Department of Department Report 2009-10Annual

DOT5033/10 Department of Transport Annual Report 2009-10 www.transport.vic.gov.au Published by Department of Transport 121 Exhibition Street, 3000 www.transport.vic.gov.au © State of 2010 This publication is copyright. No part may be reproduced by any process except in accordance with the Provisions of the Copyright Act 1968. Authorised by the Victorian Government, 121 Exhibition Street, Melbourne ISSN 1441-4805 Printed by Impact Digital, Unit 3-4, 306 Albert St, Brunswick VIC 3056 If you would like to receive this publication in an accessible format, such as large print or audio please telephone Public Affairs Branch on 9655 6000. Printed on Impact 100% Recycled paper. Building a safer, fairer and greener transport system for all Victorians to create a more prosperous and connected community. Contents

Transmittal letter i

Abbreviations 1

Secretary’s foreword 3

Mission and values 5

Department of Transport 6

Transport portfolios 7

Organisational structure 9

2009-10 Annual Financial Report Chief Finance Officer’s Statement 13

Priority One: Integrate transport and land use planning 14

Priority Two: Support the Victorian economy with an effective and resilient transport system 20

Priority Three: Ensure safety for all transport users 32

Priority Four: Improve the sustainability of Victorian transport 40

Priority Five: Build a collaborative and effective organisation 44

Victorian Rail Crossing Safety Steering Committee Annual Report 50

Financial Statements 56

Appendices 134 Transmittal letter

16 September 2010

Tim Pallas MP Minister for Roads and Ports

The Hon. Martin Pakula MLC Minister for

121 Exhibition Street Melbourne VIC 3000

Dear Ministers

Annual Report 2009-10 In accordance with provisions of the Financial Management Act 1994, I have pleasure in submitting for presentation to Parliament the Department of Transport’s Annual Report for the year ended 30 June 2010. Yours sincerely

Jim Betts Secretary Department of Transport

i Abbreviations

AAS Australian Accounting Standards AASB Australian Accounting Standards Board AAWS Active Advance Warning Signs ABP Australian Builders Plate AIFRS Australian Equivalents to International Financial Reporting Standards ALCAM Australian Assessment Model ARC Australian Research Council ARTC Australian Rail Track ATC Australian Transport Council ATO Australian Taxation Office ATSB Australian Transport Safety Bureau AVM Automatic Vehicle Monitoring BP4 Budget Paper No. 4 Statement of Finances 2009-10 BRV Better Roads Victoria BSA Safety Act 2009 BusVic Bus Association Victoria CAD Central Activities District CBD Central Business District CCTV closed-circuit television CDP Channel Deepening Project CEO Chief Executive Officer CML CityLink Melbourne Ltd CNPL Civic-Nexus Pty Ltd COAG Council of Australian CO2 –e tonnes of Carbon Dioxide equivalent CPI Consumer Price Index CRRP COAG Road Reform Plan DAP Disability Access Plan DART Doncaster Area Rapid Transit DCCEE Department of Climate Change and Energy Efficiency DDA Disability Discrimination Act 1992

1 Department of Transport Annual Report 2009-10 DEECD Department of Education and LPG liquid petroleum gas SDA Services and Early Childhood Development Development Agreement LSL long service leave DIIRD Department of , SEITA Southern and Eastern MAV Municipal Association Innovation and Regional of Victoria Integrated Transport Authority Development SMS Safety Management Systems MFTN Metropolitan Freight DHS Department of Terminal Network SEMP Port Safety and Environment Human Services Management Plans MITM Melbourne Integrated DOT Department of Transport Transport Model SSP Shared Service Provider DPCD Department of Planning and MUARC Monash University Accident TAC Transport Accident Community Development Research Centre Commission DSE Department of Sustainability MPTP Multi Purpose Taxi Program TCP Transport Connections and Environment Program MPV Major Projects Victoria DTF Department of Treasury TCFF Transport Connections MSV Marine Safety Victoria and Finance Flexible Funds DWG designated working groups MTM TIML Transurban Infrastructure E10 Fuel ethanol-based fuel NAIDOC National Aboriginal Islander Management Limited Day Observance Committee EE Environmental Effects TSV Transport Safety Victoria Statement NCTC National Counter Terrorism Committee TTA Transport Ticketing Authority EFT electronic funds transfer TRIM Total Records and NERRP North East Rail EMS Environmental Revitalisation Project Information Management Management Statement USL Uniform Shipping Code NSW EPA Environment Protection UDF Urban Design Framework Authority NPV net present value VCAT Victorian Civil and FOI Freedom of Information OH&S Occupational Health and Safety Administrative Tribunal FRD Finance Reporting Direction VCOSS Victorian Council of OHS&W Occupational Health, FSC Federal Safety Commissioner Safety and Wellbeing Social Services FTE full-time equivalent VCTA Victorian Community PC personal computer Transport Association GAA Growth Areas Authority PFN Principal Freight Network VICERs Vigilance Control and GFC Global Financial Crisis PoHC Port of Hastings Corporation Event Recording System GPS Global Positioning System PoMC Port of Melbourne VicRoads Roads Corporation of Victoria GST Goods and Services Tax Corporation VIPP Victorian Industry HPFV High Productivity PPP Public Private Partnership Participation Freight Vehicle PTSV Public Transport VISTA Victorian Integrated Survey HSRs Health and Safety Safety Victoria of Travel and Activity Representatives RACV Royal Automobile Club V/Line V/Line Passenger IA Infrastructure of Victoria Corporation IFRS International Finance RCTG Rail Crossing VMR Volunteer Marine Rescue Reporting Standards Technical Group VPS Victorian Public Service IRI International Roughness Index RNERV Rail Network Emergency Response Vehicle VRCA Victorian Regional IRPs Issue Resolution Procedures Channels Authority RTBU Rail, Tram and Bus Union KDR Keolis Downer EDI VRCSSC Victorian Railway Crossing SCADA Train Supervisory Control KPI Key Performance Indicator Safety Steering Committee and Data Acquisition LAAP Local Area Access Plan VTD Victorian Taxi Directorate SCSA Southern Cross LED light emitting diode Station Authority WAT Wheelchair Accessible Taxi LMA Linking Melbourne Authority

2 Secretary’s foreword

The Victorian Transport Plan »» Introduced additional carriages and Melbourne@5million for regional rail services If 2008-09 was the year in which »» Delivered the return of rail services the Government released the to Maryborough from 25 July 2010 $38 billion Victorian Transport Plan »» Completed and opened the new and its sister planning strategy, Coolaroo Station Melbourne@5million, 2009-10 was the year DOT got on with the job of »» Awarded the contract for the delivering on the commitments in The design of four new train stations Victorian Transport Plan. Melbourne’s at Williams Landing, Lynbrook, The Department growth has meant we need to Caroline Springs and Cardinia carefully plan for the sort of city we Road, Pakenham of Transport (DOT) want and the sort of transport system »» Opened new lanes and ramps we need, but we also need to build on the Monash and West Gate was established in real change on the ground. 2008 to build a safer, Freeways as part of the $1.39 Many initiatives of The Victorian billion upgrade fairer and greener Transport Plan are underway, with »» Completed the first of the Victorian over $10 billion of transport projects Cycling Strategy’s upgraded transport system either planned, in delivery or under commuter routes and the Merri construction. These include nearly Creek Pipe Bridge, and introduced for all Victorians, $1 billion for 38 new trains and more Melbourne Bike Share and to create a than 200 new and extended services for the metropolitan train timetable. »» Commenced the $4.3 billion more prosperous Regional Rail Link, and progressed In summary, this year DOT and its planning for other major projects and connected partners have: including WestLink and Melbourne Metro community. Against »» Introduced six of the 38 new X’Trapolis trains into »» Improved safety on and trains the background metropolitan service at night by adding 50 extra transit police and more staffed stations of an uncertain »» Commenced works on the extension of the Epping line »» Attracted 76 expressions of interest international to South Morang to participate in Victoria’s ground breaking trial of electric vehicles economy and the »» Commenced work on Peninsula Link »» Rolled-out on Melbourne’s train network need to reduce our »» Started major work on the carbon footprint, electrification of the Sydenham Importantly, the legacy of these rail line to Sunbury investments will go beyond just a meeting the transport »» Completed the grade better transport network. Transport needs of a growing separation of Springvale Road spending at these levels has been a at Nunawading key economic driver in Victoria this state in 2009-10 year. During 2009-10, DOT entered »» Continued work on the into 23 major contracts worth $5.2 has presented $2.25 billion upgrade of the billion, which are delivering 93 per M80 Ring Road cent local content, creating more than challenges, but »» Introduced more than 500 6,000 direct jobs and around 34 new challenges to which new and extended weekly full-time apprenticeships. train services the Department has risen.

3 Department of Transport Annual Report 2009-10 Growing regional Victoria Transport Integration Act 2010 The importance of improved The passage of the Transport transport networks to growing Integration Act 2010 was also a major regional communities and economies milestone for DOT, after some two continued to be a focus for DOT in years of public consultation. The Act, 2009-10. This means: which came into effect on 1 July 2010, reinforces the closer integration of »» Partnering with the Australian land use and transport planning and Government and the Australian builds on the development of both Rail Track Corporation on the The Victorian Transport Plan and $612 million North East Rail Melbourne@5million. Revitalisation Project to create a rail freight super highway between Responding to climate change Melbourne and Albury and which includes a rail bypass of Wodonga Transport accounts for one sixth of Victoria’s greenhouse gas »» Continuing construction on a suite emissions, and while the Victorian of Nation Building Program projects Government has an important such as the Nagambie Bypass, the role in helping to reduce transport Anthony’s Cutting realignment and emissions, we all have a role to upgrades to the Princes Highway play in our choices of travel. between Traralgon and Sale To support these choices, DOT »» Road and bridge upgrades in the is working collaboratively to: Green Triangle Region in south west Victoria that pave the way »» Shape our cities to reduce the for a trial of Higher Productivity need for long-distance travel Freight Vehicles »» Allow people to choose »» Expanding the $80 million Transport sustainable modes more often Connections program to provide »» Making all the modes less innovative public transport options greenhouse intensive by shifting for people in regional Victoria to more efficient vehicles DOT will continue the roll out of these DOT people are leading by example. and other regional projects in 2010-11 This year, 84.5 per cent of DOT and work to deliver the $71.4 million people got to work by taking public investment in roads infrastructure transport, walking or cycling, and and bus improvements outlined in the we have reduced our fleet vehicle Government’s blueprint for regional greenhouse gas emissions by more growth – Ready for Tomorrow. than 30 per cent since 2005-06. Significant progress was made this year 2009-10 was a very busy year for toward the continued improvement of DOT but there will be no let-up in Victoria’s freight network. The $77 pace in 2010-11. There will be a million package of works to upgrade continued focus on delivering VTP priority regional rail lines identified projects, major construction will begin in the Victorian Rail Freight Network on the $4.3 billion Regional Rail Link Review was completed in partnership and we will take delivery of new trains with V/Line, the Australian Rail Track and . The Transport Integration Corporation and grain companies. Act will be embedded across the The Green Triangle Freight Action Plan portfolio and its decision-making moved forward with improvements principles will become our new way totalling approximately $40 million now of doing business. undertaken since the release of the The It will be an exciting time for us in Victorian Transport Plan in April 2009. the DOT and I’m proud to be part of a great team building a safer, fairer and greener transport system for all Victorians.

4 Mission and values

Connectedness and DOT aims to open communication move people and We are open, honest and transparent. goods more safely, We keep people informed and involve people in the department’s strategy sustainably and and purpose. We take time out to get to know the people we work with. efficiently and provide Respect, openness and courage a transport system We treat all people fairly. We strive that supports people, for our workplace to be free of discrimination, harassment and the environment and bullying. We have the freedom to make mistakes and learn from them. the economy. We work in ways that promote trust Mission among us. Collaborative and Building a safer, fairer and greener cooperative relationships transport system for all Victorians to create a more prosperous and We willingly assist others when they connected community. ask for help. We think and behave as one team showing respect for Values each other’s point of view. We value partnerships within the department, Our values are the platform for our across the transport sector and action at DOT. They are consistent across government. We share the with the Victorian Public Service Code wins and losses as a team. of Conduct and highlight our people’s commitment to professionalism. Our Achievements and responsiveness seven organisational values are: We are accountable for our own Enabling and inclusiveness work and time. We work quickly, but to a high standard. We focus on the We respect people’s differences. We results. We respond in a timely way treat people fairly and ensure that and recognise the needs of others. everybody has a voice. We respect and We identify and promote best acknowledge people’s contributions. practices, and acknowledge and We share knowledge and provide each recognise good work. other with fair and honest feedback. Passion and fun Behaving ethically We bring passion to the task and We take responsibility for our actions. have energised conversations about We handle sensitive information with work. We are happy to come to and care. We use power and positional be at work, contribute to the ‘good authority responsibly. We strive to buzz’ around the place and say earn the public’s trust and avoid any hello to people with a smile. real or apparent conflict of interest. Department of Transport Transport portfolios

Ministerial Portfolios DOT supports two portfolios: »» Minister for Roads and Ports, Tim Pallas »» Minister for Public Transport, Martin Pakula

It also supports two Parliamentary Secretaries: »P» arliamentary Secretary for Roads and Ports, Don Nardella »P» arliamentary Secretary for Public Transport, Brian Tee

Roads and Ports portfolio Statutory authorities: »» Roads Corporation of Victoria The Roads and Ports portfolio oversees (VicRoads) the development and integration of Victoria’s extensive roads network, »P» ort of Hastings Corporation (PoHC) world-class commercial ports and »P» ort of Melbourne Corporation (PoMC) the implementation of The Victorian Transport Plan. This helps to develop »» Linking Melbourne Authority (LMA) the state’s economy, cater for an »» Victorian Regional Channels expanding population and preserve the Roads and Ports Portfolio Authority (VRCA) liveability and connectivity of our towns Tim Pallas MP and suburbs. Minister for Roads and Ports Parliamentary Secretary The Roads and Ports for Roads and Ports portfolio includes: The Parliamentary Secretary for »» Maintaining and enhancing Roads and Ports provides policy Victoria’s arterial road network support on: »I» mproving road safety for all »» Motorcycle safety road users »» Legislative program »E» nsuring our ports remain competitive and are integrated »P» eri-urban and interface roads with our transport network »» Supporting Australia’s freight and logistics industries »» Encouraging alternative transport modes such as walking and cycling

Parliamentary Secretary »» Regulating marine safety for for Roads and Ports Victoria’s bays, coastline and waterways Don Nardella MP January 2010 – current The Minister for Roads and Ports and the Minister for Public Transport are the Victorian representatives on the Australian Transport Council (ATC); the peak body that coordinates and integrates national transport and road policy issues for , State, Territory and New Zealand Governments.

7 Department of Transport Annual Report 2009-10 Public Transport portfolio Parliamentary Secretary

The Public Transport portfolio for Public Transport oversees Victoria’s extensive public The Parliamentary Secretary for transport system. Public Transport provides policy The Public Transport support on: portfolio includes: »» Taxi administration and reform »» Contract and lease arrangements »» Bus routes review for train, tram, route bus, school Public Transport Portfolio bus services and infrastructure »» Transport review The Hon. Martin Pakula MLC »» of the taxi industry Minister for Public Transport »» Regulation of public transport safety January 2010 – current »» Accessible transport services and facilities Minister for Public Transport »» Management of large and complex July 2009 – January 2010 transport infrastructure projects Statutory authorities »» Public Transport Ticketing Body (Transport Ticketing Authority – TTA) »» V/Line Passenger Corporation (V/Line) »» Victorian Rail Track Corporation (VicTrack)

Parliamentary Secretary for Public Transport Brian Tee MP January 2010 – current

Rob Hudson MP July 2009 – January 2010 Organisational structure 2009-10

Business and Executive Services Business and Executive Services provides support, guidance and advice on: corporate planning, DOT Divisions property services, procurement and contracting, , record and document management, online services, administrative services, and DOT, along with its portfolio ministerial and executive support agencies, is responsible for services. It also manages DOT’s relationship with the Shared Service public transport, roads and Provider, including accommodation, ports across Victoria. facilities, carpool and library services. Delivery Coordination Division Delivery Coordination Division aims to improve the effectiveness and quality of project management and delivery across the organisation. It ensures decision making on projects is informed by, and aligns with, the strategic directions set out in The Victorian Transport Plan and Melbourne@5million. DOT Legal DOT Legal provides a broad range of policy, legislative, legal, enforcement, risk management and government services that support our Ministers and stakeholders, contribute to an integrated and sustainable transport system and help to deliver DOT’s mission statement. Finance The Finance Division supports DOT’s internal and external financial management and financial reporting responsibilities. This includes budget management, financial operations and associated systems, taxation and financial management compliance. Freight, Logistics and Marine Freight, Logistics and Marine implements the Government’s in the ports, marine, freight and logistics sectors in partnership with agencies, industry and the community. The division encourages better use of Victoria’s freight network, plans for freight growth and works to address freight network needs.

9 Department of Transport Annual Report 2009-10 Integrated Transport Planning Public Transport Transport Projects Integrated Transport Planning works Public Transport Division plans and Transport Projects Division is within the portfolio and across manages contracts for the provision of responsible for infrastructure government to achieve whole-of- Victoria’s rail, tram and bus operations. project delivery, rolling stock government coordination of transport It regulates Victoria’s taxi and hire procurement and major commercial and land use planning across the vehicle operations and it develops transactions for the department. respective transport networks (road, projects to meet future transport needs The division unites the programs rail and marine). It provides strategic in line with the government’s objectives and people responsible for delivering advice and long-term plans for for public transport. Public Transport integrated and sustainable transport transport in Victoria. It contributes to Division works closely with other infrastructure. The team consists of major project and policy documents areas in the department and across well-defined groups working closely and strengthens links between key government, councils and with external together to meet Victoria’s current transport and land use authorities. stakeholders and community groups. and future transport needs. Intergovernmental Relations Regional Rail Link Public Transport Safety: independent bodies linked to DOT Intergovernmental Relations Regional Rail Link is responsible manages DOT’s relations with the for planning and delivering the $4.3 Both Public Transport Safety , state and billion Regional Rail Link project – Victoria (PTSV) and the Chief territory governments and local dedicated regional rail tracks from Investigator – Transport and Marine government on national policy, west of Werribee to Deer Park, Safety Investigations – operate as regulatory and infrastructure and along the existing rail corridor independent bodies with administrative planning and investment issues. through Sunshine and Footscray links to the department and they into Melbourne’s Southern Cross fulfil financial reporting requirements People and Organisational Station. The Regional Rail Link project through DOT’s annual report. Development is the biggest single investment in PTSV prepares an Annual Safety People and Organisational the metropolitan rail network since Review to overview the key activities Development delivers initiatives that the was built and the first and highlights for the financial year encourage inclusiveness, strengthen major, new rail line for metropolitan and the Chief Investigator’s reports people progress management, assist Melbourne in 80 years. are published on the DOT website: DOT’s cultural change agenda in Security and Emergency www.transport.vic.gov.au becoming a values-based organisation Management and focuses on health, safety and In 2009-10 and following Ministerial wellbeing. The division helps to Security and Emergency Management approval, PTSV and the Chief achieve DOT’s aim to be the best provides security and emergency Investigator no longer have a separate public sector agency in Australia, management coordination, advice section within the DOT annual report. build organisational capability and and guidance to ministers, DOT and facilitate access to development the surface transport sector. The Marine Safety Victoria opportunities so that DOT people division also contributes to whole-of- Under the Marine Act 1988 and can realise their full potential. government security and emergency Marine 2009 Marine management coordination at national Safety Victoria is responsible for: the Policy and Communications and state levels. management and coordination of Policy and Communications takes Systems and Information Services pollution response in Victorian waters; the lead on sustainable and active waterway management; regulation of transport policy, transport social Systems and Information Services vessel operations; licensing of vessel policy and transport economics and leads the development of DOT’s operators, marine pilots and harbour modelling. It delivers a number of information and communication masters; investigation of incidents sustainable transport programs technology strategy, enterprise and the promotion of marine safety together with communications architecture and through education and training. services like: graphic design, web framework. The division guides IT and new media services and strategic investment and helps to maximise engagement services. opportunities for information, business process and technology use.

10 Organisational structure 2009-10 (continued)

Jim Betts Gillian Miles Robyn Clark Secretary Deputy Secretary, Executive Director, Strategic Transport Planning People and Organisational Jim was appointed Secretary of Development DOT in May 2008. Prior to this, Jim Gillian joined DOT in October served as Director of Public Transport 2009. Prior to this, she was Deputy Robyn joined DOT in June 2008 after overseeing Victorian train, tram, Secretary, Community Development operating her own human resources bus and taxi operations. Jim has a at the Department of Planning and consulting business for seven years. Bachelor of Arts from Oxford and a Community Development where Previously, Robyn held senior roles management science degree from she led the community development with a global consultancy, Telstra London University. He worked in portfolio with a focus on addressing and with Victoria’s Human Services a number of roles for the British disadvantage, building social cohesion and Health Departments. She Government including Assistant and local decision making. She has a holds a Bachelor of Arts (Human Private Secretary to the Secretary strong transport background, having Services), Graduate Diploma in Adult of State for Transport and Policy worked at VicRoads for over five years Education and Training, Masters Adviser in the Railways Directorate. as Executive Director of Regional Degree in Education (Workplace) and In Victoria, Jim has also worked in Services managing the road network, an Executive MBA in Strategic Human the Department of Treasury and registration and licensing activities Resources Management. Finance as Director, Transport across Victoria. She holds a Bachelor Reform; Assistant Director, Project of Education (Arts, Media) and a James Lavery Development and Commercial Masters in Cultural Studies. Gillian Executive Director, Division and Deputy Director, is currently undertaking a Doctorate DOT Legal Public Transport. in Business Administration at General Counsel RMIT University. Gary Liddle James was appointed to his current role in July 2008. He joined the Chief Executive, Ray Van Kuyk Department of Infrastructure in 2004 VicRoads Deputy Secretary, as Commercial Counsel for the Public Programs Gary was appointed Chief Executive Transport Division. In 2005, he became of VicRoads in March 2007. He Ray was appointed Deputy Secretary General Manager of the division’s legal joined VicRoads’ predecessor, the in June 2008. Prior to that he was branch. James was a Senior Associate Country Roads Board, in 1971. He has Acting CEO of the Transport Ticketing at Phillips Fox Lawyers before joining held various positions in VicRoads Authority and headed up Programs, the department. He has a Bachelor including Deputy Chief Executive, Systems and Finance in the Public of Laws (Honours) from Monash Director Major Projects, General Transport Division. Prior to this Ray University and a Bachelor of Arts Manager Road System Management worked for 25 years in the project from Melbourne University. and Project Manager for the Eastern environment including 14 years in Freeway and the Bypass. the Australian Army. He also held Hector McKenzie He also worked with the United senior general management roles at Director of Public Transport Kingdom Highways Agency for a NEC and Fujitsu Australia. Ray has Hector was appointed as the Director short period in 1999. Gary is a board a Masters in Project Management of Public Transport in 2008. His member and Chairman of Austroads and a Post Graduate Diploma in extensive public sector transport (the Australasian organisation of road Telecommunications and Systems experience includes managing authorities). Gary has a Bachelor Management. Victoria’s bus service contracts; part of Civil Engineering and a Graduate of the franchising of the former Public Diploma in Management. Transport Corporation; planning public transport for the Melbourne 2006 Commonwealth Games and overseeing the commercial arrangements for Victoria’s rolling stock procurements.

11 Department of Transport Annual Report 2009-10 Organisational structure 2009-10 (continued)

Department of Transport organisational structure 30 June 2010

The Hon. Martin Pakula MLC Tim Pallas MP Minister for Public Transport Minister for Roads & Ports

Jim Betts Secretary Department of Transport

Ian McCallum Alan Osborne Chief Investigator Len Gainsford Public Transport Transport & Director Safety Victoria Marine Safety Audit & Assurance Investigations

Robyn Clark Gillian Miles James Lavery Hector McKenzie Gary Liddle Executive Director Ray Van Kuyk Deputy Secretary Executive Director Director of Chief Executive People & Deputy Secretary Strategic Transport DOT Legal Public Transport VicRoads Organisational Programs Planning General Counsel Development

Director Di Bates Bree Justin Pearce Tony Hannett Corey Mack Brandon Garwood Terry Alexander Ross Robert Oliphant Cullinan Murray Michael Hopkins General Manager General Manager General Executive Director Director Executive Executive Director Executive Executive Director Executive Director Executive Regional Rail Link Executive Director Executive Executive Director Executive Executive Director Executive Executive Director Executive Lachlan McDonald Chief Finance Officer Chief Finance Marine Safety Victoria Marine Safety Policy & Communications Policy Humphreys-Grey Stewart Freight Logistics & Marine Logistics Freight Transport Projects Division Projects Transport Integovernmental Relations Integovernmental Delivery Coordination Division Coordination Delivery Business & Executive Services & Executive Business Systems & Information Services & Information Systems Security & Emergency Management Security & Emergency Integrated Transport Planning Division Transport Integrated

12 2009-10 Annual Financial Report Chief Finance Officer’s Statement

The Department of Transport’s (DOT) delivered. These outputs include Station Authority (SCSA) was abolished 2009-10 net result was a surplus Transport Safety and Security, Public resulting in $333.6 million of its net of $10 million compared with $116 Transport Services, and Infrastructure assets being transferred to DOT. million in 2008-09. Planning, Delivery and Management. The operating statement includes The financial statements presented DOT’s total operating expense in revenue received by DOT as payments later in this report are prepared 2009-10 was $5 billion. The majority of for outputs delivered. The delivery of in accordance with the Financial DOT’s expenditure was for payments DOT’s outputs is measured against Management Act 1994 and applicable to transport services providers agreed output targets and the Australian accounting standards. In including $1.3 billion for rail system Treasurer certifies revenue based on particular, they are presented in a operations and services, $1.1 billion the level of performance. In 2009-10, revised format consistent with AASB for the Victorian Government’s capital DOT managed its outputs within its 1049 ‘Whole of Government and assets charge for rail infrastructure, available resources. General Government Sector’. The $1.3 billion for road and $0.8 billion financial statements relate specifically for bus services. Payments for public DOT capital expenditure for 2009-10 to the operations of DOT and include transport activities increased by 20 of approximately $1.4 billion included the operations of the Director of per cent compared with 2008-09. This major projects such as Regional Rail Public Transport Safety, and the Chief reflected additional investment in Link, North East Rail Revitalisation, Investigator Transport and Marine public transport services, including Westall Rail Upgrade, Laverton Rail Safety Investigations. a significant increase in spending on Upgrade, South Morang Rail Extension, train maintenance and infrastructure Smart Bus and the purchase of All other agencies and renewal works. In addition, the metropolitan and regional rolling are separate reporting entities and increase reflects the impact of the stock. In addition, capital payments therefore prepare their own annual changed arrangements for fare were made to VicRoads for road reports (including audited financial revenue under the new Franchise construction projects, including the statements). Agreement which commenced Monash-Westgate Upgrade and the The table below shows the financial on 30 November 2009. Under the Transport Ticketing Authority for the results for the last six years in the new Agreement, DOT receives all new myki system. revised format. fare revenue. Under the previous Franchise Agreement, fare revenue Rail assets created by DOT’s capital was received directly by the rail expenditure are transferred by way operators. Operating payments for of equity (see note 21) to VicTrack as road activities increased in 2009-10 the entity responsible for reporting as a higher proportion of road the state’s rail infrastructure network. spending was provided as operating Similarly, assets created by DOT’s rather than capital payments. funding of road programs will be reflected in the accounts of VicRoads. Note 2 of the financial statements As such these assets are not included details DOT’s expenditure on outputs in the assets figure in the table below.

On 31 July 2009, the Southern Cross

Income from 2010 2009 2008 2007 2006 2005 transactions $m $m $m $m $m $m »» Output appropriations 4,461.5 3,961.4 3,994.0 3,705.3 3,311.6 2,800.7 »» Other revenue 527.0 296.5 335.9 305.4 305.1 236.4 Total income from 4,988.5 4,257.9 4,329.9 4,010.7 3,616.7 3,037.1 transactions Total expenses from (4,956.7) (4,137.3) (4,087.4) (4,317.3) (3,366.4) (2,786.8) transactions Net result from 31.8 120.6 242.5 (306.6) 250.3 250.3 transactions Total other economic flows (21.7) (4.2) (37.1) (23.5) (17.9) (29.5) included in net results Net results 10.1 116.4 205.4 (330.1) 232.4 220.8 Total assets 2,573.1 1,331.6 1,641.7 1,388.2 1,385.0 1,161.7 Total liabilities (1,431.3) (781.0) (1,014.2) (989.2) (664.4) (607.9) Net assets 1,141.8 550.6 627.5 399.0 720.6 553.8

13 Department of Transport Annual Report 2009-10 Priority One: Integrate transport and land use planning Integrate transport and land use planning

The integration of Strategies It is focused on six priorities for action: The Victorian Transport Plan »» Shaping Victoria – linking jobs, transport and land services and homes The Victorian Transport Plan supports »» Linking rural, regional and use planning is Victoria’s growth by transforming the metro Victoria essential to provide transport network and integrating it with future land use planning. »» Creating a Metro system – an effective transport improving the frequency, capacity, Released in December 2008, The reliability and safety of our trains system for Victoria Victorian Transport Plan addresses and trams and moving towards a the historic transport imbalances modern Metro system going forward. and bottlenecks between the east and west of Melbourne, and provides »M» oving around Melbourne – linking The new Transport opportunities for suburban and our communities by closing gaps, Integration Act and regional Victoria to share in reducing congestion and improving future growth. safety on the road network the 2008 Victorian »T» aking practical steps for a Through a $38 billion investment The sustainable future by moving Transport Plan Victorian Transport Plan is delivering: towards a sustainable and lower provide DOT with a »» More trains and trams emissions transport system strategic focus on »» More train tracks and stations »» Strengthening the economies of Victoria and Australia land use integration. »B» etter roads and less congestion »» More transport choice in our Many initiatives of The Victorian suburbs and regions Transport Plan are underway with more than $10 billion worth of transport projects being planned or implemented. These include nearly $1 billion for 38 new trains, more than 200 new and extended services for the metropolitan train timetable, commencement of works on the extension of the Epping line to South Morang and electrification of the line to Sunbury, the start of Peninsula Link and significant work on the M1-CityLink-Westgate upgrade.

15 Department of Transport Annual Report 2009-10 Freight Futures Port Futures Metropolitan Freight Terminal Network The Victorian freight network strategy, Released in August 2009, Port Futures: Freight Futures, was released with The New Priorities and Directions for Port container traffic is predicted Victorian Transport Plan in December Victoria’s Ports System details an to increase four-fold by 2035. 2008. Freight Futures is the Victorian efficient, integrated and sustainable Government’s long-term strategy ports system that fits seamlessly Planning is underway to develop for an economically, socially and into national transport and freight the MFTN to cope with this increase environmentally sustainable freight networks. The report builds on and in a sustainable and efficient way. network for Victoria. It is the first updates the Victorian Ports Strategic The MFTN will provide a system of comprehensive strategy of its type Framework (2004). intermodal terminals in Melbourne’s in Australia. A number of priorities major industrial areas connected underpin Freight Futures, including: Port Futures was released along with long term strategic land use to the Port of Melbourne by high »» Integrating transport and land and development plans for each of capacity rail and road container use planning Victoria’s four commercial trading shuttle services. ports: Melbourne, , Portland »T» argeting infrastructure In order to operationalise and and Hastings. Developed in close investment for efficient and further refine the Melbourne Freight consultation with local communities, resilient freight transport Terminal Network (MFTN) concept, these four plans provide a picture the Government released on 27 »» Improving safety, security and of how growth may be successfully April 2010 a discussion paper titled environmental performance in managed in the future. the freight sector Shaping Melbourne’s Freight Future. Port Futures also details proposals The paper puts forward for discussion: Freight Futures sets out a wide range to further develop the Port of of important initiatives, including: Melbourne container terminal – »» Government’s overall approach »» Identifying a Principal Freight ensuring adequate capacity and for the MFTN increased market competition. Network (PFN) connecting ports, »» A set of key design propositions airports and intermodal terminals It proposes improvements to port to focus planning and investment »» Processes for implementing the governance including the integration agreed propositions »» Planning and developing a of the Port of Hastings and the Port Metropolitan Freight Terminal of Melbourne management while The feedback received through the Network (MFTN) to help move also making DOT responsible for all discussion paper consultation process freight efficiently through the local ports from 1 July 2010. will be used in the preparation of a Port of Melbourne final intermodal policy paper, due for Port Futures also addresses the need Government consideration by mid »» Planning for a new Melbourne for stronger protections for ports 2011. This will form the blueprint for International Freight Terminal in the Victorian planning system. progressing the MFTN in partnership adjacent to the Port of Melbourne Following its release, the Minister with the private sector and the »» Relocating the Interstate Rail for Planning appointed an advisory community. Terminal in the Dynon precinct committee in September 2009 to to a new terminal review planning controls for the ports A functioning MFTN will improve of Geelong, Hastings and Portland the efficiency and sustainability of »» Implementing a Truck Action and the port environs of the Port moving Melbourne’s growing freight Plan to improve amenity in the of Melbourne. The committee is task and will encourage the use of rail inner west scheduled to provide its findings to in the movement of the metropolitan »» Introducing a trial of next- the Minister in October 2010. container freight to and from the Port of Melbourne. This is currently generation High Productivity Geelong Port Governance Review Freight Vehicles (HPFVs) undertaken exclusively by trucks on A governance review of the Port of the road network. »» Environmental studies and Geelong was completed during 2009-10 design work in preparation for MFTN operations are expected to and recommended that the role of the the development of the Port commence on a small scale in the Victorian Regional Channels Authority of Hastings next three to five years. (VRCA) be enhanced.

Amendments to the Port Services Act 1995 are now being considered and will enable the VRCA to assist with integrated planning, development, management and promotion activities at the Port of Geelong.

16 Transport Integration Act 2010 The Act provides a consistent framework based on integration The Transport Integration Act, passed and sustainability which applies to by Parliament in February 2010, is Government agencies which are Victoria’s principal transport . required to make decisions which It is the centre-piece of the most significantly impact on the transport extensive review and re-write of system. In particular, it has a strong State transport legislation in more focus on better integrating transport than 25 years. and land use planning.

The Act has a vision statement which: For the first time, the Act also brings “… recognises the aspirations of together under one statute all Victorians for an integrated and agencies in the transport portfolio, sustainable transport system including roads, rail, ports and that contributes to an inclusive, marine. It also repeals or amends prosperous and environmentally an array of existing legislation. responsible State.” The Act: The objectives in the Act are: »R» equires transport and government »» Social and economic inclusion agencies to include broad social, economic and environmental »» Economic prosperity considerations when making »» Environmental sustainability transport system decisions »» Integration of transport and »R» ewrites Victorian transport agency land use to ensure consistency with the Act’s vision, objectives and »» Efficiency, oordinationc decision-making principles and reliability »» Provides for periodic reviews »» Safety, health and well being and revisions of The Victorian Transport Plan while assisting in The Act also sets out decision its implementation making principles: »» Recognises that other organisations »» Integrated decision making – called interface bodies – make »T» riple bottom line assessment decisions which impact on the transport system, like other state »» Equity departments, agencies and »T» ransport system user perspective local government »» The precautionary principle »» Equips a nominated person within DOT to act as a Transport »» Stakeholder engagement and Infrastructure Development Agent community participation – who is able to scope and develop »T» ransparency transport infrastructure projects and who has body corporate powers to buy, hold and sell land.

17 Department of Transport Annual Report 2009-10 Integrated Victorian Integrated Survey Delivering Melbourne’s transport planning of Travel and Activity newest sustainable Integrated transport and land communities Integrated Transport Planning use planning are supported by DOT coordinates whole-of-government comprehensive new data on travel Meeting the demands of Melbourne’s transport and land use policy and and activity derived from the rapidly growing population will involve planning. It strengthens links Victorian Integrated Survey of setting land aside now for community between key transport and land use Travel and Activity (VISTA). and public infrastructure, including authorities, including DOT, VicRoads, road, cycling and public transport In 2009-10, results from the first VicTrack, the Department of Planning links, and preserving areas of open round of VISTA data collection were and Community Development (DPCD), space and ecological significance. made publicly available through an the Growth Areas Authority (GAA) and on-line interactive analysis tool. After the release of Melbourne@5million the Linking Melbourne Authority (LMA). The site summarises the travel and The Victorian Transport Plan, Key achievements in 2009-10 included: behaviour of 17,000 households a taskforce was established to from Melbourne and major oversee the review of Melbourne’s »» Providing input into the review regional centres. urban growth boundary and the of transport and planning implementation of integrated land legislation including the Transport VISTA data has already been used use and transport initiatives in Integration Act, the Growth Areas to update the Melbourne Integrated Melbourne’s growth areas. Infrastructure Contribution and Transport Model, a multi-modal Victoria Planning Provisions transport demand model for DOT joined other departments Melbourne which allows large-scale and agencies on the taskforce to »» Continuing input into DPCD and transport infrastructure and land ensure a whole-of-government the GAA land use plans for use planning scenarios to be tested approach. Delivering Melbourne’s Armstrong Creek, Geelong and and evaluated. Newest Sustainable Communities metropolitan growth areas, was completed in December 2009 reflecting DOT’s and VicRoads’ Free and open access to the data and submitted to Parliament. strategic planning and The by councils, consultants, academic Victorian Transport Plan updates researchers and other members of It outlines proposals to: the public is an Australian first. »W» orking closely with DPCD on »» Revise Melbourne’s urban growth Delivering Melbourne’s Newest Information obtained through VISTA boundary and designate land for Sustainable Communities by taking will continue to contribute to quality development an integrated approach to land travel demand analyses within the use and transport planning so »» Plan the alignments of the Regional department and across the broader that infrastructure and essential Rail Link (west of Werribee to Deer community. Following the success services will be delivered as new Park) and the Outer Metropolitan of the first VISTA survey, a second communities in the growth Ring/E6 Transport Corridor round of data collection with a areas develop further 15,000 households was also »» Define the boundaries and »T» ransport related initiatives and completed in 2009-10. management of areas for grassland collaboration work with DPCD reserves in Melbourne’s west in six Central Activities Districts Results from this additional survey and Geelong Transit City, which will also be made available to is delivering improved access, the public in 2010-11, allowing safety and mobility across several short-term travel trends to be transport modes investigated and monitored.

18 Central Activities Districts The following work was carried  Ringwood out in 2009-10. Melbourne@5million provides for DOT is working with DPCD and the development of six Central Footscray Maroondah City Council on the Activities Districts (CADs) to change creation of an urban heart to help Part of the $52.1 million Footscray metropolitan Melbourne into a establish Ringwood as the primary Renewal Program, the William Cooper multi-centre city. mixed use hub in Melbourne’s footbridge – a safer, more accessible outer east. The Victorian Transport Plan pedestrian link to central Footscray – supports the development of Box was officially opened in May 2010. A new town centre, incorporating Hill, Broadmeadows, Dandenong, Broadmeadows Town Square South and a new bus Footscray, Frankston and Ringwood interchange, is being constructed. as CADs. In 2009-10, pedestrian and cycling projects have been delivered on Improvements are being made to They are being delivered by DOT in Pearcedale Parade, Johnstone Street urban amenity and pedestrian and partnership with DPCD, VicRoads, and Main Street Extension, together cycling activities on Maroondah VicTrack, local councils and other with planning and design work for Highway between Ringwood Street government departments. the station interchange upgrade. and Warrandyte Road. Frankston Land acquisition, enabling the consolidation of the North West Work is proceeding on the Station Precinct Development Site, development of a longer term station is also taking place. precinct blue print and studies are underway with DPCD to examine Dandenong options for an upgrade of the bus Revitalising Central Dandenong interchange and to develop an is being delivered by VicUrban in Urban Design Framework for the partnership with DPCD and the City station precinct. of Greater Dandenong, with VicRoads Box Hill and DOT’s input. In partnership with DPCD, VicRoads, DOT’s focus is on transport planning, Whitehorse City Council and other short-term development of the bus government departments, DOT is interchange and long-term planning working to deliver preliminary designs for the Dandenong Station and transit for an upgrade of the Box Hill bus interchange redevelopment. interchange as well as undertaking an access and mobility study. The vision for Dandenong is for it to become a regional hub for offices Geelong Transit City and services, supported by a vibrant mix of retail, commercial, leisure $25 million was allocated over four and transport facilities, serving an years in the 2008-09 State Budget for expanded residential population. a new environmentally sustainable Government Service Building at Geelong Railway Station. Significant work was also carried out on the Trainshed Way project, a new street from the railway station to create better connections to the waterfront and central Geelong which is due for completion in late 2010.

19 Department of Transport Annual Report 2009-10 Priority Two: Support the Victorian economy with an effective and resilient transport system Support the Victorian economy with an effective and resilient transport system

DOT supports the Victorian Metropolitan train and economy in providing an effective tram refranchising On 1 September 2009, MTM (operating and resilient transport system. as Metro) and KDR (operating as ) were awarded contracts to Key freight, rail, tram and bus operate the Melbourne metropolitan projects will improve the efficiency train and tram networks for eight years, with an option for a seven-year of our transport network for today extension. MTM and KDR will work closely with the Government to deliver and in years to come. key projects of The Victorian Transport Plan including 50 new, low-floor trams and 38 new X’Trapolis trains. Refranchising of trains Metro commenced operation of the metropolitan rail network on 30 November 2009, and committed to 2000 fewer cancellations and a 10 per cent improvement in punctuality during the first year of its contract.

In 2009-10, the percentage of timetabled services delivered by Metro has been higher than the same period in 2008-09. However, MTM’s punctuality results in 2009- 10 were poor, leading the Victorian Government to withhold $4 million in revenue from MTM.

MTM is committed to improving network performance and is implementing a number of initiatives to boost punctuality and reliability across the network, in particular through a significant increase in maintenance. Refranchising of trams KDR, the new owners of Yarra Trams, assumed operation of the metropolitan tram network on 30 November 2009, pledging to improve punctuality from 78 per cent to 82 per cent and reduce cancellations across the term of its contract.

Yarra Trams exceeded the reliability and punctuality targets for each month of operation from December 2009 to June 2010.

