DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENT 2001 ANNUAL REPORT This report outlines the achievements of the Department of Natural Resources and Environment during 2000-01 from left to right: The Hon Candy Broad MLC The Hon Keith Hamilton MLA The Hon Sherryl Garbutt MLA The Hon Sherryl Garbutt MLA Minister for Environment and Conservation The Hon Keith Hamilton MLA Minister for Agriculture and Minister for Aboriginal Affairs The Hon Candy Broad MLC Minister for Energy and Resources Dear Ministers In accordance with the Financial Management Act 1994, I am pleased to submit to you the Department of Natural Resources and Environment Annual Report for the year ending 30 June 2001. Yours sincerely Chloe Munro Secretary The Annual Report is available on NRE’s website at www.nre.vic.gov.au © The State of Victoria, Department of Natural Resources and Environment, 2001. ISSN No 1327-6344 Published by the Victorian Government Department of Natural Resources and Environment, Melbourne, Victoria, Australia October 2001 Front cover photo – remote control channel along Meribein irrigation system. The gate uses state of the art computer technology to regulate water flow according to user requirements Photography by Megan Jones DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENT OUR VISION OUR VALUES OUR OUTCOMES PROSPERITY OUR ORGANISATIONAL VALUES • Ecologically sustainable WITH CARE REFLECT OUR ATTITUDES development TO THE COMMUNITY, OUR • Enhanced biodiversity values SERVICES, OUR BUSINESS • Improved natural OUR PURPOSE AND EACH OTHER. WE: resource management • Sustainable and TO ENSURE VICTORIA’S • strive to understand and competitive industries meet community needs NATURAL AND CULTURAL • Effective community engagement • are environmentally, economically, in decision making ASSETS ARE MANAGED and socially responsible TO SECURE SOCIAL, • are committed to excellence • A secure and efficient ENVIRONMENTAL AND and continuous improvement energy supply • encourage teamwork and ECONOMIC BENEFITS FOR • Improved Aboriginal well being respect each other • A comprehensive response BOTH CURRENT AND • encourage improvement in to Greenhouse FUTURE GENERATIONS. our skills and knowledge • value ethical, accountable and • Responsible application responsible behaviour of gene technology Natural Resources and Environment Annual Report 1 CONTENTS Vision 1 Purpose 1 Values 1 Strategic Priorities 3 Secretary’s Report 4 Year in Brief 6 Financial Summary 12 Corporate Profile 14 Major Customers and Stakeholders 15 Services 15 Output Groups 16 Minerals and Petroleum 17 Forest Management 20 Fire Management 25 Fisheries 28 Land Management and Information 32 Conservation and Recreation 36 Agriculture 42 Catchment and Water 46 Aboriginal Reconciliation and Respect 52 Energy and Greenhouse Policy 56 Corporate Governance 58 Organisational Chart 61 Our Leadership Team 62 Our People 65 Commitment to Excellence 70 Business Management 72 Research and Development 76 NRE Institutes 77 Gene Technology Report 80 Financial Report 81 Appendices 126 Compliance Index 127 Glossary 146 Index 147 Major locations and contact information 148 2 Natural Resources and Environment Annual Report OUR STRATEGIC PRIORITIES THE DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENT IS COMMITTED TO THE SUSTAINABLE DEVELOPMENT OF VICTORIA’S NATURAL RESOURCES. TO DELIVER ON ITS COMMITMENT IT HAS THREE STRATEGIC PRIORITIES: IMPROVED BIODIVERSITY, GROWTH OF SUSTAINABLE AN INFORMED AND AND NATURAL AND LAND AND RESOURCE RESOURCEFUL CULTURAL RESOURCES INDUSTRIES AND MARKETS VICTORIAN COMMUNITY 1Protection and improvement of 2 Facilitation of the growth of 3 Facilitation and support of biodiversity, natural and cultural sustainable and competitive vibrant, informed and resourceful resources, and maintenance of viable resource industries and effective communities through the ecological systems and processes land and property markets in a coordinated delivery of a range through the delivery of high quality manner that enhances investment of extension services, participatory park and reserve management, and consumer confidence, and transparent decision making land and water management, supports local communities and processes, and ready access conservation on private land and delivers environmental benefits. to information. stewardship of the public estate. Natural Resources and Environment Annual Report 3 SECRETARY’S REPORT The allocation of scarce natural resources between use values and conservation values is a significant challenge for the Department of Natural Resources and Environment (NRE), requiring innovation across the three dimensions of the triple bottom line – environmental, economical and social. NRE’s Corporate Plan was released in October ACHIEVEMENTS, CHALLENGES The