DEPARTMENT OF INFRASTRUCTURE

ANNUAL REPORT 1997–98

DEPARTMENT OF INFRASTRUCTURE CONTENTS Contents Appendixes Financial statements Summary offinancialresults Creating avalue-adding organisation governmentandheritagePlanning, local Transport safetyandregulation Public transport Road systemmanagement Major projectscoordination Land-use andtransport planning Organisational structure About thedepartment ofinfrastructure Secretary’s foreword otbn eeomn 18 11 4 5 7 3 15 17 14 5 17 Southbank development Airport link Sports andentertainment precinctandrelocation ofthebatman avenue tram Federation square andjolimontprojectcoordination Melbourne docklandsandmultipurpose stadium Melbourne citylinkandexhibitionstreetextension Building services Major civicprojects–agenda21 Rural andregionalpolicy A newmetropolitan strategic framework Strategic framework Making adifference oddvlpet19 20 21 Traffic androadusemanagement Road systemmaintenance Road development oe’ ntaie 53 51 51 46 50 48 49 44 39 35 34 34 Women’s initiatives Youth initiatives Knowledge management 30 Contract management 29 Human resourcestrategies 31 Implementing outputmanagement 25 Information technology Business systems Regionalisation 27 International affiliations Panels Building policy Land monitoring Heritage Statutory planning government Local Taxi andtow-truckinitiatives Registration andlicensing Road safety Public transport safetyandregulation National transport agenda V/Line Freight andVictrack Improved publictransport performance Metropolitan busservices Bus contracts 23 Corporatisation ofthepublictransport corporation andfranchising thebusinesses 57 19 87 55 45 35 31 23 18 52 45 43 43 43 42 33 24 iii 7 3 2 1 SECRETARY’S FOREWORD

iii ANNUAL REPORT 1997 – 98

In the two years since the Department of Infrastructure (DOI) was established we have:

■ dealt with the accumulation of major project development issues which were previously being handled multilaterally by the agencies incorporated in DOI in April 1996

■ created a compact organisation to support the three portfolio Ministers, and pursue government objectives in the built-form arena in an integrated way Dr John Paterson

■ created an array of superior professional capabilities to provide analytical, project development and program integration services

■ made good progress on IT and other systems development to support departmental and wider governmental operations.

Our most tangible results are evident in coordination of major projects such as:

■ Federation Square

■ new facilities and improved circulation within the Sports and Entertainment Precinct

■ a major new stadium at Docklands

■ rationalising railway use in the Jolimont rail yards to improve through-running and create space for a major new riverside park

■ extending Exhibition Street across Jolimont, to improve the connection between Melbourne City Link and the city, and to 97–98 – 1997 improve tram services to the Sports and Entertainment Precinct

■ planning Dockland’s internal transport infrastructure and its connection to the wider transport system.

Other DOI activities, while less visible than our physical projects, are likely to be of great significance in the longer term:

■ overhaul of the land-use planning system Sue Jaquinot and Lyndon ■ development of a new management approach with and Thompson launching the Year 2000 sticker campaign. for local government Stickers will change in colour ■ creation of a public transport contracting framework for from red to yellow and finally green as equipment becomes the privatised public transport services. Year 2000 ready.

Work has begun on the piles, footings and foundation walls for the Federation Square project. The obsolete tracks in the Jolimont rail yards are being iv dismantled.

Over the past two years, DOI has refocused existing functions and services and built a depth of professional capacity to support long-term decisions on land-use and infrastructure development:

■ a highly qualified multidisciplinary team has been assembled in the Strategic Planning and Economic Services Division

■ contract management is a significant feature of DOI’s work. A Contract Management Unit has been established to upgrade contracting arrangements and train for this core activity across the portfolio

■ the Office of Local Government has been reoriented to permit more suitable dealings with an increasingly capable local government sector DEPARTMENT OF INFRASTRUCTURE DEPARTMENT ■ information management and access is a critical priority to maximise the performance of DOI and its agencies. State-of-the-art information systems are being developed and implemented across the range of DOI operations. These business systems and support tools are transforming the way the organisation works

■ key capabilities have been developed in the areas of contract management, knowledge management, IT, financial management and analytics, and supported through DOI’s comprehensive training, development and performance management systems.

Beyond their application to project development, evaluation and implementation, many of our growing capabilities will find application in broader strategic thinking in the year to come.

(Dr) John Paterson Secretary Department of Infrastructure

The Sports and Entertainment Precinct will be much more easily accessible from the city through a ‘transport corridor’ for pedestrians, trams and trains. ABOUT THE DEPARTMENT OF INFRASTRUCTURE

1 ANNUAL REPORT 1997 – 98

PURPOSE

The purpose of DOI is to:

contribute to continuing improvement in Victoria’s competitiveness, quality of life, employment and business growth through integration, development and management of planning, roads, transport, ports, major projects, building and local governance.

Collectively, DOI provides development of major transport and land-use projects and improved strategic planning for Victoria’s future land-use, transport and civic facilities.

The core DOI role is to provide the mechanisms for strategic planning, the coordination and integration of projects and for the sharing of key capabilities, knowledge and expertise.

DOI supports three ministerial portfolios of Planning and Local Government, Transport, and Roads and Ports. In addition to its coordination and corporate role, DOI also has specific areas of responsibility. These include evaluation and analysis of infrastructure investment, land-use planning, heritage, urban design, local government, major civic projects, transport and infrastructure strategic planning, public transport, ports industry and transport safety and regulation.

DOI portfolio agencies provide a range of transport, building, land development and regulatory services, extending from VicRoads and the Public Transport Corporation’s (PTC) businesses to smaller regulatory bodies and agencies.

The infrastructure statutory authorities also produce their own annual reports: The Department’s Executive Committee manages the overall direction and business ■ Architects Registration Board activities of DOI.

■ Building Control Commission

■ Docklands Authority

■ Heritage Council

■ Marine Board of Victoria

■ Melbourne City Link Authority

■ Plumbing Industry Board

■ Public Transport Corporation

■ Roads Corporation (VicRoads) Back: Jon Hickman, Sue Jaquinot, John McMillan ■ Urban Land Corporation. and Bob McDonald Centre: Gail Moody, Dr John Paterson, Maggie Baron and John Taylor Front: Tony Butler

● The Strategic Planning Committee comprises heads of Infrastructure agencies to ensure a coordinated approach to key issues and Infrastructure projects. ● DEPARTMENT OF INFRASTRUCTURE 2

MINISTERS

INFRASTRUCTURE COMMITTEE OF CABINET

HON ROBERT MACLELLAN MLA HON ROBIN COOPER MLA HON GEOFF CRAIGE MLC Minister for Planning and Local Government Minister for Transport Minister for Roads and Ports

SECRETARY

SECRETARY DEPARTMENT OF INFRASTRUCTURE

(Dr) John Paterson ORGANISATIONAL STRUCTURE

DIVISIONS

Local Government, Planning Contracts, Regulation and Organisational Development Strategic Planning and Corporate Finance and Market Information Services Compliance Services and Corporate Support Economic Services Bob McDonald Jon Hickman John McMillan Sue Jaquinot David Berry

• Building Services Agency • Contracted • Victorian Taxis • Corporate and Business Planning • Budget Monitoring and • Strategic • Ministerial • Heritage Victoria Transport Services and Tow Trucks • Corporate IT Services Reporting Planning Liasion and • Land Monitoring • National – • Organisational Consultancy • Corporate Financial • Infrastructure Coordination Interstate • Local Government Policy • Personnel and Corporate Services Management Planning Transport • Office of Major Projects • Human Resources Development • Output Monitoring and • Public Transport • Public Transport Reporting Planning • Planning, Building and Safety • Employee Relations

SERVICES • Financial Systems • Infrastructure Development • Public Transport • Public Affairs Investment Policy • Accounting Operations • InfraLib Programs • Public Transport • Financial Planning and Analysis Services • Analysis and Forecasting

• Architects Registration Board of • Public Transport • Marine Board • VicRoads Victoria Corporation • Building Control Commission • Building Advisory Council • Building Appeals Board • Building Practitioners Board • Building Regulations Advisory Committee • Docklands Authority • Heritage Council • Melbourne City Link Authority • Plumbing Industry Board

INFRASTRUCTURE AGENCIES INFRASTRUCTURE • Urban Land Corporation • Victoria Grants Commission

REGIONS

North-Western Metropolitan Northern South-Western, Western Eastern, North-East South-East Metropolitan

(incorporating Planning, Local Government, Transport and VicRoads)

Planning and Local Government Transport Roads and Ports All Infrastructure Portfolios

3 ANNUAL REPORT 1997 – 98

broad direction and strategies for the development and broad direction and strategies for the development systems management of infrastructure and land-use multi-agency, integrated planning and coordination of public development projects key precincts, strategies and investment priorities for regions and corridors. planning transport and land-use ■ ■ ■ Making a difference the establishment of DOI is making the It is in this area that the achievement of the Government’s biggest difference to improved overall outcomes objectives. It is providing planning and the coordination through integrated strategic land-use systems, investment programs of infrastructure and delivery. and cross-agency project are being realised through a holistic Improved outcomes infrastructure forms approach, which transcends individual the following key and land-use developments, focusing on deliverables: LAND-USE AND TRANSPORT PLANNING LAND-USE AND TRANSPORT 4

METROPOLITAN Strategic framework

An integrated series of strategies provides a framework for the development and management of the State’s transport and land-use systems.

Metropolitan strategies include:

■ Living Suburbs, the Government’s metropolitan policy, provides a broad perspective of Melbourne’s future development, focusing on key goals, including economic development, competitiveness, liveability and environmental quality. However, the need for a more focused and contemporary strategy is underlined by the redefinition of central Melbourne. This refocus on the metropolitan work is the result of major projects completed and under

DEPARTMENT OF INFRASTRUCTURE DEPARTMENT way, demographic trends and related lifestyle, housing and residential location preferences, and will be reinforced by the outcomes of significant infrastructure and land-use system studies currently in progress

■ Transporting Melbourne provides direction for the development of an integrated transport system for Melbourne and sets out a series of investment, regulatory and reform actions to achieve those directions. DOI is updating the Transporting Melbourne strategy in response to public submissions and issues which have emerged since the publication of the original strategy. The Department has also followed up on a number of key Transporting Melbourne initiatives through key studies and strategies including a metropolitan train service strategy, a cross-town ‘SmartBus’ bus strategy, and an intermodal transport interchange study.

These strategies recognise key issues and trends, including the need for competitive infrastructure and industries, a high-quality urban environment, a strong sense of city identity character and style, and choice in housing and residential location. The key directions and priorities set out in the strategies reflect the need to address these key issues. They include:

■ slowing outward growth and increasing opportunities for central and inner-city development, reinforced through development of major urban precincts, in particular the Sports and Entertainment Precinct and Docklands

■ upgrading the public transport system with the objective of increasing patronage by 50 per cent within 20 years. Priorities include the upgrading of metropolitan train services through improved rolling stock, service upgrades and selected system extensions. A major priority is the upgrading of cross-town ‘SmartBus’ bus services and improved intermodal facilities, particularly bus/rail, to assist the development of a seamless integrated service

■ completion of strategic road links focusing on the metropolitan orbital, cross town travel needs and links to regional Victoria. Priorities include the development of the Eastern Ring Corridor, key links such as Geelong Road and the Hallam Bypass, and ongoing metropolitan arterial and traffic improvement needs.

To reinforce these priorities, DOI has produced a series of precinct, corridor and regional strategies including:

■ a transport network plan for the Docklands

■ exhibition of an Environmental Effects Statement (EES) for the Scoresby Transport Corridor

■ development of an exhibition of a planning reservation for an airport rail link 5 ANNUAL REPORT 1997 – 98

■ the transport strategy and implementation program for the City of Casey

■ public transport corridor planning as an input to rail privatisation, including the Sydenham rail extension, the Mont Albert tram extension, and an airport rail link.

A new metropolitan strategic framework The Minister for Roads and Ports, Mr Geoff Craige, opened the Darnum Interchange in January 1998. There is a need for a new metropolitan strategic framework, which The Darnum Interchange is part of a progressive not only takes into account the key and emerging issues outlined upgrading of the Princes Highway to full freeway above, but provides a clear focus and leadership for metropolitan standards between Melbourne and Traralgon. development and infrastructure investment through both the public and private sectors. During 1998-99, DOI will complete Phase 1 of a metropolitan strategic framework comprising the identification of:

■ the major demographic, social, economic and development trends in the metropolitan system

■ ‘priority actions’ areas. Phase 2 will be based on a program of strategic research studies including:

■ analysis of trends in the demographic structure and distribution of economic activity

■ revised population, employment and land release forecast RURAL ■ analysis of trends in urban form, including activity centres

■ a land and infrastructure asset utilisation study

■ a transport and land-use systems study

■ a strategic infrastructure investment study

■ a freight movements and efficiency study

■ modelling of future Melbourne development scenarios.

Rural and regional policy

Progress is being made on the development of strategies for Victoria’s rural and regional areas:

■ DOI is undertaking the development of a whole-of-government rural and regional policy with the Department of Premier and Cabinet. The policy is being developed through the direct involvement and initiative of regional communities and leaders. It will be reinforced by regional strategies developed through a process being managed by DOI. The policy and strategies will focus on regional leadership and initiative, and identify those priority actions required to maximise regional development and potential

■ DOI has developed a draft Transporting Victoria strategy for release by the Government in the near future. The strategy provides a framework for the development of a robust and economic transport system for rural and regional Victoria into the next century. It sets strategic directions for a transport system that responds to local, regional and market needs, is safe and secure, provides high-quality services and is environmentally responsible 6 DEPARTMENT OF INFRASTRUCTURE DEPARTMENT

Forum members at the Rural and Regional Policy launch. 97–98 – 1997

■ the Government has released the Linking Victoria rural arterial road strategy setting out a clear and community-oriented strategy for managing Victoria’s major rural roads. The strategy addresses key issues, including support for a competitive rural economy, inter-regional links, road safety and standards, and the protection of rural environments.

The key directions and priorities set out in the Transporting Victoria and Linking Victoria strategies include:

■ developing a road and transport system that is user friendly and makes personal travel easy through a simple road-route marking and numbering system reflecting road quality and function, and the provision of passenger transport hubs at major regional centres

■ providing a more efficient trade transport system that meets market needs by: improving road access to the Ports of Geelong and Portland; upgrading substandard road bridges; creating a rail bypass of Wodonga (subject to a federal contribution); and encouraging the development of high productivity and innovative transport vehicles.

These directions and priorities will be further focused and enhanced with the completion of the Rural and Regional Policy and complementary regional strategies. MAJOR PROJECTS COORDINATION

7 ANNUAL REPORT 1997 – 98

The coordinated delivery of major public development projects across a range of agencies and infrastructure forms has been given a particular priority in DOI’s early life. DOI has taken an integrated, precinct-wide approach to the management of these projects including: the development of an integrated and agreed precinct plan to achieve optimal outcomes for the community as a whole; clear definition of management responsibilities; a project-monitoring and management framework; and oversight by a strategic planning group comprising DOI executive and majorchief executive officers of key infrastructure agencies. projects

Major civic projects – Agenda 21

The Office of Major Projects (OMP) manages the Government’s interests in the delivery of nominated public construction and property development projects formally assigned to the Office under the Project Development and Construction Management Act. OMP is the principal on all contracts and has direct responsibility for all aspects of the project, including feasibility, scope, funding, business planning, site acquisition, cost and time control and client establishment, in addition to the management of the design and construction process. Projects currently in progress have an overall capital value in excess of $2 billion. The primary focus of the public construction projects funded by government is the revitalisation of the major cultural and sporting infrastructure of Melbourne.The land development projects are undertaken in association with private-sector support for inner urban consolidation by the creation of new medium-density residential precincts on underutilised government land. 8

AGENDA Melbourne Museum

The opening of the Imax Theatre in May 1998 marked an important interim phase of the construction of the new $263 million Melbourne Museum in the Carlton Gardens, providing future visitors with an early introduction to the Museum’s new home. Construction works are due for completion in September 1999, allowing time for the Museum to install new exhibitions for the scheduled Construction works at the new Museum site in Carlton Gardens are due for completion in opening to the public in mid-2000. September 1999.

DEPARTMENT OF INFRASTRUCTURE DEPARTMENT State Library of Victoria

The staged refurbishment of the State Library continued with the completion and opening of the La Trobe infill building and the Newspaper Reading Room in the north-east courtyard, further enhancing the major improvements to library room services provided to the public. Re-landscaping to the library forecourt has opened up the view of the library from Swanston Street and provided an outdoor space for library users and the public. In the next year, work will begin on the construction of the southern courtyards and refurbishment of the remaining areas of the central dome for further improvements to library services. Also, a fitting out will take place of McCoy, Macquarie and Kershaw Halls for a two-year occupancy as a temporary exhibition venue by the National Gallery of Victoria during the refurbishment of its St Kilda Road building.

Interior view of the McArthur Gallery at the State Library. 21 At the Immigration Museum’s Tribute Garden, members of families whose names are already engraved for posterity stand proudly behind the granite prototype. 9 ANNUAL REPORT 1997 – 98

Victoria Archives

A revision to the scope of the proposed new $32 million Victoria Archives building to include provision for storage for the National Gallery of Victoria, in addition to the Public Record Office, has led to the acquisition and clearance of the former Government Printer site in North Melbourne, and the appointment of the contractor to undertake construction of the building. Completion is scheduled for mid-1999 and the National Gallery of Victoria will initially take up a large portion of the building to house its collection during refurbishment work at St Kilda Road.

Old Customs House

The $19 million refurbishment and redevelopment of the Old Customs House in Flinders Street as an Immigration Museum and a Museum of Hellenic Antiquities has progressed to the point of allowing the Museum of Victoria access to the galleries to begin installation of the exhibits for the scheduled opening in November 1998. A Tribute Garden to exhibit the family names of immigrants to Victoria is being constructed in the northern garden leading from the rear courtyard of the building up to Flinders Lane.

Federation Square

Schematic design was completed and a model of Federation Square was unveiled for this exciting development over the rail yards, which will provide a new civic square, an indoor winter-garden and new buildings for a Museum of Australian Art, Cinemedia

Centre and SBS. Additional attractions to the site include a Visitor A computer generated impression of how Federation Information Centre and a range of indoor and outdoor dining and Square will look. specialty retail facilities. Work began in November 1997 on the piles, footings and foundation walls for the project, in conjunction with rationalisation of the rail lines by the PTC. A construction contractor has been appointed for the remainder of the works, and construction of the deck over the rail lines will start in September 1998. The redevelopment of the Beacon Cove railway station and new civic square has been completed. Beacon Cove

The residential development at Beacon Cove in Port Melbourne continued at a hectic pace, marked by the sale of the 600th dwelling unit. Three hundred homes are now occupied and construction of the third waterfront residential tower has begun. The redevelopment of the railway station and a new civic square was completed when the first shops forming part of the commercial precinct surrounding the boat harbour were opened. Planning has started for the redevelopment of Princes Pier into apartments and the enhancement of the beach to the west of the pier. The Victorian Government is to spend $24.5 million developing world-class netball and hockey facilities in Royal Park. 10

Other projects

Public construction

■ National Gallery of Victoria redevelopment

■ Royal Exhibition Building refurbishment

■ Melbourne Exhibition and Convention Centre A new covered footbridge now footbridge connects the Melbourne Convention Centre to the ■ Melbourne Sports and Aquatic Centre Melbourne Exhibition Centre. ■ Melbourne Park (riverside parkland)

DEPARTMENT OF INFRASTRUCTURE DEPARTMENT ■ Docklands railway works

■ Multi Purpose Venue at Melbourne Park

■ Sports and Entertainment Precinct infrastructure

■ Royal Park hockey and netball facilities

■ Sidney Myer Music Bowl refurbishment The Melbourne Sports and Aquatic Centre experienced ■ Regent Theatre refurbishment capacity utilisation within its first six months. ■ Commonwealth Games bid (2006).

Property development

■ Kensington Banks residential development

■ Mont Park residential development

■ Eastside (Jolimont) residential development.

Railway works were necessary at the Docklands site so that work on the stadium could begin.

The Sidney Myer Music Bowl will undergo a $14 million refurbishment. ANNUAL REPORT 1997 – 98 11 BUILDING Warrnambool Police Station. Warrnambool Malmsbury Correction Centre. Building services Building services Agency (BSA)The Building Services to the ever- has responded within DOI, its client-base and the construction changing environment and has moulded itself into a vibrant commercial industry in general, of the sights set on the future. A total review organisation with its produced in March 1998, and a strategic plan business was conducted which positions BSA well for privatisation. of BSA been made in aligning the performance Significant gains have balance between revenue over the past 12 months to achieve greater privatisation pending, aggressive measures have been and costs. With public-sector operations and taken to smooth the transition between of 25 per cent, and full privatisation. These include staff reductions Board, with commercial and industry the establishment of an Advisory expertise, to monitor performance. BSA targeted profits and providing clients had a very successful year in 1997–98, accomplishing own building and asset management outcomes. with services necessary for achieving their and redocumentation meant a total systems overhaul Striving for continuous improvement has input at all levels Significant employee Quality System, which is certified to ISO.9001. of BSA’s system, while ensuring that services are consistent has produced a user friendly and flexible and of high quality. in the Award Management During 1997–98, BSA received three awards: the P&O Facilities Institute and New Zealand Asset Management Competition; the Australian 1997 Australian and Tow Taxi for the fit-out of the Victorian of Building Certificate of High Commendation Elliot Pty Ltd and Directorate, North Melbourne; and was joint recipient, with Peter Truck Conservation Category, Glover Pty Ltd, of the John George Knight Award, Curnow Frieverts Place refurbishment and fit-out. for the 2 Treasury Architecture Awards, 1998 Victorian of projects infrastructure. The diversity BSA role in the development of Victoria’s has a significant Ballarat police and courts include police stations at Oakleigh, Shepparton and Warrnambool; Grange, Carrum Downs complex; a new Planetarium at Scienceworks; new schools at Werribee condition assessments of every room in every building of 1,700 schools in the and Warana; Education; the relocation Management System project for the Department of Physical Resource River; a new pedestrian bridge at Tidal Reserve; of the Department of Education to Treasury and standards and condition assessments of built assets for various public buildings. The refurbished facade of 12 Treasury Place.

Planetarium

The $6 million Planetarium at Scienceworks will integrate with existing Scienceworks ticketing, circulation and car-parking arrangements. The technical requirements for the Planetarium theatre have led the construction design. The structure must be rigid to prevent movement of the dome, and must also provide the most economical form of acoustic construction.

The external feature for the building is one of the world’s largest sundials. The giant sundial, located on the north facade, forms a daytime astronomical exhibit and will be seen from as far away as the West Gate Bridge. DEPARTMENT OF INFRASTRUCTURE DEPARTMENT

An artist’s impression of the new Planetarium at Scienceworks.

Austin & Repatriation Medical Centre/Mercy Redevelopment Project

In November 1997, the Minister for Health announced three proposed metropolitan projects for possible private-sector involvement. The largest of these was the Austin & Repatriation Medical Centre (A&RMC)/Mercy Redevelopment Project. This project involves the consolidation of the Austin & Repatriation campus of the A&RMC, Mercy Hospital and Larundel campus (North Eastern Psychiatric Services) onto the Repatriation campus site. The redevelopment of Royal Talbot Rehabilitation Centre is also to be considered as part of this project.

In May 1998, BSA was appointed by the Department of Human Services (Infrastructure Investment Unit) to act as the government’s planning, design and construction consultant, which encompasses the provision of advice from the planning approval and project briefing stages through to the monitoring of construction, and commissioning and operation six months post-occupancy. The life of the redevelopment project is expected to be up to five years, and completion is anticipated around 2003. 13 ANNUAL REPORT 1997 – 98

Oakleigh, Shepparton and Warrnambool police stations

Because it developed the generic Police Facilities Briefing document, BSA is recognised for its expertise in the design and construction of police stations. The new 24-hour Oakleigh police station will be provided through the conversion of the redundant Oakleigh municipal offices. A new building on the existing police station site will be constructed in Shepparton to provide new accommodation for Victoria Police, Community Correctional Services and the Sheriff ’s Office, and a new purpose-built facility is being constructed for Warrnambool 24-hour Police and District Headquarters. The total value for these three projects exceeds $16 million.

Treasury Reserve precinct

The relocation of the Department of Education to Treasury Reserve primarily involved the refurbishment and fit-out of 2 Treasury Place, 33 St Andrews Place and 2A Treasury Place. The overall project, valued at $40 million, involved design and documentation for the refurbishment and fit-out, plus the external restoration and repair of the 2 Treasury Place facade.

Other significant projects include:

■ Ballarat police station and courthouse – project management, supervision and superintendency for the construction of the new complex

■ Supreme Court Library – project management of refurbishment and upgrade

■ Chelsea police station – design, documentation and contract administration for the conversion of the former City of Chelsea municipal offices

■ Gordon Institute Stage 2 – project management, supervision and superintendency for the construction of a new automotive and metal Carrum Downs Primary School. fabrication facility, plus the refurbishment of existing buildings

■ Rural Industries Centre – design, documentation and project management for a training centre, split between two campuses, at Deakin University, Waurn Ponds and the RMIT campus at Dawson Street, Brunswick

■ Werribee Grange Primary School – design, documentation and project management

■ Carrum Downs Primary School – design, documentation and project management

■ Warana Primary School – design, documentation and project management. Warana Primary School. The Domain Tunnel – part of the Melbourne City Link project, which is now 14 66 per cent complete.

CITY LINK Melbourne City Link and Exhibition Street Extension

Construction on the Melbourne City Link project is now approximately 66 per cent complete, with monthly construction expenditure on the project up to $50 million.

The key focus for the project in the remaining implementation period is the combination of the commissioning of the engineering infrastructure The Exhibition Street Extension under construction.

DEPARTMENT OF INFRASTRUCTURE DEPARTMENT (tunnels, etc.), and the establishment of the legal, technical, operational and marketing aspects of tolling. The next 18 months will be particularly challenging.

During 1997–98, the Melbourne City Link Authority has :

■ managed or overseen all aspects of the State’s role in the project

■ negotiated the Exhibition Street Extension partial BOOT agreement for private-sector financing of this key new inner city road

■ managed the drafting of the necessary legislation and its progress through Cabinet and Parliament to enable the Exhibition Street Extension financing

■ substantially completed the acquisition of land and issued the necessary licences to Transurban to enable construction to proceed

■ in conjunction with the project parties, undertaken community consultation on the design aspects of the Western Link

■ commenced work on the development of tolling regulations

■ monitored and ensured that the State’s risk is only subject to the specifics outlined in the Concession Deed

■ maintained constructive working relationships with numerous public bodies and several affected local governments

■ provided technical advice in the development of traffic management plans to address construction impacts on the local road network

■ substantially contributed to public information requirements through the operation of the Melbourne City Link Information Centre

■ generally facilitated the design and construction of the City Link

■ participated in international and national conferences related to leading edge infrastructure delivery.

