DEPARTMENT OF INFRASTRUCTURE
ANNUAL REPORT 2004–05 Annual Report 2004–05
27 October 2005
Peter Batchelor MP Minister for Transport
John Lenders MP Minister for Major Projects
Theo Theophanous MLC Minister for Energy Industries and Resources
Marsha Thomson MLC Minister for Information and Communication Technology
80 Collins Street Melbourne Victoria 3000 www.doi.vic.gov.au
Dear Ministers
Annual Report 2004–05
In accordance with the provisions of the Financial Management Act 1994, I have pleasure in submitting for presentation to Parliament the Department of Infrastructure’s Annual Report for the year ended 30 June 2005.
Yours sincerely
Howard Ronaldson Secretary Department of Infrastructure
i Published by Department of Infrastructure 80 Collins Street, Melbourne
© State Government of Victoria 2005
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ii Secretary’s Foreword
In 2004–05, the Department of Infrastructure (DOI) and its • Rail services to Ararat began in July 2004 as part of the agencies contributed to achieving a number of significant Government’s commitment to reintroduce country government outcomes and objectives. passenger services.
• The Austin Health Redevelopment and Mercy Hospital for • The Vermont South Tram Extension was completed, with Women Relocation project was completed in mid-2005, services starting in July 2005, thereby extending with both hospitals fully operational at their co-located coordinated tram and bus services between East Burwood site. This is Victoria’s largest joint hospital project. and Knox shopping centre seven days a week.
• Construction began on EastLink, Australia’s largest • Marshall Railway Station was completed and was urban road project, with 40 km of freeway-standard serviced by Melbourne to Warrnambool trains from road, 17 interchanges, the State’s largest ever bridge April 2005. construction program and the latest electronic tolling • VicRoads completed upgrades of Narre system. Warren–Cranbourne Road and the Eastern Freeway • The Telecommunications Purchasing and Management (Springvale Road to Park Road) and made substantial Strategy (TPAMS) was successfully negotiated. Victorian progress in the planning and construction of a large government departments’ telecommunications costs will portfolio of State and federal road projects including: the be almost $200 million lower over the next five years Albury/Wodonga Bypass, Geelong Bypass, Pyalong (assuming the same pattern of use), making the Bypass, Plenty Road duplication and Moorooduc introduction of new programs, such as the provision of Highway works. fibre optic broadband to all schools, possible. In addition, • The Linking Melbourne: Metropolitan Transport Plan (MTP), more than $100 million worth of ICT infrastructure will be which provides for an integrated approach to the delivered across Victoria. planning of road and public transport services, was • The first sections of the Regional Fast Rail (RFR) project released in November 2004. This plan is now guiding were completed in mid-2005. Services between Corio investment decisions and service improvements across and Geelong on the Geelong line, and between the network. Watergardens and Sunbury on the Bendigo line, are now • A much-needed new Smartcard-based ticketing solution operating with a new state-of-the-art automatic signalling for the public transport system is being progressed, with system and rebuilt tracks. By mid-2006, all elements of a planned introduction in 2007. the RFR project will be complete, with improved services and a new timetable. • DOI successfully negotiated a vital new infrastructure project to address one of the major road congestion • Australia’s first synchrotron building was completed in bottlenecks in Melbourne – the Calder Freeway–Tullamarine February 2005. Machine components are currently being interchange – without additional funding from government. installed, with the handover of an operational facility expected in 2007. • DOI was close to finalising a significant agreement with the owners of Hazelwood Power Station in the Latrobe • The safety-net price path agreed with energy retailers for Valley to cap greenhouse emissions while securing a the 2004–07 period operated successfully in 2004–05. continued affordable electricity supply for Victorians into This agreement delivers real price reductions in electricity the future. services, constrains gas prices and promotes greater competition in the retail energy markets. By 2007, • Rail Access legislation, promoting increased rail freight Victorians will be paying up to 5.6 per cent less in real access and competition, was enacted in May 2005. terms for their electricity than they were paying at the • The Melbourne Port@L Board substantially prepared time the price path was agreed. a draft development strategy for integrating the port • Work on the Spencer Street Station Redevelopment was and the adjacent freight transport facilities, including the progressed while the station remained functioning and Dynon rail precinct, into a single world-class intermodal trains kept running. The main station works will be largely hub. The draft strategy will be completed early in the complete by the end of 2005, with final completion in new financial year. mid-2006.
iii DOI Annual Report 2004–05 • The contract for the Royal Melbourne Showgrounds • the Yarra Precinct Pedestrian Link is nearing completion redevelopment was signed in June 2005. The • extensive planning has taken place to provide for redevelopment will be completed in time for the 2006 effective traffic management and public transport to all Royal Melbourne Show. events for visitors and residents. The opening and • Victoria developed a Rail Safety Bill which will be closing ceremonies present particular challenges. introduced into Parliament in the Spring 2005 session. While the Games are taking place, we must also Key features of the Bill include: safety duties for a range continue to provide for the ongoing requirements of of rail industry participants; a strengthened rail safety business and commuters accreditation regime; and the establishment of the Office • security of critical infrastructure is being carefully of the Executive Director, Public Transport Safety. Victoria planned, to provide protection and aid emergency has also been working with the National Transport management. Commission and other jurisdictions to develop model national rail safety legislation. Many large, complex and significant projects across Melbourne and Victoria will come to fruition during 2005–06, • The Flinders Street overpass has been demolished the largest being RFR services and the Spencer Street and work has started on the construction of a Station redevelopment. The Government will continue to new intersection at Flinders and King Streets, invest in the Country Train Safety System to provide transforming Melbourne CBD’s west end. Once the benchmark safety standards for our passenger rail system. new intersection is finished, work can begin on extending the Melbourne Aquarium. Other complex projects which will be progressed during the year include: • Tram services on the Docklands Drive Tramline Extension to New Quay began in January 2005. • the Melbourne Convention Centre development
• In April 2005, works began on the Craigieburn Rail • the Dynon Port Rail Link Project, which will extend electrified metropolitan services • the return of passenger services to Mildura and from Broadmeadows to Craigieburn and provide a new Leongatha railway station for Roxburgh Park. • the Dandenong public transport corridor planning and • The final of 59 new Combino trams entered service in feasibility studies, to develop options for a better, longer November 2004, bringing the total fleet of modern, low- term outcome for transport along this congested corridor floor trams to 95. In addition, 197 older trams have been refurbished and works to improve the safety and • trial dredging in Port Phillip Bay, to determine the reliability of Melbourne’s historic W-class trams were significance of environmental risks involved with completed in January 2005. deepening shipping channels serving the Port of Melbourne and to better inform a decision on whether • Most of the new X'Trapolis and Siemens trains also to proceed with the project entered service during the 2004–05 financial year. • bus contract reform, which is vital in terms of commercial • DOI ensured that redevelopment work at Melbourne negotiations to ensure value-for-money and the delivery Central shopping complex caused minimal disruption of improved bus services where they are most needed to users of the underground loop railway station, and that improved access to the station was provided as • Dandenong Transit City, which should spur significant part of the redevelopment. commercial investment in Dandenong
At the end of 2004–05, one of the immediate challenges is to • improved route and demand-responsive transport ensure that we are ready for the 2006 Commonwealth services in regional Victoria by working with local Games. As part of this work: communities to better marshal government and community resources. • the Commonwealth Games Village is nearing completion
• the Melbourne Sports and Aquatic Centre Stage 2 is entering its final phase
iv As the Secretary of a Victorian government department, I will also be championing the needs of the people of regional Victoria. My focus will be the people of Gippsland.
This coming year will be tremendously challenging. As well as bringing massive infrastructure projects to fruition, we must also develop options for future infrastructure investment. There has been much public comment on the state of Australia’s infrastructure. While the informed consensus is that there is no particular crisis in Victoria, we are acutely aware of the need to develop a pipeline of infrastructure projects that will continue our competitive advantage as a strong economy in a highly attractive and liveable city and State.
I would like to thank our capable and hardworking people and our portfolio colleagues again for a year of strong endeavour, and look forward to an exciting year in which we can continue to contribute to keeping Victoria a safe and productive State.
Howard Ronaldson Secretary Department of Infrastructure
v DOI Annual Report 2004–05 Contents
Transmittal letter i Secretary’s Foreword iii Abbreviations viii Vision, Mission, Values x Infrastructure Portfolios 1 Organisational Chart 3 DOI’s Management Committee 4 Chief Finance Officer’s Executive Analysis 9 Outcome 1. Public safety and security 11 Outcome 2. Infrastructure delivery and management 19 Outcome 3. Access and mobility 29 Outcome 4. Connected Victoria 39 Outcome 5. Rural and regional development 45 Outcome 6. Seamless freight and logistics system 51 Outcome 7. Secure and sustainable energy supply 59 Outcome 8. Integrated policy development 65 Outcome 9. Organisational capability building 71 Financial Statements 75 Appendixes 135 Output Performance Measures 136 Legislation administered as at 30 June 2005 166 Budget Portfolio Outcomes 170 People Profile 175 Statutory Authorities’ Executive Numbers 176 Employee Relations 177 Freedom of Information 178 DOI’s Audit Committee 179 National Competition Policy 179 Disclosure of Major Contracts Compliance 179 Consultancies 180 Whole-of-government reporting framework – multicultural/women/youth/indigenous affairs 181 Whistleblowers Protection Act 2001 196 Other available information 196 Victorian Industry Participation Policy 197 Building Act Compliance 197 Publications 198 Environmental Performance Report 199 Disclosure Index 201 Statutory Authorities 203 DOI Whistleblowers Protection Policy 218 DOI Contact Information 229
vii DOI Annual Report 2004–05 Abbreviations
Please note: Where the term ‘the Government’ appears throughout this report, it refers specifically to the Victorian Government.
AAV Aboriginal Affairs Victoria MRET Mandatory Renewable Energy Target ACCC Australian Competition and Consumer Commission MSP maritime security plan AEMC Australian Energy Market Commission MSV Marine Safety Victoria AER Australian Energy Regulator MTP Metropolitan Transport Plan AG Auditor-General NECA National Electricity Code Administrator AIFRS Australian Equivalents to International Financial Reporting NEGA National Express Group Australia Standards NEM National Electricity Market AMES Australian Multicultural Education Services NEMMCO National Electricity Market Management Company AR/M Austin Health Redevelopment and Mercy Hospital for NICT National Institute for Communication Technology Women Relocation Project NICTA National Information and Communications Technology ARTC Australian Rail Track Corporation Institute of Australia ATO Australian Taxation Office NSW New South Wales BIF Broadband Innovation Fund NTS New Ticketing Solution CALD culturally and linguistically diverse OCEI Office of the Chief Electrical Inspector CAT computer-aided theodolite OCIO Office of the Chief Information Officer CCTV closed-circuit television OGS Office of Gas Safety CEO Chief Executive Officer OH&S Occupational Health and Safety CITS Corporate Information Technology Services OPE Office of Public Employment CML CityLink Melbourne Ltd OPR operational performance regime CPRD Capital Planning and Review Division PFD personal flotation device CSI Customer Satisfaction Index PIAP Public Internet Access Program CSO Customer Service Officers PN Pacific National CTO Chief Technology Officer POHC Port of Hastings Corporation DDA Disability Discrimination Act 1992 POMC Port of Melbourne Corporation DE&T Department of Education and Training PPD Planning and Policy Division DIIRD Department of Industry, Innovation and Regional Development PPPS PPP Solutions DHS Department of Human Services PTC Public Transport Corporation DOA Development and Operations Agreement PTO Public Transport Ombudsman DOI Department of Infrastructure PTS Public Transport Safety DPC Department of Premier and Cabinet PTSV Public Transport Safety Victoria DPI Department of Primary Industries PV Partnerships Victoria DSE Department of Sustainability and Environment R&D research and development DTF Department of Treasury and Finance RASV Royal Agricultural Society of Victoria DUKC dynamic under keel clearance RFID radio frequency identification DVC Department for Victorian Communities RFR Regional Fast Rail ECEPP eCommerce Exhibition Projects Program RMF Regional Management Forum ED Executive Director RMS Royal Melbourne Showgrounds EEO Equal Employment Opportunity RTBU Rail, Tram and Bus Union EES Environment Effects Statement SCOT Standing Committee on Transport EMS Environmental Management System SEAV Sustainable Energy Authority of Victoria EPA Environment Protection Authority SEES Supplementary Environment Effects Statement ERC Energy Retail Code SEITA Southern and Eastern Integrated Transport Authority ESC Essential Services Commission SET science, engineering and technology ETIS Energy Technology Innovation Strategy SME small-to-medium enterprise FM Facility Management SSSA Spencer Street Station Authority FOI Freedom of Information TAC Transport Accident Commission FRC Full Retail Contestability TCS Telecommunications Carriage Services FTE full-time equivalent TEU twenty-foot-equivalent units FTTH fibre to the home TJH Theiss John Holland GIC General Interest Charge TNSP Transmission Network Service Provider GRS graduate recruitment scheme TPAMS Telecommunications Purchasing GST Goods and Services Tax and Management Strategy HRM Human Resources Management TTA Transport Ticketing Authority IBL industry-based learning UK United Kingdom ICT Information and Communication Technology USA United States of America IFRS International Financial Reporting Standards VAGO Victorian Auditor-General’s Office IRI International Roughness Index VCAT Victorian Civil and Administrative Tribunal ITS intelligent transport systems VENCorp Victorian Energy Networks Corporation KAMCO Keane Australia Micropayment Consortium Pty Ltd VET vocational education training KPI Key Performance Indicator VicRoads Roads Corporation of Victoria LPG liquid petroleum gas VicTrack Victorian Rail Track Corporation MAPT Multi Agency Policy Team VicUrban Victorian Urban Development Authority MCE Ministerial Council on Energy VIPP Victorian Industry Participation Policy MCLA Melbourne CityLink Authority VOTS Victorian Office Telephony Services METROL metropolitan train control VPS Victorian Public Service MIL Multilingual Information Line VRCA Victorian Regional Channels Authority MMV Multimedia Victoria VRS Victorian Rail Services Pty Ltd MPTP Multi Purpose Taxi Program WAC Wauthaurong Aboriginal Cooperative MPV Major Projects Victoria YES Youth Employment Scheme
viii Department of Infrastructure DOI aims to be a leader in policy, planning, development and delivery of integrated infrastructure that contributes to sustainable environmental, economic and social development in Victoria.
ix DOI Annual Report 2004–05 Vision Values
To be a department that delivers the Government’s Growing The values are the platform for our actions at DOI and Victoria Together vision by providing innovative and integrated highlight the commitment to professionalism maintained by strategic advice to deliver the best possible infrastructure and DOI people. services for Victorians. Teamwork We acknowledge and support our shared goals. We openly Mission cooperate and communicate our knowledge and we share our expertise and information within our work units across The purpose of DOI is to lead, in collaboration with DOI, individually and organisationally. stakeholders and the community, strategic planning, integration, development and management of transport, Diversity energy policy, information and communication technology, We value our people’s diversity. We respect, recognise and major projects, freight and logistics and the safety and help cultivate each other’s diverse knowledge, skills and security of critical infrastructure. capabilities. We are committed to carrying out our role in a way that is economically, socially and environmentally sustainable. Integrity We are ethical, accountable and transparent in our dealings We do this by: with colleagues, stakeholders and clients. • linking the transport system of road, rail, air and sea channels to promote economic and social development Commitment through increased mobility and access, and a more cost- We are committed to the provision of high-quality services effective freight and logistics sector and are responsive to the changing demands of the community, government and other stakeholders. • promoting efficient and integrated transport services across different modes while managing road and freight Innovation traffic growth, in order to address the needs of the We support lifelong learning and flexibility, and encourage travelling public and industry innovation to provide solutions and achieve and deliver the • delivering the Government’s major transport right outcomes. infrastructure investment projects
• providing strategic policy advice, analysis and support to government, our stakeholders and communities in the areas of energy policy, information and communication technology, and transport systems
• delivering a wide range of other major projects on behalf of government departments and agencies.
x Infrastructure Portfolios
Peter Batchelor MP John Lenders MP Minister for Transport Minister for Major Projects
Transport portfolio Major Projects portfolio Incorporating public transport and roads, the Transport The Major Projects portfolio plans, manages and facilitates portfolio covers: key infrastructure and land development and construction projects, which enhance the economic and cultural • transport policy and planning infrastructure of the State. Key major projects underway • road system development and maintenance in Victoria during 2004–05 include:
• rail and road freight and logistics • Austin Health Redevelopment and Mercy Hospital for Women Relocation • contract and lease arrangements for train, tram, route bus, school bus and ferry services and infrastructure • Australian Synchrotron project
• regulation of taxi, hire car, accident towing and driving • Beacon Cove – Stage 2 development instruction industries • Bonegilla Migrant Experience Heritage Park • regulation of public transport and road safety • Former Fishmarket Site development, including • accessible transport services and facilities demolition of the Flinders Street Overpass
• traffic system management • Industrial Waste Management Facilities
• driver licensing and vehicle registration • Melbourne Convention Centre development
• management of the Government's CityLink contract • Melbourne Recital Centre and MTC Theatre project
• management of large and complex transport infrastructure • Melbourne Wholesale Markets relocation projects crucial to State development (for example, • Royal Melbourne Showgrounds redevelopment Eastlink project, Spencer Street Station redevelopment) • State Library of Victoria redevelopment • development, planning and policy for Victoria's ports • Westgate Bridge Memorial Park. • freight and logistics planning and infrastructure Projects managed by Major Projects Victoria (MPV) but • marine safety and pollution response nominated under the Commonwealth Games Arrangements • sea passenger infrastructure Act and where the Minister for Commonwealth Games is responsible include: • cruise shipping • Commonwealth Games Athletes’ Village • management of Port Phillip Bay shipping channels. • Melbourne Sports and Aquatic Centre Stage 2 Statutory authorities Redevelopment
• Roads Corporation of Victoria (VicRoads) • Yarra Precinct Pedestrian Link. • Transport Ticketing Authority (TTA) Statutory authorities • V/Line Passenger Corporation (V/Line Passenger) • Victorian Urban Development Authority (VicUrban). • Victorian Rail Track Corporation (VicTrack)
• Spencer Street Station Authority (SSSA)
• Port of Hastings Corporation (POHC)
• Port of Melbourne Corporation (POMC)
• Southern and Eastern Integrated Transport Authority (SEITA)
• Victorian Regional Channels Authority (VRCA).
1 DOI Annual Report 2004–05 Theo Theophanous MLC Marsha Thomson MLC Minister for Energy Industries and Resources Minister for Information and Communication Technology Energy Industries portfolio The Energy portfolio is responsible for ensuring the delivery of Information and Communication Technology portfolio secure, affordable and safe energy to Victorian consumers and The Information and Communication Technology (ICT) businesses, and ensuring that the supply and use of energy is portfolio includes responsibility for: increasingly sustainable. DOI is continuing to develop energy markets and regulatory arrangements that deliver: • developing strategies to grow the ICT sector in Victoria
• competitive prices and service levels for households and • ICT industry investment attraction businesses • improving ICT infrastructure and access • an effective safety net for consumers in the transition to • encouraging uptake of ICT by Victorian businesses competition • ensuring Victorians have the skills required by the ICT • timely investment in new energy supplies industry • increasingly reliable energy networks • providing internet training and access to the Victorian • safety in the production, transport and use of energy community
• the more efficient use of energy • whole-of-government purchasing arrangements for telecommunications services • lower greenhouse emissions from energy supply and use over time. • using ICT to transform the way government delivers its services. Statutory authorities • Office of Chief Electrical Inspector (OCEI)*
• Office of Gas Safety (OGS)*
• Victorian Energy Networks Corporation (VENCorp)
• National Electricity Code Administrator (NECA)
• National Electricity Market Management Company (NEMMCO).
* In August 2005, the OCEI merged with the OGS to establish the new energy safety regulator, Energy Safe Victoria (ESV). Carlo Carli MP Parliamentary Secretary for Infrastructure
The Parliamentary Secretary for Infrastructure provides policy support to DOI Ministers in relation to:
• taxi administration and reform
• tow-truck regulation
• bus reform
• information technology
• channel deepening project.
Infrastructure Portfolios 2 STATUTORY BODIES Project Development Group Project Management Group Project and Property Development Group Victoria Partnerships Group Projects Business Services Station Spencer Street Authority Victorian Urban Development Corporation (VicUrban) Major Projects Victoria James Cain Executive Director Carlo Carli MP Infrastructure Projects Kelly Pat Executive Director Country Passenger Rail Services (Ararat and Bairnsdale) Craigieburn Rail Project South Tram Vermont Extension Rail Link Dynon Port Rail Bypass Wodonga Projects Other Infrastructure for Infrastructure Alf Smith Parliamentary SecretaryParliamentary STATUTORY BODIES Southern and Eastern Integrated Transport Authority Deputy Secretary – Capital Regional Fast RailRegional Fast Project Tait Frank Tait Frank Executive Director Capital Planning and Review Gail Moody Executive Director John Lenders MP John Lenders CEO David Anderson Minister for Major Projects Roads Corporation of Victoria (VicRoads) STATUTORY BODIES Ports and Marine Ports and Logistics Freight Marine Safety Victoria of Melbourne Port Corporation Channels Victorian Regional Authority of Hastings Corporation Port Freight, Logistics Logistics Freight, and Marine John Rogan Executive Director STATUTORY BODIES Public Transport Public Transport Jim Betts Director Policy Commercial Business Support Franchise Relationships Business Development and Asset Infrastructure Management Rail and Taxi Bus, Regional Information Systems and Analysis Victorian Rail Track Corporation (VicTrack) Authority Ticketing Transport V/Line Passenger Organisational Chart as at 30 June 2005 Peter Batchelor MP Peter Minister for Transport Secretary Public Transport Safety* Graham Edkins Director Howard Ronaldson Howard Management Committee Corporate Resources Bob McDonald Executive Director Budget Management and Financial Analysis Management Human Resource Affairs Corporate Public Contract Services and Risk Management Services Executive and Legal Corporate IT Services Corporate Systems and Financial Operations and Commercial Property Development Marsha Thomson MLC Communication Technology Minister for Information and Planning and Policy John Robinson Executive Director Integrated Planning Economics Infrastructure and Policy Corporate Planning and Performance Department of Infrastructure form Public Transport Safety Victoria, a specialist body within DOI. form Public Transport Energy Safe Victoria. energy safety regulator, * Safety group was restructured in August 2005 to The Public Transport ** In August 2005, the OGS and OCEI merged to establish new Director Len Gainsford Len Audit Committee Audit and Assurance Multimedia Victoria Straw Randall Executive Director ICT Investment and Business Development Access and Regional Policy Industry and Community Development Officer Chief Technology and Resources Theo Theophanous MLC Minister for Energy Industries STATUTORY BODIES Retail Markets Retail Wholesale Markets and Legislation Legal Supply Security Projects Policy Security and Emergency Management Co-ordination Networks Victorian Energy Corporation National Electricity Market Management Company National Electricity Code Administrator Office of Gas Safety** Office of the Chief Electrical Inspector** Energy and Security Richard Bolt Executive Director
3 DOI Annual Report 2004–05 DOI’s Management Committee
Howard Ronaldson Jim Betts Secretary Director, Public Transport
Howard was appointed Secretary of DOI in December 2002. Jim took up his position as the Victorian Government’s He brings vast experience in negotiating complex Director of Public Transport on 8 November 2004. As commercial arrangements between the private sector and Director, he oversees train, tram, bus and taxi operations government and providing strategic policy advice. His early throughout Victoria, and heads up DOI’s Public Transport career included a senior position in a private company. After Division, with a staff of 280 people. Jim has extensive joining the Victorian Government, Howard held executive experience in commercial and policy development, positions in the Department of Innovation, Industry and particularly in public transport, with both the Australian and Regional Development (DIIRD), Department of Premier and UK governments. Cabinet (DPC) and became the Director of Gaming, the Jim graduated from Oxford in 1987 with a BA in Modern Director of Crown Lands and the Director of Housing and History and then from Imperial College, London University in was the Chief Operating Officer of DOI from May until 1988 with a Management Science degree. He worked with December 2002. Prior to this appointment, he was the Chief the UK Government in roles such as Assistant Private Executive and Under Treasurer of the Department of Treasury, Secretary to the Secretary of State for Transport, and Policy ACT. Howard holds the following qualifications: B.Ec., Grad. Adviser in the Railways Directorate. There he advised on the Dip. Accounting and Finance, Monash University and has an privatisation of the UK passenger railways and led the MBA from the University of Melbourne. development of the Government’s railway policy.
Arriving in Victoria in 1998, Jim undertook the role of Director, Dr Alf Smith Transport Reform in the Department of Treasury and Finance Deputy Secretary, Capital (DTF). One of his key roles was developing a communication Alf was appointed Deputy Secretary – Capital, DOI in strategy for the privatisation of the tram and train industry. November 2003. He has direct line responsibility for all In June 2000, Jim undertook the role of Assistant Director in capital projects being developed or under construction within the Project Development and Commercial Division of DTF, DOI. This involves overseeing and coordinating the where he was a senior advisor to government on major rail development of new projects and monitoring the progress of and health projects including RFR and the Austin Hospital projects during delivery. Alf also maintains close liaison with redevelopment. SEITA in its delivery of EastLink. In 2002 as Deputy Director of the Franchise Review Alf was recently Deputy Executive Director, Franchise Review Taskforce, Jim led extensive negotiations with private Task Force, providing policy and commercial advice on the operators within the Victorian rail industry, creating financial public transport franchise agreements and involved in stability and developing pathways for the re-franchising of negotiation with the franchisees. Alf was also responsible for the passenger rail network. In 2003, as Deputy Director of overseeing the administrative and financial functions of the Public Transport, Jim led the negotiation of new franchise Task Force. agreements with Connex and Yarra Trams and the creation Alf became well known throughout DOI while in the role of of Metlink. Chief Executive Officer of Melbourne CityLink Authority and the Director of Melbourne CityLink.
Prior to his work on the CityLink project, Alf spent 12 years working in a range of policy areas in various government departments, including DPC. Prior to this, he was employed in teaching and research at the University of Melbourne, which included economic modelling and forecasting. Alf holds the following qualifications: B.Com. (Hons.), University of Melbourne, Dip. Ed., University of Melbourne, M.A. (Econ.) (Hons.), University of Melbourne and studied at the University of Southampton while completing his PhD in Economics.
DOI’s Management Committee 4 Richard Bolt Prior to his appointment to MPV, James worked in the private Executive Director, Energy and Security sector for more than 10 years with Lend Lease Corporation in a variety of roles. In 1998, he was appointed General Manager Richard has been the Victorian Government’s principal of Bovis Lend Lease for Victoria, South Australia and adviser on energy policy since 2001. His Division’s Tasmania. James has broad experience in the property, project responsibilities include developing energy markets and design and construction fields in a range of sectors including consumer protections, facilitating energy investment and government, commercial, retail, health and industrial. James sustainability, and coordinating the management of security holds the following qualifications: BA. Building, (Melbourne), risks and emergencies across the DOI portfolio. MBA (Australian School of Management). Richard began professional life as an electrical engineer with the State Electricity Commission of Victoria following Dr Graham Edkins undergraduate traineeships with BHP and Mitsubishi. He later Executive Director, Public Transport Safety became a researcher and adviser to various Australian Democrat leaders in the Senate, covering at different times the Graham was appointed to the position of Director, Public portfolios of defence, foreign affairs, energy and resources, Transport Safety (PTS) in May 2003 and has overall environment, communications and industrial relations. responsibility for the safety accreditation and regulation of rail, tram and bus services within the State of Victoria. In addition, Richard joined Victoria’s Office of the Regulator General, now his role provides specialist independent safety advice to the the Essential Services Commission (ESC), in 1995, eventually Secretary of DOI and Minister for Transport. Graham leads the becoming Director of Electricity Regulation. While in that role, PTS group in implementing a more contemporary approach he established service standards and performance to transport safety regulation in Victoria and adding value to monitoring regimes, and managed the development of cost national policy matters on rail safety regulation. benchmarks and service initiatives in distribution price controls. He also played a lead role in the introduction of Graham has extensive expertise in safety management and electricity full retail competition. Richard holds the following accident investigation within both the aviation and rail industries qualifications: B.Eng (Elec), MPPM. with previous roles with Qantas Airways, the Bureau of Air Safety Investigation and within the rail industry. He has provided expert advice to safety regulators, public inquiries and private- James Cain sector organisations in regard to safety management and Executive Director, Major Projects Victoria human factors and has numerous international publications James was appointed to the position of Executive Director, based on his work. His qualifications include a B.Sc., a Masters Major Projects Victoria (MPV) in August 2001. MPV manages Degree in Organisational Psychology (M.Psych) from Curtin large and complex projects crucial to State development and University and a PhD from the University of Otago, applied in nominated by the Premier. It also undertakes project concept the area of transport safety management. development, implementation and delivery for the Victorian Since August 2005, Graham has headed up to the new Government. specialist body, Public Transport Safety Victoria, formerly the Key projects in which MPV is currently involved include: PTS Division.
• Royal Melbourne Showgrounds redevelopment
• Austin Health Redevelopment and Mercy Hospital for Women Relocation project (AR/M)
• Commonwealth Games Athletes’ Village
• Melbourne Convention Centre development
• Australian Synchrotron Project
• Melbourne Recital Centre and MTC Theatre Project
• Melbourne Sports and Aquatic Centre Stage 2.
5 DOI Annual Report 2004–05 Patrick Kelly Bob McDonald Executive Director, Infrastructure Projects Executive Director, Corporate Resources
Pat is an electrical engineer (CPEng) with more than Bob has held the position of Executive Director, Corporate 40 years’ experience in railways and major projects. Resources since December 2002. The Corporate Resources Division brings together all of the major corporate services After qualifying in 1970 with a Diploma in Electrical functions of the department. Engineering, Pat worked in maintenance, design, testing and commissioning, divisional and business management, project Bob’s key areas of responsibility include human resources, management and railway operations. For four years he was communications and public affairs, contracts services and the Public Transport Corporation’s General Manager risk management, information technology services, executive responsible for all train operations in the State and the and legal services, financial management and analysis, management of country road coaches. Pat also completed a corporate systems and processes, including DOI’s web Graduate Diploma in Business Administration. environments, knowledge and information management and DOI’s property management responsibilities. He has held a number of roles with various government and private-sector rail operators, including: design manager, Before being appointed to his present role, Bob held the testing engineer, investigations engineer, business co- position of Chief Financial Officer from April 1997. Bob is a ordinator for the suburban railway, infrastructure director, graduate of Monash University with a Bachelor of Economics project manager and director, rolling stock manager and degree and is a fellow of the Australian Society of Certified general manager operations. Practising Accountants.
Pat’s project experience includes the estimation of the cost of the Melbourne underground loop electric traction systems; Gail Moody preparation of the business case, and subsequent delivery, Executive Director, Capital Planning and Review of the first phase of the Jolimont Decentralisation Project in Gail was appointed to the role of Executive Director of the 1989; contract and bid management in private industry; Capital Planning and Review Division (CPRD) in October 2004. management of projects associated with CityLink; and the The CPRD is a newly-established team responsible for introduction of new Connex rolling stock. reviewing and monitoring DOI’s portfolio of major road, rail, Pat, a fellow of the Institution of Engineers, joined DOI in ports, IT and construction infrastructure projects across the June last year and is the Executive Director, Infrastructure project life cycle. CPRD plays a key role in helping to ensure Projects Division. that project proposals have a sound business case and are accurately scoped and costed, that projects approved for implementation are responsibly managed, are delivered on time and on budget, and achieve their social and economic goals. Risk identification is an important focus of CPRD.
CPRD will also encompass a ‘knowledge centre’ for the development and implementation of best-practice project management and project governance guidelines, methodologies, reporting frameworks, policies and practices, providing intellectual leadership in these areas.
Gail has held senior positions in the public transport area where she was responsible for the delivery of major projects and strategic planning. Gail holds a Bachelor of Civil Engineering degree and Master of Engineering Science (Transport Planning) degree and is a fellow of the Institute of Engineers Australia.
DOI’s Management Committee 6 Chad Pappas • the development of performance measures for the Chief Finance Officer portfolio’s programs and services and evaluation of policy options. Chad has been with DOI for five years and took over as Chief Finance Officer in December 2003. His Corporate John has held senior policy roles in government for Finance team play an enabling role across the DOI portfolio several years. Previous positions include: Executive Director, to ensure high standards of financial management, including Energy, Department of Natural Resources and Environment; compliance with Accounting Standards and government General Manager, Microeconomic Reform and Infrastructure, directions. Chad’s team manages all aspects of DOI’s South Australian Treasury; and Director, Energy Policy, budgeting and financial performance monitoring activities Victorian Treasury. John holds qualifications in economics, and provides financial and business analysis services. It also B.Ec. (Hons.) and M.Ec. delivers transaction services across the Department as well as to a number of DOI agencies on a fee for service basis. John Rogan
Chad has worked across the Victorian Government over Executive Director, Freight, Logistics and Marine the past 10 years, most recently at DPC where he was The freight and logistics sector contributes around 13 per Assistant Director in the Budget Division and prior to that cent of the Victorian Gross State Product. It is the third for the departments of Human Services and Justice. Chad largest industry sector in the State and directly employs worked at a publicity company and a legal firm before his 110,000 people. career in government. John was appointed to the position of Executive Director, Chad is a CPA, with a Bachelor of Economics, a Grad. Dip. Freight, Logistics and Marine in September 2003. The Division Accountancy, and a Grad Dip. Applied Finance and Investment. is responsible for delivering the Government’s policy agenda for the ports, maritime, freight and logistics sectors in John Robinson partnership with other agencies, industry stakeholders and the Executive Director, Planning and Policy community and for the effective management of marine safety.
John was appointed Executive Director of Planning and Key priorities for the Division during 2004–05 were: Policy Division (PPD) in November 2004. This Division is • the development of the relationship and projects with responsible for integrated strategic planning and policy for Pacific National following their acquisition of Freight infrastructure and transport services. In addition to its specific Australia in August 2004 operational responsibilities, the Division has a central role in • the development of the revised rail access legislation facilitating interagency cooperation in strategic planning and maintains close links with a range of agencies including • the publication of the Victorian Ports Strategic Framework VicRoads. • the release of the draft Personal Flotation Devices policy. Priorities that PPD currently oversees include: John has held senior executive roles in the public sector for • the portfolio’s contributions to the Government’s 17 years, in a range of departments including Treasury, Melbourne 2030 strategy Attorney-General’s Office, Planning and Development, Arts, Sport and Tourism, and Infrastructure in Victoria, as well as • confirmation of the portfolio’s major infrastructure Transport in New South Wales. John holds degrees in Arts, investment priorities Law (Hons) and Commerce from the University of Melbourne, • links with the Commonwealth and local government and a Masters degree in Public Administration from • the conduct of regional integrated plans, including Harvard University. modelling/forecasting of future demands and infrastructure priorities
7 DOI Annual Report 2004–05 Randall Straw Frank Tait Executive Director, Multimedia Victoria Executive Director, Regional Fast Rail
Randall was appointed Executive Director, Multimedia Victoria Frank assumed the position of Executive Director – Regional (MMV) in June 2001. On behalf of MMV, Randall is responsible Fast Rail in November 2003. He is responsible for implementing the Government’s information and for delivering the infrastructure component of the project, communication technology policy Connecting Victoria, which comprising four design and construct contracts that, aims to bring the benefits of technology to all Victorians. combined, will modernise 500 km of regional railway and install a fully automatic signalling system. MMV’s core responsibilities include: Frank has extensive experience in the rail freight industry • growing the ICT industry in Victoria and has managed large and complex organisations. • attracting and retaining ICT investments in Victoria He managed V/Line’s freight business and all diesel rail operations within the State and, as General Manager • working with education and training providers and Intermodal at the National Rail Corporation, created a industry to build the State’s ICT skills base new national container freight company involving real-time • increasing community uptake of the internet, in particular technologies and new train operations. He was also for disadvantaged communities Chief Executive Officer of the City of Stonnington, where he restructured the financial and operating performance • delivering strategic whole-of-government ICT and of the council and implemented a cultural change program. telecommunications projects Frank’s undergraduate qualification is in Aeronautical • delivering on the initiatives outlined in Victoria’s Engineering from RMIT. He also completed his MBA at RMIT. Broadband Framework.
Prior to June 2001, Randall was the Director of Government Online and Community Development in MMV and oversaw Victoria’s Government Online and digital divide strategies and programs. He has more than 25 years’ experience in the Victorian public sector, principally in systems and information management planning roles. He has worked in the portfolios of Public Works, Education, Attorney-General’s Office, Treasury and Finance, Premier and Cabinet and State and Regional Development.
DOI’s Management Committee 8 Chief Finance Officer’s Executive Analysis
In 2004-05 DOI’s operating revenue again exceeded DOI also acts as project manager for a number of $3 billion while operating expenditure was $2.8 billion – a major infrastructure projects on behalf of other Victorian reduction of approximately $0.5 billion compared to 2003-04. government departments through MPV, a division within DOI. A change of approximately $0.5 billion would appear to be a These include the Commonwealth Games Athletes’ Village, dramatic turnaround, however 2003-04 contained a number the Australian Synchrotron project, the Melbourne of one-off transactions relating to the new public transport Showgrounds redevelopment, the new Yarra Precinct partnership arrangements that created an ‘unusual’ result. Pedestrian Link and other significant projects. MPV’s The 2004-05 statements reflect a full year financial impact activities are disclosed in Note 4 in the Financial of the arrangements. Statements, and show expenditure and commitments on behalf of the sponsor departments. The related assets and This year’s result more closely reflects the normal operations liabilities are not reflected in DOI’s accounts as these are of DOI and includes government appropriations and other reported in the sponsor departments’ financial statements. revenue received, less the cost of operations that have resulted in an operating surplus of $218 million. The surplus DOI has transferred responsibility for the Station Pier is primarily due to revenue received this year that will be Committee of Management and its related assets (as shown used to pay for commitments entered into for new road and in Note 3(i)) to the Port of Melbourne Corporation. rail infrastructure. Australian Equivalents to International Financial Reporting Looking in more detail at the Statement of Financial Standards (AIFRS) were successfully introduced. The Performance, the majority of DOI’s operating expenditure impact of these changes to the 2004-05 presentation, which is in the provision of public transport and road services. uses the existing Australian generally accepted accounting Approximately $1.3 billion was allocated for rail services principles (AGAAP) approach is disclosed in Note 35. From (train and tram), over $0.5 billion for bus and taxi services 2005-06, DOI’s Financial Statements will be prepared in full and over $0.7 billion for road services. There is a under AIFRS with comparatives. comprehensive breakdown provided in Note 2 in the The Statement of Financial Performance includes revenue Financial Statements on each of DOI’s Output Groups, received by DOI as payments for outputs delivered. The including ICT and Multimedia, Ports and Intermodal delivery of DOI’s outputs is measured against agreed output Gateways and Infrastructure Planning and Policy, along targets and the Treasurer certifies revenue based on the level with the rail and road services already mentioned. of performance. In 2004–05 DOI managed its outputs within DOI’s rail-related capital expenditure for 2004-05 has its available resource limits. predominantly been on the Regional Fast Rail project, The Financial Statements presented later in this Annual Craigieburn Rail project, the Vermont South Tramline Report are prepared in accordance with applicable extension, various projects managed by Connex and Yarra, accounting standards and the Financial Management Act and the Country Train Safety System. These assets are 1994, and strictly relate to the operations of DOI and include: transferred by way of equity (see Note 20: Equity) and are the operations under the body corporate ‘Secretary to DOI’; not reported in DOI’s Statement of Financial Position, as all the Victorian Rail Services Pty. Ltd. which is a company rail infrastructure assets are reported by VicTrack. wholly owned by DOI; and the Director of Public Transport DOI’s contribution to road-related infrastructure is included being an office established by section 8 of the Transport in the operating payments made for road services and via Act 1983. contributed capital (see Note 20[d]) to VicRoads and SEITA. All the other agencies and corporations within the portfolio The related road infrastructure assets and liabilities, prepare their own annual reports (including audited financial consistent with the treatment for rail assets, are reported in statements) and report separately. these agencies’ financial statements.
9 DOI Annual Report 2004–05 Chief Finance Officer’s Executive Analysis (continued)
The following table shows the financial results for DOI over the past six years.
2005 2004 2003 2002 2001 2000 $m $m $m $m $m $m
Operating revenue – appropriations 2801.8 2504.0 2442.5 2406.1 2316.6 2182.1 – other revenue 235.3 540.1 291.1 181.1 135.6 147.1 Total operating revenue 3037.1 3044.1 2733.6 2587.2 2452.2 2329.2 Operating expenses 2818.8 3390.2 2777.3 2531.9 2377.4 2222.7 Operating surplus (deficit) 218.3 (346.1) (43.7) 55.3 74.7 106.5 Total assets 1142.7 1028.7 945.9 927.0 439.2 287.4 Total liabilities 577.7 568.8 237.2 161.1 139.4 91.8 Net assets 565.0 459.9 708.7 765.9 299.8 195.6
As described in this report, the significant movement in the operating result reflects the one-off transactions in 2003–04 relating to the new transport partnership arrangements. Appropriations and expenditure have increased, reflecting increased road and public transport funding. The financial statements included in this report provide detailed information on DOI’s revenue and expenditure.
Chief Finance Officer’s Executive Analysis 10 Public safety and security Public OUTCOME 1:
OUTCOME 1: Public safety and security
Improve safety in the road, public transport, marine and energy sectors and reduce the incidence, severity and cost of accidents; and maintain the security of public infrastructure.
Case study: Dr Michael Bloom
“We’ve been working in this area for over 25 years and our experience of the new Code of Practice for ealthH Assessment of Rail Safety Workers has been very positive. It has a great many advantages for both doctors and workers.” Figure 1 VicRoads’ activities in 2004–05 included:
• developing and adopting a Safe No. of road deaths System framework for road safety 500 444 activities that focuses on ‘safe 407 397 384 roads’, ‘safe vehicles’ and ‘safe 400 343 330 331 total target speeds’, improving road user by 2007 300 behaviour through education, No. training initiatives and law 200 enforcement
100 • completing 80 blackspot projects funded under State and federal 0 blackspot programs 1999 2000 2001 2002 2003 2004 2005 2006 2007 • completing $1.1 million worth Calendar Year of road improvements at Total Metropolitan Regional 12 motorcycle blackspots in consultation with the Victorian Victoria’s metropolitan and regional road toll, by calendar year, since 1999. Motorcycle Advisory Council
Figure 2 • completing a number of ‘safe speeds’ projects including the No. of serious injuries School Speed Zones program, 2000 1833 time-based 40 km/h speed zones 1667 1637 1597 1636 1750 1541 in 15 metropolitan strip shopping 1505 1495 1500 centres and 50 km/h reduced 1214 1143 1119 1093 1138 speed limits in 12 rural and outer 1250 1055 1040 No. 972 1000 metropolitan townships
619 582 750 524 569 504 455 498 • completing nine projects and 385 500 starting 49 under the Government’s 250 $130 million Safer Roads 0 Infrastructure Program Jun Qtr Sept Qtr Dec Qtr Mar Qtr Jun Qtr Sept Qtr Dec Qtr Mar Qtr 03 03 03 04 04 04 04 05 • developing and launching the Quarter Victorian Vehicle Safety Strategy 2004–07 in conjunction with the Total Metropolitan Regional TAC and Victoria Police.
Serious injuries sustained on Victoria’s metropolitan and regional roads since June 2003. For further information regarding arrive alive!, see www.arrivealive.vic.gov.au
13 DOI Annual Report 2004–05 Public transport safety Design or construction was under way One element of the proposed new at another 13 road/rail and 25 pedestrian legislation is the creation of the new Safer railway level crossings crossings position of Chief Investigator, Transport Ensuring railway crossings are safe for and Marine Safety Investigations. The Approval has been given to prepare road, rail and pedestrian traffic is an Chief Investigator will be responsible for further tenders for 16 level crossing and important priority for the Victorian conducting investigations of train, tram, 20 pedestrian crossing upgrades. Government, and ongoing funding has bus and marine incidents.* been committed to a detailed program Improving rail safety regulation Victoria also contributed substantially for upgrading both level and pedestrian Recent rail accidents and subsequent during 2004–05 to a National Transport rail crossings. reviews of rail system safety have Commission initiative to prepare Model The Government currently spends highlighted a pressing need to address National Rail Safety legislation for $3 million annually upgrading road/rail systemwide issues to improve safety adoption by all States and Territories. The crossings throughout Victoria. In the practices and outcomes. development of this national legislation is 2005–06 State Budget, a further expected to be complete by mid-2006. The Victorian Auditor General’s Office $10.8 million was allocated over four released its report in February 2005 into * Consistent with review outcomes that years for the Level Crossing Upgrade regulating operational rail safety, and recommended a more independent public Program. Another $2.83 million transport safety regulator, Public Transport safety concerns also have been raised over the next two years will support Safety Victoria (PTSV) was established in in accident investigation reports in the Pedestrian Rail Crossing Protection August 2005, as a specialist body within DOI. Victoria and interstate, including the Upgrade Program, in addition to Regional rail network inquiries Report of the Independent Commission an existing annual allocation of of Inquiry into the Waterfall Accident in There were nine derailments on the $2.125 million for the four years to New South Wales (NSW). Victorian regional rail network in the first 2005–06. half of 2004. In response, the Director of DOI commissioned an extensive review During 2004–05 , upgrades were PTS set up an inquiry to examine the during 2004 and 2005 into Victoria’s completed at eight road/rail crossings: condition of the network and the current rail safety regulatory regime. adequacy of rail companies’ management • Aerodrome Road, Avenel The review process included the and maintenance practices. • Bank Street, Avenel release of a comprehensive issues paper in July 2004, workshops to The inquiry began in August 2004. • Beechworth-Chiltern Road, Chiltern address industry concerns, and reports A draft final report was provided in December 2004, and in early 2005 the • Frankston-Flinders Road, Hastings to meetings of the Victorian Industry Safety Group. track managers provided comment and • Inverleigh-Winchelsea Road, a management plan to address safety Current experience indicates that better Inverleigh issues. The draft report recommended practices are possible and that a more urgent attention be given to some areas • Railway Street, Inverleigh robust regulatory approach is needed of track, and the Director of PTS took for a diverse and high-risk industry such • Airport Road, Kerang immediate action to close passenger rail as rail, in which serious incidents, • Nagambie-Locksley Road, services on the Bendigo to Echuca line. although rare, may have disastrous Nagambie These services did not resume for the consequences. remainder of the 2004–05 financial year. and five pedestrian crossings: Following its review, DOI prepared a new • Crisp Street, Hampton rail safety regulatory framework for the Critical rail safety measures train and tram networks, which the The 2004–05 State Budget included • Allens Road, Heathmont Government will introduce in the form of $10.6 million for critical safety • Armstrong Road, Heathmont a Rail Safety Bill and associated improvements to rail infrastructure and Transport (Amendment) Bill – Safety systems in response to findings of • Alameda Street, Parkdale Investigation during the Spring 2005 recent rail accident investigations. • Antibes Street, Parkdale. Parliamentary Session.
Public Safety and Security 14 DOI oversaw the planning and Case study: Dr Michael Bloom implementation of these projects, Our medical group performs health assessments for workers from all industries, including: including the rail industry. • the provision of an enhanced (train) We’ve been working in this area for over 25 years and our experience of the new deadman and vigilance operating Code of Practice for Health Assessment of Rail Safety Workers has been very system. Initial planning was completed positive. It has a great many advantages for both doctors and workers. and the improved system will be trialled in the first half of 2005-06 Firstly, it provides a clear structure in terms of how we conduct and record the health assessments. Secondly, if health issues do come to light, it gives us a very • modification of Comeng trains to clear indication of what we need to do about it as health professionals, depending automatically apply park brakes. on the category of worker we are looking at. Trials began in May 2005 and are expected to end in November 2005 Treating someone who is in a safety critical job, such as a train driver, means that you not only have to consider the safety of your patient, but also the safety of • a review of METROL visual everyone else who relies on them being fit to do their job. indications in the metropolitan area was completed and available The health asessments now cover all relevant aspects of workers’ health; options are being assessed psychological as well as physical, which is important. The main aim for safety critical workers is to reduce the incidence of accidents and to ensure the safety of • a review began of the signalling workers on the job and the general public. system, particularly on single-line sections of track with only one signal Men are often reluctant to visit their own doctor to discuss health issues, so protection from oncoming movements. another advantage of these examinations is that male workers receive greater scrutiny and advice about their health. Country Train Safety System The new Code reduces the grey areas and makes the process much more The 2004–05 State Budget provided straightforward. And it empowers us as health professionals to help guide the health funding for the installation of a train of these people and thereby improve their safety and that of the people in their care. protection warning system on the RFR corridors where passenger train services Dr Michael Bloom, will exceed speeds of 130 km/h. The Occupational Physician, Bridge Street Industrial Clinic, Port Melbourne new system will improve rail safety for all V/Line trains through the enforced The project proceeded as a matter of Safety audits observance of signals. urgency with: DOI’s PTS group (now PTSV) is This is being achieved as part of the • trackside equipment progressively responsible for the accreditation of Country Train Safety System project, installed during RFR track upgrade train, tram and bus organisations which is designed to deliver the work throughout Victoria and for regulating additional safety measures required by the implementation of risk management • tenders called for the design, supply, the Director of PTS following serious rail and safety systems. incidents in NSW and Queensland. installation and commissioning of equipment for the V/Line fleet, with During 2004–05, compliance was The project involves: the contract awarded in July 2005. monitored through a system of rigorous audits and inspections and through • fitting Train Protection Warning These works are scheduled to be accident investigations. PTS also System trackside equipment at more completed in time for the start of RFR monitored the degree to which any safety- locations to detect trains travelling at services, which will reach speeds of up related recommendations and corrective excessive speeds or failing to stop to 160 km/h. actions had been implemented by the • installing Train Protection Warning operators. Specialist advice was provided System equipment on the entire V/Line to the Minister for Transport and senior Passenger fleet to communicate with departmental officers on specific safety trackside units and automatically issues and to public transport providers apply a train’s brakes if required. on operational and technical matters.
15 DOI Annual Report 2004–05 Health Assessment Code evaluation Since 2001–02, reported crime against At the close of 2004–05, Connex A revised Code of Practice for Health the person on the Victorian public employed 297 CSOs, in addition to staff Assessment of Rail Safety Workers, transport network (including taxis) has employed at 67 premium stations. This including train drivers, was issued on 1 July fallen by more than 33 per cent. represented a substantial increase in the total number of staff on the network. 2004. The Code of Practice, developed However, public perception of safety in Victoria, has been adopted nationally. and security is still a major factor when As well as staffing 31 (non-premium) In October 2004, PTS conducted an people are deciding whether or not to railway stations during the morning evaluation of the implementation process. use public transport and how peak period, CSOs were present Questionnaires were sent to 38 commercial comfortable they feel when doing so. from 2.30–4.30 pm each weekday at a minimum of 20 stations. Additional accredited rail organisations, major Customer surveys have shown that emphasis was placed on basing contractors, and 103 authorised health some passengers do not feel secure CSOs at stations used by large numbers professionals. Organisations employing while travelling on public transport, of school students. more than 5,000 rail safety workers especially at night. This is particularly the in Victoria participated. Seventy-seven case for travel on trains and at railway From February, Connex introduced a per cent of rail organisations felt that stations and surrounding car parks. new night roster to provide staff on every the Code had increased awareness of train running from 9.00 pm through to DOI has adopted an annual health as a rail safety issue, and 72 per the last train for at least 80 per cent of performance target of achieving no cent thought the Code would contribute each trip. This initiative was in direct deaths and a downward trend in to improved management of rail safety. response to customer perceptions passenger personal safety incidents on about their personal safety on trains At the time of the survey, 2390 health public transport, and continues to make after dark. assessments had been conducted by safety improvements at stations and on the responding rail organisations. public transport vehicles. Yarra Trams introduced 50 more CSOs from April 2004, and CSOs/Authorised Personal safety on trains and trams Increased staff presence Officers are now deployed on the tram The number of deaths and criminal In 2004–05, action was taken to increase system from first to last tram. incidents occurring on the Victorian the visible staff presence on Melbourne’s public transport system each year is rail network. Increased surveillance relatively low. Reported crime on public All new Combino trams are fitted with The new partnership established with transport represents less than 3 per cent internal cameras to help drivers monitor Connex in April 2004 requires a of all reported crime in Victoria. passengers boarding and alighting minimum of 290 Customer Service around door areas. The cameras will also Latest provisional crime statistics from Officers (CSOs) to be employed on the monitor the passenger compartment. Victoria Police show reported crime fell metropolitan train network. CSOs by 15.2 per cent across Victoria’s public provide customer service and All new and refurbished trains have transport network (including taxis) in information; deter and detect fare CCTV, as well as duress alarms in each 2004–05, compared with 2003–04. evasion; and present a physical carriage that alert the train driver when Across the system: presence on trains, station platforms activated. Only six trains on the and at station car parks. metropolitan system now do not have • assaults fell by 14.9 per cent these facilities and it is expected that • robbery was down 36.1 per cent these trains will be phased out of service following the Commonwealth Games • theft of motor vehicles dropped by next year. 14.5 per cent
• property damage fell by 38.0 per cent.
Public Safety and Security 16 Safer pedestrians and cyclists Case Study: Ronald Carroll DOI is implementing programs to I have been boating for the past 15 years and am an avid fisherman. I recently won manage existing road space more this boat in a raffle; until then I had always boated with friends and family. effectively and provide more off-road paths and access, with the aim of Boating safety is important to me, especially when I have my 11-year-old grandson providing safer travel for pedestrians out with me. He’s going to get his boat licence next year when he turns 12; I am and cyclists and increasing the overall conscious of setting a good example when he’s around. number of people walking and cycling. I believe you can’t be too careful when boating. I was once thrown out of a speed Storage facilities for bicycles at activity boat when the boat I was in hit a cross wave. This was a horrifying experience. centres and railway stations were I make my grandson wear his life jacket at all times even though he doesn’t like it. upgraded, with the installation of I believe it is so important to wear a life jacket when you’re under way as you never 250 lockers completed by July 2005 know what might happen out there. (212 at metropolitan railway stations and 38 at regional railway stations). Ronald Carroll, Mornington From April 2005, all bicycle lockers at stations were provided free of charge, Marine safety In May 2004, Marine Safety Victoria (MSV) with a refundable bond. The project engaged Monash University’s Accident was jointly funded by the Victorian Recreational boating fatalities Research Centre to undertake a Government and the federal There were seven recreational boating three-year investigation into a series of Department of the Environment fatalities in 2004–05, arising from six marine safety issues. The work program and Heritage, as part of the Cycle incidents that occurred on Victoria’s includes compiling annual marine Connect initiative. waterways. This is equal to the lowest incident and injury profiles and analysing Another series of bicycle lockers number of fatalities recorded in any year boating injury and hospitalisation data. and cages will be installed during in the past decade (there were seven Boating safety and facilities grants 2005–06 using joint State and federal deaths in each of the years 1997–98 funding granted under the Cycle and 2000–01) (refer Figure 3). The 2004–05 Boating Safety and Facilities Connect initiative. Program allocated $4.73 million in grants to improve boating safety and facilities Figure 3 across Victoria. Fifty-eight groups across the State Summary of marine vessel deaths 1993 – 2005 received funding for nearly 100 projects 14 14 15 aimed at making boating safer and 12 11 11 more accessible for all Victorians. 10 9 10 9 8 The grants program is funded through 7 7 7 licensing fees and vessel registration, 5 with more than $16 million being allocated to recreational boating facilities and safety initiatives since 2002. 0 997 Funding in the 2004–05 Program has 1993/1994 1994/1995 1995/1996 1996/1 1997/1998 1998/1999 1999/2000 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005 been allocated to provide safety 2001–02 inc 2 commercial deaths education and training, purchase 2002–03 inc 1 commercial death Number of deaths Linear (number of deaths) search-and-rescue vessels, navigation aids and boating safety signage, upgrade or build boat ramps and jetties, and to undertake state-wide initiatives.
17 DOI Annual Report 2004–05 Spreading the boating safety A Regulatory Impact Statement, DOI established an expert review of message explaining the regulations in detail, security risk management of the Six Boating Safety Officers were will be released in September 2005. transport sector. The review is identifying appointed to MSV in December 2004. priorities, establishing benchmark Navigation aids and signage works security practices and assessing The officers visit boat ramps and Following the audit of all marine operators against those benchmarks. waterways around the State providing navigational aids and boating safety an interface with boaters on the water. In accordance with the findings of a signage across Victoria in 2003–04, They provide recreational boaters with review of security risk management in MSV began installing new boating safety expert safety advice, conduct vessel the energy sector, DOI has been signage around the State’s waterways. and boat safety equipment checks and working with owners and operators of critical infrastructure to respond to the inspect waterway navigation aids and Marine oil pollution response safety signage. They also conduct review’s recommendations and to MSV manages the Victorian Pollution lectures and seminars on boating safety ensure compliance with the Terrorism Contingency Plan (VicPlan), which for boating and fishing clubs. Community Protection Act 2003. outlines measures that must be taken The Personal Watercraft Courtesy Rider by participating agencies in the event Emergency exercises Program was in operation for its sixth of a marine pollution incident in In partnership with Victoria Police, year over the 2004–05 boating season, Victorian waters. DOI established a committee to review targeting popular jet-ski locations. This MSV received 79 reports of marine and strengthen the management of program aims to reduce the number of pollution incidents during the year, all of transport security risks and incidents and complaints related to the which were managed in accordance emergencies for the Commonwealth use of jet skis by encouraging safe and with VicPlan. Games, and will be participating in a courteous behaviour. major interjurisdictional counter-terrorism exercise in October 2005. Personal flotation device review Energy safety DOI seconded an officer from Victoria In December 2004, the Minister for DOI conducted a review of energy safety Police to assist with the development Transport announced the findings of the regulation, and subsequently combined and conduct of a rolling program of review into the use of personal flotation the roles of the OCEI, the OGS and the emergency response training and devices (PFDs) by recreational boaters. pipeline regulation functions of the exercises for the public transport sector. The review was in response to Department of Primary Industries (DPI) Later in 2005, DOI will conduct a major recommendations made by the State into a new regulator, Energy Safe Victoria. Coroner following the high number of transport security exercise on the Ken Gardner, previously Chief Electrical boating fatalities in Victoria in the City Loop. Inspector, was appointed foundation previous four years. Exercises to manage energy supply Director, Energy Safety. It is intended that any changes to emergencies continued in 2004–05, with PFD regulations will be in place for increased focus on electricity/gas/water Energy and Transport Security the 2005-06 boating season, along interdependencies and protocols for cross-border issues. DOI participated in with the implementation of sections Risk management of critical a major electricity emergency exercise in of the National Standard for Recreational infrastructure Boat Safety Equipment. The introduction October 2004 and a gas emergency Under the auspices of the Terrorism of this Standard, which has been exercise in March 2005. (Community Protection) Act 2003, DOI developed by the National Marine Safety facilitated Cabinet approval of the first DOI progressed the development of Committee and agreed to by all State and declarations of energy and transport business continuity measures to Territory Transport Ministers, will widen the service providers. Approval was sought address the possible unavailability of range of complying PFD standards and under Part 6 of the Act, which imposes a 80 Collins Street during an energy or allow PFDs manufactured to international set of procedural obligations on the transport emergency. standards to be used in Victoria. owners/operators of declared essential service infrastructure in relation to security risk management.
Public Safety and Security 18 management Infrastructure delivery and OUTCOME 2:
OUTCOME 2: Infrastructure delivery and management
Deliver cost-effective investment in, and management of, public infrastructure and major Government projects in Victoria.
