Parliament of Australia

The JCPAA will welcome the Auditor-General and other representatives from the Australian National Audit Office (ANAO), in addition to the Department of Finance, and the entities included in ANAO’s 2021–22 Annual Performance Statements audits, to discuss the issues raised in that report.

Committee Chair Julian Hill MP said the financial information of a given entity alone could not determine if publicly funded programs were achieving their intended outcomes.

"Performance statement auditing is vital for this assessment," he said.

"This new function of the ANAO to audit performance statements has been fully supported by the committee since its pilot stages and will assist and improve the transparency, reliability, and quality of performance reporting across the Commonwealth," Mr Hill said.

"The committee looks forward to discussing the ANAO’s findings and deliberating on the future scope and purpose of these audits."

Details for the public hearing are:

Date: Friday, 28 July 2023
Time: 10am – 1.15pm
Venue: Committee Room 2R1, Parliament House, Canberra

The hearing will be broadcast live and will be accessible from the Parliament House website at https://www.aph.gov.au/News_and_Events/Watch_Read_Listen.

Further information about the inquiries is available on the Committee website.

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THE Housing Industry Association (HIA) Trades Report for the June Quarter 2023 shows continued improvement in the availability of skilled tradespeople across the country, according to HIA senior economist Tom Devitt.

The HIA Trades Report released today provides a quarterly review of the availability of skilled trades and any demand pressures on trades operating in the residential building industry.

“While the Index still reflects some of the most acute shortages of skilled tradespeople since HIA started this report in 2003, the trajectory is most encouraging,” Mr Devitt said.

“The Report’s Trades Availability Index registered -0.62 for the June Quarter 2023, compared with the -0.92 peak a year ago. An index of less than zero represents a shortage of tradespeople and an index of greater than zero represents a surplus.

“Some of the greatest improvements in availability over the last year have been in the trades of carpentry, roofing, and bricklaying, precisely where the most acute shortages had been a year ago.

“The return of skilled workers since the re-opening of Australia’s international borders in late 2021, is making a difference to a number of sectors, including house and apartment construction, and manufacturing businesses," Mr Devitt said.

“As tradespeople have become more available, the price of trades has also slowed. The price of skilled trades increased by 3.4 percent in the last year, compared to the 10 percent peak a year earlier. This is much closer to the 2 percent average annual increase that prevailed in the decade-and-a-half before the pandemic.

“The outlook is that as home building activity declines, demand for skilled trades will slow further," he said.

“The rise in the RBA’s cash rate over the last year has seen a significant drop in new work entering the pipeline. The record volume of projects awaiting commencement has shrunk, but there are still more than 100,000 houses under construction around the country.

“Builders have struggled to complete these projects, held back by the materials and labour shortages that have plagued the industry in the last few years," Mr Devitt said.

“Next year, the rise in interest rates that we have already seen is expected to produce the weakest year of new house commencements since 2012. An increasing number of projects will also reach completion.

“This is expected to produce a further easing of trades shortages, with the volume of homes under construction shrinking rapidly from late this year.

“Next year will be the ideal time for governments to start investing in new public housing stock. The timing of this investment will not only ensure that governments are able to gain the greatest return on their investment, as costs and delays will be at a minimum, but also ensure that skilled tradespeople are not lost to other industries and that the industry can rebound on the other side of this RBA-induced trough,” Mr Devitt said.

www.hia.com.au

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THE Parliamentary Joint Committee on Intelligence and Security (PJCIS) has commenced a review of rules made under subsection 53(2) of the Foreign Influence Transparency Scheme Act 2018 (FITS Act), relating to sharing information obtained under the Foreign Influence Transparency Scheme (FITS).

Subsection 53(3) of the FITS Act requires the committee to review rules made prescribing a new purpose for which information obtained under the FITS may be communicated to prescribed persons; and to report its comments and recommendations to each House of the Parliament before the end of the 15 sitting days’ disallowance period for that House.

The new rules amend the 2018 FITS Rules to authorise the Secretary of the Attorney-General's Department to communicate scheme information to the Minister and Department responsible for the Foreign Arrangements Scheme.

The Foreign Arrangements Scheme is administered by the Department of Foreign Affairs and Trade (DFAT). It requires State and Territory entities to notify the Minister for Foreign Affairs of pre-existing and prospective arrangements with foreign entities; and allows the Minister to cancel, vary or prevent an arrangement from proceeding if it is inconsistent with Australia's foreign policy or adversely affects Australia's foreign relations.

A small number of entities may be within the scope of both the FITS and the Foreign Arrangements Scheme. In such cases, sharing information under the Rules would assist DFAT to administer the Foreign Arrangements Scheme and would improve the interoperability of the two schemes.

The rules under review can be found at the following link - Foreign Influence Transparency Scheme Amendment Rules 2023.

Submissions to the Committee’s review are invited by Friday, August 11, 2023. Further information about making a submission to a parliamentary committee is available here.

