NORFOLK ISLAND ANNUAL REPORT

2009 - 2010

Period: 1 July 2009 to 30 June 2010

CONTENTS TWELFTH NORFOLK ISLAND LEGISLATIVE BIRTHS , DEATHS & MARRIAGES ...... 46 ASSEMBLY ...... 5 LAND TITLES ...... 46 THIRTEENTH NORFOLK ISLAND MOTOR VEHICLE REGISTRATION ...... 47 LEGISLATIVE ASSEMBLY ...... 6 MISCELLANEOUS REGISTERS ...... 47 ADMINISTRATION OF NORFOLK ISLAND COMPANIES & WELFARE SERVICES ...... 47 ORGANISATION STRUCTURE...... 7 NORFOLK ISLAND CLIMATE...... 8 COMPANIES OFFICE ...... 48 STATUTORY BODIES...... 11 SOCIAL SERVICES ...... 49 NORFOLK ISLAND HOSPITAL ENTERPRISE ...... 11 RETAIL PRICE INDEX ...... 50 NORFOLK ISLAND GOVERNMENT TOURIST HEALTHCARE ...... 51 BUREAU ...... 14 EMPLOYMENT & WORKERS COMPENSATION .. 52 NORFOLK ISLAND GAMING AUTHORITY ...... 19 TOURISM ACCOMMODATION...... 52 STATUTORY BOARDS & COMMITTEES...... 20 NORFOLK ISLAND MUSEUM ...... 55 ADMINISTRATIVE REVIEW TRIBUNAL ...... 20 PUBLIC LIBRARY ...... 56 EMPLOYMENT CONCILIATION BOARD ...... 20 NORFOLK ISLAND POST OFFICE ...... 56 EMPLOYMENT TRIBUNAL ...... 20 PHILATELIC BUREAU ...... 57 HEALTHCARE CLAIMS COMMITTEE ...... 20 NORFOLK ISLAND LIQUOR BOND ...... 57 IMMIGRATION COMMITTEE...... 20 NORFOLK ISLAND CENTRAL SCHOOL ...... 58 LEGAL AID ADVISORY COMMITTEE ...... 21 ENVIRONMENT & INFRASTRUCTURE ...... 62 LIQUOR LICENSING BOARD ...... 21 PUBLIC WORKS ...... 62 MENTAL HEALTH TRIBUNAL ...... 21 MECHANICAL SECTION ...... 62 MUSEUM TRUST ...... 21 BUILDING MAINTENANCE SECTION ...... 62 NORFOLK ISLAND CULTURAL HERITAGE PAINTING SECTION ...... 63 COMMITTEE ...... 22 GROUNDS & PUBLIC PLACES SECTION ..... 63 PLANNING & ENVIRONMENT BOARD ...... 23 ROADS SECTION ...... 63 PUBLIC SECTOR REMUNERATION TRIBUNAL .. 23 ADMINISTRATION STORE ...... 64 PUBLIC SERVICE BOARD ...... 23 LIGHTERAGE ...... 65 SOCIAL SERVICES BOARD ...... 24 LAND USE & ENVIRONMENT ...... 65 CHIEF EXECUTIVE OFFICER...... 26 ENVIRONMENT ...... 67 HUMAN RESOURCES ...... 26 HEALTH , BUILDING & QUARANTINE ...... 69 LEGAL SERVICES UNIT ...... 26 PLANNING ...... 70 INTERNAL AUDIT ...... 28 WASTE MANAGEMENT SERVICES ...... 71 NORFOLK ISLAND POLICE ...... 28 RESERVES AND FORESTRY SERVICES ...... 73 KINGSTON AND ARTHUR ’S VALE HISTORIC NORFOLK ISLAND AIRPORT ...... 73 AREA (KAVHA ) ...... 32 NORFOLK TELECOM ...... 74 KAVHA MANAGEMENT BOARD ...... 33 BROADCASTING SERVICE ...... 76 GST OFFICE ...... 34 NORFOLK ISLAND ELECTRICITY ...... 76 NORFOLK AIR ...... 37 NORFOLK ENERGY ...... 77 CORPORATE & COMMUNITY SERVICES.....39 NORFOLK ISLAND FIRE SERVICE & EMERGENCY RISK MANAGEMENT ...... 39 MANAGEMENT ...... 77 COMPLAINTS HANDLING ...... 39 INDEPENDENT AUDITOR’S REPORT...... 80 OCCUPATIONAL HEALTH & SAFETY ...... 40 SUMMARY STATEMENT OF FINANCE UNIT ...... 40 COMPREHENSIVE INCOME...... 82 INFORMATION TECHNOLOGY ...... 41 SUMMARY STATEMENT OF CHANGES IN PUBLIC FUNDS ...... 83 RECORDS MANAGEMENT ...... 42 SUMMARY BALANCE SHEET ...... 84 NORFOLK ISLAND CUSTOMS ...... 42 SUMMARY CASH FLOW STATEMENT ...... 85 IMMIGRATION ...... 43 REGISTRY OFFICE ...... 45 SUPREME COURT ...... 45 COURT OF PETTY SESSIONS ...... 45 CORONER ’S COURT ...... 46

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THE ADMINISTRATION OF NORFOLK ISLAND

TELEPHONE: 6723 22001 CHIEF EXECUTIVE OFFICER FACSIMILE: 6723 23177 ADMINISTRATION OFFICES KINGSTON NORFOLK ISLAND 2899

Tuesday 28 June 2011

The Hon. David E. Buffett, MLA Chief Minister Norfolk Island Legislative Assembly Old Military Barracks Kingston NORFOLK ISLAND 2899

Dear Chief Minister,

Please find enclosed the 2009/2010 Annual report of the Administration of Norfolk Island.

The downturn in the island’s tourism industry that was evident in the 2008/2009 financial year worsened, and visitor arrivals declined by 11% on the previous year resulting in 26,339 arrivals. This represents 26% less visitation in two years.

The reduced visitation had a direct impact on Administration revenues which declined by $2.680 mil between years. Expenditure was also curtailed by $3.046 mil. The ongoing losses being incurred by the operation of Norfolk Air ($3.65 mil) having the largest effect on public finances.

The policy of maintaining both public sector employment levels and services provided by the Government was followed throughout the year. The freeze on discretionary spending that was introduced on 6 May 2009 was maintained throughout the year in an effort to monitor cash levels.

The report has been prepared consistent with the requirements of the Public Sector Management Act 2000 and the Public Moneys Act 1979 . It has been delayed in being prepared due to difficulties in completing the financial audit for the year.

- 3 - These difficulties arising from severe financial problems the Government is facing requiring it to seek financial support from the Australian Government. This uncertainty in funding has created difficulty in providing audit on the assumption of going concern , this being a requirement of International Financial Reporting Standards (IFRS) the basis on which the financial reports have been prepared.

Within this tight economic climate the staff of the Administration have responded well to the financial constraints and through their efforts it was possible to reduce the expenditure in line with reduced income.

Despite operating through a difficult year, the Administration and Territory Authorities have operated well and the efforts of the individual staff and managers in enabling this to be achieved need to be acknowledged in achieving these results.

The report is provided to you for tabling in the Legislative Assembly and for public consideration.

George Plant Chief Executive Officer

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TWELFTH NORFOLK ISLAND LEGISLATIVE ASSEMBLY (March 2007 to March 2010)

LISLE D. SNELL Speaker TIMOTHY J. SHERIDAN Deputy Speaker

Ian R.M. Anderson Brendan A. Christian Neville C. Christian Geoffrey R. Gardner Stephanie V. Jack Christopher A.C. Magri Andre N. Nobbs

EXECUTIVE MEMBERS AND THEIR PORTFOLIOS

ANDRE N . NOBBS NEVILLE C . CHRISTIAN GEOFFREY R . GARDNER STEPHANIE V . JACK CHRISTOPHER A . C . MAGRI

Chief Minister Minister for Finance Minister for Tourism & Health Minister for the Environment, Minister for Commerce & Education & Social Welfare Industry

Intergovernmental Business Public Monies: Tourism Environment: Commerce and Industry Self Government - Administration Assets Health: - Environmental Health Fishing Strategic Planning - Fees and Charges - Hospital Enterprise - Land Management Superannuation Public Service/Annual Report - Revenue Raising - Healthcare Land and Buildings: Industrial Relations Immigration - Economic Policy Gaming - Regulatory Administration Civil Works: Workers Compensation - GST Sport and Recreation Education - Roads Employment Government Business Enterprises: Police Social Welfare Industrial Initiatives Licensing - Electricity Legal Matters: Public Health Economic Policy Culture and History - Telecommunications - Courts Agriculture and Horticulture Transport New Technology Assessment (Broadcasting) - Legal Aid Quarry - Shipping - Lighterage - Tribunals Waste Management Liquor Bond - Airport - Suits for and against the Parks & Forestry Postal/Philatelic Airline Administration Quarantine Customs National Park & Botanic Gardens Retail Price Index Museums Benefit Adjustment Factor KAVHA Emergency Services - Firearms - Explosives - Fire Protection & Control Disaster Management

20 October 2008

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THIRTEENTH NORFOLK ISLAND LEGISLATIVE ASSEMBLY (From March 2010)

ROBIN ELEANOR ADAMS Speaker LISLE DENIS SNELL Deputy Speaker

Craig M. Anderson David E. Buffett Rhonda E. Griffith Michael W. King Andre N. Nobbs Timothy J. Sheridan Melissa Ward

EXECUTIVE MEMBERS AND THEIR PORTFOLIOS

CHIEF MINISTER MINISTER FOR FINANCE AND THE MINISTER FOR TOURISM , INDUSTRY AND MINISTER FOR COMMUNITY SERVICES ATTORNEY-GENERAL DEVELOPMENT

David Buffett Craig M. Anderson Andre N. Nobbs Timothy J. Sheridan

Head of Government Treasury Tourism Social Welfare Self-government Budget Commerce and Industry - Social Services Intergovernmental Relations Public Monies Economic Development - Superannuation Strategic Planning Economic Policy Gaming Health Public Service GST Electricity - Hospital Enterprise Culture, Heritage and Traditions Retail Price Index Transportation - Healthcare Museums Benefit Adjustment Factor - Airline - Public Health KAVHA and Cemetery Fees and Charges - Airport Environment Education Justice - Lighterage - Land & Buildings Police - Harbour - Parks & Forestry Licensing - Shipping - National Park and Botanic Gardens Liquor Bond Primary Industry - Waste Management Postal/Philatelic - Agriculture & Horticulture - Stock and Noxious Weeds Customs - Domestic Animals - Quarrying Immigration - Fisheries - Slaughtering Communications and Technology - Pounds - SPIN Emergency Services & Disaster Management - Norfolk Telecom Sport & Recreation New Technology Assessment Civil Works - Roads - Road Traffic Employment - Industrial Relations - Workers Compensation

28 June 2010

- 6 - ADMINISTRATION OF NORFOLK ISLAND ORGANISATION STRUCTURE As At 30 June 2010

Chief Executive Officer

Human Resources Legal Services Unit

Internal Audit Police

KAVHA GST Office

Norfolk Air Policy & Projects Office

Executiv e Director Executive Director Environment /Infrastructure Corporate/Community Services

Finance Information Customs & Community Business School Public Land Use & Airport Telecom Electricity Emergency Technology Immigration Services Services Works Environment Services

Roads, Building Environment Telecom Electricity Fire Services Accounts Info Tech Customs Registry Post Office Norfolk Island Maintenance, Airport Central School Grounds

Mechanical Health, Building Broadcasting Mechanical Payroll Records Immigration Court Philatelic Quarantine & Incs A.R.T. Water Assurance

Stores Planning Gaming Norfolk Companies Liquor Energy Bond

Social Waste Management Services Lighterage ** Reserves & Healthcare & Forestry Workers Compensation Stock Health & Tourism Animal Accommodation Registration

Fisheries Museums

Library

**Reports direct to Minister

- 7 - NORFOLK ISLAND CLIMATE Norfolk Island is characterised by a best rains are usually preceded with pleasant maritime climate. Daily and winds from the northern quarter, before annual temperature ranges are small, winds turn to the south or southwest. particularly compared with the Tropical cyclones generally approach continental climate of the Australian from the north on a track directed to the mainland. Humidity is generally high, southwest. They are most frequent in although it can occasionally drop to the early months of the year. Mid reasonably low levels when winds turn latitude cyclones move in from the southerly. A belt of high pressure Australian continent or southwest systems that move north and south over Tasman Sea. These depressions affect the Island annually generally drive the the Island mostly from February to climate of the Island. The majority of August. The last quarter of the year is cold fronts affect the Island during generally the least affected by these winter. influences. The average maximum temperatures Fog is often reported during periods of range from around 24 °C in January and persistent drizzle or rain, due mainly to February, to 18º C in the winter months topography. Sea fog and mist can of July and August. The daily range of occur at times but mainly during the temperature is generally about 6ºC late part and early part of the year and throughout the whole year. reduces visibility significantly. Rainfall is generally greatest during the Moderate seas are a feature of all months from March to August, with seasons at Norfolk Island, tending to monthly averages over 100mm. slight during the summer months. September to February monthly Rough to high seas accompany rainfalls are on average less than cyclonic disturbances and those periods 100mm. The annual mean rainfall is of strong southwesterly winds are 1294mm. associated with the passage of cold Prevailing winds show a general swing fronts. Thunderstorms are most from directions between north and prevalent during the winter and spring southwest in summer to the southerly but are not very common. quarter in winter and early spring. The Conditions for last 12 months to June wind shift from summer to winter 2010 occurs in a clockwise direction, and the Norfolk Island’s annual rainfall to the return to summer conditions is anti- end of June 2010 was a very low clockwise. Westerly winds also occur 714.2mm, 580mm below the long-term from June to October. February and annual average (LTA) of 1294mm. March are the windiest months and October 2009 until March 2010 was a August to November generally the very dry period with only 120mm of calmest. The Island landmass affects rainfall – 408mm in deficit from the winds locally, with eddies and normal average for the period of turbulence experienced due to the 528mm. effects of Mt Pitt and Mt Bates. The Temperatures were slightly warmer wind often drops after sunset with than normal throughout the whole year. lighter conditions until after sunrise. February 2010 was the warmest month This lull occurs mainly in the spring which is normal, whilst July 2009 was and summer and on clear nights. The the coldest month. - 8 - Daily sunshine averaged 7.6 hours per Up to date weather information, day for the year (12% higher than the forecasts and data can be accessed from long-term average of 6.8 hours). the Internet: December 2009 and January 2010 were Home Page: very sunny months – 10.6 and 10.1 http://www.bom.gov.au/index.shtml hours average daily sunshine versus the Forecast: LTA of 7.8 and 7.5 hours respectively. http://www.bom.gov.au/products/IDN1 Maximum monthly wind gusts were 0008.shtml typically 35-49 knots. The highest Statistics: wind gust occurred on 13 July 2009 http://www.bom.gov.au/climate/dwo/I with a gust recorded at 49 knots from DCJDW0208.shtml the Southwest, accompanying the passage of a nearby low depression.

- 9 - Norfolk Island Meteorological Office Statistics July 2009 to June 2010

TEMPERATURE RAINFALL SUNSHINE Mean Actual Mean Actual Mean Actual Mean Actual Daily Daily Daily Daily Monthly Rainfall Daily Mean Maxima Maxima Minima Minima Rainfall (mm) Sunshine Sunshine (°C) (°C) (°C) (°C) (mm) (hrs) (hrs) July 18.3 18.4 13.5 13.7 142.7 134.4 5.8 5.4 August 18.3 18.9 13.2 14.4 126.1 34.8 6.6 6.7 September 19.0 19.2 13.7 15.1 94.3 125.8 7.1 5.8 October 20.2 19.9 14.8 14.6 86.0 30.6 7.4 8.8 November 21.8 21.9 16.1 16.2 73.0 8.2 7.9 8.5 December 23.4 24.6 17.8 18.0 84.5 14.8 7.8 10.6 January 24.5 25.4 19.1 19.2 87.2 13.0 7.5 10.1 February 24.9 25.8 19.6 19.9 95.3 29.8 7.1 8.9 March 24.2 25.0 19.2 19.2 101.7 23.6 6.5 7.8 April 22.7 23.3 17.7 18.3 124.5 94.2 6.5 7.2 May 20.9 21.3 16.1 16.9 132.7 109.0 5.9 6.0 June 19.3 19.1 14.7 15.0 146.0 96.0 5.2 5.4

Yearly 21.5 °C 21.9 °C 16.3 °C 16.7 °C 1294.0mm 714.2mm 6.8 hrs 7.6 hrs Average

- 10 - STATUTORY BODIES NORFOLK ISLAND HOSPITAL including aged care, acute care, ENTERPRISE ancillary and administrative services, The Norfolk Island Hospital Enterprise taking into account an ageing is established under the Norfolk Island population and for provision of services Hospital Act 1985 and is a body to the Island at the current level. The corporate with perpetual succession. Enterprise has received the services of The function of the Enterprise is: Mr Don McQueen a draughtsman who • To control, administer and manage undertook to draw up some draft plans the hospital; pro bono. Mr McQueen submitted • To ensure the efficient and draft plans for review by staff. The effective delivery of health Enterprise has also sought the services services to the Norfolk Island of ‘Architects without Frontiers’ who community; have responded positively to our • To strive to maintain and improve request to provide pro bono the health of persons in the Norfolk architectural services. The hospital Island community; staff have also set up an organisation • To plan for the long term called ‘Hettae Ucklun’ to raise funds development of the delivery of for the new hospital and have already health services to the Norfolk held successful fund raising events. Island community. Staff The Hon Geoff Gardner held the The hospital continues to be fully portfolio of Minister for Tourism & staffed with three doctors and all Health until the election in March nursing, allied health and ancillary 2010. The Hon Tim Sheridan now staff. holds the portfolio as Minister for Mr Shane Laginikoro resigned as Community Services with Physiotherapist to continue his career responsibility for the Enterprise. in Australia and to support his children Norfolk Island Hospital Enterprise in their education. Mr Ryan Kendrick Advisory Board was recruited to replace Mr Laginikoro. The current Advisory Board consists of Education continues to be a priority for the following members: staff. In-service education has been • Mrs Val Martinez (Chairperson) provided by several visiting specialists. • Mrs Candice Snell Several staff members continue to undertake external studies to increase • Mr Shane McCoy their skills and several staff have • Mr David McCowan (Director) attended conferences and courses in Proposed Hospital Redevelopment both Australia and New Zealand. During the 2008/2009 year, conceptual In an effort to encourage young people plans for the redevelopment of a new on Norfolk Island to take up careers in hospital were drawn up and submitted the healthcare field, the Enterprise is to the staff of the Norfolk Island offering scholarships to students to Hospital Enterprise for comment and undertake undergraduate studies suggestions. These comments and leading to health qualifications. A suggestions led to the compilation of a scholarship has been awarded to list of requirements for the Hayden Wilson to undertake his development of a new 30 bed hospital - 11 - nursing studies leading to his Bachelor regular visiting Orthodontists. of Nursing qualification. Counseling Aged Care The counseling service continues to be The aged care section of the hospital very busy with the Counselor seeing a continues to provide high quality care significant number of clients. In to the elderly. Activities continue to addition, ‘Awaus Health’ via the increase to provide quality lifestyle to Norfolk Islander provides the the residents of the aged care section. community with valuable health related Exercise activities have been provided information. Plans are in place for the by an Exercise Physiologist Mrs Tania recruitment of a second counselor. Christian to both the residents and Donations members of the community to increase The Norfolk Island Hospital Enterprise range of movement and general fitness. continues to receive a great deal of Volunteers and staff must be support from the community. This commended for their ongoing support assists the Enterprise in dedication to the aged. providing a high quality of care to the Haemodialysis community. In particular the The Haemodialysis Unit continues to Enterprise would like to thank provide a valuable service to the community members and organizations community with three machines able to for the ongoing donations of fruit, provide a service for an increasing vegetables, eggs and other produce. number of residents requiring this The Hospital Auxiliary continues to treatment. This service ensures that work hard to provide the hospital with patients with renal failure are able to items for patient care. Over the past remain on Norfolk Island and receive twelve months the Auxiliary has treatment. donated book bursaries, linen and Hospital Services curtains, light fittings, hospital beds for The Norfolk Island Hospital Enterprise both aged care and acute units and has an ongoing commitment to provide funds for outings for the aged residents. a wide range of services to the Individual community members must community. Increased health also be thanked for their various promotion strategies have been generous donations to the hospital. developed and are in place. The service and other clubs also The Visiting Specialist program provide valuable support to the hospital continues to be a valuable adjunct to through donations, subsidies and the services provided and the labour. Enterprise continues to review these Major Expenditure services. The hospital has also Major expenditure for the 2009/2010 acquired the services of a visiting year consisted of: Dermatologist. • Stereo Microscope Dental • Blood Refrigerator The Dental Clinic continues to provide • Istat Machine the community with extensive dental • Electrical Cabling care with 1,402 patients seen in the • Replacement Motor Vehicle 2009/2010 year. This has provided the • Painting both inside and outside of hospital with ongoing dental services. hospital Orthodontic services continue with our • Renovations to private wards - 12 - Performance against Budget, approximately 90% have payment Strategic and Business Plan agreements in place. Overall debtors is The Norfolk Island Hospital Strategic $399,067.02 when regular payees, Plan 2009-2012 states as its mission including the Administration, that the Enterprise is to “ work in Department of Veterans Affairs, partnership with the Government and Southern Cross and immunisations are community of Norfolk Island to provide taken into account. continuing improvement in the health Subsidisation of childhood of the community and the provision of immunisations and immunisation sustainable, efficient and affordable against cervical cancer for all 12 to 18 health care. Also to promote, improve year old girls continued, with the and care for the health of the immunisation for cervical cancer community including its residents and extended to women up to 26 years. visitors ”. The Enterprise also provided subsidised This service provision must be programs for the reduction of smoking achieved at the most economic cost. in the community. Programs were also The Hospital Enterprise Business Plan continued in the screening of blood 2009/2010 supports the Strategic Plan glucose and cholesterol levels and as by providing strategies to achieve the well as continuing the bowel screening plan on an annual basis. in conjunction with the Rotary Club of The 2009/2010 subsidy of Norfolk Island. $1,285,000.00 and cash flows enabled The Minister for Community Services the Hospital Enterprise to be able to the Hon Tim Sheridan requested the pay all of its creditors within 30 days of Hospital Enterprise to review cancer receipt of invoice. Hospital income statistics on the Island. The Enterprise varied across departments which has identified 49 persons who have reflected in some areas the economic been diagnosed with some form of climate. Income for the year including cancer and are either in remission or the subsidy was $4,423,089.00 against continuing to receive treatment. The the budget of $4,300,900.00 and breakdown is: expenses were $4,547,559.00 including • Breast 17 depreciation of $230,063.24 giving an • Colon 5 actual result of $105,593.00. These • Prostate 9 funds were able to be expended on • Skin 3 urgently required items that had not • Bladder 2 been included in the 2009/2010 budget, • Myeloma/Lymphoma 1 including a replacement motor vehicle • Cervix 1 for a medical officer, a stereo • Pancreas 2 microscope and painting of the • Lung 1 hospital. • The follow up of Debtors remains a Uterus 1 • priority with all debtors over 60 days Spine 1 • being sent reminders and those over 90 Ear 1 days who have not made contact with • Testes 2 the Enterprise being summonsed • Thyroid 1 through the Court of Petty Sessions. 90 day debtors is $275,645.65 of which

