Overview
1.1
The Senate Rural and Regional Affairs and Transport Legislation
Committee's (the committee) report on annual reports provides an overview
of the committee's examination of annual reports for the 2018–19 financial
year, tabled between 1 May 2019 and 31 October 2019.[1]
The Committee is responsible for examining the annual reports of departments
and agencies within the portfolios of:
-
Agriculture; and
-
Infrastructure, Transport, Cities and Regional Development.[2]
1.2
This is the first of two reports on annual reports the Committee is
required to produce in 2020.
Terms of reference
1.3
Under Senate Standing Order 25(20), annual reports 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 is required to:
- Examine each annual report referred to it and report to the Senate whether the
report is apparently satisfactory.
- Consider in more detail, and report to the Senate on, each annual report which
is not apparently satisfactory, and on other annual reports which it selects
for more detailed consideration.
- Investigate and report to the Senate on any lateness in the presentation of
annual reports.
- In considering an annual report, take into account any relevant remarks about
the report made in debate in the Senate.
- If the committee so determines, consider annual reports of departments and
budget-related agencies in conjunction with examination of estimates.
- 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.
- Draw to the attention of the Senate any significant matters relating to the
operations and performance of the bodies furnishing the annual reports.
- 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.
Purpose of annual reports
1.4
The tabling and scrutiny of annual reports by Senate committees under
Standing Order 25(20) is an important element in the process of government accountability
to the Parliament. Annual reports place information about government
departments and agencies on the public record in relation to the performance
activities, management and financial position of the reporting body. They are a
primary accountability mechanism and assist the Parliament in the effective
examination of the performance of departments and agencies, and the
administration of government programs.
Reports referred to the Committee
1.5
In accordance with Standing Order 25(20)(f), this report examines the
following annual reports, tabled in the Parliament or presented out of session
and referred to the Committee between 1 May 2019 and 31 October 2019:
Agriculture portfolio
-
Department of Agriculture—Annual Report 2018–19;
-
Australian Fisheries Management Authority—Annual Report 2018–19;
-
Murray-Darling Basin Authority—Annual Report 2018–19.
Infrastructure, Transport, Cities
and Regional Development portfolio
-
Department of Infrastructure, Transport, Cities and Regional
Development—Annual Report 18-19;[3]
-
Airservices Australia—Annual Report 2018-19;
-
Australian Maritime Safety Authority (AMSA) —Annual Report
2018-19;
-
Australian Rail Track Corporation Ltd (ARTC) —Annual Report 2019;
-
Australian Transport Safety Bureau (ATSB)—Annual Report 2018-19;
-
Civil Aviation Safety Authority (CASA)—Annual Report 2018-19;
-
Infrastructure and Project Financing Agency (IPFA)—Annual Report
2018-19;
-
Infrastructure Australia—Annual Report 2018-19;
-
International Air Services Commission—Annual Report 2018-19;
-
Moorebank Intermodal Company Limited (MIC)—Annual Report 2019;
-
National Transport Commission (NTC) —Annual Report 2018-2019;
-
Western Sydney Airport (WSA)—Annual Report 2019.
Reports not examined
1.6
The committee is not obliged to report on Acts, statements of corporate
intent, surveys, policy papers, budget documents, corporate plans or errata.
Accordingly, the following documents were referred to the committee but have
not been examined in this report:
-
Deed of Variation in relation to the Regional Forest Agreement
for the South-West Forest Region of Western Australia;
-
Review of Agricultural and Veterinary Chemicals Legislation
Amendment Act 2013 – Operation of the amendments – Section 4 of the Agricultural
and Veterinary Chemicals Legislation Amendment Act 2013;
-
Airservices Australia – Report on Movement Cap for Sydney Airport
– First Quarter 2019 - 1 January 2019 to 31 March 2019 – Section 9(3) of the Sydney
Airport Demand Management Act 1997;
-
Airservices Australia – Corporate Plan 2019-20 – Section 15 of
the Air Services Act 1995;
-
Civil Aviation Safety Authority (CASA) – Corporate Plan 2019-20 –
Section 45 of the Civil Aviation Act 1988;
-
Final
budget outcome 2018-19—Report by the Treasurer (Mr Frydenberg) and the Minister
for Finance (Senator Cormann), dated September 2019;
-
Airservices Australia – Report on Movement Cap for Sydney Airport
– Second Quarter 2019 - 1 April 2019 to 30 June 2019 – Section 9(3) of the Sydney
Airport Demand Management Act 1997;
-
Report to Parliament on Livestock Mortalities During Export by
Sea for the period of 1 July - 31 December 2018 – Division 5, Section 57AA of
the Australian Meat and Live-stock Industry Act 1997;
Annual reporting requirements
1.7
The Public Governance, Performance and Accountability Act 2013
(PGPA Act) established a performance reporting framework for all Commonwealth
entities and companies. The performance framework is based on section 38 of the
PGPA Act, which requires all Commonwealth entities to measure and assess their
performance.
