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 2011 as required by standing order 25(20)(f).

Annual reporting requirements

1.4        On 8 July 2011 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.

Reports referred to the committee

1.10      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 2010–11

Department of Climate Change and Energy Efficiency – Annual Report
2010–11

Department of Sustainability, Environment, Water, Population and Communities – Annual Report 2010–2011, 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;
  • Water Act 2007; and
  • Water Efficiency Labelling and Standards Act 2005.

Australian Communications and Media Authority – Annual Report 2010–11

Bureau of Meteorology – Annual Report 2010–11

National Water Commission – Annual Report 2010–11

Office of the Renewable Energy Regulator – Financial Annual Report
2010–2011

Statutory authorities

Australian Broadcasting Corporation – Annual Report 2011

Director of National Parks – Annual Report 2010–11

Special Broadcasting Service – Annual Report 2010–2011

Supervising Scientist – Annual Report 2010–2011

Wet Tropics Management Authority – Annual Report & State of the Wet Tropics Report 2010–2011

Commonwealth companies/Government business enterprises

Australian Postal Corporation (Australia Post) – Annual Report 2010–2011

Australian Postal Corporation (Australia Post) – Equal Employment Opportunity Report 2010–11

Low Carbon Australia – Annual Report 2010–2011

NBN Co Limited – Annual Report 2010–2011

NBN Co Limited – Statement of corporate intent 2011 to 2013

Reports on the operation of Acts

Australian Competition and Consumer Commission

Telstra's compliance with the price control arrangements Report for 2009–10

Telecommunications reports for 2009–10:

Telecommunications competitive safeguards

Changes in the prices paid for telecommunications services in Australia

Australian Communications and Media Authority:

National Relay Service Performance Report 2009–10

Department of Broadband, Communications and the Digital Economy:

Investigation into access to electronic media for the hearing and vision-impaired–Correction

Funding of Consumer Representation Grants Program to telecommunications–Report for 2009–10

Digital television transmission and reception – Report, April 2011

Digital television transmission and reception – Report, July 2011

Digital television transmission and reception – Report, October 2011

Review of technologies for digital radio in regional Australia – Final Report, October 2011

Department of Climate Change and Energy Efficiency Annual Report 2010

Energy use in the Australian Government's Operations 2008–09

Office of the Renewable Energy Regulator Annual Report 2010

Increasing Australia's Renewable Electricity Generation

Natural Heritage Trust Annual Report 2007–08

Natural Heritage Trust Annual Report 2008–09.

1.11      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

1.12      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.

1.13      All 2010–11 annual reports examined in this report were timely in their presentation to the Parliament.

1.14      Some reports tabled in the reporting cycle cover different reporting periods. These were the:

  • Report of the Office of the Renewable Energy Regulator covers the calendar year ending December 2010
  • Australian Communications and Media Authority's National Relay Service Performance Report 2009–10
  • Australian Competition and Consumer Commission

Telstra's compliance with the price control arrangements Report for 2009–10

Telecommunications reports for 2009–10:

Telecommunications competitive safeguards

Changes in the prices paid for telecommunications services in Australia

  • Natural Heritage Trust Annual Report 2008–09
  • Natural Heritage Trust Annual Report 2007–08.

1.15      The committee notes that two additional annual reports of the Natural Heritage Trust covering the years 2009–10 and 2010–11 are included in the Department of Sustainability, Environment, Water, Population and Communities Annual Report 2010–2011.

1.16      The committee is concerned that four annual reports for the Trust have been tabled within a six month period.

1.17      The reports of the following agencies missed the tabling deadlines and will be included in the committee's next report:

Great Barrier Reef Marine Park Authority

Murray-Darling Basin Authority

Sydney Harbour Federation Trust.

Remarks made in the Senate

1.18      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:

  • Natural Heritage Trust Report for 2007–08[6]
  • Natural Heritage Trust Report for 2008–09[7]
  • Wet Tropics Management Authority Annual Report 2010–2011[8]
  • Australian Postal Corporation (Australia Post) report for 2010–11.[9]

1.19      However, the committee also notes the following annual reports reviewed in this report remain on the Notice Paper under Orders of the Day relating to Government Documents for consideration:

  • Australian Postal Corporation – Report for 2010–11 and
    Equal employment opportunity program – Report for 2010–11
  • Wet Tropics Management Authority and State of the Wet Tropics.

