Nigel Scullion (NT, Country Liberal Party, Minister for Indigenous Affairs) Share this | Link to this | Hansard source

I present two government responses to committee reports as listed at item 13 on today's Order of Business. In accordance with the usual practice, I seek leave to incorporate the documents in Hansard.

Leave granted.

The documents read as follows—

Australian Government response to the Senate Standing Committee on Foreign Affairs, Defence and Trade report: Capability of Defence's Physical Science and Engineering Workforce

November 2016

Recommendation 1

The committee recommends that the Department of Defence commit to maintaining its physical science and engineering workforce capabilities in key areas to allow it to be both a ' smart buyer ' and a technically proficient owner of materiel.

Government response

Agree

The Department of Defence is committed to maintaining its physical science and engineering (PSE) workforce capabilities and ensuring it meets contemporary and future needs in providing Defence capability. As identified by the committee, work in understanding and planning our workforce in a 'smart buyer' context is under way through implementation of the First Principles Review.

As outlined in the 2016 Defence White Paper, Defence will develop a ten year Strategic Workforce Plan in 2016, which will provide the broad direction, supporting policies and workforce planning and management practices that will enable Defence to secure a highly capable workforce. The Plan will include initiatives to ensure Defence can attract and retain physical science and engineering workforce capabilities in key areas to allow it to be both a 'smart buyer' and a technically proficient owner of materiel.

A skills census is being conducted to identify skills and capability gaps across all job families, which will inform Defence's strategy for ongoing professional development of its PSE workforce.

Recommendation 2

The committee recommends that the Department of Defence create a role, with appropriate subject matter expertise, analogous to the Director General of Technical Airworthiness, as a regulator to assess the competencies required for specific procurement and sustainment positions and the suitability of candidates to meet those competencies.

Government response

Agree

Defence has created a Chief Systems Engineer position (Senior Executive Service Band 1), within the Capability Acquisition and Sustainment Group, which has engineering and technical workforce responsibilities. The new Chief Systems Engineer, in conjunction with the Defence Technical Regulatory Authorities (e.g. Director General of Technical Airworthiness), will assess the required technical competencies of the Defence PSE workforce. Defence Technical Regulatory Authorities and the Chief Systems Engineer will work together to enable the Defence workforce to meet the prescribed technical competencies for specific roles within the new Capability Life Cycle.

Recommendation 3

That Defence take a strategic approach to the professional development of its PSE workforce as part of the Defence Industry Capability Plan.

Government response

Agree

Professional development of the Defence PSE workforce is a priority and is recognised in the Defence Strategic Workforce Plan to be completed in the second half of 2016. Defence is also developing Group and Job Family specific workforce plans that will specify learning and development needs for the PSE workforce. Using the Australian Qualifications Framework and other independent peak PSE bodies as a basis, Defence has partnered with industry and academia to develop a comprehensive professionalisation program to address priority needs in the PSE workforce and to ensure Defence and Industry best practice are aligned. An integral part of this approach is for the promotion of industry recognition through membership and certification by professional bodies.

A skills census is being conducted of current levels of PSE skills in Defence's PSE workforce. The skills census will assist in identifying skills and capability gaps and will inform Defence's strategy for ongoing professional development of its PSE workforce.

Defence, in collaboration with the Centre for Defence Industry Capability, is developing a Defence Industrial Capability Plan. The Plan, to be released by the second quarter of 2017, will profile the skills, technologies, infrastructure and capacity of Australian industry to meet the high priority capability needs of Defence. The plan will be dynamic to continually match the movement in industry capability and capacity with the priorities of Defence.

Consultation with industry in developing the Plan and the Defence skills assessment will help shape the future skilling initiatives for Defence and industry workforces.

Also, Defence project proposals to the Defence Investment Committee will give consideration to the critical skills and capability of Defence's workforce and the involvement of Australian industry.

Together these measures provide a holistic approach to professional development in what will be an increasingly integrated workforce of uniformed personnel, public servants and private industry.

Recommendation 4

That Defence undertake an assessment of workforce models to encourage more flexible and attractive arrangements for its critical PSE workforce.

Government response

Agree

Through the 2016 Defence White Paper, Defence will be investing $5 million over the next decade to the implementation of flexible, competitive offers for critical science, technology, engineering and mathematics and intelligence occupations, which will examine flexible employment models.

As part of the workforce plans described in response to Recommendation 3, a workforce analysis will be undertaken to identify the issues that may limit Defence's ability to secure the PSE workforce required in the future. Where appropriate, the workforce plans will identify attraction and retention initiatives for the PSE workforce.

