety culture in facilities, and around whistle-blowing and the avenues and protections for people who wish to report problems. Senator Ludlam put a question to the minister in relation to non-nuclear production of radioactive isotopes, and there was also a discussion of the government's response to the UN-System wide study of international nuclear safety, security and safeguards.97

Australian Commission on Safety and Quality in Health Care (ACSQHC)98

4.29 There were general corporate questions for the Commission,99 before the committee moved to a discussion around anti-microbial resistance.100 The ACSQHC gave an update on the work of the Antimicrobial Resistance Standing Committee, and other activities in this area.

89 Proof Estimates Hansard, 6 June 2013, p. 60.

90 Proof Estimates Hansard, 6 June 2013, p. 68.

91 Proof Estimates Hansard, 6 June 2013, p. 71.

92 Proof Estimates Hansard, 6 June 2013, pp 62–68.

93 Proof Estimates Hansard, 6 June 2013, p. 63, and p. 66.

94 Proof Estimates Hansard, 6 June 2013, p. 64.

95 Proof Estimates Hansard, 6 June 2013, p. 65.

96 Proof Estimates Hansard, 6 June 2013, pp 76–80.

97 Proof Estimates Hansard, 6 June 2013, p. 79.

98 Proof Estimates Hansard, 6 June 2013, pp 82–87.

99 Proof Estimates Hansard, 6 June 2013, p. 83.

100 Proof Estimates Hansard, 6 June 2013, p. 85.

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Australian National Preventive Health Agency (ANPHA)101

4.30 The committee had questions for the ANPHA around its recent branding exercise, and also asked the agency to outline its current programs and projects. The committee was also interested in the work that ANPHA has done with Medicare Locals, and the status of the final report into Exploring the public interest base for a minimum (floor) price for alcohol.102

Biosecurity and Emergency Response103

4.31 The committee asked questions in relation to the replenishment of the National Medical Stockpile, including around the extension of dates for some of the medicines, disposal of the expired medicines, emerging biosecurity threats, and how the stockpile is configured to account for these. While the department noted that it is unable to comment on security threats, officers outlined some of the health threats that are being considered, particularly the H7N9 virus, which Professor Baggoley detailed for the committee.104

Private Health105

4.32 The committee discussed the Operations of Private Health Insurers annual report 2011-12, before a question was raised in relation to the Private Health Insurance Base Premium Bill. The Chair noted however that the bill was before the Senate and also being considered by the committee discussion should be reserved to

that inquiry. The committee then moved to general questions in relation to pre-paid policy holders and the private health insurance rebates.

Access to Pharmaceutical Services106

4.33 Senator Fierravanti-Wells had questions for the department in relation to extra funding in the 2013-14 budget for the supply of chemotherapy drugs.107 The committee then moved to a discussion around measures taken by the department in response to the issue of patent evergreening. Senator Heffernan was particularly interested in this area, and the department undertook to supply the committee with the department's watch list of cases before the courts that are concerned with this issue.108

101 Proof Estimates Hansard, 6 June 2013, pp 87–93.

102 Proof Estimates Hansard, 6 June 2013, p. 92.

103 Proof Estimates Hansard, 6 June 2013, pp 94–97.

104 Proof Estimates Hansard, 6 June 2013, p. 95.

105 Proof Estimates Hansard, 6 June 2013, pp 97–100.

106 Proof Estimates Hansard, 6 June 2013, pp 101–122.

107 Proof Estimates Hansard, 6 June 2013, p. 102.

108 Proof Estimates Hansard, 6 June 2013, p. 104.

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4.34 There was an extended discussion around the Pharmaceutical Benefits Scheme, particularly in relation to the processes involving the Pharmaceutical Benefits Advisory Council (PBAC), price disclosure, and post market reviews. The committee also discussed the Alzheimer's Review,109 the Diabetes Review, and the Life Saving Drugs Program.110

Hearing Services111

4.35 In the final session for the evening the Office for Hearing Services provided the committee with an update on the response to recommendations contained in the Hear Us Inquiry into Hearing Services in Australia report. Questions on notice were taken in relation to services for young people, neonatal screening, and data collection. The committee also discussed a regulatory review that is being undertaken in relation to the legislative framework of one of the components of the program,112 the Office's work with DisabilityCare Australia,113 and work to raise awareness among young people about hearing loss.114

109 Proof Estimates Hansard, 6 June 2013, p. 116.

110 Proof Estimates Hansard, 6 June 2013, p. 119.

111 Proof Estimates Hansard, 6 June 2013, pp 122–128.

112 Proof Estimates Hansard, 6 June 2013, p. 124.

113 Proof Estimates Hansard, 6 June 2013, p. 125.

114 Proof Estimates Hansard, 6 June 2013, p. 127.

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Chapter 5

Cross Portfolio Indigenous Matters

5.1 This chapter contains key issues discussed during the 2013-2014 budget estimates hearings for cross portfolio Indigenous matters pursuant to Resolution of the Senate of 26 August 2008.1 The following portfolio departments were in attendance:

• Families, Housing, Community Services and Indigenous Affairs

• Health and Ageing

• Education, Employment and Workplace Relations

5.2 The committee heard evidence from portfolio departments on Friday 7 June 2013. Areas of the portfolios were called in the following order:

• General Matters

• Closing the Gap

• Stronger Futures

• Health Issues

• Indigenous Land Corporation

• Indigenous Business Australia

• Employment and Economic Development

• Indigenous Housing

General Matters2

5.3 Discussion under general matters began with a return to questions around the resignation and reappointment of Indigenous Land Corporation CEO Bruce Gemmell. Senator Scullion tabled a letter from the minister to the former Chair of the Indigenous Land Corporation concerning processes around CEO appointments. The committee then discussed the Commonwealth's role in the provision of municipal services,3 before moving to questions around a particular grant directed to putting on a cultural festival in Alice Springs.4

1 Journals of the Senate, No. 22, 26 August 2008, p. 683.

2 Proof Estimates Hansard, 7 June 2013, pp 4–11.

3 Proof Estimates Hansard, 7 June 2013, p. 7.

4 Proof Estimates Hansard, 7 June 2013, p. 9.

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Closing the Gap and Stronger Futures5

5.4 Discussion commenced with questions about the review process for the National Indigenous Reform Agreement (NIRA). FaHCSIA officers noted that the review was conducted through COAG processes and that results of the review could be found on the COAG website.6 The committee then had questions around the latest Closing the Gap Report, including around life expectancy, and the breakdown of data. The department confirmed that the next set of life expectancy data published by the Australian Bureau of Statistics would be able to be broken down by remoteness region.7 The committee also discussed Closing the Gap literacy and numeracy targets,8 before moving to a discussion of early childhood education targets and early intervention programs.

5.5 The committee's questions under stronger futures focused on referrals to income management through the current Northern Territory Alcohol and Other Drugs Tribunal. The Northern Territory Government announced its proposal to disband the tribunal in May, and there was a general discussion around what the process around income management referrals will be once the Tribunal is disbanded.9

Health Issues10

5.6 The committee asked officers from the Department of Health and Ageing to provide an update on the negotiations around renewing the National Partnership Agreement on Closing the Gap in Indigenous Health Outcomes.11 The committee was interested in the progress of implementation plans and agreements with the Northern Territory on which some components of Commonwealth health funding were contingent,12 such as some funding for community health organisations.

5.7 The committee then asked a range of questions about efforts to curb indigenous smoking.13 The committee inquired into funding and evaluation for the program and into the in-school component for the anti-smoking program.14

5 Proof Estimates Hansard, 7 June 2013, pp. 11–18.

6 Proof Estimates Hansard, 7 June 2013, p. 11.

7 Proof Estimates Hansard, 7 June 2013, p. 12.

8 Proof Estimates Hansard, 7 June 2013, p. 14.

9 Proof Estimates Hansard, 7 June 2013, p. 17.

10 Proof Estimates Hansard, 7 June 2013, pp. 18–45.

11 Proof Estimates Hansard, 7 June 2013, p. 18.

12 Proof Estimates Hansard, 7 June 2013, p. 23.

13 Proof Estimates Hansard, 7 June 2013, p. 25.

14 Proof Estimates Hansard, 7 June 2013, p. 27.

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5.8 The committee's discussion of indigenous mental health focused particularly on measures to prevent suicide amongst indigenous Australians.15 There was then an extended discussion of renal services.16 Officers of the Department of Health and Ageing provided the committee with some detail about the movement of unexpended funds to support work in this area.17 The committee expressed concern over the potential for funds directed to renal services to be lost, as state and territory governments hold responsibility for renal service provision, and extra services directed to dialysis are contingent on agreements between the Commonwealth and the particular state or territory.

5.9 The committee also had questions about the government's discussions with the Northern Territory around the Alcohol Mandatory Treatment Bill,18 and measures directed to combatting petrol sniffing, particularly around storage facilities for low aromatic fuel in Darwin and other areas.19

Indigenous Land Corporation (ILC)20

5.10 There was a discussion with the ILC and officers of FaHCSIA around the processes for providing answers to questions on notice.21 Senator Scullion then moved to questions around the legislative criteria governing the makeup of the ILC board, and other questions about governance of the Agency.

Indigenous Business Australia (IBA)22

5.11 Senator Scullion began by congratulating the IBA on actions to improve the employment outcomes of the investments held by the Agency.23 There were then questions for the agency about additional funding for certain investments,24 and the legal obligations of the Agency in relation to its involvement in the Tjapukai Aboriginal Cultural Park.25 At the end this session, Mr Chris Fry, CEO, tabled a letter from himself to the committee which addressed a matter reported in the media with reference to Mr Fry's role as CEO in appearing before the committee during Senate Estimates.

15 Proof Estimates Hansard, 7 June 2013, p. 29.

16 Proof Estimates Hansard, 7 June 2013, p. 33.

17 Proof Estimates Hansard, 7 June 2013, p. 34.

18 Proof Estimates Hansard, 7 June 2013, p. 40.

19 Proof Estimates Hansard, 7 June 2013, p. 43.

20 Proof Estimates Hansard, 7 June 2013, pp 46–52.

21 Proof Estimates Hansard, 7 June 2013, p. 47.

22 Proof Estimates Hansard, 7 June, pp 52–56.

23 Proof Estimates Hansard, 7 June 2013, p. 52.

24 Proof Estimates Hansard, 7 June 2013, p. 54.

25 Proof Estimates Hansard, 7 June 2013, p. 55.

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Employment and Economic Development26

5.12 There was a wide ranging discussion on the Remote Jobs and Communities Program (RJCP), including around the announcement of providers approved for the program, and plans in place for these organisations to be operational commencing 1 July 2013. Officers of the Department of Education, Employment and Workplace Relations provided an explanation of the allocation of funding among RJCP regions.27 There was also a discussion of the application process for the program, including around selection criteria for applications.28 Other items discussed included:

• Community Action Plans (CAPs);

• Community Development Fund (CDF); 29 and

• the Indigenous Youth Careers pathway program. 30

Indigenous Housing31

5.13 The final item on the program commenced with a discussion around the Strategic Indigenous Housing and Infrastructure Program (SIHIP), focusing on elements around the wind-up of this program, such as the number of people who completed apprenticeships or training under the SIHIP.32 The committee also discussed the Home ownership on Indigenous Land Program,33 and the National Partnership Agreement on Remote Indigenous Housing (NPARIH).34 Officers of FaHCSIA provided the committee with a copy of the latest review of the NPARIH, and answered questions about land tenure reform, and work to achieve leasing in the Northern Territory.

Senator Claire Moore Chair

26 Proof Estimates Hansard, 7 June 2013, pp 56–71.

27 Proof Estimates Hansard, 7 June 2013, p. 58.

28 Proof Estimates Hansard, 7 June 2013, p. 61.

29 Proof Estimates Hansard, 7 June 2013, p. 68.

30 Proof Estimates Hansard, 7 June 2013, p. 70.

31 Proof Estimates Hansard, 7 June 2013, pp 71–77.

32 Proof Estimates Hansard, 7 June 2013, p. 73.

33 Proof Estimates Hansard, 7 June 2013, p. 74.

34 Proof Estimates Hansard, 7 June 2013, p. 77.

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Appendix 1

Departments and agencies under the Committee's oversight1

Families, Housing, Community Services and Indigenous Affairs Portfolio • Department of Families, Housing, Community Services and Indigenous

Affairs (FaHCSIA)

• Australian Institute of Family Studies

• Workplace Gender Equality Agency (WGEA)

Health and Ageing Portfolio • Department of Health and Ageing (DoHA)

• Australian National Preventive Health Agency (ANPHA)

• Australian Organ and Tissue Donation and Transplantation Authority

• Australian Radiation Protection and Nuclear Safety Agency (ARPANSA)

• Cancer Australia

• Independent Hospital Pricing Authority

• National Blood Authority

• National Health and Medical Research Council (NHMRC)

• National Health Funding Body (NHFB)

• National Health Performance Authority

• Private Health Insurance Ombudsman

• Professional Services Review Scheme

Human Services Portfolio • Department of Human Services (DHS)

1 This document has been prepared based on the Department of Finance and Deregulation's Chart of 110 Agencies under the Financial Management and Accountability Act 1997 (FMA Act) as at 23 April 2013, http://www.finance.gov.au/publications/flipchart/docs/FMACACFlipchart.pdf

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38

46

Appendix 2

Commonwealth Authorities and Companies under the Committee's oversight1

Families, Housing, Community Services and Indigenous Affairs Portfolio • Aboriginal Hostels Limited

• Anindilyakwa Land Council

• Central Land Council

• Indigenous Business Australia

• Indigenous Land Corporation

• National Disability Insurance Scheme Launch Transition Agency

• Northern Land Council

• Outback Stores Pty Ltd

• Tiwi Land Council

• Torres Strait Regional Authority

• Wreck Bay Aboriginal Community Council

Health and Ageing Portfolio • Aged Care Standards and Accreditation Agency Ltd

• Australian Commission on Safety and Quality in Health Care

• Australian Institute of Health and Welfare

• Food Standards Australia New Zealand

• General Practice Education and Training Limited

• Health Workforce Australia

• Private Health Insurance Administration Council

Human Services Portfolio • Australian Hearing Services (Australian Hearing)

1 This document has been prepared based on the Department of Finance and Deregulation's Chart of 84 bodies under the Commonwealth Authorities and Companies Act 1997 (CAC Act) as at 23 April 2013, http://www.finance.gov.au/publications/flipchart/docs/FMACACFlipchart.pdf

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40

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Appendix 3

Index to Hansard Transcripts1 Page no.

Monday, 3 June 2013

Families, Housing, Community Services and Indigenous Affairs Portfolio

Cross Outcomes/ Corporate Matters ....................................................................... 4

Social Security Appeals Tribunal ......................................................................... 29

Disability and Carers ........................................................................................... 33

Seniors ................................................................................................................... 81

Women .................................................................................................................. 85

Women and the Workplace Gender Equality Agency (WGEA) .......................... 92

Housing ................................................................................................................. 99

Tuesday, 4 June 2013

Families, Housing, Community Services and Indigenous Affairs Portfolio

Families and Children ............................................................................................ 3

Australian Institute of Family Studies ................................................................. 34

Community Capability and the Vulnerable .......................................................... 39

Human Services Portfolio

Australian Hearing ............................................................................................... 56

Corporate ............................................................................................................. 61

Services to the Community .................................................................................. 71

Child Support ..................................................................................................... 101

Wednesday, 5 June 2013

Health and Ageing Portfolio

Whole of Portfolio/ Corporate Matters .................................................................. 6

Australian Institute of Health and Welfare .......................................................... 20

Acute Care ............................................................................................................ 25

1 Hansard page numbers referred to in this appendix are based on proof Hansards. Page numbers may vary slightly in the final official Hansard transcripts.

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42

National Health Performance Authority ............................................................... 41

Mental Health........................................................................................................ 44

Aged Care and Population Ageing ...................................................................... 64

Aged Care Standards Accreditation Agency ....................................................... 92

Health System Capacity and Quality ................................................................... 95

Access to Medical Services ............................................................................... 110

Health Workforce Capacity ............................................................................... 115

Health Workforce Australia (HWA) ................................................................... 126

Thursday, 6 June 2013

Health and Ageing Portfolio

Primary Care .......................................................................................................... 5

Australian Organ and Tissue Donation and Transplantation Authority .............. 28

National Health and Medical Research Council (NHMRC) ................................ 30

Population Health ................................................................................................. 42

Food Standards Australia and New Zealand (FSANZ ) ....................................... 62

Office of the Gene Technology Regulator (OGTR) ............................................. 66

Therapeutic Goods Administration ....................................................................... 74

Australian Radiation Protection and Nuclear Safety Agency (ARPANSA) ........ 76

Cancer Australia.................................................................................................... 80

Australian Commission on Safety and Quality in Health Care (ACSQHC) ........ 82

Australian National Preventative Health Agency (ANPHA) ............................... 87

Biosecurity and Emergency Response .................................................................. 94

Private Health........................................................................................................ 97

Rural Health ....................................................................................................... 100

Access to Pharmaceutical Services .................................................................... 101

Hearing Services ................................................................................................. 122

Friday, 7 June 2013

Cross Portfolio – Indigenous Matters

General Matters ...................................................................................................... 4

Closing the Gap .................................................................................................... 11

Stronger Futures ................................................................................................... 16

Health Issues ......................................................................................................... 18

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Indigenous Land Corporation (ILC) ..................................................................... 46

Indigenous Business Australia (IBA) .................................................................. 52

Employment and Economic Development .......................................................... 56

Indigenous Housing ............................................................................................. 71

51

52

The Senate

Economics

Legislation Committee

Budget estimates 2013–14

June 2013

53

© Commonwealth of Australia 2013

ISBN 978-1-74229-861-0

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

54

Senate Economics Legislation Committee

Members

Senator Mark Bishop, Chair Western Australia, ALP

Senator David Bushby, Deputy Chair Tasmania, LP

Senator Doug Cameron New South Wales, ALP

Senator Alan Eggleston Western Australia, LP

Senator Anne Urquhart Tasmania, ALP

Senator Nick Xenophon South Australia, IND

Other senators in attendance

Senator the Hon Eric Abetz Tasmania, LP

Senator Simon Birmingham South Australia, LP

Senator the Hon George Brandis SC Queensland, LP

Senator the Hon Richard Colbeck Tasmania, LP

Senator Mathias Cormann Western Australia, LP

Senator Sean Edwards South Australia, LP

Senator Mitch Fifield Victoria, LP

Senator Alex Gallacher South Australia, ALP

Senator the Hon Bill Heffernan New South Wales, LP

Senator the Hon David Johnston Western Australia, LP

Senator Barnaby Joyce Queensland, NATS

Senator Helen Kroger Victoria, LP

Senator Scott Ludlam Western Australia, AG

Senator Bridget McKenzie Victoria, NATS

Senator John Madigan Victoria, IND

Senator the Hon Brett Mason Queensland, LP

Senator Christine Milne Tasmania, AG

Senator Fiona Nash New South Wales, NATS

Senator Stephen Parry Tasmania, LP

Senator Louise Pratt Western Australia, ALP

Senator Lee Rhiannon New South Wales, AG

Senator the Hon Michael Ronaldson Victoria, LP

Senator Scott Ryan Victoria, LP

Senator Rachel Siewert Western Australia, AG

Senator Arthur Sinodinos AO New South Wales, LP

Senator Glenn Sterle Western Australia, ALP

Senator Larissa Waters Queensland, AG

Senator John Williams New South Wales, NATS

Senator Penny Wright South Australia, AG

55

Secretariat Mr Tim Bryant, Secretary Ms Kate Campbell, A/g Research Officer

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

56

TABLE OF CONTENTS

Membership of Committee iii

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

Budget Estimates 2013–14: Report to the Senate ............................................ 1

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

Portfolio structures and outcomes .......................................................................... 1

General comments .................................................................................................. 2

Questions on notice ................................................................................................ 2

Note on references .................................................................................................. 3

Procedural issues .................................................................................................... 3

Public interest immunity claims ............................................................................. 3

Record of proceedings ............................................................................................ 3

Matters raised – Industry, Innovation, Science, Research and Tertiary Education portfolio .................................................................................................................. 3

Matters raised – Resources, Energy and Tourism portfolio ................................... 9

Matters raised – Treasury Portfolio ...................................................................... 10

Appendix 1: Index to proof Hansard transcripts .......................................... 19

Monday 3 June 2013 ............................................................................................ 19

Tuesday 4 June 2013 ............................................................................................ 19

Wednesday 5 June 2013 ....................................................................................... 20

Thursday 6 June 2013 ........................................................................................... 20

Appendix 2: Tabled documents and additional information received ........ 21

Appendix 3: Industry, Innovation, Science, Research and Tertiary Education portfolio structure .......................................................................... 23

Appendix 4: Resources, Energy and Tourism portfolio structure and outcomes ............................................................................................................. 25

Appendix 5: Treasury portfolio structure and outcomes ............................. 27

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vii

Abbreviations

DCCEE Department of Climate Change and Energy Efficiency

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

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

DRET Department of Resources, Energy and Tourism

GST Goods and services tax

MYEFO Mid-year Economic and Fiscal Outlook

NDIS National Disability Insurance Scheme

OECD Organisation for Economic Cooperation and Development

PEFO Pre-Election Fiscal Outlook

SES Senior Executive Service

TAFE Technical and further education

VET Vocational education and training

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Budget Estimates 2013–14

Report to the Senate

Introduction

1.1 On 14 May 2013 the Senate referred to the Senate Economics Legislation Committee (the committee) for examination and report the following documents in relation to the Industry, Innovation, Science, Research and Tertiary Education; Resources, Energy and Tourism; and Treasury portfolios:

• Particulars of proposed expenditure in respect of the year ending on

30 June 2014 [Appropriation Bill (No. 1) 2013–2014]; and

• Particulars of certain proposed expenditure in respect of the year ending on 30 June 2014 [Appropriation Bill (No. 2) 2013–2014].1

1.2 The committee is required to report to the Senate on its consideration of the 2013-14 Budget Estimates on 25 June 2013.2

Portfolio structures and outcomes

1.3 The committee notes that due to the machinery of government changes of March 2013 and the subsequent amendment of the Administrative Arrangements Order, the Department of Climate Change and Energy Efficiency (DCCEE) was abolished and the Climate Change functions transferred to the Department of Industry, Innovation, Science, Research and Tertiary Education (DIISRTE), thus creating the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education (DIICCSRTE).

1.4 Despite this change, the portfolio coverage of the committee remains unchanged (that is, Industry, Innovation, Science, Research and Tertiary Education) due to a motion passed in the Senate on 15 June 2013 determining that responsibility for climate change would stay with the Senate Environment and Communications Committee.3

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

1 Journals of the Senate, No. 144, 14 May 2013, p. 3915.

2 Journals of the Senate, No. 121, 1 November 2012, p. 3239

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

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1.6 The complete structures and outcomes for each portfolio are summarised in the appendices as indicated below:

• Industry, Innovation, Science, Research and Tertiary Education (Appendix 3);

• Resources, Energy and Tourism (Appendix 4); and

• Treasury (Appendix 5).

General comments

1.7 The committee received evidence from Senator the Hon. Don Farrell, Minister for Science and Research and the Minister Assisting for Tourism; Senator the Hon. Joe Ludwig, Minister for Agriculture, Fisheries and Forestry and Minister Assisting with Queensland Flood Recovery; Senator the Hon. Kate Lundy, Minister Assisting for Industry and Innovation, Minister for Multicultural Affairs and Minister for Sport; Senator the Hon. Matt Thistlethwaite, Parliamentary Secretary for Pacific Island Affairs and Parliamentary Secretary for Multicultural Affairs; Senator the Hon. Penny Wong, Minister for Finance and Deregulation; and officers from the Industry, Innovation, Science, Research and Tertiary Education; Resources, Energy and Tourism; and Treasury portfolios.

1.8 The committee thanks the ministers and officers who attended the hearings for their assistance.

1.9 The committee conducted hearings over four days, from 3 to 6 June 2013. In total the committee met for almost 40 hours (excluding breaks).

Questions on notice

1.10 The committee draws the attention of all departments and agencies to the deadline of 19 July 2013 for the receipt of answers to questions taken on notice from this round of Budget Estimates. As the committee is required to report before this date, this report has been prepared without reference to any of these responses. Indices of questions taken on notice during and after the hearings will be available from the committee website.

1.11 Answers to questions on notice taken in relation to the 2012-13 Additional Estimates hearings were due to be provided to the committee by 5 April 2013. The committee notes that none of the three portfolios were successful in submitting all

of their answers on time. The committee notes that the Resources, Energy and Tourism portfolio and the Industry, Innovation, Science, Research and Tertiary Education portfolio both submitted all answers before the commencement of the 2013–14 Budget Estimates hearings (by 21 May 2013 and 31 May 2013 respectively). Treasury has 39 answers from the 2012-13 Additional Estimates round still outstanding, as well as 13 questions from the 2012-13 Budget Estimates and nine from the 2012-13 Supplementary Estimates.

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Note on references

1.12 References to Hansard page numbers in this report relate to the proof transcript and may vary between the proof and official Hansard transcripts.

Procedural issues

1.13 There was a brief discussion on 5 June about whether the naming of an Australian Tax Office employee in relation to an incident involving Twitter was appropriate. It was decided, however, that as the employee had revealed his own name in the media and that the matter had previously been discussed in a hearing of the Senate Finance and Public Administration Committee, it was not problematic in discussing further the issues generated by the incident.4

Public interest immunity claims

1.14 On 13 May 2009 the Senate passed an order relating to public interest immunity claims.5 The order, moved by Senator Cormann, sets out the processes to be followed if a witness declines to answer a question. The full text of this order was provided to departments and agencies prior to the hearings and was also incorporated in the Chair's opening statements on each day of the hearings.

Record of proceedings

1.15 This report does not attempt to analyse the evidence presented over the four days of hearings, rather it seeks to present a brief list of the issues in each portfolio that were discussed by the committee.

1.16 Copies of the Hansard transcripts and documents tabled at the hearings (see Appendix 2) are available on the committee website. These documents are also tabled with this report for the information of the Senate.

Matters raised – Industry, Innovation, Science, Research and Tertiary Education portfolio

1.17 On 3 June 2013 the committee examined the estimates for the:

• Australian Nuclear Science and Technology Organisation (ANSTO);

• IP Australia;

• Commonwealth Scientific and Industrial Research Organisation (CSIRO);

• Australian Research Council (ARC);

• Office of the Chief Scientist;

4 Proof Hansard, 5 June 2013, p. 61.

5 Journals of the Senate, No. 68, 13 May 2009, p. 1941.

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• Tertiary Education Quality and Standards Agency (TEQSA);

• Australian Skills Quality Authority (ASQA);

• Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education [Outcome 3: Tertiary Education]; and

• Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education [Outcome 2: Science and Research].

1.18 Matters examined included the following:

Australian Nuclear Science and Technology Organisation (ANSTO)

• PETNET and competitive neutrality issues, specifically ANSTO's current

views on the matter and the current federal court case with Cyclopharm (pp 5-6);

• assumptions on the value of the global market in relation to the investment in the synroc and molybdenum plant (pp 7-8);

• trends in the cost of nuclear fuel (p. 8); and

• issues relating to the health and safety workplace culture at ANSTO,

including current legal proceedings with current or former ANSTO employees, staffing levels and matters related to Comcare cases (pp 8-10).

IP Australia

• recovery of moneys owed to the Commonwealth through the cancellation of 'evergreen' patents for Venlafaxine and Clopidogrel (pp 10-11); and

• processes for completing claims (pp 12-13).

Commonwealth Scientific and Industrial Research Organisation (CSIRO)

• reappointment of Dr Megan Clark, Chief Executive of the CSIRO (pp 13-17);

• independent review into workplace culture within the organisation (pp 17-18);

• potential impact of reduced funding on staffing levels (pp 18-19, 25, 28-29);

• internal investigation into the matter of chemicals sold to Novartis (pp 20-22);

• allegations of workplace bullying and harassment and levels of staff

discontent (pp 22-24, 26);

• partnership between the CSIRO and the University of Tasmania in relation to

the Centre for Food Innovation (pp 24-25); and

• impact of reduced industry investment in the organisation and future plans for engagement with industry (pp 19, 25, 27-28).

Australian Research Council (ARC)

• exclusion of theology colleges from ARC grants (p. 30);

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• concerns raised by the National Tertiary Education Union about the

Excellence in Research Australia process (pp 30-32);

• ARC mechanisms to prevent instances of abuse of ARC research funding (pp 32-33); and

• the impact of gaming strategies on the trajectory of early-career researchers (pp 33-34).

Office of the Chief Scientist

• release date, focus and funding level of the new science and technology

strategy (p.35);

• policy recommendations to improve collaboration between universities and the private sector (pp 36-37);

• meetings of the Chief Scientist with the Prime Minister and reports to ministers (p. 37);

• views on the reduced investment in science by business (p. 37);

• progress update on the establishment of expert working groups relating to

strategic research priorities (p. 38); and

• matters relating to the research workforce (p. 39).

Tertiary Education Quality and Standards Agency (TEQSA)

• staffing matters, including turnover rates, vacancies and an alleged increase in bureaucratisation (pp 40-41);

• TEQSA's opinion on whether there is a need for legislative reform in regards to the Education Services for Overseas Students Act 2000 and the TEQSA Act 2011 (p. 42);

• potential impact of the cost of red tape on the higher education sector (pp 42-43);

• proposed timeline and methodologies for the planned review of all teaching courses by TEQSA (pp 45-46);

• feedback from overseas regulatory agencies in regards to TEQSA's operations (pp 46-47);

• issues relating to staff representation on higher education provider governing

bodies (pp 47-48);

• potential impact of the efficiency dividend on providers (pp 48-49);

• rationale for the Productivity Commission undertaking payroll work for TEQSA (p. 50); and

• recent public consultation regarding TEQSA's approach to the public reporting of regulatory decisions (p. 50).

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Australian Skills Quality Authority (ASQA)

• staffing matters relating to office space, salaries and audits (pp 52-53);

• complaints received by ASQA from consumers in relation to the quality of training providers and from providers dissatisfied with the audit process, including numbers received and the subsequent verification processes used to address the issues (pp 54-56);

• current percentage of revenue coming from cost recovery (pp 56-57);

• issues in Victoria and South Australia relating to the TAFE system, registered

training organisation compliance, the increase of private Vocational education training (VET) providers (pp 57-61); and

• ASQA's response to the concerns of the Australian Workforce and

Productivity Agency about the decrease in TAFE funding and the ongoing quality of the VET system, including the possibility of a review (pp 61-62).

Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education [Outcome 3: Tertiary Education]

• matters relating to Youth Allowance and Independent Youth Allowance,

including eligibility thresholds, the parental income cap and income-contingent loans (pp 62-65);

• issues facing rural and regional students, specifically participation rates, debt levels and relocation costs (pp 63-64);

• impact of the efficiency dividend on regional universities (p. 66);

• implementation of the planned increase in the number of Commonwealth

supported places in postgraduate and sub-bachelor courses (pp 66-67);

• matters relating to the AsiaBound Grants Program, including the exclusion of university consortia and private mobility firms, application numbers and the promotion of the program to students (pp 68-69);

• progress on recommendations made in the 2013 Australia-Educating Globally

report into international education (pp 69-70);

• education counsellor posts overseas (pp 70-71);

• impact of the efficiency dividend on higher education (pp 72-74);

• specific matters relating to the Swinburne University of Technology (pp 74-75);

• issues relating to start-up loans for individuals receiving student income support, including analysis of take up rate, impact on the rate of university enrolment of low socio-economic status students and expected timeframes for repayment (pp 76-78);

• questions regarding the responsibility of universities to clearly articulate the

band levels and costs of subjects for students (pp 79-82);

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• analysis of the implications of funding arrangements for the TAFE systems in

Victoria, New South Wales and Queensland (pp 82-87);

• current and future per student university funding, broken down into government and student contributions (pp 87-88);

• impact of cuts announced in the budget and Mid-year Economic and Fiscal Outlook (MYEFO) on the international position of Australia in OECD rankings of public higher education spending (pp 88-89);

• matters relating to student debt levels (pp 89-90);

• Education Investment Fund, including current balance and responses to policy

criticisms (pp 90-91); and

• issues around university reporting requirements, including the independent

review by Professors Kwong Lee Dow AO and Valerie Braithwaite and the basis of the phrase 'earned autonomy' (pp 93-95).

Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education [Outcome 2: Science and Research]

• matters relating to international science collaboration, including responses to

criticism from the Australian Academy of Science and future plans to improve coordination and cooperation in the area (pp 96-97);

• science and innovation counsellors (pp 97-98);

• Cooperative Research Centre funding (pp 98-99);

• plans for the implementation of a science integrity charter (p. 99);

• clarification of the responsibilities of Minister Emerson and Minister Farrell

in regards to science (p. 100);

• update on the progress, funding and benefits of the Square Kilometre Array project (pp 100-105);

• current total expenditure on Research and Development (p. 105);

• relationships between precincts and enhancing science and research outcomes

(pp 105-106);

1.19 On 4 June 2013 the committee examined the estimates for the:

• Department of Industry, Innovation, Climate Change, Science, Research and

Tertiary Education [Outcome 1: Industry and Innovation]; and

• Department of Industry, Innovation, Climate Change, Science, Research and

Tertiary Education [Small Business].

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1.20 Matters examined included the following:

Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education [Outcome 1: Industry and Innovation]

• March 2013 machinery of government changes leading to the incorporation of

the Climate Change functions into the department (p. 4);

• matters relating to the Australian automotive industry and related schemes,

including the potential impact of the decision by Ford to close its Australian manufacturing operations in 2016, effectiveness of government assistance to the industry, future risks to jobs, transferability of industry skills, the impact of the carbon price, the Automotive Transformation Scheme and the Green Car Innovation Fund (pp 4-28);

• Research and Development tax incentives, including the number of firms registered and the impact of the decision to restrict access for larger companies (pp 29-33, 36-38);

• Clean Energy Technology Fund (p. 33);

• matters relating to the Australian food industry, including statistics relating to

food manufacturing, industry assistance and the meat industry (pp 33-35);

• business review processes of Enterprise Connect (pp 35-36);

• specifics of the Australian Jobs Plan, including cost, consultation processes, implementation strategies, the appointment of Australian Industry Opportunity Officers, the creation of the new Australian Industry Participation Authority and the issue of designated funds for an information campaign due to be spent before June 30 2013 (pp 38-44, 50-52);

• clean technology programs, including funding, payout schedules and application processes (pp 45-47);

• Steel Transformation Plan funding (pp 47-48);

• government assistance to industry in general terms and in specific instances,

including to the textile, clothing and footwear sector, wood, metal and agricultural industries (pp 48-49, 53-54);

• issues stopping Australian steel and engineering workshops bidding on

projects (pp 52-53); and

• Manufacturing Technology Innovation Centre funding (p. 55).

Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education [Small Business]

• update on the work of the Australian Small Business Commissioner

(pp 55-56);

• forward funding for the program (pp 57-58); and

• the relationship between the department and the office of the Small Business Commissioner and the nature of briefings provided to ministers (pp 58-59).

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Matters raised – Resources, Energy and Tourism portfolio

1.21 On 3 June 2013 the committee examined the estimates for the:

• Department of Resources, Energy and Tourism [Resources and Energy]; and

• Geoscience Australia.

1.22 Matters examined included the following:

Department of Resources, Energy and Tourism [Resources and Energy]

• March 2013 machinery of government changes leading to the incorporation of

the Energy Efficiency functions into the department (p. 109);

• issues relating to the Kimberley liquefied natural gas precinct, processing at James Price Point and Woodside (pp 109-110);

• acreage release (pp 110-111);

• delays in onshore project approvals, including trends, benchmarks and

applicant feedback (pp 111-112);

• matters in relation to coalmining, including feedback received by the

department regarding levels of financial stress that Australian coal mines are currently operating under and progress of the Gorgon project in Western Australia (pp 113-114);

• the impact of 457 visas on resource sector projects (pp 114-115);

• issues relating to 'legacy debts' stemming from energy efficiency programs,

including the amount of funds outstanding and the steps being taken to recover them (pp 115-116)

• Charities Maritime and Aviation Support Program (pp 116-117)

• the impact on the Global Carbon Capture and Storage Institute and related flagship programs from the reductions in funding over the forward estimates (p. 117);

• progress of a CSIRO report on residential energy efficiency commissioned by

the department (pp 117-118);

• progress of plans to secure a volunteer site and undertake initial scoping and

design work to establish a regional consultative committee for the national radioactive waste dump (pp 118-119); and

• issues relating to the Toro Energy-Wiluna uranium project in Western

Australia (p. 119).

Geoscience Australia

• main findings of the Australian Gas Resource Assessment 2012 , particularly in relation to the increasing role of gas in the Australian and global energy mix and the commercial viability of accessing the gas in the short and medium term (p. 120); and

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• 2013 acreage release (p. 121).

1.23 On 4 June 2013, the committee examined the estimates for:

• the Department of Resources, Energy and Tourism [Tourism] and Tourism Australia.

1.24 Matters examined included the following:

Department of Resources, Energy and Tourism [Tourism] and Tourism Australia

• role and responsibilities of the secretary of the department (p. 63);

• impact of recent machinery of government changes on departmental SES

staffing, including appointment processes and the suitability of senior officers for their positions (pp 63-71);

• release details and main issues covered in The economic impact of the current

mining boom on the Australian tourism industry report (pp 71-74); and

• matters relating to the inbound tour operator program, with specific regard to

group leisure tourists from China (p. 74).

Matters raised – Treasury Portfolio

1.25 On 4 June 2013 the committee examined the estimates for the:

• Australian Securities and Investments Commission (ASIC);

• Australian Bureau of Statistics (ABS);

• Australian Competition and Consumer Commission (ACCC); and

• Australian Prudential Regulation Authority (APRA).

1.26 Matters examined included the following:

Australian Securities and Investments Commission (ASIC)

• issues relating to ASIC's actions under Section 313 of the

Telecommunications Act 1997 to block websites run by criminal syndicates engaged in investment scams, including specific details of past blockings, strategies to handle future occurrences and ASIC's commitment to public and transparent reporting on the matter (pp 79-80, 90-93);

• ASIC's handling of the alleged misconduct by Commonwealth Financial

Planning with specific reference to the length of time ASIC took to act on information received from a whistleblower (pp 80-82, 97-98);

• details on the implementation of the Treasury Amendment Legislation

(Unclaimed Money and Other Measures) Act 2012, including the amount of unclaimed money ASIC currently holds, ASIC's role in reuniting people with their money and the processes and timeframes involved in this (pp 83-85, 95-96);

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• consideration of the proposed changes to the Tax Agent Services Act 2009

(pp 84-86);

• details related to the May 2013 ASIC regulation of registered liquidators: January to December 2012 report, including proactive practice reviews, transaction reviews and inadequate declarations (pp 86-87);

• the dropped investigation into Wellington Capital (pp 87-88);

• suspension clauses and the possibility of a gap in the legislative and administrative framework for the supervision of the Australian banking system (p. 88);

• Sunland Group waterfront development in Dubai (pp 88-90);

• dialogue between ASIC and the banking industry regarding deceptive or

misleading advertising (pp 93-94);

• update of ASIC's actions in responding to the 17 recommendations set out in

the 2010 report into liquidators and administrators by the Senate Economics References Committee (p. 94);

• trends in insolvency law in the United Kingdom (p. 95); and

• ASIC's perspective on high frequency trading issues (pp 98-99).

Australian Bureau of Statistics (ABS)

• potential consequences of errors in intercensal population increase projections (pp 99-100);

• planning for 2016 census, including details on design and

consultation (pp 100-101);

• cancellation of the 2013 Work, Life and Family Survey program, including

rationale for cancellation, potential negative impacts and other avenues available for collecting similar information (pp 101-102, 104);

• statistics and methodologies used in the Completing the picture:

environmental accounting in practice report (pp 103-104); and

• the impact of the efficiency dividend on the ABS (p. 104).

Australian Competition and Consumer Commission (ACCC)

• progress of the ACCC investigations into supermarkets, with particular

reference to the shopper docket, unconscionable conduct and supplier relationship issues (pp 105-107, 110, 117);

• use of compulsory information-gathering powers in investigations

(pp 107-109);

• current investigations into union boycotts, specifically the Grocon matter (pp 109-11);

• material used in the ACCC draft determination relating to Qantas and

Emirates (pp 111-112);

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• ACCC's role in relation to Australian standards, competition and consumer

product safety (pp 112-114);

• progress on issues relating to free-range egg and other product guidelines (pp 114-116);

• ACCC's role in the development of a code of conduct for supermarkets (pp 116-117);

• wording of Section 46 of the Competition and Consumer Act 2010 (p. 118);

• potential acquisition of a collapsed Barossa Valley winery by Woolworths

(pp 118-119); and

• clarification of comments by Mr Rod Sims, ASIC Chairman, around the role of court actions (pp 119-121).

Australian Prudential Regulation Authority (APRA)

• progress update and issues relating to the implementation of Basel III in

Australia (pp 122-125);

• funding arrangements for APRA (pp 124-125);

• update on the MySuper authorisation process, specifically the number and

outcomes of applications received; and

• details on APRA reporting requirements for superannuation funds, including

timeframes, increased requirements and transition arrangements (p. 129).

1.27 On 5 June 2013 the committee examined the estimates for the:

• Treasury [Fiscal Group];

• Commonwealth Grants Commission;

• Inspector-General of Taxation;

• Treasury [Revenue Group]; and

• Australian Taxation Office.

1.28 Matters examined included the following:

Treasury [Fiscal Group]

• total face value of Commonwealth government securities subject to the limit in the Commonwealth Inscribed Stock Act 1911 (p. 5);

• basis for the predicted increased in the underlying cash balance in 2021-2022

(p. 6);

• impact on the cost of debt if yields on government securities returned to more

normal levels (p. 60);

• possibility of an update to the Pre-election Economic and Fiscal Outlook

(PEFO), particularly in relation to outstanding non-legislated expenditure and revenue measures in previous budgets (p. 8);

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• progress of the National Injury Insurance Scheme (pp 10-13);

• issues relating to the current legislated debt ceiling (pp 13-17);

• comparison of current levels of Commonwealth government debt to the remainder of the developed world and the appropriate use of the term 'net debt' (pp 17-19, 20);

• technical explanation of the difference between fiscal discipline and fiscal

austerity (p. 19, 20-21);

• rates accessed for the funding of the farm assistance package (pp 22-23);

• changed predictions of the 2013-14 underlying cash balance (pp 23-24);

• matters relating to carbon modelling, including projection methodology, international carbon price estimates over the forward estimates, advance sales of permits, analysis of the provision of cash compensation to private generators, the future of an international carbon price and its potential impact on compensation packages, criticisms of the clean energy package, the impact of European economic situation on carbon price modelling, the state of Australian emissions since the introduction of the carbon price, and the importance of taking into account long-term factors in projecting future levels of the carbon price (pp 24-37);

• activities of the Clean Energy Finance Corporation, including their investment processes and role in developing and educating the market (pp 37-45); and

• the Gonski reforms, including the provision of Average Government School Recurrent Costs estimates for 2014-19 by state treasuries (pp 46-51).

