Department of Innovation, Industry and Regional Development

Department of Innovation, Industry and Regional Development This annual report covers the Department of Innovation, Industry and Regional Development as an individual entity. Published by the Department of Innovation, Industry and Regional Development, Melbourne Victoria. October 2008 Annual Report 2007–08 This report is also available on the internet at: www.diird.vic.gov.au © Copyright State of Victoria 2008 This publication is copyright. No part may be reproduced except in accordance with the provisions of the Copyright Act 1968. Authorised by the Victorian Government Department of Innovation, Industry and Regional Development 121 Exhibition Street Melbourne VIC 3000 Postal Address PO Box 4509 Melbourne VIC 3001 Telephone: (03) 9651 9999 Facsimile: (03) 9651 9962 www.diird.vic.gov.au Designed and produced by: Publicity Works Printed by: Impact Digital The paper used in this report is accredited to both ISO 14001 and Eco-Management and Audit Scheme (EMAS) standards ensuring environmentally sustainable and responsible processes through all stages of material sourcing and manufacture. EMAS standards include third party auditing, public reporting and continual improvement programmes. Contents e Secretary’s foreword nt2 coOur Ministers 4 Economic context 5

Role and structure of the Department 6

Organisational chart 10

Governance arrangements 12

Strategic objectives 13

Develop 14

Connect 32

Promote 44

Shape 52

Strengthen 60

Financials 65

Appendices 116

1 Department of Innovation, Industry and Regional Development Annual Report 07–08 Secretary’s foreword or This has been a signifi cant year for the Department of Ensuring that 90 per cent of young people in Victoria w Innovation, Industry and Regional Development. will successfully complete Year 12 or its eeducational equivalentr by 2010 Victoria continues its leadership over the National Reform fAgenda for the vocationalo education and training system, In 2007, 86.1 per cent of Victorians aged 20–24 completed following the April 2008 release of the Securing our Future Year 12 or its educational equivalent, which is above the Economic Prosperity discussion paper. The paper’s focus 2007 national average of 83.5 per cent and represents an was on the delivery of vocational education and training to increase from 81.8 per cent in 2000. high-need, high-priority industries and occupations. And Increasing the level of participation in vocational Victoria’s $21b biotechnology sector is now set for further education and training of adults aged 25–64 years expansion, following announcement of the 2007 Victorian Biotechnology Strategic Development Plan. In 2007, 201,911 people aged 25–64 years enrolled in vocational education and training (VET) in Victoria, and Throughout 2007–08, the Department made a major Victoria’s rate of adult participation in VET continues to be contribution to the economic growth and development higher than any other state. goals of the Government’s Growing Victoria Together (2005) policy: Information and Communications Technology (ICT) Helping generate more and better jobs across Victoria In 2007–08, more than 250 grants through the ICT Trade Events and Export Assistance Program enabled Victorian The Department’s efforts resulted in the creation of 8,212 ICT companies to promote their capabilities in over Full Time Equivalent (FTE) jobs throughout Victoria. 25 different countries, generating projected exports Increasing Victoria’s productivity and competitiveness of more than $220m. More than 7,000 small businesses benefi ted from practical Victoria’s ICT revenue at 30 June 2007 was $24.4b, after guidance through the Department’s Grow Your Business, 21 per cent growth between June 2004 and December Small Business Mentoring Program and Under New 2007. Annual revenue from overseas operations of Victorian Management workshops. More than 300 small businesses ICT businesses and exports of ICT equipment and services were assisted with planning assistance through My totals approximately $1.8b per year. Business My People. International Education Meanwhile, the $13.2m four-year Returning to Earning International education continues to be Victoria’s leading program is helping to address the skills and labour needs of service export industry, contributing $3.5b to the economy Victorian employers, providing 12,000 grants to help per annum and employing thousands of Victorians across parents upgrade their skills for a return to work. The all sectors of our world-class education and training system. Workforce Participation Partnerships program has already benefi ted more than 1,500 Victorian businesses and 3,000 In 2007, Victoria attracted 27,000 more international student disadvantaged job-seekers since 2005. enrolments, a massive 25 per cent increase over the previous year, bringing the number of enrolments to a record Obtaining a greater share of national business 133,000, or 29 per cent of the national total. investment for Victoria Tourism and Major Events During the year, the Department facilitated more than $3.25b in confi rmed investments, not including major International visitors to Victoria accounted for $3.1b in visitor infrastructure projects and construction projects. expenditure for the year ending December 2007, an increase of 14.6 per cent over the previous year. And, in Helping foster increased exports towards $35 billion 2007, domestic visitor expenditure in Victoria increased by by 2015 9.6 per cent over the previous year to $11.8b. Domestic In 2007–08, the Department’s efforts resulted in more than visitors spent $5.9b in regional Victoria, a 12.8 per cent $1.35b in exports facilitated and imports replaced. increase over the previous year.

2 or wIn 2007, Victoria attracted over 324,000 international Screen Industry evisitors to major events. The Victorian screen industry recorded its largest r Investment production expenditure ever of $262m in 2007–08. This is o Investment facilitation services were provided to 280 an 80 per cent increase over the previous 12 months and f it created 7,862 full-time employment opportunities in the projects, including major infrastructure projects and construction projects, with a total capital expenditure of industry during the year. $24.8b and generating, at a minimum, 10,900 jobs. Government Information Services Regional and Rural Development During 2007–08, the Citizen Access and Transformation In regional Victoria during 2007–08, the Department’s business units received 2.5 million web visits via Vic Online, efforts fostered economic and industry growth, and Information Victoria and eGov websites; answered 6,000 investment attraction which led to $1.2b in regional information queries at the Information Victoria counter and investments, 2,766 new jobs and $669m in exports. 95,300 information queries via the Information Victoria contact centre. They also sold 75,200 government Science and Technology publications and generated $1.25m in publication revenue. The new CSL Biopharmaceutical Formulation Centre and During the 2007–08 year the Department was restructured the Victorian Cancer Biobank were launched in 2007, both to enable a greater focus on international coordination, assisted by grants through the Science, Technology and sector development, industry liaison and regional Innovation (STI) Initiative. In 2007–08, more than 400 development, while achieving a more consistent approach businesses and researchers accessed infrastructure to delivering programs and services for Victoria. funding through the STI Initiative. The year ahead presents major new challenges for Major Projects Victoria. I am confi dent the Department will succeed in The $10.6m Hepburn Springs Bathhouse redevelopment converting these challenges into economic benefi ts for all was completed in May 2008, and the $1.4b Melbourne Victorians, applying the same professionalism and Convention Centre development became the fi rst building creativity that has characterised the Department’s of its kind in Australia to be awarded the Australian Green dedicated service throughout 2007–08. Building Council’s six-star Green Star rating for environmentally sustainable design.

Howard Ronaldson Secretary

3 Department of Innovation, Industry and Regional Development Annual Report 07–08 eOur Ministersconom

The Hon. Theo The Hon. Jacinta Allan The Hon. Joe Helper The Hon. Tim Holding Theophanous MLC MP MP MP Minister for Industry and Minister for Skills and Minister for Small Minister for Tourism and Trade Workforce Participation Business Major Events Minister for Information Minister for Regional and and Communication Rural Development Technology Minister for Major Projects

The Hon. Rob Hulls The Hon. Gavin MP Jennings MLC Minister for Industrial Minister for Innovation Relations

Our Parliamentary Secretaries

The Hon. Kaye The Hon. Jaala Pulford The Hon. Marsha Darveniza MLC MLC Thomson MP Parliamentary Secretary Parliamentary Secretary Parliamentary Secretary for Regional and Rural for Industrial Relations for Industry and Trade Development 4 Economic contextm Victoria enjoyed increased employment,o population Exports of goods and services rose for the fourth growth, investment and exports against a backdrop of consecutive year despite the high level of the Australian nlower growth in the world economy and within Australia. dollar. The largest increases in export sales occurred in o The gains made during last year add to those made the automotive and dairy sectors of the economy. c previously in the decade. Victoria’s Gross State Product The global economy is entering a major slowdown after e (GSP) growth was the highest of the non-resource several years of strong growth. Many advanced states over the eight years to 2006–07. economies are close to, or are moving into, recession. Victorian employment increased by 52,300 over the Growth in emerging economies also is weakening. course of 2007–08. The Victorian unemployment rate Uncertainty is exceptionally high, and there are major ended the year at 4.6 per cent. The unemployment rate downside risks. in country Victoria was 4.6 per cent in the June quarter The International Monetary Fund has noted that a of 2008, down 0.7 percentage points over the year. recovery is not yet in sight, and is likely to be gradual Strong population growth continues, driven by overseas when it comes. Therefore, the economic environment migration. Victoria recorded its greatest absolute and over the next year or two will not be as conducive to percentage increase in population in a calendar year in growth within Australia and in Victoria as it has been in 2007 in at least 35 years. Victoria recorded its greatest recent years. number of births since 1973 and the largest annual increase in net overseas migration in at least 35 years. Victoria’s regional population grew by 1.1 per cent in 2006–07, more than double the growth recorded in 2001–02, and the third-highest growth among the states. Capital expenditure by business and government reached a record high during 2007–08. Major building projects underway include the Royal Children’s Hospital, the Melbourne Rectangular Stadium and the Melbourne Convention Centre. Major engineering construction projects underway include the channel deepening project, the Westgate-Monash freeways improvement, the Geelong Ring Road and development of the Kipper gas ﬁ eld in Bass Strait.

5 Department of Innovation, Industry and Regional Development Annual Report 07–08 Role and structure of the Department str The Department of Innovation, Industry and Regional Development (DIIRD) is the Victorian Government’se lead agency for economic and regional development. It has 10 organisational divisionsl and three associated bodies with wide-ranging responsibilities, outlined below. l roThe Department develops and implements a diverse range of programs, initiatives and projects designed to attract and facilitate investment, encourage exports and industries, foster skills, stimulate innovation, and promote Victoria nationally and internationally. DIIRD works closely with business, other government agencies and the community to achieve the Government’s major economic development goals of increased investment, exports and high-quality jobs. During 2007–08, machinery-of-government changes resulted in the transfer to DIIRD of Citizen Access and Transformation, Workforce Participation and Major Projects Victoria. Division Key responsibilities Policy and Coordination Provides strategic policy, planning, coordination and Provides the strategic intelligence function for the Ministerial services to and for the Department Department and: • leads and coordinates the Department’s research and policy agendas and activities • drives the integrated planning cycle, including preparation of the Department’s strategic and business plans, the annual budget strategy and evaluation framework, and provides and coordinates Ministerial support to all DIIRD Ministers including through the Cabinet and Parliamentary processes • researches and develops industry policy • provides expert advice on and coordinates the Department’s input to the Victorian Government’s climate change agenda.

Investment and Major Projects Attracts and facilitates investment into the Has primary responsibility for: State of Victoria. • recruiting and facilitating investment projects, and Delivers projects which achieve exceptional supporting growth and excellence in Victoria’s economic, social and environmental outcomes for manufacturing and trade-exposed service industries the Victorian community • facilitating investment • assisting economic development in rural and regional Victoria • delivering design and construction projects, and property development projects • managing public private partnership projects operating under the Partnerships Victoria framework • providing ﬁ nancial, administration and portfolio services.

6 str leDivision Key responsibilities ol Industry and Trade r Develops sustainable, growth-oriented industries Has primary responsibility for: through sector engagement and investment attraction, • industry development and coordinated sector along with export development initiatives and assistance engagement across the Department • generating new investment leads and attracting international investment • attracting strategic industry projects as well as domestic and international investments in Victoria • driving and coordinating export development initiatives and programs. Skills Victoria Provides strategic advice and analysis of Victoria’s Has primary responsibility for: skill needs, and acts as the system-manager for the • developing strategic advice and analysis of Victoria’s vocational education and training sector skill requirements • providing strategic leadership, legislation and other support for the development of the vocational education and training (VET) system • providing legislative/regulatory policy advice for the higher education sector, including advice on borrowings and capital acquisitions • planning, purchasing and monitoring of the services offered by TAFE institutions and private registered training organisations (State and Commonwealth Government funding, including capital funding) • administering VET regulatory frameworks • delivering the apprenticeship and traineeship program. Regional Development Victoria Facilitates economic and community development in Has primary responsibility for: regional and rural Victoria to create a prosperous and • creating vibrant and dynamic regional communities and growing provincial Victoria economies through the facilitation of new jobs, investments and exports • facilitating new investment in regional and rural Victoria through infrastructure funding for strategic projects • delivering programs and information to help grow a robust and sustainable business economy and strengthen communities throughout provincial Victoria.

7 Department of Innovation, Industry and Regional Development Annual Report 07–08 Division Key responsibilities Innovation and Technology Advises on and implements the Government’s policy, Has primary responsibility for: r programs and other initiatives supporting research, • creating an environment in the State which supports t innovation and commercialisation to drive sustainable research, innovation and commercialisation s and enduring economic growth • supporting sector engagement and investment attraction in technologyl industries e l • helping the Victorian economy to capture economic o growth through innovation and the development of r new, emerging and transformative technologies • developing strategies for emerging technologies • supporting longer term major strategic innovation precinct development • supporting and advocating research in higher education to enhance Victoria’s innovation capabilities. Industrial Relations Victoria Works to build fair and productive workplaces, Has primary responsibility for: ensuring that businesses and the public sector • developing and managing local and international have access to a skilled and fl exible workforce initiatives designed to increase the pool of available skilled employees. • strengthening industries and communities by increasing workforce participation, particularly among people with signifi cant barriers to employment • overseeing collective bargaining in the public sector, administering specialised workplace legislation and managing policy and programs which encourage cooperative workplace cultures and better work and family life balance for employees. International Coordination Responsible for the whole-of-Victorian-Government Has primary responsibility for: framework guiding Victoria’s overseas relationships, • coordinating whole-of-Government international as set out in the Premier’s Seizing Global Opportunities business statement of October 2007 • advising on and communicating the Government’s key objectives and priorities, through policy and the annual Premier’s Directive • managing the network of Victorian Government Business Offi ces overseas, including the appointment and performance of the Commissioners for Victoria • advising the Government on major international developments impacting on Victoria • coordinating international travel, including high-level contacts and Ministerial visits • coordinating business leveraging from major events in Victoria. Brand, Communications and Tourism Promotes Victoria as a great place to live, work, Has primary responsibility for: invest, visit and learn, and markets the DIIRD brands • developing communications and marketing policy and and programs strategy for all DIIRD brands • delivering communications and marketing activities across all divisions. These marketing activities include campaigns, product development, events and e-marketing • developing Victoria as a premium tourist destination for Australian and international travellers. • international education 8 Division Key responsibilities Corporate Services and Development Develops the organisation and provides systems, Has primary responsibility for: r services and infrastructure to support line divisions in • people,t including organisational development their ability to delivers core services to clients • fi nance, including grants administration and procurement le • information management and technology, including l records management o • business and advisory services, including legal and risk, r business improvement and facilities management.

Agency Key responsibilities

Innovation Economy Advisory Board • provides independent and informed strategic advice and support to the Government on developing and promoting Victoria as a leading innovation economy. Ofﬁ ce of the Victorian Small • promotes a genuinely competitive and fair business Business Commissioner environment for Victorian small businesses through mediation, the investigation of complaints and enforcement of industry codes of practice • ensures Government practices are business-friendly. Workplace Rights Advocate • provides information on workplace rights to employees and employers • promotes the fair industrial treatment of employees • investigates illegal, unfair or otherwise inappropriate industrial relations practices in Victoria • monitors and reports on industrial relations practices and their impact in Victoria to Parliament.

Structural adjustments continued after 30 June 2008, and the most up-to-date information on the Department’s organisational structure can be found on www.diird.vic.gov.au

9 Department of Innovation, Industry and Regional Development Annual Report 07–08 Organisational chart r Minister for Minister for Minister for t Industry and Trade: Minister for Information & Regional and Rural Development Small Business s Communication Technology: Minister for Major Projects Minister for Skills & Workforce Joe Helper Theo Theophanous Participationle rolJacinta Allan

Australian Grand Prix Corporation Small Business Emerald Tourism Railway Board Commissioner Federation Square Pty Ltd Mark Brennan Film Victoria Secretary Melbourne Convention & Exhibition Trust Howard Ronaldson Prince Henry’s Institute of Medical Research TAFE Institutes Victorian Major Events Corporation Workplace Rights Victorian Skills Commission Advocate Tony Lawrence

Corporate Services & Policy and Coordination Skills Victoria Innovation & Technology Industry & Trade Development Deputy Secretary Deputy Secretary (Ag) Deputy Secretary Deputy Secretary Deputy Secretary Jane Niall Phil Clarke Randall Straw Ben Foskett Marion van Rooden

Business & Advisory Strategic Planning & Training Operations Science & Technology Industry Partnerships Services Ministerial Services Programs Skills Funding Industry – Investment Finance Strategic Policy Innovation & Technology Industry – Exports Skills Policy Development & Capabilities Industry Information Management & Climate Change Coordination Innovation & Technology Technology Industry Policy Policy People Services

10 r Minister for Minister for Minister for tParliamentary Secretary Industrial relations Tourisms and Major Events Innovation for Industry & Trade rolleRob Hulls Tim Holding Gavin Jennings Marsha Thomson

Parliamentary Secretary for Regional & Rural Audit Committee Development Kaye Darveniza

Parliamentary Secretary Citizen Access & for Industrial Relations Transformation Jaala Pulford Jane Treadwell

International Regional Development Brand, Communications Industrial Relations Investment & Major Coordination Victoria: & Tourism: Victoria Projects Deputy Secretary CE/Deputy Secretary CE/Deputy Secretary Deputy Secretary Deputy Secretary David Hanna Justin Hanney Greg Hywood Tim Lee Alf Smith

International Coordination Delivery Executive Services Workforce Participation Major Projects Ofﬁ ce Promotion & Development Marketing Operations Invest Assist VGBO Commissioners x 7 Industry Investment Tourism Victoria Public Sector Infrastructure Strategy & Policy Workplace Policy & Small Business Strategic Communications Innovation Brand Victoria

This chart does not refl ect structural adjustments made after 30 June 2008. To see the most up-to-date information on the Department’s organisational structure, go to: www.diird.vic.gov.au 11 Department of Innovation, Industry and Regional Development Annual Report 07–08 Governance arrangements a Governance is the system by which organisations are n Audit Committee r directed and controlled, providing the foundations for The Audit Committee is an independent body sound decision making and accountability. DIIRD’s e established in accordance with the Financial governance framework: v Management Act 1994. Its main responsibilities are to • sets out the processeso for developing organisational oversee the regular review of risk-management activity gstrategy and direction and key systems of internal control, including internal • ensures compliance and accountability and external audit. • defi nes structures and relationships The committee operates under an approved charter and comprises an Independent Chair, three independent • outlines performance monitoring and review members and a senior executive from the Department. processes. Members of the 2007–08 DIIRD Audit Committee were: The Secretary, as Head of the Department, is • Stewart Leslie, Causeway Consulting Pty Ltd accountable to the six DIIRD Ministers for governance of (Independent Chair) the Department. The Strategy and Management Team and other governance or management committees • Anne Jackson, Project Manager, National Australia assist the Secretary to fulfi l his stewardship and Bank (Independent Member) leadership roles. Governance arrangements are • Sharon Miles, Consultant, Spencer Stuart continuously reviewed for their appropriateness and (Independent Member) effectiveness. Core elements of governance at DIIRD are • Merran Kelsall, Independent Director (Independent outlined below. Member) Strategy and Management Team • Ben Foskett, Deputy Secretary, Industry and Trade. The Strategy and Management Team consists of the Secretary and Deputy Secretaries and operates as the organisation’s executive decision-making body to provide leadership for DIIRD. The Strategy and Management Team meets weekly and is responsible for: • determining the Department’s strategic direction, consistent with Government policy • appropriately resourcing the Department’s activities • building a high-performance culture • actively managing relationships with stakeholders.

12 Strategic objectives a nDIIRD’s strategies and plans to foster economic Overview r development in Victoria, include: eDIIRD plays a leading role in delivering the Government’s v economic vision of a dynamic, innovative and Science, Technology & Innovation Initiative: Second sustainable economy in which business is encouraged Generation (2002) o to grow. Opening Doors to Export (2004) g Towards this vision, we work with business and the State of Design – Outlining the future directions of community to boost productivity, exports, investments, design in Victoria (2004) visitation and jobs. To do this effectively, the Department takes a whole-of-Victorian Government approach and Victorian Government ICT Industry Plan 2005–2010 has a number of key objectives which support the Broadband Framework – Pathway to the Future (2005) Government’s vision for Victoria, outlined in the Growing Moving Forward: Making Provincial Victoria the Best Victoria Together (2005) statement. Place to Live, Work and Invest (2005) DIIRD supports and contributes to Whole-of- Moving Forward: Update, The Next Two Years 2008– Government strategies, plans and initiatives. 2010 (2008) Victorians: Brilliant Ideas. Brilliant Future – Innovation Victoria’s Spa and Wellness Tourism Action Plan Statement (2002) 2005–2010 Building Tomorrow’s Businesses Today (2002) 10–Year Tourism and Events Industry Strategy (2006) Victoria: Leading the Way – Economic Statement (2004) Healthy Futures: Delivering better health, research and Our Environment Our Future – Victoria’s Environmental jobs for Victorians. The Victorian Life Sciences – Sustainability Framework (2005) Statement (2006) Maintaining the Advantage: Skilled Victorians (2006) Ministerial Statement on Manufacturing and Industry Policy (2006) Time To Thrive – Small Business Statement (2006) Safer Fairer Workplaces (2006) Driving Growth in the Victorian Biofuels Industry (2007) Victorian Biotechnology Strategic Development Plan (2007) The Department’s key objectives are to: • Develop better skilled, more productive and innovative people, businesses and industries • Connect Victorians and Victorian businesses to other local, national and international businesses and markets and governments • Promote Victoria as a great place to live, work, invest, visit and learn • Shape the economic development policy agenda • Strengthen Departmental capability. The following sections reﬂ ect the Department’s progress and achievements under each of these overarching objectives.

13 Department of Innovation, Industry and Regional Development Annual Report 07–08 14 better skilled, more productive and innovative people, business and industries

DIIRD works to develop the skills of Victorians to Programs and services are delivered to the enhance the productivity of industry and Victorian community through: business. DIIRD delivers programs that support • 18 TAFE institutions (including four TAFE divisions and strengthen business leadership and within universities) capacity, and the Department continues to • 1,345 registered providers of vocational education foster innovation capability and performance. and training (registered training organisations), including 119 schools involved with VET programs Skills • 16 industry training advisory bodies Strategic, responsive skills development is vital to • 9 public universities and 59 approved providers of Victoria’s continuing economic success and to the higher education (which includes 5 TAFE institutions). future prospects of all Victorians. The education and skills training provided through Throughout the 2007–08 fi nancial year, the Department these organisations includes: has continued implementation of the 2006 Ministerial Statement Maintaining the Advantage: Skilled Victorians • entry or certifi cate-level training, including – a four-year $241m investment in skills. Through the apprenticeships and traineeships Statement, a range of policy reforms and investments • courses in basic literacy and numeracy are targeted at increasing productivity and workforce • basic preparation for work participation in Victoria’s labour force. • advanced vocational training, including training for In 2008, following the previous year’s move of the skills paraprofessionals portfolio into DIIRD, the Government established the new training and skills development agency, Skills • undergraduate and postgraduate degrees and other Victoria, replacing the former Offi ce of Training and programs. Tertiary Education. In 2007–08, the regulation of TAFE institutions and registered training organisations was managed by the Victorian Registration and Qualifi cations Authority (VRQA). The Victorian Skills Commission (VSC) had responsibility for the allocation of funding for vocational education and training and regulation of the Victorian apprenticeship and traineeship system. The VSC and VRQA are independent statutory authorities, reporting separately to Parliament. Their annual reports provide additional information relating to training and tertiary education services.

Training is outstanding at Kangan Batman TAFE – winner of the 2007 Victorian Large Training Provider of the Year.

15 Department of Innovation, Industry and Regional Development Annual Report 07–08 Skills Victoria leads the Victorian Government’s efforts TAFE and Adult and Community Education to deliver training that ﬁ lls skills gaps, increases In 2007, TAFE institutions, Adult and Community productivity and raises workforce participation levels. Education (ACE) and private registered training Skills Victoria, incorporating the Training Operations, organisations (RTOs) delivered 125.9 million student p Skills Funding and Innovation, and Skills Policy contact hours of training and further education Development and Coordination branches, works across (excluding non-VET activity) to approximately lo the Department to deliver a skills system focused on 509,600 students. economic growth, and on increasing high-quality e Government-funded delivery accounted for over employment opportunities for all Victorians. v 84.2 million (66.9 per cent) of the reported contact To ensure that the State’s skillse system is able to hours. In 2007, TAFE institutions delivered 65.7 million drespond quickly and effectively to the constantly evolving government-funded student contact hours (78 per cent needs of industry and the competitive demands of the of the total), with the remainder delivered by ACE global economy, the Victorian Government is initiating a (13.4 per cent) and private providers (8.6 per cent). suite of ambitious reforms that will equip the vocational Of the government-funded student contact hours education and training (VET) system for the 21st delivered in 2007, 23.7 million (28.2 per cent) were Century. delivered to apprentices and trainees; TAFE institutions The reforms aim to increase the capacity of our VET delivered 13.7 million of those contact hours (58 per system to train thousands more students and to deliver cent), with the remainder delivered by ACE (4 per cent) the higher-level skills that our industries need. and private providers (38 per cent). Between 2006 and 2007, the overall level of delivery to apprentices and Delivered training trainees increased by over 330,000 hours (1.4 per cent). As delegated by the Victorian Skills Commission, Skills In addition to government-funded delivery, in 2007, Victoria is responsible for purchasing publicly funded TAFE institutions and ACE organisations delivered vocational education and training (VET), for developing 35.5 million and 3.0 million student contact hours, the Victorian higher education and VET sectors, and for respectively, of fee-for-service vocational and further marketing Victorian education to international markets. education. RTOs in receipt of government funding report their fee-for-service activity to Skills Victoria. In 2007, private RTOs reported nearly 3.2 million student contact hours delivered in fee-for-service activity.

PACCAR Australia, which designs and builds Kenworth trucks, won the 2007 Victorian Employer of the Year Award for outstanding provision of employee training.

16 VET Student Contact Hour (SCH) Delivery for 2007

Total Total Government Government Fee for Fee for SCH % funded funded Service Service (SCH) (%) (SCH) p(%) TAFEs l101,187,684 80.4o 65,733,646 78.1 35,454,038 85.1 ePrivate RTOs 14,428,124 11.5 11,252,923 13.4 3,175,201 7.6 v ACE 10,246,582 8.1 7,228,826 8.6 3,017,756 7.2 de Total VET 125,862,390 100 84,215,395 100 41,646,995 100 Of the total reported fee-for-service activity in 2007, 9.5 million student contact hours were delivered to full fee- paying overseas students living in Victoria, and another 8.2 million student contact hours were delivered in overseas locations.

In addition to VET activity, 2.1 million student contact In 2007, there were 85,208 students enrolled in higher- hours were delivered in personal enrichment programs level VET qualifi cations (Diploma and Advanced (classifi ed as non-VET activity) in 2007. This accounted DiplomaI) in Victoria. Of these enrolments, 66,193 were for 113,000 course enrolments. at the Diploma level, while Advanced Diploma In 2007, there were 201,911 government-funded enrolments amounted to 19,015. TAFE institutions mature-age enrolments (persons aged 25–64 years) in accounted for the vast majority of these enrolments, with vocational education and training in Victoria. Of those 82,546 (almost 97 per cent). ACE and private RTO mature-age students, 127,912 attended TAFE providers enrolled 3.1 per cent of students in higher-level institutions, 51,085 undertook vocational education and qualifi cations. training through ACE providers, and 22,914 attended private RTOs. Victoria’s adult participation rate in vocational education and training (as a percentage of the population) continues at a higher rate than any other State.

17 Department of Innovation, Industry and Regional Development Annual Report 07–08 The Innovation Fund enables TAFE institutions to trial Apprenticeships and traineeships new initiatives in innovation and fl exible delivery. Thirty- At 30 June 2008, the overall number of apprentices and seven initiatives, funded for a total of $4.3m, were trainees was 122,243. Of these, 98,319 held a incorporated into 2007 TAFE Performance Agreements. government-funded training place. They included projects to develop workforce training for p existing workers. A further 28 initiatives, worth a total of During 2007–08, 73,132 apprentices and trainees o $4.54m, were included in 2008 TAFE Performance commenced training (59,500 of them in government- l Agreements. funded places). There were 42,726 completions, of e which 31,493 were by government-funded apprentices In 2007–08, $2.8m of Government funding supported v and trainees. the TAFE Development Centree to provide a variety of dprofessional development programs for the staff of TAFE The Apprenticeship/Traineeship Training program institutions. provides funding for private RTOs to train apprentices and trainees. The program gives people the opportunity Programs delivered in 2007–08 by the TAFE to engage in employment while receiving formal training Development Centre include: towards a nationally recognised qualifi cation. • an industry skills scheme In 2008, 214 private RTOs were selected to commence • teaching fellowships training over 22,000 apprentices/trainees. A further • a professional learning series 1,000 places are reserved in 2008 for integrated school-based apprentices and trainees. • a teaching and learning excellence program During 2007–08, Apprenticeship Field Offi cers • a leadership scheme for all categories of staff (AFOs) and a supporting telephone advisory service • a human resource initiatives program continued to deliver high-quality services focusing on customer service and improved outcomes for • a coaching and mentoring scheme employers, apprentices and trainees. Within the • a project for engaging trade teachers in professional reporting period, all 33 AFOs completed a Certifi cate IV development in Government (Investigations). This training program • specialist scholarships for non-teaching staff enabled existing processes and procedures to be updated with revised AFO operational guidelines that • a workforce capability innovation and research came into effect in June 2008. program The Apprenticeship/Traineeship Completion Bonus • a program to build capability in the teaching Scheme provides an incentive for employers to workforce by supporting the growth of best practice. encourage apprentices and trainees to complete their In 2007–08, the Centre was also responsible for various training. In 2007–08, the employers of 16,060 one-off grants to support staff professional development. apprentices and trainees qualifi ed for Completion Bonus These included the Staff Development Grant to TAFE payments. Employers of a further 1,069 apprentices and institutions, activities to support the Skills Stores initiative trainees of not-for-profi t group training organisations and to deliver improved recognition of prior learning were eligible for the bonus under the Group Training outcomes, and training in competency-based Employment Support Scheme. assessment. In 2005–06, the Apprentice Trade Bonus program Also during the year, the Centre gained approval for a was introduced, whereby a payment of $250 is made to further $9.28m over three years to continue its activities. apprentices who reach the six-month point of their The Centre’s focus is broadening, to include providers of apprenticeship, and a further $250 is paid at the vocational education and training in the ACE sector as 12-month point. These payments are timed to reduce well as private vocational education and training the high number of apprenticeship cancellations that providers on a fee-for-service basis. occur between the end of the probationary period (three months) and the 12-month point of an apprenticeship. During 2007–08, 14,385 apprentices were eligible for bonus payments at the six-month point, and 12,214 apprentices became eligible for the 12-month payment.

18 Vocational Education and Training Hundreds of Victorian businesses have already benefi ted Skills Stores provide an access point to the vocational from Maintaining the Advantage, which has engaged education and training system. Skills Stores provide free over 1500 employees in training since it began. Industry advice to individuals about their current skills and a Skills Advisers have now been appointed in Advanced Manufacturing, Competitive Manufacturing,p Logistics personal referral to an RTO for skills recognition against a national qualifi cation. They assist employerso to develop and Supply Chain Management, Packaging l Technologies, Scientifi c and Medical Equipment their business by identifying workforce-training options, eand can also provide school careers advisers with Instrumentation, and Environmental Industries. v training information. In 2007, under the Priority Education and Training e Since mid 2007, Skills Stores have been operating in program, more than 2 million student-contact hours of d community locations across metropolitan and regional training were delivered by 98 private RTOs. Students Victoria. Seven new Stores opened six months earlier receive training that complements public provision in than planned, to bring services to rural communities industries and regions identifi ed as Government affected by drought. The 13th, and fi nal, Skills Store priorities. In 2008, the number of private RTOs opened in July 2008 in central Melbourne. contracted to participate in the program increased to 104. Maintaining the Advantage: Skilled Victorians also promotes the delivery of training, particularly higher-level Skill Up is a rapid-response program delivered by public skills, in small to medium enterprises (SMEs). It provides and private providers to train and support workers made $2m over two years for Industry Skills Advisors to redundant because of a major industry downturn or work with SMEs within priority industries for Victoria. workplace closure. In 2007–08, Skill Up assisted 2,374 They identify training needs and help stimulate demand retrenched workers of all ages throughout Victoria to for workplace training programs to address skill gaps. retrain and improve their employment prospects..

Young people Most young people complete their Year 12 qualifi cation while at school but a smaller number undertake their senior secondary qualifi cation through a TAFE or an ACE organisation. The four-year, $28.22m Youth Guarantee program began in 2007–08. It guarantees an enrolment at a public training provider for any student under 20 who is seeking to complete Year 12 or its equivalent. In 2007, there were 2,000 Youth Guarantee students aged 15–19 years undertaking the VCE and 2,937 undertaking a VCAL certifi cate. Other programs that support early school leavers to continue in education and improve their career and employment options include the Guaranteed Place in TAFE or other public providers for young people, additional funding for pre-apprenticeship places, and the establishment of Technical Education Centres. In 2007, just under 72,000 young people aged 15–19 years undertook government-funded vocational education and training with TAFE institutions, ACE and private providers.

Ballarat construction apprentice Dean Dallinger – Victoria’s 2007 Apprentice of the Year.

Gordon Institute of TAFE’s Jane Trewin – winner of the 2007 Victorian Teacher/ Trainer of the Year Award.

19 Department of Innovation, Industry and Regional Development Annual Report 07–08 Additional Vocational Education and Training Vocational Pathways within schools provision Education in Victoria is compulsory until the age of 16. Throughout 2007–08, 21 Specialist Centres were Research shows that young people who are engaged engaging industry to develop and deliver specialist with schooling until Year 12 have better long-term p training to priority industries, thereby enhancing the employment, economic and social outcomes. For this technological capabilities needed to drive effective reason, the Government has committed to a target of lo competition in the innovation economy. Centres work 90 per cent of young people completing Year 12 or its closely with individual enterprises and sectors to identify equivalent by 2010. e and deliver targeted training. v To encourage young people to stay in school and to During the year, additional efunds were provided for the enable them to complete a senior secondary certifi cate, dFurniture Industry Design and Innovation Centre post-compulsory pathways have been expanded and (formerly known as the CNC Design Centre) to enable include a strong focus on vocational curriculum options. the appointment of a ‘designer-in-residence’. The These include Vocational Education and Training (VET) in additional funds also provide for a scholarship for a Schools programs and the Victorian Certifi cate of design graduate to work at the Centre, and for the Applied Learning (VCAL) – the hands on Year 11–12 training of Centre staff and teachers from other TAFE alternative to the VCE. Institutions in the use of specialised equipment and School-based apprenticeships and traineeships 3D-modelling software. continued to expand in 2007. At the end of the 2007 New, purpose-built facilities for the Centre for calendar year, there were 6,940 senior school students Integrated Engineering are being developed at the in apprenticeships or traineeships. These were Chisholm Institute of TAFE (Dandenong Campus) undertaken as part of a program of studies combining following the awarding of $13.1m of the VCE or VCAL with a nationally accredited training Commonwealth funding. The upgraded facilities certifi cate and employment. will help integrate science and engineering studies Four Technical Education Centres (TECs), based in and enhance the delivery of manufacturing-related TAFE institutions, are being constructed at a cost of programs. $32m. The centres will help create effective pathways to employment or future training for 16 to 20-year-olds who In 2007–08, specialist provider networks were also have not completed Year 12 or equivalent. operating in a number of key VET areas including The TECs will provide access to industry standard biotechnology, competitive manufacturing, energy, facilities through simulated work environments and transport, distribution and logistics, food and meat strong links with local industry. TEC enrolments and processing, and fi bre and textiles. These networks program delivery have commenced in temporary delivered enterprise-based training to companies. facilities in Ballarat, Berwick and Wangaratta. Program delivery commences at Heidelberg in 2009.

New, purpose-built facilities at the Chisholm Institute of TAFE in Dandenong.

20 Following Council Of Australian Government reforms, Information and Communications DIIRD is working with the Commonwealth to incorporate Technology (ICT) the three non-government, school-based Australian Technical Colleges (ATCs) into Victoria’s education An innovative ICT sector delivers fi nancial benefi ts and and training system. The Department of Education and improves effi ciencies and productivityp across the Early Childhood Development is working too incorporate economy. Securing a skilled ICT workforce is a the three governmentl school-based ATCs. signifi cant challenge for industry and government. e Research confi rms that Victoria continues to lead v International students Australia in ICT skills, with the highest proportion of ICT e graduates and 34.9 per cent of all Australian ICT course Victoria is attracting record numbers of international enrolments. DIIRD continued to work with industry and d students, from more countries than ever before. In 2007, the education sector to provide ICT careers information Victoria attracted 27,000 more international student for young people and boost the ICT skills base. enrolments, a massive 25 per cent increase over the previous year. This brought the overall number of To attract young people to careers in ICT, the highly enrolments to a record 133,000, or 29 per cent of the successful ICT: Start Here. Go Anywhere campaign national total. continued in 2007–2008. Industry associations, businesses and all nine Victorian universities International education continues to be Victoria’s leading collaborated on the campaign. More than 2,000 service-export industry, contributing in excess of $3.5b secondary school students attended 13 events held in per annum to the economy and employing over Melbourne and regional Victoria. The campaign, 200,000 Victorians across all parts of our world-class targeting 14 to 19-year-olds, was complemented by education and training system. DIIRD-sponsored activities delivered by the Victorian In 2007, Victoria’s VET sector experienced the greatest Information Technology Teachers Association. These growth of international enrolments, with an increase of activities included the inaugural ICT Careers Week held 64 per cent, or an additional 15,015 enrolments. in July 2007 and the ICT Achievers Program. The state’s Higher Education sector continues to The ICT: Start Here. Go Anywhere career awareness account for the greatest number of students, with more campaign went national during the ICT Careers Week than 56,000 international student enrolments in Victorian commencing on 28 July 2008. This demonstrated universities, up 6 per cent on the previous year. Victoria’s leadership in the promotion of ICT skills and training.

Louise and Chris Fitzgibbon, co-directors of the Warrnambool-based Australian Vocational Training and Employment Services (AVTES) – 2007 Victorian Small Training Providers of the Year.

Whittlesea Secondary College won the 2007 Victorian VET in Schools Excellence Award for outstanding VET delivery to school students.

21 Department of Innovation, Industry and Regional Development Annual Report 07–08 In 2007–08, the Department continued to work with the Design tertiary education sector to implement the Government’s Design is a building block of innovation: an enabler of $2.25m ICT Skills Scholarship package. This includes competitive industries. The Department works to scholarships for undergraduate and postgraduate promote leading-edge design, which has the potential to university ICT students. It also includes initiatives to p underpin competitiveness, generate new business, facilitate industry-based learning as part of products and processes, and open up global trade and o undergraduate TAFE and university ICT study. The l investment opportunities. program increases students’ awareness of ICT careers, e promotes training in specialised skills, and develops Victoria’s designv sector is highly competitive in the job-ready graduates for thee Victorian economy. automotive, aerospace and software development industries, and also has strong capabilities in emerging Initiatives to address ICT skills supply issues included d industries such as new media and digital design. working with the Victorian ICT for Women Network to encourage more women into ICT careers. The Victoria’s 3,000 design consultancies employ around network is now in its fourth year of operation, and in 67,000 people, with a further 2,000 ﬁ rms retaining August 2007, launched a mentoring program and in-house design services. The design sector is worth piloted the Digital Divas school-based computer club for $4.8b and accounts for nearly $600m annually in girls. To date, 16 women have been mentored and 25 design-related exports. An overall 5 per cent Year 8 students have participated in Digital Divas. improvement in the value of exports where design might add a differentiating factor could be worth over $700m per year. During 2007–08, the Centre for Sustainability and Environmental Design at Swinburne University’s Wantirna campus was completed. The centre is a new $13.37m state-of-the-art facility established through the Victorian Government’s TAFE capital works projects. The centre focuses on sustainability, environmental design and land management, and improves the University’s capacity to implement Victoria’s Greenhouse Strategy while maintaining Victoria’s position at the cutting edge of environmentally sustainable technology and design.

Artists impression for the Centre for Sustainability and Environmental Design at Swinburne University’s Wantirna campus

22 The 2006–07 State Budget allocated $14.9m over four Manufacturing years for the delivery of the Design Victoria Strategy, In its sixth year of delivery, the Agenda for New which aims to increase the number of fi rms using design Manufacturing has resulted in many wins for Victoria’s to improve their innovative capacity, competitiveness manufacturing sector. and export performance. DIIRD contracted RMIT p (Design Victoria) to deliver two of the threeo components In 2007–08, the automotive sector continued to provide of the strategy, overseenl by the newly established signifi cant investment, cementing its position as a eDesign Victoria Advisory Board. cornerstone of Victorian manufacturing. v Under the Design Victoria Strategy, each fi nancial year However, the sector is entering a major transitionary e will commence with a State of Design festival, featuring period. It is moving from the production of larger cars to d the biennial Premier’s Design Awards as a major producing smaller cars, exploring alternative fuel highlight. The Premier’s Design Awards were fi rst technology and reinvigorating its export focus. awarded in 2006 to recognise excellence in design The Department has also led the whole-of-government practice through the Premier’s Design Mark. At the facilitation and investment activities for the retail and inaugural July 2008 festival, another key event was fashion sectors, while taking an active role in securing launched – a new trade fair for young and promising opportunities for Victorian Defence manufacturers. The production-ready designers. Department, in collaboration with the Federal DIIRD achieved all of its Design Victoria 2007–08 targets Government, secured the Defence Materiel Technology – the principal target of 1,000 people participating in Centre for Victoria. design lectures, seminars and workshops was The major development in the retail sector is the exceeded by 30 per cent. announcement that Costco will open its fi rst Australian store at Waterfront City, Docklands. This will provide $60m in capital investment and 250 new jobs. In addition, Myer began its $100m redevelopment of the Bourke Street store and David Jones announced an $80m redevelopment of its Melbourne city store. After the second year of implementation, the Melbourne Retail Strategy enjoyed signifi cant progress in the development of the retail sector, including the Docklands Retail Statement.

Design Award winners can brand their designs with the Premier’s Design mark.

23 Department of Innovation, Industry and Regional Development Annual Report 07–08 p Defence Apparel elo Innovative Victorian company Australian Defence ‘We punched vway above our weight to win this and it Apparel (ADA) has won a elucrative $80m contract to puts us on the global stage. It proves that Australian dsupply the Australian Defence Force with new- industry as a whole can be a world leader in front line generation modular body armour. technology creation and manufacture.’ The company beat a strong line-up of 16 international In 2002 ADA received a grant of $120,000 from DIIRD’s competitors from the US, Europe, Canada and Israel for Business Assistance program for the expansion of its the fi ve-year deal. The contract will allow ADA to Bendigo plant. ADA also received Victorian Government employ a further 80 staff at its Bendigo manufacturing export assistance in 2005 and 2006 under the Opening facility. Doors to Export: Trade Fairs and Missions program, and the Department provided crucial advocacy support ADA Managing Director Mr Brian Rush said the deal to ADA for the body-armour sale to the Defence also included a support contract to maintain and Materiel Organisation. recertify the armour over a fi ve-year period, believed to be an international fi rst. Bendigo manufacturer Australian Defence Apparel are supplying Australia’s defence forces with new-generation, casesmodulart body armour.udy

24 Innovation • in 2006–2007, Victorian fi rms raised $387m in capital, or 43 per cent of the total $902m raised by In early 2007, the Department developed the Victorian Australian life-science fi rms, exceeding the target of Government’s National Innovation Agenda [NIA] 40 per cent. Proposal – Driving a Stronger Future for Australia through a New National Approach to Innovation. The The 2007 Victorian Biotechnology Strategic NIA called for the active involvement of all Australian Development Plan was launched in October 2007, to governments in the development of a new national build upon Victoria’s leadership in healthp and agricultural approach to innovation. obiotechnology, while exploring opportunities in emerging l areas of the bioeconomy. The Commonwealth Government has since ecommenced the Commonwealth Review of the National The Victorian Government is providing $3m towards the v Innovation System (NIS), and Victoria’s NIA proposal is Victorian Neurotrauma Initiative (VNI) in partnership with e now helping to inform this review. the Transport Accident Commission, which is contributing $60m over 5 years. Twelve new VNI d Throughout 2007–08, the Department worked on the projects have been announced, bringing the total development of the Victorian Innovation Statement number of projects funded to 37, with a value of released in August 2008. The Statement provides a over $20m. vision of Victoria’s future in 2020, together with the strategic direction and investment needed to put Following an announcement by the Premier of $4.25m to Victoria’s science, technology and innovative capabilities build Victoria’s skills in brain and spinal injury research, the to work to secure our long-term future. fi rst eight VNI Fellowships were awarded in May 2008. The Victorian Innovation Statement will provide initiatives In February 2008, VNI initiated multi-disciplinary grants to advance Victoria’s healthcare, education, to build capability and capacity in brain and spinal injury communications, energy, environmental and advanced research, with funding of up to $5m per year for 5 years. manufacturing sectors. The Victorian Centre for Functional Genomics The Victorian Government aims to make this State a (VCFG) at the Peter MacCallum Cancer Centre was world-top-5 location for biotechnology. A progress offi cially opened in May 2008. Supported by a Victorian report detailing achievements arising from the 2004 Government grant of nearly $500,000, the VCFG will Victorian Biotechnology Strategic Development Plan accelerate new discoveries to fi ght cancer, showed that the Victorian Government’s leadership is cardiovascular disease, epilepsy, arthritis, asthma, working and that Victoria’s biotechnology industry is reproductive and endocrine disorders and many other building capacity, strength and critical mass. diseases, and aid the development of new diagnostics, treatments and prevention strategies. Achievements against the targets established in dy 2004 include: The successful Victoria Prize and Fellowships tu program continued, rewarding and encouraging science s • the value of biotechnology deals signed in Victoria e excellence and creating opportunities to fast-track as from 2004 to 2007 exceeded the target of $1b by at c development of early-career scientists and engineers least $3b and build international linkages. • annual corporate research and development The Victorian Endowment for Science, Knowledge expenditure reached $528m, exceeding the target of and Innovation (VESKI) works to enhance Victoria’s $500m per annum by 2007 and representing a intellectual capital through a dynamic program of 66 per cent increase over the previous three years fellowships, awards, and international networks.

BioSkills – a new specialist biotechnology training centre at Box Hill Institute of TAFE – will develop technical and operational skills for the biotechnology sector.

