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 and mouth disease to develop options to secure passage a better understanding of the environment outbreaks, and fire control. Our world class of relevant legislation through Parliament. we manage in order to better protect and strength in fire control was recognised nurture it. internationally when NRE staff were sought for Our research and development provides deployment by the United States. For five weeks a key source of new knowledge and NRE’s achievements over the year have laid our staff provided expert guidance in managing innovation in the agriculture and natural strong foundations for continued growth in rural the logistics of fire fighting operations during the resource sectors. Building on these and regional Victoria, a healthier environment, extreme fire conditions across the USA. strengths, NRE has secured $50 million of and more vibrant communities. The NRE Indigenous Partnership Strategy Growing Victoria funds to develop four key was finalised. This strategy will promote regional centres as science, innovation and Indigenous issues within NRE and will education precincts. These precincts will facilitate the development of an effective build partnerships between public relationship between NRE and Victoria’s research, educational institutes, industries Chloe Munro Indigenous communities. and rural communities. Secretary

Natural Resources and Environment Annual Report 5 OUR YEAR IN BRIEF AN OVERVIEW OF KEY ACHIEVEMENTS OF EACH STRATEGIC PRIORITY

NRE’s corporate plan sets the vision and direction for the organisation over the medium term and identifies the three strategic priorities. The following pages provide an overview of the major key achievements and directions set against these priorities.

Strategic Priority Improved Biodiversity, and Natural and Cultural Resources

• Protection and improvement of biodiversity, natural and cultural resources

• Maintenance of viable ecological systems 1 and processes • Conservation on private land

• Stewardship of the public estate

Key Achievements Future Directions

An environmental management policy was developed to identify NRE’s impacts Implement the NRE’s Environmental Management System and the and set targets to reduce NRE’s environmental impacts. (P73) ‘Eco-Office Challenge’. (P74)

The Premier’s Aboriginal Advisory Council was established to facilitate Respond to the Council for Aboriginal Reconciliation’s National Strategies. (P53) indigenous involvement in setting strategic directions and government priorities (P52) Finalise the Victorian Public Service Indigenous Employment Strategy. (P53)

The ‘BushTender’ pilot program was launched to achieve improved vegetation Expand the ‘BushTender’ pilot project. (P42) management with landholders. (P42) Develop Biodiversity Bioregional Plans for 6 bioregions. (P38)

Developing practical methodologies for biodiversity conservation on farms

The ‘Best Agricultural Practice for Biodiversity Conservation in Grazing Industries’ project is investigating the opportunity of differentiating the produce of Victorian graziers by substantiating the green in ‘clean and green’. By demonstrating their green credentials, Victorian graziers can have an edge over their competitors that will benefit them in the marketplace and back on the farm. The project involves developing a number of case studies on working farms to demonstrate the practicalities of achieving best agricultural practice for native biodiversity in context. The case study approach is a property management tool, known as an Environmental Management System (EMS) which is coupled with minimum performance standards. At the end of two years, it is anticipated that the product will be a refined management tool that the agricultural extension programs can use to enhance the skills of graziers in best practice biodiversity.

6 Natural Resources and Environment Annual Report Key Achievements Future Directions

Drought Response Plans were finalised by water authorities in response to the Regulate user access to stream water through registration and licensing of new possibility of dry conditions continuing. (P50) and existing farm dams for commercial irrigation. (P47)

Bulk water entitlements for Thomson and Macalister Rivers were finalised. (P50)

National measures to reform marine pest management were supported, Finalise the Victorian Coastal Strategy. (P36) including the National Control Plan for the Northern Pacific Seastar. (P37)

Improved Fire Occupational Health and Safety training and monitoring programs Upgrade of fire management infrastructure, including fire towers and were introduced. (P25) replacement of the Digital Line Scanner. (P25)

First review of the Code of Practice for Fire Management on Public land Develop consultation processes for State and Commonwealth land rights, was published. (P26) indigenous heritage and environment legislation on prescribed fire programs.(P26)

The North East Forest Management Area Plan was completed. (P20) Complete the Sawlog Licence Renewal process. (P22)

Finalise and implement the Victorian Firewood Strategy. (P20)

Develop a Timber Industry Plan. (P20)

The parks system was enhanced through additions to five national and Undertake significant upgrades to facilities at major visitor sites to five national coastal parks. (P40) parks sites. (P40)

Major Aboriginal cultural heritage management planning and works projects Complete the development of the Victorian Aboriginal Heritage Information were implemented. (P55) System. (P55)

A $4.5 million Caravan Park Upgrade program was implemented with 25 projects Lead government wide awareness of native title future act guidelines. (P32) delivering improved amenities and reduced impact on environment. (P32)

Explicit and separate property rights for carbon sequestered by trees were Finalise the Victorian Greenhouse Strategy. (P57) created by the Forestry Rights (Amendment) Act 2001 through Parliament. (P57)

Snowy River

In October 2000 the Government reached an historic agreement with the NSW and the Commonwealth Governments concerning restoration of the Snowy River below Jindabyne. The agreement features a joint $375 million package and a commitment to increased flows to the Snowy of 21% over 10 years and 28% in the longer term. The project will also increase environmental flows to the Murray, upper Murrumbidgee and key alpine rivers in the Kosciusko National Park. The Victorian Government has committed a total of $243.8 million, including $150 million for water savings projects through the Joint Government Enterprise, and $53.8 million for planning and rehabilitation, environmental projects and monitoring, and construction of the Woorinen pipeline. In February 2001, the Government announced funding of $40 million for initial water saving projects: $25 million provided in-principle approval for water metering in the Goulburn Murray Irrigation District and pipelines for the Tungamah and Normanville domestic and stock water supply systems. These projects will result in: • reduced seepage, leakage and evaporation - up to 25,000 megalitres per annum • improved reliability and quality of water supply • creation of an additional 75 to 100 local jobs over 3 years. A Memorandum of Understanding for the development of the projects and the Woorinen Pipeline has been finalised between NRE and Goulburn-Murray Water. These projects will offset providing for increased environmental flows to the Snowy and will result in long term sustainable environmental outcomes.

Natural Resources and Environment Annual Report 7 OUR YEAR IN BRIEF AN OVERVIEW OF KEY ACHIEVEMENTS OF EACH STRATEGIC PRIORITY (CONTINUED)

Strategic Priority Growth of Sustainable Land and Resource Industries and Markets

• Facilitation of the growth of sustainable and competitive resource industries

• Facilitation of effective land and property markets 2 • Enhancing investment and consumer confidence, supporting local communities and delivering environmental benefits

Key Achievements Future Directions

The Victorian Yabby Producer’s Manual was developed to define best practice Develop a labelling system for the aquaculture industry to facilitate compliance production and safety standards. (P31) and food safety requirements. (P31)

Technologies were developed to reduce the demand by agricultural industries Increase NRE’s investment in improved environmental and resource on natural resources. (P44) management systems. (P44)

1583 commercial and recreational fishing offences were detected. (P30) Improve communication with multicultural communities on fisheries issues leading to greater awareness and compliance. (P30)

Logging Coupe Information and Roads Management Information Systems were Work with industry and union stakeholders to develop sawlog licence developed for implementation in 2001-02. (P22) renewal strategies. (P22)

The data collection phase of the Statewide Forest Resource Inventory projects Complete SFRI mapping for State forests. (P24) were completed for two further Forest Management Areas. (P24)

Milking Innovation for jobs

A robust, inexpensive, in-line milk meter, developed by NRE’s Dairy Research Institute at Ellinbank to give farmers immediate information on milk volume and quality, is to be manufactured in rural Victoria. The commercial production of the ELIMETER is being undertaken in Warragul by two Australian companies selected from an international field, Radiometer Pacific and Modra Technologies. The partners will invest $3 million in taking the prototype meter through to full commercialisation. The meter has strong export prospects within the next few years. The marketing, production and distribution of the meter within Victoria is expected to create up to 100 new jobs in regional Victoria. It will be installed and serviced around Australia by Skilled Engineering. The ELIMETER can measure daily milk volumes, take mini-samples for quality testing and collect information on animal health. It was developed by NRE in partnership with the Dairy Herd Improvement Fund. The meter will contribute to increased market access for Victorian milk products by enabling dairy farmers to improve herd management and milk quality. It should be available to Victorian farmers within the next 12 months.

8 Natural Resources and Environment Annual Report Key Achievements Future Directions

Five million paper documents were converted to electronic format that will Develop Property Online to establish a framework to deliver land information enable online, remote searching throughout Victoria. (P34) and transactions electronically to the community, business and industry. (P34)

The Victorian Petroleum Resource Atlas (Part 2) was released. (P18) Update GIS data packages, geochemistry and boreholes databases and on-line access to geological data. (P18)

A program of health, safety and environment audits across key extractive, Amend the Occupational Health and Safety Act and the Mineral Resources mining and petroleum sites was implemented. (P17) Development Act to allow NRE staff to be appointed as inspectors. (P17))

A review of recreation and tourism infrastructure for the Otways hinterland Develop a recreation infrastructure database for all Forest Management was completed. (P23) Areas. (P23)

A lead role was taken in the development of a National Livestock Identification On-going implementation of the Naturally Victorian Initiative to enhance exports of Scheme for quality export beef production. (P42) agriculture and food products. (P43)

The Offshore Constitutional Settlement for shark with the Commonwealth Development of ecological sustainability indicators for export fisheries to was completed. (P28) comply with new export requirements. (P28)

Implementation of the Security of Supply Taskforce recommendations to Provision for evolution of trading arrangements retailers can compete for examine security of supply options for the future was initiated. (P56) customers in electricity and gas. (P56)

Titles Automation Project and Electronic Conveyancing Victoria

The Titles Automation Project is a major investment in new technology and includes the conversion of Victoria’s 3.8 million paper titles and more than 1 million of the associated documents to electronic format, as well as the development of a new online titles registration system – Victorian Online Titles System . Dealing registration times will be reduced from 21 days to one day and title search service delivery times reduced from 24 hours to minutes when the new system is implemented. With titles automation nearing completion, NRE can now move to maximise the benefits of electronic title information by introducing an Internet-based conveyancing system - Electronic Conveyancing Victoria. This will make it faster and easier for Victorians to buy, sell or otherwise deal with land. It will provide end-to-end conveyancing over the Internet, including electronic settlement and immediate online lodgement of land dealings and registration of interests in land. Land Victoria is actively working with stakeholders from the legal, property, conveyancing and financial industries to develop the new system. It will be introduced in 2003 and will not be mandatory.

The Parnee Malloo Cultural Heritage Trail at Nyah State Forest

The Parnee Malloo Cultural Heritage Trail at Nyah State Forest was developed jointly by Forest Management staff and the North West Cultural Heritage Program and employed local Aboriginals. A community BBQ breakfast was held at Nyah State Forest to officially open the new facilities including the footbridge constructed for the Cultural Heritage Trail and to release the Proposed Mildura Floodplain Management Strategy for public consultation.

Natural Resources and Environment Annual Report 9 OUR YEAR IN BRIEF AN OVERVIEW OF KEY ACHIEVEMENTS OF EACH STRATEGIC PRIORITY (CONTINUED)

Strategic Priority An Informed and Resourceful Victorian Community

• Facilitation and support for communities through delivering a range of extension services 3 • Participatory and transparent decision making processes • Ready access to information

Key Achievements Future Directions

A process for the development of a Victorian State of the Environment Report was Develop an Environmental Gateway and baseline environment report. (P73) initiated. (P73)

A Regional Data Net program to provide geographic information at the Expand the provision of Web based services to land and water managers and regional/local scale was developed. (P46) community groups including ‘Landcare’ portal and Native Vegetation Permit Tracking system. (P47)

Index of Stream Condition

Over the past 6 years NRE has developed the Index of Stream Condition (ISC) that assessed stream condition across the State. The ISC measures total stream conditions across five sub-indices: hydrology, water quality, stream side zone, physical form and aquatic life. Catchment Management Authorities and Melbourne Water assessed 1,000 reaches (representing 18,000 km of major streams and their tributaries). • 22% of river length was assessed as being in good or excellent condition • 46% of river basins have less than 10% of their stream length in good or excellent condition • Results are available on the Web as part of the State data warehouse which houses statewide data on water quality, water quantity and Waterwatch data at www.vicwaterdata.net/isc Results can be displayed for a single reach, river, basin or CMA area. Over 1,500 photographs of the States rivers are also displayed

10 Natural Resources and Environment Annual Report Key Achievements Future Directions

Farmer participation in best-practice programs for agriculture industry training Implement the FarmBis program to improve the business skills and skills development has increased by 7.3%. (P45) of farmers. (P45)

The Second Generation Landcare Taskforce was established to review future Implementation of the National Action Plan for Salinity and Water Quality. (P49) support for Landcare. (P48) Develop a Victorian River Health Strategy that provides information on 950 river reaches. (P49)

NRE provided 800,000 title searches, an increase of 26,000 on the previous A commercial pilot system for the Vendor Statement Certificates Online project year, and 260,000 instrument (eg. caveats, covenants and transfers) searches, that can be further developed to interface with the Victorian Online Titles to support the property industry. (P33) System and transaction tracing applications. (P33)

Community administration of the Aboriginal Lands Act 1970 was reviewed and Undertake a review of the Aboriginal Lands Act 1970 that is upgraded in consultation with members of the Lake Tyers Aboriginal Trust and now 31 years old. (P54) Framlingham Aboriginal Trust. (P54)

Deakin Irrigation Development Project

The ‘Water for Growth Initiative’ highlights the importance of secure water entitlements for economic growth of rural Victoria as well as the importance of environmental flows and water quality for healthy rivers and sustainable catchments. Under this initiative, $30 million has been allocated over three years for efficient and sustainable water use through improved irrigation infrastructure. An extensive area inland from the Murray at Mildura was identified as a prime location for development that could eventually double the current irrigation area of 16,000ha. A feasibility study, undertaken by Deakin University, investigated: • The establishment of high value irrigated horticulture and viticulture • The introduction of an appropriate environmental management system to result in a net environmental gain for the region • The economic/financial viability of preferred irrigation and drainage system options • Private sector investment options to fund new infrastructure in collaboration with the Department of Infrastructure. A report on the study was released in June 2001 and provided a model for other regions in the State.

Natural Resources and Environment Annual Report 11 FINANCIAL SUMMARY

Financial Review of Operations and Financial Results

A five-year financial summary for the Department is provided NRE of Aboriginal Affairs Victoria and Energy in the following table. Specific financial details are included in the Policy. Over the past five years the accounting reclassification of various revenue sources from accompanying financial statements. Controlled to Administered has impacted on the amount of other revenue shown in each year.

FIVE YEAR FINANCIAL SUMMARY (CONTROLLED) The Department’s total assets have increased by $11.3 million in 2000-01 mainly due to the 1996-97 1997-98 1998-99 1999-00 2000-01 recognition and capitalisation of software develop- $’000 $’000 $’000 $’000 $’000 ment costs as intangible assets. The movement in total assets over the past five years has resulted Revenue from Government 603,797 555,111 665,335 759,916 795,655 from improvements in the recognition and Other revenue 240,985 260,802 187,349 130,849 128,148 revaluation of major public infrastructure resources, Total revenue 844,782 815,913 852,684 890,765 923,803 including Crown land, state forests, conservation Net operating result (before abnormals) 22,796 27,234 103,476 40,302 8,080 reserves, roads, buildings and structures. Net cash flow from operations 38,493 (14,386) 65,616 64,063 31,693 Total liabilities have increased by $13.6 million Total assets 1,197,315 1,561,448 2,794,782 3,011,848 3,023,158 due to a growth in the provision for employee Total liabilities 104,885 95,599 93,356 114,024 127,594 entitlements and a public account advance for GST payable.

For the financial year ending 30 June 2001, the changes in the timing of major projects in the The 1998-99 financial year was the first year Department’s operating surplus of $8.1 million is Department’s asset investment program. of the accrual output budgeting and the less than 1% of total revenue. This surplus The increase in total revenue from 1999-2000 Department’s high surplus (shown in the reflects the late receipt of payments from the reflects additional revenues associated with graph Net Operating Result on page 13) reflects Commonwealth and unexpended allocations for various new initiatives and Machinery of the accounting methodology at that time the capital assets charge and depreciation due to Government changes including the transfer to which has since been refined.

12 Natural Resources and Environment Annual Report NET OPERATING RESULT 2000-01 TOTAL REVENUE

100

80

60

40

Revenue from Government 796m 86.1% 20 Other Revenue 128m 13.9%

0 1999-2000 2000-2001 1996-1997 1997-1998 1998-1999

Refer to page 12 for explanation of graph

Revenue from Government for the 1996-97 PAYMENTS FOR OUTPUTS ASSET INVESTMENT PROGRAM and 1997-98 financial years are on a cash basis. Revenue provided by the State The Department’s Asset Investment Government and external organisations Program is funded from current year The full cost of the Department’s activities covers operating expenses accumulated depreciation and direct are funded through the application of State relating to the provision of outputs. contributions from the State Government. Appropriations, revenue from external Payments by each Output Group are The costs incurred by the relevant Output shown below: Group are shown below: organisations including the Commonwealth, for the provision of goods and services and the Metropolitan Parks Improvement Levy. Output Group summaries for the major expenditure categories are shown in the following graphs. Specific output performance and achievement is provided in the body of this report.

FUTURE OUTLOOK Minerals & Petroleum 14.1m 1.6% Minerals & Petroleum 1.9m 4.9% The Government has approved additional Forest Management 140.7m 15.5% Forest Management 1.4m 3.6% funding in 2001-02 of $51.4 million for delivery Fire Management 64.5m 7.1% Fire Management 4.0m 10.3% of outputs including the National Action Plan for Fisheries 27.0m 3.0% Fisheries 0.7m 1.8% Salinity and restoring environmental flows to the Land Management Land Management Snowy River. Additional funding has also been & Information 108.5m 12.0% & Information 17.1m 44.0% approved for the Assets Investment Program to Conservation & Recreation 182.7m 20.2% Conservation & Recreation 3.6m 9.3% undertake construction works in several research Agriculture 179.8m 19.8% Agriculture 8.9m 22.9% Catchment & Water 1.2m 3.1% institutes and completion of the Property Titles Catchment & Water 180.1m 19.9% Aboriginal Reconciliation Aboriginal Reconciliation Automation Project. & Respect 8.6m 0.9% & Respect 0.1m 0.3% Total 906.0m 100.0% Total 38.9m 100.0%

Natural Resources and Environment Annual Report 13 CORPORATE PROFILE

The Department of Natural Resources and Environment (NRE) was formed in 1996 with the amalgamation of the former Departments of Conservation and Natural Resources, Agriculture, Minerals and Energy, the Land Titles Office, Offices of the Valuer General, Surveyor General, Geographic Data Coordination and the Land Conservation Council. Water Industry policy was incorporated in 1999. Energy and Greenhouse policy and Aboriginal Affairs Victoria joined NRE in 2000.

The key objectives of NRE are the protection Conservation and Recreation, Fisheries, Fire of Victoria’s natural environment and promotion Management, Forest Management, Land of sustainable natural resource based industries. Management and Information and Minerals and The Department provides services to all Petroleum. These services are delivered across Victorians and, in particular, to rural and regional Victoria directly by six regional service teams and a Victorians. Many of NRE’s services are delivered range of external service providers including Parks in close partnership with community groups and Victoria and Catchment Management Authorities. resource based industry and research institutions. Through its services, NRE contributes to the NRE directly employs 4471 staff, who work from social, economic and environmental well being of 180 locations across the State. In 2000-01 total rural and regional Victoria. This is achieved funding was just under $l billion including through multiple roles (research and Commonwealth funding of $52 million and $132 development, planning, management, regulation, million from fees and charges. information provision, facilitation and emergency NRE staff undertake a wide range of activities management) and a broad focus across involving scientific research, land management, environment and natural resource management. conservation, policy development and business NRE promotes sustainable development of management. Victoria’s diverse natural resources through Services are grouped by sector into the following industry development, community partnerships, output groups: Aboriginal Reconciliation and environmental protection and conservation of our Respect, Agriculture, Catchment and Water, natural and cultural heritage.

14 Natural Resources and Environment Annual Report MAJOR CUSTOMERS AND STAKEHOLDERS AND SERVICES

Victoria

North West Northern Irrigation

North East

Port Phillip Gippsland South West

Natural Resources and Environment Regions (Location addresses p145)

MAJOR CUSTOMERS AND STAKEHOLDERS SERVICES

• Local, State, Territory and Common- • Environmental, tourism, NRE's organisational structure reflects its wealth governments, agencies, sport and recreation groups broad range of services to agriculture, fisheries, authorities and organisations • Extractive, mineral and petroleum forest and fire management, catchment and • Aboriginal communities and organisations industry bodies, explorers, water management, conservation and recreation, land management and information, energy and • All Victorian gas, electricity and producers and their agencies minerals, and Aboriginal affairs. water users • Community and special interest groups NRE service providers include: • Victoria’s timber and forest industries • Local, national and international • a regional service delivery business that consumers and business organisations • Food and agriculture industries includes six regional service teams • Financial institutions • Commercial and recreational fishing • specialised business units such as Forestry and aquaculture sectors • Land and water managers, planners, Victoria and Agriculture Victoria developers and information users • fifteen scientific research institutes • Key employer associations • statutory authorities, such as Catchment and unions Management Authorities and Parks Victoria

Natural Resources and Environment Annual Report 15 CONTENTS

Minerals and Petroleum 17 The following Minerals and Petroleum Industry Regulation Services 17 section provides Minerals and Petroleum Industry Development and Information 18 details of the Forest Management 20 Outputs under Forest Plans and Prescriptions 20 each Output Forest Production 22 Recreational, Cultural and Community Forest Services 23 Group provided to Forest Resources Assessment and Analysis 24 Government, Fire Management 25

including our Fire Planning and Prevention 25

performance Fire Operations 27

measures and the Fisheries 28 indicative costs for Sustainable Fisheries Utilisation Services 28 each output. Industry and Community Compliance services 30 Aquaculture and Fishing Industry Development 31

Land Management and Information 32

Public Land Management 32

Land Information Services 33

Land Definition 34

Conservation and Recreation 36

Coastal Planning and Management Services 36

Biodiversity Conservation Management Services 38

Park Management Services 40

Agriculture 42

Services to improve Market Access, Market Development and consumer confidence in Food and Agriculture Products 42

Development of Next Generation Technologies for Sustainable Agriculture 44

Community, Farm and Industry Development Services 45

Catchment and Water 46

Catchment Information Services 46

Community Land and Water Management 48

Catchment and Water Resource Allocation and Access 50

Aboriginal Reconciliation and Respect 52

Policy Advice and Development 52

Administration of Legislation 54

Provision of Services 55

Energy and Greenhouse Policy * 56

Energy Industry Reform Policy Advice 56

Greenhouse Policy Development 57

* not required in 2000–01 Budget Papers OUTPUT GROUP: MINERALS AND PETROLEUM

Minerals and Petroleum is responsible for the sustainable development of Victoria’s earth resources by facilitating increased investment in exploration for minerals and petroleum leading to the establishment of new producing operations, competitive sources of gas supply and extractive industry production. This is undertaken while ensuring that community expectation for health, safety and environmental management are met.

Minerals and Petroleum Industry Regulation Services

OBJECTIVE: FUTURE DIRECTIONS

To provide a consistent and transparent • Develop Memorandums of Understanding OH&S Act and removal of the exempt licensing regime together with health, safety with Victorian WorkCover Authority for the status of mining sites from the OH&S and environmental standards, monitoring and regulation by NRE in relation to mining, Act are planned for the Spring session enforcement that ensure industry operations mineral exploration, onshore petroleum, of Parliament. meet community expectations. and pipeline sites. • Maintain offshore audit, approval and KEY ACHIEVEMENTS • Develop safety and environmental regulations assessment activities while at the same for mining sites and for petroleum operations time assessing the re-submission of New administrative and operational in Victorian waters. Esso’s safety management system, and procedures for petroleum (onshore and • Amendments to the Occupational Health and technically assessing the eight new offshore offshore) acts were developed for Minerals Safety (OH&S) Act and the Mineral Resources and onshore petroleum developments. and Petroleum Regulation activities. The Development Act to allow NRE staff to be • Develop procedures for the new Common- procedures will ensure consistent, robust appointed as inspectors under the wealth petroleum environment regulations. and transparent processes.

Regulations for extractive, mining FINANCIAL AND PERFORMANCE MEASURES RESULTS and onshore petroleum industries and for gas transmission pipelines were Published further developed. The regulations are Minerals and Petroleum Industry Actual Actual Target Actual intended to shift the regulatory framework Regulation Services 1998-99 1999-00 2000-01 2000-01 from a prescriptive to a more objective Audits of high or critical sites completed 439 200 200 188 based focus. Exploration and mining licences which are not active (1) 25% 34% 20% 31% Inspection programs were implemented Mining industry work-plans not processed in one month 6% 20% 20% 6.3% based on risk principles for industry safety, environmental and rehabilitation Mining licence applications received in the twelve activities and were successfully completed. month period not determined after four months 12% 10% 20% 0%

A program of health, safety and environ- Exploration license applications received in the twelve month period not determined after three months (1) 19% 0% 20% 0% ment audits across key extractive, mining and petroleum sites was implemented. Indicative Cost (2) na na $10.3m $6.4m

1 Reflects inactivity in the industry caused by the low gold price and the difficulty in raising equity for investment and development.

2 Allocations for the Sustainable Energy Authority of Victoria were transferred to Greenhouse Policy Development during the year.

Natural Resources and Environment Annual Report 17 OUTPUT GROUP: MINERALS AND PETROLEUM OUTPUT GROUP: MINERALS AND PETROLEUM

NRE facilitated the approval process for major mineral and petroleum projects

Minerals and Petroleum Industry Development and Information

OBJECTIVE

To promote the development of extractive, NRE facilitated the approval process for major mineral and petroleum industries in Victoria mineral and petroleum projects including the by facilitating significant projects and maint- Patricia Baleen project and Tasmanian and aining, updating, developing and distributing Bream A pipelines, and NRE input into relevant information. Environment Effect Statement processes such as the Stawell, Fosterville, Hazelwood and KEY ACHIEVEMENTS Maryvale mining projects. The Minerals and Petroleum policy including the Geological maps, reports and data including a review of the Geological Survey of Victoria and landmark volume on the palaeozoic geography pathways for new Greenhouse acceptable brown of the State and part two of The Victorian coal technologies was implemented. Petroleum Resource Atlas were released. Amendments were made to the Mineral Resources Development Act (MRDA). The Act FUTURE DIRECTIONS is the principal legislation in Victoria relating to the management of mineral exploration and • Facilitate major mineral and petroleum • Commence digital transcripts project mining with the purpose to encourage and projects through complex planning and other and continue asset calaloguing and facilitate the responsible exploration and mining statutory approval processes. database population. of minerals. Amendments include provision for • Progress regional geological data collection • Commence a review of the Pipelines Act. compensation for mining impacts on Crown land work programs, with the release of geological • Prepare the procedures for more in specified circumstances, improving the maps, reports and datasets. effective interdepartmental consideration operation of the ‘100 metre rule’ that protects of minerals and petroleum approvals. significant sites within 100 metres of mining • Update GIS data packages, geochemistry and activities and more effective management of boreholes databases and on-line access to rehabilitation and rehabilitation bonds. geological data.

18 Natural Resources and Environment Annual Report Mineral Sands

The Murray Basin promises to develop into a • A tri-state study, initiated by Victoria, was major new mineral sand province with good prospects completed on the infrastructure required for for new mining and downstream minerals processing the development of the mineral sand in the in Victoria. Major developments in this area include: Murray basin.

• Murray Basin Titanium Pty Ltd commencing The State Government has committed $96 million for production from its Wemen mine and Thurla plant a major rail standardisation program that will greatly • Basin Minerals Pty Ltd have commenced the enhance Victoria and, in particular, Portland as a approval process for its Douglas project location for downstream mineral sand processing.

FINANCIAL AND PERFORMANCE MEASURES RESULTS

Published Minerals and Petroleum Industry Actual Actual Target Actual Development and Information 1998-99 1999-00 2000-01 2000-01

Targeted industry information packages released 25 19 15 15

Strategic areas of the State covered by airborne geophysics 75% 85% 95% 100%

Strategic areas of the State covered by new geological mapping 40% 42% 44% 44%

Strategic areas of the State covered by full GIS databases 55% 80% 90% 100%

Input to Environment Effects Statements completed according to EES panel timelines 100% 100% 100% 100%

Victorian Initiatives for Minerals Top banner left: Helicopter over oil rig in Bass Strait & Petroleum (VIMP) data releases Top banner right: Folds in the lower deronian meeting timetable 100% 90% 90% 90% formation Cape Liptrap, South Gippsland Middle: Mineral sand mining Indicative Cost (1) na na $12.6m $7.7m Bottom: Magnetic image of Victoria 1 Allocations for the Sustainable Energy Authority of Victoria were transferred to Greenhouse Policy Development during the year.

Natural Resources and Environment Annual Report 19 OUTPUT GROUP: FOREST MANAGEMENT

Forests Service is responsible for the Forest Management Output Group. The Division aims to achieve sustainable management of State forests for a range of productive, conservation and recreation uses.

Forest Plans and Prescriptions

OBJECTIVE

To prepare plans, agreements, codes, The Forest Science Centre delivered an extensive ensuring an ecologically sustainable supply prescriptions and guidelines that continue to research and development program for the of firewood from public and private land. improve the framework for ecologically planning and implementation of sustainable • Develop the framework for a sustainable sustainable management of the State’s Public timber forest management in native forests. timber industry in Victoria. This includes Land native forests. Research and development addressing the the establishment of the Timber Industry Code of Forest Practice included soil, water Council to act as the principal forest KEY ACHIEVEMENTS and forest health. industry body, development of a Timber The integrated forest policy and planning A Statewide review of fauna habitat pres- Industry Plan that will set directions, framework for the whole of the Victorian forest criptions for public native forests was finalise the Timber Pricing Review and estate was consolidated giving due recognition to completed. It provides up to date and implement recommendations that the global and competitive nature of the forest consistent protection measures for native support an innovative and competitive industry. Completion of the North East Forest fauna in State forest. The review addressed industry in the State. Management Area Plan and substantial progress the key issue of fauna habitats in areas • Complete examination of harvest and toward plans for the Mildura, Mid Murray and harvested for timber. Prescriptions are haulage arrangements in the State and Gippsland Forest Management areas contributed applied to harvesting to ensure appropriate implement recommendations that will to this achievement. Prescriptions for biodiversity habitats are maintained in those areas. support viable and secure contractor protection are a key feature of those plans. and crew rates. Improved conditions FUTURE DIRECTIONS Four audits of compliance were completed in in the native forest harvesting and accordance with the Code of Forest Practices • Prepare and commence implementation haulage sector will be considered at the for Timber Production. The audits show a high of a Victorian Firewood Strategy that same time as ensuring competitive, level of compliance with key environmental establishes a preferred direction efficient, consistent and safe operations protection measures. for this important domestic industry across the State.

20 Natural Resources and Environment Annual Report The Forest Science Centre

The Forest Science Centre at Creswick is a joint The Centre is providing services to southeast initiative of NRE and The University of Melbourne. Australia and overseas students and forestry The Partners have invested over $5.0m in organisations and is also developing key capabilities developing world class research and teaching in greenhouse matters, the development of innovative facilities at Creswick. Offering undergraduate genetic research and the science of sustainable forest and postgraduate opportunities combined with management. The Forest Science Centre precinct at basic and applied research, the Centre is fast Creswick has attracted the support and enthusiasm of becoming the centre of choice for forestry science local government, businesses and the community as and technology. being a strong growth opportunity for the region.

FINANCIAL AND PERFORMANCE MEASURES RESULTS

Published Forest Plans and Prescriptions Actual Actual Target Actual 1998-99 1999-00 2000-01 2000-01

Forest Management Plans completed 1 2 2 3

Forest Management Area (FMA) audits of compliance with the Code of Forest Practices 2 4 4 4

Top banner: Triplet falls, Otway Ranges Industry consultation Forest and Forest Top: Bushwalking at Cave Hill Industry framework completed nm nm 1 1

Compliance with key audit indicators in each FMA 90% 90% 90% 90%

Forest and Forest Industry framework completed by nm nm Jun 2001 Jun 2001

Strategies to address audit outcomes in each FMA completed by Jun 1999 Jun 2000 Jun 2001 Jun 2001

Audit of Compliance with the Code of Practices for Timber Production completed by nm Dec 1999 Jun 2001 Jun 2001

Indicative Cost (1) na na $5.1m $1.9m

1 Growing Victoria’s Forests Initiative has been rescheduled as a result of FISAP processes taking longer than estimated. Unspent funding has been allocated in 2001-02 to continue the initiative.

Natural Resources and Environment Annual Report 21 OUTPUT GROUP: FOREST MANAGEMENT

Toolangi rain forest Forest Production

OBJECTIVE FUTURE DIRECTIONS

To manage the commercial native forest business Logging Coupe Information and Roads • Work with industry and union stakeholders in Victoria in a sustainable and commercially Management Information Systems were to develop sawlog licence renewal strategies viable manner, which yields an equitable return developed with implementation planned for 2001- for consideration by Government. to the people of Victoria. 02. Wood Utilisation Plans were made available • Harvesting plans for each Forest on the Internet with the ability for customers to Management Area based on most up to date KEY ACHIEVEMENTS provide comment and feedback on proposed data and decision support tools to underpin Licence commitments were met and a revised Plans on-line. sawlog licence renewals will be developed. sawlog target of 740,000 cubic metres of sawlogs Changing supply arrangements (contract logging • Commercial thinning strategies will be was achieved in line with market demand. vs syndicated logging) in key parts of the State developed for all Forest Management Areas Residual log sales exceeded expectations with presented a significant logistical issue. to support small sawlog and residual log sales sales of 1,101,135 cubic metres, reflecting strong Discussions with the industry and unions will in the short term and increase sawlog market demand from overseas buyers and more continue in order to promote efficient harvesting availability in the medium to longer term. efficient utilisation of forest waste products. and distribution arrangements. • Implement Supply Chain management initiatives aimed at improving the scope and FINANCIAL AND PERFORMANCE MEASURES RESULTS quality of services and increasing the comp- etitive position of Victoria’s timber industry.

Published • Safety, health and well being will continue to Forest Production Actual Actual Target Actual 1998-99 1999-00 2000-01 2000-01 be a priority focussing on the identification and management of potential risks to staff Production volume - Sawlogs m3 (1) 920,000 922,000 920,000 742,400 working in forestry operations.

Production volume - Residual logs m3 700,000 955,000 600,000 1,101,135 • Strategic harvesting and business plans across

Production volume - Pulpwood m3 462,000 444,000 480,000 487,775 the State based on quality spatial data and decision support tools will be developed to Area of regrowth forest thinned 6000 5,250 5,250 4,300 improve the three-year planning framework.

Area regenerated successfully • Increasing international and national at first attempt nm 90% 90% 90% competition for markets in the forest products Wood Utilisation Plans provided sector will see a move away from low value to customers Mar 1999 Mar 2000 Mar 2001 Mar 2001 adding utilisation to higher value added Indicative Cost (2) na na $108.9m $116.7m commodities. The development of an integrated forest industries plan with input 1 Reflects a downturn in the market in line with recent industry forecasts. from all sectors will assist in maximising the 2 Reflects an increase in revenue related activity. competitive advantage that Victoria has in the growing harvesting and processing of forest products. Forest Production Actual 1998-99 Actual 22 Natural Resources and Environment Annual Report Recreational, Cultural and Community Forest Services

OBJECTIVE

Improve visitor experience in high use areas by A review of recreation and tourism infra- developing appropriate site linkages and structure for the Otways hinterland was providing high quality facilities that are completed. This project was established as customer-oriented, promote opportunities for a part of the West Victoria Regional Forest prosperous and sustainable tourism industry and Agreement and provides a detailed review increase community awareness of the policies of tourism opportunities in the Otway forests and prescriptions that underpin the variety of and identified priorities for future development. Merbein uses in State forest. This report is due to be published in 2001-02. Common KEY ACHIEVEMENTS FUTURE DIRECTIONS

Staff in the North East at Shepparton and • Complete the recreation infrastructure Project: Cummeragunja undertook the first NRE cross- database for all Forest Management Areas. The project is a partnership between Forest cultural workshop. Participants learned about • Implement relevant Recreation and Tourism Management, Mallee CMA, community groups Aboriginal culture and history, Aboriginal infrastructure priorities for the Otways and Sunraysia Murray Group Training to provide people’s knowledge about sustainable land hinterland using allocated Regional Forest training and employment for 12 disadvantaged management practices, how to involve Aboriginal Agreement funding. youths in rehabilitation and environmental communities in land management decisions, and management of Merbein Common and the • Complete the State Forest Naming Review ways of assisting in Aboriginal employment. associated Murray River frontage. that will provide comprehensive and easy A timber industry partnership was secured to identification of State forest for the benefit of expand the Forest Education Project’s program, the community. delivered to the Toolangi Forest Discovery Centre near Healesville, to additional schools across the State. FINANCIAL AND PERFORMANCE MEASURES RESULTS

Survey work was completed for new walking Published tracks at Mt. Cole State Forest (Mt. Cole/Mt. Recreational, Cultural Actual Actual Target Actual Buangor Walking Track) and Colquhoun and Community Forest Services 1998-99 1999-00 2000-01 2000-01

State Forest (linking the Bairnsdale to Orbost Recreation facilities maintained 196 190 199 199 railtrail with Lakes Entrance). The multi-use trail links the Bairnsdale to Orbost railtrail Regional community awareness strategies completed 3 3 2 2 with Lakes Entrance project. The East Gippsland Shire and Parks Victoria were involved in Proportion of recreation facilities assessed as in appropriate condition nm 90% 70% 75% this cooperative project that was overseen by a community-based steering committee. The Annual programmed maintenance of recreation facilities to be completed Dec 1998 Dec 1999 Jun 2001 Jun 2001 project was a partnership approach between Government agencies and the community and Regional community awareness involved an aboriginal cultural survey, an strategies completed Sep 1999 Sep 1999 Jun 2001 Jun 2001 historical survey, a flora survey and negotiations Indicative Cost na na $12.9m $13.9m with interested stakeholders.