Commonwealth Grants Commission (CGC)

• key findings and important features of the 2013 report into GST relativities, the process in regards to terms of reference and the exclusion of reward payments under the national partnership agreements (p. 51);

• impact of stamp duty base changes, particularly the significant differential

between Queensland and New South Wales (p. 52);

• data sources utilised by the CGC (pp 52-53);

• impact of the National Disability Insurance Scheme (NDIS) on GST

relativities (p. 53); and

• the process for determining the GST (p. 55).

Inspector-General of Taxation

• current work program, including the four reviews in progress (pp 55-56);

and

• the impact of the efficiency dividend on the budget, staffing levels and work

program of the Inspector-General of Taxation (p. 56).

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Treasury [Revenue Group] and the Australian Taxation Office (ATO)

• monetary impact of the alcopops tax and the luxury car tax (pp 57-58);

• matters relating to the Minerals Resource Rent Tax, including the basis for predicting an increase in revenue over the forward estimates, the impact of royalty rebates and the revenue reduction from the low-profit threshold (pp 58, 84-86);

• predictions of an increase in the volumes of iron ore exports for the period 2012-13 to 2016-17 (pp 59-60);

• ATO policies on the use of social media by employees, including ATO's

response and internal disciplinary process in relation to a specific incident on Twitter involving an ATO employee and a member of the public (pp 60-66);

• unscheduled employee absences within the ATO, including statistics and action plans (pp 66-67);

• differences between a leased property and a licence fee on a property

(pp 67-68);

• questions around the calculation of estimates for the Research and

Development tax incentive (p.68);

• managed investment trusts and the establishment of the Trust Task Force

(pp 68-70);

• the Secrecy Jurisdictions, the ASX 100 and Public Transparency report by the

Uniting Church (pp 70-71);

• evidence of aggressive tax structures that shift profits by artificially loading

debt into Australia (pp 71-72);

• dividend washing (p. 72);

• 10 year breakdown of the revenue collected by the increase in the Medicare

levy (pp 72-73);

• Wine Equalisation Tax (pp 73-76);

• matters relating to the Australian Valuation Office, including training programs and accreditation processes, rebranding strategy costs and budget funding (pp 76-78);

• specifics of carbon tax revenue assumptions, including the advance selling of permits over the forward years and fuel tax credits (pp 78-80, 103-105);

• revenue measures in the current and previous budgets expected to remain non-legislated by the end of June 2013 (p. 80);

• details of and implementation of superannuation measures relating to earnings on assets supporting income streams in excess of $100,000 a year for individuals (pp 80-84, 87, 91-93);

• ATO actions in looking at to what extent companies which operate in Australia have subsidiaries in tax havens (pp 86-88);

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• work of the Australian Charities and Not-for-profit Commission (pp 87-91);

• superannuation concessional contribution caps (pp 93-94);

• Treasury and ATO Tax and Superannuation Protocol joint accountability statements (pp 94-95);

• removal of the capital gains tax for non-resident individuals (pp 97-98);

• progress in the production of a comprehensive national estimate of the tax gap

(p. 100);

• status of the post-implementation review in relation to the Tax Agent Services

Act 2009 (p. 100) ;

• reasons for the increase in the amount of tax in dispute as at 31 March 2013 (p. 101);

• recent report by the Australian Office of National Assessments on the principles and procedures followed by Treasury and the ATO in preparing the annual tax expenditures statement (p.102); and

• the possibility of the ATO flagging with ASIC the early warning signs of

companies with government contracts trading insolvent (pp 105-107).

1.29 On 6 June 2013, the committee examined the estimates for the:

• Treasury [Macroeconomic Group];

• Treasury [Markets Group] ;

• Australian Office of Financial Management (AOFM); and

• Productivity Commission.

1.30 Matters examined included the following:

Treasury [Macroeconomic Group]

• state of the Australian economy, including living standards, employment rates, housing prices, growth and investment levels and the exchange rate (pp 4-5, 7-8, 13-14, 15-16);

• Treasury comment on press reports that Western Australia is in recession and

other mining investment related issues (pp 5-6, 10-11);

• issues relating to the PEFO (pp 12-13);

• potential impact of quantitative easing on Australia and other G20 countries

(pp 16-17);

• impact of the economic situation in Europe and Asia on Australia

(pp 17-21, 37);

• matters relating to staffing at Treasury, including levels, allocations,

redundancies, recruitment and graduate intake (pp 22-24, 26-27);

• potential impact of extracting minerals at a more moderate pace (pp 24-26);

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• AAA ratings (p. 26);

• Treasury's work on the blue and red books (pp 27-28);

• current state of the labour market, lowest sustainable rate of unemployment and trends in real unit labour costs and labour participation

(pp 28-30, 33-35);

• implications of the economic situation in China on Australia (pp 32, 37);

• matters relating to the effectiveness of monetary policy (pp 35-36); and

• the potential negative impacts of sharp cutbacks in public service employment

on the Australian Capital Territory economy in the short to medium term (pp 38-39).

Treasury [Markets Group]

• matters relating to the issue of unclaimed money, including special rules or exemptions for certain kinds of bank accounts, timeframes for the release of money back to individuals and the benefits of the measure (pp 39-40);

• questions relating to the media release by the Minister for Financial Services

in relation to the earthquake in Victoria on 19 June 2012 (pp 40-49);

• Mental Health and Insurance Working Group (pp 49-50);

• matters relating to the NDIS (pp 50-52);

• Treasury's role in responses to the Trio collapse (pp 52-53);

• Investment Manager Regime (pp 54-56);

• work of the Corporations and Market Advisory Committee (pp 56-57);

• status of the Financial Centre Taskforce (pp 57-58);

• progress of the Asian region funds passport policy measure (pp 58-59);

• possible national reinsurance pool in the context of natural disaster insurance (pp 59-60);

• Board of Taxation's recommendations in a 2011 report on Islamic finance (p. 60);

• matters relating to the work of the Foreign Investment Review Board, including staffing levels and processes for considering applications (pp 61-64);

• current costs of funds to banks, with reference to the differences that major banks face compared to second-tier bank (pp 65-66);

• current amount of business being written in the securitisation market

(p. 66); and

• recent developments in the housing market (p. 67).

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Australian Office of Financial Management (AOFM)

• Australian bond yields (pp 67-68);

• the status and future trends of the residential mortgage-backed security market (pp 68-69); and

• net interest payments (pp 69-70)

Productivity Commission

• staffing levels, budget allocation and workload (pp 71-73);

• issues relating to a draft report by the Productivity Commission on mineral

and energy resource exploration (pp 73-75); and

• safeguard processes and investigations (pp 76-80).

Senator Mark Bishop Chair

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Appendix 1

Index to proof Hansard transcripts

Monday 3 June 2013

Industry, Innovation, Science, Research and Tertiary Education portfolio

Australian Nuclear Science and Technology Organisation (ANSTO) 5

IP Australia 10

Commonwealth Scientific and Industrial Research Organisation (CSIRO) 13

Australian Research Council (ARC) 29

Office of the Chief Scientist 35

Tertiary Education Quality and Standards Agency (TEQSA) 40

Australian Skills Quality Authority (ASQA) 52

Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education [Outcome 3: Tertiary Education] 62

Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education [Outcome 2: Science and Research] 96

Resources, Energy and Tourism portfolio

Department of Resources, Energy and Tourism [Resources and Energy] 108

Geoscience Australia 120

Tuesday 4 June 2013

Industry, Innovation, Science, Research and Tertiary Education portfolio (continued)

Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education [Outcome 1: Industry and Innovation] 4

Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education [Small Business] 55

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Resources, Energy and Tourism portfolio (continued)

Department of Resources, Energy and Tourism [Tourism] and Tourism Australia 63

Treasury portfolio

Australian Securities and Investments Commission (ASIC) 79

Australian Bureau of Statistics (ABS) 99

Australian Competition and Consumer Commission (ACCC) 104

Australian Prudential Regulation Authority (APRA) 121

Wednesday 5 June 2013

Treasury portfolio (continued)

Treasury [Fiscal Group] 5

Commonwealth Grants Commission (CGC) 51

Inspector General of Taxation 55

Treasury [Revenue Group] and Australian Taxation Office (ATO) 57

Thursday 6 June 2013

Treasury portfolio (continued)

Treasury [Macroeconomic Group] 4

Treasury [Markets Group] 39

Australian Office of Financial Management (AOFM) 67

Productivity Commission 71

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Appendix 2

Tabled documents

Industry, Innovation, Science, Research and Tertiary Education portfolio

1. Answers from the Australian Skills Quality Authority in relation to questions on notice from Senator Fiona Nash; received from Mr Robert Griew, Associate Secretary, Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education on 3 June 2013.

Treasury portfolio

2. Opening statement; received from Mr Peter Kell, Deputy Chairman, Australian Securities and Investments Commission on 4 June 2013.

3. 'Chart 1: Making Room for the National Plan for School Improvement and DisabilityCare Australia', 'Chart 2: National Plan for School Improvement' and 'Chart 3: DisabilityCare Australia'; received from Mr Nigel Ray, Executive Director, Fiscal Group, Treasury on 5 June 2013.

4. 'Commonwealth Government Securities (CGS) on issue subject to legislative limit'; received from Mr Nigel Ray, Executive Director, Fiscal Group, Treasury on 5 June 2013.

5. Opening statement; received from Ms Jillian Broadbent AO, Chair, Clean Energy Finance Corporation on 5 June 2013.

6. 'Clean Energy Finance Corporation Investment Policies'; received from Ms Jillian Broadbent AO, Chair, Clean Energy Finance Corporation on 5 June 2013.

7. 'Group staffing levels since 2004-5 projected to 2016-17'; received from Dr Martin Parkinson PSM, Secretary, Treasury on 6 June 2013.

8. 'Australian Treasury Bond Yields'; received from Mr Rob Nicholl, Chief Executive Officer, Australian Office of Financial Management on 6 June 2013.

9. 'Understanding CBA/Bankwest Benefits'; received from Senator Alan Eggleston on 4 June 2013.

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Additional information

Industry, Innovation, Science, Research and Tertiary Education portfolio

1. Letter of correction relating to evidence given on 3 June 2013 by Mr Mike Whelan, Deputy Chief Executive Operations, Commonwealth Scientific and Industrial Research Organisation; received 5 June 2013.

2. Letter of correction relating to evidence given on 3 June 2013 by Dr Megan Clark, Chief Executive and Ms Hazel Bennett, Chief Finance Officer, Commonwealth Scientific and Industrial Research Organisation; received 17 June 2013.

Resources, Energy and Tourism portfolio

3. Letter of correction relating to evidence given on 3 June 2013 by Mr Chris Pigram, Chief Executive Officer, Geoscience Australia; received 13 June 2013.

Treasury portfolio

4. Letter of correction relating to evidence given on 5 June 2013 by Ms Susan Pascoe AM, Commissioner, Australian Charities and Not-for-profit Commission; received 7 June 2013.

5. 'Report 331: Dark liquidity and high-frequency trading'; report referred to in evidence given on 4 June 2013 by Mr John Price, Commissioner, Australian Securities and Investment Commission; received 19 June 2013.

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Appendix 3

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

Source: Portfolio Budget Statements 2013-14 , Industry, Innovation, Science, Research and Tertiary Education portfolio, pp 8-9.

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84

Appendix 4

Resources, Energy and Tourism portfolio structure and outcomes

Source: Portfolio Budget Statement 2013-14, Resources, Energy and Tourism portfolio, p. 6.

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86

Appendix 5

Treasury portfolio structure and outcomes

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Source: Portfolio Budget Statement 2013–14, Treasury portfolio, pp 6-7.

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The Senate

Education, Employment and Workplace Relations Legislation Committee

Budget estimates 2013–14

June 2013

89

© Commonwealth of Australia 2013 ISBN 978-1-74229-862-7

This

document was produced by the Senate Education, Employment and Workplace Relations Secretariat and printed by the Senate Printing Unit, Parliament House, Canberra.

90

Senate Standing Committee on Education, Employment & Workplace Relations

LEGISLATION COMMITTEE

Membership of the Committee

Senator Gavin Marshall, Chair Victoria, ALP

Senator Chris Back, Deputy Chair Western Australia, LP

Senator Catryna Bilyk Tasmania, ALP

Senator Bridget McKenzie Victoria, Nats

Senator the Hon. Kim Carr Victoria, ALP

Senator Lee Rhiannon New South Wales, AG

Senators in attendance

Senators Abetz, Boyce, Cash, Edwards, Gallacher, Lines, Ludlam, Mason, Nash, Ronaldson, Siewert, Sinodinos, Sterle, Wright and Xenophon.

Secretariat

Mr Tim Watling, Secretary

Ms Bonnie Allan, Principal Research Officer

Ms Nerissa Stewart, Senior Research Officer

Mr Isaac Overton, Research Officer

Ms Sarah Bainbridge, Administrative Officer

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

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92

TABLE OF CONTENTS

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

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

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

Portf

olio coverage .................................................................................................. 1

Hearings .................................................................................................................. 1

Public inte

rest immunity claims ............................................................................. 2

Questions on notice ................................................................................................ 3

Note on Hansard page referencing ......................................................................... 3

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

Education, Employment and Workplace Relations portfolio .............................. 5

Fair Work Ombudsman .......................................................................................... 6

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

Department of Education, Employment and Workplace Relations – Outcome 3: Enhanced employability and acquisition of labour market skills .......................... 9

Department of Education, Employment and Workplace Relations – Outcome 4: Safer, fairer and more productive workplaces ..................................................... 10

Depart

ment of Education, Employment and Workplace Relations – Cross Portfolio ...................................................................................................... 11

Australian Curriculum, Assessment and Reporting Authority ............................. 11

Australian Institute for Teaching and School Leadership .................................... 12

Department of Education, Employment and Workplace Relations – Outcome 1: Early childhood education ................................................................................... 13

Department of Education, Employment and Workplace Relations – Outcome 2: Schools and youth ................................................................................................. 13

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

Committee oversight of departments and agencies ............................................. 17

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

93

Statement by the Chair .......................................................................................... 19

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

Index to Proof Hansard transcripts ...................................................................... 21

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Chapter 1

Overview

1.1 The Senate Education, Employment and Workplace Relations Legislation Committee presents its report to the Senate.

1.2 On 14 May 20131 the Senate referred the following documents to the committee for examination and report in relation to the Education, Employment and Workplace Relations portfolio:

 Particulars of proposed expenditure in respect of the year ending on 30

June 2014.

 Particulars of certain proposed expenditure in respect of the year ending

on 30 June 2014.

 Particulars of proposed expenditure in relation to the parliamentary

departments in respect of the year ending on 30 June 2014.

1.3

Standing committees are required to report to the Senate on 25 June 2013. This report of the Education, Employment and Workplace Relations Legislation Committee is provided to the Senate in fulfilment of that requirement.

Portfolio coverage

1.4 The committee has responsibility for examining the expenditure and outcomes of the Education, Employment and Workplace Relations portfolio. Appendix 1 lists the department and agencies under this portfolio.

Hearings

1.5 The committee conducted four days of hearings, examining Employment and Workplace Relations outcomes and agencies on 3 and 4 June 2013 and Education outcomes and agencies on 5 and 6 June 2013. In total the committee met for 34 hours and 7 minutes, excluding breaks.

1.6 The following outcomes and agencies appeared before the committee:

 Outcomes 1 — 4;

 Fair Work Commission;

 Fair Work Ombudsman;

 Fair Work Building and Construction;

 Comcare;

1 Journals of the Senate No. 89, 14 May 2013, p. 3914.

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2

 Safe Work Australia;

 Australian Curriculum Assessment and Reporting Authority; and

 The Australian Institute for Teaching and School Leadership.

Public interest immunity claims

1.7 On 13 May 2009, the Senate passed an order relating to public interest immunity claims.2 The order sets out the processes to be followed if a witness declines to answer a question. The full text of this order has previously been provided to departments and agencies and was incorporated in the Chair's opening statement on the first day of the budget estimates hearing.

1.8 The issue of withholding information on the basis of legal professional privilege was raised during the hearing. On 4 June 2013, Mr Jeremy O'Sullivan, Chief Counsel in the Department of Education, Employment and Workplace Relations, stated during the hearings that:

As Chief Counsel I would not disclose the content of requests for advice to this committee as to do so would waive the legal professional privilege in that advice3

1.9 The Chair noted that similar statements had been raised in previous hearings, and had not been satisfactorily resolved. He said Mr O'Sullivan's refusal was unacceptable and made a statement the following day reiterating that the only basis for a witness withholding information from a Senate Committee is by making, and the committee accepting, a claim for public interest immunity.4 The Chair's statement, formulated on advice from the Clerk of the Senate, appears at Appendix 2. The Secretary, Ms Lisa Paul, responded to the Chair's statement saying:

Thank you for your comments and I will assure you now that the committee will pay very close attention to that question on notice in particular, and of course to the rules which you name, which are well known to us.5

2 Journals of the Senate, No. 68, 13 May 2009, p. 1941. The order was moved by Senator Cormann.

3 Proof Estimates Hansard, 4 June 2013, p. 81.

4 Proof Estimates Hansard, 5 June 2013, p. 37.

5 Proof Estimates Hansard, 5 June 2013, p. 37.

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Questions on notice

1.10 The committee has drawn the attention of the department and its agencies to the agreed deadline of Friday 19 July 2013 for the receipt of answers to questions taken on notice from this round, in accordance with Standing Order 26.

1.11 For this round, written questions on notice were received from Senators Back, Boyce, Ludlam, McKenzie, Nash, Siewert, Wright and Xenophon.

Note on Hansard page referencing

1.12 Hansard references throughout this report relate to proof Hansard page numbers. Please note page numbering may differ between the proof and final Hansard.

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Chapter 2

Education, Employment and Workplace Relations portfolio

2.1 This chapter summarises areas of interest and concern raised during the committee's consideration of budget estimates for the 2013–14 financial year. This section

of the report follows the order of proceedings and provides an indicative, but not exhaustive, coverage of issues examined.

2.2 The committee heard evidence on Monday 3 and 4 June from

the Parliamentary Secretary for School Education and Workplace Relations, Senator the Hon. Jacinta Collins along with officers from areas of the Department of Education, Employment and Workplace Relations (the department) and agencies responsible for employment and workplace relations, including:

 Comcare

 Safe Work Australia

 Fair Work Ombudsman

 Fair Work Commission

 Fair Work Building and Construction

2.3 On 5 and 6 June the committee heard evidence from Senator the Hon. Kate Lundy representing the Minister for School Education, Early Childhood and Youth, and Parliamentary Secretary for School Education and Workplace Relations Senator the Hon. Jacinta Collins, as well as officers from areas of the department and agencies responsible for administering education policy, including:

 Australian Curriculum, Assessment and Reporting Authority;

 Australian Institute of Teaching and School Leadership.

2.4 Senators present over the course of hearings were Senator Marshall (Chair), Senator Back (Deputy Chair), Senators Abetz, Bilyk, Kim Carr, Cash, Edwards, Gallacher, Lines, Ludlam, Mason, McKenzie, Nash, Ronaldson, Siewert, Sinodinos, Sterle, Wright and Xenophon.

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Fair Work Ombudsman

Section 457 visas

2.5 Senator Abetz led questioning of the Fair Work Ombudsman (FWO) raising some concerns about the FWO's involvement in regulating 457 visas. Issues raised by Senator Abetz included:

 the new role of the FWO in monitoring and enforcing compliance with 457 visa conditions;

 the capacity of the FWO to fulfil this new role and concerns over the degree to which the FWO was consulted by government before the decision was made to expand the Ombudsman's responsibilities;

 the operational and policy relationships between the FWO and the Department of Immigration and Citizenship as relating to 457 visa implementation;

 457 visa complaint statistics and issues concerning unpaid workers with visas.

Unpaid work and workplace flexibility arrangements

2.6 Senators also raised questions about complaints to the FWO in relation to vulnerable employees and unpaid work. In particular, the question of some businesses giving three-day trials to workers and then not offering full-time paid employment was raised. It was noted that there may be some businesses repeatedly engaging in this practice, cycling through voluntary trial employees and never engaging a full-time worker. Officers from the FWO reported that this would be a very concerning practice and would be appropriately investigated if reported. Officers noted that they would follow up with data and advice for the committee on previous cases of this nature.

2.7 Officers from the FWO also addressed questions regarding their publication: Best Practice Guide: Use of individual flexibility arrangements.3 Advice provided included: consultation that was undertaken in the lead up to its publication, the role of non-monetary benefits in flexibility arrangements and the rationale behind the legislation underlying the publication.

Fair Work Building and Construction

2.8 Senators began by questioning officers from Fair Work Building and Construction (FWBC) on operational efficiencies identified in the Education, Employment and Workplace Relations Portfolio Budget Statement (PBS). Officers noted that although FWBC would need to make some adjustments due to budget savings, investigations and enforcement would remain as the key focus of the agency.4

3 Proof Estimates Hansard, 3 June 2013, p. 27–28.

4 Proof Estimates Hansard, 3 June 2013, p. 35.

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They identified travel, media, public affairs, advertising, printing, publications and office space as areas that would be affected in meeting savings requirements. Senator Abetz expressed concern over FWBC's capacity to maintain performance of the agency's duties in the area of industrial disputation in light of the savings measures and the upward trend in the number of these disputes being brought before the agency.

2.9 Senator Bilyk questioned FWBC officers on operational data including: the number of investigations undertaken, proceedings involving civil penalties and compensation payments, timelines for dealing with investigations and how these statistics compared to FWBC's predecessor the Office of the Australian Building and Construction Commissioner (ABCC).5

2.10 Senator Bilyk also questioned FWBC on the legal proceedings involving the Grocon Myer Emporium site in Melbourne. FWBC noted that this matter was still before the courts. Following some of Senator Bilyk's questions, Senator Abetz questioned FWBC regarding penalties for contraventions imposed under the Fair Work Act in comparison with contraventions imposed by the ABCC. Senator Abetz noted that current penalties were less than half of that prescribed under the ABCC and voiced concern that the lesser penalty also lessened the incentive for compliance with the legislation.6

Comcare

2.11 Officers from Comcare began by providing an update to senators on the review of the organisation conducted by Mr John Cain. Mr Cain's review particularly addressed the recovery and support services provided to a number of individuals involved in long-term cases with the agency. The review formed part of an ongoing improvement process of the organisation being undertaken by Comcare. Officers noted that the draft report had been provided and that a number of strong recommendations from the report were already being actioned. General findings from the report indicated that individuals involved in long-term cases with Comcare were having difficulties in communicating with Comcare and with navigating the complexity of the systems in place for resolving cases. Officers noted that the organisation was seeking to address these concerns and would seek to be more helpful to people involved in long-term cases.7

Asbestos and work health and safety legislation

2.12 Senator Abetz raised the issue of asbestos management, expressing concern over the way that asbestos in existing infrastructure had been managed in the NBN rollout. The senator questioned Comcare on the management of misdemeanours by contractors involved in installation.

5 Proof Estimates Hansard, 3 June 2013, p. 40–41.

6 Proof Estimates Hansard, 3 June 2013, p. 42–43.

7 Proof Estimates Hansard, 3 June 2013, p. 52–53.

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2.13 Comcare stated that, under the Work Health and Safety Act, there is a clear line of accountability but that Comcare's interests on this issue particularly related to Telstra, the NBN Co. (the head contractor in the NBN rollout) and Visionstream (another contractor). Comcare noted that it had already conducted system-level audits with Telstra in 2009 and 2010.8

Safe Work Australia

2.14 Senator Abetz opened questioning of Officers from Safe Work Australia (SWA) by seeking clarification on answers to questions on notice which had been previously provided. Issues covered in these questions were wide-ranging and covered topics such as implementation of occupational health and safety laws, topical breakdowns of research expenditure by SWA and research and statistics on quad bike fatalities.9

2.15 Senators then pursued a further line of questioning on the draft model Work Health and Safety Code of Practice for Preventing and Responding to Workplace Bullying. Questioning addressed issues including ambiguity over how to define bullying, accessibility of the draft code to small businesses, and processes for cases of bullying involving the employer and the employee – particularly if the employer accused the employee of bullying.10

Fair Work Commission

2.16 Senator Abetz asked officers from the Fair Work Commission (FWC) for an update on the cost for the name change of the FWC from Fair Work Australia that occurred in December 2012. Officers noted that most of the signage on FWC buildings still refers to Fair Work Australia, and that the reason for the delay in changing the signage was the requirement for formal exemption from the Australian Government branding guidelines.

New bullying jurisdiction for the FWC

2.17 Officers from FWC responded to questions concerning the proposed expansion of the FWC jurisdiction to cover bullying, a matter currently under consideration by the parliament. Officers noted the difficulty of estimating what the potential increase in workload would be, although officials did say that appropriations of $5.2 million for 2013–14 and $21.4 million over four years were made on an estimation of the number of applications that FWC would likely receive per year. These estimates were based on the incidence of workplace bullying that the Productivity Commission found in 2010.11

8 Proof Estimates Hansard, 3 June 2013, p. 53–56.

9 Proof Estimates Hansard, 3 June 2013, p. 65–67.

10 Proof Estimates Hansard, 3 June 2013, p. 68–72.

11 Proof Estimates Hansard, 3 June 2013, p. 81–83.

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2.18 Based on the 37 000 current lodgements handled by the FWC, as well as a potential 3500 new applications under the new bullying jurisdiction, Senator Abetz estimated that an additional five commissioners would need to be appointed by FWC to supplement the current number of 54 commissioners. Senator Abetz asked officers whether the agency had reached similar conclusions in assessing the proposed changes. FWC Officers stated that they were not in a position to make such estimates with any real accuracy.12

Role of the FWC President

2.19 Senator Abetz questioned the FWC President on his part-time role as a Justice on the Federal Court, and in particular the potential for him to sit on matters emanating from the FWC. The President responded by saying that he had no particular desire to sit in the Fair Work jurisdiction while acting in his capacity as a judge on the Federal Court, but that ultimately the composition of benches was a matter entirely for the Chief Justice. He also noted that similar situations had arisen in the past on other tribunals.13

Department of Education, Employment and Workplace Relations – Outcome 3: Enhanced employability and acquisition of labour market skills

Job Services Australia

2.20 Senator Sinodinos opened questioning under Outcome 3 looking at Job Services Australia (JSA) – the government's employment services support system for job seekers and employers. Senator Sinodinos questioned officers from the Department of Education, Employment and Workplace Relations (the department) on various statistics regarding JSA. Other questions ranged across a variety of issues including long-term unemployed individuals receiving support through JSA, and older workers and discrimination in the labour market.14

2.21 Officers of the department also reported on the 'Work for the Dole' scheme in response to questions. The scheme provides voluntary opportunities for eligible job-seekers to work with not-for-profit organisations and gain new skills and experience to improve their chances of getting a job. The department provided information on attendance rates by activity type and compliance failure for individuals attending Work for the Dole activities.15

12 Proof Estimates Hansard, 3 June 2013, p. 83.

13 Proof Estimates Hansard, 3 June 2013, p. 85.

14 Proof Estimates Hansard, 4 June 2013, p. 6–8.

15 Proof Estimates Hansard, 4 June 2013, p. 9.

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Disability Employment Services

2.22 Senators questioned the department under Program 3.3 on issues relating to Disability Employment Services. Senator Back began by asking for statistics on employment outcomes for people with certain disability types, and in particular for a comparison between results obtained by specialist and generalist service providers. The department reported that collation of such information was currently being undertaken and would be available in detail by the year's end.16

2.23 Senator Siewert also questioned the department on Aboriginal specialist services for Disability Employment Services. Officers of the department noted that 4.8 per cent (7228 job seekers) of the overall proportion of the Disability Employment Services case load comprised Indigenous job seekers. In particular, there are four providers that deliver specialist services for Indigenous Australians located at 15 different sites in New South Wales, Western Australia and South Australia – although these specialist providers only serve 1.9 per cent of the total Indigenous case load.17

Newstart allowance

2.24 Senator Cash asked the department to provide information on recipients who had received exemptions from job seeker participation requirements under the Newstart allowance. Officers from the department noted that total exemptions numbered 74 298. Of these exemptions, Newstart recipients comprised the majority. Other payment types included: the parenting payment single, youth allowance and payments classified as 'other'. On further questioning, officers noted that some reasons behind these exemptions included: injury/illness, disability, temporarily incapacitation and caring responsibilities–including people with four or more children.18

Department of Education, Employment and Workplace Relations – Outcome 4: Safer, fairer and more productive workplaces

2.25 Senator Abetz questioned officers of the department extensively on their role in the proposal of the number of Vice-Presidents that should be appointed to the FWC. Senator Abetz put to the officers present that the committee had previously taken evidence on these appointments that was in apparent contrast to evidence given by the FWC President. The department noted previous evidence that had been provided to the committee on this matter, including a Freedom of Information request from Senator Abetz, and argued that the fluid nature of discussions involving the Minister for Employment and Workplace Relations, the President and departmental officials should be accounted for in considering any seeming inconsistencies.19

16 Proof Estimates Hansard, 4 June 2013, p. 42-43.

17 Proof Estimates Hansard, 4 June 2013, p. 47.

18 Proof Estimates Hansard, 4 June 2013, p. 55.

19 Proof Estimates Hansard, 4 June 2013, p. 68–75.

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2.26 Senator Abetz sought clarification about the limitations on Commonwealth and State and Territory jurisdiction as regards asbestos management. Officers noted that occupational work health and safety regulation is a state and territory responsibility, but also commented on the role of Comcare and Safe Work Australia from a federal perspective. 20

2.27 Officers of the department also provided an update on progress with the International Convention on Child Labour, noting that it is currently being considered by the Joint Standing Committee on Treaties. The convention, adopted by the International Labour Organisation in 1973, is the last of the eight internationally recognised fundamental conventions that Australia has not ratified. Senator Collins took on notice questions from Senator Abetz on the rationale for the Government's decision to consider ratification in light of previous decisions by the Whitlam, Hawke, Keating, Howard and Rudd governments not to ratify it.21

Department of Education, Employment and Workplace Relations – Cross Portfolio

2.28 Senator Mason questioned officers of the department on the issue of staff absenteeism. The department took on notice questions on absentee statistics disaggregated into categories such as age, job position and classification, gender and days of the week that leave is taken. Senator Mason brought to the attention of the committee the significance of this issue by citing a report by the Queensland Auditor-General. The report, taking the average of 8.5 days unscheduled absences annually per worker, estimated that each one of those days cost the Queensland Public Service $200 million. Senator Mason further noted that, according to APS State of the Service Statistics, unscheduled absences in the APS are higher. Due to the much larger size of the APS in comparison to Queensland's Public Service, he speculated that this issue was potentially costing the Commonwealth approximately $1 billion a day for each day of the annual average. Reducing the average therefore by even one or two days could potentially save the government $2 billion. 22

Australian Curriculum, Assessment and Reporting Authority

Draft senior secondary curriculum

2.29 Witnesses updated the committee on progress with the draft senior secondary curriculum. Officers of the Australian Curriculum, Assessment and Reporting Agency (ACARA) had advised in previous estimates hearings that the draft curriculum had cleared the ministerial council in December 2012 and that ACARA officials would be meeting with various state and territory authorities by the end of March 2013. Officers reported that:

20 Proof Estimates Hansard, 4 June 2013, p. 84–86.

21 Proof Estimates Hansard, 4 June 2013, p. 111–112.

22 Proof Estimates Hansard, 5 June 2013, p. 6–8.

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We have had those meetings. They were aimed at exploring about three or four questions. One was given the curriculum, which is the content and the achievement standards that ministers had endorsed as the basis for this further work last year. We had a discussion with them about what process they had in place, or were planning to have in place, to look at the content and how it could be integrated within local courses and to have a look at the achievement standards and how they related to their current form of assessing and reporting on achievement in the senior years. We also had some discussion with them about a technical process of validating the achievement standards. So we have had the initial round.23

2.30 Officers from ACARA further reported that general feedback from the states was that the draft curriculum had a high degree of alignment with their local curriculum. ACARA's focus would be on using this alignment as a basis for greater

consistency across the nation. ACARA is due to report back to the ministerial council in November 2013.24

NAPLAN cheating and breaches

2.31 Senator Mason questioned officers from ACARA on the issue of cheating and breaches under the National Assessment Program – Literacy and Numeracy (NAPLAN). Senator Mason brought a high-profile case of cheating to the attention of the committee, and asked questions on how such cases were addressed. More broadly, he also raised questions concerning instances of cheating and breaches. ACARA officers responded by taking on notice details of such instances and also said that the most recent round of testing had given rise to some reports that were under current investigation.25

Australian Institute for Teaching and School Leadership

2.32 Senator Mason asked officers from the Australian Institute for Teaching and School Leadership (AITSL) to update the committee on state and territory reporting under the Australian Teacher Performance and Development Framework. AITSL officers reported that:

We can confirm that schools have adopted the framework, and it is my understanding, as a result of feedback through to DEEWR, that they have established their baseline position to support the implementation of the Australian Teacher Performance and Development Framework… The framework provided advice about best practice and identified four essential elements, but it did not dictate to schools, systems or sectors how those four essential elements needed to be implemented. One, for example, to be quite specific, is that teachers need regular and ongoing feedback. How you

23 Proof Estimates Hansard, 5 June 2013, p. 18.

24 Proof Estimates Hansard, 5 June 2013, p. 19.

25 Proof Estimates Hansard, 5 June 2013, p. 24–25.

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organise that within your school is contextual. It is school specific. That you have to have it is non-negotiable. 26

Department of Education, Employment and Workplace Relations – Outcome 1: Early childhood education

2.33 Officers from the department began by updating the committee on progress with the Indigenous early childhood education centres in response to questions from Senator Mason. Officers reported that 17 centres had been completed to date, with a further 19 providing interim services. 215 staff operated across a total of 38 sites They also noted that all centres would be completed by June 2014 according to advice provided by the relevant state and territory agencies.27

Early Years Quality Fund

2.34 Senator Xenophon asked officers of the department about the rationale underpinning the proposed Early Years Quality Fund, which is intended to attract and retain qualified professionals into the long day care sector. In particular, the fund is aimed at maintaining affordability for early childhood education through the supplementation of wages for qualified educators.28 Officers explained that, as the sector is relatively low-paid, the fund would be intended to raise the professionalism of the sector through wage increases and through engendering an increased focus on early learning.

2.35 Senator Xenophon noted that, of the $300 million proposed to be made available under the fund, only approximately 40 per cent of industry workers in the sector would be eligible to receive funding under the scheme. Following this, he questioned officers on the criteria that would be used to decide funding recipients. He raised the concern that workers with equivalent or similar qualifications in the sector might miss out or receive benefits under the program purely on the basis of who applied first. Officers of the department reported that an advisory board was proposed to determine the criteria for assessing applicants under the fund, and to advise on issues concerning the operation of the fund more generally.29

Department of Education, Employment and Workplace Relations – Outcome 2: Schools and youth

2.36 Officials reported to the committee on budget allocations for the parental and community engagement program. Allocations for the 2013 calendar year are approximately $22 million while funding beyond that has not yet been allocated. Senator Back questioned the department on eligibility criteria for funding under the

26 Proof Estimates Hansard, 5 June 2013, p. 31.

27 Proof Estimates Hansard, 5 June 2013, p. 37–38.

28 Proof Estimates Hansard, 5 June 2013, p. 42-43.

29 Proof Estimates Hansard, 5 June 2013, p. 42-43.

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program and the success of the program in achieving outcomes. Officers of the department responded that the objectives of the program were to build parental engagement with schools. Evaluation was primarily based on:

…assessments by project participants in their confidence, knowledge and engagement with schooling. It is primarily qualitative information, feedback and the self-evaluation of engagement and satisfaction levels.30

Bullying in schools

2.37 Senator Mason raised the issue of bullying in schools with officers of the department, particularly in relation to the Safe Schools Hub website and the Bullying. No Way! website. Officers reported that, following a two-part rollout of the Safe Schools Hub website, resources and learning modules were now available for staff in schools and for parents in dealing with bullying issues. Following further questions from Senator Bilyk, officers of the department noted that cyber-bullying issues are also a concern and that as such it was important to be explicit and up-front about these issues in schools.31

2.38 Officers also reported to the committee on the National Safe Schools Framework noting that:

The National Safe Schools Framework is a document that was endorsed by all MCEECDYA (Ministerial Council for Education, Early Childhood Development and Youth Affairs) ministers…and is being implemented in schools across the country in a variety of ways. It is a framework that guides safe school activity in schools. Under the National Plan for School Improvement, one of the reform areas indicates that the expectation is that schools will implement elements of the framework. We do not currently collect data or information about how many schools are implementing the framework. We do understand quite a number of them are; it is just that we do not know how many specifically are.32

National Partnership for Improving Teacher Quality

2.39 Senator Gallacher raised questions on the large number of people that were graduating with diplomas of education from Australian universities, and that this constituted an over-supply in light of the relatively small number of vacancies available in the sector. He asked officers of the department to explain how this could be consistent with reports that there is a lack of high-quality teachers available.33

2.40 Officers responded by saying that there were a number of factors that explain the discrepancy. One such factor was that the relationship between universities and

30 Proof Estimates Hansard, 6 June 2013, p. 6–7.

31 Proof Estimates Hansard, 6 June 2013, p. 11–13.

32 Proof Estimates Hansard, 6 June 2013, p. 13.

33 Proof Estimates Hansard, 6 June 2013, p. 47.

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employers (education departments) needed to be better developed so as to promote clear communication on the types of graduates that the sector required. Where graduates might be numerous in relation to one area (e.g. primary teaching), there may be a shortage in others (e.g. secondary maths teaching). Officers also noted the importance of accounting for temporary and casual vacancies, and the need to fill those when they arose.34

Senator Gavin Marshall Chair

34 Proof Estimates Hansard, 6 June 2013, p. 47–48.

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Appendix 1

Committee oversight of departments and agencies

Education, Employment and Workplace Relations portfolio

 Department of Education, Employment and Workplace Relations;

 Australian Curriculum, Assessment and Reporting Authority;

 Australian Institute for Teaching and School Leadership Ltd;

 ComCare;

 Fair Work Commission;

 The Fair Work Ombudsman;

 Fair Work Building and Construction; and

 Safe Work Australia.

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Appendix 2

Statement by the Chair

Yesterday, during questions to the department, Senator Abetz asked whether it had sought legal advice about compulsory arbitration. Mr O'Sullivan declined to answer on the basis of legal professional privilege but eventually took the question on notice.

It should be well known to officers attending this committee that there is a clear process for seeking not to answer a question, a process which is referred to at the beginning of every set of hearings. Copies are available from the secretariat.

No witness has an independent discretion to decline to answer a question. An officer has a right under Privilege Resolution 1(16) to refer a question to a senior officer or minister. Alternatively, an officer may state the public interest ground on which he or she believes it may not be in the public interest to disclose the information requested AND specify the harm to the public interest that could result from disclosure of the information. The order of the Senate of 13 May 2009, to which I have already referred, then sets out the process to be followed. There is no other basis on which an answer may be withheld from a committee.

It is very difficult to see how the answer to a question whether legal advice has been sought on a matter could attract legal professional privilege, let alone how it could harm the public interest. The public interest in Commonwealth agencies being accountable to committees of this Parliament for their administration of taxpayers' money must, in most cases, prevail.

It has never been accepted in the Senate, nor in any comparable representative assembly, that legal professional privilege provides a ground for a refusal of information in a parliamentary forum. The first question in response to any such claim is: to whom does the legal advice belong, to the Commonwealth or some other party? Usually it belongs to the Commonwealth. Legal advice to the federal government, however, is often disclosed by the government itself. Therefore, the mere fact that information is legal advice to the government does not establish a basis for this ground. It must be established that there is some particular harm to be apprehended by the disclosure of the information, such as prejudice to pending legal proceedings or to the Commonwealth's position in those proceedings. If the advice in question belongs to some other party, possible harm to that party in pending proceedings must be established, and in any event the approval of the party concerned for the disclosure of the advice may be sought.

I suggest that the department should think very carefully in answering the question on notice about where the public interest actually lies.

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Appendix 3

Index to Proof Hansard transcripts Education, Employment and Workplace Relations portfolio

Monday, 3 June 2013 Page no

Fair Work Ombusdman 5

Fair Work Building and Construction 34

Comcare 52

Safe Work Australia 65

Fair Work Commission 75

Tuesday, 4 June 2013

Outcome 3 – Enhanced employability and acquisition of labour market skills 6

Outcome 4– Safer, fairer and more productive work places 66

Wednesday, 5 June 2013

Cross Portfolio 4

Australian Curriculum Assessment and Reporting Authority 16

Australian Institute of Teaching and School Leadership 30

Outcome 1- Early childhood education 37

Outcome 2- Schools and youth 58

Thursday, 6 June 2013

Outcome 2- Schools and youth 4

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The Senate

Environment and Communications

Legislation Committee

Budget estimates 2013–14

June 2013

117

© Commonwealth of Australia 2013

ISBN 978-1-74229-863-4

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

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Membership of the Committee

Members:

Senator Doug Cameron (ALP, NSW) (Chair) Senator Simon Birmingham (LP, SA) (Deputy Chair) Senator Catryna Bilyk (ALP, TAS) Senator Bridget McKenzie (NATS, VIC) Senator the Hon Lisa Singh (ALP, TAS) Senator Larissa Waters (AG, QLD)

Committee Secretariat

Ms Sophie Dunstone, Acting Secretary Ms Toni Matulick, Secretary Ms Jacquie Hawkins, Research Officer

Committee Address

Senate Standing Committee on Environment and Communications PO Box 6100 Parliament House Canberra ACT 2600

Tel: 02 6277 3526

Fax: 02 6277 5818

Email: ec.sen@aph.gov.au

Internet: www.aph.gov.au/Parliamentary_Business/Committees/Senate_Committees? url=ec_ctte/estimates/index.htm

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Contents

Membership of the Committee iii

Report to the Senate

Introduction 1

Hearings 1

Questions on notice – date for answers 1

Procedural and other matters 2

Changes to portfolios 1

Late answers to questions on notice 2

Portfolio specific issues 2

Climate Change 2

Sustainability, Environment, Water, Population and Communities 4

Broadband, Communications and the Digital Economy 8

Acknowledgements 11

Appendix 1 – Public hearings agenda 13

Appendix 2 – Documents tabled 17

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Budget estimates 2013–14

Introduction 1.1 On 14 May 2013 the Senate referred the following documents to standing committees for examination and report:

• Particulars of proposed expenditure in respect of the year ending on 30 June 2014 [Appropriation Bill (No. 1) 2013–14]; and

• Particulars of certain proposed expenditure in respect of the year ending on 30 June 2014 [Appropriation Bill (No. 2) 2013–14].1

1.2 Standing committees were required to report to the Senate on 25 June 2013.2

Hearings 1.3 The committee conducted public hearings with the Climate Change outcome of the Industry, Innovation, Climate Change, Science, Research and Tertiary Education portfolio on 27 May 2013; the Sustainability, Environment, Water, Population and Communities portfolio on 28 and 29 May 2013 and the Broadband, Communications and the Digital Economy portfolio on 29 and 30 May 2013. The committee's public hearings program is at Appendix 1. Documents tabled during the hearings are listed at Appendix 2.

