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Review by Secretary
In delivering outcomes for the Government in 2002-03, the Department was again working in an environment of change, both in terms of technology and convergence of markets, and in the wider security environment.
The year has seen a number of external and internal reviews to consider whether the policy settings across the Department's areas of responsibility should be adjusted to meet emerging trends and needs. This was particularly pertinent in the context of pressure for increasing assistance in a number of the Portfolio's programs and of widespread calls on resources across government. There was, similarly, a strong focus on increasing efficiency and effectiveness across the Department's operations.
Policy advice
In this environment, policy advice was a priority for attention, and reviews of the policy framework were a central aspect of policy development. In three important areas, they involved reporting by an independent inquiry or steering committee with the Department providing secretariat and research assistance. These reviews comprised the independent Regional Telecommunications Inquiry established to report on the adequacy of telecommunications in regional, rural and remote Australia, the report of the ICT Framework for the Future Steering Committee Enabling our Future, which provided a strategic blueprint for the development of the industry over the medium term, and the review commissioned by the National Museum of Australia to evaluate its exhibitions and public programs.
In addition, the Department was directly involved in a review of cultural agencies, which resulted in new arrangements to assist with the preservation of the national collections, the integration of ScreenSound Australia and the Australian Film Commission, and additional funding for the Bundanon Trust and the National Institute of Dramatic Art. Reviews were conducted into online content regulation, interactive gambling services regulation, and local content obligations for subscription television and datacasting services. The Department also supported the Government in developing its response to the Myer Inquiry into Contemporary Visual Arts and Craft.
A key issue during the year concerned changing market structures in the communications sector and the regulatory impacts of that change. Priority issues included the Government's commitment to reform the media ownership regime in Australia, emerging industry structures in the pay-television market including the Foxtel/Optus content sharing agreement, institutional arrangements to provide the most efficient and effective regulation of spectrum management, regulatory frameworks for digital television and community television that provide greater flexibility and certainty for those sectors, and initiatives to improve the environment for competition and investment in the telecommunications market, including the implementation of an accounting separation regime for Telstra's wholesale and retail operations.
A wide range of other areas were the subject of strategic policy advice during the year including the implementation of the Government's election commitments for the postal sector and the introduction of a postal industry ombudsman, broadband developments, funding arrangements for the ABC and SBS for a new triennium, digital radio issues, digital content issues in broadcasting and the arts, reforms to the copyright industry and copyright enforcement, and support for the development and implementation of venture capital reforms. Telecommunications consumer issues were also a focus with arrangements implemented to improve the reliability of telephone services, including establishing priority assistance arrangements and evaluation of teletypewriter (TTY) services.
Internationally, it was recognised that the negotiation of a free trade agreement between the United States and Australia had considerable implications across a number of areas of departmental responsibility including broadcasting, audiovisual and cultural services, government procurement, e-commerce, intellectual property and the framework for the supply of broadband services. A negotiating team was assembled to develop advice across these areas. The international fight against doping in sport was supported by the adoption of the Copenhagen Declaration on Anti-Doping, in which Australia played a key role. The Department also assisted the World Anti-Doping Agency in finalising the World Anti-Doping Code.
Program implementation
Many of the programs that the Department administers are directed towards improving access to services. These include the television and radio black spots programs, the rollout of digital television transmission, a range of programs to expand mobile telephony and higher bandwidth coverage, the Telecommunications Action Plan for Remote Indigenous Communities and the National Cultural Touring Programs. Considerable progress was also made in implementing a range of Social Bonus and Telecommunications Service Inquiry programs. The establishment of the ICT Centre of Excellence National ICT Australia (NICTA) was an important achievement.
While the Department continued to administer program funding with careful attention to program guidelines, it increased its focus on ways in which program administration could be refined. With respect to the programs to increase access to services, for example, program delivery is often dependent on the actions of other players, both inside and outside the Government sector. The Department is working with these players in an attempt to improve, where practicable, forecasts of timing and implementation and to upgrade processes for monitoring and evaluation.
Overall, however, consultation with relevant stakeholders, including industry participants and consumer groups, showed that the Department's service to stakeholders was rated highly.
