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Committee Membership

Members
Senator Alan Eggleston, Chair (LP, WA)
Senator Kate Lundy, Deputy Chair (ALP, TAS)
Senator Bob Brown (AG, TAS)
Senator the Hon Michael Ronaldson (LP, VIC)
Senator Santo Santoro (LP, QLD)
Senator Dana Wortley (ALP, SA)

Participating Members
Senator the Hon Eric Abetz (LP, TAS)
Senator Lyn Allison (AD, VIC)
Senator Andrew Bartlett (ADF, QLD)
Senator the Hon Ron Boswell (NPA, QLD)
Senator George Campbell (ALP, NSW)
Senator Kim Carr (ALP, VIC)
Senator Grant Chapman (LP, SA)
Senator Richard Colbeck (LP, TAS)
Senator the Hon Helen Coonan (LP, NSW)
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 Michael Forshaw (ALP, NSW)
Senator the Hon Bill Heffernan (LP, NSW)
Senator John Hogg (ALP, QLD)
Senator Gary Humphries (LP, ACT)
Senator Ross Lightfoot (LP, WA)
Senator Joseph Ludwig (ALP, QLD)
Senator Julian McGauran (NPA, VIC)
Senator Jan McLucas (ALP, QLD)
Senator Brett Mason (LP, QLD)
Senator Claire Moore (ALP, QLD)
Senator Kerry Nettle (AG, NSW)
Senator Kerry O'Brien (ALP, TAS)
Senator Robert Ray (ALP, VIC)
Senator John Watson (LP, TAS)
Senator Ruth Webber (ALP, WA)
Senator Penny Wong (ALP, SA)

Committee Secretariat
Ms Louise Gell, Secretary
Ms Jacquie Hawkins, Research Officer

Committee Address
Environment, Communications, Information Technology and the Arts Legislation Committee
S1.57, 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

Contents

• Membership of the Legislation Committee
• Abbreviations
• Report to the Senate
  • Introduction
  • Annual reporting requirements
  • Purpose of annual reports
  • Reports referred to the Committee
    • Executive agency
    • Statutory authorities
    • Government business enterprises
    • Reports on the operation of Acts
  • Remarks made in the Senate
  • Timeliness
  • Comments on annual reports
  • Bodies not presenting annual reports to the Senate
  • Summary
• Appendix 1 – Annual reports referred to the Committee

Abbreviations

Report to the Senate

Introduction

1.1       By virtue of the operations of Standing Order 25(21) 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 Heritage.

1.2       Standing Order 25(21) 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 2004 to 30 April 2005 as required by standing order 25(21)(f).

Annual reporting requirements

1.4       On 4 June 2004 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 11 annual reports from agencies and the department within the Communications, Information Technology and the Arts portfolio, and five annual reports of agencies within the Environment and Heritage portfolio, which were tabled in the Senate or presented to the President between 1 November 2004 and 30 April 2005.

1.11      The following reports have been referred to the Committee for examination and report:

Prescribed agency
      Bureau of Meteorology
          Annual Report 2003-04

Statutory authorities
      Australian Broadcasting Corporation
          Equity and Diversity Annual Report 2003-04
      Australian Sports Commission
          Annual Report 2003-04
      Australian Sports Drug Agency
          Annual Report 2003-04
      Director of National Parks
          Annual Report 2003-04
      National Environment Protection Council
          Annual Report 2003-04
      Wet Tropics Management Authority
          Annual Report and State of the Wet Tropics Report 2003-2004

Government business enterprises
      Australian Postal Corporation (Australia Post)
          Statement of Corporate Intent 2004/2005-2006/2007
      Telstra Corporation
          Equal Employment Opportunity Annual Report 2003-04

Reports on the operation of Acts
      Australian Broadcasting Authority
          Six-Month Report on the Online Content Co-Regulatory Scheme:
              Reporting Period 8: July to December 2003
          Six-Month Report on the Online Content Co-Regulatory Scheme:
              Reporting Period 9: January to June 2004
      Australian Competition & Consumer Commission
          Competition in the corporation customer segment of telecommunications markets July-December 2003
      Australian Communications Authority
          Telecommunications Performance Report 2003-04
      Department of Communications, Information Technology and the Arts
          Funding of Research and Consumer Representation in relation to Telecommunications Annual Report 2003-04
          Telecommunications Carrier Industry Development Plans Progress Report 2003-04
      Natural Heritage Trust
          Annual Report 2002-03

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(21)(d), the Committee notes that, of the reports dealt with in this report, two annual reports, the Wet Tropics Management Authority Annual Report 2003-04 and the Natural Heritage Trust Annual Report 2002-03, were the subject of debate in the Senate. Further detail is provided below.

