Senate debates

Tuesday, 14 November 2017

Committees

Joint Select Committee on Government Procurement, National Disability Insurance Scheme, Joint Standing Committee on Treaties; Government Response to Report

5:27 pm

Photo of Nigel ScullionNigel Scullion (NT, Country Liberal Party, Minister for Indigenous Affairs) Share this | | Hansard source

I present three government responses to committee reports as listed 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 Joint Select Committee on Government Procurement report:

Buying into our Future: Review of amendments to the Commonwealth Procurement Rules

November 2017

The Government is committed to building a stronger, more prosperous and resilient economy where Australian businesses can be competitive on a domestic and international level. With this in mind, the Government is focussed on reducing the cost of doing business with the Commonwealth by reducing red tape, improving the operating environment, and enhancing government engagement with business, including small business, to build capability.

The Government supports a Commonwealth Procurement Framework that requires non-discrimination, allowing all suppliers, regardless of origin, to compete on their merits. This opens up comparable access to overseas markets for Australian businesses. This is further demonstrated by the Government' s ongoing support of the Australian Industry Participation (AIP) National Framework, which encourages a national approach to maximise Australian industry participation in projects both domestically and internationally. Any recommendation to preference local suppliers must be carefully considered against Australia' s international trade obligations.

There are a number of Government entities advocating in the interests of Australian businesses, including the Australian Industry Participation Authority, the Australian Small Business and Family Enterprise Ombudsman and the Centre for Defence Industry Capability. These entities are focused on supporting industry growth, facilitating innovation and supporting Australian businesses in building their own capacity to succeed in their own right. These entities will continue to work with businesses to enable them to be well equipped to participate within the Government procurement market.

The Government is committed to progressing programs aimed at reducing the burden on Australian businesses. For example, the Government is working with Industry Capability Network (ICN) Limited to transition the existing ICN Gateway, a supplier matching service for major public and private projects, to a new platform and enhance its service to businesses. As part of its National Innovation and Science Agenda, the Government is transforming the way it buys digital and technology services, focusing on making it easier for small and medium businesses to compete for Government ICT projects.

The Government is committed to innovation and leveraging emerging technology through such initiatives as Defence' s Innovation Hub and Next Generation Technologies Fund, and the Government' s investment in Industry Growth Centres and the Entrepreneurs' Programme. These initiatives focus on researching emerging and future technologies, and supporting Australian industry to commercialise such technology, which can deliver new and innovating capability for both Government and business. This grows capability and can lead to opportunities for export.

In response to the Committee' s report, the Government supports public sector training, and notes the importance of Commonwealth entities ensuring that staff are appropriately trained, commensurate with the scale, scope and risks of the procurements they are undertaking. The Government also supports maintenance of appropriate records when undertaking a procurement, including reasons for the selection of preferred tenderers.

The Government is committed to a 12 month review of the new rules of the Commonwealth Procurement Rules, and will consider the feedback provided to Finance and the Committee when undertaking the review. In light of the committee' s recommendation to expand the use of Clause 10 of the Commonwealth Contracting Suite, a ' clause bank' of standard terms and conditions will be established for use by procuring entities in all Commonwealth contracts where appropriate.

The Government supports Australian business through the ongoing negotiation of trade agreements in Australia' s national interest, opening up new international markets to Australian businesses.

The Commonwealth Procurement Framework requires appropriate consideration of ethical practices, whole-of-life costs and efficient processing. The Government does not support the introduction of additional regulatory burden on businesses or the Commonwealth through the introduction of onerous reporting requirements.

The Government consistently exceeds its commitment to source at least 10 per cent of procurements by value from small and medium enterprises (SMEs), and recognises that SMEs are winning a large segment of Commonwealth contracts on their own merits.

Recommendations supported by Government:

Recommendations noted by Government:

Recommendations not supported by Government:

Australian Government response to the Joint Standing Committee on the National Disa bility Insurance Scheme report: Accommodation for people with disabilities and the National Disability Insurance Scheme

Joint Standing Committee on the National Disability Insurance Scheme

Report on accommodation for people with disabilities and the National Disability Insurance Scheme

The Australian Government welcomes this report and recognises the ongoing work of the Joint Standing Committee on the National Disability Insurance Scheme (NDIS) in reviewing the implementation and administration of the NDIS.

Since the Committee released this report in May 2016, there has been much progress in the implementation of NDIS supports relating to housing and specialist disability accommodation (SDA).

On 1 July 2016, the NDIS commenced including SDA supports in participant plans, in alignment with the policy set out in the SDA Pricing and Payments Framework (agreed by Disability Ministers in December 2015).

Additionally, NDIS Rules to support National Disability Insurance Agency (NDIA) decision-making in relation to SDA were registered on 14 March 2017. These rules were the culmination of a significant work program undertaken by the Commonwealth, state and territory governments and the NDIA to ensure that the SDA supports were targeted appropriately to ensure that high needs participants receive the supports they require.

Allied to this process, was the continued exploration of housing needs for NDIS participants. NDIS participants can be supported to achieve housing goals through the provision of home modifications, domestic assistance, assistive technology and assistance to navigate the rental market.

Finally, the provision of affordable and accessible housing for the general population (including people with disability) remains the responsibility of state and territory governments. The Commonwealth provides assistance through Commonwealth Rent Assistance and through an ongoing work program to consider how to facilitate affordable and accessible housing in the community.

