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President/Secretary’s Review

2001–02 was a year of further change for the Repatriation Commission and the Department of Veterans’ Affairs. While continuing to successfully implement significant new policy measures, the election year brought additional intensity to this activity. Opportunities were also taken to progress strategic initiatives commenced during the past few years. Progress was achieved in areas such as the review of corporate services, enhanced health data analysis and the establishment of an e-business environment.

On 8 February 2002, the Minister for Veterans’ Affairs announced the appointment of an independent Review of Veterans’ Entitlements. The Review is due to present its report to the Minister by mid-November 2002. That report is likely to provide a focus for policy work as the Government considers its recommendations in the lead-up to the 2003–04 Federal Budget.

The Department successfully implemented three major new policy proposals during the year: the issue of Repatriation Pharmaceutical Benefit Cards (Orange Cards) to eligible Commonwealth and Allied veterans and mariners; the restoration of pension to war widows who remarried before 1984; and the extension of the Gold Card to include eligible Australian veterans aged 70 or over with qualifying service from post-WWII conflicts and resident in Australia.

Community support for veterans combined with rigorous data analysis has aided the purchasing work being undertaken in the health care area. During the year the Department finalised its program of veteran partnering contracts with private hospitals. Negotiations for a new round of contracts with day procedure centres and a pricing review of Tier 1 hospitals commenced. National tenders for the provision of rehabilitation appliance products were invited and are now being evaluated. Further cooperative health arrangements with the Department of Defence are also being explored.

Access to comprehensive information on treatment usage and costs is progressively becoming available via the Departmental Management Information System (DMIS) and the development of a national system for the reconciliation of public hospital accounts (HOTSPUR). This work sits well in the e-business environment as it will eventually allow electronic data transfer between various health administrations.

In the health policy area, pro-active community-based health care has been emerging as a priority. In late 2001, the Commission endorsed the national health promotion plan, Choose Health!, which is currently being implemented in each State Office along with projects flowing from the National Mental Health Strategy. Improvements to younger veteran health programs continued. The Men’s Peer Health Education Project has been a particular success and late in the year the Department began a pilot “Time Out” accommodation program for Vietnam veterans facing imminent family break-up.

In the compensation and income support areas, the Commission has maintained its commitment to quality decision-making, taking advantage of new technologies to support Quality Assurance in these critical areas. DVA refined its Quality Assurance system during the year, allowing it to capture and initiate reviews for payments processed through the Integrated Payment System.

The Commission is particularly mindful of the emerging demographic trends for compensation and income support payments in the next five years. For instance, it is expected that the number of income support pensioners will decline by 16 per cent, despite an expected increase in the number of Vietnam veterans becoming eligible for service pension as they turn 60 years of age, and an expected 14 per cent increase in the number of income support supplement recipients. Disability compensation claim intake is also beginning to decline.

Interest in the Military Compensation Scheme is high given the importance of the Defence and DVA Links Project and DVA’s successful administration of the Military Compensation and Rehabilitation Service and the Transition Management Service. The Department is working with the Department of Defence to seek new areas of cooperative engagement. One area earmarked for further attention is the expansion of the discharge management function.

The Department’s commemorative role continues to take a high profile. Widespread media coverage of the 60th anniversary of the Fall of Singapore, the Bombing of Darwin and the Japanese submarine attacks on Sydney and Newcastle helped remind Australians of the significance of these events in 1942, when war first came to our shores. The high quality of DVA’s commemorations work was publicly recognised with a number of awards for the Australians at War television series, including a Logie award for outstanding documentary.

The passing of Australia’s last Gallipoli veteran, Alec Campbell, in May 2002, prompted enormous public interest, highlighting the community’s continuing strong interest in our wartime heritage. During the next few years it is expected that a dual focus on youth and traditional remembrance activities will maintain this groundswell of public appreciation for the service and sacrifice of our servicemen and women.

The market testing of DVA’s records and mail management services was a key element of the Department’s Corporate Services Review. This review required detailed information about our current practices and costs in order to compare service delivery solutions provided by external organisations. DVA was unable to find a suitable provider following this process. Instead, the Department has commenced a major project to reform the in-house administration of its records and mail management services.

Following the review of financial services, the Department of Defence was given an opportunity through the Defence and DVA Links Project to tender for the provision of DVA’s accounts payable services. The Department accepted a bid by Defence’s Queensland Clerical Solutions. Arrangements for transfer are expected to take effect during 2002–03.

DVA relies heavily on stable and responsive IT systems to support its business needs. A strategic planning forum held in March 2002 considered DVA’s IT strategic directions based on a detailed analysis of each business area’s known IT needs and the demographic trends mentioned above. The plans revealed the breadth of IT work that may be undertaken in coming years and reinforced the need for increased integration of IT system delivery with external organisations.

DVA’s IT contract with IBM Global Services Australia (IBM GSA) was due to expire in November 2002 and the Department has conducted an extensive review and benchmarking exercise to evaluate its options for future IT services. I am pleased to report that this review found that our IT arrangements continue to offer good value when compared to other, more recent contracts with Commonwealth and private organisations. The Department is now negotiating with IBM GSA to renew its contract, while incorporating changes to better service DVA’s future business needs. As at 30 June, DVA’s contract with IBM GSA had been extended until February 2003.

The Department’s good financial performance for the year saw the Commonwealth’s equity in DVA increase again, having been negative from 1995–96 to 1999–2000. Cash balance also has improved, but the current level is expected to reduce in coming years as DVA embarks on further capital investments. The financial statements for 2001–02 are contained in this report and, once again, have received an unqualified audit report.

In a year that celebrated 100 years of the Australian Public Service, it is important to remember that the work of the Department depends on the commitment of its staff and their willingness to provide the best service possible. In May 2002, the Australian Industrial Relations Commission endorsed new Enterprise Agreements for the Department of Veterans’ Affairs, the VVCS - Veterans and Veterans Families Counselling Service and the Office of Australian War Graves. The contributions of relevant unions, management and staff in the negotiation process were highly valued. I am confident that the Department is in a strong position to meet new challenges in the coming years and that staff are aware of their special responsibilities to the veteran and defence force communities.

The work of the Repatriation Commission also depends on the tireless efforts of my fellow Commissioners. I am pleased to report that Major General Paul Stevens was reappointed in August 2002 for a further 12 months as Repatriation Commissioner and I would like to thank him and the Deputy President, Ian Campbell, for their continuing support.

Neil Johnston
President, Repatriation Commission
Secretary, Department of Veterans’ Affair