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Members of the Committee

Substitute members – Senator Natasha Stott Despoja

Secretariat Address:

SG.52
Parliament House
CANBERRA ACT  2600

Phone: (02) 6277 3520
Fax: (02) 6277 5706
E-mail: eet.sen@aph.gov.au
Website: www.aph.gov.au/senate_employment

Table of Contents

Members of the Committee

Introduction

Terms of reference
Annual reports referred
Method of assessment
General comments on reports
Comments made in the Senate
Departmental reports
Statutory authorities reports
Annual reports on the operations of acts
Bodies not presenting annual reports to the Senate

Appendix 1 – Allocation of annual reports

Education, Science and Training portfolio
Employment and Workplace Relations portfolio

Appendix 2 – List of annual reports referred

Appendix 3 – Guidelines

Departmental reports
Commonwealth authorities and companies
Non-statutory bodies

Appendix 4 – extension of time for presentation

National Occupational Health and Safety Commission

Introduction

Terms of reference

1.1       On 24 August 1994, the Senate adopted the following procedural orders relating to the functions of legislation committees and, in particular, their role in relation to annual reports[1]:

25(21) Annual report of departments and agencies shall stand referred to the legislation committees in accordance with an allocation of departments and agencies in a resolution of the Senate. Each 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; and
8. report to the Senate each year whether there are any bodies which do no present annual reports to the Senate and which should present such reports.

1.2       In accordance with resolutions of the Senate relating to the allocation of departments and agencies to committees by the Senate in the 41^st Parliament on 17 November 2004, the Employment, Workplace Relations and Education Legislation Committee has responsibility for the oversight of the following portfolios:

• education, science and training; and
• employment and workplace relations.[2]

Annual reports referred

1.3       In accordance with Senate Standing Order 25 (21)(f) this report examines those annual reports referred to the committee between 1 November 2004 to 30 April 2005. Tabling details of the annual reports falling within the scope of the committee is set out in Appendix 1.

1.4       During this period, a corrigendum from a department, six annual reports of statutory authorities and two reports on the operation of legislation were received. There were no reports from non-statutory bodies referred in this reporting period. These reports are listed in Appendix 2.

Method of assessment

1.5       The Senate Order referred to previously requires that the committee examine the reports referred to it to determine whether they are timely and ‘apparently satisfactory’. In forming its assessment the committee has considered whether the reports comply with the relevant guidelines for the preparation of annual reports:

• for portfolio departments, sections 63(2) and 70(2) of the Public Service Act 1999, and the Requirements for Departmental Annual Report, for Departments, Executive Agencies and FMA Act Bodies, Department of Prime Minister and Cabinet, revised June 2005.
• for Commonwealth authorities and companies, the Commonwealth Authorities and Companies Act 1997 including sections 9, 36 and 48.
• for non-statutory bodies, the guidelines contained in the Government response to the Senate Standing Committee on Finance and Public Administration Report on Non-Statutory bodies, Senate Hansard, 8 December 1987,
  pp. 2643-45

1.6       With the exception of the Requirements for Departmental Annual Reports, these requirements are printed under Appendix 3.

General comments on reports

1.7       The committee has agreed, under the terms of the procedural order requiring it to report to the Senate on Annual Reports, that all reports described here are apparently satisfactory. In making this assessment, the committee considers aspects such as the timeliness of presentation and compliance with relevant reporting requirements. The reports are generally of a high standard in layout and in the extent of information presented. All reports meet the requirement of being apparently satisfactory.

1.8       All reports have been lodged with the appropriate minister on time, and have met the reporting requirements. The committee notes that a reporting agency requested an extension of time to present.

1.9       During questioning in the Budget Estimates 2005-06 the Department of Education, Science and Training was asked why the Higher Education Report for a Triennium had not been presented during this reporting period. The committee was informed that the Higher Education Report for a Triennium would be produced in a different format and would be provided as soon as it was available.[3]

Comments made in the Senate

1.10      The committee is obliged, under Senate Standing Order 25 (21)(d) to consider any remarks made about these reports in the Senate. Where comments have been made they are referred to in the section below on comments on individual reports.