1.8
Section 39 of the PGPA Act requires all Commonwealth entities to prepare
an annual performance statement and include those statements in their annual
reports. Entities use the annual performance statements to report on the
results achieved against the targets, goals and measures established at the
beginning of a reporting year in corporate plans and Portfolio Budget
Statements.
1.9
The performance framework established under the PGPA Act includes the
requirement for Commonwealth entities to prepare a corporate plan and annual
performance statements. The Public Governance, Performance and Accountability
Rule 2014 (PGPA Rule 2014), established under the PGPA Act, details the
requirements for the corporate plan, annual performance statements as well as
guidelines for annual reports.[4]
1.10
Below is a summary of the legislative authority and requirements for the
different types of bodies under which annual reports are prepared:
Non-corporate Commonwealth
entities:
-
PGPA Act, section 46 and the PGPA Rule 2014, Division 3A(A);
-
for portfolio departments and executive agencies, the Public
Service Act 1999, subsections 63(2) and 70(2);
-
for parliamentary departments, the Parliamentary Service Act
1999, section 65l; and
-
for statutory bodies, relevant enabling legislation.
Corporate Commonwealth entities
-
PGPA Act, section 46 and the PGPA Rule 2014, Division 3A(B); and
-
for statutory bodies, relevant enabling legislation.
Commonwealth companies
-
PGPA Act, section 97, which also refers to requirements under the
Corporations Act 2001 and the PGPA Rule, Part 3-3; and
-
for statutory bodies, relevant enabling legislation.
Non-statutory bodies
-
the annual reporting requirements are contained in the government
response to the Senate Standing Committee on Finance and Public
Administration's Report on Non-Statutory bodies.[5]
Timeliness
1.11
Standing Order 25(20)(c) requires the committee to report to the Senate
on the late presentation of annual reports. In assessing the timeliness of the
presentation of annual reports, the committee assesses the presentation against
the requirements of different categories of bodies, the PGPA Rule 2014 and
other legislative requirements.
Commonwealth entities
1.12
Section 46 of the PGPA Act requires Commonwealth entities, both
corporate and non-corporate, to prepare an annual report and provide it to the
responsible minister by the 15th day of the fourth month, which translates as
15 October. Certain agencies, however, may have a specific date stipulated by
their enabling legislation.
1.13
Formerly, annual reports of non-corporate entities had to be presented
by the responsible Minister to each House of Parliament on or before 31 October
each year.[6]
There is no longer an explicit stipulation for this to occur as the PGPA Rule
is silent on the matter. However, the PGPA Rule does recommend that such
reports be tabled before Supplementary Budget Estimates.
Commonwealth companies
1.14
Section 97 of the PGPA Act sets out the requirements for the provision
of annual reports of Commonwealth companies to the responsible minister. Under
subsection 97(2) of the PGPA Act, a company is to provide a report:
- if the company is required by the Corporations
Act 2001 to hold an annual general meeting—the earlier of the following:
- 21 days before the next annual general meeting
after the end of the reporting period for the company;
- 4 months after the end of the reporting period
for the company; and
- in any other case—4 months after the end of the reporting
period for the company; or the end of such further period granted under
subsection 34C(5) of the Acts Interpretation Act 1901.
1.15
Subsection 97(5) of the PGPA Act states:
(5) If the Commonwealth company is
a wholly-owned Commonwealth company, or is not required to hold an annual
general meeting, 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 responsible Minister must table the documents in each House of
the Parliament as soon as practicable after the annual general meeting of the
company.
