Helen Polley (Tasmania, Australian Labor Party, Shadow Assistant Minister to the Leader (Tasmania)) Share this | Link to this | Hansard source

I rise to speak on the Australian Institute of Health and Welfare Amendment Bill 2018. The Australian Institute of Health and Welfare is an invaluable resource for health policymakers in this country. For the last 30 years it has been Australia's principal source for health and welfare data. It produces accurate and trustworthy statistical information and reports that contribute a great deal to our understanding of our collective wellbeing. It's well respected across the health sector for its independence, professionalism and ethical integrity. It has a broad remit. In the past month alone it has produced reports on everything from eye injury and palliative care services to smoking rates and disability support.

In a sense, the Australian Institute of Health and Welfare is a diagnostic tool. It tells us precisely what's wrong with the nation's health so that we can put in place the policy and the prescriptions. Critically, it also tells us what we're doing right so we know where to double down. We think the Australian Institute of Health and Welfare does a terrific job. It provides a treasure-trove of accurate and reliable health data. Without the Australian Institute of Health and Welfare we'd often be flying blind, and the evidence based policy making in this country would be all the poorer for it. Labor values the Australian Institute of Health and Welfare and wants to see it thrive. We want to see it continue to be as important and relevant as it has been for the last 30 years.

Having said all of that, the Australian Institute of Health and Welfare exists in a radically different environment today than when it was established in 1987. It no longer enjoys the monopoly on the analysis of administrative health data. The Australian Bureau of Statistics has moved into this space as it has outgrown its traditional, narrow census-and-survey role. Policy agencies, like the Department of Health, are doing an unprecedented amount of their own in-house analysis. This all raises some pretty fundamental questions about the institute's role into the future, which is why the department commissioned a review of the institute in 2015.

The Nous Group review considered the institute's role, purpose, business model, product range, funding model, internal governance and organisation. The review made 35 recommendations, most of which do not require legislation. It recommended a change to the institute's funding structure, for better coordination between funding departments and better coordination with other information bodies. But its central finding was that the institute needs to undertake a major organisational transformation to secure its future as a leading information agency. That is primarily what this government bill aims to do. Labor is happy to support these changes.

The bill amends the Australian Institute of Health and Welfare Act 1987 to make changes to the governance and administration of the institute. The bill's major provision is to establish a skills based board, replacing the current board structure in which members are selected based on the groups that they represent. Currently, the board includes representatives from Commonwealth departments, COAG committees and stakeholder groups, a structure which the review concluded had encouraged a focus on operational rather than strategic issues. The new board will have up to 12 members, including a chair, deputy chair, CEO—renamed from director—up to three members nominated by the states, and six others. Each of these members will be required to have skills or experience in public administration, education, Indigenous health and welfare, data statistics, performance reporting, financing and corporate management, consumers' interests and/or law. Board members will be appointed for up to five years.

The bill also reassigns responsibility for appointing board members from the Governor-General to the Minister for Health, a change intended to streamline the appointments and bring the institute into line with other health portfolio agencies. The bill also removes the requirement for the Australian Institute of Health and Welfare to seek agreement from the Australian Bureau of Statistics to collect health and welfare related data, instead requiring it only to consult with the ABS as necessary. The bill also includes a number of other minor provisions—for example, setting out probity requirements for board members and procedures for board meetings.

These are not radical changes by any means, but Labor supports any measures that will help the institute reposition itself so that it remains relevant and even indispensable for the decades to come.

David Fawcett (SA, Liberal Party, Assistant Minister for Defence) Share this | Link to this | Hansard source

I rise to sum up on the Australian Institute of Health and Welfare Amendment Bill 2018. The bill amends the Australian Institute of Health and Welfare Act 1987. The bill will modernise governance arrangements at the Australian Institute of Health and Welfare by implementing a board which collectively possesses skills or experience or significant standing in a range of different fields. Prescriptive eligibility requirements will be removed, as will ex officio positions and other representative positions.

The changes will ensure that the board has the necessary expertise to focus on the key strategic issues and challenges faced by the institute in a market that is increasing in contestability for its services. The bill will recognise jurisdictional interests, with up to three members of the board to be nominated by state health ministers. This is critical to ensuring the ongoing production of high-quality and relevant data and statistics. The bill will ensure that vacancies are filled in a timely manner, with the Minister for Health, rather than the Governor-General, being responsible for appointments to the board. Furthermore, the measures will bring greater stability to the board through membership terms of up to five years.

The bill also makes other amendments designed to improve the operations of the institute, including changing the title of the director to chief executive officer, assigning the board responsibility for appointing the chief officer and removing the need for ministerial approval of contract limits. The bill modifies the institute's functions in relation to data collection activities; the institute is to consult with, rather than seek agreement from, the Australian Bureau of Statistics on the collection of health and welfare related information and statistics. The bill also includes transitional arrangements to ensure that the chair and chief executive officer can continue in their positions for the balance of their current terms, along with clarification on delegation powers.

Through this bill, the board will be better equipped to focus on the strategic issues and challenges faced by the institute. The bill will also reduce the administrative burden associated with the appointment of new members to the board, resulting in greater stability and timely filling of vacancies. I thank members of the Senate for their contribution to debate on this bill and I commend the bill to this Senate.

Question agreed to.

Bill read a second time.