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Annual reports (No. 2 of 2007

Committee Membership

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

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

Committee Address
Environment, Communications, Information Technology and the Arts Legislation Committee
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

Abbreviations

Report to the Senate

Introduction

1.1        By virtue of the operations of Senate Standing Order 25(20) and a Senate order of 17 November 2004,[1] 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 Water Resources.

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 reports tabled in the Senate during the period from 1 November 2006 to 30 April 2007 as required by standing order 25(21)(f). It also includes four reports tabled after 30 April 2007.

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 apply to annual reports for departments of state pursuant to subsection 63(2) and executive agencies pursuant to subsection 70(2) of the Public Service Act 1999. They also apply to prescribed agencies under section 5 of the Financial Management and Accountability Act 1997.

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. 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.[2]

1.6        Under section 48 of the Commonwealth Authorities and Companies Act 1997 (the 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.[3]

Purpose of annual reports

1.9        As stated in the Requirements, the primary purpose of annual reports 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. [4]

Reports referred to the Committee

1.10      This report reviews nine annual reports from agencies and the department within the Communications, Information Technology and the Arts portfolio, and six annual reports of agencies within the Environment and Water Resources portfolio.

1.11      The following reports have been referred to the committee:

Statutory authorities
Australian Broadcasting Corporation – Annual Report 2005-2006

Australian Sports Commission – Annual Report 2005-2006

National Environment Protection Council – Annual Report 2005-2006

Special Broadcasting Service – Annual Report 2005-2006

Reports on the operation of Acts
Australian Broadcasting Corporation – Equity and Diversity Annual Report 2005-2006

Australian Communications and Media Authority
Communications Report 2005-2006

Australian Competition & Consumer Commission
Telstra's compliance with price control arrangements 2005-2006
Changes in the prices paid for telecommunications services in Australia 2005-2006

Australian Postal Corporation (Australia Post) – Equal Employment Opportunity Report 2005-2006

Department of Communications, Information Technology and the Arts
Funding of Research and Consumer Representation in relation to Telecommunications Annual Report 2005-2006

Department of the Environment and Heritage (now Department of the Environment and Water Resources)
Australia State of the Environment 2006

National Heritage Council – Periodic Report March 2004-February 2007

Office of the Renewable Energy Regulator – Annual Report 2006

Report of the Review of the National Environment Protection Council Acts (Commonwealth, State and Territory), June 2007

Telstra Corporation – Equal Employment Opportunity Annual Report 2005-2006

Wet Tropics Management Authority – Annual Report and State of the Wet Tropics Report 2005-2006

1.12      Appendix 1 provides an alphabetical record in more detail, including:

• the basis under which the organisation operates, for example, department or statutory authority;
• dates indicating the progressive stages in presentation of the annual reports; and
• the date each report was tabled in, or deemed to be presented to, the Senate.

Remarks made in the Senate

1.13      As required under the terms of Standing Order 25(20)(d), the committee notes that, of the reports dealt with in this report, one annual report was the subject of comment in the Senate. Further detail is provided below.

• Special Broadcasting Service Corporation, Senator Faulkner, 8 November 2006.[5]

Timeliness

1.14      As noted above, the annual report requirements state that if a department is unable to meet the tabling deadline, an extension of time to report can be sought under the provisions of subsections 34C (4)-(7) of the Acts Interpretation Act 1901. 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.[6]

1.15      Four Statutory Authority annual reports reviewed in this report were tabled after the 31 October deadline. The terms of Section 9 of the CAC Act, require that annual reports be given to the responsible Minister by 15 October. The committee notes that four of the reports below did not meet this deadline:

• Australian Broadcasting Corporation
  This report was both provided to and received by the Minister on 20 October 2006 and was tabled in the Senate on 7 November 2006;
• Special Broadcasting Service Corporation
  The report was both provided to and received by the Minister on 18 October 2006 and was tabled in the Senate on 8 November 2006;
• Australian Sports Commission
  The report was provided to the Minister on 9 October 2006 and received by the Minister on 26 October 2006. The committee notes that the letter of transmittal in the report is dated 1 September 2006. The report was received out of session on 20 November 2006 and tabled in the Senate on 27 November 2006;
• National Environment Protection Council (NEPC)
  This report was provided to the Minister on 13 February 2007, received by the Minister on 14 February 2007 and tabled on 26 February 2007. The committee has previously noted advice from the Council that its enabling legislation requires it to include reports by each member of the Council (i.e. Commonwealth, State and Territory ministers) in its annual report, which leads to its report being tabled after 31 October each year. The committee has previously acknowledged that this timing would occur each year.[7]