21 Department of Transport Annual Report 2009-10 Improving train networks Train improvements Improving tram network Metropolitan Melbourne New trains New trams The Victorian Government invested During 2009-10, six new X’Trapolis To service the increasing demand $145 million in infrastructure works trains – the first of 38 – entered for tram services in Melbourne, in 2009-10 to improve reliability service on the Melbourne network. $1 billion is being invested to across the rail network. The trains will meet the ongoing purchase 50 new, low-floor trams increase in demand and provide more and supporting infrastructure. The works maintenance and than 30,000 people access to the renewal program, carried out from public transport system. Each new tram will be able to carry December 2009 to June 2010, 200 people at a time. delivered the following: Importantly, this investment will create new training and employment Alstom and Bombardier are the »» 46,000 concrete sleepers, opportunities in regional Victoria – two short-listed companies involved replacing wooden sleepers to with 19 trains being assembled in the competitive tendering process improve track stability in Ballarat. with the contract to be awarded in »» Reconstruction of nine turnouts late 2010. Victoria’s regional network will »» 12.5 kilometres of new rail continue to improve as a result of Under the contract, the successful supplier will have to ensure a »» 79 kilometres of rail grinding increased capacity on the V/Line minimum of 25 per cent local content (grinding restores the profile and network, with 54 new carriages now in the manufacturing component of removes irregularities from worn on order. Of these, 22 carriages the project. Combined with long-term track to extend its life) were in service by June 2010 and the remaining 32 carriages will arrive as maintenance activity, this will ensure »» 111 kilometres of track tamping, 11 VLocity trains to be in operation a minimum of 50 per cent local which packs the ballast to make by late 2011. content for the new trams. the tracks more durable New train timetables The new trams will begin to arrive »» Replacement of 17 kilometres in late 2012. of overhead wires New timetables were released in July 2009 and June 2010 to meet Tram services extended to »E» quipment upgrades to electrical increased demand for train services. the Docklands substations to improve the reliability of power supplies to On 20 July 2009, Melbourne’s network In September 2009, DOT completed the system gained 290 new and extended weekly the Route 48 project. It created a link between the Docklands and »» Renewal of 14 signal heads services. Passengers on the Werribee line benefited most, receiving 225 of Melbourne CBD and improved Regional Victoria these services. passenger access to transport services at Southern Cross Station V/Line carried out a $55 million Similarly, on 6 June 2010 the and other tram services in the CBD. maintenance program aimed at Frankston, Cranbourne and boosting reliability and planning Pakenham lines received 211 new New tracks were installed where for future services. It commenced weekly and extended services. Wellington Parade and Collins a program to replace 80,000 timber Street intersect with Spring Street sleepers with concrete sleepers in Melbourne. on the Gippsland line, and has renewed more than 40 level The improvement was made possible crossings, strengthened bridges by a 500 metre track extension. and maintained signalling systems. Additional peak capacity has also The State Government purchased been provided on Route 86 from nine new VLocity carriages including Bundoora, Route 112 from West the 100th VLocity carriage for the Preston and along Bridge Road as regional rail network. a result of the Docklands extension. Overall, a total of 114 new weekly tram services have been introduced across routes 48, 70, 75, 86 and 112 as a result of the timetable changes associated with the improvements.

22 New timetables for St Kilda Rail projects – metropolitan Sunbury electrification Road tram routes South Morang rail extension In December 2009, O’Donnell Griffin More than 100 new weekly tram and Laing O’Rourke Electrification services were introduced on the St DOT, Metro, VicRoads, John Holland Joint Venture was awarded a major Kilda Road routes on 20 July, 2009. and AECOM have formed a project works contract to electrify the rail Half of the 102 additional services team to extend the Epping to South line from Sydneham/Watergardens benefit passengers travelling to and Morang rail line. to Sunbury. from the city during morning and afternoon peak times, particularly The extension is due for completion in Electrification will relieve passengers travelling southbound 2013 and aims to manage increasing overcrowding on this corridor as from Flinders Street for destinations demand for public transport in metropolitan trains will service on St Kilda Road in the mornings. Melbourne’s rapidly growing north, Sunbury, freeing up V/Line train particularly the areas around Plenty capacity. Once complete in 2012, more Tram depot upgrade Valley and South Morang. than 3,000 people will have access to trains during the morning peak. Southbank tram depot has greater The extension will result in: capacity to accommodate Melbourne’s The upgrades at Sunbury will comply »» 3.5 kilometres of new track new fleet of trams following a $4.1 with the Disability Discrimination Act being laid million upgrade completed in 2009. 1992 and improve passenger and »» Duplication of a five kilometre employee security and amenities. The depot’s stabling yard was section of single track between Sunbury town centre will benefit extended west of the Montague Street Keon Park and Epping stations from 100 new commuter car light rail bridge, providing additional parking spaces. stabling for 15 new, longer trams. »» Construction of three new rail and road grade separations to The Diggers Rest Station upgrade improve transport efficiency will also comply with the Act and along the new rail corridor include 500 more car park spaces. Both South Morang and Epping will New Coolaroo Station have new, fully-staffed premium stations built, while Thomastown The $36 million Coolaroo station was Station will get a significant upgrade. officially opened on 6 June 2010.

The new South Morang Station Located on the Craigieburn rail will include more car parks and a line between Broadmeadows and bus interchange, while car parking Roxburgh Park stations, Coolaroo capacity at Lalor and Keon Park improves access to trains for residents stations will grow. There will also from the communities of Coolaroo, be enhancements to signalling and Dallas and Meadow Heights. power supply on the Epping and Hurstbridge lines. The station features: »» A pedestrian overpass with lifts and Detailed design work, community stairs for safe access across the rail engagement and a program of early line and between the platforms works including service relocations, began in 2009-10. Major works will »» 490 car parks and links to local bus, commence in late 2010. cycling and pedestrian routes »» Artwork completed by Melbourne artist Matthew Johnson in collaboration with Coolaroo South Primary School

23 Department of Transport Annual Report 2009-10 North Melbourne Station upgrade Laverton rail upgrade A $38.6 million upgrade of North More train services will run on the Melbourne Station was completed Werribee rail corridor when the in 2009-10. Laverton rail upgrade is complete. Services will start and finish at Improvements to the station were Laverton Station and additional unveiled on 6 December, coinciding service will increase reliability for with the station’s 150th birthday. passengers travelling on the Werribee line and V/Line services The upgrade included a new to-and-from Geelong. concourse, with lifts and escalators allowing passengers to move around John Holland was awarded the the station from either end of contract for bridge, civil and the platforms. station works in March 2009 and construction started almost The lifts and elevators have improved immediately. Works include: access for people with disabilities and the elderly and the station »» An extra kilometre of track now fully complies with Disability »» New pedestrian overpass Discrimination Act standards. »» A third platform New passenger information displays in easy-to-see locations and »» Bike cages installed at the better speakers for broadcasting new entries announcements were also added. »» Refurbishment of the station building and existing platforms Canopies protect people from the weather while resurfaced platforms The overpass opened on 5 February and new digital CCTV have 2010 and services started from the improved safety. new platform on 9 March. When completed in 2011, the station will More than 11,000 people pass through have an additional 400 spaces the station every weekday and many for carparking. commuters use the station as an interchange between V/Line and City Westall rail upgrade Loop services, as well as to catch the 401 bus. The $153 million Westall Rail Upgrade Project started in January 2010 to ease crowding and reduce delays along the Dandenong line.

The project creates capacity for trains starting and finishing journeys at Westall Station, which is being significantly upgraded including a major expansion of the train stabling yard. Also, a third track between Centre Road and Springvale Road is planned for construction.

Significant track works and upgrades to the station are well progressed. The station works are to be completed by the end of 2010 with the remainder of the project to be completed in 2011.

24 Melbourne Metro – planning Other metropolitan rail upgrades Stabling and maintenance facilities The Melbourne Metro project aims Two other significant railway station to add capacity and help reshape projects delivered in 2009-10 are the To prepare for the arrival of 38 new and expand the reach of the CBD. upgrades of Noble Park and Ferntree trains in Melbourne, more train It will create jobs and strengthen Gully stations to premium status. stabling is required across the rail connections between Melbourne’s network. As a result, more facilities inner suburbs and key educational, Both stations have undergone works are planned or in development at medical and other service precincts. to improve passenger facilities, Craigieburn, Newport, Upfield, including new bike cages, and both Upper Ferntree Gully, Brighton During 2009-10, development are now staffed everyday from first Beach, Epping, Sunbury, Eltham commenced for the new eight to last train. and Westall. kilometre underground rail tunnel and five underground stations which The 2010-11 State Budget provides In 2009-10 the stabling and comprise Melbourne Metro Stage 1. an additional $83.7 million to upgrade maintenance facilities contracts A project team was established which a further 20 metropolitan railway awarded include: includes Aurecon, Grimshaw, Mott stations to premium status. »» Six stabling roads and driver McDonald and Sinclair Knight Merz Platform and ramp works to improve amenities at Newport – awarded as the project’s technical advisors. accessibility for passengers and to Theiss in January 2010 The team has completed detailed comply with the requirements of assessments for the preferred station »» Nine stabling roads at Craigieburn Commonwealth disability discrimination sites and associated urban renewal – awarded to Coleman Rail in legislation have been undertaken at: opportunities in readiness for public March 2010 consultation in July 2010. »» Aspendale » Bonbeach »» Three stabling yards at Upper Construction could start as early »» Edithvale » Clayton Ferntree Gully, Brighton Beach and Upfield – awarded to John as 2012, pending funding »» Croydon » Glenbervie arrangements. This project will Holland in June 2010 significantly transform Melbourne’s »» Macaulay » Mordialloc The contract to design and construct transport network and help achieve »» Mount Waverley » Parkdale new train maintenance facilities at Victoria’s plan for sustainable Craigieburn was awarded to John growth: Melbourne@5million. »» Rosanna Holland in June 2010. Vector Lifting New stations in growth areas Access to the V/Line station at was awarded the maintenance Deer Park has also been improved systems contract. Four new train stations are planned with construction of a new 150 in Melbourne’s key growth areas of space car park. Stabling facilities at Westall, Epping Williams Landing, Lynbrook, Caroline and Sunbury, are under construction Springs and Cardinia Road, Pakenham. as part of rail projects occurring at or near these sites. The existing train In July 2009, the contract for the maintenance facility at Westall is also design of all four stations was being upgraded. Progress on these awarded to Arup Consultants in works will continue until the end partnership with Cox Architects and of 2012. Worley Parsons.

At Williams Landing DOT is working with VicRoads to integrate the extension of the Palmers Road overpass as part of the station project. The project will improve public transport services and road links to Point Cook and Williams Landing. DOT has held community forums in suburbs surrounding the new stations to keep residents informed of progress while also providing a forum for comment or questions on the project.

25 Department of Transport Annual Report 2009-10 Rail projects – regional North East Rail Regional Rail Link Revitalisation Project Return of Maryborough The $4.3 billion Regional Rail Link rail services The North East Rail Revitalisation is jointly funded by the State and Project (NERRP) has continued during Australian Governments. Through $50 million has been provided for 2009-10 and has resulted in: the Building Australia Fund, the the return of passenger rail services Australian Government has invested »» Construction of a five kilometre to Maryborough and in early 2010 $3.2 billion in the Regional Rail Link. rail bypass of Wodonga to remove work began upgrading tracks and Victoria will contribute $1.1 billion. installing stabling yards. Maryborough the rail line from the centre of the services commenced on 25 July 2010. city and construction of a Regional Rail Link will improve new passenger station the network’s regional capacity by As part of the upgrade, $1.9 million »» Converting 200 kilometres of broad allowing trains from Ballarat, Bendigo has been allocated to provide gauge track to standard gauge and and Geelong to run directly into additional car parks and a bus replacing timber sleepers with Melbourne without being caught interchange at the station. concrete sleepers behind suburban trains. In April 2010, construction contracts »» Construction of four new The new link will free-up critically were awarded for a new platform passing loops between Melbourne needed network space on suburban at Creswick Railway Station and and Seymour services and make room in the peak to upgrade level crossings in the hour for 9,000 more passengers. Maryborough region. »» Upgrading V/Line trains to standard gauge It will be concurrently constructed The project will greatly improve »» Construction of new passenger across two broad areas. The first connectivity with other public transport platforms between Seymour and area includes new train tracks services between Maryborough, Albury-Wodonga along the existing rail corridor Ballarat and Melbourne. through Sunshine, West Footscray »» Construction of new stabling and and Footscray to link Deer Park to maintenance facilities for the Southern Cross Station. converted V/Line trains The second area includes a new The total project budget is $612.8 rail line from west of Werribee to million, comprising $156.5 million Deer Park and new stations at of Commonwealth funding, $171.3 Tarneit and Wyndham Vale. million of State funding and $285 million of Australian Rail Track Work started at Southern Cross Corporation (ARTC) funding. Station in August 2009, while the concept design and other An associated $50 million project final decisions – such as route involves improving rail access to alignment and the exact location the Port of Melbourne. The project and configuration of stations – budget comprises $20 million of are expected in 2010. Commonwealth funds, $23.5 million of State funds and $6.5 million of ARTC funds.

When complete, NERRP will deliver a first-class passenger and rail freight link between Australia’s economic hubs of Melbourne and Sydney and improved intra-state passenger rail services between Melbourne and Albury-Wodonga.

26 Bus services Greater Geelong bus service improvements Bus service reviews Stage one improvements made to The Victorian Government’s review the Greater Geelong and Bellarine of bus services continued in 2009-10. Peninsula bus service include: The reviews identified how to deliver more frequent services, better »» 414 extra bus trips per week connections and improved access »» Buses available for longer hours to education, employment, health and social opportunities. »» New routes to Deakin University and Marshall Station In regional Victoria, the reviews boosted bus services in Kilmore, The second stage continues and will Seymour and Shepparton and focus on Geelong’s northern and created more integrated bus services western suburbs and towns on the between Bendigo and Heathcote. Bellarine Peninsula and Surf Coast. A $14.7 million package for South In February 2010, designs for a Gippsland bus and coach services new central bus interchange in created 313 additional trips per Geelong were completed. It will week in that region. feature two bus super stops. The Around metropolitan Melbourne, contract to manufacture and install over 2,200 additional weekly bus the interchange was awarded to trips are now operating in the a local company in April. Craigieburn, Frankston, Hobsons SmartBus Bay, Mornington Peninsula and Wyndham areas. The reviews have SmartBus services providing also delivered new travel options cross-town connections along major servicing universities in Bundoora, roads received a funding boost of Clayton and Werribee. $290 million during 2009-10.

From mid 2010, over 700 extra In April 2010, the Green Orbital bus trips will service universities SmartBus (Route 902) between in Burwood and Lilydale. The Chelsea and Airport West started improvements will be implemented with a free, two-week trial to attract as a result of a review of the patrons. It features frequent cross- surrounding areas, including Knox, town connections to Nunawading Manningham, Maroondah, Monash, Railway Station, tram route 75, Whitehorse and the Yarra Ranges. shopping centres, schools and parks. The service runs: »» Seven days per week »» Every 15 minutes on weekdays and 30 minutes on weekends and public holidays »» Between 5 am and midnight

The second stage of the Yellow Orbital SmartBus (Route 901) service, to commence in 2010-11, will extend Route 901 through Blackburn, Greensborough, South Morang and Melbourne Airport.

Doncaster Area Rapid Transit (DART) is also to commence in 2010-11.

27 Department of Transport Annual Report 2009-10 New bus stops and interchanges Taxi improvements Road infrastructure upgrades were completed Taxi reform projects across Victoria in 2009-10, including installation of shelters and tactile The second stage of taxi reform Truck Action Plan surface indicators. started during the year and A planning study investigation and built on past efforts to improve consultation, completed in 2009-10, Accessibility will continue to improve professionalism and identified a preferred route option as more low-floor buses are introduced of Victoria’s taxi industry. for the Truck Action Plan based on state-wide. an evaluation of short-listed options This year new taxi legislation, the against the identified evaluation criteria. New bus interchange facilities at release of additional taxi licences Leongatha and at secondary schools and new strategies to protect taxi $11 million was invested in in Beechworth, Somerville and Wallan driver income were the focus. December 2009 for planning and have enhanced student and commuter early strengthening works and a safety. More interchanges are planned A new model taxi bailment agreement further $8 million was announced to in 2010 for Kyabram Transit Centre was released in December 2009, widen Shepherds Bridge, including and at Myrtleford, Traralgon and following consultation with the taxi a new shared path. Detailed design Upwey secondary schools. industry. The agreement outlines the of the strengthening solution is well rights, responsibilities and obligations advanced and preparation of tender Rural school bus contracts of drivers (the bailee) and operators documents for the Shepherds Bridge (the bailor). It was released to provide Over the coming decade, up to 72,000 upgrade works is expected to be a consistent framework for all children in regional Victoria will released in late 2010. continue to benefit from free travel drivers and operators and to ensure under the Country Free School Bus fairness and transparency with Springvale Road grade separation Contract Program. revenue sharing, shift allocations and agreements. The new Nunawading Station In 2009-10 1,493 new contracts were opened in January 2010, marking the awarded to continue provision of In the 2010-11 financial year DOT completion of the $140 million project these services that will deliver over plans to release 530 additional taxi to eliminate the Springvale Road level 29 million passenger trips per year, licences of which 330 are wheelchair crossing and build an underground for the next 10 years. accessible. These 330 are additional station. The completion of the grade to the current wheelchair accessible separation has provided motorists The contracts were developed in line taxi fleet. It will also reduce waiting with safer travel and train users with with guidelines from the Department times for passengers. more efficient travel through the new of Education and Early Childhood premium station. Development (DECD) and followed extensive industry consultation. Other road projects For details on Peninsula Link progress please refer to the Linking Melbourne Authority annual report at: www.linkingmelbourneauthority. vic.gov.au. For an update on other road infrastructure projects please refer to the VicRoads annual report at: www.vicroads.vic.gov.au.

28 Freight projects Regional rail freight line upgrades Green Triangle Freight Action Plan Channel deepening DOT, in partnership with V/Line, The Green Triangle Action Plan is the Australian Rail Track Corporation the result of a Green Triangle Freight The Port Phillip Bay Channel Deepening and grain companies has completed Ministerial Summit convened by Project (CDP) was completed ahead of the delivery of a $77 million package the South Australian and Victorian schedule, substantially under budget of works to upgrade priority regional Governments. and within strict environmental rail lines identified in the Victorian guidelines on 25 November 2009. Rail Freight Network Review. The summit identified the need for a plan to ensure appropriate land The project – which commenced This investment in Gold and Silver use infrastructure and an aligned in February 2008 – involved the rail lines was completed in 2009-10. regulatory environment are in place deepening of shipping channels into This will ensure that regional rail to accommodate the forecast the Port of Melbourne to provide freight lines are brought up to a increases in freight traffic in the access for 14 metre draught vessels. standard that enables competitive region, particularly forest products This required over 22 million cubic and efficient rail freight services to and mineral sands to the Port metres of sand and clay to be be provided to Victorians. of Portland. removed from the channels in an area representing around one per In 2009-10 the upgrade of all Silver Since the release of the plan in April cent of Port Phillip Bay. Lines was completed covering: 2009, a number of financial and other commitments totalling approximately »» Benalla – Oaklands The CDP was Victoria’s largest $40 million have been made including: ever marine infrastructure project, »» Quambatook – Manangatang and will provide for efficient access »» $5 million State Government by shipping to the Port of Melbourne »» Charlton – Sea Lake funding for road upgrades on the Henty Highway and Princes for at least another 30 years. »W» arracknabeal – Hopetoun Highway between Hamilton The CDP was the winner of »» Ouyen – Murrayville and Portland Infrastructure Partnership Australia’s »» $4 million State Government prestigious 2010 National Infrastructure More than $1 billion has been spent on the Victorian interstate and funding to facilitate transport of Award, prevailing over other major Iluka mineral sands by rail infrastructure projects from across intrastate rail freight network – the the country. biggest investment in the State’s »» $1.35 million State Government rail freight network for more than funding for the Portland airport The benefits of the CDP were a century. evident on 24 March 2010 with the »» Securing $15 million in Australian arrival of the largest container ship This has included: Government funding to upgrade the Maroona-Portland rail line ever to berth at the Port of Melbourne. »» The ‘buy back’ of the Victorian The vessel, Xin Yan Tai, operated intrastate rail network lease »» Securing $5.7 million in Australian by China Shipping Container Lines, Government funding to partner the »» The implementation of the would not have visited Melbourne State Government in building the Victorian Rail Freight Network prior to channel deepening. $11.4 million Nhill trailer exchange Review recommendations The CDP will add an extra $2 billion »» Aligning cross-border transport »» Completion of key rail projects to the Victorian economy over the regulatory anomalies with South in cooperation with the Australian next 30 years. Australia, including the publication Government and the Australian of Timber Transport Load Rail Track Corporation (ARTC) Management Guidelines for the Green Triangle Region »» $3.1 million State Government funding towards the redevelopment of Portland Bay local port so as to optimise social and economic infrastructure in this region

29 Department of Transport Annual Report 2009-10 Rail freight support package Legislation and The Act allows DOT and other transport delivery agents to The Victorian Government’s two regulatory changes significantly reduce the time required year access fee rebate for bulk grain Transport Integration Act 2010 to assess, approve and deliver major traffic concluded on June 30, 2010. projects without compromising It has been replaced by an ongoing The Transport Integration Act was existing checks and balances or lower-access fee. passed by Parliament in February reducing community consultation. 2010 and became law on 1 July 2010. By lowering the net price paid by It is detailed in Priority One. The Act strengthens project delivery grain companies, the rebate program powers and helps to cuts delays in succeeded in maintaining volumes Transport Legislation Amendment the construction phase, resulting in of grain carried by rail, both for the (Ports Integration) Bill 2010 increased certainty during planning export and domestic markets. It is and delivering phases. More certainty hoped these volumes will continue The development of the Port of Hastings was identified as a priority will achieve substantial cost savings to be maintained under the lower for taxpayers and private investors. access price. project in The Victorian Transport Plan. Port Futures made it clear Miscellaneous reforms The rebate package for container that the best way to enable this freight carried on rail services from development to occur was to integrate The Transport Legislation Horsham, , Shepparton/ the management of the ports of Amendment (Hoon Boating and Tocumwal and has Melbourne and Hastings under the Other Amendments) Act 2009 been extended until mid 2011. new integration and sustainability introduced new measures to make policy framework set out in the the Port of Melbourne safer and The extension of the package will Transport Integration Act. better serviced following the ensure rail continues to play a key channel deepening project. role in the movement of freight The Transport Legislation Amendment from regional areas. (Ports Integration) Bill 2010, introduced From March 2010, larger vessels into Parliament in May 2010, entering the port must have integrates the management of the immediate access to adequate ports of Melbourne and Hastings under services. the Port of Melbourne Corporation, abolishing the Port of Hastings The Act specifies that from August Corporation. 2010, strict new rules will govern management of hazardous activities, Major Transport Projects like ship-to-ship transfers of dry Facilitation Act 2009 and liquid cargoes and hot works in the Port, and abandoned and The Major Transport Projects unattended property. Facilitation Act 2009 became law on 1 November 2009, with the aim of creating a single point of approvals for major transport projects.

30 Fair Fines Package Transport Legislation Amendment Marine Amendment (Compliance, Enforcement and Regulations 2009 On 1 February 2010, the Transport Regulation) Act 2010 (Infringements) Regulations 2010 On 21 October 2009, amendments were introduced and resulted in a Amendments in the Transport to the Marine (Amendment) significant reduction in fines being Legislation Amendment (Compliance, Regulations 2009 were made to imposed on young people for public Enforcement and Regulation) Act 2010 ensure an Australian Builders transport infringements. make important changes to how Plate (ABP) is attached to all newly existing rail, taxi, bus, marine and registered recreational vessels. The new regulations are part of port industries are regulated in terms a Fair Fines Package and have: of service standards, compliance and These steel plates feature key vessel information and act as a »» Abolished the graduated enforcement, and regulatory safety. manufacturer or importer declaration penalty scheme Tourist and Heritage that it meets national standards and »» Piloted Fare Conduct! delivering Railways Bill 2010 details the vessel’s safety history. education programs for 18-20 During 2008-09, the Department’s year olds with fines The Regulations also: Transport Legislation Review identified »» Standardised fines for taxi and a number of key reform priorities »» Meet new national standards commercial passenger-vehicle for the tourist and heritage railways developed and agreed to by COAG infringement offences sector. Around 3,500 Victorians are »» Allow Marine Safety Victoria (MSV) actively involved in the sector as to monitor compliance and work The reduction in fines to 0.5 penalty employees, members and volunteers. with Consumer Affairs Victoria, units, or $58, is consistent with which enforces the standards court-imposed fines. It recognises In its Statement of Government that young people earn less and Intentions released in February 2010, »» Implement recommendations have less capacity to pay. the Victorian Government committed from recent reviews that identified to a new regulatory framework for further need for reform, like the the sector based on the outcomes Review of Pilotage Arrangements of broad consultation. Rail groups and other key industry bodies stongly The Marine Safety review support the reforms. process involved: »» Conducting workshops with In response, the Tourist and Heritage stakeholders in December 2008 Railways Bill 2010 was developed and March 2009 to modernise industry standards and operations. The Bill has been »» Releasing a public discussion introduced into Parliament and will paper in July 2009 be debated in the final half of 2010. »» Conducting 25 public information sessions in 15 locations across Victoria in August and September 2009 – attended by 800 people »A» n invitation for public submissions, with over 400 received »F» ollow-up discussions in October and November 2009

31 Department of Transport Annual Report 2009-10 Priority Three: Ensure safety for all transport users Ensure safety for all transport users

DOT aims to provide a transport Safer trains and trams system which is safe and Fifty extra transit police have begun patrolling the network bringing the accessible for all users. In total number to 250. An $8 million digital upgrade of CCTV at train 2009-10, works were carried stations is now complete. Stations upgraded to premium status in out to improve the rail network’s 2009-10 include Ferntree Gully, Noble resilience to bushfires and Park and Nunawading. Funding to upgrade a further 20 stations to heat-related issues and premium status was announced as upgrades continued to improve part of the 2010-11 State Budget. accessibility across the public Taxi safety The $4 million Taxi Rank Safety transport network. program aims to create a safer environment for taxi drivers and passengers. It allows councils to bid for funding to upgrade taxi infrastructure such as CCTV, lighting, shelters and seating.

The first round of funding, announced in May 2010, issued $980,000 in grants to 13 councils.

This program complements the Safe Taxi Audit which inspected all Victorian taxis to ensure they were safe and clean. Completed in December 2009, the audit found only 38 per cent of taxis were compliant in the first round of inspections. This resulted in more than 200 notices being issued and over 16 illegal taxis taken off the road. Compliant taxis are now identified via new, green Accredited Taxi Service number plates. Transport Safety Victoria On 1 July 2010, Public Transport Safety Victoria became Transport Safety Victoria (TSV).

TSV is charged with the responsibility of regulating the safety of Victoria’s maritime, bus, rail and tram services.

The changes are an outcome of the Transport Integration Act, which establishes a new framework for the provision of an integrated and sustainable transport system in Victoria. Marine Safety Victoria is to become Transport Safety Victoria Maritime Branch.

33 Department of Transport Annual Report 2009-10 Bushfires Accessibility and Implementing the social transit agenda Bushfire preparation social transit The social transit agenda aims to In 2009-10, DOT and public transport Disability Discrimination Act improve uses of existing transport operators strengthened their 1992 compliance systems and identify new ways of arrangements to manage service To make public transport more providing services to people who disruptions caused by bushfires accessible for all Victorians, DOT experience transport disadvantage. and heat-related issues. An asset continued a program of work in DOT has focused on improving vulnerability assessment was 2009-10, including: conducted following the previous access to services, the objectives fire season and a number of »» Upgrades to over 1,500 bus of the DDA legislation as well as infrastructure improvement projects stops around Victoria continuing work on compliance. This will impact on the prioritisation and have been undertaken to improve the »» Infrastructure upgrades at packaging of works programs. resilience of the rail network. regional railway stations including Clarkefield, Melton and In addition: Highlights from 2009-10 include: North Geelong »» V/Line removed vegetation and »» Developing guidelines for the »» Platform and ramps upgrades other fuel hazards around regional design of accessible bus stop and at metropolitan railway stations rail assets platform tram stops including Edithvale, Glenbervie »» VicTrack carried out fire prevention and Rosanna »» Developing a Scooter and works, including the establishment Wheelchair Travel Pass for »» The installation of new platform of perimeters around railway implementation in 2010-11, to tram stops and preparations for crossings and disused railway lines support independent travel for the procurement of 50 new Victorians with a permanent »» Metro has doubled the level of low-floor trams and severe disability who are investment to manage vegetation dependent on the use of scooters DOT also participated in an audit of and minimise the risk of ignition or wheelchairs and spread of fires the Victorian Government’s progress towards compliance with the DDA in »» Undertaking a review of the Public »» DOT and the Department of 2009. The audit found that DOT had Transport Advisory Committee, Education and Early Childhood been largely successful in complying leading to the appointment of Development (DEECD) have created with the disability standards for most a new independent chair a joint protocol for school bus parts of the public transport system. management during an imminent As part of its efforts to improve or actual bushfire emergency Multi Purpose Taxi Program transport access for all Victorians, DOT continued to work with not- The Multi Purpose Taxi Program for-profit organisations such as the (MPTP) provides subsidised taxi Victorian Council of Social Services transport for Victorians with severe (VCOSS), Victorian Community and permanent disabilities who are Transport Association (VCTA), unable to access public transport. Traveller’s Aid and other government During 2009-10, over 4.3 million trips agencies such as the Department were made utilising the MPTP, a 2.6 of Planning and Community per cent decrease on 2008-09. Of Development and the Department the total MPTP trips in 2009-10, over of Human Services in 2009-10. 690,000 trips were made by wheelchair accessible taxi (WAT) users, a 7.6 per cent increase on 2008-09.

To improve taxi services for WAT users, the performance-based booking system for WATs was successfully introduced with major network service providers in 2009-10. The release of 330 additional WAT taxi licences announced in June 2010 will ensure that people with mobility issues can access taxi services more easily.

34 Inner Melbourne Hospital Security and Emergency Metropolitan Transport Map and Guide Management Security Precincts In June 2010, 50,000 copies of the A key role for DOT as the manager Inner Melbourne Hospital Map and Rail Network Emergency of Victoria’s public transport system Guide were printed and distributed Response Vehicles is to ensure that people remain safe in regional Victoria. Aimed at Victoria now has 12 Rail Network and free from risk when using its assisting regional and rural Victorians Emergency Response Vehicles networks and that its infrastructure when travelling to inner Melbourne (RNERVs) located at stations along continues to operate safely. for medical services, it highlights Melbourne’s underground rail loop Following on from DOT’s Transport public transport routes from and other strategic locations. The Safety Precincts 2008-09 pilot Southern Cross Station to 14 inner vehicles are used in emergencies to program focused on Southern Cross Melbourne hospitals. It also contains ferry emergency personnel and aid to Station, in 2009-10, the department supplementary information like the scene of an incident. Nine of the established two more precincts transport subsidies and concessions, vehicles were purchased in 2009-10. support services and transport at the Box Hill railway station/bus ticketing information. To test the vehicle’s capability, interchange and at Flinders Street a simulated emergency exercise Station/ Square. – Exercise Orpheus – was held in The key stakeholder groups involved April 2010. In the exercise, a major in managing the precincts include emergency was constructed based Victoria Police, rail operators, on a train stranded between Flagstaff facility managers, shopping complex and Melbourne Central Stations. operators, major stadium managers, To test their performance and emergency service organisations, suitability, the response vehicles municipal councils and DOT. were sent from both stations, transporting emergency services Following a risk assessment of personnel from Victoria Police, the precincts, the committee has Melbourne Fire Brigade and developed an agreed work program Ambulance Victoria. that identifies how to minimise and respond to a range of security risks. Feedback from the participating agencies indicated satisfaction National Surface Transport with the outcome of the trial. Security Strategy In 2009-10, DOT led a work group from the Standing Committee on Transport tasked with developing the National Strategy for Surface Transport Security.

The strategy was designed to complement the existing national counter-terrorism policy and arrangements and it was approved by the Australian Transport Council in late 2009.

The work group will now use the strategy to refine the 2010 priorities for the security work program it is preparing for all national .

35 Department of Transport Annual Report 2009-10 Transport critical infrastructure DOT continues to work with other protection arrangements jurisdictions and the rail industry on resolving the national approach DOT continued to sponsor and lead to managing key policy areas, such the Security and Continuity Network as drug and alcohol controls, forums for public transport and roads fatigue management and general and ports. safety duties.

The forums connect government Until an agreement is reached, with industry and focus on sharing Victoria will continue to rely on the information about transport security, Office of the Chief Investigator to business continuity and emergency conduct transport and marine management. safety investigations. The forums have created many new Port Safety and Environment networks for stakeholders and in Management Plans review 2009-10 allowed DOT to contribute to and gain from regular briefings on The Victorian Government announced risk while also receiving updates on the intention to formally review national security initiatives. the Port Safety and Environment Management Plan (SEMP) in August Access to advice from a broad range 2009 when it released Port Futures. of government and industry experts has helped to build awareness of Now complete, the review current security issues within DOT – demonstrates the ongoing leading to better informed decision commitment to continuously making within the department. evaluate and build on knowledge For example, the transport forum gained when applying SEMP allowed DOT to gather comprehensive requirements and recommendations industry input to Victoria’s Critical made by other related reviews. Infrastructure Protection Review. A full report is expected in late 2010. In total, the SEMP review made 10 recommendations that focused National rail safety regulator on five key issues: and investigator »» Duplication of compliance In December 2009, COAG agreed requirements to establish a single national rail »» The importance of SEMPs for safety regulator by 2012 to introduce local ports consistent regulation for interstate rail operators. »» A need to streamline certification and audit processes COAG also agreed to expand the reach of the Australian Transport Safety »» Cooperation between port Bureau, allowing it to investigate rail managers, tenants and port users accidents anywhere in Australia. »» Cooperation and information sharing between DOT and DOT and the Victorian transport port managers ministers have consistently supported the development of best practice DOT will implement and finalise its models for these reforms, which focus response to the recommendations on creating regulatory consistency in 2010-11. and rail safety benefits.

36 Legislation Transport Legislation Marine Safety Bill 2010 Amendment (Hoon Boating and Other Amendments) Act 2009 In 2009-10 DOT conducted a review of the Marine Act 1988 with a view Scheduled to become law on 31 In response to concerns about to introducing a new marine safety December 2010, the Bus Safety Act dangerous and anti-social behaviour regulations scheme to reflect 2009 will consolidate and modernise by some recreational boaters, Victoria contemporary thinking about safety all previous bus safety regulations and introduced a hoon boating scheme – on the water. for the first time in Victoria. a first in Australia. The review was undertaken in The Act aims to ensure Victoria’s The new powers apply to recreational response to a range of changes in strong bus safety record continues. vessels which are being operated in the way Victorian waterways were a dangerous manner. coping with drought and increased The new laws are well timed given use by people. Victoria is now experiencing the The scheme is being introduced largest expansion of its bus network in stages: Specifically, the review considered: in decades, with significant increases in patronage on both metropolitan »» An embargo notice scheme, »» Sustained growth in all vessel and regional bus services. commenced on 17 December 2009, traffic types allows for vessels to be embargoed »» Reduced availability of inland for up to 48 hours and individuals to Four key issues are addressed by waters due to drought be prohibited from using vessels for the Act: causing congestion up to 24 hours »» Introducing OH&S-style safety »» A new generation of waterway »F» rom September 2011 the hoon duties on operators and all users, equipment and boating laws will mirror road safety industry participants who can waterway uses influence safety hoon laws with powers to seize and impound recreational vessels and »» Significant increase in the number »» Establishing a simpler accreditation seek forfeiture of incidents and injuries scheme – with a focus on safety »T» o complement these provisions, »» The need to modernise the existing »» Requiring unaccredited operators general enforcement activity has regulatory framework which was of buses to be registered, such as been increased, with double the over 20 years old operators in the community sector number of infringement notices or servicing private schools, or on issued over the 2009-10 summer Based on the outcomes of the review, services that rely exclusively on months. Anecdotal evidence a new Bill has been prepared and was minibuses with 10-12 seats suggests this general enforcement due to be introduced into Parliament »» Equipping the safety director activity combined with the new in August 2010. laws have acted as a deterrent to with an array of contemporary If passed, commencement of the new bad behaviour enforcement powers and sanctions marine safety reforms is planned for »» Changes to the Crimes Act 1958 1 July 2011. extending the road offences of culpable driving causing death and dangerous driving causing death or serious injury to the boating and commercial shipping sector also commenced on 17 December 2009

37 Department of Transport Annual Report 2009-10 Marine Safety Victoria Marine Safety System Summer Safety Education Officers for recreational boaters Responsibilities MSV has developed a sophisticated new database that will allow marine As part of a Summer Safety Campaign Marine Safety Victoria (MSV) is authorities to access new complex aimed at educating Victorian boaters responsible for the administration data in real-time. during the summer boating season of the Marine Act 1988 and the six safety education officers were Marine Regulations 2009. Its core Detailed analysis of marine incidents, employed to engage with and educate functions are: vessel and operator compliance, recreational boaters. enforcement and Victorian waterways, »T» o manage and coordinate is now possible in real-time for The officers interacted with 2,769 boat pollution response in state waters officers in-field. operators throughout the campaign, »» License, register and giving advice and highlighting: accredit operators The system is used to make evidence- based decisions that assist with »» The importance of »M» onitor and enforce for compliance education strategies, policy and wearing lifejackets regulation. Also, spatial analysis of »» Educate for safety »» Having compulsory emergency incident data assists with managing safety equipment on boats »» Research, collect and analyse risk in Victorian waterways and allows safety information for Victoria Police to capture marine »W» ays to ensure the safe incident details. operation of vessels »M» aintain constructive relationships »» Hoon boating legislation with our stakeholders in The marine safety system can: government, industry and the »» Licensing and registration »» Access recreational licence wider community requirements and vessel registration details Operating environment immediately Seminar series Victoria has around 1,200 kilometres »» Access historic information on During 2009-10, a series of 30 of ocean coastline and 2,100 square vessels and operators seminars were held state-wide kilometres of inland and enclosed »» Capture audit information and covered boating safety topics, waters, comprising approximately regarding compliance including vessel maintenance, 8,000 waterways. navigation, hazards on inland »» Identify a GPS location and waterways, weather interpretation Maritime activity in Victoria present this geospatially on and fires on houseboats. encompasses: a map of Victorian waterways Feedback from seminar attendees »» 1,500 commercial vessels – »» Identify waterways and list the indicated the initiative has improved boats, ferries, tugs, fishing vessels, safety equipment required for boater safety awareness and their water taxies, hire and drive boats specific types of vessels vessel maintenance and navigation »» 165,000 registered powered A mobile application is currently skills. New opportunities to improve recreational vessels being developed which will deliver the sessions and provide new »» 330,000 licensed recreational these functions in the field. topics were also identified through boat operators participant feedback.

38 Marine survey Also on Western Port, Volunteer These principles are consistent with Marine Rescue (VMR) Mornington National Standard for Commercial From October 2010, amendments received $233,500. This funding will Vehicles Part E – operational practices to the fire section of the Uniform significantly reduce the number of – which is also the measure of Shipping Laws Code will require all vessels-in-distress that have to wait compliance for commercial operators Victorian boats to comply with national for rescue when on Western Port in achieving relevant and effective standards. Another change to the code during the peak boating season. safety and emergency procedures. will require all boats to have fixed fire Recent data shows that over 180 extinguishing systems onboard. search and rescue operations are This program has been assessed conducted on Western Port annually. by the independent DOT Audit and Boating Safety and Assurance Branch as being both Facilities Program Safety Management Systems appropriate and comprehensive. In 2009-10, the Boating Safety and The Operational Safety Program was In 2009-10 a range of communication Facilities Program allocated over initiated in August 2009 and covers: $652,000 in funding to cover the cost tools and mechanisms were used to of replacing three critically needed »» Safety Management Audit improve the community’s understanding marine rescue vessels. and Assurance of MSV. Some new materials now on MSV’s website include: »» Communication and Awareness The Australian Volunteer Coast »» A new operational safety section Guard received $233,500 to replace »P» ort Safety and Environment their largest rescue vessel at Lakes Management Plans »» Safety management system Entrance. This flotilla provides services manual templates to the Gippsland Lakes and up to 30 The Regulatory framework for Safety »» Emergency procedure templates nautical miles into Bass Strait. Management Systems (SMS) has been structured to provide safety assurance Also, during the year, a four-page The Australian Volunteer Coast to the Director of MSV using principles bulletin and introductory CD was Guard at Hastings on Western Port of governance, risk management mailed to all commercial operators. received an $185,455 grant to replace and compliance. its 30 year old rescue vessel.

Recreational boating fatalities per 100,000 registered vessels

16 13.44 14

12 11.23

10 8.68 8.51 7.73 8.57 8.34 7.43 7.31 8 6.12 5.73 6 5.47 5.48 5.04 4.77 4.51 4 2.42 2.5 1.88 2.48 2

0 2009-10 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Note * 2009-10 Statistics are only to the 31 May 2010

39 Department of Transport Annual Report 2009-10 Priority Four: Improve the sustainability of Victorian transport Improve the sustainability of Victorian transport

In 2009-10, DOT commenced Supporting walking and work on a $5 million four-year cycling for transport trial of electric vehicles. This is Cycling strategy implementation During 2009, DOT developed just one of the ways DOT is principles for assessing cycling infrastructure as part of the focussing on providing more development of projects for other sustainable modes of transport. transport modes. VicRoads invested $19.5 million in building 11 kilometres of new bicycle routes in Melbourne and regional Victoria. A further $2.1 million was allocated to the provision of on-road bicycle lanes and off-road bicycle paths as part of the delivery of seven new major road projects, adding more than 28 kilometres of new bicycle routes to existing bicycle networks. A new shared cycle and pedestrian bridge across Merri Creek between Westgarth and North Fitzroy – part of a pipe bridge upgrade by Melbourne Water – is now complete.

Off-road bicycle paths have been completed along Hyde and Whitehall Streets to Footscray Road, Yarraville, and from Acland Street, St Kilda, to Albert Park.

On-road bicycle lanes have been introduced on the Northern Highway in Kilmore.

In addition, DOT is implementing its policy for integrating cycling with public transport.

41 Department of Transport Annual Report 2009-10 Melbourne Bike Share Also during 2009-10, all 45 projects Transport Connections Program in the TravelSmart Program were Melbourne Bike Share was launched completed. This initiative develops DOT has continued to implement the on 31 May 2010, and is being operated and monitors travel plans for 100 Transport Connections Program in by the RACV. Individuals can subscribe schools, 110 workplaces and a conjunction with the DPCD and other to the service for $2.50 per day, $8 number of local communities to government agencies. per week or $50 per year. Corporate assess behaviour change. In 2009-10 the Transport Connections subscriptions are also available and program delivered: all trips under 30 minutes are free. Funding of $600,000 was allocated The first 10 stations and 100 bikes to three projects to support »» 500 Victorian initiatives established were rolled out early with a total of reconstruction and recovery in affected through 32 projects 50 bike stations and 600 bicycles to townships after the February 2009 »» Consultation with 44,000 Victorians be in service by mid-2010. bushfires. Please refer to Assisting the Victorian Bushfire Reconstruction to identify local transport needs Bike cages at railway stations and Recovery Authority for more and solutions DOT installed a total of 21 new bike details on the projects. In 2009-10, the Transport Connections cages at metropolitan and regional Encouraging walking Flexible Fund delivered: railway stations in 2009-10. In 2009-10, DOT, in consultation »» Colac to summer The 21 new Parkiteer bike cages with multiple State agencies, local bus services create over 540 bike parking spaces government, the community sector »» A volunteer taxi service in and were installed at Bacchus and other stakeholders, developed the Wimmera Marsh, Berwick, Chelsea, Coolaroo, strategic policy directions for walking Cranbourne, Morwell, Noble Park, as a form of transport. The VicRoads »» Wycheproof to Swan Hill bus service Nunawading, Oakleigh, Reservoir, Bicycle and Pedestrian program »» Gough’s Bay to Mansfield Seaford, Sunshine, East Malvern, invested $2.5 million in delivering 89 bus service Ferntree Gully, Glen Waverley, projects which upgraded pedestrian Heidelberg, Kyneton, Melton, Moe, crossings and improved access for »» Omeo to Bright long distance Frankston and Doncaster Park pedestrians with disabilities. bus service and Ride. Metropolitan park and Greener vehicle options Parkiteer bike cages, delivered in ride upgrades partnership with Bicycle Victoria, Making Victoria an electric feature electronic card access and The Metropolitan Park and Ride vehicle-friendly location solar power supply. The addition of program offers drivers an option In 2009-10 DOT commenced work on 21 new cages in 2009-10 brings to park their car at easy to access a $5 million four-year trial of electric the total number of Parkiteer bike locations and then use public vehicles aimed a making Victoria an cages which have been installed at transport to travel to move around electric vehicle-friendly State. Victorian railway stations to 44. Melbourne. All Park and Ride car parks are built to Australian Nearly 200 representatives from the Local Area Access and Standards and include asphalt automobile manufacturing industry, TravelSmart Programs pavements, lighting, footpaths, recharge infrastructure providers, landscaping and CCTV for electricity distributors, data analysts In its fourth and final year of commuter security. allocating grants to improve access and fleet managers attended the for pedestrian and cyclists, the Local Park and Ride facilities were launch of the program. Area Access Program (LAAP) funded delivered at Cheltenham and Berwick, DOT received 76 submissions for the 10 new projects and seven others and carpark construction commenced trial which is set to begin in late 2010. received construction grants. at Laverton and Hoppers Crossing. An expert reference group comprising The new projects will install lights individuals from across government on shared paths, improve safety for considered the submissions and cyclists and pedestrians and give drafted the design of the trial. pedestrians priority around activity centres and at transport interchanges.

