Department of Infrastructure Annual Report 2001–02 Department of Infrastructure Annual Report 2001–02

31 October 2002

The Hon. MLA Minister for Transport Minister for Major Projects

The Hon. Mary Delahunty MLA Minister for Planning

The Hon. Candy Broad MLC Minister for Ports

The Hon. Bob Cameron MLA Minister for Local Government

80 Collins Street 3000 www.doi.vic.gov.au

Dear Ministers

Annual Report 2001–02

In accordance with the provisions of the Financial Management Act 1994, I have pleasure in submitting for presentation to Parliament the Department of Infrastructure Annual Report for the year ended 30 June 2002.

Yours sincerely

Professor Lyndsay Neilson Secretary Department of Infrastructure Vision

The Department of Infrastructure (DOI) is a department that delivers the Government’s Growing Together vision and outcomes by providing innovative and integrated strategic advice, programs and project delivery consistent with a triple bottom line framework Mission

The purpose of DOI is to lead, in consultation with stakeholders and the community, strategic planning, integration, development and management of transport, urban planning and development, heritage and local governance. We will do this by:

• linking the transport system of road, rail, air and sea channels to promote economic and social development through increased mobility and access and a more cost-effective logistics sector

• promoting safe, efficient and integrated transport services across different modes while managing road traffic growth, in order to address the needs of the travelling public and industry

• creating a fair and efficient land-use planning system that respects regional differences and promotes development which is of high quality and is sustainable

• providing mechanisms to sustain an effective local government system

• providing strategic advice, analysis and support to government, our stakeholders and communities

• delivering the government’s major transport infrastructure investments

• delivering a wide range of other major projects on behalf of government departments and agencies. Values

The values, developed by our staff, underpin everything we do at DOI and highlight our commitment to professionalism. At DOI we value: • teamwork. We acknowledge our shared goals. We openly cooperate and communicate our knowledge and we share our expertise and information within our work units and across DOI, individually and organisationally

• diversity. We value our people's diversity and respect and recognise each other’s diverse knowledge, skills and capabilities

• integrity. We are ethical, accountable and transparent in our dealings with colleagues, stakeholders and clients

• commitment. We are committed to the provision of high-quality services and are responsive to the changing demands of the community, government and other stakeholders we serve

• innovation. We support lifelong learning and flexibility, and encourage innovation to provide solutions and achieve better outcomes. Contents

Vision, Mission, Values Infrastructure Portfolios 2 Secretary’s Foreword 4 Organisational Chart 5 DOI’s Management Committee 6 Public Safety 13 Access and Mobility 19 Seamless Freight and Logistics System 27 Rural and Regional Development 31 Liveable Communities 37 Local Governance 43 Infrastructure Delivery and Management 49 Organisational Capability Building 55 Summary of Financial Results 61 Financial Statements 63 Portfolio Agencies Statement 64 Appendixes 123 Output Performance Measures 124 Legislation Administered 152 Budget Portfolio Outcomes 160 Staff Profile, including DOI Executive Numbers 165 Statutory Authorities Executive Numbers 166 Industrial Relations, OH&S, etc. 170 Freedom of Information 171 Multicultural Performance Report 172 National Competition Policy 175 Consultants 176 Whistleblowers Legislation - DOI Response 177 Disclosure of Major Contracts Compliance 178 Other Available Information 179 Building Act Compliance 179 Late Annual Reports 180 Late Corporate Plans 180 Compliance Index 181 Statutory Authorities 183 Architects Registration Board of Victoria 184 Building Commission 184 Docklands Authority 185 Hastings Port (Holding) Corporation 186 Heritage Council 187 Marine Board of Victoria (now Marine Safety Victoria) 188 Melbourne City Link Authority 189 Melbourne Port Corporation 189 Plumbing Industry Commission 190 Public Transport Corporation 191 Roads Corporation of Victoria (VicRoads) 192 Spencer Street Station Authority 193 Urban and Regional Land Corporation 193 Victorian Channels Authority 194 Victorian Rail Corporation (VicTrack) 195 Other Bodies and Committees 196 Whistleblowers Protection Policy 197 Directory 206

Department of Infrastructure Annual Report 2001-2002 1 Infrastructure Portfolios

The Hon. Peter Batchelor MP The Hon. Mary Delahunty MP

Minister for Transport and Minister for Major Minister for Planning Projects (Coordinating Minister)

The Planning portfolio includes responsibility for:

The Transport portfolio covers public transport and roads • policy direction and statutory controls for land use and includes: planning and development • contract and lease arrangements for train, tram, route • environmental effects assessments bus, school bus and ferry services and infrastructure • urban design and development • regulation of taxi, hire car, accident towing and driving • heritage regulation and programs instruction industries • monitoring government land transactions. • regulation of public transport and road safety • accessible transport services and facilities Statutory authorities • road system development and maintenance • Urban and Regional Land Corporation* • transport policy and planning • Architects Registration Board of Victoria • traffic system management • Building Commission • driver licensing and vehicle registration • Heritage Council • rail and road freight and logistics • Plumbing Industry Commission. • management of the Government’s City Link contract • management of large and complex building/development projects crucial to State development • major project concept development, implementation and delivery for the State of Victoria.

Statutory authorities • Roads Corporation of Victoria (VicRoads) • Public Transport Corporation • Victorian Rail Track Corporation (VicTrack) • Spencer Street Station Authority • Docklands Authority • Federation Square Management Company.

DOI supports four Ministers, holding five portfolios. The Parliamentary Secretary for Infrastructure is Mr Carlo Carli MP.

2 Department of Infrastructure Annual Report 2001–02 Infrastructure Portfolios

The Hon. Candy Broad MLC The Hon. Bob Cameron MP

Minister for Ports Minister for Local Government

The Ports portfolio includes: The Local Government portfolio includes:

• freight and logistics planning and infrastructure • development of government policy for the local government sector • port policy, planning and development • responsibility for the performance of the local • marine safety and environment government sector as a whole • sea passenger infrastructure and ferries • monitoring councils’ performance in relation to the Local • cruise shipping Government Act • management of Port Phillip Bay shipping channels. • implementation of Best Value policy.

Statutory authorities Statutory authorities • Melbourne Port Corporation* • Victoria Grants Commission • Victorian Channels Authority* • Hastings Port (Holding) Corporation.*

Carlo Carli MP

Parliamentary Secretary, Infrastructure

* Shared responsibility with the Treasurer

Department of Infrastructure Annual Report 2001–02 3 Secretary’s Foreword

The year 2001–02 has been an exciting one for DOI. Major • coordination of $300 million in construction work at Docklands, infrastructure projects were started or completed, the foundations including the extension of Collins Street were laid for future projects of Statewide and national significance, • release of the Great Ocean Road Regional Strategy Discussion and DOI consolidated its leadership role in delivering the world- Paper and the start of work on Regional Action Plans for class infrastructure Victoria requires for a strong, sustainable and and Bendigo successful future. • establishment of a new State-based maritime radio DOI has now realigned its directions, philosophies and structures to communications system and the creation of a new Office of the support the objectives set out in the Government’s Growing Director of Marine Safety Victoria Together statement. DOI has set key portfolio outcomes by which to measure its performance in achieving the Government’s • introduction of ResCode aims of growing and linking the whole State and delivering lasting economic, social and environmental benefits to all Victorians. • completion of the review of the Local Government Act 1989 and the introduction of legislation to improve council decision- DOI’s eight key portfolio outcomes are: making, financial management and public accountability

• public safety • building local government capacity by assisting councils implement Best Value principles, develop the skills and capacity • access and mobility to manage infrastructure and strengthen relationships with • seamless freight and logistics system indigenous communities.

• rural and regional development In 2001–02, DOI continued to build its organisational capability to ensure the Department has the right skills and processes to meet • liveable communities the Government’s objectives and deliver projects on time and • local governance to budget.

• infrastructure management and delivery DOI also continued to develop new tools to consolidate its leadership in the use of information, knowledge and technology in • organisational capability building. administration, project delivery and communicating with the DOI’s achievements in 2001–02 include: Victorian public. At the heart of DOI’s achievements in 2001–02, and in line with • final preparations for signing of contracts for the redevelopment Growing Victoria Together, lies a strong focus on local governance of Spencer Street Railway Station and community consultation. DOI is committed to engaging • awarding of contracts for the development of Fast Rail Links to communities in the projects and plans affecting their future and regional centres supporting the growth of liveable and safe communities across the State. • continuing delivery of the Government’s Linking Victoria program, including the start of work on the Scoresby Integrated As Victoria drives forward as a thriving, innovative and globally Transport Corridor and completion of the St Albans – Sydenham connected economy, DOI has been entrusted with projects of vital rail line electrification importance to Victoria’s future. It is a responsibility we accept and a challenge we welcome. • furthering the process of port reform with the completion of the Independent Review of Port Reform in Victoria, release of Exciting new projects have already been delivered. Many more are Ports Agenda 2002 and launch of the Port of Melbourne’s coming online. From regional and rural Victoria to outer whole-of-port Environmental Management Plan metropolitan Melbourne and the CBD, DOI looks forward in the year ahead to planning and delivering infrastructure of lasting • progress toward development of a Freight and Logistics Strategy benefit and value to all Victorians. for Victoria

• completion and implementation of Victoria’s first Multi-Year Infrastructure Investment Strategy (MYS)

• commencement of planning for the Australian Synchrotron Project Lyndsay Neilson • start of work on the redevelopment of the Royal Melbourne Showgrounds Secretary

• development and implementation of new initiatives in urban development, including the Transit Cities program, the Metropolitan Strategy and the Yarra Precinct Plan

4 Department of Infrastructure Annual Report 2001–02 Organisational Chart Council Region (Sunshine) (Geelong) Region (Burwood) Victoria Grants Commission Best Value Commission Best Value Local Government Consultative Governance and Legislation Sector Development Programs Funding Support and Communications Regions - Metropolitan North West - Region Western South - North Eastern Region (Benalla) - Northern Region (Bendigo) - South East Metropolitan - Region(Ballarat) Western - Eastern Region (Traralgon) Minister for Local Government The Hon Bob Cameron MP Local Government and Regional Services Division Executive Director Prue Digby Development and Policy Support and Policy Corporation* Council Committee Marine and Port Policy Marine and Port Planning and Port Shipping Planning Passenger and Logistics Freight Planning National Transport Marine Safety Victoria Marine Environment Intermodal Policy Cruise Shipping Melbourne Port Corporation* Melbourne Port Victorian Channels Authority* (Holding) Hastings Port * Shared responsibility with DTF Victorian Sea Freight Industry Victorian Sea Freight Secretariate National Transport National Marine Safety Australian Maritime Group Ports and Marine Division Ports Executive Director Des Powell Minister for Ports The Hon Candy Broad MLC Management and Reporting and Analysis Operations Corporate Finance Division Chief Finance Officer Bob McDonald Corporate Financial Financial Planning Budget Advice and Practice Financial Policy ERC Reporting Finance Systems Property and Accounting Taxation Management and Development Organisational Development Division Executive Director Sue Jaquinot Corporate Planning Corporate Public Affairs Contract Services Information Technology Library Executive and Legal Human Resources Corporate Services Howard Ronaldson Professor Lyndsay Neilson Lyndsay Professor Strategies Policy Transport Council Council Advisory Council Metropolitan strategy Regional Strategies Integrated Transport Strategy Muti-Year Infrastructure Economics and Research and Analysis Development Facilitation VicRoads - Road system management - Registration and licensing - Road use management - Road safety Victorian Bicycle Advisory Victorian Motorcycle Advisory Victorian Road Freight Strategic Planning Division Executive Director John Collins - PORTFOLIOS SECRETARY Chief Operating Officer Redevelopment Redevelopment Exhibition Centre Expansion Centre Stage II Project Management Company Advisory Committee Major Projects Victoria Executive Director James Cain National Gallery of Victoria State Library of Victoria Commonwealth Games Village Melbourne Convention and National Synchrotron Facility Beacon Cove Malthouse Plaza Studios Film and Television Melbourne Sports and Aquatic Bridge Memorial Westgate Bonegilla Immigration Camp Showgrounds Redevelopment Banks Kensington Jolimont Eastside Arts Precinct Intergration Docklands Authority Square Federation Hazardous Waste Siting Hazardous Waste Redevelopment Project Development Commercial / Legal Strategic Relations Rail Project Regional Fast Rail Gauge Standardisation Rail Service Country Passenger Spencer Street Station Rail Bypass Wodonga Corridor Scoresby Transport Infrastructure Development Office of Melbourne City Link and Project Feasibility Infrastructure Projects Division Executive Director, Gail Moody train and tram – Charter Committee Committee Advisory Committee Council Authority Information Planning Public Transport Access Public Transport Heritage Public Transport Committee City Circle Tram Advisory Victorian Rail Freight Force Task Safe Travel Public Transport Customer Public Transport Office of the Director Public Transport Director of Public Transport John Taylor Public Transport Corporation Public Transport VicTrack Spencer Street Station Transport Contracts Transport - Metro - Country train - Metro bus - Country bus - School bus Infrastructure Management Accessible Transport and Hire Cars Trucks Tow Taxis, Research and Transport Enforcement Administration and Policy Public Transport Services Technical Safety Legal Advice Operator Accreditation Minister for Transport Min for Major Projects Batchelor MP The Hon Peter Commission Land Corporation Committee Council Legislation Development Assessment Information Conservation and Programs and Stakeholder Support CENTRAL OFFICE Planning Heritage and Building Division Executive Director Paul Jerome Architects Registration Board Building Commission Heritage Council Plumbing Industry Urban and Regional Building Advisory Council Building Appeals Board Building Practitioners Board Building Regulations Advisory Plumbing Industry Advisory Victoria Planning Panels Minister for Planning The Hon Mary Delahunty MP STATUTORY AUTHORITIES STATUTORY Land Use Planning - and Planning Policy - Planning System - Project and Statutory - and Development Land Design and Development - Precinct Yarra - Pride of Place Heritage - Heritage Assessment - Community Information Land Monitoring Place Management - Cities Transit OTHER BODIES AND COMMITTEES

Department of Infrastructure Annual Report 2001–02 5 DOI’s Management Committee

Professor Lyndsay Neilson – Howard Ronaldson – Secretary Chief Operating Officer

The Secretary, Professor Lyndsay Neilson, leads DOI in policy Howard was appointed to the new position of Chief development and program management in infrastructure Operating Officer in May 2002, to lead major project and planning, investment and delivery in Victoria. The Secretary contract management reviews and to develop and enhance is responsible for providing policy advice to the Ministers DOI’s project development, management and commercial for Transport, Major Projects, Planning, Ports and Local skills. Government on all matters within the Infrastructure He brings vast experience in negotiating complex portfolios. commercial arrangements between the private sector and Professor Neilson is also responsible for developing a government and providing expert strategic policy advice. whole-of-government approach to managing significant Howard has held senior positions advising on key State planning and development issues, and for ensuring infrastructure and financial issues and as chief executive effective liaison with, and joint action between, of major government functions. His early career included infrastructure agencies, other government departments and a senior position in a private company. After joining the the market sector. Facilitating effective relationships with Victorian Government, he held senior positions in the the private sector, providers of public transport services, Department of Industry, Technology and Resources, rail freight, roads and other infrastructure, is also a key Department of Premier and Cabinet, and became the responsibility. Director of Gaming, the Director of Crown Lands and the Director of Housing. His most recent position has been the The Secretary is the leader of DOI’s corporate executive, Chief Executive and Under Treasurer of the Department and provides support and policy guidance to the statutory of Treasury, ACT. authorities and other government agencies in the Infrastructure portfolio. Howard will oversight DOI’s enlarged infrastructure responsibilities.

Howard holds a Bachelor of Economics degree and Graduate Diploma in Accounting and Finance from Monash University, and has a Master of Business Administration from Melbourne University.

6 Department of Infrastructure Annual Report 2001–02 DOI’s Management Committee

Bob McDonald – Sue Jaquinot – Chief Finance Officer Executive Director, Organisational Development

Bob has been the Chief Finance Officer of DOI since April Sue was appointed Executive Director, Organisational 1997 and plays a key role in progressing DOI’s contribution Development in April 1996. On behalf of the to whole-of-government outcomes, particularly through the Organisational Development Division, Sue has responsibility Multi-Year Strategy and infrastructure investment priorities. for leading organisational development and change Accordingly, Bob provides high-level support to Ministers processes and for providing a range of corporate support and the Secretary through the annual budget process, functions including corporate planning, information Public Accounts and Estimates Committee hearings, management, legal and legislation services, library services, the ‘Output Review’ process and Cabinet submissions. administration and contract management services. Prior to this Sue was: In addition, Bob is responsible for DOI’s budgeting, financial accounting and management accounting • Group Manager, Human Resources, Department of functions, financial monitoring and reporting, compliance Planning and Development, and with accounting and audit standards and all statutory • Group Manager, Human Resources, Ministry for Housing financial requirements. The Corporate Finance Division and Construction. maintains and develops DOI’s financial management systems and provides a full range of financial and Sue has more than 20 years of experience in the public accounting services. sector, particularly in human resources, where key areas of her involvement were developing and implementing A member of the VicRoads Audit Committee and the government pay and people management policies and Plumbing Industry Audit Committee, Bob has more than leading major organisational change projects and 15 years’ experience in Chief Finance Officer and other processes. financial executive roles in the public sector. Sue is the Outcome Leader for the Organisational Capability Bob is a joint Outcome Leader for the Infrastructure Building Outcome Group, and a joint Outcome Leader for Development and Management Outcome Group with the Rural and Regional Development Outcome Group with James Cain and Gail Moody. John Collins and Prue Digby. He is a graduate of Monash University with a Bachelor of Sue holds a Bachelor of Arts (Hons) degree and is a Fellow Economics degree, and is a Fellow of the Australian Society of the Institute of Public Administration, Victoria (IPAA). of Certified Practising Accountants.

Department of Infrastructure Annual Report 2001–02 7 DOI’s Management Committee

John Collins – Prue Digby – Executive Director, Strategic Planning Executive Director, Local Government and

John was appointed as Executive Director, Strategic Regional Services Planning in April 2001. The Division is responsible for: Prue was appointed to the position of Executive Director, Local Government in June 1999.* She has responsibility for • the Metropolitan Strategy providing Statewide policy development and leadership in • regional strategies promoting an effective system of local government in • integrated transport strategies Victoria. She is also responsible for developing effective working partnerships with councils, peak bodies, other • infrastructure economics and transport policy government departments, unions and community groups in • MYS developing best practice and continuous improvement in local governance and service delivery. • research and analysis Prue was previously: • development facilitation • Chief Executive Officer for the City of Yarra In addition to its specific operational responsibilities, the Strategic Planning Division has a role in facilitating • a senior executive at the for 10 years, interdepartmental and inter-agency cooperation in strategic and planning and maintains close links with a range of agencies • worked for a community-based organisation for a including VicRoads. number of years, providing social work services on inner John has more than 20 years of experience in senior policy Melbourne public housing estates and communities. and management positions with State and Commonwealth Prue is currently on the Boards of a range of organisations government agencies, working in urban planning, including the IPAA, the Australian Institute of Management transport, and public utilities, and with central agencies. (AIM), and (until June 2002) the State Library Board of John also has 10 years of experience as a management Victoria. She is a Fellow of both IPAA and AIM. consultant specialising in strategic planning, evaluation and organisational development projects for public sector Prue is a joint Outcome Leader for both the Liveable agencies. Communities Outcome Group and the Local Governance Outcome Group with Paul Jerome, and a joint Outcome John is a joint Outcome Leader for the Rural and Regional Leader for the Rural and Regional Development Outcome Development Outcome Group with Prue Digby and Group with John Collins and Sue Jaquinot. Sue Jaquinot. Prue has a Bachelor of Social Sciences (Social Work) from John is a graduate of the Australian National University. the Philip Institute of Technology.

* Prue took on responsibilities for DOI’s Regional Offices in July 2002.

8 Department of Infrastructure Annual Report 2001–02 DOI’s Management Committee

John Taylor – Des Powell – Director of Public Transport Executive Director, Ports and Marine

John Taylor heads the Office of the Director of Public Des Powell was appointed Executive Director, Ports and Transport (ODPT), which is responsible for providing policy Marine in September 2001. direction, leadership and coordination across the public The Ports and Marine Division provides advice and support transport system in Victoria. to the Minister for Ports on port and marine policy and Public transport in Victoria is fully privatised and the five planning, as well as coordinating port and marine strategy metropolitan and country passenger rail businesses were and policy matters across Victoria. contracted out in August 1999. ODPT has responsibility for Des joined the Victorian Government after a long career in managing more than $1 billion of contracted transport Executive Management within the private sector in the services a year. logistics and service industries. He has considerable Prior to his appointment at DOI, John spent 10 years as the experience in general management, operations and General Manager of the Melbourne Airport, during which executive management across many elements of the time the Airport underwent a major redevelopment and industry, including all modal sectors, and in the area of privatisation. John also spent 20 years with the Port of provision of third-party logistics and supply chain services Melbourne Authority in a number of roles including both in and Asia. construction, planning, commercial, property development, In addition, he has considerable experience in working with marketing and trade facilitation. government and industry in a range of consulting roles John is a Board Member of the Spencer Street Station both in Australia and internationally. Authority, and is Chairman of the Shrine of Remembrance Des is the Outcome Leader for the Seamless Freight and Trustees. Logistics Outcome Group. John is the Outcome Leader for the Public Safety Outcome Group, and is a joint Outcome Leader for the Access and Mobility Outcome Group with David Anderson, the CEO of VicRoads.

John holds a Bachelor of Civil Engineering and an MBA from the University of Melbourne.

Department of Infrastructure Annual Report 2001–02 9 DOI’s Management Committee

Gail Moody – James Cain – Executive Director, Infrastructure Projects Executive Director, Major Projects Victoria

Gail was appointed Executive Director, Infrastructure James was appointed to the position of Executive Director, Projects on its creation in September 2001; immediately Major Projects Victoria (MPV) in August 2001. Following prior to this appointment she had held the position of machinery-of-government changes is February 2002, Major Deputy Executive Director, Rail Projects Group. Gail’s key Projects Victoria moved from the former Department of responsibility is to ensure the effective delivery of all priority State and Regional Development to become a Division of infrastructure projects. DOI.

The Infrastructure Projects Division has responsibility for MPV manages large and complex building/development Regional Fast Rail, Spencer Street Station Redevelopment, projects crucial to State development and nominated by the Airport Transit Service, Rail Gauge Standardisation, Premier. It also undertakes project concept development, Wodonga Rail Bypass, Country Rail Passenger Services, the implementation and delivery for the Victorian Government. development of the Scoresby Integrated Transport Corridor, Current key projects that MPV is involved in include: and the continuing management of the State’s relationship with Transurban City Link. The Division is also responsible • National Gallery of Victoria for delivery of the front end project development through • State Library of Victoria the Infrastructure Development Group. • Commonwealth Games Village Prior to joining DOI, Gail held senior positions in the public transport sector, where she was responsible for the delivery • Australian Synchrotron Facility of major projects. • Arts Precinct Developments – Southbank

Gail is a joint Outcome Leader for the Infrastructure • Beacon Cove Development Delivery and Management Outcome Group with James Cain • Royal Melbourne Showgrounds Redevelopment and Bob McDonald. • Melbourne Sports and Aquatic Centre Gail holds a Bachelor of Civil Engineering and Master of Engineering Science (Transport Planning), and is a Fellow of Prior to his appointment to MPV, James worked in the Institute of Engineers Australia. private sector for more than 10 years with Lend Lease Corporation, in a variety of roles. In 1998, he was appointed General Manager of Bovis Lend Lease, (Lend Lease’s Design and Construct Project Manager) for Victoria, South Australia and Tasmania. James has a broad experience in the property, project design, and construction fields in a range of sectors including government, commercial, retail, health and industrial.

James is a joint Outcome Leader for the Infrastructure Delivery and Management Outcome Group with Bob McDonald and Gail Moody.

James holds a Bachelor of Building (Melbourne), and an MBA (Australian Graduate School of Management).

10 Department of Infrastructure Annual Report 2001–02 DOI’s Management Committee

Paul Jerome – Executive Director, Planning, Heritage and Building

Paul joined DOI in February 2000 as Executive Director, Planning, Heritage and Building – an area which maintains a statutory planning system that facilitates development, promotes good urban design, and supports optimal land use across Victoria.

He was previously Director of City Development with the City of Yarra, where he gained first hand experience in local government and, in particular, the difficulties associated with medium-density housing. Prior to this, Paul was a full-time Panel Member of Planning Panels Victoria for two years, and a member of the Local Government Board during the local government amalgamations. During this latter period, he was seconded to the Melbourne City Link Authority for six months, and was fortunate enough to work on an AusAid project in Hanoi, Vietnam for six months.

Paul is a joint Outcome Leader for both the Liveable Communities Outcome Group and the Local Governance Outcome Group with Prue Digby.

Paul holds a Bachelor of Arts degree, a postgraduate Diploma in Town and Regional Planning, and a Masters Degree in Social Policy.

Department of Infrastructure Annual Report 2001–02 11 Chief Finance Officer’s Executive Analysis

CFO Executive Analysis DOI output performance There have been a number of significant changes to DOI that have had an impact on the financial statements during Strategic land use and Balanced planning and Supporting local the 2001–02 year. In dollar terms, the largest of these infrastructure planning environmental systems government 0.4% 2.2% 1.6% changes is the inclusion of the functions of the former Transport safety Ports and intermodal Melbourne City Link Authority into DOI and the creation of and accessibilty gateways 9.3% 0.7% the Office of the Director, Melbourne City Link which will continue to manage the issues associated with the City Link Regional and rural transport services Metropolitan transport 11.7% project within DOI. The net assets of the former authority, infrastructure and public development projects totalling $335 million, have been transferred to DOI as a Regional and rural 17.2% Metropolitan transport services transport infrastructure capital contribution. Similarly, the net assets of the former 43.0% 13.9% Marine Board of Victoria have been transferred to DOI. In a machinery-of-government change, the Office of Major Projects, now known as Major Projects Victoria, transferred its net assets to DOI on 5 March 2002. DOI has in this respect: DOI’s Statement of Financial Position reflects these significant changes in its 2001-02 Statement of Financial • delivered most of its agreed output targets Position. • managed throughout the year within its available Another major change to the financial landscape involves resource limits. the treatment of capital appropriations. Previously, capital The financial statements presented later in this report are funding was received in the Statement of Financial prepared in accordance with the applicable Australian Performance as revenue. An Urgent Issues Group Accounting Standards and the Financial Management Act proclamation and subsequent Department of Treasury and 1994. They are presented in accordance with the model Finance Accounting Bulletin changed the accounting accounts for Departments produced by the Department treatment of this funding as equity and it is now reflected of Treasury and Finance and reflect the changes made as as a capital contribution by the Government to DOI. a result of new accounting standards effective from This has had the impact of reducing the DOI’s revenue by 1 July 2001. some $192 million in the 2001–02 year compared to the previous treatment reflected in the 2000-01 year. The operating surplus of $55 million reflected in DOI’s Statement of Financial Performance principally relates to The Statement of Financial Performance includes revenue funding for committed expenditure and, as such, is not received by DOI as payment for outputs delivered in available for distribution. accordance with agreed output targets.

12 Department of Infrastructure Annual Report 2001–02 Public Safety

Department of Infrastructure Annual Report 2001–02 13 Public Safety

A public environment Key achievements where people feel and are Statewide Blackspot Program personally safe The Statewide Blackspot program approved 422 projects The broad objectives of DOI’s Public Safety Outcome Group in 2001–02 from those nominated from the public and are to: organisations, a total of $216.5 million worth of projects.

• understand the community’s expectations and improve The program has allocated 50 per cent of the program the community’s perceptions of personal public safety funds to country roads including provincial towns and in Victoria cities, while the other half has been allocated to roads in the Melbourne metropolitan area. • improve public safety and reduce the severity, cost and occurrence of public safety incidents. $216.5 million DOI has progressively implemented a range of strategies across 2001–02 to meet these objectives. They include the highly successful Accident Blackspot program, improved 50% 50% passenger safety on trains and at stations, and significant Metro Rural marine safety initiatives, as well as the establishment of a Safe Travel Taskforce. Key achievements are outlined in detail below. Delivery of new and refurbished rolling stock with closed-circuit television and duress buttons

The Government, under the contractual arrangements with the two metropolitan rail operators, will fund the replacement of most Hitachi trains and the refurbishment of 94 six-car unit Comeng trains at a cost of approximately $790 million.

As part of this project, which will be completed by March 2005, closed-circuit television (CCTV) and duress buttons will be introduced on all trains. Currently more than 30 per cent of trains have been equipped with CCTV and duress buttons as part of the refurbishment of the Comeng trains.

14 Department of Infrastructure Annual Report 2001–02 Public Safety

Increase number of Premium Stations Safe Travel Taskforce

More than 60 Premium Stations are located throughout The Safe Travel Taskforce provides advice to the Victorian Melbourne's suburban rail network. In addition to CCTV on Government on matters relating to public safety on the the station platforms and car park entrances that feature at public transport network throughout the State. The primary all stations, Premium Stations offer improved security and role of the taskforce is to facilitate the exchange of services for passengers and are staffed from the first train in information between the police and transport operators the morning until the final service at night, seven days a and review security programs, resources and the week. They also provide: coordination of safety and security initiatives.

• improved passenger facilities such as enclosed waiting The taskforce is a high-level group that represents both the areas transport and safety sectors. The following organisations have members on the taskforce: • ticket sales points and passenger information. • DOI – ODPT Both metropolitan rail franchisees have committed to increasing the number of Premium Stations on the rail • Victoria Police – Transit Safety Division network. Connex Trains has upgraded Bayswater, Macleod, • Rail, Tram and Bus Union Mooroolbark and Surrey Hills stations to Premium status at a cost of approximately $1.8 million and employed 12 staff • Transport Operators – Connex, V/Line Passenger, Yarra to ensure staff presence from the first to the last scheduled Trams, M>Train, M>Tram service. • Victorian Taxi Directorate

Installation and operation of safety • Bus Association Victoria cameras in taxis • Department of Justice.

The installation of security cameras in taxis is under way Wheelchair Safety at Level Crossings and represents one of the most significant taxi safety initiatives yet undertaken in Victoria. The initiative followed Taskforce comprehensive research and consultation with the taxi The Minister for Transport established a taskforce to industry that highlighted the safety benefits to both drivers examine wheelchair safety at rail level crossings in Victoria. and passengers from the use of the cameras to deter Under the coordination of DOI, the taskforce potential offenders from criminal activities. recommendations provided to the Minister in March 2002 were accepted and he has taken the recommendations to Good progress was made on camera installation in taxis in the Australian Transport Council. the metropolitan, outer suburban (Frankston/Dandenong) and Geelong fleets. All taxis operating in the metropolitan The taskforce has addressed several key issues including area will have cameras installed by the end of October design standards of level crossings, wheelchair design and 2002. Installation of cameras in taxis in regional Victoria is operating procedures relating to pedestrian rail crossings. targeted for early 2003.

Department of Infrastructure Annual Report 2001–02 15 Public Safety

Roving Safety Officers and Conductors Implementation of a recreational boat

The Government has provided ongoing funding for the safety strategy employment of 100 Roving Safety Officers on after-dark Marine Safety Victoria is reviewing all current recreational suburban rail services, to improve safety and security. It has boating programs in Victoria in order to provide a also funded the employment of 100 Roving Conductors on structured approach to recreational boating safety trams to assist passengers. management. The review will progress over the next 12 months and will involve discussions with key stakeholders. Contributions to national initiatives for Statewide audits of navigation aids, increased safety rail safety and operational uniformity signage on waterways and expanded marine safety

DOI makes significant contributions to national initiatives promotions are being undertaken. for rail safety and operational uniformity through its: Implementation of boat operator • membership of the management committee for the licensing system review and development of the Australian Standard for Rail Safety The Government has introduced a Recreational Boat Operator Licensing program, with a staged implementation: • contribution to the National Codes for operations and safe-working, and working with the Victorian rail • on 1 February 2002 licensing began with boat industry to implement the codes on the Victorian operators under 21 years of age and operators of network personal watercraft (also known as ‘jet skis’), who required a licence • membership of the national accreditation authorities Standing Committee for Uniformity of Accreditation • remaining recreational powerboat operators will be across Australia, which includes a rail industry required to be licensed by 1 February 2003. consultative forum. Licensing is consistent with the Government’s objective for a safer marine environment through improved operator Development of an integrated system competencies and related safety measures. This will be for public transport incident reporting achieved by ensuring that anyone who is operating a and management powered recreational vessels will have demonstrated a basic knowledge of waterway rules and safe boating operation. As part of the program to develop an integrated system for public transport incident reporting and management for all operators (rail, bus and taxi), and to promote development of a national incident reporting database, Victoria supplies incident statistics to the Australian Transport Safety Bureau (ATSB). The ATSB is responsible for collecting statistics from all accredited rail organisations in Australia based on agreed common definitions.

16 Department of Infrastructure Annual Report 2001–02 Public Safety

Marine radio communication The new service began operation on 1 July 2002, replacing distress and safety monitoring functionality lost when the During 2001–02, DOI’s Ports and Marine Division was Commonwealth Government closed its coastal radio responsible for establishing a State-based marine radio network including Melbourne Radio at Cape Schank. communications system to provide a continuous distress The new service, Coast Radio Melbourne, is operated by the monitoring capability and the capacity to broadcast marine Victoria Channels Authority (VCA) from the Point Lonsdale safety information (weather and navigation warnings) to Lighthouse, under a service agreement with Marine Safety Victoria’s domestic vessel fleet. Victoria.

Marine Safety Victoria Regions South Gippsland /Mornington Peninsula Surf Coast / South Metropolitan Shipwreck Coast/ Central Metropolitan East Gippsland Inland/ West Metropolitan

Department of Infrastructure Annual Report 2001–02 17 Public Safety

Implement Victoria’s contribution to the National Pollution Response Plan

To implement Victoria’s contribution to the National Pollution Response Plan, Marine Safety Victoria has attended National Plan Management committee meetings and Operations Group meetings and has also contributed to the development of the National Plan Intergovernment Agreement.

Marine Safety Victoria has reviewed the Victorian Marine Pollution Contingency Plan and integrated the requirements of the intergovernmental agreement into the Plan.

Increased vessel survey services

Commercial vessel survey services have been substantially improved in regional Victoria by the allocation of surveyors to five regions in the State. Each regional surveyor is responsible for managing the survey program within that region, which has resulted in significant improvements in customer service delivery and substantial progress towards achieving 100 per cent annual survey of commercial vessels in the State.

Office of the Director Marine Safety

In February 2002, the Marine Board of Victoria was replaced by the Office of the Director Marine Safety, which trades as Marine Safety Victoria. The Director has enhanced powers to regulate marine safety and ensure a safe and accessible marine environment for all Victorians. The Director has established industry and community advisory groups encompassing commercial fishing, marine industries, small commercial vessels and recreational boating. In addition, quarterly newsletters are published and Statewide public forums are held.

18 Department of Infrastructure Annual Report 2001–02 Access and Mobility

Department of Infrastructure Annual Report 2001–02 19 Access and Mobility

A sustainable development Key achievements pattern and transport St Albans – Sydenham rail line system that provides all electrification people with the choice to The $44 million St Albans–Sydenham rail line electrification participate in a range of is a particularly successful project delivered via an alliance activities to meet their contract between DOI, National Express and Thiess. changing needs The project was completed ahead of schedule and below budget. The project: The broad objectives in this outcome group are to: • extended the electrified rail line six kilometres from • enhance access and transport choices for people to St Albans to Sydenham services, jobs and opportunities • built new railway stations at Watergardens and Keilor • increase the travel market share of public transport and Plains non-motorised modes of transport • improved the St Albans railway station. • provide a more sustainable transport system. New station facilities include car parking, ‘kiss and ride’ Two key strategies for achieving these objectives are the facilities, bus access and bays, taxi ranks, and covered 20/2020 Implementation Plan and the Metropolitan Road walkways linking Watergardens station to the newly and Traffic Management Plan. In Growing Victoria developed Watergardens shopping precinct in Sydenham. Together, the Government set a target for public transport’s Electrified metropolitan rail services began on 27 January share of all motorised trips to increase from 9 per cent to 2002. 20 per cent by the year 2020 (20/2020), to ensure the Construction of Watergardens station has created move towards a more balanced and sustainable urban development opportunities to leverage further private and transport system. public-sector investment in the Sydenham Transit City A number of access and mobility achievements in regional precinct. Master-planning for the project has identified Victoria, including the regional fast rail links and reopening potential opportunities for higher density housing and of country passenger lines, are included in the Rural and mixed-use development on both public and private land, Regional Development chapter in this report. A number of particularly around the new railway station. Some of these initiatives to improve the level of safety and security when development opportunities are already being acted on by travelling are listed in the Public Safety chapter. the private sector with a major expansion of the Watergardens Shopping Centre.

Spencer Street Station Redevelopment

The Spencer Street Station Redevelopment project will provide a world-class transport interchange facility (TIF) at the site of the existing Spencer Street Station, for passengers using country and metropolitan rail services,

20 Department of Infrastructure Annual Report 2001–02 Access and Mobility

regional bus and coach services, and tram and taxi services. During 2001–02 the Victorian Government secured a The redevelopment will also incorporate significant commitment from the Commonwealth Government to fund commercial development opportunities in parts of the site 50 per cent of the construction of the freeway under the not required for the TIF. The project, which includes rail Road of National Importance (RONI) criteria, and $110 modifications and a signalling upgrade, is a Partnerships million has been spent on land purchase to date. Business Victoria initiative. case development for the consideration of Scoresby as a Partnerships Victoria project is in progress, and construction By the end of June 2002, a rigorous bidding process was is expected to be completed in 2008. For further drawing to a close and arrangements were in hand for the information see www.scoresbycorridor.vic.gov.au announcement of the award of contracts to redevelop the Spencer Street Station in partnership with the Victorian Box Hill tram extension Government. Construction is expected to start in the second half of 2002 and be completed by mid-2005. The The Box Hill tram extension is part of the $3.5 billion redevelopment will be the largest private-public partnership Linking Victoria program. The $22 million extension of the in Australia to date, with the successful consortium tram route from Union Road in Mont Albert to Box Hill is constructing a new transport interchange as well as expected to be opened in April 2003, and will deliver maintaining and operating the new facility for 30 years.* significant benefits to commuters and enhance the efficiency and effectiveness of tram travel. The project will: For further information on this project see www.linkingvictoria.vic.gov.au • create the biggest transport interchange in suburban Melbourne, with the tram service linking with existing Scoresby Integrated Transport Corridor train and bus services at Box Hill

The Scoresby Integrated Transport Corridor is an integrated • integrate Melbourne's tram network with the Box Hill package of major road and public transport improvements shopping centre, Box Hill TAFE College and local for the Scoresby Corridor, within Melbourne's eastern and hospitals south-eastern suburbs. The project includes the Scoresby • reinvigorate the central business area of Box Hill by Freeway, the introduction of new bus services, and the improving public transport access $43 million tram extension to Vermont South. A shared walking and bike track will also be provided along the • encourage more use of public transport by improving length of the freeway. access to and efficiency of tram services.

Further information can be obtained at Shared funding www.linkingvictoria.vic.gov.au/tram109

50% 50% Rail franchises The Victorian passenger rail franchises (V/Line Passenger, Victorian Commonwealth Yarra Trams, M>Tram, M>Train and Connex) continued to Government Government deliver passenger rail services and to upgrade services.

* On 2 July 2002, the Premier announced the award of the tender to Civic Nexus consortium.

Department of Infrastructure Annual Report 2001–02 21 Access and Mobility

During the year the rail franchisees came to government In January 2002, after an extensive public consultation and seeking review of a number of aspects of their franchise investigation period, the Minister for Planning and Minister agreements. for Transport jointly announced their decision supporting the recommendations of an independent Advisory Walking Action Plan Committee on the development of the freeway, and the

DOI, with the assistance of an Interdepartmental Group, is intention to further investigate the possibility of a linear developing a whole-of-State, cross-government plan to park along Merri Creek. In April 2002, the first contract of encourage and facilitate more walking in a range of the project (worth $4.1 million) was awarded to Abigroup settings and environments. The Walking Action Plan was Contractors for the design and construction of a bridge announced by the Minister for Sport and Recreation, Justin over the future Craigieburn Bypass and a road connecting Madden, on 21 November 2001 and is intended for the bypass with the Hume Highway. For further information completion before the end of 2002. see www.doi.vic.gov.au/transport

The Action Plan will devise a long-term strategy for walking Other Access and Mobility achievements managed by in Victoria, as well as actions and activities that can be VicRoads are outlined in the VicRoads Annual Report. taken in the immediate or near future to produce a For further information, see www.vicroads.vic.gov.au significant and positive effect on the level and extent of walking. The plan is being developed in consultation with a Ticketing Taskforce full range of stakeholders in both metropolitan and The Ticketing Taskforce was formed in August 2001 and regional Victoria. has continued to work on the identification of improvements to the Metcard system and a way forward Craigieburn Bypass for the development of a new and better ticketing system The Craigieburn Bypass is a $306 million project, fully for Melbourne's public transport users upon the expiry of funded by the Commonwealth Government, to link the the current contracted system. Hume Freeway at Craigieburn with the Metropolitan Ring The performance of the Metcard ticketing system has Road at Thomastown. The project is part of the Linking improved since the beginning of 2002 due to the Victoria strategy. The Hume Highway is a critical element of upgrading and reinforcement of ticketing machines to Melbourne's road network and the National Highway reduce vandalism. These changes, combined with the system, linking Melbourne's residents and industries to the support of the Victoria Police, have resulted in vandalism northern regions of the State and interstate. Superior transport links to the Port of Melbourne, industry in the Hume corridor, and northern centres is vital for the Vandalism economic prosperity of Victoria as a whole. 2001 2002

22 Department of Infrastructure Annual Report 2001–02 Minister Batchelor congratulates Preston Tram Workshops staff on a long history of achievement. Access and Mobility decreasing to less than 25 per cent of the level experienced New trams, trains and buses in December 2001. DOI has been negotiating with tram Victoria is in the midst of the most intensive program of franchisees to convert ticketing machines on trams to allow replacement and modernisation of trains, trams and buses for the sale of daily tickets by the end of September 2002. in its history.

TravelSMART Program • a further 104 new low-floor buses were delivered, bringing the total low-floor fleet to 375 The TravelSMART program is an innovative project aimed at encouraging people to choose sustainable travel • the first of 95 new low-floor trams entered service in alternatives such as cycling, walking or catching public September 2001. The new low-floor Citadis trams are transport, and reducing their dependency on the car. being used by Yarra Trams primarily along Tram Route It involves the State and local governments working with 109, providing easier access for all passengers. M>Tram individuals, households and organisations to identify and have the first of the Combino low-floor trams in promote these alternatives where possible. TravelSMART testing, in preparation for entering service. More than benefits participants by: 20 per cent of continuing B, A and Z3-class trams had been refurbished by 30 June 2002 • saving time • all 94 Comeng trains are being fully refurbished, • saving money by using the car less including new layout and communications facilities • improving personal health to meet the needs of people with a disability; • improving knowledge of local transport options 74 per cent of Comeng trains had been refurbished by 30 June 2002 • increasing local connections with neighbours and community. • 60 new trains are to be introduced to replace Hitachi trains over the next three years. The first trains are in There are three components to the TravelSMART program – testing, to be introduced in 2002–03 TravelSMART Work, which was successfully launched in 2001, TravelSMART Communities and TravelSMART Schools. • work was undertaken to fit a modern braking system The pilot TravelSMART Communities began in April 2002 in on the W-class historic tram fleet, with the first to be the City of Moreland, the City of Greater Dandenong and introduced back into service in August 2002. the City of Port Phillip, and is based on a similar program that has been successfully implemented in over the SmartBus past few years. The Perth program recorded more than a SmartBus will provide users with: 10 per cent decrease in the number of car trips over the • higher frequency, regular interval bus services that past year. TravelSMART Schools will be introduced later operate for much longer periods each day, including in 2002. late at night and on weekends For further information see www.travelsmart.vic.gov.au • routes specially branded with high-profile signage

Department of Infrastructure Annual Report 2001–02 23 Access and Mobility

• real time electronic signs at bus stops which will be BusPlan, TramPlan and TrainPlan constantly updated through use of global satellite The Government has set a target of 20 per cent of technology motorised trips in Melbourne to be made on public • priority measures to facilitate bus movements through transport by 2020. Significant improvements will need to traffic, making journey times both faster and more be made to public transport to attract new users. reliable. Long-term development plans for buses, trams and trains

The SmartBus trial is scheduled to begin in August 2002 on were started in 2001–02. Springvale and Blackburn Roads and, if successful, will be extended to other ‘cross-town’ routes throughout New bus services in outer metropolitan Melbourne. areas

www.linkingvictoria.vic.gov.au In 2001–02, the Government completed a successful round of projects to improve and introduce new bus services in outer metropolitan areas. Improvements to bus routes in Roxburgh Park, Rowville, Knox City, Ringwood, Dandenong, Glen Waverley, Werribee, Werribee South, Hoppers

New bus services in outer metropolitan areas

24 Department of Infrastructure Annual Report 2001–02 Access and Mobility

Crossing, Wyndham Vale, St Albans, Taylors Lakes, modal transport interchanges across Victoria. Since the Watergardens, Keilor Downs, Keilor Plains, Altona program started in January 2000, work to the value of Meadows, Footscray and Laverton include: more than $12 million has been carried out and improvements to 33 interchanges have been completed. • route extensions Significant achievements include improved facilities at • new route services Colac, Craigieburn, Geelong, Hoppers Crossing, Melton,

• increased frequency Sunshine and Wangaratta.

