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Corporate governance |
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The Director
is accountable for the overall legal and financial performance
of the Scheme and ensures that the objectives of the Act are
met.
The Secretary of the Department of Health and Ageing (DoHA)
provides
staff to the Director, NICNAS to carry out the functions of the
Act under
Section 91(3) of the Act. The employment framework for NICNAS
staff
is the Public Service Act 1999. The DoHA Certified Agreement
2004-07
and the Department's governance policies and practices cover
staff.
These include the establishment and maintenance of appropriate
ethical
standards under the Australian Public Service (APS) Values and
Code of
Conduct, compliance with Australian Government Freedom of
Information
(FOI), Privacy and Occupational Health and Safety legislation,
the Australian
Government Disability Strategy and workplace diversity policy.
The
operations of the Scheme are governed by the Industrial
Chemicals
(Notification and Assessment ) Act 1989 (the Act) and a number
of
corporate documents that facilitate transparent, sustainable and
open
delivery of the regulation of industrial chemicals. NICNAS's
cost recovery
arrangements and performance targets are detailed in the DoHA
PBS.
The NICNAS PBS are supported by the NICNAS Strategic Corporate
Plan
2002-05, the NICNAS Operational Plan 2004-05 and the NICNAS
Service
Charter 2002-05.
The Act
stipulates mandatory performance standards such as assessment
timeframes, public reporting of prescribed information and
annual reporting
requirements. Performance reporting against the Act, corporate
plan and
operational plan is undertaken quarterly and is detailed in the
Operational
Performance section of this report, as is the outcome of the
annual
customer survey of key stakeholders. Compliance with mandatory
reporting
requirements under the Act is detailed at Appendix 01.
The financial
framework for the governance of NICNAS is established in the
Financial Management and Accountability Act 1997 (the FMA Act).
Integrity
in financial reporting is through internal audit arrangements
via a Service
Level Agreement (SLA) with the DoHA. These are reported in the
DoHA
Annual Report 2004-05 where NICNAS's performance against
governance
policies and practices can also be found.
NICNAS
internal policies and practices also cover the physical security
and
protection of commercial-in-confidence information it receives
from industry
in support of chemical notifications.
In 2004-05, NICNAS received two formal
complaints on its operations as
compared to two in 2003-04, one in 2002-03, seven in 2001-02 and
two
in 2000-01. One complaint related to the publication of a report
on the
NICNAS website that contained reference to confidential business
information. The other related to the provision of an assessment
report
containing third party data to the notifier. NICNAS engaged the
services
of an independent consultant, Tress Cox Lawyers, to investigate
the first
complaint and a breach was found to have occurred. As a result
we have
made significant changes and improvements to NICNAS's internal
procedures that were recommended. The second complaint was found
to be baseless. However as part of the investigation of the
matter, a
number of procedural improvements were identified and
implemented.
Both complaints were resolved to the satisfaction of the
complainants.
Three non-statutory bodies provide advice to
the Director on the NICNAS
budgetary process, community information needs and the operation
of
the Scheme. These are: the NICNAS Industry Government
Consultative
Committee (IGCC), the NICNAS Community Engagement Forum (CEF)
and the NICNAS/States and Territories Memorandum of
Understanding
(MOU) Group.
These bodies remained critical to NICNAS's
success in continuing to
build effective partnerships to deliver whole-of-government
achievement.
By having well informed and actively engaged stakeholders,
NICNAS
was greatly assisted in meeting all its key targets in 2004-05.
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Industry Government Consultative Committee |
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Industry Government
Consultative Committee
Seated (L to R):
Mr Nick Munafo (PACIA), Ms Sylvia Kidziak AM
(ACCI), Mr Tom Fisher (ASCC)
Standing (L to R): Mr Nick Miller (Secretariat, NICNAS) Mr
Mark Hyman (DEH), Mr Geoff MacAlpine (ACCORD) Dr Margaret
Hartley (Chair,
NICNAS), Mr Wil Antioch (DITR), Ms Bronwyn Capanna (ACCORD),
Mr Michael Hambrook (APMF), Ms Margaret Donnan (PACIA)
Absent: Mr Shane Baker (DITR), Mr Terry Slater (TGA)
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Appointed by the Minister, the IGCC oversees the efficient and
effective
utilisation of NICNAS resources and the Scheme's operational
performance.
