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Secretary's review
The year 2003-04 has been a busy one for the Department, but also one of significant achievement and one that sets the scene for further progress in the future.
Convergence of technologies and markets continues to shape developments in the information and communications sectors as Australia continues its rapid progress towards becoming a fully-fledged information economy. The Department has been conscious of the importance of convergence both to policy development and regulatory arrangements.
Convergence also has implications for administrative structures. The information economy functions of the former National Office for the Information Economy (NOIE) were transferred to the Department during the year to take advantage of the growing synergy between those two organisations. In addition, considerable progress was made in concert with the Australian Broadcasting Authority and the Australian Communications Authority (ACA) towards the merger of these two agencies to form an Australian Communications and Media Authority by 1 July 2005, as announced in the 2004-05 Budget context.
Adding to the increased interlinkages between the broadcasting, telecommunications, information technology and information economy areas of the Portfolio, there have been increasing synergies with arts and culture areas. In an era of rapid technological change, content creation - particularly through film and the digital arts more generally - for the telecommunications and broadcasting sectors, and the resulting intellectual property, is becoming increasingly important. Establishing the correct policy settings to harness the maximum benefit for Australia is a challenge for government and for the Department in its policy advising role.
Building partnerships internationally, nationally and across government
The Department has given particular attention during the year to the development of key partnerships at all levels of government, both nationally and internationally.
Perhaps the greatest focus at the international level during the year was the Department's involvement, across a range of Portfolio areas, in the consultative process underpinning Australia's negotiating position for the Australia-United States Free Trade Agreement. Negotiations covered the areas of telecommunications, e-commerce, audiovisual services, intellectual property and government procurement.
Also in June 2004, Australia's Strategic Framework for the Information Economy 2004-06: Opportunities and Challenges for the Information Age, was finalised after extensive consultation with other Australian Government agencies, state governments and the private sector. It outlines a vision and action plan to ensure that Australia maintains its position as one of the world's leading information economies.
Another priority task for the Department in the international sphere was the continued fight against doping in sport. With the adoption in the previous year of the World Anti-Doping Code, the Department is now contributing to the drafting of a UNESCO convention against doping in sport, for consideration by Ministers in December 2004.
The Department and the former NOIE, together with the ACA, have taken an active role both internationally and domestically in efforts to combat unsolicited electronic mail (spam) and to increase the level of trust and confidence in the online economy. This will be a continuing focus for the Department in 2004-05.
The National Broadband Strategy, a key response to the Regional Telecommunications Inquiry (RTI) that was released during the year, outlines a vision for broadband development and implementation and was a collaborative effort involving the states and territories. The National Broadband Strategy Implementation Group, chaired by the Department and with representation from all levels of government, has proved to be an effective partnership in the implementation and realisation of the Strategy.
In the cultural and sports sectors, the Department has continued its strong leadership role both within formal consultative government mechanisms and with the arts sector more generally. As one example, the negotiation with the Australia Council and the states and territories of the Visual Arts and Craft Strategy has resulted in joint government funding of $39 million over four years to enhance sustainability in the sector. The role of the Department in these negotiations was pivotal to the delivery of the whole-of-government results.
The Department gave priority to the coordination of an Indigenous Arts Centre Strategy and Action Plan which involved a set of targeted interventions across government aimed at building a strong and sustainable Indigenous visual arts and craft sector, and to provide commercial and employment opportunities in Indigenous communities. The Department has also played a catalytic role in the establishment of the Collections Council of Australia which was agreed to by the Cultural Ministers and which will provide strategic leadership for this important segment of the cultural sector, focusing in particular on the needs of regional collections.
Considerable cross-government consultation by the Department was important in leading the taskforce which supports the Minister for the Arts and Sport in his coordination of Australian Government assistance for the Melbourne 2006 Commonwealth Games, and in liaising with the Victorian Government on planning and delivery of funding and other assistance. An evaluation undertaken during 2003-04 found a high level of satisfaction across government departments and agencies with the Taskforce's effectiveness.
Ongoing policy development and review
Policy development and review is a major function of the Department and is discussed throughout the report. Several initiatives, however, merit special comment in view of the substantial engagement by the Department in the development process.
In 2003-04, there were a number of significant reviews in the broadcasting area of the Department. The Department chaired the Digital Radio Study Group which examined issues relating to digital radio, provided policy advice on the revision of the anti-siphoning scheme announced in April 2004, and completed two reviews into arrangements for regulating online content and services - the Online Content Co-regulatory Scheme and the Interactive Gambling Act. A series of statutory reviews of the digital television regulatory framework also commenced.
During the year, the Department also conducted a major review of the Universal Service Obligation (USO) which ensures that a standard telephone service and payphones are reasonably accessible to all Australians wherever they live or do business. In June 2004, the Government announced that there would be no change in the broad legislative USO framework.
Reviews undertaken in the context of the 2003-04 Budget also included a number that were significant in the policy development process including those of the Australia Council's triennial funding and the Regional Arts Fund.
Program implementation and evaluation
Program administration, in all its facets, continues to be a departmental priority.
Perhaps the most significant implementation task that faced the Department during the year concerned the Government's response to the report of the RTI. Overall, implementation has progressed well. Of the 39 recommendations, 17 have been completed, 15 are well advanced and seven are linked to the Telstra sale legislation. There have, however, been some slippages in timeframes (including for the Higher Bandwidth Incentive Scheme) because of the complexity of the issues involved.
Increased accessibility to broadcasting services through the implementation of the black spots programs is progressing well, although there was still slippage in implementing some projects and the Department continues to work actively with funding recipients to encourage them to meet milestones and acquit projects. The Television Black Spots - Alternative Technical Solutions program has faced particular challenges due to the additional technical complexity involved in providing digital broadcast solutions in locations with challenging terrain.