Natural Resources and Environment Annual Report 23 OUTPUT GROUP: FOREST MANAGEMENT

Ironbark forest near Chiltern

Forest Resources Assessment and Analysis

OBJECTIVE FUTURE DIRECTIONS

Collection and analysis of forest resource • Complete SFRI mapping stage for the • The final “Old Growth” report for the information as a basis for the sustainable remaining two Forest Management Areas and West Victoria Regional Forest Agreement management of forest resources and values. tree measurement in another Forest will be completed. Management Area. KEY ACHIEVEMENTS • Resource data and analysis will be provided • Complete SFRI analysis and modelling to assist in developing a strategy for issuing The assessment phase of the Statewide Forest (phase two) and Sustainable Yield forecasts licences for native forest sawlogs. Resource Inventory (SFRI) projects was completed for a further two Forest Management Areas. for two further Forest Management Areas (FMA), however resources were redirected to assist in the FINANCIAL AND PERFORMANCE MEASURES RESULTS licence renewal process. The SFRI provides the basis of knowledge of the resources available such Published as the types, size, age and volume of trees in the Forest Resource Actual Actual Target Actual area and is used to provide authoritative future Assessment and Analysis 1998-99 1999-00 2000-01 2000-01 information on State forest resources. Reviews of sustainable yield or resource availability estimates completed nm 7 2 1 A review of sawlog yield estimates was completed for the Tambo and Benalla/ Statewide Forest Resource Inventory (SFRI) completed (1) 3 1 2 0 Mansfield FMAs. Spatial analyses and models completed to support forest management and policy support completed 2 7 2 2 Support continued for strategic biodiversity research activity focusing on broad based Sustainable yield reviews and timber resource (1) projects that enhance ecologically sustainable availability estimates based on SFRI data nm 2 2 0 forest management. An example of this research Analyses completed Jun 1999 Jun 2000 Jun 2001 Jun 2001 is the study of impacts of timber harvesting FMA inventories completed Jun 1999 Jun 2000 Jun 2001 Jun 2001 disturbance on the long-footed potoroo population in East Gippsland. Indicative Cost na na $8.0m $8.0m

1 The SFRI program for Tambo and Central Gippsland Forest Management Areas have been rescheduled for completion in the 2001-02 financial year.

24 Natural Resources and Environment Annual Report OUTPUT GROUP: FIRE MANAGEMENT

Water bombing provides a high level of success in fire control

Forests Service is responsible for the Fire Management Output Group. The Division provides services to protect the State’s natural resources by ensuring integrated management of fire and fire-related activities on public land for the purpose of protecting human life, property, assets and environmental values, and for sustaining biological diversity.

Fire Planning and Prevention

OBJECTIVE FUTURE DIRECTIONS

Preparation of plans, codes, prescriptions and a sound basis for assessment and improve- • Finalise the current phase of the guidelines that establish the framework for ment over coming years. Fire management Wombat Forest Fire Effects Study including effective fire management on public land and awareness strategies were also implemented workshops to incorporate knowledge into activities for the prevention of wildfire in all districts to improve community operational practice (community education and regulation). awareness over the controlled use of fire • Continue investigation of the Environmental as a tool to protect life and property from the Effects of Fire Retardant Use. KEY ACHIEVEMENTS harmful effects of wildfire. • Increase the application of Ecological Burning The Linton Coronial Inquiry was called in Fire Operation Plans for prescribed burning principles into the prescribed fire program. areas were prepared and made available to the response to the death of five Country Fire • Develop a quality assurance program to support public for all fire districts within the State. These Authority (CFA) volunteers at the Linton fire that training and accreditation of NRE firefighters. plans form the basis of operational work during started on private land and spread to public land. The fire was managed as a joint agency operation • Undertake an active program to encourage a the fire season and are an important means of between NRE and CFA. NRE was required to wider group of NRE staff to be involved in informing the community of intended work that provide resources and extensive information to the fire management duties. will reduce fire risk on public land. Coroner over the year. • Establish consultation processes for State and The first review of the application of the Code of Five Ecological Burning workshops were Commonwealth land rights, indigenous Practice for Fire Management on Public land was conducted in partnership with Parks Victoria heritage and environment legislation relating published this year. The review indicates the and Parks, Flora and Fauna Division to review to the development and implementation of Code is well established as a guide to the use of the implementation of guidelines. prescribed fire programs. fire in public land management and will provide

Natural Resources and Environment Annual Report 25 OUTPUT GROUP: FIRE MANAGEMENT

Australia-New FINANCIAL AND PERFORMANCE MEASURES RESULTS

Zealand Fire Published Actual Actual Target Actual Deployment Fire Planning and Prevention 1998-99 1999-00 2000-01 2000-01 to the USA Readiness and Response Plans completed 5 5 5 5 Audits of compliance with the During August and September 2000, a total of Code of Practice for Fire Management 98 fire controllers and fire support specialists on Public Land 1 5 3 4 from Australia and New Zealand fire and land Fire Protection Plans completed (1) nm nm 3 0 management agencies were deployed to the United States of America. They went to assist Compliance with key audit in managing the large number of serious recommendations in each region 75% 90% 90% 87.5% wildfires that had broken out across America. Strategies to reduce human caused NRE operated as the coordinator for fires implemented 5 5 3 3 Australian and New Zealand agencies. Readiness and Response NRE, together with Parks Victoria, provided Plans completed Dec 1998 Dec 1999 Nov 2000 Nov 2000 49 people for fire control roles and specialist equipment and aviation support, together with Assessments of Standards of Cover completed Nov 1998 Nov 1999 Nov 2000 Nov 2000 5 personnel from the CFA. The Australian and New Zealand officers Fire Protection Plans completed nm nm Jun 2001 Jun 2001 were able to adapt readily to the USA fire Indicative Cost (2) na na $23.9m $14.3m control system because of the high degree of compatibility between the USA, Australian 1 One plan has been prepared for public comment, with two more in final preparation for public comment, and New Zealand incident control systems. to be completed in 2001-02. During the five week deployment, Australian 2 Variance reflects an accounting reclassification of some expenses from this output to Fire Operations. and New Zealand officers were despatched to manage numerous wildfires in the northern Rocky Mountains.

NUMBER OF FIRES OVER 20 YEARS

1,200

1,000

800

600

400

200

0 1972-1973 1973-1974 1974-1975 1975-1976 1976-1977 1977-1978 1978-1979 1979-1980 1980-1981 1981-1982 1982-1983 1983-1984 1984-1985 1985-1986 1986-1987 1987-1988 1988-1989 1989-1990 1990-1991 1991-1992 1992-1993 1993-1994 1994-1995 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001

The most fire coincidence is due to drier forest conditions and greater number of lightning caused fires.

26 Natural Resources and Environment Annual Report OUTPUT GROUP: FIRE MANAGEMENT

Rake hoe work at Toolangi

Fire Operations

OBJECTIVE

Conduct preparedness activities that minimise the Based on this result there were 8.4% more fires, This is reflected by the high level of success in adverse impact of wildfire (hazard management, but the area burnt was significantly reduced by fire control on public land in regional Victoria. access, detection, stand-by, seasonal firefighters, 71% compared to the 20-year average. High Improved Occupational Health and Safety aircraft, and equipment) and response and ensure incidence of lightning did occur during early (OH&S) training and monitoring programs the capability of NRE to conduct recovery activities. January 2001, resulting in one period in which were introduced for staff and contractors for NRE had 151 fire reports over four consecutive fatigue management, driver safety and manual KEY ACHIEVEMENTS days. All fires were contained rapidly and no handling. An OH&S audit of all operational fire large-scale fires eventuated. NRE was engaged in the successful control of 616 towers was completed and a program of wildfires over the fire season. The total area of Training and accreditation of fire personnel replacement works commenced. land burnt as a result of wildfire was 30,040ha, of is crucial to fire fighting. NRE worked which nearly 9,000ha involved public land, closely with the CFA to ensure a high FUTURE DIRECTIONS compared to the 20-year average of 662 fires standard of incident preparedness and • Update fire management infrastructure, burning 108,794ha. training was achieved. including upgrading of fire towers and replacement of the Digital Line Scanner FINANCIAL AND PERFORMANCE MEASURES RESULTS to improve response capacity and fire information capture and analysis. Published Actual Actual Target Actual • Establish the State Aircraft Management Fire Operations 1998-99 1999-00 2000-01 2000-01 Unit to manage the deployment of aircraft Fuel reduction burning completed (1) 104,584ha 105,688ha 120,000ha 65,800ha resources to NRE and the CFA.

Fire controlled at less than 5ha 83% 75% 75% 86.8% • Establish interstate and international agreements for emergency response Fires controlled at First Attack 89% 75% 75% 94.5% support to facilitate effective and rapid Indicative Cost (2) na na $25.5m $50.2m deployment of resources as required in extreme emergency situations. 1 Fuel reduction burning was severely restricted by rapid transition from very dry conditions where burning would be unsafe to very wet conditions, associated with large rainfall events in autumn.

2 Additional funds were provided to meet additional fire preparedness costs and certain expenses reclassified from Fire Planning and Prevention output.

Natural Resources and Environment Annual Report 27 SECTIONOUTPUT GROUP: HEAD FISHERIES

Fisheries facilitates the sustainable development of Victoria’s regional, commercial and recreational fishing industries and aquaculture, and provides for management of Victoria’s marine and freshwater fish resources for the optimal benefit of the community with appropriate stakeholder participation.

Sustainable Fisheries Utilisation Services

OBJECTIVE

Management of fisheries resources in million native fish and 800,000 salmonid fish in fish fingerlings for stocking purposes and partnership with stakeholders as the framework over 150 waters thoughout the State. construction of a fish screen on the outlet to Lake Toolondo. Anderson’s and Shallow for sustainable utilisation of commercial and This included coordination of Departmental and Inlets were closed to commercial fishing following recreational fisheries. private releases and increased the opportunity for the buy-out of commercial Bay and Inlet fishing recreational anglers to catch fish. KEY ACHIEVEMENTS licences to ensure sustainable fisheries management. The Offshore Constitutional Settlement (OCS) Draft fishery management plans were developed Following nearly a decade of debate and analysis with the Commonwealth for shark was completed for the abalone and eel fisheries, the Bendigo by the rock lobster industry and fisheries and signed off by both the Victorian and the managers, the Minister for Energy and Resources Region and the Goulburn/Eildon Region to provide Commonwealth Governments. The Settlement announced in November 2000 that the fishery the framework for future management decisions. formally establishes management arrangements would placed on a quota management system from for shark fishing and provides greater assurance The Fisheries (Amendment) Act 2000 provided the opening of the season in November 2001. This for the commercial industry. a suite of reforms for the continued improvement system is already in place for rock lobster fisheries in the fisheries resources management of stronger Recreational Fishing Licence (RFL) revenue in the states adjoining Victoria. The fishery has enforcement provisions and management of approximately $243,000 provided funding suffered for many years from excess fishing processes. NRE worked in cooperation with for four new projects: two major fish habitat capacity and the rock lobster stock has been recreational fishing groups in releasing over one restoration projects, purchase of native scientifically assessed as being at historically

28 Natural Resources and Environment Annual Report Top banner: Seals basking in Port Phillip Bay Right: NRE’s Brad Smith explaining catch sizes to fishermen on St Kilda pier low levels in recent years. the quota manage- ment system allows industry and managers to more precisely control catch and therefore rebuild stocks over time. The Minister also FINANCIAL AND PERFORMANCE MEASURES RESULTS announced as part of the May 2001 Budget a $3.8 million structural adjustment package for Published the sector to ease the difficulties of moving to Actual Actual Target Actual Sustainable Fisheries Utilisation Services 1998-99 1999-00 2000-01 2000-01 the quota system. Management plans completed (1) 2 0 4 0 FUTURE DIRECTIONS Assessment reports of the status of Victoria’s • Develop management plans for all key fisheries and fish habitats completed 8 11 6 10 Victoria’s major fisheries by 2003-04. Proportion of major fisheries with mechanisms • Ecological sustainability indicators will be in place to monitor and report on performance against interim sustainability indicators 60% 70% 70% 70% developed for export fisheries to comply with new Commonwealth export requirements. Customer satisfaction with recreational fishing opportunities nm 64% >65% >65%

• Recreational Fishing Licences will be Stakeholder satisfaction with opportunities for participation by commercial fishing sector available for purchase on the Internet in management planning nm 64% 65% 65% with direct on-line point-of-sale capture of Assessment reports, plans and indicators completed Jun 1999 May 2000 Jun 2001 Jun 2001 licensee data and revenue. Surveys of Stakeholders completed Jun 1999 May 2000 Jun 2001 Jun 2001 • The joint Victorian/NSW management arrangements for the fisheries in Lake Hume Interim sustainability indicators for Victoria’s and Lake Mulwala will be completed. major commercial fisheries established nm nm Jun 2001 Jun 2001

• Negotiations will be undertaken with the Indicative Cost na na $17.4m $16.4m

Commonwealth and Tasmania on the Bass 1 Increased public consultation was undertaken. Plans to be finalised in 2001-02. Strait scallop fishery.

Natural Resources and Environment Annual Report 29 OUTPUT GROUP: FISHERIES

Industry and Community Compliance Services

OBJECTIVE

Education, inspection and enforcement services to NRE significantly contributed to the Victorian The result follows four months of investigation ensure industry and community compliance with Supreme Court decision to impose one of the and involved the seizure of 31,000 abalone, the legislation/regulations and management plans largest pecuniary penalty orders in the State’s largest seizure of abalone seen by the and the sustainable use of fisheries resources. history in October 2000. The order of nearly Department, and was achieved through the $980,000 was imposed on a person found to be strong relationship between NRE, the Police KEY ACHIEVEMENTS operating an illegal abalone processing factory in Asset Recovery Squad, the Office of Public 1,583 commercial and recreational fishing Melbourne. This result is of international Prosecutions and the Asset Confiscation Office. offences were detected during the year. significance in relation to fisheries crime A Junior Code of Conduct Education Kit was Enforcement operations led to over $1 million deterrence. As well as the order, the defendant initiated and supported by all states and worth of abalone, 20 cars and six boats being was sentenced to 18 months gaol and forfeiture of territories as well as New Zealand. This kit seized as well as diving and other equipment. the residence used to process the abalone, valued provides teachers with a program that educates A total of seven people were jailed. at over $50,000. children on the appropriate ways to fish, how to look after the environment and the importance of maintaining bag limits.

FINANCIAL AND PERFORMANCE MEASURES RESULTS Following re-designing and updating, over 280,000 copies of the ‘Vic Recreational Fishing Guide’ were distributed throughout the State. Published Industry and Community Actual Actual Target Actual The Net Amnesty program, which commenced in Compliance Services 1998-99 1999-00 2000-01 2000-01 April 2001, was extended to October 2001. The Compliance with legislation and regulations nm nm 90% 93% banned nets including mesh nets, drum nets, fyke (eel) nets, trammel nets and seine nets, are all Inspections conducted in the commercial sector 888 1,210 1,300 1,610 illegal in Victoria, except when used under a Recreational sector contacts made nm 27,106 30,000 33,817 commercial fishing licence or permit. The seized fishing nets will be assessed by United Nations Aquaculture operations checked nm 215 200 221 fisheries officers in East Timor to determine Successful court prosecutions nm nm 90% 99.5% their suitability for sustainable commercial

Investigations targeted to major illegal fishing groups nm 8 3 6 fishing application in the region.

Level of community understanding and acceptance FUTURE DIRECTIONS of fisheries regulations (1) nm 64% >60% >60% • Increase planned operations targeting illegal Proportion of fishing community that has seen (1) fishing, processing and marketing activity. fisheries educational material in the last 6 months nm nm >65% >65% • Increase focus on compliance in the comm- Community volunteers participating in fisheries education through the Fishcare Action program (2) nm 220 250 176 ercial rock lobster and giant crab fisheries.

Survey of stakeholders completed by May 1999 Jun 2000 May 2001 May 2001 • Improve communication with multicultural communities on fisheries issues leading to Indicative Cost na na $7.5m $7.8m greater awareness and compliance.

1 This value is an estimate only. Actual figures will not be available until the September Quarter 2001. • Inform recreational anglers about new bag 2 Inactive volunteers were removed from the program at the beginning of the year leading to a revised estimate. and size limits and new salmonid regulations.

30 Natural Resources and Environment Annual Report Aquaculture and Fishing Industry Development

OBJECTIVE

Provision of information and advisory services Part 1 of the two part ‘Key Investment Analysis’ • Management Plans will be developed to facilitate the development of profitable, was completed. This analysis will assist local for aquaculture growing areas. diverse, ecologically sustainable and well- government in identifying aquaculture • A recognisable labelling system managed aquaculture and fisheries industries. opportunities, government processes and will be developed for the aquaculture information sources as a ready reference guide. industry to facilitate compliance KEY ACHIEVEMENTS and food safety requirements and FUTURE DIRECTIONS The Aquaculture (Crown Land) Type A Licences review of the Victorian Shellfish were implemented to provide greater ability to • The Victorian Regional Aquaculture Quality Assurance Program to satisfy manage the shellfish aquaculture industry and Development Program (VRADP) will deliver AQIS requirements. assist in compliance with the Australian Shellfish policy development and licensing adminis- • Implement the Environment Sanitation Control Program. tration, extension, technical support to industry, Conservation Council recommendations applied research and a fish health service. A levy was placed on the shellfish industry to relating to aquaculture development. assist the funding of the Victorian Shellfish Quality • Aquaculture growing areas will be declared as • Expand Victoria’s Fish Health service Assurance Program and a nationally accredited Fisheries Reserves. capability to meet state and federal food and safety program was introduced. • The Yabby multi-waters provision will be ext- government and aquaculture The Aquaculture Development Committee ended through implementation of the Victorian industry needs, and international (ADC) was established to provide cross-agency Yabby Aquaculture Communication Strategy. export certification. coordination to manage efficiently and expedite the assessment of applications for aquaculture FINANCIAL AND PERFORMANCE MEASURES RESULTS development and develop baseline monitoring of Aquaculture growing areas. Published Aquaculture and Fishing Actual Actual Target Actual The Victorian Yabby Producer’s Manual was Industry Development 1998-99 1999-00 2000-01 2000-01 developed to define best practice production and Opportunities identified for new fisheries and safety standards for the industry including food value adding of existing wild fisheries harvest nm 5 2 2 risk audit advice. Proportion of aquaculture licences approved The Victorian Yabby Aquaculture within specified period - Crown licences nm nm 75% 72.8% Communication Strategy targeting the promotion Proportion of aquaculture licences approved and implementation of the multi-waters provision within specified period - Private licences (1) nm nm 75% 56.3% (New Enterprise Options Campaign) was Number of business development and assistance developed to encourage the uptake of enterprise contacts with fishing industry sectors 1,610 1,873 1,000 1,348 options by the yabby aquaculture industry. Annual evaluation completed within timeline A sterilisation protocol was developed and targets - Aquaculture and fisheries production Aug 1999 Jun 2000 Jun 2001 Jun 2001 implemented for the translocation of mussels by Annual evaluation completed within timeline shellfish farmers between Port Phillip Bay and targets - Aquaculture licence approval Jun 1999 May 2000 Jun 2001 Jun 2001 Western Port Bay, as well as between Tasmania Annual evaluation completed within timeline and Victoria, to reduce the spread of exotic targets - Industry assistance contacts Jun 1999 Jun 2000 Jun 2001 Jun 2001 marine pests. Indicative Cost (2) na na $4.0m $2.8m

1 A more extensive consultation process was undertaken that resulted in a number of applicants being notified outside of the 14 day approval process.

2 Reflects a reclassification of costs between Fisheries outputs following a review of expenses.

Natural Resources and Environment Annual Report 31 SECTIONOUTPUT GROUP: HEAD LAND MANAGEMENT AND INFORMATION

Land Victoria is responsible for the Land Management and Information Output Group. The Division provides authoritative, comprehensive and easily accessible land information and management systems to underpin effective decision making and appropriate use of land.

Public Land Management

OBJECTIVE

Active management of Crown land to ensure a A total of 25 projects were delivered under the balance between protection and development of Caravan Park Upgrade program and generated natural and cultural assets. $4.5 million worth of works on Crown land. The program aims to improve the standard KEY ACHIEVEMENTS of amenities, reduce the impact on the The second year of the Crown Land Improve- surrounding environment and place facilities ment program was delivered and comprises 180 in a more viable operating position. projects that generated $4 million worth of works Draft Native Title ‘future act’ guidelines and on Crown land reserves. This program aims to procedures were prepared to provide ‘whole of assist delegated Committees of Management to government’ guidance to agencies and statutory maximise the community benefits of the reserves authorities carrying out activities on Crown land under their control and to manage public risk. and waters.

FINANCIAL AND PERFORMANCE MEASURES RESULTS FUTURE DIRECTIONS

Reform the Land Act and Crown Land Published Actual Actual Target Actual (Reserve) Act to streamline leasing and Public Land Management 1998-99 1999-00 2000-01 2000-01 licensing of Crown land and better support committees of management. Land Administration transactions per year 404,000 418,000 385,000 355,000 Lead government wide awareness of Number of client complaints as a ratio of Native Title ‘future act’ guidelines and Land Administration transactions 1:80 1:104 1:92 1:80 develop knowledge within government

Client inquiries responded as per Statute and the wider community on management or by Service Agreements 98% 95% 96% 92% of native title claims and future acts.

Indicative Cost (1) na na $27.6m $24.5m

1 Variance reflects a redistribution of costs relating to the Titles Automation Project and Land Registry to the Land Definition Output.

32 Natural Resources and Environment Annual Report Top left: Victorian Deputy Registrar General, Richard Jefferson, compares old general law titles written on goatskin with a current Torrens title Left: Transformation of the Yarrowee River in Ballarat involves community groups in restoration work and top banner: Rail trail at Myrtleford Land Information Services

OBJECTIVE FUTURE DIRECTIONS

The provision of accurate, reliable and authoritative demonstration pilot for the Vendor Statement • Develop a commercial pilot system for information on boundaries, interests, valuations Certificates Online (VSCO) project in retrieving the Vendor Statement Certificates Online and other land-related data about public and Section 32 information from Land Victoria’s titles project. Application interfaces for the privately owned land. database and Melbourne City Council’s rates Victorian Online Titles System and database. NRE worked in partnership with other transaction tracking applications will KEY ACHIEVEMENTS holders of Section 32 information on this project. be developed. NRE provided 800,000 title searches, an increase of Relevant policies for the co-ordination and • Improve access to geospatial data on Land 26,000 on the previous year, and 260,000 instrument management of spatial information in Victoria Channel. Expansion and integration of (eg. caveats, covenants and transfers) searches, to were developed to meet the expectations of property transactions and information (maps support the property industry. stakeholders and are achievable within the and text) will be the major focus for the Land Land Channel, the Victorian government website for constraints of existing legislation. Channel in 2001-02. information and services about land and property, This was undertaken in partnership with • Provide fully integrated land records online achieved over one million hits in 2000-01. The site stakeholders through the Geospatial Information for both Crown and freehold and supporting also recorded 1,550,000 page impressions (including Reference Group. documents (titles, instruments and plans). maps) for the year against an estimate of 750,000. 13,500 unique users were recorded to June 2001, up FINANCIAL AND PERFORMANCE MEASURES RESULTS from 2900 in July 2000.

The Global Positioning Systems (GPS) base station Published network was expanded with 9 new base stations Actual Actual Target Actual established in regional Victoria. These base stations Land Information Services 1998-99 1999-00 2000-01 2000-01 will stimulate the use of leading-edge satellite Information requests processed per annum 3,560,000 5,905,000 5,955,000 6,919,000 positioning solutions across the state and in regions where they are located. Error rate for Titles and Instrument information searches <1% <1% <1% <1% GPS network, in tandem with Vicmap Digital, Customer satisfaction level for Geospatial Information 95% 90% >90% na provides regional locations with the latest spatially related IT infrastructure. The precision of Titles and instruments searches requests available within 24 hours 95% 95% 95% 95% information available through the GPS network can support mapping, land development and Geospatial Information delivered within construction of major infrastructure such as the timelines negotiated with customers 95% 95% 95% na proposed City to Airport rail link. Indicative Cost na na $46.6m $49.0m An online service to deliver vendor statement and 1 A survey was sent to participants in early July 2001 to gauge satisfaction over the year. other property information to consumers can now be developed following the success of the

Natural Resources and Environment Annual Report 33 OUTPUT GROUP: LAND MANAGEMENT AND INFORMATION

The Land Information Infrastructure Initiative

developed key datasets to improve the quality and Top left: District survey office at Beechworth Top right (left to right): Titles office. All roads in Victoria are now recorded performance of the fundamental land information on the State’s digital map base, Vicmap Digital. Aerial photograph infrastructure for Victoria. of regional Victoria. (photo AUSLIG)

Land Definition

OBJECTIVE

To provide authority and confidence for Vicmap Property became the authoritative source The Land Information Infrastructure Initiative government and private transactions in for property and parcel information for Victoria developed key datasets to improve the quality the land market by maintaining, recording with more than 80 per cent of councils participating. and performance of the fundamental land and updating records relating to the For the first time information returns by councils information infrastructure for Victoria. definition of land (boundaries, interests, provided consistent data sets of valuation This initiative includes a complete satellite- valuation and other land-related data). information or property descriptions. This included image mosaic of Victoria, using 2000 LandSat7 the property use code, age of building, type of KEY ACHIEVEMENTS satellite imagery, and a digital elevation model construction, size of building and valuation. of Victoria. Conversion of all paper documents to electronic Organising and converting Vicmap Digital (the format was completed. This enables online, state’s digital map base) into customer-preferred FUTURE DIRECTIONS remote searching throughout Victoria. The formats and managing customer expectations on 5 million converted documents include titles, delivery timeframes was also achieved. • A new Victorian Online Titles System will instruments eg caveats, convenants, plans A national ‘Cadastral-Lite’ product, Australia’s become operational in November 2001. and survey field notes. first single national cadastral dataset of each of • Further dataset development under the the 10.2 million land parcels in the country, was Land Information Infrastructure Initiative The Electronic Conveyancing Victoria (ECV) developed by Land Victoria on behalf of State, will include new versions of Vicmap Model was developed and endorsed by the Federal and Territorial mapping agencies. These Australasian Registrars of Titles. This provided Elevation and Hydro datasets that will agencies are members of the Public Sector the basis for a national approach to electronic be developed in consultation with Mapping Agencies. conveyancing. The development of the model stakeholders. Work will also start on was achieved by working in partnership with Registration services were provided for 670,000 Vicmap Boundaries that will incorporate stakeholders. Rollout of ECV will necessitate land title dealings and 8,050 subdivision plans. local government areas, localities, legislative changes and require support from 3,610 parcels of General Law land were converted postcodes and electoral boundaries for several State Government departments. to Torrens title. the three tiers of government.

34 Natural Resources and Environment Annual Report Vicmap Roads – completion of roads across the State

All roads in Victoria, from major highways to The project was completed using a panel of Vicmap Digital Roads and Vicmap Digital Topo- obscure fire tracks, are now recorded on the State’s contractors and a NRE project team. graphic are continuously updated and maintained. digital map base, Vicmap Digital. The system maps out four-lane highways, pot-holed Appropriate authorities, such as local government, The two-year, $2.9 million Emergency Services laneways, bush goat tracks, suburban streets, four- VicRoads and NRE, supply updated roads Initiative Project, administered and managed wheel-drive tracks, cobblestone alleys, freeways, information for input on a regular basis. by NRE, has extended the map base’s coverage closed roads and also fire tracks - embracing every The system provides immediate benefits for emer- from the greater metropolitan area across the trafficable road within Victoria as well as more than gency services in rural and regional areas of the state. entire state. 2 million addresses and 2,900 localities.

FINANCIAL AND PERFORMANCE MEASURES RESULTS

Published Actual Actual Target Actual Land Definition 1998-99 1999-00 2000-01 2000-01

Land units (parcels/ properties) defined per annum (1) 1,475,000 1,613,000 1,073,000 874,000 • A Rural Addressing Project to complete rural property addressing for Victoria will Error rate for registration of land dealings and creation of new titles <1% <1% <1% <1% commence. NRE will work with local government in the 55 affected municipalities Audited map base update transactions found to be correct nm 95% 95% 92.5% to name roads, allocate numbers and clearly signpost property entrances. Land dealings registered within 3 weeks 81% 84% 70% 82.8%

• Property Online will be developed to New titles created within 4 weeks 42% 84% 40% 83.3% establish a framework for Government Update transactions for the cadastral map base to assemble, link, integrate and deliver processed within 2 weeks 95% 95% 95% 97% land information and transactions Indicative Cost (2) na na $26.9m $34.9m electronically to the community, business and industry. 1 Reflects a decrease in the number of maintenance updates required. 2 Includes a redistribution of costs from the Public Land Management Output and a one-off unscheduled depreciation expense.

Natural Resources and Environment Annual Report 35 OUTPUT GROUP: CONSERVATION AND RECREATION

Parks, Flora and Fauna Division is responsible for the Conservation and Recreation Output Group. The Division provides integrated services that deliver aspects of the Government’s conservation and recreation policy agenda to ensure that the environmental, conservation and recreational values of Victoria’s land, marine and freshwater resources are maintained and enhanced for the benefit of current and future generations. The Division assists land managers to maintain and improve biodiversity conservation, oversees management of the parks and reserves system, local ports, coastal reserves and the Alpine Resorts, and provides opportunities for recreation, tourism and environmental education and research.

Coastal Planning and Management Services

OBJECTIVE

To improve the understanding of and A sand transfer system, worth $1.3 million, was The previous lower landing was demolished adherence to the principles of Integrated purchased and installed at Lakes Entrance. because deterioration caused it to be unsafe. Coastal Zone Management. This system increases the safety and navigability With attention to risk management, of channels in and around Lakes Entrance by $1.1 million was invested in remedial works KEY ACHIEVEMENTS transferring sand dredged from within the lakes to unstable cliffs, improvements in water system to the outer coast where it no longer The Draft Victorian Coastal Strategy 2001 was safety signage and maintaining an ability impacts upon the channels. released in April for public comment. The draft to respond to emergency situations (storm strategy establishes a vision for the coast and A $1.8 million lower landing construction events etc.). A focus was also placed on provides a framework for appropriate and commenced in the Apollo Bay harbour. The recreational infrastructure statewide including considered planning across both coastal and landing will be used by the commercial fishing updated visitor facilities eg. carparks, toilets marine environments. fleet to unload their catch. and picnic areas.

36 Natural Resources and Environment Annual Report Marine Pests

Victoria continued to play a leading role in dealing identify the way that small vessels and gear can lead Australian Quarantine Inspection Service and with marine pests in Australia. to accidental movement of marine pests to new areas. CSIRO Centre for Research on Introduced Marine NRE and other Victorian Government agencies have In January 2001, NRE joined with the Environment Pests, to trial arrangements at the port of Hastings. joined forces with industry and community groups to Protection Authority (EPA), Department of In June 2001, Victoria hosted a scientific review of help stop marine pests being introduced. Actions Infrastructure (DoI) and marine industries, to launch recent work on the Northern Pacific Seastar. The include working with the aquaculture industry to an interactive display on ballast water at the review was conducted by leading scientists from identify novel ways to clean marine pests from Southbank Aquarium and announced the trial of a Victoria’s Marine and Freshwater Resources mussel ropes. NRE is also working with local port national approach to the management of ballast Institute, CSIRO Centre for Research on Introduced operators in Victoria and southern NSW, and CSIRO water. Victoria’s contribution is led by the EPA Marine Pests and Melbourne, Monash, Deakin and Centre for Research on Introduced Marine Pests to which, with NRE and DoI, is working with the Tasmanian Universities.

FINANCIAL AND PERFORMANCE MEASURES RESULTS FUTURE DIRECTIONS

• Ensure continued improvement in Published Coastal Planning and Actual Actual Target Actual statutory processes. Management Services 1998-99 1999-00 2000-01 2000-01 • Improve outcomes for coastal users and Visitor numbers accessing piers and Jetties nm 6.9m 6.9m 8.4m business by developing consistent management policies and guidelines. Ports under management with an approved risk management plan 75% 100% 100% 100% • Improve local port management through the implementation of new strategies. Volunteer-days in coastal action programs 5,000 4,000 3,000 3,000 • Encourage community involvement Coastal Action plans prepared 5 3 3 3 in coastal management to strengthen and Overall Customer satisfaction with encourage coastal conservation. Pier and Jetty services (100 point index) nm 54 60-65 52 • Develop guidelines to reduce the risk of Victorian Coastal Strategy actions commenced translocation of marine pests in local ports. by 30 June 91% 90% 95% 95% • Establish a rigorous and financially Victorian Coastal Strategy actions completed by 30 June 20% 42% 65% 65% responsible coastal risk management program.

Indicative Cost (1) na na $13.9m $25.2m

1 Variance is due to a reclassification of certain expenses from the Asset Investment Program to Outputs.

A strategic approach and rolling program This control plan for a marine pest is a was commenced for beach renourishment world first. NRE is working with Fisheries, and asset maintenance for the 25km other Government agencies, the marine of beaches around Port Phillip Bay in industries and the community to reduce consultation with the Association of the chance that the Seastar will be spread Bayside Municipalities. by ships ballast water, the movement of mussel ropes, and movement of small Victoria agreed to national measures to vessels to new areas in Victoria. NRE will reform Australia’s approach to marine pest be assisting in extension programs that management, including the National Control will enable the accurate identification of the Top banner: Northern Pacific Seastar (Photographer Rod Knights) Plan for the Northern Pacific Seastar. Northern Pacific Seastar pest. Top: Work on the beach renourishment program around Port Phillip Bay

Natural Resources and Environment Annual Report 37 OUTPUT GROUP: CONSERVATION AND RECREATION

The ‘BushTender’ pilot program, launched in June 2001, was established to achieve improved vegetation management with landholders.

Biodiversity Conservation Management Services

OBJECTIVE

To assist the Victorian community to achieve Action Statements for 35 items were • Continue work on the prevention better biodiversity conservation outcomes prepared. The listing of threatened species, of the introduction of new marine in the context of the ecologically sustainable communities or processes is driven by pest species to protect the sensitive development of our natural resources. public nomination. Each year the Scientific marine environment.

Advisory Committee (SAC) makes • Expand the ‘BushTender’ pilot project. KEY ACHIEVEMENTS recommendations to the Minister based • Undertake research to identify and develop The ‘BushTender’ pilot program, launched on these nominations. biodiversity friendly production systems to in June 2001, was established to achieve The Biodiversity Research Strategic Plan enhance off-reserve conservation. improved vegetation management with 2000-2005 was released in November 2000. landholders. The program will conduct • Assessment of threats posed by salinity a trial of formal contractual arrangements to the conservation of biodiversity and FUTURE DIRECTIONS between landowners and the Government identification of opportunities to use natural to manage native vegetation on private land. • Respond to Environment Conservation system processes to manage salinity while The trial, conducted in partnership with the Council’s recommendations for delivering additional biodiversity Agriculture and Catchment and Water Divisions, additions to the park estate of under- conservation spin-offs. represented ecosystems. aims to develop and test a biodiversity index, • Develop Biodiversity Bioregional Plans for landholder acceptance of management • Improve management of the park Riverina, Northern Inland Slopes, Victorian agreements and tendering mechanisms. estate through the development of a Volcanic Plains and Gippsland Plains Forty four items were listed for protection under performance reporting system for natural bioregions which provide information for the Flora and Fauna Guarantee Act 1988 and resource management. land managers.

38 Natural Resources and Environment Annual Report Entrance to the Gippsland Lakes

FINANCIAL AND PERFORMANCE MEASURES RESULTS

Published Biodiversity Conservation Actual Actual Target Actual Management Services 1998-99 1999-00 2000-01 2000-01

New species listed for protection under the Flora and Fauna Guarantee Act 0 52 50 44

Protected species, communities and potentially threatening processes with new approved Action Statements under the FFG Act 16 20 30 35

Hunting and wildlife licenses managed 38,970 38,604 35,000 36,935

Proportion of Victoria covered by Additional Ecological Vegetation Community mapping (1) 35% 25% 5% 3%

Threatened species with demonstrable improvement 26 20 20 20

Proportion of new Land for Wildlife properties which include habitat under-represented in reserve system 49% 27% 20% 20%

Agencies having agreed action plans under the FFG Strategy nm nm 10 10

Local government authorities and CMA’s assisted with information on the FFG Strategy and incorporating actions into the planning schemes nm nm 20 20

Input to planning approvals process provided within statutory time-frames 100% 100% 100% 100%

Indicative Cost (2) na na $10.3m $18.9m

1 EVC mapping progress is expressed as “additional percentage of Victoria covered”. 88% of Victoria is now covered.

2 Includes carry forward from 1999-2000 and a redistribution of costs between Conservation and Recreation outputs following a rewiev of expenses.

Natural Resources and Environment Annual Report 39 OUTPUT GROUP: CONSERVATION AND RECREATION

The parks system was enhanced through additions to the Alpine National Park, including the incorporation of 285ha of land at Mt McKay, Organ Pipes National Park, Yarra Ranges National Park, Kamarooka State Park and Gippsland Lakes Coastal Park.

Park Management Services

OBJECTIVE

To oversee the management and expansion of The Water Industry (Amendment) Act A ten-year program to map and describe Victoria’s renowned parks and reserves system, 2000 will formally wind up Melbourne Victoria’s marine and estuarine habitats and and historic properties, to ensure their protection, Parks and Waterways (MPW) by December 1, associated flora and fauna was completed. conservation and enjoyment for present and 2001. MPW, a residual statutory authority future generations. following the creation of Parks Victoria, FUTURE DIRECTIONS currently owns significant areas of parkland • Continue the development KEY ACHIEVEMENT throughout metropolitan Melbourne that of a comprehensive, adequate A State of the Parks 2000 report was will be transferred to the Crown for and representative parks and released. The report consolidates permanent reservation. reserves system. environmental information on Victoria’s NRE developed the Government’s response • Finalise the Cultural Sites Network key parks into a comprehensive picture to the Environment Conservation Council’s and actively apply it to historic of the overall ecological health of the parks Marine, Coastal and Estuarine Investigation place management. system and establishes strategic priorities Final Report. The National Parks (Marine • Undertake significant upgrades to for its protection. National Parks and Marine Sanctuaries) Bill facilities at major visitor sites at the The parks system was enhanced through sought to establish 12 marine national parks Mt Buffalo, Grampians, Bay of Islands, additions to the Alpine National Park, including and 10 marine sanctuaries. The Bill was Port Campbell national parks and the the incorporation of 285ha of land at Mt McKay, subsequently withdrawn from Parliament Williamstown precinct. Organ Pipes National Park, Yarra Ranges after the Government was unable to secure National Park, Kamarooka State Park and sufficient support for key provisions of Gippsland Lakes Coastal Park. the proposed legislation.

