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© Queensland Productivity Commission 2016
The Queensland Productivity Commission supports and encourages the dissemination and exchange of information. However, copyright protects this document.
The Queensland Productivity Commission has no objection to this material being reproduced, made available online or electronically but only if it is recognised as the owner of the copyright and this material remains unaltered.
ISSN 2206-8724 (Print) ISSN 2206-8732 (Online)
Table of Contents
Queensland Productivity Commission 2015-16 Annual Report i
Table of Contents
FOREWORD II
THE QUEENSLAND PRODUCTIVITY COMMISSION 1 Responsibilities 1 Organisation 4
OVERVIEW OF KEY ACTIVITIES 5 Highlights 2015-16 5 Public Inquiries 5 Regulatory review 7 Sugar Industry (Real Choice in Marketing) Amendment Bill 2015 9 Competitive Neutrality 10 Publicly available publications 11 Publications submitted to Government 11
CORPORATE MATTERS 12 Governance 12 Financial performance 13 Our EMPLOYEES 13
FINANCIAL STATEMENTS 15
GLOSSARY 39
APPENDIX A : LETTER OF COMPLIANCE 40
APPENDIX B : COMPLIANCE CHECKLIST 41
ANNUAL REPORT ACCESS 43 Additional copies 43 Open Data 43 Government bodies 43 Translating and interpreting assistance 43 Feedback 43
Queensland Productivity Commission 2015-16 Annual Report ii
FOREWORD
I am delighted to have been appointed as the inaugural Principal Commissioner of the Queensland
Productivity Commission.
The Commission's first year has involved a challenging work program across a wide range of areas:
completing two public inquiries into electricity pricing and solar feed-in tariffs; a review of regulatory
arrangements in Queensland's sugar industry; assessing regulatory proposals from all government
departments; and progressing four competitive neutrality complaints.
In providing our advice, the Commission adopts a community-wide approach, which considers all costs and
benefits of a policy, not just the impacts on a particular interest or group. In this way, we aim to advise
government on the best policies and regulation for the Queensland community as a whole.
Central to this process is public consultation. We provide stakeholders with opportunities to contribute to
our work, with public forums held around the state in addition to written submissions. We also publish issues
papers, draft reports and other consultation documents, allowing public scrutiny of our work to ensure
evidence is tested and brought to bear in our findings and recommendations to the Queensland Government.
In its first year, the Commission has tackled complex and sometimes contentious issues. We hope that, while
stakeholders may not always agree with our recommendations, our rigorous and transparent analysis and
processes will promote discussion and informs evidence-based debate on key policy issues.
The creation of the Commission is the result of a significant effort from Commission staff, other government
agencies and stakeholders. I would like to thank everyone that has assisted and supported our establishment.
Looking ahead, I am committed to ensuring the Commission's work continues to contribute effectively to the
long term interests of the Queensland community.
Kim Wood
Principal Commissioner
Queensland Productivity Commission 2015-16 Annual Report 1
THE QUEENSLAND PRODUCTIVITY COMMISSION
The Queensland Productivity Commission (the Commission) is an independent statutory body, established in
2015 under the Queensland Productivity Commission Act 2015 (QPC Act) to provide independent economic
and policy advice to the government.
The Commission provides advice on complex economic and regulatory issues, and proposes policy reforms
with the aim of driving economic growth, lifting productivity and improving living standards.
In essence, the Commission aims to help the Queensland Government develop evidence-based policies and
regulation in the long-term interests of the Queensland community.
The Commission operates and reports independently from the Queensland Government—with our views,
findings and recommendations based on our own analysis and judgments. Wide-ranging, open and
transparent public consultation underpins our approach.
The Commission has an advisory role. This means that our advice and information contribute to policy
development—but policy action is ultimately a matter for the Queensland Government.
RESPONSIBILITIES
Public Inquiries
The Commission undertakes inquiries on complex
policy and regulatory issues to provide objective
advice on matters vital to the productivity of the
Queensland economy.
Research
The Commission undertakes research on policy and
regulatory matters beyond its formal inquiry
function.
Regulatory review
The Commission assists agencies to undertake
quality assessments of regulatory proposals to
support good policy development, consistent with
best practice principles.