Case study: John Weston
“The Library building is unique and very much a part of Victoria’s history. The building certainly has its own personality and is always full of surprises – so many day-to-day unknowns that present constant challenges.” Outcome 2: Infrastructure delivery and management
Through its Building One Victoria A significant proportion of the Considerable progress was made program, the Government is investing Government’s infrastructure during 2004–05 on a large number in major infrastructure projects that will development is being managed by of projects that were either completed, create new jobs, reduce business DOI and its agencies. Major Projects or are due for completion, between costs and open up new opportunities Victoria (MPV), a division of DOI, is now and 2010. Key achievements are for all Victorians. responsible for planning and delivering reported below. Further details about a wide range of large projects, many MPV projects can be found at Projects include the development of of which are being managed on behalf www.majorprojects.vic.gov.au new schools and hospitals; roads and of other State Government client railways; landmark projects such as a VicRoads and VicUrban contribute agencies. In addition to advising the new convention centre and Spencer to the Infrastructure Delivery and Government on complex property Street Station; science and technology Management outcome by delivering development and construction facilities such as the Australian road projects and managing the projects, MPV is allocated projects Synchrotron; ICT infrastructure State’s road network, and managing with requirements that are beyond the projects; and major new cultural and urban development projects, management capabilities of other sporting venues. respectively. Their key achievements agencies. are reported in the Statutory Authorities This investment underpins the The private sector is taking on a section of this report. Government’s GVT policy goals of greater role in providing and operating generating more jobs and industries, infrastructure in Victoria. Partnerships growing and linking the whole of the Victoria (PV) is the Government’s policy State, building cohesive communities, for delivering selected infrastructure and sound financial management. projects through public private It supports the key planning and partnerships. Major PV projects transport policy frameworks outlined currently under construction include in Melbourne 2030 and the MTP. EastLink, Spencer Street Station, and In addition to around $10 billion the Royal Melbourne Showgrounds in major projects that are already redevelopment. complete or under construction, Delivering projects on time, on budget the Government has committed to and to the required scope and quality delivering more than $10 billion worth remains a top priority for DOI. In its of new infrastructure projects over the 2004-07 Corporate Plan, the Department next four years. Planning for several published key performance indicators of these projects, including the (KPIs), including adherence to agreed Melbourne Convention Centre project budget, timeline and scope. development and the relocation of the It also listed target completion dates Melbourne Wholesale Markets, began for almost 40 infrastructure projects. during 2004–05. Many of these projects are not due for completion until 2006 and beyond. A report on performance against these KPIs will be made in the updated 2005–08 Corporate Plan, due to be published later in 2005.
Infrastructure delivery and management 20 Key achievements TRANSPORT INFRASTRUCTURE The major works contractor, Leighton Contractors, announced in mid-2004 that it would not be able to complete ICT INFRASTRUCTURE EastLink Project the project on time or within the Major construction work on Australia’s original budget. This was largely due TPAMS largest urban road project, EastLink, to the inherent difficulties involved in The Telecommunications Purchasing began in March 2005, following the constructing the new station while and Management Strategy (TPAMS) awarding of the Concession to maintaining the site as an operational was established to provide a strategic ConnectEast in October. framework for the procurement and transport interchange. However, the The Southern and Eastern Integrated management of telecommunications Government was able to provide the Transport Authority (SEITA), which has services across the whole of the contractor with additional site access been established to manage the project Victorian Government. This is one of to assist the construction program. and the Concession Deed, achieved a the largest network upgrades in The construction delays and budget timely financial close for the project in Australia, comprising: issues are not risks for which the State is November. • up to 4,000 sites for data transfer liable, because the Partnerships Victoria The 45 km of new freeway between contract entered into with Civic Nexus • 40,000 voice circuits Ringwood and Frankston will feature provides protection for the Government • 25,000 mobile services 17 interchanges, two major bypasses at against substantial cost overruns. Ringwood and Dandenong, the State’s This landmark Partnerships Victoria • 21,000 managed telephony ends largest ever bridge construction project is delivering a world class (Victorian Office Telephony Service – program, two 1.6 km long tunnels under transport interchange that will cater for VOTS). the Mullum Mullum Valley, and the latest up to 30,000 people an hour – four electronic tolling system. All major TPAMS contracts were executed times the present volume. This equates during 2004–05. These will result in lower Further details about SEITA’s to an annual usage of 60 million people costs in the order of $200 million over the achievements during 2004–05 are per year, which is the predicted number next five years. reported in the Statutory Authorities of station users by 2035. The project is TPAMS has also secured more than section of this report. generating 4000 jobs in construction $100 million worth of infrastructure and the subsequent operation of the (mobile, DSL and fibre) to be delivered Redeveloping Spencer Street station and related facilities. across the State. Station The new interchange is expected to be During the 2004–05 period: The distinctive wave-form roof of the substantially finished in early 2006. By new Spencer Street Station complex the end of 2005, and in time for the • transition from the StateNet took shape dramatically during Commonwealth Games, it is anticipated arrangement to the new VOTS 2004–05 and reflected the progress that the public will be able to use what arrangement was completed being achieved on the project. will be known as the new Southern Cross • the contracts for the Station with minimal or no disruption. Key milestones included opening the Telecommunications Carriage new Collins Street Concourse passenger Further detail about progress achieved Services (TCS) were executed area and closing the 80-year-old station during 2004–05 is provided in the • transition to new voice, mobile and subway. A strong emphasis was placed Spencer Street Station Authority’s data services suppliers commenced. on customer service, with more customer contribution to the Statutory Authorities service staff working on the project than section of this report. For more information, see ever before to help passengers find their www.mmv.vic.gov.au/tpams way around the station during the intensive redevelopment period.
Above left: The innovative wave shaped roof of the redeveloped Spencer Street Station was erected during the year, covering 37,000 m2 and containing 3,200 tonnes of structural steel. Above right: Major construction work on the Eastlink project began in March 2005. Construction expenditure is expected to reach $100 million per month when the works program is at its peak.
21 DOI Annual Report 2004–05 Flinders Street Station concourse Case study: Des Phelan Major works to upgrade the concourse I first went to the Austin Hospital for a scan in November last year before it moved. I at Flinders Street Station began in early got a bit lost and ended up near where the rubbish bins are, so that didn’t give me 2005 and are due to be completed a very good impression of the place. by early 2006. The Government has allocated $15.5 million toward the A couple of months later I was told I had to be admitted to hospital for an project, which will extend the life of operation. My experience of other Melbourne hospitals was that they were a bit the concourse by up to 50 years. impersonal and I was a bit apprehensive about going to the Austin.
The Station concourse was built to When I was admitted, there weren’t any single rooms available so I was put in a exacting engineering standards in 1906, four-bed ward. But even though there were others in the room, it was roomy but the supporting infrastructure under enough and you weren’t in the next person’s pocket, so it was good. the concourse needed to be I didn’t feel enclosed in the Austin. It was bright and you didn’t have to go very far strengthened to meet the needs of the to get a good view. twenty-first century and to enable future development at the station. Everything about the new hospital was magnificent. The building was great and the nurses and doctors were excellent – I can’t speak highly enough of them. Even The upgrade involves: though the nurses were really busy, they still took the time to stop and talk to you.
• cleaning, waterproofing, reinforcing Although I was not hospitalised in the old hospital – you couldn’t compare them. and painting the concrete slab on The old one was ready for the bulldozer. Even though I was sick, I found everything which the concourse sits about the new hospital was inviting and made me feel better about my stay.
• cleaning, repairing and painting the Des Phelan, Stawell original riveted steel beams
• strengthening and painting cast iron DELIVERING INFRASTRUCTURE to provide specialist and general columns and replacing a small ACROSS GOVERNMENT obstetric and gynaecology services to number that were removed Melbourne’s north-east.
• upgrading the stormwater drainage Transforming public health This project is the biggest single system and improving the join facilities investment in health the north-east between the concourse and the Victoria’s two newest public hospital suburbs has ever received. Project adjacent Swanston Street/Princes buildings – the co-located Austin delivery is managed by MPV, and the Bridge roadway. Hospital and the Mercy Hospital for client department is DHS. More than Women – opened in May 2005, following 700 people were directly employed at DOI’s delivery of Victoria’s largest ever the redevelopment site during the peak hospital redevelopment project, on time of construction. and on budget. In March 2005, work began on a The Austin Health Redevelopment and 55-bed, purpose-built mental health Mercy Hospital for Women Relocation facility at the Austin Hospital. The new (AR/M project) brought together two major $17 million Adult Acute Inpatient Unit Victorian hospitals on one site, providing and Specialist Mental Health Services an improved and expanded range of facility is part of the overall acute and specialist health services. redevelopment project.
The $376 million project transformed the The remaining sections of the project existing Austin Health facilities and involve the refurbishment of a number relocated the Mercy Hospital for Women of existing Austin Hospital buildings.
Infrastructure delivery and management 22 West Gate Bridge Memorial Park The Australian Synchrotron will be a major Royal Melbourne Showgrounds The West Gate Memorial Park new tool for groundbreaking scientific and The Royal Melbourne Showgrounds are commemorates the lives of 35 men industrial research. It will help scientists in being redeveloped in a joint venture who died when a section of the bridge a range of fields, including biotechnology arrangement between the State and the collapsed in 1970. Sixty-eight men were and drug design, medical research and Royal Agricultural Society of Victoria. working on a 2000 tonne steel bridge diagnosis, advanced manufacturing, and The Government is providing $108 span when it fell 60 metres to the minerals technology. million for the project under a joint ground without warning. The new Work on the Australian Synchrotron in venture with the Royal Agricultural memorial features 35 sculptural pillars Clayton continued on schedule and on Society of Victoria. representing the lives lost. The memorial budget during 2004–05, with the $206 Redevelopment plans for the historic to the lives lost in Australia’s worst million facility on schedule to be handed Royal Melbourne Showgrounds were industrial accident was opened in over to the operator in April 2007. unveiled in December 2004. PPP Spotswood, under the West Gate MPV is delivering the Synchrotron, with Solutions, a consortium comprising Bridge, in October 2004. the client agency, DIIRD, providing the financier Babcock and Brown, MPV managed the development of the $157.2 million Government funding Multiplex Constructions, Multiplex $1 million Memorial Park, which was contribution. Facilities Management and Daryl jointly funded by WorkCover, Parks Jackson Architects, were selected to In mid-2004, the Auditor-General Victoria, VicRoads and the Bracks undertake the project. released a highly positive report on the Government’s Community Support project, assessing it to be well-managed, The winning design respects the Fund. The Government worked with supported by a comprehensive business traditions and heritage of the the West Gate Bridge Memorial Park case, and with excellent risk management Showgrounds, incorporating new Association – a community based group strategies. buildings that are in keeping with representing families and friends of existing infrastructure, restoring many those who died – and several other Milestone achievements have included: of the historic buildings, and creating stakeholders, to deliver the project. • the awarding of all major contracts adaptable facilities for staging the Since opening, the Memorial Park has for the synchrotron machine by Show and other events in the future. received a design award in a national 1 July 2004 Construction began in early 2005 and competition for excellence in the use • completion in late 2004 of an several facilities were completed for the of concrete and cement, run by peak electricity substation to power the 2005 Royal Melbourne Show, including: industry body Cement Concrete facility. The substation can deliver Aggregates Australia. • a fully restored Centenary Hall – the around 12 megawatts of electricity – new home for the animal nursery enough to light a small suburb or Australian Synchrotron Project the equivalent of six Melbourne • the refurbished heritage A synchrotron is a powerful machine Cricket Grounds Agricultural Hall that circulates electrons travelling at • completion of the synchrotron • the renovated Royal Block nearly the speed of light. It produces building in February 2005. intense beams of light a million times • a brand new wood chop pavilion brighter than sunlight to probe the Installation of the accelerator systems, and wood store physical structure of materials down sub-systems and components • an extended and relocated show to the level of atoms and molecules. continued satisfactorily during the bags pavilion. remainder of the year, in line with the key milestone date for commissioning The redevelopment is on track to be the storage ring from June 2006. completed in time for the 2006 Show.
Above left: The Australian Synchrotron building in Clayton was completed on time and on budget in February 2005. Above right: Centenary Hall was restored and ready for use as the new home for the animal nursery at the 2005 Royal Melbourne Show.
23 DOI Annual Report 2004–05 Case study: John Weston State Library of Victoria The State Library is listed as one of the I’ve been involved with the State Library building for over 25 years, initially as the world’s 1,000 most significant buildings director of the Public Works Department day labour gang that maintained it, and of the twentieth century. When the major then as the Director of the international design competitions to redevelop the library redevelopment project began in 1988, it and the adjacent Queen Victoria site. Since 1988 I’ve been project director for the was anticipated that the works program current redevelopment project. would be completed by 1997. However, None of the major projects I’ve worked on has been easy, but an existing site – the delayed departure of Museum and particularly a site as old as this one with buildings of various ages – is always Victoria to its new premises in Carlton going to be more difficult. and the unexpected need to temporarily The Library building is unique and very much a part of Victoria’s history. The building house the National Gallery of Victoria on certainly has its own personality and is always full of surprises – so many day-to-day the site between 1998-2002, resulted in unknowns that present constant challenges. Drawings showing a suspended floor a significant extension to the timing of when it’s actually barely-reinforced concrete on rubble, or plaster walls where the Library redevelopment. asbestos had been used as a binder (one of only two known examples in Australia) Restoration of one of Victoria’s most – removing that delayed the project for more than a year and increased costs. significant cultural icons, the State A building of such international importance needed to be handled sensitively and Library of Victoria, entered its sixth with respect. The architects have done a superb job of preserving the significance phase during 2004–05 with the letting of the place with a very sophisticated and ageless design rather than a bold of a construction management contract architectural statement that would compete with the original. to Hansen Yuncken Pty Ltd.
While the project team won’t receive the same recognition as they would for a new Tenders for the construction component project, there is a great deal of satisfaction for all of us that this project has ensured of the redevelopment project’s $32 that this internationally significant building will go on serving the people million Stage 6 were called in of Victoria for another hundred years, true to its original design and function. September 2004 and the contract was let in January 2005. Construction began in March and is expected to be John Weston completed in the second half of 2006. Project Director, State Library of Victoria redevelopment Stage 6 involves the creation of a new public restaurant, a library shop, an improved entrance foyer and staff, visitor and members’ facilities.
Subject to funding approvals, one further stage of work remains. The seventh and final stage will include historically significant Queens Hall and general renovation works to the south- west corner of the complex. If approved, this final stage of work will be documented in 2006, with construction planned for completion in 2008.
Above right: The interior of the restored Dome building in the State Library of Victoria.
Infrastructure delivery and management 24 Flinders Street overpass/former Melbourne Convention Centre Melbourne Wholesale Markets Fish Market site In its Victoria: Leading the Way economic The Premier announced in May 2005 One of Melbourne’s worst eyesores, statement in April 2004, the Government that the Melbourne Wholesale Fruit and the Flinders Street overpass, was under announced plans for a new, world class Vegetable Markets would move from demolition at the end of the financial year convention centre to be built on the Footscray Road to Epping in 2010. The as part of broader plans to revitalise the banks of the Yarra River, adjacent and current markets were built in 1969, when south-western corner of the CBD, on the connected to the existing Melbourne a few hundred businesses operated at north bank of the Yarra River. Exhibition Centre. the site. They are now home to 2,700 registered business users, employing The removal of the overpass is the first The new convention centre will around 7,000 people, therefore requiring stage in the revitalisation of the north accommodate 5,000 delegates and more space. bank, based around the redevelopment include additional features such as of the former fish market site. The meeting rooms, a ballroom and large- The 2005-06 State Budget allocated redevelopment project by the private scale catering facilities. The project is $300 million to fund the relocation and sector includes the extension of the being undertaken in partnership with the redevelopment. MPV coordinated the Melbourne Aquarium and a $170 million City of Melbourne and will be delivered business case and land acquisition of commercial and retail development of as a Partnerships Victoria project. the 130-hectare site in Cooper Street, the old market site. Epping, which was chosen because of Four outstanding conferences have its proximity to the Hume Highway, other The overpass structure was on already been secured for the new centre arterial road links, Melbourne Airport and schedule to be completely removed by bringing a total of 11,000 delegates to the intermodal rail link in Somerton. mid-August 2005, and the new four-lane Melbourne and providing economic About 75 per cent of the transport intersection of Flinders and King Streets, benefits valued at $61 million for the delivering produce to the existing together with improved tram stops Victorian economy. markets is already arriving from the north. between Spencer and Market streets, A Request for Proposal was released are scheduled to be open for traffic The project is being overseen by the in April 2005, inviting three competing and trams in mid-December 2005. Department of Primary Industries (DPI), consortia to submit proposals for the in conjunction with the Melbourne Market Design work for the 2,500m2 extension development of the new Melbourne Authority. Once a masterplan is to the Melbourne Aquarium, which is Convention Centre. A decision on a final developed for the relocation, the operated by Oceanis Holdings, was proposal and successful consortium is Government will call for Expressions of well advanced by June. Construction due by the end of 2005. Interest from the private sector to deliver is expected to begin in early-2006 after Work is due to begin following the the project. the new intersection of Flinders and Commonwealth Games in 2006, with King streets is completed. The extended the new venue to be complete by the Melbourne Aquarium is expected to end of 2008. open in 2007.
The Government and the City of Melbourne are working in partnership on the project, with the Government, through VicRoads, assuming responsibility for removal of the overpass and establishing the new intersection.
Above: Demolition work was under way on the Flinders Street overpass at the end of 2004-05. Removing the overpass is part of broader plans to redevelop the south-western corner of the CBD.
25 DOI Annual Report 2004–05 Melbourne Recital Centre and Managing industrial waste A series of ‘existing conditions studies’ MTC Theatre project Establishing new world-class prescribed were completed and released during the The Melbourne Recital Centre and the industrial waste facilities, including a soil year, including: MTC Theatre project will put in place recycling facility and a long-term • Site Condition Report – key infrastructure that enhances and containment facility, is essential to the Hydrogeology further cements Melbourne’s reputation delivery of the Government’s Industrial • Traffic and Transport Report as Australia’s arts and cultural capital. Waste Management Policy and ending the unsustainable practice of disposing • Archaeological and Cultural The project includes four new arts of these wastes in landfill. Heritage Investigation spaces: Selecting suitable sites for such facilities • Surveys for Mallee Emu-Wren and • the 1,000 seat Dame Elisabeth has been a complex and sensitive Greater Longeared Bat Murdoch Hall, a world class recital process, and is being coordinated hall for chamber music • Invertebrates – Existing Conditions by MPV in consultation with key • a 150-seat salon for more intimate stakeholders, including the Department A Technical Information Report outlining musical performances of Sustainability and Environment (DSE) the design, construction and operation and the Environment Protection of the containment facility was due to • a 500-seat theatre for the Melbourne Authority (EPA). be released for community comment on Theatre Company (MTC) 1 July 2005. • a rehearsal studio and home-base Soil recycling facility An Environment Effects Statement (EES) for the MTC. After a number of proposals were is being conducted to fully examine the publicly reviewed, Gippsland Water was The two buildings will be constructed as Nowingi site and determine its suitability. accepted as the preferred proponent a single complex, however each venue If the site is found to be suitable, the to establish a soil recycling facility at will have its own distinct identity. They facility could be operational by early 2007. will be built on land currently owned by Dutson Downs. Before the development can proceed, the University of Melbourne, adjacent Gippsland Water was preparing to lodge the facility must meet EPA requirements to the Victorian College of the Arts. its application with the EPA early in July that demand the safe containment of 2005 to construct a world’s best practice Two construction companies have waste with the aim of ensuring that no soil and organics recycling facility. The been short-listed for the final phase emissions are released into the air, land proposed waste management complex of the Head Contractor Tender process or water. to construct the new Recital Centre would use a range of recycling and Once established, the containment and Theatre at Southbank. Construction treatment technologies for soils from a facility will manage solid prescribed work on the two venues, designed by variety of sites, including petrol stations, industrial wastes that cannot otherwise Melbourne architects Ashton Raggatt former gasworks and industrial sites. be avoided, reused or recycled. Known and McDougall, is expected to start as Category B prescribed industrial early in 2006 and to be completed Long-term containment facility wastes, these substances are created in 2008. A rigorous social, economic and during the manufacture of everyday environmental assessment is being products such as cars, clothing, made of the potential impact of whitegoods, plastics, paints and farm establishing Victoria’s first industrial chemicals. waste containment facility at the Government’s preferred site in the State’s north-west.
The site, on unreserved Crown land near Nowingi, between Ouyen and Mildura, has large, in-built buffers and no people living close by.
Infrastructure delivery and management 26 Bonegilla Migrant Experience The first six completed homes in the Melbourne Sports and Aquatic Heritage Park Games Village were officially opened in Centre Stage 2 Located on the shores of Lake Hume, October 2004 and by June 2005 around The upgrade of the Melbourne Sports near Wodonga, the Bonegilla Migrant half of the detached houses were at and Aquatic Centre in readiness for the Reception Centre was Australia’s lockup stage. Commonwealth Games continued largest migrant reception facility. All precincts were under construction during 2004–05, with the main works Between 1947 and 1971 it was home during the year. The structural expected to be substantially complete to more than 320,000 migrants from restoration of 11 buildings in the by October 2005. more than 30 countries. heritage precinct was completed and The centrepiece of the upgrade is a The last remaining residential block, internal refurbishment under way. The 50-metre permanently-roofed outdoor Block 19, has been transformed into the structural work for the social housing competition pool with a permanent commemorative centre. It is one of only buildings was completed and internal fit- 3,000-seat grandstand. Other elements two remaining World War II army camps out began. The manufacture and of the upgrade include: used for migrant accommodation in installation of the temporary • improved hydrotherapy facilities Australia and is on the Victorian accommodation units was progressing. Heritage Register. Facilities specific to the operation of • better public transport access The redeveloped facility also includes a the Athletes’ Village, including a huge • a multi-storey car park café, car park and natural landscaping, dining tent, a retail precinct and a • establishment of the School of Sport and will be known as the Bonegilla transport interchange mall, were also and Recreation Management. Migrant Experience Heritage Park. taking shape. Construction of the commemorative The development, including 155 detached The project is the responsibility of the centre was completed during 2004 and houses, 28 townhouses, 103 apartments Minister for the Commonwealth Games. is due to open December 2005. and approximately 115 relocatable MPV is managing the planning, design accommodation units, is on schedule to and construction processes on behalf of DVC. COMMONWEALTH GAMES be handed over in December 2005. FACILITIES The development of the Athletes’ Village falls under the responsibility Yarra Precinct Pedestrian Link Athletes’ Village of the Minister for the Commonwealth The $30.7 million Yarra Precinct Major progress was achieved on the Games. MPV is managing the design, Pedestrian Link project is being construction of the 2006 Commonwealth documentation, tendering and delivered by MPV on behalf of DVC in Games Athletes’ Village, which is being construction processes on behalf preparation for the Games. The 525 built on a 20-hectare site in Parkville. of DVC. metre long walkway, stretching from The low-rise medium-density Village will Birrarung Marr to the Melbourne be home to about 6,000 athletes and Cricket Ground, will make it easier and officials from 71 nations. After the safer for thousands of pedestrians Games, the long-term residential project moving between the major sporting will form a new inner-city suburb called venues and cultural events at Parkville Gardens. It will feature up to Federation Square and other parts of 1,000 new homes (free standing, the CBD. Construction began in townhouses and apartments), an September 2004 and is on schedule to additional four hectares of parkland, be completed by the end of 2005. and 200 social housing dwellings.
Above left: Visitors to the new Bonegilla Migrant Experience Heritage Park are flanked by a 30-metre graphic screen, which displays an iconic photograph of Dutch migrants. Above centre: The low-rise, medium-density Village under construction in Parkville will be home to around 6,000 athletes and officials from 71 nations during the 2006 Commonwealth Games. Above right: Construction work on Stage 2 of the Melbourne Sports and Aquatic Centre in Albert Park affords stunning views across the city skyline.
27 DOI Annual Report 2004–05 URBAN DEVELOPMENT IMPROVING PROJECT PLANNING AND DELIVERY Beacon Cove Stage 2 Significant changes were made within A Beacon Cove Precinct Committee was DOI during 2004–05 to strengthen its established in late 2004 to develop capacity to develop and deliver the options for the future of nearby Princes capital infrastructure program. The Pier, including residential development Capital Planning and Review Division and construction of a public beach. was established and is responsible for overseeing the review, monitoring and Mirvac began construction of the second reporting of DOI's capital program. The stage of the residential development, Division reports to the Deputy Secretary- comprising 99 apartments and nine Capital and also prepares reports on the beachfront town houses. Work Department's capital program for other progressed well and the development is Government agencies and Ministers. on target for completion in 2006. A marketing and sales program for the new Experience in delivering major rail dwellings was successfully implemented, projects over recent years has provided with all properties expected to be settled a number of important lessons about the by the end of 2005. management of transport infrastructure projects in a privatised environment and Construction also began on the this added capability was reflected in a associated $3 million public beach, new structure adopted by the incorporating a public promenade and Infrastructure Projects Division. The new extensively landscaped foreshore areas. structure provides for continuous core Around 120,000 tonnes of new sand will expertise in the definition and control of transform the area between Princes Pier projects as well as dedicated delivery and the existing Sandridge Beach. teams for individual projects. The Committee’s final report is due to be presented to the Minister for Planning in September 2005.
ASSET MANAGEMENT An independent engineering review of the metropolitan rail network was conducted in 2005. Preliminary findings indicate that the Melbourne network is well maintained and the condition is fit for its current purpose. Improvements recommended by the report will be adopted by DOI and Connex/Mainco and will lead to an improvement in the operational performance of the network.
Infrastructure delivery and management 28 Access and mobility OUTCOME 3:
OUTCOME 3: Access and mobility
Plan and deliver a sustainable public transport system and road network that improves people’s mobility and access to services while managing the externalities of travel demand.
Case study: Dennis Ma
“The new tram extension to Vermont South has really made a difference to my daily travelling.” Outcome 3: Access and mobility
The reach and reliability of Victoria’s Major infrastructure upgrade projects eight drivers graduated in 2004–05. public transport system and road currently under way, such as the RFR Seventy-nine trainee drivers are currently network are essential requirements for a projects and the redevelopment of in training, of whom 41 are expected well-connected and mobile population. Spencer Street Station, will substantially to qualify to drive by December 2005. improve the access and mobility of An additional 63 drivers will commence This outcome supports a range of Victorians living in and outside the training during the second half of 2005. the Government’s Growing Victoria metropolitan area. These projects are Connex is continuing to improve fleet Together priorities, including, growing reported in other sections of this report reliability and availability by modifying and linking all of Victoria; more quality (RFR – Outcome 5, Spencer Street Comeng trains to operate over the jobs and thriving, innovative industries Station – Outcome 2). entire network. across Victoria. It reports on several of the projects under way as part of the VicRoads makes a significant Connex is still experiencing high levels $5 billion Linking Victoria program – the contribution to this Outcome by of late running, with more than 6 per biggest transport program in Victoria’s continuing to develop and manage cent of services running late in 2004–05. history. the State’s road network. VicRoads’ The network is operating more services key achievements for 2004–05 are and carrying more passengers than The Government has set an aspirational summarised in the Statutory Authorities ever before, making it harder to recover target that, by the year 2020, 20 per cent its activities is available in VicRoads’ when faults occur. This situation has of motorised trips in Melbourne will take 2004–05 Annual Report or at been exacerbated by the operational place on public transport (compared www.vicroads.vic.gov.au constraints imposed during construction with 11 per cent in 2002). Strategies work at Flinders Street and Spencer outlined in the MTP lay the foundation Information about initiatives specifically Street stations. for future progress towards this long- aimed to improve access and mobility term target. for people living in country Victoria is Despite the problems Connex has reported under Outcome 5: Rural and experienced, the level of disruption to In addition to working towards this Regional Development. passengers is around 4 per cent better long-term goal, DOI aims to achieve than it was under the management of continuous improvement in the the Public Transport Corporation (PTC) reliability and punctuality of trains, Key achievements in 1998. trams and buses. Public transport performance Reports in this Outcome section focus Trams on the overall performance of the State’s Metropolitan trains Service delivery by Yarra Trams over public transport system; initiatives that 2004–05 has been consistent, with The delivery of metropolitan train services were implemented to improve access cancellations at around only 0.6 per cent in 2004–05 was adversely affected by and reliability; reforms to the taxi of scheduled services. Punctuality driver shortages and reliability problems industry; and initiatives designed to improved during the year, with an average with new rolling stock, and by a severe improve transport access for people of 82 per cent of services running on time storm in February 2005 that caused with special needs and during major across the network and an average ‘at delays and cancellations for several events and celebrations. destination’ result of 69.5 per cent. days. Operational performance was Several factors, outlined in the following disappointing, with an average of Measured in terms of total passenger report, combined during 2004–05 to 1.3 per cent of scheduled services weighted minutes of delay, Yarra Trams’ adversely affect the performance of cancelled (compared with 0.5 per cent performance has consistently been some metropolitan and regional train services. of services cancelled in 2002–03). 33 per cent better than under the PTC Steps were taken to alleviate the impact Performance improved in late 2004 and in 1998. This good level of performance of these issues and, as a result, the early 2005, largely as a result of has been achieved during a period of performance of the metropolitan measures to counter driver shortages. significant change throughout the tram network improved markedly in the network, including increasing volumes The Government, Connex and the Rail, second half of 2004–05. of car traffic, route amalgamations and Tram and Bus Union (RTBU) implemented extensions to existing services. a number of initiatives to address the problem of driver shortages. Thirty-
Access and mobility 30 Metropolitan bus services Connex and Yarra Trams have factors over the year, including Metropolitan bus services have demonstrated their ongoing increased fare compliance activity and maintained levels of performance commitment to improving customer changes in ticket type. Growth in train consistent with previous years. An service standards with the launch of and tram patronage was strong in the average of 93.5 per cent of services were new Customer Service Charters on 1 last few months of the 2004–05 financial on time, and fewer than 1 per cent of June 2005. They introduce a suite of year compared to patterns in prior services were cancelled over the year. enhanced customer service targets, years. including changing the customer Fare box growth is lower than overall compensation thresholds. V/Line Passenger trains patronage growth due to changes in Over the past 12 months, V/Line Connex raised the compensation yield per trip, for example passengers Passenger’s (V/Line) performance has threshold from 95 per cent to 98 per are purchasing more high-value tickets been adversely affected by RFR works cent, effective from 1 July 2005. Both such as daily five pack or monthly and by the major works under way at Connex and Yarra Trams have tickets in place of short-term tickets. Spencer Street Station, which often introduced a two-tier threshold For regional rail, there was a decline in severely reduced the availability of arrangement for passenger patronage of 6.7 per cent from 2003–04 platforms. Speed restrictions were placed compensation. Customer compensation to 2004–05. This was largely due to the on the North East, Eastern and Southern continues to be calculated on a system- service disruption resulting from work corridors due to track condition; speed wide basis for both operators. No on major projects such as the Spencer restrictions associated with RFR projects; change has been made to the V/Line Street Station Redevelopment and the and Connex network delays, especially in passenger compensation code. impact of temporary line closures through the Eastern corridor, have also impacted the RFR project. As these projects near adversely on operational performance. Patronage completion and regional passengers The percentage of V/Line services Patronage estimates for the three are provided with an improved service, operated on time fell from 91.5 per cent metropolitan transport modes are patronage is expected to increase to 85.1 per cent during 2004–05. based on a new and improved again in 2005–06. Patronage on measurement methodology for regional buses – made up of patronage While punctuality has been poor, 2004–05. This methodology involves on country and urban, marketed and V/Line’s ability to deliver services is still factoring up ticket validations from the school bus services – declined slightly reasonable, with only 0.9 per cent of Automatic Ticketing System database (-1.5 per cent) in 2004–05. services cancelled. While punctuality with a ‘validation rate’ obtained from is important, reliability is valued highly surveys to obtain an estimate of Customer satisfaction by V/Line customers because of the patronage for each mode. This change The Director of Public Transport significant impact on passengers if in methodology means a step-change commissions monthly customer services are cancelled. in patronage estimates from 2003–04 satisfaction surveys to measure whether to 2004–05 and this needs to be operators are providing the quality of Compensating passengers considered when comparing estimates service customers expect. A sample In February 2005, a severe storm resulted across years. of people is randomly selected from in significant disruption to public transport Patronage growth from 2003–04 to electronic telephone directories in services throughout Melbourne. As a 2004–05 is estimated to be 2.5 per cent areas where train, tram, bus and coach result Connex, Yarra and V/Line trains all for metropolitan public transport overall services operate. Metropolitan taxis paid compensation to passengers for (train: 4 per cent; tram: 2 per cent; and were added to the regular monthly failing to meet the threshold levels of bus: stable). This estimate of patronage surveys in the June quarter 2005. performance specified in their Customer growth is based on a number of related Service Charters. This was the only time indicators, for example fare box growth Connex and Yarra were required to (of around 0.4 per cent, deflated for fare compensate passengers during the increases), passenger count data and year. V/Line was required to provide ticketing analysis. Ticket validations compensation throughout 2004–05. have been impacted by a number of
31 DOI Annual Report 2004–05 Interviewees are asked to indicate their Public transport ticketing 1 January 2005. The annual fee for the usual public transport usage and state tertiary student concession card was System reliability and fare box their satisfaction level on specific reduced significantly, from $87.00 to aspects of public transport as well as Melbourne’s Automatic Ticketing System $8.00, to match that used by secondary the service overall. These responses performed well during the year with students – reducing fares for 39,000 are given a score of between 0 and 100 Customer Defined Availability of ticket Victorian tertiary students. The new according to the following scale: vending machines at railway stations arrangements ensure discount travel is exceeding contractual targets. Vending available to people in the community Totally satisfied 100 and validating machines on buses also who most need it. Very satisfied 80 performed well. Equipment on trams Somewhat satisfied 60 showed room for improvement and The Sunday Saver ticket was introduced Somewhat dissatisfied 40 Yarra Trams is working with Metlink and in April 2005, providing unlimited travel Very dissatisfied 20 OneLink on measures to better identify across Zones 1, 2 and 3 on Sundays for Totally dissatisfied 0 and respond to malfunctions. just $2.50. More than 500,000 tickets were sold in the first 20 weeks of operation. Overall customer satisfaction for Metropolitan farebox revenue for metropolitan (train, tram, bus and taxi) 2004–05 grossed $440.5 million: The new ticket is designed to boost and regional (train and coach) public up 0.4 per cent on the previous year, patronage on a day when surplus transport remains in the range taking into account fare increases capacity is generally available. The 'somewhat satisfied' to 'very satisfied' introduced on 1 January 2005. Sunday Saver is especially useful for (see table below). There was a families wanting to visit Melbourne’s significant decrease in customer Concessions and extensions attractions on Sundays. satisfaction from 2003–04 to 2004–05 New ticketing initiatives introduced Also in April, for the first time, the for metropolitan trains and V/Line, during the year made public transport a Government extended free travel on corresponding to poor service more attractive option for more people. Anzac Day to war widows in addition to performance for both modes, as veterans. The decision made free travel outlined above. Overall satisfaction Around 230,000 additional Victorian from 24 to 26 April available to 28,000 with metropolitan trams and buses Health Care Card holders became war widows in Victoria. remained stable. eligible for concession travel from
Table 1 Public Transport Customer Satisfaction Monitor results for 2004–05
Mode 2003–04 2004–05 Survey question Metropolitan train 68.8 65.4 Overall,are you satisfied or dissatisfied with the train service on your line? Metropolitan tram 70.6 71.2 Overall, are you satisfied or dissatisfied with the tram service on your line? Metropolitan bus 70.7 69.2 Overall, are you satisfied or dissatisfied with the service on your bus route? V/Line services overall 75.4 70.5 Overall, are you satisfied or dissatisfied with V/Line train and coach services? Taxi (*April to June N/A 64.1* Overall, are you satisfied or dissatisfied with Melbourne’s taxi services? quarter 2005 only)
Access and mobility 32 New ticketing solution Case study: Peter Hall Victoria moved closer to a single, The Sunday Saver ticket is very economical, and with the rising cost of driving your easy-to-use smartcard ticketing car, it’s becoming even more attractive – a real cost-saver for families. solution for metropolitan trains, trams and buses, V/Line trains and coaches, When the new Sunday tickets were introduced we thought ‘Great, we will get back and major regional bus services with on the trains’. And apart from the cost saving, it’s more relaxing too. My wife and the launch of a Request for Tender by daughter like it because we can sit there together and talk to each other and the TTA in July 2004. comment on what we see around us, which you tend not to do as much when you’re driving. The new ticketing solution will be introduced in 2007, once the contract It also saves us the trouble of parking and it really opens up a whole network for the existing system expires. The around Melbourne, so people are really getting great value. Government also announced that the One day we went into the city and we thought we would drive and we got stuck roll-out of the new ticketing solution right in the middle of all the footy traffic, which was shocking. So the trains and would begin with a pilot in regional trams are just the best way to get around a large city like Melbourne, and the city’s Victoria. got some very good attractions that are close to public transport.
The smartcard is a durable, plastic card I think some people still have a misconception about what it’s like using public that can store value similar to a pre-paid transport – that needs to change and I’ve noticed that it is starting to change. It’s phone card. Smartcard tickets will also actually quite friendly. When we’ve caught the trams down to St Kilda Beach we be reloadable, can be scanned for less often get chatting to some of the older people or international tourists, and so there than half a second and can be used can be quite a community feel as well. from inside a wallet or handbag. Peter Hall, Greensborough Following the close of the tender process in October 2004, TTA short listed six bids received from 10 international consortia. Metlink signage and customer information to The short list was reduced to two Metlink continued to roll out its replace old signage that had different companies in March 2005, and the Wayfinding Signage project during the logos and designs. New signage has final winning tender from the Kamco year to vastly improve the level and been installed at half of all tram stops, consortium was announced in July 2005. quality of public transport information 38 railway stations, the Doncaster Park across the metropolitan train, tram and and Ride and several key bus routes. bus network. The Government is The project will continue over the next providing $28 million for the project as few years, with the train and tram part of the 2004 Partnership Agreements. network due to be completed by the end The project involves installing new of June 2006 and the bus network by clear and consistent colour-coded the end of 2007.
33 DOI Annual Report 2004–05 Metropolitan bus service Case study: Dennis Ma improvements The new tram extension to Vermont South has really made a difference to my daily The Government continued delivering on travelling. its commitment for more and better bus services to people living and working in I live in Ringwood and work just off Springvale Rd in Burwood East. I used to have to Melbourne’s suburbs. take two buses to get to work. Because of the frequency of the connecting bus, I would have to wait at least 20 minutes to get on the next bus and so it took me The innovative SmartBus program almost an hour to get to work. And if I missed the bus – well, more waiting! expanded in June 2005 to include Route 700 along Warrigal Road, linking Box Hill Now, I get off the bus in Vermont South and hop on a tram, and then disembark at and Mordialloc. Stage 1 of the new route Springvale Road. Because the tram is so frequent, I can plan my journey better and provides increased services to meet I’m at work in no time. Being able to depend on public transport also makes my life community needs. Stage 2 is being easier because I don’t have to drive. Even though I work in the suburbs, parking can progressively rolled out by mid-2006 to still be an issue. provide improved accessibility, better I’m also studying part-time at Swinburne Uni and now I’m able to just get on the information at bus stops and new tram at Springvale Road and head directly to uni in Hawthorn. It really has made it so technologies to provide buses with much easier for me to get around, and I can afford to spend the time reading uni priority at traffic lights. notes on the tram instead of driving and battling with the traffic. The Government announced the Dennis Ma introduction of further SmartBus routes Employee, MYOB, Burwood East as part of the MTP. This includes a new Rowville to Caulfield route, using Wellington Road as part of the Eastlink An ongoing program of replacing older The infrastructure works included project and an outer eastern route to link buses with new, accessible low-floor extending tram Route 75 for about three Frankston, Dandenong and Ringwood. buses is under way. Ninety buses were kilometres along the Burwood Highway replaced in 2004–05 – bringing the median from Blackburn Road to The growing suburb of Caroline Springs total fleet of new buses to 630. This Vermont South, building a new tram/bus received extra bus services in July 2004. represents 43 per cent of the total fleet. interchange opposite Vermont South The continuation of the successful shopping centre, and installing 10 new Trainlink bus services between Epping A government process to review bus raised tram platforms with shelters Railway Station and the Plenty Valley contracts, due to expire in late 2007, along the route. town centre in South Morang, and began in 2004–05. The review process between Cranbourne and Cranbourne will cover all aspects of the current The new tram services were launched East were guaranteed following the contracts and will be conducted in full in July 2005 as part of the Knox Transit release of the 2005–06 State Budget, consultation with the bus industry. Link. The Transit Link delivers better which included an extra $8.1 million for quality and more accessible public transport to the Knox City shopping this initiative over the next four years. Tram and train network centre through a combination of the Services in outer Melbourne will be extensions tramline extension to Vermont South and further improved in the next 12 months. Vermont South Tram Extension a high-frequency connecting bus service Commitments for expanded services in continuing to Knox. Melbourne’s Yarra Ranges and Cardinia Construction of the road and tram municipalities are among initiatives infrastructure for the Vermont South The new integrated tram and bus announced for 2005–06. Tram Extension project was completed services have significantly increased during 2004–05, on time and within the transport options for residents living original $30.5 million capital budget. in Melbourne’s east.
Access and mobility 34 Craigieburn Rail Project Docklands Drive Think Tram The provision of high-quality and Tram services to the New Quay area At the same time, the Government accessible public transport to the rapidly of Docklands began in January 2005, began the $30 million Think Tram developing Craigieburn urban growth following completion of the $7.5 million program, a two-year initiative that aims corridor is a priority for the Government. project to extend tram Routes 30 and 48. to improve tram journey times and service reliability. The Craigieburn Rail Project will The project, which was completed extend electrified metropolitan train on time and on budget, involved Measures include: services from Broadmeadows to extending the tramline and providing • modifying traffic lights at some Craigieburn, providing a new station new stops from La Trobe Street, along locations to give greater priority to at Roxburgh Park and replacing the the Harbour Esplanade median and trams existing station at Craigieburn with a into Docklands Drive. premium station. Frequent electrified • providing a physical separation Yarra Trams managed the project, which rail services from Craigieburn will run between trams and traffic was jointly funded by DOI and VicUrban. direct to the City Loop. • facilitating quicker boarding and Tenders were received in July 2005 for alighting times (for example, the Tram service improvements the railway signalling works contract and construction of platforms at stops) Melbourne’s tram service welcomed the main works contract (track and civil, back some old favourites and embraced • better enforcement of existing road station buildings and overhead power new initiatives during 2004–05. rules and more information to systems). An announcement of the motorists about how to share roads successful tenderers for both contracts W-class trams with trams will occur in the 2005–06 financial year. The year saw the return of the city’s • connecting the tram and VicRoads A number of smaller, preliminary works entire W-class fleet following the traffic control centres. packages were completed during completion of an extensive upgrade 2004–05, including: Work progressed on sections of eight program. W-class trams now run on tram routes nominated to receive initial • the relocation of a major water the City Circle service, La Trobe Street tram priority treatments. For example: supply main to Docklands Drive and Chapel Street. The historic trams now boast a • more than two dozen road • a new intersection on the Hume significantly improved braking system, intersection treatments have been Highway, built by VicRoads to speedometers and pantographs, introduced on Sydney Road in enable an adjacent road to be ensuring the long-term continuation Brunswick/Moreland closed and provide additional land of the heritage fleet. for the main construction works. • a trial of the program in Clarendon Street, South Melbourne, has led to ALSTOM Australia Limited was awarded the permanent introduction of a separate $6.4 million contract to install intersection hook turns, two right- new underground communications, hand turn bans and tram/car power and signalling cabling alongside separation strips the line between Broadmeadows and Craigieburn. • new tram stop treatments were agreed for Collins Street that will significantly enhance passenger amenity as well as improve tram travel times.
35 DOI Annual Report 2004–05 New and refurbished trains Commonwealth Games Transport access for people with and trams transport planning disabilities Significant headway was made on DOI is responsible for coordinating The Government and public transport upgrading Melbourne’s train and tram infrastructure development and spectator operators made considerable progress in fleet during the year. transport services for the Melbourne 2006 implementing measures to increase train, Commonwealth Games. tram, bus and taxi accessibility for all Melbourne now has 95 modern, members of the community. Good low-floor trams, with the final of the During 2004–05, public transport progress is being made in implementing 59 Combino trams delivered in planning for the Games continued and the requirements of the Disability November 2004. They were in addition was well advanced, with public transport Discrimination Act 1992 (DDA) Disability to the 36 Citidas trams that entered operators starting to implement activities Standards for Accessible Public Transport service in 2002. in preparation for the Games. 2002. All new works and services coming The entire fleet of 29 new X’Trapolis Planning started in early 2004 when into operation after 2002 are required to trains and the fleet of 31 new Siemens a scope document was sent to all comply in full. Retrospective upgrading is trains are in service on the suburban operators defining the expectations being planned with audits undertaken of train system following the delivery of the of the Director of Public Transport most conveyances, premises and final tranches of both trains in December and the Office of Commonwealth infrastructure. 2004 and February 2005, respectively. Games Coordination for the public The introduction of the low-floor tram transport system during the Games. The refurbishment of A-class and B-class fleet, coupled with the ongoing program Operators responded with Games trams also continued throughout the year. for upgrading tram stops, has Services Plans, outlining strategies significantly improved access to tram and activities for the delivery of North Melbourne Railway Station services for people with mobility services to events. These plans are Approximately two million city and impairments. A total of 95 low-floor trams being refined and will be finalised by regional commuters use North are now operational. By the end of June the end of 2005. Melbourne Railway Station as an 2005, more than 60 tram stops were interchange each year. With additional New public lighting is being installed upgraded to full DDA compliance, services planned for the redeveloped in parks around Games venues in the including the Melbourne University Spencer Street Station, the traffic at Yarra Park area and will be completed superstop that opened in February 2005. North Melbourne Station is expected later in 2005. Works already completed A $4.5 million upgrade of a number of to grow. include the construction of a new metropolitan railway stations began and access ramp and access improvements To ensure that the station caters for includes providing priority seating, at Jolimont Station. Construction of the anticipated patronage growth, the MTP signage, handrails, tactile tiles, waiting Yarra Precinct Pedestrian bridge, to link identifies the station’s redevelopment areas for wheelchair and scooter users key sporting venues with the CBD, also as a priority action for improving and anti-slip surfaces. All metropolitan progressed to schedule during the year. access via the passenger rail network. trains comply with the Disability The Government has allocated $3.6 Standards and regional trains already million to undertake detailed planning comply with the 2007 and 2012 and design of the station upgrade. milestones. This preliminary work will be completed The roll-out of low-floor buses across by the end of 2006. Victoria also continued and by the end of the financial year 43 per cent of metropolitan buses and 21 per cent of country route buses were wheelchair accessible. In addition, 344 wheelchair- accessible taxis are available in Victoria.
Access and mobility 36 The Government continues to receive Taxi Customer Charter An extra 18 licences for wheelchair- advice from the Public Transport The Taxi Customer Charter was accessible taxis were issued in 2004–05: Access Committee on significant established as part of the reform 12 in the metropolitan zone and six in access issues as it implements initiatives announced to improve the outer metropolitan and regional areas. projects to meet the federal disability quality and efficiency of taxi and hire-car standards for public transport. services. The charter was developed in Public Transport Ombudsman consultation with the taxi industry and Former Chief Executive of the County major community groups, and details Taxi service improvements Court, Mr James Hartnett, was the rights and responsibilities of The Victorian Government’s expansive appointed Public Transport Ombudsman customers and taxi drivers. program for reforming Victoria’s taxi (PTO) for Victoria in July 2004. industry continued in 2004–05. The charter was required to be displayed Mr Hartnett brought with him in all taxis from mid-April 2004. From August 2004, the second round outstanding credentials as a barrister of Peak Service taxis began operating, and solicitor, having extensive Multi Purpose Taxi Program bringing the total number of the ‘green experience in mediation and dispute top’ cabs to 199. The Peak Service Changes to the Multi Purpose Taxi resolution, including nine years as the cabs operate from 3.00 pm to 7.00 am Program (MPTP), announced by the Chief Executive Officer of the Legal daily to meet increased customer Victorian Government in 2003–04, Services Commission of South Australia. demand during these hours and at ensured that in 2004–05 the Program In 2004–05, the first full year of operation special events. remained available to Victorians who are for the PTO’s office was recorded, which unable to access public transport Applications for a further 101 Peak began in April 2004. The office has adequately due to severe and Service licences were invited in June received nearly 850 complaints since permanently disabling medical 2005, with those taxis expected to start then, with most being satisfactorily conditions, while keeping the cost within from late 2005. resolved without the need for formal the State's available budget. mediation. The taxi industry also reported a The total cost of the subsidy in 2004–05 significant improvement in the number was $32.5 million. More than 5,000 of taxis working late at night since the members had their exceptional introduction in August 2004 of a 20 per circumstances applications approved cent late-night surcharge on metropolitan and their subsidy cap further increased. taxi fares. The surcharge replaced the A further 3,472 members suffered a $1.10 loading which was an inadequate deterioration in their condition and were incentive for drivers to work late at night. granted uncapped subsidies. In January 2005, the Minister for At the same time, a growing confidence Transport reaffirmed a ban on external in the wheelchair-accessible taxi service advertising on taxis, and taxi owners was reflected in an increased number of and advertising agents were advised to trips recorded for these cabs. A State- remove such advertising by 31 March wide total of 396,000 taxi trips by people 2005. The ban was in response to a in wheelchairs in wheelchair-accessible longstanding government view, shared taxis were subsidised under the MPTP by some sectors of the taxi industry, during the year, a 3 per cent increase that commercial advertising adversely on 2003–04. In total, 509,000 trips were affects endeavours to promote a clean, taken by people in wheelchairs under professional image for the industry. the MPTP.
37 DOI Annual Report 2004–05 New Year’s Eve public transport Case study: Drew Beavan New Year’s Eve 2004 was an I didn’t start Buchan Bus ‘n’ Freight to become a millionaire; I wanted to provide overwhelming success for Melbourne’s something for the community, to give it some public transport, because we are an public transport service with around isolated community and it’s a very out-of-the-way place if you don’t have a car. 200,000 people leaving their cars at home to use trains, trams or buses to travel to There’s been a need for transport into this area for a long time. It used to have and from celebrations in the CBD. a twice-daily service, but that ceased in 1957, so they’ve gone 48 years without a transport service. That’s shaped this community into one that is very reliant on The success directly resulted from the car. all-night train, tram and NightRider bus services provided by the Government People have been a bit slow to catch on about the new service, but it’s surprising for city centre revellers, together with a how they are starting to come out of the woodwork and people I never knew Metlink-negotiated sponsorship deal existed are starting to use the bus. There’s one chap who takes his washing down with ING Direct that allowed transport to the laundromat in Bairnsdale, and one older passenger catches the bus every operators to offer free travel. fortnight to do her shopping because she doesn’t like to drive that far any more.
Ninety per cent of the metropolitan taxi With the higher petrol prices, people are even more likely to catch the bus to do fleet was also on the road until at least their shopping in Bairnsdale, or arrange for me to pick up their freight there, rather 3.00 am, keeping waiting times for taxis than driving the 200 km round trip themselves. We’re also linking the tourist towns to a minimum. of Buchan and Lakes Entrance by public transport, which provides an alternative means of transport for tourists. Station Pier It’s great that the Government is bringing public transport to areas such as this by The most significant issue for the Pier supporting small businesses like mine. It wouldn’t be viable otherwise. during 2004–05 was the implementation of higher levels of security to meet the Drew Beaven International Maritime Organisation’s Owner/operator, Buchan Bus ‘n’ Freight security requirements.
Funding of $15.27 million was approved Cruise-shipping strategy • Carnival Cruises announced it would for security upgrade works including: The Government continued the trial home-porting the Pacific Sky in implementation of the second Victorian 2005–06, requiring full passenger • construction (lowering central Cruise Shipping Strategy – Destination transfers and ship’s provisioning. roadway, upgrade of the substation Victoria. Key achievements included: and main switchboard, public address 23,300 passenger days and 11,000 crew system and evacuation system) • 16 cruise ship visits to Station Pier days were recorded in 2004–05. Cruise and two to regional ports ship visits declined from 25 in 2003–04 • signage to 17 in 2004–05, however this is still • Carnival Cruises’ Sapphire Princess, • two hydraulic gangways. considered a strong result in view of the largest cruise ship to berth in the uncertainties arising from global Management responsibility for Station Melbourne, visited six times terrorism and its impact on the tourism Pier (including cruise shipping) was • the publication of a hardcover industry in general. Bad weather resulted transferred from DOI to the POMC on book Welcome and Farewell: the in four cruise cancellations. 1 February 2005. Story of Station Pier to mark the 150th Anniversary of Station Pier
Access and mobility 38 Connected Victoria OUTCOME 4:
OUTCOME 4: Connected Victoria
Deliver an innovative, accessible information and communication technology environment that shares the benefits of new technologies across the community and drives economic growth.
Case study: Hilary Newman
“These online community groups are helping older people to recognise the value of IT and electronic communication. They provide a reason to use the technology and help to build confidence and break down the isolation that some people feel as they get older.” Outcome 4: Connected Victoria
ICT is a major contributor to growth in the TPAMS • The Far East Gippsland Learning Gross Domestic Product and is vital to TPAMS was established to provide Pathways Project will provide the economy both as an enabler and as a strategic framework for the improved connectivity and an industry in its own right. DOI, through procurement and management of educational services via video MMV, has a key role in implementing the telecommunications services across conferencing in 10 schools. Government’s ICT agenda, Connecting the whole of the Government. (Total cost of project: $2.1 million) Victoria, which aims to deliver the benefits of technology to the State. All major TPAMS contracts were Fibre to the home executed during 2004–05. These will Through VicUrban, the Government MMV contributes to the Government’s result in around $200 million in lower released a tender seeking a commercial Growing Victoria Together objectives costs over the next five years. through policies which build cohesive provider of fibre to the home (FTTH) for communities and reduce disadvantage, TPAMS has also secured in excess the Aurora estate, north of Melbourne. grow and link all of Victoria and create of $100 million worth of broadband The Government is using the Aurora more jobs and thriving, innovative infrastructure (mobile, Digital Subscriber project to identify commercial, industries across Victoria. Line and fibre) to be delivered across regulatory and planning barriers to FTTH the State. and to establish a viable model for the Key achievements in 2004–05 are outlined delivery of FTTH in all new housing below. Further details relating to specific Broadband Innovation Fund estates in Victoria. projects can be obtained at the web The Broadband Innovation Fund (BIF) addresses listed beside those projects. aims to accelerate the roll-out of Demand aggregation broadband to government agencies in The Government has committed Key achievements health, education and other key sectors. funding to support a range of demand It will improve business efficiency and aggregation projects for local council Broadband service delivery and encourage high strategies, including funding the bandwidth data services in regional development of telecommunications Broadband Framework communities. strategies for G21 (City of Geelong, The Broadband Framework, released in Borough of Queenscliff, Surf Coast Three additional projects were funded April 2005, sets out the Government’s Shire, Golden Plains Shire, Colac Otway and started during 2004–05. agenda for using state-of-the art Shire) and Latrobe City. broadband in the delivery of services, and • The Yarra Valley e-Rich Learning Environment will improve student providing better broadband infrastructure Growing the industries of engagement and performance in the and services for the wider community. the future Yarra Valley by embedding ICT in The Framework sets down six strategies In 2004, the Government announced that teaching and learning practices of a which show how the Government will it would review its 10-year ICT Industry community of seven secondary, 40 work with communities, industry and Plan, Growing Tomorrow’s Industries primary and one special school using other levels of government to achieve Today. The review follows a period of a broadband virtual private network. broadband objectives. recovery and consolidation in the (Total cost of project: $12.7 million) industry and will provide a fresh basis for ACIL Tasman modelling has concluded • The Regional Mobile Digital ICT industry and government activity for that, by 2015 in Victoria, broadband Mammography Project will the medium term. Early work was enabled ICT will: improve the quality of regional anchored by a broad consultation phase • add $15 billion to Gross State Product breast-screening services through in the second half of 2004, including the use of wireless networks to publishing an issues paper and hosting • create an additional 153,000 jobs connect the Breast Screen Victoria a series of industry round tables. • increase real wages by 3 per cent mobile screening van and regional In parallel with this work, a range of assessment centre, enabling rapid • increase investment by 10.46 per cent. initiatives to further develop the ICT transmission and diagnosis of industry were implemented in 2004–05. For further information, see digital mammography images. www.mmv.vic.gov.au/broadband (Total cost of project: $9.1 million)
Connected Victoria 40 Details of these initiatives are outlined ICT mission to Japan • the CSIRO furthered its discussions below. In June 2005, the Minister for ICT on a number of potential research led the largest ever trade mission of projects with Yasaki Corporation Trade fairs and missions program Victorian ICT companies to Japan. • iCrystal Pty Ltd established an The Government provided more than The delegation of 32 organisations alliance with NEC Japan, and 134 trade fair grants to Victorian ICT and more than 50 individuals from the subsequently NEC Singpore to companies so they could attend Victorian ICT sector participated in the supply RFID technology for a range international trade fairs, conferences trade mission, which included business of solutions and missions in 2004–05. This meetings, site visits, networking functions resulted in a projected $266.5 million and a visit to World Expo 2005 in Aichi. • iCrystal Pty Ltd, Accelerated in additional exports. The mission included participants from Language Learning Centre, five industry sectors, including electronic Solution-e Pty Ltd, and Dejai Pty Ltd For further information see games, eLearning, intelligent transport formed a joint venture to deliver www.mmv.vic.gov.au/tradefairs systems, radio frequency identification web-based English learning Major events attended include: (RFID) and business software. Key programs to universities in China outcomes included: and elsewhere ICT mission to India • Etech Group Pty Ltd entered into • Clickstream Corporation Pty Ltd In late October/early November 2004, a partnership with Japanese formed a strategic relationship with the Minister for ICT, The Hon. Marsha broadband provider Data Pacific Toyota Motota Corporation, Japan. Thomson MLC, led a delegation to India and Waseda University to undertake for that country’s most important ICT a joint eLearning research and Investment attraction trade show, BangaloreIT. The mission development project within Tokyo’s Despite a difficult global environment, comprised nearly 50 individuals primary and secondary schools the Government facilitated a series of representing 35 companies. Key new ICT investments in the State in • the Australian Children's Television outcomes included: 2004–05. These investments secured Foundation formed an agreement to • Tata Consultancy Services, one more than $200 million in new capital pilot its 3D multimedia authoring of India’s largest ICT companies, investment and generated more than platform, Kahootz, to every school in announced plans to expand its 1,100 new jobs. They included: Mitaka City, Japan Melbourne operations to include an SAP centre of excellence • the National ICT Australia (NICTA) Satyam Computer Services Victoria Research Laboratory One of the major investment • Melbourne-based software company, established strong collaborative achievements included a commitment in Business Intelligence Technologies, research links with the Japanese September 2004 by Satyam Computer announced the opening of the first National Institute for Communication Services to create 300 new highly skilled of several Business Intelligence Technology (NICT) ICT jobs by establishing its global Institutes in India development centre in Victoria. The new • NICTA Victoria Research Laboratory, • discussions began that led to a centre will be the largest Satyam global together with the Minister for trade-based memorandum of development centre located outside Information and Communication understanding being signed India and will build on Satyam’s initial Technology, will host a delegation between the Karnataka Government 200-person commitment. from the FTTH Council (Asia Pacific) and the State of Victoria. As a result, in September 2005 a Victorian Government Business Hitachi • Bravura Solutions Ltd signed a Office will be opened in Bangalore Hitachi invested $10 million to undertake regional distribution agreement with in the second half of 2005. the research and development into Computer Sciences Corporation, FTTH technologies in partnership with Japan local company CEOS.
Above: Vice Chancellor of Victoria University, Professor Elizabeth Harman, Minister Thomson and Satyam Managing Director, Mr Rama Raju, sign a Memorandum of Understanding to form a new alliance between Victoria University and Satyam Computer Services.
