Annual Report | 2 011 Main Roads About this Report

Welcome to our 2011 Annual Report. This report is designed to provide you with easy to read information on how we performed over the past 12 months in our custodianship of Western Australia’s State road network. This report provides a comprehensive look at the services that we delivered to the Western Australian community over the past year. Not only does our report highlight our successes, but also recognises and addresses the challenges and opportunities facing us in the future. We remain committed to being recognised as a sustainable, transparent and responsive organisation that keeps stakeholders, community and the Government well informed of our operations.

This year, our efforts have The Key Operations continued to focus on section identifies our future improving the readability and challenges and opportunities accessibility of our report. and is focused around the We have simplified the design services that we provide and layout and for the first to the community for each time, our online Annual Report of the Programs for which is available in a new format we receive funding. Each that is aimed at enhancing Program includes details of your reading experience and major projects and initiatives enabling quick access to undertaken over the past specific sections of the report. 12 months and looks ahead to what we will be delivering Our report is divided into in 2011–12. four areas. The Year in Review provides you with an The section on Social overview from our Managing Performance integrates Director, introduces you to our information on our people, Corporate Executive team and community, safety practices presents a snapshot of our and sustainability. This performance scorecard and year, once again we have financial outcomes. endeavoured to benchmark our organisation against best practice in sustainability and reviewing how we perform against the Global Reporting Initiative (GRI) G3.

A principal shared path.

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The report concludes with details on our Governance Practices Online as we provide information on how we direct and manage our business activities to optimise performance, achieve regulatory Annual Report compliance and deliver value for our customers. As only limited copies As part of our continuous improvement approach we welcome any of the Annual Report are feedback you might have on this report and your queries on any produced, you may access aspect of the activities undertaken by Main Roads or suggestions our online Annual Report on how we can enhance the information we provide. To offer on the Main Roads website your comments or ask a question, please contact the Manager www.mainroads.wa.gov.au Business Performance by: in the About Main Roads, publications section. Our 2011 online report Phone 138 138 has been designed with accessibility and readability Web www.mainroads.wa.gov.au in mind, as we have and click on Contact Us endeavoured to take into Mail Write to us at account the diverse needs Main Roads Western Australia of our online audience. PO Box 6202 East WA 6892

Visit Call into any of our offices located throughout the State.

Statement of Compliance To the Honourable Troy Buswell MLA, BEc Minister for Transport; Housing

In accordance with Section 63 of the Financial Management Act 2006, we hereby submit for your information and presentation to Parliament the Annual Report of the Commissioner of Main Roads for the year ended 30 June 2011. Main Roads Annual Report 2011

The Annual Report has been prepared in accordance with the provisions of the Financial Management Act 2006.

Menno Henneveld Reece Waldock Managing Director of Main Roads Accountable Authority 16 August 2011 16 August 2011

1 Vision and Values

Our Purpose To provide safe and efficient road access that will enhance community lifestyles and ensure economic prosperity.

Our Vision To be recognised for excellence in customer service and world-class road access.

Our Stakeholders We consider that every person who lives or does business in Western Australia is a customer. A wide range of groups are consulted within the course of conducting our business, including community, business and Government stakeholders and representatives.

Strategic Direction We strive to achieve excellence through inspiring leadership and strong collaborative relationships. There are five strategic areas of focus that will assist in achieving this:

Providing the right roads for Western Australia Making roads work for the community Creating our workforce of the future Inspiring leadership Enhancing relationships.

By making decisions for tomorrow, not just today, we will be well-positioned to provide the best opportunities for current and future generations.

2 )

Values Our values form the foundation upon 2 which Main Roads is built. They represent our culture, guide our behaviours and influence

the decision-making process and relationships (Km) Region Population Population

with each other, our customers and partners. (Thousand) State Roads State Roads Area Covered Area Covered

Our values are: (Thousand Km

1 Gascoyne 134 10 995 Roads Matter: taking pride in Working Together: Goldfields– 2 managing the road network for enhancing relationships Esperance 953 55 2,202 the benefit of the community and teamwork Great 3 Embracing Challenge: Professionalism: providing Southern 49 59 1,561 anticipating and taking high levels of expertise in 4 Kimberley 424 34 2,246 up challenges delivering our services 5 Metropolitan 5 1,583 846 Excellence in Customer Family: respecting and Service: understanding and supporting our customers, 6 Mid West 285 52 2,645 providing what is important to the community and each other. 7 Pilbara 510 46 2,738 our customers 8 South West 29 233 1,745

Wheatbelt 9 North 100 49 1,971

Wheatbelt 10 Our Role In Western Australia, we have South 57 23 1,554 one of the most geographically distributed road networks in the world which Main Roads, Total 2,546 2,144 18,503 as the State road authority, is entrusted with managing and providing access to all road users across the State.

We work closely with our portfolio colleagues and Local Government to plan, build and maintain an integrated and efficient world-class road transport network of over 18,500 kilometres. We manage $41 billion of assets (road assets valued at $39 billion) that support the needs of all road users across the State.

We operate from ten regions located throughout the State: Main Roads Annual Report 2011

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Highlights

Eliminating Worst Linking Crash Site and Perth Construction of the $40.6 million Opening of the $155 million Mandurah Entrance Reid –Alexander Drive Road () in October completed, eliminating the metropolitan 2010, almost three months ahead of schedule. area’s worst crash site. This provides motorists with a direct link between Mandurah and the . $40.6m $155m

Opening of Indian Ocean Increasing Women Drive Ahead of Schedule in Our Workforce Opening of the $98 million Launched our “Women in Management Policy” (Lancelin–Cervantes Stage 2 Project), completed aiming to increase the presence of women in our nine months ahead of schedule. workforce and in senior management positions. $98m Women in Management

Community Responding to Satisfaction Climate Change Opening of the $98 million Indian Ocean Drive A Carbon Reduction Action Plan and Target (Lancelin–Cervantes Stage 2 Project), completed for a reduction of 5–15% of our 2010 carbon nine months ahead of schedule. emissions by 2020. Sustaining Our 97% Environment

Working with Outstanding Local Government Contribution Award Signed Historic agreement with six members of Main Roads received the Alliancing Association the Mid West Regional Council helping to sustain of Australasia’s Outstanding Contribution Award communities in rural centres and forging stronger recognising our role in advancing alliancing links with Local Government. delivery methods. Sustaining Local Advancing Communities Alliancing

4 Table of Contents

2011 in Review Page

Director General’s Foreword 6

Managing Director’s Message 7

Remembering Don Aitken 11

Our Corporate Executive Team 12

Finance Overview 18

Our Scorecard 20

Key Operations

Achieving Government Goals 22

Significant Challenges and Opportunities 22

Road Safety 24

Road Efficiency 29

State Development 33

Maintenance 38

Community Access 43

Office of Road Safety 46

Road Management 51

Social Performance

Sustainability 56

Enhancing Community Relationships 66

Our People 74

Safety, Health and Well-being 83 Main Roads Annual Report 2011

Governance Practices

Governance 90

Performance Measures 103

Financial Statements and Notes 121

Appendices 166

Index 186

Glossary 189 Kwinana Freeway. 5 2011 in Review

Director General’s Foreword

The Transport portfolio reached a significant milestone on 3 May 2011, marking 12 months since I took responsibility for the State’s three transport agencies – Department of Transport, Public Transport Authority and Main Roads WA.

In the past year, I’ve taken a In a year of changing priorities, more holistic view of the key the Transport portfolio role that transport plays in our has overcome challenges, State’s continued economic accomplished significant growth, and especially of the goals, while demonstrating considerable benefits offered an integrated model that by a cohesive, integrated acts as a benchmark for approach to the planning, other Government agencies. investment and operation The formal appointment of Western Australia’s of Menno Henneveld as transport system. Managing Director of Main Roads further strengthens the Together with the Minister position of Main Roads as a for Transport, we are setting leader in the operation and clear priorities and investing management of the State’s in our Transport system, road network. while planning for the next generation of transport users. As Director General – Transport, it is a privilege to lead such a strong team and I would like to commend the many individuals and teams across the Portfolio for their efforts over the past twelve months. I look forward to working with you all in the years ahead to achieve all that we have planned.

Reece Waldock Director General –Transport

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Managing Director’s Message

Reflecting on a Challenging Year

The past twelve months saw record floods, extraordinary storms and devastating fires adversely affect communities throughout Western Australia. These events also caused major disruption to the State’s road network, severely testing both the network itself and our ability to respond to the needs of our road users.

These events provided In delivering these programs snapshots, or moments in time we demonstrated our when our people demonstrated unswerving commitment remarkable resilience and to enhancing community a deep adherence to our lifestyles, preserving the Values. Less conspicuous, environment and making a but of equal significance, is the significant contribution to the commitment of all Main Roads economic prosperity of the people across the State who, State. In short we continue on a day-to-day basis deal with to apply the principles of our incidents, problems and issues sustainability framework as in a manner which ensures we move towards becoming a the mobility of road users and truly sustainable organisation. We witnessed the heaviest- ensures they have access to ever rainfall recorded leading safe and efficient road services. to the highest-ever flow in the Gascoyne River; flooding The 2010–11 year saw us in the Kimberley, Pilbara and deliver $1.2 billion of road Goldfields; floods and storms programs and road services in the Wheatbelt and fires and to the people of Western storms in the South West and Australia. Our financial Metropolitan areas. In spite of

performance in managing Main Roads Annual Report 2011 the devastating impact on our the State’s road network road network and our road is a challenging task. users, the tireless dedication Our performance in achieving and selfless application of our over 99% expenditure of customer service ethos saw our total cost of services Main Roads people develop budget in the face of adverse solutions which kept traffic weather conditions, complex moving and returned services and increasing regulatory back to normal in the shortest constraints and the need time possible. for genuine and effective community engagement is a strong performance.

7 Achievements Sustainability

There were many achievements throughout the year and most are All of our activities have a mentioned in this report. The following represent some of the more direct impact on the economy, significant achievements: the environment and people. We continuously endeavour The $155 million Mandurah With two new bridges to apply our sustainability Entrance Road named carrying framework to drive Main Roads Mandjoogoordap Drive traffic over Alexander Drive towards becoming a more was opened to traffic in the overpass was opened sustainable and responsive October 2010, almost three in April 2011, putting an organisation. Some of the months ahead of schedule. end to the intersection’s significant achievements The road has provided a notorious “black spot” across this broad area include: much needed direct link status. Built on time and into Mandurah from the on budget, more than Development of a recently completed Kwinana 86,000 people who use Carbon Action Plan/Climate Freeway Extension. As well this intersection each day Change Adaptation and as a safe, secure and will enjoy less congestion, Mitigation Plan with a target aesthetically pleasing four reduced delays and vastly 15% reduction of 2010 lane , other improved safety. levels by 2020 high quality infrastructure included nearly 400 metres Completion of the Recognition by the Global of rail tunnel, upgraded $125 million rehabilitation Reporting Initiative that our intersections and and upgrade of the Annual Report fulfils the outstanding landscaping requirements of GRI G3 and artwork which have from Muchea to Wubin. Guidelines Level B created a grand entry to Conducted as a Program Growth in the ROADS Mandurah for road and Alliance, the projects Foundation to provide rail alike. delivered adopted a highly traineeships for innovative approach to young, unemployed or The completion of the ensure value for money and second stage of the disadvantaged youth in also achieve significantly Regional areas Lancelin–Cervantes safer road access. Road in September 2010 Taking possession of a represented the final section The new Integrated Service fully electric converted of the Indian Ocean Drive. Arrangements (ISAs) use Ford Focus as part of a The 55 kilometre section relationship contracting trial to move to electric of rural highway was built principles to provide vehicle transport under direct management integrated operational asset On-going independent by Main Roads, the first management, network re-certification of our to be delivered this way operations and road Environmental Management for more than 10 years, maintenance services. System against International and was completed nine The new arrangements Standard 14001 which months ahead of schedule are already operational for addresses environmental and well under budget. five of the seven identified networks with the final two risk across the organisation. to be in place during the second half of 2011. In early We look ahead positively to 2011, Main Roads entered the continued development of into an historic agreement our Sustainability Performance with six members of Framework which includes the Mid West Regional further actions to support the Council to collectively Carbon Reduction Plan and provide inspection, planning for climate change incident management and adaptation in the future. maintenance services on the Main Roads network. 8 Customer Service and Community Relationships

The best way of summing up our performance in the area of community relationships during 2010–11 is that the annual Community Perception Survey showed a 97.1% satisfaction level; the bi-annual Stakeholder Satisfaction Survey had a 92% rating and the Customer Service Index had a score of 89.21%.

These are impressive results and show the continuing focus on relationships at all levels, as well as an embedded customer service ethos. During the year we reviewed and reworked our Customer Service Charter focusing on a whole of organisation approach and firming up our strong commitment to providing timely and quality service to our customers.

The People of Main Roads are Main Roads

Throughout the year we have continued to develop our current workforce as well as applying a concerted effort in “Creating our Workforce of the Future”. This has required implementing a range of innovative, leading edge initiatives based on a philosophy that people are the key to a competitive edge. Some of these initiatives included:

Completion of the competency based development and progression system pilot for Engineering Associates A strong focus on promoting diversity including implementing initiatives in our “Road to Diversity” policy and the creation of a “Women in Management” policy and strategy Ensuring we recruit the right people through our improved recruitment processes including on-line applicant tracking to review progress of a vacancy and recruitment timeliness measures to support transparency in recruitment.

The past twelve months saw a formal transition in our management of the Occupational Safety and Health function to integrate with the Health and Well-being function to create the new Health, Safety and Well-being program. Main Roads Annual Report 2011

We achieved re-certification of our Occupational Safety and Health Management System to Australian Standard 4801 and this continues to be complemented by the WorkSafe Plan. We currently hold WorkSafe Gold certification at an organisational level and it was particularly pleasing to have our Infrastructure Delivery Directorate achieving a pinnacle in OSH with the award of a WorkSafe Plan Platinum Certificate.

Sun Mandala artwork on Mandjoogoordap Drive, Mandurah.

9 Looking Ahead

The 2011–12 financial year will be an exciting one for the State and for Main Roads. With a total budgeted cost of services of almost $1.5 billion and a capital works budget exceeding $600 million, the pressure will be on to continue to deliver to our well known and respected high standards.

There are significant major Last year was the first year works in progress including of the new arrangements in the the transport portfolio and through Belmont, the Great we are starting to see the Eastern and benefits of greater collaboration Interchange; the Mirrabooka/ and consultation with our Reid Highway intersection and partners in delivering Transport the third lane project on the infrastructure and services Kwinana Freeway. There is also to the people of Western a significant list of projects put Australia. The delivery of the out to tender towards the end Perth and Peel Transport of the 2010–11 year, including Plan and the State Freight the Port Hedland project on the Strategy will ensure the needs Great Northern Highway; the of the community and industry Bunbury Port Access Project are met with an effective, and the soon to be released efficient and integrated Esperance Port Access transport system. Corridor. We are also planning for the largest project ever I extend my thanks to all the undertaken by Main Roads, people in Main Roads who the Gateway project which helped make 2010–11 a very will upgrade the road network successful year. It is their around the Perth Airport. dedication, commitment, enthusiasm and professionalism A focus for 2011–12 will be to that continues to keep Main improve the provision of quality, Roads at the forefront of State timely and easily accessible Government agencies. road user information to enable our road users to make better and more informed travel decisions. This will be particularly important as City based projects such as the Menno Henneveld Perth Waterfront, Northbridge Managing Director Link and the Great Eastern Highway commence.

Bridge construction at the intersection of Roe Highway and Great Eastern Highway.

10 Remembering Don Aitken Ao, Iso

Main Roads Commissioner 1965–1987

Main Roads staff were saddened to hear about the passing of our former long serving Commissioner, Don Aitken in September 2010. Don joined Main Roads in 1946 as one of the youngest Engineers to be ever employed and went on to serve as Commissioner for 22 years from 1965 until his retirement in October 1987. He was awarded the Imperial Service Order in 1977 and inducted into the Order of Australia in 1987.