The Bio21 Institute is a major centre for biotechnology research and development

25 Department of Innovation, Industry and Regional Development Annual Report 07–08 VESKI’s Innovation Fellowships facilitate the return to digital media. This covers production, broadcasting, Victoria of successful Australian expatriates with digital animation, electronic games, and services such outstanding skills in scientifi c research. The 2008 VESKI as casting, fi lm editing and titling. Fellow, diabetes researcher Professor Michael Cowley, This year’s dramatic increase in production expenditure returned from Oregon Health and Science University to p is because of a wealth of home-grown and international join Monash University’s Obesity Initiative. documentaries, feature fi lms, television drama, short lo In August 2007, Victorian researchers received six of the fi lms and digital media projects. Production investment nine new Australia Fellowships established by the commitments in 2007–08 also totalled $5.8m – a 45 per e Commonwealth Government and awarded by the cent increase onv the previous year’s funding. National Health and Medicale Research Council. The At least 57 fi lm, television and digital media productions dAustralia Fellowship is for outstanding health and were created in Victoria in 2007–08 capitalising on the medical researchers across all disciplines, with state’s world-class facilities, expertise and locations. applications accepted from leading researchers both in Among these projects was signifi cant production Australia and around the world. expenditure in television. Innovation @ 257, at 257 Collins Street, Melbourne, Film Victoria funding programs leveraged $205m of the continued to assist Victorian entrepreneurs and total production expenditure in 2007–08 (compared with innovators with advice, mentoring and networking $94m the previous year) and 78 per cent of the total job opportunities. During 2007–08, 12,570 people attended opportunities created through production activity. 422 seminars and workshops hosted by Innovation @ 257 to increase skills and knowledge in the Adding to the success of local projects, Victorians also commercialisation of ideas or products. played host to two major international productions: Steven Spielberg’s mini-series The Pacifi c and feature The centre continued to host and support fi lm Knowing, starring Nicholas Cage. Both productions entrepreneurial networks to encourage technology provided local practitioners with valuable employment transfer and the sharing of ideas and experiences. opportunities and hands-on industry experience. Combined, Knowing and The Pacifi c created over 3,000 Screen industries jobs and brought $125m to the State’s economy. The Victorian screen industry has had a record year in Film Victoria’s Regional Location Assistance Fund (RLAF) 2007–08, recording its largest production expenditure of is an additional incentive aimed at encouraging $262m – an 80 per cent increase in the last 12 months. productions to utilise the beauty and fl exibility of The year’s jump in activity meant the creation of 7,862 provincial Victoria as a fi lming destination. full-time employment opportunities. In 2007–08 RLAF drove more than $3.9m in production Through Film Victoria and Multimedia Victoria, the expenditure to provincial communities throughout Department supports the development and growth of a Victoria. Local productions such as Bed of Roses, strong Victorian screen industry and promotes Victoria starring Kerry Armstrong, contributed enormously to the as a preferred location for screen industry investment 240 per cent increase in regional production activity and production. since 2006–07. Screen industry production is estimated at $500m per year in Victoria, and incorporates fi lm, television and the

Hugo Weaving (L) and Pia Miranda and Rose Byrne (R) in The Tender Hook, Mandala Films Pty Ltd, ﬁ lmed in Victoria with support from the Regional Victoria Location Assistance Fund.

26 Tourism programs which will further the tourism industry’s online skills and usage, in particular to accelerate and expand Attracting and retaining a skilled workforce is critical to the uptake of online booking and e-marketing activities. achieving a sustainable and successful tourism industry. Creating an $18b tourism and event industry by 2016 Education materials will be delivered pthrough public will require the creation and fi lling of 66,000 new jobs. presentations, newsletters, fact sheets, workshops, otraining videos and online, and will be integrated with the Victoria’s Tourisml Excellence Program is a new Tourism Excellence program. eweb-based development tool designed to assist tourism v businesses by focusing on case studies of particularly DIIRD provides support for the continuance of tourism successful small tourism businesses. The program aims industry awards as they help provide an industry e framework for peer recognition, in turn fostering an to take Victoria’s tourism operators to a level of d excellence in delivering outstanding visitor experiences. industry culture of business development, excellence By meeting or exceeding our visitors’ expectations, we and innovation. can have greater repeat visitation and positive word-of- In 2007–08, Victorian tourism operators confi rmed their mouth referrals from satisfi ed visitors, which will help us reputation as among the nation’s best, winning six build and sustain our competitive advantage. Qantas Australian Tourism Awards – fi ve outright wins The overall aim of our Tourism Excellence strategy is to and a high commendation. raise the skill levels and standards of those at the There were also more than 130 entrants in the industry’s front line. More than 50 case studies are Melbourne Airport 2007 Victorian Tourism Awards, with featured, ranging from establishing and managing winners gaining entry to the national 2007 Australian boutique accommodation, to innovative practices by Tourism Awards. Victorian businesses won in the tour operators. following national categories: The program’s website received more than 5,000 • Festivals & Events – Fun4Kids Festival industry visits over the past year, with further industry (in Warrnambool) workshops and seminars being offered in 2008–09. • Meetings & Business Tourism – Geelong Otway Tourism Accreditation Support is a business Tourism compliance program that’s also contributing to the raising of industry standards and helping the local • Tour & Transport Operators – Go West Tours industry to compete more effectively in the global • Hosted Accommodation – Monreale Estate tourism market. • Deluxe Accommodation – Crown Promenade Hotel. Through both the Tourism Excellence and the The Koorie Heritage Trust was awarded a high Accreditation programs, 34 workshops engaged 500 commendation in the Indigenous Tourism category. people. Over the past 12 months, the number of ‘Highly commended’ businesses are those that have businesses gaining accreditation grew by 10 per cent. scored within one point of the winner. Tourism Victoria uses online communication and technology to market Victoria as a premium tourist destination to Australian and international travellers. In June 2008, preliminary work commenced on a project to develop and implement training and education

The Twelve Apostles

Yarra Valley

27 Department of Innovation, Industry and Regional Development Annual Report 07–08 Regional Development Small business Through Regional Development Victoria, the Department The Department is implementing Victoria’s small business continues to deliver programs and services to strengthen statement, Time to Thrive: supporting the changing face regional economies and to enhance the viability and of Victorian small businesses. sustainability of regional communities. Through Small Business Victoria, DIIRD delivers programs Facilitation and program delivery fosters economic and designed to skill small business operators, generate jobs, p industry growth and investment attraction in regional exports and investment, and provide support for Victoria. During 2007–08, this has led to: innovative businesses. lo • $1.2b in regional investments More than 7,000 small businesses participated in one or e • 2,766 new jobs more programs,v including Grow Your Business, the Small Business Mentoring Program, and Under New • $669m in exports. eManagement workshops. More than 300 small dThe Food Industry for a Regionally Sustainable Tomorrow businesses have been assisted with workforce planning (FIRST) program has been developed under the Provincial assessments and action plans through the My Business Victoria Growth Fund to help regional Victoria’s food My People program. industry respond to environmental and economic factors The Department also provides coordinated and that will affect future competitiveness and sustainability. accessible information through the service delivery Funding of $3m over three years has been approved to network of the Business Victoria website, the Victorian develop initiatives around fi ve key action areas: innovation, Business Line, and the World Class Service initiative. industry capability, supply chain development, international growth and Food for Life. Business Victoria users have grown by over 15 per cent since 2006–07. 968,311 new users registered in the During the year, 18 leadership projects were approved eleven months between 1 July 2007 and 31 May 2008, under the Provincial Leaders Development Program, with compared with 836,350 for the whole of the previous grants totalling $393,000. One of these projects is a joint fi nancial year. venture between Shepparton and Campaspe Shire Councils, whereby the Building Leadership in the The World Class Service initiative has connected 113 Goulburn Murray Region initiative is engaging state and federal agencies and all local governments representatives of the region’s various disadvantaged and through the Business Victoria website, enabling small ethnic communities to develop their potential as leaders in businesses to deal more productively with Government. the Goulburn Murray community. This year, Business Victoria introduced new services Funding of $900,000 was also approved in 2007–08 to including Find an Adviser, business tools and templates, establish a Targeted Trade and Investment Missions franchising information, vodcasts, dispute resolution Program for regional Victoria. The program encourages information, Calendar of Events, and new FAQs. export and investment opportunities, including the Of the more than 26,000 businesses registered for events exploration of new markets and the strengthening of at the August 2007 Energise Enterprise small business activity within existing markets. festival, 92 per cent of survey respondents said the event Regional Victoria’s employment grew by 5,548 people in they attended had been relevant to their needs. the June 2008 quarter, the second-highest in Australia DIIRD is the fi rst Victorian Government department to behind the resource-rich state of Queensland – evidence adopt a Small Business Service Charter. The that Victoria’s regional economy is continuing to grow Government’s Fair Payments policy applies to all Victorian despite challenges such as the high Australian dollar and Government departments. Since September 2007, it has the continued impact of the drought. also applied to 107 government agencies. It requires all Victorian Government departments and agencies to pay Drought small business suppliers within 30 days or be liable for penalty interest. Continuing drought is constraining businesses that support, and are dependent upon, farming communities Since the introduction of the Fair Payments policy, across provincial Victoria. departmental payment performance has improved. Across departments there was an average of 16.85 per The Business Transitioning program was developed in cent late payments, compared to the Auditor-General’s response to the drought, and is being delivered by the forecast of 23 per cent. Victorian Employers Chamber of Commerce and Industry (VECCI). Businesses are given the opportunity to attend The Victorian Small Business Commissioner is information seminars, to receive an individual review of further helping to create a competitive and fair operating their business, and to obtain advice regarding the future of environment for small business in Victoria. Since its their business from specially selected business advisors. inception in 2003, the Offi ce of the Commissioner has dealt with more than 4,230 disputes involving over The program has almost 300 businesses registered – $200m, and receives increasing numbers of dispute many having already completed business viability reviews referrals each year. and follow-up individual planning sessions.

28 elop ev Mercato serving up staff d For many years, Richard Mee, owner and chef of Italian planning requirements, skills shortages and training restaurant Mercato @ Daylesford, was running around needs, resulted in a tailored action plan. As a result, doing everything in his business – except getting business is up nearly 20 per cent on the same time ahead. last year, and Richard is amazed at the difference the My Business My People program has made to his Richard enrolled in the Victorian Government’s free business. workforce planning program, My Business My People and had a conversation that transformed the way he ‘I am so impressed with the program. I now have staff works into ‘smarter not harder’. calling me on their days off because they have new ideas for the business. It just goes to show that if you A four-hour consultation with a specialist who invest time and energy in your staff it pays back ﬁ ve or undertook an assessment of Mercato’s workforce six-fold,’ he said. Richard Mee, owner and chef of Mercato@Daylesford casestudy

29 Department of Innovation, Industry and Regional Development Annual Report 07–08 Growth and development in Victoria’s Indigenous In 2008, a second edition of the inaugural 2007 Victorian business sector is supported by the Koori Business Indigenous Business Directory was launched, featuring a Network (KBN), which promotes Indigenous business 50 per cent increase in the number of businesses products and services, develops new businesses and showcased. creates employment pathways. The KBN successfully p The KBN, in partnership with RMIT and Swinburne delivered its suite of culturally appropriate business University, received an Australian Research Council grant o support programs, providing assistance to Indigenous l to conduct Victorian-based research of international businesses from inception through to advanced stages signiﬁ cance into Indigenous entrepreneurship. e dof development. ev Native Oz Cuisine y Native Oz Cuisine produces and markets a range of superior qualityt pastau sauces infused withd Indigenous Australian herbs and spices.s Native Oz Cuisinee regularly accessess KBN business support programs and promotional caopportunities. These include assistance in marketing and business planning, reaching target markets and showcasing their product to local and interstate audiences. Earlier this year, Native Oz Cuisine secured a lucrative national contract to sell its products through Woolworths/ Safeway stores. Native Oz Cuisine part-owner Malan Dimopolous also participates as an Indigenous business champion, regularly speaking at KBN events to raise the proﬁ le of business ownership among Indigenous Victorians. Native Oz Cuisine now has its eyes set on increasing its number of Indigenous employees and promoting its products to international markets.

Koori Business Network’s Peter Dearsley with Malan and Greg Dimopoulos of Native Oz Cuisine

30 Workforce participation Under the program, grants of up to $1,000 will pay for training-related expenses such as course fees, course DIIRD promotes a positive working culture across materials and childcare. A total of 12,000 grants are industry through training, skills development and the being made available through two streams: Universal provision of fair terms and conditions for all Victorian Access grants, open to all parents whop meet the criteria, workers. oand Community Access, for organisations to apply on Workforce Participationl delivers sustainable employment behalf of parents who face signiﬁ cant barriers to eoutcomes to help disadvantaged jobseekers, while also employment or who live in drought-affected areas. In v helping Victorian employers effectively meet their skills 2007–08, 1,680 Universal Access grants and 1,270 e and labour needs. More than 1,500 Victorian businesses Community Access grants were allocated. have already beneﬁ ted from the program. d The Working Families Council’s submission to the April Since 2005, the Workforce Participation Partnerships 2008 Federal Government’s Australia 2020 Forum program has assisted over 3,000 disadvantaged comprised an action plan of priorities to champion and jobseekers to gain sustainable employment in areas of promote activities associated with better work and family y skills and labour needs. balance. ud The four-year Experience Counts initiative launched in In December 2007, a new Career Start program was t March 2008 is supporting 700 mature-aged retired es launched to support recent graduates with a disability to as Victorians to re-engage with the workforce, and enter professional and semi-professional positions in the c contribute their skills and experience in areas of need. public and community sector. The program will assist The program is being implemented in partnership with 200 graduates over four years. industry bodies and unions. The $13.2m four-year Returning to Earning program is also helping to address the skills and labour needs of Victorian employers. The program provides critical support to parents who have been at home for two years or more, assisting them to upgrade their skills for a return to work.

The Returning To Earning program assists people to upgrade their skills for a return to work.

31 Department of Innovation, Industry and Regional Development Annual Report 07–08 connect

32 Victorians and Victorian businesses to local, national and international businesses, markets and governments

DIIRD supports Victorian business and industry Signifi cant global business has been generated from by building relationships with and between attending overseas trade shows and Victorian business, linking business with opportunities Government-sponsored trade missions. including new markets and new exports, and Melbourne company, Exinda Networks has opened a assisting with the commercialisation of new global research and development centre to meet innovations. the needs of its domestic and global expansion. The Department works to address infrastructure Victorian software developer, Space-Time Research is providing business intelligence software to international gaps throughout the State, and to continually organisations such as Italy’s Venice Port Authority, the improve and simplify the connections between Cambodian National Institute of Statistics and New business, citizens and Government. Zealand’s Ministry of Education, and has grown its business to 70 employees. International Victorian mobile technology company, Yoober signed an International collaboration is increasingly a major investment and a distribution deal with Hong Kong component of global competitiveness. With the company, Digital Dimension, towards the company’s Department’s assistance, Victoria is building strong links international expansion. with overseas research and business partners. DIIRD’s twice-yearly industry surveys inform policy and During 2007–08, the Department continued to promote program development, and research into emerging ICT ICT strengths to key international markets, and markets. The fi ndings have helped guide the encouraged local companies to be more innovative and Department’s successful efforts to facilitate the national globally focused. and international expansion of Victoria’s ICT industry. Through the ICT Trade Events and Export Assistance The Government has assisted Victorian ICT companies Program, DIIRD led seven ICT trade missions, enabling to identify opportunities in new international markets Victorian ICT companies to assess and build a presence through a series of emerging market strategies, including in key international markets. launching the Emerging ICT Market Strategy for South Africa in December 2007. Event Location Number of The Department also assisted local companies to attend companies the March 2008 Game Developers Conference (GDC), Gitex Dubai, UAE 17 considered to be the major US event for games companies to explore creative ideas and meet CeBIT Asia Shanghai, China 25 international publishers and distributors. InfoCom and ITS India Hyderabad & New Delhi, Victorian companies attending GDC included Acheron India 4 Design, Act3Animation, Big Ant Studios, Big Pipe OFC/NFOEC San Diego, USA 30 Media, Brag Rat Entertainment, Endgame Studios, representatives Everyday Interactive Networks, Firemint, Fmod, Infi nite Game Developers Interactive, IronMonkey Studios, Mini Studios, Studio Conference San Francisco, USA 16 Moshi, Torus, Tantalus, Transmission Games and VastPark. These companies received a signifi cant Hong Kong ICT Expo Hong Kong, China 7 discount for the conference business-matching service, Communicasia Singapore 21 which is crucial for games companies wishing to strike deals with publishers. More than 250 grants enabled Victorian ICT companies to promote their capabilities in over 25 countries, generating projected exports of more than $220m. Forty-eight Victorian ICT companies accessed the ICT Trade Events and Export Assistance Program for the fi rst time, more than doubling the target of 20.

33 Department of Innovation, Industry and Regional Development Annual Report 07–08 Victorian games companies generated $22m in exports appointed to facilitate broadband projects in regional from this conference, with predicted exports of $30.5m Victoria. Complementing this work, the Victorian over the next 12 months and $88.6m over the next 24 Government has also provided the Municipal months. Association of Victoria with a $2m grant to support local t The Victorian Government’s ICT Industry Plan 2005– government broadband projects. c 2010 assisted in achieving strong industry growth in Under the ICT Industry Plan 2005–2010, the e 2007–08. Department has established thirteen ICT clusters, n At October 2007, Victoria’s ICT sector employed 84,600 fundedn to encourage strategic collaborations. people, growing 11.7 per cent between June 2004 and In 2007–08, the following new clusters were cDecembero 2007. supported: • Victorian ICT for Women Victoria’s ICT revenue grew by 21 per cent between June 2004 and December 2007 to • Enterprise Java Victoria $24.4b. Annual revenues from international • Mobility Mesh operations of Victorian ICT businesses and exports • Spatial Victoria of ICT equipment and services now total approximately $1.8b. • Radio Frequency Identifi cation Network. Skilled Migration Broadband Innovation Fund The $15m (BIF) Through the new Global Skills for Victoria: Skilled continued to accelerate adoption of broadband in Migration Strategy, the Department is helping position delivery of government services, focusing on health, Victoria as the destination of choice for skilled and education, environment and primary industries over business migration. three years, funding eight projects. Under the program, two four-year postings were created Victorian eResearch Strategic Initiative The (VeRSI) to provide local assistance in two of Victoria’s largest provides $10m over fi ve years to develop grid source countries for skilled migrants: the United infrastructures, services and applications. This year Kingdom and India. Both posts have undertaken VeRSI Phase II supported eResearch projects delivering marketing to potential migrants, including attending eResearch skills, infrastructure and applications to employment and industry expos. Latrobe University and the Department of Primary Industries. The LiveInVictoria website averages 65,000 visits per month, also helping attract skilled and business migrants VicStart, the Victorian Government’s technology to Victoria. commercialisation program, supported 13 VicStart partners, mentoring over 460 businesses and facilitating Victoria’s share of Australia’s skilled and business access to over $105m of new investment in technology migrant intake has risen from below 20 per cent in businesses to December 2007. 1999–2000 to 27 per cent in 2006–07. As part of Victoria’s participation in the Commonwealth’s To promote the regions outside Melbourne, the Global Clever Networks Broadband Development Element Skills for Provincial Victoria program was established in program, two Broadband Project Offi cers have been 2007. With State Government funding, local government

Victorian company Fmod on display at GDC

34 authorities and development agencies in ten key regions And in 2007–08, major new biotechnology have banded together to promote their skill needs partnerships were forged, including: through the program, as well as their own initiatives. • Victorian Neurotrauma Initiative/Ontario Neurotrauma Foundation t Victoria’s International Network c Victoria has an extensive international network of • CRC for Advanced Composite Structures/Manitoba eComposites Innovation Centre Victorian Government Business Offi ces (VGBOs) and nTourism Victoria Offi ces (TVOs) located in 11 countries. • Monash Institute of Medical Research/Manitoba n Since 2000, these overseas offi ces have played an Institute of Cell Biology o integral part in attracting more than $8.7b worth of • State of Victoria/California Institute of Regenerative c foreign direct investment, and thousands of jobs and Medicine. visitors to Victoria. Exports In October 2007, following a review by the Agent General in London, the Premier released a new strategy, Throughout 2007–08, the Department worked with Seizing Global Opportunities. Central to the strategy is industry to increase awareness of the benefi ts of the establishment of a new International Coordination exporting and to provide programs and services that Offi ce in DIIRD to manage the international network and help access opportunities in off-shore markets. deliver the historic reforms now underway. This will The Opening Doors to Export Program provided 3,481 ensure that Victoria offers a seamless, integrated and companies with export assistance, with 1,167 rewarding experience to those seeking to invest in, trade companies participating in export programs. with, migrate to or collaborate with Victoria from abroad. Signifi cant progress in the development of Export Reforms will improve the network’s contribution to the Connections (formerly the Victorian Export Network) State’s export target of more than $35b by 2015. moved the project closer to an early 2008–09 launch. Specifi cally, the network’s activities are being more tightly Three hundred and seventy-six companies participated linked – across industry, education, tourism, primary in 38 DIIRD-supported overseas Trade Fairs and industries, migration and other key growth areas – to Missions during 2007–08, facilitating an expected make them more targeted, visible and effective in a increase in mature annual exports of $431.3m. global marketplace that is more competitive than ever before. The Governor of Victoria Export Awards Science and technology At the 2007 Governor of Victoria Export Awards, Victoria’s Securency International, the recognised world International collaborations are critical to furthering global leader in application of the technologies used in polymer research and development, particularly in science, bank notes, was named Victorian Exporter of the Year, medicine and biotechnology. and 20 other Victorian exporters were awarded or In 2007, Victoria hosted the International Brain Research commended. Organisation World Congress for the fi rst time, attracting more than 2,000 of the world’s leading neuroscientists to Melbourne. The following projects were funded under Round Four of the Victoria-Israel Science and Technology R&D Fund (VISTECH): • Sustainability Ventures in Victoria and Aqwise in Israel – to develop a new sustainable water re-use system for dairy farms, combining water savings and aquaculture • Floorbotics in Melbourne and Kanitti Engineering in Israel – working on an industrial fl oor-cleaning robot • Anadis in Victoria and Maya-Biotech in Israel – to collaborate on a new mucositis treatment to help patients with the side-effects of radiation therapy.

35 Department of Innovation, Industry and Regional Development Annual Report 07–08 Olive Group’s Export Success t Each year, DIIRD delivers the Governor of Victoria Exporter, Access China and the Trade Fairs and c Export Awards to acknowledge the continuing export Missions program, have helped Boundary Bend e success of Victorian industry, including agricultural Limited export its products to Asia and North America. n value-added businesses. Boundary Bend nis now Australia’s largest manager of In 2007, olive oil producero and grove manager olive groves, the largest supplier of extra virgin olive oil cBoundary Bend Limited won the annual Victorian to the Australian domestic market, and Australia’s Agribusiness Export Award, and then went on to claim largest olive oil exporter with sales in more than 15 success in the Australian Export Awards as Australia’s countries, including Italy. top exporter of Agribusiness products. The company also manufactures ‘The Colossus’, a The company, whose headquarters are at Lara with unique olive-harvesting machine currently operating in most of its groves along the Murray Valley, expects the groves on three continents, and is the largest supplier 2008 harvest to deliver over 30,000 tonnes of olives of olive trees to nurseries and the largest manager of and produce about 5.5 million litres of oil. processing plants. Assistance from the Department’s Opening Doors to Export programs and services,e including the Firsts Step tudy as Mechanical harvesting under way at c Boundary Bend – Victorian olive oil producer and Australian Export Award winner.

36 Infrastructure • Mouse Phenotyping – at Monash University Science and Technology • Nanofabrication Facility – at Monash University In 2007–08, more than 400 businesses and researchers • Bioprocessing – at Monash University/CSIRO. t accessed infrastructure funding through the Science, The Victorian Cancer Biobankc was established with a Technology and Innovation (STI) eInitiative. $7m STI Initiative infrastructure grant. The Biobank holds Independent analysis of STI Initiative projects delivered a growing collection of blood and tissue samples taken n from patients with cancer and healthy individuals. These since 1999 showed that more than 370 patents have n been fi led as a result of STI Initiative projects, and STI samples are available to cancer researchers within o Initiative competitive infrastructure grants have attracted Australia and internationally, for use under ethical c more than $770m in co-investment. In addition, 326 guidelines, to enable the pioneering of new therapies. PhDs were commenced in projects funded under the The Biobank was offi cially launched by the Minister for STI Initiative and 36 STI Initiative infrastructure projects Innovation in September 2007. are currently under management. Australian Synchrotron – Shining a Light on Innovation The new CSL Biopharmaceutical Formulation Centre, part-funded by a $2.7m STI Initiative grant, The Australian Synchrotron opened in July 2007, having was launched in October 2007. CSL has provided attracted more support across the whole spectrum of a further $5.3m as well as additional R&D the research community than any other major scientifi c infrastructure and expertise. project in Australia’s history. The Australian Synchrotron has forged a new collaborative model for provision of The Centre formulates experimental medicines for crucial national facilities. This world-class platform for clinical trials. The facilities are used by CSL for its groundbreaking research is Australia’s most signifi cant own development projects and by partner investment in science infrastructure for three decades. Swinburne University to train students in Good Manufacturing Practice procedures. The facility The Victorian Government handed control to the also provides a service to small biotechnology independent Australian Synchrotron Company on companies needing assistance in formulating their 1 November 2007. Leading scientists around Australia own products for testing. and from New Zealand are eagerly taking up opportunities to advance their work using the Australian Synchrotron’s powerful beamlines, with demand for Five research infrastructure nodes, supporting beamtime exceeding initial estimates. nanotechnology and biotechnology research and development, jointly funded by the Commonwealth Research breakthroughs are already starting to fl ow. Government, STI Initiative and host institutions, are now Scientists from the Walter and Eliza Hall Institute of up and running: Medical Research recently observed for the fi rst time how the molecular ‘switch’ that regulates the life span of • Metabolomics Australia – at the University of normal cells is tripped – a discovery with the potential to Melbourne lead to the development of new cancer treatments. • Genomics Australia – at Australian Genome Research Facility

The new Biopharmarceutical Formulation Centre will speed development of new therapies and boost critical skills for the biotechnology sector.

37 Department of Innovation, Industry and Regional Development Annual Report 07–08 World’s Largest Life Sciences t Supercomputer ec The Victorian Government has provided $50m towards excellence in life sciences research, and will n the $100m Victorian Life Sciences Computation accelerate majorn medical breakthroughs. VLSCI will Initiative (VLSCI), a jointo project with the University of take the ﬁ ght to some of our biggest health challenges, cMelbourne. VLSCI will deliver the world’s largest and such as cancer, cardiovascular and neurological most powerful life sciences supercomputer and a disease, and diabetes. world-leading computational biology facility. This new facility will help Victoria attract the world’s Life sciences researchers are increasingly reliant on best researchers and students, and train the next supercomputers as they work with large databases of generation of bio-science researchers. genetic information and employ complex analytical models. Premier John Brumby announces the Victorian Life Sciences Computation Initiative while visiting the University of This major investment in life sciences capacity will California San Diego’s Supercomputer Center. further boost Victoria’s reputation as a global centre of casestudy

38 Major Projects plenary hall, a fi ve-star Hilton hotel, an offi ce tower, and Through Major Projects Victoria, the Department delivers a riverfront promenade of shops, cafes and bookstores. one-off major projects across a broad range of sectors, The plenary hall boasts a further innovation – being able including arts and culture; business, industry and to be divided into three self-contained halls, while t innovation; history and heritage; hospital and health ensuring all audience membersc have a clear view to the services; new homes and communities;e public spaces stage. nand venues; and sports and recreation. The design and construction of the Parkville Gardens n In January 2008, the Melbourne Convention Centre demonstrates a new benchmark for sustainable development, currently under construction at South residential development with a six-star energy rating for o Wharf, became the fi rst building of its kind in Australia to all homes, rainwater collection and recycling systems, c be awarded a six-star Green Star rating for and solar hot water. environmentally sustainable design by the Australian Stage 1 of the Kew Residential Services onsite Green Building Council. redevelopment, completed in April 2008, has delivered The Centre’s imaginative environmental design uses 20 community houses for 100 people with intellectual natural light, fresh air, chilled fl oor slabs and disabilities on the former Kew Cottages site. This work displacement ventilation. Other environmentally by Major Projects Victoria completes the relocation of all sustainable design features include the installation of a former Kew Cottages residents, which includes the off blackwater treatment plant and the use of sustainably- site relocation of 380 former Kew Cottages residents in harvested timber-veneered board. 73 community houses across the State in June 2006. The development, currently on time and on budget, will The $128m Melbourne Recital Centre and be fully integrated with the Melbourne Exhibition Centre Melbourne Theatre Company theatre project ends a at Southbank, creating a lively precinct along the Yarra 20-year search for a permanent home for the MTC and River, linking South Wharf by footbridge to Docklands. provides a purpose built, high quality recital hall for The centre and its adjacent commercial development Melbourne. tudy will open for business in 2009. It will feature a 5,000-seat ses New homes for 100 intellectually disabled ca people were delivered by the Kew Residential Services redevelopment.

The new Melbourne Recital Centre will double as the new home for the Melbourne Theatre Company.

The innovative Melbourne Convention Centre development at South Wharf opens for business in 2009.

39 Department of Innovation, Industry and Regional Development Annual Report 07–08 Construction of the $267.5m Melbourne Healthy Futures Rectangular Stadium began in November 2007. In 2007–08, DIIRD continued to lead delivery of the It will ﬁ ll the gap in Melbourne’s sporting Victorian Government’s $230m Healthy Futures initiative, infrastructure for a purpose-built, mid-size venue which is providing major new infrastructure and support t for soccer and rugby, acknowledging their strong to improve health outcomes for Victorians. c growth in popularity. Healthy Futures is delivering projects worth over e For many years, elite soccer, rugby union and $713m, including: n rugby league in Victoria have managed with inadequate grounds – either designed for other • the new Australiann Regenerative Medicine Institute at sports, or incapableo of accommodating Monash University cincreasingly large crowds in comfort. • new facilities for neuroscience researchers coming The Melbourne Rectangular Stadium will provide together to create the Australian Centre for players with a world-class soccer and rugby pitch Neuroscience and Mental Health Research and offer spectators a second-to-none viewing • the merger of the Austin and Burnet Institutes to experience, driving new opportunities for the create an infectious diseases super-institute State’s sporting events strategy. • the expansion of the Walter and Eliza Hall Institute The $267.5m stadium will have capacity for • data linkages and infrastructure to support medical 31,000 spectators and feature a cutting edge research. ‘bio-frame’ roof design, providing extensive seat coverage and excellent spectator sight lines. When complete, the stadium will be the new home of the elite Melbourne Victory soccer and Storm rugby league teams, providing a world-class training, sports medicine and administration complex. The stadium is expected to be completed by the end of 2009. During construction, more than 1,200 workers are expected to be employed both on and off the site.

Artsit’s impression: Melbourne Rectangular Stadium

40 Regional Victoria In 2007–08, $8.6m was provided from the Small Towns Local access to Government services and information is Development Fund for 73 projects. The fund supported imperative to the continued development and projects of various types, including tourism, water saving sustainability of enterprises and community and reuse, industrial estates, halls, community centres, t organisations. parklands and rail-trails.c To ensure they have a fi rst pointe of contact to Examples of RIDF 2007–08 projects that will naccess Government services, the Department has: deliver signifi cant economic benefi ts include: n • Regional Offi ces (Victorian Business Centres) located • Expansion of a statewide network of GPS fi xed-base in eight provincial locations stations under Positioning Regional Victoria’s o Future Prosperity. This project will benefi t regional c • Three Victorian Business Centres based in key Victoria by driving productivity, and enabling improved metropolitan locations environmental outcomes through access to highly • Eight Rural Development Offi cers outposted among accurate satellite-based positioning and navigation. smaller communities. • Redevelopment of the Wonthaggi State Coal These resources are placed to deliver regional Mine, the only heritage black coal mine experience development programs, services and initiatives at the open to tourists in the Southern Hemisphere, will local level. allow this landmark Victorian attraction to re-launch itself and attract an estimated 20,000-plus visitors a The Department continues to support infrastructure year, providing a signifi cant boost to the local development that contributes to the economic growth economy. and liveability of regional Victoria. • A new non-potable water supply has been created The $10.6m Hepburn Springs Bathhouse for Lara-based Boomaroo Nurseries, a major redevelopment funded under the Regional Infrastructure vegetable seedling nursery producing around 260 Development Fund (RIDF) and completed in May 2008 million seedlings annually for market gardens in will ensure the continued growth of a local tourism south-east Australia. The nursery will be able to industry that supports 2,200 jobs and is worth more secure up 100ML per annum and signifi cantly reduce than $262m annually to the Hepburn Shire region. its demand on the Geelong urban water supply. The RIDF has been running since July 2000 and • Midway, which has an export woodchip mill in provides funding to support economic development and Geelong, will expand its operations to establish a new improvements to business and tourism facilities. In mill near Portland. The project will lead to an November 2007, the RIDF reached a signifi cant investment of $30m and 430 new jobs, and create milestone, leveraging a massive $1b in new investment. exports with a value of around $100m per annum In addition, throughout 2007–08, more new RIDF within fi ve years. projects were considered for funding than in any of the previous eight years, and a total of 46 projects were announced.

The Hepburn Springs Bathhouse is once more a feature attraction in the region.

41 Department of Innovation, Industry and Regional Development Annual Report 07–08 Industrial Estates The services enable businesses to fi nd and manage Since 2000, there have been 14 Industrial Estate Government information, and conduct their licensing and projects completed through the RIDF at various locations in registration transactions with ease, saving time and money. provincial Victoria, including Cobden, Wodonga (2), Cobram, The Business Consultation Database is giving Victorian Echuca, Nathalia, Wangaratta, Swan Hill, Shepparton, small businesses and entrepreneurs the opportunity to Horsham, Bairnsdale, Maryborough (2) and New Gisborne. advise Government agencies on how proposed regulation t Key fi ndings determined during a 2007 evaluation of might affect their business operations. c the 14 estates found that: To date, nearly 200 business operators have registered on e • $8.2m of RIDF funding was used towards $46.5m of the database and some have been invited to take part in Government consultations on proposed new legislation. n total direct project costs expended across all industrial n estates • fl ow-on investment fromo the industrial estates have Divine business idea creached over $244.2m The idea to open a chocolate shop came to Allison • industrial estate programs have created 1,181 full-time, Muller after conducting thorough market research using part-time and seasonal jobs the tools and resources on the Business Victoria website The success of this funding is most apparent in Echuca, www.business.vic.gov.au where Campaspe Shire Council developed a 12-lot estate. Allison utilised many of the templates and resources to To date, the estate has leveraged around $4.3m in help her develop a business and marketing plan, research investment and created more than 60 jobs. As a result, the her local area, register a business name, locate an ideal estate will be expanded (Stage 2). premises, and apply for a food-handling licence. Acknowledging that the Business Victoria website was Developing tourism infrastructure like a Bible to her when starting her business, Allison has Over $300m in tourism investment projects were facilitated recommended the resources of the website to others during 2007–08. hoping to start their own business. Tourism Victoria facilitated the development of the $136m In 2007, Divine Chocolates was a fi nalist in the Micro- Ascott serviced apartment hotel complex in Bourke Street, business award category of the Moonee Valley City Melbourne. Council Business Excellence Awards. The Ascott Group is the world’s largest international serviced residence owner/operator, with close to 15,000 operating Connecting citizens to government serviced residence units in key cities of Europe and the Citizen Access and Transformation (CA&T) is a Asia–Pacifi c and Gulf regions, as well as 6,000 units under dedicated team providing a voice, choice and development, making a total of close to 21,000 units. convenience for Victorians in their dealings with Melbourne is one of Australia’s best performing hotel Government. markets, with occupancy levels consistently around 80 per CA&T is divided into the following business units: cent. The strategically located complex, in the heart of Melbourne’s art and cultural precinct, is well positioned to eServices benefi t from the opening of Melbourne’s new Convention • Victoria Online Centre in 2009, which is expected to fuel even higher • vic.gov.au domain management demand in the medium term. • eGovernment Resource Centre The 398-room development, which is targeted for • Victorian Government Intranet/Extranet – Central completion by the end of 2010, is indicative of Melbourne’s Station strong-performing tourism accommodation sector. • Information Victoria Online Bookshop Tourism Victoria assisted in achieving planning and Information Victoria development approvals for the 2,000 square metre site at 131–135 Bourke Street, while also providing key market • Information Victoria Call Centre intelligence and advice. • Information Victoria Bookshop Doing Business Transformation, Strategy and Service Innovation • Oversight of Victoria’s eGovernment strategy, Putting The World Class Service and the Business Consultation People at the Centre. Current projects include the Database are major DIIRD contributions to the Service Victoria Project, encompassing the iPlace Government’s Reducing the Regulatory Burden program. initiative and renewal of the Victorian Government The World Class Service project has connected 113 state online portal. and federal agencies and all local governments through the In November 2007, CA&T was successfully incorporated Business Victoria website. It enables small businesses to into DIIRD, to continue working across Government, deal more productively with Government through integrated focusing on transforming and simplifying citizens’ and customer-centric services, both online and over the experience when interacting with government. phone. 42 Improved citizen access to information and eServices websites services The eGovernment Resource Centre provides collation Citizen access to information and services through call, and publication of eGovernment research, strategies, counter and portal channels, in particular through policies and best practice. It continues to be a well- Victoria Online and Information Victoria, has been regarded online service, with frequent unsolicited positive improved. Specifi cally: comments. In June 2008, user visits were up over 100 t • 2007–08 performance measures and targets have per cent (19,500 visits)c on the previous year’s average of been met or exceeded e9,700 visits. • Usage of Victoria Online has increased 10 per cent In June 2008, total user visits (849,000 visits) to Central n Station (whole-of-Victorian-Government intranet) were up following the introduction of citizen-centric content n onto the portal 78.8 per cent on the previous year’s average. A survey, o • Each contact offi cer per day has averaged 38 and further investigation via focus groups, has c contacts with citizens either via phone, face-to-face commenced towards making the service even more or email relevant to users. • Users have reported 95 per cent satisfaction with the Government information services timely provision of information to the public During 2007–08, the CA&T business units delivered the • Users have reported 90 per cent satisfaction with following: information resource products, standards and guidelines in response to identifi ed Government • Recieved 2.5 million web visits via the Vic Online, requirements Information Victoria and eGov websites. • A strategic policy has been delivered for the • Answered 6,000 information queries at the Information development of a whole-of-Government information Victoria counter. and service access for improvements in service • Answered 95,300 information queries via the performance and greater public participation. Information Victoria contact centre. Citizen engagement • Sold 75,200 Government publications. • Generated $1.25m in publication revenue. A Citizen Engagement Framework – Crafting the • Ran the Community History Awards for the tenth year, dialogue between Government and Citizen in the 21st which supports Community History Associations and Century was drafted and is being refi ned as a guiding others from rural and regional areas as well as set of principles for any subsequent pilot of online citizen metropolitan communities. engagement. • Ran the Government Expo at the Royal Melbourne During 2007–08, the New Zealand State Services Show, with Government departments and agencies Commission held an interactive workshop, focusing on demonstrating their programs. The expo attracted electronic citizen engagement insights. The workshop more than 60 per cent of the 450,000 show patrons provided participants with practical insights into and was the second most popular exhibition at the contemporary, web-enabled citizen engagement show. methods. There were also developments in • Introduced a new service delivery model and service e-engagement by local governments in Victoria. satisfaction measures to the counter and contact centres, resulting in feedback that 97.3 per cent of all contacts are meeting customer needs and delivering high levels of satisfaction.

Divine Chocolate’s Alison Muller

43 Department of Innovation, Industry and Regional Development Annual Report 07–08 promote

44 Victoria as a great place to live, work, invest, visit and learn

DIIRD promotes the unique characteristics, Brand Victoria created a television commercial for the values and personality of Melbourne and Victoria Australian Open in 2008, broadcast in the USA and Asia to potential new investors, industry partners, throughout the tournament to an estimated audience of markets, students, and visitors. 1.9 billion. The commercial featured the animated Melbourne brandmark, mirroring the brandmark featured on centre court, and afforded an excellent opportunity to Brand Victoria launch the Melbourne brandmark internationally. Brand Victoria is a Victorian Government initiative The June 2008 Brand Health survey results, which providing the means to consistently market Victoria’s key measure consumer awareness and perceptions of international export sectors – tourism, education, Victoria’s and Melbourne’s product strengths, revealed investment, skilled migration, arts and events. The brand that Melbourne: objectives include positioning Victoria internationally as the destination of choice for investors, migrants, tourists • has increased its lead as a city which ‘exudes style and students; capturing Victoria’s individuality, strengths and romance’ and regional diversity; and generating pride among • has increased its lead as the leading shopping Victorians for their State and for Melbourne. destination in 2008 Comprehensive Brand Style Guides were completed in • has increased its positioning as offering ‘interesting 2007–08, including sector-specifi c brandmarks, cafes, bars and nightlife’ brandmark animation and websites developed for each • maintains its number one ranking across the of the four key export sectors – Invest Victoria, Study attributes of theatre, ‘major international sporting and Melbourne, Live in Melbourne and Visit Melbourne. cultural events’ and ‘quality food experiences and These form the cornerstone of Brand Victoria world class restaurants’. communications, providing the basis for ‘on-brand’ communication across all international marketing of These positive results refl ect the brand positioning of Melbourne and Victoria. Melbourne, exemplifi ed in the ‘Lose Yourself in Melbourne’ campaign and several regional campaigns. In addition, Melbourne brandmark signage was secured for hallmark, internationally-broadcast events, including the Australian Tennis Open in January 2008, the 2008 Formula 1 ING Australian Grand Prix and the 2008 Yamaha Superbike World Championships at Phillip Island, contributing signifi cantly to the promotion and marketing of Victoria.

Comprehensive branding and support images are made available for use by Victoria’s key export sectors.

45 Department of Innovation, Industry and Regional Development Annual Report 07–08 Regional and Rural Development Tourism In 2007–08 Regional Development Victoria (RDV) The objectives of the Government’s 10 Year Tourism and continued to focus on encouraging population growth Events Industry Strategy are to create an $18b tourism e through the Make it Happen in Provincial Victoria and events industry by 2016, employing 225,000 t campaign, in partnership with the State’s 48 rural and Victorians. regional councils. o The unique attractions of Melbourne and regional The Make it Happen campaign seeks to encourage Victoria, strongly supported through the Government’sm those living in metropolitan Melbourne to relocate to marketing and events strategy, already drive an industry regional and rural Victoriar by promoting the beneﬁ ts oof employing 159,000 people and worth $10.9b a year. pliving, working and investing in provincial Victoria. The strategy sets out measures to be implemented in 14 In October 2007, a television special ‘Life in Provincial key areas, from building existing strengths in Victoria’s Victoria’, was broadcast on commercial free to air branding and Tourism Victoria’s marketing efforts, to a (Channel 7) from 4.30pm to 5.30pm, and featured focus on long-term growth opportunities such as individuals and business owners who have successfully emerging international markets and regional destination relocated to provincial Victoria. development. This was followed the next day with an eight-page special feature, ‘The Good Life’, in the Sunday Herald Over $300m in tourism investment projects was Sun, highlighting emerging regional hotspots, jobs in facilitated by DIIRD during 2007–08. demand and further case studies from those who have In 2007, domestic visitor expenditure in Victoria made the move to provincial Victoria. increased by 9.6 per cent over the previous year to The integrated marketing campaign raises awareness of $11.8b. Domestic visitors spent $5.9b in regional provincial Victoria and what it has to offer. It also Victoria, a 12.8 per cent increase over the previous supports regional councils to make the most of the year. heightened interest and develop their own localised International visitors to Victoria accounted for $3.1b in campaigns through grants given under the Provincial visitor expenditure for the year ending December Economic Partnerships program. 2007, an increase of 14.6 per cent over the previous The Provincial Victoria Steering Committee, comprising year. representatives from provincial councils, regional Tourism research indicates more and more visitors development bodies and government departments, are choosing to holiday in Victoria and are spending oversees this campaign. more while they are here. Melbourne is outperforming Sydney as the most lucrative domestic tourism destination, with domestic overnight visitors spending $135m more in Melbourne.

The Make it Happen campaign promotes the good life in provincial Victoria.

46 Aviation The June 2008 Brand Health survey results revealed Victorian tourism is dependent on convenient air access: that, compared to the other Australian states and increasing the number of direct international fl ights to territories, Victoria: e Melbourne is crucial to tourism success. During • continues to lead the way in ‘offeringt quality regional 2007–08, Tourism Victoria promoted Melbourne as a food and wine experiences’ destination in demand, and secured a numbero of air • is ‘great to tour by car’ service developments, which will have a major lasting mimpact on Victoria’s aviation and tourism performance. • retains second place for its association with ‘boutique wineries’ o Key achievements included securing a range of new r international air services for Melbourne. Among these, • has increased to equal highest ‘offering spa and p Cathay Pacifi c increased its Melbourne-Hong Kong wellness experiences’. services from double daily to triple daily; Korean Air Victoria’s regional food and wine experiences are began direct services between Seoul and Melbourne highlighted in the ‘Inspired by Gippsland’ campaign as three times a week, and Qantas announced that it well as the early 2008 High Country ‘Adventures would commence a new service between Melbourne Happen’ campaign. The State’s natural attractions are a and Shanghai. key feature of the refreshed Grampians ‘Space To Regional tourism Breathe’ campaign, while spa and wellness experiences are highlighted in Daylesford’s ‘Live Happily Ever After’ Tourism Victoria has long focused on assisting the campaign. tourism industry at a regional level to respond to and rise above challenges. A series of marketing campaigns A new Regional Tourism Action Plan 2008–2011 has have been developed for each of Victoria’s 10 tourism been under development during 2007–08 to provide regions in cooperation with Regional Campaign further support and direction to Victoria’s regional Committees. tourism industry. Key cross-regional issues identifi ed for attention include: The aim is to provide an integrated way to promote the regions and their sub-destinations through a mix of • industry structures brand, tactical, informational, public relations and trade • investment attraction activities. • destination marketing and skills The campaigns promote both the rational and emotional • service standards. benefi ts of Victoria’s tourism regions, and encourage visitors to experience the core product strengths and the key villages and towns within each region.

Stills from Regional Victoria’s marketing campaigns

47 Department of Innovation, Industry and Regional Development Annual Report 07–08 Major events Investment Events are now a recognised brand for Melbourne and In 2007–08, the Department helped to grow Victoria’s Victoria. Tourism Victoria’s brand research puts economy and promote Victoria as a world-class Melbourne ahead of any other Australian city with a investment location by providing a number of services to reputation for hosting major international sporting and facilitate investment projects in all sectors across cultural events. Victoria. Major events bring international and interstate visitors to Investment facilitation services were provided to Melbourne and Victoria who might not otherwise visit. 280 projects with a total potential capital expenditure of Of the total number of event visitors to Australia, $24.8b and 10,900 jobs. Confirmed new investments 44 per cent visit Victoria. totalled $3,254m and will lead to the creation of Major events also encourage new investments to 8,212 jobs in Victoria. Victoria, in turn attracting even more visitors. Services included providing specialist advice on Victoria’s impressive list of hallmark and special events Victoria’s development approvals process, coordinating includes the Australian Tennis Open, Melbourne Food & statutory approvals, providing site location services, Wine Festival, RipCurl Pro, L’Oreal Melbourne Fashion identification of infrastructure and utility requirements, Festival, the ING Formula 1 Australian Grand Prix, providing advice on the investment climate, and Australian Moto GP, Melbourne Winter Masterpieces continuing to support clients. and the World Road Cycling Championships. Invest Assist helped facilitate the delivery of a Visitors spend money on accommodation, sightseeing, range of major projects, including: eating out, theatre, attractions and shopping, and many • Satyam Computer Services (Geelong) for a take pre or post-event tours to regional Victoria. This is $75m new software development and training all part of the wider benefit of events. campus, generating 2,000 jobs Victoria’s Major Events Strategy focuses on the • Costco (Docklands) invested $60m to establish retention, acquisition, staging and management of major Australia’s first Costco warehouse store, generating events in Victoria. In 2007, Victoria attracted over 250 jobs 324,000 international visitors to major events. • Timbercorp (north-western Victoria) invested $279m to establish several large almond and olive plantations over three years, generating 60 jobs • Harvey Norman $300m Home-maker Site (Springvale) to establish the largest home-maker centre in Australia, generating 1,200 jobs • Aldi $140m Distribution Centre (Lyndhurst) to establish a new distribution centre for the Aldi supermarket chain, generating up to 300 jobs.

The Melbourne brandmark at the 2008 Australian Tennis Open was broadcast to 1.9 billion people worldwide.