41 DOI Annual Report 2004–05 LogicaCMG ICT workforce development The Government subsequently began Announced in November 2004, Research undertaken in 2004–05 on the implementation of two programs LogicaCMG established a 24 by 7 the ICT industry confirmed the growing targeted at improving the delivery of, Global Monitoring Facility in Melbourne. need for the industry to become more and students’ access to, IBL programs. The facility is part of the company’s strategic by identifying, developing and These collaboration initiatives should global strategy of monitoring customer applying the skills, knowledge and result in even closer relationships critical facilities and fits into its network experience that are necessary for the between industry and universities. of similar centres in the United States industry's continued growth. To this end, www.mmv.vic.gov.au/Skillsandcareers of America, United Kingdom and India. new and existing initiatives, outlined below, were delivered during the year to ICT research and development Clusters support the Government's priorities in Research was begun into the current ICT industry and education. During 2004–05, two additional state of ICT Research and Development specialist clusters were established – in (R&D) in Victoria to improve the ICT careers RFID and intelligent transport systems quality of policy advice and inform (ITS). More than 400 small to medium Qualitative and quantitative research future policy and program development. enterprises (SMEs) now participate in was undertaken into the attitudes of The research not only confirmed the government facilitated clusters. Eleven current and recently graduated Year 12 ubiquitous nature of ICT and its role clusters have been established to date students towards ICT careers and post- in R&D, but also the difficulty in clearly and include eLearning, computer compulsory education. defining ICT R&D activities. games, Victoria.Net, Open Source, This research showed that while young Enterprise Java, microelectronics and Future R&D research will seek to build people generally consider a career in photonics. on existing relationships with industry ICT to have good opportunities, they and the education sector to increase For more information, see have difficulty finding adequate business expenditure, partnerships and www.mmv.vic.gov.au/ICTIndustry information on ICT courses at improve the marketing of Victoria’s ICT universities or other colleges. To this R&D infrastructure. RFID end, the Government’s dedicated ICT www.mmv.vic.gov.au/RandDCommercial The RFID cluster represents about careers web site for young people was isationResourceCentre 50 Victorian companies and leverages upgraded with links to all ICT-related Victoria’s competitive advantage in the courses, the 30 most popular jobs in integration of logistics and software ICT, and descriptions about skills Connecting Communities development. The cluster has required for these roles. In December 2004, as part of announced the establishment of an For more information, see Connecting Communities: the second industry relationship with a similar www.mmv.vic.gov.au/Year12research wave, the Government committed an group in India. additional $9 million over 4 years to www.mmv.vic.gov.au/RFID Industry/Education collaboration support a range of initiatives aimed at increasing ICT uptake by Research undertaken in 2004–05 technologically disadvantaged Intelligent transport systems confirmed that collaboration between communities. These include: The group is focusing on the research, the ICT industry and education providers development and application of ITS to is widespread and reliant on all parties • the $3.5 million Public Internet Victoria’s road, freight and public to develop and maintain close and Access Program (PIAP), which seeks transport systems. It is estimated that positive relationships. Supplementary to ensure that community-based the sector will be worth $35 billion in the research also confirmed the mutual free or affordable public internet USA alone by 2010. benefits of industry-based learning (IBL) access continues to be provided to programs to ICT industry and disadvantaged Victorians who would www.mmv.vic.gov.au/IntelligentTransport universities, as they enhance recent not otherwise have such access. Systems graduates’ readiness and capability to Under PIAP, funding is provided to enter the workforce. organisations to upgrade their
Connected Victoria 42 existing computer equipment and/or Case study: Hilary Newman subsidise their internet connection COTA provides education courses for our members and also in the wider community costs. The first funding round of about the challenges of aging, including how to access the Internet and use email. PIAP was held in 2004–05 and resulted in 67 organisations Many older people are still exploring what technology can do for them. They are receiving funding much smarter about what they need to know and what they don’t need to know. (You can actually teach an old dog new tricks, it’s just very smart about what new • the My Connected Community tricks it wants to learn!) To maintain their interest, it’s therefore important to introduce program aims to stimulate the the technology in a practical and fun way. development of online interest groups and encourages community We received funding under the My Connected Communities program which we used groups located in Victoria to create to create 35 online communities. These include COTA Cycling, where members can their own online communities. share their cycling news; and COTA Travelling, where they can share travel stories and During the period, the Government advice and set up their own photo albums. Each community has a COTA moderator committed an additional $1.9 million who monitors the online content and approves applications to join the group. to this highly successful program. The two main barriers older people face are obtaining the knowledge and then The fourth funding round, held finding the physical resources, such as a computer with Internet access. during 2004–05, resulting in an additional 22 community They are also anxious about using computers and fear they’ll make a mistake. It organisations receiving funding takes time to educate them that pressing the wrong button isn’t disastrous.
• DOI began preliminary discussions These online community groups are helping older people to recognise the value of with key government agencies and IT and electronic communication. They provide a reason to use the technology and community organisations and help to build confidence and break down the isolation that some people feel as undertook research to examine the they get older. specific training needs and barriers Hilary Newman to training, both formal and informal, Education officer, Victoria’s Council on the Aging (COTA) experienced by people with a disability. Major activities in 2004–05 included: eCommerce Exhibition Projects program Boosting eCommerce eCommerce Roadshows As part of the fourth round of the The use of technology to do business This highly successful program eCommerce Exhibition Projects Program continued to be a focus of activity for continued into its third year, with the (ECEPP), in September 2004, $480,000 government in 2004–05. Under Victoria’s launch of a fresh round of grants to in grants was awarded to seven groups eCommerce Advantage, released in 20 organisations in December 2004. of companies to develop and implement 2001, the Government has provided This further commitment of more than innovative eBusiness projects. To a range of assistance to small and $250,000 delivered around 60 roadshow promote the learnings from projects, the regional companies looking to be more events across regional Victoria – Government launched Track-a-project, active technology users. With statistics including Bairnsdale, Benalla, providing an effective means to monitor showing continuing strong business Edenhope, Wycheproof, Wodonga, and disseminate project results. This uptake of ICT, the Government will now Mildura and Swan Hill. Further events brings the total government commitment focus on supporting broadband enabled are in the calendar for 2005–06. in ECEPP grants to more than $1 million use of ICT through its Broadband involving more than 200 businesses. Framework. For further information, see www.mmv.vic.gov.au/roadshow For further information, see www.mmv.vic.gov.au/ecepp
43 DOI Annual Report 2004–05 eGovernement • the contracts for the eServices Panel Telecommunications Carriage Chief Technology Officer The eServices Panel was originally Services (TCS) were executed established in March 2003. A refresh The Chief Technology Officer (CTO) is of the panel was conducted in 2005, responsible for the implementation of a • transition to new voice, mobile and resulting in 64 new companies being whole-of-government approach to ICT data services suppliers began. appointed to the panel, which now has infrastructure, projects and contracts For more information, visit a total of 208 companies. The panel as determined by the Office of the www.mmv.vic.gov.au/tpams simplifies the procurement process for Chief Information Officer (OCIO) in contracting ICT services in the public DPC. Projects the CTO is currently Project Rosetta sector. Services offered include managing include Victoria Online, The implementation of Project Rosetta eServices strategy development, TPAMS, and Project Rosetta. The CTO continued during 2004–05. This project application development services, also administers a number of major will provide the Government with a online management services and whole-of-government contracts. Details secure, flexible, electronic directory quality assurance services. of initiatives implemented in 2004–05 service. It will include the core are outlined below. Benefits to the selected companies infrastructure and a foundation for include greater opportunities to government services such as secure Telecommunications Purchasing and develop partnerships with government access to eGovernment services. Novell Management Strategy departments, the opportunity to was awarded the contract to design, showcase work undertaken through TPAMS was established to provide a develop, implement and support the the panel, fewer overheads and easier strategic framework for the procurement project over the next five years. and management of telecommunications processes for engagement with the For more information, visit services across the whole of the Victorian Victorian Government. www.mmv.vic.gov.au/rosetta Government. This is one of the largest For more information, visit network upgrades in Australia comprising: www.mmv.vic.gov.au/eServicesPanel Victoria Online • up to 4,000 sites for data transfer The Victoria Online Gateway enables Whole-of-government ICT contracts • 40,000 voice circuits the best online access to government A range of strategic whole-of- for Victorians. The portal features • 25,000 mobile services government contracts for the supply sophisticated indexing and search of ICT were renegotiated in 2004–05. • 21,000 managed telephony ends capabilities to make it easier for These contracts will deliver annual (Victorian Office Telephony Service – Victorians to find and access information savings to government. VOTS). and services from federal, state and local government. During 2004–05 For more information visit All major TPAMS contracts were additional performance improvements www.mmv.vic.gov.au/ict_contracts executed during 2004–05. These will were made to the site. result in around $200 million in lower Data centres costs over the next five years. For more information, visit www.vic.gov.au The Data Centre Consolidation TPAMS has also secured in excess of project will reduce duplication across $100 million worth of infrastructure government. A tender process began (mobile, Digital Subscriber Line and for a whole-of-Victorian-Government fibre) to be delivered across the State. production data centre and a data During 2004–05: recovery centre.
• transition from the StateNet arrangement to the new VOTS arrangement was completed
Connected Victoria 44 development Rural and regional OUTCOME 5:
OUTCOME 5: Rural and regional development
Boost prosperity and enhance rural and regional communities through the provision of improved transport, energy, and information and communication technology infrastructure and services.
Case study: Kevin Burley
“This is the best thing the government has done in Victoria for 50 years….It will be a 21st century train service and I really think people will be gladly getting on the trains and they won’t want to go back to their cars.” Outcome 5: Rural and regional development
The Victorian Government aims to VicRoads makes a substantial The new state-of-the-art signalling boost prosperity and enhance rural contribution to the Rural and Regional system is now in operation on sections and regional communities through the Development outcome through its of the Bendigo and Geelong lines. provision of improved transport, energy, development and management of More than 350 km of high-quality, and information and communication Victoria’s road network. Major regional heavier rail has been installed, together technology infrastructure and services. road projects under way during 2004–05 with 430,000 concrete sleepers. included continuing to upgrade the DOI aims to support regional and rural The RFR project involves the most Calder Highway, planning for the development by providing integrated extensive upgrade of safety protection Geelong Bypass, and treating accident transport, energy and ICT solutions to at level crossings ever undertaken in blackspot sites throughout the State. communities across the State. This in Victoria. More than 100 level crossings Key achievements for VicRoads are turn helps to boost economic growth have been upgraded on the country summarised in the section on Statutory and enhance employment and sections of the four RFR lines. Authorities in this report. investment opportunities. Community consultation about V/Line’s DOI is also helping to reduce the divide Through its Linking Victoria program, draft 2006 weekday timetable was between city and country by ensuring the Government is delivering the biggest completed during the year. The draft that people living in rural and regional ever program to revitalise Victoria’s timetable was based on an extra areas have comparable access to ICT regional transport infrastructure. 28 services each weekday, including services and infrastructure, and more new early morning and late-night Reintroducing country passenger rail equitable access to energy supplies. services. Around 2,500 people provided services to four regional centres and feedback during the consultation upgrading another four major rail Key achievements process. The timetable is being further corridors are major elements of this developed in readiness for the new unprecedented transport infrastructure PUBLIC TRANSPORT services, which are expected to begin renewal program. in mid-2006. Rail services have been returned to Regional Fast Rail Two of Australia's biggest rail bridges Bairnsdale and Ararat, with planning Victoria’s regional rail system is being were completed during the year, one over under way for the Mildura and Leongatha modernised by generational change the Moorabool River and the other over lines. This project is providing a new era projects which will provide a platform Lal Lal Creek on the Ballarat line. Another in rail travel for more than 200,000 for regional growth. The RFR project major construction achievement was the regional Victorians and is supporting is the biggest upgrade of regional total rebuilding of the Sunbury rail yard on regional development and tourism. rail in 120 years, with extensive the Bendigo line in just one week. DOI is also working behind the improvements being made on the The installation of a fibre-optic network scenes, with other agencies and local railway lines to Ballarat, Bendigo, alongside the railway lines for the new communities, to develop better ways Geelong and Traralgon. signalling and additional broadband of using existing transport services in The revitalised network will provide a capacity for regional areas was also country Victoria. Initiatives such as the modern rail infrastructure asset linking completed. Transport Connections Program and the Victoria’s main regional centres with Multi Agency Policy Team help to identify Construction and testing of the new Melbourne, supporting economic cost-effective opportunities to maximise VLocity trains continued. During the development and job growth in these transport options in areas where year, the trains won the Australian areas and making them even more people’s choices are often limited. Design Awards and the Engineers attractive places to live, work and invest. Australia Award for excellence in Major works continued during engineering design. Thirty-eight new 2004–05, with the bulk of construction VLocity trains will eventually be in complete and works progressing well operation on the four regional lines. to replace the outdated signals with a modern signalling system that will boost reliability, comfort and safety.
Rural and regional development 46 Case study: Kevin Burley A rail crossing safety campaign was conducted among the communities I’m responsible for checking the contractors’ work and making sure that they involved, to prepare them for the address the relevant paperwork, safety issues and work methods. I also check the reintroduction of train services and quality and accuracy of their work. remind them to stop, look and listen My role covers the civil aspects of the job – embankments, cuttings, drainage, for trains. platforms and bridges. There are also Regional Fast Rail supervisors who monitor the signalling and track works. Bairnsdale Patronage on the Bairnsdale line, which I worked on the Ballarat line earlier and now I’m working on the Bendigo line. I’ve reopened in May 2004, grew by almost been doing a round trip from home, six days a week, ever since they closed the 35 per cent, or 28,000 people, during Bendigo line earlier this year and I won’t take a holiday until the job’s finished. the first 14 months of operation for the There’s a challenge out there every day. People ask if it’s a boring job doing all new twice daily services. these kilometres, but it’s definitely not boring.
My job is to get the best out of the contractors. I work closely with them to make Mildura and Leongatha sure that we get the product we’re paying for. Quality assurance is by far the biggest The 2005-06 State Budget committed part of my job. $11.7 million for planning works for This is the best thing the government has done in Victoria for 50 years. When people the return of services to Mildura and get on these new, faster trains they are not going to hear the old ‘clickety-clack, Leongatha. Of this amount, $8.7 million clickety-clack’; there are no joins in the upgraded rail lines any more. With the is being spent on project development increased comfort and safety, passengers are going to be very happy. It will be a for reintroducing passenger services 21st century train service and I really think people will be gladly getting on the trains between Mildura and Melbourne. and they won’t want to go back to their cars. Detailed work is under way on the scope, design, cost and delivery Kevin Burley schedule for the project, and rail Surveillance Supervisor – Civil Works, Regional Fast Rail project team upgrade priorities are being examined.
Development work costing $3 million is in Country passenger rail services works carried out by Works Infrastructure progress to restore passenger rail services Pty Ltd and managed by DOI included: to Leongatha, including investigations Ararat • replacing 8,000 sleepers of track condition, environmental Passenger rail services were returned to requirements and future patronage. Ararat and the Wimmera region in July • building a 575-metre rail connection 2004, more than a decade after the from the existing end of the broad- railway line was closed. V/Line is running gauge line to Ararat Station the new service as an extension of its • installing new decking on several existing service to Ballarat, and is bridges providing two daily trains each way, including stops at Beaufort. • improving drainage and clearing vegetation. Since the return of the rail service to Ararat, patronage on that corridor has Ararat Station also underwent a grown by almost 26 per cent, or more dramatic makeover. The platforms were than 18,000 people, between Ararat and resurfaced and a new canopy was Ballarat during the first year of operation. erected. Public address systems were installed and new seating and signage Upgrading the railway line to Ararat was provided, as well as improvements required improvements to 22 level to lighting, information boards and car crossings and 92 km of track. Other parking areas.
Above right: Victorian Premier, Steve Bracks (right) and Minister for Transport, Peter Batchelor, ring a bell to send off the train on one of the free rides provided during celebrations for the reopening of passenger services to Ararat.
47 DOI Annual Report 2004–05 Marshall Railway Station Wodonga Rail Bypass and coach services previously operated Access to train services for people The Wodonga Rail Bypass is a joint by West Coast Railway, came under living and working in Geelong’s growing Victorian/federal government initiative to V/Line management. southern suburbs and nearby surf coast remove the railway lines and associated In May 2005, DOI in association with communities was greatly enhanced with infrastructure from Wodonga's central the five local government authorities of the opening of the new Marshall Railway business district. The bypass will Geelong, Colac-Otway, Golden Plains, Station in April 2005. significantly improve the efficiency of Surf Coast and Queenscliff (operating freight and passenger services on the The $5 million station provides direct under the G21 Regional Alliance), began main interstate railway line connecting access to 38 rail services each week work on an integrated public transport Victoria and NSW. and offers connections to bus services strategy for the region. to and from Grovedale, Waurn Ponds, While DOI advanced planning, Other improvements included: Deakin University, Highton, Belmont, land acquisition and relocation of • introducing new services on the Barwon Heads and Ocean Grove from services during 2004–05, progress Ballarat City Transit System Monday to Saturday. was delayed by the project’s reliance on a decision being made about the • completing road infrastructure works The station project included: standardisation of the north-east rail associated with the construction of • constructing a 176-metre platform corridor. Discussions continued between the $1.5 million bus and train with a small station building and the key stakeholders, primarily the interchange at Bendigo Railway passenger shelters Australian Rail Track Corporation (ARTC) Station. Work on the station canopy and the primary infrastructure lessee, • an off-street bus interchange and is under way and will be completed Pacific National, to try to reach car parking for 100 vehicles (with by November 2005 agreement on standardisation. room to provide additional parking • implementing service improvements as demand grows) At the local level, the Wodonga to Allansford and to the north-east Diamonds Soccer Club was relocated • compliance with Federal Disability growth area of Warrnambool as part to new facilities at La Trobe University’s Discrimination Act requirements, of the Warrnambool Transport Wodonga campus, to free-up land for including accessible passenger Strategy the rail bypass alignment. Preliminary toilets • operational improvements to Mildura design work was completed for the bus services, including extra • a run-around track to provide relocation of services, including sewer morning and afternoon trips flexibility to operate locomotive- and water mains, along the bypass hauled services, Sprinters and the route and tenders were expected to • implementing revised bus services new VLocity trains be called in September 2005. to support the opening of Frayne • upgrading the Marshalltown Road and Trinity Colleges in Baranduda level crossing from flashing lights to Regional public transport service and Wodonga, respectively boom barriers and pedestrian gates improvements • as part of the Transport Connections to the south side. Planning for regional bus improvements Program, new transport solutions continued in 2004–05. From late May were implemented for Castlemaine to 2005, the Sale to Loch Sport service was Chewton using taxis, and for upgraded upgraded to include an extra weekly Gelantipy–Buchan–Bairnsdale service, while in June the Government passenger and freight services. announced $304,500 in new and Reviews of services throughout improved bus services for the Latrobe regional Victoria have identified Valley to begin in September 2005. additional opportunities for From July 2004, V/Line assumed improvements and planning for these operation of the Shepparton and Cobram will continue in 2005–06. rail and coach services previously operated by Hoys Roadlines and, from September 2004, the Warrnambool train
Rural and regional development 48 Free Christmas Day transport Transport Connections has provided an Planning and relationships: examining V/Line train services were available to effective mechanism for delivering the potential for new working Victorians free of charge on Christmas transport change at the local level. relationships and protocols, and Day 2004 to encourage people to visit Examples of the work undertaken identifying opportunities to clarify family and friends and leave their car include establishing vehicle-sharing responsibilities and improve at home if they wanted to enjoy a opportunities in isolated communities, coordination across government and celebratory drink. There were 5,080 trialling more flexible use of local taxis, with local government. Examples of passenger trips taken on this day, conducting local and regional transport planning and provision models used in indicating that many people took forums, and supporting demonstration other States will also be reviewed. projects to increase service viability – advantage of this offer. Free Christmas DHS is leading this module, with other such as combining passenger transport Day services were also available on government departments, including DOI, and freight activities. metropolitan buses, trains and trams. contributing. KPMG is currently conducting an Flexible and innovative transport services: independent evaluation of the program, Addressing transport needs investigating cost-effective options to the results of which will assist decisions improve access and mobility in low- Transport Connections Program about how government can support density areas where demand for transport transport disadvantage in the longer term. ‘Transport disadvantage’ is experienced services is low and/or sporadic. by many different individuals and Key issues include overcoming existing groups across Victoria. Those who Multi Agency Policy Team project can experience disadvantage include regulatory barriers to innovation in Improving access and mobility for people who: services provided by taxis, hire cars transport disadvantaged people in rural and buses; and identifying mechanisms, • are too young to drive and regional areas is a complex process, processes and incentives that may be particularly due to the number of • are financially disadvantaged needed to encourage providers to agencies involved in providing regional develop new approaches to service • have a mobility impairment or transport, the inflexibility of current delivery. Opportunities for community permanent disability regulations, and funding constraints. actions, such as social share-car • are older and unable to drive. The Multi Agency Policy Team (MAPT) schemes will also be considered. project seeks to develop solutions If these people also live in communities This module is led by DOI, with using an across-government approach. with limited public transport options, contributions from several other The project is jointly sponsored by the their level of transport disadvantage can government departments. Secretaries of DOI and DHS, with DOI become severe. acting as the lead agency. Several other The Transport Connections Program government departments are major was established in 2003 by the Victorian contributors. A team with representation Government to address the access from contributing departments has and mobility needs of communities been established to determine how to and individuals who face transport address access and mobility issues in disadvantage in predominantly rural rural and regional areas. This project and regional Victoria. The Program is a team reports to the State Coordination joint initiative of DOI, the Department of and Management Committee (SCAMC). Human Services (DHS), the Department The following two modules began in of Education and Training (DE&T) and early 2005, and will continue through to the Department for Victorian the end of the calendar year: Communities (DVC).
49 DOI Annual Report 2004–05 ENERGY – ACCESS AND EQUITY recipients of funding support for provision of improved ICT services to extensions. These towns include businesses and the public, reduce Network Tariff Rebate Bairnsdale, Paynesville, Creswick, inequalities in public access to Maiden Gully, Barwon Heads, information technology, and provide The Government’s Electricity Network Camperdown, Port Fairy, Hurstbridge, information technology training to Tariff Rebate scheme has been nine Yarra Valley towns, seven towns people in rural and regional areas. extended for three years from 1 April in the Macedon Ranges area and five 2005. The scheme is designed to towns on the Mornington Peninsula. eliminate the difference between the CHAMPIONING GIPPSLAND annual bills of rural, regional and outer Interval meters A Fairer Victoria: Creating Opportunity suburban electricity consumers using up and Addressing Disadvantage, the In July 2004 the ESC mandated the to the average level of electricity usage Government’s long-term social policy roll-out of interval meters for electricity of comparable consumers in the framework, outlines a change in the way customers in Victoria. The roll-out, metropolitan area. government plans and delivers services based on a timetable related to to better meet the varied needs of With the exception of some high- customer size and meter type, will Victoria’s communities, especially those volume, small business consumers, start in 2006. above-average use of electricity is not that continue to experience disadvantage. In 2005, DOI commissioned a study subsidised under this program. Instead, To facilitate a better connected public to investigate the case for enhanced the Government has introduced a range sector that provides seamless delivery communications functionality associated of initiatives to reduce electricity use and of government services, departmental with the interval meter program. The increase energy efficiency, including: secretaries have taken on roles as study will consider a range of options, ‘champions’ of joined-up action in each • a $2.5 million High Efficiency Gas benefits and costs of enhanced of the regions. Heater Rebate that pays up to communications technologies. Of a $1,000 to help non-metropolitan range of features to be examined, DOI Secretary, Howard Ronaldson, has Victorians to replace inefficient oil, rural and regional electricity consumers been appointed regional champion for electric and wood heaters with stand to benefit from the potential for Gippsland. In this role, Howard is a link environmentally-friendly gas – saving improved quality of supply monitoring, between departmental secretaries and up to 70 per cent on energy bills remote meter reading and tariff flexibility. the recently established Gippsland • a $3 million Energy Task Force – Regional Management Forum (RMF). Wind energy installing energy-efficient products in The RMF will be chaired by Howard and low-income households in regional DOI delivered the Electricity Industry comprise State government regional centres to reduce energy bills by up (Wind Energy Development) Act 2004. managers and the chief executive to $170 a year. The passage of the Act has lowered officers of the six municipal councils in barriers to grid connection for Victoria’s the region. Forum members will identify, Economic growth and community wind energy industry, thereby providing develop and facilitate proposals to development clarity and transparency for generators. address priority issues in the region for Natural Gas Extension Program which integrated planning and service delivery is critical to achieving effective The Natural Gas Extension Program is ICT ACCESS outcomes. The objective is to provide providing financial support to reticulate more flexible and responsive services regional towns with natural gas. DOI is Regional telecommunications which respond to the differing needs of providing policy support and advice to A number of initiatives listed in the local communities. Regional Development Victoria as it Connecting Victoria section of this report implements this important government also made a significant contribution to Considerable progress has been made initiative. the Rural and Regional Development in identifying priorities for consideration outcome. Projects such as TPAMS, the by the RMF during 2005–06. As at 30 June 2005, 29 towns (with Broadband Innovation Fund, My five more towns added since, bringing Connected Community and the Public the total to 34) were announced as Internet Access Program support the
Rural and regional development 50 logistics system Seamless freight and OUTCOME 6:
OUTCOME 6: Seamless freight and logistics system
Plan and deliver infrastructure and a regulatory regime to improve productivity and safety in the freight and logistics sector while reducing environmental and amenity impacts caused by the movement of freight.
Case study: Tennealle O’Shannessy
“The growth and change within the industry means there is a real opportunity for talented and motivated people, male or female, to make a positive contribution to the development of the freight and logistics industry.” Outcome 6: Seamless freight and logistics system
Victoria’s continued economic growth The recent legislation to reform Key achievements and prosperity relies on the efficient the State’s rail access regime, and movement of freight and commercial initiatives such as the Dynon Port Rail Deepening Melbourne’s traffic. Link, Melbourne Port@L and Geelong shipping channels Port Rail Access are contributing to The MTP outlines the Government’s achieving this long-term objective. The ongoing viability of the Port of intention to make the best use of existing The development of major intermodal Melbourne – the busiest container port freight and logistics infrastructure and freight terminals such as the facility at in the nation – is vital to the Victorian to invest where necessary to overcome Somerton will also make a significant and national economies. However, the critical bottlenecks and to develop the contribution to reaching this goal. depth of the current shipping channels transport system to support industry leading into the Port restricts around and economic growth. The MTP There has been an emphasis in recent 30 per cent of container ships from encompasses strategies for: years on improving regulation of the loading to maximum capacity. freight and logistics sector and guiding • improving access to key freight the strategic development of Victorian In its April 2004 Economic Statement, areas ports from a social, economic and Victoria: Leading the Way, the Victorian • improving national, regional and environmental perspective. Government identified deepening the cross-town freight connections shipping channels as a major initiative for Safety and security are also becoming improving access to and the efficiency of • managing safety and environmental increasingly important issues for port the Port. The Government has given in- issues relating to commercial managers and operators. Measures principle support to proceeding with transport. undertaken during 2004–05 to improve channel deepening, provided the project security at Victorian ports are reported In its Victoria: Leading the Way Economic can satisfy State and Federal under Outcome 1: Public Safety and Statement, the Government has identified environmental requirements, is technically Security. the project to deepen the shipping feasible and is financially viable. In the channels into the Port of Melbourne as a VicRoads contributes to the effective 2004–05 State Budget, $14.9 million was major strategic initiative for securing the flow of freight and commercial traffic provided towards detailed design studies Port’s status as Australia’s premier by maintaining and extending the arterial for the Channel Deepening project. container port. Detailed investigations into road network and other key road freight Following the exhibition of the Port of the requirements, and potential impacts, links. VicRoads’ key achievements are Melbourne Corporation’s (POMC) EES, of channel deepening were conducted reported in the Statutory Authorities the independent review panel during 2004–05 and are continuing. section of this report. submitted its report in February 2005, Trial dredging is scheduled to begin in August 2005. Trends in Ship Size The Government has a target of 30 per cent of port-related freight to be 2,250 North Europe and Mediterranean carried on rail by 2010. By mid 2005, North and East Asia 2,000 South-east Asia the rail modal share of port freight had increased to around 17 per cent. The 1,750 2005 mode share figure has been 1,500 adjusted downwards from that published 1,250 in 2004, reflecting the inclusion of Webb 1,000 Dock traffic in the total of port freight. 750
520
Average container ship size (TEUs) 250
0 1980 1985 1990 1995 2000
Source: Dewry Shipping Consultants 2001
Seamless freight and logistics system 52 recommending that further assessment Case study: Bill Green work be carried out. Responding to the The Victorian Government’s recognition of the need for competition on the rail panel’s recommendations in March, the network has been a great assistance to us. Minister for Planning issued a statement which called for: The Government provided support by guaranteeing us unfettered access to the main ARTC railway line. This means the Austrak/GPT Somerton intermodal freight terminal • POMC to undertake trial dredging can now be operated as a fully functioning, common user, open access facility. This • a supplementary EES (SEES) to be ensures competitive prices through increased competition on the rail network. prepared by POMC Public infrastructure investment in our area, including the Somerton Road upgrade, • draft Assessment Guidelines for the was a key factor behind P&O Ports’ decision to take out a long-term lease to operate SEES to be exhibited for public our terminal. It was also a factor behind Coles Myer’s decision to locate its national comment distribution centre here. The planned relocation of the Melbourne produce markets to • the appointment of an independent Epping is another example of strategic Government investment in this area. expert group to advise DSE on the All of these initiatives are working together to ensure that the Somerton terminal is SEES now recognised as a key infrastructure site for transport and logistics, and more • the establishment of a project companies are being attracted to this hub as a result. This will lead to a greater stakeholder advisory committee with volume of international and domestic freight movements on rail and go a long way an independent chair, to examine a towards achieving the Government’s goal of getting 30 per cent of port-related range of stakeholder views and freight onto the rail network by 2010. concerns We are working in a very positive environment at the moment. We are in a unique • a further independent panel process position with the support we are receiving from the Government to achieve the goal to review the SEES after it is exhibited of being ‘the State of supply chain excellence’.
• a government taskforce to oversee It’s a great example of private and public investment leading to a positive outcome the project. for all concerned.
Progress in the last quarter of 2004–05 Bill Green towards achieving these requirements General Manager, Austrak included: Improving rail access Legislation to provide for the new rail • preparations were under way for trial access regime was passed by dredging to begin in August 2005, Rail access Parliament in May 2005. including seeking State and Federal In July 2004, the Minister for Transport government approvals. The trial The Government also released a and the Treasurer announced that dredging is expected to take place discussion paper on pricing issues Victoria’s rail access regime would be over a nine week period related to the regime and has revamped to ensure on-rail competition. consulted externally with industry on • the draft SEES Assessment The new rail access regime will introduce what parts of the network should be Guidelines were prepared by DSE a workable third-party access regime in declared for access. and were due to be released by the Victoria. It is intended to promote Minister for Planning in July for Rules and guidelines will be established competition in rail freight services, comment by the Essential Services Commission efficient pricing of, and fair access to, (ESC) to facilitate the regime. • a stakeholder advisory committee rail infrastructure and services. was established with an independent chair, Terry Laidler
• a government taskforce was established.
53 DOI Annual Report 2004–05 Pacific National The Framework provides clarity for aimed to address concerns about a Since the sale of Freight Australia to port managers and industry about the fragmented approach to land and Pacific National in September 2004, Government’s commitment to the marine-based safety and environment the level of cooperation between the State’s ports, and to ensuring that plans management and accountability. This Government and Pacific National has for future growth are considered in was particularly an issue at the interface been both positive and constructive. relation to the wider interests of the between land and water in the ports. community. The Framework targets the Regular project and relationship The implementation of safety and Government’s three core directions for meetings between key staff ensure environment management plans across the commercial trading ports: that a range of complex issues are Victoria’s commercial and local ports addressed. • building on existing capabilities and has been progressing well, with the A Master Planning Committee and competitive strengths release of the Ministerial Guidelines for Port Safety and Environment Board were formed in late 2004, • anticipating and planning for future Management Plans in 2004. consisting of key representatives from land, access and infrastructure DOI, Pacific National and VicTrack. The needs Port management plans will promote Master Planning Committee continues best practice safety and environmental • providing the right regulatory and to meet regularly and detailed performance across all aspects of port institutional settings for a development and scoping of each activities. They will also encourage port sustainable port system. project approved by the Master Planning managers to actively address relevant Board is under way. The Framework explains the key issues arising from port operations for challenges the ports sector faces the benefit of employees, port users, Victorian Ports Strategic and the need for the ports to have neighbours and the wider community. in place effective safety, security and Framework In addition to requiring a comprehensive, environmental management systems The Victorian Ports Strategic Framework risk-based approach to safety and that comply with state, national and was released in November 2004, environment management by port international requirements. providing a platform for the managers, management plans are Government’s intention to build greater intended to facilitate integration of the capacity in the ports sector to ensure Port safety and environment different safety and environmental the future development of Victoria’s four management plans regimes that already apply, and to commercial trading ports at Melbourne, To achieve improvements in port address any overlaps or gaps. Port Hastings, Geelong and Portland. management practice, legislation was managers are required to have their revised in 2003 to require all ports to plans certified and in place by the end have in place a Safety Management of August 2005. Plan and an Environment Management Plan appropriate to the scale and nature of port operations. This requirement
Seamless freight and logistics system 54 Smart Freight Case study: Tennealle O’Shannessy The growth of container freight is I started working at Patrick Terminals as a stevedore seven years ago, driving mirrored by an equally significant straddle carriers and forklifts. number of road trips necessary to accommodate the growing freight task. Unexpectedly, I found the industry to be so much fun that I began to seriously This is placing increasing pressure on consider it as a long-term career possibility. I enrolled in an Advanced Diploma in the State’s freight and logistics system, Maritime Business and I haven’t looked back! For my double degree in which culminates in and around the Port Laws/Management I submitted a thesis focussing on the impact of judicial reform of Melbourne. on the stevedoring industry.
As part of the Innovation Statement: My current position as an Operations Support Manager with Patrick has given me Victorians. Bright Ideas. Brilliant Futures, experience across many aspects of its operations and enabled me to develop a the Government has provided funding of better understanding of the entire freight and logistics industry in Australia. In the $4 million over four years (ending June long-term I hope to eventually secure a senior management position. 2007) for the Smart Freight project. Being selected as the 2005 Women in Freight Scholarship recipient has been the Smart Freight initiatives aim to apply ICT- highlight of my career to date. It has allowed me to extend my study to complete based solutions that create efficiency my entire MBA. In terms of career development, the Scholarship has increased my gains and reduce freight delays in the corporate profile within Patrick and has resulted in more involvement in national- supply chains through the Port. Projects level projects. have included the development of ICT While it’s true that most of my colleagues are male, there are enormous career mapping and modelling studies of the development possibilities for women in this industry and I’d encourage them to port’s supply chain to help identify give it a go. opportunities for achieving seamless transmission of data and freight along The growth and change within the industry means there is a real opportunity for the transport chain. talented and motivated people, male or female, to make a positive contribution to the development of the freight and logistics industry. At the completion of Stage 1 of the project in 2005, Smart Freight had built Tennealle O’Shannessy a sound understanding of the Port of Awarded the 2005 Women in Freight Scholarship Melbourne’s supply chain through analyses of the business needs and the technology in use. The project website had also been upgraded.
An industry/government sub-committee has been established to provide high level guidance for Stage 2 of the Smart Freight project. Stage 2 will involve the development of a number of ICT tools to assist industry with container management and to provide real-time travel information.
55 DOI Annual Report 2004–05 Melbourne Port@L The Melbourne Port@L Board, bringing The Dynon Port Rail Link has been Melbourne Port@L is an initiative together the heads of the port, rail and recognised as a freight project of designed to develop a long-term road authorities, was formed in mid-2004 national importance, receiving an strategic framework for improving the and is charged with implementing the allocation of $110 million under the efficiency of the Port of Melbourne, by Port@L concept, ensuring the precinct Federal Government’s AusLink initiative. is planned properly and in a sustainable integrating the port and the adjacent The improved rail link to the Port will manner, and working closely with freight transport facilities, including the increase the amount of freight which can stakeholders and local communities. Dynon rail precinct, into a single, world- be carried directly to the dock via rail, The Board drafted a high level class intermodal hub. avoiding significant additional handling development strategy which is due to costs and reducing traffic congestion on With trade through the Port continuing to be submitted to Government in the Footscray Road. boom, improved integration of sea, road 2005–06 financial year. and rail interfaces will generate future Detailed design planning was well jobs for Victorians, ensure export costs advanced during 2004–05, including Dynon Port Rail Link are globally competitive and cement the formal consultation with primary Port’s position as the nation’s premier Currently, the Port of Melbourne’s only stakeholders. Further work has been container freight hub. rail access is via a single, dual gauge identified in order to confirm road track that crosses busy Footscray Government initiatives under the banner and rail design and layouts and it is Road, which gives priority to road traffic. of Melbourne Port@L are seeking to: expected that this will be confirmed The Government committed $2.1 million with stakeholders during 2005. Work • enhance rail and road access to rail in 2004–05 to design and plan for the is also continuing to finalise a detailed and shipping terminals construction of a direct, uninterrupted construction strategy and the tender for • plan for increased road use around rail link into the Port. construction is scheduled to be let in the port 2006. Completion is expected in 2009. The proposed Dynon Port Rail Link will • free up strategic land around the remove the conflict between road users port for freight-related activities and rail access into the Port and will include construction of: • encourage growth of outer metropolitan intermodal terminals • an elevated section of Footscray servicing the port Road over the rail track connection into the Port precinct • increase the Port of Melbourne’s container terminal capacity, • an elevated section of Appleton Dock including investigating the feasibility Road and Enterprize Road, integrated of a northwards extension to with the Footscray Road overpass Swanson Dock • two dual gauge main lines between • use information technology to the new Port junction and the existing improve logistics-chain performance main line north of Footscray Road, - through the Smart Freight initiative. associated signalling works and the reinstatement of the ground level service road along Footscray Road.
Above: The Government is working to address the current conflict between road and rail at the single track crossing of Footscray Road, under the CityLink structure. The new Footscray Road overpass will remove this crossing altogether, making the area safer and travel times faster.
Seamless freight and logistics system 56 Victorian Slipway Strategy Port of Hastings Portland Trawler Wharf Work began on the Victorian Slipway The Port of Hastings, which is one of In 2002, the Victorian Government Review with Sinclair Knight Merz Victoria’s four commercial ports, is likely announced that it would put in place completing a draft report for Part 1 to become increasingly important for new management arrangements for the of the project. The Slipway Review commercial shipping over the next two Portland Fishing Precinct and would represents an important first step in or three decades. allocate up to $2 million from the the development of a comprehensive Regional Infrastructure Development With the release of the Victorian Ports Victorian Government Slipway Strategy. Fund to repair and upgrade facilities at Strategic Framework, the Government the precinct. The Slipway Review will focus on earmarked Hastings for future gathering vital preliminary information development as an international Following the completion of assessment regarding the current status and container port to be operating after 2030. and planning studies, public consultation condition of slipways across the State, on a preferred proposal for redeveloping Port of Hastings Corporation (POHC) as well as providing an analysis of the precinct began in August 2004. has begun work on a major land use and current and projected supply and corridor access planning study that will The Government subsequently allocated demand characteristics. develop a vision and strategic outcomes an additional $3 million in 2005 to the Given that both commercial and for land use planning in, and transport precinct upgrade, bringing the project’s recreational vessels are required to access to, the port over the next 25 years. total funding to $5 million. be taken out of the water from time to The study will also aim to better integrate time, whether for repairs, routine planning and future development of maintenance or regulated survey, the the port with the social, economic and standard and availability of essential environmental influences on and in infrastructure, such as slipways, is of the surrounding areas and to identify major importance to the effective necessary actions to achieve the vision functioning of the marine industry. and outcomes. The planning study is expected to take at least another 12 months to complete.
A steering committee, chaired by POHC, is providing overall direction for the study and for development of the resulting strategic plan. The committee includes representatives from the Mornington Peninsula Shire, DSE and DOI. In June 2005, POHC announced the formation of the Port of Hastings Community Reference Group to provide wider industry and community input.
57 DOI Annual Report 2004–05 Geelong land use planning Port security The Port of Geelong is Victoria’s The Commonwealth Maritime Transport second largest port in terms of volume, and Offshore Facility Security Act 2003 with a total annual throughput of over provides the regulatory framework for 12 million tonnes. The Port specialises preventative anti-terrorist security in dry bulk cargo. measures for:
The 2004 draft Strategic Land Use Plan • Australian ports, port facilities, port recommended a land use vision and service providers and ships giving overall strategic framework for the port, effect to the International Ship and guiding principles for the development Port Facility Security Code (ISPS of port-related industry and activities Code) – effective 1 July 2004. over the next 20 years. It covered port • Australian offshore oil and gas facilities, land use supporting the port, facilities – effective from September transport infrastructure, buffers to port 2005. and port-related activities and development approvals for those All maritime security plans (MSP) activities. The draft plan was subject to required under the Act for Victorian ports, extensive public consultation in late port facilities and port service providers 2004 and early 2005. were approved by the Federal Department of Transport and Regional A steering committee including Services in July 2004. A new MSP for representatives from DOI, DSE, DIIRD, Station Pier was approved on 22 July the City of Greater Geelong, the EPA, the 2005 to reflect the pier’s transfer to Victorian Regional Channels Authority the POMC. (VRCA), VicRoads and Toll GeelongPort is overseeing the completion of the plan, MSPs include requirements for: to integrate future planning and • waterside restriction zones around development of the port with the social, facilities servicing cruise ships, economic and environmental influences interstate ferries and liquid bulk on the surrounding areas. terminals and, when a ship is at DOI, in consultation with steering berth, continuous patrols by picket committee members, is preparing a boat. draft revised plan that incorporates the • the formation of Port Security public feedback to date. Committees. DOI is represented on the Port of Melbourne Security committee and maintains regular contact with port security officers at the other regulated ports.
Seamless freight and logistics system 58 energy supply Secure and sustainable OUTCOME 7:
OUTCOME 7: Secure and sustainable energy supply
Provide policy advice and implement programs to deliver a safe and reliable energy supply to the State that is efficient, affordable and increasingly sustainable.
Case study: Ken Gardner
“The most satisfying thing about my job is when we see real improvements in safety performance and we get feedback from people about how our advice has saved a life or prevented a serious injury.” Outcome 7: Secure and sustainable energy supply
Victoria’s energy supplies underpin our In its Growing Victoria Together Energy – greenhouse policy economy and the effective functioning of statement, the Government describes A core challenge for DOI is to identify our communities. They will play a major greenhouse gas emissions as one of the and negotiate greenhouse policies role in determining the long-term State’s most critical natural resource that will realise Victoria’s short and sustainability of the economy and the issues and states that: ‘Our approach to medium-term economic goals, while environment. reducing greenhouse gas emissions will positioning the economy for the focus on the need to move to a less Sound advice and effective expected long-term challenges of global greenhouse-gas-intensive economy over implementation of policy is pivotal to warming. time, including changes to the amount meeting the energy objectives of the and types of energy we use’. In 2004–05, DOI led work to gain Government. Cabinet approval of the Greenhouse Government also plays a critical role in As the State’s economy continues to Challenge for Energy Position Paper. ensuring that energy consumers can grow, so will the demand for energy. The paper has identified a number of benefit from increased competition Between 2000 and 2020, demand for strategies to stimulate market demand among private-sector providers, and electricity is projected to rise by 40 per for new, clean-energy products and that a safety net of consumer cent, demand for gas by 52 per cent services in the electricity sector. These protections is maintained. and transport fuel use is predicted to include the establishment of: increase by 38 per cent. This Outcome reports the main • a national emissions trading achievements during 2004–05 towards In Victoria, there is substantial potential scheme securing and extending Victoria’s energy for cost-effective improvements in resources, reducing harmful emissions, • an Energy Technology Innovation energy efficiency to be achieved and regulating the energy sector, and Strategy policy initiatives are being developed to protecting consumers. realise that potential. • a Renewable Energy Strategy DOI’s efforts to improve safety in the The Government continues to focus • an Energy Efficiency Strategy. production, transportation and use of on attracting new investment in secure, energy are reported under Outcome 1: low-cost and reliable energy supplies. Public safety and security, and initiatives At the same time, the Government’s aimed at assisting energy consumers in objective to reduce greenhouse country Victoria are reported under emissions requires a greater focus on Outcome 5: Rural and regional expanding the contribution of renewable development. energy sources and reducing the level of emissions from coal-fired power stations.
Secure and sustainable energy supply 60 Figure 4
Net greenhouse emissions in Victoria – megatonnes CO2 equivalent 70
60
50
40
30
20
10
0
-10 Energy Manufacturing Transport Fugutive Other energy Industrial Agriculture Forestry Land clearing Waste industries and construction emissions related processes and other (oil and gas) emissions Sector 1990 1995 2002
National emissions trading scheme Energy Technology Innovation Incentives for renewable energy Strategy Following the release of the Position DOI led an interjurisdictional working Paper, DOI led substantial work to DOI, with DIIRD, successfully gained group to develop a market signal for develop the design principles for an Energy Retail Code (ERC) approval investment in renewable energy emissions trading scheme. This work of $103.5 million for the Energy production, to supplement the federal was undertaken through the Technology Innovation Strategy (ETIS). government’s Mandatory Renewable Interdepartmental Committee on Implementation of the strategy has Energy Target (MRET) scheme. A Greenhouse Challenge for Energy and begun, with the international release decision on a preferred scheme is the interjurisdictional working group, and of the ‘Requests for Proposal’ for planned for late 2005. was subsequently endorsed by all State construction of a pre-commercial, and Territory first ministers. The design large-scale demonstration plant with Hazelwood Power Station – principles include that an emissions new generation clean-coal technology. greenhouse reductions trading scheme will: DOI assisted the Minister for Energy Wind energy • include realistic targets Industries and Resources in DOI facilitated development and negotiations for a Greenhouse • be national in scope passage of the Electricity Industry (Wind Reduction Deed with International Power • appropriately protect existing coal- Energy Development) Act 2004. The Act Hazelwood, to acheive a cap on fired generators and trade-exposed lowers barriers to grid connection for greenhouse emissions. energy intensive industries Victoria’s wind energy industry, thereby providing clarity and transparency for • enable further investment in these energy generators. sectors to proceed where there are net benefits to the State.
61 DOI Annual Report 2004–05 Supply security and investment Case study: Ken Gardner facilitation The most satisfying thing about my job is when we see real improvements in safety DOI assisted the Minister for Energy performance and we get feedback from people about how our advice has saved a Industries and Resources to resolve life or prevented a serious injury. industrial disputes at Cranbourne Terminal Station and Laverton North Things powered by gas and electricity are all around us. We use them every day Power Station to ensure supply reliability and we get complacent with them and forget that they are potentially deadly. This is in the 2004–05 and 2005–06 summers. true for the householder right through to the tradesperson. ‘Do-it-yourselfers’ are the worst offenders; they often have no idea what they are doing and what the ALCOA Aluminium safety issues might be.
Alcoa Aluminium consumes a The number of deaths caused by gas and electricity is very low these days and we substantial share of Victoria’s total have an excellent safety record in Victoria. But the risk is always there and there are electricity supply, and its operations still too many people suffering serious injuries, such as burns from fires. require a planning approach that is The most common causes of fires in the home are leaving cooking unattended or aligned with the Government’s drying clothes too close to a gas or electric heater. Many injuries are also caused energy policy. by people failing to connect up their gas barbecues correctly. In 2004–05, DOI assisted Regional For the home-owner, the key gas and electricity safety message is: ‘Don’t do it Development Victoria to lead the yourself’. Always use a licensed tradesperson and always ask for a certificate from Government’s response to Alcoa’s your electrician or gas-fitter to make sure the work has been done properly. Always proposed expansion of smelting in buy approved appliances and get them serviced regularly. And make sure you Victoria, which included; install safety switches in your house. • clarification of Alcoa’s proposal Ken Gardner • negotiation of a memorandum of Executive Director, Energy Safe Victoria intent between government and the company to develop a Energy market reform • proposed reforms of the national memorandum of understanding gas market and gas access regime, to undertake expansion To give effect to Ministerial Council for Energy (MCE) decisions on to be released for consultation early • development of a detailed reforms to the national electricity in 2006 Government work program to inform market, DOI led the drafting of the new • a national gas emergency a Cabinet decision in 2006 on a national electricity law and provided a management protocol, which was memorandum of understanding substantial contribution to the drafting agreed by the MCE in 2004–05. • establishment of a possible project of the National Electricity Rules. In 2004–05, DOI drafted a paper on team and project management In addition, the DOI led the development Victoria’s energy cross-ownership laws structure to manage the work of MCE reforms and proposed reforms, and facilitated a subsequent consultation program. including; process. • a proposed framework for the national regulation of energy distribution and retailing, due to be released for consultation early in 2005–06
Secure and sustainable energy supply 62 Australian Energy Regulator and Safety net Investment facilitation Australian Energy Market Commission DOI advised on the passage of Substantial investment will be needed Following the establishment of the legislation to enact the following over coming years to meet Victoria’s Australian Energy Regulator (AER) and consumer protection measures: future energy requirements. A core aim Australian Energy Market Commission of energy policy is to facilitate efficient • extending the safety net framework (AEMC), DOI has led the negotiation of and sustainable investment and to expiry date to 31 December 2007 MCE measures to eliminate regulatory maintain Victoria’s competitiveness while duplication in the energy market. A major • prohibiting late payment fees being reducing greenhouse gas emissions. step in this process has involved the levied by energy retailers on small DOI policy has helped to secure new cessation of the Australian Competition consumers peaking supplies that are being built and Consumer Commission (ACCC) • prohibiting early exit fees being and will come into service over the next authorisation of energy market rules. levied by retailers on small couple of years. These include the With other MCE jurisdictions, Victoria consumers who elect to exit from a Basslink connection to Tasmania and made appointments to the AER and contract the Laverton North Power Station, which AEMC and other arrangements to ensure are expected to come on line in 2006. their successful start on 1 July 2005. • a requirement for retailers to publish energy price information for Phase 1 construction of the Portland Wind Retail markets consumers Energy Project has been completed, and is now in the commissioning phase. DOI advised the Minister for Energy • a requirement for retailers to pay a When completed, the $270 million Industries and Resources on the penalty to consumers who have project is expected to generate enough administration of the Government’s been disconnected in non- power to supply 100,000 homes, earn four-year agreements on standard compliance of the ERC. electricity and gas prices with Victoria a potential $100 million a year, As the reforms were being developed, incumbent retailers. Prices for 2005 create more than 400 jobs in Portland DOI advised the Minister on, and were gazetted by the retailers in and reduce greenhouse emissions by administered the establishment of, compliance with the agreements. up to 700,000 tonnes a year. a committee of inquiry to advise the Government on energy consumer hardship and the installation and use of pre-payment meters.
Liquid petroleum gas code The DOI finalised a Retail Code for LPG consumers in consultation with LPG retailers, consumer representatives, Government departments and the Energy and Water Ombudsman of Victoria. The code will be launched during 2005–06.
63 DOI Annual Report 2004–05 Statutory appointments DOI oversees a number of statutory bodies that operate and regulate the energy markets and plan Victoria’s electricity transmission system.
Prior to the recent establishment of Energy Safe Victoria (ESV) in August 2005, the OCEI and the OGS were the regulators for energy safety in the home and workplace, while VENCorp manages the gas transmission system and spot market, and plans the Victorian transmission grid.
In 2004–05 DOI managed and provided advice to the Minister on the appointment of:
• a Chief Electrical Inspector within the OCEI, the Electrical Line Clearance Consultative Committee and Equipment Advisory Committee
• a Director of Gas Safety
• the VENCorp board of nine directors and one chair, which was undertaken in various stages according to the scheduled expiration of existing board positions.
The DOI also provided advice to the Minister on a number of appointments to national bodies overseen by the MCE.
These included:
• chairpersons and commissioners to the AEMC and the AER
• directors to NEMMCO.
Secure and sustainable energy supply 64 Integrated policy development OUTCOME 8:
OUTCOME 8: Integrated policy development
To provide coordination within the portfolio, with other departments and agencies and to manage relations with the federal government to achieve policy objectives within transport, energy and ICT consistent with the overall planning strategies and other policies of the Victorian Government.
Case study: Bill Penrose
“This group is working hard, the people on it are keen, and lots of ideas are coming out. We’d like to think that it’s not just an academic exercise and that the recommendations we make will go through and make a real difference in people’s lives.” DOI seeks to provide policy advice to measurement processes during Presentations on the MTP have been government that is timely, credible and 2004–05. The revised corporate made to a wide range of stakeholder objective. It is also important for DOI outcomes and KPIs are closely aligned groups and audiences, and DOI is advice to reflect the policy objectives with the Government's desired policy monitoring the Plan’s implementation to governing transport, energy and ICT goals, such as those outlined in Victoria: ensure that the greatest possible benefit and to be consistent with the Leading the Way, Growing Victoria is achieved from synergies with other Government’s major planning Together, and Melbourne 2030. They government strategies and programs. strategies and other policies. are being incorporated into the 2005–08 For further information, see Corporate Plan, which will be published in Coordination of policy across DOI is www.linkingvictoria.vic.gov.au late 2005. Some performance indicators a central function of the Planning and monitor the quality and effectiveness of Policy Division. It takes many forms, Melbourne 2030 the policy coordination process. including briefings for Ministers, policy Melbourne 2030 is the Government’s reviews, project reviews and integrated Key achievements for 2004–05 under long-term strategy for managing growth strategies, the MTP and DOI’s Asset the Integrated Policy Development in Melbourne. Although the growth Strategy. Outcome are outlined below. policy is led by the Department of Sustainability and Environment (DSE), Increasingly, DOI is participating with DOI is playing a significant role in the other departments to develop responses Key achievements planning and delivery of the transport to policy challenges that have proved services that underpin the strategy. difficult to meet in the past and where Linking Melbourne: Metropolitan resources are provided by a number of Transport Plan By 2030, Melbourne is expected to agencies. For example, the Transport grow by up to one million people and The MTP was launched by the Minister Connections Program seeks to an estimated 620,000 households, for Transport in November 2004. maximise the use of transport services generating an extra three million trips The Plan identifies the key transport provided by agencies and public per day on the city’s road and transit challenges posed by Melbourne’s operators at a local level, by providing systems. A key direction in Melbourne growth and development and sets out better information and coordination of 2030 is to make more activities practical strategies and actions to meet services, better access to community accessible by short trips to activity these challenges over the next decade services and activities, as well as centres and by public transport. To and priorities for the next 4–5 years. developing innovative and flexible ways meet the challenges of this future of responding to transport needs in local The MTP maintains a focus on high-level growth in travel, Melbourne’s public communities. social, economic and environmental transport services and cycling outcomes, and seeks integrated infrastructure are being progressively DOI’s Corporate Plan sets down solutions that make the best use of improved in line with the Government’s the outcomes that will define the existing infrastructure and the most Growing Victoria Together goal to lift the organisation’s contribution to the appropriate use of available modes. public transport mode share (from 9 Government’s priorities over the next Furthermore, it reinforces and supports per cent to 20 per cent of all motorised three years. It describes how DOI is the Government’s strategic framework trips) in the metropolitan area by 2020. responding to the numerous policy for managing land use and transport, The importance of walking, both as a challenges, asset management contained in Melbourne 2030. complementary mode of travel and as requirements and risks, and provides a mode in its own right, is also key performance indicators (KPIs) The MTP identifies and addresses a recognised, and is being picked up in through which progress is measured. range of critical issues under four main a number of newer projects currently The plan is updated annually, and the headings: under way. KPIs are reported to DOI’s Management 1. safety Committee on a quarterly basis. 2. managing congestion For further information, see 3. metropolitan growth www.melbourne2030.vic.gov.au DOI carried out an extensive review of its 4. support for economic development. strategic objectives and performance
Integrated policy development 66 During 2004–05, DOI continued to Case Study: Tonja Raymond coordinate the transport planning and TravelSmart is just great, particularly for families like ours. policy aspects of Melbourne 2030, contributing to strategic planning for I consciously try to take the children cycling more often and the bike book has the five growth areas – Casey/Cardinia, been very useful. I am walking more, rather than driving, and I’ve used public Hume, Melton, Whittlesea and Wyndham. transport much more often. I’m enjoying more fun times with the kids, who like the By June, the work of the Smart Growth changes to our travel habits. I’m also getting more exercise as a result. Committees was nearing completion, The information I received gave me the confidence to use public transport, with the last committee report due to be especially the local buses, and I found that I was given assistance with the submitted to the Minister for Planning by children, which made all the difference. August 2005. DOI undertook extensive transport modelling studies for growth Probably what I found most helpful was having the gentleman from TravelSmart area planning to assess current transport come to our house to answer my questions about the program. The information he and development patterns and determine left with us was very helpful and provided me with detailed materials about public future infrastructure investment transport routes as well as parks within the area. requirements and options. Tonja Raymond, Reservoir
TravelSmart program to schools such as the RACV's ‘Street The number of staff driving to work with TravelSmart is a travel demand Scene’, DOI/Metlink's ‘Travel On’, and employers involved in the TravelSmart management program that helps people VicHealth's ‘Walking School Bus’. It also Workplaces Program, continued to decline to reduce their dependency on car travel provides resources to simplify the travel in 2004–05. The Alfred Hospital recorded and to use more sustainable alternatives, planning process. a drop in the number of staff driving to such as walking, cycling or public work from 62 per cent to 54.4 per cent in The TravelSmart group is currently transport. 2005; the RACV at Noble Park recorded a piloting the effects of school travel 10.6 per cent drop in staff driving to work A travel behaviour change project plans on local congestion in Moonee alone in the 18 months to March 2005, involving 27,000 households in the Valley (Buckley Road precinct) and while staff at BP’s Melbourne Central City of Darebin was conducted by Boroondara (Barkers Road precinct). TravelSmart. Following its completion, office reduced driving to work by The TravelSmart University Program at an independent project evaluation 3.9 per cent and increased use of walking Monash University’s Clayton Campus was prepared. The results are being and cycling by commensurate amounts. recorded a drop in the number of first- assessed before publication. TravelSmart has worked with Melway to year students driving alone to campus produce three new maps in 2004–05 In 2004–05, TravelSmart also from 40 per cent in 2003, to 31 per cent highlighting sustainable transport established grants for small-scale in 2004. travel behaviour change projects in options in Melbourne. The new maps TravelSmart Workplaces Program partnership with local government bring together relevant information in a began two new projects helping (‘TravelSmart Local’). Four councils – detailed and readable form. employers in the CBD and the St. Kilda Warrnambool, Whittlesea, Stonnington Following on from early successes, Road precinct to develop and and Darebin – successfully tendered TravelSmart started the world’s largest implement ‘Green Transport Plans’. for grants that were matched by multimodal travel behaviour change These plans contain site-specific each council. project in the Cities of Moonee Valley and actions to encourage the use of more Maribyrnong this year. The project is being Also in 2004–05, a school travel sustainable transport modes to and undertaken in partnership with Metlink and planning guide was launched to help from the workplace. schools develop travel plans. The guide the participating local governments, and describes and evaluates related aims to reach up to 45,000 households education programs currently provided in the two municipalities. For further information, see www.travelsmart.vic.gov.au
67 DOI Annual Report 2004–05 Case Study: Cr Bill Penrose North East Integrated Transport Study DOI and north-eastern municipalities The VLGA was asked to send a representative to a working group to look into are assessing regional transport needs helping older people make the transition from driving to non-driving. I was a natural in the north-eastern suburbs of choice, not because of my age, but because I have a sight impairment and had to Melbourne. The study aims to provide a give up my licence two years ago. regional framework for transport Losing my licence was quite confronting. I had to assess what transport development, priority-setting and alternatives there were, living out in the country near Hurstbridge. Getting a bicycle investment over the next 20 years for all was the first step, and then I moved on to an electric bike because I’m 60 and it transport modes. Opportunities for helps on the hills around here. better integration between modes and The working group on maintaining mobility is an excellent policy initiative, as the land-use policy are central. number of people who are going to be in this position is increasing. If you lose your Issues for consideration by the study independent transport and you’ve been used to it all your life, you feel personally have been identified through an initial less in control and can end up being stuck at home, and that is something we round of public consultation. Travel don’t need to add to the experience of getting older. analysis and transport modelling is Anything that can alleviate that and help people to enjoy their old age is very nearing completion. worthwhile. Inner West Integrated Transport Study This group is working hard, the people on it are keen, and lots of ideas are The Inner West Integrated Transport coming out. We’d like to think that it’s not just an academic exercise and that Study has given consideration to a range the recommendations we make will go through and make a real difference in of project options and work on a number people’s lives. of these is already proceeding. They Cr Bill Penrose include TravelSmart programs in the Victorian Local Government Association representative, Cities of Maribyrnong and Moonee Valley, ‘Maintaining Mobility’ specialist working group rail freight improvements in Tottenham, upgrading the Calder–Tullamarine Freeway interchange, structure Maintaining Mobility Following a six month pilot program planning for the Highpoint Principal at Peppertree Hill Retirement Village The project ‘Maintaining Mobility’ is in Activity Centre, bus improvements and in outer eastern Melbourne, DOI response to the Parliamentary ‘Inquiry improved facilities for cyclists. City sponsored the publication of guidelines into Road Safety for Older Road Users Loop access will be enhanced by a for Getting About Without a Car, to help (2003)’, which recommended that commitment of funds to upgrade the older people make greater use of policy be developed to help Victorian passenger interchange at the North walking, cycling and public transport. drivers make the transition from driving Melbourne Railway Station. to non-driving. The study is being undertaken in Integrated transport studies A specialist working group of government parallel with a range of other regional and non-government representatives has During 2004–05, DOI led and investigations including complementary been established to recommend actions collaborated in a range of integrated work on rail capacity and east-west to help people in the transition to non- transport studies within metropolitan road links at the metropolitan level driving, and to develop an accompanying Melbourne. The major studies included: and Melbourne 2030 planning for communications strategy, with input from Growth Areas. the TAC. This will ensure drivers are aware of transitional issues and non-driving options that are available to them. Policy options are being assessed and the project will be completed by mid-2006.
