Chapter 2
Individual 2008-09 Annual Reports
Reports under the Innovation, Industry, Science and Research portfolio
Anglo-Australian Observatory (AAO)
– Annual Report 2008-09
2.2
The AAO operates two telescopes at Siding Spring, near
Coonabarabran, and a laboratory at Eastwood. It also supports Australia's
involvement with the Magellan and Gemini telescopes in Chile and Hawaii. A
high-resolution spectrograph, 'HERMES', is currently under construction.
2.3
The annual report takes pride in the AAO being among the top five
optical telescopes based on papers and citations in the astronomical
literature. Recent research has involved searching for evidence of 'dark
energy' and discovering planets using Doppler measurements.
2.4
The United Kingdom Government has withdrawn from the AAO and it
became a fully Australian owned entity as of July 2010. It is now a unit within
DIISR known as the Australian Astronomical Observatory.
Innovation Australia – Annual
Report 2008-09
2.5
Innovation Australia administers a range of programmes aimed at
stimulating innovation and commercialisation by Australian industry, as well as
offering policy advice to government and promoting innovation in the broader
community. The Annual Report highlights that $910 million was disbursed during
2008-09 through its programmes, supporting over $14.5 billion in R&D and
commercialisation activities.
2.6
Key programmes include the R&D Tax Concession, which achieved
a record number of registrations in 2008-09, the Venture Capital Limited
Partnerships and Early Stage Venture Capital Limited Partnerships programmes,
and the Climate Ready and Re-tooling for Climate Change programmes aimed at promoting
clean business practices and supporting innovation projects addressing the
effects of climate change.
2.7
The committee considers that Innovation Australia has largely met
its reporting requirements under the Act. However, the committee notes that the
report was sent to the Minister on 29 January 2010 – well after the six month
deadline specified in subsection 34C(2) of the Acts Interpretation Act 1901
which applies where 'an Act requires a person to furnish a periodic report to a
Minister but does not specify a period within which the report is to be so
furnished'.[1]
Innovation Investment Fund (IIF)
Companies – Annual Report 2008-09
2.8
A single volume is published with an overview and the annual
reports for IIF Investments Pty Ltd, IIF (CM) Investments Pty Ltd, IIF
BioVentures Pty Ltd, IIF Foundation Pty Ltd and IIF Neo Pty Ltd. Each of
these companies, wholly-owned by the Australian government, was established to
deliver capital into the Innovation Investment Fund, Pre-Seed Fund and Renewable
Energy Equity Fund to provide venture capital to early stage technology based
companies.
2.9
At June 2009 the Innovation Investment Fund had active
investments in 38 companies, mostly information technology, telecommunications
and bioscience companies. The Pre-Seed Fund had active investments in 53
companies, the majority in bioscience, pharmaceutical and medical sector
companies. The Renewable Energy Equity Fund had active investments in four
companies.
Report under the Resources, Energy and Tourism portfolio
Tourism Australia – Annual Report
2008-09
2.10
Tourism Australia reported a difficult year for global and
Australian tourism due to 'the most significant decline in economic conditions
since the Great Depression and the outbreak of the H1N1 influenza epidemic' but
suggested Australia 'continued to outperform its rivals'. Tourism Australia
claimed some of the credit for this with their campaign based on the film Australia.
It also tried to stimulate domestic tourism with the 'No Leave, No Life'
campaign.
2.11
The annual report includes an extensive assessment against its
own performance indicators but little discussion of accountability. In
particular there is no compliance index and no reference to appearances at
Senate estimates.
Reports under the Treasury portfolio
The Treasury – Annual Report 2008-09
2.12
The Treasury highlights developing and implementing policy
responses to the global financial crisis and recession in its review of the
year. These responses include the fiscal stimulus packages and funding
guarantees for financial intermediaries, both of which have been the subject of
inquiries by the Senate Economics References Committee. Treasury also refer to
its international engagement through G-20, advancing of domestic reforms
through the Council of Australian Governments and its provision of the secretariat
for the Australia's Future Tax System Review Panel, chaired by the Treasury
Secretary. The annual report also refers to a number of matters examined by the
committee in 2008 and 2009, such as support for private health insurance, the
tax deductibility of non-commercial losses, employee share schemes, temporary
residents' unclaimed superannuation and taxation of financial arrangements.