• improved links to railway stations Docklands tram extensions

• Sunday and public holiday services Tram services are being progressively extended into the • services to areas previously unserviced by public Docklands Precinct as development proceeds. Construction transport. of the tramway along Harbour Esplanade (Footscray Road) continued through the year and work began on the Latrobe Valley Access and Mobility extension of the Collins Street tramway. Study Rural School Bus Safety program The Latrobe Valley Access and Mobility Study began in School bus services are the focus of a major safety initiative March 2002 and is scheduled for completion by the end of under the $10 million Rural School Bus Safety program. the year. The study will ensure the integration of planning Improvements to a further 21 school bus interchanges processes to better cater for the area’s changing access and valued at $2 million were completed during the year, mobility needs, and is examining opportunities to: bringing the total number to more than 100 locations to • better integrate public transport with other modes of date and more than $7 million worth of works completed. transport services such as those provided for older The program has improved the safety and comfort of residents and people who have disabilities or are thousands of primary and secondary school students who geographically isolated use school bus services throughout rural Victoria. • address access and mobility needs for cyclists and pedestrians Swanston Bridge widening

• propose new models for the planning and delivery of Works were completed in conjunction with National Express public transport services and infrastructure in rural and on the $2.7 million widening of Swanston Street Bridge regional areas between Flinders Street and Batman Avenue, adjacent to Federation Square. The works included new tram • develop new strategies and initiatives to address access Superstops with wider safety zones and platforms to and mobility issues. provide disability access, signal controlled pedestrian crossings, separate bicycle lanes, drop-off zone and a wider Connecting Transport Services program footpath outside Federation Square. The project included The $20 million Connecting Transport Services program strengthening parts of Swanston Street Bridge to take continues to deliver significant benefits to public transport heavy vehicles. users, improving safety and passenger comfort at multi-

Department of Infrastructure Annual Report 2001–02 25 Access and Mobility

Station Pier management and development

Infrastructure upgrades worth a total of more than $18 million have been completed at Station Pier since 1999, as part of the Victorian Government’s commitment to attracting more cruise-ship visits to Victoria. Recent improvements include enhancements to the decks and berths, the installation of fully-automated waste water and sewage facilities, and enhancements to the international passenger terminal. These improvements have facilitated the arrival of two new Spirit of Tasmania ferries plying the return route from Melbourne to Devonport, which are due to start in September 2002.

Cruise ship numbers and frequency

Victoria achieved a record 31 cruise ship visits during the 2001–02 summer, including regional visits to Geelong and Wilsons Promontory. The season included four first-time visitors: Asuka, Amsterdam, Pacific Sky and Silver Shadow; it also boasted the second ‘full house’ in recent years, when the Spirit of Tasmania was joined at Station Pier on 20 February 2002 by the USA’s Legend of the Seas, Japan’s Asuka and Germany’s Amsterdam.

Implementation of the actions identified in Cruising Victoria, the strategy underpinning the development of Victoria’s cruise-shipping industry between 1998 and 2001, is complete. Some of the 34 actions completed included establishing the Melbourne Cruise Ship Committee to attend and manage all cruise-ship visits, putting in place a strategy for Victorian cruise-shipping, and identifying opportunities to secure more visits.

26 Department of Infrastructure Annual Report 2001–02 Seamless Freight and Logistics System

Department of Infrastructure Annual Report 2001–02 27 Seamless Freight and Logistics System

An integrated and seamless Key achievements freight and logistics system Independent Review of Port Reform that enhances global An Independent Review of Port Reform in Victoria was competitiveness and meets undertaken by Professor Bill Russell and completed in the needs of business December 2001. The review looked objectively at the results of port reforms of the mid-1990s, and the effectiveness of The key objective of the Seamless Freight and Logistics current arrangements in meeting the Government's policy System Outcome Group is to increase the competitiveness objectives for the ports sector. and integration of Victoria’s logistics industry and transport systems, with the ultimate aim of reducing costs in the The Government’s response to the review was finalised for supply chain. release in early July 2002 as Ports Agenda 2002.*

DOI has made significant progress in 2001–02 toward The key actions identified in the Government’s response achieving this objective, including the completion of a to the review include: review of Victorian port reforms, progress toward the • development of a Statewide Strategic Framework for all development of a Freight and Logistics Strategy for Victoria, Victorian ports the completion of more than $18 million worth of infrastructure upgrades at Station Pier since 1999, the • establishment of a new, single integrated corporation launching of the Port of Melbourne’s Environmental with an appropriate charter to manage the land and Management Plan, the construction of the Dock Link Road waterside functions of the Port of Melbourne extension, and the dual gauging of existing broad gauge • review the charter, structure and resourcing of the infrastructure of the Geelong Grain Loop. Hastings Port (Holding) Corporation to properly equip it

The Victorian Government recognises that a competitive to plan and provide for the potential future role of the freight and logistics industry will contribute to the Port of Hastings strengthening of Victoria’s export market, as well as • development of a specific Statewide strategy for local creating jobs and delivering direct benefit to the State’s ports economy. • legislative clarification of the safety and environmental The Government is committed to increasing rail’s share of responsibilities of ports, and support for improved port-related freight movements to 30 per cent across all performance through the provision of best practice commercial ports by 2010. This will lead to significant guidance material and the employment of marine safety environmental benefits for Victorian communities by inspectors reducing air and noise pollution, lowering road • measures to promote improved consultation processes maintenance costs, and limiting the social cost of by ports, and better relationships with local transporting freight by reducing the risk of road traffic communities and other stakeholders. accidents. Implementation of the government response will be driven by an implementation taskforce.

* Ports Agenda 2002 was released by the Minister for Ports on 12 July 2002.

28 Department of Infrastructure Annual Report 2001–02 Seamless Freight and Logistics System

Victorian Freight and Logistics Strategy Geelong Grain Loop

DOI, through its Ports and Marine Division and in Work to standardise the Geelong Grain Loop, a key freight consultation with industry and other stakeholders, is link to export markets in the Port of Geelong, started in developing a Freight and Logistics Strategy. The Strategy is October 2001 and will be completed in August 2002. expected to be completed before the end of 2002, and its This project involved the dual-gauging of existing broad- primary objective is to make recommendations about how gauge infrastructure, to enable access to the Geelong Grain to improve and sustain the performance of the Victorian Terminal by both broad and standard-gauge trains. freight and logistics industry for the benefit of service The works, included as part of the Victorian Government’s providers, purchasers, suppliers, producers and the whole Regional Rail Links program to standardise rail lines across of the community. Further information about the Strategy Victoria, will have the potential to offer great cost savings can be obtained from www.doi.vic.gov.au/transport to regional producers and freight providers. Further information can be obtained from Construction of the Dock Link Road www.doi.vic.gov.au/portsmarine extension Wodonga rail bypass The construction of Dock Link Road in the Port of Melbourne was at the point of completion at the end of This project will enable trains to run faster on the the financial year 2001–02, and was due to be officially Melbourne/Sydney interstate rail line, facilitating the opened in July 2002. Dock Link Road links road, rail and speedier movement of both passengers and freight. sea freight facilities at East and West Swanson Docks to An added benefit of this project is that the resiting of the the Dynon and South Dynon rail freight terminals. The rail line, which currently runs through Wodonga’s central extension of Dock Link Road to the Dynon rail freight business district, will alleviate the traffic problems caused terminals, at a cost of $3.5 million, will enable freight to be by the existing level crossing. The project will also provide brought to within one kilometre of the Port of Melbourne rail and intermodal infrastructure for a major freight by rail, thereby improving efficiency and minimising the logistics centre at West Wodonga. cost of freight movement. A public exhibition of the Wodonga Planning Scheme amendment was held in December 2001, and the project is Port of Melbourne’s whole-of-port planned to proceed in the second half of 2002. For further Environmental Management Plan information see www.doi.vic.gov.au/transport

The Port of Melbourne’s whole-of-port Environmental Management Plan was launched by the Minister for Ports in April 2002. The Environmental Management Plan was developed by the Melbourne Port Corporation in close consultation with port users, tenants and other stakeholders, and is a blueprint for guiding the future environmental management and sustainable development of the port. Site-specific environmental management plans are also being developed by port tenants for individual areas within the port.

Department of Infrastructure Annual Report 2001–02 29 Seamless Freight and Logistics System

Rail gauge standardisation Westgate container terminal DOI is completing the planning for and implementation project

of the $96 million Regional Rail Freight Links program, In the interests of increasing competitiveness in the sea- which will standardise key rail lines across Victoria. freight industry, DOI (through the Westgate Taskforce The standardisation of rail lines will offer new opportunities Steering Committee) participated in a rigorous tender for the Ports of Portland and Geelong, will open up rail process to test the market for the creation of a third transport for developing industries, and reduce transport international container stevedore. Economic and business costs in regional areas. See www.doi.vic.gov.au/transport circumstances in late 2001 and early 2002 revealed that the market had determined that the Port of Melbourne is not yet ready to accommodate a third stevedore operator.

Implementation of Victorian rail BALLARAT access regime HAMILTON The Victorian rail access regime was implemented on

GEELONG 1 July 2001, with the purpose of facilitating open access for freight to be declared over infrastructure including WARRNAMBOOL Victorian country rail networks, the Bayside network and PORTLAND Dynon terminals. In the event that parties cannot agree on the terms of access, either party may seek a determination from the Essential Services Commission, formerly the Office of the Regulator-General.

See www.doi.vic.gov.au/transport Port Phillip channel deepening

In December 2001, the Government confirmed its in- principle support for deepening the shipping channels to the Port of Melbourne in Port Phillip Bay – subject to the proposal meeting the requirements set down in the Environmental Effects Act 1978, the satisfactory resolution of technical issues relating to the proposal, and the acceptance by government of a sound financing strategy for the proposal. Phase 3 studies will involve more detailed economic, technical, environmental and social investigations, and are likely to be completed within two years. Further information can be obtained from www.doi.vic.gov.au/budget

30 Department of Infrastructure Annual Report 2001–02 Rural and Regional Development

Department of Infrastructure Annual Report 2001–02 31 This image is an artist's impression only. © V/line Passenger Services and Bombardier. Rural and Regional Development

Prosperous and sustainable Key achievements rural and regional communities Regional Fast Rail The Regional Fast Rail project will provide faster and better The key objectives of the Rural and Regional Development rail links between Melbourne and Geelong, Ballarat, Outcome Group are to: Bendigo and the Latrobe Valley in the biggest upgrade of • enhance the long-term prosperity, liveability and these main regional lines in 120 years. As the centrepiece attractiveness of rural and regional Victoria, and of the Linking Victoria program, the project will also deliver more frequent, reliable and comfortable services through • improve rural and regional Victoria’s accessibility to modern trains operating at speeds up to 160 kilometres per services and markets. hour. By providing improved access for rural and regional Infrastructure investment is critical in supporting economic Victoria to facilities and services, the Regional Fast Rail growth, linking communities to national and international project also contributes to DOI’s Access and Mobility markets, and helping to create strong and sustainable Outcome. communities. DOI's role in rural and regional development is to implement integrated transport and planning solutions that connect communities across the State, support economic growth and enhance employment and investment opportunities. Major infrastructure projects include the Regional Fast Rail projects to Ballarat, Bendigo, Geelong and the Latrobe Valley, the Calder Highway upgrade to Bendigo, the Geelong Road upgrade, and the reopening of country rail lines.

The Great Ocean Road Region Strategy and the development of Regional Action Plans for Ballarat and Bendigo are examples of DOI's strategic planning activities which will enable communities to respond positively to broader environmental, social, cultural and economic changes, and support sustainable growth and change in Following a rigorous tender process, on 25 June 2002 the rural and regional areas. Premier announced the awarding of contracts for the four works packages: Key achievements in this Outcome Group during 2001–02 are outlined in detail here. • Thiess Alstom Joint Venture – Ballarat and Geelong Corridors

• Regional Fast Rail Consortium (John Holland and Transfield) – Bendigo and Latrobe Valley

32 Department of Infrastructure Annual Report 2001–02 Rural and Regional Development

The signing of contracts marked the culmination of a The State Budget, delivered in May 2002, committed tendering process that began in May 2001 with the $21.5 million to this project in 2002-03, with a total invitation of Expressions of Interest. More than 500 project cost over four years of $70 million. In recognition kilometres of track will be upgraded under the contracts, of the Calder as a Road of National Importance (RONI), together with the installation of modern signalling systems. Victoria has sought matching funding of $70 million from The contracts and new travel times are listed below. the Commonwealth.

The Kyneton to Faraday project involves the construction of Regional Fast Rail a 21 kilometre high-standard four-lane highway between the two towns, and demonstrates the Government's Destination Contract cost New travel time $ million minutes commitment to investing in improved infrastructure to Ballarat 130 64 support growing populations in Melbourne's outer suburbs. Bendigo 183 84 The project also builds on related Calder Highway projects, including the current duplication works on the Carlsruhe Geelong 69 45 section of the highway. Latrobe Valley 115 95 Geelong Road upgrade

The project will benefit all residents and communities along The upgrade to the Geelong Road will help meet the the four rail corridors, as better track, better signals and Government’s objectives for improving access and mobility new trains will mean faster, more frequent and more of rural and regional Victoria to people, places, goods reliable services. Work on site will start in November 2002 and services. and be completed by mid-2005. Geelong Road is being upgraded as a high-standard and See www.linkingvictoria.vic.gov.au for further safer route between Melbourne and Geelong. When fully information. completed, four lanes will be available in each direction beyond the Western Ring Road at Laverton North, through Calder Highway upgrade to the start of the Maltby Bypass at Werribee. Three lanes (Kyneton to Faraday) will be provided each way between Werribee and Corio, on This project is part of a progressive upgrading of the Calder Geelong's northern outskirts.

Highway between Melbourne and Bendigo that is being The total project cost is $270 million. The Commonwealth jointly funded by the Victorian and Commonwealth Government is providing $120 million as a RONI, with Governments. The upgrade will increase safety and make it easier for regional businesses, industries and commuters to access Melbourne, resulting in reduced travel costs and Geelong Road upgrade time savings for all users.

The Calder Highway is the primary link between Melbourne and one of Victoria's main regional centres, Bendigo. Victoria Federal It provides access between Melbourne and Mildura, $150 million $120 million north-western and north-central Victoria, southern and the Murray River west of Echuca.

Department of Infrastructure Annual Report 2001–02 33 Rural and Regional Development

$150 million in State funding from the Better Roads Passenger services will be reintroduced in 2003 and 2004, Victoria Program. once works on 700 kilometres of track and other infrastructure necessary for the lines to reopen have been As at June 2002, approximately 24 kilometres of new completed. Supporting facilities such as railway stations will carriageway (each way) had been completed and reopened also be refurbished in readiness for the new services, and to traffic travelling at 100 kilometres an hour. Other major will begin in the second half of 2002. Existing bus services features now completed include new exits, sound barriers, on all four lines will be reviewed and coordinated with the a pedestrian bridge and rail overpasses. For further rail services. information see www.linkingvictoria.vic.gov.au Works required for the four lines include: Country passenger rail services • reactivating/upgrading level crossings Throughout 2001 and early 2002, DOI was involved in the • new decking on and refurbishment of bridges planning for the reintroduction of country passenger rail services to Ararat, Bairnsdale, Mildura and South Gippsland. • installation of signalling to control train movements at The reintroduction of these services will improve access and the crossover of the standard and broad-gauge lines mobility throughout Victoria for more than 200,000 • modifications to signalling and train control. regional Victorians, while also promoting regional development and tourism. See www.linkingvictoria.vic.gov.au for further information.

Mildura Fast trains to regional centres Other existing passenger rail services New, returned passenger rail ser vices Swan Hill

Cobram Yarrawonga Rutherglen

Echuca Wodonga Shepparton Dimboola Benalla Bendigo Seymour Ararat

Ballarat Bairnsdale

Sale Geelong Traralgon Warrnambool Leongatha

34 Department of Infrastructure Annual Report 2001–02 Rural and Regional Development

Great Ocean Road Region In addition to calling for public submissions, all councils Strategy and selected stakeholders were briefed individually about the development of the Strategy, and a stakeholder DOI is leading a joint State and local government study to workshop was held in Lorne in late October 2001. develop a strategy for the management to 2020 of the Community workshops were also held in Melbourne, Great Ocean Road region (the area between Torquay and Anglesea, Colac, Apollo Bay, Warrnambool and Port Warrnambool and between the coast and the Princes Campbell during October and November. Highway). The Strategy's primary focus is on transport and Strategy options are currently being developed with land-use planning for managing coastal growth, however, it a view to releasing a draft strategy in early 2003. is being integrated with other key land and environmental Further information can be obtained from strategies such as the Catchment Management Strategies www.doi.vic.gov.au/greatoceanrd and the Victorian Coastal Strategy. The development of integrated strategies, such as that for the Great Ocean Road Region, is also contributing to DOI's objective of achieving liveable communities across Victoria. The project is being undertaken with extensive public consultation.

A Discussion Paper was jointly launched by the Premier and Ministers Thwaites and Batchelor in October 2001 at Warrnambool.

Geelong

ay ighw Princes H TORQUAY

Colac Anglesea WARRNAMBOOL ad Ro n a e c Lorne O Port Campbell t a re Lavers Hill G

Apollo Bay

Department of Infrastructure Annual Report 2001–02 35 Rural and Regional Development

Ballarat and Bendigo Regional Area Improvement Program

Action Plans The Area Improvement Program was established in The Ballarat and Bendigo Regional Action Plans will provide 2001–02 to assist rural communities to facilitate and strategic direction and recommendations for actions by DOI implement practical ‘on ground’ sustainable land-use and local councils to manage and promote sustainable planning solutions. Two pilot projects, with an allocation growth and deliver improved services. of $60,000 each, have begun in the areas of Flowerdale and Korumburra. Consistent with the Victorian Government's focus on growing the whole of Victoria, the Plans will complement a range of other strategies and strategic projects including:

• Metropolitan Strategy

• fast rail to regional centres

• upgrading and reopening of country rail services

• rail standardisation

• Calder Highway upgrade.

The Action Plans are being developed in partnership with local government and the community. Subject to government and council approval, both are expected to be completed by mid-2003. The plans aim to address issues arising from development pressures along the freeway and fast rail corridors, and will also be looking at the opportunities for growth in the region, capitalising on infrastructure investments such as fast rail. They will provide a framework within which government and councils can consider land-use decisions and plan an integrated transport network to meet regional needs.

36 Department of Infrastructure Annual Report 2001–02 Liveable Communities

Department of Infrastructure Annual Report 2001–02 37 Liveable Communities

Liveable communities Metropolitan Strategy across Victoria Throughout 2001–02, DOI has been developing the Metropolitan Strategy, a key project which aims to create a The broad objectives of the Liveable Communities Outcome bold vision for managing growth and enhancing Group are to: Melbourne's liveability over the next 30 years. The project is • deliver an efficient and effective planning system which being developed with a whole-of-government perspective. enhances the quality of our living environments DOI has continued to work with the community, local government, business and industry groups to develop a • improve the accessibility and sustainability of the strategy for shaping our city in a way which better meets metropolitan urban system, and the needs of all people who live, work and visit Melbourne • deliver safer and more vibrant streets and public spaces. and the surrounding region.

Key achievements in this Outcome Group are outlined The Metropolitan Strategy is due to be released in Spring below. They include a range of improvements to planning 2002 as a statement of government intent, followed by a systems, including the introduction of ResCode, three-month consultation period that will focus on development of the Metropolitan Strategy, continuation of implementation mechanisms. Further information about the the Pride of Place program to support urban design, Strategy and its development is available from the DOI web master-planning for Transit Cities, completion of the Camp site, at www.melbourne2030.vic.gov.au Street, Ballarat redevelopment, and the preparation and release of the Government Heritage Charter. Pride of Place Key achievements The $9 million three-year Pride of Place urban design grants program concluded on 30 June 2002, having funded 161 ResCode projects across the State. Municipalities and alpine resort management boards were awarded grants for the purposes ResCode is a package of provisions for residential of: development that came into effect across Victoria on 24 August 2001. The new provisions make the residential • creating urban design frameworks development process more certain, user friendly and • undertaking capital works to assist communities, to transparent. ResCode ensures that new development better build on local character and heritage respects the character of Victoria's streets, suburbs and towns by making neighbourhood character the mandatory starting point for the assessment of development $1.3 million applications and introducing higher standards to protect residential amenity. Rural and Regional Metro ResCode was developed following extensive consultation with a wide range of stakeholders, and balances the needs and concerns of residents' groups, the building industry and local councils. Further detailed information relating to ResCode is available at www.doi.vic.gov.au/rescode

38 Department of Infrastructure Annual Report 2001–02 Liveable Communities

• attracting further investment and activity million redevelopment of the old saleyards site which is set to generate up to 4,000 local jobs, 1,400 new homes, new • contributing to a greater sense of local pride. opportunities for local traders, enhanced public safety and During 2001–02 a total of $1.3 million was approved for a stronger sense of place for the area through the creation 47 projects, of which 70 per cent were allocated for of a vibrant new community hub. The project is cross- projects in rural and regional Victoria. government in approach, and involves DOI staff from the

As well as the very considerable social and economic Planning, Heritage and Building Division and the ODPT, the benefits flowing to small towns and regional centres from City of Greater Dandenong, the Urban and Regional Land relatively modest grants, feedback from communities Corporation (URLC), the Department of Justice, VicTrack indicates that other highly valued benefits include greater and Freight Australia. community cohesion, improved perceptions of safety, and Further information on Transit Cities is available at an increased appreciation of local character and heritage. www.doi.vic.gov.au/transitcities

Transit Cities Camp Street, Ballarat, development

Transit Cities is a large-scale transport and land-use The Camp Street Project involved the redevelopment of the planning project aimed at creating safe, vibrant and former judicial, police and Victorian Government precinct in accessible communities centred on major public transport Camp Street for educational, artistic and cultural purposes, nodes. Five metropolitan sites and three regional sites have and was implemented through a cooperative partnership been identified for development as Transit Cities: between the Victorian Government (DOI and Arts Victoria), Dandenong, Footscray, Frankston, Ringwood, Sydenham, the Commonwealth Government, the University of Ballarat Ballarat, Bendigo, and Geelong’s ‘Western Wedge’. and the Ballarat City Council.

The Victorian Government contributed approximately $17.5 million in land, buildings and funding to facilitate the relocation of the University of Ballarat Visual and Performing Arts Faculty, and for refurbishment of buildings in the precinct. The Ballarat Fine Art Gallery was extended with funding from the State, the City of Ballarat and generous donations from the community. Alfred Deakin Place, a major public plaza that forms the centrepiece of the precinct, was opened by the Premier in December 2001 as the last event in the Federation celebrations calendar.

The redevelopment is the largest project of its type in regional Victoria and brings life and vitality to an important and historic precinct within central Ballarat. More information can be obtained from The Dandenong Transit Cities project was launched by the www.doi.vic.gov.au/regions Premier and Planning Minister, the Hon. Mary Delahunty MP, in March 2002. This program includes plans for a $250

Department of Infrastructure Annual Report 2001–02 39 Liveable Communities

Improved planning systems • additional space for staging major events and festivals along the Yarra River, including the Melbourne Festival, DOI introduced a range of online improvements to Moomba, and the 2006 Commonwealth Games. Victoria’s planning systems across 2001–02 that have enabled easier and more flexible access to planning It will be located at the southern end of Sandridge Rail schemes and planning information. Bridge, and complement the retail, residential and commercial uses of the adjoining Freshwater Place Planning Schemes Online is available through the DOI development. Funding announced in the Budget will allow Internet site (www.doi.vic.gov.au/planning), and provides design and development to commence, with completion interactive access to ordinance text and to zone and overlay expected by the end of 2004. maps. Each planning scheme has its own ‘home page’ with a common page design and functionality that will also be Sandridge Rail Bridge used on the updated Planning Schemes CD-ROM product. Planning Schemes Online is free for personal use and is Sandridge Bridge, part of the Yarra Plan strategy, is an regularly updated with planning scheme amendments and important part of Melbourne's heritage that has remained is linked to other resources. disused since 1987. The Victorian Government has committed $4 million to preserving this heritage-listed Planning Certificates Online, the first DOI e-commerce structure and reclaiming it for the people of Victoria. project that allows the online purchase of Planning A cycle and pedestrian link will be created on the bridge, Certificates, was successfully launched in March 2002. which will also double as a public stage to be used for: It can be accessed at www.doi.vic.gov.au • permanent and temporary public art installations

Yarra Plan • orientation of major events around the river precinct, The Yarra Plan is a Victorian Government strategy to including arts-related events and festivals such as revitalise the south and north banks of the Yarra River along Moomba, the Melbourne Festival, the Melbourne Food the central business district in the lead-up to the 2006 and Wine Festival and the Fashion Festival Commonwealth Games, which will oversee $4 billion worth • opportunities for themed markets such as night markets of private and public investment in the area. Two public and specialist food markets on regular or seasonal basis projects received funding in the 2002–03 State Budget announced in May: a pedestrian and cycle link across • extension of the programmable events and arts space Sandridge Rail Bridge (see below), and the creation of a available along the river precinct, enhancing facilities public plaza at Queensbridge Square. Both projects will be for attracting visitors and tourists. developed in partnership with the City of Melbourne and Australand. Public Heritage Program The $15 million three-year Public Heritage Program was The Queensbridge Square project will provide: designed to assist State and local government agencies and • new civic space for the growing number of residents other public bodies in restoring and maintaining important and visitors to Southbank public heritage assets. During 2001–02 a total of more • a major new celebration site for Melbourne than $4 million was approved for 54 projects throughout Victoria.

40 Department of Infrastructure Annual Report 2001–02 Liveable Communities

The year also saw the completion of a large number of In April 2002, the Minister for Planning released for public works, ranging from major projects such as the Ballarat comment an Issues and Options Paper for the Environment Fine Art Gallery, to smaller community projects such as the Assessment Review (EA Review). The Issues and Options restoration of Kow Plains Homestead in Cowangie, the Paper provided a catalyst for discussion and feedback for restoration of Rushworth Shire Hall, the repair of the improving environmental assessment procedures under the Entrance Walls at Lakes Entrance, and Maltzahn’s Environment Effects Act 1978. Information sessions and farmhouse project in Lalor. community workshops were held in May and June 2002, and the period for public submissions closed in late June 2002.

An independent Advisory Committee appointed by the Minister for Planning is expected to complete its report on the EA Review by December 2002, following public hearings. The committee will then submit its report to the Minister. Further information on the EA Review is available at www.doi.vic.gov.au/planning

Government Heritage Charter PLANET

Throughout 2001–02, Heritage Victoria was involved in the PLANET is an ongoing education initiative of DOI and the development of a Government Heritage Charter. The charter Municipal Association of Victoria (MAV) providing sets out a number of policies and guidelines for those professional development and training opportunities for managing Victorian government heritage assets, to ensure users of the planning system. The program targets skill- that the statutory requirements of the various pieces of sharing, skill development and the pursuit of ‘best practice’ legislation involving heritage are met and that Victoria’s to meet the needs of planning professionals and others. heritage assets are appropriately preserved for current and In the past financial year, PLANET conducted 17 future generations. metropolitan and eight regional seminars, recording The charter, which is expected to be completed by the end 848 registrations and rating a 95 per cent satisfaction level of 2002, has been developed in response to community among participants. PLANET launched its innovative web expectations of the Government to lead by example in the site (www.doi.vic.gov.au/planet) in March 2002, providing care and management of public heritage assets. subscribers with up-to-date information regarding seminars and events. Review of environment assessment procedures

The Victorian Government is committed to promoting ecologically sustainable development across Victoria. It is vital that this development should be balanced – appropriately protecting and preserving Victoria's environment, while promoting good development.

Department of Infrastructure Annual Report 2001–02 41 Liveable Communities

Practice Notes

DOI’s Statutory Planning Branch produces Practice Notes that provide guidance to users of the planning system and the community. The practice notes listed below were released in 2001–02:

• Understanding Neighbourhood Character

• Making a Planning Application for a Dwelling in a Residential Zone

• Assessing a Planning Application for a Dwelling in a Residential Zone

• Energy Efficiency Rating

• Biodiversity

• Applying for a Permit in the Rural Zones

• Planning Considerations for Horticultural Structures

All Planning Notes are available electronically; see www.doi.vic.gov.au/planning

42 Department of Infrastructure Annual Report 2001–02 Local Governance

Department of Infrastructure Annual Report 2001–02 43 Local Governance

Engaged and informed debate in the Spring 2002 Parliamentary session. The Bill, which was welcomed by the local government sector and communities supported by the broader community, will amend the Local Government a strong and effective local Act 1989 and the Victorian Constitution Act 1975, with the government sector proposed legislative changes addressing:

The broad objectives of the Local Governance Outcome • council codes of conduct Group are to enhance: • disclosure of conflicts of interest

• local governments’ capacity to effectively respond to • transparent decision-making the needs of their communities • sound financial management • the capability of local government to manage the • accountable public reporting quality, efficiency and effectiveness of infrastructure • democratic electoral systems, and • the capacity and opportunities of communities to participate in, and influence, decision-making. • the role and charter of local government.

Significant progress toward fulfilling these objectives was The update project supports the Growing Victoria Together made in 2001–02. Key achievements include the update of framework as well as the Government's commitments to the Local Government Act, the first report on Best Value build cohesive communities, to promote diversity of Principles by the Best Value Commission, and the representation in local government, and to secure the administration of the Government’s Public Library Funding financial base for Victoria's long-term well-being. Program. Information on the Bill is available at www.doi.vic.gov.au/localgov The Local Governance Outcome Group focuses on increasing community consultation, to ensure that Community consultation communities can actively participate in and influence decision-making. Community consultation underlines the DOI engages extensively with the community to ensure development of the projects and achievements listed below. effective relationships and consultation occurs on a range of issues including:

Key achievements • Metropolitan Strategy – more than 2,200 people attended forums to participate in the development of Local Government Act update the strategy at more than 34 community forums held in DOI’s Local Government Division (LGD) undertook an metropolitan and regional Victoria. extensive consultation process in the second half of 2001 as • development of the Freight and Logistics Strategy part of its review and update of the Local Government Act 1989. More than 170 submissions were received during the • development of Regional Strategies such as the Great consultation process, and the majority of Melburnians Ocean Road Strategy

supported the proposed directions. • planning panels

The Local Government (Update) Bill was introduced into the • Environmental Management Plans Legislative Council in May 2002, and is scheduled for

44 Department of Infrastructure Annual Report 2001–02 Local Governance

• public transport Best Value

• stakeholder forums. The Local Government Best Value Commission Annual Report 2001 was released early in 2002, describing the Report on local government sector commission's first year of activity. The report is based on performance substantial discussions with councils and peak bodies throughout the State in relation to implementing the Best The sector has agreed to report on Victorian Local Value Principles, which replaced Compulsory Competitive Government Indicators in their Annual Reports (Report of Tendering of the previous Government. Operations section), and the first such report, Local Government in Victoria 2001, was released by the Minister The commission found that Best Value had led specifically for Local Government early in 2002. to improvements in community consultation by councils. The Minister for Local Government has accepted the The report brings together information from all councils’ report's recommendations, and DOI will work with councils annual reports, to assist the State in assessing the overall and peak bodies over the coming year to address these position of local government in Victoria. The report will be recommendations. The report is available at published annually, to enable the sector and the community www.doi.vic.gov.au/localgov to consider the trends in the performance of Victorian local government. The Local Government in Victoria 2001 report, Living Libraries Program together with the Annual Constituent Satisfaction Survey Research Results (July 2001), are available at The Living Libraries: Public Library Infrastructure Program is www.doi.vic.gov.au/localgov a three year $12 million program aimed at modernising public library buildings in Victoria. It is funded through the Community Support Fund and managed by DOI’s Local Government Division. In 2001–02, 14 projects received grants totalling almost $4 million.

The Living Libraries program enables councils wishing to improve their existing public library building infrastructure to apply for a grant of up to $500,000. Funds are directed toward the construction of replacement library buildings and the extension, renovation or refurbishment of existing library buildings. Living Libraries grants aim to:

• provide a modern, long-life building infrastructure for library service delivery

• support innovation, flexibility and creativity in the development of community library facilities.

Further information can be obtained at www.doi.vic.gov.au/localgov

Department of Infrastructure Annual Report 2001–02 45 Local Governance

Public libraries grants • a special grant of $1.27 million for additional books and resources, with an emphasis on materials for Public libraries are the prime responsibility of local councils. children and teenagers. The Government contributes funds to ensure public libraries remain a vibrant, modern and effective resource for all • several one-off grants including $270,000 for the Victorians, and the Minister for Local Government is Beyond the Branches program, which funded 38 responsible for policy development for public libraries. projects in 35 library services to provide services to users beyond the established network of branch libraries. The establishment of a Ministerial Advisory Council on Public Libraries during 2001–02 was an important step in Infrastructure renewal ensuring that communities can access effective library services as the world of information and community DOI has developed a number of supportive strategies to cohesion changes. assist the local government sector to develop its management skills to meet the renewal challenge. DOI administers the Government's Libraries Grants, with In 2001–02, the Local Government Division held a one-day three-year Funding and Service Agreements with: seminar for councillors and Chief Executive Officers on • 17 regional library services (each serving two or more infrastructure management, and has worked with the councils) Department of Treasury and Finance to develop a study of alternative financing options and to explore the applicability • 25 single-council library services, and of Partnerships Victoria in managing infrastructure renewal. • two Statewide library services for people with print DOI allocated $400,000 in 2001–02 to assist rural councils disabilities. in the development of asset management plans. The Funding and Service Agreements cover two program areas: Building infrastructure asset • core funding – provided to assist councils in the management capacity in local provision of public library services government

• local priorities funding – local service priorities identified A report entitled, Facing the Renewal Challenge (released in in the library service or specific service programs. 2000), identified that local governments had significant problems in managing the renewal and maintenance of In 2001–02 the Government contributed more than their current infrastructure. During 2001–02, DOI has $25.4 million in grants to public libraries. This includes: worked with local governments to address this problem • $24.1 million in recurrent funding grants to public through enhancing skills in asset management, libraries and the libraries for people with print implementing asset management plans and measuring disabilities performance in this area.

46 Department of Infrastructure Annual Report 2001–02 Local Governance

National Competition Policy grants to Toomnangi Report – Indigenous local government communities and local government

The Commonwealth Government allocates money annually Toomnangi was launched by the Municipal Association of to each State for compliance with the requirements of Victoria (MAV), the Aboriginal and Torres Strait islander National Competition Policy (NCP), and although there is no Commission (ATSIC), and the Victorian Government in May requirement to do so, Victoria shares this funding with 2002. Toomnangi reports on the nature and breadth of local government. A total of more than $10 million was relationships between local government and Indigenous paid to Victoria’s councils during the year in recognition of communities in Victoria. their NCP compliance in the year to 30 June 2001. Toomnangi (which means to talk and pass on information) Each council received a minimum payment of $100,000, provides local government with case studies, examples, with the largest payment being $190,000. Councils are statistics and ideas on initiatives that can strengthen permitted to spend this money as they see most community relationships and help advance the appropriate. reconciliation process. The Toomnangi report is available at www.doi.vic.gov.au/localgov

Panel appointed for Delatite Shire Council

The terms of reference for the independent panel appointed to examine the de-amalgamation of the Delatite Shire Council were announced in March 2002. The Local Government Panel's terms of reference will ensure a thorough review of the feasibility and viability of the Delatite Shire Council becoming two separate municipalities based around Benalla and Mansfield. The role of this panel is unique as no other council in Victoria has been subject to a major restructure since Statewide amalgamation of local government in 1996–97.

More information is available at www.doi.vic.gov.au/localgov

Department of Infrastructure Annual Report 2001–02 47 Local Governance

Albury-Wodonga

In March 2001, the Premiers of New South Wales and Victoria announced a proposal to merge the border local governments of Albury and Wodonga into a single city. To explore the ramifications of the proposal and to gauge the level of community support, a local consultative process (headed by the Hon. Ian Sinclair) was conducted and a research report was commissioned.

An intergovernmental working group with representation from both State Governments and the respective local governments has overseen the development of a proposed model for the merger. DOI’s Local Government Division co-chaired the intergovernmental working group and oversaw the work undertaken.

The working group has submitted its report to both State Governments for their consideration. The initial examination of the feasibility of the proposed merger of Albury and Wodonga concluded that further preparatory work is required, particularly on ways to resolve identified anomalies in cross-border legislation, education, administration and statutory licensing.*

* On 26 July, the State Premiers jointly announced the establishment of a taskforce to undertake the further work required.

48 Department of Infrastructure Annual Report 2001–02 Infrastructure Delivery and Management

Department of Infrastructure Annual Report 2001–02 49 Infrastructure Delivery and Management

Cost effective investment in Key achievements and management of Project Review and Delivery Committees infrastructure development The Victorian Government requires infrastructure projects to in Victoria be environmentally, economically and socially sustainable. The broad objectives for this outcome group are: The Government’s Growing Victoria Together framework outlines priority actions for maintaining responsible • to deliver best practice infrastructure for Victoria financial management and investment in long-term social • best practice management of infrastructure. and physical infrastructure for the State.

DOI is building on its extensive project planning and DOI is committed to having the skills and processes in place management expertise to meet these objectives. to ensure that projects achieve the outcomes sought and provide value for money. Two executive level committees During 2001–02, two senior internal committees were were established in 2001–02 to enable DOI to better established to help drive and improve DOI’s capacity to develop, assess and deliver key infrastructure projects. ensure cost-effective investment in, and management of, infrastructure development in Victoria. The Project Review Committee operates as a peer review to rigorously assess the scope and cost of potential In February 2002, following machinery-of-government infrastructure projects during their development phase, and changes, Major Projects Victoria (MPV) was incorporated to assess their alignment with the Government’s triple- into DOI. Through MPV, DOI manages and facilitates key bottom-line approach and associated policies. During strategic development and construction projects that 2001–02, the committee managed to expedite the project enhance the economic and cultural infrastructure of the development process and to ensure that the best project State. DOI provides advice on property development and options are chosen to achieve the required project construction related issues to the Minister for Major objectives. Projects and agencies across government, and provides a general oversight of the activities of the Docklands The Project Delivery Committee was established to review Authority and the Federation Square Management the scope, cost and scheduling of projects during the Company. Consultancy advice and project management are project delivery phase. The committee worked to improve also provided to other areas of the Victorian Government the project delivery process so that each approved project on a cost-recovery basis. was delivered to the required quality standards, within budget and on schedule. At the end of the 2001–02 financial year, DOI was project managing or supervising more than $4 billion worth of Multi-Year Infrastructure Investment projects, spread across several Victorian Government portfolios. DOI, through MPV, project-managed more than Strategy $153 million turnover in construction activity across several DOI’s Multi-Year Infrastructure Investment Strategy (MYS) key projects during the year. has been further developed during the year. The MYS identifies priority investments that reflect the Government’s stated policy objectives and are directly linked to the delivery of priority outcomes over the medium to long

50 Department of Infrastructure Annual Report 2001–02 Infrastructure Delivery and Management

term. Projects included in the MYS reflect the Government’s Australian Art Collection), the Australian Centre for the triple-bottom-line approach and Growing Victoria Together Moving Image, and the headquarters of SBS Victoria. framework, particularly in relation to the distribution of investment benefits across the whole of the State. The Australian Synchotron

The decision to site the Australian Synchotron Project Project evaluation guidelines adjacent to Monash University in Clayton was announced DOI has developed and adopted comprehensive guidelines during the year. The facility will position Victoria at the that ensure more stringent project appraisal and evaluation forefront of biotechnology and scientific research processes are followed throughout DOI. internationally.

These guidelines ensure projects are considered in the The Synchotron facility is due to open in 2007, and is context of their impact on economic, social and expected to generate up to 700 new jobs and bring up to environmental criteria (triple-bottom-line). They support a $65 million into the Australian economy each year. capital project development process that ensures high DOI is coordinating the Synchotron development under a priority and strategic projects are available for consideration dedicated project director within MPV. The project is being by government as part of the annual budget cycle. funded through the Department of Innovation, Industry and Regional Development. The concept design of the Docklands facility has been confirmed by an international team of The Docklands Authority is responsible for promoting and Synchotron experts, and the Australian scientific community facilitating development of the former port and railway has been engaged to identify the end-user requirements. land now referred to as the Melbourne Docklands. Further information about the project can be obtained from Development of the Melbourne Docklands is a long-term www.synchrotron.vic.gov.au multi-billion dollar project involving private-sector investment facilitated by the Government through the Docklands Authority. By June 2002, almost 66 per cent of the project had been contracted, largely through private- sector investment, and close to 33 per cent of the project was under construction.

Further information about Docklands can be obtained from www.docklands.com

Federation Square

Work on the Federation Square project continued during 2001–02, with the space planned to open to the public in the second half of 2002. A number of major new facilities have been developed as part of the project, including the Ian Potter Centre (housing the National Gallery of Victoria

Department of Infrastructure Annual Report 2001–02 51 Infrastructure Delivery and Management

National Gallery of Victoria • developing the Royal Agriculture Society as a creative catalyst to continue to meet these objectives into the The redevelopment of the National Gallery of Victoria in future. St Kilda Road is being project managed by DOI for the funding agency, Arts Victoria. The main works contract for For further information see www.majorprojects.vic.gov.au the project continued throughout the year, resulting in completion of 75 per cent of the construction works. It is expected that the main works contract will be fully complete in mid-2003. Exhibition fit-out works have been designed and documented by the design consultants, with construction expected to commence in the final quarter of 2002. The completely refurbished Gallery is due to open to the public in the second half of 2003 (see www.majorprojects.vic.gov.au).

Royal Melbourne Showgrounds

The Government and the Royal Agriculture Society of Victoria have agreed to form a partnership venture for the purpose of redeveloping the Royal Melbourne Beacon Cove Showgrounds. The State will contribute a maximum of $101 million to this project, which is being project The redevelopment of a 30-hectare former industrial managed by DOI, with funding provided through the waterfront site at Port Melbourne is being undertaken by Department of Natural Resources and Environment. The the Mirvac Group in partnership with the State revitalisation of the Showgrounds is expected to be Government, through MPV. The completed first stage completed during 2006. Objectives set for the project comprises a medium-density residential development of include: 900 houses and apartments. Land reclamation has made it possible to create a boat harbour, a retail and tourism • revitalisation of the Showgrounds, creating a high- precinct, and a waterfront pedestrian promenade between quality venue for events and exhibitions while Station and Princes Piers. Restoration of the historic Port remaining sensitive to the heritage aspects of the site Melbourne railway station is being undertaken, and work • securing the Royal Melbourne Show as a significant will begin before the end of 2002 on and the former Bay State event Steamer finger pier and kiosk.

