Chapter 2
Annual reports of statutory and non-statutory authorities and government
companies
Army Amenities Fund (AAF) Company
2.1
The AAF Company Report for 2009–2010 was tabled in the Senate on 14 June
2011.
2.2
The AAF Company was incorporated on 17 July 1987 to administer the
assets of the Army Central Amenities Fund and is trustee of the Army Amenities
Fund and Messes Trust Fund. The Messes Trust Fund provides financial assistance
to newly formed Messes and existing Messes for worthwhile projects that benefit
the wider mess membership.
Review of Operations
2.3
The Directors reported that the AAF's operations, during the reporting
period, were in accordance with the AAF Company statutory objects and comprised
the provision of discounted recreational accommodation for Army members, and
assistance in the provision of recreational facilities and services to Army
members.[1]
Audit Committee
2.4
The AAF Company established an audit committee in accordance with the Commonwealth
Authorities and Companies Act 1997 (CAC Act). The committee is comprised of
three members in accordance with regulations prescribing the minimum
composition of audit committees.[2]
Financial Statements
2.5
The Australian National Audit Office (ANAO) performed an independent
audit report stating:
The financial report of AAF is in accordance with the
Corporations Act 2001, including (i) giving a true and fair view of AAF
Company's financial position as at 30 June 2010 and of its performance for the
year ended on that date; and (ii) complying with Australian Accounting
Standards (including the Australian Accounting Interpretations) and the
Corporations Regulations 2001.[3]
2.6
Further:
The financial statements of the Army Amenities Fund have (a)
been prepared in accordance with the Finance Minister's Orders made under the Commonwealth
Authorities and Companies Act 1997, including the Australian Accounting
Standards; and (b) give a true and fair view of the matters required by the
Finance Minister's Orders including the Army Amenities Fund's financial
position as at 30 June 2010 and its financial performance and cash flows for
the year then ended.[4]
Messes Trust Fund
2.7
Notably the Messes Trust Fund is exempt from all forms of taxation
except the Goods and Services Tax (GST). The interest rate increased from 4.50%
in 2009 to 4.63% in 2010 as a result of changes in market interest rates. It
was reported that the Messes Trust Fund does not have any material credit risk
exposure to any single debtor or trust of debtors.[5]
2.8
In conclusion, the committee finds that this report complies adequately with
all reporting requirements of the CAC.
Australian Strategic Policy Institute (ASPI) report for 2009-2010
2.9
The Australian Strategic Policy Institute (ASPI) report for 2009–2010
was tabled in the Senate on 16 November 2010. ASPI's work covers all aspects of
national decision-making which bear on Australia's security interests and
whole-of-government policy responses, with an emphasis on political, economic
and military security.[6]
2.10
ASPI's constitution establishes four broad purposes for the Institute,
which are:
(a) to encourage and inform public debate and understanding of Australia's
strategic and defence policy choices;
(b) to provide an alternative source of policy ideas to government;
(c) to nurture expertise in defence and strategic policy; and
(d) to promote international understanding of Australia's strategic and
defence policy perspectives.
Review of Operations
2.11
The Directors' Report noted that a review of operations of ASPI across
the financial year indicates that changes in the sales of goods and services
led to a 20.3% decrease in own-source revenue, largely due to the deferral of
some events and publication releases. The decrease in own-source revenue was
offset by an 11.4% decrease in supplier expenses, resulting partly from cost
savings measures in the areas of administration and travel.[7]
2.12
ASPI's major source of funding is provided by the Commonwealth through the
Department of Defence. A seven year Funding Agreement was established in August
2001 at the commencement of its operations.[8]
Financial Statements
2.13
The Australian National Audit Office (ANAO) performed an independent
auditor's report noting that the financial report of ASPI was in accordance
with the Corporations Act 2001, including (i) giving a true and fair
view of the ASPI financial position as at 30 June 2010 and of its performance
for the year ended on that date; (ii) complying with Australian Accounting
Standards (including the Australian Accounting Interpretations) and the Corporations
Regulations 2001.[9]
2.14
The committee finds that this report complies adequately with all
reporting requirements of the CAC.