IGCC membership, terms of reference and meeting details for
2004-05 are
at Appendix 02.
The IGCC met two times during 2004-05 with the focus of
activities on the
implementation of key reform initiatives, detailed in the Reform
Initiatives
section of this report. The Committee also determined the level
of NICNAS
fees and charges for 2005-06 and endorsed the NICNAS Operational
Plan
2005-06 and NICNAS 2005-06 Budget.
Other key outcomes from the IGCC meetings in 2004-05 were:
• the establishment of a NICNAS-Industry Working Group to
consider and
report to the Director, NICNAS on the re-engineering of certain New
Chemicals administrative and other processes to address the trend
noted by NICNAS of a reduced application quality by industry
• a report on the substantial progress being made in the review
of the
Existing Chemicals Program, and
• the sustained high-level of performance as noted in quarterly
performance reports for NICNAS, where overall performance targets
were reported to have been met or exceeded.
IGCC members evaluated the efficiency and performance of the IGCC
process and feedback indicated that papers were well prepared and
received on time, and that the meetings were well focused, with
plenty
of time for discussion and listening, leading to workable
solutions.
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Regulatory framework linkages and
cooperative
arrangements |
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Community Engagement
Forum (L to R):
Dr Bro Sheffield-
Brotherton (environmental
interests), Ms Pamela Grassick and Ms Renata Musolino
(worker health and safety interests), Assoc Prof Christopher
Winder (public health interests), Dr Wafa El-Adhami (Acting
Director,
NICNAS), Mr Griffin D'Costa
(Secretariat, NICNAS),
Ms Liz Hanna (public health interests)
Absent: Ms Jane Bremmer
(environmental interests),
Dr Margaret Hartley (Chair - Director, NICNAS
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The establishment of the Community Engagement Forum (CEF) arose
from NICNAS's low regulatory concern chemicals (LRCC) reform
initiative.
The LRCC Task Force recognised the advantages to NICNAS of
maintaining
an ongoing dialogue with the public through the establishment of
a formal
consultative mechanism and recommended the establishment of a
community-based forum.
The Forum was established to assist the NICNAS office improve
public
access to chemical safety information, address aspects of the
community's
right to know in relation to the control and use of industrial
chemicals and
to enable interested people, organisations and key stakeholders
to have
input into policy and decision-making processes.
The Parliamentary Secretary appoints members to the CEF. Full
membership
lists, terms of reference and meeting details for 2004-05 are at
Appendix 02.
The focus of activities this year was on finalising the
Community
Engagement Charter. The CEF also supported NICNAS in a range
of initiatives including reviewing LRCC implementation issues,
the review
of the Existing Chemical Program, and providing membership to
technical
working groups for review and reform programs.
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States and Territories Memorandum
of Understanding Group |
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States and Territories
MOU Group
(L to R):
Mr Greg Balka
(Victoria), Mr Bob Graf
(NICNAS), Dr Joe Crea (South Australia), Mr Ian Graham
(Tasmania), Dr Usha St George (New South Wales), Dr Jeff
Langley (Western Australia), Dr Roshini Jayewardene (Chair,
NICNAS), Dr David Grantham (Queensland), Mr Peter Haynes
(representing ASCC -
observer), Lewis Norman
(Secretariat, NICNAS).
Absent: Steve Caldwell (NT), Mark Brown (ACT),
Dr Wafa El-Adhami (OCS -
Observer), Dr Graeme Barden (DEH - Observer).
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The NICNAS States and Territories Memorandum of Understanding (MOU)
Group was established to facilitate the exchange of important
information
relating to chemical safety and management in Australia between
the
various levels of government. In 2004-05 the MOU group continued
to
exemplify the ongoing cooperation that exists between NICNAS and
other
government agencies, and it remains a key strategic alliance
through which
enhanced compliance is achieved.
The MOU provides an effective interface through which
compliance related
concerns are communicated and workshopped. Representatives from
the states and territories liase with other agencies in their
respective
jurisdictions to assist in the integration of NICNAS
recommendations
into health, safety and environmental controls applying to
chemical usage.