• contributing to the growth of the food and During 2001–02, the Minister for Planning broadly agribusiness sector accepted the recommendations of an Advisory Committee established to review the Mirvac Group’s proposals for • developing improved understanding between urban Beacon Cove Stage 2. The recommendations supported a and rural communities residential development on Princes Pier, together with a greater mix of public, community and commercial uses that will make the historic structure a focus for visitors as well as

52 Department of Infrastructure Annual Report 2001–02 Infrastructure Delivery and Management

residents. A revised proposal is being developed for this DOI, working with a specialist advisory committee chaired area, to ensure that reclaimed land is used primarily for by MPV, completed public consultation during the year to public and recreational purposes. It is envisaged that explore issues relating to the siting of soil recycling and revised proposals will be approved by early 2003, with treatment facilities. This process identified a number of development commencing in the second half of that year potential sites and operators for these facilities. (see www.majorprojects.vic.gov.au). A site-searching process was begun using Geographic Information Systems (GIS) and the government-owned land State Library of Victoria register. It is expected that at least one soil recycling and The State Library of Victoria was listed during the year as treatment facility will be operating in Victoria by early one of the world’s thousand most significant buildings of 2004, to deliver government policy to reduce the volume of the twentieth century. The staged restoration program for contaminated soil going to landfill. Siting processes for a this labyrinthine complex will ensure the preservation of the long-term repository for intractable hazardous waste will heritage building and its significant features for future start once the soil treatment facility is finalised. generations. The project is being managed by MPV, with funding provided through Arts Victoria. Commonwealth Games Athletes’ Village

The reinstatement of the skylights in the Dome Reading DOI is currently overseeing a tender process for the Room was completed in June 2002, and the National construction of the Commonwealth Games Athletes’ Gallery of Victoria was preparing to leave its temporary Village. Providing accommodation for 6,000 athletes and premises in the Library complex in July. Areas vacated by officials, the village will be located at one of two sites, the gallery will be progressively reinstated for library use, either a 20-hectare site at the former Royal Park Psychiatric and are expected to be available to the public in the second Hospital in Parkville or at Melbourne’s Docklands. half of 2003. The village will be developed as a joint venture between the Victorian Government and the private sector. An Expression Malthouse Plaza Project of Interest process started in 2001, with the tender Construction of the Malthouse multipurpose arts complex evaluation to be completed in the second half of 2002, at in South Melbourne was completed in May 2002 and which time a shortlist of potential developers and a landscaping of the surrounding area is under way. The preferred site will be announced. The village is expected to $11.6 million contemporary arts building, complementing be completed by the end of 2005. the existing Malthouse Theatre, is due to open in the final quarter of 2002. Melbourne Sports and Aquatic Centre – Stage 2 Hazardous Waste Siting Project Approval has been granted for the detailed planning, The identification of suitable sites for the establishment of design, documentation, community consultation and modern soil recycling management facilities is a complex tendering to proceed on the construction of the second and sensitive matter. The Victorian Government is stage of the Melbourne Sports and Aquatic Centre (MSAC). committed to finding and implementing viable, sustainable The $56 million project is due for completion by December and equitable solutions to this problem.

Department of Infrastructure Annual Report 2001–02 53 Infrastructure Delivery and Management

2004, and will enable MSAC to host a range of aquatic Austin and Repatriation Medical Centre and other sports for the 2006 Commonwealth games. Redevelopment, and Mercy Hospital for New facilities will include: Women Relocation Project (AR/M • a 54-metre permanently roofed outdoor competition Project) pool The AR/M project is the largest health project to be • improved hydrotherapy and leisure water facilities undertaken in Victoria. The $325 million project will • a sports house (administration and meeting space for transform the current Austin and Repatriation Medical sport and recreation associations). Centre facilities and relocate the Mercy Hospital for Women to provide specialist and general obstetric and gynaecology The new facilities will complement the existing squash and services to the north-east community. badminton courts, lap pool, wave pool, table tennis hall, 75-metre 10-lane swimming pool, water slide, café and bar, The redevelopment will also provide 400 acute beds, a new crèche and children’s activity centre. emergency department, intensive and critical care units, two additional operating theatres, expanded day procedure Mont Park facilities, improved psychiatric services and veterans’ mental heath services. DOI is working with the private sector and La Trobe University to redevelop the Mont Park, Plenty, Gresswell The Austin and Mercy Hospital towers are to be completed and Macleod hospital sites and create a new integrated by the end of 2004, with full project completion expected residential, education and research precinct adjacent to by the end of 2006. La Trobe University.

The former hospital buildings, which have high heritage values, are to be preserved and used for research and academic purposes, and the attractive parkland setting will also be retained. The mixed-use development will support academic research and develop a residential precinct that includes community housing, while preserving the parkland habitat and heritage values, in line with the Government’s Growing Victoria Together framework.

54 Department of Infrastructure Annual Report 2001–02 Organisational Capability Building

Department of Infrastructure Annual Report 2001–02 55 Organisational Capability Building

DOI has the capability and Key achievements capacity to deliver high- Leadership and people management quality, responsive, accessible and efficient Chief Operating Officer services The position of Chief Operating Officer was created, and the appointment of Howard Ronaldson to fill this position In addition to its responsibilities for local government, announced in May 2002. The role of Chief Operating transport and strategic and land use planning, DOI has Officer is a pivotal one in enhancing DOI’s capability to been given responsibility by the Victorian Government for deliver the Government's outcome expectations for capital the planning and delivery of very significant infrastructure investment and capital project delivery. The position carries projects for the State – on time and on budget. DOI has in with it a range of responsibilities aligned with the delivery place sophisticated strategies, systems and processes to of DOI's key business outputs and capital works program, enable DOI to meet these responsibilities. and the development of DOI’s commercial skills. The broad objectives in the Organisational Capability Building Outcome Group are to: Leadership and development

• provide and exercise leadership and people The leadership development framework offered to Executive management Officers supports the development and consolidation of executive capabilities and tools/techniques required to meet • continue to build and develop the skills of its staff in the needs of DOI and the Government. policy development, and project management and delivery Management development offered by DOI provides the opportunity to enhance capabilities through experience, • have in place the business systems and processes to education and personal career planning. By focusing on the support our organisation. development of practical 'how to' capabilities, the programs Key achievements in this Outcome Group are listed below, provide a learning pathway for emerging and advanced under the broad headings of leadership and people managers to fully integrate and apply knowledge and skills management, people skills, and business systems and already acquired. processes. Coaching services for staff and executives assists individuals at all levels to gain results and focus on key areas of learning.

DOI’s mentoring program targets high-potential staff, and provides for a talent pool for future leadership/project positions. It provides a means for mentors to pass on knowledge, as well as offering a broader perspective for young staff. The program fosters the creation and oversight of new business, and fills individual gaps in DOI skill-sets to meet corporate needs.

56 Department of Infrastructure Annual Report 2001–02 Organisational Capability Building

Creation of Infrastructure Projects Division Performance Management System

To ensure the most effective delivery of all priority An online Performance Management System was developed infrastructure projects, in late 2001 the Infrastructure in 2001–02 as a tool to assist managers and staff with their Projects Division (IPD) was formed from two significant DOI performance management responsibilities. The system areas, the Infrastructure Development Group and the Rail facilitates better alignment between organisational Projects Group. The IPD has responsibility for the following directions and individual contribution. projects and activities: Training and Development Framework • Regional Fast Rail DOI’s Corporate Training and Development Strategy • Spencer Street Station redevelopment (CT&DS) is aimed at continuous improvement in the DOI • rail gauge standardisation key capability areas in order to achieve DOI’s mission, outcomes and objectives. • Wodonga rail bypass CT&DS addresses Information Technology (IT) skills training; • country rail passenger services e-Learning, distance education; and innovation and • development of the Scoresby Integrated Transport creativity programs, and emphasises practical application of Corridor learning to workplace issues. Training and development • continuing management of the State’s contract with activities provide the opportunity to establish a common Transurban City Link understanding between staff of organisational issues, the translation and understanding of ideas, thinking and • project feasibility and development activities experience across the organisation. The total attendance at • development of corporate project management training and development opportunities in 2001–02 is methodologies. 1759. Total number in 2000–01 was 1565.

People skills

Workforce Plan Training and Development

A DOI capability analysis and skills inventory undertaken during 2001–02 identified key areas in which DOI needed 2001–02 2000–01 to build its performance to achieve optimal outcomes. As a Total: 1759 Total: 1565 result, a comprehensive Workforce Plan has been developed for implementation in the business year 2002–03.

Department of Infrastructure Annual Report 2001–02 57 Organisational Capability Building

Developing skills in policy development Business systems and processes DOI has in place extensive programs to support the development of policy skills. A DOI policy development pilot Development of DOI Business program was conducted by Monash University in April Technology Plan

2002. The program is currently being refined and will be DOI has in place a sophisticated Business Technology Plan, offered to staff in 2002–03. which is updated every year to reflect current responsibilities and requirements. The 2001–02–03 Business Developing skills in financial management and Technology Plan was endorsed by DOI’s Management systems Committee in July 2001, and is being implemented as Throughout the year, DOI has continued to demonstrate planned. exemplary financial management through ongoing DOI has been vigorous in the continued development of development, implementation and education for DOI and its IT Platform with the introduction of QuickPlaces, agency staff in accounting and budgetary systems, SameTime, the move to Windows 2000 and the processes and procedures. It has particularly focused on development of a Disaster Recovery Plan and associated improving financial practices and this has supported the facilities. enhancement of project capacity across DOI. eGovernment Internal audit activity and reviews DOI has engaged in an extensive Government Online During the year, DOI undertook a variety of reviews and program over the past few years and, by December 2001, audits across a range of its contracting activities, to monitor was delivering all information, publications and many compliance with government policies and assess and services online via its Internet site: www.doi.vic.gov.au. manage risks. An audit of contracted services ensured the Key achievements include: identification and appropriate management of risks arising • Know Your Area – local area statistics from the inadvertent creation of employment relationships. • tenders, contracts and expressions of interest

• Victorian Heritage Register

• VicTrip – train and bus timetables

• Planning Certificates Online

• Planning Scheme Amendments Online

• Planning Schemes Online

• DOI grants and funding programs.

In March 2002, the Government launched its eGovernment vision. The scope of eGovernment is now effectively broader than Government Online, as it focuses on ‘Putting People at the Centre’ which includes:

58 Department of Infrastructure Annual Report 2001–02 Organisational Capability Building

• substantially improving support and services to citizens • DOI’s Extranet site was expanded considerably in and businesses – meeting people’s needs 2001–02, providing a wider range of information, TeamRooms and QuickPlaces for its audience of local • creating a framework for ongoing reform within government and selected DOI business partners. government – doing government better Records management • providing better community engagement and more effective democracy – enhancing democracy • DOI’s Ministerial Business Support System (MiBS) was implemented in 2000–01 and throughout 2001–02 • using innovation to find new opportunities – innovation was progressively extended to incorporate Parliamentary and experimentation. questions. Further extensions are planned for 2002–03

Information and knowledge management tools • The Victorian Electronic Records System (VERS) was

DOI’s ability to source and incorporate the most up-to-date implemented in the latter quarter of 2001–02, and is in information is of vital importance, and great efforts have the process of being rolled out across DOI. gone into the creation and maintenance of information and Business Plan Reporting knowledge management tools. • In 2001–02 DOI developed an online system for InfraWeb reporting on projects in the annual Business Plan.

• The InfraWeb is DOI's web presence, which operates This has the benefits of a consistent approach to across three environments: Intranet, Internet and business reporting across DOI, providing reminders to Extranet project managers to update project status, regular automatic reports generated for different management • InfraWeb vision: to provide information and services purposes, and the ability to collect the information anytime, anywhere to staff, business partners and the once and reuse it for other purposes. public, by linking people to people; people to services; and people to information. Contracts Management System and Contracting DOI

Key web-based achievements in 2001–02 include: DOI’s award-winning online guidance system, Contracting DOI, has been in place since 1999 and continues to be • latest design of the Intranet site released in May 2002, developed to reflect the progression in contracting practice with improvements in response to staff feedback, best and practical needs of the organisation. The system is now practice and Victorian Government guidelines available through the DOI Extranet for the use of external • DOI’s Internet current design and navigation released in parties such as DOI project managers who are obliged to October 2001; the latest redesign makes the site faster, follow DOI and Victorian Government policies and DOI more accessible and more responsive to customer protocols.

needs, with regularly updated news and project Contracting DOI is complemented by DOI’s Contract information directly from the home page Management System (CMS@ DOI) which came into operation on 1 July 2002.

Department of Infrastructure Annual Report 2001–02 59 Organisational Capability Building

Budget management system

During the year, DOI implemented a budget management system to facilitate the development and consolidation of DOI’s budgets. The system enables DOI to streamline the efficiency of its financial monitoring and budget development.

Online expenditure approvals system

DOI implemented a web-based system to approve purchases of goods and services online. This system substantially increases the efficiency of DOI’s purchasing, approval and payment processes.

60 Department of Infrastructure Annual Report 2001–02 Summary of financial results

The Department Of Infrastructure (DOI) comprises the (i) the former Melbourne City Link Authority (former following entities for which Ministers within the portfolio MCLA) on 1 March 2002, and established the Office of are responsible for tabling annual reports (including Director, Melbourne City Link to manage the functions audited financial statements): of the City Link arrangements, and

• Department (ii) the former Marine Board of Victoria on 7 February • Secretary to DOI (an independent body corporate 2002, and established the Office of Director of Marine created under the Project Development and Safety to perform the functions previously undertaken Construction Management Act 1994. The body by the Board. corporate activities include the functions of Major Also, on 5 March 2002, the functions of MPV were Projects Victoria (MPV) from 5 March 2002. The former transferred to the Secretary to DOI from the Secretary to Department of State and Regional Development was the former Department of State and Regional Development. responsible for the functions of MPV up until that All other agencies within the portfolio prepare their own date). financial reports (including financial statements) and report • Architects Registration Board separately. • Building Commission The audited operating surplus for the year was $55.279 • Docklands Authority million (2001 - $74.722 million). The operating surplus • Hastings Port (Holding) Corporation principally relates to funding received for committed • Heritage Council expenditures which were not expended at year end. • Melbourne Port Corporation A change to the Financial Management Act 1994 saw the • Plumbing Industry Commission establishment of a Contributed Capital account in Equity for the first time. As a result of this change, capital • Public Transport Corporation appropriations are now no longer allowed to be treated as • Roads Corporation (VicRoads) revenue (which previously had the effect of increasing the • Spencer Street Station Authority surplus), but are now required to be disclosed as • Urban and Regional Land Corporation contributed capital.

• Victorian Rail Track Corporation (VicTrack) Other impacts due to the introduction of contributed • Victorian Channels Authority capital, included the requirement to transfer part of the • Marine Board of Victoria (abolished 6 February 2002) accumulated surplus balance as at 1 July 2001 and all net • Melbourne City Link Authority (abolished 28 February asset transfers as a result of administrative changes to the 2002) contributed capital account in Equity. The changes have resulted in a contributed capital balance in the Statement The financial statements presented in this annual report of Financial Position of $513.096 million, made up mainly relate strictly to the operations of DOI, known as the of net assets transferred from the former MCLA totalling Department, and include the operations under the body $335.626 million. corporate ‘Secretary to the Department of Infrastructure’ and the operations under the Director of Public Transport, an office established by section 8 of the Transport Act 1983. During the year, as a result of administrative changes, DOI became successor in law to two former entities:

Department of Infrastructure Annual Report 2001–02 61 Summary of financial results

Financial results - controlled operations

2002 2001 2000 1999 1998 Note $m $m $m $m $m

Operating revenue - appropriations 1 2,406.1 2,316.6 2,182.1 2,118.0 513.4 - other revenue 2 181.1 135.6 147.1 42.1 328.4 Total operating revenue 2,587.2 2,452.2 2,329.2 2,160.1 841.8 Operating expenses 3 2,531.9 2,377.4 2,222.7 2,151.1 838.7 Operating surplus (deficit) 4 55.3 74.7 106.5 29.0 (6.5) Total assets 5 927.0 439.2 287.4 150.9 165.9 Total liabilities 6 161.1 139.4 91.8 61.7 98.5

Notes: Portfolio agencies 1. ‘Appropriations’ mainly reflect increased funding for rail, road and During the year, portfolio agencies collected some bus services. In 2002, in accordance with Government policy, capital appropriations were no longer reflected as revenues but are treated $891.9 million (2001 – $814.8 million) of revenue (mainly as ‘Contributed Capital’ in Equity. related to motor vehicle registration, stamp duty and driver 2. ‘Other Revenue’ increased by approximately $46 million which mainly licence fees) on behalf of the government, which was reflects the proceeds from the sale of National Rail Corporation shares. remitted directly to the Consolidated Fund. A further 3. ‘Expenses’ mainly relates to increased expenditure on rail, road and $1,004.3 million (2001 – $942.6 million) of transport bus services. accident charges were collected on behalf of the Transport 4. The operating surplus principally relates to funding received but not Accident Commission. These revenue collections do not yet expended at year end for committed projects. 5. ‘Total Assets’ increased significantly, mainly attributable to the transfer appear on the Statement of Financial Performance of DOI into DOI of the former MCLA, the former Marine Board of Victoria or its agencies, but are included in the accounts of the and MPV totalling $367.059 million. other government entities for which the funds were 6. ‘Total Liabilities’ increased mainly due to the impact of the transfer into DOI of the former MCLA, the former Marine Board of Victoria collected. and MPV totalling $7.371 million and an increase in the level of creditors, accruals and provision for employee entitlements. The net assets of all agencies within the portfolio totalled $21.536 billion (2001 – $19.703 billion), the major agencies being the Roads Corporation $15.471 billion (2001 – $14.441 billion), and VicTrack $3.934 billion (2001 – $3.580 billion). During the year, the Docklands Authority was transferred into the Infrastructure portfolio from the former Department of State and Regional Development.

62 Department of Infrastructure Annual Report 2001–02 Financial Statements

Department of Infrastructure Annual Report 2001–02 63 64 Department of Infrastructure Annual Report 2001–02 Department of Infrastructure Annual Report 2001–02 65 Statement of financial performance for the year ended 30 June 2002

Revenue from ordinary activities Notes 2002 2001 $’000 $’000

Output appropriations 5,6 2,406,086 2,180,616 Appropriations – additions to net asset base 1(v), 5, 6 - 135,855 Revenue from other parties 5 181,102 135,643

Total revenue 2,587,188 2,452,114

Expenses from ordinary activities Rail services 7 949,113 886,022 Road services 909,922 808,962 Bus services 406,299 388,917 Other services and supplies 8 112,662 108,330 Grants paid for community and social benefits 9 51,669 54,095 Employee entitlements 12 58,230 49,512 Assets transferred to other agencies 10 11,669 37,626 Capital asset charge 11 21,914 21,082 Depreciation and amortisation expense 12 9,379 6,629 Resources provided free of charge 594 5,083 Revaluation write down of assets - 4,422 Other expenses from ordinary activities 458 6,712 Total expenditure 2,531,909 2,377,392

Net result for the reporting period 55,279 74,722 Net increase in asset revaluation reserve 20(c) 29,703 29,491

Total revaluation adjustments recognised directly in equity 29,703 29,491

Total changes in equity other than those resulting from transactions with Victorian Government in its capacity as owner 20(e) 84,982 104,213

The above statement of financial performance should be read in conjunction with the accompanying notes.

66 Department of Infrastructure Annual Report 2001–02 Statement of financial position as at 30 June 2002

Notes 2002 2001 $’000 $’000

Current assets

Cash assets 13 261,968 185,190 Receivables 14 138,387 116,319 Prepayments 1,230 972 Inventories 15 3,521 - Total current assets 405,106 302,481

Non-current assets Receivables 14 14,261 5,320 Inventories 15 5,352 - Infrastructure, property, plant and equipment 16 489,856 121,495 Intangible assets 17 10,389 7,952 Loans 2,000 2,000 Total non-current assets 521,858 136,767

Total assets 926,964 439,248

Current liabilities Payables 18 142,616 123,803 Provisions for employee entitlements 19 6,761 5,534 Total current liabilities 149,377 129,337

Non-current liabilities Provisions for employee entitlements 19 11,734 10,102 Total non-current liabilities 11,734 10,102

Total liabilities 161,111 139,439

Net assets 765,853 299,809

Equity Contributed capital 1(v), 20(a) 513,096 - Accumulated surplus 20(b) 192,181 268,936 Asset revaluation reserve 20(c) 60,576 30,873 Total equity 765,853 299,809

The above statement of financial position should be read in conjunction with the accompanying notes.

Department of Infrastructure Annual Report 2001–02 67 Statement of cash flows for the year ended 30 June 2002

2002 2001 Cash flows from operating activities Notes $’000 $’000

Receipts from Victorian Government 2,387,068 2,279,917 Receipts from other entities 76,927 74,410 Payments to suppliers and employees (inclusive of GST) (2,586,047) (2,363,676) Interest received 2,237 1,980 Other revenue (inclusive of GST) 195,780 150,602 Capital asset charge (21,914) (21,082) Payments to government - (6,314) Net cash inflow from operating activities 30 54,051 115,837

Cash flows from investing activities Payments for property, plant and equipment (16,745) (23,082) Payments for land held for resale (1,727) - Payments for software (4,127) - Retention of security bond 5,150 - Advances received from clients/sponsor agencies 47,262 - Disbursements to contractors/agencies (43,803) - Net cash (outflow) from investing activities (13,990) (23,082)

Cash flows from financing activities Proceeds of capital contribution from Victorian Government 190,022 - Payments to acquire assets on behalf of VicTrack (52,876) - Other capital contributions to agencies within the Infrastructure portfolio (109,766) - Net cash (outflow) from financing activities 27,380 -

Net increase (decrease) in cash held 67,441 92,755 Cash at the beginning of the financial year 185,190 96,365 Transfer to the Secretary to the Department of State and Regional Development - (3,930) Transfer to the Department (refer note 4) 9,337 - Cash at the end of the financial year 13 261,968 185,190

The above statement of cash flows should be read in conjunction with the accompanying notes.

68 Department of Infrastructure Annual Report 2001–02 Notes to the financial statements for the year ended 30 June 2002

Note 1. Summary of significant accounting infrastructure assets to be provided by the operators policies over the period of the leases.

This general-purpose financial report has been prepared in The country and metropolitan network infrastructure accordance with the Financial Management Act 1994, existing at the time the franchise agreements were Australian Accounting Standards, Statements of Accounting entered into in August 1999, were leased by the Concepts and other authoritative pronouncements of the Victorian Rail Track Corporation (VicTrack) under a lease Australian Accounting Standards Board, and Urgent Issues to the Director who has subleased the infrastructure to Group Consensus Views. the operators for the duration of each franchise.

It is prepared in accordance with the historical cost In accordance with the contractual provisions and convention on an accrual basis of accounting, except for government policy, works undertaken by the private certain assets and liabilities which, as noted, are at operators to enhance, modify or add to the valuation. The accounting policies adopted, and the infrastructure, vests with the Director. The Department classification and presentation of items, are consistent with of Treasury and Finance has advised that whilst the those of the previous year, except where a change is Director still maintains ownership, all rail leasehold required to comply with an Australian Accounting Standard improvement infrastructure assets created as a result of or Urgent Issues Group Consensus View. capital grants and other subsidies paid to all franchisees are controlled and reported by VicTrack. (a) Reporting entity The financial statements include all the controlled activities (ii) Office of Director of Marine Safety of the Department of Infrastructure. The Marine (Further Amendment) Act 2001 abolished the Marine Board of Victoria as a statutory authority on The reporting entity includes: 6 February 2002 and established the Office of Director (i) Director of Public Transport of Marine Safety to perform the functions previously performed by the Board. The Director of Public Transport (‘the Director’) is an office established by section 8 of the Transport Act The Office of Director of Marine Safety has become a (‘the Act’). The Director’s powers and functions are set branch within the Ports and Marine Division in the out in section 9 of the Act and include responsibility for Department of Infrastructure from 7 February 2002. the general administration of the tram and train service At that date, all assets and liabilities vest in the Director contracts provided by private operators under franchise on behalf of the Crown are incorporated in the financial arrangements. The Director is part of the Department of statements of the Department. Infrastructure. Details of assets and liabilities transferred are shown in The Director, on behalf of the Crown, has entered into note 4. a number of agreements with private operators for periods ranging from 10 to 15 years whereby the (iii) Office of Director, Melbourne City Link operation of Victoria’s tram and train services The Melbourne City Link Authority (MCLA) was wound transferred from the State-owned rail corporations to up under sections 38 and 39 of the Melbourne City those operators in August 1999. These arrangements Link (Miscellaneous Amendments) Act 2000 on 28 are referred to as the franchising arrangements. February 2002. As of 1 March 2002, responsibility for The Department has contracted to pay a number of all MCLA’s rights, obligations, assets and liabilities subsidies for public transport services and rail transferred to the Office of Director, Melbourne City Link.

Department of Infrastructure Annual Report 2001–02 69 Notes to the financial statements for the year ended 30 June 2002

Sections 6A and 6B of the Melbourne City Link Act administered resources, but does not have the discretion to 1995 established the statutory position of Office of deploy these resources for achievement of the Director, Melbourne City Link within the Department Department’s objectives. For these resources, the and conferred on the Director statutory functions to Department acts only on behalf of the Victorian manage the City Link arrangements on behalf of the Government. The accrual basis of accounting has been used State. in accounting for administered resources.

Details of assets and liabilities transferred are shown in Transactions and balances relating to these administered note 4. resources are not recognised as departmental revenues, expenses, assets or liabilities, but are disclosed in the (iv) Secretary to the Department of Infrastructure. applicable output schedules (also refer note 28). In accordance with approval received under the Financial Management Act 1994, the Department of Other administered activities on behalf of parties Infrastructure’s (the Department’s) Annual Report and external to the Victorian Government Financial Statements incorporate the ‘Secretary to the The Department has responsibility for transactions and Department of Infrastructure’ as a body corporate balances relating to administered funds on behalf of third created under the Project Development and parties external to the Victorian Government. Revenues, Construction Management Act 1994. The body expenses, assets and liabilities administered on behalf of corporate activities include the functions performed by third parties are not recognised in these financial Major Projects Victoria from 5 March 2002, following statements as they are administered on a fiduciary and its transfer from the Secretary to the former custodial basis, and therefore not controlled by the Department of State and Regional Development. Department. All activities are reflected as controlled transactions except project development and construction Non-current assets management activities for sponsor agencies, and where All non-current assets controlled by the Department sales and subsequent proceeds are received in which (including Crown land) are reported in the statement of case they are reflected as administered transactions. financial position. Non-current assets which the (Refer note 3 and 4(c)). Department administers on behalf of the Victorian Government are reported as administered resources. Details of assets and liabilities transferred are shown in note 4. (b) Objectives and funding (v) Station Pier – Committee of Management The Department’s objectives for the 2001–02 year have been: On 17 May 2001, a Committee of Management which is controlled by the Department was formed for the • Improve transport safety and reduce the incidence, management of the Station Pier area. The Committee’s severity and cost of accidents and incidents; functions include improving, maintaining control, and • Improve intercity, country and global connections and granting leases over the Station Pier land and buildings. access to transport services; • Enhance the capability of local government to manage Administered resources the quality, efficiency and effectiveness of infrastructure; The Department administers but does not control certain • Increase the competitiveness and integration of resources on behalf of the Victorian Government. Victoria’s logistics industry and transport systems; It is accountable for the transactions involving those

70 Department of Infrastructure Annual Report 2001–02 Notes to the financial statements for the year ended 30 June 2002

• Enhance transport access and mobility for people to (e) Revenue recognition services, jobs and opportunities; All revenue received by the Department is generally • Increase the public transport share of the travel market; required to be paid into the consolidated fund. • Increase the sustainability of the transport system; Revenue becomes controlled by the Department when it is • Maintain existing transport networks to ‘fit for purpose’ appropriated from the consolidated fund by the Victorian standards; Parliament and applied to the purposes defined under the • Enhance the livability and sustainability of Victoria’s relevant appropriations act. Additionally, the Department is urban, regional and rural communities; permitted under section 29 of the Financial Management • Deliver an efficient and effective planning system that Act 1994 to have certain receipts annotated to the annual facilitates development; appropriation. The receipts which form part of a section 29 • Enhance local government’s capacity to meet the needs agreement are received by the Department and paid into of their communities through continuous improvement the consolidated fund as administered revenue (note 28). in governance and service delivery; and At that point, section 29 provides for an equivalent amount • Deliver best practice infrastructure, in partnership with to be added to the annual appropriation. Examples of the private sector where appropriate. receipts which can form part of a section 29 agreement are Commonwealth specific purpose grants, Municipal Council The Department is predominantly funded by accrual-based special purpose grants and the proceeds from the sale parliamentary appropriations for the provision of outputs. of assets.

(c) Outputs of the Department Amounts disclosed as revenue are, where applicable, net of Information about the Department’s output groups, and returns, allowances and duties and taxes. Revenue is the expenses, revenues, assets and liabilities which are recognised for each of the Department’s major activities as reliably attributable to those output groups, is set out in follows: the Output Groups Schedule (refer note 2). Information (i) Output revenue about expenses, revenues, assets and liabilities administered by the Department are given in the schedule of Revenue from the outputs the Department provides to administered expenses and revenues and the schedule of Government is recognised when those outputs have administered assets and liabilities (refer note 28). been delivered and the relevant Minister has certified delivery of those outputs in accordance with specified (d) Acquisitions of assets performance criteria. The cost method of accounting is used for all acquisitions (ii) Public Transport Fund of assets. Cost is measured as the fair value of the assets given up or liabilities undertaken at the date of acquisition All revenue received by the Director of Public Transport plus incidental costs directly attributable to the acquisition. is retained in the Public Transport Fund pursuant to Assets with a cost in excess of $1,000 are capitalised (2001 section 11 of the Transport Act. Transport related - $1,000). revenue, including bus and rail revenue, is recognised in the period to which it is received by the Department Assets acquired at no cost, or for nominal consideration, (refer note 5). Where service obligations overlap are initially recognised at their fair value at the date of financial periods, revenue is deferred and recognised on acquisition. a basis representative of the delivery of the service obligation.

Department of Infrastructure Annual Report 2001–02 71 Notes to the financial statements for the year ended 30 June 2002

(iii) Commonwealth grants Administered receivables are disclosed in note 28 and Grants payable by the Commonwealth Government are include the Concession Fee notes totalling $129.021 million recognised as administered revenue when the at 30 June 2002 which were transferred from the former Department gains control of the underlying assets Melbourne City Link Authority (also refer note 4(b)). (refer note 28). Where grants are reciprocal, revenue is (g) Inventories recognised as performance occurs under the grant. Non-reciprocal grants are recognised as revenue when Land for resale, stores, work in progress and finished goods the grant is received or receivable. Conditional grants are stated at the lower of cost and net realisable value. may be reciprocal or non-reciprocal depending on the Cost includes expenditure incurred in acquiring the terms of the grant. inventories and bringing them to their existing condition. Net realisable value is determined on the basis of the (iv) Fines and fees Department’s normal selling return. Expenses associated As the Department does not gain control over assets with marketing, selling and distribution are deducted to arising from fines and fees no revenue is recognised. determine net realisable value. The Department collects these amounts on behalf of the Crown. Accordingly, the amounts are disclosed as (h) Revaluations of non-current assets revenues in the schedule of administered revenues and Subsequent to the initial recognition as assets, non-current expenses (refer note 28). physical assets other than plant and equipment are measured at fair value. Plant and equipment are measured (v) Revenue from other Departments at cost. Revaluations are made with sufficient regularity to Revenue from other Departments is recognised when it ensure that the carrying amount of each asset does not is received. differ materially from its fair value at the reporting date. Revaluations are assessed annually and supplemented by All other amounts of revenue over which the independent assessments, at least every three years. Department does not gain control are disclosed as Revaluations are conducted in accordance with the administered revenue in the schedule of administered Department of Treasury and Finance’s Policy Paper revenues and expenses. This includes revenue totalling Revaluation of Non-Current Physical Assets. $12.016 million representing the change in the present value of Concession Fee Notes during the reporting Revaluation increments are credited directly to the asset period and also Concession fees received as assets free revaluation reserve, except that, to the extent that an of charge totalling $117.005 million from the former increment reverses a revaluation decrement in respect of MCLA on 1 March 2002 (also refer notes 4(b) and 28). that class of asset previously recognised as an expense in net result, the increment is recognised immediately as (f) Receivables revenue in net result.

All debtors are recognised at the amounts receivable as Revaluation decrements are recognised immediately as they are due for settlement at no more than expenses in the net result, except that, to the extent that a 30 days from the date of recognition. credit balance exists in the asset revaluation reserve in respect of the same class of assets, they are debited directly Collectability of debtors is reviewed on an ongoing basis. to the asset revaluation reserve. Debts which are known to be uncollectable are written off. A provision for doubtful debts is raised when some doubt Revaluation increments and decrements are offset against as to collection exists. one another within a class of non-current assets.

72 Department of Infrastructure Annual Report 2001–02 Notes to the financial statements for the year ended 30 June 2002

Change in revaluation policy Assets transferred from the former Melbourne City In previous reporting periods up to 30 June 2001, land and Link Authority (MCLA) to the Department (in note 4 buildings and plant and equipment were measured at and note 16). either cost or using the deprival value basis. Deprival was The land transferred from the former MCLA will be deemed to approximate fair value, being the amounts the identified as under lease or surplus to requirements. Surplus Department would have to forego, if it was deprived of land will be transferred to other Government agencies and those assets. sold or transferred to local councils or sold to the general public where appropriate. For the reporting period ending on 30 June 2002, the Department elected to adopt the fair value basis for The Minister for Finance has provided an exemption under measuring certain land and revert to the cost basis for section 47 of the Financial Management Act 1994 from the measuring all plant and equipment. The basis of valuation of need to apply the Department of Treasury and Finance’s all other land and buildings and infrastructure assets remain Revaluation of Non-Current Physical Assets Policy as at 30 valued on the deprival value basis (also refer note 16). June 2002 for the land and infrastructure non-current assets transferred to the Department from MCLA. MCLA Certain classes of property including land, buildings, assets were mainly acquired and valued as at 30 June 1997 heritage assets, and infrastructure assets currently reported and under the policy, were to be revalued by 30 June 2002. at deprival value will be subject to progressive revaluations Due to the complex nature of the winding up of the MCLA, to fair value over the period commencing 1 July 2002 with the exemption allows these assets to be revalued a completion date of 30 June 2005. (Refer treatment below subsequent to the year ending 30 June 2002. Therefore, for assets transferred from the former Melbourne City Link land and infrastructure assets will be subject to the Authority). transitional provisions of the revaluation policy. In changing from a deprival basis to the cost basis the carrying amount for plant and equipment at 30 June 2002 was deemed to equal the cost of the assets.

Accordingly, the change in accounting policy for certain land valued at fair value and plant and equipment valued at cost has had no impact on the current year statement of financial performance.

The change in measurement basis is to comply with the accounting requirements of AASB 1041 and the Department of Treasury and Finance Policy Paper, Revaluation of Non-Current Physical Assets.

Department of Infrastructure Annual Report 2001–02 73 Notes to the financial statements for the year ended 30 June 2002

(i) Depreciation of property, plant and (j) Leasehold improvements equipment The cost of improvements to or on leasehold properties is Depreciation is calculated on a straight-line basis to write amortised over the unexpired period of the lease or the off the net cost or revalued amount of each item of estimated useful life of the improvement to the property, plant and equipment (excluding land) over its Department, whichever is the shorter. Leasehold expected useful life to the Department. Estimates of improvements of office assets are being amortised over remaining useful lives are made on a regular basis for all 10 years. assets, with annual reassessments for material items. The expected useful lives are as follows: (k) Leased non-current assets A distinction is made between finance leases which effectively transfer from the lessor to the lessee substantially Asset category Expected useful all the risks and benefits incident to ownership of leased life (years) non-current assets, and operating leases under which the Buildings 55 lessor effectively retains substantially all such risks and Plant and equipment benefits. Furniture and fittings 3 to 15 The Department has not entered into any finance lease Computer equipment 3 arrangements. Computer printers 4 Office machines 5 Operating lease payments are charged to the statement of Infrastructure assets financial performance in the periods in which they are Station Pier 30 to 50 incurred, as this represents the pattern of benefits derived Road works 55 to 60 from the leased assets. Bridges, structures and tunnels 90 to 115 Sound Barriers 55 (l) Non-current assets constructed by the Mechanical and electrical equipment 20 Department Landscape and urban design 20 The cost of non-current assets constructed by the Department includes the cost of all materials used in The depreciation rates used in the 2002 year are the same construction, direct labour on the project and an as the prior year, except for Roads and Road Works; appropriate proportion of variable and fixed overhead. Bridges, Structures and Tunnels; Sound Barriers; Mechanical and Electrical equipment; and Landscape and Urban Design (m) Trade and other creditors (payables) which were transferred from the former Melbourne City These amounts represent liabilities for goods and services Link Authority (refer note 4(b)). provided to the Department prior to the end of the Where items of infrastructure, plant and equipment have financial year and which are unpaid. The amounts are separately identifiable components which are subject to unsecured and are usually paid within 30 days of regular replacement, those components are assigned useful recognition. lives distinct from the item of infrastructure assets and (n) Concession Fees Transfer (Payable) and plant and equipment to which they relate. expense The Administered note 28 discloses a Concession Fee Notes receivable from Transurban ($129.021 million), the concession fee revenue for the period ($12.016 million) and

74 Department of Infrastructure Annual Report 2001–02 Notes to the financial statements for the year ended 30 June 2002

concession fees received as assets free of charge ($117.005 respect of employees' services up to that date. million). These amounts are shown in the Administered The amount anticipated to be paid during the next note to reflect the fact that the Department manages the 12 months is shown as a current liability. Concession Fee Notes on behalf of the State. As such no disclosure is made in note 28 regarding the corresponding (ii) Long-service leave concession fee payable and concession fee expense. A liability for long-service leave which includes current pay rates and on-costs is measured as the present value (o) Maintenance and repairs of expected future payments to be made in respect of The costs of maintenance of infrastructure, property, plant services provided by employees up to the reporting and equipment are charged as expenses as incurred, except date. Consideration is given to expected future wage where they extend the original useful life to the and salary levels, experience of employee departures Department of the relevant asset, and where they relate to and periods of service. Expected future payments are the replacement of a component of an asset, in which case discounted using interest rates on national Government the costs are capitalised and depreciated in accordance guaranteed securities with terms to maturity that with note 1(i). Other routine operating maintenance, repair match, as closely as possible, the estimated future cash costs and minor renewals are also charged as expenses as outflows. The amount anticipated to be paid during the incurred. next 12 months is shown as a current liability.

(p) Goods and services tax systems changes (iii) Superannuation Revenues, expenses and assets are recognised net of GST The amount charged to the statement of financial except where the amount of GST incurred is not performance in respect of superannuation represents recoverable, in which case it is recognised as part of the the contributions made by the Department to the cost of acquisition of an asset or part of an item of superannuation funds (also refer note 27). expense. The net amount of GST recoverable from, or payable to, the Australian Taxation Office (ATO) is included (r) Intangible assets and expenditure carried as part of receivables or payables in the statement of forward financial position. The GST component of a receipt or (i) Software payment is recognised on a gross basis in the statement of Significant costs associated with the acquisition or cash flows in accordance with Accounting Standard AAS 28 development of computer software are capitalised Statement of Cash Flows. where the cost exceeds $50,000 (2001 - $50,000) and Costs incurred to update existing systems or to design, are amortised on a straight line basis over the periods develop and implement new systems to deal with the of the expected benefit, which varies from three to five goods and services tax are charged as expenses as incurred, years. except where they result in an enhancement of future economic benefits and are recognised as an asset. (ii) Website costs Costs in relation to websites controlled by the (q) Employee entitlements Department are charged as expenses in the period in (i) Wages, salaries and annual leave which they are incurred unless they relate to the acquisition of an asset, in which case they are Liabilities for wages, salaries and annual leave are capitalised and amortised over their period of expected recognised, and are measured as the amount unpaid at benefit. Generally, costs in relation to feasibility studies the reporting date at current pay rates and on-costs in

Department of Infrastructure Annual Report 2001–02 75 Notes to the financial statements for the year ended 30 June 2002

during the planning phase of a website, and ongoing In previous reporting periods, up to 30 June 2001, the costs of maintenance during the operating phase are following items were usually recognised as revenues and considered to be expenses. Costs incurred in building or expenses in the statement of financial performance: enhancing a website, to the extent that they represent • Assets received free of charge from other public sector probable future economic benefits controlled by the entities, and Department that can be reliably measured, are • Grants paid from appropriation for additions to net capitalised as an asset and amortised over the period assets to other public sector entities for capital of the expected benefits which vary from three to purposes. five years. For the reporting period ending 30 June 2002, such (s) Cash transactions between wholly-owned public sector entities are now recognised in the statement of financial position as For purposes of the statement of cash flows, cash includes adjustments to contributed capital, where in substance, short-term deposits that are readily convertible to cash on they satisfy the definition of a contribution by owner hand and are subject to an insignificant risk of changes in (refer note 20(a)). value, net of outstanding cheques yet to be presented by the Department’s suppliers and creditors (see note 13). Consequently, in the 2002 year, revenue from ordinary activities has been reduced in the Statement of Financial (t) Capital asset charge Performance by $362.3 million for assets received free The capital asset charge is imposed by the Department of of charge from other public sector entities and by Treasury and Finance and represents the opportunity cost of $192.4 million for appropriations for additions to net capital invested in the non-current physical assets used in assets. Further, expenses from ordinary activities have been the provision of outputs. The charge is calculated on the reduced by $108.5 million for road services, $62.1 million carrying amount of non-current physical assets (excluding for rail services, $1.2 million for marine services and heritage assets). $2.0 million for other services in accordance with Australian Accounting Standard AASB 1034 Financial Report (u) Resources provided and received free of charge Presentation and Disclosures. The comparatives have not Contributions of resources and resources provided free of been reclassified to accord. charge are recognised at their fair value. Contributions in This change in accounting policy for transfers of assets and the form of services are only recognised when a fair value liabilities is in compliance with the accounting requirements can be reliably determined and the services would have of Urgent Issues Group Abstract 38 and the Accounting been purchased if not donated. and Financial Reporting Bulletin No. 39 Accounting for Contributed Capital. (v) Contributed capital – change in accounting policy For the reporting period ending 30 June 2002, the Consistent with UIG Abstract 38 Contributions by Owners Department has deemed an amount of $132.306 million made to Wholly-Owned Public Sector Entities and from its 1 July 2001 opening Accumulated Surplus balance Accounting and Financial reporting Bulletin 39 Accounting to be taken up as the opening balance for contributed for Contributed Capital, appropriations for additions to net capital (refer note 20). This accounting treatment is to assets have been designated as contributed capital. comply with Urgent Issues Group Abstract 38 Contributions Other transfers that are in the nature of contributions or by Owners Made to Wholly-Owned Public Sector Entities, distributions have also been designated as contributed and Accounting and Financial Reporting Bulletin No 39, capital. Accounting for Contributed Capital and No 40A,

76 Department of Infrastructure Annual Report 2001–02 Notes to the financial statements for the year ended 30 June 2002

Establishment of Opening Balances for Contributed Capital. (x) Rounding of amounts Funds representing amounts held in trust or held in the Amounts in the financial report have been rounded to the public account as cash or investments or surpluses to which nearest thousand dollars, or in other cases, to the nearest Section 33 of the Financial Management Act 1994 applies, dollar. which are included in the total opening Accumulated Surplus as at 1 July 2001, are not deemed as forming part (y) Comparatives of the opening balance for Contributed Capital in Where practicable, comparative amounts are presented and accordance with the Accounting and Financial Reporting classified on a basis consistent with the current year. Bulletin No. 40, Establishment of Opening Balances and Formal Designation for Contributed Capital. The reclassifications to the 2001 figures are as follows:

The change in accounting policy has resulted in the Statement of Financial Performance – recognition, in the statement of financial position, as at expenses from ordinary activities 1 July 2001 of an opening balance of $132.306 million as 2001 2001 contributed capital (1 July 2000 - $Nil) and an amount for previous adjusted $’000 $’000 the accumulated surplus of $136.902 million (1 July 2000 – $189.974 million). (i) Supplies and services Rail services 882,349 886,022 Further, the change in accounting policy relating to the Multipurpose taxi program 37,760 39,206 treatment of amounts in the Asset Revaluation Reserve as Other services and supplies 68,996 - at 30 June 2001 relating to Plant and Equipment which is Administration and information technology - 24,510 now deemed ‘at cost’ (refer note 1(h)), requires such Legal, insurance and internal audit - 5,263 amounts to be taken up in the opening balance of Occupancy - 6,598 Accumulated Surplus as at 1 July 2001 and then transferred Other - 27,506 to Contributed Capital. The amount of the transfer 989,105 989,105 amounted to $272,406 which is included as part of the total amount of $132.306 million transferred to (ii) Payables (note 18) Contributed Capital (refer note 20 (a) and (b)). Trade Creditors and Accruals 123,803 112,553 Unearned/Prepaid Income - 11,250 (w) Commitments for rail and bus services – 123,803 123,803 change in accounting policy (iii) Administered (note 28) The methodology used to calculate commitments changed Creditors and accruals 4,568 3,763 from a discounted approach used in the 2001 to a Amounts owing to other departments 87,252 88,057 non-discounted approach used as at 30 June 2002. 91,820 91,820 This approach is allowable under the Australian Accounting Standards AASB 1008.