42 The trial design is being finalised Reducing Victorian Government Climate change risks but is expected to include around 60 fleet emissions to infrastructure electric vehicles, with charging points to be installed in homes, businesses To ensure the Victorian Government’s In 2009-10 DOT commenced and public locations in Melbourne. leadership on reducing emissions an update of risk assessments Victorians will be given a chance to from private passenger vehicles, aimed at obtaining comprehensive trial a car through a selection process DOT is developing an emissions target and consistent analyses of the conducted by RACV. for the government’s own fleet in implications of expected climatic consultation with the local automotive changes for transport operations In parallel, DOT conducted analysis to industry. This is to ensure that an and assets from each area of the determine which Victorian households appropriate scheme is developed that transport portfolio. This work will are best suited to test the electric supports the local manufacturing provide a better understanding of vehicles and where recharging outlets industry in producing vehicles with the costs of assets and activities to should be positioned for easy access. lower emissions. A target methodology manage risks associated with climate is being developed and is expected to change impacts. This includes both Reducing fuel use through be implemented in 2010-11. the costs of new, retrofitted and smoother driving replacement infrastructure as well Carpooling as implications for maintenance The Victorian and South Australian budgets and emergency responses. governments are jointly conducting The Victorian Transport Plan allocated eco-driving fleet trials. The trials $5.4 million to increase vehicle are being used to identify the most occupancy rates. This includes a Protecting our coastlines effective ways to train people to drive range of initiatives to encourage and waters more fuel efficiently. Once this is carpooling in locations where traffic understood, an eco-driving awareness and parking congestion are an Marine pollution response campaign will be launched to educate issue, delivered primarily through Marine Safety Victoria continued drivers in both states. It is estimated workplaces and schools. its focus on building the skills and that people who drive cars in an Established in 2009 Access resources needed to respond to a economical way can reduce fuel high-risk marine pollution incident consumption by up to 20 per cent. Melbourne, became Victoria’s first Transport Management Association and knowledge on how to reduce the impacts on coastlines and waters. DOT is collaborating with the South (TMA). Access Melbourne is a network Australian Department for Transport, of employers in the Melbourne CBD, A range of specialised oil spill Energy and Infrastructure to conduct Docklands and Southbank working management training courses were the trials and manage the campaign. together to make Melbourne a held to identify Victoria’s diverse range better place to get around. A range of native wildlife and flora potentially Light Vehicles Fleet of services have been developed for at risk if an incident occurred. Emissions Program members, including a carpooling program to be launched in early Victoria’s Light Vehicles Fleet In 2009-10, Victoria was called on 2010-11 for employers in Docklands, Emissions Program, based on New to support the national response to and then rolled out to the CBD South Wales’ FleetWise program, the Montara wellhead oil spill off the and Southbank. is a framework for reducing west Australian coast. This required emissions from commercial light- the re-establishment of the National vehicle fleets. The program will be Climate change Response Team. The incident gave the team experience in the challenges used as a benchmark for improving Climate Change White Paper environmental outcomes within involved while providing insight into the transport sector. The Victorian Government’s Climate the containment effort required to Change White paper, being developed protect a fragile marine environment. In addition, DOT coordinated the through a process coordinated by the group tasked with developing a plan to Office of Climate Change, includes implement this program nationally. It inputs from across the Victorian is now one of five transport measures Government. In 2009-10 DOT led the in the National Strategy on Energy transport portfolio’s involvement to Efficiency, endorsed by the Australian ensure the transport-related challenges Transport Council in April 2010. and the implications of climate change were taken into account.

43 Department of Transport Annual Report 2009-10 Priority Five: Build a collaborative and effective organisation Build a collaborative and effective organisation

DOT is building a collaborative Intergovernmental and effective organisation to help Relations DOT works closely with the deliver its projects, services and Australian Government, other State and Territory Governments and policies more effectively. We work local government on national policy, with the public, stakeholders and regulatory and infrastructure planning and investment issues. other levels of government. In Infrastructure Australia addition, we streamline business Victoria lodged its second submission processes to improve efficiency to Infrastructure Australia (IA) on 30 October 2009, focusing on projects to and create a better place to work. dramatically reshape Victoria’s freight network and build the capacity of its international transport gateways.

The submission updated progress on the Regional Rail Link and the Melbourne Metro Rail Tunnel funded by $3.2 billion and $40 million respectively in the 2009-10 Federal Budget.

Victoria’s submission also included an update on Victoria’s priority projects for the National Land Transport Network for the next round of funding under the Australian Nation Building Program. These projects focus on infrastructure development from 2014 onwards.

The submission also highlighted the importance of Victoria’s commercial ports, especially the Port of Melbourne, to the national economy.

It outlined a clear strategy to increase capacity and drive efficiencies at our ports.

Specifically, WestLink and the Truck Action Plan were two projects identified as critical to increase efficiencies at the Port of Melbourne.

45 Department of Transport Annual Report 2009-10 The other major freight and port-related Nation Building Program Murrindindi Shire Council: projects featured in the submission Kinglake and Flowerdale Ranges include the development of: In partnership with VicRoads, Pathways Projects VicTrack and local government, DOT »» New intermodal freight terminals began work to deliver a number of The investment will deliver two in Melbourne’s north, west and projects allocated funding under the shared, off-road pathways to facilitate south east Nation Building Program. safe walking and cycling linkages in the Kinglake and Flowerdale »» Planning for the Port of Hastings, DOT and VicRoads will continue to Ranges. It is hoped the separation of including rail freight connections deliver these projects in 2010-11 and pedestrians and cyclists from vehicles »» Road and rail projects in the continue to advocate for Australian will encourage residents to participate Green Triangle Region in Victoria’s Government funding for future nation in walking and cycling activities. south west building projects across Victoria. The Australian Railway Monument »» ‘Smart projects’ – involving the best Assisting the Victorian of new technology – to make better Bushfire Reconstruction and The Australian Railway Monument, use of existing infrastructure Recovery Authority located at Werris Creek, New South Wales, honours the major contribution Australian Transport Council DOT has been working in made by the railway industry, its partnership with Mitchell Shire employees and contractors to DOT continued its work with the Council and Murrindindi Shire Australia’s development and in Australian Transport Council (ATC) Council to oversee the delivery of particular, those who lost their lives on creating an integrated national three projects funded through the at work. approach to transport reform Local Area Access Program (LAAP). and urban development aimed These projects received a total DOT is working to identify the names at maintaining and improving funding allocation of $600,000 of Victorian rail workers killed safety standards, productivity and through the program’s funding between 1853 and 2010. Once the investment growth. stream to support reconstruction list is complete, each person’s name after the 2009 bushfires. will be inscribed on the monument to DOT is taking the lead on two key honour their significant contribution areas to assist the ATC with its Mitchell Shire Council: to Australia’s railway network. national reform agenda by: The Say Gidday Trail In 2009-10, research identified over »» Developing National Guidelines for The investment will deliver one of 750 recorded deaths on Victorian Passenger Transport and Land Use the missing links in the Wandong railways and over 2,000 names are Planning Integration, now endorsed path network linking Rail Street in expected to be found. The project is by the ATC. These guidelines will Wandong to North Mountain Road in expected to finish by June 2011. assist all states and territories to Heathcote Junction. Improved local develop strategic plans for capital connections will encourage walking cities that integrate transport and cycling for recreation and for systems and urban land use access to services. »T» aking the lead in providing advice to the ATC on urban congestion and working collaboratively with the Australian Government to ensure that our cities have strong, transparent and long-term plans for growth and high-quality urban development, in which public transport plays an important role

46 Business and Information management, Transition of service to the Executive Services security and records Shared Service Provider In August 2009, a major upgrade In December 2009, DOT began Fraud and Corruption Framework to DOT’s electronic document and the transfer of its facilities, DOT’s culture promotes transparency, records management system was accommodation, carpool and library accountability and integrity. It does completed and now features simple services to the Whole of Victorian not tolerate improper, dishonest and tools to save, manage and secure Government Shared Service criminal conduct. corporate records. Provider (SSP).

In 2009-10 and after extensive In May 2010, DOT won the Sir Rupert The SSP is providing a range of consultation, the Fraud and Corruption Hamer Records Management Award – shared corporate services across Control Framework was introduced Large Agency Category for excellence all departments and key agencies to recognise the significant role DOT in delivering the Spotswood Documents and is being managed by the people play in the prevention, detection and Records Exit Project. Department of Treasury and Finance. and reporting of dishonest activity. Property services All DOT people and their positions involved in this transition are now The framework is in place to DOT collaborated with a number of employed at the SSP. reassure DOT people and the wider other organisations to deliver a wide community that any legitimately range of property services in In April 2010, management of suspected or actual dishonest activity 2009-10 including: DOT’s library services was also will be investigated appropriately and transferred to the SSP. resolved fairly. »» Property valuation and land acquisition advice for the DOT intranet Throughout the year, DOT people and Regional Rail Link and Melbourne contractors attended fraud awareness Metro projects In 2009-10, DOT upgraded its training. This training is being intranet and made significant »» Consulting affected landowners incorporated in the DOT induction progress in replacing its web for the West Werribee to Deer program for all new employees. content management system. Park section of the Regional Full implementation of the new Rail Link project system is due at the end of 2011. »» Acquiring land at locations The new web content management including Marshall, Lynbrook, system will enable DOT to create Craigieburn and Rockbank for and publish content online with major projects greater ease and take advantage of new web publishing features »» Acquiring property on behalf and technologies. of the Department of Planning and Community Development at Footscray, Ringwood, Broadmeadows and Geelong, and the City of Latrobe at Moe

47 Department of Transport Annual Report 2009-10 People and Organisational Development Enabling DOT and its people The early part of 2009-10 saw the settling of the organisational structure of DOT to best meet its delivery priorities. This involved People and Organisational Development providing strategic advice on change management and a range of technical and support services. This has enabled successful completion of a number of internal divisional realignments, and the amalgamation of the former Commercial and Infrastructure Projects Divisions to form the new Transport Projects Division.

DOT has continued to develop as a values-based organisation with a focus on ethical leadership, thoughtful management, respectful behaviour and inclusiveness and has continued to be profiled as an effective and collaborative organisation.

48 Demonstrating leadership Supporting and developing people Developing a collaborative DOT In 2009-10, DOT won the Diversity@ Initiatives that helped DOT to support »» DOT’s Communities of Practice Work Award for Employment and and develop its people included: which share information and Inclusion of People with a Disability expertise across the organisation »» Continuing to recognise people – Large Organisation. in areas as diverse as project through the DOT Inspirational management, data analysis It also demonstrated leadership in People Awards and communications the Victorian Public Service (VPS) »» Continuing to develop people Developing DOT’s future and the transport sector through: through coaching and mentoring In early 2010, DOT’s leadership »» Repositioning the Victorian Public »» Ensuring all learning and considered a major report from Service Continuous Improvement development offerings are aligned P&OD on the current workforce and Network to better align with the with DOT’s business requirements organisational dynamics. The ensuing whole-of-government agenda and are delivered in different ways discussion among senior leaders to those we have traditionally been »» Leading the establishment of the across DOT, further influenced by familiar with inaugural Leadership and Talent the Transport Integration Act, led to Management Network across the »» Developing the Leadership and the adoption of a process designed to VPS to ensure knowledge is shared Management Development Strategy further develop DOT’s future through: and leveraged across departments and smaller agencies »» Piloting the 360 degree feedback »» Strengthening collaboration across instrument, and adding value to DOT and further tapping into the »» Developing the Women Leading DOT through building in-house creativity of its people Transport Strategy across the capability of specialist 360 degree »» Strengthening leadership across transport portfolio feedback debriefers the organisation and transport »» Hosting the graduate program »» Developing the Diversity and portfolio to ensure the transport across government Inclusion Strategy vision is shared across the portfolio, industry and community »» Establishing the Fair Treatment, Access and Equity branch to ensure »A» ccelerating leadership development respectful behaviour is supported to mitigate against succession and championed through Alternative risks and safeguarding business Dispute Resolution and zero- critical capabilities bullying target As at June 2010, a series of »» Reviewing all people policies for workshops had been held with DOT alignment with DOT’s business people to identify critical issues and needs and values provide briefings on the impact of the »D» eveloping a revised Occupational Transport Integration Act on how Health, Safety and Wellbeing DOT will need to work in the future. Strategy to meet new national legislative obligations »» Establishing and progressing the work of the People Matters Group – a group which continues to influence DOT as a values-based organisation »» Revising and implementing the new Performance Management System

49 Department of Transport Annual Report 2009-10 Victorian Rail Crossing Safety Steering Committee: Annual Report Victorian Rail Crossing Safety Steering Committee

The VRCSSC is chaired by the The Victorian Railway Crossing Department of Transport (DOT) Safety Steering Committee with representatives from VicTrack, Victoria Police, VicRoads, V/Line, (VRCSSC) was established Municipal Association of Victoria (MAV), Transport Accident in 2005 to advise and make Commission (TAC) and the Rail, recommendations to the Minister Tram and Bus Union (RTBU). Highlights during the 2009-10 for Public Transport on policy, period include: management and standards for »» 44 railway crossing upgrades (41 level crossings and three road and pedestrian crossings pedestrian crossings) in Victoria. »» 28 Active Advance Warning Signs (AAWS) »F» our accessibility upgrades »» The launch in November 2009 of Towards Zero: A Strategy for improved Level Crossing Safety in Victoria

The following four groups work on behalf of the VRCSSC to support management of railway crossing safety programs; research into road-user behaviors; trials of new technologies, and rail safety awareness campaigns: »» Railway Crossing Program Delivery Group »» Railway Crossing Technical Group »» Railway Safety Awareness Group »» Railway Crossing Human Factors Group

51 Department of Transport Annual Report 2009-10 Strategy »» National Rail Level Crossing Safety In 2009-10, over 1300 crossings were Behavioural Initiative – endorsed ALCAM field surveyed and close to The VRCSSC developed Towards by the ATC in 2006, the initiative 500 site visits were conducted to Zero to improve safety and reduce aims to reduce illegal and unsafe investigate redundant, non existent deaths and injuries at railway activity at railway level crossings or illegal crossings. crossings. The scope of the strategy and reduce the number of vehicle covers all at-grade public road and collisions and pedestrian collisions Level Crossing Upgrade Program pedestrian crossings on railway lines at level crossings by 30 per cent The Level Crossing Upgrade Program in Victoria. Ultimately, the strategy over five years. was allocated $38.3 million of aims to reduce to zero the lives lost funding in 2009-10, which included The Towards Zero strategy document at railway crossings. $20.2 million from the Australian will be regularly reviewed, updated Government’s: Boom Gates for Rail Level crossing safety remains a and informed by external sources Crossings Program. The funding was shared responsibility, with Government like interstate agencies, international invested to cover: and the community working together to research, parliamentary inquiries reduce risk. Developed in consultation and bodies, community feedback and »» $28.2 million – level with major stakeholders, Towards Zero technological developments. crossing upgrades urges the community to play its part »» $7.5 million – AAWS and drive more safely. The following Program delivery government policies and initiatives »» $1.1 million – research informed the strategy: Australian Level Crossing and development Assessment Model »» The Victorian Transport Plan – »» $1.1 million –ALCAM a $38 billion plan to transform Australian Level Crossing Assessment »» $0.4 million – level Victoria’s transport network with Model (ALCAM) is a risk-based crossing closures more trains and trams, more train methodology used to assess accident- risk likelihood at railway crossings. The tracks and stations, better roads A listing of level crossing safety resulting assessment model captures and more transport choices. Some upgrades and Active Advance Warning accident risk likelihood, probability and initiatives of The Victorian Transport Signs (AAWS) installed appears at consequence data that is used to rank Plan include $100 million for level Appendix One. crossing upgrades and $440 million railway crossing upgrade priorities for for a grade separation program. the ongoing Level Crossing Upgrade Program. Road and pedestrian »» Freight Futures – Victoria’s long- crossings on operational rail lines are term strategy for an efficient and field surveyed on a once-every-five- sustainable freight network. year basis. »» arrive alive 2008-17 – aims to reduce road crash-related fatalities The initial ALCAM field surveys and serious injuries. completed in December 2007 identified in excess of 20,000 issues »» National Railway Level Crossing at railway crossings. Around 93 Safety Strategy – approved by the per cent were ranked low-risk and Australian Transport Council (ATC) related to non-compliant road and rail in 2003, the strategy supports cost- signage and road markings. Routine effective ways to reduce the number maintenance works are expected to and the level of trauma when trains resolve these low-risk issues. The and road users collide. remaining seven per cent of issues require long term planning, solutions and prioritisation such as queuing, short-stack and sight visibility limitations. DOT aims to complete a works plan to resolve these more complex issues by December 2010.

52 Technical »» Axle Counter Technology Level Safety awareness Crossing Warning Device – research In 2009-10, the Railway Crossing into the use of axle counter The Safety Awareness Group Technical Group (RCTG) developed technology as a new level crossing supported a range of activities to raise a standardised and robust process detection device began following awareness of railway crossing risks in for evaluating new technologies. an AAWS upgrade at Midland 2009-10, including a continuation of It uses a type approval process Highway, Bagshot. the Don’t Risk It campaign in Victoria. and assesses factors such as cost, In addition, the group facilitated »» Bodan Pedestrian Crossing Surface product, quality of research, risk, the adoption of a national media Trial – Bodan pedestrian crossing quality and cost-benefit. Specifically, advertising campaign that appeared surfaces were investigated to the group managed: in Victorian regional print media, compare its length of service life television and online sources. »» Pedestrian Crossing Warning and cost with an asphalt surface. Signal Trials – included studies A report will present the findings into the effectiveness of three new on the Bodan trial for review by Responses to external pedestrian crossing technologies the RCTG in July 2010. recommendations trialed at Centre Road, Bentleigh, to improve safety and to deter Human factors Recommendations about the illegal pedestrian crossings. A management of railway crossing detailed before and after study was The Human Factors Group began safety from external stakeholders carried out to assess the human defining the requirements of its are maintained by VRCSSC in a factors, cost-benefit, surveys, CCTV on going prioritised work plan in register of actions and responses. observations, near misses and 2009-10. In summary, the group’s Most recommendations follow relevant research articles for each focus for the year included: investigations into railway crossing accidents by other authorities like the technology. VRCSSC received the »» Coordinating support for an trials’ final report on 26 May 2010. State Coroner Victoria, Office of the ARC Linkage Grant into railway Chief Investigator Transport & Marine »» Another Train Coming Sign and crossing research Safety and the Australian Transport Red Standing Man Sign – the »» Defining the equirementsr for a Safety Bureau. The register is effectiveness of the Another level crossing research resource reviewed quarterly and on an on going Train Coming sign was evaluated basis until each entry is resolved. and found to help pedestrians »» Supplying human factors advice understand that another train was and input to railway crossing On 15 October 2009, the State coming. However, the assessment projects and trials being run by Coroner’s Office advised the VRCSSC concluded the initial cost outweighed member organisations of its intent to hold three directional the benefits. Similarly, the RSM hearings to consider 29 outstanding assessment found cost outweighed potential level crossing fatal inquests the benefits. at 15 locations; dating back to 2002. Also, the Kerang and Trawalla Emergency Escape Gate Latches »» – Inquests were heard by the State a ‘before and after’ assessment Coroner on the 3 May 2010. of the latches found they reduced illegal access to a pedestrian In addition, the VRCSSC considered crossing. The VRCSSC now the following reports on level recommends the installation crossings in 2009-10: of this control at new active pedestrian crossings.

Report Date Report Released Commissioned Fatality at the Mitcham railway station pedestrian crossing 12 October 2007 29 July 2009 4 August 2009 Level crossing collision at Edithvale 15 July 2009 1 February 2010 29 August 2009 Management of safety at level crossings – 24 March 2010 11 August 2009

There were no recommendations made by the Australian Transport Safety Bureau into railway crossing accidents and no Safety Advisory Notices were issued.

53 Department of Transport Annual Report 2009-10 Appendix One – Level crossing safety upgrades and AAWS in 2009-10 Level Crossings Safety Upgrades 2009-10

No Site Treatment Commissioned 1 Middle Creek Rd, Middle Creek Passive to Boom Barriers 5 March 2010 2 Smith’s La, Beaufort Passive to Boom Barriers 18 May 2010 3 Cockpit Lagoon Rd, Burumbeet Passive to Boom Barriers 13 April 2010 4 Calder Alternative Hwy, Marong Flashing Lights to Boom Barriers 1 July 2009 5 Inverleigh – Winchelsea Rd, Winchelsea Flashing Lights to Boom Barriers 2 July 2009 6 Settlement Rd, Kilmany Passive to Flashing Lights 7 July 2009 7 Friends Rd, Rosedale Passive to Flashing Lights 7 July 2009 8 Seymour St, Terang Passive to Flashing Lights 7 July 2009 9 Bundalaguah Rd, (Montgomery Rd), Montgomery Flashing Lights to Boom Barriers 8 July 2009 10 Maffra – Sale Rd, Sale Flashing Lights to Boom Barriers & AAWS 4 August 2009 11 Murray Valley Hwy, Kerang Flashing Lights to Boom Barriers & AAWS 11 August 2009 12 Murray Valley Hwy, Swan Hill Flashing Lights to Boom Barriers & AAWS 13 August 2009 13 Darlington Rd, Gnotuk Flashing Lights to Boom Barriers 5 October 2009 14 Cuthberts Rd, Camperdown Passive to Boom Barriers 5 October 2009 15 Bungaree – Wallace Rd, Wallace Flashing Lights to Boom Barriers & AAWS 21 February 2010 16 Cressy St (Camperdown – Lismore Rd), Camperdown Flashing Lights to Boom Barriers 11 November 2009 17 Napier St (Midland Hwy), Bendigo Flashing Lights to Boom Barriers & AAWS 24 February 2010 18 Mallee Hwy, Manangatang Passive to Boom Barriers & AAWS 21 December 2009 19 Mc Nairn Rd, Traralgon Flashing Lights to Boom Barriers 1 March 2010 20 Grahamvale Rd (Shepparton Alternative Route), Shepparton Flashing Lights to Boom Barriers & AAWS 30 June 2010 21 Dimdoola – Rainbow Rd, Dimdoola Flashing Lights to Boom Barriers 4 July 2009 22 Hamilton Hwy, Derrinallum Flashing Lights to Boom Barriers & AAWS 29 August 2009 23 Calder Hwy, Derby Flashing Lights to Boom Barriers & AAWS 8 September 2009 24 Calder Hwy, Teddywaddy Flashing Lights to Boom Barriers & AAWS 24 September 2009 25 Calder Hwy, Glenalbyn Flashing Lights to Boom Barriers & AAWS 12 October 2009 26 Flemings Rd, Inverleigh Passive to Boom Barriers 10 October 2009 27 Calder Hwy, Inglewood Flashing Lights to Boom Barriers & AAWS 25 November 2009 28 Geelong – Ballan Rd (Steiglitz Rd), Moorabool Flashing Lights to Boom Barriers & AAWS 14 November 2009 29 Harvey Rd, Murgheboluc Flashing Lights to Boom Barriers 5 December 2009 30 Foxhow Rd, Berrybank Flashing Lights to Boom Barriers 11 April 2010 31 Midland Hwy, Sulky Flashing Lights to Boom Barriers & AAWS 13 February 2010 32 Midland Hwy, Elaine Flashing Lights to Boom Barriers & AAWS 27 February 2010 33 – Serpentine Rd, Mitiamo Passive to Boom Barriers 1 July 2009 34 Raglan St, Sale Flashing Lights to Boom Barriers 4 August 2009 35 Sale – Heyfield Rd, Fulham Flashing Lights to Boom Barriers & AAWS 7 October 2009 36 Colac – Ballarat Rd, Irrewarra Flashing Lights to Boom Barriers & AAWS 11 April 2010 37 Beaufort – Packhams Lane Passive to Boom Barriers 18 May 2010 38 Rochester; Northern Hwy (Mary St) Flashing Lights to Boom Barriers &AAWS 26 June 2010 39 Rochester; Elizabeth St Flashing Lights to Boom Barriers 26 June 2010 40 Nagambie Racecourse Rd Passive to Boom Barriers 2 March 2010 41 Benalla; Benalla-Yarrawonga Rd Flashing Lights to Boom Barriers 28 June 2010 42 Blackwood St, Carnegie Maze to Pedestrian Gates 20 June 2009 43 Wallan Pedestrian Crossing (DeoP) Crib Crossing to Active Pedestrian Crossing 16 July 2009 44 Riversdale – Prospect Hill Road Pedestrian Gates X 2 22 April 2010

54 Active Advance Warning Systems 2009-10

No Site Treatment Commissioned 1 Maffra-Sale Road, Sale Flashing Lights to Boom Barriers & AAWS 4 August 2009 2 Hamilton Hwy, Derrinallum Flashing Lights to Boom Barriers & AAWS 29 August 2009 3 Murray Valley Hwy, Kerang Flashing Lights to Boom Barriers & AAWS 11 August 2009 4 Murray Valley Hwy, Swan Hill Flashing Lights to Boom Barriers & AAWS 13 August 2009 5 Calder Hwy, Derby Flashing Lights to Boom Barriers & AAWS 8 September 2009 6 Calder Hwy, Teddywaddy Flashing Lights to Boom Barriers & AAWS 24 September 2009 7 Calder Hwy, Glenalbyn Flashing Lights to Boom Barriers & AAWS 12 October 2009 8 Sale – Heyfield Rd, Fulham Flashing Lights to Boom Barriers & AAWS 7 October 2009 9 Surf Coast Hwy (Torquay Rd), Grovedale Active Advanced Warning System Only 15 October 2009 10 Bungaree – Wallace Rd, Wallace Flashing Lights to Boom Barriers & AAWS 21 February 2010 11 Calder Hwy, Inglewood Flashing Lights to Boom Barriers & AAWS 25 November 2009 12 Geelong – Ballan Rd (Steiglitz Rd), Moorabool Flashing Lights to Boom Barriers & AAWS 14 November 2009 13 Napier St (Midland Hwy), Bendigo Flashing Lights to Boom Barriers & AAWS 24 February 2010 14 Mallee Hwy, Manangatang Passive to Boom Barriers and AAWS 21 December 2009 15 Geelong – Ballan Rd, Ballan Active Advanced Warning System Only 31 January 2010 16 Tramway Rd, Morwell Active Advanced Warning System Only 5 June 2010 17 Barwon Heads Rd, Marshall Active Advanced Warning System Only 21 February 2010 18 Midland Hwy, Sulky Flashing Lights to Boom Barriers & AAWS 13 February 2010 19 Midland Hwy, Elaine Flashing Lights to Boom Barriers & AAWS 27 February 2010 20 Colac – Ballarat Rd, Irrewarra Flashing Lights to Boom Barriers & AAWS 11 April 2010 21 Wallan – Whittlesea Rd, Wallan Active Advanced Warning System Only 22 May 2010 22 Creswick Rd (Midland Hwy), Ballarat Active Advanced Warning System Only 10 June 2010 23 Midland Hwy, Bagshot Active Advanced Warning System Only 8 June 2010 24 Western Hwy (Barkly St), Ararat Active Advanced Warning System Only 1 May 2010 25 Grahamvale Rd Flashing Lights to Boom Barriers 30 June 2010 (Shepparton Alternative Route), Shepparton & AAWS 26 Calder Hwy, Merbein Flashing Lights to Boom Barriers & AAWS 12 May 2010 27 Donald, Sunraysia Hwy Active Advanced Warning System Only 9 June 2010 28 Rochester; Northern Hwy (Mary St) Flashing Lights to Boom Barriers & AAWS 26 June 2010

55 Department of Transport Annual Report 2009-10 Financial statements Contents Accountable Officer’s and Chief Finance Officer’s declaration...... 57 Victorian Auditor-General’s report...... 58 Comprehensive operating statement...... 60 Balance sheet...... 61 Statement of changes in equity...... 62 These financial statements for Cash flow statement...... 64 the year ended 30 June 2010 include the Department of Transport and these Notes to the financial statements...... 65 legal and statutory appointments: »» The Director of Public Transport »T» he Director, Public Transport Safety (statutory appointment) »» Chief Investigator, Transport and Marine Safety Investigations (statutory appointment)

The Department of Transport (DOT) is a Government department of the State of Victoria.

A description of the nature of DOT’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, or visit our web site www.transport.vic.gov.au. Accountable Officer’s and Chief Finance Officer’s Declaration

Department of Transport Accountable Officer’s and Chief Finance Officer’s Declaration

We certify that the attached financial statements for the Department of Transport have been prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions, Australian accounting standards and other mandatory professional reporting requirements. We further state that, in our opinion, the information set out in the comprehensive operating statement, balance sheet, statement of changes in equity, cash flow statement and notes to and forming part of the financial statements, presents fairly the financial transactions during the year ended 30 June 2010 and financial position of the Department of Transport as at 30 June 2010. We are not aware of any circumstance which would render any particulars included in the financial report to be misleading or inaccurate. We authorise the attached financial statements for issue on 17 August 2010.

Robert Oliphant Jim Betts Chief Finance Officer Secretary and Accountable Officer Department of Transport Department of Transport Melbourne Melbourne 10 August 2010 10 August 2010

57 Department of Transport Annual Report 2009-10 Victorian Auditor-General’s Report

58 Victorian Auditor-General’s Report (continued)

59 Department of Transport Annual Report 2009-10 Comprehensive operating statement for the financial year ended 30 June 2010

2010 2009 Note $’000 $’000

INCOME From Transactions Output appropriations 4(a) 4,461,524 3,961,399 Special appropriations 4(b) 1,303 1,819 Sale of transport services 5(a) 383,963 159,832 Grants and other income transfers 5(b) 133,578 129,077 Interest 2,032 2,362 Fair value of assets and services received free of charge or for nominal consideration 343 361 Other income 5(c) 5,755 3,088 Total income from transactions 4,988,498 4,257,938

Expn e ses from transactions Payments to service providers and transport agencies 6(a) (4,592,193) (3,830,155) Supplies and services 6(b) (178,327) (176,313) Employee benefits 6(c) (108,219) (99,990) Interest expense (32,119) (248) Capital asset charge (25,872) (23,049) Depreciation and amortisation 6(d) (19,903) (7,414) Fair value of assets and resources provided free of charge 6(e) (82) (88) Total expenses from transactions (4,956,715) (4,137,257)

Net result from transactions (net operating balance) 31,783 120,681

O ther eCONOMIC flows included in net result Net gains/(losses) on non-financial assets 7(a) (21,438) (3,655) Other gains/(losses) from other economic flows 7(b) (221) (553) Total other economic flows included in net result (21,659) (4,208)

Net result 10,124 116,473

O ther eCONOMIC flows – other non-owner changes in equity Changes in physical asset revaluation reserve(i) 21(c) 292,023 – Total other economic flows – other non-owner changes in equity 292,023 – Comprehensive result 302,147 116,473

(i) In the published 2008-09 financial statements there was an amount of $80.416M reported here. This item is reported also in the Statement of Changes in Equity and is not required to be reported here. The above comprehensive operating statement should be read in conjunction with the accompanying notes.

60 Balance sheet as at 30 June 2010

2010 2009 Note $’000 $’000

Asts e s Financial assets Cash and deposits 19(a) 525,752 383,318 Receivables 8 620,014 536,585 Total financial assets 1,145,766 919,903

Non-financial assets Prepayments 2,764 3,014 Property, plant and equipment 9 1,391,904 383,432 Intangible assets 10 32,688 25,231 Total non-financial assets 1,427,356 411,677 Total assets 2,573,122 1,331,580

Lib a iliTIEs Payables 11 779,113 520,888 Borrowings 12 385,116 11,674 Provisions 13 267,039 248,443 Total liabilities 1,431,268 781,005 Net assets 1,141,854 550,575

Equt i y Accumulated surplus/(deficit) 21(a) 362,021 351,882 Contributed capital 21(b) 415,765 126,633 Physical asset revaluation surplus 21(c) 364,068 72,060 Net worth 1,141,854 550,575 Commitments for expenditure 15 Contingent assets 16 Contingent liabilities 17

The above balance sheet should be read in conjunction with the accompanying notes.

61 Department of Transport Annual Report 2009-10 Statement of changes in equity for the financial year ended 30 June 2010

Changes due to transactions Total with owner in Equity at comprehensive its capacity Equity at 1 July 2009 result as owner 30 June 2010

Note $’000 $’000 $’000 $’000

Acc umulated surplus/(deficit) 21(a) 351,882 10,124 – 362,006 Transfer from physical asset revaluation surplus – 15 – 15 due to disposal of asset Transfer from physical asset revaluation surplus – – – – due to machinary of government changes 351,882 10,139 – 362,021

C uoNTrib tions by owners 21(b) 126,633 – – 126,633 Capital appropriations – – 1,357,086 1,357,086 Capital contributions to agencies within the – – (1,401,542) (1,401,542) Transport portfolio Administrative restructure – net assets transferred 3(i) – – 333,588 333,588 Capital contributions from other Victorian – – – – Government agencies 126,633 – 289,132 415,765

P chysi al asset revaluation surplus 21(c) 72,060 292,023 – 364,083 Transfers to accumulated surplus/ – (15) – (15) (deficit) for disposal of asset Transfers to accumulated surplus/ – – – – (deficit) due to machinary of government changes 72,060 292,008 – 364,068

Total equity at end of financial year 550,575 302,147 289,132 1,141,854

62 Statement of changes in equity for the financial year ended 30 June 2010 (continued)

Changes due to transactions Total with owner in Equity at comprehensive its capacity Equity at 30 1 July 2008 result as owner June 2009

Note $’000 $’000 $’000 $’000

Acc umulated surplus/(deficit) 21(a) 154,993 116,473 – 271,466 Transfer from physical asset revaluation surplus – – – – due to disposal of asset Transfer from physical asset revaluation surplus – 80,416 – 80,416 due to machinary of government changes 154,993 196,889 – 351,882

C uoNTrib tions by owners 21(b) 319,971 – – 319,971 Capital appropriations – – 1,419,477 1,419,477 Capital contributions to agencies within the – – (1,328,422) (1,328,422) Transport portfolio Administrative restructure – net assets transferred 3(iii) – – (292,698) (292,698) Capital contributions from other Victorian – – 8,305 8,305 Government agencies 319,971 – (193,338) 126,633

P chysi al asset revaluation surplus 21(c) 152,476 – – 152,476 Transfers to accumulated surplus/(deficit) – – – – for disposal of asset Transfers to accumulated surplus/(deficit) – (80,416) – (80,416) due to machinary of government changes 152,476 (80,416) – 72,060

Total equity at end of financial year 627,440 116,473 (193,338) 550,575

The above statement of changes in equity should be read in conjunction with the accompanying notes.

63 Department of Transport Annual Report 2009-10 Cash flow statement for the financial year ended 30 June 2010

2010 2009 Note $’000 $’000

Cash flows from operating activities Receipts Receipts from Victorian Government 4,382,409 3,967,255 Receipts from other entities 137,899 138,464 Sale of transport services 468,886 186,649 Goods and Services Tax recovered from the ATO 295,812 292,413 Interest received 2,032 2,362 Other receipts 7,236 3,088 Total receipts 5,294,274 4,590,231

Py a mENTs Payments to service providers and transport agencies (4,669,738) (3,905,822) Payments to suppliers and employees (302,915) (531,677) Goods and Services Tax paid to the ATO (38,988) (20,101) Capital asset charge (25,872) (23,049) Interest paid (21,770) (248) Total payments (5,059,283) (4,480,897) Net cash flows from/(used in) operating activities 19(c) 234,991 109,334

Cash flows from investing activities Payments for property, plant and equipment (61,393) (78,144) Payments for intangible assets (8,232) (6,002) Proceeds from disposals of property, plant and equipment 685 869 Cash received from activity transferred in 3(i) 5,714 – Cash received from activity transferred out 3(iii) – (42,432) Net cash flows from/(used in) investing activities (63,226) (125,709)

Cash flows from financing activities Owner contributions by Victorian Government 1,333,195 1,421,011 Payments of capital contribution to VicTrack (916,320) (876,511) Payments of capital contribution to other entities (448,418) (419,290) Repayments of finance lease liabilities (751) (667) Proceeds from loans and advances from Victorian Government 135,239 207,701 Repayment of loans and advances from Victorian Government (132,276) (361,757) Net cash flows from/(used in) financing activities (29,331) (29,513) Net increase/(decrease) in cash and cash equivalents 142,434 (45,888) Cash and cash equivalents at the beginning of the financial year 383,318 429,206 Cash and cash equivalents at the end of the financial year 19(a) 525,751 383,318 Non cash transactions 19(b)

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

64 Notes to the financial statements for the financial year ended 30 June 2010

NOTE PAGE

1 Summary of significant accounting policies 66 2 Departmental (controlled) outputs 79 3 Restructuring of administrative arrangements 83 4 Summary of compliance with annual Parliamentary and special appropriations 86 5 Income from transactions 87 6 Expenses from transactions 88 7 Other economic flows included in net result 90 8 Receivables 91 9 Property, plant and equipment 92 10 Intangible assets 97 11 Payables 99 12 Borrowings 99 13 Provisions 100 14 Financial instruments 103 15 Commitments for expenditure 111 16 Contingent assets 113 17 Contingent liabilities 114 18 Superannuation 115 19 Cash flow information 116 20 Leases 118 21 Equity 120 22 Administered (non-controlled) items 122 23 Annotated income agreements 128 24 Trust account balances 128 25 Responsible persons 129 26 Remuneration of executives 130 27 Remuneration of auditors 131 28 Subsequent events 131 29 Glossary of terms 131

65 Department of Transport Annual Report 2009-10 Note 1. Summary of significant accounting policies for the financial year ended 30 June 2010

The annual financial statements In the application of AASs, »» The fair value of an asset other represent the audited general management is required to than land is generally based on its purpose financial statements for make judgements, estimates and depreciated replacement value the Department of Transport (DOT). assumptions about carrying values »» Derivative financial instruments, of assets and liabilities that are not managed investment schemes, To gain a better understanding of readily apparent from other sources. certain debt securities, investment the terminology used in this report, The estimates and associated properties after initial recognition, a glossary of terms can be found assumptions are based on historical which are measured at fair value in note 29. experience and various other factors through profit and loss that are believed to be reasonable (a) Statement of under the circumstances, the results »C» ertain liabilities that are calculated compliance of which form the basis of making with regard to actuarial assessments the judgments. Actual results may »A» vailable-for-sale investments These financial statements have differ from these estimates. been prepared in accordance with which are measured at fair value the Financial Management Act 1994 The estimates and underlying with movements reflected in equity and applicable Australian Accounting assumptions are reviewed on an until the asset is derecognised ongoing basis. Revisions to accounting Standards (AASs), including inter- Historical cost is based on the fair estimates are recognised in the period pretations. AASs include Australian values of the consideration given in in which the estimate is revised if equivalents to International Financial exchange for assets. Reporting Standards. the revision affects only that period or in the period of the revision, and Accounting policies are selected Where applicable, those paragraphs of future periods if the revision affects and applied in a manner which the AASs applicable to not‑for‑profit both current and future periods. ensures that the resulting financial entities have been applied. Judgements made by management information satisfies the concepts in the application of AASs that have The annual financial statements were of relevance and reliability, thereby significant effects on the financial ensuring that the substance of the authorised for issue by the Secretary statements and estimates, with a of DOT on 10 August 2010. underlying transactions or other risk of material adjustments in the events is reported. subsequent reporting period, are (b) Basis of accounting disclosed throughout the notes to The accounting policies set out preparation and the financial statements. below have been applied in preparing measurement the financial statements for the The report has been prepared in year ended 30 June 2010 and the accordance with the historical cost The accrual basis of accounting has comparative information presented convention except for: been applied in the preparation of for the year ended 30 June 2009. these financial statements whereby »» Non-current physical assets assets, liabilities, equity, income which, subsequent to acquisition, and expenses are recognised in the are measured at a revalued amount reporting period to which they relate, being their fair value at the date of regardless of when cash is received the revaluation less any subsequent or paid. accumulated depreciation and subsequent impairment losses. These financial statements are Revaluations are made with presented in Australian dollars, the sufficient regularity to ensure functional and presentation currency that the carrying amounts do not of DOT. materially differ from their fair value

66 Note 1. Summary of significant accounting policies for the financial year ended 30 June 2010 (continued)

(c) Reporting entity Chief Investigator, Transport The consolidated financial statements and Marine Safety Investigations exclude bodies within DOT’s portfolio The financial statements cover the that are not controlled by DOT and The Chief Investigator, Transport Department of Transport (DOT) as an therefore are not consolidated. Bodies and Marine Safety Investigations individual reporting entity. DOT is a and activities that are administered is a statutory office established on government department of the State (see explanation below under 1 August 2006 under part V of the of Victoria, established pursuant to an administered items) are also not Transport Act. The principal objective order made by the Premier under the controlled and not consolidated. and function of the office is to Administrative Arrangements Act 1983. improve public transport and marine Its principal address is 121 Exhibition In the process of preparing safety by independently investigating Street, Melbourne VIC 3000. consolidated financial statements public transport and marine safety for the State and general government DOT is an administrative agency matters and to report the results of sector (GGS), all material transactions acting on behalf of the Crown. investigations to the relevant Ministers. and balances between consolidated entities are eliminated. The financial statements include Objectives and funding all the controlled activities of DOT. DOT’s mission is to build a safer, fairer Administered items and greener transport system for all The following statutory bodies of DOT DOT administers but does not Victorians to create a more prosperous are included in the reporting entity: control certain resources on behalf and connected community. DOT is of the Crown. It is accountable for Director of Public Transport predominantly funded by accrual- the transactions involving those based parliamentary appropriations administered resources, but does The Director of Public Transport for the provision of outputs. not have the discretion to deploy the (the Director) is a position established resources for achievement of DOT’s by section 8 of the Outputs of the Department of Transport objectives. For these resources, (‘the Act’). The Director’s powers and Information about DOT’s output DOT acts only on behalf of the functions are set out in section 9 of activities, and the expenses, income, Crown. Administered resources are the Act and include responsibility assets and liabilities which are accounted for using the accrual basis for the general administration of reliably attributable to those output of accounting. the tram and train service contracts activities, is set out in the output provided by private operators under activities schedule (refer note 2). Transactions and balances relating to partnership arrangements. Information about expenses, income, these administered resources are not recognised as departmental incomes, Director, Public Transport Safety Victoria assets and liabilities administered by DOT are provided in the schedule of expenses, assets or liabilities within Director, Public Transport Safety administered expenses and income the body of the financial statements, Victoria (PTSV), was established and the schedule of administered but are disclosed in note 22. Except by an amendment to section 9T of assets and liabilities (refer note 24). as otherwise disclosed, administered the Transport Act and commenced items are accounted for on the same operating on 1 August 2006. The (d) Basis of consolidation basis and using the same accounting director has a range of functions policies as for departmental items. to enable regulation of the public The consolidated financial statements transport system. PTSV is responsible of DOT incorporate assets and Specific financial disclosures related for the safety accreditation of rail liabilities of DOT (including the to administered items can be found in and bus organisations throughout statutory bodies listed in note 1) as note 22. Victoria. The director reports to the at 30 June 2010, and their income and Minister for Public Transport. expenses for the reporting period.