The group also provides a mechanism to ensure NICNAS responds to
the
needs of state and territory agencies responsible for the
control of industrial
chemicals.
The issue of exchanging confidential/exempt information
between
NICNAS and the Australian Government, state and territory
authorities
was addressed during 2004-05 as part of the review of the MOU
group's
efficiency and effectiveness. In response, NICNAS drafted
Guidelines for
the exchange of confidential/exempt information between NICNAS
and the
States and Territories. These guidelines outline appropriate
arrangements
between the parties in relation to the exchange of exempt and
confidential
information under the Act, and the storage and maintenance of
the
information. The guidelines will be finalised in 2005-06.
The MOU group also provided a forum for consultation on
reform programs
and other NICNAS activities, and in 2004-05 provided initial
comments
on NICNAS initiatives such as the implementation of the
Rotterdam
Convention, amendments to the Industrial Chemicals (Notification
and
Assessment) Act 1989, and the Review of the Existing Chemicals
Program.
Details of the group's two meetings for 2004-05, membership
(which
includes representatives drawn from the OHS authorities of the
various
states and territories, ASCC, DEH, OCS and NICNAS) and terms
of reference are at Appendix 02.
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External scrutiny
Administrative Appeals Tribunal |
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The Act specifies those decisions of the Minister or the
Director, NICNAS
that may be taken before the Administrative Appeals Tribunal
(AAT).
Appealable matters include decisions on confidentiality,
inventory listing,
new and existing chemicals assessments and NICNAS Registration
decisions. |
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No applications were made to
the AAT during 2004-05 (as in 2003-04 and
2002-03, and compared to four in 2001-02). The total number of
appeals
against the Director's decisions since the introduction of the
Scheme in
1990 is seven, with five withdrawn and two found in favour of
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Management of Human Resources |
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At 30 June 2005, NICNAS
employed 42 full-time equivalent (FTE) staff.
Of these, 30 are permanent employees and 12 are non-ongoing
staff.
The staffing profile for NICNAS is shown at Appendix 03, where
training and
development activities for NICNAS staff are also reported. A
total of 171.25
days of formal training (approximately 4.7 days for each person,
compared
to 6.0 in 2003-04) were undertaken in the year, including
orientation
and induction training for new staff. Compulsory training in
awareness
of Australian Public Service (APS) values continued for all new
staff and was
offered to all existing staff. New staff also undertook
compulsory customer
service training. NICNAS conducted four 'in house' seminars
during
2004-05.Top of Page
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Occupational Health and Safety (OHS) |
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Three OHS inspections were
undertaken at the Marrickville office during
2004-05, with no major health or safety issues identified within
the
premises. Two OHS seminars were presented to staff during the
year:Safety at work, our first priority and OHS
Legislation for Commonwealth
Employees (see Appendix 15 for details).
OHS information – comprising a short OHS presentation followed
by a tour
of the premises – was provided to ten new staff members during
the year.
All staff ergonomic requirements were met, including adjustments
to chair
and monitor heights and distances, the supply of wrist rests,
eye tests and
other OHS needs.
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Equity performance |
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NICNAS's mandate - to provide a
national notification and assessment
scheme to protect the health of the public, workers and the
environment
from the harmful effect of industrial chemicals - includes
provision of
information on chemicals to workers, industry, the community and
other
regulatory agencies. Chemical safety is promoted through a
variety of
information items available free of charge from NICNAS and also
available
on the website.
The Act requires the Director to publish all assessment reports
prepared
by NICNAS, which also publishes brochures, safety information
sheets,
chemical alerts and guidance notes on industrial chemicals.
These
publications generally target the needs of the end user.
Public information on industrial chemicals introduced into
Australia
is provided through the annual publication of specific
information as required
under the Act. This includes new chemicals introduced under
exemption
categories, current and previous Priority Existing Chemicals,
chemicals that
require secondary notification and those that are the subject of
low volume
permits. NICNAS was fully compliant with the Act in providing
public
information in 2004-05.