The impact of the change in accounting policy from discounted to non-discounted (exclusive of GST) in the 2002 year amounted to an increase of $898.5 million for rail commitments and an increase of $347.7 million for bus commitments (also refer note 26).

Department of Infrastructure Annual Report 2001–02 77 Notes to the financial statements for the year ended 30 June 2002

Note 2. Output groups of the Department Balanced Planning and Environmental System

A description of each output group undertaken by the Description of the Output Group: Department during the year ended 30 June 2002 and the Provision of a world class planning system that supports Department objectives to which the Output Group development across the State in accordance with triple contributions are summarised as follows: bottom line principles, and which is fair, transparent, Strategic Land Use and Infrastructure Planning accountable, cost effective and provides certainty to users. Partnerships between community, local government and Description of the Output Group: business will also characterise the system. Facilitation of Planned delivery of land use and infrastructure strategies residential, commercial and industrial developments, and aimed to improve the economic and social capacity of the provision of urban design, heritage, environmental Victoria. Key elements include integrated transport planning assessment services and programs. linked to regional land use development, integrated metropolitan land use and transport planning, strategies for Departmental objectives to which the Output Group metropolitan and rural sub-regions and development of a contributes: forward infrastructure investment strategy. The output • Enhancing the livability and sustainability of Victoria’s group also includes support and advice to the Infrastructure urban, rural and regional communities; Planning Council. • Delivering efficient and effective planning and heritage systems that facilitate development; and Departmental objectives to which the Output Group • Enhancing local government’s capacity to meet the contributes: needs of their communities through continuous • Improve transport safety and reduce the incidence, improvement in governance and service delivery. severity and cost of accidents and incidents; Supporting Local Government • Improve inter city, country and global connections and access to transport services; Description of the Output Group: • Increase the competitiveness and integration of Ensure that there is an effective and accountable system of Victoria’s logistics industry and transport system; local government, which is based on good governance, • Enhance transport access and mobility for people to quality services, effective infrastructure, management and services, jobs and opportunities; community accountability. Delivery of outputs, requires • Increase public transport share of travel market; constructive intra-government relations and co-ordination • Increase the sustainability of the transport system; to deliver on common outcomes. • Maintain existing transport networks to ‘fit for purpose’ standards; • Enhance the livability and sustainability of Victoria’s urban, rural and regional communities; and • Deliver ‘best practice’ infrastructure, in partnership with the private sector where appropriate.

78 Department of Infrastructure Annual Report 2001–02 Notes to the financial statements for the year ended 30 June 2002

Departmental objectives to which the Output Group Regional and Rural Transport Services contributes: Description of the Output Group: • Enhance the capability of local government to manage the quality, efficiency and effectiveness of infrastructure; Delivery of quality public transport services to regional and rural areas of Victoria through contractual arrangements • Enhance the livability and sustainability of Victoria’s with private operators. These services include intrastate and urban, rural and regional communities; interstate rail services, route and school bus services. • Deliver an efficient and effective planning system that Contracts with private operators are managed to ensure facilitates development; that service provision is in accordance with contractually • Enhance local government’s capacity to meet the needs agreed standards and that committed investment levels for of their communities through continuous improvements rolling stock and new buses are delivered. in governance and service delivery; and • Deliver ‘best practice’ infrastructure, in partnership with Departmental objectives to which the Output Group the private sector where appropriate. contributes: • Improve transport safety and reduce the incidence, Ports and Intermodal Gateways severity and cost of accidents and incidents; Description of the Output Group: • Improve inter city, country and global connections and Initiatives to improve the efficiency of the transport system access to transport services; by addressing the interfaces of different components of this • Enhance transport access and mobility for people to multi-facetted system. It covers the connections between services, jobs and opportunities; ports, rail and road transport and airports in metropolitan, • Increase public transport share of travel market; regional and rural Victoria. • Increase the sustainability of the transport system;

Departmental objectives to which the Output Group • Maintain existing transport networks to ‘fit for purpose’ standards; contributes: • Enhance the livability and sustainability of Victoria’s • Increase the competitiveness and integration of urban, rural and regional communities; and Victoria’s logistics industry and transport systems; • Deliver ‘best practice’ infrastructure, in partnership with • Increase the sustainability of the transport system; the private sector where appropriate. • Maintain existing transport networks to ‘fit for purpose’ standards; Regional and Rural Transport Infrastructure • Enhance the livability and sustainability of Victoria’s Description of the Output Group: urban, rural and regional communities; and Development and maintenance of regional and rural • Deliver ‘best practice’ infrastructure, in partnership with transport networks by implementing major road projects, the private sector where appropriate. regional and rural rail projects and monitoring the quality of rail infrastructure as defined in the contracts with private operators. These facilitate the movement of goods and passengers in an efficient and timely manner.

Department of Infrastructure Annual Report 2001–02 79 Notes to the financial statements for the year ended 30 June 2002

Departmental objectives to which the Output Group Metropolitan Transport Services contributes: Description of the Output Group: • Improve transport safety and reduce the incidence, severity and cost of accidents and incidents; Delivery of a quality public transport service to the metropolitan area through contractual arrangements with • Improve inter city, country and global connections and private operators. These services include rail, tram and access to transport services; routed buses. Contracts with private operators are • Increasing the competitiveness and integration of managed to ensure that service provision is in accordance Victoria’s logistics industry and transport systems; with contractually agreed standards and that the • Enhance transport access and mobility for people to committed investment levels for rolling stock and new services, jobs and opportunities; buses is delivered. • Increase the sustainability of the transport system; • Maintain existing transport networks to ‘fit for purpose’ Departmental objectives to which the Output Group standards; contributes: • Enhance the livability and sustainability of Victoria’s • Improve transport safety and reduce the incidence, urban, rural and regional communities; and severity and cost of accidents and incidents; • Deliver ‘best practice’ infrastructure, in partnership with • Enhance transport access and mobility for people to the private sector where appropriate. services, jobs and opportunities; • Increase public transport share of travel market; • Increase the sustainability of the transport system; • Maintain existing transport networks to ‘fit for purpose’ standards; • Enhance the livability and sustainability of Victoria’s urban, rural and regional communities; and • Deliver ‘best practice’ infrastructure, in partnership with the private sector where appropriate.

80 Department of Infrastructure Annual Report 2001–02 Notes to the financial statements for the year ended 30 June 2002

Metropolitan Transport Infrastructure Transport Safety and Accessibility

Description of the Output Group: Description of the Output Group: Development and maintenance of metropolitan road Safety initiatives for road, public transport and waterway networks and implementation of major civic and road users. This is provided through the application of projects and development of metropolitan rail and tram performance based standards to regulate transport infrastructure as set out in the contracts with the private providers, and to reduce cost of regulations on business, operators. These outputs provide major parts of the while raising safety and access levels for the community transport network in the metropolitan area and are aimed through improved transport regulation reform, education at facilitating the movement of goods and passengers in an and prevention programs. It includes services to improve efficient, timely and safe manner to their destinations. accessibility and subsidised taxi travel for the disabled.

Departmental objectives to which the Output Group Departmental objectives to which the Output Group contributes: contributes: • Improve transport safety and reduce the incidence, • Improve transport safety and reduce the incidence, severity and cost of accidents and incidents; severity and cost of accidents and incidents; • Increasing the competitiveness and integration of • Enhance transport access and mobility for people to Victoria’s logistics industry and transport systems; services, jobs and opportunities; • Enhance transport access and mobility for people to • Maintain existing transport networks to ‘fit for purpose’ services, jobs and opportunities; standards; and • Increase the sustainability of the transport system; • Deliver ‘best practice’ infrastructure, in partnership with • Maintain existing transport networks to ‘fit for purpose’ the private sector where appropriate. standards; • Enhance the livability and sustainability of Victoria’s urban, rural and regional communities; and • Deliver ‘best practice’ infrastructure, in partnership with the private sector where appropriate.

Department of Infrastructure Annual Report 2001–02 81 Notes to the financial statements for the year ended 30 June 2002

Note 2. Output groups of the Department (continued)

Output groups schedule – controlled revenue and expenses for the year ended 30 June 2002

Strategic Balanced Supporting Ports and Land Use and Planning and Local Intermodal Infrastructure Environmental Government Gateways Planning Systems

$’000 $’000 $’000 $’000

2002 2001 2002 2001 2002 2001 2002 2001

Revenue from ordinary activities Output appropriations 8,618 7,241 51,565 52,457 41,445 39,627 15,096 18,117 Appropriations – additions to net asset base - 3,711 - 11,062 - 1,878 - 9,824 Revenue from other parties - - 54 - - - - - Total revenue 8,618 10,952 51,619 63,519 41,445 41,505 15,096 27,941

Expenses from ordinary activities Rail services ------1,372 72 Road services - - 2,527 3,169 5,785 7,130 331 1,037 Bus services - - - - - 26 7,087 4,501 Other services and supplies 3,236 6,009 16,181 15,002 3,226 2,653 3,752 3,288 Grants paid for community and social benefits 1,085 - 16,510 21,211 27,410 25,446 721 - Employee entitlements 3,980 3,967 17,810 18,047 3,655 3,013 1,756 1,304 Assets transferred to other agencies - - - 21,404 - - - - Capital asset charge 544 155 484 4,209 35 22 2,897 1,858 Depreciation and amortisation expense 417 289 1,690 1,815 137 122 747 873 Resources provided free of charge 80 8 10 65 2 22 36 4 Revaluation write down of assets ------3,836 Other expenses from ordinary activities 3 - 24 6,422 5 - 1 - Total expenditure 9,345 10,428 55,236 91,344 40,253 38,434 18,700 16,773 Net result for the reporting period (728) 524 (3,617) (27,825) 1,192 3,071 (3,605) 11,168 Net increase in asset revaluation reserve - - 3,400 - - - - 9,902 Total changes in equity other than those resulting from transactions with Victorian Government in its capacity as owner (728) 524 (217) (27,825) 1,192 3,071 (3,605) 21,070

82 Department of Infrastructure Annual Report 2001–02 Notes to the financial statements for the year ended 30 June 2002

Regional and Regional and Metro Transport Metro Transport Transport Safety Total Rural Transport Rural Transport Services Infrastructure and Accessibility Services Infrastructure

$’000 $’000 $’000 $’000 $’000 $’000

2002 2001 2002 2001 2002 2001 2002 2001 2002 2001 2002 2001

275,629 255,659 422,032 293,799 956,579 916,040 423,677 354,773 211,445 242,903 2,406,086 2,180,616 - 16,489 - 19,355 - 32,611 - 19,121 - 21,804 - 135,855 71,171 26,008 - - 105,834 107,135 4,043 - - 2,500 181,102 135,643 346,800 298,156 422,032 313,154 1,062,413 1,055,786 427,720 373,894 211,445 267,207 2,587,188 2,452,114

122,332 108,523 1,811 3,028 820,290 768,407 3,308 5,992 - - 949,113 886,022 - - 326,252 286,003 - - 401,420 310,156 173,607 201,466 909,922 808,962 159,639 150,150 - 1,735 237,312 227,014 - 3,452 2,261 2,039 406,299 388,917 4,373 5,043 14,673 11,701 11,016 11,242 7,101 4,564 49,104 48,831 112,662 108,330 1,303 668 4 22 2,330 2,845 61 92 2,245 3,811 51,669 54,095 5,636 4,825 5,934 2,757 11,075 9,121 1,897 1,229 6,487 5,248 58,230 49,512 - - - - - 16,222 11,669 - - - 11,669 37,626 1,780 1,138 480 59 3,989 2,165 11,351 10,945 354 529 21,914 21,082 966 743 2,006 163 2,209 1,619 301 201 905 803 9,379 6,629 98 1,118 57 203 275 3,136 24 247 12 280 594 5,083 - - - - - 587 - - - - - 4,422 77 252 1 - 215 - 122 3 11 34 458 6,712 296,204 272,460 351,218 305,671 1,088,711 1,042,358 437,254 336,881 234,987 263,042 2,531,909 2,377,392 50,596 25,695 70,814 7,483 (26,298) 13,427 (9,534) 37,013 (23,542) 4,165 55,279 74,722 - - - - - 19,589 26,303 - - - 29,703 29,491

50,596 25,695 70,814 7,483 (26,298) 33,016 16,769 37,013 (23,542) 4,165 84,982 104,213

Department of Infrastructure Annual Report 2001–02 83 Notes to the financial statements for the year ended 30 June 2002

Note 2. Output groups of the Department (continued)

Output groups schedule – controlled assets and liabilities for the year ended 30 June 2002

Strategic Balanced Supporting Ports and Land Use and Planning and Local Intermodal Infrastructure Environmental Government Gateways Planning Systems

$’000 $’000 $’000 $’000

Current assets 2002 2001 2002 2001 2002 2001 2002 2001 Cash assets - - 395 397 1,607 1,349 504 (136) Receivables 115 907 96 240 1,003 2,063 81 1,983 Prepayments 8 108 48 108 20 108 10 108 Inventories ------Total current assets 122 1,015 540 745 2,630 3,520 595 1,955

Non-current assets Receivables 71 153 257 759 191 126 95 51 Inventories ------Infrastructure, property plant and equipment 2,270 8,224 6,381 31,190 504 1,761 35,493 19,374 Intangible assets 1,076 2 1,009 579 14 4 706 1 Loans - - - - 2,000 2,000 - - Total non-current assets 3,417 8,379 7,647 32,529 2,709 3,891 36,295 19,426

Total assets 3,540 9,393 8,186 33,274 5,338 7,411 36,890 21,380

Current liabilities Payables 419 5,878 1,515 5,878 1,124 5,878 792 5,878 Provisions for employee entitlements 663 421 1,976 2,088 386 346 245 141 Total current liabilities 1,082 6,299 3,491 7,966 1,510 6,224 1,037 6,019

Non-current liabilities Provisions for employee entitlements 1,160 768 3,770 3,811 676 631 428 258 Total non-current liabilities 1,160 768 3,770 3,811 676 631 428 258

Total liabilities 2,242 7,066 7,261 11,776 2,186 6,855 1,465 6,277

Net assets 1,298 2,327 925 21,497 3,152 557 35,425 15,103

84 Department of Infrastructure Annual Report 2001–02 Notes to the financial statements for the year ended 30 June 2002

Regional and Regional and Metro Transport Metro Transport Transport Safety Total Rural Transport Rural Transport Services Infrastructure and Accessibility Services Infrastructure

$’000 $’000 $’000 $’000 $’000 $’000

2002 2001 2002 2001 2002 2001 2002 2001 2002 2001 2002 2001 31,408 17,759 35,935 35,616 125,632 68,036 41,361 36,962 25,126 25,208 261,968 185,190 23,893 20,348 2,349 2,355 95,393 80,773 14,815 6,706 641 945 138,387 116,319 146 108 159 108 535 108 171 108 133 108 1,230 972 ------3,521 - - - 3,521 - 55,448 38,214 38,442 38,079 221,561 148,917 59,867 43,776 25,900 26,260 405,106 302,481

1,951 854 1,507 111 7,324 3,001 1,613 48 1,252 217 14,261 5,320 ------5,352 - - - 5,352 - 22,694 11,061 5,454 6,941 52,658 27,836 359,960 (1) 4,441 15,108 489,856 121,495 1,401 198 34 - 2,939 7,138 69 5 3,140 25 10,389 7,952 ------2,000 2,000 26,047 12,113 6,995 7,052 62,921 37,975 366,994 52 8,833 15,350 521,858 136,767

81,493 50,328 45,439 45,131 284,483 186,892 426,861 43,828 34,733 41,611 926,964 439,248

20,955 20,058 8,874 5,878 80,985 62,599 20,580 5,878 7,372 5,878 142,616 123,803 610 529 704 305 1,169 977 381 131 627 596 6,761 5,534 21,565 20,587 9,578 6,183 82,154 63,576 20,961 6,009 7,999 6,474 149,377 129,337

1,068 966 1,232 558 2,046 1,783 256 239 1,098 1,089 11,734 10,102 1,068 966 1,232 558 2,046 1,783 256 239 1,098 1,089 11,734 10,102

22,633 21,553 10,810 6,741 84,200 65,359 21,217 6,249 9,097 7,563 161,111 139,439

58,860 28,775 34,629 38,390 200,283 121,533 405,644 37,579 25,636 34,048 765,853 299,809

Department of Infrastructure Annual Report 2001–02 85 Notes to the financial statements for the year ended 30 June 2002

Note 3. Major Projects Victoria (refer also note 1(a)(iv) and note 4(c))

Land sales The activities of Major Projects Victoria (MPV) includes land sales from nominated property development projects which are remitted directly into the consolidated fund and are reported as administered items in the Departments Financial Statements (refer note 28 Administered Items). The level of settlements realised on these residential developments and land sales are slowly diminishing as these projects are approaching completion.

Project development and construction management for sponsor agencies MPV, under delegated authority from the ‘Secretary to the Department of Infrastructure’ manages the Government’s interest in delivering major projects, drawing on funds appropriated to sponsor agencies.

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

Capital works expenditure undertaken during the reporting period by MPV has been included in the Statement of Cash Flows and in the sponsor agencies’ accounts as either completed works, or works in progress. While the Statement of Financial Performance does not include the income or expenditure of sponsor agencies, the Statement of Financial Position does reflect funds owing for project works and monies held on behalf of sponsor agencies. The following summary represents sponsor agencies where capital expenditures have been undertaken by MPV for the period 5 March 2002 to 30 June 2002.

Sponsor agency $’000 period 5 March 2002 to 30 June 2002 Department of Premier and Cabinet 44,097 Department of Innovation, Industry and Regional Development 558 Department of Tourism, Sport and the Commonwealth Games 2,606 47,261

Feasibility studies MPV undertakes feasibility studies and preliminary appraisals on projects requested by Government prior to projects being nominated.

86 Department of Infrastructure Annual Report 2001–02 Notes to the financial statements for the year ended 30 June 2002

Note 4. Restructuring of administrative arrangements Assets assumed by the Department as a result of the change in administrative arrangements are recognised in the Statement of Financial Position at the carrying amount of those assets in the transferor’s (Melbourne City Link Authority, Marine Board of Victoria and Major Projects Victoria) statement of financial position immediately prior to the transfer. The transfer was treated as follows:

Net capital contribution from the Crown (see below): 2002 2001 $’000 $’000 4(a) Office of the Director of Marine Safety 1,555 - 4(b) Office of Director, Melbourne City Link 335,626 - 4(c) Secretary to the Department of Infrastructure 22,507 - Total capital contribution from the Crown (see note 20) 359,688 -

Department of Infrastructure Annual Report 2001–02 87 Notes to the financial statements for the year ended 30 June 2002

Note 4. Restructuring of administrative arrangements (continued)

4(a) Office of Director of Marine Safety The Marine (Further Amendment) Act 2001 abolished the Marine Board of Victoria as a statutory authority on 6 February 2002 and established the Office of Director of Marine Safety to perform the functions previously performed by the Board. The Office of Director of Marine Safety has become a branch within the Ports and Marine Division in the Department of Infrastructure from 7 February 2002. All assets and liabilities vesting in the Marine Board prior to that date, now vest in the Director on behalf of the Crown and are incorporated in the financial statements of the Department

Up to the date of abolition, the Marine Board of Victoria’s operating activities were funded by the Department (also refer note 8). The operating activities performed by the Office of Director of Marine Safety are therefore reflected in the Statement of Financial Performance of the Department for the period from 7 February 2002 to 30 June 2002.

Details of the assets and liabilities assumed by the Department are as follows:

Output – ports and intermodal gateways In respect of the activities assumed, the following assets and liabilities were recognised: 2002 2001 (as at 6 Feb 2002) $’000 $’000 Assets Receivables (including cash advance $6,000) 189 - Marine pollution equipment 244 - Office equipment and EDP 105 - Furniture and fittings 4 - Leasehold improvements 190 - Intangible assets 1,540 - Work in progress 24 2,296 - - Liabilities Bank 20 - Payables 77 - Employee entitlements 644 741 - - Net capital contribution from the Crown 1,555 -

88 Department of Infrastructure Annual Report 2001–02 Notes to the financial statements for the year ended 30 June 2002

Note 4. Restructuring of administrative arrangements (continued)

4(b) Office of Director, Melbourne City Link Under sections 38 and 39 of the Melbourne City Link (Miscellaneous Amendments) Act 2000, the Melbourne City Link Authority (MCLA) was wound up on 28 February 2002. Sections 6A and 6B of the Melbourne City Link Act 1995 established the position of Office of Director, Melbourne City Link and conferred on the Director the statutory functions to manage the City Link arrangements on behalf of the State. The transfer of all assets and liabilities from the former MCLA to the Office of Director, Melbourne City Link took place on 1 March 2002.

The operating activities performed by the Office of Director, Melbourne City Link are therefore reflected in the Statement of Financial Performance of the Department for the period from 1 March 2002 to 30 June 2002. Revenue during this period relating to the Concession Fee Notes totalling $12.016 million has been reflected as administered activities. In addition, there is an administered asset received free of charge of $117.005 million for concession fee notes which was also transferred to the Department. (also refer notes 1(e), 1(n) and 28).

Details of the assets and liabilities assumed by the Department are as follows:

Output – metropolitan transport infrastructure In respect of the activities assumed, the following assets and liabilities were recognised:

2002 2001 (as at 28 Feb 2002) $’000 $’000

Assets Cash at bank 6,682 - Receivables 1,009 - Property, plant and infrastructure 331,883 339,574 - -

Liabilities Payables 1,744 - Other 2,204 3,948 - - Net capital contribution from the Crown 335,626 -

4(c) Secretary to the Department of Infrastructure The Project Development and Construction Management Act 1994 established the Secretary to the Department of Infrastructure as a body corporate with powers and functions relating to the management and facilitation of public construction activities for the Secretary. These activities include the functions performed by Major Projects Victoria.

As a result of Machinery of Government changes in February 2002, the body corporate responsibility of Major Projects Victoria was transferred from the Secretary to the former Department of State and Regional Development to the Secretary to the Department of Infrastructure via a gazettal dated 5 March 2002.

Department of Infrastructure Annual Report 2001–02 89 Notes to the financial statements for the year ended 30 June 2002

Note 4. Restructuring of administrative arrangements (continued) Under the Financial Management Act 1994, the Minister for Finance has approved the consolidation of the report of operations and financial statements of the Department of Infrastructure and the Secretary to the Department of Infrastructure. The date of reporting the operations of Major Projects Victoria in these statements is 5 March 2002.

The operating activities performed by Major Projects Victoria are therefore reflected in the Statement of Financial Performance for the period from 5 March 2002 to 30 June 2002. The Department has recognised revenues and expenses amounting to $3,165,251 and $1,662,183 respectively during the reporting period in respect of changes in outputs. The total revenues and expenses recognised by the Department and the former Department of State and Regional Development in respect of this output for the year ended 30 June 2002 are $17,198,584 and $11,544,183 respectively.

Details of the assets and liabilities assumed by the Department are as follows:

Output – metropolitan transport infrastructure In respect of the activities assumed, the following assets and liabilities were recognised:

2002 2001 (as at 5 March 2002) (as at 31 March 2002) (note a)

Assets $’000 $’000 Cash at bank 2,669 3,390 Receivables 3,863 7,623 Prepayments 260 - Freehold land 9,910 9,910 Land inventory 7,144 7,050 Property, plant and equipment 1,343 25,189 417 28,930

Liabilities Payables 2,282 9,544 Provisions 400 2,682 475 10,019

Assets provided free of charge - 18,911 Net capital contribution from the Crown 22,507 -

Note (a) – year ended 30 June 2001 comparative As a result of the Project Development and Construction Management (Amendment) Act 2000, the Secretary to the Department of State and Regional Development was established as a body corporate. Also under that Act, the Secretary to the Department of Infrastructure was required to transfer on 31 March 2001 all designated projects and assets and liabilities performed by the Office of Major Projects (now referred to as ‘Major Projects Victoria’) to the Secretary to the Department of State and Regional Development.

90 Department of Infrastructure Annual Report 2001–02 Notes to the financial statements for the year ended 30 June 2002

Note 5. Revenue

Revenue by source Operating Non-operating 2002 2001 2002 2001 $’000 $’000 $’000 $’000

Revenue from government Output appropriations 2,406,086 2,180,616 - - Appropriations – additions to net asset base - 135,855 - - 2,406,086 2,316,471 - -

Revenue from other parties Revenue from other departments 76,927 74,482 - - Transport related revenue 55,198 57,476 - - Proceeds from sale of investment in the National Rail Corporation 44,644 - - - Other revenue - - 2,126 1,642 Interest - - 2,207 2,043 176,769 131,958 4,333 3,685

Total revenue 2,582,855 2,448,429 4,333 3,685

Department of Infrastructure Annual Report 2001–02 91 Notes to the financial statements for the year ended 30 June 2002

Note 6. Summary of compliance with annual parliamentary appropriations

(a) Summary of compliance with annual parliamentary appropriations The following table discloses the details of the various parliamentary appropriations received by the Department for the year. In accordance with accrual output-based management procedures ‘Provision for outputs’ and ‘Additions to net assets’ are disclosed as ‘controlled’ activities of the Department. Administered transactions are those that are undertaken on behalf of the State over which the Department has no control or discretion.

Appropriation Act

Annual appropriation Payments from Section 3(2) Section 29 (a) advance to Treasurer

$’000 $’000 $’000 $’000

2002 2001 2002 2001 2002 2001 2002 2001 Controlled

Provision for outputs 2,102,715 2,020,796 81,162 49,673 2,463 - 269,051 113,611 Additions to net assets 210,701 124,343 - 2,620 ----

Administered Payments made on behalf of the State 11,383 11,176------

Total 2,324,799 2,156,315 81,162 52,293 2,463 - 269,051 113,611

(a) Includes Major Projects Victoria Machinery of Government funding ($1.183 million provision for Outputs; $2.636 million additions to net assets). Transfer under section 4 (3) of the Administrative Arrangements Act 1983.

(b) The variance is due to agreed changes in committed projects being delivered in the 2002/03 year.

92 Department of Infrastructure Annual Report 2001–02 Notes to the financial statements for the year ended 30 June 2002

Financial Management Act 1994

Section 30 Section 32 Section 35 Total Parliamentary Appropriations Variance (b) Authority applied

$’000 $’000 $’000 $’000 $’000 $’000

2002 2001 2002 2001 2002 2001 2002 2001 2002 2001 2002 2001

(25,300) (4,447) 12,989 15,727 - - 2,443,080 2,195,360 2,406,086 2,180,616 36,994 14,744 25,300 4,447 6,100 12,960 - 2,625 242,101 146,995 192,373 135,855 49,729 11,140

------11,383 11,176 10,198 9,719 1,185 1,457

- - 19,089 28,687 - 2,625 2,696,564 2,353,531 2,608,656 2,326,190 87,908 27,341

Department of Infrastructure Annual Report 2001–02 93 Notes to the financial statements for the year ended 30 June 2002

Note 7. Rail services 2002 2001 $’000 $’000 Operating subsidies (refer note (a) below) 907,493 886,022 Settlement payment to franchisees (note (b) below) 41,620 - 949,113 886,022

Note (a) The Department’s Rail Project Group has incurred preliminary expenses totalling $4.123 million relating to the proposed Spencer Street Station Development to 30 June 2002. The Department has an agreement in place to act on Spencer Street Station Authority’s behalf on certain activities relating to the development. This is regarded as a resource provided free of charge to the authority.

Note (b) In February 2002, the Government reached an interim agreement with the public transport franchisees for payment to settle various contractual claims and disputes.

Note 8. Other services and supplies 2002 2001 $’000 $’000 Multipurpose taxi program 39,295 39,206 Marine services (payment to the Marine Board of Victoria)* 2,959 4,892 Tow-truck allocation scheme 412 355 Administration and Information Technology 18,331 24,510 Legal, insurance and internal audit fees 6,408 5,263 Occupancy 7,260 6,598 Other 37,997 27,506 Total other services and supplies 112,662 108,330 * funding to the Marine Board of Victoria to 6 February 2002 – the date of abolition (also refer note 4(a)).

94 Department of Infrastructure Annual Report 2001–02 Notes to the financial statements for the year ended 30 June 2002

Note 9. Grants paid for community and social benefits During the year, funds have been expended on projects for community and social benefits Note (a) – The lower level of Output 2002 2001 actual expenditure in 2001/2002 Transport-related activities Group* $’000 $’000 reflects unspent funds in 2001/02 which will be carried forward and Pensioner subsidies to private bus operators 5,7 2,382 2,379 spent in 2002/03 under section Keep Australia beautiful – 32 of the Financial Management station beautification program 6,8 50 114 Act 1994. National Road Transport Commission contribution 9 612 615 National Transport Secretariat 5,7 197 197 * Legend for Output Groups Port of Echuca – wharf rail reconnection 4 112 - – year ended 30 June 2002 Yarra Valley Tourist Railway 6 93 - (also refer note 2) Keon Park rail crossing 8 148 - Tramway Museum Society 8 75 - 1. Strategic Land Use and Moomba tram parade 7 60 30 Infrastructure Planning Portland Cable Car 6 60 - 2. Balanced Planning and Travellers Aid Society 5,7 53 - Environmental Systems

Planning, local government and community activities 3. Supporting Local Government Library grants to local governments 3 24,521 24,156 4. Ports and Intermodal Public library book grants 3 1,276 - Gateways Contributions to local government – Public Heritage Program, Heritage Study Grant 2 4,736 7,548 5. Regional and Rural – Beach cleaning 3 1,313 1,290 Transport Services Heritage Council contribution 2 623 623 6. Regional and Rural Urban improvement, design, planning Transport Infrastructure (incl. Pride of Place) 2 4,195 5,935 7. Metropolitan Transport Camp Street, Ballarat project 2 6,555 4,899 Services Local government infrastructure renewal 3 293 - 8. Metropolitan Transport Marine safety and other activities Infrastructure Sports and entertainment precinct development 2 - 2,198 9. Transport Safety and Accessibility National Marine Safety Council 9 206 206 Boating safety (facilities) fund (note (a)) 9 1,657 2,366 Boating safety fund (note (a)) 9 404 502 Marine radio communications 9 500 - Point Lonsdale Lighthouse 9 240 240 Sea Freight Industry Council 4 100 100

Other 1,208 697 Total 51,669 54,095

Department of Infrastructure Annual Report 2001–02 95 Notes to the financial statements for the year ended 30 June 2002

Note 10. Assets transferred to other agencies 2002 2001 $’000 $’000 Transfer to Melbourne Olympic Parks Trust (i) 11,669 - Transfer of Rail Infrastructure assets to Victorian Rail Track Corporation (VicTrack) - 16,222 Transfer of net assets to the Secretary to the Department of State and Regional Development - 18,911 Transfer of property to the Department of Justice - 2,493 11,669 37,626

(i) Former Melbourne City Link land deemed surplus to the City Link project transferred to the Melbourne Olympic Parks Trust.

Note 11. Capital asset charge Capital asset 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 2001–02 financial year, the capital asset charge was generally based on 8 per cent of the net written-down value of assets (2000–01 year– 8 per cent).

96 Department of Infrastructure Annual Report 2001–02 Notes to the financial statements for the year ended 30 June 2002

Note 12. Result from ordinary activities Net gains and expenses 2002 2001 The net result for the reporting period includes the following specific net gains and expenses: $’000 $’000

Expenses Employee entitlements Salary and wages 42,040 39,793 Superannuation 4,046 3,477 Annual leave and long-service leave expense 6,224 2,175 Other on-costs (fringe benefits tax, payroll tax and workcover levy) 5,920 4,067 Total employee entitlements 58,230 49,512

Depreciation Buildings 156 228 Plant and equipment 3,177 2,965 Infrastructure assets 1,937 797 Total depreciation 5,270 3,990

Amortisation Leasehold improvements 1,562 1,905 Intangible assets 2,547 734 Total amortisation 4,109 2,639 Total depreciation and amortisation 9,379 6,629

Net loss on disposal - property, plant and equipment (Note a) 148 49

Other provisions Employee entitlements (see note 19) 2,859 769

Rental expense relating to operating leases Minimum lease payments 7,260 6,598

Note (a): Under government guidelines all proceeds from sale of assets are remitted to the consolidated fund and are treated as ‘administered’ revenue (refer note 1(a)). As a result, the written down value of the disposal asset is treated as a ‘loss’ in these ‘controlled’ accounts without recognition of the proceeds received.

Department of Infrastructure Annual Report 2001–02 97 Notes to the financial statements for the year ended 30 June 2002

Note 13. Cash assets 2002 2001 $’000 $’000 Cash at bank and on hand 6,295 (6,874) Short term deposits 44,911 37,109 Funds held in trust 210,762 154,955 261,968 185,190

The above figures are reconciled to cash at the end of the financial year as shown in the statement of cash flows as follows: Balances as above 261,968 185,190 Balances per statement of cash flows 261,968 185,190

Due to the State of Victoria’s investment policy and government funding arrangements, government departments generally do not hold a large cash reserve in their bank accounts. Cash received by a department from the generation of revenue is generally paid into the State’s bank account, known as the Public Account. Similarly, any departmental expenditure, including those in the form of cheques drawn by the department for the payment of goods and services to its suppliers and creditors are made via the Public Account. The process is such that, the Public Account would remit to the department the cash required for the amount drawn on the cheques. This remittance by the Public Account occurs upon the presentation of the cheques by the department’s suppliers or creditors. The above funding arrangements often result in departments having a shortfall in the cash at bank required for payment of unpresented cheques at reporting date. At 30 June 2002, cash at bank include the amount of a shortfall for the payment of unpresented cheques of $2,623,527 (2001 - $6,884,422). Short-term deposits The deposits are bearing floating interest rates between 4% and 5% (2001 – 4% and 5%)

98 Department of Infrastructure Annual Report 2001–02 Notes to the financial statements for the year ended 30 June 2002

Note 14. Receivables 2002 2001 Current: $’000 $’000 Amounts owing from Victorian Government 104,878 92,919 Other debtors 33,509 23,400 138,387 116,319

Non-current: Amounts owing from Victorian Government 11,424 2,013 Other debtors 2,837 3,307 14,261 5,320

Aggregate carrying amount of receivables: Current 138,387 116,319 Non-current 14,261 5,320 152,648 121,639

Note 15. Inventories 2002 2001 Current: $’000 $’000 Land inventory – at cost 3,521 - 3,521 -

Non-current: Land inventory – at cost 5,352 - 5,352 -

Aggregate carrying amount of inventories: Current 3,521 - Non-current 5,352 - 8,873 -

The land inventory is owned by the body corporate, Secretary to the Department of Infrastructure. The body corporate activities include the functions performed by Major Projects Victoria.

Department of Infrastructure Annual Report 2001–02 99 Notes to the financial statements for the year ended 30 June 2002

Note 16. Infrastructure, property, plant and equipment 2002 2001 Land and buildings $’000 $’000 Land At cost 40,153 20,908 At valuation 2002 36,485 - At valuation 2001 36,740 36,740 At valuation 2000 858 - At valuation 1999 13,755 13,328 At valuation 1998 28,867 - At valuation 1997 62,266 - 219,124 70,976 Buildings At cost 6,726 1,490 At valuation 2001 2,875 2,875 At valuation 1999 3,258 3,258 Less: accumulated depreciation – at cost (79) (52) Less: accumulated depreciation – at valuation (291) (162) 12,489 7,409 Total land and buildings 231,613 78,385

Infrastructure Infrastructure – at cost 163,221 - Infrastructure – at independent valuation 2001 19,435 19,435 Infrastructure – at independent valuation 1997 48,583 - Less: accumulated depreciation – at cost (1,001) - Less: accumulated depreciation – at valuation (937) - Total infrastructure 229,301 19,435

100 Department of Infrastructure Annual Report 2001–02 Notes to the financial statements for the year ended 30 June 2002

Note 16. Infrastructure, property, plant and equipment (continued) 2002 2001 Plant and equipment $’000 $’000 At cost 20,799 17,627 Less: accumulated depreciation (12,914) (10,294) 7,885 7,333

Leasehold improvement office assets – at cost 15,228 12,354 Less: accumulated amortisation (5,902) (3,959) 9,326 8,395 Total plant and equipment 17,211 15,728

Work in progress Infrastructure and other assets 11,393 7,609 Total work in progress 11,393 7,609

Heritage assets At cost 20 20 At independent valuation 1999 318 318 Total Heritage assets 338 338

Total net written-down value 489,856 121,495

Department of Infrastructure Annual Report 2001–02 101 Notes to the financial statements for the year ended 30 June 2002

Note 16. Infrastructure, property, plant and equipment (continued) Valuations of non-current physical assets transferred from the former Melbourne City Link Authority (MCLA)

The Minister for Finance has provided an exemption under section 47 of the Financial Management Act 1994 from the need to apply the Department of Treasury and Finance’s Revaluation of Non-Current Physical Assets Policy as at 30 June 2002 for the land and infrastructure non-current assets transferred to the Department from the former MCLA. Due to the complex nature of the winding up of former MCLA’s assets, the exemption allows these assets to be revalued subsequent to the year ending 30 June 2002.

Valuation of other non-current physical assets

The basis of valuation for land adopted as at 30 June 2002 is fair value and was undertaken by the Valuer-General Victoria.

The basis of valuation of land and buildings and infrastructure assets for the 2001 year, undertaken by the Valuer-General, was on a market value basis whilst valuations of remaining assets prior to 2001 undertaken by independent valuers, have been on a deprival value basis.

All classes of assets (except plant and equipment) are subject to a progressive revaluation over the period commencing from 1 July 2002 with a completion date of 30 June 2005. The approach in determining which items within the class are revalued in each reporting period is based on an assessment of the age of the asset and the date of the previous revaluation. As a result, the assets with the oldest valuation will be revalued in the earlier years of the plan. Plant and equipment is valued at cost (also refer note 1(h)).

Freehold Buildings Leasehold Plant and Infrastructure Work in Heritage Total 2002 land Improvement equipment assets progress assets Office assets

$'000 $'000 $'000 $'000 $'000 $'000 $'000 $’000 Carrying amount at start of year 70,976 7,409 8,395 7,333 19,435 7,609 338 121,495 Additions - 5,236 1,532 2,775 - 8,037 - 17,580 Disposals (48) - - (100) - - - (148) Net additions through restructuring 131,920 - 961 1,326 209,472 24 - 343,703 Revaluation reserve increments/(decrements) (note 20(c)) 29,975 - - (272) - - - 29,703 Reallocation of WIP - - - - 2,331 (2,331) - - Depreciation/amortisation expense - (156) (1,562) (3,177) (1,937) - - (6,832) Transfer to other agencies (refer note 10 and note 20) (13,699) ------(13,699) Transferred to intangible assets - - - - - (1,946) - (1,946) Carrying amount at end of year 219,124 12,489 9,326 7,885 229,301 11,393 338 489,856

102 Department of Infrastructure Annual Report 2001–02 Notes to the financial statements for the year ended 30 June 2002

Note 17. Intangible assets 2002 2001 $’000 $’000 Software 15,019 10,034 Less: accumulated amortisation (4,630) (2,082) 10,389 7,952

Note 18. Payables 2002 2001 $’000 $’000 Trade creditors and accruals 136,015 112,553 Unearned/Pre-paid income 6,601 11,250 142,616 123,803

Note 19. Provisions 2002 2001 Current $’000 $’000 Employee entitlements Annual leave 3,497 2,754 Long-service leave 1,558 1,484 Accrued performance incentive 1,706 1,296 6,761 5,534

Non-current Employee entitlements Annual leave 1,590 1,175 Long-service leave 10,144 8,927 11,734 10,102

Aggregate carrying amount of provisions Current 6,761 5,534 Non-current 11,734 10,102 Employee entitlements 18,495 15,636

Department of Infrastructure Annual Report 2001–02 103 Notes to the financial statements for the year ended 30 June 2002

Note 20. Equity and movements in equity 2002 2001 (a) Contributed capital $’000 $’000 Balance 1 July -- Accumulated surplus at beginning of the financial year transferred to contributed capital (also refer Note 1(v)) 132,306 - Net capital contributed upon restructure (refer note 1(v) and note 4) 359,688 - Capital contribution by Victorian Government (Appropriation) (refer notes 1(v) and 6) 192,373 - Capital contribution by Victorian Government (other)(refer note 1(v)) 2,593 - Capital contributions to agencies within the Infrastructure portfolio (see * right) (173,864) - Balance 30 June 513,096 -

(b) Accumulated surplus Accumulated surplus at the beginning of the financial year 268,936 189,974 Transfer from asset revaluation reserve on 1 July 2001 272 - Accumulated surplus on 1 July 2001 transferred to contributed capital (refer note 1(v)) (132,306) - Adjusted opening balance at the beginning of the financial year 136,902 189,974 Transfer from Asset Revaluation Reserve during 2000/01 - 4,240 Net result 55,279 74,722 Balance 30 June 192,181 268,936

(c) Reserves Asset revaluation reserve 60,576 30,873 60,576 30,873 Movements Asset revaluation reserve Balance 1 July 30,873 5,622 Transfer to accumulated surplus (refer note 1(v)) (272) - Adjusted opening balance at the beginning of the financial year 30,601 5,622 Transfer to accumulated surplus due to asset disposal - (4,240) Increment on revaluation of land during the year 29,975 29,491 Balance 30 June 60,576 30,873

104 Department of Infrastructure Annual Report 2001–02 Notes to the financial statements for the year ended 30 June 2002

Note 20. Equity and movements in equity (continued)

(d) Nature and purpose of reserves

Asset revaluation reserve The asset revaluation reserve is used to record increments and decrements on the revaluation of non-current assets, as described in accounting policy note 1(h). 2002 2001 (e) Summary of equity $’000 $’000 Total equity at the beginning of the financial year 299,809 195,596 Net contributions of equity 380,790 - Total changes in equity recognised in the statement of financial performance 84,982 104,213 Transfer from asset revaluation reserve to accumulated surplus 272 - Total equity at the end of the financial year 765,853 299,809

* Capital contributions to agencies within the Infrastructure portfolio (refer note 1(v)): Road services 108,547 - Rail services (VicTrack) 62,067 - Marine services 1,219 - Other services (former Melbourne City Link land deemed surplus to the City Link project transferred to other entities) 2,031 - 173,864 -

Department of Infrastructure Annual Report 2001–02 105 Notes to the financial statements for the year ended 30 June 2002

Note 21. Financial instruments

(a) Credit risk exposures The credit risk on financial assets of the Department which have been recognised on the statement of financial position, is generally the carrying amount, net of any provisions for doubtful debts.

(b) Interest rate risk exposures The Department’s exposure to interest rate risk and the effective weighted average interest rate by maturity periods is set out in the following table. For interest rates applicable to each class of asset or liability refer to individual notes to the financial statements.

Exposures arise predominantly from assets bearing variable interest rates as the Department intends to hold fixed rate assets to maturity.

