Chapter 2 - Annual reports of statutory and non-statutory authorities and government companies

Defence portfolio

The Army and Air Force Canteen Service

2.2        The Army and Air Force Canteen Service Board of Management Annual Report 2002–2003 was presented to the President of the Senate on 25 November 2003. The report is tabled in accordance with section 9 of the Commonwealth Authorities and Companies Act 1997.

2.3        The Army and Air Force Canteen Service (AAFCANS) was established as a statutory body by regulations under the Defence Act 1903. The Board adopted the trade name ‘Frontline Defence Services’ (‘Frontline’) in 1997 as part of a major business realignment.[1] The stated mission of the organisation is ‘to become the “preferred retailer of choice” serving Australia’s finest by doing the simple things exceptionally well at the time’.[2]

2.4        In the period 2002–2003, the Board of Management reported that it had addressed the longer–term sustainability of the business. The advent of large volume discount retailers, convenience stores and fast food outlets has introduced direct competition with Frontline.[3]

2.5        The Chairman reported that:

The changes in the Australian Defence Force disposition, trends in social attitude, the introduction of commercial contractors onto bases has reduced the market available to Frontline. As a result of this competition and a reduction in market size and Frontline's wish to continue to provide the service, Frontline has experienced operating losses in a number of outlets.[4]

2.6        The Chairman goes on to report that the Board has worked hard with Government and the Australian Defence Force Organisation to redress these difficulties to ensure a sustainable business. A way ahead has been agreed and actions have been implemented to rationalise the way Frontline conducts its business.

2.7        The implementation is being conducted in cooperation with base and unit commanders. The resulting business plan will ensure Frontline continues to deliver service to its customers and at the same time, meet its regulatory requirements.[5]

2.8        The 2002–2003 report is an informative account of the operations and performance of AAFCANS. The Committee finds that this report fulfils all requirements outlined in the guidelines for statutory bodies.

Defence Housing Authority

2.9        The Defence Housing Authority Annual Report 2002–2003 was presented to the President of the Senate on 2 December 2003. The report is submitted in accordance with section 43 of the Defence Housing Authority Act 1987 and the Commonwealth Authorities and Companies Act 1997.[6]

2.10    The Defence Housing Authority’s statutory function is ‘to provide adequate and suitable housing for members of the Australian Defence Force and their families, Defence civilians and other persons, in order to meet the operational needs of the Australian Defence Force and the requirements of the Department of Defence’. DHA also provides tenancy management and relocation services to Defence and administers the Defence HomeOwner Scheme.[7]

2.11    The Chairman and Managing Director reported the DHA achieved twenty five years of providing housing solutions for Australian Defence Force members and their families. In December 2002 DHA and Defence signed a Relocation Services Agreement which included a series of key performance indicators (KPIs) aimed at establishing the standard for relocations services to be maintained by DHA. The Authority successfully performed against these KPIs during the 2002–2003 ADF peak posting period.

The best evidence of how well DHA is providing services to our members is their feedback on their experiences when moving house and living in DHA properties. Results of customer survey feedback undertaken during the year indicate 82 per cent of our ADF members were satisfied with their housing, 84 per cent were satisfied with maintenance services and 85 per cent indicated they were satisfied with DHA's relocation services.[8]

2.12    The Committee finds this report to be well designed and comprehensive in its coverage of the Defence Housing Authority’s activities. The report complies with all reporting requirements for statutory bodies.

Judge Advocate General

2.13    The Judge Advocate General Report for the period 1 January to 31 December 2003 was tabled in the Senate on 22 June 2004.

2.14    The office of Judge Advocate General (JAG) of the Australian Defence Force (ADF) is a statutory body created under the Defence Force Discipline Act 1982. The JAG is an office held only by a Federal Court or a Supreme Court judge. The position has a number of functions, including making procedural rules for service tribunals, providing the final legal review of proceedings within the Australian Defence Force, and, reporting upon the operation of laws relating to the discipline of the ADF. ‘The JAG also has a significant role in the promotion of the jurisprudential welfare and education of the ADF’.[9]

2.15    As forecast in the JAG Annual Report 2002, amendments were made in December 2003 to the Defence Force Military Discipline Act 1982. The legislative amendments now implement a range of recommendations made by Brigadier the Hon Justice A R Abadee, RFD, arising from his inquiry into the military discipline system.[10]

2.16    The JAG reported in his 2002 report that a Registrar of Military Justice (RMJ) had been appointed to oversee the introduction of a discipline tracking and case flow management system (DTCFMS) for the ADF. It is designed to track the progress if cases through the disciplinary process from the time a charge is preferred, through the Service tribunal and review phases. The tracking will terminate when all statutory and optional appeals have been resolved. A key feature of the system is the circulation of time norms between steps in the process.

2.17    The JAG stated in this year's report that full use of the system had yet to be achieved, mainly due to late, incomplete or inaccurate data entry by many ADF units. The RMJ is pursuing a number of initiatives to improve reliability.

2.18    The Registrar of Military Justice will also accept initial responsibility for the development and implementation of an ADF administrative inquiry tracking system (ADFAITS). The JAG envisages that 'ADFAITS will be a working tool by late 2004, at which time the RMJ’s responsibility should cease with ownership reassigned to a more appropriate authority'.[11]

2.19    The report is a clearly written account of the operations and performance of the office of the Judge Advocate General. The Committee finds that this report fulfils all requirements outlined in the Guidelines for statutory bodies.

