Chapter 3


Chapter 3

Annual reports of Commonwealth Authorities and Agencies

3.1        For the financial year 2011-12, the annual reports of the following statutory bodies were referred to the committee for examination and report during the period 1 May to 31 October 2012:

Families, Housing, Community Services and Indigenous Affairs Portfolio

  • Aboriginal Hostels Limited
  • Aboriginal Land Commissioner, Northern Territory
  • Australian Institute of Family Studies
  • Central Land Council
  • Coordinator-General for Remote Indigenous Services[1]
  • Indigenous Business Australia
  • Outback Stores Pty Ltd
  • Social Security Appeals Tribunal

Health and Ageing Portfolio

  • Aged Care Commissioner
  • Aged Care Standards and Accreditation Agency Ltd
  • Australian Commission on Safety and Quality in Health Care
  • Australian Institute of Health and Welfare
  • Australian National Preventive Health Agency
  • Australian Organ and Tissue Donation and Transplantation Authority
  • Australian Radiation Protection and Nuclear Safety Agency
  • Cancer Australia
  • Food Standards Australia New Zealand
  • Health Workforce Australia
  • Independent Hospital Pricing Authority
  • National Blood Authority
  • National Health and Medical Research Council
  • National Industrial Chemicals Notification and Assessment Scheme
  • Office of the Gene Technology Regulator
  • Private Health Insurance Ombudsman
  • Professional Services Review

Human Services Portfolio

  • Australian Hearing

3.2        The committee chose selected reports on which to make more detailed comment. Examined in more detail are the annual reports of:

  • Food Standards Australia New Zealand
  • The Australian Commission on Safety and Quality in Health Care
  • Indigenous Business Australia
  • Central Land Council
  • Independent Hospital Pricing Authority
  • Aboriginal Land Commissioner (Northern Territory)

Food Standards Australia New Zealand

2.11    Food Standards Australia New Zealand (FSANZ) was established as a Commonwealth statutory authority under the Food Standards Australia New Zealand Act 1991 to protect public health and safety, provide adequate information to consumers, and prevent misleading or deceptive conduct.[2]

3.3        The FSANZ annual report was readable against the deliverables and KPIs in the Portfolio Budget Statements 2011–12 and all performance targets were either met or substantially met.[3] FSANZ did not meet the statutory timeframe for two out of fifteen regulatory measures concerning applications and proposals. However, the committee notes that FSANZ granted approval for the first measure within one month of the due date and the second measure within ten days of the due date.

3.4        In its second report on annual reports for 2012 the committee commented on the progress of the primary production and processing standard for seed sprouts and the delay in finalising primary production and processing standards for meat and meat products.[4] The committee is pleased to note that the primary production and processing standard for seed sprouts is now gazetted.[5] ­

3.5        The committee recognises that FSANZ developed a draft primary production and processing standard for the major species of meat and meat products in 2010–11, and that FSANZ considered the management of the remaining minor meat species and wild game in 2011–12. In 2011–12 FSANZ conducted the first round of public consultation for major and minor species standards with a view to developing 'a draft standard and implementation package covering all meat species for a further round of public consultation in the future'.[6] The committee notes that the Portfolio Budget Statements 2012–13 state that FSANZ will complete the primary production and processing standards for meat and meat products in 2012–13.[7]

Australian Commission on Safety and Quality in Health Care

3.6        The Australian Commission on Safety and Quality in Health Care (ACSQHC) was established by the Commonwealth, state and territory governments on 1 January 2006. The ACSQHC existed in unincorporated form within the Department of Health and Ageing. The committee would like to acknowledge the work of Professor Chris Baggoley in developing national health care standards during this period.

3.7        The ACSQHC commenced as an independent statutory authority on 1 July 2011 under the National Health Reform Act 2011 funded jointly by all governments in Australia.[8] This is the first annual report that the committee has received from the ACSQHC.

3.8        Following the passage of the National Health Reform Act 2011 the ACSQHC has transitioned from a program-based approach to an approach focussed on the development of national health care and clinical standards and accreditation schemes.[9]

3.9        Mr Bill Beerworth, Chair of the ACSQHC, notes that a priority for the ACSQHC in its first year as an independent body has been the continued 'development and implementation of the National Safety and Quality Health Service (NSQHS) Standards for accreditation'.[10]

3.10      The committee notes that the ACSQHC coordinates the National Antimicrobial Stewardship Network and that the Australian Health Ministers' Advisory Council has 'endorsed the establishment of a new subcommittee to coordinate a national strategy for antimicrobial resistance in Australia'.[11] The committee understands that this refers to the Antimicrobial Resistance Standing Committee (AMRSC).[12]

3.11      Antimicrobial resistance has been a key concern of the committee in recent estimates hearings. The committee is encouraged by the initiation of a steering group comprising the secretaries of the Departments of Health and Ageing and Agriculture, Fisheries and Forestry and the Chief Medical and Veterinary Officers, particularly if it leads to national leadership and coordination activities across portfolios.[13] However, the committee is keen to hear of the progress made by the ACSQHC and its liaison with the AMRSC particularly as it relates to national data-gathering, surveillance and reporting activities in the human sphere.  