(c) Interest rate risk exposures

Fixed interest maturing in: 2002 Notes Floating 1 year Over More than Non-interest Total interest rate or less 1 to 5 years 5 years bearing

Financial assets $'000 $'000 $'000 $'000 $'000 $'000 Cash assets 13 51,206 - - - 210,762* 261,968 Receivables 14 - - - - 152,648 152,648 Loans - - - - 2,000 2,000 51,206 - - - 365,410 416,616

Weighted average interest rate 4.5%

Financial liabilities Payables 18 - - - - 142,616 142,616 - - - - 142,616 142,616

Net financial assets 51,206 - - - 222,794 274,000

106 Department of Infrastructure Annual Report 2001–02 Notes to the financial statements for the year ended 30 June 2002

Fixed interest maturing in: 2001 Notes Floating 1 year Over More than Non-interest Total interest rate or less 1 to 5 years 5 years bearing

$'000 $'000 $'000 $'000 $'000 $'000 Financial assets Cash assets 13 30,235 - - - 154,955* 185,190 Receivables 14 - - - - 121,639 121,639 Loans - - - - 2,000 2,000 30,235 - - - 278,594 308,829

Weighted average interest rate 4.5%

Financial liabilities Payables 18 - - - - 123,803 123,803

Net financial assets 30,235 - - - 154,791 185,026

* Any interest earned on cash assets held by the Department of Treasury and Finance on behalf of the Department of Infrastructure is accounted for by the Department of Treasury and Finance.

Department of Infrastructure Annual Report 2001–02 107 Notes to the financial statements for the year ended 30 June 2002

Note 21. Financial instruments (continued)

(d) Net fair value of financial assets and liabilities

(i) On-statement of financial position The net fair value of cash and cash equivalents and non-interest bearing monetary financial assets and financial liabilities of the Department approximates their carrying amounts.

The net fair value of other monetary financial assets and financial liabilities is based upon market prices where a market exists.

The carrying amounts and net fair values of financial assets and liabilities at reporting date are:

2002 2001

On-statement of financial position Carrying amount Net fair value Carrying amount Net fair value Financial assets $’000 $’000 $’000 $’000 Cash assets 261,968 261,968 185,190 185,190 Receivables 152,648 152,648 121,639 121,639 Loans 2,000 2,000 2,000 2,000 416,616 416,616 308,829 308,829 Financial liabilities Payables 142,616 142,616 123,803 123,803 142,616 142,616 123,803 123,803

Net financial assets 274,000 274,000 185,026 185,026

(ii) Off-statement of financial position The Department has potential financial liabilities which may arise from certain contingencies disclosed in note 25. As explained in that note, contingent liabilities by definition are similar to a liability – the distinguishing feature being the uncertainty over the Government’s obligation.

108 Department of Infrastructure Annual Report 2001–02 Notes to the financial statements for the year ended 30 June 2002

Note 22. Ministers and Accountable Officers In accordance with the Directions of the Minister for Finance under the Financial Management Act 1994, the following disclosures are made regarding responsible persons for the reporting period.

Names The persons who held the above positions in the Department are as follows:

Minister for Transport The Hon. Peter Batchelor MP 1 July 2001 to 30 June 2002

Minister for Planning The Hon. Mary Delahunty MP 10 February 2002 to 30 June 2002

Minister for Planning The Hon. John Thwaites MP 1 July 2001 to 10 February 2002

Minister for Local Government The Hon. Bob Cameron MP 1 July 2001 to 30 June 2002

Minister for Ports The Hon. Candy Broad MLC 1 July 2001 to 30 June 2002

Minister for Major Projects The Hon. Peter Batchelor MP 10 February 2002 to 30 June 2002

Accountable Officer Prof. Lyndsay Neilson Secretary, Department of Infrastructure 1 July 2001 to 30 June 2002

Remuneration Remuneration received or receivable by the Accountable Officer (excluding Acting Accountable Officers whose remuneration is included in ‘Remuneration of Executives’ – see note 23, in connection with the management of the Department during the reporting period) was in the range:

2001-02 – $270,000 – $279,999 (2000-01 – $220,000 - $229,999)

Amounts relating to Ministers are reported in the financial statements of the Department of Premier and Cabinet.

Other transactions (a) 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.

(b) The Secretary of the Department is a shareholder in the Revenue Clearing House Pty Ltd and Vic Trip Pty Ltd as the appointed representative of the bus operators with whom the Department has a route bus service contract. The Department’s shareholding is one ordinary share at $1.00 in each company.

Department of Infrastructure Annual Report 2001–02 109 Notes to the financial statements for the year ended 30 June 2002

Note 23. Remuneration of executives The numbers of executive officers, other than Ministers and the Accountable Officer, and their total remuneration during the reporting period are 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. The ‘income bands’ and the ‘total amount’ classifications referred to below reflect the actual remuneration paid during the year.

Several factors have affected total remuneration payable to executives over the year. There was a 6% biennial increase paid to a number of executive officers based on assessments by management. There has also been a decrease in the number of executive officers in the ‘Less than $100,000’ category and an increase in the higher bands.

Total remuneration Base remuneration 2002 * 2001 ** 2002 * 2001 ** Income band No. No. No. No. Less than $100,000 19 22 21 24 $100,000 – 109,999 6 5 5 10 $110,000 – 119,999 8 5 12 12 $120,000 – 129,999 11 10 12 7 $130,000 – 139,999 8 7 6 2 $140,000 – 149,999 3 5 1 2 $150,000 – 159,999 4 2 4 0 $160,000 – 169,999 1 2 0 3 $170,000 – 179,999 3 0 2 2 $180,000 – 189,999 1 2 6 2 $190,000 – 199,999 2 1 2 0 $200,000 – 209,999 1 2 0 1 $210,000 – 219,999 3 0 0 0 $220,000 – 229,999 1 1 0 1 $230,000 – 239,999 0 1 0 0 $240,000 – 249,999 0 0 1 0 $250,000 – 259,999 0 1 0 0 $270,000 – 279,999 1 0 0 0

Total numbers 72 66 72 66

Total amount $8,815,928 $7,403,904 $8,387,082 $6,680,242

* On 5 March 2002, Major Projects Victoria (formerly Office of Major Projects) transferred back to the Secretary to the Department of Infrastructure. The above details reflect remuneration paid to executive officers from 5 March 2002 to 30 June 2002.

** The details above include the remuneration paid to Executive Officers of the former Office of Major Projects (OMP) for the period to 31 March 2001, at which time OMP’s functions were transferred to the Secretary to the Department of State and Regional Development.

110 Department of Infrastructure Annual Report 2001–02 Notes to the financial statements for the year ended 30 June 2002

Note 24. Remuneration of auditors Audit fees paid or payable to the Victorian Auditor-General’s Office for audit 2002 2001 of the Department’s financial report: $’000 $’000

Paid as at 30 June 70 108 Payable as at 30 June 170 98 240 206

Note 25. 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.

Public Transport Rail Franchise Agreements During 1999/2000 the Director of Public Transport, on behalf of the Crown, entered into contractual arrangements with franchisees to operate passenger rail transport services in the State (refer note 1(a)(i)). The following summarises the major contingent liabilities arising from those arrangements.

Contingent Liabilities on early termination or expiry of franchise agreements

New rolling stock lease direct agreements: As part of the franchising arrangements, the franchisee of each passenger rail business has undertaken to provide new rolling stock. Each franchisee is expected to enter into a lease with a third party lessor with respect to this rolling stock. In addition, the Director is expected to enter into rolling stock direct agreements with the respective lessors to protect the State’s interest in the rolling stock. In the event of expiry or on early termination of the franchises the Director can either exercise a right to acquire the new rolling stock at predetermined values or the lease payment obligations are transferred to the Director or a successor franchisee. At 30 June 2002, all five rolling stock direct agreements have been entered into (2001 – three). The contingent liability of the Director to take over the lease payments only commences upon delivery of the units of new rolling stock. A total of 31 (2001- Nil) units of new rolling stock have been delivered as at 30 June 2002.

Other direct agreements:

The Director is also party to a number of other direct agreements with the providers of key services to franchisees in respect of carrying out their operations. The intention of these agreements is that in the event of a ‘Step-in Event’ occurring or on early termination or expiry of a franchise that the key services will be (at the option of the Director), continued by the providers for the Director or his nominee under the same terms and conditions as the original contract where the Director or his nominee assumes the rights and obligations of the original franchisee.

Payments on termination: On termination of the franchise agreements by expiry or otherwise the Director will have a liability:

• to pay for certain assets and liabilities on the basis set out in the agreements. If on termination there is a net liability then franchisees will pay the Director; and • for termination value payments in respect of designated rolling stock improvements and capital projects (estimated contingent liability at 30 June 2002 - $139.3 million (2001 - $12.6 million)).

Department of Infrastructure Annual Report 2001–02 111 Notes to the financial statements for the year ended 30 June 2002

Note 25. Contingent liabilities (continued)

Contingent liability offsets on early termination of franchise agreements With respect to any additional costs arising to the Director on the early termination of a franchise, the franchisee must indemnify the Director for any losses, damages or costs incurred by him as a result of the early termination. If the franchisee does not do so, the Director has the right to draw on the franchisee’s performance bond for the amount of those losses, damages or costs. These bonds total $235 million (2001 – $133.2 million).

The Director also has a fixed and floating charge over franchisee assets as security for amounts payable by franchisees.

Contingent liabilities arising from potential changes to existing conditions

Change in Victorian Law: Franchisees may make a claim against the Director for any net losses incurred as a result of a change in Victorian Law which directly relates to the franchise business.

Latent defects: If a latent defect is identified in any part of the infrastructure which has been leased to the franchisees, and the cost of rectifying the defect is in excess of a threshold amount, then the Director will indemnify the franchisee for the amount by which the cost of the works to rectify the defect exceeds the threshold amount.

Pre-existing contamination: The Director has indemnified franchisees from and against all losses, damages, liabilities, actions, suits, claims, demands, costs and expenses of every kind arising from a failure by the Director to clean-up the land as defined in the infrastructure leases entered into with franchisees.

Native Title: The Director is liable for payments of any valid compensation claim to native title holders made under the Native Title Act 1993 or other laws relating to native and aboriginal title in respect of the land as defined in the infrastructure leases entered into with franchisees.

Net gain and net loss provisions: On the occurrence of certain events specified in the franchise agreements, including the undertaking of infrastructure works by the State, the franchisees may make a claim against the Director if the franchisee incurs a net loss as a result of those events. The Director also has the right to claim against the franchisees any net gain as a result of those events.

112 Department of Infrastructure Annual Report 2001–02 Notes to the financial statements for the year ended 30 June 2002

Note 25. Contingent liabilities (continued)

Other Like most commercial arrangements, discussions are being undertaken with the Franchisees regarding a range of contractual issues. Some of the claims and disputes previously submitted by the Franchisees were settled during the year (refer note 7).

Contingent liabilities relating to the Department as Bus Industry Representative The Secretary of the Department is a shareholder in the Revenue Clearing House Pty Ltd (‘RCH’) and VicTrip Pty Ltd as the appointed representative of route bus operators with whom the Department has a bus service contract.

The RCH Shareholders Agreement and the VicTrip Shareholders Agreement contain several clauses which mean that the State (along with the franchisees) will become liable for additional capital requirements for the RCH and VicTrip to remain solvent and any losses suffered by the RCH and VicTrip.

The MetCard Management Agreement with the RCH contains several clauses in the agreement which mean that the State (along with the franchisees) will become liable for any shortfalls suffered by the RCH in specific circumstances.

Melbourne City Link The key arrangements for Melbourne City Link are set out in the Concession Deed, which has effect from 20 October 1995.

Under the arrangements as set out in the Concession Deed and the legislation, the State is responsible for acquiring and paying for the land necessary for the project, paying for certain state works and general project costs. It is also subject to certain compensation claims in the event that it can be shown that Transurban’s revenue has been adversely affected by State actions.

There is currently an outstanding claim from Transurban relating to an alleged ‘Appendix Event’ and leading to a Material Adverse Effect claim from Transurban in relation to the construction of Wurundjeri Way and widening of the Westgate Freeway. The initial finding of an independent expert appointed under the terms of the Concession Deed was that the Transurban claim was not proved and accordingly he found for the State. As also allowed for under the Concession Deed however, Transurban has invoked the appeal process and has sought further independent assessment through arbitration. That process has now commenced and failing prior settlement is likely to take some time.

As regards to compensation for land acquisitions, some matters remain in the negotiation/determination phase in an effort to agree the ultimate level of compensation for the acquisitions.

Details and estimates of other contingent liabilities are as follows: 2002 2001 Quantified: $’000 $’000 Legal disputes 6,147 1,110 Personal injury 285 22 6,432 1,132 Unquantified: • Six claims relate to legal disputes that are yet to be quantified (2001 – eight claims).

• Three claims relate to personal injury cases that are yet to be quantified (2001 – seven claims).

• Two claims relates to equal opportunity cases that are yet to be quantified (2001 – one claim).

Department of Infrastructure Annual Report 2001–02 113 Notes to the financial statements for the year ended 30 June 2002

Note 26. Commitments for expenditure The following commitments have not been recognised as liabilities in the financial statements. 2002 2001 $’000 $’000

Capital and other related commitments Commitments contracted for at the reporting date but not recognised as liabilities, payable: Within one year 217,185 990 Later than one year but not later than 5 years 434,267 - Later than 5 years -- Capital commitments (inclusive of GST) 651,452 990 less: GST recoverable (54,943) (90) Capital commitments (exclusive of GST) 596,509 900

Included in the commitments above are projects undertaken by Major Projects Victoria for the following sponsor agencies (also see note 3)**:

2002 2001 $’000 $’000 Department of Premier and Cabinet 78,012 - Department of Tourism, Sport and the Commonwealth Games 1,706 - Department of Innovation, Industry and Regional Development 416 - Department of Human Services 13 - Infrastructure Portfolio 723 - Capital commitment (inclusive of GST) 80,870 - Less: GST recoverable (7,352) - Capital commitments (exclusive of GST) 73,518 -

** The functions of Major Projects Victoria were transferred back to the Secretary to the Department of Infrastructure on 5 March 2002. As such, commitments relating to Major Projects Victoria are reflected at year end.

114 Department of Infrastructure Annual Report 2001–02 Notes to the financial statements for the year ended 30 June 2002

Note 26. Commitments for expenditure (continued) 2002 2001 2001 $’000 $’000 $’000

Rail and bus commitments Non-discounted Non-discounted Discounted Commitments in relation to rail services contracted for at the reporting date but not recognised as liabilities, payable: Within one year 399,200 522,300 497,500 Later than one year but not later than 5 years 1,478,300 1,474,200 1,223,900 Later than 5 years 2,690,500 3,034,300 1,523,600 Rail commitments (inclusive of GST) 4,568,000 5,030,800 3,245,000 less: GST recoverable (415,300) (457,300) (295,000) Rail commitments (exclusive of GST) 4,152,700 4,573,500 2,950,000

Representing: Non-cancellable operating leases 4,152,700 4,573,500 2,950,000

Commitments in relation to bus services contracted for at the reporting date but not recognised as liabilities, payable: Within one year 482,822 419,300 404,700 Later than one year but not later than 5 years 2,175,170 1,749,100 1,545,500 Later than 5 years 584,702 1,123,300 873,300 Commitments (inclusive of GST) 3,242,694 3,291,700 2,823,500 less: GST recoverable (294,790) (299,245) (256,700) Bus commitments (exclusive of GST) 2,947,904 2,992,455 2,566,800

Representing: Non-cancellable operating leases 2,947,904 2,992,455 2,566,800

The Department has entered into a number of contracts with private operators for periods of up to 15 years to provide Victoria’s tram, train and bus services. Under the terms of these agreements, the Department will provide subsidies for transport services and capital commitments.

The estimates for rail and bus commitments were calculated as at 30 June 2002 based on contract estimates and are subject to movements in factors such as CPI changes under the contract (2002-3.14%; 2001-6.20%: impact of GST), patronage growth (2002-3.00%; 2001-3.00%), alterations to passenger services, timetables and regulated fares and other performance and eligibility criteria which may have a significant impact on the actual amount paid.

From the 2002 year, rail and bus commitments which the Government is obliged to pay under the current contract arrangements with the franchisees will reflect real non-discounted values.

Department of Infrastructure Annual Report 2001–02 115 Notes to the financial statements for the year ended 30 June 2002

Note 26. Commitments for expenditure (continued) Explanation of Rail Movements (exclusive of GST) (also refer note 1 (w)):

2002 2001 2002 2001 2001 $’000 $’000 $’000 $’000 $’000 Non-discounted Non-discounted Discounted Discounted Discounted (Adjusted) (Audited 2001) 4,152,700 4,573,500 3,254,200 3,551,900 2,950,000 (a) (b) (c) (d) (e)

In the 2001 year audited financial statements, the rail commitments included a best estimate of the Government’s commitments for rolling stock as whilst contractual commitments existed the rolling stock lease arrangements had not been finalised. As such column (d) reflects the adjustment for the difference between rolling stock cost estimates reported in 2001 (refer column (e)) and the actual lease arrangement costs which were finalised after 30 June 2001.

Column (c) has been included to show the 2002 ‘discounted’ values which would have been reported in 2002 if the reporting methodology had remained unchanged.

Columns (a) and (b) reflect the non-discounted movement of commitments between 2001 and 2002. In future only ‘non-discounted’ values will be reported.

The reduction in commitments between 2001 and 2002 relates to twelve months of payments made under existing contracts and other minor additional commitments including the settlement agreement amounts announced by the Government in February 2002.

Explanation of Bus Movements:

The reduction in commitments for bus service contracts reflects twelve months payments under existing contracts and additional services contracted during the year plus increased costs related to the bus replacement program.

2002 2001 Operating leases $’000 $’000 Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows: Within one year 8,776 7,510 Later than one year but not later than 5 years 28,208 26,798 Later than 5 years - 5,924 Commitments (inclusive of GST) 36,984 40,232 less: GST recoverable (3,358) (3,652) Commitments (exclusive of GST) 33,626 36,580

Future minimum lease payments expected to be received in relation to non-cancellable sub-leases of operating leases 452 3,073

116 Department of Infrastructure Annual Report 2001–02 Notes to the financial statements for the year ended 30 June 2002

Note 26. Commitments for expenditure (continued) 2002 2001 Outsourcing committments $’000 $’000 Commitments under outsourcing contracts at the reporting date but not recognised as liabilities, payable: Within one year 938 52 Later than one year but not later than 5 years 1,607 - Later than 5 years -- Commitments (inclusive of GST) 2,545 52 less: GST recoverable (231) (5) Commitments (exclusive of GST) 2,314* 47

* The increase relates to new contracts signed during the year for internal audit and information technology related services.

Note 27. Employee entitlements

Employee entitlement liabilities 2002 2001 Provision for employee entitlements $’000 $’000 Current (note 19) 6,761 5,534 Non-current (note 19) 11,734 10,102 Aggregate employee entitlement liability 18,495 15,636

Employee numbers No. No. Number of employees at reporting date 870 715

As explained in note 1(q)(ii), the amounts for long-service leave are measured at their present values. The following assumptions were adopted in measuring present values: 2002 2001 (a) Long -service leave $’000 $’000 Weighted average rates of increase in annual employee entitlements to settlement of the liabilities 6.90% 5.70% Weighted average discount rates 5.66% 5.77% Weighted average terms to settlement of the liabilities 15 years 15 years

Department of Infrastructure Annual Report 2001–02 117 Notes to the financial statements for the year ended 30 June 2002

Note 27. Employee entitlements (continued)

Government employees' superannuation funds No liability is recognised in the statement of financial position for the Department’s share of the State’s unfunded superannuation liability. The State’s 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 employee benefits in the statement of financial performance of the Department.

The name and details of the major employee superannuation funds and contributions made by the Department are as follows:

Contribution Contribution Contribution Contribution for the year for the year outstanding at outstanding at year end year end

Fund 2002 2001 2002 2001 $$ $$ State Superannuation Scheme – revised and new 1,918,275 1,854,101 - - Victorian Superannuation Fund 3,437,576 2,455,679 - - Victorian Water Superannuation Fund 131,772 204,413 43,283 - Transport Superannuation Fund 250,070 161,534 21,462 13,472 Various other 469,474 334,986 5,826 2,345 Total 6,207,167 5,010,713 70,571 15,817

The bases for contributions are determined by the various schemes.

All employees of the Department who are members of Government Superannuation Funds are entitled to benefits on retirement, disability or death. These Funds provide defined lump sum benefits based on years of service and final average salary. The above benefits are provided via either defined benefit schemes or accumulated fund schemes.

The above amounts were measured as at 30 June of each year, or in the case of employer contributions they relate to payments made for years ended 30 June.

There were no loans made by the Superannuation Funds to the Department during the year.

118 Department of Infrastructure Annual Report 2001–02 Notes to the financial statements for the year ended 30 June 2002

Note 28. Administered items In addition to the specific Departmental operations which are included in the Statement of Financial Position, Statement of Financial Performance and Statement of Cash Flows, the Department administers or manages activities on behalf of the State. The transactions relating to these State activities are reported as administered in this note. Administered transactions give rise to revenues, expenses, assets and liabilities and are determined on an accrual basis. Administered revenues included taxes, fees and fines and the proceeds from the sale of administered surplus land and buildings. Administered liabilities include government expenses incurred but not yet paid. Administered assets include government revenues earned but not yet collected.

The following provides brief details of Concession Fee Notes referred to in the Administered tables below:

Concession Fee Notes are received by the Department on behalf of the State from Transurban in consideration for Transurban’s obligation to pay concession fees. These Notes are accounted for in the manner normally applicable to such financial instruments, namely on a discounted basis to net present value as follows:

2002 2001 $’000 $’000 Face Value of Concession Fee Notes 604,854 - Less Discount for Future Value 475,833 - Present Value of Concession Fee Notes Receivable 129,021 -**

**Concession fee details were previously included in the financial statements of the former Melbourne City Link Authority (former MCLA)

A dispute exists between Transurban and the Australian Tax Office (ATO) on the treatment of deductibility of concession fees for tax purposes. In the event that Transurban is successful in its challenge, the present value of the Notes would be enhanced, and a reversal of the downward revision of the accounting estimate which occurred in 2001 would be required.

The value of the Concession Fee Notes in the 2001 financial statements of the former MCLA was based on a financial model used in prior years which determined both the projected encashment date and the present value of the Notes. A revised financial model was prepared in March 2002. That model and its assumptions have had considerable scrutiny by the debt market (including ratings agencies) as well as the Department’s advisers – who have conducted a review to confirm the accuracy and suitability of the model as an appropriate tool for preparing an Accounting Estimate. The Department has accordingly embraced that model as the best tool to predict the likely encashment date of the Notes – thereby ascribing a present value to the Notes.

Key assumptions of the revised financial model that have impacted the net present value of the Concession Fee Notes in 2002 are:

• Reduction in CPI used in the model from 4.0% to 2.5% p.a. • Revised overall traffic volumes as reflected in a revised traffic model prepared by consultants engaged by Transurban. • Application of interest rates reflecting the net benefit of the refinancing of debt undertaken by Transurban in June/July 2002. • Adjustments in expenses levels to better reflect Transurban’s actual costs together with actions it has taken to control those costs. The application of these key assumptions in the revised financial model results in an earlier estimated redemption date of June 2018 for the Concession Fee Notes, and consequently an increased discount value. Further, it assumes that the Notes will run their intended term – and be encashed when provided for under the terms of the Concession Deed and related documents.

Concession Fees were received as assets free of charge totalling $117.005 million from the former MCLA on 1 March 2002. Also, revenue totalling $12.016 million was recognised under the Concession Fee representing the change in the present value of the Concession Fee Notes during the reporting period (also refer note 4 (b)).

Department of Infrastructure Annual Report 2001–02 119 Notes to the financial statements for the year ended 30 June 2002

Note 28. Administered items (continued) Strategic Land Use Balanced Planning Supporting Local Ports and and Infrastructure and Environmental Government Intermodal Planning Systems Gateways 2002 2001 2002 2001 2002 2001 2002 2001 Administered revenue $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Appropriations - payments made on behalf of the State - - - - 10,198 9,719 - - Natural disaster funding - - - - 1,992 1,585 - - Commonwealth grants - - - - 325,978 311,425 - - Revenue from disposal of assets - - - 3,129 - - - - Interest income ------Fees and other income - - 815 7,090 - 2,001 1,661 2,764 Assets received free of charge ------Concession fees received free of charge (see previous page) ------Concession fee increment (see previous page) ------Total operating revenue - - 815 10,219 338,168 324,730 1,661 2,764

Administered expenses Payments made on behalf of the State - - - - 10,198 9,719 - - Natural disaster expenditure - - - - 1,992 1,585 - - Commonwealth grants on-passed to local government - - - - 325,978 311,425 - - Commonwealth grants paid into the consolidated fund ------Asset sale proceeds and other income paid into the consolidated fund - - 789 7,787 - 2,200 1,503 3,039 Assets transferred free of charge - - - 23,430 - 1,350 - - Loss on investments sold ------Total operating expenditure - - 789 31,217 338,168 326,279 1,503 3,039

Revenue less expenses - - 26 (20,998) - (1,549) 158 (275)

Administered assets Cash and receivables - - - - 8,097 5,212 - - Investments ------Concession fee notes receivable (see previous page) ------Total assets - - - - 8,097 5,212 - -

Administered liabilities Creditors and accruals - - - - 7,919 5,009 - - Amounts owing to other departments ------Total liabilities - - - - 7,919 5,009 - -

120 Department of Infrastructure Annual Report 2001–02 Notes to the financial statements for the year ended 30 June 2002

Note 28. Administered items (continued) Regional and Rural Regional and Rural Metro Transport Metropolitan Transport Safety and Total Transport Services Transport Services Transport Accessibility Infrastructure Infrastructure 2002 2001 2002 2001 2002 2001 2002 2001 2002 2001 2002 2001 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 ------10,198 9,719 ------1,992 1,585 - - 135,769 77,652 - - 121,144 21,678 10,477 11,517 593,368 422,272 ------(982) - - - (982) 3,129 - - - - (2) 55 - - - - (2) 55 - - - - 9,228 8,775 (109) - - - 11,595 20,630 24,576 - - - - - 16,420 - - - 40,996 ------117,005 - - - 117,005 ------12,016 - - - 12,016 - 24,576 - 135,769 77,652 9,226 8,830 265,494 21,678 10,477 11,517 786,186 457,390

------95 10,198 9,814 ------1,992 1,585 ------325,978 311,425 - - 135,769 77,652 - - 121,144 21,678 10,477 11,517 267,390 110,847

- - - - 8,939 9,653 - - - - 11,231 22,679 44,643 ------44,643 24,780 15,033 ------15,033 - 59,676 - 135,769 77,652 8,939 9,653 121,144 21,678 10,477 11,612 676,465481,130

(35,100) - - - 287 (823) 144,350 - - (95) 109,721 (23,740)

- - - - 8,751 3,803 15,048 - - - 31,896 9,015 - 35,100 ------35,100 ------129,021 - - - 129,021 - - 35,100 - - 8,751 3,803 144,069 - - - 160,917 44,115

- - - - 8,760 3,763 - - - - 16,679 8,772 - - - - 87,252 88,057 - - - - 87,252 88,057 - - - - 96,012 91,820 - - - - 103,931 96,829

Department of Infrastructure Annual Report 2001–02 121 Notes to the financial statements for the year ended 30 June 2002

Note 29. Ex gratia payments The Department made the following ex gratia payments: 2002 2001 $’000 $’000 Ex gratia payments 11 The ex gratia payment in the 2002 year relates to accidental damage to property.

Note 30. Reconciliation of the net result for the reporting period to net cash inflow from operating activities 2002 2001 $’000 $’000

Net result for the reporting period 55,279 74,722

Net cost from the disposal of non-current assets 148 95 Depreciation and amortisation 9,379 6,629 Assets transferred to other agencies 11,669 33,558 Write-down of assets to recoverable amount - 4,423

Change in operating assets and liabilities, net effects from restructuring: (Increase) / decrease in receivables and debtors (15,491) (49,706) Increase / (decrease) in payables and operating liabilities (8,549) 45,949 Increase / (decrease) in other provisions 1,614 769 (Increase) / decrease in prepayments 2 (602)

Net cash inflow/(outflow) from operating activities 54,051 115,837

Note 31. Non-cash financing and investing activities 2002 2001 $’000 $’000

Restructuring of administrative arrangements 350,330 14,981 350,330 14,981

Restructuring of administrative arrangements (see also note 4) During the reporting period, three administrative arrangement changes took place, resulting in non-cash assets and liabilities amounting to $474.705 million and $124.375 million respectively being transferred to the Department. These changes resulted in the former Marine Board of Victoria, the former Melbourne City Link Authority and the functions and responsibilities of Major Projects Victoria being incorporated within the Department of Infrastructure.

122 Department of Infrastructure Annual Report 2001–02 Appendixes

Department of Infrastructure Annual Report 2001–02 123 Output Performance Measures

Strategic Land Use and Infrastructure Planning These outputs involve the planned delivery of land use and infrastructure strategies aimed to improve the economic and social capacity of Victoria. Key elements include integrated transport planning linked to regional land use development, integrated metropolitan land use and transport planning, strategies for metropolitan and rural sub regions and development of a forward infrastructure investment strategy. They also include support and advice to the Infrastructure Planning Council.

Regional and Rural Strategies Produce land use and transport strategies for regional and rural Victoria by working collaboratively across government with other development agencies and consultatively with the community to develop planning frameworks, infrastructure priorities and implementation processes.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Rural and Regional Strategic Framework number 1 1 Regional land use and transport strategies number 1 1 Integrated transport strategy linked to regional and rural land use development number 1 1 Quality Projects completed against agreed plans and timeframes per cent 100 100 Timeliness Regional transport and land use strategies commenced date Jul-01 Jul-01 Cost Total output cost: $ million 1.8 2.0

Metropolitan Development Strategies Produce land use and transport strategies for the Melbourne metropolitan area by working collaboratively across government with other development agencies and consultatively with the community to develop planning frameworks, infrastructure priorities and implementation processes.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Long term metropolitan land use and transport strategy per cent stage complete 100 90 Travel demand management demonstration project number 1 0.9 Metropolitan sub-regional land use and transport strategies commenced number 2 1 Quality Projects completed against agreed plans and timeframes per cent 100 97.5 Cost Total output cost: $ million 4.5 4.6

124 Department of Infrastructure Annual Report 2001–02 Output Performance Measures

Port Development Strategies Develop, manage and monitor implementation of strategies and initiatives created to deliver government’s port policy goals. These services aim to improve the policy/regulatory framework for efficient and safe operation of ports and effective medium and long term transport logistics. In addition, land use planning ensures ongoing competitiveness of these critical trade gateways.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Port Policy Review per cent 100 100 Channels Assessment-Environmental Effects Statement per cent 50 * Quality Projects completed against agreed plans and timeframes per cent 100 100 Timeliness Port Policy Review date Dec-01 Dec-01 Cost Total output cost: $ million 1.6 2.2

* Significant work undertaken in developing the process. Approval to commence with an EES given but works not yet scoped

Research and Forecasting Information Research and analysis of the nature and impact of economic, social and environmental change to inform development of policy options relating to urban and regional planning development.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Research and analysis reports number 6 6 Timeliness Projects completed within agreed timeframes. per cent 100 100 Cost Total output cost: $ million 0.5 0.5

Department of Infrastructure Annual Report 2001–02 125 Output Performance Measures

Balanced Planning and Environmental System These outputs involve the provision of a world class planning system that supports development across the State in accordance with triple bottom line principles, and which is fair, transparent, accountable, cost effective and provides certainty to users. Partnerships between community, local government and business will also characterise the system.

Facilitation of residential, commercial and industrial developments, and the provision of urban design, heritage, environmental assessment services and programs.

Planning System Development Enhance Victoria’s land use, through the development of the planning system, including appropriate legislative, policy and statutory instruments. Provide approved development facilitation services. Provide reliable and authoritative advisory and support services to the Minister and users of the land use planning system.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Major development approvals facilitated number 5 19 Planning practice notes prepared number 4 9 Quality User satisfaction with training and development under the PLANET program per cent 75 95 Timeliness Effective training of practitioners and others in ResCode implementation date Dec-01 Dec-01 Approved amendments gazetted within 8 working days of approval per cent 80 100 Cost Total output cost: $ million 4.2 4.9

126 Department of Infrastructure Annual Report 2001–02 Output Performance Measures

Planning Operations and Environmental Assessment Provision of policy and strategic advice on the planning system. Administrative services to the Minister in her role as the responsible authority under the Planning and Environment Act 1987. Support services to State and Local Government for statutory planning functions. Provision of forecasting and monitoring information to the market on residential and industrial land supplies.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Planning Permits issued number 60 130 Amendments determined number 300 435 Property transactions assessed number 700 726 Planning certificates issued number 55 000 58 768 Briefings, assessments and issues number 1 000 1 034 Environment effects assessments number 4 6 Quality Property transactions comply with Government policy guidelines per cent 100 100 Accuracy of planning certificates per cent 100 100 Timeliness Permits issued within statutory timelines per cent 98 98 Planning certificates issued within three days per cent 98 98 Cost Total output cost: $ million 15.8 17.0

Department of Infrastructure Annual Report 2001–02 127 Output Performance Measures

Heritage Conservation Provision of heritage policy advice to Government and its agencies and delivery of statutory obligations as defined in the Heritage Act 1995, including collection and management of heritage data and its efficient delivery to the community. Establishment of strategic partnerships with local government to assist them to meet statutory heritage obligations, and promotion of good heritage asset management.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Heritage places assessed for Heritage Register number 200 103* Heritage Certificates issued number 4 000 5 131 Heritage permits and consents issued number 550 549 Quality Non-contested heritage place listings per cent 90 90 Appeals against permits and consents per cent <5 3 Timeliness Public owned heritage restoration projects completed against agreed budgets and timeframes per cent 100 100 Cost Total output cost: $ million 12.6 13.1

* Less than anticipated due to assessments being more complex and the discontinuation of special assessment projects.

128 Department of Infrastructure Annual Report 2001–02 Output Performance Measures

Regional and Urban Amenity Initiatives Facilitate transit orientated developments, Pride of Place and major civic projects. Provide urban design support for planning policy implementation, local government project initiatives, area improvement programs to deliver improvements in rural townships, and the property development industry through the enhancement of tools, processes, and practices.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Area Improvement community workshops number 7 5* Area improvement projects number 5 2* Transit orientated development projects facilitated number 5 8 Pride of Place projects facilitated number 25 47** Quality Stakeholder satisfaction with Pride of Place projects per cent 80 80 Timeliness Area improvement (five) workshops date Dec-01 Dec-01 Area improvement (five) projects proposed date May-02 * Pride of Place projects completed against agreed budgets and timeframes per cent 95 95 Cost Total output cost: $ million 12.6 14.0

* The Area Improvement program has been redesigned following consultation with other agencies and stakeholders, to focus on two targeted pilot projects in place of an open Expression of Interest process with five projects. ** Increased number of smaller projects approved

Department of Infrastructure Annual Report 2001–02 129 Output Performance Measures

Environmental Strategies and Initiatives Provide advice and support services on environmental assessment policies and processes and review related legislation and regulations. It delivers a statewide information service for local government, State agencies, industry and private sector users of the environmental and land use planning system. Also covered under this service is the marine pollution response capacity of Victoria for oil spills.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Production of guidelines for environmental assessment under the Planning and Environment Act and Environment Effects Act number 1 * Oil pollution response capability to react within 4 hours of reporting for small spills per cent 100 100 Noise barriers retro-fitted km 1.5 1 Quality Guidelines completed within agreed plans and timeframes date Jan-02 * Reported oil pollution incidents responded to and resolved per cent 100 100 Projects delivered in accordance with agreed scope and standards per cent 100 100 Timeliness Environment Effects Act guidelines issued date Jun-02 * Programmed works completed within agreed timeframes per cent 100 100 Cost Total output cost: $ million 5.6 6.9

* A technical paper has been prepared and circulated for comment.

130 Department of Infrastructure Annual Report 2001–02 Output Performance Measures

Supporting Local Government These outputs ensure that there is an effective and accountable system of local government, which is based on good governance, quality services, effective infrastructure, management and community accountability. Delivery of outputs, requires constructive intra-government relations and co ordination to deliver on common outcomes.

Local Government Sector Development Provide support for enhancing the performance of local government by building and sustaining an effective partnership between State and local government. Develop in consultation with the local government sector, initiatives aimed at ensuring best value and continuous improvement in service delivery, sustainability of infrastructure support, community accountability, performance measurement, and the ongoing monitoring of compliance with National Competition Policy (NCP) requirements.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Infrastructure Management Training Sessions number 7 1* Review of councils compliance with National Competition Policy per cent 78 78 Best Value principles implementation - Councils meet established requirements per cent 100 85** Quality Councils meet Performance Measurement and Management Reporting System requirements per cent 100 100 Councils complying with National Competition Policy requirements per cent 100 100 Meetings held by Best Value Commission with Councils number 6 6 Cost Total output cost: $ million 2.5 2.5

* Seven smaller sessions were replaced with one major summit ** 11 Councils did not return Best Value reports pending completion of service reviews

Department of Infrastructure Annual Report 2001–02 131 Output Performance Measures

Governance Support Provide support for monitoring and advice on good governance practices, electoral boundaries, institutional frameworks and legislation, including the effective administration of the Local Government Act 1989. Assist Local Government’s financial performance to ensure sound fiscal management.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Councils with properly structured and functioning audit committees per cent 100 98 Quality Legislative framework for the Local Government Act 1998 to agreed standards per cent 100 100 Timeliness Council annual reports lodged within statutory timeframes per cent 100 86 Cost Total output cost: $ million 2.0 2.6

Grants Funding for Public Libraries and Other Local Government Services Deliver support services to the Victoria Grants Commission to facilitate the allocation of general purpose grants and local road grants to Victorian councils and administer allocations from the Better Roads Victoria Trust for local road projects. Independently of the Commission administer the grants made for specialist programs delivering public library services, beach cleaning, interpreting and translation services.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Funding and service agreements for public library services reviewed and updated number 44 44 Funding administered for library construction or refurbishment: - Projects completed number 10 10 Implementation of beach cleaning best practice guidelines by councils per cent 75 * Road assistance grants announced number 25 25 Quality Stakeholder satisfaction with grants administration per cent 85 85 Timeliness Projects delivered in accordance with agreed scope and timelines per cent 100 100 Cost Total output cost: $ million 36.0 36.7

* This program was transferred to DNRE in 2001/02.

132 Department of Infrastructure Annual Report 2001–02 Output Performance Measures

Ports and Intermodal Gateways These outputs involve initiatives to improve the efficiency of the transport system by addressing the interfaces of different components of this multi facetted system. They cover the connections between ports, rail and road transport and airports in metropolitan, regional and rural Victoria.

Ports and Intermodal Freight Supply services to initiate, develop, manage and monitor a range of infrastructure strategies and projects designed to promote efficient seamless transfers between road, rail and sea modes and to reduce costs to shippers.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Dock Link Road extension construction project completed per cent 100 100 Victorian Sea Freight Industry Council (VSFIC) policy and initiatives number 3 3 Freight and Logistics Committee Projects completed number 4 4 Rail Access studies for the Melbourne and Geelong ports completed per cent 100 100 Quality Projects completed in accordance with agreed project specification per cent 100 100 Timeliness Port Rail Access Studies completed date Jun-02 Jun-02 Cost Total output cost: $ million 2.0 2.8

Department of Infrastructure Annual Report 2001–02 133 Output Performance Measures

Passenger Interchange Development Deliver improved accessibility and ease of use of road, rail, sea passengers, and air travel interchange facilities for the community that will encourage mobility and sustained growth in the utilisation of the State’s transport infrastructure by domestic and international travellers. This output is delivered through a combination of government and private operator resources.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Cruise ship visits number 23 31 Cruise ship passenger days number 38 700 46 900 Station Pier completion of Identified Works per cent 75 75 Approach to market for development proposals for Spencer Street Station project date Jul-01 Jul-01 Airport Transit Link study and implementation strategy completed per cent 100 100 Airport Transit Link - project scope assessment date Nov-01 Nov-01 Rural modal interchange upgrade program implementation per cent 60 60 Metropolitan modal interchange upgrade program implementation per cent 60 65 Quality Projects completed against agreed plans and timeframes per cent 100 100 Timeliness Station Pier Refurbishment - Station Pier sewer-water upgrade completed date Feb-02 Feb-02 Cost Total output cost: $ million 18.8 15.9

134 Department of Infrastructure Annual Report 2001–02 Output Performance Measures

Regional and Rural Transport Services These outputs involve the delivery of quality public transport services to regional and rural areas of Victoria through contractual arrangements with private operators. These services include intrastate and interstate rail services, route and school bus services. Contracts with private operators are managed to ensure that service provision is in accordance with contractually agreed standards and that committed investment levels for rolling stock and new buses are delivered.

Country/Interstate Rail Services Manage the contractual arrangements with private operators for the delivery of quality rail passenger and associated road coach services to regional and rural areas of Victoria. Contractual performance standards are reflected in the performance measures for the delivery of the output.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Total kilometres timetabled million 11 11.4 Services delivered per cent 99.5 99.7 Maintain freight gates for the provision of Fast Track and Charity Services number of locations 30 29 Quality Customer satisfaction threshold score 75 75.5 Services arriving at destination no more than 0.59 mins before and no less than 5.59 mins after timetable per cent 92 93.6 Passengers carried million 8.7 8.7 Rolling stock plans provided and agreed per cent 100 100 Number of claims against total Fast Track consignments per cent 0.4 0.3 Cost Total output cost: $ million 122.3 128.2

Department of Infrastructure Annual Report 2001–02 135 Output Performance Measures

Country Bus Services Manage the contractual arrangements with private operators for the delivery of bus services in accordance with the contractual service standards and implement initiatives for new rural bus services, air conditioning and lowering rural student fares to a statewide standard of 50 per cent of the adult fare.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Total kilometres timetabled million 17 17 Timetabled Bus Services delivered per cent 99 99 Quality Passengers carried million 11.5 11.5 Air conditioned buses in service per cent 16 16 Timeliness Services within 5 minutes of timetable per cent 95 95 Cost Total output cost: $ million 41.5 42.2

School Bus Services Manage the contractual arrangements with private operators for the delivery of bus services in accordance with the contract service standards and implement approved initiatives for School Bus Services including two way emergency communication, air conditioning on bus replacements, flashing lights, and first aid kits and training.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Kilometres scheduled million 33.4 33.4 Quality Timetabled bus services delivered per cent 99 99 Air-conditioned school buses in service per cent 10.6 12.2 School bus safety program delivered-interchange upgrade per cent 60 71 Safety Program-communications/flashing lights per cent 90 90 Timeliness Services within 5 minutes of timetable per cent 99 99 Cost Total output cost: $ million 125.0 127.5

136 Department of Infrastructure Annual Report 2001–02 Output Performance Measures

Regional and Rural Transport Infrastructure These outputs involve the development and maintenance of regional and rural transport networks by implementing major road projects, regional and rural rail projects and monitoring the quality of rail infrastructure as defined in the contracts with private operators. These facilitate the movement of goods and passengers in an efficient and timely manner.

