Report to the Senate


Report to the Senate

Introduction

1.1        By virtue of the operations of standing order 25(20) and a Senate order of 29 September 2010,[1] the Senate refers to this committee for examination and report the annual reports of departments and agencies of the following three portfolios:

  • Broadband, Communications and the Digital Economy;
  • Climate Change and Energy Efficiency; and
  • Sustainability, Environment, Water, Population and Communities.

1.2        Standing order 25(20) requires that the committee shall:

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

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

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

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

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

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

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

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

1.3        This report deals with annual reports tabled in the Senate or presented to the President between 1 May and 31 October 2010 as required by standing order 25(20)(f) and certain other reports tabled during November 2010.

Annual reporting requirements

1.4        On 23 June 2010 the Joint Committee of Public Accounts and Audit (JCPAA) agreed to revised Requirements for Departmental Annual Reports put forward by the Department of the Prime Minister and Cabinet (the Requirements).[2] Under the Requirements, departmental and prescribed agency annual reports are to be tabled by 31 October.

1.5        Under section 48 of the Commonwealth Authorities and Companies Act 1997 (CAC Act), the Minister for Finance and Deregulation outlines the annual reporting requirements for Commonwealth authorities and companies in the Commonwealth Authorities and Companies (Report of Operations) Orders. Section 9 of the CAC Act applies to Commonwealth authorities and specifies the deadline for the presentation of an annual report to the responsible Minister. Section 36 of the CAC Act outlines the reporting obligations of Commonwealth companies.

1.6        Some statutory authorities are required to follow the departmental guidelines if their head has the powers of a secretary as defined under the Public Service Act 1999.

1.7        Requirements for the annual reports of non-statutory bodies are set out in the Government Response to recommendations of the then Senate Standing Committee on Finance and Government Operations in its report entitled, Reporting Requirements for the Annual Reports of Non-Statutory Bodies. The response was incorporated into the Senate Hansard of 8 December 1987.[3]

Apparently satisfactory

1.8        Standing order 25(20)(a) requires the committee to report to the Senate on whether annual reports are apparently satisfactory. In making this assessment, the committee considers such aspects as timeliness of presentation and compliance with relevant reporting requirements.

Purpose of annual reports

1.9        As stated in the Requirements, the primary purpose of annual reports of departments is accountability, in particular to the Parliament.[4] They inform the Parliament, other stakeholders, education and research institutions, the media and the general public about departments' performance in providing services. They are a key reference as well as an internal management document and form part of the historical record.

Changes to portfolio responsibilities

1.10      On 14 September 2010, the Environment, Water, Heritage and the Arts (EWHA) portfolio was renamed the Sustainability, Environment, Water, Population and Communities (SEWPaC) portfolio.

1.11      All arts and cultural related matters were transferred from the SEWPaC portfolio to the Prime Minister and Cabinet portfolio which is overseen by the Senate Finance and Public Administration Committee.

1.12      At the same time, SEWPaC gained housing supply and affordability policy matters from the Department of Families, Housing, Community Services and Indigenous Affairs and sustainable population matters from the Department of the Treasury.

Reports referred to the committee

1.13      The following annual reports have been referred to the committee:

Departments and executive and prescribed agencies

Department of Broadband, Communications and the Digital Economy – Annual Report 2009–2010

Department of Climate Change and Energy Efficiency – Annual Report
2009–2010

Department of Environment, Water, Heritage and the Arts – Annual Report 2009–2010, including reports on the operations of the:

  • Environment Protection and Biodiversity Conservation Act 1999;
  • Fuel Quality Standards Act 2000;
  • Hazardous Waste (Regulation of Exports and Imports) Act 1989;
  • Ozone Protection and Synthetic Greenhouse Gas Management Act 1989;
  • Product Stewardship (Oil) Act 2000;
  • Protection of Moveable Cultural Heritage Act 1986;
  • Water Act 2007; and
  • Water Efficiency Labelling and Standards Act 2005.