1.4 Written answers and information provided to the committee in response to questions on notice arising from the hearings are tabled in the Senate and posted on the committee’s web page.

1.5 Links to the transcripts of these public hearings and to answers and additional information are available on the Internet at:

www.aph.gov.au/Parliamentary_Business/Committees/Senate_Committees?url=ec_ctte/ estimates/bud_1314/index.htm.

Questions on notice – date for response 1.6 In accordance with Standing Order 26(9)(a), the committee agreed that the date for the return of written answers or additional information in response to questions placed on notice during the 27–30 May hearings, be Friday, 26 July 2013.

Procedural and other matters

Changes to portfolios

1.7 Under changes to the machinery of government of March 2013 the Climate Change and Energy Efficiency Portfolio was disbanded. The amended Administrative Arrangements Order transferred all climate change responsibilities to the Industry, Innovation, Climate Change, Science, Research and Tertiary Education portfolio and all energy efficiency responsibilities to the Resources, Energy and Tourism portfolio.

1 Journals of the Senate, No. 144, 14 May 2013, p. 3915.

2 Journals of the Senate, No. 121, 1 November 2012, p. 3239.

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1.8 On 15 May 2013, the Senate allocated responsibility for Climate Change matters to the Environment and Communications Committee.3

Late answers to questions on notice

1.9 As in previous estimates reports, the committee again expresses its concern about the time taken to receive answers to questions taken on notice.

1.10 The committee notes that it had set Friday, 12 April 2013 as the date for the return of answers to questions taken on notice during the Additional Estimates held in February 2013. However, at that date there was a total of 772 answers outstanding to 929 questions on notice across the three portfolios, as follows:

• Broadband, Communications and the Digital Economy portfolio, 451 of 452;

• Climate Change and Energy Efficiency portfolio, 144 of 226; and

• Sustainability, Environment, Water, Population and Communities portfolio, 177 of 251.

1.11 The last of these late answers were submitted in the days prior to and during the Budget Estimates hearings.

1.12 The committee reiterates its expectation that answers to questions on notice should be provided to the committee by the due date.

Portfolio specific issues 1.13 On the first day of its examination of the 2013–14 Budget Estimates, the committee called and examined officers from the Climate Change outcome area of the Industry, Innovation, Climate Change, Science, Research and Tertiary Education (IICCSRTE) portfolio including the Clean Energy Regulator and the Climate Change Authority.

1.14 The committee welcomed Senator the Hon Don Farrell, Minister for Science and Research, representing the Minister for Climate Change, Industry and Innovation, the Hon Greg Combet MP.

1.15 The committee raised a range of matters which are noted below. The page references beside each matter refer to the proof transcript for Monday, 27 May 2013.

Climate Change, Outcome 4: Reduction of Australia’s greenhouse gas emissions, adaptation to the impacts of climate change, and negotiation of an effective global solution, through the development and implementation of a national response to climate change; and bilateral, regional and multilateral engagement internationally

1.16 Before commencing general questions of the department, the chair noted that general questions of the department concerning corporate administrative matters should be addressed to the relevant area of the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary, scheduled to appear the following

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

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week before the Economics Legislation Committee. Questions commenced including about:

• the transfer of climate change functions (pp 3–4)

• staff placements and redundancies (pp 3–8).

1.17 At the conclusion of general questions, the committee called departmental officers in relation to Program 4.1: Reducing Australia's greenhouse gas emissions. Matters raised included:

• role played in the revisions and settings of the new estimates for carbon

prices in the budget (pp 8–13)

• numbers of permits available for auction in 2015–16 (pp 13–14)

• revenue changes related to the adoption of the second Kyoto commitment

period and new greenhouse gas global warming potentials (pp 14–16, 17–22, 26–28)

• rollout of the King Island Renewable Energy Integration Project (pp 16–17)

• level of renewable energy output since the introduction of the carbon price

(p. 17).

1.18 Officers from the Clean Energy Regulator were called and examined. Matters raised included:

• attendance of Ms Munro at a global carbon expo conference in Europe

(p. 28)

• operation of and compliance issues surrounding the Renewable Energy

Target (pp 29–33)

• schedule for the carbon unit auction (pp 34–40).

1.19 Officers were called and examined in relation to Program 4.2: Adapting to Climate Change. Matters raised included:

• public information activities (pp 40–43)

• decision to defund the national adaptation research facility (pp 43–45)

• update about the Natural Resource Management Planning for Climate

Change Fund (pp 45–49)

• role of the Select Council on Climate Change (pp 49–50)

• assessing emissions from rubbish tips and green waste facilities

(pp 50–52).

1.20 Officers from the Climate Change Authority were called and examined. Matters raised included:

• attendance of the CEO at an international climate change conference and

the United Nations Framework Convention on Climate Change (UNFCCC) negotiations (p. 53)

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• progress of the caps and targets review (pp 54–67).

1.21 Officers were called and examined in relation to Program 4.3: Helping to shape a global climate change solution. Matters raised included:

• submission made to the UNFCCC concerning negotiations for achieving a

globally binding treaty by 2015 (pp 67–71)

• process for the finalisation of the one-way linking arrangements for using

emission limits from Europe with the European Commission (pp 71–74)

• funding for the Kalimantan Forests and Climate Partnership (pp 74–75)

• progress of the Partnership for Market Readiness and the Asia Pacific

Carbon Markets Roundtable (pp 75–77)

• engagement with China on its proposed pricing of carbon (pp 77–78,

80–81).

1.22 Officers were called and examined in relation to Program 4.4: Program Support. Matters raised included:

• landfill emissions, process for calculating and assessing (pp 82–88)

• expanding the carbon tax regime to include the transport sector (pp 88–90)

• abolition of the non-Kyoto fund (pp 90–92)

• the Energy Security Fund (pp 92–94).

Sustainability, Environment, Water, Population and Communities (SEWPaC) portfolio

1.23 On the second day of hearings, the committee called and examined officers from the Sustainability, Environment, Water, Population and Communities portfolio.

1.24 The committee welcomed Senator the Hon Don Farrell, Minister for Science and Research, representing the Minister for Sustainability, Environment, Water, Population and Communities, the Hon Tony Burke MP.

1.25 The committee raised a range of matters which are noted below. The page references beside each matter refer to the proof transcript for Tuesday, 28 May 2013.

1.26 General questions were asked of the department about:

• cost of redundancies in 2012–13 and general staff reduction numbers

(pp 4–9).

1.27 The committee called agencies and departmental officers in relation to Outcome 1 commencing with the Bureau of Meteorology which was called and examined. Matters raised included:

• staff numbers (pp 9–10)

• recommissioning of the Tennant Creek radar (pp 10–14)

• funding for advertising on the bureau's website (pp 14–15)

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• recommendation for the closure of terminal area forecasts in 78 airports

across Australia (pp 15–18)

• costs for the next generation forecast and warning system (pp 18–20).

1.28 The Great Barrier Reef Marine Park Authority was called and examined. Matters raised included:

• Reef Rescue funding arrangements (pp 21–22)

• funding for the crown-of-thorns starfish eradication program (pp 22–24, 32–33)

• funding and staff levels (pp 24–26)

• the World Heritage Committee report on the state of the Reef (pp 26–28)

• finalisation of the Great Barrier Reef Marine Park strategic assessment

(pp 28–32).

1.29 The Director of National Parks was called and examined. Matters raised included:

• reasons for reduced revenue forecast (pp 33–34)

• culling programs and feral animal management program (pp 37–38, 41–42)

• upgraded facilities and visitor numbers to Uluru (pp 38–40)

• update on the yellow crazy ant eradication program on Christmas Island

(pp 40–41).

1.30 Officers were called and examined in relation to Program 1.1: Sustainable Management of Natural Resources and the Environment. Matters raised included:

• programs funded under the Caring for our Country program (pp 43–47,

66–69)

• the Working on Country program (pp 47–48)

• marine debris threat abatement plan (pp 48–52)

• proposed cattle grazing in national parks (pp 52–56, 64–66, 71–72)

• status of investigation into environmental stewardship funding to the

Empire Property Investment Group (pp 56–59)

• progress report on the fisheries adjustment assistance package (pp 59–62)

• future management arrangements of Commonwealth marine reserves

(pp 62–64)

• funding for the Tasmanian Forest Agreement (pp 64, 69–71).

1.31 Officers were called and examined in relation to Program 1.2: Environmental Information and Research. Matters raised included:

• current status of the International Court of Justice case between Australia and Japan regarding whaling (pp 73–76).

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1.32 Officers were called and examined in relation to Program 1.3: Carbon Pollution Reduction – Land Sector Initiatives. Matters raised included:

• rephasing of funding from the biodiversity fund (pp 79–80)

• number of projects funded (pp 80–86).

1.33 Officers were called and examined in relation to Outcome 2, Program 2.1: Management of Hazardous Wastes, Substances and Pollutants. Matters raised included:

• automotive refrigerant gas sector, degassing of written-off vehicles

(pp 86–87)

• attendance at Rotterdam convention and the listing of chrysotile asbestos on annex III of the convention (pp 87–89)

• funding in relation to synthetic greenhouse gases and ozone depleting substances (pp 89–94).

1.34 Officers were called and examined in relation to Program 2.2: Sustainable Communities. Matters raised included:

• expected jobs created under the Suburban Jobs Programs in Penrith,

Melton and Playford (pp 95–96)

• role of the National Sustainability Council (p. 97).

1.35 Officers were called and examined in relation to Outcome 3, Program 3.1: Antarctica: Science, Policy and Presence. Matters raised included:

• proposed upgrade of the Aurora Australia and proposals for a replacement vessel (pp 98–101, 105–106)

• funding for the Antarctic Division (pp 101–103, 104–105)

• number of flights to Wilkins during the year (pp 103–104).

1.36 On the third day of hearings, the committee continued its examination of the Sustainability, Environment, Water, Population and Communities portfolio, commencing with Outcome 5.

1.37 The page references beside each matter below refer to the proof transcript for Wednesday, 29 May 2013.

1.38 The committee welcomed Senator the Hon Don Farrell, Minister for Science and Research, representing the Minister for Sustainability, Environment, Water, Population and Communities and officers.

1.39 Officers were called and examined in relation to Outcome 4, together with officers from the Murray-Darling Basin Authority and the National Water Commission. Matters raised included:

• funding for projects within Restoring the Balance program (p. 4, 9–10)

• update on progress of intergovernmental agreements for implementation of

the basin plan (pp 5, 31–33)

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• progress report on the Nimmie-Caira proposal (pp 5–7, 10, 29–30, 46)

• research of groundwater resources in the Menindee region (pp 6–9)

• water recovered towards the basin plan target and buybacks (pp 11–16, 33–34)

• impact on the Murray-Darling Basin Authority of reduced state government funding (p. 17, 34–35)

• funding provided for the South Australian Riverland Floodplains Integrated Infrastructure Program (pp 19–21, 23–24)

• monitoring and evaluation of On-Farm Irrigation Efficiency Program

projects (pp 24–25)

• approval of coal seam gas projects, water monitoring and management

programs, conditions for storing salt residue (pp 26–29, 35–37)

• appointment of three new commissioners and a new chair to the NWC

board (p. 38).

1.40 Officers were called and examined in relation to Outcome 6, Program 6.1 together with officers from the Commonwealth Environmental Water Office.

• total water delivered to the environment (p. 39)

• staff numbers and location (pp 40, 44–45)

• value of the water asset (p. 40)

• environmental water plan (pp 42–43, 46).

1.41 The chair welcomed Senator the Hon Jan McLucas, Minister for Human Services, representing the Minister for Sustainability, Environment, Water, Population and Communities.

1.42 Officers were called and examined in relation to Outcome 5, Program 5.1: Conservation of Australia's Heritage and Environment. Matters raised included:

• proposal to build a bridge in Windsor, NSW and the impact on Thompson Square (pp 47–49)

• possible impacts of the NSW government implementing its standard instrument local environmental plan on adjacent World Heritage areas (pp 49–50)

• proposed shooting and recreational hunting in NSW national parks (pp 50–51)

• staff cuts in the environmental regulation and heritage areas (pp 51–52)

• update on proposed nomination for World Heritage Listing for the Burrup;

Cape York and for minor boundary adjustment in Tasmania (pp 52–57, 66, 89)

• status of the listing of the Cascades Female Factory in South Hobart

(p. 60).

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1.43 Officers were called and examined in relation to Program 5.2: Environmental Regulation, commencing with the Office of Supervising Scientist (OSS). Matters raised included:

• role of the office of supervising scientist in the environmental impact

assessment of the Toro project in WA (p. 61)

• status of the Ranger 3 Deeps in Kakadu (pp 62, 65)

• measures taken to stabilise cracking in the pit wall at Ranger (pp 63).

1.44 Departmental officers were then called in relation to Program 5.2. Matters raised included:

• assessment of a nomination of a key threatening process for marine seismic surveys around nine species (p. 66)

• proposal to allow cattle grazing in some Queensland national parks (pp 67–69)

• procedures for moving on flying fox species (pp 69–70, 85) and bats (pp 77–78, 85)

• approval process for coal seam gas projects and water monitoring and

management plans (pp72–73)

• modelling of dredging and dump spoil movements in the Great Barrier

Reef (pp 73–76)

• approval of the Wiluna uranium project on the north-east goldfield in WA

(pp 78–82)

• costs of implementing the water trigger amendments to the EPBC Act

(pp 83–85, 86–87, 88).

Broadband, Communications and the Digital Economy portfolio

1.45 At the conclusion of its examination of the Sustainability, Environment, Water, Population and Communities portfolio, the committee called and examined officers from the Broadband, Communications and the Digital Economy portfolio.

1.46 The committee welcomed Senator the Hon Stephen Conroy, Minister for Broadband, Communications and the Digital Economy.

1.47 Questioning commenced of the Australian Broadcasting Corporation. Matters raised included:

• purpose of amendments to the ABC's charter (p. 92)

• suggestion to privatise the ABC and the SBS (pp 92–93)

• use of the Perth production facilities (pp 93–94)

• social media use, Russell Skelton Twitter pages and appointment as fact checker (pp 95–105)

• use of Vote Compass (pp 102–104)

• closure of the production unit in Tasmania (pp 105, 107)

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• loss of contract with the BBC to Foxtel (pp 106, 109–111)

• centralising of the film archive in Sydney (pp 107–109)

• jamming of Radio Australia's signal into Asia (pp 112–113)

• funding for emergency broadcasting services (p. 116).

1.48 Questioning commenced of the Telecommunications Universal Service Management Authority. The chair welcomed Mr Robert Lomdahl to his first estimates appearance and invited him to make an opening statement. Questioning commenced and matters raised included:

• assessing Telstra's performance in providing telephone services meeting its

obligations (pp 118–119)

• procedures for the migration of voice-only customers to the NBN

(pp 119–121).

1.49 Questioning commenced of the Australian Communications and Media Authority. Matters raised included:

• progress report on the development of the plan to transition wireless

microphones out of the 700 megahertz band (pp 122–125)

• details of published tenders (pp 125–126)

• progress of regulation of live odds betting on television (pp 126–127, 129)

• ACMA's role in the National Cyber Security Awareness Week (pp 127–128)

• extent of the use of section 313 of the Telecommunications Act to block websites (pp. 129–130)

• conclusion of the spectrum auction (pp 130–133).

1.50 On the fourth day of hearings, the committee continued its examination of the Broadband, Communications and the Digital Economy portfolio.

1.51 The committee welcomed Senator the Hon Stephen Conroy, Minister for Broadband, Communications and the Digital Economy.

1.52 The committee raised a range of matters which are noted below. The page references beside each matter refer to the proof transcript for Thursday, 30 May 2013.

1.53 Before general questions commenced, the Minister made a statement about a number of recent issues relating to the handling of asbestos in telecommunications infrastructure. Questioning then commenced of the department. Matters raised included:

• follow up questions about recent asbestos incidents (pp 4–6)

• extent of the use of section 313 of the Telecommunications Act to block certain websites (pp 9–15).

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1.54 Officers from the Special Broadcasting Service were called and examined. Mr Michael Ebeid, Managing Director, made a brief opening statement after which questioning commenced. Matters raised included:

• purpose of additional funding (pp 15–16)

• extent of in-language broadcasting (pp 18–20)

• suggestion to privatise the ABC and the SBS (p. 20)

• progress of the NITV channel (pp 21–22)

• in-program advertising (p22–23).

1.55 Officers from the department were called and examined in relation to Program 1.3: Broadcasting and Digital Television. Matters raised included:

• number of households in Adelaide applying for assistance under the

Household Assistance Scheme (pp 23–24, 26)

• update on the percentage in households in Brisbane, Gold Coast and Noosa

areas that have switched over (23–25)

• number of installations of VAST (p. 25, 34)

• resolution of transmission issues across the Hunter region (pp 26–28)

• differences between proposed regulation of live odds television advertising and SA code of practice (pp 28–34).

1.56 Officers from Australia Post were called and examined. Mr Ahmed Fahour, Managing Director and Chief Executive Officer, made an opening statement. Matters raised included:

• average salary of 'posties'; collective agreement negotiations (pp 36–37, 46)

• launch of the digital mailbox (pp 39–41, 45)

• payments to operators of licensed post offices (pp 41–42, 48–49)

• delivery to private residences in Marian, Queensland; survey procedures

(pp 43–44, 47)

• guaranteed next business day delivery Express Post network (pp 46,

50–51).

1.57 Officers from the department were called and examined in relation to Program 1.2: Digital Economy and Postal Services. Matters raised included:

• details concerning the corrigendum to the PBS (pp 53–55)

• any proposals to mandate the use of the digital mailbox service across

government agencies (p. 55)

• purpose of the sixth mux (or multiplexer) spectrum (p. 56)

• the spectrum sale process (pp 56–58)

• funding of the regional telecommunications review response and the

satellite phone subsidy scheme (pp 60–61)

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• effectiveness of the digitalbusiness.gov.au website (p. 62).

1.58 Officers from the department were called and examined in relation to Program 1.1: Broadband and Communications Infrastructure. Matters raised included:

• potential legal liability of the Commonwealth resulting from recent

asbestos remediation work (pp 63–64)

• size and font used in telephone books (pp 64, 70)

• funding for advertising of the NBN (pp 65–67)

• timeline of incidents and issues relating to asbestos exposure in the rollout

of the NBN (pp 67–69)

• existence of an integrated mapping system of communications infrastructure including broadband, phone, free-to-air broadcasting and mobile services (pp 73–74)

• purpose of additional $2.4 million capital funding (pp 74–76)

• process for progress reporting between the NBN Co and the department (pp 76–80)

• amount budgeted for contingent/termination liabilities (pp 80, 81)

• status of internet services on Lord Howe Island (p. 81–82)

1.59 The NBN Co was then called and examined. The Chief Executive Officer, Mr Mike Quigley made an opening statement and tabled updated Activity Profile sheets indicating premises passed, take-up rates, average usage rates and results of a retail price survey. Questioning commenced and matters raised included:

• circumstances surrounding incidents associated with the handling of

asbestos, work safety training (pp 84–92, 95–99)

• number, if any, of 457 visa workers currently employed (p. 92)

• Profile Activity sheets, including take up rates by Fibre Servicing Area

Module (FSAM) brownfields (pp 92–94, 104–106, 122)

• operation of the board (pp 99–102)

• progress report on the rollout for the fixed wireless and satellite service (pp 106–113)

• issues arising from the financial statements (pp 113–122)

• purchase of the TransACT fibre-to-the-premise network (pp 124–125)

• numbers of contracts let to date for fibre rollout (p. 127).

Acknowledgements

1.60 The committee thanks Senator the Hon Don Farrell, Minister for Science and Research; Senator the Hon Jan McLucas, Minister for Human Services; Senator the Hon David Feeney, Parliamentary Secretary for Defence; and Senator the Hon

Stephen Conroy, Minister for Broadband, Communications and the Digital Economy, along with officers from the three portfolio departments and agencies, for their

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assistance during this Budget estimates process. The committee also thanks Hansard, Broadcasting and the committee secretariat.

Senator Doug Cameron Chair

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Appendix 1

The Senate BUSINESS OF COMMITTEES

This document is issued as a guide to Senators Business listed is subject to change

It should be noted that times allocated for the consideration of outcomes, items and agencies within portfolios are indicative only.

Senators, staff and departments should liaise with secretariats on the progress of portfolios during the estimates process.

SENATE ENVIRONMENT AND COMMUNICATIONS LEGISLATION COMMITTEE

Public Hearings: Budget Estimates 2013–14 Monday, 27 to Thursday, 30 May 2013

and, if required, Friday, 31 May 2013

Committee Room 2S3

Parliament House

Canberra ACT

To be televised on Channel 11 and broadcast on Radio 91.1

http://www.aph.gov.au/News_and_Events/Watch_Parliament

AGENDA

Monday, 27 May 2013 9.00 am Climate Change (part of the Industry, Innovation, Climate Change, Science, Research and Tertiary Education Portfolio)

Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education (DIICCSRTE) 9.00 am General questions

9.30 am Outcome 4: Reduction of Australia’s greenhouse gas emissions, adaptation to the impacts of climate change, and negotiation of an effective global solution, through the development and implementation of a national response to climate change; and bilateral, regional and multilateral engagement internationally.

9.30 am Program 4.1 Reducing Australia’s greenhouse gas emissions

Morning Tea: 10.45–11.00 am

11.45 am Clean Energy Regulator

Lunch: 1.00–2.00 pm

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2.00 pm Program 4.2 Adapting to climate change

3.15 pm Climate Change Authority

Afternoon Tea: 3.45–4.00 pm

5.15 pm Program 4.3 Helping to shape a global climate change solution

Dinner: 6.00–7.00 pm

7.30 pm Program 4.4 Program Support

Tea break: 9.00–9.15 pm

11.00 pm Adjournment

Tuesday, 28 May 2013 9.00 am Sustainability, Environment, Water, Population and Communities Portfolio

Department of Sustainability, Environment, Water, Population and Communities (DSEWPaC) 9.00 am General questions of the Department

Outcome 1: The conservation and protection of Australia's terrestrial and marine biodiversity and ecosystems through supporting research, developing information, supporting natural resource management and establishing and managing Commonwealth protected areas

9.30 am Bureau of Meteorology

Morning Tea: 10.45–11.00 am

11.00 am Great Barrier Reef Marine Park Authority

12 noon Director of National Parks

Lunch: 1.00–2.00 pm

2.00 pm Program 1.1: Sustainable Management of Natural Resources and the Environment

Afternoon Tea: 3.45–4.00 pm

5.00 pm Program 1.2: Environmental Information and Research

Dinner: 6.00–7.00 pm

7.00 pm Program 1.3: Carbon Pollution Reduction – Land Sector Initiatives

Land Sector Taskforce

8.15 pm Outcome 2: Improved sustainability of Australia's population, communities and environment through coordination and development of sustainable population and communities policies, and the reduction and regulation of waste, pollutants and hazardous substances

8.15 pm Program 2.1: Management of Hazardous Wastes, Substances and Pollutants

Tea break: 9.00–9.15 pm

9.15 pm Program 2.2: Sustainable Communities 136

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10.00 pm Outcome 3: Advancement of Australia's strategic, scientific, environmental and economic interests in the Antarctic by protecting, administering and researching the region

Program 3.1: Antarctica: Science, Policy and Presence

11.00 pm Adjournment

Wednesday, 29 May 2013 9.00 am Sustainability, Environment, Water, Population and Communities Portfolio

Department of Sustainability, Environment, Water, Population and Communities (DSEWPaC) 9.00 am Outcome 4: Adaptation to climate change, wise water use, secure water supplies and improved health of rivers, waterways and freshwater

ecosystems by supporting research, and reforming the management and use of water resources

Murray-Darling Basin Authority

Program 4.1: Water Reform

National Water Commission

Morning Tea: 10.45–11.00 am

12.15 pm Outcome 6: Protection and restoration of environmental assets through the management and use of Commonwealth environmental water

Commonwealth Environmental Water Office

Program 6.1: Commonwealth Environmental Water

Lunch: 1.00–2.00 pm

2.00 pm Outcome 5: Increased protection, awareness and appreciation of Australia's environment and heritage through regulating matters of national environmental significance and the identification, conservation and celebration of natural, Indigenous and historic places of national and World Heritage significance

2.00 pm Program 5.1: Conservation of Australia's Heritage and Environment

3.00 pm Office of Supervising Scientist

Afternoon Tea: 3.45–4.00 pm

4.00 pm Program 5.2: Environmental Regulation

Dinner: 6.00–7.00 pm

7.00 pm Broadband, Communications and the Digital Economy Portfolio Department of Broadband, Communications and the Digital Economy (DBCDE) Outcome 1: Develop a vibrant, sustainable and internationally competitive

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broadband, broadcasting and communications sector, through policy development, advice and program delivery, which promotes the digital economy for all Australians

7:00 pm Australian Broadcasting Corporation

Tea break: 9.00–9.15 pm

9.15 pm Telecommunications Universal Service Management Authority

9.45 pm Australian Communications and Media Authority

11.00 pm Adjournment

Thursday, 30 May 2013 9.00 am Broadband, Communications and the Digital Economy Portfolio Department of Broadband, Communications and the Digital

Economy (DBCDE)

9.00 am General questions of the department

Outcome 1: Develop a vibrant, sustainable and internationally competitive broadband, broadcasting and communications sector, through policy development, advice and program delivery, which promotes the digital economy for all Australians

10.00 am Special Broadcasting Service

Morning Tea: 10.45–11.00 am

11.30 am Program 1.3: Broadcasting and Digital Television

12.30 pm Australia Post

Lunch: 1.00–2.00 pm

2 00 pm Australia Post

2.45 pm Program 1.2: Digital Economy and Postal Services

Afternoon Tea: 3.45–4.00 pm

4.00 pm Program 1.1: Broadband and Communications Infrastructure

Dinner: 6.00–7.00 pm

7.00 pm NBN Co

Tea break: 9.00–9.15 pm

11.00 pm Adjournment

Committee Chair: Senator Doug Cameron Contact: Jacquie Hawkins 02 6277 3528; jacquie.hawkins@aph.gov.au Committee Room 2S3; Ph: 02 6277 5853

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Appendix 2

Tabled documents

Wednesday, 29 May 2013

SEWPaC Table, SEWPaC Administered Programs, Expenditure/Budget Summary of Requirements: Stage 1 and Stage 2 Water Monitoring and Management Plans (WMMP)

Response to the Committee request for information regarding flying foxes

Senator Colbeck Copy of correspondence from Mr Burke, Minister for SEWPaC, to Interim Chair, Signatories to the Tasmanian Forest Agreement, dated 30 April 2013

Senator Macdonald Emails, re flying fox

Senator Abetz Copy of assorted Russell Skelton Twitter pages

TUSMA Mr Lomdahl, opening statement

Thursday, 30 May 2013

Australia Post Mr Fahour, opening statement

Senator Xenophon DVD, segment from Today Tonight broadcast in Adelaide on 16 May 2013

NBN Co Ltd Mr Quigley, opening statement Charts: Activity Profiles, Take-Up rate by FSAM; End-User Demand-Speed and Usage; and Retail Prices on the NBN

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The Senate

Finance and Public Administration

Legislation Committee

Budget estimates 2013–14

June 2013

141

ii

© Commonwealth of Australia 2013

ISBN 978-1-74229-864-1

Senate Fina

nce and Public Administration Committee Secretariat:

Ms Christine McDonald (Secretary)

Dr Jon Bell (Principal Research Officer)

Ms Margaret Cahill (Research Officer)

Ms Marina Katic (Administrative Officer)

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

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

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Membership of the Committee

Members

Senator Helen Polley (Chair) ALP, Tasmania

Senator Scott Ryan (Deputy Chair) LP, Victoria

Senator Richard Di Natale AG, Victoria

Senator the Hon John Faulkner ALP, New South Wales

Senator Arthur Sinodinos LP, New South Wales

Senator the Hon Ursula Stephens ALP, New South Wales

Participating members Senators Abetz, Bernardi, Bilyk, Mark Bishop, Boswell, Bushby, Kim Carr, Cormann, Faulkner, Fierravanti-Wells, Fifield, Heffernan, Humphries, Kroger, Ludlam, Mason, McKenzie, Moore, Parry, Payne, Polley, Pratt, Rhiannon, Ronaldson, Ruston, Ryan, Siewert, Sinodinos, Smith and Stephens.

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TABLE OF CONTENTS

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

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

Budget Estimates 2013–14 ....................................................................................... 1

Portfolio coverage .................................................................................................. 1

Portfolio Budget Statements ................................................................................... 1

Hearings .................................................................................................................. 2

Questions

on notice and Hansard transcripts ......................................................... 2

Note on ref

erences .................................................................................................. 2

Chapter 2.............................................................................................................. 3

Parliamentary departments and portfolio issues .................................................. 3

Parlia

mentary departments ..................................................................................... 3

Pri

me Minister and Cabinet Portfolio .................................................................... 6

Finance and Deregulation Portfolio ....................................................................... 9

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

Departments and agencies under the Committee's oversight ............................ 15

Parliament ............................................................................................................. 15

Pri

me Minister and Cabinet Portfolio .................................................................. 15

Finance and Deregulation Portfolio ..................................................................... 15

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

Index to Hansard transcripts ................................................................................ 17

Monday, 27 May 2013 ......................................................................................... 17

Wednesday, 29 May 2013 .................................................................................... 17

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Chapter 1

Budget Estimates 2013–14

1.1 On 14 May 2013, the Senate referred the following to the Senate Finance and Public Administration Legislation Committee (the committee):

 Particulars of proposed expenditure in respect of the year ending on

30 June 2014;

 Particulars of certain proposed expenditure in respect of the year ending on

30 June 2014; and

 Particulars of proposed expenditure in relation to the parliamentary

departments in respect of the year ending on 30 June 2014.

Portfolio coverage 1.2 The committee has responsibility for examining the expenditure and outcomes of the following:

 Parliament;

1

 Prime Minister and Cabinet Portfolio; and

 Finance and Deregulation Portfolio.

Portfolio Budget Statements 1.3 The Portfolio Budget Statements (PBS) for 2013–14 for the parliamentary departments and portfolios under the committee's oversight were tabled on 14 May 2013. The committee notes in this year's statements some agencies have consoli

dated existing programs or outcomes and some have moved to reporting at program level rather than at the program component level. These included the Department of the Parliamentary Services, the Department of the Prime Minister and Cabinet (PM&C), the Australian National Audit Office and the Australian Public Service Commission. The committee notes the explanation included in the PM&C Portfolio Budget Statement that:

The changes to the level of disclosure, and the consolidation of programs, in the 2013–14 PB Statements does not reduce the transparency of information, nor does it change the accountability of PM&C. The level of disclosure reflects the current and future direction of PM&C and ensures readability is consistent across agency statements in line with guidance set by the Department of Finance and Deregulation.2

1 As a matter of comity between the Houses neither House inquires into the operations of the other House. For this reason, neither the annual report of, nor the proposed expenditure for, the Department of the House of Representatives is referred to a Senate committee for review.

2 Portfolio Budget Statements 2013–14, Prime Minister and Cabinet Portfolio, p. 21.

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Hearings 1.4 The committee held public hearings from Monday 27 May to Thursday 30 May 2013. The parliamentary departments were examined on 27 May, the Prime Minister and Cabinet Portfolio on 27 and 28 May, and the Finance and Deregulation Portfolio on 29 and 30 May 2013.

1.5 The committee took evidence from the President of the Senate, Senator the Hon. John Hogg; Senator the Hon. Stephen Conroy, Minister for Broadband, Communications and the Digital Economy and Leader of the Government in the Senate, and Senator the Hon. Jan McLucas, Minister for Human Services, representing the Prime Minister; and Senator the Hon. Penny Wong, Minister for Finance and Deregulation, together with officers of relevant departments and agencies. The committee expresses its appreciation for the assistance of the President, Ministers and the officers who appeared before it.

1.6 The Office of the Commonwealth Ombudsman and the Office of the Inspector-General of Intelligence and Security were released from the hearing on 28 May 2013 without examination, while the following agencies were not required to attend the hearings:

 Albury-Wodonga Development Corporation;

 ASC Pty Ltd;

 Australian River Co Ltd;

 Independent National Security Legislation Monitor;

 National Australia Day Council; and

 COAG Reform Council Secretariat.

Questions on notice and Hansard transcripts 1.7 Most departments and agencies provided answers to questions on notice from the additional estimates hearings in February this year by the due date of 2 April 2013. However, the committee again notes the late submission of a number of answers to questions on notice for the Finance and Deregulation Portfolio, with only six out of a total of 97 outstanding answers provided by the due date.

1.8 The committee has set 12 July 2013 as the date for the return of answers to questions on notice arising from the Budget Estimates hearings. This information, together with the Hansards transcripts of proceedings of hearings, are published on the committee's website at:

http://www.aph.gov.au/Parliamentary_Business/Committees/Senate_Committees?url= fapa_ctte/estimates/bud_1314/index.htm

Note on references 1.9 References to the estimates Hansard are to the proof Hansard; page numbers may vary between the proof and the official Hansard transcript.

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Chapter 2

Parliamentary departments and portfolio issues 2.1 This chapter summarises some of the matters raised during the committee's hearings on the Budget Estimates 2013–14.

Parliamentary departments

Department of the Senate

2.2 The committee thanks the Department of the Senate for again providing, in advance of the hearings, a report on recent trends in committee workload. This report indicated continuing high levels of workload in the committee office, and which were comparable to the levels in the previous parliament. In response to questions on the committee office workload, the Clerk of the Senate advised the committee that there had been a modest increase in committee resources. In addition, moving staff and distributing work across committee office staff is also used to address the demands of the increased and uneven workloads across committee secretariats.1

2.3 The committee followed-up on what appeared to be a discrepancy between earlier evidence of the Department of the Senate and the Department of Parliamentary Services (DPS) concerning consultation with the Parliament House architect on the new Senate meeting rooms.2 This was later clarified by DPS which confirmed that

formal moral rights consultation had been undertaken with Mr Romaldo Giurgola.3

2.4 Other areas of interest to the committee included the contract for the rolling refurbishment program for furniture in senators' suites, and staff movements and rotations.4

Parliamentary Budget Office

2.5 Prior to the hearing, the Parliamentary Budget Office (PBO) provided the committee with a report on the office's key performance and staffing data. The committee welcomes PBO's advice that it proposes to provide a report of this nature before each estimates hearing.5

2.6 The committee commenced examination of the PBO with requests for an update on staffing and workloads in the office.6 In response to questions concerning the PBO's access to information from departments and agencies, the Parliamentary Budget Officer advised that there has been a positive response and is continuing to

1 Committee Hansard, 27 May 2013, p. 4.

2 Committee Hansard, 27 May 2013, p. 5.

3 Committee Hansard, 27 May 2013, p. 29.

4 Committee Hansard, 27 May 2013, pp 3–4 and 5–6.

5 Committee Hansard, 27 May 2013, p. 8.

6 Committee Hansard, 27 May 2013, pp 7–9.

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improve.7 However, he noted restrictions in accessing detailed taxpayer-protected confidential information from the Australian Taxation Office (ATO). At present, the PBO can only obtain a one per cent de-identified sample, compared to a 16 per cent de-identified sample available to the Treasury. He further advised that legislation is currently before the Parliament which would provide the PBO with the same access to ATO information as the Treasury and noted that '[i]t is important for us to have that access if our costings are going to be as credible as the Treasury revenue costings.'8

2.7 The PBO was also questioned on the report, Estimates of the structural budget balance of the Australian Government 2001–02 to 2016–17 released by the PBO on 22 May 2013. Senators sought details concerning the timing of the release, modelling and the peer review process.9

Department of Parliamentary Services

2.8 The Secretary of DPS provided a detailed opening statement to the committee which included an update on the finalisation of the senior management team, the reforms to governance arrangements, and the implementation of cultural change.10

2.9 The committee was advised of the trial, beginning in the sitting period commencing 17 June 2013, of removing Hansard editors from the two main chambers other than for question time. The Secretary of DPS explained that this would remove the need for staff to walk to and from the chambers, and therefore reduce overtime requirements each day by approximately one hour. There would also be a benefit to work health and safety.11 Senators sought further information on the reasons for the trial, the timing of the trial and lack of consultation with the Hansard reporters and editors who undertake this work. The committee was advised that senior Hansard staff were of the view that the trial was best conducted in a busy time to provide the most effective test of this change.12

2.10 DPS was also questioned on the reconfiguration of editor booths in the Hansard area to create offices and meeting rooms in order to accommodate other sections of the department which have vacated space for staff of the PBO. Senators again asked about the level of consultation with staff on these changes and the Secretary advised that some consultation had occurred but undertook to provide on notice the exact level.13

7 Committee Hansard, 27 May 2013, p. 9.

8 Mr Phil Bowen PSM, Parliamentary Budget Officer, Committee Hansard, 27 May 2013, p. 10.

9 Committee Hansard, 27 May 2013, pp 11–19.

10 Committee Hansard, 27 May 2013, pp 19–20.

11 Committee Hansard, 27 May 2013, p. 20.

12 Committee Hansard, 27 May 2013, p. 28.

13 Committee Hansard, 27 May 2013, p. 30.

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2.11 Given the importance of Hansard to the Parliament, the committee subsequently undertook a tour of the Hansard offices to observe the progress of the trial and reconfiguration of the office space.

2.12 In light of the evidence that visitor numbers to Parliament House were up 30,000 from the same period last year, the committee sought reasons on the need for the current review of visitor services costing $245,000. The Secretary of DPS responded:

The review we are undertaking at the moment has two elements. One is that we have created, as part of our restructure, a new Parliamentary Experience Branch, which will include Visitor Services staff within it. But we are also doing a much broader review of other ways we can expand the visitor experience in Parliament House. Included in that is looking at our arts services programs, our event management and so on.14

2.13 In response to questioning about the cost of the review, the Secretary assured the committee that:

I am very confident that we will gain revenue benefit from this review that will more than compensate for the cost of it…

It will look at ways in which we can best structure ourselves, but it is principally around revenue raising and ensuring that we provide a contemporary service to people who use this building—in terms of individual visitors but also people who attend events. 15

2.14 One particular area of interest was the tender process for the contract for the review of visitor services. The committee was advised that 12 applications were submitted and the tender evaluation panel made its assessment against the documentation provided by the tenderers and no interviews were conducted.16 The committee will closely monitor the outcome of this review.

2.15 The committee sought an update on the progress of completion of the document, The Architect's Design Intent for Parliament House Canberra: Central Reference Document (Central Reference Document–CRD). It was advised that, although it was viewed by the department as a critical document, because of resourcing and prioritisation issues, DPS has prioritised the completion of conservation management plan (CMP). The Secretary stated:

We see a very direct link between the material that is available in the existing central reference document, the original tender documents, a lot of the papers and materials that were developed during the construction period of the building, the plans we hold, and other material, such as speeches and articles by Mr Giurgola. These all form part of the basis of material that

14 Ms Carol Mills, Secretary, Department of Parliamentary Services, Committee Hansard, 27 May 2013, p. 22.

15 Ms Carol Mills, Secretary, Department of Parliamentary Services, Committee Hansard, 27 May 2013, pp 22–23.

16 Committee Hansard, 27 May 2013, pp 40–41.

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will be used by the consultants in writing the conservation management plan.

If, in doing that plan, they find particular limitations in any areas, that might be enhanced by the central reference document. We would potentially reprioritise those particular elements. But at this stage the first and foremost exercise is to develop the conservation management plan.17

2.16 As the committee indicated in its final report on the inquiry into the performance of DPS, it acknowledges the importance of the CMP, but it reiterates its support for the completion of the CRD.18 The committee will continue to monitor the

progress toward completion of the CRD document.

2.17 Other areas of interest to the committee during examination of DPS were the transfer of information and communication technology (ICT) from the Department of Finance and Deregulation to DPS, events relating to the 25th anniversary of Parliament House, possible introduction of paid parking in the Parliament House car park, recent recruitment of staff in the department, and an update on the condition of the marble façade.

Prime Minister and Cabinet Portfolio

Department of the Prime Minister and Cabinet

2.18 The committee revisited the topic of the newly established Australian Cyber Security Centre and requested an update on progress. The committee heard that the centre's board of governance has been established, a coordinator from the Defence Signals Directorate has been appointed, and a decision on the centre's location was expected to be made by mid-June.19 In relation to its functions, it was confirmed that its operations were defensive only and aimed at protecting Australian networks.20

2.19 The committee sought information on aspects of the National Disability Insurance Scheme (NDIS), including details of consultation processes between the Commonwealth and other jurisdictions with regard to board appointments, the processes leading to the proposal to increase the Medicare levy to part-fund the NDIS, and progress on the finalisation of the NDIS rules.21

2.20 The Department of the Prime Minister and Cabinet (PM&C) was also questioned in some detail on the case of the Australian citizens, Mr Matt Joyce and Mr Marcus Lee, who faced charges in the United Arab Emirates. In particular,

17 Ms Carol Mills, Secretary, Department of Parliamentary Services, Committee Hansard, 27 May 2013, p. 43.

18 Senate Finance and Public Administration Legislation Committee, The Performance of the Department of Parliamentary Services – Final Report, November 2012, p. 44.