Competitive neutrality
The Commission receives, investigates and provides
recommendations on competitive neutrality
complaints on state and local government business
activities.
The QPC will support
the Queensland Government's
objectives for the community to:
by providing
independent policy advice to:
• Create jobs and a diverse economy
• Deliver quality frontline services
• Build safe, caring and connected communities
• Protect the environment
• Drive economic growth, lift productivity and improve living standards
• Improve the efficiency and effectiveness of government services and operations
• Assess potential costs and benefits of policies, including impacts on the disadvantaged and vulnerable, and on the environment.
Queensland Productivity Commission 2015-16 Annual Report 2
OPERATING ENVIRONMENT
The Commission was established to provide independent economic advice on complex, and sometimes
controversial , matters as referred to it by the Queensland Government.
The Commission’s functions and operating principles (Figure 1) are drawn from the QPC Act .
Figure 1 Functions and operating principles
The Commission aims to provide high quality advice, helping the Queensland Government make evidence-
based policies and regulation in the long-term interests of the Queensland community.
It will do this by delivering high-quality advice, based on robust analysis, that is timely and useful to
government.
Assessing how effective the Commission is in achieving this objective is difficult because:
the Commission has an advisory role and is one source, among many, of policy advice, so:
the time taken to respond, and the nature of the response, are matters for government; and
even when advice is not supported, it still plays an important role in supporting informed decision
making;
the Commission provides advice on contentious or complex policy issues, so:
the impact of advice is often best considered over the medium to long term; and
community feedback is often informal and can be hard to document and collate systematically — and
feedback can reflect the interests of those affected by the Commission’s findings or recommendations.
Queensland Productivity Commission 2015-16 Annual Report 3
The Commission is developing a number of indicators across its activities to measure its overall performance
and its progress in achieving its objectives (Figure 2).
Figure 2 Measures of success
Some indicators of performance include:
the quantity of activities undertaken — including the number of inquiries, the number, nature and
scope of regulatory assessments made and the opportunities to deliver further support (including
through training);
the cost of activities undertaken — both for the Commission and for the agencies and stakeholders
participating in its processes;
the quality of the Commission's processes — including our transparency and accountability, the
effectiveness of consultation and the usefulness and timeliness of advice on regulatory proposals; and
the quality of analysis.
As this year’s report relates to the Commission’s performance across its first year of operation, detailed
information is not available for all measures, across all activities. Where information is available, it has been
included as a baseline for future reports, with a view to improving its comprehensiveness over time.
Usefulness of advice Nature and effectiveness of consultation.
Transparency and accountability of processes. Cost and timeliness of activities.
Measures of success
Queensland Productivity Commission 2015-16 Annual Report 4
ORGANISATION
The Board
The Board manages the Commission and ensures it performs its functions with independence, rigour,
responsiveness, transparency, equity, efficiency and effectiveness.
The QPC Act provides for the Board to be made up of the Principal Commissioner and other Commissioners
(if any) appointed by the Governor in Council. A maximum of three Commissioners (including the Principal
Commissioner) may be appointed. Board members are appointed under the QPC Act for a term of not more
than three years, and may be reappointed.
Kim Wood
Principal Commissioner
Appointed: 1 October 2015 — 30 September 2018
Mr Wood joined the Commission as the Principal Commissioner in October
2015. He has extensive knowledge of regulated industries and commercial
operations, with hands-on leadership roles at Victoria’s City West Water,
GPU PowerNet and Queensland’s Stanwell Corporation, as well as other
electricity, water and telecommunication businesses.
He has tackled both business transformation roles, and new utility start-ups,
and enjoys a challenge.
He commenced his CEO roles as the Sydney-based Managing Director of GEC
Plessey Telecommunications — and has also held senior roles with BellSouth
Australia and Hewlett-Packard. He began his career as an engineer with the
Victorian State Electricity Commission.
Organisational Chart as at 30 June 2016
* Ms Tania Homan was appointed to set up the Commission as its inaugural Executive Director (on secondment to Queensland Rail from April 2016).
Overview of Key Activities
Queensland Productivity Commission 2015-16 Annual Report 5
OVERVIEW OF KEY ACTIVITIES
HIGHLIGHTS 2015-16
PUBLIC INQUIRIES
The Commission conducts public inquiries based on Terms of Reference provided by the Treasurer.