Victorian Government is providing funding 2000. The plan provides a clear statement AND FUTURE DIRECTIONS of $243.8 million, over 11 years, towards the of where we are going, what we are aiming Snowy River project and $157.5 million, over NRE made a considerable contribution to to achieve, and how we intend to get there. seven years, to the National Action Plan for negotiations between Victoria, New South Importantly, the Corporate Plan embeds the Salinity and Water Quality. Wales, South Australia and the Common- elements of the triple bottom line through our wealth to restore 28% flows to the Snowy The 2001 review of metropolitan water vision, purpose and strategic priorities. River. The signing of the Heads of prices involved broad community and Over the past year, NRE started a process to Agreement on the Snowy Water Inquiry industry representation. The outcome has re-orient its business including delivery of outcomes marked a milestone in restoring ensured that Victorians will continue to enjoy high quality and affordable domestic water integrated services in regions and improved the health of the Snowy River System. NRE as well as the delivery of important environ- project management processes. I am confident established a dedicated unit to implement mental improvements in areas such as that this revised business model will provide water saving projects and has played a major sewerage backlog programs. a robust framework for future delivery of our role in negotiations on the water agreements programs and outcomes. package to implement the Agreement. Since the responsibility for Energy Policy was Our leading edge in water catchment placed under the Department’s portfolio, NRE We have maintained tight financial control over management was a key driver of national has successfully established both gas and our year’s operation and met our controlled approaches to salinity and water quality electricity projects for the delivery of Full Retail operating budget of $923 million while, at the through the National Action Plan for Salinity Competition. The choice of retailer for small same time, achieving the majority of required and Water Quality (NAP). Focus was placed business and domestic consumers of gas and outcomes against performance targets. on pro-active, community driven plans with a electricity will commence over 2002. NRE Alongside the completion of many projects, this strong emphasis on performance monitoring has also led the development of appropriate year has seen the commencement of a number and supported by a better regulatory measures to support the security of Victoria’s of initiatives that set us on a new and innovative environment and scientific expertise. The energy supply. path towards achieving sustainability. Our major Inter-Governmental Agreement for NAP The challenges of reducing greenhouse gas achievements, challenges and future directions, was signed on 13 July 2001 and work on the emissions, enhancing greenhouse sinks, and summarised below, indicate the exciting and Bilateral Agreement will occur during understanding the implications of climate change challenging times ahead. 2001-02. and how to adapt to them, lie ahead of us. 4 Natural Resources and Environment Annual Report In August the Victorian Greenhouse Strategy A rigorous and transparent process NRE PEOPLE Discussion Paper was launched for consult- for the allocation of sawlog resources, I particularly appreciate the support ation. Public response was very strong, as we consistent with the Government’s I have received from NRE staff. They have would expect for an issue that has potential sustainable forest management principles, continued to demonstrate commitment implications for all Victorians. Since the release was commenced. Once completed, this and professionalism. The dedication shown of the Discussion Paper together with a wide important body of work will produce a by staff at these times is indicative of a range of input from both the community sound blueprint for the allocation and use strong and capable workforce, that I am and business sectors, NRE has undertaken of timber resources in Victoria and will proud to be leading. work that will put us in a strong position to provide for a sustainable timber industry address these challenges within a broad Underpinning all of the challenges for and rural communities. sustainability framework. the year ahead will be a key focus on Government remains committed to estab- enhancing the capacity of the community The Department successfully managed a number lishing a comprehensive system of marine to engage and participate in natural resource of emergency response issues including a locust parks for Victoria. Work is continuing management. NRE will also focus on gaining plague, the threat of foot