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Report of Operations

AMSA, 14th Annual Report, 2003 - 2004

Enabling Legislation and Responsible Minister

The Australian Maritime Safety Authority (AMSA) is established under the Australian Maritime Safety Authority Act 1990 (No 78 of 1990) which came into effect on 22 October 1990. The main objects of the Act are to:

(a) promote maritime safety;
(b) protect the marine environment from pollution from ships and other environmental damage caused by shipping;
(c) provide a national search and rescue service; and
(d) promote the efficient provision of services by the Authority.

AMSA commenced operations on 1 January 1991 and has the following statutory functions as specified in section 6 of the Act, to:

(a) combat pollution in the marine environment;
(b) provide a search and rescue service;
(c) provide, on request, services to the maritime industry on a commercial basis;
(d) provide on request services of a maritime nature, on a commercial basis, to the Commonwealth, a State, a Territory or their authorities or agencies;
(e) co-operate with the Executive Director of Transport Safety Investigation in relation to investigations under the Transport Safety Investigation Act 2003 that relate to ships;
(f) perform such other functions as are conferred on the Authority by or under any other Act;
(g) provide consultancy and management services or to perform any other prescribed functions relating to any of the above matters; and
(h) perform functions incidental to any of the previously described functions.

During the period covered by this report, the responsible Minister under the Australian Maritime Safety Authority Act 1990 was the Hon John Anderson MP, Minister for Transport and Regional Services.

Organisational Structure

AMSA comprises four Divisions, Maritime Safety and Environmental Strategy Division , Maritime Operations, Emergency Response Division and Corporate, and the General Counsel bureau, as described on page 10 of this report.

AMSA’s services are mainly provided, on a cost recovery basis, from fee and levy revenue sources. It also receives Community Service Obligation (CSO) funding from the Australian Government specifically relating to search and rescue and boating safety education. The financial position in relation to revenue and expenditure as at 30 June 2004 is described on pages 12 to 15 of this report.

AMSA’s head office is situated in Canberra. Principal offices are located in Brisbane, Queensland; Sydney, New South Wales; Melbourne, Victoria; Adelaide, South Australia; and Fremantle, Western Australia. (A list of AMSA office addresses are included in the Appendices to this report.)

Review of Operations and Future Prospects

AMSA’s outcomes and outputs are described on page 16 of this report and the review of AMSA’s operations during 2003-2004 is discussed under each Output Group from page 17 to 88 of this report.

A summary table providing a financial snapshot and performance summary for the last four financial years including 2003-2004 appears at page 11 and detailed financial statements commence at page 127 of this report. Performance review data against the measures included in the Portfolio Budget Statements for 2003-2004 appear at the end of each output group.

Significant Events

There were no significant changes in AMSA’s state of affairs or principal activities during 2003-2004 and no events occurred relevant to section 15 of the Commonwealth Authorities and Companies Act 1997 during 2003-2004 or after the financial year’s end.

Judicial Decisions and Reviews by Outside Bodies

During 2003-2004, there were no judicial decisions or decisions of administrative tribunals that had, or may have, a significant impact on AMSA’s operations.

During 2003-2004, AMSA contributed reports to seven Coronial inquests into fatalities arising from incidents that led to search and rescue operations involving AMSA.

On 24 July 2003, the Coroner’s report was handed down from the inquest into the loss of eight persons in the crash of an aircraft into Spencer Gulf in South Australia in May 2001. The report found that on the balance of probabilities the occupants of the aircraft had not survived the crash. The Coroner concluded that, in these circumstances, it was unnecessary for him to assess the quality of the search and rescue operation, which had been coordinated overall by AMSA with the South Australian Police coordinating the surface search. However, he found that the search effort was timely and appropriately targeted and the evidence established that the operation was conducted with a high degree of professionalism and skill.