Departmental reports

Employment and Workplace Relations portfolio

• Corrigendum to Department of Employment and Workplace Relations
  Annual Report 2003–04

1.11      This was reported in the Report on Annual Reports no. 1 of 2005 to correspond with the department's annual report tabled earlier. The committee notes that corrigendum replaces page 73 of the department's annual report. This corrigendum corrects figures supplied in the annual report for the customer service line.

Statutory authorities reports

Education, Science and Training portfolio

• Anglo-Australian Observatory Annual Report 2003-2004
• Australian Research Council Strategic Plan 2005-2007
• Commonwealth Scientific and Industrial Research Organisation 2003-04

1.12      The report of the CSIRO leads with some detail of the 2003-07 strategic plan, centred on six strategic goals. The implementation of these goals complements the implementation of the six National Research Flagships. An addition of, $305 million will be provided over seven years to fund these Flagships Initiative under Backing Australia's Ability.[4]

1.13      The committee has had access to this report for consideration of the additional estimates in February and Budget estimates in June. Changes to CSIRO program structures and research priorities, among other matters, were canvassed then and reported on in the committee's estimates reports.

Employment and Workplace Relations portfolio

• Indigenous Business Australia 2003-2004

1.14      Indigenous Business Australia was transferred from the Immigration and Multicultural and Indigenous Affairs portfolio to the Employment and Workplace Relations portfolio by the Government in 2004 as part of the restructuring of indigenous affairs. This is the first report from IBA to be considered by this committee.[5]

1.15      The committee notes the success of IBA and its continuing commitment to prudent investment in commercial projects leading to long-term economic advancement for indigenous people. There are issues which are likely to attract increased interest from committee members in future.

• Equal Opportunity for Women in the Workplace Agency Annual Report 2003-2004
• National Occupational Health and Safety Commission Annual Report 2003-2004

1.16      The committee notes that an extension of time to present its Annual Report 2003-2004 was sought by NOHSC in accordance with section 9 of the Commonwealth Authorities and Companies Act 1997. The letter is attached under Appendix 4.

1.17      The committee also notes that legislation is before Parliament to abolish NOHSC. It will be replaced by a body established with DEWR, where it will remain subject to this committee's scrutiny.

Annual reports on the operations of acts

Employment and Workplace Relations portfolio

• Agreement making in Australia under the Workplace Relations Act 2002 and 2003
• Report to the Commonwealth made under section 24 of the Air Passenger Ticket Levy (Collection) Act 2001 – for the period 1 April 2003 to 31 March 2004

1.18      Senator Bartlett referred to this report in the Senate on 9 February 2005.

Bodies not presenting annual reports to the Senate

1.19      The committee is required to report to the Senate each year on whether there are any bodies which do not present annual reports to the Senate and which should present such reports.

1.20      The committee is satisfied that there are no bodies, within these portfolios, which do not meet their reporting requirements to the Senate in this reporting period.

Senator J Troeth
Chair

Appendix 1 – Allocation of annual reports

of Commonwealth bodies to legislation committees

Education, Science and Training portfolio

• Anglo-Australian Telescope Board – Anglo Australian Observatory
• Australian Institute of Aboriginal and Torres Strait Islander Studies
• Australian Education Council (Ministerial Council on Education, Employment, Training and Youth Affairs) (National Report on Schooling)
• Australian Institute of Marine Science
• Australian National Training Authority
• Australian National University
• Australian Nuclear Science and Technology Limited
• Australian Research Council
• Commonwealth Scientific and Industrial Research Organisation
• Department of Education, Science and Training
• Higher Education Report for a Triennium
• National Board of Employment, Education and Training
• Operation of section 14 of the Higher Education Funding Act 1988 and the Higher Education Contribution Scheme (Higher Education Council)
• Report on determinations made under the Higher Education Act 1988
• States Grants (Primary and Secondary Education Assistance) Act 1996 - Financial assistance granted to States

