Secretary's review

Photo of Connall O'Connell

As for the nation as a whole, 2008–09 was a challenging year for our agriculture, fisheries and forestry industries, and for the communities that rely on them. The department has worked to help them meet the immediate challenges and prepare for the future.

We have experienced some extraordinary events. Spikes in world food and input prices, followed by the shock of the global financial crisis. The worst bushfires in our history at the same time as some of our biggest floods. A drought that has eased in some areas of the country and tightened in others. A serious shortage of water for irrigation in the Murray–Darling Basin, which may take some years to overcome, and which foreshadows the changing climate to which we will need to adapt. All these called for significant and immediate responses.

Faced with these challenges, we positioned the department to engage creatively in the critical areas of productivity, climate change, drought, world food security, trade liberalisation and biosecurity.

The need for innovation, productivity and sustainability across all sectors continues to drive our efforts.

Strengthening biosecurity

In 2008–09 our biosecurity staff assisted the safe movement of more than 12.8 million incoming air and sea passengers and their luggage, 1.8 million containers of cargo and 137 million mail items, with no major outbreak of an animal or plant disease or pest. This is just a sample of our work to protect our productive industries, human health and our unique environment.

We also certified Australian export produce to meet our trading partners’ requirements and so help maintain our $32 billion¹ agricultural export trade. At times this meant negotiating technical market access requirements at short notice with other countries’ quarantine agencies.

The capacity of our biosecurity staff to respond in the face of changing circumstances was again shown during Australia’s response to the spread of pandemic (H1N1) influenza. Working closely with the Department of Health and Ageing as influenza threatened Australia, we planned, coordinated and provided logistical support to screen arriving passengers at air and sea ports.

The report of the Quarantine and Biosecurity Review panel, chaired by Roger Beale AO, was released by the minister in December 2008. One biosecurity: a working partnership (see page xiii) describes Australia’s biosecurity system as ‘often the envy of other countries given its comprehensiveness, transparency and scientific rigour’. However, it does recommend ‘far-reaching changes to rectify … problems while enhancing the good aspects’.

In releasing the report, the government also agreed in principle to all 84 recommendations of the Beale review. These propose the biggest overhaul of our biosecurity system in 100 years.

To make a head start on these reforms, the department put in place interim structural changes to take place from 1 July 2009. Our biosecurity functions, previously undertaken by four different groups, are now combined in the new Biosecurity Services Group for 2009–10.

In preparing for the changes ahead, our priority has been to ensure that our front-line biosecurity people can continue their critical work with minimal disruption.

Adapting to climate challenges

Exceptional Circumstances assistance is currently the government’s main means of supporting drought-affected farmers and businesses. During 2008–09 the department provided more than $339 million in Exceptional Circumstances income support to 26,831 farming families and small businesses. We provided $493.53 million for interest rate subsidies to around 16 310 farms and 1014 small businesses.

As the changing climate delivers more extreme weather more often, our existing EC support measures may not be sustainable. Events that were once exceptional will become increasingly frequent.

In 2008–09, DAFF coordinated the government’s review of drought support measures. This included investigations into the climatic, economic and social aspects of drought and drought support by, respectively, the Bureau of Meteorology and CSIRO; the Productivity Commission; and an expert social panel chaired by Peter Kenny. The review had valuable input from thousands of farming community members and industry representatives.

The department continued implementing Australia’s Farming Future, a four-year, $130 million research and training program to help the farming sector boost productivity and adapt to climate change.

The minister appointed an independent Rural Research and Development Council, chaired by Dr Kate Fairley-Grenot, to provide him with high-level advice to improve the effectiveness of the government’s investment in rural research and development, including addressing climate change.

Of all industry sectors, farming may have the most to lose from climate change. Research is critical to unlocking productivity growth in the face of environmental pressures. Under the Climate Change Research Program, we administer the government’s four-year, $46.2 million allocation for research and development to help primary producers adapt to climate change.