Director of Military Prosecutions
2.15
The Director of Military Prosecutions Report for 2010 was tabled in the
Senate on 14 June 2011. This is the fourth report presented to Parliament by
Brigadier L.A. McDade.
2.16
The Office of the Director of Military Prosecutions (DMP) is a statutory
body created under the Defence Force Discipline Act 1982 (DFDA). The
position of the DMP was created by section 188G of the DFDA and commenced on
12 June 2006.[10]
The office holder must be a legal practitioner with not less than five years experience,
and be a member of the permanent navy, regular army or permanent air force, or
be a member of the reserves rendering full–time service, holding a rank not
lower than the rank of Commodore, Brigadier or Air Commodore.[11]
2.17
Under section 188GA of the DFDA, the DMP has the following functions:
a) to carry
on prosecutions for service offences in proceedings before a court martial or a
Defence Force magistrate, whether or not instituted by the Director of Military
Prosecutions;
b) to seek
the consent of the Directors of Public Prosecutions as required by section 63;
c) to make
statements or give information to particular persons or to the public relating
to the exercise of powers or the performance of duties or functions under this
Act;
d) to
represent the service chiefs in proceedings before the Defence Force Discipline
Appeal Tribunal;
e) to do
anything incidental or conducive to the performance of any of the preceding
functions.[12]
2.18
The primary function of the DMP is to carry on prosecutions for services
offences in proceedings before court martial or Defence Force magistrates.
2.19
Brigadier McDade reported that at the commencement of the reporting
period the DMP established 14 positions for prosecutors.[13]
External Associations: Appointment of the Office of the Director of
Military Prosecutions (ODMP)
2.20
Brigadier McDade approved the appointment of an Office of the Director
of Military Prosecutions (ODMP) representative to the Australian Association of
Crown Prosecutors (AACP) committee.[14]
Internal Liaison: amendments to the DFDA
2.21
Brigadier McDade noted that the Military Justice Coordination Committee
(MJCC) provided an effective forum to initiate amendments to the DFDA.[15]
The amendments proposed by Brigadier McDade include:
(a)
the right of the prosecution to appeal on sentence;
(b) the amendment of section 70 to allow for the consideration by tribunals
of victim impact statements;
(c) the creation of an aggravated assault offence and
(d) the implementation of global punishments.
Caseload
2.22
Brigadier McDade noted that from 1 January 2010–31 December 2010, 31
Defence Force magistrate (DFM), 32 RCM and 23 General Court Martial (GCM)
hearings were held. She also provided the following caseload data for the
reporting period:
(a) 58 matters were not proceeded;
(b) 65 matters were referred back for summary disposal; and
(c) 3 matters were referred for prosecution.
Significant cases
2.23
The Annual Report cited six significant cases heard during the reporting
period:
(a) Flynn v Chief of Army [2010] DFDAT 3 of 2009: an appeal in relation to
the conviction of Private Flynn by GCM on a charge of being intoxicated whilst
on watch at an ADF base in Baghdad. The appeal was allowed.
(b) Parker v Chief of Air Force [2010] DFDAT 1 of 2010: an appeal in
relation to a conviction by GCM on a charge of culpable driving and driving
under the influence of intoxicating liquor. The conviction on the charge of
culpable driving was set aside and an acquittal was substituted. The conviction
of driving whilst under the influence of intoxicating liquor was confirmed.
(c) Watson v Chief of Army [2010] DFDAT 2 of 2010: Private Watson was
convicted by a Defence Force magistrate of using a forged document. Private
Watson appealed the conviction. The DFDAT allowed the appeal.
(d) Davis v Chief of Army [2010] DFDAT 3 of 2010: An appeal to the DFDAT was
heard on 29 November 2010 which was dismissed by the DFDAT on 22 February 2011.
(e) Green v Chief of Army [2010] DFDAT 4 of 2010: An appeal to the DFDAT was
filed on 12 November 2010 and was due to be heard on 29 April 2011.