40 Natural Resources and Environment Annual Report Helmeted Honeyeater release into Bunyip State Park

The Helmeted Honeyeater Recovery Team, Parks Victoria, NRE and the Healesville Sanctuary commenced the reintroduction of the Helmeted Honeyeater, a critically endangered bird, to Bunyip State Park. In January 2001, eight Helmeted Honey-eaters, bred and raised in onsite aviaries, were released into the park. This was the first release of Helmeted Honeyeaters into the park.

Protection of

Top banner: Skiers on Mt Baw Baw, top: Anglesea Heathland and right: Helmeted Honeyeater (Photographer Peter Menhorst) Anglesea Heathland

In November 2000, the Anglesea Heathland partnership agreement between NRE and Alcoa Australia FINANCIAL AND PERFORMANCE MEASURES RESULTS was launched. The 7,000 hectare heathlands make a vital contribution to Victoria’s biodiversity. They will Published be managed in conjunction with the Actual Actual Target Actual Park Management Services 1998-99 1999-00 2000-01 2000-01 adjacent Angahook-Lorne State Park to ensure protection of over 620 plant Victoria’s land base in protected parks and reserves 14% 16% 16% 16% species, including five plant species that are rare or threatened at a national Visitor numbers accessing parks services 15m 27.8m 29m 29.9m level, the endangered New Holland Length of road/track maintained 20,485km 14,433km 14,433km 14,433km Mouse and the Powerful Owl. The partnership involves Surf Coast Shire (1) National Parks Act with management plans 100% 93% 100% 94.5% and local interest groups. Overall Customer satisfaction with park services (100 point index) 73 69 70-75 66

100% of National Park Act park management plans submitted (1) Jun 1999 Sep 2000 Jun 2001 Sep 2001

20 per cent of priority tasks completed Jun 1999 Jun 1999 Jun 2001 Jun 2001

Indicative Cost (2) na na $143.3m $138.6m

1 Plans outstanding are pending final agreement with Aboriginal communities and are expected to be finalised mid 2001-02.

2 Reflects a redistribution of costs between Conservation and Recreation outputs following a review of expenses.

Natural Resources and Environment Annual Report 41 OUTPUT GROUP: AGRICULTURE

A lead role was taken in the development of a National Livestock Identification Scheme for quality Top banner: Victorian wine, fruit and cheese export beef production.

Agriculture is responsible for the delivery of strategic services to the food and agriculture sector that support the revitalisation of rural and regional Victoria. These services address key growth, environmental and social challenges across the agriculture ‘value- chain’ from natural resource management, farm production systems and food processing through to food quality for consumers.

Services to Improve Market Access, Market Development and Consumer Confidence in Food and Agriculture Products

OBJECTIVE

To support the maintenance and growth This scheme supported the continued export The National Competition Policy for of Victoria’s export markets for food and of Victoria’s beef products during the Foot and the dairy industry was implemented. agriculture products. Mouth Disease outbreak in the UK. This policy included the establishment of both Dairy Food Safety Victoria and An innovative policy mechanism was KEY ACHIEVEMENTS the Geoff Gardiner Foundation. developed for protecting the environment. NRE contributed to improved export This mechanism provides a market based Victoria’s food safety policy and performance by ensuring that Victoria has system for valuing and managing Victoria’s program was jointly developed with systems that demonstrate the disease and environmental values. This mechanism is the the Department of Human Services chemical free status of our products. basis of the ‘BushTender’ project conducted in and the Commonwealth Government, A lead role was taken in the development of a partnership with Parks, Flora and Fauna and and provided as input to the Federal National Livestock Identification Scheme for Catchment and Water Divisions and will be Food Safety framework. quality export of beef production. trialed in 2001-02.

42 Natural Resources and Environment Annual Report Naturally Victorian Initiative

Emphasis was placed on increasing food producers’ • Facilitated 12 Victorian food companies in show at Kitakyshushu, Japan in October 2000. knowledge of export markets and improving reliability exhibiting their produce, especially meat products, • Promoted a new range of Victorian food products to of supply of food that is ‘clean’ and produced using at the Gulf Food Trade Show in Dubai. buyers from Korean tourist hotels and restaurants best animal welfare, environmental and biodiversity • Hosted 160 Asian buyers at the Fine Food • Facilitated an inwards buyer visit from the conservation practices. Exhibition in Melbourne Singapore Shop n Save supermarket chain Strategies included exhibiting Victorian produce at • Supported 20 Victorian food companies exhibit at resulting in fresh produce, especially tomatoes international and national trade shows and promotion the Hofex trade show in Hong Kong being exported of new food products to international buyers. This • Sponsored the Harvest Picnic at Hanging Rock year NRE: The availability of current market information for • Recruited 17 agribusinesses to attend the food trade growers is available through the NRE external web site.

FINANCIAL AND PERFORMANCE MEASURES RESULTS

Services to improve market access, market Published development and consumer confidence Actual Actual Target Actual in food and agricultural products 1998-99 1999-00 2000-01 2000-01

Strategic pest, disease and residue control initiatives developed to assist industry to maintain and expand markets nm 4 4 4

Agribusiness export deals directly facilitated nm nm 30 39 FUTURE DIRECTIONS Major reforms which conform with state and • On-going implementation of the national policy objectives for national competition, Naturally Victorian Initiative that aims food safety and product integrity completed nm nm 2 2

to enhance exports of agricultural and Proportion of performance audits by international and food products, by improving market national certification authorities meeting required standards nm 100% 100% 100% access and assisting groups of farmers Compliance with relevant industry standards and small food producers to improve for chemical use and animal welfare nm 97.5% >95% >95% their marketing performance. Strategic quality assurance initiatives completed nm Jun 2000 Jun 2001 Jun 2001 • Implement the Agriculture Food Safety Strategy. Completion of industry competitiveness initiatives nm Jun 2000 Jun 2001 Jun 2001 • Increase level of preparedness Response time to all pest, disease and disaster incidents (hours) nm <24 <24 <24 and response for animal and plant diseases. Indicative Cost (1) na na $44.3m $51.9m

1 Includes carry over of funding from 1999-00.

Natural Resources and Environment Annual Report 43 SECTIONOUTPUT GROUP: HEAD AGRICULTURE

Development of Next Generation Technologies for Sustainable Agriculture

OBJECTIVE

To develop the technologies, knowledge and systems that underpin productive and sustainable food and agriculture industries.

KEY ACHIEVEMENTS

Technologies were developed to reduce the demand on natural resources. These include improved water use efficiency systems for the horticulture industry, improved soil, pasture and nutrient management systems for the grazing industries and research and trialing of systems to enhance on-farm biodiversity. FINANCIAL AND PERFORMANCE MEASURES RESULTS Ongoing productivity gains were supported by the development of new technology such as Published Development of next generation Actual Actual Target Actual molecular testing technology for the rapid technologies for sustainable agriculture 1998-99 1999-00 2000-01 2000-01 establishment of disease resistant chickpeas. The release of new pasture varieties that underpin Research and development projects in progress (average) nm nm 220 220 Victoria’s grazing industries and the release of new varieties of grains that meet specific market Total value of external investment by industry in research and development projects $14.7m $18.4m $14.5m $16.7m requirements and provide growers with greater management options. Commercial technology research and development agreements finalised nm nm 50 60 NRE is developing new alliances and partnerships with industry bodies, universities New/improved products or systems available for application nm nm 5 5 and cooperative research centres to improve integration of future research and development. Technical publications in international and peer review journals (1) nm nm 140 283 These alliances will contribute to the building of science research and development infrastructure Proportion of national agriculture industry investment funds 9% 9% 9% 9% required to support NRE’s programs over the next 10 years. Number of applications for publicly owned and protected Intellectual Property nm nm 5 14 FUTURE DIRECTIONS Completion of annual project milestones nm nm >90% >90% • Increase NRE’s investment in Indicative Cost na na $109.9m $110.4m improved environmental and resource management systems. 1 This reflects greater acceptance of NRE publications in international journals.

44 Natural Resources and Environment Annual Report Community, Farm and Industry Development Services

OBJECTIVE

To accelerate the implementation of best practice the adoption of wine growing systems that The findings of the Monash University report on systems that underpin sustainable and productive increased profit and used water more efficiently. ‘Understanding and leading positive social and food and agriculture industries. economic change in rural and regional Victoria’ Farmer groups increased their participation in were explored in a series of workshops with NRE’s research and development trials. These regional stakeholders. KEY ACHIEVEMENTS trials encourage the end user adoption of Farmer participation in best-practice programs innovative NRE products. FUTURE DIRECTIONS was increased by 7.3%. This participation Local industries increased their participation in • Implement the FarmBis program in relates to agriculture industry training and regional agribusiness throughout the state. Victoria that aims to improve the business skills development programs such as the dairy The ‘Food and Agriculture in the Classroom’ skills of farmers. industry Target 10, wool industry Bestwool and project raised awareness through the primary • Provide more effective support for rural and grains industry Topcrop. school program of where and how food is regional communities in anticipating, leading Benchmark studies show increased adoption of produced. The secondary school program and managing change. sustainable and productive farming systems. For provided information about career opportunities • Improve stakeholder access to on-line example the Grapecheque program demonstrated in agriculture and related sciences. extension services and resources information.

FINANCIAL AND PERFORMANCE MEASURES RESULTS

Published Community, farm and industry Actual Actual Target Actual development services 1998-99 1999-00 2000-01 2000-01

Community, farm and industry development projects in progress nm nm 50 50

Total value of external investment by industry in delivery of best practice systems $2.5m $2.0m $2.5m $3.2m

Increase in the proportion of farmers involved in best practice programs nm nm 4% 7.3%

Proportion of national agriculture industry investment funds 5% 5% 5% 5%

Proportion of strategic plans and priorities developed in consultation with industry/community stakeholders nm nm >95% >95%

Completion of annual project milestones nm nm >90% >90%

Indicative Cost na na $16.9m $17.7m

Top left: Felicity Prichard recording grain weight Top: NRE's Jenny Cowan with a student at the 'Food and Agriculture in the Classroom' website launch

Natural Resources and Environment Annual Report 45 OUTPUT GROUP: CATCHMENT AND WATER

Increased metering and monitoring of ground water and surface water utilisation was achieved.

Catchment and Water is responsible for creating strong partnerships with communities, statutory authorities and government to achieve healthy rivers and catchments that protect and enhance the environment while supporting sustainable and more productive resource industries and regional communities. The Division also manages Victoria’s water resource allocation framework and advises the Victorian Government on the performance of the water sector.

Catchment Information Services

OBJECTIVE

Collecting, analysing and disseminating decisions on the sustainable development and of the cornerstone datasets required for the information about catchment and water protection of the State’s catchments and water. understanding and reporting of the condition management to assist landholders, industries, of our catchments and for the analysis of the A Regional Data Net program was developed catchment communities and decision makers to effectiveness of investments in catchment to provide geographic information at the manage and protect these resources to optimise management programs. regional/local scale to manage catchments. environmental, economic and social outcomes. The infrastructure made available by the The provision of flood data to councils, KEY ACHIEVEMENTS Regional Data Net program has, for the first time, catchment management authorities and the provided all Victorian regions with easy on-line Victorian SES throughout rural and regional Victoria provided comprehensive social, economic access to complex land and water information at Victoria has significantly improved the and environmental data to the National Land and regional and Statewide level and has increased management of flood risk within the community. Water Resources Audit (NLWRA) on water their capacity to use Geographic Information The information is provided in digital format and availability, dryland salinity, extent and Systems (GIS) to manage catchments. Under this can be used for planning schemes and emergency management of vegetation, agricultural program the Catchment Activity Management on management plans and strategies. productivity and sustainability, capacity for line system was established to allow regional staff change, and ecosystem health. As a result (both NRE and CMA) to capture information Increased metering and monitoring of ground Victoria is well placed to use NLWRA about the location and extent of on-ground water and surface water utilisation was achieved assessments on land, vegetation and water catchment activities (eg planting of native through the development of ground water and resources to make sound current and future vegetation). This information will provide one stream flow management plans.

46 Natural Resources and Environment Annual Report Tree planing along waterways

River Basins of Victoria

FINANCIAL AND PERFORMANCE MEASURES RESULTS

Published Actual Actual Target Actual Catchment Information Services 1998-99 1999-00 2000-01 2000-01 FUTURE DIRECTIONS Indicators of catchment condition developed to • Increase Web based services to land and report on the quality of land and water resources nm nm 12 11 water managers and community groups Sites monitored for water quality 109 109 109 109 including ‘Landcare’ portal and Native Number of people accessing Government sponsored Vegetation Permit Tracking system. This catchment and water related web sites nm nm 12,000 49,274 service will record and report on catchment activities and will support GIS capacity in Area of native vegetation protected or rehabilitated 1,600ha 1,600ha 1,600ha 1,620ha

regional offices. Area of private forestry established (1) 12,000ha 25,000ha 25,000ha 20,030ha • Develop a comprehensive tool kit that will Satisfaction of landholders in targeted areas assist in the development of streamflow with the quality of information available for technical support programs for catchment management plans and the allocation of and water management nm 70% 70% 70% new water licences. Data capture and reporting system for Victoria’s • Invest in data collection, analysis and catchment and water managers commissioned nm nm Jun 2001 Jun 2001 interpretation, including funding local Transect survey system for monitoring pest animal governments to implement Code of Forest numbers established nm nm Apr 2001 Apr 2001 Practices on private land. Indicative Cost (2) na na $29.7m $14.3m Published

1 Changes to tax laws have hampered efforts of plantation developers.

2 Reflects a redistribution of costs between Catchment and Water outputs following a review of expenses.

Natural Resources and Environment Annual Report 47 OUTPUT GROUP: CATCHMENT AND WATER

The community was responsive to the issues raised in the Taskforce process through the support for an integrated approach to land and water management …

Measures to control salinity in local areas and on- ground works to combat the effects of salinity have been funded according to regional priorities. Community Land Projects addressing surface drainage to control the spread of salinity problems received funding and Water Management of $4.8million. An agreement was also reached between Victoria, OBJECTIVE NSW, SA and the Commonwealth governments for a Murray Darling Basin Salinity Management Community and industry engagement in planning, weed and catchment management projects. Strategy to manage River Murray salinity levels A further $300,000 was committed to statewide decision making and implementation of land and and enable continued protection of irrigation projects supporting Landcare. water resources protection and enhancement. areas from salinity problems. Salinity is currently affecting 260,000ha of Advisory services to local groups and landholders KEY ACHIEVEMENTS Victoria’s irrigated and dryland farmland and is and educational initiatives were undertaken. The Second Generation Landcare Taskforce was threatening the viability of far greater areas. established to review future support for Landcare. A Victorian framework for salinity management NRE provided funding to Catchment Management The Taskforce has also developed a draft Second was developed to guide the review and Authorities (CMAs) to undertake integrated Generation Landcare Action Plan for public implementation of salinity plans. ‘Victoria’s catchment planning, management and restoration consultation. In developing the Action Plan, the Salinity Management Framework’ required a of waterways and to engage and deliver services complexity of the issues facing Landcare and the review of all of Victoria’s salinity management to catchment communities. Funding from the need to ensure that the community is fully plans to ensure they are contemporary in the Commonwealth’s Natural Heritage Trust was engaged with the direction for Second Generation solutions advocated and are integrated to provide also allocated by NRE to CMAs and Landcare Landcare were serious considerations for the multiple catchment benefits. It emphasises groups to undertake works programs to address Taskforce. The community was responsive to the building the capability of regional communities, land degradation, investing in revegetation issues raised in the Taskforce process. There was and setting targets at the end of valleys to cap outside national parks and reserves, and support for an integrated approach to land and the level of salinity within catchments. The plans protecting native vegetation and waterways. water management including native vegetation take account of experience to date, increased retention and revegetation as well as weed and knowledge of the nature and extent of the Regional Weed Action plans were developed rabbit control. Previous sources of community salinity problem, changes in land use and new in conjunction with CMAs that identified priority funding have been consolidated to enhance approaches to land management. In 2000-01, weeds and aimed to reduce their impacts. integrated outcomes. 257 Landcare projects across 29 Salinity Management Plans were reviewed. Extension and advisory services were provided to the State received $3.7 million and $1 million was 103 land and water management plans are now community groups and individual landowners on allocated to groups and individuals to undertake being implemented. the management of priority weeds. Grants were

48 Natural Resources and Environment Annual Report Salinity damage near Bendigo

FINANCIAL AND PERFORMANCE MEASURES RESULTS allocated to community groups for projects that Published addressed land management issues. A major Actual Actual Target Actual Community Land and Water Management 1998-99 1999-00 2000-01 2000-01 focus for the year was to encourage landowner compliance with the Catchment Land and Community based catchment and water management plans - New Plans approved nm nm 29 29 Protection Act, through enhanced enforcement of weed management practices. Community based catchment and water management plans - Total number of Plans being implemented nm nm 103 103 Minimising the impact of rabbits is a key aspect of CMA Regional Management Plans reviewed to achieve sustainable natural resource management. NRE, integrated land and water management 10 10 10 10 in conjunction with Rotary, has implemented a ‘Rabbit Free Accreditation Program’. This program Salinity Management Plans reviewed to achieve integrated land and water management (1) nm nm 100% 55% targets priority locations to create and expand ‘rabbit free’ areas and accredits landowners for Farmers participating in Landcare area farmer groups 49% 55% 55% 55% making their properties ‘rabbit free’. Corporate Plans of Water Authorities and Catchment Management Authorities compliant within guidelines FUTURE DIRECTIONS and submitted to the Minister within agreed time frames nm nm 100% 100%

• Regional Catchment Strategies will be Implementation of high priority actions identified in Regional Catchment Strategies for each developed for 2002-07 following the review of Catchment Management Authority nm 51% 55% 55% existing strategies. Land-holders complying with pest plant and animal • A market based approach to catchment control requirements under the Catchment and Land Protection Act within agreed timeframes in targeted areas nm nm 92% 92% services will be developed and will include the establishment of a new statewide Proportion of State: External investment in exchange for trading water. implementation of land and water management plans nm nm >5:2 4.8:2 • Further implementation of the ‘Water for Guidelines updated for preparation of annual Regional Management Plans nm nm Nov 2000 Nov 2000 Growth’ initiative.

• Effective implementation of the National Price determination for Victorian water industry agreed nm nm Jun 2001 Jun 2001

Action Plan for Salinity and Water Quality. Landcare taskforce report to Minister for continued growth of Landcare movement in Victoria nm nm Dec 2000 Dec 2000 • Develop a Victorian River Health Strategy to contend with streams and waterways in poor Indicative Cost (2) na na $134.7m $118.8m conditions using the Index of Stream 1 Review of Salinity Management Plans will continue in 2001-02 following the completion of revised accreditation guidelines for Condition to provide statewide information the National Action Plan for Salinity and Water Quality.

to assist in developing a strategy. 2 Responsibility for the Stormwater Upgrade Initiative was transferred to Environment Protection Authority during the financial year.

Natural Resources and Environment Annual Report 49 SECTIONOUTPUT GROUP: HEAD CATCHMENT AND WATER

The rights of existing water users are capped to ensure that there are no further increases in total diversions.

Catchment and Water Resource Allocation and Access

OBJECTIVE

Development of resource allocation A framework for including farm dams in the mechanisms and legislation to guide, water allocation system was developed. facilitate and regulate land and water The framework to regulate drinking water managers and users. New and innovative quality across the state was finalised. The market-based measures are examined to single statewide regulatory framework has encourage adoption of sustainable land clear roles and responsibilities that cover and water management systems. three Melbourne water companies, 15 regionally KEY ACHIEVEMENTS based urban water authorities, six alpine resort management boards and Parks Victoria, as well All urban water authorities completed a review of as flexibility to allow for local conditions. their Drought Response Plans during the year and they are now ready to take appropriate FUTURE DIRECTIONS action should dry conditions continue. • Review management arrangements for Bulk water entitlements for Thomson and irrigation and commercial farm dams. Macalister Rivers were finalised. The Bulk • Establish sustainable diversion limits for all entitlement process converts poorly defined priority unregulated streams. access rights of water of existing users to well- defined entitlements that set the basis for a • Accelerate development of stream flow legal, regulated water market. management plans.

50 Natural Resources and Environment Annual Report Top banner: Parwan River, Bacchus Marsh Left: NRE's Nathan Robinson and Keith Reynard tesing soil near Seymour

FINANCIAL AND PERFORMANCE MEASURES RESULTS

Published Catchment and Water Resource Actual Actual Target Actual Allocation and Access 1998-99 1999-00 2000-01 2000-01

Volume of the State’s water resources covered by tradeable Bulk Water Entitlement orders granted by the Minister (megalitres) 4.0m 4.3m 4.5m 4.6m

River Basins for which surface water allocations have been determined nm nm 20 20

Volume of water permanently traded on water markets (megalitres) nm nm 20,000 27,000

New wastewater management improvement projects supported nm nm 29 32

Major policy/legislative frameworks developed (water industry, Snowy River, farm dams and drinking water) nm nm 4 4

Water entitlements and allocations determined within agreed timeframes and in accordance with national competition policy 100% 100% 85% 85%

Bulk water entitlements being complied with to ensure security of supply and environmental flows nm nm 100 100

Stream systems where environmental flow allocations meet agreed objectives nm nm 31 31

Stream systems where environmental flow allocations meet agreed objectives nm nm 42% 42%

Victoria’s population receiving water services with acceptable drinking water standards nm nm 85% 85%

Development of major new policy/regulatory frameworks nm nm Jun 2001 Jun 2001

COAG 3rd tranche assessment for the Victorian water sector completed nm nm Jun 2001 Jun 2001

Indicative Cost (1) na na $21.4m $47.0m

1 Variance is due to an accounting reclassification of expenses from Asset Investment Program and Payments of Behalf of the State to Outputs and the redistribution of costs between catchment and water outputs.

Natural Resources and Environment Annual Report 51 OUTPUT GROUP: ABORIGINAL RECONCILIATION AND RESPECT

The Indigenous Partnership strategy was developed to enhance representation of Aboriginal and Torres Strait Islander land, heritage, economic and cultural development…

Aboriginal Affairs Victoria is responsible for the Aboriginal Reconciliation and Respect Output Group. The Division supports Aboriginal aspirations for land, culture and natural resources, healing the past, building an Aboriginal future through economic, social and community development and improving the relationship between Aboriginal people, the Government and the wider community.

Policy Advice and Development

OBJECTIVE

Improved outcomes for Kooris through the in relation to land and resource management. directly involves the Indigenous community provision of advice and the development of Aboriginal Affairs Victoria (AAV) was engaged in monitoring government outcomes. The ‘whole of government’ policy. in projects such as preparation of advice to the Victorian Aboriginal Affairs Coordination Department of Infrastructure on the review of the Committee was established as the Government’s KEY ACHIEVEMENTS environmental assessment processes associated wtih key inter-departmental body responsible for The Indigenous Partnership strategy was the Environmental Effects Act 1978, and was developing a ‘whole of government’ framework developed to enhance representation of effective in enhancing consideration of Aboriginal for Aboriginal affairs. Aboriginal and Torres Strait Islander land, issues by other Departments and organisations. heritage, economic and cultural development The Premier’s Aboriginal Advisory Council (PAAC) FUTURE DIRECTIONS interests in resource allocation processes. was established to ensure that the partnership Key challenges continue to confront the Victorian A ‘whole of government’ approach to between Government and the Victorian Indigenous community in regard to the Aboriginal cultural heritage is under Aboriginal community communicates the views functioning and resourcing of Indigenous development to assist in the successful of the community at the highest level of organisations at a community and Statewide level. promotion of Aboriginal cultural heritage Government. The PAAC facilitates Indigenous Despite these limitations, Victorian Government and other Indigenous issues, particularly involvement in identifying strategic issues and Departments have made significant progress in

52 Natural Resources and Environment Annual Report Lake Tyers Community

Aboriginal Affairs Victoria assisted the Lake Tyers community in reorganising its internal structure. This has had a major effect on its operation and welfare. Now, the overall responsible management entity, the Lake Tyers Aboriginal Trust, is mainly responsible for ownership and control questions, thus allowing government funding for various services to be directed towards newly established responsible organisations.

Top banner: Kwai Sinclare and Ricci Marks were joint winners of the 2000 Victorian Aboriginal Young Achiever Awards. Kwai is a technical officer with Heritage Services Branch (AAV) and Ricci is a cultural officer with the AAV supported Brambuk Cultural Centre at Halls Gap Top: Reopening of St Johns Anglican Church at Lake Tyers

establishing new forums and linkages between FINANCIAL AND PERFORMANCE MEASURES RESULTS government and the Indigenous community. Work will continue to deliver: Published Actual Actual Target Actual • Effective ‘whole of government’ responses Policy Advice and Development 1998-99 1999-00 2000-01 2000-01 to Indigenous issues and community Draft Victorian Government Reconciliation identified priorities response completed nm nm 1 1

• A comprehensive Victorian Government Annual Aboriginal Affairs report tabled response to the Council for Aboriginal in Parliament (1) nm nm 1 0 Reconciliation’s National Strategies to Victorian Aboriginal cultural heritage strategy advance Reconciliation discussion paper developed (2) nm nm 1 0

• A Victorian Public Service Indigenous Maximum percentage of submissions, Employment Strategy reviews and/or briefs returned for clarification nm nm 5% 0%

• An Indigenous Taskforce on Family Violence Ministerial correspondence, briefs, speeches, press releases, Parliamentary briefs • A strategy to drive capacity building and and questions accepted by Minister 95% 95% 95% 100% leadership development in the Indigenous Maximum proportion of briefs returned community organisation sector and assist for clarification nm nm 5% 0% with the financial and organisational skill Proportion of advice to government provided deficits experienced in many Indigenous within requested timeframes nm nm 95% 95% community organisations Briefs completed within agreed time frames 95% 95% 95% 99% • Further initiatives that respond to the needs of the Stolen Generation Indicative Cost na na $1.9m $1.7m

• A program of consultation with Aboriginal 1 Development of the Annual Aboriginal Affairs report is proceeding in parallel with the development of the ‘whole of government’ policy framework. The report and policy framework are expected to be completed in December 2001. community organisations to progress 2 Increased consultation is being undertaken with Aboriginal communities. development of a Victorian Aboriginal cultural heritage strategy for the public sector.

Natural Resources and Environment Annual Report 53 OUTPUT GROUP: ABORIGINAL RECONCILIATION AND RESPECT

Administration of Legislation

OBJECTIVE FUTURE DIRECTIONS

Compliance with and improvement of Aboriginal Framlingham Aboriginal Trust in reviewing ad- • Development of new Victorian Aboriginal cultural heritage and land legislation. ministration of the Aboriginal Lands Act 1970. cultural heritage legislation continues to be complicated by delays in the finalisation of KEY ACHIEVEMENTS Consultation undertaken with Aboriginal community members indicated preferred directions Commonwealth legislation. Nearly 500 newly identified Aboriginal cultural for development of new Victorian Aboriginal • A statewide meeting of Aboriginal heritage places were recorded and registered. cultural heritage legislation. community representatives will be facilitated As well, approximately 3500 previously registered Issues that might otherwise have resulted in to assist in developing concepts for review or site records were checked and verified. emergency declarations or prosecutions for offences amendment of cultural heritage legislation. AAV worked with community members of the were successfully negotiated and no such declarations • A training program will be delivered leading Lake Tyers Aboriginal Trust and the or prosecutions occurred during the year. to appointment of additional cultural heritage inspectors to promote effective administration and enforcement of the legislation.

• Information materials will be developed and FINANCIAL AND PERFORMANCE MEASURES RESULTS disseminated to promote awareness of Aboriginal cultural heritage and legislation. Published Actual Actual Target Actual • Strategies will be developed and implemented Administration of Legislation 1998-99 1999-00 2000-01 2000-01 to facilitate repatriation of cultural heritage Excavation permits issued nm nm 20 28 materials, including human remains, to Aboriginal communities. Sites/places added to Victorian Aboriginal Site Register (1) nm nm 650 485 • The Aboriginal Lands Act 1970 is 30 Proportion of archaeological surveys conducted in accordance with requirements nm nm 95% 99.5% years old in July 2001. AAV has been examining the adequacy of the Act and this Proportion of referrals, permits processed will form the basis of a review of the Act within agreed timeframes nm nm 95% 100% during the first quarter of next financial year. Indicative Cost (2) na na $1.6m $0.4m

1 The adding of sites/places to the Victorian Aboriginal Site Register is largely dependent on pre-development heritage surveys conducted by the private sector and academic research.

2 Reflects a reclassification of expenses between AAV outputs.

54 Natural Resources and Environment Annual Report Provision of Services

OBJECTIVE

Improved capacity of Aboriginal communities and Major cultural heritage management planning their organisations and improved management and works projects implemented with Aboriginal and protection of Victoria’s Aboriginal heritage. community endorsement included Bumbang Island (Robinvale), Mt Pilot 2 Aboriginal art site KEY ACHIEVEMENTS (Beechworth), Lake Boort conservation The provision and/or upgrade and redevelopment assessment, Tyrendarra area, Lake Tyers Church of Aboriginal community infrastructure including restoration, Mudgegonga Aboriginal art site the Budja Budja Aboriginal Co-operative conservation, improved fencing at Carisbrook administrative centre in Halls Gap, the Fitzroy stone arrangement and viewing facilities at Lake Stars Aboriginal Community Youth Club Bolac stone arrangement. Gymnasium, the Mildura Aboriginal A highly successful cultural heritage awareness Corporation’s administrative office and the event at Laharum with Goolum Goolum Mungabareena Aboriginal Corporation in Aboriginal community, Landcare and local Wodonga were undertaken. farmers was facilitated by NRE.

Nineteen Koori Community Fund grants totalling Marn Grook historic football exhibition toured to $500,000 were approved for projects ranging from all Christian Brother Schools throughout Victoria web site development to youth and community and was viewed by over 10,000 students and development programs. members of the community.

FINANCIAL AND PERFORMANCE MEASURES RESULTS FUTURE DIRECTIONS

• Develop a more effective process for Published Actual Actual Target Actual the allocation of grants from the Koori Provision of Services 1998-99 1999-00 2000-01 2000-01 Community Fund to Aboriginal community organisations for priority projects. Community Infrastructure: feasibility studies nm nm 8 7 • Initiate a more interactive process to Community Infrastructure: major projects nm nm 4 4 encourage Aboriginal community Cultural heritage: major works/management plans nm nm 8 11 organisations to seek Koori Community Fund grants for priority community projects. Regional cultural heritage: organisations supported nm nm 5 5 • Continue support for development Koori Business Network: meetings/events (1) nm nm 20 na of the Regional Aboriginal Cultural Koori Community Fund grants approved (2) nm nm 10 19 Heritage Program.

Cyclical building maintenance: proportion • Complete the development of the Victorian of high priority work completed nm nm 100% 100% Aboriginal Heritage Information System as

Cultural heritage: proportion of major basis for range of improved heritage works/management plans endorsed by community nm nm 100% 100% information services.

Community Infrastructure: proportion of feasibility • Improve protocols established between AAV, studies completed in agreed timeframe nm nm 75% 100% Aboriginal communities, Victoria Police and Cultural heritage: major works/management plans- the Coroner’s Office in relation to treatment proportion of projects completed in agreed timeframe nm nm 75% 75% of reported Aboriginal remains. Indicative Cost na na $6.1m $6.5m

1 The Koori Business Network was transferred to the Department of State & Regional Development during the year.

2 Estimate was based on ten grants of $50,000. 19 grants were approved for smaller amounts.

Natural Resources and Environment Annual Report 55 OUTPUT GROUP: ENERGY AND GREENHOUSE POLICY

This Output Group was created during 2000-01 following the transfer of responsibilities for Energy Policy from the Department of Treasury and Finance to NRE. While information for this Group was not required to be published in the 2000-01 Budget Papers, in the interest of annual reporting transparency, it is included for information.

Energy Industry Reform Policy Advice

OBJECTIVE FUTURE DIRECTIONS

To ensure reliable and secure energy services at A review of gas industry communication and • Provide greater certainty to customers affordable prices. restriction arrangements also commenced during in relation to security of supply of gas the year and is expected to be completed by and electricity. KEY ACHIEVEMENTS December 2001. • To maintain and review safety-net of In February, a Security of Supply Taskforce was Legal and Regulatory frameworks were protections for electricity and gas customers. established to examine security of supply options established to support retail competition in the • Provide for the evolution of trading for the future. In September 2000, the Taskforce electricity and gas industries for domestic and arrangements so that retailers can compete reported a number of recommendations designed small business customers. The framework is for customers in electricity and gas. to increase the security of Victoria’s energy designed to support competition and protect small • Settle national electricity and gas market supply. Implementation of actions included energy customers during the transition to, and arrangements to deliver certainty and reviewing national electricity market after, the introduction of customer choice. The incentives to energy investors. arrangements, working to remove barriers to new introduction of choice will enable Victorian investment in electricity generation and customers to shop around for the energy price • Develop strategies and policies to ensure interconnection and encouraging ‘demand-side’ and service mix that best suits their needs while hat energy markets develop in an effective participation in the national electricity market. enjoying the protection of minimum terms and and efficient way, and that minimal barriers exist to active participation in demand side In March 2001, Victoria and NSW invited the conditions of supply. activities or renewable and other alternative other National Electricity Market (NEM) Agreement was reached with the electricity sources of supply. Governments to join in the establishment of a industry and other jurisdictions on the nature and • Maintain coordinated emergency NEM Ministers Forum to oversee the functionality of national systems to facilitate the management procedures. development of policy for the NEM. The Forum transfer of customers between competing will provide an efficient basis for resolving retailers. This will ensure that customers choosing • Develop national energy forums to address matters of policy, and remove associated a new electricity retailer will be able to transfer market policy and governance issues. uncertainty in the market, in order to provide a from their current retailer as cost-effectively and • To ensure consistency between energy secure basis for the efficient operation of the smoothly as possible across Victoria, and and greenhouse policy. NEM, competitive power prices and for long term eventually the entire national electricity market. investment in the electricity industry. As part of the phased introduction of customer FINANCIAL AND PERFORMANCE A major review of existing arrangements to choice, new tranches of small business customers MEASURES RESULTS manage electricity supply restrictions and were able to exercise choice of retailer during $5.4 million was transferred from DTF communications between Government, the the year. Victorian gas customers consuming as well as a one-off carry-over of $4.9 electricity industry and the community during an above 10 TJ per annum were eligible to choose million. As this was not listed as a separate electricity supply shortage was undertaken. their gas retailer from 1 September 2000 and output in the 2000-01 Budget Papers, This has led to the implementation of new electricity customers consuming above 40 MWh there are no performance data available arrangements that will facilitate a coordinated could choose their electricity retailer from 1 in the published format. response to any future major supply shortfalls. January 2001.

56 Natural Resources and Environment Annual Report Construction and completion of turbines at the Codrington wind farm (Photo Australian Wind Energy Association) Greenhouse Policy Development

OBJECTIVE FUTURE DIRECTIONS

To develop a comprehensive Victorian comprehensive strategy to minimise greenhouse • Manage and coordinate the implementation Greenhouse Strategy. gas emissions. of the Victorian Greenhouse Strategy across a range of government agencies. KEY ACHIEVEMENTS A $680,000 funding commitment was announced for the Cooperative Research Centre for Clean • Evolve Victoria’s greenhouse response in step Substantial progress was made towards the Power from Lignite. The funds will be used to with national and international developments development of a Victorian Greenhouse Strategy accelerate the development of a demonstration in climate change politics. (VGS) including a comprehensive public plant that extracts moisture from coal before it is • In response to CSIRO research findings, consultation process that commenced with release burnt, with potential for a 15% reduction in develop strategies for Victoria to adapt to the of the VGS Discussion Paper in August 2000 and greenhouse gas emissions and an 18% increase adverse impacts of climate change. production of a summary report. in efficiency. As well, a $450,000 research project Explicit and separate property rights for carbon was commenced with CSIRO to investigate FINANCIAL AND PERFORMANCE Victorian impacts of climate change over a sequestered by trees were created by the MEASURES RESULTS three year period. successful passage of the Forestry Rights This output was not listed as a separate (Amendment) Act through Parliament. The Greenhouse Unit coordinated and provided output in the 2000-01 Budget Papers therefore The over riding purpose of the legislation Victorian Government input to the development no performance data are available in the is to encourage investment in carbon of the 1999 National Greenhouse Gas Inventory. published format. sink establishment in Victoria, as part The Greenhouse website was launched and can be of the Government’s found at www.greenhouse.vic.gov.au

Natural Resources and Environment Annual Report 57 CORPORATE GOVERNANCE

The Department of Natural OUR COMMITMENT EXECUTIVE ROLE Resources and Environment A key driver for our success is the ability to align Executive Directors report directly to the our objectives and service delivery activities Secretary and are responsible for organisation- has structures and processes across the organisation, with the needs and wide programs. The Secretary, Deputy Secretary in place to ensure that we are expectations of our stakeholders and the Operations and Deputy Secretary Policy, effective in meeting our policy community. Our commitment to sound corporate Executive Directors, Regional Managers, and governance is reflected in the following corporate Director, Agriculture Victoria operate as the objectives, efficient in our policy and principles. departmental Executive Management Team. operations, accountable for STATEMENT OF POLICY NRE’s Executive Management Team has our decisions and compliant accountability for maintaining strategic direction NRE is committed to maintaining a and organisational effectiveness. In order to with acts and regulations. comprehensive and effective framework of achieve these key objectives, a process of corporate governance structures and processes continuous governance improvement has led to Our corporate governance across all NRE business management activities. significant refinements to the manner and focus of The following eight key principles underpin this framework enables us the Executive function as well as the configuration policy commitment. of the Department’s committee structure. to provide the Victorian • Service to the Victorian community The Executive Directors participate with Government and the that achieves policy objectives and the Secretary in quarterly reviews of their meets expectations community with assurance respective divisions and individual performance • Relationships that are based on trust and is assessed annually. that we are fulfilling our effective leadership ETHICS responsibilities, and meeting • Conduct that is ethical and consistent with community expectations corporate values and community standards All NRE employees are required to act with the • Innovation, learning and success utmost integrity and objectivity at all times in all with due diligence and dealings. The Department annually requires key • Internal policies, procedures and protocols staff to complete a delaration that allows any accountability. NRE covers that are communicated and implemented potential conflicts of interest to be identified and the departmental • Due diligence in relation to acts, regulations managed appropriately. and codes of practice responsibilities of the It is certified that all executives and relevant • Managing risks and maximising opportunities Ministers for Environment employees of the Department of Natural Resources • Responsibility and accountability in and Environment have completed a declaration of and Conservation, Agriculture decision making. pecuniary interests during the year 2000-01. and Aboriginal Affairs, and This policy provides all management with INDEPENDENT ADVICE Energy and Resources. assurance that business objectives are being achieved and that the conduct of the organisation In pursuit of their duties, Executive officers, is not exposing the community and stakeholders senior officers and principal scientists may seek to unacceptable risk. independent advice from a range of sources.