As Commissioner, Don oversaw a period of rapid expansion of the road network across the breadth of the State. Iconic projects such as the Hamilton Interchange, North West Coastal Highway, , , the Mount Henry Bridge, Kwinana Freeway, the national Highway expansion The late Don Aitken (second from left). and the Canning Interchange were advanced under He developed stronger He was a formidable member his watch. relationships with Local of the Main Roads team Government and ensured and gained great respect by It was not just in road that the transport services all who had the pleasure of construction that Don led provided to our regions were working alongside him by Main Roads in making its mark. foremost in Main Roads encouraging staff to extend He also drove the introduction work. Don also held many themselves professionally to and adoption of technology, prestigious positions in various provide innovation to Main including positioning Main capacities. He was elected to Roads. He lived the ideal Roads as a leader in the Senate of the University of of professional work ethics,

information technology and Western Australia in 1967, and innovation of thought and Main Roads Annual Report 2011 computer aided design. then elected as the Senate’s technology and the constant He also placed a key focus Chancellor in 1981. He was at strive to achieve more – more on the training, development one time President of the Road for one’s self and more for and education of Main Roads Engineering Association of Asia one’s work. Don’s legacy is employees and ensured their and Australia. such an invaluable part of involvement in national and Main Roads’ history that our international road associations. East Perth office was named Don firmly believed that people in his honour in 1993. should be given opportunities to develop, stretch and test Don will be remembered as the their abilities. “down to earth” professional who contributed above and beyond towards the success of Main Roads and the State. 11 Our Corporate Executive Team

Each member of the leadership team heads one of the corporate areas responsible for managing the business. This team provides the direction that ensures we provide safe and efficient road access to the community.

Leadership Team Change

During the year Gary Norwell, formerly Executive Director Strategic Asset Management left Main Roads after more than 43 years of service Phil Ladner, formerly Executive Director Infrastructure Delivery transitioned to Phased Retirement and has taken up the role of Executive Director Project Delivery Development Menno Henneveld John Marmion, formerly Managing Director of Main Roads Executive Director Regional Services, Menno has been with Main Roads for 9 years. Previous roles has transitioned to a include a 38-year career in the water industry. Menno holds a regional role as Project Bachelor of Engineering (Civil) from the University of Western Director focusing on the Australia (UWA), a Postgraduate Diploma in Administration from deployment of Integrated Curtin University; is a Fellow of Engineers Australia; the Australian Service Arrangements. Institute of Company Directors; the Chartered Institute of Logistics and Transport, and the Customer Service Institute of Australia. Menno chairs Main Roads Corporate Executive and Management Review and Audit Committees. He also holds many positions including Chair of the Austroads International Committee and in 2006 was appointed Australia’s First Delegate to the World Road Association where he is a member of the Executive Committee and is the Chair of the Communications and International Relations Commission. He is also Chair of the National Heavy Vehicle Regulator Project Board, a member of the National Engineers Registration Board, the ROADS Foundation and the Planning and Transport Research Centre. Menno recently achieved recognition for his 43 years of service to the water and road transport industries by being awarded a Fellowship of the Australian Academy of Technological Sciences and Engineering.

12 Rob Giles Peter Woronzow Director Executive Director Strategic Relationships Finance & Commercial Services

Rob has been with Main Roads for 38 years. Peter has been with Main Roads for more than 30 Previous appointments include Director years. Previous appointments include senior leadership Budget and Programming, Director Heavy positions in commercial management, supply and Vehicle Operations and Information Systems transport and legal and commercial services. Development Manager. In 2009, Rob was a Peter holds a Bachelor of Arts (Economics), member of the interim Corporate Executive a Graduate Diploma in Public Sector Management, of the Department of Transport during the and studied accounting and management at the separation of the Department of Transport University of Western Australia. Peter is a member from the former Department for Planning of CPA Australia and is a Fellow of the Institute of and Infrastructure. Public Accountants. His Directorate is responsible His Directorate is responsible for managing the for developing and managing financial, commercial areas focused on Government and external and corporate solutions that support achieving relations, community engagement, road user Main Roads outcomes. and customer services, and public affairs. Peter chairs the Main Roads Business Improvement A key role of this group is to develop and and Budget Committees. He also holds positions ensure strong corporate relationships with on the Whole of Government Steering Committees some of our key stakeholders. Internally, an for the Centre of Excellence and Innovation in important role is to drive improved customer Infrastructure Delivery (CEIID) and the Gateway service, collaboration, inclusiveness and Review Process and has played a lead role in the engagement across Main Roads. Fiona Stanley Hospital procurement process. He has previously held positions on the Board of the Rob’s Senior Management Team Southern Gateway Alliance responsible for the new Perth to Bunbury Highway, was Chairman of the Manager Government & External Relations, Steve Potter Board of the associated Mandurah Entrance Road

Manager Public Affairs, Dean Roberts Main Roads Annual Report 2011 project and is also on the Board of the Perth City Manager Road User & Customer Service, Dennis O’Reilly Link Project. Manager Community Engagement & Stakeholder Relationships, Tony Missikos Peter’s Senior Management Team

Manager Finance Services, Phil D’Souza Manager Property Management, Greg Fraser Manager Supply and Transport, Scott Spicer Manager Legal & Commercial Services, Murray Robinson Manager Information Management, Geoff Wilson Manager Business Performance, Alan Colegate

13 Leo Coci Doug Morgan Executive Director Executive Director Infrastructure Delivery Planning & Technical Services

Leo has been with Main Roads for 34 years. Doug has been with Main Roads for 23 years. Previous appointments include senior positions Previous appointments include Director Heavy in areas such as bridge design, road planning, Vehicle Operations, Traffic Operations Manager project management and contract management. and Project Engineer (). Leo holds a Bachelor of Engineering (Honours) Doug holds a Bachelor of Engineering (Electrical) and a Master of Business Administration from and a Masters of Business Administration the University of Western Australia and is a and is a member of Engineers Australia. member of Engineers Australia. His Directorate is responsible for contributing to sustainable integrated transport through His Directorate is responsible for delivering high providing engineering, environmental and asset value and complex road infrastructure projects management expertise. and is also responsible for the development of project delivery capability in the organisation. Doug chairs the Main Roads Corporate Safety, Health and Well-being Committee. He also holds Leo’s Senior Management Team a position on the South Metro Connect Board and has represented Main Roads on the PBS Director Major Projects, Dave Thomas Review Panel and Austroads Freight Taskforce. Director Infrastructure Delivery Services, Bruce Cunningham Doug’s Senior Management Team Manager Business Development, John Robertson Manager Road & Traffic Engineering,Rob Grove Manager Asset and Network Information, Steve Boston Manager Materials Engineering, Dave Harris Senior Engineer Structures, Jock Scanlon Manager Road Asset Planning (acting), Greg Campbell Manager Environment, Murray Limb Manager Road Planning, Lindsay Broadhurst Business Manager (acting), Michelle Rymer

14 John Erceg Des Snook Executive Director Executive Director Regional Services Road Network Services

John has been with Main Roads for 28 years. Des has been with Main Roads for 32 years. Previous roles include Regional Manager Previous appointments include Executive Gascoyne, Acting Director Heavy Vehicle Director Urban Roads; Operations Manager Operations and Manager Road Network North; and Regional Manager in Wheatbelt Operation. John holds a Bachelor of Engineering South and Pilbara regions. (Civil) from the University of Western Australia. Des holds a Bachelor of Engineering (Civil) His Directorate is responsible for road and is a member of Engineers Australia and asset management, network operation and the Australian Institute of Company Directors. maintenance and capital delivery throughout His Directorate is responsible for providing Western Australia. These services are delivered strategic and functional leadership in road from our 10 regional offices. John has also network operations, enabling our community to represented Australia on the World Road benefit from safe, reliable and efficient journeys. Association Management of Road Network Des is a member of the Road Safety Council, is Operations Technical Committee and Main a Director on the Board of Transport Certification Roads on the Austroads Network Taskforce. Australia Ltd and a member of the Ministerial Heavy Vehicle Advisory Panel. At a national John’s Senior Management Team level Des is the State’s representative on the Reference Group for the development and Director Operational Asset Management, Brian Noble implementation for the National Heavy Vehicle Director Regional Operations (acting), Peter Sewell Regulator and the State’s representative Director Metropolitan Operations, Ray Seman on the national Productivity and Efficiency Director South West Operations, Brett Belstead Standing Sub-Committee. Regional Manager Great Southern, Andrew Duffield

Regional Manager Gascoyne (acting), Ernie Reynolds Des’ Senior Management Team Main Roads Annual Report 2011 Regional Manager Goldfields–Esperance,Shane Power Manager Traffic Operations & Services (acting), Regional Manager Kimberley, Peter Podlaha Albert Symcox Regional Manager Wheatbelt South, Bernie Miller Director Heavy Vehicle Operations (acting), Pascal Felix Regional Manager Wheatbelt North, Gerald Morey Manager Road Safety, Maurice Cammack Regional Manager Pilbara, Ian Fennell Manager Road Network Operation Management, Regional Manager Mid West, Tim Glenister Tom McHugh Manager Business Management Branch, Martin Moen Stakeholder Relationship Manager, John Clydesdale Program Development Coordinator, Jana Geisler

15 John Taya Bob Phillips Executive Director Director Organisational Development Budget & Financial Planning

John has been a member of Corporate Executive Bob has been with Main Roads for 23 years. for more than 10 years. Previous appointments Previous appointments include 22 years’ include Executive Director Human Resources, experience in senior accounting positions working for the Department of the Premier and at the WA College of Advanced Education Cabinet, lecturing at the University of Western (now Edith Cowan University) and West Australia Graduate School of Management Australian Newspapers. and the Curtin University Graduate School Bob holds a Diploma in Accountancy and a of Business. Graduate Diploma in Professional Accounting John holds a Bachelor of Commerce and and is a Certified Practising Accountant and a Master of Industrial Relations from the Registered Taxation Agent. University of Western Australia. His Directorate His Directorate is responsible for contributing to is responsible for facilitating the fulfilment of the development, management and preparation personal and corporate goals through strategic of the budget and programming task, the annual planning and aligning the development of people, budget and forward works program and liaising relationships and an innovative work environment with the Department of Treasury and Finance to Main Roads’ direction. and with the Commonwealth Department John chairs the Main Roads Corporate of Infrastructure and Transport. He also has Development Committee. He also holds position responsibility for managing the State Road on the boards of the ROADS Foundation, the Funds to Local Government Agreement with the Chair of the Management Advisory Board of WA Local Government Association. Curtin University, on the Advisory Board of the Bob holds positions on the State Road Funds to UWA Engineering Futures Foundation and is a Local Government Advisory Committee and also member of the Austroads Capability Taskforce. the Federal Black Spot Consultative Panel.

John’s Senior Management team Bob’s Senior Management Team Manager Employee Relations, Michelle Bastian Manager Project Programming, Mike Cosson Manager Organisational Review & Coordination, Program Manager, Trevor Dyer Neville Willey Budget Manager, Kevin Pethick Manager Human Resource Services, John McKelvie Organisational Development Manager, Melissa Phillips Talent and Development Manager, Peter Reichert Manager Corporate Development, Alison Hall Occupational Health and Safety Manager, Michael Leeks

16 Iain Cameron Executive Director Office of Road Safety

Iain has been with the Office of Road Safety for 11 years. Previous appointments include various roles with the departments of Education and Health and Edith Cowan University. Iain holds a Bachelor of Physical Education and Diploma of Education from the University of Western Australia and a Post-graduate Diploma in Health Promotion and Master of Public Health from Curtin University. His office is responsible for providing policy and strategy advice and support to the Road Safety Council and Minister for Road Safety on measures to reduce road trauma on WA roads. This includes monitoring and reporting on progress, delivering road safety education campaigns and working collaboratively with agencies and stakeholders to coordinate implementation and to administer the Road Trauma Trust Account. Iain holds a position as an Independent Director on the Board of the Australasian New Car Assessment Program (ANCAP) and the Road Safety Council.

Iain’s Senior Management Team Main Roads Annual Report 2011

Director Strategic Communications, Roger Farley Director Policy and Strategy, Jon Gibson Principal Financial Officer,Paul Gregson Manager Business Coordination (acting), Casey Jeffrey

17 Finance Overview

Key Highlights

$1.2 Billion of Services Delivered

$2.4 Billion Increase in the Value of Infrastructure Assets

$383 Million Invested in Capital Works

Over the 2010–11 financial year, the value of assets under our control increased by $2.4 billion to almost $41 billion including $39 billion representing our roads and related assets. During the year we invested $383 million in new roads and other infrastructure assets, a further $814 million was spent on asset management, maintaining the road network across the State, Grants and Subsidies to Local Government and other Bodies and depreciation of the road network.

Income Funding Sources 2010–11 We received a total income of $1.086 billion from various funding sources some $ Million of which include $788 million State Appropriations; $18.7 million from the Road Trauma Trust Account, $13 million 788.365 State in recoups under Western Australian 196.666 Commonwealth Natural Disaster Relief Arrangements and $196.6 in million grants received from the 84.100 Other income Commonwealth Government. 16.439 State-other

Assets

The value of our assets as at 30 June 2011 Total Assets was $41 billion, an increase of $2.4 billion $ Billion over the previous year. A break-up of the different asset categories and their written 23.053 Land within road reserves down replacement costs is illustrated here: 11.893 Roads

3.194 Bridges 1.976 Non infrastructure

0.695 Other assets

18 Expenditure Total Expenditure by Type 2010–11

During the year we invested 400 just under $1.2 billion in the 350 road network delivering our 300 services to the community. 250 This graph shows a breakdown 200 of that investment: 150 100 Expenditure $M 50 0 e and cost capital finance expense services loan and ants and replaced subsidies employe gr expenditure depreciation amortisation benefits and supplies and superanuation assets retired/

Program Management Expenditure by Program 2010–11 $ Million We deliver Government goals through a Program 581.476 Maintenance Management approach, further 220.559 Road efficiency information on each Program including details of the projects 112.827 State development delivered can be found in the 99.603 Road safety Key Operations section of 96.641 Road management this report. A breakdown of 40.357 Community access expenditure by Program is illustrated here: 25.195 Office of road safety

Financial Targets: Actuals compared to budget

The following table provides a comparison of the financial targets and outcomes against criteria included in the Resource Agreement between the Commissioner of Main Roads, Minister for Transport and the Treasurer. Target(1) Actual Variation(2) $000 $000 $000 Total Cost of Services 1,205,443 1,197,252 8,191 Net Cost of Services 904,474 916,522 (12,048) Total Equity 39,370,273 40,566,289 (1,196,016) Main Roads Annual Report 2011 Net increase / (decrease) in cash held (10,417) (40,383) 29,966

Notes: (1) As specified in the latest budgets statements relating to (c) The variation in relation to Total Equity relates estimates for 2010–11. mainly to revaluation increases in the value of Road Infrastructure Assets as part of the comprehensive (2) Explanations of variations. revaluation required under Accounting Standards (a) The variations in relation to Total Cost of Services to prevailing market based written down can be mainly attributed to claims by Local replacement costs. Government for road project grants being lower (d) The decrease in cash being higher than budgeted than expected. can be attributed to a lower level of capital grants (b) The variation in Net Cost of Services relates to a being recouped from the Commonwealth under the lower level of capital grants being recouped from Nation Building Program, as a result of lower rates of the Commonwealth under the Nation Building expenditure on Commonwealth funded projects. program, as a result of lower expenditure rates on Commonwealth funded projects. Further explanations are also contained at Note 41 of the Financial Statements. 1919 Our Scorecard Key Key Performance Indicators are an We are achieving our goals integral part of managing outcomes in Satisfactory result – areas that have been identified as critical progress monitored to our business. In depth description of Desired results not achieved the results for each measure can be found – taking action at the corresponding page reference for Target each indicator.