(f) Nicholas v the Commonwealth and Another: An appeal to the High Court was
filed on 19 August 2010 and was due to be heard on 29 March 2011.
Section 87 DFDA
2.24
An amendment to section 87, which deals with the power to charge members
of the ADF, is under consideration for a further version of the DFDA.
Civilian casualty incident in Afghanistan
2.25
Three members of the ADF were charged with service offences. The matters
have been referred to the Registrar of Military Justice for trial by general
courts martial. The report included the following table of offences:
Class of Offence
|
RAN
|
ARMY
|
RAAF
|
TOTAL
|
Acts intended to cause injury
|
18
|
13
|
3
|
34
|
Sexual assault and related offences
|
14
|
5
|
3
|
22
|
Dangerous or negligent endangering persons
|
0
|
5
|
0
|
5
|
Harassment and other offences against person
|
0
|
0
|
0
|
0
|
Theft and related offences
|
4
|
6
|
1
|
11
|
Fraud, deception and related offences
|
18
|
26
|
13
|
57
|
Illicit drug offences
|
0
|
2
|
0
|
2
|
Property damage and environmental pollution
|
0
|
0
|
0
|
0
|
Traffic and vehicle regulatory offences
|
1
|
1
|
0
|
2
|
Miscellaneous civilian offences
|
0
|
4
|
0
|
4
|
Specific military discipline offences
|
11
|
18
|
6
|
35
|
TOTAL
|
66
|
80
|
26
|
172
|
The command discipline system
2.26
Brigadier McDade expressed the view that the current command-based
system is operating adequately to meet the discipline needs of the Australian
Defence Force.
Defence Travel Cards
2.27
During this reporting period the number of credit card fraud matters
referred to ODMP continued to decline, representing approximately 5.8% of
matters compared with 7.5% in the previous year and 25% of matters two years
ago.
Conclusion
2.28
In conclusion, Brigadier McDade stated that:
The ODMP has experienced a
period of consolidation in terms of manning and practice following the
reintroduction of the Defence Force magistrate and court martial system. The
priority remains to conduct efficient and effective prosecution of matters
brought within the jurisdiction, with a focus on timeliness. It remains my view
that the command based system currently operating meets the discipline needs of
the Australian Defence Force.[16]
Defence Housing Australia
2.29
The Defence Housing Australia (DHA) report for 2009–2010 was tabled in
the Senate on 16 November 2010. DHA was established as a statutory authority in
1988. In 1992, DHA became a Government Business Enterprise.
2.30
The primary function of DHA is to provide housing and related services
to members of the Australian Defence Force and their families in accordance
with the Defence Housing Australia Act 1988.[17]
2.31
DHA's major projects include:
(a) Muirhead, Darwin
(b) Voyager Point, Sydney
(c) Gordon Olive Estate, Brisbane
(d) Crace, Canberra
(e) Larrakeyah, Darwin
(f) Dundas, Sydney
(g) Everton Park, Brisbane
(h) Pickering Hill, Brisbane
(i) Lyons, Darwin
(j) Weston Creek, Canberra
Relocations events
2.32
Since 2001, DHA has provided relocation services to all ADF members.[18]
In 2009–2010, DHA administered more than 36,000 relocation 'events' involving
ADF members. The annual report stated that of this total: nearly 11,000 events
involved ADF members moving for posting reasons; 7,000 were for ADF members
moving to/from courses around Australia; and some 5,000 were associated with
members changing private rental accommodation.[19]
DHA lease agreement
2.33
Revenue generated from the sale and leaseback of property is DHA's
primary source of capital.[20]
At the end of the reporting period, more than 11,000 properties of DHA's
property portfolio, were managed on behalf of investors.[21]
2.34
In the reporting period, DHA introduced a new edition of its Lease
Agreement to improve readability, clarify DHA and lessor responsibilities,
separate 'lease' and 'service' components, and maximise consistency with state
and territory Residential Tenancy Acts.[22]
Key features that the annual report noted are:
(a) a long term lease;
(b) rent payable from the commencement date until the end of the lease; and
(c) no loss of rent when Defence tenant changes
Operating Results and Returns to Shareholders
2.35