Australian Communications and Media Authority – Annual Report 2009–2010

Bureau of Meteorology – Annual Report 2009–2010

Great Barrier Reef Marine Park Authority – Annual Report 2009–2010

National Water Commission – Annual Report 2009–2010

Office of the Renewable Energy Regulator – Report for 2009

Office of the Renewable Energy Regulator – Financial Annual Report
2009–2010

Statutory authorities

Australian Broadcasting Corporation – Annual Report 2009–2010

Director of National Parks – Annual Report 2009–2010

Special Broadcasting Service – Annual Report 2009–2010

Supervising Scientist – Annual Report 2009–2010

Sydney Harbour Federation Trust – Annual Report 2009–2010

Wet Tropics Management Authority – Annual Report 2009–2010

Commonwealth companies/Government business enterprises

Australian Carbon Trust – Annual Report 2009–2010

Australian Postal Corporation (Australia Post) – Annual Report 2009–2010

NBN Co Limited – Annual Report 2009–2010

Reports on the operation of Acts

Australian Communications and Media Authority:

National Relay Service Performance Report 2008–09

Department of Broadband, Communications and the Digital Economy:

Content and Access: The future of program standards and captioning requirements on digital television multi-channels – Report, June 2010

Digital television transmission and reception – Report, May 2010

Digital television transmission and reception – Report, September 2010

Digital television transmission and reception – Report, October 2010

1.14      Appendix 1 provides a record, by portfolio, of:

  • the basis under which the organisation operates, eg department or statutory authority;
  • dates indicating the progressive stages in presentation of the annual reports, where available; and
  • the date each report was tabled in, or deemed to be presented to, the Senate.

Timeliness

1.15      All 2009–10 annual reports examined in this report were timely in their presentation to the Parliament, with the exception of the then Department of the Environment, Water, Heritage and the Arts.

1.16      Under the Requirements, annual reports of departments and executive and prescribed agencies are to be tabled by 31 October. If a department is unable to meet this deadline, an extension of time to report can be sought under the provisions of subsections 34C(4)–(7) of the Acts Interpretation Act 1901.[5] These provisions provide for the departmental secretary to advise the responsible minister of the reasons for the delay. The responsible minister is to table this explanation in the Parliament on the next available sitting day.

1.17      Accordingly, on 29 October 2010 an extension to 12 November 2010, was sought and approved for the tabling of the annual report of the Department of Environment, Water, Heritage and the Arts due to insufficient time to finalise printing and delivery of the report. Approval was given by the Minister on 29 October 2010 and tabled in the Senate on 15 November 2010 (see Appendix 2).

1.18      The committee notes that the Department's report was presented out of session on 5 November 2010.

1.19      A number of reports examined in this report were tabled in the House of Representatives prior to the deadline of 31 October but were not tabled in the Senate until mid November. These reports were from the following organisations:

            Australian Broadcasting Corporation
            Australian Postal Corporation
            NBN Co Limited
            Special Broadcasting Service

            Great Barrier Reef Marine Park Authority
            Supervising Scientist

            Australian Carbon Trust

1.20      Two reports tabled in the reporting cycle period cover different reporting periods were the:

  • report of the Office of the Renewable Energy Regulator covers the calendar year ending December 2009
  • Australian Communications and Media Authority's National Relay Service Performance Report 2008–09.

1.21      The committee notes that the report of the Australian Carbon Trust Limited is the company's first report, having been established on 14 January 2010 and commencing significant operations on 15 March 2010.[6]

Remarks made in the Senate

1.22      Under standing order 25(20)(d), the committee notes that the following reports dealt with in this report were the subject of comment in the Senate:

  • Department of Broadband, Communications and the Digital Economy: Report on Digital Television Transmission and Reception, September 2010, Senators Barnett[7] and Macdonald[8]
  • Office of the Renewable Energy Regulator, Senator Barnett[9]
  • Department of Broadband, Communications and the Digital Economy, Senator Macdonald.[10]

1.23      However, the committee also notes debate on the following annual reports was adjourned on 18 November 2010 and these reports remain on the Notice Paper under Orders of the Day relating to Government Documents:

  • Department of Broadband, Communications and the Digital Economy
  • Australian Postal Corporation
  • Office of the Renewable Energy Regulator-Final report for 2009–10
  • Wet Tropics Management Authority
  • NBN Co Limited[11]

Comment on certain annual reports

1.24      The committee comments on the annual reports of the three portfolio departments referred to it for examination and on several reports from agencies within each portfolio.