Further information on the inquiry can be obtained from the Committee's website.

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THE Parliamentary Joint Committee on Intelligence and Security today commenced a review of the relisting of Islamic State, Boko Haram and Islamic State West Africa Province as terrorist organisations under Division 102 of the Criminal Code Act 1995.

The Australian Government first listed Islamic State in 2005, while Boko Haram and Islamic State West Africa Province have been listed under different names since 2014. The three organisations have been re-listed as terrorist organisations for a further three-year period commencing on July 1, 2023.

The relisting triggers the ongoing application of a number of offences under the Criminal Code which relate to membership of, support for, or association with the organisations.

All three organisations are religiously motivated violent extremist groups which pursue an extreme interpretation of Sunni Islam. Of these groups, Islamic State (IS) has the largest global footprint, and since it was last listed by the Australian Government IS has continued to undertake terrorist attacks in Syria, Iran, Israel, Iraq and Austria.

Boko Haram and Islamic State West Africa Province both operate primarily in Nigeria, and have reputations for adherence to an extremist ideology that promotes sectarian violence. Since they were last listed both groups have undertaken attacks against civilians and government officials.

Under s 102.1A of the Criminal Code, the committee may review listings of terrorist organisations and report its findings to each House of the Parliament within the 15 sitting day disallowance period for the regulations.

Members of the public are welcome to make submissions to this review. Submissions are requested by Friday, August 11, 2023.

Further information on the inquiry can be obtained from the committee’s website.

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THE House Standing Committee on Economics will next focus its attention on competition and dynamism in the supermarket, alcohol, and technology sectors, as well as in care services, as part of its inquiry into economic dynamism, competition and business formation.

Peter Harris, former chair of the Productivity Commission, will also discuss competition in the domestic airline industry. The committee’s next set of public hearings will be held via videoconference on July 25 and 26.

Committee Chair, Daniel Mulino, said the committee looked forward to hearing from Coles, Woolworths, Metcash, the Australian Food and Grocery Council, and the National Farmers Federation.

“The grocery retail sector is fundamental to the everyday lives of Australians," Dr Mulino said. "There are also high levels of market concentration in the sector, so it’s vital that we better understand the effects such concentration have on competition, particularly around price, for consumers.

“The supermarket sector also has a strong hold on the packaged alcohol market, which again has implications for consumers around price and on smaller players in the sector.

“So we will be probing this area as well,” Dr Mulino said, “especially with the local craft beer industry gaining in popularity. Australia’s independent brewers are renowned for their innovation so the committee is eager to ensure diversity in the beer industry and that our home-grown companies can continue to thrive."

The committee will hear from Coopers and the Independent Brewers Association.

Peter Harris, former chair of the Productivity Commission and author of the recent review into the Sydney Airport Demand Management Scheme, will also appear.

“Peter will shed light on competition in Australia’s commercial aviation market and on the outlook for business dynamism," Dr Mulino said.

Epic Games and Free TV Australia will also appear at this week’s hearings to give their perspective on the impact of Big Tech companies on their business models and on competition in the online gaming and broadcasting sectors.

Other companies appearing before the committee will be online platforms Mable and HireUp, which work in the disability and aged care sectors. Victorian Government Procurement will also appear, following on from appearances before the committee of social enterprises.

“This will allow the committee to complete its assessments on competition and productivity in the care sector, which is often under-appreciated as a driver of employment and innovative service delivery within the broader economy,” Dr Mulino said.

More details about the inquiry, including the full terms of reference, are available on the committee’s website.

Public hearing details

Date: Tuesday 25 July
Time: 9am to 2.45pm AEST
Location: Videoconference

Date: Wednesday 26 July
Time: 10am  to 4pm AEST
Location: Videoconference

The public hearing will be broadcast live at https://www.aph.gov.au/live.

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THE Joint Committee of Public Accounts and Audit (JCPAA) authorised an Order to be issued on June 27 to Mr John Magerison requiring him to answer questions put to him on April 26, 2023, and summonsing him to appear before the committee in a public hearing this Friday,  July 28..

However, the part of this Friday’s public hearing into procurement at Services Australia and the NDIA which was to hear from John Margerison can no longer proceed.

Mr Margerison’s lawyer has informed the committee that Mr Margerison is now resident overseas, having severed all ties with the country of Australia many weeks ago. Mr Margerison’s lawyer has not disclosed Mr Margerison’s whereabouts.

Further, as Mr Margerison claims via his lawyer to now be located and resident overseas, he now considers himself outside the jurisdiction of the Parliament.

Committee Chair, Julian Hill said the JCPAA would consider the letter from Mr Margerison’s lawyer at its next private meeting.

Mr Hill said, “That Mr Margerison’s lawyer now claims he has left and severed all ties with Australia is a somewhat surprising turn of events indeed. Mr Margerison’s whereabouts remains a matter of great mystery.