DHA's net operating surplus after income tax for 2009–2010 was $87.8
million.[23]
The report noted that, DHA fully complies with the Income Tax Assessment
Act, Commonwealth Fringe Benefits Tax and the Goods and Services Tax
legislation.[24]
Statement of Corporate Intent
2.36
In DHA's statement of corporate intent the economic stimulus plan was
discussed. The Federal Government provided $245.58 million to DHA as part of
the National Building—Economic Stimulus Plan. DHA expects to complete 829
houses from this funding by March 2011.[25]
2.37
Further, in the statement it was noted that DHA has had a successful
year[26]
and through the capital program, the portfolio was maintained in line with the
New Housing Classification Policy standards.[27]
Financial Statements
2.38
The ANAO conducted an independent auditor's report which concluded that
the financial statements of the DHA have been prepared (a) in accordance with
the Finance Minister's Orders made under the Commonwealth Authorities and
Companies Act 1997 and (b) give a true and fair view of the matters required
by the Finance Minister's Orders including the Defence Housing Australia's
financial position as at 30 June 2010 and its financial performance and cash
flows.[28]
2.39
The committee finds that this report complies adequately with all
reporting requirements for statutory bodies.
Defence Force Remuneration Tribunal
2.40
The Defence Force Remuneration Tribunal twenty-fifth report 2009–2010
was tabled in the Senate on 16 November 2010.
2.41
The functions of the Tribunal are to:
(a) inquire into and determine the salaries and relevant allowances to be
paid to members; and
(b) inquire into and make determinations in respect of prescribed matters
that have been referred to the Tribunal.[29]
2.42
The Tribunal consists of three members who are appointed by the
Governor-General. In accordance with the relevant legislation the President is
a presidential member of Fair Work Australia. The other members are: a person
who is experienced in industrial relations matters; and a person who has been a
member of the ADF.[30]
2.43
Matters considered by the Tribunal during the reporting period included:
(a) ADF officer aviation remuneration structure;
(b) ADF workplace remuneration arrangement 2009–2011;
(c) graded officer pay structure;
(d) graded other ranks pay structure;
(e) medical officers; and
(f) two yearly review of allowances.
2.44
In its report, the Tribunal provided a thorough account of 'all matters
considered' during the reporting year. It disclosed information on the outcomes
of each review and on the negotiating process that occurred between the parties
involved.
2.45
The committee finds that this report adequately complies with all
reporting requirements for statutory bodies.
Judge Advocate General
2.46
The Judge Advocate General annual report for the period 1 January 2010
to 31 December 2010 was tabled in the Senate on 14 June 2011.
2.47
The office of the Judge Advocate General (JAG) of the Australian Defence
Force was created by s. 179 of the Defence Force Discipline Act 1982 (DFDA).
The current JAG, Major General the Hon Justice R R S Tracey, RFD, was
reappointed as JAG on and from 10 February 2010 for a term of four years. The
JAG also holds the appointment of President of the Defence Force Discipline
Appeals Tribunal (DFDAT).
2.48
The functions of the JAG are prescribed by the DFDA. The JAG is
responsible for the following functions:
(a) reporting annually to Parliament on the operation of the DFDA, the
Regulations, the Rules of Procedure, and, the operation of any other law of the
Commonwealth or the ACT insofar as that law relates to the discipline of the
Defence Force[31];
(b) making Procedural Rules for Service tribunals, being Court Martial and
Defence Force Magistrate Rules, and Summary Authority Rules
(c) nominating the judge advocate for a court martial[32]
and Defence Force magistrates[33];
(d) nominating to a Service Chief officers to be members of the judge
advocate's panel[34]
(e) appointing Defence Force magistrates from officers appointed as members
of the judge advocate panel[35];
(f) nominating to a Service Chief legal officers for the purposes of DFDA s.