Level of Achievement Status Ref Road Safety

% Community satisfaction of road safety 95% 110

Black spot location indicator 10.6 111

% of contracts completed on time 61% 111

% of contracts completed on budget 88% 111

Office of Road Safety

% Effectiveness of road safety 100% 112 awareness campaigns

% of ORS projects completed on time 90% 112

% of ORS projects completed on budget 88% 112

State Development

Average return on construction expenditure 2.7 116

% of contracts completed on time 71% 116

% of contracts completed on budget 100% 116

Community Access 120 % of the year that 100% of the Main Roads’ 85% State road network is available

% Community satisfaction with 120 90% cycleways and pedestrian facilities

120 % of contracts completed on time 50%

% of contracts completed on budget 100% 120

Chester Pass Road, Albany.

20 Level of Achievement Status Ref Road Efficiency; Road Management

% Community satisfaction 97% 113

B Double – 27.5 m 96% 113

% Road network Double RT – 27.5 m 96% 113 permitted for use by heavy vehicles Double RT – 36.5 m 78% 113

Triple RT – 53.5 m 44% 113

Roads 89% 114

% Network Strength 95% 114 configuration Bridges Width 94% 114

% of contracts completed on time 57% 114

% of contracts completed on budget 86% 115

Average $ cost of network management per million vehicle km travelled $3,518 115

Maintenance Main Roads

% Smooth travel exposure 98% 117

% Community satisfaction road maintenance 94% 117

% Preventative maintenance indicator 85% 118 Annual Report 2011

Traffic Signals 99.1% 119

% availability of Road Lighting 97.4% 119

Emergency Phones 99.9% 119

Average $ cost of network maintenance per lane kilometre of road network $6,083 119

21 Key Operations

Achieving Government Goals

The Government Goals

The Western Australian Government has identified four goals that Main Roads must achieve in delivering its services to the community. Main Roads achieves the delivery of the Government’s goals through a Program Management approach. There are seven Programs that drive outcome-based decision making to achieve agreed business outcomes. Key performance measures assist the Government, Main Roads and the community in determining the impact on the delivery of services within each Program.

The following table shows the relationship between the Government’s Goals and the services and outcomes we deliver in order to achieve those Goals.

Government Goals Main Roads Outcomes Main Roads Program Page Ref. Road Safety 24 A safe road environment Outcomes Based Office of Road Safety 46 Service Delivery Reliable and efficient movement Road Management 51 of people and goods Road Efficiency 29 State Building – Facilitate economic and regional State Development 33 Major Projects development Stronger Focus A well maintained road network Maintenance 38 on the Regions Social and Improved community access and Environmental Community Access 43 roadside amenity Responsibility

Further information on achievements and progress in each of our programs is contained throughout this report as referenced above.

Significant Challenges and Opportunities

The road network plays a vital role in our State’s economic prosperity, people’s quality of life and access to community services. We have a significant part to play in assisting industry and Government in unlocking the potential benefits both economic and social arising from the strong resources economy. Recent reports indicate that the State’s annual engineering construction investment is now six times that of the early 2000’s and current forecasting is predicting that construction will reach a record level of investment of $31 billion by 2015. This reflects the significant impact that the large resource projects are having on Western Australia as it now represents one third of Australia’s total construction investment.

22 Economic a whole-of-transport response adapt our assets to protect in order to maintain the quality against the long-term risks As an organisation we need to of life and meet the access of climate change and to ensure that we continue to be needs of individuals and the look for opportunities to offer well placed in order to achieve community. We have a clear benefits to the community. the delivery of more than and important responsibility in Climate change is predicted $5.8 billion in services over contributing to the solutions to have a significant impact on the next four years including that will address these growing transportation affecting the way $2.2 billion of capital works concerns. It will be a great we plan, design, construct, and distributing $630 million in challenge to provide services operate and maintain our grants to Local Government. that will enable the community infrastructure. Decisions to make more informed travel taken today, related to the Working with Portfolio Partners, decisions and to achieve redesign and retrofitting of Local Government and other better integration of transport existing infrastructure, or the agencies Main Roads will be modes to improve productivity, location and design of new working to deliver a range efficiency and safety. We will infrastructure, will affect how of significant major projects be strongly supporting the well our network is able to across the State. Whilst major deployment of the Public adapt to climate change into capital projects form a large Transport for Perth 2031 the future. part of the budget it remains Plan and are committed to imperative to ensure that we maintaining a transport system Looking Ahead are getting the best value and that supports shared access outcomes from the equally including walking, cycling, To assist in meeting these important smaller initiatives on public transport and use of all challenges and expectations our program, especially in the forms of vehicles. we will be developing rural areas. In addition we need and deploying a four-year to ensure that the objectives operational planning process identified in our Integrated Environmental built on meeting our strategic Service Arrangements are Our natural environment is and future needs. The aim achieved as almost $1.4 billion a valuable asset subject to will be to achieve greater is invested over the next many pressures including the integration of strategic, four years in maintaining the loss and degradation of native workforce, operational and road asset. Whilst we are still vegetation which is seen as a financial planning along with seeking to understand the full long-term issue. Developing ongoing activities to better implications of the Carbon Tax and managing an extensive guide the identification and it is apparent that it will have road network creates pressure allocation of resources into the an impact in terms of costs and yet is also an opportunity future. This process is under associated with management to make gains in terms of development and will be rolled of the network and the delivery biodiversity, efficiency of use of out with the 2012–13 Business of our projects. natural resources and reducing Planning process. carbon-based emissions.

Social In addressing environmental During the next twelve months Main Roads Annual Report 2011 challenges, a key focus will be we will see the conclusion Western Australia continues to continuing development of our of our Strategic Plan, 2k12. have one of the fastest growing people to be more effective During the coming year we and changing population bases in fulfilling their environmental will be reviewing what was in Australia, largely driven by responsibilities and achieved as work commences migration from both overseas endeavours. We will be seeking with partners, stakeholders, and interstate. The community more consistent outcomes in customers and staff as we landscape is changing and with land rehabilitation, roadside consider our future direction. that so are community needs. habitat preservation and in Together we will determine Increasing congestion and reducing carbon emission what we need to focus on as serious road safety concerns intensity across our business. we work to deliver integrated coupled with the highest transport solutions for all per capita rate of registered In terms of climate change Western Australians. vehicles in Australia will require we are proactively looking to 23 Road Safety

Providing a Safe Road Environment

Outcome

The Road Safety program seeks to reduce the State’s road fatality rate to the lowest in Australia, minimising road factors contributing to road trauma and reducing the serious crash injury rate.

At a Glance

2011 100 2010 162 2009 149 2008 89 0 50 100 150 200 $ million

Expenditure $100 million

Key Performance Indicators

2011 Target 2011 Actual % Community satisfaction of road safety 90% 95%

% of contracts completed on budget 90% 88%

Year WA Road Fatalities WA Hospitalisations 2007 235 2,786

2008 205 2,891

2009 190 2,568

2010 193 2,468

24 Award

Recognition Commission

erth Bunbury Highway Award Beaufort Street • Insurance Safer Roads and Roadsides – New P Introduction Speeds – variable speed trial. The Road Safety program results in infrastructure that will provide a safe environment for all road users. It includes all State and National Black Spot projects and other projects aimed at improving the road network that have safety as the main driver. This includes works such as intersection improvements, overtaking lanes, rail crossings and bridge safety improvements. Some of the key projects and road safety initiatives delivered through the program are shown below.

Achievements

Total 2010–11 Completion Project Cost Expenditure Date Description ($ million) ($ million) Gascoyne North West Coastal 2.5 2.3 December Construction of a left turn pocket, Highway 2010 overtaking lanes, widening of existing lanes and resurfacing various locations Goldfields–Esperance South Coast / 0.6 0.3 January 2011 Modify intersection to install Coolgardie Esperance central median and splitter island Highway Intersection

South Coast Highway 0.4 0.4 March 2011 Modify intersection and (Shark Lake seal shoulders Intersection)

South Coast Highway 0.4 0.4 March 2011 Modify intersection, seal

(Dalyup Intersection) shoulders and construct Main Roads Annual Report 2011 two bus bays Great Southern 7.2 4.3 May 2011 Realigning, reconstruction and (Hay River Bridge widening west of the Hay River to Denmark Bridge including passing lane for Mt Barker Road) westbound traffic

South Coast Highway 0.8 0.6 March 2011 Added through-lane at the (Bakers Junction) junction and right turn treatment at Bonaccord Road

25 Total 2010–11 Completion Project Cost Expenditure Date Description ($ million) ($ million) Metropolitan South West .9 0.6 January 2011 Installation of traffic signals and (William Street – upgrade of the pavement, street Bedfordale Hill Road lighting and pedestrian facilities Intersection)

Karrinyup Road 1.5 1.5 April 2011 Lowering crest in the road and (Morley Drive improvement of pedestrian intersection with facilities McGilvray Avenue)

Canning Highway 1.3 0.6 April 2011 Widening the intersection and (Ardross Street extending the right turn lanes Intersection) Mid West Indian Ocean Drive 1.8 1.8 July 2011 Realignment of curves

Wubin–Mullewa Road 0.8 0.8 May 2011 Widening road reserve, realignment of reverse curve and widening seal Pilbara Marble Bar Road 6.0 2.0 December Upgrade existing road from 2010 unsealed to low cost sealed road

Marble Bar Road 2.0 2.0 September Widening seal and installation of 2010 white line marking South West South Western 3.2 3.1 April 2011 Reconstruction and widening to 9 Highway m seal with 1 m sealed shoulders (Balingup North)

Bussell Highway 1.4 1.2 September Installation of traffic control (Washington Avenue 2010 signals Intersection) Wheatbelt North Indian Ocean Drive 6.1 6.1 December Construction of 4 passing Wilbinga to Seabird 2010 lanes, 25 km of seal widening and improvements to various intersections

Chidlow–York Road 0.3 0.3 June 2011 Installation of audible edge lines Wheatbelt South 3.9 3.9 April 2011 Widening one lane seal to 8 m (Mundays Section) and edge line

26 Black Spot Programs Looking Ahead

A total of 171 projects were funded by the State Black Spot The State Black Spot Program, with 26 projects on State roads and 145 projects on Program will have Local Roads, representing an investment of $20 million. $10 million for 26 projects In addition 49 projects were funded from the Nation Building on State roads and Black Spot Program representing an investment of $6.5 million. $10 million for 147 projects on Local roads Railway Level Crossing Upgrade Program The Federal Black Spot Program will have As part of the Federal Government’s Economic Stimulus package $7.8 million for 49 projects $14.1 million was provided for the National Boom Gates for The Safer Roads and Level Crossings Program. This year saw the balance of the Bridge Improvements 62 crossings reach practical completion and commissioning. Program will have funding In addition the State allocated $12.3 million to ensure railway level of $35 million crossing safety. Works undertaken include the refurbishment of 26 crossings with up to date technology, 4 crossings upgraded Completion of works to active control (flash lights and boom barriers) and the to extend Reid Highway installation of LED lights at 31 crossings to increase the flashing from West Swan Road to warning light visibility. Great Northern Highway.

Morley Drive / McGilvray Avenue intersection. Main Roads Annual Report 2011

27 Case Study

Reid Highway Overpass Eliminates Worst Metropolitan Crash Site

The Reid Highway overpass at Alexander Drive project was completed in June 2011 bringing to an end the interchange “black spot” status. There were 719 crashes at the intersection in the 10 years leading up to 2010. Twelve people were seriously injured and another 121 people received medical attention. These crashes cost the community more than $10 million in hospital and emergency care and property damage.

Hon Minister for Transport, Troy Buswell, MLA officially opening the Reid Highway Overpass at Alexander Drive on 15th April, 2011.

More than 85,000 people as part of this project, with Having residents nearby meant use the interchange each day on-ramps widened to allow the contractor had to minimise and their experience will now for future ramp metering and construction vibration and be vastly improved with less the bridges constructed to noise, especially during night congestion, reduced delays their ultimate width. Traffic work. Furthermore, the bridges, and improved safety. The new counting stations and traffic road widening and tie-ins interchange also features a cameras were included as had to be constructed whilst widening of Alexander Drive part of Main Roads’ Intelligent minimising congestion to the to include bus lanes in both Transport Systems initiative. 85,000 road users each day. directions, and a double This meant limited day-time lane right-turn for southbound The $40.6 million project closures and some weekend vehicles on Alexander Drive was funded by the State and and night work. wanting to head west on Reid Federal Governments, with a Highway. The bridges will contribution from the Public A major milestone in November not only provide immediate Transport Authority. A design 2010 was the erection of the benefits to the public, but will and construct contract 16 bridge beams over one also give the intersection the was awarded to Abigroup weekend, with Alexander Drive capacity to handle expected Contractors and construction closed to traffic and detours growth in traffic over the next began in May 2010. around the site. A major two decades. advertising campaign and Construction was not thorough traffic management Noise and screen walls have without its challenges. A high minimised congestion during been included to improve pressure gas main ran along this detour. Re-vegetation of the amenity for nearby residents AlexanderDrive, directly through project site is now underway. and the bridge abutments and the worksite requiring the use of noise walls include colourful special construction methods, public art. Future planning modified pavement design has been considered and encasement.

28 Road Efficiency

Providing Reliable and Efficient Movement of People and Goods

Outcome

This program seeks to improve the efficiency, capacity and utilisation of the existing road network as part of a total transport network.

At a Glance

2011 221 2010 197 2009 241 2008 166 050 100 150 200 250 $ million

Expenditure $221 million

Key Performance Indicators

2011 Target 2011 Actual Result Main Roads Annual Report 2011 % Community satisfaction 90% 97%

% Perth freeway performance 80% 69%

% of contracts completed on budget 90% 86%

29 Introduction

The Road Efficiency Program provides infrastructure that has improvements in freight, levels of service or traffic management as the main driver. This includes projects that deliver geometric improvements, road widening, bridge strengthening and retrofitting of Intelligent Transport System capabilities. Some of the key projects and achievements delivered through the program are shown below.

