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Report - Annual reports (No. 1 of 2007)

Membership of the Legislation Committee

Members

Senator Alan Eggleston, Chair (LP, WA)
Senator Andrew Bartlett, Deputy Chair (AD, QLD)
Senator Kate Lundy (ALP, ACT)
Senator the Hon Ian Macdonald (LP, QLD)
Senator the Hon Rod Kemp (LP, VIC)
Senator the Hon Michael Ronaldson (LP, VIC)
Senator Ruth Webber (ALP, WA)
Senator Dana Wortley (ALP, SA)

Participating Members

Senator Judith Adams (LP, WA)
Senator Lyn Allison (AD, VIC)
Senator Cory Bernardi (LP, SA)
Senator the Hon Ron Boswell (NATS, QLD)
Senator George Brandis (LP, QLD)
Senator Bob Brown (AG, TAS)
Senator George Campbell (ALP, NSW)
Senator Kim Carr (ALP, VIC)
Senator Grant Chapman (LP, SA)
Senator Stephen Conroy (ALP, VIC)
Senator Trish Crossin (ALP, NT)
Senator Christopher Evans (ALP, WA)
Senator the Hon John Faulkner (ALP, NSW)
Senator Alan Ferguson (LP, SA)
Senator Jeannie Ferris (LP, SA)
Senator Steve Fielding (FFP, VIC)
Senator Concetta Fierravanti-Wells (LP, NSW)
Senator Michael Forshaw (ALP, NSW)
Senator the Hon Bill Heffernan (LP, NSW)
Senator John Hogg (ALP, QLD)
Senator Gary Humphries (LP, ACT)
Senator Barnaby Joyce (NATS, QLD)
Senator Ross Lightfoot (LP, WA)
Senator Joseph Ludwig (ALP, QLD)
Senator Gavin Marshall (ALP, VIC)
Senator Brett Mason (LP, QLD)
Senator Julian McGauran (LP, VIC)
Senator Jan McLucas (ALP, QLD)
Senator Christine Milne (AG, TAS)
Senator Claire Moore (ALP, QLD)
Senator Fiona Nash (NATS, NSW)
Senator Kerry Nettle (AG, NSW)
Senator Kerry O'Brien (ALP, TAS)
Senator Marise Payne (LP, NSW)
Senator Robert Ray (ALP, VIC)
Senator Nigel Scullion (CLP, NT)
Senator Rachel Siewert (AG, WA)
Senator Natasha Stott Despoja, (AD, SA)
Senator John Watson (LP, TAS)
Senator Penny Wong (ALP, SA)

Committee Secretariat
Dr Ian Holland, Secretary
Ms Jacquie Hawkins, Research Officer

Committee Address
Senate Standing Committee on the Environment, Communications, Information Technology and the Arts
PO Box 6100
Parliament House
Canberra ACT 2600

Tel: 02 6277 3526

Fax: 02 6277 5818

Email: ecita.sen@aph.gov.au

Internet: http://www.aph.gov.au/senate/committee/ecita_ctte/index.htm

Report to the Senate

Introduction

1.1        By virtue of the operations of standing order 25(20) and a Senate order of 17 November 2004, the Senate refers to this Committee for examination and report the annual reports of departments and agencies of the following two portfolios:

• Communications, Information Technology and the Arts; and
• Environment and Heritage.

1.2        Standing order 25(20) requires that the Committee shall:

1. Examine each annual report referred to it and report to the Senate whether the report is apparently satisfactory.
2. 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.
3. Investigate and report to the Senate on any lateness in the presentation of annual reports.
4. In considering an annual report, take into account any relevant remarks about the report made in debate in the Senate.
5. If the committee so determines, consider annual reports of departments and budget-related agencies in conjunction with examination of estimates.
6. 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.
7. Draw to the attention of the Senate any significant matters relating to the operations and performance of the bodies furnishing the annual reports.
8. 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 2006 as required by standing order 25(20)(f).