Recommendation 5

That the Government clarify that the Defence Science and Technology Group (DSTG) will not be integrated into the Capability Sustainment and Acquisition Group.

Government response

Noted

Recommendation 2.17 of the 2015 First Principles Review recommended that "the Defence Science and Technology Group become part of the Capability Acquisition and Sustainment Group". The government did not agree to this recommendation and directed that it be considered again and advice provided as part of the annual update to the government on the progress of implementation of the First Principles Review. The first annual update is being prepared by Defence.

Recommendation 6

That Defence ensure that the roles and responsibilities of DSTG are directed to its areas of competence, rather than to technical risk assessments.

Government response

Disagree

Technical risk assessments are an important component of capability development. The core of a technical risk assessment is the identification of the risk that novel technologies, which are required to realise the desired capability, cannot be developed in the time available. The realisation of this risk has been recognised as a major cause of schedule delays and cost increases, and underpinned the recommendations of the Kinnaird review of Defence Procurement in 2003 when the framework for technical risk assessment and certification was established.

The requirement for technical risk assessments was confirmed by the 2012 Senate Standing Committee Foreign Affairs, Defence and Trade Inquiry into Procurement Procedures for Defence Capital Projects. In their submission to this inquiry, the Department of Finance cited the Defence Science and Technology Group technical risk assessment as a major point of reference for their advice to government. Technical risk assessments also form part of the advice that Defence provides to government.

Assessment of this risk requires an understanding of the state of development of a technology, and of the difficulties in further maturing that technology. The technical risk assessment also considers the difficulties in integrating systems and sub-systems to deliver capability, and identifies measures that can assist in the treatment of those risks. Technical risk assessments are aligned and well-matched to the competency of staff within the Defence Science and Technology Group, who have deep experience in developing novel technologies. The methodology that Defence Science and Technology Group uses in undertaking technical risk assessments has been favourably reviewed by both the United States Department of Defense and the United Kingdom Ministry of Defence.

Analysis of the 2014—2015 Defence Science and Technology Program showed that 32% of Defence Science and Technology Group effort is focussed on support to existing defence capabilities; 31% on support to new planned defence capability; 24% for forward looking research, including client-sponsored and strategic research; and 13% is for support to ad-hoc requests to support current ADF operations, national security (non-military) and other advice to government. In contrast, analysis of the effort used to develop technical risk assessments in a twelve-month period showed that this was less than 1.5% of the effort of Defence Science and Technology Group personnel who directly contribute to the science and technology programs.

Recommendation 7

That Defence, in establishing the Defence Innovation Hub and Next Generation Technology Fund, review the obstacles to public research agencies, academia and industry personnel participating in research and development initiatives.

Government response

Agree-in-Principle

The key obstacles for participation of the academic and industry sector in the Defence innovation initiatives have been well explored during development of the 2016 Defence White Paper and the Defence Industry Policy Statement, which underpin the establishment of the Defence Innovation Hub and Next Generation Technology Fund.

Defence recognises the need for more strategic engagement with the national innovation system and this is a clearly stated goal of both the National Innovation and Science Agenda and the Defence Industry Policy Statement. Defence has developed innovation engagement mechanisms that will implement the Defence Industry Policy Statement. These mechanisms have been progressively announced and implemented since February 2016 with three key examples being:

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Australian Government response to the Foreign Affairs, Defence and Trade References Committee report: Delivery and effectiveness of Australia's bilateral aid program in Papua New Guinea

November 2016

The Australian Government welcomes the Committee's report1 and thanks the Committee members for their contribution.

Papua New Guinea (PNG) remains a high priority for the Australian Government. Australia's aid program in PNG is Australia's largest single aid investment globally. The Australian Government places a high priority on working in partnership with PNG in the planning and delivery of aid. In March 2016, PNG and Australia signed the PNG-Australia Aid Partnership Arrangement 2016-20172 (Aid Partnership) which reflects agreed priorities for the delivery of effective and efficient aid. The Aid Partnership recognises that reducing poverty and pursuing sustainable economic growth in PNG is in both countries' national interests.