Achievements

Total 2010–11 Completion Project Cost Expenditure Date Description ($ million) ($ million) Gascoyne Minilya Exmouth Road 1.1 0.1 August 2011 Construction of road train (Exmouth) assembly areas including sealed surface, lighting and fencing Goldfields–Esperance 0.5 0.5 May 2011 Upgrade Heavy Vehicle Rest Area including seal hardstand area

Goldfields Highway 0.4 0.4 February Upgrade Heavy Vehicle Rest Area 2011 including seal hardstand area and installation of shade shelters and furniture

Coolgardie Esperance 0.3 0.3 November Upgrade Heavy Vehicle Rest Area Highway 2010 including seal hardstand area and installation of shade shelters and furniture

Great Eastern Highway 0.3 0.3 April 2011 Upgrade intersection and (Coolgardie Tip Road) seal shoulders Great Southern Chester Pass 7.4 6.8 May 2011 Reconstruction and widening (Albany – Lake Grace) including the replacement of Road Moingup drainage, widening of safety Springs zones, upgrading of roadside stopping places and the provision of increased lines of sight for more passing opportunities Metropolitan Reid Highway 40.6 24.9 June 2011 Construction of two bridges (Alexander Drive to carry Reid Highway over Intersection) Alexander Drive and on/off ramps

Great Northern 40.7 7.6 December Widening, overlay and Highway 2010 reconstruction from Lennard Street to Haddrill Road

Great Eastern 112.6 28.9 April 2012 Construction of a grade Highway – Roe separated interchange Highway Interchange

Great Eastern 350.0 33.2 December Upgrade 4.1 km to a six lane Highway (Kooyong 2013 dual carriageway, on road cycle Road to Tonkin facilities, bus priority facilities and Highway) pedestrian paths 30 Total 2010–11 Completion Project Cost Expenditure Date Description ($ million) ($ million) Metropolitan (continued) Kwinana Freeway 3rd 58.0 3.6 March 2012 Widening to provide three lanes (Leach Highway lanes in each direction to Roe Highway)

Murdoch Drive/South 20.6 0.5 December Upgrade the intersection to cater Street Intersection 2013 for the increase in traffic volumes Upgrade as a result of the Murdoch Activity Centre and the wider precinct

Gateway WA – 950.0 7.1 2017 Upgrade of Perth Airport & between Great Eastern Highway Freight Access and Roe Highway; Leach Highway between Orrong Road and Perth Airport; and Orrong Road widening Pilbara 90.5 9.9 September Construction of 12.5 km of Duplication – Balmoral 2012 dual carriageway, cycle lane, Road West to Burrup intersection modifications at Rd Stages 2–6 various locations and a road bridge over Seven Mile Creek South West Muirs Road (Nyamup 13.8 2.0 March 2011 Widening and realignment Strachan Section) of seal to 8 m

Greenlands Road 12.8 3.9 May 2011 Construction of new alignment including and lighting

Coalfields Highway 7.6 7.2 May 2011 Reconstruction, widening and (Allanson to Collie overlay of existing alignment Section)

New WA Gateway a Step Closer Looking Ahead

Plans to revitalise and upgrade In a recent announcement, Continue work to extend the road network near Perth the Australian Government the dual carriageway Airport have moved closer with committed a further on Dampier Highway the launch of a $6.85 million $480 million of Federal funds westwards from Karratha consultancy contract for the conditional on the State towards the Burrup Gateway WA project. Known Government contributing Peninsula Road in Dampier as Gateway WA, the Perth $120 million. These funds

Widen and reconstruct Main Roads Annual Report 2011 Airport and Freight Access are in addition to the Nation 1.4 kilometre section Project was officially launched Building funds already of in 2010 by the former Minister committed to the project. between Wellington Dam for Transport, the Hon Simon Construction is anticipated Turn-off and Allanson O’Brien. The project involves to commence in 2012–13 to the upgrade of Tonkin Highway enable completion prior to Commence widening between Great Eastern Airport terminal consolidation. 7.2 kilometres of Mitchell Highway and Roe Highway; More information can be found Freeway northbound Leach Highway between on the Main Roads website. between Hepburn Avenue Orrong Road and Perth Airport; and Hodges Drive and Orrong Road between Widening of Kwinana Leach Highway and the Freeway to three lanes Graham Farmer Freeway. from Leach Highway to Roe Highway. 31 Case Study

Safety and Traffic Improvements for Chester Pass Road

Albany’s Chester Pass Road recently received a $7.4 million upgrade in order to improve the safety and traffic flow of a high priority section of the major thoroughfare. The road was badly damaged when a series of 1 in 200-year storms hit the area in 2005, 2006 and again in 2007 and 2008. The flow on effect from these four major events caused the cost of day-to-day maintenance activities to rise significantly in this section of the road network, which was indicative that an upgrade was long overdue.

The State Government The works also involved recognised Chester Pass replacing and improving road Road as an important freight drainage strictures bringing route in need of long overdue them up to current standards; improvements upgrades. removing an outdated bedlog Fulton Hogan Construction Pty timber constructed culvert; Ltd was awarded the contract improving the road’s horizontal for this project. The contract and vertical geometry; as was to rebuild and widen well as upgrading a tourist a 5.7 kilometre section of parking bay. To further Chester Pass Road through improve safety, additional the Stirling Range National passing opportunities along Park, a stretch of road also with additional width and known as the Moingup Springs an improved alignment section. The deteriorating were incorporated. aged pavement and road seal required reconstruction These works will provide safer and widening to meet our access for tourists into Stirling current standards. Range Drive and Toolbrunup Road and most importantly will The works were also significantly improve visibility undertaken to improve the in and out of the Moingup road safety and traffic flow to Springs camping ground. an essential link between the Port of Albany and the rural The works started in December agricultural area to its north. 2010 and were successfully The new and improved Chester completed in May 2011. Pass Road was widened from The State Government the existing 6 metre wide recognised this contract as seal to an 8 metre wide seal another example of a small on 11 metre formation. This to medium package of works provided two 3.5 metre traffic beings competitively tendered lanes, a sealed shoulder and a in line with the Government’s 1.5 metre unsealed shoulder. requirements that a minimum of $20 million of smaller road construction contracts be publicly tendered each year.

Chester Pass Road near Moingup Springs, Albany. 32 State Development

Facilitating Economic and Regional Development

Outcome

This program seeks to expand the road network in accordance with State and Commonwealth transport and land use strategies that will facilitate the economic and regional development of the State.

At a Glance 2011 113 2010 279 2010 2009 426 2010 2008 429 2010 0 100 200 300 400 500 2010 $ million 2010

Expenditure $113 million Main Roads Annual Report 2011 Key Performance Indicators 2011 Target 2011 Actual Result Return on construction expenditure (as an average) 2.1 2.7

% of contracts completed on time 90% 71%

% of contracts completed on budget 90% 100%

Chester Pass Road near Moingup Springs, Albany. 33 • WA

‘Innova

– Indian OceanSpatial Drive road ‘Overall tion and Commercialisation Award’ – • Indian Ocean Drive road Excellence 2010 Industry Award’ (CCF) Earth A in Civil Construction Civil • Alliancing – New Perth Bunbury Highway Project Contractors Awards Australasia Alliance Team Awards Outstanding Contribution Award wards Excellence – Advancement of Alliancing. Recognition Association Federation

Introduction of

The State Development Program includes most expansion, major infrastructure and bypass projects that have economic and regional development support as the primary driver. This program is predominantly made up of the largest and most complex works to be delivered. Some of the key projects and achievements delivered through the program are shown below.

Achievements

2010–11 Project Total Cost Expenditure Completion Description ($ million) Date ($ million) Goldfield–Esperance Esperance Port 120.0 1.4 December Reconfigure existing services, rail track Access Corridor 2013 and two lane road to facilitate the expansion of the Port. This includes closure of 2 level crossings and their replacement with grade separated crossings, a bridge linking Twilight Beach Road to the Esplanade; and a road bridge over the railway and a bridge connection between Harbour Road and Johns Street Kimberley Kununurra Heavy 7.0 0.8 December Planning for the heavy vehicle route Vehicle Route 2011 from to Weaber Plain Stages 1–2 Road, new bridge over Ord River (Planning and Design)

Metropolitan Roe Highway 20.0 8.5 January 2012 Project development for the Extension Project construction of 5 km of new dual Development carriageway Highway (Kwinana Freeway to )

Reid Highway/ 30.0 9.5 2012 Construct 2 Bridges to carry Reid Mirrabooka Avenue Highway over Mirrabooka Avenue and Interchange on/off ramps

34 Bridge construction at the intersection of Roe Highway and Great Eastern Highway.

2010–11 Project Total Cost Expenditure Completion Description ($ million) Date ($ million) Pilbara Great Northern 189.0 2.0 June 2014 An 8 km realignment of Great Northern Highway Highway to the North and West of the Realignment Port Wedgefield Industrial Area. Hedland A grade-separated interchange, a low level road bridge over South West Creek and a road over rail bridge South West Mandurah 155.0 17.5 October 2010 Design and construction of 6.5 km dual Entrance Road carriageway to provide a direct link from the Kwinana Freeway extension to

Bunbury Port 132.0 17.3 April 2013 Preconstruction activities and Access Road Stage land acquisition 2 and Bunbury Outer Ring Road Stage 1 Wheatbelt North Lancelin–Cervantes 98.7 12.1 September Construction of two lane sealed rural Stage 2 2010 road on green field site with side road (Indian Ocean Drive) connections to Nilgen, realignment of existing intersections, construction of Cervantes Road, and completion of the tie-in of Meadows to Mimegarra Road Main Roads Annual Report 2011 Looking Ahead

Construction of the Esperance Port Access project Construction of the reconfiguration of Great Northern Highway in Port Hedland Construction of Bunbury Outer Ring Road Stage 1 and Bunbury Port Access Road Stage 2 Commence the Reid Highway/ Mirrabooka Avenue Interchange.

35 Case Study

Indian Ocean Drive Opened to Traffic Nine Months Ahead of Schedule

After many years of planning and more than two years of construction, the much anticipated Lancelin–Cervantes Stage 2 sealed road known as Indian Ocean Drive officially opened on 19 September 2010. With the assistance of favourable winter weather, construction was able to continue at an accelerated pace and as a result, the road was completed approximately 9 months ahead of schedule. The final product is a testament to all who have been involved.

Indian Ocean Drive was officially opened on the 19th September 2010 by Premier Colin Barnett, MLA (second from left).

Following a traditional This arrangement not only The project involved the Welcome to Country by allowed Main Roads to construction of 56 kilometres Yued Elder, Charlie Shaw and enhance its own knowledge of sealed road linking Lancelin speeches by the Premier, and systems, but also most to Cervantes, providing the Hon Colin Barnett and former importantly, it provided the final section of Indian Ocean Transport Minister, Hon Simon opportunity to develop the next Drive linking Perth to Dongara. O’Brien, a plaque was unveiled generation of road builders. There were considerable cost and the road was officially The project has proved to savings on the project, which opened with a ribbon-cutting be an ideal training ground, allowed for the construction of ceremony. More than 250 enabling very experienced an additional 20 kilometres of guests participated in the employees to share their side roads and improvement opening celebration. experience and knowledge works on 9 kilometres of with 26 Main Roads cadets, Pinnacles Drive. Six stopping The ceremony was held south trainees and graduates. Menno places along the 56 kilometres of Cervantes, with a backdrop stated that he was extremely route have also been provided of spectacular ocean views, pleased to say that the project to encourage road users not to Main Roads Managing Director has been a success in setting drive when fatigued. Menno Henneveld praised the benchmark for future the Project Team for their projects and it is his goal In partnership with the dedication and commitment to undertake more directly Department of Environment to the first major road to be managed projects in the and Conservation and as an constructed under Main Roads years ahead. offset to the road traversing direct management for more two Nature Reserves and a than ten years. National Park, Main Roads constructed and funded the Nilgen Lookout; a viewing platform from a high point south of the Lancelin Defence Training Area.

36

Case Study

Mandurah Entrance Road (Mandjoogoordap Drive) Opens to Traffic Almost Three Months Ahead of Schedule

Construction of the $155 million Mandurah Entrance Road (MER) began in September 2009, with the road now known as Mandjoogoordap Drive opening to traffic on 7 October 2010, almost three months ahead of schedule. It comprises 6.5 kilometres of four lane dual carriageway providing motorists with a direct link between Mandurah and the Kwinana Freeway.

The Project achieved some significant milestones including:

Achieving more than half a million man hours without a Lost Time Injury Invested more than (L) Aerial view of the completed Mandurah Entrance Road (Mandjoogoordap Drive). $10 million into the (R) Mandurah Entrance Road features standout public art along the route. local economy

A new 220 metre tunnel was constructed to enable the Upgrading of local roads northbound carriageway to cross to the eastern side of the railway and intersections line and the existing tunnel at Mandurah Road was extended by Created a legacy within 170 metres to enable a roundabout to be constructed. The two the Marlee Reserve which lane roundabout has a centre island of approximately 56 metres in included walking trails, diameter and three legs including the new Mandjoogoordap Drive a boardwalk, fencing and Mandurah Road both north and south bound along with other and nesting boxes for minor connections. various animals Mandjoogoordap Drive ties It is expected that Recognised with an in with the Kwinana Freeway 10,000 vehicles will use Environmental Excellence extension via a diamond type Mandjoogoordap Drive each Award by the WA interchange that was created day, which will help to relieve Excellence Awards 2010 as part of the New Perth increasing traffic pressure and Simply the Best. Bunbury Highway project. congestion on local roads. Main Roads Annual Report 2011 The new road also straddles The road was funded by The project represents an the passenger railway line both the State and Federal important investment in the from Lakelands to Mandurah, Government and delivered by State’s transport network by separated by retaining walls Southern Gateway Alliance providing a free flowing route which have been presented (SGA), the same team that for Mandurah traffic resulting so as to provide a grand entry constructed the Kwinana in improved safety and to the area for rail patrons. Freeway extension and Forrest connectivity. It also provides Another standout feature of Highway. SGA is comprised immediate benefits to visitors the project is the two large of Leighton Contractors, to the Peel Region which is sculptural pieces of public WA Limestone and GHD, one of the nation’s fastest artwork complementing the working in partnership with growing centres. artwork on the retaining walls. Main Roads.

37 Maintenance

Providing a Well Maintained Road Network

Outcome

This program seeks to maintain the existing road and bridge network by maximising asset life and minimising whole of life costs.

At a Glance

2011 581 2010 520 2009 498 2008 476 0 100 200 300 400 500 600 $ million

Expenditure $581 million

Key Performance Indicators

2011 Target 2011 Actual Result % Community satisfaction with road maintenance 90% 94%

% Availability of traffic signals 99.6% 99.1%

% Smooth travel exposure 98% 98%

38 Introduction

The Maintenance Program covers the maintenance of all road, bridge and ancillary assets, road verges and reserves. Works include routine and periodic maintenance and reconstruction works where the primary reason is due to pavement failure. Some of the key projects and achievements delivered through the program are shown below.

Achievements

2010–11 Project Total Cost Expenditure Completion Description ($ million) Date ($ million) Gascoyne Regional - 14.3 June 2011 Term Network Contract network maintenance Goldfields–Esperance Regional - 19.8 June 2011 Term Network Contract network maintenance

Goldfields 0.93 0.93 December Resheeting of 8 km, upgrade of 4 Highway 2010 flood crossings and replacement of grid between Wiluna and Meekatharra Great Southern Regional - 13.8 June 2011 Term Network Contract network maintenance Kimberley Regional - 28.0 June 2011 Term Network Contract network

maintenance Main Roads Annual Report 2011

Gibb River 2.0 0.5 November Repair major flood damage to Road 2011 pavement and creek crossings

Great Northern 5.0 0.5 November Repair major flood damage including Highway (West 2011 the reinstatement of eastern guide Kimberley) bank at Fitzroy River Bridge, Fitzroy Crossing

Great Northern 4.5 2.5 September Repair major flood damage including Highway (West 2011 shoulder rehabilitation at Fitzroy Kimberley) Crossing, approaches to Bow River Bridge and pavement and side track for Big McPhee Bridge

39 2010–11 Project Total Cost Expenditure Completion Description ($ million) Date ($ million) Metropolitan Regional - 69.4 June 2011 Term Network Contract network maintenance

Various roads 7.8 7.5 April 2011 Maintenance including resurfacing backlog

Graham 2.9 2.9 April 2011 Maintenance including resurfacing Farmer tunnel approaches Freeway Mid West Regional - 28.9 June 2011 Term Network Contract network maintenance Pilbara Regional - 26.3 June 2011 Term Network Contract network maintenance South West Regional - 27.2 June 2011 Term Network Contract network maintenance

South Western 1.6 1.6 April 2011 Reconstruction of existing Highway 10 m formation (Waterloo Wireless Section) Wheatbelt North Regional - 20.6 June 2011 Term Network Contract network maintenance Wheatbelt South Regional - 14.7 June 2011 Term Network Contract network maintenance

40 Gascoyne Floods Kimberley Floods

A tropical low caused extensive A tropical monsoon system affected the Kimberley Region from flooding in the Gascoyne 11 to 22 March 2011. The heaviest rainfalls occurred in East Region and adjacent areas and North Kimberley with rivers such as the Durack, Pentecost, from 16 to 24 December 2010 Dunham, Ord, Bow (Wilson) and the Fitzroy all flooding. The which saw the Gascoyne Great Northern Highway was closed to all traffic from the 13 to River peak at 7.8 metres on 29 April 2011, with an estimated $39 million of damage caused 20 December. The North West to the road network. Big McPhee Creek Bridge also sustained Coastal Highway (NWCH) was structural damage during the floods. Initially access to the bridge closed from 17 December was restricted to daylight hours, however, this was increased to 2010 and re-opened to 24 hours under traffic management and engineering supervision traffic on 31 December with the exception of overweight and concessional heavy vehicles. 2010. The NWCH was extensively damaged over a 220 kilometre stretch resulting in approximately ISA Update Looking Ahead $14 million worth of repair works. Our own regional Integrated Services Commencing the targeted office was flooded resulting Arrangements (ISAs) replace resurfacing program to in staff initially operating from the existing eight Term Network address the backlog the Incident Manager’s home Contracts which have been in of maintenance works until temporary offices were place for the past ten years. across the State The ISAs are more than simply established on 21 December Maintenance of the State road maintenance contracts. 2010. Staff and contract road road network through They are arrangements crews carried out emergency the deployment of the based upon relationship works to enable NWCH to Integrated Service contracting principles and open. Main Roads Incident Arrangements (ISAs) Management process linked have been developed to effectively with the State provide integrated operational Continue works to Emergency Management asset management, recondition formation process ensuring coordination network operations and and gravel on Useless of appropriate resources and road maintenance services. Loop Road. effective communications and The key features of these information for road users. new arrangements include shared objectives; needs based approach to asset management planning; outcome focused; sustainable involvement of regionally based suppliers and Local Government, combining the Main Roads Annual Report 2011 best of the private and public sectors, flexibility and value for money, not just the lowest price. These new arrangements will service seven identified networks across the State and already five are in place and operational with the final two expected to be in place during the second half of 2011. For more information visit the Main Roads website.