Timeliness

1.14      All reports examined in this report were timely in their presentation to the Parliament except those commented on below.

1.15      A prescribed agency, the Bureau of Meteorology is covered by the Department of the Prime Minister and Cabinet's Requirements for Annual Reports and its report should therefore have been tabled by 31 October. The Committee notes that while the report was received by the Minister on 5 October 2004, it was not tabled until 30 November 2004.

1.16      The report of the Natural Heritage Trust 2002-03 was tabled on 7 December 2005, having been received by the Minister on 11 November 2004. Under section 43 of the Natural Heritage Trust Act 1997, the Minister must cause an annual report to be prepared as soon as practicable after 30 June each year and table it within 15 sitting days. The Committee is concerned that the preparation and tabling of this report were so delayed.

1.17      The Committee notes previous advice from the National Environment Protection Council (NEPC) that its enabling legislation requires it to include reports by each member of the Council (that is, 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 would occur each year.[5]

1.18      The Committee notes that the letter of transmittal to the Minister in the Wet Tropics Management Authority's Annual Report is dated 19 September 2004. However, the report was received by the Minister on 3 February 2005 and tabled on 8 March 2005. The Committee is concerned at the delay in the tabling of the report.

1.19      The remaining three agencies which tabled reports after 31 October all report under the CAC Act. Section 9 of that Act provides that annual reports must be given to the responsible Minister by 15 October. Each of these reports met this deadline as shown below:

Director of National Parks, received 1 October 2004, tabled 30 November 2004;

Australian Sports Commission, received 29 September 2004, tabled 29 November 2004; and

Australian Sports Drug Agency, received 22 September 2004, tabled 30 November 2004

1.20      The Requirements for Annual Reports state 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.'[6] The Committee encourages agencies to table annual reports in a timely manner.

Comments on annual reports

1.21      The Committee notes comment on some of the annual reports referred to it for examination.

Australian Sports Commission (ASC)

1.22      This report details preparations by athletes and the ASC in the lead up to the 2004 Olympic and Paralympic Games. It notes that the government provided $1 million additional funding for direct athlete support to assist with this preparation, allowing for participation in a number of major events both in Australia and overseas.

1.23      Both the ASC and national sporting organisations have worked together to ensure compliance with the World Anti-Doping Agency Code. The report notes the ASC's zero tolerance policy on the use of performance-enhancing drugs in sport and the efforts it has made to combat the use of drugs in sport.

1.24      The report also advises of a new program, the Building a Healthy, Active Australia initiative, to combat childhood obesity through the Active After-school Communities program.

Australian Sports Drug Agency (ASDA)

1.25      The report notes that ASDA exceeded its targets against several Key Performance Indicators, noting 'The measure of ASDA's deterrent effect showed an overall result of 92 percent and client satisfaction with its services was at 98 percent'.[7]

1.26      During the year ASDA undertook an intensive testing program focussing on all Australian Olympic squad members leading up to the Olympic Games in Athens. It undertook to conduct at least one out of competition drug test on every team member during the seven months prior to the Games commencing in August 2004.

1.27      The report outlines the contribution ASDA has made to the development of the World Anti-Doping Program and education programs provided to athletes and sporting bodies to ensure broad community awareness of the new World Anti-Doping Code.

1.28      The report indicates that ASDA has decreased expenditure, identified efficiencies and secured additional income during the reporting year, noting that the agency incurred a small 0.5 percent financial loss for the year which it states is 'largely attributable to unforeseen changes in income from international sources'.[8]

Bureau of Meteorology

1.29      This report is the first under director Dr Love, the Bureau's first new director in twenty-five years. It also flags preparations for moving the Bureau's headquarters to new premises in Melbourne.

1.30      New technology has enhanced the Bureau's services. The report details the effects of these technologies which have enabled the Bureau, for example, to predict more accurately the path and intensity of approaching thunderstorms; and to improve the collection of data on rainfall and river levels for the Bureau Flood Warning Centres for operational flood forecasting and warning.

1.31      During the reporting year, the Bureau commenced operating the new National Tidal Centre, providing sea level expertise and scientific advice for the public, maritime industry and specialist users. The report advises that it will support tsunami detection for the Australian Tsunami Alert System operated by the Bureau, Geoscience Australia and Emergency Management Australia.