During 1998-99, the major challenges for the Melbourne City Link Authority are to:

■ continue to facilitate and manage the State’s risk profile and the public interest in one of the world’s most ambitious infrastructure projects

■ complete the regulations and legislative amendments for the introduction and operation of the tolling system 15 ANNUAL REPORT 1997 – 98

■ monitor and facilitate all necessary aspects to do with project commissioning, completion and public acceptance of tolling and road privatisation

■ resolve final land boundaries for the long-term concession leases

■ oversee the completion of the Exhibition Street Extension

■ maintain ongoing monitoring of design and construction of works to completion

■ maintain the State’s risk position in a potentially highly litigious contractual environment

■ pursue opportunities within the framework of the Concession Deed for other vehicle-related uses of the tolling system, including fleet management, drive time and main venue parking

■ contribute to the promotion of the City Link as a leading-edge infrastructure project DOCKLANDS of world significance.

Melbourne Docklands and multipurpose stadium

Through the short-listing of potential developers for Melbourne Docklands and the award of rights for the development of the Docklands Stadium, DOI initiated a review of proposed transport arrangements at Docklands to ensure that the transport system could meet the new demands of the intense development at Docklands.

DOI commenced a traffic and transport study of Docklands late in 1997. Key issues addressed by the study were the efficient operation of the arterial road network in Docklands and the adequacy of public transport services to meet the expected high demand for public transport use. A major outcome of the study has been the development of a package of integrated transport proposals, which provide the basis for long-term land-use/transport planning in Docklands.

An aerial view of the Docklands area. Mirvac’s 16 Yarra Waters Precinct.

The study concentrated on the transport and traffic impacts of Docklands precincts as well as normal through and truck traffic using Footscray Road and intersecting arterial roads, and City Link. The development of Docklands precincts was closely considered in the study, including the Docklands Stadium, to ensure that good access was provided, that transport proposals supported urban design elements and were complementary to precinct development and operation. The operation of the Port of Melbourne and truck movements along Footscray Road also received close attention.

Input to the DOI study involved the coordination of a wide range of interested parties, including the Docklands Authority and Docklands developers, truck operators and drivers, municipalities, road, port and public transport agencies. DOI managed the project and DEPARTMENT OF INFRASTRUCTURE DEPARTMENT oversight was provided by a project steering committee comprising chief executives and senior officers of agencies. Planning input was provided by a working party comprising representatives of the agencies and further contribution was achieved from special interest groups in the study area.

The success of the Docklands project to date can be largely attributable to the open consultation and communication process, which has been encouraged throughout the life of the Docklands Authority. The bidding process was carried out following strict probity procedures, and all bids have been assessed against the published assessment criteria, being: ■ design and amenity ■ integration ■ finance and risk ■ viability ■ other items relevant to the proposal.

The assessment process is assisted by independent experts with national and international experience, prior to recommendations being made by the Docklands Authority to government.

Currently, executed development agreements represent an investment in Melbourne Docklands of $3.2 billion. The first development scheduled for completion will be the stadium. Site works for Mirvac’s Yarra Waters precinct will begin in November 1998 and are expected to be completed in stages over a 10-year period. The Business Park precinct will be developed by two bidders. Negotiations are progressing and it is expected that the precinct will form an integrated mixed-use environment, comprising a theme park and film studio, entertainment and retail, residential and commercial activities and a public waterfront promenade.

Preferred bidder status has been offered for the Victoria Harbour precinct for a $1.2 billion 10-year residential, retail and commercial development proposal, subject to the identification of conditions relating to design, public amenity and risk.

The Batman’s Hill precinct proposals are currently being assessed by the Docklands Authority. Negotiations for the Technology Park precinct were terminated in April 1998 and the Docklands Authority has subsequently called for expressions of interest for the development of a ‘Technoventure’ within that precinct. A proposal for the remainder of the stadium precinct has been submitted for consideration.

The trunk infrastructure contract was announced in February 1998, which includes the design and construction of major road and traffic works, high-quality public space and pedestrian and bicycle links, service utilities and special works. Construction is scheduled to begin before the end of August 1998, for completion prior to the opening of the Docklands Stadium. 17 SPORTS PRECINCT ANNUAL REPORT 1997 – 98

Federation Square and Jolimont project coordination

The Victorian Government is planning to undertake a number of major projects within the Jolimont area bounded by Swanston Street, Flinders Street, Exhibition Street, Melbourne Park and the Yarra River. Each of these projects is being managed by a DOI agency.

The key projects and the managing agencies are: ■ Federation Square managed by OMP ■ Jolimont Rail Rationalisation managed by PTC ■ Exhibition Street Extension managed by VicRoads ■ Swan Street Tram Relocation managed by Yarra Trams.

Land released by the removal of railway assets and buildings along Batman Avenue will be turned into a new eight-hectare parkland, the creation of which will be managed by the City of Melbourne.

The projects will have major benefits to the community by providing a new civic and cultural facility at Federation Square, more open space and park areas, and improved road and public transport access to the central business district.

These projects are being carried out in the same vicinity, necessitating a high degree of coordination between the project teams. While each agency has the responsibility for managing and delivering individual projects, DOI is coordinating the overall progress of all projects and provides a forum for government agencies to resolve critical issues of coordination.

Sports and Entertainment Precinct and relocation of the Batman Avenue tram

DOI has secured an integrated plan, budget and an effective delivery mechanism, with the primary objectives of:

■ securing Melbourne’s premier role in sports and entertainment

■ developing an alternative Batman Avenue tram service displaced by the Exhibition Street extension and which complements the precinct upgrade.

The precinct’s transport and pedestrian infrastructure facilities are under increasing strain with visitor levels projected to increase to nine million a year in 2011, double the 1992 levels. DOI has developed an integrated plan including:

■ upgrades to pedestrian links to better integrate precinct venues and facilities

■ relocating the Batman Avenue tram via the Exhibition Street extension parallel to the rail corridor to Punt Road

■ improved links to rail stations and major city venues and attractions

■ expanded and enhanced taxi and bus parking areas

■ upgraded precinct amenity through landscaping and design improvements.

Through its Strategic Planning and Economic Services Division, DOI has established a management and delivery framework, including the definition of responsibilities for specific projects. 18

Airport link

Travel demand to Melbourne Airport is expected to be satisfied for a number of years by existing transport networks and added City Link capacity. However, there is a need to consider Melbourne’s longer term international attractiveness to both tourists and business. Provision of a range of transport options to the airport is essential to meet the varied needs of airport users. DOI has drafted a report which looks at the transport mode choices available to provide for this growth and concludes that an integrated express airport rail link is the most appropriate solution. A number of alternative corridors are being examined as suitable locations for this rail link.

DEPARTMENT OF INFRASTRUCTURE DEPARTMENT For the integrated express rail service, existing rail infrastructure would be upgraded and a new line constructed from the existing network to the airport. It is envisaged that this will provide a high-quality service with journey times of approximately 20 minutes between the airport and the first city stop. The next stage, through the planning scheme, is to reserve the most suitable corridor, and this will involve a public exhibition phase.

Southbank development

In recent years, Southbank has attracted an estimated $3 billion in development and investment including the Melbourne Exhibition Centre and the Crown casino entertainment complex. The construction of the $2 billion City Link is well advanced; this significant infrastructure development will relieve traffic congestion and create opportunities to improve streetscapes throughout much of Southbank and beyond. Southbank also includes the nationally significant arts precinct area, which, based on latest visitors numbers, attracts an estimated 3.2 million visitors a year.

The redevelopment of land at Southbank for medium Melbourne Exhibition Centre. and high-density residential uses has contributed to the revitalisation of inner city living in Melbourne. Furthermore, the combination of entertainment facilities, leisure opportunities, arts activities, and office and other commercial uses imparts Southbank with an ongoing energy and movement at any time of the day.

As Southbank continues to develop incrementally, one of its greatest challenges will be to achieve a high level of integration between land uses, movement networks and the built and natural environment. DOI has put together a Southbank structure plan as a framework for continuing development of the Southbank area. This has involved work with major stakeholders, such as the City of Melbourne, in order to ensure that the final structure plan was consistent with other activities in the Greater Melbourne area. Increased integration will create a more sustainable and liveable community for Southbank, with clear economic and social benefits. ROAD SYSTEM MANAGEMENT

19 ANNUAL REPORT 1997 – 98

Road development

The Road System Development program is progressively implementing a number of key government strategies:

■ Linking Victoria, rural roads strategy

■ Transporting Melbourne, metropolitan transport strategy

■ Linking Melbourne, the national highway strategy.

Achievements in 1997–98 include:

■ development of transport infrastructure to support efficiency and urban development - extension of the Eastern Freeway to Springvale Road was completed in December 1997

■ development of transport infrastructure in key rural corridors - Ballarat bypass duplication between Woodman Hill at Sunraysia Highway was completed to provide four lanes from Melbourne to north of Ballarat - works on the Calder Highway were completed to achieve mainly freeway conditions from Melbourne to Gisborne in May 1998 - construction began on the Calder Freeway, Black Forest Section

■ provision of an outer ring metropolitan route for transport efficiency - construction of the Metropolitan Ring Road from the Hume Highway to Dalton Road, Thomastown roadis well advanced. system management 20 DEPARTMENT OF INFRASTRUCTURE DEPARTMENT ROADS

In December 1997, the $250 million, seven kilometre Eastern Freeway was opened by the Premier, the Hon. Jeff Kennett. The project was unique because of its integrated facilities designed to address the needs of all road users, including public transport users, cyclists, pedestrians and motorists.

Road system maintenance

The Road System Maintenance program is progressively implementing two key government strategies:-

■ Stitch in Time, maintenance strategy

■ Victoria’s Bridges, the bridge management strategy.

Progress towards specific strategies has included:

■ improved targeting of maintenance achieved through the use of lower cost maintenance treatments. This is illustrated by the Road Maintenance Effectiveness indicator for rural roads, which represents the cost per kilometre to maintain sealed rural roads in smooth condition

■ bridge replacement and rehabilitation projects in accordance with Victoria’s Bridges; more than 20 bridges were replaced focusing on B-double routes to improve road freight efficiency, and a further 40 bridges have undergone rehabilitation works. 21 ANNUAL REPORT 1997 – 98

Traffic and road-use management

Progress with key directions to achieve efficient and orderly movement of road users and road freight include:

■ installation of the VicRoads Drive Time system on both the Eastern and West Gate Freeways, and the extension by 10 kilometres of the existing system on the South Eastern Freeway to Wellington Road

■ completion of bicycle projects on the metropolitan principal bicycle network at St Kilda Road, Studley Road, Flemington Road, Brunswick Road and a further section of the Yan Yean bicycle path. Completion of bicycle facilities on the Breakwater Bridge near Geelong and the Broken Path in Shepparton

■ assessment of all bridges on Victorian roads to ensure they are strong enough to accommodate the proposed increase in mass limits for heavy vehicles. The assessment indicated that 2,169 bridges have adequate capacity, 230 bridges have inadequate capacity and 184 bridges require further testing

■ continued implementation of the Statewide Route Numbering Program with improved direction signing installed on a total of 6,230 kilometres of the State’s major routes (2,820 kilometres in 1997–98)

■ completion of the Statewide Tourist Signing Program on behalf of Tourism Victoria with 76 tourist gateway promotional signs installed around the State

■ improving traffic flow to provide smoother, more reliable TRAFFIC travel on several principal traffic routes by implementing low-to-medium cost initiatives. Routes treated in 1997–98 include Banksia Street/Dora Street, Heidelberg and various intersections on Stud Road

■ establishment of the Victorian Motorcycle Advisory Council to provide strategic policy and program advice on the management and development of motorcycling in Victoria Drive Time, a world standard, sophisticated information system, ■ heavy vehicle freight initiatives implemented include a enables drivers to make informed 12-month trial of B-triples to confirm research that these decisions about traffic routes. are safe and efficient highway vehicles; lifting of regulations prohibiting LPG tankers from using the West Gate Bridge, which provides freight operators with access to an important freight route; and removing travel time restrictions for agricultural vehicles at harvest times

■ implementation of regulations to reduce the incidence of speeding heavy vehicles and improve safety on the open road for all road users. In particular, the regulations are intended to enhance the safety and working conditions of those drivers who are pressured to break the speed limit to meet impossible schedules. 22 DEPARTMENT OF INFRASTRUCTURE DEPARTMENT

The City Circle Tram continues to be well received by residents and tourists alike. It celebrated its fourth anniversary this year and patronage for 1997-98 is expected to reach 3.65 million travellers, a rise of 10.6 per cent over last year. PUBLIC TRANSPORT

23 ANNUAL REPORT 1997 – 98

Corporatisation of the Public Transport Corporation and franchising the businesses

The substantial effort and progress made in the five-year reform program of the public transport sector has received favourable comment from the Victorian Auditor-General in his Parliamentary Report on Public Transport Reforms, Moving from a System to a Service. The report concludes that the public transport reform program has met all of its objectives and that in particular it has:

■ achieved ongoing savings of at least $245 million a year

■ established a sound foundation for the future long-term viability of public transport in Victoria

■ delivered progressive improvement in the reliability and punctuality of all scheduled train and tram services

■ led to increased patronage levels

■ improved safety on trains and trams through initiatives such as better security lighting, video surveillance, premium stations and cleanliness of vehicles. public transport 24 Improved safety at stations through video surveillance for those using school buses. DEPARTMENT OF INFRASTRUCTURE DEPARTMENT

REFORMS The report also notes that:

The PTC deserves specific recognition for its management of a wide range of reform actions under the program which led to attainment of the challenging and significant financial objective set by the Government. In line with the Government’s stated intention at the start of the program, this achievement established a sound foundation for the future long-term viability of public transport in Victoria.

In 1996, the Government announced its intention to restructure the PTC into independent businesses, privatise some activities and contract out maintenance.

In 1997–98, the PTC was restructured internally into separate businesses: MetTrain (two), MetTram (two), and V/Line Passenger, as a precursor to privatisation. From 1 July 1998, these businesses will be separate corporations. In April the Government announced 12 guarantees for public transport passengers to protect rights and ensure service quality after privatisation. These guarantees will be incorporated into the contractual arrangements for the franchise operators.

Preparations for franchising are being managed by the Transport Reform Unit in the Department of Treasury and Finance. DOI and the PTC have worked closely with the Transport Reform Unit in the implementation of the program, while keeping effort focused on the core functions of delivering quality train and tram services at least cost to government.

Bus contracts

The bus contract network of route and free school bus services is a large and diverse component of public transport services provided in Victoria.

The bus services under contract to DOI total $300 million annually in contract payments and utilise in excess of 3,400 buses.

In 1997–98, there were fundamental changes in the provision of bus services in Victoria. The more noteworthy changes include:

■ privatisation of the remaining government bus operation through a 10-year franchise agreement with Melbourne Bus Link Pty Ltd resulting in an annual saving of $2.5 million a year compared with the former Met Bus operation. This made Victoria the first State to have a fully privatised bus network 25 ANNUAL REPORT 1997 – 98

■ the completion of new 10-year contracts with metropolitan route service operators based on industry best practice benchmarks, resulting in contract savings, service benefits and a new direction in transport management. Similar arrangements are well advanced for country and school bus operators

■ new contracts for the highly successful NightRider bus services, resulting in a 7 per cent real reduction in the cost of this service

■ the completion of the specification (stage one) of a new contract administration system to manage the new contracts

■ the delivery of more effective route and school services through ongoing reviews

■ moving to a new system of bus operator accreditation for Victoria.

Metropolitan bus services

New 10-year service agreements were signed with all metropolitan bus operators (effective from 1 January 1998) heralding a new direction in the provision of bus services in Victoria. The new contracts are characterised by:

■ independent benchmarking of unit costs and performance standards, resulting in efficiency gains being built into contract prices over the franchise period

■ patronage incentive arrangements, whereby contract payments SERVICE are directly linked to passengers carried

■ a partnering relationship between DOI and operators whereby An ultra-low-floor bus. DOI’s focus is on the delivery of agreed outputs without directing day-to-day operations

■ annual savings averaging $10 million compared to the former contracts. An opportunity was taken to rationalise services during the contract renegotiation process resulting in a major operator not being re-engaged as his services could be absorbed by other operators at reduced costs

■ a commitment to replace 650 buses over the 10-year period; that is, a 50 per cent turnover of the current fleet. These replacements are programmed into each contract and provide each operator (and the vehicle manufacturing industry) with some stability in planning future vehicle replacements. The replacements will essentially be ultra-low-floor vehicles to provide improved access for elderly and disabled passengers, and will ensure that a modern and efficient service is provided. As a result, the fleet will have an average age of eight years in line with accepted best practice.

Melbourne Bus Link

Melbourne Bus Link operates under the same 10-year service contract arrangement as concluded with all other private metropolitan bus operators, resulting in significant savings. This follows the earlier successful franchising of part of the government bus operations to the National Bus Company in 1993, which also resulted in improved services at lower cost to government. 26

Country bus services

Following the successful negotiation of the new metropolitan contract arrangements, discussions began with country route operators for new contracts. The country arrangements will include similar contract principles of service franchise and performance requirements as the metropolitan arrangements. The financial gains arising from patronage growth and cost efficiencies will be shared between operators and government.

School bus services

School bus contract arrangements are largely unchanged from the early 1950s and, in 1997–98,

DEPARTMENT OF INFRASTRUCTURE DEPARTMENT were the subject of a major review. School bus services are governed by eligibility requirements established by the Department of Education and are, by nature, many and varied. There are some 630 contracted operators spanning more than 1,600 individual contracts. Contract negotiations commenced in 1997–98 and will continue into the 1998–99 financial year.

During the 1997–98 school year, reviews were conducted at more than 40 school bus centres Statewide to ensure services are operating efficiently and in accordance with Department of Education guidelines. Reviews were conducted in consultation with schools to ensure revised arrangements continue to cater adequately for eligible travellers.

As a result of these reviews and continued service monitoring, 22 school bus contracts were terminated, resulting in annual efficiency savings of $1 million. This brings the number of school bus service contracts terminated since 1990 to 235. The saving from these rationalisations exceeds $8 million annually when compared to contract payment levels of 1989-90.

During the year, six additional services were introduced to cater for increased numbers of eligible travellers at a total annual cost of $189,000.

NightRider

NightRider services were established in 1993 and have been a great success in providing a much needed early morning transport option predominantly for young people on Saturday and Sunday mornings. The services have proved to be safe, reliable and efficient with significant passenger growth achieved since 1993.

In 1997, DOI tendered these services for a further two years and achieved a 7 per cent real reduction in the contract prices, plus additional service options, including ultra-low-floor vehicles for almost 50 per cent of the fleet.

New contract administration system

The new bus transport contracts require a new contract administration system that is far more responsive, analytical and output focused. In recognition of this need the development of an administration system began in 1997–98.

A major focus of activity has been to ensure the provision of improved management information and to examine the wider contract administration needs of other transport contracts, including train and tram services and the general contract administration needs of DOI. 27 ANNUAL REPORT 1997 – 98

Bus operator accreditation

In conjunction with the Public Transport Safety Division, administrative arrangements were developed to allow for the introduction and regulation of a new system of bus operator accreditation for road transport passenger services in Victoria.

The proposed regulations prescribe certain procedures and standards required by the Public Transport Competition Act 1995, which provides for the removal of regulatory restrictions on competition in the road passenger public transport sector.

The objective of the regulations is to maintain and improve standards of passenger and public safety and efficiency in the road transport sector. The key elements of bus operator accreditation relate to:

■ provision and management of passenger service operations

■ safety of passengers and the public

■ service to passengers

■ vehicles and equipment, including their design, service, maintenance and condition.

Approximately 1,300 existing operators, with 5,500 vehicles, will be required to hold an approved accreditation when the regulations are introduced. Work on this issue in 1997–98 resulted in the preparation of an RIS identifying the likely impacts of the proposed regulations and their costs and benefits. Moorabbin, the PTC’s 52nd premium station, being opened by the Minister for Transport, the Hon. Robin Cooper. Improved public transport performance

Three major initiatives undertaken in 1997–98 have had an effect on the metropolitan train and tram businesses, which will significantly change the way these services are operated in the future. The stabling of trains in the Jolimont rail yards ceased and all trains are now housed at a number of key locations in the suburbs. The metropolitan train and tram businesses were split into four separate entities and the traditional selling of tickets on trams by conductors ceased.

In particular, the temporary closure of some tracks for relocation in the Jolimont rail yards and the closure of some platforms at Flinders Street Station for refurbishment while maintaining full train services has challenged the ability to run services on time and cope with the impact on morale of PTC staff awaiting the perceived uncertainty of privatisation. The challenges have been met and passenger services have continued to operate effectively.

It is significant that the metropolitan train peak-period punctuality target for the year was exceeded even with the service constraints caused by the Federation Square and Flinders Street Station upgrading projects.

The PTC’s 52nd premium station, Moorabbin (the first of an additional 10 premium stations), was officially opened. All 61 premium stations will be operating by mid-1999. 28

Easygoing

A package of accessible public transport services and information entitled ‘Easygoing’ was launched during March 1998. The package is designed to help make public transport accessible for all Victorians and it brings together a range of services and facilities branded under one distinctive name. It is aimed at a range of ‘special needs’ users, including people with disabilities, restricted mobility, sight and hearing-impaired persons, the elderly and parents with prams. The package includes a series of station access guides, the first of their DEPARTMENT OF INFRASTRUCTURE DEPARTMENT kind in Australia. They detail the full range of accessible services, such as lifts, ramps, disabled parking facilities and toilet facilities, tactile tiles and hearing induction loops available on each of Melbourne’s metropolitan rail lines.

The Easygoing package is designed to make public transport accessible to all Victorians.

As part of the Easygoing package, tactile tiles help the vision-impaired at tram stops. 29 ANNUAL REPORT 1997 – 98

Automated ticketing system

OneLink has now completed the rollout of automated ticketing system equipment on all railway stations and across the tram network. All bus depots have been equipped, including the bus fleet, with the exception of three companies, and this will be completed once additional functionality for the delivery of the bus system is developed by OneLink.

Public acceptance has steadily increased as people become more familiar with the system and initial technical problems have been resolved.

Commercial development of transport property

During 1997–98, significant progress has been made with commercial development projects on PTC/VicTrack property. Developments have been completed at Chapel Street, Prahran, South Yarra railway station, and Moorabbin railway station.

A preferred developer has been appointed for a $13 million development at Boronia railway station. Agreements have been signed for a $30 million cinema/retail complex at Frankston railway station and construction is expected to start in the coming months. Negotiations are well advanced with preferred developers for projects at Sunbury ($20 million), East Camberwell 98 – 1997 ($3 million) and Diamond Creek ($5-10 million).

Discussions continued for proposed developments at Chapel Street West and Eltham railway stations. Consideration is being given to possible developments at Elsternwick and Camberwell railway stations.

The automated ticketing system.

V/Line Freight and VicTrack

Two new State business corporations – V/Line Freight Corporation and Victorian Rail Track Corporation (VicTrack) – began operating as separate corporations on 1 July 1997. Rail freight haulage operations were transferred to V/Line Freight on 1 July 1997. Management, maintenance and selling of access to country infrastructure was transferred to VicTrack.

Victoria has agreed to the establishment of the Australian Rail Track Corporation (ARTC) to manage the interstate track. It is proposed that the Victorian interstate track will be leased to ARTC for five years. Ownership will remain with VicTrack.

Improved efficiencies, competitive freight services, less pressure on road freight and opportunities for private owners to operate competitively in interstate markets are expected to be benefits achieved in the first few years. 30 NATIONAL National transport agenda

Sale of National Rail

DOI, as representative of the Victorian shareholder, entered into discussions with other shareholders regarding the transfer of assets to National Rail in the light of the Federal Government’s decision to sell National Rail.

High-speed train

DOI had observer status on a combined Commonwealth/New South Wales/Australian Capital Territory Governments working party examining the feasibility of and options for high-speed DEPARTMENT OF INFRASTRUCTURE DEPARTMENT rail services between Sydney and Canberra. In this role, DOI assisted in the assessment of expressions of interest for the service.

DOI’s participation was to ensure that technological solutions selected would be capable of extension to Melbourne.

Accessibility issues

DOI represented Victoria on the Federal Attorney General’s RIS Steering Committee for the development of Standards under the Disability Discrimination Act 1992.

The RIS process has included the evaluation of costs and benefits of the proposed Standards. The RIS document is anticipated to be released (by the Commonwealth) for public comment early in the 1998-99 year. TRANSPORT SAFETY AND REGULATION

31 ANNUAL REPORT 1997 – 98

Public transport safety and regulation

Transport safety and regulation is a key component of the transport reform strategy. In a multi-operator private-sector environment, risk must be identified and managed in a way that ensures both safety and efficiency. Victoria has adopted co-regulation as the most effective means of introducing ‘best practice’ management techniques.

Public transport safety regulation has shifted from the prescriptive regulatory approach involving licensing to an accreditation system, which requires operators to comply with performance standards and relies on audit rather than policing.

GHD/Transmark were commissioned to undertake a review of the application and effectiveness of DOI’s accreditation model (including the adequacy of resource). An implementation of recommendations is planned for 1998–99. transport safety and regulation 32

School bus safety

A coordinator for school bus safety was appointed with a brief to identify the full range of programs and activities undertaken in relation to safe travel by young people on school buses.

Rail safety

A Regulatory Impact Statement (RIS) was released in May 1998 to facilitate public

School Bus Safety Coordinator comment on proposed Transport (Rail Safety) Regulations. Public seminars were Stella O’Donnell. conducted during June and it is anticipated that, after consideration by the Minister

DEPARTMENT OF INFRASTRUCTURE DEPARTMENT for Transport, the Regulations will come into force in the 1998-99 financial year. SAFETY Audit

DOI undertook 97 audits of rail organisations (including interstate operators) operating in Victoria during the 1997–98 financial year. The focus of audit in the latter part of the financial year was on the PTC’s business units to ensure that accreditation could be achieved prior to 1 July 1998, in line with the Government’s time frame for privatisation.

A series of special audits was also undertaken throughout the year, reviewing train examination and preparation procedures and the operational safety management system ‘Section Authority’, introduced by the PTC and the Victorian Rail Track Corporation over the past few years. During the year, DOI also identified and monitored the incidence of load shifts among rail freight carriers with the result that load shifts have been addressed by the rail freight industry. Consequently, the incidence of load shifts has been reduced.

Accreditation granted 1997–98

DOI received 37 applications for rail accreditation throughout the year. All applications have been processed and 24 organisations achieved accreditation. Of these, five were granted accreditation through mutual recognition of interstate operators.

Development of databases

DOI has been developing two databases to complement its operations. One database will record incident/accident data in both the bus and rail sectors, to detect and analyse adverse safety trends and produce analytical reports based on geographical and activity centres. It will be the National Rail Safety Database.

A second database is being developed to assist planning and conducting safety audits, including the facility to develop audit programs and update audit data. It will also enable staff to remotely update the database and provide those audited with audit reports on location.

Quality certification

During the 1997–98 financial year, a management system was established in accordance with AS/NZS ISO. 9002:1994. It was audited on 20 May 1998 by Bureau Veritas Quality International, and was certified that its management system is in accordance with the above standard. Victoria is the only State in which the rail safety regulator is quality certified. 33 ANNUAL REPORT 1997 – 98

Walksafe is an innovative pedestrian safety program which involves coordinated engineering, education, enforcement and publicity to address unsafe pedestrian activity and high-risk locations. The program is the first of its type in Australia.

Road safety

The Victorian Government’s road safety strategy – Safety First – provided the direction for VicRoads’ Road Safety Program in 1997–98.