Road maintenance works being conducted. 41 Case Study

Historic Agreement between Main Roads and Local Government

On 3 February 2011, Main Roads entered into an historic agreement with six members of the Mid West Regional Council, allowing them to collectively provide inspection, incident management and maintenance services on the Main Roads network.

Flooding in the Gascoyne Region.

The long-term, relationship- knowledge and ‘ownership’ between Mid West Regional based arrangements involve of the network, resulting in Council members and the Shires of Coorow, overall benefits for both the Main Roads. The Director Mingenew, Morawa, Mullewa, State and local road networks. of Operational Asset Perenjori and Three Springs. An additional benefit for the Management, Brian Noble Some 642 kilometres of local authorities is that, through and Regional Manager of the road is covered, providing the increase in workloads, they Mid West Region, Tim Glenister the opportunity for Local will be able to utilise resources led the key discussion. Government to deliver selected more efficiently in serving The successful conclusion minor capital works which their own networks. This will of these negotiations and the could see them sharing an be achieved by enabling the signing of the agreement have average of $1.5 million worth Local Government to increase resulted in a realisation of the of works each year on State the hours worked by some of strong aspirations of both Main roads in the region. their plant, hence reducing the Roads and Local Government average hourly costs. to work closer together, in a This is the first time a formal more coordinated manner agreement of this type The different Councils will work when managing the wider main has been entered into with in very close cooperation with roads and Local Government Local Government. A key the Main Roads Mid West and road network. objective of the agreement is Gascoyne Region Integrated endeavouring to assist with Services Arrangements (ISAs) It is indeed an historic sustaining communities in rural using common systems agreement and forms a model centres by maximising the use and processes. for other future agreements of locally based resources, between the State and Local and building local capability, The agreement, which is Governments for the delivery skills and knowledge. This will an outcome of the Main of road inspection, incident provide Main Roads with a Roads ISAs Development management and maintenance locally based workforce and Project, involved two years of services in other regions. will develop a high level of local discussions and negotiations

42 Community Access

Improving Community Access and Roadside Amenity

Outcome

This program seeks to improve personal mobility and community access needs on the road network.

At a Glance

2011 40 2010 31 2009 72 2008 110 020406080 100 120 $ million

Expenditure $40 million Main Roads Annual Report 2011 Key Performance Indicators 2011 2011 Result Target Actual % of the year that 100% of the State road network is available 70% 85%

% Community satisfaction with cycleways and pedestrian facilities 85% 90%

% of contracts completed on budget 90% 100%

43 • Engineers

2010 Engineering Excellence A High Commendation. ‘Engineering for Regional Introduction Communities Award’ Australia –

The Community Access Program Team Savannah Grea wards provides infrastructure including remote Recognition Kimberley Early Contractor access roads, pedestrian and cyclist Involvementt Northern Project. Highway access, improved access and mobility for those with disabilities, integration of public transport initiatives and improved amenities such as information bays, noise attenuation and landscaping. Some of the key projects and achievements delivered through the program are shown below.

Achievements

Total 2010–11 Cost Completion Project Expenditure Date Description ($ million) ($ million) Gascoyne Carnarvon 29.8 6.5 April 2011 Reconstruction, widening and seal Mullewa Road Great Southern Fitzgerald River 40.0 14.0 July 2012 Construction of Hamersley Drive and National Park associated spur roads near Hopetoun and Improvement upgrade and seal sections of Point Anne Kimberley 55.6 3.4 2017 Improve formation, drainage and gravel Metropolitan Swan River Wall 2.0 1.6 June 2011 Construction of a Gabion River wall near Riverside Drive east of Narrows Bridge

Improving Remote Access Looking Ahead

Various remote access improvement works were Continue undertaking various conducted across remote regional areas which improvement works on the Gibb River included Tjubjubtjarra, Tjiirrkarli, Wingellina, Road including gravel resheeting and Patjarr and Wanarn. Financial grants were drainage improvements provided to the Local Governments by Main Continue investigation, planning and Roads to carry out the upgrade works aimed at design works for the Fitzroy Crossing to improving remote community access particularly Gogo section of Great Northern Highway during wet weather. Works included grading roads, providing gravel to ensure preservation Gravel resheeting and drainage of roads and improvement of usability during improvements on the wet weather. The total cost of the various between Laverton and Docker River projects in 2010–11 was $2.8 million. Continue the reconstruction and sealing of existing roads within the Fitzgerald River National Park, including Hamersley Drive.

44 Case Study

Carnarvon–Mullewa Road – Completion of Seal

Friday 20 May 2011 marked a significant day in the history of the Gascoyne Region with the completion of the sealing of Carnarvon–Mullewa Road between Carnarvon and Gascoyne Junction being officially opened. The State Member for the North West, Shire of Carnarvon President, Shire of Upper Gascoyne President; former Minister for Transport, Hon Eric Charlton; Main Roads Executive Director Regional Services, John Erceg and others involved in the project attended the opening ceremony.

(L) During the roadworks basecourse mixed and ready for laying out. (R) The final section of seal is completed on the Carnarvon-Mullewa Road.

In the 1990s the unsealed of Carnarvon, with project Upper Gascoyne to repair road was typically closed on management and technical damage to the 164 kilometre average for ten days per year support provided by Main section of road between North due to wet weather and with Roads. During this period, West Coastal Highway and the crash rate significantly 128 kilometres of road was Gascoyne Junction. higher than the State average reconstructed and sealed The repair works were for unsealed roads (at the at a cost of $23.3 million. completed at a cost of time), the road was justifiably In September 2010 Main approximately $650,000. in need of improvement. As a Roads started construction on Main Roads directly managed result it was identified as a high the remaining 27 kilometres the works and invested in priority within the “Roads 2020 of unsealed road. The final the region with much of the Regional Road Development section was delivered by plant used on the project Strategy 1997”, the Shires Main Roads at a cost of being sourced locally which Main Roads Annual Report 2011 of Carnarvon and Upper $6.45 million using direct resulted in a significant Gascoyne successfully lobbied management, resulting in a reduction in costs. Given the the then Minister for Transport total cost of $29.8 million. long lead times for water and for funding to seal the road. material, the average cost Unfortunately, the project of $192,000 per kilometre A project to seal the remaining received a setback in is a great achievement and 155 kilometres between December 2010, when record demonstrates the capability Carnarvon and Gascoyne rainfall and flooding damaged of both Main Roads and Junction was initiated in 1998, sections of Carnarvon– Local Government own with construction commencing Mullewa Road. As a result project management and in 2000. Between the years of this flooding, the project supervisory staff. 2000 and 2008, the works team was enlisted by the were undertaken by the Shire Shires of Carnarvon and

45 Office of Road Safety

Leading and Coordinating the State Road Safety Strategy

Outcome

This program seeks to achieve improved coordination and community awareness of road safety in Western Australia.

At a Glance

2011 25 2010 29 2009 33 2008 27 0 5 10 15 20 25 30 35 $ million

Expenditure $25 million

Key Performance Indicators

2011 2011 Result Target Actual % Effectiveness of road safety awareness campaigns 80% 100%

% of projects completed on time 90% 90%

% of projects completed on budget 90% 88%

46 Introduction

This program is unique within the Main Roads program structure and represents the activities of a single business unit. This program represents the Office of Road Safety which is the lead organisation for road safety in Western Australia and has responsibility for developing, coordinating, promoting and monitoring the State’s road safety strategy, Towards Zero. We provide strong leadership and coordination in the key road safety areas of policy, research, evaluation and community education. As the administrative body for the Road Safety Council, we are responsible for administering the Road Trauma Trust Account on behalf of the Council, which includes managing grants to other agencies for road safety projects approved by the Minister for Road Safety. Together with the Road Safety Council, we promote the shared responsibility of road safety with the main objective of significantly reducing road trauma on our roads.

Towards Zero Road Safety Council

Towards Zero is the Established under the The Council identifies State’s Road Safety Strategy. Road Safety Council Act, measures to improve The underlying philosophy the Road Safety Council is road safety; identifies and of the strategy means we do independently chaired by recommends measures to not accept that any human Professor D’Arcy Holman and reduce deaths, injuries and being should die or be includes representatives from property damage resulting seriously injured on our roads. the Departments of Transport, from road crashes; evaluates Realistically we understand Planning, Education and and monitors the effectiveness it is not practical to achieve Health, Main Roads, Western of these measures and zero deaths and serious Australian Local Government makes recommendations to injuries on our roads by the Association, Office of Road Government to improve the year 2020, but we do not Safety, Insurance Commission safety of the State’s roads. accept any death or serious of Western Australia, Western injury as inevitable. Using Australia Police and the a Safe System approach, Royal Automobile Club of Towards Zero advocates for Western Australia. safe drivers in safe vehicles, travelling at safe speeds on safe roads. If all cornerstones of the Towards Zero strategy are fully implemented, we have the potential to save Awards 11,000 people from being killed or seriously injured World between 2008 and 2020. the That is a reduction of around of Award Awards Commission 40% on present day levels. Ads There is also a potential cost saving to the community • The– 2011 Internationalestern GoldAustralia Award for ‘Enjoy the Ride’ Newspaper of up to $2.4 billion. West Alliance Road Safety initiative International Recognition• Insuranceof W – OverallSouth best of section winner for the For more information Awards 2011 visit our website Newspaper AustralianAward for Driver Distraction www.ors.wa.gov.au • London– 2010 Bronze Award for Radio ‘Keep Breathing’ West (online) Award for Speeding • AWARD– 2011 Bronze Award for Radio ‘Keep Breathing’ Ads Australian • The– 2011 Caxton West • Best– Speeding ‘Enjoy the Ride’ 3-minute film y the Ride’ campaign. • The– 2011Ad Campaignof the Month Brief (May) 47 ‘Enjo

Achievements

Development of International Road National Road Safety Strategy Safety Management Standard On a national scale we made a significant We were nominated by Australian road safety leadership contribution for the State and the jurisdictions to jointly participate with South nation in the development of a new National Australia in a Project Committee established Road Safety Strategy for the years 2011–20 by the International Standards Organisation. which was released by Australian Transport Ministers on 20 May 2011. As the writer for the editorial committee of this international project, we made a Along with all other Australian jurisdictions we will substantial contribution to the development of contribute towards implementing, monitoring and a new International Standard for a road safety reporting on the progress achieved in reducing management system (ISO 39001) which will road trauma. ensure better integration of road safety into the decision-making of commercial and Funding non-commercial organisations world-wide. The Government recently announced that inflows This is a significant step towards building into the Road Trauma Trust Account from red capacity within organisations to implement light and speed camera infringements will be best practice road safety initiatives within the increased from one-third to two-thirds in safe system framework. The new standard will 2011–12 and 100% from 2012–13. also stimulate interest in road safety among organisations that are familiar with management These additional funds will be targeted towards system standards in other areas. key Towards Zero road safety implementation projects including: improving the safety of urban This new standard is one part of contributing intersections, reducing single vehicle crashes on to a renewed global effort to eliminate death regional roads; enhanced police enforcement to and serious injury on roads. reduce drink driving and speeding, enhanced education; supported by research and Global Decade of Action for development to save lives and reduce injuries Road Safety 2011–20 on our roads.

On behalf of the Road Safety Council, we organised an event to recognise and promote the global Decade of Action for Road Safety 2011–20.

It is an international initiative endorsed by the United Nations General Assembly that provides a framework to countries and communities to increase action to save lives on the world’s roads.

We marked the day with a stakeholder breakfast with presentations from the Minister for Transport, the Road Safety Council chairman and two key note speakers who discussed the role of the health sector in road safety and self explaining roads for improving safety and

community access. The presentations were An Indigenous Road Safety Advertisement being shot. followed by two workshops. 48 Road Safety Council Campaigns Indigenous Road Safety We conduct road safety education campaigns, engagement and partnership activities on behalf of the Road Safety Council We have produced an and Government. Indigenous Drink-Driving and Licensing Education Kit Speed Community Regional Restraint to help address the issue of Education Campaign Promotion Project the over-representation of – ‘Enjoy the Ride’ – ‘Belt up’ Indigenous people in road trauma and drink-driving ‘Enjoy the Ride’ is an innovative For the past 13 years the convictions, particularly in approach to addressing WA Football Commission has regional areas. community education by delivered the Belt up restraint presenting the benefits of message to males aged We aim to engage and support slowing down on the roads, as 17–39 in remote and regional a range of Indigenous people a contrast to other campaigns communities. In 2011, a new to build capacity in their that traditionally warn the direction was undertaken communities to address public about the consequences which saw us collaborating drink-driving and unlicensed of speeding. Launched in with WIN Television to produce driving. In 2010, we also March 2011 the campaign a new media program that collaborated with Goolari reached more than 330,000 delivers the Belt up message Media to produce two radio people in Perth alone, to view to males living in regional commercials on ‘Fatigue the commercial visit areas. This was done through – Swap Stop Sleep’ and www.enjoytheride.wa.gov.au. the ‘Off the Boot’, a weekly ‘Restraints – Cha Ching’. television show airing before Driver Distraction the AFL broadcast. Community Awareness Campaign – ‘Behind Closed Doors’ This campaign aims to raise Looking Ahead public awareness of the dangers of in-car distractions Continue to improve while driving and the potential and introduce new road risks associated with these safety legislation distractions. It has been estimated that distraction Complete development played a role in 32% of of and begin to promote all road crash deaths and use of the International serious injuries between Standards on road 2005 and 2007. safety management with organisations

Provide advice and Main Roads Annual Report 2011 expertise to ensure that the community is able to realise the maximum safety benefit possible from the increased funding from speed and red light cameras into the RTTA for future road safety initiatives Develop and commence a new speed enforcement campaign.

49 Case Study

Partnership Program Grows through the Pilbara Industry Road Safety Alliance and the Dampier–Bunbury Pipeline 10–year Partnership

The Road Safety Council Partnership Program conducted by the Office of Road Safety is an initiative that encourages and supports others to embrace the vision of Towards Zero. Our role is to engage organisations at their place of employment, encouraging them to include road safety as an important social responsibility and integrate the value of life with business policy, practices and operations.