48 In 2007–08 the Government committed $86.2m under Major events held in the ICV during 2007–08 the Investment Support Program. It is anticipated that included: these contracts will result in $681m in direct capital • Joint Strike Fighter Technology Conference and expenditure and the creation of 2,047 full-time direct e Reception jobs. These jobs are primarily distributed across the ICT t (1,500 jobs) and aviation (533 jobs) sectors.o• Asia-Paciﬁ c Economic Cooperation Business Advisory Summit For those projects that received investment-related grant mpayments in 2007–08, and whose legal agreements • Council of Australian Governments Conference o were signed following 1 July 2002, the Government has • 2008 Melbourne International Venture Capital r expended 90 per cent of the grant value. These have Conference. achieved 134 per cent of the capital expenditure and 94 p More than 19,000 local and international guests used per cent of the expected employment against their the ICV facilities during 2007–08 – only slightly behind contractually agreed targets. Without grant payments the usage that followed the legacy of the tied to employment and capital expenditure targets, Commonwealth Games. those companies that did not meet their expected employment targets did not receive the full grant Victorians Abroad is a new initiative launched in payment. 2007–08. It aims to keep Victoria’s expatriate network connected, informed and better able to assist Victoria. It The Department obtained information relating to 63 engages Victorian expatriates and other friends of facilitated projects that matured in 2007–08. The Victoria such as university alumni, to promote Victoria as companies that undertook these projects invested 98 a great place to live, work, visit and invest, and to per cent of the amount expected to be invested at the support Victorian companies looking to enter new time of conﬁ rmation, and achieved 116 per cent of their marketplaces. employment forecast. Victorians Abroad will also help Victorian professionals DIIRD manages the Investment Centre Victoria (ICV) as a working overseas to remain connected, informed and whole-of-Government facility designed to promote the supported, while assisting them to be aware of jobs in State’s business and investment credentials. Facilities Victoria and to return home with their new-found within the Centre are used for multiple government and international perspectives and experiences. corporate functions and promotional events. Victorians Abroad has been launched in major international markets of the United States, the United Kingdom and China and has already attracted over 3,000 members.

49 Department of Innovation, Industry and Regional Development Annual Report 07–08 Information and Communications Technology This year, the Department exceeded its ICT sector job e and investment facilitation annual targets (800 jobs and t $150m) with 2,059 jobs and $247.9m value of capital o investment attracted. The following key ICT investments are among the m Department’s 2007–08 successes: o • Microsoft’s strategicr $250,000 Malware Protection pCentre Lab – one of only three facilities of this type outside the USA – will be located in Melbourne and will employ 20 people. • Irish software solutions company, FINEOS will locate its new Asia Paciﬁ c headquarters in Melbourne, creating 100 high-end ICT jobs over the next three years. • iGATE Global Solutions (international technology company) opened a national operations centre in Ballarat, creating 40 new jobs.

Communications Strategic Communications works closely with the divisions to provide support and to deliver campaigns that progress the Department’s primary objectives. Communications activities ensure the Victorian community is kept informed about key Departmental programs and initiatives. Strategic Communications also delivers essential communications support to the Department’s six Ministers. During 2007–08, communications specialists provided more than 600 speeches and approximately 900 media releases, as well as media and event coordination services.

50 Satyam Computer Services e chooses Victoriaot In April 2008, Indian ICT multinational Satyam development, collaboration and training, and mComputer Services announced its decision to locate a administration. It will also include accommodation and ro new software development and training facility at recreation facilities. Deakin University, Waurn Ponds. This exciting p Satyam delivers software development services, development will create 2,000 new jobs in the Geelong engineering services, systems integration, enterprise region by 2015, and boost the Victorian economy by resource planning solutions, customer relationship $175m annually within a decade. management, supply chain management, product DIIRD worked with Deakin University and the City of development, electronic commerce, consulting and IT Greater Geelong to secure Satyam’s $75m Technology outsourcing. The new centre will train and employ and Learning Centre. Satyam will construct purpose- local ICT professionals to develop and provide holistic built facilities to emulate those based in Hyderabad, IT solutions for Satyam’s 570 customers, including India. The development will house activities such as major Australian corporates. core product development and support, research and casestudy Premier John Brumby and Satyam’s founder and Chairman, Mr Rama Raju, with Deakin University students at the announcement of Satyam’s Technology and Learning Centre.

51 Department of Innovation, Industry and Regional Development Annual Report 07–08 shape

Scientists at the Australian Stem Cell Centre and in NSW will work together on groundbreaking research.

52 the economic development policy agenda

The Department provides high-quality policy and Climate Change legislative initiatives, research, advice and Professor Ross Garnaut describes climate change as a Ministerial support, and continues to infl uence diabolical policy problem. It is a global challenge that the economic policy agenda at the state and requires complementary local, national and international national levels. responses. Following Australia’s ratifi cation of the Kyoto Protocol Infl uencing the National Policy and the proposed 2010 introduction of a national Agenda emissions trading scheme, a new climate change response is required from Victoria. Over the past year Innovation DIIRD has been proactive in supporting the development Innovation is crucial to Australia’s economic growth and of Victoria’s new climate change policy. to our ability to tackle social and environmental Victoria needs to capture the full economic and social challenges. By increasing our capacity to innovate, we benefi ts offered by new technologies and emergent better position the economy to adapt to future global trends. uncertainties. The Department has been analysing the impacts of In March 2007, the Victorian Government released a climate change on industries and regions. A key focus of proposal for a national innovation agenda, National the Department’s work program is the identifi cation of Innovation Agenda Proposal – Driving a Stronger Future opportunities for Victorian industry that are emerging for Australia through a New National Approach to from the response to climate change. The Department is Innovation (NIA). commissioning research with the Manufacturing Industry The Department coordinated the proposal in substantial Consultative Council into the impacts on manufacturing consultation with state and territory governments and industries. other innovation stakeholders, further building Victoria’s The specifi c challenge of climate change for Provincial leadership on issues of cross-jurisdictional signifi cance. Victoria was recognised in the Moving Forward Update Building on past national and collaborative reform efforts released in June 2008. This announced a series of such as the National Reform Agenda (NRA), the initial initiatives to aid energy and water effi ciency, supporting NIA proposal called for the active involvement of all regional communities to plan for an environmentally Australian governments in the development of a new sustainable future, and the introduction of a new national approach to innovation. Business Response Program to support industries to The core objective of the NIA was achieved, with respond to climate change. innovation now high on the list of Commonwealth The Department also provided support to the Premier’s Government priorities and the commencement of the April 2008 Climate Change Summit at State Parliament Commonwealth Review of the National Innovation – the ‘Climate of Opportunity’ – convened to begin System (NIS). setting a new, urgent agenda for Victoria on climate The NIA proposal was delivered to the panel undertaking change. the Review of the NIS as a document representing the broad interests of a range of innovation stakeholders, ‘Our legacy to the next generation must be an and it continues to inform the Review of the National innovative and resilient Victoria, able to adapt Innovation System. to a low carbon future and take advantage of the new jobs, technologies and markets that The Department’s Deputy Secretary of Strategy and will fl ow from it.’ Coordination was invited to Chair the Intergovernmental Working Group (formed to support the NIS Review Premier John Brumby, The Climate of Opportunity process), in recognition of Victoria’s leadership on the summit paper NIA. More than 100 Victorians attended the ‘Climate of Opportunity’ Summit and represented a wide range of views from the Victorian community – including business, industry, farming, and the regions. The Department is contributing to the development of Victoria’s White Paper on Climate Change, to be released in 2009. The paper will prioritise actions that will set Victoria on the path towards reducing emissions by 60 per cent below 2000 levels by 2050. 53 Department of Innovation, Industry and Regional Development Annual Report 07–08 Toyota Hybrid Camry retail leasing regulation across states and territories to Toyota Australia is the acknowledged leader in the reduce the red tape involved in complying with different production of low-emission vehicles. Worldwide, Toyota regulatory regimes. sold 429,000 hybrid-electric cars last year. The company Industrial Relations is targeting global sales of 1 million hybrids per year by With the election of a new Federal Government in 2007 early next decade. and the proposal for a new national Industrial Relations An intensive effort was undertaken by DIIRD to attract (IR) system, the Victorian Government is working production of the Hybrid Camry to Altona. cooperatively on the development of national e The odds against this investment were overwhelming as arrangements in regards to the new IR framework. p the Thailand Government offered unprecedented The Victorian Government has made submissions to the incentives for this project through Thailand’s newly a Productivity Commission’s inquiry into maternity leave, introduced Green Car program.hthe Senate Inquiry into the Workplace Relations sFocusing on the importance of this project, the Victorian (Transition to Forward with Fairness) Bill, on the and Federal Governments worked closely with Toyota Commonwealth’s proposed National Employment Australia to make a strong business case for Altona. Standards and the AIRC’s award modernisation program as well as the Australian Fair Pay Commission’s On 10 June 2008, Toyota announced that production of Minimum Wage Review. the Hybrid Camry will commence at its Altona plant from the beginning of 2010. Victoria continued its strong advocacy on skilled and business migration to the Commonwealth through the Regional and Rural Development Ministerial Council on Immigration and Multicultural The Department advocates Victoria’s interests in the Affairs and the Commonwealth-States Working Party on national environment through its work in informing the Skilled Migration. development of Regional Development Australia, and Victoria is also advocating on the needs of providing committee support for the national disadvantaged jobseekers. Through its submission to representative body, the Standing Committee on the Commonwealth’s review of national employment Regional Development (SCORD). services, Victoria argued for the development of a new SCORD is the committee of senior offi cials across all national employment system that focuses on the needs jurisdictions that support the Regional Development of jobseekers that have the most signifi cant barriers to Council (a Ministerial Council). SCORD seeks to employment. encourage greater cooperation and collaboration among The Working Families Council was established in 2007. the three levels of Government in relation to regional It is an advisory group comprising representatives from development. industry and unions as well as academic experts, The Department is assisting SCORD with regional water providing advice to Government on strategies that conservation and infrastructure projects, population and benefi t workers, families and the community. The demographic issues in regions, regional community Council developed a submission for the recent Australia capacity building and regional broadband access. 2020 Forum held by the Federal Government. Small Business Skills Reform During the year, the Government made a submission to Victoria continues to take the lead in setting the National the Productivity Commission’s national inquiry into the Reform Agenda in the vocational education and training retail tenancy leases market across Australia. Victoria is system. leading the retail tenancy working group established to At its December 2007 meeting, the Council of Australian champion efforts in this area. The aim is to harmonise Governments (COAG) agreed to change the nature of

Skills training remains a priority for Victoria’s VET sector.

54 Commonwealth-State funding arrangements. Members industry advisory bodies to work collaboratively with agreed to focus more on outputs and outcomes, their respective national Industry Skills Councils in underpinned by a commitment from the Commonwealth developing advice on industry skills needs, training Government to provide incentive payments to drive the products and curriculum issues new reforms. • revised the governance arrangements for industry In March 2008, COAG further endorsed a policy advisory bodies to ensure they operate in line with the framework for education, skills and workforce current expectations of government for the development as well as implementation plans for several governance of publicly-funded organisations. key Commonwealth election commitments.e Federal Reviews and Trade Agreements pIn April 2008, the Securing our Future Economic The Department engages industry through regular a Prosperity discussion paper was released, signalling the consultation, undertakes Victoria-specifi c research into Victorian Government’s proposed directions for h the likely impact of initiatives on the Victorian economy, reforming the skills system in Victoria. s and provides advice to the Federal Government about The reforms outlined in the document seek to: industry concerns. • increase the number of individuals and businesses During 2007–08, the Department coordinated the accessing training development of Victorian Government submissions to the • develop an easier-to-navigate VET system that Federal Reviews of Export Policies and Programs, the engages more effectively with individuals and Automotive Industry, and the Textile Clothing and businesses Footwear (TCF) Industries. These Reviews have a critical • ensure that the system is more responsive and bearing on future national policy directions in these areas. fl exible to the changing skills needs of businesses Victoria’s submissions articulated clear policy positions and individuals regarding future support for the automotive and TCF • create a stronger culture of lifelong learning. industries, both of which are of particular signifi cance to The skills reform package has been developed through the State. extensive consultation and more than 150 submissions In the context of the major global challenges facing these from stakeholders. sectors, the Victorian Government’s submissions to these Financing skills development reviews strongly support the retention of appropriate industry assistance mechanisms as being essential to Preliminary work has commenced on possible changes promoting innovation, minimising disruption and to funding arrangements that may arise from the sustaining critical mass within these industries at a time of proposed reforms of the VET system. These reforms are signifi cant change. detailed in the discussion paper Securing our Future Economic Prosperity. The submission to the Export Review also outlined Victoria’s position on export development and trade Some of the possible changes could include introducing liberalisation priorities for both federal and state contestability for higher-level qualifi cations and changing governments. the fee structure for TAFE institutions. The Department’s advocacy role ensures Victoria’s Industry Training Boards interests are well represented at the national level. DIIRD The industry training advisory system provides advice on coordinated and prepared Victorian Government vocational education and training policy and industry submissions into Commonwealth Government feasibility priorities. Key elements of the advisory system include studies for potential free trade agreements with India and the 16 industry training advisory bodies, industry Indonesia, and provided information to the representatives, DIIRD, national industry advisory bodies, Commonwealth Government on existing free trade whole-of-Victorian Government working groups and agreement negotiations such as those with China, Japan other stakeholders in the training system. and Chile. In addition, the Department conducted research into the impact of non-tariff barriers on Victorian In 2007–08, the Department: exports in key exporting countries. • strengthened the links between DIIRD’s industry The Victorian Government’s submission to the Federal development staff and industry advisory bodies – to Review of Export Policies and Programs, recommended promote mutual understanding of their respective a signifi cant boost to Federal support through specifi c activities and to improve the quality of advice on export programs such as the Export Market Development industry skills needs that is provided to the Victorian Grant Scheme (EMDG). Skills Commission (VSC) Victoria is an active participant in Ministerial and offi cial • reviewed the 2005–08 operation of performance and trade policy consultation forums, and was the lead funding agreements between the VSC and industry proponent for the establishment of the COAG Ministerial advisory bodies, and recommended the terms of new Council on International Trade, which met for the fi rst time agreements which address the VSC’s strategic in August 2008. objectives for 2008–11 • encouraged greater cooperation between bodies at the state and national levels by requiring the Victorian 55 Department of Innovation, Industry and Regional Development Annual Report 07–08 Associate Professor John Armstrong, Philosopher-in -Residence at the Melbourne Business School, speaks at the fi rst 2008 Alfred Deakin Lecture casestudy From DNA to Deep Space

To participate in shaping the future, rather than simply innovation and its importance to all aspects of our be shaped by it, the community needs ready access to economy and society. authoritative and reliable sources of information, 2008 series curator, Robyn Archer AO, invited opinion and balanced public debate. audiences to take a journey from ‘DNA to Deep Space’ This is the role the Alfred Deakin Innovation Lectures and hear 57 of the fi nest Australian and international are designed to play. thinkers and innovators speak on topics including: how ideas become active in the world; the latest research The Alfred Deakin Innovation Lectures are an initiative in neuroscience and ‘smart drugs’; planning and of the Innovation Economy Advisory Board, established building cities for the future; education in the age of by the Victorian Government to advise on the future digital communications; and space travel. direction and implementation of its innovation and economic development policies. The Victorian In June 2008, 4,500 people attended the 19 free public Government is committed to continuing the Alfred lectures in person – at Federation Square in Deakin Lectures as a major biennial event in Melbourne, and in Ballarat, Geelong, Albury/Wodonga Melbourne and provincial Victoria, and DIIRD plays a and Churchill in Gippsland. Australia-wide, thousands critical role in bringing each series to fruition. of people heard the lectures broadcast on ABC Radio National and ABC TV 2, or accessed them online at ABC Following the successful 2001, 2005 and 2007 series, Fora, SlowTV, or the Deakin Lectures and ABC in 2008 the popular Deakin Lectures once again websites. celebrated big ideas and focused brilliant minds on 56 Infl uencing the State Policy Agenda opportunities in the Defence Industry under the strategic framework A Roadmap for Victoria’s Defence Industries. Establishing priorities for vocational education The study identifi ed key vocational-level skill needs of and training enterprises engaged in Defence Industry MSE in In 2005, all Victorian TAFE institutes agreed to re-align Victoria. training to those industries with the greatest identifi ed higher need for government-funded training. In 2007, Industrial Relations analysis showed that this re-alignment was achieved in accordance with Victorian Skills Commission priorities. Amendment to the Equal Opportunity Act A project to calculate completion rates for In 2007, the Department coordinated an amendment to apprenticeships and traineeships has resulted in a more Victoria’s Equal Opportunity Act 1995, which ensures reliable and informative measure for calculating workers are not discriminated against for trying to fi nd a completion rates. Using this improved methodology, the decent balance between their work and family average completion rate for apprentices in Victoria is responsibilities. The family responsibilities amendments 65.2 per cent and for trainees is 54.9 per cent. to the Act took effect from 1 September 2008. Initial statistical analysis undertaken by Curtin University The Victorian Equal Opportunity and Human Rights identifi ed the factors contributing to an individual’s Commission and Industrial Relations Victoria, in likelihood to complete or not complete an consultation with employer organisations, unions and apprenticeship or traineeship. In response, the Centre non-government organisations have developed for Post Compulsory Education and Lifelong Learning at guidelines to assist employers and employees in the University of Melbourne has undertaken further understanding these changes to the Act. exploration and analysis. Working Families Council Consultations with apprentices, trainees, employers and The Working Families Council held its fi rst meeting in training providers are currently helping further explore August 2007 and meets quarterly. Current priorities and analyse the reasons for these differences. include implementation of a social marketing campaign New and Emerging Skills Research to promote work and family balance and pay equity, and an employer recognition program. The impetus for the New and Emerging Skills Research is to work with TAFE Institutes to research emerging skill Online Toolkit for parents and carers areas and identify training solutions. Funding of $1.2m over 4 years from 2007–08 was The study, ‘Skills for Victoria’s Emerging Bioeconomy’, allocated for the development and implementation of an analysed key vocational skill needs of enterprises online toolkit for parents and carers and their prospective y engaged in biotechnology-related manufacturing and employers. It is anticipated that the fi rst stage of the tud bio-production in Victoria. This project supports the aims toolkit will be online in August 2008. s of enabling commercialisation of biotechnology in e The toolkit identifi es creative ways to meet the needs of s Victoria as outlined in the 2007 Victorian Biotechnology ca employees returning to the workforce, as well as the Strategic Development Plan. needs of business, including a focus on quality part-time The study, ‘Skills for Victoria’s Defence Industry Military jobs offering the same protections and opportunities as Systems and Electronics (MSE) Sector’, investigated the full-time work. important and fast-evolving MSE sector. This project supports building Victoria’s capacity and capability to meet current market demands and emerging business

Outworker Information Services Ofﬁ cers promoting employment rights for clothing industry outworkers at a Vietnamese festival.

57 Department of Innovation, Industry and Regional Development Annual Report 07–08 Work and Family Balance in Regional Victoria: education and training facilities, strong support services Pilot Project such as transport, distribution and logistics, fi nancial, In 2007, the Department undertook a pilot project to and professional and technical. look into work and family issues facing regional However, there are multiple new challenges. These Victorians. The research focused on Bendigo, Colac, include the current global crisis, a carbon constrained Horsham and Latrobe City, and included an analysis of future, water supply constraints, and the challenge of statistical data, consultation with key stakeholders, driving continuous innovation in the context of ever employee focus groups and community forums. shortening product cycles and rapid technological In 2007, the Department, together with RMIT University, change. In addition, we face growing skills shortages e was successful in an application for a $299,116 while demands for higher skill levels continue to p Australian Research Council (ARC) Linkage Grant to increase.a build on the original $80,000 pilot project. They are now The Victorian Industry and Manufacturing Statement undertakingh a collaborative three-year research project: contains initiatives that address these challenges and sThe State of Play – Employment Regulation and Work capitalise on these opportunities. It will take a and Family Balance in Victorian Regions. This research is collaborative, broad-ranging focus, refl ecting the nature investigating work and family balance across 11 of modern industry policy, which seeks to build Victorian regional areas. capabilities and synergies across the entire economy. The Statement will therefore closely align with other Pay Equity in Local Government major policy initiatives, including the next generation In an effort to drive pay equity in the Local Government Victorian Innovation Strategy, climate change initiatives sector, the Department initiated an audit process under across Government, and the Skills for Innovation the direction of a Local Government Working Party, Strategy which positions Victoria at the forefront of new made up of representatives from the Municipal skills capabilities. Association of Victoria, the Victorian Employers Chamber of Commerce and Industry (VECCI), the Going Green in Castlemaine Australian Services Union and regional local government. With the help of a $50,000 grant from the Planning for The City of Greater Bendigo and Moreland City Council Change program implemented through DIIRD, four agreed to participate in an audit of their payrolls. An major employers in Castlemaine will investigate ways to audit serves to build internal capabilities and identify reduce greenhouse gas emissions and become more issues related to the workforce. From this action energy effi cient. research, the Department is developing case study material to be used as a model for other local Manufacturing across Mount Alexander Shire is worth government employers, with its main message that pay an estimated $325m per annum, and the sector equity is a key performance indicator of a ‘high employs more than 1,000 people (approximately 23 per performance workplace’. cent of the region’s full-time employees). The four employers involved in the project – KR Castlemaine, Flowserve, Victoria Carpets and Mount Alexander Investment Hospital – are part of the innovative Maine’s Power In 2007–08, the Department undertook a series of project, supporting Mount Alexander Shire Council’s aim initiatives and projects examining the key role of to reduce greenhouse gas emissions by 30 per cent by investment in shaping Victoria’s economic agenda. 2010 (from 2006 levels). Initiatives included: The project represents a unique partnership between • commissioning research by Monash University to more than 20 government, community and private better identify foreign direct investment into Victoria organisations. It aims to drive local action on climate • exploring trade and investment opportunities for change, while protecting local jobs and boosting Victoria from Latin America economic development. • publishing the fi rst edition of the DIIRD Investment Activity Report Regional and Rural Development • providing policy advice regarding the South East The Department shapes the interests of regional and Asian Victorian Government Business Offi ce. rural Victoria through its support for the Regional Development Advisory Committee, Regional Development Council and Regional Cities Victoria and Manufacturing and Industry Rural Councils Victoria group. At the close of 2007–08, the Victorian Industry and DIIRD informs and infl uences Victoria’s climate change Manufacturing Statement is being prepared for release. response through a number of interdepartmental The Statement conveys how the Government will direct committees and working groups such as Water, Energy, its industry policy to focus on the drivers of a modern Drought, Natural Disasters, and Land and Biodiversity at economy and the challenges currently ahead. a time of Climate Change. Many core strengths have been central to the success The Department researches trends in, and performance of Victoria’s industry and manufacturing sectors to date, of, the Victorian economy and drives key parts of the including our sophisticated research base, world-class economic development agenda through leading and 58 participating in a number of studies such as the Small Business Economic Assessment of Water Infrastructure Study, The Department develops and advocates policies to Regional Industry Study, Sustainable Communities promote a business environment conducive to small Initiative (with CSIRO), Housing Study, Community business growth, through small business policy and Indicators Victoria, and Work and Family Balance in legislative initiatives and Ministerial support. Regional Victoria. DIIRD activities under the Regulatory Burden initiative During 2007–08, the Victorian Government announced have included promotion of business consultation to another major drought package. The Department assist Government regulators to assess the impact of provided a numbere of new initiatives including Rural Skills regulatory proposals on small business. pConnect, the Business Transition Program and Planning for Change. These programs represent an important a Energy shift in policy in that they recognise the ongoing impacts h of the drought and help to facilitate the adjustment In December 2007, following extensive facilitation by s process. The Planning for Change program has already DIIRD’s Invest Assist, the Minister for Planning approved attracted strong interest from across the State. a site specifi c planning scheme amendment to enable Solar Systems Pty Ltd to construct a $10m solar energy Economic assessment of Water research and development facility at Bridgewater near Infrastructure Bendigo. The Victorian Government has committed itself to a This project will be the fi rst phase of a $420m project to number of projects designed to augment build a 154-megawatt large-scale solar power station in Melbourne’s water supplies. Two projects include: north-west Victoria. This will be the largest and most effi cient solar power station of its kind in the world, • the Food Bowl Modernisation Project – which providing enough electricity for the annual requirements aims to accrue water savings from upgrading of 45,000 homes and representing a 400,000 tonne irrigation infrastructure; and reduction per annum of greenhouse gas emissions. • the Sugarloaf Pipeline – which will transport This innovative project assists in delivering on the some of the Food Bowl water savings to Victorian Government’s renewable energy and Melbourne. sustainability policies and targets. Signifi cantly, the A 2007 report from Deloitte Insight Economics project has been awarded up to $50m under the analysing the gross regional and Statewide Victorian Government’s Energy Technology Innovation economic impacts of spending on the construction Strategy (ETIS) program and up to $79.5m in and maintenance phase of the Food Bowl Commonwealth Government funding. Modernisation project and the Sugarloaf Pipeline A key step in the development of the large-scale project revealed: the construction and maintenance of both is the technical optimisation of Solar Systems’ projects would result in $610m increase in gross technology at the Bridgewater test facility. The test 1 state product (GSP). facility will comprise two fi elds of mirrors, two towers of The increase in GSP as a result of the Sugarloaf 35 and 75 metres, basic offi ces, a workshop, supporting Pipeline is $229m, and the Food Bowl infrastructure and a caretaker’s residence. The facility will Modernisation results in a $381m increase. be built and operational by 2009 and will create 950 construction and 44 ongoing jobs. 1 Over the period from 2008 to 2020, the construction and maintenance of both projects jointly results in a NPV 5% increase in GSP relative to the base case of $610m in 2005 prices (using a 5 per cent real discount rate).

Artist’s impressions of the Heliostat Concentrator Photovoltaic (HCPV) tower and the heliostat ﬁ eld at the Bridgewater Solar Energy Facility.

59 Department of Innovation, Industry and Regional Development Annual Report 07–08 strengthen

60 Departmental capability

In 2007–08, a substantial task was undertaken across the Department to reconfi gure the Leadership organisation – consolidating machinery-of- Government changes and rearranging core The Department’s Aspiring to Lead program was revamped in the 2007–08 fi nancial year. The Aspiring to activities around key economic levers, better Lead program is a major plank of the Department’s enabling the Department to respond to changing leadership and gender strategies and seeks to balance industry needs, environmental conditions and gender representation at management levels. The Government priorities. program targeted high potential females in an eight- month learning journey, and 15 participants completed The new Departmental structure enables a greater focus formal course and project work activities. on international coordination, sector development, industry liaison and regional development, while achieving a more consistent approach to delivering Youth Employment Scheme (YES) programs and services for Victoria. The Department has participated in the YES program Machinery-of-Government changes in 2006–07 required since its inception and remains committed to meeting the administrative integration into DIIRD’s systems of the Government’s Jobs for Victoria annual employment Citizen Access and Transformation, and Workforce goals and targets while building trainees’ skills, and Participation. In May 2008, Major Projects Victoria (MPV) providing employment and career pathways for young was also transferred to DIIRD from the (former) people. Department of Infrastructure. In 2007–08, the Department accepted 54 traineeship placements, with a considerable number of these in Leadership, Integrity, Impartiality, metropolitan and regional TAFE Colleges. The majority of Responsiveness, Accountability and YES placements are in the administrative, information technology and clerical category, with trainees receiving Respect valuable on-the-job training through diverse roles. Encouraging a productive and inclusive culture where people treat others with respect and dignity lies at the YES Trainee forefront of all the Department’s activities. The values (above) underpin the Code of Conduct for the Victorian Jaqueline Clingan joined the Department as a YES Public Sector, and have been adopted as the Trainee, on a 12-month placement in the Human Department’s organisational values. Resources branch. Living these values can help create a high-performance At the 2007 Victorian Training Awards, Jackie won workplace that is characterised by positive relationships. Outstanding Student of the Year – Trainee. Towards just such a high-performance workplace, 620 Jackie impressed senior colleagues throughout the DIIRD employees participated in workshops providing Department with her hardworking enthusiasm and her practical tips on embracing the values in their everyday dedication to continuous improvement, and her respect working lives and incorporating case scenarios relevant for others. Jackie’s problem-solving skills, initiative and to the work environment. resilience contributed to her success, including her work with physically disabled adults and with Sudanese refugees. According to her manager, Tony Lang, a YES Trainee supervisor of many years, Jackie had been, ‘The standout trainee I have either supervised or had dealings DIIRD’s Jackie Clingan, Victoria’s 2007 Outstanding with’. Trainee of the Year Within months, Jackie had successfully completed all her training modules and undertaken additional workplace training to facilitate her rapid progression from basic administrative duties into a responsible ongoing role in the Human Resources Branch. Skills Victoria has run the Victorian Training Awards for 54 years now, to celebrate the students, trainees and staff who have achieved excellence in their chosen fi elds.

61 Department of Innovation, Industry and Regional Development Annual Report 07–08 Mentoring program • A comprehensive values booklet is provided to new employees as part of their induction to the Business and community leaders often cite mentors as Department. a key factor in their success. Through the Department’s 2007 Mentoring Program, 51 mentees and their • Agency personnel and contractors are informed of h their obligation to abide by the Code of Conduct and t mentors enjoyed the chance to meet and share experiences, achievements and challenges, while demonstrate the values during their employment. g engaging in a more informal approach to building • The Department’s values are being progressively n successful organisational relationships. integrated into erelevant learning and development During 2007–08, the Department also continuedr its programs. involvementt in the following external leadership During the year, the Department also designed and sdevelopment programs: developed a comprehensive ‘Values@Work’ training • ANZSOG Executive Fellows program program. To be delivered in the coming months, this program integrates organisational values with employee • ANZSOG Executive Master of Public Administration behavioural programs. • Cranlana Future Leaders Program. The Department remains committed to workplace diversity and supports individuals so that every Graduate recruitment and retention employee has the opportunity to contribute fully to the Through the VPS Graduate Recruitment and Department’s business goals. Initiatives in 2007–08 Development System, in 2007 the Department hosted include: nine graduates, six of whom commenced permanent • Continued roll-out of values training across DIIRD to roles in the Department. DIIRD’s investment in graduate encompass all staff recruitment and development has increased to 11 graduates in 2008. • Review and development of the Department’s equity policies, in particular, integrating Harassment, Discrimination and Bullying policies into an ‘Unacceptable Behaviour’ Policy and providing a Integrity better-integrated process for dealing with workplace concerns and issues The values have also been embedded into a range of human resource activities, including the following • Active participation in the review of the Equal initiatives: Opportunity Act 1995 • The Department’s Recognition and Reward program • Commitment to, and implementation of, the has been updated to reward employees who exhibit Department’s Disability Action Plan and its six key behaviour consistent with the values. deliverables, and continuation of the VPS service agreement with Disability WORKS Australia • The Department’s values have been incorporated into DIIRD’s performance management systems (both • The Women’s Network which held two well-attended, executive and non-executive). successful networking events on issues of women’s leadership, community outreach and involvement. • Position descriptions for job advertisements highlight the values.

With DIIRD Women’s Network coordinators Janelle Murphy, Louise Chamberlain and Lisa Brookman, is inspirational guest speaker Christine Murorunkwere, founder of Rwandan Children’s Charity ABANA.

62 Trials of video conferencing focused on one-to-one webcam capabilities in regional offi ces, and signifi cant Impartiality progress was made with trials of high-quality multi-cast equipment over DIIRD’s IT network. Once trials have h Merit and Equity concluded, video conferencingt is expected to be rolled out, resulting in signifi cantly fewer work-hours spent Recruitment and selection processesg that uphold merit travelling to meetings. nand equity are fully operational within the Department. e Policies, guidelines and associated documentation The Departmental Contacts Management System r enshrining merit and equity continue to be promoted was implemented during 2007–08, providing a robust t through training, marketing material, and advice and authoritative database of contact information on the s provided by the People Services Branch. Department’s numerous stakeholders. It consolidates data previously held in multiple systems, now made The authority to exempt vacancies from advertisement in accessible via numerous views. prescribed circumstances rests with the Secretary and/ or authorised delegates. During 2007–08, a total of 48 roles were exempted from advertisement. New technologies: Intranet DIIRD’s new intranet will be launched in late 2008, Issue resolution delivering a sophisticated business tool, which will enable staff to work more effi ciently and effectively, to The Department’s issue resolution process is structured fi nd relevant information quickly, and to more easily to conform to the Public Administration (Review of connect and collaborate with co-workers. Actions) Regulations established in 2005. The Department’s process focuses on early intervention and The project has required a new technology platform, the informal resolution processes, wherever possible. There development of new content structure and the were two issues lodged in 2007–08. implementation of ongoing management processes. A signifi cant feature of the new intranet is its ability to allow people to establish communities of interest within the Department on work topics such as climate change Responsiveness and carbon emissions.

New technologies: ICT Strategy Implementation of the Department’s ICT Strategy Accountability continued in 2007–08 to further enhance business functions and productivity. A central Grant Administration Unit has been During 2007–08, the international business offi ces were established within Corporate Services and Development. connected to the DIIRD IT network and wireless access Improvements to application, approval and reporting was enabled for mobile staff to use the Department’s processes have been implemented to increase the systems. An electronic procurement and payment effi ciency of grant program delivery. module (‘i-procurement‘) has been implemented for the The Department has adopted Grant Program Best Skills Division and this system enhancement will be Practice Principles to guide best practice in the design, rolled out to the other divisions during 2008–09. delivery and evaluation of grant programs. A Machinery-of-Government changes have been comprehensive review of all grant programs has incorporated into the Departmental reporting, including a commenced to ensure consistency with best practice Chart of Accounts, designed to refl ect the new principles. organisational structure and reporting. The DIIRD Evaluation Policy supports a strategic and Two reviews of the Departmental fl eet were also coordinated approach to evaluation identifying the key completed: the fi rst to further rationalise the principles, requirements, roles and responsibilities consolidation of a vehicle pool, and the second to focus associated with evaluation across the Department. Changes to the DIIRD Evaluation Policy to improve on reducing CO2 emissions. The Department conducted scoping and benchmarking for a whole-of-Government reporting processes were developed for and adopted by initiative, whereby car-pool facilities and desktop IT Strategy and Management Team (SMT). support can be provided through a shared-services arrangement.

63 Department of Innovation, Industry and Regional Development Annual Report 07–08 Respect

Occupational Health and Safety The Department is committed to providing and h maintaining a safe and healthy work environment for t employees, trainees, contractors and other members of g the public. Accordingly, a range of initiatives, policies and programs were implemented during 2007–08, including: n • DIIRD Health and Safety Committee meetsr quarterly e to discusst policy issues and to develop proactive sOH&S strategies • Minutes of Committee meetings are now provided for DIIRD Strategy and Management Team meetings • OH&S training program was conducted for DIIRD managers, which 65 per cent of managers and 45 per cent of executive ofﬁ cers attended • Health and Safety Representatives undertook refresher training • Eyesight Testing policy was revised and promulgated • Policies and procedures were drafted for Manual Handling and Hazard Identiﬁ cation. The Department has maintained its strong record in providing a safe and healthy work environment, demonstrated by minimal WorkCover claims and a low rate of workplace incidents and injuries recorded.

DIIRD staff participating in Ride To Work Day cycled in from all parts of Melbourne.

64 ﬁ nancial report

65 Department of Innovation, Industry and Regional Development Annual Report 07-08 Department of Innovation, Industry and Regional Development Financial report for the ﬁ nancial year ended 30 June 2008

Introduction This ﬁ nancial report covers the Department of Innovation, Industry and Regional Development as an individual entity and is presented in the Australian currency. The Department of Innovation, Industry and Regional Development is a government department of the State of Victoria. The Department was established pursuant to an order made by the Premier under the Administrative Arrangements Act 1993. Its principal address is: Department of Innovation, Industry and Regional Development 121 Exhibition Street Melbourne VIC 3000 A description of the nature of the Department’s operations and its principal activities is included in the Report of Operations section of the annual report which does not form part of this ﬁ nancial report. For queries in relation to our reporting please call 9651 9999, or visit our website at www.diird.vic.gov.au

66 Contents

Operating statement 68 Balance sheet 69 Statement of changes in equity 70 Cash fl ow statement 71 Notes to the Financial Statements 72 Note 1. Summary of signifi cant accounting policies 72 Note 2. Departmental (controlled) outputs 81 Note 3. Administered (non-controlled) items 85 Note 4. Income 86 Note 5. Expenses 86 Note 6. Restructuring of administrative arrangements 88 Note 7. Receivables 89 Note 8. Other assets 90 Note 9. Property, plant and equipment 90 Note 10. Non-current assets classifi ed as held for sale and liabilities directly associated with assets classifi ed as held for sale 93 Note 11. Investments accounted for using the equity method 93 Note 12. Intangible assets 94 Note 13. Payables 95 Note 14. Interest bearing liabilities 95 Note 15. Provisions 96 Note 16. Superannuation 97 Note 17. Leases 97 Note 18. Commitments for expenditure 98 Note 19. Contingent assets and contingent liabilities 100 Note 20. Financial instruments 100 Note 21. Cash fl ow information 104 Note 22. Movements in equity 105 Note 23. Summary of compliance with annual parliamentary appropriations 106 Note 24. Ex-gratia payments 107 Note 25. Annotated receipts agreements 107 Note 26. Trust account balances 108 Note 27. Responsible persons 111 Note 28. Remuneration of executives 111 Note 29. Remuneration of auditors 112 Accountable offi cer’s and chief fi nance offi cer’s declaration 113 Auditor-General’s Report 114

67 Department of Innovation, Industry and Regional Development Annual Report 07-08 Operating statement for the ﬁ nancial year ended 30 June 2008 Notes 2008 2007 $’000 $’000

Income Revenue Output appropriations 4(a) 1,413,965 879,717 Regional Infrastructure Development Fund appropriations 4(a) 91,000 92,000 Resources received free of charge or for nominal consideration 4(a) – (1,883) Other revenue 4(b) 38,086 6,787 Total revenue 1,543,051 976,621 Other income 4(c) (358) (242)

Total income 1,542,693 976,379

Expenses Grants and other payments 5(a) (1,130,665) (714,487) Employee beneﬁ ts 5(b) (69,361) (57,893) Depreciation and amortisation 5(c) (4,032) (3,754) Resources provided free of charge or for nominal consideration (5,069) 15 Capital asset charge (170,755) (84,735) Supplies and services 5(d) (81,118) (79,561) Finance costs 5(e) (154) (131) Impairment of assets – – Total expenses (1,461,154) (940,546) Share of net proﬁ ts/(losses) of associates and joint ventures accounted using the equity method – – Net result for the period 22(c) 81,539 35,833

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

68 Balance sheet as at 30 June 2008 Notes 2008 2007 $’000 $’000 Current assets Cash and cash equivalents 20, 21 302,099 259,701 Receivables 7, 20 113,245 74,593 Other 8 1,215 743 416,559 335,037 Non-current assets classiﬁ ed as held for sale 10 177 57 Total current assets 416,736 335,094 Non-current assets Receivables 7, 20 1,436 1,436 Investments accounted for using the equity method 11 20,000 15,000 Property, plant and equipment 9 40,205 196,019 Intangible assets 12 265 – Total non-current assets 61,906 212,455

Total assets 478,642 547,549 Current liabilities Payables 20, 13 105,920 103,738 Interest bearing liabilities 14, 20 1,252 1,171 Provisions 15 21,450 18,331 Other 1(h) 10,000 10,000 138,622 133,240 Liabilities directly associated with non-current assets classiﬁ ed as held for sale 10 178 58 Total current liabilities 138,800 133,298 Non-current liabilities Interest bearing liabilities 14, 20 955 1,199 Provisions 15 1,305 1,705 Other 1(h) 30,000 40,000 Total non-current liabilities 32,260 42,904 Total liabilities 171,060 176,202 Net assets 307,582 371,347 Equity Contributed capital 22(b) 70,152 215,456 Reserves 22(a) 6,142 6,142 Accumulated surplus 22(c) 231,288 149,749 Total equity 307,582 371,347 Contingent assets and contingent liabilities 19 Commitments for expenditure 18

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

69 Department of Innovation, Industry and Regional Development Annual Report 07-08 Statement of changes in equity for the fi nancial year ended 30 June 2008 Notes 2008 2007 $’000 $’000 Total Equity at the beginning of the fi nancial year 371,347 316,978 Gain/(loss) on property revaluation 22(a) – 2,060 Net income recognised directly in equity – 2,060 Net result for the period 22(c) 81,539 35,833 Total recognised income and expenses for the period 81,539 35,833 Transactions with the State in its capacity as owner (145,304) 16,476 Total equity at the end of the fi nancial year 307,582 371,347

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

70 Cash fl ow statement for the fi nancial year ended 30 June 2008 Notes 2008 2007 $’000 $’000 Cash fl ows from operating activities Receipts Receipts from Government 1,476,286 1,043,121 Receipts from other entities 11,754 20,178 Goods and Services Tax recovered from the ATO 30,064 35,945 Interest received 16,172 – Total receipts 1,534,276 1,099,244

Payments Payments of grants and transfer payments (1,130,665) (719,759) Payments to suppliers and employees (189,331) (204,376) Goods and Services Tax paid to the ATO (1,911) (2,954) Capital asset charge (170,755) (84,735) Interest and other costs of ﬁ nance paid (154) (130) Total payments (1,492,816) (1,011,954) Net cash ﬂ ows from/(used in) operating activities 21(c) 41,460 87,290

Cash ﬂ ows from investing activities (Payment for)/ contribution to investment (5,000) 50,000 Payments for property, plant and equipment (4,470) (18,189) Proceeds from sale of assets 466 – Net cash ﬂ ows from/(used in) investing activities (9,004) 31,811

Cash fl ows from fi nancing activities Proceeds from capital contribution by State Government 7,964 16,287 Proceeds from administrative arrangements 2,975 – Proceeds from borrowings – 953 Repayment of fi nance leases (997) (390) Net cash fl ows from/(used in) fi nancing activities 9,942 16,850

Net increase/(decrease) in cash and cash equivalents 42,398 135,951 Cash and cash equivalents at the beginning of the ﬁ nancial year 259,701 123,750 Cash and cash equivalents at the end of the ﬁ nancial year 21(a) 302,099 259,701

The above cash ﬂ ow statement should be read in conjunction with the accompanying notes. Non cash transactions are disclosed in note 21(b).

71 Department of Innovation, Industry and Regional Development Annual Report 07-08 Notes to the ﬁ nancial statements for the ﬁ nancial year ended 30 June 2008

Note 1. Summary of signiﬁ cant accounting policies

(a) Statement of compliance The fi nancial report is a general purpose fi nancial report which has been prepared on an accrual basis in accordance with the Financial Management Act 1994, applicable Australian Accounting Standards (AAS), which includes the Australian accounting standards issued by the Australian Accounting Standards Board (AASB), AAS29 Financial Reporting by Government Departments, interpretations and other mandatory professional requirements. The fi nancial report also complies with relevant Financial Reporting Directions (FRDs) issued by the Department of Treasury and Finance, and relevant Standing Directions (SD) authorised by the Minister for Finance. The fi nancial report was authorised for issue by H. Ronaldson (Secretary – Department of Innovation, Industry and Regional Development) on 4 September 2008.

(b) Basis of Preparation The fi nancial report has been prepared on a historical cost basis, except for the revaluation of certain non-current assets and fi nancial instruments. Cost is based on the fair values of the consideration given in exchange for assets. In the application of AASs, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision, and future periods if the revision affects both current and future periods. Accounting policies are selected and applied in a manner which ensures that the resulting fi nancial information satisfi es the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported. The accounting policies set out below have been applied in preparing the fi nancial statements for the year ended 30 June 2008 and the comparative information presented for the year ended 30 June 2007.

(c) Reporting entity The Department is an administrative agency acting on behalf of the Crown. The fi nancial statements include all the controlled activities of the Department of Innovation, Industry and Regional Development. The Department has the following controlled entity: • Victoria Trade and Investment Offi ce Pty Ltd, a wholly owned subsidiary operating in China was acquired on 1 July 2005 to enable the Department to engage in trade and investment promotion activities in the South East Asian region. The company’s chairperson is the Secretary of the Department. In addition, the following units of the Department are included in the reporting entity: • Regional Development Victoria established under the Regional Development Victoria Act 2002; • Offi ce of the Small Business Commissioner established under the Small Business Commissioner Act 2003; and • Workplace Rights Advocate established under the Workplace Rights Advocate Act 2005. The fi nancial activities of Tourism Victoria, and Victorian Skills Commission (VSC) are not included in the Department’s reporting entity. These entities prepare their own fi nancial statements and are reported separately. Administered items The Department 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. Administered resources are accounted for using the accrual basis of accounting. Transactions and balances relating to these administered resources are not recognised as Departmental revenues, expenses, assets or liabilities within the body of the fi nancial statements, but are disclosed in Note 3. Except as otherwise disclosed, administered items are accounted for on the same basis and using the same accounting policies as for Departmental items. Specifi c fi nancial disclosures related to administered items can be found in Notes 3 and 6.

72 Note 1. Summary of signifi cant accounting policies (continued) Other administered activities on behalf of parties external to the Victorian Government The Department of Innovation, Industry and Regional Development 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 fi nancial statements as they are administered on a fi duciary and custodial basis, and therefore not controlled by the Department. Joint venture entities Joint ventures are contractual arrangements between the Department and one or more other parties to undertake an economic activity that is subject to joint control. Joint control only exists when the strategic fi nancial and operating decisions relating to the activity require the unanimous consent of the parties sharing control (the venturers). The interest in a joint venture partnership is accounted for in the fi nancial statements using the equity method. Under the equity method, the share of the profi ts or losses of the partnership is recognised in the operating statement, and the share of movements in reserves is recognised in reserves in the statement of changes in equity. The cumulative post-acquisition movements are adjusted against the carrying value of the jointly controlled entity. Details relating to the joint venture are set out in Note 11. The Department of Innovation, Industry and Regional Development (‘the Department’) has a joint venture interest with Monash University in the Australian Regenerative Medical Institute (ARMI). ARMI was established to construct and operate a facility which will promote Victoria as a global leader in regenerative medical research, foster and develop existing research collaboration on both domestic and overseas projects and provide a major site for both undergraduate and post graduate training programs.

(d) Objectives and funding The Department’s key objectives for the current year are to: (i) Position Victoria as an attractive destination for investment that stimulates growth and development across the State. (ii) Work with the business sector and other key partners to encourage exports. (iii) Facilitate and support the development of innovative industries. (iv) Ensure sustained economic and industry development of regional Victoria. (v) Ensure effective marketing and promotion of Victoria in a global economy. The Department is predominantly funded by accrual based Parliamentary appropriations for the provision of outputs.

(e) Outputs of the Department Information about the Department’s output activities, and the expenses, revenues, other income, assets and liabilities which are reliably attributable to those output activities, is set out in the output activities schedule (Note 2). Information about expenses, revenues, other income, 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 (see Note 3). As a consequence of machinery-of-government changes announced , and effective on 2 September 2007 and 2 November 2007, output details reﬂ ect the Department’s actual period of responsibility. Comparative amounts for the prior year have not been adjusted. Details of assets and liabilities transferred into the Department and other information relating to machinery-of-government changes are reﬂ ected in Note 6.

(f) Events after reporting date Assets, liabilities, income or expenses arise from past transactions or other past events. Where the transactions result from an agreement between the Department and other parties, the transactions are only recognised when the agreement is irrevocable at or before balance date. Adjustments are made to amounts recognised in the ﬁ nancial statements for events which occur after the reporting date and before the date the statements are authorised for issue, where those events provide information about conditions which existed at the reporting date. Note disclosure is made about events between the balance date and the date the statements are authorised for issue where the events relate to conditions which arose after the reporting date and which may have a material impact on the results of subsequent years.