The program generates a wide range of outputs aimed to improve the safety of roads, vehicles and road users. High returns on investment have been proven for activities such as treatment of hazardous locations (black spots and black lengths). In addition, significant improvements in road infrastructure and the gradual upgrading of the motor vehicle fleet have contributed to reductions in the road toll. The following activities during the year are highlighted:

■ federal and State funding was allocated to the treatment of 140 black spot and black length sites with a combined predicted expenditure of $12.4 million

■ as part of a two-year, $3 million annual rolling program to improve railway level crossing safety, 29 sites were approved for treatment and work is under way or has been completed on 20 of these

■ the ‘Walksafe’ pedestrian safety program comprising engineering, education and enforcement activities in the municipality of Stonnington

■ the Drugs and Driving Task Force was formed to plan the implementation of the Government’s response to the recommendations to the Parliamentary Road Safety Committee’s report on Drugs and Road Safety; the overall program will include:

- legislative provisions for testing procedures

- information and education programs

- research and the establishment of a centralised database on drug driving.

Legislation was introduced clarifying the responsibilities of road users in association with the management of stock on roads throughout Victoria. 34

Registration and licensing

Registration and licensing strategies are aimed to provide effective and efficient driver licensing and vehicle registration, revenue collection and driver and vehicle information services.

Projects which have been completed include :

■ provision for the payment of a range of registration and licensing transactions through the Victorian Government’s electronic service delivery network

■ the establishment of a centralised rural telephone call centre, located at Ballarat, to service registration and licensing enquiries received from customers in rural Victoria

■

DEPARTMENT OF INFRASTRUCTURE DEPARTMENT an upgrade to the technology used for servicing registration and licensing enquiries received by the metropolitan telephone call centre

■ the implementation of transaction pricing from 1 July 1998 for all internal service providers.

VicRoads is now ready for the implementation registration component of the National Exchange of Vehicle and Driver Information System, which will come online in September 1998.

Austroads performance measures provide a benchmark for the performance of VicRoads as the manager of registration and licensing services in comparison with other State road authorities.

The following graph reports on the cost of maintaining driver licence and vehicle registration records for each State. The graph indicates VicRoads has the lowest unit cost.

Taxi and tow-truck initiatives

Victoria, through the amalgamation of taxi and tow-truck administration, has been a leader in reform; a number of other States have mirrored the Victorian approach:

■ a review of the regulated accident towing fee for tow trucks commenced and is scheduled for completion by November 1998

■ the Taxi Directorate has continued to take a lead role in the coordination of intermodal activities at major events such as the Formula One Grand Prix, the Motorcycle Grand Prix at Phillip Island, the Spring Racing Carnival and the Bledisloe Cup

■ the Taxi Directorate conducted a four-month feasibility study of camera surveillance technology for use in taxi cabs as a possible means to enhance driver and passenger safety; the trial involved rural, urban and metropolitan taxi operators

■ the Taxi Directorate has continued its support of, and involvement with, the Melbourne City Council in the Safe Taxi Ranks scheme

■ a Taxi Driver of the Year Award program was initiated to recognise service excellence by taxi drivers. Awards were made to the Metropolitan and Rural Taxi Driver of the Year (1997), and eight other drivers received ‘finalist’ certificates

■ the Taxi Directorate continued to convene the Taxi Driver Safety Committee, which was established in 1995 to advise the Minister for Roads and Ports on options and strategies to enhance the safety of taxi drivers. PLANNING, LOCAL GOVERNMENT AND HERITAGE

35 ANNUAL REPORT 1997 – 98

Local government

Performance indicators

In February 1998, DOI launched the key performance indicators program for local government in Victoria. The aim of the program is to improve the performance of councils in Victoria in relation to the executive management functions and in their use of resources to provide high-quality services. The key performance indicators were developed at two levels by a steering committee of State and local government representatives and were pilot-tested in 17 councils. An information kit, which includes a data input schedule on computer disk, was produced and planningprovided to all councils. local government and heritage 36

PERFORMANCE Beginning this year, each council will set its own performance targets against 29 annual plan indicators, which cover three critical areas: community satisfaction, financial performance and operating costs. Subsequently, results against each target will be audited and reported in a performance statement to be included in the council’s annual report. These measures help councils to increase their accountability to the community and key stakeholders.

Councils will also report against 47 comparative indicators, focusing on unit cost and quality measures for specific service areas. These measures will be incorporated into a local government sector database to assist in identifying industry best practice.

Customer satisfaction measurement program DEPARTMENT OF INFRASTRUCTURE DEPARTMENT An integral and unique component of the key performance indicators program is the annual community satisfaction measurement program. Throughout February and March this year, around 30,000 residents and ratepayers across the State were surveyed to establish baseline information for community satisfaction. This is one of the largest surveys of council residents in recent history. Survey results were provided to councils individually at the end of April 1998.

Rate capping

In September 1997, the Government announced that rate capping for municipal councils would be lifted from the 1998-99 financial year, returning full responsibility and accountability for the setting of rates and charges to councils. The lifting of rate capping was conditional on councils establishing and meeting performance and financial-related targets and stepping up reporting procedures for council business enterprises. These conditions will be implemented during 1998-99 through:

■ the key performance indicators program, which requires councils to establish targets for designated annual plan indicators and report against these annually and also to report against designated comparative indicators allowing these to be used to benchmark the cost and quality of council services

■ the publication of segmented financial reports for individual council business units, focusing on financial performance.

Councils seeking to increase rates and charges in 1998-99 are also required to justify the increases and to demonstrate that communities will receive value for money as a consequence of any increase in rates and charges.

The legislation enabling rate capping has not been altered and the Government retains the capacity to reapply rate caps if individual councils fail to perform adequately, or if they increase rates significantly without justification. The Government’s preferred position is that rate capping will not be reintroduced, rather that there be a closer working partnership with councils to ensure that ratepayers receive value-for-money services.

Compulsory Competitive Tendering

1996-97 was the first 50 per cent target year for Compulsory Competitive Tendering (CCT). Overall, $1.45 billion worth of local government work was tendered in the year. This represented 56 per cent of the aggregate operating expenditure of Victorian councils. 37 ANNUAL REPORT 1997 – 98

More than 55 per cent of the work tendered by councils was won by external contractors: nearly 33 per cent was retained by in-house provider teams. More than 25 councils reached CCT targets of 60-70 per cent; six exceeded 70 per cent; 22 councils did not make the 50 per cent target. Delays in the tendering process for major contracts, or in their commencement, were a common theme in the written explanations put forward by these councils. All councils advised they had programs in place designed to allow them to reach the 50 per cent target in 1997–98. COMPETITION DOI is working with the Municipal Association of Victoria to develop a database on councils’ CCT activities. The information from the database will benefit all participants by supporting policy development, local government advocacy and planning for the next major round of competitive tendering.

DOI is also working on a business unit reporting study to assist councils to improve accounting and reporting for business activities. An essential component of the study is to encourage councils to review the structure of their business activities so that accounting and reporting systems are based on a clear client/provider split.

National Competition Policy

The National Competition Policy (NCP) requires that councils observe competitively neutral pricing principles where they have significant business activities, submit in-house bids or charge for services. The principles require them to include a rate of return on the assets owned and used to provide a service, and to offset any tax advantages they may have as councils.

Councils follow the Department of Treasury and Finance’s guidelines for competitively neutral pricing and are further assisted by draft guidelines issued specifically for councils by DOI in September 1997. The draft guidelines resulted from extensive consultation with councils in a series of regional and metropolitan seminars.

The vexed issue of how councils should treat redundancy costs in evaluating in-house and external tenders has yet to be resolved. Policy commitment on the treatment of redundancy costs will flow through into a revision of the Victorian Local Government Code of Tendering and final guidelines for competitively neutral pricing.

Councils’ local laws must pass the ‘competition test’; that is, not restrict competition unless it can be demonstrated first, that the benefits of the restriction to the community outweigh the costs and, second, that the objectives of the local law can only be achieved by restricting competition. Councils have until the end of June 1999 to remove any inappropriate restrictions. This is not a long lead time as reviews can be both lengthy and resource intensive.

DOI issued guidelines to help councils to review their local laws in May 1998. The guidelines were the subject of well-attended regional and metropolitan seminars in the same month.

The Government has agreed in principle that local government should share in the competition payments made by the Commonwealth to Victoria, and a decision on implementation is anticipated soon. Payments to councils will be dependent on compliance with NCP objectives and will reflect, at least in part, a per capita basis for distribution similar to the way in which payments to the States are made by the Commonwealth. 3838 Bush’s Lane, Bendigo.

Online 2001

Three councils have joined the Electronic Service Delivery ‘Maxi’ Project – Manningham, Moira and Melbourne. This initiative is part of the Government’s Victoria 21 Strategy, which will provide all government services on line by the year 2001.

Infrastructure asset management in local government

During 1997, DOI commissioned a study to:

■ define the long-term infrastructure expenditure requirements to maintain and renew the existing infrastructure asset portfolio of local government DEPARTMENT OF INFRASTRUCTURE DEPARTMENT ■ determine current spending levels on maintaining and renewing existing infrastructure

■ define consequent spending gaps and recommend strategies to ensure that required expenditure levels can be achieved.

Consultants were appointed and a comprehensive methodology was developed, based around an extensive council survey. The Infrastructure Study Report contains a number of key recommendations regarding the future asset renewal requirements for Victorian councils as well as the future management effort required to meet the challenge.

The Report produces, for the first time, an overall picture of the size, condition and value of Victoria’s local government infrastructure, estimating a current replacement cost of $23.3 billion for council roads, bridges, footpaths, drains, parks, recreation facilities and public buildings.

Eel Hole Creek, Churchill.

The Boardwalk at Lake Weeroona, Bendigo. Kensington Banks already has a great sense of community. 39 ANNUAL REPORT 1997 – 98 Statutory planning

Residential development

Land-related policy development is not static and the Government is committed to a program of continual monitoring, consultation and enhancement of land-use policy to ensure its relevance to both present and future community needs.

The Government’s aim is to foster new residential development, which provides wider housing and locational choices to meet social need and lifestyle preferences, while at the same time taking advantage of existing services.

In 1995, the Good Design Guide for Medium-Density Housing was introduced to promote well-designed developments in the context of the objectives. In 1997, the Victoria Planning Provisions were introduced, giving local government new scope to use strategic planning and local policies to shape medium-density development by taking into account local circumstances.

The Action Plan for medium-density housing and residential development, launched in April 1998, introduced five initiatives to give property owners and local communities greater involvement in local planning outcomes and clarify local government accountability for achievement of these outcomes. The five-point package of initiatives also aims to more effectively implement some reforms already set in place, particularly with the introduction of the new Victoria Planning Provisions. Medium-density housing, St Kilda.

The five initiatives are:

■ upgrading the site analysis requirements of the Good Design Guide, and instituting a formal process of local government approval of site analyses before applications are considered

■ encouraging councils to make use of vegetation and landscape controls to control the removal of trees

■ formation of a Standing Advisory Committee to advise on local variations to the Good Design Guide

■ encouragement of neighbourhood agreements, which can specify design outcomes

■ an overshadowing and overlooking review to research the impacts on neighbours of new residential developments.

Four new publications were widely distributed to support the Action Plan and a freecall telephone line was established to provide two-way information and feedback on planning in residential areas. The Action Plan will be extended in 1998-99 by:

■ comprehensive training, education and communications, focusing on the upgrade of skills in designing and assessing medium-density housing developments

■ involvement of the community, local government, industry and professional groups in higher quality designs and more effective assessment processes for medium-density housing

■ evaluating the impact of the Action Plan. 40

Performance monitoring and review

A national project to consider the development of indicators for measuring the performance of State planning systems has been completed. The review concluded that the primary indicator to give an indicative comparison between States is the total time taken to decide upon applications. Further benchmarking between States has been left to the initiative of the individual agencies, and Victoria has begun discussions with New South Wales for this purpose.

In addition to the national project, DOI has been pursuing a range of performance indicators for the Victorian system, the first stage of which has been published in municipal facts sheets. These include council decisions on medium-density housing, number of decisions taken to

DEPARTMENT OF INFRASTRUCTURE DEPARTMENT appeal, demolition and building construction and core demographic information. The next stages will involve indicators on the implementation of the State and local planning frameworks, real costs of planning services and the impact of charges for various users of the planning system.

Planning reform progress

The process of review and implementation of the new schemes has continued at a steady pace. All Victorian municipalities have prepared and exhibited new-format planning schemes. To date, 50 new-format schemes (61 per cent) have been considered by an independent panel and advisory committee.

The Victoria Planning Provisions were significantly improved in October 1997 to deliver enhancements generated from the Victoria Planning Provisions Advisory Committee and the experience gained in developing new schemes.

A significant program for the digitisation of planning scheme maps is in operation, which aims to deliver all new-format planning scheme maps in a digitised format, enabling the linking of planning scheme map data into other electronic information systems to be delivered by the Government.

Development information

In 1998, DOI released a series of publications and presented seminars, which provided summaries of the most important data from the 1996 census for Victoria and its local government areas. These publications were: Victoria in Fact 1996 Ð Interim Report, Melbourne in Fact 1996 and Regional Victoria in Fact 1996. DOI stimulated and led the debate about urban change with a paper From Doughnut City to Café Society, which analysed recent demographic trends and cultural drivers of change; to date about 3,000 copies of From Doughnut City to Café Society have been distributed. In April and May 1998, DOI organised two seminars (‘Picture of Melbourne’) on the factors driving urban change in Melbourne, which were attended by more than 300 people. DOI publishes the newsletters, Victorian Population Bulletin and Research Matters (which is distributed to 1,700 people) on a regular basis. DOI will shortly publish Towns in Time, which provides information about towns with populations of more than 200 people in regional Victoria, drawn from the four censuses up to 1996. 41 ANNUAL REPORT 1997 – 98

Environment Effects Statements

Advice on the need for assessment under the Environment Effects Act 1978 was received in relation to 25 proposals. Environment Effects Statements (EESs) were deemed necessary in five cases. DOI coordinated the EES process for 17 projects, five of which were completed and put on exhibition. Independent panels were appointed to consider 10 EESs and related submissions. Minister’s assessments were issued for six projects following the receipt of panel reports.

Pride of Place

A practical illustration of urban design initiatives was provided in 1997–98 through the Pride of Place program ($3.2 million), launched in August 1997. More than 150 applications, requesting $11 million, were received in support of projects with a total value of $30–40 million.

Funds were allocated to 73 projects, 70 per cent of which are in regional Victoria and the remaining in metropolitan Melbourne. The funded projects included urban design framework studies, design advisers, heritage studies, design development and a range of improvement projects that include streetscape enhancements, the creation of new public spaces and public artworks.

The Lake Sambell project at Beechworth in Indigo Shire is a major urban initiative sponsored through the Pride of Place program. 42 Serviceton Railway Station – a GHRP project.

Heritage

Heritage Victoria continues to develop strong partnerships with local government on the understanding that the best heritage protection will be delivered at the local level, where community support is strongest. Over the past year, the Heritage Advisory Service was expanded and more than 55 per cent of councils have appointed a heritage adviser. Over the next 12 months, councils will be strongly encouraged to identify places of heritage importance in planning schemes.

In line with the provisions of the Victorian Heritage Act, the Government

DEPARTMENT OF INFRASTRUCTURE DEPARTMENT Building Register was incorporated into the Victorian Heritage Register in May 1998. A single register will ensure the same permits apply, regardless of the ownership of significant structures. It will reduce confusion and duplication and simplify the management of the State’s heritage.

During 1997–98, in excess of $3 million was allocated to 49 projects under the Government Heritage Restoration Program (GHRP). This year marked the end of GHRP, under which a total of $16 million was allocated to 213 projects across Victoria since the establishment of the program in 1994.

The Minister for Planning and Local Government, the Hon. Robert Maclellan at the Government Heritage Restoration Program Exhibition Heathcote Hospital – a GHRP project. at Parliament House in September 1997.

The former State Nursery Office building at Creswick was restored – a GHRP project. 43 ANNUAL REPORT 1997 – 98

Land monitoring

The Government Land Monitor (GLM) ensures that real estate transactions undertaken by government departments and agencies comply with the government policy for the purchase, compulsory acquisition and sale of land. During 1997–98, GLM processed 760 property submissions for the purchase and sale of land, dealt with about 300 property inquiries and attended around 200 valuation meetings related to those transactions.

Participants in Building Policy’s series of four industry seminars. Building policy

DOI has continued its involvement with peak industry groups at State and national level. This included close involvement in the drafting of the Australian Procurement and Construction Council’s Construct Australia – Building a Better Construction Industry in Australia, and a series of four industry seminars on integrating risk management with facilities management in partnership with the Facilities Management Association of Australia. It has established and chairs the Contracts Advisory Panel, which facilitates the adoption of standard forms of contract throughout the public sector. In addition, it continued development of the Construction Supplier Register, and has published Making Choices: Qualification Criteria for Assessing Building and Construction Industry Suppliers.

DOI will continue its strategic alliance with the Department of Treasury and Finance in implementing a two-year asset management program for the Victorian public sector. This includes the release of the revised Asset Management Series. A revised Code of Practice for the Building and Construction Industry (incorporating the National Code of Practice) will be released late in 1998.

Following extensive consultation with government departments, DOI will produce a Statement of Intent in relation to bringing Victorian government-owned or controlled buildings into compliance with the Commonwealth Disability Discrimination Act.

Panels

Independent panels are appointed to consider planning scheme amendments, EESs and planning permits referred to the Minister for decision. The panels are also providing consultation for policy review, both generally and for specific projects through the appointments of advisory committees.

During the year, 195 panels and advisory committees were appointed. A major objective of the panels has been to facilitate the planning reform program by completing all planning panel hearings for the new-format planning schemes by the end of the 1998 calendar year. To date, 58 out of the 78 new councils have had a panel appointed to consider their scheme. This began in October 1997 when panels were appointed to hear and consider the five pilot schemes, and it will conclude toward the end of the year with the remaining councils. 44

International affiliations

The Minister for Planning and Local Government continued to represent Melbourne as member of the Metropolis Association, an international forum of political, administrative and technical decision-makers from the world’s major cities. The Minister is Executive Vice-President of Metropolis and chairs one of the four standing commissions of Metropolis which deals with the impact of airports on metropolitan development. DOI is coordinating the work through a working group comprising representatives from State and federal government departments, the The Minister for Planning and Local Government, the Hon. City of Melbourne, and the Manager of Melbourne Airport, and is assisted by the Robert Maclellan, addresses the Tokyo Metropolitan Government. The commission’s work is acknowledged as a

DEPARTMENT OF INFRASTRUCTURE DEPARTMENT first Airports Commission Meeting major international study and the report will form one of four key themes at the of the Metropolis Association, held next Metropolis Congress (Barcelona, March 1999). in Melbourne in September 1997.

Under the Metropolis Technical Assistance Scheme, DOI assisted the Guangzhou Municipal Government in addressing urgent traffic management issues, completing Phase II of the project in November 1997.

The demand from overseas for training seminars has continued. Most request were from Asian countries, but with an increasing interest from South Africa.

The Metropolis Association Board of Directors Meeting in Seoul, South Korea April 1998, is addressed by DOI Deputy Secretary Jon Hickman.

Participants in the first Airports Commission Meeting of the Metropolis Association, held in Melbourne in September 1997. CREATING A VALUE-ADDING ORGANISATION

45 ANNUAL REPORT 1997 – 98

Regionalisation

When DOI was first established, only VicRoads had a significant regional presence. During the second half of 1997 and early 1998, 60 DOI staff relocated to the VicRoads regional office network. Co-located DOI staff are now delivering planning, building, heritage, public transport and local government services to the public, the development industry and councils. Staff are now co-located in five country and two metropolitan offices.

Decision-making has been decentralised to our regional offices and this, together with improved inter-agency coordination and a cooperative resolution of local issues, is already delivering speedier decisions and a better service to our ‘customers’. Second-order benefits of shared common support services add to the value of shared information and joint planning and projectcreating work within regional offices. a value- adding organisation 46 FINANCIAL The regional location of seven local government support managers is contributing to the development of stronger relationships with local government and an enhanced ability to both support councils and identify key local issues.

Co-location has already contributed to the integration of infrastructure activities, including strategic transport and land-use planning, building and heritage policy development and services and local government support. The benefits of co-location with VicRoads include the sharing of common support services, shared information about regional issues and stakeholders, joint study teams, project meetings and improved responses to clients on issues requiring an integrated response.

DEPARTMENT OF INFRASTRUCTURE DEPARTMENT The country regions have a key role in the development of the Government’s Rural and Regional Strategy. The metropolitan regions are developing regional development frameworks and have established regional forums of government departments and agencies to share information and discuss cross-government issues.

The impact of the regionalisation exercise on service delivery and the further integration of portfolio activities is being monitored and will be evaluated towards the end of 1998. To date, it has been an initiative which has demonstrated its value to the portfolio within a short time frame.

Business systems

Single financial system

A single financial system has been implemented and will shortly be able to give desktop access to managers of financial and non-financial information to support output-oriented management within a hierarchical executive information system.

Oracle 10.7 has been successfully implemented, together with a range of financial system enhancements which have facilitated the distribution of coherent and timely financial reporting.

With the integration of other feeder systems and consolidation within the system, significant improvements in financial reporting, accounting transaction processing and data processing functions (incorporating costing) have been engineered.

The move to a graphical user interface version of DOI’s financial system and the accompanying training have provided easy access to vital information for managers. The introduction of the electronic transmittal of payments through the bank and remittance advices over the Internet has provided the first steps towards Online 2001.

Future work planned for 1998-99 includes an electronic approvals system which, when linked to the electronic payments processes, provides a paperless purchasing and payments process. 47 ANNUAL REPORT 1997 – 98

Management information reporting system

Building on the implementation of a single financial system and standardised financial reporting is the implementation of a hierarchical executive reporting system.

This system will report the key financial indicators by business unit and non-financial output performance targets. It will integrate data from a range of systems including Oracle, HR/Payroll, contract management systems, capital projects database, and present information and text in a graphical and easily accessible manner.

The system will have the ability to drill down into the feeder systems for detailed exception inquiries by users, thus enabling ready analysis tools for emerging issues.

Integrated investment program

DOI is currently building a strategic capital database to further support the integrated investment program. It has also developed a more rigorous approach to the evaluation of capital projects. Priority setting by the Ministers will be strengthened by setting projects electronically against land-use and transport policies and strategies and public transport reform objectives.

In the past year, broad-scale economic and operational analyses of future roads investment proposals and the total metropolitan rail system have been carried out using relatively consistent criteria. Investment in selected elements of the metropolitan main road and freeway system offers ‘hard dollar’ economic and financial benefits, which exceed commercial hurdle rates.

In general, public transport investment does not offer positive returns in ‘hard dollar’ terms, and justification can only be made in terms of external benefits and social objectives. While these are substantially political rather than economic in character, they can at least be analysed consistently. The metropolitan rail system is of considerable importance to the functioning of Melbourne and to many of its citizens. Rail assets have been consistently under-maintained for many years and, without substantial reinvestment, the operational values of the system will fall increasingly short. Melbourne already has one of the slowest electrified systems in the world, albeit one which is safe and reliable. Without reinvestment that will change.

In 1998-99, DOI will enhance its integrated investment funding capability through:

■ the completion of a strategic infrastructure investment outlook

■ development of a strategic capital project database comprising:

- a catalogue of all-funded capital projects and unfunded projects which Ministers have noted for future consideration and possible implementation

- a facility to monitor the implementation of funded and committed projects

- a facility to develop integrated forward capital program options for considerations by Ministers and the Government

- a decision support facility to assist the Budget and Expenditure Review Committee of Cabinet process. 48

Year 2000

DOI is well in control of its Year 2000 issues and has completed its contingency planning. All systems affected will be converted, replaced or retired by the end of 1998 or in early 1999.

DOI’s IT group has established a comprehensive action plan to address the risk of disrupted operations caused by the possible failure of our own systems and embedded technology and those of our ‘business partners’. We have assessed the work required, assessed risk, and initiated many projects to repair, replace or retire systems and processes which are not Year 2000 compliant. It is hoped that a comprehensive testing program will confirm that the new systems are compliant before June 1999. DEPARTMENT OF INFRASTRUCTURE DEPARTMENT Payroll upgrade

DOI will, within this financial year, upgrade the payroll system currently used within the department. The expected improvements that the new system will deliver are:

■ online pay slips

■ online leave management, including applications and approvals

■ improved management reporting.

The new system will make use of Internet technology to deliver information to staff.

Information technology

Infosearch and FindInfo interfaces. Common desktop services environment

There is now a common information technology platform across DOI, including common desktop services. This allows free transfer of information, sharing of ideas and knowledge and a more immediate and responsive discourse through electronic means.

DOI completed the development and implementation of its ‘Common Desktop’ project during the year. All staff now have powerful PCs from which they can access a comprehensive range of IT services over a modern network. These services include Lotus Notes Email, Diary and Web access; Microsoft Office 95; and access to business systems such as Financials, Records, HR/Payroll, Planning and Library.

The delivery of these services is now provided by a team of contracted IT staff, partly replacing the previous, unsatisfactory third-party provider. Superior levels of reliability and timely support are already apparent. New IT services can be installed for all staff simultaneously by the automated deployment of the latest software releases.

A spatial information resource is currently under development to support land-use and transport planning. This includes the newly developed State Digital Map Base, provided by Land Victoria, consisting of cadastral, road network and topographic data, satellite imagery and aerial photography, and a range of utility and other spatial information. 49 ANNUAL REPORT 1997 – 98 ONLINE 2001 Analytical and data-processing tools are being developed to take full advantage of this information resource, including specialised data extraction and manipulation applications for socio-demographic data, including the 1996 Journey to Work data.

In conjunction with this work, a corporate metadata system has been developed for managing spatial information, composed of two applications - FindInfo and ViewInfo. FindInfo provides a list and description of available spatial information. ViewInfo provides data viewing and simple analysis, where availability and security constraints permit. FindInfo and ViewInfo will be rolled out as part of the common desk top services within DOI in July1998. DOI now has first-class IT infrastructure.

Online 2001

The Government is strongly committed to bringing the benefits of the information age to all Victorians through its Victoria 21 multimedia strategy. A key initiative is the Online 2001 project, which requires all departments to provide all Victorian Government information and services online by the year 2001.

DOI has engaged a senior project manager and consultancy support to produce an Online 2001 strategy, and has undertaken an audit of information and transactions potentially suitable for online delivery. This project will complement the work of the Year 2000 program. An extensive program of systems work will be established, for progressive implementation by DOI’s business divisions through 1999 to 2001, to ensure that all objectives of the Multimedia Victoria plan, Online 2001 – from Vision to Reality are achieved.

The Online 2001 project will drive the systems plans of all DOI businesses to create the applications that will deliver online transport policy, land-use planning, infrastructure investment and relevant regulatory services.

Implementing output management

In preparation for the 1998-99 Budget, DOI reviewed its output structure to ensure it reflects the business components within DOI.

An outputs costings study will be undertaken, which will refine cost allocation methodologies through the identification of direct and non-direct and fixed and variable costs.

Financial reporting is being converted from the old cash basis to full-cost accrual budgeting with the integration of non-financial data and performance measures. Electronic data feeds will be implemented for the transmission of information to central agencies as well as the collection process for DOI agency data feeds.