The Networking the Nation Program (NTN), which provided for the roll-out or upgrade of telecommunications infrastructure, is now largely complete and the Department focused on assessing final reports and acquittals by grant recipients during the year. An evaluation of the NTN program was nearing completion. A detailed review on the program is provided in this report.
In the important area of security, the Department moved promptly to establish the organisational framework for critical infrastructure protection under the Trusted Information Sharing Network, and the IT Security Expert Advisory Group is in operation and providing well-regarded technical advice to industry and government. In addition, the Department worked with industry and research community participants in the Framework for the Future process to implement the recommendations of the Enabling Our Future report and to keep its findings under review.
Considerable work has also been undertaken to tighten the focus and delivery of arts access programs, in particular in regional Australia, and of the range of cultural touring programs. Compliance with grant conditions by successful applicants to the touring programs has been consistently high.
Departmental management
The Department has continued to work to strengthen its management systems and has made significant progress in improving its corporate and financial management processes and its governance arrangements.
Governance arrangements continued to have a high priority. The Executive has strengthened further the performance and structures of the corporate management committees and a system of self-assessment was piloted for these committees during the year. The pilot was successful and the system will be fully implemented in 2004-05.
The progressive development and revision of key governance documents included the Corporate Plan, Fraud Control Plan, Risk Management Policy and Guidelines, Business Continuity Plan, Workplace Diversity Plan and Harassment Plan. Work began on the development of an Intellectual Property Policy and a non-financial performance reporting structure for the Department to be implemented in 2004-05.
Following extensive consultation with Arts and Sport Portfolio bodies, the Department also finalised the revision of the publication General Guidance for Directors of Statutory Authorities to take account of developments in corporate governance and advice on best practice.
The Department's Executive Management Group established a Human Resource Management Committee during the year to provide strategic advice on human resource issues. The committee oversaw the development of, and the commencement of transition to, a new human resource service delivery model for the Department which involves the restructuring of the current outsourced arrangements to a more strategic approach, providing stronger in-house management and accountability. Payroll and leave administration functions will continue to be outsourced. The collection of more complete workforce data commenced, to assist with the development of the Human Resource Strategic Plan and the introduction of upgraded succession planning arrangements within the Department.
In addition, the Department successfully negotiated its Certified Agreement for 2004-07, with 92 per cent of staff voting in favour of the Agreement.
The Information Management Committee oversaw the successful transition to new information technology and communication providers.
The Department did not perform to target on some aspects of ministerial support. In particular, responses to Ministers' correspondence and to Parliamentary Questions on Notice were not of a sufficient standard. This was largely due to the need to coordinate responses across a large number of Portfolio agencies, and the Department is exploring systems to improve response times in 2004-05.
The Department's work in refining its financial management controls and practices over the last few years has led to considerably stronger budget management across the Department, and the success of this work is reflected in the Department's improving budget position. Further improvements will be made with the release on 1 July 2004 of a revised departmental Chart of Accounts and upgrades to the Department's Financial Management Information System to improve reporting capabilities.
The legislative workload of the Department in 2003-04 was considerable. It included the development of Bills and subordinate instruments relating to improved telecommunications interception and national security arrangements, the regulation of premium telecommunications services, the regulation of Australia Post, enhanced functions for the Australian Sports Drug Agency and amendments to the broadcasting anti-siphoning scheme. Bills for the full private ownership of Telstra and the reform of media ownership rules were re-introduced in Parliament.
The Legal Group also played a key role in assisting the Department in managing risk and in meeting its accountability obligations, including conducting a major review of the Chief Executive Instructions, which is close to completion.
The year ahead
The Department faces a challenging but interesting year in 2004-05.
On 1 July 2004, the Indigenous arts, cultural, sports and broadcasting programs of the Aboriginal and Torres Strait Islander Services agency were transferred to the Department. The establishment of a regional service delivery network will be a significant challenge for a department that has hitherto been Canberra-based. The potential for improved delivery of Indigenous programs across the Department, however, is considerable.
A number of important reviews that are currently underway or recently finalised will also be a priority for 2004-05. The statutory reviews of the free-to-air digital television regime will be a particular focus. A departmental review of audiovisual content delivered over new mobile services will be completed and advice will be provided on options for digital radio following government consideration of the Digital Radio Study Group Report. Reviews of the symphony and pit orchestras and of elite music training through the Australian National Academy of Music and the Australian Youth Orchestra will also be important for the future of the cultural sector.
Together with the Attorney-General's Department, the Department will be working over the next year to ensure that Australia's copyright regime is aligned with the changing digital environment. The current review of the Copyright Amendment (Digital Agenda) Act 2000 will provide an opportunity to ensure that the legislation continues to meet its objectives of promoting the production and use of digital content and provides an effective copyright regime for copyright creators, investors, users and distributors, including Internet service providers. The role of Indigenous artists and communities in relation to copyright policy and practice will continue as a priority, as will the management of the Government's own intellectual property.
Maintaining and improving the effectiveness of national and international electronic commerce systems will continue as a major activity. The emphasis will be on trust, security, interoperability and authentication, particularly through work aimed at achieving effective multilateral collaboration to combat spam and developing effective mechanisms to address emerging e-security threats.
Finally, the Department will continue to give priority to further upgrading its program management skills. A particular emphasis will be placed on completing the Television and Commercial Radio Black Spots programs, both of which cease in 2004-05, and on implementing solutions under the Television Black Spots - Alternative Technical Solutions program.
The achievements over the last year would not have been possible without the hard work and dedication of the Department's people. I would like to take this opportunity to thank them, most sincerely, for their commitment and professionalism.
Helen Williams