CHAPTER 1

ANNUAL REPORTS OF DEPARTMENTS

1.1        The following reports of departments for the financial year 2006‑07 were referred to the committee for examination and report:

• Department of Immigration and Citizenship.

 

Department of Immigration and Citizenship (DIAC)

1.2        DIAC reported an actual operating loss for the reporting period of $40 million.[1] This compared to a $50 million loss as approved by the Minister for Finance and Administration. DIAC noted that the operating loss was a result of ongoing financial pressures including[2]:

• growth in the number of students entering the country;
  
  
• an increase in the volume and complexity of the migration caseload relating to family and skilled migration;
  
  
• an increase in the proportion of difficult and complex cases in the refugee caseload; and
  
  
• an increase in citizenship applications in anticipation of new citizenship test coming into effect in 2007-08.

1.3        DIAC reported continuing progress in the implementation of recommendations contained in the reports by Mr Mick Palmer AO APM and Mr Neil Comrie AO APM, the Commonwealth Ombudsman and the Auditor-General.[3] DIAC identified several areas of improvement including[4]:

• client service;
  
  
• business and cultural transformation; and
  
  
• immigration detention.

1.4        The committee notes that the number of people held in immigration detention continued to decline in 2006-07.[5] 5485 people were detained at some time during 2006-07 compared to 7375 in 2005-06.[6] The committee welcomes the Immigration Minister's announcement on 29 July 2008 of a risk-based approach to immigration detention. In particular the committee welcomes the minister's statement that immigration detention: "will only be used as a last resort and for the shortest practicable time."[7]

1.5        During the reporting period DIAC granted visas to 148 200 people, reporting that 66% of these were skilled migrants and their dependants.[8] Priority places in the skilled migration scheme were given to:

• employer-sponsored visas;
  
  
• state and territory sponsored visas; and
  
  
• occupations in national demand.

1.6        DIAC reported that:

The volume and proportion of employer sponsored visas continued to increase through 2006-07. The volume of state sponsored visas had decreased as a consequence of an expansion of the number of occupations on the Migration Occupations in Demand List (MODL) which gives a migration advantage to people with skills in demand in the labour market.[9]

1.7        The committee considers the annual report of the Department of Immigration and Citizenship to be apparently satisfactory.[10]

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