Managers will be held accountable for total resource usage and the cost of capital and depreciation will be reflected in unit cost of outputs produced/purchased.

Benchmarking will continue to apply in many areas. New 10-year contracts for route bus services, entered into by the Government earlier in 1998, have been framed around industry-based benchmark funding levels. The funding and service agreements for the privatised train and tram networks are also expected to employ this approach. 50

Human resource strategies

DOI’s human resource development strategies are directed to the critical organisational issues of privatisation, growth of contract management functions, changes to DOI’s role in planning and local government functions, and the challenges of process re-engineering and electronic information and commerce through Online 2001.

Human resource development

DOI’s corporate training and development strategy 1997–98 used a variety of training modes, including postgraduate courses at universities, nationally accredited courses, competency-based certificates, one-off short courses, Recognition of Prior Learning processes, team development DEPARTMENT OF INFRASTRUCTURE DEPARTMENT processes, the DOI Open Seminar series, and the leadership development projects.

Demonstrably increased competency has been achieved in the key areas of contract/project management, IT skills and knowledge management, financial management, generic management skills and analytical techniques.

DOI Certified Workplace Agreement

DOI’s Workplace Agreement was certified by the Australian Industrial Relations Commission in March of this year. The Agreement covers all non-executive employees for the next two and a half years, providing salary increases of 7.5 per cent over the period in return for the delivery of defined objectives.

The Agreement has standardised employment conditions and entitlements for employees delivering efficiencies through the streamlining of administrative processes. Through the Agreement process, DOI has identified areas for review which have the potential to deliver increased efficiencies following review and reorganisation. These are currently being addressed.

The introduction of Lotus Notes has provided the vehicle to review, redevelop and easily maintain policies and guidelines to support the Certified Agreement. This will provide managers and employees with access to up-to-date documents, improving the decision-making processes for DOI.

Performance management

As part of the negotiation of the DOI Certified Agreement, DOI undertook to review its performance management system. Department-wide staff focus groups gave feedback and a staff Reference Group was established to contribute to the review. The system has now been revised and presented to staff and is being implemented. It continues to support the alignment of DOI’s Corporate and Business Plans with individual accountabilities in staff work performance plans, and focuses on the development of the competencies staff need to deliver current and future business plans.

Enhancements include improved management of the system to ensure consistency of approach and transparent, defensible pay outcomes. It also incorporates some of the planning tools developed in the Office of the Public Service Commission-sponsored Managed Role Evolution project, which DOI contributed to in 1997.

An important aspect of the performance management system now in place in DOI is that a significant shift has been achieved to align future salary increases with performance. The majority of performance payments are now discretionary, subject to exceeding requirements against stretch goals negotiated between managers and staff. 52

Looking ahead, DOI is also the pilot site for the Victorian Electronic Records System, currently being undertaken with the assistance of the Public Record Office and CSIRO, and funded by the government as a micro-economic reform initiative.

DOI’s traditional library service has been culled, rationalised and reshaped as InfraLib Ð the DOI Knowledge Exchange. All information resources held by InfraLib can be identified by all staff from their PCs, and the capability will be progressively extended to increase the proportion of ‘holding’ which can be read from the desktop.

During 1998-99, these knowledge services will be further developed to provide metadata for business systems data, projects, documents, Web services, Lotus Notes

DEPARTMENT OF INFRASTRUCTURE DEPARTMENT databases and electronic records.

Youth initiatives

Young Achievement Australia

DOI is sponsoring the Young Achievement Australia (YAA) business skills program for the third year running. YAA is a national non-profit organisation which facilitates business programs between industry and the youth of Australia. The sponsorship entails the provision of a $3,300 financial grant., staff members to act as mentors/advisers, materials and a venue for the weekly meetings. Five staff members have agreed to act as mentors to a group of students participating in the Participants in the Young 24-week program. Achievement Australia business skills program. Work experience

DOI is committed to the training and development of young, promising graduate and undergraduate staff members through direct sponsorship of their education and by encouraging them to take up posts in other organisations, both locally and overseas, to broaden their experience and increase their knowledge.

DOI also provides opportunities for practical work experience through a number of initiatives, for example, for town planning students from a number of universities; for people employed under the Industry and Public Sector Traineeship Program; and for secondary-college students.

Nestlé Write Around Australia Program

Through the Office of Local Government, DOI is responsible for coordinating the Victorian component of the annual Nestlé Write Around Australia Program. This is a writing competition for Year 5 and 6 students and attracts approximately 7,000 entries from Victoria each year. Writing workshops with well-known authors are conducted as part of the program and prizes are provided to winning students and their schools. 53 ANNUAL REPORT 1997 - 98

Women’s initiatives

DOI is committed to the Government’s strategy to provide a safe, secure environment and to ensure that women need not fear for their safety. A comprehensive strategy to develop Victoria as a State with high living standards and a competitive economy is considered necessary to achieve this.

To date, DOI has:

■ established of an interdepartmental committee

and a cross-portfolio reference group to consider NightRider bus in Swanston Street. options for implementing a ‘whole-of- government’ strategy on violence against women

■ instigated reforms to the taxi industry which resulted in improved safety, driver courtesy, lifting the image and performance of drivers and operators and thereby increasing the confidence of women in using taxis

■ trialled surveillance cameras in Melbourne’s taxis in February 1998 to curb violence and increase the safety of drivers and passengers

■ established the Pride of Place Program to address urban design issues, including those relating to community safety and improvement in the quality of the urban environment

■ launched the Victorian Local Government Women’s Charter, which aims to improve women’s participation at all levels of government

■ supported the Women’s Planning Network Victoria Inc. in a number of studies relating to women’s issues including public transport

■ established the NightRider service to provide safe late night travel.

DOI is proposing to implement the following initiatives

Providing a safer public environment:

■ ongoing improvement of amenities for users of the public transport system through a safety program which includes improved lighting, video surveillance, help telephones, installation of public telephones, radio communication facilities for drivers, ramp and lift access at railway stations and Transit Police patrols

■ assess the use of surveillance cameras in Melbourne’s taxis to improve driver and passenger safety

■ continue the support of Pride of Place Program until the end of 1998. 54

Other initiatives which are being considered:

■ in addition to the ongoing public transport safety improvement programs, new strategies are under consideration to address the needs of women. These include improved access to public transport facilities through rural and metropolitan intermodal interchange facilities and school bus safety initiatives

■ further initiatives for increased safety in taxis, following the assessment of in-taxi surveillance cameras

■ examination of the Building Code of Australia in respect of measures which meet the needs of women’s safety, including location and access to public amenities, exits and lighting DEPARTMENT OF INFRASTRUCTURE DEPARTMENT ■ development of Municipal Strategic Statements by councils to promote the role of women in all strategic planning work relating to land use and development in each municipality

■ the Minister for Planning and Local Government is promoting the role of women in the development of Municipal Strategic Statements by councils.

Video surveillance at railway stations. SUMMARY OF FINANCIAL RESULTS

55 ANNUAL REPORT 1997 - 98

DOI comprises the following entities:

■ Department

■ Secretary to DOI (an independent body corporate created under the Project Development and Construction Management Act 1994) operating through BSA and OMP

■ Architects Registration Board

■ Building Control Commission

■ Docklands Authority

■ Heritage Council

■ Marine Board of Victoria

■ Melbourne City Link Authority

■ Plumbing Industry Board

■ Public Transport Corporation

■ Roads Corporation

■ Urban Land Corporation.

The financial statements presented in this annual report relate strictly to the controlled operations of DOI known as the Department and include the operations under the body corporate ‘Secretary to the Department of Infrastructure’ delivered through BSA and OMP. All other agencies within the portfolio prepare their own annual reports (including financial statements) and report separately.

The audited operating surplus before abnormal items for the year was $3.176 million (1997 – deficit $198,000). After deduction of an abnormal loss of $9.702 million, there was an operating deficit of $6.526 million (1997 – surplus $8.343 million).

The abnormal loss of $9.702 million was due mainly to the transfer of Jolimont workshops land, the major portion of which has been transferred to another government agency for the Exhibition Street Extension and also the sale of motor vehicles owned by DOI, the proceeds of which were paid to the Government in accordance with government direction.

Financial results – controlled operations

Note 1998 ($m) 1997 ($m) 1996 ($m) Operating revenue - Revenue from government 1 513.4 444.4 468.4 - Other revenue 2 328.4 323.0 303.3 Total operating revenue 841.8 767.4 771.7

Operating expenses 3 838.7 767.6 765.8 Operating surplus (deficit) after abnormal items 4 (6.5) 8.3 61.9 Total assets 5 165.9 164.6 147.7

Total liabilities 6 98.5 90.6 85.8 1. Revenue from government increased mainly as a result of Non-electrified Track Services and Fast Track Services being funded via DOI for the first time, increases in other transport contract services, and an increase in funding required for the capital charge payment. 2. Other revenue increased mainly due to an increase in proceeds from land sales by OMP. 56

3. The increase in operating expenses reflects the increased funding referred to in Note 1 above to meet the costs of transport contract services. 4. The operating deficit after abnormal items for the year of $6.5 million, relates mainly to abnormal items resulting from government directions relating to the transfer of land to other government entities and the sale of DOI’s motor vehicles, the proceeds of which were remitted back to the Government. 5. Overall, total assets remained steady over the year. 6. The majority of liabilities relates to payments due to contractors for capital expenditures undertaken on behalf of client agencies managed through BSA and capital expenditures for nominated projects under the Project Development and Construction Management Act 1994 delegated to OMP.

Capital expenditures totalling $95.6 million (1997 – $99.3 million) were managed on DEPARTMENT OF INFRASTRUCTURE DEPARTMENT behalf of client agencies by BSA and capital expenditures on projects totalling $160.9 million (1997 – $96.4 million) were allocated to OMP by sponsor agencies. These capital works are not included in DOI’s financial statements as they are reflected in the client/sponsor agencies accounts as completed works or works in progress. Projects allocated to BSA include: the design, documentation and project management of schools on behalf of the Department of Education; the refurbishment of the Treasury precinct on behalf of the Department of Treasury and Finance; and the project management of hospitals on behalf of the Department of Human Services. Projects allocated to OMP include: Museum Victoria, Federation Square, the State Library and the Old Customs House.

Portfolio agencies

A further $1028.5 million (1997 – $995.9 million) of State Budget funding was allocated to output groups relating to portfolio agencies such as the PTC, Roads Corporation, Marine Board, Docklands Authority, the Melbourne City Link Authority and the Heritage Council.

During the year, portfolio agencies collected some $703.4 million (1997 – $675.8 million) of revenue (mainly related to motor vehicle registration, stamp duty and driver licence fees) on behalf of the Government which was remitted directly to the Consolidated Fund. A further $816.3 million (1997 – $778.5 million) of transport accident charges were collected on behalf of the Transport Accident Commission. These revenue collections do not appear in the operating statements of DOI or its agencies but are included in the accounts of the other government entities for which the funds were collected.

The net assets of all agencies within the portfolio totalled $17.096 billion (1997 – $16.327 billion), the major agencies being the Roads Corporation $13.370 billion (1997 – $11.816 billion) and the PTC $3.213 billion (1997 – $4.071 billion). The major changes related to additional road earthworks being taken up in Roads Corporation’s financial statements and the transfer of V/Line Freight assets and VicTrack infrastructure assets out of the PTC to V/Line Freight Corporation and Victorian Rail Track Corporation respectively as part of the disaggregation of the PTC. FINANCIAL STATEMENTS AND APPENDIXES DEPARTMENT OF INFRASTRUCTURE

57 ANNUAL REPORT 1997 - 98 financial statements and appendixes FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE

58 CONTENTS

Operating Statement for year ended 30 june 1998 59

Statement of Accumulated Surplus 60 as at 30 june 1998

Balance Sheet as at 30 june 1998 61 DEPARTMENT OF INFRASTRUCTURE DEPARTMENT Statement of Cash Flows as at 30 june 1998 62

Notes to and forming part of the 1998 63 Financial Statements

Statement of Accountable Officer and 85 the Chief Finance and Accounting Officer

Auditor–General’s Report 86 FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE

59 ANNUAL REPORT 1997 – 98

OPERATING STATEMENT FOR THE YEAR ENDED 30 JUNE 1998

Note 1998 ($’000) 1997 ($’000)

OPERATING REVENUE Current appropriations 3 461,873 407,656 Capital appropriations 3 51,561 36,773 Commonwealth Government general purpose grants 283,957 286,796 Fee income – Building Services Agency and Office of Major Projects 22,332 24,012 Proceeds from land sales – Office of Major Projects 18,092 8,190 Miscellaneous receipts 2,860 3,269 Interest income 1,165 720 Total operating revenue 841,840 767,416

OPERATING EXPENSES Transport contract services 4 367,980 317,629 Victorian Grants Commission – grants to councils 283,957 286,796 Administration expenses 5 91,324 85,136 Special project and other grants 6 30,371 28,678 Library grants 21,436 20,881 Payments to government 7 15,804 10,328 Capital charge 8 14,612 7,603 Other expenses 9 8,429 6,605 Depreciation 10 4,510 2,502 Land transferred to government entities – 1,032 Net loss from disposal of assets 11 241 424 Total operating expenditure 838,664 767,614

OPERATING SURPLUS/(DEFICIT) BEFORE ABNORMAL ITEMS 3,176 (198)

Items outside normal operations Abnormal items (resulting from government direction) 12 (9,702) 8,541

OPERATING SURPLUS/(DEFICIT) (6,526) 8,343

The accompanying notes form part of the financial statements. FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE

60

STATEMENT OF ACCUMULATED SURPLUS AS AT 30 JUNE 1998

Note 1998 ($’000) 1997 ($’000) Accumulated surplus at 1 July 69,693 61,853 Net assets previously taken up by the Department of Infrastructure transferred to the Melbourne Heritage Restoration Fund – (503) Operating surplus/(deficit) (6,526) 8,343 Accumulated surplus at 30 June 63,167 69,693 DEPARTMENT OF INFRASTRUCTURE DEPARTMENT

The accompanying notes form part of the financial statements. FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE

61 ANNUAL REPORT 1997 – 98

BALANCE SHEET AS AT 30 JUNE 1998

Note 1998 ($’000) 1997 ($’000)

Current assets Cash and trust funds 13 68,105 66,321 Debtors 14 35,348 28,444 Prepayments 435 389 Land inventory 1 (g) 7,494 13,289 Inventories – 303 Total current assets 111,382 108,746

Non-current assets Land inventory 1 (g) 5,624 12,117 Fixed assets 10 48,873 43,697 Total non-current assets 54,497 55,814

Total assets 165,879 164,560

Current liabilities Creditors and accruals 15 82,321 74,657 Provisions for employee entitlements 16 4,754 3,933 Total current liabilities 87,075 78,590

Non-current liabilities Creditors and accruals 15 – 707 Provisions for employee entitlements 16 11,397 11,330 Total non-current liabilities 11,397 12,037

Total liabilities 98,472 90,627

Net assets 67,407 73,933

Equity Asset revaluation reserve 4,240 4,240 Accumulated surplus 63,167 69,693 Total equity 67,407 73,933

The accompanying notes form part of the financial statements. FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE

62

STATEMENT OF CASH FLOWS AS AT 30 JUNE 1998

Note 1998 ($’000) 1997 ($’000) Inflow/ Inflow/ (Outflow) (Outflow)

Cash flows from operating activities Operating receipts: Receipts from government 797,392 727,284 Fee income 19,566 33,405 Proceeds from land sales 10,085 1,921

DEPARTMENT OF INFRASTRUCTURE DEPARTMENT Other income 697 760 Interest income 638 640 828,378 764,010

Operating payments: Current grants and transfer payments (334,386) (317,404) Capital grants and transfer payments (33,657) (592) Purchase of supplies and services (373,375) (370,133) Employee-related expenses (46,456) (43,039) Capital assets charge (14,612) (7,603) Payments to State Government (13,986) (10,328) (816,472) (749,099)

Net cash provided by operating activities 17 11,906 14,911

Cash flows from investing activities Proceeds from the disposal of fixed assets 2,154 119 Purchase of non-current assets (12,276) (6,997)

Net cash used in investing activities (10,122) (6,878)

Net increase in cash held 1,784 8,033 Cash held at beginning of year 66,321 58,288

Cash held at end of year 17 68,105 66,321

The accompanying notes form part of the financial statements. FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE

63 ANNUAL REPORT 1997 – 98

NOTES TO AND FORMING PART OF THE 1998 FINANCIAL STATEMENTS

1. Summary of significant accounting policies

(a) Basis of accounting

The form and content of the Financial Statements have been prepared in accordance with the Financial Management Act 1994, Australian Accounting Standards and other mandatory professional reporting requirements.

Except for certain assets, which are at market value, and long service leave liabilities, which are measured at the present value of expected future payments, the Statements have been prepared on an historical cost basis.

(b) The reporting entity

In accordance with approval received under the Financial Management Act 1994, the Department’s Annual Report and Financial Statements incorporate the ‘Secretary of the Department of Infrastructure’ as a body corporate created under the Project Development and Construction Management Act 1994. The body corporate includes the functions performed by the Building Services Agency and the Office of Major Projects.

(c) Comparatives

Where a change in presentation in the Financial Statements has been adopted, the comparative figures have been altered to provide an accurate comparison with the current year. However, as a result of the change from ‘Program’ budgeting to ‘Output’ budgeting, the financial data relating to each reporting methodology cannot be accurately aligned. As such, detailed comparative amounts are not disclosed.

(d) Rounding off to the nearest thousand dollars

Rounding off to the nearest thousand dollars has been adopted in the Financial Statements.

(e) Appropriations

Amounts appropriated for controlled transactions are recognised as government revenue in the Operating Statement. Amounts appropriated for administered transactions are not recognised in the Operating Statement, Balance Sheet, or Statement of Cash Flows but are reported as administered government revenue in Note 18.

(f) Depreciation

Assets with a cost in excess of $1,000 are capitalised and depreciation has been provided on depreciable assets so as to allocate their cost or valuation over their estimated useful lives to the Department using the straight-line method. A full year’s depreciation is charged against the value of assets except for the current year additions, improvements and disposals where depreciation commences or ceases in the month in which the asset is purchased or sold.

(g) Land inventories

Land inventories represent land held for development by the Office of Major Projects at Port Melbourne, East Melbourne and Kensington. These parcels of land have been valued at the lower of cost and net realisable values. FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE

64

NOTES TO AND FORMING PART OF THE 1998 FINANCIAL STATEMENTS

(h) Non-current assets

The basis for valuation of non-current assets is as follows:

Land only: Land has been valued at cost and at 1996 and 1997 valuations by licensed valuers on a market value basis.

Land and buildings: Buildings purchased during the year have been valued at cost and those purchased in an earlier period have DEPARTMENT OF INFRASTRUCTURE DEPARTMENT been valued at 1996 valuation by a licensed valuer.

Full valuations for both ‘Land only’ and ‘Land and buildings’ are completed every five years by an independent valuer.

Furniture and equipment: Assets with a market valuation or historical cost value of more than $1,000 have been capitalised and included as depreciable assets.

Leasehold improvements: The cost of fit-out of the Department’s office premises is treated as leasehold improvements. This amount is reflected in the balance sheet and is subject to depreciation over the 10-year life of the lease.

Work in progress: Where it is determined that expenditure will lead to the internal creation of an asset, that expenditure is treated as work in progress until that asset is completed.

Motor vehicles: In accordance with government policy, motor vehicles owned by the Department were sold and leased back in July 1997.

(i) Employee entitlements

The Department has recognised and brought to account employee entitlements accruing for annual leave and long service leave as follows:

(i) The liability for accrued annual leave (including leave loading) has been calculated using the actual leave outstanding for each employee at 30 June 1998 and pay rates applicable at that date.

(ii) The liability for long-service leave is calculated at the net present value of estimated future payments to be made in respect of services provided by employees in accordance with Australian Accounting Standard AAS 30 ‘Accounting for Employee Entitlements’. Estimated future payments are discounted using interest rates supplied by the Department of Treasury and Finance.

The liability for both long-service leave and annual leave includes on costs for payroll tax, WorkCover levy and superannuation. The amount anticipated to be paid during the next 12 months is shown as a current liability.

(iii) As it is considered that non-vesting sick leave, to be taken in future reporting periods, will not exceed entitlements expected to accrue in those periods, no provision has been made. FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE

65 ANNUAL REPORT 1997 – 98

NOTES TO AND FORMING PART OF THE 1998 FINANCIAL STATEMENTS

(j) Leases

A distinction is made between operating and finance leases. Operating leases are those in which the lessor effectively retains all substantial risks and benefits. Finance leases effectively transfer from the lessor to the lessee all substantial risks and benefits incidental to ownership of the leased asset. Operating lease payments are representative of the pattern of benefits derived from leased assets and accordingly are charged to the Operating Statement in the periods in which they are incurred. The Department has not entered into any finance lease arrangements. See also Note 20 (i).

(k) Treatment of capital expenditure carried out under the Project Development and Construction Management Act 1994

The corporate entity ‘Secretary to the Department of Infrastructure’ (‘Secretary’) created under the Project Development and Construction Management Act 1994 is allocated the responsibility for each major project and is assigned appropriate powers as part of the process of project nomination by the Governor in Council under the Act.

The Office of Major Projects under delegated authority from the ‘Secretary’ manages the Government’s interest in delivering the project, drawing on funds appropriated to sponsor departments.

Completed projects are handed over to the appropriate client/sponsor agency responsible for occupancy and use of the asset.

The Building Services Agency, also operating under delegated powers from the ‘Secretary’ created under the Project Development and Construction Management Act 1994, is contracted by client agencies to undertake work on behalf of those agencies.

Capital works expenditure undertaken during the financial year by the ‘Secretary’ has not been included in the Department’ s Operating Financial Statements as it has been included in the client/sponsor agencies’ accounts as either completed works or works in progress. Whilst the Operating Statement does not include the income or expenditure of client/sponsor agencies, the Balance Sheet does reflect funds owing to or by the ‘Secretary’ for project works and monies held on behalf of client/sponsor agencies. The following summary represents client/sponsor agencies where capital expenditures have been undertaken by the ‘Secretary’, for the year ended 30 June 1998:

BUILDING SERVICES AGENCY OFFICE OF MAJOR PROJECTS

Client agency 1998 1997 Sponsor agency 1998 1997 $’OOO $’OOO $’OOO $’OOO Justice 29,622 22,161 Premier and Cabinet 137,862 47,943 Treasury and Finance 22,058 20,224 State Development 13,264 48,328 Education 17,828 21,582 Infrastructure Portfolio 9,330 115 Human Services 13,799 25,656 Human Services 486 – Other 5,365 751 Infrastructure Portfolio 3,707 3,223 Natural Resources and Environment 2,103 2,744 Premier and Cabinet 731 2,928 State Development 367 67 95,580 99,336 160,942 96,386 FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE

66

NOTES TO AND FORMING PART OF THE 1998 FINANCIAL STATEMENTS

(l) Administered resources

The Department administers, but does not control, certain resources on behalf of the Government. It is accountable for the transactions involving those administered resources, but does not have the discretion to deploy the resources for achievement of the Department’s objectives. For these resources, the Department acts only on behalf of the Government. The accrual basis of accounting has been used in accounting for administered resources.

DEPARTMENT OF INFRASTRUCTURE DEPARTMENT Transactions and balances relating to these administered resources are not recognised as departmental revenues, expenses, assets or liabilities, but are disclosed in Note 18.

In accordance with Bulletin 12 issued under the Financial Management Act 1994, revenue arising from user charges for the provision of goods and services is accounted for as controlled revenue, even though these revenues are remitted to the Consolidated Fund.

2. Outputs of the Department

The identity and outcomes of each output undertaken by the Department during the year ended 30 June 1998 are summarised as follows:

Output Group 201: Strategic Infrastructure Planning

Description: Policy and strategy development and information for public and private sector investments; integrated strategic planning frameworks and related development projects; coordinated public transport and road infrastructure policies.

Key government outcomes: • creation of an integrated land use and infrastructure strategy for the Melbourne metropolitan area and key regions; • improved investment decisions within the context of a long-term economic outlook for infrastructure demand and supply; • high level strategic plans integrating transport and land-use strategies; • coordination of cross-agency development projects with significant impacts on land-use and the environment; • long-term strategic plans for the provision of public transport; • contribution to the Government’ s Economic Development Framework, particularly on infrastructure aspects and development of a Regional Development Framework for land-use planning and infrastructure management and development. FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE

67 ANNUAL REPORT 1997 – 98

NOTES TO AND FORMING PART OF THE 1998 FINANCIAL STATEMENTS

Output Group 202: Contracted Transport Services

Description: Provision of contracted public transport services including passenger and freight rail services, light rail and tram services, bus services, and disability taxi services through public and private providers.

Key government outcomes: A public transport service which is clean, safe and reliable, builds patronage while reducing its call on government funding. Where possible, competitive environments for the delivery of services will be encouraged and where appropriate, competitive private sector providers will be contracted for service delivery.

Output Group 203: Infrastructure Management and Delivery

Description: Development, delivery and management of efficient infrastructure systems including roads, traffic management, port services, non-electrified rail infrastructure and major infrastructure projects.

Key government outcomes: Victoria can maximise the economic benefits of existing and future infrastructure through efficient infrastructure development, management and delivery systems. Where possible, private-sector providers will be contracted for infrastructure delivery. Areas of focus include: • establishment of the Victorian Rail Track Corporation; • improved accessibility, reduced travel costs and safe, reliable and efficient road conditions; • development of the City Link to improve access between industry, port, rail and airport facilities through linking of three major freeways; • development of Melbourne Docklands as a water-front place of character and quality for living, working and business; and • other major development projects.

Output Group 204: Transport Safety and Regulation

Description: Provision of transport safety and regulation initiatives including integrated safety strategies, information and education services, licensing, registration accreditation and compliance audits.

Key government outcomes: • substantial reduction in the number and severity of road crashes and the resultant cost of road trauma; • provision of safe and reliable taxi and tow truck services to the community through development and implementation of standards and efficient dispatch systems; • increased safety and competitiveness of public transport systems, through accreditation of new providers; • development of nationally uniform or consistent transport regulation and road transport law; • provision of efficient, effective, nationally consistent, customer orientated driver licensing, vehicle registration, revenue collection and driver and vehicle information services; • maximising marine safety through regulation, monitoring compliance with prescribed safety standards and raising community awareness of marine safety issues; and • ensuring effective response arrangements to combat marine pollution incidents in State waters. FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE

68

NOTES TO AND FORMING PART OF THE 1998 FINANCIAL STATEMENTS

Output Group 205: Local Government, Planning and Development

Description: Achievement of local government planning and development reforms to foster sustainable development through the provision of policy advice guidelines and framework, implementation of new planning system, monitoring performance to ensure accountability and effectiveness of local government, building and development industry policy and project facilitation and evaluation of new reforms.