67 Department of Transport Annual Report 2009-10 Funds held in trust ‘Transactions’ are those economic Statement of changes in equity flows that are considered to arise as Other trust activities on behalf of parties a result of policy decisions, usually The statement of changes in equity external to the Victorian Government interactions between two entities by presents reconciliations of each non-owner and owner equity opening DOT has responsibility for transactions mutual agreement. Transactions also balance at the beginning of the and balances relating to trust funds include flows within an entity, such reporting period to the closing balance on behalf of third parties external to as depreciation where the owner is at the end of the reporting period. the Victorian Government. Incomes, simultaneously acting as the owner It also shows separately changes expenses, assets and liabilities of the depreciating asset and as the due to amounts recognised in the managed on behalf of third parties consumer of the service provided by comprehensive result and amounts are not recognised in the financial the asset. Taxation is regarded as recognised in other comprehensive statements as they are managed on mutually agreed interactions between income related to other non-owner a fiduciary and custodial basis, and the Government and taxpayers. changes in equity. are therefore not controlled by DOT Transactions can be in kind (e.g. assets or the Victorian Government. These provided/given free of charge or for Cash flow statements transactions and balances are nominal consideration) or where the reported in note 24. final consideration is cash. Cash flows are classified according to whether or not they arise from (e) S cope and presentation ‘Other economic flows’ are changes operating activities, investing arising from market re-measurements. activities, or financing activities. of financial statements They include gains and losses This classification is consistent from disposals, revaluations and Comprehensive with requirements under AASB 107 impairments of non-current physical operating statement Statement of cash flows. and intangible assets; actuarial gains Income and expenses in the and losses arising from defined benefit (f) Income from comprehensive operating statement superannuation plans; fair value transactions are classified according to whether changes of financial instruments; or not they arise from ‘transactions’ and depletion of natural assets (non- Income is recognised to the extent or ‘other economic flows’. This produced) from their use or removal. that it is probable that the economic classification is consistent with the benefits will flow to the entity and the The net result is equivalent to profit or whole of government reporting format income can be reliably measured. and is allowed under AASB 101 loss derived in accordance with AASs. Presentation of financial statements. Balance sheet ‘Transactions’ and ‘other economic Assets and liabilities are presented flows’ are defined by theAustralian in liquidity order with assets system of government finance aggregated into financial assets statistics: concepts, sources and and non-financial assets. methods 2005 Cat.No. 5514.0 published by the Australian Bureau Current and non-current assets of Statistics (see note 29). and liabilities (those expected to be recovered or settled beyond 12 months) are disclosed in the notes, where relevant.

68 Note 1. Summary of significant accounting policies for the financial year ended 30 June 2010 (continued)

Appropriation income Output appropriations Fair value of assets and services received free of charge or for Income from the outputs DOT provides Appropriated income becomes nominal consideration controlled and is recognised by DOT to Government is recognised when when it is appropriated from the those outputs have been delivered Contributions of resources received consolidated fund by the Victorian and the relevant minister has certified free of charge or for nominal Parliament and applied to the delivery of those outputs in accordance consideration are recognised at their purposes defined under the relevant with specified performance criteria. fair value when DOT obtains control appropriations act. Additionally, DOT over them, irrespective of whether is permitted under Section 29 of Special appropriations restrictions or conditions are imposed the Financial Management Act 1994 Under section 213A(4) of the over the use of the contributions, to have certain income annotated Transport Act, income related to unless received from another to the annual appropriation. The administrative costs associated with government department or agency income which forms part of a ticket infringements are recognised as a consequence of a restructuring Section 29 agreement is recognised when the amount is appropriated of administrative arrangements. In by DOT and the receipts paid into the for that purpose is due and payable the latter case, such a transfer will Consolidated Fund as an administered by DOT. be recognised at its carrying value. item. At the point of income recognition, Contributions in the form of services Section 29 provides for an equivalent Sale of services are only recognised when a fair value amount to be added to the annual can be reliably determined and the Income from the provision of services appropriation. Examples of receipts services would have been purchased which can form part of a Section 29 Income from the provision of services if not donated. agreement are Commonwealth is recognised when it is probable specific purpose grants which are that the economic benefits associated Other income shown in note 23. The section 29 with the transaction will flow to DOT Rental income Appropriation is shown in note 4. Grants and other income transfers Rental income from the leasing of Where applicable, amounts investment properties is recognised Grants from third parties (other disclosed as income are net of on a straight-line basis over the than contribution by owners) are returns, allowances, duties and lease term. recognised as income in the reporting taxes. All amounts of income over period in which DOT gains control which DOT does not have control are over the underlying assets. disclosed as administered income in the schedule of administered income Interest income and expenses (see note 4). Income is recognised for each of DOT’s major Interest income includes unwinding activities as follows: over time of discounts on financial assets and interest received on bank term deposits and other investments.

Interest income is recognised on a time proportionate basis that takes into account the effective yield on the financial asset.

69 Department of Transport Annual Report 2009-10 (g) Expenses from Employee expenses Interest expense transactions Employee expenses include Interest expense is recognised as superannuation expenses which are expenses in the period in which they Expenses are recognised as they are reported differently depending upon are incurred. Refer to glossary of incurred and reported in the financial whether employees are members of terms in note 29 for an explanation year to which they relate. defined benefit or defined contribution of interest expense items. plans. In relation to defined contribution Payments to service providers Capital asset charge and transport agencies (i.e. accumulation) superannuation plans, the associated expense is simply The capital asset charge is calculated Payments to service providers and the employer contributions that are on the budgeted carrying amount of transport agencies are recognised as paid or payable in respect of employees applicable non‑current physical assets. an expense in the reporting period in who are members of these plans which they are paid or payable. They during the reporting period. Employer Depreciation and amortisation include transactions such as grants, superannuation expenses in relation All infrastructure assets, buildings, subsidies and other transfer payments to employees who are members of plant and equipment and other non- to other agencies, such as VicRoads. defined benefit superannuation plans current physical assets (excluding are described below. Supplies and services items under operating leases, Superannuation – assets held-for-sale and investment Supplies and services expenses are State superannuation properties) that have a limited useful recognised as an expense in the defined benefit plans life are depreciated. Depreciation is reporting period in which they are generally calculated on a straight-line incurred. The carrying amounts of The amount recognised in the basis, at rates that allocate the asset’s any inventories held for distribution comprehensive operating statement value, less any estimated residual are expensed when distributed. in relation to employer contributions value, over its estimated useful life. for members of defined benefit Grants and other superannuation plans is simply the Leasehold improvements are expense transfers employer contributions that are paid depreciated over the period of the Grants and other transfers to third or payable to these plans during the lease or the asset’s estimated parties (other than contribution to reporting period. The level of these useful life, whichever is the shorter, owners) are recognised as an expense contributions will vary depending using the straight-line method. in the reporting period in which they upon the relevant rules of each plan, The estimated useful lives, residual are paid or payable. They include and is based upon actuarial advice. values and depreciation methods are transactions such as grants for reviewed at the end of each annual The Department of Treasury and community and social benefits which reporting period. Finance (DTF) in their Annual are disclosed within the supplies Financial Statements, recognise on Land, land under declared roads, and services category. behalf of the State as the sponsoring and core cultural assets, which are Other operating expenses employer, the net defined benefit considered to have an indefinite life, cost related to the members of these are not depreciated. Depreciation is Other operating expenses generally plans. Refer to DTF’s Annual Financial not recognised in respect of these represent the day to day running costs Statements for more detailed assets as their service potential has incurred in normal operations. disclosures in relation to these plans. not, in any material sense, been consumed during the reporting period. The amount recognised in the comprehensive operating statement in respect of defined benefit superannuation plans represents the accrual of benefits during the reporting period. Note 18 provides further details.

70 Note 1. Summary of significant accounting policies for the financial year ended 30 June 2010 (continued)

Intangible produced assets with Fair value of assets and services Impairment of non-financial assets finite useful lives are amortised as provided free of charge or for a Intangible assets with indefinite useful an expense from transactions on a nominal consideration lives including those that are not yet systematic (typically straight-line) Contributions of resources provided available for use are tested annually basis over the asset’s useful life. free of charge or for nominal for impairment and whenever there Amortisation begins when the asset is consideration are recognised at their is an indication that the asset may available for use, that is, when it is in fair value when the transferee obtains be impaired (i.e. as to whether the location and condition necessary control over them, irrespective of their carrying value exceeds their for it to be capable of operating in the whether restrictions or conditions recoverable amount and so require manner intended by management. are imposed over the use of the write downs). All other assets are Amortisation of an intangible non- contributions, unless received from assessed annually for indications of produced asset with a finite useful another government department impairment, except for: life is not classified as a transaction or agency as a consequence of and is included in the net result as an »» Financial assets (refer note 1(j)) a restructuring of administrative other economic flow. The amortisation arrangements. In the latter case, »» Assets arising from construction period and the amortisation method such a transfer will be recognised contracts (refer note 1(k)) for an intangible asset with a finite at its carrying value. useful life are reviewed at least at the If there is an indication of impairment, end of each annual reporting period. Contributions in the form of services the assets concerned are tested as to are only recognised when a fair value whether their carrying value exceeds Intangible assets with indefinite can be reliably determined and the their possible recoverable amount. useful lives are not amortised. services would have been purchased Where an asset’s carrying value However, all intangible assets are if not donated. exceeds its recoverable amount, the assessed for impairment annually difference is written off as an other as outlined in note 1(j). (h) Other economic flows economic flow, except to the extent Bad and doubtful debts included in net result that the write down can be debited to an asset revaluation surplus amount Bad and doubtful debts are assessed Other economic flows measure the applicable to that class of asset. on a regular basis. Those bad debts change in volume or value of assets considered as written off by mutual or liabilities that do not result from It is deemed that, in the event of the consent are classified as a transaction transactions. These include: loss of an asset, the future economic expense. Those written off unilaterally benefits arising from the use of and the allowance for doubtful Net gain or loss on the asset will be replaced unless a receivables, are classified as other non-financial assets specific decision to the contrary has economic flows (refer to note 1(j) been made. The recoverable amount impairment of financial assets). The Net gain/(loss) on non-financial assets for most assets is measured at the only bad and doubtful debts reported and liabilities includes realised and higher of depreciated replacement are administered in note 22. unrealised gains and losses as follows: cost and fair value less costs to sell. Revaluation gains/(losses) of Recoverable amount for assets held non-current physical assets primarily to generate net cash inflows is measured at the higher of the Refer to accounting policy provided present value of future cash flows in note 1(k) – Property, plant expected to be obtained from the and equipment. asset and fair value less costs to sell.

Disposal of non-financial assets Any gain or loss on the sale of non- financial assets is recognised at the date that control of the asset is passed to the buyer and is determined after deducting from the proceeds the carrying value of the asset at that time.

71 Department of Transport Annual Report 2009-10 Other gains or losses from other Fines and regulatory fees A provision for doubtful receivables economic flows is made when there is objective DOT collects fines and fees on behalf evidence that the debts may not be Other gains/(losses) from other of the Crown and does not gain control collected and bad debts are written economic flows include the gains over the assets arising from these off when identified (refer to note 1(j) or losses from: items. Consequently, the amounts Impairment of financial assets). of fines and fees are not recognised »T» ransfer of amounts from the in DOT’s financial statements but reserves and/or accumulated Investments and other disclosed as income in the schedule of surplus to net result due to financial assets administered items (refer note 22). disposal or derecognition Investments are recognised and or reclassification (j) Financial assets de-recognised on trade date where »» The revaluation of the present purchase or sale of an investment is value of the long service leave Cash and deposits under a contract whose terms require delivery of the investment within the liability due to changes in the Cash and deposits, including cash bond interest rates timeframe established by the market equivalents, comprise cash on hand concerned, and are initially measured and cash at bank, deposits at call at fair value, net of transaction costs. (i) Administered income and those highly liquid investments Commonwealth grants with an original maturity of three DOT has investments in the category months or less, which are held for of cash and deposits. DOT’s administered grants mainly the purpose of meeting short term comprise funds provided by the cash commitments rather than for The classification depends on the Commonwealth to assist the State investment purposes, and which purpose for which the investments Government in meeting general or are readily convertible to known were acquired. Management specific service delivery obligations, amounts of cash and are subject to an determines the classification of its primarily for the purpose of aiding insignificant risk of changes in value. investments at initial recognition. in the financing of the operations of the recipient, capital purposes and/ For cash flow statement presentation DOT assesses at each end of the or for on passing to other recipients. purposes, cash and cash equivalents reporting period whether a financial Grants also include grants from includes bank overdrafts, which asset or group of financial assets is other jurisdictions. are included as borrowings on the impaired (refer to note 1(j) Impairment balance sheet. of financial assets). Grants are recognised as income when DOT gains control of the Receivables Loans and receivables underlying assets. Where such grants Receivables consist predominantly Term deposits with maturity greater are payable into the consolidated fund, of amounts owing from the Victorian than three months, trade receivables, they are reported as administered Government, debtors in relation to loans and other receivables are income. For reciprocal grants, goods and services, accrued investment recorded at amortised cost, using (i.e. equal value is given back by income and GST input tax credits the effective interest method, less DOT to the provider) DOT is deemed recoverable. Receivables that are impairment. The effective interest to have assumed control when the contractual are classified as financial method is a method of calculating the performance has occurred under instruments. Amounts owing from the amortised cost of a financial asset and the grant. For non reciprocal grants, Victorian Government, taxes and other of allocating interest income over the DOT is deemed to have assumed statutory receivables are not classified relevant period. The effective interest control when the grant is received as financial instruments. rate is the rate that exactly discounts or receivable. Conditional grants estimated future cash receipts through may be reciprocal or non reciprocal Receivables are recognised initially the expected life of the financial asset, depending on the terms of the grant. at fair value and subsequently or where appropriate, a shorter period. measured at amortised cost, using Commonwealth grants are disclosed the effective interest method, less as income in the schedule of an allowance for impairment. administered items (see note 22).

72 Note 1. Summary of significant accounting policies for the financial year ended 30 June 2010 (continued)

Impairment of financial assets Non-current physical assets such as Non-current physical assets Crown land, and heritage assets are constructed by DOT DOT assesses at the end of each measured at fair value with regard to reporting period whether there is the property’s highest and best use The cost of non-current physical objective evidence that a financial after due consideration is made for assets constructed by DOT includes asset or group of financial assets any legal or constructive restrictions the cost of all materials used in is impaired. All financial assets imposed on the asset, public construction, direct labour on the are subject to annual review for announcements or commitments project, and an appropriate proportion impairment. made in relation to the intended use of variable and fixed overheads. Bad and doubtful debts for financial of the asset. Theoretical opportunities Revaluations of non-current assets are assessed on a regular that may be available in relation to physical assets basis. Those bad debts considered the asset are not taken into account Non-current physical assets are as written off by mutual consent are until it is virtually certain that the measured at fair value in accordance classified as a transaction expense. restrictions will no longer apply. with FRD 103D issued by the Minister The bad debts not written off by The fair value of cultural depreciated for Finance. A full revaluation mutual consent and allowance for assets and collection, heritage assets normally occurs every five years, doubtful receivables are classified and other non-current physical assets based on the asset’s government as ‘other economic flows’. that the State intends to preserve purpose classification, but may In assessing impairment of statutory because of their unique historical, occur more frequently if fair value (non-contractual) financial assets cultural or environmental attributes, assessments indicate material which are not financial instruments, are measured at the replacement cost changes in values. Independent DOT applies professional judgement of the asset less, where applicable, valuers are used to conduct these in assessing materiality and using accumulated depreciation calculated scheduled revaluations and any estimates, averages and computational on the basis of such cost to reflect the interim revaluations are determined shortcuts in accordance with AASB 136 already consumed or expired future in accordance with the requirements Impairment of assets. economic benefits of the asset and of the FRDs. any accumulated impairment. (k) Non-financial assets Revaluation increases or decreases The fair value of infrastructure arise from differences between an Prepayments systems and plant, equipment and asset’s carrying value and fair value. vehicles, is normally determined by Other non-financial assets include reference to the asset’s depreciated Net revaluation increases (where prepayments which represent replacement cost. For plant, the carrying amount of a class of payments in advance of receipt of equipment and vehicles, existing assets is increased as a result of goods or services or that part of depreciated historical cost is generally a revaluation) are recognised in expenditure made in one accounting a reasonable proxy for depreciated other comprehensive income and period covering a term extending replacement cost because of the short accumulated in equity under the beyond that period. lives of the assets concerned. revaluation surplus, except that the net revaluation increase shall Property, plant and equipment Restrictive nature of cultural be recognised in the net result to All non-current physical assets and heritage assets, Crown land the extent that it reverses a net are measured initially at cost and and infrastructure revaluation decrease in respect of subsequently revalued at fair value Certain agencies hold cultural assets, the same class of property, plant less accumulated depreciation heritage assets, Crown land and and equipment previously recognised and impairment. infrastructure, which are deemed as an expense (other economic worthy of preservation because of the flows) in the net result. social rather than financial benefits they provide to the community. Consequently, there are certain limitations and restrictions imposed on their use and/or disposal.

73 Department of Transport Annual Report 2009-10 Net revaluation decreases are (a) The technical feasibility of Other liabilities included in payables recognised immediately as expenses completing the intangible asset mainly consist of unearned/prepaid (other economic flows) in the net so that it will be available for income, goods and services tax and result, except that the net revaluation use or sale fringe benefits tax payables. decrease shall be recognised in other comprehensive income to the (b) An intention to complete the Payables are initially recognised at extent that a credit balance exists in intangible asset and use or fair value, being the cost of the goods the revaluation surplus in respect sell it and services, and subsequently of the same class of property, plant measured at amortised cost. (c) The ability to use or sell the and equipment. The net revaluation intangible asset Borrowings decrease recognised in other comprehensive income reduces the (d) The intangible asset will Interest bearing liabilities are initially amount accumulated in equity under generate probable future measured at fair value, being the cost revaluation surplus. economic benefits of the interest bearing liabilities, net of transaction costs. Revaluation increases and decreases (e) The availability of adequate relating to individual assets within a technical, financial and other Subsequent to initial recognition, class of property, plant and equipment, resources to complete the interest bearing liabilities are measured are offset against one another within development and to use or sell at amortised cost with any difference that class but are not offset in respect the intangible asset between the initial recognised amount of assets in different classes. Any and the redemption value being revaluation surplus is not normally (f) The ability to measure reliably recognised in profit and loss over the transferred to accumulated funds on the expenditure attributable to period of the interest bearing liability derecognition of the relevant asset. the intangible asset during using the effective interest rate method. its development Intangible assets Provisions Where no internally‑generated Intangible assets are initially Provisions are recognised when intangible asset can be recognised, recognised at cost. Subsequently, DOT has a present obligation, the development expenditure is intangible assets with finite useful lives future sacrifice of economic benefits recognised as an expense in the are carried at cost less accumulated is probable, and the amount of the period as incurred. amortisation and accumulated provision can be measured reliably. impairment losses. Costs incurred Intangible assets are measured at The amount recognised as a subsequent to initial acquisition are cost less accumulated amortisation provision is the best estimate of capitalised when it is expected that and impairment, and are amortised the consideration required to settle additional future economic benefits on a straight line basis over their the present obligation at the end will flow to DOT. useful lives as follows: Capitalised of the reporting period, taking into software development costs Other non-financial assets account the risks and uncertainties three-five years. surrounding the obligation. Where a Research and development costs provision is measured using the cash Expenditure on research activities (l) Liabilities flows estimated to settle the present is recognised as an expense in the Payables obligation, its carrying amount is the period in which it is incurred. present value of those cash flows. Payables consist predominantly of An internally generated intangible accounts payable and other sundry asset arising from development liabilities. Accounts payable represent (or from the development phase of liabilities for goods and services an internal project) is recognised if, provided to DOT prior to the end of and only if, all of the following the financial year that are unpaid, are demonstrated: and arise when DOT becomes obliged to make future payments in respect of the purchase of those goods and services.

74 Note 1. Summary of significant accounting policies for the financial year ended 30 June 2010 (continued)

Employee benefits The components of this current (iv) Employee benefits on-costs LSL liability are measured at: Provision is made for benefits Employee benefits on costs such as accruing to employees in respect »» Nominal value – component payroll tax, workers compensation of wages and salaries, annual leave that DOT expects to settle and superannuation are recognised and long service leave for services within 12 months separately from the provision for rendered to the reporting date. »» Present value – component employee benefits. (i) Wages and salaries, annual that DOT does not expect to leave and sick leave settle within 12 months (m) Leases A lease is a right to use an asset for Liabilities for wages and salaries, Non-current liability – conditional an agreed period of time in exchange including non monetary benefits, LSL is disclosed in the notes to for payment. annual leave and accumulating the financial statements as a non-current liability. There is an sick leave which are expected to Leases are classified at their inception be settled within 12 months of the unconditional right to defer the settlement of the entitlement until as either operating or finance leases reporting period, are recognised based on the economic substance in the provision for employee the employee has completed the requisite years of service. of the agreement so as to reflect benefits. These liabilities are the risks and rewards incidental to classified as current liabilities and This non-current LSL liability is ownership. Leases of property, plant measured at their nominal values. measured at present value. Any and equipment are classified as finance infrastructure leases whenever Those liabilities that are not gain or loss following revaluation the terms of the lease transfer expected to be settled within of the present value of non‑current substantially all the risks and rewards 12 months are recognised in the LSL liability is recognised as a of ownership from the lessor to the provision for employee benefits transaction, except to the extent lessee. All other leases are classified as current liabilities, measured that a gain or loss arises due to as operating leases. at present value of the amounts changes in bond interest rates for which it is then recognised as expected to be paid when the Finance leases liabilities are settled using the an other economic flow (refer to remuneration rate expected to note 1(h) Other economic flows Department as lessee included in net result). apply at the time of settlement. At the commencement of the lease (ii) Long service leave (iii) Termination benefits term, finance leases are initially recognised as assets and liabilities at Liability for long service leave Termination benefits are payable amounts equal to the fair value of the (LSL) is recognised in the provision when employment is terminated lease property or, if lower, the present for employee benefits. before the normal retirement date, value of the minimum lease payment, or when an employee accepts each determined at the inception of the Current liability – unconditional voluntary redundancy in exchange lease. The lease asset is depreciated LSL is disclosed in the notes to the for these benefits. DOT recognises over the shorter of the estimated financial statements as a current termination benefits when it is useful life of the asset or the term of liability even where DOT does not demonstrably committed to either the lease. expect to settle the liability within terminating the employment of 12 months because it will not have current employees according to Minimum finance lease payments are the unconditional right to defer a detailed formal plan without apportioned between reduction of the the settlement of the entitlement possibility of withdrawal or outstanding lease liability, and periodic should an employee take leave providing termination benefits finance expense which is calculated within 12 months. as a result of an offer made to using the interest rate implicit in encourage voluntary redundancy. the lease and charged directly to the Benefits falling due more than comprehensive operating statement. 12 months after the end of the Contingent rentals associated with reporting period are discounted finance leases are recognised as an to present value. expense in the period in which they are incurred.

75 Department of Transport Annual Report 2009-10 Operating leases (o) Commitments (r) Events after the Department as lessee Commitments are disclosed at reporting period Operating lease payments, including their nominal value and inclusive Assets, liabilities, income or expenses any contingent rentals, are recognised of the GST payable. In addition, arise from past transactions or other as an expense in the comprehensive where it is considered appropriate past events. Where the transactions operating statement on a straight- and provides additional relevant result from an agreement between line basis over the lease term, except information to users, the net present DOT and other parties, the where another systematic basis values of significant individual transactions are only recognised is more representative of the time projects are stated. when the agreement is irrevocable pattern of the benefits derived from at or before the end of the reporting the use of the leased asset. The (p) Contingent assets and period. Adjustments are made to leased asset is not recognised in the contingent liabilities amounts recognised in the financial balance sheet. statements for events which occur Contingent assets and contingent after the reporting period and before (n) Equity liabilities are not recognised in the the date the financial statements balance sheet, but are disclosed by are authorised for issue, where Contributions by owners way of a note and, if quantifiable, those events provide information Additions to net assets which have are measured at nominal value. about conditions which existed in the been designated as contributions by Contingent assets and liabilities reporting period. Note disclosure owners are recognised as contributed are presented inclusive of GST is made about events between the capital. Other transfers that are in the receivable or payable respectively. end of the reporting period and the nature of contributions or distributions date the financial statements are have also been designated as (q) Accounting for the authorised for issue where the events contributions by owners. Goods and Services relate to conditions which arose after the end of the reporting period and Transfers of net assets arising Tax (GST) which may have a material impact on from administrative restructurings Income, expenses and assets are the results of subsequent reporting are treated as distributions to or recognised net of the amount of periods (note 28). contributions by owners. associated GST, unless the GST incurred is not recoverable from (s) Rounding of amounts the taxation authority. In this case Amounts in the financial statements it is recognised as part of the cost have been rounded to the nearest of acquisition of the asset or as thousand dollars, unless otherwise part of the expense. stated. Figures in the financial Receivables and payables are stated statements may not equate due inclusive of the amount of GST to rounding. receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flow.

76 Note 1. Summary of significant accounting policies for the financial year ended 30 June 2010 (continued)

(t) New accounting standards and interpretations

Certain new AASs have been published that are not mandatory for the 30 June 2010 reporting period. DTF assesses the impact of these new standards and advises DOT of their applicability and early adoption where applicable.

As at 30 June 2010, the following standards and interpretations (applicable to departments) had been issued but were not mandatory for the financial year ending 30 June 2010. DOT has not early adopted these standards.

Applicable for annual reporting periods Impact on departmental Standard / Interpretation Summary beginning or ending on financial statements

AASB 2009-5 Further Some amendments will Beginning 1 Jan 2010 Terminology and editorial amendments to Australian result in accounting changes changes. Impact minor. Accounting Standards arising for presentation, recognition from the annual improvements or measurement purposes, project [AASB 5, 8, 101, 107,117, while other amendments will 118, 136 and 139] relate to terminology and editorial changes.

AASB 2009-8 Amendments The amendments clarify the Beginning 1 Jan 2010 No impact. AASB 2 does to Australian Accounting scope of AASB 2. not apply to government Standards – group cash departments or entities; settled share-based payment consequently this standard transactions [AASB 2] does not apply.

AASB 2009-9 Amendments Applies to entities adopting Beginning 1 Jan 2010 No impact. Relates to Australian Accounting Australian Accounting Standards only to first time adopters Standards – additional for the first time, to ensure of Australian Accounting exemptions for first-time entities will not face undue cost Standards. adopters [AASB 1] or effort in the transition process in particular situations.

Erratum General Editorial amendments to a Beginning 1 Jan 2010 Terminology and editorial Terminology changes range of Australian Accounting changes. Impact minor. Standards and Interpretations

AASB 2009-10 Amendments The Standard makes amendments Beginning 1 Feb 2010 No impact. Departments do to Australian Accounting to AASB 132, stating that rights not issue rights, warrants Standards – classification of issues must now be classed as and options, consequently rights issues [AASB 132] equity rather than derivative the amendment does not liabilities. impact on the statements.

AASB 2009-13 Amendments Consequential amendment to Beginning 1 Jul 2010 Departments do not to Australian Accounting AASB 1 arising from publication extinguish financial liabilities Standards arising from of Interpretation 19. with equity instruments, interpretation 19 [AASB 1] therefore requirements of Interpretation 19 and related amendments have no impact.

77 Department of Transport Annual Report 2009-10 Applicable for annual reporting periods Impact on departmental Standard / Interpretation Summary beginning or ending on financial statements

AASB 124 Related party Government related entities Beginning 1 Jan 2011 Preliminary assessment disclosures (Dec 2009) have been granted partial suggests that impact is exemption with certain insignificant. However, DOT disclosure requirements. is still assessing the detailed impact and whether to early adopt.

AASB 2009-12 Amendments This standard amends AASB 8 Beginning 1 Jan 2011 AASB 8 does not apply to to Australian Accounting to require an entity to exercise departments therefore no Standards [AASB 5, 8,108, 110, judgement in assessing whether impact expected. Otherwise, 112, 119, 133,137, 139, 1023 and a government and entities known only editorial changes 1031 and Interpretations 2, 4,16, to be under the control of that arising from amendments 1039 and 1052] government are considered a to other standards, no major single customer for purposes impact. Impacts of editorial of certain operating segment amendments are not disclosures. This standard also expected to be significant. makes numerous editorial amendments to other AASs.

AASB 2009-14 Amendments Amendment to Interpretation Beginning 1 Jan 2011 Expected to have no to Australian Interpretation – 14 arising from the issuance significant impact. Prepayments of a minimum of Prepayments of a minimum funding requirement[AASB funding requirement. Interpretation 14]

AASB 9 Financial instruments This standard simplifies Beginning 1 Jan 2013 Detail of impact is still requirements for the classification being assessed. and measurement of financial assets resulting from Phase 1 of the IASB’s project to replace IAS 39 Financial instruments: recognition and measurement (AASB 139 Financial Instruments: recognition and movement).

AASB 2009-11 Amendments This gives effect to consequential Beginning 1 Jan 2013 Detail of impact is still to Australian Accounting changes arising from the issuance being assessed. Standards arising from AASB 9 of AASB 9. [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112,118, 121, 127, 128, 131, 132, 136, 139, 1023 and 1038 and Interpretations 10 and 12]

78 Note 2. Departmental (controlled) outputs

A description of Departmental outputs Public Transport Services Infrastructure Planning, performed during the year ended Delivery and Management 30 June 2010, and the objectives of These outputs oversee the delivery of these outputs, are summarised below. quality, sustainable and cost effective These outputs deliver strategic policy passenger train, tram and bus guidance to better integrate transport Output Groups services to metropolitan Melbourne and land use planning. Integrated and regional Victoria, in partnership transport and land use planning Transport Safety and Security with operators and in accordance with identifies current and future access contractual arrangements. These needs – for people to employment, These outputs will deliver initiatives outputs also include the provision goods to markets and services to and regulatory activities that will of specialist transport services that businesses – and ensures that land improve safety on Victoria’s roads, provide mobility for those unable to use and transport development public transport and waterways. use other forms of public transport. are coordinated to best address These outputs also include activities these needs. These outputs deliver aimed at maintaining the security Dependable and accessible public strategic transport infrastructure of critical transport infrastructure transport services will reduce improvements to increase the and ensuring the preparedness to reliance on private motor vehicles capacity of the transport system and respond to emergencies involving and reduce social exclusion caused increase the efficiency of existing this infrastructure. by lack of transport options. These transport infrastructure to improve outputs support DOT’s priority of the movement of people, goods and These outputs will make the supporting the Victorian economy services throughout Victoria. These transport system safer by reducing with an effective and resilient outputs deliver projects to develop the frequency, severity and cost transport system, and make a sustainable transport solutions, of incidents and accidents. This significant contribution to achieving including promoting sustainable supports DOT’s priority of ensuring the Government’s goal of growing travel modes and increasing the use safety for all transport users, and and linking all of Victoria. of public transport. An integrated and makes a significant contribution to sustainable transport system will achieving the Government’s goal of sustain economic growth and support building friendly, confident and social inclusion and improved quality of safe communities. life, while conserving the environment for current and future generations.

These outputs support DOT’s priorities to integrate transport and land use planning, support the Victorian economy with an effective and resilient transport system, and improve the sustainability of Victorian transport. These department priorities make a significant contribution to achieving the Government’s goals of growing and linking all of Victoria and the efficient use of natural resources.

79 Department of Transport Annual Report 2009-10 The Government is committed to Departmental outcomes Governmental goals building better, more accessible transport links for the State. This 1. Safety and security 1. Growing and linking all includes improving the integration, of Victoria across Government, of transport and 2. Integrated policy, planning land use planning, increasing the use and communication 2. Sound financial management of public transport and strengthening 3. Accessible, reliable and 3. More quality jobs and the connections between outputs, connected transport services thriving, innovative industries industry and agricultural centres. and traffic management across Victoria These outputs deliver a combination of strategic road and rail infrastructure 4. Rural and regional transport 4. Protecting the environment improvements to manage congestion and development for future generations and improve the movement of people and goods throughout Victoria. 5. Project development, delivery 5. Efficient use of natural resources They also encompass infrastructure and asset management projects that will extend and increase 6. Building friendly, confident and the capacity on the metropolitan 6. A more productive State safe communities train network; improve control and communications across the 7. Organisational capability 7. A fairer society that reduces metropolitan train network; disadvantage and respects re-establish regional passenger diversity transport connections; improve 8. High quality education and strategic arterial road links; and training for lifelong learning establish a major roadway linking the city’s south eastern suburbs. 9. High quality, accessible health and community services

80 Note 2. Departmental (controlled) outputs (continued)

Schedule A – Controlled income and expenses for the financial year ended 30 June 2010

Infrastructure, Transport Safety Public Transport Planning, Delivery and Security Services and Management Total DOT 2010 2009 2010 2009 2010 2009 2010 2009 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

C noNTINui g operations

Income from transactions Output appropriations 158,500 134,800 2,782,465 2,560,499 1,520,559 1,266,100 4,461,524 3,961,399 Special – – 1,303 1,819 – – 1,303 1,819 appropriations Sale of services 2,994 4,439 380,969 155,393 – – 383,963 159,832 Grants and other 304 374 130,514 126,090 2,760 2,613 133,578 129,077 income transfers Interest – – 2,032 2,362 – – 2,032 2,362 Fair value of assets and services received free of charge 265 274 15 8 63 79 343 361 or for nominal consideration Other income 312 84 5,036 662 407 2,324 5,755 3,088 Total income from 162,375 139,971 3,302,334 2,846,833 1,523,789 1,271,134 4,988,498 4,257,938 transactions

Expn e ses from transactions Payments to service providers and (106,239) (81,888) (3,167,391) (2,633,347) (1,318,563) (1,114,920) (4,592,193) (3,830,155) transport agencies Supplies and services (26,473) (30,690) (98,609) (96,667) (53,245) (48,956) (178,327) (176,313) Employee benefits (26,946) (23,168) (42,435) (41,351) (38,838) (35,471) (108,219) (99,990) Interest expense (79) (92) (95) (102) (31,945) (54) (32,119) (248)

Capital asset charge (458) (492) (24,043) (21,368) (1,371) (1,189) (25,872) (23,049)

Depreciation and (2,180) (1,002) (14,396) (4,898) (3,327) (1,514) (19,903) (7,414) amortisation Fair value of assets and services provided free of charge or (2) (2) (15) (9) (65) (77) (82) (88) for nominal consideration Total expenses from (164,377) (137,334) (3,346,984) (2,797,742) (1,447,354) (1,202,181) (4,956,715) (4,137,257) transactions Net result from transactions (net (2) 2,637 (44,650) 49,091 76,435 68,953 31,783 120,681 operating balance)

81 Department of Transport Annual Report 2009-10 Schedule A – Controlled income and expenses for the financial year ended 30 June 2010 (continued)

Infrastructure, Transport Safety Public Transport Planning, Delivery and Security Services and Management Total DOT 2010 2009 2010 2009 2010 2009 2010 2009 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

O ther eCONOMIC flows included in net result

Net gains/(losses) on (259) (534) (16,559) (1,173) (4,620) (1,948) (21,438) (3,655) non-financial assets

Other gains/ (losses) from other (50) (127) (76) (241) (95) (185) (221) (553) economic flows

Total other economic flows (309) (661) (16,635) (1,414) (4,715) (2,133) (21,659) (4,208) included in net result Net result (311) 1,976 (61,285) 47,677 71,720 66,820 10,124 116,473

O ther eCONOMIC flows – other non-owner changes in equity

Changes in physical asset revaluation 27 – 19,161 – 272,835 – 292,023 – surplus Total other economic flows – 27 – 19,161 – 272,835 – 292,023 – other non-owner changes in equity

Comprehensive (284) 1,976 (42,124) 47,677 344,555 66,820 302,147 116,473 result

Schedule B – Controlled assets and liabilities as at 30 June 2010

Asts e s Financial assets 46,159 38,043 605,263 627,486 494,344 254,374 1,145,766 919,903 Non-financial assets 23,672 18,954 1,214,199 223,022 189,485 169,701 1,427,356 411,677 Total assets 69,831 56,997 1,819,462 850,508 683,829 424,075 2,573,122 1,331,580

Lib a iliTIEs Liabilities 20,610 13,266 1,147,980 627,596 262,678 140,143 1,431,268 781,005 Total liabilities 20,610 13,266 1,147,980 627,596 262,678 140,143 1,431,268 781,005 Net assets 49,221 43,731 671,482 222,912 421,151 283,932 1,141,854 550,575

82 Note 3. Restructuring of administrative arrangements

(i) Dissolution of Southern Cross Station Authority on 31 July 2009

The Southern Cross Station Authority (SCSA) was wound up on 31 July 2009.

The responsibilities of SCSA were transferred between DOT, V/Line and . The assets and liabilities of the authority were transferred to DOT.

As at 31 July 2009, the assets and liabilities detailed below were transferred to DOT as contributed capital.

Transfer from the Southern Cross Station Authority to the Department of Transport

2010 Note $’000

ASST E S Cash and deposits 5,714 Debtors 1,573 Receivables 10,343 Land 9 132,280 Buildings 9 535,611 Infrastructure 9 19,289 Property, plant and equipment 9 479 Cultural Asset 9 875 Assets under construction 9 7,997

LB IA ILITIES Creditors (11,232) Deposits repayable (12) Accrued expenses (1,619) Provision for annual leave – current (46) Provision for long service leave – current (9) Finance lease liability – non-current (367,577) Provision for long service leave – non-current (79) Net assets transferred to DOT 333,588

83 Department of Transport Annual Report 2009-10 (ii) Transfer from the Department of Transport to the Shared Service Provider

The government issued an Administrative Order to restructure some of its activities in relation to the provision of shared services. This restructure resulted in DOT relinquishing certain corporate service functions to the Shared Service Provider (SSP). The SSP provides facilities, accommodation, car pool management and library services across 11 government departments and four agencies (Victoria Police, VicRoads, Environmental Protection Authority and State Revenue Office).

2010 $’000

ASST E S Funds in State Administration Unit 95

LB IA ILITIES Annual leave payable within 12 months (42) Long service leave payable after 12 months (53) Net assets transferred to SSP –

84 Note 3. Restructuring of administrative arrangements (continued)

(iii) Machinery of government changes effective from 30 April 2008

Pursuant to Administrative Arrangements Order (No.199) 2008, the functions of the Secretary and body corporate of Major Projects Victoria (MPV) were transferred to the Department of Innovation, Industry and Regional Development (DIIRD) on 30 April 2008. The Order stipulates that for financial reporting purposes, all the activities of MPV are accounted for by DOT until 30 June 2008 as if the functions had not been transferred.

As at 1 July 2008, the assets and liabilities detailed below were transferred to DIIRD as contributed capital. Transfer of Major Projects Victoria to the Department of Innovation, Industry and Regional Development

2009 Note $’000

ASST E S Cash and deposits 42,432 Debtors 8,441 GST recoverable 2,380 Grants receivable 4,053 Prepayments 27 Land inventory 64,387 Intangible asset (deferred expenditure) – current 10 955 Land at valuation 9 130,000 Buildings at valuation 9 4,556 Infrastructure at cost 9 31,080 Plant and equipment at cost 9 59 Buildings leasehold improvements 9 1,200 Infrastructure asset under construction 9 2,389 Intangible asset (deferred expenditure) – non-current 46,467

LB IA ILITIES Creditors (464) Deposits repayable (35,969) GST payable (2,414) Accrued expenses (6,172) Provision for annual leave – current (313) Provision for long service leave – current (228) Other employee entitlements – current (29) Provision for long service leave – non-current (139) Net assets transferred to DIIRD 292,698

85 Department of Transport Annual Report 2009-10 Note 4. Summary of compliance with annual parliamentary and special appropriations

(a) Summary of compliance with annual parliamentary appropriations

The following table discloses the details of the various annual parliamentary appropriations received by DOT 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 DOT. Administered transactions are those that are undertaken on behalf of the State over which DOT has no control or discretion.

Appropriations Provision for outputs Additions to net assets 2010 2009 2010 2009 $’000 $’000 $’000 $’000

contl rol ed

APPROPRIATION ACT Annual Appropriation 3,884,742 3,634,328 1,852,602 1,111,280 Payments from Advance from Treasurer 61,513 66,036 23,447 82,913

FIN L ANCIA MANAGEMENT ACT 1994 Section 29 Appropriation of Certain Receipts 581,430 402,051 30,190 103,219 Section 30 Transfer Between Appropriations 18,770 2,000 (18,770) (2,000) Section 32 Unused Appropriations (from prior years) 176,590 38,492 133,035 157,399 Section 35 Temporary Advances – – – 167,000 Total parliamentary authority 4,723,045 4,142,907 2,029,504 1,619,811 Appropriations applied 4,461,524 3,961,399 1,357,086 1,418,989 Variance (i) 261,521 181,508 663,418 200,822

(i) The variance primarily relates to agreed changes in the scheduling of committed projects.

(b) Summary of compliance with special appropriations

Authority Purpose Appropriations applied 2009 2008 $’000 $’000

Opa er tINg Section 213A (4) of the Transport Act Refund to public transport operators for administrative 1,303 1,819 costs associated with ticket infringements

Captl i a Section 10 of the Financial Capital contribution from the Commonwealth for the – 488 Management Act 1994 Regional Rail Link Project

86 Note 5. Income from transactions

2010 2009 $’000 $’000

(a)lf Sa e o services Sale of transport services (i) 383,963 159,832 Total income from sale of services 383,963 159,832

(b)at Gr n s Specific purpose for on passing 129,998 124,735 Other specific purpose 3,580 4,342 Total grants 133,578 129,077

( c) Other income Sales to other government agencies 1,387 1,761 Other income 4,368 1,327 Total other income 5,755 3,088

(i) From 30 November 2009 DOT receives the full farebox collection across all transport modes. Previously DOT was in receipt of only a portion of farebox revenue.