Employment and Workplace Relations portfolio

• Australian Industrial Relations Commission and Australian Industrial Registry
• Coal Mining Industry (Long Service Leave Funding) Corporation
• Comcare Australia and QWL Corporation Pty Limited
• Defence Force Remuneration Tribunal[6]
• Department of Employment and Workplace Relations
• Agreement making under the Workplace Relations Act 1996
• Developments made under the Workplace Relations Act 1996
• Office of the Employment Advocate
• Equal Opportunity for Women in the Workplace Agency
• Industrial Chemicals (Notification and Assessment) Act 1989 - National Industrial Chemicals Notification and Assessment Scheme
• National Occupational Health and Safety Commission
• Safety, Rehabilitation and Compensation Commission
• Seafarers Safety, Rehabilitation and Compensation Authority

Appendix 2 – List of annual reports referred

List of Annual reports referred by the Senate to the Committee during the period 1 November 2004 to 30 April 2005.

Education, Science and Training portfolio

* Reports presented to the President out of session.

Employment and Workplace Relations portfolio

*          Reports presented to the President out of session.
**        Reported in last Report of Annual Reports

Appendix 3 – Guidelines

Departmental reports

The requirements for departmental annual reports are included in the Requirements for Departmental Annual Reports[7], Department of the Prime Minister and Cabinet, revised June 2005, approved to by the Joint Committee of Public Accounts and Audit, and also in sections 63 and 70 of the Public Service Act 1999. The sections of this Act which specify the requirements in regard to timeliness of annual reports are reproduced below.

S 63 (1) After the end of each financial year, the Secretary of a Department must give a report to the Agency Minister, for presentation to the Parliament, on the Department's activities during the year.

(2) The report must be prepared in accordance with guidelines approved on behalf of the Parliament by the Joint Committee of Public Accounts and Audit.

S 70 (1) After the end of each financial year, the Head of an Executive Agency must give a report to the Agency Minister, for presentation to the Parliament, on the Agency's activities during the year.

(2) The report must be prepared in accordance with guidelines approved on behalf of the Parliament by the Joint Committee of Public Accounts and Audit.

The Requirements for Departmental Annual Reports specify that annual reports of departments, executive and prescribed agencies must be tabled by 31 October. In the event a department cannot meet this deadline the secretary is required to advise the responsible minister of the reason, the expected tabling date and what action is proposed so that the deadline will be met for the following year’s annual report. The responsible minister is to table this explanation in the Parliament on the next available sitting day.

Commonwealth authorities and companies

The Commonwealth Authorities and Companies Act 1997 contains detailed rules about reporting and accountability for Commonwealth authorities and Commonwealth companies. Commonwealth companies also must meet other reporting requirements as set out in Corporations Law.

Relevant sections of the Commonwealth Authorities and Companies Act 1997 for annual reports are set out below.

Part 3 – Reporting and other obligations for Commonwealth authorities

Schedule1, Part 3, Division 1, Section 7

Section 7 Meaning of Commonwealth Authority

1. In this Act, Commonwealth authority means either of the following kinds of body that holds money on its own account:
   1. a body corporate that is incorporated for a public purpose by an Act;
   2. a body corporate that is incorporated for a public purpose by:
      1. regulations under an Act; or
      2. an Ordinance of an external Territory (other than Norfolk Island) or regulations under such an Ordinance;
   and is prescribed for the purposes of this paragraph by regulations under this Act.

Schedule1, Part 3, Division 2, Section 9

Section 9 Directors must prepare annual report

1. The directors of a Commonwealth authority must:
   1. prepare an annual report in accordance with Schedule 1 for each financial year; and
   2. give it to the responsible Minister by the deadline for the financial year
   The deadline is the 15^th day of the 4^th month after the end of the financial year.
   