DEPARTMENT OF INFRASTRUCTURE DEPARTMENT Key government outcomes: • efficient, responsive and accountable local government services achieved through reduced costs, competitive tendering and improved quality of services; • integrated strategic land-use planning frameworks which foster sustainable development, enhance the natural and built environment and contribute to enhancing the quality of life for all Victorians; • a competitive, stable environment for private investors; • continued protection of Victoria’s most important cultural heritage; and • development of the building and development industry through best practice asset management by government and an integrated urban design policy. FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE

69 ANNUAL REPORT 1997 – 98

NOTES TO AND FORMING PART OF THE 1998 FINANCIAL STATEMENTS

3. Summary of compliance with financial directives for the year ended 30 June 1998

The following table summarises costs for individual outputs, categorising amounts into controlled or administered. As a result of the change from ‘Program’ budgeting to ‘Output’ budgeting, the financial data relating to each reporting methodology cannot be accurately aligned. As such, detailed comparative amounts are not disclosed (refer to Note 2 for description of outputs).

Outlays by output group

(i) Expenditure for the provision of outputs 1997-98

CURRENT APPROPRIATION EXPENDITURE

Original Final Controlled AdministeredTotal actual actual actual $’000 $’000 $’000 $’000 $’000

Total 1996–97 1,024,089 1,017,266 407,656 609,610 1,017,266

Total 1997–98 1,020,235 1,027,359 461,873 565,486 1,027,359

These funds were allocated across the following output groups:

Strategic Infrastructure Planning 3,956 10,732 10,732 – 10,732

Contracted Transport Services 556,950 555,719 351,759 203,960 555,719

Infrastructure Management and Delivery 327,002 322,071 20,631 301,440 322,071

Transport Safety and Regulation 61,432 65,304 12,857 52,447 65,304

Local Government, Planning and Development 70,895 73,533 65,894 7,639 73,533

Administered expenditure encompasses purchases of outputs from the following entities: Public Transport Corporation, Docklands, Heritage Council, Marine Board, and VicRoads.

(ii) Additions to the net asset base 1997-98

CAPITAL APPROPRIATION EXPENDITURE

Original Final Controlled Administered Total actual actual actual $’000 $’000 $’000 $’000 $’000

Total 1996–97 433,052 423,075 36,773 386,302 423,075

Total 1997–98 518,862 514,552 51,561 462,991 514,552 FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE

70

NOTES TO AND FORMING PART OF THE 1998 FINANCIAL STATEMENTS

CAPITAL APPROPRIATION EXPENDITURE

Original Final Controlled Administered Total actual actual actual $’000 $’000 $’000 $’000 $’000

These funds were allocated across the following output groups: Strategic Infrastructure Planning ,430 1,812 1,812 – 1,812 Contracted Transport Services 196,305 173,137 ,397 172,740 173,137 Infrastructure Management and Delivery 284,781 296,164 19,904 276,260 296,164 DEPARTMENT OF INFRASTRUCTURE DEPARTMENT Transport Safety and Regulation 13,100 14,982 ,991 13,991 14,982 Local Government, Planning and Development 24,246 28,457 28,457 – 28,457

Note: excludes Better Roads expenditure of: VicRoads $90.720 million and Melbourne City Link $73.100 million.

Administered expenditure encompasses capital funding provided to: Public Transport Corporation and VicRoads.

Note: income from government in the 1996-97 financial year was categorised as recurrent and works and services appropriation; however, in the 1997-98 financial year, income from government was categorised as current and capital appropriations. The change in categorisation of appropriations better aligns the funding source with the purpose towards which they are applied; that is, expenditure of an operating or capital nature.

4. Transport contract services

1998 ($‘000) 1997 ($‘000) Private bus and rail contracts 205,540 196,563 School bus contracts 96,070 92,570 Multipurpose taxi 29,341 27,504 Non-electrified track services 29,764 – Fast track services 6,480 – Ancillary services 516 633 Tow-truck allocation scheme 269 359 367,980 317,629

5. Administration expenses

1998 ($‘000) 1997 ($‘000) Salaries, wages and allowances 37,533 36,367 Salary oncosts 9,276 8,690 Services and supplies 40,473 35,908 Departure packages 2,227 2,153 Other (including legal fees, insurance, internal audit) 1,684 1,767 Audit fees ,248 ,147 Doubtful and bad debt expense (recovery) ,(117) ,104 91,324 85,136 FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE

71 ANNUAL REPORT 1997 – 98

NOTES TO AND FORMING PART OF THE 1998 FINANCIAL STATEMENTS

6. Special project and other grants

During the year, funds have been expended on special projects with objectives to enhance transport services and significant local government developments for community and social interests and benefits.

1998 ($‘000) 1997 ($‘000) Transport-related special project grants: – Rail station security and amenities ,349 ,– – Water safety/Boating grants ,287 ,190 – Rail (level) crossing safety works ,280 ,400 – School bus interchanges ,131 ,138 – Driver safety education ,124 ,052 – Rail safety campaigns ,080 ,100 – Keep Australia Beautiful campaign ,070 ,085 – Other projects ,836 ,713

Planning, local government and community special project grants: – Steampacket Plaza – waterfront (Geelong) 4,750 5,260 – Pride of Place – urban environment design projects 2,951 ,– – RMIT heritage buildings refurbishment 2,000 ,– – Market Square development (Mount Alexander Shire) ,– 2,250 – Rural transport project (Mount Alexander Shire) ,– ,380

Other grants – National Rail Corporation * 7,554 ,– – Heritage buildings restoration 2,984 5,383 – State Boating Council ** 2,286 ,– – Building Better Cities ,– 11,096 – Other (including beach cleaning, Dynon Road rail crash beam) 5,689 2,631 30,371 28,678

* This amount represents the State’s contribution to the National Rail Corporation under the National Rail Corporation Act 1991.

** During the year, the Department assumed the responsibility for State Boating Council activities which were originally administered by the Marine Board of Victoria. In 1996–97 the amount administered by the Marine Board of Victoria was $2.228 million. In 1997-98 these funds were expended through the Council as follows:

$ – Victorian Water Police 817,000 – Boating registration collection costs (VicRoads) 490,000 – Boating facility improvement works 979,000 2,286,000 FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE

72

NOTES TO AND FORMING PART OF THE 1998 FINANCIAL STATEMENTS

7. Payments to government

1998 ($‘000) 1997 ($‘000) Proceeds from land sales 10,943 6,100 Miscellaneous receipts and other asset sales 4,861 4,228 15,804 10,328 DEPARTMENT OF INFRASTRUCTURE DEPARTMENT 8. Capital charge

Capital charge is a cost levied by the Department of Treasury and Finance to reflect the ‘commercial’ cost to the Department if funding for capital purposes had to be borrowed rather than provided by the Government.

For the 1997-98 financial year, the capital charge was based on 8 per cent of the net written down value of the assets.

9. Other expenses

1998 ($‘000) 1997 ($‘000) Cost of land sales 7,111 4,596 Resources provided free of charge 602 1,101 National Road Transport Commission contribution 602 592 Compensation payments under the Planning and Environment Act 114 316 8,429 6,605 FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE

73 ANNUAL REPORT 1997 – 98

NOTES TO AND FORMING PART OF THE 1998 FINANCIAL STATEMENTS

10. Fixed assets

1998 ($‘000) 1997 ($‘000) Properties Land only – at cost 9,460 5,320 – at 1996 valuation 5,074 5,416 – at 1997 valuation 9,910 9,910 Land and buildings – at cost 5,248 1,094 – at 1996 valuation 2,175 2,175 Accumulated depreciation (71) (32) Total properties 31,796 23,883 Office assets Furniture and equipment – at cost 15,917 11,217 – at 1993 valuation – 6,246 – at 1995 valuation – 172 Accumulated depreciation (9,112) (10,346) Total furniture and equipment 6,805 7,289 Leasehold improvements 11,186 8,835 Accumulated depreciation (1,138) (238) Total leasehold improvements 10,048 8,597 Work in progress 224 – Motor vehicles at cost – 3,928 Total office assets 17,077 19,814

Total net written down value 48,873 43,697 Depreciation for the year – Properties 42 32 – Furniture and equipment 3,469 2,340 – Leasehold improvements 999 130

4,510 2,502

11. Net gain/(loss) from disposal of non-current assets

1998 ($‘000) 1997 ($‘000) Proceeds from sale of non-current assets 2,365 2,114 Written down value of assets and cost of sales (2,606) (2,537) Net loss from disposal of non-current assets (241) (423) FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE

74

NOTES TO AND FORMING PART OF THE 1998 FINANCIAL STATEMENTS

12. Abnormal items (resulting from government direction)

1998 ($‘000) 1997 ($‘000) Relocation and office fit-out (i) 914 8,541 Land transferred to government entities (ii) (6,955) – Sale of motor vehicles (iii) Proceeds from sale of motor vehicles 3,816 – Written down value of motor vehicles (3,969) –

DEPARTMENT OF INFRASTRUCTURE DEPARTMENT Payment (of proceeds) to government (3,508) – Abnormal gain (loss) (9,702) 8,541

(i) The Department of Treasury and Finance has provided office fit-out costs for the Department’s relocation to Nauru House as a ‘resource provided free of charge’.

(ii) This includes Jolimont workshops land, the major portion of which has been transferred to the Melbourne City Link Authority for the Exhibition Street Extension.

(iii) In accordance with government policy, motor vehicles owned by the Department were sold to the Commonwealth Bank in July 1997. These vehicles have been leased back to the Department from the Department of Treasury and Finance under an operating lease.

13. Cash at bank (including overdraft) and trust funds

1998 ($‘000) 1997 ($‘000) Cash at bank (272) 13,360 Trust funds * 68,377 52,961 68,105 66,321

* The majority of the above funds relate to payments received from client/sponsor agencies for works in progress undertaken on their behalf by the Building Services Agency and the Office of Major Projects. Funds are held in Treasury Trust accounts or with the Treasury Corporation of Victoria and interest earnings are generally paid into the Consolidated Fund.

14. Debtors *

1998 ($‘000) 1997 ($‘000) Trade debtors 20,857 9,687 Others (including client agencies) 14,536 18,919 Less: provision for doubtful debts (45) (162) 35,348 28,444

* The increase in debtors mainly reflects the increased volume of units/house lots sold (but where settlement has not taken place as at 30 June 1998) relating to projects managed by the Office of Major Projects. FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE

75 ANNUAL REPORT 1997 – 98

NOTES TO AND FORMING PART OF THE 1998 FINANCIAL STATEMENTS

15. Creditors and accruals *

1998 ($‘000) 1997 ($‘000) Creditors and accruals 30,091 23,014 Project costs payable 52,144 52,214 Security deposits and trust moneys 86 136 82,321 75,364 Payable Within one year – current liability 82,321 74,657 Over one year – non-current liability – 707 82,321 75,364

* The majority of the amount payable relates to payments due to contractors for works undertaken on behalf of client/sponsor agencies managed through the Building Services Agency and the Office of Major Projects.

16. Employee entitlements

1998 ($‘000) 1997 ($‘000) Provisions Long-service leave 11,195 10,398 Annual leave 3,235 2,645 Executive remuneration 1,721 2,220 16,151 15,263 Payable Within one year – current liability 4,754 3,933 Over one year – non-current liability 11,397 11,330 16,151 15,263

The aggregate employee entitlement liability includes an amount for long-service leave which, as explained in note 1(i) is measured as the present value of the expected future payments to be made in respect of services provided by employees up to the reporting date. The following assumptions were adopted in measuring present value:

Weighted average rates of increase in annual employee entitlements to settlement of the liabilities:

1998 1997 Weighted average discount rates 5.40% 6.48% Weighted average terms to settlement of the liabilities 15.0 years 14.0 years FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE

76

NOTES TO AND FORMING PART OF THE 1998 FINANCIAL STATEMENTS

17. Note to the Statement of Cash Flows

(i) Reconciliation of cash

For the purpose of the Statement of Cash Flows, cash includes cash on hand and in bank (net of outstanding bank overdrafts) and trust funds. Cash at the end of the reporting period as shown in the statement of cash flows is reconciled to the related items in the Statement of Financial Position as follows:

1998 ($‘000) 1997 ($‘000) DEPARTMENT OF INFRASTRUCTURE DEPARTMENT Cash is made up of: (also refer Note 13) Cash in hand and at bank (including overdraft) (272) 13,360 Trust funds 68,377 52,961 Cash at end of year 68,105 66,321

(ii) Reconciliation of ‘net cash provided by Operating Activities’ to ‘Operating Surplus/(Deficit)’

1998 ($’000) 1997 ($’000) Operating surplus/(deficit) (6,526) 8,343 Depreciation 4,510 2,502 Increase in the provision for employee entitlements 889 1,190 Increase in creditors 6,956 3,600 (Increase)/Decrease in debtors (6,787) 1,946 (Decrease)/Increase in provision for doubtful debts (117) 104 Decrease in inventories 303 – Decrease in land inventory (work in progress) 6,287 4,353 Increase in prepayments (46) (42) Net cost from the disposal of non-current assets 241 424 Land transferred to the Department of Natural Resources and Environment – 1,032 Abnormal items 6,196 (8,541) Net cash provided by operating activities 11,906 14,911 FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE

77 ANNUAL REPORT 1997 - 98

NOTES TO AND FORMING PART OF THE 1998 FINANCIAL STATEMENTS

18. Departmental (controlled) and administered transactions

In addition to departmental (controlled) operations which are included in the Balance Sheet, Operating Statement and Statement of Cash Flows, the Department administers or manages certain other activities on behalf of the Government. These administered transactions are determined on an accrual basis and give rise to revenues, expenses, assets, liabilities, and are reflected only in this note to the Financial Statements. As a result of the change from ‘Program’ budgeting to ‘Output’ budgeting, the financial data relating to each reporting methodology cannot be accurately aligned. As such, detailed comparative amounts are not disclosed. Refer Note 2 for Output descriptions.

201 202 203 204 205 Controlled Strategic Contracted Infrastructure Transport Local Gov’t 1998 1997 Infrastructure Transport Management Safety and Planning and TOTAL TOTAL Planning Services and Delivery Regulation Development

REVENUE $’000 $’000 $’000 $’000 $’000 $’000 $’000 Current appropriations 10,732 351,759 20,631 12,857 65,894 461,873 407,656 Capital appropriations 1,812 397 19,905 991 28,456 51,561 36,773 Commonwealth Government general purpose grants ––––283,957 283,957 286,796 Fee income – – 22,332 – – 22,332 24,012 Proceeds from land sales – Office of Major Projects – – 18,092 – – 18,092 8,190 Miscellaneous receipts ––––2,860 2,860 3,269 Interest Income 21 24 987 24 109 1,165 720 TOTAL REVENUE 12,565 352,180 81,947 13,872 381,276 841,840 767,416

EXPENSES Transport contract services – 337,947 29,764 269 – 367,980 317,629 Victorian Grants Commission – grants to councils ––––283,957 283,957 286,796 Administration expenses 11,994 5,598 26,691 8,514 38,527 91,324 85,136 Special project and other grants 50 9,711 2,729 2,286 15,595 30,371 28,678 Library grants ––––21,436 21,436 20,881 Payments to government – – 11,312 – 4,492 15,804 10,328 Capital charge 459 529 4,112 540 8,973 14,613 7,603 Other expenses – 602 7,111 80 635 8,428 6,605 Depreciation 409 471 986 481 2,164 4,511 2,502 Land transferred to government entities ––––––1,032 Net loss from disposal of assets 27 31 5 32 145 240 424 Abnormal items 271 311 6,909 318 1,893 9,702 (8,541) TOTAL EXPENSES 13,210 355,200 89,619 12,520 377,817 848,366 759,073 FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE

78

NOTES TO AND FORMING PART OF THE 1998 FINANCIAL STATEMENTS

201 202 203 204 205 Controlled Strategic Contracted Infrastructure Transport Local Gov’t 1998 1997 Infrastructure Transport Management Safety and Planning and TOTAL TOTAL Planning Services and Delivery Regulation Development

CURRENT ASSETS $’000 $’000 $’000 $’000 $’000 $’000 $’000 Cash and trust funds (262) 3,186 61,190 (2) 3,993 68,105 66,321 Debtors – – 35,184 – 164 35,348 28,444 Prepayments 3 177 211 19 25 435 389 DEPARTMENT OF INFRASTRUCTURE DEPARTMENT Land inventory – – 7,494 – – 7,494 13,289 Inventories ––––––303 (259) 3,363 104,079 17 4,182 111,382 108,746

NON-CURRENT ASSETS Land inventory – – 5,624 – – 5,624 12,117 Fixed assets 1,537 1,768 13,752 1,806 30,011 48,873 43,697 1,537 1,768 19,376 1,806 30,011 54,497 55,814

CURRENT LIABILITIES Creditors and accruals 143 14,584 65,559 879 1,156 82,321 74,657 Provisions for employee entitlements 421 484 1,129 495 2,226 4,754 3,933

564 15,068 66,688 1,374 3,382 87,075 78,590

NON-CURRENT LIABILITIES Creditors and accruals ––––––707 Provisions for employee entitlements 980 1,128 2,955 1,152 5,182 11,397 11,330 980 1,128 2,955 1,152 5,182 11,397 12,037

NET ASSETS (266) (11,065) 53,812 (703) 25,629 67,407 73,933 FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE

79 ANNUAL REPORT 1997 - 98

NOTES TO AND FORMING PART OF THE 1998 FINANCIAL STATEMENTS

201 202 203 204 205 Administered Strategic Contracted Infrastructure Transport Local Gov’t 1998 1997 Infrastructure Transport Management Safety and Planning and TOTAL TOTAL Planning Services and Delivery Regulation Development

REVENUE $’000 $’000 $’000 $’000 $’000 $’000 $’000 Current appropriations – 203,960 301,440 52,447 7,639 565,486 609,610 Capital appropriations – 172,740 276,260 13,991 – 462,991 386,302 Special appropriations – Better Roads trust funding – – 185,000 – – 185,000 178,901 Commonwealth Government general purpose grants – – 106,846 – – 106,846 216,335 Miscellaneous receipts – – – 198 – 198 856 Interest Income – 188–––188– Net revenue from disposal of assets – 19,549–––19,549 – TOTAL REVENUE – 396,437 869,546 66,636 7,639 1,340,258 1,392,004

EXPENSES Administration expenses – 188–––188– Payments to government – 19,549 106,847 198 – 126,594 217,191 Transfer payments – 376,700 762,699 66,438 7,639 1,213,476 1,174,813 TOTAL EXPENSES – 396,437 869,546 66,636 7,639 1,340,258 1,392,004

CURRENT ASSETS Cash and trust funds – 2,016 32,131 – 253 34,400 14,611 Heritage property loans ––––2,260 2,260 2,260 – 2,016 32,131 – 2,513 36,660 16,871

NON-CURRENT ASSETS Shares in National Rail Corporation (at cost) – 35,100–––35,100 35,100 Heritage property loans ––––800800800 – 35,100 – – 800 35,900 35,900

CURRENT LIABILITIES Trust funds – 2,016 32,131 – 253 34,400 14,611 – 2,016 32,131 – 253 34,400 14,611

NET ASSETS – 35,100 – – 3,060 38,160 38,160 FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE

80

NOTES TO AND FORMING PART OF THE 1998 FINANCIAL STATEMENTS

19. Commitments for capital expenditure

At reporting date, the ‘Secretary’ had entered into contracts when operating under the Project Development and Construction Management Act 1994 through the Building Services Agency and the Office of Major Projects, for the construction expenditures in the following portfolios:

Summary of commitments – client/sponsor agencies

1998 ($’000) 1998 ($’000) 1998 ($‘000) 1997 ($’000) 1997 ($’000) 1997 ($‘000) DEPARTMENT OF INFRASTRUCTURE DEPARTMENT Building Services Office of Major Total Building Services Office of Major Total Agency Projects Secretary Agency Projects Secretary Premier and Cabinet 65 129,849 129,914 517 173,283 173,800 Justice 27,811 – 27,811 12,372 – 12,372 State Development 3,212 5,977 9,189 335 1,393 1,728 Education 6,357 – 6,357 7,261 – 7,261 Human Services 6,143 211 6,354 14,650 2 14,652 Treasury and Finance 2,194 – 2,194 18,231 – 18,231 Infrastructure Portfolio 932 260 1,192 419 252 671 Other 539 – 539 1,510 – 1,510 Natural Resources and Environment 514 – 514 1,350 – 1,350 TOTAL 47,767 136,297 184,064 56,645 174,930 231,575

Capital commitments outstanding at year end Within 1 year 154,160 148,375 Between 1 and 2 years 29,504 83,200 Between 2 and 5 years 400 – Greater than 5 years – – 184,064 231,575

20. Commitments for expenditure

(i) Commitments for operating leases

At the reporting date, the Department had the following obligations under non-cancellable leases (these obligations are not recognised as liabilities).

1998 ($‘000) 1997 ($‘000) Operating lease commitments outstanding at year end Within 1 year 5,633 5,115 Between 1 and 2 years 4,365 5,052 Between 2 and 5 years 13,706 9,995 Greater than 5 years 17,186 21,246 40,890 41,408

(ii) Commitments for finance leases

At the reporting date, the Department had no finance lease arrangements. FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE

81 ANNUAL REPORT 1997 – 98

NOTES TO AND FORMING PART OF THE 1998 FINANCIAL STATEMENTS

21. Contingent liabilities

Contingent liabilities arise from guarantees, indemnities and other forms of support provided by the Government and from legal disputes and other claims against the Government arising from a past event. Contingent liabilities by definition are similar to a liability, the distinguishing feature being the uncertainty over the Government’s obligation.

The following is a summary of contingent liabilities:

Four claims relate to zoning classifications contained in planning certificates issued by the Local Government Planning and Market Information Services Division of the Department, totalling $1.797 million.

The remaining claim relates to a legal dispute over an alleged breach of contract involving the Contracts Reform and Compliance Services Division.

22. Disclosures relating to Ministers and the Accountable Officer

In accordance with the Directions of the Minister for Finance under the Financial Management Act 1994, the following disclosures are made for the responsible Ministers and the Accountable Officer.

(i) Persons who held the above positions in relation to the Department at any time during the reporting period are:

Responsible Ministers – The Hon Robert Maclellan, MLA Minister for Planning and Local Government

– The Hon Geoff Craige, MLC Minister for Roads and Ports

– The Hon Robin Cooper, MLA Minister for Transport

Accountable Officer – Dr John Paterson Secretary

For the period 1 July 1997 to 3 October 1997, Mr Colin Jordan acted in the position of Secretary of the Department.

(ii) Remuneration

Remuneration receivable by the Accountable Officer during the year in connection with the management of the Department was in the range: Income between Number $400,000–410,000* (1997 – $220,000–229,999) 1

* Includes bonus paid on completion of employment contract (five years).

The relevant amounts relating to Ministers are reported separately in the Financial Statements of the Department of Premier and Cabinet. FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE

82

NOTES TO AND FORMING PART OF THE 1998 FINANCIAL STATEMENTS

(iii) Other transactions

(a) Shares held on behalf of the State of Victoria – under the National Rail Corporation Shareholders Agreement, the Minister for Transport holds on behalf of the State of Victoria, shares in the National Rail Corporation with a paid up value of $35.1 million. This amount has been taken up as an Administered Asset.

(b) Other related transactions and loans requiring disclosure under the Directions of the Minister for Finance have been considered and there are no matters to report. DEPARTMENT OF INFRASTRUCTURE DEPARTMENT

23. Executive officers’ remuneration

The numbers of executive officers, other than Ministers and accountable officers, and their total remuneration during the reporting period is shown in the first two columns in the table below in their relevant income bands. The base remuneration of executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, long service leave payments, redundancy payments and retirement benefits.

Several factors have affected total remuneration payable to executives over the year: a number of employment contracts were completed during the year and renegotiated and a number of executives received bonus payments during the year. These bonus payments depend on terms of individual employment contracts. Some contracts provide for an annual bonus payment whereas other contracts only include the payment of bonuses on the successful completion of the full term of the contract. A number of these contract completion bonuses became payable during the year.

Total remuneration Base remuneration 1998 1997 1998 1997 No. No. No. No.

Income band ($) Less than 100,000 24 46 29 48 100,000-109,999 13 8 18 10 110,000-119,999 4 3 6 1 120,000-129,999 3 3 5 3 130,000-139,999 2 3 0 2 140,000-149,999 2 0 1 0 150,000-159,999 4 0 0 0 160,000-169,999 1 2 0 1 170,000-179,999 7 0 4 0 180,000-189,999 2 1 0 1 210,000-219,999 0 0 1 0 260,000-269,999 1 0 0 0 310,000-319,999 1 0 0 0 Total numbers 64 66 64 66

Total amount ($) 7,640,194 5,938,147 6,245,935 5,729,893 FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE

83 ANNUAL REPORT 1997 – 98

NOTES TO AND FORMING PART OF THE 1998 FINANCIAL STATEMENTS

24. Superannuation schemes – liability and contributions

No liability is shown for the Department’s notional share of unfunded superannuation in the Balance Sheet. In line with government policy, the unfunded superannuation liability has been reflected in the Financial Statements of the Department of Treasury and Finance. However, superannuation contributions for the reporting period are included as part of salaries and associated costs in the Operating Statement of the Department of Infrastructure.

Details of major Employee Superannuation funds and contributions made by the Department are as follows:

FUND Contribution Contribution Contribution Contribution for the year outstanding at for the year outstanding at 1998 year end 1997 year end 1998 1997 $$$$ State Superannuation Scheme – revised and new 2,377,818 – 2,500,617 – Victorian Superannuation Fund 522,729 489 333,158 – Water Industry Superannuation Fund 238,637 – 261,715 – Transport Superannuation Fund 178,010 – 114,454 12,827 GIO Life Ltd 51,957 – 49,154 – Various other 172,201 – 201,531 – Total 3,541,352 4893,460,629 12,827

The basis for contributions are determined by the various schemes and also relate to salary sacrifice arrangements. The requirements of the Superannuation Industry (Supervision) Act 1993 are fully complied with.

25. Transactions with other Victorian government-controlled entities

During the 1997–98 financial year, transactions were undertaken with other Victorian government-controlled entities.

These transactions are summarised as follows:

1997-98 1996-97 $’000 $’000 Intra Inter Intra Inter Assets – 31,357 6 16,100 Liabilities – 289 – 202 Revenues – 1,747,685 – 1,651,579 Expenses 1,216,705 75,166 1725* 32,655

‘Intra’ transactions are between entities within the the Department of Infrastructure portfolio. ‘Inter’ transactions are with entities outside the portfolio controlled by the Victorian Government. * The 1996-97 ‘Expenses’ did not include transfer payments to agencies totalling $1,175 million as directed by the Department of Treasury and Finance. FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE

84

NOTES TO AND FORMING PART OF THE 1998 FINANCIAL STATEMENTS

26. Financial assets and liabilities

The carrying amount of financial assets and liabilities representative within these financial statements equate to Net Fair Value.

Cash at bank, cash on hand, trust funds and deposits

Cash at bank, cash on hand, trust funds and deposits held with Treasury Corporation of Victoria are

DEPARTMENT OF INFRASTRUCTURE DEPARTMENT carried at nominal values. ‘On call’ deposits with Treasury Corporation yielded an average 5.43 per cent for the year.

Debtors and doubtful debts

Debtors are carried at nominal amount less any provision for doubtful debts. Estimated doubtful debts are based on the examination and assessment of each individual debt. Normal credit terms are generally 30 days except for debtors relating to the Office of Major Projects developments where units need to be completed before settlement can take place. Other debtors mainly relate to government departments and agencies and as such the credit risk is minimal.