(g) Goods and services tax Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet. Cash fl ows are presented on a gross basis. The GST components of cash fl ows arising from investing or fi nancing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash fl ow.

73 Department of Innovation, Industry and Regional Development Annual Report 07-08 Note 1. Summary of signiﬁ cant accounting policies (continued)

(h) Income recognition All income received by the Department is generally required to be paid into the Consolidated Fund. Income becomes controlled and is recognised by the Department when it is appropriated from the Consolidated Fund by the Victorian Parliament and applied to the purposes defi ned under relevant Appropriations Act. Additionally, the Department is permitted under section 29 of the Financial Management Act 1994 to have certain revenue annotated to the annual appropriation. The revenue which forms part of a section 29 agreement is recognised by the Department and the receipts paid into the Consolidated Fund as an administered item. At the point of revenue recognition, section 29 provides for an equivalent amount to be added to the annual appropriation. Examples of receipts which can form part of a section 29 agreement are Commonwealth specifi c purpose grants, Municipal Council special purpose grants, the proceeds from the sale of assets, and revenue from the sale of products and services. Output appropriations Revenue from the outputs the Department provides to Government is recognised when those outputs have been delivered and the relevant Minister has certifi ed delivery of those outputs in accordance with specifi ed performance criteria. Resources received free of charge or for nominal consideration Contributions of resources received free of charge or for nominal consideration are recognised at their fair value when the transferee obtains control over them, irrespective of whether restrictions or conditions are imposed over the use of the contributions, unless received from another government department or agency as a consequence of a restructuring of administrative arrangements. In the latter case, such transfer will be recognised at carrying 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. Other revenue Amounts disclosed as revenue are, where applicable, net of returns, allowances and duties and taxes. All amounts of revenue over which the Department does not have control are disclosed as administered income in the schedule of administered income and expenses (see Note 3). Revenue is recognised for each of the Department’s major activities as follows: • Trust revenue Trust revenue received for a specifi c purpose is deferred and recognised progressively in the operating statement in the period in which conditions relating to the payment of the funds to third parties have been met. Major trusts include Regional Industry Development Fund (RIDF), and Australian Synchrotron Facility. All other trust revenue is recognised in the operating statement when it is earned by the Department and any unapplied amounts as at the end of the reporting period are recognised in the balance sheet under ‘Other’ liabilities until the associated expenditure is incurred. The Department recognised revenue from the Commonwealth Government to co-fi nance the operations of the Australian Synchrotron Facility. Remaining funds are held in the Australian Synchrotron Trust Fund. Accordingly, the Department recognises current and non current unearned revenue in the balance sheet based on the timing of the estimated future payments to be made. Other income Other income consists of gains/losses on disposal of property, plant and equipment. Any gain or loss on disposal is recognised at the date control of the asset is passed to the buyer and is determined after deducting from the proceeds the carrying value of the asset at that time. Administered income • Commonwealth grants Grants payable by the Commonwealth Government are recognised as income when the Department gains control of the underlying assets. Where such grants are payable into the Consolidated Fund, they are reported as administered income. For reciprocal grants, the Department is deemed to have assumed control when the performance has occurred under the grant. For non-reciprocal grants, the Department is deemed to have assumed control when the grant is received or receivable. Conditional grants may be reciprocal or non-reciprocal depending on the terms of the grant. Commonwealth grants are disclosed as income in the schedule of Administered Items (see Note 3).

(i) Expenses Grants and other payments Grants and other payments to third parties are recognised as an expense in the reporting period in which they are paid or payable. They include transactions such as grants, subsidies and other transfer payments to Tourism Victoria, the Victorian Skills Commission, and Film Victoria. Employee benefi ts Employee benefi ts expenses include all costs related to employment including wages and salaries, leave entitlements, redundancy payments and superannuation contributions. These are recognised when incurred, except for contributions in respect of defi ned benefi t plans. 74 Note 1. Summary of signifi cant accounting policies (continued) Defi ned benefi ts superannuation plans The amount charged to the operating statement in respect of defi ned benefi t superannuation plans represents the contributions made by the Department to the superannuation plan in respect to the current services of current Department staff. Superannuation contributions are made to the plans based on the relevant rules of each plan. The Department of Treasury and Finance centrally recognises the defi ned benefi t liability or surplus of most Victorian government employees in such funds. Depreciation Depreciation is provided on property, plant and equipment, including buildings, but excluding land. Depreciation is generally calculated on a straight line basis so as to write off the net cost or other revalued amount of each asset over its expected useful life to its estimated residual value. Leasehold improvements are depreciated over the period of the lease or its estimated useful life, whichever is shorter, using the straight line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period. Details of estimated useful lives of assets used in calculation of deprecation rates are included in Note 9. Amortisation Intangible assets with fi nite useful lives are amortised on a systematic (typically straight-line) basis over the asset’s useful life. Amortisation begins when the asset is available for use, that is, when it is in the location and condition necessary for it to be capable of operating in the manner intended by management. The amortisation period and the amortisation method for an intangible asset with a fi nite useful life are reviewed at least at the end of each annual reporting period. In addition, an assessment is made at each reporting date to determine whether there are indicators that the intangible asset concerned is impaired. If so, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount. Details of estimated useful lives of assets used in calculation of amortisation rates are included in Note 9. Resources provided free of charge or for nominal consideration Resources provided free of charge or for nominal consideration are recognised at their fair value. Capital asset charge The capital assets charge 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 budgeted carrying amount of applicable non-current physical assets of the Department’s portfolio, including other General Government entities such as the TAFE institutions. Finance Costs Finance costs are recognised as expenses in the period in which they are incurred and mainly relate to fi nance lease charges. Impairment of assets Assets are assessed annually for indications of impairment, except for: • fi nancial assets (refer Note 1(j)); and • non current assets held for sale (refer Note 1(j)). If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written off by a charge to the operating statement except to the extent that the write down can be debited to an asset revaluation reserve amount applicable to that class of asset. It is deemed that, in the event of the loss of an asset, the future economic benefi ts arising from the use of the asset will be replaced unless a specifi c decision to the contrary has been made. The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell. This is due to the fact most assets held by the Department are not primarily used for cash generating purposes and in the event of their loss, the future economic benefi ts arising from the use of the asset will be replaced unless a specifi c decision to the contrary has been made. Recoverable amount for assets held primarily to generate net cash infl ows is measured at the higher of the present value of future cash fl ows expected to be obtained from the asset and fair value less costs to sell. Supplies and services Supplies and services generally represent cost of goods sold and the day-to-day running costs, including maintenance costs, incurred in the normal operations of the Department. These items are recognised as an expense in the reporting period in which they are incurred. The carrying amount of any inventories held for distribution is expensed when distributed.

75 Department of Innovation, Industry and Regional Development Annual Report 07-08 Note 1. Summary of signifi cant accounting policies (continued) (j) Assets All non current assets, including Crown Land, controlled by the Department are reported in the balance sheet. Cash and cash equivalents Cash and cash equivalents comprise cash on hand and cash at bank, deposits at call and highly liquid investments with an original maturity of 3 months or less, which are readily convertible to known amounts of cash and are subject to insignifi cant risk of changes in value. For the cash fl ow statement presentation purposes, cash and cash equivalents includes bank overdrafts, which are included as current interest bearing liabilities on the balance sheet. Receivables Receivables consist predominantly of debtors in relation to the provision of goods and services, accrued investment income and GST input tax credits recoverable, amounts advanced to other entities (Synchrotron). Receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective interest rate method, less any accumulated impairment. A provision for doubtful receivables is made when there is objective evidence that the debts will not be collected. Bad debts are written off when identifi ed. Property, plant and equipment Land and buildings are measured initially at cost, then subsequently at fair value. Plant, equipment and vehicles are measured at cost less accumulated depreciation and impairment. Crown land is measured at fair value with regard to the property’s highest and best use after due consideration is made for any legal or constructive restrictions imposed on the asset, public announcements or commitments made in relation to intended use of the asset. Revaluations of non-current assets Non-current physical assets measured at fair value are revalued in accordance with the Financial Reporting Direction (FRD) 103C: Non Current Physical Assets. This revaluation process normally occurs every fi ve years, based upon the asset’s Government Purpose Classifi cation. Revaluation increments or decrements arise from differences between carrying value and fair value. Revaluation increments are credited directly to equity in the 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 the net result, the increment is recognised as income in determining the 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 revaluation reserve in respect of the same class of assets, they are debited to the revaluation reserve. Revaluation increases and revaluation decreases relating to individual assets within an asset class are offset against one another within that class but are not offset in respect of assets in different classes. Non current assets held for sale Non-current assets (and disposal groups) classifi ed as held for sale are measured at the lower of carrying amount and fair value less costs to sell, and are not subject to depreciation. Non-current assets and disposal groups are classifi ed as held for sale if their carrying amount will be recovered through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset’s sale (or disposal group sale) is expected to be completed within one year from the date of classifi cation. 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, and an appropriate proportion of variable and fi xed overheads. Leased assets Leases of property, plant and equipment are classifi ed as fi nance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classifi ed as operating leases. Finance leases are recognised as assets and liabilities at amounts equal to the fair value of the lease property or, if lower, the present value of the minimum lease payment, each determined at the inception of the lease. The leased asset is depreciated over the shorter of the estimated useful life of the asset or the term of the lease. Minimum lease payments are allocated between the principal component of the lease liability, and the interest expense calculated using the interest rate implicit in the lease, and charged directly to the operating statement. Contingent rentals associated with fi nance leases are recognised as an expense in the period in which they are incurred. Operating lease payments, including any contingent rentals, are recognised as an expense in the operating statement on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern of the benefi ts derived from the use of the leased asset. The cost of leasehold improvements is capitalised as an asset and depreciated over the remaining term of the lease or the estimated useful life of the improvements, whichever is the shorter. 76 Note 1. Summary of signifi cant accounting policies (continued) (k) Liabilities Payables Payables consist predominantly of creditors and other sundry liabilities. Payables are initially recognised at fair value, then subsequently carried at amortised cost and represent liabilities for goods and services provided to the Department prior to the end of fi nancial year that are unpaid, and arise when the Department becomes obliged to make future payments in respect of the purchase of these goods and services. Fair value is determined in the manner described in Note 20. Financial Guarantees Financial guarantee contracts are recognised as a liability at the time the guarantee is issued. The liability is initially measured at fair value, and if there is a material increase in the likelihood that the guarantee may have to be exercised, at the higher of the amount determined in accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets and the amount initially recognised less cumulative amortisation, where appropriate. In the determination of fair value, consideration is given to factors including the overall capital management / prudential supervision framework in operation, the protection provided by the State Government by way of funding should the probability of default increase, probability of default by the guaranteed party and the likely loss to the Department in the event of default. The Department has reviewed its fi nancial guarantees and determined that there is no material liability to be recognised for fi nancial guarantee contracts at 30 June 2008 and at 30 June 2007. The value of any loans and other amounts guaranteed is disclosed in Note 3 and Note 19. Interest bearing liabilities Interest bearing liabilities are recorded initially at fair value, net of transaction costs. Subsequent to initial recognition, interest bearing liabilities are measured at amortised cost with any difference between the initial recognised amount and the redemption value being recognised in profi t and loss over the period of the interest bearing liability using the effective interest rate method. Fair value is determined in the manner described in Note 20. Provisions Provisions are recognised when the Department has a present obligation, the future sacrifi ce of economic benefi ts is probable, and the amount of the provision can be measured reliably. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cashfl ows estimated to settle the present obligation, its carrying amount is the present value of those cashfl ows. Employee benefi ts (i) Wages and salaries, annual leave and sick leave Liabilities for wages and salaries, including non-monetary benefi ts, annual leave and accumulating sick leave expected to be settled within 12 months of the reporting date are recognised in the provision for employee benefi ts in respect of employee services up to the reporting date, classifi ed as current liabilities and measured at their nominal values. Those liabilities that are not expected to be settled within 12 months are recognised in the provision for employee benefi ts as current liabilities, measured at present value of the amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement. (ii) Long service leave Liability for long service leave (LSL) is recognised in the provision for employee benefi ts. Current liability Unconditional LSL (representing 7 or more years of continuous service) is disclosed as a current liability even where the department does not expect to settle the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months: The components of this current LSL liability are measured at: • present value – component that the department does not expect to settle within 12 months; and • nominal value – component that the department expects to settle within 12 months. Non current liability Conditional LSL (representing less than 7 years of continuous service) is disclosed as a non-current liability. There is an unconditional right to defer the settlement of the entitlement until the employee has completed the requisite years of service. This non current LSL liability is measured at present value. 77 Department of Innovation, Industry and Regional Development Annual Report 07-08 Note 1. Summary of signifi cant accounting policies (continued) (iii) Termination benefi ts Termination benefi ts are payable when employment is terminated before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefi ts. The Department recognises termination benefi ts when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefi ts as a result of an offer made to encourage voluntary redundancy. Benefi ts falling due more than 12 months after balance sheet date are discounted to present value. Employee benefi ts on-costs Employee benefi ts on-costs (payroll tax, workers compensation, superannuation, annual leave and LSL accrued while on LSL taken in service) are recognised separately from provision for employee benefi ts.

(l) Commitments Commitments include those operating, capital and other outsourcing commitments arising from non-cancellable contractual or statutory sources and are disclosed at their nominal value.

(m) Contingent assets and contingent liabilities Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of a note and, if quantifi able, are measured at nominal value. A contingent asset is a possible asset that arises from past events and whose existence will be confi rmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. A contingent liability is a possible obligation that arises from past events and whose existence will be confi rmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.

(n) Equity Contributions by owners Additions to net assets which have been designated as contributions by owners are recognised as contributed capital. Other transfers that are in the nature of contributions or distributions have also been designated as contributions by owners. Transfers of net assets arising from administrative restructurings are treated as distributions to or contributions by owners.

(o) Foreign currency All foreign currency transactions during the ﬁ nancial year are brought to account using the exchange rate in effect at the date of the transaction. Foreign monetary items at reporting date are translated at the exchange rate existing at reporting date. Non- monetary assets carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined. Exchange differences are recognised in proﬁ t or loss in the period in which they arise.

(p) Functional and presentation currency The functional currency of the Department is the Australian dollar, which has also been identiﬁ ed as the presentation currency of this Department.

(q) Rounding of amounts Amounts in the ﬁ nancial report have been rounded to the nearest thousand dollars, unless otherwise stated.

(r) New accounting standards and interpretations Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2008 reporting period. The Department of Treasury and Finance assesses the impact of these new standards and advises departments and other entities of their applicability and early adoption where applicable. As at 30 June 2008 the following standards and interpretations (applicable to departments) had been issued but were not mandatory for ﬁ nancial years ending 30 June 2008. The Department has not, and does not intend to, adopt these standards early.

78 Note 1. Summary of signifi cant accounting policies (continued) Standard/Interpretation Summary Applicable Impact on departmental for annual fi nancial statements reporting periods beginning or ending on Interpretation: 12 Service Concession AASB approved an Australian Interpretation 12, equivalent to Beginning The impact of any changes Arrangements IFRIC 12, applying to private sector operators, but explicitly 1 Jul 2008 that may be required cannot excludes accounting for public sector grantors be reliably estimated and is not disclosed in the fi nancial report. AASB 2007-2: Amendments to Amendments arise from the release in February 2007 of Beginning The impact of any changes Australian Accounting Standards Interpretation 12 Service Concession Arrangements. 1 Jul 2008 that may be required cannot arising from AASB Interpretation 12 be reliably estimated and is not disclosed in the fi nancial report. AASB 1004: Contributions AASB decided to relocate requirements on contributions from Beginning Impact expected to be AAS 27, AAS 29 and AAS 31, substantively unamended, into 1 July 2008 insignifi cant. AASB 1004 as part of its short-term review of AAS 27, AAS 29, and AAS 31. AASB 1050: Administered Items As part of the short-term review of AAS 27, AAS 29, and AAS Beginning Impact expected to be 31, AASB decided to relocate the requirements for the 1 Jul 2008 insignifi cant. disclosure of administered items from AAS 29, substantively unamended (with some exceptions as noted in Appendix A) into a new topic-based standard AASB 1050. AASB 1051: Land Under Roads The new pronouncement AASB 1051 Land under Roads Beginning Not Applicable. provides the option to recognise or not recognise land under 1 Jul 2008 roads acquired before the end of the fi rst reporting period ending on or after 31 December 2007. Land under roads acquired after 31 December 2007 should be accounted for following requirements of AASB 116 Property, Plant and Equipment. The State is yet to decide whether to change its policy. Until a conclusion is reached, the current default position is that land under roads will not be recognised. AASB 1052: Disaggregated Disclosures AASB decided to relocate requirements relating to reporting of Beginning Impact expected to be disaggregated information from AAS 27 and AAS 29 into AASB 1 Jul 2008 insignifi cant. 1052, a new topic-based standard, as part of its short-term review of AAS 27, AAS 29 and AAS 31. AASB 2007-09: Amendments to An accompanying amending standard to amend existing Beginning Impact expected to be Australian Accounting Standards accounting standards as part of the short term review of AAS 1 Jul 2008 insignifi cant. arising from the review of AAS 27, AAS 27, AAS 29 and AAS 31 in December 2007. 29 and AAS 31 Revised Interpretation 1038: Editorial amendments to interpretation 1038 due to changes to Beginning Impact expected to be Contributions by Owners made to AASB 1004. 1 Jul 2008 insignifi cant. Wholly-Owned Public Sector Entities AASB 8: Operating Segments Supersedes AASB 114 Segment Reporting. Beginning Not Applicable. 1 Jan 2009 AASB 2007-3: Amendments to An accompanying amending standard, also introduced Beginning Impact expected to be Australian Accounting Standards consequential amendments into other Standards. 1 Jan 2009 insignifi cant. arising from AASB 8 [AASB5, AASB6, AASB 102, AASB 107, AASB 119, AASB 136, AASB1023 and AASB 1038] AASB 2007-6: Amendments to Option to expense borrowing cost related to a qualifying asset Beginning All Australian government Australian Accounting Standards had been removed. Entities are now required to capitalise 1 Jan 2009 jurisdictions are currently still arising from AASB 123 [AASB 1, AASB borrowing costs relevant to qualifying assets. actively pursuing an 101, AASB 107, AASB 111, AASB 116, exemption for government AASB 138 and Interpretations 1 & 12] from capitalising borrowing costs. AASB 2007-8: Amendments to Editorial amendments to Australian Accounting Standards to Beginning Impact expected to be Australian Accounting Standards align with IFRS terminology. 1 Jan 2009 insignifi cant. arising from AASB 101 79 Department of Innovation, Industry and Regional Development Annual Report 07-08 Note 1. Summary of signifi cant accounting policies (continued)

(s) Prospective accounting changes GAAP-GFS Convergence The AASB has recently approved AASB 1049: Whole of Government and General Government Sector Financial Reporting, which will apply to future fi nancial reports of the Victorian general government sector. In October 2007, the AASB extended AASB 1049 to also apply to fi nancial reports of the Whole of Government economic entity. The standard, which will be applicable for annual reporting periods beginning on or after 1 July 2008, converges Australian Generally Accepted Accounting Principles (GAAP) and Government Finance Statistics (GFS) reporting. it also includes additional disclosure requirements. The effect of any changes to recognition or measurement requirements as a result of this new standard is being evaluated. Comparatives Where practicable, comparative amounts are classifi ed on a basis consistent with the current year with the exception of the following: Cashfl ow – 2007 prior year comparatives have been adjusted to correct allocation between ATO tax paid, and payments to suppliers. Note 3 – 2007 prior comparatives have been adjusted to refl ect $761m in Investments. Note 20 – 2007 prior year comparatives have been adjusted to exclude Statutory items.

Note 2. Departmental (controlled) outputs A description of each output group of the Department during the year ended 30 June 2008, together with the objectives of each output group are summarised below.

Investment Attraction Description of Output The primary strategic objective of this output is to position Victoria as an attractive destination for investment that stimulates growth and development across the State. While Invest Victoria plays a lead role in the delivery of this output, signiﬁ cant contributions are made from across the Department. Objectives This output makes a signiﬁ cant contribution to the achievement of the following key Government outcomes: • more quality jobs and thriving, innovative industries across Victoria; and • growing and linking all of Victoria. This is achieved by promoting Victoria in the global economy as a world class investment location and by identifying, targeting and facilitating strategically important investments. Invest Victoria provides a whole-of-Victoria Government single entry point approach for investors.

Trade Development Description of Output The primary strategic objective of this output is to work with the business sector and other key partners to encourage exports. The Offi ce of International Business and Export plays a leading role in the delivery of this output with contributions from across the Department. Objectives This output makes a signifi cant contribution to the achievement of the following key Government outcomes: • more quality jobs and thriving, innovative industries across Victoria; and • growing and linking all of Victoria. This is achieved by assisting fi rms, including small to medium enterprises to develop and expand exports, import replacement and by facilitating cooperative arrangements between industry and Government to optimise trade opportunities.

Developing Innovative Industries Description of Outputs The primary strategic objective of this output group is to facilitate and support innovation across Victorian business and industry. These outputs are delivered collaboratively across the Department, with speciﬁ c contributions from the Innovation Economy Advisory Board, Business Development, Industrial Relations Victoria, Business Services and the Small Business Commissioner. 80 Note 2. Departmental (controlled) outputs (continued) Objectives These outputs make a signiﬁ cant contribution to the achievement of the following key Government outcomes: • more quality jobs and thriving, innovative industries across Victoria; • growing and linking all of Victoria; • high quality education and training for lifelong learning; and • a fairer society that reduces disadvantage and respects diversity. This is achieved by investing in strategic knowledge industries, infrastructure and services and fostering the adoption and commercialisation of ideas and research. These Divisions also provide market intelligence information and research on economic and industry trends and facilitate and support priorities and approaches to foster a skilled and productive workforce.

Regional Development Description of Outputs The primary strategic objective of this output group is to ensure sustained economic and industry development of provincial Victoria. Regional Development Victoria takes a leading role in the delivery of these outputs. Objectives These outputs make a signiﬁ cant contribution to the achievement of the following key government outcomes: • more quality jobs and thriving, innovative industries across Victoria; • growing and linking all of Victoria; and • building friendly, conﬁ dent and safe communities. This is achieved by developing and facilitating investment and infrastructure projects that contribute to economic growth in provincial Victoria and by targeting population growth and the number of innovative enterprises in provincial Victoria.

Marketing Victoria Description of Output The primary strategic objective of this output is to effectively market Victoria in a global economy. Tourism Victoria plays a leading role in the delivery of this output. Objectives This output makes a signiﬁ cant contribution to the achievement of the following key Government outcomes: • more quality jobs and thriving, innovative industries across Victoria; and • growing and linking all of Victoria. This is achieved by positioning Victoria as a distinct, competitive and fair business environment, exporter and tourist destination and by promoting and marketing these characteristics nationally and overseas. Tourism Victoria supports and develops events for Victoria to maximise economic and tourism beneﬁ ts and maximises the dissemination of tourism information about Victoria through online channels.

ICT Policy and Programs Description of Output The primary strategic objective of this output is to implement the Government’s ICT agenda through a range of programs that promote a strategic approach to broadband telecommunications and undertaking programs designed to promote and grow a competitive Victorian ICT industry and grow Victoria’s ICT capacity. Objectives This output makes a signiﬁ cant contribution to the achievement of the following key Government outcomes: • more quality jobs and thriving, innovative industries across Victoria; • growing and linking all of Victoria; and • sound ﬁ nancial management. This output provides the Government with strong policy development in relation to ICT, and to implement a range of targeted industry development and telecommunication programs.

81 Department of Innovation, Industry and Regional Development Annual Report 07-08 Note 2. Departmental (controlled) outputs (continued)

Skills (formerly ‘Training and Further Education’) Description of Output The primary Strategic objective of this output is the provision of training programs and support for students in TAFE institutes and other registered training organisations in accordance with Government priorities and in response to industry and community demands. Objectives This output makes a signiﬁ cant contribution to the achievement of the following key Government outcomes: • growing and linking all of Victoria; and • more quality jobs and thriving, innovative industries across Victoria.

Changes in Outputs Effective in the 2008 ﬁ nancial year, the Premier announced a number of machinery of Government changes: • Workplace Participation which was part of the Department of Planning and Community Development (formerly known as Department of Victorian Communities) was transferred to the Department of Innovation, Industry, and Regional Development. This has been incorporated into the Skills output. • Citizens Access and Transformation which was part of the Department of Planning and Community Development (formerly known as Department of Victorian Communities) was transferred to the Department. This has been incorporated into the ICT Policy and Programs output. In addition to the above changes, there was an additional Machinery of Government change announced in April 2008. Major Projects Victoria transferred from the Department of Transport (formerly known as Department of infrastructure to the Department). However for reporting purposes the transfer doesn’t take effect until the ﬁ nancial year commencing 1 July 2008. As part of these machinery-of-government changes, the assets and liabilities associated with Workplace Participation (WPP), and Citizens Access and Transformation (CAT) were transferred at book value as at 2 September 2007 and 2 November 2007, respectively.

82 Note 2. Departmental (controlled) outputs (continued) Schedule A – controlled income and expenses for the year ended 30 June 2008 Investment Attraction Developing Innovative Trade Marketing Regional ICT Policy and Departmental Industries Development Victoria Development Skills (i) Programs (ii) Total

2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Income Output appropriations 36,827 74,281 191,386 202,076 10,471 9,204 67,205 54,307 50,051 62,398 979,419 460,678 78,606 16,773 1,413,965 879,717 Regional Infrastructure Development Fund – appropriations – – – – – – – – 91,000 92,000 – – – – 91,000 92,000 Resources received free of charge or for nominal consideration (1) – 2 – (1) – – – – – – (1,883) – – – (1,883) Other revenue 1,272 477 19,848 2,447 199 243 4,447 914 11,943 2,706 224 – 153 – 38,086 6,787 Other income 5 (30) 25 (106) 10 (7) (4) (21) (2,839) (78) 2,470 – (25) – (358) (242) Total Income 38,103 74,728 211,261 204,417 10,679 9,440 71,648 55,200 150,155 157,026 982,113 458,795 78,734 16,773 1,542,693 976,379 Department ofInnovation, andRegional Development Industry Expenses Grants and other payments (20,168) (60,996) (130,685) (122,358) (4,026) (2,535) (64,328) (43,557) (80,547) (99,638) (766,256) (373,349) (64,655) (12,054) (1,130,665) (714,487) Employee beneﬁ ts (9,168) (8,747) (31,888) (31,442) (2,712) (2,403) (1,160) (972) (12,175) (12,316) (5,185) (7,073) (2,013) (69,361) (57,893) Depreciation and amortisation (384) (580) (1,584) (1,634) (130) (157) (322) (455) (755) (870) (652) (30) (205) (28) (4,032) (3,754) Resources provided free of charge or for nominal consideration – – (5,069) 15 – – – – – – – – – – (5,069) 15 Capital asset charge (231) (323) (2,639) (2,857) (75) (78) (193) (226) (354) (505) (167,144) (80,729) (119) (17) (170,755) (84,735) Supplies and services (7,963) (8,125) (37,794) (41,293) (3,553) (2,683) (5,834) (10,173) (9,864) (10,329) (9,220) (4,624) (6,890) (2,334) (81,118) (79,561) Finance costs (13) (9) (51) (53) (5) (5) (7) (5) (59) (57) (9) – (10) (2) (154) (131) Impairment of assets – – – – – – – – – – – – – – – – Total expenses (37,927) (78,780) (209,710) (199,622) (10,501) (7,861) (71,844) (55,388) (103,754) (123,715) (948,466) (458,732) (78,952) (16,448) (1,461,154) (940,546)

Share of net proﬁ ts/(losses) of associates and joint ventures accounted using the equity method – – – – – – – – – – – – – – – – Net Result for the Annual Report 07-08 Reporting Period 176 (4,052) 1,551 4,795 178 1,579 (196) (188) 46,401 33,311 33,647 63 (218) 325 81,539 35,833

(i) Includes Workplace Participation from 2 September 2007 to 30 June 2008. 83 (ii) Includes Citizens Access and Transformation, and Information Victoria from 2 November 2007 to 30 June 2008. 84

Note 2. Departmental (controlled) outputs (continued) Schedule B – items of controlled income and expense recognised directly in equity for the year ended 30 June 2008 Investment Attraction Developing Innovative Trade Marketing Regional ICT Policy and Departmental Industries (i) Development Victoria Development Skills (ii) Programs (iii) Total

2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Gain/(loss) on property revaluation – 524 – 1,536 – – – – – – – – – – – 2,060 – 524 – 1,536 – – – – – – – – – – – 2,060

Schedule C – controlled assets and liabilities as at 30 June 2008

Investment Attraction Developing Innovative Trade Marketing Regional ICT Policy and Departmental Industries (i) Development Victoria Development Skills (ii) Programs (iii) Total

2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Assets Current Assets 19,845 22,058 128,198 141,600 6,383 5,701 15,931 19,778 191,431 133,092 45,727 9,713 9,221 3,152 416,736 335,094 Non-Current Assets 7,245 7,966 40,695 193,136 876 903 2,109 4,076 4,338 5,940 4,309 307 2,334 127 61,906 212,455 Total Assets 27,090 30,024 168,893 334,736 7,259 6,604 18,040 23,854 195,769 139,032 50,036 10,020 11,555 3,279 478,642 547,549

Liabilities Current Liabilities (5,733) (6,223) (95,545) (92,676) (1,879) (2,006) (4,899) (8,815) (9,946) (10,898) (18,314) (9,204) (2,484) (3,476) (138,800) (133,298) Non-Current Liabilities (87) (231) (30,182) (41,147) (35) (65) (10) (299) (323) (642) (814) (477) (809) (43) (32,260) (42,904) Total Liabilities (5,820) (6,454) (125,727) (133,823) (1,914) (2,071) (4,909) (9,114) (10,269) (11,540) (19,128) (9,681) (3,293) (3,519) (171,060) (176,202)

Net Assets 21,270 23,570 43,166 200,913 5,345 4,533 13,131 14,740 185,500 127,492 30,908 339 8,262 (240) 307,582 371,347

(i) Refl ects transfer of Synchrotron asset of $157.3m from Controlled entity to Administered entity as investment. (ii) Includes Workplace Participation from 2 September 2007 to 30 June 2008. (iii) Includes Citizens Access and Transformation, and Information Victoria from 2 November 2007 to 30 June 2008. Note 3. Administered (non-controlled) items In addition to the specifi c Departmental operations which are included in the balance sheet, operating statement and cash fl ow statement, the Department administers or manages activities and resources on behalf of the State. The transactions relating to these State activities are reported as administered in this note. Administered transactions give rise to income, expenses, assets and liabilities and are determined on an accrual basis. Administered income include appropriations (payments made on behalf of the State), fees and fi nes and the proceeds from the sale of administered surplus land and buildings. Administered assets include Government incomes earned but yet to be collected. Administered liabilities include government expenses incurred but yet to be paid.

Investment Attraction Developing Innovative Trade Marketing Regional ICT Policy and Departmental Industries (i) (ii) Development Victoria Development Skills Programs Total

Administered income Sale of goods and services (3) (12) (1,170) (46) (1) (4) (3) (12) (9) (26) (8) – (860) – (2,054) (100) Interest Income – – (915) (1,248) – – – – – – – – – – (915) (1,248) Commonwealth grants – – – – – (65) – – – – – – – – – (65) Other grants – – – – – – (16,028) (5,000) – – – – – – (16,028) (5,000) Total administered income (3) (12) (2,085) (1,294) (1) (69) (16,031) (5,012) (9) (26) (8) – (860) – (18,997) (6,413)

Department ofInnovation, andRegional Development Industry Administered expenses Payments into the Consolidated Fund – 13 – 1,174 – 4 5,140 4,509 – 28 4,760 – 1,834 – 11,734 5,728 Doubtful debts – – (1,432) (326) – – – – – – – – – – (1,432) (326) Interest expense – – – – – – – – – – – – – – – – Other Expenses – – – – 14 – – – – – – – – – 14 – Total expenses – 13 (1,432) 848 14 4 5,140 4,509 – 28 4,760 – 1,834 – 10,316 5,402

Administered assets Receivables (165) (1) 15,326 13,823 (53) – 11,839 (1) (248) (1) (266) – (189) – 26,244 13,820 Loans – – 32,941 32,026 – – – – – – – – – – 32,941 32,026 Investments – – 163,011 – – – 756,224 761,534 – – – – – – 919,235 761,534 Trust funds (8) (6) (37) (35) (6) (3) (10) (7) (27) (23) – – – – (88) (74) Total administered assets (173) (7) 211,241 45,814 (59) (3) 768,053 761,526 (275) (24) (266) – (189) – 978,332 807,306

Administered Liabilities Creditors and Accruals – (1) (2) (5) – – – – (1) (3) – – 107 – 104 (9) Unearned Income (iii) – – – – – – (93,220) (93,221) – – (4,760) – – – (97,980) (93,221) Total administered liabilities – (1) (2) (5) – – (93,220) (93,221) (1) (3) (4,760) – 107 – (97,876) (93,230)

Annual Report 07-08 (i) Includes Australian Synchrotron Holding Company Ltd from 12 July 2007 to 30 June 2008. (ii) A loan to Central City Studio Holdings is secured against its assets which are valued at approximately $58.6m

85 (iii) Balance represents contribution received from the developer in relation to the MECC development project. The associated revenue will be recognised progressively over the period of the contract. Note 4. Income 2008 2007 $’000 $’000 (a) Revenue from Government Output appropriations: Output appropriations from continuing operations 1,413,965 879,717 Regional Infrastructure Development Fund appropriations 91,000 92,000 1,504,965 971,717 Resources received free of charge or for nominal consideration: Resources received free of charge or for nominal consideration from continuing operations – (1,883) – (1,883) Total revenue from Government 1,504,965 969,834

(b) Other revenue Trust revenue 11,830 5,933 Other revenue 26,256 854 Total other revenue 38,086 6,787

Note 5. Expenses 2008 2007 $’000 $’000 (a) Grants and other payments Victorian Skills Commission (741,294) (373,348) Science, Technology and Innovation Programs (67,401) (80,651) Industry Programs (122,517) (64,354) Regional Infrastructure Development Fund (51,363) (62,294) Tourism Victoria (44,983) (29,103) Drought and Bushﬁ re Assistance packages (82) (19,027) National Collaborative Research Infrastructure Scheme – (17,650) Life Sciences (20,500) (11,900) Provincial Victorian Growth Fund (14,814) (10,511) Grand Plaza Project – (10,000) Film Victoria (19,223) (7,788) Marketing and Business Events – (6,000) Living Regions Living Suburbs (3,836) (4,274) Trust Grants (7,350) (3,498) Maintain International Competitiveness – (2,500) Other Programs (1,468) (2,426) Major Event Programs (12,376) (2,364) 86 Note 5. Expenses (continued) 2008 2007 $’000 $’000 The Melbourne Convention and Visitors Bureau (375) (1,500) Connecting Victoria (6,048) (1,372) Victoria Major Events Company (650) (1,100) Jobwatch (902) (902) Workplace Rights Advocate (450) (675) Victorian Endowment for Science, Knowledge and Innovation Program (433) (433) Better Supply Chain Links – (245) Synchrotron (14,600) (214) Confucius Institute – (200) Better Work and Family Balance – (158) Total grants and other payments (1,130,665) (714,487)

(b) Employee benefi ts Termination benefi ts – – Salaries and wages (69,361) (57,893) Total employee benefi ts (69,361) (57,893)

(c) Depreciation and amortisation Depreciation of non-current assets (1,698) (1,486) Amortisation of non-current assets (2,334) (2,268) Total depreciation and amortisation (4,032) (3,754)

(d) Supplies and services Consultants and professional services (41,530) (42,143) Accommodation expenses (11,974) (9,769) Marketing and media expenses (7,954) (7,864) Services provided by other Government Departments 137 (4,166) Computer services and equipment (6,322) (3,543) Travel and related expenses (3,666) (2,926) Postage and communications (2,654) (2,072) Stationery and ofﬁ ce requisites (1,347) (1,738) Educational expenses (1,682) (1,529) Meeting expenses (1,099) (1,037) Books and publications (1,037) (754) Motor vehicle expenses (474) (650) Audit costs (Internal & External) (601) (499) Other expenses (915) (871) Total supplies and services (81,118) (79,561)

(e) Finance costs Finance lease costs (154) (131) Total ﬁ nance costs (154) (131)

87 Department of Innovation, Industry and Regional Development Annual Report 07-08 Note 6. Restructuring of administrative arrangements On 2 September 2007, and 2 November 2007, the Government issued an administrative order to restructure certain of its activities via machinery-of-government changes. The Department assumed the activities of the following: • Training and Further Education Output relating to Workplace Participation transferred from the Department of Planning and Community Development (formerly known as the Department of Victorian Communities). The Department of Planning and Community Development has recognised expenses and income amounting to $2.5m and $2.4m respectively during the year ended 30 June 2008 in respect of this output. The total income and expenses recognised by the Department of Planning and Community Development and the Department of Innovation, Industry and Regional Development in respect of this output for the year ended 30 June 2008 are $31.4m and $28.7m respectively. The net assets transfer was treated as a contribution of capital by the Crown in compliance with the accounting requirements of AASB Interpretation 1038: Contributions by Owners Made to Wholly-Owned Public Sector Entities, and Financial Reporting Direction 2A: Contributions by Owners (refer Note 1(j)). No income has been recognised by the Department in respect of the net assets transferred from the Department of Planning and Community Development. • Information and Communication Technologies Policies and Programs Output relating to Citizens Access and Transformation transferred from the Department of Planning and Community Development (formerly known as the Department of Victorian Communities). The Department of Planning and Community Development has recognised expenses and income amounting to $2.5m and $2.5m respectively during the year ended 30 June 2008 in respect of this output. The total income and expenses recognised by the Department of Planning and Community Development and the Department of Innovation, Industry and Regional Development in respect of this output for the year ended 30 June 2008 are $4.0m and $4.0m respectively. The net assets transfer was treated as a contribution of capital by the Crown in compliance with the accounting requirements of AASB Interpretation 1038: Contributions by Owners Made to Wholly-Owned Public Sector Entities, and Financial Reporting Direction 2A: Contributions by Owners (refer Note 1(j)). No income has been recognised by the Department in respect of the net assets transferred from the Department of Planning and Community Development. • Information and Communication Technologies Policies and Programs Output relating to Information Victoria transferred from the Department of Planning and Community Development (formerly known as the Department of Victorian Communities). The Department of Planning and Community Development has recognised expenses and income amounting to $3.3m and $3.4m during the year ended 30 June 2008 in respect of this output. The total income and expenses recognised by the Department of Planning and Community Development and the Department of Innovation, Industry and Regional Development in respect of this output for the year ended 30 June 2008 are $9.3m and $9.5m respectively. The net assets transfer was treated as a contribution of capital by the Crown in compliance with the accounting requirements of AASB Interpretation: 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities, and Financial Reporting Direction 2A: Contributions by Owners (refer Note 1(j)). No income has been recognised by the Department in respect of the net assets transferred from the Department of Planning and Community Development. Net assets assumed by the Department as a result of the assumption of these outputs are recognised in the balance sheet immediately at the carrying amount of those assets in the transferors’ (Department of Planning and Community Development) balance sheet immediately prior to the transfer.

88 Note 6. Restructuring of administrative arrangements (continued) In respect of the activities assumed, the following assets and liabilities were recognised at the date of transfer: 2008 2007 $’000 $’000 Output: ICT Policy and Programs Assets Stock 253 – Receivables 1,631 – Property, plant and equipment 939 – Intangible Asset 265 – Liabilities Interest bearing liabilities (48) – Provisions (1,003) – Net assets recognised at the date of transfer 2,037 – Net capital contribution from the Crown 2,037 –

Output: Training and Further Education Assets Receivables 75 – Property, plant and equipment 3,038 – Liabilities Interest bearing liabilities (28) – Provisions (691) – Net assets recognised at the date of transfer 2,394 – Net capital contribution from the Crown 2,394 –

Note 7. Receivables 2008 2007 $’000 $’000 Current receivables Amounts owing from Victorian Government (i) 67,396 53,664 Other receivables (ii) 30,328 15,323 Provision for doubtful debts (ii) – – 97,724 68,987 GST input tax credit receivable 15,521 5,606 Total current receivables 113,245 74,593 Non-current receivables Amounts owing from Victorian Government (i) 1,436 1,436 Total non-current receivables 1,436 1,436 (i) The amounts recognised from Victorian Government represent funding for all commitments incurred through the appropriations and are drawn from the Consolidated Fund as the commitments fall due. (ii) The average credit period for the provision of goods and services is 30 days. No interest is charged on other receivables. No allowance for doubtful debts has been recognised as all amounts have been determined recoverable amounts by reference to past default experience. (a) Ageing analysis of receivables Please refer to table 20.1 in Note 20 for the ageing analysis of receivables. (b) Nature and extent of risk arising from receivables Please refer to Note 20 for the nature and extent of risks arising from receivables.

89 Department of Innovation, Industry and Regional Development Annual Report 07-08 Note 8. Other assets 2008 2007 $’000 $’000 Current Prepayments 1,018 743 Consumables 197 – Total current other assets 1,215 743 Note 9. Property, plant and equipment Classiﬁ cation by ‘Purpose Group’ (i) – carrying amounts Public Safety Public Admin Total and Environment 2008 2007 2008 2007 2008 2007 $’000 $’000 $’000 $’000 $’000 $’000 Land Crown land – fair value (2007 valuation) – – 10,115 10,115 10,115 10,115 – – 10,115 10,115 10,115 10,115 Buildings Building leasehold – at fair value (2007 valuation) – – 4,248 4,248 4,248 4,248 Less: Accumulated amortisation – – (42) – (42) – – – 4,206 4,248 4,206 4,248 Leasehold improvements – at cost 59 59 24,694 24,499 24,753 24,558 Less: Accumulated amortisation (33) (25) (4,609) (2,895) (4,642) (2,920) 26 34 20,085 21,604 20,111 21,638 Total land and buildings 26 34 34,406 35,967 34,432 36,001 Plant and equipment At cost 62 55 11,895 11,599 11,957 11,654 Less: Accumulated depreciation (52) (46) (9,016) (8,487) (9,068) (8,533) 10 9 2,879 3,112 2,889 3,121 Plant and equipment under ﬁ nance lease – at cost – – 2,788 2,992 2,788 2,992 Less: Accumulated depreciation – – (736) (640) (736) (640) – – 2,052 2,352 2,052 2,352 Total plant and equipment 10 9 4,931 5,464 4,941 5,473 Property, plant and equipment in the course of construction – at cost (ii) – – 832 154,545 832 154,545 Total property, plant and equipment 36 43 40,169 195,976 40,205 196,019

(i) Property, plant and equipment are classifi ed primarily by the ‘purpose’ for which the assets are used, according to one of six ‘Purpose Groups’ based upon Government Purpose Classifi cations (GPC). All assets within a ‘Purpose Group’ are further sub- categorised according to the asset’s ‘nature’ (i.e. buildings, plant and equipment, etc), with each sub-category being classifi ed as a separate class of asset for fi nancial reporting purposes. (ii) For the year ended 30 June 2008, expenditure incurred on property, plant and equipment in the course of construction includes $2.8m on the Australian Synchrotron Project (2007 – $12.4m). The carrying value of the Synchrotron asset has been transferred to the Australian Synchrotron Holding Company which was established on 13 July 2007. This represents the States contribution to the project, and is refl ected through a shareholding in the Administered Entity. (iii) Building Leasehold is for a term of 150 years from the year 1990. 90 Note 9. Property, plant and equipment (continued) Classifi cation by ‘Public Safety and Environment’ Purpose Group – Movements in carrying amounts Buildings Leasehold Improvements Plant and Equipment Total 2008 2007 2008 2007 2008 2007 $’000 $’000 $’000 $’000 $’000 $’000 Opening balance 34 41 9 14 43 55 Additions – – 7 3 7 3 Disposals – – – – – – Acquisitions through administrative restructures – – – – – – Transfers to classifi ed as held for sale – – – – – – Net revaluation increments/decrements – – – – – – Depreciation/amortisation expense (8) (7) (6) (8) (14) (15) Impairment loss – – – – – – Received/given free of charge – – – – – – Transfers between classes – – – – – – Closing balance 26 34 10 9 36 43

91 Department of Innovation, Industry and Regional Development Annual Report 07-08 92

Note 9. Property, plant and equipment (continued)

Classiﬁ cation by ‘Public Admin’ Purpose Group – Movements in carrying amounts Crown Land at Leasehold Buildings Plant and Leased Plant In Course of Fair Value Improvements Leasehold Equipment and Equipment Construction Total

2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Opening balance 10,115 8,580 21,604 1,390 4,248 3,762 3,112 2,769 2,352 1,820 154,545 161,180 195,976 179,501 Additions – – 196 2,889 – – 1,511 1,801 1,024 954 2,755 12,455 5,486 18,099 Disposals – – – (115) – – (168) (92) (651) (335) – – (819) (542) Acquisitions through administrative restructures – – – 105 – – 116 112 74 356 832 – 1,022 573 Transfers to classiﬁ ed as held for sale – – – – – – – – (178) (57) – – (178) (57) Net revaluation increments/decrements – 1,535 – – – 525 – – – – – – – 2,060 Depreciation/amortisation expense – – (1,715) (1,755) (42) (39) (1,692) (1,478) (569) (467) – – (4,018) (3,739) Transfer to Administered – – – – – – – – – – (157,300) – (157,300) – Received/given free of charge – – – – – – – – – 81 – – – 81 Transfers between classes – – – 19,090 – – – – – – – (19,090) – – Closing balance 10,115 10,115 20,085 21,604 4,206 4,248 2,879 3,112 2,052 2,352 832 154,545 40,169 195,976 Note 9. Property, plant and equipment (continued)

The following useful lives of assets are used in the calculation of depreciation and amortisation: 2008 2007 Years Years Buildings leasehold 150 150 Leasehold improvements 8 to 15 8 to 15 Plant and equipment 5 to 10 5 to 10 Leased plant and equipment 1 to 3 1 to 3

Aggregate depreciation and amortisation allocated, recognised as an expense during the year: 2008 2007 $’000 $’000 Buildings leasehold 42 39 Leasehold improvements 1,723 1,762 Plant and equipment 1,698 1,486 Leased plant and equipment 569 467 4,032 3,754

Note 10. Non-current assets classifi ed as held for sale and liabilities directly associated with assets classifi ed as held for sale 2008 2007 $’000 $’000 Non-current assets Leased Plant and Equipment held for sale (i) 177 57 Total non-current assets classifi ed as held for sale 177 57 Liabilities Finance lease liabilities 178 58 Total liabilities associated with assets classifi ed as held for sale 178 58 (i) The Department holds a number of leased motor vehicles which it intends to sell in the next 12 months.

Note 11. Investments accounted for using the equity method 2008 2007 $’000 $’000 Investments in jointly controlled entities 20,000 15,000 20,000 15,000 Name of entity (Joint Venture) Principal Activity Country of Ownership Interest % (i) Incorporation 2008 2007 Australian Regenerative Medicine To construct and operate a regenerative Unincorporated Institute (ARMI). medical research facility. (Australia). 20 45

(i) Under the terms of the Joint Venture arrangement, the ownership interests of the respective joint venture partners may vary over the 5 year construction phase of the project, after which the interest of the Department will remain at 20% for the duration of the agreement. The fair value of the ownership interest held by the Department is equal to the value of cash invested in the Joint Venture which amounts to $20m at 30 June 2008.