1.16      The Requirements for Annual Reports states that 'where an agency's own legislation provides a timeframe for its annual report ... that timeframe applies. ... However, it remains the Government's policy that all annual reports should be tabled by 31 October.'[8] The committee encourages agencies to table annual reports in a timely manner.

Comments on annual reports

1.17      The committee comments on some of the annual reports referred to it for examination.

Australian Broadcasting Corporation (ABC)

1.18      The report notes some significant milestones during the reporting year with celebrations of long running programs such as Play School's 40^th anniversary, and coverage of a wide range of sporting events such as the 2006 Winter Paralympics in Turin and ABC Radio Sport coverage of the Commonwealth Games.

1.19      The report notes that additional funding provided for the 2006-09 triennium 'has eased the concerns express in last year's Annual Report'[9] and will provide for capital, the creation of quality Australian television content and enhanced regional and local programming.[10]

1.20      The report foreshadows a strategic review of operations which will inform the development of a new three-year Corporate Plan and the re-launch of the ABC's international satellite television services to be known as the Australia Network.

Australian Sports Commission (ASC)

1.21      During the reporting year, the ASC marked the twenty-fifth birthday of the AIS (Australian Institute of Sport) which has grown from supporting, initially, eight sports and approximately 150 scholarship holders to the current 34 programs in 26 sports, with up to 700 scholarship holders.[11]

1.22      The ASC has been involved in a range of sporting activities such as the Winter Olympics and Paralympics in Italy, the Commonwealth Games in Melbourne and the 2006 FIFA World Cup, as well as world championships and other major events such as boxing, slalom canoeing, cycling, equestrian and hockey.

1.23      The report records the roll-out of the Active After-school Communities program, operating in 1756 sites and involving approximately 90 000 children across Australia. The 7300 registered deliverers of the program include teachers and care centre staff, secondary and tertiary students, local club personnel and private providers.[12]

1.24      Two major projects–a new Recovery and Swimming Centre and the Sport Development and Education Centre–were completed at the AIS campus during the reporting period.

1.25      The report notes the primary role the ASC will perform since the establishment of the Australian Sports Anti-Doping Authority (ASADA) during the year, which is to require sports to have in place, maintain and enforce anti-doping policies that comply with the World Anti-doping Code and that have been approved by ASADA. These requirements are managed through the ASC's funding and recognition agreements with national sporting organisations. ASC also complements the ASADA education program.

Special Broadcasting Service (SBS)

1.26      The annual report notes the appointment of a new Managing Director, replacing Mr Nigel Milan at the expiration of his eight year term.

1.27      A corporate-wide organisation restructure implemented during the reporting year involved the strengthening or realignment of six key areas and the appointment of directors to these new divisions, i.e. Content Television and Online; News and Current Affairs; Commercial Affairs; Marketing; Technology and Distribution; and Strategy and Communications.[13]

1.28      The report notes the SBS Board decision in June 2006 to allow in-program advertising breaks which is anticipated to generate at least $10m additional advertising revenue in its first full year of operation.[14] It is anticipated that any impacts of this decision on audience satisfaction as well as revenue growth will be reported on in the next SBS Annual Report.

Periodic reports

1.29      Three periodic reports have been forwarded to the committee:

• Australia State of the Environment 2006, tabled 6 December 2006;
• Australian Heritage Council Periodic Report, March 2004–February 2007, tabled 12 June 2007; and
• Report of the Review of the National Environment Protection Council Acts (Commonwealth, state and Territory), June 2007, tabled 7 August 2007.