Creditors and accruals

Creditors and accruals are recognised for amounts to be paid in the future for goods and services received whether or not billed by the supplier. Terms of settlement are generally 30 days from date of invoice in line with government guidelines.

27. Post Balance Date Events

It is anticipated that the Building Services Agency will be privatised during the 1998-99 financial year. This will have a significant impact on the financial statements of the Department. FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE

85 ANNUAL REPORT 1997 - 98

STATEMENT BY THE ACCOUNTABLE OFFICER AND THE CHIEF FINANCE AND ACCOUNTING OFFICER

In our opinion,

(a) the accompanying Financial Statements of the Department of Infrastructure present fairly the financial transactions of the Department for the year ended 30 June 1998 and the financial position of the Department as at that date, in accordance with applicable Australian Accounting Standards and other mandatory professional requirements.

(b) the Financial Statements of the Department have been prepared in accordance with the Financial Management Act 1994 and comply in all material respects with the directions (Part 9) issued by the Minister under the Act.

At the date of signing this Statement, we are not aware of any circumstances which would render any particulars included in these Financial Statements to be misleading or inaccurate.

DR JOHN PATERSON SECRETARY

DATED:......

BOB McDONALD

CHIEF FINANCE OFFICER

DATED:...... FINANCIAL STATEMENTS DEPARTMENT OF INFRASTRUCTURE

86

Auditor-general’s report DEPARTMENT OF INFRASTRUCTURE DEPARTMENT APPENDIXES

87 ANNUAL REPORT 1997 – 98

1. Output groups and targets 89–98 CONTENTS

2. Legislation 99 Acts administered by the Minister for Planning and Local Government 99 Acts administered by the Minister for Roads and Ports 104 Acts administered by the Minister for Transport 106 Acts amended in 1997–98 107 Acts repealed in 1997–98 108

3. Freedom of information 109

4. LOCAL GOVERNMENT 112 Municipal electoral tribunals 112 Municipal enterprise projects approved in 1997–98 112 Late annual reports 112

5. Multicultural services 113 VicRoads - multicultural services usage data 113 Ethnic child restraint program 114 Public transport 114 Local government 114

6. Statutory authorities and other bodies 115 Architects Registration Board of Victoria 115 Building Control Commission 116 Building Advisory Council 117 Building Regulations Advisory Committee 117 Building Practitioners Board 117 Building Appeals Board 118 Docklands Authority 118 Heritage Council 120 Marine Board of Victoria 120 Melbourne City Link Authority 121 Plumbing Industry Board 122 Public Transport Corporation 122 Roads Corporation (VicRoads) 123 Victoria Grants Commission 124

7. Major publications 1997–98 125 88

8. Competition policy 127 Review of legislative restrictions on competition 127 Current situation 127 Progress achieved in respect of legislation scheduled 127 for review in 1997–98 Competitive neutrality 128 Application of competition policy to local government 128

9. Other available information 129 Building Act compliance 129 DEPARTMENT OF INFRASTRUCTURE DEPARTMENT

10. Compliance index 130

11. Human resources issues 132 Grievance management 132 Progressive work options 132 Occupational health and safety and WorkCover 132 Human resource development 132

12. Staff profile 134

13. Consultants 135

15. Directory Principal Offices and Agencies 1 OUTPUT GROUPS AND TARGETS

89 ANNUAL REPORT 1997 - 98

Output Group 201 – Strategic infrastructure planning

1997–98 targets YTD actual

Infrastructure investment Management of the investment evaluation process and provision of strategic economic advice to inform infrastructure investment decisions. • Completion of institutionally transparent evaluation early 1998 completed of investment projects across the whole of DOI and establishment of capital program • Completion of long-term economic outlook for infrastructure mid 1998 further work in 1998–99 as part of integrated metropolitan strategy

Infrastructure planning strategies Development of integrated long-term strategic planning frameworks and plans for the Melbourne metropolitan area and regional Victoria and the coordination of major development projects under these plans. • Completion of Victorian Regional Development Framework end 1998 end 1998

• Development of key components for integrated mid 1998 mid 1998 Melbourne metropolitan strategy

• Completion of Transporting Victoria end 1997 draft report completed

Transport policy Development of policies and strategies for the coordination provision and management of public transport and road infrastructure and national transport policy framework. • Completion of a suburban rail study end 1997 draft report submitted to Minister and Transport Reform Unit

• Completion of metropolitan Cross-town Bus System strategy plan mid 1998 September 1998

• Contribution to development of national n.a. comments submitted to the greenhouse emissions strategy Department of Premier and Cabinet

• Development of contract model and negotiation of service level agreements with contracted transport providers

- complete review of options for purchasing arrangements end 1997 completed

- develop draft service contracts late 1998 *

- negotiate contracts with operators end 1998 *

* Responsibility transferred to TRU and to be reported by DTF. 90

Output Group 202 – Contracted transport services

Unit of measure Annual target YTD actual

Private train services Provision of transport rail services between metropolitan and regional centres through contract management and private operators. • Private train patrons carried million 0.475 0.494 • Timetabled services delivered % 99.5 100 • Service punctuality % 95 94.7 DEPARTMENT OF INFRASTRUCTURE DEPARTMENT Private bus services Provision of public transport route bus services throughout Victoria through contract arrangements with private operators. • Private bus patrons carried million 73.9 * • Service punctuality (within five minutes of timetable) % 95 91 • Age of bus fleet years 12 9** • National Bus patrons of total bus patrons % >16.05 * • NightRider patrons carried million 0.075 n.a. • Metro distance operated million km 61 61 • Country distance operated million km 11.1 8.33

* Updated patronage data is not available due to transitional issues associated with the introduction of the AT system across Melbourne **Target based on original contract estimate of age of fleet which has now proven to be more realistically up to nine years.

School bus services Provision of school bus transport services in rural and outer metropolitan locations through contract arrangements with private operators. Buses operated no. 1630 1629 Distance operated million km 33.8 25.0

Disability taxi services Administer the Multi Purpose Taxi Program which is designed to provide subsidised taxi transport for people with permanent severe disabilities. Applications assessed no. 25,000 25,307 Applications assessed within established timelines % 80 95 Multi Purpose Taxi Program cards reissued no. 174,000 * Re-engineering of Multi-Purpose Taxi Program • commenced date January 1998 February 1998 • estimated completion date date June 1999 June 1999

* Cards reissue project will commence in the June quarter. 91 ANNUAL REPORT 1997 - 98

Unit of measure Annual target YTD actual

V/Line Freight services Rail-based haulage in country Victoria and southern New South Wales by newly established V/Line Freight Corporation. (A contract for Fast Track services between V/Line and DOI has been finalised and is awaiting ministerial approval).

Met Train services Provision of rail passenger services within metropolitan Melbourne. • Timetabled services delivered all day % 99.5 98.6 • Service punctuality peak % 90.0 90.8 all day % 94.0 93.7

Met Tram services Provision of light rail and tram passenger services within metropolitan Melbourne. • Timetable services delivered all day % 99.8 99.7 • Service punctuality all day % 88.0 85.7* * Reduced service punctuality due to greater than expected staff absenteeism

Met Bus services Provision of bus services on six routes in the southern and western suburbs of Melbourne. • Timetabled services delivered all day % 99.5 99.9 • Service punctuality all day % 95.0 96.0

V/Line Passenger services Provision of rail passenger services and associated road coaches in country Victoria. Service delivery interurban % 99.5 99.8 intercity % 99.5 99.7 road coach % 99.5 100.0 Service punctuality interurban % 93.5 95.2 intercity % 96.0 95.6 road coach % 98.5 96.9 92

Output Group 203 – Infrastructure management and delivery

Unit of measure Annual target YTD actual

Port and shipping service Development and delivery of strategies and mechanisms for the effective monitoring, analysis and support of the ports industry in Victoria. • Establishment of the Victorian Port Industry Council date end 1997 end 1998 • Development and implementation of a cruise ship strategy date early 1998 end 1998

Docklands development DEPARTMENT OF INFRASTRUCTURE DEPARTMENT Development of Melbourne Docklands as a waterfront place of character and quality for living, working and business under fair and open process. • Development agreements executed with preferred no 4 5 developers by December 1997 • Ratio of private investment to public investment by Authority ratio 50:1 50:1 • Private-sector investment and development $ million 50 80 • Formal grievances regarding selection process by bidders no. 0 0 • Public information forums and smaller direct briefing presentations no. 25 30+ • Overall 10-year financial return based on effective NPV $ million 33 33 management of risks

Road system development Improvements to the principal road network to lower road user and other costs and improve accessibility. • Benefit Cost Ratio for: - outer metropolitan 2-4 lane upgrades BCR 5.3 5.3 - metropolitan major projects BCR 4.6 4.6* - rural arterial projects BCR 3.6 3.6 • Approved projects completed within a financial year: - $0.25-1 million no. 53 37** - $1-10 million no. 15 14 - greater than $10 million no. 1 1

* The actual represents the physical completion of projects within and/or below the approved budget and has been based on the estimated benefits that will accrue to the community from the projects. It is noted that the benefit cost ratio (BCR) of completed projects may differ from the initial assessment as a result of changed project cost and/or changed project benefits. The latter will not generally be able to be assessed until traffic-use patterns have stabilised after completion of the work. Such assessment cannot reasonably be made until at least a year or more after the project is open to traffic. Post-construction audits of projects BCRs are carried out on a sample of projects to provide feedback to economic evaluation procedures

** Projects within this category were lower than the targets due to a number of factors including longer community consultation process, phasing of contracts and the impact of demand placed on the limited resources available in the industry as a result of the significant program of works across the State. 93 ANNUAL REPORT 1997 - 98

Unit of measure Annual target YTD actual

Road system maintenance Maintenance of safe, efficient and acceptable road conditions at least overall cost to the community. • Arterial roads - smoother travel than 110 NRM % 84 89 - rougher travel than 140 NRM % 6 4 • National highways - smoother travel than 110 NRM % 98 98 - rougher travel than 140 NRM % 0 0 • Arterial network - 21,230 km resurfaced - rural – 18,060 km % 10 10.2 - urban – 3,160 km % 7.8 8.3 • Arterial network rehabilitated - rural – 36,986 km % 1.0 0.9 - urban – 10,460 km % 1.5 1.4 • National highway network – 1,000 km resurfaced % 8.7 9.5 • Cost per lane of routine maintenance - arterial $lane km 800 770 - national highway $lane km 1,500 1,460

Traffic management and information Provision of traffic operational and safety improvements, traffic information systems, maintenance of traffic signalling, line-marking, provision of street lighting and bicycle facilities. • Traffic incidents cleared within 50 mins % 85 81.3 • Travel times per kilometre (congestion indicator) - a.m. peak min. per km 0.72 0.71 - p.m. peak min. per km 0.58 0.58 - off peak min. per km 0.41 0.44 - all day min. per km 0.52 0.53 • User satisfaction with travel times index >6.11 n.a. 94

Unit of measure Annual target YTD actual

Major public construction and land development Management and delivery of nominated public construction and land development projects. • Ratio of private to public capital investment on land development ratio $m 75:1 94:1 projects (total private land expenditure to total project expenditure) • Ratio of operational expenditure to total project expenditure ratio $m 93:1 100:1 (total capital expenditure – private and public/total office costs–$223.7/2.5 million) • Key milestones DEPARTMENT OF INFRASTRUCTURE DEPARTMENT - Commencement of construction on Federation Square date January 1998 November 1997 (project value $186 million) - National Gallery of Victoria (project value $136 million) • design development date February 1998 May 1998 • contract documentation date February 1998 February 1999

- Announcement of private-sector partner for the Mont Park date December 1997 October 1998 development (project value $180 million) - Completion of refurbishment of the Old Customs House ready date April 1998 on target for Immigration Museum fit-out (project value $12 million) - Opening of Imax Theatre in advance of main museum date June 1998 May 1998 completion (project value $250 million) 95 ANNUAL REPORT 1997 - 98

Output Group 204 – Transport Safety and Regulation

Unit of measure Annual target YTD actual

Road safety Improvement to the safety of road users in accordance with the Safety First strategy, including maintenance of the vehicle roadworthy scheme and improvements to high road crash sites. • Fatal crashes a year due to vehicle defects % 1.5 1.0* • Victorian vehicle fleet which pass the first inspection when % 25 32** undergoing a RWC inspections † • Reduction in road user casualties: †† - drivers % 5 6.3† - passengers % 5 10.3 - motorcyclists % 5 2.7 - bicyclists % 5 2.7 - pedestrians % 5 0.7 • Reduction in casualties at treated sites ††† %1515

* Represents a reduced number of fatalities due to vehicle defects ** Reflects improvement in the safety standard of vehicles being inspected † Approximately 700,000 of the 3.0 million Victorian vehicle fleet undergo roadworthiness inspections, a two-stage process, and all must pass the second inspection to be registered

†† It should be noted that the number of fatalities for 1997 was 337, the lowest since 1984. Economic indicators suggest that travel on Victorian roads increased between 1996-97 and 1997–98. Improvement in economic activity is usually associated with increased travel on roads which is reflected in a number of indicators. The unemployment rate has shown a steady decline from 1993 stabilising at around 8.4 per cent from late 1997 onwards. Registered motor cars and motorcycles have increased from 2.8 million and 70,848 respectively in January 1996, to 3.0 million and 76,968 in June 1998 ††† A site where there has been a black spot treatment/program.

Driver and vehicle licensing and registration Efficient provision of customer oriented registration and licensing services and a responsive vehicle information service. Cost of maintaining a driver licence record (UTE) $ per unit 6.09 * Cost of maintaining a vehicle record (UTE) $ per unit 8.51 * User satisfaction with registration and licensing index >6.16 ** Customers served within 10 minutes % 80 81.5 Information transactions completed on time % 97.5 99.5

* The User Transaction Efficiency measure is based on the AusRoads methodology and is assessed annually using a representative time series. Measures to the 30 June 1998 will be available at the end of September ** Results of the next User Satisfaction with Registration and Licensing survey will be available by December 1998. 96

Unit of measure Annual target YTD actual

Public transport safety regulation and accreditation Development of a comprehensive public transport safety accreditation system. • Development of bus operator accreditation system date February 1998 completed • Conduct of safety compliance audits/inspections no. 100 97 • Develop standardised process for the issue of rail safety date November 1997 completed accreditation certificates within specified timelines • Contributions to the development of Australian railway safety n.a. ongoing ongoing standards, safety auditing processes and guidelines for railway DEPARTMENT OF INFRASTRUCTURE DEPARTMENT safety accreditation • Certification of the Directorate to Quality Assurance date February 1998 May 1998 Standard ISO 9002

Marine safety regulation and accreditation Promote and encourage marine safety by setting effective safety standards, conducting safety audits, investigating accidents and improving the range, quality and availability of marine safety information. • Information material covering commercial and recreational % June 98 on target marine activity is reviewed, published and distributed • Certificates of competency applications assessed within % 90 100 agreed timelines • Responses within agreed timelines for marine pollution incidents % 90 100 • Reduction in number of serious accidents involving commercial no. <15 7 and recreation vessels

Taxi and tow-truck services Administration and regulation of the taxi, hire car, special purpose vehicle, restricted hire car and tow truck industries. • Taxis found defective % <12 14 • Taxis audited * no 9,000 8,851 • Taxi driver training (entry tests) no 1,700 1,512 • Taxi driver training (refresher tests) ** no 4,000 nil • Serious taxi service complaints investigated no 375 332 • Reduction in complaints received on taxi services % 25 10 • Volume and percentage of tow truck licence transactions no 650 525 processed within agreed timelines*** • Driver authorities issued no. approved 600 404

* Minor increase because of intensified enforcement activity prior to special events ** Complete review of all training to be conducted before refresher tests commence *** Downturn in volume because of decrease in sales of tow truck licences due to depressed licence values.. 97 ANNUAL REPORT 1997 - 98

Output Group 205 – Local government, planning and development

Unit of measure Annual target YTD actual

Statutory planning policy and implementation Implementation of planning reform through assistance to councils in reducing strategically-based new-format planning schemes. • State planning tools in place to allow councils to exhibit % 100 100 new planning schemes by 30 June 1998 • Amendments to planning schemes dealt with within 60 days % 90 90

Building and development industry policy and project facilitation Provide assistance to industry development through the development of an urban design policy, project facilitation and demographic and spatial forecasts. • Analysis of 1996 Census data (ABS first release September 1997) date April 1998 on target • Projects facilitated within agreed targets and budgets % 60 50 • Release of urban design policy date March 1998 April 1998

Government asset management policy and projects Development of policies, guidelines, standards and ministerial directions to improve performance in asset management in government. • Government projects that use standard forms of contract % 40 45 • Government projects that use prequalified suppliers % 40 38 • Government agencies assessed as competent in asset % 65 55* management reporting * Currently working on a two year program with the Department of Treasury and Finance to improve competencies.

Local government policy effectiveness and efficiency To improve the efficiency, responsiveness and ensure accountability of local government through the provision of advice and assistance, development of policies and guidelines, provision of grants, and monitoring of local government performance. • Council available expenditure subject to competitive tendering $billion 1.3 1.3 • Councils preparing service charters no. 78 on target • Councils implementing National Competition Policy principles no. 78 on target • Implementation of application of multimedia technology no. of councils 3 3 • Councils developing key performance indicators no. 78 78 • Legislative amendments no. 2 1 • Council elections held according to government timetable no. 3 3 • Guidelines issued improving the quality of reporting by no. 4 4 local government • Commonwealth general purpose grants based on principles no. of councils 78 78 developed by the Commonwealth Government ($287 million) • Library services grants issued ($21 million) no. 43 43 • Administration and payment of beach cleaning subsidies based no. 46 46 on average council spending on sanded areas over the past three years ($1 million) 98

Unit of measure Annual target YTD actual

Heritage conservation Continued protection of Victoria’s cultural heritage assets: implementation of new heritage planning provisions; provision of information and advice and compliance activities; delivery of the Heritage Restoration Program and other heritage projects and administration of the Heritage Act. • Standardised controls introduced by councils in % 100 100 new-format planning schemes • Delivery of fourth year of $16 million Heritage Restoration Program date June 1998 June 1998 • Review of Government Buildings Register and places transferred % 100 100 DEPARTMENT OF INFRASTRUCTURE DEPARTMENT to the Victorian Heritage Register

Land transaction monitoring Monitoring of government real estate (property) transactions. • Adverse government real estate transaction outcomes no. nil nil • Review of Land Acquisition and Compensation Act and date November 1998 on target amendments to the Planning and Environment Act 2 LEGISLATION

99 ANNUAL REPORT 1997 - 98

As at 30 June 1998, the following Acts were administered by the Minister for Planning and Local Government, the Minister for Roads and Ports, and the Minister for Transport.

Acts administered by the Minister for Planning and Local Government

Architects Act 1991 The purposes of the Act are to: • provide for the registration of architects and the approval of architectural partnerships and architectural companies • regulate the professional conduct of architects and provide a procedure for handling complaints against architects • regulate the use of the words ‘architect’, ‘architecture’ and ‘architectural’ • establish the Architects Registration Board of Victoria.

Bayside Project Act 1988 The purpose of this Act is to facilitate the development and use of certain land at Port Melbourne. Much of this Act was specific to the Sandridge development and has been repealed. Provisions of the Act that have been retained include provisions dealing with approval of plans of subdivision, reclamation of land, allowing for reclaimed land to be placed within a municipality, and allowing for land to be revested in the Port of Melbourne Authority.

Bourke Street Mall Act 1982 This Act provides for the financing of the Bourke Street Mall.

Building Act 1993 The Act, which came into operation on 1 July 1994, provides for the regulation of building and building standards. The Act establishes the Building Control Commission. The Act facilitates the adoption of national uniform building standards and reforms aspects of legal liability for building matters. The Act regulates building practitioners in order to provide for both private building surveyors and qualified municipal employees to issue building and occupancy permits. The Act also establishes the Plumbing Industry Board to oversee the occupational regulation of plumbing.

Caravan Parks and Movable Dwellings Act 1988 (all but Part 6 of the Act is administered by the Minister for Fair Trading) Part 6 provides for the establishment of a registration system and minimum standards for caravan parks. The standards and registration of caravan parks are administered by councils.

Casino Control Act 1991 (Sections 128H to 128L, excluding 128K(2) which is administered by the Minister for Finance) The Act is primarily the responsibility of the Minister for Gaming. The Minister for Planning and Local Government, however, administers provisions related to the acquisition of land, road closures and the development of Crown land for the purposes of the Melbourne Casino.

Chinatown Historic Precinct Act 1984 (Jointly administered with the Minister for Tourism) The purpose of the Act is to provide for the operation, management, development and promotion of Little Bourke Street between Exhibition Street and Swanston Street as the Chinatown Historic Precinct. The Act also establishes the Chinatown Historic Precinct Committee. 100

City of Greater Geelong Act 1993 (excluding Part 5, which is administered by the Minister for Rural Development) This Act provides for the restructuring of certain councils in the Geelong region, the constitution of the City of Greater Geelong and the abolition of the Geelong Regional Commission.

City of Melbourne Act 1993 Under the Act, the city’s municipal boundaries were redrawn to incorporate the city’s existing and future major assets. The Act created a new City of Melbourne with a clear focus on the administration and enhancement of key assets.

Como Project Act 1994

DEPARTMENT OF INFRASTRUCTURE DEPARTMENT The main purposes of the Act are: • to repeal the South Yarra Project Act 1984 • to end the Agreement ratified by that Act • to amend the South Yarra Project (Subdivision and Management) Act 1985.

Crown Lands (Reserves) Act 1978 (only in so far as it relates to land known as the Old Treasury Building Reserve. The remaining provisions are administered by the Minister for Conservation and Land Management.) The Act provides for the temporary and permanent reservation of Crown land and for its management.

Cultural and Recreational Lands Act 1963 This Act provides for concessional rating for open space, cultural and recreational land.

Docklands Authority Act 1991 The purpose of this Act is to facilitate the development of the Docklands area and to establish a Docklands Authority to encourage that development.

Environment Effects Act 1978 The Act sets up a procedure whereby the potential environmental impacts of proposed developments which are likely to have significant environmental effects are assessed before decisions are made.

Geelong Market Site Act 1983 The purpose of the Act is to allow the Greater Geelong City Council to redevelop the land known as the Geelong Market Site, either in its own right or in association with other persons, and to borrow money for that purpose.

Health Act 1958 While the Minister for Health and the Minister for Youth and Community Services have primary responsibility for the Act, the Minister for Planning and Local Government retains a provision providing a capacity for the making of regulations regarding certain buildings and premises.

Heritage Act 1995 The Act provides a new framework for heritage protection and conservation in Victoria.

Impounding of Livestock Act 1994 The Act provides for and regulates the impounding of livestock trespassing on any land or roads across the State. It sets out who is authorised to impound, and the rights and obligations of those persons. It repeals the Pounds Act 1958 and amends other Acts dealing with impoundment of livestock on Crown land.

Land (Goonawarra Golf Course) Act 1988 The Act authorises the sale of the land known as the Goonawarra Golf Course to the municipality of the Shire of Bulla. 101 ANNUAL REPORT 1997 - 98

Libraries Act 1988 This Act is primarily the responsibility of the Minister for the Arts. The Minister for Planning and Local Government however administers Part IV, which relates to Library Purposes Trusts.

Local Government Act 1989 (Excluding sections 44-46, 48-49, section 243 in so far as it relates to municipal electoral tribunal and schedule 4 excluding clause 1(b). These provisions are administered by the Attorney General. Also excluding clauses 4 and 9 (3) of Schedule 11 and section 123 in so far as it relates to the revocation of local laws made pursuant to the powers conferred by those clauses by reason of section 207. These provisions are administered by the Minister for Roads and Ports). The Act provides administrative and legislative powers for local government, outlines the broad purpose and functions of councils, provides for electoral processes, financial, accounting and rating arrangements, establishes the Local Government Board and provides for the restructuring of councils. The Act incorporates recent amendments relating to ‘designated positions’, chief executive officers, competitive tendering, the dates of the municipal financial year, the dates of council elections, regional corporations, rates and charges, audit arrangements, electoral arrangements, the size of councils, the payment of allowances to councillors, probity requirements of councillors, the annual reports, corporate plans and budgets of councils, declaration of rates, payment of rates by new owners and a number of other measures to improve the effectiveness and efficiency of local government.

Local Government (Consequential Provisions) Act 1989 This Act provides for the necessary repeals and transitional arrangements required to implement the change from the Local Government Act 1958 to the Local Government Act 1989.

Local Government (Darebin City Council) Act 1998 The Act provides for the dismissal of the Darebin City Council and for arrangements for the election of new councillors.

Melbourne City Link Act 1995 The Act ratifies the Agreement between the State and Transurban relating to the construction and operation of the Melbourne City Link; gives the Melbourne City Link Authority certain powers in relation to land affected by the project; gives the Link Corporation certain powers in relation to roads in the project area; and empowers the fixing, charging and collection of tolls in relation to the use of vehicles on toll zones.

Melbourne City Link Authority Act 1994 The Act establishes the Melbourne City Link Authority, and facilitates the project for the development of the Southern Link and Western Link.

Melbourne City Link (Exhibition Street Extension) Act 1998 This Act provides for the Exhibition Street Extension Agreement to be ratified.

Municipal Association Act 1907 This Act provides for the establishment of the Municipal Association of Victoria as a statutory body corporate.

Municipalities Assistance Act 1973 This Act provides for the payment of moneys to councils in relation to concessional rates for pensioners.

Nudity (Prescribed Areas) Act 1983 This Act permits the establishment of optional-dress beaches in prescribed areas. 102

Planning and Environment Act 1987 The purpose of the Act is to establish a framework for planning the use, development and protection of land in Victoria in the present and long-term interests of all Victorians. It does this by establishing a system of planning scheme controls and providing for them to be amended, administered and enforced. The Act also provides for appeals to the Administrative Appeals Tribunal for compensation in certain circumstances for those who may be adversely affected by the operation of a planning scheme, and for necessary administrative arrangements.

Planning and Environment (Planning Schemes) Act 1996 This Act makes arrangements for the introduction of new planning schemes formats in Victoria.

DEPARTMENT OF INFRASTRUCTURE DEPARTMENT Planning Authorities Repeal Act 1994 The main purposes of the Act are: • to provide for the winding up of the Loddon-Campaspe Regional Planning Authority and the Upper Yarra Valley and Dandenong Ranges Authority • to repeal the Acts which established these authorities • to provide for the continuation of the approved regional strategy plan made under the Upper Yarra Valley and Dandenong Ranges Authority Act 1976.

Project Development and Construction Management Act 1994 (Parts 4, 5, 7, 8 and 9 and section 46. The remainder of the Act is administered by the Premier) The Act facilitates the delivery of infrastructure projects in which government is involved and establishes new provisions for arranging and managing public works. Important elements of the Act include the establishment of the Secretary to the DOI as a body corporate, provision for the setting of standards and the issuing of directions in relation to public construction, repeal of the Public Lands and Works Act 1964, the transfer of certain matters from the Urban Land Authority to the Secretary to DOI, amendments to the Bayside Project Act 1988 and the granting of powers to the Minister to acquire land for a nominated project.

Southgate Project Act 1994 The Act facilitates the Southgate project by making special provision for the subdivision, the integrated management of and the application of modified planning and building controls to the project land.