Foreign Affairs and Trade portfolio

Australia–Japan Foundation

2.20    The Australia–Japan Foundation Annual Report 2002–2003 was tabled in the Senate on 3 December 2003. The report was tabled in accordance with section 25 of the Australia–Japan Foundation Act 1976.

2.21    The Foundation was established as a statutory body by the same Act in May 1976. It aims ‘to encourage a closer relationship between the peoples of Australia and Japan, and to further the knowledge and understanding of each other’. The Foundation achieves this by offering projects that focus on three main areas—education, information and strategic alliances. It also emphasises creative use of technology to develop and deliver its programs.[12]

2.22    The Chairman, in his review, commented that it had been a very successful year for the Foundation, particularly in furthering its educational objectives in primary schools and in nurturing academic stakeholders through tertiary oriented programs.

2.23    The Chairman expanded on the subject by reporting that:

...the Foundation had secured a special niche in Japan’s education sector by introducing and expanding on new initiatives. Some of the Foundation’s best initiatives have been the production of teaching materials on Australia for Japanese primary and junior schools. More than 100 000 primary school students have used our Experience Australia kit since its release in July 2002, and Japanese teachers regularly use our Japanese government–approved Discovering Australia video and text, which have been distributed to more than 11 000 junior high schools.[13]

2.24    The Foundation’s achievements are measured against two outcomes and four outputs. Its performance in relation to each output is measured in terms of quality, quantity and price indicators. Chapter Three in the report provides a comprehensive and satisfactory account of the Foundation’s programs for the period. The Committee notes that in 2003–2004 the Foundation intends to report against a revised arrangement comprising a single outcome and three outputs.[14]

2.25    The Committee considers that the Foundation’s report is a well produced and meets all the guidelines for annual reports of statutory authorities.

Australia–China Council

2.26    The Australia–China Council Annual Report 2002–2003 was tabled in the Senate on 10 February 2004. The Council was established by an Executive Council Order in 1978. As a non–statutory body it is not formally required to table a report. However, the Council has adopted the practice of submitting a report to the Minister and the Parliament.[15]

2.27    The mission of the Council is to foster in Australia and China a greater awareness and understanding of each others’ countries; and, to develop and expand the areas of contact and exchange between Australia and China and their people.[16]

2.28    In May 2003 the Council celebrated the twenty fifth anniversary of its establishment. The Chairman, in his overview, reported that in the last 25 years the Council had played an important part in broadening the range of exchanges between Australia and China beyond traditional areas of official contact.

2.29    In 2002–2003 financial year, the Council launched new Youth Exchange, Australian Studies and Residency initiatives. The Council also presented a second set of Australia–China Council Awards to people who have made significant contributions to the bilateral relationship and the inaugural Alice Tay Human Rights Award.[17]

2.30    The Chair also expanded on changes to the administration of the Council:

The Council conducted a review of its administrative processes in 2002 and decided to move from organising its work through committees to a program structure with various Council members responsible for each program.

...

To improve the quality of its annual reports, the Council has adopted a new performance information framework with an outcome and outputs structure. In order to publicise better the Council's activities, we have expanded the Councils web site to provide more information about our programs.[18]

2.31    The Council has produced an interesting report that informs the reader on the operations and outcomes of the ACC. It is clearly written and presented in a simple but effective format. The Committee finds that the report complies with the reporting requirements for non–statutory bodies.

Australia–Korea Foundation

2.32    The Australia–Korea Foundation Annual Report 2002–2003 was tabled in the Senate on 16 June 2004. The Australian–Korea Foundation (AKF) is a non–statutory body established by the Australian Government in May 1992. It is not required to submit an annual report but follows the practice of other bilateral foundations with secretariats in the Department of Foreign Affairs and Trade.

2.33    In 1991, a consultative body, set up to identify areas for further development between the Australian and Korean (ROK) Governments, recommended that a foundation be established to act as a catalyst in stimulating and strengthening the bilateral relationship. The Australia–Korea Foundation ‘supports and promotes people–to–people exchanges and sustainable institutional links covering the spectrum of Australia’s relations with Korea, particularly in the areas of commerce, industry and tourism; science and technology; education; the arts, media and sport’.[19]

2.34    The Chairman, in his overview, reported that one of the most important events to happen during the 2002–2003 year was the Fourth Australia–Korea Forum—held in Hobart in July 2002. It was a three day meeting of political, business, media and arts leaders from both Australia and Korea. The forum theme was ‘Australia and Korea working together in strategic partnership’.

2.35    The Chairman stated that:

The forum serves to further bilateral relations and to research and set appropriate policy development between our two countries. The forum’s recommendations have served as an informed basis for planning future programs and directions for the AKF.

...

One recommendation of the forum was to encourage the deeper mutual understanding between the two countries through cultural studies including facilitating the translation and distribution of Korean books into the Korean language. ... during the year AKF voted to assist in the translation of up to three Australian books into Korean. The books, which are yet to be decided, will come from different categories of literature. ... This is an ongoing project that is being undertaken in collaboration with the Australia–Korea Foundation[20]

2.36    The Committee finds this report to be well designed and comprehensive in its coverage of the Australia–Korea Foundation’s activities. The report complies with all reporting requirements for non–statutory bodies.

2.37    The Committee considers that all the annual reports of the abovementioned organisations fully met their respective reporting requirements.

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