Chapter 2

Chapter 2

INDIVIDUAL 2008-09 ANNUAL REPORTS

Reports under the Innovation, Industry, Science and Research portfolio

Department of Innovation, Industry, Science and Research (DIISR)

2.1        The Department's annual report emphasised the report of the 'Cutler Review', Venturous Australia: Building Strength in Innovation and the Government's response in Powering Ideas: an Innovation Agenda for the 21st Century. Work has begun on initiatives arising from these reports, such as reforms to research funding for universities. DIISR also drew attention to the components of the stimulus package involving longer-term investment in skills, innovation, education and infrastructure. Of particular interest to the Committee, given its 2008 report on space science, was the Department's work to advance Australia's bid to host the Square Kilometre Array radio telescope.

2.2       The annual report also described the work of IP Australia, which faced the challenge of reduced revenue but still managed to reduce its inventory of unprocessed patent applications.

2.3       The report includes compliance indices for both DIISR and IP Australia but no discussion of external scrutiny, despite DIISR appearing at Estimates in October 2008 and February 2009 and both DIISR and IP Australia in June 2009.  

Commonwealth Scientific and Industrial Research Organisation (CSIRO)

2.4       CSIRO's annual report highlights the significant royalties from their wireless technologies and the commercialisation of their UltraBattery, as well as scientific progress in areas as diverse as solar cells, growth of prawns, sequencing the bovine genome and reducing emissions with a new aluminium production technology. During the year CSIRO published a report on water availability in the Murray-Darling basin, one of its largest ever research projects, and provided expertise in responding to the Victorian bushfires. CSIRO noted the increasing demand for their expertise in areas such as energy, climate change and water management.

2.5       The annual report includes a compliance index and discusses CSIRO's accountability to the government but not to the parliament. CSIRO had appeared at Estimates in October 2008 and February and June 2009. 

Australian Institute of Aboriginal and Torres Strait Islander Studies (AIATSIS)

2.6       AIATSIS is a statutory authority whose goal is to be the world's leading research, collecting and publishing institution in the field of Australian Indigenous studies. Its annual report highlights its research and the growing public interest evident in increased sales and hits to its website.  

2.7       The committee commends the Institute for including a compliance index in its report.

Australian Nuclear Science and Technology Organisation (ANSTO)

2.8       ANSTO is a Commonwealth authority. It is a research and development agency and operates the OPAL reactor. The annual report highlights that the reactor recovered from the disruptions of the previous year and was able to resume production of radiopharmaceuticals, both for domestic use and export.

2.9       The committee commends ANSTO for including a compliance index in its report.

2.10       As in the previous year, the annual report states that 'there were no reports on the operations of ANSTO by a Parliamentary Committee or the Commonwealth Ombudsman during the reporting year.'[1] However, ANSTO appeared before the committee at Senate estimates hearings three times during 2008-09.

Australian Institute of Marine Science (AIMS)

2.11       AIMS is a statutory authority established by the AIMS Act 1972. Its mission is research to support the sustainable use and protection of the marine environment.

2.12       Its annual report highlights funding for the Australian Tropical Oceans Simulator, to be built at its Townsville headquarters, which will extend its understanding of climate change and ocean acidification. AIMS reports strong evidence that these factors are responsible for slower growth in coral reefs. In other work, AIMS recently quantified the value of marine industries at $38 billion in 2006‑07. Research led by AIMS discovered new species in the Great Barrier Reef and Ningaloo Reef.

2.13       The committee commends AIMS for including a compliance index in its report.

Australian Research Council (ARC)

2.14       The ARC is an independent agency, established under the ARC Act 2001, responsible for managing the National Competitive Grants Program, implementing the Excellence in Research in Australia (ERA) initiative and advising the government on research matters.

2.15       Its annual report highlighted funding for over 1,000 research projects (from over 5,000 proposals) and the establishment of the Centre for Groundwater Research and Training. The ARC analysed submissions relating to more than 20,000 journals in preparation for inclusion in the ERA-ranked journal list. The ARC also released its strategic plan for 2008-09 to 2010-11.

