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 2012 as required by standing order 25(20)(f).

Annual reporting requirements

1.4        On 28 June 2012 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 2011–12

Department of Climate Change and Energy Efficiency, Annual Report 2011–12

Department of Sustainability, Environment, Water, Population and Communities, Annual Report 2011–2012, including reports on the operations of the:

  • Natural Heritage Trust of Australia Act 1997;
  • Product Stewardship Act 2011;
  • Ozone Protection and Synthetic Greenhouse Gas Management Act 1989;
  • Hazardous Waste (Regulation of Exports and Imports) Act 1989;
  • Fuel Quality Standards Act 2000;
  • Product Stewardship (Oil) Act 2000;
  • Water Efficiency Labelling and Standards Act 2005;
  • Environment Protection and Biodiversity Conservation Act 1999; and the
  • Commonwealth Environmental Water Annual Report 2011–12.

Australian Communications and Media Authority, Annual Report 2011–12

Bureau of Meteorology, Annual Report 2011–12

Clean Energy Regulator, Annual Report 2011–12

Great Barrier Reef Marine Park Authority, Annual Report 2011–12

National Water Commission, Annual Report 2011–12

Office of the Renewable Energy Regulator, Financial Annual Report 2011–2012

Statutory authorities

Australian Broadcasting Corporation, Annual Report 2012

Special Broadcasting Service, Annual Report 2011–2012

Supervising Scientist, Annual Report 2011–2012

Commonwealth companies/government business enterprises

Australian Postal Corporation (Australia Post), Annual Report 2012

Australian Postal Corporation (Australia Post), Equal Employment Opportunity Report 2012

Low Carbon Australia, Annual Report 2011–2012

NBN Co Limited, Annual Report 2011–2012

NBN Co Limited, Statement of Corporate Intent 2012 to 2015

Reports on the operation of Acts

Australian Competition and Consumer Commission

Telecommunications reports for 2010–11:

   Telecommunications competitive safeguards

   Changes in the prices paid for telecommunications services in Australia

Australian Communications and Media Authority:

National Relay Service Performance Report 2010–11

Department of Broadband, Communications and the Digital Economy: 

Convergence Review, Final Report, Appendix G: Report on review of Schedule 7 of the Broadcasting Services Act 1992

Digital television transmission and reception, Report, April 2012

Digital television transmission and reception, Report, July 2012

Digital television transmission and reception, Report, October 2012

Operation of the Prohibition of Advertisements of Interactive Gambling Services under the Interactive Gambling Act 2001, Report 2011

2011–12 Regional Telecommunications Review

Department of Climate Change and Energy Efficiency Annual Report 2010

Energy use in the Australian Government's Operations 2009–10

Department of Sustainability, Environment, Water, Population and Communities

Land Sector Carbon and Biodiversity Board, Annual Report 2011–12.

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

  • the basis under which the organisation operates, for example 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 2011–12 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:

  • Australian Communications and Media Authority

National Relay Service Performance Report 2010–11

  • Australian Competition and Consumer Commission

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

Telecommunications reports for 2010–11:

Telecommunications competitive safeguards

Changes in the prices paid for telecommunications services in Australia

  • Department of Climate Change and Energy Efficiency Annual Report 2010

Energy use in the Australian Government's Operations 2009–10

1.15      Some agencies missed the report tabling deadline. These will be reported on in the committee's next report and include:

  • Director of National Parks, Annual Report 2011–12
  • Murray-Darling Basin Authority, Annual Report 2011–12
  • Sydney Harbour Federation Trust, Annual Report 2012
  • Wet Tropics Management Authority, Annual Report & State of the Wet Tropics Report 2011–2012

Remarks made in the Senate

1.16      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 Sustainability, Environment, Water, Population and Communities.[6]

1.17      However, the committee also notes the following annual reports reviewed in this report remain on the Notice Paper for consideration under Orders of the Day relating to Government Documents:[7]

  • NBN Co Limited
  • Department of Sustainability, Environment, Water, Population and Communities
  • Great Barrier Reef Marine Park Authority
  • Department of Broadband, Communications and the Digital Economy and
  • Australian Postal Corporation, Statement of Corporate Intent 2012–13 to 2015–16

Comment on certain annual reports

1.18      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)

1.19      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.

