John Hogg (President) Share this | Hansard source

The answer to the honourable senator's question is as follows:

1 On 9 June 2011, Senator Faulkner gave notice of his Question (#682) to the President of the Senate. Question 682 was divided into seven parts—and each of those parts was also divided into several sub-parts.

2 As a preliminary to the detailed answer to each question, the following overview of DPS procedures and some history is provided as background information.

Heritage and asset management

3 DPS is responsible for management of thousands of Commonwealth assets within the Parliament House building and precincts. This responsibility was inherited primarily from the former Joint House Department, Department of Parliamentary Reporting Staff, and the Department of the Parliamentary Library in 2004 and, before that, the Parliament House Construction Authority (PHCA).

4 Not all assets and items of heritage value (or potential heritage value) located within Parliament House are the responsibility of DPS. Some are controlled by the Chamber departments and the Department of Finance and Deregulation. Some of the assets for which DPS has (temporary) stewardship are on loan.

5 Heritage value changes over time—an item that may be assessed as having no heritage value at any given point in time could later be assessed as having major heritage value and significance. Different people will also hold different views about the relative importance of items and their priority for preservation. The challenges associated with determining heritage significance are identified in work done under the auspices of the Collection Council of Australia's Significance Methodology1 (Attachment A). The Significance Methodology is now widely used across the cultural heritage sector, and within DPS, and was refined over a ten-year period (originally released in 2001, and then substantially reviewed and re-released in 2009). The methodology provides a standard set of criteria for defining "the meaning and values of a cultural heritage item or collection". However, the authors also note that significance is "relative, contingent and dynamic".

6 There is a very broad framework of governance and policy and procedural documents that apply to this asset and heritage management role for DPS. These documents range from 'whole-of-government' instruments—such as legislation, regulations, Finance Minister's Orders and Department of Finance guidelines—through to specific DPS policies, procedures and guidelines. A number of these are outlined in more detail in the responses that follow.

7 This governance and policy framework is not static. The approach across the Commonwealth to accounting for and managing assets—including cultural heritage assets—has evolved over the past decade or so.

8 There are a number of control mechanisms in place to support this governance framework. DPS is audited annually by the Australian National Audit Office (ANAO) as part of annual reporting processes. Additionally, the DPS Executive approves an annual internal audit program that is overseen by the Audit Committee of DPS. The Audit Committee has an independent Chair.

9 DPS takes its asset management role very seriously, as well as its responsibility for upholding heritage values inherent in the building (and embodied in moveable objects within the building). The resource implications of managing and maintaining this extensive collection of assets are significant. Judgements will always have to be exercised about the relative priority of the range of tasks to be undertaken, as well as the relative value of the assets requiring our care and attention. This is particularly difficult in the context of an operating budget that is progressively diminishing in real terms and the expectations of the community about prudent financial management in the public sector. DPS must also strike a balance between the sometimes competing requirements of managing heritage issues and satisfying building occupants' requirements for a functional, efficient and safe workplace.

10 In relation to the classification of heritage items as cultural heritage assets (and consequent implications for disposal of those assets), the Finance Minister's Orders relating to Heritage and Cultural Assets state2:

(a) 37.1 Heritage and cultural items must only be recognised as assets where they meet the asset definition and recognition criteria set out in AASB 116 or AASB 138.

(b) 37.2 Only assets that are primarily used for purposes that relate to their cultural, environmental or historical significance are to be accounted for as heritage and cultural assets.

(c) 37.51P Heritage and cultural items do not include structures constructed to assist with the display, transport or storage of the asset. For example, backdrops, hanging apparatus, storage racks or protective cases are not captured by the definition of a heritage or cultural asset unless the item has such value in its own right or is an integral part of the item. An example of an asset being an integral part of a heritage and cultural asset might be the original frame surrounding a painting that is classified as a heritage and cultural asset.

Asset Recognition Criteria

(d) 37.71G Not all heritage or cultural items will meet the accounting definition of assets despite having intrinsic heritage value. Only items that are useful to the entity in achieving its objectives and have a financial value that can be reliably measured are recognised as assets.

(e) 37.72G Where a heritage and cultural asset is irreplaceable and has no market price, it is unlikely that its value can be reliably measured.

Heritage and Cultural Items

(f) 37.73G The AAS contemplate indefinite useful lives for some assets and non-depreciation in circumstances where assets have indefinite useful lives.

(g) 37.74G Heritage and cultural assets are assets used for the community's benefit, and represent, in part, Australia's cultural and historic background. Generally such assets attract funding from the budget for preservation, curation and restoration activity, ensuring these assets remain part of Australia's heritage for as long as possible.

