[3] PURPOSE, AIMS AND ORGANISATIONAL VALUES PURPOSE, AIMS AND ORGANISATIONAL PURPOSE, AIMS AND ORGANISATIONAL VALUES

PURPOSE VicRoads purpose is to serve the community and contribute to the social, economic and environmental development of and by managing the Victorian road network and its use as an integral part of the overall transport system. AIMS >> Achieve ongoing reductions in the number and severity of road crashes and the resultant cost of road trauma. >> Assist economic and regional development by managing and improving the effectiveness and efficiency of the road transport system. >> Facilitate greater integration of road-based public transport with other transport modes to maximise choice, accessibility, safety and reliability for all users. >> Minimise the impact of roads and traffic on the community and enhance the environment through responsible planning and management of the transport system. >> Build effective, equitable and efficient relationships with all customers by providing them with convenient access to services that meet their needs and enable VicRoads to deliver cost-effective services to the community. ORGANISATIONAL VALUES >> We put our customers’ and stakeholders’ needs first >> We develop as individuals and contribute as members of a team >> We are open, honest and fair >> We take pride in our success and continuous improvement >> We take responsibility for our actions >> We take a commercial approach to our service delivery [4]

BELOW: VICTORIAN MINISTER FOR TRANSPORT, MR PETER BATCHELOR, LETTER TO OPENS THE $3.1M PARK AND RIDE THE MINISTER IN DONCASTER.

THE HONOURABLE PETER BATCHELOR MP MINISTER FOR TRANSPORT LEVEL 26, NAURU HOUSE 80 COLLINS STREET VICTORIA 3000

Dear Minister

VicRoads 2002–03 Annual Report

I have much pleasure in submitting to you, for your presentation to Parliament, the annual report of the Roads Corporation (VicRoads) for the period 1 July 2002 to 30 June 2003.

Yours sincerely

David Anderson CHIEF EXECUTIVE [5] ABOUT VICROADS

ABOUT VICROADS

VicRoads is the registered business name of the Roads Major Projects is responsible for managing the implementation Corporation, a statutory corporation within the Victorian of designated major infrastructure projects, developing Government infrastructure portfolio. environmental management policies, and developing major VicRoads serves the community by managing the Victorian projects to address and secure the necessary planning and road system and its use as an integral part of the overall environmental approvals. transport network. Commercial Services provides technical, information and engineering services to VicRoads and other organisations In 2002–03, the organisation had an annual program expenditure on a fully commercial basis. These services include land (both capital and recurrent) of $1.3bn and collected approximately information and survey, materials technology, road and $2.2bn for the State Government and the Transport Accident bridge design, bituminous surfacing, international project Commission through licensing, registration and other fees. co-ordination, property acquisition, building and facilities VicRoads has some 2300 staff who work in partnership with other management, publishing and graphics and business information. government agencies, local government and the private sector to Organisation Support is a group of business areas that support provide cost-effective products and services to the community. management of the corporation as a whole. The areas include VicRoads has four core businesses – Road System Management, contract services, corporate planning, corporate publications, Traffic and Road Use Management, Road Safety, and Registration media and events, legal counsel, executive services and the and Licensing – which provide a clear focus for the provision corporate secretariat. of its services. To reflect VicRoads emphasis on the State VicRoads provides its services to the Victorian Government’s aim to create a fully integrated transport system, community through a statewide network of offices and Traffic and Road Use Management will change to Traffic and agencies. The network comprises seven regional offices Transport Integration on 1 July 2003. located at Burwood East and Sunshine in metropolitan The Business Operations Division comprises the four core Melbourne, and in , Benalla, , business departments. It is responsible for developing policy and in regional Victoria; 38 registration and recommendations, program strategies and purchasing services. licensing offices; seven project offices; telephone It also includes three departments that provide corporate-wide information services (located in Kew and Ballarat); financial, human resources and information technology and and the Traffic Management Centre. telecommunications services. Registration and licensing services are also provided at Regional Services is responsible for delivering annual selected locations through approximately 1500 agents programs to meet core business goals and for managing including municipalities, Australia Post, Westpac, Bank of services provided on a regional basis. Programs are delivered Melbourne, Challenge Bank, pharmacies and Shell Touch through seven regions and one support group, using contractors kiosks, and through telephone and internet services such as and some in-house service providers. POSTbillpay® and Bpay. [6]

HIGHLIGHTS

ECONOMIC SOCIAL >> The opening of the 6.5 km Carlsruhe section of the Calder >> Following the devastating bushfires of summer 2003, VicRoads Freeway in April 2003 provided the final link in a continuous helped to rebuild communities in eastern and north-eastern freeway between Keilor and Kyneton on this strategic route Victoria by managing the re-opening of roads. During the connecting Melbourne with Bendigo, Mildura and southern bushfires, VicRoads regions installed variable message signs, New South Wales. monitored road closures, repaired roads, removed thousands of >> The Murchison East Deviation on the Goulburn Valley damaged and dangerous trees, assisted municipalities to assess Highway was opened to traffic almost 11 months early, fire damage and allowed staff time off to work with the delivering safer and more effective travel for road users by Country Fire Authority. VicRoads also co-ordinated information bypassing a number of dangerous spots on the old route. on the cost of replacing damaged infrastructure. Tougher speed enforcement by Victoria Police in metropolitan >> The $270m upgrade of the Geelong Road was completed >> and opened to traffic, ensuring a safer and more Melbourne, the Transport Accident Commission’s Wipe Off .5 comfortable journey for commuters, commercial vehicles advertising campaign and the development of the safety camera program by VicRoads, the Department of Justice and recreational travellers. and Victoria Police, contributed to the 83 lives that were >> Following the upgrading of 14 bridges in 2002–03, saved in Victoria in 2002–03 compared with the previous approximately 98 per cent of Victoria’s arterial road network is year. As part of the Victorian Government’s arrive alive! now accessible to high productivity freight vehicles. road safety strategy, these initiatives, as well as the effect of >> The Easy Merge–Safer Flow traffic management system is the blackspot projects completed under the Statewide being progressively installed at suitable freeway entrances, to Blackspot Program, had a significant impact on the improve safety and reduce travel times for road users. road toll. >> Reduced speed limits (from 60 km/h to 50 km/h) were implemented in 59 locations in rural townships and outer metropolitan activity centres by May 2003. >> The State Government’s Responsible Driving Package that introduced tougher penalties for drink driving, speeding and other unsafe practices, was implemented by VicRoads and Victoria Police to improve road safety outcomes for Victorians. > > > > > > > V POSSIBLE WITHTHEOPENINGOFMURCHISONEASTDEVIATION ONTHEGOULBURN SERVICES AT THENEWHOPPERSCROSSINGOFFICE LINING THEGREAT ALPINEROAD(B500)BETWEENBRUTHENANDOMEO KEILOR ANDKYNETON THE CARLSRUHESECTIONOFCALDERFREEWAY PROVIDESTHEFINALLINKBETWEEN OUTER METROPOLITAN ACTIVITYCENTRES HIGHWAY > > > > > > > ALLEY HIGHWAY remainder werewelladvanced. target of a20percentreduction overthree years. cent in2002–03. ThisexceedstheVictorian Government’s to reducethenumber ofstandardWorkCover claimsby28per 2002, isoneofa numberofinitiativesthatenabled VicRoads The VicRoads SafetyManagement System,launched inJuly licensing services. the fullrangeofVicRoads vehicleregistration anddriver C The newregistrationandlicensing office openedatHoppers issue inruralVictoria. V V of motorcyclecrasheswascommenced. and a$1.1mprogramtotreatlocationswithhighincidence A MotorcycleRoadSafetyStrategy2002–07wasdeveloped practices inroadtransport. the transportchain,notjustdrivers,accountableforunlawful responsibility willimproveroadsafetybymakingallpartiesin responsibility’ fortheroadtransportindustry. Thechain of and searchpowerstosupportenforcementofthe‘chain of V a zerobloodalcoholreadingbeforetheirvehiclewillstart. certain re-licenseddrinkdrivers,requiringthesedriverstorecord V Government’s Program, 1006werecompletedaspartoftheVictorian Of the1115projectsapprovedforStatewideBlackspot ictoria’s first alcoholinterlockswereinstalledinthevehiclesof rossing inAugust 2002,improvingcustomeraccess to ictorian CountryFootball Leaguetotacklethedrinkdriving icRoads formedapartnershipwithRoadSafeandthe ictoria wasthefirst statetointroduce lawsfornewinspection . A CUSTOMERENJOYSIMPROVEDACCESSTOREGISTRATION ANDLICENSING . A 50KM/HSPEEDLIMITNOWFEATURES INRURALTOWNSHIPSAND . arrive alive! ABORIGINAL ARTEFACTS ARECOLLECTEDONTHEPRINCES road safetystrategy, andthe . NEW LIFEBURSTSFROMBURNTEUCALYPTS . SAFER TRAVEL HASBEENMADE . > > > > > ENVIRONMENTAL > > > > > the Australian InstituteofLandscape Architects won theprestigious‘Transport and Infrastructure’ categoryin The designfortheBlack Forest sectionoftheCalder Freeway arterial cyclingnetwork. 2002–03 thatenabledafurther500 kmtobeaddedVictoria’s $15m tobicyclelanesandpaths with a$6mallocationfor The StateGovernmentcompleted itsfirst termcommitmentof 17 monthsearlyand$10munderbudget. be openedtotraffic inJuly 2003, the bypasswillbecompleted quality forcreeksandriversflowingintoPort PhillipBay. To habitat fornativewildlifeandachievinghighstandardwater to treatstormwaterthatrunsofftheroadsurface,protecting The Hallam Bypass wasthefirst majorroadprojectinVictoria largest culturalheritagearchaeologicaldigsites. commencement ofroadworks,makingthisoneVictoria’s betweenStratfordandBairnsdalepriortothe More than44,000aboriginalartefactswerecollectedonthe Y In accordancewithanagreementestablishedtheYorta land fromaroadprojecthadbeenreservedinthisway. community. Thiswasthefirst timeinVictoria thatremnant significant historicandculturalvaluetothelocalindigenous hectares wasreservedasaculturalheritagezonebecauseofits , anareaofapproximately13 Landscape Architecture Awards orta peoplefortheMurchison EastDeviationProjectonthe for Victoria andTasmania. 2002

LEFT HALLAM BYPASS

PHOTO COURTESY OF THE RACV [ 7

HIGHLIGHTS ] [8]

CHIEF EXECUTIVE’S

STATEMENT CHIEF EXECUTIVE ANDERSON DAVID

VicRoads recorded significant progress this year against each of The new Road Safety (Heavy Vehicle Safety) Bill 2003 the five priority issues set out in our Corporate Plan 2002–04: will contribute to road safety by making all parties in the road safety, economic and regional development, transport transport chain accountable for unlawful transport practices, integration, liveable communities and serving the community. and VicRoads has given priority to informing the transport Together these achievements represent a real contribution to the industry of its implications. Government in its long-term development strategy Growing Victoria Together. TRANSPORT INTEGRATION ROAD SAFETY Contributions to transport integration – a priority area for the State Government – included the completion and opening by the Victoria’s road toll fell by 12 per cent this year from the average of Minister for Transport of Victoria’s first park and ride facility and the previous three years. The Government’s arrive alive! road the appointment of the Victorian Road Based Public Transport safety strategy and the near completion of the $240m, three-year Advisory Council to advise VicRoads and the Minister on bus, Statewide Blackspot Program have both significantly contributed to the reduction. tram and taxi matters and to foster relationships between road based public transport users. ECONOMIC AND REGIONAL DEVELOPMENT VicRoads will address the transport objectives of the A key objective for VicRoads is to assist economic and regional Government’s Melbourne 2030 strategy through the development development by improving the effectiveness and efficiency of the of the Metropolitan Road and Traffic Management Strategy, to road transport system. During the year major road projects such provide direction for the management of Melbourne’s arterial as the Murchison East Deviation on the Goulburn Valley roads and traffic. Highway and the Carlsruhe section of the were completed and the Hallam Bypass is well ahead of schedule. LIVEABLE COMMUNITIES VicRoads has been targeting increasingly busy freight routes in To minimise the impact of roads and traffic on the community order to lower road transport operating costs and improve road a number of initiatives were undertaken. Examples include safety. Approximately 98 per cent of the arterial road network is 50 km/h speed limits in 59 locations in rural townships and outer now accessible to high productivity vehicles due to the metropolitan activity centres and treatment of pollutants in storm replacement or upgrading of more than 180 bridges since 1985. water run off on the Hallam Bypass. [9] CHIEF EXECUTIVE’S STATEMENT

SERVING THE COMMUNITY IMPROVING OUR EFFECTIVENESS Many customers prefer to access VicRoads services through one This year we implemented our Great People–Smart Services of our 38 registration and licensing offices located throughout human resources strategy. Its key objectives include helping staff Victoria. However, increasingly customers are choosing to use the improve the match between their career and life needs and internet to do business with us. This trend has been most VicRoads business needs, and ensuring they have the skills to obvious for registration and licensing transactions (particularly address four key areas identified in our Corporate Plan: listening the use of credit card facilities). While 87 per cent of customers to the community; working with others; getting things done and surveyed this year said they were satisfied with our service improving our capabilities. delivery, we are committed to the ongoing development of both I believe we have made good progress in each of these areas in our face-to-face and online services so that they are more 2002–03, while recognising that further progress is necessary and accessible to all. attainable. I would like to thank all staff for embracing the directions set down in the 2002-04 Corporate Plan, enabling IMPORTANT CHALLENGES VicRoads to continue building on its strong record of delivering VicRoads successfully responded to a range of important services to the Victorian community. challenges during the year. These included the State I would also like to acknowledge the valuable advice provided by Government’s commitment to a full program of infrastructure members of the VicRoads Advisory Board, the Victorian Road projects, more stringent environmental standards and the adverse Freight Advisory Council, the Victorian Bicycle Advisory Council, impact crude oil prices had on our very large maintenance the Victorian Motorcycle Advisory Council and the Victorian Road program. Higher land prices also affected road construction costs. Based Public Transport Advisory Council. The bushfires of January 2003 presented us with another challenge and I would like to take this opportunity to acknowledge the contributions of Regional Services staff and contractors. Many worked long hours, at times when their own homes were at risk, to help communities of eastern and north- David Anderson eastern Victoria. CHIEF EXECUTIVE [10] [11] ROAD SYSTEM MANAGEMENT MANAGING AND IMPROVING VICTORIA’S ROADS MANAGING AND IMPROVING VICTORIA’S AND IMPROVES THE CONDITION PERFORMANCE OF VICTORIA’S VICROADS MAINTAINS ON ROADS AND MANAGES 5071 BRIDGES MAJOR CULVERTS 22,262 KM OF ARTERIAL ECONOMIC DEVELOPMENT AND SOCIAL AMENITY BY ROADS. THIS SUPPORTS ARTERIAL COSTS AND PROVIDING SAFE EFFICIENT REDUCING TRAVEL IMPROVING ACCESSIBILITY, ROAD CONDITIONS. ROAD SYSTEM MANAGEMENT

LEFT: THE COLOURFUL PROSPECT HILL ROAD PEDESTRIAN BRIDGE IS AN APPEALING FEATURE ON THE HALLAM BYPASS. RIGHT: GRASSES (ABOUT 30 CM HIGH) ARE PLANTED ON THE SIDES OF THE HALLAM BYPASS TO HELP CLEAN WATER RUN-OFF. THE PEDESTRIAN BRIDGE NEAR THE ROD LAVIN RESERVE FEATURES IN THE BACKGROUND. [12]

ROAD SYSTEM MANAGEMENT

VicRoads, in partnership with local government, is responsible A total of 750 major culverts and bridges and 154 major sign for the management of Victoria’s arterial road network. This structures were inspected during 2002–03, which provided network provides the state’s principal routes for private and information to assist in allocating priorities for future bridge commercial travel and on-road public transport and contributes and gantry maintenance. Inspections of noise barriers have to the community by increasing the safety, efficiency and comfort now commenced. of road travel and reducing travel times, fuel usage and pollution. NATURAL DISASTER DAMAGE The arterial road network comprises 22,262 km of roads and VicRoads assists the Department of Treasury and Finance to 5071 bridges and major culverts currently valued at approximately assess local government claims for relief in response to natural $16 billion. This network includes freeways, state highways, disaster damage to local roads. During 2002–03, funding for this tourists’ roads and forest roads that are directly managed by natural disaster damage relief amounted to $1 million. Additional VicRoads, as well as main roads that are usually managed by local relief funds were allocated for repairs to arterial roads following government to standards set by VicRoads. the 2003 summer bushfires in eastern and north-eastern Victoria. The bushfires caused $3.1m damage to 11 arterial roads and four MAINTAINING THE ROAD NETWORK bridges, with an additional cost of $1.6m estimated for other VicRoads delivers road maintenance programs in accordance with recovery works including tree removal and making roadside the Stitch in Time, Roadside Management and Victoria’s Bridges embankments safe. The State Government provided a special grant strategies to maximise the life of its road assets. of $3.42m to supplement normal maintenance funding. This enabled damaged infrastructure to be restored to use very quickly. ROAD AND BRIDGE MAINTENANCE During the bushfires of early 2003, VicRoads assisted the During 2002–03, VicRoads and municipal councils maintained 50,720 rebuilding of communities in northern and north-eastern lane kilometres of highways, tourists’ roads, forest roads and main Victoria by managing the re-opening of roads. roads. The total cost of state-funded arterial road and bridge VicRoads installed variable message signs, monitored road maintenance was $180.9 million. The following results were achieved: closures, repaired roads, removed trees, assisted municipalities >> Maintenance of road pavements and surfacing to the value to assess fire damage and allowed volunteer staff time off of $143.6 million. This amount provided for 3224 lane to work with the Country Fire Authority. kilometres of smoother, waterproof resurfacing and 600 lane VicRoads also co-ordinated information on the cost of replacing kilometres of rehabilitation by way of reconstruction or major damaged infrastructure. patching, upgrading 8.2 per cent of rural arterial roads and 5.8 per cent of urban arterial roads. ROAD NETWORK DEVELOPMENT >> Maintenance works on bridges and major culverts, including Major new developments in the arterial road network are driven significant repairs to 379 bridges, at a cost of $12.4 million. by the Victorian Government’s $5bn Linking Victoria transport strategy. The strategy focuses on infrastructure investment that >> Maintenance of road reserves at a cost of $22.3m, including will achieve a revitalised, integrated transport system for Victoria. protecting and improving roadside plantations, litter collection and control of vermin and noxious weeds. During 2002–03, $325m was invested by the Victorian and Federal Governments through VicRoads for this purpose. Of this amount, A contribution totalling $2.6m towards maintaining Murray >> $220m was derived from State Government sources and $105m was River Bridges (shared 50/50 with the New South Wales Roads contributed by the Federal Government. and Traffic Authority), roads in national parks and snow clearing in alpine areas. MULTICULTURAL COMMUNICATIONS VicRoads consults with all sections of the community on major MONITORING ROAD AND BRIDGE CONDITIONS developments to the road network, including groups with special VicRoads monitors the condition of arterial roads and bridges cultural or language needs. with particular attention given to busy freight routes, to achieve There are agreed protocols for consultation between VicRoads and the economic benefits of lower road transport operating costs and local aboriginal communities and stakeholders. Agreements to protect increased road safety. cultural heritage and the environment have also been developed with Targeted maintenance of road infrastructure has substantially the Dja Dja Wrung and Wurundjeri groups, the Yorta Yorta Nation improved the conditions of Victoria’s roads over the past decade. and Gippsland and East Gippsland Aboriginal Co-operative Ltd. Since the implementation of Victoria’s Bridges in 1995, more than Strategies for involving groups with Non-English speaking 180 bridges have been replaced or upgraded to carry large freight backgrounds include multilingual brochures, translation of key vehicles, 14 of them in 2002–03. This means that approximately messages in written communications and presentations to 98 per cent of the arterial road network is now accessible to high cultural groups with the aid of an interpreter. These are being productivity vehicles. widely used on the Craigieburn Bypass project. [13] ROAD SYSTEM MANAGEMENT PHOTO COURTESY OF THE RACV PHOTO COURTESY

ABOVE: THE IS RE-OPENED AFTER THE DEVASTATING 2003 SUMMER BUSHFIRES. RIGHT: FOURTEEN BRIDGES HAVE BEEN UPGRADED OR REPLACED THIS YEAR TO IMPROVE SAFETY AND ACCESSIBILITY FOR HIGH PRODUCTIVITY VEHICLES. FAR RIGHT: TRUCKS USE THE NEW 18 KM SECTION OF ROAD BETWEEN WAHRING AND MOORILIM ON THE GOULBURN VALLEY HIGHWAY.

MAJOR DEVELOPMENT PROJECTS CALDER FREEWAY, CALDER HIGHWAY (M79, A79) Work continued on developing two major sections of this key GEELONG ROAD () regional highway and monitoring wildlife design features on The final section of the Geelong Road project opened to traffic the Black Forest section of the Woodend Bypass. in November 2002. >> Carlsruhe section Improvements to the road were opened a little less than three The 6.5 km Carlsruhe section was opened to traffic on years after the first contract was awarded. The safer and wider 16 April 2003, 10 months ahead of schedule. The $46m route has four lanes each way from beyond the Western Ring project provides the final link in a continuous freeway Road (M80) to the new Werribee exit. Between Werribee and between Keilor and Kyneton. Corio the freeway has been totally reconstructed with three lanes >> Kyneton to Ravenswood each way, wide sealed shoulders, more VicRoads Help Phones Work continued on the planning studies and land acquisition and median safety barriers. for the $330m section from Kyneton to Ravenswood. A The project also involved planting many thousands of native trees Supplementary Environment Effects Statement is being and shrubs and landscaping to include features such as the prepared for the section near Harcourt. The Minister for patterned African animal screens adjacent to Victoria’s Open Planning has completed an assessment for the section near the Range Zoo at Werribee. Metcalfe State Forest. Planning approval has been received for the remainder of the route between Kyneton and Ravenswood. The Geelong Road project was a Road of National Importance A contract for construction of 2.5 km of highway duplication project, completed with $150m in State Government funding and north of the Kyneton Bypass was awarded in May 2003. $120m provided by the Federal Government. >> Woodend Bypass – monitoring of fauna underpasses GEELONG BYPASS Monitoring carried out by La Trobe University showed that Following the completion of the Geelong Ring Road Strategic between July 2002 and March 2003 more than 100 wildlife Study in October 2002, detailed route investigations and planning species used the Slaty Creek fauna underpasses built on the works began for the future Geelong Bypass. This will run to the Black Forest section of the Woodend Bypass. This information west of Geelong from the existing freeway terminal at Corio to will assist VicRoads to continue to improve wildlife corridor the Princes Highway at Waurn Ponds. design associated with major capital works. [14]

LEFT: THE CARLSRUHE SECTION OF THE CALDER FREEWAY CREATES A CONTINUOUS FREEWAY BETWEEN KEILOR AND KYNETON.

EASTERN FREEWAY GOULBURN VALLEY HIGHWAY (M39, A39) Freeway construction works between Springvale Road and Park >> Murchison East Deviation Road are on schedule for completion by mid-2004. Landscaping The 18 km section of road between Wahring and Moorilim and ongoing maintenance of areas around the Deep Creek Road was opened to traffic on 18 February 2003, almost bridge has commenced, including seed collection, plant 11 months early. This $88.9m project bypasses the notorious propagation and weed management. T-intersection and rail level crossing at Murchison East as well – HALLAM BYPASS (M1) as other narrow bridge sites and reduces the travel distance The 7.5 km Hallam Bypass extending the Monash Freeway from between Melbourne and Shepparton by almost 4 km. Doveton to the Princes Highway at Berwick is to be opened on Wildlife protection at Pranjip Creek 27 July 2003. The Pranjip Creek wildlife corridor near Moorilim is home to The project will be completed 17 months early and at a cost of an extensive range of native fauna and flora. To ensure it $165m, a saving of $10m to the Victorian community. Effective continued to thrive unaffected by project construction, a series collaboration with the community was a significant factor in the of environmental best practice measures were implemented. project’s success. A fauna fence was installed at the creek and along the edge of the freeway to prevent koalas and other native fauna from Water sensitive road design crossing the freeway at road level and to encourage them to The Hallam Bypass is the first major road project in Victoria to cross underneath the Pranjip Creek bridges. A 12 m Gabion treat storm water that runs off the road surface. This water will wall (rocks encased in wire mesh), one of the highest of its pass through natural filtration systems to remove particles such type in Australia, was constructed parallel to the freeway to as oil, metals and litter prior to entering waterways. This specially retain the fill material for the bridge and prevent it from designed biological system, which combines wetlands and spreading over sensitive creek landscape. vegetated open drains, provides important habitat for native wildlife and achieves the best possible water quality in local >> Nagambie Bypass creeks and rivers. Three alignment options to the east of Nagambie have been developed for the Nagambie Bypass. They will be placed on PAKENHAM BYPASS public display in 2004. The Pakenham Bypass will provide an important link between Gippsland and Melbourne and significantly improve safety and >> Shepparton Bypass access to local community facilities, particularly for the townships In late 2002, the Federal Government endorsed a western of Pakenham and Officer. The $242m, 20 km project, involves alignment for the Shepparton Bypass. It is expected that the construction of a four-lane freeway between the Princes Freeway Planning Scheme Amendment will be finalised by early 2004. at Beaconsfield and Nar Nar Goon. This will enable pre-construction works to begin when During 2002–03, work focussed on obtaining environmental and funding becomes available. planning clearances. In April 2003, an information centre was >> Strathmerton Bypass established in Pakenham to encourage community input into the In June 2003, the Federal Government endorsed the planning process. recommended alignment for the future bypass of With the assistance of the Shire of Cardinia, City of Casey, Strathmerton, north-west of the township. The bypass government agencies and the local community, an Environment reservation should be incorporated into the local planning Effects Statement was prepared for exhibition in July 2003. scheme by early 2004. [15] ROAD SYSTEM MANAGEMENT

LEFT: LOW FLOOR TRAMS AND KERB ACCESS STOPS MAKE GETTING ON AND OFF TRAMS EASIER ON ROUTE 109.