19 Committee Hansard, 27 May 2013, p. 62.

20 Committee Hansard, 27 May 2013, p. 85.

21 Committee Hansard, 27 May 2013, pp 63–67.

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senators sought details of briefings for, and representations by, the Prime Minister. Questioning on this topic was covered over both days of PM&C's appearance.22

2.21 Senators also questioned PM&C about the processes, including consultation with the Prime Minister, around the re-appointment of two office holders. In the first instance, the committee sought details on the re-appointment the Australian Electoral Commissioner, which was announced on 12 April 2013. The expiry of the Commissioner's current term was noted as being 4 January 2014 and questioning focussed on the timing of the re-appointment. The processes leading to the re-appointment of the Chief Executive Officer (CEO) of the Indigenous Land Corporation were also canvassed.23

2.22 A range of other topics were also pursued during the committee's examination of PM&C, including the programs and expenditure for the social inclusion unit; funding for independent schools under the National Plan for School Improvement; the blocking of Australian websites under section 313 of the Telecommunications Act 1997; security clearance processes for staff of the Prime Minister's Office; the cost and size of the delegation to the Rio+20 United Nations Conference; and the staffing, costs and forward agenda of the Council of Australian Governments.

Office of the Official Secretary to the Governor-General

2.23 The Official Secretary to the Governor-General provided a summary of the work undertaken by the Governor-General since the last estimates hearing in February. The committee then briefly examined the Office and focussed questioning on the timing of the appointment of the new Governor-General.24

2.24 The Official Secretary advised the committee:

My office is not involved in any way in the selection of a new Governor-General. There is no prescribed time frame for that. I think it would be beyond my terms of reference to comment.25

Australian National Audit Office

2.25 During examination of the Australian National Audit Office (ANAO), the committee canvassed issues associated with the Public Governance, Performance and Accountability Bill 2013. The Chair noted at the beginning of questions that the Bill has been referred to the committee and that it is general practice not to allow questioning on bills currently before committees. However, the Chair further advised that as the committee has indicated that it will not be undertaking an inquiry into this Bill, questions pertaining to the Bill would be permitted.26

22 Committee Hansard, 27 May 2013, pp 100-108; and Committee Hansard, 28 May 2013, pp 15-17.

23 Committee Hansard, 28 May 2013, pp 18–21.

24 Committee Hansard, 27 May 2013, pp 45–47.

25 Mr Stephen Brady CVO, Official Secretary to the Governor-General, Committee Hansard, 27 May 2013, p. 47.

26 Committee Hansard, 28 May 2013, pp 24–25.

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2.26 In particular, the committee sought the Auditor-General's views about the adequacy of the consultation period for the Bill. The Auditor General responded:

I guess I was making the point that, perhaps in different circumstances, some more time for consultation in respect of a draft bill would have been, I think, helpful to increase the awareness of the proposals within it and to bring everyone on board with the new approach. There are some good ideas in it as well, which I mentioned. I appreciate these matters of timing are matters for the government at the end of the day, but I was just comparing it, essentially, with prior cases where Finance has had the opportunity to consult more broadly on legislative provisions.

…

I think it could be made to work, and my point was that, if we had a bit more time, it could be refined to further the objectives which the government is seeking to achieve through the legislation.

…

…I would have thought that a further six months to allow consultation on the specific legislation would have been desirable to get the feedback, because there will be many bodies who will not have seen the legislation in detail ahead of when it was introduced into the parliament.27

2.27 The committee also questioned the ANAO on the performance audits of Treasury's preparation of tax expenditure statements and the methodology used.28

Australian Public Service Commission

2.28 The committee pursued a range of topics during examination of the Australian Public Service Commission, including the level of data collected by agencies on unscheduled absences, costs associated with unscheduled absences, the handling of a complaint by Ms Melinda Tankard Reist concerning a tweet by an officer of the ATO, the number and trends of APS employees, employee engagement, levels of bullying and harassment, and the Public Governance, Performance and Accountability Bill 2013. In addition, the committee canvassed the implementation of the recommendations of the report, Ahead of the game: Blueprint for the reform of the Australian government administration concerning an APS culture of continuous improvement.29

National Mental Health Commission

2.29 The committee acknowledged the contribution of Ms Robyn Kruk AM, the founding CEO of the National Mental Health Commission (NMHC) after she noted her imminent retirement.30

27 Mr Ian McPhee, Auditor-General, Committee Hansard, 28 May 2013, pp 24–26.

28 Committee Hansard, 28 May 2013, pp 26–30.

29 Committee Hansard, 28 May 2013, pp 30–42 and 47–54.

30 Committee Hansard, 28 May 2013, p. 43.

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2.30 The NMHC was briefly examined on a range of issues, including the appointment process for a new CEO, the role of commissioners, the role and level of involvement of the NMHC in recent government mental health initiatives, and an update on the progress of implementation of recommendations of the national report card.31

Office of National Assessments

2.31 The committee questioned the Office of National Assessments (ONA) about the convention not to release content of assessments, citing an example where information previously sought by the committee, was not provided on this basis. The Director-General of ONA confirmed the continuation of the longstanding practice of successive directors-general of not commenting on intelligence issues in public.32 In

light of this advice, the committee then questioned ONA about its annual exchange with the Lowy Institute for International Policy and asked whether there was inconsistency with the practice of not releasing content of assessments. The Director-General responded:

I understand the point you are making. I think there is a distinction. I am not trying to split hairs here. To take the example of the question you asked earlier, it was a very specific question about an ONA view about a specific issue. That would go directly to the contents of ONA assessments which are provided to the government and we would not discuss those with Lowy in that form. We just would not.

…

We do not have discussions with Lowy about ONA assessments and do not talk to Lowy about the analytical judgements that we are providing to government. I will fall back upon the example I provided. It is possible to have a discussion about the global economy and where it is headed with experts outside of government without crossing those lines.33

Finance and Deregulation Portfolio

Department of Finance and Deregulation

2.32 The committee questioned officers from the Department of Finance and Deregulation (Finance) on a range of areas within the Budget documentation. Clarification was sought on the expense measures figure, decisions taken but not yet announced in the Budget, and savings expected over a 10 year period as a result of not proceeding with the 2012–13 Budget measure, Spreading the Benefits of the Boom.34 The department also provided detailed year-by-year gross figure costs of the NDIS.35

31 Committee Hansard, 28 May 2013, pp 42–47.

32 Committee Hansard, 28 May 2013, p. 55.

33 Mr Richard Maude, Director-General, Office of National Assessments, Committee Hansard, 28 May 2013, p. 57.

34 Committee Hansard, 29 May 2013, pp 13–17.

35 Committee Hansard, 29 May 2013, pp 19–22.

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2.33 The committee asked about the implementation processes for the new Commonwealth Grant Guidelines which come into effect on 1 June 2013, and sought and update on the progress on the AusGrant initiative.36

2.34 Referring to the department's most recent annual report, the committee sought an explanation of the 3.1 per cent variation between the original budget estimate of expenses and the final budget outcome (FBO) for 2011–12. This compared to the key performance indicator of a maximum difference between the original estimate and the FBO, on an accrual basis, of 1.5 per cent. The Secretary of the Department advised the co

mmittee:

I can talk in general terms about what we tried to do to ensure the accuracy of the estimates, and I think we have been through some of this before. The way I see it is that it is basically a continuous improvement exercise. We try and work very hard with agencies who are responsible for the estimates to ensure that they have the best available models for modelling expenditure. It is a particular difficult task in relation to demand-driven programs, which generally tend to be the large ones. Those are things like the age pension, family tax benefit and so forth. They are big programs, and very small changes in the number of people eligible or the average rates of payments can have very major financial consequences.

It is important to us and important to the government of the day that those estimates be as accurate as they possibly can be. We do not always get it right—quite clearly we do not. But we do reasonably well. We keep working on the models. Where we see the final outcome varying from the estimate—particularly if it is an estimate that was made reasonably late in the piece—we would go back to an agency and say: 'Look, this model does not seem to be predicting this correctly or close enough. Let's sit down jointly and work our way through to see if we can improve the accuracy for the next time around.' We do that on the big programs. That is a process.37

2.35 The committee also questioned Finance extensively on the modelling of forward expenditure in relation to irregular maritime arrivals (IMAs). The Secretary explained that it is a complicated system and provided a detailed response to the committee. He began by outlining the cost drivers, which include the number of IMAs already in Australia, the forecasts of arrivals over the forward estimates, operational decisions as to how IMAs are placed in the detention network, and the length of time taken to resolve asylum claims.38 He emphasised that the estimates of the number of arrivals is a volatile figure and conceded that 'I would go so far as to say that this is the most difficult part of the budget for us on the expenses side to estimate and get right.'39

36 Committee Hansard, 29 May 2013, pp 23–25.

37 Mr David Tune, Secretary, Department of Finance and Deregulation, Committee Hansard, 29 May 2013, p. 29.

38 Committee Hansard, 29 May 2013, p. 29.

39 Committee Hansard, 29 May 2013, p. 30.

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2.36 In relation to the current budget, he explained:

You will notice that in this year's budget that there is a large increase in the allocation for IMAs. That is driven by two things: the number of arrivals— the stock that has come into the country in recent times—and the estimate. We have adjusted the estimate for 2013–14 and 2014–15. Also, because of this new model, we actually have a lower unit cost. So we have higher numbers but a lower unit cost. That still gives you a big increase in the estimate. That is basically the story.

The other bit that I should add is that because of this huge volatility in the number of arrivals we have come to the view that it is really not feasible— not sensible—to try and push the estimated number of arrivals out too far. You will notice in that box that I talked about that is on page 6-50 in Budget Paper No. 1 that we have decided to move to a projection based model. The first two years are estimates that go into the budget. The latter two years of the forward estimates are projections. In effect, we use a technical assumption for the last two years. The technical assumption that we have adopted—because we are trying to get the trend for planning purposes—is the 10-year moving average. That leads to those figures being derived for the two latter years of the forward estimates.40

2.37 The committee asked Finance a series of questions on regulation policy. Senators sought an update on the processes and progress of the review of the Office of Best Practice Regulation handbook and were advised that the department was on track to meet its target release of 1 July 2013. The committee also asked about the treatment of election policies in the handbook, that is, whether they are subject to a regulation impact statement (RIS). It was confirmed that current arrangements would continue, where all policies are subject to the RIS requirements, but only an implementation RIS is required for election commitments.41

2.38 The Minister and Finance officers provided a detailed description of objectives and intended benefits of the proposed reforms under the Public Governance, Performance and Accountability Bill 2013.42 The committee again raised the issue of consultation processes and, in particular, whether suitable time has been allocated for consideration of the legislation. It was noted that, prior to the release of the legislation, there was a 30-month consultation period. The Minister elaborated:

If I had put out a draft bill without all of that consultation and had longer, I would not get the criticism you are just making but I would get criticism because the bill would not have been worked through a consultative process before it was actually put out. You cannot dismiss 30 months of very detailed consultation, including on the proposition document, which really was fining down what the bill would look like, and the broader framework. I do not think it is reasonable to dismiss that process and just say we have

40 Mr David Tune, Secretary, Department of Finance and Deregulation, Committee Hansard, 29 May 2013, p. 30.

41 Committee Hansard, 29 May 2013, p. 33.

42 Committee Hansard, 29 May 2013, pp 50–53.

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had five or six weeks on the bill. We have 2½ years of consultation on this.43

2.39 The Secretary also addressed the timing of the legislation and the impact on the commencement date:

My view is that we have about a year's work ahead of us if the bill is passed to do the rules and go through the consultation around that—bring it back to the JCPAA discussions and various other fora. We can toss more resources at that, and we would if it were necessary. The other issue here is that you really need to commence this at the beginning of a financial year, otherwise you have chaos. It is either 1 July 2014 or it is July 2015–16, or whatever. That is the key point: if we do not have it now, we lose a year, basically.44

2.40 Other areas of interest to the committee during examination of Outcome 1 of Finance included, progress of the COAG Business Advisory Forum, the budget treatment of the Clean Energy Finance Corporation following the budget mandate direction issued on 16 April 2013, forward estimates for the National Plan for School Improvement, operations of the Independent Communications Committee and details of two recent government advertising campaigns.

2.41 On the final day of hearings, the committee's questioning centred on issues under Outcomes 2 and 3 of Finance, including requirements for maintaining or archiving old websites, accessibility of government websites by mobile devices, cloud computing policy and strategic direction, an update on construction projects, parliamentarians travel entitlements, processes for checking compliance with parliamentarians printing and communication entitlements, and the transfer of electorate ICT service to DPS.

Future Fund Management Agency

2.42 The committee began its examination of the Future Fund Management Agency (FFMA) with questions concerning investment performance against relevant market performance. The FFMA reported that across its portfolio the agency was ahead of expectations and doing well relative to market trends.45

2.43 The committee asked about processes leading to the decision to exclude primary tobacco producers from the portfolio. The agency confirmed that there was no intervention by government in taking this decision. It further advised that during consideration of its tobacco holdings, the Board reviewed the overall exclusions policy and determined that there would be no other additional exclusions in addition to land mines and cluster munitions.46

43 Senator the Hon. Penny Wong, Minister for Finance and Deregulation, Committee Hansard, 29 May 2013, p. 55.

44 Mr David Tune, Secretary, Department of Finance and Deregulation, Committee Hansard, 29 May 2013, p. 56.

45 Mr David Neal, Chief Investment Officer, Future Fund Management Agency, Committee Hansard, 29 May 2013, p. 5.

46 Committee Hansard, 29 May 2013, p. 6.

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2.44 An explanation was sought on the reason for the difference in the accounting methodology for unfunded superannuation liability between the budget and final budget outcome figure. It was explained to the committee the reason for the difference in the projected figures and the ex post figures is a discount rate issue:

The unfunded superannuation liability as at 30 June is expected to be around $143 billion…Accounting standards require us to use the long-term bond rate, which has been around three per cent. In looking at the forward projections, we use the actuarially determined earnings rate on the fund, which is around six per cent. So the variance between the final budget outcome figure from last and the figure I have just quoted is explained in large part by the discount rate that is being used.47

2.45 The committee also engaged the FFMA in discussion about its investment policy and how it factors in differing views and predictions on the global economy. The FFMA responded:

It is really about trying to build a portfolio that we believe still has within it the return potential to deliver against our mandate over the long term whilst being as protected as we can be—we cannot fully protect the portfolio— from those sorts of outcomes. Obviously the amount of protection that we build into the portfolio—the amount of lower risk investments that we put in—reflects our view as to how much we believe or do not believe that Adrian Blundell-Wignall may be right and the balance of opinion that we strike there. But the core is to make sure that you always have a portfolio that is as diversified as possible for those outcomes. That is really the key.48

2.46 The committee also raised the issue of management of conflicts of interest, particularly in relation to senior staff leaving and returning to the organisation,49 and the agency's acquisition of a share in Perth airport and the alleged threats of legal action concerning its valuation.50

ComSuper and Commonwealth Superannuation Corporation

2.47 The issue of workplace bullying within ComSuper was raised. When questions about a specific complaint were asked, the Minister expressed concern that estimates hearings are not the appropriate place to pursue individual grievances. The committee then sought general details on the number of complaints and the processes for dealing with complaints within the organisation.51

2.48 Other matters raised included, the impact of the policy to increase the tax for those earning more than $300,000 a year for defined benefits scheme members, and

47 Dr Stein Helgeby, Deputy Secretary, Governance and Resource management Group, Department of Finance and Deregulation, Committee Hansard, 29 May 2013, pp 6–7.

48 Mr David Neal, Chief Investment Officer, Future Fund Management Agency, Committee Hansard, 29 May 2013, p. 11.

49 Committee Hansard, 29 May 2013, p. 8.

50 Committee Hansard, 29 May 2013, p. 9.

51 Committee Hansard, 29 May 2013, pp 38–39.

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management of conflicts of interest of board members with multiple directorships across superannuation boards.52

Medibank Private

2.49 The CEO of Medibank Private provided a detailed opening statement which updated the committee on current issues, including the increase of 10 per cent in payments of benefit costs, the impact of changes to products – such as the means testing of the rebate, the reformulation of the second brand AHM, membership growth, the launch of Anywhere Healthcare, and the operation of Garrison Health Services which provides services to the Australian Defence Force.53

2.50 A range of topics were covered during examination of Medibank Private, including non-health related business, the impact of the Private Health Insurance Administration Council seeking to extend its supervisory jurisdiction, the 24-hour nurse advice line, the Medibank community fund, and research on mental health.54

Australian Electoral Commission

2.51 The committee took evidence from the Australian Electoral Commission on a range topics, including discrepancies between donor disclosure and party disclosure; the definition of 'associated entities' and processes for determining if an organisation is deemed to be an associated entity, particularly in regard to GetUp!; differing disclosure threshold amounts for donations across different jurisdictions; an update on planning and preparations for the federal election and referendum; automatic enrolment; the offence of multiple voting; and the timing and processes regarding the reappointment of the Electoral Commissioner.55

Senator Helen Polley Chair

52 Committee Hansard, 29 May 2013, pp 40–43.

53 Committee Hansard, 30 May 2013, pp 4–5.

54 Committee Hansard, 30 May 2013, pp 5–16.

55 Committee Hansard, 30 May 2013, pp 47–74.

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Appendix 1

Departments and agencies under the Committee's oversight Parliament  Department of the Senate

 Parliamentary Budget Office

 Department of Parliamentary Services

Prime Minister and Cabinet Portfolio  Department of the Prime Minister and Cabinet

 Australian National Audit Office

 Australian Public Service Commission

 Independent National Security Legislation Monitor

 National Australia Day Council

 National Mental Health Commission

 Office of National Assessments

 Office of the Commonwealth Ombudsman

 Office of the Inspector-General of Intelligence and Security

 Office of the Official Secretary to the Governor-General

Finance and Deregulation Portfolio  Department of Finance and Deregulation

 Albury-Wodonga Development Corporation

 ASC Pty Ltd (formerly the Australian Submarine Corporation)

 Australian Electoral Commission

 Australian River Co. Limited

 ComSuper

 Commonwealth Superannuation Corporation

 Future Fund Management Agency

 Medibank Private Limited

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Appendix 2

Index to Hansard transcripts1

Page

Monday, 27 May 2013

Parliament

Department of the Senate ................................................................................................ 3

Parliamentary Budget Office ........................................................................................... 7

Department of Parliamentary Services ......................................................................... 19

Prime Minister and Cabinet Portfolio

Office of the Official Secretary to the Governor-General ............................................. 45

Department of the Prime Minister and Cabinet ............................................................. 47

Tuesday, 28 May 2013

Prime Minister and Cabinet Portfolio (continued)

Department of the Prime Minister and Cabinet ............................................................... 4

Australian National Audit Office .................................................................................. 24

Australian Public Service Commission ................................................................... 30, 47

National Mental Health Commission ............................................................................ 42

Office of National Assessments .................................................................................... 54

Wednesday, 29 May 2013

Finance and Deregulation Portfolio

Future Fund Management Agency .................................................................................. 4

Department of Finance and Deregulation ................................................................ 12, 43

ComSuper and Commonwealth Superannuation Corporation ...................................... 38

1 Hansard page numbers referred to in this appendix are based on proof Hansards. Page numbers may vary slightly in the final Office Hansard transcripts.

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Thursday, 30 May 2013

Finance and Deregulation Portfolio (continued)

Medibank Private Limited ............................................................................................... 4

Department of Finance and Deregulation ................................................................ 16, 74

Australian Electoral Commission .................................................................................. 47

164

The Senate

Foreign Affairs, Defence and Trade

Legislation Committee

Budget estimates 2013–14

June 2013

165

© Commonwealth of Australia ISBN 978-1-74229-865-8

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

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Membership of the Committee Core Members

Senator the Hon Ursula Stephens, ALP, NSW (Chair) Senator Alan Eggleston, LP, WA (Deputy Chair) Senator Mark Bishop, ALP, WA Senator David Fawcett, LP, SA Senator Scott Ludlam, AG, WA Senator Anne McEwen, ALP, SA

Secretariat

Dr Kathleen Dermody, Secretary Mr Owen Griffith, Principal Research Officer Miss Jedidiah Reardon, Senior Research Officer Ms Penny Bear, Research Officer Ms Jo-Anne Holmes, Administrative Officer

Senate Foreign Affairs, Defence and Trade Committee Department of the Senate PO Box 6100 Parliament House Canberra ACT 2600 Australia

Phone: + 61 2 6277 3535 Fax: + 61 2 6277 5818 Email: fadt.sen@aph.gov.au Internet: http://www.aph.gov.au/senate_fadt

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TABLE OF CONTENTS

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

Report to the Senate ..................................................................................................... 1

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

Questions on notice ................................................................................................ 1

Defence portfolio .................................................................................................... 1

Department of Defence........................................................................................ 1

Department of Veterans' Affairs.......................................................................... 6

Australian War Memorial .................................................................................... 8

Foreign Affairs and Trade portfolio ....................................................................... 9

Department of Foreign Affairs and Trade ........................................................... 9

DFAT trade programs, Australian Trade Commission, and Export Finance and Insurance Corporation ................................................................................ 13

Australian Agency for International Development ........................................... 13

Acknowledgements .............................................................................................. 15

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

Tabled documents ................................................................................................... 17

Defence portfolio .................................................................................................. 17

Foreign Affairs and Trade portfolio ..................................................................... 17

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Senate Foreign Affairs, Defence and Trade Legislation Committee Report to the Senate

Introduction 1.1 On 14 May 2013, the Senate referred the following documents to the committee for examination and report:

• Estimates of proposed expenditure for 2013–2014 relating to the Defence

portfolio and the Foreign Affairs and Trade portfolio;

• Particulars of proposed expenditure in respect of the year ending on

30 June 2014 [Appropriation Bill (No. 1) 2013–2014]; and

• Particulars of certain proposed expenditure in respect of the year ending on

30 June 2014 [Appropriation Bill (No. 2) 2013–2014].1

1.2 The committee conducted public hearings with the Defence portfolio on 3 and 4 June 2013 and the Foreign Affairs and Trade portfolio on 5 and 6 June 2013. The committee received evidence from the Parliamentary Secretary for Defence, Senator the Hon David Feeney, representing both the Minister for Defence and the Minister for Veterans' Affairs, and from officers from the relevant departments and agencies. The committee also received evidence from Senator the Hon Bob Carr, Minister for Foreign Affairs, also representing the Minister for Trade, and from officers from the relevant departments and agencies.

1.3 Links to the transcripts of these public hearings and to answers and additional information are available on the committee's internet site at: http://www.aph.gov.au/Parliamentary_Business/Committees/Senate_Committees?url= fadt_ctte/estimates/bud_1314/index.htm

Questions on notice 1.4 In accordance with Standing Order 26(9)(a), the committee agreed that the date for the return of written answers in response to questions placed on notice would be 26 July 2013.

Defence portfolio

Department of Defence

1.5 The committee acknowledged the attendance of Air Marshall Mark Binskin AO, Vice Chief of Defence Force (Acting CDF on 3 June 2013); Mr Warren King, the Chief Executive Officer of Defence Materiel Organisation (DMO), and officers of the

1 Journals of the Senate, No. 144, 14 May 2013, p. 3915.

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Defence organisation.2 On 4 June 2013, the committee also welcomed General David Hurley AC, DSC, Chief of the Defence Force (CDF).3

Acting Chief of the Defence Force's opening statement

1.6 Air Marshall Binskin, Acting CDF, made an opening statement. He began by conveying the CDF's apologies to the committee. The CDF was unavailable on the first day of the Budget estimates hearings as he was returning from a visit to Australian personnel in Afghanistan, with the minister.

1.7 Air Marshall Binskin remarked on the timeliness of the CDF's visit to Afghanistan. He noted that 'we are in a significant phase in our mission as Afghanistan moves towards final transition when the Afghan National Security Forces will take full responsibility for their country's security.'4

1.8 Air Marshall Binskin provided an operational update on the transition in Uruzgan province. He commented that:

In Uruzgan, the locals are encouraged by the progress they have witnessed in the province over the last decade. Early last month, representatives from the Australian War Memorial conducted a series of interviews with six eminent people from different tribes and professions in Uruzgan. All six spoke highly of Australian Defence Force personnel, and without exception they conveyed that respect and appreciation for the sacrifices of the Australian government, its people and, in particular, for the families of those Australians who have given their lives in Afghanistan. The six people who were interviewed have the benefit of hindsight. They remember what Uruzgan was like before the coalition arrived, and they were able to contrast that with the way that they see the province today. In their view, Australia's efforts have brought about positive change. They praised Australia's work to improve infrastructure, irrigation, schools and roads. For some, the changes that they have witnessed over the past decade in Uruzgan have surpassed expectations.5

1.9 According to Air Marshall Binskin the Australian Defence Force (ADF) still has 'a great deal of work ahead' as the transition comes the end.6 He also commented on other ADF operations, including contributions to five peacekeeping operations in the Middle East and North Africa; and the ADF's contribution to maritime and border protection.7

2 Proof Committee Hansard, 3 June 2013, p. 3.

3 Proof Committee Hansard, 4 June 2013, p. 5. 4 Proof Committee Hansard, 3 June 2013, p. 4.

5 Proof Committee Hansard, 3 June 2013, p. 5.

6 Proof Committee Hansard, 3 June 2013, p. 5.

7 Proof Committee Hansard, 3 June 2013, pp. 5–6.

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1.10 Air Marshall Binskin's opening statement also included an update on the winding down of Australia's operations in East Timor and the Solomon Islands.8

1.11 Other topics examined during the hearing on 3 June 2013 included:

Outcome 1

Program 1.1 Office of the Secretary and the Chief of Defence Force

• Funding for acquisitions contained in the Defence White Paper 2013 (pp. 6–7)

• Public Defence Capability Plan to be released end June 2013 (pp. 7–8)

• Funding for proposed first and second pass approvals for 2013–14 (pp. 8–13)

• Absorbed expense measures—including the Australian Cyber Security Centre

and the Defence Abuse Response Taskforce (pp. 14–15, 16–20)

• Change of name from Defence Signals Directorate to Australian Signals

Directorate (pp. 15–16)

• Funding breakdown for Growler (pp. 21–23, 26–27)

• Bulk fuel installations (pp. 24–28)

• Cost of the launch of the Defence White Paper 2013 (pp. 28–29, 30)

• Cost of the Defence White Paper 2013 itself (pp. 29–30)

• Granularity of the budget papers and the Defence Capability Plan (pp. 31–35)

• Strategic Reform Program (pp. 35–36)

• The decision not to proceed with establishing a fleet base in Brisbane (pp. 36–37)

• Berthing of cruise ships at Garden Island (pp. 37–39)

• Transition from Afghanistan—movement of troops and equipment out of

Afghanistan, protocols for disposals, costs associated with the transition (pp. 39–47, 55)

• Defence White Paper 2013—Climate change (pp. 48–49)

• Defence White Paper 2013—Policy relating to Unmanned Aerial Vehicles and drones (pp. 49–51)

• Defence White Paper 2013—Rotation of US forces through Australia (pp. 51–56)

• Defence Export Control Office and the Defence Trade Controls legislation

(pp. 56–58)

Program 1.2 Navy Capabilities

• Collins class submarines—full cycle docking, combat systems (pp. 58–64)

• Marine technician recruitment and retention (pp. 64–65)

8 Proof Committee Hansard, 3 June 2013, p. 6.

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• Canberra class ships (p. 66)

• Armidale class fleet and Operation Resolute (pp. 66–67, 70–73)

• HMAS Choules (pp. 67–70)

• HMAS Sydney (pp. 73–74)

• Establishment of a submarine propulsion energy support and integration facility (p. 74)

• Next generation of submarines (pp. 74–76)

• Progress of the Rizzo program (pp. 77–79)

• Costs associated with the Spanish combat supply ship, Cantabria (pp. 79–80)

Program 1.3 Army Capabilities

• Regional force surveillance units (pp. 81–85)

• Defence of the North West (pp. 85–86, 100–101)

• Plan Beersheba (pp. 86–88)

• Armed Reconnaissance Helicopter (ARH) and Multi Role Helicopter (MRH) (pp. 88–90, 100)

• Mortar high explosive initiative (pp. 90–91)

• Army Land Systems Division (pp. 91–93)

• G-Wagons (pp. 93–94)

• Civilian surgical and medical teams during the Vietnam War—repatriation entitlements (pp. 94–99)

• Tender for the lightweight automatic grenade launcher (pp. 99–100)

Program 1.4 Air Force Capabilities

• Joint Strike Fighter (pp. 101–104, 105, 107–108)

• Broad Area Maritime Surveillance (BAMS) program (pp. 104–105)

• Lead-in Fighter Hawk logistic support contract (pp. 105–106)

• C-27J (pp. 106–107)

Program 1.5 Intelligence Capabilities

• Defence Signals Directorate and possible investigation of an unauthorised access to Mr Adam Bandt MP's IT systems (pp. 108–109)

• Australian Government Security Vetting Agency (pp. 109–114)

Program 1.6 Chief Operating Officer—Defence Support and Reform

• Proposed paid parking at Russell (pp. 115–116)

• Contract management oversight (pp. 116–117)

• Base security improvement program (pp. 117–118)

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• Defence Logistics Transformation Program (p. 118)

• Defence lease at Rockhampton (pp. 118–119)

• Hammerhead crane at Garden Island (pp. 120–122)

Program 1.7 Chief Operating Officer—Chief Information Officer

• Telstra contract delays (pp. 124–126)

• IT systems and infrastructure (pp. 126–128)

Program 1.8 Chief Operating Officer—Defence People

• Deployment of Defence staff (pp. 114–115)

1.12 The committee continued hearings on areas under outcome 1 on 4 June 2013. Topics examined included:

Program 1.8 Chief Operating Officer—Defence People

• Recruitment of women into the ADF (pp. 6–10)

• Operational Service Medal (p.10)

• Numbers of senior officers (p. 11)

Program 1.10 Vice Chief of the Defence Force

• Employer Support Payment Scheme (pp. 11–12)

• ADF Family Healthcare Program (pp. 12–14)

• Medibank Health Solutions contract (pp. 14–16)

• General practitioner registrars training with the ADF (pp. 16–17)

• Army reserve units—budget, standard of equipment, need to attract reservists,

number of training days (pp. 17–21)

• Cadets, new cadets units—funding streams (pp. 21–24)

• Black Review and reducing the excessive number of committees—progress

on reforms (pp. 24–26)

• Logistics information systems upgrade (pp. 26–31)

Program 1.12 Capability Development

• SEA 1000—Future submarines (pp. 32–35, 45)

• Growler (pp. 35–37)

• Original purchase of Collins and resolution of Intellectual Property (IP) rights,

evolved Collins and need to have IP arrangement for ensuring sufficient sovereign rights (pp. 37–44)

• Risk identification in Defence procurement processes (45–47)

Program 1.13 Chief Finance Officer

• Official Development Assistance (ODA) (pp. 47–48, 50–51)

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Outcome 2

• National Action Plan on Women, Peace and Security—Defence's

contribution, particularly in Afghanistan and work of the Civil Military Centre (pp. 48–50)

Defence Materiel Organisation

• Seasprites (pp. 51–53)

• DMO representatives at Avalon Air Show, Paris Air Show (pp. 52–57)

• Staff numbers at DMO (pp. 58–61)

• Light weight torpedos—MU90 (pp. 61–62)

• 360 degree scorecard, small fall in performance of DMO, first and second pass approvals numbers, scheduled project performance (pp. 62–64)

• Projects of concern including multi role tank transport, MU90, Land 40 phase 2 project (pp. 64–73)

Department of Veterans' Affairs

1.13 The committee welcomed Mr Simon Lewis PSM, Acting Secretary, and officers from the Department of Veterans' Affairs (DVA). The Committee took the opportunity to congratulate Mr Lewis on his appointment as acting secretary and acknowledged outgoing Secretary, Mr Ian Campbell PSM as a 'fine public servant and a servant to the veterans' community'.9

Acting Secretary's opening statement

1.14 In his opening statement Mr Lewis acknowledged the service of outgoing secretary Mr Campbell. He stated:

I would, firstly, like to acknowledge the excellent work of the outgoing secretary, Mr Ian Campbell. During his term as secretary over the last five years, Mr Campbell fulfilled his role with professionalism and dedication. Under his leadership the department has been able to position strategically to respond to the many challenges arising from the high level of ADF operational tempo over recent years. He also consolidated the department's approach to supporting the centenary of Anzac in 2015, an issue about which I know he is very passionate. One initiative I know that he is particularly proud of is the establishment of the on-base advisory service or OBAS. Currently on 35 Defence bases, this initiative has helped bring the DVA closer to ADF members and increased their awareness of our services.

Mr Campbell took a particular interest in ensuring that the needs of younger war widows and children were quickly and effectively met by DVA and ensured that DVA adapted and evolved to meet the needs of contemporary clients. I trust that all members of this committee will join me in wishing

9 Proof Committee Hansard, 4 June 2013, pp. 74, 76.

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Mr Campbell a speedy recovery from his recent illness and our best wishes for his retirement.10

1.15 During this opening statement, the Acting Secretary apologised to the committee for an error relating to correspondence to around 1,000 clients affected by the proposed introduction of white cards for Safety Rehabilitation and Compensation

(SRCA) clients with long standing health conditions. The department wrote to the clients advising them of the changes—this correspondence did not acknowledge that the initiative was dependent on legislation currently before the Parliament.11

1.16 Topics examined during the hearing on 4 June 2013 included:

• Rehabilitation mobility support process (pp. 76–78)

• Training for departmental staff with respect to entitlements under the Military

Rehabilitation and Compensation Act 2004 (pp. 78–79)

• Ex-Service organisations (pp. 79–80)

• Home and Community Care (HACC) program (pp. 80–82, 83–84)

• Co-location arrangements (pp. 82–83)

• Budget and funding commitments around mental health (p. 84)

• Campbell review (pp. 84–87)

• Key performance indicators and timeliness of claims (pp. 87–91)

• Ex gratia payments to Australians exposed to British nuclear tests—Maralinga (pp. 91–93)

• Building Excellence in Support and Training (BEST) program and funding (pp. 93–95)

• Grosvenor report on the interaction between the Repatriation Medical Authority and the Specialist Medical Review Council (pp. 95–97)

• Centenary of Anzac commemorations and the Anzac Centenary Advisory

Board (pp. 97–100)

• Local Community Grants Program (p. 101)

• Providence Consulting report (pp. 102–105)

• Centenary of Anzac travelling exhibition (pp. 105–106)

10 Proof Committee Hansard, 4 June 2013, p. 74.

11 Proof Committee Hansard, 4 June 2013, p. 75.

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Australian War Memorial

1.17 The committee welcomed Dr Brendan Nelson AO, Director and officers of the Australian War Memorial.12

1.18 Topics examined during the hearing on 4 June 2013 included:

• Centenary of Anzac travelling exhibition (pp. 106–108, 109)

• Proposed paid parking in the parliamentary triangle and its implication for the

War Memorial (p. 108)

• Last Post ceremony and proposed new initiatives and exhibitions (p. 108)

12 Proof Committee Hansard, 4 June 2013, p. 106.

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Foreign Affairs and Trade portfolio

Department of Foreign Affairs and Trade

1.19 The committee welcomed Mr Peter Varghese AO, Secretary, and officers of the Department of Foreign Affairs and Trade (DFAT).13

1.20 Topics examined during the hearing on 5 June 2013 included:

Portfolio and Budget Overview

• The department's role in monitoring overseas terrorist incidents

(pp. 4–10, 38–45)

• Staff reductions and voluntary redundancies (pp. 10–12)

• DFAT budget (pp. 12–13)

• Decision to postpone the establishment of the embassy in Senegal (pp. 13–14)

• Decision to close Australia's embassy in Hungary (pp. 14–19)

• Overseas travel for Foreign Ministers' spouses (pp. 19–20)

• Selection processes for DFAT's senior executives (p. 21)

• Funding for Australia's membership of the United Nations (UN) Security

Council (pp. 21–22)

• Budget allocation for the Indian Ocean Rim Association for Regional

Cooperation (IOR-ARC) (pp. 22–23)

• Australia in the Asian Century White Paper (pp. 23–24)

• Budget expense measures for combatting people smuggling (pp. 24–27)

• Diplomatic appointments (pp. 27–28)

• Direct Aid Program (pp. 28–30)

• National Action Plan on Women, Peace and Security—DFAT's contribution, particularly in Afghanistan (pp. 30–31)

North Asia

• Australia-Japan free trade agreement negotiations (pp. 31–32)

• Implications of change of leadership in China on Australia-China

relationships (p. 33)

• Territorial claims in the South China Sea (pp. 33–35)

• Human rights dialogue framework (p. 35)

• Annual meetings between Chinese Government and Australian Government

(p. 36)

• Australian citizens detained in China (pp. 37, 45–46)

13 Proof Committee Hansard, 5 June 2013, p. 3.

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• Non-self-governing territories (pp. 46–47)

• Mongolian Government and the Oyu Tolgoi mine (pp. 47–49)

• Proposed North Korean embassy in Australia (pp. 49–50)

South East Asia

• Discussions with Malaysia in relation to people smuggling and human trafficking (p. 50)

• Australia's relationship with Indonesia (pp. 51–53)

• Reports by human rights group Papuans Behind Bars (pp. 53–58)

• Indonesia—Lombok treaty (pp. 59–60)

• Malaysian elections (pp. 61–63)

• Safety of Australian travellers in Bali (pp. 63–64)

• International prisoner transfer agreement with Indonesia (pp. 64–65)

• Process of democratisation in Myanmar and human rights (pp. 66–73)

• The case of two Qantas employees arrested in Vietnam (p. 73)

• Information published on the Foreign Minister's blog (p. 74)

• Australia's relationship with the Philippines (pp. 75–76)

• The disappearance of Lao human rights activist Mr Sombath Somphone (pp. 51, 76–77)

Americas

• Post liaison visit to Australia's New York embassy (p. 77)

• Departmental support for Mr Tim Mathieson's recent visit to the United States (pp. 77–78)

• Diplomatic appointments (pp. 78–79)

• Residential arrangements for the incoming consul-general in New York (pp. 79–81)

• The trial of Private First Class Bradley Manning in the United States (pp. 81–83)

Europe

• Reports of the anti-Semitic movement in Hungary (pp. 83–84)

• British membership of the European Union (pp. 84–85)

• The Australia-United Kingdom ministerial communiqué (p. 85)

• The agreement that has been reached between Serbia and Kosovo (pp. 85–86)

South and West Asia, the Middle East and Africa

• Sri Lanka and human rights (pp. 86, 88)

• Visits to Australia by the Indian Prime Minister (p. 87)

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• Safety of Australian tourists in India (p. 87)

• The Australian High Commission in Colombo and requests for asylum

(pp. 89–90)

• Australia's attendance at Colombo CHOGM (pp. 91–92)

• Australia's four-point plan for security cooperation with Sri Lanka (pp. 92–94)

• The Maldives suspension from the Commonwealth Ministerial Action Group

(pp. 94–95)

• Safety of Australian citizens in Syria (pp. 95–96)

• Reports of the use of chemical weapons in Syria (p. 97)

• Humanitarian assistance for refugees fleeing Syria (pp. 97–98)

• Human rights and Pakistan (pp. 99–100)

• The case of Australians, Mr Matthew Joyce and Mr Marcus Lee, detained in Dubai (pp. 100–102)

• Upcoming elections in Zimbabwe (p. 103)

• Human rights and Iran (p. 104)

• Education issues in Gaza—Hamas (p. 104)

• Mining operations in Rwanda and the Democratic Republic of Congo (pp. 104–106)

• The new High Commission building in Kenya (p. 107)

• Children engaged in conflict in the Central African Republic (pp. 107–108)

Pacific

• Update on the situation in Fiji (pp. 108–109)

• Cooperative fishing issues in the South Pacific (pp. 109–110)

• China's engagement in the Pacific (p. 111)

1.21 The committee continued hearings on areas under outcome 1 on 6 June 2013. Topics examined included:

International organisations, legal and environment

• Legal arrangements in Papua New Guinea (PNG) (pp. 4–5)

• Australia's involvement in the Open Government Partnership (pp. 5–7)

• UN Law of the Sea Convention (pp. 7–8)

• The consideration by PNG to introduce the death penalty (p. 8)

• UN Security Council sanctions committees (pp. 8–10)

• People smuggling (pp. 10–113)

• International Civil Aviation Organisation (pp. 13–14)

• The Bali Process (pp. 14–15)

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• UN and autonomous sanctions (p. 16)

• Intergovernmental Panel on Climate Change—Rio conference

(pp. 17, 19, 32–33)

• UN Commission on the Status of Women meeting in March 2013 (pp. 17–18)

• Indian Ocean Rim Association for Regional Cooperation (pp. 19–20)

• UN Security Council Taskforce (pp. 20–21)

Security, nuclear disarmament and non-proliferation

• Status of negotiations on uranium sales to India (pp. 22–23)

• The Humanitarian Impact of Nuclear Weapons conference (p. 23)

• Australia's policy on the use of nuclear weapon (pp. 23–25)

• Arms Trade Treaty (pp. 26–27)

Public information services and public diplomacy

• Smartraveller website (pp. 27–29)

• Direct Aid Program (pp. 29–31)

Program 1.2—Payments to International Organisations

• Budget for payments to the UN and UN bodies (p. 33)

Program 1.3—Public Information Services and Public Diplomacy

• China Advanced Leadership Program (pp. 33–34)

Outcome 2

Program 2.1—Consular Services

• Travellers emergency loans and medical evacuations (p. 34)

• Consular assistance to Mr Julian Assange (p. 35)

• Increasing numbers of Australians travelling and the pressures on consular

services (pp. 35–36)

Program 2.1—Passport Services

• Replacement passport system (p. 36)

• Closure of the Atlanta office (pp. 36–37)

Outcome 3

Program 3.2—Overseas Property

• Bali Peace Park (pp. 37–38)

• The Ambassador's residence in Rome (p. 39)

• Reviews and security upgrades of overseas posts (p. 39)

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Trade portfolio

DFAT trade programs, Australian Trade Commission, and Export Finance and Insurance Corporation

1.22 The committee welcomed officers of the Australian Trade Commission (Austrade) and Export Finance and Insurance Corporation (EFIC) who appeared with DFAT officers in the trade portfolio.14

1.23 Topics examined during the hearing on 6 June 2013 included:

Bilateral, regional and multilateral trade negotiations

• Australian beef exports to Indonesia (pp. 40–46)

• Free-trade agreement negotiations (p. 46)

• Issues faced by SPC Ardmona (pp. 46–48)

• World Economic Forum in Myanmar (pp. 48–49)

• Status of the Australia-India Comprehensive Economic Cooperation

Agreement (pp. 49–50)

• Free trade agreement with Japan (p. 50)

• Trans-Pacific Partnership Agreement (p. 50)

• Trade negotiations with South Korea (pp. 50–51)

EFIC

• EFIC's environmental and risk assessments on high-risk projects (pp. 51–53)

• EFIC and national interest decisions (pp. 53–55)

Austrade

• Brand Australia (p. 57)

• Asian Century Business Engagement Plan (pp. 57–58)

Australian Agency for International Development

1.24 The committee welcomed officers of the Australian Agency for International Development (AusAID).15

Opening statement

1.25 Mr Peter Baxter, Director General, made an opening statement. Mr Baxter discussed the concerns regarding:

…inaccurate media reporting relating to alleged problems with bullying and harassment within AusAID, the reasons for the increase in AusAID's

14 Proof Committee Hansard, 6 June 2013, p. 40. 15 Proof Committee Hansard, 6 June 2013, p. 58.

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Comcare premiums and the number of executive level staff within AusAID.16

1.26 Mr Baxter also noted the recently released OECD peer review of the Australian aid program, released in May 2013. Mr Baxter stated:

It is the second independent review of our aid program to be published in the last three years, coming after the release of the Independent Review of Aid Effectiveness in April 2011. The peer review is conducted every four years. The OECD commended AusAID's organisational reform efforts, describing the agency as a highly efficient, flexible and innovative organisation. It assessed that Australia is in a very strong position to deliver a growing aid budget effectively and efficiently. It commended Australia's effective approach to development in fragile and conflict-affected states, and it recognised Australia's commitment to transparency and its focus on achieving results.17

1.27 Topics examined during the hearing on 6 June 2013 included:

• Oversight processes and mechanisms (pp. 59–60)

• Bullying issues at AusAID, staff survey results, reporting of bullying and AusAID procedures for responding to allegations of bullying, staffing issues in AusAID (pp. 60–68)

• Staff medically evacuated from an overseas deployment (pp. 68–69)

• Personnel costs for deployments (pp. 69–70)

• Aid to Papuan provinces, including strategic assessment of HIV in the region

(pp. 70–72)

• Aid funding to East Timor (pp. 72–75)

• Papua New Guinea and Australia's aid program, social indicators, water and

sanitation, multi drug resistant tuberculosis, Daru hospital (pp. 75–77)

• Deductible gift recipient (DGR) status (pp. 77–80)

• $375 million redirected from within the aid budget (pp. 80–81, 84–86)

• Mining for Development Initiative (pp. 81–83, 88)

• Research on illegal mining in Bougainville (pp. 86–87)

• Comprehensive Aid Policy Framework (p. 89)

• Non-government organisation accreditation processes (p. 89)

• Development and implementation of a whole-of-government approach (pp. 89–91)

• International Relief and Development (pp. 91–92)

16 Proof Committee Hansard, 6 June 2013, p. 58.

17 Proof Committee Hansard, 6 June 2013, p. 59.

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• Investigations of possible fraud in the scholarships program in Afghanistan

(pp. 93–94)

• Aid to the Caribbean (pp. 94–95)

• Mining for Development Initiative in Myanmar (pp. 95–97)

• Sri Lanka and the Australian Community Rehabilitation program (p. 97)

• Kalimantan Forests and Climate Partnership (pp. 97–98)

• Aid to Cambodia (pp. 99–101)

Acknowledgements 1.28 For their assistance during its hearings, the committee thanks Senator the Hon David Feeney and Senator the Hon Bob Carr. The committee also acknowledges the attendance and cooperation of the many departmental and agency officers and the services of various parliamentary staff involved in the estimates process.