154(1)(a); and
(g) if requested, providing a final and binding legal report in connection
with the internal review of proceedings before Service tribunals.
Operation of the Superior Military Tribunals
2.49
The number of matters proceeding before court martial and Defence Force
Magistrate are largely consistent with the volume of work which was heard by
the former Australian Military Court.[36]
The JAG noted that the interim measures for these superior military tribunals
have operated satisfactorily during the reporting period.[37]
2.50
The JAG noted that in the case of a General Court Martial, it is
necessary for the Registrar to panel a court comprising at least five officers
including a president of the rank of Colonel Equivalent or above. The work
associated with this, including the screening process to identify availability
and to avoid potential bias, is generally the equivalent of the administrative
effort that was required to panel a jury of six for the former Australian
Military Court.[38]
2.51
In the case of a matter referred for trial before a court martial, the
court martial must be assembled and sworn, even in the event of a plea, because
the president and members will proceed to impose sentence having had
appropriate directions from the judge advocate.[39]
The JAG expressed the view that if the number of matters that are referred to
court martial is to continue, it will be necessary to review the levels of
staffing within the Registrar's office.
2.52
DFDA s.62 creates the offence of commanding or ordering a service
offence to be committed. Defence Legal raised issues, with this section, to the
Office of Parliamentary Counsel, with a view to recommending legislative
amendment. Legislative amendment was not introduced during the reporting
period.
Appeals to the DFDAT
2.53
During the reporting period, there were four appeals to the DFDAT in
connection with convictions recorded by court martial and Defence Force
Magistrate. Each of these appeals was allowed, at least in part except for Davis
v Chief of Army [2011] ADFDAT 1 which was dismissed. These were:
(a) Flynn v Chief of Army [2010] ADFDAT 1
(b) Parker v Chief of Air Force [2010] ADFDAT 2
(c) Watson v Chief of Army [2010] ADFDAT 3
(d) Davis v Chief of Army [2011] ADFDAT 1
High Court Challenge
2.54
A writ of summons was filed in the High Court in the matter of Nicholas
v the Commonwealth of Australia and the Chief of the Defence Force No S 183 of
2010, during the reporting period, seeking a declaration, inter alia, that
such of the provisions of the Military Justice (Interim Measures) Act (No 2)
2009 as purport to give effect to punishments imposed and orders made by
the former Australian Military Court are invalid. The application was heard on
29 March 2011. At the time of reporting, the High Court had reserved its
judgement.[40]
Conclusion
2.55
In conclusion, the JAG stated that:
The interim arrangements reinstating the system of trial by
court martial and Defence Force Magistrate are operating satisfactorily.
However the number of matters proceeding to court martial (as opposed to
Defence Force Magistrate) is significantly out of proportion with the demands
immediately preceding the purported establishment of the former Australian
Military Court.[41]
Royal Australian Air Force Welfare Recreational Company (RWRC)
2.56
The Annual Report of the Royal Welfare Recreational Company (RWRC) for
the year ended 30 June 2010 was tabled in the Senate on 10 May 2011.
2.57
The RWRC was
incorporated on 25 October 1972 to administer the assets of the RAAF Central
Welfare Trust Fund and is subject to the Corporations Act 2001.
2.58
The RWRC has established an audit committee comprising of three members.
The objectives of the Audit Committee are:
(a) Improving the effectiveness and efficiency of RWRC's internal control
framework;
(b) Ensuring that RWRC has appropriate risk identification and management
practices in place;
(c) Improving the objectivity and reliability of financial reporting;
(d) Ensuring that RWRC has adequate procedures on matters of audit
independence; and
(e) Assisting the Board to comply with all governance and other obligations.
2.59
The RWRC annual report is in accordance with the CAC Act. The annual
report includes a 'report of operations' which is prepared by the Chairman. It details
rental activities of the Ambassador, Tuscany and Marrakai facilities. The Board
made the decision to increase the rates of all facilities by 10%, effective 1
August 2010. The report of operation includes an outline of the organisational
structure; review of operations and future prospects; reviews by outside
bodies; RWRC board of directors; and board member's attendance at meetings.