- 13 - Since February 2007 there have been for their ongoing support and assistance 17 deaths which can be attributed to to the hospital over the year. Without cancer of some kind. these volunteer groups, necessary Volunteer Organisations services to the community could only The Norfolk Island Hospital Enterprise be provided with great difficulty and would like to thank the St Johns cost. Ambulance, Red Cross and White Oaks Hospital Statistics 2007 2008 2009 2010 Outpatients 9,818 9,252 9,019 8,380 Total Visitors 525 638 512 435 Theatre Minor 24 28 47 5 Theatre Major 94 110 82 91 Pathology Patients 2,798 2,639 2,650 3,005 Pathology Tests 8,112 7,810 8,088 10,341 X-ray Patients 658 623 618 583 X-rays 2,791 1,874 1,812 1,622 Ultrasounds 136 109 106 86 Pharmacy 16,634 16,168 14,658 13,992 Off Shore Referrals 186 783 224 225 Births 18 18 13 22 Deaths 9 18 14 16 Daily Bed Average 11.41 9.89 11.57 11.78 Immunisations 153 172 306 190 Visiting Specialists: Patients 412 228 294 278 Physiotherapy 2,232 2,636 2,767 2,986

NORFOLK ISLAND GOVERNMENT • More substantially contribute to TOURIST BUREAU the economy of the community; The Norfolk Island Government • Ensure industry profitability and Tourist Bureau (Bureau) is regulated by the capacity to invest in quality the Norfolk Island Government Tourist improvement and professional Bureau Act 1980 . The Bureau is a development; body corporate with perpetual • Exceed visitor expectations and succession and within the Five Year enhance the Island’s appeal; and Tourism Plan 2007-2012. The • Encourage wide community Bureau’s vision is to: support and involvement. Position Norfolk Island as a preferred Board Members during 2009/2010 holiday destination in the Pacific region were: for high yield visitors by providing July 2009-April 2010 high quality visitor experiences which • Wallace Beadman, Chairman will:- • Morgan Evans, Deputy Chairman • Protect and promote the unique, • Marion Janet Christian natural, social and cultural • Matthew Charles Christian-Bailey environment; • Nadia Cuthbertson • Ian Anderson, MLA

- 14 - From April 2010 Expenditure • Morgan Evans, Chairman Total expenditure of $1,785,974 left an • Nadia Cuthbertson operating surplus of $145,825. • David Sanders Visitor Arrivals • David Porter Norfolk Island inbound passenger • Lisle Snell numbers maintained a downward trend Bureau Finance during 2009/2010 with the impact of Government Budget Appropriation the global financial crisis having a The Bureau received a total strategic effect on the traditional appropriation of funding from the seniors markets that Norfolk Island had Norfolk Island Government of relied on for so many years. Combined $1,758,000 for the 2009/2010 financial with a growing lack of destination year, combined with a revenue target profile and a weakened trade budget of $173,800, making a total distribution awareness of Norfolk budget of $1,931,800. The revenue Island, it has created a disappointing budget of $173,800 was exceeded with year in visitor arrivals, the lowest in a total of $241,805.20 in revenue recent history receiving a total of generated through commissions 26,339 visitors in 2009/2010, a 11% received from sales of tours and decrease over the previous 12 months. accommodation, events, retail sales and miscellaneous income. Visitors by Source Markets

- 15 - All Australian source markets produced however Queensland’s reduction was a reduction from the previous year; only 1.1% from the year 2008/2009.

Visitors by Month

Visitor Long Term Trend

- 16 - Bed Nights Inbound Visitors x Average Stay per Month per Year 2003/2004 to 2009/2010

Bureau Resources In November 2009 the General The Bureau which includes full Manager Tourism resigned and the accountability and oversight of the Chairman, Wallace Beadman acted as Visitor Information Centre, had a full General Manager Tourism as well as time staff of six in 2009/2010 and one holding the role of Chairman until contracted part-time position providing January 2010. A new General Manager accounting services. Tourism was appointed and The Bureau’s staffing consisted of the commenced in early January 2010 but following positions: resigned in April 2010. • General Manager Tourism; In May 2010 General Manager • Marketing Manager (until January Tourism, Mr W. Emery commenced his 2010, position not replaced); appointment. • Development Manager (extended Visitors Information Centre leave through illness from April The Visitors Information Centre (VIC) 2010 to August 2010); on Taylors Road is open 7 days a week • Marketing Coordinator; to service the needs of visitors to Norfolk Island. It provides Norfolk • Visitor Information Centre (VIC) Island Tourism’s direct interface with Supervisor; visitors and has the key functions of • VIC Tourism Sales Consultant; • providing information and advice to Part-time contracted accounts visitors and prospective visitors, officer. booking tours and attractions for The Visitor Information Centre is visitors, providing information on supplemented by four casual/part-time shopping and dining, and a small scale staff. operation of retail sales of souvenirs and local crafts.

- 17 - Other functions performed by the VIC been developed in line with the include meeting and greeting destination branding campaign passengers off all inbound flights, launched in October 2009. collating and recording visitor surveys, New Zealand and assisting with visits from travel A reduced budget was allocated to the agents and media. New Zealand market for the 2009/2010 Destination Marketing financial year due to the emphasis on In 2009/2010 a total of $1,220,500 was the new campaign launch in Australia spent on marketing activity. In July during October 2009. Air New 2009 the Bureau tendered for the Zealand continued with the one flight services of an advertising agency. A per week schedule to Norfolk Island. three year contract was signed with the Trade Representation New Zealand Sydney based company DDI. The Bureau engaged Mike Hogan & In October 2009 a new branding Associates based in Auckland New campaign “The World of Norfolk” was Zealand to act as their representative to launched to reposition the Island. Early the New Zealand trade and distribution 2010 saw the launch of a new look system. destination brochure by Norfolk Island Cruise Ship Sector Tourism. The brochure’s market The months of March and April 2010 acceptance by most trade agents and saw Norfolk Island visited by P & O’s wholesalers was well received. Pacific Sun. Day visitation to the Public Relations Island introduced a new market and In October 2009 a public relations economic generation to the retail and company, Public City, was engaged. tourist sectors. A further two visits by Public City assists the Bureau in the Pacific Sun were scheduled for the maximizing media opportunities to financial year 2009/2010 however due profile the destination through print and to inclement weather and the electronic media relationships. requirement to use tender vessels for Marketing Partnership Program ship to shore passenger transfers, the The Marketing Partnership Program safety of passengers and crew required undertaken in 2008/2009 between the Pacific Sun to cancel Norfolk Island Tourism and Norfolk disembarkation on the two visits. Air, with selected Australian Other Key Activities wholesalers, was continued through • Retirement and Lifestyle Expo into 2009/2010. Management of the attended in Brisbane, Sydney and program was transferred to Norfolk Air Melbourne. in February 2010. • AIME Trade Show attended – Website targeting the conference market. The Norfolk Island website has become • Numerous travel agent a key part of the marketing strategy familiarization visits were given the global reach of the internet conducted. and the increasing propensity of our • Jazz in the Pines was run by the target market to use the internet to Bureau in 2009. research and book travel. The Norfolk • Conduct of second Norfolk Island Island website Tourism Awards. www.theworldofnorfolk.com.au and the www.theworldofnorfolk.co.nz have

- 18 - NORFOLK ISLAND GAMING In addition to the role within the AUTHORITY Gaming Authority, the Director The Norfolk Island Gaming Authority represents the jurisdiction as an officer is an independent statutory body that at Ministerial Council on Gambling operates in accordance with the meetings and working groups. This Gaming Supervision Act 1998 . The role remained busy during the year principal function of the Authority is to with activity generated by the assess applications and issue Commonwealth Government and issues Interactive Home Gaming Licences, surrounding the Productivity Online Lottery Licences and Commission’s terms of reference. Bookmaking Licences. The Authority The Authority approved 3 new licences is empowered to implement and during the year. 2 were Bookmakers enforce a strict regulatory regime to Licences and 1 for on-line lotteries. 1 provide high standards of gaming further application was received for administration and control. consideration in the following year. The Authority insists on the highest The current Licensees contribute levels of integrity and security for all substantially to the government gaming operations that emanate from finances through the payment of the Island by overseeing the proper turnover duty, with net revenue operation of gaming systems and received in the financial year to 30 June structures, and supervising and 2010 being $1,250,000 - an increase of inspecting all licensed gaming $310,500 (33%) on the previous year. operations under the prescribed Acts - Detailed information by way of the the Gaming Supervision Act 1998 , the “Applicants Package of Documents” Gaming Act 1998 and the Bookmakers are distributed to interested parties via and Betting Exchange Act 1998 . email and the internet and where Operations possible by direct presentation to those The Norfolk Island Gaming Authority parties specialising in gaming related is gaining momentum as a quality fields. Pertinent information relating to jurisdiction for companies wishing to the Norfolk Island Gaming Authority is obtain licences for on-line gaming incorporated into the Applicants activities. Package of Documents and the The Authority membership comprises: Authority’s website: • Mr Ronald Irvine, Presiding www.gamingauthority.nlk.nf as well as Member internet gambling publications around • Mr A.J. Messner, OAM, Member the world that publicise internet gaming • Mr Rees Walden, Member jurisdictions. • The Authority’s Director is Mr Rod McAlpine and the Secretary is Mrs Joanne Adams

- 19 - STATUTORY BOARDS & COMMITTEES ADMINISTRATIVE REVIEW TRIBUNAL EMPLOYMENT TRIBUNAL The Administrative Review Tribunal The Employment Act 1988 provides for Act 1996 provides for the review of minimum wages and working administrative decisions. conditions, compensation for work Members of the Tribunal are: related accidents, establishes safe • President: Mr Ron Cahill working practices, procedures for • Deputy President: Mr Michael conciliation, adjudication and review Zande. and other related purposes. • Magistrates appointed under the Members of the Employment Tribunal Court of Petty Sessions Act 1960 are the Magistrates of the Court of are also members of the Tribunal. Petty Sessions. There were 2 applications for review There were no sittings of the Tribunal filed during the year and there were 2 during the year. matters that were dealt with in HEALTHCARE CLAIMS COMMITTEE telephone directions by the President. The Healthcare Claims Committee is EMPLOYMENT CONCILIATION BOARD established under the Healthcare Act Under the Employment Act 1988 the 1989 . The committee determines the Employment Conciliation Board assists entitlements of a person to free medical in the resolution of disputes between services and assesses applications made employees and employers referred to under the Act for reimbursement of them by the Norfolk Island costs incurred by an applicant. Administration’s Employment Liaison There was 1 claim made this financial Officer. Whilst the Board can year and it was not upheld by the negotiate to resolve the differences committee. expressed by the two parties, their Current members of the Healthcare powers are limited. Claims Committee are: The Board has continued to offer • The Director of the Norfolk Island informal assistance and advice without Hospital Enterprise involving formal processes where • The executive member with people have a simple query about some responsibility for Health aspect of an employment situation that • A member of the Legislative needs clarification. Assembly (chosen by resolution of The Board dealt with 3 formal the Legislative Assembly). complaints during the year. 2 were IMMIGRATION COMMITTEE resolved and 1 was a matter involving Immigration staff provide support to workers compensation which is outside the Immigration Committee, a statutory the Board’s powers. body appointed under the Immigration Members of the Employment Act 1980 . The Act requires a Conciliation Board are: committee of not less than 3 and no • Mr Dick Massicks (Chairman) more than 5 members, at least 1 and not • Mr Rick Kleiner more than 2 of whom are members of • Ms Debbie Simpson the Legislative Assembly. The If a dispute cannot be resolved, those committee is required to furnish reports aggrieved may appeal to the to the executive member as required by Employment Tribunal. sections 19 and 32 of the Immigration Act 1980 along with any other matters - 20 - the executive member refers to it. • Mrs Tosca Quintal (Chairperson) Members of the Immigration • Ms Jo Jenkins Committee are: At the annual sittings held on 10 June • Mr Simon Bigg 2010 the Board dealt with the following • Mrs Lorraine Boudan applications for the period 1 July 2010 • Mrs Jenny Sexton to 30 June 2011: • Mrs Melissa Ward, MLA • General Licence – Hotel 3 • Mr Michael King, MLA • General Licence – Tavern 1 LEGAL AID ADVISORY COMMITTEE • Club Licence Renewals 7 The Legal Aid Advisory Committee is • Restaurant Licence Renewals 16 set up under the Legal Aid Act 1995 • New Restaurant Licence 1 and establishes a committee of 3 • Manufacturer’s Licence 2 members appointed by the executive • Transfer of Licence 2 member. • Appointment of Nominee 4 The executive member refers MENTAL HEALTH TRIBUNAL applications for legal aid to the The Mental Health Tribunal Act 1996 committee. Responsibilities of the provides for the establishment of a committee include making Tribunal to provide treatment, care, recommendations to the executive control and protection for mentally member in relation to financial dysfunctional persons. assistance being provided on Norfolk Members of the Mental Health Island. Tribunal are: Members of the Legal Aid Advisory • Mr Michael Zande (President) Committee are: • Dr John Duke • Mr Mike Hehir (Presiding • Ms Cheryl LeCren Member) Ms LeCren was appointed a member to • Mr Geoff Gardner the Tribunal on 28 July 2009 following • Mrs Robyn Menghetti the retirement of Ms Samantha • Mrs Kim Edward (Secretary) Browne. During the year the committee met on 1 There were 5 sittings of the Tribunal occasion and considered 1 application during the year dealing with one matter which was not granted. Another under review. application was received but the MUSEUM TRUST applicant did not qualify for legal aid The Museum Trust Act 1987 establishes assistance. the Norfolk Island Museum Trust for No legal aid assistance was paid for the the purposes of acquiring, preserving financial year. and displaying – subject to that Act – LIQUOR LICENSING BOARD objects that are of heritage and cultural The Liquor Act 2005 provides for the significance to Norfolk Island, whether promotion and encouragement of for ethnological, archaeological, responsibility in the sale and historical, literary, artistic, scientific or consumption of liquor through the technological reasons. establishment of a scheme of liquor The Trust has responsibility for one of licences and permits. three heritage collections displayed in Members of the Liquor Licensing the Norfolk Island Museums. Board are: Museum Trustees are appointed under