Senator the Hon Ursula Stephens Chair

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Appendix 1

Tabled documents

Budget estimates 2013−2014

Defence portfolio

Monday, 3 June 2012

Department of Defence

• Received from Air Marshall Mark Binskin AO, 'Acting Chief of the Defence Force Opening Statement-Budget Estimates Hearing—3 June 2013'.

• Received from Senator Scott Ludlam 'Rules for US Troops in NT kept secret', Dylan Welch, 11 November 2012.

• Received from Senator the Hon Michael Ronaldson, flow chart relating to

Australian civilian surgical/medical staff at the provincial hospital in Bien Hoa, South Vietnam.

Tuesday, 4 June2012

Department of Veterans' Affairs

• Received from Mr Simon Lewis PSM, Acting Secretary, 'Opening Statement'.

• Received from Mr Simon Lewis PSM, Acting Secretary, 'Veteran Mental

Health Clinical Reference Group—Committee members'.

• Received from Senator Scott Ludlam, two letters to the Right Hon William

Hague MP, First Secretary of State, and Secretary of State for Foreign and Commonwealth Affairs, dated 17 January and 21 February 2013; and one letter from the Right Hon Mark Francois MP, Minister of State for Defence Personnel Welfare and Veterans, dated 11 April 2013.

Foreign Affairs and Trade portfolio

Thursday, 6 June 2012

Department of Foreign Affairs and Trade

• Received from Senator the Hon Bob Carr, Minister for Foreign Affairs, 'Matthew Joyce and Marcus Lee—Case Chronology'.

Australian Agency for International Development (AusAID)

• Received from Mr Peter Baxter, Director General, photographs of the construction of new TB ward at Daru Hospital.

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The Senate

Legal and Constitutional Affairs

Legislation Committee

Budget estimates 2013–14

June 2013

189

© Commonwealth of Australia

ISBN: 978-1-74229-866-5

This document was produced by the Senate Legal and Constitutional Affairs Committee secretariat and printed by the Senate Printing Unit, Department of the Senate, Parliament House, Canberra.

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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

Senators in attendance

Senator Patricia Crossin (Chair), Senator Gary Humphries (Deputy Chair), Senator Sue Boyce, Senator Mark Furner, Senator Louise Pratt, Senator Penny Wright, Senator the Hon Eric Abetz, Senator Catryna Bilyk, Senator Simon Birmingham, Senator Mark Bishop, Senator the Hon George Brandis QC, Senator the Hon Kim Carr, Senator Michaelia Cash, Senator the Hon Richard Colbeck, Senator the Hon John Faulkner, Senator Mitch Fifield, Senator Sarah Hanson-Young, Senator the Hon Bill Heffernan, Senator Scott Ludlam, Senator Helen Kroger, Senator Bridget McKenzie, Senator John Madigan, Senator Gavin Marshall, Senator Stephen Parry, Senator Lee Rhiannon, Senator Rachel Siewert, Senator John Williams, Senator Nick Xenophon

Secretariat

Ms Julie Dennett Committee Secretary

Ms Monika Sheppard Senior Research Officer

Ms Leonie Lam Research Officer

Ms Elise Williamson Administrative Officer

Suite S1.61 Telephone: (02) 6277 3560

Parliament House Fax: (02) 6277 5794

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

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v

TABLE OF CONTENTS

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

Reference of documents ....................................................................................... vii

Estimates hearings ................................................................................................ vii

Ministers and Parliamentary Secretary ................................................................ viii

Questions on notice ............................................................................................. viii

Note on references ............................................................................................... viii

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

IMMIGRATION AND CITIZENSHIP PORTFOLIO ........................................ 1

Migration Review Tribunal and Refugee Review Tribunal ................................... 1

Department of Immigration and Citizenship .......................................................... 1

CHAPTER 2 ........................................................................................................ 9

ATTORNEY-GENERAL'S PORTFOLIO ............................................................ 9

Australian Customs and Border Protection Service ......................................... 9

Family Court of Australia.................................................................................... 9

Federal Court of Australia ................................................................................ 10

Australian Commission for Law Enforcement Integrity ................................ 11

Australian Crime Commission .......................................................................... 11

Australian Federal Police ................................................................................... 12

Attorney-General's Department ....................................................................... 13

Other matters of interest .................................................................................... 14

APPENDIX 1 ..................................................................................................... 17

DEPARTMENTS AND AGENCIES FOR WHICH THE COMMITTEE HAS OVERSIGHT .......................................................................................................... 17

Attorney-General's Portfolio ................................................................................ 17

Immigration and Citizenship Portfolio ................................................................. 18

APPENDIX 2 ..................................................................................................... 19

INDEX OF PROOF HANSARDS ......................................................................... 19

Immigration and Citizenship Portfolio ................................................................. 19

Attorney-General's Portfolio ................................................................................ 20

193

APPENDIX 3 ..................................................................................................... 21

TABLED DOCUMENTS ....................................................................................... 21

Immigration and Citizenship Portfolio, 27 and 28 May 2013 .............................. 21

Attorney-General's Portfolio, 29 and 30 May 2013 ............................................. 22

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PREFACE

On 14 May 2013, the Senate referred to the Senate Legal and Constitutional Affairs Legislation Committee (committee) for examination the estimates of proposed expenditure for the financial year 2013-14. The committee is responsible for the examination of the Attorney-General's Portfolio and the Immigration and Citizenship Portfolio. The portfolio budget statements for 2013-14 were tabled on 14 May 2013.1

Reference of documents The Senate referred to the committee, for examination and report, the following documents:

• particulars of proposed expenditure in respect of the year ending on

30 June 2014 [Appropriation Bill (No. 1) 2013-2014]; and

• particulars of certain proposed expenditure in respect of the year ending on

30 June 2014 [Appropriation Bill (No. 2) 2013-2014].

The committee was required to report on its consideration of the budget estimates on or before 25 June 2013.

Estimates hearings The committee met in public session on 27, 28, 29 and 30 May 2013.

Over the course of the four days of hearings, totalling over 40 hours, the committee took evidence from the following departments and agencies:

Immigration and Citizenship Portfolio

• Department of Immigration and Citizenship (including the Office of the

Migration Agents Registration Authority)

• Migration Review Tribunal and Refugee Review Tribunal

Attorney-General's Portfolio

• Attorney-General's Department

• Australian Commission for Law Enforcement Integrity

• Australian Crime Commission

• Australian Customs and Border Protection Service

• Australian Federal Police

• Australian Government Solicitor

• Australian Human Rights Commission

• Australian Law Reform Commission

1 Senate, Journals of the Senate, No. 144-14 May 2013, p. 3915.

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• Australian Security Intelligence Organisation

• Classification Board

• CrimTrac Agency

• Family Court of Australia

• Federal Court of Australia

• Insolvency and Trustee Service Australia

• Office of the Australian Information Commissioner

• Office of the Director of Public Prosecutions

Copies of the transcripts of Hansard are available on the committee's website at: www.aph.gov.au/senate_legalcon.

An index of the Hansard for each portfolio appears at Appendix 2.

Ministers and Parliamentary Secretary On 27 and 28 May 2013, the committee heard evidence from Senator the Hon. Kate Lundy, Minister for Sport, Minister for Multicultural Affairs and Minister Assisting for Industry and Innovation; and Senator the Hon. Matt Thistlethwaite, Parliamentary Secretary for Pacific Island Affairs and Parliamentary Secretary for Multicultural Affairs, representing the Minister for Immigration and Citizenship.

On 29 and 30 May 2013, the committee heard evidence from Senator the Hon. Joseph Ludwig, Minister for Agriculture, Fisheries and Forestry, and Minister Assisting the Attorney-General on Queensland Floods Recovery, representing the Attorney-General and the Minister for Justice and Home Affairs.

Officers from both departments and associated agencies also appeared. The committee thanks the Ministers, Parliamentary Secretary and officers for their assistance.

Questions on notice The committee determined that the due date for submitting responses to questions on notice from the Budget Estimates round is 12 July 2013.

Further written explanations, and answers to questions on notice, will be tabled as soon as possible after they are received, and are available on the committee's website.

Note on references References to the committee Hansard are to the proof Hansard. Page numbers may vary between the proof and the official Hansard transcript.

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CHAPTER 1

IMMIGRATION AND CITIZENSHIP PORTFOLIO 1.1 This chapter summarises some of the matters raised during the committee's consideration of the budget estimates for the Immigration and Citizenship Portfolio for the 2013-14 financial year.

Migration Review Tribunal and Refugee Review Tribunal 1.2 The Principal Member of the Migration Review Tribunal and Refugee Review Tribunal (MRT-RRT) updated the committee on significant developments within the agencies since February 2013. The Principal Member described current workload statistics, and the development and implementation of certain strategies to manage the increased workload.1

1.3 Senators asked the MRT-RRT about the incidence of cases involving Irregular Maritime Arrivals (IMAs) in the financial year to 30 April 2013. The committee heard that the MRT-RRT has received 1,510 cases2 but that the tribunals have not dealt with any 'arrivals post 13 August 2012'.3

1.4 In relation to the funding of cases for post 13 August 2012 IMA arrivals, the MRT-RRT explained that its budget for 2013-14 has been 'rebased', to increase funding from a base of 9,065 cases to 18,000 cases (totalling $65.7 million), with a marginal cost of $2,091 for any extra cases under 2,000 and $2,972 per case above that number.4

Department of Immigration and Citizenship 1.5 The Secretary of the Department of Immigration and Citizenship (DIAC), Mr Martin Bowles PSM, provided the committee with an update on significant developments within the portfolio since his appearance before the committee at Additional Estimates 2013. The Secretary canvassed, for example, statistical information on the migration and humanitarian programs, current activities to enhance the provision of services and to strengthen program integrity, implementation of the recommendations of the Expert Panel on Asylum Seekers, and management of the immigration detention network.5

1 Budget Estimates Hansard, 27 May 2013, p. 4.

2 Budget Estimates Hansard, 27 May 2013, p. 5.

3 Budget Estimates Hansard, 27 May 2013, p. 9.

4 Budget Estimates Hansard, 27 May 2013, p. 11.

5 Budget Estimates Hansard, 27 May 2013, pp 17-20.

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Irregular maritime arrivals and budget implications

1.6 The committee questioned DIAC on the number of Irregular Maritime Arrivals (IMAs) provided for in the 2013-14 Budget. Specifically, the committee sought an explanation as to how the budgeted item takes into account IMAs who arrived in Australia after 13 August 2012 and who are therefore subject to the 'no advantage principle' which commenced on that date.

1.7 The Secretary acknowledged that the 2013-14 Budget allows for 13,200 IMAs, notwithstanding that 22,265 IMAs have arrived in the financial year to 24 May 2013 and for whom processing has not yet commenced.6 The Secretary explained that the projected figure of 13,200 arrivals was formulated in conjunction with the Australian Customs and Border Protection Service, taking into account a significant shift in the Sri Lankan caseload in late 2012:

Mr Bowles:...In relation to how that then translates into the budget, we are working with the Department of Finance and Deregulation at the moment around the funding model that we will go forward with. That will take into account the various nuances that I have talked about [regarding] how we manage a particular network. We are trying to drive efficiencies in the way that we manage the network….[T]he numbers are increasing and therefore the total dollars are increasing. But it is the way that we manage the network that will allow us to keep those costs to [as] small an amount as possible, given the arrival numbers.7

1.8 With respect to the 22,265 IMAs who have already arrived in Australia, the Secretary confirmed that the process of refugee status determination will commence 'shortly', possibly before the end of the current financial year but, if not, definitely in the financial year commencing 1 July 2013.8 The Secretary advised that the processing and associated costs have been addressed in Outcome 4 of the 2013-14 Budget; however, since DIAC uses a 'demand model', it is not possible to specify a funding year.9

Offshore processing centres

1.9 The committee sought details of the budgeted cost of transferring IMAs to Manus Island, Papua New Guinea and Nauru over the 2013-14 financial year. The committee heard that, in the financial year to 30 April 2013, $7.4 million has been spent in this regard.10 For 2013-14, DIAC explained that the amount likely to be expended is covered in the 'larger pool' in the forward estimates and has not been itemised:

6 Budget Estimates Hansard, 27 May 2013, pp 9 and 29.

7 Budget Estimates Hansard, 27 May 2013, p. 30.

8 Budget Estimates Hansard, 27 May 2013, pp 9 and 40.

9 Budget Estimates Hansard, 27 May 2013, p. 39.

10 Mr Ken Douglas, Department of Immigration and Citizenship (DIAC), Budget Estimates Hansard, 28 May 2013, p. 30.

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Mr Douglas:…[T]he expenditure is a function of the number of people who will be located and the rate at which the infrastructure is finished and therefore the rate at which people might come into the centre or leave the centre…[W]e have estimated the forward value of the contracts over the life

of those contracts. To estimate the value into the future years beyond what we have in those contracts would be subject to a procurement process, which is yet to be undertaken.11

1.10 DIAC informed the committee that Manus Island and Nauru are expected to operate at capacity in the 2013-14 financial year, with the construction of facilities on Manus Island commencing in July and for which a limited tender process will be

utilised at an approximate total cost of $171.7 million. Completion is expected at the end of January 2014, 'depending on climate and the degree of construction difficulty'.12

Family migration program

1.11 The committee examined the increase in the family stream of the migration program for 2013-14. DIAC confirmed that there will be a 'small adjustment [of 700 places]…to meet the demand in the family program[,] particularly in the partner category that is demand driven'.13 The committee understands that this will increase the number of placements from 60,185 (2012-13) to 60,885 (2013-14) and will correspondingly decrease the number of placements in the General Skilled Migration program (also known as the Professional and Other Skilled Migrants program), which caters to skilled migrants who are not sponsored by an employer.14

Enterprise Migration Agreements, Regional Migration Agreements and Significant Investor Visas

1.12 DIAC updated the committee in relation to Enterprise Migration Agreements (EMAs), Regional Migration Agreements (RMAs) and significant investor visas. The committee was advised that:

• thirty-three EMA submissions have been received, with one EMA approved in-principle subject to the negotiation of a deed of agreement (for the Roy Hill Project) and three submissions currently being assessed;15

• one RMA application has been received from the Northern Territory Government, which is currently under assessment;16 and

• in relation to the significant investor visa category, 435 expressions of interest have been lodged for subclass 188 and subclass 888 visas of which

11 Budget Estimates Hansard, 28 May 2013, p. 29.

12 Mr Ken Douglas, DIAC, Budget Estimates Hansard, 28 May 2013, p. 30.

13 Mr Kruno Kukoc, DIAC, Budget Estimates Hansard, 27 May 2013, p. 61.

14 Budget Estimates Hansard, 27 May 2013, p. 61.

15 Mr Kruno Kukoc, DIAC, Budget Estimates Hansard, 27 May 2013, p. 65.

16 Mr Kruno Kukoc, DIAC, Budget Estimates Hansard, 27 May 2013, p. 66.

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279 applicants were invited to apply.17 An applicant must hold a 188 provisional visa for four years before becoming eligible to apply for a 888 visa: as such there have as yet been no applications for the subclass 888 visa, which was introduced in November 2012.18

1.13 The department was asked to explain how it determines whether a significant investor visa applicant has the capacity to invest $5 million minimum into particular investments, which is a requirement of the new visa. The Secretary advised that there are a range of checks regarding the legitimacy of the funds, including with AUSTRAC.19 Following in-principle approval of the application, the applicant is invited to lodge funds into an approved investment before the application can be finalised.20

Security arrangements within the immigration detention network

1.14 The committee asked DIAC about security arrangements within the immigration detention network. Specifically, senators sought further details in relation to the management of persons who might pose a risk to the Australian community.

1.15 While a number of cases and circumstances were discussed, the Secretary assured the committee that, upon entry to Australia, DIAC determines a person's identity or claimed identity, including through reference to the Movement Alert List.21 Where a confirmed identity raises concerns, the person would not be released into the community or would be re-detained.22

1.16 The Secretary explained that, if DIAC was not able to confirm a person's identity, that person might be released on a bridging visa or into community detention. Equally, if DIAC has concerns regarding a person's identity, 'we would definitely not release them'.23

1.17 Throughout this line of questioning, DIAC emphasised that it manages people in 'appropriate forms of detention',24 with the service provider, Serco, placing persons within detention centres following the conduct of a risk assessment.25

Enhanced screening process

1.18 The committee requested details of the enhanced screening process, which commenced on 27 October 2012 in relation to the Sri Lankan cohort of IMAs.

17 Mr Martin Bowles PSM, DIAC, Budget Estimates Hansard, 27 May 2013, p. 67.

18 Mr Kruno Kukoc, DIAC, Budget Estimates Hansard, 27 May 2013, p. 67.

19 Budget Estimates Hansard, 27 May 2013, p. 67.

20 Mr Jim Williams, DIAC, Budget Estimates Hansard, 27 May 2013, p. 68.

21 Budget Estimates Hansard, 27 May 2013, p. 98.

22 Budget Estimates Hansard, 27 May 2013, p. 96.

23 Budget Estimates Hansard, 27 May 2013, p. 96.

24 Budget Estimates Hansard, 27 May 2013, p. 100.

25 Budget Estimates Hansard, 27 May 2013, p. 96.

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The committee heard that, under the new process, 2,596 interviews have taken place, with 965 people having been removed from Australia as a consequence.26 DIAC advised that people who are awaiting removal from Australia can request and be provided with access to legal assistance.27 To date, three persons have sought such assistance and have been taken off the removals list.28

Official Development Assistance

1.19 The committee examined a budgeted item of $375 million, which has been allocated as official development assistance (ODA) within DIAC's budget. Specifically, DIAC was asked how these funds are expended and what oversight is in place to ensure that any such expenditure complies with ODA guidelines. The Secretary responded:

The money…identified as ODA within the asylum seekers area…relates to people who are in the community either on a bridging visa or under a residence determination…It relates to the first 12 month[s] that they are in Australia. If they spend time in detention, that time in detention does not go to the ODA component. If they spend six months in detention and six months in the community, the six months in the community would count within the ODA. This is a rigorous process that sits under the OECD Development Assistance Committee's reporting directives…[The money] is for sustenance, care, shelter, basic English language training and things like that.29

1.20 The Secretary explained that ODA funds are administered through DIAC's normal payment schemes (Community Assistance Scheme and Asylum Seeker Assistance Scheme). Accordingly, DIAC knows how long a person has been in the system and whether the person has been in detention or in the community. This enables DIAC to 'track' compliance with ODA guidelines. The Secretary observed that 'DIAC is responsible for ensuring efficient and effective expenditure and appropriate reporting of its ODA funding [to AusAID]'.30

Other matters of interest

1.21 The committee also questioned DIAC in relation to a range of other matters, including:

• further information on DIAC's initiatives to improve its internal

communications throughout Australia and overseas following a capability review;31

26 Budget Estimates Hansard, 28 May 2013, p. 37.

27 Budget Estimates Hansard, 28 May 2013, p. 43.

28 Budget Estimates Hansard, 28 May 2013, p. 45.

29 Budget Estimates Hansard, 28 May 2013, pp 19-21.

30 Budget Estimates Hansard, 28 May 2013, p. 21.

31 Budget Estimates Hansard, 27 May 2013, pp 42-43.

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• arrangements with the Fair Work Commission, to enable Fair Work inspectors

to investigate non-compliance with certain requirements of the 457 visa program;32

• reasons for the delayed processing of claims for refugee status on Nauru and

Manus Island;33

• introduction of a new polymer card as a form of identification for

humanitarian visa holders and IMAs;34

• repatriation arrangements involving transit through third countries; 35 and

• reform of employer sanctions for businesses which employ unlawful

non-citizens.36

Answers to questions on notice

1.22 The committee again notes the delay in the provision of answers to questions on notice for the Immigration and Citizenship Portfolio for

Additional Estimates 2012-13. The committee set 2 April 2013 as the return date for answers but did not receive any responses by that date. Instead, a total of 393 answers to questions on notice were received on the Saturday before the commencement of Budget Estimates–less than two days prior to DIAC's appearance before the committee.37 Of the responses received, 333 of those were in response to a total of 509 questions from the Additional Estimates round (in February 2013) and 160 responses received for the Supplementary Estimates hearings (in October 2012). At the date of this report's tabling, there are 176 answers to questions on notice outstanding for Additional Estimates 2012-13 and 136 answers to questions on notice outstanding from 647 questions for Supplementary Estimates 2012-13.

1.23 As previously noted by the committee, no answers to questions on notice have been provided by the due date over several successive estimates rounds for the Immigration and Citizenship Portfolio.38 The late provision of answers does not allow members of the committee reasonable time to consider those answers prior to the hearings, and impedes the role of the committee in examining proposed expenditure by Commonwealth departments and agencies.

32 Budget Estimates Hansard, 27 May 2013, pp 54-57, 59-60, 62-63 and 72.

33 Budget Estimates Hansard, 27 May 2013, pp 73-74.

34 Budget Estimates Hansard, 27 May 2013, pp 107-109.

35 Budget Estimates Hansard, 28 May 2013, pp 23-25.

36 Budget Estimates Hansard, 28 May 2013, pp 26-28.

37 Budget Estimates Hansard, 27 May 2013, p. 40.

38 Senate Legal and Constitutional Affairs Legislation Committee, Budget estimates 2012-13, June 2012, p. 7; Senate Legal and Constitutional Affairs Legislation Committee, Additional estimates 2012-13, March 2013, p. 5. The one exception was the Additional Estimates 2011-12 round, where the committee noted a slight improvement in the provision of answers to questions on notice.

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1.24 The committee questioned DIAC about its process of answering questions on notice and key performance indicators (KPIs) related to that process.39 The Secretary acknowledged that DIAC is not presently meeting 'a lot of' the KPIs in relation to the provision of answers to questions on notice and advised that a new process for answering questions on notice has been instituted, which involves a restructure of the ministerial and executive support areas. The Secretary indicated his expectation that

the new process would be effective as from this estimates round.40

1.25 The committee will continue to closely monitor DIAC's performance in the provision of answers to questions on notice, particularly in light of the new process advised by the Secretary. It is simply not acceptable for answers to be provided weeks after the due date set by the committee, and for answers to be provided in huge numbers within hours of the commencement of estimates hearings.

39 Budget Estimates Hansard, 27 May 2013, pp 40-41.

40 Budget Estimates Hansard, 27 May 2013, p. 40.

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CHAPTER 2

ATTORNEY-GENERAL'S PORTFOLIO 2.1 This chapter summarises some of the matters raised during the committee's consideration of the budget estimates for the Attorney-General's Portfolio for the 2013-14 financial year.

Australian Customs and Border Protection Service 2.2 The Australian Customs and Border Protection Service (Customs) updated the committee on reform within the agency, as announced by the government in December 2012.1 One of the reforms referred to by the recently appointed Chief Executive Officer, Mr Michael Pezzullo, in his opening statement was Customs' new drug and alcohol testing program, which commenced on 13 March 2013. The committee heard that 551 officers have been tested under the program, with no breaches of the alcohol-free policy detected and one confirmed positive result for a cannabis metabolite.2

2.3 The Chief Executive Officer indicated that, at the current rate, Customs expects to 'cycle through' its 5,600 strong workforce every 24-36 months. However, testing is in a pilot phase (concluding at the end of May or June 2013), after which the results will be reviewed to determine how often employees need to be tested in order to obtain the desired deterrent and integrity intelligence effect.3

Family Court of Australia 2.4 The committee examined the budgetary outlook for the Family Court of Australia (Family Court), where Table 3.2.1 of the Portfolio Budget Statements shows deficits for 2012-13 ($8.4 million), 2013-14 ($8.5 million) and nearly $9 million in each of the out years. Specifically, the committee asked for an explanation of the claim that the court will achieve a balanced budget in the current and upcoming financial years.4 The Executive Director of Corporate responded:

Mr Harriott:…[U]nder Operation Sunlight the funding in our appropriations for depreciation was removed and we get it separately as an equity injection through our balance sheet. So, in the absence of any other changes, the first thing that would happen is that you would make a technical loss in each of those financial years because of the impact of the depreciation. If you look at the table further down, it talks about the impact of net cash appropriation arrangements. Essentially, in terms of our

performance, in terms of a true underlying loss or not, you would add back

1 Budget Estimates Hansard, 29 May 2013, pp 9-12.

2 Budget Estimates Hansard, 29 May 2013, pp 14 and 16.

3 Budget Estimates Hansard, 29 May 2013, p. 14.

4 Family Court of Australia and Federal Magistrates Court of Australia, 2012 – the Year in Review: Chief Executive Officer's Report, October 2012, p. v.

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depreciation. If you look at the 2012-13 figure, which is an $8,424,000 loss, you would add back on the depreciation expense. If you look under 'Expenses' up at the top, under 'Depreciation/amortisation', if you add back the $8,424,000 you end up with zero; essentially, you break even. We were representing it as required, but it is a technical loss…So that is the change that came about through Operation Sunlight. Essentially, but for the depreciation impact, we are budgeting to break even over the forward years.5

2.5 The Family Court conceded that the financial statements that appear in the annual report are more comprehensive than the budget documents;6 however, Mr Harriott, advised the committee 'I do not get a sense, over the time I have been involved, that the notes we have in there now are any less or any more than we have had in the past'.7

Federal Court of Australia 2.6 The committee questioned the Federal Court of Australia (Federal Court) about the budget provision for the appointment of three additional judges in Melbourne, Sydney and Brisbane. The Federal Court clarified that it had not specifically requested these appointments and suggested the government had made its decisions based on numerous expressions of concern made by the Federal Court in relation to the increasing workload in those cities.8

2.7 The committee also asked the Federal Court about a forecasted operating surplus in the 2012-13 Budget, given that that there is a predicted deficit in the forward estimates, including 2012-13. A question was put in relation to how it is possible to have an operating surplus and a significant deficit of $3.2 million in the same year. The Chief Finance Officer, Mr Bowen, provided the committee with an accounting explanation. He advised the committee that, due to a change in the accounting policies two years ago when depreciation funding was removed from all of the entities, the Federal Court will always have a deficit as a result of depreciation that has to be charged against the Federal Court's financial statements. This deficit is then rebalanced by an increase in the Federal Court's equity increase from the department's annual capital budget.9

2.8 Mr Bowen acknowledged:

[The information in the Portfolio Budget Statements] probably should have had a caveat that this is the figure before taking into account depreciation.10

5 Budget Estimates Hansard, 29 May 2013, p. 67.

6 Budget Estimates Hansard, 29 May 2013, pp 67-68.

7 Budget Estimates Hansard, 29 May 2013, p. 68.

8 Budget Estimates Hansard, 29 May 2013, pp 58-59.

9 Budget Estimates Hansard, 29 May 2013, p. 60.

10 Budget Estimates Hansard, 29 May 2013, p. 60.

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Australian Commission for Law Enforcement Integrity 2.9 The committee questioned the Australian Commission for Law Enforcement Integrity (ACLEI) about its budget for 2013-14, staffing levels and the Integrity Commissioner's role in matters involving alleged corruption.

2.10 The Integrity Commissioner advised that there will be an increase of $0.725 million in ACLEI's 2013-14 budget, but funding for the surveillance capability enhancement project will cease on 31 December 2013.11 This pilot project is currently funded from the proceeds of crime and, in the view of the Integrity Commissioner, 'has proven its worth, particularly in the context of recent investigations conducted jointly with the [Australian Federal Police and Customs]. It has helped the investigation to be efficient and it has produced strong criminal briefs'.12 A review of the project's effectiveness is underway and the committee heard that it is likely that the project will continue.13

2.11 The Integrity Commissioner explained that ACLEI accesses the project's surveillance capability by arrangement with the Australian Crime Commission (ACC), which manages the surveillance team. ACLEI has first call on this capability and utilises it in cases where physical surveillance is required in an investigation.14 If funding for the project were discontinued, the committee heard that ACLEI would not be able to access surveillance capability for its investigations.15

Australian Crime Commission 2.12 The committee asked the Australian Crime Commission (ACC) about the impact of its reduced budget, from $104.867 million in 2012-13 to $101.787 million in 2013-14, on work projects and staffing levels. The Chief Executive Officer, Mr John Lawler AM APM, advised that the ACC's response has been to reduce its supply costs in order to maintain staff, and to develop efficiencies to manage the budget.16

2.13 The committee also questioned officers about the Illicit drug data report 2011-12, which was released on 7 February 2013. The Chief Executive Officer confirmed that there have been a record number of seizures (at 23 tonnes), but stated that it is difficult to attribute supply to increased street quantity.17 Based on figures provided by the World Bank and the United Nations Office on Drugs and Crime, the Chief Executive Officer estimated the conservative worth of the illicit drug market in

11 Budget Estimates Hansard, 30 May 2013, p. 7.

12 Budget Estimates Hansard, 30 May 2013, p. 8.

13 Budget Estimates Hansard, 30 May 2013, p. 8.

14 Budget Estimates Hansard, 30 May 2013, p. 8.

15 Budget Estimates Hansard, 30 May 2013, p. 8.

16 Budget Estimates Hansard, 30 May 2013, p. 15.

17 Budget Estimates Hansard, 30 May 2013, p. 17.

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Australia at about $6 billion (or two per cent of Australia's $1.3 trillion gross domestic product).18

Australian Federal Police 2.14 The committee questioned the Australian Federal Police (AFP) about its use of section 313 of the Telecommunications Act 1997 (Telecommunications Act). The AFP acknowledged that the provision was previously used to block malicious software emanating from a particular server. However, section 313 of the Telecommunications Act is now used for a broader purpose:

Mr Phelan: Section 313 is not limited to blocking websites. It is a requirement that content service providers, ISPs or telecommunications carriers do everything in their power to assist law enforcement and stop offence[s] against the criminal law. It is not only about blocking websites. The Australian Federal Police do use that section for other requirements that we do have that are not related at all to blocking websites—that, as a matter of fact have nothing to do with websites. They are about carriers assisting the AFP in lawful duties under warrant et cetera.19

2.15 The committee heard that the AFP revised its approach upon discovering that it is much more useful, and far more valuable, to work with the host companies offshore and block material at its source, rather than attempt to manage the problem from within Australia.20

2.16 In a similar vein, the committee pursued a line of questioning in relation to the AFP's access of non-content data under sections 178-180 of the Telecommunications (Interception and Access) Act 1979. The AFP Commissioner confirmed that, in the last two financial years, over 93,000 requests were made for such access: 50,841 in 2010-11 and 43,362 in 2011-12.21 The committee heard that these requests did not include access to content on overseas servers for which mutual assistance requests are normally required.22

2.17 The committee also questioned AFP officers extensively on Interpol red notices and their application in relation to the assessment of particular individuals, including an IMA individual currently in detention who has been convicted of serious crimes 'in absentia' by a military tribunal in Egypt.23

2.18 The committee was informed that all law enforcement agencies have access to Interpol information which is normally facilitated through the AFP. Mr Colvin emphasised that a red notice is not an arrest warrant and has no legal basis in Australia:

18 Budget Estimates Hansard, 30 May 2013, p. 17.

19 Budget Estimates Hansard, 30 May 2013, p. 30.

20 Budget Estimates Hansard, 30 May 2013, p. 31. 21 Budget Estimates Hansard, 30 May 2013, p. 25.

22 Budget Estimates Hansard, 30 May 2013, p. 26.

23 Budget Estimates Hansard, 30 May 2013, p. 58.

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[It] is a flag so [the AFP] can go back to the country that has asked Interpol to create this red notice if [the AFP] need[s] to establish certain things which include [the requesting country's] preparedness to seek extradition and [that country's] ability to meet the Australian [extradition] threshold… [The extradition process] is a process that is managed by the Attorney-General's Department.24

Attorney-General's Department

Emergency Management Australia

2.19 The committee questioned the Attorney-General's Department (AGD) on the work undertaken in relation to the $12 million committed to the National Risk Information Project, which arose from the Natural Disaster Insurance Review. The committee sought information about the ongoing mapping of flood-prone areas and how much information would be collected and made accessible.25

2.20 The Secretary, Mr Roger Wilkins AO, advised that although there is reasonable knowledge of past and current flood-prone areas, the issue in relation to the project's difficulty, is more related to 'the quality of the data than the extent of the data', and the use of different methodologies in different areas.26 The department's contribution to the project is to develop common guidelines for a framework that will ensure 'existing data [is made] more easily available and accessible through a single web portal' and 'work with jurisdictions to improve standards'.27

2.21 In relation to a question about how much of the $12 million funding has already been spent, a departmental officer advised that Geoscience Australia, the agency building the portal, manages all of the funding allocated to the project.28

National Plan to Reduce Violence Against Women and their Children

2.22 The committee requested an update on how the National Plan to Reduce Violence Against Women and their Children has progressed via the Standing Council on Law and Justice since the last estimates hearings.

2.23 The committee heard that of the 186 recommendations in the Australian Law Reform Commission's Family violence–a national legal response report, the department is 'halfway through' those components where it has responsibility to contribute to a national response, via the Standing Council on Law and Justice, and where the department is responsible for a Commonwealth-specific response.29 The 24 recommendations that the Commonwealth and the states and territories have jointly

24 Budget Estimates Hansard, 30 May 2013, p. 57.

25 Budget Estimates Hansard, 29 May 2013, pp 79 and 80.

26 Budget Estimates Hansard, 29 May 2013, p. 80.

27 Budget Estimates Hansard, 29 May 2013, p. 80.

28 Budget Estimates Hansard, 29 May 2013, p. 81.

29 Budget Estimates Hansard, 29 May 2013, p. 93.

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responded to are publicly available on the Standing Council on Law and Justice's website.30

2.24 The recommendations that have already been progressed by the Commonwealth, and are publicly available, include: changes to the Family Law Act 1975 in relation to family violence and definitions of family violence; a greater focus on training packages around family violence, which resulted in the release of the AVERT Family Violence training package to assist professionals to better understand the subject matter; and preparation of the DOORS (Detection Of Overall Risk Screen) package, which assists lawyers in their interactions with clients to identify issues of family violence.31

Federal judicial appointments

2.25 The committee pursued an extensive line of questioning in relation to the advertisement and appointment of three new Federal Court judges in Melbourne, Sydney and Brisbane. The AGD explained that an existing process to fill vacancies in

Melbourne and Sydney was used to shortlist applicants for the new positions in those cities,32 with the Brisbane appointment advertised on 10 May 2013.33 The AGD informed the committee that the Attorney-General's office had requested that expressions of interest be advertised on 10 May 2013. The positions were advertised prior to the announcement of the vacancies in the Budget on 14 May 2013, because 'the Treasurer had in a sense given his permission for a measure that was to be announced in the budget to be announced effectively before the budget'.34

Other matters of interest 2.26 The committee questioned the department and its agencies about a range of other matters, including:

• the arrival of 66 Sri Lankan asylum seekers at Geraldton, Western Australia on 9 April 2013;35

• the amount, and application, of revenue to be collected by federal courts in 2013-14;36

• the current status of the Open Government Partnership Agreement; 37

• an update on the ratification of the Optional Protocol to the Convention against Torture;38

30 Budget Estimates Hansard, 29 May 2013, p. 92.

31 Budget Estimates Hansard, 29 May 2013, p. 93.

32 Budget Estimates Hansard, 29 May 2013, pp 108 and 111.

33 Budget Estimates Hansard, 29 May 2013, p. 113.

34 Budget Estimates Hansard, 29 May 2013, p. 114.

35 Budget Estimates Hansard, 29 May 2013, pp 18-20.

36 Budget Estimates Hansard, 29 May 2013, pp 61-65 and 68-70.

37 Budget Estimates Hansard, 29 May 2013, pp 75-77.

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• funding arrangements in relation to support provided by the AFP to the

Department of Immigration and Citizenship;39 and

• the Australian Security and Intelligence Organisation's new security assessment process for Irregular Maritime Arrivals.40

Answers to questions on notice

2.27 The committee commented on the late provision of the CrimTrac Agency's (CrimTrac) answers to questions on notice for Additional Estimates 2012-13. The committee had set 2 April 2013 as the return date for answers but did not receive CrimTrac's responses until approximately three hours prior to their appearance before the committee.41

2.28 The committee reiterated its view that it is not acceptable for responses to be provided weeks after the due date. The late provision of answers does not allow committee members sufficient time to consider them before the hearings, and impedes the role of the committee in examining proposed expenditure by Commonwealth departments and agencies.

Senator Trish Crossin Chair

38 Budget Estimates Hansard, 29 May 2013, pp 97-99 and 103-105.

39 Budget Estimates Hansard, 30 May 2013, p. 55.

40 Budget Estimates Hansard, 30 May 2013, p. 67.

41 Estimates Hansard, 30 May 2013, p. 80.

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APPENDIX 1

DEPARTMENTS AND AGENCIES FOR WHICH THE COMMITTEE HAS OVERSIGHT

Attorney-General's Portfolio • Attorney General's Department;

• Administrative Appeals Tribunal;

• Australian Federal Police;

• Australian Customs and Border Protection Service;

• Australian Commission for Law Enforcement Integrity;

• Australian Crime Commission;

• Australian Government Solicitor;

• Australian Human Rights Commission;

• Australian Institute of Criminology;

• Australian Law Reform Commission;

• Australian Security Intelligence Organisation;

• Australian Transaction Reports and Analysis Centre;

• Classification Board and Classification Review Board;

• CrimTrac Agency;

• Family Court of Australia;

• Family Law Council;

• Federal Court of Australia;

• Federal Circuit Court of Australia;

• High Court of Australia;

• Insolvency and Trustee Service Australia;

• National Native Title Tribunal;

• Office of the Australian Information Commissioner;

• Office of the Commonwealth Director of Public Prosecutions; and

• Office of Parliamentary Counsel.

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Immigration and Citizenship Portfolio • Department of Immigration and Citizenship (including the Office of the Migration Agents Registration Authority); and

• Migration Review Tribunal and Refugee Review Tribunal.