2.13
The committee commends Treasury for listing the appearances of
its officers before parliamentary committees.[2]
The committee notes that 25 of these appearances were before the Senate
Economics Committees and expresses its appreciation to Treasury for this
valuable contribution. It also commends Treasury for including a comprehensive
compliance index and references to Australian National Audit Office reports
relating to its operations in its annual report.
Australian Prudential Regulation
Authority (APRA) – Annual Report 2008-09
2.14
APRA remarks in its annual report that, as a result of the global
financial crisis, its 'supervisory intensity was dialled to its highest level'
in 2008-09, but note 'the fundamentally sound condition of APRA-regulated
institutions, notwithstanding two years in dangerous seas'. Also during the
year APRA joined the Basel Committee on Banking Supervision, giving it a seat
at the table when international rules are developed. APRA refer in their report
to three global reform initiatives: raising bank capital, improving management
of liquidity risk and aligning banks' remuneration policies with good stewardship.
2.15
The committee commends APRA for noting its appearances before,
and submissions to, parliamentary committees but suggests it add a compliance
index to its annual report.
2.16
The ARPC is a statutory authority, established by the Terrorism
Insurance Act 2003 in response to a marked reduction in the commercial
terrorism insurance market following the events of 11 September 2001.
It administers a scheme for providing coverage for commercial property and
business interruption.
2.17
During 2008-09 Treasury conducted its second review of the need
for the scheme and concluded that it needed to be continued for at least
another three years.
2.18
The committee suggests that the ARPC's report could be made
clearer by explaining earlier in the report its goals and the meaning of its
'retrocession program'. The report could also be improved by including a
specific compliance index.
Australian Securities and Investments Commission (ASIC) – Annual Report
2008-09
2.19
ASIC aims to improve confidence in financial market integrity and
protect investors and consumers. ASIC's 2007-08 annual report was titled 'a
year of change'. For this report ASIC suggested that 2008-09 was a 'a year of
consolidation'. This occurred against the background of a large fall in share
prices: from peak (in October 2007) to trough (in March 2009) Australia's stock
market valuation fell by over $770 billion – equivalent to around two-thirds of
annual GDP. For a period ASIC banned short selling until markets stabilised.
ASIC added resources to its work on insider trading, market manipulation and
continuous disclosure during 2008-09.
2.20
The committee commends ASIC for providing details of its
appearances before parliamentary committees. As ASIC reports under a number of
Acts, and the requirements in the Australian Securities and Investments
Commission Act 2001 are quite detailed, the committee suggests that a
specific compliance index should be included in future reports.
Financial Reporting Council (FRC) – Annual Report 2008-09
2.21
The FRC is the peak body responsible for the broad oversight of
the accounting and auditing standards setting processes (including appointing
members, other than chairs, to the AUASB and the AASB). It is assisted by a secretariat
located at Treasury.
2.22
Their annual report highlights issues arising from the global
financial crisis, such as the need for updated guidance on the going concern
assumption.
Financial Reporting Panel (FRP) –
Annual Report 2008-09
2.23
The FRP is the primary adjudicator between ASIC and lodging
entities in relation to the application of accounting standards. No matters
were referred to the FRP during 2008-09.
Auditing and Assurance Standards
Board (AUASB) – Annual Report 2008-09
2.24
Under changes effective from 1 July 2008, the AUASB is
responsible for setting standards while support activities are provided by a
new entity, the Office of the AUASB. However the annual report covers both
entities. The major part of AUASB's programme in 2008-09 was work on redrafting
auditing standards in 'clarity' format. The economic crisis also led to new
projects, such as a joint publication with the Institute of Company Directors
addressing the responsibilities of directors during periods of economic uncertainty.