- 21 - the Act by the executive member and a generous donations from residents and Trustee normally holds office for a persons living offshore, of documents, period of 2 years. Trustees are eligible photographs, records and other items to for re-appointment. add to its collections. Members of the Museum Trust during NORFOLK ISLAND CULTURAL 2009/2010 were: HERITAGE COMMITTEE • Mr Archie Bigg The Protection of Moveable Cultural • Mrs Margaret Jowett Heritage Act 1987 protects Norfolk • Mrs Simone James Island’s heritage of moveable cultural • Ms Liz McCoy objects that are of importance to • Mr Ron Nobbs Norfolk Island for ethnological, • Ms Jodie Williams archaeological and historical reasons. Regulations currently control the • Mr Owen Walsh (Chair and movement of: Treasurer) • Ms Anita French is the secretary of the Objects recovered from the wreck Museum Trust. in 1790 at Pitcairn Island of A major focus for the Trust in HMAV Bounty; • 2009/2010 was to progress the Norfolk Objects landed in Norfolk Island Island Oral History project. This on 8 June 1856 and brought from project has involved the organization Pitcairn Island on the vessel and recording of interviews with over Morayshire; • 55 senior members of our community, Objects recovered from or located preserving their memories and in the Kingston & Arthur’s Vale recollections of community life and Historic Area and relating to events on Norfolk Island and, in doing convicts, free settlers, military or so, established an important record for naval personnel associated with the future generations. The Trust is now penal settlement of Norfolk Island focused on indexing and translating before 8 June 1856; these recordings. The Trust also • Objects recovered from ships supported the research and recording of wrecked before 1 January 1938 in 5 new interviews for the Norfolk Island territorial waters within the Central School’s Living Library meaning of the Territorial Waters project. Act 1926 . This year, the Trust acknowledged the The Norfolk Island Cultural Heritage considerable contribution made by the Committee is set up to furnish advice to late Mr Peter Clarke, author of the play the executive member on applications ‘The Trial of the Fifteen’. Mr Clarke, for the removal or export of cultural who died this year, donated his play to objects covered by these regulations. the Museum with all profits from its 4 members are appointed to the Norfolk performance going to the Museum Island Cultural Heritage Committee for Trust to fund special acquisitions and a term of up to 4 years. projects. Mr Clarke’s generous Members of the Norfolk Island Cultural donation provided the Trust with an Heritage Committee are: important source of income, which in • Mr Neil Tavener (Chairperson) turn has provided invaluable support to • Mrs Beryl Evans the Norfolk Island Museums. • Ms Eve Semple The Trust continues to receive • Mrs Rhonda Griffiths - 22 - PLANNING & ENVIRONMENT BOARD met on 16 occasions during the year The Planning & Environment Board is and made recommendations on 32 established under the Norfolk Island development applications; 2 Planning and Environment Board Act modifications of development consent; 2002 . The function of the Board is to 2 applications to vary the Norfolk give advice and make Island Plan; a new Development recommendations to the executive Control Plan for the Airport; and a member on: review of the Norfolk Island Plan. (i) matters referred to the Board by PUBLIC SECTOR REMUNERATION the executive member under TRIBUNAL section 99 of the Planning Act The Public Sector Remuneration 2002 or section 32 of the Heritage Tribunal Act 1992 provides for the Act 2002 ; and establishment of a one-member (ii) the effectiveness or otherwise of Tribunal with power to determine the Planning Act 2002 and other general adjustments to wages payable Acts administered by the executive to public sector employees and the member to achieve the objects of amount or basis of calculation of the those Acts; and general adjustment to be paid. On 28 (iii) any other matters within the May 2010 the Honourable James portfolio of the executive member Burchett dealt with a general wage referred to the Board by the adjustment for the Norfolk Island executive member; and Hospital Enterprise Staff Association (iv) all development applications for on behalf of the nursing staff of the permissible (with consent) use or Norfolk Island Hospital Enterprise by development; and way of Consent Orders. (v) all heritage proposals; and PUBLIC SERVICE BOARD (vi) on any matters referred to the The Public Sector Management Act Board by resolution of the 2000 provides for the establishment of Legislative Assembly related to the Public Service Board of Norfolk planning and environment on Island and gives it three functions as Norfolk Island, or any other per: matter. • Section 18 – Evaluating the Members of the Planning and observance of Public Service Environment Board as at 30 June 2010: principles and employment • Chloe Nicholas (Chair) standards by management and • Brendon Christian employees and providing advice to • Peter Magri the Legislative Assembly on • Steve Ford changes to the organisational Delegate members of the Planning and structure or human resources Environment Board as at 30 June 2010: policy; or to the executive member. • Tim Brown • Part 5 – Sections 58, 59 & 60 – • Peter Arthur Conducting reviews of • Jamie Edward employment selection decisions if Specialist adviser to the Planning and appealed and considering appeals Environment Board as at 30 June 2010: against unfair dismissal or • Eve Semple termination. • Section 65 – Investigating The Planning and Environment Board - 23 - complaints from persons affected weight to be given to the actual by actions which do not comply interview part of the merit selection with the Act. process. The Board has long advocated Provisions under Section 18 of the such changes. Act Membership of the Board During the past year the executive Members of the Public Service Board member referred 2 complaints to the are: Board for investigation that had been • Nadia Lozzi-Cuthbertson outstanding for many months against a (Presiding Member) member of senior management. The • Catherine O’Sullivan (Deputy Board found it difficult to conduct Presiding Member until October extensive investigations because of the 2009) time lapse and the move away from the • Alex Martinez (Deputy Presiding Island of the complainants. It duly Member since October 2009) recommended that no action be taken. • John Hughes (Member until Provisions under Part 5 of the Act December 2009) Under the provisions of this part of the • John Pearson (Deputy Member) Act the Board dealt with 1 merit • Gerri Downie (Employee Member) selection appeal to completion but was • Shane McCoy (Deputy Employee unable to deal with 6 other merit Member until March 2010) selection appeals because senior • Steve Mathews (Deputy Employee management of the Public Service Member since March 2010) raised procedural questions about • Nick Quintal (Deputy Employee which there were diverging legal Member since November 2009). opinions. It should be noted that the The present members of the Board wish procedures being questioned had been to record their appreciation for the in place since the year 2000 when the contributions made by Mrs O’Sullivan act established the Board. The and Messrs Hughes and McCoy to the executive member sought advice on the quite onerous work the Board was matter from the office of the faced with in the course of the past Commonwealth Crown Solicitor and year. there followed a protracted period while new procedures were worked out. SOCIAL SERVICES BOARD The Social Services Board comprises 2 In the one merit selection appeal dealt independent community members and to finality, the Board found in favour of 2 representatives from the Legislative the appellant. Assembly. The 2 independent officers Provisions under Section 65 of the hold a statutory appointment for a Act period of 3 years. The Board dealt with one complaint The functions of the Board are to under this section. consider and make recommendations to The Board notes that, as in conjunction the executive member concerning with the changes in procedures for claims and reviews. dealing with merit selection appeals, Current members of the Social Services the Executive Member is considering Board are: bringing before the Assembly • amendments to the Act incorporating Mr Lisle Snell, MLA (among other matters) changes in the (Chairperson) • Mrs Melissa Ward, MLA - 24 - • Mrs Dale Hogden • The likely cost of any extension of • Mrs Patricia Anderson benefits under the Social Services • Mrs Kim Edward (Secretary) Act 1980 ; In addition to the above functions, the • The priority that should be given to Board has the further function of an extension of benefits; furnishing to the executive member • The operation generally of the reports or recommendations Social Services Act 1980. concerning: During the year the Board met on 10 • Social welfare in Norfolk Island; occasions and granted 16 benefits and health and medical assistance.

- 25 - CHIEF EXECUTIVE OFFICER HUMAN RESOURCES • The IT Section has run a series of The Human Resources Section has training courses in MS Office responsibility for the development and applications for most implementation of human resources Administration staff. This is an policies and procedures. The section is on-going program to build the involved in areas including giving skills of the workforce. advice to senior management on • Twenty-nine employees have employment matters, recruiting, completed CPR training over the planning and processing. It also same period. provides advice to managers and LEGAL SERVICES UNIT employees on terms and conditions as The Legal Services Unit (LSU) well as entitlements, conflict resolution, provides legal and related services to identifying and arranging training the Administrator, executive members, requirements as well as processing and the Norfolk Island Government, the recording all staff entitlements. public service, government business The Human Resources Section carries enterprises, as well as to various out its functions in accordance with the statutory office-holders. Public Sector Management Act 2000 Full staffing of the LSU consists of a and Regulations and the Human Crown Counsel, Deputy Crown Resources Policies and Procedures Counsel, Legal Counsel, Legislative Manual , which is a Determination Counsel (off-shore), Legal Clerk and under the Act. Legal Secretary. During the period Mr There were 6 resignations from within Ron Holdsworth completed his contract the Service during this financial year as Crown Counsel. and 27 formal recruitment processes LSU services include: were undertaken. Six of those • Parliamentary Counsel legislative recruitments were to formalise long drafting services, instructing in standing casual positions. legislative development and As at 30 June 2010 the Public Service provision of general advice and was comprised of the following assistance in law reform; positions: • Secretariat services to the • Full time employees 122 Executive Council of Norfolk • Contract employees 33 Island; • Part time employees 13 • Crown prosecution services before • Vacant positions 33 the Court of Petty Sessions and • Recruiting 4 Supreme Court; • One apprentice will complete his General advisory work to the apprenticeship in motor mechanics as Administrator, executive members, at 31 December 2010. There are the Norfolk Island Government, another two apprentices who will the public service, as well as to complete the second year of their four various statutory office-holders; year courses at the end of 2010 – one as • Advice and advocacy services in a carpenter and another as a mechanic. civil matters; Training has continued this financial • Oversight of the Administration’s year in two main areas: default debt recovery procedures, carriage of defended debt recovery - 26 - matters and local and off-shore Mental Health Tribunal enforcement of default judgments; • LSU acted as counsel assisting in • Advice and advocacy services in ongoing periodic reviews by the review proceedings before the Tribunal under section 37F of the Administrative Review Tribunal; Mental Health Act 1996 regarding • Counsel assisting in proceedings in a person held in New South Wales the Mental Health Tribunal and under a Supreme Court detention Coroner’s Court; order. • Commercial and real property Legislation drafting; • LSU was involved in the • Advice on commercial development of approximately 21 negotiations by government; pieces of legislation during the • Public will service and period under review as well as 2 performance of the statutory Bills currently tabled in the position of Curator of Deceased Legislative Assembly. The LSU Estates (public trustee). also conducted an extensive review Activity During the Year of the status of the Environment Criminal Matters Act 1990 and Public Health Act • LSU lawyers appeared before the 1996 and related pieces of the Court of Petty Sessions in 66 1996 Land Package relating to matters, of these 50 were Police public health. [All Norfolk Island matters and 16 were prosecutions legislation is available on the by other statutory officers. Matters internet at www.info.gov.nf]. ranged from traffic offences to Other offences under Norfolk Island GST Aftermath of McNeill Murder Trial legislation. No criminal • LSU assisted Norfolk Island Police proceedings were conducted in the Force and the Supreme Court with Supreme Court during the period. arrangements for the storage, Civil Matters return or destruction of materials • No civil proceedings were gathered by police during the conducted before the Supreme murder investigation following Court during the period. finalisation of all appeals in the Debt Recovery case. Forensic materials likely to • LSU had carriage in the Court of yield further information as Petty Sessions of debt recovery technology improves in the future enforcement proceedings in 188 were stored. matters against 78 people. Status of Norfolk Island Forensic Approximately $33,100 was patients held in New South Wales • recovered through those LSU undertook ongoing liaison proceedings during the period. with NSW Department of Health Administrative Review Tribunal regarding resolution of the NSW • LSU had carriage of 3 matters status of Norfolk Island forensic relating to applications for review patients held in NSW under a of decisions under the Planning Norfolk Island detention order. Act 2002 . Parole – Norfolk Island Inmates held in New South Wales • Liaison continued with the NSW - 27 - Parole Board to finalise parole • examined workers compensation arrangements and systems for approvals and payments; Norfolk Island prisoners held in • examined welfare benefit NSW prisons under Norfolk payments, BAF index calculation, Island, Commonwealth and NSW HMA payments, bulk billing; laws. • examined philatelic procedures, Standing Committee of Attorneys- accounting, stamp issues, stamp General inventory, destruction of stamps; • As part of Norfolk Island’s • examined post office procedures, observer status, LSU represented Australian money order Norfolk Island at meetings of the settlements; Standing Committee of Attorney’s • examined Stores accounting General (SCAG), to monitor procedures, purchases, petty cash, proposed and ongoing Australia- Stores issues; receipt of goods; fuel wide statutory law reform and oil issues; initiatives. • examined telecom accounting and INTERNAL AUDIT banking procedures, advance Internal Audit is an independent tool of checks, phone-card accounting; management. Each year an annual • examined Finance Branch internal audit program is prepared and expenditure appropriation, submitted to management for approval. expenditure vouchers, payroll and The program is the basis of the audit timesheets, cashier’s receipts and work to be carried out during the ledger postings; period. • examined Liquor Bond purchases, As well as the approved audit work costing and stock control; carried out, the Internal Auditor also • Observed and assisted with annual undertakes special projects and stock-takes where possible. prepares draft procedures for NORFOLK ISLAND POLICE consideration by management. The Norfolk Island Police Force During the past twelve months Internal (NIPF) was established on 14 October Audit has: 1931 through the (Norfolk Island) • assisted in the transition of Police Act 1931 . NIPF is the principle accounting procedures from the law enforcement agency for Norfolk Tourist Bureau to the Norfolk Island, and operates on behalf of the Island Administration; people and government of Norfolk • examined fuel issues from the Island and the Commonwealth of airport fuel depot, fuel pricing and Australia. The NIPF has responsibility cartage costs; for both community policing and • examined retail price index Commonwealth law enforcement as calculations; well as responsibility for critical • examined aircraft manifests and incident coordination, including search import entries; and rescue and is a key partner in • examined staff leave cards, Norfolk Island’s emergency appointments, engagements, management infrastructure. promotions and transfers; The NIPF is also responsible for a • examined GST Office procedures range of statutory obligations, and accounting; responsibilities and conventions, - 28 - including appointment as Sheriff of criminal incidents such as property Norfolk Island, undertaking the role of offences and offences against the bailiff, liquor licensing, custodial person. This is a significant increase operations, regulatory services and a on previous years, as shown on the range of other Commonwealth and graph Total Incidents Reported & territory ex-officio and ‘authorised Response of the Norfolk Island Police officer’ duties. Force . There has also been an increase The Australian Federal Police (AFP) over the whole reporting period with provides 3 officers (1 Sergeant as the number of incidents and response Officer in Charge/Principle Police requirements now consistently over 100 Officer and 2 Senior Constables) on per month. secondment to the NIPF. There has Of specific concern are the number of been a complete rotation of AFP road crashes, particularly involving members through the reporting period. young drivers and drivers under the In addition to AFP seconded members, influence of alcohol. the NIPF is also staffed by 4 locally In all, 43 collisions were reported to engaged Special Constables, 1 being police; however, in reality this figure is full-time and 3 being part time. likely to be higher. Road safety Although the AFP members can continues to be a concern to police, and operate within the territory in their own has seen a joint initiative with the right under the AFP Act 1979 , all community of ‘Road Safety, Our members wear the NIPF uniform as a Community, Our Responsibility’ with conscious measure to enhance the emphasis on all members of the community engagement and positive community being a key message for the ownership of the police by the initiative. community and government. Police carried out the following The current policing arrangement is specific tasks and activities during the built on a 1993 Memorandum of reporting period: Understanding; however a new Service Drivers licence tests 121 Level Agreement has been drafted to Civil summonses served 147 meet the demands of policing a remote st Criminal summonses 24 isolated community in the 21 century. Persons before NI Court of 21 Operational Activity during the Petty Sessions (52 charges) Reporting Period Firearms Licences 105 During the 2009-2010 reporting period (This includes new permits, police attended or responded to 1168 renewal of existing permits, incidents. This included a range of visiting shooters & dealers and activities from community engagement collectors). programs through to the range of

- 29 -

TOTAL INCIDENTS REPORTED & RESPONSE OF THE NORFOLK ISLAND POLICE FORCE (NIPF) 1400

1200

1000

800

Total Jobs

600 Number of Number Incidents/Jobs of

400

200

0 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 Financial Years

INCIDENT RESPONSE BY MONTH - 2009/2010 FINANCIAL YEAR 120

100

80

60 Monthly Totals No No of Incidents

40

20

0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2009/2010 Calendar Months

- 30 -

Community Engagement Programs Outcomes and Planned Performance Police have also worked with other A key element of the NIPF 2010-2015 stakeholders to develop a range of Strategic Plan are the range of Community Engagement Programs performance outcomes and supporting (CEPs), particularly engaging with programs in order to clearly articulate, youth. These include the re- and enable further planning, on the key introduction of Blue Light Discos and deliverables. other linked events and the re- Performance Outcomes establishment of the Duke of The key performance objectives of Edinburgh Award Scheme. To ensure NIPF have been recognised through a effective business continuity, the series of programs, which will be reporting period has also seen the planned, managed and reported on, in establishment of a Blue Light the form of agreed performance Foundation to oversee the continued outcomes, being: staging of blue light events. Both these • Outcome 1: Community Policing and other youth initiatives have been Services; well supported by the community. • Outcome 2: Commonwealth NIPF 2010-2015 Strategic Plan Policing Services As commitment to business planning, • Outcome 3: Critical Incident the NIPF commenced the development Management & Coordination; and, of a Strategic Plan during the reporting • Outcome 4: Statutory period, covering the next five years, Appointments & Regulatory through to 2015. This will enable more Services. focused planning and enable better Supporting Programs reporting on police activities and The identified outcomes will be the operations. result of the programs covering each Key elements include vision and area. mission statements, as well as Accessibility to the community performance outcomes and supporting Police continued to engage with the programs. community through weekly newspaper Vision reports and ‘Island Beat’ on Radio To make Norfolk Island safer and more Norfolk. Work has commenced on a secure in partnership with government NIPF web page and this is anticipated and the community. to be operational by Christmas 2010. Mission New signage in Burnt Pine and better The NIPF mission is to keep the lighting at the Norfolk Island Police community safe and secure in Station have increased the visibility of partnership with government and the police and has received a positive wider community. This will be reaction from the community. Another achieved through the maintenance of initiative has seen the opening of a law and order and the provision of Police Shopfront which is open quality policing services, undertaking Wednesday and Saturday mornings to emergency management and provide greater access to the coordination and by meeting its community and visitors alike. statutory and regulatory duties and obligations.

- 31 - KINGSTON AND ARTHUR ’S VALE KAVHA has been under review by Ms HISTORIC AREA (KAVHA ) Lynden Ayliffe since November 2008. The Kingston and Arthur’s Vale Funding for KAVHA operations is Historic Area (KAVHA) was listed on provided by both governments in the Register of the National Estate in accordance with a cost sharing formula 1980, on the Norfolk Island Heritage in the MOU. The Federal contribution Register in 2003, and on the National this year was $611,481 and the Norfolk Heritage List in 2007. Island contribution was $373,700. The KAVHA is one of the eleven sites in Federal contribution is directed towards the Australian Convict Sites World conservation of restored structures and Heritage nomination that was lodged the Norfolk contribution towards the with UNESCO in January 2008. A day-to-day maintenance of the Historic decision on the nomination is expected Area, while the two governments share in July 2010. the costs of corporate services, The heritage values of the site, cultural landscape works and interpretation. and natural, are managed under these Operations statutes: • Foundation Day 2010 events were • The Environment Protection and well planned and attended; Biodiversity Conservation Act • A new Interpretation Plan for the 1999 (Cth); Historic Area was commissioned; • The Heritage Act 2002 (NI); • A new Research & Interpretation • The Planning Act 2002 (NI) and Supervisor and Officer were The Norfolk Island Plan 2002; recruited; • The Public Reserves Act 1997 (NI) • Federal ‘Jobs Fund’ grant funding The overall management and direction was obtained to refurbish No. 9 of the site rests with the position of Site Quality Row as a research centre Manager, held by Mr Bruce and archive; Baskerville. The KAVHA workforce is • Works Supervisor and Works divided into three teams: the Works Foreman attended the University Team, the No. 9 Team and the Office of Canberra Summer School Team. The Works Team, managed by Heritage Conservation course, and Works Supervisor Mr David Magri, Research and Interpretation staff consists of 12 staff divided into four visited major archives and research crews (carpentry, painting, gardens and centres in Sydney; grounds, and landscape) under two • The Cemetery Reserve boundary foremen. The No. 9 Team, managed by was extended westwards to Research and Interpretation Supervisor provide more grave sites and Robyn Ashworth, consists of Ms expert archaeological advice was Ashworth and one Research Officer. obtained on methods for The Office Team consists of the Board identifying unmarked graves in the Secretary and the Site Manager. A graveyard; Management Team, consisting of the • Amendments made to the Norfolk Site Manager, Works Supervisor and Island Plan to label Special Use Research and Interpretation Supervisor, Zones in Quality Row as ‘Public meets weekly to co-ordinate Buildings & Educational operational issues across the whole site. Establishments’ and, in the case of The organisational structure of Government House, ‘Government - 32 - House & Domain’; to require five visitor sources were Australia consent for new tree plantings such 53%, Norfolk Island 20%, USA as plantations and for road 7%, NZ 5% and UK 4%. Western earthworks within KAVHA, and Europe, East Asia and Brazil other matters; accounted for most of the other • Expert engineering and 11%. archaeological advice was obtained KAVHA MANAGEMENT BOARD concerning the integrity of the The KAVHA Board’s vision is “To Bounty Street Bridge structure, as conserve, manage and promote well as the load bearing capacity of Kingston & Arthur’s Vale Historic the No. 9 Quality Row floors and Area, through a partnership of all the top floor of the Commissariat stakeholders, and in a sustainable way, (All Saints) building; as a place of community, national and • The International Council on world significance” . (Adopted 18 June Monuments and Sites (ICOMOS) 2009). Expert Technical Mission (M. Restoration work around Kingston Christophe Sand of New began in 1962, and in 1973 regular Caledonia) was conducted over the Federal funding became available whole site for the world heritage through the Inter-departmental nomination inspections – Committee. The Committee was subsequent online newspaper succeeded by the Kingston & Arthur’s polling in September showed 84% Vale Historic Area Management Board support for world heritage listing; in 1989 that provided for joint • Qualified and experienced administration and funding by both KAVHA Works Team staff governments. The Memorandum of removed and packaged asbestos Understanding (MOU) between the files from the roof of St. Barnabas Norfolk Island and Federal Chapel in preparation for re- Governments was revised in 1994 and roofing with slates; continues to operate. • Water weeds, especially water The Norfolk Island representatives on hyacinth, were removed from the Management Board are the Hon. lower reaches of Watermill Creek, David Buffett AM, MLA and the Hon. and the creek channel was fenced Andre Nobbs, MLA. The Federal to stabilise the banks in accordance representatives are Mr Theo Hooy with an approval under the EPBC (Department of Environment, Water, Act; Heritage & the Arts) and Ms Alison • A report was obtained on the Green, succeeded by Mr Julian Yates increasingly limited availability of (Attorney General’s Department). His Rose Sheoak (Allocasuarina Honour the Administrator Owen Walsh torulosa) shingles for future also attended all meetings. The Chair restoration projects in Kingston; was held by Mr Theo Hooy. th • 1,464 unique visits were made to The Board met on 2 occasions (59 th the website ( www.kavha.gov.nf ), meeting on 5 November 2009 and 60 making 7,046 page views for an meeting on 13 May 2010) and for 1 average 6:36 minutes/page. 70% special meeting by video conference. were first time visits, while 5% Meetings were held in the Legislative made between 51-100 visits. Top Assembly Chamber in Kingston, - 33 - preceded by site inspections within the Operations Historic Area. Major achievements for the financial GST OFFICE year ending 30 June 2010 include: The principal function of the GST • Monies received for payment of Office is to administer the Goods and GST totalled $7,872,916.54. Services Tax Act 2007 . • Monies received for payment of The Chief Revenue Officer and a part court fines relating to non-payment time GST Officer staff the GST Office. of GST totalled $30,000. The Minister responsible for the Goods • Audits undertaken by the GST and Services Tax Act 2007 until the Office resulted in an additional March 2010 election was the Minister $33,740.00 GST being received. for Finance the Hon. Neville Christian. The majority of this figure was for Since March 2010 the Hon. Craig incorrect claims of input tax credits Anderson, Minister for Finance and the for capital items, personal items, Attorney-General has been the GST free items (i.e. gas), and also responsible Minister. for non-declaration of all revenue The GST Office is responsible for: received. • the collection of all goods and • With a 1% surcharge being levied services tax paid by registered on payments of GST/NSL made by persons; Mastercard and Visa as from 23 • the issue of receipts for such April 2010 (American Express and payments; Diners Club unable to be used for • the examination of all remittance payments from this date), monies forms; collected for this surcharge totalled • the registration and cancellation of $1,571.61. businesses; • Total monies received by the GST • the monitoring of duty drawback; Office for the financial year 1 July • the preparation and issue of 2009 to 30 June 2010 was penalties and summonses for non- $7,874,537.59. payment of GST; Comparative charts are shown below to • the maintenance of all records depict the amount of gross revenue as pertaining to GST; declared by registered persons; the • the random audits of monthly amount of GST free sales; the amount remittance forms of NBN holders of input tax credits claimed by NBN in relation to their business holders and the GST received for the records; relevant month since the inception of • the provision of advice and GST in April 2007, up to and including guidance to the public. payments for June 2010. The revised Goods and Services Tax Act came into effect on 1 July 2009.