Regional Public Transport Passenger and Freight Development Ensure delivery of the Government’s commitment to regional and rural transport infrastructure development and monitor the quality of rail infrastructure as set out in the contracts with the private operators.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Re-opening of Mildura, Bairnsdale, Ararat and Leongatha country rail lines project per cent 25 8 Fast Train Links number 1 1 Quality Track Ride Quality Index measured (passenger lines only) number 4 4 Timeliness Projects provided within agreed budgets and timeframes (where Govt. funded) per cent 100 100 Fast Rail Link approach to market date Jul-01 Jul-01 Cost Total output cost: $ million 32.3 26.0

Department of Infrastructure Annual Report 2001–02 137 Output Performance Measures

Major Regional Road Projects Reduce travel time, lower transport operating costs, and upgrade the quality of roads with respect to safety and increased access through improved road transport links and the completion of major highway projects to regional centres.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Projects continuing in 2001-02: number 4 4 - Geelong Road - Calder Highway (Carlsruhe) - Hume Highway (Albury-Wodonga Bypass) - Goulburn Valley Highway (Murchison East) Projects to be completed in 2001-02 number 1 1 - Calder Highway (Woodend Bypass) Projects commencing number 1 - Calder Highway (Kyneton-Faraday section) Quality Projects delivered in accordance with agreed scope and standards per cent 100 100 Timeliness Programmed works >$5m completed on time per cent 100 100 Cost Total output cost: $ million 65.0 65.9

138 Department of Infrastructure Annual Report 2001–02 Output Performance Measures

Regional Arterial Road Links Reduce travel time, lower transport operating costs, and upgrade the quality of roads with respect to safety, and increased access by adding new roads and paving, strengthening bridges, and intersection improvements and road realignment, completing regional arterial road projects and improving road transport links to regional and rural centres.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Road projects covering duplications and overtaking lanes - Projects completed km 12.1 9.6 - Projects commencing km 6.4 9.1 Bridge strengthening and replacement - Projects completed number 27 24 - Projects in progress number 5 5 - Projects commencing number 3 20 Pavement widening (including shoulders) - Projects completed km 43.3 54.4 - Projects in progress km 15 2 Road improvements (including intersections and realignments) - Projects in progress number 6 7 - Projects commencing number 22 45 Quality Projects delivered in accordance with the agreed scope and standards per cent 100 100 Timeliness Projects delivered in accordance with Government approved program per cent 100 100 Cost Total output cost: $ million 132.2 132.4

Department of Infrastructure Annual Report 2001–02 139 Output Performance Measures

Regional Road Network Maintenance Provision of maintenance for declared rural arterial roads, including pavement, bridges, roadside, and traffic facilitation components, covering routine and periodic maintenance, rehabilitation, and operational supervision of tasks/projects.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Road maintained lane km 40 160 40 107 Structures maintained number 3 740 3 744 Road resurfaced lane km 3 630 7 136 Road pavement rehabilitated lane km 390 387 Quality Projects delivered in accordance with agreed scope and standards per cent 100 100 Timeliness Programmed maintenance completed per cent 100 100 Cost Total output cost: $ million 151.3 151.6

Metropolitan Transport Services These outputs involve the delivery of a quality public transport service to the metropolitan area through contractual arrangements with private operators. These services include rail, tram and routed buses. Contracts with private operators are managed to ensure that service provision is in accordance with contractually agreed standards and that the committed investment levels for rolling stock and new buses is delivered.

Metropolitan Train Services Manage the contractual arrangements with private operators for the delivery of quality metropolitan train services. Contractual performance standards are reflected in the performance measures for the delivery of outputs.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Total kilometres timetabled million 16.6 16.6 Services delivered per cent 99.2 99.2 Quality Customer satisfaction index score 70.6 71.2 Passengers carried million 131.8 131.8 Services arriving at destination no more than 0.59 mins before and less than 5.59 mins after timetable per cent 96.2 96.2 Rolling stock plans provided and agreed per cent 100 100 Cost Total output cost: $ million 506.6 552.7

140 Department of Infrastructure Annual Report 2001–02 Output Performance Measures

Metropolitan Tram Services Manage the contractual arrangements with private operators for the delivery of quality metropolitan tram services. Contractual performance standards are reflected in the performance measures for the delivery of outputs.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Total kilometres timetabled million 22.5 21.6 Services delivered per cent 98.9 98.9 Quality Customer satisfaction index score 70.1 71.2 Passengers carried million 134.7 134.7 Services completing journey per cent 97.4 99.4 Services departing a monitoring point no more than 0.59 mins before and no less than 5.59 mins after timetable: - 2nd monitoring point per cent 93.8 94.8 - 2nd last monitoring point per cent 74.7 70.9 Rolling stock plans provided and agreed per cent 100 100 Cost Total output cost: $ million 261.4 289.1

Metropolitan Bus Services Manage the contractual arrangements with private operators for the delivery of quality metropolitan bus services in accordance with the contractual service standards and implementation of approved initiatives for new bus services, including new weekday evening and weekend Metropolitan bus services and air conditioning on bus replacements.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Kilometres scheduled million 70.4 70.4 Timetabled bus services delivered per cent 99 99 Quality Customer satisfaction index score 68 69 Passengers carried million 92.2 92.2 Air-conditioned and low floor route buses in service per cent 12.1 12 Timeliness Services within 5 minutes of timetable per cent 95 95 Cost Total output cost: $ million 241.2 246.9

Department of Infrastructure Annual Report 2001–02 141 Output Performance Measures

Metropolitan Transport Infrastructure and Public Development Projects These outputs involve the development and maintenance of metropolitan road networks and implementation of major civic and road projects, the management and delivery of major public construction and land development projects and development of metropolitan rail and tram infrastructure as set out in the contracts with the private operators. They provide major parts of the transport network in the metropolitan area and are aimed at facilitating the movement of goods and passengers in an efficient, timely and safe manner to their destinations.

Metropolitan Public Transport Development Provide enhanced transport networks planning capacity to ensure delivery of the Government’s commitment for metropolitan public transport infrastructure development and to monitor the quality of rail infrastructure as set out in the contracts with the private operators.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Franchise maintenance accounts funds fully allocated per cent 100 100 Quality Franchise maintenance asset plans provided and agreed number 4 4 Franchisee maintenance requirements in compliance with asset condition index targets number 4 4 Timeliness Feasibility studies within agreed timeframes and budgets per cent 100 100 Cost Total output cost: $ million 6.4 11.8

142 Department of Infrastructure Annual Report 2001–02 Output Performance Measures

Major Metropolitan Road Projects Deliver projects to improve the performance of Melbourne’s arterial road network by carrying out large scale projects addressing network discontinuities and bottlenecks aimed to improve access, decrease travel time, and reduce transport costs.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Projects continuing in 2001-02 number 4 5 - Geelong Road - Hallam Bypass - Eastern Freeway extension - Dingley Bypass (planning) Projects to commence number 1 1 - Eastern Freeway (park and ride) Quality Projects delivered in accordance with agreed scope and standards per cent 100 100 Timeliness Projects delivered in accordance with Government approved program per cent 100 100 Cost Total output cost: $ million 105.9 158.0

Department of Infrastructure Annual Report 2001–02 143 Output Performance Measures

Metropolitan Arterial Road Links Deliver projects to improve the performance of Melbourne’s arterial road network by carrying out projects addressing deficiencies and bottlenecks through the provision of new link roads and intersection improvements aimed at improving access, decreasing travel time, increasing residential amenity and reducing transport costs particularly in the outer suburbs.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Road projects covering duplications and overtaking lanes - Projects completed lane km 31 29 - Projects in progress lane km 45 45 Bridge Strengthening and replacement - Projects completed number 1 * - Projects commencing number 1 ** Pavement Widening (including shoulders) - Projects in progress km 9.5 *** Road improvements (including intersections and realignments) - Projects completed number 1 1 Quality Projects delivered in accordance with speed scope and standards per cent 100 100 Timeliness Projects delivered in accordance with Government approved program per cent 100 100 Cost Total output cost: $ million 161.9 129.9

* Bridge strengthening on the Westgate Fwy delayed due to technical problems relating to the strengthening technique ** Bridge strengthening not required on the Glenhuntly Rd (Elwood Canal) - strength adequate *** Pavement widening included in Major Metropolitan Road Projects - Cooper Street.

144 Department of Infrastructure Annual Report 2001–02 Output Performance Measures

Metropolitan Road Network Maintenance Provision of the annual maintenance program for declared metropolitan arterial roads, including pavement, bridges, roadside and traffic facility components, covering routine and periodic maintenance, rehabilitation and operational management tasks.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Road maintained lane km 10 460 10 455 Structures maintained number 1 235 1 227 Road resurfaced lane km 559 638 Road pavement rehabilitated lane km 80 84 Quality Projects delivered in accordance with the agreed scope and standards per cent 100 100 Timeliness Programmed maintenance completed per cent 100 100 Cost Total output cost: $ million 150.5 150.8

Department of Infrastructure Annual Report 2001–02 145 Output Performance Measures

Major Public Construction and Land Development Management and delivery of nominated public construction and land development projects, the coordination of development policies and associated feasibility studies.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Project Management - Beacon Cove (ongoing) number 1 1 Project feasibility studies conducted number 5 to 10 10 Hazardous Waste Siting - Public Consultation process commenced date Jun-02 Jun-02 - EOI Assessment Process commenced for soils date Jun-02 Jun-02 Timeliness Royal Melbourne Showgrounds - Facilities upgrade commenced date Jun-02 Jun-02 Bonegilla Migrant Settlement Centre - Scoping, design and tendering documentation finalised date Jun-02 Jun-02 Cost Total output cost: $ million - 2.3

146 Department of Infrastructure Annual Report 2001–02 Output Performance Measures

Transport Safety and Accessibility These outputs involve safety initiatives for road, public transport and waterway users. This is provided through the application of performance based standards to regulate transport providers, and to reduce cost of regulations on business, while raising safety and access levels for the community through improved transport regulation reform, education and prevention programs. The outputs include services to improve accessibility and subsidised taxi travel for the disabled.

Taxi, Hire Car and Tow Truck Regulation Administer, regulate and monitor taxi, hire car, special purpose vehicle, restricted hire cars, tow trucks and the driving instructor industry and ensure public transport safety standards are maintained and advanced through the implementation of new initiatives.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Taxis audited number 13 000 12 180 Tow truck licence transactions number 500 399 Tow truck driver authorities issued number 1 200 781 Commercial passenger vehicle licence applications processed number 350 340 Commercial passenger vehicle drivers certificates issued number 14 000 15 896 Driver instructor authorities processed number 450 549 Quality Taxis and tow trucks conform to quality standards per cent >94 91.8 Taxi service complaints investigated number 320 643 Tow Truck Allocation Centre calls answered within 45 seconds per cent 96 97 Timeliness Preliminary investigation of serious taxi service complaints completed within 10 working days per cent 88 86.5 Allocation of accident to tow truck depot within 5 minutes per cent 90 90 Cost Total output cost: $ million 2.4 2.4

Department of Infrastructure Annual Report 2001–02 147 Output Performance Measures

Accessible Transport Initiatives Provide access for the disabled to transport facilities by monitoring obligations under the Disability Discrimination Act, programs of the private operators and implementation of direct government funded initiatives. This includes the Multi Purpose Taxi Program of subsidised taxi services for the disabled.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Taxi trips - Passenger only number ('000) 5 372 5 654 - With wheelchair number ('000) 400 461 Applications assessed number 26 000 28 046 Customer phone enquiries number ('000) 75 74 Number of transport access sites treated number 260 284 Quality Projects delivered to agreed scope or standard per cent 100 100 Timeliness Applications completed within 10 working days per cent 96 96 Works completed within agreed timeframes per cent 100 93 Cost Total output cost: $ million 43.8 49.6

Accident Blackspots Deliver an agreed program of remedial actions to upgrade identified high accident black spot and black length areas of roads to reduce the cause of regular severe road accidents that have high social costs to the community.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Projects to be completed number 460 391* Quality Projects completed to agreed scope and standard per cent 100 85* Timeliness Programmed work to be completed in accordance with agreed timeframes per cent 100 85* Cost Total output cost: $ million 91.8 72.0

*The shortfall occurred mainly as a result of non-completion of projects under the management of local councils.

148 Department of Infrastructure Annual Report 2001–02 Output Performance Measures

Traffic and Road Use Management Improvements To provide and undertake low cost traffic improvement projects and services including traffic priority signalling and information services, incident management, and the administration of road freight regulatory reform for greater efficiency of freight movement.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Traffic management projects number 15 25 Road user improvement projects number 80 110 Quality Projects delivered in accordance with agreed scope and standards per cent 100 100 Timeliness Program works completed within agreed timeframes per cent 100 94 Cost Total output cost: $ million 23.0 22.9

Vehicle and Driver Regulation Provision of a vehicle registration and driver licensing service to provide a framework covering the integrity of the road user environment, ensuring the registration of trained drivers, road worthy vehicles, and the ability to easily trace missing vehicles.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity New driver licences issued number ('000) 103.3 106.5 Driver licences renewed number ('000) 473 480 New vehicle registrations issued number ('000) 425 449 Vehicle registrations renewed number ('000) 3 853 3 823 Vehicle registration transfers number ('000) 849 866 Vehicle and driver information requests processed number ('000) 1 541 1 507 Quality User satisfaction with registration and licensing per cent >90 90 Currency of registration and licensing records per cent >99 98 Timeliness Customers served within 10 minutes in licensing and registration offices per cent >80 74* Average time to answer central calls seconds <30 62* Cost Total output cost: $ million 77.9 78.1

* Delays caused as part of the implementation of the new driver licensing system.

Department of Infrastructure Annual Report 2001–02 149 Output Performance Measures

Road Safety Initiatives and Regulation Provision of a safety program that embraces two main areas, road user education and the upgrading of aspects of the road infrastructure system that have proved dangerous.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Road Safety Projects number 132 118 Quality Projects completed within specified scope and standards per cent 100 100 Timeliness Programmed works completed within agreed timeframes. per cent 100 100 Cost Total output cost: $ million 46.4 46.3

Public Transport Safety Initiatives and Regulation Maintain and advance public transport safety standards through the implementation of new initiatives and operator accreditation systems.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Safety initiatives - Unannounced audits number 120 120 - Bus mechanical inspections number 50 56 Quality Audit observations completed by issues being addressed per cent 90 95.7 Non conformances/compliances closed out within 2 months per cent 100 96 Material changes to accreditation processed within 2 weeks per cent 100 98 Timeliness Accreditation applications completed within 6 months per cent 100 100 Audits carried out: - Rail (within 12 months) per cent 100 100 - Bus (within 12 months) per cent 50 52 - Bus (within 24 months) per cent 100 na Follow up of critical defect notices within 5 days per cent 90 100 Review of responses of inquiry within 6 weeks per cent 90 100 Independent investigation reports completed within the timeframe defined in the Terms of Reference per cent 100 100 Cost Total output cost: $ million 4.6 4.3

150 Department of Infrastructure Annual Report 2001–02 Output Performance Measures

Marine Safety Initiatives and Regulation Develop and administer the policy/regulatory framework for the safe and efficient operation of commercial and recreational vessels in Victorian waters and implement a range of programs and initiatives designed to achieve the Government’s marine safety objectives. Facilitate the marine pollution response system and ballast water and hull fouling regime to prevent pests entering coastal waters.

Performance Measures Unit of 2001-02 2001-02 Measure Target Actual Quantity Vessel compliance with registration requirements per cent 100 100 All personal water craft operators and operators under 21 years licensed per cent 100 100 Audit compliance with Recreational Boating Regulations - Boats Audited per cent 5 4 - Waterways audited per cent 10 40 Commercial vessels surveyed number 1 500 1 428 Marine operators certificates issued number 300 414 Safety audits performed on commercial vessels number 165 123 Revised Marine Legislation per cent 100 100 Marine Safety Policy and Initiatives (Federal Government marine communication systems review) per cent 100 100 Quality Projects completed against statutory requirements and specifications per cent 95 95 Timeliness Recreational Boat Operator licensing starts date Feb-02 Feb-02 Capital Grant for Boating Safety Fund Program per cent 100 100 Marine Communications systems completed date Jun-02 Jun-02 Cost Total output cost: $ million 8.4 6.9

Department of Infrastructure Annual Report 2001–02 151 Legislation Administered as at 30 June 2002

As at 30 June 2002, the following Melbourne City Link Act 1995 legislation was administered by the The Act ratifies the Agreement between the State and Minister for Planning, the Minister for Transurban relating to the construction and operation of Transport, the Minister for Major the Melbourne City Link; gives the State certain powers in relation to land affected by the project; gives the Link Projects, the Minister for Ports and Corporation certain powers in relation to roads in the the Minister for Local Government. project area; and empowers the fixing, charging and collection of tolls in relation to the use of vehicles on Acts administered by the Minister for toll zones. Transport National Rail Corporation (Victoria) Act 1991 Border Railways Act 1922 This Act approves and gives effect to an agreement made This Act ratifies an agreement between the States of between the Commonwealth and the States of Victoria, Victoria and New South Wales as to the construction, New South Wales, Queensland and maintenance and operation of railway lines and the relating to the establishment and operation of the National construction and maintenance of bridges across the Rail Corporation Limited. Murray River. Public Transport Competition Act 1995 Chattel Securities Act 1987 This Act provides for the accreditation of passenger bus Part 3 (the remaining provisions are administered by the operators and implements a system of service contracts for Minister for Consumer Affairs). route service operations. This Act makes provision for security interests in motor vehicles, trailers and vessels, including registration of Rail Corporations Act 1996

interests. The main purpose of this Act is to establish Victorian Rail Track and certain passenger transport corporations and to Local Government Act 1989 provide for the transfer of property, rights and liabilities (Clauses 4 and 9(3) of Schedule 11 and section 123, in so to them. far as it relates to the revocation of local laws made pursuant to the powers conferred by those clauses by Road Safety Act 1986

reason of section 207 of the Act. The Act is otherwise This Act provides for the registration of motor vehicles, administered by the Minister for Local Government and the licensing of drivers, offences involving alcohol or other Attorney-General). drugs and other provisions regulating the operation and This Act provides generally for matters to do with local use of motor vehicles. government in Victoria. The provisions administered by the Ministers for Roads and for Ports relate to traffic control.

152 Department of Infrastructure Annual Report 2001–02 Legislation Administered as at 30 June 2002

Transport Act 1983 Acts administered by the Minister for This Act establishes and sets out the functions and powers Planning of DOI in relation to transport matters, the Public Transport Corporation and the Roads Corporation. The Act also Architects Act 1991 provides for the licensing of commercial vehicles and for The purposes of the Act are to: various offences. • provide for the registration of architects and the approval of architectural partnerships and architectural companies Very Fast Train (Route Investigation) Act 1989 • regulate the professional conduct of architects and The purpose of this Act is to facilitate the investigation of a provide a procedure for handling complaints against route for a very fast train linking Melbourne with other architects centres within or outside the State. • regulate the use of the words ‘architect’, ‘architecture’ Acts administered by the Minister for and ‘architectural’

Major Projects • establish the Architects Registration Board of Victoria.

Docklands Authority Act 1991 Bayside Project Act 1988 This Act establishes the powers and functions of the The purpose of this Act is to facilitate the development and Docklands Authority. use of certain land at Port Melbourne. Much of this Act was specific to the Sandridge development and has been Project Development and Construction repealed. Provisions of the Act that have been retained Management Act 1994 include provisions dealing with approval of plans of Part 5 (except to the extent that it relates to the exercise of subdivision, reclamation of land, allowing for reclaimed powers and functions under Part 9A of the Planning and land to be placed within a municipality, and allowing for Environment Act 1987), 5A and 8. (The remainder of the land to be revested in the Port of Melbourne Authority. Act is administered by the Premier, except Parts 4 and 7 and section 46, which are administered by the Minister for Building Act 1993

Planning). This Act, which came into operation on 1 July 1994, The Act facilitates the delivery of infrastructure projects and provides for the regulation of building and building establishes the Secretary to DOI as a body corporate. standards. The Act establishes the Building Commission, and facilitates the adoption of national uniform building standards and reforms aspects of legal liability for building matters. The Act also regulates building practitioners in order to provide for both private building surveyors and qualified municipal employees to issue building and occupancy permits.

Department of Infrastructure Annual Report 2001–02 153 Legislation Administered as at 30 June 2002

The Act also establishes the Plumbing Industry Commission Cultural and Recreational Lands Act 1963 to oversee the occupational regulation of plumbing. This Act provides for concessional rating for open space, Parts 5B and 5C are administered by the Minister for cultural and recreational land. Health. Environment Effects Act 1978

Casino Control Act 1991 The Act sets up a procedure whereby the potential Sections 128H to 128L (except for section 128K(2), which is environmental impacts of proposed developments which administered by the Minister for Finance). are likely to have significant environmental effects are assessed before decisions are made. The Act is primarily the responsibility of the Minister for Gaming. The Minister for Planning, however, administers Geelong Market Site Act 1983 provisions related to the acquisition of land, road closures and the development of Crown land for the purposes of The purpose of the Act is to allow the Greater Geelong City the Melbourne Casino. Council to redevelop the land known as the Geelong Market Site, either in its own right or in association with Chinatown Historic Precinct Act 1984 other persons, and to borrow money for that purpose.

(Jointly administered with the Minister for Major Projects Government Employee Housing Authority and Tourism). (Repeal) Act 1995 The purpose of the Act is to provide for the operation, management, development and promotion of Little Bourke Health Act 1958 Street between Exhibition Street and Swanston Street as Section 228 and Part XX where it relates to the operation the Chinatown Historic Precinct. The Act also establishes of section 228. the Chinatown Historic Precinct Committee. This Act is primarily administered by the Minister for Health Como Project Act 1994 and the Minister for Community Services, however, the Minister for Planning retains a provision providing a The main purposes of the Act are: capacity for the making of regulations regarding certain • to repeal the South Yarra Project Act 1984 buildings and premises. • to end the Agreement ratified by that Act Heritage Act 1995 • to amend the South Yarra Project (Subdivision and Management) Act 1985. This Act provides a framework for heritage protection and conservation in Victoria.

154 Department of Infrastructure Annual Report 2001–02 Legislation Administered as at 30 June 2002

Land (Goonawarra Golf Course) Act 1988 Project Development and Construction

This Act authorises the sale of the land known as the Management Act 1994 Goonawarra Golf Course to the Municipality of the Shire Parts 4, 5 (to the extent that it relates to the exercise of of Bulla. powers and functions under Part 9A of the Planning and Environment Act 1987) and section 46. The remainder of Nudity (Prescribed Areas) Act 1983 the Act is administered by the Premier and the Minister for This Act permits the establishment of optional-dress Major Projects. beaches in prescribed areas. The Act facilitates the delivery of infrastructure projects in which government is involved, and establishes new Planning and Environment Act 1987 provisions for arranging and managing public works. The purpose of the Act is to establish a framework for Important elements of the Act include the establishment of planning the use, development and protection of land in the Secretary to DOI as a body corporate, and provision for Victoria in the present and long-term interests of all the setting of standards and the issuing of directions in Victorians. It does this by establishing a system of planning relation to public construction. The Act also establishes the scheme controls and providing for them to be amended, Secretary to the Department of State and Regional administered and enforced. The Act also provides for Development as a body corporate. appeals to the Administrative Appeals Tribunal for compensation in certain circumstances for those who may Residential Tenancies Act 1997 be adversely affected by the operation of a planning Part 14 – Regulation of Caravan Parks and Movable scheme, and for necessary administrative arrangements. Dwellings being sections 512–527. The Act is otherwise administered by the Attorney-General, the Minister for Planning Authorities Repeal Act 1994 Housing and the Minister for Consumer Affairs. The main purposes of the Act are: Part 14 provides for the establishment of a registration • to provide for the winding up of the Loddon-Campaspe system and minimum standards for caravan parks. Regional Planning Authority and the Upper Yarra Valley The standards and registration of caravan parks are and Dandenong Ranges Authority administered by councils.

• to repeal the Acts which established these authorities Southgate Project Act 1994 • to provide for the continuation of the approved regional The Act facilitates the Southgate project by making special strategy plan made under the Upper Yarra Valley and provision for the subdivision, the integrated management Dandenong Ranges Authority Act 1976. of and the application of modified planning and building controls to the project land.

Department of Infrastructure Annual Report 2001–02 155 Legislation Administered as at 30 June 2002

South Yarra Project (Subdivision and Urban and Regional Land Corporation Act 1997

Management) Act 1985 The Act establishes the ULRC to develop residential and The purpose of the Act is to provide a legal structure for other land in Victoria on a commercial basis. the subdivision and management of certain land at South Yarra. Amendments in 1994 limited its operation to Stage 1 Minister for Local Government of the South Yarra project and made provision in relation to development contributions, rates and taxes in respect of City of Greater Geelong Act 1993 certain lands in that stage. Excluding Part 5, which is administered by the Minister for State and Regional Development. Subdivision Act 1988 This Act provides for the restructuring of certain councils in Except in so far as it relates to the management of the the Geelong region, the constitution of the City of Greater Office of the Registrar-General and the Land Titles Office – Geelong and the abolition of the Geelong Regional that part of the Act is administered by the Minister for Commission. Environment and Conservation.

The purposes of the Act are to set out the procedure for City of Melbourne Act 2001 the subdivision and consolidation of land, including This Act provided for the direct election of the Lord Mayor buildings and airspace, and for the creation, variation or of Melbourne and the Deputy Lord Mayor of Melbourne removal of easements or restrictions, and to regulate the and facilitates an early election of the members of the management of, and dealings with, common property and Melbourne City Council, as well as providing for greater the constitution and operation of bodies corporate. coordination between the Victorian Government and the council in relation to matters of significance to the State of The Act specifies the procedures for obtaining council Victoria. approval, service authority approval, and registration of a wide range of subdivisions in the Office of Titles, and Libraries Act 1988 contains power for the establishment and operation of bodies corporate. It combines subdivision procedures This Act is primarily the responsibility of the Minister for the previously included in the Strata Titles Act 1967, Cluster Arts. The Minister for Local Government however Titles Act 1974 and Local Government Act 1958, and administers Part 4, which relates to Library Purposes Trusts, provides for complex concepts such as staged development, and section 53 in so far as it relates to Part 4. multiple bodies corporate and variations to plans. Local Government Act 1989

Excluding sections 44-46, 48-49, and section 243 in so far as it relates to municipal electoral tribunals; and Schedule 4

156 Department of Infrastructure Annual Report 2001–02 Legislation Administered as at 30 June 2002 excluding Clause 1(b). These provisions are administered by Local Government (Darebin City Council) Act the Attorney-General. Also excluding clauses 4 and 9(3) of 1998 Schedule 11 and section 123 in so far as it relates to the The Act provides for the dismissal of the Darebin City revocation of local laws made pursuant to the powers Council and for arrangements for the election of new conferred by those clauses by reason of section 207. These councillors. provisions are administered by the Minister for Transport.

The Act provides administrative and legislative powers for Local Government (Nillumbik Shire Council) Act local government, outlines the broad purpose and 1998 functions of councils, provides for electoral processes, This Act provides for dismissal and election of councillors financial, accounting and rating arrangements, establishes for the Shire. the Local Government Board and provides for the restructuring of councils. The Act incorporates recent Municipal Association Act 1907 amendments relating to ‘designated positions’, Chief Executive Officers, competitive tendering, the dates of the This Act provides for the establishment of the Municipal municipal financial year, the dates of council elections, Association of Victoria as a statutory body corporate. regional corporations, rates and charges, audit arrangements, electoral arrangements, the size of councils, Municipalities Assistance Act 1973 the payment of allowances to councillors, probity This Act provides for the payment of moneys to councils in requirements of councillors, the annual reports, corporate relation to concessional rates for pensioners. plans and budgets of councils, declaration of rates, payment of rates by new owners, and a number of other Victoria Grants Commission Act 1976 measures to improve the effectiveness and efficiency of This Act establishes the Victoria Grants Commission to local government. distribute money allocated by the Commonwealth Grants Commission through the States to councils. 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.

Department of Infrastructure Annual Report 2001–02 157 Legislation Administered as at 30 June 2002

Acts administered by the Minister for Pollution of Waters by Oil and Noxious Ports Substances Act 1986 Sections 30 and 47 are jointly administered with the Crown Land (Reserves) Act 1978 Minister for Environment and Conservation. Excluding Only in so far as it relates to the land shown as Crown sections 8, 9, 10, 11, 12, 13, 18, 19, 20, 21, 22, 23, 23B, Allotment 18, section 12, City of Port Melbourne South, 23D, 23E, 23G, 23J, 23K, 23L, 24E which are administered original Plan No 119746A – Central Plan Office LA/32/0012, by the Minister for Environment and Conservation. known as Station Pier. This Act provides for the protection of the sea and other waters from pollution by oil and other noxious substances. Land Act 1958 In so far as it relates to the exercise of power relating to the Port Services Act 1995 leases and licences under Subdivisions 1 and 2 of Part 1 in Except for Sections 45-57, 59-63 and 119-123 which are respect of the land described as Allotment 18 of Section 12 administered by the Minister for Finance and Sections City of Port Melbourne, Parish of Melbourne South, being 25,27-29, 96, 99-108, 124-125 and all of Schedule 1 the land in Certified Plan No 119746 lodged in the Central (except clauses 4 and 6(1) and (2)) which are administered Plan Office of the Department of Natural Resources and by the Treasurer. Environment. This Act establishes the MPC, HPHC and the VCA. The Act is otherwise administered by the Minister for Environment and Conservation, the Attorney-General, the Westernport (Crib Point Terminal) Act 1963 Minister for Finance and the Minister for Corrections. This Act assists the development and operation of a Marine Act 1988 petroleum terminal at Crib Point by providing for certain existing and new easements, and clarifying the status of This Act establishes the Director of Marine Safety and existing agreements relating to the pipeline running from provides for the objects, powers and functions of the the terminal site to Dandenong. The Act also vests Crown Director. The Act also provides for registration of vessels, land used for port facilities near the terminal site in the Port regulation of the operation of vessels, offences involving of Melbourne Authority. (Note: this Act was formerly alcohol, prevention of pollution of State waters, the known as the Westernport (Oil Refinery) Act 1963). adoption of certain international conventions, enforcement of various offences through the issue of marine infringement notices and for other matters.

158 Department of Infrastructure Annual Report 2001–02 Legislation Administered as at 30 June 2002

Acts passed during 2001–02

Minister for Transport

Rail Corporations (Amendment) Act 2002

Road Safety (Alcohol Interlocks) Act 2002

Road Safety (Further Amendment) Act 2001

Transport (Alcohol and Drug Controls) Act 2001

Transport (Further Amendment) Act 2001

Transport (Further Miscellaneous Amendments) Act 2002

Minister for Planning

Building (Amendment) Act 2001

Building and Construction Industry Security of Payment Act 2002

Minister for Ports

Marine (Further Amendment) Act 2001

Marine (Hire and Drive Vessels) Act 2001

Marine Safety Legislation (Lakes Hume and Mulwala) Act 2001

Minister for Local Government

No Acts passed during 2001–02.

Department of Infrastructure Annual Report 2001–02 159 Budget Portfolio Outcomes

The Budget Portfolio Outcomes statements are prepared in order to provide a means of comparative analysis between the actual financial performance of all entities within the portfolio with the forecasts published in Budget Paper No. 3 ‘Budget Estimates’.

The Budget Portfolio Outcomes statements are prepared on a consolidated basis. Entities are consolidated within a budget portfolio when 50 per cent or more of their funding is received through appropriations and which are directly accountable through Ministers to Parliament.

Budget Portfolio Outcomes statements are not prepared on the same basis as DOI’s financial report and are not subject to audit by the Victorian Auditor-General’s Office.

The entities in the Budget Portfolio Outcomes statements in this appendix include:

Department of Infrastructure

VicRoads

Heritage Council Victoria

Melbourne City Link Authority (prior to its transfer to DOI from 1 March 2002)

Marine Board of Victoria (prior to its transfer to DOI from 7 February 2002)

160 Department of Infrastructure Annual Report 2001–02 Budget Portfolio Outcomes

Statement of Financial Performance

($ million) 2001–02 2001–02 Variation Variation Budget Actual % $

Revenue from ordinary activities Output appropriations 2,110.8 2,406.1 14.0 295.3 Resources received free of charge 0.0 111.7 0.0 111.7 Sale of goods and services 99.6 117.3 17.7 17.7 Commonwealth grants 245.0 0.1 -100.0 -245.0 Other grants 0.0 77.0 0.0 77.0 Taxes 45.0 107.1 138.0 62.1 Fines 4.6 2.0 -57.4 -2.6 Other revenue and other revenue from other parties 125.2 -93.8 -174.9 -219.0 2,630.2 2,727.4 3.7 97.2

Expenses from ordinary activities Employee entitlements 219.9 199.4 -9.3 -20.5 Depreciation and amortisation 236.2 242.7 2.8 6.5 Resources provided free of charge 0.0 11.8 0.0 11.8 Grants and other payments 573.1 641.9 12.0 68.8 Capital asset charge 84.0 69.4 -17.4 -14.6 Supplies and services 1,400.8 1,452.9 3.7 52.1 Other Expenses from ordinary activities 0.0 0.2 0.0 0.2 Borrowing costs 8.2 5.6 -31.6 -2.6 2,522.2 2,623.8 4.0 101.6 Result from ordinary activities 108.0 103.5 -4.1 -4.5 Loss from extraordinary items Net Result for the reporting period 108.0 103.5 -4.1 -4.5 Net increase in asset revaluation reserve Total revenues, expenses and revaluations recognised directly in equity 0.0 0.0 0.0 0.0 Total changes in equity other than those resulting from transactions with Victorian State Government in its capacity as owner 108.0 103.5 -4.1 -4.5

Department of Infrastructure Annual Report 2001–02 161 Budget Portfolio Outcomes

Statement of Financial Position

($ million) 2001–02 2001–02 Variation Variation Budget Actual % $

Current assets Cash Assets 181.8 85.7 -52.8 -96.1 Other financial assets 37.2 35.0 -6.0 -2.2 Receivables 54.0 70.9 31.3 16.9 Inventories 6.5 7.4 13.7 0.9 Prepayments 2.9 2.9 0.3 0.0 Total current assets 282.4 201.9 -28.5 -80.5

Non-current assets Receivables 167.3 332.9 99.0 165.6 Inventories - 5.4 0.0 5.4 Other financial assets 3,422.6 3,550.6 3.7 128.0 Property, plant and equipment 12,462.0 13,040.3 4.6 578.3 Intangible assets 8.0 10.4 29.9 2.4 Other 0.3 0.3 13.3 0.0 Total non-current assets 16,060.2 16,939.8 5.5 879.6 Total assets 16,342.6 17,141.7 4.9 799.1

Current Liabilites Payables 278.3 297.0 6.7 18.7 Provisions 58.9 56.2 -4.7 -2.7 Other 22.3 20.3 -9.1 -2.0 Total current liabilities 359.5 373.4 3.9 13.9

Non-current liabilities Interest bearing liabilities 66.1 - -100.0 -66.1 Provisions 466.5 441.0 -5.5 -25.5 Other 0.5 1.4 174.0 0.9 Total non-current liabilities 533.1 442.3 -17.0 -90.8 Total liabilities 892.6 815.8 -8.6 -76.8

Equity Contributed capital 14,561.4 14,618.7 0.4 57.3 Reserves 1,238.4 2,192.5 77.0 954.1 Accumulated surplus -349.8 -485.3 38.7 -135.5 Total equity 15,450.0 16,325.9 13.0 875.9

162 Department of Infrastructure Annual Report 2001–02 Budget Portfolio Outcomes

Statement of Cash Flows

($ million) 2001–02 2001–02 Variation Variation Budget Actual % $ Cash flows from operating activities Receipts from Government 2,356.0 2,330.1 -1 -25.9 Receipts from other entities 210.1 327.5 56 117.4 Payments for supplies, grants and employees -2,173.4 -2,348.7 8 -175.3

392.7 308.9 -21 -83.8 Interest received 0.5 2.9 470 2.4 Other revenue 50.2 27.3 -46 -22.9 Capital asset charge -84.0 -69.4 -17 14.6 Borrowing cost expenses -8.2 -5.6 -32 2.6

Net cash inflow from operating activities 351.2 264.1 -25 -87.1

Cash flow from investing activities Payments for property, plant and equipment -564.3 -355.1 -37 209.2 Proceeds from sale of property, plant and equipment - 9.3 0 9.3 (Repayments of) loans by other entities - 2.4 0 2.4 Net cash outflow from investing activities -564.3 -343.3 -39 221.0

Cash flow from financing activities Net proceeds from capital contribution by State Government 214.6 139.7 -35 -74.9 Net cash flows from Financing activities 214.6 139.7 -35 -74.9 Net cash increase (decrease) in cash held 1.5 60.4 na 58.9 Cash at the beginning of the financial year 180.3 25.3 -86 -155.0 Cash held at the end of the financial year 181.8 85.7 -53 -96.1

Department of Infrastructure Annual Report 2001–02 163 Budget Portfolio Outcomes

Administered Items Statement

($ million) 2001–02 2001–02 Variation Variation Budget Actual % $

Administered revenue Appropriations - Payments made on behalf of the State 11.4 10.2 -11 -1.2 Resources received free of charge - 41.0 0 41.0 Sale of goods and services 3.3 2.0 -38 -1.3 Commonwealth grants 321.9 593.4 84 271.5 Taxes 819.8 874.5 7 54.7 Fines 3.5 5.0 43 1.5 Fees 10.7 9.9 -8 -0.8 Other 2.5 111.7 4369 109.2 Total administered revenue 1,173.1 1,647.7 40 474.6

Administered expenses Expenses on behalf of the State 1.4 - -100 -1.4 Resources provided free of charge - 44.6 0 44.6 Grants and other payments 332.0 338.2 2 6.2 Payments into the Consolidated Fund 840.1 1,155.2 38 315.1 Total administered expenses 1,173.5 1,538.0 31 364.5 Revenue less expenses -0.4 109.7 na 110.1 Total Administered Entities -0.4 109.7 na 110.1

Administered assets Cash assets 6.5 7.8 19 1.3 Receivables 3.9 155.0 na 151.1 Other financial assets 35.1 - -100 -35.1 Property, plant and equipment -0.1 - -100 0.1 Total administered assets 45.4 162.7 259 117.4

Administered Liabilities Payables 5.3 8.8 67 3.5 Non Current Interest Bearing Liabilities - - 0 - Other 93.1 97.0 4 3.9 Total Administered Liabilities 98.4 105.7 8 7.4

164 Department of Infrastructure Annual Report 2001–02 Staff profile

To improve the reporting of staff numbers, this year DOI has included staff who were on Leave Without Pay at the reporting date. Previously these staff members (24 this year) have been excluded from Staff Profile reports. The change has been made to ensure consistency with the staff numbers reported in the Financial Statements.

Staff profile as at 30 June 2002

Variation Variation Variation from from from Actual previous Actual previous Actual previous FTE Class Male year Female year Total year Total EO-1 1 0 0 0 1 0 1.0 EO-2 20 6 3 0 23 6 23.0 EO-3 31 5 12 3 43 8 43.0 VPS5 129 25 67 16 196 41 193.3 VPS4 108 26 92 30 200 56 192.9 VPS3 123 1 98 14 221 15 215.8 VPS2 52 10 109 17 161 27 155.9 VPS1 10 2 15 0 25 2 22.7 Total staff 474 75 396 80 870 155 847.5

Executive positions reconciliation

2002 2001 Executives with remuneration more than $100,000 53 44 Add Executives employed with total remuneration below $100,000 19 22 Total as per Financial Statements 72 66

Add Vacancies 10 4 Accountable Officer 1 1 Less Separations -6 -9 Total executive positions at 30 June 2002 77 62

Executives as at 30 June 2002

Continuing executives Special projects Total

Male Variation Female Variation Vacancy Variation Male Variation Female Variation Vacancy Variation Class No from No from No from No from No from No from previous previous previous previous previous previous year year year year year year Total EO-1 1 1 2 EO-2 17 2 2 -5 2 1 1 25 EO-3 29 10 -9 3 2 6 50 Total 47 0 12 0 3 -14 5 3 7 77

Department of Infrastructure Annual Report 2001–02 165 Statutory Authorities Executive Numbers

Agency executives at 30 June 2002

Building Commission

Continuing executives Short-term or project roles Totals

Variation Variation Variation Variation Variation Variation Variation from from from from from from from previous previous previous previous previous previous Grand previous Class Male year Female year Total year Male year Female year Total year Total year Executives employed 5 +2 2 +2 7 +4 0 -2 0 -1 0 -3 7 +1 Vacancies being filled 0 -1 0 0 0 -1 Total staff 5 +2 2 +2 7 +3 0 -2 0 -1 0 -3 7 0

Melbourne Port Corporation

Continuing executives Short-term or project roles Totals

Variation Variation Variation Variation Variation Variation Variation from from from from from from from previous previous previous previous previous previous Grand previous Class Male year Female year Total year Male year Female year Total year Total year Executives employed 11 +3 2 -1 13 +2 0 -1 0 0 0 -1 13 +1 Vacancies being filled 0 -1 0 0 0 -1 Total staff 11 +3 2 -1 13 +1 0 -1 0 0 0 -1 13 0

Plumbing Industry Commission

Continuing executives Short-term or project roles Totals

Variation Variation Variation Variation Variation Variation Variation from from from from from from from previous previous previous previous previous previous Grand previous Class Male year Female year Total year Male year Female year Total year Total year Executives employed 0 -4 0 0 0 -4 0 0 0 0 0 0 0 -4 Vacancies being filled 1 +1 1 +1 Total staff 0 -4 0 0 1 -3 0 0 0 0 0 0 1 -3

Spencer Street Station Authority

Continuing executives Short-term or project roles Totals

Variation Variation Variation Variation Variation Variation Variation from from from from from from from previous previous previous previous previous previous Grand previous Class Male year Female year Total year Male year Female year Total year Total year Executives employed 0 0 1 +1 1 +1 0 0 0 0 0 0 1 +1 Vacancies being filled Total staff 0 0 1 +1 1 +1 0 0 0 0 0 0 1 +1

166 Department of Infrastructure Annual Report 2001–02 Statutory Authorities Executive Numbers

Public Transport Corporation

Continuing executives Short-term or project roles Totals

Variation Variation Variation Variation Variation Variation Variation from from from from from from from previous previous previous previous previous previous Grand previous Class Male year Female year Total year Male year Female year Total year Total year Executives employed 2 0 0 0 2 0 1 +1 0 0 1 1 3 +1 Vacancies being filled 0 Total staff 2 0 0 0 2 0 1 +1 0 0 1 1 3 +1

Urban and Regional Land Corporation

Continuing executives Short-term or project roles Totals

Variation Variation Variation Variation Variation Variation Variation from from from from from from from previous previous previous previous previous previous Grand previous Class Male year Female year Total year Male year Female year Total year Total year Executives employed 5 0 0 0 5 0 0 0 0 0 0 0 5 0 Vacancies being filled 1 0 1 0 Total staff 5 0 0 0 6 0 0 0 0 0 0 0 6 0

VicRoads

Continuing executives Short-term or project roles Totals

Variation Variation Variation Variation Variation Variation Variation from from from from from from from previous previous previous previous previous previous Grand previous Class Male year Female year Total year Male year Female year Total year Total year Executives employed 54 -1 8 +2 62 +1 0 -1 0 0 0 -1 62 0 Vacancies being filled 2 +1 2 +1 Total staff 54 -1 8 +2 64 +2 0 -1 0 0 0 -1 64 +1

Victorian Channels Authority

Continuing executives Short-term or project roles Totals

Variation Variation Variation Variation Variation Variation Variation from from from from from from from previous previous previous previous previous previous Grand previous Class Male year Female year Total year Male year Female year Total year Total year Executives employed 3 -1 0 0 3 -1 0 0 0 0 0 0 3 -1 Vacancies being filled 1+11+1 Total staff 3 -1 0 0 3 -1 0 0 0 0 0 0 4 0

Department of Infrastructure Annual Report 2001–02 167 Statutory Authorities Executive Numbers

VicTrack Access

Continuing executives Short-term or project roles Totals

Variation Variation Variation Variation Variation Variation Variation from from from from from from from previous previous previous previous previous previous Grand previous Class Male year Female year Total year Male year Female year Total year Total year Executives employed 4 0 0 0 4 0 0 0 0 0 0 0 4 0 Vacancies being filled 0 0 1 0 1 0 Total staff 4 0 0 0 5 0 0 0 0 0 0 0 5 0

Docklands Authority (Refer Note 3)

Continuing executives Short-term or project roles Totals

Variation Variation Variation Variation Variation Variation Variation from from from from from from from previous previous previous previous previous previous Grand previous Class Male year Female year Total year Male year Female year Total year Total year Executives employed 9 2 11 11 0 0 0 11 11 Vacancies being filled 3 3 3 3 Total staff 9 2 14 14 0 0 0 14 14

Marine Board of Victoria (Refer Note 1)

Continuing executives Short-term or project roles Totals

Variation Variation Variation Variation Variation Variation Variation from from from from from from from previous previous previous previous previous previous Grand previous Class Male year Female year Total year Male year Female year Total year Total year Executives employed 0 -3 0 0 -3 -3 0 0 0 0 -3 Vacancies being filled Total staff 0 -3 0 0 -3 -3 0 0 0 0 -3

Melbourne City Link Authority (refer Note 2)

Continuing executives Short-term or project roles Totals

Variation Variation Variation Variation Variation Variation Variation from from from from from from from previous previous previous previous previous previous Grand previous Class Male year Female year Total year Male year Female year Total year Total year Executives employed 0 -6 0 -2 0 -8 0 0 0 0 -8 Vacancies being filled Total staff 0 -6 0 -2 0 -8 0 0 0 0 -8

168 Department of Infrastructure Annual Report 2001–02 Statutory Authorities Executive Numbers

Total Executive – Department of Infrastructure Statutory Authorities as at 30 June 2002

Continuing executives Short-term or project roles Totals

Variation Variation Variation Variation Variation Variation Variation from from from from from from from previous previous previous previous previous previous Grand previous Class Male year Female year Total year Male year Female year Total year Total year Executives employed 93 -1 15 +4 108 +3 1 -3 0 -1 1 -4 109 -1 Vacancies being filled 8 +3 1 1 9 +4 Total staff 93 -1 15 +4 116 +6 1 -3 0 -1 2 -3 118 +3

NOTES:

(1) Marine Board of Victoria who were separate last year are now part of core DOI. These three executives are included in envelope for DOI.