HUME HIGHWAY (M31) ecological vegetation classes present at the Koonwarra >> Albury/Wodonga National Highway Project construction site. This creative solution meant that active The Federal Minister for Transport and Regional Services management (including fencing off and weed control) will result announced in December 2002 that the bypass of in a gain of 2.9 hectares of native vegetation. Albury/Wodonga would revert from the external route to the TRAM 109 PROJECT original internal alignment. The Tram 109 Project forms part of the State Government’s strategy VicRoads is working closely with the New South Wales Roads to increase public transport use in Melbourne. Funded under the and Traffic Authority (RTA) and the Federal Government to Linking Victoria transport strategy, it will improve safety, overall tram complete this 17.4 km section of the between travel time and reliability and provide easy tram access for all users. Ettamogah, north of Albury, to Lincoln Causeway in Wodonga. The project includes direct government works managed by Tenders are expected to be called late in 2003 and contracts VicRoads and works managed by Yarra Trams under its franchise awarded in early 2004. The project should be completed before agreement with the State Government. Works completed by the end of 2006. VicRoads include the following: Developing and constructing a new type of tram stop (kerb CRAIGIEBURN BYPASS >> access stop) on the Box Hill extension of the route. These Construction of the 17 km Craigieburn Bypass commenced in stops provide access to the new low floor trams without the May 2002, with approximately 15 per cent of works being completed by the end of 2002–03. The $306m project is being need to negotiate steps, making them fully accessible to all funded by the Federal Government. members of the community including children, the elderly, parents with prams and those with mobility impairments. The Craigieburn Bypass and Environs Co-ordination Group, Safety is also enhanced by eliminating the need for tram which involves several government departments and the users to cross traffic lanes when getting on and off trams. Merri Creek Management Committee, has been overseeing environmental management on the bypass and the development >> Tram and road improvements outside the new Victoria of the proposed Merri Creek regional park. Gardens development in Victoria Street, Abbotsford, to provide a central reservation for the exclusive use of trams. To protect cultural heritage sites and collect artefacts, cultural heritage monitoring protocols were developed with the Wurundjeri people. This improves safety and reduces tram delays. Kerb access tram stops have been constructed at River Boulevard and A community relations program involved local people in Burnley Street. developing features such as noise barriers, landscaping and a shared pathway. This established channels for two-way LINKING THE SUBURBS communication between VicRoads and the public, and together VicRoads continued to address road improvement needs in the with the Local Community Advisory Group provided avenues for rapidly growing urban and industrial areas in outer metropolitan Melbourne. addressing community issues. The following road improvement projects valued at $64m were (A420) completed in 2002–03: During the development of the alignment of the South Gippsland >> Hutton Road, from Springvale Road to Perry Road Highway at Koonwarra, VicRoads and the South Gippsland >> Swansea Road, from Anderson Street to York Road Landcare Network developed an arrangement under which VicRoads provided the network with funding for six approved >> , from The Regency to Sydenham Railway Landcare projects in the area. These projects involve native crossing (two projects) vegetation of the same or higher conservation significance as the >> Pascoe Vale Road, from Coleraine Street to Somerton Road [16]

>> Reynolds Road, from Andersons Creek Road to Springvale Road. WORKING TOGETHER FOR THE FUTURE Progress was made on the following projects: PRIORITIES FOR FUTURE FEDERAL FUNDING >> High Street Road, from Mimosa Street to Cathies Lane In 2002–03, the Federal Government contributed $138m to >> Eltham-Yarra Glen Road from Cemetery Road to Alma Road develop and maintain roads classified as national highways and >> Edgars Road from Kingsway Drive to Cooper Street. Roads of National Importance (RONI). The total estimated cost of these continuing projects is $28 million. In its annual submission for Federal funding, the Victorian Government restated the critical importance of the following BETTER ROADS VICTORIA PROGRAM ‘missing links’ in the national road network: The Better Roads Victoria program provided $290m for road and bridge improvements in 2002–03. Since the program began in >> Construction of the Deer Park National Highway link between 1993, a total of 960 projects valued at more than $2bn has been the Western Highway and the Western Ring Road. This will approved, 104 in the metropolitan area and 856 in regional facilitate direct access to Melbourne’s ports for both local and Victoria, representing a significant contribution to Victoria’s interstate produce road system. >> Upgrading the Goulburn Valley National Highway to During 2002–03, the following major projects continued to Shepparton by 2008, through the completion of design receive Better Roads Victoria funding: activities for the Moorilim to Arcadia section in 2003–04 Construction of the Geelong Western Bypass (RONI) >> Eastern Freeway Extension from Springvale Road to Park Road >> Construction of the Pakenham Bypass (RONI) >> Hallam Bypass >> Completion of the upgrading of the Calder Highway >> Calder Highway: Carlsruhe section and Kyneton to >> Ravenswood section. to Bendigo (RONI). Other significant projects to receive Better Roads Victoria funding Each of these will not only address safety, in what are the lower this year included: standard sections of the principal highway network, but will also unlock the full potential of previous investments. >> Upgrading of Cooper Street Epping to two lanes each way from Yale Drive to the Hume Highway In its submission, the State Government also reiterated its previous request that the Princes Highway East and Princes Safety improvements on the from Heywood to >> Highway West be declared Roads of National Importance. south of McKenzies Creek The National Road program achieved a number of major Improving the alignment of the alternative route to the >> milestones during the year. Apart from those described earlier, Princes Highway East, between Bairnsdale and Nowa Nowa notable achievements were: (via Bruthen) Completion of a deviation of the Western Highway (M8, A8) Strengthening or replacement of 31 bridges on the rural >> >> and rail grade separation at Armstrong, to replace the poor arterial road network, for which Better Roads Victoria alignment of the highway through the former rail underpass provided $13 million Completion of safety improvement works on the Western Ring $8.5m provided for 46 projects to assist municipalities in the >> >> Road (M80). upgrading of rural local roads affected by issues of state or regional significance, such as routes used for carting timber. FEDERATION FUND WORKING TOGETHER FOR THE FUTURE The Federal Government is providing funding capped at $44m towards new bridges across the Murray River at Echuca ($15m), RURAL ARTERIAL ROAD NETWORK STRATEGY Corowa ($12m) and Robinvale ($17m). Victoria’s Minister for The Rural Arterial Road Network Strategy provides a framework Planning has announced the preferred route for the Echuca for managing freeways, highways, main roads and tourists’ roads crossing, which is being managed by VicRoads. The New South in country Victoria. Development of 22 highway management Wales Roads and Traffic Authority (RTA) is managing projects to strategies has been a major focus in 2002–03. replace the bridges at Corowa and Robinvale. PROPOSED ROAD MANAGEMENT BILL In October 2002 the Victorian Government announced plans to ENVIRONMENT establish a more modern, flexible and effective legislative Victoria contains many areas of rich cultural and environmental framework for road management. The Department of Victorian value. The management and protection of these areas is integral Communities and VicRoads developed a position paper on the to VicRoads operations. The policies and guidelines that assist proposed Road Management Bill, which was released for public VicRoads meet its cultural environmental objectives can be discussion on 1 May 2003. viewed on the website at www.vicroads.vic.gov.au [17] ROAD SYSTEM MANAGEMENT

LEFT: THE PEDESTRIAN BRIDGE NEAR THE ROD LAVIN RESERVE ON THE HALLAM BYPASS. BELOW: EUCALYPT TREES HAVE BEEN RETAINED BETWEEN THE BRIDGES ON THE BLACK FOREST SECTION OF THE WOODEND BYPASS. MORE THAN 100 WILDLIFE SPECIES USE THE SLATY CREEK FAUNA UNDERPASSES.

ENVIRONMENTAL INCIDENTS This is a summary of the environmental incidents registered in VicRoads systems in 2002–03. The incidents are reported by the level of severity of their on-site and off-site impacts (1 = low to 4 = high).

CATEGORY LEVEL OF SEVERITY

INCIDENTS % 1 2 3 4 Air pollution – other 1 4 1 Cultural heritage – unexpected discovery 1 4 1 Cultural heritage – unplanned disturbance 1 4 1 Flora/fauna – unplanned disturbance 5 18 3 2 Material disposal/storage 1 4 1 Road spill/material deposit 3 12 1 2 Soil contamination – unexpected discovery 1 4 1 Water pollution – other 3 12 1 2 Water pollution – sediment 9 34 4 4 1 Water pollution – solid debris 1 4 1 Total 26 100 12 9 5 0

POLLUTION ABATEMENT NOTICES (PANS) PANs are issued by the Environment Protection Authority to For more examples of how VicRoads has been listening to the rectify or avoid situations involving pollution. No PANs were community to reduce the impact of road maintenance and issued to VicRoads and/or its contractors during 2002–03. construction on the environment, see ‘Project Consultation’ and ‘Indigenous Communities’ in the ‘Improving our Effectiveness’ ROADSIDE MANAGEMENT PLANS (RMPS) chapter of this report. This is a measure of the length of VicRoads managed roads ENVIRONMENTAL PERFORMANCE INDICATORS that have Roadside Management Plans (RMPs) developed as at June 2003. RMPs are documents that identify existing vegetation Project Environmental Protection Strategies (PEPS) and and the approach required to manage utility services, fire Community Consultation Plans (CCPs). prevention and the maintenance of vegetation within the roadside. This is a measure of the number of PEPS and CCPs developed for contracts with a value greater than $1m awarded in 2002–03. ROADSIDE MANAGEMENT PLANS (RMPS) RMPS 2002–03

TOTAL PROJECTS WITH Length of road directly managed 11,731 HIGH ENVIRONMENTAL SENSITIVITY by VicRoads (km) RMPs completed (km) 9007 Number of contracts > $1m 40 6 Number of PEPS prepared 18 6 % of roads covered by RMPs 77 N.B. THE FIGURES INCLUDE A NUMBER OF RMPS THAT WERE REVISED DURING 2002–03. Number of CCPs prepared 11 5 [18]

ROAD SYSTEM MANAGEMENT PERFORMANCE REPORTING IN 2002–03

PERFORMANCE MEASURE UNIT OF MEASUREMENT 2002–03: TARGET 2002–03: ACTUAL

Item Road pavement maintained lane kilometre 50,720 50,720 Structures treated number 361 379 Pavement treatments including resurfacing square metres 14,200 14,093 and strengthening Quality Network > 4.2 IRI* Regional percentage 10.6 10.6** Metro 12.9 12.9** Network > 5.3 IRI Regional percentage 2.7 2.7** Metro 4.6 4.6** Smooth travel Regional percentage 92 92** Metro 91 91** Bridges mass Regional percentage 3 3 limited Metro 3 3 Bridges in very Regional percentage 3.4 3.4 poor condition Metro 1.4 1.4 Timeliness Programmed maintenance percentage 100 100 * IRI IS THE INTERNATIONAL ROUGHNESS INDEX * IRI IS THE INTERNATIONAL ONLY ** ESTIMATE

FIVE-YEAR STATISTICAL SUMMARY

SMOOTH-TRAVEL EXPOSURE UNIT 1998–99 1999–2000 2000–01 2001–02 2002–03 % of travel on roads with roughness < 4.2 IRI* All roads % 90 90 91 90 91** Urban roads % 89 89 90 89 91** Rural roads % 92 92 92 92 92** Return on construction % of projects with expenditure benefit cost ratios 48 74 70 70 69 greater than 3 Road System Maintenance Roads maintained: Km 21,240 21,236 21,230 21,275 21,252 State funded Roads maintained: Km 1010 1004 1004 1007 1010 national highways Bridges maintained: Number 2500 2540 2550 2560 2568 State funded Bridges maintained: Number 352 355 355 366 366 national highways Resealing: State funded % of sprayed 9.3 8.8 8.9 8.3 6.7 sealed work

Rehabilitation: State funded % of network 1.2 1 1 1.3 1.2 ROUGHNESS INDEX * IRI IS THE INTERNATIONAL ONLY ** ESTIMATE [19] ROAD SYSTEM MANAGEMENT

CONSTRUCTION PROJECTS COMPLETED DURING 2002–03 VALUED OVER $5M

COMPLETION DATE * TOTAL ESTIMATED COST

PROJECT FORECAST ACTUAL ORIGINAL ** CURRENT $M $M

BASS HIGHWAY Duplication stage three, Bay Road to Gurdies May 03 Nov 02 15.5 13.5

BRUTHEN-NOWA NOWA ROAD Widening and alignment improvements May 03 Apr 03 7.9 7.1

CALDER HIGHWAY Freeway construction, Carlsruhe section Feb 04 Apr 03 50.0 46.0

CALDER HIGHWAY Shoulder sealing, Chinkapook-Mittyack Road to Yelta Jun 02 Aug 02 10.3 9.4

GOULBURN VALLEY HIGHWAY Murchison East Deviation Dec 03 Feb 03 94.3 88.9

HUTTON ROAD Duplication, Springvale Road to Perry Road Oct 02 Mar 03 6.0 7.4

MELTON HIGHWAY Duplication at rail crossing at Sydenham Mar 02 Dec 02 4.9 6.1

MELTON HIGHWAY STAGE TWO Duplication, Railway to The Regency Mar 02 Dec 02 13.9 16.6

MONASH FREEWAY Wire rope barriers, Power Road to May 03 Apr 03 5.8 5.1

PASCOE VALE ROAD Duplication Riggal Street to Somerton Road Mar 03 Mar 03 14.3 15.4

PRINCES HIGHWAY WEST Geelong Road Jul 02 Nov 02 270.0 270.0

SOUTH GIPPSLAND HWY Long Waterhole Bridge replacement, Longford May 03 Mar 03 7.0 7.0

SWANSEA ROAD Duplication, Lilydale Monbulk Road to York Road Nov 02 Dec 02 10.3 14.0

WEST GATE FREEWAY Bridge strengthening for additional lane Feb 02 Aug 02 5.0 10.0

WESTERN RING ROAD Safety improvement works (State funded) Jun 02 Dec 02 5.4 5.5

WESTERN RING ROAD Safety improvement works (Federally funded) Jun 02 Dec 02 12.0 13.8

WESTERN HIGHWAY WHEN CONSTRUCTION FUNDING IS APPROVED. * IS WHEN THE PROJECT OPEN TO TRAFFIC. COMPLETION DATE

Realignment and bridge construction, Armstrong Jun 03 Jun 03 12.9 12.9 PROJECT COST COST IS THE ESTIMATED ESTIMATED ** ORIGINAL TOTAL [20] [21] TRAFFIC AND ROAD USE MANAGEMENT EFFICIENT AND ORDERLY MOVEMENT OF TRAFFIC EFFICIENT AND ORDERLY VICROADS IS RESPONSIBLE FOR ACHIEVING EFFICIENT AND ORDERLY MOVEMENT OF ROAD USERS AND FREIGHT THROUGH IMPROVED TRAFFIC FLOW AND REDUCED CONGESTION. TRAFFIC AND ROAD USE MANAGEMENT

LEFT: COMMUTERS ENJOY FASTER AND MORE RELIABLE JOURNEY TIMES ON ROUTE 109, WHICH RUNS FROM PORT MELBOURNE TO MONT ALBERT. LOW FLOOR TRAMS, SUPERSTOPS AND KERB ACCESS STOPS ARE ALL PART OF THE FIRST STAGE IN MAKING VICTORIA’S TRAM NETWORK ACCESSIBLE TO ALL. RIGHT: CYCLISTS EXPERIENCE THE BENEFITS OF AN EXTENDED BICYCLE NETWORK IN MELBOURNE, WHICH GREW BY 85 KM THIS YEAR. [22]

TRAFFIC AND BELOW: COMMUTERS ALONG THE EASTERN FREEWAY ARE NOW TAKING ROAD USE ADVANTAGE OF VICTORIA’S FIRST ‘PARK AND RIDE’ BY SAVING TWO HOURS MANAGEMENT A WEEK IN TRAVEL TIME AND HELPING REDUCE POLLUTION.

VicRoads manages the road network and its use as an integral >> Use of Smart Bus technology to provide a clear bus passage at part of the overall road transport system. This involves the Bulla Road and English Street on-ramps and bus priority establishing priorities among competing demands on the various turning lanes at a number of city intersections. parts of the network, taking account of the State Government’s strategies such as Melbourne 2030. Benefits to road users include ROAD BASED PUBLIC TRANSPORT lower vehicle operating costs, improved safety and more STANDARDS AND GUIDELINES predictable travel times. VicRoads developed guidelines for a new traffic management SAFER, MORE EFFICIENT TRAFFIC FLOW program to deliver faster, more reliable journey times for buses, trams and taxis on the arterial road network. Preliminary EASY MERGE–SAFER FLOW service standards were established for the program to The Easy Merge–Safer Flow system on the outbound entrance to commence in 2003–04. the Eastern Freeway at Thompsons Road has reduced travel time delays during conjested peak flow between and NEW TRAFFIC MODEL Doncaster Road by 60 per cent. Similar systems have been In conjunction with the Department of Infrastructure and the installed on the outbound entrances to the Monash Freeway at City of Melbourne, VicRoads is developing an integrated Warrigal and Huntingdale Roads. The Warrigal Road facility transport model for the central area of Melbourne. The model includes a truck and bus priority lane which uses the emergency will allow road authorities to examine the effects of changes to stopping lane when the Easy Merge–Safer Flow lights are the road network in the central city at a level of detail not operating. previously available. This will allow users to examine how The system uses traffic lights to manage the rate at which individual intersections or groups of intersections are working. vehicles merge with freeway traffic, to make freeway travel easier, It will be linked to the strategic planning models that deal with safer and more reliable. It will be progressively installed on other the entire metropolitan area. suitable freeway entrances in Melbourne. SMART BUS EVALUATION TRAVEL AND TRAFFIC INFORMATION SYSTEMS The Smart Bus project implemented by VicRoads for the TRAFFIC MANAGEMENT CENTRE Department of Infrastructure on Springvale Road and Blackburn The Traffic Management Centre (TMC), formerly known as the Road in 2001–02 was evaluated in 2002–03. Traffic Control and Communication Centre, was successfully The project gave buses priority at 34 signalised intersections relocated from Camberwell to VicRoads head office in Kew. along the route to improve service reliability, and electronic signs The relocation was achieved without disruption to the centre’s at stops displaying bus arrival times. round-the-clock service to road users. The evaluation identified increased patronage of nearly 20 per The new facility has upgraded telephone and radio cent on weekdays and more than 75 per cent on weekends. communications facilities, resulting in improved services to the community such as more rapid responses to incidents affecting SKYBUS TRAVEL TIME IMPROVEMENTS traffic flow and driver safety and better management of calls from Works undertaken by VicRoads have halved the Sky Bus Super freeway help phones. Shuttle travel time to 20 minutes for the trip between and Spencer Street Station. The works involved: During 2002–03, the TMC handled more than 250,000 calls from the public and the media. >> Minor widening of the at Essendon Airport to allow Sky Bus to use the emergency stopping lanes during peak hours [23] TRAFFIC AND ROAD USE MANAGEMENT

BELOW: VICROADS TRAFFIC MANAGEMENT CENTRE, WHICH IS NOW LOCATED IN KEW, RAPIDLY RESPONDS TO INCIDENTS AFFECTING TRAFFIC FLOW AND DRIVER SAFETY.

INTELLIGENT TRANSPORT SYSTEMS ROAD FREIGHT EFFICIENCY VicRoads continued to deploy intelligent transport systems on VicRoads continued to support initiatives to improve the efficiency and Victoria’s freeways and arterial roads to improve safety and traffic safety of the road transport industry. Highlights for 2002–03 included: flow. Systems introduced in 2002–03 include: >> Testing of load restraint methods for logs, followed by >> New generation, hands-free, vandal-resistant help phones production of the information bulletin A Guide to Restraining for freeways Logs and Timber, in consultation with the timber industry, the >> High visibility electronic speed limit signs for school zones Transport Workers Union, Victorian Transport Association, and variable speed zones on freeways. Victorian Worker Cover Authority and the National Road Transport Commission. VicRoads commissioned the testing in EMERGENCY VEHICLE PRIORITY response to concerns about insecure loading raised at a VicRoads, with the assistance of Victoria Police, Metropolitan number of regional road freight forums held by the Victorian Ambulance Service and Metropolitan Fire Brigade, commenced Road Freight Advisory Council. a trial to provide priority at traffic signals for emergency Parliament passed the Road Safety (Heavy Vehicle Safety) services vehicles. >> Bill 2003 in June 2003. The legislation will contribute to overall The trial involves an approaching emergency vehicle sending a road safety through stronger enforcement of heavy vehicle priority request to the traffic signal controller by means of an ‘chain of responsibility’ offences. This means that all parties in invisible ‘strobing’ light. The trial is being carried out in the the transport chain, not just drivers, are accountable for Moorabbin/East Bentleigh area with transmitters fitted to a range unlawful practices in transport. The chain of responsibility is a of emergency vehicles. cornerstone of national compliance and enforcement reforms and Victoria is the first jurisdiction in Australia to introduce the new enforcement powers. [24]

BELOW: PRIORITY BICYCLE ROUTES IN REGIONAL VICTORIA HAVE BEEN EXTENDED BY 125 KM THIS YEAR. FAMILIES CAN ALSO PLAN BIKE TRIPS BY VISITING BIKE MAPS LOCATED ON THE VICROADS WEBSITE AT WWW.VICROADS.VIC.GOV.AU

BICYCLE PROGRAMS PEDESTRIAN IMPROVEMENTS VICTORIA’S CYCLING NETWORK More than $1m was spent this year to improve facilities to This year’s $6m program completed the State Government’s first enhance the safety and movement of pedestrians. term commitment of $15m for bicycle lanes and paths, extending Twelve pedestrian crossings were upgraded in metropolitan and Victoria’s arterial cycling network by a total of 500 km. regional Victoria. Other significant projects in regional Victoria The 2002–03 bicycle facilities program added 85 km to included the installation of a pedestrian refuge island on Wangaratta-Yarrawonga Road in Wangaratta and the installation Melbourne’s principal bicycle network and 125 km to regional of pedestrian-operated signals at two locations along LaTrobe Victoria’s priority bicycle routes. Projects included: Terrace in Geelong. In the Melbourne metropolitan area, >> Marking 5 km of bicycle lanes along The Strand and Douglas significant pedestrian projects included the installation of Parade between Williamstown and Footscray pedestrian-operated signals on Main Street in Belgrave and on >> Constructing a 6 km shared path between Daylesford and Rooks Road in Nunawading. Hepburn Springs PEOPLE WITH DISABILITIES >> Completing bicycle lanes along and Point The program of works designed to assist people with disabilities to Nepean Road at Frankston, Dromana and Rye use the road system, including public transport services, continued. >> Marking 3.6 km of bicycle lanes in Balwyn Road and Bulleen More than 300 projects were completed during the year at a cost of Road approximately $3 million. They included installing audio tactile >> Marking bicycle lanes and paths in regional centres including devices, wheelchair detectors and traffic signals that adjust crossing Ballarat, Benalla, Bendigo, Colac, Echuca, Geelong, La Trobe time to ensure pedestrians are able to cross the road safely. City, Mildura, Phillip Island, Portland, Sale, Shepparton, Swan All project work has been developed in close consultation with Hill, Wangaratta, Warrnambool and Wodonga. disability groups and municipal councils. [25] TRAFFIC AND ROAD USE MANAGEMENT

BELOW: A NEW ‘SMART’ PEDESTRIAN CROSSING IN ROOKS ROAD, NUNAWADING, USES SENSORS TO DETECT WHEN PEDESTRIANS ARE ON THE CROSSING.

PERFORMANCE REPORTING

FIVE YEAR STATISTICAL SUMMARY

1998–99 1999–2000 2000–01 2001–02 2002–03 Traffic delay: Melbourne am peak min/km 0.69 0.70 0.69 0.74 0.73 pm peak min/km 0.56 0.55 0.56 0.63 0.59 Variability of travel time: Melbourne am peak +/- % 19.5 17.4 19.6 24.0 21.2 pm peak +/- % 16.9 15.8 18.4 19.1 17.3 Actual travel speed: urban am peak km/h 37.8 37.5 37.9 36.7 36.8 pm peak km/h 41.1 41.4 41.2 39.3 40.3 Bicycle program Bicycle facilities constructed: Statewide km 37 95 120 195 210 [26] [27] ROAD SAFETY IMPROVING ROAD SAFETY REDUCTION IN THE NUMBER VICROADS AIMS TO ACHIEVE A SUSTAINABLE AND SEVERITY OF ROAD CRASHES THE COST TRAUMA ALL ROAD TARGET THROUGH DELIVERING ROAD SAFETY PROGRAMS THAT USERS INCLUDING DRIVERS, MOTORCYCLISTS, CYCLISTS AND PEDESTRIANS.

ROAD SAFETY

ABOVE: PEDESTRIAN SAFETY WAS ENHANCED THIS YEAR WITH THE INTRODUCTION OF A 50 KM/H SPEED LIMIT AT 59 LOCATIONS IN RURAL TOWNSHIPS AND OUTER METROPOLITAN ACTIVITY CENTRES. [28]

ROAD SAFETY

VicRoads is a key player in the Victorian Government’s five year DRINK DRIVING arrive alive! road safety strategy to reduce Victoria’s road toll. In May 2003, the first alcohol interlocks were installed in the vehicles The strategy outlines 17 key challenges to provide Victoria with a of certain re-licensed drink drivers in Victoria. The alcohol interlock safer road system, change road user behaviour, improve vehicle safety requires drivers to record a zero blood alcohol reading before their and deliver improved outcomes for all Victorians. The aim is to vehicle will start. Program guidelines and administration systems reduce deaths and injuries on Victoria’s roads by 20 per cent by 2007. have been put in place in support of the new program. In 2002–03, Victoria’s road toll fell 12 per cent below the average TRAFFIC SAFETY EDUCATION PROGRAMS of the previous three years. Traffic safety education activities in 2002–03 included: SAFER ROAD USERS >> Completion of the Traffic Safety Education Action Plan Victoria SPEED MANAGEMENT 2002–07 in July 2002 As part of the Government’s Linking Victoria transport strategy, >> Completion of the Saferoads Early Years Presentation Resource, $23m was committed to the arrive alive! School Speed Zones which supports actions to educate the community about the program announced in November 2002. The program will correct use of child restraints improve the safety of Victoria’s 818,000 students by reducing speed limits outside every school in the State. VicRoads >> Launch of the Starting Out Safely program to assist parents developed guidelines and an implementation plan for the and carers educate children aged six months to four years to program which is expected to be completed by November 2004. be safe passengers and pedestrians. During 2002–03, VicRoads worked with the Department of DRUGS AND DRIVING Justice and Victoria Police to further develop the safety camera VicRoads continued to work with the Australian Drug Foundation installation program. The program included: to develop and distribute information on drugs and driving for >> The installation of safety cameras on the Western Ring Road users of medications and illicit drugs and for health >> Commencement of installation of safety cameras on the West professionals. VicRoads also investigated the technology Gate Freeway and Geelong Road, safety/red light cameras at and practical feasibility for roadside drug screening. more than 80 intersections throughout the State and safety FATIGUE cameras on the Hume Highway for completion in the second It is estimated that fatigue is a factor in more than 30 per cent half of 2003 that could also be used for point-to-point of casualty crashes that occur in Victoria. VicRoads conducted operation if appropiate legislation were to be adopted. fatigue awareness campaigns targeting young drivers, shift >> The introduction of tougher speed enforcement measures by workers and heavy vehicle drivers throughout the State, Victoria Police. supported the Driver Reviver program on major roads and These initiatives, combined with more intensive enforcement by supported research into sleep disorders among heavy vehicle Victoria Police and the Transport Accident Commission’s (TAC) drivers at the Austin Hospital. Wipe Off 5 advertising campaign have contributed to the fall in the road toll in the metropolitan area during 2002–03 (78 fewer YOUNG DRIVERS deaths than in the preceding year). During 2002–03, VicRoads implemented the following programs targeting young drivers, who are those with the highest crash risk RESPONSIBLE DRIVING PACKAGE of any age group: The Responsible Driving Package was introduced by the Government to strengthen deterrence of unsafe driver >> More than 24,000 parents and learner drivers attended 260 behaviour, particularly speeding and serious drink driving. Keys Please information sessions, exceeding the program target. These sessions, organised by VicRoads, Victoria Police The package included: and Community Road Safety Councils across Victoria, are >> Tougher licence suspension penalties for excessive speeding aimed at learner and pre-learner drivers (and their parents) and provide information and advice to assist them in Revised demerit points to better reflect risks for speeding offences >> obtaining the necessary on road experience before they obtain >> Immediate licence suspension for serious drink driving a licence. Keys Please was also extended to Non-English >> Introduction of demerit points for a number of existing speaking audiences this year. offences, including using a hand-held mobile phone while >> The interactive L site (www.lsite.vicroads.vic.gov.au) for learner driving. drivers was enhanced. The site attracted around 4000 visits per VicRoads provided research and advice in support of these month and received positive feedback from users. important initiatives, and implemented the necessary changes to >> VicRoads continued to develop programs to encourage increases licensing systems. in the amount of practice undertaken by learner drivers. [29] ROAD SAFETY

BELOW: CHILDREN AT BROADFORD’S LITTLE HANDS PRE-SCHOOL WITH THINGLETOODLE, THE ROAD SAFETY CHARACTER CENTRAL TO THE STARTING OUT SAFELY PROGRAM.

OLDER DRIVERS MOTORCYCLE SAFETY During 2002–03, to address older driver issues, VicRoads: Motorcycles currently account for about three per cent of all >> Redeveloped the Victorian Older Drivers’ Handbook (3rd Edition) vehicles registered in Victoria and less than one per cent of road travel. Despite this, motorcyclists and pillion passengers Contributed to redeveloping the national publication Assessing >> accounted for 11 per cent of road fatalities in 2002–03. This Fitness to Drive: Medical Standards for Licensing and Clinical compared with 14 per cent in 2001–02. Management Guidelines To address motorcycle trauma, VicRoads: >> Enhanced the content and marketing strategy for the Safe Drive Medical Seminar for health professionals and conducted >> Developed a Motorcycle Road Safety Strategy 2002–07, three seminars which identifies proposed actions under eight key issues >> Presented Safe Drive Seminars and tailored presentations to >> Commenced development and implementation of programs clubs and community groups. Safe Drive was also presented worth $1.1m which were endorsed by the Victorian Motorcycle in Vietnamese to address the needs of that community in the Advisory Council to treat locations with a high incidence of City of Maribyrnong motorcycle crashes, as part of the TAC’s $50 motorcycle levy. >> Developed and distributed the local government resource >> Commissioned Monash University Accident Research Centre Keeping Older Drivers Safe and Mobile to municipalities. to assist in developing hazard perception training for Eleven municipalities have implemented this element of the motorcyclists. SafeRoads local government program to date. During the year, nine municipalities implemented the Make Motorcycling Safer program, an element of the SafeRoads program. [30]

BELOW: BOB ABEYSEKERA, VEHICLE SAFETY OFFICER, CHECKING A VEHICLE’S IDENTITY PLATE AS PART OF AN INSPECTION.

