Results
The Commission has assessed its performance against six criteria associated with its impact and delivery. In 2018‑19, the Commission has performed consistent with these criteria. These are: providing a valuable source of robust evidence‑based analysis; generating effective public debate; being recognised as valuable by other governments; engaging effectively with the community; having open and transparent processes; and delivering timely reports. Performance against the Commission’s impact and delivery indicators is summarised below, with analysis presented in more detail in The policy and wider impact of Commission activities.
A number of factors complicate the assessment of the Commission’s performance. The Commission is only one contributor among many to the Australian policy debate and policy decision making; and the nature, scope and timing of projects commissioned by the Australian Government varies from one year to the next. Further, the Commission’s inquiry and research outputs contribute over periods of years to the public debate and policy development on a range of complex and often contentious issues. Their impact can go far beyond their immediate release. This means that the Commission’s contribution is best considered over the medium term.
Given the nature of its work, the Commission relies mainly on qualitative indicators of performance, with quantitative indicators helping to inform the assessment in some areas. The Commission undertakes periodic surveys of stakeholders to help gauge the relevance, analytical rigour and clarity of its work, as well as the effectiveness of its participatory processes and its openness and transparency. Such a survey informed the 2017‑18 Annual Performance Statement, with the next due for 2020‑21.
Impact Criterion |
The Productivity Commission is a valuable source of evidence‑based analysis to inform public policy in Australia. |
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Source |
Corporate Plan 2018–22, p. 7; Portfolio Budget Statement 2019‑20, p. 314. |
In 2018‑19, the demand for the Commission to undertake work on complex policy issues continued from the high level set in the previous year. The Commission received references from the Government for six new projects, including on mental health and national transport regulatory reform. The Commission has also been asked to develop a whole‑of‑government evaluation strategy, to be used by all Australian Government agencies, for policies and programs affecting Aboriginal and Torres Strait Islander people. The Commission completed six government‑commissioned inquiries and studies on a diverse set of topics during 2018‑19, including an inquiry into the efficiency and competitiveness of the superannuation system, and an inquiry into compensation and rehabilitation for veterans, which outlined proposals for a better way to support veterans. The Commission also completed its first five‑yearly assessment of the Murray‑Darling Basin Plan. In 2018‑19, the Commission completed its first review of nationally significant sector‑wide agreements between the Australian, State and Territory governments, with a review of the National Disability Agreement. In addition, the Commission continued its annual reporting of Australian Government assistance to industry The Commission continued to provide secretariat, research and report preparation services to the Steering Committee for the Review of Government Service Provision. It also published its second update of the COAG Performance Reporting Dashboard. |
Impact Criterion |
The Productivity Commission generates effective public debate. |
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Source |
Corporate Plan 2018–22, p. 7; Portfolio Budget Statement 2019‑20, p. 314. |
Contributions to parliamentary debate and the extent of media coverage indicate high public interest in the Commission’s work and its potential influence. During 2018‑19, about 92 federal members and senators referred to at least 33 different Commission reports or inquiries, or to the Commission’s role in policy processes. During the 2018‑19 sittings of state and territory parliaments, about 127 members referred to 44 different Commission publications or inquiries, the Report on Government Services, or to the Commission’s role. Throughout the year, the Commission released videos to coincide with the release of its draft reports for the Murray‑Darling Basin Plan: Five‑year Assessment and Compensation and Rehabilitation for Veterans in order to reach a wide audience of interested parties. The Commission rated, on average, more than 210 mentions a month in media in connection with the six completed inquiries and studies in 2018‑19. The Commission’s self‑initiated research reports also informed the public debate, including Rising Inequality? A stocktake of the evidence, which brought together the latest and most complete evidence on inequality. The Commission’s reports also continued to be widely cited in academic literature in 2018‑19, including recent reports, such as the 2017 Shifting the Dial: 5 Year Productivity Review, and older reports, such as the 2001 Australian Gambling Industries inquiry. |