Broadband, Communications and the Digital Economy Portfolio

Department of Broadband, Communications and the Digital Economy (DBCDE)

1.25      The report notes that during the reporting period the department focused on:

  • reforms designed to deliver fast broadband services nationwide;
  • restructure of radio spectrum for a wide variety of consumer services;
  • introduction of digital television in a staged rollout creating additional spectrum opportunities; and
  • improving publicly funded telecommunications services to regional Australia.[12]

1.26      The report notes significant progress towards delivering the National Broadband Network, including:

  • establishing the NBN Co and selecting a Board and CEO;
  • release of the Government's comprehensive Implementation Study;
  • drafting and introducing supporting legislation;
  • supporting the early rollout of services in Tasmania;
  • managing construction of new fibre backhaul transmission links in key regional and rural areas; and
  • providing information through a communications program and community forums in locations across Australia.[13]

1.27      As part of the switchover to digital television, the report notes that on 30 June 2010 the analog TV signals were switched off in the Mildura region of Victoria, making it the first region in Australia to switch to digital television. This followed a lengthy period of liaising with local community groups and organisations and programs in stores to provide information and advice to consumers.[14]

1.28      The report foreshadows ongoing efforts by the department in continuing to implement the National Broadband Network, the switchover to digital television, promoting the digital economy and implementing Web 2.0 technologies within the department.[15]

Australian Broadcasting Corporation (ABC)

1.29      The report notes the impact and effects that innovations in digital technology have had on the way in which the ABC provides its services to its audiences, providing access to news, opinion and entertainment through social networks.[16]

1.30      These technological advances which provide enhanced services such as instantaneous, continuous news services emphasise the need for strong Editorial Policies and suitable staff training to ensure accuracy and editorial quality.[17]

1.31      The report notes the success of its ABC3 children's digital television services launched in late 2009, when it offered 40 per cent Australian content with a target of 50 per cent Australian content for 2010.

1.32      At the end of the reporting period 'MediaHub' was launched. This program will enable the ABC to individualise television services for the States and Territories as needed. This flexibility is particularly important, for example, during emergency situations such as floods and fires, providing continuously updated information. MediaHub is also a necessary foundation for the round-the-clock news services to be provided by ABC New 24.[18]

Special Broadcasting Service (SBS)

1.33      SBS provides national multilingual and multicultural radio, television and online services. The report notes that SBS ONE broadcast programs in more than 53 languages, representing over 170 cultures from around the world and within Australia, and SBS TWO broadcast programs in more than 47 languages, representing 115 cultures.[19] Similarly, SBS Radio broadcasts 70 programs, consisting of 68 language programs.[20]

1.34      The report notes that during the reporting year SBS increased its share of audience which rose to 6.4 from 6.2 per cent the previous year.[21]

1.35      The report also notes that revenue raised through advertising and sales of goods and services increased 35.5 per cent over the previous financial year, although this figure was less than originally projected.[22]

Australian Communications and Media Authority (ACMA)

1.36      The ACMA annual report highlights a number of its activities through the reporting period, including:

  • its role in the switchover to digital television, including evaluating digital television coverage across Australia to ensure equivalent coverage before analog television is switched off;
  • public inquiry into customer service and complaints-handling in the telecommunications industry;
  • launch of the Cybersmart website and Cybersmart Online Helpline, providing a one-stop shop for cybersafety information and education resources;
  • completion of a review of, and the release of new Children's Television Standards, the main provisions of which took effect on 1 January 2010;
  • new commercial television industry code of practice which took effect on 1 January 2010, as well as Commercial Radio Australia Codes of Practice and Guidelines 2010; and
  • monitoring compliance by mobile premium services with the Mobile Premium Services Code. The report notes that during the year the number of complaints fell steadily.[23]

1.37      However, the report notes a substantial increase in the number of complaints about online content resulting in investigations into 3828 items of online content, an increase of 68 per cent compared with the previous reporting year. Similarly, the reports notes a 5.47 per cent increase from the previous year in the number of complaints associated with the Do Not Call Register, resulting in 13 investigations into individuals or organisations.[24]