1.20      The report notes that the department continued its work in the National Broadband Network (NBN) and the digital switchover processes, reporting that five out of 15 regions have been switched across and more than 80 000 households are accessing the Viewer Access Satellite Television for remote areas.[8]

1.21      The department has undertaken a number of reviews, including completion of the Convergence Review and the Independent Media Inquiry conducted by Justice Finkelstein. Other reviews under way include of the Telecommunications Industry Ombudsman; the Australian Communications Consumer Action Network; and the triennial review of telecommunications services in regional, rural and remote parts of Australia. Recommendations from the various reviews will influence future work priorities and processes.[9]

1.22      A further review undertaken was of the department's Senior Executive Service (SES) leading to a reduction in the SES and 'senior managerial resourcing put into areas of gathering focus'[10] as well as 'necessary [APS] staff reduction'[11] and the introduction of a new departmental structure from 1 July 2012.[12]

Australian Communications and Media Authority (ACMA)

1.23      During the year ACMA provided input to a range of reviews, including the Independent Media Inquiry, the Review of the National Classification Scheme and the independent Convergence Review Committee. ACMA anticipates that recommendations from each of the reviews will be relevant to its role and functions.[13]

1.24      The public inquiry Reconnecting the Customer reported, leading to the development of a new Telecommunications Consumer Protection Code due to take effect from September 2012. The Code requires improved disclosure in advertising and point-of-sale, supported by better complaints-handling processes, improved customer service and the introduction of spend management tools.[14]

1.25      The report notes ACMA activities during the reporting period, including:

  • review of the 400 MHz band;
  • preparations for the proposed spectrum auction scheduled for April 2012;
  • coordination role for the NBN implementation, including protecting consumers in the transition to the NBN and ensuring the continued provision and quality of basic voice services;
  • broadcasting and online investigations resulting from written complaints and inquiries;
  • continued development of its cybersafety role and providing resources for young people covering issues such as cyberbullying sexting and digital reputation; and
  • working with the department to establish the Telecommunication's Universal Service management Agency (TUSMA).[15]

Climate Change and Energy Efficiency Portfolio

Department of Climate Change and Energy Efficiency (DCCEE)

1.26      The department's strategic intent 2012–2015 sets out the three pillars of Australia's climate change policy:

  • mitigation:
    • establish a carbon price
    • improve energy efficiency
    • de-carbonise energy and promoting renewable energy
    • provide accurate and attributable greenhouse and energy data
  • adaptation:
    • establish an effective framework for adaptation
    • lead national reform
    • promote high quality science and information on climate change
  • international engagement
  • participate in multilateral negotiations including the UNFCCC (United National Framework Convention on Climate Change)
  • foster strategic partnerships.

through the organisational effectiveness of people, performance and finance.[16]

1.27      The secretary's review notes that the department has responsibility for the whole-of-government oversight of the Clean Energy Future package which now includes two new independent statutory authorities within the CCEE portfolio: the Clean Energy Regulator and the Climate Change Authority.[17]

1.28      The department has continued to develop the Carbon Farming Initiative (CFI), a carbon offsets scheme which provides new economic opportunities by enabling farmers and land managers to earn carbon credits by storing carbon or reducing greenhouse gas emissions on the land. These credits can then be sold to people and businesses wishing to offset their emissions.[18] It is noted that responsibility for this function has since been taken over by the newly established Clean Energy Regulator (see below).

1.29      Also developed and delivered by the department was a new package of energy efficiency grants programs, including the Community Energy Efficiency Program, the Low Income Energy Efficiency Program and the Energy Efficiency Information Grants Program, all to promote smarter energy use in business, local government, households and communities across the country, including regional Australia.[19]

1.30      The secretary reports that with a number of programs concluding, such as the Home Insulation Program, the Solar Homes and Communities Plan and the Green Loans Program, and the need to operate within the department's allocated budget:

...the department's workforce will need to have reduced from around 900 staff at the beginning of April 2011 to around 600 staff by the end of June 2013. To assist with this reduction, and to ensure that staff in closing program areas are fully supported, the dedicated Job Placement Service has been operating since mid-March 2012, to help identify alternative positions within the department and in other agencies for affected staff.