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APPENDIX 2

INDEX OF PROOF HANSARDS

Immigration and Citizenship Portfolio

27 May 2013 Pages

Migration Review Tribunal – Refugee Review Tribunal 3-15

Office of the Migration Agents Registration Authority (sub-program 1.1.3) 15-17

Department of Immigration and Citizenship

Cross portfolio/corporate/general 17-47

Outcome 1 47-72

Outcome 2 72-90

Outcome 3 90-114

28 May 2013

Department of Immigration and Citizenship (in continuation)

Outcome 4 3-118

Outcome 5 118-124

Outcome 6 124-124

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Attorney-General's Portfolio

29 May 2013 Pages

Australian Customs and Border Protection Service 7-37

Australian Human Rights Commission 37-52

Australian Law Reform Commission 52-57

Federal Court of Australia 57-65

Family Court of Australia 65-72

Classification Board 72-75

Office of Australian Information Commissioner 75-78

Attorney-General's Department 78-118

30 May 2013

Australian Commission for Law Enforcement Integrity 7-13

Australian Crime Commission 13-21

Australian Federal Police 21-62

Australian Government Solicitor 62-63

Australian Security Intelligence Organisation 64-76

Insolvency and Trustee Service Australia 76-77

Office of the Commonwealth Director of Public Prosecutions 77-80

CrimTrac Agency 80-86

Attorney-General's Department (in continuation) 86-95

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APPENDIX 3

TABLED DOCUMENTS

Immigration and Citizenship Portfolio, 27 and 28 May 2013

No. Date Tabled by: Topic

1 27 May 2013 Ms Kay Ransome,

Principal Member, Migration Review Tribunal – Refugee Review Tribunal

Opening statement

2 27 May 2013 Mr Stephen Wood,

Chief Executive Officer, Office of the Migration Agents Registration Authority

Opening statement

3 27 May 2013 Mr Martin Bowles PSM, Secretary, Department of Immigration and Citizenship

Opening statement

4 27 May 2013 Mr Kruno Kukoc,

First Assistant Secretary, Department of Immigration and Citizenship

Subclass 457 State/Territory summary report

5 28 May 2013 Dr Wendy Southern PSM, Deputy Secretary, Department of Immigration and Citizenship

Interview Preamble for Offshore Entry Persons (OEPs) and non-OEPs

6 28 May 2013 Mr Christopher Callanan, First Assistant Secretary, Department of Immigration and Citizenship

Community Assistance Scheme (CAS) Operation Framework Transitional Accommodation Policy Addendum

7 28 May 2013 Mr Christopher Callanan, First Assistant Secretary, Department of Immigration and Citizenship

Bridging visas–Information for people who arrived by boat

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Attorney-General's Portfolio, 29 and 30 May 2013

No. Date Tabled by: Topic

1 29 May 2013 Mr Michael Pezzullo, Chief Executive Officer, Australian Customs and Border Protection Service

Opening statement

2 29 May 2013 Professor Gillian Triggs, President, Australian Human Rights Commission Right to freedom of information, opinion and

expression

3 29 May 2013 Professor Gillian Triggs, President, Australian Human Rights Commission Media Reform Bills Package

4 29 May 2013 The Hon. Susan Ryan AO, Age Discrimination Commissioner, Australian Human Rights Commission

Back pocket brief-age stereotyping project

5 29 May 2013 Senator Hanson-Young Interview Preamble for

Offshore Entry Persons (OEPs) and non-OEPs

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The Senate

Rural and Regional Affairs

and Transport

Legislation Committee

Budget estimates 2013-14

June 2013

219

© Commonwealth of Australia 2013

ISBN 978-1-74229-867-2

This document was prepared by the Senate Standing Committee on Rural and Regional Affairs and Transport and printed by the Senate Printing Unit, Department of the Senate, Parliament House, Canberra.

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iii

Membership of the committee

Members

Senator Glenn Sterle, Chair Western Australia, ALP

Senator the Hon. Bill Heffernan, Deputy Chair New South Wales, LP Senator Alex Gallacher South Australia, ALP

Senator Fiona Nash New South Wales, NATS

Senator Rachel Siewert Western Australia, AG

Senator the Hon. Lin Thorp Tasmania, ALP

Participating Members

Senator Abetz Senator Back Senator Bernardi Senator Bilyk Senator Birmingham Senator Bishop Senator Boswell Senator Boyce Senator Brandis Senator C Brown Senator Bushby Senator Cameron Senator Cash Senator Colbeck

Senator Cormann Senator Crossin Senator Di Natale Senator Edwards Senator Eggleston Senator Faulkner Senator Fawcett Senator Fierravanti-Wells Senator Fifield Senator Fisher Senator Furner Senator Hanson-Young

Senator Humphries Senator Johnston Senator Joyce Senator Kroger Senator Ludlam Senator Macdonald Senator Madigan Senator McEwen Senator McKenzie Senator Marshall Senator Mason Senator Milne Senator Moore Senator Parry Senator Payne

Senator Polley Senator Pratt Senator Rhiannon Senator Ronaldson Senator Ryan Senator Scullion Senator Singh Senator Smith Senator Stephens Senator Thistlethwaite Senator Waters Senator Whish-Wilson Senator Williams Senator Wright Senator Xenophon

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Secretariat

Mr Stephen Palethorpe, Secretary Ms Kirsty Cattanach, Research Officer Ms Lauren Carnevale, Administration Officer

PO Box 6100 Parliament House Canberra ACT 2600 Ph: 02 6277 3511 Fax: 02 6277 5811 E-mail: rrat.sen@aph.gov.au Internet: www.aph.gov.au/senate_rrat

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TABLE OF CONTENTS

Membership of committee……………………………………………………iii

List of Abbreviations ......................................................................................... ix

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

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

Variation of portfolios ............................................................................................ 1

Budget Estimates hearings ..................................................................................... 1

Changes to departmental structures ........................................................................ 2

Questions on notice ................................................................................................ 3

Additional information ........................................................................................... 3

Note on references .................................................................................................. 4

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

Agriculture, Fisheries and Forestry portfolio ........................................................ 5

Department of Agriculture, Fisheries and Forestry ................................................ 5

Finance and Business Support, Government, Information Services, and People and Service Delivery .............................................................................................. 6

Interim Inspector-General of Biosecurity ............................................................... 7

Office of the Chief Veterinary Officer and Animal Health Australia .................... 8

Biosecurity—Animal Division and Live Animal Exports Division ...................... 9

Meat and Livestock Australia and Australian Livestock Export Corporation Limited.................................................................................................................. 11

Border Compliance and Post Entry Quarantine Program .................................... 12

Biosecurity—Plant ............................................................................................... 13

Food ...................................................................................................................... 14

Biosecurity—Policy Division ............................................................................... 15

Rural Industries Research and Development Corporation ................................... 16

Australian Bureau of Agricultural and Resource Economics and Sciences ......... 16

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Australian Pesticides and Veterinary Medicines Authority ................................. 17

Australian Fisheries Management Authority ....................................................... 18

Sustainable Resource Management ...................................................................... 20

Australian Wool Innovation Limited ................................................................... 21

Climate Change .................................................................................................... 21

Australian Egg Corporation Limited .................................................................... 23

Grains Research and Development Corporation .................................................. 23

Agricultural Productivity ...................................................................................... 24

Trade and Market Access ..................................................................................... 25

Chapter 3............................................................................................................ 27

Infrastructure and Transport portfolio................................................................ 27

Department of Infrastructure and Transport ......................................................... 27

Corporate Services ................................................................................................ 27

Nation Building—Infrastructure Investment and Infrastructure Australia .......... 28

Australian Rail Track Corporation ....................................................................... 31

Inspector of Transport Security and the Office of Transport Security ................. 32

Aviation and Airports ........................................................................................... 33

Airservices Australia ............................................................................................ 34

Civil Aviation Safety Authority ........................................................................... 35

Australian Transport Safety Bureau ..................................................................... 36

Australian Maritime Safety Authority .................................................................. 37

Surface Transport Policy ...................................................................................... 37

Policy and Research ............................................................................................. 38

Chapter 4............................................................................................................ 39

Regional Australia, Local Government, Arts and Sport portfolio .................... 39

Department of Regional Australia, Local Government, Arts and Sport .............. 39

Corporate Services ................................................................................................ 39

Office for Sport, Australian Sports Anti-Doping Authority and Australian Sports Commission .......................................................................................................... 40

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Office for the Arts and the Australia Council for the Arts ................................... 42

National Film and Sound Archive, National Gallery of Australia and Screen Australia................................................................................................................ 43

Regional Development ......................................................................................... 44

Local Government ................................................................................................ 46

Services to Territories ........................................................................................... 47

Appendix 1 ......................................................................................................... 49

Tabled of contents to proof Hansard transcripts ................................................ 49

Budget Estimates 2013-14 .................................................................................... 49

Agriculture, Fisheries and Forestry portfolio ...................................................... 49

Infrastructure and Transport portfolio ................................................................. 49

Regional Australia, Local Government, Arts and Sport portfolio ....................... 49

Monday 27 May 2013 ............................................................................................. 50

Agriculture, Fisheries and Forestry portfolio ....................................................... 50

Tuesday 28 May 2013 ............................................................................................. 51

Agriculture, Fisheries and Forestry portfolio ....................................................... 51

Wednesday 29 May 2013 ........................................................................................ 52

Infrastructure and Transport portfolio .................................................................. 52

Thursday 30 May 2013 ........................................................................................... 53

Regional Australia, Local Government, Arts and Sport portfolio ....................... 53

Appendix 2 ......................................................................................................... 55

Tabled Documents .................................................................................................. 55

Agriculture, Fisheries and Forestry portfolio ....................................................... 55

Infrastructure and Transport portfolio .................................................................. 56

Regional Australia, Local Government, Arts and Sport portfolio ....................... 56

Appendix 3 ......................................................................................................... 57

Topic list .................................................................................................................. 57

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Agriculture, Fisheries and Forestry portfolio ...................................................... 57

Appendix 4 ......................................................................................................... 63

Topic list .................................................................................................................. 63

Infrastructure and Transport portfolio................................................................ 63

Appendix 5 ......................................................................................................... 69

Topic list .................................................................................................................. 69

Regional Australia, Local Government, Arts and Sport portfolio .................... 69

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List of Abbreviations

ABARES Australian Bureau of Agricultural and Resource Economics and Sciences

ACC Australian Crime Commission

ACERA Australian Centre of Excellence in Risk Analysis

AECL Australian Egg Corporation Limited

AFMA Australian Fisheries Management Authority

ALEC Australian Livestock Exporters Council

AMSA Australian Maritime Safety Authority

ANEI Australian Noise Exposure Index

APVMA Australian Pesticides and Veterinary Medicines Authority

ARTC Australian Rail Track Corporation

ASADA Australian Sports Anti-Doping Authority

ATSB Australian Transport Safety Bureau

AWI Australian Wool Innovation Limited

BJD Bovine Johne's Disease

CANSO Civil Air Navigation Service Organisation

CASA Civil Aviation Safety Authority

CDDA Scheme for Compensation for Detriment caused by Defective Administration

CIQ Customs, Immigration and Quarantine

COAG Council of Australian Governments

CSIRO Commonwealth Scientific and Industrial Research Organisation

DAFF Department of Agriculture, Fisheries and Forestry

ESCAS Exporter Supply Chain Assurance System

GRDC Grain Research and Development Corporation

IER Industry Equalisation Reserves

LiveCorp Australian Livestock Export Corporation Limited

MCU Major Cities Unit

MLA Meat and Livestock Australia

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MYEFO Mid-Year Economic Fiscal Outlook

NASAG National Airports Safeguarding Advisory Group

NRAC National Rural Advisory Council

NRS National Residue Survey

QDAFF Queensland Department of Agriculture, Fisheries and Forestry

Regional Australia

Department of Regional Australia, Local Government, Arts and Sport

RDA Regional Development Australia committees

RFA Regional Forest Agreements

RIRDC Rural Industries Research and Development Corporation

SCoPI Standing Council on Primary Industries

SEWPaC Department of Sustainability, Environment, Water, Population and Communities

STCW Standards of Training, Certification and Watchkeeping

conventions

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Chapter 1

Introduction

1.1 On 14 May 2013, the Senate referred the following documents to the Rural and Regional Affairs and Transport Legislation Committee (the committee) for examination and report in relation to the Agriculture, Fisheries and Forestry portfolio, the Infrastructure and Transport portfolio, and the Regional Australia, Local Government, Arts and Sport portfolio:

• particulars of proposed expenditure in respect of the year ending on 30 June 2014 [Appropriation Bill (No.1) 2013-14]; and

• particulars of certain proposed expenditure in respect of the year ending

on 30 June 2014 [Appropriation Bill (No.2) 2013-14].1

1.2 The committee is required to report to the Senate on its consideration of 2013-14 Budget Estimates on 25 June 2013.

Variation of portfolios

1.3 On 8 February 2012, the Senate amended the continuing order relating to the allocation of departments and agencies to committees. The change of allocations resulted in the committee changing its name from Rural Affairs and Transport, to Rural and Regional Affairs and Transport, and also taking responsibility for the oversight of the Regional Australia, Local Government, Arts and Sport portfolio.

1.4 On 15 May 2013, the Senate amended the continuing order relating to the allocation of departments and agencies to committees.2 The change of allocations reflected the Prime Minister's announcement regarding ministerial responsibility of the Regional Australia, Local Government, Arts and Sport portfolio.3

Budget Estimates hearings

1.5 The committee considered the Portfolio Budget Statements 2013-14 for all portfolios at hearings between 27 and 30 May 2013. The hearings were conducted in accordance with the agreed agenda as follows:

• Monday 27 and Tuesday 28 May – Agriculture, Fisheries and Forestry;

• Wednesday 29 May – Infrastructure and Transport; and

1 Journals of the Senate, No. 144, 14 May 2013, p. 3914.

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

3 The Hon Julia Gillard MP, Prime Minister of Australia, 'Changes to the Ministry', Media release, 25 March 2013, www.pm.gov.au/press-office/changes-ministry-2 (accessed 3 June 2013).

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• Thursday 30 May – Regional Australia, Local Government, Arts and

Sport.

1.6 The committee heard evidence from:

• Senator the Hon Joe Ludwig, Minister for Agriculture, Fisheries and

Forestry;

• Senator the Hon Matt Thistlethwaite, Parliamentary Secretary for

Multicultural Affairs and Parliamentary Secretary for Pacific Island Affairs representing the Minister for Infrastructure and Transport and the Minister for Road Safety; and

• Senator the Hon Kate Lundy, Minister for Sport, Minister for Multicultural Affairs and Minister Assisting for Industry and Innovation, representing the Minister for Regional Development and Local Government, Minister for Regional Services, Local Communities and Territories, and the Minister for the Arts.

1.7 Evidence was also provided by:

• Mr Andrew Metcalfe AO, Secretary of the Department of Agriculture,

Fisheries and Forestry;

• Mr Mike Mrdak, Secretary of the Department of Infrastructure and

Transport;

• Ms Glenys Beauchamp, Secretary for the Department of Regional

Australia, Local Government, Arts and Sport; and

• officers representing the departments and agencies covered by the

estimates before the committee.

1.8 The committee thanks the ministers, departmental secretaries and officers for their assistance and cooperation during the hearings.

Changes to departmental structures

1.9 Mr Metcalfe, Secretary of the Department of Agriculture, Fisheries and Forestry informed the committee in his opening statement on 27 May 2013 of planned changes to the department's structure, which will occur from 1 July 2013.

1.10 On 1 July 2013, two new branches will be established within the Governance Division under the responsibility of Deputy Secretary, Mr Mark Tucker. The Strategic Policy Branch will be established to provide a long-term view across the agriculture, fisheries and forestry industries. The Office of the Chief Lawyer is also being established after Mr Metcalfe commissioned an independent review of DAFF's legal capability shortly after commencing as secretary. The review found that DAFF would

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be better served by redirecting some of its external legal expenditure to enhance its in-house legal capability.4

1.11 Mr Metcalfe also advised the committee of his decision not to go through with the planned merger of the Agricultural Productivity, Sustainable Resource Management and Climate Change Divisions, which was identified at Additional Estimates in February 2013, stating that:

Having now looked at the issues more closely…it is not the right time for a major restructure across those policy divisions given the amount of work that is underway.5

1.12 Mr Mrdak, Secretary of the Department of Infrastructure and Transport, informed the committee of a change to the department's structure in his opening statement on Wednesday, 29 May 2013, which has occurred since Additional estimates of February 2013.

1.13 The Major Cities Unit (MCU) has been merged with the Policy and Research Division, which occurred as a result of Ms Ekelund's decision to leave the department.6 Mr Collett, General Manager of the MCU, later told the committee that the merger of the MCU into the Policy and Research Division provides an additional senior executive service officer to support the work of unit.7

Questions on notice

1.14 In accordance with Standing Order 26, the committee is required to set a date for the lodgement of written answers and additional information. The committee resolved that written answers and additional information be submitted by 26 July 2013.

Additional information

1.15 Answers to questions taken on notice at the committee's Additional Estimates hearings will be tabled in the Senate in separate volumes entitled 'Additional information relating to the examination of Budget Estimates 2013-14 May 2013, Senate Rural and Regional Affairs and Transport Legislation Committee'. Documents not suitable for inclusion in the additional information volumes will be available on request from the committee secretariat.

4 Estimates Hansard, 27 May 2013, pp 6–7.

5 Estimates Hansard, 27 May 2013, p. 6.

6 Estimates Hansard, 29 May 2013, p. 4.

7 Estimates Hansard, 29 May 2013, pp 127–128.

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1.16 Answers to questions on notice received from the departments will also be posted on the committee's website at a later date.8

Note on references

1.17 References to the Hansard transcript are to the proof Hansard; page numbers may vary between the proof and the official Hansard transcript.

8 Answers to questions on notice, once received, will be published at the following website address: www.aph.gov.au/Parliamentary_Business/Committees/Senate_Committees?url=rrat_ctte/estim ates/index.htm.

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Chapter 2

Agriculture, Fisheries and Forestry portfolio

2.1 This chapter contains the key issues discussed during the 2013-14 Budget Estimates hearings for the Agriculture, Fisheries and Forestry portfolio. A complete list of all the topics discussed, and relevant Hansard page numbers, can be found at appendix 3.

Department of Agriculture, Fisheries and Forestry

2.2 The committee heard evidence from the department and agencies on Monday 27 and Tuesday 28 May 2013. The hearing was conducted in the following order:

• Finance and Business Support; Government; Information Services; and

People and Service Delivery;

• Interim Inspector-General of Biosecurity;

• Office of the Chief Veterinary Officer; and Animal Health Australia;

• Biosecurity—Animal Division; and Live Animal Exports Division;

• Meat and Livestock Australia; and Australian Livestock Export

Corporation Limited;

• Border Compliance; and Post Entry Quarantine Program;

• Biosecurity—Plant;

• Food;

• Biosecurity—Policy Division;

• Rural Industries Research and Development Corporation;

• Australian Bureau of Agricultural and Resource Economics and

Sciences;

• Australian Pesticides and Veterinary Medicines Authority;

• Australian Fisheries Management Authority;

• Sustainable Resource Management;

• Australian Wool Innovation Limited;

• Climate Change;

• Australian Egg Corporation Limited;

• Grains Research and Development Corporation;

• Agricultural Productivity; and

• Trade and Market Access.

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Finance and Business Support, Government, Information Services, and People and Service Delivery

2.3 DAFF's Secretary, Mr Andrew Metcalfe, informed the committee during his opening statement of the recommendations from the Australian Public Service Commission Capability Review of the department led by Dr Sue Vardon AO, Dr John Stocker AO and Dr David Gruen. The key findings of the review were:

• to further strengthen its capabilities in relation to being a policy leader

responsive to the government of the day;

• be client focused with a modern service delivery approach;

• be proactive in programs that protect the animal, plant and human health status of Australia;

• improve the productivity of portfolio industries;

• be innovative in its approach to business and ICT systems; and

• be a source of easily accessible public information through effective

communication.1

2.4 The committee congratulated the department and the Minister for Agriculture, Fisheries and Forestry Senator the Hon Joe Ludwig for providing answers to questions on notice from Additional Estimates of February 2013 by the due date.2

2.5 The committee asked officers to explain how the National Food Plan is going to be funded, as the plan was announced by the Minister for Agriculture, Fisheries and Forestry Senator the Hon Joe Ludwig after the Budget on 25 May 2013. Officers told the committee that:

The Food Plan delivers about $42 million in new initiatives, most of which sit within this portfolio… the department will be receiving $37.42 million and some of the initiatives will be absorbed by the Department of Education, Employment and Workplace Relations. Together they amount to $42 million.3

2.6 In continuing interest from previous estimates hearings, the committee sought an update on the average number of unscheduled absences taken by staff.4 Ms Lynne O'Brien, First Assistant Secretary, told the committee that the department 'is currently tracking at 15.1 days' unscheduled absences per employee, per annum.5 At Additional

1 Estimates Hansard, 27 May 2013, p. 5.

2 Estimates Hansard, 28 May 2013, p. 4.

3 Estimates Hansard, 27 May 2013, p. 7.

4 Estimates Hansard, 27 May 2013, p. 9.

5 Estimates Hansard, 27 May 2013, p. 9.

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Estimates in February 2013 the commit heard that the mean number of unscheduled absences was 15.2 days, which is a reduction of 0.1 days.6

2.7 Ms O'Brien further explained that the department:

…have a relatively small proportion of staff that utilise a lot of leave. What we have found is that 50 per cent of our leave is taken by 15 per cent of our staff.7

2.8 The committee also discussed the following topics:

• staffing reductions;

• the relocation of equipment;

• performance measures applied to the department's International Engagement Team;

• the number of claims lodged under the Scheme for Compensation for

Detriment caused by Defective Administration (CDDA); and

• changes to the export licencing fees. 8

Interim Inspector-General of Biosecurity

2.9 The committee asked whether the work plan undertaken by the Interim Inspector-General of Biosecurity is at the request of the minister or if it's developed in consultation with stakeholders. Dr Kevin Dunn, Interim Inspector-General of Biosecurity, explained that the work program is developed in consultation with the department and industry groups such as Plant Health Australia and Animal Health Australia. Mr Metcalfe added that the interim Inspector-General of Biosecurity is 'focused on an assurance process around the department's decision making relating to biosecurity issues'.9

2.10 The Interim Inspector-General of Biosecurity's current work program includes the following projects:

• an audit of the biosecurity risk management measures for the

importation of uncooked and cooked pig meat;

• an assessment of the performance of biosecurity risk management measures for the importation of animal breeding material; and

• an audit of the biosecurity risk management measures for international mail and air cargo with a particular focus on online buying.10

6 Estimates Hansard, 11 February 2013, pp 10–11.

7 Estimates Hansard, 27 May 2013, p. 9.

8 Estimates Hansard, 27 May 2013, pp 12–17.

9 Estimates Hansard, 27 May 2013, pp 17–18.

10 Estimates Hansard, 27 May 2013, pp 17–18.

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Office of the Chief Veterinary Officer and Animal Health Australia

2.11 The committee discussed Bovine Johne's Disease and the involvement of the Australian Government with the current outbreak in Queensland. Dr Bob Biddle, Acting Chief Veterinary Officer, told the committee that the National Johne's Disease Control Program includes all states and territories as well as the sheep and cattle industries. The program was designed to assist industry to limit the spread of and impacts of the disease nationally and is managed by Animal Health Australia.11

2.12 Officers provided an update regarding the number of properties affected by the outbreak Bovine Johne's Disease:

Initially there were approximately 150 properties in Queensland and 35 interstate that received live cattle from the original infected property… 53 in Queensland, are under state or territory government quarantine and movement restrictions while we undergo investigations and tracings… in the Northern Territory there were initially 11. It is down to about one property remaining that is still under restriction while we undergo further investigations… in WA there were initially about 14 and that has been reduced to the point where we have one actual detection in one bull, which is being managed between the Commonwealth and state governments.12

2.13 The committee asked Animal Health Australia to explain the compensation scheme available through the National Johne's Disease Control Program. Dr Michael Bond, Chief Executive Officer, told the committee that individual cattle producers can apply for assistance through the Financial and Non-Financial Assistance Package, which is capped at $11 000. Dr Bond added that the financial assistance package 'was reduced to $11 000 because there was concern about the available funds being exhausted'.13

2.14 The committee discussed the current issue of starving cattle in Queensland and whether they should be allowed to graze in national parks, which was reported in The Weekend Australian on 25 May 2013.14 The Minister for Agriculture, Fisheries and Forestry, Senator the Hon Joe Ludwig told the committee that:

…animal welfare is principally and primarily a state responsibility… Minister McVeigh…declared a drought in that area and state assistance has been provided… if you come back to the national park issue…I am not responsible for national parks but I certainly do take an interest through SCoPI, which is the Standing Council on Primary Industries.15

11 Estimates Hansard, 27 May 2013, p. 21.

12 Estimates Hansard, 27 May 2013, p. 21.

13 Estimates Hansard, 27 May 2013, p. 25.

14 The Weekend Australian, 'Cruel truths hit home as cattle export ban, bushfires and drought wreak devastating toll', 25 May 2013, pp 1, 4–5.

15 Estimates Hansard, 27 May 2013, p. 30.

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2.15 The committee sought an update on the review of the Australian Standards for the Export of Livestock. Dr Biddle told the committee that:

…the livestock industry and the livestock export industry are actively involved in the review process and their submission are being actively considered, as to the outcome, well, I cannot speculate about that.16

2.16 The committee also discussed the following topics:

• strain typing of the Bovine Johne's Disease;

• Lyssa virus;

• Australian Animal Welfare Standards and Guidelines for cattle and

sheep; and

• Hendra virus. 17

Biosecurity—Animal Division and Live Animal Exports Division

2.17 The committee asked the department whether it had carried out an assessment regarding the cause of the apparent oversupply of cattle in Queensland. Mr Phillip Glyde, Deputy Secretary, told the committee that:

…we have not done an assessment of that nature in terms of what are the various sources of the problem of oversupply of animals in that particular region. What we have relied on is the advice from QDAFF and AgForce who estimate that around…three million head of cattle are affected by drought conditions. We have been relying on those two organisations to keep us up to date in relation to the animal welfare issues.18

2.18 The committee asked officers to explain whether a Memorandum of Understanding had been signed with China regarding the trade of live cattle. Mr Glyde informed the committee that 'we currently trade with China…in dairy cattle animals'.19 Mr Andrew Cupit added:

…we have traded in breeders to China and that has been established for quite a while… for slaughter cattle there have been ongoing discussions over a number of years but there is no protocol at this stage… we have with ALEC, the Australian Livestock Exporters' Council, ongoing meetings with them twice a year and in between to determine the priority status for different markets… slaughter cattle for China are not in the top one or two priorities.20

16 Estimates Hansard, 27 May 2013, p. 27.

17 Estimates Hansard, 27 May 2013, pp 22–25 and 27–28.

18 Estimates Hansard, 27 May 2013, p. 31.

19 Estimates Hansard, 27 May 2013, p. 35.

20 Estimates Hansard, 27 May 2013, pp 35–36.

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2.19 Mr Metcalfe explained the level one priorities for market access that the department are currently being pursuing:

We work with the Australian Livestock Exporters Council's (ALEC) protocol committee to establish the priorities for market access area. The last meeting of that committee happened in Fremantle on 14 November last year. The priorities are as follows. Priority 1 is Cambodia cattle breeder and feeder, then China with the PRC breeder cattle, and the third breeder cattle

to Russia, Kazakhstan and Belarus.21

2.20 The committee discussed the Exporter Supply Chain Assurance System (ESCAS) and alleged breaches of animal welfare. Mr Glyde reminded the committee that exporters are responsible for providing assurances that the animals in their supply

chain are treated in accordance with international animal welfare standards. The department is responsible for monitoring and supervising the ESCAS system.22

2.21 The committee sought an update on the current investigation into footage alleging Australian cattle were mistreated in Egyptian abattoirs. The footage aired on 6 May 2013 on the Australian Broadcasting Corporation's 7:30 program.23 Mr Glyde told the committee:

…there have been a number of claims made by the people who brought forward the information, Animals Australia, and a number of other claims have been made. We are currently investigating that and I would not want to speculate at this stage.24

2.22 The committee also discussed the following topics:

• the health of animals being transported through Australia for live animal

export;

• funding allocated for overseas development aid programs;

• an update on the investigation relating to the alleged incident of animal cruelty on Bahrain-Pakistan ship; and

• the reallocation of funding for the animal biosecurity and response

reform program.25

21 Estimates Hansard, 27 May 2013, pp 37–38.

22 Estimates Hansard, 27 May 2013, p. 40.

23 Australian Broadcasting Corporation 7:30, 'Cattle cruelty footage suspends trade, sparks live export debate', 6 May 2013, www.abc.net.au/7.30/content/2013/s3753039.htm, (accessed 12 June 2013).

24 Estimates Hansard, 27 May 2013, p. 43.

25 Estimates Hansard, 27 May 2013, pp 30–31 and 39–42.

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Meat and Livestock Australia and Australian Livestock Export Corporation Limited

2.23 The committee inquired into the 2013-14 budget positions of Meat and Livestock Australia (MLA) and Australian Livestock Export Corporation Limited (LiveCorp). Mr Scott Hansen, Managing Director, told the committee that at the moment MLA's budget for 2013-14 remains relatively unchanged from 2012-13 in terms of income and expenditure forecasts.26 Mr Malcolm Foster, Acting Chairman and Director, told the committee that LiveCorp's budget for 2013-14 '…is forecast to be slightly higher than this financial year'.27

2.24 The committee asked officers to explain MLA's role in free trade agreements, specifically in relation to China and South Korea. Mr Hansen explained that MLA are active in conducting market analysis on the likely impact on the competiveness of Australian beef for the following scenarios:

• should Australia sign an free trade agreement;

• should Australia not sign an free trade agreement; and

• should Australia's competitors sign a free trade agreement. 28

2.25 Mr Hansen provided the committee with following example regarding the likely impact on Australian beef as a result of South Korea signing a free trade agreement with the United States of America:

…we have been able to analyse the figures to show that if we do not get a free trade agreement in place with Korea before the end of this year we will see the US move to an eight per cent tariff differential by the start of 2014… That eight per cent tariff differential, on our modelling, says that it will cost us around $28 million in lost market share to the Americans because of that price differential.29

2.26 The committee sought an update from LiveCorp in relation to re-engaging with Saudi Arabia under the ESCAS system. Mr Sam Brown, Chief Executive Officer, told the committee that:

The bulk of our effort with…Saudi Arabia is being delivered through our peak council, ALEC, who are working closely with the department on raising and managing issues that have been raised.30

26 Estimates Hansard, 27 May 2013, p. 46.

27 Estimates Hansard, 27 May 2013, p. 54.

28 Estimates Hansard, 27 May 2013, p. 48.

29 Estimates Hansard, 27 May 2013, p. 48.

30 Estimates Hansard, 27 May 2013, p. 54.

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2.27 The committee enquired about live exports to Vietnam. Mr Brown explained that Vietnam is a market of interest for LiveCorp, as it offers opportunities for modest market growth within the Asian region.31

2.28 The committee also discussed the following topics:

• Indonesia's long-term plan around self-sufficiency;

• the growth of live exports compared to chilled box; and

• genetically modified-free feed for cattle. 32

Border Compliance and Post Entry Quarantine Program

2.29 The committee discussed the movement and balances of the Industry Equalisation Reserves (IER). Mr Tim Chapman, First Assistant Secretary, told the committee that the $10 million deficit recorded for the import operation reserve was due to the last fee increase occurring in July 2009.33 Mr Darren Schaeffer, Chief Finance Officer, added:

…over time the program will dip into deficit with the expectation that we will recoup that when we reset the fees on average over a period of time.34

2.30 The committee asked whether the IER IT system, BICON, was on schedule for completion in June 2013. Officers told the committee that the completion date had been revised, as another 12 months work is required before the department will have a fully functioning system ready to roll out.35

2.31 The committee sought information regarding the funding of the BICON system. Officers explained that funding is split with 75 per cent being funded by cost recovery from the industry through the import operations reserve. The remaining 25 per cent will be funded by a Commonwealth appropriation. Mr Chapman went on to explain:

Under cost recovery guidelines it is considered appropriate that the users of the service pay for all the associated functions…that are required to support that service. BICON is a system which will very much be in existence to support importers and to support the delivery of biosecurity services to importers.36

2.32 Ms Rona Mellor, Deputy Secretary told the committee the object of BICON system is for an importer to be able to apply, pay and receive approval for a permit

31 Estimates Hansard, 27 May 2013, p. 54.

32 Estimates Hansard, 27 May 2013, pp 49–54.

33 Estimates Hansard, 27 May 2013, p. 56.

34 Estimates Hansard, 27 May 2013, p. 57.

35 Estimates Hansard, 27 May 2013, p. 58.

36 Estimates Hansard, 27 May 2013, p. 58.

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online. Currently importers must interact with the department to apply for a permit, as the department's e-permit and e-lodgement systems are email based.37

2.33 Continuing its interest from previous estimates hearings, the committee discussed the proposed design and development of a new post-entry quarantine facility in Mickleham, Victoria. Officers told the committee that the Joint Parliamentary Standing Committee on Public Works recommended in its Report 2/2013 – Referrals made February to April 2013 for construction of the new post-entry quarantine facility to commence in late 2013.38

2.34 The committee also discussed the following topics:

• the Bovine Johne's Disease protocol;

• changes to certificates for the export of box meat into China;

• the Northern Australia Quarantine Strategy;

• the risk of disease posed by raw marinated prawns imported into

Australia; and

• managing biosecurity risks associated with an increase of cruise ship

passengers.39

Biosecurity—Plant

2.35 The committee asked officers to explain the current review to allow the importation of fresh table grapes from California into Western Australia. Officers told the committee, in response to the release of the Draft Non-Regulated Analysis of Existing Policy for Californian Table Grapes to Western Australia, 13 submissions were received and as at 27 May 2013 were being assessed. Dr Vanessa Findlay, Chief Plant Protection Officer, told the committee that the next step is for the final report to be produced, which will recommend whether the importation of Californian table grapes into Western Australia should commence.40

2.36 The committee discussed the National Fruit Fly strategy. Dr Findlay, gave the committee the following update:

Previously I had advised that we were working towards the establishment of the governance body, which is the group that would oversight the implementation of the fruit fly strategy and the action plan that sits underneath that. We have been working towards that, led by Plant Health Australia, and all state and territory governments and the Australian government have reached agreement on what contribution they would

37 Estimates Hansard, 27 May 2013, p. 60.

38 Parliamentary Standing Committee on Public Works, Report 2/2013 – Referrals made February to April 2013, May 2013, pp 11–20.

39 Estimates Hansard, 27 May 2013, pp 65, 70–78.

40 Estimates Hansard, 27 May 2013, pp 79–80.

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make. Unfortunately, we have been unsuccessful to date in getting agreement from the industries as to how they would participate and what contribution they would make to that governance body.41

2.37 The committee asked for an update regarding the importation of New Zealand apples into Australia. Ms Louise van Meurs, Assistant Secretary, told the committee that, as of 21 May 2013, there were four permits to import apples from New Zealand and no shipments had been received. The season is expected to run from May through to October.42

2.38 The committee also discussed the following topics:

• the importation of roses from South America;

• the horticulture register establishment;

• sterile insect technology; and

• horticulture export program costs. 43

Food

2.39 The committee discussed the allegation of high bacteria levels in long-life milk imported into Hong Kong. Officers told the committee that the Hong Kong Centre for Food Safety had tested the milk and identified a high bacteria count. Mr Read, First Assistant Secretary, added that the department was making enquiries with the processor, exporter and the Western Australia Department of Health to gain further information about what may have affected the product's shelf life.44

2.40 The committee discussed the National Residue Survey (NRS) and its relationship with FreshTest data. Mr Read explained that FreshTest data is commercially collected data whereas the NRS is a specific survey of data addressing the need of the importing country. He further stated that:

…internationally, because of tradition, custom and practice, and for a range of other reasons, it is extremely difficult to get those international governments to accept the independence of data other than what is collected in a very transparent way by an agency such as NRS.45

2.41 The committee also discussed the following topics:

• the status of onions within the National Residue Survey;

41 Estimates Hansard, 27 May 2013, p. 80.

42 Estimates Hansard, 27 May 2013, pp 80–81.

43 Estimates Hansard, 27 May 2013, pp 80–81, 82, 85 and 87–89.

44 Estimates Hansard, 27 May 2013, p. 93.

45 Estimates Hansard, 27 May 2013, p. 95.

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• the status of reforms, efficiencies, cost savings and red tape reductions

for non-European Union and American cold stores;

• the outcome of the containers of frozen beef that were not accepted into Indonesia and left on a wharf in Jakarta, Indonesia; and

• bilingual certificates with China. 46

Biosecurity—Policy Division

2.42 The committee heard that the department is currently reviewing the Biosecurity Surveillance, Incident Response and Tracing (BioSIRT) program. BioSIRT is used for the collection of information in relation to national incidences. Ms Mellor explained that:

Over time, the feedback from the states and territories in relation to the software has been that it is quite clunky and is not serving their needs. The states and territories and the Commonwealth have come to an agreement to look for a new IT solution. This has been agreed through the primary industry standing council and the ministerial council.47

2.43 The committee discussed the department's import risk analysis process, the risk estimation matrix and advice from the Australian Centre of Excellence in Risk Analysis (ACERA) in relation to Mr Peace's report titled Advice on the risk estimation matrix used by DAFF Biosecurity as part of the Import Risk Analysis process.48 ACERA's advice commented critically on the information provided to the Rural and Regional Affairs and Transport References Committee by Mr Peace.49

2.44 Dr Findlay explained to the committee, the risk estimation matrix methods used in the United States, Canada, the European Union and New Zealand compared to Australia's current system stating:

…The key difference with the New Zealand method is that they do not use a matrix to combine likelihood and consequence assessments. Similarly, in the US they have a different way of bringing together the separate events that must occur for consequences to arise. In Canada, it is the same. Canada's assessments are probably the most like ours, but they do not use a transparent method for combining likelihood and consequence.50

46 Estimates Hansard, 27 May 2013, pp 94, 96–97, 99 and 100–102.

47 Estimates Hansard, 27 May 2013, p. 102.

48 The Rural and Regional Affairs and Transport References Committee sought independent, specialist advice in relation to the risk estimation matrix for its inquiries regarding the importation of pineapples from Malaysia, potatoes from New Zealand and fresh ginger from Fiji. Mr Peace's report can be accessed via www.aph.gov.au/Parliamentary_Business/Committees/Senate_Committees?url=rrat_ctte/pinea pples_2012/peace_report/index.htm.