2.16       The Committee commends the ARC for noting in its annual report its appearances at Estimates and its responses to questions taken on notice. The ARC also refers in its annual report to the ARC providing witnesses to the Committee's public hearing for its inquiry into space science and industry. The Committee also commends ARC for including a compliance index in its report.

Reports under the Resources, Energy and Tourism portfolio

Department of Resources, Energy and Tourism (DRET)

2.17       Highlights of DRET's year included the launch of the Global Carbon Capture and Storage Institute, the issue of new petroleum exploration permits, progress in development of new LNG projects, the release of the national Energy Security Assessment, initiatives to develop the geothermal industry and development of a national Long-Term Tourism Strategy. 

2.18       DRET's annual report also includes (as Chapter 4) the annual report of Geoscience Australia, a prescribed agency.[2] Geoscience conducted its largest single marine geoscience survey, off Western Australia, and provided spatial information to assist in management of the Victorian bushfires and their aftermath.

2.19       The Committee commends the Department for the inclusion of a compliance index. It also commends it for noting the appearances before Senate estimates of both DRET and Geoscience.[3]

National Offshore Petroleum Safety Authority (NOPSA)

2.20       NOPSA is a prescribed agency under the FMA Act. Its annual report notes that in 2008-09 'the offshore petroleum industry went from a period of growth to one of consolidation and cost cutting' which posed challenges. NOPSA is concerned about 'the relatively high level of personal injuries' in the industry. It highlights one response; the 'Stand Together for Safety' two-hour stand-down dedicated to health and safety issues. Improvements were also made to safety training during staff inductions in the industry.

2.21       Of particular interest to the Committee given its December 2008 report on the matter was NOPSA's contribution to investigations of the fire and explosion at the facilities on Varanus Island.

2.22       The committee commends NOPSA for including a compliance index in its report and referring to its appearance at the October 2008 estimates hearing.

2.23       The NOPSA Board also produced its own, very brief, annual report.

Reports under the Treasury portfolio

Australian Bureau of Statistics (ABS)

2.24       The ABS refers in its annual report to its additional funding which facilitated the reinstatement of the full sample for the Labour Force Survey and the monthly Retail Survey and allows new projects such as an index of living costs for government benefit recipients, measures of progress in reforming human service delivery and improved information concerning indigenous people.

2.25       The annual report includes three special articles, on the role of a national statistical agency in a global financial crisis; climate change and official statistics; and the role of official statistics in COAG information-related initiatives for measuring outcomes.

2.26       The Committee commends the ABS on the inclusion of a compliance index, and notes that it is prominently placed at the front of the annual report. However the Committee suggests that in the discussion of external scrutiny the ABS could have referred to its appearances at Senate estimates in October 2008 and February and June 2009.

Australian Statistics Advisory Council (ASAC)

2.27       ASAC advises both the Minister and the Statistician and met three times during 2008-09. In its annual report ASAC welcomed the increased funding for the ABS but expressed concern that the 2011 census will have no innovations.

Australian Competition and Consumer Commission (ACCC)

2.28       The ACCC is a prescribed agency. It reports jointly with the Australian Energy Regulator (AER). The ACCC described as the highlight of 2008-09 the introduction of criminal sanctions for cartel conduct. The ACCC conducted 412 reviews of mergers proposals in 2008-09 with substantial concerns identified in 16 cases. It also provided strategic advice to the Government on issues such as national consumer law, water trading, grocery pricing and the national broadband network. The AER completed its first review of electricity distribution network revenues and prices.

2.29       The Committee commends the two agencies for including a compliance index near the front of the annual report. It also notes that the annual report refers in a few places to submissions to parliamentary committees and appearances before them, although these are not all readily located from the index or the table of contents and exclude the ACCC's appearances at Senate estimates hearings.