Legislation
The legislative work of the Department in 2002-03 was again considerable, involving the development of Bills and subordinate instruments relating to telecommunications competition and consumer issues, the full private ownership of Telstra, the regulation of Australia Post, media ownership, the digital television regime and the integration of ScreenSound Australia and the Australian Film Commission. During the year, the Legal Group was involved in preparing ten Bills, 12 Statutory Rules and 13 other statutory instruments.
A key development during the year has been the increasing use made of the Legal Group in assisting the Department in managing risk and in meeting its accountability obligations. In addition, the group is managing the process for a major review of the Chief Executive Instructions, which is currently in the planning stage.
Outcomes and outputs structure
Evidence has shown that the Department's outcomes and outputs structure has become outdated in many aspects and has not facilitated quality reporting. The Department therefore undertook a major review of this structure during the year and the new structure has now been approved by the Government. It also developed new performance indicators for each output through a process that included the involvement of relevant staff.
The new outputs will be introduced from the beginning of 2003-04 and this report is therefore the last on the basis of the old reporting structure.
Corporate developments
The Department has continued to strengthen its governance arrangements over the year. The establishment of a Corporate Governance section, reporting directly to the Chief General Manager, Corporate and Business, recognises the growing need to ensure that appropriate structures, processes and procedures are in place for the Department to perform with maximum effectiveness.
Considerable work was done to upgrade the Department's corporate documents including a review of the Client Service Charter, initiation of the development of a new Corporate Plan for 2003-06 and of a Business Continuity Plan, a revised Fraud Control Plan following a new Fraud Risk Assessment, a new IT Strategic Plan for 2003-05, a new security policy flowing from a Protective Security Review and a revised Risk Management Plan for 2002-03.
The Department also strengthened the operation of its Executive Management Group, its Information Management Committee, its Audit, Risk and Evaluation Committee, and its IT governance arrangements to increase its focus on strategic corporate and accountability matters.
The Department has two major outsourced contracts in the Corporate area, both of which were under review in 2002-03.
The Group 5 contract with Telstra Enterprise Services for the provision of information technology is to expire on 30 June 2004. The Department examined its options in line with current requirements and in the context of the recommendations of the Humphry Review of Whole of Government IT Outsourcing Initiative, and decided to market test these services on a select sourcing basis. The Department's human resources services are provided by the Empower Group under a contract which will expire in September 2004. The Department undertook a major review of these arrangements in conjunction with KPMG and the review's recommendations will be addressed during the current year.
In the financial area, considerable work was done to improve both internal financial reporting and financial controls and processes, including accounts processing. A full review of financial delegations was undertaken to ensure that they continue to meet Financial Management and Accountability Act 1997 and internal departmental requirements.
The Department's work to refine its financial reporting included developing new templates to capture information required under the recommendations of the Government's Budget Estimates and Framework Review. Given the large number of small agencies in the Portfolio which will, in future, require departmental oversight, the Department is working with the Department of Finance and Administration to achieve a successful implementation framework for the review.
Outlook for the coming year
Much of the focus for the coming year will involve the finalisation and implementation of reviews underway or completed in 2002-03.
In particular, priorities during the year will be the implementation of the Government's $180 million response to the Regional Telecommunications Inquiry, implementation of the ICT Framework for the Future in collaboration with key industry stakeholders, implementation of the Government's response to the Myer Report and the outcomes of the review of cultural agencies, completion of the review of the governance arrangements by the communications regulators, and responding to the Australian Competition and Consumer Commission report on emerging industry structure in the pay-TV market.
In addition, analysis will be ongoing into the competitive framework in communications services and as negotiations progress on an Australia-United States free trade agreement. The coordination of the Australian Government's involvement in the Melbourne 2006 Commonwealth Games will become more intensive, and work will be required in the context of reviewing the contribution made by the Government's Backing Australia's Ability programs and ongoing strategies to support innovation in the ICT sector.
In the area of corporate management, progress towards the renegotiation of the Department's outsourced information technology and human resources contracts will be an important focus during the year. Additional priorities will be the progressive implementation of the new Budget Estimates and Framework Review recommendations, and further work to refine the Department's processes for program monitoring and implementation.
The next financial year will be a challenging one for the Department. I am certain, however, that Departmental staff will meet these challenges with the same dedication and hard work that they have shown this year, and I would like to thank them, very sincerely, for their commitment and professionalism.
Helen Williams