A public inquiry is a robust,
evidence-based process.
Public consultation plays a
key role in the Commission’s
inquiries. In addition, the
Commission's advice, and the
information on which it is
based, is open to public
scrutiny.
In 2015-16, the government directed the Commission to examine
two policy areas:
Electricity Pricing — to investigate ways to improve
Queensland’s electricity pricing and productivity outcomes, now
and into the future; and
Solar Feed-in Pricing — to investigate a fair price for solar
exports produced by small customers based on the public and
consumer benefits of solar exported energy.
Both inquiries were progressed in parallel, having regard to each
other as relevant.
The Commission’s inquiry process (Figure 3) provides for all stakeholders to submit their evidence and views,
and for Commission analysis and recommendations to be publicly considered and tested.
Figure 3 Public inquiry process
The Queensland Productivity Commission Act 2015 establishes the Commission as an independent policy advisory body.
Completed the inquiry into electricity pricing in Queensland, identifying changes to improve outcomes for customers.
Completed the inquiry into a fair price for solar exports produced by small customers.
Met with more than 120 individuals or groups and received over 200 written submissions across the work program.
Provided advice and review on best practice regulation across 400 proposals.
Undertook a regulatory impact assessment of the Sugar Industry (Real Choice in Marketing) Bill 2015.
ISSUES PAPER
Identifies key issues to focus consultation &
research efforts
CONSULTATION
Submissions and consultation with interested
parties
DRAFT REPORT
Set out preliminary, findings &
recommendations
CONSULTATION
Feedback on draft report
through submissions & public hearings
FINAL REPORT
Provided to government
Overview of Key Activities
Queensland Productivity Commission 2015-16 Annual Report 6
Electricity Pricing
The government asked the Commission to examine
electricity pricing in Queensland and provide
options for improving outcomes for consumers.
The inquiry examined all segments of the electricity
supply sector in Queensland, including the major
cost drivers, and identified changes needed in the
short, medium and longer term to:
drive productivity growth and optimise pricing
and other consumer outcomes by better
managing future opportunities and challenges;
encourage greater competition in retail
markets, having regard to potential risks and
challenges for particular consumers, particularly
in regional and remote areas; and
better manage impacts for vulnerable
consumers through a targeted concessions
framework and by identifying how government
could assist consumers to better manage
demand and become more energy efficient.
Solar Feed-in Pricing
The government asked the Commission to report
on a fair price for solar power produced at the
home or business premises of a ‘small customer’
and exported into the electricity grid.
The inquiry examined:
whether there are energy, environmental,
wholesale market, network, industry
development and social benefits that are not
accounted for in feed-in tariffs;
the equity impacts of various feed-in tariff
arrangements on the least-well off in the
Queensland community;
the barriers/constraints to solar export pricing
and a well-functioning solar export market;
and
the most appropriate form and design of
regulation for regional Queensland to achieve
objectives at minimum cost.
The Commission has provided final reports for both inquiries to the Treasurer, in accordance with the
timeframes required by government (Table 1). The Treasurer must provide the Commission with a written
response within six months of receiving it. After that, the Commission must publish the Final Report.
Table 1 Inquiries undertaken 2015-16
Inquiry Date commenced Draft report Date completed Government response
Electricity pricing June 2015 3 February 20161 31 May 2016 by 30 November 2016
Solar feed-in pricing August 2015 10 March 2016 20 June 2016 By 20 December 2016
In the course of its first two inquiries, the Commissioner and staff met with more than 120 individuals,
organisations or groups and held public hearings, forums and roundtables across Queensland (Table 2).
Stakeholders provided over 190 written submissions that are available on our website,2 together with
summaries of our roundtable discussions and transcripts from our public hearings. The Electricity pricing
inquiry also convened a Stakeholder Reference Group, as required by its terms of reference, to provide
additional advice and feedback on the analysis undertaken, the proposed findings and recommendations,
and the likely effects of proposals on particular stakeholder groups.
1 In August 2015 the Treasurer extended the deadline for the Commission to deliver its draft report for the Electricity pricing inquiry
from November 2015 to January 2016, to provide further opportunity for consultation. 2 Submissions provided to us on a confidential basis have not been published. Other material has been supplied to the Queensland
Government Energy Taskforce to assist in its deliberations and will be published at a later date.