Integrated policy development 68 National policy and funding Planning for future investment under DOI began working on an Integrated initiatives AusLink has begun through a series of Transport Planning Practice Note to Victoria signed the Intergovernmental corridor strategies, jointly agreed and support proponents of major projects Agreement on Surface Transport Security developed between the federal in preparing integrated transport plans, in June 2005. The Intergovernmental government and the states and consistent with Direction 8.3 of Agreement formalises cooperation territories. A pilot study of the Melbourne Melbourne 2030. The practice note will between Australian governments on to Sydney corridor is being prepared by complement and enhance transport and preventative surface transport security. DOI and the federal government and is safety objectives of Activity Centres and expected to guide further studies. walkable neighbourhoods. In May 2005, Victoria became the first State or Territory to enter into an AusLink In February 2005, DOI’s Secretary took DOI also contributed to the policy Bilateral Funding Agreement with the over the Chair of the Standing Committee statement, A Fairer Victoria, released federal government. Victoria will receive on Transport’s (SCOT) Rail Group. The in 2005, highlighting the importance at least $1.15 billion under the AusLink Rail Group highlights strategic issues of of bus services to provide access to Investment Program over five years from national importance in the rail industry. employment, education and recreation 2004–05. This includes $934.1 million DOI made a substantial contribution to for many people in the community. for construction projects. other SCOT groups, developing National Specific groups who benefit from Guidelines for Transport System reliable local public transport include Significant projects receiving funding Management, national transport data and schoolchildren, teenagers and other under the AusLink plan include: congestion management approaches. young people, the elderly, and people • Geelong Bypass with disabilities.
• Pakenham Bypass Integrating transport policy In 2004–05, DOI contributed to local, DOI contributed to policy formulation State and national projects that • further upgrades of the across government during 2004–05 by supported walking and cycling, Calder Highway providing transport planning expertise for: including: • Dynon Port Rail link • guidelines on transport plans for • working with the City of Knox to • Tottenham to Footscray rail upgrade. major developments develop their Knox Pedestrian Plan
• subdivision design guidelines • sponsor support and a major contribution towards the Walk21 • the Transit Cities program Conference taking place in • the development of health initiatives Melbourne in October 2006 to encourage walking and cycling • the renewed National Cycling • local government structure plans Strategy.
• other advice pertaining to specific precincts (for example, the Southbank Structure Plan), to ensure the integration of transport and land-use objectives.
69 DOI Annual Report 2004–05 Coordinated policy advice DOI’s policy advice processes were reviewed by the Auditor-General (AG) and reported in April 2004. The AG found that policy advice was professionally developed and of a good quality and recommended some improvements to the way consultation is managed, treatments of risk, and knowledge management. DOI has accepted these recommendations and is implementing initiatives in response.
DOI surveyed the main stakeholders and customers of its policy advice to find out how effective its coordination of this advice has been. This survey will become a regular practice, with performance reported quarterly. DOI monitors ministerial satisfaction with policy advice through regular contact between senior departmental staff and ministerial offices.
Integrated policy development 70 building Organisational capability OUTCOME 9:
OUTCOME 9: Organisational capability building
Build DOI’s capability and capacity to provide high-quality, strategic advice; responsive, accessible and efficient services; and sound development, assessment and delivery of large public infrastructure projects.
Case study: Deborah Chemke
“I have never experienced a professional development program quite like this and I really got a lot out of it. Each of us learned about our preferred ways of thinking…It’s very accurate and is incredibly useful when it comes to working in and leading teams of people.” Outcome 9: Organisational capability building
Organisational capability building is Key achievements Human resource management central to, and underlies, the successful The Human Resources Management achievements of all of DOI’s outcome Strengthening workforce Branch was strengthened by the groups. Capability building continues capabilities appointment of a number of experienced to be a key driver within the DOI People human resources specialists and DOI has developed and delivered Strategy 2004-06 and there is an through the implementation of a programs and initiatives enhancing ongoing emphasis on developing and ‘business partnering’ model. A key focus DOI’s capability to deliver the delivering programs which enhance the of ‘business partnering’ is the provision Government’s infrastructure and skills-base of all staff. of high-level and strategic human service commitments. Providing targeted learning and resource account management services, development is a key priority, with an During 2004–05 the following activities on-site at divisional level, to enhance a emphasis on management development, have resulted in improved workforce mutual understanding of people policy development, and project capabilities within DOI: management activities and practices. planning and management. Strategic recruitment and retention of staff with People Strategy 2004–06 Corporate services high-level professional and technical The Department’s People Strategy The Executive and Legal Branch was skills is also a priority. 2004–06 aims to build organisational strengthened by the appointment of a capability, motivate people to achieve number of experienced specialists to DOI is committed to achieving and improve people management. enhance the quality of legal advice government objectives in providing and Specific achievements in 2004–05 provided across DOI. managing public infrastructure, included: especially the negotiation of commercial In April 2005, DOI established an agreements to deliver value-for-money • development of a Capability Audit and Assurance Branch to assist to the community, managing complex Framework for DOI to underpin its Audit Committee and to support commercial matters and dealing with recruitment, performance and advise the Secretary on internal major private-sector organisations. management and learning activities audit matters.
DOI’s initiatives to build organisational • development and implementation A comprehensive review of the extent, capability provide indirect but vital of leadership and management value and complexity of procurement support to the Government’s Growing development programs and contract management activities Victoria Together commitments around: was undertaken across the organisation. • establishment of a policy skills sound financial management; growing The purpose of the review was to course and linking all of Victoria; creating more identify the specific competencies jobs and thriving, innovative industries • implementation of a DOI-wide needed, the personnel involved, and across Victoria; safe streets, homes and rotation scheme and a revised the requirements for training and workplaces; and building cohesive mentoring program. development. The review findings will communities and reducing inequalities. be used to support the ongoing development of DOI staff involved in Key achievements during 2004–05 procurement. relating to the Organisational Capability Building outcome are outlined below.
Organisational capability building 72 Supporting business priorities Case Study: Deborah Chemke A wide range of specialist and advisory I found aspects of the DOI Leading People Program very confronting, particularly corporate support services were two of the practical role-play activities, and I think other participants did too. They provided across a broad range of forced us, through direct experience, to learn some hard, but important lessons business priorities during the year. about effective leadership and communication.
Business solutions I have never experienced a professional development program quite like this and I really got a lot out of it. Each of us learned about our preferred ways of thinking – The provision of business solutions to through what is known as the Hermann Brain Dominance Instrument (HBDI). It’s DOI divisions involved: very accurate and is incredibly useful when it comes to working in and leading • delivering a streamlined reporting teams of people. solution for capital projects, Since completing the Program, everyone has been openly talking about their HBDI reducing the time and effort required profiles and discussing how they prefer to think and work. It has helped me to to prepare standardised capital realise that everyone has different ways of operating that are ‘programmed in’, not project reports just by their personality, but by the way they use their brain. • developing solutions to support I am much more forgiving and understanding of others as a result, and it puts the MSV’s business requirements, with onus back on me to think about how to adjust my approach to different people, a focus on the operational needs of including my managers. a mobile workforce, consequently, MSV now operates the Australian This awareness is useful not only for dealing with colleagues, but for all of the people ‘best practice’ approach to you need to influence outside the Department – stakeholders, industry bodies, managing and reporting marine company executives, decision makers. My job involves convincing the heads of IT safety incidents companies to invest in Victoria, so what I’ve learned has been invaluable in that regard.
• conducting a ‘health check’ of all Deborah Chemke corporate systems and providing Manager, ICT Investment and Business Development, Multimedia Victoria advice to guide DOI investment in new and replacement systems. systems to improve services – implementation of intrusion (including the introduction of a detection and prevention tools Information and communication Service Management Framework technology – piloting a web-content filtering and IT Project Management Maturity) service A DOI ICT Business Strategy was involving training, development of IT produced and implemented. The skills, and defining standards for key – activities to improve technical supporting programs have resulted project delivery areas security in closer alignment between ICT • participation in the development of investment and DOI’s business • enhancing the focus on IT policies by the Victorian Government capability. governance, achieving a high level of maturity through the introduction Spatial Committee, and thereby of governance arrangements that contributing to the more efficient Improving corporate processes, reflect the shared services nature of management and deployment of systems and knowledge operating relationships spatial data across government A range of significant reviews were • improving ICT security for DOI from • development of a Procurement undertaken across DOI to enhance, internal and external threats through Competencies Framework in the refine and maintain sound corporate a program of works encompassing: context of the DOI People Strategy systems and processes. As a result, a number of key strategy improvements – development of information IT • inclusion of a DOI Risk Management were implemented, including: security policies Policy, Framework and Profile into all of DOI’s project development and • streamlining ICT operations and – implementation of anti-spam filters management activities project delivery practices and
73 DOI Annual Report 2004–05 • system enhancements to support The following examples highlight some Ministerial business and the of the activities that were undertaken management of Freedom of within the shared services framework information (FOI) reporting and during 2004–05: requests • established service agreements with • delivery of a process across DOI to all major Corporate Information oversee the transition of the current Technology Services (CITS) Australian accounting standards to customer groups the Australian Equivalent • provided a high level of support for International Financial Reporting the emerging OCIO Standard (AIFRS) • sponsored Shared Services Cluster • extensive development and arrangements, resulting in greater enhancements to streamline DOI’s cooperation in shared information electronic document and records technology services across the management needs. entire Victorian Government
• was an early adopter in the roll-out Shared services of the new TPAMS voice and Ongoing efforts have been made to telecommunication capabilities explore opportunities for DOI to share within DOI, resulting in improved relevant systems and support services interoperability in government and with other government agencies. During reduced operating costs. 2004–05 a number of additional customers were added to the shared . service arrangements. Currently, DOI is providing varying levels of corporate services including IT services, payroll, financial management, accommodation and records management to the following departments and agencies under a shared services arrangement:
•DVC
• DSE
• SSSA
• SEITA
•TTA
• OHC
• senior citizens (DVC).
Organisational capability building 74 STATEMENTS FINANCIAL
FINANCIAL STATEMENTS Contents
Accountable Officer’s and Chief Finance Officer’s Declaration 77
Auditor-General’s Report 78
Statement of financial performance 79
Statement of financial position 80
Statement of cash flows 81
Index for ‘Notes to the Financial Statements’ 82
Notes to the Financial Statements 83 – 134
These financial statements cover the Department of Infrastructure, the Secretary to the Department of Infrastructure and the Victorian Rail Services Pty Ltd.
The Department of Infrastructure is a government department of the State of Victoria.
Its principal address is: Department of Infrastructure 80 Collins Street, Melbourne Victoria Australia 3000
A description of the nature of the department’s operations and its principal activities is included in the Report of Operations.
For queries in relation to our financial statements, please call 9655 6666.
Financial Statements 76 77 DOI Annual Report 2004–05 Financial Statements 78 Statement of financial performance for the year ended 30 June 2005
Notes 2005 2004 $’000 $’000
Revenue from ordinary activities Output appropriations 5,6 2,800,742 2,503,977 Special appropriations 5,6 1,114 56 Other revenue and revenue from other parties 5 235,283 540,101
Total revenue 3,037,139 3,044,134
Expenses from ordinary activities Rail services 7 1,302,013 1,492,856 Road services 725,494 735,009 Bus services 494,263 469,205 Other expenses from ordinary activities 8 165,072 148,656 Employee benefits 9 62,970 54,618 Value of assets written down/disposed of 10 29,515 19,231 Assets transferred to other agencies free of charge 11 17,184 448,401 Capital asset charge 9,929 12,351 Depreciation and amortisation expense 9 12,382 9,939
Total expenses 2,818,822 3,390,266
Net result 20(b) 218,317 (346,132) Net increase in asset revaluation reserve 20(c) 2,115 50,782
Total changes in equity other than those resulting from transactions with the Victorian Government in its capacity as owner on behalf of the Crown 20(d) 220,432 (295,350)
The above statement of financial performance should be read in conjunction with the accompanying notes.
79 DOI Annual Report 2004–05 Statement of financial position as at 30 June 2005
Notes 2005 2004 $’000 $’000
Current assets Cash assets 12 589,119 477,830 Receivables 13 334,441 295,165 Prepayments 695 775 Inventories 14 6,813 3,142
Total current assets 931,068 776,912
Non-current assets Receivables 13 2,045 12,594 Inventories 14 694 3,327 Infrastructure, property, plant and equipment 15 185,098 228,822 Intangible assets 16 23,759 7,067
Total non-current assets 211,596 251,810
Total assets 1,142,664 1,028,722
Current liabilities Payables 17 353,556 358,988 Loans and advances from Victorian General Government 15,300 15,300 Provisions for employee benefits 18 7,002 6,137 Lease liabilities 206 48
Total current liabilities 376,064 380,473
Non-current liabilities Provisions for employee benefits 18 11,726 10,970 Other provisions 19 186,691 175,059 Prepaid lease income 1,912 1,979 Lease liabilities 1,261 361
Total non-current liabilities 201,590 188,369
Total liabilities 577,654 568,842
Net assets 565,010 459,880
Equity Contributed capital 1(u), 20(a) 439,255 554,557 Accumulated surplus/(deficit) 20(b) 19,928 (198,389) Asset revaluation reserve 20(c) 105,827 103,712
Total equity 565,010 459,880
The above statement of financial position should be read in conjunction with the accompanying notes.
Financial Statements 80 Statement of cash flows for the year ended 30 June 2005
Notes 2005 2004 $’000 $’000
Cash flows from operating activities Receipts from Victorian government 2,784,917 2,450,888 Receipts from other entities 115,014 86,236 Payments to suppliers and employees (2,964,005) (2,829,454) Goods and Services Tax recovered from the ATO* 174,923 159,638 Goods and Services Tax paid to the ATO* (22,224) (12,565) Interest received 3,185 6,820 Other revenue 109,942 71,561 Capital asset charge (9,929) (12,351)
Net cash inflow (outflow) from operating activities 29 191,823 (79,227)
Cash flows from investing activities Payments for property, plant and equipment (including work in progress) (15,831) (112,995) Payments for land held for resale (1,038) (3) Payments for software (including work in progress) (4,427) (3,280) Advances received from clients/sponsor agencies 315,582 99,120 Disbursements to contractors/agencies (299,405) (100,978)
Net cash (outflow) from investing activities (5,119) (118,136)
Cash flows from financing activities Proceeds of capital contribution from Victorian Government 301,347 490,337 Payments of capital contribution to VicTrack (320,415) (326,087) Payments of capital contribution to State Government (55,418) (36,608) Transfer from Public Transport Corporation - 33,828 Proceeds from borrowings 1,185 409 Repayment of finance liabilities (126) -
Net cash (outflow) inflow from financing activities (73,427) 161,879
Net increase (decrease) in cash held 113,277 (35,484) Cash at the beginning of the financial year 477,830 513,314 Transfer to PoMC** (1,988) -
Cash at the end of the financial year 12 589,119 477,830 Financial Instruments 21 Non-cash financing and investing activities 32
* ATO – Australian Taxation Office ** PoMC – Port of Melbourne Corporation
The above statement of cash flows should be read in conjunction with the accompanying notes.
81 DOI Annual Report 2004–05 Index for ‘Notes to the Financial Statements’
Note Page
1 Summary of significant accounting policies 83–88 2 Output groups of the Department 89–95 3 Restructuring of administrative arrangements 96 4 Major Projects Victoria 97–98 5 Revenue 99 6 Summary of compliance with annual parliamentary appropriations 100–101 7 Rail services 102 8 Other expenses from ordinary activities 102 9 Result from ordinary activities 103 10 Value of assets written down/disposed of 103 11 Assets transferred to other agencies free of charge 104 12 Cash assets 104 13 Receivables 105 14 Inventories 105 15 Infrastructure, property, plant and equipment 106–107 16 Intangible assets 108 17 Payables 108 18 Provisions 109 19 Other provisions 109 20 Equity and movements in equity 110 21 Financial instruments 111–112 22 Ministers and Accountable Officers 113 23 Remuneration of executives 114 24 Remuneration of auditors 114 25 Contingent liabilities 115–117 26 Contingent assets 118 27 Commitments for expenditure 119–121 28 Employee benefits 122–123 29 Reconciliation of the net result for the reporting period to net cash inflow from operating activities 124 30 Consolidation: Victorian Rail Services Pty Ltd 125 31 Administered items 126–130 32 Non-cash financing and investing activities 130 33 Annotated receipts agreements 131 34 Trust account balances 131 35 Impact of adopting Australian equivalents to International Financial Reporting Standards 132–134
Financial Statements 82 Note 1. Summary of significant accounting policies
This general-purpose financial report has been prepared Details regarding the commitments and franchisee on an accrual basis in accordance with the Financial arrangements are referred to in notes 25, 26 and 27. Management Act 1994, Australian Accounting Standards, V/Line Passenger rail services reverted to government Statements of Accounting Concepts and other authoritative control with a new franchise arrangement established pronouncements of the Australian Accounting Standards for the period from 1 October 2003 to 29 October 2006. Board, and Urgent Issues Group Consensus Views. The country and metropolitan infrastructure networks It is prepared in accordance with the historical cost convention, existing at the time of the franchise agreements were except for certain assets and liabilities which, as noted, are at leased by the Victorian Rail Track Corporation (VicTrack) valuation. The accounting policies adopted, and the classification to the Director, who has subleased the infrastructure to and presentation of items, are consistent with those of the the operators for the duration of each franchise. Leases previous year, except where a change is required to comply on the infrastructure and enhancements continue under with an Australian Accounting Standard or Urgent Issues partnership arrangements. Group Consensus View. Comparative amounts are presented and classified on a basis consistent with the current year. In accordance with the contractual provisions and government policy, works undertaken by the private For annual reporting periods ending on or after 30 June operators to enhance, modify or add to the infrastructure, 2005, AASB 1047 Disclosing the Impacts of Adopting vests with the Director. The Department of Treasury and Australian Equivalents to International Financial Reporting Finance has advised that while the Director maintains Standards requires disclosure of any known or reliably ownership of the infrastructure enhancement, all rail estimable information about the impacts on the financial leasehold improvement infrastructure assets created as report had it been prepared using the AIFRS or if the impacts a result of capital grants and other subsidies paid to all are not known or reliably estimable, a statement to that franchisees are controlled and reported by VicTrack. effect. Refer to note 35 for further information. (ii) Victorian Rail Services Pty Ltd (VRS)
(a) Reporting entity In December 2002, National Express advised that The financial statements include all the controlled activities of it would withdraw from its train and tram franchises the Department of Infrastructure. effective from 23 December 2002. The Government appointed receivers and managers to the National The reporting entity includes: Express train and tram franchises, in order to protect (i) Director of Public Transport government interests and to ensure the continuation of services. The Director of Public Transport (‘the Director’) is an office established by section 8 of the Transport Act 1983 (‘the Act’). VRS was formed to assume most of the head office The Director’s powers and functions are set out in section corporate functions of National Express Group Australia 9 of the Act and include responsibility for the general (NEGA). The sole shareholder of VRS is the Director of administration of the tram and train service contracts Public Transport. The financial statements of VRS as at provided by private operators under franchise 30 June 2005 have been consolidated with the arrangements. The Director is part of the Department. Department’s financial report. Refer to note 30.
The Director, on behalf of the Crown, had entered into On 15 November 2004, the directors of VRS placed a number of franchise agreements with private operators the company into voluntary liquidation and appointed for periods ranging from 10 to 15 years whereby the McGrath Nicol and Partners to liquidate all the assets of operation of Victoria’s tram and train services transferred the business. The wind-up of the company has occurred from the State-owned rail corporations to those operators and all liabilities and creditors have been paid. The in August 1999. Most of these arrangements were company has applied to the Australian Securities and terminated on 18 April 2004 and new partnership Investments Commission for deregistration and is arrangements were put in place. The new agreements are currently awaiting for that to occur. for a period of five years and include subsidies and other payments to the operators over the life of the agreements.
83 DOI Annual Report 2004–05 Note 1. Summary of significant accounting policies (continued)
(iii) Secretary to the Department of Infrastructure Other administered activities on behalf of parties external to the Victorian Government In accordance with approval received under the Financial Management Act 1994, the Department’s annual report The Department has responsibility for transactions and and financial statements incorporate the ‘Secretary to balances relating to administered funds on behalf of third the Department of Infrastructure’ as a body corporate parties external to the Victorian Government. Revenues, created under the Project Development and Construction expenses, assets and liabilities administered on behalf of Management Act 1994. The body corporate activities third parties are not recognised in these financial include the functions performed by Major Projects statements as they are administered on a fiduciary and Victoria. All activities are reflected as controlled custodial basis, and therefore not controlled by the transactions except project development and Department (refer note 31). construction management activities for sponsor agencies, and where sales and subsequent proceeds Non-current assets are received, in which case they are reflected as All non-current assets controlled by the Department (including administered transactions (refer note 4). Crown land) are reported in the statement of financial position. (iv) Station Pier – Committee of Management Non-current assets which the Department administers on behalf of the Victorian Government are reported as On 17 May 2001, a Committee of Management that is administered resources (refer note 31). controlled by the Department was formed for the management of the Station Pier area. The Committee’s functions included improving, maintaining control, and (b) Objectives and funding granting leases over the Station Pier land and buildings. The Department’s objectives for the period 1 July 2004 to The activities of the Committee are incorporated into the 30 June 2005 were: financial statements of the Department. 1. Public safety and security: improve safety in the road, On I February 2005, the Port Services Act 1995 was public transport, marine and energy sectors and reduce amended, which abolished the Station Pier Committee the incidence, severity and cost of accidents; and of Management and transferred the Committee’s maintain the security of public infrastructure assets and liabilities to the Port of Melbourne 2. Infrastructure delivery and management: deliver cost- Corporation (refer note 3(i)). effective investment in, and management of, public Administered resources infrastructure and major government projects in Victoria
The Department administers but does not control certain 3. Access and mobility: plan and deliver a sustainable resources on behalf of the Victorian Government. It is public transport system and road network that improves accountable for the transactions involving these people's mobility and access to services while managing administered resources, however, it does not have the the externalities of travel demand discretion to deploy these resources for the achievement 4. Connected Victoria: deliver an innovative, accessible of the Department’s objectives. For these resources, the information and communication technology environment Department acts only on behalf of the Victorian Government. that shares the benefits of new technologies across the Administered resources are accounted for using the accrual community and drives economic growth basis of accounting. 5. Rural and regional development: boost prosperity and Transactions and balances relating to these administered enhance rural and regional communities through the resources are not recognised as departmental revenues, provision of improved transport, energy, and information expenses, assets or liabilities and are disclosed in the and communication technology infrastructure and services applicable output schedules (refer note 31). 6. Seamless freight and logistics system: plan and deliver infrastructure and a regulatory regime to improve productivity and safety in the freight and logistics sector
Notes to the financial statements for the year ended 30 June 2005 84 while reducing environmental and amenity impacts Parliament and applied to the purposes defined under the caused by the movement of freight relevant appropriations act. Additionally, the Department is permitted under section 29 of the Financial Management Act 7. Secure and sustainable energy supply: provide policy 1994 to have certain receipts annotated to the annual advice and implement programs to deliver an energy appropriation. The receipts which form part of a section 29 supply to the State that is secure and efficient, agreement are received by the Department and paid into the accessible and affordable, safe and reliable, and consolidated fund as administered revenue (note 31). At that increasingly sustainable point, section 29 provides for an equivalent amount to be 8. Integrated policy development: to provide coordination added to the annual appropriation. Examples of receipts within the portfolio, with other departments and agencies which can form part of a section 29 agreement are and to manage relations with the federal government to Commonwealth-specific purpose grants and the proceeds achieve policy objectives within transport, energy and ICT from the sale of assets. consistent with the overall planning strategies and other Amounts disclosed as revenue are, where applicable, net policies of the Victorian Government of returns, allowances and duties and taxes. Revenue is 9. Organisational capability building: build the Deaprtment’s recognised for each of the Department’s major activities capability and capacity to provide high-quality, strategic as follows: advice; responsive, accessible and efficient services; and (i) Special appropriation sound development, assessment and delivery of large public infrastructure projects. Under section 213A(4) Transport Act 1983, revenue related to administrative costs associated with ticket The Department is predominantly funded by accrual-based infringements is appropriated to the Department. parliamentary appropriations for the provision of outputs. (ii) Output revenue
(c) Outputs of the Department Revenue from the outputs the Department provides to Information about the Department’s output groups, and the government is recognised when those outputs have been expenses, revenues, assets and liabilities which are reliably delivered and the relevant Minister has certified their attributable to those output groups, is set out in the Output delivery in accordance with specified performance criteria. Groups Schedule (refer note 2). Information about expenses, (iii) Public Transport Fund revenues, assets and liabilities administered by the Department are provided in the schedule of administered All revenue received by the Director of Public Transport is expenses and revenues and the schedule of administered retained in the Public Transport Fund pursuant to section assets and liabilities (refer note 31). 11 of the Transport Act. Transport-related revenue, including bus and rail revenue, is recognised in the period to which it is received by the Department (refer (d) Acquisitions of assets note 5). Where service obligations overlap reporting All acquisitions of assets are measured at the acquisition periods, revenue is recognised in the reporting period date at the cost of acquisition. Cost of acquisition is the in which the service is delivered if it is reciprocal. purchase consideration plus incidental costs directly (iv) Commonwealth grants attributable to the acquisition. Grants payable by the Commonwealth Government Assets acquired at no cost, or for nominal consideration, are are recognised as administered revenue when the initially recognised at their fair value at the date of acquisition. Department gains control of the underlying assets on behalf of the State (refer note 31). Where grants are (e) Revenue recognition reciprocal, revenue is recognised when performance All revenue received by the Department is generally required occurs under the grant. Non-reciprocal grants are to be paid into the consolidated fund. recognised as revenue when the grant is received or receivable. Conditional grants may be reciprocal or Revenue becomes controlled by the Department when it is non-reciprocal depending on the terms of the grant. appropriated from the consolidated fund by the Victorian
85 DOI Annual Report 2004–05 Note 1. Summary of significant accounting policies (continued)
(v) Fines and fees All classes of assets (except plant and equipment) are subject to a progressive revaluation over the period As the Department does not gain control over assets commencing from I July 2002 with a completion date arising from fines and fees, no revenue is recognised. of 30 June 2005. The Department collects these amounts on behalf of the Crown. Accordingly, the amounts are disclosed as Revaluation increments are credited directly to the asset revenues in the schedule of administered revenues and revaluation reserve, except where the increment reverses expenses (refer note 31). a revaluation decrement, in respect of that class of asset, previously recognised as an expense in net result. Where (vi) Other revenue the exception applies, the increment is recognised Revenue from other departments is recognised when it is immediately as revenue in the net result. received. Interest income is recognised when it is earned. Revaluation decrements are recognised immediately as All other amounts of revenue over which the Department expenses in the net result, except where a credit balance does not gain control are disclosed as administered revenue exists in the asset revaluation reserve in respect of the in the schedule of administered revenues and expenses. same class of assets, in which case, the decrements are debited directly to the asset revaluation reserve. (f) Receivables Revaluation increments and decrements are offset against All debtors are recognised at the amounts receivable as they one another within a class of non-current assets. are due for settlement at no more than 30 days from the date of recognition. (i) Depreciation of non-current physical assets
Collectability of debtors is reviewed on an ongoing basis. Depreciation is calculated on a straight-line basis to write Debts which are uncollectible are written off. A provision off the net cost or revalued amount of each depreciable for doubtful debts is raised when some doubt as to asset (excluding land) over its expected useful life to the collection exists. Department. Estimates of remaining useful lives are made on a regular basis for all assets, with annual reassessments (g) Inventories for material items. The expected useful lives, which are unchanged from 2003–04, are as follows: Land for resale is stated at the lower of cost and net realisable value. Cost includes expenditure incurred in Asset category Expected useful acquiring the inventory and bringing it to its existing life (years) condition. Net realisable value is determined on the basis of the Department’s normal selling return. Expenses associated Buildings 55 with marketing, selling and distribution are deducted to Plant and equipment determine net realisable value. Furniture and fittings 3 to 15 Computer equipment 3 (h) Revaluations of non-current assets Computer printers 4 Office machines 5 Subsequent to the initial recognition as assets, non-current Rolling stock 30 physical assets other than plant and equipment are measured at fair value. Plant and equipment are measured at cost. Infrastructure assets Revaluations are made with sufficient regularity to ensure that Station Pier 30 to 50 the carrying amount of each asset does not differ materially Road works 55 to 60 from its fair value at the reporting date. Revaluations are Bridges, structures and tunnels 90 to 115 assessed annually and supplemented by independent Sound barriers 55 assessments by the Valuer-General at least every three Mechanical and electrical equipment 20 years. Revaluations are conducted in accordance with Landscape and urban design 20 the Department of Treasury and Finance’s Policy Paper Revaluation of Non-current Physical Assets (refer note 15).
Notes to the financial statements for the year ended 30 June 2005 86 Where items of infrastructure, plant and equipment have (o) Goods and Services Tax systems changes separately identifiable components that are subject to regular Revenues, expenses and assets are recognised net of GST replacement, those components are assigned useful lives except where the amount of GST incurred is not recoverable, distinct from the item of infrastructure assets and plant and in which case it is recognised as part of the cost of acquisition equipment to which they relate. of an asset or part of an item of expense. The net amount of GST recoverable from, or payable to, the Australian Taxation (j) Leasehold improvements Office (ATO) is included as part of receivables or payables in The cost of improvements to or on leasehold properties is the statement of financial position. The GST component of a amortised over the unexpired period of the lease or the receipt or payment is recognised on a gross basis and the estimated useful life of the improvements to the Department, amounts paid to and received from the ATO are reflected in whichever is the shorter. Leasehold improvements of office the statement of cash flows in accordance with Accounting assets are amortised over 10 years. Standard AAS 28 ‘Statement of Cash Flows’.
(k) Leased non-current assets (p) Employee benefits
A distinction is made between finance leases which (i) Wages, salaries and annual leave effectively transfer from the lessor to the lessee substantially Liabilities for wages and salaries and, annual leave all the risks and benefits incident to ownership of leased non- expected to be settled within 12 months of the reporting current assets, and operating leases under which the lessor date are recognised in respect of employees’ services up effectively retains substantially all such risks and benefits. to the reporting date and are measured as the amounts Operating lease payments are recognised in the statement expected to be paid when the liabilities are settled. of financial performance in the periods in which they are Liabilities for non-accumulating sick leave are recognised incurred, as this represents the pattern of benefits derived when the leave is taken and measured at the rates paid from the leased assets. or payable.
(ii) Long-service leave (l) Non-current assets constructed by the Department The liability for long-service leave expected to be settled within 12 months of the reporting date is recognised as The cost of non-current assets constructed by the a current liability in the provision for employee benefits Department includes the cost of all materials used in and is measured in accordance with (i) above. The construction, direct labour on the project and an appropriate liability for long- service leave expected to be settled proportion of variable and fixed overhead. more than 12 months from the reporting date is recognised in the provision for employee benefits and (m) Trade and other creditors (payables) measured as the present value of expected future payments to be made in respect of services provided These amounts represent liabilities for goods and services by employees up to the reporting date. Consideration provided to the Department prior to the end of the financial is given to expected future wage and salary levels, year and which are unpaid. The amounts are unsecured and experience of employee departures and periods of are usually paid within 30 days of recognition. service. Expected future payments are discounted using interest rates on national government-guaranteed (n) Maintenance and repairs securities with terms to maturity that match, as closely The costs of maintenance of infrastructure, property, plant as possible, the estimated future cash outflows. and equipment are charged as expenses as incurred, except (iii) Superannuation where they extend the original useful life of the relevant asset to the Department, and where they relate to the replacement The amount charged to the statement of financial of a component of an asset, in which case the costs are performance in respect of superannuation represents capitalised and depreciated in accordance with note 1(i). the contributions made by the Department to the Other routine operating maintenance, repair costs and minor superannuation funds (refer note 28). renewals are also charged as expenses as incurred.
87 DOI Annual Report 2004–05 Note 1. Summary of significant accounting policies (continued)
(iv) Employee benefit on-costs (s) Capital asset charge
Employee benefit on-costs, including payroll tax, are The capital asset charge is imposed by the Department of recognised and included in employee benefit liabilities Treasury and Finance and represents the opportunity cost and costs when the employee benefits to which they of capital invested in the non-current physical assets used relate are recognised as liabilities. in the provision of outputs. The charge is calculated on the carrying amount of non-current physical assets. (q) Intangible assets (t) Resources provided and received free of (i) Software charge or for nominal consideration Costs associated with the acquisition or development Contributions of resources and resources provided free of of internal–use computer software are capitalised where charge are recognised at their fair value. Contributions in the they exceed $500,000 and are amortised on a straight- form of services are only recognised when a fair value can be line basis over the periods of the expected benefit, which reliably determined and the services would have been varies from three to five years. This is to comply with purchased if not donated. FRD 4 Internal Use Computer Software Costs as issued under the Financial Management Act 1994. (u) Contributed capital (ii) Web site costs Consistent with UIG Abstract 38 Contributions by Owners Costs in relation to web sites controlled by the made to Wholly-Owned Public Sector Entities and FRD 2 Department are charged as expenses in the period Contributed Capital, as issued under the Financial in which they are incurred unless they relate to the Management Act 1994, appropriations for additions to net acquisition of an asset, in which case they are capitalised assets have been designated as contributed capital. Other and amortised over their period of expected benefit. transfers that are in the nature of contributions or distributions Generally, costs in relation to feasibility studies during the of capital have also been designated as contributed capital. planning phase of a web site, and ongoing costs of maintenance during the operating phase are considered (v) Rounding of amounts to be expenses. Costs incurred in building or enhancing a web site, to the extent that they represent probable Amounts in the financial report have been rounded to the future economic benefits controlled by the Department nearest thousand dollars or, in other cases, to the nearest that can be reliably measured, are capitalised as an asset dollar. and amortised over the period of the expected benefits which vary from three to five years.
(r) Cash
For the purposes of the statement of cash flows, cash includes short-term deposits that are readily convertible to cash on hand and are subject to an insignificant risk of changes in value, net of outstanding cheques yet to be presented by the Department’s suppliers and creditors (see note 12).
Notes to the financial statements for the year ended 30 June 2005 88 Note 2. Output groups of the Department
A description of each output group undertaken by the regional and rural areas, and aim to optimise the use of Department during the year ended 30 June 2005 and the existing transport infrastructure across the State. departmental and government outcomes to which these output groups relate are summarised as follows: Regional and rural tansport services
These outputs involve the delivery of quality public transport Output groups services to regional and rural areas of Victoria through contractual arrangements with private operators and V/Line Infrastructure planning and policy Passenger. These services include intrastate and interstate These outputs involve the planned delivery of transport rail services, route and school bus services. Contracts with infrastructure and travel management strategies, port service providers are managed to ensure that service delivery development strategies and energy policy services aimed is in accordance with contractually agreed standards and at improving the economic and social capacity of Victoria. that committed investment levels of rolling stock and new Key elements include integrated transport planning in regional, buses are delivered. rural and metropolitan areas; developing a forward infrastructure investment strategy; travel demand management Regional and rural transport infrastructure initiatives such as the TravelSMART program; initiatives to These outputs involve the development and maintenance of achieve the Government’s ports policy goals; and the regional and rural transport networks by implementing major provision of energy policy advice to government to secure a road projects, regional and rural rail projects and monitoring safe, sustainable and cost-effective energy supply to the State. the quality of rail infrastructure as defined in the contracts with private operators and V/Line Passenger. They facilitate Information and communication technologies (ICT) the movement of goods and passengers in an efficient, safe and multimedia and timely manner. These outputs focus on a range of activities designed to enhance Victoria’s strengths in the key areas of ICT. In addition Metropolitan transport services to the strong policy and strategy development role, a number These outputs involve the delivery of a quality public of strategic programs are being delivered in the areas of transport service to the metropolitan area through contractual eGovernment infrastructure, industry and community arrangements with private operators. These include rail, development. These activities include the continued tram and bus services. Contracts with private operators are implementation of the Government’s agenda as outlined in the managed to ensure that service provision is in accordance Growing Tomorrow’s Industries Today, Regional Connections with contractually agreed standards and that the committed and Putting People at the Centre strategies. A priority will be investment levels for rolling stock and new buses are delivered. the continued implementation of the Telecommunications Purchasing and Management Strategy and other Metropolitan transport infrastructure and public telecommunications initiatives, including those directed development projects at improving access to, and the uptake of, broadband. These outputs involve the development and maintenance of Achievements relating to new investments facilitated and metropolitan road networks and the implementation of major announced, and jobs derived from investments facilitated, civic and road projects, the management and delivery of will continue to be reported through the Investment major public construction and land development projects, Facilitation and Attraction output of the Department of and the development of metropolitan train and tram Innovation, Industry and Regional Development (DIIRD). infrastructure as set out in the contracts with the private operators. They deliver major parts of the transport network Ports and intermodal gateways in the metropolitan area and are aimed at facilitating the These outputs involve initiatives to improve the efficiency, movement of goods and passengers in an efficient, timely accessibility and usability of the transport system by and safe manner to their destinations. addressing the interfaces of different components of this multifaceted system. They cover the connections between ports, rail and road transport and airports in metropolitan,
89 DOI Annual Report 2004–05 Note 2. Output groups of the Department (continued)
Transport Safety and Accessibility 8. Integrated policy development: to provide coordination within the portfolio with other departments and agencies These outputs involve safety initiatives for road, public and to manage relations with the federal government to transport and waterway users. This is provided through the achieve policy objectives within transport, energy and application of performance-based standards to regulate ICT consistent with the overall planning strategies and transport providers, and to reduce the cost of regulations on other policies of the Victorian Government. business, while raising safety and access levels for the community through improved transport regulation, reform, 9. Organisational capability building: build DOI’s capability education, environmental response strategies and prevention and capacity to provide high-quality, strategic advice; programs. It includes services to improve accessibility and responsive, accessible and efficient services; and sound subsidised taxi travel for those unable to use other public development, assessment and delivery of large public transport. infrastructure projects.
Departmental outcomes (refer also Note 1(b)) Government Outcomes
1. Public safety and security: improve safety in the road, 1. More quality jobs and thriving, innovative industries public transport, marine and energy sectors and reduce across Victoria the incidence, severity and cost of accidents; and 2. Growing and linking all of Victoria maintain the security of public infrastructure. 3. High-quality, accessible health and community services 2. Infrastructure delivery and management: deliver cost- effective investment in, and management of, public 4. High-quality education and training for lifelong learning infrastructure and major government projects in Victoria. 5. Protecting the environment for future generations 3. Access and mobility: plan and deliver a sustainable 6. Efficient use of natural resources public transport system and road network that improves people's mobility and access to services while managing 7. Building friendly, confident and safe communities the externalities of travel demand. 8. A fairer society that reduces disadvantage and respects 4. Connected Victoria: deliver an innovative, accessible diversity information and communication technology environment 9. Greater public participation and more accountable that shares the benefits of new technologies across the government community and drives economic growth. 10. Sound financial management. 5. Rural and regional development: boost prosperity and enhance rural and regional communities through the provision of improved transport, energy, and information and communication technology infrastructure and services.
6. Seamless freight and logistics system: plan and deliver infrastructure and a regulatory regime to improve productivity and safety in the freight and logistics sector while reducing environmental and amenity impacts caused by the movement of freight.
7. Secure and sustainable energy supply: provide policy advice and implement programs to deliver an energy supply to the State that is secure and efficient, accessible and affordable, safe and reliable, and increasingly sustainable.
Notes to the financial statements for the year ended 30 June 2005 90 Output groups* Departmental outcomes IPP ICT & M PIG RRTS RRTI MTS MTI & PDP TSA 1. Public safety and security •-•••••• 2. Infrastructure delivery and management •••••• • • 3. Access and mobility •-•••••• 4. Connected Victoria -•------5. Rural and regional development •••••- - • 6. Seamless freight and logistics system •-•-•- • • 7. Secure and sustainable energy supply •------8. Integrated policy development •-•----- 9. Organisational capability building •••••• • •
Government outcomes 1. More quality jobs and thriving, innovative industries across Victoria •••••• • • 2. Growing and linking all of Victoria •••••• • • 3. High-quality, accessible health and community services ------4. High-quality education and training for lifelong learning ------5. Protecting the environment for future generations •-•••••• 6. Efficient use of natural resources •-•----- 7. Building friendly, confident and safe communities •••••• • • 8. A fairer society that reduces disadvantage and respects diversity ••-••••• 9. Greater public participation and more accountable government ••------10. Sound financial management •••••• • •
* Output groups as published in 2004-05 Budget Paper 3: IPP – Infrastructure Planning and Policy ICT and M – Information and Communication Technology and Multimedia PIG – Ports and Intermodal Gateways RRTS – Regional and Rural Transport Services RRTI – Regional and Rural Transport Infrastructure MTS – Metropolitan Transport Services MTI & PDP – Metropolitan Transport Infrastructure and Public Development Projects TSA – Transport Safety and Accessibility
91 DOI Annual Report 2004–05 Note 2. Output groups of the Department (continued) Output groups schedule – controlled revenue and expenses for the year ended 30 June 2005
Infrastructure Planning ICT and Multimedia Ports and Intermodal Regional and Rural and Policy Gateways Transport Services
2005 2004 2005 2004 2005 2004 2005 2004
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Revenue from ordinary activities Output appropriations 18,800 13,327 42,800 43,980 23,700 26,447 403,000 360,223 Special appropriations ------Revenue from other parties 100 629 2,204 3,540 - - 6,356 15,660
Total revenue 18,900 13,956 45,004 47,520 23,700 26,447 409,356 375,883 Expenses from ordinary activities Rail services ----16,371 7,012 165,829 151,942 Road services ------Bus services -----2,186 196,809 186,078 Other expenses from ordinary activities 12,167 8,786 34,468 23,588 3,393 11,067 8,524 13,625 Employee benefits 5,990 6,144 8,899 7,539 1,480 2,685 5,686 7,395 Value of assets written down/ disposed of 1 23 9,545 3 24 1,287 347 - Assets transferred to other agencies free of charge -----15017,184- Capital asset charge 19 59 59 64 1,571 3,005 1,490 1,040 Depreciation and amortisation expense 113 224 1,328 288 720 718 1,951 1,165
Total expenses 18,290 15,236 54,299 31,482 23,559 28,110 397,820 361,245
Net result 610 (1,280) (9,295) 16,038 141 (1,663) 11,536 14,638
Net (decrease) increase in asset revaluation reserve ----(9,298) 2,929 - -
Total revenues, expenses and revaluation adjustments recognised directly in equity ----(9,298) 2,929 - -
Total changes in equity other than those resulting from transactions with the Victorian Government in its capacity as owner 610 (1,280) (9,295) 16,038 (9,157) 1,266 11,536 14,638
Notes to the financial statements for the year ended 30 June 2005 92 Regional and Rural Metro Transport Metro Transport Transport Safety Total Transport Infrastructure Services Infrastructure and Accessibility
2005 2004 2005 2004 2005 2004 2005 2004 2005 2004
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
356,500 258,707 1,308,742 1,266,455 492,500 354,459 154,700 180,379 2,800,742 2,503,977 - - 1,114 56 ----1,114 56 - 127 201,666 515,383 21,649 3,250 3,308 1,512 235,283 540,101
356,500 258,834 1,511,522 1,781,894 514,149 357,709 158,008 181,891 3,037,139 3,044,134
44,750 25,555 1,055,415 1,295,120 7,458 7,974 12,190 5,253 1,302,013 1,492,856 265,733 258,747 - - 376,993 370,195 82,768 106,067 725,494 735,009 - - 297,454 280,766 - - - 175 494,263 469,205
4,530 3,695 37,427 22,195 16,115 6,519 48,448 59,181 165,072 148,656 1,553 3,753 22,186 8,926 6,514 5,551 10,662 12,625 62,970 54,618
88 251 2,865 - 14,767 17,550 1,878 117 29,515 19,231
- - - 448,177 - 74 - - 17,184 448,401 102 358 3,510 2,433 2,862 5,101 316 291 9,929 12,351
745 2,586 5,131 2,504 651 952 1,743 1,502 12,382 9,939
317,501 294,945 1,423,988 2,060,121 425,360 413,916 158,005 185,211 2,818,822 3,390,266
38,999 (36,111) 87,534 (278,227) 88,789 (56,207) 3 (3,320) 218,317 (346,132)
- 3,878 - 3,111 8,484 38,220 2,929 2,644 2,115 50,782
- 3,878 - 3,111 8,484 38,220 2,929 2,644 2,115 50,782
38,999 (32,233) 87,534 (275,116) 97,273 (17,987) 2,932 (676) 220,432 (295,350)
93 DOI Annual Report 2004–05 Note 2. Output groups of the Department (continued) Output groups schedule – controlled assets and liabilities for the year ended 30 June 2005
Infrastructure Planning ICT and Multimedia Ports and Intermodal Regional and Rural and Policy Gateways Transport Services
2005 2004 2005 2004 2005 2004 2005 2004
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Current assets Cash assets 20 16 799 648 3,183 2,582 74,709 60,596 Receivables 962 849 537 474 1,019 899 40,646 35,873 Prepayments - 4 - 11 - 2 96 86 Inventories ------
Total current assets 982 869 1,336 1,133 4,202 3,483 115,451 96,555 Non-current assets Receivables - 70 - - - 154 - 1,464 Inventories ------Infrastructure, property, plant and equipment 316 193 1,035 16,668 231 36,754 15,263 10,002 Intangible assets 5 8 8,258 22 9 4 3,407 167 Loans ------
Total non-current assets 321 271 9,293 16,690 240 36,912 18,670 11,633
Total assets 1,303 1,140 10,629 17,823 4,442 40,395 134,121 108,188 Current liabilities Payables 161 1,567 564 34 221 3,463 44,561 38,798 Loans and advances from Victorian General Government ------Provisions for employee benefits 632 479 823 684 227 240 544 627 Lease liabilities 11 4 12 4 - 4 11 -
Total current liabilities 804 2,050 1,399 722 448 3,707 45,116 39,425 Non-current liabilities Provisions for employee benefits 918 767 1,571 1,543 349 413 868 1,299 Other provisions------Prepaid lease income ------Lease liabilities 67 35 75 31 3 23 69 -
Total non-current liabilities 985 802 1,646 1,574 352 436 937 1,299
Total liabilities 1,789 2,852 3,045 2,296 800 4,143 46,053 40,724
Net assets (486) (1,712) 7,584 15,527 3,642 36,252 88,068 67,464
Notes to the financial statements for the year ended 30 June 2005 94 Regional and Rural Metro Transport Metro Transport Transport Safety Total Transport Infrastructure Services Infrastructure and Accessibility
2005 2004 2005 2004 2005 2004 2005 2004 2005 2004
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
55,475 44,995 298,073 241,765 156,457 126,901 403 327 589,119 477,830 44,994 39,709 162,473 143,393 55,009 48,549 28,801 25,419 334,441 295,165 - 72 584 408 15 128 - 64 695 775 ----6,813 3,142 - - 6,813 3,142
100,469 84,776 461,130 385,566 218,294 178,720 29,204 25,810 931,068 776,912
- 2,267 2,045 5,570 - 1,610 - 1,459 2,045 12,594 ----6943,327 - - 694 3,327
1,263 3,214 24,179 13,793 138,920 144,838 3,891 3,360 185,098 228,822 107 191 9,258 1,696 137 211 2,578 4,768 23,759 7,067 ------
1,370 5,672 35,482 21,059 139,751 149,986 6,469 9,587 211,596 251,810
101,839 90,448 496,612 406,625 358,045 328,706 35,673 35,397 1,142,664 1,028,722
4,527 50,973 224,560 184,319 66,060 47,040 12,902 32,794 353,556 358,988
----15,300 15,300 - - 15,300 15,300 535 798 2,055 1,578 1,114 922 1,072 809 7,002 6,137 12 - 72 17 13 7 75 12 206 48
5,074 51,771 226,687 185,914 82,487 63,269 14,049 33,615 376,064 380,473
610 1,043 3,974 3,097 1,324 1,052 2,112 1,756 11,726 10,970 --186,691175,059----186,691 175,059 ----1,912 1,979 - - 1,912 1,979 73 - 443 125 80 56 451 91 1,261 361
683 1,043 191,108 178,281 3,316 3,087 2,563 1,847 201,590 188,369
5,757 52,814 417,795 364,195 85,803 66,356 16,612 35,462 577,654 568,842
96,082 37,634 78,817 42,430 272,242 262,350 19,061 (65) 565,010 459,880
95 DOI Annual Report 2004–05 Note 3. Restructuring of administrative arrangements
(i) On 1 February 2005, the Station Pier Committee of Management was abolished and responsibility transferred to the Port of Melbourne Corporation as a result of the Parliament passing the Transport Legislation Amendment Act 2004 on 15 December 2004
Movements out of the Department Treatment of net assets given to Port of Melbourne Corporation
The following assets and liabilities were recognised by the Port of Melbourne Corporation at the date of transfer:
2005 $’000 $’000 Station Pier Committee of Management
Assets Cash 1,988 Plant and equipment 7 Land 9,400 Infrastructure 20,112 31,507
Net capital contribution 31,507
(ii) In 2003–04, the Department of Infrastructure as successor in law of the remaining assets and liabilities of the former Public Transport Corporation taken on at 1 July 2003 includes the following:
Movements into the Department Treatment of net capital contribution received
The following assets and liabilities were recognised by the Department from the former Public Transport Corporation at the date of transfer:
2004 $’000 $’000 Public Transport Corporation
Assets Cash 33,828 Receivables 331 Plant and equipment 17,850 52,009
Liabilities Payables (261) Provisions (3,013) (3,274)
Net capital contribution from the Crown 48,735
Notes to the financial statements for the year ended 30 June 2005 96 Note 4. Major Projects Victoria
Land Sales
The activities of Major Projects Victoria (MPV) include land sales from nominated property development projects, the proceeds from which are remitted directly into the consolidated fund and are disclosed as administered items in the Department’s financial statements (refer note 31 Administered items). The level of settlements realised on these residential developments and land sales are slowly diminishing as these projects are approaching completion.
Project development and construction management for sponsor agencies
MPV, under delegated authority from the Secretary to the Department of Infrastructure, manages the Government’s interest in delivering major projects, drawing on funds appropriated to sponsor agencies. Refer also note 1(a)(iii).
Completed projects are transferred to the appropriate sponsor agency responsible for the asset occupancy and use.
Capital works expenditure undertaken during the reporting period by MPV has been included in the statement of cash flows and in the sponsor agencies’ accounts as either completed works or works in progress. While the statement of financial performance does not include the income or expenditure of sponsor agencies, the statement of financial position does reflect funds owing for project works and monies held on behalf of sponsor agencies. The following summary represents sponsor agencies where capital expenditures have been undertaken by MPV during the year.
Sponsor agency 2005 2004 $’000 $’000 Department of Human Services 108,596 114,203 Department of Innovation, Industry and Regional Development 102,959 33,125 Department of Victorian Communities 66,322 11,943 Department of Primary Industries 22,936 5,245 Department of Premier and Cabinet 9,254 27,926 Other 353 -
310,420 192,442
The following outlines the commitments undertaken by Major Projects Victoria on behalf of sponsor agencies which should be disclosed in the notes to their financial statements.
Sponsor agency 2005 2004 $’000 $’000 Department of Victorian Communities* 105,898 112,797 Department of Innovation, Industry and Regional Development 47,146 108,271 Department of Human Services 32,215 92,356 Department of Premier and Cabinet 22,028 8,758 Department of Treasury and Finance 1,612 - Department of Primary Industries 207 3,384 Capital commitment (inclusive of GST) 209,106 325,566 Less: GST recoverable (19,010) (30,026)
Capital commitments (exclusive of GST) 190,096 295,540
* Includes Office of Commonwealth Games
97 DOI Annual Report 2004–05 Note 4. Major Projects Victoria (continued)
Royal Melbourne Showgrounds Redevelopment Joint Venture Agreement
As part of MPV's activities in 2004–05 it has been engaged as the Project Manager for the Redevelopment of the Showgrounds on behalf of the Department of Primary Industries (DPI) and this project has been designated a nominated project under the Project Development and Construction Management Act 1994 (the Act). Accordingly, in June 2005, the Secretary to the Department of Infrastructure under the Act signed a number of agreements in relation to the Showgrounds Redevelopment Joint Venture (the 'joint venture'). The joint venture was established between the State Government of Victoria and the Royal Agricultural Society of Victoria (RASV) to redevelop the Royal Melbourne Showgrounds (RMS) and deliver on the Government's $100.7 million commitment to safeguard the showgrounds as a major showcase for Victorian agriculture and to support links between the city and rural and regional areas. A further $7.9 million funding is to be contributed to the costs, including the relocation of a creche to the western non-core land and RMS and remediation for contamination.
The joint venture agreement came into effect on 30 June 2005, the date on which all conditions attaching to the joint venture arrangements were achieved by both joint venture participants. An incorporated joint venture entity, the Showgrounds Nominees Pty Ltd, has been established to hold the assets of the joint venture operation on behalf of the joint venture participants. An unincorporated joint venture entity has also been established for the purpose of carrying out the joint venture project on behalf of the participants.
A Development and Operations Agreement (DOA) to deliver the project under the Partnership Victoria (PV) framework was finalised in June 2005. Under the DOA, PPP Solutions (PPPS) is the provider of the construction services to be completed by September 2006 and the Facility Management (FM) services over a 25-year period. The PPPS construction and maintenance service fee schedule reflects the 25-year duration of the DOA. The joint venture is responsible inter alia for the payments and contributions from the joint venture participants including RASV contributions to service fees and to the Asset Replenishment Fund.
Upon the completion of the DOA, the core land leased to PPPS will expire and the joint venture will take title of the buildings and facilities.
While the Secretary to the Department signed the agreements, DPI is the entity, which on behalf of the State, has a 50 per cent equity and voting interest in the operations of Showgrounds Nominees Pty Ltd and a 50 per cent interest in the unincorporated joint venture. Accordingly, accountability and the financial reporting responsibility rests with DPI. DPI will show a Joint Venture carrying investment amount of $69.068 million which represents 50 per cent share of the equity of the joint venture. The State has agreed to support the RASV with respect to certain obligations of the RASV which may arise out of the operations of the joint venture agreement. The extent of these obligations cannot be financially quantified until such time as those support obligations eventuate.
Notes to the financial statements for the year ended 30 June 2005 98 Note 5. Revenue
Revenue by source Notes Operating Non-operating 2005 2004 2005 2004 $’000 $’000 $’000 $’000 Revenue from government Output appropriations 6 2,800,742 2,503,977 - - Special appropriations 6 1,114 56 - - 2,801,856 2,504,033 - - Other revenue and revenue from other parties Revenue from other departments 111,444 84,736 - - Transport-related revenue 111,756 72,325 - - Recognition of bus shelters 15 3,548 - - - Other revenue 5,344 5,424 - - Gain on acquisition of rolling stock - 370,955 - - Interest - - 3,191 6,661 232,092 533,440 3,191 6,661
Total revenue 3,033,948 3,037,473 3,191 6,661
99 DOI Annual Report 2004–05 Note 6. Summary of compliance with annual parliamentary appropriations
(a) Summary of compliance with annual parliamentary appropriations
The following table discloses the details of the various annual parliamentary appropriations received by the Department for the year. In accordance with accrual output-based management procedures ‘Provision for outputs’ and ‘Additions to net assets’ are disclosed as ‘controlled’ activities of the Department. Administered transactions are those that are undertaken on behalf of the State over which the Department has no control or discretion.
Appropriation Act Financial
Annual appropriation Payments from Section 3(2) Section 29 Section 30 (a) advance to Treasurer $’000 $’000 $’000 $’000 $’000 2005 2004 2005 2004 2005 2004 2005 2004 2005 2004
Controlled Provision for outputs 2,713,528 2,241,724 - 57,510 - 1,055 256,247 135,923 (56,402) 465 Additions to net assets 303,497 537,270 - 69,000 - - - - 47,402 (215)
Administered Payments made on behalf of the State - 49,003 - 38,750 - - - - 9,000 (250)
Total 3,017,025 2,827,997 - 165,260 - 1,055 256,247 135,923 - -
1 The variance is primarily related to agreed changes in committed projects being delivered in the next financial year.
(b) Summary of compliance with special appropriations
Authority Purpose Appropriations applied 2005 2004 $'000 $'000 Section 213A (4) Refund passenger transport companies the administrative 1,114 56 of the Transport Act 1983 costs associated with ticket infringements
Notes to the financial statements for the year ended 30 June 2005 100 Management Act 1994
Section 32 Section 35 Total Parliamentary Appropriations applied Variance Advances Authority $’000 $’000 $’000 $’000 $’000 2005 2004 2005 2004 2005 2004 2005 2004 2005 2004
46,613 86,745 - 39,093 2,959,986 2,562,515 2,800,742 2,503,977 159,244 58,538 32,025 118,848 29,625 13,690 412,549 738,593 320,022 502,002 92,527 236,591
----9,000 87,503 9,000 87,500 - 3
78,638 205,593 29,625 52,783 3,381,535 3,388,611 3,129,764 3,093,479 251,7711 295,132
101 DOI Annual Report 2004–05 Note 7. Rail services
2005 2004 $’000 $’000 Rail system operating and related payments 702,983 928,856 Grants associated with the capital asset charge 599,030 564,000
Total 1,302,013 1,492,856
Note 8. Other expenses from ordinary activities
2005 2004 $’000 $’000 Multi purpose taxi program 34,028 40,485 Administration and information technology 21,554 23,509 Grants to other agencies 37,172 14,517 Grants paid for community and social benefits 14,614 12,890 Occupancy 8,347 9,386 Insurance legal and internal audit fees 3,375 12,516 Other 45,922 35,351 Borrowing costs 60 2
Total other expenses from ordinary activities 165,072 148,656
Notes to the financial statements for the year ended 30 June 2005 102 Note 9. Result from ordinary activities
The net result for the reporting period includes the following specific net gains and expenses:
2005 2004 Net gains and expenses $’000 $’000
Expenses Employee benefits Salary and wages 45,284 40,692 Superannuation (excluding salary sacrifice) 5,243 4,319 Annual leave and long-service leave expense 7,984 5,293 Other on-costs (fringe benefits tax, payroll tax and workcover levy) 4,459 4,314
Total employee benefits 62,970 54,618
Depreciation Buildings 397 56 Plant and equipment 3,563 3,325 Vehicles 58 700 Infrastructure assets 583 736 Total depreciation 4,601 4,817
Amortisation Leasehold improvements 2,271 2,078 Intangible assets 5,375 3,035 Leased vehicles 135 9 Total amortisation 7,781 5,122
Total depreciation and amortisation 12,382 9,939
Rental expense relating to operating lease Minimum lease payments 7,555 7,839
Total rental expense relating to operating leases 7,555 7,839
Note 10. Value of assets written down/disposed of
2005 2004 $’000 $’000 Land 6,745 1,437 Previous project expenditure capitalised 7,924 - Revaluation write down of Goninan train 1,969 - Plant and equipment 699 - Buildings 440 - City Link project assets written off – land under roads - 16,107 Revaluation write down of Station Pier - 1,287 Other - 376
17,777 19,207 Intangibles 11,738 24
11,738 24
Total 29,515 19,231
103 DOI Annual Report 2004–05 Note 11. Assets transferred to other agencies free of charge
2005 2004 $’000 $’000 Transfer to VicTrack 17,184 448,1772 Transfer to Spencer Street Station Authority - 150 Transfer to Southern Eastern Integrated Transport Authority - 65 Transfer to VicRoads - 9
Total 17,184 448,401
2 In 2004, the value comprises the former M>Train, M>Tram and Connex rolling stock acquired by the State on termination of the 1999 franchise agreements. These assets were transferred at fair value to VicTrack who will hold these assets on behalf of the State while they are used by the new franchisees Connex and Yarra under the new partnership arrangements entered into on 18 April 2004.
Note 12. Cash assets
2005 2004 $’000 $’000 Cash at bank and on hand 33,022 19,581 Funds held in trust – cash 506,097 407,816 – short-term deposits 50,000 50,433
589,119 477,830
The above figures are reconciled to cash at the end of the financial year as shown in the statement of cash flows as follows: Balances above 589,119 477,830 Balances as per statement of cash flows 589,119 477,830
Short-term deposits
The deposits are bearing floating interest rates between 4 per cent and 5 per cent (2004 – 4 per cent and 5 per cent).