(2) Melbourne City Link Authority who were separate last year are now part of core DOI. Five of these executives are now included in envelope for DOI. (3) *Docklands Authority not reported last year as part of DOI Agency numbers therefore variation figures not provided.

Department of Infrastructure Annual Report 2001–02 169 Industrial Relations

DOI has successfully fostered a partnership between itself, DOI’s Antidiscrimination Policy and Guidelines ensure that its agencies, the Government and unions based on a all employment decisions are based on merit. Merit and consultative approach to workplace relations. equity principles are enshrined in the DOI Recruitment Policy and Guidelines. Nil time was lost through industrial disputes. The Staff Consultative Committee continues to be a forum for All DOI People Management policies are available online to encouraging and promoting workplace relations based on staff and are made available to new staff as part of their communication and cooperation. The committee provides induction. DOI has an online performance planning system staff with opportunities and avenues for the identification to assist individual staff with performance work plan and ongoing discussion of workplace issues. The committee development and to ensure work plans are relevant and in meets monthly, has been successful in highlighting and line with business objectives. resolving issues of concern for staff and has been effective in informing health and safety and other workplace Occupational Health and Safety Reporting strategies. DOI is committed to a proactive approach in managing the health and well-being of staff and ensuring that exposure Reviewing personal grievances to risks are minimised. DOI’s Grievance Policy ensures that staff have an avenue for DOI has a wide range of occupational health and safety redress against treatment they see as unfair or (OH&S) policies and procedures in place, underpinning its unreasonable. The Employee Relations Branch continues to commitment to OH&S. This has ensured that there were no work proactively in resolving workplace issues as they arise major health and safety incidents for the year. and without the need for formal grievance. DOI conducted a successful program of activities during Upholding public conduct: managing and valuing OH&S Week. The theme for the week was ‘Balance’, which diversity: selecting on merit acknowledges the importance of balancing work and life DOI core organisational values include that we value our priorities, balanced diet and striking a balance between people’s diversity and respect each other’s diverse stress management, relaxation and exercise. A number of knowledge, skill and abilities. DOI’s Ethics at Work and healthy living seminars were conducted over the week to Managing Diversity policies and the Public Sector Code of provide staff with information and advice for promoting Conduct are integral to the way DOI staff conduct business. healthy living all year round. DOI employees regularly use the suite of flexible workplace Regular hazard audits of DOI workplaces were conducted programs and policies and there is explicit over the year to ensure staff are not being exposed to acknowledgement of the need for individuals to balance unnecessary risks in the office. A program of vision testing work and personal priorities. was provided to staff using screen-based equipment and all In DOI, we aim to create an organisational culture in which first-aiders were provided with the opportunity to there is tolerance, acceptance and awareness of cultural undertake refresher training in cardiopulmonary diversity. DOI participates in community initiatives and resuscitation. celebrations of culture such as NAIDOC Week and Harmony Evacuation and emergency procedures were reviewed and Day and has made a firm to commitment to the prevention improved and fire wardens provided with refresher training of racial and religious intolerance and vilification. following the issue being raised by the Staff Consultative Committee.

170 Department of Infrastructure Annual Report 2001–02 Industrial Relations

A total of nine WorkCover claims were accepted for 2001–02. DOI has worked closely with a new insurer to ensure effective occupational rehabilitation and risk management strategies are developed to meet the new legislative requirements effective from 1 July 2002. DOI’s Implementation Plan under the whole-of-government WorkCover Improvement Strategy has provided a focus for future improvements to health and safety systems in DOI.

DOI’s Employee Assistance Program has been utilised by staff over the year and is considered an effective early intervention strategy that has contributed to reducing stress claims and addressing other workplace issues.

Freedom of Information

The Freedom of Information Act 1982 gives the public a right of access to documents held by government departments.

For the period 2001–02, DOI received 386 applications. Of these requests, 142 were from Members of Parliament and the remainder was from the general public. Of the total requests received by DOI, 37 went to Internal Review, with six progressing to the appeal stage at the Victorian Civil and Administrative Tribunal.

Access to documents (as defined in section 5 of the Act) may only be obtained through written request as detailed in section 17 of the Freedom of Information Act 1982, addressed to:

Freedom of Information Officer Department of Infrastructure Level 14 Nauru House 80 Collins Street Melbourne, Victoria 3000 Telephone (03) 9655 6380 Email: [email protected]

Department of Infrastructure Annual Report 2001–02 171 Multicultural Performance Report

DOI is committed to respecting cultural diversity in the DOI has also established an Indigenous Employment workplace, and in all its dealings with stakeholders and the Strategy, which has been endorsed by Cabinet and will be community. DOI has strategies in place to ensure that: implemented under a whole-of-government agreement. diversity within the workplace is valued and actively In addition to the policies and guidelines outlined above, managed; information is made available to its stakeholders DOI plans to institute a range of human resource initiatives in a variety of ways and in culturally appropriate languages; throughout 2002–03 to further support and foster a and appropriate consultation is undertaken on project culturally diverse workplace. These include: delivery issues. • analysing workforce profile statistics Listed below are the policies and initiatives that are • analysing employee survey for feedback on diversity currently in place in DOI, and those that are planned, to related issues support and foster cultural diversity. • measuring and monitoring established employment Background targets The Government’s Multicultural Policy outlines the • reviewing Grievance and anecdotal Performance foundations for supporting Victoria’s diverse community Management issues to ascertain issues perceived as and promoting a socially cohesive society though: arising from intolerance of difference • analysing issues taken by individuals to tribunals such as • valuing diversity: promoting tolerance and harmony Victorian Civil and Administrative Tribunal, Australian • overcoming disadvantage: ensuring that all Victorians Industrial Relations Tribunal and the Human Rights and can access government services and programs without Equal Opportunity Commission relating to intolerance undue impediment of difference • encouraging participation: promoting representation • reviewing recruitment policy and practice. from members of ethnic communities in social Diversity and Cultural Awareness Training by specialist institutions and processes providers will be offered to targeted groups within DOI in • promoting economic, social and cultural benefits for all 2002–03, and further information and education relating Victorians: identifying the economic benefits accruing to the provisions of the Racial and Religious Tolerance Act from cultural diversity. will also be made available to staff and managers. Valuing diversity – current and planned initiatives Performance indicators Performance indicators are currently being developed. Human Resource policies and strategies They are likely to include the delivery of diversity and DOI is committed to achieving and supporting a diverse cultural awareness programs, the monitoring of complaints cultural workforce that reflects the community and its relating to discrimination and racial and religious tolerance, stakeholders. DOI has in place a range of Human Resources any official complaints of discriminatory or vilificatory policies, guidelines and strategies to foster and support behaviour not being upheld, and appropriate recruitment diversity in the workplace. These policies ensure the practices to support the Indigenous Employment Strategy. provision of equal employment opportunities in DOI for all Victorians, regardless of gender, culture, religious Overcoming disadvantage – current and background or other differences. They facilitate the creation planned initiatives and maintenance of an organisational culture of awareness, Local Government Language Services program acceptance and respect of diversity. Through DOI’s Local Government Division, the Victorian Government provides specific assistance to councils for the

172 Department of Infrastructure Annual Report 2001–02 Multicultural Performance Report

provision of interpreting and translation services. • basic interpreter contact information will be provided in This funding is designed to improve access to local several languages in printed customer service charter government services and information for people who have brochures a low level of proficiency in English, by assisting councils in • customer service charter brochures translated into more meeting the cost of purchasing language services. than 12 languages will be available on request.

Until mid 2001, the Local Government Language Services Languages in which the brochures are available include: Program operated on a ‘line of credit’ basis. Individual Arabic, Croatian, French, Italian, Japanese, Macedonian, councils were provided with interpreting and translation Maltese, Mandarin, Polish, Siberian, Spanish, Turkish and services up to a set limit. These services were delivered to Vietnamese. The ODPT will meet a reasonable request to councils by Victorian Interpreting and Translation Services translate a reply to a correspondent into their first (VITS) on behalf of DOI. In 2001–02, those councils that language. had more than 2,000 residents with a low level of The VicTrip web site provides timetable and fare proficiency in English (the predominant users of the credit information for all buses, train and trams in Victoria, as line) were provided with a direct grant. Other councils well as up-to-date information on special events. The web continued to receive access to language services through a site at www.victrip.com.au provides explanatory pooled credit line. information in Greek, Italian, Vietnamese, Chinese The program was reviewed in early 2002 in consultation Traditional, Chinese Simplified and Japanese. with councils and the Victorian Office of Multicultural The Multilingual Information Line (MIL) is a telephone Affairs. As a result of the review, the allocation of the service established by the Department of Infrastructure as a funding has been altered such that, from 2002–03, the vehicle to reach its multicultural audience. The MIL allows available funds are to be distributed on the basis of: information relating to DOI projects to be recorded and • English proficiency accessed in 13 different languages – Arabic, Cantonese, • immigration data on place of settlement of newly Croatian, Greek, Italian, Macedonian, Polish, Russian, arrived migrants Serbian, Spanish, Turkish, Vietnamese and English. • Centrelink data on refugees on Temporary Protection Best Value Victoria Community Consultation Visas. Resource Guide For 2002–03, councils with more than 200 residents with Best Value Victoria is a key component in the Government’s low English proficiency have been given a choice as to commitment to develop a genuine partnership between whether they wish to receive a direct grant or receive State and local government in Victoria. Best Value services via a credit line. Of the 36 councils in this category, empowers local governments to reconnect with their 20 have chosen to receive a direct grant. communities. Best Value is based upon six principles: Information relating to public transport services • quality and cost standards Outlined below are details of the language services which • responsiveness are available to ensure that Victorians can access • accessibility government-funded public transport services. • continuous improvement The Customer Charters of the public transport franchise • community consultation operators are currently being revised to ensure that: • community reporting

Department of Infrastructure Annual Report 2001–02 173 Multicultural Performance Report

DOI’s Local Government Division, in consultation with the • feasibility studies have been undertaken to determine Victorian Local Governance Association (VLGA), has the demand for the handbook and licence test to be produced the Best Value Victoria Community Consultation made available in more languages; as a result, it is likely Resource Guide. The guide includes recognition of the that more languages will be added to the list by the needs of culturally and linguistically diverse communities end of the year (CALD), and directs councils to the Ethnic Community • consultants are being engaged to determine the Council of Victoria for advice and direction in consulting penetration of the licensing message to all Victorians with CALD communities. The resource guide has been (including non-English speaking communities). widely disseminated throughout the local government Appointment of Public Transport Ombudsman sector and is available on the Best Value web site at www.doi.vic.gov.au The Government has announced the creation of the position of Public Transport Industry Ombudsman (PTIO), Marine safety initiatives to take effect early in 2003. Customers will be able to refer Through Marine Safety Victoria, DOI is currently introducing issues to the PTIO if they were dissatisfied with the initial licensing for operators of all mechanically powered handling of a complaint. recreational vessels. This will necessitate all boat operators Complaints about public transport services are currently being tested on their knowledge of waterway rules and referred variously to public transport operators, VicTrip, safe vessel operation. Initially some 250,000 Victorians will OneLink, the Director of Public Transport and the Minister need to obtain a licence and the growth rate is anticipated for Transport's office. The appointment of an independent to be approximately 2 per cent a year. A major complaints handling agency will ensure a more simplified communications strategy has been implemented to make and streamlined complaints service for all consumers, all Victorian boaters aware of the licensing requirements including those from a non-English speaking background. and testing processes. Performance indicators To facilitate the provision of adequate information regarding the new licensing requirements to all Victorians, The review, in early 2002, of the Local Government including those from non-English speaking backgrounds, Language Services program has resulted in a significant the following initiatives are being implemented: amendment in the allocation of funds, to facilitate a more targeted and effective use of the service. The performance • production and dissemination of two major licensing indicators for the use of VITS and MIL are the monitoring bulletins with multilingual components of numbers of calls/requests for information in the available • details advertised in several ethnic newspapers languages. • licensing information broadcast and advertised on Performance indicators to determine the effectiveness of ethnic radio stations the boat operator licensing campaign, especially for • licensing information sessions held at ethnic community Victorians from non-English speaking backgrounds, include: clubs and associations • the number of people requesting the licence handbook • licence tests are currently available in four languages in languages other than English other than English, and interpreter assistance is available for applicants undergoing licence tests in • the number of people taking tests in languages other almost all languages (with all costs being met by than English Marine Safety Victoria) • the number of people using interpreters for licence • group licence testing at club premises available for tests members of ethnic clubs and associations

174 Department of Infrastructure Annual Report 2001–02 Multicultural Performance Report

• feedback from community groups regarding the supply Performance indicators of information and availability of testing. Performance indicators will be measured by the Encouraging participation – current and planned opportunities provided for multicultural participation in initiatives consultation activities, by way of the language services provided and the information channels used to promote Participation in infrastructure projects information. DOI encourages and facilitates participation in and ‘ownership’ of the infrastructure projects for which it is Promoting economic, social and cultural benefits responsible by providing up-to-date information about for all victorians – current and planned initiatives those projects in 12 languages plus English, via DOI's MIL. DOI is making a significant contribution to achieving the Another example of encouraging participation in the objectives of the Government’s Growing Victoria Together invitation extended to a senior representative of the framework, which sets out the State’s broad social, Multicultual Commission to be involved in the design economic and environmental goals for the future. ‘charrette’ for Spencer Street Station in December 2001. Through this commitment to Growing Victoria Together, DOI is contributing to the growth of all Victoria and Appointments to boards and committees supporting all Victorians and their wide ranging needs. DOI has a policy of appointment on the basis of merit DOI’s employment and human resource policies are aimed to all positions, including to boards and committees. at achieving equal opportunity for all. All appropriately qualified persons are encouraged to apply for appointment, regardless of their racial background, and are assessed on their ability to perform at the level required for any given position. National Competition Policy

Participation in local government Local government is recognised as an independent third tier DOI has complied with the requirements of National of government, and the Victorian Government has no role Competition Policy and is continuing to report to the to play in the selection of candidates for local government. Department of Treasury and Finance as required regarding However, through its policies of explicit support for equity implementation. and cultural diversity, the Victorian Government provides an environment that encourages people from multicultural backgrounds to actively participate in the exercise of local democracy, both as voters and as elected representatives. In local government elections, unlike State and Commonwealth elections, non-Australian citizens are permitted to vote. Enrolment for local council elections is based on ownership or renting rateable property in the municipality.

DOI will continue to encourage participation by all Victorians through the initiatives and policies outlined above.

Department of Infrastructure Annual Report 2001–02 175 Consultants

The following table lists the consultants engaged in 2001-02 where the cost of engagement exceeded $100,000.

Consultant Project Total approved Expenditure Forecast project ($) 2001–02 ($) expenditure ($) (GST incl) (GST incl) (GST incl) OECD Melbourne Paper 250,000 139,434 110,566 Territorial Review

KPMG Corporate Scoresby Transport 254,347 254,347 0 Finance (Aust) Corridor- Financing Pty Ltd Options Study

Steer Davies Revenue allocation 350,000 119,318 198,864 Gleeve dispute advisory services

Sinclair Knight Public Transport 140,000 140,000 0 Merz Operations Simulation Modelling

KPMG Business Case Study 175,000 132,000 0 for Government Investment in the Showgrounds

Spiller Gibbins Metropolitan Strategy 102,835 102,835 0 Swan Pty Ltd Urban Management Issues

Peddle Thorp Architectural Study for 106,320 35,314 71,006 Pty Ltd Government Investment in the Showgrounds

In addition, 36 consultancies costing less than $100,000 were engaged at a total cost of $1,176,506.

The responses for 2001–02 reflect the fact that 43 of the various professional service contracts entered into by the Department during the relevant period met all three of the tests for classification as a consultancy.

These are the criteria the Department is required to apply in identifying consultant engagements for inclusion in its Annual Report.

Considerably fewer engagements passed the test of these criteria in 2001–02 than in 2000–01.

176 Department of Infrastructure Annual Report 2001–02 Whistleblowers legislation – DOI response

• The number and type of disclosures made to the public body since the start of the Act (in January 2002). NIL • The number of disclosures referred to the Ombudsman (to determine whether they are public interest disclosures). NIL • The number and types of disclosures referred to the public body by the Ombudsman. NIL • The number and types of disclosures referred by the public body to the Ombudsman to investigate. NIL • The number and types of investigations of disclosures taken over by the Ombudsman from the public body. NIL • The number of requests by complainants to have their disclosure investigated by the Ombudsman due to their dissatisfaction with the way the public body is investigating the matter. (The circumstances are set out in section 74 of the Act.) NIL • The number and types of disclosure that the public body has declined to investigate. NIL • The number and type of disclosed matters that were substantiated on investigation and the action taken on completion of the investigation. NIL • Any recommendations made by the Ombudsman that relate to the public body. NIL

Department of Infrastructure Annual Report 2001–02 177 Disclosure of major contracts compliance

DOI has disclosed all contracts greater than $10 million in value which it entered into in 2001–02.

The disclosed contracts can be viewed on www.tenders.vic.gov.au

178 Department of Infrastructure Annual Report 2001–02 Other available information

The Directions of the Minister for Finance, pursuant to the Requests for information should be directed to: Financial Management Act 1994, require a range of Mr Lawrie Tooher information to be prepared in relation to the financial year. Director, Executive and Legal This material is itemised below and, where not published in Department of Infrastructure this report, is retained by the accountable officer and can Level 15, Nauru House be made available to Ministers, Members of Parliament and 80 Collins Street the public on request, subject to the limitations of the Melbourne, Victoria, Australia 3000 Freedom of Information Act 1982.

• declarations of pecuniary interests completed by all relevant DOI officers for the year ended 30 June 2002 • details of shares held by senior officers as nominees or Building Act Compliance held beneficially in a statutory authority or subsidiary • details of publications produced by DOI and where the The Directions of the Minister for Finance require this publications can be obtained Annual Report to include a statement on the extent of • details of changes in prices, fees, charges, rates and compliance with the building and maintenance provisions levies charged by DOI of the Building Act 1993, for publicly-owned buildings • details of major external reviews carried out on DOI controlled by DOI. DOI does not own or control any • details of major research and development and government buildings. 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 major committees sponsored by DOI, the purpose of each committee and the extent to which the purpose has been achieved.

Department of Infrastructure Annual Report 2001–02 179 Late annual reports

Councils and regional library corporations are required to East Gippsland Shire Council submit annual reports within three months of the end of Golden Plains Shire Council the financial year. Sections 125(5) and 196(7) of the Local Hume City Council Government Act 1989 require the Minister for Local Macedon Ranges Shire Council Government to report any council or regional library’s failure to submit its annual report within the time allowed. Manningham City Council Councils and regional libraries that did not submit their Maroondah City Council annual reports for the period 2000–01 within the specified Moira Shire Council period are: Moorabool Shire Council Buloke Shire Council Mornington Peninsula Shire Council Cardinia Shire Council Mount Alexander Shire Council Gannawarra Shire Council Murrindindi Shire Council Greater Dandenong City Council Nillumbik Shire Council Hindmarsh Shire Council Surf Coast Shire Council Horsham Rural City Whitehorse City Council Indigo Shire Council Whittlesea City Council Mornington Peninsula Shire Council Yarriambiack Shire Council Queenscliffe Borough Council

Surf Coast Shire Council Goulburn Valley Regional Library Corporation Towong Shire Council Hume-Moonee Valley Regional Library Corporation North Central Goldfields Regional Library Corporation North Central Goldfields Regional Library Corporation West Gippsland Regional Library Corporation Wimmera Regional Library Corporation. Yarra Plenty Regional Library Service Yarra-Melbourne Regional Library Corporation.

Late corporate plans 2002–05

Councils and regional library corporations are required to submit corporate plans by the end of the financial year or a later date as allowed by the Minister for Local Government, pursuant to section 153A of the Local Government Act 1989. Councils and regional libraries that were late in submitting their corporate plans for the period 2002–05 are:

Ararat Rural City Council Buloke Shire Council Delatite Shire Council

180 Department of Infrastructure Annual Report 2001–02 Compliance Index

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 has been prepared to facilitate identification of compliance with statutory disclosure and other requirements.

Clause Disclosure Page Report of Operations Charter and purpose

9.1.3 (i) (a) Manner of establishment and Ministers 2-5 9.1.3 (i) (b) Objectives, functions, powers and duties 2, 3 9.1.3 (i) (c) Nature and range of services provided 2-5 Management and structure 9.1.3 (i) (d) (i) Name of Chief Executive Officer 4 9.1.3 (i) (d) (ii) Names of senior office holders and brief description of responsibility 6-11 9.1.3 (i) (d) (iii) Chart setting out organisational structure 5 9.1.3 (i) (e) Workforce data and application of merit and equity principles 56-58, 165, 170, 171 9.1.3 (i) (f) Application and operation of FOI Act 1982 171 Financial and other information 9.1.3 (ii) (a) Summary of financial results with previous four year comparatives 61, 62 9.1.3 (ii) (b) Summary of significant changes in financial position 61,62 9.1.3 (ii) (c) Operational and budgetary objectives and performance against objectives 78-85, 124-151 9.1.3 (ii) (d) Major changes or factors affecting achievement 124-151 9.1.3 (ii) (f) Details of consultancies over $100,000 176 9.1.3 (ii) (g) Details of consultancies under $100,000 176 9.1.3 (ii) (h) Extent of compliance with Building Act 1993 179 9.1.3 (ii) (i) Statement of availability of other information 179 9.1.3 (ii) (k) Statement on Competition Policy 175 9.8.2 (i) Occupational Health and Safety reporting 170 Other Multicultural Performance Report 172-175 Whistleblowers legislation response 177 Whistleblowers Protection Policy 197-205 Financial Statements Preparation 9.2.2 (ii) (a) Statement of preparation on an accrual basis 69 9.2.2 (ii) (b) Statement of compliance with Australian Accounting Standards and associated pronouncements 69 9.2.2 (ii) (c) Statement of compliance with accounting policies issued by the Minister for Finance 69 Statement of financial performance 9.2.2 (i) (a) Statement of financial performance for the year 66 9.2.3 (ii) (a) Operating revenue by class 66, 91-93 9.2.3 (ii) (b) Investment income by class 66, 91 9.2.3 (ii) (c) Other material revenue by class including sale

Department of Infrastructure Annual Report 2001–02 181 Compliance Index

of non-goods assets and contributions of assets 66, 91 9.2.3 (ii) (d) Material revenues arising from exchanges of goods or services 66, 91 9.2.3 (ii) (e) Depreciation, amortisation or diminution in value 66, 97 9.2.3 (ii) (g) Financing costs 66, 96 9.2.3 (ii) (h) Net increment or decrement on the revaluation of each category of assets 102, 104, 105 9.2.3 (ii) (i) Auditor-General’s fees 111 Statement of financial position 9.2.2 (i) (b) Statement of financial position for the year 67 Assets 9.2.3 (iii) (a) (i) Cash at bank or in hand 67, 98 9.2.3 (iii) (a) (ii) Inventories by class 67, 99 9.2.3 (iii) (a) (iii) Receivables, including trade debtors, loans and other debtors 67, 99 9.2.3 (iii) (a) (iv) Other assets, including prepayments 67 9.2.3 (iii) (a) (v) Investments by class 67, 98, 120, 121 9.2.3 (iii) (a) (vi) Property, plant and equipment 67, 100-102 9.2.3 (iii) (a) (vii) Intangible assets 67, 103 Liabilities 9.2.3 (iii) (b) (iii) Trade and other creditors 67, 103 9.2.3 (iii) (b) (v) Provisions, including employee entitlements 67, 103 Equity 9.2.3 (iii) (c) (i) Contributed capital 67, 104, 105 9.2.3 (iii) (c) (ii) Accumulated surplus 67, 104 9.2.3 (iii) (d) Reserves, and transfers to and from reserves 67, 104, 105 Statement of cash flows 9.2.2 (i) (c) Statement of cash flows for the year 68, 122 Notes to the financial statements 9.2.2 (i) (d) Ex-gratia payments 122 9.2.3 (iv) (b) Contingent liabilities 111-113 9.2.3 (iv) (c) Commitments for expenditure 114-117 9.2.3 (iv) (d) Government grants received or receivable and source 66, 92, 93, 104, 120, 121 9.2.3 (iv) (e) Employee superannuation funds 118 9.4.2 Transactions with responsible persons and their related parties 109 9.10 Consistency of Budget and Departmental Reporting 160-164

182 Department of Infrastructure Annual Report 2001–02 Statutory Authorities

Department of Infrastructure Annual Report 2001–02 183 Statutory Authorities

Architects Registration Board of for mutual recognition between Boards and with other Victoria countries, harmonised legislative guidelines, national examinations for registration, review of Competency The Architects Registration Board of Victoria is a statutory Standards in Architecture, and development of a authority established under the Architects Act 1991 to national register protect the community from incompetent or unprofessional • participated in consultations with Building Commission, architects. The Board is made up of architects and other Royal Australian Institute of Architects, Association of non-architect members of the community appointed by the Consulting Architects on improvements to legislation Governor-in-Council. following NCP reviews.

Role Priorities for 2002–03 • register architects and approve architectural companies • best practice initiatives through consultation with the and partnerships and publish the Register profession, audit and published advice • conduct inquiries into the conduct of architects, either • improved information for the public about the Board’s initiated by complaint or by the Board itself role, particularly regarding inquiries into professional • conduct investigations of the use of the prescribed practice words (architect, architectural, architecture), where it • improved investigation and inquiry procedures appears that a breach of the Act may be involved • review of examinations used for entry to registration • administer assessments and examinations to determine • improved accreditation procedures for architecture eligibility for registration qualifications • accredit architectural courses at universities. • further development of a national listing of architects Achievements for 2001–02 through the Architects Accreditation Council of Australia. • provided advice to the public and government about the registration status of architects and companies Building Commission • conducted, in conjunction with the Royal Australian Institute of Architects, reviews of architectural courses Role at recognised universities The Building Commission and four associated statutory • conducted reviews of academic equivalence and bodies oversee the administration of Victoria’s building Architectural Practice examinations for more than legislation. The Commission is the regulator of the Victorian 100 applicants building industry and provides whole-of-government • maintained an independent tribunal inquiry process and building advice to the Minister for Planning. It also provides provided technical, legal and administrative services for a range of services to Victorian building practitioners and tribunals and complainants to improve the investigation consumers in order to improve the quality of buildings, of matters and their resolution increase customer satisfaction with building services and • tribunal outcomes are published in the Board’s web site raise the profile of the industry. and newsletter Achievements for 2001–02 • conducted investigations of alleged misuse of the prescribed words and, where appropriate, obtained • the Building Commission played a critical role in compliance reshaping builders warranty insurance in Victoria after insurers indicated in March 2002 that they wanted to • through the Architects Accreditation Council of leave the market. With DOI, the Department of Treasury Australia, the Board has supported national initiatives

184 Department of Infrastructure Annual Report 2001–02 Statutory Authorities

and Finance, the New South Wales Government and • in 2003, changes are proposed for high-risk shared other stakeholders, the Commission developed and accommodation buildings (such as backpacker hostels), implemented a package of measures that both ensures maintenance of essential services, energy efficiency builders warranty insurance remains available, and requirements and much more delivers better outcomes for builders and consumers in • the Commission’s industry outcomes measurement relation to building disputes program will be launched. The program will enable • the Commission worked together with Consumer periodic evaluation of industry performance in relation Affairs Victoria to create Building Advice and to building quality, consumer satisfaction and industry Conciliation Victoria (BACV), a one stop shop to assist profile. The Commission’s own performance will also builders and their customers resolve disputes swiftly be measured and efficiently • the Commission will launch a discussion paper on • to ensure fair and timely payment of contractors and continuing professional development for registered subcontractors to the building industry, the Commission building practitioners during the financial year. developed Security of Payment legislation that comes into force by 31 January 2003. The new laws prevent Docklands Authority big businesses from exploiting loopholes in existing The Docklands Authority was established to develop, in legislation to avoid paying monies owed partnership with the private sector, the 200-hectare • in partnership with the Sustainable Energy Authority Melbourne Docklands site at the western edge of (Victoria), the Commission commissioned research on Melbourne’s Central Area. the introduction of a five-star energy standard for all new homes. The new standard was launched by Role Victorian Premier in June 2002 as part of The objectives and functions of the Authority under the the Government’s Greenhouse Strategy Docklands Authority Act 1991 (as amended) are to: • to protect genuine owner-builders and ensure the • develop the area safety of the community, the Commission launched a discussion paper proposing that the term ‘owner- • promote private-sector and public involvement builder’ be redefined, and that the activities of self- • oversee and coordinate the development styled owner-builders who do not fit the new definition • investigate development and infrastructure options and be limited plans • a partnership program for local government • take measures to encourage people to live and work in consultation was implemented, to promote information Docklands exchange and greater understanding of building • create an attractive environment industry issues across Victoria. A key component of the program is regular visits by the Building Commissioner • promote economic, cultural and social development to regional Victoria, to meet with mayors, municipal and activities to promote tourism to, and for, the chief executives, building surveyors and other local benefit of the Docklands area. industry stakeholders. Achievements for 2001–02 Priorities for 2002–03 • links to the city reinforced with the Government’s • the Building Commission will launch a number of initiative to extend Collins Street from Spencer Street dispute reduction strategies to enhance the work of Station to the waterfront Building Advice and Conciliation Victoria

Department of Infrastructure Annual Report 2001–02 185 Statutory Authorities

• first new residents moved into Docklands (the Arkley • progressive completion and occupancy of residents in and Sant Elia buildings at MAB Corporation’s towers 1, 2 and 3 at Mirvac Yarra’s Edge, NewQuay) complemented by the first stage of public promenades • construction began on the National Australia Bank’s • announcement of successful bidder for the $0.5 billion new campus-style office buildings, for up to 4,000 entertainment/retail Waterfront City development. staff, in Lend Lease’s Victoria Harbour Precinct • the Commonwealth Government’s Bureau of Hastings Port (Holding) Meteorology decided to relocate its Head Office to the Corporation Folkestone/Leighton Joint Venture development at 700 Role Collins Street, Docklands Hastings Port (Holding) Corporation (HPHC) is a body • in the Batman’s Hill Precinct, new projects, valued at corporate established under Part 2 of the Port Services Act more than $1 billion, including Pan Urban’s ‘Watergate’ residential apartment tower development, the 1995. HPHC holds property connected with the Port of Folkestone Leighton Joint Venture, and Village Hastings and ensures that there is at all times a port Docklands (the Malaysian-based Kuok Group) which is operator in relation to that port through the administration developing a mixed-use precinct of a port operation agreement. HPHC seeks to facilitate relationships with the port operator, the wider community • Victorian Government’s commitment to a $40 million Docklands Studio project and add value where possible. • two major Urban Art Program projects realised: the HPHC reports to both the Treasurer and the Minister for installation of a 25-metre public art sculpture ’Eagle’ by Ports with respect to corporate planning, quarterly and leading Victorian sculptor Bruce Armstrong, on annual performance and other statutory requirements. Wurundjeri Way; Harbour Esplanade public art If directed by Order of the Governor in Council, HPHC is competition winners announced to integrate artworks able to act as port operator or channel operator for any along the ‘spine’ of Docklands period during which there may not be in force an • successful completion of remediation works at the agreement for operation of the port or channels. former West Melbourne Gasworks. Achievements for 2001–02 Priorities for 2002–03 • participation in the Victorian Port Reform Review Project • Docklands’ first waterfront restaurants open in MAB • establishment of an office within the town of Hastings NewQuay, along with a number of other retail and café with a view to establishing better local community and outlets business relations • completion and occupancy of residents in the Palladio • continued advocacy for development of long-term and Boyd buildings strategic planning for the Port of Hastings and its • completion of the first stage of Grand Plaza, the civic surrounds heart of Docklands, and part completion of Harbour • completion of a revaluation of all port infrastructure Esplanade, the main public promenade and ‘spine’ of • start of a review of the existing maintenance program Docklands with respect to the service capacity of port jetties and • construction to begin on numerous major projects in associated infrastructure Docklands, including the Bureau of Meteorology’s new • commencement of an external review of risk Head Office, Pan Urban’s ‘Watergate’ development, the management profiles for HPHC first residential tower in Victoria Harbour and the Webb Bridge over the Yarra River

186 Department of Infrastructure Annual Report 2001–02 Statutory Authorities

• participation in discussions regarding the development 10-week excavation from May to July 2002. Casselden of an Environmental Management Plan for Westernport Place was part of the ‘Little Lon’ district of early and proposed establishment of Westernport Biosphere Melbourne, notorious as a slum and red light district. Reserve. Successful initiatives to allow the general public to have a direct involvement in the dig included site tours, an Priorities for 2002–03 on-site viewing platform, a special web page and • participate in development of a Statewide Strategic participation in the dig. More than 130,000 artefacts Framework for all ports were uncovered. • participate in implementation of a review of the charter, • Railway Heritage. In March 2002, a report detailing structure and resourcing for HPHC with a view to VicTrack infrastructure listed on the Victorian Heritage properly equipping it to plan and provide for the Register was compiled by Heritage Victoria. The report potential future role of the Port of Hastings in the included all existing railway infrastructure such as Victorian port and freight logistics program bridges, water towers, railway stations and tunnels, to • establishing better consultation and community links. establish the condition and heritage significance of the structures. The report will form the basis of a Heritage Council restoration works program to be undertaken by VicTrack. Role • Public Heritage Program. The Public Heritage Program The role of the Heritage Council, as set out in the Heritage this year funded a total of 54 projects across the State, Act 1995, is to: with a value of more than $4 million. A highlight this year was the completion of the restoration of • provide heritage policy advice to the Minister for Maltzahn’s Farmhouse, part of the historic Planning Westgarthtown settlement. With a grant of $266,000 • decide which places to add to the Victorian Heritage from the Public Heritage Program, and guided by a Register conservation plan that took into account all the historic • hear appeals against permit determinations by the evidence, the ruins were transformed into a usable Executive Director, Heritage Victoria residence. • approve heritage grants • HMVS Cerberus. The Maritime Heritage Unit has • promote an understanding of heritage in the worked with the City of Bayside, Parks Victoria, the community. National Trust and concerned members of the public to formulate a plan with the long-term aim to return the Achievements wreck of the internationally significant Cerberus to its • Victorian Heritage Register. This year there has been original pre-collapse profile. The Heritage Council great progress in the assessment of places of landscape provided funding towards a feasibility study. and horticultural value for inclusion in the Register. • Web site. The web site has been revamped over the Most significantly, the Royal Botanic Gardens in South past six months, enabling a broader range of Heritage Yarra were added. Established in 1846, this Melbourne Council functions to be represented online. This will icon has contributed significantly to the development of allow the site to be kept current and dynamic, creating landscapes throughout Victoria. a more enriched and useful resource for web site users. • Casselden Place. The most significant archaeological • Victorian Heritage Strategy 2000–05. Steady progress project undertaken last year was the Casselden Place has continued to be made on the implementation of excavation in Melbourne’s CBD. Test excavations were this Strategy. The Heritage Council established the carried out late in 2001, followed by an extensive Heritage Collections Advisory Committee, which held its

Department of Infrastructure Annual Report 2001–02 187 Statutory Authorities

inaugural meeting on 30 November 2001. The main • introduced corresponding legislation between New task of the Committee is to develop a strategy for South Wales and Victoria to rationalise marine safety identifying and assessing significant collections. legislation on Lakes Hume and Mulwala • Cultural heritage. The Heritage Council, in June 2002, • introduced legislation to improve the safety of made a submission to ensure that cultural heritage operators of hire-and-drive vessels issues are appropriately considered as part of the • conducted major educational opportunities for Commonwealth Government’s Review of Environment recreational boat operators at the Melbourne ‘Four- Assessment procedures. It is envisaged that, as a result Wheel Drive and Fishing Show’ and 10 regional events of the review, heritage impact assessments for all major • mounted effective response to one major and many development proposals will be incorporated into the minor marine pollution incidents along the Victorian environment assessment process. coast, including a sizeable incident affecting the • New Chair. Ms Catherine Heggen finished her term as penguin rookery at Phillip Island Chair of the Heritage Council after four years at the • completed the transitional arrangements, including helm and six years on the Council. The new Chair, legislative amendments, to replace the Marine Board of Ms Chris Gallagher, took up the position on 1 July 2002. Victoria with the Office of the Director of Marine Safety, Marine Board of Victoria which trades as Marine Safety Victoria (MSV). The legislative amendments to replace the Marine (now Marine Safety Victoria) Board with the Office of the Director of Marine Safety (1 July 2001–7 February 2002) came into effect on 7 February 2002. This was foreshadowed in the Marine (Further Amendment) Act Role 2001 which received assent on 27 November 2001. The role of the Marine Board of Victoria, as set out in the Marine Act 1988, is to: Priorities for 2002–03

• facilitate the efficient and safe operation of vessels and • implement the second stage of recreational boat the safety of navigation on State waters operator licensing requiring all operators of mechanically powered recreational vessels to be • improve community awareness of boating safety licensed for operation from 1 February 2003 • improve and simplify registration and operating • develop and enact regulations for the operation of hire requirements for vessels on State waters and drive vessels, including the licensing of operators of • be responsible for ensuring an effective response to oil some vessels pollution incidents on State waters. • develop and implement an annual boating safety Achievements for 2001–02 funding and facilities programs to assist recreational boating community organisations with improvements • continued revision of Statewide survey operations to to public boating facilities, safety awareness, training, ensure target of 100 per cent of commercial vessels search and rescue and other related safety initiatives requiring survey is achieved during fiscal year 2001–02 • implement a marine online grants system which will • introduced the licensing of operators of mechanically enable electronic submission of applications for marine powered recreational vessels from 3 December 2001 grants and provide for more efficient coordination and • published the first reports of investigations into marine administration of the of the grants process incidents within Victorian waters for the public record • progressively implement the new National Standard for Commercial Vessels during the course of the year

188 Department of Infrastructure Annual Report 2001–02 Statutory Authorities

• in conjunction with the National Marine Safety Protection Authority and relevant water authorities, Committee, MSV will contribute to the development of facilitated the design and installation of a water a National Standard for Recreational Boat Safety recycling plant to filter and treat water pumped out of Equipment, which is being developed to provide the tunnels prior to its reinjection into the ground- nationally consistent safety equipment standards for all water aquifers, dramatically reducing the demand for recreational boats fresh water • contribute to and assist with the implementation of the • worked with Transurban to modify the relationship with next wave of port reform in Victoria. the State regarding Transurban’s ‘Single Purpose Entity’ status. The MCLA facilitated the agreement between Melbourne City Link Authority the parties that saw incremental benefits to the State (1 July 2001–28 February 2002) including : • a facilitation fee of $10 million to the State (over a Role three-year period) The Melbourne City Link Authority (MCLA) was established • a commitment for Transurban to retain its corporate by Act of Parliament in December 1994 to represent the Head Office in Victoria, notwithstanding involvement State in the $2.2 billion City Link project. Following in interstate and overseas projects completion of the City Link in December 2000, the • a commitment that it would work to ensure all Government reviewed the needs of the State in the technological enhancements to its products would be ongoing management of the City Link contract. completed in Victoria. In December 2001, Parliament passed the Melbourne City • negotiated on behalf of the State for a further period of Link (Further Amendments) Act 2001 that established the warning notices for first time offenders until the end of position of Director, Melbourne City Link and imposed a May 2002 number of statutory functions on that position. The new position of Director, Melbourne City Link within DOI came • further promoted customer improvements by introducing an extended weekend pass from 1 February into operation on 1 January 2002. 2002, providing motorists with an extra 12 hours more Following a number of extensions, the term of appointment than the original weekend pass, to apply from midday of the Board of the MCLA ended on 31 December 2001. Friday to midnight Sunday To accommodate minor financial and administrative • monitored quarterly toll-price rises by Transurban in completion arrangements, the legal entity of the MCLA was accordance with the Concession Deed to ensure retained until 28 February 2002 by the proclamation of customer protection. sections 38 and 39 of the Melbourne City Link (Miscellaneous Amendments) Act 2000 which repealed the Melbourne Port Corporation Melbourne City Link Authority Act 1994. Role Achievements for 2001–02 The Melbourne Port Corporation (MPC) owns and manages During the period under review, the MCLA : the land and berths in the Port of Melbourne. It is responsible for the planning and development of the port • monitored completion of the Burnley Tunnel repair and facilitating trade and commerce for the economic works. Further works to enhance the connection benefit of the State of Victoria. between the wall and the floor of the Burnley Tunnel were completed in early 2002 • in response to government and community concern, and in conjunction with Transurban, the Environment

Department of Infrastructure Annual Report 2001–02 189 Statutory Authorities

Achievements for 2001–02 The artwork is the largest multifaceted animated lighting project in Australia and adds another • as part of the Victoria Dock redevelopment project, the dimension to the enhancement of the port environment Minister for Ports, the Hon. Candy Broad, officially for customers, neighbours and the local community. opened the realigned Moonee Ponds Creek. The creek realignment provides for the development of a 20 Priorities for 2002–03 hectare site to expand bulk and general cargo handling • the Australian Customs Office will complete its facilities in the port $11 million container contamination and scanning • a Partner Ports Agreement linking the Port of facility. The facility will allow not only a reduction in Philadelphia and the Port of Melbourne was signed by inspection times but its location in the port means the the Minister for Ports and the Governor of Pennsylvania. inspection of a greater number on containers and The Port of Philadelphia is the most significant port on increased protection for the State of Victoria the east coast of the USA for Australian exports and • the reintroduction of rail to Swanson Dock West will imports. The agreement will help to promote friendship greatly improve the level of rail access into and out of and co-operation, strengthen international trade and the port and will provide the necessary infrastructure to economic prosperity, and encourage investment and help achieve the Government’s target of 30 per cent of trade between the two ports the port’s container traffic being carried by rail. • the Minister for Ports launched the MPC’s whole-of- port Environmental Management Plan. The Plan Plumbing Industry Commission identifies all the areas upon which port operations can impact, such as air quality and water quality, and sets Role out the strategies that will help ensure any impacts are The Plumbing Industry Commission (PIC) is a body effectively managed. It was developed in collaboration corporate established by Part 12A of the Building Act 1993. with customers, stakeholders and the wider community Its main functions are to administer the licensing and • two new service providers began operations in the port: registration system for plumbers and the development and ANL, which began its Bass Strait services from Appleton maintenance of plumbing standards. The PIC contributes to Dock, and Australian Maritime Services, which began the protection of consumers’ health and safety by ensuring towage services. These developments will generate that plumbers have the required competencies and perform benefits for port in terms of increased competition and their work in accordance with technical standards. The choice of operator performance of the PIC is supported by the Plumbing • as part of the MPC’s commitment to revitalise the use Industry Advisory Council (PIAC), whose role is to provide of rail in the port a Heads of Agreement was reached advice to the Minister and the PIC on plumbing regulatory with P&O Trans (Australia) for the development of an matters. The PIAC has 14 members, representing vocational intermodal rail terminal to service P&O Ports’ container education, plumbing employers and employees, consumers, terminal at Swanson Dock West building, water and gas regulators. • the port’s land reserves were boosted by the purchase The mission of the PIC is to achieve community of a ten hectare property adjacent to the Maribyrnong River for $13.3 million. This was the MP’s first purchase expectations of safety, health and consumer protection of private land and will help meet the demands of trade through efficient and effective plumbing regulatory system. growth • a groundbreaking new public artwork, called Confluence – a Meeting of Waters, was opened at the Australian Bulk Alliance facility at F Appleton Dock.