Following the success of the South West Alliance in 2009–10 this year we had two significant highlights in the Partnership Program. The first being the Pilbara Industry Road Safety Alliance launched in October 2010. This is a collaborative approach (L) The signed Certificate of Partnership. (R) The inaugural Dampier Pipeline launch (from left) Stuart Johnston, CEO of Dampier Bunbury Pipeline, Minister for towards improving road safety Police; Emergency Services; Road Safety, Hon Rob Johnson and Alastair Bryant, in regional Western Australia General Manager Licensing, Department of Transport. with the goal of reducing the number of people seriously In June 2011, the Road Safety The second highlight injured or killed on roads within Council had the opportunity to developed from the Partnership the Alliance’s area of influence. meet the Alliance in Karratha Program, was the 10–year which was a great success. partnership agreement with Alliance members Highlights from the meeting Dampier–Bunbury Pipeline. include BHP Billiton; include identifying collaborative It is the longest partnership Rio Tinto; Apache Energy; opportunities for conducting agreement in the history of Citic Pacific Mining; road safety audits; increased the Road Safety Council and Chevron Australia; Woodside speed enforcement, audible the Office of Road Safety. Energy; MCC Mining; edge lining for the region; The Partnership is seen as an Fortescue Metals Group; improved awareness of remote opportunity to further innovate Main Roads; Department licensing issues and promoting and pioneer road safety. of Transport; Western the electronic version of the Australia Police; Office of Driving in the Pilbara book The Dampier to Bunbury Road Safety and Local on both the Office of Road Natural Gas Pipeline is one Government (Roadwise). The Safety and the RAC websites. of the longest pipelines in Minister for Road Safety, the The Chair of the Road Safety Australia often requiring long Hon Rob Johnson, officially Council summarised the event distance road travel through launched the new Alliance in by saying the discussion of regional areas. The Partnership Karratha in November 2010. the actions they had with the Program has matured and is Alliance “showed a high level of progressing. We will continue engagement, commitment and to work together and support sophistication, consistent with organisations and alliances in the safe system approach of pursuit of reducing transport Towards Zero”. related death and serious injury at the workplace and in the broader community in alignment with Towards Zero. 50 Road Management

Providing reliable and efficient movement of people and goods

Outcome

This program seeks to optimise real-time management of the network, provide traveller information, asset management planning and to support service delivery.

At a Glance

2011 97 2010 91 2009 73 2008 79 020406080 100 $ million

Expenditure $97 million

Key Performance Indicators Main Roads Annual Report 2011 2011 2011 Result Target Actual % Community satisfaction 90% 97% Network configuration (% of travel Roads 87% 89% that occurs on roads meeting Main Bridges Strength 95% 95% Roads AMP Investigatory Criteria)

Note: Road Efficiency and Road Management both contribute to the outcome of “Providing reliable and efficient movement of people and goods” and so share some Key Indicators.

51 Introduction

The Road Management Program covers activities associated with the management and operations of the road network including providing technical advice about the road network that cannot be allocated to a specific road project. It specifically includes the State’s Traffic Operations Centre, Customer Contact Centre, Heavy Vehicle Operations and costs associated with lighting, traffic signal operations and other operational areas. Some of the key projects and research activities delivered through the program are shown below.

Main Roads Traffic Operations Centre, Northbridge. Achievements

Traffic Operations and Services

Intelligent Transport Systems Web Survey Portal – Enhancing Perth’s Freeways Survey and Mapping

We have continued to roll-out Intelligent Transport Systems (ITS) An upgraded Survey Portal aimed at providing new opportunities to manage congestion, was released on our website reduce road crashes and the environmental impacts of transport. in May 2011.The Survey Portal The continued deployment of foundation Intelligent Transport is an interactive GIS database Systems will enable real-time traffic monitoring, incident that graphically displays the management, traveller information and congestion management location of all Main Roads on Perth’s freeways. Some of the foundation ITS, delivered through Survey Control and Project the Efficiency Program, and other initiatives implemented over the Zones that are essential for past year include: design and construction works. The long-term objective of the 33 Vehicle Detection An additional 19 cameras site is to eventually display Stations installed along were installed enabling all our existing Survey and the Mitchell and operators to view Mapping datasets in a single Kwinana Freeways real-time traffic database. One of the key new features available is the ability 32 kilometre expansion of Installation of Wire Rope to view the location of all roads the fibre optic cable on the or W-Beam barriers along in the State. Graham Farmer Freeway, sections of Mitchell Freeway Roe Highway and between Hutton Street and Mandjoogoordap Drive Reid Highway, both north and southbound.

52 Road Safety Support Services

Incident Management Road Safety Strategy 2011–15 Processes and Systems The ‘Road Towards Zero’ is our new road safety strategy designed We have been actively to change the way we think about and provide safe road access. involved in improving the State Western Australia ranks second among the worst fatal crash rates Emergency arrangements in Australia. This requires a change to the traditional view of road by assisting Emergency safety with a focus on road trauma. Accordingly, we have adopted Management WA to produce a new strategic approach to road safety which is supported by a Traffic Management during a strong Road Safety Policy Statement with a clear focus on Emergencies guide. This is road trauma reduction. Our “Road Safety Policy Statement” is designed to improve the traffic “we believe that no one should die or be seriously injured on the management response by State’s road network, and will manage the network to minimise emergency services and road trauma”. This policy statement clearly outlines our beliefs, co-ordination with Main principles, objectives, which underline our new approach to Roads. It will assist in ensuring achieve success. For further information visit our website. safety and facilitate access during emergencies. The Crisis and Incident Information Main Roads Traffic Operations Centre, Northbridge. Management system, Heavy Vehicle Operations WebEOC, continues to assist with the management of incidents that occur on the We are responsible for the regulation of road network access for Main Roads network including vehicles in excess of 19 metres in length, 4.3 metres in height, the significant emergencies 2.5 metres in width or 42.5 tonnes gross mass. These are that have impacted on our known as restricted access vehicles. The following are some of customers such as the the initiatives that have been undertaken by our Heavy Vehicle Gascoyne and Kimberley Operations area: flooding and Roleystone fire. In total there have been 7 crisis Permits level incidents, 20 major incidents and 868 operational Restricted Access Vehicles must obtain permits to operate on incidents successfully the State’s road network, each permit outlines the roads which managed by our people. the vehicles and combinations may operate on and under what conditions. There are currently in excess of 20 permit products Fatal Crash available to operators including oversize, product specific and Investigations extra mass permits. Across these products we issued just over 37,500 permits last year. The turnaround time to issue single trip

A total of 132 preliminary fatal permits was under 24 hours for the majority of applications. Main Roads Annual Report 2011 crash investigations were undertaken over the past Accreditation year. In addition 30 more comprehensive full reports We manage the WA Heavy Vehicle Accreditation system which have been completed in is compulsory for all restricted access vehicles that operate in circumstances where the this State. Accreditation consists of two modules which include road may have contributed to maintenance management for vehicles and fatigue management the crash. The findings from for drivers. We manage an audit program for over 4,000 State these reports are used to accredited operators and as part of our compliance monitoring identify road improvements to program conducted 192 random audits, two triggered audits and prevent recurrences. seven consultations during the year.

53 Compliance

We are responsible for monitoring compliance with regulated access to the road network by heavy vehicles. This area’s key achievement has been the move towards a strategic approach to compliance enforcement based on intelligence gathering and targeted enforcement activities. This approach enables a more effective use of resources and targets areas where indicators show there is a higher percentage of non-compliance. Along with the Complying Together newsletter we have been working closely with the road transport industry to address and resolve specific non-compliance concerns.

Restricted Access Vehicle System Update

Stage 1 on the new Restricted Access Vehicle System (RAVS) will provide significant benefits through increased automation of activities. In some cases, our customers will be able to submit various permit applications and make payments via the internet. RAVS will also automate a number of internal functions and processes that will enable staff to focus on the more complex permit applications or bodies of work such as maintaining operator records and accreditation, thereby improving overall customer service, quality of service and documents and permit turnaround time.

Looking Ahead

Support WA Police with the planning and traffic management for CHOGM Implementation of Main Roads’ Road Safety Strategy Upgrade Traffic Management Systems to facilitate the development of Managed Motorways Contribute to the implementation of Inter Government Agreement to deliver a seamless national economy through the National Heavy Vehicle Regulator.

Main Roads Transport Inspector’s assessing a heavy vehicle.

54 Case Study

Incident Management in Action on Black Sunday and the Reconnection of Brookton Highway over Canning River

On Sunday 6 February 2011 the devastating Kelmscott–Roleystone fires destroyed the Buckingham Bridge over the Canning River on Brookton Highway. Main Roads Traffic Operations Branch quickly established an Incident Management Team after being advised by Fire and Emergency Services Authority (FESA) of the major fire.

Buckingham Bridge which was destroyed by fire in February 2011 was rebuilt and officially opened within 1 month by the Hon. Troy Buswell, MLA on 4th March, 2011.

This team worked actively through Sunday A Metropolitan Region Incident Management night to coordinate an immediate response to Team was also formed to address the issue of support the Emergency Services in managing providing a temporary replacement crossing. the incident. This involved advising road users Three suitable road detours were subsequently and other key stakeholders of road closures and implemented until the temporary crossing was detours as well as organising traffic management in place. This work conducted by Main Roads to close roads and establishing short term and the City of Armadale only took 18 days detours. Our on Scene Traffic Commanders of demolishing the destroyed bridge and then worked 24/7 shifts onsite while security guards building a temporary crossing. secured the Bridge crossing for public safety and our Liaison Officers operated when practical at The project was a significant engineering the FESA forward command post. effort in a confined work area that required 4,500 tonnes of fill material, 400 tonnes of rock This continued until later in the week when the and 250 tonnes of crushed limestone. Around fire had been contained by FESA. Of note were 200 tonnes of debris from the destroyed bridge

the live images of the fire scene and in particular also had to be removed from the site before Main Roads Annual Report 2011 the Buckingham Bridge being relayed from the construction began. On Scene Traffic Commander mobile vehicle cameras to the Traffic Operations centre during The temporary crossing was in place less than the initial incident response. This real-time a month after the bushfires and will stay in information enabled us to make quick, accurate place until a replacement bridge is designed and safe traffic management decisions and keep and built. The temporary crossing includes a road users updated on road closures. large four barrel culvert with capacity to take in excess of a 1-in-5 year storm and the size of the embankment above means that a larger flow can be contained within the broader confines of the river breakout area. It was a great example of resourcefulness and commitment to reinstating road access to the community.

55 Social Performance

Sustainability Creating a Sustainable and Responsive Organisation

Outcome

Creating lasting benefits through an integrated consideration of social, environmental and economic aspects in all that we do.

Key Performance Indicators

2008–09 2009–10 2010–11 GRI Achievements C B B (GRI checked) Scope 1 and 2 Emissions 26,656 31,575 28,042 Electricity Usage (MJ) 97,378,636 117,008,514 108,319,936

Note: Emissions calculated as per Department of Environment and Conservation requirements which align to the National Greenhouse and Energy Reporting Act 2007.

Introduction

We strive to be an organisation that integrates economic, social and environmental aspects into decision making and seek positive outcomes in • Australian each. We will manage, operate and develop a of Ar road transport system that meets the needs of – WA Architecture Sustainable today without compromising the natural, human chitects Award for Grea and financial capital on which future generations Regional Office Institute • will depend. Our business activities typically Keep – Best Business Garden have a direct impact on the economy, the environment and people. Through the Recognition for perfect exampleAustralia of a t Southern lo adoption of our own Sustainability Policy and w water-use garden at the Grea Strategy we will improve and strengthen the Regional Beautiful way we meet community needs. t Southern Office. Award

56 Achievements

This section is structured around the six key elements that drive our Sustainability Strategy which are Leadership and Corporate Policy, Education and Awareness, Business Processes, Partnerships, Sustainability Projects, and Performance Tracking and Reporting.

Leadership and Corporate Policy

To underpin our existing approach our current focus will be on climate change, resource use and environmental resilience assisting in providing a balanced transport system and delivering broader community value beyond roads.

Sustainability Policy and Strategy

Our Sustainability Policy states that “we are committed to creating lasting benefits through an integrated consideration of the social, environmental and economic aspects in all that we do”. As an organisation we seek to achieve positive outcomes in economic, social and Roadside revegetation near Narrogin. environmental aspects. We also undertake to manage, Environment Resource Use operate and develop the road transport system in a Our commitment to In road building, natural way that meets the needs of responsible environmental materials are crucial; however today without compromising stewardship is described in as an organisation we future generations. This our Environmental Policy that recognise the importance is underpinned by our establishes the principles of conserving these limited Sustainability Strategy. of protecting environmental materials, as well as the values of road reserves, vegetation that may be Carbon Action minimising impacts on disturbed during the extraction Plan-Climate the natural environment, process. In our offices we

Change Adaptation conserving natural resources recycle and re-use materials Main Roads Annual Report 2011 and Mitigation and minimising energy wherever possible, with consumption and waste. employees supporting We have developed a Carbon This commitment is put into increased recycling across Reduction Action Plan and practice via a corporate-wide the organisation. This has Target (5–15% reduction of management system, primarily resulted in the introduction of 2010 levels by 2020) for our in delivery of road construction many innovative programs, Scope 1 and 2 emissions and projects and management one being the commingled have been working towards of the road network. More recycling which includes the finalising a Climate Change information on how we manage organisational recycling of Adaptation Plan for our environmental challenges batteries and fluorescent tubes. business. Further information please view our annual Public can be found on our website. Environment Report that is available on our website. 57 Education and Awareness

Through building staff awareness of sustainability principles and providing a real demonstration of their application in the work place we are able to empower our employees to take action for sustainability. Training workshops are run on an as needs basis and we participate and widely promote behavioural change via Sustainable September and Earth Hour.

Promoting Sustainable September.

Champions Groups Managing Directors Sustainability Awards

Established in 2008, both The “How Sustainable Are You” competition is run as part of the corporate and regional Sustainable September where entrants are asked to give examples Sustainability Champions of how they have supported sustainability and what the benefits Groups have been active were. The following were recognised for their efforts: in progressing elements of the Sustainability Strategy. Individual – Mike Griffin for demonstrating a committed effort These groups are a diverse to supporting sustainability over a number of years in being representation of employees resource and energy efficient that are keen to undertake Project – The Traffic Control Infrastructure Contract (TCIC) specific sustainability-related Brown-Out Trial demonstrated a committed effort to reduce projects. The projects they are carbon emissions and energy consumption on the road currently involved with include; network by challenging the current provision of street lighting assisting in developing the Sustainability Performance Branch or Region – Goldfields–Esperance Region Framework; developing an demonstrated a commitment to sustainability in their projects organisational Carbon Strategy; and in their workplace through their recycling practices. reviewing the Sustainability Intranet and Education and Training Workshops Awareness Program; and assisting with deploying Following the successful roll-out of our Sustainability Workshops Sustainable September. over the last couple of years the focus this year has been on inducting new employees to Main Roads and our Integrated Service Arrangement partners. The feedback and input continues to be very positive.

58 Business Processes

Incorporating sustainability into our day-to-day business processes has been the key to achieving a more sustainable organisation. The following are some of the initiatives undertaken.

Sustainability Framework for Major Projects

A sustainability framework is being developed for major projects that will link to the proposed Australian Green Infrastructure Council’s (AGIC) Sustainability Rating Tool for infrastructure. The framework will form part of our project management system to improve our works projects procurement practices. We are already tapping into AGIC’s industry knowledge and currently trialling draft versions of an AGIC-produced Sustainability Quick Check Tool.

Sustainable Procurement and Buy Local

The State Supply Commission Policy on sustainable procurement requires us to demonstrate that we have considered sustainability in our procurement of goods and services. We have gone beyond the requirements of this policy to reflect this in not only our processes for procuring goods and services but also in procuring works. We also apply the Buy Local Policy where we consider and give preference to local providers in our purchases as the benefits to industry development and employment are recognised. Buy Local Policy clauses are also included in all our tender documents and tender assessments. Reporting for Buy Local is extracted from information contained within the Department of Treasury and Finance’s Tenders WA website; however data is not yet available for the current year.

2008–09 2009–10 Metro Regional Metro Regional Awarded to businesses located within the n/a 35% n/a 40% “prescribed distance” of a regional delivery point as defined in the Buy Local Policy

Awarded to a “local business” as defined in 94% 82% 100% 97% the Buy Local Policy (Target 80%)

Property Management Environmental Systems

Our commitment to improving the efficient use The Environmental Management System Main Roads Annual Report 2011 of energy and water in offices, depot buildings (EMS) addresses environmental risk across and staff housing continued during 2010–11. our entire business in all key processes Refurbishments to existing buildings included including planning, delivery, maintenance, adopting sustainability principles to facilitate network operations and supporting services. more efficient use of energy and water. The The EMS is independently certified and design of new staff housing included sustainable audited according to the international standard features such as solar orientation of buildings. ISO14001. Key components for road works are These items and other sustainable initiatives will the process and training of our people to be continue to be included in maintenance, upgrade effective in fulfilling environmental obligations and and new construction projects. endeavours. Recent improvement efforts at the system level have focused on strengthening our processes for direct-managed works where we retain full responsibility for construction activity.