PGPA Rule 2014
1.16
The PGPA Rule 2014 states that annual reports for corporate Commonwealth
entities, non-corporate Commonwealth entities and Commonwealth companies must
comply with the Guidelines for the Presentation of Documents to the Parliament,
which is prepared by the Department of the Prime Minister and Cabinet.[7]
1.17
The guidelines advise that for all entities:
As per past practice, it is expected that the responsible
Minister will present the report to each House of Parliament on or before 31
October. If the Senate Supplementary Budget Estimates hearings are scheduled to
occur prior to 31 October, it is best practice for annual reports to be tabled
prior to those hearings. This ensures that annual reports are available for
scrutiny by the relevant Senate standing committee.[8]
1.18
Entities reporting in accordance with their own legislation are often
required to prepare for the relevant minister their annual report 'as soon as
is practicable' after the end of the particular period to which the report
relates. The Committee draws attention to subsections 34C(2) and 34C(3) of the Acts
Interpretation Act 1901, which stipulate that where no date for providing a
report to a minister is specified, the report should be presented no more than
six months after the reporting period, and the minister must provide the report
to the Parliament within 15 sitting days after the minister receives it.
Timeliness of reports examined
1.19
The presentation of annual reports to the Parliament has two elements
with regard to timeliness: the furnishing of the report to the minister and the
presentation of the report to the Parliament.
1.20
Appendix 1 sets out a complete list of documents referred to the committee
during the period 1 May 2019 and 31 October 2019 (including those not examined
in this report).[9]
This appendix includes references to the relevant legislation, the letter of
transmittal dates, the dates on which the annual reports were sent to, and
received by, the relevant minister, and the dates on which the annual reports
were tabled in both the House of Representatives and the Senate.
1.21
The committee notes that the following bodies did not present an annual
report to the entity's responsible minister by 15 October as stipulated by
section 46(2) of the PGPA Act:
-
Australian Livestock Export Corporation Limited (LiveCorp);
-
Fisheries Research and Development Corporation (FRDC);
-
Grains Research and Development Corporation (GRDC); and
-
Cotton Research and Development Corporation (CRDC).
1.22
The committee notes that the following bodies did not table their annual
reports in either the House of Representatives or the Senate prior to the
commencement of Supplementary Budget Estimates:
-
Regional Investment Corporation;
-
North Queensland Water Infrastructure Authority;
-
National Capital Authority;
-
Australian Pesticides and Veterinary Medicines Authority;
-
Australian Livestock Export Corporation Limited (LiveCorp);
-
AgriFutures Australia;
-
Fisheries Research and Development Corporation;
-
Grains Research and Development Corporation;
-
Cotton Research and Development Corporation; and
-
Wine Australia.
1.23
The committee notes with concern the increased number of agencies that
have not tabled their annual reports prior to the commencement of Supplementary
Budget Estimates.
1.24
The committee reminds all agencies that it is best practice for annual
reports to be tabled prior to the commencement of Supplementary Budget
Estimates. The committee further notes that it is possible for agencies to
table their annual reports out-of-sitting to ensure that they meet their
statutory obligations and to ensure that reports are available to senators
before Supplementary Budget Estimates. The timely tabling of annual reports
allows senators sufficient time to consider their detail before the hearings.
1.25
The committee will continue to monitor the timeliness of the tabling of
future annual report and strongly encourages the aforementioned entities to
table their annual reports prior to 19 October 2020.
Senate debate
1.26
Senate Standing Order 25(20) requires the committee to take into account
any relevant remarks about reports made in debate in the Senate. The committee
notes that the annual reports examined in this report have not been the subject
of comments or debates in the Senate.
Bodies not presenting annual reports to the Senate
1.27
The committee is required to report to the Senate on whether there are
any bodies which should have presented an annual report to the Senate but did
not. The committee is satisfied that there are no such bodies at this time.
Apparently satisfactory
1.28
Standing Order 25(20)(a) requires the committee to report to the Senate
on whether the annual reports of departments and agencies in its portfolio are
'apparently satisfactory'. In making this assessment, the Committee considers
aspects including timeliness of presentation and compliance with the relevant
reporting requirements.
1.29
The committee considers that the majority of annual reports referred
during the reporting period were 'apparently satisfactory'. The following
chapter examines selected annual reports in further detail.
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