- 34 -

GST Monthly Comparison - Gross Revenue

$16,000,000.00

$14,000,000.00

$12,000,000.00

$10,000,000.00 GROSS REV 06/07 GROSS REV 07/08 $8,000,000.00 GROSS REV 08/09 $6,000,000.00 GROSS REV 09/10

$4,000,000.00

$2,000,000.00

$- JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN

GST Monthly Comparison - GST Free Sales

$5,000,000.00

$4,500,000.00

$4,000,000.00

$3,500,000.00 GST FREE SALES 06/07 $3,000,000.00 GST FREE SALES 07/08 $2,500,000.00 GST FREE SALES 08/09 $2,000,000.00 GST FREE SALES 09/10 $1,500,000.00

$1,000,000.00

$500,000.00

$- JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN

- 35 -

GST Monthly Comparison - Input Tax Credits

$250,000.00

$200,000.00 INP UT TAX CREDITS 06/07

INP UT TAX CREDITS 07/08

$150,000.00 INP UT TAX CREDITS 08/09

INP UT TAX CREDITS 09/10 $100,000.00

$50,000.00

$- JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN

GST Monthly Comparison - GST Remitted

$900,000.00

$800,000.00

$700,000.00

$600,000.00 GST REMITTED 06/07

$500,000.00 GST REMITTED 07/08

$400,000.00 GST REMITTED 08/09

$300,000.00 GST REMITTED 09/10

$200,000.00

$100,000.00

$- JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN

As at 30 June 2010 there was a total amount of GST free sales, input tax registration of 610 businesses. A credits claimed and GST remitted to the number of businesses have been GST Office did increase significantly suspended and may be reactivated at a for some months. later date. The GST Office was audited by both GST was increased to 12% (up from internal and external auditors and all 9%) on 1 July 2009. Whilst the amount records and finances were found to be of Gross Revenue received by NBN correct. holders did not jump dramatically, the - 36 - As at 30 June 2010, duty drawback able of significant reductions to services to be claimed totalled $673,902.66. resulting in higher charter rates being Since the inception of GST imposed by the charterer. $1,460,230.72 has been claimed in duty The market mix travelling on Norfolk drawback. The ability to claim duty Air is a leisure market and price drawback is due to end in 2012. It is sensitive. estimated that over $53,000.00 will not After some buoyancy surrounding the be claimed. new Norfolk Island branding launch in NORFOLK AIR October/November 2009 and the Norfolk Air is a Government Business associated campaign running through Enterprise within the Administration of until early February 2010, Norfolk Norfolk Island, responsible for the Island’s improved profile was not selling and marketing of seats and sustained and passenger bookings cargo space on the chartered aircraft slipped back in the last quarter with services between the Australian June passenger numbers being amongst mainland gateways of Brisbane, the worst experienced in more than a Melbourne, Newcastle and Sydney to decade. and from Norfolk Island. Its primary Operations function is to maintain regular Whilst the trading circumstances have passenger traffic services in a been difficult, we experienced one of sustainable and efficient manner the better operational years with Our enabling tourists and resident travellers Airline’s B737-300 aircraft providing a reliable form of transport. much improved performance for the Norfolk Air is reliant on the services Norfolk conditions. VH-NLK, the provided under its charter agreement Norfolk Air liveried aircraft has been with the operator of the aircraft. well received for its comfort and During the 2009/2010 financial year, legroom and overall performance by the Nauru Air Corporation trading as our customers. VH-NLK was taken out ‘Our Airline’ provided the flying for of service from 13 June for its major the Norfolk Air network of services. scheduled maintenance overhaul C- Under the charter agreement, the Check, with this likely to see it out of operating airline holds an Air service for approximately 2 months. Operator’s Certificate issued by the Financial Performance Civil Aviation Safety Authority of The trading result for the 2009/2010 Australia, and is responsible for financial year saw Norfolk Air suffer a regulatory compliance, provision of loss of $3.65m, reflecting the technical crew, maintenance and difficulties and softness of the market. insurances. Sales and distribution, $2.23m was attributable to the July- marketing, yield, provision of cabin December operating period, and a crews and passenger contact services lesser loss of $1.42m recorded in the are controlled by Norfolk Air. last half year. Norfolk Air took action Trading Performance to reduce services to more closely meet The 2009/2010 financial year proved to demand; however reductions come at a be another difficult trading year for cost with higher charter rates being Norfolk Air. Tourism visitation to applicable. The actions taken were Norfolk Island continued to decline in justifiable with overall operating costs numbers necessitating the continuation being reduced through lower fuel costs

- 37 - and overall operational costs from Norfolk Air has honoured the reduced flying. commitment of Government to provide Norfolk Air took actions to implement a locally based cabin crew for the various air fare initiatives during the services operated by Our Airline. Six course of the year. Without such of the crew previously employed by actions, it is probable that less visitor Ozjet were joined by four other Island numbers would have been achieved and residents to commence flying in July would have impacted the Island’s 2009 in new Norfolk Air uniforms. economy more severely than the Overall Norfolk Air now employs downturn had contributed. fourteen Norfolk Island residents, Administration & Personnel including four staff in our local Norfolk Air has dedicated staff booking and administration office. providing great customer service. Substantial improvement in developing management reporting information on a regular basis has occurred. This is an area where the operation has previously been very weak.

- 38 - CORPORATE & COMMUNITY SERVICES RISK MANAGEMENT financing (insurance). The risk management process is aimed The Administration uses ‘RiskeMAP’ a at identifying, assessing, prioritising risk profiling software system to and mitigating the significant risks manage and maintain its hazard/risk which could impact on corporate register. At the beginning of the year governance and the delivery of the there were numerous risks within the Administration’s performance database with an extreme or high risk management arrangements. rating. Currently there are no hazards Creating a culture where effective risk in the extreme risk rating and 88 management is an integral and natural hazards in the high risk rating - an part of the way people work improvement of approximately 80%. (embedding risk management) is a The objectives being achieved by the long-term aim for the Administration. risk management program have Such a culture is being encouraged and allowed the Administration to ensure developed within the departments. insurance premiums are kept to a Progress is being made with embedding minimum. The Administration also but full realisation of the aim will received an insurance premium rebate require sustained long-term effort. and risk management bonus which are The key issue for the risk management calculated according to compliance program is ‘how do we make as much levels and claim results. progress as possible with culture COMPLAINTS HANDLING change, as quickly as possible, and Between 1 July 2009 and 30 June 2010, sustain the momentum ’. 24 complaints were registered on the The Administration of Norfolk Island is customer complaints system. As at 1 required to complete an annual audit in July 2010 no complaint files remained relation to risk management open. The majority of complaints were performance concerning 10 major for procedures and practices or pricing public liability and professional policies. Complaints are not confined indemnity risk areas identified by to one section or department but is seen Insurers Statewide Mutual. across the Administration as a whole. As a result of last year’s audit score a Most complaints are resolved within number of tasks were undertaken to the timeframes set out in the improve compliance. The results of the Complaints Handling Procedures. 2010 audit illustrated that the There are a few that extend these Administration had improved timeframes. Most complainants do not compliance to achieve a score of 85%. return the acceptance of resolution The Statewide and NSW regional form; therefore it is assumed that the average remains at 70%. outcomes are mostly accepted even if Tasks undertaken included the not agreed to. Two complainants have reviewing and updating of policies and returned seeking an alternate solution. guidelines; undertaking risk A couple of complaints have not been assessments and development of risk satisfactorily resolved, indicating a management plans; site inspections; need for an independent external investigations into complaints, resolution process (probably the need incidents and claims; and acquiring for the Ombudsman). appropriate and cost effective loss Outcomes achieved include changes to

- 39 - policies, procedures and practices. significantly. This could also be further improved if Thirty-one accidents/incidents/near service charters were developed and the misses were reported over the last public are informed of changes made twelve months. The statistics show that and final outcomes of complaints. the majority of the incidents were in the A review of the system should now be medium risk rating range. The undertaken and should consider majority of the injuries have stemmed extending the response times to allow from being struck by or hit by thorough investigation into the something. complaint. It should also be considered A number of workers have been to have 3 or 4 people dedicated to identified as requiring specific work handling all complaints to increase health and safety training and this is confidence in confidentiality rather being discussed with the Human than each manager handling the Resources Section for next year’s complaints. budget. OCCUPATIONAL HEALTH & SAFETY Eighteen new OH&S Policy and The Administration has a legal Guidelines were approved by the responsibility to provide a safe and Corporate Management Group (CMG) healthy workplace. Public sector and introduced. These policy and employees are required to comply with guidelines aim to bring Administration policies and procedures set out in the OH&S practices in line with Australian Human Resources Policies and standards. Procedures Manual. The quarterly OH&S newsletter and The two main functions of the Norfolk minutes of the monthly NIAOHSC Island Administration Occupational meetings are published on the Health and Safety Committee Administration’s intranet to increase (NIAOHSC) are: awareness of OH&S matters. • To deal with matters in the FINANCE UNIT workplace generally affecting the The Finance Branch is managed by the health and safety of people by Finance Manager who is responsible bringing matters to the attention of for the accounting functions of the the manager/supervisor to act and Norfolk Island Administration. resolve as soon as possible; Ministerial responsibility for the • To make recommendations on Branch rests with the Minister for OH&S matters to continually Finance. improve the OH&S management The Finance Branch’s Accounts system. Section has a staff of 8. The committee is pleased to report that Financial Management all sections/worksites were inspected. The Public Account of Norfolk Island, Of the substandard conditions consisting of all public moneys identified, 60% have been corrected, available for the purpose of the Norfolk the rest have been scheduled for when Island Government, is established resources permit. under the Norfolk Island Act 1979 As a result of the ongoing workplace (Cth). The Public Moneys Act 1979 inspections and risk controls put in provides for the administration, place, it has been seen that the number collection and payment of public of identified hazards has reduced moneys by the Government of Norfolk

- 40 - Island. Administration and are required to fund The principal sources of revenue for the all their own computer equipment. Revenue Fund in 2009/2010 are The IT Section is staffed by a Manager, Customs Duty, GST, Gaming Tax and a Chief Technical Officer and 3 IT the net profit from the Liquor Supply Officers. Service. The Convergent Technologies The Revenue Fund’s operational and Operating System (CTOS) equipment capital expenditures for the year totaled has been operational for 26 years and is $16.193M thus resulting in a deficit of still currently in use in the Accounting, $462K. Capital Works and Purchases Customs and Immigration funded by the Revenue Fund in Departments. The IT Manager has 2009/2010 totalled $12,900. On a been principally involved in a Request consolidated basis (i.e. all Entities For Proposal (RFP) to replace this comprised in the Public Account) after system. The RFP responses have been the application of depreciation of reviewed and recommendations made, $3.257M the Administration’s however we await budget allocation expenditure exceeded income by and go ahead for the replacement $4.762M. Capital Works and project. Purchases across all Entities amounted The IT Officers perform support to $506K. throughout the organisation with one The Administration’s consolidated Net officer having principal responsibility Assets at 30 June 2010 amounted to for purchasing of all equipment and $22.719M. Cash at Bank was software. Another IT Officer is $5.514M. Of this amount $626K was principally focussed on a service wide held in trust. The reserve balance training programme in office (Equity) of the Revenue Fund was applications which has been underway $6.705M. for the latter part of the year under INFORMATION TECHNOLOGY review. The Information Technology (IT) The Chief Technical Officer continues Department supports a large customer to be based at Telecom, focussing on and application base throughout the their information communications Administration and other government technology requirements including areas. This support role includes implementation and maintenance of the providing training and support to ISP, ADSL and GSM mobile phone Administration computer users of systems including prerequisites for platforms and applications. The IT Global Texting and Roaming. Department ensures that all The IT Section continues to be the Administration departments are able to escalation point of support for the ISP fully utilise the technology available to run by Norfolk Telecom, which them in their core business. remains the centre for internet access Computer equipment standardisation for Norfolk Island. There has guidelines are currently being continued to be a large uptake of ADSL implemented throughout the services with wireless internet access Administration. All Government within the home proving to be the most Business Enterprises (GBEs) are popular modem choice. required where possible to adhere to the standards guidelines for the

- 41 - RECORDS MANAGEMENT The principal function of the Customs The Administration’s Records office is Service is the provision of services in located on the top floor of the New the following areas: Military Barracks, Kingston. The • Facilitating the movement of department operates with 3 full time people and commerce whilst staff and is responsible for the carrying out border protection movement of files as requested by functions; Administration employees. • Determining, recording and The department manages over 22,000 collecting the dutiable status of files. imported goods; The Recfind management system is • The interdiction and detection of used to manage the movement of files illicit drugs and firearms. throughout the Administration. This Customs carries out requirements and system has operated successfully in the derives its authority from the Customs electronic movement of files and Act 1913 , as well Customs Officers storing of electronic information. The also carry out functions conferred by process of attaching electronic the following Acts: documents to files was monitored and • Airport Act 1991 proved to be an effective tool in record • Dangerous Drugs Act 1927 storage. The system has a large storage • Departure Fee Act 1980 bank that will be manageable for some • Endangered Species Act 1980 years. • Fish (Export Control) Act 1984 The relocation of stored documents • Immigration Act 1980 from a private facility to an • Administration owned facility at Anson Plant and Fruit Diseases Act 1959 • Bay was completed in October 2009. Trade Marks Act 1995 (Cth) Archived material stored in the All For the period July 2009 through to Saints Church attic now needs March 2010 Customs was responsible relocating as engineering reports to the Hon. Neville Christian, Minister suggest the weight may cause for Finance. Since March 2010 the problems. Hon. Craig Anderson, Minister for NORFOLK ISLAND CUSTOMS Finance and The Attorney-General is Norfolk Island Customs assists in the Minister responsible for Customs managing the security and integrity of matters. Norfolk Island’s borders. Customs Norfolk Island Customs has a staff of 6 Officers work very closely with local Customs Examining Officers and the government agencies such as Norfolk Manager Customs & Immigration Island Health and Quarantine, Norfolk Services. Customs has a fleet of 1 Island Immigration and the Norfolk 4WD vehicle, 1 station wagon and 1 Island Police Service, as well as 250cc motorbike. To minimise the risk international bodies such as Australian of illegal drugs and firearms being Customs and Border Protection imported by postal items or travellers, Service, Australian Coastwatch, computer-based analysis and x-ray are Oceania Customs Organisation (OCO) amongst some techniques employed and New Zealand Customs to detect whilst aircraft, vessel and cargo are and deter the unlawful movement of dealt with by screening, risk people and goods across the border. management and inspection where necessary. - 42 - It is expected that the extension to the Norfolk Island Customs is a member of airport arrivals hall will commence the Oceania Customs Organisation shortly which will allow the installation (OCO) and attended the 12th annual of an x-ray machine, designed to conference in Samoa in May 2010. provide more efficient and accurate The Norfolk Island Customs Service screening of incoming passengers. provides a level of Customs Norfolk Island Customs continues to administration which is comparable to participate in the local Airport our regional partners by delivering a Emergency Committee, Airport professional service to the Norfolk Security Committee, Norfolk Island Island community and continuing to Fisheries Consultative Committee and pursue initiatives to enhance facilitation the Social Awareness Committee. and protection of our borders. Customs Arrival and Clearance Statistics 2007-2008 2008-2009 2009-2010 Aircraft Arrivals (RPT, Military & Private) 669 676 592 Aircraft Passengers (Residents & Visitors) 39,717 34,047 30,897 Small Craft Arrivals (yachts etc) 15 23 30 Cruise Ships 3 7 Cargo Vessels 19 18 16 Air Cargo 282 tonnes 308 tonnes 319 tonnes Sea Cargo 5,755 tonnes 5,720 tonnes 5,344 tonnes Petroleum Tankers 4 3 4 Petroleum Products 4,760 tonnes 3,151 tonnes 3,688 tonnes Gas Tankers 4 5 3 Gas Discharged 304 tonnes 429 tonnes 247 tonnes First Class Letters & Parcel Post Items 61 tonnes 58 tonnes 77 tonnes Customs Duty Collected $1,366,394.00 $1,135,600.00 $1,296,467.00 IMMIGRATION The function of the Immigration Office that the department is open and is to manage the entry and settlement of accountable and deals fairly, equally people to Norfolk Island in compliance and efficiently with clients. with, and administered by, the For the period July 2009 through to following Acts: March 2010 Immigration was • Immigration Act 1980 responsible to the Hon. Andre Nobbs, • Departure Fee Act 1980 Chief Minister. Since March 2010 the • Referendum Act 1964 Hon. Craig Anderson, Minister for Finance and The Attorney-General is The Immigration Office provides for a the Minister responsible for staff of three officers and the Manager Immigration matters. Customs & Immigration who ensures