Overview of Key Activities
Queensland Productivity Commission 2015-16 Annual Report 7
The Commission seeks to encourage participation in, and raise awareness of, its inquiries by preparing an
issues paper (when a new inquiry commences) and draft report (to test the Commission's preliminary views,
findings and recommendations). The Commission's website provided on going updates on progress and
inquiry participants were also kept informed through inquiry circulars: the Commission produced 10 circulars
during the year for its two public inquiries provided to over 700 interested parties.3
Table 2 Consultation 2015-16
Electricity pricing inquiry Solar feed-in pricing inquiry
Issues paper 14 October 2015 16 October 2015
Draft Report 3 February 2016 10 March 2016
Submissions 125 68
Public consultation
Public Hearings and forums
Brisbane: 5 November 2015, 4 April 2016 Bundaberg: 7 April 2016 Cairns: 26 November 2015, 14 April 2016 Mt Isa: 18 November 2015, 13 April 2016 Rockhampton: 17 November 2015, 11 April 2016 Toowoomba: 12 November 2015, 5 April 2016 Townsville: 2 November 2015, 12 April 2016
Roundtables
Regional issues (Bundaberg): 15 October 2015 Consumer (Brisbane): 27 October 2015 Renewable (Brisbane): 29 October 2015 Emerging technologies (Brisbane): 31 March 2016
Other consultation
45
REGULATORY REVIEW
Regulation is essential for the proper functioning of society and the economy. The challenge for government
is to deliver regulation that effectively addresses an identified problem, and ensures regulation maximises
the net benefit (benefits less costs) to the community.
Regulatory Impact Analysis (RIA) is a systematic method used to provide an informed, objective and
transparent basis for regulatory decision making. The Queensland Government has the Regulatory Impact
Statement (RIS) System to assist agencies in improving the quality of regulation.
3 The Commission also produced 5 circulars as part of its Regulatory Impact Assessment of the Sugar Industry (Real Choice in
Marketing) Amendment Bill 2015 and 1 general circular.
Overview of Key Activities
Queensland Productivity Commission 2015-16 Annual Report 8
Best practice principles
help to ensure any
impacts of a proposed
regulatory change are
carefully and fully
assessed — so that those
designing, implementing
and/or approving the
regulation fully
understand its potential
impacts.
The Commission ensures agencies undertake quality assessments of
regulatory proposals to support good policy development through the use
of RIA set out in the RIS System guidelines.4 This includes:
advising agencies whether:
a regulatory proposal requires further analysis – a Preliminary
Impact Assessment (PIA) or a Consultation RIS;
the impacts of a regulatory proposal are unlikely to be significant
and accordingly, further analysis is not required;
the regulatory proposal belongs to an excluded category under
the RIS System guidelines.
providing training and guidance relating to the RIS System guidelines,
including best practice consultation.
Assessment of regulatory proposals
Figure 4 Total Assessments 2015–16
The Commission records all of the regulatory proposals
submitted by government agencies for assessment. Between 1
July 2015 and 30 June 2016, there were 295 requests for
exclusions, 104 PIAs and 7 RISs (Figure 4and Table 3).
In 2015-16, the Commission has focused on its regulatory
assessment tasks — building and developing its review team
and developing its assessment processes and practices. Over
the coming year, the Commission intends to launch its updated
training program as a means of promoting best practice
regulation and improving regulatory analysis.
Table 3 Nature and type of review activities 2015–16
Exclusion requests PIA and RIS submissions
Outcome Assessments Outcome Assessments
Excluded from further analysis under RIS guidelines
254 Not significant/No further analysis required
96
Not excluded, but not significant (no further analysis required)
33 Significant (RIS required) 3
Not excluded, further analysis required by department
1 Post Implementation Review required
5
Partially excluded 7 Consultation or Decision RIS assessed
7
Total 295 Total 111
4 The RIS System Guidelines describe the required procedure for developing regulation for Queensland government agencies under
the RIS system.