“Notwithstanding Mr Margerison’s refusal to fully address the questions put to him in April and appear this Friday, the JCPAA will continue to conduct this inquiry in a proper fashion. The committee will make findings based on the evidence before it. It remains within the JCPAA’s power to recommend referrals to other investigative bodies with additional resources and powers.”

The remainder of the hearing – which relates to the JCPAA’s inquiry into annual performance statements – is unaffected and will proceed.

Further information is available on the inquiry website.

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THE Joint Committee of Public Accounts and Audit (JCPAA) has tabled its report on the administration of Commonwealth grants. Four Auditor-General reports and three additional grant programs were considered in this inquiry which informed eight recommendations which, if adopted, will significantly strengthen the processes and transparency around Commonwealth grant awards.

Chair of the JCPAA, Julian Hill MP said, “Clear and concerning evidence of serial non-compliance with the Commonwealth Grants Rules and Guidelines (CGRGs) and program guidelines was presented. The requirements are not overly complex or onerous yet both the letter and the spirit of rules were routinely disregarded by Ministers and officials.

”Instead of transparently allocating public funds, the previous government pursued industrial scale rorting for blatantly partisan purposes. Rorting grants programs in this way not only wastes money, but also degraded public trust. The committee was especially appalled to receive evidence that politicisation of regional grants programs corroded public trust to the point some councils stopped applying due to the belief they would never get a fair go.

“Principles of fairness, a competitive process by default, transparency, and value for money were simply disregarded and records of critical decisions were not made or kept," Mr Hill said.

“It's difficult to know what is more perplexing. That the previous government did what they did with billions of dollars of taxpayer dollars? Or that they still do not acknowledge that what they did was utterly wrong.

“If the first step to recovery is to admit there is a problem, then it is clear from their attitude to this inquiry that the Liberal and National Parties are still in denial," he said.

“It is simply not good enough for those trying to defend the egregious behaviour revealed through the inquiry to say ‘no illegality was identified’ when assessment processes were repeatedly, systematically and systemically perverted. Especially so when funding decisions repeatedly resulted in ridiculously partisan outcomes. Just because you can do something, doesn’t mean you should.

“Dismissing legitimate criticism of the Liberals’ industrial scale rorting of grant programs as 'politically motivated' is peak irony."

Mr Hill said, “Ministers can and should apply their own critical judgement to and are perfectly entitled to accept or reject departmental advice. What the committee does not accept however is the lack of transparency under the previous government. Ministers are not ‘gods’ and are subject to the law and the rules and must record properly and fully documented reasons.”

The committee is recommending changes to the CGRGs to ensure that competitive processes are used by default and election commitments are clearly defined, that the roles of stakeholders are clarified, that ministerial funding approvals against agency recommendations are clearly recorded and reported promptly to the Minister for Finance, and that any ‘other factors’ by which grants will be assessed are fully transparent.

The committee’s inquiry focused in particular on instances of non-compliance with the CGRGs which are intended to achieve fairness, a competitive process by default, transparency of decision-making, and value for money.

The identified issues included an emerging trend towards non-competitive grant processes, a lack of a definition of election commitments, inadequate records of decisions taken by officials and ministers, and the use of unspecified ‘other factors’ in grants assessments. The committee also considered the future application of the CGRGs to non-corporate Commonwealth entities.

The committee’s report also examined the current use of centralised grants hubs to administer these programs and noted the Auditor-General’s findings that they have only been partly effective in delivering on the intended efficiencies and cost-savings. The committee concurred with the Auditor-General’s recommendations that more effective future planning and performance measures, and improved data quality, were needed for the hubs and has requested that the Department of Finance provide future updates on their implementation.

The committee’s report is available on the Committee website.

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THE committee will be holding a public hearing tomorrow for an inquiry into the National Redress Scheme.

Commencing from 11am AEST, the committee will hear evidence from organisations providing redress support services. The program is available on the Committee's website.

The inquiry is looking into a range of areas, including:

• The experience of First Nations applicants and applicants with disability in their dealings with the scheme.
• Accessibility, performance and effectiveness of support services and legal advice for survivors and their advocates.

Committee Chair Senator Catryna Bilyk said, "Submissions to the inquiry highlighted issues such as communication challenges, cultural safety, distance from services and a high demand for services.

"Navigating the process can be difficult. The committee is interested to hear about how accessibility could be improved and what strategies could help improve awareness of the National Redress Scheme."

A further public hearing is planned on Tuesday July 11, 2023. Details are expected to be announced soon.

Full details of what the inquiry is examining can be found in the terms of reference on the Committee’s website. An easy English guide is also available.

Public hearing details

Friday 7 July 2023
11am to around 3:30pm (Canberra time)
Committee Room 2R1, Parliament House, Canberra
Listen online at www.aph.gov.au/News_and_Events/Watch_Parliament

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