1.31      The report foreshadows

...a number of significant outcomes to achieve in the 12 months ahead: a significant policy and program agenda; and a significant workforce transition. Our portfolio remains central to the government's agenda and there is important, challenging and rewarding work to be done in all three policy pillars: mitigation, adaptation and international engagement.[20]

Clean Energy Regulator (CER)

1.32      This is the first annual report of the Clean Energy Regulator which began operations on 2 April 2012. Established under the Clean Energy Regulator Act 2011 as an independent statutory authority, it is responsible for administering legislation that will reduce carbon emissions and increase the use of renewable energy.[21]

1.33      The agency is comprised of staff transferred from the Department of Climate Change and Energy Efficiency along with staff from the former Office of the Renewable Energy Regulator which was amalgamated into the CER. The CER has also taken over functions previously performed by the Carbon Farming Initiative Administrator and the Greenhouse and Energy Data Officer.[22]

1.34      The report notes that the CER's role covers a broad range of functions to facilitate participation in and ensure the integrity of:

Australia's new carbon pricing mechanism, which came into effect on 1 July 2012

previously established mechanisms for monitoring and strengthening Australia's response to climate change, namely the National Greenhouse and Energy Reporting Scheme, the Australian National Registry of Emissions Units, the Carbon Farming Initiative, and the Renewable Energy Target[23]

through educating clients, determining entitlements and liabilities, accrediting auditors, managing access to registries, and publishing information.[24]

1.35      The report foreshadows that the CER will be particularly focused on the implementation of the carbon pricing mechanism by building on and enhancing already existing reporting systems in preparation for its commencement.[25]

Sustainability, Environment, Water, Population and Communities Portfolio

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

1.37      During the reporting period the department:

  • saw the culmination of many years work with the announcement of a national representative system of marine national parks;
  • supported the next stages of development of the Murray–Darling Basin Plan;
  • delivered the first round of the Biodiversity Fund projects; and
  • prepared for the introduction of an equivalent carbon price on synthetic greenhouse gases from 1 July 2012.[26]

1.38      Other activities included:

  • the implementation of product stewardship legislation;
  • commemoration of 100 years of exploration and science in Antarctica;
  • participated in the UN Conference on Sustainable Development (Rio+20) Conference in Brazil; and
  • projects to improve the department delivery, leadership and strategic capability in response to a Capability Review conducted by the Australian Public Service Commission.[27]

1.39      During the reporting year the department also underwent a restructure following the transfer of the Housing Affordability function to the Department of Families, Housing, Community Service and Indigenous Affairs, and the Housing Supply Policy function to the Department of the Treasury.[28]

Great Barrier Reef Marine Park Authority (GBRMPA)

1.40      Climate change, declining water quality, loss of coastal habitats and some fishing impacts are key issues affecting the Reef.

1.41      The report provides details of programs undertaken to reduce and respond to impacts of climate change such as a project to improve survival rates of the green turtle at their nesting sites on Raine Island; steps to improve the quality of water entering the Reef lagoon; and managing development activities, which can impact on the ecosystem and species.[29]

1.42      Members of the World Heritage Committee visited a number of locations to consider the status of the Reef's health in March 2012. The Committee:

...wants Australia to demonstrate "substantial progress" on the state of conservation of the World Heritage Area to the World Heritage Centre by February 2013, or risk having this site listed World Heritage in danger.[30]

1.43      During the year under review, the Authority, working with the Queensland Government, commenced a strategic assessment of the Great Barrier Reef Region which will be the:

...focus for the year ahead and will guide out management of the Reef for the next 25 years. It will help us identify the Reef's values that need protecting, threats to those values and what we need to do to address them. The strategic assessment is a way to examine cumulative impacts on values‑multiple pressures from multiple activities‑rather than project by project assessments.[31]

1.44      The report foreshadows the launch, and implementation of, the Great Barrier Reef Biodiversity Conservation Strategy 2012 for protecting at-risk plants, animals and habitats of the Reef and also the Climate Change Act Plan 2012–2017 which will build on the achievements of the first five-year action plan.[32]

General comments

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

1.46      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.

1.47      The committee reiterates the concerns expressed during the past five Supplementary Budget Estimates hearings, since October 2008, 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.

1.48      For the October 2012 round of estimates hearings, annual reports of several agencies from its portfolios were received. 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.

1.49      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. [33]

1.50      Given that Supplementary Budget Estimates hearings are scheduled for the week 21–24 October 2013, the committee expects that annual reports will be available to senators prior to that week.

Summary

1.51      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.

1.52      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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