During 2003-2004, AMSA had an interest in the following Parliamentary inquiries:

In June 2004, the Joint Standing Committee on Foreign Affairs, Defence and Trade tabled its report on the Inquiry into Australia’s Maritime Strategy. The report considered certain regulatory issues raised by the Independent Review of Australian Shipping, including a proposal to amend the Shipping Registration Act 1981 to remove the prohibition on Australian entities registering ships outside Australia. The report recommended that the Government should respond as a matter or urgency to measures proposed by the Review.
In March 2004, the Joint Standing Committee on Treaties tabled its report (No. 59) from its inquiry into Australian implementation of certain treaties including the Protocol of 1997 to amend the International Convention for the Prevention of Pollution from Ships (MARPOL 1973/78) in relation to Annex VI regulating air pollution from ships. AMSA gave evidence to the Committee in relation to the obligations involved with the Protocol and its role in its implementation in Australian law. The Committee supported the Protocol and recommended that binding treaty action be taken by Australia.
In January 2004, the House of Representatives Standing Committee on Transport and Regional Services commenced an inquiry into maritime salvage in Australian waters in response to terms of reference put forward by the Minister for Transport and Regional Services. AMSA made a joint submission to the inquiry with the Department of Transport and Regional Services. On 21 June 2004, the Committee issued its report, Ship Salvage, Inquiry into Maritime Salvage in Australian Waters, which made a number of recommendations that would have a significant impact on the Government’s role and responsibilities in relation to emergency towage and salvage. Several recommendations were directed at AMSA’s functions and AMSA is consulting with the Department in developing a response to the report.
In December 2003, the Joint Standing Committee on Treaties tabled its report (No. 57) from its Inquiry into Australian implementation of amendments to the Convention for the Safety of Life at Sea, 1974 relating to maritime security and the Ship and Port Facility Security Code (ISPS). AMSA attended a hearing of the Committee in relation to AMSA’s proposed role in the implementation of the ISPS Code. The report did not include any recommendations relevant to AMSA.
On 19 September 2002, the Senate Standing Committee on Transport, Rural and Regional Affairs proceeded with an inquiry into the role of AMSA and the Tasmania Police in the search for three crew aboard the fishing vessel Margaret J, which sank off the northern coast of Tasmania in April 2001. The inquiry was established by an Opposition motion in the Senate on 25 June 2002, but was subsequently deferred by the Committee until the Coronial inquest into the loss of the three crew had reported. This action was taken after the Coroner raised the potential prejudice to his inquest from the Senate inquiry preceding the inquest. The Coroner’s report was handed down in August 2002.

The Committee held a hearing in Canberra on 19 September 2002, when AMSA gave evidence, and on 27 November 2002 in Launceston, when the Tasmania Police and another civilian witness gave evidence. The Committee’s report was presented to the Senate on 12 August 2004. It reviewed AMSA’s role in the search operation and the Coroner’s report recommendations. The Committee came to similar conclusions as the Coroner that there were deficiencies in the working relations between the agencies, and also a lack of understanding of hand-over procedures and inaccurate record keeping. However, the Committee could not determine that these had affected the overall outcome of the search. The report made a number of findings, including the need to improve relations between agencies, ensuring accurate recording of information during incidents, and formalising the transfer of responsibility for incidents between agencies. These reflected the Coroner’s report recommendations that already had been fully actioned by AMSA.

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During 2003-2004, the following reports were released by the Australian National Audit Office (ANAO) that made recommendations relevant to AMSA’s management and business systems or, in some cases, examined aspects of AMSA’s business operations during the ANAO audit:

In June 2004, the ANAO released the report on the audit of the Administration of Freedom of Information Requests (No. 57 of 2003-2004). The objectives were to assess the appropriateness of agencies’ policies and processes for dealing with requests for information in accordance with the Freedom of Information Act 1983 and agencies’ compliance with the provisions of the Act, in relation to selected requests for information. AMSA was not involved in the audit but is considering its recommendations in relation to the administration of FOI applications.
In June 2004, the ANAO released the report of the audit of the Management of Protective Security (No. 55 of 2003-2004). The objective was to assess whether protective security functions in selected organisations were being effectively managed. In considering effectiveness, the audit assessed whether protective security arrangements were designed within the context of the business framework and the related security risks identified by the organisation and provided an appropriate level of support for the organisation’s operations and the delivery of its services. AMSA was not involved in the audit but is considering its recommendations in relation to the administration of protective security.
In May 2004, the ANAO released the report of the audit on the Use and Management of Human Resources Information Services (HRIS) in the Australian Public Sector (No. 49 of 2003-2004). The objective was to examine the effectiveness of Australian Public Service organisations in the use and management of the HRIS to satisfy mandatory reporting requirements, as well as provide meaningful information to management. The audit also considered the use of employee self service facilities offered by the HRIS, which has the capacity to provide staff with access to their personal information, reduce manual processing and streamline processing. AMSA was not involved in the audit but is considering its recommendations, particularly in relation to the development of the new AMSA financial and human resources system.
In April 2004, the ANAO released a better practice guide, Better Practice Guide in Annual Performance Reporting, providing examples of public sector good practice in presentation of performance information. AMSA was cited in the guide as an example of better practice in two areas: AMSA’s outcomes and outputs reporting framework showed succinctly the relationships between AMSA’s Divisions, its outputs and output groups, its intermediate or agency level outcomes and their contribution to the portfolio outcome; and AMSA’s review of its risk based ship inspection system provided an example of making best use of evaluation and review results to improve measurement and reporting of performance. The overall approach recommended in the Guide will be an input to the planned review later in 2004 of AMSA’s outcome and outputs structure and performance information.
In February 2004, the ANAO released the report on the audit of Quality Internet Services for Government Clients – Monitoring and Evaluation by Government Agencies (No. 30 of 2003-2004). The objective was to form an opinion on the adequacy of selected agencies’ approaches to monitoring and evaluation of government programs and services delivered on the Internet and to identify better practices and opportunities for improvement. AMSA was not involved in the audit but is considering its recommendations in relation to the delivery of its services through the Internet.
In February 2004, the ANAO released the report on the audit of Intellectual Property Policies and Practices in Commonwealth Agencies (No. 25 of 2003-2004). The audit examined agency approaches to the management of intellectual property under its control, and identified themes common to the management of all types of intellectual property. The objective was to examine if Commonwealth agencies have systems in place to efficiently, effectively and ethically manage their intellectual property assets and to identify areas for better practice in intellectual property management by those agencies. AMSA was not involved in the audit but is considering its recommendations in relation to the management of intellectual property rights.
In December 2003, the ANAO released the report of the audit of Property Management (No. 19 of 2003-2004). The objective was to assess whether the property management function, including the management of leases, was being performed efficiently and was providing an effective level of support for the delivery of the organisation’s services (outputs). The audit evaluated property management policies and practices across the dimensions of planning and control, business processes and practices, and information and performance management. Within each of these areas, a series of desirable processes and controls (described as the evaluation criteria) were developed to assist in the assessment of each organisation’s performance. AMSA was not involved in the audit but is considering its recommendations in relation to the administration of its property.
In November 2003, the ANAO released the report of the results of its Survey of Fraud Control Arrangements in Australian Public Sector Agencies (No. 14 of 2003-2004) This survey was conducted to identify improvements made by agencies since a similar survey in 1999, and in response to the revised Commonwealth Fraud Control Guidelines released in May 2002. Its objective was to assess the key aspects of fraud control arrangements in place across the Australian Public Sector against the Commonwealth Fraud Control Guidelines 2002. AMSA was not involved in the audit but is considering its recommendations in relation to its fraud control arrangements.
In November 2003, the ANAO released its report of the audit of Annual Performance Reporting (No 11 2003-2004). The audit reviewed the 2001-2002 annual reports of four Commonwealth departments and one agency with the objective of determining whether they had established a sound annual reporting performance information framework, developed arrangements to ensure performance information is accurate and coherent, and appropriately analysed performance information in their annual reports. AMSA was not involved in the audit but considered its recommendations in relation its performance reporting.
In September 2003, the ANAO released its report of the audit of Recordkeeping in Large Commonwealth Organisations (No. 7 of 2003-2004). The objectives were to assess whether recordkeeping policies, systems and procedures were in accordance with relevant Government policies, legislation, accepted standards and recordkeeping principles, and applicable organisational controls including the identification of better practices and any recommended improvements. AMSA was not involved in the audit but considered its recommendations in relations to its performance reporting.
In August 2003, the ANAO released its report of the audit of Management of Risk and Insurance (No. 3 of 2003-2004). The objectives were to evaluate the administrative systems and frameworks in five Commonwealth organisations used in the management of risk and insurance. Specifically, the audit evaluated the adequacy and effectiveness of: the development and application of risk management and insurance frameworks and plans within organisations; organisations’ records for the determination of risk treatments, including insurance cover; and procedures, and their application, for actively managing risk exposures and insurance experience. AMSA was one of the agencies involved in this audit but the report did not identify any major issues with AMSA’s administration of insurance and risk management. AMSA was ranked among the top agencies under each of the performance criteria examined during the audit.
In July 2003, the ANAO released its better practice guide, Better Practice in Public Sector Governance, which updated two previous ANAO guides published in 1997 and 1999. It provided guidance relevant to all public sector organisations covered by the Financial Management and Accountability Act 1997 or the Commonwealth Authorities and Companies Act 1997. AMSA undertook a review of its performance against the standards in the Guide.