The minister announced three research priorities for the program: reducing greenhouse gas pollution, improving soil management and adapting to a changing climate. Major projects include research into soil carbon, nitrous oxide emissions in soil and emissions from livestock. Industry research bodies including Meat & Livestock Australia and the Grains Research and Development Corporation have also provided funding.

Through Australia’s Farming Future we deliver FarmReady Grants to fund advice and training for farmers on how to deal with the effects of climate change on their properties. Demand for this scheme was strong. In the first three months, we approved around $13 million of assistance for more than 1500 individual training activities through some 200 grants.

We also implement the Climate Change Adjustment Program to help farmers adjust to the adverse effects of climate change. This includes those who continue to experience hardship after coming out of drought. The program provides action plans that map the process for businesses to adjust to changes in climate. It also provides re-establishment grants of up to $150 000 to help people who have decided to leave farming.

Global challenges

The department supported the minister’s close engagement with the international debate on complex and interrelated global problems that pose significant risks to agricultural production and have implications for peace and prosperity. The minister’s contributions included:

• addressing the United Nations Food and Agriculture Organization in November 2008, where he highlighted the link between climate change and food security
• participating in the Madrid High-Level Meeting on Food Security for All in January 2009
• emphasising at the inaugural G8+ meeting of agriculture ministers in Italy in April 2009 that the world needs to boost productivity and liberalise trade to secure an affordable and sustainable long-term food supply.

Global events continue to reinforce the interdependence of nations. The spread of pandemic (H1N1 influenza) drove home the importance of collaboration within and between governments.

Reprioritising resources

The biosecurity review and budgetary developments brought considerable changes in priorities across the department.

In its 2009–10 Budget, facing tough economic circumstances and reduced revenue, the government asked the department to reduce overall running costs by a further 1.2 per cent over the previous 3.25 per cent efficiency dividend. At the same time a number of portfolio initiatives successfully concluded, and funding for those areas wound down.

In response, we made tough but necessary decisions that have called for the redeployment of some staff. In doing this, we have been guided by the need to:

• continue to meet our statutory requirements and deliver on election commitments and the minister’s priorities
• maintain our core capacity and skills
• make better use of existing expertise
• properly resource emerging areas of work.

In refocusing the department’s resources to meet these criteria, our priorities include:

• reforming national biosecurity functions while maintaining our delivery focus
• supporting the government’s reform of drought policy and programs while continuing Exceptional Circumstances assistance to people in drought-declared areas
• efficiently delivering key programs such as Australia’s Farming Future and Caring for our Country
• helping our industries become more productive, including by promoting their access to markets and improving economic analysis of their productivity drivers
• helping the government integrate its climate change and food policy objectives.

Importantly, we will not reduce funding for front-line biosecurity staff to meet the savings requirements.

Harnessing corporate expertise

The department consolidated our support services—human resources, finance and communications—following a review in 2007–08. By bringing related specialists together, we intend to improve collaboration, service standards and strategic thinking across the department.

We have also reformed our governance structure. We established formal committees for people management, business improvement, information and communications technology, legislation and deregulation.

These committees report directly to the executive management team, which is my main advisory body. We have strengthened our approach to risk management by establishing a risk management audit subcommittee under our audit committee.

Photo of some of the 2009 DAFF Development Awards winners with senior executives of the department (photo: DAFF)

Our people

In a ballot managed by the Australian Electoral Commission in June 2009, 92 per cent of voting staff supported our new Collective Agreement 2009–11.
A priority in developing this agreement was to enhance our competitiveness as an employer to attract and retain high-calibre people. Major elements include:

• a new classification and pay structure that brings the department into line with the broader Australian public service structure
• more flexible leave conditions, including extended maternity leave, leave for volunteer work, temporary salary reductions in exchange for paid leave, and extended recreation leave at half pay
• a 4.1 per cent pay rise each year of the two-year agreement.

In a challenging year, we have worked successfully to refine our structures and systems to position the department for a period of change in many critical areas.
The fact that our staff have performed to such a high standard at a time of considerable uncertainty is a testament to their commitment and professionalism.

 [signed]

Conall O’Connell
Secretary