The Australian aid program is implemented in accordance with the Aid Partnership. This sets out mutually agreed priorities and commitments for PNG and Australia to work towards improved development outcomes for all Papua New Guineans. The Aid Partnership aligns with PNG's strategy document, Vision 20503, and will be revisited ahead of the 25th PNG-Australia Ministerial Forum in 2017 to ensure that mutually agreed priority areas continue to be the focus of Australia's support, and align with PNG's development priorities. Specific commitments are also outlined by the Joint Understanding between Australia and Papua New Guinea on further bilateral cooperation on health, education and law and order (2013)4.

The 2014 PNG Aid Assessment, A new direction for Australian aid in PNG: refocusing Australian aid to help unlock PNG's economic potential5 (Aid Assessment), considered ways in which Australia's aid program could more closely align with both governments' priorities and better assess mutual performance. This includes options to better address key constraints to economic growth and equitable development in PNG. The recommendations of the Aid Assessment were agreed by the Australian and PNG Governments in 2014 and represent a strategic shift in Australia's approach to aid in PNG. Consistent with the directions set out in Australian aid: promoting prosperity, reducing poverty, enhancing stability6 (Australia's Aid Policy), the outcomes of the Aid Assessment are guiding where and how Australian aid is spent in PNG, in alignment with Vision 2050.

The Australian Government welcomes the Committee's recommendations and notes issues raised through many of the recommendations were addressed in the Department of Foreign Affairs and Trade's (DFAT) submission7 and in the appearance before the Committee by the Department's senior officials in November 2015. For further information on the PNG aid program, agreed objectives and performance benchmarks, the Aid Program Performance Report8 is accessible on the DFAT website.

Committee Recommendations

Recommendation 1

3.78 The committee recommends that the Australian Government reverse

funding cuts made to the Papua New Guinea aid budget as part of a broader

commitment to progressively increase Australia ' s official development assistance

to 0.5 per cent of gross national income (GNI) by 2024-25.

The Australian Government notes this recommendation. Australia will provide an estimated total of $3.828 billion in official development assistance (ODA) in 2016-17 but will not commit to a prescriptive, time-bound aid target as a percentage of GNI until the domestic economy is back on sustainable footing and Australia is fiscally strong enough to support this aspiration. The Australian Government remains committed to working with the PNG Government to ensure that appropriate funding flows to the most effective programs and will continue to focus on priorities outlined in Australia's Aid Policyand theAid Partnership.

Total ODA to the Pacific including PNG has not been reduced despite reductions elsewhere in the ODA program. This reflects the Australian Government's continuing commitment to the Pacific region and to development in PNG. ODA to PNG in 2015-16 was a budget estimate outcome of $549.8 million and in 2016-17 is a budget estimate of $558.5 million.

Recommendation 2

3.79 The committee recommends that the Australian Government reassess the

priorities of the aid program in the context of the PNG Government ' s recent

budgetary cuts to education, health and infrastructure.

The Australian Government notes this recommendation. Australia and PNG regularly review the aid program through consultations at ministerial and official levels. Most recently, Australia and PNG jointly agreed the aid program priorities in the Aid Partnership, signed on 3 March 2016. The priorities identified through the Aid Partnership are health, education, law and justice, transport and governance.

Recommendation 3

3.83 The committee recommends that the objectives of the Australian aid

program to Papua New Guinea explicitly include inclusive and equitable

outcomes in development.

The Australian Government notes this recommendation. The Aid Partnership establishes "sustained and inclusive economic growth" and "reducing poverty" as overarching agreed priorities for development cooperation. The Aid Partnership, together with Australia's Aid Investment Plan Papua New Guinea 2015-16 to 2017-189, are among the strategic frameworks for the delivery of Australia's aid to PNG. Through these frameworks, and in line with the recommendations of the Aid Assessment and the objectives of the Economic Cooperation Treaty, Australia's aid objectives are to promote effective governance, economic growth and human development. A focus on diversifying the economic base provides opportunities for broad participation in the economy. Through each of these three interlinked objectives the Australian Government seeks to ensure assistance supports sustainable economic growth and equitable development outcomes.

Recommendation 4

3.84 The committee recommends that the key policy documents of the

Australian aid program to Papua New Guinea articulate how development

objectives align with the Sustainable Development Goals.

The Australian Government notes this recommendation. As with the Millennium Development Goals, Australia has been closely involved in the development of the Sustainable Development Goals (SDGs). DFAT is actively examining its policies, programs and reporting systems to determine what changes to make to better align with, and capitalise on, opportunities emerging from the 2030 Agenda for Sustainable Development (which include the SDGs and the Addis Ababa Action Agenda on Financing for Development).