87 Department of Transport Annual Report 2009-10 Note 6. Expenses from transactions

2010 2009 Note $’000 $’000

(a)y Pa mENTs to service providers and transport agencies Rail system operation and related services (1,347,876) (955,101) Grants for capital asset charge (1,060,877) (959,036) Total rail services (2,408,753) (1,914,137) Road services (1,311,055) (1,069,778) Bus services (754,803) (710,390) Payments to other agencies (117,582) (135,850) Total payments to service providers and transport agencies (4,592,193) (3,830,155)

(b) e Suppli s and services Multi Purpose Taxi Program (49,377) (46,750) Grants for community and social benefits (26,861) (27,848) Administration and information technology (22,229) (25,243) Accommodation (16,318) (15,852) Insurance, legal and internal audit fees (4,888) (5,315) Other (58,654) (55,305) Total supplies and services (178,327) (176,313)

( lc) Emp oyee benefits Salaries and wages (79,015) (73,320) Annual leave and long services leave expense (12,870) (11,279) Superannuation (excluding salary sacrifice) (8,294) (7,357) Other on-costs (fringe benefits tax, payroll tax and WorkCover levy) (8,040) (8,034) Total employee benefits (108,219) (99,990)

88 Note 6. Expenses from transactions (continued)

2010 2009 Note $’000 $’000

( RD) DEP ECIATION and AMORTISATION

Depreciation and amortisation of property, plant and equipment Buildings (9,227) (188) Infrastructure assets (1,495) (1,492) Plant and equipment (589) (578) Leasehold improvements (6,120) (1,246) Leased vehicles (760) (687) Cultural Assets (175) – Total property, plant and equipment 9 (18,366) (4,191)

Amortisation Intangible assets (1,537) (3,223) Total intangibles 10 (1,537) (3,223) Total depreciation and amortisation (19,903) (7,414)

( e) Fair value of assets and services provided free of charge

Services provided free of charge Department of Human Services – (25) Total services provided free of charge or for nominal consideration – (25)

Assets and resources provided free of charge Transport Ticketing Authority (32) (43) Department of Human Services (20) (20) Department of Sustainability and Environment (30) – Total assets provided free of charge or for nominal consideration 9 (82) (63) Total fair value of assets and services provided free of charge or for nominal consideration (82) (88)

89 Department of Transport Annual Report 2009-10 Note 7. Other economic flows included in net result

2010 2009 (a) Net gain/(loss) on non-financial assets Note $’000 $’000

G ross proceeds from sale of property, plant and equipment Leased vehicles 684 869 Total proceeds 684 869

G pross dis osals of property, plant and equipment Land (61) – Buildings (4) – Infrastructure (237) (673) Plant and equipment (165) (1,703) Leasehold improvements (48) (1,193) Leased vehicles (698) (955) Previous project expenditure capitalised (4,424) – Total disposals of property, plant and equipment 9 (5,637) (4,524)

Re valuatION write-downs Land (151) – Freehold buildings (16,118) – Infrastructure (216) – Total revaluation write-downs (16,485) – Total net gain/(loss) on non-financial assets (21,438) (3,655)

2010 2009 Note 7(b). Other gains/(losses) from other economic flows Note $’000 $’000

Net gain/(loss) arising from revaluation of long service leave liability (a) (221) (553) Total other gains/(losses) from other economic flows (221) (553)

(a) Revaluation gain/(loss) due to changes in bond rates.

90 Note 8. Receivables

2010 2009 $’000 $’000

Curr r eNT eceivables

Statutory Amounts owing from Victorian Government (i) 539,440 435,134 GST input tax credit recoverable from the ATO 46,626 39,400

Contractual Sale of services 952 23,604 Other receivables(ii) 28,425 34,652 Total current receivables 615,443 532,790

NON- current receivables

Statutory Amounts owing from Victorian Government (i) 4,571 3,795 Total non-current receivables 4,571 3,795 Total receivables 620,014 536,585

(i) The amounts recognised from Victorian Government represent funding for all commitments incurred through the appropriations and are drawn from the Consolidated Fund as the commitments fall due. (ii) The average credit period on sales of goods is 30 days. No interest is charged on receivables.

Nature and extent of risk arising from receivables Please refer to note 14(c) for the nature and extent of credit risk arising from contractual receivables.

Ageing analysis of receivables Please refer to note 14(b) for the ageing analysis of receivables.

91 Department of Transport Annual Report 2009-10 Note 9. Property, plant and equipment

Classification by ‘Transportation and Communications’ purpose group – movements in carrying amounts. 2009 2008 $’000 $’000

Land at fair value At cost of acquisition 1,750 – At valuation 2010 360,755 – At valuation 2008 – 77,664 Total land 362,505 77,664

Buildings at fair value At valuation 2010 522,197 – At valuation 2007 – 2,925 At valuation 2005 – 80 Less: accumulated depreciation – (602) Total buildings 522,197 2,403

Infrastructure at fair value At cost of acquisition 45 1,591 At carrying amount 263 – At valuation 2010 157,110 – At valuation 2005 – 10,825 Less: accumulated depreciation (13) (2,734) Total infrastructure 157,405 9,682

Plant and equipment at fair value At valuation 2010 5,629 4,713 Less: accumulated depreciation (3,744) (3,297) Total plant and equipment 1,885 1,416

92 Note 9. Property, plant and equipment (continued)

2009 2008 $’000 $’000

Leasehold improvement at fair value At cost of acquisition 37,516 38,021 Less: accumulated depreciation (9,543) (4,955) Total buildings leasehold 27,973 33,066

Leased vehicles at cost At cost of acquisition 4,514 4,374 Less: accumulated depreciation (1,303) (986) Total leased vehicles 3,211 3,388

Cultural assets at fair value At valuation 2010 1,754 – Less: accumulated depreciation – – Total cultural assets 1,754 –

Assets under construction at cost Infrastructure 314,974 255,813 Total property under construction 314,974 255,813 Net carrying amount of property, plant and equipment 1,391,904 383,432

93 Department of Transport Annual Report 2009-10 Valuations Non-current physical assets measured at fair value are revalued in accordance with Financial Reporting Direction 103D Non-Current Physical Assets issued by the Minister for Finance. This revaluation process normally occurs every five years, based on the asset’s Government Purpose Classification and prescribed time frame, but may occur more frequently if fair value assessments indicate material changes in values. Revaluation increases or decreases arise from differences between an asset’s carrying value and fair value.

Revaluation increases are credited directly to equity in the revaluation reserve, except to the extent that an increase reverses a revaluation decrease, in respect of that asset, previously recognised as an expense (other economic flows) in the net result; the increase is recognised as income (other economic flows) in determining the net result.

Revaluation decreases are recognised immediately as expenses (other economic flows) in the net result except to the extent that a credit balance exists in the revaluation reserve in respect of the same asset; the decrease is treated as a reduction to the revaluation reserve.

DOT’s scheduled revaluation of non-current physical assets was due in the financial year commencing 1 July 2009. As a result, assets classed as land, buildings and infrastructure were independently revalued in the 2010 financial year. Depreciation The following expected useful lives of assets are used in the calculation of depreciation:

Astes e cat gory Expected useful life (years) Buildings at fair value 22-90 Infrastructure at fair value 15 to 50 Plant and equipment at fair value Furniture and fittings 10 Computer equipment 3 to 4 Field plant and scientific equipment 1 to 41 Office machines and equipment 5 IT infrastructure 4 Leasehold improvements at fair value 15 Leased vehicles at fair value 3 Cultural assets at fair value 100

94 Note 9. Property, plant and equipment (continued)

Classification by ‘Transportation and communications’ purpose group – movements in carrying amounts

Plant and Leasehold Leased Cultural Assets under Land Buildings Infrastructure equipment improvement vehicles assets construction Total Note $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Carrying amount at 1 July 2008 207,665 7,147 41,697 3,755 26,680 2,888 - 170,245 460,077 Additions – – 286 1 4,780 2,180 – 85,568 92,815 Disposals/write offs 7(a) – – (673) (1,703) (1,193) (955) – – (4,524) Acquisitions through administrative restructures 3(i) – – – – – – – – – Relinquishments through administrative restructures 3(iii) (130,000) (4,556) (31,080) (59) (1,200) – – (2,389) (169,284) Net revaluation increments/decrements 21(b) – – – – – – – – – Revaluation write downs 7(a) – – – – – – – – – Depreciation/amortisation expense 6(d) – (188) (1,492) (578) (1,246) (687) – – (4,191) Assets received as contributed capital 21(c) – – – – – – – 8,305 8,305 Asset received free of charge – – 272 – – 25 – – 297 Assets provided free of charge 6(e) – – – – – (63) – – (63) Transfers between classes (1) – 672 – 5,245 – – (5,916) – Carrying amount at 30 June 2009 77,664 2,403 9,682 1,416 33,066 3,388 – 255,813 383,432

Additions 1,750 – 71 521 1,013 1,283 – 56,088 60,725 Disposals/write offs 7(a) (61) (4) (237) (165) (48) (698) – (4,424) (5,637) Acquisitions through administrative restructures 3(i) 132,280 535,611 19,289 479 – – 875 7,997 696,531 Relinquishments through administrative restructures 3(iii) – – – – – – – – – Net revaluation increments/decrements 21(b) 151,024 9,613 130,048 414 – – 924 – 292,023 Revaluation write-downs 7(a) (151) (16,118) (216) – – – – – (16,485) Depreciation/amortisation expense 6(d) – (9,227) (1,495) (589) (6,120) (760) (175) – (18,366) Assets received as contributed capital 21(c) – – – – – – – – – Asset received free of charge – – 263 – – 81 – – 343 Assets provided free of charge 6(e) – – – – – (82) – – (82) Transfers between classes – (81) – (191) 62 – 130 (500) (580) Carrying amount at 30 June 2010 362,505 522,197 157,405 1,885 27,973 3,211 1,754 314,974 1,391,904

95 Department of Transport Annual Report 2009-10 Classification by ‘Transportation and communications’ purpose group – movements in carrying amounts

Plant and Leasehold Leased Cultural Assets under Land Buildings Infrastructure equipment improvement vehicles assets construction Total Note $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Carrying amount at 1 July 2008 207,665 7,147 41,697 3,755 26,680 2,888 - 170,245 460,077 Additions – – 286 1 4,780 2,180 – 85,568 92,815 Disposals/write offs 7(a) – – (673) (1,703) (1,193) (955) – – (4,524) Acquisitions through administrative restructures 3(i) – – – – – – – – – Relinquishments through administrative restructures 3(iii) (130,000) (4,556) (31,080) (59) (1,200) – – (2,389) (169,284) Net revaluation increments/decrements 21(b) – – – – – – – – – Revaluation write downs 7(a) – – – – – – – – – Depreciation/amortisation expense 6(d) – (188) (1,492) (578) (1,246) (687) – – (4,191) Assets received as contributed capital 21(c) – – – – – – – 8,305 8,305 Asset received free of charge – – 272 – – 25 – – 297 Assets provided free of charge 6(e) – – – – – (63) – – (63) Transfers between classes (1) – 672 – 5,245 – – (5,916) – Carrying amount at 30 June 2009 77,664 2,403 9,682 1,416 33,066 3,388 – 255,813 383,432

Additions 1,750 – 71 521 1,013 1,283 – 56,088 60,725 Disposals/write offs 7(a) (61) (4) (237) (165) (48) (698) – (4,424) (5,637) Acquisitions through administrative restructures 3(i) 132,280 535,611 19,289 479 – – 875 7,997 696,531 Relinquishments through administrative restructures 3(iii) – – – – – – – – – Net revaluation increments/decrements 21(b) 151,024 9,613 130,048 414 – – 924 – 292,023 Revaluation write-downs 7(a) (151) (16,118) (216) – – – – – (16,485) Depreciation/amortisation expense 6(d) – (9,227) (1,495) (589) (6,120) (760) (175) – (18,366) Assets received as contributed capital 21(c) – – – – – – – – – Asset received free of charge – – 263 – – 81 – – 343 Assets provided free of charge 6(e) – – – – – (82) – – (82) Transfers between classes – (81) – (191) 62 – 130 (500) (580) Carrying amount at 30 June 2010 362,505 522,197 157,405 1,885 27,973 3,211 1,754 314,974 1,391,904

96 Note 10. Intangible assets

tlCapi a ised software development Work in progress (Software) Deferred expenditure Total 2010 2009 2010 2009 2010 2009 2010 2009 Note $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Gross carrying amount Opening balance 28,347 28,351 21,349 15,347 – 47,422 49,696 91,120 Additions – – 8,414 6,002 – – 8,414 6,002 Disposals or classified as held for sale – (4) – – – – – (4) Transfers through administrative restructures 3(a) – – – – – (47,422) – (47,422) Transfers between classes 18,419 – (17,839) – – – 580 – Closing balance 46,766 28,347 11,924 21,349 – – 58,690 49,696

Accumulated amortisation and impairment Opening balance (24,465) (21,246) – – – – (24,465) (21,246) Amortisation expense 6(d) (1,537) (3,223) – – – – (1,537) (3,223) Disposals or classified as held for sale – 4 – – – – – 4 Closing balance (26,002) (24,465) – – – – (26,002) (24,465) Net book value at the end of the financial year 20,764 3,882 11,924 21,349 – – 32,688 25,231

97 Department of Transport Annual Report 2009-10 Capitalised software development Wo n rk i progress (Software) Deferred expenditure Total 2010 2009 2010 2009 2010 2009 2010 2009 Note $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Gross carrying amount Opening balance 28,347 28,351 21,349 15,347 – 47,422 49,696 91,120 Additions – – 8,414 6,002 – – 8,414 6,002 Disposals or classified as held for sale – (4) – – – – – (4) Transfers through administrative restructures 3(a) – – – – – (47,422) – (47,422) Transfers between classes 18,419 – (17,839) – – – 580 – Closing balance 46,766 28,347 11,924 21,349 – – 58,690 49,696

Accumulated amortisation and impairment Opening balance (24,465) (21,246) – – – – (24,465) (21,246) Amortisation expense 6(d) (1,537) (3,223) – – – – (1,537) (3,223) Disposals or classified as held for sale – 4 – – – – – 4 Closing balance (26,002) (24,465) – – – – (26,002) (24,465) Net book value at the end of the financial year 20,764 3,882 11,924 21,349 – – 32,688 25,231

98 Note 11. Payables

2010 2009 $’000 $’000

Curr eNT payables Contractual Creditors and accruals (i) 458,403 299,266 Trust fund creditors and accruals 293,442 212,791 Unearned/prepaid income 22,843 7,873 Statutory Taxes payable 4,425 958 Total current payables 779,113 520,888

(i) The average credit period for creditors is 30 days, a period in which no interest is charged.

(a) Maturity analysis of payables Please refer to note 14(e) for the ageing analysis of contractual payables.

(b) Natur e and extent of risk arising from payables Please refer to note 14(f) for interest rate contractual exposure.

Note 12. Borrowings 2010 2009 Note $’000 $’000

Curr b eNT orrowings Motor vehicle lease liability (i) 20 1,349 1,227 Advance from Victorian Government to cover the net 11,055 8,241 GST payable by Department of Transport at 30 June (ii) Advance from Victorian Government for VicRoads 148 – traffic signal retrofit program (iii) Total current borrowings 12,552 9,468

Nn o -current borrowings Motor vehicle lease liability (i) 20 1,910 2,206 Southern Cross Station Transport Interchange 20 370,654 – Facility lease liability Total non-current borrowings 372,564 2,206 Total borrowings 385,116 11,674

(i) Secured by the assets leased. Finance leases are effectively secured as the rights to the leased assets revert to the lessor in the event the lessee defaults on the lease. (ii) Advance from Victorian Government to cover the net GST payable is non-interest bearing. (iii) Adv ance from Victorian Government for VicRoads traffic signal retrofit program is non-interest bearing. It is a three year program proposed to replace all traffic signals currently fitted with incandescent lamps with Light Emitting Diode (LED) technology, at an estimated cost of $25 million.

(a) Maturity analysis of borrowings Please refer to note 14(c) for the maturity analysis of borrowings.

(b) Natur e and extent of risk arising from borrowings Please refer to note 14(c) for the nature and extent of risks arising from borrowings.

99 Department of Transport Annual Report 2009-10 Note 13. Provisions

2010 2009 Note $’000 $’000

Curr eNT provisions Employee benefits – annual leave (i) Unconditional and expected to settle within 12 months (ii) 4,494 3,921 Unconditional and expected to settle after 12 months (iii) 3,489 3,086 Employee benefits – long service leave (i) Unconditional and expected to settle within 12 months (ii) 2,207 1,775 Unconditional and expected to settle after 12 months (iii) 10,194 8,448 Employee benefits – bonus provision (i) 1,416 1,378 13(a) 21,800 18,608 Provisions related to employee benefit on-costs Unconditional and expected to be settled within 12 months (ii) 1,086 936 Unconditional and expected to be settled after 12 months (iii) 2,282 1,973 13(a) 3,368 2,909 Other provisions Provision for the employee entitlements of rail operators (iv) 13(b) 2,396 3,050 Provision for fringe benefits tax 13(b) 174 490 2,570 3,540 Total current provisions 27,738 25,057

Nn o -current provisions Employee benefits and related on-costs Employee benefits (v) 13(a) 3,963 3,291 Employee benefits on-costs 13(a) 607 504 4,570 3,795 Other provisions Provision for the employee entitlements of rail operators (iv) 13(b) 231,517 216,726 Provision for public liability claims (vi) 13(b) 2,139 1,786 Provision for dismantling property, plant and equipment 13(b) 1,075 1,075 Other 13(b) – 4 234,731 219,591 Total non-current provisions 239,301 223,386 Total provisions 267,039 248,443

(i) Provisions for employee benefits consist of amounts for annual leave and long service leave accrued by employees, not including on-costs. (ii) The amounts disclosed are nominal amounts. (iii) The amounts disclosed are discounted to present values. (iv) The State provides a guarantee for the employee entitlements of the employees of the public transport operators. (v) The amounts disclosed represents long service leave entitlements for employees with less than seven years of continuous service discounted to present value. (vi) This provision is for all active claims of public liability on public transport infrastructure.

100 Note 13. Provisions (continued)

(a) Employee benefits and related on-costs

2010 2009 $’000 $’000

Current employee benefits Annual leave entitlements 7,983 7,007 Unconditional long service leave entitlements 12,401 10,223 Accrued performance incentive 1,416 1,378 Total current provisions for employee benefits 21,800 18,608

Non-current employee benefits Conditional long service leave entitlements 3,963 3,291 Total non-current provisions for employee benefits 3,963 3,291 Total employee benefits 25,763 21,899

On-costs Current on-costs 3,368 2,909 Non-current on-costs 607 504 Total on-costs 3,975 3,413 Total employee benefits and related on-costs 29,738 25,312

101 Department of Transport Annual Report 2009-10 (b) Movement in provisions Rail Dismantling Employee operators’ Public property, Fringe Employee Bonus benefits employee liability plant and benefits benefits provision on-costs benefits claims equipment tax Other Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Opening balance 20,521 1,378 3,413 219,776 1,786 1,075 490 4 248,443 at 1 July 2009

Additional provisions 3,724 38 538 18,476 1,167 – 538 – 24,481 recognised Reductions arising from payments/other – – – (4,339) (110) – (854) (4) (5,307) sacrifices of future economic benefits Reductions resulting from re-measurement – – – – (704) – – – (704) or settlement without cost Unwinding of discount and effect of 192 – 29 – – – – – 221 changes in the discount rate Reductions due (90) – (5) – – – – – (95) to transfers out

Closing balance 24,347 1,416 3,975 233,913 2,139 1,075 174 – 267,039 at 30 June 2010

Current 20,384 1,416 3,368 2,396 – – 174 – 27,738 Non-current 3,963 – 607 231,517 2,139 1,075 – – 239,301 24,347 1,416 3,975 233,913 2,139 1,075 174 – 267,039

102 Note 14. Financial instruments

(a) Financial risk management objectives and policies

DOT’s principal financial instruments comprise of: »» Cash and cash deposits »» Receivables (excluding statutory receivables) »P» ayables (excluding statutory payables) »» Borrowings

Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement, and the basis on which income and expenses are recognised, with respect to each class of financial asset and financial liability above are disclosed in note 1 to the financial statements.

Categorisation of financial instruments(i)

Contractual financial Contractual financial assets – loans liabilities at and receivables amortised cost Total 2010 Note $’000 $’000 $’000

Contractual financial assets Cash and cash deposits 525,752 – 525,752 Receivables 8 Sale of services 952 – 952 Other receivables 28,425 – 28,425 Total contractual financial assets (ii) 555,129 – 555,129

Contractual financial liabilities Payables 11 Creditors and accruals – 458,403 458,403 Trust fund creditors and accruals – 293,442 293,442 Unearned/prepaid income – 22,843 22,843 Borrowings 12 Finance lease liabilities – Motor Vehicle – 3,259 3,259 Finance lease liabilities – Southern Cross – 370,654 370,654 Station Transport Interchange Facility Advance from Victorian Government to cover – 11,055 11,055 GST payable Advance from Victorian Government for – 148 148 VicRoads traffic signal retrofit program Total contractual financial liabilities (iii) – 1,159,804 1,159,804

103 Department of Transport Annual Report 2009-10 Contractual financial Contractual financial assets – loans liabilities at and receivables amortised cost Total 2009 Note $’000 $’000 $’000

Contractual financial assets Cash and cash deposits 383,318 – 383,318 Receivables 8 Sale of services 23,604 – 23,604 Other receivables 34,653 – 34,653 Total contractual financial assets (ii) 441,575 – 441,575

Contractual financial liabilities Payables 11 Creditors and accruals – 299,266 299,266 Trust fund creditors and accruals – 212,791 212,791 Unearned/prepaid income – 7,873 7,873 Borrowings 12 Finance lease liabilities – Motor Vehicle – 3,434 3,434 Finance lease liabilities – Southern Cross – – – Station Transport Interchange Facility Advance from Victorian Government to cover – 8,241 8,241 GST payable Advance from Victorian Government for – – – VicRoads traffic signal retrofit program Total contractual financial liabilities (iii) – 531,605 531,605

(i) The amount disclosed represents the carrying amount for the reporting period. (ii) The amount of receivables disclosed excludes statutory receivables (i.e. amounts owing from Victorian Government and GST input tax credit recoverable). (iii) The amount of payables disclosed excludes statutory payables (i.e. GST output tax payable).

104 Note 14. Financial instruments (continued)

Net holding gain/(loss) on financial instruments by category

Total interest income/(expense) 2010 $’000

Contractual financial assets Financial assets – loans and receivables 2,032 Total contractual financial assets 2,032

Contractual financial liabilities Financial liabilities at amortised cost (i) (32,119) Total contractual financial liabilities (32,119)

2009

Contractual financial assets Financial assets – loans and receivables 2,362 Total contractual financial assets 2,362

Contractual financial liabilities Financial liabilities at amortised cost (248) Total contractual financial liabilities (248)

(i) Includes interest for Southern Cross Station Transport Interchange Facility, which transferred to DOT as at 31 July 2009.

(b) Credit risk exposures

Credit risk arises from the contractual financial assets of DOT, which comprise cash and cash deposits, and non-statutory receivables. DOT’s exposure to credit risk arises from the potential default of counter party on their contractual obligations resulting in financial loss to DOT. Credit risk is measured at fair value and is monitored on a regular basis.

Credit risk associated with DOT’s contractual financial assets is minimal because the main debtor is the Victorian Government. For debtors other than government, DOT’s policy is to only deal with entities with high credit ratings, receivable amount from these debtors are immaterial.

105 Department of Transport Annual Report 2009-10 In addition, DOT does not engage in hedging for its contractual financial assets and mainly obtains financial assets that are of fixed interest rate except for cash assets, which are mainly cash at bank.

Except as otherwise detailed in the following table, the carrying amount of contractual financial assets recorded in the financial statements, net of any allowances for losses, represents DOT’s maximum exposure to credit risk without taking account of the value of any collateral obtained. Credit quality of contractual financial assets that are neither past due nor impaired Government Other (min agencies (AAA BBB Credit credit rating) rating) Total 2010 $’000 $’000 $’000

Cash and cash deposits 525,752 – 525,752 Receivables Sale of services 952 – 952 Other receivables 25,635 2,790 28,425 Total contractual financial assets 552,339 2,790 555,129

2009

Cash and cash deposits 383,318 – 383,318 Receivables Sale of services 22,676 928 23,604 Other receivables 34,653 – 34,653 Total contractual financial assets 440,647 928 441,575

Contractual financial assets that are either past due or impaired Currently DOT does not hold any collateral as security nor credit enhancements relating to any of its financial assets.

There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they are stated at the carrying amounts as indicated. The following table discloses the ageing only of contractual financial assets that are past due but not impaired.

106 Note 14. Financial instruments (continued)

Ageing analysis of contractual financial assets(i)

Carrying Not past due and Past due but not impaired Impaired amount not impaired Less than 3 months financial 1 month 1-3 months -1 year 1-5 years assets 2010 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Contractual financial assets Cash and cash 525,752 525,752 – – – – – deposits Receivables Sales of services 952 952 – – – – – Other 28,425 27,103 310 309 65 638 – receivables 555,129 553,807 310 309 65 638 –

2009

Contractual financial assets Cash and cash 383,318 383,318 – – – – – deposits Receivables Sales of services 23,604 20,967 585 423 162 1,466 – Other 34,653 34,653 – – – – – receivables 441,575 438,938 585 423 162 1,466 –

(i) Ageing analysis of financial assets excludes the types of statutory financial assets (e.g. amounts owing from Victorian Government and GST input tax credit recoverable).

107 Department of Transport Annual Report 2009-10 (c) Liquidity risk

Liquidity risk is the risk that DOT would be unable to meet its financial obligations as and when they fall due. DOT operates under the Government fair payments policy of settling financial obligations within 30 days and in the event of a dispute, making payments within 30 days from the date of resolution. It also continuously manages risk through monitoring future cash flows.

DOT’s exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk.

The following table discloses the contractual maturity analysis for DOT’s contractual financial liabilities. Maturity analysis of contractual financial liabilities(ii)

Maturity dates Carrying Nominal Less than 1-3 3 months amount amount 1 month months -1 year 1-5 years 5+ years 2010 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Contractual financial liabilities Payables (i) Creditors and accruals 458,403 458,403 458,271 90 43 (1) – Trust fund creditors and accruals 293,442 293,442 293,443 – (1) – – Unearned/prepaid income 22,843 22,843 22,843 – – – – Borrowings Finance lease liabilities – Motor Vehicle 3,259 3,538 313 177 1,035 2,012 – Finance lease liabilities – Southern Cross 370,654 1,009,070 – 7,317 22,225 125,739 853,788 Station Transport Interchange Facility Advance from Victorian Government to 11,055 11,055 11,055 – – – – cover GST payable Advance from Victorian Government for 148 148 148 – – – – VicRoads traffic signal retrofit program 1,159,804 1,798,499 786,073 7,584 23,302 127,750 853,788

2009

Contractual financial liabilities Payables (i) Creditors and accruals 299,266 299,266 299,268 (2) (1) – – Trust fund creditors and accruals 212,791 212,791 212,801 (10) – – – Unearned/prepaid income 7,873 7,873 7,873 – – – – Borrowings – Finance lease liabilities – Motor Vehicle 3,434 3,802 249 176 1,013 2,365 – Finance lease liabilities – Southern Cross – – – – – – – Station Transport Interchange Facility Advance from Victorian Government to 8,241 8,241 8,241 – – – – cover GST payable Advance from Victorian Government for – – – – – – – VicRoads traffic signal retrofit program 531,605 531,973 528,432 164 1,012 2,365 –

(i) The carrying amounts disclosed exclude statutory amounts (e.g. GST payable). (ii) Maturity analysis is presented using the contractual undiscounted cash flows. 108 Note 14. Financial instruments (continued)

(d) Market risk

DOT’s exposures to market risk are primarily through interest rate risk. DOT has no exposure to foreign currency or other price risk. Objectives, policies and processes used to manage each of these risks are disclosed in the paragraphs below. Interest rate risk Exposure to interest rate risk is insignificant and might arise primarily through DOT’s interest bearing assets and liabilities. Minimisation of risk is achieved by mainly undertaking fixed rate or non-interest bearing financial instruments. For financial liabilities, DOT mainly undertakes financial liabilities with relatively even maturity profiles.

The carrying amounts of financial assets and financial liabilities that are exposed to interest rates are set out in the table below. Interest rate exposure of financial instruments

Interest rate exposure

W eighted aver- Carrying Fixed Variable Non-interest age effective amount interest rate interest rate bearing 2010 interest rate % $’000 $’000 $’000 $’000

Contractual financial assets Cash and cash deposits 3.82% 525,752 50,000 – 475,752 Receivable Sales of services 952 – – 952 Other receivables 28,425 – – 28,425 555,129 50,000 – 505,129

Contractual financial liabilities Payables Creditors and accruals 458,403 - - 458,403 Trust fund creditors and accruals 293,442 - - 293,442 Unearned/prepaid income 22,843 - - 22,843 Borrowings Finance lease liabilities – Motor Vehicle 7.23% 3,259 3,259 - - Finance lease liabilities – Southern Cross Station Transport 8.65% 370,654 370,654 - - Interchange Facility Advance from Victorian Government 11,055 - - 11,055 to cover GST payable Advance from Victorian Government for VicRoads traffic signal 148 - - 148 retrofit program 1,159,804 373,913 - 785,891

109 Department of Transport Annual Report 2009-10 Interest rate exposure

W eighted aver- Carrying Fixed Variable Non-interest age effective amount interest rate interest rate bearing 2009 interest rate % $’000 $’000 $’000 $’000

Contractual financial assets Cash and cash deposits 5.08% 383,318 50,000 – 333,318 Receivable Sales of services 23,604 – – 23,604 Other receivables 34,653 – – 34,653 441,575 50,000 – 391,575

Contractual financial liabilities Payables Creditors and accruals 299,266 – – 299,266 Trust fund creditors and accruals 212,791 – – 212,791 Unearned/prepaid income 7,873 – – 7,873 Borrowings Finance lease liabilities – Motor Vehicle 7.39% 3,434 3,434 – – Finance lease liabilities – Southern Cross – – – – Station Transport Interchange Facility Advance from Victorian Government to – – – – cover GST payable Advance from Victorian Government for 8,241 – – 8,241 VicRoads traffic signal retrofit program 531,605 3,434 – 528,171

Sensitivity disclosure analysis Taking into account past performance, future expectations and economic forecasts, DOT believes there are no material movements ‘reasonably possible’ over the next 12 months: a parallel shift of +2.0 per cent and -2.0 per cent in market interest rates from year-end rates.

The impact on net operating result and equity for each category of financial instrument held by DOT at year-end as presented to key management personnel, if the above movements were to occur, is immaterial for the 2009 and 2010 financial years. (e) Fair value of financial assets and liabilities

DOT considers that the carrying amount of financial assets and financial liabilities recorded in the financial statements approximates their fair values.

(i) On-statement of balance sheet The net fair value of cash and cash equivalents and non-interest bearing monetary financial assets and financial liabilities of DOT equals their carrying amounts.

(ii) Off-statement of balance sheet DOT has potential financial assets and liabilities, which may arise from certain contingencies disclosed in note 16 and 17. As explained in that note 17, contingent liabilities by definition are similar to a liability – the distinguishing feature being the uncertainty over the Government’s obligation.

110 Note 15. Commitments for expenditure

The following commitments have not been recognised as liabilities in the financial statements.

2010 2009 RAV IL SER ICE COMMITMENTS $’000 $’000

Payable: Not longer than one year 2,000,443 888,180 Longer than one year but not longer than five years 4,400,542 1,163,347 Longer than five years 2,466,260 2,330,552 Rail commitments (inclusive of GST) 8,867,245 4,382,079 Less: GST recoverable from the Australian Taxation Office (806,113) (398,371) Rail commitments (exclusive of GST) 8,061,132 3,983,709

BUS COMMITMENTS Non-discounted

Payable: Not longer than one year 911,601 721,044 Longer than one year but not longer than five years 3,078,156 2,096,822 Longer than five years 1,223,499 504,561 Bus commitments (inclusive of GST) 5,213,256 3,322,427 Less: GST recoverable from the Australian Taxation Office (473,932) (302,039) Bus commitments (exclusive of GST) 4,739,324 3,020,388

Capt i al expenditure

Payable: Not longer than one year 443,889 277,190 Longer than one year but not longer than five years 184,193 255,537 Longer than five years – 141,983 Capital expenditure commitments (inclusive of GST) 628,082 674,709 Less: GST recoverable from the Australian Taxation Office (57,098) (61,337) Capital expenditure commitments (exclusive of GST) 570,984 613,372

Les a es

Minimum lease payments for non-cancellable leases payable: Within one year 18,573 20,087 Longer than one year but not longer than five years 69,790 70,281 Longer than five years 136,658 155,122 Leases commitments (inclusive of GST) 225,021 245,490 Less: GST recoverable from the Australian Taxation Office (20,456) (22,317) Leases commitments (exclusive of GST) 204,565 223,173 Future minimum lease payments expected to be received in – – relation to non-cancellable sub-leases of operating leases

Lease liabilities and non-cancellable operating lease commitments are disclosed in note 20 to the financial statements.

111 Department of Transport Annual Report 2009-10 Rail and bus commitments DOT has entered into a number of contracts with private operators to provide Victoria’s train, tram and bus services. Under the terms of these agreements, DOT provides subsidies for transport services and capital commitments.

The partnership agreements with Connex and Yarra Trams ended on 29 November 2009. No provision of commitments has been made for these payments as they have either been fully paid or fully accounted for in the accruals.

In August 2009, the new franchise agreements with the new train and tram service operators Metro Trains Melbourne (MTM) and Keolis Downer EDI – Yarra Trams (KDR) were signed. These contracts became effective from 30 November 2009. The initial franchise period for each of these agreements is eight years and is subject to a seven year extension conditional upon certain requirements being met.

A new Metlink Services Agreement has been signed. It has the same initial contract period as the new train and tram partnership agreements (i.e. eight years).

The partnership commitments with MTM and Yarra Trams (KDR) have therefore been calculated up to the end of the Initial Franchise Period with the exception of the rolling stock lease payments for which the Director is legally committed beyond the initial franchise period.

As per the franchise agreement the train and tram franchisees are entitled to a New Ticketing Revenue Guarantee Payment (in lieu of farebox revenue) which will continue to be paid until approximately a year after the last Metcard ticket is sold. The farebox revenue is currently being received in its entirety by DOT and will be distributed to franchisees from the date after the New Ticketing Guarantee Payment ceases to be paid. Metlink In addition, to the train and tram arrangements, an industry wide body, Metlink (responsible for providing and overseeing network-wide ticketing, marketing, information and complaints handling services) has been engaged. Metlink mainly subsumes the functions of the VicTrip and the Melbourne Passenger Growth Initiative. The farebox distribution function was transferred from Metlink to the Transport Ticketing Authority (TTA) on 1 July 2008.

112 Note 15. Commitments for expenditure (continued)

V/Line Passenger rail services V/Line Passenger rail services reverted to government control with a partnership arrangement established for the period from 1 October 2003 to 29 October 2006. The current franchise agreement has been further extended until 31 December 2012. To date no new V/Line Franchise Agreement has been signed. V/Line Passenger commitments have been presented up until 31 December 2012 with the exception of rolling stock lease payments for which the Director is legally committed beyond 31 December 2012.

In addition to the above, payments are made by DOT to the Transport Ticketing Authority (TTA) and VicTrack. The contract commitments to the TTA and VicTrack have been calculated up to 30 June 2011. Southern Cross Station Authority Legislation introduced into Parliament on 3 December 2008 provided for the abolition of the Southern Cross Station Authority (SCSA) and the transfer of its operative functions to the Secretary. The contract commitments to the SCSA, including the Public Private Partnership (PPP) arrangement, were novated to the Director and have been paid to Civic Nexus Pty Ltd from 31 July 2009. These commitments extend until 30 June 2036. Capital expenditure commitments Capital expenditure commitments include contracts for capital projects relating to infrastructure and transport related projects separate and in addition to the commitments entered into through the partnership agreement. These commitments have been signed prior to 30 June 2010 and have established a legal and binding obligation on DOT to make future payments. Lease commitments Lease commitments include contracts for accommodation and photocopier leases.

Note 16. Contingent assets

Contingent assets arise from guarantees, indemnities and other forms of support provided to government departments and from legal disputes and other claims by government departments arising from a past event. Contingent assets by definition are similar to an asset with the distinguishing feature being the uncertainty over DOT’s entitlement. Contingent assets arising from GST Eligibility to claim input tax credits for payment of certain transport related subsidies was heard in October 2009 and was found in favour of DOT. In November 2009 the Commissioner of Taxation appealed the decision. The Appeal was heard and found in favour of DOT. The Commissioner may Appeal that decision to the High Court. As at 30 June 2010 the contingent asset is unquantifiable.

113 Department of Transport Annual Report 2009-10 Note 17. Contingent liabilities

Contingent liabilities arise from guarantees, indemnities and other forms of support provided by the Government and from legal disputes and other claims against the Government arising from a past event. Contingent liabilities by definition are similar to a liability with the distinguishing feature being the uncertainty over the Government’s obligation. Unquantifiable contingent liabilities Public transport rail partnership agreements The Director of Public Transport (the Director), on behalf of the Crown, entered into partnership contractual arrangements with franchisees to operate metropolitan services in the State, operative from 30 November 2009 until 30 November 2017. The following summarises the major contingent liabilities arising from the arrangements. Contingent liabilities on early termination or expiry of partnership agreement Partnership assets To maintain continuity of services, the assets, at early termination or expiry of the franchise agreement, will revert to the Director or a successor. In the case of some assets, a reversion back to the Director would entail those assets being purchased.

Unfunded Superannuation At the early termination or expiry of the contract, the Director will assume any unfunded superannuation amounts (apart from contributions the operator is required to pay over the contract term) to the extent that the State becomes the successor operator. Contingent liabilities arising from litigation DOT is defending, on behalf of the State, a claim for damages relating to the development and management of an intermodal freight terminal in Gippsland in which the plaintiff is seeking damages of $44.7M. The information usually required by AASB 137 Provisions, Contingent Liabilities, and Contingent Assets is not disclosed on the grounds that it can be expected to prejudice seriously the outcome of the litigation.

Details and estimates of other contingent liabilities are as follows:

2010 2009 Qa u nTIFIable contingent liabilities $’000 $’000

Legal disputes 260 1,296 Contractual obligations – 5,000 Personal injury – 740 260 7,036

114 Note 18. Superannuation

Government employees’ superannuation schemes

No liability is recognised in the balance sheet for DOT’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 operating statement of DOT.

The name and details of the major employee superannuation funds and contributions (including salary sacrifice contributions) made by DOT are as follows:

Paid contribution for the year 2010 2009 FUND $’000 $’000

D EFINED BENEFIT SCHEME State Superannuation Scheme – revised and new 1,259 1,276 Victorian Water Superannuation Fund 40 38 Transport Superannuation Fund 230 226 Total defined benefit plans 1,529 1,540

D EFINED CONTRIBUTION SCHEME VicSuper 10,024 10,468 Various other 2,777 3,789 Total defined contribution scheme 12,801 14,257 Total superannuation scheme 14,330 15,797

The above amounts were measured as at 30 June of each year, except for employer contributions payments made for years ended 30 June.

All employees of DOT 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.

There were no loans made by the superannuation funds to DOT during the year.

115 Department of Transport Annual Report 2009-10 Note 19. Cash flow information

(a) Reconciliation of cash and cash equivalents

2010 2009 Note $’000 $’000

Cash at bank and on hand (2,552) (3,978) Funds held in trust – cash 24 478,304 337,296 – short term deposit 24 50,000 50,000 Total cash and cash equivalents 525,752 383,318

The above figures are reconciled to cash at the end of the financial year as shown in the cash flow statement.

Due to the State of Victoria’s investment policy and government funding arrangements, DOT does not hold a large cash reserve in its bank accounts. Cash received by DOT from the generation of income is generally paid into the State’s bank account, known as the public account. Similarly, any departmental expenditure, including those in the form of cheques drawn by DOT for the payment of goods and services to its suppliers and creditors are made via the public account. The process is such that, the public account would remit to DOT the cash required for the amount drawn on the cheques. This remittance by the public account occurs upon the presentation of the cheques by DOT’s suppliers or creditors.

The above funding arrangements often result in departments having a notional shortfall in the cash at bank required for payment of unpresented cheques at the reporting date. At 30 June 2010, cash at bank included the amount of a notional shortfall for the payment of unpresented cheques of $2.716 million (2009 – $4.112 million).

116 Note 19. Cash flow information (continued)

(b) Non-cash financing and investing activities

2010 2009 Note $’000 $’000

Restructuring of administrative arrangements: Net assets transferred 9 – (169,284) Acquisition of property, plant and equipment by 9 1,283 2,180 means of finance leases Total non-cash financing and investing activities 1,283 (167,104)

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.

(c) Reconciliation of net result for the reporting period to net cash flows from operating activities

2010 2009 Note $’000 $’000

Net result for the reporting period 10,124 116,473

NON-C Ash MOVEMENTS Loss on disposal of non-current assets 7(a) 4,953 3,655 Depreciation and amortisation of non-current assets 6(d) 19,903 7,414 Resources and assets (received) provided (261) (273) free of charge Loss on revaluation of non-current assets 7(a) 16,485 –

M oveMENTs in assets and liabilities (net of restructuring) (Decrease)/increase in receivables (35,787) 53,627 (Decrease)/increase in prepayments 828 (588) (Decrease)/increase in payables 201,138 (92,455) Increase in provisions 17,608 21,481 Net cash flows from/(used in) operating activities 234,991 109,334

117 Department of Transport Annual Report 2009-10 Note 20. Leases

Leasing arrangements Finance lease liabilities payable The Southern Cross Station Authority (Authority) was abolished on 31 July 2009. All future lease commitments of the Authority immediately before its abolition were vested in the Secretary to DOT on behalf of the State. This includes the leasing arrangements with Civic-Nexus Pty Ltd (CNPL).

On 2 July 2002 the Authority and CNPL entered into Services and Development Agreement (SDA) for the redevelopment of Southern Cross Station (Station). Under the SDA, CNPL had to design, construct and commission the Station. Construction commenced in September 2002 and on 1 August 2006, CNPL was granted a 30 year lease over the Station and will have an obligation to operate and maintain the Station, at the end of the 30 year period, these rights and obligations transferred back to the State.

The agreement is deemed a finance lease because it effectively transfers the risks and benefits incidental to ownership of the leased asset to the State.

The Authority will make quarterly payments over a 30 year operating period which commenced from 27 April 2005. These future payments are subject to abatement in accordance with the terms and conditions of the SDA. The quarterly payments will reimburse CNPL for the capital cost (including financing costs) of constructing the Station. The Net Present Value (NPV) is calculated using a discount rate of 8.65% per annum and an inflation rate of 2.5% per annum or actual inflation, which ever is higher.

It is important to note that currently the actual cash payment to CNPL is less than the deemed Finance Lease Interest Expense. In this instance the finance lease liability will continue to increase to approximately $378m at the last quarter of 2014 when the cash payment will overtake the value of the finance lease interest. Due to these increases in debt there is no requirement to recognise a current liability in this note. Other finance lease liabilities payable The other finance lease entered into by DOT relates to motor vehicles with lease terms of three years or 60,000 kilometres, whichever occurs first.

118 Note 20. Leases (continued)

Minimum future Present value of minimum lease payments * future lease payments 2010 2009 2010 2009 Note $’000 $’000 $’000 $’000

Fn li anCE ease liabilities payable Not longer than one year 29,542 – – – Longer than one year and not longer than five years 125,739 – – – Longer than five years 853,788 – 370,654 –

O ther fINance lease liabilities payable Not longer than one year 1,526 1,436 1,349 1,227 Longer than one year and not longer than five years 2,012 2,365 1,910 2,206 Minimum lease payments* 1,012,607 3,801 373,913 3,433 Less future finance charges (638,694) (368) – – Present value of minimum lease payments 373,913 3,433 373,913 3,433

Included in the financial statements as: Current interest bearing liabilities 12 1,349 1,227 Non-current interest bearing liabilities 12 372,564 2,206 Total interest bearing liabilities 373,913 3,433

* Minimum future lease payments include the aggregate of all lease payments and any guaranteed residual. Minimum future lease payments for the Station will increase if there are upward movements in CPI.