Annual reporting requirements

1.4        On 21 June 2006 the Joint Committee of Public Accounts and Audit (JCPAA) agreed to revised Requirements for Departmental Annual Reports put forward by the Department of Prime Minister and Cabinet. The Requirements are prepared pursuant to subsections 63(2) and 70(2) of the Public Service Act 1999.

1.5        Under the Requirements, annual reports of departments and executive and prescribed agencies must 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.[1] These provisions provide for the secretary to advise the responsible minister of the reasons for the slippage. The responsible minister is to table this explanation in the Parliament on the next available sitting day.

1.6        Under section 48 of the Commonwealth Authorities and Companies Act 1997 (CAC Act), the Minister for Finance outlines the annual reporting requirements for Commonwealth authorities and companies in the Commonwealth Authorities and Companies (Report of Operations) Orders 2002. 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.

1.7        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.

1.8        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.[2]

Apparently satisfactory

1.9        The terms of standing order 25(20)(a) require 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

1.10      As stated in the Requirements[3], the primary purpose of annual reports of departments is accountability, in particular to the Parliament. 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

1.11      The following annual reports have been referred to the Committee:

Departments and executive and prescribed agencies

Department of Communications, Information Technology and the Arts – Annual Report 2005-06

Department of the Environment and Heritage – Annual Report 2005-06 and Legislation Annual Reports 2005-06 including reports on the operation 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;
• Protection of Moveable Cultural Heritage Act 1986; and
• Water Efficiency Labelling and Standards Act 2005.

Bureau of Meteorology – Annual Report 2005-06

National Archives of Australia and National Archives of Australia Advisory Council – Annual Report 2005-06

Statutory authorities

Australia Council – Annual Report 2005-06
Australian Communications and Media Authority – Annual Report 2005-06
Australian Film Commission – Annual Report 2005-06
Australian Film Television and Radio School – Annual Report 2005-06
Australian National Maritime Museum – Annual Report 2005-06
Australian National Maritime Museum – Strategic Plan 2006-09
Australian Sports Anti-Doping Authority – Annual Report 2005-06
Australian Sports Commission – Strategic Plan 2006-09
Director of National Parks – Annual Report 2005-06
Great Barrier Reef Marine Park Authority – Annual Report 2005-06
National Gallery of Australia – Annual Report 2005-06
National Library of Australia – Annual Report 2005-06
National Museum of Australia – Annual Report 2005-06
Office of the Renewable Energy Regulator –Financial Annual Report 2005-06
Sydney Harbour Federation Trust – Annual Report 2005-06

Non-statutory body

Public Lending Right Committee – Annual Report 2005-06

Government business enterprises

Australian Postal Corporation (Australia Post) – Annual Report 2005-06
Australian Postal Corporation (Australia Post) – Statement of corporate intent 2006-07 to 2008-09
Telstra Corporation – Annual review/report 2006

Commonwealth companies

Australia Business Arts Foundation – Financial Statements For Year Ended 30 June 2006
Bundanon Trust – Annual Report 2005-06
Film Australia – Annual Report 2005-06
Film Finance Corporation Australia – Annual Report 2005-06
NetAlert – Annual Report 2005-06

Reports on the operation of Acts

ACCC Telecommunications reports 2005-06:
Telstra’s compliance with the price control arrangements: 1H 2005-06

Telecommunications competitive safeguards for 2004-05;
Changes in the prices paid for telecommunications services in Australia 2004-05

Competition in the corporate customer segment of the telecommunications industry: January - December 2005

Australian Greenhouse Office
Energy use in the Australian Government's Operations – Report for 2005

Department of Communications, Information Technology and the Arts:
Telecommunications Carrier Industry Development Plans
Final Report July 2004 to September 2005

Report on the Online Content Co-Regulatory Scheme –
Reporting period 12: July to December 2005

Operation of the Prohibition on Interactive Gambling Advertisements
Reporting period: January-December 2005