PEDESTRIAN SAFETY INQUIRY INTO RURAL ROAD SAFETY AND INFRASTRUCTURE In 2002–03, pedestrians comprised around 11 per cent of deaths VicRoads co-ordinated the preparation of the whole-of- and 11 per cent of serious injuries on Victorian roads. More than 30 Government response to the Parliamentary Road Safety per cent of pedestrians killed have a blood-alcohol concentration Committee Inquiry into Rural Road Safety and Infrastructure. (BAC) above .05, with the majority more than 0.15. Evidence The response was tabled in Parliament in October 2002. It indicates that the skills necessary to cross a road safely are indicated actions already undertaken, and proposed to be taken, diminished at a BAC of .08 and above. to address recommendations to improve road safety in rural VicRoads implemented the following initiatives in 2002–03 to Victoria. VicRoads has commenced implementation of actions improve pedestrian safety: that fall within its jurisdiction. >> A resource kit to assist local government to tackle the issue of RAIL LEVEL CROSSING IMPROVEMENTS intoxicated pedestrians that will be implemented in 2003–04 VicRoads, VicTrack and the Office of the Director of Public >> A pilot program to reduce speed limits from 60 km/h to Transport continued to implement the $3m program to 50 km/h at 59 locations in rural townships and outer improve the safety of level crossings. Nine upgrades were completed in 2002–03, three of them involving the installation metropolitan activity centres of pedestrian gates. >> Identification of 14 metropolitan strip shopping centres where 40 km/h speed limits will be installed during times of high SAFER VEHICLES pedestrian activity. Vehicle design and operating condition play an important part in protecting road users. During 2002–03, VicRoads promoted MULTICULTURAL COMMUNICATIONS vehicle safety through the following activities. VicRoads continued to provide a range of road safety initiatives to assist various ethnic communities, through the use of brochures MONITORING OF LICENSED VEHICLE TESTERS and education programs. Approximately 2500 licensed vehicle testers provide roadworthiness testing in Victoria. Monitoring activities SAFER ROADS in 2002–03 included: BLACKSPOT PROGRAMS >> Issuing approvals for 162 new licensed vehicle testers and An additional 201 projects forming part of the $240m Statewide 139 additional premises for existing licensed vehicle testers Blackspot Program were approved by the Minister for Transport. >> Conducting 1455 random site audits and 228 single vehicle The Program, which commenced in early 2000, is now fully and 36 multiple vehicle audit investigations. committed. It provided funding for 1115 projects, 1006 of which Results of the investigations were as follows: are completed, and the balance well advanced. >> Licences suspended 52 The current Federally-funded National Black Spot Programme Licences cancelled 6 commenced in July 2002. It will operate for four years during >> which Victoria is expected to receive approximately $42 million. >> Warnings issued 1 Victoria’s approved program for 2002–03 comprised 65 projects Fifteen education conferences were conducted for licensed (41 in metropolitan and 24 in rural areas) valued at $12.6 million. vehicle testers throughout Victoria during the year. Federal Government approval for these projects was received in September 2002. Forty-three projects were completed and a further 10 projects were in the process of being implemented at the end of June 2003. [31] ROAD SAFETY

AUSTRALIAN DESIGN RULES COMPLIANCE INSPECTIONS PROMOTING PARTNERSHIPS In 2002–03, 63 inspections for the Commonwealth Department The arrive alive! strategy is being implemented by VicRoads in of Transport and Regional Services were conducted on a full conjunction with Victoria Police, the Transport Accident cost recovery basis, to ensure new vehicle models comply with Commission and the Department of Justice. VicRoads also works the Australian Design Rules. with other road safety stakeholders to improve road safety. VEHICLE IDENTITY VALIDATION SYSTEM SAFEROADS LOCAL GOVERNMENT ROAD SAFETY INITIATIVE Field support was provided to a network of 39 private Vehicle SafeRoads is an initiative to improve road safety for local Identity Validation (VIV) inspectors, who were also audited. The communities. It is a partnership between the Municipal VIV system provides a means of identifying a vehicle to prevent Association of Victoria, Local Government Professionals, VicRoads, the transfer of registration or ownership of stolen or illegally Victoria Police, the Transport Accident Commission and Royal imported vehicles. Automobile Club of Victoria. VEHICLE ASSESSMENT SIGNATORY SCHEME Highlights of 2002–03 were as follows: The Victorian Vehicle Assessment Signatory Scheme provides for >> Three additional municipalities received funding to develop a accreditation of vehicle engineers who may certify that imported or road safety strategy. To date, 77 of the 79 municipalities have modified vehicles comply with the State’s vehicle regulations. During received funding and 51 have completed strategies and 2002–03, the number of Scheme signatories increased from 24 to 37. commenced implementation NATIONAL VEHICLE REGULATORY PROCESS >> Thirty-seven municipalities received funding to implement The national vehicle regulations, which are administered by the multi-action programs tackling key road safety issues National Road Transport Commission, refer to more than 70 Australian Design Rules. >> VicRoads was involved in organising the second SafeRoads Conference – Turning Plans into Action – which was attended During 2002–03, VicRoads continued to promote the development of new Australian Design Rules for speedometer by more than 400 delegates from local government and accuracy and under run barriers for heavy vehicles. Australian community groups Design Rules for both these items are expected to be >> A SafeRoads risk management package – Is Your Council at implemented in late 2003. Risk? – was developed and distributed to all municipalities. OCCUPANT PROTECTION The package provides case studies to alert local governments In 2002–03, Victoria made a major financial contribution to of the potential road safety risks to which they are exposed. the Australian New Car Assessment and the Used Car Crash CORPORATE ROAD SAFETY INITIATIVE Ratings programs. VicRoads distributed brochures, which The Safer Driving Kit was launched in late 2002 to improve summarised crash test results for the most popular compact workplace driver and vehicle safety in both public and private 4WDs and large cars in Australia. An updated brochure with sector organisations in Victoria. The kit contains a range of crash ratings for more than 200 older vehicle models was educational resources to help organisations develop safer driving also distributed. policies, monitor crash rates, purchase safer fleet vehicles and VicRoads took a lead role in monitoring the level of compliance encourage staff to adopt safer driving practices. by the vehicle manufacturing industry with the new voluntary VicRoads continued to implement its own Safer Driving/Safer advertising code endorsed by the Australian Transport Council. Cars policy which includes an ongoing staff education campaign The code aims to ensure advertising for motor vehicles does not focussing on key road safety issues. portray unsafe or illegal driving practices, excessive speeding, driving under the influence of drugs, alcohol or while fatigued, ROADSAFE – COMMUNITY ROAD SAFETY COUNCILS and ensures motorcyclists wear an appropriate helmet. During 2002–03, Victoria’s network of 24 RoadSafe Community Discussions with other jurisdictions have identified the need for Road Safety Councils delivered around 190 road safety programs further improvements in this area. addressing local priorities as well as supporting statewide NEW TECHNOLOGY campaigns tackling speed and drink driving. VicRoads supported VicRoads commenced a trial of an intelligent speed adaptation this work by providing funding, information and professional system to enable a vehicle to detect which speed zone it is travelling development opportunities. in, through the use of satellite positioning technology. The system A partnership between RoadSafe, VicRoads and the Victorian applies a force against the accelerator pedal to discourage speeding, Country Football League was established to address drink driving whenever the driver exceeds the speed limit. In 2003–04, market in rural Victoria. The partnership aims to raise awareness of acceptance of the technology will be investigated. drink driving issues and promote responsible serving of alcohol. [32]

ROAD SAFETY PERFORMANCE INDICATORS

ROAD SAFETY STRATEGIES AND CO-ORDINATION 1998–99

Annual fatalities 402 Serious casualties 6,481 Casualties 24,689 Casualties per 100 million vehicle kilometres 51.3 Number of serious casualty crashes per 100,000 population 113.9 Number of serious casualty crashes per 100 million vehicle kilometres 11.0 Number of persons killed per 100,000 population 8.6 Number of persons killed per 100 million vehicle kilometres 0.8 Number of persons killed per 10,000 vehicles registered 1.25 Number of persons hospitalised per 100,000 population 130.4 Number of persons hospitalised per 100 million vehicle kilometres 12.6 Social cost of serious casualty crashes per 100,000 population $25.4m Social cost of serious casualty crashes per 100 million vehicle kilometres $2.6m

SAFER ROADS 1998–99 Estimated percentage reduction in crashes at treated blackspot/black length sites 26 Number of blackspots/black lengths treated 107 Number of crashes where fixed objects were hit 2,859 Number of crashes involving trains at level crossings (including pedestrians) 12 Average total estimated cost per project for Accident Blackspot program N/A Average actual total cost per project for Accident Blackspot program N/A

SAFER ROAD USERS 1998–99 Number of motorcycle fatalities per 10,000 motorcycles 6.1 Number of pedestrian fatalities per 100,000 population 1.7 Number of truck occupant fatalities per 100 million vehicle kilometres 2.7 Number of drivers (and riders) killed with a blood-alcohol concentration greater than .05 49 Number of pedestrians killed with a blood-alcohol concentration greater than .05 27 Percentage of drivers killed detected with an illegal blood-alcohol concentration 26 Young drivers (and riders) killed/seriously injured as a percentage of all drivers (18–25 yrs) 32.2 Older drivers (and riders) killed/seriously injured as a percentage of all drivers (60+ yrs) 12.2 [33] ROAD SAFETY

ESTIMATED, BASED ON 1999–2000 2000–01 2001–02 2002–03 LATEST AVAILABLE DATA BASED ON LATEST AVAILABLE AUSTROADS 400 409 451 368 CRASH COSTS 6,693 6,936 7,257 7,046 NEW PERFORMANCE 25,544 24,677 24,334 23,171 INDICATOR 51.2 48.4 47.9 45.0 115.4 116.9 123.7 120.6 10.9 10.9 11.8 11.4 8.5 8.6 9.3 7.6 0.8 0.8 0.9 0.7 1.22 1.24 1.34 1.08 133.5 136.7 140.7 137.0 13.2 12.8 13.4 13.0 $25.9.m $57.2m* $61.5m* $59.5m* $2.5m $5.4m $5.9m $5.6m

1999–2000 2000–01 2001–02 2002–03 26 26 26 20 174 251 482 555 THE FEDERAL BUREAU OF TRANSPORT ECONOMICS THE FEDERAL BUREAU OF TRANSPORT REVISED THE SOCIAL COST OF ROAD TRAUMA IN 2000.

3,015 3,089 3,156 2,952 * 12 17 8 5 N/A N/A $154,000 $194,000 N/AN/A $134,00 $192,000

1999–2000 2000–01 2001–02 2002–03 4.7 5.7 6.5 4.1 1.6 1.3 1.7 0.8 2.2 2.0 2.6 3.3 61 55 71 65 19 17 25 12 27 24 29 34 29.0 28.7 28.8 28.4 11.2 12.3 12.0 11.6 [34] [35] REGISTRATION AND LICENSING REGISTRATION REGISTRATION AND LICENSING SERVICES REGISTRATION DRIVER LICENSING AND VICROADS PROVIDES VEHICLE REGISTRATION, FOR THE PEOPLE OF VICTORIA. REVENUE COLLECTION SERVICES IT ALSO PROVIDES DRIVER LICENCE AND VEHICLE REGISTRATION ROAD USERS. TO VICTORIA’S INFORMATION

REGISTRATION AND LICENSING

ABOVE LEFT: A CUSTOMER AND HIS DAUGHTER AT THE NEW HOPPERS CROSSING OFFICE WHICH HAS THE FULL RANGE OF VICROADS VEHICLE REGISTRATION AND DRIVER LICENSING SERVICES. [36]

BELOW LEFT: VICROADS PROVIDES BOAT OPERATOR LICENSING AND REGISTRATION SERVICES ON BEHALF OF MARINE SAFETY VICTORIA. REGISTRATION BELOW RIGHT: A LICENCE TEST APPLICANT SITS VICROADS HAZARD PERCEPTION AND LICENSING TEST AT THE CARLTON REGISTRATION AND LICENSING OFFICE.

VicRoads aims to provide efficient and user-friendly registration and In October 2002, the Motorboat Registration System was licensing services for the Victorian community. The registration and successfully integrated into the VicRoads Vehicle Registration licensing data maintained by VicRoads is essential for effective road System so that the procedures for registering boats and motor law enforcement and for the development of road safety initiatives vehicles are now the same. Other benefits to boat owners include that benefit road users and the community. improved records of stolen boats and access to increased payment options and other services such as change of address via the internet. Registration and licensing services directly affect the majority of Victorians with 3.3m licensed drivers and 4.1m registered vehicles NEW CONTRACT FOR DRIVER LICENCE CARDS in Victoria. A total of 15.8m registration and licensing transactions During 2002–03 a $10.4m contract was awarded to Leigh Mardon were processed through a range of channels in 2002–03. to produce and issue driver licence cards for the next three years from November 2003. LEGISLATIVE CHANGES The introduction of this new performance based contract for the A crucial focus of this year’s activity was the implementation of production of licences will improve business processes through changes to the driver licensing computer system to support new improved funds transfer arrangements from VicRoads agencies, quicker update of databases and enhanced printing capabilities in legislation introduced as part of the Responsible Driving Package VicRoads offices. designed to improve road safety outcomes for Victorians. The changes related to the introduction of tougher drink driving PRACTICE TESTS ONLINE In April 2003, practice questions for licence knowledge tests and laws, increased demerit points for speeding, the addition of demerit the hazard perception test were published on the VicRoads website. points to the penalties for a range of other offences and the The practice questions use instructions identical to those contained introduction of alcohol interlock conditions for certain re-licensed in the actual tests and have the same look and feel. They enable drink driving offenders. More detail on the Responsible Driving applicants to become familiar with the test format before they sit Package can be found in the ‘Road Safety’ chapter of this report. the test at a VicRoads office, but more importantly encourage practice and learning in areas known to improve safe driving. NEW AND REVITALISED PRODUCTS SMART CARDS INTEGRATION OF MOTORBOATS INTO VICROADS SYSTEMS VicRoads continued to research the use of smart card technology VicRoads continued to provide boat operator licensing and for its driver licence card. Benefits of the smart card include registration services to the public on behalf of Marine Safety reduced licence fraud because of the security features of the chip, Victoria. Currently 146,945 recreational motorboats are and improved convenience, efficiency and security of registration registered to operate in Victoria with 104,651 licensed operators. and licensing transactions. [37] REGISTRATION AND LICENSING REGISTRATION

BELOW : CUSTOMERS BEING SERVED AT A VICROADS REGISTRATION AND LICENSING OFFICE.

VICRIDER REDEVELOPMENT The 12 per cent decrease in motor vehicle thefts in Victoria During 2002–03, VicRoads researched the redevelopment of during 2002–03 indicates that the introduction of the register and the Victorian Rider handbook for motorcyclists, in consultation associated reforms being pursued by VicRoads, Victoria Police, with key stakeholders. On the basis of this research VicRoads, insurance companies and other stakeholders are taking effect. supported by the Transport Accident Commission, will develop a new handbook for release in 2003–04 that incorporates the latest WORKING WITH THE COMMUNITY road safety knowledge. ELECTRONIC SERVICES REVIEW OF REGISTRATION PROCEDURES Increased online transactions In October 2002, Victorian Police commenced a major During 2002–03, business statistics identified an eight per cent investigation into stolen vehicles that had been given new shift by customers to use the internet rather than over-the-counter identities and allowed to be re-registered through VicRoads transactions to renew their registration. This trend is expected to offices. A number of VicRoads staff, who have subsequently left increase with the convenience of 24-hour access to services online. the organisation, were implicated in this process. VICROADS VEHICLE SECURITIES REGISTER ONLINE As a result of this investigation, VicRoads initiated a major review VicRoads online vehicle securities register enables of its vehicle registration processes aimed at reinforcing its financiers, motor vehicle traders, insurance companies and compliance systems and minimising the opportunity for the public to check the registration and financial encumbrance fraud and corruption. Experts from Victoria Police, Queensland status of vehicles. Transport and the New South Wales Roads and Traffic Authority are assisting with the review. Significant benefits are expected During 2002–03 the volume of online transactions increased by in the areas of community confidence and business efficiency 20 per cent. The service can also be accessed by telephone and at through improved integrity of data and more stringent VicRoads head office in Kew. validation processes. FEE EXEMPTIONS FOR INCAPACITATED PERSONS WRITTEN-OFF VEHICLES REGISTER (WOVR) Incapacitated persons were granted registration fee exemptions In May 2002, Victoria was the first state to introduce the for any vehicle that is specially constructed or modified to Written-off Vehicles Register to reduce opportunities for thieves allow transportation of at least one occupied wheelchair. to steal vehicles and re-register them using the identities of The exemptions will apply from 1 July 2003 and extend the written-off vehicles. The legislation requires insurers, self- previous provisions, where exemptions applied only if a vehicle insurers, motor car traders and auto parts recyclers to report was designed solely for the transport of one incapacitated person details of all written-off vehicles to VicRoads. and not used to convey other people. [38]

LEFT: INTERPRETER SERVICES ARE PROVIDED BY VICROADS AT NO CHARGE TO CUSTOMERS WHO NEED TO SIT THEIR LEARNER PERMIT TEST IN A LANGUAGE OTHER THAN ENGLISH. RIGHT: A HIGH SCHOOL STUDENT APPLIES FOR HIS LEARNER PERMIT.

ASSESSING FITNESS TO DRIVE >> Eighty-seven per cent of customers were satisfied with all As noted in the Road Safety chapter of this report, VicRoads services provided assisted in redeveloping the national publication Assessing Fitness >> Twelve per cent of customers indicated that VicRoads had to Drive: Medical Standards for Licensing and Clinical Management exceeded their service delivery expectations. Guidelines. The Guidelines cover both private and commercial vehicle drivers and provide the medical profession with national EFFICIENT CUSTOMER SERVICE standards to determine if a person is medically fit to drive. During 2002–03, performance against key customer service The Guidelines are scheduled for release in August 2003, indicators for registration and licensing was as follows: pending endorsement by the Australian Transport Council. >> Registration and licensing offices served 82 per cent of IMPROVING SAFETY FOR IMPAIRED DRIVERS customers within 10 minutes. The target is to serve 80 per cent VicRoads continued to sponsor research and development of a of customers within 10 minutes reliable test for general practitioners to evaluate patients’ fitness to drive. The aim of the test is to assist doctors in the assessment >> VicRoads call centres handled more than three million of patients for disorientation, forgetfulness, confusion and telephone calls slowness, all of which are critical factors affecting safe driving. >> The service target for answering calls is within 30 seconds. Refinement and validation of the test was completed in 2002–03. This year the metropolitan call centre answered calls within an It was trialled in Victoria to determine its acceptability by doctors average of 41 seconds and the rural call centre within an and patients. VicRoads has commenced an examination of the average of 40 seconds. recommendations in order to determine whether further research Results of performance based contracts managed by VicRoads and development is required. included: MULTICULTURAL COMMUNICATIONS >> An accuracy rate of more than 97 per cent for all registration Licence testing and licensing transactions processed through the mail Learner permit and probationary licence tests continue to be An accuracy rate of more than 99.5 per cent for vehicle available in 20 languages. Boat operator licence tests were >> registration renewals processed through VicRoads agents, available in four languages other than English. including internet and telephone services Interpretation and translation services >> An overall accuracy rate of 99.9 per cent for the delivery of VicRoads provides translator services through the Victorian registration plates to customers Interpreting and Translation Service in 102 languages. This ensures people of Non-English speaking backgrounds have >> The mailing of 98 per cent of vehicle registration renewals equal access to registration and licensing information and within the target despatch times. services. In 2002–03, 3530 interpreter-assisted practical driving LOWEST ANNUAL COST FOR REGISTRATION tests were undertaken. AND LICENSING SERVICES CUSTOMER SATISFACTION SURVEY VicRoads achieved the lowest annual cost of servicing vehicle In April 2003, a survey was conducted to measure customer registration and driver licences in Australia for the sixth year in satisfaction when undertaking registration and licensing succession as measured by the National Performance Indicators transactions with VicRoads or its agencies. The survey focussed published annually by Austroads. The indicators for 2001–02 (the on service delivery channels, with the following results: latest figures available) are opposite. [39] REGISTRATION AND LICENSING REGISTRATION

FIVE YEAR STATISTICAL SUMMARY

REGISTRATION AND LICENSING UNIT 1998–99 1999–2000 2000–01 2001–02 2002–03

User transaction efficiency $ per record 7.75 7.51 7.63 8.13 N/A1 Vehicle registrations per Number 4532 5251 5674 5854 6660 registration and licensing staff member Licensed drivers per Number 5099 5714 6158 6260 53322 registration and licensing staff member Telephone calls answered: Number (000) 2387 2747 2736 2936 3093 driver and vehicle

*NOTES: 1. AUSTROADS INDICATORS ARE CALCULATED IN THE FOLLOWING FINANCIAL YEAR. 2. THE DECREASE IN 2002–03 IS ATTRIBUTED TO A CHANGE IN DATA COLLECTION METHODS, WITH PRECISE DATA NOW PROVIDED BY THE NEW DRIVER LICENSING SYSTEM. IN THE PREVIOUS THREE YEARS THESE FIGURES WERE ESTIMATES.

USER-TRANSACTION EFFICIENCY FOR DRIVER LICENCES AND VEHICLE REGISTRATION ($ PER RECORD)

20

15

10

5

0

2000 [40] [41] IMPROVING OUR EFFECTIVENESS

IMPROVING OUR EFFECTIVENESS

LEFT: COLIN WALKER, AN ELDER FROM THE YORTA YORTA, AND VICROADS MICHAEL MCCARTHY, AT PRANJIP CREEK ON THE MURCHISON EAST DEVIATION ON THE GOULBURN VALLEY HIGHWAY. THE ROAD PROJECT WAS THE FIRST IN VICTORIA TO ESTABLISH A CULTURAL HERITAGE AND ENVIRONMENTAL PROTECTION AGREEMENT WITH THE TRADITIONAL OWNERS OF THE LAND – THE YORTA YORTA PEOPLE. [42]

IMPROVING OUR EFFECTIVENESS

VicRoads Corporate Plan 2002–04 identifies actions in four key travel delays along the route and develop new tram stops areas to improve our effectiveness. These are: to make Route 109 easy to use for Melbourne commuters. >> Listening to the community – to develop a better INDIGENOUS COMMUNITIES understanding of community issues A number of recent projects have required close consultation >> Working with others – the Department of Infrastructure, other with indigenous communities to ensure that VicRoads Government departments and agencies, stakeholders and the understood the significance of cultural heritage sites and that community to improve outcomes for Victoria these were properly protected. >> Getting things done – to achieve a broader commitment to The Murchison East Deviation Project on the Goulburn Valley strategies that deliver the Government’s transport agenda and Highway was the first major road project in Victoria to establish strengthen forward planning to reduce project lead times a cultural heritage and environmental protection agreement with >> Improving our capabilities – to develop our knowledge, skills traditional owners of the land – in this case the Yorta Yorta and systems. people. The agreement included reserving approximately 13 hectares of culturally significant land as a cultural heritage zone. LISTENING TO THE COMMUNITY Special access rights to this area have been granted to the Yorta REGIONAL CONSULTATION Yorta people. This is the first time in Victoria that remnant land During 2002–03, VicRoads regions began work to develop a from a road project has been reserved in this way. community relationship plan to further enhance relationships VicRoads also worked with the Gippsland and East Gippsland with municipalities and special interest groups such as Aboriginal Co-operative to collect more than 44,000 aboriginal multicultural groups, youth, the elderly, disabled and industry artefacts before works commenced to upgrade the Princes groups. These relationships assist VicRoads to stay in touch with Highway between Stratford and Bairnsdale. This has made the community issues and concerns. site one of Victoria’s largest cultural heritage archaeological dig Regional managers meet regularly with councillors and council sites. Archaeologists employed by VicRoads supervised the officers to identify issues of common strategic interest. Meetings recovery process using a motorised sieve, the first time this are also held with representatives from other government technique has been used in Victoria. departments and agencies on strategic issues that will be used in the development of the regions’ program. WORKING WITH OTHERS WORKING WITH OTHER STATE GOVERNMENT DEPARTMENTS PROJECT CONSULTATION VicRoads co-operates with other government agencies to achieve Community Advisory Groups are established for each major project managed by VicRoads to ensure that community issues integrated transport planning and project delivery. and concerns are addressed in planning, design and construction. VicRoads has worked with the Department of Infrastructure During construction of the Craigieburn Bypass, the community (DoI) to clarify responsibilities for public transport infrastructure, has been involved in the design of noise walls, landscaping and policies and standards. Performance objectives have been agreed the development of a shared path for pedestrians and cyclists and programs will be developed by VicRoads that will improve along the length of the bypass. VicRoads is working with the travel times and reliability for buses and trams. Wurundjeri Aboriginal community to preserve areas of cultural The Government’s metropolitan strategy – Melbourne 2030 – Planning significance and conduct archaeological surveys along the Merri for Sustainable Growth – was released this year. VicRoads has worked Creek corridor. with the DoI and Department of Sustainability and Environment in An extensive community consultation program was undertaken developing initiatives to support the strategy and has commenced to involve the community in the planning and construction of the developing a new Metropolitan Road and Traffic Management Hallam Bypass. A Community Liaison Group was formed, which Strategy in consultation with all key stakeholders. The strategy will included representatives from the local community, the City of provide directions for managing the arterial road system in response Casey, local business and industry, Melbourne Water, the to the key objectives contained in Melbourne 2030. Environment Protection Authority and VicRoads. The Liaison VicRoads continued to participate in a number of strategic Group provided input into the development and implementation transport studies being developed by the DoI and local of an environmental strategy and design, construction, government. These studies involved the outer east, north central, landscaping and noise issues. north east and inner west suburbs. A further important study VicRoads Tram 109 Project team has been working with related to freight movement involved the Melbourne Ports area. the Department of Infrastructure, Yarra Trams, councils, the local community and other organisations to reduce [43] IMPROVING OUR EFFECTIVENESS

BELOW: VICROADS WORKED WITH THE GIPPSLAND AND EAST GIPPSLAND ABORIGINAL CO-OPERATIVE TO COLLECT MORE THAN 44,000 ABORIGINAL ARTEFACTS ON THE PRINCES HIGHWAY NEAR BAIRNSDALE.

In conjunction with DoI, the Municipal Association of Victoria and including the development of new Austroads guidelines for the Victorian Local Governance Association, VicRoads managed a evaluating transport project proposals, guidelines to assist review of arrangements for regional strategic transport planning. planners and traffic engineers in dealing with freight issues and a The study has led to development of a framework to enhance and review of methods and practices for forecasting and analysing develop strategic planning skills in local government. urban freight movements. During 2002–03 VicRoads continued to consult with The Intelligent Transport Systems (ITS) program concluded its Heritage Victoria and the National Trust to maintain and task to implement the actions from e-transport, the national ITS preserve heritage bridges. An overview of the history of metal strategy, over a three year period ending June 2003. A national road bridges was completed and work on a history of these working group has been established to oversee the development structures in Victoria progressed. of a new national ITS strategy. VICTORIA’S ROAD SAFETY PARTNERSHIP VicRoads continued to take a lead role in the Road Safety VicRoads is working closely with its road safety partners Victoria program, which conducts research to assist in reducing the Police, Transport Accident Commission (TAC), Department of Justice frequency and severity of road crashes. Issues considered and members of the wider community to deliver the road safety included: bus, cyclist, motorcyclist and pedestrian safety issues; outcomes in arrive alive!, Victoria’s Road Safety Strategy 2002–07. road safety treatments for railway level crossings and high risk The resources and expertise of VicRoads and its road safety crash locations; driver regulation and education; intelligent partners has seen many of the initiatives identified in the strategy transport systems for road safety; and evaluation and being implemented, particularly those addressing speed, drink prioritisation of road safety treatments. driving, fatigue and road and roadside design. These other The Business Systems program encourages best practice in initiatives have contributed to an 18 per cent reduction in fatalities, business systems, including asset management, assessment of or 83 lives saved, compared to the 2001–02 financial year. the performance of the road system and road authorities, and NATIONAL AND INTERNATIONAL PARTNERSHIPS appraising the costs and benefits of road transport investment Austroads proposals. VicRoads is managing a project to facilitate the uptake VicRoads continued to play a leading role in projects of road asset management processes and procedures by undertaken by Austroads, the association of Australian and New Australian road authorities. Zealand road and traffic authorities. VicRoads staff made major The Technology and Environment program develops and contributions to advisory or reference groups that provide promotes technology for road and bridge design and direction for the six Austroads programs and to the Intelligent construction and maintenance. In 2002–03, the program Access Program (IAP) Feasibility Project and National Exchange undertook projects, workshops and seminars associated with of Vehicle and Driver Information System (NEVDIS) project. issues such as traffic noise; environmental considerations for The Road System Management Program promotes the effective road planning and design; road design for trucks; rural and efficient management of the road system in order to road design; fauna sensitive road design and management; optimise its contribution to economic, social and environmental design of roadway lighting; road pavement technology; goals. VicRoads provided significant contributions to projects and bridge design. [44]

The Road Use Management Program contributes to the safe The Council also held five Road Freight Forums in 2002–03. The and efficient use of the road system. In 2002–03 the program forums provide a unique opportunity for sharing information and concentrated on four areas of activity: development of best gathering feedback from stakeholders. practice guidelines for heavy vehicle compliance and enforcement; revision of traffic engineering guidelines; the Victorian Bicycle Advisory Council start-up of the NEVDIS system to link vehicle registration During 2002–03, the Council’s activities included: systems around Australia; and the development of performance >> Conducting a stakeholders’ workshop to provide input in to based standards for heavy vehicles. the Metropolitan Road and Traffic Management Strategy REAAA being developed by VicRoads The Road Engineering Association of Asia and Australasia >> Advising on the Government’s proposal to amend planning (REAAA) serves to develop professional and commercial links provisions to require facilities such as bicycle storage, lockers within and between countries in the Pacific region. The and showers in new public buildings. Association has approximately 1000 members in 26 countries and disseminates information by holding regular events including Victorian Motorcycle Advisory Council international conferences, technical visits, study tours, trade During 2002–03, highlights of the Council’s activities included: displays, seminars and workshops. >> Reviewing and recommending projects to be funded from the The Australian Chapter is one of several national chapters formed TAC motorcycle levy to the Minister for Transport within the REAAA. As Chairman of the Australian Chapter, >> Provision of advice on the future role of the motorcycle as a VicRoads Chief Executive David Anderson aims to provide links transport mode for the Metropolitan Road and Traffic for Australians to professional and commercial colleagues in the REAAA through forums, technical visits, seminars and Management Strategy. information exchanges. Victorian Road Based Public Transport Advisory Council PIARC The Road Based Public Transport Advisory Council was During 2002–03 VicRoads remained an important contributor established this year to provide strategic advice on bus, tram and to PIARC, the Permanent International Association of Roads taxi matters and to enhance co-operation and co-ordination Congresses, also known as the World Road Association. Its between road based public transport users. The Council mission is to exchange knowledge about, and techniques for, developed approaches to the following key issues during 2002–03: roads and transportation. Victoria hosted PIARC’s Council >> Improvements to bus and tram stop standards and Executive meetings in October 2002. This facilitated Public transport priority at intersections contact with 120 of the world’s leading road management >> organisations. Permission was obtained to conduct the Council >> Bus lanes and tram fairways meeting in the Legislative Assembly of Parliament House. >> Managing competing demands on the road network. WORKING WITH STAKEHOLDERS VicRoads convenes four broad based advisory councils that GETTING THINGS DONE provide it and the Minister for Transport with strategic advice in IMPROVED PLANNING AND PROGRAM DELIVERY specialised areas. VicRoads Regional Services Division has undertaken reviews of Victorian Road Freight Advisory Council project management guidelines and contract specifications to The Council is a key consultation and advisory forum for the improve project delivery. The reviews include VicRoads Worksite road freight industry. During 2002–03 it addressed a range of Safety and Traffic Management Code of Practice, Routine issues, including: Pavement Maintenance and Linemarking. The reviews ensure >> Responsibilities of truck operators, road authorities and these specifications reflect current Australian Standards. High service authorities for maintaining appropriate height priority has been given to requirements for compliance with clearance to cables and wires across roads occupational health and safety standards. >> A proposal to allow left-hand steer only side-loader waste Better processes have also been established to monitor vehicles and street sweepers to operate in Victoria advertising and award of contracts. These will enable regions to >> A proposal to increase the mass limits for truck/trailer manage program delivery more effectively. combinations An electronic project management system has been developed by >> An investigation of the rest area needs of truck drivers in the VicRoads Major Projects Division to ensure that all staff have Melbourne and Geelong area. This resulted in the immediate access to the tools, systems and procedures that are development of an information bulletin detailing rest area necessary for them to deliver projects. The new system provides a locations in Melbourne and Geelong. single point of access to the information required to manage projects. [45] IMPROVING OUR EFFECTIVENESS