58 Natural Resources and Environment Annual Report Minister for Minister for Minister for Energy and Environment and Agriculture, Minister Resources Conservation for Aboriginal Affairs

Secretary

Executive

Human Resources Finance & Planning Gene Technology Audit Standing Standing Committee Standing Committee Standing Committee Committee

Corporate Committees Structure

RISK MANAGEMENT

NRE has developed a comprehensive and to responsibilities for financial reporting, Human Resources Standing Committee systematic methodology for the management of its maintaining systems of internal control and risk The Committee’s role is to consider the current risks based on the Australian/NZ Standard for Risk management, monitoring organisational and future needs of the Department and its staff Management AS/NZS4360. The risk management performance, and fostering the Department’s with respect to human resource management, and process has been structured over three phases; ethical environment. The Committee reports to the to provide leadership in activities related to the framework, implementation and sustainability. Secretary on a regular basis on progress, issues recruitment, retention and development of the and activities and meets on a monthly basis. NRE workforce. The Committee meets bi- During the implementation phase, NRE identified a monthly and reports to the Secretary and number of risks that require the completion of Membership Executive Management Team. formalised risk management treatment plans. These • Michonne Van Rees (Chair), plans are used to manage risk and are incorporated Membership Executive Director, Parks, into the NRE business planning process. • Chloe Munro (Chair), Secretary Flora and Fauna • Richard Rawson, NRE is now in the process of developing the • Richard Rawson (Deputy Chair), Deputy Secretary, Operations systems and processes required to support risk Deputy Secretary, Operations management sustainability and continuous • Richard McLoughlin, improvement practices. • Gerard O’Neill, Executive Director, Fisheries Executive Director, Forests Service • David Lea, Executive Director, MAJOR COMMITTEES • Rod Gowans, Director, Parks, Minerals and Petroleum The Department’s Standing Committees are a key Flora and Fauna • Tony Cahir, Executive Director, element of our governance arrangements. They Aboriginal Affairs Victoria • Kevin Ritchie, Regional Manager, provide assurance to the Secretary and develop North East • Clive Noble, Director, policy for consideration by the Executive Agriculture Victoria Management Team. • Catherine Hollywell, Manager, Chemical Standards, Agriculture • Jan Boynton, Regional Manager, North West Audit Standing Committee • Peter Lewinsky (Independent) The Audit Standing Committee is an independent • Chris Halpin, Regional Manager, • Maggie Baron (Independent) committee established in accordance with the Northern Irrigation Financial Management Act 1994. Its role is to • Ex officio: Ian White, Manager, • Ex officio: Judith Pettitt, Director, assist the Secretary and the Ministers with respect Internal Audit and Governance Human Resources

Natural Resources and Environment Annual Report 59 CORPORATE GOVERNANCE

Finance and Planning Gene Technology Standing Committee Standing Committee The Committee’s role is to provide assurance to The Committee’s role is to examine in detail the Secretary and the Executive Management financial management issues encompassing Team on the development of appropriate policies planning, budgeting and accounting and to and procedures within NRE for gene technology provide leadership, direction and research and its application. The Committee recommendations to the Department. The meets monthly and reports to the Secretary and Committee meets monthly and reports to the Executive Management Team. Secretary and Executive Management Team. Membership Membership • Terry Healy (Chair), Deputy Secretary, Policy

• Chloe Munro (Chair), Secretary • Bruce Kefford, Executive Director, Agriculture

• Richard Rawson, Deputy Secretary, Operations • Gerard O’Neill, Executive Director, • Terry Healy, Deputy Secretary, Policy Forests Service

• Peter Sutherland, Executive Director, • Michonne van Rees, Executive Director, Catchment and Water Parks, Flora and Fauna Executive Director Executive Director • Geoff Vincent, Executive Director, • Clive Noble, Director, Agriculture Victoria Regional Services Energy Policy

Regional Services • Judy Backhouse, Regional Manager, • Elizabeth O’Keeffe, Executive Director, Port Phillip Mgr Community Manager Regulation Relations Team Land Victoria • Kerrie Alush, Director, Corporate • Gillian Miles, Regional Manager, Communication and Information Director Social Manager Market Capability Development South West • Jane O’Connor, Director, Media • Tony Edgar, Regional Manager, Gippsland Regional Manager Manager Market • Ian White, Manager, Internal Audit Northern Irrigation Operations • Ex officio: Alan Young, and Governance Policy Chief Finance Officer, Regional Manager • Dennis Monahan, North East Stephen Mather, Director of Planning, Environment Protection Authority Chris Corrigan, Manager, Regional Manager • Ex officio: Wil Blackburn, Gippsland Corporate Strategy

Regional Manager North West

Regional Manager South West

Regional Manager Port Phillip

Organisation Structure

60 Natural Resources and Environment Annual Report ORGANISATION STRUCTURE

Minister for Minister for Minister for Energy and Environment and Agriculture, Minister Resources Conservation for Aboriginal Affairs Statutory Authorities Statutory Authorities

Secretary Chief Scientists Audit

Mgr Internal Audit & Risk Mgt Policy Deputy Secretary Deputy Secretary Chief General Manager Mgr Greenhouse Director Operations Policy Finance Officer Corporate Services Policy Media

Dir Corporate Director General Manager Mgr Policy Manager Communic. & Info. Human Resources Forestry Victoria Co-ordination Executive Services

Director Business Management

Executive Director Executive Director Executive Director Executive Director Executive Director Executive Director Executive Director Executive Director Aboriginal Minerals & Petroleum Fisheries Agriculture Parks, Flora & Fauna Forests Service Land Victoria Catchment & Water Affairs Victoria

Mgr Min. & Petr. Deputy Director Director Business Mgr Business Chief Director Mgr Business Director Regulation Fisheries Support Management Fire Officer LV Corporate Improvement Portfolio Services

Mgr Petroleum Director Director Dir. Biodiversity Director Forest Director Director Water Director Development MAFRI Agriculture Victoria research Science Centre Land Registry Sector Services Heritage Services

Manager Mgr Commercial Director Mgr Flora & Fauna Manager Forest Director Crown Director Water Director Planning Geological Survey Fishing & Licensing Science Quality Statewide Programs Management Land Management Resources Mgt and Development

Manager Mgr Recreational Director Dir National Parks Manager Director Land Director Business Planning Fisheries Industry Policy Flora & Fauna Forest Policy Information Group Land Management

Mgr Min. & Petr. Manager Dir. Agribusiness & Manager Manager Director Property Manager Policy Aquaculture Trade Development Coasts FISAP Project Online Strategy Policy Integration

Mgr Information Dir. Agriculture Mgr Alpine Resorts Manger Dir Catchment & Development Industries & Recr’n & Tourism Business Support Community Strategy

Director Agric Director Manager Snowy Quality Assurance Program Strategy River Project

Chief Economist

Natural Resources and Environment Annual Report 61 OUR LEADERSHIP TEAM

from left to right: Chloe Munro, Richard Rawson, Terry Healy, Mr Tony Cahir, Bruce Kefford, Peter Sutherland

Department Secretary Deputy Secretary, Policy Agriculture Chloe Munro Terry Healy Bruce Kefford MBA, MA (Hons) B.A (Hons) Dip.Ed, Appointed 1996 B.Sc (Hons), PhD,

Appointed 2000 Responsible for leading and coordinating Graduate Management Qualification Responsible for a portfolio that integrated policy outcomes for the Department (AGSM) Appointed 1997 encompasses minerals, petroleum, and its Ministers. Facilitates whole of Responsible for NRE agriculture and forests, fisheries, land, agriculture, Department policy outcomes, development of the services it delivers to improve market catchment and water, energy policy, new policy and legislative proposals; leads the access, consumer confidence in Victoria’s parks, forestry, and Aboriginal affairs, development and implementation of a food and agriculture products and the with a controlled operating budget strategic, whole of Government greenhouse sustainability and productivity of production of around $923 million as well as response and ensures the Ministers, Secretary systems. The services required are identified $2.1 million of capital assets. and Executive are provided with policy advice through consultation with community, on key issues. Monitors implementation of Deputy Secretary, Operations farm and industry groups and are delivered policy and whole of Government policies through projects that utilise NRE’s research Richard Rawson across NRE. Also responsible for a range of and development, quality assurance, B.Sc, Dip.For executive services including the management policy development, agribusiness and Appointed 1998 of ministerial correspondence, support for extension capabilities. legislation programs and Cabinet processes, Responsible for providing the corporate legal advice, responses to Parliamentary Catchment and Water policy framework for NRE as well as questions asked of Ministers and services that directly support Peter Sutherland appointments to statutory authorities. departmental objectives. The Deputy B.Sc (Hons), B.A Secretary has a major focus on ensuring Executive Directors Appointed 1996 that NRE maintains high quality Responsible for Catchment and Water corporate governance arrangements. Aboriginal Affairs Victoria Program, which includes building statewide Tony Cahir The Deputy Secretary leads the frameworks, capabilities and relationships to organisation in achieving best practice B.Ec, Appointed 1997 ensure healthy land, water and communities. and the delivery of high quality services Responsible for the development, coordination Oversees the operation of nine Catchment in the areas of human resource and monitoring of Victorian Government Management Authorities, the Port Phillip management, strategic budget and policies, programs and services relating to and Westernport Catchment and Land business planning, information Aboriginal people including specialist services Protection Board and 25 Water Authorities. technology, financial systems, corporate in Aboriginal cultural heritage and community The role involves strategic policy advice, administration, communications, infrastructure development and improving the program development, regulation and customer strategies and the provision relationship between Aboriginal peoples, the performance monitoring. of information services. Government and the wider community.

62 Natural Resources and Environment Annual Report from left to right: Michonne van Rees, Peter Clements, Richard McLoughlin, Gerard O’Neill, Elizabeth O’Keeffe, David Lea and Geoff Vincent

Parks, Flora and Fauna Fisheries Land Victoria Michonne van Rees Richard McLoughlin Elizabeth O’Keeffe B.A, MA, Dip.Ed., B.Sc (Hons), M.Sc , Appointed 1997 LL.B, Appointed 1996

Grad.Dip.Bus.Man., Responsible for ensuring efficient delivery Responsible for land titles, valuation, survey, Grad.Dip.Govt.Law of Fisheries Program services utilising a mapping and Crown land management policies Appointed 1998 team approach. The Program plays a major and services. In addition, the role is responsible role in the sustainable development of for developing Property Online, the Internet- Responsible for ensuring that the commercial harvesting of fish, aquaculture based delivery of comprehensive land conservation and recreational values production and recreational fishing in information and transactions to the Victorian of Victoria’s resources on land and marine waters, bays and inlets and inland property industry and the community. in marine and freshwater are maintained waters. This role is delivered through and enhanced for the benefit of current Minerals and Petroleum Victoria education, regulation and enforcement, and future generations. Oversees the and support for management of aquatic David Lea management of part of the State’s public habitats that support fish stocks. Dip.Mech.Eng, Appointed 1996 land to achieve community needs including conservation, recreation, Forests Service Responsible for implementing the Government’s Minerals and Petroleum education and research objectives. Gerard O’Neill Policy and for delivering services reg- B.App Sc. Natural Resource Mgt Energy Policy ulating and promoting the exploration Peter Clements (Acting) Appointed 1998 and development of Victoria’s extractive, B.Ec (Hons), Dip.Ed Responsible for the development and mineral and petroleum resources. Appointed May 2001 implementation of sustainable forest Regional Services management policies and practices in Responsible for oversight of all Geoff Vincent, Dip.Ag.Sci. State forests and facilitation of aspects programs delivered by the Division, On secondment from Parks Victoria, which include the introduction of full of plantation development on private October 2000 retail competition in electricity and gas, land. Also responsible for ensuring and security and reliability of Victoria’s effective and efficient fire management Responsible for coordinating operations and electricity and gas supplies. services on public land as well as providing leadership, including line Management of relationships with ensuring services are delivered in close management, across the Department’s six industry stakeholders and the cooperation with Parks Victoria and the regions and for ensuring the delivery of high executive corporate responsibilities Country Fire Authority remain a key quality services to Victoria’s rural and within the Division. accountability of the role. regional communities and industries.

Natural Resources and Environment Annual Report 63 OUR LEADERSHIP TEAM (CONTINUED)

The following positions report directly to the Secretary, Deputy Secretaries or Executive Directors.

Aborginal Affairs Victoria Aquaculture Executive Officer Heritage Services Branch Manager, Anthony Forster, Dip.App.Sc Ian Nisbet, B.Ag.Sci., Dip.Ed Director, Joy Elley, Dip.Ed., B.A, PhD Forests Service Regional Services Planning and Development Branch Forest Management Northern Irrigation Director, Karen Milward, Cert Office and Bus.Admin Director, Ian Miles, B.Sc.(Hons), M.Sc, Dip.Ed Regional Manager, Chris Halpin, B.Ag.Sci., Grad.Cert.Sys.Ag Portfolio Services Branch Fire Management South West Director, David Clark, B.A (Hons) Chief Fire Officer, Gary Morgan, B.For.Sc Regional Manager, Gillian Miles, B.Ed, M.Litt Agriculture Forests Science Centre North West Agriculture Industries Director, Professor Mark Adams, B.Sc. (Hons), PhD Regional Manager, Jan Boynton, B.T.R.P., Dip.CD Director, Martin Barlass, B.Sc.(Hons), M.Sc., Ph.D Forest Policy Port Phillip Agriculture Quality Assurance Manager, Sharon MacDonnell, B.A (Hons), M.Env.Sci Regional Manager, Judy Backhouse, M.Ag.Sci Director, Peter Bailey, B.Ag.Sc., M.Ag.Sc. Forest Industry Structural North East Agriculture Victoria Adjustment Programs Regional Manager, Kevin Ritchie, B.For.Sc. (Hons) Director, Clive Noble, B.Ag.Sc (Hons), PhD Manager, Duncan Pendrigh, B.For.Sc, MBA Gippsland Business Support Business Service Regional Manager, Tony Edgar, Dip.For., B.For.Sc Director, Catherine Willis, B.Com., Grad.Dip Manager, Sally Layton, B.Ec Community Relations Marketing, MBA Land Victoria Team Manager, John Johnson, B.Sc Social Capacity Agribusiness and Trade Development Land Victoria Corporate Director, Jan Mahoney, B.A, PhD, Grad.Dip.Bus., Director, John Naughtin, B.Ag.Sc., M.Ag.Sc Director, Fiona Delahunt, B.A F.A.I.C.D Industry Policy (Agriculture) Property Online Strategy Director, Terry Truscott, B.Rural Sci. (Hons), M.Ag.Sc., PhD General Manager, Allan Stewart, B.A (Hons), B.S.W Forestry Victoria Science Quality Land Registry General Manager, Peter Rutherford, B.For.Sc Director, George Riffkin, PhD, B.V.Sc., MRCVS Director, John Hartigan, B.Eng.(Hons), Corporate Management Chief Economist Grad.Dip.Public Admin. Gary Stoneham, B.Bus., M.Ag.Sc Chief Finance Officer Land Information Group Alan Young, B.Bus, MBA, ASA Director, Steve Jacoby, B.App.Sc.M.Surv.Sc Catchment and Water Corporate Services Water Resources Management Crown Land Management General Manager, Allan Stewart, Director, Campbell Fitzpatrick, Norma Marshall, B.A. (Hons), M.A, PhD B.A (Hons), B.S.W M.Env.Studies, B.Ag.Sc Minerals and Petroleum Corporate Communication and Information Catchment and Community Strategies Petroleum Development Unit Director, Kerrie Alush, B.A (Hons), B.S.W Director, Janine Haddow, M.Env.Planning; B.A, Manager, Kathy Hill, B.Sc., M.Sc Human Resources Dip.Ed., Cert Marketing Minerals and Petroleum Regulation Director, Judith Pettitt, B.Ec., Dip.Ed Land Management Manager, Robert King, B.Sc.,M.Env.Studies, Dip.Ed Business Management Director, Chris McRae, B.Ag.Sc. (Hons), Dip.Ag.Sc., Policy Branch Director, Andrew Widdicombe (Acting ), B.A., Cert Bus Mgt Manager, John Lambert, Dip.Mech.Eng., M.Env.Studies Grad.Dip.Urban Planning Water Sector Services Geological Survey of Victoria Director, Adrian Spall, MBA, B.A (Hons) Portfolio Management Manager, Philip Roberts, B.Sc.(Hons), MBA Policy Integration Policy Coordination Business Planning Manager, Caroline Douglass, B.Natural Resources, Manager, Scott Ashby, B.A (Hon), Dip.Soc.Sc, Dip.Bus.Admin Manager, David Wallish, B.A, Grad.Dip.Bus.Admin., Grad.Dip.Natural Resources Law Executive Services M.Env.Studies Business Improvement Manager, Jim Taylor, Dip.Hort.Sc. (Hons), Information Development Manager, Christiana Kalu, MBA, B.A B.Ag.Sc (Hons), Grad.Dip.Bus Manager, Andrew Wilson, B.For.Sc., M.For.Sc. Media Energy Policy Parks, Flora and Fauna Director, Jane O’Connor Market Operations Parks, Flora and Fauna Greenhouse Policy Manager, Peter Clements, B.Ec. (Hons), Dip.Ed Director, Rodney Gowans, B.Sc., Dip.App.Sci Manager, Ian Porter, B.Sc. (Hons) Market Development Program Strategy Manager, Peter Naughton, B.A, B.Ec Internal Audit Director, John Burley, B.Sc. (Hons), M.Public Admin., Dip.Ed Regulation Internal Audit and Governance Flora and Fauna Statewide Programs Manager, Sandra Denis, M.Ec, LLB Manager, Ian White Manager, Robert Begg, B.Sc. (Hons), PhD, Grad.Dip.Ed Fisheries Biodiversity Research Chief Scientists Fisheries Director, Timothy Clancy, B.Sc. (Hons), PhD Sir Gustav Nossal AC Kt CBE MB BS Deputy Director, Paul Mainey, B.Sc Resorts, Recreation and Tourism BSC(Med)(Syd) PhD(Melb) FRCP FRACP Marine and Freshwater Research Institute Manager, Stuart Bowe, B.For.Sc FRCPA FRCPath FRSE FTSE FAA FRS Director, David Smith, B.Sc.(Hons), PhD Coasts Professor David Pennington AC MA Commercial Fishing and Licencing Manager, Alison Stone, B.Ec., M.Env.Studies DM BCh FRCP FRACP FRCPA Manager, Steve McCormack, Business Management Branch Doctor John Stocker MB BS BMedSc PhD FRACP FTSE Recreational Fisheries Manager, Daniel McDiarmid, B.A, Grad.Dip Doctor Graham Mitchell AO RDA BVSc Manager, Ross Winstanley, B.Sci Health Services Mgt FACVSc PhD FTSE FAA

64 Natural Resources and Environment Annual Report OUR PEOPLE

The Department is a significant WORKFORCE 5000 TREND 4471 employer throughout Victoria. 4316 Workforce trend 4000 NRE is committed to being a (including gender) June 1998 to 3000 place where people want to work June 2001. Numbers 2886 2839 reflect headcount 2000 and an employer able to attract (not FTE) 1430 1632 * Excludes staff 1000 and retain the right people. on leave without pay 0 June 1998 June 1999 June 2000 June 2001 As at the 30 June 2001 NRE employed 4,471 staff who work from 180 locations across the State. Staff numbers Male Female NRE’s Workforce Strategy ensures that staff:

• have the skills to enable the effective Partnership Agreement was introduced in • Implementing and communicating the NRE and efficient delivery of services to the October 2000. Workforce Strategy that focuses on key Victorian community workforce directions. The Department also established consultative • are provided with appropriate personal, prof- committees with both the Community and Public • Further developing NRE’s leadership and essional and career development opportunities Sector Union (CPSU) and Australian Workers’ management capabilities. • are suitably trained, motivated and managed Union (AWU) to better facilitate communications • Implementing the annual OH&S Plan that to ensure NRE can remain responsive to with staff and their representatives. will introduce a six step process focusing on future challenges. The engagement of contractors and agency workplace inspections and audits of work ‘NRE – CREATING A GREAT personnel was reviewed to identify roles systems, procedures, and practices. PLACE TO WORK’ that could be undertaken by direct NRE WORKFORCE TRENDS employment. At the time of reporting 87 The Department has developed a number of people have been employed in such roles Work force numbers increased during the last initiatives and programs, such as leadership and and the process is continuing. four years due to the implementation of a number mentoring, to position NRE as an ‘Employer of of State Government initiatives including: Choice’. The area of Managing Work/Life FUTURE DIRECTIONS Balance demonstrates NRE is on the right track • Growing Victorian Forests Program that and we are committed to further developing • Implementing the Victorian Public Sector Pay provided initiatives designed to significantly initiatives over the course of the next year. and Classification review that, amongst other improve the productivity of the State forests matters, will form the basis of the salary and and increase the knowledge of forest resources. MAJOR ACHIEVEMENTS performance management in the future. • Naturally Victorian Initiative Program that A six-monthly NRE Leadership Forum was • Developing strategies to manage an ageing enhanced the marketing of Victoria’s introduced with 200 senior officers participating. workforce over the next decade to retain the agricultural produce and the promotion of The forum was supported by leadership knowledge and expertise critical to future Victoria’s ‘clean and green’ advantage. service delivery needs. publications and local workshops. The Frontline • Science, Technology and Innovation initiative Management Initiative Program was expanded • Recruiting and retaining quality staff with that was developed specifically for knowledge specialist skills will be an ongoing challenge. throughout NRE with 285 staff participating. creation in food and agriculture. The initiative’s Continuing to develop NRE as an Employer 89 young Victorians in the State Government’s aim was to develop new technologies that will of Choice will help address this. Youth Employment Scheme were placed in NRE significantly improve the sustainability and and portfolio agencies. • Improving understanding by managers and productivity of agricultural systems, and Two women’s forums were conducted and a staff of the importance of their responsibilities develop systems and technologies that increase women’s mentor program and database were in regard to their people and especially in access to markets of food and agriculture established to provide formal opportunities for providing a safe workplace. products. This resulted in NRE employing women to access more senior women as mentors • Further developing strategies to address gender additional scientists and technical staff, within NRE. The Victorian Public Sector (VPS) balance at senior management levels in NRE. primarily in regional Victoria.

Natural Resources and Environment Annual Report 65 OUR PEOPLE (CONTINUED)

WORKFORCE TRENDS (CONT) WORKFORCE LOCALITY LEADERSHIP AND MANAGEMENT

Machinery of Government changes increased The Department is committed to maintaining a NRE encourages its staff to develop qualities that workforce numbers through: strong presence in regional and rural Victoria. relate to leadership behaviours categorised to: As at June 200l, slightly over 52% of the • 50 ex-Victorian Institute of Marine • defining directions Department’s workforce was located in rural and Science staff being transferred to NRE • building commitment regional Victoria. in January 1999 • delivering results.

• 65 staff from Aboriginal Affairs Victoria DEVELOPMENT AND TRAINING A Leadership Program with 200 managers and Energy Policy being transferred from initially selected to form the NRE Leadership NRE’s Corporate Training Schedule offered the Departments of Human Services and Group was developed and introduced. an extensive range of 46 different training Treasury and Finance. and personal and professional development The Frontline Management Initiative Program, NRE’s female staffing numbers have risen programs with over 1,000 staff participating. designed to improve the skills of middle by 14% (202 staff) since June 1998. Further programs were organised at the local managers and supervisors, enrolled 285 A significant proportion of this growth workplace. These programs were facilitated participants. This accredited program was is reflected in the VPS 3 and 4 classification by external providers, eg: computer skills introduced across 14 NRE sites with 16 Wimmera groups providing increased promotional training, and supplemented by a range of staff graduating from the first pilot course. opportunities for women as part of the innovative programs such as work placement ‘Women in NRE’ strategy. rotations, mentoring and shadowing schemes, INDUSTRIAL RELATIONS WORKFORCE BY CLASSIFICATION study leave and encouragement to be a lifelong learner. NRE has worked diligently to support the partnership approach adopted by the Employee category June 2000 June 2001 Fire Management provided a range of training for Government and embedded in the current Field staff 289 291 NRE and Parks Victoria staff, as well as for Enterprise Agreement with VPS staff. seasonal employees in roles of emergency VPS staff 3738 4077 management centred on fire suppression control, During the year, the Department established Principal Scientists 46 50 planning, logistics and operations. Between 600 Consultative Committees with both the CPSU Executive Officers 48 53 and 1,000 personnel receive fire training annually. and the AWU. These Committees worked to Total 4121 4471 Training courses, developed by NRE, are further industrial cooperation within the consistent with national fire industry competencies. Department. Issues that progressed through the Note: excludes staff on leave without pay Firefighters and fire incident management Committees include policies in respect of During the year, executive officer numbers personnel receive regular retraining to maintain conversion of fixed term staff to ongoing and increased by five as follows: currency for their level of accreditation. human resource policies. NRE has:

• Transfer of one executive officer from In line with Minerals and Petroleum statutory • identified roles of a fixed term nature to be Aboriginal Affairs Victoria and three from responsibilities, uniform Occupational, Health converted to an ongoing employment Energy Policy to the Department. and Safety training is well advanced for relationship where fixed term arrangements • Filling of five approved vacancies and the operational staff as agreed with Victorian were inconsistent with the requirements of separation of four executive officers. WorkCover Authority. the Partnership Agreement

66 Natural Resources and Environment Annual Report LOST TIME INJURIES Note: a lost time injury is defined as an absence of l day or greater

100

80

• in total employed 864 people on an ongoing • the introduction of more flexible work basis as a result of these processes. practices in addition to those provided through industrial agreements • reviewed the engagement of contractors and 60 agency personnel to identify roles that could • role statements to ensure all staff and managers 1997-98 1998-99 1999-00 appropriately be provided through a direct understand their OH&S responsibilities. 2000-01

NRE employment relationship There was a continued emphasis on 25% reduction in lost time injuries over NRE achievements included the agreements implementation of the contractor management the last 4 years reached with the CPSU on implementation of a checklists, driver safety policy, a safety alert staffing restructure in Land Registry and the system, chemical information software, OH&S introduction of changed approaches in Crown training for staff and improved consultative Land Management. There was no time lost processes through the OH&S Committee. NRE has initiated a number of activities to through industrial disputes this year. OH&S management reporting is undertaken increase legislative compliance including: PORTFOLIO AGENCIES through a number of forums: • agreement by each executive member to • quarterly to the OH&S Statewide Committee The Department became increasingly active in undertake specific OH&S activities such as assisting portfolio authorities on industrial • a regular Workforce Reporting package direct participation in Workplace Inspections summary provided for the Executive relations issues and facilitated the conclusion of • finalisation of an annual OH&S plan to Management Team enterprise agreements and the resolution of ensure that issues raised in various industrial disputes. Sixteen statutory authority • reporting OH&S performance on a monthly workplaces meet OH&S obligations. enterprise agreements were processed through to basis to the Executive Management Team. For example, roll-out of the chemical Government endorsement. The key OH&S performance indicator adopted by management system-INFOSAFE, or system NRE is Lost Time Injuries. reviews appropriately addressing activities OCCUPATIONAL HEALTH AND SAFETY including OH&S management training, NRE has seen a 25% reduction in the number of Policies and programs are in place to ensure that policy and procedure finalisation, and lost time injuries over the past four years. The the human and financial costs of occupational injury contractor management. improvement is due to the greater focus placed by and illness are reduced. New initiatives included: the Department and its employees on workplace Improved injury management practices • a manual handling initiative to raise risk occupational health and safety. have resulted in a decline in claims costs awareness and improve practices with a 26% reduction in claims payments There were no fatalities recorded during the year. • management training in OH&S through the over the past year. The continuing reducing Frontline Management Initiative Recent data indicates that 40% of Lost-Time trend in claims numbers and claims • public tendering of NRE’s Employee Injuries arise from manual handling tasks payments demonstrates a positive outcome Assistance Program to allow a statewide and a further 36% from slips, trips, falls or being from the increased focus on OH&S resulting approach to counselling and critical struck by an object (as distinct from manual in a significant reduction of 29% in incident services handling incidents). premium payable.

Natural Resources and Environment Annual Report 67 OUR PEOPLE (CONTINUED)

WORKFORCE STATISTICS SELECTING ON MERIT

During the year a total of 86 decisions to exempt As at 30 June 2000 As at 30 June 2001 vacancies from advertisement were made by the Classification Female Male Total Female Male Total Secretary on the grounds that there was no Award 21 268 289 16 275 291 infringement of the merit and equity principle. VPS 1 146 96 242 122 761 98 All 86 vacancies were advertised to employees VPS 2 629 698 1327 691 654 1345 through notification in the Departmental ‘News@NRE’ and were subject to NRE’s VPS 3 403 758 1161 505 860 1365 grievance process. The following table VPS 4 144 563 707 211 599 810 summarises the reasons for non-advertisement. VPS 5 51 250 301 69 290 359

Principal Scientists 2 44 46 2 48 50 Reason for non-advertisement Number EO’s 15 33 48 16 37 53 Specialised role and duties 82 Sub-total 1411 2710 4121 1632 2839 4471 Members of disadvantaged groups 4 Staff on leave without pay 44 40 84 66 48 114 Total 86 Total 1455 2750 4205 1698 2887 4585

Of the 82 cases under ‘specialised role and Staff status duties’, 78 of the cases were associated with a Part time 211 43 254 266 55 321 program commenced in 1999/2000 relating to a Full time 1200 2667 3867 1366 2784 4150 reorganisation of the roles and duties undertaken Sub-total 1411 2710 4121 1632 2839 4471 by Registration Officers within the Titles Staff on leave without pay 44 40 84 66 48 114 Registration Services, Land Registry Branch of Total 1455 2750 4205 1698 2887 4585 the Department. All appointments followed the successful completion of training and an internal Employment type competitive selection process. Ongoing 752 2009 2761 1176 2363 3539 Fixed term 659 701 1360 456 476 932 Sub-total 1411 2710 4121 1632 2839 4471 Staff on leave without pay 44 40 84 66 48 114 Total 1455 2750 4205 1698 2887 4585

Executive Officers by gender

EO 1 1 0 1 1 0 1 EO 2 2 9 11 2 10 12 EO 3 12 24 36 13 27 40 Total 15 33 48 16 37 53

1. Tables reflect actual number of employees not equivalent full-time employees (EFT’s) 2. Employees on leave without pay are generally not in reported workforce numbers

68 Natural Resources and Environment Annual Report REVIEWING PERSONAL GRIEVANCES UPHOLDING PUBLIC SECTOR CONDUCT The Department resolved 24 grievances during The following identifies some of the significant 2000-01 (those lodged but not resolved prior to 30 initiatives and achievements: All new NRE staff are required to attend an June 2001 will be reported next year). orientation forum held every two months. • NRE ranked 13 out of 270 organisations Support for new staff is also available as an on- The outcomes of the grievances were as follows: in Australia in the annual benchmarking line staff orientation package on the Human study conducted by Managing Work/ Resources Branch Web site facility. Outcomes Number Life Balance The forum, supported by on-line training, Number resolved 24 • Was a finalist in the Australian Chamber of introduces the rights and responsibilities of Withdrawn by applicant 1 Commerce and Industry Corporate Work and employees, together with the role of the Number conciliated 21 Family Awards 2000. supervisor in the induction of new employees, • Continued implementation of the ‘Women in Heard - grievance upheld 0 focusses on: NRE’ strategy plan. Heard - grievance denied 2 • the Code of Conduct for the Victorian • Conducted two women’s forums to enable Public Sector The total number reflects an increase from the women to network and exchange their ideas seven grievances resolved in 1999-00. A summary on work/life issues. • the Department’s Grievance process of the grievances for 2000–2001 is: • A Women in Agriculture and Resource • Sexual Harassment Awareness • recruitment/selection (8) Management (WARM) Register • Equal Employment Opportunity was developed to increase women’s • work allocation (6) • discrimination. • harassment (5) participation in the decision making The Code of Conduct for the Victorian Public bodies of the sector. • work performance assessments and Sector is supplemented by the Department’s • A NRE wide compulsory sexual harassment employment conditions matters (5). internal code of conduct for scientific research. awareness program for all staff. The five harassment grievances were all resolved In accordance with the Code of Conduct for the following local conciliation • NRE employed 36 Youth Employment Victorian Public Sector, all executives, and other Scheme participants and coordinating While any number of harassment complaints employees as necessary, complete a Declaration placement of a further 53 in portfolio are unacceptable, the Department believes of Private Interests form on commencement with agencies as part of its commitment to that the training program and complaints the Department and annually thereafter. resolution process will support the elimination youth employment. of workplace harassment. • NRE agreed to double its intake of next year’s graduates from the Office MANAGING AND VALUING DIVERSITY of Public Employment Graduate The Department continued to implement Recruitment Scheme. initiatives and programs arising from the • Completed a pilot program for training previous year and developed additional initiatives four East Timorese nationals in aspects and programs in line with our commitment to of natural resource management and develop an organisational culture which values a government administration. diverse workforce.

Natural Resources and Environment Annual Report 69 COMMITMENT TO EXCELLENCE

AWARDS RECEIVED BY NRE STAFF

Name Award Division Description

Kwai Sinclair Aboriginal Young Achiever Aboriginal Affairs Victoria Educational and professional achievements as well as her leadership in her community

John Koehn NSW RiverCare 2000 Program Award Arthur Rylah Institute, For the Murray Cod radio-tracking project for Excellence in Science and Research Parks Flora and Fauna

Frankie Maclennan Churchill Fellowship Gippsland Region For her role within Rural Community Development

David Bull Victorian State Finalist, Port Phillip Region In recognition of his contribution to the monitoring of 2001 Animal Control Rabbit Calicivirus Disease (RCD) and for establishment Technology Awards and coordination of supplementary efforts to control serious rabbit infestations in the Bacchus Marsh area

AWARDS RECEIVED BY NRE

Area Award Description

Institute for Horticulture Development, Science and Research category Development of diagnostic protocols and contingency Biosecurity Team, Agriculture of the 2001 National Quarantine Awards plans to prevent and control plant diseases.

State Chemistry Laboratory, City of Wyndham Agriculture For state of the art technology providing a wide range of Agriculture 2001 and Agribusiness Award services to the food and agriculture industries (fourth consecutive year) and the quality of service and scientific rigour.

Flood Data Transfer project for rural Combined pre-disaster category in Project aggregated all available flood data in a and provincial Victoria, Catchment Emergency Management Australia’s 2001 geographical information system format. and Water Australian Safer Communities Awards. Victorian component.

Fire Management’s Integrated Fire National Technology in Government Award Rebuilt, integrated and improved all information systems Information System (IFIS) project, used to support the management of fire in NRE Forests Service and Parks Victoria.

IFIS and FireWeb, Forests Service IT Industry Inaugural Innovations Awards Integrated information system used to support the for 2001 - equal first place in the Off the management of fire in NRE and Parks Victoria Wall and equal third place in the Knowledge Management/Business Intelligence categories

70 Natural Resources and Environment Annual Report AWARDS RECEIVED BY NRE (CONTINUED)

Area Award Description

Valuation Best Practice project (VBP), Project Management Achievement Award Valuer-General’s office built up VBP through extensive Land Victoria for 2000 from the Australian Institute of consultation with municipalities across Victoria Project Management (AIPM).

Property Information Project, Gold Award at the 14th Government For establishing geospatial capabilities and infrastructure Land Victoria Technology Productivity Awards in Victorian municipal councils and creating a statewide two-way exchange of definitive land parcel, property and map information into the state’s digital map base

Marine Discovery Centre, Fisheries 2001 Coastal Excellence in Education Awards acknowledge best practice and innovation Nancy Tsernjavski - Award from the Victorian Coastal Council in the Marine Education field Primary Marine Education Award and Coast Action Cheryl Linford - Secondary Marine Education Award Travis Lee - Student Marine Educator Award

The Sunraysia Horticultural Centre, The WorkCover Health and Safety Award For Victoria’s Workplace Health and Safety Committee Agriculture of the Year

NRE’s Women in Agriculture and Certificate of Commendation in the 2001 Recognises and honours the achievements of Victorian Resource Management (WARM) People Management Awards, from the public sector organisations in applying the employment Register project, Regional Services Office of Public Employment (OPE) and conduct principles to managing people

Capital Policy Section, 2001 National Facility Management For facility management performance demonstrating Corporate Finance Association Annual Award innovation, contribution to corporate performance, and commitment to quality associated with asset management and the delivery of capital projects

Managing Work/Life Balance, Ranked 13 out of 270 organisations Annual benchmarking study conducted by Managing Human Resources in Australia. Work/Life Balance.