Notes to the financial statements for the year ended 30 June 2005 104 Note 13. Receivables
2005 2004 $’000 $’000
Current Amounts owing from Victorian Government 246,849 215,434 Other debtors 87,592 79,731 334,441 295,165 Non-current Amounts owing from Victorian Government - 12,594 Other debtors 2,045 - 2,045 12,594 Aggregate carrying amount of receivables Current 334,441 295,165 Non-current 2,045 12,594
336,486 307,759
Note 14. Inventories
2005 2004 $’000 $’000
Current Land inventory – at cost 6,813 3,142 6,813 3,142 Non-current Land inventory – at cost 694 3,327 694 3,327 Aggregate carrying amount of inventories Current 6,813 3,142 Non-current 694 3,327
7,507 6,469
The land inventory is owned by the body corporate, Secretary to the Department of Infrastructure. The body corporate activities include the functions performed by MPV. Refer note 1(a) (iii).
105 DOI Annual Report 2004–05 Note 15. Infrastructure, property, plant and equipment
2005 2004 $’000 $’000
Land and buildings Land – at cost 1,866 3,162 Land – at independent valuation 2005 62,360 - Land – at independent valuation 2004 37,640 53,409 Land – at independent valuation 2003 18,911 25,656 Land – at independent valuation 2002 - 36,485 120,777 118,712 Buildings – at cost - 5,667 Buildings – at independent valuation 2005 2,745 - Buildings – at independent valuation 2004 3,627 3,627 Less: accumulated depreciation – at cost - (3) Less: accumulated depreciation – at valuation (389) - 5,983 9,291
Total land and buildings 126,760 128,003 Infrastructure Infrastructure – at independent valuation 2005 3,548 - Infrastructure – at independent valuation 2004 - 20,695
Total infrastructure 3,548 20,695 Plant and equipment Plant at cost 20,924 20,056 Less: accumulated depreciation (11,906) (11,675) 9,018 8,381
Leasehold improvement office assets – at cost 16,496 16,638 Less: accumulated amortisation (11,025) (9,380) 5,471 7,258
Total plant and equipment 14,489 15,639 Vehicles Vehicles – at cost 1,601 20,328 Less: accumulated amortisation (143) (709)
Total vehicles 1,458 19,619 Work in progress (software and construction) Infrastructure and other assets 38,843 44,866
Total work in progress 38,843 44,866
Total net written-down value 185,098 228,822
Notes to the financial statements for the year ended 30 June 2005 106 Valuations
The basis of valuation of land, buildings and infrastructure is fair value, which is market value for land and buildings and depreciated replacement cost for infrastructure assets and is based on an independent assessment by the Valuer-General. Where an independent assessment by the Valuer-General has been used, the financial year in which the assessment was made is also disclosed.
The approach in determining which items within the class are revalued in each reporting period is based on an assessment of the age of the asset and the date of the previous revaluation and keeping in line with the current Department of Treasury and Finance revaluation policy of revaluing at least every three years.
Plant and equipment is valued at cost (also refer note 1(h)).
Reconciliation
Reconciliations of the carrying amounts of each class of infrastructure, property, plant and equipment at the beginning and end of the current financial year are set out below.
Freehold Buildings Building Plant and Vehicles Infrastructure Work in Total land leasehold equipment assets progress 2005 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Carrying amount at start of year 118,712 9,291 7,258 8,381 19,619 20,695 44,866 228,822 Additions 14,875 - 504 4,906 1,185 - 30,509 51,979 Disposals/Write-offs (6,745) (420) (20) (699) (1,969) - (7,924) (17,777) Revaluation increments 668 1,447 - - - - - 2,115 Depreciation/amortisation expense - (397) (2,271) (3,563) (193) (583) - (7,007) Transfer to other agencies - - - (17,184) - - (17,184) Transfer by way of contributed capital (10,671) - - (7) - (20,112) (342) (31,132) Transfers between classes 3,938 (3,938) ------Transfer to Intangibles ------(28,266) (28,266) Recognition of bus shelters - - - - - 3,548 - 3,548
Carrying amount at end of year 120,777 5,983 5,471 9,018 1,458 3,548 38,843 185,098
107 DOI Annual Report 2004–05 Note 16. Intangible assets
2005 2004 $’000 $’000 Software (at cost) 20,422 15,987 Less: accumulated amortisation (11,666) (8,920)
8,756 7,067 Work in progress 15,003 -
23,759 7,067
Reconciliation of movements 2005 2004 $’000 $’000 Carrying amount at start of year 7,067 9,283 Transfer from fixed assets work in progress 28,266 - Additions 5,539 1,019 Disposals/write downs (11,738) (200) Amortisation for the year (5,375) (3,035)
Carrying amount at end of the year 23,759 7,067
Note 17. Payables
2005 2004 $’000 $’000 Trust fund creditors and accruals 175,043 193,703 Other creditors and accruals 175,112 165,218 Unearned/Prepaid income 3,401 67
353,556 358,988
Notes to the financial statements for the year ended 30 June 2005 108 Note 18. Provisions
2005 2004 $’000 $’000
Current
Employee benefits Annual leave 4,187 3,556 Long-service leave 1,857 1,393 Accrued performance incentive 958 1,188 7,002 6,137
Non-current
Employee benefits Annual leave 1,623 1,576 Long-service leave 10,103 9,394 11,726 10,970
Aggregate carrying amount of provisions for employee benefits Current 7,002 6,137 Non-current 11,726 10,970
18,728 17,107
Note 19. Other provisions
2005 2004 $’000 $’000 Provision for the employee entitlements of rail operators3 167,704 147,906 Provision for ‘Onelink’ agreed claims4 17,034 25,218 Provision for public liability claims5 1,922 1,935 Other 31 -
186,691 175,059
3 The State has agreed to assume responsibility for the employee entitlements of the employees of the Public Transport Operators as at 18 April 2004. 4 The Government has agreed to settlement for various claims in relation to the Transport Ticketing System owed by the ‘Onelink’ company. 5 As successor in law of the former Public Transport Corporation, the provision for public liability claims was transferred to the Department on 1 July 2003. This provision is for all active claims of public liability on public transport infrastructure owned by the former Public Transport Corporation, the former National Express rail operator, the Department and for VicTrack where an indemnity has been provided by the Director of Public Transport.
109 DOI Annual Report 2004–05 Note 20. Equity and movements in equity
2005 2004 $’000 $’000
(a) Contributed capital Balance at the beginning of the financial year 554,557 508,068 Net capital contributed upon restructure (refer note 3) - 48,735 Capital contribution by Victorian State Government (refer note 6) 320,022 502,002 Capital contributions to agencies outside the Infrastructure portfolio (5,100) (56,563) Capital contributions to agencies within the Infrastructure portfolio * (430,224) (447,685)
Balance at the end of the financial year 439,255 554,557 (b) Accumulated surplus/(deficit) Balance at the beginning of the financial year (198,389) 147,743 Net result for the reporting period 218,317 (346,132)
Balance at the end of the financial year 19,928 (198,389) (c) Reserves Asset revaluation reserve 105,827 103,712 105,827 103,712 Asset revaluation movements Balance at the beginning of the financial year 103,712 52,930 Increment on revaluation of land during the year 668 49,870 Increment on revaluation of freehold buildings during the year 1,447 912
Balance at the end of the financial year 105,827 103,712 (d) Summary of equity Total equity at the beginning of the financial year 459,880 708,741 Net contributions of equity (115,302) 46,489 Total changes in equity recognised in the statement of financial performance 220,432 (295,350)
Total equity at the end of the financial year 565,010 459,880
* Capital contributions to agencies within the Infrastructure portfolio: Rail services (VicTrack) 320,415 327,491 Port of Melbourne Corporation 39,108 - Road services (SEITA) 32,681 49,269 Road services (VicRoads) 19,500 34,022 Public Transport Ticketing Body (TTA) 10,500 36,903 Rail services (VLine) 5,450 - VicUrban 2,570 -
430,224 447,685
Notes to the financial statements for the year ended 30 June 2005 110 Note 21. Financial instruments
(a) Credit risk exposures
The credit risks on financial assets of the Department which have been recognised in the statement of financial position is generally the carrying amount, net of any provisions for doubtful debts. (b) Interest rate risk exposures
The Department’s exposure to interest rate risk and the effective weighted average interest rate by maturity periods is set out in the following table. For interest rates applicable to each class of asset or liability, refer to individual notes to the financial statements.
Exposures arise predominantly from assets bearing variable interest rates as the Department intends to hold fixed-rate assets to maturity. (c) Interest rate risk exposures Fixed interest maturing in: 2005 Notes Floating 1 year Over 1 More than Non- Total interest rate or less to 5 years 5 years interest bearing Financial assets $'000 $'000 $'000 $'000 $'000 $'000 Cash assets 12 80,351 - - - 508,768* 589,119 Receivables 13 - - - - 336,486336,486
80,351 - - - 845,254 925,605
Weighted average interest rate 5.5% Financial liabilities Payables 17 - - - - 353,556 353,556 Lease liabilities 1,467 - - - - 1,467 1,467 - - - 353,556 355,023
Net financial assets 78,884 - - - 491,698 570,582
Fixed interest maturing in: 2004 Notes Floating 1 year Over 1 More than Non- Total interest rate or less to 5 years 5 years interest bearing Financial assets $'000 $'000 $'000 $'000 $'000 $'000 Cash assets 12 70,014 - - - 407,816* 477,830 Receivables 13 - - - - 307,759 307,759
70,014 - - - 715,575 785,589
Weighted average interest rate 4.5% Financial liabilities Payables 17 - - - - 358,988 358,988 Lease liabilities 409 - - - - 409 409 - - - 358,988 359,397
Net financial assets 69,605 - - - 356,587 426,192
* Any interest earned on cash assets held by the Department of Treasury and Finance on behalf of the Department of Infrastructure is accounted for by the Department of Treasury and Finance.
111 DOI Annual Report 2004–05 Note 21. Financial instruments (continued)
(d) Net fair value of financial assets and liabilities
(i) On-statement of financial position
The net fair value of cash and cash equivalents and non-interest bearing monetary financial assets and financial liabilities of the Department approximates their carrying amounts.
The net fair value of other monetary financial assets and financial liabilities is based upon market prices where a market exists.
The carrying amounts and net fair values of financial assets and liabilities at reporting date are: 2005 2004 Carrying amount Net fair value Carrying amount Net fair value $’000 $’000 $’000 $’000 On-statement of financial position Financial assets Cash assets 589,119 589,119 477,830 477,830 Receivables 336,486 336,486 307,759 307,759
925,605 925,605 785,589 785,589 Financial liabilities Payables 353,556 353,556 358,988 358,988 Lease liabilities 1,467 1,467 409 409 355,023 355,023 359,397 359,397
Net financial assets 570,582 570,582 426,192 426,192
(ii) Off-statement of financial position The Department has potential financial liabilities which may arise from certain contingencies disclosed in note 25. As explained in that note, contingent liabilities by definition are similar to a liability – the distinguishing feature being the uncertainty over the Government’s obligation.
Notes to the financial statements for the year ended 30 June 2005 112 Note 22. Ministers and Accountable Officers
In accordance with the Directions of the Minister for Finance under the Financial Management Act 1994, the following disclosures are made regarding responsible persons for the reporting period.
Names
The persons who held the above positions in the Department are as follows:
Minister for Transport Peter Batchelor MP 1 July 2004 to 30 June 2005 Minister for Major Projects Peter Batchelor MP 1 July 2004 to 23 January 2005 Minister for Major Projects John Lenders MLC 24 January 2005 to 30 June 2005 Minister for Energy Industries and Resources Theo Theophanous MLC 1 July 2004 to 30 June 2005
Minister for Information and Communication Technology Marsha Thomson MLC 1 July 2004 to 30 June 2005
Accountable Officer
Mr. Howard Ronaldson Secretary, Department of Infrastructure 1 July 2004 to 30 June 2005
Remuneration
Total remuneration received or receivable by the Accountable Officer (excluding Acting Accountable Officers whose remuneration is included in ‘Remuneration of Executives’ (refer to note 23) in connection with the management of the Department during the reporting period) was in the range: 2005 No. 2004 No. Income band Income band $330,000 – $339,000 1 $300,000 – $309,999 1
Remuneration amounts relating to Ministers are reported in the financial statements of the Department of Premier and Cabinet.
Other transactions
(a) Other related transactions and loans requiring disclosure under the Directions of the Minister for Finance have been considered and there are no matters to report.
(b) The Director of Public Transport is the sole shareholder on behalf of the State in the Victorian Rail Services Pty Ltd (refer to notes 1(a)(ii) and 30).
113 DOI Annual Report 2004–05 Note 23. Remuneration of executives
The numbers of executive officers, other than Ministers and the Accountable Officer and their total remuneration during the reporting period are shown in the first two columns in the table below in their relevant income bands. The base remuneration of executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, pay in lieu of leave payments, redundancy payments and retirement benefits.
Income band Total remuneration Base remuneration 2005 2004 2005 2004 no. no. no. no. Less than $100,000 25 22 28 26 $100,000–109,999 3 3 1 8 $110,000–119,999 2 4 4 3 $120,000–129,999 3 4 4 7 $130,000–139,999 3 7 6 7 $140,000–149,999 3 8 7 7 $150,000–159,999 5 4 3 3 $160,000–169,999 8 5 4 3 $170,000–179,999 2 2 5 4 $180,000–189,999 3 7 4 3 $190,000–199,999 2 2 2 1 $200,000–209,999 6 1 1 4 $210,000–219,999 4 3 5 0 $220,000–229,999 1 1 0 1 $230,000–239,999 2 1 1 1 $240,000–249,999 3 1 1 0 $250,000–259,999 0 1 1 0 $260,000–269,999 1 1 0 0 $280,000–289,999 1 0 0 0 $310,000–319,999 0 1 0 0
Total numbers 77 78 77 78
Total amount $10,459,867 $10,547,869 $9,450,304 $9,244,270
Note 24. Remuneration of auditors
Audit fees paid or payable to the Victorian Auditor-General’s Office for audit of the Department’s financial report:
2005 2004 $’000 $’000 Paid as at 30 June 100 37 Payable as at 30 June 161 250
261 287
Notes to the financial statements for the year ended 30 June 2005 114 Note 25. Contingent liabilities
Contingent liabilities arise from guarantees, indemnities and Commonwealth Games kilometre payment other forms of support provided by the Government and from The Director is obligated to make payment for additional legal disputes and other claims against the Government service kilometres operated above the Master Timetable arising from a past event. Contingent liabilities by definition Requirements in respect of the Commonwealth Games. are similar to a liability – the distinguishing feature being the uncertainty over the Government’s obligation. New ticketing revenue guarantee payment
Public Transport Rail Franchise Agreements Franchisees have an option to elect to permanently move to a Revenue Guarantee Payment Regime should The Director of Public Transport, on behalf of the Crown, implementation matters or new ticket fare structures entered into new partnership contractual arrangements with associated with the introduction of the New Ticketing System franchisees to operate rail transport services in the State cause a real reduction in the farebox. The Revenue operative from 18 April 2004. The following summarises the Guarantee Payment will be based on the prior period’s major contingent liabilities arising from those arrangements. farebox, including an estimate for patronage growth and inflation. Under the above arrangement, the Director is liable Contingent liabilities arising during the franchise period for the difference between actual farebox received and the There are a number of contingent liabilities arising from the guaranteed revenue amount. New Partnership Agreements between the Director of Public Transport and Connex and Yarra Trams which were signed on New Ticketing System start-up 19 February 2004. These possible liabilities refer to payments The State is obligated to pay any additional labour costs to be made by the Director of Public Transport to Connex and associated with the training and deployment of staff in Yarra Trams should certain events occur: relation to the establishment of the New Ticketing System.
Operational Performance Regime (OPR) Employee entitlements
The OPR obligates the Director to make incentive payments Franchisees are required to manage employee entitlements for franchisees exceeding set punctuality and reliability to agreed forecast amounts. performance targets. The Director is obligated to make payments where the Special event payments Provision for Employee Entitlements (excluding long-service leave) is less than an agreed forecast amount; and actual The Director is obligated to make payments at a set rate for long-service leave payments are greater than an agreed special event kilometres operated above a defined forecast amount. contractual limit. Access charge adjustment Farebox risk sharing Should the access charge regime for train rail access be The Director is obligated to make payments should farebox reset, then the Director is obligated to make payment to the receipts fall below defined thresholds. franchisee in respect of any increased cost as a result of the reset. Service growth incentive The Director is also required to reimburse the franchisee’s The Director is obligated to make payment for certain reasonable costs incurred in renegotiating the access additional services introduced to meet service standards. charges.
Commonwealth Games revenue guarantee payments Regional Fast Rail The Director is obligated to make a top-up payment should, The Director is required to meet the incremental costs as a result of the Commonwealth Games, farebox fall below incurred by Connex associated with the introduction of a projected amount based on the prior period’s farebox and Regional Fast Rail. patronage growth.
115 DOI Annual Report 2004–05 Note 25. Contingent liabilities (continued)
Connex and Mainco indemnity Contingent liabilities arising from potential changes to existing conditions The Department has indemnified Connex and Mainco (including agents and contractors) against any loss caused Change in Victorian Law by Regional Rail Link while undertaking Regional Fast Rail works within the Connex network. Franchisees may make a claim against the Director for any net losses incurred as a result of a change in Victorian Law VicTrack and Spencer Street Station Authority indemnity which directly relates to the franchise business.
The Director indemnifies VicTrack and the Spencer Street Latent defects Station Authority from any claim brought by the franchisees under the Infrastructure Lease. The Director is responsible for leased infrastructure defects above a threshold amount. Adjustment event Pre-existing contamination The Director is obligated to increase the Fixed Monthly Franchise sum as a result of any other defined Adjustment The Director is responsible for all costs associated with pre- Event occurring which has a fundamental impact. existing contamination clean-up. The Director also indemnifies the franchisee from and against all losses, Contingent liabilities on early termination or expiry of damages, actions suits, claims, demands, costs and franchise agreement expenses associated with pre-existing contamination.
Franchise assets Native Title
To maintain continuity of services, the Director, at early The Director is liable for payments of any valid compensation termination or expiry of the franchise arrangements, will: claim to native title holders made under any Native Title Law in respect of the land defined in the infrastructure leases • for new rolling stock – either acquire the new rolling stock entered into with franchisees. at predetermined values or have the lease payment obligations transferred to the Director or a successor Contingent liabilities arising from National Express franchise receivership • for franchise assets – either purchase the assets or have In December 2002, the Government appointed receivers and the assets transferred to the successor. managers to the National Express train and tram franchises, in order to protect government interest, ensure continuation Unfunded superannuation of services up to the commencement of new franchise At the early termination or expiry of the contract, the Director arrangements and deal with any subsequent termination will assume any unfunded superannuation amounts (apart issues. from contributions the franchisee is required to pay over the The Treasurer, under the Receivership Deed of Indemnity, has contract term) to the extent that the State becomes the agreed to indemnify the receivers for debts properly incurred successor operator. by them in the course of receivership. The Treasurer has also agreed to remunerate the receivers in accordance with the rates set out in the deed.
On 1 October 2003, V/Line Passenger Pty Ltd, a company under a Deed of Company Arrangement, was purchased by V/Line Passenger Corporation, a statutory authority and has reverted to government ownership.
Notes to the financial statements for the year ended 30 June 2005 116 Country Train Safety System
Country Train Safety Systems is the project under which the Train Protection and Warning System is generally being installed. The Director of Public Transport has indemnified Pacific National (Country Track Access Provider) against all costs associated with the Train Protection and Warning System. National Electricity Code Administrator
The the National Electricity Code Administrator (NECA) Members Agreement, dated 9 May 1996, provides that the maximum amount payable by Victoria on winding up of NECA is $1,285,000. Further, this amount is in addition to any amount payable under the memorandum of association under which NECA was established. National Electricity Market Management Company
The National Electricity Market Management Company (NEMMCO) Members Agreement, date 9 May 1996, provides that the maximum amount to be contributed by Victoria if NEMMCO is wound up is $5,233,050. Further, this amount is in addition to any amount payable under the memorandum of association under which NEMMCO was established.
Details and estimates of other contingent liabilities are as follows: 2005 2004 $’000 $’000 Quantified Legal disputes - 3,200 Personal injury 200 - 200 3,200
Unquantified:
• Claims which relate to a contractual dispute that are yet to be quantified (2004 – nil claims).
117 DOI Annual Report 2004–05 Note 26. Contingent assets
Contingent assets arise from guarantees, indemnities and Employee entitlements other forms of support provided to government departments Franchisees are required to manage employee entitlements and from legal disputes and other claims by government to agreed forecast amounts. departments arising from a past event. Contingent assets by definition are similar to an asset – the distinguishing feature The Director is entitled to receive payments where the being the uncertainty over the Government’s entitlement. Provision for Employee Entitlements (excluding long-service leave) is greater than an agreed forecast amount; and Public Transport Rail Franchise Agreements actual long-service leave payments are less than an agreed forecast amount. On 19 February 2004, the Director of Public Transport, on behalf of the Crown, entered into contractual arrangements Adjustment event with franchisees to operate rail transport services in the State. The following summarises the major contingent assets The Director is obligated to decrease the Fixed Monthly arising from those arrangements. Franchise Sum as a result of a defined Adjustment Event occurring which has a fundamental impact.
Contingent assets arising during the franchise period Contingent assets on early termination or expiry of the franchise agreement Profit sharing With respect to additional costs arising to the Director on the The Director is entitled to receive payment from franchisees early termination or expiry, the franchisee must indemnify the should franchisee profits exceed defined thresholds. Director for any losses, damages or costs incurred by him as a result of the termination. If the franchisee does not do so, Operational Performance Regime (OPR) the Director has the right to draw on the franchisee’s The OPR entitles the Director to receive penalty payments for performance bond totalling $100 million for the amount of the franchisees failing to meet set punctuality and reliability losses, damages or costs. performance targets. Contingent assets arising from litigation Special event payments The Department has initiated proceedings to recover clean- The Director is entitled to receive payments at a set rate for up costs associated with marine pollution incidents from special event kilometres short of a defined contractual limit. various entities.
Newport depot General Interest Charge
The annual franchise sum payable to Connex is to be The Department has objected to a General Interest Charge reduced by the value of the Newport lease rental at the expiry (GIC) from the ATO in respect of a GST assessment in or early surrender of the lease. November 2004. A successful outcome to this objection may result in a refund to the Department. OneLink Service Contract
The Director will be paid all compensation payments under the OneLink Service Contract for failure to meet all required performance standards.
Notes to the financial statements for the year ended 30 June 2005 118 Note 27. Commitments for expenditure
The following commitments have not been recognised as liabilities in the financial statements. 2005 2004 $’000 $’000
Capital and other related commitments Commitments contracted for at the reporting date but not recognised as liabilities, payable: Within one year 105,024 501,748 Later than one year but not later than 5 years 33,573 94,188 Later than 5 years - 1,200 Commitments (inclusive of GST) 138,597 597,136 Less: GST recoverable (12,600) (54,285) Commitments (exclusive of GST) 125,997 542,851
Decrease in capital and other related commitments compared to the prior year is a result of commitments of $460 million relating to Major Projects Victoria being moved to Note 4.
Rail and bus commitments.
The Department has entered into a number of contracts with private operators to provide Victoria’s tram, train and bus services. Under the terms of these agreements, the Department provides subsidies for transport services and capital commitments.
The estimates for rail and bus commitments have been calculated as at 30 June 2005 based on these existing contracts.
In February 2004, the Government announced new partnership arrangements to deliver the metropolitan tram and train system. The Government signed contracts with Yarra Trams to operate the total metropolitan tram network and with Connex to operate the total metropolitan train network. The new partnership arrangements have reduced risk for the franchisees and also provide for greater State protection regarding franchise performance and obligations.
In addition to the train and tram arrangements, a new industrywide body, Metlink, which is responsible for providing and overviewing networkwide ticketing, marketing, information and complaints handling services, commenced operations. Metlink mainly subsumes the functions of the Revenue Clearing House, VicTrip and the Melbourne Passenger Growth Initiative but also takes on additional responsibilities.
The new partnership arrangements are effective from 18 April 2004 and operate for approximately a five-year period to 30 November 2008. The State has an option to extend the franchise period for a period of no less than six months and ending no later than 31 May 2010.
The above franchise commitments have been calculated on the basis of the contract period up to 30 November 2008.
V/Line Passenger rail services reverted to government control with a new franchise arrangement established for the period from 1 October 2003 to 29 October 2006.
119 DOI Annual Report 2004–05 Note 27. Commitments for expenditure (continued)
Commitments in relation to rail services contracted for at the reporting date but not recognised as liabilities, payable: 2005 2004 $’000 $’000 Non-discounted Non-discounted
Rail commitments Commitments in relation to rail services contracted for at the reporting date but not recognised as liabilities, payable: Within one year 879,420 776,103 Later than one year but not later than 5 years 2,084,017 3,044,884 Later than 5 years 1,554,422 1,289,860 Rail commitments (inclusive of GST) 4,517,859 5,110,847 Less: GST recoverable (410,714) (464,623) Rail commitments (exclusive of GST) 4,107,145 4,646,224
Representing Non-cancellable operating leases 4,107,145 4,646,224
Comparisons of the rail commitment at 30 June 2005 with the prior year reveals the following changes: • rail commitments have expired one additional year since 30 June 2004 • additional funding for the Craigieburn train extension • earlier delivery timetable for five option metropolitan train units for the Commonwealth Games • the regional train units have been adjusted to reflect actual cost (previously estimated) • increased eligibility for Concession and Veteran’s Affairs travel concessions • New Year’s Eve funding for additional services • Train Driver Training funding initiatives. Commitments in relation to bus services contracted for at the reporting date but not recognised as liabilities, payable: 2005 2004 $’000 $’000 Non-discounted Non-discounted
Bus commitments Commitments in relation to bus services contracted for at the reporting date but not recognised as liabilities, payable: Within one year 558,873 526,020 Later than one year but not later than 5 years 1,110,387 1,565,300 Later than 5 years 31,582 98,120 Commitments (inclusive of GST) 1,700,842 2,189,440 Less: GST recoverable (154,622) (199,040) Bus commitments (exclusive of GST) 1,546,220 1,990,400
Comparisons of the bus commitment at 30 June 2005 with the prior year reveal the following changes: • bus commitments have expired one additional year since 30 June 2004 • funding for additional metropolitan bus services.
Representing Non-cancellable operating leases 1,546,220 1,990,400
Notes to the financial statements for the year ended 30 June 2005 120 2005 2004 $’000 $’000
Leases Commitments for minimum lease payments in relation to non-cancellable leases are payable as follows: Within one year 9,616 7,819 Later than one year but not later than 5 years 10,979 13,676 Later than 5 years -- Commitments (inclusive of GST) 20,595 21,495 Less: GST recoverable (1,872) (1,952) Commitments (exclusive of GST) 18,723 19,543 Future minimum lease payments expected to be received in relation to non-cancellable 468 107 sub-leases of operating leases
Outsourcing commitments Commitments under outsourcing contracts at the reporting date but not recognised as liabilities, payable: Within one year 1,280 933 Later than one year but not later than 5 years 854 207 Later than 5 years -- Commitments (inclusive of GST) 2,134 1,140 Less: GST recoverable (194) (104) Commitments (exclusive of GST) 1,940 1,036
121 DOI Annual Report 2004–05 Note 28. Employee benefits
2005 2004 Employee entitlement liabilities $’000 $’000 Provision for employee benefits Current (note 18) 7,002 6,137 Non-current (note 18) 11,726 10,970 Aggregate employee entitlement liability 18,728 17,107
Employee numbers No. No. Number of employees at reporting date 953 816
As explained in note 1(p)(ii), the amounts for long-service leave are measured at their present values. The following assumptions were adopted in measuring present values: 2005 2004 (a) Long-service leave Weighted average rates of increase in annual employee benefits to settlement of the liabilities 4.75% 4.50% Weighted average discount rates 5.66% 5.24% Weighted average terms to settlement of the liabilities 15 years 15 years
Notes to the financial statements for the year ended 30 June 2005 122 Government employees' superannuation funds
No liability is recognised in the statement of financial position for the Department’s share of the State’s unfunded superannuation liability. The State’s unfunded superannuation liability has been reflected in the financial statements of the Department of Treasury and Finance.
However, superannuation contributions for the reporting period are included as part of employee benefits in the statement of financial performance of the Department.
The name and details of the major employee superannuation funds and contributions (including salary sacrifice contributions) made by the Department are as follows: Fund Contribution Contribution Contribution Contribution for the year for the year outstanding at outstanding at year end year end 2005 2004 2005 2004 $$ $ $ State Superannuation Scheme – revised and new 2,608,004 2,314,625 - - Victorian Superannuation Fund 4,411,935 4,057,235 - - Victorian Water Superannuation Fund 40,643 38,788 - 8,102 Transport Superannuation Fund 403,586 401,698 - 24,491 Various other 1,047,858 670,544 - -
Total 8,512,026 7,482,890 - 32,593
The bases for contributions are determined by the various schemes.
All employees of the Department who are members of government superannuation funds are entitled to benefits on retirement, disability or death. These funds provide defined lump sum benefits based on years of service and final average salary. The above benefits are provided via either defined benefit schemes or accumulated fund schemes.
The above amounts were measured as at 30 June of each year, or in the case of employer contributions they relate to payments made for years ended 30 June.
There were no loans made by the superannuation funds to the Department during the year.
123 DOI Annual Report 2004–05 Note 29. Reconciliation of the net result for the reporting period to net cash inflow from operating activities
2005 2004 $’000 $’000 Net result for the reporting period 218,317 (346,132) Value of assets written down/disposed of 29,515 19,231 Gain on acquisition of rolling stock - (370,955) Depreciation and amortisation 12,382 9,939 Net assets provided free of charge 17,184 448,401 Recognition of bus shelters (3,548) - Change in operating assets and liabilities, net effects from restructuring: (Increase) in receivables and debtors (7,216) (81,939) Increase/(decrease) in payables and operating liabilities (88,491) 101,702 Increase in other provisions 13,667 140,647 Decrease/(Increase) in prepayments 80 (53) (Decrease) in prepaid income (67) (68)
Net cash inflow/(outflow) from operating activities 191,823 (79,227)
Notes to the financial statements for the year ended 30 June 2005 124 Note 30. Consolidation: Victorian Rail Services Pty Ltd
(Refer to note 1(a)(ii))
The Victorian Rail Services Pty Ltd (VRS) is a wholly-owned government company with the Director of Public Transport being the sole shareholder. In accordance with Australian accounting standards, the statement of financial performance, statement of financial position and statement of cash flows of VRS (as follows, after eliminations) have been consolidated into the Department’s financial statements at 30 June 2005: 30 June 2005 30 June 2004 (after eliminations) (after eliminations) $$
Assets Cash - 925,040 Trade debtors - 95,342 Unlisted equity – shares in companies - (1)
Total assets - 1,020,381 Liabilities Trade creditors - 615 Accruals - 10,000 GST payable - 9,766
Total liabilities - 20,381
Net assets - 1,000,000 Equity Accumulated surplus - 1,000,000 Revenue Interest received 42,916 43,838 Refunds and reimbursements - 3,810,121 Other 26,777 42,144 Distribution of assets by liquidator6 (1,054,301) -
Total revenue (984,608) 3,896,103 Expenses Liquidator fees 9,569 - Computer and communications - 2,781,413 Property expenses - 741,084 Insurance - 169,748 Contractors - 53,710 Staff related costs 766 36,909 Superannuation - 1,603 Workers compensation - 1,878 Other operating expenditure7 5,057 109,758
Total expenses 15,392 3,896,103
Net result for the period (1,000,000) -
6 The amounts included represents the final distribution of funds remaining in the company after the liquidators have extinguished all obligations to creditors. This amount was paid by the liquidators and received by the Department on 1 June 2005. 7 Included in Other operating expenditure is an amount for the Audit fees for 2005 Annual Report. These fees have been recognised as revenue and expense as they will be paid by the Department on behalf of VRS. There is no obligation by VRS or the liquidators to repay this amount to the Department.
125 DOI Annual Report 2004–05 Note 31. Administered items
Infrastructure ICT and Ports and Regional and Planning and Multimedia Intermodal Rural Transport Policy Gateways Services 2005 2004 2005 2004 2005 2004 2005 2004 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Adminstered revenue Vehicle registration fees ------Driver licences ------Stamp duty ------Other licence fees and permits ------Commonwealth grants ------Appropriations payments made 9,000 87,500 ------on behalf of the State Concession fees (refer next page) ------Fees and other income 21 30 - - 2,207 4,195 - - Revenue from disposal of assets ------Natural disaster funding ------Interest income ------
Total operating revenue 9,021 87,530 - - 2,207 4,195 - -
Administered expenses Taxes paid into Consolidated Fund ------Assets transferred free of charge ------Commonwealth grants paid into ------the Consolidated Fund Payments made on behalf of the State 9,000 87,500 ------Asset sale proceeds and other income 21 30 - - 2,207 4,195 - - Natural disaster expenditure ------
Total operating expenditure 9,021 87,530 - - 2,207 4,195 - -
Revenue less expenses ------
Administered assets Funds held in Trust - - - - 4,215 2,833 - - Cash and receivables - - - - 134 1,516 - - Concession fee notes receivable ------
Total assets - - - - 4,349 4,349 - -
Administered liabilities Creditors and accruals 50 50 53 71 4,349 4,349 - - Other ------Concession fee note liabilities ------
Total liabilities 50 50 53 71 4,349 4,349 - -
Notes to the financial statements for the year ended 30 June 2005 126 Regional and Metro Metro Transport Total Rural Transport Transport Transport Safety and Infrastructure Services Infrastructure Accessibility 2005 2004 2005 2004 2005 2004 2005 2004 2005 2004 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
------645,352 - 645,352 ------68,155 - 68,155 ------553,387 - 553,387 ------19,619 - 19,619 - 74,340 25,910 - - 156,788 94,792 21,978 11,026 253,106 131,728
------9,000 87,500 - - - - 128,760 15,218 - - 128,760 15,218 - - 9,205 7,361 15,762 232 21,405 2,021 48,600 13,839 - - - - 490 2,359 - - 490 2,359 1,800 1,909 ------1,800 1,909 --301225---- 301225
76,140 27,819 9,506 7,586 301,800 112,601 1,329,896 13,047 1,728,570 252,778
------1,305,716 - 1,305,716 ------173,009 - - - 173,009 74,340 25,910 - - 156,788 94,792 21,978 11,026 253,106 131,728
------9,000 87,500 - - 9,506 7,586 18,338 9,696 2,202 2,021 32,274 23,528 1,800 1,909------1,800 1,909
76,140 27,819 9,506 7,586 175,126 277,497 1,329,896 13,047 1,601,896 417,674
----126,674 (164,896) - - 126,674 (164,896)
1,744 1,172 6,294 4,230 159 107 3,252 - 15,664 8,342 56 737 229 109 6,181 14,261 - - 6,600 16,623 ----328,739 - - - 328,739 -
1,800 1,909 6,523 4,339 335,079 14,368 3,252 - 351,003 24,965
1,996 438 4,122 6,578 3,062 2,339 3,335 83 16,967 13,908 - - 83,687 84,633 - - - - 83,687 84,633 ----10,806 - - - 10,806 -
1,996 438 87,809 91,211 13,868 2,339 3,335 83 111,460 98,541
127 DOI Annual Report 2004–05 Note 31. Administered items (continued)
In addition to the specific departmental operations which are included in the statement of financial position, statement of financial performance and statement of cash flows, the Department administers or manages activities on behalf of the State. The transactions relating to these State activities are reported as administered in this note. Administered transactions give rise to revenues, expenses, assets and liabilities and are determined on an accrual basis. Administered revenues included taxes, fees and fines and the proceeds from the sale of administered surplus land and buildings. Administered liabilities include government expenses incurred but not yet paid. Administered assets include government revenues earned but not yet collected.
Items administered on behalf of government by the portfolio’s entities of VicRoads and SEITA are also included in the department’s administered transactions for 2004-05. These administered items are disclosed in the notes to VicRoads and SEITA’s annual financial statements.
The following provides brief details of Concession Fee Notes referred to in the administered tables below:
Concession Fee Notes are received on behalf of the State from Transurban in consideration for Transurban’s obligation to pay concession fees. These notes are accounted for in the manner normally applicable to such financial instruments, namely on a discounted basis to net present value as follows: 2005 2004 $’000 $’000
City Link concession notes revenue Transferred notes - 173,009 Additional issued notes 18,013 8,621 Fair value increment 16,902 7,543 Revaluation increment 96,346 -
Total City Link concession notes revenue 131,261 189,173 City Link redevelopment revenue 194 - Net loss on assignment of City Link concession notes (2,695) -
Total City Link administered revenue 128,760 189,173 Administered assets City Link concession notes receivable Face value of notes 547,178 796,054 Discount for future value (380,424) (606,881)
Present value of concession notes receivable 166,754 189,173 City Link receivables 161,985 -
Total administered assets 328,739 189,173 Administered liabilities Deferred City Link redevelopment revenue 10,806 -
Total administered liabilities 10,806 -
Notes to the financial statements for the year ended 30 June 2005 128 2005 2004 $’000 $’000
Net loss on assignment of City Link concession notes Proceeds from assignment of notes 150,985 - Present value of assigned notes (153,680) -
Net loss on assignment of concession notes (2,695) - Reconciliation of the face value of City Link concession notes receivable Face value at the beginning of the year 796,054 - Additional issued notes 95,600 - Assignment of notes (344,476) -
Face value at the end of the year 547,178 - Reconciliation of the present value of City Link concession notes receivable Present value at the beginning of the year 189,173 - Additional issued notes 18,013 - Fair value increment 16,902 - Assignment of notes (153,680) - Revaluation increment 96,346 -
Present value at the end of the year 166,754 -
The Victorian Government and the Transurban Group entered into the following agreements on 9 June 2005:
• Deed of Assignment which provides for the Government to assign to the Transurban Group concession notes having an aggregate face value of $305.3 million where CityLink Melbourne Limited (CML) receives a tax deduction for the concession fees or $344.5 million where the concession fees are not tax deductible. The consideration for this assignment is $151 million to be settled in two instalments: $100.8 million on 1 July 2005 and $50.2 million on 1 July 2006.
• Tullamarine-Calder Redevelopment Deed which provides for the redevelopment of the interchange between the Tullamarine and the Calder Freeways. The Deed provides for the Victorian Government and CML to equally share in the net City Link revenue uplift which will result from the redevelopment with a minimum revenue benefit of $11 million for the Victorian Government to be paid on 1 July 2005. The total revenue impact will be determined for the period from six months after completion of the redevelopment to the end of the City Link concession period. Should the redevelopment not be completed by 30 June 2011, the Victorian Government is required to repay the minimum revenue benefit together with interest. In the event the minimum revenue benefit is repaid, the Victorian Government will be free to pursue a compensable enhancement claim for half of the toll revenue uplift resulting from the redevelopment of the interchange.
The financial transactions resulting from these agreements have been disclosed in this note as City Link receivables of $161.985 million (proceeds from assignment of notes and minimum revenue benefit), City Link redevelopment revenue of $0.194 million (minimum revenue benefit) and deferred City Link redevelopment revenue of $10.806 million.
129 DOI Annual Report 2004–05 Note 31. Administered items (continued)
City Link contingent assets
Deductibility of the Concession Fees
A dispute currently exists between the CityLink Melbourne Limited (CML) and the Australian Taxation Office in respect of deductibility for taxation purposes of concession fees payable by CML to the Victorian Government.
On 12 October 2004, the full bench of the Federal Court handed down a unanimous ruling that the concession fees are tax deductible as an ongoing cost of operating the City Link. On 29 April 2004 the Australian Taxation Office was granted leave to appeal the Federal Court ruling to the High Court of Australia. Determination of the appeal has not occurred at the certification date of this financial report.
In the event the High Court confirms the Federal Court ruling on the deductibility, the present value of the concession fee notes issued to the Victorian Government at balance date is estimated to increase by $23.7 million.
Compensable enhancement claim for widening of West Gate Freeway
The Melbourne City Link Concession Deed contains compensable enhancement provisions that enable the Victorian Government to claim 50 percent of additional revenue derived by CML as a result of certain events that particularly benefit City Link including changes to the adjoining road network.
On 20 May 2005, the Victorian Government lodged a compensable enhancement claim relating to works to improve the traffic flow on the West Gate Freeway between Lorimer and Montague Streets. The claim remains outstanding at the certification date of the financial report.
City Link contingent liability
An outstanding claim exists from CML pursuant to the Melbourne City Link Concession Deed, relating to an alleged material adverse effect in respect of the construction of Wurundjeri Way and certain other roads in Docklands area. In accordance with the Concession Deed, the claim was referred to an independent expert who has determined in favour of the Victorian Government. CML has now referred the claim to arbitration.
The Corporation is defending this claim on behalf of the Victorian Government and is unable to assess the likelihood of the success of the claim at the certification date of the financial report.
Note 32. Non-cash financing and investing activities
2005 2004 $’000 $’000 Restructuring of administrative arrangements 29,519 14,907 Acquisition of property, plant and equipment by means of finance leases 1,185 -
30,704 14,907
Restructuring of administrative arrangements Details with respect to the restructuring of administrative arrangements are set out in Note 3
Acquisition of property, plant and equipment by means of finance leases The acquisitions relate to motor vehicles purchases under finance leases
Notes to the financial statements for the year ended 30 June 2005 130 Note 33. Annotated receipts agreements
The following is a listing of Section 29 Annotated Receipt Agreements approved and applied by the Treasurer 2005 2004 $’000 $’000
User charges, or sales of goods and services Station pier user charges 2,207 4,195 Replacement of registration label charge 934 - Commonwealth Specific Purpose Payments Interstate road transport registration charges 11,578 11,026 Road Project Grants – ALTD 191,528 92,196
206,247 107,417
Note 34. Trust account balances
The following is a listing of trust account balances relating to trusts accounts controlled and administered by the Department. Cash and investments at 30 June 2005 2005 2004 $’000 $’000
Controlled trusts Public Transport Fund 343,822 359,979 Better Roads Victoria Trust Account 210,661 91,618 Treasury Trust Fund 1,614 2,055
Total controlled trusts 556,097 453,652 Administered trusts Treasury Trust Fund 15,763 11,052 Public Service Commuters Club Trust (99) (24)
Total administered trusts 15,664 11,028
131 DOI Annual Report 2004–05 Note 35. Impact of adopting Australian equivalents to International Financial Reporting Standards
The Department is in the process of transitioning its With certain exceptions, the Department has adopted AIFRS accounting policies and financial reporting from the current and recorded transactions that are reported in the financial Australian accounting standards to the Australian Equivalents report as though AIFRS had always applied. This also extends to International Financial Reporting Standards (AIFRS) that will to any comparative information included within the financial be applicable for the reporting period ended 30 June 2006. report. Most AIFRS accounting policy adjustments apply retrospectively and are made against accumulated funds as at The Department has taken the following steps in managing the 1 July 2004 opening balance sheet date for the its transition to AIFRS: comparative period. The exceptions to this include the deferral • established a steering committee to oversee the until 1 July 2005 of the application and adjustments for: transition to and implementation of AIFRS • AASB 132 Financial Instruments: Disclosure and • allocated internal resources and engaged expert Presentation consultants to perform a gap analysis and impact • AASB 139 Financial Instruments: Recognition and assessment of the Department’s accounting policies and Measurement financial reporting requirements upon the adoption of AIFRS and any relevant Financial Reporting Directions as • AASB 4 Insurance Contracts; issued by the Minister for Finance • AASB 1023 General Insurance Contracts (revised July • given priority to the preparation of an opening balance 2004) sheet that is in accordance with AIFRS as at 1 July 2004. • AASB 1038 Life Insurance Contracts (revised July 2004). This opening balance sheet will form the basis for preparing the Department’s first full set of AIFRS The Department has identified the following key areas where compliant financial reports for the reporting period ended its accounting policies are expected to change following the 30 June 2006 adoption of AIFRS and the estimates disclosed below are the Department’s best estimates of the quantitative impact of the • participated in training to gain an understanding of the changes as at the date of preparing the 30 June 2005 changes in reporting requirements and the processes to financial report. be undertaken in implementing AIFRS. The actual effects of transition to AIFRS may differ from the Under AIFRS, there are requirements that apply specifically estimates disclosed due to: to not-for-profit entities that are not consistent with International Financial Reporting Standards' requirements. • changes in facts and circumstances The Department is established to achieve the objectives of • ongoing work being undertaken by the AIFRS project team government in providing services free of charge or at prices significantly below their cost of production for the collective • potential amendments to AIFRS and Interpretations consumption by the community, which is incompatible with thereafter issued by the standard-setters and IFRIC generating profit as a principal objective. Consequently, • emerging accepted practice in the interpretation and where appropriate, the Department applies the paragraphs application of AIFRS and UIG Interpretations. that are in the Australian accounting standards that are applicable to not-for-profit entities.
Notes to the financial statements for the year ended 30 June 2005 132 (a) Reconciliation of net result as presented under AGAAP and AIFRS Explanatory Year ended Notes 30 June 2005 $’000
Net result as reported under AGAAP 218,317 Estimated AIFRS impact on expenses Employee benefits (i) (515) Depreciation and amortisation (ii) (609) Total estimated AIFRS impact on net result (1,124)
Net result under AIFRS 217,193
(b) Reconciliation of total assets and total liabilities as presented under AGAAP and AIFRS Explanatory Year ended Notes 30 June 2005 $’000
Total assets under AGAAP 1,142,664 Estimated AIFRS impact on assets Property, plant and equipment (ii) 299 Total estimated AIFRS impact on assets 299
Total assets under AIFRS 1,142,963
Total liabilities under AGAAP 577,654 Estimated AIFRS impact on liabilities Provisions for employee benefits (i) 1,041 Other provisions (ii) 909 Total estimated AIFRS impact on liabilities 1,950
Total liabilities under AIFRS 579,604
(c) Reconciliation of equity as presented under AGAAP and AIFRS Explanatory Year ended Notes 30 June 2005 $’000
Total equity under AGAAP 565,010 Estimated AIFRS impact on equity Accumulated fund (ii) (526) Total estimated AIFRS impact on equity (526)
Total equity under AIFRS 564,484
133 DOI Annual Report 2004–05 Note 35. Impact of adopting Australian equivalents to International Financial Reporting Standards (continued)
Explanatory notes Other – financial instruments
The Department has elected to apply the first-time adoption (i) Employee Benefits exemption available under AASB 1 First-time Adoption of Under the existing Australian accounting standard, employee Australian Equivalents to International Financial Reporting benefits such as wages and salaries, annual leave and sick Standards to defer the date of transition of AASB 139 leave are required to be measured at their nominal amount Financial Instruments: Recognition and Measurement until regardless of whether they are expected to be settled within 1 July 2005. Accordingly, there will be no quantitative impacts 12 months of the reporting date. On adoption of AIFRS, on the balance sheet as at 1 July 2004 and 30 June 2005 AASB 119 Employee Benefits requires a distinction to be and the profit and loss for the year ended 30 June 2005. made between short-term and long-term employee benefits With the exception of receivables and payables, the and for these liabilities to be measured at nominal amounts majority of financial assets and liabilities held by the and at present value respectively. AASB 119 defines short- Department are valued on the balance sheet at market term employee benefits as those that fall due wholly within value with changes in value taken to the profit and loss. twelve months after the end of the period in which the The Department has also entered into derivative contracts employees render the related service. Therefore, liabilities for for investment and risk management purposes. At the time employee benefits such as wages and salaries, annual leave of preparing this note, the Department has been unable to and sick leave are required to be measured at present value quantify the nature and financial effect of the assets and where they are not expected to be settled within 12 months liabilities arising from these contracts. of the reporting date.
The effect of the above requirements for 30 June 2005 on the Department will be an estimated increase in employee benefits liability of $1,041,001 and an increase in employee benefits expense by $515,383.
(ii) Property, plant and equipment
When an asset is initially recognised, AASB 116 Property, Plant and Equipment requires the capitalisation of costs of dismantling and removing an asset and restoring the site on which the asset was created, together with the recognition of a provision at present value, where the time value of money is material, in accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets. The provision resulting from the adoption of AIFRS relates to leasehold improvements of accommodation leases where the time value of money is immaterial. These costs (and the related provisions) are not recognised under Australian GAAP and the Department currently expenses such costs as they are incurred. Consequently, there will be an increase in depreciation expense as a result of the increase in the carrying amounts of assets.
The impact of this change for 30 June 2005 is expected to result in an increase in the carrying amount of assets by $299,441 (after depreciation), increase in depreciation expense by $609,106 and the recognition of a provision of $908,547.
Notes to the financial statements for the year ended 30 June 2005 134 APPENDIXES
APPENDIXES Output Performance Measures
The following section provides details of the outputs provided to government during 2004-05, including performance measures and costs for each output.
DOI introduced the following changes to its 2004–05 output structure:
Explanation 2004–05 Outputs New output consolidation Title change eGovernment infrastructure and ICT policy Accident blackspots and safer road infrastructure
Minor title changes were made to two outputs: eGovernment infrastructure and ICT policy, and Accident blackspots and safer road infrastructure, to better reflect their content. Output performance measures relating to the former public transport franchise agreements were reviewed and amended to reflect the new public transport partnership agreements that came into effect in April 2004.
These output statements reflect the 2004–05 output structure of DOI as published in the 2004–05 Budget Paper 3.
Notes are provided to explain elements of measurement and major variances in performance against 2004–05 targets.
Abbreviations used in tables na not applicable nm new measure
.. zero, or rounded to zero
Appendixes 136 Output Performance Measures Infrastructure Planning and Policy
These outputs involve the planned delivery of transport infrastructure and travel management strategies, port development strategies and energy policy services aimed at improving the economic and social capacity of Victoria. Key elements include integrated transport planning in regional, rural and metropolitan areas; developing a forward infrastructure investment strategy; travel demand management initiatives such as the TravelSmart program; initiatives to achieve the Government’s ports policy goals; and the provision of energy policy advice to government to secure a safe, sustainable and cost-effective energy supply to the State.
These outputs make a significant contribution to the achievement of the following government outcomes:
• growing and linking all of Victoria
• more jobs and thriving, innovative industries across Victoria
• protecting the environment for future generations
• sound financial management by providing integrated strategic planning and advice to government for the development of better, faster and more accessible transport links; providing the basis for sound investment decisions about future infrastructure development; promoting economic growth; enhancing Victoria’s competitiveness; and increasing the use of public transport.
Major outputs/deliverables Performance measures Unit of measure 2004–05 target 2004–05 actual Infrastructure strategies Produce strategies for regional, rural and metropolitan Victoria by working collaboratively across government with other development agencies and consultatively with the community to develop planning frameworks, infrastructure priorities and implementation processes.
Quantity Integrated transport studies continuing number 2 2 Transport modelling/growth areas of Wyndham, Hume, Melton, Whittlesea and Casey/Cardinia: began number 3 3 continuing number 2 2
Quality Studies completed in accordance with agreed specifications per cent 100 100
Timeliness Integrated transport studies completed: Inner Western Strategy date Sept. 2004 na1 Wyndham Growth Corridor date June 2005 June 20052
Cost Total output cost $ million 1.0 1.0
1 The Inner West Integrated Transport Study is anticipated to be 2 The Wyndham Growth Corridor now forms part of the Wyndham completed in late 2005–06. A number of initiatives in the area are Growth Area. The time lines for Growth Area planning are set by proceeding, including TravelSmart programs in the cities of DSE, which is leading the project. Maribyrnong and Moonee Valley, bicycle lockers at railway stations under the Cycle Connect Program, freight rail improvements in Tottenham, upgrading of the Calder–Tullamarine freeways interchange, structure planning for the Highpoint Area Principal Activity Centre and bus improvements.
137 DOI Annual Report 2004–05 Major outputs/deliverables Performance measures Unit of measure 2004–05 target 2004–05 actual Travel management initiatives Review travel demand management and transport policies and practices to manage travel demands in urban and rural areas.
Quantity Reducing barriers to Walking and Cycling to School Program schools visited number 33 33 TravelSmart Community Program full-scale demonstration project target households 25 000 25 000 TravelSmart Demonstration Program implementation in schools, workplaces and communities number 20 20 TravelSmart University Program number 3 3
Quality Participation rate in TravelSmart Demonstration Program: by target community per cent 50 50 by target schools and councils per cent 80 80 TravelSmart Community Program full-scale demonstration project: participation rate by target community per cent 50 50
Timeliness TravelSmart Community Program full-scale demonstration project: 50 per cent completed date June 2005 June 2005 TravelSmart Demonstration Program implementation in schools, workplaces and communities: completed date Dec. 2004 Dec. 2004 Multi Agency Access and Mobility Projects in rural and outer urban areas trial and evaluation stage completed date Jan. 2005 na3
Cost Total output cost $ million 8.3 6.84
3 Stage 2 development phase is proceeding and will be completed by September 2005. It will adopt an area-based approach to build on existing projects, such as Transport Connections Program pilot projects and Neighbourhood Renewal Projects being undertaken by DHS. 4 Payments for travel management initiatives originally scheduled for 2004–05 will be made in 2005–06.
Appendixes 138 Output Performance Measures Major outputs/deliverables Performance measures Unit of measure 2004–05 target 2004–05 actual Port development strategies Develop, manage and monitor implementation of strategies and initiatives created to deliver the Government’s ports policy goals. These services aim to improve the policy/regulatory framework for efficient and safe operation of ports and effective medium and long-term transport logistics. In addition, land-use planning ensures ongoing competitiveness of these critical trade gateways.
Quantity Channel deepening detailed investigations per cent complete 100 50 5
Quality Projects completed against agreed plans and time frames per cent 100 20 5
Timeliness Channel deepening: public exhibition of Environment Effects Statement (EES) date July 2004 July 2004 panel report submitted date Nov. 2004 Feb. 20055 Environmental approvals achieved date Feb. 2005 na 5
Cost Total output cost $ million 1.7 1.7
Energy policy services Provision of policy advice to deliver government objectives for a secure and cost effective energy supply to the State.
Quantity Exercise strategies for electricity and gas supply emergencies number 2 2 Major strategic policy advice to government number 4 7 6 Powerline relocation grants approved number 20 27 Strategic policy briefings to Portfolio Minister number 200 219
Quality Compliance with criteria for approval of powerline relocation grants per cent 100 100
Timeliness Key deliverables and projects managed on time in line with planned and agreed project timetableper cent 95 95 Responses to ministerial correspondence delivered within agreed timelines per cent 85 85
Cost Total output cost $ million 7.6 8.87
5 On 31 March 2005, the Minister for Planning announced that the project proponent is now required to prepare a supplementary EES. 6 There were additional work requirements this year to meet the Government’s energy policy development agenda in the areas of energy market reform, greenhouse response and the regulation of energy safety. 7 Variation primarily reflects Victoria’s funding contribution to the AEMC.
139 DOI Annual Report 2004–05 ICT and multimedia
These outputs focus on a range of activities designed to enhance Victoria’s strengths in the key areas of information and ICT. In addition to the strong policy and strategy development role, a number of strategic programs are being delivered in the areas of eGovernment infrastructure, industry and community development. These activities include the continued implementation of the Government’s agenda as outlined in the Growing Tomorrow’s Industries Today, Regional Connections and Putting People at the Centre strategies. A priority will be the continued implementation of the Telecommunications Purchasing and Management Strategy and other telecommunications initiatives, including those directed at improving access to, and the uptake of, broadband.
Achievements relating to new investments facilitated and announced, and jobs derived from investments facilitated, will continue to be reported through the Investment Facilitation and Attraction output of DIIRD.
These outputs make a significant contribution to the achievement of the following government outcomes:
• more jobs and thriving, innovative industries across Victoria
• growing and linking all of Victoria
• sound financial management by improving communication links throughout the State; promoting growth in information and communication industries; increasing access for Victorians to the internet and other new technologies; and improving the skills and effectiveness of the business environment.
Major outputs/deliverables Performance measures Unit of measure 2004–05 target 2004–05 actual ICT Industry and community development Delivers policy advice and projects to grow a global ICT industry in Victoria and to promote the uptake of ICT across the economy. Also involves the development, contract management and monitoring of ICT community development projects designed to promote effective use of ICT in the community.
Quantity Export development projects number 35 37 ICT research and development projects under way or completed number 1 1 ICT skills projects under way or completed number 5 5 Investment projects under development number 25 26 Minimum ICT community development projects under way or completed number 8 8 Policy reviews completed number 2 2 Projects under way or completed to increase business use of IT and electronic commerce number 6 6 Research studies under way or completed number 1 1
Quality Assessment of quarterly monitoring reports for ICT community development grant agreements undertaken per cent 100 100
Timeliness Payments made according to contracts, provided ICT community development grant recipients meet contract terms per cent 100 100
Cost Total output cost $ million 17.1 15.9
Appendixes 140 Output Performance Measures Major outputs/deliverables Performance measures Unit of measure 2004–05 target 2004–05 actual eGovernment infrastructure and ICT policy Delivers policy advice and projects in respect of eGovernment, Government voice and data networks, and Statewide ICT infrastructure and services.
Quantity eGovernment infrastructure projects under way number 5 6 eGovernment infrastructure services established and operated number 6 6 Minimum regional access projects under way or completed number 12 12 Policy reviews conducted number 1 1 Regional ICT projects assessed number 5 5
Quality Projects meet critical success factors per cent 90 90 Services operated as per service level agreements per cent 100 100
Timeliness Projects delivered in accordance with agreed plan tolerances per cent 90 90
Cost Total output cost $ million 32.5 28.88
8 Variation primarily reflects the impact in depreciation and capital asset charge costs of the rescheduling of capital projects. This has been partly offset by the accounting treatment of some projects which have been reclassified from capital to operating in line with relevant Accounting Standards.
141 DOI Annual Report 2004–05 Ports and intermodal gateways
These outputs involve initiatives to improve the efficiency, accessibility and usability of the transport system by addressing the interfaces of different components of this multifaceted system. They cover the connections between ports, rail and road transport and airports in metropolitan, regional and rural areas, and aim to optimise the use of existing transport infrastructure across the State.
These outputs make a significant contribution to the achievement of the following government outcomes:
• growing and linking all of Victoria
• more jobs and thriving, innovative industries across Victoria
• sound financial management by providing strategic direction and infrastructure to better link Melbourne and regional ports to industry, business, and agricultural centres across Victoria; and by managing the delivery of major upgrades to existing transport interchange facilities.
Major outputs/deliverables Performance measures Unit of measure 2004–05 target 2004–05 actual Ports and intermodal freight Supply services to initiate, develop, manage and monitor a range of infrastructure strategies and projects designed to promote efficient, seamless transfers between road, rail and sea modes and to reduce costs to shippers.
Quantity Freight and Logistics Strategy completed per cent 100 80 9 Geelong Port Rail Access per cent 10 4 10 Masterplan implementation for Dynon Rail Precinct (Melbourne Port@L) per cent complete 50 25 11
Quality Projects completed in accordance with agreed project specification per cent 100 65 9
Timeliness Projects completed within agreed timeframes per cent 100 65 9
Cost Total output cost $ million 2.1 2.7
Appendixes 142 Output Performance Measures Major outputs/deliverables Performance measures Unit of measure 2004–05 target 2004–05 actual Passenger interchange development Improve access to, and ease of use of, transport interchange facilities to encourage mobility and optimise use of the State’s transport infrastructure. This output is delivered by both government and private operators.
Quantity Cruise-ship visits number 15 18 12 Cruise-ship days in port number 19 19 Cruise-ship visitor days number 30 300 23 355 13
Quality Redevelopment of Spencer Street Station (Partnership Victoria) per cent complete 95 65 14
Timeliness Redevelopment of Spencer Street Station: completion of Collins Street concourse date Dec. 2004 June 200514 completion of Bourke Street concourse date Mar. 2005 Feb. 200614 completion of new roof date Dec. 2004 Oct. 200514
Cost Total output cost $ million 17.3 20.815
9 Significant parts of the draft Freight and Logistics Strategy were 14 The Spencer Street Station Authority has entered into an published in the Metropolitan Transport Plan and Victorian Ports agreement with Civic Nexus consortium to design, construct and Strategic Framework in 2004–05. The strategy is intended to be operate the new station for a 30-year concession period. Civic completed in 2005–06. Nexus has awarded a design and construction contract to Leighton Contractors. Leighton Contractors has announced that it 10 The project was stalled when Freight Australia controlled the cannot meet contractual project timeframes due to a wide range Victorian intrastate rail network. Negotiations on project of factors, including site access issues, difficulties in constructing implementation are proceeding with the new lessee, Pacific over a live operating environment, discovery of unexpected on-site National (PN). contamination, off-site manufacturing and procurement issues, 11 The plan is proposed to be finalised in 2005–06. and construction methodology challenges. 12 Target was exceeded due to some smaller cruise ships visiting 15 Variation primarily reflects the rescheduling of costs originally regional ports. planned for 2003–04 in 2004–05. 13 The downturn in numbers was substantially due to four cancellations of cruiseship visits due to bad weather.