Supervising Scientist – Annual Report 2005-06

1.12      Appendix 1 provides an alphabetical 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

1.13      All 2005-06 annual reports examined in this report were timely in their presentation to the Parliament.

1.14      Eight reports covering different reporting periods were tabled in the reporting cycle period:

• ACCC telecommunications reports 2004-05:
  Report 1. Telecommunications competitive safeguards
  Report 2. Changes in the prices paid for telecommunications services in Australia
  (tabled 20 June 2006)

Competition in the corporate customer segment of the telecommunications industry: January-December 2005
(tabled 5 September 2006)

• Australian National Maritime Museum—Strategic Plan 2006-2009
  (tabled 13 June 2006)

• Australian Sports Commission—Strategic Plan 2006-09
  (tabled 20 June 2006)

• Department of Communications, Information Technology and the Arts:
  Report on the Online Content Co-Regulatory Scheme –
  Reporting period 12: July to December 2005
  (tabled 9 May 2006)[4]

Telecommunications carrier industry development plans—Final report for period July 2004 to September 2005
(tabled 9 May 2006)

Operation of the Prohibition on Interactive Gambling Advertisements Reporting period: January-December 2005
(tabled 13 June 2006)

• Office of the Renewable Energy Regulator –Annual Report for 2005 on the operation of the Renewable Energy (Electricity) Act 2000
  (tabled 13 June 2006)

1.15      In relation to the annual report of the Office of the Renewable Energy Regulator (ORER), the Committee notes that it reports on the working of the Act on a calendar year basis under section 105 of the Renewable Energy (Electricity) Act 2000.

Remarks made in the Senate

1.16      Under the terms of Senate standing order 25(20)(d), the Committee notes that several senators made comment in the Senate on annual reports as set out below:

• Senator Milne commented on the annual report of the Office of the Renewable Energy Regulator;[5]
• Senator Bartlett commented on the annual reports of the Great Barrier Reef Marine Park Authority,[6] the Department of the Environment and Heritage,[7] and the Director of National Parks;[8]
• Senator Watson commented on the annual report of the Bureau of Meteorology;[9]
• Senator Faulkner commented on the annual report of the Special Broadcasting Service Corporation;[10] and
• Senator Ian Macdonald commented on the annual report of the Bureau of Meteorology.[11]

Comment on certain annual reports

1.17      The Committee makes comment on the annual reports of the two portfolio departments referred to it for examination and several reports from agencies within each portfolio.

Communications, Information Technology and the Arts Portfolio

Department of Communications, Information Technology and the Arts (DCITA)

1.18      The annual report notes that the continuing challenges and opportunities brought about the convergence of technologies and fast moving markets and

The increasing impact of technological convergence and the rising importance of content, particularly digital content, for programs across the Portfolio's areas of responsibility [which] enabled the Department and the wider Portfolio to reinforce internal synergies while, at the same time, strengthening linkages with other areas of government.[12]

1.19      The report itemises a number of policy development and review activities undertaken during the year under review, including:

• the review of the telecommunications regulatory regime;
• legislation enacted enabling the sale of the Government's remaining shares in Telstra;
• steps taken to maintain a local presence in regional, rural and remote Australia;
• release of policy papers on the commercial broadcasting licence moratorium, spectrum allocation, High Definition television and multi-channelling and a discussion paper on media reform options;
• adoption of a report on Voice over Internet Protocol services;
• finalisation of a review of content delivered over convergent devices such as 3G mobile phones and subscription based internet portals, and
• the development of measures to protect families from exposure to offensive content in the online environment.

1.20      Such activities also were carried out in the cultural sector, including finalisation of the Digital Content Industry Action Agenda; and reviews of

• film incentives and funding;
• the governance and operational arrangements of the two specialist opera and ballet orchestras;
• the Australian National Academy of Music and the Australian Youth Orchestra which identified key directions for elite classical music performance training.

1.21      In the sports sector, the Australian Sports Drug Agency was replaced by the newly established Australian Sports Anti-Doping Authority as the central organisation in Australia's anti-doping activities.

1.22      The annual report highlights the department's involvement in the 2006 Commonwealth Games, as lead agency coordinating Australian Government financial support and services for the event.