2.60
The report also includes financial statements and a delegate of the
Auditor-General's report on those financial statements, in accordance with the
CAC Act.
2.61
The committee finds that this report complies adequately with all
reporting requirements for statutory bodies.
Non-Statutory authorities and government companies
ASC Pty Ltd – Annual Report 2010
2.62
The ASC Pty Ltd Annual Report 2009 was tabled in the Senate on 23
November 2010.
2.63
Initially established in 1985 as Australian Submarine Corporation, ASC
was subsequently chosen in 1987 as the prime contractor for the design,
manufacture and delivery of the Royal Australian Navy's (RAN) fleet of six
Collins Class submarines.[42]
2.64
ASC Pty Ltd is a proprietary company limited by shares registered under
the Corporations Act 2001. All the shares issued in the capital of ASC Pty Ltd
are owned by the Minister for Finance and Deregulation.[43]
2.65
In his chairman's report, Vice Admiral Chris Ritchie AO RANR, stated
that 2009/10 represented a period of significant internal change.[44]
Specifically three members of the board retired and four new board members were
appointed.[45]
2.66
The principal activities of the ASC Pty Ltd during the course of the
financial year ending 30 June 2010, included:
(a) Collins class submarine related activities; and
(b) Hobart Class AWD related activities
Collins Class Submarine Project
2.67
ASC Pty Ltd carries out maintenance, upgrades and engineering activities
for the Collins Class submarines under an agreement with DMO, called Through
Life Support (TLS).[46]
ASC Pty Ltd is in the seventh year of the Collins Class submarine TLS contract.[47]
The contract is due to expire in 2018, subject to exercise of options for two
further five-year periods—consistent with the expected life of the Collins
Class submarines.[48]
2.68
In this reporting period, the major submarine related activities
included maintenance, design development, engineering and upgrading of six
submarines for the RAN. These activities were undertaken for the Collins Class
submarines under the TLS Contract.
2.69
During 2009–2010, ASC Pty Ltd maintained Collins Class submarines at
ASC's facilities in South Australia (ASC North) and Western Australia (ASC
West). Three submarines were operational by the end of 2010.[49]
Activities undertaken from ASC North included:
(a) one full cycle docking;
(b) one intermediate maintenance availability;
(c) a main motor refurbishment;
(d) a pre-full cycle docking;
(e) crew training on operational deployment;
(f) one intermediate maintenance availability;
(g) a main motor refurbishment with an in country contractor;
(h) metal loss repairs of bilges and surrounding tanks; and
(i) preparations for a full cycle docking due to commence in January 2011.
2.70
Activities conducted at ASC's West included:
(a) technically challenging generator repairs;
(b) one intermediate docking; and
(c) one certification docking.
2.71
Major achievements included:
(a) exploration of efficiencies in the Collins Class maintenance project;
(b) obsolescence management;
(c) development of design improvements to platform systems and equipment;
(d) on schedule and successful completion of a Critical Design Review of the
AWD project ;
(e) successfully introducing the Matrix One Product Lifecycle Management
Systems and Aveva marine 3-D CAD;
(f) development of in situ repair to rectify banding problems with the 5.4
MW Jeumont DC propulsion motors;
(g) a complex in situ repair and rewinding after a main generator failure
and
(h) increased focus on on-going reliability problems with the Hedemora
diesel engines.
Establishments in 2010
2.72
The Australian Submarine Project Officer (ASPO) was established in 2010.
The managing director stated that the establishment of the ASPO will maintain
close cooperation between ASC, DMO and the RAN.[50]
The Techport Australia's Common User Facility (CUF) also opened in 2010.