59 Aboriginal Heritage

Sites of heritage significance for Indigenous people occur in many locations across the road network and require special consideration. Consultation with Traditional Owners is crucial in identifying sites and avoiding and mitigating any unavoidable impacts. Formal meetings are held with groups about heritage aspects, including the need for on-site monitoring during earthworks for road projects. Ethnographic and archaeological surveys are undertaken with local representatives with more than forty surveys this year.

Traditional Aboriginal Artwork.

Partnerships

By working closely with Local Government, our suppliers and portfolio partners we can establish common sustainability goals and planning alignment. We also look to align with organisations that help us to improve our sustainability practice such as membership of the Australian Green Infrastructure Council and the CitySwitch program. More information on our partnerships can be found on our website.

Portfolio Approach Roadside Conservation Committee

Agreement has been reached We continue as a major contributor and supporter of the Roadside to create a Transport Portfolio Conservation Committee, which fosters effective management Sustainability Policy that will of roadside vegetation. Actions included knowledge transfer of provide guidance to each engineering aspects of road construction and maintenance that of the agencies within the influence roadside vegetation. Refer to the case study in this portfolio. This will achieve section for more information. greater alignment, integration and knowledge sharing between our portfolio partners. The ROADS Foundation Established in November 2006, the ROADS Foundation aims Collaboration with to address the skills shortages in the civil construction industry Stakeholders through facilitating traineeships for young, unemployed or disadvantaged people in regional communities. The Foundation Collaboration with links new trainees with a local mentor to support them in the environmental stakeholders transition to the workforce and traineeship. It also provides occurs in many situations education, training and support to the trainees, their mentors and is a prerequisite for good and supervisors to facilitate successful outcomes. Changes outcomes. At an agency level, are being made to the Foundations operating model, based we were a key contributor on the highly successful Industry Training Unit (ITU) established in a group managed by by the Department of Housing. The Foundation expects these the State’s Centre for changes to be implemented next year. The ROADS Foundation Excellence and Innovation has successfully assisted and supported 121 young people in in Infrastructure Delivery civil construction traineeships through eight road construction (CEIID). This group focused on contractors/alliances, ten Local Governments and ten Main Roads common challenges faced by offices. In the past 12 months the Foundation has commenced agencies in the environmental supporting 30 existing worker-trainees, while a further five trainees approvals process and and one apprentice have been placed. The Foundation continues provided recommendations for to support its 47 trainees across the State and provides consideration by other process job-readiness training to 35 Indigenous young people. improvement initiatives. 60 Sustainability Projects

Highlighting the application of sustainability in projects and initiatives results in raised awareness of ways to support sustainability. A few projects undertaken over the past year are shown below.

Electric Vehicle Trial Brown-Out Trial Renewable Energy on Roads Projects We have taken possession The street lighting Brown-Out of a fully electric converted Trial has occurred over the past A Development Employee Ford Focus as part of a trial three years. The trial has been Leadership Program group Traditional Aboriginal Artwork. to prepare for the move to examining if a reduced level investigated how renewable electric vehicle transport. of street lighting could save energy solutions could be The trial aims to determine a carbon emissions and maintain implemented on a major better understanding of driver safety on the road network. road project. A feasibility behaviour and to predict The trial has now ended with study concluded the use of electric vehicle driving and a power cost-saving in excess renewable energy on the charging patterns. The car is of $560,000 and a reduction Great Eastern Highway available to staff as part of our in carbon emissions of about Upgrade–Kooyong Road to vehicle pool. More information 8,500 tonnes. An analysis of Tonkin Highway is an option. can be found on our website. crash statistics has shown no The group is now working with significant change in crash the City East Alliance, the rates before and after. Work will City of Belmont and ADSHEL now be undertaken to review to establish solar-powered bus our Lighting Policy. stops along this route.

Performance Tracking and Reporting

We continue to develop mechanisms to monitor and report progress on sustainability performance within our organisation. The following are some of the initiatives we have undertaken and their results.

Global Reporting Sustainability Initiative Performance Framework

Following our 2010 Annual A Sustainability Performance Report being upgraded to a Framework with associated Main Roads Annual Report 2011 B–Level Sustainability Report plans and policies is under inline with the Global Reporting development. It will clarify Initiative (GRI) framework, our long-term priorities and the 2011 Annual Report has has been generated from been checked by a third party a gap analysis process and GRI. Current compliance that utilised staff input from with the GRI can be found Sustainability Awareness on page 168. workshops and external sustainability frameworks.

61 Energy usage and Greenhouse Gas

Scope 1 or 2 and 3 Year

GHG Type (t CO2) 2008–09 2009–10 2010–11 Fuel 3,435 5,049 3,597

Street and Traffic Lights 21,721 25,206 22,894

Buildings 4,669 4,959 4,816

Air Travel 432 462 496

Offsets -1,699 -4,954 -1,753

Total 28,558 30,722 30,050

GHG Category (t CO2) 2008–09 2009–10 2010–11 Scope 1 3,090 4,661 3,160

Scope 2 23,566 26,914 24,882

Sub Total 26,656 31,575 28,042

Scope 3 3,601 4,101 3,761

Offsets -1,699 -4,954 -1,753 Total 28,558 30,722 30,050

Note: 2011 fleet emissions yet to be offset.

Environmental Management of Road Projects

Environmental assessment is undertaken on all road projects with the level of assessment being based on risks and potential impacts. Any necessary approvals are gained and project environmental management plans are developed and incorporated into project delivery arrangements. The table indicates the number of road projects and assessment types. There were no instances of significant non-compliance and no penalties or financial sanctions relating to our operations this year.

Level of Environmental Assessment 2007 2008 2009 2010 Number of road projects subjected to 73 96 71 97 environmental screening

Number of road projects for which 98 79 82 60 environmental impact assessment was conducted

Number of road projects referred for 2 3 4 8 possible assessment under State or Commonwealth legislation

Number of road projects assessed under 0 0 1 4 State or Commonwealth legislation

Environmental Compliance 2007 2008 2009 2010 Number of environmental non-compliances 13 5 9 12

62

63

transport system system transport

performance of the the of performance

better understand the the understand better

ocess to to ocess pr a Develop

Policy. Sustainability Plan Adaptation Change

Development of a Portfolio Portfolio a of Development Climate a support to

actions of Deployment

Rating Tool Rating

of AGIC’s Sustainability Sustainability AGIC’s of Performance Framework Performance

oject oject demonstration pr demonstration Sustainability a of

route to Mandurah. Mandurah. to route

Seek to be involved in a a in involved be to Seek development Continued

provide a distinctive new entry entry new distinctive a provide

artworks and sculptures that that sculptures and artworks

Looking Ahead Ahead Looking displaying a broad suite of of suite broad a displaying

Annual Report 2011 Annual Main Roads of this road and rail project project rail and road this of

influential in the final design design final the in influential

ND = No Data available available Data No = ND * Community consultation was was consultation Community

into a suburban setting. setting. suburban a into

1091118.514.66 82.75 111.1 160.9 t) (000s Total

infrastructure to be blended blended be to infrastructure

sizeable component of urban urban of component sizeable Recycled Materials Recycled

Mandjoogoordap Drive had a a had Drive Mandjoogoordap

Other (m Other D ,5 2 10,060 922 2,351 ND* )

3 the recently completed completed recently the

Unsuitable material (m material Unsuitable 9976,3 2166,360 22,116 60,530 19,987 ) by regulators. In contrast, contrast, In regulators. by

3

in readiness for approval approval for readiness in

Existing seal (m seal Existing 1651,8 38488,817 73,894 15,880 51,625 )

2

the point of public consultation consultation public of point the

Pavement/footpath (m Pavement/footpath 40513028713,438 2,837 1,370 14,005 )

options has now advanced to to advanced now has options 2

of mitigation and offsets offsets and mitigation of 10539650210,591 5,072 3,966 11,065 (m) Kerbing

assessment and consideration consideration and assessment

Waste materials to landfill landfill to materials Waste

environmental environmental Rigorous

on biodiversity aspects. aspects. biodiversity on niao 0720 092010 2009 2008 2007 Indicator

communities, particularly particularly communities,

delivering our services: our delivering with specialists and and specialists with

The following table reports on recycling of materials as part of of part as materials of recycling on reports table following The extensive collaboration collaboration extensive

Beeliar Regional Park required required Park Regional Beeliar

Resources Recycled Resources

scheme alignment through through alignment scheme

along the 1963 planning planning 1963 the along

extension of Roe Highway Highway Roe of extension

. .230 4.65 3.01 9.72 2.4 t) (000s Other

process for designing the the designing for process

1654,8 5008,549 25,040 43,988 31,635 metres) (cubic Concrete The current development development current The

Kerbing, barriers, bridges and culverts and bridges barriers, Kerbing,

constraints. constraints. of

7 8 8 159 180 489 572 t) (000s Other across a wide range range wide a across

environmental challenges challenges environmental

04 7 68 372 43 10 t) (000s Asphalt

projects can present significant significant present can projects

Aggregate (000s t) (000s Aggregate 85 960 89 57 38

plans. Large-scale road road Large-scale plans.

environmental management management environmental Limestone (000s t) (000s Limestone 3 ,4 5 320 251 1,440 437

specified in the associated associated the in specified

Crushed rock (000s t) (000s rock Crushed 5 8 3 109 239 684 552

offsets as as offsets mitigation and mitigation

Gravel (000s t) (000s Gravel ,6 ,3 ,2 89 1,422 1,533 1,363 granted based on avoidance, avoidance, on based granted

sites with approvals being being approvals with sites

Sand (000s t) (000s Sand ,8 ,5 2 842 622 3,754 9,281

species, wetlands and heritage heritage and wetlands species,

Imported road construction materials materials construction road Imported habitats and threatened threatened and habitats

regulators involved sensitive sensitive involved regulators niao 0720 092010 2009 2008 2007 Indicator

by State or Commonwealth Commonwealth or State by

projects that were assessed assessed were that projects services: our

Key impacts associated with with associated impacts Key The following reports on materials used as part of delivering delivering of part as used materials on reports following The Materials Extracted Extracted Materials Case Study

Mandurah Entrance Road Fauna Management Team win 2010 Environmental Excellence Award

Mandurah Entrance Road, known as Mandjoogoordap Drive, provides a direct link into Mandurah and is expected to carry about 10,000 vehicles per day. Among other things, the project included the construction of 6.5 kilometre of four lane dual carriageway.

The completed boardwalk in the Marlee Reserve.

To minimise the project’s This program is the most The team was recently impact on fauna an extensive rigorous ever conducted awarded an Environmental trapping and relocation plan on one of our projects and Excellence Award by the was implemented by Southern sets a new standard for all WA Excellence Awards 2010 Gateway Alliance with the future projects. A significant Simply the Best. assistance of the University of effort was also invested in Western Australia. This plan conserving as many mature Close working relationships included responding to local trees within the road reserve as established over several years residents’ concerns about possible through collaboration provided the opportunity for all managing fauna, working of the environmental, design team members to contribute with designers to minimise and construction teams to to improved environmental the clearing impact and an provide fauna corridors. management, thus enhancing intensive survey was carried the high standards achieved on out to trap and relocate fauna the project. before clearing commenced.

64 Case Study

Roadside Conservation Committee – Lancelin–Cervantes Project

We have an abundance of stakeholders ranging from all forms of road users, the construction industry, environmental groups and many more. They play an important role contributing broader knowledge and different insights and views on our business and the delivery of our services to the community.

Roadside conservation along Indian Ocean Drive.

The Roadside Conservation The Lancelin–Cervantes During the guided tour the Committee, a key project presented an project team explained environmental stakeholder, opportunity to show the the environmental aspects visited the recently opened Committee’s members the and techniques applied to Indian Ocean Drive environmental results of achieve the high standard of Lancelin–Cervantes Project. this large direct-managed environmental management The Committee’s role is to works project. The project is on the project. The Committee coordinate and promote surrounded by conservation appreciated the opportunity the conservation and lands along most of its length to see these achievements effective management of and members could see and undertook to continue to roadside vegetation which the result of efforts to keep work closely with us on future often represents the only disturbance of vegetation to projects to achieve similar remnant native vegetation a minimum and to rehabilitate high outcomes. in some areas. Membership where disturbance could not includes environmental be avoided. groups, Local Government and agencies such as the Department of Environment and Conservation, Main Roads and Western Power.

65 Enhancing Community Relationships Providing the Right Roads for Our Community

Outcome

Making roads work for all road users in Western Australia by creating and sustaining an open, supportive and responsive organisation.

Key Performance Indicators

2008–09 2009–10 2010–11 Stakeholder Satisfaction Survey* 97% - 92% Customer Service Index 91% 89% 89% Austroads User Satisfaction Index* 3.36 - 3.48 Community Perception Survey 96% 97% 97%

* Stakeholder Satisfaction Survey and Austroads User Satisfaction Index are not conducted annually.

Introduction

Our aim is to enhance relationships with the community and to be recognised for a culture of collaboration, transparency and responsive • Injury decision making. Our community and stakeholder engagement objectives include building strong W – Certificateestern ofAustralia Recognition

strategic collaborative relationships through Council ensuring all key stakeholders are well informed, Community Safety Champion Denise Crockford for initia are provided with factual, accurate and to promote community safety in the • 2011 Goldfields of regular information, as well as identifying and addressing stakeholder, – General Bronze Award for community and industry concerns Agenc W.S. Region and managing the impacts of our Recognition• Australasian tive and action

operations in the communities in Awards (ARA)y with moreLonnie than 1,000 FTEs which we work. These objectives – Silver Excellence Award

are supported by our Community Annual Report. Awards Engagement policy which clearly outlines Reporting our key principles and commitments.

66 Achievements

The achievements in this section are separated into the following areas; Community Engagement and Delivering Customer Service Improvements.

Community Engagement

Strategic Relationships Evaluation through Directorate Value Assurance Reviews As part of further developing and the RO&DS our communication and methodology engagement with the community and stakeholders A Value Assurance Review is we have created the currently being implemented Strategic Relationships as part of the Recognising Directorate bringing together Opportunities and Delivering Public Affairs, Community Solutions (RO&DS) Engagement and Strategic methodology that will feed Relationships and Road into the evaluation and User and Customer Service implementation of community Branches. This Directorate will engagement initiatives on pursue outcomes that take major projects and corporate into account all community activities. The outcomes of and stakeholder interests this will be to limit risk and as well as driving strategic ensure that community and and operational customer stakeholder based outcomes service excellence. are delivered.

A Collaborative Bringing it All Together Partnership with IAP2 The community engagement We have continued to formalise process is envisioned to a collaborative partnership be a continual, dynamic with the peak community process that communicates, engagement body IAP2, which implements, evaluates and Strategic Relationships Group offers a network of over 450 allows for refinement. It is Workshop. professional practitioners in based on a foundation that Main Roads Annual Report 2011 public participation, community encompasses best practice engagement and related outcomes through an IAP2 work. This partnership will collaborative partnership and be an industry first which is overseen by a leadership will help to enhance the group comprising internal and capacity and capability of external stakeholders. our workforce through the development of a standard and a review of current community engagement initiatives; and to develop a high level of community engagement across all projects.