119 Department of Transport Annual Report 2009-10 Note 21. Equity

2010 2009 Note $’000 $’000

(a) ACCumulated surplus/(deficit) Balance at beginning of financial year 351,882 154,993 Transfers from physical asset revaluation surplus 15 80,416 Total comprehensive result for the reporting period 10,124 116,473 Balance at end of financial year 362,021 351,882

(b) CoNTributions by owners Balance at beginning of financial year 126,633 319,971 Capital transactions with the state in its capacity as owner arising from: Capital appropriations 4 1,357,086 1,419,477 Capital contributions to agencies within the (1,401,542) (1,328,422) Transport portfolio* Capital contributed upon restructuring 3(i),(iii) 333,588 (292,698) administrative arrangements Capital contribution from other Victorian – 8,305 Government agencies Balance at end of financial year 415,765 126,633

(C) c Physi al asset revaluation surplus (i) Balance at beginning of financial year 72,060 152,476 Plus revaluation increments Land revaluation surplus 151,024 – Building revaluation surplus 9,613 – Infrastructure asset revaluation surplus 130,048 – Plant and equipment revaluation surplus 414 – Cultural asset revaluation surplus 924 – Total revaluation increments 292,023 – Transfers to accumulated surplus/(deficit) for (15) – disposal of asset Transfer to accumulated surplus/(deficit) due – (80,416) to machinary of government changes (ii) Balance at end of financial year** 364,068 72,060

(i) The physical asset revaluation surplus arises due to the net increase in the land, building leasehold, plant and equipment, infrastructure and cultural assets. (ii) The amount transferred relates to funds held in asset revaluation surplus in relation to Major Project Victoria assets. These assets were transferred to DIIRD in 2008-09. Refer also to note 3(iii).

120 Note 21. Equity (continued)

2010 2009 Note $’000 $’000

*Capt i al contributions to agencies within the Transport Portfolio VicTrack (rail services) 887,910 801,226 VicRoads (road services) 433,911 439,481 Public Transport Ticketing Body 51,700 80,690 Linking Melbourne Authority 28,021 6,036 Port of Melbourne Corporation – 989 Total capital contributions to agencies 1,401,542 1,328,422 within the Transport Portfolio

** BalanCE of each physical asset revaluation surplus at the end of financial year Land revaluation surplus 221,822 70,812 Building revaluation surplus 10,861 1,248 Infrastructure asset revaluation surplus 130,048 – Plant and equipment revaluation surplus 413 – Cultural asset revaluation surplus 924 – Total physical asset revaluation surplus 364,068 72,060

121 Department of Transport Annual Report 2009-10 Note 22. Administered (non-controlled) items

(a) Administered transactions

In addition to the specific departmental operations which are included in the financial statements (balance sheet, comprehensive operating statement and cash flow statement), DOT administers or manages other activities and resources on behalf of the State. The transactions relating to these State activities are reported as administered items in this note. Administered transactions give rise to income, expenses, assets and liabilities and are determined on an accrual basis. Administered income includes taxes, fees and fines and the proceeds from the sale of administered surplus land and buildings. Administered assets include government incomes earned but yet to be collected. Administered liabilities include government expenses incurred but yet to be paid. Both the controlled departmental financial statements and these administered items are consolidated into the financial statements of the State.

122 Note 22. Administered (non-controlled) items (continued)

Infrastructure Planning, Public Safety and Security Public Transport Services Delivery and Management TOTAL

2010 2009 2010 2009 2010 2009 2010 2009 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

A edmINIst red income from transactions Vehicle registration fees 853,633 801,860 – – – – 853,633 801,860 Stamp duty on vehicles and transfers 568,885 512,617 – – – – 568,885 512,617 Natural disaster funding – – – – 48,114 17,762 48,114 17,762 Driver licences 34,860 34,090 – – – – 34,860 34,090 CityLink concession deed income (refer note 22(b)) – – – – 27,850 39,142 27,850 39,142 Regulatory fees 22,410 22,098 – – – – 22,410 22,098 Transfer and permit fees 21,928 20,882 – – – – 21,928 20,882 Statutory fines 4 9 15,618 16,463 – – 15,622 16,472 Sale of goods and services 2,678 815 4 11 15 21 2,697 847 Commonwealth grants – 41,664 – – – 340,433 – 382,097 Other income 3,273 681 17,557 16,580 683 518 21,513 17,779 Total administered income from transactions 1,507,671 1,434,716 33,179 33,054 76,662 397,876 1,617,512 1,865,646

A edmINIst red expenses from transactions Payments into the Consolidated Fund (1,507,671) (1,434,716) (17,665) (19,272) (62,493) (489,274) (1,587,829) (1,943,262) Natural disaster expenditure – – – – (48,114) (17,762) (48,114) (17,762) CityLink concession deed expense (refer note 22(b)) – – – – (30,776) (30,300) (30,776) (30,300) Other expenses – – (6,788) (17,066) – – (6,788) (17,066) Total administered expenses from transactions (1,507,671) (1,434,716) (24,453) (36,338) (141,383) (537,336) (1,673,507) (2,008,390) Total administered comprehensive result – – 8,726 (3,284) (64,721) (139,460) (55,995) (142,744)

AD E MINIST RED Financial ASSETS Cash and receivables (i) – – 25,804 18,368 1,514 – 27,318 18,368 Funds held in trust – – 1,515 – 6,080 7,584 7,595 7,584 CityLink Concession fee notes receivable (refer note 22 (b)) – – – – – 59,722 – 59,722 Total administered financial assets – – 27,319 18,368 7,594 67,306 34,913 85,674 Total administered assets – – 27,319 18,368 7,594 67,306 34,913 85,674

ad e mINIst red Liabilities Creditors and payables – – 3,715 3,490 5,394 5,385 9,109 8,875 Deferred CityLink redevelopment income (refer note 22 (b)) – – – – 330,589 325,590 330,589 325,590 Total administered liabilities – – 3,715 3,490 335,983 330,975 339,698 334,465 Total administered net assets – – 23,604 14,878 (328,389) (263,669) (304,785) (248,791)

(i) Administered receivables in 2009-10 comprises of $48.647 million (2009: $35.435M) less $21.330 million (2009: $17.067M) provision for doubtful debts.

123 Department of Transport Annual Report 2009-10 Infrastructure Planning, Public Safety and Security Public Transport Services Delivery and Management TOTAL

2010 2009 2010 2009 2010 2009 2010 2009 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Administered income from transactions Vehicle registration fees 853,633 801,860 – – – – 853,633 801,860 Stamp duty on vehicles and transfers 568,885 512,617 – – – – 568,885 512,617 Natural disaster funding – – – – 48,114 17,762 48,114 17,762 Driver licences 34,860 34,090 – – – – 34,860 34,090 CityLink concession deed income (refer note 22(b)) – – – – 27,850 39,142 27,850 39,142 Regulatory fees 22,410 22,098 – – – – 22,410 22,098 Transfer and permit fees 21,928 20,882 – – – – 21,928 20,882 Statutory fines 4 9 15,618 16,463 – – 15,622 16,472 Sale of goods and services 2,678 815 4 11 15 21 2,697 847 Commonwealth grants – 41,664 – – – 340,433 – 382,097 Other income 3,273 681 17,557 16,580 683 518 21,513 17,779 Total administered income from transactions 1,507,671 1,434,716 33,179 33,054 76,662 397,876 1,617,512 1,865,646

Administered expenses from transactions Payments into the Consolidated Fund (1,507,671) (1,434,716) (17,665) (19,272) (62,493) (489,274) (1,587,829) (1,943,262) Natural disaster expenditure – – – – (48,114) (17,762) (48,114) (17,762) CityLink concession deed expense (refer note 22(b)) – – – – (30,776) (30,300) (30,776) (30,300) Other expenses – – (6,788) (17,066) – – (6,788) (17,066) Total administered expenses from transactions (1,507,671) (1,434,716) (24,453) (36,338) (141,383) (537,336) (1,673,507) (2,008,390) Total administered comprehensive result – – 8,726 (3,284) (64,721) (139,460) (55,995) (142,744)

ADMINISTERED Financial ASSETS Cash and receivables (i) – – 25,804 18,368 1,514 – 27,318 18,368 Funds held in trust – – 1,515 – 6,080 7,584 7,595 7,584 CityLink Concession fee notes receivable (refer note 22 (b)) – – – – – 59,722 – 59,722 Total administered financial assets – – 27,319 18,368 7,594 67,306 34,913 85,674 Total administered assets – – 27,319 18,368 7,594 67,306 34,913 85,674 administered Liabilities Creditors and payables – – 3,715 3,490 5,394 5,385 9,109 8,875 Deferred CityLink redevelopment income (refer note 22 (b)) – – – – 330,589 325,590 330,589 325,590 Total administered liabilities – – 3,715 3,490 335,983 330,975 339,698 334,465 Total administered net assets – – 23,604 14,878 (328,389) (263,669) (304,785) (248,791)

(i) Administered receivables in 2009-10 comprises of $48.647 million (2009: $35.435M) less $21.330 million (2009: $17.067M) provision for doubtful debts.

124 Note 22. Administered (non-controlled) items (continued)

(b) CityLink Concession Deed

2010 2009 Summary of CityLink Concession Deed income, expenses, assets and liabilities: $’000 $’000

CITLN Y I K INCOME CityLink concession notes income Concession notes revenue 25,778 24,966 Revaluation increment 2,072 14,176 Total CityLink concession notes income 27,850 39,142 CityLink redevelopment income – – Total CityLink income 27,850 39,142

CITLNE Y I K XPENSE CityLink concession notes revaluation increment (30,776) (30,300) Total CityLink expense (30,776) (30,300) Net income (2,926) 8,842

CITLN Y I K ASSETS Present value of CityLink concession notes receivable (i) – 59,722 Total CityLink assets – 59,722

CITLN Y I K LIABILITIES Present value of deferred CityLink revenue (ii) 330,589 325,590 Total CityLink liabilities 330,589 325,590

2010 2009 R ECONCILIATION OF THE PRESENT VALUE OF CITYLINK RECEIVABLES $’000 $’000 Present value at the beginning of the year 59,722 193,854 Payments received (61,794) (148,307) Revaluation increment 2,072 14,175 Present value at the end of the year – 59,722

2010 2009 R ECONCILIATION OF THE PRESENT VALUE OF DEFERRED CITYLINK REVENUE $’000 $’000 Present value at the beginning of the year 325,590 320,256 Concession notes revenue (25,777) (24,966) Revaluation increment 30,776 30,300 Present value at the end of the year 330,589 325,590

(i) The present value of CityLink receivables is the value of future payments to be received by the Victorian Government in accordance with the M1 Corridor Deed of Assignment (refer following pages). (ii) The present value of deferred CityLink revenue is the value of the concession notes revenue due to be received by the Victorian Government in future periods in accordance with the Melbourne CityLink Concession Deed. (Refer following pages.)

125 Department of Transport Annual Report 2009-10 CityLink Contingent Assets Revenue Sharing from the Revenue Sharing from the Tullamarine/Calder Freeway Monash-CityLink-West Compensable Interchange Upgrade Gate Upgrade Enhancement Claims On 9 June 2005, CML and the On 25 July 2006, CML, Transurban The Melbourne CityLink Concession Victorian Government entered into Infrastructure Management Limited Deed contains compensable the Tullamarine/Calder Freeway (TIML) and the Victorian Government enhancement provisions that enable Redevelopment Deed. Under the entered into the M1 Corridor the Victorian Government to claim terms of this Deed: Redevelopment Deed. Under the 50 per cent of additional revenue terms of this Deed: derived by CityLink Melbourne Limited »» The Victorian Government will (CML) as a result of certain events upgrade the Tullamarine/Calder »» The Victorian Government will that particularly benefit CityLink Freeway Interchange upgrade the Monash and West Gate Freeways including changes to the adjoining »» CML paid $11 million to the road network. Victorian Government as an »» CML will upgrade the Southern upfront revenue sharing Link part of CityLink On 20 May 2005, the Victorian consideration on 1 July 2005 Government lodged a compensable »» The Victorian Government is enhancement claim relating to works »» CML and the Victorian Government entitled to 50 per cent of the to improve the traffic flow on the West agreed on a method of calculating additional CityLink revenue created Gate Freeway between Lorimer and the additional CityLink revenue by the Monash-CityLink-West Montague Streets. The claim remains generated by the upgrade based on Gate Upgrade after CML recovers outstanding at the certification date comparing the actual traffic data its construction and additional of the financial report. against agreed trends. Where this operating costs relating to the calculation method produces an Southern Link works On 29 September 2006, the Victorian amount in excess of the revenue »» The method of calculating the Government lodged a compensable sharing consideration already paid additional CityLink revenue enhancement claim relating to to the Victorian Government, half of generated by the upgrade is to works to improve the traffic flow in the excess amount will be payable be based on comparing the the vicinity of the intersection of to the Government in addition to actual CityLink revenue against the Bulla Road and the Tullamarine the $11 million payment made on agreed trend Freeway. The claim remains 1 July 2005 outstanding at the certification date »» The actual calculation of the »» The actual calculation of the of the financial report. additional CityLink revenue will additional CityLink revenue will take place 3 full financial years take place 30 months after after completion of the upgrade completion of the upgrade

126 Note 22. Administered (non-controlled) items (continued)

CityLink The Concession Deed requires CML The value of concession notes to pay to the Victorian Government due to be received by the Victorian Contingent Liability specified concession fees at specified Government in accordance with the CityLink Melbourne Limited and intervals during the concession Concession Deed, has been disclosed the Victorian Government have period. In accordance with the at the present value of concession approached the Australian Taxation Concession Deed, CML has exercised notes to be issued in future periods Office seeking clarification as to an option to meet its obligations to by CML. The present value of the the applicability of Goods and pay concession fees by way of issuing concession notes has been calculated Services Tax legislation in respect concession notes. These notes are based on an interest rate implied of services and supplies provided non-interest bearing promissory in the estimated concession note under the Melbourne CityLink notes payable by CML at the end of redemption profile included in the Concession Deed. Discussions with the concession period (14 January M1 Corridor Deed of Assignment. the Australian Taxation Office are 2034) or earlier in the event of CML The present value of the concession continuing at the certification date achieving certain financial profitability notes is disclosed as deferred of the financial report. levels and cash flows. CityLink receivables. The Victorian Government, CML The present value of the future Melbourne CityLink and Transurban Infrastructure payments to be received by the The Corporation manages the Management Limited (TIML) entered Victorian Government in accordance statutory functions and powers of into the M1 Corridor Deed of with the M1 Corridor Deed of the Melbourne CityLink Act 1995 on Assignment on 25 July 2006. Under Assignment is disclosed as the behalf of the Victorian Government the terms of the Deed of Assignment, present value of CityLink receivables. all concession notes held by, and in accordance with the Transport The Concession Deed provides for Legislation [Miscellaneous Amendment] due to be issued to the Victorian Government in accordance with the CML to lease certain land and road Act 2004. These functions and infrastructure from the Victorian powers include the administration Concession Deed have been assigned to TIML for a defined payment stream Government during this concession of revenue and assets arising from period. At the end of this period, these the Melbourne CityLink Act 1995. totalling $614.254 million in nominal terms, over a four year period ending assets are to be returned together In accordance with the Melbourne 30 June 2010. with the transfer of the CityLink CityLink Act 1995, the Victorian road network, to the Government. The concession notes and related Government and CityLink Melbourne The accounting treatment to Limited (CML) entered into the revenues are not recognised as the Corporation’s revenue, assets recognise the right of the Victorian Melbourne CityLink Concession Government to receive the CityLink Deed on 30 October 1995. Under the and liabilities. Details of the concession notes and related road network is currently being terms of the Concession Deed, CML considered by the accounting is responsible for the construction, revenues are disclosed in note 24(a) – ‘Administered transactions’. profession and a cross jurisdictional financing and operation of the CityLink government working party. This road network. CML has a right to right has not been recognised as operate the road network for 33.5 an administered asset in the years after completion of construction financial report. (up until 14 January 2034).

127 Department of Transport Annual Report 2009-10 Note 23. Annotated income agreements

The following is a listing of Section 29 annotated income agreements approved by the Treasurer. 2010 2009 Note $’000 $’000

U ser charges, or sales of goods and services Replacement of registration label charge 721 815

C oMMONwealth specific purpose payments Nation building road project grants 564,391 287,854 Nation building rail project grants 30,190 83,219 Interstate road transport registration charges 16,318 11,024 Total annotated income agreements 611,620 382,912

Note 24. Trust account balances

The following is a listing of trust account balances relating to trust accounts controlled and administered by DOT.

2010 2009 Cash and cash equivalents as at 30 June 2010 Note $’000 $’000

CONTL ROL ED TRUSTS Public Transport Fund 280,148 253,491 Better Roads Victoria Trust Account 227,253 120,130 Treasury Trust Fund 20,903 13,675 Total controlled trusts 19(a) 528,304 387,296

AD E MINIST RED TRUSTS Treasury Trust Fund 7,602 7,658 Victorian Natural Disasters Relief Account 247 182 Public Service Commuter Club (254) (256) Total administered trusts 7,595 7,584 Total trust account balances 535,899 394,880

128 Note 25. Responsible persons

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 positions of Ministers and Accountable Officers in DOT are as follows:

Minister for Public Transport The Hon. Lynne Kosky MP 1 July 2009 to 18 January 2010 Acting Minister for Public Transport The Hon. John Lenders MP 19 January 2010 Minister for Public Transport The Hon. Martin Pakula MLC 20 January 2010 to 30 June 2010 Minister for Roads and Ports The Hon. Tim Pallas MP 1 July 2009 to 30 June 2010 Secretary, Department of Transport Mr Jim Betts 1 July 2009 to 30 June 2010

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 26) in connection with the management of DOT during the reporting period was in the range: $390 000 – $399 999 ($370 000 – $379 999 in 2008-09).

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

Other transactions

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.

129 Department of Transport Annual Report 2009-10 Note 26. Remuneration of executives

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

Total Remuneration Base Remuneration 2010 2009 2010 2009 Income Band No. No. No. No. Less than $100,000 25 18 28 20 $100,000–109,999 – 2 – 3 $110,000–119,999 – 1 1 2 $120,000–129,999 3 6 3 4 $130,000–139,999 2 – 2 4 $140,000–149,999 1 4 4 3 $150,000–159,999 5 2 3 1 $160,000–169,999 4 1 4 4 $170,000–179,999 4 4 9 4 $180,000–189,999 8 4 2 4 $190,000–199,999 – 4 5 3 $200,000–209,999 6 3 – 4 $210,000–219,999 3 2 3 6 $220,000–229,999 1 2 6 – $230,000–239,999 3 5 1 – $240,000–249,999 4 3 1 – $250,000–259,999 2 1 1 1 $260,000–269,999 1 – – 1 $280,000–289,999 1 – 1 1 $290,000–299,999 1 2 – – $300,000–309,999 1 – 1 – $320,000–329,999 – 1 – 1 $340,000-349,999 1 – 1 – $440,000-449,999 – 1 – – Total numbers 76 66 76 66 Total amount $11,501,908 $10,290,183 $10,174,761 $9,130,742

130 Note 27. Remuneration of auditors

Audit fees paid or payable to the Victorian Auditor-General’s Office for audit of DOT’s financial statements: 2010 2009 $’000 $’000 Paid as at 30 June 194 120 Payable as at 30 June 81 170 Total remuneration of auditors 275 290

The Victorian Auditor-General’s Office has not provided DOT with any other services.

Note 28. Subsequent events

The subsequent events that occurred after reporting date and before the financial report is authorised for issue, that will come into effect in the 2010-11 financial year is as follows:

The Transport Integration Act came into effect on 1 July 2010 and is now Victoria’s new principal transport statute. The former Transport Act has now been renamed the Transport (Compliance and Miscellaneous) Act 1983. The full details of the new act can be found on DOT’s website however, for the purposes of the financial report it enables the creation of a body corporate to administer the powers provided for in the new act. This change will add the body corporate to the ‘reporting entity’ and will be defined as The Department of Transport plus the Director of Public Transport, the Director, Public Transport Safety and the Chief Investigator, Transport and Marine Safety Investigator. This will be reflected in the 2010-11 financial statements. This change will not impact on results.

Note 29. Glossary of terms

Actuarial gains or losses Comprehensive result on superannuation defined Total comprehensive result is the benefit plans change in equity for the period Actuarial gains or losses reflect other than changes arising from movements in the superannuation transactions with owners. It is the liability resulting from differences aggregate of net result and other between the assumptions used to non-owner changes in equity. calculate the superannuation expense from transactions and Capital asset charge actual experience. The capital asset charge represents the opportunity cost of capital invested Associates in the non-current physical assets Associates are all entities over which used in the provision of outputs. an entity has significant influence but not control, generally accompanying a shareholding and voting rights of between 20 per cent and 50 per cent.

131 Department of Transport Annual Report 2009-10 Note 29. Glossary of terms (continued)

Commitments Financial instrument Financial statements Commitments include those A financial instrument is any contract Depending on the context of the operating, capital and other that gives rise to a financial asset of sentence where the term ‘financial outsourcing commitments arising one entity and a financial liability or statements’ is used, it may include from non-cancellable contractual equity instrument of another entity. only the main financial statements (i.e. or statutory sources. Financial assets or liabilities that are comprehensive operating statement, not contractual (such as statutory balance sheet, cash flow statements, Employee benefits expenses receivables or payables that arise as and statement of changes in equity); Employee benefits expenses include a result of statutory requirements or it may also be used to replace all costs related to employment imposed by governments) are not the old term ‘financial report’ under including wages and salaries, leave financial instruments. the revised AASB 101 (Sept 2007), which means it may include the main entitlements, redundancy payments Financial liability and superannuation contributions. financial statements and the notes. A financial liability is any liability Grants and other transfers Financial asset that is: A financial asset is any asset that is: Transactions in which one unit (a) A contractual or statutory provides goods, services, assets (or (a) cash; obligation: extinguishes a liability) or labour »» to deliver cash or another to another unit without receiving (b) an equity instrument of financial asset to another approximately equal value in return. another entity; entity; or Grants can either be operating or capital in nature. While grants (c) a contractual right or »» to exchange financial assets or to governments may result in the statutory right financial liabilities with another provision of some goods or services »» to receive cash or another entity under conditions that are to the transferor, they do not give financial asset from another potentially unfavourable to the the transferor a claim to receive entity; or entity; or directly benefits of approximately equal value. Receipt and sacrifice (b) A contract that will or may be »» to exchange financial assets of approximately equal value may settled in the entity’s own equity or financial liabilities with occur, but only by coincidence. For instruments and is: another entity under conditions example, governments are not obliged that are potentially favourable »» a non-derivative for which to provide commensurate benefits, to the entity; or the entity is or may be obliged in the form of goods or services, to particular taxpayers in return for (d) a contract that will or may be to deliver a variable number their taxes. For this reason, grants settled in the entity’s own equity of the entity’s own equity are referred to by the AASB as instruments and is: instruments; or involuntary transfers and are »» a non-derivative for which the »» a derivative that will or may termed non-reciprocal transfers. entity is or may be obliged to be settled other than by the receive a variable number of exchange of a fixed amount Grants can be paid as general the entity’s own equity of cash or another financial purpose grants which refer to grants instruments; or asset for a fixed number of the that are not subject to conditions entity’s own equity instruments. regarding their use. Alternatively, »» a derivative that will or may For this purpose the entity’s they may be paid as specific purpose be settled other than by the own equity instruments do not grants which are paid for a particular exchange of a fixed amount of include instruments that are purpose and/or have conditions cash or another financial asset themselves contracts for the attached regarding their use. for a fixed number of the entity’s future receipt or delivery of the own equity instruments. entity’s own equity instruments.

132 Note 29. Glossary of terms (continued)

Grants for on-passing Net result Receivables All grants paid to one institutional Net result is a measure of financial Includes amounts owing from sector (e.g. a State general performance of the operations for government through appropriation government) to be passed on the period. It is the net result of receivable, short and long term to another institutional sector items of income, gains and expenses credit and accounts receivable, (e.g. local government or a private (including losses) recognised for accrued investment income, grants, non-profit institution). the period, excluding those that taxes and interest receivable. are classified as ‘other non owner Intangible assets changes in equity’. Sales of goods and service Intangible assets represent Net result from transactions/ Refers to income from the direct identifiable non-monetary assets net operating balance provision of goods and services and without physical substance. includes fees and charges for services Net result from transactions or rendered, sales of goods and services, Interest expense net operating balance is a key fees from regulatory services, Costs incurred in connection with fiscal aggregate and is revenue work done as an agent for private the borrowing of funds interest from transactions minus expenses enterprises. It also includes rental expenses include interest on bank from transactions. It is a summary income under operating leases and overdrafts and short term and long- measure of the ongoing sustainability on produced assets such as buildings term borrowings, amortisation of of operations. It excludes gains and and entertainment, but excludes discounts or premiums relating to losses resulting from changes in rent income from the use of non- borrowings, interest component of price levels and other changes in the produced assets such as land. User finance leases repayments, and the volume of assets. It is the component charges includes sale of goods and increase in financial liabilities and of the change in net worth that is due services revenue. to transactions and can be attributed non-employee provisions due to the Supplies and services unwinding of discounts to reflect directly to government policies. the passage of time. Non-financial assets Supplies and services generally represent cost of goods sold and the Interest income Non-financial assets are all assets day-to-day running costs, including Interest income includes unwinding that are not ‘financial assets’. maintenance costs, incurred in the normal operations of the Department. over time of discounts on financial Other economic flows assets and interest received on bank Transactions term deposits and other investments. Other economic flows are changes in the volume or value of an asset Transactions are those economic Net acquisition of non-financial or liability that do not result from flows that are considered to arise assets (from transactions) transactions. It includes gains and as a result of policy decisions, usually Purchases (and other acquisitions) losses from disposals, revaluations an interaction between two entities of non financial assets less sales and impairments of non-current by mutual agreement. They also (or disposals) of non financial assets physical and intangible assets; include flows within an entity such less depreciation plus changes in actuarial gains and losses arising as depreciation where the owner is inventories and other movements in from defined benefit superannuation simultaneously acting as the owner non financial assets. Includes only plans; fair value changes of financial of the depreciating asset and as the those increases or decreases in instruments and agricultural assets; consumer of the service provided by non financial assets resulting from and depletion of natural assets the asset. Taxation is regarded as transactions and therefore excludes (non-produced) from their use or mutually agreed interactions between write offs, impairment write downs removal. In simple terms, other the government and taxpayers. and revaluations. economic flows are changes arising Transactions can be in kind (e.g. from market re-measurements. assets provided/given free of charge or for nominal consideration) or Payables where the final consideration is Includes short and long term trade cash. In simple terms, transactions debt and accounts payable, grants, arise from the policy decisions of taxes and interest payable. the government.

133 Department of Transport Annual Report 2009-10 Appendices Contents Metropolitan Patronage Growth...... 135 Whistleblowers Protection Act 2001....187 DOT People Profile...... 136 Freedom of Information Act 1982...... 187 DOT People...... 138 Victorian Industry Participation Policy...188 Statutory Authorities’ National Competition Executive Numbers...... 141 Policy Compliance...... 189 Diversity Reporting...... 142 Secretary’s Attestation of DOT Audit Committee...... 143 Risk Management...... 190 Budget Portfolio Outcomes...... 144 Building Act Compliance...... 190 Output Performance Measures...... 152 Disclosure of Major Contracts Transport Outcome Performance...... 171 Compliance...... 190 Better Roads Victoria Trust Account....177 Consultant Engagements...... 191 Environmental Performance Report....178 Major Publications...... 191 Legislation (administered as at Other available information...... 192 30 June 2010)...... 184 DOT contact information...... 193 Disclosure Index...... 194 Metropolitan Patronage Growth

Metropolitan public transport Whilst the current patronage patronage rose to 497 million trips, an growth rates are lower compared to increase of 1.5 per cent, or 5.4 million previous years, this should be put in trips, compared to 2008-09. the context of the rapid increase in patronage since 2004-05. Patronage Growth in metropolitan train and . on Melbourne’s trains grew by . tram patronage has slowed in the . 47.5 per cent in the four years from . wake of the Global Financial Crisis. 2004-05 to 2008-09. Tram patronage Bus patronage continues to grow grew by 22.6 per cent over the same steadily, driven by the successful four year period. delivery of new SmartBus Routes . like the Red Orbital and improvements From the March quarter 2010, year- in service span and frequency . on-year growth rates are adjusted for delivered by the Metropolitan Bus calendar effects by agreement with Improvement Program. Metlink, the metropolitan train and tram operators, the Bus Association There are some signs of a return of Victoria (BusVic) and V/Line. The to growth in train patronage with calendar effect adjustment results metropolitan train patronage having in a more accurate measure of the increased by 2.7 per cent in the . underlying growth rate by removing 12 months ended June 2010. the effect that differing numbers of school holidays, weekends and public holidays may have upon the apparent growth rate.

Estimated metropolitan patronage and patronage growth from 2008-09 to 2009-10

Estimated patronage Patronage in 2009-10 (millions growth from of boardings) 2008-09 (%) Metropolitan train 219.3 +2.7 Tram 175.6 -1.2 Metropolitan bus 102.1 +3.9 All metropolitan public transport 497.0 +1.5

135 Department of Transport Annual Report 2009-10 DOT People Profile

People profile as at 30 June 2010

Ongoing Fixed term and casual Total Total Number Full-time Part-time FTE* Headcount FTE Headcount FTE* (headcount) June 2010 1,163 1,071 92 1,131 117 110 1,280 1,241 June 2009 1,128 1,048 82 1,102 100 91 1,228 1,193

June 2010 June 2009 Ongoing Fixed term Ongoing Fixed term and casual and casual Number FTE* FTE* Number FTE* FTE* (headcount) (headcount)

Gender Male 605 600 55 595 591 38 Female 558 531 55 533 511 54 Totals 1163 1131 110 1128 1102 91

Age Under 25 38 37 7 37 37 20 25-34 325 319 54 334 329 37 35-44 324 308 25 294 281 16 45-54 282 277 15 269 264 14 55-64 177 174 9 179 176 4 Over 64 17 16 0 15 14 0 Totals 1163 1131 110 1128 1102 91

Classification VPS 1 3 3 0 4 4 0 VPS 2 55 53 10 54 53 28 VPS 3 255 247 18 245 240 18 VPS 4 211 206 36 204 200 22 VPS 5 256 248 17 250 241 10 VPS 6 280 271 19 278 271 12 STS 10 10 0 10 10 0 Executives 54 54 1 50 50 0 Other ** 39 39 9 33 33 2 Totals 1,163 1,131 110 1,128 1,102 91

Note: * FTE Numbers have been rounded to nearest whole number. ** Classification ‘Other’ includes Ministerial drivers and Principal Scientists. The increase in people employed across the financial year is a result of a number of major projects , particularly in continuing the delivery of Regional Rail Link – a major initiative under The Victorian Transport Plan.

136 Number of executive officers classified into ongoing and special projects

All Ongoing Special projects Vacancies Class No Var. No Var. No Var. No Var. Total SEC 1 1 1 EO-1 3 3 3 EO-2 21 21 -2 21 EO-3 30 +5 29 +5 1 2 -3 32 Total 55 +5 54 +5 1 2 -5 57

Breakdown of executive officers into gender for ongoing and special projects

Continuing executives Special projects Male Female Vacancy* Male Female Vacancy Class No Var. No Var. No Var. No Var. No Var. No Var. Total SEC 1 1 EO-1 2 1 3 EO-2 18 3 0 -2 21 EO-3 17 +2 12 +3 2 -3 0 -1 1 +1 32 Total 38 +2 16 +3 2 -5 0 -1 1 +1 0 0 57

* an additional continuing vacancy was temporarily filled by rotation from the Victorian Leadership Development Centre program Var = Variation from previous year

Reconciliation of executives

2010 2009 Executives with total remuneration over $100,000 51 48 Add Vacancies 2 7 Executives employed with total remuneration below $100,000 25 18 Accountable officer 1 1 Inactive 0 0 Additional EO positions 0 0 Less Separations -8 -8 EO to VPS -1 0 Temporary EO’s (higher duties) -11 -5 Secondment out of DOT -2 -1 Machinery of Government changes 0 -3 Total executive numbers at 30 June 2010 57 57

137 Department of Transport Annual Report 2009-10 DOT People

Diversity and inclusion During 2009-10, DOT celebrated a »» The promotion of whole of-. number of diversity and inclusion Victorian Government events . DOT people and leaders place a high events, including: such as Information Privacy Week value on diversity and inclusion. DOT »» International Day of People . in May and Human Rights Week . is committed to creating a diverse with a Disability in December organisation, and age, gender, »» Presentations to two of DOT’s disability and cultural background . »» Cultural Diversity Week Communities of Practice about are not barriers to success. »» International Women’s Day, . what ethical behaviour means . where five DOT women were DOT’s values reflect this stance by in DOT inducted into the inaugural . including ‘Enabling and Inclusiveness’ Institute of Public Administration »» Revision of the DOT Conflict of and ‘Respect, Openness and Courage’. Australia’s International Women’s Interest policy and resources Implementation of the DOT Disability Day Honour Roll. They were . »E» thical behaviour communications Action Plan (DAP) 2009-12 continued Melissa Alessandrini, Felicity activities in DOT’s city and . during 2009-10, including the Hunter, Larissa Scanlan, Lidia regional offices completion of a building access audit Slucki and Fiona Xuereb of DOT premises. DOT continued Occupational health, DOT communications its involvement in the Career Start safety and wellbeing program for graduates with a disability, in alternative formats placing 13 people in the program Our Strategy in 2009-10. To date, 25 people have All DOT communications are available participated in the program, with nine in alternative formats upon request. DOT aims to prevent harm, achieve people securing ongoing or fixed-term the highest standard of occupational employment following their placement. Behaving ethically health, safety and wellbeing, and comply with all the relevant In October 2009, DOT was the national Principles of ethical behaviour Occupational Health and Safety (OH&S) winner of the Diversity@Work Award . are embedded in DOT’s policies, legislation. Additional people have been for Employment and Inclusion of People processes and systems that guide appointed to ensure DOT maintains with a Disability-Large Organisation. the behaviour of DOT people. Actions the highest Occupational Health, Safety taken in 2009-10 to reinforce DOT’s and Wellbeing (OHS&W) standards. The Women Leading Transport value of behaving ethically included: Strategy was launched in March 2010. During 2009-10, the Occupational The strategy focuses on the attraction, »» The work of the Ethical . Health and Safety Strategy 2010-12 was retention and advancement of Behaviour Committee developed, with initiatives including: women in the transport portfolio. The »» Information sessions for people »» Strengthening OHS&W consultation development of the DOT Action Plan who are new to DOT, to establish (local and organisational) and commenced in early 2010. our ethical behaviour expectations Designated Work Groups Development of the DOT Indigenous »T» raining for existing DOT people »» Strengthening safety . Employment Strategy commenced . to reinforce the messages management systems in 2009-10 and will be implemented . about ethical behaviour and the in 2010-12. importance of maintaining public »» Embedding OHS&W into DOT’s . trust. Six customised sessions . risk management framework have been delivered »» Strengthening the focus on »» Rollout of privacy impact psychological health assessment training and resources »» Strengthening OH&S in . DOT contractor procurement . and management »» Strengthening OHS&W measurement and reporting

138 Our management OH&S governance key performance indicators (KPIs) 2009-10 DOT’s OHS&W Committee continued (Claims data sourced from WorkSafe Victoria August 2010) to meet and act as a formal 2007-08 2008-09 2009-10 mechanism for consultation, advice and participative resolution of FTE 1,109 1,193 1,241 department-wide OH&S matters. 1. Incidents and hazards

Workplace inspections continued Number of incidents n/a n/a 30 in consultation and with support Rate of incidents per 100 FTE n/a n/a 2.42 from employee health and safety 2. Standardised claims representatives. Number of standard claims 9 6 11 Our leadership in safety Rate of standard claims per 100 FTE 0.812 0.503 0.886 and wellbeing 3. Lost time standard claims DOT performed contractor audits . Number of lost time claims 3 1 4 and surveillance on all major projects . and continued to review and improve Rate of lost time claims per 100 FTE 0.271 0.084 0.322 safety management systems. 4. No. of claims exceeding 13 weeks Manual handling training and Number of claims exceeding 13 weeks 2 1 2 ergonomic assessments were Rate of claims exceeding 13 weeks . 0.18 0.084 0.161 provided to DOT people as required per 100 FTE to ensure that risks of sprains and 5. Compensated fatalities 0 0 0 strains are eliminated or minimised. 6. Average cost per standardised claim $140,736 $12,507 $60,471 7. Return to work Percentage of claims which have . n/a n/a 100% return to work plans 8. Management commitment »» The Health and Safety Policy . was reviewed and all procedures, »» Evidence of OH&S policy statement; forms and tools are being OH&S objectives; regular reporting . reviewed and updated prior to to senior management of OH&S . developing and implementing and OH&S plans (signed by the . a comprehensive safety CEO or equivalent) management system »» Evidence of OH&S criteria in purchasing guidelines (including »A» Health, Safety and Wellbeing goods, services and people) Action Plan was endorsed by DOT’s Executive Leadership . Team and will be implemented over the next two to three years »» OH&S KPIs are included in . senior management annual performance criteria »» OH&S criteria were key requirements in purchasing and procurement of all goods, services, people and contracts

139 Department of Transport Annual Report 2009-10 OH&S governance key performance indicators (KPIs) 2009-10 (continued) (Claims data sourced from WorkSafe Victoria August 2010)

Wellbeing 9. Consultation »A» review of DWGs in consultation In 2009-10, the DOT Wellbeing with HSRs and DOT People has led »» Evidence of agreed structure of program encouraged DOT people to changes in the DWG framework. Designated Working Groups (DWGs), to maximise their health, wellbeing DWGs are now aligned with Health, and Safety Representatives divisions and working groups to and fitness through activities and (HSRs) and Issue Resolution increase the level of proactivity presentations from key note speakers. Procedures (IRPs) and OH&S conversations Activities included subsidised gym »» Compliance with agreed structure memberships, health checks, »» Additional local OH&S committees DWGs, HSRs and IRPs nutrition information, influenza have been implemented for those DWGs with higher OH&S risks vaccinations, and a range of work life balance and family friendly programs. »» An Occupational Health, Safety and Wellbeing Consultative DOT people also participated in a Committee has been established number of major public events, to provide a strengthened including Ride to Work Day, Mental consultative and strategic approach Health Week, Walktober and World »» Agreed Issue Resolution Health Day. Procedures are in place Reviewing people policies 10. Percentage of Health and Safety »» 100 per cent of HSRs and deputies Representatives with OH&S training are provided with training People and Organisational opportunities participation . »» Acceptance of role Development Division began a review is encouraged of all DOT people-related policies »» Retrain and refresher in late 2009. This review, which 11. Percentage of Staff and Manager »» OH&S induction, both corporate will conclude in the second half of with OH&S Training and role specific, is included for all 2010, aims to ensure that DOT has a new employees and contractors comprehensive, easy to understand »» Induction (policy) and accessible set of people policies. »» Contractors/temps and visitors »» Construction and Train Track Awareness training is a mandatory The new policies comply with requirement for all DOT people legislation, align to DOT’s values, who may be required to visit DOT and emulate best practice people project sites management and VPS requirements. To date, approximately half of DOT’s 12. OH&S Survey Results from the 2010 People people policies have been reviewed Matter Survey show that 92.4 per and published. cent of DOT people agree with the statement, ‘Employees in my organisation are encouraged to report health and safety incidents and injuries’

140 Reviewing personal Learning and development Management development grievances Learning and development is DOT has articulated its key DOT is committed to a workplace . essential to building individual management capabilities in DOT’s where people can be confident that and organisational capability and ‘Thoughtful Management Model’ . their concerns about management performance. DOT’s suite of learning and used this for all targeted decisions, actions or inactions will be and development programs is focused management development. An taken seriously and that every attempt on building DOT’s core capabilities. induction program for all new will be made to address them in a The focus in 2009-10 has shifted managers in DOT has been timely manner. The grievance review from classroom-based training to developed as well as a transition- process provides a single path to approaches such as coaching . to-management program. These address these concerns. and mentoring. strengthen DOT’s management capability and instill consistent DOT rewrote its internal grievance Leadership management practices across . policy in the first half of 2010. The the organisation. new policy provides DOT people with DOT is committed to developing its an accessible and easy to understand leaders in ethical leadership. Managers also benefited from . avenue of redress against treatment the 360 degree feedback tool. Through the piloting of DOT’s 360 they believe is unfair. It has an degree feedback tool, leaders have increased focus on local and informal tailored individual learning plans resolution, where possible, with the to assist with their development lodgement of a formal grievance objectives. being a last resort. Leadership development programs continued to provide leaders with opportunities to network with peers, learn from each other, and be exposed to the strategic thinking . and challenges of senior leaders . in the transport arena.

Statutory Authorities’ Executive Numbers

Organisation Reported Department 2009 2010 Change 2009 2010 2009 2010 F M A V F M A V F M A V Linking Melbourne Authority** Yes Yes DOT DOT 2 5 7 0 2 5 7 1 0 0 0 1 Port of Hastings Corporation Yes Yes DOT DOT 0 1 1 0 0 1 1 0 0 0 0 0 Port of Melbourne Corporation Yes Yes DOT DOT 5 17 22 0 4 24 28 0 -1 7 6 0 Transport Ticketing Authority Yes Yes DOT DOT 4 3 7 0 3 3 6 0 -1 0 -1 0 V/Line Passenger Pty Ltd Yes Yes DOT DOT 7 22 29 0 5 20 25 1 -2 -2 -4 1 VicRoads Yes Yes DOT DOT 14 54 68 4 15 55 70 4 1 1 2 0 Victorian Rail Track Yes Yes DOT DOT 1 7 8 2 2 8 10 1 1 1 2 -1 Corporation Victorian Regional . Yes Yes DOT DOT 0 3 3 0 0 1 1 0 0 -2 -2 0 Channels Authority Totals 33 112 145 6 31 117 148 7 -2 5 3 1

Note: F – Female, M – Male, A – Active, V – Vacant. Southern Cross Station Authority ceased to exist as at 1 July 2009, one executive transferred to DOT. **Formerly Southern and Eastern Integrated Transport Authority.