49 Estimates Hansard, 27 May 2013, pp 103–105.

50 Estimates Hansard, 27 May 2013, p. 104.

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Rural Industries Research and Development Corporation

2.45 The committee asked the Rural Industries Research and Development Corporation (RIRDC) to outline its budget position for 2013-14 compared to 2012-13. Mr Craig Burns, Managing Director, told the committee that:

There is virtually no change between the two years. We went from total income in the last financial year of $23.1 million to this coming year of $23.3 million… The only significant changes are around the levies income, which has seen a slight increase with the increased production of rice. Expenditure will stay very much the same as the current year.51

2.46 The committee discussed RIRDC's proposal to introduce a levy in the thoroughbred industry. Officers explained that a horse industry program has existed for many years, which was based on voluntary contributions that RIRDC matched. RIRDC is proposing a levy on the thoroughbred industry that is matched by

Commonwealth funding, which would provide greater certainty of funding. Mr Burns told the committee that the thoroughbred industry is yet to vote on the proposal however, feedback indicates consultations are progressing well.52

2.47 The committee inquired whether RIRDC has looked at alternative uses for plantation timber due to the apparent failure of tree farms and the managed investment scheme. Officers told the committee that there is not a current program looking at trees on farms, rather RIRDC has a program focused on Northern Tasmania. Mr Burns explained that the program is looking at structural change within the region and industry options and potential growth in new industries.53

Australian Bureau of Agricultural and Resource Economics and Sciences

2.48 In continuing its interest from previous estimates hearings, the committee sought an update on wild dog management. Mr Paul Morris, Executive Director, told the committee that Australian Bureau of Agricultural and Resource Economics and

Sciences (ABARES) is currently working on a report, which will encompass the economic impacts of wild dogs and the psychological effect it has on farm families. As of 14 June 2013 the report has not been published.54

2.49 Ms Lisa Elliston, Assistant Secretary, added:

ABARES is also working on [a] related project to wild dogs titled 'Wild dog management in Australia—a landscape approach including people, pests and place. That is a project that is examining the appropriateness and

the capacity of public and private stakeholders to adopt a collective action

51 Estimates Hansard, 27 May 2013, p. 113.

52 Estimates Hansard, 27 May 2013, p. 113.

53 Estimates Hansard, 27 May 2013, p. 113.

54 Estimates Hansard, 27 May 2013, p. 114.

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model to improve wild dog management in Australia. That is a project that is ongoing and is not scheduled to finish until 2014.55

2.50 The committee enquired into how ABARES' produces the estimates for Australian wheat crops. Mr Morris told the committee:

I think the approach we take is using the best possible information we can use in coming up with those forecasts and collecting as much on-the-ground information as we can get. But we are constantly reviewing how we go about doing it and trying to introduce new information and new techniques to try to improve the way that we do our forecasting.56

2.51 The committee asked whether ABARES is conducting research on the effect the collapse of managed investment schemes has had on projected supply of plantation timber. Mr Morris told the committee:

In terms of plantation numbers…our previous figures obviously show the quite significant decline in new plantation areas over the last few years. That is going to be reflected in terms of wood supply going forward.57

2.52 The committee also discussed the following topics:

• the impact of climate change on Commonwealth fisheries;

• productivity forecasts and the effect of climate change;

• Western Australia's marine heatwave and effect on fisheries; and

• Multiperil crop insurance. 58

Australian Pesticides and Veterinary Medicines Authority

2.53 In continuing its interest from previous estimates hearings, the committee sought an update on the suspension of fenthion. Dr Raj Bhula, Program Manager Pesticides, told the committee that Australian Pesticides and Veterinary Medicines Authority (APVMA) anticipates receiving residue tests in June or July 2013, which will be incorporated into an occupational health and safety report and an environmental assessment to be published in late 2013.59

2.54 The committee enquired about the risk posed to operators who use the chemical trisulfin. Dr Allen Bryce, Program Manager Veterinary Medicines, told the committee that the Office of Chemical Safety within the Department of Health and Ageing assessed the occupational health and safety risks and recommended that

55 Estimates Hansard, 27 May 2013, p. 115.

56 Estimates Hansard, 27 May 2013, p. 116.

57 Estimates Hansard, 27 May 2013, p. 117.

58 Estimates Hansard, 27 May 2013, pp 119–124.

59 Estimates Hansard, 28 May 2013, p. 5.

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trisulfin was safe to use. The committee heard that there have been reports of operators suffering headaches from using trisulfin and Dr Bryce explained:

…we have unable to establish any casual connection between the use of the product and the symptoms that were shown. Very few cases have been reported.60

2.55 The committee asked about the process for registering chemicals that pose an unmanageable risk. Mr Matthew Koval, First Assistant Secretary, told the committee that:

The view we have taken about unmanageable risk is that the regulatory framework should look at risk. In any chemical, as the APVMA goes through the assessment process either through the initial assessment, the review or the reregistration process, if there is unmanageable risk then it should not be on the market. By definition if we actually have a strong regulatory framework that actually looks at risks and how to manage those risks, if you cannot manage those risks then the chemical should not be registered.61

2.56 The committee heard that a review of diuron was completed in

November 2012 into noticeable environmental and human health concerns. Dr Bhula explained that the review found in certain situations the approved rate of application for diuron presented an environmental risk. In response to the review, the APVMA has placed restrictions on the use of diuron including introducing a permit system, which will phase-out the chemical already in the supply chain.62

2.57 The committee also discussed the following topics:

• the reform agenda for agricultural veterinary chemicals;

• the re-registration process of chemicals;

• the spray drift problem for broadacre farming;

• the levels of carbendazim allowed in imported juice and concentrate; and

• the use of neonicotinoids. 63

Australian Fisheries Management Authority

2.58 The committee asked officers to explain the Australian Fisheries Management Authority's (AFMA) compliance and enforcement policy. Mr Peter Venslovas, General Manager Fisheries Operations, told the committee that the policy outlines the

60 Estimates Hansard, 28 May 2013, p. 6.

61 Estimates Hansard, 28 May 2013, p. 9.

62 Estimates Hansard, 28 May 2013, pp 11–12.

63 Estimate Hansard, 28 May 2013, pp 7–8, 11 and 13–17,

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approach to take when dealing with non-compliant behaviour ranging from low-level interventions, such as on-the-spot fines, to higher-level interventions, such as prosecutions. An operational management committee determines the intervention level that should be taken in each non-compliant incident.64

2.59 In continuing interest from previous estimates hearings, the committee discussed the Borthwick Review. Of particular interest were Mr Borthwick's comments in the review report regarding funding and research gaps. Mr Ian Thompson, First Assistant Secretary, explained that:

…fisheries research is very expensive and in a cost recovered world it really can only be charged to industry if industry is going to do some fishing. So the broad message that Mr Borthwick was pointing out was that there is a problem with exploratory fisheries. 65

2.60 The committee sought an update on the recorded catch in the following fisheries: the Coral Sea Fishery; and the Eastern Tuna and Billfish Fishery. Dr Nick Rayns, Executive Manager, told the committee that the Coral Sea Fishery operates at a relatively modest level with the recorded catch for 2012-13 (at 28 May 2013) was approximately 20 tonnes. In relation to the Eastern Tuna and Billfish Fishery, the committee heard that the recorded catch so far for the 2013 calendar year (at 28 May 2013) was approximately 59 tonnes. Dr Rayns advised the committee that these figures are provisional.66

2.61 The committee asked officers to provide an update on the Abel Tasman now that the two-year ban from fishing in Australian waters has commenced. Mr Thompson told the committee that under the Environment Protection and Biodiversity Conservation Act 1999, an expert panel will undertake a scientific assessment of the environmental impact and report their findings by 26 April 2015.67

2.62 The committee also discussed the following topics:

• the Commonwealth Scientific and Industrial Research Organisation's

work regarding fisheries and ecosystem management;

• illegal fishing in the Coral Sea Fishery;

• a Compensation for Detriment caused by Defective Administration claim made about the activities of AFMA in 2009;

• AFMA's complaint to the Press Council; and

• the stereo-video management plan. 68

64 Estimates Hansard, 28 May 2013, pp 18–19.

65 Estimates Hansard, 28 May 2013, p. 20.

66 Estimates Hansard, 28 May 2013, pp 24–26.

67 Estimates Hansard, 28 May 2013, p. 42.

68 Estimates Hansard, 28 May 2013, pp 21–22, 26–27, 29–30 and 37–39.

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Sustainable Resource Management

2.63 The committee discussed the Caring for Our Country program, and sought an update on the progress of separating the responsibilities from the joint team back to the department and the Department of Sustainability, Environment, Water, Populations and Communities (SEWPaC). Mr Thompson told the committee that:

…the two bits that are still jointly managed are Regions and Reef Rescue. That is because we are making payments to those bodies and we are trying to manage them for integrated outcomes. We have moved to what we now call, instead of joint delivery for the whole program, joint governance. We regularly meet with SEWPaC at senior and junior levels to discuss issues that arise and consider things like alignment of programs, how we are running programs and timing and those sorts of things. We also work on a common monitoring, evaluation and reporting framework and try to align things so that material coming in from community groups, regional groups and others can be in a common format and be used in a simple way. 69

2.64 The committee heard that in the 2013-14 Budget, the Community Landcare Grant Program had $75 million of its funding over the forward estimates reallocated to other agricultural programs. Mr Thompson explained that despite this reallocation, over the forward estimates a total of $179 million remains available to fund community Landcare grants, innovation grants, industry partnerships, broader community capacity building and information sharing.70

2.65 In continuing its interest from previous estimates hearings, the committee discussed the funding allocated to Australian Feral Camel Management Project. Ms Michelle Lauder, Assistant Secretary, told the committee that the project's budget of $19 million had been reduced to $16.6 million, as the program has been hindered by poor weather conditions and is set to conclude in December 2013.71 The committee heard that since the program commenced in 2009 and as at 28 May 2013, a total of 135 000 camels have been culled.72

2.66 The committee discussed the funding allocated to Caring for our Country regional facilitators. Officials told the committee that each of the 54 regions will receive funding of $150 000 in 2013-14 with the aim of increasing productivity through adopting sustainable, low-environmental impact management practices.73

69 Estimates Hansard, 28 May 2013, p. 44.

70 Estimates Hansard, 28 May 2013, pp 46–49.

71 Estimates Hansard, 28 May 2013, p. 56.

72 Estimates Hansard, 28 May 2013, p. 56

73 Estimates Hansard, 28 May 2013, p. 60.

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Australian Wool Innovation Limited

2.67 Mr Stuart McCullough, Chief Executive Officer, Australian Wool Innovation Limited (AWI) told the committee that Australia currently dominates the world's apparel wool market producing 250 million kilograms of apparel wool or 90 per cent of the market. In comparison, the committee heard New Zealand produces approximately 5 to 7 million kilograms and South Africa produces approximately 7 to 8 million kilograms of apparel wool.74

2.68 Officers told the committee that currently China purchases 80 per cent of the Australian wool clip compared to five years ago when they purchased only 60 per cent. Mr McCullough explained:

...The interesting part of that is that half of that 80 per cent is now being consumed in China. So, where once upon a time China used to be a wonderful converter of greasy wool to garments and they were shipped off, now they are still a wonderful converter of greasy wool to garments, but half of that volume is being consumed in China. That is where the opportunity lies.75

2.69 The committee asked AWI to outline its research activities. Mr McCullough told the committee that AWI has four main strategies:

(i) sheep health, welfare and productivity;

(ii) wool harvesting;

(iii) environmental climate change and carbon; and

(iv) education extension.76

Climate Change

2.70 The committee asked officials questions relating to the recently finalised Tasmanian Forests Agreement. Funding was provided to five Commonwealth government departments (including DAFF) to implement various activities as part of the agreement. Officials explained that the Tasmanian Government is responsible for developing program guidelines and administering funding, and that SEWPaC is the lead Commonwealth agency. On several occasions questions were referred to SEWPaC on the basis that it is taking the Commonwealth lead on the agreement.77

2.71 The committee asked for an update of the Regional Forest Agreements reviews being conducted in Tasmania, Western Australia, Victoria and New South Wales. Mr Paul McNamara, Assistant Secretary, explained that:

74 Estimates Hansard, 28 May 2013, p. 51.

75 Estimates Hansard, 28 May 2013, p. 50.

76 Estimates Hansard, 28 May 2013, p. 51.

77 Estimates Hansard, 28 May 2013, pp 71–74.

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…the opportunity is now there for us to move forward with a third five-yearly review of the Tasmanian RFA… we can also start developing the terms of the third five-yearly review in terms of appointing an independent reviewer… we have a signed scoping agreement now with Western Australia to undertake the first and second five-yearly reviews of the Western Australian RFA… the Australian government and Victorian government joint response is now back with the Victorian government and we expect that to be finalised fairly soon. Similarly, we are in the last stages of discussion with the New South Wales government on the second five-yearly review.78

2.72 The committee discussed the Rural Financial Counselling Service Program and the additional funding of $5.9 million to create 16 new positions, which were announced in the 2013-14 Budget. Ms Anna Wilcock, Acting Assistant Secretary, explained that the new rural financial counsellors will initially be located in Queensland, New South Wales, Victoria, Tasmania, South Australia and Western Australia.79

2.73 The committee also heard that a trial of the Rural Financial Counselling Service Program is currently underway in the Northern Territory. Ms Fran Freeman, First Assistant Secretary, explained that additional funding has been provided to the South Australian provider to deliver rural financial counselling services in the Northern Territory over the next 12 months.80

2.74 The committee asked whether the Rural Financial Counselling Service Program would be extended to provide services that address the emotional and personal relationship needs of communities. Ms Freeman explained that:

…what we are actually trying to do now is to make sure that the social services that are provided in rural and remote areas are actually able to go where they are needed most. One of the efforts that we have got as a linchpin…of the drought package is to do this better.81

2.75 The committee discussed the Farm Businesses Package, which forms part of the broader Farm Finance Program. The Minister for Agriculture, Fisheries and Forestry Senator the Hon Joe Ludwig told the committee that the Farm Businesses Package has been designed to provide $30 million annually over the next two years to each of the states and the Northern Territory. Concessional loans of up to $650 000 will be available to support eligible farm businesses restructure debt or fund projects to enhance productivity. 82 The committee heard that as at 28 May 2013, no state or

78 Estimates Hansard, 28 May 2013, p. 75.

79 Estimates Hansard, 28 May 2013, p. 77.

80 Estimates Hansard, 28 May 2013, pp 77–78.

81 Estimates Hansard, 28 May 2013, p. 81.

82 Estimates Hansard, 28 May 2013, pp 86–87.

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territory government had agreed in principle to sign up to the Farm Businesses Package.83

2.76 The committee also discussed the following topics:

• the Carbon Farming Futures Program;

• the Queensland Government's apparent rescinding of the South-East Queensland Forest Agreement; and

• illegal logging regulations. 84

Australian Egg Corporation Limited

2.77 The committee discussed the Hen Welfare Research, Development and Extension Forum held in early May 2013. Mr James Kellaway, Chief Executive Officer, told the committee that the forum was held so that stakeholders could discuss and provide input into the research and industry standards and guidelines. The forum was attended by the egg-producing community including research scientists, animal welfare agencies and government regulators.85

2.78 The committee sought an update in relation to what action is being taken regarding the free range labelling issue. Mr Kellaway explained that consumer research has been commissioned to identify shifts in buyer demands and concerns regarding the labelling of free range eggs.86

Grains Research and Development Corporation

2.79 The committee asked officials to outline the Grains Research and Development Corporation's (GRDC) budget position for 2012-13 and 2013-14. Mr John Harvey, Managing Director told the committee that for 2012-13, the GRDC is expected to record a surplus of $24 million. In relation to its budget for 2013-14, the GRDC is expected to record a deficit of $11.7 million.87

2.80 The committee heard that the GRDC invests across the following six themes:

(i) market requirements;

(ii) improve crop yields;

(iii) protecting the crop;

(iv) sustainable and profitable farming systems;

83 Estimates Hansard, 28 May 2013, p. 89.

84 Estimates Hansard, 28 May 2013, p. 99–103.

85 Estimates Hansard, 28 May 2013, pp 103–104.

86 Estimates Hansard, 28 May 2013, pp 104–105.

87 Estimates Hansard, 28 May 2013, pp 106–107.

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(v) maintaining the resource base; and

(vi) capacity building in the research and grower communities.88

Agricultural Productivity

2.81 The committee sought further information regarding the National Food Plan, which was released on 25 May 2013 by the Minister for Agriculture, Fisheries and Forestry, Senator the Hon Joe Ludwig. The following aspects of the National Food Plan were discussed:

• departmental and administered funding;

• timeframes for projects to be completed;

• grants program administration;

• Asian Food Markets Research Fund;

• the role of the Australian Food and Beverage Supplier Advocate;

• the branding of products exported;

• the community food initiative; and

• the establishment of a register for foreign owned agricultural land. 89

2.82 The committee discussed the outcomes from research and development funding. Mr Koval explained that the department and ABARES are in the process of reviewing the benefits and return on funding the research and development system. The committee heard that the department's eligible research and development programs will match funding of approximately $239 million in 2013-14.90

2.83 The committee asked whether the department had conducted any work in identifying agricultural industries that are experiencing labour shortages. Mr Michael Ryan, Acting Assistant Secretary, told the committee that:

…at this point in time there is no systematic work to capture that. We have been discussing it as part of the forward work program. You might be aware that NRAC, the National Rural Advisory Council, was recently doing some work on labour and skills. They are reporting to the minister soon… It is looking across a broad range of issues around labour. The particular focus of the study is on the capacity of the agricultural sector to plan their employment needs and undertake workforce planning, and part of that is looking at the range of sources for labour.91

88 Estimates Hansard, 28 May 2013, p. 107.

89 Estimates Hansard, 28 May 2013, pp 110–118 and 127–128.

90 Estimates Hansard, 28 May 2013, p. 120.

91 Estimates Hansard, 28 May 2013, p. 121.

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Trade and Market Access

2.84 The committee asked officials to provide an update regarding SPC Ardmona's application for emergency assistance. The Minister for Agriculture, Fisheries and Forestry Senator the Hon Joe Ludwig told the committee that he has referred the matter to the Minister for Trade and Competiveness, the Hon Dr Craig Emerson MP and the Minister for Industry and Innovation, the Hon Greg Combet AM MP.92

2.85 Ms Jo Evans, First Assistant Secretary, explained the process now that the minister has referred SPC Ardmona's request for emergency assistance. The decision lies with the Minister for Trade and Competiveness to determine if he agrees with SPC Ardmona's request for emergency assistance. A decision is then required from the Treasurer to refer it to the relevant authority, which in the case of SPC Ardmona's request it would be the Productivity Commission.93

2.86 The committee discussed overseas development assistance funding of the following programs for 2013-14:

• International Agricultural Cooperation Program;

• the Regional Animal Biosecurity Program; and

• the Improved Animal Welfare Program. 94

2.87 The committee sought a progress report on the status of the Australia-South Korea free trade agreement, as Mr Hansen stated during Meat and Livestock's appearance (paragraph 2.25 refers) that Australia is disadvantaged now that South

Korea has signed a free trade agreement with the United States of America. Ms Evans told the committee that with the election of President Park Geun-hye in February 2013, the South Korean administration has listed a free trade agreement with Australia as one of the President's foreign policy priorities.95

2.88 Ms Evans went on to state that:

…we are certainly very aware of the significant impact it is having on our beef industry, in particular. We have very high applied tariffs in Korea. For beef and offal they can be as high as 72 per cent. These are really significant numbers, and we are fully aware of the need to have an agreement with Korea that puts us both on a competitive footing with the US.96

92 Estimates Hansard, 28 May 2013, p. 123.

93 Estimates Hansard, 28 May 2013, p. 123.

94 Estimates Hansard, 28 May 2013, p. 133.

95 Estimates Hansard, 28 May 2013, p. 129.

96 Estimates Hansard, 28 May 2013, pp 129–130.

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2.89 The committee asked officials if they were concerned about not having a free trade agreement with South Korea, China and Japan. Mr Metcalfe explained that despite the absence of free trade agreements, over the last six months there has been an increase in boxed beef exports to China and Indonesia. He also stated that officials are working to maintain the market share and access of Australian agricultural products.97

2.90 The committee also discussed the following topics:

• improvements that can be made to the department's working relationship

with the Department of Foreign Affairs and Trade;

• the issue of the Samsung Techwin self-propelled howitzer; and

• the food standards in Japan. 98

97 Estimates Hansard, 28 May 2013, p. 131.

98 Estimates Hansard, 28 May 2013, pp 132 and 134–135.

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Chapter 3

Infrastructure and Transport portfolio

3.1 This chapter contains the key issues discussed during the 2013-14 Budget Estimates hearings for the Infrastructure and Transport portfolio. A complete list of all the topics discussed, and relevant Hansard page numbers, can be found at appendix 4.

Department of Infrastructure and Transport

3.2 The committee heard evidence from the Infrastructure and Transport Department (the department) on Wednesday, 29 May 2013. The hearing was conducted in the following order:

• Corporate Services;

• Infrastructure Australia; and Nation Building—Infrastructure

Investment;

• Australian Rail Track Corporation

• Office of the Inspector of Transport Security;

• Office of Transport Security;

• Aviation and Airports;

• Airservices Australia;

• Civil Aviation Safety Authority;

• Australian Transport Safety Bureau;

• Australian Maritime Safety Authority;

• Surface Transport Policy; and

• Policy and Research.

Corporate Services

3.3 The committee asked the department to provide an indication of when the government's response to the Senate Rural and Regional Affairs and Transport Reference Committee's Aviation Accident Investigations report, which was tabled in the Senate on 23 May 2013, will be provided. The committee is mindful that the three month time period for government responses, as outlined in Senate Resolution 42(1)1, will fall during the upcoming caretaker period.2

3.4 The Secretary, Mr Mike Mrdak told the committee:

1 Senate Standing Orders and other orders of the Senate, June 2009, Procedural Orders and Resolutions of the Senate of Continuing Effect 42.

2 Estimates Hansard, 29 May 2013, p. 4.

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…I am not in a position here today to give you an exact time frame as to when the minister and government will formally respond to the report… we are all very conscious of the fact that with the date of the federal election being proposed for 14 September and caretaker mode notionally starting on around 12 August that would fall within the normal three-month period. I can only say to you that the government is giving this serious and urgent consideration and looking to expedite its response as best it can.3

3.5 The committee sought an explanation from the department as to why answers to questions on notice from Additional Estimates were provided seven weeks late. Mr Mrdak advised the committee that the department did not meet its timeframes to provide draft responses to the minister's office.4

3.6 The committee discussed the rate of unscheduled absences amongst staff. Officers advised that the average rate of unscheduled absences to 30 June 2012 was 14 days per full-time equivalent employee. Mr Mrdak also explained that the rate of unscheduled absences is not uniform throughout the department, as 'there are certain areas of the department, which have higher rates of unscheduled absences than others'.5

3.7 The committee asked for an update on the appointments that have been made to the Moorebank Intermodal Board. Mr Wood, General Manager Rail and Roads, explained that the appointments have been made in two tranches. Firstly, five appointments were made in December 2012 and included Dr Kerry Schott, Chair; Ms Claire Filson, Director; Mr Ray Wilson, Director; Mr Stephen Williams, Director; and the Hon Andrew Fraser, Director. The committee were told the remaining four appointments will be announced in due course by the Minister for Infrastructure and Transport and the Minister for Finance and Deregulation.6

Nation Building—Infrastructure Investment and Infrastructure Australia

3.8 The committee sought an update on the Northern Territory Regional Roads Productivity Package, which was announced on 3 August 2012. Officers explained that they are awaiting detailed project proposals reports and cost estimates from the Northern Territory Government. Mr Jaggers, Executive Director, explained that the Northern Territory government will need to undertake significant planning 'between now and when those projects can start construction… [The] planning process we would expect for all projects would take at least a year or two'.7

3 Estimates Hansard, 29 May 2013, p. 4

4 Estimates Hansard, 29 May 2013, p. 5.

5 Estimates Hansard, 29 May 2013, p. 5.

6 Estimates Hansard, 29 May 2013, pp 9–11.

7 Estimates Hansard, 29 May 2013, pp 12–13.

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3.9 In continuing interest from previous estimates hearings, the committee sought an update on the following infrastructure projects:

• Bruce Highway;

• Roper Highway;

• Pacific Highway;

• upgrade of the Yeppen South floodplain;

• Mackay ring road;

• Haughton River Bridge upgrade;

• Hume Highway pricing trial;

• Bolivia Hill, New England Highway;

• Cross River Rail Project;

• Northbridge project;

• Swan Valley bypass;

• East-West road project;

• Townsville Port;

• West Connex project;

• Parramatta Epping rail link;

• Huon Highway;

• Summerleas Road;

• South Road upgrade;

• Midlands Highway;

• Brooker Highway;

• Brisbane Cross River Rail; and

• the Warrigal Road to Clyde upgrade. 8

3.10 The committee asked Infrastructure Australia to explain its budgetary allocation and staffing arrangements arising from the infrastructure finance reform measure contained in the Tax Laws Amendment (2013 Measures No.2) Bill 2013. Mr Deegan, Infrastructure Coordinator, told the committee that a resourcing plan is being developed to identify what staffing arrangements will be required once the legislation has been passed by Parliament.9

3.11 Officers told the committee that the Australian Government has contributed $4 million to the Western Australian government's light rail planning study which is

8 Estimates Hansard, 29 May 2013, pp 12–30, 54–64.

9 Estimates Hansard, 29 May 2013, pp 19–20.

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currently underway. Ms O'Connell, Deputy Secretary, advised the committee that there is a provision for the Federal government to allocate further funding for public transport projects in Perth.10

3.12 The committee discussed the National Urban Policy Conference held in Sydney on 16 and 17 May 2013, which was convened by the Australian Housing and Urban Research Institute in partnership with the Australian Government. Of particular interest was a presentation by Mr Lewis Atter, Global Head, Transport Economics and Policy, KPMG, who argued that individual infrastructure projects should be considered and evaluated within a broader context rather than as a single project.11 In response, Mr Deegan stated:

…without necessarily blowing the trumpet of my council, what we have sought to do is to take a broad approach to where we are going, so a national port strategy has been endorsed by the Council of Australian Governments, a national land freight strategy, which is working its way through, and a public transport or city transit national strategy that we are well advanced in… we think these individual projects should be considered as part of a broader network, and so these broader issues are considered at the same time rather than just project by project. Indeed, we think it is one of the flaws of the system to date.12

3.13 The committee discussed the funding commitments contained in the Nation Building 1 and 2 programs for 2012-13 and 2013-14, which included the following projects:

• Program Investment;

• Black Spot;

• Heavy Vehicle Safety and Productivity;

• Roads to Recovery;

• Improving Local Roads; and

• Improving the National Network. 13

3.14 The committee sought an overview of the feasibility planning for the PortLink project in Kalgoorlie, Western Australia. Mr Wood explained that the funding of the project is split between the Australian Government, which has provided of $2 million, and the Western Australian government, which has provided $5 million. The expected aims of the project are to:

10 Estimates Hansard, 29 May 2013, pp 21–22.

11 Estimates Hansard, 29 May 2013, p. 24.

12 Estimates Hansard, 29 May 2013, p. 24.

13 Estimates Hansard, 29 May 2013, pp 30–31.

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• investigate the feasibility and viability of an intermodal terminal at

Kalgoorlie;

• develop a plan to realign the freight rail system from the centre of Kalgoorlie to the outskirts;

• plan to upgrade the Goldfields Highway between Wiluna and Meekatharra;

• develop a cost-benefit analysis regarding a bypass of Kalgoorlie; and

• develop long-term plans for the road and rail corridors linking

Kalgoorlie and the goldfields to the Mid-West and to the Pilbara region.14

3.15 The committee also discussed the following topics:

• the Western Australian Government freight strategy;

• the national port strategy;

• tolls on motorways;

• the Regional Infrastructure Fund;

• the funding and viability of the Abt Railway in Tasmania;

and

• the electrification of the Gawler rail line. 15

Australian Rail Track Corporation

3.16 The committee discussed the Yarraman Creek railway crossing. Mr Fullerton, Chief Executive Officer, told the committee that a preliminary review has found that the culvert at Yarraman Creek needs to be replaced. The Australian Rail Track Corporation (ARTC) has a budget of $1 million in 2013-14 to engage engineers to design and construct a new culvert which addresses the current problem of flooding from debris blocking the culvert during times of heavy rainfall.16

3.17 The committee asked officers to explain the ARTC's advanced train management system. Mr Fullerton explained that the ARTC has been working in association with Lockheed Martin to develop the technology to be placed on-board trains, which can intervene and force locomotives to reduce its speed or stop completely. The system is being trialled on the South Australian rail network, with the aim to develop the technology's level of reliability before it is rolled out on every rail network in Australia.17

14 Estimates Hansard, 29 May 2013, p. 46.

15 Estimates Hansard, 29 May 2013, pp 25–26, 28, 40, 47 and 54–55.

16 Estimates Hansard, 29 May 2013, p. 59.

17 Estimates Hansard, 29 May 2013, pp 60–61.

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3.18 The committee also discussed the following topics:

• the Southern Sydney freight line;

• the duplication of freight lines; and

• the Hunter Valley Rail Corridor Air Quality Report. 18

Inspector of Transport Security and the Office of Transport Security

3.19 The committee sought an update on whether any assessments of offshore facilities had been conducted. Mr Dreezer, General Manager, told the committee that no assessments of offshore facilities have been made since 2007. Instead the department has been working with the industry to develop alternative audit and inspection regimes, which they envisage being completed by the end of the year. Mr Mrdak added that the challenge the department faces has been 'to find a workable solution that ensures compliance… recognises our limited resources and the difficulty of accessing a number of these facilities'.19

3.20 Officers told the committee that the department has established a government industry group through the oil and gas security forum to review the following issues:

• the size of offshore zones;

• communication with maritime users;

• the mutually agreed approach to safety and security;

• developing a pathway to prosecute should an incursion of a zone occur;

and

• the enforcement and compliance options. 20

3.21 Officers went on to explain that an agreement has been made between industry, the Office of Transport Security and relevant government agencies to run a series of exercises to test whether a one-stop shop approach would work in the event

of an incident, which includes using the Australian Government Crisis Coordination Centre and an 1800 number. Mr Retter, Executive Director, told the committee that:

…we are confident it [the one-stop shop] will work, but also to give us some efficacy in terms of the numbers and types of incidents that might require the Commonwealth to respond with the appropriate agency.21

3.22 The committee asked officers to provide an update on the arrangements being made in relation to the establishment of Australia's first fully private airport near Toowoomba. Mr Wilson, Deputy Secretary, explained that the airport 'will be required

18 Estimates Hansard, 29 May 2013, pp 62–64.

19 Estimates Hansard, 29 May 2013, p. 65.

20 Estimates Hansard, 29 May 2013, p. 67.

21 Estimates Hansard, 29 May 2013, p. 67.

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to meet the same level of standards, subject to what aviation services it provides, as any other regulated airport in Australia.22

Aviation and Airports

3.23 The committee discussed the management of federal airport leases specifically in relation to Brisbane Airport and the perceived lack of action regarding the development of a parallel runway. Mr Mrdak, explained that:

Over the last few years, the major development plan for the project has been lodged and approved, the various environmental assessment processes completed and works are underway on the development.23

3.24 The committee sought an update on Avalon Airport in relation to the construction of an international terminal. Mr Borthwick, Acting Executive Director, told the committee that the department and the Department of Defence are currently negotiating with Avalon Airport to amend the lease, which governs the airport's site. Once the lease has been amended the development process for the international terminal will commence.24

3.25 Officers also told the committee that Avalon Airport has initiated discussions with the department and Custom, Immigration and Quarantine (CIQ) agencies regarding the possible level of service that will be required. Mr Borthwick, explained that until the airport reaches an agreement with an airline to provide international services, it is difficult to determine what level of CIQ resources are required, as it will depend on the nature and type of services that need to be accommodated.25

3.26 The committee asked officers to explain why under the Adelaide Noise Amelioration Program the Saint Nicholas Greek Orthodox Church in Adelaide was allocated $5 million funding in the 2013-14 Budget. Mr Mrdak told the committee that an Australian Noise Exposure Index (ANEI) is produced annually at Adelaide Airport, which models noise exposure over a period of time. He went on to explain that a review of the 2011 ANEI identified the Saint Nicholas Greek Orthodox Church as being eligible for the Adelaide Noise Amelioration Program due to the growth of air traffic and the expansion of the noise contour.26

3.27 Mr Wilson provided the following clarification in relation to the funding allocated under the Adelaide Noise Amelioration Program for the Saint Nicholas Greek Orthodox Church:

22 Estimates Hansard, 29 May 2013, p. 68.

23 Estimates Hansard, 29 May 2013, pp 69–71.

24 Estimates Hansard, 29 May 2013, p. 71.

25 Estimates Hansard, 29 May 2013, p. 72.

26 Estimates Hansard, 29 May 2013, pp 74–75.

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…the church will not be receiving the funding. The department is receiving the funding and will contract the work on behalf of the church…it is not the case that we are granting the church $5 million. The works will be undertaken under contract to the department.27

3.28 In continuing its interest from previous estimates hearings, the National Airports Safeguarding framework was discussed. The committee were interested in the extent of support within the Standing Council on Transport and Infrastructure regarding the National Airport Safeguarding Framework Guideline A proposed alternate noise metrics. Mr Mrdak explained that Western Australia and New South Wales have indicated their opposition for Guideline A to be used for strategic planning purposes.28

Airservices Australia

3.29 The committee heard that Airservices Australia in conjunction with the Department of Defence will procure and implement a new integrated air traffic management platform. Ms Staib, Chief Executive Officer, told the committee that a

memorandum of cooperation has been signed with the Department of Defence, as they work together to finalise the request for tender, which will be released to industry by the end of the current financial year.29

3.30 Officers told the committee that Airservices Australia was recently ranked second by the Civil Air Navigation Service Organisation (CANSO), which undertakes an international benchmarking study of air navigation service providers' safety management systems.30 Annually CANSO compares 28 countries against the following metrics:

• loss of separation rates;

• runway incursion statistics; and

• the maturity of the Safety Management System. 31

3.31 The committee asked officers to outline the findings of the independent review of air traffic controller numbers carried out by Nav Canada.32 Ms Staib told the committee the report found that Airservices Australia had the appropriate number of

27 Estimates Hansard, 29 May 2013, p. 76.

28 Estimates Hansard, 29 May 2013, pp 78–80.

29 Estimates Hansard, 29 May 2013, p. 83.

30 Estimates Hansard, 29 May 2013, pp 83–84.

31 Civil Air Navigation Services Organisation, 'Airservices among world's best – CANSO Benchmarking Study', media release 8 May 2013, http://www.canso.org/cms/showpage.aspx?id=4955 (accessed 10 June 2013).

32 Nav Canada provides air traffic control, flight information, weather briefings, aeronautical information and electronic aids to navigation for aircraft in Canadian domestic airspace and international airspace assigned to Canada.

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air traffic controllers but it could work more flexibly and smarter in its future workforce planning.33

3.32 In continuing its interest from previous estimates hearings, the committee sought an update on the progress of the Perth Airport strategic plan and roadmap. The standard terminal arrival speeds initiative was implemented in March 2013. Mr Hartfield explained how the standard terminal arrival speeds works:

…all the aircraft flying in are actually flying at standardised speeds if they are the same type of aircraft, which gives a certain level of predictability and consistency for the controllers…aimed at minimising the time aircraft either spend on the runway or closing the gap between aircraft so that we can fit more on.34

3.33 The committee also discussed the following topics:

• opening new services at Broome and Port Headland;

• fatigue management of air traffic controllers;

• reoccurring training requirements;

• information sharing with other air traffic control agencies; and

• the process of handling noise complaints. 35

Civil Aviation Safety Authority

3.34 The committee sought an explanation regarding the apparent increase in the number of senior management positions since 2006. Mr McCormick, Director of Aviation Safety, explained 'we are shifting the focus to the front end of the organisation as best we can'.36

3.35 The committee raised the perceived fear within the aviation industry of retribution for speaking out against the Civil Aviation Safety Authority (CASA). Mr McCormick, told the committee that he was:

…at a lost to understand this… no one has brought anything to me or to my industry complaints commissioner to complain about bullying or harassment.37

3.36 He also gave the following guarantee that 'if anybody threatens retribution from within CASA or carries out retribution we will take action'.38

33 Estimates Hansard, 29 May 2013, p. 85.

34 Estimates Hansard, 29 May 2013, p. 91.

35 Estimates Hansard, 29 May 2013, pp 86–91 and 93–94.

36 Estimate Hansard, 29 May 2013, p. 95.

37 Estimates Hansard, 29 May 2013, p. 102.

38 Estimates Hansard, 29 May 2013, p. 102.

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3.37 The committee also discussed the following topics:

• Robinson 44 helicopters;

• the development of CASA's aviation safety surveillance tool Sky Sentinel;

• incidents of electronic devices being used on aircraft;

• regulation of unmanned aerial vehicles;

• fatigue management regulations; and

• CASA's taxi expenditure. 39

Australian Transport Safety Bureau

3.38 The committee sought an explanation from officers in relation to the Australian Transport Safety Bureau's (ATSB) budget position and the reduction in funding for 2013-14 and the forward estimates. Mr Dolan, Chief Commissioner, told the committee that:

…the only response given in the construct of the budget of our organisation to those sorts of financial pressures is to reduce our staffing over time. That means that we have to be very focused on what matters we choose to investigate in the future, conscious of the risk of missing something important to safety, and in some cases we may need to constrain an investigation because of the call on our resources.40

3.39 Officers told the committee that due to the recent rail reforms, the ATSB has acquired overall national responsibility for rail investigations. Mr Dolan expects that the increase in responsibility will also increase the ATSB's revenue source for this year, as the costs of investigations will be recovered directly from states.41

3.40 Officers were asked to comment on the findings from the committee's Aviation Accident Investigations report, specifically, if they had decided to reopen the investigation into the ditching of Pel-Air and if they will retrieve the cockpit voice recorder. Mr Dolan told the committee that:

The recommendations that came out of the committee's report as they referred to ATSB as an independent agency will be reviewed by the commission of the ATSB…so it is not just a decision for me but for the three of us acting collectively in accordance with our legal responsibility.42

39 Estimates Hansard, 29 May 2013, pp 96–100 and 103–108.

40 Estimates Hansard, 29 May 2013, p. 110.

41 Estimates Hansard, 29 May 2013, p. 111.

42 Estimates Hansard, 29 May 2013, p.114.

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Australian Maritime Safety Authority

3.41 The committee discussed Marine Orders Part 3, which outlines the eligibility requirements for the Australian Maritime Safety Authority (AMSA) Certificates of Competency. Officers explained that AMSA certificates are internationally recognised under the Standards of Training, Certification and Watchkeeping (STCW) conventions. Certificates that are issued by Australian states are not internationally recognised unless AMSA has provided formal endorsement that it meets the STCW conventions.43

3.42 Mr Kinley, Acting Chief Executive Officer, went on to explain that:

…we have not always issued those endorsements to every state certificate because some of the certificates…issued under previous requirements have not fully complied with STCW requirements. One of the things that we are hoping to see…is the brining of all of the certificates issued under the new national system to a level where we will be able to give them the equivalent endorsements under the STCW convention.44

3.43 The committee sought information from officers regarding AMSA's role in regulating vessels that transport livestock. Officers explained that AMSA must issue, under Marine Order 43, compliance certificates for any ship carrying livestock from Australia which is in addition to a vessel's seaworthiness. AMSA have commenced a review of Marine Order 43 and are currently consulting with the industry regarding any proposed amendments to the order. The review is expected to be completed within six months.45

Surface Transport Policy

3.44 The committee sought an update on the new shipping reforms, which came into effect on 1 July 2012. Ms Zielke, Executive Director, advised that:

…the licencing framework…is progressing well at this stage. It is still early days though in relation to the reforms… we have also received inquiries in relation to access to the tax incentives that will come into effect at the end of the financial year… another part of the reforms was the establishment of Maritime Workforce Development Forum. Over the last few months the forum has produced a census in relation to the maritime skills…and an initial workforce development strategy has also been released.46

3.45 The committee also discussed the following topics:

• transitional general shipping licences;

43 Estimates Hansard, 29 May 2013, p. 116.

44 Estimates Hansard, 29 May 2013, p. 117.

45 Estimates Hansard, 29 May 2013, pp 118–119.

46 Estimates Hansard, 29 May 2013, p. 121.

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• crew manning levels of ships; and

• the Australian Sea Freight 2010-11. 47

Policy and Research

3.46 The committee discussed the Keys 2 Drive Program in relation to the funding allocated in 2013-14. Ms O'Connell explained that the program, which commenced in 2007-08, will conclude at the end of 2013-14. The committee heard that the program to April 2013, has had nearly 1200 driving instructors accredited to deliver the program with almost 170 000 free lessons provided to learner drivers.48

3.47 The committee asked whether the merger of the Major Cities Unit (MCU) into the Policy and Research division would affect their mission, role, functions or performance. Mr Collett, General Manager, explained that in the short-term MCU did not envisage any significant changes to their role. Rather the move provides additional Senior Executive Service officers to support MCU's work.49

3.48 The committee discussed in relation to the decision by the Western Australian government to develop a marina at Point Peron, the role of the National Urban Policy to provide a level of protection to local communities. Mr Collett explained that the National Urban Policy considers issues in a citywide context rather than on a project-by-project basis.50

3.49 The committee sought an update on the number of urban public transport projects that were announced as a part of the Budget. Mr Mrdak told the committee that the Budget provided funding for two major metropolitan rail projects, which are the Brisbane Cross River Rail project and Perth City Link project.51

3.50 The committee also discussed the following topics:

• project assessments guidelines;

• the COAG Reform Council Capital City Strategic Planning Systems Report;

• the South Australian Government announcement of the structure plan for the Playford Growth Area;

• the Aviation White Paper; and

• the development and implementation of the NASAG reforms. 52

47 Estimates Hansard, 29 May 2013, pp 122–126.

48 Estimates Hansard, 29 May 2013, p. 127.

49 Estimates Hansard, 29 May 2013, pp 127–128.

50 Estimates Hansard, 29 May 2013, p. 128.

51 Estimates Hansard, 29 May 2013, p. 129.

52 Estimates Hansard, 29 May 2013, pp 130–136.

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Chapter 4

Regional Australia, Local Government, Arts and Sport portfolio

4.1 This chapter contains the key issues discussed during the 2013-14 Budget Estimates hearings for the Regional Australia, Local Government, Arts and Sport portfolio. A complete list of all the topics discussed, and relevant page numbers, can be found at appendix 5.

Department of Regional Australia, Local Government, Arts and Sport

4.2 The committee heard evidence from the department on Thursday, 30 May 2013. The hearing was conducted in the following order:

• Corporate Services;

• Office for Sport; and Australian Sports Anti-Doping Authority;

• Australian Sports Commission;

• Office for the Arts; and Australia Council for the Arts;

• National Film and Sound Archive; National Gallery of Australia; and

Screen Australia;

• Regional Development;

• Local Government; and

• Services to Territories.

Corporate Services

4.3 The committee sought an explanation regarding why the department's answers to questions on notice from Additional Estimates of February 2013 were provided as late as 1 pm on 29 May 2013.1 Ms Glenys Beauchamp, Secretary, apologised to the committee and stated:

…we have had an excellent record of previous questions on notice. We had over 396 questions on notice for the portfolio, and that does not even include all the subparts. So we had quite a large number of questions on notice… There were a number of external factors that impacted on that

delivery.2

4.4 The committee discussed the average number of unscheduled absences taken by staff in 2012-13. Mr Jaime Clout, Chief Operating Officer, told the committee that

1 Estimates Hansard, 30 May 2013, pp 4, 13–14, 36–38, 43 and 107.

2 Estimates Hansard, 30 May 2013, p. 13.

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the department's current tracking suggests a result between 10.5 and 11 days per full-time equivalent staff member.3

4.5 The committee asked for an update to a range of staffing items including:

• the number of redundancies offered in 2012-13;

• staff survey;

• the average cost of a staff member;

• the average salary cost;

• the breakdown of staff working in the Local Government division;

• the number of staff working on Constitutional Recognition of Local

Government Taskforce;

• fraudulent behaviour by current and former staff;

• misuse of departmental credit cards; and

• the number of staff located outside of Canberra. 4

4.6 In continuing its interest from previous estimates hearings, the committee discussed the department's building lease arrangements. Of particular interest to the committee was the decision to sign a $70 million 12-year lease. Mr Clout explained that:

…by taking a 12-year lease we secured a rate of $309 a square metre, which is a significant saving on our previous lease of about 30 per cent…this property was also very attractive to us because it came fully fitted out.5

Office for Sport, Australian Sports Anti-Doping Authority and Australian Sports Commission

4.7 The committee discussed the Illicit Drugs In Sport Program and the reduction of funding, which was announced in the 2012-13 Mid-Year Economic Fiscal Outlook (MYEFO). Mr Richard Eccles, Deputy Secretary stated that the reduction in funding recognised that each of the major sporting codes has its own illicit drug policies.6

4.8 The committee inquired about the level of consultation that was undertaken with the sports before the funding cut for the Illicit Drugs In Sport Program was announced in MYEFO in October 2012. Mr Eccles, explained:

There was general discussion around their entire integrity work programs. There was no specific consultation per se about the specific cuts. There

3 Estimates Hansard, 30 May 2013, p.4.

4 Estimates Hansard, 30 May 2013, pp 4–5 and 9–10.

5 Estimates Hansard, 30 May 2013, p. 10.

6 Estimates Hansard, 30 May 2013, p. 15.

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were discussions that took place… But there was no formalised consultation process. I did hold informal discussions with a couple of the codes to understand exactly what the nature of their business is. But there was no formal consultation.7

4.9 The committee sought an update on the number of sports currently subject to investigations being conducted by the Australian Sports Anti-Doping Authority (ASADA) as a result of the Australian Crime Commission (ACC) Report into Organised Crime and Drugs in Sport (ACC Report). Ms Aurora Andruska, ASADA's Chief Executive Officer, told the committee that there are two sports subject to investigations, namely the Australian Football League and the National Rugby League.8

4.10 Ms Andruska provided the committee with an outline of the size and scope of ASADA's investigation stemming from the ACC Report, stating:

…what we have done to date. What the ACC did was their investigation and we were provided with information. Our task in an investigation is to convert information into evidence. So from ASADA's perspective our investigation started in February [2013] and we are under four months into that investigation. To date we have interviewed 113 individuals. That ranges from third parties and support staff to players. Those interviews have taken between 1½ and 8½ hours in duration each. We have examined over 50,000 documents that we have had access to.9

4.11 The committee asked officers to outline the process ASADA undertakes when conducting investigations. Ms Elen Perdikogiannis, General Manager, explained that:

The way that the process works is that ASADA investigators gather their information, conduct their interviews, and examine the documentary evidence. That then is given to our legal area, who prepare what is known as a case pack, for consideration by the Anti-Doping Rule Violation Panel. Its role is to determine whether or not it is possible that the person, the athlete or the athlete's support person concerned, has committed an anti-doping rule violation. Once the panel makes that finding…the ASADA CEO…notify the sport concerned. Then it is the role of the sport to take forward findings from the panel and to enforce those findings, as breaches of its anti-doping policy.10

4.12 The committee inquired into the funding of the Asian Cup in 2015. Mr Eccles advised that the Australian Government is providing funding in two separate tranches:

(i) the Australian Government contributed $31 million to the local organising committee; and

7 Estimates Hansard, 30 May 2013, p. 16.

8 Estimates Hansard, 30 May 2013, p. 18.

9 Estimates Hansard, 30 May 2013, p. 18.

10 Estimates Hansard, 30 May 2013, pp 20–21.

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(ii) providing funding to the Australian Federal Police, the Department of Immigration and Citizenships and IP Australia.11

4.13 The committee also discussed the following topics:

• Smith Review into the sustainability of football in Australia;

• funding and hosting the 2015 Cricket World Cup; and

• the 1988 Senate Standing Committee on Environment, Recreation and

Arts inquiry: Drugs in Sport Inquiry: Report on the Harassment of a Witness.12

Office for the Arts and the Australia Council for the Arts

4.14 The committee discussed the Resale Royalty Scheme, specifically, the scheme's funding and cost recovery design. The Resale Royalty Scheme received funding of $2.25 million in the 2008-09 Budget, which over time was intended to be recovered by scheme. Officials told the committee that as of April 2013, $1.45 million in royalties had been paid since the scheme's introduction in June 2010. Ms Beauchamp added that the department is going to conduct a post-implementation review of the scheme.13 On 5 June 2013 the Minister for the Arts the Hon Tony Burke MP announced a review of the Resale Royalty Scheme, which 'will evaluate whether the legislation and its associated scheme are meeting the original objectives of providing artists with proper recognition for their art, and an additional source of income'.14

4.15 The committee discussed the process for implementing the National Cultural Policy. Ms Beauchamp advised that the Office for the Arts is currently developing, in consultation with the other agencies, an implementation plan to monitor progress against budget appropriation measures.15

4.16 The committee enquired why the word 'digital' appears 91 times in the National Cultural Policy compared to the words: 'ballet' appears five times; 'literature' appears six times; 'symphony orchestra' appears three times; 'opera' appears 10 times; and 'dance' appears 14 times. Senator the Hon Kate Lundy, representing the Minister for the Arts explained that:

11 Estimates Hansard, 30 May 2013, pp 24–25 and 27–28.

12 Estimates Hansard, 30 May 2013, pp 26, 29–30 and 32–33.

13 Estimates Hansard, 30 May 2013, p. 38.

14 The Hon Tony Burke MP, Minister for Arts, 'Review of Resale Royalty Scheme, Media release, 5 June 2013. http://ministers.regional.gov.au/honourable-tony-burke-mp/media-releases/2013/review-resale-royalty-scheme (accessed 17 June 2013).