2.30       The report states that 'the ACCC/AER is accountable for its activities through the courts, tribunals, parliament and the Commonwealth Ombudsman. In 2008-09 the ACCC/AER was not the subject of a report by the Auditor-General, a parliamentary committee or the Commonwealth Ombudsman.'[4] The Committee notes that reports on the additional and budget estimates hearings are tabled in the Senate each year by all Senate committees, and therefore the ACCC is the subject (albeit not the sole subject) of a report. Furthermore, other committee reports may reflect upon evidence from the ACCC or make recommendations concerning them. The Committee therefore believes the ACCC should provide a fuller discussion of their scrutiny by parliamentary committees, preferably consolidated into one section of the report.

National Competition Council (NCC)

2.31       The NCC is a statutory authority which advises governments on third party access regulations. Among matters arising in 2008-09 were the NSW water infrastructure access regime, railway services for mines in WA and natural gas pipelines.

2.32       The Committee commends the NCC for including a compliance index in its annual report.

Australian Office of Financial Management (AOFM)

2.33       The AOFM is a prescribed agency responsible for the management of the government's debt, financial investments and cash balances. Their annual report opines that the global financial crisis confirms the wisdom of maintaining a bond market by issuing bonds even when borrowing was not needed for budget funding. In particular it allowed the government to increase the volume of issuance quickly in response to changed circumstances.

2.34       Also during 2008-09 the AOFM resumed issuance of treasury notes and followed a direction of the Treasurer to invest in residential mortgage-backed securities to support competition in lending for housing in Australia. The AOFM is consulting with Treasury and the ABS on how to improve information about the owners, by country, of bonds while minimising any deterrent effect publishing such information could have on demand for the bonds which would increase borrowing costs.

2.35       The Committee commends the AOFM for including a compliance index in its report.

2.36       The AOFM appeared before the committee at Senate estimates hearings three times during 2008-09.  The Committee suggests that references to such appearances before Senate committees should be included in future reports as these appearances are an important aspect of external scrutiny of government agencies.

Australian Taxation Office (ATO)

2.37       The Australian Taxation Office (ATO) is the government's principle revenue collection agency. Its annual report describes 2008-09 as 'a year of empathy and vigilance' noting the impact of droughts, floods and bushfires as well as the economic downturn. The ATO was responsible for the tax bonus payments component of the economic stimulus plan, the biggest single payment ever made through the tax system.

2.38       The Committee commends the ATO for the structure of its annual report, which provides both a simple 'at a glance' summary at the start (including 'areas for improvement') and comprehensive details, including both a compliance index and a separate list covering its reporting requirements specified in 27 Acts and information about interaction with parliamentary committees.[5]

Inspector-General of Taxation (IGT)

2.39       The IGT's annual report describes its completed reports on the causes and management of objections to Tax Office decisions, the administration of public binding advice and a review of non-lodgement. It also sets out the IGT's work programme for 2009-10.

2.40       The Committee commends the IGT for including a compliance index in its annual report.

Commonwealth Grants Commission (CGC)

2.41       The CGC is a statutory authority with the goal of fiscal equalisation (i.e. providing state governments with the financial capacity to provide the same range and quality of services to their residents) through allocation of revenue from the Goods and Services Tax. Its annual report describes its major achievement for 2008‑09 as preparation of the Report on State Revenue Sharing Relativities 2009 Update.

2.42       The annual report notes 'the Commission is subject to external scrutiny by bodies such as Parliamentary Committees...'.[6] The Committee suggests that the CGC's annual report could be improved by including a specific compliance index.

Reserve Bank of Australia (RBA)

2.43       The RBA's annual report discusses the impact of the global economic crisis, which led to the RBA reducing the cash rate six times, by a total of 425 basis points, and adjusting its financial operations to help markets continue to function. There were intervention transactions in the foreign exchange market and the RBA responded to a surge in demand for banknotes. The government stimulus payments led to an increased volume of cheques. The RBA was also required to administer the Guarantee Scheme for Large Deposits and Wholesale Funding. Valuation gains from the weaker Australian dollar led to an exceptionally large profit.

2.44       The RBA also produces separate annual reports on its equity and diversity programme and its payment systems board.

2.45       The Committee commends the RBA for consistently tabling its annual report well before the required deadline and for providing comprehensive details relating to parliamentary accountability. However, the Committee suggests that the RBA's report could be improved by including a compliance index.

Senator Annette Hurley
Chair

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