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Great Southern Development Commission Pyrmont House 110 Great Southern Development Commission Building partnerships for regional prosperity CONTACT DETAILS: Great Southern Development Commission Pyrmont House 110 Serpentine Road ALBANY WA 6330 Telephone: (08) 9842 4888 Facsimile: (08) 9842 4828 Email: [email protected] Website: www.gsdc.wa.gov.au Great Southern Development Commission 10 Dore Street KATANNING WA 6317 Telephone: (08) 9821 3211 Facsimile: (08) 9821 3336 Email: [email protected] Other Formats This Annual Report is available in other formats on request. The GSDC encourages readers to access the Report online through the GSDC website and to use recycled paper if they print a copy. For convenience, and to minimise download times, the annual report has been presented in sections. The online Annual Report is in PDF format. GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity STATEMENT OF COMPLIANCE Hon Brendon Grylls MLA Minister for Regional Development; Lands; Minister Assisting the Minister for State Development; Minister Assisting the Minister on Country Transport. Sir In accordance with Section 61 of the Financial Management Act 2006, we hereby submit for your information and presentation to Parliament, the Annual Report of the Great Southern Development Commission for the financial year ended 30 June 2008. In the performance of its functions, the GSDC complies with all relevant written laws including but not limited to: • The Regional Development Commissions Act 1993 (as amended) • Financial Management Act 2006 • Public Service General Agreement 2004 • Public Sector Management Act 1994 • Industrial Relations Act 1979 • Minimum Conditions of Employment Act 1993 • State Supply Commission Act 1991 • State Records Act 2000 • Salaries and Allowances Act 1975 • Freedom of Information Act 1992 • Occupational Safety and Health Act 1984 • Official Corruption Commission Act 1998 • Disability Services Act 1993 • Public Disclosure Act 2003 In the financial administration of the GSDC, we have complied with the requirements of the Financial Management Act 2006 and every other relevant written law. We have exercised controls which provide reasonable assurance that the receipt and expenditure of moneys and the acquisition and disposal of public property and incurring of liabilities have been in accordance with legislative provisions. At the date of signing, we are not aware of any circumstances which would render the particulars in this statement misleading or inaccurate. GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity TABLE OF CONTENTS CHAIRMAN'S FOREWORD 1 OVERVIEW OF AGENCY 4 EXECUTIVE SUMMARY 4 OPERATIONAL STRUCTURE 5 ESTABLISHMENT 5 ORGANISATION CHART 6 BOARD MEMBERSHIP 7 OPERATIONAL STAFF 9 PERFORMANCE MANAGEMENT FRAMEWORK 10 OUTCOME BASED MANAGEMENT FRAMEWORK 10 CHANGES TO OUTCOME BASED MANAGEMENT FRAMEWORK 11 SHARED RESPONSIBILITIES WITH OTHER AGENCIES 11 REPORTING ON BETTER PLANNING: BETTER SERVICES 11 AGENCY PERFORMANCE 14 SELECTED PROJECTS BY GOAL 14 GOAL 1 - REGIONAL LEADERSHIP 14 GOAL 2 - INDUSTRY DEVELOPMENT 18 GOAL 3 - IMPROVE INFRASTRUCTURE 23 GOAL 4 - NATURAL RESOURCE MANAGEMENT 27 GOAL 5 - EFFICIENT AGENCY PERFORMANCE 30 SIGNIFICANT ISSUES AND TRENDS 32 OTHER SIGNIFICANT ISSUES AND TRENDS 34 DISCLOSURES AND LEGAL COMPLIANCE 35 CERTIFICATION OF FINANCIAL STATEMENTS 35 INCOME STATEMENT 38 BALANCE SHEET 39 STATEMENT OF CHANGES IN EQUITY 40 CASH FLOW STATEMENT 41 NOTES TO THE FINANCIAL STATEMENTS 42 PERFORMANCE INDICATORS 2007/2008 65 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity CERTIFICATION OF KEY PERFORMANCE INDICATORS 65 GOVERNMENT DESIRED OUTCOME 68 KEY PERFORMANCE INDICATORS 68 KEY EFFECTIVENESS INDICATOR 68 KEY EFFICIENCY INDICATOR 70 OTHER FINANCIAL DISCLOSURES 71 PRICING POLICY OF GOODS AND SERVICES PROVIDED 71 CAPITAL WORKS 71 EMPLOYMENT AND INDUSTRIAL RELATIONS 71 STAFF TRAINING, RECRUITMENT AND DEVELOPMENT 71 WORKERS COMPENSATION AND REHABILITATION ARRANGEMENT 72 GOVERNMENT DISCLOSURES 73 CONTRACTS WITH SENIOR OFFICERS 73 OTHER LEGAL REQUIREMENTS 73 COMPLIANCE WITH PUBLIC SECTOR MANAGEMENT ACT SECTION 31(1) 73 ELECTORAL ACT COMPLIANCE 74 ANNUAL ESTIMATES 74 DISABILITY ACCESS AND INCLUSION PLAN 74 OCCUPATIONAL SAFETY AND HEALTH 75 RECORDKEEPING PLAN 76 GOVERNMENT POLICY REQUIREMENTS 77 CORRUPTION PREVENTION 77 SUBSTANTIVE EQUALITY 77 SUSTAINABILITY ACTION PLAN 77 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity CHAIRMAN'S FOREWORD During 2007/08 the Great Southern Development Commission (GSDC) has again driven its vision for sustainable development of the region’s economy through our shared belief in ‘building partnerships for regional prosperity’. It