1.32      In his Review, the Director states that the Bureau exceeded many of the performance targets identified in the 2003-04 Portfolio Budget Statements and that 'these targets will need to be revised in future to stretch the Bureau's performance and promote continuous improvement'.[9]

Director of National Parks

1.33      The Director of National Parks is responsible under the Environment Protection and Biodiversity Conservation Act 1999 (the EPBC Act) for the administration, management and control of Commonwealth reserves and conservation zones.

1.34      The report refers to pressures on its revenue and expenditure caused by declining visitor numbers to Kakadu and Uluru and fires during summer, along with ageing infrastructure, the need to maintain protection of natural and cultural assets and managing visitor risks.

1.35      The Director notes the difficulties in reporting on the management and administration of Commonwealth reserves as 'many of the outcomes of our actions and investments are not easily measured'. The report states that collaborating with interested parties and developing new ways to improve accountability will enable more concise reporting on the effectiveness and impacts of the agency's activities. [10]

National Environment Protection Council

1.36      Established as a result of the Intergovernmental Agreement on the Environment, all participating jurisdictions (the Commonwealth and all state and territory governments) have complementary legislation establishing the National Environment Protection Council (the NEPC). The Council has two primary functions: to make National Environment Protection Measures (NEPMs) and to assess and report on their implementation and effectiveness.

1.37      NEPMs outline agreed national objectives for protecting or managing particular aspects of the environment, for example in relation to air and water quality, soil pollution and noise. Implementation of NEPMs is the responsibility of each participating jurisdiction, and each minister reports to the Council each year on the implementation of each of these measures.

1.38      This report incorporates assessments from the Commonwealth, states and territories on the following NEPMs:

• National Pollutant Inventory
• Ambient Air Quality
• Movement of Controlled Waste between States and Territories
• Used Packaging Materials
• Assessment of Site Contamination, and
• Diesel Vehicle Emissions.

Natural Heritage Trust

1.39      The Trust reports on the first year of its activities since it was extended for a further five years from July 2002. The Trust aims to engage the community in natural resource management and environment protection activity. All 56 regions identified for the purposes of the Trust will have access to Natural Heritage Trust investment.

1.40      The Trust reports that a total of $55.7 million has been invested in regional projects.

1.41      The report advises that the Australian Government has entered into bilateral agreements for delivery of regional investments with all states and territories, with discussions continuing with New South Wales and Queensland.

1.42      The Committee notes that the Independent Audit Report states that there was a breach of section 48 of the Financial Management and Accountability Act 1997. Note 4.5 to the Financial Statements sets out the manner in which funds were incorrectly credited. The Note states that 'The accounts and records were not kept in such a way as to ensure all appropriated moneys were recorded by the Department.'[11]

1.43      Funds were credited to the Special Account in a manner which mistakenly duplicated payments. The net effect of the accounting adjustments set out on page 193 of the report was to increase the Special Account Appropriation Receivable at 30 June 2002 by $25.7 million and the amount that should have been accrued as revenue at 30 June 2002 by $32.3 million. This error has resulted in accounting adjustments being made to the financial information for the current and previous three years.

1.44      This issue was raised in the Senate when information was sought from the Minister for Finance and Administration about action taken in relation to the breach.[12]

Wet Tropics Management Authority

1.45      The report notes the successful negotiation of a Wet Tropics Regional Agreement between 18 Rainforest Aboriginal tribal groups and the Authority, and the Queensland and Australian governments in order to involve traditional owners in all aspects of World Heritage Area management.

1.46      The report also notes the imminent launch of the Wet Tropics Conservation Strategy which will not only guide efficient use of conservation resources but assist in the development of the Management Plan. The report flags the review of the Wet Tropics Management Plan, which will be a major project and focus for the Authority.

1.47      This report generated some debate in the Senate after its tabling. Two issues in particular were mentioned: threats to the Daintree rainforest area by land subdivision, and a proposal to construct a four-lane highway which could have a very significant impact on the World Heritage area.[13]

Bodies not presenting annual reports to the Senate

1.48      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

1.49      The terms of Standing Order 25(21)(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.

1.50      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.

1.51      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 One

Annual reports referred to the Environment, Communications, Information Technology and the Arts Legislation Committee
between 1 November 2003 and 30 April 2004

Communications, Information Technology and the Arts portfolio

Environment and Heritage portfolio

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