The Responsible Pet Ownership Silver Serif by the Australian Institute For excellence and innovation in communication. community awareness campaign, of Professional Communicators Corporate Communication and Information

Customer Service Centre, 2000 National Public Sector Awards High commendation in Customer Service Corporate Communication for Marketing Excellence and Information

Natural Resources and Environment Annual Report 71 BUSINESS MANAGEMENT

Capital Policy Section staff won the 2001 National Facility Management Association Annual Award. Left to right: Colin King, Judy Marks, Garry Nugent, Barbara Olexzek, Franklin Trouw, Geoff Sloan, with NRE Secretary, Chloe Munro

KEY ACHIEVEMENTS

Corporate and business planning processes such as an internal skills directory, The Legislation Officer also liaises with the established the NRE objectives aligned to standardised project methodology and a Cabinet Secretariat at the Department of Premier Government outcomes. formal exit program. and Cabinet, instructs the Office of the Chief Parliamentary Counsel on the drafting of New systems and processes were implemented to • Delivery of customer services in line with legislation, provides advice to other Government manage the transitional issues and ongoing industry standards for efficiency, accuracy and compliance requirements associated with the customer satisfaction. stakeholders about the proposed legislation, assists Goods and Services Tax. in briefing Members of Parliament about proposals POLICY DEVELOPMENT that are being considered by the Parliament and A catalogue management system, that includes all the establishment of the legislation. contracts and major suppliers of goods and In line with Government policy, a triple bottom services required by the Department and line approach to decision making is being PLANNING PROCESSES providing a simple and effective method of developed for adoption across the Department. NRE’s corporate and business planning processes sourcing goods and services, was established. The policy is embodied in NRE’s purpose and were significantly enhanced during the year. structure and ensures Victoria’s natural and NRE’s contribution to the ‘whole of government’ NRE’s longer term objectives were refined and a cultural assets are managed to secure social, approach to information dissemination to the set of performance indicators developed. These environmental and economic benefits for both Victorian community was improved through indicators will be used by the Executive current and future generations. NRE’s involvement in reviewing best practice Management Team to monitor progress towards communication. The development of closer achievement of NRE’s objectives. relationships with governments, rural and PORTFOLIO SUPPORT A revised planning framework and an integrated regional Victoria and industry groups allowed The Legislation and Cabinet Services Unit of the planning process were established to align all of timely delivery of quality services and Department coordinates the development of NRE businesses to the Department’s objectives. information to the community. proposals for new or amended primary and Each Division completed detailed business plans subordinate legislation. For each legislation FUTURE DIRECTIONS for 2001-02. proposal the Unit assists the relevant Division to: • Delivery of an improved communications A new process for reviewing progress against the • develop a process that will satisfy the framework for NRE to further increase Corporate Plan was instituted. The process Government’s requirements for community community access to quality information. involves the Executive Management Team and industry consultation • Knowledge Management Strategy meeting each quarter to identify areas that are • comply with government policy implementation through communication of going well and other areas that require attention. clear policy and delivery of key outcomes • comply with cabinet procedures The review process was very successful with

72 Natural Resources and Environment Annual Report Melbourne Docklands and City Crown Land is managed by NRE

refinements to plans, identification of new actions NRE is taking a leadership role in the • Establishment of a framework for ‘State of the and projects and the significant cross-fertilisation implementation of the Government’s sustainable Environment Reporting’ in Victoria of ideas and learning taking place. development agenda across rural and regional • Development of a comprehensive ‘Victorian Victoria. It is focused on the environment and on Over the next twelve months NRE will further Greenhouse Strategy’. the sustainable contribution of natural resource strengthen its planning and review processes. It will NRE is also making a significant contribution to industries to the economy. NRE delivers many of implement a Plan, Deploy and Review (PDR) Cycle the development of international, national and its services in partnership with community groups to build and improve on current business manage- state-wide policy positions, such as natural and has a long history of community engagement. ment processes. The PDR Cycle aims to achieve: resource management, greenhouse policy, forest These strong links with the community enable policy, marine policy, salinity and water • an enhanced strategic planning cycle NRE to have a good grasp of the current and management, endangered species protection, • operational business plans for all of NRE emerging issues for regional and rural Victorians. genetically modified organism management and • strengthened deployment through clearer NRE delivers a range of programs and practices pollution abatement. accountabilities, improved project that address the TBL approach including: development and performance management ENVIRONMENTAL MANAGEMENT • Water for Development and the Environment • improved evaluation and review processes, • Land Quality Improvements During the year an Environmental Management both strategically and operationally System (EMS) was introduced to facilitate the • Native Forest Protection and Production • significant engagement of all parties in all management of NRE’s environmental impacts. parts of the PDR Cycle. • Improving Biodiversity and Land Quality The system, called the ‘Eco-Office Challenge’, • Community Monitoring of Mining Sites is a comprehensive program that addresses TRIPLE BOTTOM LINE NRE’s environmental office impacts, including: • Research to Improve Agriculture Sustainable development requires the • the quantity and types of paper used NRE is actively progressing the implementation simultaneous pursuit of economic prosperity, of environmental policies. • the amount of energy used, and the energy environmental quality and social wellbeing. The efficiency of electrical appliances and work sites concept of the triple bottom line (TBL) provides a Major examples include: framework to guide an organisation’s strategic • the quantity of water used at NRE offices approach to sustainable development. TBL also • Development of proposals to establish a and gardens provides a mechanism by which performance ‘Commissioner for Ecologically Sustainable towards sustainable development can be Development’ and legislation for ‘Victorian measured and monitored. Environmental Assessment Council’

Natural Resources and Environment Annual Report 73 BUSINESS MANAGEMENT (CONTINUED)

Young visitors enjoying a colouring-in activity at the Royal Melbourne Show

ENVIRONMENTAL MANAGEMENT (CONTINUED)

• transport types, how transport is used, Major promotional activities The strategy employed a range of activities to and alternatives Victorian Greenhouse Strategy raise awareness including local council briefing • how much waste is produced and how A discussion paper was released in September sessions, television advertising, targeted it is disposed 2000 as part of an extensive community distribution of information fact sheets and posters. consultation process leading to the development • NRE’s purchasing policies and practises Royal Melbourne Show of a Victorian Greenhouse strategy. • construction of new buildings or The theme of the Department’s stand at the Support material was produced outlining the refurbishment of existing buildings. Royal Melbourne Show, held in September 2000, major issues and processes for input and was ‘We are NRE’. The display’s focus was on All NRE offices will be included in the annual comment including a summary brochure and the Department’s role in managing Victoria’s ‘environmental’ audit and all staff will be detailed website, which were of enormous value land, water and living resources for today and the encouraged to contribute ideas to the Eco-Office during the statewide series of public forums. future, and the skilled staff involved in these Challenge. For example, staff will be asked to More than 100 submissions were received during responsibilities. More than 200 Departmental review and improve their own work practices, the three-month consultation period from both staff assisted at the stand where thousands of taking into consideration how they use materials the public and key stakeholder groups. This show visitors were able to avail themselves of the and equipment, what they purchase and valuable input and extensive consultation with famous Aussie mug of tea in a souvenir mug, vehicle usage. the entire community will contribute significantly along with an NRE activity book. CORPORATE COMMUNICATIONS to the development of the final strategy and result Newtech conferences in comprehensive recommendations that balance NRE is committed to providing comprehensive For the past four years, Newtech interactive the needs of all Victorians. and timely information to the Victorian technology conferences have introduced community through its corporate communication Science Awards rural and regional Victorians to technology activities. This information can be accessed The Science Awards aim to promote the pursuit to help them better manage and understand through NRE’s library service, web-based of excellence in the agricultural and resource their land. technologies, Customer Service Centre, sciences for the benefit of all Victorians. In The conference circuit is unique in Australia. exhibitions and field days as well as an extensive December 2000, these awards were presented by Newtech conferences were held in Bendigo, range of publications. the Australian of the Year and a NRE Chief Mildura and Geelong and brought together Scientist, Sir Gustav Nossal. Over 200 people In the quest to increase community awareness of land information experts and trade exhibitors attended the presentation including the Ministers NRE’s services, achievements and to strengthen for the conferences. Government and non- for Agriculture; Environment and Conservation; relationships, the Department welcomes every government organisations benefit from the and Energy and Resources. opportunity to liaise with the media, consult with conferences, which present new technologies stakeholders and encourage local participation in Responsible Pet Ownership in land information and land management, decision-making processes. Effective The second phase of a community awareness and highlight local regional applications communication is a high priority for NRE and the strategy on Responsible Pet Ownership was and developments. They also provide delegates Department will continue to improve the methods developed around the two key themes of ‘Confine with the opportunity to network with statewide and frequency of information provision to meet Your Dog Backyard is Best’ and ‘Make Sure Your users, technology designers, trade and industry public expectations. Cat Naps When You Do’. services and providers.

74 Natural Resources and Environment Annual Report PUBLICATIONS

The following list provides a range of NRE’s major publications. All NRE publications are held in the central library and can also be accessed via the website www.nre.vic.gov.au/services/

Audit of compliance with the Code of Government response to the Environment Security of electricity supply: Forest Practices for Timber Production (and Conservation Council’s marine, coastal and taskforce report associated prescriptions) in State Forests of estuarine investigation final recommendations Tasman Fold Belt System in Victoria – Victoria 1998/99 Grapecheque Program final report 1997-2000 special publication Audits of compliance with the Code of Guide to the Petroleum Industry in Victoria The Rural Women’s Network: survey analysis Practice for Fire Management on Public Land conducted in Victoria’s parks and Land systems of Victoria Timber pricing review: a discussion paper forests in 1999 NRE – Annual Report 2000-01 Urban water supplies 2001- price review of water, Development opportunities within the NRE - working with rural women. drainage and sewerage services in Victoria. Loddon Murray 2000 Plus Prime NRE - keeping Victorians informed Value-adding to seafood, aquatic and fisheries Development Zones: a land suitability and waste through aquafeed development environmental assessment NRE corporate plan 2000-2003

Dryland salinity control options in the Otway Basin Publications Victorian Greenhouse Strategy West Wimmera discussion paper : summary Parks, Flora and Fauna biodiversity research Electonic conveyancing Victoria: a better strategic plan 2000-2005 Victorian hunting guide conveyancing system for all Victorians Pillars for balanced growth - minerals and Victorian Marine Habitat Database: seagrass Entitlements to the Murray: outcomes of petroleum for the 21st century mapping of WesternPort work to define how Victoria’s River Murray Prosperity with care Victorian Recreational Fishing Guide water is to be shared our Catchments. Responsible pet ownership program for schools : Environmental inventory of Victoria’s marine [teachers resource kit] WARM (Women in Agriculture and Resource ecosystems: stage 3: understanding biodiversity Management) register tool kit. representativeness of Victoria’s rocky reefs Restoring our catchments: Victoria’s draft native vegetation management framework Water for growth - realising the potential of Exotic marine pests in the Port of Victoria’s water resources. Melbourne, Victoria Rural water supplies, 2001 price review of water, drainage and sewerage services in Victoria Westernport fish habitat 1998 Exotic marine pests in Westernport Salinity ground water monitoring update for the Farm forestry in southern Australia : a focus on Wetlands : resource material for teachers [kit] Loddon Uplands region: with special reference to clearwood production of specialty timbers effectiveness monitoring Wetlands, the heart of the south-west Wimmera Farm$mart : plans that work. Social capability in rural Victoria: the Food NRE produced 283 technical publications in Field guide to pests, diseases and disorders of and Agriculture and Natural Resource international and peer review agricultural vegetable brassicas Management Sectors scientific journals.

Natural Resources and Environment Annual Report 75 RESEARCH AND DEVELOPMENT

Innovation in science is increasingly seen as a key factor underpinning export competitiveness, employment growth and economic well being. Public sector investment in research and development is important for innovation in public benefit areas, however, the resultant knowledge and information also drives innovation in the private sector (90% of Australia’s patents can be traced to public sector investment in research and development).

Investment in innovative research and NRE research and development is delivered Through their wide range of experiences and development programs through NRE is helping to through fifteen scientific research institutes, skills in scientific research and development, establish Victoria as a centre of knowledge in the located throughout Victoria, with implementation these four eminent scientists guide the Asia-Pacific region. NRE research is providing a of the research carried into communities through Department’s investment in knowledge creation point of entry to the international growth extension programs. There are approximately and innovation. industries of the next decade – sustainable 1200 highly skilled staff working in our network Major Research and Development activities include: environmental management, biotechnology and of 17 research locations across Victoria. • biodiversity quality high value foods. The majority of staff are based in rural and • marine and freshwater biology A vibrant, dynamic, innovative, scientific regional Victoria and are both close to the issues • forestry and fire management community in NRE, world competitive in many they are addressing and part of the communities • earth sciences areas, has been instrumental in supporting the that the issues affect. This research network food and agriculture sector of Victoria’s economy comprises 12 NRE science institutes together • land information and resource assessment that accounts for 33% of the State’s total exports. with the Forest Science Centre, the Marine and • soil and water sciences Freshwater Research institute and the Arthur • animal sciences and biotechnology Research and development programs to optimise Rylah Institute of Environmental Research. the productivity of natural resources, while • plant sciences and biotechnology conserving the environment for future Strategic advice on NRE research and • food sciences and nutrition generations, requires new technologies, development is provided by the Chief Scientists, • land, catchment, soil, water and nutrient innovation and involvement by the community Sir Gustav Nossal, Professor David Penington, management systems managing the State’s natural resources. Dr John Stocker and Dr Graham Mitchell. • pest and disease management.

76 Natural Resources and Environment Annual Report Top left: NRE research and development is delivered through 15 scientific research institutes. Top right: Research scientists David Shoesmith and Tim Clarke, with microbiologist, Elaine Cuthbertson, discussing the milk meter developed at NRE’s Dairy Research Institute.

NRE INSTITUTES

The Pastoral and Veterinary Institute, The Centre for Land Protection Research, The Victorian Institute for Dryland Hamilton, is a major research and Bendigo, specialises in natural resource Agriculture, Horsham and Walup, is the development institute supporting the management, sustainable regional development, major research institute supporting the grains sheep and pastoral (grazing) industries. catchment management, soil and land capability industry by development of new varieties assessment, management of salinity, protection of for improved disease resistance, yield and Key achievements groundwater resources and building capacity in processing ability and development of • Pasture improvement through rural and regional social research. sustainable production systems. development of ryegrass and white clover cultivars, genetic improvement Key achievements Key achievements of livestock, and linking wool • integration of a range of social economic and • the release of new varieties of field peas, production with processing. biophysical factors for regional development, wheat, oilseeds and lentils. hazard analysis, catchment management, local Future directions Future directions government planning and policy analysis. • aims to be recognised as a centre • improve the profitability and competitiveness of excellence for innovative and Future directions of Victoria’s Grains Industries by working competitive, client focused research, • aims to increase agricultural production from with industry to develop and promote extension and quality assurance activities healthier catchments, make science based sol- adoption of varieties and sustainable in sustainable agricultural systems. utions more available to regional Victoria and production systems to deliver a consistent engaging the regional community in providing supply of quality products to domestic and input to NRE’s decision-making processes. international markets.

Natural Resources and Environment Annual Report 77 RESEARCH AND DEVELOPMENT (CONTINUED)

NRE INSTITUTES (CONTINUED)

The Institute of Sustainable Irrigated The Rutherglen Research Institute, Rutherglen, The Institute for Horticultural Development, Agriculture, Tatura and Kyabram, is the focuses on sustainable dryland agriculture, the Knoxfield, Toolangi and Ovens, is a leader in the major research and technology transfer development of natural resource based industries development of the Victorian horticultural and centre supporting sustainable irrigated and the associated investment in social and food industries. The Institute has a statewide role agriculture in northern Victoria, particularly economic infrastructure. as a centre for research and development and the Shepparton Irrigation Region. Key achievements works with a range of customer groups including growers, packers, processors, exporters as well as Key achievements • conducted research into organic cropping and the wholesale and retail sectors. • made some major advances in livestock enterprises to increase the area under understanding partial rootzone organic systems, enhance grower networks Key achievements drying to improve water use efficiency and to increase the export of organic produce. • identified a range of strategies which reduce in perennial horticultural crops. Future directions industry’s reliance on methyl bromide for pre- • to lead the development of dryland plant soil disinfestation. This will help to Future directions agricultural systems that enhance the meet Australia’s commitment under the • aims to be Australia’s centre of excellence in environment, the community and the Montreal Protocol to phase out use of methyl innovative science and technology, leading the economy by providing solutions to treat bromide by the year 2005. development of sustainable irrigated regions dryland salinisation and acidification, decline Future directions and enterprises. in soil organic matter and nutrients and • provide research to realise opportunities The Sunraysia Horticultural Centre, degradation of water quality. for new products and the export of raw, Mildura, is a research, educational The Dairy Research Institute, Ellinbank, is semi-processed and processed products and training development institute for Australia’s largest dryland research and in an increasingly competitive industry, horticulture, specialising in irrigated development institute servicing the dairy industry especially in the development of new rapid crops of the region especially grapes, and other grazing industries. diagnostic probes to assist in the prevention citrus and vegetables. of disease incursions. Key achievements: Key achievements • researched the impact of management The Keith Turnbull Research Institute, • facilitated reduced chemical usage practices on our natural resources, specifically Frankston, is dedicated to the development and in the viticulture industry through in the areas of nutrient export, primarily implementation of integrated and sustainable research on better targeted control phosphorus and nitrogen at a paddock scale management strategies for pest plants, animals of ‘powdery mildew’, a major disease across Gippsland. The research is critical and insect pests in urban, agricultural and of grapevines. in developing sustainable and productive natural ecosystems to protect agricultural industries and the preservation of biodiversity. Future directions grazing systems. • continue to provide research, development Future directions Key achievements and information transfer, and commercial • address the challenges that affect the dairy • conducted research into assessment of the services to irrigated horticultural industries industry. These include social concerns for the invasiveness and potential impact of weeds in Sunraysia, other areas of Victoria, Australia environment, consumer attitudes to food and has developed a number of national and the rest of the world. safety and changes such as dairy deregulation. strategies for weed control.

78 Natural Resources and Environment Annual Report Future directions Future directions Future directions • provide an increasing focus on identifying • increase its focus on research and • focus on water quality and yield, particularly potential weeds before they threaten our development capability in natural in relation to understanding and quantifying agricultural industries and natural environment. resource management especially in linking the impacts of fire, harvesting and roading The Plant Biotechnology Centre, Latrobe, is the biophysical characteristics with social and related disturbances and their management. major plant research and development institute economic aspects. Marine and Freshwater Resources Institute supporting the new technology development in The Victorian Institute of Animal Science, provides research, consultancy and education genetic sciences for the plant based industries. Attwood and Werribee, provides specialist services required for the sustainable management Key achievements production, animal health and biological sciences of aquatic resources and their environment. research, and diagnostic services for the animal • developed the world’s first alfalfa mosaic Key achievements industries. virus field-immune white clover plants. It has • researched and developed new aquaculture used gene technology to overcome species Key achievements industries and production of fish for specific barriers to develop multi gene • established a world leading research program stocking purposes. resistance to the virus that causes significant to develop a vaccine for nematode parasites. Future directions losses in forage legumes. Future directions • research, monitor and assess Victoria’s Future directions • build its capability in biotechnology to provide recreational and commercial fisheries to • focus on developing technologies and products access to opportunities to improve animal provide information for the sustainable use for more efficient production, better quality production systems and food products for the of those resources. and a safer environment in partnership with benefit of consumers, industries and the industry and other research organisations. Arthur Rylah Institute of Environmental environment. Research, Heidelberg, is a leading centre for The State Chemistry Laboratory, Werribee, applied ecological research and is the research supports the scientific activities of Agriculture Forest Science Centre offers a wide range base for the Parks, Flora and Fauna program Victoria, other Government Departments, industry of research, development and technical services of NRE. and the public, through the provision of specialist to support the establishment, management analytical, research, investigation and consultancy and utilisation of hardwood and softwood Key achievements services in chemistry and related services. plantations, natural forests, and farm forests • providing expert scientific and strategic and services a diverse range of clients in the advice on the conservation and enhancement Key achievements public and private sectors. • instrumental in developing a regional of flora and fauna and the management of framework in the West Gippsland Region to Key achievements processes that affect these assets on both be used Australia wide for monitoring, • better understanding and quantifying the public and private land. forecasting and reporting on the condition of impacts of harvesting, roading and fire on Future directions land, vegetation and water resources in an soil, physical and chemical properties, and • conserving Victoria’s biological diversity ongoing structured way. these impacts on site productivity. within a context of sustainable development.

Natural Resources and Environment Annual Report 79 GENE TECHNOLOGY REPORT

Report on Compliance with Protocol and Procedures for Research and Development involving Genetically Modified Organisms.

In August 2000, the Minister for Agriculture and The Secretary has established a Gene Technology Advice to proceed has been received from Aboriginal Affairs, the Minister for Environment Standing Committee within the Department to the OGTR for a field trial of fungal resistant and Conservation and the Minister for Energy ensure appropriate policy coordination and canola and an extension to a field trial of and Resources, as the Ministers responsible for governance of departmental research and activities white clover resistance to alfalfa mosaic the sustainable use and protection of Victoria’s involving genetically modified organisms. (ref P60) virus. Apart from these two field trials, natural resources and environment, released a Since August 2000, the Secretary has approved the NRE research and development activities Ministerial Direction to the Department of following three projects under the NRE Protocol: have been categorised by the OGTR as Natural Resources and Environment for research ‘low risk dealings’. This type of work has • One new proposal for a planned field trial and development projects involving genetically been assessed over time as presenting involving the evaluation of canola modified modified organisms (GMOs). The NRE Protocol minimal biosafety risks when conducted for resistance to fungal disease and Procedures for Research and Development within approved containment conditions. • A small scale contained project involving the involving Genetically Modified Organisms This work involves GMOs that either management and maintenance of transgenic reflects the Government’s commitment to have limited capacity to reproduce, do not pigs to be used in transplantation ensuring that its biotechnology research and contain elements that may cause disease development projects, particularly those involving • Small scale contained work related to the in humans, animals, plants or fungi, genetically modified organisms are: dairy genomics program. or involve a specified list of well charact- erised systems. • demonstrably in the public interest The Department has also notified the Commonwealth Regulator for dealings with • compliant with all relevant Commonwealth Details of NRE research and development GMOs that have involved extensions or and State regulations to protect the activities are regularly published on the variations to existing projects. environment and public health NRE website. Details of OGTR approved In accordance with the national legislation for field trials are published in the Common- • transparent and publicly accountable. gene technology, NRE is an accredited wealth Gazette and further details of The Department has developed detailed procedures organisation with a properly constituted Institute projects are to be published on the to meet the requirements of both the NRE Research Biosafety Committee, and is able to conduct public database of the Gene Technology and Development (GMO) Protocol and the national dealings with GMOs. The Office of the Gene Regulator, available via the Internet regulatory requirements for gene technology under Technology Regulator (OGTR) has also approved (www.ogtr.gov.au ) the Gene Technology (Commonwealth) Act certified containment facilities for contained work 2000, which came into force on 21 June 2001. with GMOs by NRE.

80 Natural Resources and Environment Annual Report DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENT

FINANCIAL REPORT – 30 JUNE 2001

CONTENTS

Statement of financial performance 82

This financial report covers the Statement of financial position 83 Department of Natural Statement of cash flows 84 Resources and Environment as an individual entity. Notes to the financial statements 85

The Department of Natural Accountable officer’s declaration 124

Resources and Environment is a Auditor-General’s report 125 government department of the State of Victoria.

Its principal address is: Department of Natural Resources and Environment 8 Nicholson Street East Melbourne VIC 3002

A description of the nature of the Department’s operations and its principal activities is included in the Report of Operations (refer p14, p15).

For queries in relation to our financial reporting please call 13 61 86, or visit our website www.nre.vic.gov.au STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2001

Note 2001 2000 $’000 $’000

Revenue From Ordinary Activities

Output appropriations 1(g),4 783,141 737,790

Additions to net assets appropriations 1(g),4 12,514 22,126

Other revenue and revenue from other parties 1(g),4 124,979 218,271

Resources received free of charge 1(a),4 3,169 1,341

Receipts forwarded to the Consolidated Fund 4 - (88,763)

923,803 890,765

Expenses From Ordinary Activities

Employee benefits 1(s),25 (264,817) (247,668)

Supplies and services (307,983) (292,263)

Depreciation and amortisation 1(k),6 (26,882) (22,086)

Transfer payments, grants and subsidies (240,816) (222,983)

Resources provided free of charge (8,786) (1,792)

Capital asset charge (66,439) (63,321)

Transfers to consolidated revenue - (350)

(915,723) (850,463)

Net result for the reporting period 8,080 40,302

Net (decrease)/increase in asset revaluation reserve (2,091) 149,524

Net recognition of assets/liabilities 18(b)(ii) - 30,356

Total revenues, expenses, revaluation and other adjustments recognised directly in equity (2,091) 179,880

Total changes in equity other than those resulting from transactions with Victorian State Government in its capacity as owner. 18(d) 5,989 220,182

The above statement of financial performance should be read in conjunction with the accompanying notes.

82 Natural Resources and Environment Annual Report STATEMENTFINANCIALS OF FINANCIAL POSITION AS AT 30 JUNE 2001

Note 2001 2000 $’000 $’000

Current Assets

Cash 7,19 59,900 53,545

Receivables 8,19 77,578 76,153

Prepayments 1,288 1,893

Inventories 9 7,271 6,625

Other financial assets 10,19 15,306 26,726

Other assets 13 4,002 -

Total Current Assets 165,345 164,942 Non Current Assets

Property, plant & equipment 11 2,494,817 2,506,861

Intangible Assets 12 43,960 25,132

Other assets 13 7,870 1,525

Total Non Current Assets 2,546,647 2,533,518 Self-Generating and Regenerating Assets

Natural Resource Assets 14 311,166 313,388

Total Assets 3,023,158 3,011,848 Current Liabilities

Payables 15,19 28,334 21,776

Provisions 17 23,592 22,895

Deposits repayable 19 275 351

Unearned revenue 612 225

Total Current Liabilities 52,813 45,247 Non Current Liabilities

Payables 15,19 1,980 2,040

Interest bearing liabilities 16,19 8,199 8,199

Provisions 17 64,602 58,538

Total Non Current Liabilities 74,781 68,777

Total Liabilities 127,594 114,024

Net Assets 2,895,564 2,897,824 Equity

Reserves 18(a) 941,949 944,040

Accumulated surplus 18(b) 1,953,615 1,953,784

Total Equity 2,895,564 2,897,824

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

Natural Resources and Environment Annual Report 83 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2001

Note 2001 2000 $’000 $’000

Cash Flows From Operating Activities

Receipts from Government 802,497 807,365

Receipts from other entities 110,277 154,686

Receipts forwarded to the Consolidated Fund - (88,763)

Payments to suppliers and employees (575,685) (523,659)

337,089 349,629

Interest received 2,259 1,088

Transfer payments, grants and subsidies (240,816) (222,983)

Capital asset charge (66,439) (63,321)

Borrowing costs expense (400) (350)

Net cash inflow from operating activities 30 31,693 64,063

Cash Flows From Investing Activities

Payments for property, plant and equipment (34,685) (36,301)

Payment for software (11,682) (10,222)

Redemptions/(payments) for investments 11,344 (26,571)

Proceeds from sale of property, plant and equipment 1,931 5,344

Net cash outflow from investing activities (33,092) (67,750)

Cash Flows From Financing Activities

Proceeds/(repayment) of borrowings and advances 15 7,754 (3,900)

Net cash inflow/(outflow) from financing activities 7,754 (3,900)

Net increase/(decrease) in cash held 6,355 (7,587)

Cash at the beginning of the financial year 53,545 61,132

Cash at the end of the financial year 7 59,900 53,545

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

84 Natural Resources and Environment Annual Report NOTES TO THE FINANCIAL STATEMENTS

CONTENTS

1 Summary of significant accounting policies 86

2 Output groups 92

3 Restructuring of administrative arrangements 98

4 Revenue 99

5 Summary of compliance with annual 99 parliamentary appropriations

6 Result for the reporting period 102

7 Cash assets 102

8 Receivables 103

9 Inventories 103

10 Other financial assets 104

11 Property, plant and equipment 105

12 Intangible assets 108

13 Other assets 108

14 Natural resource assets 109

15 Payables 110

16 Interest bearing liabilities 110

17 Provisions 110

18 Equity and movements in equity 111

19 Financial instruments 113

20 Ministers and accountable officer 115

21 Remuneration of executives 116

22 Remuneration of auditors 117

23 Contingent liabilities 117

24 Commitments for expenditure 118

25 Employee entitlements 119

26 Administered items 120

27 Ex-gratia payments 122

28 Events occurring after reporting date 122

29 Bonds and guarantees held in trust 122

30 Reconciliation of results from ordinary activities 123 to net cash inflow from operating activities

31 Non cash financing and investing activities 123

Natural Resources and Environment Annual Report 85 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2001

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

This general purpose financial report has been prepared in accordance with the Financial Management Act 1994, Australian Accounting Standards, Statements of Accounting Concepts and other authoritative pronouncements of the Australian Accounting Standards Board, and Urgent Issues Group Consensus Views.

It is prepared in accordance with the historical cost convention, except for certain assets and liabilities which, as noted, are at valuation. The accounting policies adopted, and the classification and presentation of items, are consistent with those of the previous year, except where a change is required to comply with an Australian Accounting Standard or Urgent Issues Group Consensus View, or an alternative accounting policy or an alternative presentation or classification of an item, as permitted by an Australian Accounting Standard, is adopted to improve the relevance and reliability of the financial report. Where practicable, comparative amounts are presented and classified on a basis consistent with the current year.

(a) Reporting entity

The financial statements include all the controlled activities of the Department of Natural Resources and Environment. In the process of reporting the Department as a single unit, all transactions and balances between the Output Groups as specified in Note 2 have been eliminated.

Administered resources The Department of Natural Resources and Environment administers but does not control certain resources on behalf of the Victorian Government. It is accountable for the transactions involving those administered resources, but does not have the discretion to deploy the resources for achievement of the Department’s objectives. For these resources, the Department acts only on behalf of the Victorian Government. The accrual basis of accounting has been used in accounting for administered resources.

Transactions and balances relating to these administered resources are not recognised as Departmental revenues, expenses, assets or liabilities, but are disclosed in the applicable output schedules (see Note 26).

Other administered activities on behalf of parties external to the Victorian Government The Department of Natural Resources and Environment has responsibility for transactions and balances relating to administered funds on behalf of third parties external to the Victorian Government. Revenues, expenses, assets and liabilities administered on behalf of third parties are not recognised in these financial statements as they are administered on a fiduciary and custodial basis, and therefore not controlled by the Department.

Non-current assets All non-current assets, including Crown Land, controlled by the Department are reported in the statement of financial position. Non-current assets which the Department administers on behalf of the Victorian Government are reported as administered resources in Note 26.

The Department capitalises expenditures on individual items of $1,000 or more, and records these as non current assets. Aggregate expenditure on items that will, when completed, result in non current assets providing future economic benefits, are recognised as construction in progress. Construction in progress is capitalised and placed in service from the time the asset is commissioned for use.

Where expenditure exceeds $10,000 on the development of databases the Department recognises databases as assets at the value of the total expenditure on the development of the database. The capitalised costs of developing the Department’s Cadastral Map database are recognised as assets and included in Intangible Assets in the statement of financial position. Other existing databases of the Department are not recognised as assets due to issues related to the reliability of measurement.

In accordance with Australian Accounting Standard 35 Self-Generating and Regenerating Assets the Department recognises land under commercial native forests separate from the productive trees. Land in the commercial native forests area of State Forests is included in the value of State Forests and disclosed in Note 11 Property, plant and equipment. The value of productive trees in commercial native forest is recognised as natural resource assets and disclosed in Note 14 Natural resource assets.

The costs of constructing major roads in National Parks and State Forests are capitalised and included in the statement of financial position when commissioned for use. Costs associated with minor tracks and trails are expensed as the costs are incurred.

86 Natural Resources and Environment Annual Report FINANCIALS

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Trust Funds The Department receives monies in a trustee capacity for various purposes. Trust funds, where the Department has discretion over the expenditure, in the pursuit of its objectives, are controlled trust funds. In accordance with the Department of Treasury and Finance accounting policy, controlled funds held in trust are reported as cash and are disclosed in Note 7 Cash assets. Trust Funds, where the Department performs only a custodial role in respect of the monies received and where these monies cannot be used for the achievement of the Department’s objectives, are not brought to account in the financial report, but are disclosed as cash held in trust in Note 26 Administered items.

(b) Cash

For purposes of the statement of cash flows, cash includes short term deposits which are readily convertible to cash on hand and are subject to an insignificant risk of changes in value, net of outstanding bank overdrafts. Cash also includes funds held in trust at the Department of Treasury and Finance that the Department has received for future activities.

(c) Rounding of amounts

Amounts in the financial report have been rounded to the nearest thousand dollars, or in other cases, to the nearest dollar.

(d) Objectives and funding

The Department’s objective is to ensure Victoria’s natural and cultural assets are managed to secure social, environmental and economic benefits for both current and future generations.

The Department is predominantly funded by accrual based Parliamentary appropriations for the provision of outputs. It generally provides, on a fee for service basis, various goods and services.

(e) Outputs of the Department

Information about the Department’s output groups and the expenses, revenues, assets and liabilities which are reliably attributable to those output groups is set out in the Output Groups Schedule (Note 2). Information about expenses, revenues, assets and liabilities administered by the Department are given in the schedule of administered expenses and revenues and the schedule of administered assets and liabilities (Note 26).

(f) Acquisitions of assets

The cost method of accounting is used for all acquisitions of assets. Cost is measured as the fair value of the assets given up or liabilities undertaken at the date of acquisition plus incidental costs directly attributable to the acquisition. Assets acquired at no cost, or for nominal consideration, are initially recognised at their fair value at the date of acquisition.

(g) Revenue recognition

All revenue received by the Department is generally required to be paid into the Consolidated Fund. Revenue becomes controlled by the Department when it has been appropriated by the Victorian Parliament and the appropriation is applied by the relevant Minister. In respect to revenue from the provision of outputs, Commonwealth grants and sales of non-current physical assets, the Department may be permitted under section 29 of the Financial Management Act 1994 to have these revenue initially paid into the Consolidated Fund and an equivalent amount is provided by appropriation. In these instances the revenue “received” by the Department is administered and disclosed in Note 26.

Amounts disclosed as revenue are, where applicable, net of returns, allowances and duties and taxes. Revenue is recognised for each of the Department’s major activities as follows:

(i) Output revenue Revenue from the outputs the Department provides to Government is recognised when those outputs have been delivered and the relevant Minister has certified delivery of those outputs in accordance with specified performance criteria.

Natural Resources and Environment Annual Report 87 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2001 (CONTINUED)

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(ii) User Charges and Fees Revenue from the provision of goods and services to other Governments and the private sector (refer note 1(d)) is recognised in accordance with the percentage of completion method.

The Department recognises controlled and administered user charges and fees at the time an invoice is issued for the goods or services provided, or cash received where no invoice supports the goods or service provided, with the exception of receipts for Land Titles services and a portion of log sales which are invoiced monthly based on an annual royalty averaged over 12 months. Where the provision of goods and services is incomplete at the reporting date, the value of the incomplete portion is recognised as unearned and revenue for the period is adjusted and a corresponding liability recognised.

(iii) Commonwealth grants Grants payable by the Commonwealth Government are recognised as revenue when the Department gains control of the underlying assets. Where grants are reciprocal, revenue is recognised as performance occurs under the grant. Non-reciprocal grants are recognised as revenue when the grant is received or receivable. Conditional grants may be reciprocal or non-reciprocal depending on the terms of the grant.

(iv) Taxes and fines As the Department does not gain control over assets arising from taxes and fines no revenue is recognised. The Department collects these amounts on behalf of the Crown. Accordingly, the amounts are disclosed as revenues in the schedule of administered revenues and expenses (see Note 26).

All other amounts of revenue over which the Department does not gain control are disclosed as administered revenue in the schedule of administered revenues and expenses (see Note 26).

(h) Receivables

All debtors are recognised at the amounts receivable as they are due for settlement at no more than 30 days from the date of recognition.

Collectability of debtors is reviewed on an ongoing basis. Debts which are known to be uncollectable are written off. A provision for doubtful debts is raised when some doubt as to collection exists.

(i) Revaluations of non-current assets

Subsequent to initial recognition as assets, non-current physical assets are measured at either cost or deprival value. Deprival value is deemed to approximate fair value, being the amounts the Department would have to forgo if it were deprived of those assets. Revaluations are made with sufficient regularity to ensure that the carrying amount of each asset does not differ materially from its fair value at the reporting date. Annual assessments will be made, supplemented by independent assessments, at least every five years. Revaluations are conducted in accordance with Department of Treasury and Finance Guidelines Recognition and Valuation of Non-Current Physical Assets (January 1995).

Revaluation increments are credited directly to the asset revaluation reserve, except that, to the extent that an increment reverses a revaluation decrement in respect of that class of asset previously recognised as an expense in net result, the increment is recognised immediately as revenue in net result.

Revaluation decrements are recognised immediately as expenses in the net result, except that, to the extent that a credit balance exists in the asset revaluation reserve in respect of the same class of assets, they are debited directly to the asset revaluation reserve.

Revaluation increments and decrements are offset against one another within a class of non-current assets.

All permanent roads were revalued at 30 June 2001 at their current replacement cost written down based on the condition of the roads which determined their remaining useful life. Roads are depreciated over a useful life of 80 years.

Crown Land was revalued at 30 June 1998, with a number of parcels revalued at 30 June 1999, June 2000, and 30 June 2001.

Land used for operational purposes was revalued at 30 June 1996. Some Buildings and Structures were revalued at 30 June 1999, with additional Buildings and Structures revalued at 30 June 2000, and 30 June 2001. An item of artwork in Other assets was revalued at 30 June 2001.

Current cost in relation to an asset, means the lowest cost at which the gross service potential of that asset could currently be obtained in the normal course of operations.

88 Natural Resources and Environment Annual Report FINANCIALS

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Self-Generating and Regenerating Assets The Department recognises productive trees in commercial native forests and breeding livestock as self-generating and regenerating assets. These natural resource assets are revalued at their net market value at 30 June each year. For productive trees net market value is calculated as the net present value of future cash flows expected to be generated from the produce discounted at a current market-determined rate. Net market value for breeding livestock is the amount that could be expected to be received from the disposal of the livestock after deducting the costs expected to be incurred in realising the proceeds from their disposal. Increases/decreases in the net market value from the previous valuation is recognised as revenue/expense in the statement of financial performance.

(j) Other financial assets – Investments

Investments in unlisted securities are recognised at cost and dividend income is recognised in the statement of financial performance when receivable.

Shares held by the Department are to satisfy membership requirements to allow the Department to sell primary produce to marketing cooperatives.