(h) 37.75G Heritage and cultural items are buildings, other structures, works of art, artefacts, collectables, historical treasures, nature reserves, national parks, or similar items, which are used for their cultural, environmental or historical significance. Heritage and cultural assets will generally be:

(i) 37.77G One example of an item subject to section 37.2 is buildings of historical interest that are used primarily to provide office accommodation. These should not be accounted for as heritage and cultural assets.

11 Based on the Finance Minister's Orders, the following comprise the Heritage and Cultural assets over which DPS has stewardship.

(a) rotational art collection;

(b) architectural commissions (which comprise artworks commissioned during the design of the building, including some furniture);

(c) Historical Memorials Collection;

(d) Official Gift Collection;

(e) constitutional documents; and

(f) archive materials.

12 These collections had a total value of some $77.4 million at mid-2010 and are frequently referred to as the Parliament House Art Collection.

13 Classification and listing of other items that might have heritage or historic value has been an iterative process, and, in many cases, DPS (and the previous Joint House Department) inherited responsibility for items that were not registered as assets, or items that were registered as assets but were very poorly described and controlled. Over a number of years, there has been significant work done to improve the quality and accuracy of asset registers.

14 Decisions about the retention or disposition of assets with some historic or heritage significance require an awareness of the resource implications and sustainability of retention of the material. In particular, classification of items as cultural heritage assets carries an obligation to store and preserve that material for indefinite periods in accordance with relevant standards. This incurs a significant cost for the Commonwealth. This issue is reflected in the Finance Minister's Orders [see para 10(f)–(g) above]. In the last decade or so, this point has also been reinforced by the ANAO in its 19983 (Attachment B) and 20054 (Attachment C) performance audits relating to safeguarding national collections. In particular, the 1998 audit report made the following note.

The ANAO recommends that, in order to ensure the continuing quality of their collections, all institutions allocate a high priority to identifying items for possible disposal, except those items covered by legal deposit obligations or equivalent.

15 The authors of Significance also note that "significance assessment is vital to make the best use of scarce resources for collecting, conserving, documenting and digitising".

16 Since 2006, DPS has made useful progress in managing cultural heritage items and other building related assets, including the following.

(a) Systems and procedures have been progressively developed for management of the Parliament House Art Collection (including the Historic Memorials Collection and Official Gifts Collection, and art furniture). Many important items were either not previously listed as part of the collection, or their listing was incomplete or inaccurate. Artworks and gifts have been fully catalogued and described; independent formal valuations have been conducted; and policies and guidelines relating to their care and use developed and implemented. This has also led to better conservation and maintenance outcomes, and improved inventory control for these items.

(b) Refinement of the DPS approach to capital works, to take account of heritage and design integrity considerations.

(c) Environmental management and performance targets—such as energy consumption reductions and implementation of water restrictions—have been achieved without long-term impact on the building and precincts Where there is impact (such as by turning-off water features), other compensatory measures have been put in place.

17 The building itself, and the most important objects and artworks within it—such as Magna Carta, the Tom Roberts painting, and the Great Hall Tapestry—are regularly evaluated and independently confirmed as being in very good condition.

18 Nevertheless, we recognise the need for continual improvement and have taken the opportunity—following the May Budget Estimates hearings—to initiate a number of new measures including an internal audit investigation into the disposal of two billiard tables; a review of asset disposal policies; and a survey to identify and assess items with potential heritage values (beyond the Parliament House Art Collection). These activities will supplement work that DPS had already commenced to finalise a Heritage Management Framework for Parliament House.

Answer

(1) (a) As at 23 June 2011, the number of full-time equivalent (FTE) by classification is detailed in the following table. It should be noted that FTE varies from fortnight to fortnight as a result of the use of casual employees. The FTE figure at 23 June reflects payments to casuals employed during the May/June sitting weeks.

(b) The Average Staffing Level (ASL), or average FTE for 2010-11 was 721. The projected number of ASL or average FTE for 2011-2012 is 724. No projections have been made on associated classifications for 2011-12. No projections have been made on numbers and classifications for 2012-13 and 2013-14.

(c) (i) and (ii) The number of staff separations and method of separation for calendar year 2005 to 23 June 2011 are detailed in the table over the page

(iii) DPS's Exit Interview records refer to 'workplace harassment' OR workplace harassment, bullying or discrimination'—bullying is not specified separately. Below is listed the number of incidents of workplace harassment-type incidents reported to or recorded by DPS.

* The instance in 2010–11 led to a formal investigation. Formal investigations were conducted for 2 of the 5 instances in 2009–10.