1.38      ACMA implemented a new organisational structure during the year, designed to bring additional focus to several key tasks such as the digital transition for TV and radio and various telecommunications aspects of the National Broadband Network proposals.[25]

Climate Change and Energy Efficiency Portfolio

Department of Climate Change and Energy Efficiency (DCCEE)

1.39       During the reporting period the former Department of Climate Change became a portfolio in its own right when it was combined with energy efficiency parts of the Department of the Environment, Water, Heritage and the Arts, to become the Department of Climate Change and Energy Efficiency.[26]

1.40      The department's responsibilities cover four main areas:

  • reducing Australia's greenhouse gas emissions;
  • improving Australia's energy efficiency;
  • adapting to climate change; and
  • helping to shape a global climate change solution.

1.41      The report notes a number of achievements during the year, including:

  • refining the policy design for the Carbon Pollution Reduction Scheme (CPRS) and its supporting legislation and regulations;
  • implementing the Enhanced Renewable Energy Target scheme;
  • developing and implementing the EITE (emissions-intensive trade-exposed) industry assistance program;
  • release of the National Carbon Offset Standard;
  • continued administration of the mandatory reporting system for greenhouse gas emissions, energy consumption and production by eligible Australian corporations established by the National Greenhouse and Energy Reporting Act 2007.

1.42      During the reporting period the department assumed responsibility for energy efficiency and renewable energy, including such programs as the:

  • Home Insulation Program;
  • Green Loans Program; and
  • National Solar Schools Program, Solar Hot Water Rebate and Solar Homes and Communities Plan.

1.43      The report foreshadows its continued involvement in these program areas, furthering progress in supporting Australia's adaptation to the impacts of climate and continuing its 'focus on broad-based international climate action that can support or lead to global agreement'.[27]

1.44      The report notes the establishment of the Australian Carbon Trust Limited whose purpose is to support action by business on climate change. The trust will implement two programs:

  • the $100 million Energy Efficiency Trust which will provide a range of financing and advisory services to encourage the use of energy-efficient technologies and practices for cost-effective carbon reductions; and
  • the National Carbon Offset Standard Carbon Neutral Program which will enable organisations to gain certification for offsetting some or all of the emissions associated with their operations.[28]

Sustainability, Environment, Water, Population and Communities Portfolio (formerly Environment, Water, Heritage and the Arts)

Department of Environment, Water, Heritage and the Arts (DEWHA)

1.45      During the reporting period, in March 2010, energy efficiency programs, including the Home Insulation Program and the Green Loans program, were transferred by Administrative Arrangements Order from DEWHA to the Department of Climate Change and Energy Efficiency.

1.46      The report highlights a number of the department's achievements across all its outcomes during the year, including:

  • over 590 rangers contracted to manage the natural and cultural values of the Indigenous estate;
  • legal action initiated by the Australian government in the International Court of Justice against Japan's so-called 'scientific whaling' in the Southern Ocean;
  • progress in identifying Areas for Further Assessment as marine reserves under the marine bioregional planning program;
  • purchase of twenty-seven new parks and reserves for the National Reserve System, protecting a diverse range of habitats covering more than 1.1 million hectares;
  • approval of 66 proposals under the EPBC Act; three projects were rejected, including the proposed construction of the Traveston Crossing Dam in South-east Queensland;
  • agreement of a National Waste Policy which includes the establishment of new national product stewardship legislation to underpin schemes for reducing the environmental, health and safety footprint of manufactured goods and materials;
  • continuation of the water purchasing and environmental water release program and development of a water market through the introduction of Water market rules under the Water Act 2007;
  • continued support for the collecting institutions, such as the Australian National Museum, the National Gallery of Australia and the National Library;
  • providing support for the employment of over 560 Indigenous people in the arts and culture sector;
  • introduction of the resale royalty scheme in June 2010;
  • continued support for 191 heritage projects which have created more than 2750 jobs around the country; and
  • addition of seven places to the national Heritage List which now lists 89 places.[29]

1.47      A new outcome structure was implemented to better align the department's work with government priorities. The report states that 'The Strategic Plan–Directions to 2014 provided the basis for the [department's] business planning, linking to [its] key outcomes outlined in the Portfolio Budget Statements 2009–2010.'[30]