1.23      Through its Indigenous programs, the department provides support for a wide range of activities such as its Indigenous arts and culture programs, Indigenous sport and recreation programs and Indigenous broadcasting program. The report notes that the department is increasing participating in Shared Responsibility Agreements with Indigenous communities and that demand for funding remains high.

1.24      The reports foreshadows a number of activities in the coming year, including:

• work on an effective Broadband Blueprint and delivery of the Connect Australia package;
• development of legislation for a new media framework and finalisation of the Digital Action Plan;
• securing and maintaining a safe and secure online environment;
• review of the E-Security National Agenda;
• increasing sustainability for cultural organisations;
• finalising a review of Australian Government film funding programs; and
• a proposed review of sport funding.

Australian Communications and Media Authority (ACMA)

1.25      This is ACMA's first annual report since it was formed on 1 July 2005, as a result of the merger of the Australian Broadcasting Authority and the Australian Communications Authority.

1.26      The report notes that ACMA has completed to a large extent the formal transition from the two former regulators.[13] The new corporate structure, introduced on 1 February 2006, is

designed to better reflect the converging nature of the communications environment and provide stakeholders with access to a more cohesive arrangements of responsibilities. It aligns ACMA's operations to reflect, firstly, regulatory 'inputs' to industry (including allocation and planning spectrum, numbering, lice sing and technical standards) and, secondly, the function 'outputs' from industry that are regulated (including codes, content standards, investigations and consumer issues).[14]

1.27      The report notes a number of ACMA activities during the year, including:

• management of Australia's radiofrequency spectrum;
• the significant role played by ACMA staff providing on-site guidance and support to the Commonwealth organisers on the operation of telecommunications and radio communications equipment;
• investigation into a matter concerning possible non-compliance with the ownership and control provisions under the Broadcasting Services Act 1991;
• completed its first prosecution under the Spam Act 2003 in the Federal Court, Perth;
• a review of investigative procedures to both expedite the complaint resolution process and improve procedural fairness;
• issues surrounding network security and integrity which are fundamental to the continued take-up of e-business and business use of technology;
• working with industry on the development, review, registration and monitoring of compliance with industry and consumer codes and standards across telecommunications, broadcasting and the internet; and
• the development of the national Do Not Call Register.

National Museum of Australia (NMA)

1.28      The Director's review of operations advises that the Museum has continued the implementation of the four-year Collections and Gallery Development Plan, which addresses issues raised in the 2003 Review of Exhibitions and Public Programs, including improved signage and navigational materials; new modules and displays in permanent galleries and preparatory work for the redevelopment of two galleries: Creating a Country and Australian Journeys.[15]

1.29      The report notes that collection storage remains a crucial issue and plans for upgraded facilities are under way.

1.30      The report indicates that visitor numbers to the Museum have increased, as has the number of visitors to the Museum's website, both totals exceeding the target figures.

Australian Sports Anti-Doping Authority (ASADA)

1.31      This is the first annual report for ASADA which assumed the roles and functions of the Australian Sports Drug Agency (ASDA) on 14 March 2006. The report incorporates the report of operations of ASDA.

1.32      ASADA was established with extensive new functions of investigations, presenting cases at hearings, sanction recommendation and the development, approval and monitoring of sporting organisations' anti-doping policies.[16]

1.33      ASADA undertook its first investigation during the Commonwealth Games in March 2006 following allegations of doping within the sport of weightlifting.

1.34      To broaden the fight against doping in Australian sport, ASADA has launched its Stamp Out Doping Hotline which allows athletes, support persons and the public to refer information about doping directly to ASADA investigators.