Comment on certain annual reports

1.20      The committee provides the following comments on the annual reports of the three portfolio departments referred to it for examination and on several reports from agencies within the portfolios.

Broadband, Communications and the Digital Economy Portfolio

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

1.21      The report notes a number of activities undertaken during the reporting period across its three program areas:

  • Broadband and Communications Infrastructure
  • Telecommunications, Online and Postal services
  • Broadcasting and Digital Television.

1.22      These activities included:

  • passage of the Telecommunications Legislation Amendment (Competition and Consumer Safeguards) Act 2010 which established the future basis for the structural separation of Telstra's network from its other businesses;
  • release of NBN Co Limited's Corporate Plan;
  • establishment of the new Telecommunications Universal Service Management Agency;
  • passage of legislation setting out the regulatory framework for NBN Co to operate;
  • continued roll out of the digital switchover;
  • new 16-channel satellite service for remote or adversely affected consumers;
  • implementing the government's National Digital Economy Strategy;
  • launch of the Convergence Review which will re-examine the existing regulatory framework in light of improvements in communications and media technologies and which is due to report late in 2011–12;
  • continued assessment of spectrum allocations and preparations for the future auction of digital dividend spectrum;
  • introduction of the 2011–13 Corporate Plan; negotiation of a new Enterprise Agreement, implementation of a streamlined risk management framework and roll out of the final stages of a complete electronic filing and information management system.[10]

1.23      The report anticipates continued progress across all areas of responsibility.

Australian Communications and Media Authority (ACMA)

1.24      The ACMA annual report notes the announcement of its Reconnecting the Customer (RTC) initiative. It included a major public inquiry to explore telecommunications customer services and complaints-handling and eventuated in RTC proposals that Australian telecommunications providers and ISPs will need to deliver on six major consumer protection measures. It notes the final RTC report is expected to be released in the next reporting year, September 2011.[11]

1.25      ACMA has participated in the current review of the Telecommunications Consumer Protection (TCP) Code, being undertaken by the Communications Alliance. It is also undertaking a review of the Mobile Premium Services (MPS) Code, expected to be finalised in the second half of 2011.[12]

1.26      The report notes that ACMA has a regulatory role in the emergence of the National Broadband Network (NBN), having a regulatory presence across a range of telecommunications consumer safeguards, including the Universal Service Obligation (USO) the Customer Service Guarantee (CSG) and the Network Reliability Framework. Amendments to telecommunications legislation introduced new powers to strengthen protections offered by the USO and CSG, to protect consumers in the transition to the NBN.[13]

1.27      The report notes the results of actions taken in regard to anti-spam and the Do Not Call Register with court imposed penalties involving SMS spam and enforcement under the Do Not Call Register Act.[14] The report notes that more than 1.33 million numbers were added to the Register, with a total of 6.36 million numbers registered at the end of the financial year.[15]

1.28      ACMA contributed to the government's Convergence Review; provided technical and regulatory advice and information on television coverage related to the digital switchover; continued its work in cybersafety awareness through its program of training teachers, parents and young people directly and improved and introduced new applications such as the main social media and social network channels to enhance its communication with its stakeholder community.[16]

Climate Change and Energy Efficiency Portfolio

Department of Climate Change and Energy Efficiency (DCCEE)

1.29      The report notes that 2010–11 was the first full year of operation as a portfolio department and that its work revolved round the 'three pillars' of the government's 'climate change policy: mitigation, to reduce Australia's greenhouse gas emissions and improve energy efficiency; adaptation, to respond to the climate change we cannot avoid; and international engagement, to help shape a global climate change solution'.[17]

1.30      Works undertaken to achieve these goals included:

  • renewed focus on domestic carbon pricing policy;
  • drafting legislation to implement a carbon price package;
  • establishing the Carbon Farming Initiative, to enable access to domestic voluntary and international carbon markets;
  • administering mandatory registration and reporting of emissions and energy consumption and production under the National Greenhouse and Energy Reporting Act 2007;
  • introduction of the Commercial Building Disclosure program, to assist buyers and lessees to choose more energy-efficient office space and incentives for building owners to improve the energy efficiency of their properties;
  • provision of secretariat support for the newly established independent Climate Commission which will provide advice and information on the science of climate change and its impacts on Australia;
  • participation in international forums and conferences such as the UN Convention on Climate Change in Cancun, Mexico which resulted in a package of international decisions on climate change action balancing the interests of developed and developing countries; and
  • financial support to assist developing countries to respond to climate change.[18]