- 43 - Immigration staff also provide support A comparison of these results with the to the Immigration Committee, a same categories for the previous year statutory body appointed under the indicates a considerable increase in Immigration Act 1980 . The Act special relationship permits and a requires a committee of not less than 3 decrease in Declarations of Residency and no more than 5 members, at least 1 permits, with an overall decrease in the and not more than 2 of whom are total number of permits. members of the Legislative Assembly. Permits Processed From passenger arrival and departure Permit Type 2008/09 2009/10 cards the Immigration Office maintains Temporary 460 454 a database of residents and visitors on Entry Permits Norfolk Island. General Entry 32 22 During the year the office processed Permits/Quota the following: General Entry 7 21 Temporary Entry Permits 454 Permits/Section Variations/Amendments to 172 18 Special Temporary Entry Permits Relationship General Entry Permits/Quota 22 Declarations of 36 13 General Entry Permits/Section 21 Residency 18 Special Relationship TOTAL: 535 510 Declarations of Residency 13

600

500

400

2008-09 300 2009-10 200

100

0

- 44 - REGISTRY OFFICE that all matters are heard on Island and The Registry Office is responsible for directions, urgent applications and the administrative and statutory delivery of judgments occur in functions of the courts and tribunals, Australia, unless both parties to an land titles, births, deaths and marriages, action request that the matter be heard liquor licensing, motor vehicle in Australia. registration and licensing and other The following matters were filed in the miscellaneous registrations. It is also Supreme Court during the year: responsible for the administration of Civil matters 4 Commonwealth legislation under the Grant of Probate 10 Family Law Act 1975 (Cth) and the Grant of letters of 1 Marriage Act 1961 (Cth). Administration, with Will Registry Office staff includes the Grant of letters of 2 Registrar, Deputy Registrar and Administration, no Will Administrative Officer – Lands. Reseal of Probate, Foreign 5 SUPREME COURT The Supreme Court is the superior Grant court of record for the Territory and all COURT OF PETTY SESSIONS appeals lie with the Federal Court. The Court of Petty Sessions is Other courts include the Court of Petty established under the Court of Petty Sessions, Administrative Review Sessions Act 1960 . The Chief Tribunal, Employment Tribunal, Public Magistrate Mr Ron Cahill, who was Sector Remuneration Tribunal, also the Chief Magistrate for the Coroners Court and Mental Health Australian Capital Territory, was Tribunal. responsible for managing the Judges of the Supreme Court are administrative affairs of the Court. Mr appointed from the Federal Court of Cahill resigned with effect from 17 Australia by the Governor-General November 2009. He had been a under the Norfolk Island Act 1979 . magistrate since 27 April 1981 and was Justice Peter Jacobson is the Chief subsequently appointed as Chief Justice of the Supreme Court and Magistrate from 15 July 1985. On 19 Justice Bruce Lander and Justice Garry January 2010 the ACT Magistrate Peter Downes AM are also appointed to the Dingwall, who is also a magistrate in Supreme Court as Judges. the Court of Petty Sessions, was Sittings of the Supreme Court were appointed as the Acting Chief held in Norfolk Island between 3 and 7 Magistrate for a period of 12 months. August 2009 with Justice Downes There was 1 telephone direction presiding. During the year there were 3 hearing before Acting Chief Magistrate directions hearings and 1 hearing – 2 Dingwall on 16 June 2010. The were by telephone and 2 by video link. jurisdiction of the Court may be The Supreme Court also sat in Sydney exercised by the Chief Magistrate or with 3 directions hearings and handed any 3 magistrates (including the Chief down 1 decision. All criminal matters Magistrate) to hear and determine, in a are required to be heard in Norfolk summary manner, all criminal matters Island. Civil matters may be heard in arising under a law in force in Norfolk the Island or in any State or self- Island where an offence is punishable governing Territory. The practice is on summary conviction. The Court has

- 45 - jurisdiction to determine civil claims Anderson was elected to the Norfolk not exceeding $10,000. Island Legislative Assembly and had The following matters were filed in the served as Deputy Coroner for 6 years. Court of Petty Sessions during the year: On 10 March 2010 Deputy Coroner Default summonses 406 Anderson conducted 2 inquests into the cause and origin of fires. The Clerk is Domestic violence applications 2 delegated under section 8 of the Act by Criminal summonses filed 70 the Coroner to carry out functions other Liquor prohibitions 2 than the power to conduct an inquest. Family Law Act provisions 3 There were no matters dealt with by the Auctioneers Licence 1 Coroner’s Court during the year. Magistrates appointed to the Norfolk Summary of Births, Deaths and Island Court of Petty Sessions are: Marriages – 1 July 2009 to 30 June • Mrs Elaine Sanders 2010 • Mrs Patricia Magri Births Female 10 • Mrs Kate Smith Male 11 • Mr Albert Buffett • Mr H. Brett Martin Deaths Female 6 Male 10 • Mr Allan Tavener • Mr Reece Walden Marriages 26 On 3 December 2009 Mrs Bronwyn BIRTHS , DEATHS & MARRIAGES South and Mr Brian McGrath were The R egistration of Births, Deaths and appointed as magistrates by the Marriages Act 1963 provides for the Administrator Mr Owen Walsh. The registration of all births, deaths and appointment of Mr Brendon Anderson marriages in the Territory. as a magistrate was revoked on 23 Under the Marriage Act 196 1 (Cth), November 2009 when he departed the both the Registrar and Deputy Registrar Island to live in Australia. are authorised civil celebrants. CORONER ’S COURT During the year the Registrar attended The Coroners Act 1993 provides for the the conference of the Council of the holding of inquests into the manner and Australasian Registrars (COAR) in cause of death, inquiries into the cause Brisbane on 22 and 23 October 2009. and origin of fires and for related LAND TITLES purposes. Mr Ron Cahill, Coroner, is Land titles are administered under the responsible for the administrative Land Titles Act 1996 , the Crown Lands affairs of the Court. Mr Cahill’s Act 1996 and the Conveyancing Act appointment as Coroner expired on 14 1913. December 2009. The Deputy Coroner Conversions of title from Old Title to Mr Craig Anderson resigned with the Guaranteed Land Title System effect from 1 June 2010, which is the continued under the provisions of the date that Mr Michael Hehir was Land Titles Act 1996 . appointed as Deputy Coroner. Mr

- 46 - The following schedule relates to land dealings during the period 1 July 2009 to 30 June 2010: Land Titles Act 1996 Applications to register freehold title 73 Transfers 87 Mortgage 68 Discharge Mortgage 42 Lease 7 Termination/Expiry of lease 2 Transmission Applications 15 Notice of Death 7 Registration of Easement 69 Registrar’s Dealing/Note 48 Determine Freehold Tenure 18 Application to Register Crown Lease 1 Determination of Crown Lease 3 Applications to Register Freehold Estate 73 Caveat 6 Amendment of Easement 9 Termination/Expiry of Lease 2 Applications (General) 16 Conveyancing Act 1913 Grant of Licence 2 Discharge of Mortgage 2 Conveyance 5 Mortgage 2

MOTOR VEHICLE REGISTRATION dog registrations under the Dogs The Road Traffic Act 1982 prescribes Registration Act 1936 ; registration of the Registrar of Motor Vehicles as a Bills of Sale under the Mercantile Law member of the Road Safety Committee Act 1959 and a repository for wills. which meets each month to consider Other duties include the issue of road safety issues and to make photographic gun licences under the recommendations to the executive Norfolk Island Firearms and member. Matters concerning either the Prohibited Weapons Act 1997 and the need for legislation or the amendment issue of photographic drivers licences of legislation are considered, as well as under the Road Traffic Act 1982 . other road safety issues. The number COMPANIES & WELFARE SERVICES of motor vehicles on the register as at The Companies and Welfare 30 June 2010 was 2,929 which Department is managed by two staff, an included 362 private hire vehicles. Administrative Officer and Assistant Administrative Officer, and between MISCELLANEOUS REGISTERS Miscellaneous registers include them are responsible for administering registration of Powers of Attorney the following legislation: under the Powers of Attorney Act 1959 ; - 47 - • Associations Incorporation Act The Business Names Act 1976 requires 2005 persons and corporate bodies carrying • Business Names Act 1976 on business in a name other than their • Business Transactions (Levy own to register that name. Imposition) Act 2006 Information lodged with this office • Companies Act 1985 becomes publicly available • Legal Aid Act 1995 information. • Retail Price Index Act 1983 During the Year: • • Social Services Act 1980 7 new companies were This Department is also responsible for incorporated, the same amount as the collection of prices and data input the previous year. • for the Retail Price Index and the There are currently 149 companies Benefit Adjustment Factor. registered. • 53 new business names were COMPANIES OFFICE The Companies legislation provides for registered. • the registration of companies and 5 associations were incorporated. • associated activities. It is locally Fees of $72,948 were collected for enacted legislation, which although companies, business names and similar to mainland legislation, is associations. This is a reduction of separate and independent from it. 3.1% in comparison to the previous year.

Company Fees

$90,000.00 $85,000.00 $80,000.00 $75,000.00 $70,000.00 $65,000.00 $60,000.00 2006/2007 2007/2008 2008/2009 2009/2010

- 48 -

SOCIAL SERVICES Pensions are paid on a needs basis and The Norfolk Island Government is are reduced according to the recipient’s meeting its welfare obligations in income from other sources. Norfolk Island by providing pensions At 30 June 2010, 93 persons were in under the Social Services Act 1980 and receipt of either an age, invalid or other pension related benefits special benefit with an annual cost of assistance under policy. Pensions $1,224,000.00 continue to be indexed to half yearly cost of living adjustments.

Benefit Payments

$1,300,000.00

$1,200,000.00

$1,100,000.00

$1,000,000.00 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010

In addition to this, another 14 persons Apart from benefit payments, the most in receipt of a benefit from elsewhere costly expenditure item for Social were also entitled to pension related Services is the assistance with hospital benefits. and medical expenses including patient Pension related benefits include: travel, which for the year ended June • Assistance with hospital and 2010, amounted to $799,800.00. This medical expenses expenditure increased by 3.4% in • 20% reduction in motor vehicle comparison to last financial year, due registration to the 13% increase in Norfolk Island • Free telephone rental Hospital charges. • Reduction in electricity costs

- 49 - Medical & Transport Costs

$700,000.00 $600,000.00 $500,000.00 Local Medical $400,000.00 O/Seas Medical $300,000.00 $200,000.00 Transport Costs $100,000.00 $- 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010

All persons in receipt of a benefit are The index number is calculated every 3 reviewed each year and if necessary an months and is comprised of 10 sub- adjustment is made to their rate of groups making up the all groups benefit to reflect their changed number. financial situation. In 2009/2010 the all groups index All new applications and subsequent number was: annual reviews are presented to the Quarter ended 30 June 2009 202.3 Social Services Board for appraisal. Quarter ended 30 Sept 2009 206.4 The Board makes a recommendation to Quarter ended 31 Dec 2009 210.0 the executive member on the granting or continuance of a benefit Quarter ended 31 Mar 2010 211.2 BAF – Benefit Adjustment Factor Quarter ended 30 June 2010 210.2 Pensions paid under the Social Services The index number: Act 1980 are adjusted each July and • Is used to increase benefits paid January by price movements as under the Employment Act 1988 ; reported by the Benefit Adjustment • Is one of the factors taken into Factor (BAF). account in determining The BAF is a mini retail price index Administration salary movements; targeting goods and services consumed • Is used to increase the by pensioners as disclosed by a survey Administration fee units; in 1989. A total of 95 items are priced • Is a general guide to inflation in each March and September. Norfolk Island. RETAIL PRICE INDEX Each quarter the result of the The Retail Price Index measures the corresponding collection is gazetted for average price movement in a basket of public information and use. goods which has been determined by a household expenditure survey to represent the purchases of a Norfolk Island household.

- 50 - RPI Index Movements All Groups 2009/2010

220 210 200 190 180 170 160 150 Jun-10 Jun-09 Sep-09 Dec-09 Mar-10

HEALTHCARE During the Year: The Healthcare Section has the • The Healthcare Fund generated responsibility of administering and revenue of $753,371.00 from providing advice and assistance in levies collected. respect of the Healthcare Act 1989 • The Medivac Fund generated and Healthcare Levy Act 1990 . revenue of $164,017.00 with the Healthcare falls within the portfolio of total cost of medical evacuations the Minister for Community Services, for the year being $352,940.00. the Hon Tim Sheridan. • There were 95 families that The Norfolk Island Healthcare claimed from the fund throughout Scheme is fully self-insured, and the year. Claims are accepted provides medical insurance that until 30 September for the protects all members against financial year ending 30 June. catastrophic medical costs by paying • There was 1 claim paid in excess all approved medical costs in excess of $200,000, two in excess of of $2,500.00 in a financial year (1 July $50,000, 13 in excess of $20,000; to 30 June). These costs include and 9 in excess of $10,000. approved medical expenses and • Total claims lodged against the prescribed drugs incurred at the Healthcare Scheme for the year to Norfolk Island Hospital, as well as date amounted to $1,250,000.00. offshore, provided that a referral is Of this amount, 25% were for first obtained from a doctor at the local medical costs and 75% for Norfolk Island Hospital. offshore costs. Total medical Membership is compulsory for all costs for this financial year persons ordinarily resident in Norfolk exceeded budgeted amounts, Island except for those whose medical particularly for overseas costs are fully funded by the treatment. Department of Veterans Affairs.

- 51 - EMPLOYMENT & WORKERS • $48,969.00 Management COMPENSATION Fees; Employment and Workers • $129,854.00 Workers Compensation is operated as a Compensation wages; Government Business Enterprise, and • $230,563.00 Compensation has the responsibility of administering Medical Expenses; the Employment Act 1988 and • Nil lump sum payouts Employment Regulations. B oth (claimed on insurance departments are included in the policy). portfolio of the Minister for • During the 2009/2010 financial Community Services, the Hon. Tim year there were 93 work place Sheridan. accident claims against the Areas of responsibility include: Compensation Fund. Included in • Providing advice and assistance to this figure were 20 assistance employers and employees on payments for weekly wages, 1 of entitlements, minimum wages and which is on-going from the conditions; previous financial year. • Providing assistance to TOURISM ACCOMMODATION Employment Conciliation Board The Tourism Accommodation Section members; forms part of the Administration’s • Managing the Workers Community Services Section and is Compensation Fund which responsible for administering statutes includes collection of monthly relevant to the Tourist levies, recording data and Accommodation Acts, Regulations processing applications for and Policies. compensation for medical The primary responsibilities of the expenses and weekly benefit section include: payments; • The processing of registration • Administering the Occupational renewals and applications for Health & Safety Workplace tourist accommodation properties, Inspections for the Norfolk Island owners and managers. business community; • Organising annual star rating • Processing and lodgement of assessments. claims with the Workers • Ensuring property compliance Compensation re-insurer. with regulations and policy. During the Year: • Maintaining statistics and records • The Workers Compensation Fund relevant to tourist accommodation generated revenue of $342,465.00 matters. from levies collected. As at 30 • Providing internal and external June 2010 there was a total of 314 advice on various tourist employers contributing to the accommodation matters. Scheme; The 2009/2010 financial year saw a • Expenditure for the 2009/2010 total of 26,339 visitors, which was a year included: decline of 3,300 visitors compared to • $100,000.00 Insurance the 2008/2009 financial year. 23,682 Premium; of those visitors stayed in tourist accommodation – 3,446 below that of - 52 - the previous financial year. a decrease of 25,635 compared to The total number of visitor days in 205,944 visitor days in the 2008/2009 public accommodation was 180,309, - financial year.

Visitor Arrivals to Norfolk Island: 1988/89 to 2009/2010

45000

40000

35000

30000

25000

20000

15000

10000

5000

0 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Total Visitor Numbers in Public Accommodation, 2001/02 to 2009/10 ↓↓↓ Lowest Month ↑↑↑ Highest Month - within Each Financial Year 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 July 2083 2065 ↓↓↓ 2573 2225 1631 2568 2003 ↓↓↓ 1814 1412 August 2199 2261 2591 2667 1973 2918 2684 2306 1878 September 3106 3076 3138 3204 2126 2409 2928 2461 1929 October 2971 3460 3786 ↑↑↑ 3473 ↑↑↑ 2713 ↑↑↑ 2881 3125 2927 2835 ↑↑↑ November 2741 3012 3656 2870 2452 2816 3183 2358 2297 December 2643 2792 3033 2546 1987 2504 2406 2065 1741 January 1854 ↓↓↓ 2503 2175 ↓↓↓ 1714 ↓↓↓ 1495 ↓↓↓ 1837 ↓↓↓ 2188 1894 1843 February 2601 2666 2660 2357 2064 2557 2838 2087 2098 March 3267 ↑↑↑ 3595 ↑↑↑ 3263 2674 2247 3142 ↑↑↑ 2999 3061↑↑↑ 2521 April 2687 3215 2564 2861 2410 2625 3349 ↑↑↑ 2146 2043 May 2473 2871 3024 2205 2166 2490 2499 2219 1794 June 2535 2717 2455 1849 2251 2268 2386 1790 ↓↓↓ 1291 ↓↓↓ F/YEAR 31,160 34,233 34,918 30,645 25,515 31,015 32,588 27,128 23,682 TOTAL

- 53 -

Total Visitor Days in Public Accommodation, 2001/02 to 2009/10 ↓↓↓ Lowest Month ↑↑↑ Highest Month - within Each Financial Year 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 July 15331 15384 ↓↓↓ 18963 15953 12510 18978 14301 ↓↓↓ 13424 ↓↓↓ 10308 August 16822 17297 19821 20083 14600 21301 19808 17825 14141 September 24072 23039 22939 21954 15775 18212 21872 18679 14197 October 22936 26400 27259 ↑↑↑ 25527 ↑↑↑ 20727 ↑↑↑ 22126 23312 22450 21659 ↑↑↑ November 21901 22982 26543 21181 19077 21007 23936 17944 17457 December 24606 22196 24780 20419 16095 20533 19440 16788 14032 January 13942 ↓↓↓ 19373 16400 ↓↓↓ 13318 ↓↓↓ 12289 ↓↓↓ 14586 ↓↓↓ 17066 14564 14099 February 20002 20182 19498 17937 16140 19254 21115 15777 16029 March 25058 ↑↑↑ 27214 ↑↑↑ 25027 20617 17482 22999 ↑↑↑ 21923 22896 ↑↑↑ 19134 April 20905 24177 19512 21543 19208 21052 25118 ↑↑↑ 15816 15547 May 19190 21504 23134 19139 16743 19173 19167 16177 13688 June 19266 20459 18167 14256 17130 18484 18134 13604 10018 ↓↓↓ F/YEAR 244,031 260,207 262,043 231,927 197,776 237,705 245,192 205,944 180,309 TOTAL

Private Accommodation Public Accommodation Total Visitors

45000 40000 35000 30000 25000 20000 15000 10000 5000 0 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10

Tourist accommodation in Norfolk Island basically falls into the following three classifications: Tourist Accommodation as at 30 June 2010 Classification Properties Units Beds Self-contained 55 (90.2%) 349 (59.9%) 1067 (66.9%) Hotel 5 ( 8.2%) 226 (38.8%) 492 (30.9%) Guest Lodge 1 ( 1.6%) 8 ( 1.3%) 35 ( 2.2%) TOTAL 61 583 1594

- 54 - The grading of tourist accommodation produces a numerical result identifying establishments in Norfolk Island is a the property’s appropriate star rating. mandatory requirement and the current Each accommodation property and its prescribed grading system is the AAA rating are entered into an Australian Tourism STAR Rating Scheme. Accommodation Register used by Star rating assessments are based on a travel agents and travellers thorough point based review; that Tourist Accommodation Units STAR Ratings as at 30 June 2010 Property Units Not 2