(k) Depreciation of property, plant and equipment

Depreciation is calculated on a straight line basis to write off the net cost or revalued amount of each item of property, plant and equipment (excluding land) over its expected useful life to the Department. Estimates of remaining useful lives are made on a regular basis for all assets, with annual reassessments for major items.

Capitalised expenditure on intangible assets, such as databases and software, is amortised on a straight line basis over an estimated useful life of 10 years.

The expected useful lives are as follows: Buildings and Structures 5 to 40 years Plant, Machinery and Equipment 3 to 20 years Roads Infrastructure 80 years Software 10 years

Where items of plant and equipment have separately identifiable components which are subject to regular replacement, those components are assigned useful lives distinct from the item of plant and equipment to which they relate.

Other assets which include items of historical, cultural or environmental significance are not depreciated.

Major spares purchased specifically for particular plant are capitalised and depreciated on the same basis as the plant to which they relate.

(l) Leasehold improvements

The cost of improvements to or on leasehold properties is amortised over the unexpired period of the lease or the estimated useful life of the improvement to the Department, whichever is the shorter. Leasehold improvements held at the reporting date are being amortised over 10 years.

(m) Leased non-current assets

A distinction is made between finance leases which effectively transfer from the lessor to the lessee substantially all the risks and benefits incident to ownership of leased non-current assets, and operating leases under which the lessor effectively retains substantially all such risks and benefits.

Finance leases are capitalised. A lease asset and liability are established at the present value of minimum lease payments. Lease payments are allocated between the principal component of the lease liability and the interest expense.

The lease asset is amortised on a straight line basis over the term of the lease, or where it is likely that the Department will obtain ownership of the asset, the expected useful life of the asset to the Department. Lease assets held at the reporting date are being amortised over periods ranging from 5 to 15 years.

Natural Resources and Environment Annual Report 89 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2001 (CONTINUED)

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Incentives received on entering into operating leases are recognised as liabilities. Lease payments are allocated between interest (calculated by applying the interest rate implicit in the lease to the outstanding amount of the liability), rental expense and reduction of the liability.

The present value of future payments for surplus leased space under non-cancellable operating leases is recognised as a liability, net of sub-leasing revenue, in the period in which it is determined that the leased space will be of no future benefit to the consolidated entity. Each lease payment is allocated between the liability and finance charge.

Other operating lease payments are charged to the statement of financial performance in the periods in which they are incurred, as this represents the pattern of benefits derived from the leased assets.

(n) Non-current assets constructed by the Department

The cost of non-current assets constructed by the Department includes the cost of all materials used in construction, direct labour on the project, borrowing costs incurred during construction and an appropriate proportion of variable and fixed overhead.

Borrowing costs included in the cost of non-current assets are those costs that would have been avoided if the expenditure on the construction of the assets had not been made. Borrowing costs incurred while active construction is interrupted for extended periods are recognised as expenses.

(o) Trade and other creditors

These amounts represent liabilities for goods and services provided to the Department prior to the end of the financial year and which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

(p) Interest bearing liabilities

Loans are carried at historical cost. Interest is accrued over the period it becomes due and is recorded as part of other creditors.

(q) Maintenance and repairs

Plant of the Department is required to be overhauled on a regular basis. This is managed as part of an ongoing major cyclical maintenance program. The costs of this maintenance are charged as expenses as incurred, except where they relate to the replacement of a component of an asset, in which case the costs are capitalised and depreciated in accordance with note 1(k). Other routine operating maintenance, repair costs and minor renewals are also charged as expenses as incurred.

(r) Goods and services tax systems changes

Costs incurred to update existing systems or to design, develop and implement new systems to deal with the GST are charged as expenses as incurred, except where they result in an enhancement of future economic benefits and are recognised as an asset.

(s) Employee entitlements

(i) Wages, salaries and annual leave Liabilities for wages, salaries and annual leave (including oncosts) are recognised, and are measured as the amount unpaid at the reporting date at current pay rates in respect of employees' services up to that date.

(ii) Long service leave A liability for long service leave (including oncosts) is recognised, and is measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using interest rates on national Government guaranteed securities with terms to maturity that match, as closely as possible, the estimated future cash outflows. Long service leave liability is calculated in months and takes into account departmental service, prior service and leave without pay. The current liability for long service leave is the amount expected to be paid in the next 12 months on the basis of leave taken in the past.

(iii) Superannuation The amount charged to the statement of financial performance in respect of superannuation represents the contributions made by the Department to the superannuation fund. No liability is shown for superannuation in the statement of financial position as the liability is assumed by the State Government. The current year employer contribution for superannuation payments on behalf of the Department’s employees is disclosed in Note 25.

90 Natural Resources and Environment Annual Report FINANCIALS

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(t) Intangible assets and expenditure carried forward

(i) Software Significant costs associated with the acquisition or development of computer software are capitalised and amortised on a straight line basis over the periods of the expected benefit, which is considered 10 years.

(ii) Web site costs Costs in relation to web sites controlled by the Department are charged as expenses in the period in which they are incurred unless they relate to the acquisition of an asset, in which case they are capitalised and amortised over their period of expected benefit. Generally, costs in relation to feasibility studies during the planning phase of a web site, and ongoing costs of maintenance during the operating phase are considered to be expenses. Costs incurred in building or enhancing a web site, to the extent that they represent probable future economic benefits controlled by the Department that can be reliably measured, are capitalised as an asset and amortised over the period of the expected benefits which vary from 3 to 5 years.

(u) Inventories

Stores, work in progress and finished goods are stated at the lower of cost and net realisable value. Cost is based on the first-in, first-out principle and includes expenditure incurred in acquiring the inventories and bringing them to their existing condition. Net realisable value is determined on the basis of the Department’s normal selling pattern. Expenses associated with marketing, selling and distribution are deducted to determine net realisable value.

Inventories of seed and felled logs in dumps are valued at net market value, or cost where an active and liquid market does not exist. Grown natural resources such as grain, feed, vegetable and fruit crops not yet harvested, and extractive resources not yet extracted are not recognised in the Department’s financial statements as no reliable measure, or identifiable value can be assigned to them.

(v) Capital asset charge

The capital asset charge is imposed by the Department of Treasury and Finance and represents the opportunity cost of capital invested in the non- current physical assets used in the provision of outputs. The charge is calculated on the carrying amount of non-current physical assets (excluding land and intangible assets).

(w) Resources provided and received free of charge

Contributions of resources and resources provided free of charge are recognised at their fair value. Contributions in the form of services are only recognised when a fair value can be reliably determined and the services would have been purchased if not donated. The fair value of resources received free of charge is the carrying amount of the resources provided by the transferor at the time of the transfer.

(x) Changes in accounting policy

Changes in accounting policies during 2000 - 2001 and their financial impact are as follows:

Reclassification of controlled and administered assets; Department of Treasury and Finance reclassified receipts supported by a Financial Management Act 1994 Section 29 appropriation, commonly referred to as ‘annotated’ receipts, from controlled revenue to administered revenue. Administered revenue now also includes Commonwealth Specific Purpose Payments to the Department, revenues from the Rural Development Research Corporation, and other revenues where a Section 29 appropriation has been approved by the State Treasurer. Department of Treasury and Finance also approved the transfer of capital grants funds from administered to controlled. As a result, a number of revenues and expenses, and assets and liabilities are reported differently at 30 June 2001 than at 30 June 2000.

The financial impact of these changes is a net transfer of opening accumulated surplus at 1 July 2000 of $8.249 million from controlled to administered to reflect the net movements of assets and retained earnings that were reclassified at this date. Assets transferred from controlled to administered include cash assets $0.107 million and net debtors $3.811 million. Liabilities transferred from controlled to administered includes unearned revenue $0.090 million. Liabilities transferred from administered to controlled included payables $0.565 million.

Retained earnings from 1999 - 2000 and prior years of $3.856 million was also transferred from controlled to administered. In addition Commonwealth Specific Purpose Payments and other revenues of $46.345 million and $45.565 million respectively are included in ‘Other Revenue’ in Note 26 Administered items. An amount of $85.696 million is included in the administered expense item ‘Transfers to Consolidated Revenue’ representing the aggregated amount of the receipts collected and transferred to consolidated revenue, while an amount of $0.184 million for doubtful debts associated with outstanding debts relating to these revenues is included in ‘Other expenses’.

Natural Resources and Environment Annual Report 91 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2001 (CONTINUED)

NOTE 2. OUTPUT GROUPS OF THE DEPARTMENT

Strategic Priorities, Output Groups and Key Government Outcomes of the Department

The Government’s strategic priorities for natural resources and the environment in Victoria are: • Improved Biodiversity, and Natural and Cultural Resources • Growth of Sustainable Land and Resource Industries and Markets • An Informed and Resourceful Victorian Community

The Department delivers these strategic priorities through nine Output Groups that have been structured to meet the key government outcomes embodied in the strategic priorities.

A description of each output group of the Department during the year ended 30 June 2001, together with the outcomes expected of that group are summarised below.

Output Group 401: Minerals and Petroleum

Description of output group The stimulation of the generation of wealth through the sustainable development of Victoria’s earth resources by facilitating increased investment in exploration for minerals and petroleum leading to: • the establishment of new producing operations; • competitive sources of gas supply; and • extractive industry products

while ensuring that community expectations for health, safety and environmental management are met.

Outcome expected Increased investment in natural resource based industries, generating wealth through the sustainable development of industry and natural resources.

Output Group 402: Forest Management

Description of output group Forest Management aims to achieve sustainable management of State forests for a range of productive, conservation and recreation uses.

Outcome expected Generating wealth through the sustainable development of industry and natural resources.

Output Group 403: Fire Management

Description of output group Services to ensure integrated management of fire and fire related activities on public land for the purpose of protecting human life, property, assets and environmental values, and for sustaining biological diversity.

Outcome expected Protecting the State’s natural resources for the long-term benefit of all Victorians.

Output Group 404: Fisheries

Description of output group To manage fisheries and aquatic ecosystems sustainably and for the optimal benefit of the community, and with stakeholder support and participation.

Outcome expected Sustainable development of Victoria’s regional, commercial, recreational and aquaculture fishing industries and management of Victoria’s marine and freshwater fish resources.

92 Natural Resources and Environment Annual Report FINANCIALS

NOTE 2. OUTPUT GROUPS OF THE DEPARTMENT (CONTINUED)

Output Group 415: Land Management and Information

Description of output group Generating wealth through effective land management and by providing integrated, accessible, authoritative and coordinated land information and definition systems which facilitate land-related transactions. Management of the State’s interest in Crown land to ensure natural resources are protected.

Outcomes expected • Generate wealth by improved efficiencies in land management and land-related transactions and improved land and resources information for Victoria; and • Protect the State’s natural resources and the environment.

Output Group 416: Conservation and Recreation

Description of output group Integrated services which deliver key apsects of the Government’s conservation and recreation policy agenda to ensure Victoria’s natural assets are enjoyed by both current and future generations. In particular, assisting land managers to maintain and improve biodiversity conservation, management of the parks and reserves system, local ports, coastal reserves and the Alpine resorts, and provision of opportunities for recreation, tourism and environmental education and research.

Outcomes expected • Protecting the State’s natural resources for the long term benefit of all Victorians; • Generating wealth through the sustainable development of industry and natural resources; and • Improving the quality of life for all Victorians.

Output Group 417: Agriculture

Description of output group Delivery of strategic services to the agriculture and food sector that support the revitalising of rural and regional Victoria.

Services include pest, disease and disaster management, product integrity and quality assurance, chemical residue risk management, animal welfare protection, market and trade development, business and value chain facilitation, land and natural resource management systems, research and development (enabling technologies), on-farm management programs, industry training and skills development and information services.

These services address key growth, environmental and social challenges across the agriculture “value chain” from natural resource management, farm production, food processing through to food quality for consumers.

Outcome expected Revitalising rural and regional Victoria through: • sustained food and agriculture export growth by investing in key knowledge and technology capabilities that drive growth, resulting in significant new investment and employment; • sustainable use of Victoria’s natural resources by dramatically improving the information needed to sustain the productive potential and quality of natural resources, combined with innovative policy mechanisms to protect the environment; and • stronger and more resilient rural communities by more effectively engaging people in anticipating, responding to and driving change.

Natural Resources and Environment Annual Report 93 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2001 (CONTINUED)

NOTE 2. OUTPUT GROUPS OF THE DEPARTMENT (CONTINUED)

Output Group 418: Catchment and Water

Description of output group Using a strong partnership approach involving communities, statutory authorities and government to achieve healthy rivers and catchments which protect and enhance the environment while supporting sustainable and more productive resource industries and regional communities.

Outcomes expected • Healthier eco-systems and catchments; • Clean, healthy and safe food and water for the community; • Stronger and more vibrant rural communities; and • Increased wealth and investment in land and natural resource based industries.

Output Group 419: Aboriginal Reconciliation and Respect

Description of output group In partnership with the Aboriginal peoples of Victoria, the development of strategies and the provision of programs that aim to: • support Aboriginal aspirations for land, culture and natural resources; • heal the past; • build an Aboriginal future through economic, social and community development; and • improve the relationship between Aboriginal peoples, the government and the wider community.

Outcomes expected • Restoration of Indigenous family and community well being; • Reconciliation between Indigenous and non Indigenous Victorians; • Improved relations between the Aboriginal community and the Government and improved understanding of the ‘needs’ of the Aboriginal community, through a “whole-of government” approach to Aboriginal affairs; • Redress of economic problems; • Redress of social problems, including the implementation of a comprehensive State response to the recommendations of the Human Rights and Equal Opportunity Commission report “Bringing Them Home” and the development and implementation of strategies to address the dispossession of Aboriginal land and culture; • Recognition of Indigenous peoples as the original owners and custodians of our land and achieving a fair and equitable system of land rights; • Contribution to improved outcomes for Aboriginal Victorians in the areas of health, education and justice; • Improved awareness and exercise of civil, legal and political rights; and • Assisting Aboriginal organisations to address the needs of their communities by providing financial resources. :

94 Natural Resources and Environment Annual Report FINANCIALS

Changes in Outputs An output related to aboriginal affairs was transferred from the Department of Human Services to the Department as a consequence of a restructuring of administrative arrangements on 1 July 2000 and has been included as Output Group 419 “Aboriginal Reconciliation and Respect”.

An output related to energy policy was transferred from the Department of Treasury and Finance to the Department as a consequence of a restructuring of administrative arrangements on 1 July 2000.

In addition, assets and liabilities were transferred to the Department of State and Regional Development at their book value as a consequence of a restructuring of administrative arrangements on 18 November 2000. These assets and liabilities were part of Output Group 419 “Aboriginal Reconciliation and Respect” and related to the Koori Business Network.

In addition to departmental operations, the Department undertakes activities on behalf of the Government. These administered transactions are reported in the notes to the financial statements. These administered transactions give rise to revenues, expenses, assets and liabilities and are determined on an accruals basis. Administered revenues include fees from regulatory bodies. Administered liabilities include Government expenses incurred and expected to be paid during the 2000-2001 financial year. Administered assets include Government revenues earned and expected to be collected during the 2000- 2001 financial year.

Departmental and administered transactions are disclosed by class and by output group in the following schedules:

Natural Resources and Environment Annual Report 95 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2001 (CONTINUED)

OUTPUT GROUPS SCHEDULE – CONTROLLED REVENUE AND EXPENSES FOR THE REPORTING PERIOD ENDED 30 JUNE 2001

Output Group 401 Output Group 402 Output Group 403 Output Group 404 Minerals and Petroleum Forest Management Fire Management Fisheries

2001 2000 2001 2000 2001 2000 2001 2000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Revenue

Output appropriation 14,269 19,362 138,280 124,202 62,104 57,127 27,914 31,830 Additions to net assets 1,239 2,366 (480) 2 242 3,032 (238) 1,708 Resources received free of charge - 85 7 151 1 154 1 52 Other revenue* 230 188 740 16,770 3,955 1,287 2,139 3,105 Total revenue 15,738 22,001 138,547 141,125 66,302 61,600 29,816 36,695 Expenses

Employee benefits (8,406) (8,119) (29,893) (26,836) (23,897) (22,906) (13,961) (13,281) General Expenses (4,107) (4,124) (69,989) (56,266) (30,625) (27,531) (9,204) (17,811) Resources provided free of charge (7) (10) (8) (2) (10) (44) (1) (7) Depreciation & amortisation (325) (493) (2,640) (2,829) (2,746) (2,714) (772) (724) Transfer payments (1,036) (6,713) (3,380) (183) (1,755) (80) (2,349) (1,222) Capital asset charge (286) (288) (35,261) (33,082) (5,569) (4,976) (744) (664) Transfers to consolidated revenue - - - (169) - - - - Total expenses (14,167) (19,747) (141,171) (119,367) (64,602) (58,251) (27,031) (33,709) Net increase/(decrease) in asset revaluation reserve (10) 13 1,439 11.403 (235) (46,635) (17) 23 Net recognition of assets/liabilities - 1,036 - 4,232 - (2,258) - 112 Total changes in equity 1,561 3,303 (1,185) 26,001 1,465 (45,544) 2,768 3,121

* In 2000 these revenues were net of receipts forwarded to the Consolidated Fund.

OUTPUT GROUPS SCHEDULE – CONTROLLED ASSETS AND LIABILITIES AS AT 30 JUNE 2001

Output Group 401 Output Group 402 Output Group 403 Output Group 404 Minerals and Petroleum Forest Management Fire Management Fisheries

2001 2000 2001 2000 2001 2000 2001 2000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Assets

Current 2,416 2,828 19,295 21,830 10,576 10,636 6,810 4,756 Non current 16,973 15,459 1,035,070 1,033,651 77,416 75,174 10,747 10,700 Self-generating and Regenerating assets - - 308,948 311,619 - - - - Total assets 19,389 18,287 1,363,313 1,367,100 87,992 85,810 17,557 15,456 Liabilities Current (1,684) (1,641) (9,018) (5,872) (3,449) (3,224) (2,267) (2,081) Non current (3,958) (3,789) (7,242) (6,530) (3,735) (3,284) (3,375) (3,020) Total liabilities (5,642) (5,430) (16,260) (12,402) (7,184) (6,508) (5,642) (5,101) Net assets/(liabilities) 13,747 12,857 1,347,053 1,354,698 80,808 79,302 11,915 10,355

96 Natural Resources and Environment Annual Report FINANCIALS

Output Group 415 Output Group 416 Output Group 417 Output Group 418 Output Group 419 Total Land Management Conservation Agriculture Catchment Aboriginal Reconciliation and Information and Recreation and Water and Respect

2001 2000 2001 2000 2001 2000 2001 2000 2001 2000 2001 2000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

99,591 100,913 106,508 109,024 153,902 142,223 169,344 153,109 11,229 - 783,141 737,790 14,524 3,941 (4,613) 9,010 2,209 1,310 (367) 757 (2) - 12,514 22,126 2,465 132 258 132 2 283 1 352 434 - 3,169 1,341 16,703 6,388 74,428 75,373 24,155 22,572 2,503 3,825 126 - 124,979 129,508 133,283 111,374 176,581 193,539 180,268 166,388 171,481 158,043 11,787 - 923,803 890,765

(44,009) (41,587) (18,042) (19,268) (82,812) (76,442) (40,942) (39,229) (2,855) - (264,817) (247,668) (47,075) (58,926) (19,217) (17,307) (68,985) (27,926) (56,957) (52,372) (1,824) - (307,983) (292,263) (7,157) (51) (869) (18) (25) (1,409) (15) (251) (694) - (8,786) (1,792) (6,869) (2,195) (6,318) (5,626) (5,995) (6,079) (1,070) (1,426) (147) - (26,882) (22,086) (9,932) (3,653) (125,624) (121,677) (12,555) (15,004) (80,480) (74,451) (3,705) - (240,816) (222,983) (918) (804) (13,638) (13,677) (9,055) (8,897) (932) (933) (36) - (66,439) (63,321) - - - - - (181) - - - - - (350) (115,960) (107,216) (183,708) (177,573) (179,427) (165,938) (180,396) (168,662) (9,261) - (915,723) (850,463) (2,352) 43,528 (2,615) 140,983 1,761 132 (62) 77 - - (2,091) 149,524 - 108 - 36,210 - (9,307) - 223 - - - 30,356 14,971 47,794 (9,742) 193,159 2,602 (8,725) (8,977) (10,319) 2,526 - 5,989 220,182

Output Group 415 Output Group 416 Output Group 417 Output Group 418 Output Group 419 Total Land Management Conservation Agriculture Catchment Aboriginal Reconciliation and Information and Recreation and Water and Respect

2001 2000 2001 2000 2001 2000 2001 2000 2001 2000 2001 2000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

31,807 28,604 34,117 35,750 40,873 40,984 18,650 19,554 801 - 165,345 164,942 562,694 556,173 677,926 684,610 151,412 144,644 12,416 13,107 1,993 - 2,546,647 2,533,518 - - - - 2,218 1,769 - - - - 311,166 313,388 594,501 584,777 712,043 720,360 194,503 187,397 31,066 32,661 2,794 - 3,023,158 3,011,848

(7,389) (7,519) (3,055) (3,662) (14,162) (13,142) (11,123) (8,106) (666) - (52,813) (45,247) (13,682) (12,757) (4,880) (4,461) (27,395) (25,290) (10,473) (9,646) (41) - (74,781) (68,777) (21,071) (20,276) (7,935) (8,123) (41,557) (38,432) (21,596) (17,752) (707) - (127,594) (114,024) 573,430 564,501 704,108 712,237 152,946 148,965 9,470 14,909 2,087 - 2,895,564 2,897,824

Natural Resources and Environment Annual Report 97 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2001 (CONTINUED)

NOTE 3. RESTRUCTURING OF ADMINISTRATIVE ARRANGEMENTS

The Department of Human Services has not recognised any expenses and revenues during the reporting period in respect of changes in the “Aboriginal Reconciliation and Respect” output. The total revenues and expenses recognised by the Department of Natural Resources and Environment in relation to this output for the year ended 30 June 2001 were $11,789,518 and $9,260,427 respectively.

Assets assumed by the Department as a result of the assumption of these outputs are recognised in the statement of financial position at the carrying amount of those assets in the transferor’s (Department of Human Services) statement of financial position immediately prior to the transfer. The transfer of assets and liabilities were treated as revenue and expenses respectively by the Department in relation to the net assets transferred from the Department of Human Services.

The Department of Treasury and Finance has not recognised expenses and revenues during the reporting period in respect of changes in the outputs relating to the Energy Policy group. The total revenues and expenses recognised by the Department of Natural Resources and Environment in relation to this output for the year ended 30 June 2001 were $10,448,541 and $10,444,660 respectively.

Assets assumed by the Department as a result of the assumption of these outputs are recognised in the statement of financial position at the carrying amount of those assets in the transferor’s (Department of Treasury and Finance) statement of financial position immediately prior to the transfer. The transfer of assets and liabilities were treated as revenue and expenses respectively by the Department in relation to the net assets transferred from the Department of Treasury and Finance.

2001 2001 2000 2000 $’000 $’000 $’000 $’000

In respect of the activities assumed, the following assets and liabilities were recognised: Output – Aboriginal Reconciliation and Respect

Assets

Plant and Equipment 434 -

Liabilities

Employee Entitlements (625) (191) - - Program – Energy Policy

Assets

Plant and Equipment 8 -

Liabilities

Employee Entitlements (180) (172) - -

In respect of the activities relinquished, the following assets and liabilities were transferred: Output – Aboriginal Reconciliation and Respect

Assets

Plant and Equipment 69 -

Liabilities

Employee Entitlements (3) 66 - -

(429) -

98 Natural Resources and Environment Annual Report FINANCIALS

NOTE 4. REVENUE

Operating Non-Operating 2001 2000 2001 2000 $’000 $’000 $’000 $’000

Revenue by source

(a) Revenue from government

Outputs appropriations 783,141 737,790 - -

Additions to net assets appropriations 12,514 22,126 - -

Resources received free of charge - - 3,169 1,341

795,655 759,916 3,169 1,341

(b) Revenue from other parties

User charges and fees 24,547 58,593 - -

Special purpose grants - 46,558 - -

Other revenues 93,024 90,740 7,408 14,741

117,571 195,891 7,408 14,741

Annotated receipts forwarded to the Consolidated Fund - (88,763) - -

NOTE 5. SUMMARY OF COMPLIANCE WITH ANNUAL PARLIAMENTARY APPROPRIATIONS

(a) Summary of compliance with annual parliamentary appropriations

The following table discloses the details of the various Parliamentary Appropriations received by the Department for the year. In accordance with Accrual Output-based Management procedures ‘Provision for outputs’ and ‘Additions to net assets’ are disclosed as ‘controlled’ activities of the Department. Administered transactions are those that are undertaken on behalf of the State over which the Department has no control or discretion.

Natural Resources and Environment Annual Report 99 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2001 (CONTINUED) 17 121 279 8,805 6,942 ariance 22,295 38,163 ($'000) 10,241 71,412 60,875 V 1,322 14,625 22,126 15,161 ($'000) Applied 17,566 12,514 737,790 789,702 814,543 783,141 opriations Appr otal T 1,601 23,430 29,068 15,282 ($'000) 17,583 22,755 760,085 827,865 Authority 885,955 844,016 arliamentary P ------2,500 2,500 ($'000) Section 35 - 121 5,754 7,281 5,884 5,768 6,664 18,919 ($'000) 22,682 10,129 Section 32 ACT 1994 - - - FINANCIAL 0 MANAGEMENT 2,242 ($'000) (2,242) 23,505 (5,000) (14,832) (13,673) Section 30 - - - - 4,544 2,200 84,556 89,100 ($'000) 91,910 89,710 Section 29 ------TIVE ($'000) ACT 1983 10,300 10,300 Section 4 ARRANGEMENTS ADMINISTRA ------6,518 6,518 ($'000) Section 3(2) - - - - ACT er TION om 200 fr 5,778 48,313 48,513 easur ($'000) 42,148 36,370 r ayments T P Advance to APPROPRIA Annual 17,676 19,285 15,282 ($'000) 17,462 10,665 21,786 612,572 664,815 opriation 721,415 671,502 Appr ovision of outputs ayments made on behalf of the State otal NOTE 5. SUMMARY OF COMPLIANCE WITH ANNUAL PARLIAMENTARY APPROPRIATIONS (CONTINUED) As at 30 June 2001 As at 30 June 2000 (comparatives) State Contribution under the Administered P Additions to net assets Murray Darling Basin Act 1993 T Controlled Pr

100 Natural Resources and Environment Annual Report FINANCIALS

NOTE 5. SUMMARY OF COMPLIANCE WITH ANNUAL PARLIAMENTARY APPROPRIATIONS (CONTINUED)

Provisions of Outputs

The major areas contributing to the variance of $60.875 million in provision of outputs appropriations were: • Delays by the Commonwealth in approving projects under the Natural Heritage Trust resulted in many having to be carried over for completion next financial year. • Delays were experienced in the commencement of several agricultural research projects due to contract negotiation difficulties and staff availability. These externally funded projects will be completed during 2001-2002. • A number of major projects in and around Port Phillip Bay have been held up due to planning issues and difficulties in site conditions. These include the Hampton Pier, Limeburners Boat Ramp, Williamstown and Rosebud Foreshore Plans, and the redevelopment of Queenscliff Harbour. Funding for these projects has been carried over to enable completion next financial year. • Funding provided for restoring environmental flows to the Snowy River has been carried over to next financial year to continue the planning and construction of the Woorinen Pipeline. • Funding provided by the Commonwealth for the Forest Industry Structural Adjustment Program has not been utilised due to delays in business exit approvals, rescheduling assistance and industry development assistance. This funding will be carried over to enable payments to be made during 2001-2002. • The development of the Victorian Greenhouse Strategy has involved extensive public and stakeholder consultation, along with detailed technical and economic analysis of options. Consequently, decisions on allocations have been held over until 2001-2002.

Additions to net assets

The major areas contributing to the variance of $10.241 million in additions to net assets appropriations were: • The redevelopment of the Marine and Freshwater Research Institute at Queenscliff has experienced further delays in gaining EPA approval for a sea water abstraction licence. This has impacted on the ability of the Department to commence the project. In addition, considerable community consultation has been conducted which has also impacted on the projects expected completion date. Funding has been approved for carry forward to 2001-2002. • The project to consolidate the operations of the Land Victoria Division of the Department was delayed by six months, due to the need to identify a new location following unsuccessful lease negotiations. This funding will be carried over to 2001-2002. • Delays were experienced in the redevelopment of two Agricultural Research Institutes at Horsham and Mildura. These were caused by the need to purchase additional land and co-location issues with the local Catchment Management Authority. These issues have now been resolved and it is expected that both projects will be completed during 2001-2002. • The construction of the Centre for Tree Technology at Creswick has been rescheduled due to difficulties obtaining town planning permits. This required a number of redesigns to be completed delaying the commencement of construction work. Funding has been approved for carry over to enable completion of the project during 2001-2002.

Natural Resources and Environment Annual Report 101 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2001 (CONTINUED)

NOTE 6. RESULT FOR THE REPORTING PERIOD

2001 2000 $’000 $’000

Net gains/losses and expenses

Result from ordinary activities includes the following specific net gains/losses and expenses:

Net gains / losses

Net gain on disposal Property, plant and equipment 1,015 5,344

Expenses

Depreciation

Buildings and structures 4,283 4,166

Plant, machinery and equipment 14,929 15,108

Roads infrastructure 2,931 2,020

Total depreciation 22,143 21,294

Amortisation:

Buildings leasehold improvements 191 190

Software 4,548 602

Total amortisation 4,739 792

Total depreciation and amortisation 26,882 22,086

Charges against assets

Bad and doubtful debts 154 140

Borrowing costs expense

Interest and finance charges 399 453

Other provisions

Employee entitlements 88,194 81,433

NOTE 7. CASH ASSETS

2001 2000 $’000 $’000

Cash at bank and on hand (9,965) (7,218)

Funds held in trust 59,331 60,159

Short term deposits 10,534 604

59,900 53,545 Short term deposits

The deposits are bearing floating interest rates between 4.60% and 5.85% (2000 – 6.11% and 6.26%)

102 Natural Resources and Environment Annual Report FINANCIALS

NOTE 8. RECEIVABLES

2001 2000 $’000 $’000

Current

Amounts owing from Victorian Government 58,168 65,010

Trade debtors 10,264 11,124

Less: provision for doubtful debts (23) (690)

68,409 75,444

Goods and services tax recoverable 9,078 577

Other debtors 91 132

77,578 76,153

Other debtors

These amounts generally arise from transactions outside the usual operating activities of the Department. Interest may be charged at commercial rates where the terms of repayment exceed six months. Collateral is not normally obtained.

NOTE 9. INVENTORIES

2001 2000 $’000 $’000

Current

Stock on hand of consumables - at cost

Weedicides 452 443

Other stores and materials 2,605 2,460

Seed bank 2,258 2,271

5,315 5,174

The value of seed in the seed bank at 30 June was calculated on the basis of the cost of collection.

Stock on hand of items pending sale 981 857

Publications – at cost 975 594

Logs in dumps – at valuation 1,956 1,451

7,271 6,625

Logs in dumps were valued at their net market value.

Aggregate carrying amount of inventories

Current 7,271 6,625

Natural Resources and Environment Annual Report 103 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2001 (CONTINUED)

NOTE 10. OTHER FINANCIAL ASSETS

2001 2000 $’000 $’000

Funds invested with Treasury Corporation of Victoria 15,300 26,720 Non-traded Investments

Shares in other entities - at cost 6 6

15,306 26,726

Funds invested with Treasury Corporation of Victoria

Investments with Treasury Corporation of Victoria include funds from the Parks and Reserves Trust Fund and various livestock compensation trust funds, with interest earned accruing to these funds respectively.

Shares in other entities

The Department holds 20,000 fully paid unlisted ordinary shares at 25 cents each share and 5,000 fully paid listed ordinary shares at 20 cents each in SPC Holdings Limited. The shares are held for the purposes of qualifying for membership to sell fruit to SPC Limited, and are not held for trading/investment purposes.

104 Natural Resources and Environment Annual Report FINANCIALS

NOTE 11. PROPERTY, PLANT AND EQUIPMENT

2001 2000 $’000 $’000

Land Crown Land at independent valuation 550,778 568,222

National Parks

At cost 2,728 5,708

At independent valuation 2000 354,504 353,570

357,232 359,278

State Forests

At cost 5,261 5,059

At independent valuation 1999 898,407 898,407

903,668 903,466

Conservation reserves

At cost 3,019 2,029

At independent valuation 2001 123,637 118,187

126,656 120,216

Land used for operational purposes

At cost 180 -

At independent valuation 1999 36,041 36,241

36,221 36,241

Total land 1,974,555 1,987,423 Buildings and structures

At cost 47,556 38,132

At independent valuation 138,371 142,025

Less accumulated depreciation (20,740) (17,926)

165,187 162,231

Buildings and structures - construction in progress 47,917 47,039

Total buildings and structures 213,104 209,270 Roads

At cost 268 -

At valuation 2001 228,149 227,800

Less accumulated depreciation (5,086) (2,155)

223,331 225,645

Roads - construction in progress 7,618 10,028

Total roads 230,949 235,673 Plant and equipment

At cost 158,575 148,188

Less accumulated depreciation (82,366) (73,693)

Total plant and equipment 76,209 74,495

2,494,817 2,506,861

Natural Resources and Environment Annual Report 105 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2001 (CONTINUED)

NOTE 11. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

Reconciliations

Reconciliations of the carrying amounts of each class of land at the beginning and end of the current and previous financial year are set out below.

Crown National State Conserv. Land used Buildings Roads Plant Total Land Parks Forests Reserves for depart. and and operations Structures Equipment $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

2001

Carrying amount at start of year 568,222 359,278 903,466 120,216 36,241 209,270 235,673 74,495 2,506,861

Additions - - 202 741 - 7,432 - 17,316 25,691

Disposals (2,449) - - - (20) - - (1,527) (3,996)

Reclassification of Crown land to land held for sale (refer note 13 ‘Other assets’) (10,286) ------(10,286)

Net transfers free of charge (4,686) (865) - 250 - - - 268 (5,033)

Revaluation increments/(decrements) 566 - - - - 1,440 (1,293) - 713

Recognition/(derecognition) of assets (589) (1,181) - 5,449 - (564) (500) 586 3,201

Depreciation/amortisation expense - - - - - (4,474) (2,931) (14,929) (22,334)

Carrying amount at end of year 550,778 357,232 903,668 126,656 36,221 213,104 230,949 76,209 2,494,817

2000

Carrying amount at start of year 530,075 210,720 903,457 90,128 36,390 208,323 262,152 76,658 2,317,903

Additions - 3,867 9 1,700 - 5,967 6,067 13,091 30,701

Disposals (5,299) - - - (149) (1,139) - (146) (6,733)

Net transfers free of charge ------

Revaluation increments/(decrements) 43,446 136,129 - - - 475 (30,526) - 149,524

Recognition of assets - 8,562 - 28,388 - - - - 36,950

Depreciation/amortisation expense - - - - - (4,356) (2,020) (15,108) (21,484)

Carrying amount at end of year 568,222 359,278 903,466 120,216 36,241 209,270 235,673 74,495 2,506,861

106 Natural Resources and Environment Annual Report FINANCIALS

NOTE 11. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

Crown Land Crown Land has been valued by the Valuer-General at 30 June 1998, with a number of parcels revalued at 30 June 1999, 30 June 2000 and 30 June 2001, by applying an average valuation for broad area rural improved land (cropping and grazing) and unimproved land (bushland and water) for each parish and township in the State of Victoria. A number of on-site valuations were performed by the Valuer-General and statisticians from the Australian Bureau of Statistics (ABS) verified that the results confirmed the accuracy of the average parish and township values. Crown land vested or controlled by locally elected committees of management has been valued in accordance with the above principles, and included in the value of Crown Land.

National Parks, State Parks, Wilderness Parks and Other Parks The area of Public land set aside as National Parks, State Parks, Wilderness Parks and Other Parks under the National Parks Act 1975 comprise a diverse range of lands permanently reserved for the benefit of the public. The Valuer-General revalued all National Parks, State Parks, Wilderness Parks and Other Parks for the financial year ended 30 June 2000.

The method of valuation adopted under the ‘deprival value’ concept was ‘market value in use’. This methodology disregards the possible alternative use of the asset. Allowances were made in respect to sales evidence to allow the market evidence to be used as indicators of value. Other items considered were the restrictive nature of the use of the park land and the overall size of the land. No account was taken of the tourism, recreational, grazing, water catchment values or mining/quarrying potential that the Parks might have. No allowances were made for current or future claims for native title, disease or contamination issues.

State Forests State Forests includes land under commercial native forest areas which is recognised separately from the value of the productive trees. This land was revalued by the Valuer-General Victoria at 30 June 1999 in accordance with the principles of the ‘deprival value’ concept.

Land Conservation Reserves Land Conservation Reserves include land parcels set aside for conservation of specific ecosystems, animal and plant species, geomorphological features, significant historical and cultural qualities. The parcels were valued in three stages by the Valuer-General with stage one at 30 June 1999, stage two at 30 June 2000 and stage three at 30 June 2001 by using a sampling methodology agreed between the Valuer-General and the Australian Bureau of Statistics. A sample of the reserves were inspected and valued individually with the balance of values arrived at by desktop analysis. Valuations were determined in accordance with the ‘deprival value’ concept. No account was made for any additional or higher development potential. Any perceived heritage, conservation or environmental values inherent in the Reserves were disregarded. No allowances were made for current or future claims for native title, disease or contamination issues.

General The valuation methodology for Crown Land, National Parks and State Forests does not take into account the intrinsic, environmental or economic worth of the assets or any theoretical subdivision, additional development or clearing. Revaluations of land used for operational purposes were carried out by the Valuer- General Victoria in accordance with the ‘deprival value’ concept at 30 June 1996, with further parcels revalued for 30 June 1999.

Significant Buildings and Structures Buildings and structures are revalued every five years with buildings revalued in stages over three years and structures in stages over two years. Revaluations for buildings were carried out at 30 June 1996, 30 June 1998 and a 30 June 1999. Structures were revalued at 30 June 1995, 30 June 1996 and 30 June 1999.