93 Department of Innovation, Industry and Regional Development Annual Report 07-08 Note 11. Investments accounted for using the equity method (continued)

Summarised ﬁ nancial information of jointly controlled entities At balance date, the Department’s share of net assets and the net result after tax of its jointly controlled entities is as follows: 2008 2007 $’000 $’000 Current assets 20,252 15,000 Non-current assets 79,017 18,145 Total assets 99,269 33,145 Current liabilities – – Non-current liabilities – – Total liabilities – – Net assets 99,269 33,145 Share of jointly controlled entity’s net assets 20,000 15,000 Total income – – Net result – – Share of jointly controlled entity’s result after tax – –

Dividends received from joint ventures The Department received no dividends during the 2008 year, or in the prior 2007 ﬁ nancial year from its jointly controlled entities.

Contingent liabilities and capital commitments The Department’s share of the contingent liabilities, capital commitments and other expenditure commitments of its jointly controlled entities are disclosed in Notes 19 and 18 respectively. The Department is joint and severally liable for all the liabilities of ARMI.

Note 12. Intangible assets 2008 2007 $’000 $’000 Gross carrying amount Opening balance – – Additions – – Transfers received free of charge 265 – Additions from internal development – – Impairment losses charged to net result – – Closing balance 265 –

94 Note 13. Payables 2008 2007 $’000 $’000 Current Amounts payable to other government agencies (i) 74,827 62,652 Other payables (ii) 31,093 41,086 Total current payables 105,920 103,738 (i) Terms and conditions of amounts payable to other government agencies vary according to a particular agreement with that agency. (ii) The average credit period is 30 days. No interest is charged on late payments. (a) Maturity analysis of payables Please refer to table 20.2 in Note 20 for the ageing analysis of payables. (b) Nature and extent of risk arising from payables Please refer to Note 20 for the nature and extent of risks arising from payables.

Note 14. Interest bearing liabilities 2008 2007 $’000 $’000 Current Secured: Finance lease liabilities (i) (Note 17) 1,252 1,171 Total current interest-bearing liabilities 1,252 1,171 Non-current Secured: Finance lease liabilities (i) (Note 17) 955 1,199 Total non-current interest-bearing liabilities 955 1,199 Total interest-bearing liabilities 2,207 2,370 (i) Secured by the assets leased. (a) Maturity analysis of interest bearing liabilities Please refer to table 20.2 in Note 20 for the ageing analysis of interest bearing liabilities. (b) Nature and extent of risk arising from interest bearing liabilities Please refer to table 20.3 in Note 20 for the nature and extent of risks arising from interest bearing liabilities. (c) Defaults and breaches During the current and prior year, there were no defaults and breaches of any of the loans.

95 Department of Innovation, Industry and Regional Development Annual Report 07-08 Note 15. Provisions 2008 2007 $’000 $’000 Current Employee benefi ts (Note (15a)) (iii) Unconditional and expected to be settled within 12 months (i) 5,898 4,836 Unconditional and expected to be settled after 12 months (ii) 12,649 11,019 Provisions related to employee benefi t on-costs Unconditional and expected to be settled within 12 months (i) 866 778 Unconditional and expected to be settled after 12 months (ii) 2,037 1,698 Total current provisions 21,450 18,331 Non-current Employee benefi ts (Note (15a)) 1,124 1,469 Provisions related to employee benefi t on-costs 181 236 Total non-current provisions 1,305 1,705

(a) Employee benefi ts and related on-costs Current employee benefi ts Annual leave entitlements 4,654 4,280 Unconditional long service leave entitlements 13,374 11,103 Other entitlements 519 472 Non-current employee benefi ts Conditional long service leave entitlements 1,124 1,469 Total employee benefi ts 19,671 17,324 Current on-costs 2,903 2,476 Non-current on-costs 181 236 Total on-costs 3,084 2,712 Total employee benefi ts and related on-costs 22,755 20,036

(i) The amounts disclosed are nominal amounts. (ii) The amounts disclosed are discounted to present values. (iii) Provisions for employee beneﬁ ts consist of amounts for annual leave and long service leave accrued by employees, not including on-costs.

96 Note 16. Superannuation Employees of the Department are entitled to receive superannuation benefi ts and the Department contributes to both defi ned benefi t and defi ned contribution plans. The defi ned benefi t plan(s) provides benefi ts based on years of service and fi nal average salary. The Department does not recognise any defi ned benefi t liability in respect of the plan(s) because the entity has no legal or constructive obligation to pay future benefi ts relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department of Treasury and Finance recognises and discloses the State’s defi ned benefi t liabilities in its fi nancial report. However, superannuation contributions for the reporting period are included as part of the employee benefi ts in the operating statement of the Department. The name and details of the major employee superannuation funds and contributions made by the Department are as follows: Fund Contribution for the year Contribution outstanding at year end 2008 2007 2008 2007 $’000 $’000 $’000 $’000 Government Superannuation Scheme – revised and new 1,726 1,368 – – State Government Superannuation Fund 4,050 2,724 – – Private Funds 507 352 – – Various other 377 351 – – Total 6,660 4,795 – –

(a) The bases for contributions are determined by the various schemes. (b) 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.

Note 17. Leases Finance leases Leasing arrangements Finance leases relate to motor vehicles with lease terms of between 1 and 3 years. The Department has the option to purchase the vehicles for a nominal amount at the conclusion of the lease agreements. Finance lease liabilities Minimum future lease Present value of minimum payments future lease payments 2008 2007 2008 2007 $’000 $’000 $’000 $’00 Not longer than 1 year 1,354 1,295 1,252 1,171 Longer than 1 year and not longer than 5 years 1,005 1,262 955 1,199 Longer than 5 years – – – – Minimum lease payments (i) 2,359 2,557 2,207 2,370 Less future ﬁ nance charges (152) (187) – – Present value of minimum lease payments 2,207 2,370 2,207 2,370 Included in the ﬁ nancial statements as: Current interest bearing liabilities (Note 14) 1,252 1,171 Non-current interest bearing liabilities (Note 14) 955 1,199 2,207 2,370

(i) Minimum future lease payments includes the aggregate of all lease payments and any guaranteed residual.

97 Department of Innovation, Industry and Regional Development Annual Report 07-08 Note 17. Leases (continued) Operating leases Leasing arrangements Operating leases mainly relate to accommodation with lease terms of between 2 and 15 years. All operating lease contracts contain market review clauses in the event that the Department exercises its option to renew. The Department does not have an option to purchase the leased asset at the expiry of the lease period. 2008 2007 $’000 $’000 Non-cancellable operating leases Not longer than 1 year 12,467 10,014 Longer than 1 year and not longer than 5 years 48,516 50,147 Longer than 5 years 92,724 96,294 153,707 156,455

Note 18. Commitments for expenditure 2008 2007 $’000 $’000 (a) Capital expenditure commitments Buildings Not longer than 1 year 13 5,696 Longer than 1 year and not longer than 5 years – 5,725 Longer than 5 years – – 13 11,421 Department’s share of jointly controlled entity’s capital expenditure commitments: Not longer than 1 year 10,000 10,000 Longer than 1 year and not longer than 5 years 5,000 10,000 Longer than 5 years – – 15,000 20,000 (b) Lease commitments Finance lease liabilities and non-cancellable operating lease commitments are disclosed in Note 17 to the ﬁ nancial statements. (c) Other expenditure commitments Outsourcing commitments Commitments under outsourcing contracts for Information Technology and internal audit services at the reporting date but not recognised as liabilities and payables are: Not longer than 1 year 700 4,585 Longer than 1 year and not longer than 5 years – 735 Longer than 5 years – – 700 5,320 Grant commitments Commitments for the payment of grants under long-term contracts in existence at the reporting date but not recognised as liabilities and payable are: Not longer than 1 year 154,898 152,928 Long than 1 year and not longer than 5 years 124,867 191,203 Longer than 5 years 1,400 4,000 281,165 348,131

98 Note 18. Commitments for expenditure (continued)

Melbourne Exhibition and Convention Centre Development Project In May 2006, the State of Victoria entered into an agreement under its Partnerships Victoria policy for the development and maintenance of the Melbourne Exhibition and Convention Centre (MECC) facility by a private sector consortium. The private sector consortium is responsible for construction of the new facility, which commenced in June 2006 and is scheduled for completion in December 2008. Upon its completion, the Department will be granted a 25 year lease by the lessor and the new facility will be operated by the Melbourne Exhibition and Convention Centre Trust. It is estimated as at 30 June 2008 that future lease payments relating to the new facility amount to $468m in net present value terms (including GST), or $1.2b (including GST) in nominal dollars, to be paid to the private consortium over a 25 year period commencing 1 January 2009. The private sector consortium will provide services, maintenance and refurbishments in return for a ﬁ xed quarterly service payment from the State. These future service payments are proposed to be funded from dividends received from the Melbourne Convention and Exhibition Centre Trust over the 25 year lease period commencing on 1 January 2009. It is estimated that as at 30 June 2008, these future service payments amount to $188m in net present value terms (including GST), or $484m (including GST) in nominal dollars, over the 25 year lease term.

Lease commitments outstanding in relation to the MECC development project for construction of the new facility are as follows: Indexed nominal value Net present value (i) 2008 2007 2008 2007 $’000 $’000 $’000 $’000 Not longer than 1 year 20,805 – 19,490 – Longer than 1 year and not longer than 5 years 151,134 117,587 114,294 56,934 Longer than 5 years 1,029,743 1,084,095 334,185 312,985 Total value of expected future commitments 1,201,682 1,201,682 467,969 369,919

(i) The net present value is calculated using a discount rate of 8.14% per annum and an inﬂ ation rate of 2.5% per annum.

Operating commitments outstanding in relation to the MECC development project for services, maintenance and refurbishments are as follows: Indexed nominal value Net present value (i) 2008 2007 2008 2007 $’000 $’000 $’000 $’000 Not longer than 1 year 8,377 – 7,847 – Longer than 1 year and not longer than 5 years 60,850 47,352 46,018 22,928 Longer than 5 years 414,693 436,568 134,551 126,040 Total value of expected future commitments 483,920 483,920 188,416 148,968

(i) The net present value is calculated using a discount rate of 8.14% per annum and an inﬂ ation rate of 2.5% per annum.

99 Department of Innovation, Industry and Regional Development Annual Report 07-08 Note 19. Contingent assets and contingent liabilities Note 2008 2007 $’000 $’000 Contingent asset Loan for bridge construction – MECC Development Project (i) 14,000 14,000 14,000 14,000 Contingent liabilities Underground water contamination - TV and Film Studio (ii) 2,000 2,000 Debt facility (iii) 8,870 11,000 Payment for bridge construction - MECC Development Project 14,000 14,000 Share of associate’s/jointly controlled entity’s contingent liabilities 24,870 27,000 (i) The State has entered unto a contract for the construction of a bridge across the Yarra river which will link the North bank of the Yarra river to the MECC. In the event that the MECC Development Project is completed earlier than the scheduled completion date, the State has agreed to pay up to $14m to the project company responsible for undertaking the works. Under the terms of the agreements, the payment will then be owed to the State by the City of Melbourne, which is liable for the payment for the bridge works if completed on or after the scheduled completion date. (ii) In relation to the Film and TV Studio land, the State accepts responsibility during the term of the agreement (20 years) for groundwater contamination, if required by law, unless made necessary by redevelopment, or change of use by the studio developer, Central City Studio Holdings (CCSH). The known State liability is $0.6m subject to reaching agreement with the Environment Protection Authority. In addition, the total estimated cost of monitoring groundwater contamination over the period of the agreement may amount to $1.4m. (iii) Supplementary project agreements reached between the State and CCSH in November 2004 permit CCSH to borrow $6m from an external lender for further development of the studio complex, and to consolidate an existing $5m facility (total $11m external debt). The agreements include a Tripartite Agreement between CCSH, an external lender, and the State in relation to the $8.9m debt facility (2007 – $11m). The State will have the option to either pay out, or take over, the facility in the extreme event of default by CCSH.

Unquantiﬁ able Contingent liabilities In relation to the Film and TV Studio land, the State accepts liability for costs in excess of $1.0m relating to pre-existing contamination (including the costs of initial remediation). None of the above contingent liabilities are secured over any of the assets of the Department.

Note 20. Financial instruments (a) Financial risk management objectives The Department’s activities expose it primarily to the fi nancial risks of changes in foreign currency exchange rates, and interest rates. The Department does not enter into derivative fi nancial instruments to manage its exposure to interest rate and foreign currency risk. The Department does not enter into or trade fi nancial instruments, including derivative fi nancial instruments, for speculative purposes. The policies for managing these risks are discussed in more detail below. (b) Signifi cant accounting policies Details of the signifi cant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of fi nancial asset, fi nancial liability and equity instrument are disclosed in Note 1 of the Financial Statements.

100 Note 20. Financial instruments (continued) (c) Categorisation of fi nancial instruments Financial assets Note Category Carrying Carrying Amount Amount 2008 2007 Cash and cash equivalents N/A 302,099 259,701 Receivables (i) 7 Loans and receivables (at amortised cost) 30,328 15,323 Other fi nancial assets Available for sale fi nancial assets – – Financial liabilities Payables 13 Financial liabilities measured at amortised cost 31,095 41,086 Interest bearing liabilities 14 Financial liabilities measured at amortised cost 2,207 2,370

(i) Receivables and payables disclosed above exclude Statutory Receivables (i.e. Amounts receivable from Government Departments and GST recoverable) and Statutory Payables (i.e. Amounts payable to other Government). (d) Credit risk Credit risk associated with the Department’s fi nancial assets is minimal because the main debtor is the Victorian Government. For debtors other than government, it is the Department’s policy to only deal with entities with high credit ratings and to obtain suffi cient collateral or credit enhancements where appropriate. The Department does not have any signifi cant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. The carrying amount of fi nancial assets recorded in the Financial Statements, net of any allowances for losses, represents the Department’s maximum exposure to credit risk without taking account of the value of any collateral obtained. Financial assets that are either past due or impaired Currently the Department does not hold any collateral as security nor credit enhancements relating to any of its fi nancial assets. As at the reporting date, there was no event to indicate that any of the fi nancial assets were impaired. There were no fi nancial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they are stated at the carrying amounts as indicated. Table 20.1 discloses the ageing only of fi nancial assets that are past due but not impaired. (e) Liquidity risk Liquidity risk arises when the Department is unable to meet its fi nancial obligations as they fall due. The Department operates under the Government’s fair payments policy of settling fi nancial obligations within 30 days and in the event of a dispute, making payments within 30 days from the date of resolution. The Department’s exposure to liquidity risk is deemed insignifi cant based on prior periods’ data and current assessment of risk. Maximum exposure to liquidity risk is the carrying amounts of fi nancial liabilities. (f) Market risk The Department’s exposure to market risk is primarily through interest rate risk with only insignifi cant exposure to foreign currency and other price risks. Objectives, policies and processes used to manage each of these risks are disclosed in the following paragraphs: Foreign currency risk The Department is exposed to insignifi cant foreign currency risk through its payables relating to purchases of supplies and consumables from overseas. This is because of a limited amount of purchases denominated in foreign currencies and a short timeframe between committment and settlement. The Department manages its risk through continuous monitoring of movements in exchange rates against the US dollars and ensures availability of funds through rigorous cash fl ow planning and monitoring. Based on past and current assessment of economic outlook, it is deemed unnecessary for the Department to enter into any hedging arrangements to manage risk. The Department’s exposure to foreign currency risk is set out in Table 20.3. Interest rate risk Exposure to interest rate risk is insignifi cant and might arise primarily through the Department’s interest bearing liabilities. The only interest bearing liabilities are the motor vehicle lease liabilities and term deposits. The Department’s interest bearing liabilities are managed by Treasury Corporation Victoria, and any movement in interest rates are monitored on a daily basis. The Department’s exposure to interest rate risk is set out in Table 20.2. Sensitivity analysis disclosure Taking into account past performance, future expectations, economic forecasts, and management’s knowledge and experience of the fi nancial markets, the Department believes the following movements are reasonably possible over the next 12 months (Base rates are sourced from Treasury Corporation Victoria): – A shift of +5% per cent and -5% per cent in market interest rates (AUD) from year-end rates – Exchange rate movement of -10% per cent (depreciation of AUD) and +10% per cent (appreciation of AUD) against foreign currency Table 20.3 discloses the impact on net operating result and equity for each category of fi nancial instrument held by the Department at year-end as presented to key management personnel, if the above movements were to occur. 101 Department of Innovation, Industry and Regional Development Annual Report 07-08 102

Note 20. Financial instruments (continued)

Table 20.1 Interest rate exposure and ageing analysis of ﬁ nancial assets Weighted Interest rate exposure Not Past due but not impaired average Fixed Variable Non- past due Impaired effective Interest Interest Interest and not Less than 1 - 3 3 - 12 1 - 5 Over 5 ﬁ nancial interest rate rate bearing impaired 1 month Months Months Years Years Assets Total % $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 2008 Financial assets Cash and cash equivalents – – 52,651 52,651 – – – – – – 52,651 Cash and cash equivalents 7.82 249,448 – – 249,448 – – – – – – 249,448 Trade and other receivables – – 30,328 29,539 34 713 30 12 – 30,328 249,448 – 82,979 331,638 34 713 30 12 – – 332,427 2007 Financial assets Cash and cash equivalents – – 209,701 209,701 – – – – – – 209,701 Cash and cash equivalents 6.27 50,000 – – 50,000 – – – – – – 50,000 Trade and other receivables – – 15,323 15,075 173 33 42 – – – 15,323 50,000 – 225,024 274,776 173 33 42 – – – 275,024

Table 20.2 Interest rate exposure and maturity analysis of ﬁ nancial liabilities Weighted Interest rate exposure Maturity Dates (a) average Fixed Variable Non- effective Interest Interest Interest Carrying Less than 1 - 3 3 - 12 1 - 5 Over 5 Total interest rate rate bearing Amount 1 month Months Months Years Years Nominal % $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 2008 Financial liabilities Payables – – 31,095 31,095 31,095 – – – – 31,095 Finance Lease Liabilities 7.06 2,207 – – 2,207 417 234 720 978 2,349 2,207 – 31,095 33,302 31,512 234 720 978 – 33,444 2007 Financial liabilities Payables – – 41,086 41,086 41,086 – – – – 41,086 Finance Lease Liabilities 6.78 2,370 – – 2,370 292 178 843 1,105 – 2,418 2,370 – 41,086 43,456 41,378 178 843 1,105 – 43,504

(a) The amounts disclosed are the contractual undiscounted cash ﬂ ows of each class of ﬁ nancial liabilities Note 20. Financial instruments (continued)

Table 20.3 Market risk exposure Foreign Exchange Risk Interest rate risk -10% +10% -5% +5% Carrying Net Net Net Net amount result Equity Result Equity Result Equity Result Equity 2008 Financial assets Cash and cash equivalents 302,099 (90) (90) 55 55 (975) (975) 975 975 Receivables 30,328 – – – – – – – – Other ﬁ nancial assets – – – – – – – – – Financial liabilities Payables 31,095 – – – – – – – – Interest bearing liabilities 2,207 – – – – – – – – Total Increase/(Decrease) (90) (90) 55 55 (975) (975) 975 975

2007 Financial assets Cash and cash equivalents 259,701 (25) (25) 31 31 (155) (155) 155 155 Receivables 15,323 – – – – – – – – Other ﬁ nancial assets – – – – – – – – – Financial liabilities Payables 41,086 – – – – – – – – Interest bearing liabilities 2,370 – – – – – – – – Total Increase/(Decrease) (25) (25) 31 31 (155) (155) 155 155

(g) Fair value The fair values and net fair values of fi nancial assets and fi nancial liabilities are determined as follows: • the fair value of fi nancial assets and fi nancial liabilities with standard terms and conditions and traded on active liquid markets is determined with reference to quoted market prices; and • the fair value of other fi nancial assets and fi nancial liabilities are determined in accordance with generally accepted pricing models based on discounted cash fl ow analysis. None of the classes of fi nancial assets and liabilities are readily traded on organised markets in standardised form. The Department considers that the carrying amount of fi nancial assets and fi nancial liabilities recorded in the fi nancial report to be a fair approximation of their fair values, because of the short-term nature of the fi nancial instruments and the expectation that they will be paid in full.

103 Department of Innovation, Industry and Regional Development Annual Report 07-08 Note 21. Cash ﬂ ow information (a) Reconciliation of cash and cash equivalents For the purpose of the Cash Flow Statement, cash includes cash on hand and in bank, net of outstanding bank overdrafts. Cash at the end of the ﬁ nancial year as shown in the Cash Flow Statement is reconciled to the related items in the balance sheet as follows: 2008 2007 $’000 $’000 Cash disclosed in the balance sheet (i) 480 (44) Invested Funds held in Trust (Note 26 (b)) (ii) 249,448 50,000 Funds held in trust (Note 26(b)) 52,171 209,745 302,099 259,701 (i) Due to the State of Victoria’s investment policy and government funding arrangements, government departments generally do not hold a large cash reserve in their bank accounts. Cash received by a department from the generation of revenue is generally paid into the State’s bank account, known as the Public Account. Similarly, any departmental expenditure, including those in the form of cheques drawn by the Department for the payment of goods and services to its suppliers and creditors are made via the Public Account. The process is such that, the Public Account would remit to the Department the cash required for the amount drawn on the cheques. This remittance by the Public Account occurs upon the presentation of the cheques by the Department’s suppliers or creditors. The above funding arrangements often result in departments having a notional shortfall in the cash at bank required for payment of unpresented cheques at the reporting date. At 30 June 2008, cash at bank includes the amount of a notional shortfall for the payment of unpresented cheques of $279,863 (2007– $334,065). (ii) Represents Deposits with Treasury Corporation of Victoria.

(b) Non cash fi nancing and investing activities 2008 2007 $’000 $’000 Restructuring of administrative arrangements (i) 4,431 3,064 Acquisition of plant and equipment by way of fi nance lease 1,024 954 5,455 4,018 (i) During the reporting period, the Department restructured administrative arrangements. This restructure resulted in the Department assuming net assets of $4.4m (2007 – $3.1m). Details with respect to the restructuring of administrative arrangements are set out in Note 5. This restructuring is not refl ected in the Cash Flow Statement.

(c) Reconciliation of net result for the period to net cash fl ows from operating activities 2008 2007 $’000 $’000 Net result for the reporting period 81,539 35,833 Non-cash movements: (Gain)/loss on sale or disposal of non-current assets 255 180 Depreciation and amortisation 4,032 3,754 Provision for doubtful debts – – Impairment of non-current assets – – Resources provided free of charge or for nominal consideration (400) 1,868 Other non-cash items – (4) Movements in assets and liabilities: (Increase)/decrease in current receivables (38,652) (30,475) (Increase)/decrease in other current assets (275) (567) (Increase)/decrease in non current receivables – (71) Increase/(decrease) in current payables 2,242 73,091 Increase/(decrease) in current provisions 3,119 3,597 Increase/(decrease) in non current liabilities (10,000) – Increase/(decrease) in non current provisions (400) 84 Net cash fl ows from/(used in) operating activities 41,460 87,290 104 Note 22. Movements in equity 2008 2007 $’000 $’000 (a) Reserves Asset revaluations 6,142 6,142 6,142 6,142 Asset revaluation reserve (i) Balance at beginning of fi nancial year 6,142 4,082 Revaluation increment/(decrements) – 2,060 Share of increments in reserve attributable to jointly controlled entities – – Balance at end of fi nancial year 6,142 6,142

(b) Contributions by Owners Balance at beginning of the ﬁ nancial year 215,456 198,980 Capital transactions with the State in its capacity as owner arising from: Appropriations 7,964 13,439 Withdrawal of equity (ii) (157,698) (27) Net capital contributions upon restructure (Note 6) 4,430 3,064 (145,304) 16,476 Balance at end of ﬁ nancial year 70,152 215,456

(c) Accumulated surplus Balance at beginning of the ﬁ nancial year 149,749 113,916 Net result 81,539 35,833 Balance at end of ﬁ nancial year 231,288 149,749

(i) The asset revaluation reserve arises on the revaluation of land and buildings. (ii) Equity is withdrawn on transfer of the carrying value of assets sold where the sale proceeds are required to be paid into the Consolidated Fund.

105 Department of Innovation, Industry and Regional Development Annual Report 07-08 106

Note 23. 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. Appropriation Act Financial Management Act 1994 Administrative Arrangements Act 1983 Annual Advance from Section 3(2) Section 29 Section 30 Section 32 Section 35 Administrative Total Appropriations Variance Appropriation Treasurer Arrangements Parliamentary Applied Order Authority 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Controlled Provision of outputs 1,312,587 331,138 65,061 78,207 – – – 65 – 1,640 34,269 7,970 – 16,666 25,311 482,665 1,437,228 918,351 1,413,964 879,717 23,264 38,634(i) Additions to net assets 2,913 14,563 – – – – – – – (1,640) 7,964 7,180 – – – 1,300 10,877 21,403 7,964 13,439 2,913 7,964(ii) Regional Infrastructure – – – – – – – – – – – – – – – – – – – – – – Development Fund 91,000 92,000 – – – – – – – – – – – – – – 91,000 92,000 91,000 92,000 – – Administered Payments made on behalf of the State – – – – – – – – – – – – – – – – – – – – – – Total 1,406,500 437,701 65,061 78,207 – – – 65 – – 42,233 15,150 – 16,666 25,311 483,965 1,539,105 1,031,754 1,512,928 985,156 26,177 46,598

(i) The variance is primarily related to changes in expected cash fl ows for committed projects to be delivered in the next fi nancial year. (ii) The variance relates to delay in a committed project and payment is expected to be made in the next fi nancial year. Note 24. Ex-gratia payments 2008 2007 $’000 $’000 The Department has made the following ex-gratia payments: Ex-gratia payments – – – –

Note 25. Annotated receipts agreements The following is a listing of Section 29 Annotated Revenue Agreements approved by the Treasurer. 2008 2007 $’000 $’000 Commonwealth Speciﬁ c Purpose Payments Net Appropriation Agreement– Tradestart – 65 – 65

107 Department of Innovation, Industry and Regional Development Annual Report 07-08 Note 26. Trust account balances

(a) Net asset trust balances The following is a list of trust account balances relating to trusts controlled by the Department. Each of these trust fund balances are stated in terms of the net asset position of each trust and include all assets and liabilities of each trust account. 2008 Opening Closing Balance * Revenue ** Expense Balance $’000 $’000 $’000 $’000 Department Working Trust Account Coode Island Remediation Fund – – – – Community Regional Industry Skills Program 2,756 – (432) 2,324 Science and Technology Research and Development Fund 2,703 576 (389) 2,890 Victorian Greenhouse Strategy Funds 389 – (136) 253 E-Commerce Program Trust 357 – (323) 34 Victorian Government Business Ofﬁ ce 634 900 (864) 670 Youth Employment Scheme 141 161 (81) 221 Infrastructure Precincts 314 – (139) 175 Recoup Trusts 101 – – 101 Business Sustainability – – – – Melbourne Major Events 297 6,620 (6,489) 428 Real Estate Agents Guarantee Fund 107 736 (846) (3) Energy Technology Innovation Strategy – – – – Werribee Project 103 – (24) 79 Australian Technology Showcase 6 – – 6 Centre for Energy and Greenhouse Technologies – – – – Dubai Education and Health Development Manager Trust – – – – AAV Communique Trust – – – – COMS 2007 Conference 2 – – 2 National Manufacturing Forum – – – – STI Awareness – 60 (60) – ICT Skills 222 – (64) 158 Project Funds 2,552 138 (57) 2,633 Reducing the Regulatory Burden 450 560 (80) 930 Melbourne 50 Years On 14 – – 14 Ezybiz 297 510 167 974 Greening Our Automotive Industry 300 – (91) 209 Data Centre Consolidation – – – – Workforce Participation Trust – 5,272 (305) 4,967 DPI Representative in North America – 200 (101) 99 CAT General Purpose Trust – (589) 1,122 533 Bookshop Working Account – 2,109 (2,113) (4) Vicﬂ eet Finance Lease Sales – (113) – (113) Departmental Suspense – – – – Commonwealth Trust Account – – – – Business Licensing Project – – – – Business Licence Centre – – – – Regional Infrastructure Development Fund 152,218 98,765 (51,495) 199,488 Revenue Clearing Account 450 (9) (103) 338 Australian Synchrotron Contributions Fund 44,500 21,715 (19,613) 46,602 Treasury Trust 63 5 – 68 208,976 137,616 (82,516) 264,076

* Opening balances have been adjusted to incorporate prior year Machinery of Government changes ** Revenue also incorporates 2008 Machinery of Government changes

108 Note 26. Trust account balances (continued) 2007 Opening Closing Balance Revenue Expense Balance $’000 $’000 $’000 $’000 Department Working Trust Account Coode Island Remediation Fund – – – – Community Regional Industry Skills Program 2,317 1,375 (936) 2,756 Science and Technology Research and Development Fund 2,630 595 (524) 2,701 Victorian Greenhouse Strategy Funds 999 – (658) 341 E-Commerce Program Trust 597 – (240) 357 Victorian Government Business Ofﬁ ce 916 200 (476) 640 Youth Employment Scheme 225 1 (85) 141 ALCOA IDC – – – – Infrastructure Precincts 314 – – 314 Recoup Trusts 101 – – 101 Business Sustainability 48 – – 48 Melbourne Major Events 440 1,055 (1,198) 297 Real Estate Agents Guarantee Fund 1,033 (17) (909) 107 Energy Technology Innovation Strategy 99 – (99) – Werribee Project 103 – – 103 Australian Technology Showcase 6 – – 6 Small Business Victoria Special Projects – – – – Centre for Energy and Greenhouse Technologies 41 – (41) – Dubai Education and Health Development Manager Trust 35 – (35) – AAV Communique Trust 27 – (27) – Premiers Food Victoria Awards – – – – COMS 2007 Conference 19 – (17) 2 National Manufacturing Forum 185 119 (304) – STI Awareness 6 60 (66) – ICT Skills – – (57) (57) Project Funds – – (17) (17) Reducing the Regulatory Burden – 450 – 450 Melbourne 50 Years On – 152 (138) 14 Ezybiz – 699 (402) 297 Greening Our Automotive Industry – 300 – 300 Data Centre Consolidation – 225 (225) – Commonwealth Trust Account Business Licensing Project 89 – (89) – Business Licence Centre 46 – (46) – Regional Infrastructure Development Fund 114,887 100,634 (63,303) 152,218 Revenue Clearing Account 438 12 – 450 Australian Synchrotron Contributions Fund – 44,500 – 44,500 Treasury Trust 102 102 (141) 63 125,703 150,462 (70,033) 206,132

109 Department of Innovation, Industry and Regional Development Annual Report 07-08 Note 26. Trust account balances (continued)

(b) Trust Account cash balances The following is a list of cash held in trust account balances relating to trusts controlled and administered by the Department.

2008 2007 $’000 $’000 (i) Controlled trusts Department Working Trust Account 16,558 11,720 Commonwealth Trust Account – – Regional Infrastructure Development Fund 198,055 152,903 Treasury Trust Account 68 172 Revenue Clearing Account 337 450 Australian Synchrotron Contributions Fund * 86,601 94,500 Total controlled trusts (Note 21) 301,619 259,745

(ii) Administered trusts Public Service Commuters Club Trust (88) (74) Total administered trusts (Note 26(b)) (88) (74)

* Year 2007 comparative has been adjusted to include funds received invested from the Commonwealth of $50m The Department portion of the Public Service Commuter Club Trust is temporarily in deﬁ cit due to the timing difference between the purchase of travel tickets and reimbursement from employees. The Trust’s working capital is funded by the Department of Treasury and Finance and the overall trust balance is in surplus.

(c) Trust accounts opened and closed by the Department during 2008 As part of the Machinery of Government changes that occurred during 2008 the following Trust Accounts have been opened: Workforce Participation Trust CAT General Purpose Trust Bookshop Working Trust The Department has closed MMV – ICT Infrastructure Strategy, and MMV – Lotus Notes Licensing Trust accounts during the current ﬁ nancial year.

110 Note 27. Responsible persons In accordance with the Ministerial Directions of the Minister for Finance under the Financial Management Act 1994, the following disclosures are made regarding responsible persons for the reporting period. Names The persons who held the positions of Ministers and Accountable Offi cers in the Department are as follows (i): Minister for Regional and Rural Development The Hon John Brumby MP 1 December 2006 to 3 August 2007 Minister for Regional and Rural Development The Hon Jacinta Allan MP 3 August 2007 to 30 June 2008 Minister for Skills, Education Services and Employment The Hon Jacinta Allan MP 1 December 2006 to 3 August 2007 Minister for Skills and Workforce Participation The Hon Jacinta Allan MP 3 August 2007 to 30 June 2008 Minister for Small Business The Hon Theo Theophanous MLC 1 December 2006 to 3 August 2007 Minister for Small Business The Hon Joe Helper MLA 3 August 2007 to 30 June 2008 Minister for Industrial Relations The Hon Rob Hulls MP 5 December 2002 to 30 June 2008 Minister for Tourism The Hon Tim Holding MP 1 December 2006 to 3 August 2007 Minister for Tourism and Major Events The Hon Tim Holding MP 3 August 2007 to 30 June 2008 Minister for Information and Communication Technology The Hon Tim Holding MP 1 December 2006 to 3 August 2007 Minister for Information and Communication Technology The Hon Theo Theophanous MLC 3 August 2007 to 30 June 2008 Minister for Innovation The Hon John Brumby MP 12 February 2002 to 3 August 2007 Minister for Innovation The Hon Gavin Jennings MLC 3 August 2007 to 30 June 2008 Minister for Industry and State Development The Hon Theo Theophanous MLC 1 December 2006 to 3 August 2007 Minister for Industry and Trade The Hon Theo Theophanous MLC 3 August 2007 to 30 June 2008 Minister for Major Projects The Hon Theo Theophanous MLC 1 December 2006 to 30 June 2008 Acting Secretary Mr Warren Hodgson 19 March 2007 to 26 August 2007 Secretary Mr Warren Hodgson 27 August 2007 to 13 May 2008 Secretary Mr Howard Ronaldson 13 May 2008 to 30 June 2008 (i) The Administrative Arrangements Order to restructure the functions of the Department is effective from 5 December 2006. However, under the terms of this Order, the fi nancial balances do not transfer until 1 January 2007 (refer Note 5). Remuneration Remuneration received or receivable by the Accountable Offi cers in connection with the management of the Department during the reporting period was in the range: $500,000-$599,999 (2007 – $340,000-$349,999). Other related transactions and loans requiring disclosure under the Directions of the Minister for Finance have been considered and there are no matters to report. Amounts relating to Ministers are reported in the fi nancial statements of the Department of Premier and Cabinet.

Note 28. Remuneration of executives The numbers of executive offi cers, other than Ministers and the Accountable Offi cers, and their total remuneration during the reporting period are shown in the fi rst two columns in the table overleaf in their relevant income bands. The base remuneration of executive offi cers is shown in the third and fourth columns. Base remuneration of executive offi cers is exclusive of bonus payments, long- service leave payments, redundancy payments and retirement benefi ts. For disclosure purposes, the numbers shown in the remuneration bands below include executives which have transferred to the Department from the Department of Planning and Community Development based on their full year remuneration. Several factors have affected 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. Some contracts provide for an annual bonus payment, whereas other contracts only include the payment of bonuses on the successful completion of the full term of the contract. A number of these contract completion bonuses became payable during the year.

111 Department of Innovation, Industry and Regional Development Annual Report 07-08 Note 28. Remuneration of executives (continued) A number of executives offi cers retired, resigned or were retrenched in the past year. This has had a signifi cant impact on total remuneration fi gures due to the inclusion of annual leave, long service leave and retrenchment payments. The remuneration paid to executives of Tourism Victoria are not reported in the details below, but are included as part of the Financial Statements of that agency. Total Remuneration Base Remuneration

Income Band 2008 2007 2008 2007 No. No. No. No. $0-$99,999 5 – 7 – $100,000-109,999 – – – 1 $110,000-119,999 – 1 – – $120,000-129,999 – 3 3 3 $130,000-139,999 3 5 2 9 $140,000-149,999 9 8 13 8 $150,000-159,999 9 4 5 4 $160,000-169,999 5 6 8 4 $170,000-179,999 5 2 2 5 $180,000-189,999 2 3 2 1 $190,000-199,999 1 3 2 1 $200,000-209,999 2 2 2 2 $210,000-219,999 2 1 1 $220,000-229,999 1 1 2 – $230,000-239,999 2 1 1 3 $240,000-249,999 – – 2 – $250,000-259,999 3 2 – – $260,000-269,999 – – – – $270,000-279,999 1 – 1 – $280,000-289,999 1 – – – $390,000-399,999 1 – – – Total numbers 52 42 52 42 Total amount ($’000) 8,828 6,020 8,016 5,728

Note 29. Remuneration of auditors 2008 2007 $’000 $’000 Victorian Auditor General’s Ofﬁ ce Audit or review of the ﬁ nancial report 187 113 187 113

112 Accountable Ofﬁ cer’s and Chief Finance Ofﬁ cer’s Declaration

We certify that the attached ﬁ nancial report for the Department of Innovation, Industry and Regional Development has been prepared in accordance with Standing Direction 4.2 of the Financial management Act 1994, applicable Financial Reporting Directions, Australian accounting standards and other mandatory professional reporting requirements.

We further state that, in our opinion, the information set out in the Operating Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and notes to and forming part of the fi nancial report, presents fairly the fi nancial transactions during the year ended 30 June 2008 and fi nancial position of the Department as at 30 June 2008.

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

We authorise the attached ﬁ nancial report for issue on the 4th September 2008.

Howard Ronaldson Secretary Department of Innovation, Industry and Regional Development Melbourne 4 September 2008

J. Hall Chief Finance Ofﬁ cer Department of Innovation, Industry and Regional Development Melbourne 4 September 2008

113 Department of Innovation, Industry and Regional Development Annual Report 07-08 114 115 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendices

Contents

Appendix 1: Administrative structure of the Department 117 Appendix 2: Workforce information 118 Appendix 3: Consultancies 120 Appendix 4: Agent General in London – Annual Report 121 Appendix 5: Human resources management 122 Appendix 6: Human Rights and Responsibilities Charter – DIIRD activities in 2008 123 Appendix 7: Freedom of Information 124 Appendix 8: Implementation of the Victorian Industry Participation Policy 125 Appendix 9: Compliance with the Building Act 127 Appendix 10: Attestation on compliance with the Australian/New Zealand Risk Management Standard 128 Appendix 11: Ofﬁ ce-based environmental impacts 129 Appendix 12: Financial review of operations and ﬁ nancial conditions 133 Appendix 13: Grants and related assistance 134 Appendix 14: Legislation Administered – Financial Year ending 30 June 2008 170 Appendix 15: Whistleblowers 171 Appendix 16: Budget Portfolio Outcomes 172 Appendix 17: Output groups 179 Appendix 18: Summary of additional information available upon request 186 Appendix 19: Contact details 187 Appendix 20: Disclosure index 190

116 Appendix 1: Administrative structure of the Department The organisational structure of the Department is outlined in section one of this report. It is also available on the DIIRD website at www.diird.gov.au. Machinery of Government (MoG) administrative changes that have occurred during 2007-08 As a consequence of the Premier’s General Order of 8 August 2007, the Department of Innovation, Industry and Regional Development (DIIRD) welcomed and consolidated the following business divisions into the Department this ﬁ nancial year:

1. The Citizen Access and 3. Major Projects Victoria Transformation Group Major Projects Victoria (MPV) delivers complex, large- The Citizen Access and Transformation (CAT) Group scale and unique projects for Government. Following was created following machinery of government Orders-in-Council made on 30 April 2008, the delivery of changes in late 2006. It drew together existing functions services by MPV was consolidated within DIIRD. from the former Offi ce of the Chief Information Offi cer Responsibility for MPV was previously held by the (CIO), Multimedia Victoria and the Department of (former) Department of Infrastructure (now the Planning and Community Development (DPCD), and Department of Transport). All performance measures comprises: previously reported by the Department of Infrastructure • Transformation Strategy and Service Innovation with respect to MPV will continue to be reported on by DIIRD. • E-services and contact centres including: Financial accounts for MPV remained the responsibility – Victoria Online of the Department of Transport until 30 June 2008. – eGovernment Resource Centre Consequently, MPV’s fi nancial reporting information is – Information Victoria call centre and bookshop, and included in the Department of Transport’s 2007–08 Annual Report, in accordance with the Financial – the whole-of-Victorian-government intranet and Management Act 1994. extranet. CAT was transferred to DIIRD in late 2007. 2. Workforce Participation Workforce Participation is a strategic priority of Industrial Relations Victoria aimed at giving Victorian industries, regions and employers access to a skilled and fl exible workforce. Workforce Participation was previously known as Employment Participation, and in 2007, was transferred to DIIRD from the former Department of Victorian Communities.

117 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 2: Workforce information Ongoing Employees Fixed Term Total & Casual Employees Employees Full time Part time Total Total Total Total c (headcount) (headcount) (headcount) (FTE) (FTE) (FTE) i Jun-07 714 58 772 750.55 117.90 868.45 d Jun-08 760 75 835 806.64 112.77 919.41 n Jun-07 Jun-08 e Ongoing Employees p Fixed Term Ongoing Fixed Term Totals p & Casual Employees & Casual a Employees Employees Headcount FTE FTE Headcount FTE FTE FTE Gender Male 348 347.00 45.10 370 367.64 35.33 402.97 Female 424 403.55 72.80 465 439.00 77.44 516.44 Age Under 25 18 18.00 20.80 21 21.00 13.54 34.54 25-34 176 172.10 47.00 170 165.10 56.20 221.30 35-44 206 192.29 25.50 224 206.73 25.43 232.16 45-54 242 239.36 15.10 258 253.37 11.40 264.77 55-64 120 118.80 9.50 146 144.64 6.20 150.84 Over 64 10 10.00 0.00 16 15.80 0.00 15.80 Classifi cation VPS1 1 1.00 5.00 1 1.00 0.00 1.00 VPS2 45 43.00 16.80 55 51.30 20.54 71.84 VPS3 131 125.70 23.00 145 138.89 19.00 157.89 VPS4 124 121.39 23.80 141 136.23 24.83 161.06 VPS5 200 193.86 29.40 202 195.16 24.40 219.56 VPS6 210 204.60 13.90 228 221.26 19.00 240.26 STS 6 6.00 2.00 7 7.00 1.00 8.00 Executives 54 54.00 0.00 54 53.80 0.00 53.80 Other 1 1.00 4.00 2 2.00 4.00 6.00 Division Brand Communication & Tourism 120 114.30 18.60 132.90 Corporate Service & Development 115 111.10 10.00 121.10 Industrial Relations 67 64.24 10.33 74.57 Industry & Trade 127 125.16 21.61 146.77 Innovation & Technology 100 95.10 15.00 110.10 Offi ce of Secretary 6 6.00 0.00 6.00 Regional Development Vic 132 128.14 17.60 145.74 Skills Victoria 112 108.00 12.03 120.03 Small Business Commissioner 15 13.60 2.00 15.60 Strategy & Coordination 36 36.00 4.60 40.60 Workplace Rights Advocate 5 5.00 1.00 6.00 919.41 Notes: – Jun-2007 employees reported with a classifi cation ‘Others Fixed Term’ are: Agent-General London 1 (FTE); Small Business Commissioner 1 (FTE); Workplace Rights Advocate 1 (FTE); Chief Executive RDV 1 (FTE) – Jun-2007 employees reported with a classifi cation ‘Others Ongoing’ are: 1 (FTE) Ministerial Driver – Jun-2008 employees reported with a classifi cation ‘Others Fixed Term’ are: Agent-General London 1 (FTE); Small Business Commissioner 1 (FTE); Workplace Rights Advocate 1 (FTE); Chief Executive RDV 1 (FTE) – Jun-2008 employees reported with a classifi cation ‘Others Ongoing’ are: 2 (FTE) Ministerial Drivers

118 Appendix 2: (continued) Workforce data staffi ng trends Year: 2004 2005 2006 2007 2008 Total (FTE) 672.98 d 680.31 659.7 868.45 i 919.41 c enProfi le of executive employees as at 30 June 2008 p Table 1: Number of executive offi cers classifi ed into ‘Ongoing’ and ‘Special Projects’ p Classifi cation All Ongoing Special Projects a No. Variation from No. Variation from No. Variation from previous year previous year previous year Secretary 1 0 1 0 0 0 EO-1 2 1 2 1 0 0 EO-2 18 1 17 2 1 -1 EO-3 40 -2 40 -1 0 -1 Total 61 0 60 2 1 -2

NB: Machinery of Government changes; 2 Executive positions from DPCD; 2 special projects positions expired during 2007-08

Table 2: Breakdown of executive ofﬁ cers into gender for ‘Ongoing’ and ‘Special Projects’ Classiﬁ cation Ongoing Special Projects Male Variation Female Variation Current Variation Male Variation Female Variation Current Variation from from vacancies from from from vacancies from previous previous previous previous previous previous year year year year year year Secretary 1 0 0 0 0 0 0 0 0 0 0 0 EO-1 2 1 0 0 0 0 0 0 0 0 0 0 EO-2 10 1 5 1 2 0 0 0 0 0 1 -1 EO-3 20 -4 15.8 0.8 4 2 0 0 0 0 0 -1 Total 33 -2 20.8 1.8 6 2 0 0 0 0 1 -2

Table 3: Reconciliation with executive numbers 2008 2007 Executives employed with total remuneration over $100,000 55 39 Add Vacant Roles 7 7 Executives employed with total remuneration below $100,000 5 24 Accountable Ofﬁ cers 1 1 Less Separations/LWOP 7 10 Total executive numbers as at 30 June 61 61

All ﬁ gures include Tourism Victoria and 2 EOs on LWOP

119 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 3: Consultancies

Engagement of Consultants in excess of $100,000 for 2007–08 Name of Consultant Purpose of Consultant Approved End Expenditure Future Completed Cost Cost 07–08 Commitments c (incl GST) (incl GST) (incl GST) i Dk2 Pty Ltd Evaluation of industry and universities d collaboration and ICT Industry Skills n Scholarships pilot programs $120,000 $118,349 $54,417 $0 e 31-Mar-08 The Nous Group Review of the Victorian screen industryp p to increase government & industry understanding, improve decision making a and help inform future government policy Not and initiatives $211,650 Completed $119,190 $92,460 Not Completed Deloitte Touche Tohmatsu Economic assessment of water Not infrastructure and water pricing study $267,905 Completed $150,000 $117,905 Not Completed Carnegie Wylie & Company Strategic advice in relation to the Not State’s discussions with Alcoa $275,000 Completed $39,105 $52,635 Not Completed Price Waterhouse Coopers Study to examine the economic impact of announced Regional Infrastructure Development Fund projects $352,000 $352,000 $352,000 $0 17-May-08 Concept Economics Modelling the economic impacts of potential outcomes of the National Not Broadband Network $385,000 Completed $0 $385,000 Not Completed KPMG Australia Cost & economic modelling of impact Not of broadband network $440,000 Completed $253,200 $186,800 Not Completed The Nous Group Delivery of the Departmental Not Organisational Strategy $591,830 Completed $439,298 $152,532 Not Completed KPMG Australia Consultancy – provide ﬁ nancial and consulting services and advice in Not relation to a proposed smelter $2,970,000 Completed $120,783 $2,090,761 Not Completed $5,613,386 $470,349 $1,527,993 $3,078,093

Engagement of consultants $100,000 and under for 2007–08 (inc. GST) Number of consultants $100,000 and under 63 Value of consultant expenditure $100,000 and under $1,657,297