141 Department of Transport Annual Report 2009-10 Diversity Reporting

In 2002-03 the Victorian Government Train! Tram! Bus! peer Women in Transport Scholarship introduced whole-of-government education program reporting for culturally and linguistically Recipients of the 2008-09 scholarship diverse communities (CALD), women, The Train! Tram! Bus! peer education continued in the two year program. youth and indigenous communities. The program is a collaborative effort The scholarships aim to assist DOT reporting requirements for culturally between Metlink, Western Young women to develop toward senior non-. and linguistically diverse communities People’s Independent Network, traditional jobs in the transport industry. are also included in the Multicultural Spectrum Migrant Resource Centre, Victoria Act 2004. This section meets and service providers. The program is Youth reporting requirements by summarising delivered by peer educators to CALD DOT has a number of programs . achievements in 2009-10. youths who are new to Melbourne. These young people are taught about that focus on and support young people in the transport sector Culturally and linguistically Melbourne’s public transport services to make their transition into the workforce, including: diverse communities community easier. »Y» outh Employment Schemes Information Hub A Train! Tram! Bus! resource kit »» DOT work experience program The Victorian Transport Plan has been developed, and is comprised of several visual aids including flash »» DOT Engineering University Information Hub opened in late 2009 . Vacation Scheme in the heart of Footscray in Melbourne’s cards, maps and games which cover . growing west. The Hub, accessible a range of topics on how to use . »» VPS Graduate Recruitment and by bus, tram and train, provides a public transport. Development Scheme means of engaging directly with Public transport brochures »» DOT/VicRoads Rail engineering CALD communities on The Victorian Graduate Program Transport Plan initiatives in more Metlink published the Fares and than seven languages. The Victorian Travel Guide, a comprehensive public Indigenous communities Transport Plan information is available transport brochure, in 15 languages in printed form and interpreter other than English: Amharic, Arabic, DOT acknowledged indigenous services are also available if required. Burmese, Chin, Chinese, Croatian, contributions to the Victorian Community information sessions Dari, Greek, Italian, Macedonian, community through Sorry Day and conducted in relevant languages can Somali, Spanish, Sudanese, Turkish NAIDOC Week events. be held at the Hub if required. and Vietnamese. Development of the DOT Indigenous Cultural Diversity Week Women Employment Strategy commenced . To celebrate Cultural Diversity . in 2009-10. Women Leading Transport Week, DOT participated in the Victorian Government’s Taste of DOT continued with the Women Harmony initiative. Leading Transport initiative during 2009-10, with a forum being held . on 15 October 2009.

The Women Leading Transport Strategy foreshadowed in 2008-09 . was developed and launched at the event held at 121 Exhibition Street . on International Women’s Day. An action plan arising from the strategy is under development.

142 DOT Audit Committee

The Audit Committee was established Consistent with the department’s to assist the Secretary in governance Audit Charter, the roles and and oversight responsibilities. responsibilities of the Audit Committee include: The Audit Committee provides independent, risk-based and objective »» Oversight of financial performance assurance and recommendations to and reporting the Secretary. »» Oversight of the internal auditor It is supported in this task by a »» Oversight of risk management secretariat, led by the Director Audit processes and Assurance, who reports to the »» Oversight of the compliance and Secretary, and also through an control environment outsourced internal audit provider.

The appointment of an Audit Committee and the maintenance of an internal audit function is a requirement of DOT’s governance arrangements under the Financial Management Act 1994 and the Standing Directions of the Minister . for Finance.

143 Department of Transport Annual Report 2009-10 Budget Portfolio Outcomes

The Budget Portfolio Outcomes The following Budget Portfolio provide comparisons between the Outcomes statements are not actual financial statements of all subject to audit by the Victorian general government sector entities Auditor-General’s Office and are not within the Transport portfolio and prepared on the same basis as the the forecast financial information department’s financial statements as published in the Budget Papers No. 4 they include the consolidated financial Statement of Finances 2009-10 (BP4). information of the following entities: The Budget Portfolio Outcomes »» Department of Transport comprise the comprehensive operating statements, balance sheets, »» VicRoads cash flow statements, statement of »» Linking Melbourne Authority changes in equity and administered item statements.

The Budget Portfolio Outcomes have been prepared on a consolidated basis and include all general government sector entities within the Transport portfolio. Financial transactions and balances are classified into either controlled or administered categories consistent with the published statements in BP4.

144 Comprehensive operating statement for the financial year ended 30 June 2010

2009-10 2009-10 Variation Notes Actual Published Budget ($ million) ($ million) (%)

Nt e rESult from continuing operations Income from transactions Output appropriations 4,461.5 4,460.5 - Special appropriations 1.3 2.0 (35) Interest 4.0 1.2 230 Sales of goods and services 507.5 221.5 129 1 Grants 298.5 244.2 22 2 Fair value of assets and services received free of . 19.9 6.0 232 charge or for nominal consideration Other income 111.9 100.6 11 Total income from transactions 5,404.6 5,036.1 7

Ex pENSES from transactions Employee benefits 376.5 359.3 5 Depreciation and amortisation 435.9 437.9 - Interest expense 32.1 0.0 - 3 Grants and other transfers 1,751.3 1,736.4 1 Capital asset charge 75.7 75.8 - Other operating expenses 2,418.6 2,159.1 12 1 Payments into consolidated fund - - - Total expenses from transactions 5,090.0 4,768.6 7 Net result from transactions (net operating balance) 314.6 267.5 18

145 Department of Transport Annual Report 2009-10 Comprehensive operating statement for the financial year ended 30 June 2010 (continued)

2009-10 2009-10 Variation Notes Actual Published Budget ($ million) ($ million) (%)

O tHER eCONOMIC flows included in net result Net gain / (loss) on non-financial assets (21.1) - - 4 Net gain / (loss) on financial instruments and statutory (0.8) - - receivables / payables Other gains / (losses) from other economic flows (1.4) - - Total other economic flows included in net result (23.3) - - Net result 291.3 267.5 9

O tHER eCONOMIC flows – other non-owner changes in equity Changes in physical asset revaluation reserve 3,764.7 2,338.1 61 5 Other 14,668.5 - - 6 Total other economic flows – 18,433.2 2,338.1 - other non-owner changes in equity Comprehensive result 18,724.5 2,605.6 619

Notes: 1. The variation reflects the revised arrangements for public transport fare revenue under the new Franchise Agreement. From 30 November 2009 all fare revenue is received by the State and then paid to rail operators. Under the previous Franchise Agreement, the rail operators received fare revenue directly. 2. Increased revenue reflects additional funding for natural disaster relief recovery. 3. The 2009-10 actual figure represents the finance lease interest expense for the Southern Cross Station. The Southern Cross Station Authority was abolished on 31 July 2009 and all assets and liabilities were transferred to the department. 4. The 2009-10 actual figure primarily reflects the revaluation of assets transferred from the Southern Cross Station Authority to the department. 5. The variation reflects the impact on the revaluation reserve of the recognition as an asset of VicRoads’ land under roads. 6. The 2009-10 actual figure reflects the recognition as an asset of VicRoads’ land under roads.

146 Balance sheet as at 30 June 2010

2009-10 2009-10 Variation Notes Actual Published Budget ($ million) ($ million) (%)

A sSETS Financial assets Cash and deposits 523.4 372.7 40 Receivables 656.1 569.0 15 Other financial assets 50.0 50.0 - Total financial assets 1,229.5 991.7 24

Non-financial assets Inventories 8.9 12.7 (30) Property, plant and equipment 42,984.1 26,413.8 63 1 Intangible assets 32.7 25.2 29 Other 10.6 9.9 6 Total non-financial assets 43,036.3 26,461.8 63 Total assets 44,265.8 27,453.5 61

L iABILITIES Payables 779.7 578.9 35 Interest bearing liabilities 374.4 3.7 - 2 Provisions 383.7 378.2 1 Total liabilities 1,537.8 960.8 60 Net assets 42,728.1 26,492.7 61

Equt i y Accumulated surplus/(deficit) 15,469.6 777.3 - 1 Reserves 11,431.2 10,004.6 14 3 Contributed capital 15,827.3 15,710.8 1 Total equity 42,728.1 26,492.7 61

Notes: 1. The increase in the value of property, plant and equipment primarily reflects the recognition as an asset of VicRoad’s land under roads and the transfer to the department of the assets and liabilities of the Southern Cross Station Authority following its abolition on 31 July 2009. 2. The 2009-10 result reflects the transfer to the department of the assets and liabilities of the Southern Cross Station Authority following its abolition on 31 July 2009. 3. The variation reflects the impact on the revaluation reserve of the recognition as an asset of VicRoads’ land under roads.

147 Department of Transport Annual Report 2009-10 Cash flow statement for the year ended 30 June 2010

2009-10 2009-10 Variation Notes Actual Published Budget ($ million) ($ million) (%)

C aSH fLOws from operating activities Receipts Receipts from government 4,462.8 4,469.3 - Receipts from other entities 855.4 498.3 71 1 Goods and Services Tax recovered (12.2) -- from the ATO Interest received 4.0 1.2 230 Other receipts 130.8 60.4 118 2 Total receipts 5,440.8 5,029.3 8

Payments Payments of grants and other transfers (1,746.1) (1,736.4) 1 Payments to suppliers and employees (2,651.9) (2,496.6) 6 Goods and Services Tax paid to the ATO 3.5 -- Capital asset charge (75.7) (75.8) - Interest and other costs of finance (32.1) - - 3 Total payments (4,502.4) (4,308.8) 4 Net cash flows from / (used in) 938.4 720.5 30 operating activities

148 Cash flow statement for the year ended 30 June 2010 (continued)

2009-10 2009-10 Variation Notes Actual Published Budget ($ million) ($ million) (%)

C aSH fLOws from investing activities Net investment (105.1) 22.6 – Payments for non-financial assets (1,195.4) (1,395.5) (14) Proceeds from sale of . 18.9 9.0 98 non-financial assets Net cash flows from / (used in) (1,281.5) (1,363.9) (6) investing activities

C aSH fLOws from financing activities Owner contributions by . 413.2 635.1 (34) state government Repayment of finance leases 7.7 – – 3 Net borrowings 64.7 – – 4 Net cash flows from / (used in) 485.6 635.1 (23) financing activities Net increase (decrease) 142.5 (8.2) in cash and cash equivalents Cash and cash equivalents at the 380.9 380.9 beginning of the financial year Cash and cash equivalents at the 523.4 372.7 end of the financial year

Notes: 1. The variation reflects the revised arrangements for public transport fare revenue under the new Franchise Agreement. From 30 November 2009 all fare revenue is received by the State and then paid to rail operators. Under the previous Franchise Agreement, the rail operators received fare revenue directly. 2. Variation includes final payments from former rail operators. 3. The 2009-10 actual relates to the finance lease for the Southern Cross Station. The Southern Cross Station Authority was abolished on 31 July 2009 and all assets and liabilities were transferred to the department. 4. Reflects balances payable to rail operators under the new Franchise Agreement.

149 Department of Transport Annual Report 2009-10 Statement of changes in equity as at 30 June 2010

Accumulated Contributions Other Asset Total Notes Surplus / by Owner Reserves Revaluation Equity (Deficit) Reserve ($ million) ($ million) ($ million) ($ million) ($ million)

AtlRc ua esult Closing balance 30 June 2009 (Actual) 509.7 15,075.7 – 7,666.6 23,251.9 Comprehensive result 291.4 – – 14,668.5 14,959.9 1 Transactions with owners in their – 751.6 – 3,765.7 4,516.3 capacity as owners Closing balance 30 June 2010 (Actual) 801.1 15,827.3 - 26,099.8 42,728.1

ButR dge esult Closing balance 30 June 2009 (Actual) 509.7 15,075.7 – 7,666.6 23,251.9 Comprehensive result 267.5 – – – 267.5 Transactions with owners in their – 635.1 – 2,338.1 2,973.2 capacity as owners Closing balance 30 June 2009 (Budget) 777.2 15,710.8 – 10,004.7 26,492.6

Notes: 1. The 2009-10 asset revaluation result reflects the recognition as an asset of VicRoads’ land under roads.

150 Administered items statement as at 30 June 2010

2009-10 2009-10 Variation Notes Actual Published Budget ($ million) ($ million) (%)

A dMINISTERED income Sales of goods and services 2.7 0.8 221 Grants 48.1 - - 1 Other income 1,566.7 1,598.8 (2) Total administered income 1,617.5 1,599.6 (2)

A dMINISTERED expenses Expensesn o behalf of the State 30.8 30.8 - Grants and other transfers 48.1 - - 1 Payments into the Consolidated Fund 1,587.8 1,631.9 (3) Total administered expenses 1,666.7 1,662.6 – Income less expenses (49.2) (63.0) (22) Other economic flows included in net result Net gain/(loss) on . (6.8) - - non-financial assets Total other economic flows (6.8) - - included in net result Net result (56.0) (63.0) (11) Other economic flows – other non-owner changes in equity Other (305.5) (305.5) - Comprehensive result (361.5) (368.5) (2) Administered assets Cash and deposits 10.3 7.6 36 Receivables 24.4 20.0 22 Total administered assets 34.6 27.6 25 Payables 339.4 339.5 - Total administered liabilities 339.4 339.5 - Net assets (304.8) (311.8) (2)

Equt i y Contributed capital 56.7 56.7 - Accumulated surplus/(deficit) (361.5) (368.6) (2) Total equity (304.8) (311.8) (2)

Notes: 1. Reflects funding for natural disaster relief recovery.

151 Department of Transport Annual Report 2009-10 Output Performance Measures

The following section provides details of the outputs provided to government during 2009-10, including performance measures and costs for each output.

Output costs for 2009-10 have been prepared on an Australian equivalents to International Financial Reporting Standards basis.

Notes are provided to explain elements of measurements and major variations . in performance against 2009-10 targets. Public safety and security

These outputs contribute to the achievement of the key government outcome . of building friendly, confident and safe communities.

This is done by delivering initiatives and regulatory activities that improve safety . in the public transport, road, and marine sectors and reduce the frequency, severity and cost of accidents and incidents. It also covers activities aimed at maintaining the security of critical infrastructure and the preparedness to respond to emergencies involving this infrastructure.

Reducing the State’s road toll is a high priority for the government. A key measure of success will be the reduction of serious injuries and deaths related to road crashes. Key departmental activities to achieve this outcome include implementing arrive alive 2008-2017 road safety initiatives to change road user behaviour, and improving the safety of road infrastructure through initiatives . such as the Safer Road Infrastructure Program.

Strong regulatory frameworks and programs are in place to improve safety on public transport, and on the State’s waterways relating to both commercial and private recreational vessels. The Chief Investigator, Transport and Marine Safety Investigations, conducts independent investigations into public transport and marine safety incidents with the objective of improving the overall safety of . the system.

152 Public transport safety and regulation Work with industry stakeholders to achieve the highest standards of safety practicable for train, tram and bus services in Victoria and implement initiatives to achieve the government’s public transport safety objectives. Monitor compliance with public transport safety management systems through rigorous audits and inspections, investigate accidents and incidents, and implement corrective actions.

Unit of 2009-10 2009-10 Measure Target Actual

QU ANTITY Active advance warning signs (1) number 29 28 Annual bus safety mechanical inspections number 50 61 Bus safety accreditation compliance audits/ inspections conducted in accordance with per cent 100 100 regulatory policy Public railway crossings upgraded number 37 44 (2) Train and tram safety compliance audits/ inspections conducted in accordance with number 50 74 legislative requirements

Q uaLITy Bus safety non-compliance reports addressed per cent 100 61 (3) within agreed timeframes by accredited operators Train and tram safety improvement notices addressed within agreed timeframes by per cent 100 100 accredited operators

TIMELINESS Bus safety accreditations processed on time per cent 100 94 Train and tram accreditations processed on time per cent 100 97

C oST Total output cost $ million 26.0 28.1

1. Installation of active advance warning signs at railway crossings. At some locations, this program is being done in conjunction with upgrades to railway crossings. 2. The 2009-10 result reflects an acceleration of the level crossing program. 3. The Bus Safety Act 2009 (Vic) (BSA) will provide Transport Safety Victoria with strengthened compliance and enforcement tools in relation to monitoring bus safety. The BSA comes into full operation from . 31 December 2010.

153 Department of Transport Annual Report 2009-10 Road safety and regulation Provide a road safety program that incorporates the Safe System approach. This approach is based on the key components of safer vehicles, safer road infrastructure and safer speeds. Essential supporting elements of the Safe System include controlling admittance to the system, understanding crashes and risk, education and information to support road users, and legislation and enforcement of road rules.

Unit of 2009-10 2009-10 Measure Target Actual

QU ANTITY Road safety projects/initiatives completed »» safe roads number 356 278 (4) »»e saf road users number 33 21 (4) »»e saf vehicles number 6 10 (5)

Q uaLITy Projects completed within agreed scope . per cent 100 100 and standards

TIMELINESS Programmed works completed within . per cent 100 78 agreed timeframes

C oST Total output cost $ million 177.7 158.0 (6)

4. The 2009-10 result reflects the rescheduling of the completion of some projects to 2010-11. 5. The 2009-10 result is higher than target due to the inclusion of rest areas and national reform projects. 6. The 2009-10 result reflects the reclassification of activities between operating and capital and the rescheduling of the completion of some projects to 2010-11.

154 Vehicle and driver regulation Provide a vehicle registration and driver licensing service that contributes to the integrity of the road user environment by ensuring the registration of trained drivers and roadworthy vehicles, and the ability to easily trace missing vehicles. Administer, regulate and monitor taxis, hire cars, special purpose vehicles, tow trucks and the driving instructor industry.

Unit of 2009-10 2009-10 Measure Target Actual

QU ANTITY Commercial passenger vehicles inspected – number 14,000 18,270 (7) taxis, hire cars etc Driver licences renewed number (`000) 387 389 New driver licences issued number (`000) 144 162 (8) New vehicle registrations issued number (`000) 496 510 Vehicle and driver information requests processed number (`000) 3,400 4,714 (9) Vehicle registrations renewed number (`000) 4,607 4,680 Vehicle registration transfers number (`000) 830 812

Q uaLITy Currency of registration and licensing records per cent >99 99 Customer satisfaction index: taxi services score 64 56.4 (10) Taxis conform to quality standards per cent >80 77 Taxi service complaints investigated and closed number 2,800 3,518 (11) User satisfaction with registration and licensing per cent >85 91 (12)

TIMELINESS Calls answered within 30 seconds in VicRoads per cent 80 65 (13) call centres Customers served within 10 minutes in per cent 80 68 (14) VicRoads licensing and registration offices Taxi service complaints investigated and closed per cent >60 73.4 within 30 days of receipt

C oST Total output cost $ million 162.2 169.7

7. The 2009-10 result reflects the completion of the taxi audit and plate exchange project and increased capacity within the Victorian Taxi Directorate (VTD) to undertake vehicle inspections. 8. Increase in volume due to an improvement in customer drive test pass rates following the launch of the Graduated Licensing System, and additional capacity to deliver more drive tests. 9. There has been a large increase in registration search requests by ConnectEast, resulting from increased usage of EastLink. 10. The lower result is attributed to unforeseen booking and payments systems related problems in 2009-10. 11. The 2009-10 result is higher than target due to a public media campaign promoting the taxi complaints process to community groups. The level of complaints is expected to return to normal levels in 2010-11. 12. The 2009-10 result higher than target due to continuous improvement in customer service. Revised customer surveys are being developed to support this continuous improvement. 13. The 2009-10 result reflects high customer call demand due to Road Safety Regulation changes and other initiatives as well as increased general enquiries. Improvements in VicRoads’ Call Centre operations were introduced during 2009-10 which resulted in improved performance in the latter part of the year. Performance improvements are expected to continue into 2010-11. 14. The 2009-10 result reflects the growth in licensing and registration transactions and drive tests placing considerable pressure on Service Centres’ service levels. This is expected to improve in 2010-11 with the implementation of an automated Queue Management System. 155 Department of Transport Annual Report 2009-10 Marine safety and regulation Develop and administer the policy and 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.

Unit of 2009-10 2009-10 Measure Target Actual

QU ANTITY All relevant registered training organisations per cent 100 92 and training providers audited (15) Commercial vessels surveyed annually per cent 100 100 Safety audits performed on: »» commercial vessels per cent 15 15 »» recreational vessels number 4,500 5,648 (16)

Q uaLITy Designated waterways audited to assess per cent 15 15 adequacy of vessel operating and zoning rules Recreational vessel and operator compliance with both registration and licensing per cent 85 96 (16) requirements Recreational vessel compliance with safety per cent 85 97 (16) equipment and operational behaviour

C oST Total output cost $ million 16.3 16.4

15. The audit is undertaken every two years. 16. The 2009-10 result is based on data from the Victorian Water Police.

156 Transport and marine safety investigations Conduct independent no-blame safety investigations of public transport and marine accidents and incidents to determine causal factors and identify issues that may require review, monitoring or consideration by stakeholders.

Unit of 2009-10 2009-10 Measure Target Actual

QU ANTITY Proportion of accidents/incidents . involving identified multiple safety system per cent 90 100 (17) failures investigated

Proportion of notified accidents with . passenger fatalities and serious passenger per cent 100 100 injuries investigated

TIMELINESS Accidents/incidents assessed within two . days of notification to determine need for per cent 100 100 detailed investigation Completion of investigations measured . index 1 0.93 (18) against benchmark timeframes

C oST Total output cost $ million 2.6 1.6 (19)

17. In 2009-10, 100 per cent of multiple safety system failures were investigated due to the fact that they differed in nature. Where a number of accidents have the same multiple safety system failures, a proportion of those accidents are investigated. 18. The 2009-10 result reflects the need for extensive technical research and input into three investigations. 19. The 2009-10 result includes the reallocation of some activities to the ‘Marine Safety and Regulation’ output.

157 Department of Transport Annual Report 2009-10 Infrastructure security and emergency management Ensure there is adequate management of security risks and emergencies within the transport sector, including public transport, the road and rail system, ports and marine environments, and to assist the Department of Primary Industries within the energy sector. Provide strategic advice to government and coordinate across these sectors to achieve sufficient capacity and preparedness to respond in emergency situations.

Unit of 2009-10 2009-10 Measure Target Actual

QU ANTITY Contribution to multi-agency exercise management and coordinate DOT portfolio number 3 3 involvement

Leadership of, or contribution to, strategic security and emergency management number 32 81 (20) coordination sessions and workshops

Major infrastructure security and emergency management exercises coordinated by DOT number 2 1 (21) consistent with the required standards

Minor infrastructure security and emergency management exercises coordinated by DOT number 3 9 (22) consistent with the required standards

Q uaLITy Reported marine pollution incidents responded to and resolved in accordance with the Victorian per cent 100 100 State Marine Pollution Response Plan Review of risk management plans of declared per cent 85 85 essential services for terrorism cumulative Supervision of exercises to test declared essential services risk management plans. per cent 100 100 for terrorism

TIMELINESS Initiation of agreed recommendations in response to infrastructure security and/or per cent 100 100 emergency management reviews Marine pollution response action initiated per cent 100 100 within four hours of notification of an incident Provide advice to the portfolio Ministers on per cent 100 100 policy issues within required timeframes

C oST Total output cost $ million 3.8 3.7

20. The 2009-10 result is higher than target due to an increase in State level emergency planning and coordination meetings including bushfire preparedness. 21. Exercise management resources were redirected to assist Victoria Police with planning and executing the National Counter Terrorism Committee (NCTC) exercise, Mercury 2010. These resources would normally be for planning a second major DOT led exercise. 22. The 2009-10 result is higher than target due to increased regional exercises with the Department of Education and Early Childhood Development (DEECD) to support bushfire preparedness.

158 Public transport services

These outputs contribute to the achievement of the following key government outcomes: »» Growing and linking all of Victoria »» Protecting the environment for future generations »» Sound financial management

This is done by overseeing the delivery of quality, sustainable and cost effective passenger train, tram and bus services to metropolitan Melbourne and rural and regional Victoria, in partnership with operators and in accordance with contractual arrangements.

These outputs aim to continue the improvement in the delivery of, and access to, public transport services and to increase the overall mobility of Victorians. The outputs help to protect the environment by increasing public transport patronage, thereby reducing the reliance on private motor vehicles. Contracts with operators are managed to ensure that the services provided meet contractually agreed standards and that the committed investment levels for rolling stock and buses are delivered.

These outputs also include the provision of school bus services and managing the Multi Purpose Taxi Program, which provides subsidised taxi services for people unable to use other forms of public transport.

The 2009-10 targets for the Integrated Metropolitan Public Transport Services performance measures were based on the metropolitan train and tram operator franchise agreements that concluded on 29 November 2009.

159 Department of Transport Annual Report 2009-10 Integrated metropolitan public transport services Work in partnership with private operators to deliver safe, reliable and accessible metropolitan train, tram and bus services in accordance with contractual arrangements.

Unit of 2009-10 2009-10 Measure Target Actual

QU ANTITY Passengers carried »» bus number (million) 104.8 102.1 (23) »» train number (million) 237.4 219.3 (23) »» tram number (million) 181.7 175.6 (23) Payments made for »» bus services $ million 486 461 »» train services $ million 433 691 (24) »» tram services $ million 134 263 (24) Scheduled services delivered »» bus per cent 99.8 >99.9 »» train per cent 99.2 99.2 (25) »» tram per cent 99.7 99.8 (26) Total kilometres scheduled »» bus km (million) 104.6 101.3 »» train km (million) 18.8 18.9 »» tram km (million) 23.4 23.3

Q uaLITy Customer satisfaction index »» bus services score 70 69.0 »» train services score 62 59.6 »» tram services score 70 69.4 Rolling stock annual plan meets specifications in the partnership agreements »» train per cent 100 100 »» tram per cent 100 100

160 Unit of 2009-10 2009-10 Measure Target Actual

TIMELINESS Bus services within five minutes . per cent 95 94.1 of timetable Nominated franchisee capital projects are delivered within scheduled or subsequent quarter »» train per cent 85 100 »» tram per cent 85 100 Train services arriving at destination no more than 59 seconds before and per cent 94 91.8 (27) less than 5 minutes 59 seconds . after timetable Tram services departing the 2nd, 3rd and 4th monitoring points (average) no more than 59 seconds before and per cent 82.5 85.4 (28) less than 5 minutes 59 seconds . after timetable

C oST Total output cost $ million 2,074.5 2,419.0 (29)

23. The 2009-10 result is lower due to patronage growth being less than estimated. 24. Increased payments in 2009-10 and 2010-11 reflect the additional investment in public transport under . the new Franchise Agreement. In addition from 30 November 2009, all fare revenue is received by the State and paid to rail operators. Under the previous Franchise Agreement, the rail operators received fare . revenue directly. 25. Actual reported results are for the period from 1 July to 29 November 2009. From 30 November 2009 new rail franchise agreements took effect with a new reliability measure introduced accounting for service cancellations, short services and bypass events. From 30 November 2009 the train operator has averaged 98.8 per cent per month against a target of 98 per cent. Service delivery results before and after 30 November 2009 are not directly comparable. 26. Actual reported results are for the period from 1 July to 29 November 2009. From 30 November 2009 new rail franchise agreements took effect with a new reliability measure introduced. From 30 November 2009 the tram operator has averaged 99.2 per cent per month against a target of 98 per cent. Service delivery results before and after 30 November 2009 are not directly comparable. 27. Actual reported results are for the period from 1 July to 29 November 2009. From 30 November 2009 . new rail franchise agreements took effect with a new punctuality measure introduced. This is now measured as services arriving no more than 59 seconds before and no later than four minutes and 59 seconds after the scheduled timetable. From 30 November 2009 the train operator has averaged 84 per cent per month against a target of 88 per cent. Punctuality measures before and after 30 November 2009 are not directly comparable. 28. Actual reported results are for the period from 1 July to 29 November 2009. From 30 November 2009 . new rail franchise agreements took effect with a new punctuality measure introduced. This is now measured as services arriving no more than 59 seconds before and no later than four minutes and . 59 seconds after the scheduled timetable. From 30 November 2009 the tram operator has averaged . 81.6 per cent per month against a target of 77 per cent. Punctuality measures before and after 30 . November 2009 are not directly comparable. 29. Increased costs in 2009-10 reflect the additional investment in public transport. In addition under the . new Franchise Agreement, from 30 November 2009 all fare revenue is received by the State and paid to . rail operators.

161 Department of Transport Annual Report 2009-10 Rural and regional public transport services Work in partnership with V/Line and private operators to deliver safe, reliable and accessible train, coach and bus services in and to regional and rural Victoria, in accordance with contractual arrangements.

Unit of 2009-10 2009-10 Measure Target Actual

QU ANTITY Passengers carried »» country bus services number (million) 14.0 13.5 (30) »» V/Line train and coach services number (million) 14.4 13.7 (30) Payments made for »» country bus services $ million 97 97 »» V/Line train services $ million 289 300 Scheduled services delivered »» country bus per cent 99 99 »» V/Line train per cent 99 98.5 Total kilometres scheduled »» country bus number (million) 18.4 18.8 »» V/Line train and coach km (million) 21.3 21.2

Q uaLITy Customer satisfaction index »» V/Line coach services score 80 75.4 (31) »» V/Line train services score 77 74.5 Rolling stock annual plan meets specifications in the Rolling Stock per cent 100 100 Management Plan for V/Line trains

TIMELINESS Country bus services within five minutes . per cent 99 98.5 of timetable

Rail services arriving at destination no more than 5 minutes 59 seconds after timetable for short distance services . per cent 92 85.2 (32) and 10 minutes 59 seconds for long distance services

C oST Total output cost $ million 693.0 691.0

30. The 2009-10 result is lower than target due to patronage growth being less than estimated. 31. The lower result is attributed to the use of rail replacement coaches on some V/Line train lines in 2009. 32. The 2009-10 result is lower than target due to a combination of extreme weather, heat related speed restrictions, infrastructure and train faults and congestion on the metropolitan network.

162 Specialist transport services Manage contractual arrangements for the provision of school bus services in accordance with contract service standards. Manage the Multi Purpose Taxi Program, which provides subsidised taxi services for those unable to use other forms of public transport, and provide access for people with a disability to transport facilities by meeting obligations under the Disability Discrimination Act 1992 (Commonwealth).

Unit of 2009-10 2009-10 Measure Target Actual

QU ANTITY Disability Discrimination Act (DDA) compliance for public transport infrastructure

»» level access tram stops built number 26 6 (33) »» number of accessible bus stops built number 1,500 1,506 »» upgrades to various access features . per cent 6 6 at metropolitan stations »» upgrades to various access features . per cent 6 6 at regional stations Multi Purpose Taxi Program taxi trips »» passenger only number (`000) 3,786 3,631 »» with wheelchair number (`000) 660 692 Scheduled school bus services delivered per cent 99 98.8 Total kilometres scheduled: school bus km (million) 33 33.5 Transport access site treatments completed number 58 45 (35) by VicRoads (34)

Q uaLITy Transport treatments completed within per cent 100 78 (35) agreed scope or standards

TIMELINESS Multi Purpose Taxi Program applications assessed and completed within . per cent 90 88.0 10 working days Programmed transport access works per cent 100 100 completed within agreed timeframes School bus services within five minutes . per cent 99 98.7 of timetable

C oST Total output cost $ million 247.7 240.7

33. The 2009-10 result reflects the rescheduling of projects into 2010-11 following a design . compliance assessment. 34. Treatments ensure that Disability Discrimination Act compliance is met. 35. The 2009-10 actual is lower than target due to the ongoing impact of the increased complexity . and costs associated with site treatments.

163 Department of Transport Annual Report 2009-10 Infrastructure transport planning, delivery and management

These outputs make a significant contribution to the achievement of the following key government outcomes: »» Growing and linking all of Victoria »» Sound financial management »» More quality jobs and thriving, innovative industries across Victoria »» Efficient use of natural resources »» Greater public participation and more accountable government

These outputs do this by providing the Government with strategic policy and development guidance in relation to integrated transport and land-use planning, development of sustainable transport solutions, implementing targeted industry and community programs and delivering cost effective long term investment and management of transport infrastructure. Implementation of The Victorian Transport Plan is reflected in many of the projects and milestones reported in these outputs.

The Government is committed to building better, more accessible and environmentally sustainable transport links for the State. This includes improving the integration of transport and land use planning, promoting sustainable travel choices, strengthening transport networks that will support concentration of jobs and services close to where people live, increasing the use of public transport and strengthening the connections between our ports, industry and agricultural centres. These outputs deliver a combination of strategic road and rail infrastructure improvements to manage congestion and improve the movement of people and goods throughout Victoria.

164 Integrated and sustainable transport development Contribute to the development of a sustainable transport system for regional, rural and metropolitan Victoria by working collaboratively across government and within the community on integrated transport and land use planning, transport planning frameworks, transport infrastructure priorities and implementation processes. Implement programs to support more sustainable forms of transport, improve the environmental efficiency of transport activity and the transport fleet, influence travel behaviour and manage travel demands.

Unit of 2009-10 2009-10 Measure Target Actual

QU ANTITY Carpooling program participants (36) number 26 10 (37) Cycling projects completed number 17 17 Local Area Access Program grant funding committed within agreed timelines per cent 100 100 Low Emission Vehicles program: commercial fleets engaged number 60 0 (38) New TravelSmart programs implemented at workplaces, schools, tertiary education number 35 45 campuses and other organisations Pedestrian projects completed number 16 17 Planning and coordination of transport infrastructure projects in Central Activity Districts number 6 6

Q uaLITy Carpooling program progressed within agreed scope or standards per cent 100 100 Local Area Access Program assessments, monitoring reports and payments per cent 100 100 undertaken according to grant agreements New travel plans developed by schools, workplaces and other organisations per cent 60 60 participating in TravelSmart programs TravelSmart program delivered to participating tertiary campuses per cent 100 100

TIMELINESS Local Area Access Program activities completed within agreed timelines per cent 100 100 Low Emission Vehicles Program: Establish average government fleet CO2 emissions date qtr 4 na (39) intensity target Policy advice including COAG National Reform Agenda provided to agreed timelines per cent 100 100 Projects in Central Activities Districts progressed to agreed plans and timeframes per cent 100 100 Public Bicycle Hire Scheme: contract award date qtr 3 qtr 2 Strategic integrated transport input into the development of new growth areas is per cent 100 100 provided within agreed timelines TravelSmart activities completed within agreed timelines per cent 100 100

C oST Total output cost $ million 50.1 54.2

36. Carpooling program participants include employers, schools and tertiary institutions at individual sites. 37. The 2009-10 result is lower than target due to the rescheduling of some project start up activities. 38. The 2009-10 result is due to unexpected delays in being granted access to the commercial fleet program framework and tools. This access is expected to be made available in the first half of 2010-11. 39. The Victorian Government fleet emission intensity target was announced in July 2010 in the Taking Action for Victoria’s Future statement.

165 Department of Transport Annual Report 2009-10 Public transport infrastructure development Ensure delivery of the Government’s commitment to metropolitan, regional and rural public transport infrastructure development and monitor the quality of rail infrastructure as set out in the contracts with the private operators.

Unit of 2009-10 2009-10 Measure Target Actual

QU ANTITY Dandenong Rail Corridor – Westall Station & Stabling Upgrade per cent 50 49 Laverton Rail Upgrade per cent 60 73 Projects continuing: country rail services: Mildura number 1 1 Wodonga Rail Bypass per cent 70 78

Q uaLITy Projects progressed to agreed plans and timeframes per cent 100 63 (40)

TIMELINESS Craigieburn Crossovers and Signalling »» detailed design completed date qtr 1 qtr 3 (41) »»y earl works for construction date qtr 2 qtr 1 Dandenong Rail Corridor Stage 2 – Westall Rail Upgrade »» complete design date qtr 2 qtr 2 »» commence construction – station date qtr 2 qtr 2 »» commence construction – stabling date qtr 3 qtr 3 Development of new integrated public transport ticketing solution »» start metropolitan live operations date qtr 2 qtr 2 »» start regional and coach live operations date qtr 4 na (42) Doncaster Area Rapid Transit (DART) »» design development completed for bus stop upgrades date qtr 2 qtr 2 »» design development completed for bus priority treatments date qtr 3 qtr 3 »» construction works commence for bus stop upgrade works date qtr 4 qtr 3 Growth Area Stations Program »» complete preliminary design program date qtr 3 qtr 3 »» request for tenders issued date qtr 4 qtr 4 Metrol Replacement: Delivery of simulator (traffic and interlocking simulator date qtr 2 qtr 1 available for application data checking) Metropolitan Train Communications System replacement »» trial system acceptance date qtr 2 qtr 3 (43) »» system infrastructure installed per cent 50 50 North Melbourne Station Interchange Upgrade: complete work on new station building date qtr 4 qtr 2

166 Unit of 2009-10 2009-10 Measure Target Actual Planned infrastructure asset renewal/maintenance activities are delivered within project timeliness »» country passenger rail network per cent cumulative 90 83 (44) »» metropolitan train network per cent cumulative 90 96 »» tram network per cent cumulative 90 90 SmartBus: Green Orbital Stage 2 – Nunawading to Airport West »» construction works completed for bus stop upgrades works date qtr 3 qtr 4 »» services commence date qtr 4 qtr 4 »» construction works completed for on-bus road priority treatments date qtr 4 na (45) SmartBus: Yellow Orbital Stage 2 – Ringwood to Melbourne Airport »» design development completed for bus stop upgrades date qtr 2 qtr 2 »» design development completed for bus priority treatments date qtr 3 qtr 3 »» construction works commence for bus stop upgrade work date qtr 4 qtr 3 South Morang Rail Extension »» tenders sought for work packages date qtr 2 qtr 2 »» award contract for work packages date qtr 4 qtr 4 Sunbury Electrification »» tenders sought for works packages date qtr 2 qtr 1 »» award Contract for work packages date qtr 4 qtr 4 Train Supervisory Control and Data Acquisition (SCADA) Replacement: . date qtr 4 na (46) complete procurement phase and award contract Tram Automatic Vehicle Monitoring (AVM) System Replacement: . date qtr 4 na (47) complete procurement phase and award contract Vigilance Control and Event Recording System (VICERS) »» commence installation on Siemens date qtr 3 na (48) »» commence installation on Xtrapolis fleet date qtr 1 na (48)

C oST Total output cost $ million 188.6 135.9 (49)

40. The 2009-10 result reflects the rescheduling of activities for projects detailed in this ouput. 41. The 2009-10 result is later than target due to a design change to improve the signalling headway. 42. The commencement of regional and coach operations is expected by the end of 2010. 43. The 2009-10 result is later than target due to delays from the supplier submitting design documentation. 44. The 2009-10 result is lower than target due to issues with the supply of materials. 45. Construction works are now scheduled for completion in 2010-11. 46. The procurement phase was completed in 2009-10 with the contract award expected in early 2010-11. 47. Contract award expected in early 2010-11. 48. Commencement of VICERS installation on the X’Trapolis and Siemens fleet has been delayed due to testing issues. 49. The reduction in costs in 2009-10 primarily reflects the rescheduling of myki.

167 Department of Transport Annual Report 2009-10 Road network improvements Enhance the performance of Victoria’s road network to improve access and efficiency by developing road transport links, lowering transport operating costs and upgrading the quality of roads with respect to safety, and deliver cost effective projects to reduce congestion and improve reliability and travel times for all road users including public transport and the movement of freight.

Unit of 2009-10 2009-10 Measure Target Actual

QU ANTITY Bridge strengthening and replacement projects completed »» metropolitan number 1 2 »» regional number 12 11 Bus/tram route and other high occupancy number 23 25 vehicle improvements Congestion projects completed number 12 19 (50) Local road projects completed: regional number 10 15 (50) Major road improvement projects completed »» metropolitan number 2 2 »» regional number 0 0 Other road improvement projects completed »» metropolitan number 6 6 »» regional number 5 3 (51)

Q uaLITy Road projects completed within agreed scope and standards »» metropolitan per cent 98 99 »» regional per cent 98 100

TIMELINESS Peninsula Link »» Expressions of Interest shortlisted date qtr 1 qtr 1 »» contract close date qtr 3 qtr 3 Peninsula Link: major design and construction per cent 100 100 milestones reviewed and reported

Programmed works completed within agreed timeframes

»» metropolitan per cent 95 100 »» regional per cent 95 100

C oST Total output cost $ million 682.1 721.3

50. Additional projects which were not originally targeted to be completed in 2009-10. 51. Two projects will be completed in 2010-11.

168 Road asset management Maintain assets that meet the safety, mobility and access needs of the community.

Unit of 2009-10 2009-10 Measure Target Actual

QU ANTITY Bridges maintained »» metropolitan number 885 902 »» regional number 2,205 2,238 Pavement resurfaced »» metropolitan m2 (‘000) 1,934 1,945 »» regional m2 (‘000) 9,223 9,007 Road network maintained »» metropolitan lane-km 11,391 11,391 »» regional lane-km 41,480 41,480

Q uaLITy Bridges that are acceptable for legal load vehicles »» metropolitan per cent 99.4 99.6 »» regional per cent 99.6 99.5 Proportion of travel on smooth roads »» metropolitan per cent 90 91 »» regional per cent 92 93 Structures with Level 4 defects (52) »» metropolitan per cent 1.2 1.2 »» regional per cent 3.2 3.2

TIMELINESS Annual maintenance program completed within agreed timeframes »» metropolitan per cent 100 100 »» regional per cent 100 100

C oST Total output cost $ million 382.0 380.4

52. Structures with Level 4 defect are ones in poor condition. Structure components are showing advanced deterioration, are acting differently to their intended purpose or are showing signs of overstress. Load limits may be applied to ensure safe operation of these bridges.

169 Department of Transport Annual Report 2009-10 Freight, logistics, ports and marine development Plan and deliver policy and infrastructure initiatives to improve efficiency and safety in the freight and logistics sector and the State’s ports and marine environment, while reducing environmental and social impacts caused by the movement of freight.

Unit of 2009-10 2009-10 Measure Target Actual

QU ANTITY Altona/Laverton Intermodal Terminal works per cent 25 25 Channel Deepening: Project Implementation per cent 100 100 North East Rail Gauge Standardisation per cent 100 70 (53) Road-based freight accessibility and reliability number 5 11 (54) improvement projects completed

Q uaLITy Road based freight accessibility and . reliability projects completed within specified per cent 100 100 scope and standards

TIMELINESS Mildura Rail Corridor Upgrade project: per cent 100 100 construction completed Planned infrastructure asset renewal activities per cent are delivered within project timelines: country 90 100 cumulative freight rail network Road-based freight accessibility and reliability per cent 100 100 projects completed within agreed timeframes

C oST Total output cost $ million 62.1 64.5

53. The North East Rail Gauge Standardisation project is now scheduled for completion by the end of 2010. 54. Additional projects which were not originally targeted to be completed in 2009-10.

170 Transport Outcome Performance

The following section provides results These indicators are being reported against the outcome performance in the DOT Annual Report for the first indicators associated with DOT’s five time and this report sets benchmarks strategic priorities. These indicators for these indicators. Notes are are designed to show the impact, or provided to explain the rationale for outcome, resulting from our activities the inclusion of the indicator in the and budget outputs. They indicate our outcome indicator set. In some cases, level of achievement towards meeting indicators are still under development the desired triple bottom line goals for or additional or more recent data are the transport system. being sourced, which will be provided in future annual reports.