Overview of Key Activities
Queensland Productivity Commission 2015-16 Annual Report 9
SUGAR INDUSTRY (REAL CHOICE IN MARKETING) AMENDMENT BILL 2015
On 19 May 2015 the Sugar Industry (Real Choice in Marketing) Amendment Bill 2015 (the Bill) was introduced
into the Queensland Parliament. The Bill sought to 'prevent anti-competitive behaviour and promote pro-
competitive outcomes … to ensure economic viability for both growers and mill owners, among others, in
the Queensland sugar industry'.5
A regulatory impact
assessment uses a
transparent, robust
process to provide decision
makers with the
information they need to
make an assessment of the
benefits and costs of
regulatory intervention.
As the Bill was a Private Member’s Bill, it was not subject to the
regulatory impact assessment process that would normally be
undertaken for government-initiated legislation. However, Queensland
Parliament’s Agriculture and Environment Committee (AEC)
recommended that a regulatory impact assessment be completed prior
to the Bill being brought for the second reading debate.
On 30 September 2015, the Treasurer asked the Commission to
undertake an independent regulatory impact assessment of the Bill.
The assessment was undertaken in accordance with the RIS system
guidelines and with the assistance of the Department of Agriculture and
Fisheries. The assessment was based around the preparation of a:
Consultation RIS – a draft RIS publicly released to provide interested stakeholders with information to
allow informed debate; and
Decision RIS – which considers the submissions received during consultation and is designed to inform
and recommend a final policy decision.
An expedited timeframe was required to meet the Queensland Parliament’s consideration of the Bill (Figure
5), rather than the consultation practice set out in the RIS System Guidelines.
Figure 5 Decision RIS assessment process
Taking into account work done by the AEC and the Senate Committee on Rural and Regional Affairs and
Transport (Inquiry into Current and Future Arrangements for the Marketing of Australian Sugar), and 12
submissions received on the Consultation RIS, the Decision RIS concluded that:
there was no evidence to support a case for market failure in the Queensland sugar industry that would
indicate the need for additional government intervention; and
the benefits of additional regulation set out in the Bill, do not outweigh the costs.
The RIS recommended the existing regulatory framework be retained ― with no additional regulation,
providing the greatest net benefit to Queensland.
The Bill was passed on 2 December 2015. The Bill was not supported by the Queensland Government due to
the likely negative impacts. The Queensland Government notified the Australian Competition and Consumer
Commission and the Australian Government of the legislation and its concerns, including in relation to the
authorisation of anticompetitive behaviour, and requested that the matter be referred to the National
Competition Council for assessment.
5 Revised Explanatory Notes to the Sugar Industry (Real Choice in Marketing) Bill, page 2
3 SeptemberReferral from
Treasurer 30 October
Consulation RIS13 NovemberSubmissions
recieved
25 NovemberDecision RIS to Treasurer
Overview of Key Activities
Queensland Productivity Commission 2015-16 Annual Report 10
COMPETITIVE NEUTRALITY
In Queensland, the competitive neutrality principle is applied to all Government Owned Corporations (GOCs),
government agencies and local governments carrying out significant business activities or activities
prescribed under a regulation.
Competitive neutrality requires that a
public sector business, or agency,
should not have a competitive advantage
(or disadvantage) over the private
sector solely due to their government
ownership.
The Commission has responsibility for the Queensland
Government’s competitive neutrality complaints
mechanism.
It receives, investigates and provides recommendations
on complaints about the alleged failures of government
agencies complying with the principle of competitive
neutrality.
The Commission’s approach (Figure 6) to implementing competitive neutrality, receiving complaints,
undertaking investigations and providing recommendations is set out in the Competitive Neutrality and
Queensland Government Business Activities guidelines,6 and other relevant legislation.7
Figure 6 Competitive neutrality process
Upon commencement of the QPC Act and Regulations
in late 2015, four active competitive neutrality
investigations transferred to the Commission from the
Queensland Competition Authority.8
These are expected to be finalised in the first half of
2016-17. Subsequent to the Government’s response,
the Commission’s reports and the government’s
responses will be published on the Commission's
website.
6 Published by the Queensland Government and dated July 1996. 7 Includes the QPC Act, the QPC Regulation 2015, the Local Government Act 2009 and the Local Government Regulation 2012. 8 The Commission received three further complaints, however the requirements for initiating an investigation were not met.