Recommendation 5

3.85 The committee recommends that the Australian aid program to Papua

New Guinea include increased support for non-government organisations, civil

society and churches delivering assistance to rural and remote communities.

The Australian Government notes this recommendation. Australia will continue to work with non-governmental organisations (NGOs), civil society and churches to deliver assistance to rural and remote communities. The choice of partner for any particular activity will reflect the area of identified priority and a judgement as to which partner can best deliver the service required.

Recommendation 6

3.88 The committee recommends that the Australian Government conduct an

assessment of the impact of the closure of the Manus Island Regional Processing

Centre on development activities.

The Australian Government notes this recommendation. The Australian aid program is regularly assessed in conjunction with the PNG Government to ensure it is delivering results and is appropriately targeted. Any future development activities in Manus Province will be delivered in accordance with the PNG Government's development priorities as articulated in the Aid Partnership dialogue and the PNG Aid Investment Plan.

Recommendation 7

3.90 The committee recommends that the Australian Government examine an

expanded program to link institutions in Australia and Papua New Guinea for

the purpose of capacity building.

The Australian Government agrees with this recommendation. Australia continues to increase linkages between Australian and Papua New Guinean institutions to build capacity through a range of programs, including the Pacific Leadership and Governance Precinct. The Precinct commits approximately $91.6 million over five years to help meet PNG's priority of developing a new generation of ethical public servants by delivering short- and long-term executive level courses. Through Australian and PNG public service inter-agency twinning arrangements, the Australian Government is maintaining linkages between government entities. For example, there is ongoing cooperation between: the Australian Electoral Commission and the PNG Electoral Commission; the Australia Bureau of Statistics and the PNG National Statistics Office; the Australian Public Service Commission and the PNG Institute of Public Administration; the Australian Tax Office and the PNG Internal Revenue Office; and the National Gallery of Australia, the Australian War Memorial and the National Museum of Australia and the PNG National Museum and Art Gallery. Building institutional partnerships to increase capacity development is a priority across the program, and the Australian Government will continue to identify further opportunities to do so.

Recommendation 8

3.92 The committee recommends the Australian Government assess how cross-border

initiatives with Papua New Guinea and Indonesia could contribute to the

objectives of Australia ' s aid program.

The Australian Government notes this recommendation. The priorities of Australia's aid programs in Indonesia and PNG are directed according to Australia's cooperative partnerships with each country. Where Indonesia and PNG agree on cross-border initiatives that align with Australia's shared development priorities, Australia is willing to assess and discuss how the aid program could contribute to those initiatives.

Recommendation 9

4.74 The committee recommends that the Australian Government ' s

Governance Facility include a social accountability program to support local

communities in Papua New Guinea demand better services.

The Australian Government agrees with this recommendation, noting action is already underway through the recently established PNG Governance Facility (PGF). The PGF's design will support communities, civil society and church groups to achieve development outcomes and improved transparency and accountability of service delivery in select geographical regions. Australia and PNG have agreed that support delivered through the PGF will include a focus on social accountability programs.

Recommendation 10

4.79 The committee recommends that the Australian Government increase:

funding for the development of new treatments for tuberculosis suitable for development countries.

The Australian Government agrees addressing tuberculosis (TB) in PNG should be a priority for the aid program. Australia continues to cooperate with the PNG Government to ensure all committed funds are delivered in support of joint work to address TB. Australia is also encouraging others to become more involved, including the World Health Organization (WHO) and the World Bank. Australia continues to encourage the PNG Government to prioritise and coordinate full and adequate funding for the TB response through both appropriate use of its own resources, and seeking additional sources of support.

The Australian Government recognises the need for new products to support TB response efforts, in particular, combatting the development of drug resistant TB (DR-TB) strains and subsequent circulation of these strains in the community. The National Health and Medical Research Centre (NHMRC) supports a wide spectrum of TB response efforts—from basic science, clinical medicine, health services and public health research. NHMRC funded over $32.6m in TB research over 2006-15.

The Australian Government is providing $30 million over three years (2014-15 to 2016-17) to support Product Development Partnerships, which are innovative public-private partnerships co-investing in the development of new drugs and diagnostic tests suitable for low resource health settings. This includes $10 million to the TB Alliance to develop new TB treatment, and $10 million to the Foundation for Innovative New Diagnostics to develop diagnostic tools for diseases including TB.

Recommendation 11

4.81 The committee recommends the Australian Government prioritise a new

program to reduce childhood malnutrition and stunting in Papua New Guinea

and track childhood malnutrition and stunting as a human development

performance benchmark of the Australian aid program.