1.48      The plan outlined a sixth outcome: organisational effectiveness. To this end three major reviews were conducted. Two reviews focussed on corporate matters: one looking at the most sensible corporate arrangements and the other at financial management and reporting systems. The third review looked at information and knowledge management systems to ensure provision of shared access to information and evidence based work.[31]

1.49      The report states that a change management team was established in April 2010 to oversee all change management processes underway in the department.[32]

Bureau of Meteorology (BoM)

1.50      The report states that:

public surveys show that more than 93 per cent of people are satisfied with the information they get from the Bureau and that many people have been finding Bureau products more useful as our services improve and expand.[33]

1.51      A number of key areas addressed through the year are noted in the report, such as:

  • extending coverage and currency of the Bureau's warning systems, in particular by providing more localised warnings;
  • adoption of a new nationally agreed Fire Danger Rating scale;
  • improvements to the tsunami model in the Joint Australian Tsunami Warning Centre, providing more realistic guidance on the likely impact of tsunami on the Australian coast;
  • improvements to the Tropical Cyclone Warning Service;
  • new seasonal streamflow forecasting methods were developed and trialled at selected sites to support flood forecasting operations; and
  • increased contribution to community education to improve awareness of the Bureau's warning services.[34]

1.52      Throughout the year the Bureau worked towards the production of its first National Water Account to provide information on the status of Australia's water resources.[35]

1.53      The report notes that the Bureau's website 'was the leading government website with an overwhelming share of visits', receiving between 1.5 and 2 billion hits a month, year round.[36]

1.54      The report flags key priorities for the coming year including the development of a National Plan for Environmental Information. This is a four-year initiative which will eventually ensure that better and more environmental information is available, facilitating better informed decision-making across government, industry and the community.[37] Other priority projects include:

  • further rollout of the Next Generation Forecast and Warning System;
  • publication of the National Water Account in April 2011;
  • advancing the Bureau's climate prediction capacity; and
  • upgrading the Bureau's corporate systems with the development of an integrated Enterprise Business System.[38]
National Water Commission (NWC)

1.55      The report notes that during the year NWC delivered its second biennial assessment of progress in implementing the National Water Initiative.

1.56      As a result of findings of this assessment report, the NWC called for urgent action to accelerate the pace of reform and resolve the overallocation of water resources. It also highlighted the scale of adjustment pressures ahead for water-dependent industries, communities and individuals.[39]

1.57      The NWC released a number of other reports during the years, including its:

  • fourth report on the performance of urban water utilities;
  • third report on the performance of rural water providers; and
  • a second annual water markets report.[40]

1.58      The report foreshadows future challenges in:

  • areas of water reform;
  • delivering 'transparency reports' to illuminate opaque or poorly understood issues in water management; and
  • manage tools to improve water management, such as decision-making tools and good practice guides.[41]

1.59      The Commission will also produce its third biennial assessment of progress under the National Water Initiative.[42]

1.60      Finally, the report notes that National Water Commission Act sets a sunset date of 30 June 2012 for the Commission and that during the coming year there will be a review of the Commission itself to determine whether the Act should be extended beyond its current cessation date.[43]

General comments

1.61      The Auditor-General has not qualified any of the financial statements contained in the annual reports under review.

1.62      The committee again commends those agencies that have included both a general index and a compliance index in their annual reports this year. It considers the inclusion of a compliance index to be a very useful tool for accountability purposes.

1.63      The committee reiterates the concerns expressed during the Supplementary Budget Estimates hearings in October 2008, 2009 and 2010, that the majority of annual reports of departments and agencies were not available to senators prior to those hearings, due to the scheduled dates for supplementary estimates.

1.64      Annual reports should be tabled by 31 October each year.[44] The committee notes that Supplementary Budget Estimates are scheduled for the week 17–20 October 2011 and it is concerned that annual reports will again not be available to senators.

Summary

1.65      The committee finds that the annual reports referred to it have provided an appropriately comprehensive description of the activities of the reporting bodies and were of a high standard of presentation. They appear to have met the requirements of the various guidelines that apply to them.

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

Senator Doug Cameron
Chair

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