2½


3


3½


4


4½


5


Classification Rated Self-contained 349 6 1 0 44 225 50 21 2 Hotel 226 6 0 0 53 167 0 0 0 Guest Lodge 8 0 0 0 0 8 0 0 0 Total Units 583 12 1 0 97 400 50 21 2 Average % 2.1% .2% 0% 16.6% 68.6% 8.6% 3.6% .3% NORFOLK ISLAND MUSEUM a web site dedicated to the HMS Sirius . The Norfolk Island Museum is The web site was completed and responsible for the care, research and launched in October 2009 at display of three significant collections - www.hmssirius.com.au . The site is the the Sirius collection, the KAVHA most comprehensive collection of archaeological collection and the material on the life of the Sirius , Norfolk Island collection. The voyage of the First Fleet, her wrecking Museum operates three exhibition on Norfolk Island and recovery of venues, at the Pier Store, the artefacts from the reef. Commissariat Store and No. 10 Quality • A grant of $6,540.00 was received Row, as well as a café/bookshop at the from the Maritime Museums of Royal Engineers Office, an historical Australia Project Support Scheme play The Trial of the Fifteen twice a to conduct a significant assessment week and tag-along tours six times a of all maritime material held in the week. collection (except HMS Sirius ). Key achievements for the year include: This major project was completed • Despite the downturn in tourist and acquitted by June 30. numbers, museum ticket sales • Karina Acton from International increased by 15% from 2008/09. Conservation Services visited the • Opening up the Pitcairn Norfolk island in March 2010 to work with Gallery at the Pier Store Museum. Janelle Blucher on conservation of This gallery provides visitors with HMS Sirius objects. This project an exhibition on the Mutiny on the was funded through the Historic Bounty and life on Pitcairn and Shipwrecks Program and allowed Norfolk Islands. completion of conservation • Upgrading displays at the treatments on high priority objects. Commissariat Store to better • A new Kingston Heritage Walk interpret the First and Second tour was developed, initially to Settlements. cater for cruise ship visitors. Five A grant of $11,700 was received by the staff were equipped and trained as Historic Shipwrecks Program to create guides. The numbers we were - 55 - initially led to believe would take The Norfolk Island Quota Club has up the tour were unrealistically generously contributed to this section high; however there has been good for many years and continues to do so average bookings which we hope by donating Large Print books to be will increase with time. There are dedicated in memory of deceased plans to offer the tour on a weekly Island residents. basis to regular visitors. During the Year: • A new Cemetery Tour ‘For Whom • Culling of old books from both the the Bells Toll’ was launched in reference and fiction sections took October 2009. It is the only place, and this project is ongoing dedicated tour of the cemetery on to provide space for new material offer on the island and runs twice which arrives on a regular basis. weekly. The tour attracted an Once the books have been average of 10 people per week to removed from the catalogue, they the end of June 2010 and is an are offered to the public at the important addition to the specialist Library or taken to Waste tours run by the museum. Management. All museum areas have been • There are 260 current challenged by the downturn in tourist memberships and visitor numbers. Strategies to increase sales memberships fluctuate throughout will continue. the year. PUBLIC LIBRARY • The Library is open for 13 hours The Public Library is part of the per week, over a period of 4 days Administration’s Corporate and with staggered hours, and is staffed Community Services division and by one part-time Librarian and offers an outstanding service to the three Assistant Librarians. community by providing a NORFOLK ISLAND POST OFFICE comprehensive range of both fiction Norfolk Post operates within the Postal and non-fiction material, including a Services Act 1983 and is responsible children’s section. A large number of for the receipt and delivery of mail to residents and visitors use the Library. and from Norfolk Island. All outgoing The Norfolk Island Reference Section mail to Australia and the rest of the is very popular, especially with visitors, world is dispatched to the Sydney and provides an excellent range of Gateway facility and New Zealand mail publications relating to the history of is sent through NZ Post in Auckland. Norfolk Island. This section is updated Incoming mail is received from whenever new material comes to hand, Sydney, Brisbane and New Zealand. and also contains copies of reports Mail from New Zealand is received pertaining to Norfolk Island. only by air and mail from Australia by Library material is purchased mainly both air and sea. from Australia and New Zealand and is In the 2009/2010 year Norfolk Post ordered on a regular basis to ensure that continued to increase the range of a good range of up-to-date material is services and products offered to the continually available. This also community. The introduction of a wide includes audio books. range of computer based products Excellent quality large print books are including Notebooks and Netbooks has ordered once or twice a year and proved popular with both visitors and shipped from the United Kingdom. - 56 - locals alike. A wider range of Brisbane, Auckland, London, New Christmas stock also proved popular. York, Tokyo, Copenhagen and The Attaché system went live on 1 July Frankfurt. 2009. This system is used by staff to Stamp Releases record sales and update stock levels. The following issues were released in Mail Statistics: 2009: • Inwards Mail: Mosaics (Artist Mary Butterfield) • Cattle Breeds (Artist Haylee Air Letters 18,922 kgs Fields) Air Parcels 19,048 kgs • Fungi (Artist Haylee Fields) Sea Mail 39,196 kgs • Joint Territories (Artist Kevin Total: 77,166 kgs Stead) • Bush Birds (Artist Tracey Yager) Outwards Mail: • 30 Years of Self-Government (Artist Rob Nisbet) Air Letters 6,377 kgs • Christmas 2009 (Artist Mary Air Parcels 3,516 kgs Butterfield). Sea 862 kgs The following issues were released in Total: 10,755 kgs 2010: • PHILATELIC BUREAU Definitive Issue – Museum The Norfolk Island Philatelic Bureau Artefacts (Artist Mary Butterfield) operates within the Norfolk Island Post • 78 Year Anniversary P & O Cruise Office and produces and distributes Ships (Artist Mary Butterfield) Norfolk Island postage stamps under • They arrived aboard the the Postal Services Act 1983 . Morayshire (Artist Mary The Philatelic Bureau: Butterfield) • Is responsible for the planning, • The History of Whaling (Artist production and marketing of all Tracey Yager) Norfolk Island stamps; • Christmas 2010 (Artist Mary • Is responsible for providing a Butterfield) method by which stamp collectors • St Barnabas Souvenir Sheet from all over the world can NORFOLK ISLAND LIQUOR BOND enhance their hobby and purchase The Norfolk Island Liquor Bond has Norfolk Island stamps directly sole authority for the importation of all from the Bureau; liquor products into Norfolk Island. • Is responsible for maintaining a The Liquor Bond is operated as a database and providing services to Government Business Enterprise to approximately 3,000 standing supply liquor for resale to licensed order and casual customers; premises and directly to the public. • Sends the Philatelic Bulletin to The Liquor Bond is a large revenue customers, stamp clubs and stamp earner and served 68,868 customers, dealers four times per annum; and with actual sales of $4,111,128.08. • Dispatches stock to, and monitors A dividend was also paid to the sales and returns from the overseas Revenue Fund. philatelic agents in the major markets for Norfolk Island. Agent offices are located in Melbourne, - 57 - The Liquor Bond is currently staffed by Central School. 5 full time officers. The school has continued to focus on During 2009/2010 the Liquor Bond: providing a broad curriculum. • Paid import duties of One of the most significant innovations $409,2999.79; in our teaching and learning processes • Paid GST of $438,566.02; in 2009 has been the purchase of • Paid waste management fees of interactive whiteboards. By early 2010 $24,869.23; every Primary classroom had an • Paid Lighterage Fees of interactive whiteboard installed, with $41,188.69 others located in the Library and 2009/2010 Sales: Secondary block. This technology has • Local Sales $1,819,785.41 brought a new diversity and opened • Visitor Sales $ 311,588.45 new horizons in the learning of our students. • Concession Sales $ 598,443.35 Our students performed very creditably • Licensed Premises $1,265,050.66 in all external exams. School NORFOLK ISLAND CENTRAL SCHOOL Certificate and Higher School The Norfolk Island Central School Certificate results were very creditable focuses on being a K-12 entity that with the achievement of a Band 6 in 2 provides a broad ranging curriculum Unit Mathematics a particular encompassing educational, sporting, highlight. social and cultural experiences. These NAPLAN results were pleasing with experiences allow our students to our students scoring above average achieve to their potential. results in several areas across all years. Our welfare policy caters for the Many educational, cultural and sporting individual needs of our students while opportunities were provided for our at the same time promoting the students in 2009. The Year 6 Tour, the wellbeing of our whole school Year 9 Norfolk Language Camp and community. our annual sporting carnivals exemplify The school provides students with the these experiences. opportunity to achieve excellence in The Arts effort, achievement, participation and In 2009, students participated in a wide citizenship. Our school aims to be not range of cultural activities. just a member of, but also an Students K-11 took part in the annual exemplary example for, and participant Agricultural and Horticultural Show, in, our community. entering a range of sections including All teaching, learning and painting, drawing, collage, original administration is under the auspices of models, handicrafts, cooking, floral the 1985 Norfolk Island Education Act design etc. They also participated in and all staff are responsible to the Art in the Park which was held at Palm Norfolk Island Minister for Education Glen. The community was very the Hon. David Buffett through the impressed with the quality of work Principal. displayed. Norfolk Island Central School has a All K-6 classes have led assembly current enrolment of 302 students with performances with a range of activities 24 teaching staff. including public speaking, music, 2009/2010 has been a year of dance, drama, poetry and powerpoint significant progress at Norfolk Island presentations. These assemblies are - 58 - well attended by family and community The Sports Presentation evening members. recognised excellence in sport, with a Students have also taken part in successful key note speaker utilised for Community Arts activities throughout student motivation. the year including Poetry in the Park, Other Achievements Mothers Day Talent Contest and Kids Academic for Kids Concert. A number of female In the National Assessment Program, students are members of dance groups the results across Years 3, 5, 7 and 9 that regularly perform for visiting literacy and numeracy assessments are tourists and dignitaries. reported on a scale from Band 1 to K-2 students performed Christmas Band 10. Carols at Government House and for The achievement scale represents senior citizens and the wider increasing levels of skills and community. understandings demonstrated in the The mentor program for performing assessments. arts was continued this year with an • Year 3: From Band 1 (lowest) to increased number of participants. Band 6 (highest for Year 3); Students were mentored in singing, • Year 5: From Band 3 (lowest) to dance, piano, guitar and drama in a Band 8; weekly after school program. This • Year 7: From Band 4 (lowest) to culminated with a performance for Band 9; parents at the end of the year. • Year 9: From Band 5 (lowest) to Sport Band 10 Elective sport studies students and In the School Certificate (SC) and several staff undertook the Australian Higher School Certificate (HSC) the Sport Commission coach training and performance of students is reported in gained community coach status. performance bands ranging from Several students gained paid Performance Band 1 (lowest) to employment via the ASC program. Performance Band 6 (highest). This program worked in the areas of Significant Programs and Initiatives triathlon, tennis, aquatics and cricket. Norfolk Language and Culture Elective sport studies students worked The Norfolk Language and Culture with K-2 students in their motor skills Programs continue to function in Years development program. K-9. Outstanding participation rates Norfolk Language has been approved occurred in three major carnivals, with as the Language Other Than English around 95% attendance. Community (LOTE) for Year 7 and is being support was excellent and included the effectively delivered by the community continued financial support for speaker supported by the LOTE trophies. teacher. A local Norfolk language Students travelled off island for speaking teacher delivered Norfolk participation in netball, rugby league, Language during Relief Face to Face athletics and tennis and staff members (RFF) in the Infants/Primary. The Year to world age netball and triathlon 9 Language Camp ran successfully for championships. three days with the input of some 32 Thirty students participated in the community members. annual Around the Island Relay which Students were encouraged to enter covers some 25km of Norfolk Island. - 59 - Norfolk Language entries in the annual recommended and taught to A&H Show and Poetry in the Park students so that staff can integrate events. The integration of the Norfolk them into lesson plans and language has continued to be supported reinforce them with students; by the Assessment Resource Council • A modified version of The Rock (ARC) project managed from Adelaide and Water program is being University. delivered to Year 7 and 8 to Literacy promote self esteem through self As indicated elsewhere, targets were control, focus and goal setting. met in NAPLAN, School Certificate Once this program is trialled and and Higher School Certificate English refined it can become part of the results. Year 6 into 7 transitional program. Enhanced use of scaffolding, modelling Other Programs and a focus on analysis of quality • A focus on enhancing student writing has supported student Information & Computer achievement in Literacy. Involvement Technology (ICT) skills across K- of 5-9 English classes in the Red Room 12; Project further developed this focus. • A focus on literacy and numeracy Emphasis was given to the integrated being inclusive in all teaching and teaching of grammar, spelling and learning programs across the K-12 metalanguage. Student work was continuum; published through the Toilet Door • The school’s Support Teacher Project, local Show, Bounty Day and Learning Assistance Program was Foundation Day competitions and refined to give an increased Poetry in the Park events. number of students access to Two Secondary English teachers took learning assistance; Year 6 one period a week for literacy • The DET North Coast development. Mathematics Program was Learning and Study Skills implemented in all K-6 classes; Learning and study skills and • The establishment in the Norfolk competencies have been embedded in Island Central School Library of all teaching programs across the K-12 the Norfolk Island “Living continuum. Library”. This valuable resource The following strategies have been will enhance the ability to preserve adopted: Norfolk Island history, heritage • A study skills program to Year 12 and culture; is focussing on effective and time • Participating in Foundation Day efficient study; poster and writing competitions, • The 10% on top mentoring the ANZAC Day competition and program; other community sponsored • Surveying 7-12 students and Stage activities. 3 students to identify preferred Vocational Education and Training learning styles to develop into In 2009 Norfolk Island Central School information to staff; offered Hospitality and Information • A powerpoint presentation for staff Technology at school and Retail, has been placed on the school Tourism, Business Services and Child intranet, outlining study strategies Studies via Distance Education through

- 60 - the Open Training Education Network Target 3 : Connected Classsroom (OTEN) and Tamworth TAFE. Our achievements include: A wide variety and large number of • Interactive whiteboards were businesses have been involved in introduced into the school; workplace learning and the • Our computer replacement development of employment related program continued; skills. Students have been involved in • New computer software was meaningful and useful work as their purchased. experience and proficiency developed. Target 4 : Learning and Study Skills Progress on 2009/2010 Targets Our achievements include: Target 1 : Literacy • Time-tabled Year 11 study Our achievements include: periods; • All NAPLAN, and the majority of • Specific learning and study skills School Certificate literacy targets, included in teaching and learning being achieved; programs. • The development of “stage” In 2009 the school undertook key spelling and metalanguage lists; evaluations in the areas of: • Quality teaching literacy programs • Teacher professional learning; embedded across K-12. • Information and communication Target 2 : Numeracy technology; Our achievements include: • Parent, student and teacher • Years 3, 5, 9 & 10 Numeracy satisfaction. targets were achieved; • The North Coast K-6 Numeracy Program was implemented; • Years 7 & 8 Mathematics programs were reviewed and revised.

- 61 - ENVIRONMENT & INFRASTRUCTURE PUBLIC WORKS six monthly basis. The Works Depot is a multi-functional • Mechanical repairs are carried out department and is responsible for the as required to a high standard. construction and maintenance of • Engineering and metal fabrication Administration buildings (except is carried out for a variety of KAVHA), construction and projects as required. In the past maintenance of the island’s road this has included cattle grids, and network, maintenance to all grounds fenders for Cascade Pier. and public places (except KAVHA), • Vehicle detailing – a number of Quarry and Weighbridge, the landing vehicles are detailed on a places at Kingston and Cascade, and fortnightly basis. also carries out arrangements for • Panel beating and spray painting – burials. all vehicles are inspected twice The Works Depot team is led by the yearly for corrosion and Manager Public Works who is deterioration of paintwork. Any accountable to the Chief Executive defects found on the vehicles are Officer. Mr Justin Reynolds has been promptly repaired to extend the acting as Manager Public Works since life of the vehicle. October 2009. The Section undertook during the year: All sections of the Works Depot – • Routine maintenance and servicing Roads, Building Maintenance, Grounds of plant, vehicles (148) and & Public Places, Mechanical, Stores equipment (31); and the Quarry, are overseen by a • Improved recording of all respective foreman. mechanical section data on The duties of the Manager Public computer; Works are to establish and maintain a • Streamlining of service schedule, regime for the continuation and improving productivity; effective response to all enquiries, • Successful apprentice training; manage resources effectively and • Rebuilding of Roads grader – A20; prudently and be flexible and • responsive to government policies and Convert A81 Mazda T3500 to community needs. tipper. Total staffing at the Works Depot BUILDING MAINTENANCE SECTION nd consists of 23 full time officers and 3 Staff: 4 full time; 1 apprentice (2 apprentices. year) The Building Maintenance section is MECHANICAL SECTION Staff: 4 full time; 2 apprentices (2nd responsible for the construction of new and 4th year) buildings and improvements to existing The mechanical staff carry out a broad buildings in accordance with plan range of duties across all departments specifications and building codes. The of the Administration, these duties section is also responsible for include: maintenance and repairs to Administration buildings and properties • Preventative maintenance – a (except KAVHA) and to provide the thorough preventative maintenance community with assistance for burials. program is carried out on all vehicles, plant and equipment on a - 62 - During 2009/2010 the Section ROADS SECTION undertook: Staff: 8 full time • Renovations and closing in In addition to the normal cyclic verandah at the Visitors maintenance undertaken, the Roads Information Centre; staff have been busy with the • Construction of 15 coffins and following: arranged burials; • Moving Roads staff and their plant • Apprentice worked with contractor and equipment to the Metal on new school room being built to Compound at the Airport; gain experience; • Sign/guide post maintenance; • Improved computer recording of • Road patching; all work carried out in different • Culvert maintenance; Administration areas by • Trialing of slurry for road Building/Maintenance. surfacing; PAINTING SECTION • Improved computer recording of • Painting of main office at the all road works carried out. Works Depot; The following works were completed • Sanding and painting of Rawson in 2009/2010: Hall foyer and mens toilet area; • Upgrade and sealing of Duncombe • Painting interior and exterior of the Bay Road; Visitors Information Centre; • Upgrade and sealing of Youngs • Purchase of a new airless spray Road which will vastly improve work • Removal of oak tree, carting of output; hardfill, sealing of entrance and • Repaint two classrooms at the maintenance on Little Green Lane; school; • Placing of traffic island at T- • Internal repaint of the airport intersection and road maintenance terminal; of Country Road/Longridge • Painting of road markings island- Road/New Farm Road; wide. • New car park area at the Lions GROUNDS & PUBLIC PLACES SECTION Park; • Staff: 4 full time Placing of 2 culverts on Grassy • The responsibilities of the Grounds Road with 90 metres (15 lengths x section are primarily the upkeep 6 metres long) of pipe; • and maintenance of all grounds Removal of dirt pile from the and public places to a high Radio Station paddock so that standard; fencing of the area and planting of • Refurbishment to gardens, fruit and native trees can take plantings and picnic areas place; • including Puppy’s Point and Erected the marquee once and Anson Bay Reserves; auxiliary tents on 3 occasions; • Continued maintenance to the ANZCAN Station, Bicentennial Centre, portion 44a stockpile and Waste Management Reserve.

- 63 - • Building and painting of caravan Purchase Orders: for staff usage when major road works are commenced at Hibiscus 3500 Drive; • Undertook ship carting duties for 3000 both the New Zealand and Australian ships; 2500 • Resurfacing of netball courts at the school; 2000 • Curb and guttering at Martins Road – private job for resident 1500 living on the road. of Orders No. 1000 ADMINISTRATION STORE The Administration Store (Purchasing Department) is a section of the Public 500 Works Department. The Store currently has one full time and two 0 temporary staff members. 02/03 09/10 The Administration Store is responsible 01/02 03/04 04/05 05/06 06/07 07/08 08/09 for the procurement, receipt, Financial Year maintenance, costing, preliminary payment action and issue of all stores • The Purchasing Department raised and equipment to meet the day-to-day 2,802 purchase orders in 2009/2010. operations of all sections of the • Stock holdings within the Administration. In its logistical Administration Store have increased support operations the Store is required from 6,978 line items in 2007 to to adhere to the Public Moneys Act 7,297 line items at the end of 1979 . 2009/2010. The service provided by the • There was a total of 13,510 over the Administration Store has increased counter issues in the 2009/2010 significantly over the past several financial year ($432,391.57 worth of years, however due to current stock). economic conditions, growth patterns have stabilized. The following Store statistics display the growth of customer service in the performance of its role.