Australian Accounting Standards
Board (AASB) – Annual Report 2008-09
2.25
The AASB develops Australian accounting standards and contributes
to the development of international standards. The AASB comment that the global
financial crisis probably 'slowed the process of achieving global convergence
of accounting standards at the same time as it has underscored the need for
that convergence'.
2.26
Of particular interest to the committee given its December 2008
report on disclosure regimes for charities is the AASB's emphasis in its annual
report on ensuring that 'like-transactions and events are dealt with in a like
manner between the for-profit sector and the not-for-profit sector, unless
there is sound reason to differ in particular circumstances'.
Companies Auditors and Liquidators Disciplinary Board (CALDB) – Annual
Report 2008-09
2.27
The CALDB determines whether a registered auditor or liquidator
should be disqualified. In 2008-09 six registrations were cancelled and two
suspended.
Corporations and Markets Advisory
Committee (CAMAC) – Annual Report 2008-09
2.28
CAMAC is a body corporate of part-time members who advise the
minister about corporate, financial product and financial market matters.
2.29
In its 2008-09 annual report CAMAC describes its reports on issues
in external administration, shareholder claims against insolvent companies, implications
of the Sons of Gwalia decision, diversity on boards of directors and aspects of
market integrity.
2.30
The committee suggests that in its annual report CAMAC should
have referred to its appearance at a Senate estimates hearing in October 2008.
2.31
The committee also suggests that a specific compliance index,
including the reporting requirements under both the FMA Act and ASIC Act,
should be included in future reports.
Productivity Commission (PC) –
Annual Report 2008-09
2.32
The Productivity Commission is an independent research and
advisory body on a range of economic, social and environmental issues.
2.33
In its annual report the PC attributes the global economic crisis
to the prior underestimation of risk. The PC notes the coordinated global
action to ease monetary and fiscal policy, but warns against protectionist
responses. It notes with concern that 'recent contractions in world trade have
been more severe and more rapid than those that occurred in the early stages of
the Great Depression'. It also cites its Trade and Assistance Review
which concluded there is scope to reduce and rationalise some of the $17
billion in industry assistance.
2.34
In reviewing the year, the PC highlights the reports it published
on paid parental leave, government drought support, restrictions on the
parallel importation of books and indigenous disadvantage. Its focus for
2009-10 includes reports on gambling industries, director and executive
remuneration, the not-for-profit sector, anti-dumping systems, private and
public hospitals, water recovery in the Murray Darling basin and wheat export
marketing.
2.35
The PC monitors parliamentary usage of its work, noting that in
2008-09 there were 198 mentions in parliamentary debates and questions and 188
mentions by parliamentary committees. The committee notes that the PC's annual
report refers to the committee's report Annual reports (No. 1 of 2009).
The annual report also includes a table of parliamentary committee reports
drawing on work by the PC.
2.36
The committee commends the PC for having responded to suggestions
from the committee to include a compliance index and references to its appearance
at Senate estimates hearings.
Royal Australian Mint – Annual Report 2008-09
2.37
The Royal Australian Mint referred in its annual report to a
scheduled production shutdown for refurbishment for a period in 2008-09. This
did not prevent it meeting an unexpected increase in demand for circulating
coin. The global recession was associated with reduced numismatic demand.
2.38
The committee commends the Mint for including a compliance index in
its annual report.
Superannuation Complaints Tribunal
(SCT) – Annual Report 2008-09
2.39
In 2008-09 the number of complaints received by the SCT remained
at the higher level experienced in 2007-08 and tended to be more complex. The
proportion of complaints proceeding to review dropped as there were significant
numbers of complaints that were essentially about disappointing, often
negative, returns on superannuation assets (due to global market conditions)
rather than any unfair or unreasonable behaviour by the fund.
2.40
The committee commends the SCT for including a compliance index
in its annual report.
Takeovers Panel – Annual Report
2008-09
2.41
The Takeovers Panel's objective is to resolve disputes about
takeovers. In 2008-09 the Panel received 30 applications, a similar number to
recent years but tending to be more complex cases.
2.42
The committee commends the Panel for including a compliance index
in its annual report.
Senator Annette
Hurley
Chair
Navigation: Previous Page | Contents | Next Page