Priority: 1 Integrate transport and land use planning

Outcome indicator Target Rationale Result Median trip length by mode Reduce Reducing median trip length indicates As at June 2008: that better transport and land use Bicycle: 3.2 km integration is enabling people to Bus: 8.2 km undertake shorter trips to meet their needs within the community Car driver: 5.9 km Car passenger: 4.8 km Train: 18.2 km Tram: 5.5 km Walk only: 0.7 km

Proportion of trips starting or Increase Increasing proportion of trips ending As at June 2008: ending in Central Activities in the CAD indicates that the CADs 4.1% Districts (CADs) are meeting more of the needs of the community and the city is becoming more polycentric in nature

Mode share of trips starting . Increase share of Increasing mode share of sustainable As at June 2008: or ending in CADs sustainable travel travel modes to CADs indicates increased Sustainable (bicycle, walk, modes sustainable travel by the community public transport): 21.2% Car (driver and . passenger): 78.3% Other: 0.5%

Travel time and variability . Reduce Reducing travel time variability on key Indicator under on key freight routes freight routes indicates more travel time development certainty and better delivery service and cost control for business

171 Department of Transport Annual Report 2009-10 Priority: 2 Support the Victorian economy with an effective and resilient transport system

Outcome indicator Target Rationale Result Public transport services . Rate of growth in A higher rate of growth in public 2009-10: per person services > growth transport services compared to the rate Services: 1.8% in population of growth in population indicates that the Population: 1.6% provision of public transport services is keeping up with population growth

Rail capacity and utilisation . Increase Increasing metropolitan rail capacity As at May 2010: (AM peak) indicates that more passengers can be Capacity growth: 0.5% carried on metropolitan trains. The rate Utilisation: 82.1% of utilisation indicates the extent to which those services are full

Public transport . Increase Increasing public transport patronage 2009-10: patronage growth indicates that more people are using Metropolitan: 1.5% public transport and making more Regional: 4.2% sustainable trips

Public transport . Increase Increasing public transport punctuality . 2009-10: (1) punctuality is a measure of the quality of public . Metropolitan train: 85.4% transport services Tram (over route): 81.9% Tram (at destination): 71.6% Metropolitan bus: 94.1% Regional train: 85.2%

Public transport reliability Decrease Decreasing numbers of cancellations . 2009-10: (2) (cancellations) is a measure of the quality of public Metropolitan train: 1.1% transport services Tram: 0.7% Metropolitan bus: <0.1% Regional train: 1.5%

Public transport . Stable or Increasing customer satisfaction is . 2009-10: customer satisfaction improving trend a measure of the quality of public Metropolitan train: 59.6 transport services Tram: 69.4 Metropolitan bus: 69.0 Regional train and . coach: 73.4 Taxi: 56.4

Service kilometres . Metropolitan: The number of service kilometres Quarter ending . between public transport 6,700 km between public transport infrastructure 30 June 2010: infrastructure faults faults indicates the reliability of the Regional: . Metropolitan: 17,273 km infrastructure. The greater the distance 13,000 km Regional: 7,290 km between faults, the more reliable is . the infrastructure

1. .. .From 30 November 2009 new rail franchise agreements took effect with a new punctuality measure introduced. This is now measured as services arriving no more than 59 seconds before and no later than four minutes and 59 seconds after the scheduled timetable. Results presented are for the full 2009-10 year with the post 30 November 2009 definitions applied. 2... .From 30 November 2009 new rail franchise agreements took effect with a new reliability measure introduced accounting for the service cancellations, . short services and bypass events. Results presented are for the full 2009-10 year with the post 30 November 2009 definitions applied.

172 Priority: 2 Support the Victorian economy with an effective and resilient transport system (continued)

Outcome indicator Target Rationale Result

Disabled access to public 55% compliance By 2012, Victoria is required to have As at March 2010: transport – Vehicles (trains, by 2012 55 per cent of its trains, trams and Metropolitan train: 96% trams and buses) buses accessible to the disabled as Tram: 24% detailed in the Commonwealth Disability Discrimination Act 2002 Metropolitan bus: 70% Regional train: 89% Regional bus: 50%

Disabled access to public 55% compliance As at March 2010: transport – Infrastructure (train by 2012 Metropolitan train: 40% stations, tram and bus stops) Tram: 17% Metropolitan bus: 40% Regional train: 44% Regional bus: 52%

Public transport services . Increasing public transport services Indicator and target . to persons experiencing to persons experiencing transport under development transport disadvantage disadvantage indicates an opportunity for greater social inclusion and decreased social disadvantage

Public transport costs . Reduce Reducing public transport costs as a As at May 2010: as proportion of average . proportion of average weekly earnings 3.16% weekly earnings indicates that people can continue to or are increasingly able to access the economic and social opportunities available through travel

Smooth travel exposure . Metropolitan . Smooth travel exposure on urban 2009-10: on urban and regional . 90% < 4.2 IRI and regional roads increases ride Metropolitan: . roads (IRI – International quality and reduces the cost of repair Regional: . 91% < 4.2 IRI Roughness Index) and maintenance associated with 92% < 4.2 IRI Regional: . unnecessary rough travel 93% < 4.2 IRI

Road travel delay Rate of growth A lower rate of growth in travel delays 2009-10: in travel delays compared to the rate of growth in Travel delay growth: -0.4% < growth in vehicle kilometres travelled indicates Vehicle kilometres vehicle kilometres that vehicular traffic is moving more travelled growth: -2.3% travelled efficiently on metropolitan freeways and arterial roads

Victorian ports interface costs Competitive port Competitive port interface costs indicate July-December 2009: interface costs that port operations are efficient and that Imports: $867 freight companies will be attracted to Exports: $837 operating through Victoria’s ports

Efficiency of the freight . Increase tonnes Increasing the tonnes carried per vehicle 2007-08: vehicle fleet carried per indicates increased efficiency of the 4.33 tonnes vehicle freight vehicle fleet

173 Department of Transport Annual Report 2009-10 Priority: 3 Ensure safety for all transport users

Outcome indicator Target Rationale Result Fatalities arising from . 30% reduction Reducing fatalities and serious injuries arising 2009: road incidents from 2008-2017 from using Victoria transport network and services 290 indicates a vital improvement in community safety, reduced trauma for many and better economic outcomes for the community overall

Serious injuries arising 30% reduction Reducing fatalities and serious injuries arising 2009: from road incidents from 2008-2017 from using Victoria transport network and services 6,085 indicates a vital improvement in community safety, reduced trauma for many and better economic outcomes for the community overall

Fatalities involving Reducing fatalities and serious injuries arising 2009: cyclists and from using Victoria transport network and services Cyclist: 6 pedestrians arising indicates a vital improvement in community safety, Pedestrian: 50 from road incidents reduced trauma for many and better economic outcomes for the community overall

Serious injuries Reducing fatalities and serious injuries arising 2009: involving cyclists and from using Victoria transport network and services Cyclist: 459 pedestrians arising indicates a vital improvement in community safety, Pedestrian: 654 from road incidents reduced trauma for many and better economic outcomes for the community overall

Passenger fatalities on . Reduce Reducing fatalities and serious injuries arising 2009-10: public transport from using Victoria transport network and services Metropolitan and . indicates a vital improvement in community safety, regional train: 1 reduced trauma for many and better economic Tram: 0 outcomes for the community overall Metropolitan and . regional bus: 0

Passenger serious Reduce Reducing fatalities and serious injuries arising 2009-10: injuries on public from using Victoria transport network and services Metropolitan and . transport indicates a vital improvement in community safety, regional train: 23 reduced trauma for many and better economic Tram: 13 outcomes for the community overall Metropolitan and . regional bus: 23

Reported crime against Rate of growth A lower rate of growth of reported . 2008-09: the person on the rail in reported crimes against the person on the rail network Reported crimes: -10.5% network crimes . compared to the rate of growth in train patronage Metropolitan train . < growth in indicates increased passenger safety patronage: 6.3% train patronage

Satisfaction with Increase Increasing satisfaction with personal safety on 2009-10: personal safety on public transport indicates that people feel safer on Metropolitan train: 60.1 public transport the network and removes a barrier to using public Tram: 69.2 transport Metropolitan bus: 75.4 Regional train and coach: 78.1 Taxi: 73.2

Fatalities and serious Reduce Reducing fatalities and serious injuries arising 2009-10: injuries arising from from using Victoria transport network and services Fatalities: 4 marine incidents on indicates a vital improvement in community safety, Serious injuries: 16 Victoria’s waterways reduced trauma for many and better economic outcomes for the community overall

174 Priority: 4 Improve the sustainability of Victorian transport

Outcome indicator Target Rationale Result Percentage of personal 20% by 2020 Increasing the percentage of personal 2008-09: motorised trips in Melbourne motorised trips in Melbourne taken 14.3% taken on public transport on public transport indicates reduced reliance on cars and more sustainable travel

Weekday private trips . Increase share of Increasing the share of sustainable travel June 2008: by mode sustainable travel modes for weekday private trips indicates Sustainable (bicycle, walk, modes more sustainable travel public transport): 22.6% Car (driver and . passenger): 76.6% Other: 0.8%

Off road bicycle path use in inner Increase Increasing off-road bicycle path use Summer to Spring 2009: Melbourne (AM peak) provides an indication in the growth 7.4% increase from 2008 of commuter cycling, leading to more sustainable travel

Total volume of freight carried Increase Increasing the total volume of freight 2007-08: by rail in Victoria carried by rail in Victoria indicates that 7.94 billion . more freight is being carried off-road, tonne-kilometres saving truck journeys

Fuel consumption per . Reduce Reducing fuel consumption per vehicle 2007-08: vehicle kilometre kilometre for petrol vehicles indicates a Petrol vehicles: . more fuel efficient car fleet 11.4 litres/100 km

Transport greenhouse emissions Reduce Reducing transport greenhouse 2007-08: per vehicle kilometre emissions per vehicle kilometre indicates 380 g/km a more emission efficient fleet

Car occupancy rate Increase Increasing car occupancy rate indicates 2008-09: that cars have more people in them per 1.21 trip, making them more efficient as a means of travel

Use of renewable energy . Increase Increasing the use of renewable energy 2007-08: in transport in transport indicates a more sustainable Renewable energy use . transport system by road transport: 0.28% Renewable energy use . by rail transport: 0.36%

175 Department of Transport Annual Report 2009-10 Priority: 5 Build a collaborative and effective organisation

Outcome indicator Target Rationale Result Turnover resulting from bullying Reduce Reducing turnover resulting from bullying As at March 2010: and harassment and harassment indicates a healthier Zero DOT workplace

People rating the department . 80% DOT people being satisfied with the June 2010: a great place to work department and their work is a leading 64.1% indicator of the health of the workplace

Transport infrastructure projects 80% Delivering transport infrastructure 2009-10: delivered on time and budget projects on time and budget indicate that On time: 69% the portfolio’s planning and delivery of On budget: 100% infrastructure projects is sound

176 Better Roads Victoria Trust Account

The Victorian Government’s Better Roads Victoria Trust was established in 1993 under the Business Franchise (Protection Products) Act 1979. The Act specified that a State franchise levy on petrol and diesel fuel sales would be paid into the Better Roads Victoria Trust. Following the abolition of this levy in August 1997, the Victorian Government has continued to make equivalent payments to the Trust, together with $17 per motor vehicle registration applicable from 1 July 2003 and subsequent indexation. In addition, from 1 July 2005, all receipts collected from traffic cameras and on-the-spot speeding fines are channelled into the Better Roads Victoria Trust. Funds from the Better Roads Victoria Trust are used for the construction and maintenance of roads in accordance with the Road Management Act, road safety initiatives and traffic integration projects.

2009-10 Actual $ million Opening cash balance 120.1

S fourCE o Funds BRV revenue 381.5 Traffic camera and on-the-spot fines revenue 276.6 Total funding available 778.2

A pPLICATION of Funds Road projects 274.4 Programs funded from traffic camera and on-the-spot fines revenue Traffic and transport integration management 70.2 Road safety management 29.0 Road system management 177.4 Total payments from trust 551.0 Closing cash balance (1) 227.3

1. The closing balance is fully committed to future approved projects.

177 Department of Transport Annual Report 2009-10 Environmental Performance Report

This environmental performance report has been prepared in accordance with the requirements set out in the ‘Financial Reporting Direction 24 (FRD 24C): Reporting of Office-based Environmental Impacts by Government Departments’. It relates to the Department’s office-based activities only. It should be noted that comparatives are only provided where similar data was available in the previous year.

DOT consumes energy for its office facilities located at 121 Exhibition St Melbourne and 80 Collins St Melbourne. The data represented below was collected through energy retailer billing information and represents 100 per cent of sites and 100 per cent of FTE staff. (FTE figure for 2009-10 was 1,241)1

Indicator 2009-10 2008-09 Electricity Green Power Electricity Green Power Total energy usage segmented by primary source (MJ) 6,433,010 1,508,977 8,228,232 1,539,932 Greenhouse gas emissions associated with energy use, . 2 2,417 2,994 segmented by primary source and offsets (t CO2-e) Percentage of electricity purchased as Green Power (%)3 19% 16% Units of energy used per FTE (MJ/FTE) 5,192 1,216 6,334 1,185 Units of energy used per unit of office area (MJ/m2) 181 42 239 45

Trend reporting:

Energy Unit of measure 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 Use per square metre of office space4 Megajoule 223 284 263 340 378.5 447.5

Explanatory Notes 1. 100 per cent of total sites and 100 per cent of total FTE staff represented by data. 2. Greenhouse gas emissions decreased by 19 per cent from 2008-09. 3. Purchasing of Green Power increased to 25 per cent in February 2010, 19 per cent was the average of the 12 month period. 4. Use per square metre of office space has decreased by 50 per cent over the last 5 years.

Actions undertaken: Targets: »» Ensuring any new office fit-outs . »»T DO will attempt to reduce its are energy efficient energy consumption in 2009-10 »» Continuing to limit the growth of »» DOT will commit to purchasing . peripheral electronic equipment . 25 per cent Green Power by on floors February 2010 »» Continuing to encourage . people to turn off their PCs . after hours, including distributing Switch Off stickers and running awareness campaigns »» Continuing to investigate other energy saving options

178 Waste

The waste generated by processes in DOT is divided into three general classes – landfill, compost and recycling. DOT’s waste management program facilitates the easy segregation of waste materials for recycling, composting or landfill in DOT offices.

The data presented below is derived from a five day waste audit conducted at two sites, 121 Exhibition Street and 80 Collins Street accommodating 100 per cent of FTE staff, as well as contractors and others.1

Indicator 2009-10 Landfill Commingled recycling Compost Total units of waste disposed of by destination (kg/yr) per year 16082 72783 18741 Units of waste disposed of per FTE by destination (kg/FTE) per year2 8.483 38.18 9.35 Recycling rate (% of total waste) 84.5

Greenhouse gas emissions associated with waste disposal (t CO2-e) 18.29

Trend reporting:

W aste Unit of measure 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 Total recycled Kilograms 91,524 68,602 70,544 94,241 72,749 44,355

Explanatory Notes 1. First occasion that a complete five day audit of all DOT staff (100 per cent FTEs, contractors and others) and sites has been conducted. 2. Calculations for FTE figures have been averaged across the two DOT sites. 3. Units of waste disposed to landfill per year decreased by approximately two kg per staff member.

Actions undertaken: Target: »W» aste awareness bulletins »»T DO will attempt to generate . less landfill waste per year »» Independent waste audit, . including a contamination audit, to identify further opportunities to reduce waste to landfill and promote recycling »» Recycling or reuse of all government owned computers

179 Department of Transport Annual Report 2009-10 Paper

The data represented below was collected through paper retailer billing information and represents 100 per cent of sites and 100 per cent of staff. (1,241 FTEs)1

Indicator 2009-10 2008-09 Total units of copy paper used (reams)2 22,223 22,028 Units of copy paper used per FTE (reams per FTE) 17.9 16.7 Percentage 76-100% recycled content copy paper purchased (%)3 35 12 Percentage 51-75% recycled content copy paper purchased (%) 0 0 Percentage 50% recycled content copy paper purchased (%) 55 87 Percentage 0-50% recycled content A3 paper and coloured paper purchased (%) 10 1

Trend reporting:

Paper Unit of measure 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 Use per FTE4 Reams 17.9 16.7 19.9 19.9 22.1 24.7 Total use Reams 22,223 22,028 21,493 20,544 24,676 23,087

Explanatory Notes 1. 100 per cent of total sites and 100 per cent of total staff represented by data. 2. Total paper increase due to increase of 74 FTEs from 2008-09. 3. Increase of 23 per cent for paper purchased with 76-100 per cent recycled content. 4. Decrease of paper consumption by 8.5 reams per FTE over the last 5 years.

Actions undertaken: Target: »» Staff awareness campaigns relating »»T DO will attempt to reduce . to purchasing of higher recycled paper consumption per FTE content paper »» Continued roll-out of DOT’s electronic document management system (TRIM) »» All paper chosen by Corporate Public Affairs for publications . has environmental consideration (ISO 14001 or FSC certified) »» Default printers to print . double-sided (where printers . have capability)

180 Water

The below data is based on water meter readings at DOT’s sites, covering 100 per cent of staff. (1,241 FTEs)1

121 Exhibition Street / 80 Collins Street Indicator 2009-10 2008-09 Potable water use – Tenancy Only – (KL/FTE)2 3.56 3.44 Potable water use – Tenancy Only – (KL/Year) 4433 4050 Potable water use – Tenancy Only – (KL/m2) 0.12 0.12

Explanatory Notes 1. 100 per cent of total sites and 100 per cent of total of FTE staff represented by data. Quality of data improved due to both sites having individual floor metres. 2... .The Potable Water Use – Tenancy only at 121 Exhibition Street is based on metred water used in the showers, kitchens and tea points. At 80 Collins Street, metered water is measured using the showers, kitchens and toilets. The figures for both sites are combined and averaged.

Actions undertaken: Target: »W» ater meters installed on every »T»o continue to promote the DOT floor at 121 Exhibition St and conservation of water through 80 Collins St to improve water awareness campaigns consumption monitoring »W» ater awareness bulletins

181 Department of Transport Annual Report 2009-10 Transport

DOT’s fleet comprises 89 vehicles, excluding executive vehicles. Of these vehicles, 34 per cent are LPG, 57 per cent are . four cylinder petrol-fuelled and 9 per cent are six cylinder petrol-fuelled. Of the 89 vehicles1 18 per cent are hybrid vehicles. The overall fleet numbers have reduced and the percentage and actual number of hybrid vehicles has increased.

Indicator 2009-10 Vehicle data: Unleaded Diesel LPG E10 Total energy consumption by vehicles (MJ) 3,362,065 2,131,376 2,340,708 184,776 Total vehicle travel associated with entity operations (km) 1,188,284 469,343 650,155 N/A2

Total greenhouse gas emissions from vehicle fleet (t CO2-e) 252 160 154 12

Greenhouse gas emissions from vehicle fleet per 1,000km travelled (t CO2-e) 0.20 0.34 0.23 N/A

Air travel data: Total distance travelled by aeroplane (domestic and international) (km) 1,685,359 Travel to Work Survey: 3 Percentage of employees regularly (>75% of work attendance days) using public transport, cycling, 84.5 walking to and from work or working from home

Trend reporting:

Transport Unit of measure 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 Total fuel consumption Megajoules 8,018,926 8,844,968 9,135,105 10,261,000 12,519,000 11,829,000

Total associated greenhouse Tonnes of CO2 578 631 652 741 897 834 gas emissions equivalent4

Explanatory Notes 1. Hybrid component of fleet increased by 4 per cent from 2008-09. 2. Kilometres travelled not available with E10 fuel. 3. Travel to work survey conducted on 23 June 2010. 4. Greenhouse gas emissions reduced by 30 per cent over the last 5 years.

Actions undertaken: Target: »» Reducing greenhouse gas »D» OT will attempt to further reduce emissions by incorporating more greenhouse gas emissions from . four cylinder, LPG and hybrid pool and dedicated vehicles vehicles into the DOT fleet »» Promotion of refuelling using ethanol-based fuel (E10 fuel), where possible »» Promotion of public transport in lieu of departmental fleet vehicles

182 Greenhouse gas emissions

The greenhouse gas emissions1 disclosed in the section below are taken from the previous sections and brought together to show DOT’s greenhouse footprint. All areas indicated a decrease in emissions with the exception of waste.

Indicator 2009-10 2008-09

Greenhouse gas emissions associated with energy use (t CO2-e) 2,417 2,994

Greenhouse gas emissions associated with vehicle fleet (t CO2-e) 578 631

Greenhouse gas emissions associated with air travel (t CO2-e) 518 807

2 Greenhouse gas emissions associated with waste production (t CO2-e) 18.29 13.87

3 Greenhouse gas emissions offsets purchased (t CO2-e) 0 0

Explanatory Notes » 100 per cent of total sites and 100 per cent of staff represented by all data. » Decreases in all areas for greenhouse gas emissions except waste. » Waste emissions increased due to the first total audit of all DOT staff over a five day period. Only 75 per cent of FTEs were reported in 2008-09. » Refer to energy, transport and waste sections. 1... .Greenhouse gas emissions are based on the Department of Climate Change and Energy Efficiency National Greenhouse Accounts Factors June 2009. . The July 2010 factors were not available in time to be used for this report. 2... .A transcription error occurred in the 2008-09 year. The figure quoted was 556t C02-e. The correct figure for that period is 14t C02-e. 3... .In line with the Victorian Government’s commitment in Our Environment, Our Future 2006 to offset the Victorian Government’s passenger vehicle fleet emissions, DSE will purchase offsets equivalent to DOT’s passenger vehicle emissions for the 2009-10 financial year. The purchase of offsets will be done . in arrears. For the 2009-10 financial year, 578 tonnes of greenhouse gas emissions generated by 89 DOT passenger vehicles will be included in the total offset purchase by DSE.

Actions undertaken: Procurement Targets: »» Refer to Energy, Transport . »T»o ensure 100 per cent of A4 copy and Waste sections DOT has undertaken the following paper purchase contains at least . procurement actions: 50 per cent recycled-content Target: »» DOT publicises the green section . »T» o ensure that environmental »» Refer to Energy, Transport . of stationery catalogue, for factors are considered when and Waste sections stationery purchases purchasing furniture »» DOT has embedded environmental »T» o further develop the embedding . sustainability into DOT contracts of environmental sustainability . and procurement processes into DOT contracts and procurement processes

183 Department of Transport Annual Report 2009-10 Legislation (administered as at 30 June 2010)

Ast0 a 3 June Acts administered Transport Act 1983 by the Minister for »P» art II Division 1, Subdivisions . 2010, the following Public Transport 2, 3 and 4 legislation was »» Section 32 (only insofar as it does Border Railways Act 1922 not relate to the Roads Corporation, administered by the This Act ratifies an agreement which is administered by the Minister for Public between the States of Victoria Minister for Roads and Ports) and NSW as to the construction, »P» art VI, Division 10 Transport and . maintenance and operation of . railway lines and the construction . »P» art VII, Divisions 4, 4AA, 4A, 4B the Minister for and maintenance of bridges . This Act is otherwise jointly across the . Roads and Ports. administered with the Minister for National Rail Corporation Roads and Ports (except Part II, (Victoria) Act 1991 Division 3; sections 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31 and 35; Part This Act approves and gives effect IV and Part VI, Division 8, which are to an agreement made between administered by the Minister for the Commonwealth and the States Roads and Ports). of Victoria, New South Wales, , and This Act establishes and sets out relating to the establishment and the functions and powers of the operation of the National Rail Department of Transport in relation. Corporation Limited. to transport matters, and those of the Roads Corporation, as well as Public Transport establishing a number of statutory Competition Act 1995 offices. The Act also provides for . This Act provides for the . the licensing of commercial vehicles accreditation of passenger bus and for various offences, as well as operators and implements a . enforcement powers relating . system of service contracts for . to railway and tram safety. route service operations. Very Fast Train (Route Rail Corporations Act 1996 Investigation) Act 1989 The main purpose of this Act is . The purpose of this Act is to facilitate to establish VicTrack, the Southern the investigation of a route for a very Cross Station Authority and V/Line fast train linking Melbourne with other Passenger Corporation. It also centres within or outside the state. provides for a rail access regime . and confers certain powers on rail . and tram operators. Rail Safety Act 2006 The main purpose of this Act is to provide for safe rail operations in Victoria, including the management and accreditation of rail infrastructure.

184 Legislation (administered as at 30 June 2010). (continued)

Acts administered by EastLink Project Act 2004 Local Government Act 1989 the Minister for Roads The Act provides for the facilitation . Clauses 4 and 9(3) of Schedule 11 . and Ports of the design, construction, operation, and section 123, insofar as it relates maintenance and management of to the revocation of local laws made Accident Towing Services Act 2007 the EastLink Freeway as well as the pursuant to the powers conferred by collection and enforcement of tolls those clauses by reason of section . This Act aims to promote the safe, relating to use of the freeway. 207 of the Act. efficient and timely provision of accident towing services through Land Act 1958 (This Act is otherwise administered . licensing the operation of tow trucks by the Minister for Local Government Insofar as it relates to the exercise and the accreditation of tow truck and the Attorney General.) drivers and operators and managers of power relating to the leases and of accident towing services. licences under Subdivisions 1 and . This Act provides generally for matters 2 of Division 9 of Part 1 in respect of to do with local government in Victoria. Chattel Securities Act 1987 the land described as Allotment 18 The provisions administered by the of Section 12, City of Port Melbourne, Part 3 Minister for Roads and Ports relate to Parish of Melbourne. South, being the revocation of local laws. (This Act is otherwise administered . the land in Certified Plan No. 119746 by the Minister for Consumer Affairs) lodged in the Central Plan Office of Marine Act 1988 DSE, known as Station Pier. This Act establishes the Director of This Act makes provision for security Marine Safety and provides for the interests in motor vehicles, trailers, Insofar as it relates to the land objects, power and functions of the and vessels, including registration coloured green on Plans numbered Director. In particular, the Director of interests. Part 3 provides the LEGL./08-002 and LEGL./08-003k, regulates marine safety through the registration requirements for . lodged in the Central Plan Office, exercise of its powers and functions. security interests. except certain sections administered by the Minister for Finance, and The Act also provides for registration Crown Land (Reserves) Act 1978 certain sections jointly administered of vessels, regulation of the operation by the Minister for Environment and of vessels, offences involving alcohol, Only insofar as it relates to the land Climate Change and the Minister . prevention of pollution of state waters, shown as Crown Allotment 18, section for Finance, WorkCover and the the adoption of certain international 12, City of Port Melbourne, Parish Transport Accident Commission. conventions, enforcement of various of Melbourne South, as shown on offences through the issue of . Original Plan No. 119746-A lodged . (This Act is otherwise administered marine infringement notices and . in the Central Plan Office – by the Minister for Planning, the for other matters. (LA/32/0012) known as Station Pier. Attorney-General, the Minister for Finance, WorkCover and the . Melbourne City Link Act 1995 (The remaining provisions are Transport Accident Commission, . administered by the Minister for This Act relates to the construction the Minister for Health, and the and operation of the Melbourne Finance, WorkCover and the Transport Minister for Corrections) Accident Commission, the Minister CityLink, and provides for the fixing, for Major Projects, the Minister for charging and collection of tolls in Planning and the Minister for Sport, relation to the use of vehicles in . Recreation and Youth Affairs.) toll zones.

185 Department of Transport Annual Report 2009-10 Pollution of Waters by Oil and Road Safety Act 1986 Westernport (Crib Point Terminal) Noxious Substances Act 1986 Act 1963 This Act provides for the registration . All sections except for sections 30 of motor vehicles, licensing of . This Act assists the development . and 47, which are jointly administered drivers, offences involving alcohol and operation of a petroleum with the Minister for Environment and or other drugs and other provisions terminal at Crib Point by providing . Climate Change, and sections 8, 9, . regulating the operation and use of for certain existing and new 10, 11, 12, 13, 18, 19, 20, 21, 22, 23, motor vehicles. easements, and clarifying the status 23B, 23D, 23E, 23G, 23J, 23K, 23L . of existing agreements relating to . and 24E, which are administered by Southern and Eastern Integrated the pipeline running from the the Minister for Environment and Transport Authority Act 2003 terminal site to Dandenong. Climate Change. The purposes of this Act are to Major Transport Projects establish Southern and Eastern This Act provides for the protection . Facilitation Act 2009 Integrated Transport Authority . of the sea and other waters . and to facilitate the Southern and The purpose of this Act is to facilitate from pollution by oil and other . Eastern Integrated Transport Project. the development of major transport noxious substances. projects. The Act establishes a Transport Act 1983 Port Services Act 1995 one-stop-shop to consolidate and »P» art II, Division 3 streamline environmental, planning All sections and schedules except and heritage approvals for major »P» art II, Division 4 (section 32 only sections 160, 171 and 173, which are transport projects which have been insofar as it relates to the Roads administered by the Treasurer, and declared to be of State or regional Corporation with the balance of that sections 63AA-63J (inclusive), which economic, social or environmental section being administered by the are administered by the Minister . significance. The Act also provides . Minister for Public Transport) for Finance, WorkCover and the a suite of project delivery powers . Transport Accident Commission. »» Section 35 for the development of major transport projects. This Act establishes the Port of »P» art IV Melbourne Corporation, Port of »P» art VI, Division 8 Hastings Corporation, and the Acts passed during Victorian Regional Channels . This Act is otherwise jointly 2009-10 Authority. The Act also provides for administered with the Minister for Minister for Public Transport charges and licensing for port use. Public Transport (except Part II, »» Transport Legislation Amendment Division 1, Subdivisions 2, 3 and Road Management Act 2004 (Compliance, Enforcement and 4; Part VI, Division 10 and Part VII, Regulation) Act 2010 The Act establishes a statutory Divisions 4, 4AA, 4A and 4B, which Assent 18 May 2010 framework for the management . are administered by the Minister for of the road network, facilitating . Public Transport). »» Transport Integration Act 2010 the coordination of various uses . Assent 2 March 2010 of road reserves for roadways, This Act establishes and sets out pathways, infrastructure, and . the functions and powers of the Minister for Roads and Ports similar purposes. Department of Transport in relation »» Major Transport Projects to transport matters, and those of Facilitation Act 2009 the Roads Corporation as well as Assent 29 September 2009 establishing a number of statutory offices. The Act also provides for the »» Transport Integration Act 2010 licensing of commercial vehicles Assent 2 March 2010 and for various offences as well »» Transport Legislation Amendment as enforcement powers relating to (Hoon Boating and Other railway and tram safety. Amendments) Act 2009 Assent 15 December 2010

186 Whistleblowers Protection Act 2001

Report pursuant to section 104 . »» The number and types of disclosed of the Act for the year 1 July 2009 . matters taken over by the to 30 June 2010: Ombudsman from DOT: NIL »» DOT has publicly accessible »» The number of requests by procedures for managing disclosures complainants to have their disclosed matters investigated »» The number and types of by the Ombudsman due to their disclosures made to DOT: One dissatisfaction with the way DOT »» The number of disclosures referred is investigating the matter (the by DOT to the Ombudsman to circumstances are set out in determine whether they are public section 74 of the Act): NIL interest disclosures: NIL »T» he number and types of disclosed »» The number and types of disclosed matters that DOT declined to matters referred to DOT by the investigate: One Ombudsman: NIL »» The number and types of disclosed matters referred by DOT to the Ombudsman to investigate: NIL

Freedom of Information Act 1982

The Freedom of Information Act 1982 Access to documents (as defined in gives the public a right of access section 5 of the Act) may be obtained to documents held by government only through written request as departments. detailed in section 17 of the Freedom of Information Act 1982. Requests may For the period 2009-10, DOT received be submitted in writing, addressed to: 271 applications. Of these requests, 48 were from Members of Parliament, Freedom of Information Manager 75 from the media and the remainder Department of Transport were from the general public. During PO Box 2797 the reporting period, the department Melbourne VIC 3001 received 20 requests for internal Telephone: (03) 9655 6380 review, with four subsequently Email: [email protected] progressing to the appeal stage at the Victorian Civil and Administrative Alternatively, requests may be Tribunal (VCAT). A further four submitted online through Freedom. requests went directly to appeal. of Information Online, located at . www.foi.vic.gov.au.

187 Department of Transport Annual Report 2009-10 Victorian Industry Participation Policy

In October 2003, the Victorian New Projects Completed Projects Parliament passed the Victorian Industry Participation Policy Act During 2009-10, DOT commenced . There were 10 projects completed in 2003 which requires public bodies 23 contracts and varied two contracts . this period to which the VIPP applied. and departments to report on the to which the VIPP applied. Their . Their total value was $139 million. total value was $5,168 million. implementation of the Victorian The contractors under these contracts Industry Participation Policy (VIPP). The VIPP commitments by contractors achieved the following: Departments and public bodies are under these contracts included: required to apply VIPP in all tenders »» An overall level of local content . over $3 million in metropolitan »» An overall level of local content . of approximately 90 per cent of approximately 93 per cent Melbourne and $1 million in . »» Approximately 353 full time regional Victoria. »» 6,434 full time equivalent jobs equivalent jobs

»» 34 full time equivalent In addition, the following benefits . apprenticeships / traineeships . to the Victorian economy in terms . were committed to of skills and technology transfer . were provided by contractors under In addition, the following benefits . these contracts: to the Victorian economy in terms . of skills and technology transfer. »» On the job training were provided by contractors under »» Skills training and knowledge these contracts: transfer in specialist areas of . »» On the job training civil works »» Skills training and knowledge »» Operated a graduate program transfer in specialist areas of . including graduate training civil works »» Apprenticeships and traineeships

During 2009-10, DOT commenced 1,514 contracts for country free . school bus services to which the . VIPP applied. Their total value was . $2,117 million.

The VIPP commitments by contractors under these contracts included: »A» level of local content generally above 80 per cent »» Commitments to local employment

In addition, the following benefits . to the Victorian economy in terms . of skills and technology transfer . were provided by contractors under these contracts: »» Driver training programs

188 National Competition Policy Compliance

National reform agenda Victoria released Victorian Local Gary Liddle, CEO VicRoads, leads Roads: Critical links in the national the productivity and efficiency Infrastructure Australia supply chain in October 2009 to work program, which includes the demonstrate the important role important COAG Road Reform Plan In January 2008, the Commonwealth of local roads in the national (CRRP). CRRP’s objective is to move Government announced the supply chain. This document calls the nation to a more effective and establishment of Infrastructure on the Commonwealth, through efficient system for pricing . Australia, under the Infrastructure Infrastructure Australia, to establish . heavy vehicles. Australia Act 2008, to advise a new program that targets the governments on nationally significant economic role of local roads in the Jim Betts, Secretary, Department . economic infrastructure projects Australian economy. of Transport, leads the Environment in the telecommunications, energy, work program which includes water and transport sectors. Through the Intergovernmental endorsing the National Strategy on Relations Division of the Department, Energy Efficiency Implementation Infrastructure Australia has a Victoria will continue to work Plans. The National Strategy on Energy mandate to conduct regular audits collaboratively with Infrastructure Efficiency includes a number of to determine the adequacy, capacity Australia as these national policies significant transport measures. and condition of nationally significant progress through the Council of infrastructure, as well as: Australian Governments in the . Victoria’s contribution to the National »» Evaluating the business case second half of 2010. Transport Plan has been critical in for new infrastructure, when other jurisdictions recognising the . commissioned to do so Nation Building Program role of passenger transit systems . in the national network, as well as . »» Reviewing and providing advice Through the Nation Building . the importance of connectivity to on measures that would improve Program, the Victorian Government trading ports. harmonisation of policy and negotiated with the Commonwealth regulatory regimes that facilitate Government for funding for 25 Victoria will also continue to ensure infrastructure development . projects across the road, rail and that, as the National Transport and investment intermodal sectors. Victoria continued Plan progresses, it aligns with the policy work being undertaken by »» Identifying barriers and the delivery of the projects in 2009-10 . Infrastructure Australia as part of . disincentives to investment in under the terms of the bilateral the National Ports Strategy and nationally significant infrastructure Memorandum of Understanding with the Australian Government signed National Freight Strategy. During 2009-10, Victoria was proactive in March 2009 by the Minister for DOT looks forward to continuing to in engaging with Infrastructure Roads and Ports, Tim Pallas, MP work with the transport sector, local Australia in the development of and the Commonwealth Minister for councils, and Victorian businesses . strategies for the nation’s ports Infrastructure, Anthony Albanese, MP. to progress the transport reform and freight networks. Victoria’s agenda for Australia. priority projects submission, with National Transport Plan a strong focus on port and freight The Commonwealth Minister related projects, was drafted to be for Infrastructure announced complementary with the national on 29 February 2008 that the strategies under development by Commonwealth would work with Infrastructure Australia. State Governments to create a National Transport Plan.

Victoria is supporting the national reform agenda by driving the Australian Transport Council’s work on productivity and efficiency, and . the environment work program, as part of the National Transport Plan.

189 Department of Transport Annual Report 2009-10 Secretary’s Attestation of Risk Management

In accordance with Ministerial “I, Jim Betts certify that the Direction 5.4.4 under the Financial Department of Transport, as at . Management Act 2004 and the 30 June 2010, has risk management Victorian Government Risk processes in place consistent with Management Framework – and – the Australian/New Zealand Risk following a management review of Management Standard 4360: 2004 DOT’s risk management practices – and an internal control system is the Secretary makes the . in place that enables the executive following attestation. to understand, manage and satisfactorily control risk exposures consistent with the assessed level of maturity. The DOT Audit Committee verifies this assurance and that the risk profile of the Department of Transport has been critically reviewed within the last 12 months.”

Building Act Compliance

The Directions of the Minister for DOT complies with the building Finance require this Annual Report and maintenance provisions of the to include a statement on the extent Building Act 1993. of compliance with the building and maintenance provisions of the Building Act 1993, for publicly-owned buildings controlled by DOT.

Disclosure of Major Contracts Compliance

DOT has disclosed all contracts This contract was entered into late . greater than $10 million in value which in the year and is being prepared . it entered into in 2009-10, with the for publication. exception of the following contract: The disclosed contracts can be viewed »» Sunbury Electrification Alliance at www.contracts.vic.gov.au

190 Consultant Engagements

Details of consultancies over $100,000

Consultant Purpose of consultancy Total approved Expenditure Future project fee 2009-10 expenditure (excluding GST) (excluding GST) (excluding GST) Start date End date ($) ($) ($) AMC Bastion Point, Mallacoota – . 14/10/09 03/05/10 $115,018 $113,200 $1,818 Search Ltd Full Safety Audit

Information Security Program – KPMG 30/03/10 30/06/10 $105,759 $0 $105,759 Department of Transport

Details of consultancies under $100,000 In the 2009-10 financial year DOT undertook a further four consultancies (where the total fees payable to each consultant . was less than $100,000). All figures are excluding GST for a total of $152,525.

Major Publications

Transport Corporate »» The Victorian Transport Plan »» Department of Transport Report Card 2009 Annual Report 2008-09 »» Victorian Cycling Strategy Report Card »» Port Futures – New Priorities and Directions for Victoria’s Ports System »» Track record – issues 39, 40, 41, 42 »» Marine Safety Victoria MUARC Report 2008-09

191 Department of Transport Annual Report 2009-10 Other available information

The Directions of the Minister for »» Details of publications produced by »» Details of assessments and Finance, pursuant to the Financial DOT and where the publications can measures undertaken to improve Management Act 1994 require a range be obtained the occupational health and safety of information to be prepared in of DOT employees »» Details of changes in prices, fees, relation to the financial year. charges, rates and levies charged »A» general statement on industrial This material is itemised below and, by DOT relations within DOT and details of time lost through industrial where not published in this report, »» Details of major external reviews accidents and disputes is retained by the Accountable carried out on DOT Officer and can be made available to »A» list of major committees »» Details of major research and Ministers, Members of Parliament sponsored by DOT, the purpose. development activities undertaken and the public on request, subject of each committee and the. by DOT to the limitations of the Freedom of extent to which the purpose . Information Act 1982: »» Details of overseas visits has been achieved »A» statement that declarations. undertaken by DOT, including a Requests for information should. of pecuniary interests have been summary of the objectives and be directed to: duly completed by all relevant. outcomes of each visit DOT officers »» Details of major promotional, . James Lavery Executive Director, DOT Legal. »» Details of shares held by senior public relations and marketing General Counsel. DOT officers as nominees or held activities undertaken by DOT to Department of Transport. beneficially in a statutory authority develop community awareness of Level 12, 121 Exhibition Street. or subsidiary DOT and the services it provides Melbourne VIC Australia 3000

192 DOT contact information

Department of Transport 121 Exhibition Street. Melbourne. Victoria Australia 3000

Internet: www.transport.vic.gov.au

Telephone: (03) 9655 6666. International: +61 3 9655 6666

Facsimile: (03) 9095 4096. International: +61 9095 4096

Postal address PO Box 2797. Melbourne. Victoria Australia 3001

193 Department of Transport Annual Report 2009-10 Disclosure Index Disclosure Index

The Annual Report of the Department of Transport is prepared in accordance with all relevant Victorian legislation. 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 – FRD GUIDANCE

Charter and purpose FRD 22B Manner of establishment and the relevant Ministers 7-8, 129 FRD 22B Objectives, functions, powers and duties 5-10, 79-80 FRD 22B Nature and range of services provided 7-10

Management and structure FRD 22B Organisational structure 9-12

Financial and other information FRD 8A Budget portfolio outcomes 144-151 FRD 10 Disclosure index 195-196 FRD 12A Disclosure of major contracts 190 FRD 15B Executive officer disclosures 130, 136-137 FRD 22B, SD 4.2(k) Operational and budgetary objectives and performance against objectives 3-4, 14-49, 152-176 FRD 22B Employment and conduct principles 138-141 FRD 22B Occupational health and safety policy 138-140 FRD 22B Summary of the financial results for the year 13 FRD 22B Significant changes in financial position during the year 13 FRD 22B Major changes or factors affecting performance 13 FRD 22B Subsequent events 131 FRD 22B Application and operation of Freedom of Information Act 1982 187 FRD 22B Compliance with building and maintenance provisions of Building Act 1993 190 FRD 22B Statement of National Competition Policy 189 FRD 22B Application and operation of the Whistleblowers Protection Act 2001 187 FRD 22B Details of consultancies over $100,000 191 FRD 22B Details of consultancies under $100,000 191 FRD 22B Statement of availability of other information 192 FRD 24C Reporting of office-based environmental impacts 178-183 FRD 25 Victorian Industry Participation Policy disclosures 188 FDR 29 Workforce data disclosures 136-137 SD 4.5.5 Risk management compliance attestation 190 SD 4.2(g) General information requirements 191-192 SD 4.2(j) Sign-off requirements 57

195 Department of Transport Annual Report 2009-10 Legislation Requirement Page reference

FINANCIAL REPORT

Financial statements required under Part 7 of the FMA SD4.2(a) Statement of changes in equity 62-63 SD4.2(b) Operating statement 60 SD4.2(b) Balance sheet 61 SD4.2(b) Cash flow statement 64

Other requirements under Standing Directions 4.2 SD4.2(c) Compliance with Australian accounting standards and other authoritative pronouncements 66-78 SD4.2(c) Compliance with Ministerial Directions 66 SD4.2(d) Rounding of amounts 76 SD4.2(c) Accountable officer’s declaration 57 SD4.2(f) Compliance with Model Financial Report N/A

Other disclosures as required by FRD’s in notes to the financial statements FRD 9A Departmental disclosure of administered assets and liabilities 122-127 FRD 13 Disclosure of parliamentary appropriations 86 FRD 21A Responsible person and executive officer disclosures 129-130 FRD 103D Non-current physical assets 92-96 FRD 106 Impairment of assets 71, 73 FRD 109 Intangible assets 97-98 FRD 110 Cash flow statements 116-117 FRD 112A Defined benefit superannuation obligations 115 FRD 114A Financial instruments 103-110 FRD 119 Contributions by owners 62-63, 76

L egiSLATION Freedom of Information Act 1982 187 Building Act 1993 190 Audit Act 1994 58-59 Financial Management Act 1994 66 Whistleblowers Protection Act 2001 187 Victorian Industry Participation Policy Act 2003 188

196 197 Department of Transport Annual Report 2009-10 Published by Department of Transport 121 Exhibition Street, Melbourne 3000 www.transport.vic.gov.au © State Government of Victoria 2010 This publication is copyright. No part may be reproduced by any process except in accordance with the Provisions of the Copyright Act 1968. Authorised by the Victorian Government, 121 Exhibition Street, Melbourne ISSN 1441-4805 Printed by Impact Digital, Unit 3-4, 306 Albert St, Brunswick VIC 3056 If you would like to receive this publication in an accessible format, such as large print or audio please telephone Public Affairs Branch on 9655 6000. Printed on Impact 100% Recycled paper.

Department of Transport Department Report 2009-10Annual

DOT5033/10 Department of Transport Annual Report 2009-10 www.transport.vic.gov.au