An agreement was developed with the Yorta Yorta nation for the consultancy firms to submit expressions of interest or tenders for implementation of the Murchison East section of the Goulburn overseas projects. VicRoads International has also worked in Valley Highway, to ensure the project was constructed with the partnership with five overseas firms in undertaking or bidding for local indigenous community’s support. When a burial site was projects in India, New Zealand and the Philippines in 2002–03. discovered during construction of the new road, the agreement facilitated a speedy resolution that was acceptable to all parties, INTERNATIONAL PROJECTS ensuring that the project was not delayed. The new road was The major projects undertaken during the year included the opened nearly 11 months ahead of schedule. following: The improvements to Geelong Road were opened a little less than >> In partnership with the SMEC Group (a development three years after the first contract was awarded. The project was consultancy), VicRoads completed a project to implement completed in a relatively short period while still allowing up to improved road traffic safety practices aimed at a continuous 100,000 motorists to use the road every day. This required many reduction in the level of road accidents in Eritrea. changes to traffic management arrangements as work progressed. These were developed by contractors and endorsed by VicRoads >> Work was completed with the Government of Andhra Pradesh, for the numerous stages of work to ensure that the needs of both India, on phase two of an AusAid-funded project to establish a motorists and workers were considered. new Roads Development Corporation and identify priority reforms to assist the existing Roads and Buildings Department. COMMERCIAL SERVICES Businesses in the Commercial Services Division provide technical >> Work on the two-year Mizoram State Road Project in India and engineering expertise to VicRoads and other clients on a commenced in February. The project aims to develop commercial basis. These services include geotechnical and institutional measures to improve the efficiency and pavement consultancy, road, bridge and landscape design, land effectiveness of road sector management in Mizoram. information and survey, property management, information services, bituminous surfacing and line marking, international >> In conjunction with the Overseas Projects Corporation of Victoria, project management, in-house computer desktop services, a communications strategy was implemented that supports the building and facilities management, graphics and publishing and introduction of new road traffic and vehicle weight regulations business information. across four provinces in northern Sumatra, Indonesia. During 2002–03, these off-budget businesses returned a total >> In January, a two-year project for the Department of Public profit of $3.7m, representing a 5.5 per cent return on expenditure. Works and Highways in the Philippines was commenced to The major Commercial Services businesses must comply with the improve its traffic accident prevention program. Victorian Government’s Competitive Neutrality Policy. They have three-year strategic plans and operate to an approved 12-month IMPROVING OUR CAPABILITIES business plan which includes targets for revenue and profit. Highlights of these operations were as follows: VicRoads people play an important role in creating an organisation that is responsive to community needs and >> The design prepared by the Landscape and Environment continuously improves service delivery. team in VicRoads Design for the Black Forest section of the Calder Freeway won the prestigious ‘Transport and Infrastructure’ HUMAN RESOURCES STRATEGY category in the Australian Institute of Landscape Architects 2002 In 2002–03 the VicRoads human resources strategy Landscape Architecture Awards for Victoria and Tasmania. Great People—Smart Services completed the first year of a three year program. The strategy’s six elements focus on key >> GeoPave is VicRoads pavement and geotechnical consultancy aspects of human resources management that enable the business. This year GeoPave managed the geotechnical organisation to meet its business commitments. They are: investigation for the Mitcham-Frankston Freeway project on behalf of the Department of Infrastructure. >> Individual development >> The Department of Infrastructure also engaged Land >> Developing leaders Information and Survey to provide advice and services for the >> Workforce planning 42 km Mitcham-Frankston Freeway Project. >> Providing a safe and healthy workplace EXPORTING OUR EXPERTISE >> Building relationships VicRoads International continued to work in partnership with >> Management responsibilities. other Victorian and Australian companies to assist them in exporting their services to the world. As a lead bidder or as an Staff have received the strategy enthusiastically and significant associate, VicRoads International joined with nine other Australian progress has been made in each area. [46]

INDIVIDUAL DEVELOPMENT DEVELOPING LEADERS My Career, My Life VicRoads Leadership Program The My Career, My Life program is a key VicRoads initiative that The VicRoads Leadership Program was launched in early 2003. represents a fundamental change in the organisation’s approach The program accelerates the development of participants and to staff development and career planning. The program was ensures that VicRoads has a pool of individuals who can help the launched in July 2002 and aims to: organisation achieve its business aims. Seventy-six staff are currently involved in the 18-month program. >> Assist staff to take primary responsibility for their personal and professional development by introducing a more External management development programs integrated approach to staff development and providing During 2002–03, 20 current and potential managers attended a information and support around career enhancement and variety of programs including: Foundations of Leadership, New life events/issues Managers’ Program, Accelerated Development Program and >> Improve the match between individuals’ career and life needs Advanced Negotiation and Influence Strategies. and VicRoads business needs WORKFORCE PLANNING >> Sixty-five per cent of staff have attended an introductory VicRoads combines the development of existing staff members program for My Career, My Life. with a strategic recruitment policy to ensure it can meet its present and future workforce needs. DIPLOMA OF BUSINESS (FRONTLINE MANAGEMENT) VicRoads has formed a partnership with APESMA Management Graduate recruitment and development Education, one of Australia’s leading private education providers, The graduate recruitment process has been redeveloped and to deliver a Diploma of Business (Frontline Management) tailored re-branded under the tagline ‘You’ll be surprised where it can take to VicRoads needs. Participants in the program can select from you’, emphasising the diversity of experience available at VicRoads. a combination of workshops, self-paced learning, internal VicRoads recruited 53 new graduates in 2002–03, composed of 44 coaching and external tutoring. Eighty-one staff enrolled engineering and nine business/commerce graduates. A rigorous in the first intake. selection process ensured they were the best available graduates TERTIARY EDUCATION from more than 1200 applicants. Under its education policy, VicRoads supported 62 staff PROVIDING A SAFE AND HEALTHY WORKPLACE participating in tertiary education programs during 2002–03. Courses undertaken were at the advanced certificate, Safety Management System advanced diploma, bachelor degree, graduate diploma and The Safety Management System was introduced in July 2002 as a master degree levels. management tool for improving performance in occupational health and safety. The system requires a worksite safety plan in each REWARDING ACHIEVEMENT work area which managers and staff monitor regularly to minimise VicRoads has two formal programs for encouraging risk and increase safety awareness. It also supports injury and acknowledging outstanding staff performance, the management, education of staff in health and wellbeing and Staff Achievement program and the Performance development of an overall safety culture in VicRoads. Management Scheme. The Safety Management System forms the cornerstone of VicRoads During 2002–03, staff achievement awards were presented to approach to the Government’s WorkCover and Occupational Health nine teams and 84 individuals. and Safety (OH&S) Improvement Strategy for the public sector. The Performance Management Scheme is designed to improve Under the strategy, the State Government has set targets to achieve performance by rewarding staff whose performance exceeds their a 20 per cent improvement over three years. The following table agreed performance targets. illustrates VicRoads progress towards achieving these targets.

STAFF ACHIEVEMENT AWARDS VICROADS WORKCOVER PERFORMANCE AGAINST LEVEL OF AWARD NUMBER OF AWARDS THE GOVERNMENT’S WORKCOVER AND OH&S Outstanding Service – individual award 1 IMPROVEMENT STRATEGY WORKCOVER BASELINE 2001–02 PERCENTAGE 2002–03 PERCENTAGE Excellent Service – individual award 6 PERFORMANCE PERFORMANCE IMPROVEMENT IMPROVEMENT Meritorious Service – individual award 16 INDICATOR 2000–01 Meritorious Service – team award 1 Target 73 6.7 67 6.7 Commendation – individual award 61 Number of 78 60 23 43 28.3 reported claims Commendation – team award 8

REPORTED CLAIMS = STANDARD WORKCOVER CLAIMS REPORTED IN THE PERIOD 1.7.02 TO 30.6.03 [47] IMPROVING OUR EFFECTIVENESS

BELOW RIGHT: TRAVIS MINNS FROM MJ BETTER HEALTH AND VICROADS RAYONI HEAD CONDUCT CARDIAC RISK ASSESSMENT FOR STAFF AT VICROADS HEAD OFFICE IN KEW. BELOW: ALLISON VENN (FOREGROUND) AND STEFAN KAZAKIS (BACK LEFT) ARE TWO OF THE 81 PARTICIPANTS ENROLLED IN THE DIPLOMA OF BUSINESS (FRONTLINE MANAGEMENT). MARIO URBAN (BACK RIGHT) MANAGES THE PROGRAM THAT IS A PARTNERSHIP WITH APESMA MANAGEMENT EDUCATION. [48]

Safety awareness training RESEARCH AND DEVELOPMENT More than 800 staff attended safety awareness training in the first The 2002–03 research and development (R&D) program involved half of 2003. VicRoads policy is for all staff to attend this training 43 new and eight continuing projects with expenditure of $2.4m. every two years. This included a contribution of $175,000 to the Monash BUILDING RELATIONSHIPS University Accident Research Centre for collaborative research to Employee relations provide strategic support for the development and evaluation of In December 2002, 88 per cent of VicRoads staff voted in favour of road safety countermeasures. an enterprise bargaining agreement that included a range of VicRoads also contributed $580,000 to national strategic research innovative family-friendly provisions. These focussed on increased managed by Austroads (the organisation of road agencies from all flexibility in taking pre-natal leave, family care leave, elder care states and territories). leave and participating in home-based work arrangements. VicRoads investment in R&D focuses on projects that investigate Supporting government initiatives ways of providing better products and services to the community Twenty-eight young people worked in a range of administration and and improve business efficiencies for the organisation. customer service positions in VicRoads as part of the Victorian Highlights of this year’s program include the following: Government’s Youth Employment Scheme. The scheme combines Researchers investigated what parents and home-based carers 12 months on-the-job experience with structured classroom learning. >> believe about teaching good road safety habits to very young Scholarship support children. The information gathered was used to implement an Two additional university places were sponsored under the education program called Starting Out Safely. Hollingworth Cadetship Scheme conducted by DOXA Youth A first stage evaluation of the Statewide Blackspot Program Foundation, bringing the current number sponsored by VicRoads >> to four. DOXA is a voluntary non-denominational organisation examined the effects of treatments completed under the which does not receive government funding. The scheme program to the end of December 2001. The findings revealed a provides financial support and paid long vacation employment significant reduction in casualty crashes at the treated sites. during their university education for talented young people from >> An investigation into the method used for predicting when road disadvantaged backgrounds. Two former DOXA students have surfaces should be resealed was completed. This project has the been taken into VicRoads graduate development program. potential to produce significant cost savings in the future. >> Costs in bridge maintenance could be reduced considerably STAFFING TRENDS following a trial involving the use of zinc-rich paints to re-coat YEAR STAFF steel bridges previously treated with zinc silicate. 1998–99 2296 >> The performance of internally illuminated pavement markers 1999–2000 2245 to improve road and lane delineation in the event of bad 2000–01 2246 weather conditions was tested. The results will be used to 2001–02 2284 determine appropriate use of these markers. 2002–03 2311 INFORMATION TECHNOLOGY A three-year strategic plan IT@VicRoads for continuous development of VicRoads information technology (IT) WORKFORCE DATA capabilities was completed in 2002–03. STAFF 1998–99 1999–2000 2000–01 2001–02 2002–03 CLASSIFICATIONS To support the implementation of IT@VicRoads the role of Chief Information Officer was created with a new Executive officers 65 65 62 62 63 department to focus on priorities such as information Engineers/ 666 712 796 862 904 management, information technology strategy and Professional planning, the appropriate sourcing of IT services and the Administrative 950 909 856 850 856 design and implementation of cost-effective information Technical 250 220 211 185 171 technology systems. Field 365 339 321 325 317 Total 2296 2245 2246 2284 2311 [49] IMPROVING OUR EFFECTIVENESS

BELOW: THE GRADUATE PROGRAM WAS RE-BRANDED THIS YEAR UNDER THE TAGLINE ‘YOU’LL BE SURPRISED WHERE IT CAN TAKE YOU’. GRADUATES PICTURED FROM LEFT TO RIGHT: LIDA VAY (FRONT), PAULA JACOBS (BACK), JACQUI CONVERY (MIDDLE), DALE COFIELD (BACK), JESSICA FRANKLIN (FRONT), ANTHONY FRODSHAM (BACK), JOANNA BLOODWORTH (FRONT) AND THOMAS LUN (BACK). [50] [51] CORPORATE PERFORMANCE CORPORATE PHOTOS COURTESY OF ABIGROUP PHOTOS COURTESY

CORPORATE PERFORMANCE

LEFT: CONTACTORS ON THE CRAIGIEBURN BYPASS. [52]

CORPORATE PERFORMANCE

PERFORMANCE MEASURES VICROADS CONTRACT PERFORMANCE Each year, Austroads collects and collates performance data on the Australian and New Zealand road systems and the road authorities. The result is a set of 36 National Performance CONTRACT DESCRIPTION NUMBER Indicators (NPIs) that provides for comparisons of road authority jurisdictions for any one year and over previous years. 4847 Princes Freeway West—Corio Section The indicators are grouped under 11 sections including road 4879 Princes Freeway West—Laverton Section safety, environment, construction and maintenance, travel 4905 Princes Freeway West—Little River Section time, fuel consumption and user satisfaction. Further details on 4957 Melton Highway, duplication—McCubbin Drive to the NPIs are available on Austroads website at The Regency www.austroads.com.au 5059 Goulburn Valley Highway—Murchison East Deviation CONTRACTING OF WORK 5132 Reynolds Road, duplication—Andersons Creek Road and Mullum Mullum Creek During 2002–03, VicRoads awarded 161 contracts valued at 5161 —improvements at Williamstown Road on ramp approximately $318 million. By total value, the largest contract 5174 Monash Freeway— to areas were: Belgrave Hallam Road >> New roadworks $194 million 5246 Monash Freeway—Hallam Bypass, west of Troups Creek >> Road sealing $24 million West and east of Narre Warren main drain >> Road asphalt supply and placement $23 million 5251 Hutton Road, duplication—works between Springvale Road and east of Perry Road >> Road maintenance $19 million 5253 Pascoe Vale Road, duplication—Coleraine Street to Legal services $11 million >> Shankland Boulevard >> Registration and licensing services $10 million 5254 Swansea Road Lilydale, duplication—York Road to >> Roadside amenities $8 million. Birmingham Road and Hull Road to Anderson Street A number of significant contracts awarded in previous 5257 South Gippsland Highway—shoulder construction, years continued throughout this year. These included major sealing, drainage works and guard fence between capital works, projects such as the Calder Highway, Hallam Woodside and Longford Bypass and Geelong Road and provision of computer, 5275 Monash Freeway—Hallam Bypass, east of Narre Warren telecommunications, and database management services. main drain to north of Gippsland railway line Details of all VicRoads contracts are provided at 5305 —single highway carriageway and www.vicroads.vic.gov.au. These details include full disclosure reconstruction of highway between Bay Road and The Gurdies of contracts valued at more than $10m. 5327 Tottenham—lowering of Ashley Street below rail overpass Guidelines published by the Department of Premier and 5362 Eastern Freeway Park and Ride Cabinet (1995), require reporting of consultancies that provide 5378 Craigieburn Bypass—bridge works and associated roadworks expert analysis and advice that facilitates decision making, to adjacent to Hume Highway perform a specific one-off task or set of tasks, or to perform a 5397 Belgrave-Hallam Road, duplication—north of Frawley Road task for which the required skills or perspectives are not to Melverton Drive present within VicRoads. 5423 Princes Highway West—shoulder stabilisation and sealing During the year, there were no consultancy arrangements between Port Fairy and Portland where the cost of engagement exceeded $100,000. 5436 Heatherton Road and Belgrave-Hallam Road, intersection upgrade Consultancies under $100,000 totalled 13 at a total cost 5452 Princes Highway—shoulder sealing, intersection and drainage of $219,318. between Stratford and Bairnsdale 5456 Eastern Freeway, Hoddle Street—noise fences and Frankston Freeway, Beach Street—noise fence 5549 Roundabout at the intersection of and Frankston-Flinders Road, Tyabb 5565 Monash Freeway wire rope safety barrier 5580 West Gate Bridge—replacement of asphalt surfacing 5612 Pavement rehabilitation and shoulder sealing in Eastern Victoria [53] CORPORATE PERFORMANCE CORPORATE

ROAD/BRIDGE IMPROVEMENT CONTRACTS COSTING IN EXCESS OF $1M COMPLETED IN 2002–03

ORIGINAL CONTRACT AMOUNT CONTRACT PRICE AT PRACTICAL COMPLETION VARIANCE $M $M % 41.20 43.16 5 66.64 70.02 5 74.67 80.36 8

12.99 14.52 121 60.16 66.73 112 E.

3.49 3.52 1 8.43 8.35 -1

41.81 47.74 141

34.38 36.73 7

7.37 7.49 2

15.32 15.48 1

10.78 11.52 7

1.10 1.19 8

21.91 21.60 -1

9.95 9.99 0 2.89 2.98 3 2.40 2.60 8

4.11 4.04 -2

2.32 2.56 101

1.90 2.00 5 1.33 1.40 5

2.11 2.15 2

1.44 1.42 -1

2.43 2.48 2 4.86 4.66 -4 1.30 1.21 -7 1

1.66 1.82 10 NOTES 1 THESE CONTRACTS WERE EXTENDED TO INCLUDE ADDITIONAL WORKS. 2 HERITAGE. OF CULTURAL ADDITIONAL WORKS DUE TO PRESERVATION * PRACTIC IN-LINE WITH INDUSTRY PROCEDURES INCLUDE A PROVISION OF 5% TO 7% FOR CONTRACT VARIATIONS, VICROADS PROJECT ESTIMATING 438.95 467.72 4* [54] [55] CORPORATE GOVERNANCE CORPORATE

CORPORATE GOVERNANCE

LEFT: VICROADS ADVISORY BOARD MEMBERS. FROM LEFT TO RIGHT AROUND THE TABLE: BRIAN BAQUIE, JENNY DALE, RAY SHUEY, PHIL LOVEL, ALAN COLLINS (STANDING), JOHN LIDDELL (STANDING), DAVID ANDERSON (STANDING), ROBERT KRIEK, JIM HINTON, BILL NOONAN (STANDING), TERRY LAIDLER (STANDING), CHRISTINE GIBBS, SUE CHRISTOU. [56]

CORPORATE GOVERNANCE

The corporate governance practices of VicRoads are designed to ADVISORY BOARD MEMBERS AT 30 JUNE 2003 ensure a high standard of accountability and to achieve the DAVID ANDERSON (CHAIRMAN) delivery of cost effective programs and services to the community. CHIEF EXECUTIVE, VICROADS

CHRISTINE GIBBS STATUTORY FRAMEWORK COMMUNICATIONS GROUP MANAGER, MELBOURNE WATER

The Roads Corporation is a Victorian statutory authority TERRY LAIDLER established under the Transport Act 1983 and operating under the COMMUNICATIONS CONSULTANT registered business name VicRoads. The Chief Executive is the PHIL LOVEL sole member of the corporation and is responsible for managing EXECUTIVE DIRECTOR, VICTORIAN TRANSPORT ASSOCIATION its affairs. The corporation has delegated many of its statutory JENNY DALE1 powers in accordance with the legislation. MAYOR, INDIGO SHIRE COUNCIL RAY SHUEY CORPORATE STRUCTURE ASSISTANT COMMISSIONER, TRAFFIC AND OPERATIONS SUPPORT DEPARTMENT, VICTORIA POLICE The VicRoads Advisory Board, the Corporate Management Group, the Management Committee and Audit Committee assist BRIAN BAQUIE DIRECTOR, RACV the Chief Executive in his duties. This corporate structure BILL NOONAN provides for the organisation’s effective corporate governance. SECRETARY/TREASURER, TRANSPORT WORKERS UNION OF AUSTRALIA (VICTORIAN/TASMANIAN BRANCH), MEMBER VICROADS AUDIT COMMITTEE

ADVISORY BOARD JIM HINTON The Advisory Board, also established under the Transport Act, MEMBER, TRANSPORT COMMITTEE, VICTORIAN FARMERS FEDERATION provides the Chief Executive with advice on the following: SUE CHRISTOU VICROADS STAFF MEMBER >> The needs of the Victorian community with regard to the JOHN LIDDELL provision of road and road user services and the development VICROADS STAFF MEMBER and maintenance of effective policy and strategic responses to ROBERT KRIEK these needs VICROADS STAFF MEMBER >> The impact of government strategies and policies on the ALAN COLLINS MAYOR, RURAL CITY OF MILDURA, IN DECEMBER 2002. MAYOR,

programs, operations and future directions of the Corporation MANAGER, VICROADS CORPORATE SECRETARIAT, SECRETARY TO THE BOARD 1 OF ANN COX, INTERIM APPOINTMENT FOLLOWING THE DEATH and its services >> Future needs for road services including integrated and multi-modal transport services >> Using new and improved technology for providing better road services >> Fostering working relationships with user groups across the community and industry in developing road services >> Communicating with the public about the Corporation’s programs >> Any other matters referred to the Board by the Minister, the Secretary of the Department of Infrastructure or the Chief Executive. [57] CORPORATE GOVERNANCE CORPORATE

CORPORATE MANAGEMENT GROUP CORPORATE MANAGEMENT GROUP AT 30 JUNE 2003 The role of the Corporate Management Group is to assist the DAVID ANDERSON* CHIEF EXECUTIVE Chief Executive in: PETER BALFE * >> Monitoring the external environment and identifying DEPUTY CHIEF EXECUTIVE significant corporate issues to which VicRoads needs to GILLIAN MILES* respond DIRECTOR REGIONAL SERVICES >> Developing strategic directions for VicRoads businesses and DOUG THOMPSON* establishing medium and long-term goals DIRECTOR FINANCE PETER MITCHEM* >> Providing leadership to the Corporation, particularly in terms DIRECTOR COMMERCIAL SERVICES

of the VicRoads culture, philosophies and values, and to GARY LIDDLE * ensure personnel within the organisation develop to their DIRECTOR MAJOR PROJECTS

maximum potential BRUCE VAN EVERY GENERAL MANAGER ROAD SYSTEM MANAGEMENT >> Establishing frameworks and targets for annual business plans TED VINCENT >> Finalising the organisation’s consolidated business plans. GENERAL MANAGER TRAFFIC AND ROAD USE MANAGEMENT

GEOFF SHANKS GENERAL MANAGER REGISTRATION AND LICENSING

ERIC HOWARD GENERAL MANAGER ROAD SAFETY

JUDITH PETTITT GENERAL MANAGER HUMAN RESOURCES

JOHN MCNALLY T 30 JUNE 2003, MEMBERS OF THE MANAGEMENT COMMITTEE. CHIEF INFORMATION OFFICER *A [58]

GARY LIDDLE GILLIAN MILES PETER MITCHEM

DAVID ANDERSON PETER BALFE DOUG THOMPSON

DAVID ANDERSON GARY LIDDLE CHIEF EXECUTIVE DIRECTOR MAJOR PROJECTS David Anderson was appointed Chief Executive of VicRoads in Gary Liddle has 32 years of service with VicRoads and its October 2001. predecessors, having joined the Country Roads Board in 1971 as a David joined the Country Roads Board, predecessor of VicRoads, in 1967. cadet. Prior to his current appointment in 2000, Gary was General He has worked in road and bridge design and construction, materials Manager Road System Management. Other senior appointments technology, road planning and corporate planning. His previous include those of Project Manager for the Eastern Freeway and the appointments at VicRoads include Director Regional Services, General Ballarat Bypass major road projects. He worked with the United Manager Road Safety, Director Business Services and Regional Manager Kingdom Highways Agency for a short period in late 1999. Ballarat. He has also worked overseas with a firm of consultants in the Gary’s achievements include managing integration of land form, United Kingdom and at the University of California (USA). landscaping and noise walls for the Eastern Freeway extension Between 1994 and 1998, David was Program Manager for the Austroads (Doncaster to Springvale Roads), which won several architectural Road Use Management Program, then Program Manager for the awards. He was also responsible for the recent introduction of an Technology and Environment Program. He is now a Council Member of electronic project management system in VicRoads Major Projects. Austroads, the Australasian organisation of road authorities, as well as Gary has a Bachelor of Civil Engineering and a Graduate Diploma in current Chairman of the Australian Chapter of the Road Engineering Management. Association of Asia and Australasia (REAAA) and a Member of the REAAA Governing Council. He is also Chairman of the VicRoads Advisory Board, Chairman of the Victorian Road Freight Advisory Council and Chairman of GILLIAN MILES the Victorian Bicycle Advisory Council. DIRECTOR REGIONAL SERVICES David holds a Master of Business Administration degree and Master Prior to joining VicRoads in February 2002, Gillian Miles worked for of Science in Transportation degree, as well as degrees in the Department of Natural Resources and Environment as Regional engineering. He is a Fellow of the Institution of Engineers, Australia, Manager and Director Corporate Communication and Information. and a Member of the Institute of Public Administration Australia. Gillian was responsible for leading a number of organisational In June 2000, David was awarded the Public Service Medal. change programs including development of the new business model for VicRoads Regional Services. She has also worked for a number of other public sector organisations including Manningham City Council PETER BALFE and the Department of Planning and Development, where she led DEPUTY CHIEF EXECUTIVE strategic business development activities in the areas of customer Peter Balfe has 38 years of service with VicRoads and its predecessors, service, marketing and public relations. Work at the Victorian having joined the organisation in 1964. His previous appointments at Association of Youth in Communities and the Red Cross Blood Bank VicRoads include those of Director Major Projects and General focussed on educational and community engagement activities. Manager Road System Management. His achievements include a key Gillian has a Masters degree in Cultural Studies and a Bachelor of role in establishing and guiding the business planning process and Education (Media/Art). establishment of the VicRoads contract management system and design and construction specifications. PETER MITCHEM Peter is the National Program Manager for the Austroads Road System Management Program, and is a Director of ARRB Transport Research. DIRECTOR COMMERCIAL SERVICES Peter Mitchem joined VicRoads in March 2002. As Director Peter has a Bachelor of Engineering (Civil) and a Master of Engineering Commercial Services he leads a division that provides a range of Science, and is a Fellow of the Institution of Engineers, Australia. services including design, geotechnical services, property services, engineering, information services, desktop services and international DOUG THOMPSON project management to VicRoads and other clients on a commercial DIRECTOR FINANCE basis. Doug Thompson joined the organisation in 1963. Under Doug’s Peter previously held senior roles in the grain industry and worked as direction, the Finance Department has adopted full accrual a business consultant. He worked with the Grain Elevators Board accounting for management and reporting, and a fully integrated from 1985 to 1995, when it was privatised. As a business consultant, financial management system has been developed and implemented. Peter developed marketing material and prospectuses for a Other achievements in recent years include the introduction of consortium of property developers. electronic banking, payment of suppliers by electronic funds transfer, Peter holds a Bachelor of Arts degree and a Masters of Education electronic commerce and electronic leave and payroll applications. Studies (Administration). He is a Fellow of Chartered Secretaries Before his current appointment, Doug was Manager Resources. Australia. Doug has undertaken studies in accounting, management accounting and electronic data processing and is a Certified Practising Accountant. He is a member of the Australian Society of Certified Practising Accountants. [59] CORPORATE GOVERNANCE CORPORATE ERIC HOWARD JUDITH PETTITT JOHN MCNALLY