Hobart Class AWD related activities
2.73
Activities continued under the Alliance Based Target Incentive Agreement
(ABTIA) with other members of the AWD Alliance, the Commonwealth of Australia
represented by the DMO, and Raytheon Australia. The ABTIA commits the Alliance
members to work as an integrated team to deliver the RAN's next generation
warships.[51]
2.74
The Directors Report noted that:
Since entering into the alliance based contract for the
design and construction of three Hobart Class AWDs in October 2007, key
milestones have been completed according to plan, most notably the Integrated
Baseline Review in July 2008, the Preliminary Design Review in December 2008
and the Critical Design Review in December 2009. Contracts have been placed
with BAE Systems Australia Defence Pty Ltd (BAE) and FORGACS Engineering Pty
LTd (FORGACS) for the construction of ship blocks, and production activities
have commenced on both sites. Production activities have also commenced in
ASC's shipyard. Across the three sites construction of eleven blocks has
commenced for Ship 1, in addition to two pilot blocks at ASC and FORGACS.
Procurement of major combat systems and platform equipment continues in
accordance with programs requirements. Development activities on ASC's shipyard
completed during the period, with all buildings now operational and the
workforce in residence.[52]
2.75
In 2010, together the Alliance partners, ASC managed key aspects of the
AWD project, including:
(a) development of the Alliance team;
(b) alliance schedule and budget;
(c) alliance program review milestones;
(d) the review combat system, ship design and shipbuilding progress;
(e) procurement of equipment and materials; and
(f) commencement of Ship 1 construction at three Australian sites.
Review of Operations: One Company Transformation
2.76
A key initiative that ASC Pty Ltd undertook in 2010 was the 'One
Company' transformation. In May 2010 ASC Pty Ltd had an amalgamation of the
Submarine and Shipbuilding sides of the business.[53]
The Chairman, Vice Admiral Chris Ritchie AO RANR, stated that this
transformation resulted in job losses where duplication existed[54]—41
personnel were made redundant and 34 unfilled positions were abolished[55]—but
allowed ASC Pty Ltd to become "more customer focussed and efficient across
the business"[56]
Deep Blue Tech
2.77
Deep Blue Tech (DBT) is a wholly owned subsidiary of ASC Pty Limited.
DBT was established in 2007 to conduct research and develop concepts for
Australia's SEA 100 Future Submarine project. The projects that DBT worked on
for the reporting period include:
(a) defining the processes necessary for early concept design and developing
the requirements for the project;
(b) identifying key activities and resources for the lifecycle of the
project;
(c) developing models capturing the sources of propagation paths for
critical signatures for the future submarines;
(d) developing a whole-of-submarine model called Subsim;
(e) evolving a model for developing a system architecture, based on best
practice systems engineering and open architecture principles;
(f) developing solutions to increase habitability; and
(g) studying combat systems, auxiliary systems, and energy and propulsion
solutions for various submarine concept designs
Work Smart program
2.78
In 2009 the 'Work Smart program' was initiated. The program aims to
identify sources of waste and eliminate them in order to improve processes,
performance, and customer and staff satisfaction.[57]
During 2009-2010 the projects included:
(a) the 'Pipe Shop 5S' project which reviewed and improved the handling of
piping material during the refurbishment process;
(b) a joint ASC-DMO program called Management of Work;
(c) six improvement events; and
(d) two workshops set up to improve the processes and performance in the
delivery of engineering, materials, workpacks and scheduling.
Code of Conduct
2.79
ASC Pty Ltd has implemented a Code of Conduct for directors and
executives which seeks to:
(a) articulate the behaviour expected of directors and executives;
(b) encourage the observance of those standards to protect and promote the
interests of shareholders and other stakeholders;
(c) guide directors and executives as to the practices considered necessary
to maintain confidence in the ASC Pty Ltd Group's integrity; and
(d) set out the responsibility and accountability of directors and
executives to report and investigate any reported violations of the Code of
Conduct or unethical or unlawful behaviour.
2.80
ASC Pty Ltd has presented a comprehensive and informative report. The
committee finds that it adequately complies with all reporting requirements.
2.81
The committee considers that all the annual reports of the
abovementioned organisations fully met their respective reporting requirements.
Senator Ursula Stephens
Chair
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