Determine whether the complaint is
substantiated
Undertake an initial
assessment
Complaint recieived
No further action
Launch investigation
Written report to government
Overview of Key Activities
Queensland Productivity Commission 2015-16 Annual Report 11
PUBLICLY AVAILABLE PUBLICATIONS
Release Date Title
2015
14 October Electricity pricing in Queensland issues paper
16 October Solar feed-in pricing issues paper
30 October Sugar Industry (Real Choice in Marketing) Amendment Bill 2015 Consultation RIS
30 October Sugar Industry (Real Choice in Marketing) Amendment Bill 2015 Consultation RIS summary
25 November Sugar Industry (Real Choice in Marketing) Amendment Bill 2015 Decision RIS
25 November Sugar Industry (Real Choice in Marketing) Amendment Bill 2015 Decision RIS summary
2016
3 February Electricity pricing in Queensland draft report
10 March Solar feed-in pricing draft report
10 March Solar feed-in pricing fact sheet
10 March Solar feed-in pricing FAQs
June Electricity pricing inquiry and Solar feed-in pricing inquiry public hearing transcripts and discussion summaries
PUBLICATIONS SUBMITTED TO GOVERNMENT9
Date submitted Title
2016
31 May Electricity pricing in Queensland final report
31 May Electricity pricing in Queensland fact sheets
31 May Electricity pricing in Queensland FAQs
20 June Solar feed-in pricing final report
20 June Solar feed-in pricing fact sheet
20 June Solar feed-in pricing FAQs
9 The Treasurer must provide the Commission with a written response within six months of receiving a Final Report. After that, the
Commission must publish the Final Report.
CORPORATE MATTERS
Queensland Productivity Commission 2015-16 Annual Report 12
CORPORATE MATTERS
GOVERNANCE
Section 14 of the QPC Act establishes the Board as the governing body of the Commission.
The Board is made up of the Principal Commissioner, and the other Commissioners, as appointed by the
Governor in Council. A maximum of three commissioners may be appointed.
Mr Kim Wood was appointed as the first Principal Commissioner in October 2015.
The Board is accountable for the management and performance of the Commission in accordance with the
QPC Act, as well as any other applicable legislation including the Financial Accountability Act 2009 the
Statutory Bodies Financial Arrangements Act 1982. Section 15 of the QPC Act states the Board’s functions
are to (a) manage the Commission and (b) to ensure the Commission performs its functions with
independence, rigour, responsiveness, transparency, equity, efficiency and effectiveness.
The Principal Commissioner provides strategic direction and leadership across all of the Commission’s key
functions and activities. This includes an:
approval role — ensuring the Commission’s work is evidence-based and makes a positive contribution
to the long-term interests of the Queensland community;
a consultative role — leading the Commission’s public inquiries and actively engaging with stakeholders
regarding productivity and regulatory matters; and
a performance management role — reviewing Board and organisational performance to drive
continuous improvement.
Section 44 of the QPC Act says that, subject to the approval of the Principal Commissioner, the Commission
may conduct meetings of the Board in the way it considers appropriate. However, minutes of all Board
meetings must be kept. Following the appointment of the Principal Commissioner in October 2015, 10 Board
meetings were held to 30 June 2016 (Table 4).
Table 4 Board meetings 2015-16
Scheduled Special Out-of-session Total
Board meetings 7 2 1 10
The responsibility for the day-to-day conduct and management of the Commission lies with the Executive
Director. The Executive Director administers the Commission in line with the delegation, policies and
procedures approved by the Board. The Executive Director is the primary link between the Board and
Commission employees and is responsible for communicating Board policies and priorities to employees.
As a new agency, the Commission has developed policies and procedures to ensure Commissioners and
employees carry out their duties using best practices and in accordance with statutory requirements and
core public sector values. These include:
a Strategic Plan — that formalises the Commission’s vision, purpose and objectives; identifies broad
strategies to achieve them; and identifies ways to measure progress;
Codes of Conduct for Commissioners and Employees — that set out the principles and standards of
conduct expected to be put into practice, to guide decision-making, and workplace behaviour;
CORPORATE MATTERS
Queensland Productivity Commission 2015-16 Annual Report 13
a Finance Manual — that provides policies, procedures, delegations and arrangements to enable the
Commission to carry out day-to-day accounting and financial functions, in a manner consistent with the
statutory requirements;
a Guide to Inquiry Procedures — that sets out good practice for undertaking public inquires, including
consultation and stakeholder engagement and record keeping and publication of submissions; and
a Purchasing and Procurement Manual — that sets out the governance for a range of functions
including the appointment of consultants and engagement of contractors.