(d) DPS deals with complaints and incidents of workplace harassment and bullying in the following ways:

Policies on appropriate workplace behaviour

DPS has incorporated its commitment to the Parliamentary Service Values and Code of Conduct in the following key corporate documents:

DPS also has the following policies and guidelines that govern behaviour in specific contexts:

Governance papers

No. 24 External Communications ( Attachment F )

Personnel/HR papers

No. 4 Workplace Diversity ( Attachment G )

No. 8 Behaviour outside the workplace ( Attachment H )

No. 9 Performance Management ( Attachment I )

No. 24 Performance Management for SES ( Attachment J )

No. 34 Internet and email use ( Attachment K )

People Management Paper 1.1

No 1.1—Procedures—Procedures for investigating and determining breaches of the Code of Conduct (includes Parliamentary Service Values and Parliamentary Service Code of Conduct) (Attachment L)

OHS papers

No. 6 Workplace harassment and bullying ( Attachment M )

The potential consequences of not following these policies/guidelines are clearly articulated.

Performance Management

Expectations of appropriate behaviour and adherence to the Parliamentary Service Values and Code of Conduct are integrated into performance agreements and reviews. Refer to Personnel/HR Paper No 9-Performance Management ( Attachment I ) and Personnel/HR Paper No 24-Performance Management: Senior Executive Service ( Attachment J ).

Informal processes to resolve issues

If an employee believes that they are being, or have been, harassed in the workplace, there are a number of informal avenues available to resolve the situation including:

These informal avenues are outlined in OHS Paper 6–Policy–Workplace harassment and bullying ( Attachment M ) .

Formal processes to resolve issues

If informal approaches fail to resolve the situation, or if the alleged harassment is serious in nature, the following formal processes are available:

These formal processes are outlined in OHS Paper 6–Policy–Workplace harassment and bullying ( Attachment M ).

Principles for managing workplace behaviour

The Workplace harassment and bullying policy includes principles for managing workplace behaviour to ensure procedural fairness.

Record keeping and access to records

The Workplace harassment and bullying policy states that proper records of every complaint and any action taken are to be maintained in the event that the complaint leads to further processes or misconduct.

Education and Awareness programs

DPS has education and awareness programs aimed at developing an awareness of what desirable behaviours are and how to encourage a culture of respect, as well as an awareness of what negative and unacceptable workplace behaviours are (ie bullying and harassment) and the consequences of the inappropriate behaviour. Examples of these training programs, provided regularly and corporately funded, are listed below:

(e) The exit interview survey asks if a respondent has ever experienced or observed workplace harassment, bullying or discrimination. The number of times that question is answered in the affirmative is provided in the table above. Where a former employee provides sufficient detail to identify any incident of alleged bullying, the processes and procedures outlined in OHS Paper 6—Policy—Workplace harassment and bullying ( Attachment M ) are followed.

(f) DPS analyses data collected through the following mechanisms for indicators of likely workplace issues and measures of success:

(i) Staff satisfaction surveys

(ii) Customer satisfaction surveys

(iii) Comparisons to other agencies (annual State of the Service reports)

(iv) Staff retention/turnover rates and unusual patterns of internal movements

(v) Rates of sick leave and other unscheduled absences

(vi) Information from exit interviews with specific questions about experiencing and witnessing harassment and bullying

(vii) The number, type and cost of compensation claims

(viii) Quarterly reports from DPS's Employee Assistance Provider, Davidson Trahaire Corpsych;

(ix) Number of staff attending targeted training

(x) Discussion at DPS Harassment Contact Officer Network meetings

(2) (a) Other furniture, fittings and fixtures from the former staff recreation room (in addition to billiard tables).

(i) pool table:   sold at auction.

(ii) ping pong tables: one relocated to Health and Recreation Centre, and one in storage.

(iii) dartboard and cupboard: relocated to DPS Building Fabrics Services (BFS)for storage and future reuse in APH.

(iv) trophy cabinet and trophies:

(v) piano: relocated to childcare centre for use with the children.

(vi) tables: relocated to furniture store for storage and future reuse in APH.

(vii) chairs: relocated to furniture store for storage and future reuse in APH.

(viii) light fixtures—down lights: reinstalled in Staff Dining Room.

   pendant lights: 4 x returned to DPS Electrical for future reuse in APH (spares)

     1 x returned to DPS Building Information for records.

     16 x disposed to scrap.

(ix) carpet: Staff Dining Room: most carpet retained in place; but, where replaced with parquetry, the carpet was disposed to landfill (being too worn for re-use)

  Staff Recreation Room: disposed to landfill (being too worn for re-use)

(x) accessories: Snooker Table rules: relocated to NG 61 (new office area that incorporates former Staff Recreation Room) to be hung on wall.