- 64 - Stock Value on hand as at 30 June The Lighterage Section employs 2010: twenty-three contract workers and one Sections Total Value security officer. The full time Service Airport $ 653.23 Manager is responsible for maintaining Electricity $176,486.85 all lighterage equipment plus Fire Service $ 2,598.90 supervising discharge operations. Forestry $ 18,555.02 Lighterage continues to focus on the General $409,403.53 discharge and back-loading of cargo vessels and cruise ships and will KAVHA $ 23,745.35 continue to carry out ongoing Lighterage $ 63,234.42 maintenance of all launches, lighters, Roads $ 43,348.11 trailers and all other equipment, e.g. Stationery $ 53,748.50 cargo nets, wire slings etc. Telecom $ 95,269.61 The Lighterage Service continues to Vehicles $ 19,825.68 implement OH&S and HR policies. Waste Management $ 5,878.23 During the year the Norfolk Guardian TOTAL: $912,747.43 was the sole cargo ship to discharge Many Stores processes continue to be cargo at Norfolk Island. streamlined to allow a more efficient The Norfolk Guardian made 8 voyages work place. from Yamba (Australia) and 8 voyages The Administration Store minimises from Auckland (New Zealand). freight charges with reliable freight Days worked at Kingston 7 consolidation services from Australia Days worked at Cascade 25 and New Zealand. This service has Days unsuitable for unloading 35 improved stock arrival times and Number of vehicles imported 94 reduced costs. Total Cargo Imported: LIGHTERAGE • Lighterage activities are regulated by 5,344 tonnes • the Lighterage Act 1961 . The 13,518 cubic metres responsible Minister is the Minister for The cruise ship Pacific Sun made 4 Tourism, Industry & Development. voyages from Auckland, New Zealand The purpose of the Lighterage Act is to and discharged passengers once at control the discharge of cargo to and Cascade and once at Kingston. The from Norfolk Island. The Act weather was unsuitable to discharge determines who can be involved in passengers for the last 2 voyages. loading and unloading of cargo ships. LAND USE & ENVIRONMENT The Lighterage Section is responsible The Land Use and Environment Branch for the following assets: is responsible for managing the natural • 3 launches and built environment of Norfolk • 4 lighters Island. This is achieved through a wide • 2 mobile cranes range of services, including • 1 forklift truck management of the island’s sewerage • 1 x 4WD vehicle and household waste, providing an • 1 x Pontoon effective quarantine service, exercising as well as storage sheds, workshop and control over the use and development workshop equipment. of privately owned land, promotion of projects aimed at protecting and

- 65 - enhancing the natural environment, and • Muster management of stock health. Muster of cattle on public/common The Branch includes: areas occurs twice a year, in April and • Manager September. Leading up to the April • Waste Management Centre 2010 muster a proposal was put • Health, Building and Quarantine forward by a cattle owner who offered section to donate materials for the construction • Stock inspectorate (under contract) of a stock yard on crown land at Anson • Planning office; and Bay. Approval was granted for this • Environment office construction and the yard was The Planning Officer has been acting completed prior to the April 2010 manager of the Branch since 2008. muster. The yard will reduce the Two Ministers are responsible for the distance and time required for cattle in range of services provided by the Land the Anson Bay area to be mustered for Use & Environment Branch – The tagging and drenching. Works have Minister for Tourism, Industry and also been carried out recently to Development, the Hon. Andre Nobbs improve the cattle crush infrastructure MLA (agriculture and horticulture), at Kingston and Mission Pool and the Hon. Timothy Sheridan MLA Paddocks. (all other areas). • Bovine Viral Diarrhoea Virus Operations (BVDV) • Stock Inspector BVDV is a serious health issue for In August 2009 Mr Dene Snell cattle and is spread by close contact commenced a contract to provide a between cattle. It may be possible (but stock and noxious weeds service for the unlikely) that it can be passed from Administration. The contractor is cattle to sheep. 72% of cattle tested on required to undertake a number of Norfolk Island in April 2009 were statutory roles, primarily in managing found to be BVDV anti-body positive, stock, attending to slaughters and although a positive result does not organising a muster of road cattle twice necessarily mean that an animal is per year. Dene Snell employs Simon currently infected – it could mean that Bigg, who is appointed to act in the the animal has been infected at some same capacities in Dene Snell’s time in the past and that it has built up absence. immunity. • Pasturage Rights A program to eradicate BVDV on Pasturage rights are issued for 12 Norfolk Island is expected to month periods, commencing 1 April commence in August 2010. • each year. The pasturage rights for the Argentine Ants year commencing 1 April 2010 were The treatments carried out during the granted by the previous Minister for the summer of 2008/09 were mostly Environment and gazetted. The successful, but remnant populations number of cattle approved to be on still exist and further surveys have been common areas has dropped slightly carried out to determine the actual from 292 to 282 (plus calves), with extent of remnant populations. After consideration given to the dry mapping the ant populations, FBA conditions and poor state of pasture at Consulting produced a report and that time. proposed budget for their next - 66 - recommended steps, starting with Manager Land Use & Environment and further baiting in late summer/early the Health Building & Quarantine autumn 2010. Some further baiting section. was carried out at Hundred Acres Toon Trust Round Three Reserve before the cooler weather The Round Three projects awarded in prevented further treatment until late December 2008 were all completed 2010. The Norfolk Island Government during the 2009/2010 year. has allocated funding for the survey Toon Trust Round Four and treatment program to recommence Round Four projects were awarded in in late 2010. An application has also January 2010. These projects are as been made to the Commonwealth for follows: funding under the Caring for our 1. Geoff Gardner – Leaky Weir Country program to assist with the System eradication of Argentine Ants. Geoff’s Cascade Road property • Audit of Water Assurance includes a normally dry valley. During Scheme periods of heavy rain the valley An allocation has been made in the becomes a major water channel, 2010/2011 budget for an audit of the causing erosion and as there are few integrity of the Water Assurance natural barriers, there is little Scheme infrastructure, some of which opportunity for found water recharge. is now 20 years old. The water runs to Cascade and is ENVIRONMENT discharged into the ocean at Cockpit. The Environment Office undertakes a A natural spring downstream becomes diverse range of functions within the silted when this water flows. Administration including: A series of leaky weirs will be • Developing strategic frameworks constructed to slow the water, thus to address environmental issues reducing erosion, recharging that affect Norfolk Island, groundwater, reducing the silt level in including quarantine related the spring and improving the quality of matters, water and wastewater water that discharges into the ocean. management, waste issues and Gums and Silky Oaks on the property sustainable management of will be harvested for use in the project. Reserves; Introduced tree species will be • Project management of gradually removed and native trees will Commonwealth funded be reintroduced to ensure a transitional environmental projects; habitat is maintained. • Development of funding 2. Tea Pot Gardens – Kaye Woods applications for the Administration – Sustainable Water-wise Garden and members of the community; The aim of the project is to create a and sustainable water-wise garden at a • Reporting on the Ivens (Toon) property on Mission Road, Buffett Environmental Fund. representative of the local biodiversity The position of Environment Officer that can be showcased to the has been vacant since April 2010, and community and visitors. It is envisaged tasks in the Environment area have that the garden will provide been covered by the Executive Director opportunities for interpretation, Corporate & Community Services, the education and social activity. The - 67 - interpretive garden displays local plants – valuable basis for informing and provides information on how biodiversity conservation residents can incorporate these plants management decisions on Norfolk into their own gardens. Island; and 3. Brian O’Connor – Restore • Hard copy publication will enable Native Vegetation/Habitat distribution within the Norfolk The aim is to replant three acres of Island community, school, library grazing land with native species, and Assembly/Administration, as primarily pines and white oaks, well as key overseas agencies, restoring the natural habitat and libraries and researchers. reducing the possibility of erosion. The 6. Norfolk Island Flora & Fauna land adjoins areas of natural vegetation Society – Establishment of a Flora & and is part of the Watermill catchment. Fauna Website 4. Cromer Natural Spring and The benefit of a dedicated website will Environment – Restore Native include: Vegetation/Habitat • Providing the opportunity for Yvonne Grube and Corinne Parsons information about Norfolk Island property has a natural spring which flora and fauna to be widely feeds Cockpit Waterfall along with dispersed; many natural waterlands and native • Publication on the website of the vegetation. The Cromer spring and results of the 2005 bird survey environs consist of native flora and facilitated by the Flora & Fauna fauna including the owl. The native Society; flora is being overtaken by gum trees. • The site being regularly updated It is proposed to top the gums and then with information about Norfolk remove them and re-establish native Island environment and biota and plants. the Society’s activities; and 5. Norfolk Island Flora & Fauna • Monthly updates on matters of Society – Publication of 2005 Bird environmental interest in the Survey region. This is the first of two successful Commonwealth Funded Environmental applications by the Flora & Fauna Projects Society. The publishing of the 2005 • Glass Recycling Bird Survey facilitated by the Society A glass crushing machine has been will have the benefits of: purchased, and all glass delivered • Providing access to quality data on to the Waste Management Centre the status of birds of Norfolk is now being crushed into a Island gathered by the 2005 bird product that can be re-used for survey, facilitated by the Flora & various purposes, including as a Fauna Society in conjunction with substitute for sand, reducing the the Administration of Norfolk reliance on taking sand from Island and Australian National Cemetery Beach. Glass is no Parks & Wildlife Service; longer being dumped into the sea • 2005 Bird Survey data will enable at Headstone. This project was comparisons with 1978 Royal finalised this year. Australasian Ornithologists Union (now Birds Australia) bird survey

- 68 - • Toon Trust Round Four • Dangerous Drugs Act 1927 All Round Four projects were over • Customs Act 1913 50% complete as at 30 June 2010, • Water Assurance Charges Act except for the Flora & Fauna 1991 Society’s website. Operations • Argentine Ant Eradication • 89 Sale of Food Licenses were The Administration has applied to issued and their operations and the Commonwealth, through the standards monitored. Caring for our Country Program, • Quarantine staff attended for funding to assist with the approximately 592 RPT passenger, eradication of Argentine Ants on military and private aircraft from Norfolk Island. The proposed Australia, New Zealand and other funding would facilitate the international origins. There were resources and expertise necessary approximately 30,897 passenger to survey and bait all known arrivals and 319 tonnes of air Argentine Ant colonies on Norfolk cargo. There were 16 cargo ships Island for a 2-year period. with approximately 5,344 tonnes HEALTH , BUILDING & QUARANTINE of mixed general cargo. There The Health, Building and Quarantine were also 4 bulk fuel tankers, 3 Service operates to protect the Island’s bulk gas tankers and 30 yachts. biodiversity, environment and the There were also 7 cruise ships with community’s public health through the 3633 passengers. Officers assisted implementation of legislation listed with passenger and air cargo below. Officers in this Section are processing to ensure compliance responsible for and are governed by: with quarantine requirements. • Public Health Act 1996 Inspections of ships crew and • Sale of Food Act 1950 (licensing cargo were undertaken for and food standards) compliance with public health and • Health Act 1913 (septic tanks, quarantine requirements. Items water quality, etc) not complying were required to be • Health Regulations treated before release. • Sale of Tobacco Act 2004 • 47 building approvals were granted (licensing and compliance) with varying numbers of progress • Environment Act 1990 inspections undertaken. • • Plant and Fruit Diseases Act 1959 Planning and costing for sewer • Animals (Importation) Act 1983 extension in Pitcairn Place and the • Stock Diseases Act 1936 Shortridge area. Installation of the  Approvals and monitoring of all Pitcairn Place sewer infrastructure imports covered by the above. commenced, and these works will be completed in 2010/2011. • Building Act 2002 (approvals and • compliance) The effluent tanker drop-off point was relocated and the new facility • Planning Act 2002 (compliance) will allow the sludge and effluent • Planning Act 2002 (Monitoring from across the island to be added and enforcing controls and to the sewage treatment plant at a conditions) • sustainable rate. This project was Weights Act 1926 funded by a Natural Heritage Trust - 69 - grant to improve the efficiency of unauthorised developments and the waste water treatment plant land uses. and therefore improve outfall The following relevant legislation is water quality. administered or referred to by the • A program to test water quality of Planning Office: creeks and bores across the island • Planning Act 2002 was reactivated. Sampling • Norfolk Island Planning and includes both bacterial and Environment Board Act 2002 chemical levels. The equipment • Planning Regulations 2004 used for chemical analysis was • Norfolk Island Plan 2002 updated with Natural Heritage • Building Act 2002 Trust funding. This funding is to • Building Regulations 2004 allow for the monitoring of water • Roads Act 2002 quality flowing from the Town and • Subdivision Act 2002 Watermill Creek catchments into • Heritage Act 2002 Emily and Slaughter Bays. • Heritage Regulations 2003 • An additional 6 areas were • Environment Act 1990 identified as being infested with • Argentine Ants, and these areas Land Titles Act 1996 • were surveyed and mapped. Only Surveys Act 1937 • 2 new areas were treated. No Tourist Accommodation Act 1984 existing or pre-treated areas were • Tourist Accommodation subject to follow-up treatment Regulations despite infestations still being • Public Health Act 1996 present. The company Flybusters • Administrative Review Tribunal from New Zealand continued to Act 1996 provide advice and supply bait for Operations the treatment of infestations. Staffing PLANNING During 2009/2010, the Planning The Planning Office is responsible for Officer was assisted by a part-time controlling the use and development of Planning Assistant, and another officer land on Norfolk Island. Land uses and had taken on the role of Secretary to developments include buildings, the Planning & Environment Board. earthworks, signage and subdivisions. By the end of the financial year, and as Control is exercised through: a result of the completion of the review • the drafting and proposed of the Norfolk Island Plan, all planning amendment of laws, policies and functions were being undertaken by the guidance that determine what types Planning Officer. The Planning Officer of developments and land uses are continues to also act as Manager, Land allowed in different parts of the Use & Environment. island; Review of the Norfolk Island Plan • the assessment of applications for A comprehensive review of the Norfolk permission to develop and use land Island Plan was finalized and approved in accordance with established by the Legislative Assembly on 3 laws, policies and guidance; March 2010, and the amendments • the enforcement of decisions made became effective on 12 March 2010. on applications and against The amendments cover a wide range of - 70 - changes, including opening up the subject of applications to the possibility for tourist accommodation Administrative Review Tribunal. The in rural and rural residential zones, other 3 applications are recent increased flexibility in building (submitted in 2010). setbacks to property boundaries, • The average time taken to process elimination of “split zone” properties, the 10 most recently submitted and and a wider range of developments determined “permitted use” exempt from requiring planning applications was 1.7 days, and all permission. The next comprehensive such applications had been review of the Norfolk Island Plan must determined within the statutory commence by 2015. time requirement; Preparation of Development Control • The average time taken to process Plan No. 5 (Airport) the 10 most recently submitted and Preparation of a Development Control determined “permissible with Plan (DCP) for the airport had been consent” applications was 36.7 discussed as early as 2003. Notice of a days, and all such applications had new draft DCP was gazetted in been determined within the January/February 2010, and copies of statutory time requirement. the draft DCP were available for public Review of Application Fees inspection. Following consideration of A proposal to review and simplify the submissions and the recommendation fee schedules for planning and building of the Planning & Environment Board, applications was approved in June 2010 a new DCP No. 5 for the Airport was in the form of amendments to the approved by the Minister for Planning Regulations 2004 . The new Community Services in April 2010. fee schedule more accurately reflects The new DCP provides more detail on the true cost of assessing different how the airport land will be managed types of applications. and developed into the future. WASTE MANAGEMENT SERVICES Development Applications Managing waste in isolated During the 2009/2010 financial year, communities such as Norfolk Island 25 “permitted use” applications and 28 poses significant challenges as many of “permissible with consent” applications the conventional solutions used on the were received. The number of mainland are not feasible in this unique applications is roughly equivalent to island environment. recent years, although the number of Argentine Ants applications started to drop off towards The discovery of Argentine Ants at the the end of the financial year, partly as a Waste Management Centre (WMC) has result of a slower economy and partly resulted in the temporary cessation of as a result of amendments to the mulch distribution and sales. Norfolk Island Plan which increased Processing of green waste to produce a the range of developments that no mulch product is an integral part of longer require planning permission. A waste management on Norfolk Island total of 6 new residences were and it is hoped that this pest will be approved during 2009/2010 (one being successfully eradicated from the WMC a dual occupancy). At 30 June 2010 in the near future and normal there were 6 outstanding development operations will resume. Mulch is applications, 3 of which were the currently stockpiled adjacent to the - 71 - WMC. charge to the public for reuse for a Burning of Waste range of other purposes. This year has brought ongoing bad Asbestos weather leaving limited opportunity for One of the priority waste management regular burning of waste material at issues on Norfolk Island is the handling Headstone. This has resulted in the and disposal of asbestos. During the loss of 26 days of burning which past 12 months an island wide policy sometimes requires the household framework has been implemented waste to be accumulated inside the based on a ‘user pays’ model to ensure WMC Shed for periods of time which the safe handling, disposal and future raises numerous public comments in management of this hazardous regards to the stench generated by the substance. stockpile. Staffing Glass Crusher To allow for a more stable and reliable Within the last year the WMC has workforce, 4 “Plant Operators” have commissioned the H100-VT Glass been appointed to the Waste Crusher which was purchased with Management Centre on performance Commonwealth funding. The Works based contracts, which provides these Depot is currently using the aggregate staff members with the majority of the produced from this resource as a road benefits afforded to permanent public base for their road maintenance service employees. program. It is also available free of Operations Approximate figures on all forms of waste delivered to the Waste Management Centre and processed between 1 July 2009 and 30 June 2010: Household refuse dumped/burnt 910 tonne Glass dumped 90 tonnes Glass crushed 70 tonne Aluminium cans processed 12 tonne Truckloads of timber waste dumped/burnt 110 Builders waste dumped @ Headstone by appointment 550 loads Truckloads of steel waste dumped 30 Motor vehicles burnt @ Headstone and Airport Drills 38 Truckloads whitegoods dumped/burnt 28 Steel cans shredded/dumped 14 tonne Household food scraps dumped 135 tonne Aerosols decentered/dumped 1 tonne 750ml soft drink bottles collected for resale 2550 @ $0.25 per bottle 300ml soft drink bottles collected for resale 1810 @ $0.10 per bottle Vehicle batteries collected/prepared for shipping 4 tonne Burning days lost due to unfavourable conditions 26 Mulch produced as a result of green waste processing * 1550m3 Mulch sales Nil (sales suspended) Cat eradication program ** 15 (6 adult, 8 kittens) * The volume of green waste delivered to the WMC is not monitored. ** Cat eradication program funded by NI Cat Welfare Society & NI Veterinary Clinic. - 72 -