South Yarra Project (Subdivision and Management) Act 1985 The purpose of the Act is to provide a legal structure for the subdivision and management of certain land at South Yarra. Amendments in 1994 limited its operation to Stage 1 of the South Yarra project and made provision in relation to development contributions, rates and taxes in respect of certain lands in that stage.

Subdivision Act 1988 (Except in so far as it relates to the management of the Office of the Registrar-General and the Land Titles Office. Those provisions are administered by the Minister for Conservation and Land Management) The purposes of the Act are to set out the procedure for the subdivision and consolidation of land, including buildings and airspace, and for the creation, variation or removal of easements or restrictions, and to regulate the management of, and dealings with, common property and the constitution and operation of bodies corporate. The Act specifies the procedures for obtaining council approval, service authority approval, and registration of a wide range of subdivisions in the Office of Titles, and contains power for the establishment and operation of bodies corporate. It combines subdivision procedures previously included in the Strata Titles Act 1967, Cluster Titles Act 1974 and Local Government Act 1958, and provides for complex concepts such as staged development, multiple bodies corporate and variations to plans. 103 ANNUAL REPORT 1997 - 98

Urban Land Corporation Act 1997 The Act establishes the Urban Land Corporation to develop residential and other land in Victoria on a commercial basis.

Victoria Grants Commission Act 1976 This Act establishes the Victoria Grants Commission to distribute money allocated by the Commonwealth Grants Commission through the States to councils. 104

Acts administered by the Minister for Roads and Ports

Chattel Securities Act 1987 Part 3 (the rest of the Act is administered by the Minister for Fair Trading) This Act makes provision for security interests in motor vehicles, trailers and vessels, including registration of interests.

Local Government Act 1989 Clauses 4 and 9(3) of Schedule 11 and section 123 in so far as it relates to the revocation of local laws made pursuant to the powers conferred by those clauses by reason of section 207 of the Act. This Act provides generally for matters to do with local government in Victoria. The provisions administered

DEPARTMENT OF INFRASTRUCTURE DEPARTMENT by the Minister for Roads and Ports relate to traffic control.

Marine Act 1988 (excluding Division 2 of Part 11 which is administered by the Minister for Finance) This Act establishes the Marine Board of Victoria and provides for the objects, powers and functions of the Board. The Act also provides for registration of vessels, regulation of the operation of vessels, offences involving alcohol, prevention of pollution of State waters, the adoption of certain international conventions, enforcement of various offences through the issue of marine infringement notices and for other matters.

Pollution of Waters by Oil and Noxious Substances Act 1986 Part of the Act is administered by the Minister for Roads and Ports, part by the Minister for Conservation and Land Management, and part of the Act is administered jointly. This Act provides for the protection of the sea and other waters from pollution by oil and other noxious substances.

Port Services Act 1995 Sections 1,3,4,8,9 14, 15, 23, 24, 78(1), (3) and (4), 79-91, 94, 95, 98, and 153-196 are administered by the Minister for Roads and Ports. The Act is otherwise administered by the Treasurer, the Premier and the Minister for Finance. This Act establishes the Melbourne Port Corporation and the Victorian Channels Authority and amends various ports and marine legislation to give effect to government policies on port reform.

Road Safety Act 1986 This Act provides for the registration of motor vehicles, licensing of drivers, offences involving alcohol or other drugs and other provisions regulating the operation and use of motor vehicles.

Road Transport Charges (Victoria) Act 1995 This is the Victorian Act which adopts the national uniform road use charges for heavy vehicles.

Transport Act 1983 Part of the Act is administered by the Minister for Roads and Ports, part by the Minister for Transport, and part of the Act is administered jointly. This Act establishes and sets out the functions and powers of DOI in relation to transport matters, the PTC and the Roads Corporation. The Act also provides for the licensing of commercial vehicles and for various offences.

Westernport Development Act 1967 This Act ratifies an agreement between the State of Victoria and Hematite Petroleum Pty Ltd and Esso Exploration and Production Inc. for the construction of additional port facilities at Westernport. 105 ANNUAL REPORT 1997 - 98

Westernport (Crib Point Terminal) Act 1963 This Act assists the development and operation of a petroleum terminal at Crib Point by providing for certain existing and new easements, and clarifying the status of existing agreements relating to the pipeline running from the terminal site to Dandenong. The Act also vests Crown land used for port facilities near the terminal site in the Port of Melbourne Authority. (Note: this Act was formerly known as the Westernport (Oil Refinery) Act 1963.)

Westernport Steel Works (Development Control) Act 1970 This Act extends the municipal and regional planning area of the Shire of Hastings and declares all permits granted to John Lysaght (Australia) to be valid. 106

Acts administered by the Minister for Transport

Border Railways Act 1922 This Act ratifies an agreement between the States of Victoria and New South Wales as to the construction, maintenance and operation of railway lines and the construction and maintenance of bridges across the Murray River.

National Rail Corporation (Victoria) Act 1991 This Act approves and gives effect to an agreement made between the Commonwealth and the States of Victoria, New South Wales, Queensland and Western Australia relating to the establishment and operation of the National Rail Corporation Limited. DEPARTMENT OF INFRASTRUCTURE DEPARTMENT Public Transport Competition Act 1995 This Act provides for the accreditation of passenger bus operators and implements a system of service contracts for route service operations.

River Entrance Docks Railway Construction Act 1970 This Act authorises the construction of a railway line to connect with the line at Port Melbourne and terminating at or near the mouth of the Yarra River.

Sale (Land Development) Act 1984 This Act required the City of Sale to transfer certain lands to the State Transport Authority and makes provision for the development of land in and around the former station site.

Sale Station Relocation and Development Act 1981 This Act authorises the relocation of Sale railway station and the development of the land.

Transport Act 1983 Some of the Act is administered by the Minister for Roads and Ports, some by the Minister for Transport, and part of the Act is administered jointly. This Act establishes and sets out the functions and powers of DOI in relation to transport matters, the PTC and the Roads Corporation. The Act also provides for the licensing of commercial vehicles and for various offences.

Very Fast Train (Route Investigation) Act 1989 This Act establishes a permit system for entry to land for the purposes of survey and testing of possible routes for a very fast train.

Wattle Park Land Act 1991 This Act provides for the transfer of ownership and responsibility of Wattle Park from the PTC to the Melbourne and Metropolitan Board of Works (now known as Melbourne Water).

Legislation passed In 1997–98 The significant primary legislation passed by the Parliament during the year is summarised below. 107 ANNUAL REPORT 1997 - 98

Acts amended in 1997–98

Building (Amendment) Act 1998 This Act makes various amendments to the Building Act 1993 to improve its operation and amends the Docklands Authority Act 1991 in relation to building control matters.

Docklands Authority (Amendment) Act 1991 This Act amends the Docklands Authority Act 1991 to improve the operation of its provisions with respect to development agreements and repeals the Development Areas Act 1973 as it is redundant.

Local Government (Darebin City Council) Act 1998 The Act provides for the dismissal of the Darebin City Council and for arrangements for the election of new councillors.

Local Government (Miscellaneous Amendment) Act 1997 This Act amends the Local Government Act 1989 to modify its provisions concerning mayoral and councillor allowances, and polls and electoral matters, and repeals the Public Authorities Marks Act 1958 as it is redundant.

Melbourne City Link (Exhibition Street Extension) Act 1998 This Act provides for the Exhibition Street Extension Agreement to be ratified.

Planning and Environment (Amendment) Act 1997 This Act amends the Planning and Environment Act 1987 to confer powers on the Secretary to DOI in relation to development projects of State or regional significance.

Urban Land Corporation Act 1997 The Act establishes the Urban Land Corporation to develop residential and other land in Victoria on a commercial basis.

Transport Acts (Amendment) Act 1997 (jointly with Minister for Transport). The purpose of this Act is to improve the regulation of the towing industry, amend the Public Transport Competition Act 1995, revoke the reservation of certain lands for tramway purposes and repeal the South Australian and Victorian Border Railways Act 1930, the Kings Street Bridge Act 1957 and the Railways (Standardisation Agreement) Act 1958.

Rail Corporations (Amendment) Act 1997 The main purpose of this Act is amend the Rail Corporations Act 1996 and the Transport Act 1983 to provide for the privatisation of V/Line Freight, corporatisation of PTC train and tram services, and the accreditation of passenger transport companies.

Rail Corporations (Amendment) Act 1998 The main purpose of this Act is amend the Rail Corporations Act 1996 and the Transport Act 1983 to establish a new statutory corporation to operate rural rail passenger services, regulate access to rail and tram infrastructure, enable directions to be given to rail corporations and to provide for the appointment of an administrator to the PTC.

Transport Acts (Amendment) Act 1997 (jointly with Minister for Roads and Ports). The purpose of this Act is to improve the regulation of the towing industry, amend the Public Transport Competition Act 1995, revoke the reservation of certain lands for tramway purposes and repeal the South Australian and Victorian Border Railways Act 1930, the Kings Street Bridge Act 1957 and the Railways (Standardization Agreement) Act 1958. 108

Transport Acts (Amendment) Act 1998 This Act facilitates the sale of Victoria’s shares in the National Rail Corporation Limited, repeals the provisions of the Transport Act 1983 that restrict the carriage of goods and makes a minor amendment to the Rail Corporations (Amendments) Act 1997 regarding authorised persons.

Acts repealed In 1997–98

Historic Buildings Act 1981 This Act was repealed by section 215 of the Heritage Act 1995.

DEPARTMENT OF INFRASTRUCTURE DEPARTMENT Development Areas Act 1973 This Act was repealed by section 8 of the Docklands Authority (Amendment) Act 1997.

Urban Land Authority Act 1979 This Act was repealed by section 30 of the Urban Land Corporation Act 1997.

Public Authorities Marks Act 1958 This Act was repealed by section 21 of the Local Government (Miscellaneous Amendment) Act 1997.

Port of Geelong Authority Act 1958 This Act was repealed by section 10(1) of the Port Services (Amendment) Act 1997.

Port of Melbourne Authority Act 1958 This Act was repealed by section 10(2) of the Port Services (Amendment) Act 1997.

Port of Portland Authority Act 1958 This Act was repealed by section 10(3) of the Port Services (Amendment) Act 1997.

Railways (Standardization Agreement) Act 1958 This Act was repealed by section 37(1) of the Transport Acts (Amendment) Act 1997.

South Australian and Victorian Border Railways Act 1930 This Act was repealed by section 34 of the Transport Acts (Amendment) Act 1997. 3 FREEDOM OF INFORMATION

109 ANNUAL REPORT 1997 - 98

Principal officer Dr John Paterson Secretary Department of Infrastructure Authorised officers Department of Infrastructure Don Coulson Office of Major Projects Tracey McDonald

The files maintained by DOI are in categories: Subject files Finance files Personnel files

Main record keeping system The majority of Planning and Heritage files are held at Recall secondary storage, Port Melbourne, and are sequentially numbered depending on the category of file required (that is, between 1 and 7). The file titles are grouped under subject headings on a computerised system, called ISIP/RMS.

Town Planning Permit files are consecutively numbered with appropriate subject details recorded on the file and in a permit register.

Building Services Agency records are located on Levels 9,10 and 11, 80 Collins Street, Melbourne.

Records no longer in current use are transferred to Recall secondary storage, Port Melbourne. Records of historical value are transferred to the custody of the Public Records Office or destroyed under the appropriate authority.

Local government records are held at Recall secondary storage, Port Melbourne and, unless of a general nature, are grouped under individual municipality headings. Files are also cross-indexed under subject matter. The Office of Local Government operates a computerised file registry (RecWin) and files are numbered sequentially prefixed by the year (that is, 96/0001).

Office of Major Projects records are held on Level 18, 80 Collins Street, Melbourne, and are grouped under subject headings on a computerised system.

Transport documents are held at Recall secondary storage, Port Melbourne. Documents are generally held on subject-based files maintained by the registry section. Control of these records is by a computerised records management system called RecWin; indexing is computerised and is subject and name-based.

In addition to this filing system, individual sections of DOI maintain separate files of material for reference purposes. The accounts, stores and pay, the bus group, the Taxi Directorate, and the Tow Truck Directorate maintain their own operational records.

Roads and Ports documents are registered on DOI’s records management system. DOI’s records management strategy is for all records to be registered on one system and for information to be readily accessible to all staff.

FOI access arrangements

Requests for access to records of DOI (including requests for access to documents kept at district centres and country branches) are handled centrally by the FOI Manager. 110

All requests should be made in writing and include the following information: Full name of person making request Address and telephone number of person making request Type of access requested (that is, inspection, photocopy or other form of access appropriate to request).

Sufficient information to identify the document(s) (see below) Requests should be accompanied by a $20 application fee and sent to: The FOI Manager Department of Infrastructure GPO Box 4910 Melbourne 3001

DEPARTMENT OF INFRASTRUCTURE DEPARTMENT Telephone:(03) 9655 6718

Upon receiving the request, the FOI Manager will forward a receipt and an acknowledgment to the applicant.

Identification of documents A request can relate to a single paper, or an entire file or information gathered from a computer or other equipment as set out in Section 5 of the Freedom of Information Act. Requests must contain sufficient detail concerning the document to enable DOI to identify it. Information about the document’s subject and date should be indicated as precisely as possible. Where a request does not provide the necessary information to identify a document, the FOI Manager will assist the applicant to clarify the request to aid in identifying the document sought.

Charges A charge may be levied prior to granting access to the document. All charges will be calculated in accordance with the Freedom of Information Act 1982 and the Freedom of Information (Access Charges) Regulations 1993. In general, these charges are: Application fee $20 must accompany request Photocopy fees 20 cents per A4 page Search fees where DOI has to identify and locate documents: $20 per hour Supervision fees where a document is inspected by an applicant within DOI: $5 per 15 minutes Deposits where charges will be substantial, a deposit of $50 may be requested before processing a request

Charges, other than the application fee, are not levied if the applicant is a Member of Parliament, or if the documents sought relate to the personal affairs of the applicant. Charges may be waived or reduced if availability of the information is assessed as in the public interest or if the applicant is impecunious (Section 22). The application fee ($20) can only be waived on the grounds of hardship.

Processing of requests If all, or a portion, of the document requested is exempt from disclosure under Part IV of the Act, the applicant will be notified in writing of this determination. This notice (under Section 27 of the Act) will inform the applicant of the reasons for the determination and of the rights of review under the Act. Where the subject matter of a document requested is more closely connected with the functions of another department or agency, the request may be transferred (Section 18). Authorised officers responsible for FOI decisions are required to notify an applicant of the decision within 45 days of receipt of the $20 application fee or, where this fee has been waived, on receipt of evidence of hardship. 111 ANNUAL REPORT 1997 - 98

If access to the requested document is granted, the applicant will be informed of this decision and of any charges that may be due. After payment of the required charges, access will be provided.

Normally, photocopies of requested documents will be mailed to the applicant.

Inspection of documents will usually take place at DOI’s offices at 80 Collins Street, Melbourne. However, alternate inspection locations may be arranged.

Further information may be obtained from: Freedom of Information Act 1982 Freedom of Information handbook Freedom of Information (Access Charges) Regulation 1993 Freedom of Information (Prescribed Authorities) Regulations 1993 which are available from the Information Victoria Bookshop. 4 LOCAL GOVERNMENT

112

Municipal electoral tribunals No tribunals held for the period 1997–98.

Municipal enterprise projects approved in 1997–98

Municipality and Project Status Structure Exemptions Head of Employment project description value $m power

Maribyrnong City Council n.a. Approval for the Company limited S193S193 S193 1 (perm.) To establish and participate council to become by guarantee 25 (casual) in a company known as a member of and to Maribyrnong Events Limited, participate in the DEPARTMENT OF INFRASTRUCTURE DEPARTMENT which is responsible for operation of the producing and managing the company Maribyrnong Festival

Melbourne City Council 10.0 Approval for the Union of interest/ S146, 186, S193 n.a. To vary the agreement with Council to vary the company limited 189 and 190 Staged Developments arrangements as by shares Australia Pty Ltd in relation detailed in the to the Regent Theatre and approval given in the development of the April 1994 City Square Site

Melbourne City Council 22.0 Approval for the Union of interest S146, 186 S193 n.a. To participate in a union of council to enter and 189 interest with the Republic of into the union of Nauru to develop the interest agreement Queen Victoria Hospital Site

Wodonga Rural City Council n.a. Approval for the Company limited S193 13 To establish and participate in council to become by guarantee a company known as Albury a member of and Wodonga Limited, which is to participate in responsible for promoting the operation of business and tourism in the the company Albury Wodonga Region

Late annual reports Councils and regional library corporations are required to submit annual reports within three months of the end of the financial year. Sections 126(5) and 196(7)d of the Local Government Act 1989 require the Minister for Planning and Local Government to report any council or regional library’s failure to submit its annual report within the time allowed. The Moira Shire Council failed to submit its 1996-97 annual report. All regional libraries submitted their 1996-97 annual reports within the required time. 5 MULTICULTURAL SERVICES

113 ANNUAL REPORT 1997 - 98

VicRoads – multicultural services usage data Testing in languages other than English

Interpreter tests Interpreters Computer learners tests Albanian 145 Amharik 138 Arabic 150 3,274 Armenian 5 Assyrian 71 Auslan 1 Bengali 5 Bosnian 5 Bulgarian 5 Burmese 35 Cambodian 14 729 Cantonese 81 Chaldean 40 Croatian 35 1,489 Czech 6 Dari 72 Dutch 2 Estonian 1 Filipino 191 French 17 German 92 Greek 28 515 Hakka 26 Hararic 17 Hebrew 16 Hindi 91 Hmong 29 Hokkien 1 Hungarian 30 Indonesian 99 Italian 22 375 Japanese 72 Korean 70 Kurdish 11 Laotian 16 61 Lingala 1 Macedonian 31 886 Maltese 12 Mandarin 34 7,303 Oromo 43 Persian 92 Polish 7 274 Portuguese 47 Punjabi 95 114

VicRoads - multicultural services usage data continued

Interpreter tests Interpreters Computer learners tests Pushtu 49 Romanian 19 254 Russian 10 629 Samoan 41 Serbian 38 1,437 Sinhalese 183 Slovak 4 Somali 221 DEPARTMENT OF INFRASTRUCTURE DEPARTMENT Spanish 24 818 Tamil 133 Teocheow 11 Tetum 6 Thai 127 Tigrigna 86 Tongan 16 Turkish 40 1,874 Ukrainian 6 Urdu 30 Vietnamese 54 1,874 Total 3,007 21,884

Ethnic child restraint program In November 1997, a child restraint program was launched to explain the importance of securing children safely in motor cars. The campaign was targeted at 14 ethnic communities using language brochures and ethnic newspaper advertising.

Public transport Literature in Arabic, Greek, Italian, Maltese and Vietnamese was produced for people with special needs.

Local government During 1997–98 DOI again co-sponsored an annual forum focused on the role of local government in the delivery of services to a linguistically and culturally diverse community. This year, with co-hosts the Victorian Multicultural Commission and the Multicultural Affairs Unit of the Department of Premier and Cabinet, DOI contributed to the presentation of an information sharing forum in Echuca. Representatives of local communities and local government agencies particularly gained from the examples of multicultural programs and policies which were presented. 6 STATUTORY AUTHORITIES AND OTHER BODIES

115 ANNUAL REPORT 1997 - 98

Architects Registration Board of Victoria Chairperson: Mr Peter Williams

Role of organisation Major achievements for 1997–98 • Parliamentary Counsel approved regulations and will be The Board’s role is to administer the Architects Act 1991 considered as part of the National Competition Policy and regulations made under the Act. Review of the Architects Act • assessed and registered almost as many architects as The Act requires the Board to: the rest of Australia combined • maintain a register of architects, including architectural • approved a substantial list of overseas qualifications as companies and partnerships equivalent to Australian degrees, to assist with faster • regulate the professional conduct of architects registration of recent arrivals and remove any cost • regulate the use of the words architect, architecture, burden of review and architectural to ensure that any person or firm • finalised a review of professional practice requirements claiming those titles, or who use them, is properly for intending architects, widening the scope for able to do so. exceptions from further assessment and removing costs Arising from these responsibilities, the Board assesses • part-sponsor of the Architects International lecture architects for suitability for registration and assesses and series, which focused on urban design accredits courses for architecture. • published a policy statement relating to breaches of the Architects Act, to assist the public and architects in Staff: 1 exec., 3 non-exec. understanding how decisions are arrived at and to provide a formal statement of the Board’s position for the Victorian Civil and Administrative Tribunal • approved the new Master of Architecture stream at Deakin University as an appropriate course to lead to registration – the first in Australia. 116

Building Control Commission Chairperson: Mr Max Croxford, Commissioner

Role of organisation Major achievements for 1997–98

Administers the Victorian building regulatory system, and Achieved Parliamentary passage of miscellaneous legislative reports to and advises the Minister for Planning and Local amendments to the Building Act 1993. Government on all building control matters. • introduced a number of amendments to the Building Regulations 1994, including requirements for the Staff: 4 exec., 61 non-exec. upgrade of fire safety in existing residential care buildings

DEPARTMENT OF INFRASTRUCTURE DEPARTMENT • provided significant input to Amendments 2 and 3 of the Building Code of Australia (BCA) • introduced adoption of the performance BCA in Victoria providing greater innovation and cost effectiveness in building construction • undertook 30 building practitioner prosecutions, with all cases being proved • introduced a program of random building practitioner compliance audits from February 1998, with 111 full audits completed • conducted a series of training seminars on the BCA 96 for building practitioners throughout Victoria • successfully completed a consultancy for the Municipality of Dubai in the United Arab Emirates to establish a new building code and revised operational procedures • completed in partnership, a research project regarding smoke control in open spaces in buildings • commenced in partnership, a research program to determine the efficiency of lifts for emergency evacuation of disabled people from multistorey buildings • undertook a ‘use an RBP’ (Registered Building Practitioner) promotional campaign on TV and in local press • supported attainment of best practice in the building industry through sponsorship of seven building awards • participated in excess of 100 building industry information seminars, conferences and trade nights • determined building approvals at AFL grounds at a value of $2 million • issued 17 temporary structure permits for events such as Elton John/Billy Joel concert and the Great Moscow Circus. 117 ANNUAL REPORT 1997 - 98

Building Advisory Council Chairperson: Mr Max Croxford, Commissioner

Role of organisation Major achievements for 1997–98

Advises the Minister for Planning and Local Government on • provided advice on the development of the Building administration and impact of the Building Act 1993 on the (Amendment) Act 1998 building industry and the community, and also on issues • contributed to the review of arrangements to further relating to the building permit levy. improve co-ordination between planning and building approvals Staff: staffed from the Building Control Commission. • contributed to the review of processes to minimise data collection requirements on builders by government.

Building Regulations Advisory Committee Chairperson: Mr Max Croxford, Commissioner

Role of organisation Major achievements for 1997–98

Advises the Minister for Planning and Local Government on • advised on the preparation of draft Building draft regulations. Provides accreditation of building Amendment Regulations 1998 products, construction methods, designs and components • advised on the preparation and finalisation of and systems associated with building works. Amendments 2 and 3 to the Building Code of Australia • advised on the building access provisions for people Staff: staffed from the Building Control Commission. with disabilities • advised on the preparation of five Practice Notes for distribution to building practitioners • accredited seven building products and designs.

Building Practitioners Board Chairperson: Mr Brian Morison

Role of organisation Major achievements for 1997–98

Administers the registration of all building practitioners in • presided over the efficient registration of building Victoria. Monitors their conduct and their ability to practise. practitioners which showed 19,726 registered at 30 June 1998 Staff: staffed from the Building Control Commission. • completed five formal inquiries into the conduct of building practitioners • completed a review of domestic builder registration processes in Australia preparatory to enhancing domestic registration criteria in Victoria. 118

Building Appeals Board Chairperson: Mr Paul Gardner

Role of organisation Major achievements for 1997–98

Determines disputes and appeals arising from the Building • determination of 154 appeals and disputes, of which Act 1993. Determines applications for modification of the 96 per cent were signed on the same day building regulations. • determination of 1,279 applications for modifications to the building regulations, of which 94 per cent were Staff: staffed from the Building Control Commission. signed on the same day • reviewed and amended Board procedures to better accommodate introduction of performance-based BCA DEPARTMENT OF INFRASTRUCTURE DEPARTMENT and section 160A of the Building Act.

Docklands Authority Chairperson: Mr Eric Mayer AM

Role of organisation Major achievements for 1997–98

The Docklands Authority’s mission is to plan, lead, promote, • the Docklands Authority executed unconditional and manage and integrate the successful development, conditional development agreements with private-sector management and operations of Melbourne Docklands as a developers, which represent an investment in Melbourne waterfront place of character and quality in which to live, Docklands in excess of $2 billion over a 10-15 year period work and visit, creating both a tourism asset and a boost to • construction of the $430 million Docklands Stadium by Victoria’s pride and success. Stadium Management Limited commenced in September 1997 and is scheduled for completion Staff: 6 exec., 21 non-exec. in February 2000 • the agreement for the Yarra Waters Precinct development by the Mirvac Group was executed and site works are scheduled to commence in October 1998. Mirvac’s $650 million scheme includes 2,000 medium and highrise residential apartments, marina, retail and commercial elements • YarraNova has executed a conditional agreement for a $600 million residential, commercial, retail, restaurant, marina and entertainment development over 12 years. Entertainment City has also executed a conditional agreement to develop a $350 million movie theme park, film studio and entertainment project to be opened by 2001. • Victoria Harbour Consortium has been appointed as the preferred developer for the Victoria Harbour Precinct and is negotiating to develop a $1.2-1.5 billion, 10-year residential, retail and commercial development. If the negotiations are not successful, the Docklands Authority has indicated the site will be offered in smaller parcels as part of a separate public process 119 ANNUAL REPORT 1997 - 98

Docklands Authority continued

Role of organisation Major achievements for 1997–98

The Docklands Authority’s mission is to plan, lead, promote, • construction of trunk infrastructure services by manage and integrate the successful development, Transfield-Powercor into Melbourne Docklands management and operations of Melbourne Docklands as a commenced in August 1998, with major works for waterfront place of character and quality in which to live, completion prior to the opening of the Docklands work and visit, creating both a tourism asset and a boost to Stadium in 2000. Victoria’s pride and success. • two proposals are in completion for the right to develop the Batman’s Hill Precinct. Grollo Tower Pty Ltd Staff: 6 exec., 21 non-exec. proposes to build the world’s tallest building and YarraCity Ltd propose a multimedia, sports and retail activities, including ‘Cyberia’, housing new high-tech companies, new generation small office/home office accommodation. It also prosposes a ‘TEC Shed’, showcasing new and emerging technologies and an 8,000-seat venue for ice skating and other sports • Network 7 is finalising its proposal to develop a new digital studio and Victorian headquarters on the north-western perimeter of the new stadium • the Docklands Stadium Consortium has submitted a proposal to develop the remainder of the Stadium Precinct. The proposal comprises a variety of sports, entertainment, leisure, restaurant and retailing facilities around the perimeter of the Docklands Stadium • expressions of interest were called in April 1998 from a broad public base of research institutions and corporations for the development of a ‘Technoventure’ in the Technology Park Precinct • tenders were called in July 1998 for the remediation of the former West Melbourne Gas Works site. 120

Heritage Council Chairperson: Dr Jan Penny

Role of organisation Major achievements for 1997–98

The Heritage Act 1995 established a Heritage Council • the approval of more than $1,172,822 in loans and appointed by the Governor-in-Council upon the recom- grants to owners of registered heritage properties mendation of the Minister for Planning and Local Government. across the State. The money will be used for urgent restoration and repair work and will create a catalyst Comprising 10 members, with specific expertise and interests for the enhancement of whole streets or and representing a broad cross-section of the community, neighbourhoods. The restoration of historic buildings the Heritage Council is the State’s main decision-making and general enhancement of historic areas also adds to

DEPARTMENT OF INFRASTRUCTURE DEPARTMENT body on heritage issues. the tourist and economic potential of regional Victoria The Heritage Council: and instils pride in local communities • advises the Minister of Planning and Local Government • the comprehensive heritage assessment of more than on heritage issues 308 places across Victoria, with 424 places included to • determines which heritage places and objects are the Victorian Heritage Register (including Government added to the Victorian Heritage Register Building Register and Victorian Heritage Register). • hears appeals on permit applications determined by • alterations and developments to registered heritage the Executive Director places were facilitated by Heritage Victoria with 373 • approves or rejects recommendations for loans and approvals for alterations to registered heritage places grants from the Heritage Fund. being granted.