(xi) other items:

  7 x retained and reinstalled in NG 61

  2 x returned to DPS Building and Security Projects (BSP) for possible future reuse in APH. Stored in Plant Room 9.

   bottom panels: retained for refurbishment, modification and reinstalled in NG 61

   top panels: disposed to scrap.

   top panels: retained for refurbishment, modification and reinstalled in NG 61

   bottom panels: disposed to scrap.

  balance: disposed to scrap.

  other outlets: disposed to scrap.

(b) (i) The existing internal guidelines for DPS in CEP 4.3 make provision for consultation with DPS Art Services before disposal of any items with possible cultural and heritage values. However, none of the subject items for disposal were listed in the cultural and heritage asset class in the DPS asset registers.

(ii) The billiard tables and pool table were sold by auction. All other disposals (outlined above) went to scrap or landfill.

(iii) AllBids, for the auction items.

(iv) 2 x Billiard Tables original value $5,800 ea. No value recorded for the pool table or accessories.

(v) At time of sale, the billiard tables had a value of $1,500 each—the valuation was provided in June 2010 by the Australian Valuation Office.

(vi) Billiard tables each had a reserve of $2,500; pool table had a reserve of $2,000.

(vii) $2,500 for each billiard table; $2,000 for pool table. (AllBids initially underpaid DPS by $11.12 for the second billiard table.)

(vii) The items sold were administered assets and, as such, the funds realised by the sale were returned to the Official Public Account.

(ix) The sale of all three tables was settled on 6 September 2010. Records available to DPS indicated that the billiard tables were purchased by the PHCA for Parliament House and, prior to the 2010 sale, were owned by DPS. DPS has found no records about the acquisition of the pool table. AllBids does not disclose the identity of the purchaser. Subsequently, a DPS staff member has stated that he bought one of the billiard tables.

(c) See answers to (a) above.

(d) No, Old Parliament House (OPH) was not contacted before the sale of the billiard tables. Records showed that these tables were purchased new by the PHCA. It is noted that two other billiard tables had been returned to OPH in the year 2000.

(3) (a) 18

(b) Displaced staff were from the Governance and Business Management (GBM), and Strategy sections. GBM staff are currently in the new accommodation (NG 61)—which includes the site of the former Staff Recreation Room. Strategy staff are now permanently located in S1 118 as a result of a series of office moves that were facilitated by the creation of office space in NG 61.

(c) The new NG 61 accommodation has facilities for 65 staff. By late 2011, it will be fully occupied by staff from the Projects Branch, including the Art Services section. GBM and Strategy staff will be located, next to the DPS Executive, in space vacated as a result of a series of moves made possible by the transfer of Projects and Art Services staff to NG 61. Amongst other matters, consolidation of Projects staff and Art Services staff in NG 61 will release space in the Parliamentary Library for possible use by the proposed Parliamentary Budget Office.

(4) Information relating specifically to the Parliament House Art Collection (PHAC) (which includes the Gifts Collection and commissioned art furniture) is provided first in response to sub-questions—(a)–(f)—followed by information relating to other (non-PHAC) assets managed by DPS.

Parliament House Art and Gifts Collections

(a) Policies specifically related to management of the Parliament House Art Collection include the following.

(i) Operating Policy and Procedure No. 17—Parliament House Art Collection (incorporates the Rotational Collection Acquisition Policy) (AttachmentN);

(ii) Operating Policies and Procedures No. 19—Allocation of artworks to Members of Parliament (Attachment O)

(iii) Official Gifts Collection Policy (Attachment P)

(iv) Historic Memorials Collection: Guidelines for the selection of artists and processes for the procurement of portraits (Attachment Q)

(v) Parliament House Art Collection De-accessioning Policy (Attachment R)

(vi) Art Advisory Committee Terms of Reference (Attachment S)

(vii) Parliament House Art Collection—Stocktake procedures (Attachment T)

(b) The PHAC De-accessioning policy (Attachment R) defines procedures for PHAC disposals. The PHAC is independently re-valued every four years (most recent valuations—in 2005 and 2009—were conducted by the AVO).

(c) The PHAC De-accessioning policy states that: "Where appropriate, the Presiding Officersmay require any person or organisation arranging the sale of the de-accessioned item to keep its provenance confidential."