Stage one of the structures revaluation was undertaken for 30 June 2000. A proportion of the significant buildings and structures across the State were revalued by the Valuer-General using the ‘depreciated replacement cost’ methodology under the ‘deprival value’ concept for the year ended 30 June 2000. Buildings at two of the Department’s operational sites were valued at 30 June 2001 by independent valuers using the same methodology.

Natural Resources and Environment Annual Report 107 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2001 (CONTINUED)

NOTE 12. INTANGIBLE ASSETS

2001 2000 $’000 $’000

Software 22,355 6,019

Less accumulated amortisation 6,787 2,238

Written down value 15,568 3,781

Software – development in progress 28,392 21,351

43,960 25,132

Intangible assets includes the capitalised costs at 30 June 2001 and the costs of developing the software associated with the Titles Automation Project, Victorian Initiative for Minerals and Petroleum, State Digital Map Base and the Integrated Fire Information System.

Reconciliations

Reconciliations of the carrying amounts of intangibles at the beginning and end of the current and previous financial year are set out below.

Carrying amount at start of year 25,132 15,511

Additions 16,336 10,223

Amortisation expense (4,548) (602)

Recognition of the costs previously expensed 7,040 -

Carrying amount at end of year 43,960 25,132

NOTE 13. OTHER ASSETS

2001 2000 $’000 $’000

Current

Land held for sale – at carrying amount 4,002 - Non-current

Land held for sale - at carrying amount 6,284 -

Other 1,586 1,525

7,870 1,525

Land held for sale represents the carrying amount of Crown land deemed surplus to the needs of the State, and is reported for the first time at 30 June 2001. As Crown land is unalienated from the Crown it does not have a cost of acquisition. No development costs have been incurred in preparing this land for its sale.

Other assets comprise items deemed worthy of preservation because of their historical, cultural or environmental significance.

Valuation of other assets

With the exception of land held for sale reported at its carrying amount, the basis of valuation of other assets is net realisable value. The latest revaluation at 30 June 2001 was based on independent assessment.

Aggregate carrying amount of other assets

Current 4,002 -

Non-current 7,870 1,525

11,872 1,525

108 Natural Resources and Environment Annual Report FINANCIALS

NOTE 13. OTHER ASSETS (CONTINUED)

2001 2000 $’000 $’000

Reconciliations

Reconciliations of the carrying amounts of other assets at the beginning and end of the current and previous financial year are set out below.

Carrying amount at start of year 1,525 1,519

Additions 17 6

Reclassification of Crown land to land held for sale 10,286 -

Disposals (6) -

Revaluation increments 50 -

Carrying amount at end of year 11,872 1,525

NOTE 14. NATURAL RESOURCE ASSETS

2001 2000 $’000 $’000

Breeding livestock 2,218 1,769

Commercial native forests 308,948 311,619

311,166 313,388

Reconciliations

Reconciliations of the carrying amounts of natural resource assets at the beginning and end of the current and previous financial year are set out below.

Carrying amount at start of year 313,388 298,647

Revaluation (decrements)/increments (2,222) 14,741

Carrying amount at end of year 311,166 313,388

The value of the livestock on hand at 30 June was calculated on the basis of recent market values published in local market sales reports.

Productive trees in commercial native forests are valued at 30 June 2001 at the net present value of net cash flows expected to be generated from its produce on a sustainable yield basis over an 80 year life, discounted at a market-determined rate provided by the Department of Treasury and Finance of 8 per cent. Refer to Note 1 (a) Non - Current Assets and Note 1 (i) Self-Generating and Regenerating Assets.

Natural Resources and Environment Annual Report 109 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2001 (CONTINUED)

NOTE 15. PAYABLES

2001 2000 $’000 $’000

Current liabilities Trade creditors 14,127 13,284 Wage increase accrued - 5,356 Advance from the Public Account 7,754 - Other (includes fringe benefits tax, payroll tax, superannuation payable etc.) 6,453 3,136 28,334 21,776 Non-current liabilities Other creditors 1,980 2,040

Other creditors relate to an amount owing for the purpose of land purchase to be repaid at $60,000 per annum.

NOTE 16. INTEREST BEARING LIABILITIES

2001 2000 $’000 $’000

Non-current liabilities – unsecured

Advances from Department of Treasury and Finance 8,199 8,199

Advances were obtained from the Treasurer to fund compensation payments to eligible beneficiaries for diseased livestock. Repayments are dependent upon the availability of funds.

The current interest rate is 4.5% on the advance (2000 – 4.5%)

NOTE 17. PROVISIONS

2001 2000 $’000 $’000

Current

Employee entitlements

Annual leave 19,657 18,467

Long service leave 3,344 3,676

Other 591 752

23,592 22,895 Non-current

Employee entitlements

Long service leave 64,602 58,538

64,602 58,538 Aggregate carrying amount of provisions

Current 23,592 22,895

Non-current 64,602 58,358

Employee Entitlements 88,194 81,433

110 Natural Resources and Environment Annual Report FINANCIALS

NOTE 18. EQUITY AND MOVEMENTS IN EQUITY

2001 2000 $’000 $’000

(a) Reserves

Asset revaluation reserve 941,949 944,040 Movements

Asset revaluation reserve

Balance at 1 July 2000 944,040 794,516

Increment/(Decrement) on revaluation during the year resulting from:

Crown Land 566 43,446

National Parks - 136,129

Roads (1,293) (30,526)

Buildings and structures 1,440 475

Other assets 50 -

Net realisation of asset revaluation reserve during the year. (2,854) -

Balance at 30 June 2001 941,949 944,040

(b) Accumulated Surplus

Accumulated surplus at the beginning of the financial year 1,953,784 1,906,910

Adjustment between controlled and administered balances (Refer Note 1(x)). (8,249) (23,784)

Adjusted accumulated surplus at beginning (i) 1,945,535 1,883,126

Net result 8,080 40,302

Net recognition of assets/ liabilities (ii) - 30,356

Accumulated surplus at end of the financial year 1,953,615 1,953,784

(i) Adjusted accumulated surplus at the beginning of the financial year.

As a result of a change in the classification of assets and liabilities between controlled and administered at 1 July 2000, the controlled accumulated surplus at the beginning has been adjusted accordingly:

Accumulated surplus at 1 July 2000 1,953,784 1,906,910

Adjustments resulting from reclassification of assets and liabilities from controlled to administered:

Cash assets (107) -

Receivables (net) (3,811) (9,698)

Unearned revenue 90 -

(3,828) (9,698)

Adjustments resulting from reclassification of assets and liabilities from administered to controlled:

Payables (565) -

(4,393) -

Adjustment resulting from reclassification of previous years accumulated surplus from controlled to administered: (3,856) (14,086)

Net decrease to accumulated surplus at 1 July 2000 (8,249) (23,784)

Adjusted accumulated surplus at 1 July 2000 1,945,535 1,883,126

Natural Resources and Environment Annual Report 111 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2001 (CONTINUED)

NOTE 18. EQUITY AND MOVEMENTS IN EQUITY (CONTINUED)

2001 2000 $’000 $’000

(ii) Recognition of assets and liabilities

The following assets were recognised during the financial year:

Land - 36,950

Other - 1,605

- 38,555

The following liabilities were recognised during the financial year:

Loan from the Department of Treasury and Finance - (8,199)

Net recognition of assets/ liabilities - 30,356

(c) Nature and purpose of reserves

Asset Revaluation Reserve

The asset revaluation reserve is used to record increments and decrements on the revaluation of non-current assets, as described in accounting policy note 1(i). (d) Movements in equity

Total equity at the beginning of the financial year 2,897,824 2,701,426

Net adjustments resulting from the reclassification of controlled and administered items (8,249) (23,784)

Adjusted equity at the beginning of the financial year 2,889,575 2,677,642 Changes in equity recognised in the statement of financial performance;

Operating result 8,080 40,302

(Decrease)/increase in asset revaluation reserve (2,091) 149,524

Net recognition of assets/liabilities - 30,356

Total changes in equity recognised in the statement of financial performance 5,989 220,182

Total equity at the end of the financial year 2,895,564 2,897,824

112 Natural Resources and Environment Annual Report FINANCIALS

NOTE 19. FINANCIAL INSTRUMENTS

(a) Credit risk exposures The credit risk on financial assets of the Department which have been recognised on the statement of financial position, other than shares, is generally the carrying amount, net of any provisions for doubtful debts.

(b) Interest rate risk exposures The Department’s exposure to interest rate risk and the effective weighted average interest rate by maturity periods is set out in the following table. For interest rates applicable to each class of asset or liability refer to individual notes to the financial statements.

Exposures arise predominantly from assets and liabilities bearing variable interest rates as the Department intends to hold fixed rate assets and liabilities to maturity.

Fixed interest maturing in: Floating 1 year Over 1 More than Non- interest rate or less to 5 years 5 years interest bearing Total Notes $'000 $'000 $'000 $'000 $'000 $'000

2001 Financial assets Cash and deposits 7 10,534 - - - 49,366 59,900 Receivables 8 - - - - 77,578 77,578 Other financial assets - investments 10 - 15,300 - - 6 15,306 10,534 15,300 - - 126,950 152,784 Weighted average interest rate 4.6% 5.05% Financial liabilities Payables 15 - - - - 22,560 22,560 Deposits repayable - - - - 275 275 Advances from Government 15, 16 - - 8,199 - 7,754 15,953 - - 8,199 - 30,589 38,788 Weighted average interest rate 4.75% Net financial assets (liabilities) 10,534 15,300 (8,199) - 96,361 113,996

2000 $'000 $'000 $'000 $'000 $'000 $'000 Financial assets Cash and deposits 7 604 - - - 52,941 53,545 Receivables 8 - - - - 76,153 76,153 Other financial assets – investments 10 - 26,720 - - 6 26,726 604 26,720 - - 129,100 156,424 Weighted average interest rate 5.6% 6.16% Financial liabilities Payables 15 - - - - 23,816 23,816 Deposits repayable - - - - - 351 351 Advances from Government 16 - - 8,199 - - 8,199 - - 8,199 - 24,167 32,366 Weighted average interest rate 4.75% Net financial assets (liabilities) 604 26,720 (8,199) - 104,933 124,058

Natural Resources and Environment Annual Report 113 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2001 (CONTINUED)

NOTE 19. FINANCIAL INSTRUMENTS (CONTINUED)

(c) Net fair value of financial assets and liabilities

(i) On-balance sheet

The net fair value of cash and cash equivalents and non-interest bearing monetary financial assets and financial liabilities of the Department approximates their carrying amounts.

The net fair value of other monetary financial assets and financial liabilities is based upon market prices where a market exists or by discounting the expected future cash flows by the current interest rates for assets and liabilities with similar risk profiles.

(ii) Off-balance sheet

The Department has no potential financial liabilities which may arise from contingencies disclosed in Note 23. No material losses are anticipated in respect of any of the contingencies.

The carrying amounts and net fair values of financial assets and liabilities at reporting date are:

2001 2001 2000 2000 Carrying Net fair Carrying Net fair amount value amount value $’000 $’000 $’000 $’000

On-balance sheet financial instruments

Financial assets

Cash 49,366 49,366 52,941 52,941

Deposits 10,534 10,534 604 604

Receivables 10,241 10,241 10,434 10,434

Other debtors 67,337 67,337 65,719 65,719

Other financial assets – investments 15,306 15,306 26,726 26,726

Non-traded financial assets 152,784 152,784 156,424 156,424

Financial liabilities

Trade creditors 14,127 14,127 13,284 13,284

Other creditors 8,433 8,433 10,532 10,532

Advances from Government 15,953 15,953 8,199 8,199

Deposits repayable 275 275 351 351

Non-traded financial liabilities 38,788 38,788 32,366 32,366

None of the classes of financial assets and liabilities are readily traded on organised markets in standardised form.

Net fair value is exclusive of costs which would be incurred on realisation of an asset, and inclusive of costs which would be incurred on settlement of a liability.

114 Natural Resources and Environment Annual Report FINANCIALS

NOTE 20. MINISTERS AND ACCOUNTABLE OFFICER

In accordance with the Directions of the Minister for Finance under the Financial Management Act 1994, the following disclosures are made regarding responsible persons for the reporting period.

Names

The persons who held the above positions in the Department are as follows:

Minister for Environment and Conservation The Hon. Sherryl Garbutt MP 1 July 2000 to 30 June 2001

Minister for Agriculture and Minister for Aboriginal Affairs The Hon. Keith Hamilton MP 1 July 2000 to 30 June 2001

Minister for Energy and Resources The Hon. Candy Broad MP 1 July 2000 to 30 June 2001

Secretary Ms. Chloe Munro 1 July 2000 to 30 June 2001

Remuneration

Remuneration received or receivable by the Accountable Officer in connection with the management of the Department during the reporting period was in the range:

$240,000 to $250,000 ($410,000 to $420,000 in 2000).

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

Other transactions

Other related transactions and loans requiring disclosure under the Directions for the Minister for Finance have been considered and there are no matters to report.

Natural Resources and Environment Annual Report 115 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2001 (CONTINUED)

NOTE 21. REMUNERATION OF EXECUTIVES

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

Several factors have affected the total remuneration payable to executives over the year. A number of employment contracts were completed during the year and renegotiated and a number of executives received bonus payments during the year. These bonus payments depend on the terms of individual employment contracts.

During the past year 7 executive officers retired, resigned or were retrenched. This has had an impact on total remuneration figures due to the inclusion of annual leave, long service leave and retrenchment payments. As at the 30 June 2001 the Department employed 53 executive officers including the accountable officer and had three executive positions vacant.

Remuneration of Executive Officers

Total Remuneration Base Remuneration 2001 2000 2001 2000 Income Band No. No. No. No.

$0 - 9,999 3 - 3 - $20,000 - 29,999 - - - 1 $30,000 - 39,999 - - 1 - $40,000 - 49,999 2 1 2 2 $50,000 - 59,999 2 1 1 1 $60,000 - 69,999 1 1 1 1 $70,000 - 79,999 - - - 1 $80,000 - 89,999 1 1 1 3 $90,000 - 99,999 1 1 7 6 $100,000 - 109,999 8 7 13 19 $110,000 - 119,999 10 14 13 6 $120,000 - 129,999 17 8 9 12 $130,000 - 139,999 4 6 5 7 $140,000 - 149,999 5 6 1 2 $150,000 - 159,999 3 5 2 - $160,000 - 169,999 - 7 - 1 $170,000 - 179,999 2 2 - -

$240,00 - 249,999 - 2 - - Total Numbers 59 62 59 62

Total amount ($’000) $6,651 $8,132 $6,144 $6,724

116 Natural Resources and Environment Annual Report FINANCIALS

NOTE 22. REMUNERATION OF AUDITORS

2001 2000 $’000 $’000

Amounts received, or due and receivable, by the Victorian Auditor General’s Office for the audit of the Department’s financial report:

Paid as at 30 June 2001 65 -

Payable as at 30 June 2001 199 248

NOTE 23. CONTINGENT LIABILITIES

2001 2000 $’000 $’000

Details and estimates of maximum amounts of contingent liabilities are as follows: Contingent losses

Damages claims 8,735 2,656

Mining rehabilitation 1,375 1,375

Public liability insurance claims 3,693 2,894

Other 30 -

13,833 6,925

(a) The Department has unquantifiable contingent liabilities comprising 21 native title claims made in relation to Victorian land and resources.

(b) There are no anticipated GST recoverable amounts included in the above claims.

Natural Resources and Environment Annual Report 117 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2001 (CONTINUED)

NOTE 24. COMMITMENTS FOR EXPENDITURE

2001 2000 $’000 $’000

Capital commitments

Capital expenditure contracted for at reporting date but not recognised in the financial report as liabilities, payable:

Within one year 2380 93

The amount of Goods and Services Tax included in the above commitments, that could be recovered from the Australian Taxation Office, amounts to $180,000 ($0 in 2000).

Operating leases

Commitments for minimum lease payments in relation to non cancellable operating leases are payable as follows:

Within one year 25,307 18,052

Later than one year but no later than five years 46,318 39,456

Later than five years 10,776 2,394

82,401 59,902

The amount of Goods and Services Tax included in the above commitments, that could be recovered from the Australian Taxation Office, amounts to $5,982,000 ($0 in 2000).

Other operating commitments

Other operating commitments are contracts for services to be provided to the Department to support the delivery of its outputs

Not later than one year 17,908 -

Later than one year but less than five years 18,958 -

36,866 -

Other operating commitments are reported in 2001 for the first time.

The amount of Goods and Services Tax included in the above commitments, that could be recovered from the Australian Taxation Office, amounts to $93,000 ($0 in 2000).

118 Natural Resources and Environment Annual Report FINANCIALS

NOTE 25. EMPLOYEE ENTITLEMENTS

2001 2000 $’000 $’000

Employee entitlement liabilities

Provision for employee entitlements

Current (Note 17) 23,592 22,895

Non-current (Note 17) 64,602 58,538

Aggregate employee entitlement liability 88,194 81,433

As explained in notes 1(s) the amounts for long service leave is measured at present value. The following assumptions were adopted in measuring present value:

Long Service Leave 2001 2000

Weighted average rates of increase in annual employee entitlements to settlement of the liabilities 5.7% 4.5%

Weighted average discount rates 5.8% 4.9%

Weighted average terms to settlement of the liabilities 15 years 15 years

Government Employees' Superannuation Fund

No liability is recognised in the statement of financial position for the Department’s share of the State’s unfunded superannuation liability. The State’s unfunded superannuation liability has been reflected in the financial statements of the Department of Treasury and Finance.

However, superannuation contributions for the reporting period are included as part of salaries and associated costs in the statement of financial performance of the Department.

The name and details of the major employee superannuation funds and contributions made by the Department are as follows:

Fund

Contribution Contribution for the Year for the Year 2001 2000 $’000 $’000

Government Superannuation Scheme – revised and new 12,636 12,232

State Employee Retirement Benefit Fund 116 130

Water Industries Super Fund 16 19

Victorian Superannuation Fund – Vic Super Scheme 6,088 4,302

Emergency Services Superannuation Scheme 84 64

Various other 283 184

19,223 16,931

The bases for contributions are determined by the various schemes.

The requirements of the Superannuation Industry (Supervision) Act 1993 are fully complied with.

All employees of the Department are entitled to benefits on retirement, disability or death from the Government Employees' Superannuation Fund. This Fund provides defined lump sum benefits based on years of service and final average salary.

The above amounts were measured as at 30 June of each year, or in the case of employer contributions they relate to the years ended 30 June.

Natural Resources and Environment Annual Report 119 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2001 (CONTINUED)

NOTE 26. ADMINISTERED ITEMS

In addition to the specific Departmental operations which are included in the statement of financial position, statement of financial performance and statement of cash flows, the Department administers or manages activities on behalf of the State. The transactions relating to these State activities are reported as administered in this note. Administered transactions give rise to revenues, expenses, assets and liabilities and are determined on an accrual basis. Administered revenues include taxes, fees and fines and the proceeds from the sale of administered surplus land and buildings. Administered liabilities include Government expenses incurred but yet to be paid. Administered assets include Government revenues earned but yet to be collected.

Output Group 401 Output Group 402 Output Group 403 Output Group 404 Minerals and Petroleum Forest Management Fire Management Fisheries

2001 2000 2001 2000 2001 2000 2001 2000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Administered Revenue

Appropriations - Payments on behalf of the State - - 1,322 1,653 - - - - Provision of services 28 - 1 - - - 198 108 Regulatory fees and fines 1,499 742 4,779 4,949 - - 8,636 8,862 Licences and leases 2,376 2,851 1,251 292 - - - 3 Royalties 5,214 4,572 26,794 30,441 - - - - Other revenue 4,777 142 51,572 43,618 (9) (559) 3,940 (38) Total 13,894 8,307 85,719 80,953 (9) (559) 12,774 8,935

Administered Expenses

Payments made on behalf of the State 8 16 45 88 25 51 13 26 Payments into the Consolidated Fund 9,411 7,735 80,583 81,061 483 69 12,048 8,818 Other expenses 478 172 5,270 2,461 (22) 52 73 27 Resources provided free of charge ------Total 9,897 7,923 85,898 83,610 486 172 12,134 8,871 Revenue less expenses 3,997 384 (179) (2,657) (495) (731) 640 64

Administered Assets

Cash in trust and investments 3,964 3,848 567 1,371 71 100 37 52 Receivables 3,330 2,817 17,131 14,628 2 50 1,491 25 Total 7,294 6,665 17,698 15,999 73 150 1,528 77

Administered Liabilities

Cash in trust and investments - 3,848 - 1,371 - 100 - 52 Creditors and accruals 1 110 1,216 131 (5) 75 138 39 Deposits repayable 381 671 162 185 3 7 2 3 Unearned revenue 3,010 2,405 232 - - - 315 190 Total 3,392 7,034 1,610 1,687 (2) 182 455 284

120 Natural Resources and Environment Annual Report FINANCIALS

Output Group 415 Output Group 416 Output Group 417 Output Group 418 Output Group 419 Total Land Management Conservation Agriculture Catchment Aboriginal Reconciliation and Information and Recreation and Water and Respect

2001 2000 2001 2000 2001 2000 2001 2000 2001 2000 2001 2000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

- - - 1,151 - - 17,567 26,982 - - 18,889 29,786 142,162 148,266 8 8 34 13 75 - - - 142,506 148,395 18 23 1,816 1,823 205 50 - - - - 16,953 16,449 5,371 3,459 4,478 767 3 2 4 8 - - 13,483 7,382 6 21 - - - - 330 399 - - 32,344 35,433 (835) (5,083) 3,421 (1,991) 32,028 (197) 51,306 12,610 (10) - 146,190 48,502 146,722 146,686 9,723 1,758 32,270 (132) 69,282 39,999 (10) - 370,365 285,947

49 97 19 1,188 83 160 18,384 29,434 - - 18,626 31,060 151,523 150,558 9,322 2,927 26,387 479 51,447 11,260 - - 341,204 262,907 130 26 (290) 140 74 157 (135) 123 - - 5,578 3,158 2 3,250 - - - - - 7,836 - - 2 11,086 151,704 153,931 9,051 4,255 26,544 796 69,696 48,653 - - 365,410 308,211 (4,982) (7,245) 672 (2,497) 5,726 (928) (414) (8,654) (10) - 4,955 (22,264)

149 227 52 73 233 315 183 254 - - 5,256 6,240 2,715 3,689 333 82 16,118 8,355 772 232 - - 41,892 29,878 2,864 3,916 385 155 16,351 8,670 955 486 - - 47,148 36,118

- 227 - 73 - 315 - 254 - - - 6,240 158 150 31 119 650 236 100 657 - - 2,289 1,517 20 48 3 5 11 21 9 14 - - 591 954 8,331 8,001 1,409 1,227 205 104 40 - - - 13,542 11,927 8,509 8,426 1,443 1,424 866 676 149 925 - - 16,422 20,638

Natural Resources and Environment Annual Report 121 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2001 (CONTINUED)

NOTE 27. EX-GRATIA PAYMENTS

2001 2000 $’000 $’000

The Department made the following ex-gratia payments:

Ex-gratia payments 46 16

These ex-gratia payments were mainly to recipients of Rural Industry Research Development Corporation Rural Women’s Awards and Science Awards.

NOTE 28. EVENTS OCCURRING AFTER REPORTING DATE

The Department was not aware of any circumstances that had arisen, or information that had become available between 30 June 2001 and the date of final approval of this general purpose financial report that qualifies for inclusion as an event occurring after reporting date.

NOTE 29. BONDS AND GUARANTEES HELD IN TRUST

2001 2000 $’000 $’000

The Department held the following bonds and guarantees in trust as at 30 June 2001. The purpose of holding these funds includes providing security by the titleholders for the rehabilitation of mining and exploration sites when operations cease.

Cash bonds and guarantees held in trust 553 907

The Department does not control these funds unless mining and extractive industry operators fail to rehabilitate the site(s). As a result these funds are administered Cash in Trust and reported in Note 26.

122 Natural Resources and Environment Annual Report FINANCIALS

NOTE 30. RECONCILIATION OF RESULTS FROM ORDINARY ACTIVITIES TO NET CASH INFLOW FROM OPERATING ACTIVITIES

2001 2000 $’000 $’000

Results from ordinary activities 8,080 40,302

Depreciation and amortisation 26,882 22,086

Increase/(decrease) in doubtful debts 16 (27)

Net gain on sale of non-current assets (1,015) (5,344)

Net transfers free of charge 5,006 1,480

Net recognition of assets/liabilities (8,894) -

Asset revaluation expense (994) 1,626

Decrease/(increase) in net market value of self-generating and regenerating assets 2,428 (14,736)

Change in operating assets and liabilities

(Increase)/decrease in debtors and receivables (5,252) 3,719

Decrease in prepayments 605 139

(Increase)/decrease in other operating assets (647) 638

Increase in employee entitlements 6,761 7,339

(Decrease)/increase in creditors and accruals (1,760) 6,942

Increase/(decrease) in other operating liabilities 477 (101)

Net cash inflow from operating activities 31,693 64,063

NOTE 31. NON-CASH FINANCING AND INVESTING ACTIVITIES

2001 2000 $’000 $’000

Restructuring of administrative arrangements 429 -

Restructuring of Administrative Arrangements

During the reporting period, as a result of a restructuring of administrative arrangements, assets and liabilities amounting to $434,000 and $625,000 respectively were transferred to the Department from the Department of Human Services. In addition, assets and liabilities amounting to $8,000 and $180,000 respectively were transferred to the Department from the Department of Treasury and Finance. In addition, assets and liabilities amounting to $69,000 and $3,000 respectively were transferred to the Department of State and Regional Development.

Natural Resources and Environment Annual Report 123 ACCOUNTABLE OFFICER’S DECLARATION

ACCOUNTABLE OFFICER’S DECLARATION

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

We further state that, in our opinion, the information set out in the statement of financial performance, statement of financial position, statement of cash flows and notes to and forming part of the financial statements, presents fairly the financial transactions during the year ended 30 June 2001 and financial position of the Department as at 30 June 2001.

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

Alan Young Chloe Munro Chief Finance Officer Secretary Department of Natural Resources and EnvironmentDepartment of Natural Resources and Environment Melbourne, 29 August 2001 Melbourne, 29 August 2001

124 Natural Resources and Environment Annual Report

APPENDICES CONTENTS

1 Compliance Index 127

2 Appendix 1. Executive Officers: Department of Natural Resources and Environment and Declared Entities 129

3 Appendix 2. Budget Portfolio Outcomes 132

4 Appendix 3. Consultancies 138

5 Appendix 4. Disclosure of Major Contracts 139

6 Appendix 5. Disclosure of Contracts greater than $100,000` 139

7 Appendix 6. Statement on the processes adopted to deliver standards of probity and contracting in compliance with Victorian Governments Purchasing Board (VGPB) Guidelines 139

8 Appendix 7. Freedom of Information and Ombudsman 139

9 Appendix 8. Compliance with Building and Maintenance Provisions of the Building Act 1993 140

10 Appendix 9. Major Committees and Statutory Authorities 141

11 Appendix 10. Progress on Implementing Government Reforms 142

12 Appendix 11. Water Resource Assessment Program 143

13 Appendix 12. Available Information 145

126 Natural Resources and Environment Annual Report APPENDICES

COMPLIANCE INDEX

The Annual Report of the Department of Natural Resources and Environment is prepared in accordance with the Financial Management Act 1994 and the Directions of the Minister for Finance. This index facilitates identification of the Department’s compliance with the Directions of the Minister for Finance by listing references to disclosures in this financial report.

Clause Disclosure Requirement Page

Report of Operations Charter and purpose 9.1.3(i)(a) Manner of establishment and Ministers IFC 9.1.3(i)(b) Objectives, functions, powers and duties 1,3 9.1.3(i)(c) Nature and range of services provided 14,15

Management and structure 9.1.3(i)(d)(i) Name of Chief Executive Officer 62 9.1.3(i)(d)(ii) Names of senior office holders and brief description of responsibility 62, 63 9.1.3(i)(d)(iii) Organisational structure 60, 61

Financial and other information 9.1.3(i)(e) Statement of workforce data and merit and equity 66, 68 9.1.3(ii)(a) Summary of the financial results for the year 12 9.1.3(ii)(b) Significant changes in financial position during the year 12 9.1.3(ii)(c) Operational and budgetary objectives and performance against objectives 12 9.1.3(ii)(d) Major changes or factors affecting achievement 12 9.1.3(ii)(e) Subsequent events 12 9.1.3(i)(f) Application and operation of Freedom of Information Act 1982 140 9.1.3(ii)(h) Compliance with building and maintenance provisions of Building Act 1993 140 9.1.3(ii)(k) Statement on National Competition Policy 140 9.1.3(ii)(f) Details of consultancies over $100,000 138 9.1.3(ii)(g) Details of consultancies under $100,000 138 9.6.2(i)(iv) Disclosure of major contracts 138 9.1.3(ii)(i) Statement of availability of other information 144 9.1.3(ii)(j) Compliance index 127

Financial Statements Basis on which financial statements have been prepared and other compliance details 9.2.2(ii)(a) Accrual basis of accounting 86 9.2.2(ii)(b) Compliance with AASs and other authoritative pronouncements 86 9.2.2(ii)(c) Compliance with Ministerial Directions and AFRBs 86 9.2.2(ii)(d) Adoption of the historical cost convention, except for specified assets 86 9.2.2(iii) Rounding of amounts 87 9.2.2(i)(d) Notes to the financial statements (Contents page) 85 9.2.2(iv) Accountable officer’s declaration 124

Statement of financial performance 9.2.2(i)(a) Statement of financial performance 82 9.2.3(ii)(a) Operating revenue by class 99 9.2.3(ii)(b) Investment income by class 99 9.2.3(ii)(c) Other material revenue, including disposal of non current assets 102 9.2.3 (ii)(e) Depreciation 102 9.2.3(ii)(f) Bad and doubtful debts 102 9.2.3(ii)(g) Financing costs 102 9.2.3(ii)(h) Net increment or decrement on revaluation recognised in the statement of financial performance 82 9.2.3(ii)(i) Audit expense 117 9.7.2(i)(ii) Motor vehicle lease commitments 118

Natural Resources and Environment Annual Report 127 APPENDICES (CONTINUED)

Statement of financial position 9.2.2(i)(b) Statement of financial position 83 9.2.3(iii)(a)(i) Cash at bank and funds held in trust 102 9.2.3(iii)(a)(ii) Inventories by class 103 9.2.3(iii)(a)(iii) Receivables, including trade debtors, loans and other debtors 103 9.2.3(iii)(a)(iv) Other assets, including prepayments 83, 108, 109 9.2.3(iii)(a)(v) Investments 104 9.2.3(iii)(a)(vi) Property, plant and equipment 105 9.2.3(iii)(a)(vii) Intangible assets 108 9.2.3(iii)(b)(i) Overdrafts 102 9.2.3(iii)(b)(ii) Other loans 110 9.2.3(iii)(b)(iii) Trade and other creditors 110 9.2.3(iii)(b)(iv) Finance lease charges 110 9.2.3(iii)(b)(v) Provisions, including employee entitlements 110 9.2.3(iii)(c)(i)(ii) Contributed capital 111 9.2.3(iii)(d)(i)(iv) Reserves, and transfers to and from reserves 111 9.8 Occupational Health and Safety 67

Statement of Cash Flows 9.2.2(i)(c) Statement of cash flows during the year 84

Other disclosures in Notes to the Financial Statements 9.2.3(iv)(a) Liability secured by a charge over assets na 9.2.3(iv)(b) Contingent liabilities 117 9.2.3(iv)(c) Commitments for expenditure 118 9.2.3(iv)(d) Government grants received or receivable 82, 98 9.2.3(iv)(e) Employee superannuation funds 119 9.2.3(iv)(f) Ex-gratia payments 122 9.4 Responsible person-related disclosures 116

128 Natural Resources and Environment Annual Report FINANCIALS

APPENDIX 1. EXECUTIVE OFFICERS: DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENT AND DECLARED ENTITIES

To improve the information about executive numbers, changes have been made to how such numbers are reported by the Department. These changes are detailed below.

Executive positions have been split into two segments, Ongoing and Special Projects: • Ongoing executives are those executives who are responsible for functions or outputs that are expected to be continuing at the reporting date • Special Project executives are those executives that are employed on fixed term policy or project specific tasks. These are generally time bounded and relate to a specific Government priority.

The enhanced disclosure of executive numbers and the reconciliation between the Report of Operations and the Financial Statements is based on the need to improve transparency and completeness of information about executive numbers.

As part of the process of making more transparent executive numbers across the VPS, this reporting period is the first time the Department has included executive numbers for declared entities within the Portfolio. These entities have been determined by the Portfolio Minister based on a recommendation from the Accountable Officer of the Department.

At 30 June 2001 Continuing Specified Total Executive Term Roles Roles

Executives Employed 53 0 53

Vacancies Being Filled 2 1* 3

Total 55 1 56

* Director Snowy Project - 3 year fixed term

Gender profile of Executive Officers at 30 June 2001 (excludes 3 vacancies)

Classification Female Variation Male Variation Total Variation from from from last year last year last year

EO-1 1 - 0 - 1 -

EO-2 2 - 10 +1 12 +1

EO-3 13 +1 27 +3 40 +4

Total 16 +1 37 +4 53 +5

Reconciliation of Executive numbers (including vacancies) at 30 June 2001 (with Executive Officers’ remuneration note 24 in the Financial Statements)

2001 2000

Executive numbers reported in Financial Statements 59 62

Add

Accountable Officer 1 1

Recruiting for vacant positions 3 3

Less

Separations 4 15

Separations (in 1999-00 but monies paid in 2000-01 year) 3

Total Executive Numbers including vacancies at 30 June 56 51

Natural Resources and Environment Annual Report 129 APPENDICES (CONTINUED)

DECLARED ENTITIES

At 30 June 2001 Continuing Specified Total Executive Roles Term Roles

Corangamite Catchment Management Authority

Executives Employed 1 0 1

Vacancies Being Filled 0 0 0

Total 1 0 1

Goulburn-Broken Catchment Management Authority

Executives Employed 1 0 1

Vacancies Being Filled 0 0 0

Total 1 0 1

Mallee Catchment Management Authority

Executives Employed 1 0 1

Vacancies Being Filled 0 0 0

Total 1 0 1

North Central Catchment Management Authority

Executives Employed 1 0 1

Vacancies Being Filled 0 0 0

Total 1 0 1

North East Catchment Management Authority

Executives Employed 1 0 1

Vacancies Being Filled 0 0 0

Total 1 0 1

West Gippsland Catchment Management Authority

Executives Employed 1 0 1

Vacancies Being Filled 0 0 0

Total 1 0 1

EcoRecycle

Executives Employed 1 0 1

Vacancies Being Filled 0 0 0

Total 1 0 1

Environment Protection Authority

Executives Employed 9 1* 10

Vacancies Being Filled 0 0 0

Total 9 1 10

*4 month short-term appointee managing the development of the water quality program initiative

130 Natural Resources and Environment Annual Report DECLARED ENTITIES(CONTINUED)

At 30 June 2001 Continuing Specified Total Executive Roles Term Roles

Office of the Chief Electrical Inspector

Executives Employed 3* 0 3

Vacancies Being Filled 0 0 0

Total 3 0 3

*Chief Electrical Inspector not included (GIC appointee)

Office of Gas Safety

Executives Employed 2* 0 2

Vacancies Being Filled 0 0 0

Total 2 0 2

* Director, Office of Gas Safety not included (GIC appointee)

Parks Victoria

Executives Employed 12 0 12

Vacancies Being Filled 0 0 0

Total 12 0 12

Royal Botanic Gardens

Executives Employed 5 0 5

Vacancies Being Filled 1 0 1

Total 6 0 6

Sustainable Energy Authority Victoria

Executives Employed 0* 0 0

Vacancies Being Filled 0 0 0

Total 0 0 0

* General Manager not included (GIC appointee)

Trust for Nature

Executives Employed 1 0 1

Vacancies Being Filled 0 0 0

Total 1 0 1

Zoological Parks and Gardens

Executives Employed 9 0 9

Vacancies Being Filled 0 0 0

Total 9 0 9

Total Department and Declared Entities

Executives Employed 101 1 102

Vacancies Being Filled 3 1 4

Total 104 2 106

Note: Melbourne Parks and Waterways, Shrine of Remembrance, Surveyors Board and Veterinary Practitioners Registration Board of Victoria employ no Executives.

Natural Resources and Environment Annual Report 131 APPENDICES (CONTINUED)

APPENDIX 2. BUDGET PORTFOLIO OUTCOMES

The following Budget Portfolio Outcomes statements have been prepared in accordance with Ministerial Direction 9.10 of the Financial Management Act 1994.

The accrual output based appropriation, budgeting, performance monitoring and reporting model introduced by the Victorian Government through the 1998-99 Budget, provides the accountability loop for departments. It commences with the publication of the budget portfolio financial statements in the annual Budget Papers and ends with the publication of actual results in departmental annual reports.

The Budget Portfolio Outcomes statements provide a means of comparative analysis between the actual financial performance of all entities within the portfolio with the forecasts published in Budget Paper No. 3, ‘Budget Estimates’.

These statements are not subject to audit by the Victorian Auditor-General and are not prepared on the same basis as the Department’s financial statements, which are also included in this report.

132 Natural Resources and Environment Annual Report BUDGET PORTFOLIO OUTCOMES (CONTINUED)

Statement of Financial Position As at 30 June 2001

2000-01 2000-01 Variance Actual Budget % Note ($m) ($m)

Assets Current Assets Cash (3.1) (7.1) (56.3) 1 Investments 27.1 26.7 1.5 Receivables 38.0 21.6 75.9 2 Prepayments 1.6 2.2 (27.3) Inventories 7.3 8.5 (14.1) Other Assets 4.0 - 100 3 Total Current Assets 74.9 51.9 44.3

Non-Current Assets Receivables 139.4 135.1 3.2 Fixed Assets 2,857.9 2,879.0 (0.7) 3 Other Assets 6.3 - 100 3 Total Non-Current Assets 3,003.6 3,014.1 (0.3)

Total Assets 3,078.5 3,066.0 0.4

Liabilities Current Liabilities Payables 27.1 23.6 14.8 4 Borrowing 8.2 8.2 - Employee Entitlements 25.6 31.2 (17.9) 5 Other Liabilities 2.6 2.0 30.0 Total Current Liabilities 63.5 65.0 (2.3)

Non-Current Liabilities Payables 2.6 2.0 30.0 Employee Entitlements 68.1 64.6 5.4 6 Total Non-Current Liabilities 70.7 66.6 6.2

Total Liabilities 134.2 131.6 2.0

Net Assets 2,944.3 2,934.4 0.3

The following Notes provide an explanation of the major items that contributed to the variation between the 2000-01 Actual and 2000-01 Budget.