Australia State of the Environment 2006 (SoE2006)

1.30      Australia State of the Environment 2006 (SoE2006) is the third independent national stocktake of the Australian environment. The Environment Protection and Biodiversity Conservation Act 1999 and the Environment and Heritage Legislation Amendment Act 2003 require a report on Australia's environment every five years. This report covers the five-year period 2001 to 2006.

1.31      Amongst key findings, the report states that 'it is still impossible to give a clear national picture of the state of Australia's environment because of the lack of accurate, nationally consistent, environmental data' which has 'serious consequences for identification and management of Australia's biodiversity, coasts and oceans, and natural and cultural heritage'. [15]

1.32      The report notes that during the five-year reporting period steps have been taken to:

• bring an end to broad-scale vegetation clearing in most states and territories:
• reduce the total catch in Commonwealth-managed fisheries;
• increase no-take zones in the Great Barrier Reef Marine Park and Queensland's nearshore waters;
• create a number of marine protected areas in some state and territory waters;
• increase cooperation between governments and the community through regional environmental management arrangements;
• advance the water reform agenda, seeking improvements in water use and allocation;
• develop a consistent approach to threatened species listing and the protection of threatened species and ecological communities; and
• increase the active role in environmental stewardship by the philanthropic and business sectors.[16]

1.33      The report states the view of the 2006 Australian State of the Environment committee that this report 'must be the last state of environment report that starts with a committee-initiated process of indicator and data selection. Environmental data should be continuously updated and made publicly available on the web. ...Such a system will equip Australia with a national capacity to monitor and assess the conditions of the environment on an ongoing basis, not just every five years'.[17]

Australian Heritage Council Periodic Report, March 2004-February 2007

1.34      This is the first periodic report of the Council which was established in March 2004 under the Australian Heritage Council Act 2003 (AHC Act), replacing the Australian Heritage Commission.

1.35      The Council's main responsibilities are to:

• assess place for the National Heritage List and the Commonwe3alth Heritage List;
• nominate places for inclusion in these Lists;
• advise the Minister on various heritage matters;
• promote the identification, assessment, conservation and monitoring of heritage; and
• compile and maintain the Register of the National Estate.[18]

1.36      The Council notes that its responsibilities in relation to heritage nomination and assessment processes will significantly change under amendments to the EPBC Act and the AHC Act to come into effect early 2007 and which will streamline processes for National and Commonwealth Heritage listing, establishing a formal annual cycle of nominations and assessments.

1.37      However the Council states while supporting the amendments 'to the extent that they would streamline assessments, [it] opposed them in that they removed the Council's powers to initiate assessments and reserved them to the Minister. ...The Council believed that this is a significant flaw in the legislation'.[19]

1.38      The key role of the Council is to provide advice on the places of outstanding heritage value to the nation their protection by assessing nominations and advising the Minister. The Council also provides advice on policy formulation, financial incentives and heritage tourism initiatives.

Report of the Review of the National Environment Protection Council Acts (Commonwealth, State and Territory), June 2007

1.39      The National Environment Protection Council was established 'to make national environment protection standards, guidelines, goals and associated protocols'[20] – the National Environment Protection Measures (NEPMs).

1.40      The National Environment Protection Council Act 1994 (Cth) provided for a review of the operation of the NEPC Acts five years after the Act commenced. The first review, the McMichael Review of 2001, recommended that the NEPC Acts be reviewed every five years. Accordingly, this second review commenced in July 2006 to consider the operation, outcome and scope of the NEPC Acts and the National Environment Protection Measures.

1.41      This Review concludes 'that the core aspects of NEPC activity and processes are sound [and] are operating effectively given the range of issues and resources available'[21] but that there is scope for improvements to maximise NEPC outcomes.

Bodies not presenting annual reports to the Senate

1.42      Standing Order 25(21)(h) requires the committee to report to the Senate each year whether there are any bodies which do not present annual reports to the Senate which should present such reports. The committee is aware of no such body.

Summary

1.43      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.

1.44      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, except where noted above.

1.45      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
Chair

Appendix 1 – Annual reports referred to the Committee

Annual reports referred to the Standing Committee on Environment, Communications, Information Technology and the Arts
between 1 November 2006 and 13 June 2007

Communications, Information Technology and the Arts portfolio

Environment and Water Resources portfolio

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