143 DOI Annual Report 2004–05 Regional and rural transport services
These outputs involve the delivery of quality public transport services to regional and rural areas of Victoria through contractual arrangements with private operators and V/Line. These services include intrastate and interstate rail services, route and school bus services. Contracts with service providers are managed to ensure that service delivery is in accordance with contractually agreed standards and that committed investment levels of rolling stock and new buses are delivered.
These outputs make a significant contribution to the achievement of the following government outcomes:
• growing and linking all of Victoria
• building cohesive communities and reducing inequalities by managing contractual arrangements for the delivery of quality public transport services in regional and rural areas.
Major outputs/deliverables Performance measures Unit of measure 2004–05 target 2004–05 actual Country/Interstate rail services Manage contractual arrangements with private operators and V/Line for the provision of quality rail passenger and associated road coach services to regional and rural areas of Victoria. Contractual performance standards are reflected in the performance measures for the delivery of the output.
Quantity Maintain freight gates for the provision of general freight and charity services number 28 28 Services delivered per cent 99.5 99.1 Total kilometres timetabled million 11.3 11.2
Quality Claims against total general freight consignments per cent 0.3 0.3 Customer Satisfaction Index score 72 70.516 Passengers carried million 7.5 6.9 Rolling stock annual plan meets the specifications in the Partnership Agreement per cent 100 100
Timeliness Rolling stock annual plan is received on time date Apr. 2005 Apr. 2005 Services arriving at destination no more than 59 seconds before and less than 5 minutes 59 seconds after timetable per cent 92.5 85.117
Cost Total output cost $ million 171.4 174.7
Appendixes 144 Output Performance Measures Major outputs/deliverables Performance measures Unit of measure 2004–05 target 2004–05 actual Country bus services Manage the contractual arrangements with private operators for the delivery of bus services in accordance with the contract service standards and provide air-conditioning on bus replacements.
Quantity Timetabled bus services delivered per cent 99 99 Total kilometres timetabled million 17.4 17.2
Quality Air-conditioned buses in service per cent 24 22 Passengers carried million 12.1 11.118
Timeliness Services within 5 minutes of timetable per cent 99 99
Cost Total output cost $ million 51.4 54.4
School bus services Manage the contractual arrangements with private operators for the delivery of bus services in accordance with the contract service standards and implement approved initiatives for School Bus Services, including air-conditioning on bus replacements.
Quantity Kilometres scheduled million 33.4 33.5 Timetabled bus services delivered per cent 99 99
Quality Air-conditioned school buses in service per cent 31.5 31
Timeliness Services within 5 minutes of timetable per cent 99 99
Cost Total output cost $ million 152.8 151.4
16 Customer satisfaction with V/Line services was lower than target restrictions and service disruptions associated with this project. due primarily to the deterioration in punctuality of V/Line services Services have also been affected by the major works under way and the effect on passengers displaced to bus services when rail at Spencer Street Station, which have often severely reduced the corridors have been closed for RFR works. This has generally availability of platforms. This has affected V/Line’s ability to make resulted in delays in journey times and an associated decline in adjustments to any delayed or affected services. Punctuality of customer satisfaction and patronage. The current major V/Line services is expected to improve during 2005–06. redevelopment of Spencer Street Station and relocation of country 18 The 2004–05 target was based on earlier patronage estimates coaches to a more remote temporary bus station have also which proved inappropriate. Actual patronage in 2004–05 was the contributed to the decline in customer satisfaction. same as for 2003–04. Patronage estimates for 2005–06 have been 17 This figure reflects the short-term impacts of major projects based on the appropriate patronage base. being progressed during 2004–05. The major rebuilding of rail infrastructure on the Ballarat, Bendigo, Geelong and Latrobe Valley RFR corridors has impacted on punctuality due to speed
145 DOI Annual Report 2004–05 Regional and rural transport infrastructure
These outputs involve the development and maintenance of regional and rural transport networks by implementing major road projects, regional and rural rail projects and monitoring the quality of rail infrastructure as defined in the contracts with private operators and V/Line. They facilitate the movement of goods and passengers in an efficient, safe and timely manner.
These outputs make a significant contribution to the achievement of the following government outcomes:
• growing and linking all of Victoria
• more jobs and thriving, innovative industries across Victoria
• sound financial management by building faster, better and more accessible transport links to and between regional and rural areas; providing better freight links between ports, industry and business; and investing in long-term transport infrastructure improvements across the State.
Appendixes 146 Output Performance Measures Major outputs/deliverables Performance measures Unit of measure 2004–05 target 2004–05 actual Regional public transport passenger and freight development Ensure delivery of the Government’s commitment to regional and rural transport infrastructure development and monitor the quality of rail infrastructure as set out in the contracts with the private operators and V/Line.
Quantity Projects continuing: rail gauge standardisation and Wodonga Rail Bypass number 2 2 RFR construction projects:19 Ballarat per cent complete 95 89 20 Bendigo per cent complete 98 79 21 Geelong per cent complete 100 93 20 Latrobe per cent complete 100 77 22 Country passenger rail services reintroduction project per cent complete 60 60
Quality Ensure that the infrastructure lessee meets ride-quality specification on all passenger lines per cent compliance 100 na 23
Timeliness Projects provided within agreed budget and time frames (where government funded) per cent 100 100
Cost Total output cost $ million 68.4 49.724
19 These figures are a financial measure (actual expenditure against 21 Contractual variations that are covered by the project budget the project budget), but also give an indication of project include strengthening some of the many bridges on the Bendigo completion at the end of the 2004–05 financial year. line and building the revised track design north of Kyneton with longer passing loops developed in response to community The project budget and timing for completion has been feedback. renegotiated to allow for: 22 Contractual variations that are covered by the project budget - the installation of a more comprehensive train stopping safety include removal of around 40 km of redundant and unsightly system, in line with recommendations from Victoria’s Public overhead cables and gantries and more complex signalling Transport Safety Regulator design to further improve flexible train operations with the new - incorporating additional safety, infrastructure and operational bidirectional running system. requirements of the wide range of Victorian rail stakeholders, 23 Ride quality was not measured in 2004–05, primarily due to a including infrastructure managers and rail operators. This change in ownership of the one specially equipped vehicle, and includes compensation to freight operators and major the consequent need for re-accreditation. During 2004–05, regular changes in stakeholder expectations about signalling location line inspections and infrastructure monitoring were undertaken on requirements all lines to ensure safety standards were met. - contractual variations that are covered by the project budget are 24 Variation reflects change in accounting treatment of depreciation comparable to industry standards and require additional design on rail infrastructure. and construction works. 20 Contractual variations that are covered by the project budget include the installation of 60 kg concrete turnouts which will further improve the strength of the track and provide for improved train operations.
147 DOI Annual Report 2004–05 Major outputs/deliverables Performance measures Unit of measure 2004–05 target 2004–05 actual Regional road projects Reduce travel time, lower transport operating costs, and upgrade the quality of roads with respect to safety and increased access through improved road transport links. Complete major road projects to regional centres, add new roads and paving, strengthen bridges, implement improvements to increase safety at intersections and along road lengths, complete regional arterial road projects and improve road transport links to regional and rural centres.
Quantity Bridge strengthening and replacement projects: in progress number 7 3 25 completed number 23 24 26 begun number 22 23 27 Major projects/road improvements: in progress number 4 4 Other road improvement/road construction projects: in progress number 6 4 28 completed number 13 10 29 begun number 17 15 30 Road assistance grants announced number 25 25
Quality Projects delivered in accordance with agreed scope and standard per cent 98 100
Timeliness Bridge strengthening and replacement projects completed earlier than planned per cent 5 21.731 Road improvements completed earlier than planned per cent 5 5 32
Cost Total output cost $ million 146.1 175.433
Appendixes 148 Output Performance Measures Major outputs/deliverables Performance measures Unit of measure 2004–05 target 2004–05 actual Regional road network maintenance Provide maintenance for declared rural arterial roads, including pavement, bridges, roadside and traffic facilitation components, covering routine and periodic maintenance, rehabilitation and operational supervision of tasks/projects.
Quantity Bridges treated (periodic maintenance and rehabilitation) number 292 386 34 Lane km of network maintained km 40 400 40 400 Sq metres resurfaced (‘000m2) 10 300 10 597
Quality Bridges mass limited per cent 1.7 1.6 Bridges with Level 4 defects per cent 3.2 3.3 Network >4.2 IRI35 per cent 10.2 9.7 Network >5.3 IRI per cent 2.6 2.3 Network to intervention levels per cent 90 90 Smooth travel exposure36 per cent 93 93
Timeliness Annual program completed per cent 100 100
Cost Total output cost $ million 161.5 168.0
25 Three projects were completed that were targeted to be in 30 Three projects did not begin due to issues surrounding land and progress and one project did not start as scheduled. rail access, late award of a contract and a schedule variance, and one project was withdrawn from programmed works. Two projects 26 Three projects were completed earlier than targeted, two projects began that were not included in the original target. were completed that were not included in the original target. Four projects were not completed due to late award of contracts and 31 Five out of 23 bridge strengthening and replacement projects scheduling variances. were completed earlier than planned. 27 Two projects began that were not included in the original target 32 One project out of the targeted 17 was completed earlier than and one project was delayed due to heritage and environmental planned. issues. 33 Variation primarily reflects a reclassification of activities from 28 Two projects did not start as targeted due to late award of a capital to operating. contract and a scheduling variance, and are subsequently not yet 34 A greater number of smaller projects proceeded than was planned. in progress. 35 International Roughness Index (IRI): community surveys for 29 Four projects were not completed due to rail access issues and comfort have indicated that road surfaces having a count greater the late award of contracts, and one project was withdrawn from than 4.2 IRI were considered ‘moderately rough’, while counts programmed works. Two projects were completed that were not above 5.3 IRI were considered ‘very rough’. included in the original target. 36 Smooth travel exposure is measured as the percentage of travel undertaken each year on roads with a roughness condition < 4.2 IRI.
149 DOI Annual Report 2004–05 Metropolitan transport services
These outputs involve the delivery of a quality public transport service to the metropolitan area through contractual arrangements with private operators. These include rail, tram and bus services. Contracts with private operators are managed to ensure that service provision is in accordance with contractually agreed standards and that the committed investment levels for rolling stock and new buses are delivered.
These outputs make a significant contribution to the achievement of the following government outcomes:
• growing and linking all of Victoria
• building cohesive communities and reducing inequalities
• protecting the environment for future generations
• sound financial management by managing contractual arrangements for the delivery of quality public transport services in metropolitan Melbourne.
Appendixes 150 Output Performance Measures Major outputs/deliverables Performance measures Unit of measure 2004–05 target 2004–05 actual Metropolitan train services Manage the contractual arrangements with the private operator for the delivery of quality metropolitan train services. Contractual performance standards are reflected in the performance measures for the delivery of outputs.
Quantity Services delivered per cent 99.5 98.7 Total kilometres timetabled million 16.8 16.7
Quality Customer Satisfaction Index score 71.2 65.437 Passengers carried million 135.4 146 38 Rolling stock annual plan meets specifications in the Partnership Agreement per cent 100 100
Timeliness Rolling stock annual plan is received on time date Apr. 2005 Apr. 2005 Services arriving at destination no more than 59 seconds before and less than 5 minutes 59 seconds after timetable per cent 97.1 93.939
Cost Total output cost $ million 783.2 759.9
37 Customer satisfaction with metropolitan train services was lower Analysis of factors related to patronage (such as farebox, than target due primarily to poorer than expected operational passenger counts and ticketing data) indicate overall patronage performance (service delivery and punctuality). growth of around 2.5 per cent for metropolitan public transport (train: 4 per cent; tram: 2 per cent; and bus: stable). 38 Patronage estimates for the three metropolitan modes are based on a new and improved measurement methodology for 2004–05. 39 Metropolitan train performance (service delivery and punctuality) This methodology involves factoring up ticket validations from the over 2004–05 suffered as a result of driver shortages and rolling Automatic Ticketing System database with a ‘validation rate’ stock faults (including vandalism and teething problems with obtained from surveys to obtain an estimate of patronage for each new trains). mode. This change in methodology means a step-change in patronage estimates from 2003-04 to 2004–05 and this needs to be considered when comparing estimates across years.
151 DOI Annual Report 2004–05 Major outputs/deliverables Performance measures Unit of measure 2004–05 target 2004–05 actual Metropolitan tram services Manage the contractual arrangements with the private operator for the delivery of quality metropolitan tram services. Contractual performance standards are reflected in the performance measures for the delivery of outputs.
Quantity Service delivery per cent 99.1 99.4 Total kilometres timetabled million 22 21.9
Quality Customer satisfaction index score 71.4 71.2 Passengers carried million 139.9 145.340 Rolling stock annual plan meets the specifications in the Partnership Agreement per cent 100 100 Services completing journey per cent 99.2 97.6
Timeliness Rolling stock annual plan is received on time date Apr 2005 Apr 2005 Services departing the 2nd, 3rd and 4th monitoring points (average) no more than 59 seconds before and less than 5 minutes 59 seconds after timetable per cent 82 82
Cost Total output cost $ million 369.8 335.641
Appendixes 152 Output Performance Measures Major outputs/deliverables Performance measures Unit of measure 2004–05 target 2004–05 actual Metropolitan bus services Manage the contractual arrangements with private operators for the delivery of quality metropolitan bus services in accordance with the contract service standards and provide air-conditioning on bus replacements.
Quantity Kilometres scheduled million 75 75.2 Timetabled bus services delivered per cent 99 99.9
Quality Air-conditioned and low-floor route buses in service per cent 36 40 Customer satisfaction index score 72 69.242 Passengers carried million 94 90 43
Timeliness Services within 5 minutes of timetable per cent 95 93.5
Cost Total output cost $ million 330.1 319.1
40 Refer to footnote 38 on page 151. 41 Variation primarily reflects change in accounting treatment of infrastructure works that have been reclassified from an operating to capital expenditure. 42 Customer satisfaction surveys have identified the need for improvements in service delivery (improved punctuality, more frequent services and more weekend services) as the key means of increasing customer satisfaction with buses. Additional funding has been provided in 2005–06 to implement new services in critical areas. 43 Refer to footnote 38 on page 151.
153 DOI Annual Report 2004–05 Metropolitan transport infrastructure and public development projects
These outputs involve the development and maintenance of metropolitan road networks and the implementation of major civic and road projects, the management and delivery of major public construction and land development projects, and the development of metropolitan train and tram infrastructure as set out in the contracts with the private operators. They deliver major parts of the transport network in the metropolitan area and are aimed at facilitating the movement of goods and passengers in an efficient, timely and safe manner to their destinations.
These outputs make a significant contribution to the achievement of the following government outcomes:
• growing and linking all of Victoria
• more jobs and thriving, innovative industries across Victoria
• protecting the environment for future generations
• sound financial management by building faster, better and more accessible transport links throughout the metropolitan area; providing better freight links between the Port of Melbourne and industry in Melbourne; investing in long-term transport infrastructure improvements; and managing the delivery of major public construction projects.
Appendixes 154 Output Performance Measures Major outputs/deliverables Performance measures Unit of measure 2004–05 target 2004–05 actual Metropolitan public transport development Provide enhanced transport network planning capacity to ensure delivery of the Government’s commitment to metropolitan public transport infrastructure development and to monitor the quality of rail infrastructure as set out in the contracts with the private operators.
Quantity Craigieburn rail electrification per cent complete 15 13 Vermont South Tram Extension per cent complete 75 75
Quality Ensure that nominated capital projects are delivered within scheduled and subsequent quarter per cent 85 76.844 Payments to operators for defined maintenance and renewal works are undertaken within the time period specified in the Annual Works Plan per cent 90 81 45 Planned infrastructure asset renewal/maintenance activities as specified in the Annual Works Plans are delivered within projected timelines per cent 90 62 46
Timeliness Ensure metropolitan train and tram operators’ Annual Works Plans are received on time date Apr. 2005 Apr. 2005 Ensure operators’ reports of asset and rolling stock key performance indicators are received on time per cent 100 100
Cost Total output cost $ million 18.3 12.147
Source: DOI 44 Delays to a number of projects have impacted on performance 45 Renewal works at train substations were delayed during the year against this measure. The Tram Passenger Information Display due to asbestos issues. Some renewal works were also carried project has been delayed due to difficulties in arranging power over beyond the period specified in the Annual Works Plan. This supply to the sites and determining tram stop configuration on the has impacted on both the delivery of defined maintenance and Tram Priority Project routes. Train substation works cannot be renewal works and payments to operators for these works. completed until redevelopment work by a third party at Melbourne 46 Refer to footnote 45. Central and Spencer Street Station is completed. The signal overlaps project has been delayed due to a shortage of signalling 47 Variation reflects a change to the accounting treatment of design/construction resources. Completion of Huntingdale Car depreciation of rail infrastructure. Park was delayed due to an unexpected requirement to relocate a fibre-optic cable.
155 DOI Annual Report 2004–05 Major outputs/deliverables Performance measures Unit of measure 2004–05 target 2004–05 actual Major metropolitan road projects Improve the performance of Melbourne’s arterial road network by carrying out large- scale projects that address network discontinuities and bottlenecks by improving access, decreasing the variability of travel time, and reducing transport costs.
Quantity Projects continuing number 3 3 Mitcham Frankston Freeway: Community Advisory Group (including concessionaire) meets to address community issues number of meetings 12 11 land acquisitions completed per cent 100 98
Quality Projects delivered in accordance with agreed scope and standards per cent 100 100
Timeliness Mitcham Frankston Freeway: contractual closure achieved date Oct. 2004 Oct. 2004 financial closure achieved date Nov. 2004 Nov. 2004 design and construction phase commenced date Dec. 2004 Dec. 2004 Projects delivered in accordance with original planned completion date per cent 95 95
Cost Total output cost $ million 117.0 127.248
Appendixes 156 Output Performance Measures Major outputs/deliverables Performance measures Unit of measure 2004–05 target 2004–05 actual Metropolitan arterial road links Improve the safety and performance of Melbourne’s arterial road network by carrying out projects to address deficiencies and bottlenecks. Provide new link roads and intersection improvements that improve access, decrease the variability of travel time, increase residential amenity and reduce transport costs, particularly in the outer suburbs.
Quantity Bridge strengthening and replacement: projects completed number 2 2 projects in progress number 1 .. Pavement widening (including shoulders): projects in progress km 7.4 5.649 projects starting km 7.4 5.650 Road improvements (including intersections and realignments): projects completed number 1 ..51 projects in progress number 3 2 52 projects starting number 2 1 53 Road projects covering duplications and overtaking lanes: projects completed lane km 7.8 4.454 projects in progress lane km 40.5 40.5 projects starting lane km 40.5 40.5
Quality Projects delivered without variance to planned scope and standards per cent 95 100
Timeliness Projects delivered in accordance with the original planned completion date per cent 95 60 55
Cost Total output cost $ million 157.4 189.256
Source: DOI 48 Variation primarily reflects a reclassification of activities from 53 Project in conjunction with VicUrban now to start in 2005–06. capital to operating. 54 One project was delayed due to late awarding of contract. 49 One pavement widening project did not commence as scheduled. 55 Two projects out of the expected five were not completed by 50 One pavement widening project was delayed due to native the original planned date. vegetation issues. 56 Variation primarily reflects a reclassification of activities from 51 One road improvement project was not completed due to capital to operating. industrial relations issues. 52 Project in conjunction with VicUrban now to start in 2005–06.
157 DOI Annual Report 2004–05 Major outputs/deliverables Performance measures Unit of measure 2004–05 target 2004–05 actual Metropolitan road network maintenance Provide the annual maintenance program for declared metropolitan arterial roads, including pavement, bridges, roadside and traffic facility components, covering routine and periodic maintenance, rehabilitation and operational management tasks.
Quantity Bridges treated (periodic maintenance and rehabilitation) number 81 66 57 Lane–km of network maintained km 10 600 10 600 Square metres resurfaced (‘000m2) 1 880 1 961
Quality Bridges mass limited per cent 2.4 2.158 Bridges with level 4 defects per cent 1.1 1.359 Network >4.2 IRI per cent 12.7 12.2 Network >5.3 IRI per cent 4.5 3.860 Network to intervention levels per cent 90 90 Smooth travel exposure per cent 91 91
Timeliness Annual program completed per cent 100 100
Cost Total output cost $ million 161.7 167.7
Appendixes 158 Output Performance Measures Major outputs/deliverables Performance measures Unit of measure 2004–05 target 2004–05 actual Major public construction and land development Management and delivery of nominated public construction and land development projects, the coordination of development projects and associated feasibility studies.
Quantity Birrarung Marr pedestrian bridge per cent complete 70 70 Jolimont Station improvements per cent complete 100 100 Yarra Precinct lighting works per cent complete 65 65 Project feasibility studies conducted number 5 5
Quality Delivery of nominated projects complies with agreed plans per cent 100 100
Timeliness Bundoora Land Development: final development payment date Aug. 2004 Aug. 2004 Complete construction of Bonegilla Migrant Settlement Centre date Sept. 2004 Sept. 2004 Hazardous waste siting: statutory approval given for soil recycling facility at preferred site date Dec. 2004 na61 application lodged for statutory approval for a long-term containment facility date Aug. 2004 na62 statutory approval given for long-term containment facility date May 2005 na63 begin process for appointment of commercial operator for long term containment facility date Jun. 2005 na64
Cost Total output cost $ million 1.6 17.565
57 Works were behind schedule due to project complexity, 63 Delays were experienced in preparing the technical design report particularly in obtaining specialist resources and material for and the need to conduct additional EES studies requested by the timber bridge repairs. community. Statutory approval is now expected by June 2006. The extended target date also provides for completion of 58 The delivery of new structures increased the base total of bridges additional federal government approval process under the thus resulting in a percentage decrease in mass limited structures. Environment Protection and Biodiversity Conservation Act 1999. 59 Percentage measure increase due to two projects falling behind 64 New target July 2006, this stage in the process is dependent on planned delivery schedule. achieving statutory approvals. 60 The outcome of the program achieved better results than predicted. 65 Reflects projects approved post-Budget including St Helier’s 61 Target has moved to early 2006. Proponent lodged statutory Convent Precinct Project and gas remediation works at application in July 2005. Docklands. 62 Target has moved to September 2005. EES exhibition and community consultation process expected to commence in October 2005.
159 DOI Annual Report 2004–05 Transport safety and accessibility
These outputs involve safety initiatives for road, public transport and waterway users. This is provided through the application of performance-based standards to regulate transport providers, and to reduce the cost of regulations on business, while raising safety and access levels for the community through improved transport regulation, reform, education, environmental response strategies and prevention programs. It includes services to improve accessibility and subsidised taxi travel for those unable to use other public transport.
These outputs make a significant contribution to the achievement of the following government outcomes:
• safe streets, homes and workplaces
• building cohesive communities and reducing inequalities by improving the safety of the State’s roads, public transport and waterways; regulating and monitoring the provision of transport services; and improving access for the disabled to transport facilities.
Major outputs/deliverables Performance measures Unit of measure 2004–05 target 2004–05 actual Taxi, hire car and tow truck regulation Administer, regulate and monitor taxis, hire cars, special purpose vehicles, restricted hire cars, tow trucks and the driving instructor industry, and ensure public transport safety standards are maintained and advanced through the implementation of new initiatives.
Quantity Commercial passenger vehicle driver certificates issued number 23 000 23 696 Commercial passenger vehicle licence transactions : taxis number 1 900 1901 others number 350 524 66 Commercial passenger vehicles audited: taxis, hire cars, etc. number 10 000 12 551 67 Driver certificates, authorities and instructor applications: suspensions, revocations and refusals number 180 234 68 Driver instructor authorities processed number 450 719 69 Tow-truck driver authorities issued number 1 100 708 70 Tow-truck licence transactions number 420 421
Quality Taxi service complaints investigated number 700 1 488 71 Taxis and tow trucks conform to quality standards per cent >94 84 72 Tow Truck Allocation Centre calls answered within 45 seconds per cent 96 96
Timeliness Preliminary investigation of serious taxi service complaints completed within 10 working days per cent 92 92
Cost Total output cost $ million 3.3 4.873
Appendixes 160 Output Performance Measures Major outputs/deliverables Performance measures Unit of measure 2004–05 target 2004–05 actual Accessible transport initiatives Provide access for the disabled to transport facilities by monitoring obligations under the Disability Discrimination Act 1992 (Cwlth), programs of the private operators and implementation of direct government-funded initiatives. This includes the MPTP, which subsidises taxi services for those unable to use other public transport.
Quantity Applications assessed number 24 000 16 004 74 Customer telephone enquiries number (‘000) 64 117 75 Number of transport access sites treated number 172 169 Taxi trips passenger only number (‘000) 5 400 4 134 76 with wheelchair number (‘000) 500 509
Quality Projects delivered to agreed scope or standard per cent 100 100
Timeliness Applications completed within 10 working days per cent 94 94 Works completed within agreed time frames per cent 100 100
Cost Total output cost $ million 59.1 52.677
Source: DOI 66 This measure reflects external demand; all transactions related to 73 Variation primarily reflects additional resources to meet growth in this measure were duly processed. service requests. 67 Increased compliance resources have led to an additional number of 74 All applications submitted were assessed. The reduction in audits of taxis, hire cars and other commercial passenger vehicles. applications submitted is due to changes in the eligibility criteria for membership of the MPTP. 68 There has been an increase in the number of applicants for commercial passenger vehicle licenses (primarily taxis) who do 75 Customer phone enquiries are above target due to changes to not meet the prescribed standards, and these applications have the MPTP. been refused. 76 Reflects changes to the MPTP eligibility and usage criteria 69 Refer to footnote 66. introduced in 2004 to ensure the Program continued to provide assistance to members of the community with severe and 70 Refer to footnote 66. permanent disabilities who cannot use public transport. 71 The availability of a 24-hour complaint line has contributed to an 77 Refer to footnote 76. increase in the number of complaints being formally lodged. 72 The below-target performance reflects the fact that many minor infringements which previously resulted only in warnings are now treated as breaches of quality standards.
161 DOI Annual Report 2004–05 Major outputs/deliverables Performance measures Unit of measure 2004–05 target 2004–05 actual Accident blackspots and safer road infrastructure Deliver an agreed program of remedial actions to upgrade identified high-accident black spot/black length areas of roads and high-crash-risk locations and lengths of road, to reduce the occurrence of regular, severe road accidents that have high social costs to the community.
Quantity Accident Blackspots Program: projects to be completed number 14 9 78 Road Safety Infrastructure Program per cent 25 37 79
Quality Projects completed to agreed scope and standard per cent 100 100
Timeliness Programmed work to be completed in accordance with agreed time frames per cent 100 100
Cost Total output cost $ million 2.1 1.9
Traffic and road use management improvements Provide and undertake low-cost traffic improvement projects and services, including priority for public transport, traffic priority signaling and information services, incident management, and the administration of road freight regulatory reform for greater efficiency of freight movement.
Quantity Road user improvement projects number 167 108 80 Traffic management projects number 3 4 81
Quality Projects delivered in accordance with agreed scope and standards per cent 100 100
Timeliness Program works completed within agreed timeframes per cent 100 81
Cost Total output cost $ million 29.7 27.7
Appendixes 162 Output Performance Measures Major outputs/deliverables Performance measures Unit of measure 2004–05 target 2004–05 actual Vehicle and driver regulation Provision of a vehicle registration and driver licensing service to provide a framework covering the integrity of the road user environment, ensuring the registration of trained drivers, roadworthy vehicles, and the ability to easily trace missing vehicles.
Quantity Driver licences renewed number (‘000) 512 522 New driver licences issued number (‘000) 121 119 New vehicle registrations issued number (‘000) 467 474 Vehicle and driver information requests processed number (‘000) 1 568 1 494 Vehicle registration transfers number (‘000) 939 925 Vehicle registrations renewed number (‘000) 4 013 4 008
Quality Currency of registration and licensing records per cent >99 99 User satisfaction with registration and licensing per cent >90 85
Timeliness Customers served within 10 minutes in licensing and registration offices per cent >80 82 Percentage of central calls answered within 30 seconds per cent 80 70 82
Cost Total output cost $ million 103.0 103.6
78 Five projects were delayed but are now progressing. 81 One Traffic Improvement Project was programmed to be delivered over two years, so it will not be completed until 2005–06. However, 79 Project delivery performance was higher than anticipated. two additional Traffic Improvement Projects were completed. 80 Completed projects were lower reflecting the increasing 82 Target was not achieved due to staff turnover, and changes in complexity of new programs, for example, Tram Priority, SmartBus timing of registration and licence renewals that increased call and Freight Accessibility and Reliability Improvements; which have volumes. required much more extensive consultation with stakeholders, resolution of technology issues and the granting of heritage, planning and environmental permits by councils.
163 DOI Annual Report 2004–05 Major outputs/deliverables Performance measures Unit of measure 2004–05 target 2004–05 actual Road safety initiatives and regulation Provision of a safety program that embraces two main areas, road user education and the upgrading of aspects of the road infrastructure system that have proved dangerous.
Quantity Road safety projects/initiatives: safer Roads number 56 47 83 safer Vehicles number 4 4 safer Road Users number 21 19 Road safety projects/initiatives: school speed zones per cent complete 100 100
Quality Projects completed within specified scope and standards per cent 100 100
Timeliness Programmed works completed within agreed time frames per cent 100 100
Cost Total output cost $ million 61.1 61.7
Public transport safety initiatives and regulation Maintain and advance public transport safety standards through the implementation of new initiatives and operator accreditation systems.
Quantity Safety initiatives: bus mechanical inspections number 50 44 84 rail safety activity compliance inspections (unannounced audits) number 120 115
Quality Audit observations closed out by next compliance audit per cent 100 100 Material changes to accreditation responded with feedback within two weeks per cent 100 91 Non-conformances/compliances closed out within 14 day–bus per cent compliance 100 100 Non-conformances/compliances closed out within two months–rail per cent compliance 100 97.5
Timeliness Audits carried out: bus per cent 50 52.8 rail (within 12 months) per cent 100 100 Follow up of critical defect notices within five days per cent 90 100 85 Review of responses of inquiry within six weeks per cent 90 100 86
Cost Total output cost $ million 11.7 12.4
Appendixes 164 Output Performance Measures Major outputs/deliverables Performance measures Unit of measure 2004–05 target 2004–05 actual Marine safety initiatives and regulation Develop and administer the policy/regulatory framework for the safe and efficient operation of commercial and recreational vessels in Victorian waters and implement a range of programs and initiatives designed to achieve the Government’s marine safety objectives. Facilitate the marine pollution response system and ballast water and hull-fouling regime to prevent pests entering coastal waters.
Quantity Audit compliance with Recreational Boating Regulations: boats audited per cent 4 2.3 87 waterways audited per cent 8 60 88 Commercial vessels surveyed number 1 500 1 593 Marine operators certificates issued number 450 367 89 Overall increase in the number of licensed recreational boat operators per cent 5 10 90 Safety audits performed on commercial vessels number 150 294 91 Vessel compliance with registration requirements per cent >95 95
Quality Reported oil pollution incidents responded to and resolved per cent 100 100
Timeliness Oil pollution response capability to react within four hours of reporting for small spills per cent coastal coverage 100 100
Cost Total output cost $ million 14.6 13.2
83 Several road projects were delayed but are now progressing. 87 The Water Police reported a less active boating season which can be attributed to generally poor weather conditions, exacerbated by 84 Compliance of public transport safety management systems is drought-affected water levels in inland waterways popular for monitored through a rigorous system of audits and inspections. To recreational boating. supplement the bus operator audit program a series of bus mechanical inspections are scheduled. Five-yearly bus 88 As part of the boating safety program, MSV appointed an accreditation renewals and associated audits during 2004–05 additional six Boating Safety Officers who undertook more audits have diverted resources away from bus mechanical inspections. than targeted. In the future, the refocus of resources will enable mechanical 89 Lower than anticipated demand for marine certification courses inspections targets to be met. during 2004–05 resulted in fewer candidates applying to MSV for 85 The 2004–05 target was exceeded due to a refocus of resources operator certificates. to ensure that all reviews and inquiries were completed in a timely 90 Target exceeded due to increased number of Victorian residents manner. converting interstate licences to Victorian licences. 86 The reduction in applications for accreditation and variations of 91 Safety audits are spot checks carried out to ensure commercial accreditation has enabled all inquiries to be followed up within the vessels are maintained to survey requirements. The target for designated time frame. 2004–05 was exceeded as a result of additional audits undertaken by the Water Police.
165 DOI Annual Report 2004–05 Legislation administered as at 30 June 2005
As at 30 June 2005, the following legislation was Local Government Act 1989 administered by the Minister for Transport, the Minister for Clauses 4 and 9(3) of Schedule 11 and section 123, in so far Major Projects, the Minister for Energy Industries and as it relates to the revocation of local laws made pursuant to Resources and the Minister for Information and the powers conferred by those clauses by reason of section Communication Technology. 207 of the Act.
(This Act is otherwise administered by the Minister for Local Acts administered by the Minister for Transport Government and the Attorney-General.) This Act provides Border Railways Act 1922 generally for matters to do with local government in Victoria. The provisions administered by the Minister for Transport This Act ratifies an agreement between the States of relate to traffic control. Victoria and NSW as to the construction, maintenance and operation of railway lines and the construction and Marine Act 1988 maintenance of bridges across the Murray River. This Act establishes the Director of Marine Safety and Chattel Securities Act 1987 provides for the objects, powers and functions of the Director. In particular, the Director regulates marine safety Part 3 (the remaining provisions are administered by the through the exercise of its powers and functions. The Act Minister for Consumer Affairs). This Act makes provision for also provides for registration of vessels, regulation of the security interests in motor vehicles, trailers and vessels, operation of vessels, offences involving alcohol, prevention including registration of interests. Part 3 provides the of pollution of State waters, the adoption of certain registration requirements for security interests. international conventions, enforcement of various offences through the issue of marine infringement notices and for Crown Land (Reserves) Act 1978 other matters. Only in so far as it relates to the land shown as Crown Allotment 18, section 12, City of Port Melbourne, Parish of Melbourne City Link Act 1995 Melbourne South, as shown on Original Plan No. 119746-A The Act ratifies the Agreement between the State and lodged in the Central Plan Office – (LA/32/0012) known as Transurban relating to the construction and operation of the Station Pier. Melbourne City Link; gives the State certain powers in relation (The remaining provisions are administered by the Minister to land affected by the project; gives the Link Corporation for Planning and the Minister for Finance.) certain powers in relation to roads in the project area; and empowers the fixing, charging and collection of tolls in Land Act 1958 relation to the use of vehicles in toll zones. In so far as it relates to the exercise of power relating to the leases and licences under Subdivisions 1 and 2 of Division 9 Mitcham-Frankston Project Act 2004 of Part 1 in respect of the land described as Allotment 18 of The main purposes of this Act are to empower the State to Section 12, City of Port Melbourne, Parish of Melbourne enter into an agreement for the design, construction, South, being the land in Certified Plan No. 119746 lodged in operation, maintenance and management of the the Central Plan Office of DSE, known as Station Pier. Mitcham–Frankston Freeway; to provide for the collection and enforcement of tolls relating to use of the Freeway; to (This Act is otherwise administered by the Attorney-General, confer powers on SEITA, relating to land required for/affected the Minister for Corrections, the Minister for Finance, the by the project; to provide procedures dealing with the Minister for Health, and the Minister for Planning.) interface between Utilities and the Freeway Corporation relating to Utility Infrastructure and the project; to confer other powers on the Minister, SEITA, the Freeway Corporation and others for the Project; to make certain consequential amendments to the Road Management Act 2004 and section 85 of the Constitution Act 1975.
Appendixes 166 National Rail Corporation (Victoria) Act 1991 Road Safety Act 1986 This Act approves and gives effect to an agreement made This Act provides for the registration of motor vehicles, between the Commonwealth and the States of Victoria, New licensing of drivers, offences involving alcohol or other drugs South Wales, Queensland and Western Australia relating to and other provisions regulating the operation and use of the establishment and operation of the National Rail motor vehicles. Corporation Limited. Southern and Eastern Integrated Pollution of Waters by Oil and Noxious Transport Authority Act 2003 Substances Act 1986 The purposes of this Act are to establish SEITA and to facilitate Except for sections 30 and 47, which are jointly the Southern and Eastern Integrated Transport Project. administered with the Minister for Environment, and sections 8, 9, 10, 11, 12, 13, 18, 19, 20, 21, 22, 23, 23B, Transport Act 1983 23E, 23G, 23J, 23K, 23L and 24E, which are administered This Act establishes and sets out the functions and powers of by the Minister for Environment. DOI in relation to transport matters, and those of the Roads This Act provides for the protection of the sea and other Corporation. The Act provides for the licensing of commercial waters from pollution by oil and other noxious substances. vehicles and for various offences. The Act also governs railway and tram safety. Port Services Act 1995 Very Fast Train (Route Investigation) Act 1989 Except for sections 45-57, 59-63 and 119-123 (these provisions are administered by the Minister for Finance). The purpose of this Act is to facilitate the investigation of a route for a very fast train linking Melbourne with other centres Sections 25, 27-29, 96, 99-108, 124-125 and all of Schedule within or outside the State. 1 except clauses 4, 6(1) and (2) (these provisions are administered by the Treasurer). Westernport (Crib Point Terminal) Act 1963 This Act establishes the POMC, POHC, and the VRCA. The This Act assists the development and operation of a Act also provides for charges and licensing for port use. petroleum terminal at Crib Point by providing for certain existing and new easements, and clarifying the status of Public Transport Competition Act 1995 existing agreements relating to the pipeline running from the This Act provides for the accreditation of passenger bus terminal site to Dandenong. operators and implements a system of service contracts for route service operations. Acts administered by the Minister for Major Projects
Rail Corporation Act 1995 Docklands Act 1991 The main purpose of this Act is to establish VicTrack, the This Act establishes the powers and functions of the Spencer Street Station Authority and V/Line Passenger Victorian Urban Development Authority in relation to the Corporation. It also provides a rail access regime, and docklands area. confers certain powers on rail and tram operators. Project Development and Construction Management Road Management Act 2004 Act 1994 The main purpose of the Road Management Act is to Parts 5 (except to the extent that it relates to the exercise of establish a new statutory framework for the management of powers and functions under Part 9A of the Planning and the road network, facilitating the coordination of various uses Environment Act 1987), 5A and 8. of road reserves for roadways, pathways, infrastructure and (The remainder of the Act is administered by the Premier, similar purposes. except Parts 4 and 7 and section 46, which are administered by the Minister for Planning.) This Act facilitates the delivery of infrastructure projects and establishes the Secretary to DOI as a body corporate.
167 DOI Annual Report 2004–05 Victorian Urban Development Authority Act 2003 Gas Safety Act 1997 This Act establishes VicUrban. The Authority takes over the This Act regulates the safety of gas supply and use in functions and powers of the former Urban and Regional Victoria. The Act establishes the OGS as the regulator for Land Corporation and the former Docklands Authority to these purposes. develop land in Victoria. Mines (Aluminium Agreement) Act 1961 Acts administered by the Minister for The purposes of this Act are to ratify, validate, approve and Energy Industries otherwise give effect to an agreement with respect to the establishment in Victoria of industries for the production of Electricity Industry Act 2000 aluminium and manufacture of goods therefrom and to grant This Act regulates the Victorian electricity supply industry. The certain mineral and other rights incidental to establishing and Act requires persons who generate, transmit, distribute, carrying on such industries. supply or sell electricity to obtain a licence from the ESC, or a licence exemption. Key provisions include a consumer safety National Electricity (Victoria) Act 1997 net for domestic and small business customers in the This Act regulated the National Electricity Market (NEM). The transition to effective retail competition. Act was part of a national scheme giving effect to the National Electricity Law. The Act was repealed on 1 July 2005. Electricity Safety Act 1998 This Act regulates the safety of electricity supply and use in National Electricity (Victoria) Act 2005 Victoria, and the efficiency of electrical equipment. The Act This Act regulates the NEM and replaces the National establishes the OCEI as the regulator for these purposes. Electricity (Victoria) Act 1997. The Act is part of a national scheme which gives effect to the National Electricity Law. Fuel Emergency Act 1977 The ‘lead legislation’ is the National Electricity (South This Act sets out ministerial powers to preserve and allocate Australia) Act 1996. fuel supplies during proclaimed fuel emergencies. Nuclear Activities (Prohibitions) Act 1983 Gas Industry Act 2001 This Act prohibits uranium mining in Victoria, and the This Act regulates the Victorian gas industry. The Act requires construction or operation of certain nuclear facilities in persons who distribute or sell gas to obtain a licence from Victoria, including nuclear reactors and nuclear power the ESC, or a licence exemption. The Act continues reactors. The Act also regulates the possession of certain VENCorp, the independent system operator for the Victorian nuclear materials, and assists the Commonwealth in gas wholesale market. Key provisions include a consumer meeting its international nuclear non-proliferation safety net for domestic and small business customers in the objectives. transition to effective retail competition. State Electricity Commission Act 1958 Gas Pipelines Access (Victoria) Act 1998 Section 107. (This Act is otherwise administered by the This Act provides for the regulation of third-party access to Treasurer.) Section 107 preserves the electricity theft and natural gas pipeline systems. The Act is part of a national tampering provision in the Electricity Light and Power Act 1958. scheme which gives effect to the National Third Party Access Code for Natural Gas Pipeline Systems. The ‘lead legislation’ Acts administered by the Minister for Information is the Gas Pipelines Access (South Australia) Act 1997. and Communication Technology There are no Acts currently administered by this Minister.
Appendixes 168 Acts passed during 2004–05
Minister for Transport Mitcham-Frankston Project (Amendment) Act 2005 Road Safety (Further Amendment) Act 2005 Transport Legislation (Amendment) Act 2004 Transport Legislation (Further Amendment) Act 2005.
Minister for Major Projects No Acts passed during 2004–05.
Minister for Energy Industries and Resources Electricity Industry (Wind Energy Development) Act 2004 Energy Legislation (Amendment) Act 2004 Energy Legislation (Miscellaneous Amendments) Act 2005 National Electricity (Victoria) Act 2005.
Minister for Information and Communication Technology No Acts passed during 2004–05.
169 DOI Annual Report 2004–05 Budget Portfolio Outcomes
The Budget Portfolio Outcomes statements provide a comparison of the actual financial results for all entities within the Infrastructure budget portfolio with the forecasts published in Budget Paper No. 3 – 2004–05 Budget Estimates.
The statements are prepared on a consolidated basis. Entities are consolidated within a budget portfolio when 50 per cent or more of their funding is received through appropriations and they are directly accountable through Ministers to Parliament. The entities included in the statements are:
• Department of Infrastructure
• VicRoads
• SEITA.
Financial transactions and balances are classified into either controlled or administered in accordance with AAS 29 Financial Reporting by Government Departments and as agreed with the Treasurer for the purposes of Budget Paper No. 3.
Budget Portfolio Outcomes statements are not prepared on the same basis as DOI’s financial report and are not subject to audit by the Victorian Auditor-General’s Office (VAGO).
Appendixes 170 Budget Portfolio Outcomes Statement of Financial Performance for the year ended 30 June 2005
2004–05 actual 2004–05 budget Variation Notes ($ million) ($ million) ($ million)
Revenue from ordinary activities Output appropriations 2,800.7 2,977.4 (6) 1 Special appropriations 1.1 - - Resources received free of charge or for nominal consideration 4.3 5.0 (15) Sales of goods and services 182.1 129.9 40 2 Commonwealth grants - - - Taxes 55.7 48.1 16 Fines and fees - 2.0 (100) Other revenue and revenue from other parties 171.9 218.0 (21) 3
3,215.8 3,380.4 (5) Expenses from ordinary activities Employee entitlements 238.7 221.3 8 Depreciation and amortisation 305.1 340.0 (10) 4 Resources provided free of charge or for nominal consideration 336.0 - - 5 Grants and other payments 948.4 769.1 23 6 Capital asset charge 59.7 78.5 (24) 4 Supplies and services 1,506.5 1,647.6 (9) 6 Other expenses from ordinary activities 2.6 - - Borrowing costs 5.4 6.5 (17)
3,402.4 3,063.0 11
Result from ordinary activities (186.5) 317.4 (159) 7
Loss from extraordinary items- -
Net result for the reporting period (186.5) 317.4 (159) Net increase in asset revaluation reserve 706.9 - 8 Total revenues, expenses and revaluations recognised directly in equity 706.9 -
Total changes in equity other than those resulting from transactions with Victorian State Government in its capacity as owner 520.4 317.4 64
Expenditure Notes 1 Variation primarily reflects the rescheduling of projects and the 5 2004–05 actual figure includes land and infrastructure assets reclassification of programs from operating to capital activities. transferred to Connect East for the construction of the EastLink project and the transfer of rollingstock assets to VicTrack. 2 Variation primarily reflects higher than expected level of fee for service activity by VicRoads. 6 Variation primarily reflects the change in accounting treatment of lease payments for rollingstock which are now classified as a 3 Variation primarily reflects the write-off of assets not anticipated 'Grant and Other Payment' rather than 'Supplies and Services'. in the State Budget. This has reduced the revenue recorded for 2004–05. 7 Variation primarily reflects the transfer of land and other assets to Connect East and VicTrack and the rescheduling of projects 4 Variation reflects the impact of the transfer of assets out of the to later years. Department, the rescheduling of capital projects and the change in accounting treatment of various information 8 2004–05 actual figure reflects the revaluation of road technology projects. infrastructure assets.
171 DOI Annual Report 2004–05 Statement of Financial Position as at 30 June 2005
2004–05 actual 2004–05 budget variation Notes ($ million) ($ million) ($ million)
Current assets Cash assets 573.8 571.1 - Other financial assets 50.0 50.0 - Receivables 466.9 401.3 16 1 Inventories 3.7 2.6 44 Prepayments 3.1 2.7 17 Other 10.4 4.8 115
Total current assets 1,107.9 1,032.5 7 Non-current assets Receivables 2.2 - - Inventories 0.7 3.3 (79) Other financial assets - - - Property, plant and equipment 17,844.1 17,760.2 - Intangible assets 9.1 7.3 25 Other ---
Total non-current assets 17,856.0 17,770.8 -
Total assets 18,964.0 18,803.3 1 Current liabilities Payables 626.2 576.1 9 Interest bearing liabilities 0.2 - - Provisions 28.3 26.3 8 Other 45.8 11.7 291 2
Total current liabilities 700.6 614.1 14 Non-current liabilities Interest bearing liabilities 16.7 15.7 7 Provisions 56.1 52.7 7 Other 200.9 187.4 7 Amounts owing to other departments - - -
Total non-current liabilities 273.8 255.9 7
Total liabilities 974.4 870.0 12
Net assets 17,989.6 17,933.3 - Equity Contributed capital 14,725.5 14,872.1 (1) Reserves 3,963.4 3,256.5 22 3 Accumulated surplus (699.3) (195.4) 258 4
Total Equity 17,989.6 17,933.3 -
Expenditure Notes 1 Variation reflects funding approved in 2004–05 but yet to be 3 Variation reflects the revaluation of road infrastructure assets. received relating to VicTrack's leasing of rollingstock. 4 Variation primarily reflects the transfer of land and other assets 2 Variation reflects higher than anticipated level of property to Connect East and VicTrack and the rescheduling of projects acquisition activities. to later years.
Appendixes 172 Budget Portfolio Outcomes Statement of Cash Flows for the year ended 30 June 2005
2004–05 actual 2004–05 budget variation Notes ($ million) ($ million) ($ million)
Cash flows from operating activities Receipts from Government 2,733.3 2,977.7 (8) 1 Receipts from other entities 363.2 344.9 5 Payment of supplies, grants and employees (2,672.2) (2,647.0) 1 Interest received 4.4 0.4 1,158 Other revenue 89.3 46.5 92 2 Capital asset charge (59.7) (78.5) (24) 3 Borrowing costs expense (5.4) (6.5) (17)
Net cash inflow from operating activities 452.9 637.5 (29) Cash flows from investing activities Payments for property, plant and equipment (368.6) (614.6) (40) 4 Proceeds from sale of property, plant and equipment 12.9 6.2 107 Payments for investments - - Proceeds from sale of business assets (repayment of) loans by other entities - -
Net cash (outflow) from investing activities (355.7) (608.4) (42) Cash flows from financing activities Net proceeds from capital contribution by State Government 16.1 82.8 (81) 5 Net proceeds of borrowings 1.2 - - Repayment of finance leases - - -
Net cash inflows (outflow) from financing activities 17.3 82.8 (79)
Net increase (decrease) in cash held 114.5 111.9 2 Cash at the beginning of the financial year 459.3 459.3 -
Cash at the end of the financial year 573.8 571.1 -
Expenditure notes 1 Variation primarily reflects the rescheduling of projects and the 4 Variation reflects the change in accounting treatment of various reclassification of programs from operating to capital activities. rail projects which are now classified under the 'Net Proceeds from Capital Contribution by State Government' category, the 2 Variation primarily reflects higher than expected level of public reclassification of road activities from capital to operating and transport activity. the rescheduling of projects across years. 3 Variation reflects the impact of the transfer of assets out of the 5 Variation primarily reflects the change in accounting treatment Department, the rescheduling of capital projects and the of various rail projects previously classified as 'Payments for change in accounting treatment of various information Property, Plant and Equipment' and the reclassification of technology projects. infrastructure works previously treated as an operating activity.
173 DOI Annual Report 2004–05 Administered Items Statement as at 30 June 2005
2004–05 actual 2004–05 budget Variation Notes ($ million) ($ million) ($ million)
Administered revenue Appropriations – Payments made on behalf of the State 9.0 - - 1 Special appropriations - - - Resources received free of charge or for nominal consideration - - - Sale of goods and services 1.0 - - Commonwealth grants 253.1 256.8 (1) Other grants 1.8 - - Taxes 1,415.3 1,348.7 5 Fines 8.3 6.5 27 Fees 15.7 14.2 11 Other 24.5 23.4 4
Total administered revenue 1,728.6 1,649.6 5 Administered expenses Expenses on behalf of the State - - - Grants and other payments 10.8 - - Payments into the Consolidated Fund 1,591.1 1,613.7 (1)
Total administered expenses 1,601.9 1,613.7 (1)
Revenue less expenses 126.7 35.8 254 Administered assets Cash assets 13.9 11.0 26 Receivables 337.1 240.7 40 2 Other financial assets - - - Inventories --- Prepayments --- Property, plant and equipment - - - Intangible assets - - - Other financial assets - - -
Total administered assets 351.0 251.8 39 Administered liabilities Payables 16.0 13.1 22 Interest-bearing liabilities - - - Provisions --- Amounts owing to other departments - - - Other 95.5 89.9 6
Total administered liabilities 111.5 103.1 8
Expenditure notes 1 Variation reflects funding provided for the extension of the Network Tariff Rebate Scheme from 1 April 2005. 2 Primarily reflects the impact of the agreement between Transurban and the State to redeem some of the concession notes held by the State in order to fund the construction of the Tullamarine – Calder interchange facility. This resulted in a revaluation of the concession notes and a revaluation gain in 2004–05.
Appendixes 174 Budget Portfolio Outcomes People Profile
Table 1. People profile as at 30 June 2005 Variation from Variation from Variation from Actual male previous year Actual female previous year Actual total previous year FTE Total
Class SEC 1 +0 1 +0 1.0 EO-1 3 +1 3 +1 3.0 EO-2 21 -2 3 +0 24 -2 23.2 EO-3 22 +2 9 -1 31 +1 30.6 VPS STS 7 +4 1 +1 8 +5 8.0 VPS PS 5 +1 +0 5 +1 5.0 VPS GR6 186 +38 88 +18 274 +56 268.6 VPS GR5 117 +29 81 +8 198 +37 194.7 VPS GR4 62 +9 55 +9 117 +18 115.8 VPS GR3 83 +11 100 +2 183 +13 178.9 VPS GR2 26 -3 76 +10 102 +7 98.9 VPS GR1 2 -3 5 +3 7 +0 7.0
Total staff 535.0 +87 418.0 +50 953.0 +137 934.7
Table 1 represents people on payroll as at 30 June 2005 including people on paid leave (for example maternity leave)
Table 1. People profile as at 30 June 2005 Continuing executives Special projects Class Male no. Var. Female no. Var. Vacancy No Var. Male no. Var. Female no. Var. Vacancy No Var. Inactive Total SEC 1 1 EO-1 3 +1 3 EO-2 21 2 2 2 +1 1 +1 0 -1 1 29 EO-3 21 9 5 -3 3 +2 0 -1 1 +3 4 43
Total 46 +1 11 +0 7 -3 5 +3 1 +0 1 +2 5 76
Table 2 represents DOI Executive envelope including positions currently deemed Inactive
Table 3. Executive positions reconcilliation 2005 2004 Executives with total remuneration over $100,000 50 56 Add Executives employed with total remuneration below $100,000 27 22
Total as per Financial Statements 77 78 Add Vacancies 714 Accountable Officer 11 Inactive 5 Less Separations -14 -19
Total executive numbers at 30 June 2005 76 74
175 DOI Annual Report 2004–05 Statutory Authorities Executive Numbers
For 2004–05, an 'executive' is any person considered a Chief Executive Officer (CEO) or equivalent role and any person who has significant responsibility and receives a total remuneration package of $110,000 or more. Technical specialists who do not have a management function, and people whose employment is regulated by an award or enterprise agreement are not included.
Organisation Reported Department 2005 2004 Change 2005 2004 2005 2004 Female Male Vacant Female Male Vacant Female Male Vacant OGS Yes Yes DOI DOI 1 1 OCEI Yes Yes DOI DOI 5 4 1 1 -1 POMC (1) Yes Yes DOI DOI 1 17 1 1 10 1 7 POHC Yes No DOI 1 1 SEITA YesYesDOIDOI16225 -112 Spencer Street Station Authority Yes Yes DOI DOI 1 1 -1 1 TTA Yes Yes DOI DOI 1 4 1 4 V/Line Passenger Corp. (V/Line Passenger Pty Ltd) (2) Yes Yes DOI DOI 7 12 6 10 1 2 VicRoads Yes Yes DOI DOI 12 54 2 12 55 -1 2 VenCorp Yes Yes DOI DOI 1 11 12 1 -1 VicTrack Yes Yes DOI DOI 1 5 1 1 4 1 1 VRCA Yes Yes DOI DOI 3 2 1 1 -1 VicUrban Yes Yes DOI DOI 1 8 1 8 Total 25 128 6 25 115 3 0 13 3
Grand total 153 140 13
(1) Increases due to:- - CEO appointment - the start of major projects affecting the Port region has meant senior executives have been appointed. (2) 2004 figures restated to reflect V/Line Annual Report disclosure.
Appendixes 176 Employee Relations
DOI has continued to build a strong employee relations Managing and valuing diversity framework through the development of consultative DOI’s core organisational values include valuing people’s mechanisms. No time was lost in 2004–05 through industrial diversity and respecting each other’s diverse knowledge, disputes. skills and abilities. Implementation of the Diversity Plan 2004–06 continued during 2004–05, with a focus on Occupational Health and Safety reporting developing a Disability Action Plan and building relationships DOI is committed to proactive management of individual and with indigenous communities. The Diversity Plan aims to organisational health and wellbeing and ensuring that improve the performance of the organisation based on the exposure to risks is minimised. principle that managed diversity encourages innovation and provides a work environment in which everyone can achieve DOI has a wide range of occupational health and safety his or her full potential. (OH&S) policies and procedures in place, underpinning its commitment to OH&S. In anticipation of the Occupational Health & Safety Act 2004, an Occupational Health and Safety Employee health and work/life balance Committee comprising employee representatives was DOI’s People Strategy also includes an Employee Health Plan established to guide future OH&S initiatives. 2004-06 which contains the following actions, implementation of which began during 2004–05: Organisational health initiatives provided to DOI people, such as influenza vaccinations, individual health assessments and • an employee health and fitness program; ergonomic assessments, have targeted specific issues in the • actions in VPS Agreement 2004 under Part 9 DOI office environment, reducing risks of injury, illness and Occupational Health and Safety; and WorkCover claims. • an information campaign about the importance of OH&S. Regular hazard audits of DOI workplaces were conducted over the year to ensure DOI people are not being exposed to unnecessary risks in the office. School holiday program
A total of seven WorkCover claims were accepted for 2004–05. DOI runs a work-based school holiday program for its people The majority of these were minor claims and, through an active during Christmas and term holidays, and subsidises the cost return to work strategy, claims costs have been reduced and of the program for participants. injured workers returned to work. This has resulted in a reduction in DOI’s WorkCover insurance premium for 2005–06. Flexible work arrangements The Human Resources Management (HRM) Branch continues DOI has committed itself to the consideration of flexible to work with line areas to facilitate early return to work for all working arrangements, including working from home. people sustaining an injury in the workplace. Assistance is provided to DOI people and managers by the DOI’s Employee Assistance Program has been used by HRM Branch in establishing working from home and other DOI people over the year and is considered an effective early flexible working arrangements. intervention strategy that has contributed to reducing stress claims and addressing other workplace issues. Staff Consultative Committee The Staff Consultative Committee continued to be a forum for Selecting on merit encouraging and promoting workplace relations based on DOI’s Anti-discrimination Policy and Guidelines ensure that communication and cooperation. all employment decisions are based on merit. Merit and The Committee will continue to operate as a sounding equity principles are enshrined in DOI’s Recruitment Policy board for future workplace initiatives and their impact on and Guidelines. DOI people.
177 DOI Annual Report 2004–05 Freedom of Information
Reviewing personal grievances The Freedom of Information Act 1982 gives the public a right DOI’s Grievance Policy ensures that people have an avenue of access to documents held by government departments. for redress against treatment they see as unfair or For the period 2004–05, DOI received 334 applications. unreasonable. The HRM Branch continues to work Of these requests, 97 were from Members of Parliament, proactively across DOI to resolve workplace issues as they 33 from the media and the balance were from the general arise and without the need for formal grievance. public. Of the total requests received by DOI, 26 went to Internal Review, with five progressing to the appeal stage at Upholding public conduct the Victorian Civil and Administrative Tribunal (VCAT). DOI’s Ethics at Work and Managing Diversity policies and the Access to documents (as defined in section 5 of the Act) Public Sector Code of Conduct are integral to the way DOI may only be obtained through written request as detailed in people conduct business. section 17 of the Freedom of Information Act 1982, addressed to:
People management practices Freedom of Information Manager All DOI human resource management policies have been Department of Infrastructure updated and are available online to all DOI employees and GPO Box 2797 new starters as part of the induction process. The HRM Melbourne, Victoria 3001 Branch provides advice and consults with all line areas to Telephone: (03) 9655 6380 ensure policies are adhered to and taken into account. Email: [email protected]
Performance management and development The DOI performance management and development system is integrated with the Victorian Public Service career structure. The system is an essential tool, used at all levels to improve organisational performance by linking and aligning individual, team and organisational outcomes. The system identifies the need to increase capability, which has placed an even greater emphasis on performance management and development.
Appendixes 178 DOI’s Audit Committee
The Audit Committee was established to advise the Secretary As at 30 June 2005, members of the Committee were: on all matters relating to audit, assurance, financial reporting Peter Lewinsky (Chair), Ian Gaudion, John Rogan, and risk management. It is supported in this task by a Richard Yates (appointed April 2005) and Bob McDonald. secretariat, made up of the Director-Audit and Assurance, Mr Lewinsky, Mr Gaudion and Mr Yates are independent who reports to the Secretary, and through an outsourced members; Mr McDonald and Mr Rogan are departmental internal audit. members.
The main functions of the Committee are to assist in DOI’s audit services are provided by Ernst and Young fulfilling DOI’s governance responsibilities. These are (appointed at the end of calendar year 2004). specified under the Victorian Government’s Financial Management Compliance Framework and guidelines for whole-of-Victorian-Government best practice. National Competition Policy DOI’s Audit Charter includes: DOI has complied with the requirements of National • actively overseeing the internal audit function and Competition Policy and is continuing to report to DTF as program, approving and amending DOI’s annual or required regarding implementation. strategic audit plans, facilitating the independence of the internal audit function, the responsiveness of management to audit findings and the performance of the outsourced service providers Disclosure of Major • identifying and disseminating good practices Contracts Compliance throughout DOI in relation to assurance, governance, risk management, financial management and ethics DOI has disclosed all contracts greater than $10 million in value which it entered into in 2004–05. • reviewing any unusual or significant transactions or policies that the Committee considers warrant review The disclosed contracts can be viewed at www.tenders.vic.gov.au/contracts • advising the Secretary on any significant changes to DOI’s accounting or procurement policies that are proposed by DOI or considered desirable by the Committee
• advising the Secretary on the preparation and review of DOI’s financial statements
• coordinating internal audit programs and the audit programs conducted by the VAGO involving DOI, and advising the Secretary on action to be taken on matters of concern raised in any report of an internal auditor or in a report about DOI by VAGO
• maintaining a watching brief over and periodically reviewing DOI’s risk management activities, including the risk management framework and the implementation of risk management principles and practices within DOI.