The Australian Government notes this recommendation. Priorities in the Australian aid program in PNG are agreed with the PNG Government. Australia supports cost-effective interventions to address nutrition across the aid program. These include investments in health, agriculture, education, and water, sanitation and hygiene. As part of these, Australian ODA funds programs with a specific focus on nutrition, such as support for breastfeeding, therapeutic feeding and nutrition policies and regulations. Future programming for nutrition will be determined in line with annual budgets and resourcing.

Recommendation 12

4.83 The committee recommends that the Australian Government increase the

support for the training of primary school educators in Papua New Guinea.

The Australian Government notes this recommendation. Through the Aid Partnership, Australian aid is aligned with PNG and Australian priorities to ensure the aid program focuses on 'enhancing human development', with improved education as a priority. Australia's aid program is providing infrastructure to support teachers in PNG—both at teacher training institutions and teacher houses in schools. In 2015-16, the Australian aid program supported 40 elementary teacher trainers to graduate with a Bachelor of Early Childhood from the Queensland University of Technology and 81 elementary and primary teachers to join PNG's basic education sector through Australia Awards PNG scholarships.

The PNG Government is continuing with education reform to address access issues, quality of teaching, and financing and management of institutions. The Australian Government is currently developing a five year sector investment plan which will guide Australia's future support to PNG to implement reforms in the education sector. Noting that Australian aid provides eight per cent of PNG's national education budget, this sector plan will look to leverage other donors to work in education, identify where Australian aid can make the most difference, and take into account sustainability of investments in education reform. Assessing lessons learned from the current investments in teacher education will factor into future sector planning.

Recommendation 13

4.85 The committee recommends that the Australian Government investigate

options to coordinate and support aid programs focused on cultural change in

gender inequality and gender based violence.

The Australian Government agrees with this recommendation. The Australian Government already delivers assistance through the regional Pacific Women Shaping Pacific Development program which focusses on increasing women's voice in decision-making, leadership and peace-building; women's economic empowerment; and ending violence against women and girls. As part of this program, the Australian Government works closely with PNG's Department for Community Development and Religion to coordinate assistance including through regular gender forums with development partners. The Australian Government is highly cognisant of the need, and benefit, of working with partners to lead an effectively coordinated response, both within and outside of gender equality programs in PNG. For example, the PNG-Australia Policing Partnership (PNG-APP) supports specialist police within Family and Sexual Violence Units, and the Royal Papua New Guinea Constabulary in the development of equal opportunity policies.

Recommendation 14

5.51 The committee recommends that the Australian Government, in supporting economic growth and public sector partnerships in Papua New Guinea through the aid program, ensures and demonstrates that:

The Australian Government agrees with this recommendation. The private sector is at the heart of the aid program and aims to enhance economic growth, create jobs and reduce poverty. By 2017, Australia will be directing 30 per cent of the aid program in PNG to fund initiatives focused on private sector and aid for trade initiatives. The Australian Government continues to engage with micro businesses and small-medium enterprises (SMEs). For example, Australia is working with microfinance institutions to provide financial literacy that has reached over 90,000 people, resulting in over K26 million (approximately $11 million) in loans to micro and small enterprises to grow their business. All of the Australian Government's private sector investments will involve consultation with relevant stakeholders to ensure relevance of programs through design and implementation.

Recommendation 15

5.53 The committee recommends that the Australian Government support:

the request of the Papua New Guinea Government to expand the Seasonal Workers Program to other relevant sectors;

an investigation of remittance costs between Papua New Guinea from Australia.

The Australian Government notes this recommendation. The Australian Government is committed to supporting PNG increase its participation in the Seasonal Worker Programme (SWP). DFAT established the Labour Mobility Assistance Program ($5.8 million over two years) in July 2015 to improve development outcomes for participating countries. On 18 June 2015, the Australian Government announced an expansion of the SWP to the broader agriculture industry and accommodation sector in specific locations on an ongoing basis. The expansion also removed the cap on the number of participating workers and involves a trial of the programme in the tourism industry in Northern Australia. The Australian Government will consider the demand for seasonal labour in other relevant sectors on an ongoing basis.

The Australian Government is already investigating remittance costs to PNG. This includes consideration of recommendations of a study on technological and innovative solutions to facilitate remittances from Australia to countries in our region, including PNG. The Australian Government has encouraged Australian banks operating in the Pacific to lower remittance costs. In the case