Report to the Senate

Introduction

1.1 By virtue of Senate Standing Order 25(20), 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 reports tabled in the Senate during the period from 1 November 2010 to 30 April 2011 as required by standing order 25(20)(f).

Annual reporting requirements

1.4 On 23 June 2010 the Joint Committee of Public Accounts and Audit (JCPAA) approved revised Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies (the Requirements) put forward by the Department of the Prime Minister and Cabinet. These Requirements apply to annual reports for the financial year ending on 30 June 2010.[1] Under the Requirements, annual reports of departments and executive and prescribed agencies must be tabled by 31 October.[2]

1.5 Under section 48 of the Commonwealth Authorities and Companies Act 1997 (the CAC Act), the Minister for Finance 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 Requirements 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 is accountability, in particular to the Parliament. 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.[4]

Reports referred to the Committee

1.10 This report reviews ten reports from the Broadband, Communications and the Digital Economy portfolio and three reports from the Sustainability, Environment, Water, Population and Communities portfolio.[5]

1.11 The following reports have been referred to the committee:

Prescribed agencies
Murray-Darling Basin Authority – Annual Report 2009–2010

Statutory authorities
National Environment Protection Council – Annual Report 2009–2010

Reports on the operation of Acts/Agreements
Australian Broadcasting Corporation
Equity and Diversity Annual Report 1 September 2009 to 31 August 2010

Australian Communications and Media Authority
Communications Report 2009–2010

Australian Competition & Consumer Commission
Telecommunications competitive safeguards for 2008–2009
Changes in the prices paid for telecommunications services in Australia 2008–2009

Australian Heritage Council – Periodic Report March 2007–May 2010

Australian Postal Corporation (Australia Post)
Equal employment opportunity program – Report for 2009–2010
Statement of Corporate Intent 2010/11–2012/13

Department of Broadband, Communications and the Digital Economy
Report on Digital Television Transmission and Reception, December 2010
The operation of the Prohibition of Advertisements of Interactive Gambling Services under the Interactive Gambling Act 2001 – 2007, 2008, 2009 and 2010

1.12 Appendix 1 provides an alphabetical record in more detail, including:

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

Remarks made in the Senate

1.13 As required under the terms of Standing Order 25(20)(d), the committee notes that the following reports were the subject of comment in the Senate:

Australia Post: Statement of Corporate Intent 2010–11 to 2012–13[6] and Equal Employment Opportunity Program Report for 2009–10, Senator Macdonald.[7]

1.14 The committee notes that the following annual reports, reported on in this report and in Report No. 1, 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 (Australia Post); and
Office of the Renewable Energy Regulator–Financial Report for 2009–10

Timeliness

1.15 The Requirements state that if a department is unable to meet the tabling deadline, the secretary may seek an extension of time to report by advising the responsible minister of the reasons for the slippage. The responsible minister is to table this explanation in the Parliament on the next available sitting day.[8]

1.16 All reports reviewed in this report were tabled after 31 October. The terms of section 9 of the CAC Act, require that annual reports be given to the responsible Minister by 15 October. As a matter of policy, they also apply to prescribed agencies under section 5 of the Financial Management and Accountability Act 1997 (the FMA Act). Under section 36 of the CAC Act, the content of annual reports of Commonwealth companies is based on reporting requirements under the Corporation Act 2001.[9]

1.17 The committee notes that the annual report of the Murray-Darling Basin Authority did not meet all the reporting deadlines. The report was both submitted to and received by the Minister on 22 November 2010. It was tabled in the House of Representatives on 25 November 2010 and in the Senate on 9 February 2011, thereby missing the 31 October tabling deadline.

1.18 In previous reports on annual reports, the committee has acknowledged advice from the National Environment Council that its enabling legislation requires it to include reports by each member of the Council (ie Commonwealth, State and Territory ministers) in its annual report which leads to its report being tabled after 31 October each year.[10]

1.19 The committee notes that the Department of Broadband, Communications and the Digital Economy tabled four reports, covering 2007, 2008, 2009 and 2010, on "The operation of the Prohibition of Advertisements of Interactive Gambling Services under the Interactive Gambling Act 2001" on 9 February 2011, having been presented out of session on 19 January 2011.

1.20 The Requirements state that 'where an agency's own legislation provides a timeframe for its annual report...that timeframe applies... However, it remains the Government's policy that all annual reports should be tabled by 31 October'.[11] The committee encourages agencies to table annual reports in a timely manner.

Comments on annual reports

Murray-Darling Basin Authority—Annual Report 2009–2010

1.21 The Authority's report covers the first full year of the Authority's operations.

1.22 The report notes milestones achieved in developing the proposed Basin Plan including:

identifying the Basin's key environmental assets and key ecosystem functions;
finalising its stakeholder engagement strategy;
developing a new water-sharing schedule to the Murray-Darling Basin Agreement;
progressing the sustainable diversion limit compliance method, environmental watering plan, water quality and salinity management plan, and a monitoring and evaluation program for the plan's implementation; and
developing a process for accrediting and reviewing water resource plans.[12]

1.23 Throughout the reporting year the Authority, the Basin Community Committee and the Basin Officials Committee held regular meetings on the development of the plan, as well as a series of stakeholder meetings, a peak body forum, a government and science forum and an Indigenous Australian gathering as part of the consultative process.[13]

1.24 The Authority is responsible for a number of programs to assist in the integrated management of all water resources across the Basin, such as:

managing the Murray's flows to ensure water is available for essential water requirements;
implementing the Cap on surface-water diversions for each river valley in the Basin;
minimising the impact of salinity by implementing the Basin Salinity Management Strategy;
providing overall coordination of the Living Murray program, a joint initiative of the Australian Government and the governments of New South Wales, Victoria, South Australia and the Australian Capital Territory; and
monitoring the long-term health of the Basin's rivers through the Sustainable Rivers Audit.[14]

1.25 The report foreshadows the release of the proposed Basin Plan and the continuing projects aimed at developing the most effective ways of balancing water supplies in the Basin.

Bodies not presenting annual reports to the Senate

1.26 Standing Order 25(20)(h) requires the committee to report to the Senate each year whether there are any bodies which do not present annual reports to the Senate which should present such reports. The committee is aware of no such body.

Summary

1.27 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.

1.28 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 commendably high standard of presentation. They generally met the requirements of the various guidelines that apply to them and were timely in their presentation to the Parliament, except where noted above.

1.29 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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