179 DOI Annual Report 2004–05 Consultancies
The following table lists the consultants engaged in 2004–05 where the cost of the engagement was $100,000 or greater.
Total approved Expenditure Future Consultants Project project fee ($) 2004–05 ($) expenditure ($) Ove Arup Pty Ltd The Review of Critical Transport Infrastructure 363,238 211,124 149,710 1 Monash University Accident Research Centre Marine Safety Research Strategy 253,000 0 253,000 Dedale Asia Pacific Pty Ltd Applied Human Factors Training for rail operations 245,850 29,700 122,925 2 David McKinna et al Pty Ltd Export Market Impact Study for the Nowingi EES 230,000 0 44,500 Dandolo Partners Pty Ltd Growing the ICT industry through collaboration with strategic Victorian industry sectors 153,459 153,459 0 Pacific Road Corporate Finance Financial assessment of Hazelwood Power Station 135,404 135,404 0 Gibson Quai Pty Ltd Gas Pipeline Fibre Review 132,000 90,200 41,800
In addition, a further 24 consultancies where the total fee payable to the consultant was less than $100,000 were engaged during the financial year at a total cost of $1,146,408.
1 Of the future expenditure amount, $40,500 will be funded by VicRoads. 2 This is a joint project with the Independent Transport Safety & Reliability Regulator in NSW.
Appendixes 180 Whole-of-government reporting framework: Multicultural Affairs
Background Key strategies and initiatives
The Government’s multicultural policy – Valuing Cultural Human resources Diversity – outlines the foundations for supporting Victoria’s DOI is committed to respecting cultural diversity in the diverse community and promoting a socially cohesive workplace, and in all its dealings with stakeholders and the society through: community. DOI has in place a range of Human Resources policies, guidelines and strategies to foster and support Valuing diversity diversity in the workplace, including the Policy for Managing • Fostering a community which recognises the values and and Valuing Diversity, Policy and Guidelines for the benefits of a culturally rich and diverse society. Prevention of Discrimination, and Policy and Guidelines for Racial and Religious Tolerance. • Actively promoting respect and harmony and discouraging racism and negative stereotypes. In addition to the policies and guidelines outlined above, DOI continues to implement a range of initiatives to support and Reducing inequality foster a culturally diverse workplace. • Recognising the right of persons of diverse national, These include: ethnic, religious and linguistic backgrounds to practise, enjoy and share their own culture. • reviewing grievance and anecdotal performance management issues to ascertain issues perceived as • Having in place systems and procedures that will enable arising from intolerance of difference all Victorians access to government services and programs free from undue impediment. • analysis of issues taken by individuals to tribunals such as VCAT, the Australian Industrial Relations Tribunal and • Ensuring government policies and strategies are the Human Rights and Equal Opportunity Commission responsive to all Victorians. relating to intolerance of difference
Encouraging participation • reviewing recruitment policy and practice, to ensure DOI is capturing the broadest possible group of potential • Encouraging an inclusive society that provides employees. opportunities for all people to fully participate in public and civic life. DOI provides its staff with a Leadership and Management training program, which includes a diversity component that • Using appropriate media and promotional channels as a highlights the benefits and values of a rich and diverse means to ensure government information reaches all working community. Victorians. VicRoads has policies and guidelines on Equal Employment • Identifying and addressing any barriers to full participation. Opportunity (EEO), harassment and investigation of Promoting the social, cultural and economic benefits of misconduct by employees, which discourage racism and cultural diversity for all Victorians. promote tolerance and harmony. Training programs are provided to reinforce non-discriminatory behaviour. One aim • Promoting the benefits of a culturally and linguistically is to employ a wide range of people to provide registration diverse society and the social, cultural and economic and licensing services to the public. This promotes harmony opportunities this provides to advance the wellbeing of all and helps to provide better services to people with English Victorians. as a second language. • Promoting to the Victorian community the benefits gained from cultural and linguistic diversity. Outcomes and performance
Below is a summary of the activities undertaken by DOI to • A review of all recruitment policies and procedures support Victorians from non-English-speaking backgrounds, resulted in the development and launch of The Good in line with the Government’s multicultural policy. Recruitment Guide, which highlights inclusive and equitable practices.
181 DOI Annual Report 2004–05 • In the 2004–05 graduate intake, an estimated 36 per cent VicRoads’ Call Centre provides telephone services in of graduates employed by VicRoads were from culturally languages other than English through the use of the diverse backgrounds. This assessment is based on Victorian Interpreter and Translating Service as required. information provided voluntarily by graduates after they began employment, including details of birthplace, Metlink customer information language spoken at home and ancestry. Metlink is responsible for the provision of public transport • The Diversity Plan, which is part of the DOI People customer information services. It offers a telephone translation Strategy 2004–06, includes a performance requirement service for public transport enquiries in 10 languages other for managers to introduce initiatives into the workplace than English, including: Arabic, Chinese, Croatian, Greek, that celebrate and increase diversity. DOI delivers Italian, Macedonian, Somali, Spanish, Turkish and Vietnamese. diversity and cultural awareness programs for staff, The telephone number is published on all brochures. and provides information sessions and training to In addition, Metlink publishes three key public transport assist staff and managers to prevent bullying or brochures in these 10 languages: Fares and Travel Guide, harassment in the workplace. Travelling with a Concession Metcard and Travelling with • DOI continues to collect data about internal complaints Metcards: Your Rights and Responsibilities. relating to alleged discrimination and all grievances, and reports its findings to the Office of Public Customer service charters Employment (OPE). The public transport franchise operators’ Customer Service Charters detail their commitment to passengers travelling on public transport services. Connex's and Yarra Trams' new Customer service and information customer service charters, which came into effect on 1 June DOI and its agencies, including VicRoads, provide multilingual 2005, provide train and tram passengers with improved and translator services on all substantial public information compensation arrangements for cancelled services in the documents and during major public consultation and education form of complimentary tickets and fare discounts, and processes where the target audience is of a culturally diverse undertake to respond to complaints within seven days. nature. Training is also provided, and systems put in place, to enable customer service staff to address the needs of people The new customer service charters are avialable on request from non-English-speaking backgrounds. in 14 languages (Arabic, Croatian, French, Greek, Italian, Japanese, Macedonian, Maltese, Mandarin, Polish, Serbian, Customer service centres Spanish, Turkish and Vietnamese) and in large font, Braille and audio versions to cater for people with special needs. VicRoads employs a diverse range of people to provide registration and licensing services at Customer Service Tram 109 communication Centres. Staff recruitment may be targeted to specific cultural groups to ensure provision of services that respond to the All Tram 109 project communications material, including needs of a culturally and linguistically diverse community. brochures, advertising and the web site, include four multilingual information line contact numbers representative A program was implemented to assist Arabic, Chinese and of the demographic along tram Route 109, namely Korean communities in VicRoads metropolitan south-east Vietnamese, Cantonese, Italian and Greek. Region to complete transactions and understand all the relevant details despite language barriers. It included The Tram 109 project information line has recorded project posters, leaflets and language boards. information. The caller can select a particular prompt from the recorded message which diverts the caller to the Telephone services in languages other than English VicRoads Call Centre, allowing them to engage in a three- way conversation with the use of an interpreter. The Multilingual Information Line (MIL) is a telephone service established by DOI as a vehicle to reach its multicultural audience. The MIL allows information relating to DOI projects to be recorded and accessed in 13 languages – Arabic, Cantonese, Croatian, Greek, Italian, Macedonian, Polish, Russian, Serbian, Spanish, Turkish, Vietnamese and English.
Appendixes 182 Whole-of-government reporting framework: Multicultural Affairs Flinders Street Overpass Project • Provided a comprehensively translated outline of all DOI The Flinders Street Overpass Project has provisions for an services in a community document, Guide to Victorian interpreting service. People who call the Call Centre can Government Services. request to speak to an interpreter and engage in a three-way • During 2004–05, Metlink received 82 calls to its conversation. interpreter service and 82 telephone requests for brochures in other languages. Learner permit and probationary driver licence tests • The number of people using the interpreter-assisted VicRoads provides Learner Permit and Probationary driver driver licence test service decreased, with 3,735 licence tests in 20 languages other than English. Statistics multilingual tests undertaken in 2004–05 compared to are kept for all language and interpreter assisted tests and 4,056 undertaken in 2003–04. these statistics are regularly reviewed. • VicRoads completed an analysis of pass rates for foreign Boat operator licence tests in languages other language tests for driver licences, learner permits and than English boat operator licences undertaken between September VicRoads provides recreational boat operator licence tests in 2003 and June 2004. This enabled VicRoads to more eight languages other than English. These tests are carried effectively determine which foreign-language tests should out on behalf of MSV. be delivered via an interpreter and which should be delivered via a hard copy translation. Approximately 100 boat operator licence tests were conducted in languages other than English during 2004–05. This is a decrease in the amount of tests compared with Participation, Education and Recognition previous years. However, it is consistent with the overall TravelSmart Communities Program drop in boat operator licences issued this year. This overall In 2005, TravelSmart delivered a large-scale travel behaviour decrease is due to the high initial take-up rates when change project to approximately 45,000 households from mandatory licensing was introduced a few years ago, but across the City of Maribyrnong and City of Moonee Valley. is consistent with the normal annual growth of licensed This travel behaviour change initiative aims to encourage operators. residents to choose walking, cycling and public transport MSV distributed approximately 150 Victorian Recreational for more of their travel. Boating Safety Handbooks in eight languages other than The City of Maribyrnong is one of Australia’s most diverse English, with the main language requests being for Italian, communities. More than 80 languages are spoken within the Chinese and Greek. municipality and many new migrants live in the area. The Outcomes and performance existing TravelSmart methodology was augmented to help ensure those who speak languages other than English had • The MIL subscription service provided translations for a increased opportunity to participate in the program. range of DOI projects and programs, including: Augmentations included the provision of material in – TravelSmart languages other than English, use of interpreters and multilingual phone and door-knock staff, and culturally and – RFR linguistically diverse (CALD) community forums about – Knox Transit Link TravelSmart.
– Cragieburn Rail Program Novice Driver Kits – Companion Card VicRoads provides the Novice Driver Kit, which contains the – Spencer Street Station Redevelopment Road to Solo Driving and Getting There From Ls to Ps handbooks. The kit is available in 12 languages. – MTP
– Boat Operator Licensing.
183 DOI Annual Report 2004–05 Registration and licensing education Victorian driver licence VicRoads conducted forums and information nights and In line with other Australian States and Territories, VicRoads delivered presentations across Victoria to assist local CALD recognises 22 other countries with similar licence-testing communities learn about obtaining a driver licence and requirements for the purposes of gaining a Victorian Driver vehicle registration requirements. For example, a program of licence. information sessions was held at local libraries in the City of Monash, which the local council would like to continue. Community consultation
VicRoads also provides annual assistance to Indonesian VicRoads’ Major Projects Division identifies languages other consulate staff with driver licence and registration than English that are spoken in each of its project areas. requirements and presents driver licensing information twice If the percentage of people that speak the language is a year to new international students at Monash University significant, a translation in these languages is added to project brochures to encourage these community members Ethnic safety awareness campaign to call the interpreter service. The community member can speak to a member of the project staff via the interpreter and VicRoads’ Ethnic Child Restraint Campaign uses ethnic radio the brochure can be translated into the appropriate language. stations to promote the use of child restraints. During 2004–05, a campaign was conducted for the Chinese Connecting Victoria Strategy community in VicRoads metropolitan south east region, which included distribution of posters to Maternal and Child The ICT strategy, Connecting Victoria, commits the Government Health centres, child-care centres and local councils and to ensuring that all Victorians are able to enjoy the benefits of presentations to early child-care groups. online technology. Implemented by MMV as part of this strategy, Connecting Communities is the Government’s VicRoads translated the Starting Out Safely early childhood framework for using technology to create and strengthen road safety education program parent/carer materials and communities. Connecting Communities specifically targets provided support for agencies working with families in CALD technologically disadvantaged members of the community, communities. Materials were produced, promoted and including people from non-English-speaking backgrounds. disseminated in five languages. Connecting Communities: the second wave (launched in Informing international students December 2004) and the My Connected Community program assist communities establish an online presence, VicRoads delivers an annual presentation about Victorian particularly those communities who have not done so, by licensing requirements to large groups of multicultural providing online tools and support to create online groups to students from Australian Multicultural Education Services use technology to communicate with similar groups to share (AMES). Issues that are covered include: ideas, knowledge and information. • driving in Victoria Of the 1,505 online groups funded under the Connecting • getting a learners permit Communities policy framework, a total of 20 per cent included people from cultural and linguistically diverse communities. • driving on an overseas licence A total of 22 organisations that were funded in 2004–05 are in • learning to drive the process of establishing online groups. Out of these • making an appointment for a test. organisations:
Students from a diverse range of backgrounds are involved. • 15 have undertaken to focus on establishing online Six different interpreters relay the information to the students groups that include seniors from a non-English-speaking during the presentation. background within their overall target
• four have undertaken to focus on establishing online groups that include recent migrants within their overall target.
Appendixes 184 Whole-of-government reporting framework: Multicultural Affairs Outcomes and performance • A novice driver education program was implemented, • Key project materials from the TravelSmart program were through local government, a migrant resource centre, provided in languages other than English. Through police and Roadsafe committees, teaching the Sudanese encouragement of TravelSmart, other agencies (for community in Greater Dandenong about road safety example council, RACV) also translated materials into messages and licensing. languages other than English. Contractors were required • The Older Driver Handbook has been summarised and to employ multilingual telephone and doorknock staff to converted into six community languages to reach non- meet the language needs of the community. English speaking groups.
• Multilingual information services were provided in Arabic, • A heavy vehicle education and special assistance Bosnian, Cantonese, Croatian, German, Greek, Italian, program was provided to Iraqi men in the Shepparton Japanese, Macedonian, Manderin, Polish, Russian, area to enhance their employment opportunities or their Serbian, Spanish, Turkish, Vietnamese, Urdu. ability to start their own businesses. • Posters and flyers promoting the TravelSmart program were translated, placed at known CALD community information points (for example, Community halls, AMES) and distributed through established CALD networks.
• During 2004–05 VicRoads provided:
– forums for the Tongan community in Murchison, in partnership with Victoria Police
– presentations focusing on licensing information and requirements to the Sudanese community in the Dandenong area
– information and learner permit testing for young Japanese community members in the Oakleigh area, as part of the Australian/Japanese Society’s Learn English for employment in the hospitality industry program
– information nights for the Samoan Community in VicRoads metropolitan north west region.
• A study was conducted with 10 ethnic groups to ascertain their understanding and acceptance of child restraint publicity printed in non-English languages. It included Somali, Greek, Italian, Macedonian, Serbian, Arabic, Croatian, Vietnamese, Mandarin and Turkish communities.
• Education material for the Starting Out Safely education campaign for parents of 0–5 year olds has been produced in five languages. Approximately 200 early childhood education centres ordered child/parent materials, and around 25 municipalities and child care centres ordered parent materials.
185 DOI Annual Report 2004–05 Whole-of-government reporting framework: Women
Background Key strategies and initiatives
Gaining ground for Victoria’s Women is the Government’s Human resources policy for improving the position of women in the Victorian community. The policy’s key elements are: DOI People Strategy 2004–06 The DOI People Strategy 2004–06 was developed during Representation and equity 2003–04 and implemented during 2004–05. The People • Ensure women are well-represented in leadership and Strategy is based on feedback from DOI staff and will decision-making. endeavour to improve job satisfaction across DOI by addressing three key areas:
Education, work and economic independence • building capability • Support employers and employees to better balance • motivating people to achieve work and family commitments and increase women's participation in the workforce. • better people management.
• Ensure women are provided with choices in education An important element is the Diversity Plan, which includes a and training that take account of the diversity of women. Plan for Women within DOI.
Health, wellbeing and community strengthening Developing DOI women • Improve the health and wellbeing of Victorian women. As part of the People Strategy 2004–06 a Manager Development Program specific to DOI’s needs has been Justice and safety implemented. An important part of this involves managers • Reduce the fear of violence for women. nominating women with potential to attend this course.
The information below outlines the main initiatives undertaken The coaching panel was reviewed to ensure that coaches are by DOI during 2004–05 in relation to supporting women. able to work effectively with women and understand the DOI environment, work environment and the broader government environment. The coaching service is being promoted to women at Executive Officer and VPS GR6 level. Each Executive Director (ED) nominates a set number of women for this program each quarter.
The DOI mentoring program has been reviewed and refreshed to create more interest and to better communicate its benefits. The Secretary and EDs will each mentor two people, at least one of whom will be a woman.
During 2004–05, the Human Resources Management Branch monitored that suitable female applicants from DOI were encouraged to apply for positions and that the applicant field included 50 per cent of women for 75 per cent of all positions.
Recruiting Women to DOI DOI’s executive search criteria have been improved to ensure that all executive search companies engaged by DOI include female candidates.
All job advertisements and selection criteria have been improved to attract women and prevent indirect discrimination.
Appendixes 186 Whole-of-government reporting framework: Women DOI-specific Graduate Recruitment Schemes are being Customer service and information developed for women in science, engineering and technology (SET) and construction project management. In Publications addition to the graduate recruitment scheme (GRS) run The How to Travel Safely with Prams and Toddlers brochure, centrally by the DPC for generalists, DOI is also developing developed by Connex in partnership with the Royal its own GRS for technical graduates in SET and construction. Women's Hospital as part of a wider safety campaign, aims The aim is for DOI’s GRS to recruit 50 per cent female to educate adults about travelling safely on trains with graduates in each intake and for it to be linked to DOI’s prams and toddlers. It was inserted in the June 2005 issue proposed scholarship and tertiary mentoring programs. of the popular parenting publication Melbourne's Child, which has a distribution of 123,000 in and around Management scholarship Melbourne. The brochure will be supported by press There are still relatively few women in senior management advertisements to be run intermittently throughout 2005–06 roles in the public and private sectors of the freight, in MX (a free evening newspaper distributed at railway logistics and marine industries. More women are now stations within Melbourne’s CBD). choosing tertiary courses relevant to these industries; however, there remains a traditional focus on recruiting Forward priorities and training men for senior roles.
The most recent Australian Bureau of Statistics (ABS) Labour Management scholarships Force Survey (2003) indicates the relative share of DOI is extending its current scheme of freight, logistics and employment for males and females in senior freight, logistics marine scholarships for women to cover women in SET and and marine positions is: construction project management.
• supply and distribution managers – males 93.5 per cent Women are under-represented in the SET and construction and females 6.5 per cent fields. Three scholarships have been proposed by DOI to • transport company managers – males 87.8 per cent support women currently working in, or aspiring to work and females 12.2 per cent within these fields. Having consulted with the Higher Education sector, DOI has been advised to promote these • marine specialists – males 98.3 per cent and females scholarships in Sept./Oct. 2005, in order that the 1.7 per cent. scholarships coordinate with the academic year.
In order to maintain and develop these industries in the A partnership has been formed at RMIT, the University of future, it is important to attract a wide field of professional, Melbourne, Monash and Swinburne Universities. The educated people, both men and women. universities will assist in the promotion and marketing of the In 2004–05, DOI continued its support for the annual Women scholarships. in Freight, Logistics and Marine Management Scholarship, which is awarded to a female, full-time or part-time student, beginning or completing a masters or postgraduate degree in the freight, logistics and marine fields. The scholarship, valued at $10,000, was established in 2001 to encourage women to prepare themselves for management positions within the freight, logistics and marine industries.
The scholarship is awarded on the basis of relevant work experience, academic merit, level of commitment to a career in freight, logistics and marine and demonstrated leadership and management skills or potential. The selection process involves a written application and an interview. Recipients are also given the opportunity to participate in part-time work at DOI during the year.
187 DOI Annual Report 2004–05 Whole-of-government reporting framework: Youth
Background A Transport Careers Expo in Central Victoria was held at VicRoads Bendigo Office. It aimed to encourage more young people to consider a career in the transport industry. There Major aims of the Government’s youth policy – Respect: The were 20 potential trainees identified and interviewed, of Government's Vision for Young People are: which eight entered traineeship programs.
Involvement Safety and access – public transport • To expand opportunities for young people's real and active participation in their communities. Concession fares
Learning and work Concession fares for travel on public transport are available to children under the age of 15 and to students in • To develop sustainable pathways in education and possession of a Primary/Secondary or Tertiary Student employment. Concession Card.
Support Primary/Secondary student cardholders are entitled to • To support positive health and wellbeing outcomes. purchase heavily discounted half-yearly or yearly student passes for travel on the metropolitan public transport network Celebrate and major country bus networks. Date-to-Date tickets for travel on the V/Line country network are also available to • To celebrate and promote young people's involvement in holders of the Primary/Secondary Concession Card. The decision-making and community building. Tertiary Concession Card entitles students attending tertiary The information below outlines the main activities under way institutions to purchase concession tickets. in DOI to support Victoria’s young people. Tram superstop Key strategies and initiatives A new accessible tram ‘superstop’ was opened on 15 February 2005 in Swanston Street at the University Human resources of Melbourne.
DOI Youth Employment Scheme SmartBus Program DOI has in place a robust and successful Youth Employment SmartBus offers more frequent, cross-town bus services and Scheme (YES), which provided traineeships to 42 young extended services at night, on weekends and on public people in 2004–05. holidays. The SmartBus program includes upgraded bus stops, new low-floor buses and timetable improvements, with Youth employment at VicRoads better connections to tram and train services. SmartBus uses VicRoads employed 60 new graduates at the end of the 2004 technology to provide real-time passenger information at key academic year as part of its graduate development program. bus stops, and traffic-light priority to increase punctuality. Graduates undertake three six-month learning and SmartBus services have been operating along Blackburn and development rotations in different parts of the organisation Springvale Roads. A new SmartBus service was introduced before taking up established positions. in June 2005 running from Mordialloc to Box Hill, linking The program has been running for 10 years and VicRoads railway stations, shopping centres and community facilities, has retained 71 per cent of all graduates accepted into the including Box Hill Institute of TAFE (Box Hill Campus), program. Holmesglen Institute of TAFE, Kilbreda College, Mentone, Mordialloc and Surrey Hills Primary Schools and Sacred VicRoads also participates in DOI’s YES, hosting 36 young Heart Catholic Girls' School. people through the scheme in 2004–05. VicRoads was recognised for supporting YES over a period of 10 years, Further extensions of the program are planned along providing placements for more than 250 trainees. Wellington Road from Rowville to Caulfield, connecting with Monash University; and an outer eastern route linking Frankston, Dandenong and Ringwood.
Appendixes 188 Whole-of-government reporting framework: Youth Nightrider • Satisfaction with personal safety for metropolitan and NightRider bus services are provided on Friday and Saturday non-metropolitan public transport remained stable from nights to provide late-night public transport from the CBD to 2003–04 to 2004–05 for this age group, at ‘somewhat Bayswater, Belgrave Craigieburn, Croydon, Dandenong, satisfied’ for safety on metropolitan services and Eltham, Epping, Frankston, Melton, Mornington, Rosebud, between ‘somewhat satisfied’ and ‘very satisfied’ for Rowville, St Albans, Sunbury and Werribee. V/Line safety. • Approximately 70,000 passengers are using the Regional and rural public transport NightRider bus services each year. Rural and regional public transport services specifically targeted to youth include: Safety and access – roads • a bus route to collect students from outlying areas to Young driver road safety and licensing arrangements attend Vocational Education Training (VET) classes in Horsham VicRoads supports local community youth-based road safety programs that work to reduce the risk to novice drivers, • a police presence at the taxi rank outside Myer Ballarat to based on international and national evidence about which ensure the safety of young people catching taxis late at measures are effective in reducing crashes and other night safety incidents involving this group of road users. • volunteers in Golden Plains Shire (Grampians Region) Activities include: driving minibuses to take young people to one-off events • developing and distributing the Enhancing the Safety of such as National Youth Week Young Drivers resource for local communities • a Grampians Pyrenees Regional Development Board • supporting local community programs such as Fit to transport pilot involves young people accessing spare Drive, Looking after our mates and others seats on school buses to travel for employment and training • providing resource materials to Saferoads groups which run 11 community-based road safety programs • a Sundays-only Morwell to Churchill (Monash Uni involving youth. Gippsland Campus) bus service enabling university students who arrive in Morwell on the Sunday evening Youth driver practice V/Line service to travel to the Churchill campus. The VicRoads provides extensive and comprehensive support service runs during university semesters only programs to increase low-risk supervised learner driving • a weekday morning and evening Heathcote to Bendigo practice, including Keys Please sessions, the Getting There bus service mainly for TAFE and university students. From Ls to Ps guide, and The L Site interactive web site.
Outcomes and performance Outcomes and performance • The price of the public transport Tertiary Concession card • VicRoads used quantitative performance measures to was significantly reduced in 2005, from $87 a year to $8 a assess the reach of the Keys Please program into year from 1 January 2005, enabling 39,000 tertiary students Victorian secondary schools. An improved program to access cheaper concession fares each year, at a cost to was implemented throughout Victoria, and the Government of $15 million over four years. approximately 20 per cent of the pre and new learners (aged 15–16) target group attended Keys Please • The Government provided free schoolbus travel for evening sessions. students who travelled more than 4.8 km to their nearest school. During 2004–05, 1,575 services were provided at • Approximately 60–70 per cent of new learner drivers a cost of more than $140 million a year. receive Getting There from Ls to Ps, and there are around 30,000 online visitors to The L Site annually. • Customer Satisfaction Index (CSI) scores for the 16 to 25 year age group, showed that metropolitan services overall continued to rate between ‘somewhat satisfied’ and ‘very satisfied’, while V/Line rated ‘very satisfied’ overall.
189 DOI Annual Report 2004–05 Education and participation Out of 22 organisations funded in 2004–05 to receive My Connected Community funding, nine organisations Community consultation will focus on establishing online groups that include VicRoads hosts Regional Reference Groups that include unemployed Victorians and those outside the education youth representatives to ensure their input into discussion system and workforce (including disadvantaged youth) around issues surrounding roads, transport, safety, within their overall target. registration and licensing etc. PIAP is an initiative of Connecting Communities: the second wave policy framework. The objective of PIAP is to ensure that Craigieburn Bypass – school liaison program community-based free or affordable public internet access The school liaison program was implemented in 2004–05. It continues to be provided to disadvantaged Victorians who conveys the social benefits of the Craigieburn Bypass, raises would not otherwise have such access. PIAP target groups community awareness and encourages students to consider include employed Victorians and those outside the education career paths in construction or engineering. system and workforce (including disadvantaged youth).
Tram 109 project – Student presentations TravelSmart Education Program VicRoads, Tram 109 Project team conducted a number of This travel demand management initiative incorporates presentations to students at schools in the vicinity of tram TravelSmart Schools (targeting primary and secondary Route 109. The purpose of these presentations was to: school students) and TravelSmart Universities (targeting • provide students with an overview of the project aim first-year university students). It aims to increase the number and issues currently associated with the route of students using alternative modes of travel, such as walking, cycling or public transport, to get to school or • outline how this project fits in with the Government’s university rather than using private cars. Linking Victoria strategy which aims to increase public transport use TravelSmart Schools involves developing travel plans and providing learning information that supports school curriculum • present preliminary design options and tram stop (for example, understanding the environmental effects of the locations being considered for tram route 109 travel choices we make each day). It encourages students to (particularly those near their school) become involved in the planning process. In secondary • provide them with an opportunity to give feedback on schools, student representative councils are typically involved these preliminary design options and stop locations in developing and implementing travel plans for their school. being considered, either at the presentation or by DOI reviews and approves school travel plans and provides completing a feedback form and returning it to VicRoads. funding to assist schools in their implementation.
Travel plan activities may include supporting bicycle Connecting Victoria Strategy maintenance workshops at local bike shops and The Victorian Government’s Information and Communication establishing walking and cycling clubs, as well as public Strategy Connecting Victoria commits the Government to transport programs. ensuring that all Victorians, including disadvantaged groups, TravelSmart Universities offers newly enrolled students are able to access the benefits of online technology. Within information about their travel choices and links them to this strategy, the My Connecting Community framework support areas within their university and the local community. provides a basis for using technology to create and strengthen communities. It specifically targets technologically disadvantaged members of the community, including young people.
Appendixes 190 Whole-of-government reporting framework: Youth Outcomes and performance Forward priorities • The success of the TravelSmart Education Program is determined by the level of participation among target Learner driver awareness schools and university students, the successful VicRoads is developing strategies to increase the reach of establishment of travel plans and the degree of change the successful Keys Please program. Young people will be in travel choices and behaviour pre and post- involved in trialling a new communication strategy implementation of the Program. (survey/focus group testing) in order to achieve improved attendance at Keys Please sessions. – Congested precinct pilot. Students in 10 schools (12 campuses) in Essendon/Moonee Valley and Young driver safety review Kew/Hawthorn have completed surveys and participated in focus group interviews to develop Victoria will participate in a national trial and evaluation of an school travel plans. The outcomes of the surveys and educative/training approach involving young Victorian drivers. focus groups will be instrumental in developing In addition, young driver programs tailored for local implementation plans aimed at making it easier to circumstances will be piloted with five municipalities. reduce reliance on private car trips for travelling to and from school and increase walking, cycling and Youth public transport forum public transport use. Students will help develop the On 29 July 2005, the Public Transport Division hosted a school travel plans. forum for young people and other stakeholders to discuss – School travel planning pilot. Wellington Secondary issues for young people in using the metropolitan public College in Mulgrave involved students in the planning transport system, including enforcement issues, and identify and development of their school travel plan which possible strategies for addressing the them. included brochures translated into community Sixty to 70 people attended, about half of whom were young languages, upgrading the bicycle compound, people aged between 14 and 19 years. The forum was signage about sustainable transport, and events. supported by the Office for Youth, the Centre for Multicultural The school sees the involvement of students in the Youth Issues, the Western Young People's Independent process as key to the program’s success. The school Network and Metlink. plans to continue its successful ‘Walk and Ride to School Days’, with significant organisational input The next step is to analyse the information gathered and from students. identify forward actions.
– Universities program. Newly enrolling students at three TravelSmart Education Melbourne universities, La Trobe (Bundoora), Monash (Clayton) and Melbourne (Parkville) participated in a School travel planning: The congested precinct pilot project TravelSmart program. During enrolments sessions in will continue to assist participant schools to develop and January - February 2005, students were asked how implement their school travel plans. This will involve they intended to travel to their campus, and were developing new program initiatives or pilots responding to offered a range of material promoting more issues outlined by students, parents and schools. Plans for sustainable travel choices. At Monash University in continued development of school travel planning, will be Clayton, TravelSmart funded a training program to developed in 2005–06. enable a team of young people to quickly ascertain Universities: Discussions with universities for the continuation the needs of enrolling students and provide on-the- and extension of enrolment programs and wider travel spot advice and materials to make sustainable travel planning are under way. choices easier. Results of previous programs have shown significant sustainable transport outcomes.
191 DOI Annual Report 2004–05 Whole-of-government reporting framework: Indigenous Affairs
Background Key strategies and initiatives
The Government has committed to working in partnership Human resources with Indigenous Victorians to create a society that : DOI’s Indigenous Employment Plan • is proud of its Indigenous history The key commitment for DOI in relation to the Victorian • addresses dispossession and disadvantage Indigenous community is its Indigenous Employment Plan, which was developed as a key element of the DOI Diversity • heals the hurt of past injustices Plan. DOI has begun implementing the Diversity Plan, taking • builds a positive future. into account the whole-of-government Indigenous Employment Strategy coordinated by the OPE. In order to achieve this, three main policy goals have been established: DOI has appointed an Indigenous Liaison Officer to:
1. Stronger communities: supporting Indigenous • provide specialist support in developing and communities with the necessary structures, funding and coordinating Indigenous awareness training program for programs necessary to develop their capacity to drive DOI staff change. • develop Indigenous work experience and traineeship 2. Reconciling the legacy of history: symbolic and practical initiatives measures necessary to heal the legacy of dispossession • develop an Indigenous scholarship program. of land and culture.
3. Building a strong economic base: providing Indigenous Secondary school partnership Victorians with equal access to social and economic DOI is developing partnerships with regional high schools activities. and their Indigenous communities in preparation for an The Government’s policies for improving support for ongoing work experience program. Shepparton High School Indigenous communities focus on the following key issues: is supportive of the work experience proposal and is keen to participate in the program. • health and wellbeing
• community care, child protection and justice Consultation, education and participation • education (including non-formal learning and VicRoads and MSV are the agencies in the Infrastructure development) portfolio which have the most significant degree of consultation with Indigenous organisations and communities. • economic participation. These agencies have in place processes for consulting and The following information summarises the main initiatives DOI engaging with Indigenous communities. MPV also considers is implementing to address some of these issues. Indigenous issues when determining where to locate infrastructure projects.
Appendixes 192 Whole-of-government reporting framework: Indigenous Affairs VicRoads Goulburn Valley Highway Project In direct consultation with local Indigenous communities, VicRoads works with the Yorta Yorta Cooperative to reconcile VicRoads has developed protocols and agreements for the the legacy of history, through a cooperative approach to management of Native Title and Indigenous cultural heritage cultural heritage approvals and onsite monitoring during matters that arise during the planning and construction of construction. Routes for the Shepparton Bypass and road projects. Strathmerton Deviation were approved. Monitoring took place for preconstruction activities for the Arcadia Section of the VicRoads also works with a number of Aboriginal bodies in Goulburn Valley Highway duplication and excavations during the fields of Native Title and cultural heritage as follows: the construction of the Cobram Bridge. • Native Title Services Victoria Geelong Bypass Project • Native title claimant and traditional owner groups (including the Yorta Yorta Nation Aboriginal Corporation) VicRoads and the Wathaurong Aboriginal Cooperative (WAC) signed a memorandum of understanding setting out • Local Aboriginal cooperatives (for example, Wathaurong protocols for the management of Indigenous issues linked to Aboriginal Cooperative, Wurundjeri Tribe Land the construction project. Compensation and Cultural Heritage Council) Ongoing consultation was carried out with the WAC • Aboriginal Affairs Victoria (AAV) Aboriginal cultural throughout pre-construction activities, including the heritage program regions. employment of WAC monitoring personnel.
Various Aboriginal groups monitor significant improvement A memorandum of understanding was considered the most works being carried out by VicRoads, which involve appropriate form of documenting agreed practices and was disturbing previously undisturbed ground. Examples include: referenced in the project’s contract documents. The documents record commitments from VicRoads (and by association, Albury Wodonga National Highway Project the contractor) that ensures due diligence in protecting VicRoads employed a cultural heritage archaeologist and registered AAV sites and any new sites yet to be discovered. worked with the local Indigenous community to: The memorandum of understanding sets out monitoring • conduct an initial field survey to identify and record protocols during construction and the relocation of artefacts Aboriginal places or objects that may be affected by the to ensure heritage values are preserved during construction. works The WAC has agreed to adopt strategies to minimise • identify areas where further surface/subsurface mapping, disruption and cooperate with the construction schedule of salvage and analysis is required the project. Furthermore, the agreement provides employment opportunities for the Aboriginal community. • conduct further works and prepare/submit a report to obtain an approved ‘Consent to Disturb’. Acknowledgement of Indigenous concerns The ‘Consent to Disturb’ was obtained. There was no VicRoads Environmental Services supports and advises on requirement for ongoing Aboriginal monitoring during the development of project and area-specific cultural heritage construction provided relevant contractor employees agreements with various Indigenous groups across the State. obtained training in cultural heritage and artefact The main objectives are to: identification. Training was provided and the contractor was able to commence clearing and stripping works. • ensure Indigenous input into road projects • strengthen relationships with Indigenous stakeholders
• ensure Aboriginal cultural heritage is managed in a consistent and effective way.
193 DOI Annual Report 2004–05 There have been a number of key achievements during AAV’s role in marine pollution clean-up operations is to 2004–05, including the following: advise on actions required to minimise the risk of ground- disturbing activities that contravene State and • development and release of a new Aboriginal and Commonwealth Aboriginal heritage protection legislation. Cultural Heritage Agreement template Once notified, AAV will alert the designated Oil Spill • agreements and protocols developed in relation to: Archaeologist who will:
– Cobram-Barooga Bridge Project • provide information on the precise location of known Aboriginal archaeological sites in the area and mark their – Geelong Bypass Project boundaries on the ground – Bass Highway (Stage 4). • survey for Aboriginal archaeological sites in the areas • draft agreements prepared in relation to: proposed for the construction of new access roads, associated staging/storage areas and other ground – Calder Corridor disturbing activities required for pollution clean-up – Wurundjeri Tribe Land Compensation and Cultural operations. Heritage Council area Major Projects Victoria – Echuca Murray River Bridge Project
– Robinvale-Euston Bridge Project Hazardous Waste Siting project Studies undertaken during site selection for the Hazardous – Bass Highway Corridor. Waste Siting project have taken into account Indigenous and • ongoing administration, review and improvement of the cultural values. These values must be and will continue to be VicRoads – Yorta Yorta Nation General Area Agreement. satisfied for the duration of the project.
Safety Awareness programs for Indigenous people Commonwealth Games Village site VicRoads has programs to educate Indigenous people. In making the site selection for the Commonwealth Games Examples include assisting Indigenous youth in Gippsland in Village Site, the issue of Native Title was considered, and a preparing for learner permit testing and further educating Department of Natural Resources and Environment report to young Indigenous drivers in the Latrobe Valley to help them MPV (of June 2001) states that the Native Title at the Royal to be safer drivers. Park site in Parkville is extinguished by a previous exclusive possession act occurring prior to 23 December 1996. Marine Safety Victoria MSV is responsible for ensuring there is an effective Melbourne Wholesale Markets response to marine pollution incidents in State waters. As part of carrying out due diligence on the chosen site a Through the development of Regional Marine Pollution cultural heritage impact assessment was conducted which Contingency plans, MSV has put arrangements in place for took into account Indigenous values. designated Control Agencies to be appointed to respond to incidents within their areas of responsibility.
There is a requirement that AAV be notified at the earliest opportunity in the event of the occurrence (or likelihood of occurrence) of marine pollution incidents where it is considered that pollution will impact on the shoreline (necessitating foreshore clean-up action). Responsibility for contacting AAV rests with MSV or the agency controlling the response.
Appendixes 194 Whole-of-government reporting framework: Indigenous Affairs Forward priorities
Indigenous work experience placement Public Transport Division, partnering with HRM Branch, will provide three Indigenous secondary school students with an alternative pathway to permanent employment within the VPS, initially through a partnership arrangement with Shepparton High School.
Students will gain an understanding of the type of mainstream work available in Victorian Government through a short work placement as part of their VCAL or VCE VET program. Once they have completed their VCAL or VCE, an opportunity to participate in the YES traineeship will be available to participants in the program which, if accepted, could lead to permanent employment. A YES traineeship within the Public Transport Division would be accompanied by access to a mentoring program and other supports specific to the scheme.
To support the program, training in Indigenous cultural awareness will be offered to staff that work alongside the students.
VicRoads Calder Corridor Project VicRoads will seek to develop a Project Specific Agreement with Indigenous Stakeholders for the Calder Freeway upgrade. The agreement is intended to clarify, regulate and promote an effective working relationship between VicRoads, the Dja Dja Wurrung Peoples Native Title claimant group, the Jaara Jaara Loddon Aboriginal Corporation and the North West Cultural Heritage Program Region in relation to the Calder Highway upgrade between Kyneton and Ravenswood.
The agreement will outline processes for the identification and protection of Aboriginal cultural heritage.
195 DOI Annual Report 2004–05 Whistleblowers Other available information Protection Act 2001
Report pursuant to section 104 of the Act for the The Directions of the Minister for Finance, pursuant to the year 1 July 2004 to 30 June 2005 Financial Management Act 1994 require a range of • The number and types of disclosures made to DOI: 2 information to be prepared in relation to the financial year.
One disclosure related to processes managed by DOI public This material is itemised below and, where not published in officers. The second disclosure was incorrectly made to DOI this report, is retained by the Accountable Officer and can be and related to conduct of public officers of another public made available to Ministers, Members of Parliament and the body. public on request, subject to the limitations of the Freedom of Information Act 1982. • The number of disclosures referred by DOI to the Ombudsman (to determine whether they are public • declarations of pecuniary interests completed by all interest disclosures): 2 relevant DOI officers for the year ended 30 June 2005
These were the disclosures referred to above. • details of shares held by senior officers as nominees or held beneficially in a statutory authority or subsidiary • The number and types of disclosed matters referred to DOI by the Ombudsman: NIL • details of publications produced by DOI and where the publications can be obtained • The number and types of disclosed matters referred by DOI to the Ombudsman to investigate: NIL • details of changes in prices, fees, charges, rates and levies charged by DOI • The number and types of disclosed matters taken over by the Ombudsman from DOI: NIL • details of major external reviews carried out on DOI
• The number of requests by complainants to have their • details of major research and development activities disclosed matters investigated by the Ombudsman due undertaken by DOI to their dissatisfaction with the way DOI is investigating • details of overseas visits, including a summary of the the matter (the circumstances are set out in section 74 of objectives and outcomes of each visit the Act): NIL • details of major promotional, public relations and • The number and types of disclosed matters that DOI has marketing activities undertaken by DOI to develop declined to investigate: NIL community awareness of DOI and the services it • The number and types of disclosed matters that were provides substantiated on investigation and the action taken on • details of assessments and measures undertaken to completion of the investigation: NIL improve the occupational health and safety of employees
Two investigations are not yet completed by the • a general statement on industrial relations within DOI Ombudsman, one relating to processes managed by DOI and details of time lost through industrial accidents public officers and referred to the Ombudsman by DOI, and and disputes a second relating to conduct of public officers of DOI referred • a list of major committees sponsored by DOI, the by a person directly to the Ombudsman. purpose of each committee and the extent to which the purpose has been achieved.
Requests for information should be directed to:
Mr Bob McDonald Executive Director Corporate Resources Department of Infrastructure Level 14, 80 Collins Street Melbourne, Victoria, Australia 3000
Appendixes 196 Victorian Industry Building Act Compliance Participation Policy
In October 2003, the Victorian Parliament passed the The Directions of the Minister for Finance require this Annual Victorian Industry Participation Policy Act 2003 which requires Report to include a statement on the extent of compliance public bodies and departments to report on the with the building and maintenance provisions of the Building implementation of the Victorian Industry Participation Policy Act 1993, for publicly-owned buildings controlled by DOI. (VIPP). Departments and public bodies are required to apply DOI does comply with the building and maintenance VIPP in all tenders over $3 million in metropolitan Melbourne provisions of the Building Act 1993. and $1 million in regional Victoria.
During 2004–05, 12 DOI contracts began to which the VIPP applied. Their total value was $195 million.
The VIPP commitments by contractors under these contracts included:
• an overall level of local content of 76 per cent
• 569 full-time equivalent jobs
In addition, the following benefits to the Victorian economy in terms of skills and technology transfer were provided by contractors under these contracts:
• training of workers on Rail Track Safety Awareness
• industry best practice model in the provision of telecommunications carriage services
• telecommunications skills transfer
• investment of up to $100 million on telecommunications network development
• up-skilling of workers in the areas of Laser Tracker and Computer Aided Theodolite (CAT) validation and large precision machining. This skills transfer will be used to pursue expert opportunities in the global aerospace field
• up-skilling of contractors with installation techniques for power supply units
• increased uptake of green energy, leading to an increase in funds for the development of technology and skills in this area of the energy sector
• up-skilling of personnel through the introduction of state- of-the-art technology for the tracking of transport buses, prediction of travel times and integration of real-time passenger information systems.
There were no contracts completed in this period to which the VIPP applied.
197 DOI Annual Report 2004–05 Major publications 2004–05
Transport Information and Communication Technology Ministerial Guidelines: Port Safety and Environment Connecting Victoria – Nos 15, 16, 17, 18, 19 Management Plans The Broadband Framework Cruising Victoria Connecting Communities: the second wave Victorian Ports Strategic Framework Connecting Communities: achievements Ports Agenda 2004 Livewires – attitudes to ICT careers among 17-year-olds An overview of the draft Geelong Port Strategic Land Use Plan ICT Skills Snapshot Regional Fast Rail Signalling Bulletin Collaborative Partnerships Revitalising Victorian Rail ICT Combined Advantage Study Track Record – Nos 20, 21, 22, 23
Bus Operator Accreditation Corporate
Fast Rail Bulletin Update DOI Annual Report 2003–04
Metropolitan Transport Plan DOI Corporate Plan 2004–07
TravelSmart Employer Pack Environmental Performance Report: 2004–05
TravelSmart – year in review
Major Projects Building One Victoria Framework
Austin Mercy Community Bulletin
Industrial Waste Management Community Update
Royal Melbourne Showgrounds Redevelopment
Energy Industries and Resources The Greenhouse Challenge for Energy
Cross-ownership Rules for the Energy Sector
Appendixes 198 Environmental Performance Report: 2004–05
This environmental performance report has been prepared in accordance with the requirements set out in the Financial Reporting Direction 24 (FRD 24): Reporting of Office-based Environmental Impacts by Government Departments. It relates to DOI’s office-based activities only. In general, total usage has increased due to an increase in FTE (full time equivalent) staff compared to 2003–04. However, it should be noted that usage per FTE has decreased.
Environmental aspect Unit of measure 2004–05 actual 2003-04
Energy1 Use per FTE2 megajoule 11,265 11,459 Use per square metre of office space megajoule 447.5 425.8 Total use gigajoules 10,529 9167
3 Total associated greenhouse gas emissions tonnes of CO2 equivalent 4,211 3,667 Total Green Power (% of total) % 6.7 4.1 Total cost of Green Power $ 6,628 4,053 Paper Use per FTE reams4 24.7 29.2 Total use reams 23,087 23,342
Transportation5 Total fuel consumption gigajoules 11,829 10,062 Fuel consumption per FTE gigajoules 13.2 13.3
Total associated greenhouse gas emissions tonnes of CO2 equivalent 834.1 735.8
Associated greenhouse gas emissions per FTE tonnes of CO2 equivalent 0.93 0.97 Total travel associated with departmental operations kilometres 2,870,333 2,584,249 Travel associated with departmental operations per FTE kilometres 3,196.4 3,404.8 Employees regularly (>75% of time) using public transport, cycling and walking to and from work6 per cent - 85.3
Waste7 Generated per FTE kilograms 51.9 74 Total recycled8 kilograms 44,355 25,634
Water9 Consumption per FTE litres 16,718 20,322 Total consumption litres 15,624,362 16,258,000
1 Tenancy light and power at DOI operations: 80 Collins Street, 6 TravelSmart Staff Survey was not undertaken during 2005. 55 Collins Sreet, Blackwood Street and 60 Collins Street. DOI has 7 Waste data assessed from 80 Collins Street waste audits in received an agency-specific circumstance adjustment for DOI’s March 2005. computer facilities from the Sustainable Energy Authority of Victoria (SEAV). This data has been excluded from total 8 Total recycled includes compost and commingled recycling. consumption reported. Paper from security destruction bins, some heavy cardboard and other recycling programs have been excluded. 2 The FTE as at 30 June 2005 was 934.6. 9 DOI occupies multi-tenanted buildings, and total consumption 3 AGO Factors and Methods Workbook–Section B, Table 4: Emission includes base building water consumption. Water consumption factors for electricity purchased/used/delivered per kWh. has been estimated and/or extrapolated for some sites. As DOI 4 500 sheets of A4 white and coloured office paper (1 ream A3 = sites are not separately metered, consumption is based on 2 reams A4). percentage of building occupied and total building consumption, and may not give a true indication of DOI sole consumption. 5 FTE for transport revised to exclude executives with salary- packaged vehicles. Data for travel associated with departmental operations calculated based on pool, dedicated and hire vehicles only. EPA Greenhouse calculator used to calculate gigajoules and tonnes CO2.
199 DOI Annual Report 2004–05 Other Information: 2004–05 key achievements DOI’s Environmental Management System (EMS) was 1. Actions taken during the year to reduce energy use responsible for driving strategies and achieving a number of in buildings: goals, including: • awareness programs to encourage people to switch-off PCs after use, including the implementation of a ‘switch- • a 15.4 per cent reduction in the use of paper over the off’ campaign aimed at encouraging the switching-off of year and a more than 35 per cent reduction since PCs. monitoring began in 2002–03
• promotion of environmental purchasing considerations • the external environmental audit indicated high levels of for appliances to include energy star-ratings and power- progress relating to the DOI EMS and environmental saving features initiatives
• investigations of printer consolidation to reduce the • expansion of the DOI ‘Green Fleet’ from 24.6 per cent at number of printers using energy across DOI. the beginning of 2004–05 to 42.6 per cent at the end of the financial year
2. Actions taken during the year to reduce energy use • expansion of the DOI recycling program to include Green in the DOI’s vehicle fleet: Collect and mobile phone recycling • continuing to increase the number of LPG and 4-cylinder • start of e-waste recycling (PCs and monitors) vehicles. There were a total of 16 vehicles that were LPG/4-cylinder at the start of the financial year. This was • inclusion of environmental considerations into work increased to 29 LPG/4-cylinders at 30 June 2005, practices. comprising more than 40 per cent of the DOI fleet.
• monthly publishing of greenhouse gas emissions from The year ahead the vehicle fleet, as well as regular reminders for green The EMS will continue to drive DOI’s office-based travel options environmental performance. Planned activities for 2005–06 • Lease and promotion of a Toyota Prius include:
• EOs and dedicated drivers are encouraged to consider • continual improvement of the EMS, including an external LPG-fuelled or 4-cylinder cars when selecting a audit by an environmental auditor appointed under the replacement vehicle. Environment Protection Act 1970 • Working towards rationalising the DOI printer fleet and 3. Actions taken to demonstrate environmentally proposing reductions in the total printer fleet to reduce responsible purchasing activities: energy use • purchasing more than 94 per cent of our monthly A4 • increasing the proportion of hybrid vehicles into the DOI paper with recycled content fleet and seeking further greenhouse gas reductions • development and dissemination of an environmental • seeking further opportunities for paper and waste purchasing check list reductions and/or recycling options • awareness through Green Purchasing workshops and • continuing to include environmental considerations into provision of a Green-stationery Guide to purchasing work practices. officers.
Appendixes 200 Disclosure Index
The Annual Report of the Department of Infrastructure is prepared in accordance with all relevant Victorian legislations. This index has been prepared to facilitate identification of the Department’s compliance with statutory disclosure requirements.
Ministerial Directions
Legislation Requirement Page reference Report of Operations
Charter and purpose FRD 22 Manner of establishment and the relevant Ministers 1–2, 83–84 FRD 22 Objectives, functions, powers and duties (iii–v, ix–x), 1–2, 89–90 FRD 22 Nature and range of services provided 1–2, 4–8
Management and structure FRD 22 Organisational Structure 3
Financial and other information FRD 22 Statement of workforce data and merit and equity 175–178 FRD 22 Summary of the financial results for the year 9–10 FRD 22 Significant changes in financial position during the year 9–10 FRD 22 Operational and budgetary objectives and performance against objectives (iii–v), 11–74, 136–165 FRD 22 Application and operation of Freedom of Information Act 1982 178 FRD 22 Compliance with building and maintenance provisions of Building Act 1993 197 FRD 22 Statement on National Competition Policy 179 FRD 22 Application and operation of the Whistleblowers Protection Act 2001 196, 218–228 FRD 22 Details of consultancies over $100,000 180 FRD 22 Details of consultancies under $100,000 180 FRD 12 Disclosure of major contracts 179 FRD 22 Statement of availability of other information 196 FRD 22 Occupational health and safety 177 FRD 15 Executive officer disclosures 114, 175–176 FRD 8 Budget portfolio outcomes 170–174
201 DOI Annual Report 2004–05 Ministerial Directions
Legislation Requirement Page reference Financial Statements
Financial statements required under Part 7 of the FMA SD 4.2 (c) Compliance with Australian accounting standards and other authoritative 83–88 pronouncements SD 4.2 (c) Compliance with Ministerial Directions 83 SD 4.2 (d) Rounding of amounts 88 SD 4.2 (c) Accountable officer’s declaration 77 SD 4.2 (f) Financial statements 75–134 SD 4.2 (b) Statement of financial performance 79 SD 4.2 (b) Statement of financial position 80 SD 4.2 (b) Statement of cash flows during the year 81
Other disclosures in notes to the financial statements FRD 9 Departmental disclosure of administered assets and liabilities 126–130 FRD 13 Disclosure of parliamentary appropriations 100–101 FRD 21 Responsible person and executive officer disclosures 113–114 FRD 23 Superannuation liabilities and disclosure 123
Appendixes 202 AUTHORITIES STATUTORY
STATUTORY AUTHORITIES Statutory Authorities
Energy Safe Victoria • New television campaigns will be • Continue gas safety awareness ESV was established on 10 August 2005 developed to stress the importance campaigns to address the dangers of: under the Energy Safe Act 2005 to of safety switches, the need to only (i) leaving cooking unattended replace the OCEI and the OGS. Another employ a qualified tradesperson, to (ii) drying clothes too close to heaters function – pipeline safety – is expected never undertake DIY electrical work, (iii) the necessity to regularly service to transfer to the new organisation from to Look Up And Live, and to insist gas appliances DPI during 2005–06. ESV is a technical on a certificate of electrical safety. (iv Barbecue and LPG safety. regulator responsible for ensuring the • Raise awareness of No Go Zones • Continued maintenance and safe supply and use of electricity and (i) reduce dangers of cranes and enhancement of Victoria's gas in Victoria. other heavy equipment coming successful co-regulatory Safety into contact with overhead Case regime, ensuring ESV and Priorities for 2005–06 powerlines the gas industries are prepared • There will be continued focus to (ii) stress the importance of to successfully deliver Emergency ensure the successful and seamless underground assets and the Management responsibilities via transfer of OCEI and OGS people ‘Dial before you Dig’ process. testing and system enhancements. and functions into the new energy • ESV will continue the work of the • ESV will continue the administration safety regulator, ESV. OCEI and OGS in assisting the of a rebate scheme to assist • The campaign to discourage ‘live’ electricity and gas industries to pensioners and Health Card holders work by electrical tradespeople will address the technical and to remove aged and dangerous be analysed and enhanced as engineering skills shortage. appliances from their homes, necessary to help stop the practice. particularly instantaneous water • ESV will continue its work in the heaters. • Further campaigns are envisaged to Major Events Program to develop an increase electricity safety awareness industry code of practice covering • Continue work on a gas appliance across rural Victoria, warning, in the use of gas at major events. and equipment energy efficiency particular, of the dangers of program in partnership with industry, • The continued roll-out of the ‘Take on overhead powerlines. the Australian Greenhouse Office the Critics’ LPG and Outdoor Heater and the SEAV. • The voluntary electrical Home Safety Safety Campaign. Safety information Inspection Scheme will be formally and guidelines are being distributed • Active involvement in the development introduced. The scheme will to more than 12,000 commercial of national approaches to gas encourage home owners and catering businesses and to Victorian appliance standards, appliance landlords of property 25 years old councils for adoption into footpath efficiency and appliance approval and upwards to arrange for an trading guidelines. This project is a schemes. approved and registered ESV collaborative effort with the For more information, please visit: electrical Home Safety Inspector Metropolitan Fire Brigade, Country www.esv.vic.gov.au to inspect the electrical wiring to Fire Authority, WorkSafe, and ensure it is not overloaded and/or Restaurant and Catering Victoria. deteriorating. National Electricity Code • Increased community and industry Administrator • There will be an overall review education programs in collaboration Until 1 July 2005, NECA was responsible for public and industry awareness with safety partners. for the administration, enforcement and programs and strategy for electricity amendment of the National Electricity and gas safety to ensure cost Code that governs the operation of NEM. effective and timely communications. The functions of NECA have since been transferred to the new AEMC and AER.
Statutory Authorities 204 Under the NEM Agreement, to which Key achievements in 2004–05 • Progress was made by the OCEI on Victoria is a party, the Minister for Energy • For the fourth consecutive year, its joint initiative with the Metropolitan Industries and Resources appointed a there were no fatalities due to Fire Brigade and the Country Fire member to the board of NECA and electrocution on electrical Authority to improve the reporting annually endorsed its corporate plan. installations in Victoria. One of details of electricity-caused fires, NECA is expected to be dissolved in accidental electricity-related fatality and to seek solutions to combat 2005–06 after finalising certain residual was recorded for the year in an the incidence of them. administrative matters. incident involving contact with • Constant audits and investigations For more information, please visit: overhead powerlines. by the OCEI assisted in stamping out www.neca.com.au • There was continuing involvement the practice of importers attempting by the OCEI in the review of Victorian to circumvent the requirements of the Electricity Safety Act, and put the National Electricity Market energy safety regulators. It also general public in danger by Management Company made a major contribution towards the establishment of ESV. attempting to supply unapproved NEMMCO Limited is responsible for and potentially unsafe equipment. the administration and operation of NEM • On the recommendations of the in accordance with the National Electricity OCEI, the Governor-in-Council • The OCEI continued its successful Law and the National Electricity Rules. approved Electricity Safety administration – on behalf of the Management schemes for the Victorian Government – of the Established in 1996 as both market electricity distribution businesses. energy efficiency labelling and operator and system operator, Minimum Energy Performance NEMMCO functions in accordance • The OCEI worked with NECA’s Standards program. with its Members' Agreement. Victorian chapter to develop a program discouraging electrical • The scheme to register all NEMMCO prepares a Statement of workers from working ‘live’ on lineworkers in Victoria was formally Corporate Intent and budget each year switchboards and other introduced. in consultation with the participants in installations. the NEM. • New Electricity Safety (Electric Line • There was major work involved Clearance) Regulations 2005 – For more information please visit: in preparing the electricity safety incorporating the Code of Practice for www.nemmco.com.au initiative relating to voluntary Home Electric Line Clearance as a schedule Safety Inspections. The scheme will within the regulations – were Office of the Chief Electrical be launched in 2005–06 under the promulgated at the end of June 2005. Inspector auspices of ESV. • The OCEI engaged the Monash In August 2005, the OCEI merged with • The OCEI continued to take University Centre of Electrical OGS to establish the new energy safety every opportunity to promote the Engineering to undertake a research regulator, ESV. importance of installing safety study to determine the integrity of old The former OCEI operated under the switches. More than 60 per cent of electricity infrastructure in domestic Electricity Safety Act 1998 as a technical Victorian properties now have safety premises, when compared with the regulator responsible for ensuring the switches installed. original design standards for that safe supply and use of electricity in equipment at the time of installation. • There was continued promotion Victoria. It also administered the scheme by the OCEI of the certificate of Priorities for 2005–06 for electricity appliance efficiency and electrical safety scheme. The vast the energy labeling of certain electrical These are outlined in the section for ESV. majority of registered electrical appliances. contractors and licensed electricians For more information, please visit: now use the scheme. www.esv.vic.gov.au
205 DOI Annual Report 2004–05 Office of Gas Safety • Worked with other authorities and the Australian Gas Association’s In August 2005, the OGS merged with with industry on Victoria’s Major second-tier certifications scheme. Events Program to develop a unified the OCEI to establish the new energy • Conducted 72 presentations approach to gas safety. An industry safety regulator, ESV. covering topics such as gas working group is well advanced in installations and responsibilities, The former OGS was a statutory developing a draft code of practice in changes to regulations, supply authority, established under the Gas relation to gas use at major events. Safety Act 1997, to monitor and promote pressures, gas use in commercial gas safety in Victoria. • Introduced policy and developed a premises, and consumer gas safety. major campaign (delivered in • Conducted 48 compliance audits OGS objectives are achieved by setting partnership with fire agencies and at gas appliance point-of-sale and enforcing gas safety measures and Workcover) to improve the safety locations. standards to ensure the safety of gas of outdoor heaters in public places. supply, transmission, distribution, • Audited 47 public events and • Completed a significant update of the installations and to enhance public and provided safety information and OGS web site. The web site has been industry awareness of gas safety check lists to a further 142 events restructured to provide better access requirements. to ensure public safety where LPG to information by stakeholders and is used for heating and cooking. Key achievements in 2004–05 to introduce a content management system which allows OGS to update • Completed 38 investigations into • Contributed positively to the material in-house. The web site serious gas-related incidents and Victorian Government’s review of content has also been significantly a further 78 incidents of a less energy safety statutory regulators. updated and expanded. serious nature. Since the Government’s decision in March to amalgamate the OGS, • Worked with DHS on the removal • Successfully carried out OCEI and the pipelines functions of dangerous instantaneous gas 15 prosecutions in relation to of DPI, OGS has worked with OCEI water heaters from 1,285 DHS- breaches of the Gas Safety Act to develop common business and owned homes and an estimated and Building Act. corporate plans and to establish 500 privately-owned ex-DHS homes, • Conducted winter and summer common administrative and including the administration of a public education television financial systems in preparation rebate scheme providing financial campaigns highlighting the for start of ESV in 2005–06. assistance to pensioners and Health importance of maintaining Card holders. • Continued operation and barbecues and not leaving cooking enhancement of Victoria's • Contributed extensively to national unattended. The campaigns were co-regulatory safety case regime, standards work on pipelines, gas conducted in partnership with the including conducting 31 safety networks, appliance installation code, Metropolitan Fire Brigade and the case audits as part of OGS’ five appliance standards and gas quality Country Fire Authority. year audit cycle and to address standards. specific risks relevant at the time Priorities for 2005–06 • Provided model regulations for gas to each sector of the gas industry. These are outlined in the section for ESV. appliance energy efficiency, and • Enhanced the gas industry’s and joined the Australian Greenhouse For more information, please visit: OGS’ emergency management Office-led group for developing and www.esv.vic.gov.au preparedness via system implementing a 10-year strategic plan. improvements and the annual gas • Inspected 3,662 gas installations industry emergency exercise. and reviewed 1,130 complex industrial gas appliances for acceptance. In addition, a further 179 commercial catering gas appliances were inspected under
Statutory Authorities 206 Port of Hastings Corporation • A number of presentations have • Conclude discussions with TollPorts With the launch of the Victorian Ports been made to community groups on the probable extension of the Strategic Framework in November 2004, and local governments within the Port Management Agreement. region. These are designed to inform the Port of Hastings was identified as Please visit TollPorts for more the community about the role and the preferred location for expansion into information at: the strategic direction of the POHC. container trades when capacity at the www.tollports.com.au Port of Melbourne is reached. In the • Satisfied environmental obligations meantime, Hastings is seeking to grow under the Port Management Port of Melbourne Corporation trade in bulk and break-bulk cargoes. Agreement. The current trade mix includes steel The Port of Melbourne is Australia’s • In conjunction with DOI’s Freight and petroleum products. largest and busiest container port, Logistics and Marine Division, handling 37 per cent of the nation’s Port of Hastings Corporation (POHC) POHC appointed Maunsell container trade. It is also one of supervises the Port Management Australia Pty Ltd as consultants to Australia’s largest general cargo ports. Agreement with TollPorts, which prepare the Port of Hastings Thirty-seven container shipping lines, as operates the port on a day-to-day basis. Strategic Land Use and Transport well as a number of other general cargo PoHC is responsible for guiding the Access Corridor Plan. carriers, make approximately 3,300 ship future development of the port to Priorities for 2005–06 calls a year to Melbourne. become an economically, socially and environmentally sustainable facility. PoHC • Work with the Government to The port is situated at the north of Port seeks to facilitate relationships with the achieve its stated aims and Phillip Bay. It is serviced by more than port operator and the wider community objectives for the Port of Hastings’ 100 nautical miles of shipping channels and to add value where possible. role within the network of Victorian and fairways between the Port Phillip commercial ports. Heads and berths located on the Yarra Key achievements in 2004–05 and Maribyrnong Rivers, Williamstown • Develop additional communication and Station Pier. • POHC appointed Ralph Kenyon as links including a POHC web site. CEO in September 2004. Continue to work with the Port of Key achievements in 2004–05 • In December 2004, a new office was Hastings Community Reference • The POMC invested $25.2 million opened in the town of Hastings to Group to reinforce high levels of during the year on a wide range provide a visible presence and to community participation in port of infrastructure projects in the increase interaction between POHC planning. port. This leveraged more than and stakeholders. The office is • Finalise the Port of Hastings $75.6 million of private-sector linked via ADSL with the State Strategic Land Use and Transport complementary investment. Government Network. Access Corridor Plan to inform • Total trade through the port • The Port of Hastings Community government and local organisations increased by 8.4 per cent to Reference Group was established in of the future development of the 64.4 million revenue tonnes, the April 2005 comprising Port of Hastings. fourteenth consecutive year of representatives from the local • In conjunction with TollPorts, growth. Container throughput community. An independent develop a Port of Hastings increased to a record 1.91 million Chairman has been appointed. Marketing Plan to promote the port Twenty Foot Equivalent Units (TEU). and its facilities in order to increase trade through the port.