Impact Criterion |
The Productivity Commission is recognised as a model for evidence‑based policy analysis worthy of consideration by other governments. |
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Source |
Corporate Plan 2018–22, p. 7; Portfolio Budget Statement 2019‑20, p. 314. |
In 2018‑19, the Commission was approached by other governments interested in its institutional arrangements, how it approaches its work and to discuss the outcomes of specific inquiries. The Commission briefed visiting officials and delegations from ten countries. The Commission also engaged with officials in China, Brazil, the Philippines and France on a range of topics, including the role of the Commission and productivity measurement and growth. The OECD and IMF cited the Commission’s work in 68 reports published throughout the year. This included references to the superannuation and horizontal fiscal equalisation inquiries, and the Report on Government Services 2018, along with older reports such as Waste Generation and Resource Efficiency (2006). In 2018‑19, the Commission continued to develop its strong relationship with the New Zealand Productivity Commission, collaborating with it on a report commissioned by both governments on growing the digital economy. |
Delivery Criterion |
The Productivity Commission engages effectively with the community. |
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Source |
Corporate Plan 2018–22, p. 7; Portfolio Budget Statement 2019‑20, p. 314. |
In 2018‑19, the Commission’s processes provided opportunities for extensive public input and feedback through hearings, workshops and other consultative forums, and the release of draft reports and preliminary findings. The Commission conducted public hearings, and/or roundtable discussions with interested parties for all of the major projects commissioned by the Government. For most projects, the Commission published a preliminary paper outlining relevant issues and calling for public submissions shortly after it received the terms of reference. In the case of public inquiries, there was an opportunity for interested parties to make submissions in advance of public hearings and following the release of a draft report. A number of inquiries provided opportunities for ‘brief comments’, a more informal avenue for feedback than submissions. The Mental Health inquiry received 180 brief comments during 2018‑19, in addition to the 537 submissions it received following the release of the issues paper in January 2019. To inform its development of an Indigenous evaluation strategy, the Commission commenced taking oral submissions. |
Delivery Criterion |
The Productivity Commission’s processes are open and transparent. |
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Source |
Corporate Plan 2018–22, p. 7; Portfolio Budget Statement 2019‑20, p. 314. |
The Commission operates under the powers, protection and guidance of its own legislation. Its independence is formally exercised under the Productivity Commission Act 1998 (Cwlth) through the Chair and Commissioners, who are appointed by the Governor‑General for fixed periods. The Commission has its own budgetary allocation and a small permanent staff, operating at arm’s‑length from other government agencies. While the Government initiates the Commission’s inquiries and studies, the Commission’s findings and recommendations are based on its own analysis and judgment. The Commission’s objectivity and independence are key strengths of its work. The Commission delivers high quality advice by ensuring analysis and judgements are scrutinised and draw on public input. The Commission’s advice to government, and the information and analysis on which it is based, continued to be open to public scrutiny in 2018‑19. As noted above, the Commission’s processes provided for extensive public input and feedback through hearings, workshops and other consultative forums, and through the release of draft reports. For example, the Commission conducted 12 days of public hearings in a range of locations around Australia for the Compensation and Rehabilitation for Veterans inquiry. In addition, the Commission made a number of key data sets and modelling publicly available to support the release of its reports in 2018‑19. These data sets included the analysis conducted for the superannuation and horizontal fiscal equalisation inquiries. |
Delivery Criterion |
The Productivity Commission delivers reports within agreed timeframes. |
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Source |
Corporate Plan 2018–22, p. 7; Portfolio Budget Statement 2019‑20, p. 314. |
All of the major projects completed in 2018‑19 were done so within the timeframes originally established by Government, or as subsequently varied by Government. The timing of tabling of commissioned inquiry reports, following completion of a project, is a matter for Government. |
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https://www.transparency.gov.au/annual-reports/productivity-commission/reporting-year/2018-2019-11