BRUCE VAN EVERY TED VINCENT GEOFF SHANKS

BRUCE VAN EVERY Eric is a member of an international OECD committee reporting on Ageing and Transport – Mobility Needs and Safety Issues, a member GENERAL MANAGER ROAD SYSTEM MANAGEMENT of the National Road Safety Strategy Panel and a Director of the Bruce Van Every re-joined VicRoads in 2000 as Regional Manager Monash University Accident Research Centre. Northern Victoria after 10 years in local government and 18 years He holds a degree in civil engineering, is a Fellow of the Institution previously with VicRoads. Early in 2002 he moved from Bendigo to of Engineers, Australia, and a Member of the Institute of Company take up his current appointment. Bruce has served at state and Directors. national levels on committees of Austroads, the Municipal Engineering Institute and the Institution of Engineers Australia. His strengths include fiscal/project management and working with JUDITH PETTITT people. His extensive academic achievements include a Bachelor of GENERAL MANAGER HUMAN RESOURCES Civil Engineering, a Master of Science from Massachusetts Institute of Judith Pettitt joined VicRoads in 2001 following three years as Technology and an MBA. He is currently undertaking doctoral studies Director Human Resouces in the Department of Natural Resources on ‘Setting Service Standards in the Public Sector’. and Environment. She has since worked to develop and implement the VicRoads human resources strategy Great People–Smart Services. TED VINCENT Judith’s background combines qualifications and expertise in human GENERAL MANAGER TRAFFIC AND ROAD USE MANAGEMENT resources and education and training. She holds a degree in Ted Vincent has worked for VicRoads and its predecessor Economics from Monash University and a Diploma of Education from organisations for more than 30 years. His previous senior the University of Melbourne. During the last two years she has been appointments have been Project Manager Eastern Freeway, Regional an active member of the Australian Human Resources Institute Manager Western Victoria, Manager Road Safety Strategies and (AHRI), regularly presenting papers at conferences and taking a role Programs, and Manager Vehicle Registration. He was appointed with the Victorian Council of AHRI. General Manager Traffic and Road Use Management in 2002, and is responsible for developing polices and strategies related to the JOHN MCNALLY* operation of the arterial road system in Victoria. Ted’s academic qualifications include a Diploma of Civil Engineering, a Post-Graduate CHIEF INFORMATION OFFICER Certificate in Traffic Planning and Control, and a Master of John McNally joined the former Road Traffic Authority (Victoria) in Engineering Science in transport. 1987, and has held a range of positions including Manager – Information Technology Planning, Manager – Information Technology Business Solutions, General Manager – Information GEOFF SHANKS Technology and Telecommunications (IT&T) and General Manager – GENERAL MANAGER REGISTRATION AND LICENSING IT&T Strategic Development. In May 2003, he was appointed to the In 1980, Geoff Shanks joined the Road Safety and Traffic Authority, newly created position of Chief Information Officer. one of VicRoads predecessors, initially on secondment from the His significant achievements include outsourcing of IT&T services, the Education Department, where he was a secondary school science development of a three-year strategic plan IT@VicRoads for teacher for a number of years. He has held a number of senior continuous development of VicRoads information technology (IT) positions within the organisation, in the areas of road safety, capabilities and the development of a sourcing strategy for future registration and licensing policy and program development. delivery of IT services. In 1996, Geoff was appointed Regional Manager Metropolitan South John also fulfils the role of President of the Association of Social East Region, and in 2000 was appointed to his current position. Clubs for VicRoads. Geoff holds Bachelor of Education and Master of Educational Studies He has a Bachelor of Science from Monash University. degrees from Monash University. *NOTE. JOHN FORD WAS ACTING GENERAL MANAGER OF IT&T FOR THE PERIOD JULY 2002 TO MAY 2003, WHILE JOHN MCNALLY WAS DEVELOPING A THREE- YEAR STRATEGIC INFORMATION TECHNOLOGY PLAN FOR VICROADS CALLED ERIC HOWARD IT@VICROADS. GENERAL MANAGER ROAD SAFETY Eric Howard joined VicRoads in 1998 from the Shire of Yarra Ranges, where he was Chief Executive Officer. He had previously held senior engineering and executive management positions with the City of Melbourne, during a period of considerable reform. Since joining VicRoads he has been instrumental in developing leading road safety initiatives including the Victorian Road Safety Strategy, arrive alive!, and SafeRoads, a partnership with Municipal Association of Victoria, LGPro, Victoria Police, Transport Accident Commission and the Royal Automobile Club of Victoria to assist local government to address road safety issues. [60]

MANAGEMENT COMMITTEE AUDIT COMMITTEE MEMBERS AT 30 JUNE 2003 The Management Committee assists the Chief Executive to: DAVID ANDERSON (CHAIRMAN) CHIEF EXECUTIVE >> Monitor and co-ordinate the organisation’s business PETER BALFE performance against agreed targets DEPUTY CHIEF EXECUTIVE

>> Address issues of resource usage to maximise efficient and ROGER BANKS effective service delivery PAST MEMBER VICROADS ADVISORY BOARD >> Review annual business plans. BILL NOONAN At 30 June 2003, the Management Committee comprised those MEMBER VICROADS ADVISORY BOARD Corporate Management Group members indicated by an asterisk BOB MCDONALD in the organisation chart opposite. DEPARTMENT OF INFRASTRUCTURE AUDIT COMMITTEE AUDIT The Audit Committee acts as an advisory body to the Chief In accordance with the Financial Management Act 1994, the Executive on issues relating to internal and external audit, Auditor-General inspects and audits the financial position of financial and other forms of accountability. VicRoads. The Victorian Auditor-General reports annually to the Minister for Transport on the outcome of his audit of the Its objectives are as follows: organisation’s financial statements. >> Assist the Chief Executive to make informed decisions regarding accounting policies, practices and disclosures INTERNAL AUDIT >> Support measures to improve management performance and VicRoads outsourced its internal audit function to KPMG in internal control within the organisation January 2003 (Ernst and Young previously performed this internal audit function over a period of five years until the end of 2002). >> Consider and make recommendations with respect to the analyses, appraisals, recommendations, counsel and KPMG’s role is to provide a high quality, responsive service in information provided by the auditors with respect to the which VicRoads business processes and internal control soundness, adequacy and applicability of VicRoads financial environment are independently audited. The aims are to provide quality and cost-effectiveness, and to minimise risk. KPMG and other systems, procedures and controls and their reports the results of its audits to the Audit Committee. effectiveness in supporting the delivery of the organisation’s business at reasonable cost INTEGRITY OF PERSONNEL >> Oversee fraud control, security issues and risk management In 2002, a revised Code of Conduct and Ethics for VicRoads was >> Monitor action taken by management to resolve issues raised issued to staff. The Code outlines how VicRoads conducts its by internal and external audit business and how clients and colleagues are treated. The Code >> Make recommendations in relation to developing an refers to VicRoads continuing commitment to Equal Employment appropriate and ethical environment. Opportunity and to Occupational Health and Safety principles and practices. Confidentiality guidelines are provided for dealing with personal and confidential information. EXECUTIVE OFFICER REMUNERATION VicRoads has an Executive Remuneration Committee to endorse all executive remuneration proposals and provide quality assurance of the process used to determine pay outcomes. OFFICER CHIEF INFORMATION JOHN MCNALLY* HUMAN RESOURCES GENERAL MANAGER JUDITH PETTITT* ROAD SAFETY GENERAL MANAGER ERIC HOWARD* LICENSING REGISTRATION AND GENERAL MANAGER GEOFF SHANKS* MANAGEMENT TRAFFIC ANDROADUSE GENERAL MANAGER TED VINCENT* MANAGEMENT ROAD SYSTEM GENERAL MANAGER BRUCE VAN EVERY* VICROADS ORGANISATION 2002–03 CHART SUPPORT REGIONAL SERVICES MANAGER BILL HOOKER SOUTH WESTERN REGIONAL MANAGER ROB FREEMANTLE WESTERN REGIONAL MANAGER LANCE MIDGLEY NORTHERN REGIONAL MANAGER MAL KERSTING NORTH EASTERN REGIONAL MANAGER BRUCE SWEET EASTERN REGIONAL MANAGER PETER MCCULLOCH METRO SOUTHEAST REGIONAL MANAGER BRUCE GIDLEY METRO NORTH WEST REGIONAL MANAGER BRIAN NEGUS REGIONAL SERVICES DIRECTOR GILLIAN MILES* GEELONG BYPASS MANAGER ACTING PROJECT FRANK DESANTIS TRAM ROUTE109 PROJECT MANAGER RUSSELL BITTNER CALDER CORRIDOR PROJECT MANAGER RICHARD WARWICK PROJECT NATIONAL HIGHWAY ALBURY-WODONGA PROJECT MANAGER BILL PEYTON EASTERN PROJECTS PROJECT MANAGER RICHARD WARWICK HALLAM BYPASS PROJECT MANAGER TREVOR BOYD CRAIGIEBURN BYPASS PROJECT MANAGER GEORGE MAVROYENI MAJOR PROJECTS DIRECTOR GARY LIDDLE* INVESTIGATIONS PLANNING MANAGER CLIVE MOTTRAM SERVICES ENVIRONMENTAL MANAGER SHARON MACDONNELL DAVID ANDERSON* CHIEF EXECUTIVE PETER BALFE* MEDIA ANDEVENTSUNIT MANAGER JENNIFER HOWARD LEGAL SERVICES MANAGER MARK MILLER EXECUTIVE SERVICES MANAGER SUE ANDERSON CORPORATE SECRETARIAT MANAGER ALLAN COLLINS CORPORATE PUBLICATIONS MANAGER JOHN E.SCULLY CORPORATE PLANNING MANAGER ALICIA GROGAN-JONES CONTRACT SERVICES MANAGER REX ATKINS EXECUTIVE DEPUTY CHIEF PETER MITCHEM* DESKTOP SERVICES MANAGER JOHN F. FORD PROPERTY SERVICES MANAGER GERRY TURNER SPRAYLINE GENERAL MANAGER ROBERT SNOWDEN INFORMATION SERVICES ACTING MANAGER PHIL REID AND SURVEY LAND INFORMATION MANAGER FRANK CULLIVER GEOPAVE MANAGER STEVE BROWN VICROADS DESIGN MANAGER JOHN CUNNINGHAM INTERNATIONAL PROJECTS MANAGER ANDREW HOUGHTON MANAGEMENT BUILDINGS ANDFACILITIES MANAGER BERNARD TOULET COMMERCIAL SERVICES DIRECTOR DOUG THOMPSON* DIRECTOR FINANCE

* MEMBERS OF THE CORPORATE MANAGEMENT NOTE. ALL GENERAL MANAGERS AND THE GROUP ARE INDICATED BY AN ASTERISK IN CIO REPORT TO DIRECTOR FINANCE FOR THIS ORGANISATION CHART. ADMISTRATIVE MATTERS [ 61 CORPORATE GOVERNANCE ] [62] [63] FINANCIAL MANAGEMENT

FINANCIAL MANAGEMENT [64]

FINANCIAL MANAGEMENT

A number of initiatives were implemented during the year to SOURCES OF FUNDING improve the financial management and support of VicRoads Most VicRoads funding comes from Federal and State activities. Government annual budgets. Key highlights for 2002–03 are listed below: VicRoads also generates some revenue from fee-for-service The major upgrade of VicRoads core program and resource charges and activities. management system (PARMS) was completed to provide a more Under existing Australian Land Transport Development Fund user-friendly and versatile system offering many immediate legislation, tied Federal Government grants are restricted to benefits including: the national highways network and declared Roads of National >> A standard Windows Client Graphical User Interface which Importance. The balance of funds made available for roads by has greatly improved useability and functionality the Federal Government are for projects identified under the National Black Spot Programme and interstate road transport >> The ability to connect to third parties enabling VicRoads to improve a number of business processes maintenance funding. In 2002–03, the Federal Government contributed $158m to >> The provision of screen sensitive online help. VicRoads programs. This represented tied federal grants for Future benefits from this upgrade will include: national highways and Roads of National Importance of $137.9m, >> An e-sourcing interface a decrease of $111.7m from 2001–02. An amount of $10.4m was >> Functionality to improve the administration of contracts provided for Road Safety Accident Blackspots, an increase of $1m from 2001–02. Funds of $9.7m were contributed for maintaining Further development of third party connections >> interstate transport routes, an increase of $1.3m from 2001–02. >> The ability to use a graphical reporting tool known as The State Government contributed $545.3m to providing outputs Business Objects to improve internal and external reporting. and additions for the net-asset base. The decrease of $17.1m from The administration of VicRoads commercial and passenger motor 2001–02 related to a number of specific projects, including the vehicle and road maintenance plant fleet operations was upgrading of a number of metropolitan arterial roads and the streamlined, reducing annual operating overheads while phasing down of the Statewide Blackspot Program. maintaining service levels. The $240m Statewide Blackspot Program contributes to A comprehensive project to revalue the Victorian declared road improvement of road safety throughout Victoria, and is designed network was completed. This included the revaluation of all to reduce trauma and suffering caused to victims of road crashes, roads, bridges, traffic signals, traffic control systems and sound their families and friends. This was the final year of the three barriers controlled by VicRoads. year program, although some works commenced in the 2002–03 Development of user-friendly human resources, payroll, finance financial year will continue into 2003–04. and project control graphical reports continued, using PARMS Funding for the program was allocated as follows: data and Business Objects reporting software. >> Fifty per cent of funds were spent on country roads including provincial towns and cities FINANCIAL PERFORMANCE Fifty per cent of funds were spent on roads in the Melbourne VicRoads reports a $33.85m deficit for the 2002–03 financial year, >> statistical division, which comprises the inner municipalities a $121.64m decrease from the reported surplus for 2001–02. of Melbourne and the outer municipalities of Mornington Comparative results for the past five financial years are shown below. Peninsula, Casey, Cardinia, Yarra Ranges, Nillumbik, Whittlesea, Hume, Melton and Wyndham OPERATING SURPLUS/(DEFICIT) $M >> Twenty-five per cent of the program’s total funding was used 2002–03 (33.85) for improvements to local roads 2001–02 87.79 >> Up to 20 per cent of the program’s total funding was provided for potential blackspot/black length projects in Victoria. 2000–01 146.57 The Better Roads Victoria program was introduced in July 1993, 1999–2000 33.90 and is fully funded by a fuel levy of three cents per litre on all 1998–99 (21.24) petrol and diesel sales. One-third of funds raised by this levy are directed to rural road projects and two-thirds to metropolitan road projects. These projects contribute to Victoria’s economic development through reduced transport costs and increased efficiency of arterial roads. [65] FINANCIAL MANAGEMENT

The Better Roads Victoria program provided funding of $152.3m >> The rural local timber roads category provides assistance for in 2002–03, a decrease of $25.1m from 2001–02. municipalities in reconstructing and upgrading local roads The Better Roads Victoria program comprises the following that are affected by the transport of significant quantities of categories: timber from forests and plantations on Crown Land to sawmills on the arterial road system. >> Rural arterial road projects, which provide transport safety and efficiency improvements, in which regional and trade >> Metropolitan arterial road projects, which include the development are targeted widening and duplication of existing arterial roads and bridges that serve regional and trade development. Duplication >> Rural arterial bridge upgrading projects, in order to is a road improvement where the road’s capacity for traffic is improve the capacity and safety of bridges on rural increased by building additional traffic lanes separated from arterial roads the existing road by a central median. >> Rural arterial road reconstruction ‘catch-up’ projects, in order >> Metropolitan major network improvement projects, which to restore the condition of roads. Common treatments include provide strategic improvements for the urban road system. This reconstruction of the road pavement, re-sheeting and sealing work includes linking and upgrading strategic roads in order to of road surfaces and major patching provide a continuous and efficient major road network that >> Projects for State-impacted rural local roads. These involve contributes to the development of trade, economy and the city. reconstruction and and upgrading of local roads for which >> Metropolitan arterial road traffic management projects, which the nature and volume of traffic is, or has been, significantly provide low-cost improvements for traffic management. These affected by Victorian Government initiatives or factors of a are designed to enhance the use of available road space and State-related nature improve the flow of traffic.

COMPOSITION OF VICROADS FUNDING SOURCES

1998–99 1999–2000 2000–01 2001–02 2002–03 $M $M $M $M $M FEDERAL GOVERNMENT National highways >> Construction 41.7 39.9 43.9 131.6 50.7 >> Asset preservation, minor works and bridge assessment 38.9 30.9 23.6 31.9 32.5 Roads of National Importance (RONI) 15.0 20.3 10.6 86.1 54.7 Road safety: accident blackspots 6.8 10.6 9.1 9.4 10.4 Federal interstate registration scheme (FIRS) 4.8 6.1 7.1 8.4 9.7 Untied arterial road grants for roads managed by VicRoads 87.9 87.5 Note 1 Note 1 Note 1

Total Federal Government funding 195.1 195.3 94.3 267.4 158.0 ACT 1983. TRANSPORT STATE GOVERNMENT >> Budgetary allocation to VicRoads > Outputs 320.7 304.7 454.8 453.8 497.0 > Increase in net assets 15.5 48.8 52.3 108.6 48.3 >> Better Roads Victoria Program 128.7 126.0 190.9 177.4 152.3 Total State Government funding 464.9 479.5 698.0 739.8 697.6 Commission for collecting TAC premiums (Note 2) 13.9 14.1 17.4 17.4 20.8 VicRoads (own source and contributions) 97.9 109.7 109.6 119.9 137.7 ARRANGEMENTS WERE ARE MANAGED BY VICROADS CEASED WHEN THE NEW TAXATION 2000. IN 2000-01, THESE GRANTS WERE ABSORBED INTO WIDER INTRODUCED ON 1 JULY DISTRIBUTION OF GST REVENUES TO THE STATES. OF VICROADS OF THE GOVERNMENT’S APPROVAL TO VICROADS OUTPUTS IS APPROVED AS PART PROGRAMS AS REQUIRED UNDER THE Total 771.8 798.6 919.3 1144.5 1014.1 NOTE 1 ROADS THAT GRANTS FOR ARTERIAL OF UNTIED FINANCIAL ASSISTANCE FEDERAL PAYMENTS NOTE 2 THESE FUNDS ARE DISTRIBUTED TO COMPLEMENT OTHER SOURCES OF FUNDS. THEIR APPLICATION [66]

COMPOSITION OF VICROADS FUNDING SOURCES

$m FEDERAL GOVERNMENT 140 $MILLION

120

100 Construction

80 Asset preservation, minor works and bridge assessment

60 Roads of National Importance

Road safety: accident blackspots 40 Federal Interstate Registration Scheme (FIRS) 20 Untied arterial road grants for roads managed by VicRoads 0 1998–99 1999–2000 2000–01 2001–02 2002–03

COMPOSITION OF VICROADS FUNDING SOURCES STATE GOVERNMENT AND OTHER $m $MILLION 1000

800

600 Outputs

Increase in net assets 400 Better Roads Victoria program

200 Transport Accident Commission fees

VicRoads 0 1998–99 1999–2000 2000–01 2001–02 2002–03

REVENUE COLLECTED ON BEHALF OF THE STATE GOVERNMENT AND OTHER AGENCIES

1998–99 1999–2000 2000–01 2001–02 2002–03 $M $M $M $M $M Driver licences 18.4 18.6 37.9 57.7 56.1 Registration 420.8 429.4 448.7 469.0 491.2 Stamp duty 267.7 271.9 291.7 319.2 490.6 Transport Accident Commission Fees 844.8 864.8 944.7 1004.3 1064.3 Federal interstate registrations 11.3 12.3 14.7 16.7 19.6 Other 26.9 34.0 32.5 33.4 36.8

VICROADS COLLECTS REVENUE FOR THE STATE CONSOLIDATED FUND FROM SOURCES THAT INCLUDE MOTOR VEHICLE REGISTRATION, DRIVER LICENCES, STAMP DUTY AND OTHER RELATED CHARGES. VICROADS ALSO ACTS AS AN AGENT IN THE COLLECTION OF TRANSPORT ACCIDENT COMMISSION (TAC) INSURANCE PREMIUMS AND FEDERAL INTERSTATE REGISTRATIONS. [ 67] VICROADS FINANCIAL REPORT – 30 JUNE 2003

ROADS CORPORATION FINANCIAL REPORT – 30 JUNE 2003

68 STATEMENT OF FINANCIAL PERFORMANCE 69 STATEMENT OF FINANCIAL POSITION 70 STATEMENT OF CASH FLOWS 71 NOTES TO THE FINANCIAL STATEMENTS 107 ACCOUNTABLE OFFICER’S DECLARATION 108 AUDITOR-GENERAL’S REPORT

THE ROADS CORPORATION IS A STATUTORY AUTHORITY OF THE STATE OF VICTORIA. THE CORPORATION WAS ESTABLISHED UNDER THE TRANSPORT ACT 1983. ITS PRINCIPAL ADDRESS IS: ROADS CORPORATION 60 DENMARK STREET KEW VIC 3101 A DESCRIPTION OF THE NATURE OF THE CORPORATION’S OPERATIONS AND ITS PRINCIPAL ACTIVITIES IS INCLUDED IN THE REPORT OF OPERATIONS. [ 68]

STATEMENT OF FINANCIAL

PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2003

NOTES 2003 2002 $’000 $’000

REVENUE FROM ORDINARY ACTIVITIES Appropriations 807,232 898,541 Revenues from other parties 25,709 25,002 Regulatory, licence and other revenue 117,256 176,602 Proceeds from sale of other assets 16,542 3,683 2 966,739 1,103,828

EXPENSES FROM ORDINARY ACTIVITIES Employee benefits expense 255,713 165,018 Depreciation and amortisation expense 246,708 226,670 Municipal claims and school crossings 115,649 109,933 Assets provided free of charge - 101 Capital asset charge 47,400 47,400 Supplies and services 311,171 344,053 Properties incorporated into roadworks 13,068 39,322 Book value of assets sold 10,880 2,454 Other expenses from ordinary activities - 81,083 3(a) 1,000,589 1,016,034

Net result for the reporting period 15(c) (33,850) 87,794 Net increase in asset revaluation reserve 15(a) 618,642 925,740 Decrease in retained profits on adoption of revised accounting standard AASB 1028 Employee Benefits 15(c) (207) - Total changes in equity other than those resulting from transactions with Victorian State Government in its capacity as owner 584,585 1,013,534

The above statement of financial performance should be read in conjunction with the accompanying notes. [ 69] STATEMENT OF FINANCIAL POSITION STATEMENT

STATEMENT OF FINANCIAL

POSITION FOR THE YEAR ENDED 30 JUNE 2003

NOTES 2003 2002 $’000 $’000

CURRENT ASSETS Cash assets 4 30,703 70,496 Receivables 5 36,859 37,102 Inventories 6 4,718 3,872 Prepayments 1,611 1,683 Advances 7 7 Total current assets 73,898 113,160

NON-CURRENT ASSETS Advances 7 14 Property loans 7 140 140 Land, buildings and leasehold improvements 8 66,046 37,705 Properties acquired for roadworks 9 715,970 660,121 Assets in commercial use 10 27,380 19,694 Fixed assets 11 40,976 35,982 Infrastructure assets 12 15,949,566 15,347,825 Total non-current assets 16,800,085 16,101,481 Total assets 16,873,983 16,214,641

CURRENT LIABILITIES Payables 13 139,665 170,258 Provisions 14 61,596 55,312 Total current liabilities 201,261 225,570

NON-CURRENT LIABILITIES Provisions 14 481,779 430,604 Total non-current liabilities 481,779 430,604 Total liabilities 683,040 656,174

NET ASSETS 16,190,943 15,558,467

EQUITY Contributed capital 15(b) 14,151,967 14,104,076 Reserves 15(a) 2,750,564 2,131,922 Accumulated deficit 15(c) (711,588) (677,531) Total equity 15(d) 16,190,943 15,558,467

The above statement of financial position should be read in conjunction with the accompanying notes. [ 70]

STATEMENT OF

CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2003

NOTES 2003 2002 $’000 $’000

CASH FLOWS FROM OPERATING ACTIVITIES Receipts from Government 807,232 898,541 Receipts from other parties 26,876 25,159 Payments to suppliers and employees (634,482) (653,253) Capital asset charge (47,400) (47,400) GST paid (79,919) (81,590) 72,307 141,457 GST recovered from ATO 65,011 70,139 Interest received 839 457 Other revenue 107,350 102,312 GST collected 9,240 7,557 Net agency collections 4,238 5,905 Net cash inflow from operating activities 24 258,985 327,827

CASH FLOWS FROM INVESTING ACTIVITIES Payments for purchase of non-current assets (362,779) (395,421) Payments for asset sale proceeds (1,342) (4,501) Proceeds from sale of assets 3(b) 17,043 9,025 Net cash (outflow) from investing activities (347,078) (390,897)

CASH FLOWS FROM FINANCING ACTIVITIES Receipts from Government 48,300 108,547 Net cash inflow from financing activities 48,300 108,547

Net increase (decrease) in cash held (39,793) 45,477 Cash at the beginning of the financial year 70,496 25,019 Cash at the end of the financial year 4 30,703 70,496

The above statement of cash flows should be read in conjunction with the accompanying notes. [ 71] NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL

STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003

CONTENTS PAGE

Note 1. Summary of significant accounting policies 72 Note 2. Revenue from ordinary activities 79 Note 3. Result for the reporting period 81 Note 4. Cash assets 83 Note 5. Receivables 83 Note 6. Inventories 84 Note 7. Property loans 84 Note 8. Land, buildings and leasehold improvements 85 Note 9. Properties acquired for roadworks 87 Note 10. Assets in commercial use 88 Note 11. Fixed assets 89 Note 12. Infrastructure assets 90 Note 13. Payables 92 Note 14. Provisions 94 Note 15. Equity and movements in equity 96 Note 16. Financial instruments 98 Note 17. Ministers and Accountable Officers 101 Note 18. Remuneration of executives 102 Note 19. Remuneration of auditors 103 Note 20. Contingent liabilities and contingent assets 103 Note 21. Commitments for expenditure 104 Note 22. Employee benefits 105 Note 23. Ex-gratia payments 105 Note 24. Reconciliation of net result for the reporting period to net cash inflow from operating activities 106 [ 72]

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING

POLICIES NOTE 1 FOR THE YEAR ENDED 30 JUNE 2003

This general purpose financial report of the Corporation (D) REVENUE RECOGNITION has been prepared in accordance with the Financial Amounts disclosed as revenue are, where applicable, Management Act 1994, Accounting Standards, and other net of returns, allowances, duties and taxes. Revenue mandatory professional reporting requirements in Australia. is recognised as follows: It is prepared in accordance with the historical cost (i) APPROPRIATIONS convention, except for certain assets and liabilities, which, Government appropriation revenue is recognised when as noted, are at valuation. The accounting policies adopted, received by the Corporation. and the classification and presentation of items, are consistent with those of the previous year, except where a (ii) REVENUE FROM OTHER PARTIES change is required to comply with Accounting Standards Revenue in respect of services or works provided by and other mandatory reporting requirements in Australia, the Corporation is recognised at the point of service or an alternative accounting policy permitted by Accounting delivery or when the revenue comes under the control Standards is adopted to improve the relevance and of the Corporation. reliability of the financial report. Where practicable, (iii) REGULATORY, LICENCE AND OTHER FEES comparative amounts are presented and classified on Regulatory, licence and other fee revenue is recognised a basis consistent with the current year. when received by the Corporation. (A) CASH ASSETS (iv) EXTERNAL WORKS For the purposes of the statement of cash flows, cash Revenue in respect of services or works provided by includes short-term deposits, which are readily convertible the Corporation is recognised at the point of service to cash on hand, and are subject to an insignificant risk of delivery or when the revenue comes under the control changes in value, net of outstanding bank overdrafts. of the Corporation. (v) RENT REVENUE (B) ROUNDING OF AMOUNTS Rent revenue is recognised by allocating minimum lease Amounts in the financial report have been rounded to payments to the statement of financial performance on a the nearest thousand dollars, or in other cases to the basis representative of the pattern of service rendered nearest dollar. through the provision of the leased property. (C) ACQUISITIONS OF ASSETS (vi) FINES AND PENALTIES The cost method of accounting is used for all acquisitions Fines and penalties revenue is recognised when received by of assets. Cost is measured as the fair value of the assets the Corporation. given up or liabilities undertaken at the date of acquisition, plus incidental costs directly attributable to the acquisition. (E) RECEIVABLES All debtors are recognised at the amounts receivable, as Assets acquired at no cost, or for nominal consideration, they are due for settlement at no more than 30 days from are initially recognised at their fair value at the the date of recognition. date of acquisition. Collectibility of debtors is reviewed on an ongoing basis. Debts, which are known to be uncollectible, are written-off. A provision for doubtful debts is raised when some doubt as to collection exists. [ 73]

NOTE 1. NOTES TO THE FINANCIAL STATEMENTS SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CONTINUED NOTE 1 FOR THE YEAR ENDED 30 JUNE 2003

(F) REVALUATIONS OF NON-CURRENT ASSETS Where items of plant and equipment have separately Subsequent to initial recognition as assets, non-current identifiable components, which are subject to regular physical assets, other than plant and equipment, are replacement, those components are assigned useful lives measured at fair value. Plant and equipment are measured distinct from the item of plant and equipment to which at cost. Revaluations are made with sufficient regularity to they relate. ensure that the carrying amount of each asset does not Depreciation rates for fixed assets have been set using the differ materially from its fair value at the reporting date. following useful lives: Carrying values are assessed annually and, if necessary, indexed or subject to a full revaluation to ensure they remain consistent with fair values. Full revaluations are ASSET TYPE TOTAL USEFUL LIFE conducted at least every three years. A complete revaluation was undertaken during 2002–03. Revaluations are Computers 4 years conducted in accordance with the Victorian Government Technical equipment 5–40 years Policy Revaluation of Non-Current Physical Assets. Furniture and fittings 10 years Revaluation increments are credited directly to the asset Survey equipment 8 years revaluation reserve, except that, to the extent that an Photographic 5 years increment reverses a revaluation decrement in respect of Weighbridges 40 years that class of asset previously recognised as an expense, the Office machines 5 years increment is recognised immediately as revenue in the Plant and motor vehicles 5–13 years statement of financial performance. Buildings 40 years Revaluation decrements are recognised immediately as Computer systems 10 years expenses in the statement of financial performance, except that, to the extent that a credit balance exists in the asset revaluation reserve in respect of the same class of assets, they are debited directly to the asset revaluation reserve. The useful lives of these assets have been reviewed as Revaluation increments and decrements are offset against required by Australian Accounting Standard AASB 1021 one another within a class of non-current assets. and are unchanged from 2001–02, with the exception of computers (5 years in 2001–02). The impact of this (G) DEPRECIATION AND AMORTISATION change is immaterial. (i) FIXED ASSETS (ii) INFRASTRUCTURE ASSETS Depreciation is charged on all fixed assets, excluding land In accordance with the determination of asset useful lives and earthworks, in order to write-off the cost of these by the utilisation of a relifing analysis, depreciation has assets over their useful lives to the Corporation. All fixed been calculated on a straight-line basis. assets are depreciated using the straight-line method with Depreciation rates have been set using the following due allowance for residual values. Estimates of remaining useful lives: useful lives are reviewed on an annual basis for all assets. A full year's depreciation is charged against the value of assets except for current year additions, improvements and disposals where depreciation commences or ceases in the month in which the asset is purchased or sold. [ 74]