15 Estimates Hansard, 30 May 2013, p. 39.

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…in a digital age…each of the art forms and performance arts that you have described, there is a digital dimension to their work in this current day and age, in the 21st century.16

4.17 Mr Tony Grybowski, Chief Executive Officer added that it’s the Australia Council's role to ensure that 'there is a high level of digital literacy in our current artists and arts organisations'.17

4.18 The committee asked officials to explain how the contemporary arts sector is funded. Mr Grybowski explained that the Arts Organisation Division of the Australia Council funds over 170 arts organisations for operational purposes which enable artistic directors to curate a program.18

4.19 The committee sought further information into the funding provided by Australia Council to the Australian Centre for Contemporary Arts' controversial production Goldene Bend'er. Mr Grybowski advised the committee that the Australian Centre for Contemporary Arts 'is an independent organisation… [W]hat the Australia Council stands for is freedom of expression of artistic practice'.19

National Film and Sound Archive, National Gallery of Australia and Screen Australia

4.20 The committee asked officials from the National Film and Sound Archive to clarify an answer to question on notice from Supplementary Budget Estimates October 2012 regarding an approximate increase of 15 per cent to their electricity spend. Mr Noel Florian, Chief Financial Officer and Manager of Corporate Operations, advised that the National Film and Sound Archive does not received any additional funding to cover increasing electricity expenses and has rather focused on reducing the following areas of expenditure: consultancies, travel, hospitality and the number of actual and contracting staff.20

4.21 The committee discussed the purchase of the sculpture Shiva as Lord of the Dance. Dr Ron Radford, Director, advised that the sculpture was purchased from Mr Subhash Kapoor, a New York art dealer. It is alleged that Mr Kapoor is currently facing charges in India for possessing stolen property.21 Dr Radford advised that he is confident that the sculpture was not stolen and the National Gallery of Australia was assisting law enforcement authorities with their investigations.22

16 Estimates Hansard, 30 May 2013, p. 40.

17 Estimates Hansard, 30 May 2013, p. 40.

18 Estimates Hansard, 30 May 2013, p. 45.

19 Estimates Hansard, 30 May 2013, p. 45.

20 Estimate Hansard, 30 May 2013, pp 48–49.

21 Estimates Hansard, 30 May 2013, p. 49

22 Estimates Hansard, 30 May 2013, p. 49.

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4.22 The committee asked Screen Australia officials to explain why the Australian Government provide financial support to the Australian Interactive Games Fund. Dr Ruth Hartley, Chief Executive Officer, told the committee that:

It is clear that the private sector will not support it. The games industry in Australia used to be a fee-for-service industry and at that point it was entirely private sector. Largely, as a result of the dollar, there is almost no fee-for-service work left in Australia. It is a matter of going back and becoming an intellectual property based industry.23

4.23 The committee dismissed the following Arts agencies without questioning due to timing constraints:

• National Museum of Australia;

• Creative Partnerships Australia;

• National Library of Australia; and

• National Portrait Gallery. 24

Regional Development

4.24 The committee asked officials to outline the expenditure from the Regional Development Australia Fund for 2012-13. Ms Beauchamp advised that as at the end of April 2013, the department had spent approximately $62 million.25

4.25 The committee asked officials to explain why the Regional Australia Institute was set up as a separate company. Ms Beauchamp told the committee it was the decision of the previous minister, who was of the view that the Regional Australia Institute would be more successful and sustainable in attracting funding and entering partnerships if it was set up separate to the department.26

4.26 The committee discussed with officials to outline the Northern Australian Sustainable Futures program. Mr Andrew Dickson, Acting Assistant Secretary, explained that the program was established in 2010 in response to the recommendations from the Northern Australia Land and Water Task Force. The committee heard that the program operates in collaboration with the governments of the Northern Territory, Queensland and Western Australia and seeks to address issues that are critically important to the long-term sustainability of the region.27

4.27 The committee sought an update on the North Queensland Irrigated Agriculture Strategy. Mr Dickson told the committee that the department, the

23 Estimates Hansard, 30 May 2013, p. 51.

24 Estimates Hansard, 30 May 2013, p. 51.

25 Estimates Hansard, 30 May 2013, p. 9.

26 Estimates Hansard, 30 May 2013, pp 10–11.

27 Estimates Hansard, 30 May 2013, pp. 52–53.

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Commonwealth Scientific and Industrial Research Organisation, and the Queensland Department of Agriculture, Fisheries and Forestry have collaborated on the strategy, which is expected to be completed by December 2013. The strategy focuses specifically on modelling the Gilbert and Flinders rivers to identify how much water can be sustainably extracted from the rivers to support commercial agricultural development.28

4.28 The committee asked officials to advise when the individual funding for each of the Regional Development Australia committees (RDAs) will be announced. Mr Simon Atkinson, First Assistant Secretary advised that the funding agreements

were being finalised and it is expected that the payments to RDAs will commence at the start of July 2013.29

4.29 The committee asked officials to provide an update in relation to the Community Infrastructure Grants program. Mr Gordon McCormack, Assistant Secretary, provided an update on the following projects:

• Northern Territory BMX Association;

• Jingili BMX Club upgrade;

• Cairns District Junior Jones Park Rugby League;

• the City of Greater Geelong;

• Belmont Lions Netball Club;

• Colac Otway Shire and Sporting Precinct;

• Kempsey Airport upgrade;

• Ryde Riverwalk;

• Port Stephens Council;

• Birubi Point Surf Lifesaving Club;

• Mackay Regional Council and Junior Soccer Club;

• Monbulk Soccer Club;

• Taree road maintenance;

• Bucketts Way upgrade; and

• Port Macquarie Indoor Sports Complex. 30

4.30 The committee enquired into the level of support and assistance that is provided to the RDAs. Ms Foster told the committee that:

28 Estimates Hansard, 30 May 2013, pp 54–55.

29 Estimates Hansard, 30 May 2013, p. 57.

30 Estimates Hansard, 30 May 2013, pp 59–60.

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The support ranges from information flows, so ensuring that the RDAs have access to grants programs that are being announced across the government, information on major initiatives to share with their communities that might be of benefit to them to obviously the funding that we provide for their set-up and operation, and from time to time specific funding to carry out particular initiatives. We provide them with regular newsletters and with support on administrative issues, if they are having challenges with their staffing, for example. So, that is a pretty broad range of support.31

4.31 In continuing its interest from previous estimates hearings, the committee sought an update in relation to the Unity Housing Affordable Housing Project. Mr McCormack told the committee that the second payment for milestone 2 of

$1 million is due to be paid on 15 September 2013 and is subject to the following conditions being met:

• 25 per cent completion of the project;

• all statutory approvals are obtained; and

• evidence of contributions being secure. 32

4.32 The committee also discussed the following topics:

• funding allocated to round 3 of RDAs;

• the establishment of an RDA committee in western Sydney;

• funding for the Dunalley Community Hall;

• the West Arnhem Land Fire Abatement Scheme;

• progress update on the Wakefield Regional Water Supply project; and

• the Murray-Darling Basin Regional Diversification Program. 33

Local Government

4.33 The committee discussed at length the announcement by the Prime Minister the Hon Julia Gillard MP, the Minister for Regional Development and Local Government the Hon Anthony Albanese MP and the Attorney General the Hon Mark Dreyfus QC MP to hold a referendum to change the Constitution to recognise local government. The referendum will coincide with the Federal election on 14 September 2013.34

31 Estimates Hansard, 30 May 2013, p. 72.

32 Estimates Hansard, 30 May 2013, p. 77.

33 Estimates Hansard, 30 May 2013, pp 61–65, 67–69, 75, and 77–82.

34 The Hon Julia Gillard MP, Prime Minister of Australia, the Hon Anthony Albanese MP, Minister for Regional Development and Local Government, and the Hon Mark Dreyfus QC MP, Attorney General, 'Transcript of Joint Press Conference', Media Release, 9 May 2013 www.pm.gov.au/press-office/transcript-joint-press-conference-52 (accessed 17 June 2013).

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4.34 The committee heard that currently there is no constitutional provision for the Commonwealth government to provide funding directly to local governments. The proposed amendment to Section 96 of the Constitution would make a specific

provision for the Commonwealth government granting financial assistance to local government bodies.35

4.35 The committee discussed the work of the Constitutional Recognition of Local Government Taskforce. Ms Beauchamp explained that the department was allocated $10 million in the 2013-14 Budget to develop a civics campaign to inform voters of the referendum.36

4.36 The committee also discussed the following topics related to the referendum for constitutional recognition of local governments:

• the proposed wording of the amendment to Section 96 of the

Constitution;

• the ongoing negotiations with state governments regarding the wording of the proposed wording of the bill;

• the findings of the Expert Panel on Constitutional Recognition of Local

Government;

• the process for forming the 'yes' and 'no' case;

• funding of the 'yes' and 'no cases; and

• the department's contact with the Australian Local Government

Association.37

Services to Territories

4.37 The committee sought clarification to an answer to a question on notice from Additional Estimates regarding Air New Zealand's contract to provide air services to the Norfolk Island. Ms Fleming, First Assistant Secretary, told the committee that the department will be shortly going out to re-tender air services to Norfolk Island and did not want to signal to the market the level of subsidy on offer from the Australian government.38

4.38 The committee asked officials to explain why the Australian government does not provide funding to Norfolk Island for the purpose of marketing and tourism development. Ms Fleming explained that in relation to tourism development it is

considered to be a responsibility of the Norfolk Island government.39

35 Estimates Hansard, 30 May 2013, pp 85–86.

36 Estimates Hansard, 30 May 2013, pp 6–7.

37 Estimates Hansard, 30 May 2013, pp 87–106.

38 Estimates Hansard, 30 May 2013, p. 107.

39 Estimates Hansard, 30 May 2013, p. 107.

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4.39 The committee sought an update in relation to the Norfolk Island Reform Package. Ms Fleming explained that:

We will be talking to the Norfolk Island government about the next funding agreement. As part of that funding agreement, we will be negotiating with them some further ongoing reforms and changes to the structure of their economy where we can look at things. We were also provided with a further million dollars in the budget for the 2013-14 year to cover a range of support activities for the government around enhancements in governance. That might include performance audits and financial statement audits, support in family and child services, support for apprenticeship schemes— areas in which we can assist the economy and the productivity of Norfolk Island. 40

4.40 The committee also discussed the following topics in relation to Norfolk Island:

• extending tax and social security reforms;

• establishing a community food bank;

• ongoing emergency funding;

• the Commonwealth funded review of Norfolk Island's child and family

health services; and

• the resealing of Norfolk Island airport runway. 41

Senator Glenn Sterle Chair

40 Estimate Hansard, 30 May 2013, p. 112.

41 Estimates Hansard, 30 May 2013, pp 112–115.

276

Appendix 1

Tabled of contents to proof Hansard transcripts

Budget Estimates 2013-14

Agriculture, Fisheries and Forestry portfolio

Monday 27 May 2013

Tuesday 28 May 2013

Infrastructure and Transport portfolio

Wednesday 29 May 2013

Regional Australia, Local Government, Arts and Sport portfolio

Thursday 30 May 2013

277

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Monday 27 May 2013

Agriculture, Fisheries and Forestry portfolio

Hansard page

In attendance 1

Finance and Business Support, Government, Information Services and People and Service Delivery Divisions 4

Interim Inspector-General of Biosecurity 17

Office of the Chief Veterinary Officer 17

Biosecurity—Animal 17

Live Animal Exports Division 17

Animal Health Australia 17

Meat and Livestock Australia 46

LiveCorp 53

Border Compliance 55

Post Entry Quarantine Program 55

Biosecurity—Plant 79

Biosecurity—Food 92

Biosecurity—Policy 102

Rural Industries Research and Development Corporation 113

Australian Bureau of Agricultural and Resource Economics and Sciences 114

278

Page 51

Tuesday 28 May 2013

Agriculture, Fisheries and Forestry portfolio

Hansard page

In attendance 1

Australian Pesticides and Veterinary Medicines Authority 4

Australian Fisheries Management Authority 18

Sustainable Resource Management 44 & 55

Australian Wool Innovation 49

Climate Change 71

Australian Egg Corporation Limited 103

Grains Research and Development Corporation 106

Agricultural Productivity 110

Trade and Market Access 128

279

Page 52

Wednesday 29 May 2013

Infrastructure and Transport portfolio

Hansard page

In attendance 1

Corporate Services 3

Infrastructure Australia 11

Nation Building—Infrastructure Investment 11

Australian Rail Track Corporation 59

Office of Transport Security 65

Inspector of Transport Security 65

Aviation and Airports 69

Airservices Australia 82

Civil Aviation Safety Authority 94

Australian Transport Safety Bureau 110

Australian Maritime Safety Authority 116

Surface Transport Policy 120

Policy and Research 126

280

Page 53

Thursday 30 May 2013

Regional Australia, Local Government, Arts and Sport portfolio

Hansard page

In attendance 1

Corporate Services 3

Office for Sport 13

Australian Sports Anti-Doping Authority 13

Australian Sports Commission 13

Australian Sports Foundation Limited 13

Office for the Arts 35 & 43

Australia Council 39

National Film and Sound Archive of Australia 48

National Gallery of Australia 49

Screen Australia 51

Regional Strategy and Coordination Division 52 & 66

Local Government, Territories and Regional Programs Division 84 & 87

Services to Territories 107

281

282

Appendix 2

Tabled Documents

Agriculture, Fisheries and Forestry portfolio

Documents tabled at hearing on Monday, 27 and Tuesday, 28 May 2013

1. Opening statement, tabled by the Minister for Agriculture, Fisheries and Forestry the Hon. Joe Ludwig, 27 May 2013.

2. Opening statement, tabled by Mr Andrew Metcalfe AO, Secretary, Department of Agriculture, Fisheries and Forestry, 27 May 2013.

3. 'Fees hike may stop exports', The Advocate, 25 May 2013, tabled by Senator Colbeck, 27 May 2013.

4. 'Cruel truths hit home as cattle export ban, bushfires and drought wreak devastating toll', The Weekend Australian, 25 May 2013, p.1 and 4–5, tabled by Senator Back, 27 May 2013.

5. Industry Equalisation Reserves movement and balances, tabled by Mr Darren Schaffer, Chief Financial Officer, Finance and Business Support, Governance, Information Services and People and Service Delivery, Department of Agriculture, Fisheries and Forestry, 27 May 2013

6. Caring for our Country – regional allocations, tabled by Mr Ian Thompson, First Assistant Secretary, Sustainable Resource Management, Department of Agriculture, Fisheries and Forestry, 28 May 2013.

7. Letter to the Minister for Agriculture and Food Security the Hon Peter Walsh MP regarding the concessional finance available under the Farm Finance Package, tabled by the Minister for Agriculture, Fisheries and Forestry Senator the Hon Joe Ludwig, 28 May 2013

8. Summary of the funding of new initiatives in the National Food Plan, tabled by Mr Andrew Metcalfe AO, Secretary, Department of Agriculture, Fisheries and Forestry, 28 May 2013

9. Farm Finance departmental costs, tabled by Mr Mark Tucker, Deputy Secretary, Department of Agriculture, Fisheries and Forestry, 28 May 2013.

283

Page 56

Infrastructure and Transport portfolio

Document tabled at hearing on Wednesday, 29 May 2013

1. Correspondence regarding the National Airports Safeguarding Framework Paper for the 4th SCoTI Meeting, tabled by Senator Humphries, 29 May 2013.

2. Correspondence from Airservices Australia regarding the Australian Transport Safety Bureau Report - Ditching VH-NGA, tabled by Mr Jason Hartfield, Executive General Manager, Air Traffic Control, Airservices Australia, 29 May 2013.

Regional Australia, Local Government, Arts and Sport portfolio

Documents tabled at hearing on Thursday, 30 May 2013

1. 'Western Sydney needs its own RDA-WSROC', Media release, Western Sydney Regional Organisation of Councils, tabled by Ms Glenys Beauchamp, Secretary, Department of Regional Australia, Local Government, Arts and Sport, 30 May 2013.

2. 'Facts not fear please in referendum debate', Opinion, The Australian, 17 May 2013, media release, Minister for Regional Development and Local Government the Hon Anthony Albanese MP. 'Let's embrace constitutional change', Opinion, Adelaide Advertiser, 10 May 2013, media release, Minister for Regional Development and Local Government the Hon Anthony Albanese MP, tabled by the Minister for Sport representing the Minister for Regional Development and Local Government, Senator the Hon Kate Lundy, 30 May 2013.

284

Appendix 3 Topic list

Agriculture, Fisheries and Forestry portfolio Monday, 27 and Tuesday, 28 May 2013

Division/Agency and Topic Proof Hansard

page reference

Monday, 27 May 2013 Finance and Business Support, Government, Information Services and People and Service Delivery Divisions 7–17

Capability Review recommendations 7

National Food Plan funding 7–9, 13

Department's average unscheduled leave absences 9–11

Lease plan arrangements for IT equipment 11–12

Staffing numbers and changes 12

International Engagement Team, Indonesia 12–13

AusTender notice CN1308911 13–14

Wine Australia staffing levels 14

Resignation of Wine Australia's Chief Executive Officer 14

Horticulture export fees 14–16

National Food Plan support for exporting products 16–17

Department's building lease arrangements 17

Interim Inspector–General of Biosecurity 17–21

Setting the work plan of the Inspector–General of Biosecurity 17–18 Staffing levels in the Office for the Interim Inspector–General of Biosecurity 18

The role of the Inspector–General of Biosecurity 18

Current work priorities 19–21

Office of the Chief Veterinary Officer 21–25

Current status of Bovine Johne's Disease 21–22

National Johne's Disease Control Program 22–23

Bison strain of Bovine Johne's Disease 23

Vaccine for Bovine Johne's Disease 23

Compensation available for farms affected by Bovine Johne's Disease 24 Lyssa virus 24–25, 44

Animal Health Australia; Biosecurity—Animal Division; and Live Animal Exports Division 25–46 National Johne's Disease Control Program 25

Compensation for farms affected by Bovine Johne's Disease 25 Dairy cattle export requirements 25

Approved export program documentation 26–27

The review of the Australian Standards for the Export of Livestock 27 Australian Animal Welfare Standards and Guidelines 28–29, 45–46

285

Page 58

Animal welfare issues 29–30

Animals grazing in national parks 30–31, 34

The starving cattle situation in Queensland 31–34

The department's role in live animal exports 35

The number of countries interested in importing live animals 35–36 The Exporter Supply Chain Assurance System 36, 41–42

Exporting Australian cattle to China 36–37

Live animal export market access priorities 37–38

Health of animals moved through Australia for the live export trade 38 Overseas Development Aid funding for agricultural programs 39 Serious breaches of animal welfare 40

Bahrain–Pakistan ship cruelty incident 40–41

Animal Biosecurity and Response Reform 42

Alleged cruelty of Australian cattle in Egypt 42–44

Bovine Johne's Disease in the Kimberly region 45

Meat and Livestock Australia 46–53

Budget position for 2013–14 46–47

Market opportunities to build demand 47–48

Free trade agreements with China and Korea 48, 52

Bovine Johne's Disease 48

Ovine Johne's Disease 48–49

Indonesia's long–term plan for self–sufficiency 49–50

Global trends affecting the live export and boxed chilled meat export trade 50 Collaboration between James Cook University and the Queensland Department of Agriculture, Fisheries and Forestry Spyglass Beef Research Facility

50–51

Beef Crisis Steering Committee 51

Free trade agreement with Japan 52

Allocation of research and development funds 52–53

Genetically modified free food for Australian cattle 53

LiveCorp 53–55

Re-engagement with Saudi Arabia under ESCAS 54

Budget position for 2013-14 54

Market opportunities for live exports 54–55

Research and development work 55

Border Compliance and Post Entry Quarantine Program 55–79 Industry Equalisation Reserve 56–57, 61–65

BICON IT System 57–61

Post Entry Quarantine Facility in Mickleham Victoria 65–68

Bovine Johne's Disease protocol 68–69

Restructure of the Adelaide Export Food Documentation Office 69–70 Northern Australia Quarantine Strategy 70–73

Biosecurity risk of marinated prawns entering Australia 73

Investigations into Customs and Border Protection services 73–74

286

Page 59

Additional funding provided to Post Entry Quarantine facilities 74 Biosecurity risks associated with an increase in the number of cruise ships 75–78

The establishment of the Centre of Excellence for Biosecurity Risk Analysis 78 Operation Hayride 78–79

Clarification of answers from Additional estimates February 2013 79 Biosecurity—Plant 79–92

Importation of fresh Californian table grapes into Western Australia 79–80, 84 National Fruit Fly Strategy 80

Importation of roses from South America 80–81

Importation of apples from New Zealand 81–82

Horticulture register establishment 82

Residue testing 83–84

Pest risk assessment 84–85

Sterile insect technology 85

Horticulture export fees 86–90

Export Certification Reform Implementation 90–92

Food 92–102

High bacteria levels in long–life milk exported to Hong Kong 92–93 National Produce Monitoring System Pilot Program 93

National Residue Survey 93–94, 96

Australian government authorised officers 95

Cold stores reforms, efficiencies and cost savings 96–97

Accredited cold stores for export access to China 97–98

National Food Plan 98

Fate of frozen beef in containers in Indonesia 99

Australian food manufacturing sector 99–100

Bilingual certificate process with China 100–102

Biosecurity—Policy 102–112

Biosecurity Surveillance, Incident Response and Tracing 102–103 Australian Centre of Excellence for Risk Analysis' advice in relation to DAFF's import risk matrix 103–107

DAFF's Import Risk Analysis matrix 107–111

Biosecurity policy 111–112

Rural Industries Research and Development Corporation 113–114 Budget position 113

Alternative uses for plantation tree farms 113

Dynamic rural communities 114

Australian Bureau of Agricultural and Resource Economics and Sciences 114–126 Wild dog management in Australia 114–115

Australian wheat crop estimates 115–116, 120

Wood supply projections 117–118

Impact of climate change on fisheries 118–119

287

Page 60

Climate change scenarios 120–121

Marine heatwave in Western Australia 121

Productivity forecasts 121–122

Research and development levy system 122

Eastern wheat belt in Western Australia 122–123

Multiperil crop insurance 123–124

Clarification of answers from questions on notice from Additional estimates February 2013 124 Surveying the major Commonwealth fisheries 124

The Fishery Status Report 125

Agricultural commodities – March 2013 edition 125

Tuesday, 28 May 2013 Australian Pesticides and Veterinary Medicines Authority 4–18 The use of fenthion 5–6

The use of trisulfin 6–7

Agricultural and Veterinary Medicines Chemicals Legislation Amendment Bill 2013 7–10 Chemical registration costs 10

Re-registration process for farm chemicals 11

The use of diuron 11–12

The issue of Spray drift and broadacre farming 12-13

The use of carbendazim in imported juice concentrate 13–15

Neonicotinoids 15–18

Australian Fisheries Management Authority (AFMA) 18–44 AFMA's compliance process 18–20

Borthwick Review 20–21, 22,

27–28,

Commonwealth Scientific Industries Research Organisation's ecosystem model 21–22 Reviews of the Harvest Policy and Bycatch policy 22–24, 32–33

Coral Sea Fishery 24, 26

East Tuna and Billfish Fishery 24

Bioregional planning 24–25

Incursions by foreign fishing vessels into Australian waters 26–27 AFMA's compliant process 28–29

The Scheme for Compensation for Detriment caused by Defective Administration claims 30 Gillnetting 30–31

Sustainable Fisheries Report 32

Small Pelagic Fishery 33–34, 35

Marine Stewardship Council 34–35

Northern shark alliance industry 35

Management Advisory Committees and Resource Assessment Groups 36–37 Total levy revenue from the Southern Bluefin Tuna Fishery 37 Stereo-video transition 37–42

The ban of the Abel Tasman vessel 42–44

288

Page 61

Sustainable Resource Management 44–49, 55–71

Caring for our Country Program 44–45, 60, 62,

64–65

Funding allocated to Landcare 45–48, 64

Funding allocated to the Natural Resource Management program 48–49 Landcare 61

Work plan 56

The Australian Feral Camel Management Program 56–60

OceanWatch 62–63

National Landcare Directory 63

Northern Gulf Resource Management Group 63

Environmental Stewardship Funding Program 66–67

Pilot National Produce Monitoring System 67–71

Australian Wool Innovation 49–55

Budget position 49–50

Increase in wool sales to China 50

Opportunities to increase market share 50–51

Sheep health, welfare and productivity 51–52

Research and development into wool harvesting 52

The lack of sheep shearing at the Canberra show 52–53

Wild dog management 53

CRC funding at the University of New England 54–55

Climate Change 71–103

Tasmanian Forests Agreement 71–74

Forest Stewardship Council 75

Regional Forests Agreement 75–77

Rural Financial Counselling Service 77–82, 85–86

Improving social support services to regional and rural communities 82–84 Funding for the Farm Finance Program 86

Farm Businesses Package 86–98

Carbon Farming Initiative 98

South-East Queensland Forest Agreement 99–101

Illegal logging regulations 102–103

Australian Egg Corporation Limited 103–106

Hen Welfare Research Development and Extension Forum 103–104 South Australia's proposal to label free-range eggs 104

Stocking rates of free-range hens 104

Greenhouse gas production of the egg life-cycle assessment 104–105 Labelling relevant stocking density on egg cartons 105

Audits of free-range farms 106

Review of the Domestic Poultry Code of Practice 106

Grains Research and Development Corporation 106–110

Budget position for 2013-14 106–107,

109–110

Research initiatives and priorities 107–108

289

Page 62

Drought and frost tolerant types of grain 108

Multiperil crop insurance 108–109

Weed control technology 109

Managing Climate Variability Program 110

Agriculture Productivity 110–127

National Food Plan funding 110, 113–114,

127

Asian Food Markets Research Fund 110–112

Community Food Initiative grants 111, 116–117

Food in the national curriculum 112, 118–119

Building our Food Trade Ties 112–113

Australian Food and Beverage Supplier Advocate 113

Brand Australia 114

Increasing agricultural productivity 114–115, 118

Global Food Security Index 115

The Council on Food 115

Subcommittee of the Primary Industries Standing Committee 117–118 Review of Food Labelling Law and Policy (Blewett Review) 118 Research and development funding 120–121

Labour shortages in agricultural industries 121–122

Kangaroo meat trade 122

Ord River project 122

SPC Ardmona request for emergency assistance 123–126

Food processing and agricultural productivity 126–127

Foreign investment in the agricultural sector 127

Trade and Market Access 128–135

Negotiations for memorandums of understanding 128

Update on the free trade negotiations with China 128–129

Department's role in Trans-Pacific partnership 129

Update on free trade negotiations with South Korea 129–130

Update on free trade negotiations with Japan 130

Opportunities to expand market access 130–131

The Exporter Supply Chain Assurance System 131

DAFF's relationship with the Department of Foreign Affairs and Trade 131–133 Overseas Development Aid funding for agricultural programs 133–135 Food standards in Japan 135

290

Appendix 4 Topic list

Infrastructure and Transport portfolio Wednesday, 29 May 2013

Division/Agency and Topic Proof Hansard

page reference

Corporate Services 3–11

Government response to the Aviation Accident Report 3–4

Late answers to questions on notice from Additional Estimates 3, 5 Unscheduled leave absences 5–7

TV subscriptions 7

Magazine subscriptions 7

Changes to staffing levels 7–8

Building lease arrangements 8

Targeted savings 9

Moorebank Intermodal Board 9–11

Infrastructure Australia and Nation Building—Infrastructure Investment 11–58 Northern Territory Regional Roads Productivity Package 12–15, 56–57 Funding profile of the Bruce Highway 15, 18

Funding profile of the Mackay northern access upgrade 15

Funding profile of the Rockhampton northern access corridor 16 Funding profile of the Haughton River Bridge upgrade 16

The Nation Building Program funding in the 2013-14 Portfolio Budget Statements 16–17 Funding profile of the Bruce Highway Cooroy to Curra Section A Project

18–19

Additional funding for Infrastructure Australia 19–20

Hume Highway pricing trial 20

New England Highway Bolivia Hill upgrade 21, 34–35

Funding profile of the Brisbane Cross River Rail Project 21, 57–58 Perth Public Transport Package 21–22, 39

Perth light rail project 22

Funding for cycling project 23

Infrastructure Australia's project assessment process 23–25

National Urban Policy Conference 24

Port Link Study 25–26

Abbot Point mega-port proposal 26

Townsville Port Authority 27

Engineer skills shortages in Australia 27

Swan Valley Bypass 27–28, 39,

47–48, 50

East-West road project 28

291

Page 64

Update on the West Connex project 28–29

Update on the Parramatta to Epping rail link 30, 40, 45

Huon Highway and Summerleas Road intersection upgrade 30, 39, 53–54 Uncommitted balance in Nation Building Program 1 30–32

Funding profile of the Nation Building Roads to Recovery 32

Funding profile of the Nation Building Off Network Projects 32 Regional Infrastructure Fund Stream 32, 40, 56

Building Australia Fund 33

Uncommitted balance in Nation Building Program 2 33

Funding profile of the Cotter Road north ramp 33

Funding profile of the Port Botany upgrade program 33–34

Funding profile of the Pacific Highway 35, 41–42

Funding profile of the Scone level crossing on New England Highway 35–36 Funding spilt for projects on the New England Highway 37, 42–43 Funding profile of the Mount Ousley upgrades 37

Funding profile of the Sydney motorways programs 37

Funding profile of the Tiger Brennan Drive duplication 37

Funding profile of the Gateway Motorway upgrade 37

Funding profile of the Ipswich Motorway Rocklea to Darra 37 Funding profile of the Warrego Highway upgrade 38

Funding profile of the South Eastern Freeway 38

Funding profile of the Midland Highway upgrade 38

Funding profile of the South Road upgrade 38, 50–52

Funding profile of the Freight Rail Revitalisation 39

Funding profile of the Brooker Highway 39

Funding profile of the Managed Motorways program 39

Funding profile of the Melbourne Metro project 39, 58

Australian Rail Track Corporation Advanced Train Management System Phase 1 40 Funding profile of the Inland Rail project 40–41

New funding for public transport projects 44

Active transport 44–45

Funding decisions regarding the M2 and F3 motorways 45

Update on the Maldon to Dombarton Rail Link 46

Update on the O-Bahn city access project 46

Update on the Oakajee project 46

Port Link Project – Kalgoorlie, Western Australia 46–47

Funding profile of the Abt Railway 47

Funding profile of the North West Coastal Highway 48

Budget announcements to improve sections of the Great Northern Highway 48–49 Auditor-General's Report Grants for the Construction of the Adelaide Desalination Plant

50

Update on the Darlington construction project 52

Update on the North-South Corridor, South Australia 52–53

292

Page 65

Gawler Rail electrification 54–56

Update on the Yeppen Crossing 57

Australian Rail Track Corporation 59–64

Update on Yarraman Creek 59–60

Advanced Train Management System 60–61

Southern Sydney Freight Line improvements 62

Sydney Metro Freight Line improvements 62

Rail corridor air quality monitoring study 62–63

Shortfalls in rail track system capacity 63

Rail corridor air quality monitoring study: pollution reduction program 4 64 Inspector of Transport Security and the Office of Transport Security

65–69

Offshore facilities security assessments 65

Alternative audit and inspection arrangements 65–66

Private airports not subject to the Aviation Transport Security Act 2004 66 Marine Transport Security Regulations 66–67

Maritime security guard competencies 67

Sydney night patrol 68

Regional airports screening and scanning procedures 68

Update on the implementation of full body scanners 68–69

Aviation and Airports 69–82

Auditor-General's Report into the Management of Federal Airport Leases 69–70 Brisbane Airport 70–71

Avalon Airport 71–73

Gold Coast Airport 73

Security requirements for a trans-Tasman flight 73–74

Adelaide Noise Amelioration Program 74–78

National Airports Safeguarding Framework 78–82

Airservices Australia 82–94

Airport Capacity Enhancement program 83

Civil Air Navigation Service Organisation 84

Gold Coast Airport Instrument Landing System 84–85

Civilian and defence aviation work update 85

Budget position 85

Nav Canada's independent review of air traffic controllers 85–86 Fatigue management system 86–87

Rostering of air traffic controllers 87–88

Ongoing airworthiness and training requirements 88

Performance based navigation 88

Pel-Air ditching incident 88–90

Air traffic controllers at Broome Airport 90

Port Headland Airport 90–91

Perth Airport 91–93

293

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Process for handling noise complaints 93

Flight paths and noise complaints 93–94

Helicopters hovering for extended periods of time 94

Civil Aviation Safety Authority 94–110

Staffing levels 95

Robinson 44 helicopters 95

Sky Sentinel IT program 95–97

Pentana PAWS system 97

Current regulations and the use of mobile phones on aircraft 97–98 Regulation 309A 98

Approved regulations for the use of personal electronic devices 98 Unmanned Aerial Vehicles regulations 98–100

Plant tender update 100

Taxi expenditure 101–102

Complaints of bullying and harassment 102–106

Fatigue management regulations 106–107

Chambers Report 107

Civil Aviation Order 48 – flight time limitations 107–108

Accreditation of aerial firefighting management 108–109

Aviation Accident Report 109–110

Australian Transport Safety Bureau 110–116

Budget position for 2013-14 110–111,

115–116

R44 Robinson helicopters 111–113, 115

International Civil Aviation Organisation annex 13 and Chicago Convention 113–114 Ditching of Pel-Air incident 114–115

Australian Maritime Safety Authority 116–120

Standards of Training, Certification and Watchkeeping Convention 116–118 Regulations pertaining to livestock carriers 118–119

Protection of the sea levy 119–120

Surface Transport Policy 120–126

Stronger Shipping for a Stronger Economy reform agenda 120–123 Foreign flagged vessels 122

Australian sea freight 2010-11 123, 126

General vessel licences 123–124

Benchmarking the Australian shipping industry 125

Carbon dioxide standards for cars 126

Policy and Research 126–136

Keys 2 Drive program 126–127

Major Cities Unit 127, 132–134

National Urban Policy 128

Commonwealth Group on Cities 128–129

National Urban Policy Conference 129–130

COAG Reform Council's Capital City Strategic Planning Systems 130

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Report Draft Active Travel Strategy 131

Update on the implementation of the National Airports Safeguarding Framework 134 Aviation White Paper 134–136

295

296

Appendix 5 Topic list

Regional Australia, Local Government, Arts and Sport portfolio Thursday, 30 May 2013

Division/Agency and Topic Proof Hansard

page reference

Corporate Services 4–13

Late return of answers to questions on notice from Additional estimates February 2013 4

Staffing changes 4

Staffing costs 4–5

Average staffing level 5

Number of staff working in the Local Government Division 5 Staffing levels of the Constitutional Recognition for Local Government Taskforce 5

Work priorities for the Local Government Division 5–6

Funding allocated to the Constitution Recognition of Local Government 6

Taskforce for Constitution Recognition of Local Government's work plan 6

National Civics Campaign 6–8

Regional Development Australia Fund 8–9, 12–13

Breaches of the department's credit card policy 9–10

Building lease arrangements 10

Location and number of staff situated outside of Canberra 10

Regional Australia Institute 10–12

Office for Sport; Australian Sports Anti-Doping Authority and Australian Sports Commission 13–35 Late return of answers to questions on notice from Additional estimates February 2013

13–14

Funding of the Illicit Drugs in Sport Program 14–17

Australian Crime Commission Report Organised Crime and Drugs in Sport 17–18, 21, 23 Australian Sports Anti-Doping Authority's (ASADA) investigations resulting from the report Organised Crime and Drugs in Sport

18–20, 22

ASADA's investigation processes 20–21, 24

The press conference held by the Minister for Sport, Senator the Hon Kate Lundy and Minister for Justice, the Hon Jason Clare MP 22–24 Additional funding of ASADA 24

2015 Asian Cup 24–25, 27

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National Integrity of Sport Unit's additional funding 25

Funding outlined in the 2013-14 Budget papers and the 2012-13 Mid-Year Economic Fiscal Outlook 25–26 Building Australia's Football Community – review into the sustainability of football (Smith Review)

26

2015 Cricket World Cup 27–29

Financial liabilities associated with holding the Asian Cup 28–29 Australian Institute of Sport's scholarship policy 30–31

Four Corners' report of 22 April 2013, Who's Cheating Whom? 32 The 1988 Senate Standing Committee on Environment, Recreation and Arts inquiry: Drugs in Sport Inquiry: Report on the Harassment of a Witness

32–33

Integrity of sport 34–35

Office for the Arts; and the Australia Council for the Arts 35–48 Late return of answers to questions on notice from Additional estimates February 2013 36–38, 43

Royalty Resale Scheme 38–39

National Cultural Policy 39–41

Australian Council Bill and related Bill 2013 41–43

Clarification of answers provided to questions on notice from Additional estimates February 2013 44–45 Australian Centre for Contemporary Arts' production Goldene Bend'er

45–48

National Film and Sound Archive 48–49

Clarification of answers provided to questions on notice from Additional estimates February 2013 48–49 National Gallery of Australia 49–51

Shiva as Lord of the Dance sculpture 49–50

Clarification of answers provided to questions on notice from Additional Estimates February 2013 50–51 Screen Australia 51–52

Interactive Games Fund 51

Clarification of answers provided to questions on notice from Additional Estimates February 2013 51 Regional Strategy and Coordination Division 52–84

Northern Australian Sustainable Futures Program 52–54

North Queensland Irrigated Agriculture Strategy 54–56

Northern Australia Ministerial Forum 56

Soil typing 56–57

Regional Development Australia Committees 57–59, 62–66,

69, 71–72, 75

Community Infrastructure Grants Programs 59–62, 70–71,

73–74

Regional Development Australia Fund 62, 69–70

Dunalley Community Hall 66–68

298

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Northern Territory West Arnhem Land Fire Abatement Scheme 75 Goldfields-Esperance Region 2011-2021 Strategic Development Plan 76

Update on the Unity Housing Affordable Housing Project 76–77 Update on the Wakefield Regional Water Supply 77–78

Murray-Darling Basin Regional Diversification Program 79–82 Update on the Myregion website 82–84

Local Government 84–107

Section 96 of the Constitution of the Commonwealth of Australia 85–87 Final Report from the independent Expert Panel on Constitutional Recognition (Spigelmann Review) 87–88

Funding allocated to the department to run the National Civics Campaign 90, 94, 96 National Civics Campaign 89–90, 94,

96–97, 106

The Australian Local Government Association 90, 97–98, 102,

104–105

Funding of the 'yes' and 'no' campaigns for Constitutional Recognition of Local Government 90–91 Referendum (Machinery Provisions) Act 1984 91

Taskforce on Constitutional Recognition of Local Government 92–93 Funding provided to 'yes' and 'no' campaigns for Constitutional Recognition of Local Government 93–94

Constitutional Recognition of Local Government advertising campaign 94–95 Constitutional Alteration (Local Government) Bill 2013 9798 People's attitudes towards local government 98

Concerns of the states 99

Advice provided to the department by the Australian Government Solicitor 100 Announcement by the Minister for Regional Development and Local Government, the Hon Anthony Albanese MP

100

Opinion pieces written by the Minister for Regional Development and Local Government, the Hon Anthony Albanese MP 100–102 Scenarios under which the referendum proposal would not proceed 105–106 Services to the Territories 107–115

Provision of air services to Norfolk Island 107, 109

Emergency funding provided to Norfolk Island 107–108

Provision of health services to Norfolk Island 108–109

Commonwealth's procurement policy with respect to Norfolk Island 109 Long-term reform for Norfolk Island 110–111

Norfolk Island Government's roadmap process 112

The provision of social security benefits to Norfolk Island 112–115

299