The Industrial Chemicals (Notification and Assessment)
Amendment
(Low Regulatory Concern Chemicals) Act 2004 introduced
several
mechanisms through which information on industrial chemicals and
their
introducers will be made public. For the first time since the
inception of
the Scheme, the regulator will engage with the broader
industrial chemicals
sector via mandatory NICNAS Registration of all introducers. In
addition,
all new industrial chemicals introduced under exemptions must be
reported
to NICNAS annually. This will become operational next year, with
the first
reports due on 28 September 2005. Publication of statistics on
this
information further enhances the transparency of industrial
chemicals
regulation. |
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NICNAS utilises its existing
advisory committee structure as a conduit for
information dissemination to the chemicals industry, the
community and
Australian Government and state/territory agencies. In addition,
NICNAS
routinely liaises with industry and industry associations,
employer and
worker representatives and the public through the assessment
process.
Extensive public consultation is undertaken on changes affecting
the
Scheme. Anyone (including the public) can nominate existing
chemicals
of health and/or environmental concern to NICNAS for priority
review.
Any member of industry or the community can appeal the
Director's
decisions under the Act through the AAT process.
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Financial Performance |
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NICNAS operates on a cost recovery basis.
Cost recovery is achieved in two
ways: NICNAS Registration charges and fees, and fees and
administrative
charges for new chemical assessments. In 2004-05 NICNAS
Registration
monies funded the assessment of existing chemicals, client
awareness and
education activities, 78 per cent of the costs of compliance
activities and
the administration of Registration itself. The remaining 22 per
cent of
compliance activities were funded by an appropriation from the
Australian
Government under cost recovery policy arrangements.
NICNAS's financial services are purchased through a service
level
agreement from the TGA. These administrative arrangements
include the
provision of fraud control measures, disability and purchasing
strategies,
and the management of human resources.
Total funds cost recovered from industry in 2004-05 were
$6,812,744.
At 30 June 2005, the cash at bank total of $1,461,734 resulting
from cost
recovered funds was available for carryover into 2005-06. The
net surplus
this year mainly resulted from a significant increase in the
number of
NICNAS registrations following the introduction of Tier 1
Registration in
September 2004. Additionally, cost savings were achieved by
efficiently
managing the implementation of Tier 1 Registration.
The surplus was discussed with the Ministerial appointed NICNAS
IGCC
who noted that the majority of these funds are committed to
ensure the
wide range of legislated amendments to the Act can be fully
implemented
in 2005-06 without increasing NICNAS Registration fees and
charges.
Table 2 provides a summary of NICNAS's financial performance
(accrual) for
the year. Auditing of NICNAS's financial performance is
undertaken as part
of the TGA-wide auditing process, and is included in the
financial
performance reporting in the DoHA Annual Report 2004-05.
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Table 2
NICNAS financial accrual overview
2004-05
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REVENUE |
$'000 |
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Assessments
|
1,795 |
|
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NICNAS Registration |
4,836 |
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Publication sales, industry education & research
projects |
50 |
|
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Interest |
132 |
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Government subsidy |
120 |
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Expenditure |
|
|
|
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Salaries |
3,137 |
|
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Administration |
749 |
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Indirect overheads |
1,612 |
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Surplus / (Deficit) |
1,435 |
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Ecologically Sustainable Development and
Environmental Performance |
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NICNAS operates its chemical
risk assessment activities to be consistent
with the Government's policy parameters of ecologically
sustainable
development (ESD) as outlined in section 3A of the Environment
Protection
and Biodiversity Conservation Act 1999. NICNAS ensures that ESD
policy
is applied consistently in the assessment of environmental risk
for individual
chemicals through cooperative partnership arrangements with the
DEH,
who apply scientific principles and related ESD policy in
environmental risk
assessment activities. Details of how the principles and
practices of ESD
are applied to NICNAS risk assessment practice are found at
Appendix 06.
NICNAS Registration
Please see Reform Initiatives section of this report.
Consultancies, Commissions and
Discretionary Grants
NICNAS did not make any discretionary grants for 2004-05.
Please see Appendix 04 for consultancies commissioned.
Advertising and market research
Media advertising organisations used by NICNAS in 2004-05 are
listed
at Appendix 05.
Freedom of information
NICNAS received no Freedom of Information requests in 2004-05.
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