120 Appendix 4: Agent General in London – Annual Report

In accordance with the Agent-General and • Investment opportunities and technology partnerships Commissioners for Victoria Act 2007, the Agent General were promoted to sectors includingi energy (solar, c submitted to the Minister for Industry and Traded a report bioenergy, wave and tidal, geothermal), food, fi nancial on performance against the duties of the role for the year services, nanotechnology, advanced manufacturing, nending 30 June 2008. A summary of this report follows: aerospace, transport and infrastructure, computer e games, and biotechnology p The Agent General in London is the Victorian Government’s chief representative in Europe, and has • Major Victorian initiatives were a particular focus, p delivered a range of activities and initiatives over the including desalination, ETIS Stage Two, transport, a 2007-08 fi nancial year, including the following: and renewable energy targets • Conducted an active program of visits to major On a Whole-of-Government basis investors under the Investor Development Program. • Facilitated visits by the Governor of Victoria as well as These activities have resulted in: 10 Victorian Ministers and a range of other delegations and departmental visits • New investment of $52m and 167 new jobs • Represented the Victorian Government at major • A potential pipeline of European investment into conferences and trade fairs Victoria, involving 93 projects with a total capital expenditure of $3.9b. • Strengthened existing sister-state relationships with Scotland and worked towards memoranda of In support of export programs understanding with Germany’s North Rhineland, Westphalia, and Brandenburg, based on common • Support provided for missions, promotions and interests in clean coal and energy technologies trade-fair participation in sectors including food, wine and nanotechnology • Supported a Department of Human Services initiative to recruit medical personnel from the UK to work in • Conducted research into emerging markets, including Victoria Russia, and generated new contacts. • Worked in cooperation with other Australian states, Working with Skills Victoria the Commonwealth Government, Qantas and Tourism Australia, to develop the design of ‘G’Day UK • To post an offi cer to London as part of the Global 2009’ event, ensuring that this landmark event Skills for Victoria strategy which aims to make Victoria promoting Australian investment, trade, tourism, a destination of choice for skilled and business migration, food and wine, also exposes its UK migrants. This initiative has resulted in contact with audience to branding and information about Victoria. more than 40,000 potential migrants in the UK and Ireland. Working with Tourism Victoria Supporting the Melbourne • Provided focused marketing, public relations and media activities which generated ‘free ink’ media Convention and Marketing Bureau exposure in print and online publications to the value • By facilitating the MCMB’s participation, through its of more than $25m European representative, in two major conference industry trade shows in Spain and Germany and by • Further development of language variant websites for undertaking marketing and sales activities across the English, German, French and Italian versions of Europe. This has helped secure six additional major www.visitmelbourne.com/uk and launched a new site conferences for Melbourne over the next fi ve years. in Spanish • Supported consumer marketing initiatives including a Launching the Victorians Abroad 32-page colour supplement for The Telegraph, program in the UK Victorian wine promotion with retailer Harrods, and a Spring Racing Carnival promotion in Ireland • Following the launch of the program in November 2007, and a range of subsequent activities, the UK • Provided ‘destination Victoria’ training to 3,500 staff chapter of ‘Victorians Abroad’ has now 822 of major tour operators throughout Europe and registered members. arranged market-visit opportunities to 142 additional tourism consultants. Working with Arts Victoria In conjunction with Invest Victoria • By providing assistance to support the successful European tour of the Melbourne Symphony • Continued with investment attraction and lead Orchestra. generation activities across Europe 121 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 5: Human resources management The Department has continued its commitment to OH&S compliance as well as general staff health and well being during the fi nancial year. ic Occupational Health and Safety d Lead Indicators Information for 2007/2008 n Incidents & hazards 1. a. Number 26 e b. Rate per 100 FTE p To be advised when FTE is fi nalised 2. a. pNumber of standard claims 4 a b. Rate of standard claims per 100 FTE To be advised when FTE is fi nalised 3. a. Number of lost time claims 4 b. Rate of lost time claims per 100 FTE To be advised when FTE is fi nalised Claims 4. a. Number of claims exceeding 13 weeks 3 b. Rate of claims exceeding 13 weeks 75% Fatalities 5. Fatalities claims Nil Claim costs 6. Average cost per standard claim $63,065 Return to work 7. % of claims that have a Return to Work plan 75% Management Commitment 8. a. Evidence of OH&S Policy Statement Policy statement displayed on all noticeboards b. OH&S objectives OH&S Strategy updated annually c. OH&S plans (signed by CEO or equivalent) d. Regular OH&S reporting to Senior Management OH&S Committee meets quarterly with minutes tabled at Strategy and Management Committee meetings, chaired by the Deputy Secretary. 9. Evidence of OH&S criteria in purchasing The Ethical Purchasing Policy requires the relevant contracting or guidelines (including goods, services and personnel) tendering entity to meet its obligations to its employees under Applicable Industrial Instruments and Legislation at the time a contract is awarded and to continue to meet such obligations during the term of that contract. Consultation 10. a. Evidence of agreed structure of DWGs, Representative DWGs established; HSRs elected for 90% of DWGs HSRs and Issue Resolution Procedures b. Compliance with agreed structure on DWGs, HSRs and IRP Issue Resolution Policy accessible via DIIRD intranet Risk Management 11. % of internal audits/inspections conducted as planned Propose to commence bi-annual risk assessments from 2009 12. % of issues identifi ed actioned arising from: • Internal audits No issues identifi ed • HSR PINSs No PINs issued • WorkSafe notices No notices issued • OHS Committee recommendations 90% of recommendations implemented so far • OH&S projects 80% of recommendations implemented so far Training 13. % of managers and staff who received OH&S training: 86% of new starters (96 people) completed an on-line OH&S training • induction module; 163 managers (64%) were provided with customised OH&S • management training training; contractors and temps have access to online OH&S information • contractors, temps and visitors (no specifi c training provided for these categories). 14. % of HSRs trained 90% • acceptance of role 100% • re-training (refresher) 100% OH&S Survey - Managers Workers and HSRs 15. Perception Survey: No surveys conducted in reporting period. • level of support and recognition of HSRs • workplace consultation & participation • management commitment • awareness of OH&S policies • reporting of incidents & injuries 122 Public administration values and Territory) agreed to review and, where appropriate, reform employment principles all existing legislative restrictions on competition. Under National Competition Policy, the guiding legislative principle The Public Administration Act 2004 abolished the Offi ce of is that legislation, including future legislative proposals, Commissioner for Public Employment, and established the should not restrict competition unless it can be State Services Authority. Notwithstanding, the Department of demonstrated that: Innovation, Industry and Regional Development continues to • the benefi ts of the restriction to the community as a c implement the previous directions of the Commissioner for i Public Employment with respect to upholding publicd sector whole outweigh the costs; and nconduct, managing and valuing diversity, managing • the objectives of the legislation can only be achieved by eunderperformance, reviewing personal grievances, and restricting competition. selecting on merit. Details can be found in Part 1 of this The Department continues to comply with the requirements p report, specifi cally in Section 5, Strengthen. p of the National Competition Policy. a Diversity Declaration of pecuniary interest The Department continues to foster workplace diversity, and In accordance with the general guidelines for declaration of demonstrated its commitment to an inclusive work pecuniary interest, relevant offi cers have completed environment through a number of initiatives throughout the declarations for the fi nancial year. year, including policy development, awareness-raising and personal and professional development opportunities for Shares held by senior offi cers in a staff, supervisors and managers. This information is included in Part 1 of this report, specifi cally in Section 5, Strengthen. statutory authority or subsidiary No offi cers hold shares as nominee or benefi ciary in a Youth Employment Scheme statutory authority or subsidiary. The Department has participated in the Youth Employment Scheme (YES) since its inception in 2000. Details of this year’s intake can be found in Part 1 of this report, specifi cally Appendix 6: Human in Section 5, Strengthen. Rights and Disability Action Plan The DIIRD Disability Action Plan 2006-09 incorporates a Responsibilities range of strategies to increase opportunities for people with a disability to participate in DIIRD programs. The plan is Charter – DIIRD based on six areas which were identifi ed as barriers to people with a disability accessing government departments, activities in 2008 including: employment and careers, staff awareness, information and communication, consultation and decision- Since 1 January 2008, The Charter of Human Rights and making, programs and services, and physical access. The Responsibilities has been fully operational across all public DIIRD Disability Action Plan 2006-09 is currently being authorities, including government departments and implemented and this will continue over a three-year period. agencies. Superannuation Scheme The Charter promotes transparency and accountability in government, reinforces protection in existing laws, sets Departmental employees who commenced prior to 1994 human rights as a priority for government, and ensures are members of either the Revised or New scheme, which government takes human rights into account when making are defi ned benefi ts schemes. These schemes are laws and delivering services. administered by the Government Superannuation Offi ce; now an operating division of the Emergency Services DIIRD administers a total of 62 Acts, and its portfolios Superannuation Board. Since 1994, employees are able to include: nominate to have employer contributions made to an • Regional and Rural Development external complying accumulation fund of their choice, or to • Skills and Workforce Participation VicSuper. Details of superannuation schemes to which the • Small Business Department made contributions, is in the Notes to the • Tourism and Major Events Financial Statements. • Industrial Relations Victoria • Innovation Disclosure of Major Contracts • Industry and Trade During the year ended 30 June 2008, the Department did • Information and Communications Technology, and not enter into any contracts greater than $10m in value. • Major Projects. Details of major contracts are disclosed in accordance with Each Act within the Department has been reviewed to the principles of the Freedom of Information Act 1982, and/ ensure compatibility with the Charter. In 2008, the Charter or Government guidelines and can be viewed online at has also been a focus of activity for the Department with www.contracts.vic.gov.au respect to the Review of the Child Employment Act 2003 National Competition Policy and the Review of Higher Education Legislation. In 1995, all Australian Governments (Federal, State and 123 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 7: Freedom of Information

The Freedom of Information Act 1982 (FoI Act) allows Information Privacy the public a right of access to documents held by the The Department and agencies are committed to Department. respecting and protecting the privacy of personal c Requests for documents under the FoI Act commonly information and health records. i relate to policy matters, programs, projects, proposals, The Information Privacy Act 2000 (IP Act) aims to d consultancies and contracts. increase public confi dence in the Government’s ability to n In 2007-08, the Department (including Tourism Victoria) protect and manage the personal informatione that it received 105 requests for access to information. pcollects and stores. It also promotes the free and In response,p the Department provided either partial or appropriate exchange of information in the community. afull access to information on 25 occasions. In six The Department has developed Information and Health instances, the Department was not in possession of any Records Privacy Policies. A copy of the policies can be documents relevant to the requests lodged by the obtained by contacting: applicants, and fi ve requests were denied any access. Privacy Offi cer Seventeen requests were either withdrawn, transferred to other agencies or did not proceed due to other Department of Innovation, Industry and Regional factors. Development As at 30 June 2008, 60 requests remained ongoing. Level 31, 121 Exhibition Street Melbourne VIC 3000 In 2007-08, four decisions were reviewed internally under section 51 of the FoI Act, and six appeals were Telephone 9651 9749 or 9651 9554 lodged with the Victorian Civil and Administrative Tribunal Facsimile 9651 9129 (VCAT). No complaints were referred to the Email [email protected] Ombudsman. More information and resources are also available online at: Contact Details • Victorian Privacy Commission The Department’s Principal Offi cer is: www.privacy.vic.gov.au Howard Ronaldson, Secretary • Health Services Commissioner Department of Innovation, Industry and Regional www.health.vic.gov.ah/hsc Development • Federal Privacy Commission Level 31, 121 Exhibition Street, Melbourne VIC 3000. www.privacy.gov.au The FoI Offi cers’ contact details are below: Dermuid McCabe Manager, Freedom of Information & Privacy Business Advisory Services, Corporate Services and Development Department of Innovation, Industry and Regional Development GPO Box 4509, Melbourne VIC 3001. Telephone 9651 9749 or 9651 9554 Facsimile 9651 9129 Email [email protected] Further information or assistance on how to lodge a request under the FoI Act can be obtained from FoI Online at www.foi.vic.gov.au.

124 Appendix 8: Implementation of the Victorian Industry Participation Policy In October 2003, the Victorian Parliament passed the Victorian Industry Participation Policy Act 2003 which requires public bodies and Departments to report on the implementation of the Victorian Industry Participation Policy (VIPP). c Departments and public bodies are required to apply VIPP in all tenders over $3m in metropolitani Melbourne and n$1m in regional Victoria. d eNew Projects p Contracts/grants Number of Regional/ Value Jobs Local Skills p contracts/ Metropolitan/ ($m) Content a grants State (%) Investment Attraction 5 2/3/0 62.23 893 60 Skills & Tech Transfer committed grants include the use of international technology, the transfer of technology to suppliers, forming relationships with tertiary education institutions to ensure necessary staff training, the use of the latest technology and systems. Science, Technology and 5 1/3/1 32 52.2 66 • Capability building, in particular Innovation Infrastructure specialised equipment and skills, for grants interfacing neural tissue to mechanical devices, in particular electrode fabrication, signal processing and polymer material interfacing. • Transform the management of chronic disease using broadband- based services to monitor and support adherence to care management plans for consumers with Type 2 Diabetes in the Barwon South Western region of Victoria. Regional Infrastructure 8 8/0/0 18.29 622 97 • An emerging technology – uptake of Development grants new technology and use to achieve improved efﬁ ciencies in broad range of industry sectors, including agricultural sector with precision farming; ICT, land management, equipment supply and maintenance. • Exposing Victorian companies to world’s best practice in workplace innovation, e-commerce and the use of technologies and materials. Other contracts 9 8/0/1 12.56 25 99

125 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 8: (continued) Completed Projects Contracts/grants Number of Regional/ Value Jobs Local Skills contracts/ Metropolitan/ ($m) Content grants State (%) ic Investment d Attraction grants 0 0/0/0 0 0 0 N/A n Science, Technology and 6 2/3/1 25.05 90.3 72 • Offers access to state-of-the-arte Innovation Infrastructure micro and nanotechnology fabrication grants p equipment and a highly trained p workforce, in a clustered, highly a interactive environment. Provides world-class research and testing facilities for transportation combustion emission and environmental effi ciency development. • Becomes a commercial catalyst for building a strong local knowledge base in the fi eld of quantum communications technology. This to be achieved by creating a strong network with overseas interests at both the research and industry level, positioning Victoria as a signifi cant player in this technology fi eld and enabling facilitation of global supply chains. In turn to be achieved by developing a world-class facility focused on design and manufacture of a single photon source and transmission and detection of single photons. Regional Infrastructure 4 4/0/0 5.67 170 98.75 Pursuit of attraction and expansion of Development grants innovative, high-tech businesses to the Estate. Promotes innovation via e-commerce, management and industry training. Other contracts 0 0/0/0 0 0 0 N/A

During 2007-08, the Department also conducted a comprehensive program of VIPP information sessions throughout metropolitan and regional Victoria to highlight recent amendments to the Policy. The information sessions were targeted at Government agencies and bidders for major government procurement projects and were attended by several hundred representatives of these organisations.

126 Appendix 9: Compliance with the Building Act All government departments and funded agencies are Asset disposal ic required to comply with the requirements of the Building The former TAFE campus in Queensberry Street, North Act 1993, the Building Code of Australia and statutoryd Melbourne was disposed of. nobligations set by government. eThe Building Act 1993 applies to construction, TAFE capital works projects: p demolition, removal and refurbishment of capital projects Completed and the Building Code of Australia relates to standards p Victorian Government-funded a set for building regulations. Skills Victoria has responsibility for over 1055 buildings in In 2007-08, the following Victorian Government-funded the TAFE asset portfolio. Land, buildings and service project was completed: infrastructure are vested in the name of individual TAFE • The construction of the National Centre for Institutes for their day-to-day management and Sustainability, Environmental Design and Land maintenance. Management at Swinburne University’s Wantirna campus. TAFE Capital resources Australian Government-funded Asset management The following projects funded by the Australian The TAFE asset portfolio is made up of over 1055 Government through the Department of Education, buildings worth approximately $2.1b. The age of the Employment and Workplace Relations were completed asset portfolio ranges from new to over 100 years old. in 2007-08: The average age of the building stock is approximately • The Centre for integrated Engineering and Science at 23 years. the Dandenong campus of Chisholm Institute of TAFE The Minister’s statewide property portfolio responds to • The upgrade of the Television Studio at the the requirements of the various TAFE institutions and Collingwood campus of Northern Melbourne Institute Government. The ongoing property management of TAFE program deals with asset disposals declared surplus by TAFE institutions and property acquisitions where • Consolidation of Engineering and IT Studies at the Government determines that a need exists to expand Footscray and Sunshine campuses of Victoria the TAFE system. University (TAFE Division) Asset investment • Relocation and consolidation of fashion programs at the Richmond campus of Kangan Batman Institute of In 2007-08, major capital developments commenced at: TAFE Bendigo Regional Institute of TAFE • Tourism and Hospitality redevelopment – Wodonga Central Gippsland Institute of TAFE campus, Wodonga Institute of TAFE. Goulburn Ovens Institute of TAFE TAFE capital works projects: Northern Melbourne Institute of TAFE For Construction South West Institute of TAFE Victorian Government-funded William Angliss Institute of TAFE. The following projects were funded by the Victorian Major works were completed at: Government in 2007-08: Chisholm Institute of TAFE • Stage 2 of the Kangan Batman Institute of TAFE Kangan Batman Institute of TAFE Automobile Centre of Excellence at Docklands Victoria University (TAFE Division) • Redevelopment of the Charleston Road campus of the Bendigo Regional Institute of TAFE Wodonga Institute of TAFE. • Redevelopment of the Epping campus of Northern State capital infrastructure funding, which included the Melbourne Institute of TAFE replacement of teaching equipment, enabled TAFE institutions to keep pace with new and emerging • Development of the Nursing Skills Centre of technology. Teaching equipment is aligned to industry Excellence for Box Hill Institute of TAFE standards, which ensures that students are well • Redevelopment of Building H, Gordon Institute of prepared for the workplace. TAFE East Geelong Campus to accommodate the relocation of all programs and administrative functions from Deakin University at Waurn Ponds. 127 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 9: (continued) Australian Government-funded Appendix 10: The following projects were funded by the Australian Attestation on Government through the Department of Education, Employment and Workplace Relations and were being compliance with undertaken in 2007-08: ic • Stage 3 development of the Warrnambool campus of the Australian/New d South West Institute of TAFE n • Relocation and consolidation of fashion programs at Zealand Risk e the Richmond campus of Kangan Batman Institute of TAFE p pManagement • New link building at the William Angliss Institute of aTAFE Standard • Redevelopment of Building Q at the Fairfi eld campus I, Howard Ronaldson, certify that the Department of of Northern Melbourne Institute of TAFE Innovation, Industry and Regional Development has risk • Development of a new Primary Industries Centre at management processes in place broadly consistent with Wangaratta for Goulbourn Ovens Institute of TAFE the Australian/New Zealand Risk Management Standard • A new campus at Leongatha for Central Gippsland (or equivalent designated standard) and an internal Institute of TAFE control system is in place that enables the executive to understand, manage and satisfactorily control risk • Upgrade of Building W on the Dandenong campus of exposures. The Audit Committee verifi es this assurance Chisholm Institute of TAFE. and that the risk profi le of the Department of Innovation, Industry and Regional Development has been critically reviewed within the last 12 months.

Howard Ronaldson Secretary Department of Innovation, Industry and Regional Development

128 Appendix 11: Ofﬁ ce-based environmental impacts Energy Use ic d 2007-08 nTotal energy usage segmented by primary source Electricity (non-Green Power, i.e. dirty 6,391,415 MJ e electricity) pp Electricity (GreenPower) 1,141,488 MJ Total greenhouse gas emissions segmented by Electricity (non-GreenPower, a primary source i.e. dirty electricity) 2,326 CO equivalent 2

Electricity (GreenPower) 0 CO2 equivalent Units of energy used per full time employee 8,366 MJ/FTE Units of energy used per unit of ofﬁ ce space 314 MJ/square metre Cost of GreenPower $11,441 Percentage of GreenPower purchased 15.2%

Actions undertaken during the year to reduce energy use • Conducted energy-reduction campaigns • Use of sensor lights • Majority of all screens are LCD or ﬂ at screens • Sleep mode enabled on all printers and multifunction devices where possible • Automatic switch off of all networked computers after 9pm • Automatic switch off of computer screens after 20 minutes • Participated in Earth Hour switch-off 2008-09 Target: To increase purchase of GreenPower to 20% of total energy consumption Explanatory notes: Includes data from CBD, metropolitan and regional locations regardless of size. Annual data for 505 Little Collins and Ballarat is estimated based on 5 and 6 months consumption respectively. The data excludes interstate and overseas ofﬁ ces. The Department of Innovation, Industry and Regional Development has been affected by Machinery of Government changes in 2007–08.

129 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 11: (continued) Waste production 2007-08 Units of waste produced per FTE 49 Kg/FTE/yr ic Total units of waste recycled 43,745 Kg/yr d Recycling rate 88 % n Greenhouse emissions from waste to landﬁ ll (detailed) - based on weighted average of all audits 3.96 Tonnes Co -e pe2 Actionsp undertaken during the year to reduce waste a• Conducted waste audits and spot audits • Recycled toners and cartridges • Donated surplus stationery and kitchen items to charities and schools • Member of Green Collect • Recycled corks, batteries, CDs, DVDs, mobile phones and accessories 2008-09 Target: To divert at least 90% of all waste material from landﬁ ll to recyclable. Explanatory notes: Data from independent waste audits conducted in December 2007 and May 2008. The December audit measured waste from 121 Exhibition Street only and the May audit measured waste from both 121 Exhibition and 80 Collins Street. The Department of Innovation, Industry and Regional Development has been affected by Machinery of Government changes in 2007–08.

Paper use 2007-08 Total units of paper used 15,242 Reams Units of paper used per FTE 16.93 Reams/FTE Percentage 75-100% recycled content copy paper purchased (%) 96 % Percentage 50-75% recycled content copy paper purchased (%) N/A % Percentage 0-50% recycled content copy paper purchased (%) 4 %

Actions undertaken during the year to reduce paper usage • Conducted paper reduction campaigns • Created notepads from old letterhead stationery • All printers default to duplex (print on both sides) 2008-09 Target: To reduce paper consumption (Reams/FTE) by a further 5% Explanatory notes: Includes data from CBD, metropolitan and regional locations regardless of size. Excludes interstate and overseas ofﬁ ces. The Department of Innovation, Industry and Regional Development has been affected by Machinery of Government changes in 2007–08.

130 Appendix 11: (continued) Transportation 2007-08 By Fuel Type Litres MJ km tonnes CO -e tonnes 2 c iCO -e/1,000km 2 nPetrol 95,823 3,277,146 d987,318 239 0.24 eLPG 42,738 1,119,743 351,520 73 0.21 p Total 138,561 4,396,890 1,338,838 312 0.23 p Air Travel a Total distance travelled 2,558,521km Percentage of employees regularly (>75% of work attendance days) using public transport, cycling, or walking to and from work 80.3%

Action taken during the year to reduce energy use in the vehicle fl eet • Promoted use of public transport for meetings within the CBD • Promoted the use of sustainable transport (public transport, cycling and walking) • Developed a policy to purchase low emission vehicles (LPG, hybrid or 4 cylinder) for DIIRD’s operational vehicle fl eet (red plate) • Participated in the TravelSmart survey • Participated in Ride to Work Day 2007 2008-09 Target: To ensure that at least 60% of DIIRD’s operational vehicle fl eet are LPG or low emission. Explanatory notes: Includes data from DIIRD’s operational (red plate) vehicle fl eet and the State Government Vehicle Pool. Excludes Executive Offi cer vehicles. (Note that data reported for 2006-07 included Executive Offi cer vehicles). In line with the Victorian Government’s commitment in Our Environment, Our Future 2006 to offset the Victorian Government’s passenger vehicle fl eet emissions, the Department of Sustainability and Environment (DSE) will purchase offsets equivalent to DIIRD’s passenger vehicle emissions for the 2007–08 fi nancial year. This purchase of offsets will be done in arrears based on emissions data calculated by VicFleet using mileage and average fuel consumption data for different vehicle/fuel types and based on VicFleet’s defi nition for passenger vehicles. The Department of Innovation, Industry and Regional Development has been affected by Machinery of Government changes in 2007–08.

Procurement Government’s Environmental Purchasing Policy • Purchased paper with 50% or greater recycle content • Promoted use of the re-use stationery bank • Procured Energy Start and WELS-rated equipment • Provided training on sustainable purchasing

2008-09 Target: To ensure that 45% of the total amount spent of stationery per annum is environmentally friendly or has recycled content (currently 40%). Explanatory notes: Includes data from CBD, metropolitan and regional locations regardless of size. Excludes interstate and overseas ofﬁ ces. The Department of Innovation, Industry and Regional Development has been affected by Machinery of Government changes in 2007–08.

131 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 11: (continued) Greenhouse gas emissions Greenhouse gas emissions 2007-08 Total Greenhouse Gas emissions associated with energy use (t CO -e) 2,326 2 ic Total Greenhouse Gas emissions associated with vehicle ﬂ eet (t CO -e) 312.21 2 d Total Greenhouse Gas emissions associated with air travel (t CO -e) 787.24 2 n Total Greenhouse Gas emissions associated with waste production (t CO -e) 5.63 2 e Other Greenhouse emissions associated with departmental operationsp N/A Total pGreenhouse emissions associated with departmental operations 3,431 aGreenhouse gas emissions offsets purchased (t CO -e) N/A 2 Action taken during the year to reduce Greenhouse gas emissions • Actions undertaken to reduce energy consumption, transport and waste production have been towards reducing greenhouse gas emissions 2008-09 Target:

To reduce greenhouse gas emissions (tonnes CO2-e/FTE) associated with the operational vehicle fl eet by a further 6%. Water consumption Water source Offi ce/ litres/ litres/ % of all % of Non-offi ce Scope FTE year sites total FTEs Mandatory Potable water use Offi ce Government-owned1 – – – – Leased buildings (Base building and tenancy usage)2 14,239 1,121,721 20% 11% Leased building (Tenancy water usage only)3 2,053 1,282,769 6% 69% Optional Leased Building (Non-offi ce use)4 N/A 801,033 19% N/A

1 Government-owned – (2 Treasury Place). Water consumption for Department of Innovation, Industry and Regional Development staff located within the Government-owned Treasury Precinct is reported by the Department of Treasury and Finance as part of the total water consumption for the precinct. There has been a decrease in water consumption at this precinct this year. 2 Leased Building. Base building & tenancy usage only – The water data includes base building and tenancy water use by the Department. This is calculated based on Net Lettable Area of the Department’s tenancy. 3 Leased Building. Tenancy water usage only – (121 Exhibition St). The water data from 121 Exhibition St is an extrapolated tenancy usage (Kitchen & Shower only) based on information provided by metered Department of Transport tenancy, who also occupy the premises. 4 Leased Building. Non-offi ce usage only – The water data includes base building and non-offi ce tenancy usage by the Department. Actions undertaken during the year to reduce water use • Conducted black and grey water recycling plant tours • Conducted seminars on saving water at work and home • Organised a free shower head exchange • Purchased water effi cient appliances 2008-09 Target: To conduct at least one water conservation campaign. Explanatory note: All of the Department of Innovation, Industry and Regional Development reported sites have been affected by Machinery of Government changes during the year. 132 Appendix 12: Financial review of operations and fi nancial conditions Five year fi nancial summary c 2008 2007 2006 2005i 2004 $’000d $’000 $’000 $’000 $’000 nRevenue from Government 1,504,965 969,834 419,851 328,742 293,597 eOther revenue 37,728 6,545 5,878 4,779 3,936 pp Total income 1,542,693 976,379 425,729 333,521 297,533 a Total expenses (1,461,154) (940,546) (417,385) (334,023) (311,360) Net operating result for the reporting period 81,539 35,833 8,344 (502) (13,827) Net cash fl ow from operations 41,460 87,290 16,526 1,811 (16,778) Total assets 478,642 547,549 363,994 284,165 210,727 Total liabilities 171,060 176,202 47,016 36,140 35,337

The Department’s revenue from government has Signifi cant fi nancial activities of the Department during increased in the current year mainly due to: the year included: • Higher appropriations received in the current fi nancial • The integration of the activities assumed as a result of year, mainly as a result of the inclusion of the full year machinery of government changes including Skills Training and Further Education output (as compared output relating to Workplace Participation effective to a partial year output in 2006-07) for TAFE Institutes 2 September 2007, and the part of the Information, including CAC. In addition the increase is attributable Communication and Technologies output relating to to a portion of the Skills output relating to Workplace Citizens Access and Transformation effective Participation effective 2 September 2007, as well as a 2 November 2007. portion of the Information and Communication • Transfer of the Synchrotron Asset to the administered Technology Policy and Programs output relating to entity. Citizens Access and Transformation effective 2 November 2007 as a result of the 2007-08 • As a result of further machinery of government machinery of government changes. changes announced on 1 April 2008, Major Projects Victoria has been integrated within DIIRD. However, • The increase in revenue is also refl ected in an for fi nancial reporting purposes this does take effect increased level of expenditure from operations in until 1 July 2008. 2007-08 as compared to the previous year. In general, the deliveries of services by the seven output The reduction in the Department’s total assets have group activities of the Department were within the resulted from: defi ned budgetary objectives. Exceptions were mainly • The transfer of the Synchrotron Asset of $157.3m to due to agreed changes in committed projects being the administered entity. delivered in the next fi nancial year. Information on the • This has been partly offset by higher cash balances delivery of services by the Output Groups of the held in trust accounts which was mainly attributable Department is outlined in Note 2 of the Financial Report to an increase in unspent funds held in the RIDF Trust (pages 80 to 84). account as well as interest earned of $16m for the A comparison of budget to actual fi nancial statements 2007-08 year. It is anticipated that the balance in the for the portfolio are contained in the ‘Budget Portfolio trust will be fully expended in future years. Outcomes’ section of the Annual Report (Appendix 16: • Furthermore this reduction has also been offset by an pages 172 to 178). increase in receivables in 2007-08 relating to amounts owing to the Department by the Victorian Government and a loan to the Synchrotron Holding Co. of $17.4m. The Department’s total liabilities have decreased slightly as a result of the recognition of previously deferred income of $10m which was provided for the Synchrotron operation from the Commonwealth Government. 133 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 13: Grants and related assistance Table of Contents Policy grants 156 c Enhancing Sustainability in Investments 156 i Investment and industry-related grants 135 Enhancing Greenhouse Considerations in New Investment 156 d Business Development grants 135 Provision of Import Replacement Services 156 n Agenda for New Manufacturing – Business Of Sport 136 Industrial Relations grants e 156 Agenda for New Manufacturing – Defence Industry Strategy 136 p Agenda for New Manufacturing – Partners At Work 156 Agenda for New Manufacturing – Export 136 p Employment Initiatives 156 Agenda for New Manufacturing – General 137 a Returning to Earning 159 Agenda for New Manufacturing – Image Campaign 137 Events and Sponsorships 159 Agenda for New Manufacturing – Technology Uptake 137 Support Funding 159 Agenda for New Manufacturing – Victorian Manufacturing Strategy 138 Science, Technology and Innovation grants 160 Business Assistance – General 138 2007 Victoria Fellowship 160 Design Sector Strategy 138 2007 Victoria Prize 160 eCommerce Program 138 Biomedical Research – Operational Infrastructure Support Program 160 Events and Sponsorships 138 Biotechnology 161 Grow Your Business 139 CRC Support Program 161 Opening Doors to Export Plan 141 Healthy Futures – The Victorian Life Sciences Statement 161 Skills Statement – My Business My People 142 NCRIS 161 Small Business Statement 142 Science & Technology R&D Fund 161 StreetLife 143 Skills and Awareness 162 Support Funding 144 STI Awareness Grant from DPC 162 Trade Fairs and Missions 144 STI Initiative 162 Regional Development Victoria (RDV) grants 145 Support Funding 163 Community Regional Industry Skills Program (CRISP) 145 Synchrotron 163 Drought Assistance Package – Local Govt 145 Vic Start Program 163 Drought Assistance Packages 145 Victorian Endowment for Science, Knowledge & Innovation Ltd 163 Farmers’ Markets 145 Multimedia Victoria grants 164 Gippsland Flood Recovery 2007 146 Connecting Victoria 164 Living Regions Living Suburbs 146 Victorian Life Sciences Computation Initiative Grant 164 Make it Happen in Provincial Victoria 147 Broadband Innovation Fund 164 Next Generation Food Strategy 147 NICTA Victorian Research Laboratory 164 Provincial Victoria Growth Fund 148 Eresearch (ILS) Projects 164 Regional Business Investment Ready Program 150 TAFE ICT IBL Development 164 Regional Innovation Clusters Program 151 ICT Careers Awareness 165 Regional Investment Initiative 151 ICT Industry Skills Scholarships Pilot 165 Rural Skills Connect Project 151 ICT Business Assistance Program 165 Regional Infrastructure Development Fund (RIDF) 152 Trade Fairs – grants 165 RIDF– Local Roads To Markets 152 Priority Industry Programs 168 RIDF – Local Ports 152 GamePlan Implementation 168 RIDF – Regional Arts Infrastructure 152 Motion Capture Studio 169 RIDF – Regional Aviation 152 ICT Industry Associations 169 RIDF – Water For Industry 152 ICT Industry Linkages 169 RIDF – Rural Showgrounds 153 Innovative Market Solutions 169 RIDF – Energy 153 Effective Use Project 169 RIDF – Regional Industry Investment Program 153 RIDF – Industrial Estates 153 RIDF – Other (Education, Tourism, ICT) 153 Small Towns Development Fund 154 134 Appendix 13: (continued) As in previous years, the Department has provided assistance to companies and organisations. Financial assistance provided in 2007–08 is listed from this page to page 169. ic Investment and industry-relatedd Business Development grants grants The Department provided assistance through a number of n programs to companies and organisations to support eThe Department’s investment attraction activities include enterprise improvement, export growth, business p facilitative or fi nancial assistance. development and promotional activities. p In 2007-08 fi nancial assistance of $21.7m was paid to the The Department also delivered a range of enterprise a companies and organisations listed below (details of improvement services to Victorian companies to improve investment grants have not been disclosed as they are the effi ciency and effectiveness of their operations in areas deemed commercial in confi dence. including strategic planning and export. Organisation Financial assistance of $13.6m was provided to the Aerospace Australia Ltd following companies and organisations are listed on pages 136 – 144. Aisin (Australia) Pty Ltd Computershare Limited Epping Timber Prefab Co Pty Ltd Film Victoria GE Capital Finance Australasia Pty Ltd George Weston Foods Ltd GlaxoSmithKline Australia Pty Ltd GM Holden Limited Hawker De Havilland Aerospace Pty Ltd IBM Global Services Australia Ltd Jetstar Airways Pty Ltd John Holland Aviation Services Pty Ltd Kuehne & Nagel Pty Ltd Maritime Global Pty Ltd MCK Pacifi c Pty Ltd Pilkington (Australia) Ltd Plantic Technologies Limited R Radford & Son Pty Ltd Schiavello Group Pty Ltd Tasman Group Services Pty Ltd Tiger Airways Australia Pty Ltd Tourism Victoria Toyota Technical Center Asia Pacifi c Australia Pty Ltd Tyco Water Pty Ltd Universal Biosensors Pty Ltd Woolworths Ltd

135 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 13: (continued) Agenda for New Manufacturing – Business of Sport Organisation Payment $ Industry Capability Network (Vic) Ltd 100,000 Total 100,000 ic Agenda for New Manufacturing – Defence Industry Strategy nd Organisation e Australian Industry & Defence Network Inc – Victoria p 45,000 aTotalp 45,000 Agenda for New Manufacturing – Export Organisation Aust-China Group Pty Ltd 418,000 Australian Alpine Valley Agribusiness Forum Inc 7,798 Australian Automotive Aftermarket Association Ltd 10,000 Australian Electrical and Electronic Manufacturers Association Ltd 4,500 Australian Industry & Defence Network Inc – Victoria 6,000 Australian Nano Business Forum Ltd 15,000 Business Networking for Growth (Central Victoria) Inc 6,000 Chislett Developments Pty Ltd 2,337 City of Greater Dandenong 10,000 City of Greater Shepparton 6,000 City of Kingston 4,000 Clarinox Technologies Pty Ltd 7,500 CMI Industrial Pty Ltd 4,000 ContactCenterWorld.com (North America) Inc 3,000 Cottage Lane Pty Ltd 9,480 DesignInc Melbourne Pty Ltd 59,524 Eastberry Group Pty Ltd 15,000 Equinox Manufacturing Industries Pty Ltd 11,500 Frankston City Council 7,500 H2 Pty Ltd 7,500 Industry Capability Network (Vic) Ltd 155,000 Institute of Management Consultants 10,000 Master Builders Australia Inc 34,840 Melbourne’s West Export Network Inc 6,000 MGI Boyd (Melbourne) Pty Ltd 14,243 Mildura Rural City Council 6,000 Pangaea Software Pty Ltd 5,875 Plastics and Chemicals Industries Association Inc 17,500 Science Industry Australia Inc 4,000 Strategic Enterprise Development Pty Ltd 19,000 Sunny Lifestyle Group Pty Ltd 11,500 The Australian Industry Group 27,000 The Pizza Wine Co Pty Ltd 85,000 Tourism Victoria 30,000 Victorian Employers Chamber of Commerce and Industry 94,828 Wimmera Development Association Inc 10,000 Total 1,145,425 136 Appendix 13: (continued) Agenda for New Manufacturing – General Organisation Payment $ Australian Manufacturing Technology Institute Ltd 9,521 Burn Brite Lights (Vic) Pty Limited 7,500 c City of Greater Dandenong i6,000 Ex-Pak Pty Ltd d 15,000 nExpress Promotions Australia Pty Ltd 7,463 eGoulburn Ovens Institute of TAFE 16,500 p Logistics Association of Australia (Vic) Inc 22,000 p MTM Pty Ltd 7,500 a Olin Australia Limited 7,500 Pentair Water Australia Pty Ltd 10,463 PMP Limited 9,375 PSW Pty Ltd 15,000 Rosebank Engineering Pty Ltd 7,500 Sanbrook Brands Pty Ltd 15,000 SIRF Round Tables Pty Ltd 14,000 Transport and Distribution Industry Training Board (Vic) Inc 75,000 Victorian Transport Association Inc 4,000 Welvic Australia Pty Ltd 15,000 Wimmera Development Association Inc 7,636 Total 271,958 Agenda for New Manufacturing – Image Campaign Organisation Association for Manufacturing Excellence – Australia Region Inc 15,000 Australian Electrical and Electronic Manufacturers Association Ltd 15,000 Australian Water Association Ltd 40,000 Blooming Books Pty Ltd 8,000 Boating Industry Association of Victoria Ltd. 5,000 Confectionery Manufacturers of Australasia Limited 20,000 Federation of Automotive Products Manufacturers Ltd 14,500 La Trobe University 30,000 Manufacturing and Engineering Skills Advisory Board Inc 20,000 RMIT University 30,000 SIRF Round Tables Pty Ltd 10,000 Society of Automotive Engineers – Australasia 9,000 Victorian Automobile Chamber of Commerce 8,000 Total 224,500 Agenda for New Manufacturing – Technology Uptake Organisation Checkmate Merchandising Pty Ltd 6,250 Design Reality Pty Ltd 19,909 Enviro Property Services Pty Ltd 17,480 Express Promotions Australia Pty Ltd 20,000 Hearworks Pty Ltd 20,000 RM Russell Trading Pty Ltd 14,600 The Institution of Engineers Australia - Victoria Division 18,000 Wannon Region Water Authority 15,593 Total 131,832 137 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 13: (continued)

Agenda for New Manufacturing – Victorian Manufacturing Strategy Organisation Payment $ Industry Capability Network Ltd 40,000 c Victorian Centre for Advanced Materials Manufacturing 600,000 i Total e640,000 nd Business Assistance – General p Organisationp aAustralian Aerospace and Defence Innovations Ltd 250,000 Australian Industry & Defence Network Inc – Victoria 5,000 Australian Logistics Council Inc 5,000 Council of Textiles and Fashion Industries of Australia Limited 6,650 CRC for Advanced Automotive Technology Ltd 217,000 DMTC Limited 1,800,000 GMIC Ltd 18,900 Melbourne Convention and Visitors Bureau Ltd 375,000 Monash University 450,000 Transport and Distribution Industry Training Board (Vic) Inc 5,000 University of Ballarat 100,000 University of Melbourne 100,000 Victorian Airfreight Council Ltd 75,000 Victorian Freight and Logistics Council Ltd 5,000 Victorian Major Events Co Ltd 650,000 Total 4,062,550 Design Sector Strategy Organisation Design Institute of Australia 30,000 RMIT University 601,425 Total 631,425 eCommerce Program Organisation GKN Aerospace Engineering Services Pty Ltd 40,000 Total 40,000 Events and Sponsorships Organisation City of Melbourne 50,000 City of Whittlesea 10,000 Leader Associated Newspapers Pty Ltd 25,000 Melbourne Fashion Festival Ltd 1,050,000 Melbourne Food and Wine Events Ltd 1,700,000 Re-Engineering Australia Forum Ltd 10,000 Slow Food Victoria Inc 50,000 Society of Automotive Engineers – Australasia 30,000 Young Achievement Australia 3,636 Total 2,928,636 138 Appendix 13: (continued) Grow Your Business Organisation Payment $ A Maze ‘N’ Things Pty Ltd 15,000 AgVet Projects Pty Ltd i12,150 c Air Aroma International Pty Ltd 10,625 AMR Hewitts Printpackaging Pty Ltd d 8,750 nAndrew Donald Design Engineers Pty Ltd 8,375 eApposite Holdings Pty Ltd 11,250 p Arnold & Associates (Vic) Pty Ltd 11,245 p Assetic Pty Ltd 4,000 a Australian Rollforming Manufacturers Pty Ltd 11,438 BA & CM Clarke Holdings Pty Ltd 11,250 Banyule City Council 9,000 Bendigo Bank Limited 19,500 Big Bottle Wine Pty Ltd 10,950 Bluestone Upholstery Pty Ltd 10,750 Boddingtons Australia Pty Ltd 10,313 Bouquet Productions Pty Ltd 7,500 Broiler Breeders Australia Pty Ltd 7,750 City of Ballarat 15,000 City of Casey 15,000 City of Greater Bendigo 15,000 City of Greater Dandenong 27,000 City of Knox 22,500 City of Monash 21,000 City of Port Phillip 28,500 City of Yarra 28,500 Clairmont Consulting Pty Ltd 4,000 Clarinox Technologies Pty Ltd 8,500 Conductix Pty Ltd 4,839 CPE Systems Pty Ltd 7,020 Creswick Woollen Mills Pty Ltd 8,000 CVP Australia Pty Ltd 7,500 Davies Craig Pty Ltd 11,500 Deanmac Emergency Services Pty Ltd 8,750 Direct Mail and Marketing Pty Ltd 4,000 Diverse Builders Pty Ltd 4,000 Dollar Sweets Company Pty Ltd 11,500 Earth Systems Pty Ltd 7,500 EDAG Australia Pty Ltd 11,500 Elektron Consulting Pty Ltd 11,500 EYEfi Pty Ltd 11,250 Ferngully Investments Pty Ltd 11,500 Fitweld Engineering Pty Ltd 3,825 Flexdrive Cables Australia Pty Ltd 11,250 Four Trade Only Direct Mail and Print Pty Ltd 11,500 Frankston Business Chamber Inc. 15,000 Fresh Brand Communications Digital Pty Ltd 6,750 Fresh Design Network Pty Ltd 3,900 Gold Peg International Pty Ltd 11,500 139 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 13: (continued) Organisation Payment $ Grampians Homes Pty Ltd 4,000 Grayline Holdings Pty Ltd 11,500 H2 Pty Ltd 4,000 Happy Yappers 7,000 ic Hume City Council 27,000 d Hysport International Pty Ltd 3,600 n i-Wired Australia Pty Ltd e3,750 Iatia Limited p11,500 IFRAp Pty Ltd 11,325 aInfo-Link Australia Pty Ltd 11,500 Inlink Technologies Pty Ltd 7,500 International Medical Recruitment Pty Ltd 11,500 Interpath Pty Ltd 8,375 ITW Australia Pty Ltd 7,500 K & H Surface Technologies Pty Ltd 7,500 Latrobe City Council 10,500 Lethbridge Air Park 4,000 Loral Ipsum (Aust) Pty Ltd 3,750 Macedon Ranges Vignerons Association Inc 4,750 Mancine Cosmetics Pty Ltd 10,625 Mangalore Airport Pty Ltd 11,500 Market Partners Pty Ltd 11,500 Mazi Melbourne Pty Ltd 11,500 Mike Scott & Associates and Kilner Riddle Services Pty Ltd 3,750 Minwa (Aust) Pty Ltd 11,500 Mobilise IT Pty Ltd 11,500 Moonee Valley City Council 28,500 Moreland Enterprise Development Centre Limited 12,000 Mornington Peninsula Shire Council 15,000 Nabdon Pty Ltd 11,500 Nagorcka Joinery Pty Ltd 8,750 Nev’s Cabinets 10,500 Northern Grampians Shire Council 15,000 Northern Melbourne Institute of TAFE 15,000 Nutri-Green Pty Ltd 4,000 Olin Australia Limited 11,500 P.M.G. Engineering Services Pty Ltd 11,288 PA & WJ Dow Pty Ltd 11,500 Palamont Rotor (Australia) Pty Ltd 7,500 Paton’s Macadamia Plantations Pty Ltd 11,500 Peninsula Hot Springs Pty Ltd 7,500 Pinnacle Property Group Pty Ltd 15,000 Property Development Solutions (Vic) Pty Ltd 11,500 Propharma Australia Pty Ltd 11,500 Protege Sport Pty Ltd 10,250 PSW Pty Ltd 7,500 Psychmetrics Pty Ltd 4,000 QSR International Pty Ltd 7,500 R & V Aqualine Industries Pty Ltd 10,475 Redpath Ideal Green Houses Pty Ltd 3,750 140 Appendix 13: (continued) Organisation Payment $ River Redgum Furniture Pty Ltd 3,832 Rosebank Engineering Pty Ltd 11,500 Royal Melbourne Institute of Technology 10,500 Ryan & McNulty Pty Ltd i6,545 c Scandice Pty Ltd d 11,500 nShire of Yarra Ranges 13,500 eShivaya Nominees Pty Ltd 10,750 p South Gippsland Shire Council 10,500 p Southern Shorthaul RailRoad Pty Ltd 11,500 a Southern United Seafood Australia Pty Ltd 7,500 Sportspinal Physiotherapy Consultants Pty Ltd 11,500 Stem Cell Sciences (Australia) Pty Ltd 11,500 Stor Pty Ltd 11,500 Storpak Australia Pty Ltd 4,000 Tag-A-Long Machinery Trailers Pty Ltd 7,500 The Banner Lady Pty Ltd 6,850 Verifi ed Pty Ltd 10,750 Visible Effects Pty Ltd 3,900 Watershed Systems Pty Ltd 4,000 Wellington Shire Council 15,000 Wimmera Health Grain Pty Ltd 6,870 Wines of the King Valley Inc 3,975 Wishdale Pty Ltd 7,288 Worn Gundidj Aboriginal Co-operative Ltd 14,925 Wurrook Superfi ne Prime Pty Ltd 4,000 Wyncorp Pty Ltd 11,500 Total 1,276,553 Opening Doors to Export Plan Organisation APB Distribution Pty Ltd 7,277 Architechtural Glassworks 3,152 Australian Precision Technologies Pty Ltd 7,035 Australian Property Buyers Pty Ltd 7,407 Botani Australia Pty Ltd 6,974 Brobo Group Pty Ltd 7,514 Burn Brite Lights (Vic) Pty Limited 5,510 Complementary Health Seminars Pty Ltd 6,716 Creative Framing.Com Pty Ltd 4,200 Digital Photo Industries Pty Ltd 8,585 E T Performance Products Pty Ltd 4,522 Elite Produce Pty Ltd 5,117 ELR Software Pty Ltd 7,669 Glenmic Pty Ltd 1,450 Hockey Victoria Inc 1,075 IM Medical Limited 8,301 Initiate Action Pty Ltd 6,694 InterDev Pty Ltd 2,889 James & Son (Australia) Pty Ltd 5,535 Jindi Cheese Pty Ltd 9,768 141 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 13: (continued) Organisation Payment $ Kolt Fashion Pty Ltd 10,000 Life Mastery (Aust) Pty Ltd 10,000 Marine Sanitation Pty Ltd 6,380 Mectec Pty Ltd 7,162 ic Orthotics Australia Pty Ltd 3,039 d Perse Pty Ltd 9,436 n S & J Seafood Supply Pty Ltd e6,347 Smarttrans Ltd p9,031 Specialtyp Coatings (Aust) Pty Ltd 10,000 aStrategic Training and Employment Placement Services Pty Ltd 8,483 Systemwide Pty Ltd 9,986 TAIT Enterprises Pty Ltd 8,680 Total Auto Recyclers Pty Ltd 9,597 Triggs Trellis Supplies Pty Ltd 10,000 Ultralift Australia Pty Ltd 9,500 United Customer Management Solutions Pty Ltd 2,853 Vacuum Solutions Australia Pty Ltd 8,300 VET-AG Pathogen Control Pty Ltd 4,587 Vic Vacations Pty Ltd 10,000 Way Funky Company Pty Ltd 10,000 Total 280,771 Skills Statement – My Business My People Organisation Longwarry Food Park Pty Ltd 25,000 Mansfi eld Mt Buller Regional Tourism Association Limited 17,925 T & C Hedges Consulting Pty Ltd 11,625 Total 54,550 Small Business Statement Organisation Ararat Regional Business Association Inc 1,000 Australian Retailers Association 30,000 Ballan and District Chamber of Commerce Inc 1,000 Bass Coast Shire Council 1,200 Baw Baw Shire Council 2,400 Buloke Shire Council 2,000 Business Innovation and Incubation Australia Inc 25,000 City of Greater Bendigo 2,000 City of Warrnambool 3,000 City of Whitehorse 2,000 City of Yarra 3,000 Commerce Ballarat Limited 3,000 Corangamite Shire Council 1,500 Franchise Council of Australia Ltd 20,000 Frankston City Council 1,000 Geelong Export Network 1,000 Glenrowan Vignerons Inc 1,000 Greater Dandenong Chamber of Commerce 1,500 Latrobe City Council 900 142 Appendix 13: (continued) Organisation Payment $ Leader Associated Newspapers Pty Ltd 50,000 Mansfi eld Shire Council 500 Maribyrnong City Council 2,000 Maroondah City Council i1,500 c Melbourne Business Awards Association Inc d 2,000 nMelbourne Citymission Inc 5,000 eMelbourne’s Northern Economic Wedge Inc 30,000 p Melbourne’s West Export Network Inc 1,000 p Melton Shire Council 1,500 a Monash University 6,500 Murrindindi Shire Council 750 Seymour Business and Tourism Inc 1,500 Small Business Mentoring Service Inc 193,094 Strathbogie Shire Council 750 Swan Hill Field Day Association Inc 2,000 University of Ballarat 1,000 Wangaratta Rural City Council 500 Wellington Shire Council 500 Yarra Ranges Regional Marketing Ltd 10,000 Total 412,594 StreetLife Organisation Alpine Shire Council 17,500 Australian Retailers Association 25,000 Borough of Queenscliffe 5,000 Campaspe Shire Council 8,250 CBD Warrnambool Inc 20,000 City of Brimbank 5,000 City of Kingston 6,000 City of Monash 10,000 Moonee Valley City Council 10,500 Mornington Peninsula Shire Council 10,000 Nillumbik Shire Council 5,500 Northern Grampians Shire Council 20,000 Portarlington Business Development Association Inc 2,500 South Gippsland Shire Council 10,000 Strathbogie Shire Council 10,000 Swan Hill Rural City Council 3,750 Sydney Road Brunswick Association Inc 10,000 The Mount Waverley Chamber of Commerce and Industry Inc 11,500 Wellington Shire Council 10,000 Total 200,500