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CONTINUED NOTE 1 FOR THE YEAR ENDED 30 JUNE 2003

COMPONENT TOTAL USEFUL LIFE The State’s declared road network includes: >> Road pavement Road pavement 60 years >> Earthworks Earthworks Indefinite >> Bridges Bridges 90 years >> Traffic control systems Traffic control systems 15–24 years >> Sound barriers Sound barriers (concrete) 90 years Work in progress Nil >> Work in progress. Infrastructure assets will be revalued every three years. Infrastructure revaluation took place in the financial year ended 30 June 2003. (iii) EARTHWORKS It has been determined by experts in infrastructure Infrastructure assets have been valued using the fair value valuations that earthworks have an indefinite useful approach to asset valuation. Assets have been valued based life to the Corporation, and therefore these assets are on the current replacement cost of a modern asset that is not depreciated. capable of delivering the same level of services as the existing asset written-down to take account of expired (iv) LEASEHOLD PROPERTIES service life. The valuations were completed by independent Expenditure on improvements to leasehold properties expert engineers in consultation with suitably qualified has been depreciated over the unexpired period of the engineers of the Corporation. lease or the useful life of the improvements, whichever is the shorter. For each asset component a number of stereotypes have been identified. These stereotypes represent the standard (H) NON-CURRENT ASSETS modern assets that the Corporation would install if it were (i) FIXED ASSETS to be deprived of its existing assets. Fixed assets have been included at cost. It is the Standard costs have been developed for each stereotype. Corporation's policy that all fixed assets are subject to an These standard costs or unit rates represent the cost annual physical stocktake and acquisitions with a value less to install the particular stereotype. Unit rates have than $1000 per item are expensed. In-house software been adjusted to take into account variations in development costing in excess of $100,000 is capitalised. regional conditions. (ii) INFRASTRUCTURE ASSETS Assets are valued at written-down current replacement The Corporation is responsible for the development and cost. The extent of the write-down is determined by the management of the State’s declared road network and has proportion of overall useful life that has expired. The total recognised this control aspect when valuing and reporting useful life of each asset stereotype has been calculated by infrastructure. The Corporation has valued and reported the utilising a relifing analysis. Relifing is a procedure which road network other than local government roads and the examines the elements of each asset component and Melbourne CityLink. derives a service life. [ 75]

NOTE 1. NOTES TO THE FINANCIAL STATEMENTS SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CONTINUED NOTE 1 FOR THE YEAR ENDED 30 JUNE 2003

ROAD PAVEMENT TRAFFIC CONTROL SYSTEMS The valuation policies adopted provide for roads to be Traffic control systems incorporate the following: valued at written-down current replacement cost. The >> Traffic signal control systems current replacement cost includes all costs associated >> Drive Time hardware with drainage, pavement, surfacing, roadside furniture, intersection, design, supervision and surveillance. >> Incident detection systems The expired life of each road was determined via the use of >> Help phone system the Age-Roughness equation developed as part of the 1984 >> Closed circuit television system National Association of Australian State Road Authorities >> Smart Bus system. (NAASRA) Roads Study. The valuation policies adopted provide for traffic control EARTHWORKS systems to be valued at written-down current replacement The valuation policies adopted provide for earthworks cost. The current replacement cost includes all costs to be valued at current replacement cost. The current associated with pedestals, wiring, controls, identification, replacement cost includes all costs associated with the associated works, design, supervision and surveillance. loosening, removing, depositing, shaping and compacting of SOUND BARRIERS soil or rock. The expert engineering opinion of both Roads Sound barriers are valued at written-down current Corporation and consultant engineers has determined that replacement cost. earthworks have an indefinite life. As a result earthworks WORK IN PROGRESS are not depreciated. However, where roads no longer form Major Works In Progress are valued at construction cost part of the active road network, the carrying out of any and exclude the cost of land under roads and on road replacement works will cause the original earthworks to be reserves, which are not being valued at this time. written-off for this reason. If the replacement or reduction is planned within a foreseeable period, then prospective (I) PROPERTIES ACQUIRED FOR ROADWORKS depreciation of the earthworks will occur over that period. (i) PROPERTY LIABILITIES AND COMMITMENTS The methodology for valuing earthworks builds on the In circumstances where: application of road stereotypes. Properties are the subject of a notice of compulsory LAND UNDER ROADS >> acquisition; or Land under roads and on road reserves has not been valued at this time, in accordance with AASB 1045. >> The Corporation has taken possession of the properties BRIDGES for the purpose of commencement of roadworks, and final settlement has not been achieved at balance date: The valuation policies adopted provide for bridges to be valued at written-down current replacement cost. The the acquisition is included as a liability based, wherever current replacement cost includes all costs associated with practicable, on a full independent valuation which substructure, support structure, deck, fittings, approaches, includes acquisition costs. As land under roads has design, supervision and surveillance. not been valued, where land is acquired for road development, such related costs are brought to account The West Gate Bridge has been considered separately and as assets in the Statement of Financial Position and are represents a stereotype on its own due to its complexity in expensed once the road development commences. size and structure. Where a notice of acquisition or formal possession has not occurred at balance date, appropriate commitments have been disclosed.

>> [ 76]

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CONTINUED NOTE 1 FOR THE YEAR ENDED 30 JUNE 2003

Included also is compensation payable to property (J) LAND AND BUILDINGS IN SERVICE, owners in respect of financial loss on properties ASSETS IN COMMERCIAL USE AND LAND affected by planning reservations. Compensation is HELD FOR RESALE determined pursuant to the provisions of the Planning In 2002–03, the Valuer-General revalued all properties and Environment Act 1987 and the Land Acquisition and at fair value, and any increase or decrease in value has Compensation Act 1986. Compensation payment is made been updated to the property values. within 30 days of agreement. Fair value has been assessed with reference to quoted (ii) PROPERTIES NOT INCORPORATED INTO ROADWORKS market prices and current market selling prices, in an It is the Corporation's policy to revalue all its properties active and liquid market, and with regard to any known acquired for roadworks every five years. The Valuer- restrictions on use. In the case of cash generating assets, General’s last full fair value valuation on all property assets regard has also been given to the net present value of cash was carried out as at 30 June 2003. flows of the subject property. In 2002–03, the Valuer-General revalued all properties and The Valuer-General’s last full fair value valuation on all land any increase or decrease in value has been updated to the and buildings in service, assets in commercial use and land property values. held for resale was carried out as at 30 June 2003. The new revalued amount has been calculated after (K) DISPOSAL OF SURPLUS ASSETS inspection of each property individually. These inspections In accordance with Section 66 (4)(b) of the Transport Act 1983 were undertaken during the months of March, April, the net proceeds arising from the disposal of certain assets May and June 2003 under the supervision of the of the Corporation are paid into the Consolidated Fund. Valuer-General’s Office. If the properties were within a road or freeway reservation on a planning scheme or were (L) PAYABLES subject to a public acqusition overlay, values were These amounts represent liabilities for goods and services significantly reduced to take account of such restrictions. provided to the Corporation prior to the end of the financial (iii) RESIDUAL LAND – ISOLATED FRAGMENTS year and which are unpaid. The amounts are unsecured and Following the completion of roadworks, the Corporation are usually paid within 30 days of recognition. retains many small and isolated fragmentsof land (M) GOODS AND SERVICES TAX (GST) representing residual property adjoining the road reservations. Revenues, expenses and assets are recognised net The fragments, although not part of the road reservation, of GST except where the amount of GST incurred is not have limited value and are recognised as such in the recoverable, in which case it is recognised as part of the financial statements of the Corporation. cost of acquisition of an asset or part of an item of expense. If at some future date an adjoining property owner The net amount of GST recoverable from, or payable to, the desires to purchase any such fragment of land, the revenue Australian Tax Office (ATO) is included as part of receivables from the sale of the property will be brought to account at or payables in the statement of financial position. The GST that time. component of a receipt or payment is recognised on a gross basis in the statement of cash flows in accordance with Accounting Standard AASB 1026 Statement of Cash Flows. [ 77]

NOTE 1. NOTES TO THE FINANCIAL STATEMENTS SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CONTINUED NOTE 1 FOR THE YEAR ENDED 30 JUNE 2003

(N) EMPLOYEE BENEFITS Superannuation entitlements estimated to be payable (i) WAGES, SALARIES, ANNUAL LEAVE AND TIME IN LIEU in the next 12 months are shown as a current liability. Liabilities for wages, salaries, annual leave and time in lieu In so far as the Transport Superannuation Scheme are recognised in respect of employees’ services up to the (excluding service relating to their members who had prior reporting date, and are measured as the amounts expected membership of the SERB Scheme) are concerned, the to be paid when the liabilities are settled. Corporation meets its ongoing liabilities under each scheme by making progressive payments to each (ii) LONG SERVICE LEAVE scheme in accordance with agreed contribution rates. A liability for long service leave is recognised, and is measured as the present value of expected future payments (iv) EMPLOYEE BENEFIT ON-COSTS to be made in respect of services provided by employees up Employee benefit on-costs, including payroll tax, are to the reporting date. Consideration is given to expected recognised and included in employee benefit liabilities and future wage and salary levels, experience of employee costs when the employee benefits to which they relate are departures and periods of service. Expected future recognised as liabilities. payments are discounted using interest rates on national CHANGE IN ACCOUNTING POLICY FOR EMPLOYEE BENEFITS government guaranteed securities with terms to maturity (ANNUAL LEAVE) that match, as closely as possible, the estimated future In the reporting periods prior to 30 June 2003, provisions cash outflows. The amount estimated to be payable in the for employee benefits (annual leave) were measured using next 12 months is shown as a current liability. remuneration rates current at reporting date. (iii) SUPERANNUATION For the period ending on 30 June 2003, the Corporation is required by AASB 1028 Employee Benefits to measure The main superannuation schemes to which provisions for employee benefits at remuneration rates the Corporation contributes are the State Superannuation expected to apply when the obligation is settled, including Scheme, the State Employees Retirement Benefits the expected future increase in remuneration rates. (SERB) Scheme, the Transport Superannuation Scheme and VicSuper. The transitional arrangements of AASB 1028 on adoption at 1 July 2002 give rise to an adjustment to opening annual In respect of the State Superannuation Scheme, the leave liabilities and a corresponding change to accumulated Corporation contributes to the cost of entitlements paid surplus/(deficit). on the retirement, death or incapacity of the contributor. The Corporation maintains a provision for the estimated The impact of this change is: employer portion of the unfunded superannuation >> Increase accumulated deficit $207,310 entitlements payable to contributors, which has been >> Increase annual leave provision $207,310 provided by the Government Superannuation Office. Likewise the unfunded superannuation entitlement in respect of the employment service of the Transport Superannuation Scheme members and the existing contributors and pensioners of the SERB Scheme have been provided by the Government Superannuation Office and has been taken up as a provision in the Corporation’s accounts. [ 78]

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CONTINUED NOTE 1 FOR THE YEAR ENDED 30 JUNE 2003

(O) RETENTIONS AND PROVISIONS (S) CAPITAL ASSET CHARGE Provisions representing contractor claims and other The capital asset charge is imposed by the Department of minor claims are calculated on the basis of present Treasury and Finance and represents the opportunity cost value at 30 June each year. of capital invested in the non-current physical assets used in the provision of outputs. The charge is calculated on the (P) COLLECTIONS ON BEHALF OF THE GOVERNMENT carrying amount of non-current physical assets (excluding OF VICTORIA AND AGENCIES infrastructure assets). The Corporation collects revenue as an agent for the Victorian Government and other Government Agencies, (T) CONTRIBUTED CAPITAL which does not constitute revenue of the Corporation. Consistent with UIG Abstract 38 Contributions by Collections not remitted to the Government of Victoria and Owners Made to Wholly-Owned Public Sector Entities other Government Agencies at balance date are included in appropriations for additions to net assets have been the balance sheet as both assets and liabilities. designated as contributed capital. Other transfers that are in the nature of contributions or distributions have also (Q) INVENTORIES been designated as contributed capital. (i) Stockpiles of construction and maintenance materials on-site with a value in excess of $2000 have been taken into account at cost. (ii) Inventories of saleable items and consumable stores have been valued at the lower of cost or net realisable value. (R) RESOURCES PROVIDED AND RECEIVED FREE OF CHARGE Contributions of resources and resources provided free of charge are recognised at their fair value. Contributions in the form of services are only recognised when a fair value can be reliably determined and the services would have been purchased if not donated. [ 79] NOTES TO THE FINANCIAL STATEMENTS

NOTE 2. REVENUE FROM

ORDINARY ACTIVITIES NOTE 2 FOR THE YEAR ENDED 30 JUNE 2003

2003 2002 $’000 $’000

OPERATING REVENUE

REVENUE FROM GOVERNMENT APPROPRIATIONS Revenue for the provisions of outputs (i) 654,932 721,141 Funding from Better Roads Trust Fund (ii) 152,300 177,400 807,232 898,541

REVENUE FROM OTHER PARTIES OPERATING FEES AND OTHER FUNDING Commission for collecting Transport Accident Commission premiums 18,757 17,215 Natural disaster relief 368 1,992 Marine Safety Victoria 2,559 1,303 Other recoveries 4,025 4,492 25,709 25,002

REGULATORY, LICENCE AND OTHER REVENUE (iii) Regulatory, licence and other fees 63,477 57,669 External works 33,651 27,725 Rental revenue 11,058 10,684 Interest 852 419 Fines and penalties 1,916 1,957 Assets received free of charge (iv) - 67,059 Property register adjustment (v) 1,250 11,089 Other revenue (vi) 5,052 - 117,256 176,602

PROCEEDS FROM SALE OF OTHER ASSETS 16,542 3,683 16,542 3,683 Total revenue 966,739 1,103,828 [ 80]

NOTE 2. REVENUE FROM ORDINARY ACTIVITIES

CONTINUED NOTE 2 FOR THE YEAR ENDED 30 JUNE 2003

(i) Revenue from Government for the provision of (iii) These funds are distributed to complement other outputs comprise of: sources of funds. Their application to VicRoads >> $148.3 million ($259.0 million in 2001-02) from the outputs is approved as part of the Government’s Commonwealth Government as tied grants under the approval of VicRoads programs as required under Australian Land Transport Development (ALTD) the Transport Act 1983. Program; and (iv) The Corporation received assets free of charge from >> $506.7 million ($462.1 million in 2001-02) being the municipal councils in 2001–02 with a total value of State Government contribution towards the provision $67.06 million, comprising of road pavement, of outputs. earthworks, bridges and traffic signals. (ii) In 2002–03 the Corporation's operating revenue also (v) As a result of the continuing verification of the accuracy included $152.3 million ($177.4 million in 2001–02) of the register to the electronic map base a number of funding from the Better Roads Trust Fund to finance adjustments were made to the Property Asset Register. expenditure on Better Roads Victoria road construction These adjustments related to: and maintenance projects. This program commenced in >> Some properties which were purchased or transferred 1993–94 and is funded by the petroleum products to the Corporation in previous years but not recorded in franchise fee for motor spirit and diesel fuel equivalent the register to three cents per litre. >> Other properties which were sold in previous years but not removed from the register >> Duplicate properties that were inadvertently included in the register.

2003 2002 $’000 $’000

Properties added to the register 1,579 2,575 Less: Properties removed from the register (329) (3,684) Infrastructure adjustment - 12,198 Total 1,250 11,089

(vi) The Corporation recognised office fit-out which were assembled previously and valued for the first time during 2002–03, with a total value of $5.05 million (nil in 2001–02). [ 81] NOTES TO THE FINANCIAL STATEMENTS

NOTE 3. RESULT FOR THE REPORTING

PERIOD NOTE 3 FOR THE YEAR ENDED 30 JUNE 2003

(A) EXPENSES 2003 2002 $’000 $’000

EMPLOYEE BENEFITS Salaries and related expenditure 174,260 167,316 Increase/(decrease) in provisions for employee benefits 81,453 (2,298) 255,713 165,018

DEPRECIATION AND AMORTISATION Buildings in service 292 262 Leasehold improvements 176 202 Fixed assets 8,058 4,458 Buildings situated on properties acquired for roadworks 965 769 Road pavements 185,613 173,884 Bridges 39,435 36,170 Traffic signal control system 10,979 9,819 Sound barriers 1,190 1,106 246,708 226,670 MUNICIPAL CLAIMS AND SCHOOL CROSSINGS 115,649 109,933 ASSETS GIVEN FREE OF CHARGE (i) - 101 CAPITAL ASSET CHARGE 47,400 47,400

SUPPLIES AND SERVICES Management and operating expenditure 63,376 60,518 Audit fees 282 289 Bad debts 225 177 Planning and Environment and properties acquired for roadworks 5,380 27,202 Contract payments 218,602 225,194 Plant hire 19,931 20,527 Service relocations 2,702 9,585 Contributions 673 561 311,171 344,053 PROPERTIES INCORPORATED INTO ROADWORKS (ii) 13,068 39,322 BOOK VALUE OF ASSETS SOLD 10,880 2,454

OTHER EXPENSES FROM ORDINARY ACTIVITIES Non-current assets written-off - 2 Assets written-off (iii) - 81,081 - 81,083 Expenses from ordinary activities 1,000,589 1,016,034 [ 82 ] okvleo sessl 080 2,454 10,880 To Book value ofassets sold Proceeds from sale To Book value of land sold Proceeds from sale CONTINUED PERIOD THE REPORTING RESULT FOR NOTE 3. re st disposal offixed assets, federal, BetterRoadandother Included inthenetsurplusfor theyear isthe profit on Consolidated Fund. The proceeds from thesedisposalsare paidtothe on disposalofsurplusstate operational properties. Included inthenetsurplusfor theyear isthe profit NETGAINSONDISPOSAL (B) TheCorporation wrote-off infrastructure assets in (iii) Properties are expensed uponthecommencement of (ii) TheCorporation provided assets free ofcharge in (i) ate landsales. Theproceeds from thesedisposalsare tal profit ondisposal tal profit ondisposal tained bytheCorporation. of bridges,traffic signals,roads andearthworks. 2001–02 withatotalvalue of$81.08million,comprising ($39.32 millionfor 2001–02)wasexpensed. c of road pavements, bridgesandearthworks. 2001–02 withatotalvalue of$0.101million,comprising onstruction works. During2002–03,$13.07million

NOTE 3 FOR THE YEAR ENDED 30 JUNE 2003 16,542 3,683 5,662 1,229 ’0 $’000 $’000 $’000 $’000 032002 2003 2002 2003 409 4,752 501 5,342 92 590 [ 83] NOTES TO THE FINANCIAL STATEMENTS NOTE 4. CASH ASSETS NOTE 5.

RECEIVABLES NOTES 4 AND 5 FOR THE YEAR ENDED 30 JUNE 2003

NOTE 4. CASH ASSETS

2003 2002 $’000 $’000

Cash at bank 30,612 70,412 Cash on hand 91 84 30,703 70,496

The above figures are reconciled to cash at the end of the financial year as shown in the statement of cash flows as follows:

2003 2002 $’000 $’000

Balances per statement of cash flows 30,703 70,496

NOTE 5. RECEIVABLES

2003 2002 $’000 $’000

Debtors 37,214 37,315 Less: Provision for doubtful debts 355 213 36,859 37,102 [ 84 ] * Includeswaterrights tcpl aeil tcs 1 933 815 Non-current 1,992 1,912 Total Land heldfor resale* or netrealisable value Saleable itemsandconsumable stores atlower ofcost Stockpile materialsatcost PROPERTY LOANS PROPERTY NOTE 7. INVENTORIES NOTE 6. improvements. of contracts relating tothesale oflandandassociated Represents outstanding principaldueundertheterms NOTE 7.PROPERTY LOANS in thisnote. Minister for Transport have beendisclosed separately Properties thathave beenapproved tobesoldbythe NOTE 6.INVENTORIES

NOTES 6 AND 7 FOR THE YEAR ENDED 30 JUNE 2003 4,718 3,872 2,727 2,925 1,991 947 ’0 $’000 $’000 ’0 $’000 $’000 032002 2003 032002 2003 140 [ 85] NOTES TO THE FINANCIAL STATEMENTS

NOTE 8. LAND, BUILDINGS AND LEASEHOLD

IMPROVEMENTS NOTE 8 FOR THE YEAR ENDED 30 JUNE 2003

2003 2002 $’000 $’000

LAND At indexed valuation 19,435 At valuation 44,053 44,053 19,435

BUILDINGS At indexed valuation 11,387 At valuation 9,798 9,798 11,387

LEASEHOLD IMPROVEMENTS At replacement cost 7,059 At valuation 12,195 Less: Accumulated depreciation 176 12,195 6,883 Total land, buildings and leasehold improvements 66,046 37,705

This item refers to those assets which are in service (e.g. offices and laboratories, regional residential properties, storage sites, depots and patrol garages and includes freehold buildings, buildings on Crown Land and buildings on leased land). At 30 June 2003, the Valuer-General carried out a full fair value valuation of all land and buildings in service, as well as leasehold improvements. Fair value has been determined with reference to relevant market prices. [ 86 ] adhl o eae6 --68 (559) 150 - 66,046 - (468) 29,150 - 12,195 - 5,488 (28) (176) 37,705 - 9,798 (1,269) (292) 68 (531) 6,883 44,053 150 24,931 - 11,387 Carrying amountatendofyear 19,435 Depreciation/amortisation expense (Note3) Incorporations Land heldfor resale Revaluation (Note15(a)) Register Adjustments Disposals Acquisitions Carrying amountatstart ofyear 2003 CONTINUED IMPROVEMENTS AND LEASEHOLD LAND, BUILDINGS NOTE 8. and endofthecurrent financialyear issetoutbelow. land, buildingsandleasehold improvements atthebeginning A reconciliation ofthecarryingamountseachclass of RECONCILIATION

NOTE 8 FOR THE YEAR ENDED 30 JUNE 2003 ADBIDNSIPOEET TOTAL IMPROVEMENTS BUILDINGS LAND ’0 ’0 ’0 $’000 $’000 $’000 $’000 ------LEASEHOLD [ 87] NOTES TO THE FINANCIAL STATEMENTS

NOTE 9. PROPERTIES ACQUIRED FOR

ROADWORKS NOTE 9 FOR THE YEAR ENDED 30 JUNE 2003

2003 2002 $’000 $’000

LAND At indexed valuation 622,075 At valuation 685,857 685,857 622,075

BUILDINGS At indexed valuation 38,046 At valuation 30,113 30,113 38,046 Total land and buildings 715,970 660,121

At 30 June 2003, the Corporation owned properties which Where possible, these properties are rented or leased until are required for future roadworks, situated in a planning required for roadworks or sold after being deemed surplus scheme for future roadworks, surplus to requirements and to requirements. awaiting final survey after roadworks, or land-locked At 30 June 2003, the Valuer-General carried out a full awaiting plans of consolidation and restoration of access fair value valuation of all properties acquired for roadworks. before being sold. Fair value has been determined with reference to relevant market prices. Refer to Note 1 (i) (ii).

RECONCILIATION A reconciliation of the carrying amounts of each class of land and buildings at the beginning and end of the current financial year is set out below. LAND BUILDINGS TOTAL $’000 $’000 $’000

2003 Carrying amount at start of year 622,075 38,046 660,121 Acquisitions 29,748 5,083 34,831 Disposals (9,001) (1,121) (10,122) Register adjustments 1,040 60 1,100 Revaluation (Note 15 (a)) 55,325 (10,140) 45,185 Land held for resale (1,033) (79) (1,112) Incorporations (12,297) (771) (13,068) Depreciation/amortisation expense (Note 3) - (965) (965) Carrying amount at end of year 685,857 30,113 715,970 [ 88 ] eauto Nt 5() 7,686 27,380 19,694 Carrying amountatendofyear Revaluation (Note15(a)) Carrying amountatstart ofyear 2003 To At valuation At indexed valuation ASSETS INCOMMERCIALUSE USE IN COMMERCIAL ASSETS NOTE 10. financial year is setoutbelow. c A reconciliation ofthecarryingamountsassets in RECONCILIATION market prices. Fa full fair value valuation ofallassets incommercial use. At 30June2003,theValuer-General carriedouta occupied bycommercial service centres. Assets incommercial usecomprise property currently ommercial useatthebeginningandendofcurrent a sesi omrilue2,8 19,694 27,380 tal assets incommercial use ir value has beendeterminedwithreference torelevant

NOTE 10 FOR THE YEAR ENDED 30 JUNE 2003 COMMERCIAL ASSETS IN 27,380 ’0 $’000 $’000 $’000 032002 2003 USE 19,694 [ 89] NOTES TO THE FINANCIAL STATEMENTS

NOTE 11.

FIXED ASSETS NOTE 11 FOR THE YEAR ENDED 30 JUNE 2003

2003 2002 $’000 $’000

COMPUTERS AND OTHER TECHNICAL EQUIPMENT At cost 56,511 53,376 Less: Accumulated depreciation (20,587) (17,394) 35,924 35,982

OFFICE FIT-OUT At cost (i) 13,554 - Less: Accumulated depreciation (8,502) - 5,052 - Total fixed assets 40,976 35,982

(i) Office fit-out represents non-structural office furnishings and fittings that can be removed without causing irreparable damage to buildings. Office fit-out was capitalised for the first time in 2002–03.

RECONCILIATION A reconciliation of the carrying amounts of fixed assets at the beginning and end of the current financial year is set out below. FIXED ASSETS $’000

2003 Carrying amount at start of year 35,982 Acquisitions 15,032 Disposals (1,980) Depreciation/amortisation expense (Note 3) (8,058) Carrying amount at end of year 40,976 [ 90]

NOTE 12. INFRASTRUCTURE

ASSETS NOTE 12 FOR THE YEAR ENDED 30 JUNE 2003

2003 2002 $’000 $’000 ROAD PAVEMENT At replacement cost (indexed) 10,936,720 At replacement cost (valuation) 12,940,865 At cost - 200,046 Less: Accumulated depreciation (4,559,259) (3,560,074) 8,381,606 7,576,692 EARTHWORKS At replacement cost (indexed) 4,535,365 At replacement cost (valuation) 4,236,835 At cost - 97,576 4,236,835 4,632,941 SOUND BARRIERS At replacement cost (indexed) 97,695 At replacement cost (valuation) 130,086 At cost - 9,403 Less: Accumulated depreciation (11,926) (9,243) 118,160 97,855 BRIDGES (INC. WEST GATE BRIDGE) At replacement cost (indexed) 3,442,327 At replacement cost (valuation) 3,912,411 At cost - 106,875 Less: Accumulated depreciation (1,146,399) (1,032,285) 2,766,012 2,516,917 TRAFFIC SIGNAL CONTROL SYSTEMS At replacement cost (indexed) 260,392 At replacement cost (valuation) 330,037 At cost - 3,730 Less: Accumulated depreciation (248,037) (189,748) 82,000 74,374 WORK IN PROGRESS At cost 364,953 449,046 364,953 449,046 Total infrastructure assets 15,949,566 15,347,825

These infrastructure assets were subject to a complete the Corporation, revalued these assets to ensure the revaluation at 30 June 2003. Independent expert valuation is based on a current replacement cost and engineers, in consultation with suitably qualified staff of is consistent with the fair value of these assets. [ 91] NOTES TO THE FINANCIAL STATEMENTS

NOTE 12. INFRASTRUCTURE ASSETS

CONTINUED NOTE 12 FOR THE YEAR ENDED 30 JUNE 2003

RECONCILIATION A reconciliation of the carrying amounts of each class of infrastructure assets at the beginning and end of the current financial year is set out below.

TRAFFIC ROAD EARTH- SOUND SIGNAL WORK IN PAVEMENT WORKS BARRIERS BRIDGES CONTROL PROGRESS TOTAL $’000 $’000 $’000 $’000 $’000 $’000 $’000 2003 Carrying amount at start of year 7,576,692 4,632,941 97,855 2,516,917 74,374 449,046 15,347,825 Acquisitions 201,755 101,643 18,920 58,399 5,713 - 386,430 Disposals ------Net transfers free of charge ------Register adjustments ------Depreciation/ amortisation expense (Note 3) (185,613) - (1,190) (39,435) (10,979) - (237,217) Construction expenditure -----302,337 302,337 Expenditure capitalised -infrastructure -----(386,430) (386,430) Revaluation/indexation 788,772 (497,749) 2,575 230,131 12,892 - 536,621

Carrying amount at end of year 8,381,606 4,236,835 118,160 2,766,012 82,000 364,953 15,949,566 [ 92 ] esttlaon ad21442 1,894,536 2,154,462 1,900,441 8,966 2,158,700 14,871 14,871 Balance at30June Less totalamountpaid Plus totalrevenue 19,109 collections Balance atcommencement offinancialyear Tot Planning andEnvironmentalAct1987 Liabilities property (ii) Government ofVictoriaandAgencies(i) Prepaid revenue Creditors andaccruals PA NOTE 13. i TheCorporation collects revenue suchasstamp (i) al payables Y Government Agencies. of theGovernment ofVictoriaandother and theTransport Accident Charge, onbehalf duty, vehicle registration fees, driver licence fees ABLES

iblte ii ,6 12,495 4,465 liabilities (iii) NOTE 13 FOR THE YEAR ENDED 30 JUNE 2003 2,173,571 1,909,407 139,665 170,258 19,109 14,871 60,274 68,400 50,616 68,698 5,201 5,794 ’0 $’000 $’000 ’0 $’000 $’000 032002 2003 032002 2003 [ 93] NOTES TO THE FINANCIAL STATEMENTS

NOTE 13. PAYABLES

CONTINUED NOTE 13 FOR THE YEAR ENDED 30 JUNE 2003

Revenue collections on behalf of Government and other Agencies comprise:

2003 2002 $’000 $’000

REVENUE COLLECTIONS Transport Accident Charge and related stamp duty 1,064,296 1,004,314 Stamp duty 490,648 319,293 Registration fees 491,247 468,970 Driver licences 56,067 57,745 Federal interstate registrations 19,623 16,720 Other licence fees, permits, etc. 28,959 22,555 Motorboat registrations 6,518 6,343 State operational land sales* 1,342 4,501 Total revenue collections 2,158,700 1,900,441

*Only this item has been brought to account within the body of the financial statements of the Corporation. State operational land sales are initially reported in the Corporation’s ledger as revenue. Expenses incurred in making the sale are expensed and the net proceeds are then made payable to the Government. An equivalent amount to the book value of the asset is written-out of Contributed Capital.