(d) The Art Services section of DPS maintains a collection management system (catalogue database), which records comprehensive details about the PHAC (including sub-collections such as the Historic Memorials Collection, Official Gifts Collection, commissioned Art Furniture, and archival materials designated for retention as part of the PHAC). Collection items are registered in the system by staff at the time of their acquisition (whether by purchase or gift) and updated as appropriate (for example, movement/location details are updated every time an item is moved). There are currently over 6000 records in the database; but not all 6000 records represent individual items. Some records represent 'parent' and 'child' components of items; and some items are listed for tracking and information management purposes, but are not assets that belong to DPS. Examples of these are the Tom Roberts painting, which is owned by the Royal Collection; and the Yirrkala Petitions, which are owned by the Department of the House of Representatives. The PHAC itself encompasses around 5000 artworks assets that are owned by DPS.

(e) A sample stocktake (equating to 10% of the Collection) is conducted each year by Art Services staff. The last 100% stocktake of the collection was conducted in 2005. The practice of undertaking annual 100% stocktakes of the PHAC has been discontinued, as it was very resource-intensive relative to the levels of risk, and had a major impact on normal service delivery.

An additional factor considered in moving to a sample approach is that the PHAC has very high mobility/visibility (eg high volumes of movement of artworks such as after an election). This process serves as a substantial stocktake and it can be quickly noted if items are missing—or some 'missing' items can be found to have just been mislocated (see table below). The sample stocktake approach is consistent with findings by the ANAO in the 2004–05 Audit Report Safe and Accessible National Collections7, (AttachmentC)and uses similar methodology to the Australian War Memorial, which was cited by the ANAO (in the 2004–05 audit report) as representing best practice.

Stocktake results for the last five years are summarised in the table below.

(f) Details of items disposed of or de-accessioned from the PHAC since 2000 are summarised in the table below. Many of the de-accessioning actions listed date from between 2003 and 2005—this relates to the progressive introduction (between 2001 and 2004) of a comprehensive catalogue database of items in the PHAC, and implementation of more rigorous stocktake procedures. Consequently it was identified that a number of items had been 'registered' in the collection prior to (or in) 1988, but had either been missing for sometime, or had never been physically transferred to Parliament House (some were also listed in asset registers of other cultural agencies).

In addition to items listed in the table below, there are a number of items that are currently listed as 'pending' for de-accessioning by DPS Art Services. These items include:

(i) a glass plate and a ceramic bowl that have been damaged beyond repair;

(ii) three items that were identified as missing in the 2002 and 2004 stocktakes (one craft item, one photograph, and one furniture item); and

(iii) a number of items that have been identified as highly suitable for transfer to the Museum of Australian Democracy at Old Parliament House. These items originate from Old Parliament House (and some are physically located there), and records suggest they were never intended for permanent transfer to the new Parliament House, but final decisions were held off until the ongoing status of Old Parliament House was resolved.

Items that are identified as 'pending' de-accessioning will be referred to the Presiding Officers for consideration in due course, in accordance with the PHAC de-accessioning policy.

[Part 2 of Answer to (4)]

Non-PHAC assets

(a) DPS has asset accounting policies and procedures that comply with the Financial Management and Accountability Act 1997 (FMA) and Regulations, the Finance Minister's Orders and the requirements of Australian Accounting Standards. Governance arrangements are set out in a range of documents (attached) including a set of DPS Chief Executive Instructions (CEIs) (Financial Paper No. 3—Chief Executive InstructionsAttachment U), which underpin the internal financial management practices of DPS; and Chief Executive Procedures (CEPs), which expand and underlie some of the CEIs. There is a specific CEP (4.3) (Attachment V) governing disposal of public property.

(b) The policy for disposal of assets is covered in the documents listed above. Valuations are conducted regularly—in accordance with attached DPS Financial Paper No. 2—Accounting Policy 2.1 Property, Plant and Equipment and Intangibles (Attachment W)—by independent, appropriately qualified valuers. DPS engages the Australian Valuation Office for the purpose of carrying out its valuations.

(c) For any items sold through AllBids, AllBids has advised that they do not disclose provenance of the items being disposed. However, items such as broadcast equipment may be sold through industry magazines or business contacts and origin may be known in these instances. CEP 4.3 does not contain any references to a requirement to disclose provenance of items to be disposed of. The practice of not disclosing the provenance of items has been in place for some years. A similar approach is taken by some comparable public sector agencies. DPS senior management acknowledges some advantages to this approach; but can also see disadvantages. DPS proposes to reconsider this matter, in light of the recommendations of the internal audit into the sale of the billiard tables.

(d) DPS maintains an asset register in accordance with the FMA Act and DPS Accounting Policy document 2.1 (Attachment W). Items are recorded in their appropriate asset class, wit