1.31      The department has developed and implemented business, finance and people management policies and procedures which will enable it to fulfil its ongoing work developing domestic policy and promoting international efforts to respond to climate change.[19]

Sustainability, Environment, Water, Population and Communities Portfolio

1.32             Department of Sustainability, Environment, Water, Population and Communities

1.33      During the reporting period, the department acquired new responsibilities while the Arts and Culture function was transferred to the Department of the Prime Minister and Cabinet. This resulted in a change of name from the Department of the Environment, Water, Heritage and the Arts to its present title to reflect these changes. These new responsibilities included 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.[20]

1.34      The report provides a detailed and, where relevant, illustrated record of the department's areas of responsibilities and work undertaken across a wide range of activities.

1.35      Activities noted include:

  • preparation and launch of Australia's Biodiversity Conservation Strategy;
  • review of the Caring for our Country program;
  • development of marine bioregional plans for each of the identified marine regions in the South-west, North-west, North and East;
  • urban water use and on-farm water efficiency programs;
  • participation in the consultation processes in advance of the publication of the Proposed Murray-Darling Basin Plan;
  • contributed 387 gigalitres of Commonwealth environmental water to rivers, wetlands and flood plains to deliver ecological benefits in the Murray-Darling Basin;
  • continued participation with the Indigenous community through programs such as the Working On Country Indigenous ranger program and the Indigenous Protected Areas program;
  • declaration of five new Indigenous Protected Areas, covering 2.36 million hectares;
  • celebrations for the 100th anniversary of Sir Douglas Mawson's
    1911–1914 Australasian Antarctic Expedition to Commonwealth Bay;
  • implemented Antarctic Treaty measures, proclaiming five new Antarctic Specially Protected Areas, three Antarctic Specially Managed Areas and three Historic Sites and Monuments, and declaring one Specially Protected Species;
  • finalising World Heritage Listing of Ningaloo Reef in Western Australia and Koongarra within Kakadu National Park and the addition of seven places, including the Great Ocean Road and Scenic Environs, to the National Heritage List;
  • further progress in the implementation of the National Waste Policy and the passage of the Product Stewardship Bill;
  • assisting in the delivery of the government's Sustainable Australia – Sustainable Communities strategy which includes measures to support affordable housing and sustainable regional development; and
  • release of Australia's sustainable population strategy.[21]
National Water Commission (NWC)

1.36      During the year NWC undertook a review of the National Water Initiative (NWI), which entailed extensive consultation with parties to the NWI and with key stakeholders. It foreshadows the public release of the report in late 2011. The NWC also finalised its second assessment of reform actions committed to by the Murray-Darling Basin states under Water Management Partnership Agreements.[22]

1.37      The report notes that with the proposed release of the Murray-Darling Basin Plan, the Commission will commence its role as auditor of the effectiveness of the implementation of the plan.[23]

1.38      Finally the report notes that an external reviewer will undertake a review of the ongoing role and functions of the Commission which is expected to be finalised by the end of 2011.[24]

General comments

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

1.40      The committee however does note that three reports of the Department of Sustainability, Environment, Water, Population and Communities; Bureau of Meteorology and Office of the Renewable Energy Regulator contain a note that each body:

...has become aware that there is an increased risk of non-compliance with Section 83 of the Constitution where payments are made from special appropriations and special accounts in circumstances where the payments do not accord with conditions included in the relevant legislation.

and advise that these circumstances will be investigated.[25]

1.41      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.

1.42      The committee reiterates the concerns expressed during the Supplementary Budget Estimates hearings in October 2008, 2009, 2010 and 2011, 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.

1.43      For the October 2011 round of estimates hearings, the committee received annual reports of several agencies from its portfolios. However, none of the annual reports for the three departments overseen by this committee was tabled prior to, and were therefore unavailable for, the hearings.

1.44      The committee notes that the Requirements state that 'a copy of the annual report is to be presented...on or before 31 October'. The Requirements continue:

If Senate Estimates is scheduled to occur prior to 31 October, it is best practice for annual reports to be tabled prior to those hearings. [26]

1.45      Given that Supplementary Budget Estimates hearings are scheduled for the week 17–20 October 2012, the committee expects that annual reports will be available to senators prior to that week.

Summary

1.46      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.

1.47      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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