(ii) This amount represents the value of properties acquired for road purposes (including acquisition costs) where a Notice of Acquisition has been formally served on the property owner or the Corporation has taken formal possession although final settlement had not been achieved at 30 June. Amounts have been based on market valuation data prepared by external and internal valuers. (iii) This amount represents compensation payable in respect of financial loss by owners of properties affected by planning reservations. [ 94]

NOTE 14.

PROVISIONS NOTE 14 FOR THE YEAR ENDED 30 JUNE 2003

2003 2002 $’000 $’000

CURRENT

EMPLOYEE BENEFITS Superannuation (i) 35,872 32,542 Annual leave 11,343 10,365 Long service leave (ii) 4,764 3,736 Time in lieu 96 123 Performance benefit (iii) 2,624 2,446 Provisions and retentions (iv) 6,897 6,100 61,596 55,312

NON-CURRENT

EMPLOYEE BENEFITS Superannuation (i) 436,089 395,606 Long service leave (ii) 42,872 33,626 Provisions and retentions (iv) 2,818 1,372 481,779 430,604

AGGREGATE CARRYING AMOUNT OF PROVISIONS Current 61,596 55,312 Non-current 481,779 430,604 543,375 485,916

Employee benefits 533,660 478,444 Provisions and retentions 9,715 7,472 543,375 485,916

(i) The above provision for superannuation covers three schemes as follows:

2003 2002 $’000 $’000

State Superannuation Scheme 446,822 405,343 Transport Superannuation Scheme 8,843 8,022 State Employees Retirement Benefits (SERB) Scheme 16,296 14,783 Total 471,961 428,148 [ 95] NOTES TO THE FINANCIAL STATEMENTS

NOTE 14. PROVISIONS

CONTINUED NOTE 14 FOR THE YEAR ENDED 30 JUNE 2003

(ii) Long service leave is measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. The following assumptions were adopted in measuring present value:

2003 2002

Weighted average rates of increase in annual employee benefits to settlement of the liability 4.75% 6.90% Weighted average discount rates 4.73% 5.66% Weighted average terms to settlement of the liabilities (years) 12 years 12 years

Percentage rates for weighted average rates have been supplied by the Department of Treasury and Finance.

(iii) Performance benefit includes annual bonuses for executive officers and other annual performance incentives. (iv) These items represent contractors’ and other minor claims, retentions and security deposits. [ 96 ] eepsfo oenet4,0 108,547 48,300 (4,751) 14,000,280 (409) 14,104,076 2,131,922 1,206,182 2,750,564 2,131,922 Balance 30June Book value ofStatelandsales returned toGovernment Receipts from Government Balance atcommencement offinancialyear 925,740 618,642 Balance 30June Increment onrevaluation offreehold landandbuildingsinfrastructure Balance atcommencement offinancialyear ASSET REVALUATION RESERVE MOVEMENTS Asset revaluation reserve IN EQUITY MOVEMENTS EQUITY AND NOTE 15. (B) CONTRIBUTEDCAPITAL (A) RESERVES

NOTE 15 FOR THE YEAR ENDED 30 JUNE 2003 14,151,967 14,104,076 2,750,564 2,131,922 ’0 $’000 $’000 ’0 $’000 $’000 032002 2003 032002 2003 [ 97] NOTES TO THE FINANCIAL STATEMENTS NOTE 15. EQUITY AND MOVEMENTS IN EQUITY

CONTINUED NOTE 15 FOR THE YEAR ENDED 30 JUNE 2003

(C) ACCUMULATED DEFICIT

2003 2002 $’000 $’000

Accumulated deficit at the beginning of the financial year (677,531) (765,325) Net result (33,850) 87,794 Adjustments resulting from change in AASB 1028 (Note 1 (n)) (207) - Accumulated deficit at the end of the financial year (711,588) (677,531)

(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 (i).

2003 2002 $’000 $’000

Total equity at the beginning of the financial year 15,558,467 14,441,137 Total changes in equity recognised in the statement of financial performance 584,585 1,013,534 Contributions of equity (Note 15 (b)) 47,891 103,796 Total equity at the end of the financial year 16,190,943 15,558,467 [ 98]

NOTE 16. FINANCIAL

INSTRUMENTS NOTE 16 FOR THE YEAR ENDED 30 JUNE 2003

(A) CREDIT RISK EXPOSURES The credit risk on financial assets of the Corporation, 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

FLOATING NON-INTEREST INTEREST RATE BEARING TOTAL NOTES $'000 $'000 $'000

2003

FINANCIAL ASSETS Cash and deposits 4 30,612 91 30,703 Receivables 5 - 36,859 36,859 Prepayments - 1,611 1,611 Advances - 14 14 30,612 38,575 69,187 Weighted average interest rate 4.59% FINANCIAL LIABILITIES Trade and other creditors 13 - 134,464 134,464 Prepaid revenue 13 - 5,201 5,201 - 139,665 139,665 Net financial assets (liabilities) 30,612 (101,090) (70,478) [ 99] NOTES TO THE FINANCIAL STATEMENTS

NOTE 16. FINANCIAL INSTRUMENTS

CONTINUED NOTE 16 FOR THE YEAR ENDED 30 JUNE 2003

FLOATING NON-INTEREST INTEREST RATE BEARING TOTAL NOTES $'000 $'000 $'000

2002

FINANCIAL ASSETS Cash and deposits 4 70,412 84 70,496 Receivables 5 - 37,102 37,102 Prepayments - 1,683 1,683 Advances - 21 21 70,412 38,890 109,302 Weighted average interest rate 4.53% FINANCIAL LIABILITIES Trade and other creditors 13 - 164,464 164,464 Prepaid revenue 13 - 5,794 5,794 - 170,258 170,258 Net financial assets (liabilities) 70,412 (131,368) (60,956)

(C) RECONCILIATION OF NET FINANCIAL ASSETS (LIABILITIES) TO NET ASSETS

2003 2002 NOTE $’000 $’000

Net financial assets (liabilities) (70,478) (60,956)

NON FINANCIAL ASSETS Inventories 6 4,718 3,872 Property loans 7 140 140 Land and buildings in service 8 66,046 37,705 Properties acquired for roadworks 9 715,970 660,121 Assets in commercial use 10 27,380 19,694 Fixed assets 11 40,976 35,982 Infrastructure assets 12 15,949,566 15,347,825 Total non financial assets 16,804,796 16,105,339

NON FINANCIAL LIABILITIES Provisions 14 (543,375) (485,916) Total non financial liabilities (543,375) (485,916) Net assets 16,190,943 15,558,467 [ 100]

NOTE 16. FINANCIAL INSTRUMENTS

CONTINUED NOTE 16 FOR THE YEAR ENDED 30 JUNE 2003

(D) NET FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (i) ON-BALANCE SHEET The net fair value of cash and cash equivalents and non-interest bearing monetary financial assets and financial liabilities of the Corporation approximates their carrying amounts. (ii) OFF-BALANCE SHEET The Corporation has potential financial liabilities, which may arise from certain contingencies disclosed in Note 20. As explained in those notes, no material losses are anticipated in respect of any of those contingencies and as a result the net fair value disclosed below is the estimate of amounts which would be payable by the Corporation as consideration for the assumption of those contingencies by another party. The carrying amounts and net fair values of financial assets and liabilities at reporting date are:

2003 2002 CARRYING NET FAIR CARRYING NET FAIR AMOUNT VALUE AMOUNT VALUE $’000 $’000 $’000 $’000

FINANCIAL ASSETS Cash assets 30,703 30,703 70,496 70,496 Receivables 36,859 36,859 37,102 37,102 Prepaid expenditure 1,611 1,611 1,683 1,683 Advances 14 14 21 21 Non-traded financial assets 69,187 69,187 109,302 109,302

FINANCIAL LIABILITIES Trade creditors 50,616 50,616 68,698 68,698 Other creditors 83,848 83,848 95,766 95,766 Prepayments 5,201 5,201 5,794 5,794 Non-traded financial liabilities 139,665 139,665 170,258 170,258

Net fair value is exclusive of costs which would be incurred on realisation of an asset, and inclusive of costs which would be incurred on settlement of a liability. [ 101] NOTES TO THE FINANCIAL STATEMENTS

NOTE 17. MINISTERS AND ACCOUNTABLE

OFFICERS NOTE 17 FOR THE YEAR ENDED 30 JUNE 2003

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 Corporation are as follows:

Minister for Transport The Hon P Batchelor 1 July 2002 to 30 June 2003 Chief Executive Officer David Anderson (i) 1 July 2002 to 5 November 2003 10 December 2002 to 30 June 2003 Chief Executive Officer Peter Balfe (ii) 6 November 2002 to 9 December 2002

REMUNERATION OTHER TRANSACTIONS Remuneration received or receivable by the Accountable Other related transactions and loans requiring disclosure Officer in connection with the management of the under the Directions of the Minister for Finance have been Corporation during the reporting period was in the range: considered and there are no matters to report. >> (i) $230,000–$239,999 ($220,000–$229,999 in 2002) >> (ii) $210,000–$219,999 ($210,000–$219,999 in 2002) Amounts relating to Ministers are reported in the financial statements of the Department of Premier and Cabinet. [ 102 ] 2000-$6,9 ------2 - 1 1 - 1 1 - 9 1 2 6 2 - 4 1 3 - 1 3 1 - 7 1 1 3 5 - 1 13 3 3 To 4 3 2 To 4 $270,000 -$279,999 $260,000 -$269,999 13 $250,000 -$259,999 $240,000 -$249,999 3 $230,000 -$239,999 $220,000 -$229,999 $210,000 -$219,999 $200,000 -$209,999 TOTAL BASE $190,000 -$199,999 $180,000 -$189,999 $170,000 -$179,999 $160,000 -$169,999 $150,000 -$159,999 $140,000 -$149,999 $130,000 -$139,999 13111816 $120,000 101615 $110,000 $100,000 -$109,999 REMUNERATION - - $129,999 $119,999 EXECUTIVES REMUNERATION OF NOTE 18. i)Represents remuneration for reporting periodof (ii) Thetotalnumberofexecutive officer positionsat (i) payments andretirement benefits. bonus payments,long service leave payments, redundancy third andfourth columns. Baseremuneration isexclusive of The baseremuneration ofexecutive officers isshown inthe c during thereporting periodare shown inthefirst two and Accountable Officers, andtheirtotalremuneration The numbers ofexecutive officers, otherthantheMinister olumns inthetable below intheirrelevant income bands. a ubr i 5651 51 tal numbers (i) a mut(i 77638$,0,9 71941$6,374,978 $7,139,411 $6,901,991 $7,746,318 tal amount(ii) ex 30 June2003was64(64at June2002). ecutive officers includedabove.

NOTE 18 FOR THE YEAR ENDED 30 JUNE 2003 0320 032002 2003 2002 2003 ------we ex Several factors have affected totalremuneration payable to the numberofofficers includedinthetable below. l r past two years. Thishashadanimpactonthetotal A numberofexecutive officers retired orresigned inthe individual employment contracts. y number ofexecutives received bonuspaymentsduringthe ong service leave andbonuspayments.Thisalsoimpacted emuneration figures duetotheinclusionofannualleave, ear. Thesebonuspaymentsdependonthetermsof ecutives over theyear. Anumberofemployment contracts re

c ompleted duringtheyear andrenegotiated anda [ 103]

NOTE 19. REMUNERATION OF AUDITORS NOTES TO THE FINANCIAL STATEMENTS NOTE 20. CONTINGENT LIABILITIES AND CONTINGENT

ASSETS NOTES 19 AND 20 FOR THE YEAR ENDED 30 JUNE 2003

NOTE 19. REMUNERATION OF AUDITORS Audit fees paid or payable to the Victorian Auditor-General’s Office for audit of the Corporation’s financial report.

2003 2002 $$

Paid as at 30 June 100,500 75,000 Payable as at 30 June 189,400 180,200

NOTE 20. CONTINGENT LIABILITIES AND CONTINGENT ASSETS (A) CONTINGENT LIABILITIES The Corporation has examined its records to provide an estimate of possible material exposures resulting from various legal actions and other contingencies. The estimate of such contingent liabilities as at 30 June 2003 was $43.0 million ($149.5 million for 2001–02). This consisted of:

2003 2002 $’000 $’000

Contract claims 35,280 140,222 Legal disputes 7,752 9,271 43,032 149,493

Contract claims relate to claims against VicRoads by (B) CONTINGENT ASSETS contractors for variations to contracts. In a large number of The Corporation has examined its records to provide cases, the Corporation is contesting the associated claims. an estimate of possible material assets resulting from Legal disputes relate to claims brought against VicRoads by legal actions. The estimate of such contingent assets as persons and entities who assert that they are entitled to be at 30 June 2003 was $50,000 (nil for 2001–02). This amount compensated for a loss. Again, in a large number of cases, relates to legal actions for damage caused to VicRoads the Corporation is contesting the associated claims. assets, and based on legal advice, the Corporation is confident that these actions will be settled in its favour. [ 104 ] ae hnoeya u o ae hnfv er 253 24,176 106,396 22,533 101,799 Commitments not recognised inthe financialstatements 35,273 Later thanfive years Later thanoneyear butnotlaterthan five years - Within oneyear 36,389 - 30,133 14,603 To Later thanfive years Later thanoneyear butnotlaterthanfive years Within oneyear OTHER COMMITMENTS Later thanfive years Later thanoneyear butnotlaterthanfive years Within oneyear LAND ACQUISITION Later thanfive years Later thanoneyear butnotlaterthanfive years Within oneyear ROAD/BRIDGE ANDANCILLARY WORKS EXPENDITURE COMMITMENTS FOR NOTE 21. re services contracted for atthereporting date,butnot Commitments for theacquisitionofplant,equipmentand CAPITAL/CONTRACT COMMITMENTS (A) f 30 June2003totalled $26.85 million($20.37 Lease paymentsfor thefinancialyear ended OPERATING LEASES (B) or 2001–02). a aia/otatcmimns2244 347,042 212,434 tal capital/contract commitments c ognised asliabilities,payable:

NOTE 21 FOR THE YEAR ENDED 30 JUNE 2003 non-cancellable operating leases are payable asfollows: Commitments for minimumlease paymentsin relation to non-current assets. all therisksandbenefitsincidenttoownership of Corporation effectively doesnotretain substantially These leases are classified asoperating leases asthe 105,796 252,104 94,195 85,334 12,443 9,604 67,574 68,944 11,692 13,276 57,806 50,061 12,443 9,604 91,193 221,971 ’0 $’000 $’000 ’0 $’000 $’000 032002 2003 032002 2003 ------[ 105] NOTES TO THE FINANCIAL STATEMENTS NOTE 22. EMPLOYEE BENEFITS NOTE 23.

EX-GRATIA PAYMENTS NOTES 22 AND 23 FOR THE YEAR ENDED 30 JUNE 2003

NOTE 22. EMPLOYEE BENEFITS GOVERNMENT EMPLOYEES' SUPERANNUATION FUND Superannuation contributions for the reporting period are Contributions paid were in accordance with the rates included as part of salaries and associated costs in the set by the relevant funds. statement of financial performance of the Corporation. The names of the major employee superannuation funds The Corporation’s employees contribute to the following and contributions made by the Corporation are as follows: superannuation schemes: >> The State Superannuation Scheme (Revised and New), the State Employees Retirement Benefits (SERB) Scheme, the Transport Superannuation Scheme and VicSuper.

CONTRIBUTION CONTRIBUTION CONTRIBUTION CONTRIBUTION OUTSTANDING OUTSTANDING FOR YEAR FOR YEAR AT YEAR END AT YEAR END 2003 2002 2003 2002 $’000 $’000 $’000 $’000

State Revised and New Scheme–pensions 22,414 23,585 1,850 1,800 State Revised and New Scheme–current employees 6,777 7,060 - - Transport Superannuation Scheme 2,063 2,421 190 190 State Employees Retirement Benefits (SERB) Scheme 720 839 60 60 VicSuper 2,351 1,775 220 174 Total 34,325 35,680 2,320 2,224

NOTE 23. EX-GRATIA PAYMENTS The Corporation made the following ex-gratia payments:

2003 2002 $’000 $’000

Ex-gratia payments 5,550 -

These ex-gratia payments were made to contractors [ 106 ] nrae(erae npybe 3,5)(25,272) 2,603 (2,298) (13,233) - (39,656) (846) 81,453 243 (5,052) Increase (decrease) inemployee benefits Increase (decrease) inpayables Decrease (increase) ininventories Decrease (increase) inreceivables Office fit-outrecognised for thefirst time se eitrajsmn 120 (11,089) (1,250) 48,602 13,068 Net transfers free ofcharge Asset register adjustment Properties incorporated intoroadworks e ahifo rmoeaigatvte 5,8 327,827 258,985 226,670 87,794 246,708 (33,850) Net cashinflow from operating activities P Depreciation andamortisation Net results for thereporting period e ano aeo o-urn ses(,6)(1,229) (5,662) Assets written-off Fixed assets written-off Net gainonsale ofnon-current assets Net agencycollections ACTIVITIES FROM OPERATING TO NETCASHINFLOW PERIOD REPORTING NET RESULT FORTHE RECONCILIATION OF NOTE 24. INFLOW FROMOPERATING ACTIVITIES FOR THEREPORTING PERIODTONETCASH RECONCILIATION OFNETRESULT NOTE 24. yett osldtdFn 49 (4,751) (409) ayment toConsolidatedFund

NOTE 24 FOR THE YEAR ENDED 30 JUNE 2003 4,238 5,905 ’0 $’000 $’000 032002 2003 - - -2 (66,958) 81,081 [ 107] ACCOUNTABLE OFFICER’S DECLARATION ACCOUNTABLE

ACCOUNTABLE OFFICER’S

DECLARATION FOR THE YEAR ENDED 30 JUNE 2003

We certify that the attached financial statements for the Roads Corporation have been prepared in accordance with Part 9 of the Directions of the Minister for Finance under the Financial Management Act 1994, applicable Australian Accounting Standards and other mandatory professional reporting requirements.

We further state that, in our opinion, the information set out in the statement of financial performance, statement of financial position, statement of cash flows and notes to and forming part of the financial statements, presents fairly the financial transactions during the year ended 30 June 2003 and financial position of the Corporation as at 30 June 2003.

We are not aware of any circumstance which would render any particulars included in the financial statements to be misleading or inaccurate.

DAVID ANDERSON DOUG THOMPSON CHIEF EXECUTIVE DIRECTOR FINANCE ROADS CORPORATION ROADS CORPORATION

Melbourne 26 September 2003 Melbourne 26 September 2003 [ 108 ] REPORT GENERAL’S AUDITOR- Financial ManagementAct1994 mandatory professional reporting requirements inAustralia, andthefinancialreporting requirements ofthe In myopinion,thefinancialreport presents fairly inaccordance withapplicable Accounting Standards andother AUDIT OPINION mandatory professional reporting requirements inAustralia, andthefinancialreporting requirements ofthe in allmaterialrespects, thefinancialreport ispresented fairly inaccordance withAccounting Standards andother policies andsignificantaccounting estimates. Theseprocedures have beenundertaken toform anopinionastowhether, basis, ofevidence supportingtheamountsandotherdisclosures inthefinancialreport, andtheevaluation ofaccounting whether thefinancialreport isfree ofmaterialmisstatement. Theauditprocedures includedanexamination, onatest The audithasbeenconducted inaccordance withAustralian AuditingStandards toprovide reasonable assurance asto Chief Executive asrequired bythe carried outinorder toexpress anopiniononittotheMembers oftheParliament ofVictoria,responsible Ministers andthe presentation ofthefinancialreport andtheinformation itcontains. Anindependentauditofthefinancialreport hasbeen st st The accompanying financialreport oftheRoadsCorporation for thefinancialyear ended30June2003,comprising a AUDIT SCOPE in theauditedfinancialreport presented onthiswebsite. c from thesestatements. Ifusers ofthisreport are concerned with theinherent risksarisingfrom electronic data the statements namedbelow. Anopinionisnotprovided onanyotherinformation whichmayhave beenhyperlinked toor w on theRoadsCorporation's website. TheChiefExecutive oftheRoadsCorporation isresponsible for theintegrityof This auditreport relates tothefinancialreport oftheRoadsCorporation for thefinancialyear ended30June2003included To Matters relating totheelectronic presentation oftheAuditedFinancialReport Management Act1994 performance andcashflows for theyear thenended. The auditopinionexpressed inthisreport hasbeenformed ontheabove basis. position, anditsfinancialperformance andcash flows. ommunications they are advisedtorefer tothehard copy oftheaudited financialreport toconfirm theinformation included ebsite. Ihave notbeenengagedtoreport ontheintegrityofRoadCorporation’s website. Theauditreport refers only to atements, hasbeenaudited.TheChiefExecutive oftheRoadsCorporation isresponsible for thepreparation and atement offinancialperformance, statement offinancialposition,statement ofcashflows andnotestothefinancial

the Members oftheParliament ofVictoria,theresponsible Ministers and theChiefExecutive oftheRoadsCorporation , soastopresent aview whichisconsistent withmyunderstanding oftheCorporation’s financial , thefinancialpositionofRoadsCorporation asat30June2003andits financial coe 03 Auditor-General 2 October2003

Audit Act1994. FOR THE YEAR ENDED 30 JUNE 2003 J.W. CAMERON MELBOURNE Financial [ 109] APPENDICES

APPENDICES FOR THE YEAR ENDED 30 JUNE 2003

COMPLIANCE INDEX VicRoads annual report is prepared in accordance with the Financial Management Act 1994 and the directions of the Minister for Finance. This index lists compliance with statutory disclosure and other requirements.

DISCLOSURE CLAUSE PAGE

REPORT OF OPERATIONS CHARTER AND PURPOSE Manner of establishment and relevant Minister 9.1.3 (i) (a) 4,5 Objectives, functions, powers and duties 9.1.3 (i) (b) 3 Services provided and people or sections of community served 9.1.3 (i) (c) 5

MANAGEMENT AND STRUCTURE Names of governing board members, Audit Committee and Chief Executive 9.1.3 (i) (d) (i) 56, 60, 58 Names of senior office holders and brief description of each office 9.1.3 (i) (d) (ii) 57 Chart showing organisational structure 9.1.3 (i) (d) (ii) 61

FINANCIAL AND OTHER INFORMATION Workforce data, and application of merit and equity principles 9.1.3 (i) (e) 48, 60 Application and operation of Freedom of Information Act 1982 9.1.3 (i) (f) 113 Summary of financial results and previous four-year comparatives 9.1.3 (ii) (a) 64 Summary of significant changes in financial position 9.1.3 (ii) (b) 64 Full details of each consultancy greater than $100,000 9.1.3 (ii) (f) 52 Number and total cost of consultancy engagements, each of which cost less than $100,000 9.1.3 (ii) (g) 52 Extent of compliance with Building Act 1993 9.1.3 (ii) (h) 120

OTHER Compliance with the Whistleblowers Protection Act 115 VicRoads Whistleblowers Protection Procedure 116

FINANCIAL STATEMENTS STATEMENT OF FINANCIAL OPERATIONS Operating revenue, by class 9.2.3 (ii) (a) 79 Depreciation, amortisation or diminution in value 9.2.3 (ii) (e) 81 Bad and doubtful debts 9.2.3 (ii) (f) 81 Losses arising from sale of non-current assets 9.2.3 (ii) (g) 82 Audit expense 9.2.3 (ii) (i) 81 [ 110]

APPENDICES FOR THE YEAR ENDED 30 JUNE 2003

STATEMENT OF FINANCIAL POSITION Cash at bank or in hand 9.2.3 (iii) (a) (i) 83 Inventories, by class 9.2.3 (iii) (a) (ii) 84 Receivables, including trade debtors, loans and other debtors 9.2.3 (iii) (a) (iii) 83 Other assets, including prepayments 9.2.3 (iii) (a) (iv) 69,84 Property, plant and equipment 9.2.3 (iii) (a) (vi) 85-91 Bank loans, bills payable, promissory notes, debentures and other loans 9.2.3 (iii) (b) (ii) 84 Trade and other creditors 9.2.3 (iii) (b) (iii) 92 Provisions, including employee entitlements 9.2.3 (iii) (b) (v) 94 Issued capital 9.2.3 (iii) (c) (ii) 96 Reserves, and transfers to and from reserves, shown separately 9.2.3 (iii) (d) 96

STATEMENT OF CASH FLOWS A statement of cash flows during the year 9.2.2 (i) (c) 70

NOTES TO THE FINANCIAL STATEMENTS Amounts written-off 9.2.2 (i) (d) 81 Contingent liabilities 9.2.3 (iv) (b) 103 Commitments for expenditure 9.2.3 (iv) (c) 104 Employee superannuation funds 9.2.3 (iv) (e) 105 Transactions with responsible persons and their related parties 9.4 101 [ 111] APPENDICES

APPENDICES FOR THE YEAR ENDED 30 JUNE 2003

LEGISLATION The Act provides authorised VicRoads inspectors and the ACTS police with the power to: The Road Safety (Responsible Driving) Act 2002 was passed >> Inspect and search vehicles and premises associated on 22 October 2002. It aims to encourage responsible with road transport driving by: >> Direct certain persons to provide documents and >> Redefining ‘excessive speeding’ as exceeding the items relating to heavy vehicle compliance speed limit by 25 km/h or more (previously 30 km/h >> Direct certain persons to provide them with or more). Excessive speeding incurs automatic driver reasonable assistance. licence suspension These new powers will support the investigation >> Increasing the minimum excessive speeding of offences that may have been committed by parties that suspension periods for speeds of 35 km/h or more have management or control over activities in the road over the limit transport chain. >> Allowing for ‘on the spot’ licence suspension for certain To ensure that these inspection and search powers are serious drink driving offences pending charges. On the exercised responsibly, a number of safeguards have been spot suspension may be imposed for repeat offences, introduced. These include: refusal to submit to a breath or blood test, and first >> Heavy vehicles and premises can only be searched if offences where the driver has a blood-alcohol there is a search warrant, if the vehicle may have been concentration (BAC) of 0.15 or more, or, in the case of involved in an accident, or if there is a reasonable belief probationary and learner drivers, a BAC of 0.07 or more that the premises or the vehicle are being used in >> Setting a demerit point limit of five demerit points in contravention of a road transport law or an approved any 12-month period for probationary and learner road transport compliance scheme drivers, partly offset by removal of automatic >> Limitations have been placed on the search and suspension for certain offences. The standard 12 inspection of premises that are unattended or used for demerit points in any three-year period will still apply predominantly residential purposes to these drivers >> Only police are entitled to use reasonable force during >> Enabling police to send warning notices to drivers who the search or inspection. have incurred demerit points when they are near the REGULATIONS number that will result in their licence or permit being The following new regulations were made during 2002–03: suspended. >> Road Safety (General) (Infringements) Regulations 2002 The Road Safety (Heavy Vehicle Safety) Act 2003 was passed on 11 June 2003. It implements the investigatory and Set a scale of penalties for using unregistered vehicles evidence gathering aspects of the National Road Transport that reflects the relevant unpaid registration fee and Commission’s ‘Exposure Draft’ of the Road Transport Transport Accident Commission charge. These Reform (Compliance and Enforcement) Bill 2003, and regulations were effective from 1 October 2002. addresses some defects in existing legislation relating >> Road Safety (Drivers) (Amendment) Regulations 2002 to heavy vehicle inspections generally. Exempt drivers of emergency service vehicles from the requirement to display P-plates. The regulations allow probationary drivers from other states or territories to display their interstate P-plates in Victoria. In addition, certain other miscellaneous fees were increased. These regulations were effective from 1 October 2002. [ 112]