Effects of Ministerial Directions

There were no Ministerial Directions issued during 2003-2004.

Directors and Audit Committee

The particulars about AMSA Board members are provided on pages 8 and 9 of this report and their attendance at meetings of the Board and the Audit Committee is in the following table.

Member	Board Meeting		Audit committee
Member	eligible	attended	eligible	attended
Mr Edward Anson AM (Appointed Chairman on 27 October 2003)	5	5	-	-
Dr Ken Moss (Retired from Board on 26 October 2003)	4	4	-	-
Captain John Paine (Appointed as Deputy chair on 15 April 2004)	9	9	-	-
Mrs Sarina Bratton (Retired from Board on 7 April 2004)	6	6	3	3
Mr Tony Hyams	9	9	4	4
Mrs Virginia Chadwick (Reappointed to Board on 15 April 2004)	9	9	-	-
Mr Barry Vellnagel (Deceased 31 May 2004)	8	7	4	4
Mr Clive Davidson (Reappointed as CEO on 4 May 2004)	9	9	-	-

Statement of Governance

The Board, Chief Executive Officer and senior management discharge their duties within the framework of the Australian Maritime Safety Authority Act 1990 and the Commonwealth Authorities and Companies Act 1997.

Role of the Board and AMSA management

The Board has three key roles:

Provides strategic oversight of AMSA on behalf of the responsible Minister by determining the overall manner in which the various functions entrusted to AMSA should be performed. In doing so, the Board expresses its understanding of the expectations of the Minister within the context of technological change and the external environment, directs high-level risk management in AMSA, and monitors the performance of the Chief Executive Officer and senior management.
Takes responsibility for AMSA’s resources by monitoring the major components in AMSA’s profit and loss account and balance sheet and take responsibility for approving expenditure on major capital works.
Executes good governance by ensuring compliance with the Commonwealth Authorities and Companies Act 1997 and the Australian Maritime Safety Authority Act 1990, while promoting careful, diligent and ethical conduct throughout AMSA.

The Chief Executive Officer is appointed by the Minister after receiving the recommendation of the Board and, under the Board’s strategic guidance, manages the Authority. It is the role of management to manage resources to produce outcomes that achieve the strategic objectives established by the Board; and to provide prompt and regular advice to the Board on any matter relevant to the discharge of its duties.

Senior managers and staff are required to maintain the highest standards of integrity, accountability and responsibility in the exercise of their duties and their dealings with stakeholders.

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Board structure

As at 30 June 2004, AMSA had five directors, of which four are independent non-executive directors appointed by the Minister. The Chief Executive Officer is a director ex officio.

Mr Edward G Anson AM	Chairman since 27 October 2003 until 26 October 2006.
Captain John Paine	Member since 1 April 2002 and Deputy Chair from 15 April 2004 until 31 March 2005.
Mr Tony Hyams	Member from 1 September 1998 to 31 August 2000, from 9 October 2000 until 8 October 2002, and from 9 October 2002 until 8 October 2004.
The Hon. Virginia Chadwick	Member since 8 April 2002 until 7 April 2004 and from 15 April 2004 until 14 April 2007.
Mr Clive Davidson	Member ex officio since 4 May 1998 until 3 May 2007.
During 2003-2004, three directors left the AMSA Board as follows:
Dr Kenneth Moss	Member from 8 April 1999 and Chairman from 1 July 2001 until 26 October 2003 when he retired from the Board.
Mrs Sarina Bratton	Member from 1 September 1996 to 31 August 2000 and from 9 October 2000; Deputy Chair from 8 April 2002 until 7 April 2004 when her term of appointment expired.
The late Barry Vellnagel	Member from 1 April 2002 until his death on 31 May 2004.