   
2. The responsible Minister must table the report in each House of the Parliament as soon as practicable.

Note: The Acts Interpretation Act 1901 limits the term ‘as soon as practicable’ to 15 sitting days from receipt (s.34C(3)).

Part 4 – Reporting and other obligations for Commonwealth companies

Schedule1, Part 4, Division 1, Section 34

Section 34 Meaning of Commonwealth company and wholly owned Commonwealth company

1. In this Act, Commonwealth company means a Corporations Law company in which the Commonwealth has a controlling interest.
   
   However, it does not include a company in which the Commonwealth has a controlling interest through one or more interposed Commonwealth authorities or Commonwealth companies.
   
   
2. In this Act, wholly-owned Commonwealth company means any Commonwealth company, other than a company any of the shares in which are beneficially owned by a person other than the Commonwealth.

Schedule1, Part 4, Division 2, Section 36

Section 36 Annual Report

1. (1) At least 14 days before each annual general meeting, a Commonwealth company must give the responsible Minister:  (a) a copy of the company's annual report that includes the company's annual general meeting documents (or, if there is no such annual report, a copy of the company's annual general meeting documents); and   (b) any additional report under subsection
   
   For this purpose, annual general meeting documents means the documents relating to a financial year that the company is required by the Corporations Law to lay before its annual general meeting.
   
   
3. If the Commonwealth company is a wholly-owned Commonwealth company, the responsible Minister must table the documents in each House of the Parliament as soon as practicable after receiving them. In all other cases, the Minister must table the documents in each House of the Parliament as soon as practicable after the annual general meeting of the company.

Schedule1, Part 1, Section 1

Part 1 - Contents of annual report

Section 1 Summary of contents

The annual report must include:

1. a report of operations, prepared by the directors in accordance with the Finance Minister’s Orders; and
2. financial statements, prepared by the directors under clause 2 of this Schedule; and
3. the Auditor-General’s report on those financial statements, prepared under Part 2 of this Schedule and addressed to the responsible Minister.

Note: The report may include other matters, for example, matters that are required by another Act or by Ministerial guidelines.

Non-statutory bodies

1. The date of establishment of each new non-statutory body (NSB) and, in relation to an existing NSB, information regarding the date of its establishment in as much detail as is available.
2. A statement of each NSB’s objectives and functions.
3. An account of each NSB’s significant activities during the year.
4. An indication that the creation or continued existence of each NSB, its functions and its organisation have received Ministerial approval.
5. The date on which each NSB will cease to exist or before which it will be reviewed (whichever is the earlier).
6. In the case of any NSB whose continued existence, functions and organisation have been reviewed and whose continued existence has been approved by the Minister, a summary of the outcome of the review.
7. A list of any positions provided for ex-officio government members on each NSB and of any positions provided for representatives nominated by particular non–government organisations.
8. The maximum term of appointment to each other position on an NSB.
9. Except in cases where there may be little or no continuity of membership from one meeting to the next, the names of individual members of each NSB, and their terms of appointment.
10. The manner in which the level of remuneration (if any) paid to members of each NSB is determined.
11. The manner in which each NSB is funded.
12. A summary of any other financial arrangements such as the kinds of expenditure that can be made from the funds provided, and the nature of secretariat services provided and the way in which these are funded.
13. An indication, in respect of each NSB, as to whether one of its functions is to distribute funds to other organisations or individuals.
14. In the case of each NSB with its own accounting system, an audited financial statement.
15. In the case of each NSB that operates through its parent body’s accounts, an account of receipts and expenditures, to be provided on a program basis:

• with the NSB’s work reflected in the parent body’s published program structure;
• and with performance related to objectives and measured in terms of stated criteria, in accordance with standard program budgeting techniques; and
• the amounts of any grants made by each NSB.

(Derived from the government response to the report on non-statutory bodies of the Senate Standing Committee on Finance and Government Operations, Senate Hansard, Vol. S.124, 8 December 1987, pp. 2643–5).

Appendix 4 – extension of time for presentation

National Occupational Health and Safety Commission

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