APPENDICES FOR THE YEAR ENDED 30 JUNE 2003

>> Road Safety (General) (Speed Measuring Devices) >> Road Safety (Vehicles) (Registration Fees) Regulations 2002 Regulations 2003 Enable the new device PolTech SafeCam Mk 1 to Increase the base fee for the registration of standard be used as a speed camera, effective from motor vehicles from $140 to $157 as a budget measure. 24 September 2002. The new base fee will apply pro rata to other categories >> Road Safety (Vehicles) (Amendment) Regulations 2002 of vehicle according to the percentage of base fee set out in Schedule 4 to the Road Safety (Vehicles) Amend the Road Safety (Vehicles) Regulations 1999 to Regulations 1999, and are effective from take account of amendments to the Duties Act 2000, 1 July 2003. which altered the obligations of motor car dealers in regard to payment of motor vehicle duty. These >> Road Safety (Drivers) (Fees) Regulations 2003 regulations were effective from 30 October 2002. Increase certain general driver licence fees and fees for >> Road Safety (General) (Responsible Driving) searching and making extracts from VicRoads records, Regulations 2002 effective from 1 July 2003. Set out the particulars that must be included in an >> Chattel Securities (Fees) Regulations 2003 ‘on the spot’ licence suspension notice for drink driving Increase fees for registering security interests and under section 51 (1B) of the Road Safety Act, and obtaining certificates under the Chattel Securities Act amend the traffic infringements for speeding in 1997, and are effective from 1 July 2003. Schedule 4 to the Road Safety (General) Regulations >> Road Safety (Vehicles) (Transfer of Registration Fees) 1999. These regulations were effective from 15 Regulations 2003 December 2002. Increase vehicle transfer fees from 1 July 2003. >> Road Safety (Drivers) (Demerit Points) Regulations 2002 >> Road Safety (General) (Speed Measuring Devices) Increase the demerit points which apply to certain Regulations 2003 speeding offences and introduce demerit points for some Enable three new devices, namely the DCD ROBOT existing offences, notably driving while using a hand-held Digital Smart Camera, the Poltech SafeCam Red mobile phone, effective from 15 December 2002. Light/Speed Mk 1, and the REDFLEX red-speed system >> Road Safety (Road Rules) (Speeding Offences) to be used for detection and enforcement purposes for Regulations 2002 both speeding and red-light offences. These regulations Increase the maximum penalty that may be imposed by were made on 8 July 2003. a court for exceeding the speed limit to $2000 for drivers of large vehicles and $1000 for drivers of other vehicles, effective from 15 December 2002. >> Road Safety (Vehicles) (Fees) Regulations 2003 Increase fees for searching and making extracts from VicRoads records and certain other miscellaneous fees, effective from 10 February 2003. [ 113] APPENDICES

APPENDICES FOR THE YEAR ENDED 30 JUNE 2003

GUIDELINES AUDIT REPORT The Alcohol Interlock Guidelines were published in the In 2002–03, VicRoads internal auditors delivered a strategic, Victoria Government Gazette on 5 May 2003. They deal with risk-based program of audit projects that reviewed the the criteria that VicRoads will apply in considering whether adequacy of VicRoads systems, procedures and controls, to approve a type of alcohol interlock and in considering and advised on their effectiveness in supporting the delivery whether to approve a person or body as a supplier of of its services to the community. Internal audit activities alcohol interlocks. They also establish the procedures included the following: for installation and maintenance of alcohol interlocks. >> Audits of data integrity within VicRoads registration, COMPETITIVE NEUTRALITY licensing and other key computer databases VicRoads is required to comply with the pricing principles >> A review of business rules relating to the in the Victorian Government’s Competitive Neutrality Policy re-registration of written-off vehicles, and the 2000. The policy applies to significant business activities new registration of interstate vehicles by publicly owned entities. >> A review of VicRoads performance in the Bituminous surfacing undertaken by Sprayline is the only implementation of environmental management business activity within VicRoads that meets the policy’s guidelines for road construction projects definition of a significant business activity. However, the >> An audit of the integrity of road and bridge condition policy’s principles are also applied to business activities data contained in the inventory of VicRoads road assets undertaken by VicRoads Design, GeoPave, Land Information >> A review of the security of Information Technology in and Survey, Information Services, and Graphic and VicRoads Publication Services, due to their commercial nature and exposure in the marketplace. >> A review of the implementation of privacy principles. VicRoads has processes in place to achieve compliance with FREEDOM OF INFORMATION (FOI) the policy. They include a database in which compliance In 2002–03, VicRoads received 180 Freedom of Information with the pricing principles and formal sign off of compliance (FOI) requests. Decisions were made as follows: by individual businesses is documented as well as regular independent audits. In all of the above business activities, compliance with the Access granted in full 37 policy’s requirements was achieved in 2002–03. Access granted in part 62 Access denied 23 In process 24 Transferred to another agency 4 Request withdrawn by applicant 2 No document exists/No document located 15 Dealt with outside FOI 5 Other/No response from applicant 8 Total 180 [ 114]

APPENDICES FOR THE YEAR ENDED 30 JUNE 2003

VICROADS OFFICERS Section 7 (1)(a) of the Freedom of Information Act requires certain information to be published: Principal officer David Anderson (i) A statement setting out particulars of the organisation Chief Executive and functions of the agency, indicating, as far as Authorised officer requests Franca Chick practicable, the decision making powers and other Freedom of Information powers affecting members of the public that are Officer involved in those functions and particulars of any Authorised officer reviews Mark Miller arrangement that exists for consultation with, or Manager representation by, bodies and persons outside the Legal Services government administration in relation to the formulation of the policy in, or the administration of, the agency. A request for access to documents under the Freedom This information is located throughout this document of Information Act must: and in particular in the ‘Corporate Governance’ chapter. >> Be in writing (ii) A statement of the categories of documents that are >> Be accompanied by a $20 application fee or maintained in the possession of the agency. evidence of hardship (copy of a social security card, This information is as follows: evidence of unemployment, evidence of receipt of >> Administration and Management social security payments) >> Bicycle Programs >> Provide such information as is reasonably necessary >> Construction and Maintenance to enable the documents to be identified. >> Commercial Operations Freedom of Information requests should be sent to: >> Environment and Conservation MS FRANCA CHICK >> Emergency Services FREEDOM OF INFORMATION OFFICER VICROADS >> Finance LEVEL 5, 60 DENMARK STREET >> Human Resources KEW, VICTORIA >> Information Systems AUSTRALIA, 3101. >> Municipal VicRoads maintains a library that is available for public use. >> Policy and Planning The address and hours of opening are as follows: >> Projects VICROADS BUSINESS INFORMATION CENTRE >> Property VICROADS HEAD OFFICE GROUND FLOOR >> Public Transport 60 DENMARK STREET >> Research and Development KEW, VICTORIA >> Registration and Licensing OPENING HOURS: MONDAY TO FRIDAY, 9AM TO 5PM. >> Road Safety >> Statutory Planning >> Strategic Planning >> Technical >> Traffic Management >> Transport Safety >> Works Delivery. [ 115] APPENDICES

APPENDICES FOR THE YEAR ENDED 30 JUNE 2003

(iii) A statement of the material that has been prepared (vi) A statement designating by name the officer or officers by the agency under this Part for publication or for responsible within each agency for the initial receipt of, inspection by members of the public, and the places at and action upon, requests for access to a document. which a person may inspect or obtain that material. This information is provided earlier in this section. VicRoads produces a wide range of publications and (vii) A statement listing all boards, councils, committees and information sheets covering the scope of its services to other bodies constituted by two or more persons, that the Victorian public. These include: are a part of, or that have been established for the >> Annual Report purpose of advising, the agency, and whose meetings >> Corporate Plan are open to the public, or the minutes of whose meetings are available for public inspection. >> VicRoads Magazine The role and membership of the VicRoads Advisory >> Strategy documents, such as Arrive alive! 2002-2007: Board is outlined on page 56 of this report. Victoria’s Road Safety Strategy There are also a significant number of councils, >> Heavy vehicle information describing changes to transport laws, accreditation schemes, and vehicle committees and groups that provide advice and operating and access conditions stakeholder and community input to VicRoads and/or the Minister for Transport. Notable among these are the Registration and licensing information such as Getting >> Victorian Road Freight Advisory Council, Victorian there from Ls to Ps (in a range of community languages) Motorcycle Advisory Council, Victorian Bicycle Advisory >> Road safety information relating to road user safety, the Council and the Victorian Road Based Public Transport safe road environment and vehicle safety Advisory Council. Their 2002–03 activities are outlined in >> Road system management information regarding road the ‘Improving Our Effectiveness’ chapter of this report. assets, which include roads, bridges and roadsides, and Meetings are generally attended by nominated road system statistics representatives and not open to members of the public. >> Road project information, such as Princes Highway (viii) If the agency maintains a library or reading room that is Pakenham Bypass Environment Effects Statement. available for public use – a statement of that fact To receive any of the above publications or for further including details of the address and hours of opening of information contact the Manager Business Information the library or reading room. This information is provided Centre on (03) 9854 2447 or earlier in this section. email: [email protected] COMPLIANCE WITH THE WHISTLEBLOWERS (iv) A statement listing the literature available by way of PROTECTION ACT 2001 subscription services or free mailing lists. Pursuant to the Whistleblowers Protection Act 2001, Contact the Manager Business Information Centre on VicRoads has established procedures to deal with the (03) 9854 2447 or email: [email protected] for making of disclosures under the Act. These procedures have advice on subscription services and free mailing lists. been published electronically and made available to all staff. (v) A statement of the procedure to be followed by a Ongoing programs are being conducted to make staff aware person when a request for access to a document is of the purpose of the Act and the protection afforded by it. made to the agency. A protected disclosure co-ordinator has been appointed. This information is provided earlier in this section. To date, no disclosures have been made. . [ 116]

APPENDICES FOR THE YEAR ENDED 30 JUNE 2003

VICROADS WHISTLEBLOWERS ‘Detrimental action’ means: PROTECTION PROCEDURE (a) Action causing injury, loss or damage (b) Intimidation or harassment 1. PURPOSE (c) Discrimination, disadvantage or adverse treatment in To provide guidance for: relation to a person’s employment, career, profession, >> VicRoads staff and members of the public to make trade or business, including the taking of disciplinary disclosures of improper conduct action. >> VicRoads to investigate, report and act on disclosures ‘Improper conduct’ means: of improper conduct (a) Corrupt conduct; or >> Provide protection for persons who make disclosures or (b) A substantial mismanagement of public resources; or who may suffer reprisals in relation to those (c) Conduct involving substantial risk to public health or disclosures. safety; or 2. SCOPE (d) Conduct involving substantial risk to the environment; Applies to all VicRoads business areas. that would, if proved, constitute: 3. DEFINITIONS (e) A criminal offence; or The following definitions are taken from the (f) Reasonable grounds for dismissing or dispensing Whistleblowers Protection Act and the Ombudsman’s with, or otherwise terminating, the services of a public Guidelines November 2001. officer who was, or is, engaged in that conduct. ‘Corrupt conduct’ means: ‘Welfare manager’ means: (a) Conduct of a person (whether or not a public officer) A person responsible for looking after the general welfare that adversely affects, or could adversely affect, either of the whistleblower as it pertains to the making of the directly or indirectly, the honest performance of a disclosure. public officer’s or public body’s functions; or (b) Conduct of a public officer that amounts to the performance of any of his or her functions as a public officer dishonestly or with inappropriate partiality; or (c) Conduct of a public officer, a former public officer or a public body that amounts to a breach of public trust; or (d) Conduct of a public officer, a former public officer or a public body that amounts to the misuse of information or material acquired in the course of the performance of their functions as such (whether for the benefit of that person or body or otherwise); or (e) A conspiracy or attempt to engage in conduct referred to in paragraphs (a) to (d). [ 117] APPENDICES

APPENDICES FOR THE YEAR ENDED 30 JUNE 2003

4. KEY RESPONSIBILITIES

POSITION/ROLES RESPONSIBILITIES VicRoads Manager Investigations Protected Disclosure Co-ordinator under the Act VicRoads Investigation Officers Protected Disclosure Officers under the Act General Manager Human Resources Nominate a Welfare Manager when requested by Investigations Manager

5. PROCESS

INPUTS STEPS OUTPUTS (a) Possible misconduct Disclose improper conduct Disclosure of improper conduct (b) Disclosure of improper conduct Receive and assess disclosure Protected disclosure which is also a public interest disclosure (c) Protected disclosure which is Investigation of disclosure Report of findings also a public interest disclosure (d) Report of findings Reporting the investigation Misconduct and any harm remedied (e) Whistleblower Managing the welfare of Whistleblower protected and the whistleblower informed of rights (f) Employee against whom a Managing the person against Employee has been supported by VicRoads disclosure has been made whom a disclosure has been made (g) Whistleblower investigations Public reporting Statement in VicRoads Annual Report

Refer to the Ombudsman’s Guidelines for a more detailed description of the actions outlined above. These procedures are reviewed annually to ensure that they meet the objectives of the Act and accord with the Ombudsman’s Guidelines. [ 118]

APPENDICES FOR THE YEAR ENDED 30 JUNE 2003

5.1 DISCLOSE IMPROPER CONDUCT 5.3 INVESTIGATIONS Staff are encouraged to disclose improper conduct within Where the Ombudsman refers a disclosure to VicRoads for VicRoads in accordance with the advice contained in the investigation the Manager Investigations will appoint an VicRoads Code of Conduct and Ethics. The person receiving investigator to carry out an investigation of any alleged the disclosure must immediately forward the matter to the misconduct. Investigations Manager for assessment pursuant to the The Manager Investigations will ensure that any Whistleblowers Protection Act. persons involved in investigations of a protected disclosure Disclosures can be made direct to the Ombudsman. are aware of the provisions of the Whistleblowers For the purposes of the Whistleblowers Protection Act Protection Act. the Manager Investigations is the ‘Protected Disclosure The investigator in consultation with the Manager Co-ordinator’, and Investigation Officers are ‘Protected Investigations will: >> Disclosure Officers’. >> Set terms of reference for the investigation 5.2 RECEIVING AND ASSESSING DISCLOSURES >> Prepare an investigation plan The Manager Investigations will assess if the disclosure >> Ensure the principles of natural justice are followed contains the essential elements of a protected disclosure. >> Ensure confidentiality requirements are met Where the disclosure is assessed not to be a protected disclosure the matter does not need to be dealt with under >> Conduct the investigation the Whistleblowers Protection Act, and the Manager >> Keep the Manager Investigations informed of the Investigations will decide how the matter will proceed. general progress of the inquiry. Where the disclosure is assessed to be a protected The investigation may be taken over by the Ombudsman if disclosure, the Manager Investigations will determine requested by the Ombudsman, the Manager Investigations whether the disclosure is a public interest disclosure. or the person who made the disclosure. This assessment will be made within 45 days of the receipt The Manager Investigations will ensure that the Chief of the disclosure. Executive Officer and the whistleblower are kept regularly Where the Manager Investigations concludes that the informed of the progress of the handling of a protected disclosure is a public interest disclosure, the Manager disclosure, and will report to the Ombudsman about the Investigations will notify the person who made the progress of an investigation. disclosure of that conclusion, and refer the disclosure to Where the Ombudsman or the whistleblower requests the Ombudsman for formal determination as to whether information about the progress of an investigation, that it is a public interest disclosure. information will be provided within 28 days of the date Where the Manager Investigations concludes that the of the request. disclosure is not a public interest disclosure, the Manager Investigations will, within 14 days, notify the person who made the disclosure of that conclusion, and advise that person that he or she may request VicRoads to refer the disclosure to the Ombudsman for a formal determination as to whether the disclosure is a public interest disclosure and that this request must be made within 28 days of the notification. [ 119] APPENDICES

APPENDICES FOR THE YEAR ENDED 30 JUNE 2003

5.4 REPORTING THE INVESTIGATION If a whistleblower reports an incident of harassment, The investigator will submit a written report to the discrimination or adverse treatment that would amount to Manager Investigations on the findings of the investigation. detrimental action taken in reprisal for the making of the If the investigator finds the conduct disclosed has occurred, disclosure, the Welfare Manager will: the report will include recommendations for actions >> Record details of the incident to be taken. >> Advise the whistleblower of their rights under the Act If the Manager Investigations is satisfied that the >> Advise the Manager Investigations of the detrimental investigation has found that the disclosed conduct has action. occurred, the Manager Investigations will recommend to The taking of detrimental action in reprisal for the making the Chief Executive Officer/Deputy Chief Executive Officer of a disclosure can be an offence against the Act as well as the action which must be taken to prevent the conduct from grounds for making a further disclosure. Where such continuing or occurring in the future. The Manager detrimental action is reported, the Manager Investigations Investigations may also recommend that action be taken will assess the report as a new disclosure under the Act. to remedy any harm or loss arising from the conduct. Where a person who makes a disclosure is implicated in The Chief Executive Officer will provide a written report misconduct, VicRoads will handle the disclosure and protect to the Minister for Transport, the Ombudsman and the the whistleblower from reprisals in accordance with the Act, whistleblower setting out the findings of the investigation the Ombudsman’s Guidelines and these procedures. and any remedial steps taken. The Chief Executive Officer will make the decision as to Where the investigation concludes that the disclosed whether disciplinary or other action will be taken against conduct did not occur, the Manager Investigations would a whistleblower. report these findings to the Ombudsman and to the whistleblower. 5.6 MANAGEMENT OF THE PERSON AGAINST WHOM A DISCLOSURE HAS BEEN MADE 5.5 MANAGING THE WELFARE OF THE WHISTLEBLOWER VicRoads recognises that employees against whom The Manager Investigations is responsible for ensuring that disclosures are made must also be supported during the whistleblowers are protected from direct and indirect handling and investigation of disclosures. VicRoads will detrimental action. take all reasonable steps to ensure the confidentiality of the When appropriate the General Manager Human Resources person who is the subject of the disclosure during the will appoint a welfare manager who will be responsible for assessment and investigation process. looking after the general welfare of the whistleblower and The Manager Investigations will ensure that the person advising the whistleblower of their rights. who is the subject of any disclosure that is investigated by The Manager Investigations will ensure that the or on behalf of VicRoads: whistleblower is kept informed of action taken in relation >> Is informed as to the substance of the allegations to their disclosure. >> Is given the opportunity to answer the allegations before a final decision is made >> Is informed as to the substance of any adverse comment that may be included in any report arising from the investigation >> Has their defence set out fairly in any report. [ 120 ] APPENDICES ubro ulig htcnomt tnad 64 Nil Nil Nil Number ofbuildingsbrought intoconformity thisyear Number ofbuildingsthatconform tostandards CONFORMITY Involving majorexpenditure andurgent attention Notices issued for rectification ofsubstandard buildingsthatrequire urgent action MAINTENANCE Occupancy permitsissued W Building certified for approval BUILDING WORKS COMPLIANCE WITHTHEBUILDINGACT1993 Whistleblower Protection Actinitsannualreport. VicRoads willreport ontheactivitiesunder PUBLICREPORTING 5.7 in adisclosure are clearly wrong orunsubstantiated. subject ofadisclosure where theallegations contained VicRoads willgive itsfullsupporttoaperson whoisthe advise theperson oftheoutcome oftheinvestigation. investigation, theManagerInvestigations willformally disclosure isaware oftheallegations orthefact ofthe investigated, and theperson whoisthesubjectof Where theallegations inadisclosure have been rsi osrcinadtesbeto adtr npcin 10 orks inconstruction andthesubjectofmandatoryinspections

FOR THE YEAR ENDED 30 JUNE 2003 NUMBER Nil 10 [ 121] APPENDICES

APPENDICES FOR THE YEAR ENDED 30 JUNE 2003

COMPLIANCE AND ENFORCEMENT APPENDIX Significant increases were recorded for the following COMPLIANCE AND ENFORCEMENT offences (figures cover all offences including infringement notices): VicRoads, through its Transport Safety Services and Commercial Vehicle Operations Section, works with the >> Overdimensional vehicles (from 617 to 892) transport industry to improve compliance with transport >> Fail to comply with other operational (schedule) law. Activities include education sessions, industry liaison, requirements (from 224 to 290) and operator accreditation, complemented by the >> Insecure load (from 625 to 707) development of new legislation and reforms in vehicle >> Use of hand-held communications equipment standards and operating arrangements. Enforcement (from 295 to 383) activity, as reported below, targets those who do not comply with regulations, and is just one aspect of VicRoads overall >> Unregistered vehicle/trailer (from 817 to 917) approach to improved compliance. >> Unlicensed/unendorsed licence (from 377 to 486) A key initiative in 2002–03 was the passing of the >> Unsafe vehicle/mechanical defects (from 195 to 288). Road Safety (Heavy Vehicle Safety) Bill. This legislation SUMMARY OF OUTCOMES OF OFFENCE REPORTS AND strengthens inspection and search powers relating to INFRINGEMENT NOTICES investigation of heavy vehicle offences and will increase In 2002–03, reported offences totalled 1613. Of these, the effectiveness of ‘chain of responsibility’ provisions in 713 charges were laid, with 711 being proven in court. existing and proposed future legislation. As a result of proven cases, the Magistrate’s Court of VicRoads contributed to the development of the National Victoria imposed financial penalties totalling $441,140. Heavy Vehicle Safety Strategy released in June 2003. A total of 9278 infringement notices were issued for The associated Action Plan focuses on a relatively small 2002–03 and 316 pleas to review notices were received. number of measures that can be pursued on a national Infringement penalties totalled $2,140,810. basis. It includes strategic objectives related to improved Combined monetary penalties from court fines and compliance such as increased seat belt usage, more infringement notices amounted to $2,581,950. effective speed management, reduced driver impairment, enhanced driver and industry management and The legal firm Maddocks provided file preparation and effective enforcement. records management services for VicRoads under contract. This report has been compiled from data provided by Reports of non-compliance with regulations are referred Maddocks and by LMT Australia Pty Ltd, which is to VicRoads Commercial Vehicle Operations Section responsible for processing infringement notices in Victoria. for resolution in a consistent and appropriate way. The consolidated report below is a summary of detected non-compliance with the acts and regulations from on-road reports and infringement notices issued by VicRoads Transport Safety Services. The range of offences was consistent with the previous financial year. Reported offences increased from 1340 in 2001–02 to 1613 in 2002–03. There was also an increase in the number of infringement notices issued, from 8154 in 2001–02 to 9278 in 2002–03. [ 122 ] Road Rules –Victoria 1999 nesaeRa rnpr euain 96(omnelh 415,345 24 Interstate RoadTransport Regulations1986(Commonwealth) ofrhrato arne 143 88 No provable offence (insufficientevidence) No furtheractionwarranted Infringement notice issued hre ihrw/tukot21 Total 0 2 T OffencesAct1966 Summary 12 Interstate RoadTransport Act1985 Road SafetyAct1986 SUMMARY OFTOTAL CONVICTIONSANDFINESBYLEGISLATION W Good behaviourbonds Charges withdrawn/struck out Custodial sentences (imprisonment) Convictions Prosecution casesproven anddismissed Prosecution casesdismissed Prosecution casesproven Prosecution casesheard OFFENCE REPORTS FINALISED odSft Dies euain 991 6315 262,540 367 10 Road Safety (Vehicles) Regulations1999 Road Safety (Drivers) Regulations1999 APPENDICES ransport Act1983 arning letter issued in lieu Cmowat)64350 6 (Commonwealth) fpoeuin36 of prosecution FOR THE YEAR ENDED 30 JUNE 2003 CONVICTIONS 2 441,140 628 628 711 713 0 147,805 200 94185 19 27 71 1 1 FINES $ 300 300 [ 123] APPENDICES

APPENDICES FOR THE YEAR ENDED 30 JUNE 2003

CONVICTIONS FINES $

MAJOR SAFETY OFFENCES WITHIN TOTAL COURT CONVICTIONS Overdimensional vehicles 21 13,995 Overweight vehicles (State) 203 145,975 Overweight vehicles (Commonwealth) 16 11,285 Overweight B-doubles (State) 62 54,955 Overweight B-doubles (Commonwealth) 6 4350 Speeding offences 5 895 Logbook breaches 8 5565 Insecure load 21 11,485 Unsafe vehicle/mechanical defects 9 10,000 Traffic breaches 25 7990 Unregistered vehicle/trailer 104 97,640 Unlicensed/unendorsed licence 19 10,600 Fail to comply with operational (schedule) requirements 9 5250 Total 508 379,985

SUMMARY OF INFRINGEMENT NOTICES Pleas to review notice 316 Elected to appear in court 56 Unpaid notices approved for PERIN court enforcement 1429 Cancelled notices 308 Infringement notice issued in lieu of offence report 36 [ 124 ] TOTAL 2955 43,995 Other 53,720 MISCELLANEOUS P SPECIAL CATEGORIES 177 7 293 F SAFETY OFFENCES Other Lighting offences Signs andsignals TRAFFIC OFFENCES Exceeding speedlimitbymore than30km/h Exceeding speedlimitby15to29km/h Exceeding speedlimitbyupto15km/h SPEEDING Offences INFRINGEMENT NOTICESISSUED neitrdvhcetalr83402,560 813 51,705 383 F F Overdimensional vehicles Overweight vehicle Excessive hours ofdriving Logbook offences Unlicensed driver Unregistered vehicle/trailer Unroadworthy vehicle Insecure load Use hand-heldcommunication equipment APPENDICES ail towear seatbelt i ocml ihpltecr eurmns81320 46,365 8 281 ail tocomply withpilot/escort requirements ail tocomply withschedule requirements arking infringements

FOR THE YEAR ENDED 30 JUNE 2003 O SUDPENALTY $ NO. ISSUED 282,140,810 9278 79584,375 192,720 1799 1168 9 44,720 498 115,305 996 7 143,715 218,500 871 72,325 92,610 467 61,830 279 686 458 63980 2340 26 18 41480 24 64290 26

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VICROADS OFFICE ADDRESSES

HEAD OFFICE VICROADS HEAD OFFICE ADMINISTRATION 60 DENMARK STREET, KEW, 3101

METROPOLITAN REGIONAL OFFICES REGISTRATION AND NORTH WEST REGION LICENSING OFFICES 499 BALLARAT ROAD, SUNSHINE, 3020 ARARAT HORSHAM SHOP 2, 56 HIGH STREET, ARARAT, 3377 14 O’CALLAGHANS PARADE, SOUTH EAST REGION HORSHAM, 3400 12 LAKESIDE DRIVE, BURWOOD EAST, 3151 BAIRNSDALE 535 PRINCES HIGHWAY, BAIRNSDALE, 3875 KYNETON 2 BEAUCHAMP STREET, KYNETON, 3444 COUNTRY REGIONAL OFFICES BALLARAT SOUTH WESTERN REGION 88 LEARMONTH ROAD, WENDOUREE, 3355 LEONGATHA 180 FYANS STREET, GEELONG SOUTH, 3220 ANDERSON STREET (SOUTH GIPPSLAND HIGHWAY), BENALLA LEONGATHA, 3953 WESTERN REGION 50-52 CLARKE STREET, BENALLA, 3672 88 LEARMONTH ROAD, WENDOUREE, 3355 MARYBOROUGH BENDIGO C/O CENTRAL GOLDFIELDS SHIRE OFFICE EASTERN REGION 57 LANSELL STREET, BENDIGO, 3550 120 KAY STREET, TRARALGON, 3844 NEILL STREET, MARYBOROUGH, 3465 BROADMEADOWS MELTON NORTH EASTERN REGION CORNER PEARCEDALE PARADE AND C/O SHIRE OFFICES 50–52 CLARKE STREET, BENALLA, 3672 JOHNSTONE STREET, BROADMEADOWS, 3047 232 HIGH STREET, MELTON, 3337 NORTHERN REGION BURWOOD EAST 57 LANSELL STREET, BENDIGO, 3550 12 LAKESIDE DRIVE, BURWOOD EAST, 3151 MILDURA 109–111 ORANGE AVENUE, MILDURA, 3500 CAMBERWELL PROJECT OFFICES 3 PROSPECT HILL ROAD, CAMBERWELL, 3124 MORWELL CALDER CORRIDOR PROJECTS 87 PRINCES DRIVE, MORWELL, 3840 CARLTON 2 BEAUCHAMP STREET, KYNETON, 3444 459 LYGON STREET, CARLTON, 3053 OAKLEIGH SOUTH CRAIGIEBURN BYPASS PROJECT 1 ESKAY ROAD, OAKLEIGH SOUTH, 3167 COBRAM 814 COOPER STREET, SOMERTON, 3062 C/O MOIRA SHIRE OFFICE PORTLAND EASTERN PROJECTS 44 STATION STREET, COBRAM, 3644 114A PERCY STREET, PORTLAND, 3305 UNIT 12, 613 , COLAC SALE MITCHAM, 3132 COLAC AUTO CENTRE 28 PRINCES HIGHWAY, SALE, 3850 PRINCES HIGHWAY, COLAC WEST, 3250 GEELONG ROAD PROJECT SEYMOUR 10 WALLACE AVENUE, POINT COOK, 3030 DANDENONG 5 CRAWFORD STREET, SEYMOUR, 3660 16 PRINCES HIGHWAY, DOVETON, 3177 GOULBURN VALLEY HIGHWAY PROJECT SHEPPARTON 166 BENALLA ROAD, SHEPPARTON, 3630 DROMANA 231–239 CORIO STREET, SHEPPARTON, 3630 SHOP 11, DROMANA CENTRAL HALLAM BYPASS PROJECT SUNBURY 143 POINT NEPEAN ROAD, DROMANA, 3936 40 BELGRAVE–HALLAM ROAD, HALLAM, 3805 C/O SHIRE OFFICES ECHUCA 36 MACEDON STREET, SUNBURY, 3429 5 MUNDARRA ROAD, ECHUCA, 3564 SUNSHINE FRANKSTON 499 BALLARAT ROAD, SUNSHINE, 3020 71 HARTNETT DRIVE, SEAFORD, 3198 SWAN HILL GEELONG 70 NYAH ROAD, SWAN HILL, 3585 180 FYANS STREET, GEELONG SOUTH, 3220 WANGARATTA GREENSBOROUGH 6–8 HANDLEY STREET, WANGARATTA, 3677 DIAMOND VILLAGE SHOPPING CENTRE, NEPEAN STREET, WATSONIA, 3087 WARRAGUL UNIT 5, 131 NORTH ROAD, WARRAGUL, 3820 HAMILTON RILEY STREET, HAMILTON, 3300 WARRNAMBOOL 29 JAMIESON STREET, WARRNAMBOOL, 3280 HOPPERS CROSSING 52–64 OLD GEELONG ROAD, WODONGA HOPPERS CROSSING, 3029 82–86 ELGIN STREET, WODONGA, 3690