207 DOI Annual Report 2004–05 • The responsibility for the • Develop an understanding of what The design effort alone will arguably management of Station Pier, which is the achievable rail/road share be the most intensive ever for a road includes cruise shipping, was balance for the port in the short and project in Victoria. transferred from DOI to the POMC medium term, what infrastructure Detailed plans are required for 45 km on 1 February 2005. systems are required, and what of freeway with 17 interchanges, commercial strategies are needed • The POMC successfully implemented two major bypasses at Ringwood to ensure the port achieves this a pricing policy within the framework and Dandenong, the State’s largest optimal rail/road share. of the ESC’s light-handed regulatory ever bridge construction program, two regime. This will enable it to generate • Ensure proactive compliance in 1.6 km-long tunnels under the Mullum a forward revenue stream by which to security, safety and environment Mullum Valley and the latest electronic operate the port effectively and fund requirements, together with the tolling system with its high-quality the future capital investment required implementation of a revised and customer services. In addition, to meet capacity demands until 2035. enhanced compliance framework. EastLink will deliver an exciting and vibrant urban and landscape design, • More than $2.5 million was spent on • Develop and implement a cruise with associated environmental security infrastructure in compliance ship strategy for 2006–07 and enhancements throughout the corridor. with the Commonwealth Maritime beyond, including options for the Security Act 2003. This included future maintenance, use and Key achievements in 2004–05 expenditure at liquid bulk berths, development of Station Pier. and the implementation of electronic • Successful adherence to bid • Gain Government endorsement access control at all common user timetable, including awarding the and implement projects to and bulk liquid berths. Concession to ConnectEast in accommodate the current and October and lodging the Concession • The Port Safety Environment future growth in the port’s trade. Deed in State Parliament. Management Plan was certified • Enhance POM’s community in late June 2005 and a Safety and • Achieving financial close for the relations strategy. Environment Management System project in November. was implemented. For more information, please visit: • Appointment of the Independent www.portofmelbourne.com.au Reviewer by SEITA and ConnectEast Priorities for 2005–06 in November. • Complete the channel deepening Southern and Eastern Integrated • Ensuring land was available and trial dredging program, undertake Transport Authority licensed to the Concessionaire in post-trial dredging analysis and After many years of planning, a timely manner. develop recommendations for the environmental studies and land supplementary EES, and prepare • Maintaining a high level of probity acquisition, the building of EastLink is associated documentation. to ensure that confidence was under way. ConnectEast and its design maintained in the bidding process. • Develop and implement strategies to and construct contractor Thiess John take advantage of the opportunities Holland (TJH) have now embarked on • Successful engagement with the and mitigate the risks associated with the task of delivering EastLink, Australia’s community through the Community the ongoing changes in the port’s largest urban road project, by 2008. This Advisory Group, numerous public transport logistics supply chains. ambitious program will require dynamic forums and public speaking management, a dedicated workforce engagements. equipped with advanced technology and the latest machinery, all with high-quality support services.
Statutory Authorities 208 • Development of an effective working Spencer Street Station Authority Priorities for 2005–06 relationship with the Concessionaire The role of the Spencer Street Station • Achieve the delivery of the and active management of the Authority is to ensure the effective redevelopment project with the Concession. delivery of the Spencer Street Station minimum amount of delay and • The establishment of SEITA's offices redevelopment and manage the station disruption to commuters and the in the Brandon Business Park, operation and facilities during the community. construction. This includes providing facilitating access to ConnectEast, • Ensure the safe and efficient acceptable facilities, services and TJH, the Independent Reviewer, operation of the Spencer Street accessibility to the Victorian community. municipal councils, community Station, including excellent customer groups and residents living along services and passenger information, Key achievements in 2004–05 the corridor. while construction continues and • Strong progress was achieved on • Start of major construction activities until handover to Civic Nexus. the station redevelopment, with key in March and start of Victoria's largest milestones including the opening • Ensure a high level of customer ever bridge building program in June. of the new Collins Street Concourse service and efficiency during the With construction ramping up to passenger area and the closure of Commonwealth Games in March an expected peak expenditure of the 80-year-old station subway. 2006. $100 million per month, SEITA must • The new interchange’s iconic wave • Ensure a seamless transition of continue to facilitate every facet of roof continued to take shape above management responsibility from EastLink. the station, with nearly all the roof the Authority to Civic Nexus while panels installed and the waterproof continuing to meet increased Priorities for 2005–06 layer over the ceiling panels almost service demand. • Licensing all project land, including complete. • Maintain strategic relations with the Dandenong Southern Bypass, all stakeholders and continue a by May 2006. • High-quality customer service continued to be delivered by the thorough approach to consulting • Maintaining effective and expanded customer service team and communicating with cooperative relationships with at the station, with more customer stakeholders at all levels. ConnectEast and TJH, the service staff working on the project • Establish a best practice monitoring Independent Reviewer and other key than ever before. and audit regime to ensure that stakeholders. • A free shuttle bus service began Civic Nexus meets its operational • Facilitating decisions to ensure to transfer passengers between the and asset management construction remains on track for train and bus interchanges, greatly responsibilities into the future. completion of EastLink in 2008. improving access and convenience For more information, please visit: • Facilitating government process for station users. www.linkingvictoria.vic.gov.au to achieve timely decisions • Emergency management procedures • Continuing the formal and informal and overall readiness for security engagement and coordination of alerts were strengthened. relevant agencies. • A safety upgrade was implemented • Working with ConnectEast and, on the station’s buggy service, if necessary, CityLink to support which helps mobility impaired inter-operability. passengers to move around the station during the redevelopment. For more information, please visit: www.seita.com.au • Improvements were introduced to the passenger information screens at the station and a comprehensive audit of all station signage commenced.
209 DOI Annual Report 2004–05 Transport Ticketing Authority • Oversaw sustained, improved VicRoads The TTA was established in June 2003, performance of the existing VicRoads role is to deliver social, specifically to manage all aspects of the ticketing system. economic and environmental benefits State’s interests in the existing public to communities throughout Victoria by Priorities for 2005–06 transport ticketing system, and to managing Victoria’s road system and its procure and oversee delivery and • Facilitate delivery of the New use as an integral part of the overall operation of the new smartcard solution. Ticketing Solution (NTS) and its transport network. quality assurance, from detailed Key achievements in 2004–05 requirements definition through Key achievements in 2004–05 • Launched the request for tender quality assurance, testing and Road safety for the smartcard solution, which commissioning sign-off. • In 2004–05, Victoria’s road toll received an excellent response from • Conduct validation tests at was 339, 11.5 per cent below the national and international industry numerous points throughout the average for the previous three years. participants. development, working in consort There were 343 deaths on Victorian with KAMCO to incrementally build • Extensively evaluated the 10 bids roads in 2004, the second lowest and confirm the solution in many for the smartcard solution from six road toll since comprehensive small steps. This approach will international consortia within a records began in 1951. rigorous probity regime. ensure that the solution’s direction and development continue to run to • In 2004, there were 6,365 serious • Upheld the output-based tender the targeted quality, schedule and injuries, a reduction of 322 (5 per to retain the onus on the contractor budget throughout the project. cent) compared to 2003 and the to ensure the solution meets lowest level since 1999. Preliminary • Tender and let contracts for ancillary Victorians’ need for a world-class research indicates that the severity services such as the customer call fare-payment system. of these injuries has reduced by centre and civil works. • Incorporated an ‘open architecture’ 22 per cent. • Analyse potential and negotiate to model as a benchmark in the • In 2004, pedestrian fatalities fell by 32, develop and exploit other commercial contract to prevent ‘lock-in’ to a a reduction of 39 per cent compared rights available from the smartcard single system or equipment supplier to 2001. Pedestrian serious injuries micro-payments infrastructure. for the contract term. This approach fell by 123, a reduction of 16 per cent is groundbreaking in this industry. • Complete detailed planning compared to 2001. for training of TTA test staff and • On 12 July 2005, the Premier and • Motorcycle fatalities were reduced transport operators’ staff for the Minister for Transport announced to 37 in 2004, the lowest level since transition process. that the smartcard solution contract 1970. was to be awarded to Keane • Complete detailed planning and • VicRoads implemented a number Australia Micropayment Consortium arrangements for substantial of road safety initiatives including: Pty Ltd (KAMCO). marketing and communication • Tender release to award was less programs to facilitate the transition - developing and adopting a Safe than 12 months, which sets a new to the new ticketing solution. System framework for road safety activities that focuses on timing benchmark for major • Continue to represent the State’s ‘safe roads’, ‘safe vehicles’ and ticketing contracts. interest in the ticketing solution to ‘safe speeds’ supported by manage its ongoing high standard • Worked collaboratively with increasing the safety and of performance and to ensure it representative customers, transit compliance of road users operators and government agencies, continues to meet Victorians’ needs. - completing 80 Blackspot to confirm agreement with the design For more information, please visit: projects funded under State and and content of the proposed solution www.keane.com/ or and the tender evaluation process. federal Blackspot programs www.doi.vic.gov.au/tta
Statutory Authorities 210 - completing $1.1 million worth • A program of works valued at • VicRoads worked with DOI on actions of road improvements at $97 million to upgrade a number of to further develop SmartBus, a 12 motorcycle blackspots in other major outer metropolitan roads cross-town bus service that connects consultation with the Victorian was begun. train stations, shopping centres and Motorcycle Advisory Council other community facilities. • The condition of the arterial road - completing a number of ‘safe network was maintained. This • New freeway ramp meters began speeds’ projects including the comprised 22,320 km of roads operation on the Monash Freeway School Speed Zones program, including 12,665 km that were at Ferntree Gully Road and Blackburn time-based 40 km/h speed zones transferred to VicRoads from Road so incoming vehicles can in 15 metropolitan strip shopping municipal councils as a result of merge with freeway traffic without centres and 50 km/h reduced the implementation of the Road disrupting flow. speed limits in 12 rural and outer Management Act 2004. • Works valued at approximately metropolitan townships • Arterial road bridges were also $2.6 million were completed to - starting nine and commencing maintained or strengthened to help people with impaired mobility 49 projects under the ensure the road network remained to negotiate the road system, Government’s $130 million Safer accessible. This included routine including treating 160 intersection Roads Infrastructure Program work on 5,095 bridges and specific and mid-block crossings with tactile repairs to 452 structures. ground surface indicators, fitting - Developing and launching the 30 traffic-light sites with audio tactile Victorian Vehicle Safety Strategy • The Road Management Act 2004 units, 18 bus stops and installing 2004–07 in conjunction with the was implemented, including two pedestrian lights that adjust crossing TAC and Victoria Police. sets of Regulations, five Codes of times to cater for slower moving Practice and a Road Management pedestrians at three locations. Road system management Plan which sets out the standards • The first section of the Craigieburn for the inspection, maintenance • Thirty-one metropolitan bicycle Bypass, between the Metropolitan and repair of the 22,320 km of projects were completed, adding Ring Road at Thomastown and freeways and arterial roads that 60 km to Melbourne’s Principal Cooper Street at Epping, was VicRoads manages. Bicycle Network. Forty-three regional bicycle projects were completed, opened in December 2004. • VicRoads new Environment adding approximately 50 km to • A 2.5 km section of the Calder Strategy 2005-2015 was launched Priority Bicycle Routes in cities and Freeway north of Kyneton was in May 2005. towns in regional Victoria. opened in January 2005 and a Traffic and transport integration 6.5 kilometre section south of Registration and licensing Ravenswood in May 2005. • As part of the Government’s • An electronic vehicle registration Tram Priority Program, more than • The Moorooduc Highway road and transfer system for vehicle 60 individual projects were widening from Golf Links Road dealers, known as Dealer on-Line, completed, including traffic signal to Frankston–Flinders Road was was implemented. It ensures that modifications and traffic engineering completed. all required registration details and treatments, to contribute to the registration fees are provided • The integration of CityLink with the Government’s target to reduce electronically to VicRoads and rest of the road network was tram travel times by 25 per cent validated to ensure accuracy. improved by widening the West on target routes. Gate Freeway between Bolte Bridge • 16.8 million registration and licensing • Yarra Trams was provided with and Montague Street. transactions were completed in access to images from the cameras 2004–05, with 85 per cent of • 156 projects were completed under relaying real-time traffic information to customers being satisfied with all the Better Roads Victoria Program, VicRoads Traffic Management Centre, services provided. including outer metropolitan roads. enabling it to identify and react more quickly to traffic problems.
211 DOI Annual Report 2004–05 Priorities for 2005–06 - improving VicRoads Key achievements in 2004–05 • Work with road safety partners to responsiveness to the Our people reduce the number of deaths and communities that it works with • Reviewed organisational structures serious injuries caused by crashes - improving VicRoads interaction to meet the challenges of national on Victorian roads by continuing with others in government to competitive markets. to focus on the Safe System strengthen policy development components of ‘safe roads’, ‘safe and services to the community • Completed VENCorp’s enterprise vehicles’ and ‘safe speeds’. This is bargaining agreement negotiations - further developing and supported by initiatives to improve (2005–08) following extensive sustaining VicRoads capabilities road-user behaviour. consultation with employee to improve its ability to respond representatives and staff. • Complete the Craigieburn Bypass to changing needs. by early 2006. For more information, please visit: Sound commercial management • Progress major infrastructure projects www.vicroads.vic.gov.au • Managed costs in the three key including the Calder Freeway project, financial reporting areas statutory Tullamarine–Calder Freeway Victorian Energy Networks gas (including gas Full Retail Interchange, Geelong Bypass, Corporation Contestability [FRC] and wholesale Pakenham Bypass, Albury Wodonga gas) and electricity. This assisted in Hume Freeway project and the Outer VENCorp is a statutory authority, delivering surpluses, which will be Metropolitan Road Program. established under the Gas Industry Act returned to industry in 2005–06. 1997. It is responsible for the operation • Implement VicRoads’ Corporate of the Victorian principal gas transmission • Continued to manage the Network Plan 2005-07, which is the guide network and the development and Tariff Rebate on behalf of the to assist VicRoads to better serve operation of the Victorian gas ‘spot’ Victorian Government. the community and help achieve market. It also provides planning the Government’s vision outlined services to the gas market and services Stakeholder value in Growing Victoria Together. The to facilitate gas retail competition in • Began the Gas Market Project to plan focuses on the following key Victoria. implement a staged development of challenges: In mid-1999, VENCorp acquired the Victorian gas market, in line with - implementing strategies in the electricity industry functions under the recommendations of the Gas Government’s MTP, including the Electricity Industry Act 1998 and Market Pricing and Balancing Review. improving the reliability and flow is the Transmission Network Service • Following completion of VENCorp's of road-based public transport, Provider (TNSP) for the Victorian second Stakeholder Value Survey, making existing roads operate electricity industry. As TNSP, VENCorp an action plan was developed and better, improving outer has responsibilities for planning and implemented to assist in the metropolitan arterial roads, directing augmentation of the Victorian ongoing delivery of high levels of improving access to key freight transmission system. stakeholder service. routes and improving national, regional and cross-town freight VENCorp also has operational and connections communications responsibilities during gas and electricity emergencies. - improving VicRoads regional transport planning with a focus on working with stakeholders to develop industry based transport plans
Statutory Authorities 212 Reliable systems – a reduction of 5 per cent for Victorian Rail Track • Reviewed VENCorp’s risk 2005–06 in the Gas Commodity VicTrack, on behalf of the State, management framework, issued Tariff, followed by a further owns the majority of Victoria’s rail guidelines and provided training 5 per cent reduction in 2006-07. infrastructure, land and passenger to all staff. In 2007-08 the rate will remain rolling stock. A large proportion of at the 2006–07 level these assets are leased to the Director • Managed and monitored a significant of Public Transport. In turn, the Director electricity incident impacting on – a reduction in the gas FRC rate of Public Transport sub-leases the Victoria (and south-eastern Australia) of 15 per cent in 2005–06 and a infrastructure/rolling stock to various on 13 August 2004, which was further 15 per cent in 2006–07. transport operators and track access contained to a small number of In 2007–08 the rate will remain providers. VicTrack has no direct commercial customers in Victoria at the 2006–07 level involvement in the provision of while affecting significant numbers – a reduction in VENCorp’s passenger or freight transport services. of customers in other States. electricity fees in 2005–06, VicTrack has two broad categories • Completed multiple gas and in comparison to 2004–05. of activity: electricity emergency exercises to Stakeholder value assist with preparedness for major • custodial: fulfilling the organisation’s events. • Finalise the Non-principal obligations as an owner of Transmission System (NPTS) FRC. infrastructure and rolling stock • Operated Victoria’s gas This will enable VENCorp systems transmission network reliably and • business: seeking to add value to to provide FRC services to newly- cost effectively throughout 2004–05. its assets and generate returns to connected regional gas distribution enable greater investment in, and networks (even those that are not Priorities for 2005–06 improvements to, Victoria’s public supplied from the VENCorp- transport system. Our people operated NPTS) • Implement a new Performance • Provide further stakeholder Key achievements in 2004–05 Management System, developed information days in 2005–06, • Continued to project manage level by VENCorp during 2004–05. following the success of two and pedestrian crossing upgrades information days held for the energy • Undertake an Employee Opinion to improve public safety. industry during 2004–05. Survey. These surveys are • Continued to pursue a number of conducted every two years to gain Reliable Systems value-adding initiatives including feedback across VENCorp on commercial leases, air space organisational strengths and • Release a report providing a 25-year developments and improvements weaknesses. vision for Victoria’s core energy to outdoor advertising panels. transmission infrastructure – Vision A highlight was the completion of Sound commercial management 2030 – prepared over the past the Elsternwick precinct residential 12 months. • Return surpluses in our statutory development and station gas (including gas FRC and • Finalise a tender to enable improvements. wholesale gas) and electricity construction to began on a 1000 • Purchased the EM100 Track functions to participants through MVA 500/220 kV transformer at Recorder Car, which will provide reduced fees and charges, Rowville Terminal Station. information on rail track condition. including: To learn more, visit: www.vencorp.com.au
213 DOI Annual Report 2004–05 • Continued the program to preserve • Continuing the program to upgrade • Preparation of an initial study Victoria’s rail heritage, with restoration railway infrastructure and passenger into the feasibility of introducing works completed at Gordon and facilities, including funding works on a dynamic under keel clearance Kyneton railway stations. the concourse at Flinders Street (DUKC) system for Geelong. The Station. economic feasibility of introducing • Formalised a landmark partnership the DUKC is being evaluated. with Landcare Australia for the • Proposed redevelopment of freight Grassroots program, focusing yards at Leongatha into a retail • Increase of 10 cm in the allowable on restoration of Victoria’s native facility for the benefit of the draft of Geelong Channels from grasslands. community. 11.6 metres to 11.7 metres.
• Developed and managed third-party Involvement in various whole-of- • Introduction of new technologies common-user freight terminals government projects leading up to to the Port of Geelong, including within the Dynon precinct to the 2006 Commonwealth Games in Automated Identification Systems facilitate competition in the rail Melbourne. and Ships Management System. freight industry and provide facilities • Completion of a whole-of-port Safety for new entrants to the market. Victorian Regional Channels and Environmental Management • Tested and commissioned a Authority Plan in association with other port regional fibre-optic service to The Victorian Regional Channels operators in Geelong. improve connectivity for regional Authority (VRCA) began operations • Completion of Port Emergency Plan Victorians, particularly in the on 1 April 2004 on behalf of the Victorian in association with other port Gippsland area. Government. It was established to operations in Geelong. • Continued to facilitate transport manage the commercial navigation • Coordinating study into the projects and initiatives through the of the channels in Geelong port waters economic contribution of the Port management of land acquisition and to manage the channel licences for of Geelong to the region and State. and planning processes. the Port of Hastings and Port of Portland. • Trial of new Global Positioning • Implemented a new system to In providing these services, the VRCA, System (GPS) controlled navigation manage technical infrastructure its board and management team strives lights in Geelong Channels. drawings and provide online access to establish and maintain strong links for stakeholders and VicTrack’s with port management and shipping • Completion during the year of an customers. industries, other port users, local and extensive hydrographic survey of state governments and the public. Geelong port waters using multi- Priorities for 2005–06 beam technology. Key achievements in 2004–05 • Continued commercialisation of • Completed full condition audit of • Major services provided under spare capacity within VicTrack’s all beacons in Geelong channels the channel services contract with telecommunications network, and effected urgent repairs where the POMC were excised from the including finalising the agreement appropriate. with the Central Gippsland Institute contract and transferred to the direct of TAFE to provide Victorian management of the VRCA during the • VRCA ready to proceed with educational institutions with access year. The contract is to be formally new Australian equivalents to to VicTrack’s communications terminated in early 2005–06. International Financial Reporting Standards (IFRS) accounting backbone. • Start of initial planning stages of methods from 1 July 2005 . • Continuing the program to restore a project to upgrade and replace heritage stations and rail facilities, navigation beacons and lights in with major restoration works the Geelong Channels. planned at Maryborough’s historic railway station.
Statutory Authorities 214 Priorities for 2005–06 • respecting the environment • Any functions conferred on the Authority by any other Act. • Continuation of the project to • design excellence upgrade and replace beacons The functions of the Authority are to • community wellbeing and lights in Geelong Channels. be carried out on a commercial basis. • housing affordability • Smooth transition to integrate new Key achievements in 2004–05 international accounting standards • commercial success.
• Evaluate the economic and Environment and urban design VicUrban Functions environmental considerations • The Australia Award for Urban effecting possible channel The functions of VicUrban as set out Design Excellence was awarded to improvements and introduction in the Victorian Urban Development ‘Melbourne Docklands’ an Innovative of DUKC. Authority Act 2003 are: Strategy for Designed Development’. The Australia Award is the nation’s • Integrate new technologies into • to purchase, consolidate, take on, most prestigious urban design prize operating procedures. transfer or otherwise acquire land in metropolitan and regional areas for and is jointly hosted by the Australia • Involve other port users, operators development for urban purposes Institute of Landscape Architects, and stakeholders in advancing Royal Australian Institute of Architects • to carry out development of land education and community support and Planning Institute of Australia. for the Port of Geelong. alone or in partnership or to enter into arrangements or agreements • An integrated water-sensitive urban • Ongoing evaluation of other means for the development of land design scheme for Victoria Harbour of improving efficiency in the use precinct and Docklands Park was • to develop land in Victoria for of the Geelong Channels. commissioned. Huge underground residential and other urban • Evaluate and acquire a vessel tanks beneath Docklands Park store purposes to provide a competitive for port and emergency operation rainwater and then urban swales market for land in Victoria requirements. (wetlands) clean the rainwater prior • to promote best practice in urban to storage and use to irrigate the For more information, please visit: and community design and park. This system provides 80 per www.vicchannels.vic.gov.au development, having regard to links cent of the park’s water needs and to transport services and innovations saves 10 million litres of potable Victorian Urban Development in sustainable development water every year. Authority • to assist with the implementation • Announced the five winners of the VicUrban is the Victorian Government’s of government urban development Affordable Home Design lead sustainable urban development policies and strategies Competition. The competition set agency. It’s mission is to create architects the task of designing a • to contribute to improvements in sustainable urban developments in two or three bedroom home of 120m2 housing affordability in Victoria regional and metropolitan Victoria, with a six star energy rating to be consistent with government initiatives • to provide consultancy services in constructed for the retail price of and financial success. relation to the development of land $120,000. More than 100 entries whether within or outside Victoria were received and VicUrban building Core principle or outside Australia industry partners, Burbank and Sustainability is the core principle Devine, have agreed to construct • to undertake and manage declared underlying VicUrban’s development one each of the five winning designs. projects on behalf of the Crown approach. VicUrban uses the term holistically to include: • any other functions conferred on the Authority by this Act
• the functions conferred on the Authority by the Docklands Act 1991
215 DOI Annual Report 2004–05 Community and affordability Urban communities Melbourne Docklands • The Lynbrook Sports and Social • Achieved an additional 53 sale lots • Podium Building in Comtechport Club was formed and now at Roxburgh Park, well beyond the began construction. coordinates milo-cricket and targeted nine. • Waterfront City’s first stage began Vic-Kick for Lynbrook’s children. • Stage 1 and 2 civil construction works and is completion planned for the • Celebrated the opening of the began at Metro Village, Dandenong. Volvo Ocean Yacht Race Melbourne Lynbrook Primary School. stopover in January 2006. • Construction of Stages 3 and 4 of • Casey Council confirmed its Lancaster Gate completed on budget • The first stage of Kangan Batman commitment to building a and successfully pre-released with TAFE began. community centre and pre-school the majority of lots sold. • Docklands Park play and amenities, at Lynbrook estate. • Jacksons Hill won the Hume the relocation and landscaping of • Completion of the Bridgewater Lake Business Award for Environmental the gas regulator station and the Retirement Village and Nursing Landscaping. first three stages of Grand Plaza Home and Community Centre at have been completed. • Completion of construction for stages Roxburgh Park. 14, 15 and 16 of Jacksons Hill. • Ninety per cent of integrated art • Opening of the fourth primary has been commissioned, including • Achieved 33 residential sales at school at Roxburgh Park. Blowhole, the second stage of Shoal Aurora with total revenue in excess Fly By and Configuration. • Melbourne Docklands welcomed of $3.3 million. more than five million visitors • Completed design of Community • The Cairnlea Drive/Western Highway throughout the year. Key events Hub public space, bocce courts, link opened. included the Summer Boat Show, park, landscape and significant Christmas in July, Dockfest and • Stage 1 of Cairnlea Park completed. public sculpture Configuration. Navy Week. • Development Agreement for Point • Development of a model and • Supported Docklands local Cook Town Centre at the Boardwalk feasibility for delivery of an community groups, Docklands executed. integrated child-care and early Chamber of Commerce (50+ learning centre, and for a centre • Display village and Wetland Park at financial members), Lion’s Club, for positive ageing and wellbeing, Tenterfield opened. Playgroup, Yarra’s Edge Chat including health, residential and Group, running and walking groups • Completion of Stage 1 and the Village community support services for and CAE classes in the Hub. Square at Tower Hill, Swan Hill. older persons in the inner city.
• Completed a memorandum of • Design documentation started on • Commitment to an Ecologically understanding with the Office of Office of Housing partnership Sustainable Development (ESD) Housing for future joint participation project, Parkside Estate; and City ‘Award of Merit’ for all projects in projects. of Greater Shepparton partnership began. project, Parkside Gardens. • National Australia Bank completed • A commendation was received in its move to its campus-style the UDIA Awards for Affordable workplace in Victoria Harbour. Development for Home Street • Medibank Private, Federal Bureau project in Bayswater North. of Meteorology and VicUrban • An award of merit was given by the moved into 700 Collins Street. Stormwater Industry Association for • Telstra moved into the Innovation the Bonbeach project master plan. Building at Comtechport.
Statutory Authorities 216 New business • Start construction on Stage 1 • Successful start of a driver Establish a partnership with Melbourne of Parkside Estate and Parkside recruitment program. Gardens in Shepparton. Water for the development of the • Completion of safety climate staff 200 hectare Werribee Field site. This • Open Discovery Sales Centre for survey. will be a leading example of sustainable Metro Village, Dandenong. urban development that will include the Priorities for 2005–06 use of recycled water from the Western • Secure partners for the delivery of • Completion and preparation for Treatment Plant. The project will also an integrated child-care and early the introduction of the new service provide partnership opportunities for learning centre or for a centre for plan and timetable, including RFR private-sector developers. Initial positive ageing and wellbeing in project services. planning and community consultation Melbourne Docklands. has begun. For more information, please visit; • Introduction of the new VLocity www.vicurban.com.au trains. Priorities for 2005–06 • Preparing for the opening and • VicUrban will be an exemplar of a V/Line Passenger Corporation operation of Southern Cross Station. creative, sustainable organisation V/Line was established in 2003 under • Support for the development and and projects. Sustainability is the the Rail Corporations Act 1996. Its sole testing of the NTS for Victorian core development principle function is to act as a holding company public transport. underlying VicUrban. To achieve for V/Line Passenger Pty Ltd this, VicUrban will implement our • Regional rail and coach services to Sustainability Charter on all VicUrban V/Line has a franchise agreement with support the Commonwealth Games projects; have the Sustainability the Director of Public Transport for the in March 2006. Charter endorsed as Victorian provision of passenger rail and coach • Completion of key V/Line asset industry standard; and ensure all services to regional Victoria. assessments, including rolling stock projects score a minimum of 300 and station standards studies. points on the Sustainability Charter Key achievements in 2004–05 at each phase of development. • Return of the Shepparton and • Development of triple-bottom-line measures following the completion • Completion of Roxburgh Park – Warrnambool services to V/Line. of a V/Line sustainability study. one of VicUrban’s major residential • Reopening of the Ararat rail line estates. passenger service. For more information, please visit: www.vline.com.au • Start construction of housing at • Completion of a marketing and benchmark sustainable urban customer development study to development, Aurora. gain a better understanding of • Construction of the Aurora Discovery customer needs. Pavilion and Display Village. • Significant progress in the • Completion of Stormwater Recycling development of a new service plan and Irrigation Reuse System at and timetable for 2006, including Cairnlea. comprehensive customer and stakeholder consultation. • Finalise master planning and feasibility for Officer. • Managed replacement services during RFR project line closures • Complete development of and service disruptions related to Jacksons Park. the redevelopment of Spencer Street Station.
217 DOI Annual Report 2004–05 DOI Whistleblowers Protection Policy
Whistleblowers Protection Act 2001 – Procedures January 2002
Contents
1. DOI philosophy 220
2. Purpose of these procedures 220
3. Objects of the Act 220
4. Definitions of key terms 220 4.1 Improper conduct 220
4.2 Corrupt conduct 220
4.3 Detrimental action 220
5. The reporting system 221 5.1 Contact persons within DOI 221
5.2 Alternative contact persons 221
5.3 Making disclosures about persons other than DOI employees 221
6. Roles and responsibilities 221 6.1 All DOI employees and officers 221
6.2 Protected disclosure coordinator 221
6.3 Investigator 222
6.5 Welfare manager 222
7. Confidentiality 222
8. Collating and publishing statistics 223
9. Receiving and assessing disclosures 223 9.1 Has the disclosure been made in accordance with Part 2 of the Act? 223
9.2 Has the disclosure been made to the appropriate person? 223
9.3 Does the disclosure contain the essential elements of a protected disclosure? 223
9.4 Is the disclosure a public interest disclosure? 223
DOI Whistleblowers Protection Policy 218 10. Investigations 224 10.1 Introduction 224
10.2 Terms of reference 224
10.3 Investigation plan 224
10.4 Natural justice 224
10.5 Conduct of the investigation 225
10.6 Referral of an investigation to the Ombudsman 225
10.7 Reporting requirements 225
11. Action taken after an investigation 225 11.1 Investigator’s final report 225
11.2 Action to be taken 226
12. Managing the welfare of the whistleblower 226 12.1 Commitment to protecting whistleblowers 226
12.2 Keeping the whistleblower informed 226
12.3 Occurrence of detrimental action 227
12.4 Whistleblowers implicated in improper conduct 227
13. Management of the person against whom a disclosure has been made 227
14. Criminal offences 228
15. Review 228
219 DOI Annual Report 2004–05 1. DOI philosophy 3. Objects of the act 4.2 Corrupt conduct DOI is committed to the aims and The Whistleblowers Protection Act 2001 Corrupt conduct means: objectives of the Whistleblowers facilitates and encourages the making • conduct of any person (whether or not Protection Act. It does not tolerate of disclosures of improper conduct by a public official) that adversely affects improper conduct by its staff, nor the public officers and public bodies. The the honest performance of a public taking of reprisals against those who Act provides protection to whistleblowers officer’s or public body’s functions come forward to disclose such conduct. who make disclosures in accordance with the Act, and establishes a system for • the performance of a public officer’s DOI recognises the value of the matters disclosed to be investigated functions dishonestly or with transparency and accountability in and rectifying action to be taken. inappropriate partiality its administrative and management practices and supports the making • conduct of a public officer, former of disclosures which reveal corrupt 4. Definitions of key terms public officer or a public body that conduct, conduct involving a substantial There are three key concepts in the amounts to a breach of public trust mismanagement of public resources reporting system. These are; • conduct by a public officer, former or conduct involving a substantial risk • improper conduct public officer or a public body that to public health and safety or the amounts to the misuse of environment. • corrupt conduct information or material acquired in DOI will take all reasonable steps • detrimental action. the course of the performance of to protect people who make such their official functions, or disclosures from any detrimental 4.1 Improper conduct • A conspiracy or attempt to engage action in reprisal for the making of A disclosure may be made about in the above conduct. the disclosure. It will also afford natural improper conduct by a public body or Examples of corrupt conduct justice to the person who is the subject public official. Improper conduct means of the disclosure. conduct that is corrupt, a substantial • A public officer takes a bribe or mismanagement of public resources, or receives a payment other than his 2. Purpose of these procedures conduct involving substantial risk to public or her wages or salary in exchange health or safety or to the environment. These procedures establish a system for the discharge of a public duty. The conduct must be serious enough for reporting disclosures of improper • A public officer favours unmeritorious to constitute, if proved, a criminal offence conduct or detrimental action by DOI or applications for positions or permits or reasonable grounds for dismissal. its employees. The system enables such by friends and relatives. disclosures to be made to the Protec Examples of improper conduct • A public officer sells confidential ted Disclosure Coordinator. Disclosures • To avoid closure of a town’s only information. may be made by any DOI staff member, industry, an environmental health contractor or by members of the public. officer ignores or conceals evidence 4.3 Detrimental action These procedures are designed to of illegal dumping of waste. The Act makes it an offence for a person complement normal communication • An agricultural officer delays or to take detrimental action against a channels between managers and staff. declines imposing quarantine to person in reprisal for a protected Staff are encouraged to continue to raise allow a financially distressed farmer disclosure. Detrimental action includes: appropriate matters at any time with their to sell diseased stock. manager. As an alternative, staff may • action causing injury, loss or damage make a disclosure of improper conduct • A building inspector tolerates poor • intimidation or harassment or detrimental action, under the Act, in practices and structural defects in accordance with these procedures. the work of a leading local builder. • discrimination, disadvantage or adverse treatment in relation to a person’s employment, career, profession, trade or business, including the taking of disciplinary action.
DOI Whistleblowers Protection Policy 220 Examples of detrimental action Person who is the subject Person/body to whom • A public body refuses a deserved of the disclosure the disclosure must be made promotion of a person who makes a disclosure. Employee of a public body That public body or the Ombudsman other than DOI • A public body demotes, transfers, Member of Parliament Speaker of the Legislative Assembly isolates in the workplace or changes (Legislative Assembly) the duties of a whistleblower due to Member of Parliament President of the Legislative Council the making of a disclosure. (Legislative Council) • A person threatens, abuses or Councillor The Ombudsman carries out other forms of Chief Commissioner of Police The Ombudsman or Deputy Ombudsman harassment directly or indirectly against the whistleblower, his or her Member of the police force The Ombudsman, Deputy Ombudsman family or friends. or Chief Commissioner of Police
• A public body discriminates against the whistleblower or his or her 5.2 Alternative contact All employees of DOI have an important family and associates in A disclosure about improper conduct role to play in supporting those who subsequent applications for jobs, or detrimental action by DOI or its have made a legitimate disclosure. permits or tenders. employees, may also be made directly They must refrain from any activity to the Ombudsman: that is, or could be perceived to be, victimisation or harassment of a person 5. The reporting system The Ombudsman Victoria who makes a disclosure. Furthermore, 5.1 Contact person within DOI Level 22, 459 Collins Street they should protect and maintain the Melbourne Victoria 3000 confidentiality of a person they know Disclosures of improper conduct or Internet: www.ombudsman.vic.gov.au or suspect to have made a disclosure. detrimental action by DOI or its Email: [email protected] employees, may be made to the Telephone: (03) 9613 6222 6.2 Protected Disclosure following: Toll-free: 1800 806 314 Coordinator Protected Disclosures Coordinator The Protected Disclosure Coordinator will: Department of Infrastructure 5.3 Making a disclosure about Level 14, 80 Collins Street persons other than DOI employees • be a contact point for general Melbourne 3000 The table here sets out where a DOI advice about the operation of the Telephone: (03) 9655 8776 employee or other person, may make Act for any person wishing to make a disclosure about persons other than a disclosure about improper All correspondence, phone calls employees of DOI. conduct or detrimental action and emails from internal or external whistleblowers must be referred to • receive all phone calls, emails and the Protected Disclosure Coordinator. 6. Roles and responsibilities letters from members of the public or employees seeking to make a Where a person is contemplating 6.1 All DOI employees and officers disclosure making a disclosure and is concerned All DOI employees and officers about approaching the Protected • make arrangements for a disclosure are encouraged to report known or Disclosure Coordinator he or she to be made privately and discreetly suspected incidences of improper can call the Protected Disclosure and, if necessary, away from the conduct or detrimental action in Coordinator and request a meeting workplace accordance with these procedures. in a discreet location away from the workplace.
221 DOI Annual Report 2004–05 • receive any disclosure made orally 6.3 Investigator 7. Confidentiality or in writing (from internal and The investigator will be responsible f DOI will take all reasonable steps external whistleblowers) or carrying out an internal investigation to protect the identity of the • commit to writing any disclosure into a disclosure that has been made whistleblower. Maintaining made orally or where the Ombudsman has referred a confidentiality is crucial in ensuring matter to the public body. An investigator reprisals are not made against a • impartially assess the allegation and may be a person appointed from within whistleblower. determine whether it is a disclosure DOI or a consultant engaged by the made in accordance with Part 2 of The Act requires any person who Protected Disclosures Coordinator for the Act (that is, ‘a protected receives information due to the handling that purpose. disclosure’) or investigation of a protected disclosure, not to disclose that • impartially assess each disclosure 6.4 Welfare manager information except in certain limited to determine whether it is a public The welfare manager is responsible circumstances. Disclosure of interest disclosure for looking after the general welfare information in breach of section 22 of the whistleblower. The welfare • take all necessary steps to ensure constitutes an offence that is manager will: the identity of the whistleblower and punishable by a maximum fine of 60 the identity of the person who is the • examine the immediate welfare and penalty units ($6000) or six months subject of the disclosure are kept protection needs of a whistleblower imprisonment or both. confidential who has made a disclosure and The circumstances in which a person seek to foster a supportive work • refer all public interest disclosures may disclose information obtained environment to the Ombudsman about a protected disclosure include: • advise the whistleblower of the • be responsible for carrying out, or • where exercising the functions of legislative and administrative appointing an investigator to carry the public body under the Act protections available to him or her out, an investigation referred to the • when making a report or public body by the Ombudsman • listen and respond to any concerns recommendation under the Act of harassment, intimidation or • be responsible for overseeing and victimisation in reprisal for making • when publishing statistics in the coordinating an investigation where disclosure annual report of a public body an investigator has been appointed • ensure the expectations of the • in criminal proceedings for certain • appoint a welfare manager to whistleblower are realistic. offences in the Act. support the whistleblower and to protect him or her from any reprisals The Welfare Manager will be appointed However, the Act prohibits the inclusion by the Protected Disclosure Coordinator of particulars in any report or • advise the whistleblower of the on a case by case basis. DOI’s recommendation that is likely to lead progress of an investigation into Employee Assistance Program may to the identification of the whistleblower. the disclosed matter; also be utilised to appoint a suitably The Act also prohibits the identification • establish and manage a confidential qualified Welfare Manager independent of the person who is the subject of the filing system to DOI. disclosure in any particulars included in an annual report. • collate and publish statistics on disclosures made The Protected Disclosure Coordinator will ensure all files, whether paper or • liaise with the Secretary of DOI. electronic, are kept in a secure room and can only be accessed as necessary by the investigator or welfare manager
DOI Whistleblowers Protection Policy 222 (in relation to welfare matters). All • the number and types of disclosures 9.3 Does the disclosure contain the printed material will be kept in files that referred by the public body to the essential elements of a protected are clearly marked as a Whistleblower Ombudsman for investigation disclosure? Protection Act matter, and warn of the • the number and types of To be a protected disclosure, a disclosure criminal penalties that apply to any investigations taken over from the must satisfy the following criteria. unauthorised divulging information public body by the Ombudsman concerning a protected disclosure. • Did a natural person (that is, an All electronic files will be produced • the number of requests made by individual person rather than a and stored on a stand-alone computer a whistleblower to the Ombudsman corporation) make the disclosure? and be given password protection. to take over an investigation by the • Does the disclosure relate to Backup files will be kept on floppy disc. public body conduct of a public body or public All materials relevant to an investigation, • the number and types of disclosed officer acting in their official such as tapes from interviews, will also matters that the public body has capacity? be stored securely with the declined to investigate whistleblower files. • Is the alleged conduct either • the number and types of disclosed improper conduct or detrimental Documents relevant to a whistleblower matters that were substantiated action taken against a person in matter must not be emailed and all upon investigation and the action reprisal for making a protected phone calls and meetings must be taken on completion of the disclosure? conducted in private. investigation • Does the person making a • any recommendations made by disclosure have reasonable grounds 8. Collating and publishing the Ombudsman that relate to the for believing the alleged conduct statistics public body. has occurred? The Protected Disclosure Coordinator The Protected Disclosure Coordinator will establish a secure register to record 9. Receiving and assessing will determine whether the disclosure is the information required to be published disclosures a protected disclosure and whether the in the annual report, and to generally disclosure is a public interest disclosure. keep account of the status of 9.1 Has the disclosure been made in whistleblower disclosures. The register accordance with Part 2 of the Act? Where a disclosure is assessed not to will be confidential and will not record be a protected disclosure, the matter Where a disclosure has been received, any information that may identify the does not need to be dealt with under the Protected Disclosure Coordinator will whistleblower. the Act. The Protected Disclosure assess whether the disclosure has been Coordinator will decide how the matter The register will contain the following made in accordance with Part 2 of the Act should be responded to. information: and is, therefore, a protected disclosure. • the number and types of 9.4 Is the disclosure a public 9.2 Has the disclosure been made disclosures made to public bodies interest disclosure? to the appropriate person? during the year Where a disclosure has been received For the disclosure to be responded to • the number of disclosures referred and determined to be a protected by DOI, it must concern an employee or to the Ombudsman for disclosure, the Protected Disclosure officer of DOI. If the disclosure concerns determination as to whether they Coordinator will determine whether the an employee, officer or member of are public interest disclosures disclosure amounts to a public interest another public body, the person who disclosure. This assessment will be has made the disclosure must be • the number and types of disclosed made within 45 days of the receipt of advised of the correct person or body to matters referred to the public body the disclosure. by the Ombudsman for investigation whom the disclosure should be directed. (See the table in 5.2). If the disclosure has been made anonymously, it should be referred to the Ombudsman.
223 DOI Annual Report 2004–05 In reaching a conclusion as to whether 10. Investigations 10.3 Investigation plan a protected disclosure is a public The investigator will prepare an 10.1 Introduction interest disclosure, the protected investigation plan for approval by t disclosure coordinator will consider Where the Ombudsman refers a he protected disclosure coordinator. whether the disclosure shows, or tends protected disclosure to DOI for The plan will list the issues to be to show, that the public officer to whom investigation, the protected disclosure substantiated and describe the avenue the disclosure relates: coordinator will appoint an investigator of inquiry. It will address the following to carry out the investigation. • has engaged, is engaging or issues: proposes to engage in improper The objectives of an investigation will • What is being alleged? conduct in his or her capacity as a be to: public officer, or • What are the possible findings or • collate information relating to the offences? • has taken, is taking or proposes allegation as quickly as possible. to take detrimental action in reprisal This may involve taking steps to • What are the facts in issue? for the making of the protected protect or preserve documents, • How is the inquiry to be conducted? disclosure. materials and equipment • What resources are required? If the protected disclosure coordinator • consider the information collected concludes that the disclosure amounts and to draw conclusions objectively At the commencement of the to a public interest disclosure, he or and impartially investigation, the whistleblower should she will: be: • maintain procedural fairness in the 1. notify the person who made the treatment of witnesses and the person • notified by the investigator that he or disclosure of that conclusion who is the subject of the disclosure she has been appointed to conduct the investigation 2. refer the disclosure to the • make recommendations arising from Ombudsman for formal determination the conclusions drawn concerning • asked to clarify any matters as to whether it is indeed a public remedial or other appropriate action. • provide any additional material he or interest disclosure. she might have. 10.2 Terms of reference If the protected disclosure coordinator The investigator will be sensitive to the Before commencing an investigation, concludes that the disclosure is not a whistleblower’s possible fear of reprisals the protected disclosure coordinator public interest disclosure, he or she will: and will be aware of the statutory will draw up terms of reference and protections provided to the 1. notify the person who made the obtain authorisation for those terms whistleblower. disclosure of that conclusion by the chief executive officer. The terms of reference will set a date by which the 2. advise that person that he or she 10.4 Natural justice may request the public body to refer investigation report is to be concluded, The principles of natural justice will be the disclosure to the Ombudsman for and will describe the resources available followed in any investigation of a public a formal determination as to whether to the investigator to complete the interest disclosure. The principles of the disclosure is a public interest investigation within the time set. The natural justice concern procedural disclosure, and that this request must protected disclosure coordinator may fairness and ensure a fair decision is be made within 28 days of the approve, if reasonable, an extension reached by an objective decision maker. notification. of time requested by the investigator. Maintaining procedural fairness protects The terms of reference will require the the rights of individuals and enhances In either case, the protected disclosure investigator to make regular reports to public confidence in the process. coordinator will make the notification the protected disclosure coordinator and the referral within 14 days of the who, in turn, is to keep the Ombudsman conclusion being reached by the public informed of general progress. body. Notification to the whistleblower is not necessary where the disclosure has been made anonymously.
DOI Whistleblowers Protection Policy 224 DOI will have regard to the following 10.5 Conduct of the investigation Where the Ombudsman or the issues in ensuring procedural fairness: The investigator will make whistleblower requests information about the progress of an investigation, • the person who is the subject of contemporaneous notes of all that information will be provided within the disclosure is entitled to know discussions and phone calls, and all 28 days of the date of the request. the allegations made against him interviews with witnesses will be taped. or her and must be given the right All information gathered in an to respond. (This does not mean the investigation will be stored securely. 11. Action taken after an person must be advised of the Interviews will be conducted in private investigation allegation as soon as the disclosure and the investigator will take all is received or the investigation has reasonable steps to protect the identity 11.1 Investigator’s final report commenced) of the whistleblower. Where disclosure At the conclusion of the investigation, of the identity of the whistleblower the investigator will submit a written • if the investigator is contemplating cannot be avoided, due to the nature report of his or her findings to the making a report adverse to the of the allegations, the investigator will protected disclosure coordinator. The interests of any person, that person warn the whistleblower and his or her report will contain: should be given the opportunity to welfare manager of this probability. put forward further material that may • the allegation/s influence the outcome of the report It is in the discretion of the investigator • an account of all relevant and that person’s defence should to allow any witness to have legal or information received and, if the be fairly set out in the report other representation or support during investigator has rejected evidence an interview. If a witness has a special • all relevant parties to a matter as being unreliable, the reasons need for legal representation or support, should be heard and all for this opinion being formed permission should be granted. submissions should be considered • the conclusions reached and the • a decision should not be made until 10.6 Referral of an investigation to basis for them all reasonable inquiries have been the Ombudsman • any recommendations arising from made; The protected disclosure coordinator will the conclusions. make a decision regarding the referral • the investigator or any decision of an investigation to the Ombudsman If the investigator has found that the maker should not have a personal where, on the advice of the investigator: conduct disclosed by the whistleblower or direct interest in the matter being has occurred, recommendations made investigated • the investigation is being obstructed by the investigator will include: by, for example, the non- • all proceedings must be carried out cooperation of key witnesses, or • the steps that need to be taken fairly and without bias. Care should by DOI to prevent the conduct from be taken to exclude perceived bias • the investigation has revealed continuing or occurring in the future from the process conduct that may constitute a criminal offence. • any action that should be taken by • the investigator must be impartial DOI to remedy any harm or loss in assessing the credibility of the 10.7 Reporting requirements arising from the conduct. This whistleblowers and any witnesses. action may include bringing Where appropriate, conclusions as The protected disclosure coordinator disciplinary proceedings against the to credibility should be included in will ensure the whistleblower is kept person responsible for the conduct, the investigation report. regularly informed concerning the and referring the matter to an handling of a protected disclosure and appropriate authority for further an investigation. consideration. The protected disclosure coordinator will report to the Ombudsman about the progress of an investigation.
225 DOI Annual Report 2004–05 The report will be accompanied by: 12. Managing the welfare of the All employees will be advised that it whistleblower is an offence for a person to take • the transcript or other record of any detrimental action in reprisal for a oral evidence taken, including tape 12.1 Commitment to protecting protected disclosure. The maximum recordings whistleblowers penalty is a fine of 240 penalty units • all documents, statements or other DOI is committed to the protection ($24,000) or two years imprisonment exhibits received by the officer and of genuine whistleblowers against or both. The taking of detrimental action accepted as evidence during the detrimental action taken in reprisal for in breach of this provision can also be course of the investigation. the making of protected disclosures. grounds for making a disclosure under The protected disclosure coordinator is the Act and can result in an Where the investigator’s report is to responsible for ensuring whistleblowers investigation. include an adverse comment against are protected from direct and indirect any person, that person will be given Detrimental action includes: detrimental action, and that the culture the opportunity to respond and his or of the workplace is supportive of • causing injury, loss or damage her defence will be fairly included in protected disclosures being made. the report. • intimidation or harassment The protected disclosure coordinator The report will not disclose particulars • discrimination, disadvantage or will appoint a welfare manager to all likely to lead to the identification of the adverse treatment in relation to a whistleblowers who have made a whistleblower. person’s employ-ment, career, protected disclosure. The welfare profession, trade or business manager will: 11.2 Action to be taken (including the taking of disciplinary If the Protected Disclosure Coordinator • examine the immediate welfare and action). is satisfied that the investigation has protection needs of a whistleblower found that the disclosed conduct has who has made a disclosure and, 12.2 Keeping the whistleblower occurred, he or she will recommend to where the whistleblower is an informed the Secretary to DOI the action that employee, seek to foster a The protected disclosure coordinator must be taken to prevent the conduct supportive work environment will ensure the whistleblower is kept from continuing or occurring in the informed of action taken in relation to • advise the whistleblower of the future. The protected disclosure his or her disclosure, and the time legislative and administrative coordinator may also recommend that frames that apply. The whistleblower protections available to him or her action be taken to remedy any harm will be informed of the objectives of or loss arising from the conduct. • listen and respond to any concerns an investigation, the findings of an of harassment, intimidation or investigation, and the steps taken by The protected disclosure coordinator victimisation in reprisal for making DOI to address any improper conduct will provide a written report to the disclosure that has been found to have occurred. DOI Ministers, the Ombudsman and The whistleblower will be given reasons the whistleblower setting out the • keep a contemporaneous record of for decisions made by DOI in relation findings of the investigation and any all aspects of the case management to a protected disclosure. All remedial steps taken. of the whistleblower including all contact and follow-up action communication with the whistleblower Where the investigation concludes that will be in plain English. the disclosed conduct did not occur, • ensure the expectations of the the protected disclosure coordinator will whistleblower are realistic. report these findings to the Ombudsman and to the whistleblower.
DOI Whistleblowers Protection Policy 226 12.3 Occurrence of detrimental 12.4 Whistleblowers implicated in • there are good and sufficient action improper conduct grounds that would fully justify If a whistleblower reports an incident If a person who makes a disclosure action against any non- of harassment, discrimination or adverse is implicated in misconduct, DOI will whistleblower in the same treatment that would amount to handle the disclosure and protect the circumstances detrimental action taken in reprisal for whistleblower from reprisals in • there are good and sufficient the making of the disclosure, the welfare accordance with the Act, the grounds that justify exercising any manager will: Ombudsman’s guidelines and these discretion to institute disciplinary procedures. DOI acknow-ledges that the • record details of the incident or other action. act of whistle blowing should not shield The Protected Disclosure Coordinator • advise the whistleblower of his or whistleblowers from the reasonable will thoroughly document the process her rights under the Act consequences flowing from any including recording the reasons why involvement in improper conduct. • advise the Protected Disclosure the disciplinary or other action is being Section 17 of the Act specifically Coordinator or the Secretary to taken, and the reasons why the action provides that a person’s liability for the DOI of the detrimental action. is not in retribution for the making of his or her own conduct is not affected the disclosure. The protected The taking of detrimental action in by the person’s disclosure of that disclosure coordinator will clearly reprisal for the making of a disclosure conduct under the Act. However, in advise the whistleblower of the can be an offence against the Act as some circumstances, an admission proposed action to be taken, and of well as grounds for making a further may be a mitigating factor when any mitigating factors that have been disclosure. Where such detrimental considering disciplinary or other action. action is reported, the protected taken into account. The Secretary will make the final disclosure coordinator will assess the decision on the advice of the Protected report as a new disclosure under the 13. Management of the person Disclosure Coordinator as to whet Act. Where the protected disclosure against whom a disclosure has her disciplinary or other action will coordinator is satisfied that the been made be taken against a whistleblower. disclosure is a public interest disclosure, Where disciplinary or other action DOI recognises that employees against he or she will refer it to the Ombudsman. relates to conduct that is the subject whom disclosures are made must also If the Ombudsman subsequently of the whistle-blower’s disclosure, the be supported during the handling and determines the matter to be a public disciplinary or other action will only investigation of disclosures. DOI will interest disclosure, the Ombudsman be taken after the disclosed matter take all reasonable steps to ensure the may investigate the matter or refer it has been appropriately dealt with. confidentiality of the person who is the to another body for investigation as subject of the disclosure during the outlined in the Act. In all cases where disciplinary or assessment and investigation process. other action is being contemplated, Where investigations do not substantiate the Secretary to the DOI must be disclosures, the fact that the satisfied that it has been clearly investigation has been carried out, demonstrated that: the results of the investigation, and the • the intention to proceed with identity of the person who is the subject disciplinary action is not causally of the disclosure will remain confidential. connected to the making of the disclosure (as opposed to the content of the disclosure or other available information)
227 DOI Annual Report 2004–05 The protected disclosure coordinator 14. Criminal offences 15. Review will ensure the person who is the subject DOI will ensure staff appointed to handle These procedures will be reviewed of any disclosure investigated by or on protected disclosures and all other annually to ensure they meet the behalf of a public body is: employees are aware of the following objectives of the Act and accord • informed as to the substance of offences created by the Act: with the Ombudsman’s guidelines. the allegations 1. It is an offence for a person to take • given the opportunity to answer the detrimental action against a person allegations before a final decision in reprisal for a protected disclosure is made being made. The Act provides a maximum penalty of a fine of 240 • informed as to the substance of penalty units ($24,000) or two years any adverse comment that may be imprisonment or both. included in any report arising from the investigation, and has 2. It is an offence for a person to divulge information obtained as a • his or her defence set out fairly result of the handling or investigation in any report. of a protected disclosure without If the allegations in a disclosure have legislative authority. The Act provides been investigated, and the person who a maximum penalty of 60 penalty is the subject of the disclosure is aware units ($6,000) or six months of the allegations or the fact of the imprisonment or both. investigation, the protected disclosure 3. It is an offence for a person to coordinator will formally advise the person obstruct the Ombudsman in who is the subject of the disclosure of the performing his responsibilities outcome of the investigation. under the Act. The Act provides DOI will give its full support to a person a maximum penalty of 240 penalty who is the subject of a disclosure where units ($24,000) or two years the allegations contained in a disclosure imprisonment or both. are clearly wrong or unsubstantiated. 4. It is an offence for a person to If the matter has been publicly disclosed, knowingly provide false information the Secretary of DOI will consider any under the Act with the intention that request by that person to issue a it be acted on as a disclosed matter. statement of support setting out that the The Act provides a maximum penalty allegations were clearly wrong or of 240 penalty units ($24,000) or two unsubstantiated. years imprisonment or both.
DOI Whistleblowers Protection Policy 228 DOI Contact Information
Department of Infrastructure 80 Collins Street, Melbourne Victoria, Australia 3000 Telephone: (03) 9655 6666 International: + 61 3 9655 6666 Facsimile: (03) 9655 6752 International: + 61 3 9655 6752 Internet: www.doi.vic.gov.au
Postal address PO Box 2797 Melbourne Victoria Australia 3001
229 DOI Annual Report 2004–05 DOI 2387/05