Staff: 2 non-exec.

Marine Board of Victoria Chairperson: Captain John Bicknell

Role of organisation Major achievements for 1997–98

The Board was established under the Marine Act 1988 and • appointed a new chief executive, conducted a client is responsible for developing and maintaining standards of satisfaction survey, restructured the organisation to seaworthiness of Victorian commercial vessels, the create two core businesses – Commercial Shipping competence of their crews, and navigation and safety on and Recreational Boating – and introduced a new Victorian waters. corporate image • audited oil-spill response arrangements, implemented The Board licences pilots and harbourmasters and, in regional marine pollution contingency plans, and consultation with the Environment Protection Authority, has introduced an incident control system for oil-spill responsibility for ensuring an effective response to oil response management pollution incidents in State waters. • promulgated new standards for provision and maintenance of navigation aids and dredging and The Board services the State Boating Council, which advises maintenance of channels. Issued revised codes for the Minister for Roads and Ports on all aspects of training and licensing of marine pilots, and training recreational boating and certification of pilot-exempt masters Staff: 2 exec., 18 non-exec. • reviewed marine incident investigation procedures and appointed a panel of independent marine incident inspectors. Investigated six serious marine incidents and issued four marine notices based on investigation findings 121 ANNUAL REPORT 1997 - 98

Marine Board of Victoria continued

Role of organisation Major achievements for 1997–98

• consolidated and simplified boating rules and established a regulation enforcement agreement with the Victoria Water Police. Raised boating safety awareness through a summer media campaign and exhibitions at boat and fishing shows • developed boating facilities construction guidelines and implemented a boating facilities signing program. Established an agreement with VicRoads for motor boat registration services • contributed to the national marine safety reform program which achieved the publication of a national marine safety strategy, introduction of competency-based training through accredited providers for the marine industry, and mutual recognition of vessel certificates of survey throughout Australia.

Melbourne City Link Authority Chairperson: Mr John Laurie

Role of organisation Major achievements for 1997–98

The Melbourne City Link Authority is a single purpose • 40,000 Victorians visit the City Link Domain Tunnel agency with a clearly focused mission to facilitate the City during the Government’s Open Weekend Link project. It does this on the basis of a private-sector • announcement by the Minister for Planning and Local build, own, operate and transfer undertaking. Government that NEC Australia has won a $15 million contract to manufacture electronic tags for vehicles using City Link • contract for the financing of the Exhibition Street Extension project agreed between the State and Transurban and coming into operation of four agreements amending the Melbourne City Link Agreement • commencement of Transurban tag trial on the Tullamarine section of the City Link • passage of Melbourne City Link (Exhibition Street Extension) Act 1998 • 21,000 visits to the City Link Information Centre, bringing the total number of visits since the centre opened in March 1996 to more than 29,000. 122

Plumbing Industry Board Chairperson: Mr Michael Kefford

Role of organisation Major achievements for 1997-98

The Plumbing Industry Board consists of eight members • introduced a comprehensive scheme of self-certification representing industry bodies, water agencies, consumers of plumbing work by licensed plumbers. Licensed and plumbers. plumbers must now carry comprehensive non-cancellable consumer protection insurance cover before they can Staff: 8 exec., 37 non-exec. be issued a licence. They must certify their work via a certificate of compliance, which is the customer’s proof

DEPARTMENT OF INFRASTRUCTURE DEPARTMENT of 10 years of cover on the workmanship performed • introduction of an interactive voice response communi- cation system to enable plumbers to conduct business with the Board 24 hours a day, seven days a week directly with the Board’s computer database. One-third of all calls are taken outside normal business hours • a network of more than 140 Certificate-of-Compliance sales points were established, which, together with 24-hour telephone-to-computer purchase option enables certificates to be easily available to all licensed plumbers across Victoria • the Board also assumed responsibility for regulation of water, sanitary and drainage work for the State of Victoria; this role was previously carried out by 21 independent water agencies.

Public Transport Corporation Chairperson: Mr Lindsay Maxsted

Role of organisation Major achievements for 1997-98

TThe PTC operates trains, trams and buses in the Melbourne • the PTC successfully hosted AusRail 97, Australia’s metropolitan area and passenger services in rural Victoria. major rail industry conference, which attracted more than 800 delegates and 87 exhibitors using 7,500 m2 Formed on 1 July 1989, the PTC aims to provide safe and of exhibition space reliable services that recognise the needs and interests of • metropolitan patronage grew 234.4 million boardings both customers and Victorian taxpayers. • revenue from passenger services grew by 1.3 per cent to $356 million The PTC has an annual turnover from customers in excess of • the automated ticketing system was progressively $505 million and has more than 240 million passenger introduced across the metropolitan rail, tram and bus boardings. network without any disruption to the service Staff: 42 exec., 7,010 non-exec. • as part of the Jolimont Rationalisation Project, the Flinders Street stabling yards were closed and new train maintenance facilities were opened at Bayswater, Westall and Burnley • major works were carried out at Flinders Street Station as part of a $24 million redevelopment works of the station 123 ANNUAL REPORT 1997 - 98

Public Transport Corporation continued

Role of organisation Major achievements for 1997-98

• V/Line country services carried 7.5 million passengers, building on five years of solid growth • in preparation for corporatisation and eventual privatisation of the five passenger businesses, a major restructure was carried out. Bayside Trains, Hillside Trains, Swanston Trams, Yarra Trams and V/Line Passenger businesses were established. Engineering Services was formed from the former Rail Vehicle Maintenance and Infrastructure divisions. Development of corporate support and engineering support services also occurred as part of the restructure • the Met Bus business was sold in April to Melbourne Bus Link • safety standards continued to improve with all businesses achieving at least a three-star rating.

Roads Corporation (VicRoads) Chairperson: Mr Colin Jordan

Role of organisation Major achievements for 1997-98

The Roads Corporation serves the community by managing • completed the Eastern Freeway Extension between the Victorian road network and its use as an integral part of Doncaster Road, North Balwyn and Springvale Road, the overall transport system. Nunawading; opened the final stage of the Ballarat Bypass; completed the Calder Freeway/Bulla-Diggers Staff: 66 exec., 2,347 non-exec. Rest Road interchange and a further six km of the Calder Freeway between Gisborne South and Gisborne; completed sealing of the final 12 km of the Great Alpine Road between Dinner Plain and Horsehair Plain. These will boost economic productivity, community amenity and road safety in Victoria • commenced implementation of the second round of reforms in the National Heavy Vehicle Reform package. Reforms introduced included management of speeding heavy vehicles, the extension of National Heavy Vehicle charges to primary producers and the introduction of short term registration for certain heavy vehicles • implemented the Government’s Safety First road safety strategy, targeting high risk groups and behaviours through research, education, enforcement, promotion and engineering • opened Sunshine registration and licensing office, offering state-of-the-art technological features 124

Roads Corporation (VicRoads) continued

Role of organisation Major achievements for 1997–98

The Roads Corporation serves the community by managing • opened Sunshine registration and licensing office, the Victorian road network and its use as an integral part of offering state-of-the-art technological features the overall transport system. including single-point service, touch-screen computers and instant photo licences Staff: 66 exec., 2,347 non-exec. • introduced electronic service delivery for registration renewal, licence test booking and obtaining driver history and demerit points records. DEPARTMENT OF INFRASTRUCTURE DEPARTMENT

Victoria Grants Commission Chairperson: Mr John Lester

Role of organisation Major achievements for 1997–98

The Victoria Grants Commission operates under the Victoria • allocated $208.9 million of financial assistance grants Grants Commission Act 1976. The role of the Commission is and $76.5 million of local roads funding to to determine allocations of Commonwealth general purpose municipalities throughout Victoria. All funding is grants to councils in accordance with the principles under untied as to its application the Local Government Financial Assistance Act 1995. These • further developed the methodology for the distribution principles were developed in consultation with State and of grants. local governments.

The principles and distribution methodology for the financial assistance grants and local roads are set out in the 1996-97 Annual Report of the Victoria Grants Commission.

Staff: 2.5 non-exec. 7 MAJOR PUBLICATIONS 1997-98

125 ANNUAL REPORT 1997 - 98

Building Information Sheet No. 18 Making Choices Making Choices: Qualification Criteria for addressing Building and Construction Industry Suppliers Ministerial Direction No. 2: Guide to Contractual Provisions for Public Construction, Issue 3

Corporate 1997-1998 Business Plan 1997-1998 Corporate Plan Bookshop catalogue Creating Prosperity: Victoria’s Capital City Policy Annual Report 1996-97 Department of Infrastructure Annual Report 1996-97 Department of Infrastructure 1997-2000 Infrazine Issues 5, 6, 7, 8 and 9

Corporate Finance In the Money Issue No. 1

Heritage An archaeological survey of sealing and whaling sites in Victoria Heritage Council Victoria Annual Report 1996-97 Inherit issues 3 and 4 Procedures Manual for Local Authority Determinations Scuttlebutt, four issues Warrock

Land monitoring Policy and instructions on the purchase, compulsory acquisition and sale of land

Office of Local Government Annual Survey of Victorian Public Libraries Darebin City Council Commission of Inquiry Directory of Public Library Services in Victoria 1997 Draft Guidelines for Implementing Competitively Neutral Pricing Principles in Local Government Local Government Directory Local Priority Funding for Victorian Public Libraries Mildura Rural City Council Review Nestlé Write Around Australia - Zone Winners 1997 Nillumbik Shire Council Commission of Inquiry Patterns in Local Government Review of Councillor and Mayoral Allowances Swan Hill Rural City Council Review Telecommunications Support for Professional Development Programs for Rural Libraries Network Victoria Grants Commission Annual Report 1996-97 Victorian Local Government Guidelines for Review of Local Law Restrictions on Competition Working together in catchment management: local government and catchment management authorities 126

Office of Major Projects Agenda 21 Quarterly Issues 14, 15, 16 Information Bulletin: Jolimont Projects

Planning 1997 Municipal Fact Sheets on Residential Development A Better Future for Victorians - Design, Diversity, Development Statement August 1997 A ‘Good Neighbour’ Code of Practice for a Circus or Carnival Changing Faces of Melbourne: Residential Land Release Forecast: All of Melbourne 1997 Consolidating Our City - Redevelopment in Melbourne (2nd issue) Freeway Service Centres: design guidelines DEPARTMENT OF INFRASTRUCTURE DEPARTMENT From Doughnut City to Café Society How to get the best out of planning: a guide to facilitating meetings Making a Neighbourhood Agreement Manual for the Victoria Planning Provisions Medium-density housing and residential development Action Plan Melbourne in Fact 1996 Census Statistics for Melbourne’s Local Government Areas Ministerial Direction on the Form and Content of Planning Schemes Ministerial Directions under Section 12 (2) (a) Planning for the future Planning Reform News Nos. 8, 9 Pride of Place; an urban design program for Victoria Regional Victoria in Fact 1996 Census Statistics for Melbourne’s Local Government Areas Report of the Advisory Committee on the Victorian Planning Provisions Research Matters Vol. 1 No. 4 Residential Land Bulletin (quarterly) The Good Design Guide for Medium-density Housing Revision 2. Site Analysis and Design Response Victoria in Fact - Interim Report 1996 Census Statistics for Victoria Victoria Planning Provisions (last amended 26 March 1998) Victorian Population Bulletin Issues 2 and 3 Your Street Your Say

Transport Easygoing Newsletter Issue 1 Public Transport Community Consultative Committees 1997 Annual Report Regulatory Impact Statement for Transport (Rail Safety) Regulations 1998 The Met Station Access Guide for older people and those with disabilities (a separate version for each railway line) 8 COMPETITION POLICY

127 ANNUAL REPORT 1997 - 98

Review of legislative restrictions on competition

As part of the National Competition Policy agreements signed by the Council of Australian Governments in April 1995, all governments agreed to adopt the following guiding legislative principle: • Legislation should not restrict competition unless it can demonstrated that: • the benefits of the restriction to the community as a whole outweigh the costs • the objectives of the legislation can only be achieved by restricting competition.

To give effect to this principle, governments have agreed to: • review and, where appropriate, reform all existing legislative restrictions on competition against the guiding legislative principle • ensure that all new legislative proposals are assessed against the principle.

The Victorian Government Timetable for Review of Legislative Restrictions on Competition, published in June 1996, contains major legislation relating to transport, ports, roads, local government, planning and heritage (including local laws, planning schemes and regulations). All reviews and reforms are required to be completed before 2000.

Current situation

A DOI steering committee, established in accordance with the Cabinet guidelines, oversees the legislation review program within DOI. The committee has now completed preliminary assessment of all legislation nominated for review and several Acts are currently examined under an independent review process.

Progress achieved in respect of legislation scheduled for review in 1997–98

Legislation which has undergone the review process include: • Bourke Street Mall Act 1982 • City of Greater Geelong Act 1993 • City of Melbourne Act 1993 • Cultural and Recreational Lands Act 1994 • Local Government Act 1989 • Public Authorities Marks Act 1958 • Project Development and Construction Management Act 1994 • Environment Effects Act 1978 • Urban Land Authority Act 1979 • Chattel Securities Act 1987 • Road Safety Act 1986 • Pollution of Waters by Oil and Noxious Substances Act 1986 • Transport Act 1983 Part 6: Division 6 (Private Omnibuses) Part 6: Division 7 (Hire and Drive Omnibuses) Part 6: Division 9 (Commercial Goods Vehicles) • Railways (Standardisation Agreement) Act 1958 • South Australian and Victorian Border Railways Act 1930 128

Competitive neutrality

The Victorian Government Statement on Competitive Neutrality, published in June 1996, sets out the policy and implementation timetable for extending competitive neutrality (CN) policies to other areas of government business activity to ensure that those businesses do not enjoy net competitive advantages over private businesses simply as a result of public ownership. It also sets out conditions under which CN policies will apply to tax-funded activities within the government sector.

The Statement describes two models for applying CN policies: Model 1 - corporatisation, and Model 2 - structural and pricing principles reflecting full cost. Within DOI, the following activities are listed as significant business activities to which Model 2 should apply. DEPARTMENT OF INFRASTRUCTURE DEPARTMENT Application by DOI of CN principles to significant government business activities:

Significant government business activity of DOI Status of application of CN

VicRoads arrangements for compliance with Model 2 have • Land information survey been developed and are in place • Road and bridge design • Bituminous surfacing

• Printing services arrangements for compliance with Model 2 have been developed and are in place

Building Services Agency CN pricing principles are fully implemented. Full cost attribution is reflected in Operating Statement

Application of competition policy to local government

The Minister for Planning and Local Government is responsible for ensuring that councils comply with the National Competition Policy annual reporting requirements, with respect to progress in reviewing and reforming legislative restrictions on competition and regarding the implementation of CN principles.

The policy statement on the Application of Competition Policy to Local Government, published in June 1996, was prepared by a joint State/Local Government Working Group and in consultation with all local councils and other stakeholders. It examines all aspects of the National Competition Policy and its applicability to local government. The key requirements for local government are: • from 1 July 1996, all Victorian councils are subject to Competition Code (part IV of Trade Practices Act) • in 1996-97 and subsequent years, councils are to tender 50 per cent of total expenses • from 1 July 1997, councils are to apply CN policies to their business activities, including pricing principles to all in house bids. Complaints of non-compliance to be investigated by DOI • from September 1997, councils are to report annually on implementation of CN principles • by July 1998, councils are to have corporatised approved significant business activities, and corporatised entities to be subject to Statewide complaints mechanism • from July 1997, all new local laws are to comply with competition principles • by June 1999, councils are to review and reform local laws restrictions on competition.

DOI, in conjunction with the Department of Premier and Cabinet, is assisting the local councils to undertake local laws reviews by the preparation of Guidelines and conducting workshops on the application of these Guidelines to local laws. 9 OTHER AVAILABLE INFORMATION

129 ANNUAL REPORT 1997 - 98

Other available information:

The Directions of the Minister for Finance pursuant to the Financial Management Act 1994 require a range of information to be prepared in relation to the financial year. This material is itemised below and, where not published in this report, is retained by the accountable officer and can be made available to Ministers, Members of Parliament and the public on request, subject to the limitations of the Freedom of Information Act 1982. • declarations of pecuniary interests completed by all relevant officers of DOI for the year ended 30 June 1998 • details of shares held by senior officers as nominees or held beneficially in a statutory authority or subsidiary • details of publications produced by DOI and where the publications can be obtained • details of changes in prices, fees, charges, rates and levies charged by DOI • details of major external reviews carried out on DOI • details of major research and development activities undertaken by DOI • details of overseas visits, including a summary of the objectives and outcomes of each visit • details of major promotional, public relations and marketing activities undertaken by DOI to develop community awareness of DOI and the services it provides • details of assessments and measures undertaken to improve the occupational health and safety of employees • a general statement on industrial relations within DOI and details of time lost through industrial accidents and disputes • a list of the major committees sponsored by DOI, the purpose of each committee and the extent to which the purpose has been achieved.

Building Act compliance

The Directions of the Minister of Finance requires this Annual Report to include a statement on the extent of compliance with the building and maintenance provisions of the Building Act 1993, for publicly-owned buildings controlled by DOI. DOI does not own or control any government buildings. 10 COMPLIANCE INDEX

130

The Annual Report of DOI is prepared in accordance with the Financial Management Act 1994 and the Directions of the Minister for Finance. This index is to facilitate identification of compliance with statutory disclosure requirements and refers to clauses in the Directions of the Minister for Finance.

Clause Disclosure Page

Report of operations

Charter and purpose 9.1.3 (i) (a) Manner of establishment and Ministers iii, iv, 1 9.1.3 (i) (b) Objectives, functions, powers and duties 1 9.1.3 (i) (c) Nature and range of services provided 1 DEPARTMENT OF INFRASTRUCTURE DEPARTMENT

Management and structure 9.1.3 (i) (d) (i) Name of Secretary iii 9.1.3 (i) (d) (ii) Names of senior office holders and brief description 1, 2 of responsibility 9.1.3 (i) (d) (iii) Chart setting out organisational structure 2

Financial and other information 9.1.3 (i) (e) Statement of workforce data and merit and equity 132–134 9.1.3 (i) (f) Application and operation of Freedom of Information 109–111 9.1.3 (ii) (a) Summary of the financial results for the year 55, 56 9.1.3 (ii) (b) Significant changes in financial position during the year 55, 56 9.1.3 (ii) (c) Operational and budgetary objectives and performance 89–98 against objectives 9.1.3 (ii) (d) Major changes or factors affecting achievement 89–98 9.1.3 (ii) (e) Events subsequent to balance date that may have a 84 significant effect 9.1.3 (ii) (f) Details of consultancies over $100,000 135 9.1.3 (ii) (g) Details of consultancies under $100,000 135 9.1.3 (ii) (h) Compliance with building and maintenance provisions 129 9.1.3 (ii) (i) Statement of availability of other information 129 9.1.3 (ii) (k) Statement on competition policy 127, 128 131 ANNUAL REPORT 1997 - 98

Clause Disclosure Page

Financial Statements

Operating Statement 9.2.3 (ii) (a) Operating revenue by class 59 9.2.3 (ii) (c) Net cost from disposal of non-current assets 59, 73, 74 9.2.3 (ii) (e) Depreciation 59, 73 9.2.3 (ii) (f) Bad and doubtful debts 70, 74 9.2.3 (ii) (g) Financing cost (capital charge) 59, 72 9.2.3 (ii) (i) Audit expense 70

Balance Sheet 9.2.3 (iii) (a) (i) Cash at bank and trust funds 61, 62, 74, 76 9.2.3 (iii) (a) (ii) Inventories 61, 63 9.2.3 (iii) (a) (iii) Receivables, including trade debtors, loans and other debtors 61, 74 9.2.3 (iii) (a) (iv) Other assets, including prepayments 61 9.2.3 (iii) (a) (v) Investments 79 9.2.3 (iii) (a) (vi) Property, plant and equipment 61, 73 9.2.3 (iii) (b) (iii) Trade and other creditors 61, 75 9.2.3 (iii) (b) (v) Provisions, including employee entitlements 61, 75 9.2.3 (iii) (d) Reserves, and transfers to and from reserves 61

Statement of Cash Flows 9.2.2 (i) (c) A statement of cash flows during the year 62

Notes to the Financial Statements 9.2.3 (iv) (b) Contingent liabilities 81 9.2.3 (iv) (c) Commitments for expenditure 80 9.2.3 (iv) (d) Government grants received or receivable 59, 69, 70 9.2.3 (iv) (e) Employee superannuation funds 83 9.4 Transactions with responsible persons and their related parties. 81, 82 11 HUMAN RESOURCES ISSUES

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Grievance management

During 1997–98 DOI continued to administer a comprehensive grievance process. All nine grievances received were resolved via conciliation without the need to convene formal tribunals.

Progressive work options

DOI has continued to enhance its Work and Family Initiative with the introduction of two new support services to staff. The Child Care Information Kit and the Elder/Extended Care Referral Service complement existing services such as the on-site School Holiday and Employee Assistance Programs. DEPARTMENT OF INFRASTRUCTURE DEPARTMENT DOI negotiated a Certified Agreement directly with employees. This Agreement standardises employees’ conditions of employment for a period of two and a half years.

It provides employees with salary packaging options, a new performance management system, salary increases on the basis of delivering agreed outputs, increased flexibility in relation to use of entitlements such as sick/carer’s leave. Cashing-in of long-service leave has also an option under the Agreement.

The Agreement is supported by comprehensive policies and guidelines which will maintained and easily accessible by DOI through the Lotus Notes online system.

Occupational health and safety and WorkCover

With increased flexibility in delivering work outputs and the extension of workplaces to incorporate private homes, workplace Health and Safety policies have been further developed to cover transport and use of laptop computers and working from home safely.

A First Aid Network has been established with regular call-backs and extended training for First Aid Officers. Health monitoring programs have also continued with vision testing across the Department completed. Audits on specific areas have been undertaken resulting in improved work practices and proper use of equipment.

Human resource development

Continuous learning is the key to creative and productive work. Human resource development strategies are aimed to build organisational performance through the development of individual capabilities. Many and varied opportunities will continue to be provided to all DOI staff to update their existing skills and knowledge and extend into new areas.

DOI is addressing key competencies in contract/project management, IT and knowledge management skills, financial management, generic management skills, and analytical techniques in Developing DOI People 1998–99: • learning activities will be delivered in a variety of modes such as postgraduate courses, nationally accredited programs/courses, one-off short programs, recognition of prior learning processes • DOI contract management competency framework will be developed • a computer-based learning centre and applications will be established and maintained • mobility programs will be piloted. 133 ANNUAL REPORT 1997 - 98

Leadership development project 1998–99 • knowledge management will be an emphasis to enhance DOI competency/experience base and provide improved resources for project teams • executive officer one-on-one coaching/mentoring program will be offered.

DOI Open Seminar Series 1998–99 and Lunchtime Series 98–99, covering local and macro issues and involving cross-government and cross-sector players

DOI Business-based Training and Development Strategy aimed at building required skills and competencies through linkage to business unit plans and individual development plans

DOI graduate recruitment/development project 1999 • DOI graduate recruitment scheme for 1999 will yield 10 graduate recruits due to join the DOI workforce at the beginning of 2000 • a total of 33 graduates will be placed in DOI and/or its agencies in 1999.

Business transformation – Human Resource processes and services will be increasingly automated and electronic library-based resources promoted. 12 STAFF PROFILE

134

Status Male Female Total staff FTE Number

Executive officers 47 11 58 58 Non-executive officers 356 221 566.11 577 Temporary 40 53 88.54 93 Casual 2 5 5 7 Ministerial staff 4 11 15 15 Total 449 301 732.65 750 Staff: number by employment status at 30 June 1998

Classification Male Female Total DEPARTMENT OF INFRASTRUCTURE DEPARTMENT EO-1 1 0 1 EO-2 9 2 11 EO-3 37 9 46 Total 47 11 58 Executive staff: number by classification at 30 June 1998

Classification Male Female Total

Executive Executive officers 47 11 58 Broadband VPS-1 9 23 32 VPS-2 59 96 155 VPS-3 129 70 199 VPS-4 111 54 165 VPS-5 90 36 126 Subtotal 445 290 735 Ministerial staff Ministerial staff 4 11 15 Total 449 301 750 Staff: numbers by classification/category at 30 June 1998 13 CONSULTANTS

135 ANNUAL REPORT 1997 - 98

The following table lists the consultants engaged in 1997–98 where the cost of the engagement exceeded $100,000.

Consultant Project Total project Payments Future cost 1997–98 commitment $$$

Newton Wayman Research Customer Satisfaction 534,400 534,400 nil Measurement Program

ACW Software Pty Ltd Management Information 100,597 100,597 nil Reporting System

Sinclair Knight Merz Public Transport 260,000 225,035 34,965 Purchasing Study

AMQ International Infrastructure Study 224,338 208,818 15,520

In addition, 42 consultancies costing less than $100,000 were engaged at a total cost of $2,097,590.50 14 DIRECTORY

136

Principal offices and agencies

Office of the Secretary Level 26 Nauru House 80 Collins Street, Melbourne 3000 9655 3312

Bookshop Upper Plaza Level 80 Collins Street, Melbourne 3000 9655 8829

Regional Offices 499 Ballarat Road Sunshine 3020 9313 1307

12 Lakeside Drive East Burwood 3151 9881 8967 DEPARTMENT OF INFRASTRUCTURE DEPARTMENT 63 McKillop Street Geelong 3220 (03) 5225 2521

1315 Sturt Street Ballarat 3350 (03) 5333 8790

120 Kay Street Traralgon 3844 (03) 5172 2677

57 Lansell Street Bendigo 3550 (03) 5434 5150

50-52 Clarke Street Benalla 3672 (03) 5761 1888

Office of Major Projects Level 18 Nauru House 80 Collins Street Melbourne 3000 9655 5255

Building Services Agency Level 10 Nauru House 80 Collins Street, Melbourne 3000 9655 6288

Taxi and Tow Truck Directorate Level 6, 14-20 Blackwood Street North Melbourne 3051 9345 4027

VicRoads 60 Denmark Street Kew 3101 9854 2666

Public Transport Corporation Transport House 589 Collins Street, Melbourne 3000 9619 1111