RESERVES AND FORESTRY SERVICES Tail) and Coral Berry in Hundred The Conservator of Public Reserves is Acres Reserve; responsible for the management of all • Habitat development, revegetation public reserves in accordance with the and beautification of picnic areas Plans of Management, subject to with native species in Anson Bay, directions that may be issued by the Hundred Acres and Two Chimneys Administrator ( Public Reserves Act Reserves; 1997 ). Reserves and Forestry Norfolk • Erosion control and revegetation at Island manages approximately 225ha Point Ross Reserve; of public reserves, 34ha of other public • Argentine Ant control – Hundred lands and 130ha Forestry Zone within Acres Reserve; the National Park. • Support of Norfolk Landcare Reserves and Forestry Norfolk Island Group activities in Cascade also operates the Administration’s Reserve. timber treatment (tanalith) plant; is Forestry responsible for issuing permits to take • Maintenance of forestry protected trees ( Trees Act 1997 ) and plantations and re-vegetated areas provides conservation and forestry in the Forestry Zone of the management advice to the Norfolk National Park and other public Island Government and the public. The lands; Reserves and Forestry nursery, which • 53 permits were granted under the is shared with the Norfolk Island Trees Act 1997 to remove 115 National Park, produces native plants protected trees on private land. for public and private forests and Nursery gardens. • Nursery maintenance, seed During 2009/2010, prior to the collection, plant propagation and Legislative Assembly election, the plant sales. executive member with responsibility Timber Treatment Plant for the environment was the Hon. • 514.13m timber treated, providing Stephanie Jack (Minister for a gross income of $60,368.29. Environment, Education and Social NORFOLK ISLAND AIRPORT Welfare), and after the election, the As the Aerodrome Certificate Holder Hon. Timothy Sheridan (Minister for the Administration of Norfolk Island is Community Services). responsible for safe and secure During the Year: operations at the Norfolk Island Public Reserves Airport. • 25 permits were issued for At the present time, the airport controlled activities in public facilitates 8 regular public transport reserves such as camping, (RPT) operations per week from research, commercial activities Auckland, Melbourne, Sydney and such as walking tours and Brisbane. The largest aircraft regularly barbecues, and community utilising the Norfolk Island Airport is activities; • presently the Air New Zealand Airbus Continuing weed control, A-320. The level of general aviation including efforts to control and traffic has reduced to a level below last eradicate Madeira Vine (Lambs year’s average per annum of 2.0 - 73 - arrivals a week. into service in November 2008. The Norfolk Island Airport maintains Fire Station an enviable safety record and remains Work on the new fire station (also at all times fully compliant with the referred to as the Emergency Services relevant legislation. Centre) is now complete. The building The financial year 2009/2010 has been is also used by a number of groups a year of consolidation and finalisation including the Volunteer Rescue of projects at the Norfolk Island Association. Airport. Other Runway End Safety Areas (RESA) The repainting of the piano keys and Construction of the Runway 29 end touchdown zones on the main runways RESA (Runway End Safety Area) has (29 & 11) are programmed to commenced with the project being commence in the first months of the managed in-house by the managers of new financial year. The painting works the Airport and Works Depot and will be completed by a motorised spray which utilises exclusively local machine as is required to the grooved contractors. nature of the runway. The grooves in The area below DCA Circle known as the runways provide a much safer Duck Hill was excavated to provide a surface for aircraft to land on in rainy clear line of sight from the new fire weather. It makes the aircraft brakes station observation room to the more effective and therefore safer. threshold of Runway 29. This clear NORFOLK TELECOM line of sight is a requirement of the Norfolk Telecom provides the Norfolk Civil Aviation Regulations and was one Island community with carrier grade of the key reasons behind selection of telecommunications services ensuring that particular site for the fire station. reliability and quality. The airport is presently on an Norfolk Telecom falls within the exemption from meeting the new portfolio of the Minister for Tourism, RESA standard for Runway 29. It is Industry & Development, the Hon expected that the works on Runway 29 André Nobbs, and operates under the RESA will be completed by the time of Norfolk Island Telecommunications Act the exemptions expiry. 1992 . Terminal Works The major elements of the Norfolk The new Customs offices at the arrivals Telecom current services and hall are nearing completion. The infrastructure consist of: offices consist of storage space and • Fixed line telephone utilising search rooms. Finalisation of these copper twisted pair cable and optic works is programmed to occur when fibre; Administration tradesmen complete • Primary and secondary Satellite their current works at the Norfolk Earth Stations; Island Tourist Bureau. • GSM mobile switch including 8 Work on the baggage area was remote base stations and 2 micro completed in September 2008. These cells; works were entirely funded by the • Central public exchange, which Commonwealth and were necessary to switches international as well as house the new automatic explosive national traffic; detection x-ray equipment that came • Broadband internet connection - 74 - (Asynchronous Digital Subscriber Internet Hotspot Network to a Line [ADSL]); higher commercial level was • ISP (Internet Service Provider); undertaken. Additional Hotspot • Online Telephone Directory for Venues have been established and up-to-date White and Yellow Wireless Internet is now available Pages; at most cafés, clubs, hotels and • Telephone enquires, account accommodation houses. This enquiries and local directory Telecom initiative allows visitors assistance; and residents alike to purchase • Provision of PABX services to prepaid vouchers and access the businesses and accommodation internet via their laptops at various houses; Hotspot locations around the • Emergency communications as per Island. the Norfolk Island Disaster and • Upgrade Underground Cable – Emergency Management Plan; Red Road • Provision of monthly billing for The cable supplying this area had services. reached saturation and was During the year the following occurred: replaced with an underground 100 • Installation of GSM Alarm pair grease filled copper cable. • Systems Upgrade Bandwidth for ADSL Installation of the GSM Alarm Services System at Norfolk Telecom, the ADSL service plans were Radio Earth Station and ANZCAN upgraded to provide faster to facilitate the monitoring download/upload speeds, higher equipment. When the GSM alarm bandwidth and free data periods system is triggered it sends a were introduced to the community predefined SMS message alert to to better suit the growth and Telecom technicians. utilization of the system and the • Installation of two additional old dial-up service was RBS Cells decommissioned. • To improve GSM signal coverage, Introduction of International two additional RBS cells were Roaming installed at Cascade Road and Introduction of inwards Rocky Point Road, bringing the international roaming has been total to eight RBS cells established for Telstra mobile strategically located around the phones. Roaming agreements are Island. also in place with Vodafone and • Replace Digital Cross-Connect the testing phase is almost Replacement of the Digital Cross- finalised. Optus is still to finalise Connect at Norfolk Telecom to their contractual arrangements. • significantly enhance the overall Upgrade of Middlegate ADSL flexibility and reliability of DSLAM Norfolk Island international An upgrade to the Middlegate connectivity. ADSL DSLAM was carried out as • Upgrade of the Wireless Internet it had reached saturation point. Hotspot Network The upgrade allows for future A total upgrade of the Wireless connectivity. - 75 - • Relocation of Telecom information to the community as well Machinery / Equipment as being the entertainment medium As the old Telecom shed on New through the use of music, news and Cascade Road was sold, all events. The Station has developed Telecom machinery and equipment from a five minute broadcast when had to be relocated into new ships or aeroplanes were due, through premises at the Works Depot. to a 24-hour FM and AM service. The • Introduction of Promotional radio broadcasts death notices, Landline Charges Legislative Assembly meetings, A new landline charge was community news notices and events, introduced to allow for political forums, training for entry into promotional specials to be offered radio media, sports events, community to the community throughout the shows, Christian broadcasts, year. international news, as well as providing • Completion of Works Associated most genres of music at some time each with Fibre to the Node week. Radio Norfolk has a sponsorship Technology scheme which is used to fund the Underground cabling around the Station’s equipment improvements, Island is now complete. music and programmes not provided in Introduction of FTN (fibre to the the normal budget process. node) technology will allow In 2009/2010 the Broadcasting Service: Norfolk Telecom to provide high • Designed and installed systems for speed broadband to its customers. digital satellite broadcast of all Subscriber Statistics: available radio and television Type of Service July 2010 services. • Telephone connections 1,645 Arranged outside broadcasts from Leased Circuits 154 community events including the GSM Operational SIMs 1,498 school swimming carnival, the Norfolk Island Country Music Faults Recorded 811 Festival, the school’s athletics IDD Subscribers 1,415 carnival, the jazz festival, as well Connected as paid broadcasts from sponsor’s ADSL Subscribers 667 premises. Connected • Continued with the Youth Radio Telephone Services 89 Training Programme for school Relocated students. The latest intake is from Work Orders 4,725 the early secondary section of the Undertaken school. Currently we have BROADCASTING SERVICE students from Years, 7, 8 & 9. The Broadcasting section is responsible NORFOLK ISLAND ELECTRICITY for all of the radio and television Norfolk Island Electricity (N.I.E.) is transmissions including Radio Norfolk, included in the portfolio of the Minister all of the ABC radio stations, ABC for Tourism, Industry & Development. television, Imparja television, Central 7 N.I.E. is responsible for the generation television and SBS television including and reticulation of electricity the new digital services. Radio Norfolk throughout the island within the (VL2NI) is the main provider of instant requirements of the Electricity Supply - 76 - Act 1985 . N.I.E. uses Australian at the Ball Bay and airport standards AS/NZS 3000/2007. facilities; There are 6 main generators and 6 • Distribution of products from Ball standby units in the powerhouse, all Bay and the airport. This maintained by N.I.E. operation is sub-contracted; N.I.E. is also responsible for electrical • Maintenance of facilities at Ball maintenance to all Administration Bay and the airport in accordance buildings, reticulation lines and the with the technical services Norfolk Island Airport. agreement with Exxon Mobil and Solar installations have reached about the airline and CASA audits. 900 kw. Consumers who produce There were 4 fuel tanker visits to electricity in excess of their needs Norfolk Island during 2009/2010. accumulate credits for future use. Total Deliveries by Sea Tanker In this financial year: Unleaded petrol 1051.5 m/t • Maximum demand was Distillate 1857 m/t approximately 1,700 kw; and 2,200 amps; Jet A1 780.4 m/t • Kilowatt hours generated was Also, 8,000 litres of Avgas were 6,587,667; shipped to Norfolk Island via the • Fuel consumed was 1,778,101 Norfolk Guardian. litres. In 2009/2010 Norfolk Energy NORFOLK ENERGY completed: In October 2007 the ownership, • External and structural operation and management of Coastal refurbishment involving Bulk Terminal (CBT) at Ball Bay and scaffolding erection, water the Airport Bulk Terminal were blasting, grit blasting, welding, transferred from Exxon Mobil to the fabricating and a 4-stage paint Norfolk Island Administration, under process carried out on bulk tank 6 the name Norfolk Energy. Jet A-1 (709,000 litres); tank 5 The Government Minister for Norfolk ULP (94,000 litres); tank 4 ULP Energy is the Minister for Tourism, (56,000 litres); tank 3 Jet A1 Industry & Development. (280,000 litres); and tank 2 ULP The day-to-day operation of Norfolk (280,000 litres). Local tradesmen Energy is managed by the Powerhouse from within the Norfolk Island Acting Chief Mechanical Officer on a Administration and local certified part-time basis. Staff are drawn from contractors carried out all work. the mechanical/electrical operations NORFOLK ISLAND FIRE SERVICE & when required for tasks such as tanker EMERGENCY MANAGEMENT discharge. 1 contracted accounts clerk The Norfolk Island Fire Service and is employed to perform all clerical Emergency Management Norfolk functions. Island was established to minimise risk Norfolk Energy has responsibility for by protecting the Norfolk Island the following: community, its infrastructure, assets • Safe transfer of fuel from the fuel and the environment from fire and the tanker discharge flange to the CBT impacts to the community caused by at Ball Bay; major incidents or disasters. • Safe storage of petroleum products Their role is to provide a 24-hour fire - 77 - and rescue service to the Island • Manual Of Operational Standards community and its surrounds. (MOS); The Norfolk Island Fire Service • Tourist Accommodation Act 1984. also provides an Aerodrome The Norfolk Island Government Rescue and Fire Fighting Service Minister responsible for Emergency (ARFFS) to the International Services is the Hon. Timothy Sheridan. Airport for international and The Fire Service also provides domestic commercial passenger inspections, maintenance and servicing, carrying flights. advice and training in all facets of fire The Emergency Services safety, protection and detection in Coordinator is the Officer in accordance with Standards Australia. Charge of the Norfolk Island Fire During the Year: Service and Executive Officer of • The new Emergency Services the Emergency Management Centre on Ferny Lane was Team. completed in early January 2009. These services are provided through the The official opening was following legislation and regulations: performed by the Hon. Neville • Fire Control Act 2000; Christian, MLA on 2 March 2009. • Disaster and Emergency • Fire service operations were Management Act 2001; moved to the new building in early • International Civil Aviation February 2009. Organisation (ICAO) Aerodrome • The Emergency Services Centre is Standards & Recommended now fully operational and houses Practices, Vol. 1, Annex. 14; the Norfolk Island Fire Service • Civil Aviation Act 1988 (Cth) ; (NIFS), the Aviation Rescue and • Civil Aviation Safety Regulation Fire Fighting Service (ARFFS), (CASR 139h); Emergency Management Norfolk Island (EMNI) and the Volunteer Rescue Association (VRA).

- 78 -

25

20 2006/2007 15 2007/2008 10 2008/2009 5 2009/2010 0 AFA Fires Aviation MVA Tsunami Cyclone

AFA: Automatic Fire Alarms Fires: Actual Fires Aviation: Aviation incidents pertaining to aircraft MVA: Motor Vehicle Accidents Tsunami: Tsunami warnings/alerts Cyclones: Cyclone warnings/alerts

• The upgrading of the fire alarm • The Committee trained with other system throughout the Island is agencies around the Australian rim near completion. together with the Joint Australian • Norfolk Island Emergency Tsunami Warning Centre for a Management (EMNI) Committee tsunami exercise called ‘Ausnami’. members in conjunction with the Norfolk Island Administration and community organisations, responded to a tsunami warning in February 2010 which required the evacuation of the Kingston area.

- 79 - INDEPENDENT AUDITOR’S REPORT

- 80 -

- 81 - THE ADMINISTRATION OF NORFOLK ISLAND SUMMARY STATEMENT OF COMPREHENSIVE INCOME YEAR ENDED 30 JUNE 2010

2010 2009 REVENUE Taxation revenue 11,722,813 10,117,872 Commonwealth contribution 634,261 1,105,308 Grants - 34,240 Charges for goods and services 38,175,269 42,044,050 Regulatory fees/levies 2,378,467 2,224,580 Interest revenue 199,613 371,315 Fair values of assets and services donated 82,459 119,900 Fines and penalties 71,964 55,598 Fee revenue from Norfolk Island Government 18,000 - Tourist Bureau Other revenue 927,864 817,631 Total Revenue 54,210,710 56,890,494

EXPENSES Employee benefit expense 10,929,848 10,697,485 Administrative expenses 2,689,826 2,962,069 Advertising and promotion expenses 545,847 454,901 Supplies and services 30,468,468 33,993,082 Grants and subsidies 3,111,754 2,871,305 Duty drawback 248,095 340,482 Ex-gratia refund – photovoltaic 314,753 44,668 Insurance expenses 394,550 379,188 Interest expense 45,102 - Impairment losses 38,586 1,478,061 Other operating expenses 6,929,585 5,541,075 Total expenses (excluding depreciation & 55,716,414 58,762,316 amortisation) Net surplus/(deficit) before depreciation & (1,505,704) (1,871,822) amortisation Depreciation and amortisation (3,256,518) (3,152,356) Net surplus/(deficit) (4,762,222) (5,024,178)

OTHER COMPREHENSIVE INCOME (DEFICIT) Total comprehensive income (deficit) (4,762,222) (5,024,178) These Summary Financial Statements have been extracted from the full Financial Statements dated 4 May 2011. They cannot be expected to provide as complete an understanding as provided by the full Financial Statements. A full copy of the Annual Financial Statements and Audit Report can be obtained from the offices of the Administration of Norfolk Island.

- 82 - THE ADMINISTRATION OF NORFOLK ISLAND SUMMARY STATEMENT OF CHANGES IN PUBLIC FUNDS YEAR ENDED 30 JUNE 2010

Funds held by Government Revenue Business Fund Enterprises Total Balance at 1 July 2008 8,238,673 24,266,796 32,505,469

Total comprehensive income (deficit) (1,078,955) (3,945,223) (5,024,178)

Balance at 30 June 2009 7,159,718 20,321,573 27,481,291

Total comprehensive income (deficit) (454,725) (4,307,497) (4,762,222)

Balance at 30 June 2010 6,704,993 16,014,076 22,719,069

NOTE 26 OF THE FULL AUDITED FINANCIAL STATEMENTS for the year ended 30 June 2010

Going Concern The Government of Norfolk Island has incurred substantial operating losses in the last two years. This is principally due to the combination of on-going losses generated by Norfolk Air and the general decline in tourist numbers. The Government of Norfolk Island has projected that the Administration will run out of free cash to meet its supplier and essential services obligations from June 2011 onwards. The potential deficit is estimated at $1.773 million at the end of June 2011. Overall, the Administration will require $3.942 million injection in funds to meet both normal suppliers and outstanding contractual obligations (including the $1.2 million loan repayment due to the Commonwealth in the 2011 financial year). Consequently the Government of Norfolk Island has sought financial assistance from the Commonwealth of Australia. To assist Norfolk Island and its people, the Australian Federal Parliament on 26 November 2010 enacted the Territories Law Reform Act. Following this, a Memorandum of Understanding was executed between the Norfolk Island Government and the Commonwealth of Australia. A funding agreement with the Commonwealth of Australia was signed on 16 December 2010. Under this agreement, a short term funding of $3.80 million will be received over the six month period ending 30 June 2011 from the Commonwealth as a short term measure to assist the Administration. In February 2011, the Government of Norfolk Island has requested a further $3.20 million from the Commonwealth of Australia, of which $1.80 million was subsequently received. This additional funding will provide the necessary cash flows for the Administration until at least 30 June 2011. The Government of Norfolk Island is continuing discussions with the Commonwealth to source a viability plan for the Island with the objective to attain both long term sustainability and financial stability. Given the above and after due consideration, as the Minister for Finance representing the Government of Norfolk Island and the Administration I am confident that the going concern assumption used in the preparation of these financial statements is appropriate. - 83 - THE ADMINISTRATION OF NORFOLK ISLAND SUMMARY BALANCE SHEET YEAR ENDED 30 JUNE 2010

2010 2009 ASSETS Non-current assets Royalties receivable 460,438 454,047 Property, plant and equipment 34,084,852 35,840,131 Total non-current assets 34,545,290 36,294,178 Current assets Cash and short-term deposits 5,514,432 4,803,515 Loan receivable - 1,000,000 Inventories 4,419,929 4,166,351 Non-current assets held for sale - 913,820 Prepayments 411,360 391,652 Receivables 3,669,747 5,050,935 Total current assets 14,015,468 16,326,273 TOTAL ASSETS 48,560,758 52,620,451

PUBLIC FUNDS AND LIABILITIES Public funds Revenue fund 6,704,993 7,159,718 Government Business Enterprises 16,014,076 20,321,573 Total public funds 22,719,069 27,481,291 Non-current liabilities Employee benefits 1,014,161 975,221 Borrowings 10,706,082 11,870,259 Deferred lease incentive 458,333 708,333 Total non-current liabilities 12,178,576 13,553,813 Current liabilities Payables 11,061,189 10,225,712 Deferred lease incentive 250,000 250,000 Borrowings 1,200,000 - Customer bonds 23,745 24,170 Trust fund 626,372 603,868 Employee benefits 501,807 481,597 Total current liabilities 13,663,113 11,585,347 TOTAL LIABILITIES 25,841,689 25,139,160 TOTAL PUBLIC FUNDS AND LIABILITIES 48,560,758 52,620,451

Authorised on behalf of the Administration of Norfolk Island on 25 May 2011: Mr David E. Buffett Mr Barry T. Wilson Chief Minister Finance Manager Minister for Finance Accountant for the Territory - 84 - THE ADMINISTRATION OF NORFOLK ISLAND SUMMARY CASH FLOW STATEMENT YEAR ENDED 30 JUNE 2010

CASH FLOWS FROM OPERATING ACTIVITIES 2010 2009 Cash was provided from Taxation, fines and levies receipts 3,462,894 3,797,074 Grants and subsidies 34,483 49,608 Australian Government contribution 634,261 956,506 Interest received from term deposits 208,728 487,136 GST receipts 7,946,428 6,407,548 Charges for goods and services and other operating receipts 36,834,501 36,118,156 Total cash provided from operations 49,121,295 47,816,028 Cash was disbursed to Payments to suppliers and employees 42,073,152 47,686,591 Grants and subsidies paid 3,111,754 1,541,874 Payments – compensation claims 1,737,966 941,008 Total cash disbursed to operations 46,922,872 50,169,473 Net cash flows from Operations 2,198,423 (2,353,445)

CASH FLOWS FROM INVESTING ACTIVITIES Cash was provided from Sale of property, plant and equipment - - Maturing term deposits - - Repayment of advances - - Total cash provided from investing activities - - Cash was disbursed to Purchase of property, plant and equipment 1,481,925 5,937,033 Probity Bonds 19,788 20,000 Investing term deposits - - Total cash disbursed to investing activities 1,501,713 5,957,033 Net cash flow from investing activities (1,501,713) (5,957,033)

CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings (net) 14,207 - Repayment of borrowings (net) - (726,326) Net cash flow from financing activities 14,207 (726,326) Net movement in cash 710,917 (9,036,804) Cash and short-term deposits at beginning of year 4,803,515 13,840,319 Cash and short-term deposits at end of year 5,514,432 4,803,515

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