1.35      The annual report notes that in the reporting year, ASADA undertook its largest ever drug testing program as part of its Doping Control program and recorded 27 entries on the Register of Notifiable Events/Register of Findings.[17]

Environment and Heritage Portfolio

Department of the Environment and Heritage (DEH)

1.36      The annual report notes the wide range of activities undertaken by the department in the reporting period, including:

• saving water, through programs such as Community Water Grants under which over $55 million was provided for 1750 community-based projects;
• developing marine protected areas;
• responding to climate change through investment in carbon dioxide capture and storage and renewable energy technologies;
• conserving Tasmania's forests;
• protecting cultural heritage; and
• supporting environmental research including in Antarctica through the construction of an ice runway which is scheduled to commence regular intercontinental flights in 2007.

1.37      The report foreshadows further development of such programs as the Natural Heritage Trust and the National Action Plan for Salinity and Water Quality, applying established and emerging science and monitoring changes to the condition of natural resources.

1.38      The department will also participate in policy debates on issues such as the use of nuclear energy and future efforts to address climate change.

1.39      The third State of the Environment Report, flagged in the department's last annual report and due to be released later in the year, 'will provide a crucial guide to current and emerging environment and heritage issues and will help shape the agenda for future policy development'.[18]

Bureau of Meteorology

1.40      Through regular forecasts, warnings, monitoring and advice spanning the Australian and Antarctic region, the Bureau provides one of the most basic and widely used services of government.[19]

1.41      The annual report records a number of notable Bureau achievements during the year under review, including:

• progress towards establishing an Australian Tsunami Warning System in collaboration with Geoscience Australia and Emergency management Australia;
• installation of new radar facilities as part of the Radar Network and Doppler Services Upgrade Project;
• commencement of a SunSmart UV alert service, in collaboration with the Cancer Council Australia and the Australian Radiation Protection and Nuclear Safety Agency;
• recognition of the Bureau's website as the most popular government website and nationally the most popular Australian education reference website of 2005; and
• work in collaboration with CSIRO on the Australian Community Climate and Earth System Simulator, a new generation earth system simulator for examining, inter alia, climate change issues.

1.42      While noting that the Bureau reached and exceeded many of its performance targets, the reports cautions that

these targets do not convey the vulnerability of operations in the medium to longer term under present budget arrangements and with increasing demands for services. Careful consideration will need to be given to realigning targets to reflect the Bureau's real capacity to meet community expectations with current resource levels.[20]

Great Barrier Reef Marine Park Authority (GBRMPA)

1.43      The annual report notes that the Park continued to be under pressure from a wide range of human and natural impacts. However, it notes that measures put in place by the Authority in response to these pressures have been copied or adapted elsewhere.[21]

1.44      The report notes that the Australian Government is conducting a review of the Great Barrier Reef Marine Park Act 1975 in conjunction with the whole of government review of statutory authorities, which is expected to be completed later in the year.

1.45      During the year under review GBRMPA has been engaging the community and industry, involving Traditional Owners in managing sea country, implementing the 2004 Zoning Plan and overseeing water quality protection and climate change impacts.

1.46      GBRMPA is involved in the implementation of the Reef Water Quality Protection Plan and continues its annual coral bleaching monitoring program.

1.47      Of particular note is the accreditation of the first Traditional Use of Marine Resources Agreement (TUMRA) between GBRMPA and the Girringun community, also accredited by the Queensland Government through the Queensland EPA.

1.48      The TUMRA, the first legal agreement between Traditional Owners and GBRMPA, provides a benchmark for cooperative management of sea country and includes voluntary conservation actions including hunting. Steps are being taken to develop TUMRAs with more of the 70 identified Indigenous clan groups in the Great Barrier Reef region.

General comments

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

1.50      The Committee again commends those agencies that have continued to include both a general index and a compliance index in their annual reports this year, although the inclusion of a compliance index is no longer a requirement. It considers the inclusion of a compliance index to be a useful tool for accountability purposes.

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 commendably high standard of presentation. They generally met the requirements of the various guidelines that apply to them and were timely in their presentation to the Parliament.

1.52      Accordingly, the Committee is pleased to report its finding that the annual reports referred to it for examination and tabled in the period under examination were apparently satisfactory.

Senator Alan Eggleston
Chairman

Appendix 1 – Annual reports referred to the Committee

Communications, Information Technology and the Arts portfolio

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