Risk management and accountability
The Commission’s risk management procedures are outlined in its interim Risk Management Policy. As the
Commission is a small organisation, it does not have a formal risk management committee or an internal
audit function to manage its strategic and operational risks. Instead, the senior management group considers
areas of potential risk exposure, assesses them in terms of severity and probability and ensures
arrangements in place to ensure key risks are being mitigated and opportunities taken. The Executive
Director reports annually to the Board regarding the status of risk management policies and issues.
The Commission will review its risk management policy in 2016–17.
FINANCIAL PERFORMANCE
In 2015-16 the Commission’s income was $3.1 million (largely from government funding). Over the year it
spent $2.8 million. Wages and salaries are the largest component of the Commission’s costs — however, it
also incurs costs associated with contractors and consultants, accommodation, corporate services charges
and costs associated with its consultation processes (travel and advertising).
Expenditure, including performance against budget, is reported monthly to the Board.
OUR EMPLOYEES
Workforce profile
As at 30 June 2016, the Commission employed 12 permanent employees (11.8 full time equivalents) with
specialist expertise in economic analysis, regulatory analysis and competitive neutrality policy, plus the
Principal Commissioner.
The Commission adjusts resources depending on the tasks referred by the government. It offers secondment
opportunities for Queensland Government employees with specialist experience for particular inquiries.
During 2015-16, the Commission seconded 10 employees from the Queensland Treasury, the Department
of Energy and Water Supply and Energex to work in its public inquiries, as well as two additional employees
to provide administrative support in peak work periods.
Workforce planning and performance
As a new agency, a key focus is to attract and retain capable and committed employees to provide the
capacity to maintain high quality work.
All permanent and seconded employees are appointed through a merit-based process. Permanent vacancies
(including promotions) and temporary vacancies over 12 months (other than entry level) are advertised and
filled through merit-based selection. Secondment opportunities for Queensland Government employees are
filled through a competitive expression of interest process.
CORPORATE MATTERS
Queensland Productivity Commission 2015-16 Annual Report 14
The Commission’s Human Resources Manual sets out the terms and conditions of employment under the
QPC Act. In 2015–16, the Commission also developed policies relating to workplace bullying prevention,
health and safety, antidiscrimination and sexual harassment, and domestic violence.
Flexible work arrangements
The Commission provides for flexible work practices to maximise employee’s productivity and help our
employees balance work with other commitments. These include flexible work hours, ongoing part‐time
work and purchased leave (up to an additional four weeks of leave per year). Employees may also work from
home (subject to organisational requirements).
Investing in the development of people
The Employee Capability System describes the core capabilities and expectations for Commission employees.
It is designed to support and develop employees for their own professional development and to deliver high
quality outcomes. It is used as the basis for performance planning and development, as well as career
conversations.
The Commission also seconds specialist employees for particular inquires, as it is committed to providing a
workplace that provides a positive career experience, regardless of whether they are permanent employees
or on secondment from other parts of the Queensland Government.
Early retirement, redundancy and retrenchment
During the period, no early retirement, redundancy and retrenchment packages were paid.
FINANCIAL STATEMENTS
Queensland Productivity Commission 2015-16 Annual Report 15
FINANCIAL STATEMENTS
.