190 Department of Infrastructure Annual Report 2001–02 Statutory Authorities

Achievements for 2001–02 • the development and implementation of a consistent plumbing regulatory system throughout Australia will The PIC continues to improve its business effectiveness and present a significant challenge in all jurisdictions. efficiency through introducing better systems and process and by working closely with its stakeholders, as outlined Public Transport Corporation below:

• licence and registration assessment processes are now Role fully computerised The Public Transport Corporation (PTC) was formed in July • field officers are equipped to record their activities or 1989 to operate trains, trams and buses in the Melbourne issue documents electronically anywhere in Victoria metropolitan area, passenger services in rural Victoria and freight services. • implementing strategies successfully dealing with the insurance issues The PTC ceased to be a provider of freight services from • facilitating the work program of the PIAC 1 July 1997 and passenger transport services from 1 July • participating in the development of the Plumbing Code 1998. The primary role of the PTC became the provision of of Australia and product approval procedures maintenance and other services to the passenger operators and other customers and the progressive outsourcing or • implementing the national plumbing competencies framework transfer of responsibility for these activities. • participated in research project with South East Water An administrator was appointed to the PTC on 23 aimed at decreasing water consumption December 1999 with the objective of winding it up. • development of energy and water saving strategies The PTC will be wound up in the financial year 2002–03. • producing and distributing educational videos in Achievements for 2001–02 partnership with the industry. • a staged settlement was negotiated of the ‘scope creep’ Priorities for 2002–03 and general claims lodged by Onelink in respect of the • the promotion of energy efficient installations is a Automated Ticketing contract major challenge that will require better strategic • tenders were called during the year for the facilities cooperation with all stakeholders to determine technical management of Preston Tram Workshops to secure its standards, while enabling consumers to use their own future operation. Subsequent to balance date, Alstom initiatives to increase the energy efficiency of their Australia Limited, who are committed to creating new homes and businesses work opportunities, were appointed as facilities • new strategies will be required to expedite responses to managers for Preston Tram Workshops consumer inquiries and investigation of complaints • at settlement, the majority of the Preston Workshops • the PIC will undertake systematic detailed analysis of staff, with an average of 25 years service, will transfer the data collected through audits and inspections to Alstom Australia Limited ensuring their valuable skills allowing better assessment of the effectiveness of the and experience are retained in the industry current system and developing strategies for further • during the year the Preston Tram Workshops, through improvements the efforts of its dedicated staff, continued to provide • the PIC is committed to the development of strategies essential tram maintenance services to the franchise encouraging professional development of plumbing operators. The Workshops also participated in fitting an practitioners and the staff upgraded braking system to W-class trams

Department of Infrastructure Annual Report 2001–02 191 Statutory Authorities

• the franchise operators have been provided with access Road in Braeside, Greens Road in Dandenong and to Preston Tram Workshops for the fitout and Berwick–Cranbourne Road in Berwick commissioning of their new tram fleets • in rural Victoria, the $85 million Calder Freeway, • progress was made in settling a number of public Woodend Bypass was completed and substantial liability and litigation cases. progress was made on the upgrade of the South Gippsland Highway between Lang Lang and Sale and Priorities for 2002–03 the duplication of the Bass Highway between Lang To enable the PTC to be brought to a conclusion, the major Lang and Anderson tasks in the coming year are to finalise the handover of • a new high-tech traffic management system called ‘Easy Preston Workshops in August 2002 under the facilities Merge-Safer Flow’ was trialled at the Thompsons Road management agreement, to conclude the remaining two entrance to the Eastern Freeway. This system uses stages of the Automated Ticketing settlement and to divest special traffic lights to control vehicles entering the the Green Star Parcels business. freeway during peak periods to reduce disruption to freeway traffic flow Roads Corporation of Victoria • a new driver licensing system was introduced which is (VicRoads) delivering significant community and administrative benefits, including an improved ability to provide Role electronic service delivery and an improved capability to VicRoads serves the community by managing Victoria’s prevent the issue of fraudulent duplicate licences road system and its use as an integral part of the overall • Victoria became the first State to introduce a written- transport network. off vehicle register, to control fraudulent re-registering of stolen vehicles. Achievements for 2001–02 • the arrive alive! road safety strategy for 2002–07, Priorities for 2002–03 developed by the road safety partners and co-ordinated • the Geelong Road upgrading will be completed. This by VicRoads, was adopted and launched by the will provide four lanes of traffic in each direction Victorian Government between Melbourne and Werribee and three lanes in • under the Government’s four-year $240 million each direction between Werribee and Geelong Statewide Accident Blackspot program, a total of • the $94 million Goulburn Valley Highway deviation at 391 blackspot locations were improved at a cost of Murchison East, which incorporates 18 km of four-lane $67 million divided highway is expected to be completed in early • more stringent drink-driving penalties were introduced, 2003, some 10 months ahead of schedule including alcohol interlocks for serious offenders and • the $240 million Statewide Accident Blackspot Program initiatives to tackle the over-representation of will continue in 2002–03 with $83.8 million funding to motorcyclists in casualty crashes. treat hazardous sites throughout the State • the first stages of the $270 million, 48 kilometre • a 50 km/h speed limit will be implemented on arterial Geelong Road upgrade were completed with the roads in a number of rural town centres and lower opening of the Maltby and Corio sections widened to time-variable speed limits will be introduced in a three lanes of traffic in each direction number of metropolitan strip shopping centres • major road improvement projects were completed in • an Advisory Council for Road-based Public Transport will the metropolitan and outer metropolitan areas be established to advise the Minister for Transport and including Mickleham Road in Westmeadows, Boundary VicRoads on the needs of road-based public transport

192 Department of Infrastructure Annual Report 2001–02 Statutory Authorities

• a works program will be implemented targeted to relating to the bidding process and conflict of interest improve the performance (running times) of road-based principles public transport, reduce the variability of travel times, • traffic flow in the Spencer Street Station subway was increase opportunities to change transport modes and dramatically improved by opening up the subway and contribute to improved public safety making it more accessible to the travelling public. • a new electronic Roadworthy Certificate system will be This was largely achieved by relocating retail outlets in implemented that will enable customers to obtain a the subway Roadworthy Certificate and register vehicles without • strong cooperative relationships were developed attending a Registration and Licensing office. This will between the SSSA and its working partners – DOI and improve customer service and enable more effective its Rail Projects Group, the City of Melbourne, auditing of the operation of Victoria’s 2500 Licensed Docklands Authority, VicTrack and the various Vehicle Testers. franchised operators within the development Spencer Street Station Authority • customer service was given a priority by the SSSA, with the establishment of information officers, signage and Role printed material to assist the travelling public to orient themselves within the complex and the city itself. The Spencer Street Station Authority (SSSA) began operations on 1 July 2000 under the Rail Corporations and Priorities for 2002–03 Transport Acts (Amendment) Act 1999. Specific objectives • the redevelopment of the complex will begin early in for the SSSA include: October 2002, led by successful tenderers Civic Nexus • to manage the precinct and the development, or • the SSSA will appoint roving ambassadors to welcome redevelopment, of the precinct for transport and related visitors to the station, provide them with orientation purposes, including commercial obligations information and to direct traffic flow • to monitor the requirements and likely future • security and safety measures will be increased within requirements for transport facilities at the precinct, and the complex in preparation for the period of major • any other functions conferred on the SSSA by the Rail construction between now and 2005 Corporations and Transport Acts (Amendment) Act • the completion of the Collins Street Extension will 1999, or any other Act. define the southern boundary of the new station. As a result, the completed development will have a Achievements for 2001–02 Collins Street address as well as the familiar Spencer • during its second year of operation, the SSSA has Street entry point. matured into an efficient and responsible organisation, employing competent senior staff with clear roles and Urban and Regional Land responsibilities. A variety of new strategies, systems and Corporation models were implemented, which will enable the SSSA to continue to work at optimal levels of efficiency Role • risk management issues were reviewed and the SSSA The Urban and Regional Land Corporation (URLC) has appointed risk management professionals to assist in responded to its new charter by broadening its activities to identifying and managing areas of significant encompass regional, urban renewal and design-related business risk initiatives. Under the theme of Smart Living, the URLC • detailed probity processes were established in focuses on the achievement of sustainable development, conjunction with an independent probity adviser, community building and outstanding urban design in all of its projects.

Department of Infrastructure Annual Report 2001–02 193 Statutory Authorities

Achievements for 2001–02 • soil remediation works at Cairnlea were completed, and the legless lizard, a protected species, was returned to Development of new communities the area, after undergoing a preservation and breeding • land assembly and planning begun for a major new program development in Epping North based on principles of • a major wetlands area was completed on the ecological and environmental sustainability, to provide Boardwalk estate at Point Cook about 8,500 homes and an expected population of • major road connections were completed at Cairnlea, 25,000 people Roxburgh Park and the Boardwalk, increasing • earthworks began for the development of Valley Lake at accessibility as well as serving the wider community Keilor East – a major redevelopment of the former • on an Anglican church site in North Bayswater , a Niddrie Quarry to create a residential development with project incorporating a mix of social and private about 400 house lots and about 380 apartments housing, demonstrating the achievement affordable Regional development housing and good environmental outcomes. • managing the redevelopment of the former Saleyards Priorities for 2002–03 site in Horsham to create a residential development •URLC will continue its expansion into regional Victoria, around an extensive wetlands precinct, together with a as well as its pursuit of urban renewal opportunities in commercial development that will contribute Melbourne, including Transit Cities developments significantly to the regional economy • town centres, planned in accordance with new urbanist • with DOI, VicTrack and the City of Wodonga, principles, will be created at the Boardwalk (Point Cook) development of a master plan for the central area of and Lancaster Gate (Bundoora) Wodonga after the existing railway line is relocated • URLC will continue its focus on community • with the City of Swan Hill, development of a major new development and environmental initiatives including residential area at Tower Hill, providing for the city’s water recycling and the development of an EcoHome as growth over the next 25 years as a model urban a demonstration project for environmentally sustainable precinct with a range of residential opportunities development responding to demographic changes • urban design and the achievement of built form Transit Cities outcomes will be emphasised, with a number of • URLC is acting as master developer to support the initiatives including working with builders to achieve Government’s Transit Cities program. The first project is fully integrated house and land products on all the in Dandenong, where the URLC is working with DOI URLC’s major estates. and the City of Dandenong on the redevelopment of the derelict former Stockyards site to transform it into a Victorian Channels Authority thriving residential community, building on its proximity Role to Dandenong station and contributing to the reinvigoration of Dandenong as a place to live and The Victorian Channels Authority (VCA) is a self-funding work statutory authority that began operation in March 1996. It is responsible for the commercial shipping channels and Liveable residential communities navigation aids in Victorian port waters and, on behalf of • during 2001–02 the URLC sold 2,156 lots, providing a the Victorian Government, for the emergency and distress diverse range of housing opportunities in master- coastal radio service. It also operates a one-stop-shop planned communities service to the shipping industry, with 24-hour commercial

194 Department of Infrastructure Annual Report 2001–02 Statutory Authorities

shipping control and coordination of services including • advance the establishment of a new entity for the Port pilotage, tugs and lines boats as well as customs and of Melbourne and commercial shipping channels. quarantine. VicTrack Achievements for 2001–02 Role • ISO 9002 certification for marine operations (including shipping control), navigational services and VicTrack owns the majority of Victoria’s rail infrastructure hydrographic surveying and land on behalf of the State. Most of these assets are leased to the Director of Public Transport for the purposes • completion of preliminary evaluation stage and start of of managing public transport franchise contracts with the more advanced assessment, including environmental private train and tram operators. As a result, VicTrack is not effects, of the possible deepening of Port Phillip channels directly involved in the provision of passenger or freight transport services. VicTrack’s primary role is to grow and • preparation for assumption of responsibilities for add value to the network and property assets under our managing the emergency/distress coastal radio service custodianship and seek and develop commercial • start of a new routine dredging regime that offers opportunities in the facilities management and opportunities to deliver operational cost savings telecommunications sectors. • ongoing testing and evaluation of a Dynamic Under- keel Clearance system for possible introduction in Achievements for 2001–02 2002–03 • a major initiative in which VicTrack was involved during • preparation for a major maintenance dredging the year was the establishment of a Rail Heritage campaign of commercial shipping channels in Port Advisory Panel. The role of the Panel is to establish Phillip and ports of Melbourne and Geelong during criteria to determine the significance of various 2002–03 historical rail properties, the extent and cost of • sponsorship for celebrations of Victorian maritime restoration works required, and prioritise the sites in heritage. line with available funding • as one of the largest landowners in Victoria, VicTrack Priorities for 2002-03 has continued to address its environmental obligations • progress Stage 3 of the Port Phillip Channel Deepening including undertaking remedial action to correct project involving more detailed studies on technical, problems that have resulted from past practices and to economic and environment issues, including the protect the environment for future generations. preparation of an Environment Effects Statement • VicTrack has continued to invest in public safety, project • begin major maintenance dredging campaign managing the Government’s level crossing upgrade • install the Swathe Bathymetry system for hydrographic program and undertaking trials of a new lower-cost survey to enhance productivity with its simultaneous solution for remote level crossings soundings capability • works continued during the year on the planning phase • introduce Dynamic Under-keel Clearance system that of the project to install a fibre optic backbone to the would increase the maximum available draught for regional centres of Geelong, Ballarat, Bendigo and ships calling at Melbourne and Geelong Traralgon. This project will provide improved signalling • develop a performance management system for the for the regional fast rail services as well as enhance VCA as provided under the enterprise bargaining regional broadband connections agreement

Department of Infrastructure Annual Report 2001–02 195 Statutory Authorities

• VicTrack continues to initiate and implement a range of commercial development projects, including new Other bodies and committees commercial leases, air space developments and outdoor advertising initiatives. Innovative developments such as the soon-to-be-completed Elsternwick Station enables Other bodies and committees utilised by DOI and its VicTrack to attract private investment to upgrade public Minister for advice include: transport facilities Australian Maritime Group • VicTrack continues to play a key role in facilitating and supporting the Government’s Transit Cities initiative, Australian Maritime Safety Authority working closely with other government Departments Boating Industry Association and agencies to enable the exciting Dandenong project Building Advisory Council to commence during the year. Building Appeals Board Priorities for 2002-03 Building Practitioners Board • complete a trial to investigate the feasibility of Building Regulations Advisory Committee transmitting real-time images from moving passenger City Circle Tram Promotions vehicles as part of an overall strategy designed to Hazardous Waste Siting Advisory Committee improve safety on public transport services and reduce the incidence of vandalism and graffiti Local Government Best Value Commission • play a key role in a number of major transport projects, Local Government Consultative Council including managing the land acquisitions for the Ministerial Advisory Committee for Public Libraries regional fast rail, gauge standardisation and Wodonga National Marine Safety Committee bypass projects Planning Panels Victoria • continue with a number of significant commercial Plumbing Industry Advisory Committee developments, including air space at Burke Road, Public Transport Access Committee Camberwell and at South Yarra Public Transport Customer Charter Committee • continue the program of restoring heritage stations and rail facilities in conjunction with Heritage Victoria – Public Transport Heritage Advisory Council major upgrade works are planned at Malmsbury, Victorian Motorcycle Advisory Council Ballarat, Pirron Yallock, Minyip, Manangatang and Victorian Bicycle Advisory Council Kangaroo Flat (interior), reflecting VicTrack’s Victorian Rail Freight Advisory Council commitment to the preservation of Victoria’s rail heritage assets. Victorian Road Freight Advisory Council Victorian Sea Freight Industry Council.

196 Department of Infrastructure Annual Report 2001–02 DOI’s Whistleblowers Protection Policy

Procedures for managing disclosures made pursuant to the Whistleblower Protection Act 2001

Contents

1. DOI philosophy 199 2. Purpose of these procedures 199 3. Objects of the Act 199 4. Definitions of key terms 199 4.1 Improper conduct 199 4.2 Corrupt conduct 199 4.3 Detrimental action 199 5. The reporting system 200 5.1 Contact persons within the Department of Infrastructure 200 5.2 Alternative contact persons 200 5.3 Making disclosures about persons other than DOI employees 200 6. Roles and responsibilities 200 6.1 All DOI employees and officers 200 6.2 Protected disclosure coordinator 200 6.3 Investigator 200 6.4 Welfare manager 201 7. Confidentiality 201 8. Collating and publishing statistics 201 9. Receiving and assessing disclosures 201 9.1 Has the disclosure been made in accordance with Part 2 of the Act? 201 9.2 Has the disclosure been made to the appropriate person? 201 9.3 Does the disclosure contain the essential elements of a protected disclosure? 201 9.4 Is the disclosure a public interest disclosure? 202 10. Investigations 202

Department of Infrastructure Annual Report 2001–02 197 DOI’s Whistleblowers Protection Policy

10.1 Introduction 202 10.2 Terms of reference 202 10.3 Investigation plan 202 10.4 Natural justice 202 10.5 Conduct of the investigation 203 10.6 Referral of an investigation to the Ombudsman 203 10.7 Reporting requirements 203 11. Action taken after an investigation 203 11.1 Investigator’s final report 203 11.2 Action to be taken 203 12. Managing the welfare of the whistleblower 203 12.1 Commitment to protecting whistleblowers 203 12.2 Keeping the whistleblower informed 204 12.3 Occurrence of detrimental action 204 12.4 Whistleblowers implicated in improper conduct 204 13. Management of the person against whom a disclosure has been made 204 14. Criminal offences 205 15. Review 205

198 Department of Infrastructure Annual Report 2001–02 DOI’s Whistleblowers Protection Policy

1. DOI Philosophy • The performance of a public officer’s functions dishonestly or with inappropriate partiality; The Department of Infrastructure is committed to the aims and objectives of the Whistleblowers Protection Act. It does not • Conduct of a public officer, former public officer or a public tolerate improper conduct by its staff, nor the taking of reprisals body that amounts to a breach of public trust; against those who come forward to disclose such conduct. • Conduct by a public officer, former public officer The Department of Infrastructure recognises the value of or a public body that amounts to the misuse of information or transparency and accountability in its administrative and material acquired in the course of the performance of their management practices and supports the making of disclosures official functions; or which reveal corrupt conduct, conduct involving a substantial • A conspiracy or attempt to engage in the above conduct. mismanagement of public resources or conduct involving a substantial risk to public health and safety or the environment. The Department will take all reasonable steps to protect people Examples of improper conduct who make such disclosures from any detrimental action in • To avoid closure of a town’s only industry, an environmental reprisal for the making of the disclosure. It will also afford health officer ignores or conceals evidence of illegal dumping natural justice to the person who is the subject of the disclosure. of waste. 2. Purpose of these procedures • An agricultural officer delays or declines imposing quarantine to allow a financially distressed farmer to sell diseased stock. These procedures establish a system for reporting disclosures of improper conduct or detrimental action by the Department of • A building inspector tolerates poor practices and structural Infrastructure or its employees. The system enables such defects in the work of a leading local builder. disclosures to be made to the Protected Disclosure Coordinator. Disclosures may be made by any DOI staff member, contractor or by members of the public. These procedures are designed to complement normal Examples of corrupt conduct communication channels between managers and staff. Staff are encouraged to continue to raise appropriate matters at any time • A public officer takes a bribe or receives a payment other than with their manager. As an alternative, staff may make a his or her wages or salary in exchange for the discharge of a disclosure of improper conduct or detrimental action, under the public duty. Act, in accordance with these procedures. • A public officer favours unmeritorious applications for positions or permits by friends and relatives. 3. Objects of the act • A public officer sells confidential information. From 1 January 2002, the Whistleblowers Protection Act 2001 facilitates and encourages the making of disclosures of improper conduct by public officers and public bodies. The Act provides protection to whistleblowers who make disclosures in 4.3 Detrimental action accordance with the Act, and establishes a system for the The Act makes it an offence for a person to take detrimental matters disclosed to be investigated and rectifying action to action against a person in reprisal for a protected disclosure. be taken. Detrimental action includes: 4. Definitions of key terms • Action causing injury, loss or damage; • Intimidation or harassment; and There are three key concepts in the reporting system. These are; • Discrimination, disadvantage or adverse treatment in relation • improper conduct, to a person’s employment, career, profession, trade or • corrupt conduct, business, including the taking of disciplinary action. • detrimental action. 4.1 Improper conduct Examples of detrimental action A disclosure may be made about improper conduct by a public • A public body refuses a deserved promotion of a person who body or public official. Improper conduct means conduct that is makes a disclosure. corrupt, a substantial mismanagement of public resources, or conduct involving substantial risk to public health or safety or to • A public body demotes, transfers, isolates in the workplace or the environment. The conduct must be serious enough to changes the duties of a whistleblower due to the making of a constitute, if proved, a criminal offence or reasonable grounds disclosure. for dismissal. • A person threatens, abuses or carries out other forms of harassment directly or indirectly against the whistleblower, 4.2 Corrupt conduct his or her family or friends. Corrupt conduct means: • A public body discriminates against the whistleblower or his • Conduct of any person (whether or not a public official) that or her family and associates in subsequent applications for jobs, adversely affects the honest performance of a public officer’s permits or tenders. or public body’s functions;

Department of Infrastructure Annual Report 2001–02 199 DOI’s Whistleblowers Protection Policy

5. The reporting system 6. Roles and responsibilities 5.1 Contact person within the Department of 6.1 All DOI employees and officers Infrastructure All DOI employees and officers are encouraged to report known Disclosures of improper conduct or detrimental action by the or suspected incidences of improper conduct or detrimental Department of Infrastructure or its employees, may be made to action in accordance with these procedures. the following: All employees of DOI have an important role to play in Protected Disclosures Coordinator supporting those who have made a legitimate disclosure. Department of Infrastructure They must refrain from any activity that is, or could be perceived Level 26, Nauru House to be, victimisation or harassment of a person who makes a 80 Collins St disclosure. Furthermore, they should protect and maintain the Melbourne 3000 confidentiality of a person they know or suspect to have made a Phone: (03) 9655 8776 disclosure. All correspondence, phone calls and emails from internal or 6.2 Protected Disclosure Coordinator external whistleblowers must be referred to the Protected The Protected Disclosure Coordinator will: Disclosure Coordinator. • Be a contact point for general advice about the operation of Where a person is contemplating making a disclosure and is the Act for any person wishing to make a disclosure about concerned about approaching the Protected Disclosure improper conduct or detrimental action; Coordinator he or she can call the Protected Disclosure Coordinator and request a meeting in a discreet location away • Receive all phone calls, emails and letters from members of from the workplace. the public or employees seeking to make a disclosure; • Make arrangements for a disclosure to be made privately and 5.2 Alternative contact discreetly and, if necessary, away from the workplace; A disclosure about improper conduct or detrimental action by • Receive any disclosure made orally or in writing (from internal the Department of Infrastructure or its employees, may also be and external whistleblowers); made directly to the Ombudsman: • Commit to writing any disclosure made orally; The Ombudsman Victoria Level 22, 459 Collins Street • Impartially assess the allegation and determine whether it is a Melbourne Victoria 3000 disclosure made in accordance with Part 2 of the Act (that is, ‘a protected disclosure’); Internet: http://www.ombudsman.vic.gov.au Email: [email protected] • Impartially assess each disclosure to determine whether it is a Phone: (03) 9613 6222 public interest disclosure; Toll Free: 1800 806 314 • Take all necessary steps to ensure the identity of the Ombudsman: Dr Barry Perry Tel: (03) 9613 6202 whistleblower and the identity of the person who is the subject of the disclosure are kept confidential; and 5.3 Making a disclosure about persons other than • Refer all public interest disclosures to the Ombudsman; DOI employees • Be responsible for carrying out, or appointing an investigator The following table sets out where a DOI employee or other to carry out, an investigation referred to the public body by person, may make a disclosure about persons other than the Ombudsman; employees of the Department of Infrastructure. • Be responsible for overseeing and coordinating an investigation where an investigator has been appointed; Person who is the Person/body to whom the • Appoint a welfare manager to support the whistleblower and to subject of the disclosure disclosure must be made protect him or her from any reprisals; Employee of a public That public body or the • Advise the whistleblower of the progress of an investigation body other than DOI Ombudsman into the disclosed matter; Member of Parliament Speaker of the Legislative • Establish and manage a confidential filing system; (Legislative Assembly) Assembly • Collate and publish statistics on disclosures made; Member of Parliament President of the Legislative • Take all necessary steps to ensure the identity of the (Legislative Council) Council whistleblower and the identity of the person who is the Councillor The Ombudsman subject of the disclosure are kept confidential; and Chief Commissioner The Ombudsman or • Liaise with the Secretary of the Department of Infrastructure. of Police Deputy Ombudsman 6.3 Investigator Member of the The Ombudsman, police force Deputy Ombudsman or The investigator will be responsible for carrying out an internal Chief Commissioner of Police investigation into a disclosure that has been made or where the Ombudsman has referred a matter to the public body. An investigator may be a person appointed from within DOI or a

200 Department of Infrastructure Annual Report 2001–02 DOI’s Whistleblowers Protection Policy

consultant engaged by the Protected Disclosures Coordinator for Documents relevant to a whistleblower matter must not be that purpose. emailed and all phone calls and meetings must be conducted in private. 6.4 Welfare manager The welfare manager is responsible for looking after the general 8. Collating and publishing statistics welfare of the whistleblower. The welfare manager will: The Protected Disclosure Coordinator will establish a secure • Examine the immediate welfare and protection needs of a register to record the information required to be published in the whistleblower who has made a disclosure and seek to foster a annual report, and to generally keep account of the status of supportive work environment; whistleblower disclosures. The register will be confidential and will not record any information that may identify the • Advise the whistleblower of the legislative and administrative whistleblower. protections available to him or her; The register will contain the following information: • Listen and respond to any concerns of harassment, intimidation or victimisation in reprisal for making disclosure; • The number and types of disclosures made to public bodies and during the year; • Ensure the expectations of the whistleblower are realistic. • The number of disclosures referred to the Ombudsman for determination as to whether they are public interest The Welfare Manager will be appointed by the Protected disclosures; Disclosure Coordinator on a case by case basis. The Department’s Employee Assistance Program may also be utilised to appoint a • The number and types of disclosed matters referred to the suitably qualified Welfare Manager independent to DOI. public body by the Ombudsman for investigation; • The number and types of disclosures referred by the public 7. Confidentiality body to the Ombudsman for investigation; The Department of Infrastructure will take all reasonable steps to • The number and types of investigations taken over from the protect the identity of the whistleblower. Maintaining public body by the Ombudsman; confidentiality is crucial in ensuring reprisals are not made against a whistleblower. • The number of requests made by a whistleblower to the Ombudsman to take over an investigation by the public body; The Act requires any person who receives information due to the handling or investigation of a protected disclosure, not to • The number and types of disclosed matters that the public disclose that information except in certain limited circumstances. body has declined to investigate; Disclosure of information in breach of section 22 constitutes an • The number and types of disclosed matters that were offence that is punishable by a maximum fine of 60 penalty units substantiated upon investigation and the action taken on ($6000) or six months imprisonment or both. completion of the investigation; and The circumstances in which a person may disclose information • Any recommendations made by the Ombudsman that relate obtained about a protected disclosure include: to the public body. • Where exercising the functions of the public body under the Act; 9. Receiving and assessing disclosures • When making a report or recommendation under the Act; 9.1 Has the disclosure been made in accordance • When publishing statistics in the annual report of a public with Part 2 of the Act? body; and Where a disclosure has been received, the Protected Disclosure • In criminal proceedings for certain offences in the Act. Coordinator will assess whether the disclosure has been made in accordance with Part 2 of the Act and is, therefore, a protected However, the Act prohibits the inclusion of particulars in any disclosure. report or recommendation that is likely to lead to the identification of the whistleblower. The Act also prohibits the 9.2 Has the disclosure been made to the identification of the person who is the subject of the disclosure in any particulars included in an annual report. appropriate person? For the disclosure to be responded to by DOI, it must concern an The Protected Disclosure Coordinator will ensure all files, whether employee or officer of DOI. If the disclosure concerns an paper or electronic, are kept in a secure room and can only be employee, officer or member of another public body, the person accessed as necessary by the investigator or welfare manager (in who has made the disclosure must be advised of the correct relation to welfare matters). All printed material will be kept in person or body to whom the disclosure should be directed. files that are clearly marked as a Whistleblower Protection Act (See the table in 5.2). If the disclosure has been made matter, and warn of the criminal penalties that apply to any anonymously, it should be referred to the Ombudsman. unauthorised divulging information concerning a protected disclosure. All electronic files will be produced and stored on a 9.3 Does the disclosure contain the essential stand-alone computer and be given password protection. Backup elements of a protected disclosure? files will be kept on floppy disc. All materials relevant to an investigation, such as tapes from interviews, will also be stored To be a protected disclosure, a disclosure must satisfy the securely with the whistleblower files. following criteria: • Did a natural person (that is, an individual person rather than a corporation) make the disclosure?

Department of Infrastructure Annual Report 2001–02 201 DOI’s Whistleblowers Protection Policy

• Does the disclosure relate to conduct of a public body or public • To collate information relating to the allegation as quickly as officer acting in their official capacity? possible. This may involve taking steps to protect or preserve • Is the alleged conduct either improper conduct or detrimental documents, materials and equipment; action taken against a person in reprisal for making a • To consider the information collected and to draw conclusions protected disclosure? objectively and impartially; • Does the person making a disclosure have reasonable grounds • To maintain procedural fairness in the treatment of witnesses for believing the alleged conduct has occurred? and the person who is the subject of the disclosure; and The Protected Disclosure Coordinator will determine whether the • To make recommendations arising from the conclusions disclosure is a protected disclosure and whether the disclosure is drawn concerning remedial or other appropriate action. a public interest disclosure. 10.2 Terms of reference Where a disclosure is assessed not to be a protected disclosure, Before commencing an investigation, the protected disclosure the matter does not need to be dealt with under the Act. coordinator will draw up terms of reference and obtain The Protected Disclosure Coordinator will decide how the matter authorisation for those terms by the chief executive officer. should be responded to. The terms of reference will set a date by which the investigation 9.4 Is the disclosure a public interest disclosure? report is to be concluded, and will describe the resources Where a disclosure has been received and determined to be a available to the investigator to complete the investigation within protected disclosure, the Protected Disclosure Coordinator will the time set. The protected disclosure coordinator may approve, determine whether the disclosure amounts to a public interest if reasonable, an extension of time requested by the investigator. disclosure. This assessment will be made within 45 days of the The terms of reference will require the investigator to make receipt of the disclosure. regular reports to the protected disclosure coordinator who, in turn, is to keep the Ombudsman informed of general progress. In reaching a conclusion as to whether a protected disclosure is a public interest disclosure, the protected disclosure coordinator 10.3 Investigation plan will consider whether the disclosure shows, or tends to show, The investigator will prepare an investigation plan for approval that the public officer to whom the disclosure relates: by the protected disclosure coordinator. The plan will list the • Has engaged, is engaging or proposes to engage in improper issues to be substantiated and describe the avenue of inquiry. conduct in his or her capacity as a public officer; or It will address the following issues: • Has taken, is taking or proposes to take detrimental action in • What is being alleged? reprisal for the making of the protected disclosure. • What are the possible findings or offences? If the protected disclosure coordinator concludes that the • What are the facts in issue? disclosure amounts to a public interest disclosure, he or she will: • How is the inquiry to be conducted? 1. Notify the person who made the disclosure of that conclusion; • What resources are required? and At the commencement of the investigation, the whistleblower 2. Refer the disclosure to the Ombudsman for formal determination should be: as to whether it is indeed a public interest disclosure. • Notified by the investigator that he or she has been appointed If the protected disclosure coordinator concludes that the to conduct the investigation; disclosure is not a public interest disclosure, he or she will: • Asked to clarify any matters; and 1. Notify the person who made the disclosure of that conclusion; and • Provide any additional material he or she might have. 2. Advise that person that he or she may request the public body to The investigator will be sensitive to the whistleblower’s possible refer the disclosure to the Ombudsman for a formal fear of reprisals and will be aware of the statutory protections determination as to whether the disclosure is a public interest provided to the whistleblower. disclosure, and that this request must be made within 28 days of the notification. 10.4 Natural justice The principles of natural justice will be followed in any In either case, the protected disclosure coordinator will make the investigation of a public interest disclosure. The principles of notification and the referral within 14 days of the conclusion natural justice concern procedural fairness and ensure a fair being reached by the public body. Notification to the decision is reached by an objective decision maker. Maintaining whistleblower is not necessary where the disclosure has been procedural fairness protects the rights of individuals and made anonymously. enhances public confidence in the process. 10. Investigations The Department will have regard to the following issues in ensuring procedural fairness: 10.1 Introduction • The person who is the subject of the disclosure is entitled to Where the Ombudsman refers a protected disclosure to DOI for know the allegations made against him or her and must be investigation, the protected disclosure coordinator will appoint given the right to respond. (This does not mean the person an investigator to carry out the investigation. must be advised of the allegation as soon as the disclosure is The objectives of an investigation will be: received or the investigation has commenced);

202 Department of Infrastructure Annual Report 2001–02 DOI’s Whistleblowers Protection Policy

• If the investigator is contemplating making a report adverse to • The allegation/s: the interests of any person, that person should be given the • An account of all relevant information received and, if the opportunity to put forward further material that may investigator has rejected evidence as being unreliable, the influence the outcome of the report and that person’s defence reasons for this opinion being formed; should be fairly set out in the report; • The conclusions reached and the basis for them; and • All relevant parties to a matter should be heard and all submissions should be considered; • Any recommendations arising from the conclusions. • A decision should not be made until all reasonable inquiries If the investigator has found that the conduct disclosed by the have been made; whistleblower has occurred, recommendations made by the investigator will include: • The investigator or any decision maker should not have a personal or direct interest in the matter being investigated; • The steps that need to be taken by the Department to prevent the conduct from continuing or occurring in the future; and • All proceedings must be carried out fairly and without bias. Care should be taken to exclude perceived bias from the • Any action that should be taken by the Department to remedy process; and any harm or loss arising from the conduct. This action may include bringing disciplinary proceedings against the person • The investigator must be impartial in assessing the credibility responsible for the conduct, and referring the matter to an of the whistleblowers and any witnesses. Where appropriate, appropriate authority for further consideration. conclusions as to credibility should be included in the investigation report. The report will be accompanied by: • The transcript or other record of any oral evidence taken, 10.5 Conduct of the investigation including tape recordings; and The investigator will make contemporaneous notes of all • All documents, statements or other exhibits received by the discussions and phone calls, and all interviews with witnesses will officer and accepted as evidence during the course of the be taped. All information gathered in an investigation will be investigation. stored securely. Interviews will be conducted in private and the investigator will take all reasonable steps to protect the identity Where the investigator’s report is to include an adverse comment of the whistleblower. Where disclosure of the identity of the against any person, that person will be given the opportunity to whistleblower cannot be avoided, due to the nature of the respond and his or her defence will be fairly included in the allegations, the investigator will warn the whistleblower and his report. or her welfare manager of this probability. The report will not disclose particulars likely to lead to the It is in the discretion of the investigator to allow any witness to identification of the whistleblower. have legal or other representation or support during an 11.2 Action to be taken interview. If a witness has a special need for legal representation or support, permission should be granted. If the Protected Disclosure Coordinator is satisfied that the investigation has found that the disclosed conduct has occurred, 10.6 Referral of an investigation to the Ombudsman he or she will recommend to the Secretary to the Department The protected disclosure coordinator will make a decision the action that must be taken to prevent the conduct from regarding the referral of an investigation to the Ombudsman continuing or occurring in the future. The protected disclosure where, on the advice of the investigator: coordinator may also recommend that action be taken to remedy any harm or loss arising from the conduct. • The investigation is being obstructed by, for example, the non-cooperation of key witnesses; or The protected disclosure coordinator will provide a written report to the DOI Ministers, the Ombudsman and the whistleblower • The investigation has revealed conduct that may constitute a setting out the findings of the investigation and any remedial criminal offence. steps taken. 10.7 Reporting requirements Where the investigation concludes that the disclosed conduct did The protected disclosure coordinator will ensure the not occur, the protected disclosure coordinator will report these whistleblower is kept regularly informed concerning the handling findings to the Ombudsman and to the whistleblower. of a protected disclosure and an investigation. 12. Managing the welfare of the The protected disclosure coordinator will report to the whistleblower Ombudsman about the progress of an investigation. Where the Ombudsman or the whistleblower requests 12.1 Commitment to protecting whistleblowers information about the progress of an investigation, that DOI is committed to the protection of genuine whistleblowers information will be provided within 28 days of the date of the against detrimental action taken in reprisal for the making of request. protected disclosures. The protected disclosure coordinator is responsible for ensuring whistleblowers are protected from direct 11. Action taken after an investigation and indirect detrimental action, and that the culture of the 11.1 Investigator’s final report workplace is supportive of protected disclosures being made. At the conclusion of the investigation, the investigator will The protected disclosure coordinator will appoint a welfare submit a written report of his or her findings to the protected manager to all whistleblowers who have made a protected disclosure coordinator. The report will contain: disclosure. The welfare manager will:

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• Examine the immediate welfare and protection needs of a 12.4 Whistleblowers implicated in improper conduct whistleblower who has made a disclosure and, where the If a person who makes a disclosure is implicated in misconduct, whistleblower is an employee, seek to foster a supportive the Department will handle the disclosure and protect the work environment; whistleblower from reprisals in accordance with the Act, • Advise the whistleblower of the legislative and administrative the Ombudsman’s guidelines and these procedures. protections available to him or her; DOI acknowledges that the act of whistle blowing should not • Listen and respond to any concerns of harassment, shield whistleblowers from the reasonable consequences flowing intimidation or victimisation in reprisal for making disclosure; from any involvement in improper conduct. Section 17 of the Act specifically provides that a person’s liability for his or her • Keep a contemporaneous record of all aspects of the case own conduct is not affected by the person’s disclosure of that management of the whistleblower including all contact and conduct under the Act. However, in some circumstances, an follow-up action; and admission may be a mitigating factor when considering • Ensure the expectations of the whistleblower are realistic. disciplinary or other action. All employees will be advised that it is an offence for a person to The Secretary will make the final decision on the advice of the take detrimental action in reprisal for a protected disclosure. Protected Disclosure Coordinator as to whether disciplinary or The maximum penalty is a fine of 240 penalty units ($24,000) other action will be taken against a whistleblower. Where or two years imprisonment or both. The taking of detrimental disciplinary or other action relates to conduct that is the subject action in breach of this provision can also be grounds for making of the whistleblower’s disclosure, the disciplinary or other action a disclosure under the Act and can result in an investigation. will only be taken after the disclosed matter has been Detrimental action includes: appropriately dealt with. • Causing injury, loss or damage; In all cases where disciplinary or other action is being contemplated, the Secretary to the DOI must be satisfied that it • Intimidation or harassment; and has been clearly demonstrated that: • Discrimination, disadvantage or adverse treatment in relation • The intention to proceed with disciplinary action is not to a person’s employment, career, profession, trade or causally connected to the making of the disclosure (as business (including the taking of disciplinary action). opposed to the content of the disclosure or other available 12.2 Keeping the whistleblower informed information); The protected disclosure coordinator will ensure the • There are good and sufficient grounds that would fully justify whistleblower is kept informed of action taken in relation action against any non-whistleblower in the same to his or her disclosure, and the time frames that apply. circumstances; and The whistleblower will be informed of the objectives of an • There are good and sufficient grounds that justify exercising investigation, the findings of an investigation, and the steps any discretion to institute disciplinary or other action. taken by the Department to address any improper conduct that The Protected Disclosure Coordinator will thoroughly document has been found to have occurred. The whistleblower will be the process including recording the reasons why the disciplinary or given reasons for decisions made by the Department in relation other action is being taken, and the reasons why the action is to a protected disclosure. All communication with the not in retribution for the making of the disclosure. The protected whistleblower will be in plain English. disclosure coordinator will clearly advise the whistleblower of the 12.3 Occurrence of detrimental action proposed action to be taken, and of any mitigating factors that have been taken into account. If a whistleblower reports an incident of harassment, discrimination or adverse treatment that would amount to 13. Management of the person against detrimental action taken in reprisal for the making of the disclosure, the welfare manager will: whom a disclosure has been made The Department recognises that employees against whom • Record details of the incident; disclosures are made must also be supported during the • Advise the whistleblower of his or her rights under the Act; handling and investigation of disclosures. The Department will and take all reasonable steps to ensure the confidentiality of the • Advise the Protected Disclosure Coordinator or the Secretary person who is the subject of the disclosure during the to the DOI of the detrimental action. assessment and investigation process. Where investigations do not substantiate disclosures, the fact that the investigation has The taking of detrimental action in reprisal for the making of a been carried out, the results of the investigation, and the identity disclosure can be an offence against the Act as well as grounds of the person who is the subject of the disclosure will remain for making a further disclosure. Where such detrimental action is confidential. reported, the protected disclosure coordinator will assess the report as a new disclosure under the Act. Where the protected The protected disclosure coordinator will ensure the person who disclosure coordinator is satisfied that the disclosure is a public is the subject of any disclosure investigated by or on behalf of a interest disclosure, he or she will refer it to the Ombudsman. public body is: If the Ombudsman subsequently determines the matter to be a • Informed as to the substance of the allegations; public interest disclosure, the Ombudsman may investigate the • Given the opportunity to answer the allegations before a final matter or refer it to another body for investigation as outlined in decision is made; the Act.

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• Informed as to the substance of any adverse comment that may be included in any report arising from the investigation; and has • His or her defence set out fairly in any report. If the allegations in a disclosure have been investigated, and the person who is the subject of the disclosure is aware of the allegations or the fact of the investigation, the protected disclosure coordinator will formally advise the person who is the subject of the disclosure of the outcome of the investigation. DOI will give its full support to a person who is the subject of a disclosure where the allegations contained in a disclosure are clearly wrong or unsubstantiated. If the matter has been publicly disclosed, the Secretary of the Department of Infrastructure will consider any request by that person to issue a statement of support setting out that the allegations were clearly wrong or unsubstantiated. 14. Criminal offences The Department will ensure staff appointed to handle protected disclosures and all other employees are aware of the following offences created by the Act: 1. It is an offence for a person to take detrimental action against a person in reprisal for a protected disclosure being made. The Act provides a maximum penalty of a fine of 240 penalty units ($24,000) or two years imprisonment or both. 2. It is an offence for a person to divulge information obtained as a result of the handling or investigation of a protected disclosure without legislative authority. The Act provides a maximum penalty of 60 penalty units ($6,000) or six months imprisonment or both. 3. It is an offence for a person to obstruct the Ombudsman in performing his responsibilities under the Act. The Act provides a maximum penalty of 240 penalty units ($24,000) or two years imprisonment or both. 4. It is an offence for a person to knowingly provide false information under the Act with the intention that it be acted on as a disclosed matter. The Act provides a maximum penalty of 240 penalty units ($24,000) or two years imprisonment or both. 15. Review These procedures will be reviewed annually to ensure they meet the objectives of the Act and accord with the Ombudsman’s guidelines.

Department of Infrastructure Annual Report 2001–02 205 Directory

Principal offices and agencies Department of Infrastructure 80 Collins Street, Melbourne Victoria Australia 3000 Telephone (03) 9655 6666 Internet www.doi.vic.gov.au International +61 3 9655 6666 Facsimile (03) 9655 6752 International (03) + 61 3 9655 6752 Postal address PO Box 2797Y, Melbourne Victoria Australia 3001

Regional Offices North West Metropolitan 499 Ballarat Road, Sunshine 3020 Telephone (03) 9313 1307 Facsimile (03) 9313 1316 South East Metropolitan 12 Lakeside Drive, East Burwood 3151 Telephone (03) 9881 8895 Facsimile (03) 9881 8820 Eastern Region 120 Kay Street, Traralgon 3844 Telephone (03) 5172 2677 Facsimile (03) 5174 2799 Northern Region 57 Lansell Street, Bendigo 3550 Telephone (03) 5434 5150 Facsimile (03) 5434 5157 North Eastern Region 50-52 Clarke Street, Benalla 3672 Telephone (03) 5761 1857 Facsimile (03) 5762 7870 South Western Region 180 Fyans Street, South Geelong 3220 Telephone (03) 5225 2521 Facsimile (03) 5225 2514 Western Region 88 Learmonth Road, Wendouree 3355 Telephone (03) 5333 8790 Facsimile (03) 5333 8796

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