has been a strategic objective of the Commission’s to add value to the region’s substantial plantation timber industry. In this regard it was pleasing to see site works begin this year for Plantation Energy Pty Ltd’s 250,000 tonnes per year biomass pellet plant. The company will commence the manufacture of export fuel pellets from tree plantation harvest residue at the newly-created Mirambeena Timber Processing Precinct during 2008/09. The Commission convened the first meeting to create the 80 hectare Precinct in January 2004 and chaired and provided executive services to the resulting Timber Processing Precinct Working Group, consisting of a number of State Government agencies and industry proponents, which met bi-monthly over some 4 years. This year the GSDC joined with the Department of Industry and Resources to progress the release of an $8.6 million Precinct infrastructure package that will facilitate the current and future growth of this regional asset. A major milestone was achieved in 2008 in that environmental approval was secured for the proposed Southdown magnetite mine. The GSDC has also driven the agency Working Group for this project in support of Grange Resources’ efforts to bring this mineral deposit, located 90 kilometres east of Albany, on stream. Buoyant mineral prices, as a result of continuing strong demand for steel in the dynamic economies of Asia, have created favourable conditions for the development of the proposed $1bn operation. However, environmental approval is still pending on key aspects of work at the Port of Albany, including the necessary dredging to enable the loading of Cape- sized ships. Pleasing as it is to see the prospect of major development in a range of new industries, agricultural production remains the mainstay of economic activity in the Great Southern. In 2007/08 the sector was responsible for producing a significant proportion of the region’s $2 billion gross product. In this regard, GSDC has provided financial and lobbying support to the Katanning Shire in its bid to Government for resources to replace the Katanning saleyards. However, the combined efforts of the Shire, the Commission and a number of others were unable to secure a firm funding commitment from Government to this important piece of regional infrastructure in 2007/8. Similarly, the GSDC has also been unsuccessful in its lobbying to support the Shire of Plantagenet’s bid for Government investment in its Great Southern Regional Cattle Saleyards. Much of the work in which the Commission is engaged to facilitate regional development is not easily visible. This includes its efforts to influence policies affecting the region. 2007/8 provided two key examples of this in the Commission’s sustained work in the areas of power and water headworks charging policy. Page 1 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity Partial success was evident in regard to electricity, where (with the support of colleagues) the Commission was successful in drawing the Government’s attention to the significant disparities which could arise as a consequence of the introduction of the new Distributed Headworks Charge (DHC) within the South West Interconnected System (SWIS). The outcome was the introduction of a rebate for “edge of the grid” customers which has significantly lowered the cost of connection in many situations. However, in its current form, the DHC remains a disincentive to development in areas at a distance to existing electricity sub-stations. More recently, the Commission has been focused on the outcome of the Economic Regulation Authority’s (ERA) 9 month inquiry into developer contributions to the Water Corporation. The ERA has recommended to Government that the current State-based Standard Headworks Charge (SHC) for water be abandoned in favour of a uniform scheme-based charging model. Preliminary analysis by both the Water Corp and the ERA has shown that adoption of the ERA model would lead to a wide range of charges across schemes. In submissions and presentations to the ERA on this issue, the Commission has pointed out that its proposed location-based charging approach is likely to disadvantage some regional towns and, if unmitigated, could act as a disincentive to development in many of these areas. The Commission has provided advice to Government that the “locational signal” favoured by the ERA in regard to the cost of the provision of water and electricity headworks would appear to be at odds with the thrust of sound regional development policy and the intent of certain Government programs, such as Land Corp’s Small Town Development Program and the Dept. of Local Government and
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