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CONTENTS
Commonwealth Services Delivery Agency Bill
1996
Date Introduced: 4 December 1996
House: House of Representatives
Portfolio: Social Security
Commencement: 1 July 1997
The Bill will establish the Commonwealth Services Delivery
Agency that will principally combine the functions of the
Commonwealth Employment Service and the Department of Social
Security in relation to the provision of services to the
unemployed. The Agency will also deal with other matters, including
the provision of childcare cash rebates. The Bill also provides
that additional functions may be given to the Agency.
Currently, assistance to members of the public is provided by a
range of government bodies, including the Department of Social
Security; the Department of Employment, Education, Training and
Youth Affairs; the Department of Health and Family Services; and
the Department of Veterans' Affairs. The wide range of agencies can
cause both confusion and inconvenience for those seeking to use
their services or apply for benefits. The usual example given is
that of the unemployed. Such people are currently required to
register with the Commonwealth Employment Service, which also
offers assistance in employment placement, although the role of the
Commonwealth in this area will be substantially changed if the
Reform of Employment Services Bill 1996 is passed, and then go to a
social security office to register for the Jobsearch or Newstart
allowances. This is not only inconvenient for the person, but can
also result in greater cost to the Commonwealth.
However, the advantage in the current system is that the people
dealing with applicants are more specialised in their particular
field as, for example, an employee at a social security office will
only deal with social security matters. Given the complexity of the
Social Security Act 1991 and the guidelines for its
implementation, which consists of three volumes plus a handbook, it
may be argued that there is a need for greater, rather than less,
specialisation. It should also be noted that with the changes to
employment assistance for those requiring intensive employment
assistance, which will be provided by either the proposed Public
Employment Placement Enterprise or private employment placement
enterprises, there will still be a need for such people to go to
more than one agency.
It was announced in the 1996-97 Budget that a new agency would
be established to deal with:
- income support payments administered by the Department of
Social Security;
- the registration, assessment and referral functions carried on
by the Commonwealth Employment Service;
- student assistance payments administered by the Department of
Employment, Education, Training and Youth Affairs; and
- Childcare Assistance and the Childcare Cash rebate, currently
administered by the Department of Health and Family
Services.(1)
The Minister notes in the second reading speech to the Bill that
there is the potential for the areas covered by the agency to
expand over time.
The explanatory memorandum to the Bill estimates that the
measures contained in the Bill will cost $23.7 million in 1996-97
and save $25.1 million in 1997-98, $53.6 million in 1998-99 and
$66.2 million in 1999-2000.
The Commonwealth Services Delivery Agency (the Agency) will be
established by clause 6 and is to consist of the
Board, a Chief Executive Officer (CEO) and the Agency's staff.
The CEO will be able to enter into arrangements with
Commonwealth authorities (ie. a Department or other body
established for a public purpose) for the provision of the services
specified in the agreement (clause 7).
The functions of the Agency will be:
- to provide services specified in agreements;
- any functions conferred on the Agency by other Acts;
- any function that the Minister directs the Agency to perform
(the instrument directing the Agency will be disallowable by either
House of Parliament); and
- anything incidental to the Agency's functions (clause
8).
The Minister may give the Agency directions regarding the
performance of its functions (clause 9), and must
consult with the Board prior to giving it a direction
(clause 10).
There is to be a Board of Management of the Agency, which will
be established by clause 11 and
will have the functions of determining the Agency's goals,
priorities, policies and strategies; and to ensure that the
Agency's functions are performed efficiently (clause
12). The Minister may give the Board directions relating
to the performance of it's functions; the conduct of it's meetings;
and the terms and conditions of employment of the CEO. Such
directions are to be published in the Agency's annual report and
must be complied with by the Board. Directions will not be subject
to disallowance by Parliament (clause 13).The
Minister may also advise the Agency of government policy and the
Board of the Agency will be obliged to follow this policy
(clause 14). The Minister will also have power to
require the Agency to provide information (clause
15).
Membership of the Board is dealt with in clause
16. There is to be a Chairman, the CEO and at least 4
other members. At least 2 of the other members are not to be the
head of Commonwealth Departments or authorities and members are to
be appointed by the Minister. The maximum term of appointment is
three years, although members of the Board will be eligible for
re-appointment. However, if the member is the head of a
Commonwealth Department or Authority the term of the appointment
will be at the Minister's discretion (clause 23).
The termination of members of the Board is dealt with in
clause 28. Appointments may be terminated on the
following grounds:
- misbehaviour or physical or mental incapacity;
- the member becomes bankrupt or takes advantage of laws relating
to arrangements with creditors or assigns their remuneration to a
creditor/s;
- without reasonable excuse fails to comply with the disclosure
of interest rules (see below);
- is absent, without reasonable excuse, from three or more
consecutive meetings of the Board; or
- in the Minister's opinion, has performed their functions on the
Board in an unsatisfactory manner for a significant period.
There is no requirement that that members of the Board have
expertise in the delivery of services to the unemployed or other
disadvantaged groups.
The Board may delegate all or any of its functions to employees
of the Agency (clause 18).
Other provisions of the Bill are largely administrative, the
major ones relate to:
- the Board is to hold such meetings as are necessary for the
performance of it's functions and the Minister may require a
meeting at any time (clause 20);
- members of the Board are to disclose if they have a pecuniary
interest in a matter before the Board and, unless the Board
otherwise determines, is not to be present during the making of a
decision in relation to the matter (clause
21);
- the position of CEO is to be established by clause
29, and is to be appointed by the Board after consultation
with the Minister. The Board is also to determine the terms and
conditions of the CEO although, as noted above, the Minister may
give the Board directions in regard to this matter. The Board may
terminate the appointment of the CEO at any time (clause
30);
- staff are to be employed under the Public Service Act
1922 (clause 35);
- the Audit Act 1901is to apply to the Agency
(clause 39); and
- the Agency is to provide an annual report (clause
40).
- 1996-97 Budget Paper No. 1, p. 3-122.
Chris Field
26 February 1997
Bills Digest Service
Information and Research Services
This Digest does not have any official legal status. Other
sources should be consulted to determine whether the Bill has been
enacted and, if so, whether the subsequent Act reflects further
amendments.
IRS staff are available to discuss the paper's contents
with Senators and Members and their staff but not with members of
the public.
ISSN 1323-9031
Commonwealth of Australia 1996
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Published by the Department of the Parliamentary Library,
1997.
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Commonwealth of Australia
Last updated: 8 April 1997
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