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 Standing Committee on Treaties will hold a public hearing today into the agreement between Australia and the Republic of Serbia on Social Security.

Committee Chair, Josh Wilson MP said, "A social security agreement provides for two countries to share responsibility for paying social security benefits to people who move between countries."

People who move between countries may not make contributions to a social insurance scheme ordinarily sufficient to receive a benefit, or may not satisfy residence requirements for a benefit. Additionally, even when a person may otherwise meet the requirements for a benefit, some countries will only pay benefits to citizens or residents, or reduce the rate of payments to non-residents.

Social security agreements require the payment of a benefit in the other country on a non‑discriminatory basis; specify alternative means by which a person may satisfy residence or contribution requirements to qualify for a benefit; and establish a method for calculating the rate of payment.

Mr Wilson said, "Australia currently has social security agreements with 31 countries. The committee looks forward to examining the provisions of this treaty and hearing from witnesses as to its potential benefits."

The committee will take evidence from officials from the Department of Social Services, the Treasury, and the Department of Foreign Affairs and Trade.

Public hearing details

Date: Thursday 6 July 2023
Time:  3.30pm
Location: Committee Room 1R3 and by videoconference

The hearing can be viewed on the APH website and the program for this hearing is available on the Committee website, along with further information about the inquiry.

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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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RENEWABLE energy technology is one of the sectors that will be examined by the House Standing Committee on Industry, Science and Resources in its inquiry into developing advanced manufacturing in Australia.

The Committee will hear ideas from stakeholder organisations on how best to develop Australia’s advanced manufacturing capability. Representatives from the health, unions, resource manufacturing, and energy sectors will explore the current advanced manufacturing landscape in Australia, the opportunities and challenges affecting the sector.

Committee Chair, Rob Mitchell MP, said, ‘‘This public hearing will afford the committee a further opportunity to hear the vital views of stakeholders involved in advanced manufacturing. These views will contribute to the committee’s ability to develop appropriate recommendations to enable the growth of sovereign capabilities and address issues affecting the sectors growth.’’

The public hearing will be held on July 5, 2023, at 9am at the Sydney Masonic Centre, Sydney. It will be audio broadcast on the Parliament’s website www.aph.gov.au.

The committee started its inquiry into developing advanced manufacturing on February 15, 2023.

Further information about the inquiry, including the Terms of Reference, is available on the committee’s website: aph.gov.au/isr.

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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 Joint Committee of Public Accounts and Audit (JCPAA) has tabled its report on the 2021–22 Commonwealth Financial Statements audits by the Australian National Audit Office (ANAO), a key transparency and accountability measure for the Commonwealth.

The committee’s inquiry focused its examination on the financial sustainability of Home Affairs, Agriculture and the NDIA, Defence’s use of appropriations, and cyber security issues.

Chair of the JCPAA, Julian Hill MP, said, "This inquiry found an unusual range of concerns regarding financial sustainability of key departments, cyber security and a surprising, albeit arcane, question regarding the legality of Defence’s payment of compensation for the Attack Class Submarines.

“The committee was concerned by evidence that the Department of Home Affairs’ budget was fundamentally misaligned with the core activities of the department for years under the previous government. This was made worse because evidence revealed it was forced to cop $180 million of further cuts due to the Liberals’ failed $92 million visa privatisation.

“Agriculture has been facing an underlying structural cash deficit for many years, driven by the cost recovery of biosecurity functions. Given the critical importance of biosecurity activities and the economic and environmental costs of breaches, the committee is of the view that the situation was fundamentally unsustainable and the government and department must respond.

“The committee has welcomed the current review of the NDIS given the evidence that the scheme costs have been growing faster than anticipated for many years, posing risks to the long term sustainability of critical supports to the disability sector.”

The committee was also concerned about Defence’s problematic use of non-operational (‘equity’) expenditure from Appropriation Act (No. 2) 2020–21 to fund the termination payment for the French Attack Class Submarine project, an operational expense.

"The committee’s strong view is that this payment should not have happened in this way and should not be allowed to happen again," Mr Hill said. "Defence clearly understood this was a potential Constitutional issue and sought legal advice. The JCPAA’s view is that this is not really a matter for the courts, it is a question of Parliamentary control over the Executive as Parliament’s intent should not be subverted in the name of quick action.”

The committee has recommended that the Minister for Finance review this matter and accept the JCPAA’s conclusion, and that future Appropriation Bills clarify that an ‘equity injection’ or ‘equity funding’ is non-operating expenditure.

The report also examined cyber security issues under the Protective Security Policy Framework (PSPF), which continue to represent the majority of ANAO’s adverse findings in Financial Statement’s audits.

"The Auditor-General has identified a persistent optimism bias in how agencies self-report their cyber security compliance," Mr Hill said. "This issue has gone on for too long, and it’s time government consider implementing an assurance regime on agencies’ self-reporting on cyber security compliance. Agencies should not be able to disguise the true situation from the government in relation to public sector cyber security vulnerabilities.”

The report makes six recommendations related to the financial sustainability of Home Affairs and NDIA, the proper use of appropriated expenditure, and processes for providing greater assurance and transparency on cyber security compliance under the PSPF.

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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THE Joint Committee of Public Accounts and Audit (JCPAA) has tabled an interim report for its inquiry into the Defence Major Projects Report (MPR) and the procurement of the Hunter Class Frigates.

The Committee’s report examines issues relating to the cost, progress, technical attributes and governance of major Defence acquisitions raised in the 2020–21 and 2021–22 MPRs.

Chair of the JCPAA, Julian Hill MP said, "The report makes recommendations to address ongoing issues such as Defence not clearly reporting on capability milestones and its inconsistent approach to capturing lessons learned from past projects.

“The Committee was also concerned about Defence’s 13 month delay in escalating the Civil Military Air Traffic Management System to the Projects of Concern list. There’s no point in having the ‘Projects of Concern’ system if there are delays of over a year in adding projects to the list which the Minister has decided are clearly off track.

"Doing so limits transparency to the Parliament and the public on the performance of major projects.”

Mr Hill said, "This inquiry’s next phase is to consider Defence’s procurement of the Hunter Class Frigates, as well as the scope and guidelines for Defence Major Project Reports to ensure that they are fit for purpose into the future.”

The Committee’s interim report and further information on the inquiry is available on the Committee website.

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