In relation to the response to the Joint Standing Committee's report, the Government has agreed five recommendations and notes one recommendation.

Government response to the Joint Standing Committee on the National Disability Insurance Scheme

Australian Government response to the Joint Standing Committee on Treaties: Report 169

Future Submarine Program—France,

Classified Information Exchange—France

November 2017

Australian Government response to the Joint Standing Committee's report

Future Submarine Program—France Classified Information Exchange—France

The Government thanks the Committee for its consideration of the Framework Agreement between the Government of Australia and the Government of the French Republic concerning Cooperation on the Future Submarine Program and the Agreement between the Government of Australia and the Government of the French Republic relating to the Exchange and Reciprocal Protection of Classified Information and provides the following responses to the Committee's recommendations.

The Government would also like to clarify the comments made during the hearing on 14 March 2017 in response to the Committee Chair's question as to whether it was the Department of Defence's view that DCNS was required to comply with the terms of the Framework Agreement between the Government of Australia and the Government of the French Republic concerning Cooperation on the Future Submarine Program (the Framework Agreement). While DCNS is majority owned by the French Government, it is also partially owned by Thales and other entities. The Framework Agreement is between the Government of Australia and the Government of the French Republic, for the management of matters within the ability of the French Government to control. There are a range of commercial arrangements in place which govern the relationship between the Government of Australia and DCNS.

Recommendation 1

2.152 The Committee recommends that the Department of Defence ensures that the full lessons from the design, acquisition and sustainment of the Collins Class Submarine are learned, in particular, to ensure that the intellectual property is appropriately managed to maintain Australia's sovereign operation of the Future Submarine. The Committee requests that the Department of Defence provides a report back to the Committee during the 2018 Winter Sittings of the Parliament on the progress of obtaining the necessary intellectual property and its ongoing management, and in relation to the contractual and other arrangements that will secure maximal opportunities for Australian industry involvement.

Government response

The Government agrees with this recommendation.

The Government acknowledges that a lack of adequate intellectual property rights impaired the Commonwealth's ability to operate and sustain the Collins Class submarines as they entered service in accordance with Australia's requirements, resulting in delays, increased costs and restricted improvement and support of the Collins submarine capability.

The Future Submarine Program's approach to intellectual property has been predominantly driven by the lessons learnt from the Collins Submarine Program. From the outset of the Competitive Evaluation Process, a prime objective of the Future Submarine Program has been to establish a sovereign capability to operate and sustain the Future Submarine.

In the Framework Agreement with France and under the Design and Mobilisation Contract between the Commonwealth and DCNS, appropriate intellectual property rights to achieve this objective have been established.

The Department of Defence will provide a report to the Joint Standing Committee on Treaties during the 2018 Winter Sittings of the Parliament on the progress of obtaining the necessary intellectual property and its ongoing management.

Any report to Parliament will need to take into account commercial sensitivities with the transfer of technology to Australia with due regard given to the relevant commercial and public interest immunity considerations.

Recommendation 2

2.153 In reference to Article 13(2)(b), the Committee recommends the Government seeks to ensure that the further detailed agreements and arrangements have the effect of allowing Australian companies to bid for work in all phases of the Future Submarine Program on a preferred basis, all other things being equal.

Government response

The Government agrees in-principle with this recommendation

One of the Government's objectives is to ensure that Australian industry involvement is maximised to achieve the sovereign capacity to build, operate and sustain a regionally superior fleet of Future Submarines in Australia consistent with relevant capability, cost, and schedule considerations.

The Commonwealth retains the final decision on the selection of companies involved in the Future Submarine Program, having taken account of sovereignty objectives and capability, cost and schedule.

Recommendation 3

2.154 The Committee supports the Framework Agreement between the Government of Australia and the Government of the French Republic concerning Cooperation on the Future Submarine Program and recommends that binding treaty action be taken.

Government response

The Government agrees with this recommendation.

The Government accepts this recommendation and brought the Agreement into force on 5 May 2017 through an exchange of diplomatic notes with France providing notification that the domestic processes required for the treaty to enter into force had been completed.

Recommendation 4

3.55 The Committee recommends that the government bring forward, as a matter of urgency, its work program to connect State and Federal law enforcement and judicial information systems with the personnel security clearance systems in order to maximise the information available to the vetting agency to monitor changes in circumstances.

Government response

The Government notes this recommendation.

Developing better access to existing data holdings and developing effective information sharing mechanisms are key components of the Government's work to manage emerging threats to Australian Government information, assets and people.

Work is underway to improve the use and access to relevant information to improve vetting decision making. This work involves strengthening existing connectivity and developing additional avenues to receive information on a vetting subject's suitability to hold or maintain a security clearance. This will be developed in consultation with a broad range of Commonwealth, State and Territory agencies.

Recommendation 5

3.56 The Committee supports the Agreement between the Government of Australia and the Government of the French Republic relating to the Exchange and Reciprocal Protection of Classified Information and recommends that binding treaty action be taken.

Government response

The Government agrees with this recommendation.

The Government accepts this recommendation and brought the Agreement into force on 4 May 2017 through an exchange of diplomatic notes with France providing notification that the domestic processes required for the treaty to enter into force had been completed.

Government response to Additional Comments by Labor Members

The Government notes the additional comments by Labor Members and refers to its response to Recommendation 2 above.