The Board normally holds eight formal meetings each year. Additional meetings are held if required. One such meeting was held during 2003-2004.

Committees

During 2003-2004, the Board had one formal committee, the Board Audit Committee, which assists the Board in fulfilling its audit, accounting and reporting obligations. The Committee is independent from management and comprises at least three members of the Board, other than the Chief Executive Officer. The Chair of the Committee and the members are appointed by the Board and any other Board members may attend its meetings as an observer. The Board does not delegate major decisions to the Audit Committee. Membership of the Audit Committee during 2003-2004 was as follows:

Mrs Bratton	Chair until 7 April 2004.
Mr Hyams	Member until 7 April 2004 and Chair from 8 April 2004.
Mr Vellnagel	Member until his death on 31 May 2004.
Mrs Chadwick	Member from 15 June 2004.
Captain Paine	Member from 15 June 2004.

The Audit Committee normally holds four formal meetings each year.

On 15 June 2004, the Board agreed to establish another formal committee, the Remuneration Committee, to consider senior executive remuneration matters and issues arising from the Remuneration Tribunal that require Board deliberation. The Committee is independent from management and comprises at least three members of the Board, other than the Chief Executive Officer.

The Chair of the Committee and the members are appointed by the Board and may have access to any staff member and may seek external advice in order to carry out its responsibilities. The Committee may invite any staff member (including the Chief Executive Officer) or other individual (including external adviser/s) to attend Committee meetings, as it considers appropriate. The Chair reports the findings and recommendations of the Committee to the Board but the Committee has no decision-making authority. The Committee is to meet as required and its inaugural membership is as follows:

Captain Paine	Chair from 15 June 2004.
Mr Hyams	Member from 15 June 2004.
Mrs Chadwick	Member from 15 June 2004.

In addition to the Audit and Remuneration Committees, the Board establishes ad hoc committees as required to handle issues as they arise.

Governance practices

The Board bases its approach to governance on the Australian National Audit Office Better Practice in Public Sector Governance of July 2003. This includes the following measures:

The role of the Board is documented in a Board Charter;
Directors engage independent professional legal advice when appropriate;
Directors are provided with information and initial training upon their appointment to the Board and subsequently in accordance with their individual needs;
A regular agenda item for Board meetings relates to conflicts of interest; all directors have tabled standing notices under the Commonwealth Authorities and Companies Act 1997;
A written Code of Conduct has been established for the organisation and approved by directors;
The Corporate Plan, Budget and Annual Report are discussed and approved by directors;
An advisory committee of stakeholders meets three times a year and one of those meetings is a joint meeting with the directors;
During 2003-2004, directors received regular updates on corporate governance issues and monitored AMSA’s performance in this area against contemporary standards, such as the Australian Stock Exchange’s Corporate Governance Council Principles of Good Corporate Governance and Best Practice Recommendations issued in March 2003 and the latest ANAO Better Practice Guide in Public Sector Governance issued in July 2003. The Board also will be considering the Government response to recommendations of the Prime Minister’s Review of Corporate Governance of Commonwealth Statutory Authorities and Office Holders, particularly the application of its governance principles to AMSA;
Directors regularly report the outcomes of their deliberations to the Minister;
Directors maintain a regular program of presentations by AMSA management and others on topical issues relevant to the work of AMSA; hold meetings with stakeholders, including attendance at relevant industry conferences and seminars; and visits locations where AMSA does business.

Indemnities and Insurance Premiums for Officers

AMSA provides indemnities and insurance cover to Board members and other officers in line with the Commonwealth Authorities and Companies Act 1997.

Statutory Requirements

This annual report provides reports required under the following statutory provisions:

Freedom of Information Act 1982 (section 8);
Environment Protection and Biodiversity Conservation Act 1999
(section 516A);
Occupational Health and Safety (Commonwealth Employment)
Act 1991 (section 74).

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last updated: May 2005