143 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 13: (continued) Support Funding Organisation Payment $ Australian Nano Business Forum Ltd 200,000 Total 200,000 ic Trade Fairs and Missions nd Organisation e Aust-China Group Pty Ltd p112,136 Australia-Israelp Chamber of Commerce Victorian Division Ltd 30,000 aAustralian Automotive Aftermarket Association Ltd 40,000 Australian Industry & Defence Network Inc – Victoria 86,114 Australian International Marine Export Group Ltd 41,000 Australian Teleservices Association Ltd 27,000 Australian Trade Commission 74,997 Confectionery Manufacturers of Australasia Limited 8,500 Department of Primary Industries 21,700 Exhibitions Plus Pty Ltd 26,950 Industry Capability Network (Vic) Ltd 20,000 Intelligent Transport Systems Australia 37,000 International Trade Show Management Pty Ltd 25,300 Marketing and Investment Partners Pty Ltd 25,000 Master Builders Australia Inc 43,502 Mildura Rural City Council 35,000 Paciﬁ c Export Services (Vic) )Pty Ltd 34,000 Paladin Business Systems Pty Ltd 25,000 The Australian Industry Group 55,000 Tooling Australia Inc 20,000 Tourism Victoria 135,000 Victorian Employers Chamber of Commerce and Industry 35,000 Total 958,199

144 Appendix 13: (continued) Regional Development Victoria (RDV) grants RDV provided ﬁ nancial assistance through a broad range of programs aiding economic and community development in regional Victoria. Assistance included funding for economic development and infrastructure projects and regional community events. Assistance is also provided through the Government $502m action plan for c provincial Victoria: Moving Forward: Making Provinciald Victoria the Best Place to Live, Work and Invest.i nCommunity Regional Industry Skills Program (CRISP) eOrganisation Payment $ p Associated Kiln Driers Pty Ltd 30,000 p Biodiesel Producers Limited 54,875 a Blue Lake Milling Pty Ltd 25,000 Chemring Australia Pty Ltd 37,500 Event Studios Australia Pty Ltd 10,000 FMP Group (Australia) Pty Ltd 100,000 K&K Fasteners Pty Ltd 20,000 Pengala Pty Ltd 60,000 R A & J L Murphy 60,000 Rip Curl Pty. Ltd. 50,000 Riverland Oilseeds Pty Ltd 12,000 Total 459,375 Drought Assistance Package – Local Govt Organisation Bass Coast Shire Council 300,000 Baw Baw Shire Council 300,000 Cardinia Shire Council 300,000 City of Casey 300,000 Mornington Peninsula Shire Council 300,000 Nillumbik Shire Council 300,000 Shire of Yarra Ranges 300,000 South Gippsland Shire Council 300,000 Total 2,400,000 Drought Assistance Packages Organisation Rotary Club of Euroa 1,000 Victorian Employers Chamber of Commerce and Industry 1,000,000 Total 1,001,000 Farmers’ Markets Organisation Cardinia Shire Council 15,000 City of Whittlesea 7,500 Foster Community Association Inc 18,216 Golden Plains Shire Council\ 7,500 Moira Shire Council 5,520 Nillumbik Shire Council 7,500 Pearcedale Community Centre Inc. 20,000 Victorian Farmers’ Markets Association Inc. 87,839 Total 169,075 145 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 13: (continued) Gippsland Flood Recovery 2007 Organisation Payment $ Baw Baw Shire Council 300,000 East Gippsland Shire Council 2,000,000 ic Latrobe City Council 135,000 d Lions Village Licola Inc 30,000 n Wellington Shire Council e595,000 Total p3,060,000 aLivingp Regions Living Suburbs Organisation Alpine Shire Council 14,985 Ararat Rural City Council 10,431 Baw Baw Shire Council 7,500 Benalla Rural City 25,000 Campaspe Shire Council 27,918 Cardinia Shire Council 8,218 City of Greater Bendigo 70,000 City of Greater Geelong 70,000 City of Warrnambool 188,000 City of Whittlesea 25,000 Department of Justice 32,500 Department of Transport 500,000 East Gippsland Shire Council 5,250 Enterprize Ship Trust 100,000 Express Promotions Australia Pty Ltd 20,000 Glenrowan Vignerons Inc 14,850 Grampians Community Health Centre Inc 50,000 Horsham Rural City Council 185,000 Industry Capability Network (Vic) Ltd 25,000 Mansﬁ eld Shire Council 15,000 Moira Shire Council 3,250 Murrindindi Shire Council 39,000 Northern Grampians Shire Council 20,000 Shire of Yarra Ranges 43,000 Southern Grampians Shire Council 9,702 Strathbogie Shire Council 25,000 The Herald & Weekly Times Limited 50,000 Tourism Victoria 580,000 Victorian Country Press Association Ltd 160,000 Victorian Transport Association Inc 55,000 Wangaratta Rural City Council 178,014 Wellington Shire Council 20,000 Wimmera Development Association Inc 10,000 Wines of the King Valley Inc 1,252 Wodonga City Council 54,000 Wood Products Victoria Ltd 14,200 Total 2,657,070

146 Appendix 13: (continued) Make it Happen in Provincial Victoria Organisation Payment $ Borough of Queenscliffe 19,400 City of Ballarat i20,000 c City of Greater Bendigo d 10,000 nCity of Greater Geelong 87,500 eColac Otway Shire Council 12,500 p East Gippsland Shire Council 9,868 p Hindmarsh Shire Council 12,500 a Local Government Professionals Inc 9,000 Mansﬁ eld Shire Council 24,607 Mildura Rural City Council 12,500 Mitchell Shire Council 6,564 Moorabool Shire Council 28,500 Mount Alexander Shire Council 12,500 Northern Grampians Shire Council 12,500 Rural City of Wangaratta 12,500 Towong Shire Council 12,500 Wellington Shire Council 12,500 Total 315,439 Next Generation Food Strategy Organisation Australian Specialist Cheesemakers’ Association (ASCA) 22,250 Burra Foods Pty Ltd 40,000 Cheese Expertise Pty Ltd 12,500 Confectionery Manufacturers of Australasia Limited 20,000 Dairy Industry Association of Australia 3,500 East Gippsland Shire Council 20,000 International Dairy Week 20,000 Italian Chamber of Commerce and Industry in Australia – Melbourne Inc 8,000 Kosher Australia Pty Ltd 7,000 Moira Shire Council 20,000 Organic Dairy Farmers of Australia Ltd 4,699 Organic Federation of Australia Ltd 5,000 Smeaton Hackett Events Pty Ltd 12,000 South Gippsland Shire Council 25,318 The Australian Institute of Food Science and Technology Inc 12,500 Tractor & Machinery Association of Australia 70,100 Victorian Health Promotion Foundation 5,000 Victorian Marine Farmers Inc 9,500 Wellington Shire Council 15,000 Total 332,367

147 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 13: (continued) Provincial Victoria Growth Fund Organisation Payment $ Horsham Colour Pty Ltd 5,000 Adams Printers Pty Ltd 20,000 c Alexandra and District Open Gardens Inc 2,250 i Alpine Shire Council 72,025 d Apimondia 2007 Pty Ltd 25,000 n Arapiles Community Theatre Inc e 6,000 Ararat Rural City Council p78,000 Australianp Alpine Valley Agribusiness Forum Inc 10,000 aAustralian Dairy Farmers Ltd 250,000 Australian Eatwell Pty Ltd 12,500 AWMA Pty Ltd 30,000 Backwell IXL Pty Ltd 40,000 Bass Coast Shire Council 364,549 Baw Baw Shire Council 70,500 BBI Biofuels Australia Pty Ltd 14,000 Beaufort Golf Club Inc 5,500 Bemco Australia Pty Ltd 13,200 Benalla Rural City 27,500 Bendigo Chamber of Commerce and Industries 7,500 Bendigo Winegrowers Association Inc 14,309 Berliss Pty Ltd 30,000 Birchip Cropping Group Inc 51,250 Boomaroo Nurseries & Wholesale Supplies Pty Ltd 18,750 Borough of Queenscliffe 12,500 Building Commission 30,000 Buloke Shire Council 68,750 Business Networking for Growth (Central Victoria) Inc 1,105 Campaspe Shire Council 7,500 Central Victorian Agribusiness Forum 13,088 City of Ballarat 25,300 City of Greater Bendigo 67,500 City of Greater Geelong 95,000 City of Greater Shepparton 149,039 City of Warrnambool 141,750 Clyne Farms Pty Ltd 28,500 Colac Otway Shire Council 49,182 Corangamite Shire Council 40,000 Cotton On Clothing Pty Ltd 100,000 CRF (Colac Otway) Pty Ltd 25,000 Dairy Industry Association of Australia Inc - Victorian Division 8,000 Department of Planning and Community Development 770,000 Department of Primary Industries 1,493,000 Department of Sustainability and Environment 2,200,000 Department of Treasury and Finance 150,000 Dunkeld Progress Association Inc 6,000 East Gippsland Shire Council 20,040 Excelior Pty Ltd 250,000

148 Appendix 13: (continued) Organisation Payment $ Gannawarra Shire Council 45,000 Geelong Chamber of Commerce 39,000 Gekko Systems Pty Ltd 25,000 Glenelg Shire Council i37,500 c Golden Plains Shire Council d 87,500 nGoulburn Valley Aero Club Incorporated 7,500 eGrip Youth Services Inc 5,000 p Henley on Lake Wallace Inc 6,000 p Hepburn Shire Council 27,500 a Heyﬁ eld and District Traders Association Inc 5,000 Hindmarsh Shire Council 2,500 Horsham Rural City Council 58,741 Indigo Shire Council 25,829 Industry Capability Network (Vic) Ltd 35,000 Latrobe City Council 122,861 Lions Club of Carisbrook Inc 6,000 Lions Club of Strzelecki Inc 10,000 Local Government Professionals Inc 24,000 Macedon Ranges Shire Council 10,000 Mansﬁ eld Shire Council 7,500 Master Builders Australia Inc 17,500 Maxitrans Australia Pty Ltd 6,000 McGuigan Simeon Wines Ltd 50,000 Mildura Chamber of Commerce Inc 7,500 Mildura Rural City Council 182,500 Mildura Theatre Brewery Pty Ltd 25,000 Minerals Council of Australia - Victorian Division 37,029 Mitchell Shire Council 14,375 Moira Shire Council 79,074 Monash University 30,000 Moorabool Shire Council 35,000 Moyne Shire Council 25,000 Municipal Association of Victoria 525,000 Murray Dairy Inc 9,610 Murrindindi Shire Council 12,500 Mystic Mountains Tourism Inc 2,486 Newgrove (Aust) Pty Ltd 18,320 North East Multicultural Association Inc 7,262 Northern Grampians Shire Council 13,750 Orbost Chamber of Commerce and Industry Inc 6,750 Otvin Pty Ltd 20,000 Planning Institute Australia Inc - Vic Div 120,000 Port Fairy Tourist Association Inc 1,846 Porter Utilities Pty Ltd 10,000 Pure Logistics Transport Pty Ltd 60,000 Pyrenees Shire Council 79,799 Queenscliff Music Festival Inc 33,000 Riviera Triathlon Club Inc 25,120 Robins Foods Pty Ltd 8,500

149 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 13: (continued) Organisation Payment $ Rosedale Chamber of Commerce & Industry Inc 5,000 Rotary Club of Bairnsdale Sunrise Inc 5,000 Rotary Club of Bendigo South Inc 5,000 Rural Workforce Agency, Victoria Ltd 112,000 ic SalesForce Australia Pty Ltd 275,000 d Seymour Agricultural & Pastoral Society Inc 5,000 n Seymour Business and Tourism Inc e 7,500 Seymour Racing Club Inc p20,000 Southp Gippsland Shire Council 41,110 aSpring Creek Community House Inc 2,500 St Arnaud Festival Committee Incorporated 4,000 Stawell Athletic Club Inc 45,000 Strathbogie Shire Council 87,867 Surf Coast Shire 67,500 Swan Hill Rural City Council 34,809 Tarerer-Gunditj Project Association Inc 10,000 The Australian Industry Group 50,000 The Australian Turntable Company Pty Ltd 16,000 The Beechworth Celtic Festival Inc 10,000 The Gippsland Field Days 3,000 The Lions Club of Eildon Inc 15,000 Titeline Drilling Pty Ltd 40,000 Tourism Victoria 4,000,000 Towong Shire Council 15,250 Unilever Australia Ltd 12,500 United Group Rail Pty Ltd 15,000 Vegco Pty Ltd 20,000 Victorian Cycling Inc 15,000 Victorian Employers Chamber of Commerce and Industry 35,000 Victorian Wine Industry Association 75,000 Wangaratta Rural City Council 70,000 Wellington Shire Council 14,800 West Gippsland Dance Festival Inc 5,000 Wimmera Development Association Inc 86,000 Wodonga Chamber of Commerce Inc 7,500 Wodonga City Council 52,500 Women’s National Basketball - Bendigo Inc 80,000 Yarriambiack Shire Council 19,449 Total 14,353,724 Regional Business Investment Ready Program Organisation Strathbogie Shire Council 40,000 Victorian Employers Chamber of Commerce and Industry 450,000 Total 490,000

150 Appendix 13: (continued) Regional Innovation Clusters Program Organisation Payment $ City of Ballarat 107,254 City of Greater Bendigo 130,000 c City of Greater Geelong i75,000 City of Greater Shepparton d 25,000 nCity of Whittlesea 25,000 eEast Gippsland Shire Council 20,000 p GMIC Ltd 23,955 p Indigo Shire Council 50,000 a Industry Capability Network (Vic) Ltd 25,000 Loddon Shire Council 15,000 Mildura Rural City Council 25,000 Moira Shire Council 100,000 Strathbogie Shire Council 25,000 Surf Coast Shire 20,863 Wimmera Development Association Inc 25,000 Total 692,072 Regional Investment Initiative Organisation Border Express Pty Ltd 30,000 Broiler Breeders Australia Pty Ltd 98,000 Buloke Shire Council 13,650 City of Greater Geelong 190,000 City of Greater Shepparton 25,000 City of Warrnambool 16,844 Corangamite Shire Council 3,750 Golden Plains Shire Council 25,000 Integrity Fruit Pty Ltd 38,000 Kiel Industries Pty Ltd 25,000 MacKay Casings Pty Ltd 40,000 Mildura Rural City Council 27,402 Moyne Shire Council 50,000 Parks Victoria 5,000 Perfection Dairies Pty Ltd 18,000 Riverland Oilseed Processors Pty Ltd 20,000 SCS Plastics Pty Ltd 60,000 Surf Coast Shire 9,000 Yackandandah Jam & Preserving Co Pty Ltd 18,000 Total 712,646 Rural Skills Connect Project Organisation Indigo Shire Council 250,000 Mansﬁ eld Shire Council 250,000 Mildura Rural City Council 250,000 Pyrenees Shire Council 250,000 Wangaratta Rural City Council 125,000 Wellington Shire Council 250,000 West Wimmera Shire Council 250,000 Total 1,625,000 151 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 13: (continued) Regional Infrastructure Development Fund (RIDF) Financial Assistance was announced from the Fund to the following organisations: RIDF – Local Roads to Markets c Applicant Project Name RIDF Amount i Approved $ d Campaspe Shire Council Strathallan Road Sealing 259,750 n Indigo Shire Council Kiewa – Bonegilla Road – Stage 1 e 242,300 Indigo Shire Council Kiewa – Bonegillap Road – Stage 2 351,500 Wangarattap Rural City Council Edi-Cheshunt Road Reconstruction 100,000 aGolden Plains Shire Council Safer B-Double Route For Intensive Agriculture (English Road) 184,000 Baw Baw Shire Council Widening and Gravel Resheeting & Sealing of Matheson Road and of Murphy & Bransgrove Roads 60,000 Baw Baw Shire Council Widening, Gravel Resheeting and Bituminous Sealing of Gordon Road 70,000 Baw Baw Shire Council Widening, Resheeting and Sealing of Weebar Road, Drouin 30,000 Wellington Shire Council Bolgers Road Reconstruction 200,000 Colac Otway Shire Council Larpent Road Accessibility Improvement Project 225,000 Mildura Rural City Council Yelta Silo Improved Road Safety Project 200,000 Corangamite Shire Council Corangamite Shire (Knackery Road Upgrade) 106,000 Corangamite Shire Council Curdivale Port Campbell Road Intersection 19,000 Corangamite Shire Council Williams Road Upgrade 57,000 Corangamite Shire Council Blake Street, Skipton – Upgrade 17,000 Moyne Shire Council Allansford-Wangoom Road Upgrade 100,000 Moyne Shire Council Allansford-Wangoom (Drylakes Road) Upgrade 98,000 Pyrenees Shire Council Vinoca Road Upgrade – Avoca 100,000 Southern Grampians Shire Council Cavendish-Coleraine Road (A) Upgrade 102,400 Southern Grampians Shire Council Cavendish-Coleraine Road (B) Upgrade 95,000 RIDF – Local Ports Moyne Shire Council Port Fairy 1,525,500 Gippsland Ports Committee of Management Port Welshpool & Port Albert 1,008,000 Gippsland Ports Committee of Management Gippsland Lakes 1,641,800 RIDF – Regional Arts Infrastructure Greater Shepparton City Council Eastbank Centre Improvements 300,000 Glenelg Shire Council Upgrade to Various Arts Facilities in the Glenelg Shire 570,000 RIDF – Regional Aviation Northern Grampians Shire Council Stawell Airport Upgrade 950,000 Latrobe City Council Latrobe Regional Airport – Major Airpark Development 492,000 East Gippsland Shire Council Mallacoota Airport Utilisation Enhancement 791,000 RIDF – Water For Industry Central Highlands Region Water Corporation Central Highlands Water – McCain Water Minimisation Project 635,474 Boomaroo Nurseries Pty Ltd Boomaroo Nursery Non-Potable Water Supply 325,000 GBP Exports Pty Ltd GBP Exports Non-Potable Water Supply 172,800

152 Appendix 13: (continued) RIDF – Rural Showgrounds Applicant Project Name RIDF Amount Approved $ The Gippsland Field Days Limited Lardner Park Exhibition Centre 500,000 c Moira Shire Council Numurkah Showgrounds Redevelopment i 350,000 Victorian Agricultural Show Ltd. Rural Showgroundsd and Field Days Renewal Fund – en Minor Capital Works Program 500,000 p RIDF – Energy Powercor Australia On-Farm Energy Upgrade Grant – p Western Victoria 1,800,000 a SP AusNet On-Farm Energy Upgrade – Eastern Victoria 1,800,000 Glenelg Shire Council Heywood Industrial Corridor – Power Upgrade Project 300,000 RIDF – Regional Industry Investment Program* Huyck Australia Huyck Geelong (see note) Satyam Computer Services Ltd. Satyam (Deakin University Campus at Geelong) (see note) Gekko Systems Pty Ltd. Gekko Systems New Investment Project (see note) * Details of these investment grants have not been disclosed as they are deemed commercial in confi dence. RIDF – Industrial Estates Gannawarra Shire Council Tate Drive Industrial Estate Kerang 166,895 Moorabool Shire Council Hillside Industrial Estate Expansion, Bacchus Marsh 1,014,007 Central Goldfi elds Shire Council Goldfi elds Export Cluster 2,182,840 RIDF – Other (Education, Tourism, ICT) Deakin University Geelong Technology Precinct Proof of Concept Facility 6,000,000 Department of Sustainability and Environment, Information Business Technology Positioning Regional Victoria’s Future Prosperity (GPS Net) 3,420,000 Parks Victoria Wonthaggi State Coal Mine Upgrade 1,500,000

153 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 13: (continued) Small Towns Development Fund (A sub-program of the Regional Infrastructure Development Fund) Financial assistance of $8.6m was approved from the Fund to the following Councils: ic Council Project Name Amount Approved $ d Alpine Shire Council Harrietville Streetscape Revitalisation 20,000 n Alpine Shire Council Tawonga Streetscape e 40,000 Alpine Shire Council Wandiligong Alpinep Park Revitalisation 73,300 Araratp Rural City Council Ararat Streetscape Stage 2 166,000 aBallarat City Council Ballarat Skipton Rail Trail Upgrade Stage 2 250,000 Bass Coast Shire Council Bass Coast Rail Trail Development 100,000 Baw Baw Shire Council Walhalla Long Tunnel Mine Access 160,000 Baw Baw Shire Council Yarragon Train Exhibit Upgrade 20,000 Benalla Rural City Council Eastern Gateway to Benalla 250,000 Buloke Shire Council Charlton Water Use 24,421 Central Goldfi elds Shire Council Maryborough Retail Precinct Revitalisation 250,000 Central Goldfi elds Shire Council Dunolly Recreation Reserve Upgrade 25,200 Corangamite Shire Council Camperdown Theatre Royal Redevelopment 150,000 East Gippsland Shire Council East Bairnsdale Community Precinct 40,000 East Gippsland Shire Council Mallacoota Pathways 175,680 Gannawarra Shire Council Kerang Town Entry 153,099 Gannawarra Shire Council Murrabit Hall Precinct Development 132,310 Golden Plains Shire Council Scarsdale Historic Hall Upgrade 46,667 Golden Plains Shire Council Bannockburn Community & Cultural Hub Phase 1 250,000 Golden Plains Shire Council Teesdale Turtle Bend Meeting Place 72,500 Greater Geelong City Council Bellarine Rail Trail Improvements 150,000 Hepburn Shire Council Creswick Visitor Information Centre Precinct Development 212,000 Hepburn Shire Council Clydesdale Hall Upgrade 20,000 Hindmarsh Shire Council Jeparit Caravan Park 33,000 Hindmarsh Shire Council High Street, Dimboola Streetscape 75,110 Hindmarsh Shire Council Rainbow Heritage Streetscape 50,000 Horsham Rural City Council Wail Arboretum Education, Recreation and Tourism Facility Upgrade 52,709 Horsham Rural City Council Natimuk Urban Streetscape 50,000 Horsham Rural City Council Haven Hall Entry and Kitchen Improvements 31,174 Horsham Rural City Council Laharum Community Link Centre 101,913 Indigo Shire Council Chiltern Historic Commercial Precinct 200,000 Latrobe City Council Yinnar Historical & Township Entry Signage 24,000 Macedon Ranges Shire Council Riddells Creek Recycled Water Use 250,000 Macedon Ranges Shire Council Newham Mechanics Institute Hall and Precinct Conservation and Renovation 250,000 Mansfi eld Shire Council Bonnie Doon Township Enhancement 166,000 Mansfi eld Shire Council Merrijig Hall Upgrade 220,000 Mansfi eld Shire Council Tolmie Hall Refurbishment 120,000 Mansfi eld Shire Council Gaffney’s Creek Community Facility 85,000 Mansfi eld Shire Council Gough’s Bay Picnic Point and Pathways 120,000 Mildura Rural City Council Merbein Town Entrance 26,500 Mitchell Shire Council Seymour Chittick Park Redevelopment 232,266 154 Appendix 13: (continued) Council Project Name Amount Approved $ Mitchell Shire Council Broadford Hall Upgrade 75,000 Moira Shire Council Moira Small Towns Revitalisation 100,000 Moorabool Shire Council Bungaree Hall Upgrade i 31,920 c Moorabool Shire Council Korweinguboorad Community Facility Upgrade 20,000 nMoorabool Shire Council Greendale Rotunda and Picnic Facilities 46,000 eMoorabool Shire Council Caledonian Park Development, Ballan 50,000 p Moorabool Shire Council Myrniong Rotunda and Outdoor Space Upgrade 50,000 p Mount Alexander Shire Council Castlemaine Botanical Gardens Enhancement 250,000 a Moyne Shire Council Macarthur Quality Water Supply 250,000 Murrindindi Shire Council Kinglake Services Centre Precinct Upgrade 50,000 Murrindindi Shire Council Highlands Community Hall and Precinct Upgrade 33,775 Murrindindi Shire Council Kinglake West Memorial Hall Upgrade 54,600 Murrindindi Shire Council Alexandra Rotary Park Enhancement 58,065 Murrindindi Shire Council Yea Recreation Reserve Upgrade Stage 2 47,500 Northern Grampians Shire Council Halls Gap Water Harvesting and Reuse Initiative 250,000 Northern Grampians Shire Council Stawell Gift Hall of Fame Upgrade 250,000 Pyrenees Shire Council Beaufort Lake & Recreation Reserve Water Harvesting 66,000 Pyrenees Shire Council Landsborough/Navarre Reverse Osmosis Desalination Plant 500,000 Southern Grampians Shire Council Hamilton Visitor Information Centre Upgrade 60,000 Swan Hill Rural City Council Robinvale Irrigation Upgrade 226,950 Swan Hill Rural City Council Manangatang Wattle Street Improvements 50,533 Swan Hill Rural City Council Lake Boga Foreshore Development 250,000 Towong Shire Council Walwa Community Wastewater Treatment and Re-use 250,000 Towong Shire Council Eskdale Water Supply 250,000 Wangaratta Rural City Council Cheshunt Hall Refurbishment 55,500 Wangaratta Rural City Council Glenrowan to Hamilton Park Pathway 100,000 Wellington Shire Council Port Albert Gippsland Regional Maritime Museum Extension 99,500 Wellington Shire Council Sale Gardens for a Changing Environment 35,000 West Wimmera Shire Council Kaniva Regional Wetlands Gateway 16,666 West Wimmera Shire Council Edenhope Foreshore Walking Track 75,680 Yarriambiack Shire Council Warracknabeal Leisure Centre Rain Water Harvesting, Storage and Use 47,018 Yarriambiack Shire Council Warracknabeal Showgrounds Redevelopment Stage 2 53,769

155 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 13: (continued) Policy grants Grants totalling $3.3m were made from the Policy Output and are detailed below: Enhancing Sustainability in Investments ic Organisation Payment $ d Blue Circle Southern Cement Ltd 38,402 n Cowes Eco Retreat Pty Ltd e4,996 Drapac Management Ltd p100,000 Intervetp Australia Pty Ltd 19,425 aLongwarry Food Park Pty Ltd 84,750 MECU Limited 43,800 Murray Goulburn Co-operative Co Ltd 165,000 Park Avenue Pty Ltd 50,000 Unimin Australia Limited 19,955 Total 487,926 Enhancing Greenhouse Considerations in New Investment Organisation GPT Funds Management Ltd 36,201 Nestle Australia Ltd 100,000 Total 136,201 Provision of Import Replacement Services Organisation Industry Capability Network (Vic) Ltd 2,685,408 Industrial Relations grants Grants totalling $15.5m were made for Industrial Relations and the recipient companies and organisations are listed below. Agenda for New Manufacturing – Partners at Work Organisation The Master Grocers’ Association of Victoria Ltd 7,880 Worklife Association Inc 3,772 Total 11,652 Employment Initiatives Organisation Aged Community Care Victoria 21,909 Apprentices-Trainees-Employment Ltd 31,066 ARPA Over 50’s Association Ltd 37,500 Australian Education Industry Centre 36,750 Australian Manufacturing Technology Institute Ltd 51,300 Australian Vietnamese Women’s Welfare Association Inc. 96,626 Automotive Training Australia Ltd 51,004 Ballarat City Council 7,200 Banyule City Council 34,861 Barwon Health 64,350

156 Appendix 13: (continued) Organisation Payment $ Bass Coast Shire Council 2,400 Bendigo Access Employment Inc. 57,375 Berry Street Victoria Inc 54,000 Boating Industry Association of Victoria Ltd. i 34,568 c Broadmeadows Employment Project Inc d 163,255 nBrotherhood Of St Laurence 210,787 eCampaspe Shire Council 1,800 p Casey City Council 2,400 p Central Gippsland Institute of TAFE 168,301 a Central Goldﬁ elds Shire Council 1,200 Central Highlands Group Training Inc. 154,384 City of Ballarat 62,996 City of Greater Bendigo 40,500 City of Greater Geelong 64,094 City of Greater Shepparton 50,250 City of Kingston 2,400 City of Warrnambool 20,250 City of Whitehorse 9,000 City of Whittlesea 3,150 Colac Adult and Community Education Inc 125,200 Composites Australia Inc. 49,795 CPA Australia 41,334 CREATE (Geelong) Inc 102,287 Cutting Edge Youth Services-Unitingcare 18,667 Dairy Australia Limited 10,560 Darebin City Council 6,300 Department of Education and Early Childhood Development 672,300 Department of Human Services 692,999 Department of Justice 346,500 Department of Planning and Community Development 229,133 Department of Premier and Cabinet 13,500 Department of Primary Industries 40,909 Department of Sustainability and Environment 202,500 Department of Treasury and Finance 31,500 Eastern Victorian Group Training Inc. 180,185 Education Centre Gippsland Ltd 90,057 Electrical Trades Union of Australia 270,016 Future Employment Opportunities Inc. 56,000 Ganbina Koori Economic Employment Training Agency Inc. 130,474 Geelong Ethnic Communities Council Inc. 160,677 Gippsland Group Training 17,500 Gippsland Multicultural Services Inc. 102,980 Glen Eira City Council 1,200 Goldﬁ elds Employment and Learning Centre Inc 152,466 Goulburn Ovens Institute of TAFE 16,000 Goulburn Valley Community Health Service 3,980 Hobsons Bay City Council 145,200 Hume City Council 1,200 Jesuit Social Services Ltd 298,400

157 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 13: (continued) Organisation Payment $ Jewish Care (Victoria) Inc 46,925 Jobs a New Approach Ballarat Inc. 48,472 Kingston City Council 1,800 KYM Employment Services Inc 187,131 ic Lady Gowrie Child Centre (Melbourne) Inc 92,000 d Latrobe City Council 178,571 n Leisure Networks Association Inc e 29,196 Link Employment & Training Inc. p 141,515 MEGTp (Australia) Ltd 330,200 aMelbourne Citymission Inc 550,785 Mentor Professional Pty Ltd 388,781 Mildura Rural City Council 19,005 Mission Australia 304,878 Mitchell Shire Council 1,200 Moira Shire Council 1,200 Moorabool Shire Council 2,400 Mornington Peninsula Shire Council 138,980 MOSEDG Inc 167,022 New Hope Foundation Inc, The 40,000 New Hope Migrant and Refugee Centre Inc 119,168 Odyssey House Victoria 147,450 Peninsula Training & Employment Program Inc 116,229 Public Record Ofﬁ ce Victoria 108,600 Rotary Club of Bendigo Inc. 65,065 Russian Ethnic Representative Council of Vic Inc 166,750 Serbian Welfare Association of Victoria Inc 47,426 South Eastern Region Migrant Resource Centre Inc. 220,257 Southern Grampians Shire Council 2,400 Spectrum Migrant Resource Centre Inc 128,400 Springvale Indo-Chinese Mutual Assistance Association Inc 26,400 Stonnington City Council 1,200 Sunraysia and Murray Group Training Ltd 58,800 Superior Staff Pty Ltd 79,765 Surf Coast Shire Council 2,400 Swan Hill Rural City Council 59,500 Sydney Rehabilitation Services Pty Ltd 90,188 The Australian Industry Group 115,700 The Centre for Continuing Education Inc 93,420 The Federation Of Chinese Associations (Vic) Inc 47,775 The Replay Group Pty Ltd 62,775 Transport Workers Union of Australia (Victorian Branch) 298,930 Try Youth and Community Services Inc 132,514 Victoria University 54,194 Victorian Arabic Social Services Inc. 31,625 Victorian Automotive Industry Training Board Inc 72,000 Victorian Cooperative on Childrens Services for Ethnic Groups 135,000 Victorian Group Training Company Ltd. 126,470 Victorian Trades Hall Council 46,161

158 Appendix 13: (continued) Organisation Payment $ VLGA Inc. 109,250 Wangaratta Rural City Council 41,200 Warrnambool City Council 2,400 Westvic Workforce Inc i46,100 c White Lion Inc d 106,890 nWhitehorse City Council 6,750 eWhittlesea City Council 1,350 p Wimmera Development Association Inc 20,250 p Wise Employment Ltd 171,701 a Wodonga City Council 50,250 Workco Ltd 183,965 YWCA Victoria 238,385 Total 12,050,609 Returning to Earning Organisation Adult Multicultural Education Services 2,105,000 Total 2,105,000 Events and Sponsorships Organisation Monash University 10,000 Total 10,000 Support Funding Organisation Job Watch Inc 1,352,000 Total 1,352,000

159 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 13: (continued) Science, Technology and Innovation grants Grants totalling $100.1m under the Department’s Science, Technology and Innovation programs are listed below. c 2007 Victoria Fellowship i Recipient Payment $ nd Coleman, Bryony e18,000 Connal, Luke Andrew p18,000 Craig,p Simon 17,816 aJama, Hussein 18,000 Lee, Erinna 12,747 Walter, Andrew 18,000 Total 102,563 2007 Victoria Prize Recipient Colin Masters Pty Ltd 50,000 Total 50,000 Biomedical Research – Operational Infrastructure Support Program Organisation Australian Neuroscience Society Inc 10,000 Australian Stem Cell Centre Ltd 20,000 Baker Heart Research Institute 2,321,860 Bernard O’Brien Institute of Microsurgery 254,716 Bionic Ear Institute 433,292 Brain Research Institute Pty Ltd 235,972 Centre for Eye Research Australia Ltd 395,596 CSIRO 5,000 Howard Florey Institute 1,837,396 IXC Australia Limited 12,500 Ludwig Institute for Cancer Research 1,473,428 MacFarlane Burnet Institute for Medical Research and Public Health Ltd 3,786,176 Mental Health Research Institute 607,848 Monash University 1,603,872 Murdoch Childrens Research Institute 2,381,756 National Stroke Research Institute 366,024 Peter MacCallum Cancer Institute 15,000 Prince Henry’s Institute of Medical Research 890,972 St Vincent’s Institute of Medical Research 1,379,420 The Walter and Eliza Hall Institute of Medical Research 7,771,672 Total 25,802,500

160 Appendix 13: (continued) Biotechnology Organisation Payment $ AusBiotech Ltd 380,000 Australian Nano Business Forum Ltd i 20,000 c Australian Research Centre for Complementary & Alternative Medicine 156,000 Bangalore Bio 2008 d 20,399 enBio21 Australia Ltd 71,000 p BioMelbourne Network Inc 100,000 Cooperative Research Centre for Advanced Composite Structures Limited 35,000 ap Department of Primary Industries 216,500 Howard Florey Institute 15,000 IXC Australia Limited 25,000 Monash University 1,095,000 Peter MacCallum Cancer Institute 107,468 Research Australia Ltd 30,000 RMIT University 176,130 The Meeting Planners Pty Ltd 3,000 University of Melbourne 110,800 Young Achievement Australia 4,000 Total 2,565,297 CRC Support Program Organisation AFAC Limited 20,000 CO2CRC Technologies Pty Ltd 20,000 Cooperative Research Centre for Spatial Information 20,000 Innovative Dairy Products Pty Ltd 150,000 Total 210,000 Healthy Futures – The Victorian Life Sciences Statement Organisation Florey Neuroscience Institutes of Victoria 10,000,000 The Walter and Eliza Hall Institute of Medical Research 5,000,000 University of Melbourne 5,500,000 Total 20,500,000 NCRIS Organisation Monash University 15,000,000 University of Melbourne 2,650,000 Total 17,650,000 Science & Technology R&D Fund Organisation Neurosciences Victoria Ltd 39,565 Pulmosonix Pty Ltd 104,142 Total 143,707

161 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 13: (continued) Skills and Awareness Recipient Payment $ Advance Global Australian Professionals 6,026 Australian Academy of Technological Sciences and Engineering 26,375 c Australian Institute of Policy and Science 17,750 i Australian Institute of Political Science 2,000 d Australian Science Communicators Inc 15,000 n CSIRO e55,250 General Sir John Monash Foundation p 100,000 La Trobep University 5,625 aMenz, Garry 13,815 Science Teachers Association of Vic 12,500 Sciencenow! Inc 17,000 Smart Geelong Network Ltd 17,000 University of Melbourne 1,200 Total 289,541 STI Awareness Grant from DPC Recipient Hoare, Hilary 8,000 Kelly, Priscilla 8,000 Wakim, Linda 8,000 Wei, Benjamin 16,000 Total 40,000 STI Initiative Organisation Anti Cancer Council of Victoria 900,000 Australian Genome Research Facility Ltd 985,000 Australian Nano Business Forum Ltd 100,000 Barwon Health 600,000 Bayside Health 702,335 Centre for Eye Research Australia Ltd 412,000 CRC for Advanced Automotive Technology Ltd 200,000 CSL Limited 857,676 DMTC Limited 1,000,000 Food Science Australia 602,100 Ford Motor Company of Australia Ltd 700,000 Monash University 11,382,000 Nanotechnology Victoria Ltd 1,725,077 Nanovic Commercial Pty Ltd 250,000 Neurosciences Victoria Ltd 250,000 Polymers CRC Ltd 300,000 Small Technologies Cluster Ltd 2,052,500 The Australian Tissue Engineering Centre Ltd 1,300,000 The Victorian Centre for Medical Bionics 1,946,000 Transport Accident Commission (TAC) 570,300 University of Melbourne 2,290,448 Victorian Centre for Advanced Materials Manufacturing 814,023 Total 29,939,459

162 Appendix 13: (continued) Support Funding Organisation Payment $ Victorian Endowment for Science, Knowledge & Innovation Ltd 433,000 Total i433,000 c nSynchrotron d eRecipient p City of Monash 35,000 p Kempson, Ivan 10,000 a La Trobe University 10,000 Total 55,000 Vic Start Program Organisation Australian Aerospace and Defence Innovations Ltd 260,000 Australian Institute for Commercialisation Ltd 820,000 Food Science Australia 180,000 IXC Australia Limited 530,000 Medicines Development Limited 30,050 MRCF Pty Ltd 300,000 Total 2,120,050 Victorian Endowment for Science, Knowledge & Innovation Ltd Organisation Victorian Endowment for Science, Knowledge & Innovation Ltd 175,000 Total 175,000

163 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 13: (continued) Multimedia Victoria Grants totalling $66.6m under the Department’s Multimedia Victoria programs are listed below. Connecting Victoria ic Organisation Payment $ d Barwon Health 500,000 n Total pe500,000 Victorianp Life Sciences Computation Initiative Grant aOrganisation The University of Melbourne 50,000,000 Total 50,000,000 Broadband Innovation Fund Organisation Department of Education & Early Childhood Development 2,050,000 Department of Premier And Cabinet 153,000 Department of Primary Industries 513,000 LMHA Network Ltd 221,239 South West Alliance of Rural Health 89,000 Total 3,026,239 NICTA Victorian Research Laboratory Organisation National ICT Australia Limited 4,000,000 Total 4,000,000 eResearch (ILS) Projects Organisation Monash University 1,475,000 The University of Melbourne 1,475,000 Total 2,950,000 TAFE ICT IBL Development Organisation Bendigo Regional Institute of TAFE – Bendigo 2,925 Box Hill Institute of TAFE 15,000 Chisholm Institute 3,000 Gordon Institute of TAFE – Geelong 15,000 Goulburn Ovens Institute of TAFE 2,927 Northern Melbourne Institute of TAFE – Preston 2,779 Swinburne University of Technology 3,000 University of Ballarat 3,000 Victoria University 2,988 Wodonga Institute of TAFE 3,000 Total 53,619

164 Appendix 13: (continued) ICT Careers Awareness Organisation Payment $ Australian Information Industry Assoc Ltd 25,000 The Victorian Information Technology Teachers Association i 50,000 c Total d 75,000 nICT Industry Skills Scholarships Pilot peOrganisation p Deakin University 3,000 a The University of Melbourne 4,418 University of Ballarat 5,497 Victoria University 24,000 Total 36,915 ICT Business Assistance Program Organisation AXA Technology Services Australia Pty Ltd 60,000 Deakin University 1,000,000 IR Gurus Interactive Pty Ltd 112,442 Total 1,172,442 Trade Fairs – grants Organisation 360Desktop Pty Ltd 10,000 Acheron Design Pty Ltd 2,500 Act3 Animation Pty Ltd 2,500 Advanced Publishing Systems Pty Ltd 10,608 AFC Group Pty Ltd 7,500 Alfatron Pty Ltd 2,500 Alliance Interactive Pty Ltd 2,500 APCS (Australian Project & Consulting Services) 2,500 Applicad Australia 20,848 Aruspex Pty Ltd 8,000 Ausphotonics Pty Ltd 2,500 Austra Connex Pty Ltd 5,000 Automated Applications Pty Ltd 2,500 Axiom Business Systems Pty Ltd 4,863 Benaral Pty Ltd 2,500 Big Ant Studios Pty Ltd 10,500 Big Pipe Media Pty Ltd 5,000 Bionic Corporation Pty Ltd 2,500 Biz Catalyst Pty Ltd 5,000 Blended Learning International 2,500 BNM Productions Pty Ltd 2,500 Brag Rat Entertainment Pty Ltd 4,000 Business Intelligence Technologies Pty Ltd 5,000 Business Now Asia-Paciﬁ c Pty Ltd 4,000 Cattle Puppy Productions 2,500 Challenger Momentum 2,500 Charlwood Design Pty Ltd 2,500 165 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 13: (continued) Organisation Payment $ Clarinox Technologies Pty Ltd 6,500 Clearhouse Technology Pty Ltd 5,000 Com Group Australia Pty Ltd 8,000 Commsforce Pty Ltd 2,500 ic Coolrock Software Pty Ltd 2,500 d CPT Global Limited 26,000 n Cracked Pepper Communications Pty Ltd e 2,500 DA Information Services p6,220 Darklyp Digital Pty Ltd 2,500 aDatanet Victoria Pty Ltd 4,647 Dataworks Australia P/L 2,500 Defence Communications Industry 6,500 Desktop EDA Pty Ltd 6,273 Digital Education Services 2,500 Dindima Group Pty Ltd 2,500 Dynamic Hearing Pty Ltd 2,500 EB2B.Com Pty Ltd 2,500 Econ-KM 10,000 Edsoft Pty Ltd 2,500 Endgames Studios Pty Ltd 8,054 Enex Pty Ltd 2,500 Environmental Monitoring Solutions Pty Ltd 2,500 Etech Group Pty Ltd 14,500 Eureka Teleconferencing Pty Ltd 6,002 Everyday Interactive Networks 11,232 E-Vis Pty Ltd 4,446 Experimenta Media Arts Inc Pty Ltd 2,500 Express Teleconferencing Pty Ltd 2,500 Extel Communications Pty Ltd 6,946 Fairbanks Environmental Pty Ltd 2,500 Ferntree Asia Paciﬁ c Pty Ltd 1,153 Firemint/Ndware Pty Ltd 11,483 Folios International Pty Ltd 5,000 Form Australia Pty Ltd 9,000 Fortunas Publishing Pty Ltd 5,000 Fractal Pty Ltd 2,500 Fred Bergman Healthcare 10,500 Geekit Group Pty Ltd 5,000 Global Xchange Pty Ltd 5,000 Goal Training And Development 2,500 Gould Group Pty Ltd 4,000 Goya Pty Ltd 7,077 GPSat Systems Australia Pty Ltd 2,500 Guilty Comix 2,182 Haliplex Pty Ltd 4,000 Hardcat Pty Ltd 6,036 Hawkbridge 2,500 Health 1St Pty Ltd 2,500 Hi-Voltage Corporations Pty Ltd 2,500 Human Edge Software Corp Pty Ltd 2,500