Indigenous Business Australia

3.12      Indigenous Business Australia (IBA) is a statutory authority under the CAC Act and is enabled by the Aboriginal and Torres Strait Islander Act 2005.[14]

3.13      In its second report on annual reports for 2012 the committee noted that the slow progress in enabling long term transferable tenure on Indigenous land had impacted negatively on the implementation of the IBA Home Ownership on Indigenous Land (HOIL) program.[15]  On 1 July 2012, the Home Ownership Program and the HOIL program were merged into the Indigenous Home Ownership Program.[16] IBA notes that the merging of the home ownership programs should enable IBA to provide approximately 650 home loans in 2012–13 up from 404 in 2011–12.[17]

3.14      The committee commends IBA on achieving all its targets related to the Indigenous Home Ownership program.[18] The committee acknowledges that there has been a slight increase in Indigenous home ownership from 35.9 per cent in 2006 to 37.4 per cent in 2011. However, the committee notes that Indigenous home ownership rates are well below the non-Indigenous rate of 69.6 per cent. Evidence given at the most recent Cross-Portfolio Indigenous Affairs estimates hearing suggested that progress on land tenure reform may be needed if Indigenous people are to have greater opportunities to own their own home.[19] 

Central Land Council

3.15      The Central Land Council was formed in 1974 and is a statutory authority operating under the Aboriginal Land Rights (Northern Territory) Act 1976.[20]

3.16      The committee finds the Central Land Council annual report to be well-presented, engaging and informative. The committee congratulates the Central Land Council on the launch of its new website, which the committee considers to be a well-managed and accessible place to find information about the Council and its activities.

3.17      The committee notes the Central Land Council's leadership change that occurred in May 2012. The Chairman Mr Lindsay Bookie was removed by the Council after he had invited members of the Northern Territory legislative assembly and political candidates to participate in a closed session Council meeting. Central Land Council Director Mr David Ross notes that the Council has occasionally invited political representatives to attend its meetings only in open sessions as guests, and that the Council does not accept political interference in its operations. Mr Ross stated that the Council handling of the event 'demonstrated its commitment to sound governance'.[21] The new chairman is Mr Phillip Wilyuka.

Independent Hospital Pricing Authority

3.18      The Independent Hospital Pricing Authority (IHPA) was established on 15 December 2011 as a prescribed agency under the National Health Reform Act 2011.[22] The IHPA reports as a prescribed agency under the FMA Act. This is the first annual report that the committee has received from the IHPA.

3.19      Under the National Health Reform Agreement in August 2011, the Council of Australian Governments (COAG) 'unanimously agreed to the establishment of Activity Based Funding (ABF) as the primary funding methodology for public hospitals throughout Australia'.[23] ABF allocates payments to hospitals based on 'the number and mix of patients they treat'. ABF operates by classifying patients into clinically relevant groups, counting each patient episode, costing a representative sample of patient episodes, and recognising instances where additional costs may be present such as 'providing health services in remote areas, or to children'.[24]

3.20      The IHPA was 'charged with determining the National Efficient Price (NEP) for public hospital services' as a precondition for ABF.[25] In its first six months, the IHPA delivered the NEP for public hospital services.[26]

3.21      The inaugural NEP was $4 808 per National Weighted Activity Unit (NWAU). The NWAU allocates a weight to various procedures and allows costs to be determined and comparison to be made across a range of activities.[27] The Commonwealth government uses the NEP to determine its funding allocations to the Local Hospitals Networks.[28]

3.22      The committee notes that the IHPA, the ACSQHC and the Australian National Health Performance Authority (ANHPA) will be working in partnership to deliver on pricing, quality and performance measures. The committee anticipates reviewing the ANHPA annual report in its second report on annual reports for 2013.

Aboriginal Land Commissioner (Northern Territory)

3.23      The Aboriginal Land Commissioner is a statutory office holder and reports under section 61 of the Aboriginal Land Rights (Northern Territory) Act 1976.

3.24      The committee acknowledges the long period of service that the Hon Howard Olney AM QC has given in the office of Aboriginal Land Commissioner:

on a full-time basis between 25 May 1988 and 31 December 1991, and, almost continuously, between 18 March 1998 and 3 May 2005 on a full-time basis, and then on a part-time basis almost continuously between 6 May 2005 and 27 April 2012.[29]

3.25      During 2011–12 Mr Olney was Aboriginal Land Commissioner on a part-time basis until 27 April 2012. The Hon Justice JR Mansfield AM also acted as Aboriginal Land Commissioner on a part-time basis from 23 November 2011. Mr Olney continued in his role in order to finalise the Report to the Minister on an application to establish a new Land Council (proposed to be known as Katherine Regional Land Council).[30]

3.26      The committee notes that the proposed new Land Council is contained wholly within the area of responsibility of the Northern Land Council and that Mr Olney provided his Final Report to the Minister on 27 April 2012.[31]

 

Senator Claire Moore
Chair

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