Glossary
Queensland Productivity Commission 2015-16 Annual Report 39
GLOSSARY
AEC Agriculture and Environment Committee (Queensland Parliament)
ARRs Annual report requirements for Queensland Government agencies
Bill Sugar Industry (Real Choice in Marketing) Amendment Bill 2015
Commission Queensland Productivity Commission
FAA Financial Accountability Act 2009
FPMS Financial and Performance Management Standard 2009
GOCs Government Owned Corporations
ISSN International Standard Serial Number
PIA Preliminary Impact Assessment
QPC Act Queensland Productivity Commission Act 2015
RIA Regulatory Impact Assessment
RIS Regulatory Impact Statement
Appendix A: Letter of compliance
Queensland Productivity Commission 2015-16 Annual Report 40
APPENDIX A: LETTER OF COMPLIANCE
Appendix B: Compliance checklist
Queensland Productivity Commission 2015-16 Annual Report 41
APPENDIX B: COMPLIANCE CHECKLIST
Summary of requirement Basis for requirement Annual report reference
Letter of compliance
A letter of compliance from the accountable officer or statutory body to the relevant Minister/s
ARRs – section 8 40
Accessibility Table of contents
Glossary
ARRs – section 10.1 i
39
Public availability ARRs – section 10.2 Inside cover 43
Interpreter service statement Queensland Government Language Services Policy
ARRs – section 10.3
43
Copyright notice Copyright Act 1968
ARRs – section 10.4
Inside cover
Information Licensing QGEA – Information Licensing
ARRs – section 10.5
N/A
General information
Introductory Information ARRs – section 11.1 ii
Agency role and main functions ARRs – section 11.2 1-3, 5-11
Operating environment ARRs – section 11.3 2
Non-financial performance
Government’s objectives for the community ARRs – section 12.1 1-3, 5-11
Other whole-of-government plans / specific initiatives
ARRs – section 12.2 1-3, 5-11
Agency objectives and performance indicators ARRs – section 12.3 1-3, 5-11
Agency service areas and service standards ARRs – section 12.4 5-11,
Financial performance
Summary of financial performance ARRs – section 13.1 13-14
Governance – management and structure
Organisational structure ARRs – section 14.1 4
Executive management ARRs – section 14.2 4
Government bodies (statutory bodies and other entities)
ARRs – section 14.3 43
Public Sector Ethics Act 1994 Public Sector Ethics Act 1994
ARRs – section 14.4
12–13
Queensland public service values ARRs – section 14.5 12–13
Governance – risk management and accountability
Risk management ARRs – section 15.1 13
Audit committee ARRs – section 15.2 13
Internal audit ARRs – section 15.3 13
External scrutiny ARRs – section 15.4 N/A
Appendix B: Compliance checklist
Queensland Productivity Commission 2015-16 Annual Report 42
Summary of requirement Basis for requirement Annual report reference
Information systems and recordkeeping ARRs – section 15.5 13
Governance – human resources
Workforce planning and performance ARRs – section 16.1 13–14
Early retirement, redundancy and retrenchment Directive No.11/12 Early Retirement, Redundancy and Retrenchment
Directive No.16/16 Early Retirement, Redundancy and Retrenchment (from 20 May 2016)
ARRs – section 16.2
14
Open Data Consultancies ARRs – section 17
ARRs – section 34.1
43
Overseas travel ARRs – section 17
ARRs – section 34.2
43
Queensland Language Services Policy ARRs – section 17
ARRs – section 34.3
N/A
Financial statements
Certification of financial statements FAA – section 62
FPMS – sections 42, 43 and 50
ARRs – section 18.1
36
Independent Auditor’s Report FAA – section 62
FPMS – section 50
ARRs – section 18.2
37
FAA Financial Accountability Act 2009
FPMS Financial and Performance Management Standard 2009
ARRs Annual report requirements for Queensland Government agencies
Annual report access
Queensland Productivity Commission 2015-16 Annual Report 43
ANNUAL REPORT ACCESS
ADDITIONAL COPIES
A copy of this report can be obtained by contacting us as follows:
Email [email protected]
Mail Executive Support
Queensland Productivity Commission
PO Box 12112
George Street
BRISBANE QLD 4003
Tel (07) 3015 5111
Fax (07) 3015 5199
This report is available online and in PDF format on our website: http://www.qpc.qld.gov.au/about-the-
commission.
OPEN DATA
Further information on the following is available through the Queensland Government’s Open Data website: qld.gov.au/data:
Consultancies 2015–16
Overseas travel 2015–16
GOVERNMENT BODIES
The Queensland Register of appointees to Government bodies provides access to information about
government bodies including descriptions, contact details, and lists of appointees.
TRANSLATING AND INTERPRETING ASSISTANCE
The Commission is committed to providing accessible services to Queenslanders from all
culturally and linguistically diverse backgrounds. If you have difficulty in understanding the
annual report, you can contact us on (07) 3015 5111 and we will arrange an interpreter to
effectively communicate the report to you.
FEEDBACK
Readers are encouraged to provide feedback on the contents or structure of this report by contacting us at