166 Appendix 13: (continued) Organisation Payment $ I.P.S.G. International Product Solution Group 10,000 I4 Talent 2,500 IComply Pty Ltd 7,624 iMediate Consulting Pty Ltd i2,500 c Inferencecommunications d 2,500 nInﬁ nite Interactive Pty Ltd 5,000 eInlink Technologies Pty Ltd 8,000 p Inzenius Pty Ltd 4,000 p Iron Monkey Studios Pty Ltd 2,500 a Itel International Pty Ltd 5,000 KDR Creative Software Pty Ltd 9,688 Kingﬁ sher International Pty Ltd 4,000 Klique Solutions P/L 2,500 Komodo Cms Pty Ltd 8,000 Lanyard Perfection 10,000 Lessons For Life International Pty Ltd 11,566 Linus Information Security Solutions 10,000 Magian Design Studio Pty Ltd 24,000 Maxiworks Pty Ltd 5,000 Mcomms Design Pty Ltd 2,500 Medi+World International 3,043 Microguild Pty Ltd 6,511 Microlistics (Austr) Pty Ltd -Grant 2,500 Mid-Comp International Pty Ltd 2,500 Mini Studios Pty Ltd 5,000 Money 101 - Money For Life Pty Ltd 4,000 Morpheum 5,000 Mostyle Pty Ltd 2,500 Multimedia On Wheels Pty Ltd 2,500 Musicmate Pty Ltd 7,500 My Work Place Solutions Pty Ltd 2,500 Neoproducts Pty Ltd 2,500 Netagi Pty Ltd 10,000 Netralia Pty Ltd 2,500 Ng Technology Pty Ltd 6,905 NGA.Net Pty Ltd 2,500 OHS Centre 2,500 Omni Plus Pty Ltd 4,000 On Demand It Solutions Pty Ltd 2,500 Open Windows Australia Pty Ltd 2,500 Optotech Pty Ltd 14,500 Pace Marketing Pty Ltd 2,500 Phillipskba Ebie Pty Ltd 7,500 Polaris Communications Pty Ltd 2,500 Portable Content 10,500 Powercad Software Pty Ltd 2,500 Protea Textware 11,556 R & D Trading Trust 2,500 Real Time Online Pty Ltd 2,500 Rebecca Productions Pty Ltd 5,000

167 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 13: (continued) Organisation Payment $ Red Centre Software Pty Ltd 7,079 Redstart Pty Ltd 5,000 Screen Services 2,500 Senko Advanced Components (Australia) Pty Ltd 12,283 ic SFI International 2,500 d Sharp Tack Productions Pty Ltd 5,000 n Short Attention Pty Ltd e4,000 Simple Net 5,000 Smart Trans Ltd p2,500 Soft pBusiness Services Pty Ltd 7,500 aSoftware Escrow & Copyright Agents Pty Ltd 2,500 Solution E Aust Pty Ltd 2,500 Sound4Yourspace P/L 2,500 Sourcedynamix Asia Pacifi c Pty Ltd 5,000 Space-Time Research Pty Ltd 12,500 Spangaro Systems Pty Ltd 2,500 Spider Eye Studios Pty Ltd 2,500 Sprocket Technologies Pty Ltd 9,000 Stop Motion Pro Pty Ltd 19,119 Studio Moshi 7,500 Sync Me Pty Ltd 2,500 The Adweb Agency Pty Ltd 10,000 The Tribe 2,500 Torian 10,500 Torus Games Pty Ltd 13,791 Total Tel International Pty Ltd 12,000 TT Partners Pty Ltd 5,800 Twofold Media Pty Ltd 4,000 Umbrella Entertainment 5,000 Universal Trustees Pty Ltd 6,500 Vastpark Pty Ltd 10,500 Webcasting Pty Ltd 2,500 Worksol Holdings P/L 2,500 World Wide Entertainment 8,000 Xelon Entertainment Pty Ltd 2,500 Yellowfi n International Pty Ltd 10,000 Ziptales 4,000 Zoomorphix Systems 2,500 Total 908,034 Priority Industry Programs Organisation CA (Pacifi c) Pty Ltd 120,000 University of Ballarat 500,000 Total 620,000 Game Plan Implementation Organisation ACMI – Australian Centre for The Moving Image 3,500 Total 3,500

168 Appendix 13: (continued) Motion Capture Studio Organisation Payment $ Deakin University 49,598 Total i49,598 c ICT Industry Associations d enOrganisation p AIMIA 140,000 p Australian Information Industry Assoc Ltd 150,000 a Total 290,000 ICT Industry Linkages Organisation City of Greater Geelong 50,000 Enterprise Java Victoria Inc 20,000 MobilityVic (Incorporating Mobility Mesh-Mobile Data Cluster) 30,000 RFID Association Australia 20,000 Victorian ICT for Women Network Inc 36,500 Victorian ICT for Women Network Inc 36,500 Total 193,000 Innovative Market Solutions Organisation Municipal Association of Victoria (MAV) 2,100,000 Total 2,100,000 Effective Use Project Organisation Barwon Health 500,000 Life Saving Victoria 5,000 The University of Melbourne 75,000 Total 580,000

169 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 14: Legislation administered – Financial Year ending 30 June 2008 Innovation: Skills and Workforce Participation: ic Baker Medical Research Institute Act 1980 Australian Catholic University (Victoria) Act 1991 d Prince Henry’s Institute of Medical Research Act 1988 Deakin University (Victoria College) Act 1991 n Industry and Trade: Deakin University (Warrnambool) Act 1990 e Agent-General and Commissioners for Victoria Act 2007pDeakin University Act 1974 Aerodromep Landing Fees Act 2003 La Trobe University(Bendigo and Wodonga) Act 1990 a La Trobe University Act 1964 Albury-Wodonga Agreement (Repeal) Act 2003 Australian Airlines (Intrastate Services) Act 1990 Marcus Oldham College Act 1995 Bread Industry Act 1959 Melbourne College of Advanced Education (Amalgamation) Act 1988 City of Greater Geelong Act 1993 (Part 5) Melbourne College of Divinity Act 1910 Civil Aviation (Carrier’s Liability) Act 1961 Melbourne University (Hawthorn) Act 1991 Victorian Industry Participation Policy Act 2003 Melbourne University (VCAH) Act 1992 Film Act 2001 (Part 2) (Parts 1,4,5 & 6 jointly with Arts) Melbourne University (VCAH) Act 1997 Regional and Rural Development Melbourne University Act 1958 Regional Development Victoria Act 2002 Melbourne University (Victorian College of the Arts) Regional Infrastructure Development Fund Act 1999 Act 2006 Small Business: Monash University Act 1958 Anzac Day Act 1958 (Except Sections 3,4 and 4A) Monash University (Chisholm and Gippsland) Act 1990 Public Holidays Act 1993 Monash University (Pharmacy College) Act 1992 Retail Leases Act 2003 Royal Melbourne Institute of Technology Act 1992 Shop Trading Reform Act 1996 Swinburne University of Technology Act 1992 Summer Time Act 1972 University of Ballarat Act 1993 Small Business Commissioner Act 2003 Victoria University of Technology Act 1990 Industrial Relations: Victorian College of Agriculture and Horticulture Act 1982 BLF (De-recognition) Act 1985 Education and Training Reform Act 2006 (Part thereof. Child Employment Act 2003 Jointly with Minister for Education) Commonwealth Powers (Industrial Relations) Act 1996 Tourism and Major Events: Construction Industry Long Service Leave Act 1997 Australian Grands Prix Act 1994 Federal Awards (Uniform Systems) Act 2003 Chinatown Historic Precinct Act 1984 (Jointly Labour and Industry Act 1958 administered with the Minister for Planning) Long Service Leave Act 1992 Emerald Tourist Railway Act 1977 Outworkers (Improved Protection) Act 2003 Melbourne Convention and Exhibition Trust Act 1996 Owner Drivers and Forestry Contractors Act 2005 Port Bellarine Tourist Resort Act 1981 Public Sector Employment (Award Entitlements) Act Tourism Victoria Act 1992 2006 Major Projects Victoria Trade Unions Act 1958 Commonwealth Games Administrative Arrangements Workplace Rights Advocate Act 2005 Act 2001 Crown Land (Reserves) Act 1978 Docklands Act 1991 Project Development and Construction Management Act 1994 170 Appendix 15: Whistleblowers

The Whistleblowers Protection Act 2001 encourages The Department’s Protected Disclosure Offi cers c and assists people in making disclosures of improper are: i conduct by public offi cers and public bodies. Thed Act Lee Watts provides protection to people who make disclosures in n Level 3, 2 Treasury Place accordance with the Act and establishes a system for e East Melbourne Vic 3002 the matters disclosed to be investigated and rectifying p Tel: 03 9637 2261 action to be taken. p Email: [email protected] a The Department does not tolerate improper conduct by employees, nor the taking of reprisals against those who David Latina come forward to disclose such conduct. It is committed Level 34, 121 Exhibition Street to ensuring transparency and accountability in its Melbourne Vic 3000 administrative and management practices and supports Tel: 03 9651 9768 the making of disclosures that reveal corrupt conduct, Email: [email protected] conduct involving a substantial mismanagement of public resources, or conduct involving a substantial risk You can also make your complaint or provide to public health and safety or the environment. DoT will information directly to the Ombudsman. take all reasonable steps to protect people who make The Ombudsman, Mr George Brouwer such disclosures from any detrimental action in reprisal Level 22, 459 Collins Street for making the disclosure. It will also afford natural justice Melbourne Vic 3000 (DX 210174) to the person who is the subject of the disclosure. Tel: 03 9613 6202 Reporting procedures Toll Free: 1800 806 314 Email: [email protected] Disclosures of improper conduct or detrimental action by the Department or its employees may be made to Internet: www.ombudsman.vic.gov.au the following persons: Disclosures can be made in writing or made orally. You may also provide information anonymously. The Department’s Protected Disclosure Coordinator is: Disclosures under the Whistleblowers Vivienne Stanford Protection Act Director, Corporate Governance and Administration The current procedures established by the public body Department of Innovation, Industry and Regional under Part 6 are available upon request Development Disclosures made to DIIRD during the 2007–08 Level 31, 121 Exhibition Street fi nancial year 0 Melbourne Vic 3000 Tel: 03 9651 9862 Disclosures referred during the year by DIIRD to Email: [email protected] the Ombudsman for determination as to whether they are public interest disclosures 0 Disclosed matters referred to DIIRD during the year by the Ombudsman 0 Disclosed matters referred during the year by DIIRD to the Ombudsman to investigate 0 Investigations of disclosed matters taken over by the Ombudsman from DIIRD during the year 0 Requests made under section 74 during the year to the Ombudsman to investigate disclosed matters 0 Disclosed matters that DIIRD has declined to investigate during the year 0 Disclosed matters that were substantiated on investigation and the action taken on completion of the investigation 0 Any recommendations of the Ombudsman under this Act that relate to DIIRD 0 171 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 16: Budget Portfolio Outcomes ic The Budget Portfolio Outcomes provides a comparison between the actual fi nancial statements of all General d Government entities within the portfolio and the n forecasted information published in the Budget Papers. e The Budget Portfolio Outcomes are comprised of the p operatingp statement, balance sheet, statement of achanges in equity and statement of cash fl ows. The Budget portfolio outcomes have been prepared on a consolidated basis and include all General Government entities within the Portfolio. Financial transactions and balances are classifi ed into either Controlled or Administered, in accordance with Australian Accounting Standard 29: Financial Reporting by Governments, and agreed with the Treasurer in the context of the Budget Papers. The following Budget Portfolio Outcomes statements are not subject to audit by the Victorian Auditor- General’s Offi ce and are not prepared on the same basis as the Department’s fi nancial statements as they include the consolidated fi nancial information of the following entities: • The Department of Innovation, Industry and Regional Development; • Regional Development Victoria; • Workplace Rights Advocate; • The Offi ce of the Small Business Commissioner; • Victoria Trade and Investment Offi ce Pty Ltd; • Tourism Victoria; • Film Victoria; • Victorian Skills Commission; and • TAFE Sector organisations; In addition, as a result of the machinery of government changes, the following functions have been consolidated into the department from their effective date: • Workplace Participation, effective 2 September 2007 (previously the Department of Planning and Community Development); and • Citizens Access and Transformation, effective 2 November 2007 (previously the Department of Planning and Community Development).

172 Appendix 16: (continued) Operating Statement for the year ended 30 June 2008 Notes 2007-08 2007-08 2007-08 Variation (b) Actual Budget Adjusted $’000 $’000 Budget (a) $’000 % $’000 ic Income d nOutput appropriations (1) 1,504,964.3 1,420,487 1,507,677.4 84,477.3 5.9 peSales of goods and services (2) 427,963.6 471,425 388,556 (43,461.4) (9.2) p Commonwealth grants (2) 328,456.8 294,404 313,484.3 34,052.8 11.6 a Other revenue from other parties and other income (2) 114,236.2 48,823 85,658.6 65,413.2 134 2,375,620.9 2,235,139 2,295,376.3 140,481.9 6.3 Expenses Employee entitlements (920,598.5) (924,258.6) (911,258.1) 3,660.1 (.4) Depreciation and amortisation (71,875.5) (78,872) (78,319.6) 6,996.5 (8.9) Resources provided free of charge (3) (5,068.6) (5,068.6) (100) Grants and other payments (1) (502,960.9) (421,656.7) (506,312.5) (81,304.2) 19.3 Capital asset charge (170,802) (170,812) (170,818) 10 - Supplies and services (3) (474,149.9) (609,658.7) (523,892) 135,508.8 (22.2) Other expenses from ordinary activities (3) (5,306.4) - (5,306.4) (100) Borrowing costs (330.8) (488) (214.5) 157.2 (32.2) (2,151,092.6) (2,205,746) (2,190,814.7) 54,653.4 (2.5) Net result for the reporting period 224,528.3 29,393 104,561.6 195,135.3 663.9 (a) 2007-08 budget adjustment includes machinery of government changes. (b) Variation between 2007-08 actual and 2007–08 budget. Explanations for major variations between the 2007–08 actual and 2007-08 budget are as follows: (1) Actual output appropriation revenue is higher than budget mainly due to additional revenue received by the Department: • as a result of the machinery of government changes. • via advances received from the Treasurer (refer Note 23 in the Department’s ﬁ nancial statements). This increase in revenue is also reﬂ ected in a corresponding increase in grants and other payments during the reporting period. (2) Increase in actual total non appropriation revenue as compared to budget is mainly due to higher Commonwealth Grant revenue for TAFE institutions and higher than budgeted interest revenue associated with Regional Infrastructure Development Fund (RIDF), and the Australian Synchrotron Contributions Fund. (3) Expenses varied to budget mainly due to lower expenditure for TAFE Institutions. The revised budget was adjusted downwards during the year. In addition, this was impacted by RIDF unspent funds to be utilised in future years.

173 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 16: (continued) Balance Sheet as at 30 June 2008 Notes 2007-08 2007-08 2007-08 Variation (b) Actual Budget Adjusted $’000 $’000 Budget (a) $’000 % $’000 ic Current Assets d Cash assets (1) 350,678.9 417,983.6 303,883.6 (67,304.7) (16.1) n Other fi nancial assets (1) 379,106p 111,505 323,150 267,601e 240 Receivablesp (2) 188,320 229,300.3 131,337.9 (40,980.3) (17.9) aInventories 10,523.9 10,047 8,564 476.9 4.7 Prepayments (2) 18,737.1 10,192.4 17,843.4 8,544.7 83.8 Other assets 319 491 890 (172) (35) 947,684.9 779,519.3 785,668.9 168,165.6 21.6 Non current assets classifi ed as held for sale 177.4 57.2 57.2 120.2 210.1 Total current assets 947,862.3 779,576.5 785,726.1 168,285.8 21.6 Non-current Assets Receivables (2) – 112 112 (112) (100) Other fi nancial assets (1) 95,697.2 58,827.7 61,296.7 36,869.5 62.7 Investments accounted for using the equity method 20,000 20,000 25,000 – – Property, plant and equipment 2,257,781.4 2,278,828.5 2,385,769.1 (21,047.1) (0.9) Intangible assets 2,780.8 3,047 3,635 (266.2) (8.7) Other – 129 129 (129) (100) Total non-current assets 2,376,259.4 2,360,944.2 2,475,941.8 15,315.2 0.6 Total assets 3,324,121.7 3,140,520.7 3,261,667.9 183,601 5.8 Current Liabilities Payables (3) 179,633.8 166,940.1 178,980.5 12,693.7 7.6 Interest bearing liabilities (3) 2,088.6 1,762.7 1,762.7 325.9 18.5 Provisions (c) 138,420 132,184.9 142,406.9 6,235.1 4.7 Other (3) 67,278.6 54,699.7 58,466.2 12,578.9 23 Total current liabilities 387,421 355,587.5 381,616.3 31,833.6 9 Non-current liabilities Interest bearing liabilities (3) 4,459.5 3,585.6 3,585.6 873.9 24.4 Provisions (c) 25,135 26,969.6 26,148.6 (1,834.6) (6.8) Other (3) 30,000 40,022 30,022 (10,022) (25) Amounts owing to other departments – 851 851 (851) (100) Total non-current liabilities 59,594.5 71,428.2 60,607.2 (11,833.7) (16.6) Total liabilities 447,015.5 427,015.6 442,223.5 19,999.9 4.7 Net Assets 2,877,106.2 2,713,505.1 2,819,444.4 163,601.10 6 Equity Contributed capital (4) 557,207 726,016 735,795.8 (168,809) (23.3) Reserves (4) 1,157,981.5 979,176.6 979,176.6 178,804.9 18.3 Accumulated surplus (4) 1,161,917.7 1,008,312.5 1,104,472 153,605.2 15.2 Total Equity 2,877,106.2 2,713,505.1 2,819,444.4 163,601 6 174 (a) 2007-08 budget adjustment includes machinery of government changes. (b) Variation between 2007-08 actual and 2007-08 budget. (c) Includes employee costs and superannuation. Explanations for major variations between the 2007-08 actual and 2007-08 budget are as follows: (1) Higher actual cash assets and other fi nancial assets are predominantly due to operating surplus in the Victoria c Skills Commission’s (VSC) and TAFE Institutions. This was further impacted by unspent RIDF funds,i and interest earned on term deposits. d n(2) Reduction in actual receivables balances are attributable to differences between revenue owed from government eand the payment of these amounts to external parties. Furthermore this was impacted by a transfer between p cash and receivables relating to the VSC term deposits. Prepayments are higher than budget mainly due to the p Victorian Skills Commission, which was revised in the adjusted budget. a (3) In relation to the payables and other liabilities balances: • The variation in payables balance is due to the timing of payments in the Victorian Skills Commission (VSC). • Other liability increase is due to an increase in TAFE deferred grants revenue for the 2007–08 year. This is partially offset by the reduction of unearned income relating to funds received by the Department of Innovation, Industry, and Regional Development (DIIRD) from the Commonwealth for the Synchrotron project. (4) Higher actual accumulated funds balance due to higher than expected operating result (refer operating statement). Contributed capital reduced due to the transfer of Synchrotron to the Administered entity. Reserves increased due to the revaluation of TAFE assets during the year.

175 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 16: (continued) Statement of Cash Flows for the year ended 30 June 2008 Notes 2007-08 2007-08 2007-08 Variation (b) Actual Budget Adjusted $’000 $’000 Budget (a) $’000 % $’000 ic Cash fl ows from operating activities d Receipts from Government (1) 1,819,585.7 1,712,409 1,812,915.7 107,176.7 6.3 n Receipts from other entities (1) 537,324.7p 468,291 497,037.5 69,033.7e 14.7 Payments for supplies, grants aand employeesp (1,899,432.5) (1,953,211) (1,932,647.6) 53,778.4 (2.8) 457,477.9 227,489 377,305.6 229,988.9 101.1 Interest received (2) 49,012.2 14,021 35,498.9 34,991.2 249.6 Finance costs (330.8) (485) (214.5) 154.2 (31.8) Capital assets charge (170,802) (170,812) (170,818) 10 – Other receipts (1) 24,671.9 37,936 39,171.6 (13,264.1) (35) Net cash infl ow (outfl ow) from operating activities 360,029.2 108,149 280,943.6 251,880.2) 232.9 Cash fl ows from investing activities Payments for non fi nancial assets (110,693.1) (113,981) (219,671.7) (3,287.9) (2.9) Proceeds from sale of non-fi nancial assets 517.3 – – 517.3 100 (Payment)/Repayments of investments (2) (326,638) (4,890) (224,004) (321,748) 6,579.7 Net cash infl ow (outfl ow) from investing activities (436,813.9) (118,871) (443,675.7) (317,942.9) 267.5 Cash fl ows from fi nancing activities Net proceeds from capital contribution by State Government (1) 1,322.3 2,913 40,823.1 (1,590.7) (54.6) Net proceeds of borrowings 348.7 – – 348.7 100 Net cash infl ow (outfl ow) from fi nancing activities 1,671 2,913 40,823.1 (1,242) (42.6) Net increase (decrease) in cash held (75,113.7) (7,809) (121,918) (67,304.7) 861.9 Cash at beginning of fi nancial year 425,792.6 425,792.6 425,792.6 – – Cash at end of the fi nancial year 350,678.9 417,983.6 303,874.6 (67,304.7) (16.1) (a) 2007-08 budget adjustment includes machinery of government changes. (b) Variation between 2007-08 actual and 2007-08 budget. Explanations for major variations between the 2007-08 actual and 2007-08 budget are as follows: (1) Increase in cash fl ow has been primarily from operating activities and is mainly due to machinery of government changes and additional funding received via advances from the Treasurer (refer Note 23 in the Department’s fi nancial statements). (2) A net increase in investments and Term deposits relating to RIDF, VSC and TAFE Institutions.

176 Appendix 16: (continued) Statement of Changes in Equity for the year ended 30 June 2008 Notes 2007-08 2007-08 2007-08 Variation (b) Actual Budget Adjusted $’000 $’000 Budget (a) $’000 % $’000 ic Gain/(losses) on revaluation of d nproperty, plant and equipment (1) 163,898 – – 163,898 100.0 eAvailable for sale ﬁ nancial assets – – – – – p Other – – – – – ap Net income recognised directly in equity 163,898 – – 163,898 100.0 Net result for the period (2) 224,528.2 – 29,393 224,528.2 100.0 Total recognised income and expenses for the period 388,426.2 – 29,393 388,426.2 100.0 (a) 2007-08 budget adjusted for machinery of government changes for the period. (b) Variation between 2007-08 actual and 2007-08 budget. Explanations for major variations between the 2007-08 actual and 2007-08 budget are as follows: (1) Gains on revaluation of property, plant and equipment for the TAFE Institutions. (2) Higher actual net result for the period partly due to lower than anticipated spending from the Regional Infrastructure Development Fund and better than expected operating result from the TAFE Institutions.

177 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 16: (continued) Administered Items Statement for the year ended 30 June 2008 Notes 2007-08 2007-08 2007-08 Variation (b) Actual Budget Adjusted $’000 $’000 Budget (a) $’000 % $’000 ic Administered income d Commonwealth grants – – – – n Fines p– 165 – (165)e (100.0) Fees p(1) – 2,150 – (2,150) (100.0) aOther (1) 18,997.1 5,250 5,250 13,747.1 261.8 Total administered income 18,997.1 7,565 5,250 11,432.1 151.1 Administered expenses Expenses on behalf of the State (1,417.4) 67 67 (1,484.4) (2,215.5) Payments into the consolidated fund (1) 11,734.1 7,498 5,183 4,236.1 56.5 Total administered expenses 10,316.7 7,565 5,250 2,751.7 36.4 Income less expenses 8,680.4 – – 8,680.4 100.0 Administered assets Cash assets (88.5) (74.5) (74.5) (14) 18.8 Receivables 59,288.9 45,818.6 45,818.6 13,470.3 29.4 Investments 919,235 – – 919,235 100.0 Total administered assets 978,435.4 45,744.1 45,744.1 932,691.3 (1,955.2) Administered liabilities Payables (1.2) (17.1) (17.1) 15.9 (93) Other (2) 97,980.5 93,220.5 93,220.5 4,760 5.1 Total administered liabilities 97,979.3 93,203.4 93,203.4 4,775.9 5.1 Net assets 880,456.1 (47,459.3) (47,459.3) 927,915.4 (1,955.2) (a) 2007-08 budget adjusted for machinery of government changes. (b) Variation between 2007-08 actual and 2007-08 budget. Explanations for major variations between the 2007-08 actual and 2007-08 budget are as follows: (1) Higher than expected Administered income and payments to the consolidated fund. (2) No budget is included for investments in the Administered Entity.

178 1 2 3 appen dic $m 12.4 10.3 -16.9% 10.3 $m 12.4 22.5% 27.8 $m 22.7 million 24.1 36.0 49.3% million 24.1 36.0

Cost Cost Cost

Output Quantity Quality Output Quantity Quality Output Quantity Quality

Promotion Support

Business

Innovative

Development/Export

Measure Target Actual Cost Variance Actual Output groups Appendix 17: Target Output Group/Output Investment Attraction/Investment and Attraction Facilitation Indicator Performance Measure Trade Investment Projects under development Jobs derived from investments facilitated Developing New investments facilitated Industries/Small Unit of Client Satisfaction rating by businesses with investment facilitation services 2007-2008 per cent 2007-2008 Companies provided with export assistance Output Exports facilitated and imports replaced 80% c programs rms participating in individual export speciﬁ Number of ﬁ Note fairs and missions supported Trade number number – number 250 5,000 700 Class Service World initiative Agencies participating in $m 8,212 270 in person) web, Business interactions (call, number Program Businesses participating in the My Business People 1,167 Registration for online Services 1,600 $m 3,150 referral or mentoring service Client satisfaction of small business information, 3,254 Victorian Small Business Commissioner – proportion of business disputes number 3,481 per cent successfully mediated by Commissioner 689 number number satisfaction with mediation service Victorian Small Business Commissioner – client per cent 29 90% 2,150 200 80 80% number 89% 38 325 140,000 81% 120 200,539 number per cent 30,000 60% 28,181 81% Client satisfaction with export assistance offered per cent 80% 85% 179 Department of Innovation, Industry and Regional Development Annual Report 07-08 4 app endic $m 14.5 12.1 -16.6 % -16.6 12.1 $m 14.5 $m 127.9 132.0 % 3.2 % 2.9 7.1 $m 6.9

Cost Cost

Output Cost Quantity Quality Output Quantity Quality Output Quantity Quality

(STI)

Industries/Innovative Industries/Science Industries/

Workplaces

Innovation

and Innovative Innovative Innovative

Manufacturing

Performing

High

Measure Target Actual Cost Variance Actual (continued) Appendix 17: Target Output Group/Output Developing Indicator Performance Measure Developing Technology Respond to general workplace enquiries Information sessions provided Advocate: Rights Workplace Client satisfaction with activities designed to facilitate high performing and Unit of innovative workplaces and with investment facilitation services agenda Families Working Client satisfaction with the activities arising from 2007-2008 Victoria represented in major industrial relations cases and inquiries in per cent accordance with Government policy 2007-2008 number Output Developing 80% per cent Note 30 Biotechnology partnerships facilitated number and Innovation 90% Technology Businesses/researchers accessing Science 90% (STI) funded infrastructure 8,000 STI infrastructure projects under management 56 of projects attracted 90% by STI funding Value Victorian participation in international biotechnology forums led by Government 17,596 number sought by STI funded organisations Patents Skills expansion - PhDs commenced in STI funded projects per cent 6 100% number Attendees at presentations by keynote speakers number 100% Visits program Companies participating in Innovation Insights 7 High performance consortia supported number 5 ratio 44 Advanced Manufacturing programs satisfaction with Participant number 200 number 3.5:1 5 66 number 300 326 25 number per cent 0 200 401 59 2,400 80% 205 number 960 80% 3 0 and Advanced 180 appen5 d6 ic $m 28.3 22.8 -19.4 % -19.4 22.8 $m 28.3 $m 4.9 6.9 40.8 %

Cost Cost

Quantity Output Quantity Output Quantity Quality Industries/

Innovative Industries/ Innovative

Creative Industries Film Victoria production $m 78 204.9 Cost 78 Variance production Actual $m Target Output Group/Output Victoria Developing Indicator Performance Developing Measure Film nancial services sector Companies assisted in the fi Industries/ Developing Innovative Studies Initiatives completed by Melbourne Centre for Financial Strategic Policy nancial/shared services New investments facilitated in fi Unit of 2007-2008 television and new media production supported by lm, of fi Value number 2007-2008 Output Victoria Additional employment from production supported by Film number case studies completed Design Sector Initiative: number 6 Note seminars and workshops held lectures, Design Sector Initiative: seminars and workshops people participating in lectures, Design Sector Initiative: 40 number of FTEs Number 5 2,340 6 1,000 41 Number of major research and evaluation projects completed number 6,147 6 2,418 Service provision rating number 20 number 12 45 8 12 8 per cent 80% 87% Service Industries Output Cost $m 3.2 2.9 -9.4 % 181 Department of Innovation, Industry and Regional Development Annual Report 07-08 ap7 pendic $m 20.2 80.9 300.5 % % 1.15 26.4 $m 26.1

Cost Cost Cost

Output Quantity Quality Timeliness Output Timeliness Output Quantity Quality

Measure Target Actual Cost Variance Actual (continued) Appendix 17: Target Output Group/Output and Programs ICT Policy Indicator Performance Measure Citizens Access and Transformation ICT companies provided with export promotion ICT Investment projects under development reviews underway ICT policy ICT projects and programs underway ICT research projects underway Unit of and Missions supported Fair Trade ICT 2007-2008 Assessment of quarterly monitoring reports for ICT grant agreements undertaken 2007-2008 per cent Output provided ICT grant recipients made according to contracts, Payments Regional Development/Regional Economic number meet contract terms Development and Investment 100% Note number standards and guidelines in Develop information resource products, 200 100% ed Government requirements response to identiﬁ cer per day Victoria public contact per ofﬁ Information 25 number Victoria Online – increase in usage 224 number number provision of public information Timely number 26 21 Development of whole-of-government information and service access strategic directions relating to improvements in service performance and 3 6 greater public participation number 1 27 per cent 38% 2 7 Victoria provided with assistance for growth opportunities Companies in Regional 1 90% number Victoria Jobs created in regional 38% per cent Victoria New exports facilitated in regional Victoria New investment facilitated in regional 90% per cent 160 100% per cent satisfaction with Regional Business Investment Ready Participant program 10% 166 100% 95% per cent 58.1% 75% number 95% 93% $m $m 1 number 100 750 1,000 1 2,766 1,191 699 182 appen8 d9 ic $m 31.9 17.8 -44.2 % -44.2 17.8 $m 31.9 % -41.6 53.8 $m 92.2

Cost Cost

Output Quantity Quality Timeliness Output Quantity Quality Timeliness

Measure Target Actual Cost Variance Actual supported Target Output Group/Output Regional Development/Regional Promotion and Development Indicator Performance Measure Projects Victoria Delivery of Leadership Programs in Provincial Regional Development/Regional working and/or Enquiries to provincial Councils about living, Infrastructure Development investing in their region Projects to support Councils plan for growth and change Unit of Provincial Economic Partnerships 2007-2008 Support Provincial events held with RDV’s number per region 2007-2008 delivery of promotion and ed with RDV’s Regional councils satisﬁ Output 1 development programs Note number ed with timelines of RDVs response to queries and Regional councils satisﬁ funding applications 1 25 Development Fund) Towns Gas RIDF projects funded (excluding 32 number Development Fund (STDF) projects funded number Towns Small number RIDF Committee recommendations accepted by Ministers 55 15 500 Advice to RIDF applicants – after receipt of applications number 68 483 43 number per cent 15 per cent 75% 50 55 per cent 90% days 100% 75% 73 100% 90 92% 90 183 Department of Innovation, Industry and Regional Development Annual Report 07-08 ndic p79.8 13.5% 10 pe a 70.3

$m % -5.0 1,634.3 $m 1,720.2

Cost Cost

Output Quantity Quality Output Quantity Quantity

Measure Target Actual Cost Variance Actual 82.7 (continued) Appendix 17: 16,057 Target Output Group/Output Marketing Victoria/Tourism 74.23 Indicator Performance 13,360 Measure bonus (million) Investment projects facilitated Skills Number of visitors (International) Visitor expenditure (Domestic) number Visitor expenditure (International) Victoria (Domestic) Visitor expenditure in Regional Unit of Victoria (International) Visitor expenditure in Regional provided annual visitors to site www.visitvictoria.com 2007-2008 2007-2008 Interstate Victoria: market awareness of advertising in Target Output Victoria Victoria: market awareness of advertising in Target completion Domestic of media coverage generated: Value Note International of media coverage generated: Value number $ billion number (million) $m per cent $m 1.3-1.6 Annual Government-funded module enrolments 5.0-5.4 number (‘000) per cent Audit of contract compliance by registered training organisations and $ billion $ billion 16-21% Systems organisations Training other State 200-250 1.5 250-300 5,200 Government-funded student contact hours of training and further education 14-19% 6.0 10-11 15.6% 2.5-2.8 260 Government-funded student contact hours of training and further education 301 5,166 14.1% provided to 15-24 year olds $m $m Number of apprentices/trainees completions who qualify for the 12.1 3.2 number (million) Number of apprenticeships/traineeship commencements by new employees 120-140 40-50 Number of individuals assisted through Skill Up 2.25 Number of people assisted by Returning to Earning Program number 104.4 24.4 Program Pathways Youth number students funded through TAFE Minimum target for 2.48 52,600 rate Participation of 15 to 19 year old in training and further education in Victoria all Victoria: number 57,991 175 number 2,100 176 number (million) number 1,600 2,275 44 1,000 2,950 46.3 2,374 per cent 27.8% 26.9% 184 appendic ainst funding carried over from 2006-07. ainst funding carried over itiatives to be carried over into 2008-09. itiatives to be carried over of Citizen’s Access and Transformation Branch into DIIRD as part of Machinery Branch of Transformation Access and of Citizen’s ompleted in future years. ompleted in future 09. ood initiatives and HMAS Canberra. Programs

Government Changes. per month number 70,000 69,399 70,000 23 month Employment number 40 per graduated who rate quality of training as four or more TAFE of Percentage ve out of fi programs as proportion of population TAFE ages 15-64 participating Persons in Successful training completions as measured by module load pass rate per cent graduates in employment six months following graduation TAFE days 12.7% Employment Scheme – apprenticeships and Youth Government per cent traineeships commenced in person or services cations provided (by phone, Unit – client Overseas Qualifi 12.5% 77.5% in writing) per cent (WPP) – job seekers who achieve sustainable Participation Workforce employment (minimum of 16 weeks) 76.8% Skilled Migration Program – average number of unique visitors to the website 80% applications Experience Counts Program – commencements greater than 10% of target) Notes (Variances Scheme – commencements Trainee Disability 81.6% 1. for the Investment Support Program. against additional funding received to expenditure mainly relates Variance satisfaction with services Skilled Migration Program – client provided 2. for in as well underexpenditure carryover to a lower mainly relates of 2005-06 funding than estimated in target, Variance Employment Scheme – participants who completed and Youth Government 3. costs. of overhead against additional external funding and reallocation to expenditure mainly relates Variance 4. education or training three months after leaving program are in employment, into 2008- for initiatives to be carried over costs and underexpenditure of overhead to reallocation mainly relates Variance 60,000 – 5. satisfaction Employment with services Initiatives – client provided through working years. funding to future of Design Sector Strategy to rephasing mainly relates Variance 6. Skills and and Moving Forward Partnerships Participation Workforce Advisory ag and expenditure Board Economy for the Innovation against funding provided to expenditure mainly relates per cent Variance per cent 7. Jobs initiative – job seekers and employers for the Peak Computing Facility and transfer against additional funding received to expenditure mainly relates Variance per cent education or training Experience Counts Program – participants in employment, three months after leaving the program 80% 85% number education or training Scheme – participants in employment, Trainee Disability 85% number number three months after leaving the program number Skilled Migration Program – average processing time for state sponsorship 450 - 550 1,100 - 1,300 93% 90% 88.9% 130 1,634 682 25 number 0 4,000 - 4,200 per cent 0 4,576 80-85% per cent per cent 95% 55% 50% NA NA 8. years. Victoria Initiatives to future of Provincial to rephasing mainly relates Variance 9. Development Fund for initiatives to be c to the Regional Infrastructure relating to underexpenditure mainly relates Variance 10. Variance mainly relates to expenditure against additional funding received for Major Events initiatives, fl for Major Events initiatives, against additional funding received to expenditure mainly relates Variance 10. 185 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 18: Summary of additional information available on request

In compliance with the requirements of the Standing The information is available on request from: ic Directions of the Minister for Finance, details in respect Director d of the items listed below have been retained by the Department and are available to the relevant Ministers, Governance and Services n Members of Parliament and the public on request e Department of Innovation Industry and Regional (subject to the freedom of information requirements, if pDevelopment applicable): p Level 31, 121 Exhibition Street a(a) a statement that declarations of pecuniary interests Melbourne Victoria 3000 have been duly completed by all relevant offi cers of the Department Tel: 03 9651 9108 (b) details of shares held by senior offi cers as nominee or held benefi cially in a statutory authority or subsidiary (c) details of publications produced by the Department about the activities of the Department and where they can be obtained (d) details of changes in prices, fees, charges, rates and levies charged by the Department for its services, including services that are administered (e) details of any major external reviews carried out in respect of the operation of the Department (f) details of any other research and development activities undertaken by the Department that are not otherwise covered either in the Report of Operations or in a document which contains the fi nancial report and Report of Operations (g) details of overseas visits undertaken including a summary of the objectives and outcomes of each visit (h) details of major promotional, public relations and marketing activities undertaken by the Department to develop community awareness of the services provided by the Department (i) details of assessments and measures undertaken to improve the occupational health and safety of employees, not otherwise detailed in the Report of Operations (j) a general statement on industrial relations within the Department and details of time lost through industrial accidents and disputes, which are not otherwise detailed in the Report of Operations (k) a list of major committees sponsored by the Department, the purposes of each committee and the extent to which the purposes have been achieved.

186 Appendix: 19 Contact details

Mildura VBC c Department of Regional Ofﬁ ces and i Innovation Industry and Victoriand Business 131 Langtree Avenue nRegional Development Mildura VIC 3500 Centres (VBCs) eHead Ofﬁ ce Tel: 03 5051 2000 Ballarat VBC p 121 Exhibition Street Fax: 03 5051 2020 p Melbourne VIC 3000 48 Sturt Street Shepparton VBC Ballarat VIC 3350 a Postal Address 3/164 Welsford Street Tel: 03 5320 5900 Shepparton VIC 3630 PO Box 4509 Fax: 03 5330 5998 Melbourne VIC 3001 Tel: 03 5821 1811 Bendigo VBC Tel: 03 9651 9999 Fax: 03 5822 2554 Fax: 03 9651 9962 46 Edward Street Traralgon VBC Bendigo VIC 3550 www.diird.vic.gov.au 33 Breed Street Tel: 03 5442 4100 Fax: 03 5442 5452 Traralgon VIC 3844 Dandenong Tel: 03 5174 9233 (SE Metropolitan) VBC Fax: 03 5174 7845 314A Thomas Street Vermont Dandenong VIC 3175 (Eastern Metropolitan) VBC Tel: 03 9791 5755 520 Canterbury Road Fax: 03 9794 5644 Vermont VIC 3133 Geelong VBC Tel: 03 9874 5733 69-71 Moorabool Street Fax: 03 9874 5135 Geelong VIC 3220 Wangaratta North Eastern VBC Tel: 03 5229 0641 Fax: 03 5229 9503 27-29 Faithfull Street Glenroy (NW Metropolitan) VBC Wangaratta VIC 3677 Suite A, 3 Belair Avenue Tel: 03 5721 6988 Glenroy VIC 3046 Fax: 03 5721 2265 Tel: 03 9304 4344 Wodonga VBC Fax: 03 9304 4355 6/22 Stanley Street Melbourne CBD Wodonga VIC 3690 Victorian Consumer & Business Centre Tel: 02 6056 2166 113 Exhibition Street Fax: 02 6056 2334 Melbourne VIC 3000 Tel: 13 22 15 Fax: 03 9651 8108

187 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 19: (continued)

Tourism Victoria Hong Kong – People’s Los Angeles – North Offi ces Republic of China America Melbourne (Head Offi ce) Tourism Victoria Tourism Victoria c Suite 6706, Central Plaza Suite 1150, 6100 Center Drive i Level 32, 121 Collins St Melbourne VIC 3000 18 Harbour Road Los Angeles CA 90045 USA d Wanchai, Hong Kong GPO Box 2219T Tel: 0011 1 310 695 3245 n Melbourne VIC 3001 Tel: 0011 852 2531 3870 Fax: 0015 1 310 695 3248e Fax: 0011 852p 2845 2213 [email protected] Tel: +61 3 9653 9777 Fax:p +61 3 9653 9722 a Tokyo – Japan Europe Internet: Tourism Victoria Tourism Victoria visitvictoria.com Australian Business Centre Neue Mainzer Str 22 visitmelbourne.com 28F New Otani Garden Court 60311 Frankfurt, Germany visionsofvictoria.com 4 – 1 Kioi – Cho, Chiyoda-ku tourismvictoria.com.au Tel: 0011 49 2740 0677 Tokyo 102 – 0094 Japan [email protected] Fax: 0015 49 2740 0640 Tel: 0011 81 3 5214 0787 [email protected] Sydney Fax: 0015 81 3 5214 0790 Tourism Victoria [email protected] United Kingdom/Ireland/ Suite 7, Level 18 Nordic Countries Darling Park Tower 2 Singapore Tourism Victoria 201 Sussex Street Tourism Victoria Sixth Floor, Australia Centre, Sydney NSW 2000 101 Thomson Road Melbourne Place Tel: +61 2 9287 6500 #08-01 United Square Strand, London WC2B 4LG, UK Fax: +61 2 9287 6507 Singapore 307591 Tel: 0011 44 207 438 4645 Tel: 0011 65 6255 6888 Fax: 0015 44 207 240 6690 Shanghai – People’s Fax: 0011 65 6255 2922 [email protected] Republic of China [email protected] Victoria Trade and Investment Offi ce Auckland – New Zealand Suite 308, Shanghai Centre Tourism Victoria 1376 Nanjing West Road Level 3, 125 The Strand Shanghai 200040 China Parnell Tel: 0011 86 21 6279 8681 Auckland, New Zealand Fax: 0015 86 21 6279 8685 PO Box 1666 [email protected] Auckland, New Zealand Tel: 0011 649 379 0425 Fax: 0015 649 379 4361 [email protected]

188 Appendix 19: (continued)

Victorian Hong Kong, San Fransisco, USA Government People’s Republic of Mr Andrew Dyer Executive Director Business Ofﬁ ces China Mr Allen Kwok c 575 Market Street,i Suite 2080 Overseas Investmentd Manager San Francisco CA 94104 USA nUnited Kingdom 2108 Harbour Centre Tel: 0011 1 415 856 0552 25 Harbour Road Fax: 0011 1 415 856 0517 eDavid Buckingham p Wanchai, Hong Kong Email: [email protected] Agent-General Tel: 0011 852 2587 1133 p Victoria House Chicago, USA Fax: 0015 852 2802 9675 a Melbourne Place, Strand Ms Louisa Jordan London WC2B 4LG Email: [email protected] Investment Manager United Kingdom Nanjing, 123 N Wacker Drive, Suite 1325 Tel: 0011 44 207 836 2656 People’s Republic of Chicago IL 60606 Fax: 0015 44 207 240 6025 China USA Email: [email protected] Mr Jason Li Tel: 0011 1 312 332 0862 Japan Investment Manager Fax: 0015 1 312 332 0863 Mr Tim Dillon Suite 1164, World Trade Centre Email: [email protected] Executive Director Jinling Hotel New York, USA 2 Hanzhong Road Level 13 Nanjing 210005 China Ms Joanna Gurry Fukoku Seimei Building Investment Manager 2-2-2 Uchisaiwai-cho, Chiyoda-ku Tel: 0011 86 25 84701 231 150 E. 42nd Street, 34th Floor Tokyo 100 0011 Japan Fax: 0015 86 25 84709 821 New York, NY 10017 Tel: 0011 81 3 3519 3371 Email: [email protected] USA Fax: 0015 81 3 3519 3375 Bangalore, India Tel: 0011 1 212 687 0934 Email: [email protected] Mr Nik Guruprasad Fax: 0015 1 212 687 2187 Germany A/Executive Director Email: [email protected] Mr Eric Menges Level 1 ‘Pride Elite’ Building Executive Director 10 Museum Road Bangalore 560 001 Grueneburgweg 58 - 62 INDIA 60322 Frankfurt am Main Germany Tel: 0011 91 80 4122 7560 Fax: 0015 91 80 2558 9107 Tel: 0011 49 69 668 074 0 Fax: 0015 49 69 668 074 66 email: [email protected] Email: [email protected] United Arab Emirates Shanghai, Kassem Younes People’s Republic of A/Executive Director China Ofﬁ ce 111, 1st Floor Emarat Atrium Mr Charles Brent Sheikh Zayed Road Executive Director PO Box 58004 Suite 308, Shanghai Centre 1376 Nanjing West Road Tel: 0011 971 4 321 2600 Shanghai 200040 China Fax: 0015 971 4 321 2700 Tel: 0011 86 21 6279 8681 Email: [email protected] Fax: 0015 86 21 6279 8575 Email: [email protected]

189 Department of Innovation, Industry and Regional Development Annual Report 07-08 Appendix 20: Disclosure index The Annual Report of the Department of Innovation, Industry and Regional Development is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identifi cation of the Department’s compliance with statutory disclosure requirements. ic Ministerial directions d Legislation Requirement Page reference Legislation Requirement Page reference n Report of operations FRD 24B Reporting of offi ce-based e environmental impacts 129 Charter and purpose p FRD 25 Victorian Industry Participation Policy FRDp 22B Manner of establishment and the disclosures 125 a relevant Ministers 4 FRD 29 Workforce Data disclosures 119 FRD 22B Objectives, functions, powers and duties 73 Financial Report FRD 22B Nature and range of services Financial statements required under provided 6 Part 7 of the FMA Management and structure SD4.2(a) Statement of Changes in Equity 70 FRD 22B Organisational structure 10 SD4.2(b) Operating Statement 68 Financial and other information SD4.2(b) Balance Sheet 69 FRD 8A Budget portfolio outcomes 172 SD4.2(b) Cash Flow Statement 71 FRD 10 Disclosure index 190 Other requirements under Standing FRD 12A Disclosure of major contracts 123 Directions 4.2 FRD 15B Executive offi cer disclosures 119 SD4.2(c) Compliance with Australian FRD 22B Operational and budgetary Accounting Standards and other objectives and performance authoritative pronouncements 72 against objective 172 SD4.2(c) Compliance with Ministerial FRD 22B Employment and conduct principles 123 Directions 72 FRD 22B Occupational health and safety policy 122 SD4.2(d) Rounding of amounts 78 FRD 22B Summary of the fi nancial results SD4.2(c) Accountable Offi cer’s declaration 113 for the year 133 SD4.2(f) Compliance with Model FRD 22B Signifi cant changes in fi nancial Financial Report 72 position during the year 133 Other disclosures as required by FRDs FRD 22B Major changes or factors affecting in notes to the fi nancial statements performance 172 FRD 9A Departmental disclosure of FRD 22B Subsequent events N/A administered assets and liabilities 100 FRD 22B Application and operation of FRD 11 Disclosure of ex-gratia payments 107 Freedom of Information Act 1982 124 FRD 13 Disclosure of parliamentary FRD 22B Compliance with building and appropriations 106 maintenance provisions of Building Act 1993 127 FRD 21A Responsible person and executive offi cer disclosures 111 FRD 22B Statement on National Competition Policy 123 Legislation FRD 22B Application and operation of the Freedom of Information Act 1982 124 Whistleblowers Protection Act 2001 171 Building Act 1983 127 FRD 22B Details of consultancies over Whistleblowers Protection Act 2001 171 $100 000 120 Victorian Industry Participation Policy Act 2003 125 FRD 22B Details of consultancies under $100 000 120 Financial Management Act 1994 72 FRD 22B Statement of availability of other information 186 190 Department of Innovation, Industry and Regional Development 121 Exhibition Street, Melbourne VIC 3000 Postal Address PO Box 4509, Melbourne VIC 3001 Telephone: (03) 9651 9999 Facsimile: (03) 9651 9962 www.diird.vic.gov.au