Notes: 1 Reclassification of deposits at call with the Treasury Corporation from Investments to Cash. 2 Increase in GST input tax credits recoverable from the Tax Office and Accrued Revenue. 3 Reclassification of Crown land held for sale from Fixed Assets to Other Assets. 4 Increase in advance from the Public Account for GST recoverable. 5 Reduction in the provision after the payment of backpay to staff following salary and wage increases. 6 Increase in employee long service leave liabilities resulting from salary and wage increases.

Natural Resources and Environment Annual Report 133 APPENDICES (CONTINUED)

BUDGET PORTFOLIO OUTCOMES (CONTINUED)

Statement of Financial Position As at 30 June 2001

Administered Items

2000-01 2000-01 Variance Actual Budget % Note ($m) ($m)

Assets Current Assets Cash 0.4 1.0 (60.0) Investments 4.8 2.1 128.6 1 Receivables 21.3 19.9 7.0 Total Current Assets 26.5 23.0 15.2

Non-Current Assets Receivables 12.3 14.3 (14.0) Fixed Assets - 7.4 (100.0) 2 Total Non-Current Assets 12.3 21.7 (43.3)

Total Assets 38.8 44.7 (13.2)

Liabilities Current Liabilities Payables 1.2 7.4 (83.8) 3 Other Current Payables 18.4 17.8 3.4 Total Current Liabilities 19.6 25.2 (22.2)

Non-Current Payables 0.5 0.6 (16.7) Total Non-Current Liabilities 0.5 0.6 (16.7)

Total Liabilities 20.1 25.7 (21.8)

Net Assets 18.7 19.0 (1.6)

The following Notes provide an explanation of the major items that contributed to the variation between the 2000-01 Actual and 2000-01 Budget.

Notes: 1 Additional investments of funding from administered Trust Funds. 2 This budget was reclassified to controlled capital grants. 3 Adjustment of previous liability recognised for administered cash and investments held in trust.

134 Natural Resources and Environment Annual Report BUDGET PORTFOLIO OUTCOMES (CONTINUED)

Statement of Financial Performance For the year ended 30 June 2001

2000-01 2000-01 Variance Actual Budget % Note ($m) ($m)

Operating revenue Revenue from State Government 749.6 703.0 6.6 1 Section 29 receipts - Commonwealth 46.3 50.1 (7.6) - Other 43.7 31.3 39.6 2 Other revenue 151.2 120.3 25.7 3 Total 990.8 904.7 9.5

Operating expenses Employee related expenses 284.7 257.7 10.5 4 Purchase of supplies and services 318.8 330.0 (3.4) 5 Depreciation and amortisation 28.4 27.2 4.4 Capital assets charge 67.0 71.4 (6.2) Other expenses 266.2 228.6 16.4 6 Total 965.1 914.9 5.5

Operating surplus / (deficit) before revenue for increase in net assets 25.7 (10.2) (352.0) Add: Revenue for increase in net assets 10.3 27.1 (62.0) 7 Section 29 Receipts - asset sales 2.2 5.0 (56.0) Operating surplus / (deficit) 38.2 21.9 74.4

Administered Items Operating revenue Revenue from State Government 18.9 34.7 (45.5) 8 Other revenue 272.4 256.7 6.1 9 Less revenue transferred to Consolidated Fund (267.5) (256.7) 4.2 9 Total 23.8 34.7 (31.4)

Operating expenses Purchases of supplies and services 1.8 19.3 (90.7) 10 Other expenses 22.3 8.3 168.7 10 Total 24.1 27.6 (12.7)

Operating surplus / (deficit) (0.3) 7.1 (104.2)

The following Notes provide an explanation of the major items that contributed to the variation between the 2000-01 Actual and 2000-01 Budget. Notes: 1 Reclassification of capital grants from asset investment, and supplementary funding from Treasurer's Advance. 2 Increased revenue for externally funded research projects and entry fees to National Parks. 3 Recognition of assets, recoups from CFA and increase in external funding for research activities. 4 Reflects additional costs for salary and wage increases. 5 Includes underspending in various projects which have been approved to carryover to 2001-02. 6 Reclassification of capital grants from asset investment and payments to Water Authorities from administered. 7 Decrease in net revenue due to reclassification of capital grants to outputs and underexpenditure in Asset Investment Program. 8 Revenue which supports payments to Water Authorities has been reclassified to Controlled. 9 Additional revenue from increase in land titles transactions. 10 Payments to the Murray Darling Basin Commission reclassified as current grants within Other Expenses.

Natural Resources and Environment Annual Report 135 APPENDICES (CONTINUED)

BUDGET PORTFOLIO OUTCOMES (CONTINUED)

Statement of Cash Flows For the year ended 30 June 2001

2000-01 2000-01 Variance Actual Budget % Note ($m) ($m)

Cash flows from operating activities Operating receipts Receipts from State Government - provision of outputs 749.6 703.0 6.6 1 Receipts from State Government - increase in net asset base 10.3 27.1 (62.0) 2 Section 29 receipts - Commonwealth 46.1 - 100.0 3 - Other 37.6 31.3 20.1 4 - Asset Sales 2.3 5.0 (54.0) 5 Other Commonwealth Grants - 50.1 (100.0) 6 Other 134.4 118.1 13.8 7 980.3 934.6 4.9 Operating payments Employee related expenses (284.8) (254.2) 12.0 8 Purchase of supplies and services (321.9) (330.0) (2.5) Interest and finance expenses (0.4) - 100.0 Capital assets charge (67.0) (71.4) (6.2) Current grants and transfer payments (241.6) (205.8) 17.4 9 Capital grants and transfer payments (13.9) (22.8) (39.0) 10 Net cash flows from operating activities 50.7 50.4 0.6

Cash flows from investing activities Purchase of investments (0.5) (5.0) (90.0) 11 Receipts from sale of land, fixed assets and investments (incl. S29 FMA) 1.9 5.0 (62.0) 12 Purchase of non-current assets (47.9) (59.0) (18.8) Net cash flows from investing activities (46.5) (59.0) (21.2)

Cash flows from financing activities Net increases in balances held with Government (8.6) 8.6 (200.0) 13 Net borrowings and advances 8.4 - 100.0 14 Net cash flows from financing activities (0.2) 8.6 (102.3)

Net Increase / (Decrease) in Cash Held 4.0 - 100.0 Cash at beginning of the period (7.1) (7.0) 1.4

Cash at end of period (3.1) (7.0) (55.7)

The following Notes provide an explanation of the major items that contributed to the variation between the 2000-01 Actual and 2000-01 Budget. Notes: 1 Reclassification of capital grants and supplementary funding from Treasurer's Advance. 2 Relates to reclassification of capital grants to outputs and underspending in the Assets Investment Program. 3 Budget for Commonwealth annotated receipts included in Other Commonwealth Grants. 4 Increased receipts for externally funded research projects and entry fees to National Parks. 5 Reduced receipts due to Crown Land sales program nearing completion. 6 Commonwealth funds included in Section 29 receipts 7 Includes increased plant and machinery sales, recoups from CFA and externally funded research activities. 8 Reflects additional funding for salary and wage increases. 9 Includes reclassification of administered grants to outputs. 10 Payments for various asset investment initiatives deferred due to planning issues and site conditions. 11 Arrangements for the Solar Hotwater financial assistance scheme changed from repayable loans to grants. 12 Sales of other fixed assets lower than estimated. 13 Represents a higher than expected operating surplus. 14 An advance from the Public Account for GST recoverable from the ATO for outstanding tax credits.

136 Natural Resources and Environment Annual Report BUDGET PORTFOLIO OUTCOMES (CONTINUED)

Statement of Cash Flows For the year ended 30 June 2001

Administered Items

2000-01 2000-01 Variance Actual Budget % Note ($m) ($m)

Cash flows from operating activities Operating receipts Receipts from State Government - Payments on Behalf of the State 19.9 34.7 (42.6) 1 Other 265.2 256.7 3.3 285.1 291.4 (2.2)

Operating payments Employee Related Expenses (0.4) - 100.0 Purchase of supplies and services (2.0) (19.3) (89.8) 2 Current grants and transfer payments (18.6) - 100.0 2 Capital grants and transfer payments - (8.3) (100.0) 3 Other (266.5) (256.7) 3.8 Net cash flows from operating activities (2.3) 7.1 (133.0)

Cash flows from investing activities Net movement in Investments (1.2) 0.1 (1,300.0) 4 Purchase of Non-Current Assets 0.9 (7.3) (112.3) 5 Net cash flows from investing activities (0.3) (7.2) (95.8)

Cash flows from financing activities Net increase in balances held with Government 2.1 - 100.0 Net cash flows from financing activities 2.1 - 100.0

Net Increase / (Decrease) in Cash Held (0.5) - 100.0

The following Notes provide an explanation of the major items that contributed to the variation between the 2000-01 Actual and 2000-01 Budget. Notes: 1 Reflects reclassification of Appropriations for capital grants to Payments for Outputs. 2 Payments to Murray Darling Basin Commission reclassified as current grants. 3 Capital grants were reclassified as Controlled current grants. 4 Additional investments from administered Trust Funds 5 Reclassification of administered asset purchases to controlled capital grants.

Natural Resources and Environment Annual Report 137 APPENDICES (CONTINUED)

APPENDIX 3. CONSULTANCIES

Consultancies over $100,000

Consultant Details Amount Paid Future in 2000-01 Commitments

CSIRO Gippsland Lakes Hydrodynamic Model $142,968 $50,000

Deloitte & Touche Consulting Group Property Online – preparation of a business case $165,323 Nil

Farrier Swier Consulting Full Retail Contestability (electricity and gas) – Project Management, strategic and legal advice $454,546 Nil

KPMG Consulting Australia Pty Ltd Full Retail Contestability (electricity)– Development of Metrology procedures, pricing policy, tariff modelling, and market readiness. Project Management assistance (2 contracts) $723,465 $290,000

KPMG Consulting Australia Pty Ltd Full Retail Contestability (electricity) – National Project Advisory Services re market settlements and transfer systems $263,982 $200,000

Price Waterhouse Coopers Water Pricing Review $298,311 Nil

Trowbridge Consulting Full Retail Constestability (gas) – Study of load profiling/metering $160,915 Nil

Consultancies under $100,000 There were 194 consultancies costing less than $100,000 engaged during 2000-01 at a total cost of $2,966,906

Comparative Information

Financial Year Over $100,000 Under $100,000 Total No. $ No. $ No. $

1999-00 2 272,949 168 3,469,532 170 3,742,481

2000-01 7 2,209,510 194 2,966,906 201 5,176,416

The increase in the Department’s expenditure on consultancies in 2000-01 reflects the impact of Machinery of Government changes with the transfers of responsibility for Energy Policy from the Department of Treasury and Finance, and Greenhouse Policy from the Department of Premier and Cabinet.

For comparative purposes the Department’s expenditure in 2000-01, excluding Energy Policy and Greenhouse Policy is provided below:

Financial Year Over $100,000 Under $100,000 Total No. $ No. $ No. $

2000-01 3 606,602 160 2,093,093 163 2,699,695

Note: The amounts shown above for consultancies exclude all entitlements to GST Input Tax Credits

138 Natural Resources and Environment Annual Report APPENDIX 4. DISCLOSURE OF MAJOR CONTRACTS

NRE has entered into one contract greater than $10 million in 2000-01 with Lloyd Helicopter Group for the supply of median helicopter services. As at 30 June 2001, NRE was in negotiation regarding the sections of the contract to be treated as Commercial in Confidence.

NRE has disclosed, in accordance with the requirements of Government Policy and accompanying guidelines, all contracts greater than $10 million in value which it entered into during 2000-01. Details of the contract, for which disclosure is exempted under the Freedom of Information Act 1982 or Governement guidelines, have not been disclosed. Contracts that have been disclosed can be viewed on the Internet site at www.contracts.vic.gov.au.

APPENDIX 5. DISCLOSURE OF CONTRACTS GREATER THAN $100,000

NRE has entered all contracts greater than $100,000 on the Victorian Governments Purchasing Board’s website http://www.vgpb.vic.gov.au

APPENDIX 6. STATEMENT ON THE PROCESSES ADOPTED TO DELIVER STANDARDS OF PROBITY AND CONTRACTING IN COMPLIANCE WITH VICTORIAN GOVERNMENTS PURCHASING BOARD (VGPB) GUIDELINES

NRE consistently undertakes contracting in accordance with VGPB guidelines. In addition, NRE has actively provided input to the VGPB in the development of revised government standards and guidelines and, where new or revised guidelines have been issued, has actively introduced them throughout the Department. Processes such as the contract register are being developed which will further enhance NRE’s ability to audit compliance across a full range of contracts.

APPENDIX 7. FREEDOM OF INFORMATION AND OMBUDSMAN

The Freedom of Information (FOI) Act 1982 allows the public a right of access to documents held by the Department. For the 12 months ending 30 June 2001, 161 requests were received and 136 finalised. Of those finalised, 38 received full access, 49 partial access and eight were denied access. 19 applicants either withdrew their applications or did not pay the fees, 12 were transferred in full to another agency and ten applicants were advised that no relevant documents could be located or they did not exist. There are 25 requests outstanding.

The Secretary received 14 requests for an internal review of decisions where access was initially denied. The original decision to deny documents was upheld in nine of these reviews, and varied in five.

In the reporting period there were six appeals lodged with the Victorian Civil and Administrative Tribunal and one appeal is still pending.

The Ombudsman referred 20 matters to the Department that were satisfactorily resolved by informal staff contact and correspondence between the Secretary and the Ombudsman. One matter was referred to the Department as a formal investigation.

Freedom of Information requests are made in writing describing the documents requested and including payment of the $20 application fee. Further charges may be payable. FOI fees and charges are not subject to GST. Requests are sent to Freedom of Information, NRE, PO Box 500, East Melbourne Vic 3002. The telephone contact number is 9637 8575.

Natural Resources and Environment Annual Report 139 APPENDICES (CONTINUED)

APPENDIX 8. COMPLIANCE WITH BUILDING AND MAINTENANCE PROVISIONS OF THE BUILDING ACT 1993

NRE complies with the Standards for Publicly Owned Buildings (the Guideline) as prepared by the former Office of Building, Department of Planning and Development (now the Department of Infrastructure). The Guideline applies to new building, all construction work, and relates also to the safety and fitness to occupy facilities.

Major Works Projects (greater than $50,000)

A number of major projects were completed this financial year. All new work and redevelopment of existing properties were carried out to conform to current building regulations (1994) and the provisions of the Building Act 1993.

Either a certificate of Final Inspection or an Occupancy Certificate was issued for new facilities or upgrades to existing facilities by the local authority or by a building surveyor.

Major works included: • Ouyen office upgrade • Upgrade of Calvert Street offices in Bairnsdale • Upgrade of Corryong office • Ovens office and depot refurbishment • Construction of Cowes office • Maffra office resealing of car park • Construction of glasshouse in Rutherglen • Construction of seed warehouse in Horsham.

Maintenance of Buildings in a Safe and Serviceable Condition

Following the June 1999 statewide Condition Audit of corporate properties and facilities, NRE established a maintenance works database determining the scope, timing and estimated cost of the work programs over the next 10 years. During 2000-01 an additional 32 audit surveys were conducted at departmental sites to determine the compliance with Essential Services requirements.

As a result of these audits, 19 medium and larger size buildings were brought into conformity and works were carried out at a number of other smaller properties and facilities to rectify both major and minor regulatory deficiencies. NRE will continue to update its maintenance works database to ensure that buildings and facilities are maintained in a safe and serviceable condition.

140 Natural Resources and Environment Annual Report APPENDIX 9. MAJOR COMMITTEES AND STATUTORY AUTHORITIES

Minister for Agriculture inister for Agriculture Agriculture Victoria Services Pty Ltd First Mildura Irrigation Trust Animal Welfare Advisory Committee Forest Industry Development and Adjustment Committee Apicultural Industry Advisory Committee Geographic Place Names Panel Australian Food Industry Science Centre (trading as Food Science Australia) Gippsland Lakes and Coast Regional Coastal Board Cattle Compensation Advisory Committee Gippsland and Southern Rural Water Authority Dairy Food Safety Victoria Gippsland Regional Waste Management Group Institutional Biosafety Committee Glenelg Hopkins Catchment Management Authority Melbourne Market Authority Glenelg Region Water Authority Murray Valley Citrus Marketing Board Goulburn Broken Catchment Management Authority Murray Valley Wine Grape Industry Development Committee Goulburn-Murray Rural Water Authority Northern Victorian Fresh Tomato Industry Development Committee Goulburn Valley Region Water Authority Sheep and Goat Compensation Advisory Committee Goulburn Valley Regional Waste Management Group Swine Industry Projects Advisory Committee Grampians Region Water Authority Veterinary Practitioners Registration Board of Victoria Grampians Regional Waste Management Group Victorian Agricultural Chemicals Advisory Committee Highlands Regional Waste Management Group Victorian Broiler Industry Negotiation Committee Hunting Advisory Committee Victorian Strawberry Industry Development Committee Lake Mountain Alpine Resort Management Board Victorian Meat Authority Lower Murray Region Water Authority Mallee Catchment Management Authority Minister for Energy and Resources Melbourne Cricket Ground Trust (part year only) Aquaculture Fishery Committee Melbourne Parks and Waterways Commercial Abalone Fishery Committee Melbourne Water Corporation Commercial Bays and Inlets Fishery Committee Mildura Regional Waste Management Group Commercial Lobster Fishery Committee Mornington Peninsula Regional Waste Management Group Commercial Scallops Fishery Committee Mount Baw Baw Alpine Resort Management Board Electric Line Clearance Consultative Committee Mount Buller Alpine Resort Management Board Electrical Appeals Board Mount Hotham Alpine Resort Management Board Equipment Advisory Committee Mount Stirling Alpine Resort Management Board Fisheries Co-Management Council National Parks Advisory Committee Fishery Research Committee National Tennis Centre Committee Fisheries Revenue Allocation Committee North Central Catchment Management Authority Gas Appeals Board North East Catchment Management Authority Inland Fishery Committee North East Region Water Authority Licensing Appeals Tribunal (Fisheries) North-East Victoria Waste Management Group Mining and Environment Advisory Committee Northern Regional Waste Management Group Office of the Chief Electrical Inspector Parks Victoria Office of Gas Safety Phillip Island Nature Park Board of Management Inc Office of the Mining Warden Port Phillip Regional Catchment and Land Protection Board Powerline Relocation Committee Portland Coast Region Water Authority Recreational Marine Fishery Committee Reference Areas Advisory Committee Sustainable Energy Authority Victoria Royal Botanic Gardens Board Victorian Electrolysis Committee Scientific Advisory Committee Minister for Environment and Conservation Shrine of Remembrance Trust Alpine Resorts Co-ordinating Council South East Water Limited Barwon Region Water Authority South Eastern Regional Waste Management Group Barwon Regional Waste Management Group South Western Regional Waste Management Group Calder Regional Waste Management Group South West Water Authority Casey’s Weir and Major Creek Rural Water Authority South Gippsland Region Water Authority Caulfield Racecourse Committee Sunraysia Rural Water Authority Central Coast Regional Coastal Board Surveyors Board Central Gippsland Region Water Authority Timber Promotion Council Central Highlands Region Water Authority Trust for Nature (Victoria) Central Murray Regional Waste Management Group Victorian Catchment Management Council City West Water Limited Victorian Coastal Council Coliban Regional Water Authority Victorian Mineral Water Committee Committees of Management for Crown Land Reserves (various) Water Training Centre Corangamite Catchment Management Authority West Gippsland Catchment Management Authority Desert Fringe Regional Waste Management Group Western Coast Regional Coastal Board East Gippsland Catchment Management Authority Western Region Water Authority East Gippsland Region Water Authority Western Regional Waste Management Group Eastern Regional Waste Management Group Westernport Region Water Authority Ecorecycle Victoria Wimmera Catchment Management Authority Environment Conservation Council Wimmera Mallee Rural Water Authority Environment Protection Authority Yarra Bend Park Trust Environment Protection Board Yarra Valley Water Limited Falls Creek Alpine Resort Management Board Zoological Parks and Gardens Board of Victoria

Natural Resources and Environment Annual Report 141 APPENDICES (CONTINUED)

APPENDIX 10. PROGRESS ON IMPLEMENTING GOVERNMENT REFORMS

National Competition Policy Reviews of legislation

Name of Legislation Progress Achieved

Agricultural and Veterinary Chemicals Legislation Inter-Governmental review and response complete.

Agricultural Industry Development Act 1990 Review and Government response complete. Legislative amendments made in Spring 2000.

Auction Sales Act 1958 Joint review with the Department of Justice. Review and Government response complete.

Broiler Chicken Industry Act 1978 Review complete. Government response being prepared.

Crown Land Management Legislation Review complete. Government response being prepared.

Domestic (Feral & Nuisance) Act 1994 Review complete. Government response being prepared.

Environment Protection Act 1970 Review complete. Government response being prepared.

Extractive Industry Development Act 1995 Review has commenced.

Fisheries Act 1995 Review complete. Government response being prepared.

Flora and Fauna Guarantee Act 1988 Review complete. Government response being prepared.

Forests Act 1958 Review complete. Government response being prepared.

Litter Act 1987 Review complete. Government response being prepared.

Livestock Disease Control Act 1994 Review has commenced.

Meat Industry Act 1993 Review and Government response complete. An amendment Bill was introduced into Parliament in Autumn 2001.

Mineral Resources Development Act 1990 Review and Government response complete. Legislative amendments passed in Spring 2000.

Murray Valley Citrus Marketing Act 1989 Joint review with NSW complete. Government response being prepared.

National Parks Act 1975 and Part 4 of the Water Act 1994 Review has commenced.

Petroleum (Submerged Lands) Act National review, led by the Commonwealth, complete. Intergovernmental response complete.

Pipelines Act 1967 Review complete. Government response being prepared.

Plant Health and Plant Products Act 1995 Review has commenced.

Stock (Seller Liability and Declarations) Act 1993 Review has commenced.

Surveyors Act 1978 Review and Government response complete. A new Bill was introduced into Parliament in Autumn 2001.

Water Legislation Review has commenced.

Wildlife Act 1975 Review complete. Government response being prepared.

142 Natural Resources and Environment Annual Report APPENDIX 11. WATER RESOURCE ASSESSMENT PROGRAM

Background Under Section 22(1) of the Water Act 1989, the Minister is required to ensure that a continuous program of assessment of the water resources of the State is undertaken. As per Section 22(2) of the Act, this assessment program must provide for the collection, collation, analysis and publication of information about – (a) the availability of water (b) the disposal of wastewater (including trade waste, sewage and saline water) (c) the use and re-use of water resources (d) floodwaters (e) drainage and waterway management (f) water quality (including salinity) (g) in-stream uses of water (h) anything else the Minister decides is appropriate.

Section 26 of the Act also requires that a report on the water resources assessment program be included in each annual report of the Department. Major activities for 2000-01 are summarised below.

Water Availability Water Resources Assessment Monitoring Program (a) Surface Water The State’s surface water resources assessment network comprises some 261 sites across the State. Streamflows are monitored at these sites on a continuous basis on NRE’s behalf by Thiess Environmental Services. Many of these stations are shared with water authorities who require data for operational and compliance reporting purposes, and some also provide data for flood warning purposes. Along with historical data from these sites, the 261 additional station-years of data collected during 2000-01 is being made available via the Victorian Water Resources Data Warehouse (http://www.vicwaterdata.net). This site also provides summaries of flow characteristics based on the total period of record including monthly means, monthly and daily maximums and minimums at each site. (see also section on Data Warehouse below). (b) Groundwater The State’s groundwater resource assessment network comprises some 3,500 observation bores across the State. The collection and management of data from these sites is managed by Sinclair Knight Merz on behalf of NRE. Water levels at these sites are routinely monitored on a quarterly basis, and more frequent monitoring may also occur where bores are situated in Groundwater Supply Protection Areas. During 2000-01, routine maintenance of the groundwater monitoring network and data collection was continued at these network sites. A new groundwater database was designed to improve data handling and compatibility with resource allocation management arrangements. This ‘Groundwater Management System’ is currently being implemented and is expected to be functional before the end of 2001.

Surface Water Allocation and Management As part of Victoria’s water allocation program, Stream Flow Management Plans (SFMPs) are being implemented to provide agreed and equitable management of all water extraction and sufficient retained flows for the long-term environmental health of the river systems.

Presently there are three SFMPs in operation for the Merri, Gellibrand and Upper Latrobe Catchments. A further 24 are in various stages of preparation, with work during 2000-01 bringing six of these close to completion. A related important development in 2000-01 was the commencement of supply and installation of meters to monitor irrigation pumping licences throughout the State. A substantial expansion of this program is planned for 2001-02.

During 2000-01, considerable effort also went into articulating the methodology that supports the SFMP process. This included a framework for preparation of SFMPs, a guideline for assessment of farm dams, an environmental flow assessment methodology, a methodology setting precautionary limits on winter-fill diversion and a suite of technical tools for determining the impact of farm dams. Most of these documents will be available for application within the next 12 months.

Natural Resources and Environment Annual Report 143 APPENDICES (CONTINUED)

APPENDIX 11. WATER RESOURCE ASSESSMENT PROGRAM (CONTINUED)

Groundwater Allocation and Management Groundwater in Victoria is managed on a sustainable basis through the establishment of community driven plans. The process begins with the establishment of Groundwater Management Areas (GMAs), which are areas where development has already or could potentially occur. To date some 60 GMAs have been established across the State. In each instance, estimates of the sustainable yield of the aquifer have been made that are used to determine the Permissible Annual Value (PAV) that may be allocated to groundwater users. When resource commitments reach 70% of the PAV, a Groundwater Supply Protection Area (GSPA) is set up, and community driven Groundwater Management Plans are developed.

During 2000-01, NRE coordinated the establishment of 12 GSPAs and the development of management plans for these areas, bringing the total number of GSPAs established to 16. The plans will facilitate the trading of water entitlements where the current allocations have reached the sustainable yield of the aquifers. The management plans include requirements for the collection of usage data and improvements to groundwater monitoring and other accounting procedures.

Disposal of Waste Water Regional water authorities are required to provide a performance report on wastewater disposal, as part of the Report of Operations in their annual report. The performance report includes indicators related to financial, service delivery and environmental performance. Specific wastewater indicators are prepared for reliability of collection services, quality of disposal and management. The annual reports are tabled in Parliament.

There is also further analysis, conducted within the Department, on data submitted by regional water authorities concerning performance of their wastewater treatment plants. The analysis focuses on compliance with Environment Protection Authority requirements as set out in discharge licences. Findings are reported to the portfolio Minister in a general briefing that covers matters pertaining to the corporate planning process.

Flood Monitoring Data on major floods that have occurred in Victoria since approximately 1900 is stored in a centralised NRE database. The database includes flood heights and estimated return periods. Catchment management authorities use the information in developing their floodplan management strategies, and local councils for their planning schemes and emergency management plans.

Major floods occurred in October and November 2000 in the Upper Loddon River, Bendigo Creek, Axe Creek and McKivor Creek catchments. The North Central Catchment Management Authority undertook a survey of the extent of these floods and the data obtained will be included in the flood database.

Drainage The following are key achievements of Victoria’s drainage programs during 2000-01:

• The Shepparton Irrigation Region’s drainage strategy has been reviewed in partnership with the local community in relation to Government policy directions, particularly with providing positive environmental outcomes. A final draft Strategy is expected by March 2002. It will underpin annual infrastructure investment into the region of approximately $5 million per annum. • A draft drainage strategy for the Loddon-Murray irrigation areas including a detailed proposal for the Koondrrok-Benjeroop was forwarded to NRE for consideration. This is a major achievement for the North Central Catchment Management Authority and the local communities. Implementation of the strategy will address significant environmental and social impacts from poor drainage and waterlogging, which has effected the area for over 30 years. • An independent review of the environmental aspects of Victoria’s drainage programs in the Northern irrigation areas was completed. The conclusion is that the programs are performing at a high level in providing environmental outcomes and that construction and operational aspects are ‘best practice’. NRE will be responding to the recommendations by September 2001.

Water Quality

Surface Water Quality Monitoring Program Water quality monitoring is conducted at 108 sites across the State on a monthly basis for a range of physico-chemical water quality parameters including nutrients and salinity. Data from the monitoring network is made publicly available from the Victorian Water Resources Data Warehouse. Analyses of water quality data were included in the National Land and Water Audit (see below).

The Victorian Water Quality Monitoring Annual Report, containing water quality information and maps was published and distributed to regional stakeholders in April 2001.

144 Natural Resources and Environment Annual Report APPENDIX 11. WATER RESOURCE ASSESSMENT PROGRAM (CONTINUED)

Risks to Groundwater Quality During 2000-01 a statewide collection of maps was completed which shows the risk to groundwater quality from contamination.

National Land and Water Resources Audit A detailed assessment of the availability and quality of surface and groundwater resources across Victoria was completed in 2000-01, as required for the National Land and Water Resources Audit (NLWRA). Reporting requirements in relation to the availability of resources included estimates of ‘total available water’, ‘sustainable yields’ and current levels of allocation and usage of resources for defined surface and groundwater management areas. Detailed information was also provided on development potential and on existing programs and processes to ensure the sustainable management. Water quality was characterised in terms of the frequency of exceedance of water quality guidelines for nutrients, nitrogen, phosphorus, salinity, turbidity, and acidity. Trends in these parameters were also reported.

Results for Victoria are summarised in the publication Australian Water Resources Assessment 2000 published in March 2001 by the NLWRA while further detail is contained in the Australian Natural Resources Atlas. This is available via the Web – see http://audit.ea.gov.au/ANRA and refer to the ‘Victoria Water Resource Assessment 2000 Report’ and ‘Victoria Water Resource Assessment 2000 Technical Report’. Individual reports for the various surface water and groundwater management areas are also available on the site.

Victorian Water Resources Data Warehouse The Victorian Water Resources Data Warehouse (http://www.vicwaterdata.net) was launched in June 2000 and contains current and historical information on stream flow, water quality and river health for the whole of Victoria. During 2000-01, the Warehouse was successful in servicing over 16,000 requests for water resources data, a significant achievement as, prior to world wide web availability an average of only 400 requests per year were received for these data.

During 2000-01, in addition to the updating of basic data, the results of an assessment of river health for 950 river reaches across the State was added to the Warehouse. The assessment was based on the determination of ‘Index of Stream Condition’ which covers stream hydrology, physical form, streamside zone condition and water quality for each river reach.

APPENDIX 12. AVAILABLE INFORMATION

In accordance with the directions of the Minister for Finance under the Financial Management Act 1994, a range of information has been prepared in relation to activities during the financial year. The information is listed below and is retained by the accountable officer and available to Ministers, Members of Parliament and the public on request.

• Details of shares held by a senior officer as nominee or held beneficially in a statutory authority or subsidiary • Details of changes in prices, fees, charges, rates and levies charged by the Department • Details of any major external reviews carried out on the Department • Details of overseas visits undertaken including a summary of the objectives and outcomes of each visit. • Details of major promotional, public relations and marketing activities undertaken by the entity to develop community awareness of the entity and the services it provides (Refer P74) • Details of legislation managed by NRE Portfolio Management • Details of legislation managed by NRE Portfolio Management. • A list of committees sponsored by the Department, the purposes of each committee and the extent to which the purposes have been achieved. • Details of publications produced by NRE about NRE’s activities and where they can be obtained (Refer P75) • Declarations of pecuniary interests have been duly completed by all NRE relevant officers (Refer P58)

Natural Resources and Environment Annual Report 145 GLOSSARY

Acronyms used in this report

AAPG American Association of Petroleum Geologists AAV Aboriginal Affairs Victoria ADC Aquaculture Development Committee AQIS Australian Quarantine Inspection Service AWU Australian Workers’ Union BEA Business Exit Assistance C&R Conservation and Recreation CAMS Catchment Activity Management Systems CAW Catchment and Water CFA Country Fire Authority CMA Catchment Management Authority CPSU Community and Public Sector Union DoI Department of Infrastructure DTF Department of Treasury and Finance ECC Environment Conservation Council ECV Electronic Conveyancing Victoria EMS Environmental Management System EPA Environment Protection Authority EPD Energy Policy Division FMA Forest Management Area FRC Full Retail Contestability FS Forests Service FSC Forest Science Centre FTE Full time employment GIS Geographic Information Systems GMA Groundwater Management Areas GMO Genetically Modified Organisms GPS Global Positioning Systems GSPA Groundwater Supply Protection Area GVF Growing Victoria’s Forests ISC Index of Stream Conditions M&P Minerals and Petroleum MaFRI Marine and Freshwater Resources Institute MPW Melbourne Parks and Waterways MRDA Mineral Resource Development Act NA Not Applicable NAP National Action Plan NEM National Electricity Market NHT Natural Heritage Trust NLWRA National Land and Water Resources Audit NM New Measure NRE Department of Natural Resources and Environment OCS Offshore Constitutional Settlement OGTR Office of the Gene Technology Regulator OH&S Occupational Health and Safety PAAC Premier’s Aboriginal Advisory Council PAV Permissible Annual Volume PDR Plan, Deploy and Review PFF Parks, Flora and Fauna PPS Performance Planning Scheme RFA Regional Forest Agreement RFL Recreational Fishing Licence SAC Scientific Advisory Committee SCL State Chemistry Laboratory SEAV Sustainable Energy Authority of Victoria SES State Emergency Service SFMP Stream Flow Management Plans SFRI Statewide Forest Resource Inventory TBL Triple Bottom Line VAHIS Victorian Aboriginal Heritage Information System VGPB Victorian Government Purchasing Board VGS Victorian Greenhouse Strategy VIMP Victorian Initiative for Minerals and Petroleum VPS Victorian Public Service VRADP Victorian Regional Aquaculture Development Program VSCO Vendor Statement Certificates Online WARM Women in Agriculture and Resource Management

146 Natural Resources and Environment Annual Report INDEX

Page Page

A L Aboriginal Reconciliation and Respect Output Group 52 Land Management and Information Output Group 32 Acronyms 146 Legislation 145 Acts administrated 145 Library 75 Addresses and contact information, major locations 147 Locations, major 148 Agriculture Output Group 42 Appendices Contents 126 M Merit and equity 68 Audit Standing Committee 59 Minerals and Petroleum Output Groups 17 Available Information, compliance 145 Ministers IFC Awards 70 O C Occupational Health and Safety 67 Catchment and Water Output Group 46 Ombudsman, complaints investigation Code of Conduct 69 Organisational Chart 61 Communications 74 Output Groups 16 Compliance Index 127 Conservation and Recreation Output Group 36 P Consultancies 138 People 65 Corporate Governance 58 Policy 72 Customers and stakeholders 14 Profile 14 Promotional activities 74 D Publications 75 Development and Training 66 Purpose, Strategic Priories, Values 2 E Energy Industry Reform Policy 56 R Reconcilliation 52 Environmental Management 73 Recruitment 68 Executive Management Team 62 Research and Development 76 F Risk Management 59 Finance Report 81 Finance Summary 12 S Secretary’s Report 4 Finance and Planning Standing Committee 60 Senior Staff List 64 Fire Management Output Group 25 Services 15 Fisheries Output Group 28 Strategic Priorities 3 Forest Management Output Group 20 Statement of Policy 58 Freedom of Information 139 T G Triple Bottom Line 73 Gene Technology 80 Gene Technology Standing Committee 60 W Greenhouse Policy 56 Workplace relations 66 Grievance resolution 69 Workforce statistics 68 Glossary 147 Y H Year in Review 6 Human Resources Standing Committee 59

I Institutes, NRE Research and Development 76 Industrial Relations 66

Natural Resources and Environment Annual Report 147 MAJOR LOCATIONS AND CONTACT INFORMATION

Head Office Gippsland Regional Office Northern Irrigation 8 Nicholson Street 71 Hotham Street Regional Office East Melbourne Victoria 3002 Traralgon Victoria 3844 Ferguson Road Phone: (03) 9637 8000 Phone: (03) 5172 2111 Tatura Victoria 3616 Facsimile: (03) 9637 8148 Facsimile: (03) 5172 2100 Phone: (03) 5833 5222 Website: www.nre.vic.gov.au Facsimile: (03) 5833 5299 North East Regional Office Melbourne 35 Sydney Road Port Phillip Regional Office 240 - 250 Victoria Parade Benalla Victoria 3672 30 Prospect Street East Melbourne Victoria 3002 Phone: (03) 5761 1611 Box Hill Victoria 3128 Phone: (03) 9412 4011 Facsimile: ( 03) 5761 1628 Phone: (03) 9296 4400 Facsimile: (03) 9412 4803 Facsimile: (03) 9890 0075 North West Land Registry Regional Office South West Regional Office 283 Queen Street Cnr Midland Hwy and Taylor Street Cnr Mair and Doveton Street Melbourne Victoria 3000 Bendigo Victoria 3550 Ballarat Victoria 3350 Phone: (03) 9603 5444 Phone: (03) 5430 4444 Phone: 5333 6782 Facsimile: (03) 9603 5556 Facsimile: (03) 5448 4982 Facsimile: 5333 6713

148 Natural Resources and Environment Annual Report This publication is copyright. Apart from any fair dealing for the purpose of private study, research, criticism or review as permitted under the Copyright Act 1968, no part may be reproduced, copied, transmitted in any form or by any means (electronic, mechanical or graphic) without the prior written permission of the State of Victoria, Department of Natural Resources and Environment. All requests and enquiries should be directed to the Copyright Officer, Library Information Services, Department of Natural Resources and Environment, 5/250 Victoria Parade East Melbourne, Victoria 3002.

General Disclaimer This publication may be if assistance to you but the State of Victoria and its employees do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in the publication. Department of Natural Resources and Environment Head Office 8 Nicholson Street East Melbourne Victoria 3002 Australia Phone: (03) 9637 8000 Facsimile:(03) 9637 8148 Website www.nre.vic.gov.au