67 Delivering Customer Service Improvements

Customer Service Charter

Our Customer Service Charter outlines our commitments to our customers and the Community consultation on Roe Highway Extension. minimum level of service they can expect us to provide. Strategic Advisory It provides customers with a Relationships Forum Groups form of accountability within our decision making matrix as The Strategic Relationships Collaboration with customers our results against our targets Forum has been created and stakeholders ensures are measured. A review of our to ‘collaboratively act to that our operations are open, Customer Service Charter was inform, advise and influence accountable, fair and flexible. completed in 2011 with the Government, enterprise Essential input into various new Charter committing and the community to aspects of the organisation’s to a broad spectrum of achieve integrated and business is obtained from a services delivered across sustainable transport and range of specialist Advisory core business areas. These land use planning outcomes.’ Groups, including: commitments move away This forum is one example of from customer transactional engagement that enhances Customer Service activities and focus on strategic relationships with the Advisory Council a whole-of-organisation approach which integrates to community and stakeholders Cycling and Pedestrian deliver customer outcomes. to deliver value for money Advisory Group outcomes. The group has Community and staff alike three key areas of focus: Disability Advisory Group contributed to the review, strategic relationships and Environmental ensuring that it balanced community engagement; Advisory Group community needs with Local Government available resources. relationships; and strategy Western Australian development and strategic Road Construction and advice. It was created in 2009 Maintenance Industry focusing on the South-West Advisory Group Metropolitan Region. The goal State Road Funds to of the group is to unleash the Local Government social and economic potential Advisory Committee through a genuine partnership Main Roads – Western between public and private Australian Local sectors. The output of the Government Association group is to produce a regional Liaison Committee business case for Infrastructure Australia’s consideration as Traffic Management part of its 2011 considerations. for Works on Roads Advisory Group Traffic Management for Events Advisory Group.

68 Customer Service Index Complaints Handling

The Customer Service Index (CSI) comprises 12 key customer As an organisation, we use service measures that monitor our customer service charter customer feedback including commitments. It traditionally focuses on customer interactions complaints, to improve with heavy emphasis on correspondence and the Customer our business practices. Contact Centre. In 2011 the CSI score for Main Roads was 89.21. When employees join the A review of the CSI was conducted to ensure it continued to reflect organisation, their induction our customer charter commitments and that it was dynamic in incorporates training in our nature with a mixture of monthly, quarterly and annual measures. Complaints Handling Policy The CSI has been renamed to Customer Charter Index and will and Procedures. Our policies now measure service delivery across core business areas. The and procedures are supported new index consists of 27 measures grouped into categories by a monthly quality assurance based on our organisational values. As part of accountability and check. For the last quarter transparency commitments, the index measures and results will be ending June 2011, 58% of published on our website each quarter. people interviewed indicated that they were satisfied with how their complaint was Customer Service Advisory Council handled. This year we have added the quarterly complaints Established in 2006 the Customer Service Advisory Council analysis which aims to resolve (CSAC) has supported our improvement in service delivery recurrent complaints and and challenged us to extend and broaden our thinking in our issues lodged by the public. operations and projects. In 2010, a workshop was conducted These complaints are analysed to plan the objectives of the committee for 2011 and where the and reported to our Business members could make the best contribution to the decision making Improvement Committee with process at Main Roads. This year some of the activities the individual Executive Directors Council provided feedback and direction on included the Roadside being allocated improvement Memorial Policy and Guidelines Review, Great Eastern Highway actions. These improvement Upgrade – Kooyong Road to Tonkin Highway, Integrated Services actions have a closed loop Arrangements (ISA) Branding Principles, Traffic Management reporting cycle which allows Initiatives and our Congestion Management Plan. the Committee to monitor improvements in the business. Customer Feedback Last year there were 471 complaints registered. As we concentrate on Customer Service at a strategic level it is important for us to retain our focus on delivering excellent Category of Percentage customer service in our daily operations. Customer Feedback is a Complaints (%) facility within our Total Records Information Management System that allows us to monitor concerns and issues raised by the public Noise/Vibration 7 and our response to these issues. In July 2010, an online training Road Works 12 module was launched to raise the awareness of the importance of lodging customer feedback and to improve the skills and accuracy Traffic Signals 14 Main Roads Annual Report 2011 of staff. Reminders are circulated to business areas to ensure that Heavy Vehicle 9 staff complete the training to improve customer outcomes. As of Safety Issues 5 30 June 2011, 43% of staff have completed the training and there has been a 53% increase in the amount of feedback registered Signs 4 since the training commenced. Other* 49

Note: Other is made up of 38 categories that received less than 4% (i.e.15 or less complaints).

69 Online Services Community Perception Survey

Since its launch almost three The annual Community Perception Survey was conducted years ago, customer and during February to March 2011. Similar to previous years, stakeholder expectation of overall satisfaction with Main Roads remains high at 97.1% our redesigned website has (96.8% in 2010). The survey is a key source of information changed significantly. As such, which is used during our business planning cycle as it highlights a project is currently underway areas we need to focus on to ensure the needs of the wider to enhance the services it community are addressed. provides to the community. Part of the Website Redesign Stakeholder Satisfaction Survey Phase 2 project will include improvements to the online In alignment with the 2k12 Strategy, Enhancing Relationships we traffic camera system, alert are committed to providing excellence through strong collaborative notification and general user relationships. The Stakeholder Satisfaction Survey, conducted interface. The online traffic biennially, is a tool that allows us to identify areas for improvement camera system has been in our business relationships with our strategic partners. The developed as a direct response survey conducted in May 2011 was enhanced to improve to the demand from our response rates and quality of feedback. In 2011, the survey was customers for a way of viewing distributed to 618 stakeholders and the results indicate that 92% traffic conditions on our of stakeholders surveyed are satisfied with their relationship with road network. Over the past us. Stakeholders contacted us on the following topics: 12 months the top five pages visited on our website were: Top 5 Reasons for Contact Percentage (%) Top Five Road signs 21.5 Websites Visited Road planning, traffic management 20.0 and new roads Road & Traffic 342,193 Information Upgrading and maintenance of roads 20.0 (landing page) Funding 19.5 52,391 Roadworks & Closures (landing page) Construction or condition 19.0 of roads for safety 52,096 Distances from Perth 51,400 Heavy Vehicle Customer Contact Centre (landing page) 40,023 News Our Customer Contact Centre (CCC) provides a 24 hour, seven-days-a-week service to the community. The CCC provides Twitter information through a range of mediums catering for diverse community needs including the Heavy Vehicle Operations industry In the past year we have seen who now enjoy the benefits of the 24/7 service offered. The our Twitter following increase. CCC continues to play an important role in State-wide incident Launched in November management by obtaining, disseminating and coordinating 2009, our twitter following information from and to the public and stakeholders. The CCC as of 30 June 2011 has was kept busy during the bushfires around the Perth Metropolitan grown by almost 400%, area and during the extensive floods experienced in the North with 4,630 followers. West of the State. During this period the CCC’s normal call To follow us on Twitter go to volumes (13,000 per month) increased to more than 55,000. www.twitter.com/perth_traffic Email continues to be a channel of choice by our customers with and click follow. the CCC responding to more than 1,400 emails per month.

70

71

visit our website. our visit

outcomes in the DAIP please please DAIP the in outcomes

information on all the desired desired the all on information

organisation. For further further For organisation. Roads website. Roads

into practices across the the across practices into enhancements to Main Main to enhancements

or partially incorporated incorporated partially or Roll–out further further Roll–out

initiatives have been completely completely been have initiatives

infrastructure projects infrastructure

implementation 96% of these these of 96% implementation

for application in future future in application for

information. In the final year of of year final the In information.

on the Stirling Alliance Alliance Stirling the on

will enable them to access the the access to them enable will

nance Model based based Model nance Gover

information in a format that that format a in information

Develop Alliance Alliance Develop

and other facilities and receive receive and facilities other and

Annual Report 2011 Annual Main Roads website. our on available

us; to access our buildings buildings our access to us; Strategy Service by stakeholders. A copy is is copy A stakeholders. by

and any events organised by by organised events any and generation Customer Customer generation outcome was acknowledged acknowledged was outcome

people to access our services services our access to people Develop next next Develop and guidelines, a positive positive a guidelines, and

the same opportunity as other other as opportunity same the launching the revised policy policy revised the launching On

Plan Access and Inclusion and Access

people with disabilities have have disabilities with people and safety requirements. requirements. safety and

Develop a new Disability Disability new a Develop

of the plan which include: include: which plan the of whilst balancing organisational organisational balancing whilst

outcomes during the lifetime lifetime the during outcomes everyone’s views and feelings, feelings, and views everyone’s

Looking Ahead Ahead Looking

us to achieve six desired desired six achieve to us that required respect for for respect required that

strategies designed to enable enable to designed strategies of the review. It was a project project a was It review. the of

a suite of implementation implementation of suite a staff were consulted as part part as consulted were staff

provides a framework outlining outlining framework a provides Advisory Council and internal internal and Council Advisory for people with disabilities. with people for

Trialling crossing facilities in South Perth Perth South in facilities crossing Trialling

inception in 1995. The DAIP DAIP The 1995. in inception as the Customer Service Service Customer the as

with disabilities since the plan’s plan’s the since disabilities with and key stakeholders such such stakeholders key and

addressing the needs of people people of needs the addressing responses to media articles articles media to responses

we have already made in in made already have we was also conducted on on conducted also was

the significant progress that that progress significant the wider public. Blog analysis analysis Blog public. wider

will add further emphasis to to emphasis further add will to collect opinions from the the from opinions collect to

the community. The Plan Plan The community. the and surveys were conducted conducted were surveys and

as any other member of of member other any as gathered their requirements requirements their gathered

rights to access our services services our access to rights needs; safety advocates advocates safety needs;

and carers, have the same same the have carers, and members to understand their their understand to members

with disabilities, their families families their disabilities, with to meet with grieving family family grieving with meet to

in recognition that people people that recognition in road users. Time was taken taken was Time users. road

DAIP has been produced produced been has DAIP The maintaining road safety for all all for safety road maintaining

for all Western Australians. Australians. Western all for community needs whilst whilst needs community

for a better quality of life life of quality better a for to ensure it still reflected reflected still it ensure to

State Government’s vision vision Government’s State Memorial Policy and Guidelines Guidelines and Policy Memorial

is committed to achieving the the achieving to committed is a review of our Roadside Roadside our of review a

Launched in 2007, our DAIP DAIP our 2007, in Launched This year we completed completed we year This

Inclusion Plan (DAIP) (DAIP) Plan Inclusion Policy Review Review Policy

Disability Access and and Access Disability Roadside Memorial Memorial Roadside

e evc 5 ,5 +1,400 2,155 755 Service New Tweets

e evc 6 ,7 +2,710 3,670 960 Service New New Twitter followers Twitter New

3221,7 604+2,143 16,014 13,871 13,292 Email Enquiries Email

165,363 183,140 239,782 +56,642 +56,642 239,782 183,140 165,363 Telephone Calls Calls Telephone

Customer Contact Statistics Contact Customer 0921 01Variance 2011 2010 2009 Case Study

Revegetation 6 Mile – A Community Effort

In April 2010, the Goldfields–Esperance Region completed the 6 Mile Climbing Lane Project in Esperance. The construction works included the removal of a large area of invasive plants species, spraying and treatment of additional areas of weeds, followed by revegetating the cleared area by spreading native seeds.

Seedling planting as part of the revegetation 6 mile project.

Local Esperance community On 15 August a huge Working together with the groups saw this as an community based effort was Esperance Weed Action Group opportunity to improve the underway to plant 6,300 and with the assistance of picturesque approach into seedlings. Esperance Regional the Shire of Esperance, we Esperance and to replant the Forum and Southcoast Natural were able to bring together areas with native plant species Resources Management the community and achieve endemic to the Esperance provided all seedlings through a good outcome. Not only Region. The groups worked the Lake Warden Recovery will the planted trees uptake with Graduate Environmental project. We supplied the traffic excess water recharge and officer Simon Weighell and control but it was the local reduce wind erosion, but also Project Managers Bran Fire Brigades who provided reduce the impact of invasive Van Berkel and Steve Cole the brawn and laboured hard weed species and help protect initiate get the revegetation to plant all of the seedlings. the natural biodiversity at planting project. Present on the day was the entrance to Esperance. Pink Lake Fire Brigade, This is one of many ways 6 Mile Hill Fire Brigade and in which we work with the Quarry Road Fire Brigade community towards preserving along with other members of our environment. the local community who also donated their time. Overall, there were approximately 50 volunteers lending a helping hand on the day.

72 Case Study

Community Satisfaction Achieved through the Indian Ocean Drive Stage 2 (Lancelin-Cervantes) Project

The Lancelin to Cervantes section of the Indian Ocean Drive project was the first major road to be constructed under Main Roads direct management for more than ten years. Completed nine months ahead of schedule and significantly under budget, this project was a great success which delivered outstanding community benefits.

A key project priority was to keep the community well informed during all stages of the project, which included maintaining a clear and consistent communication channel while building and sustaining close, collaborative working relationships.

Community and Stakeholder Engagement Officer, Samantha Gordon was part of the engagement team that used various communication channels such as reference Cervantes Primary School children planting trees in an area designated for revegetation on Indian Ocean Drive. groups, our website, project newsletters and displays to The Project Director Officially opened in September reach various community Jeff Anderson said “the 2010, the Indian Ocean Drive is members and stakeholders feedback received showed envisioned to foster economic that were impacted by the the community was highly opportunities for the Central road project. This process satisfied with the road project Coast Region; support ongoing ensured that Main Roads and considered it to be a long development of the tourism worked collaboratively awaited addition to the region”. industry by opening up the with the community to coastline to the motoring achieve satisfactory project Other key community benefits public; provide a faster, Main Roads Annual Report 2011 outcomes for both parties. delivered included the improved link to Perth; reduce This communication strategy integration of the Project and the distance and travel time was vital in enabling minimal staff into the community which for local and light commercial impact and disruption to be provided a significant boost traffic commuting between caused to the local community to the local economy through Lancelin and Cervantes and throughout the project. utilising local produce and improve access to medical and services wherever possible. educational facilities. This included securing the use of local accommodation for For further information on the the more than 100 contractors project and opening ceremony, and staff. please refer to the case study on page 36.

73 74 Regional Employees Note: Our Employees Workforce Profile towards “creating ourworkforce forthefuture”. we seekopportunitiestodevelopourpresent dayworkforce, butalsowork Our peoplemakingasignificantdifference inthecommunity, notonlydo Outcome Creating aWorkforce for theFuture O

No. of Employees Fixed-Term Contracts(Headcount) Part-Time Employees(Headcount) Full-Time Equivalent(Average) Permanent Employees(Headcount) (Headcount)

10 20 30 40 50 60 70 80 ur People 0 higher thanthenumberofFull-T Some staffdonotworkonafull-timebasisandthereforethetotalnumberofpermanentemployeesinthistableis

Gascoyne 22 Employees Goldfields 23 Esperance 41

Great (As at30June2011) Southern ime Equivalents(FTEs)reported. 32 Kimberley Workforce Statistics 33 Mid West 27 Pilbara 0921 2011 2010 2009 66 South 1,002 1,070

West 17 38

Wheatbelt 36 North

Wheatbelt 26

South 1,043 1,098 52 9 Employees 1,018 1,070 58 18 Key Performance Indicators

Women in Leadership

Women in Leadership Level 2009 2010 2011 Level 5 & Specified Callings Level 2 45 48 49 Level 6 & Specified Callings Level 3 21 27 26 Level 7 & Specified Callings Level 4 7 9 12 Level 8 & Specified Callings Level 5 1 1 1 Total (Headcount) 74 85 88 Total Permanent Women in Main Roads 282 299 300

Awards

National

inalist for the

of the Year Award • AHRI – F Lynda Gratton

RecognitionCEO yer of

Leader

• HRCompass Awards – HighlyMastertek Commended Award for Emplo Choice (Public Sector).

Creating our workforce for the future.

Attraction and Retention

Development Employee Retention 2009 2010 2011

Development Employee Retention % 88% 87% 85% Main Roads Annual Report 2011 Total Development Employees 146 134 117

Note: The rate of Development Employee retention also takes into account Cadetship and Scholarship Students, who do not form part of the Main Roads WA FTE count until they graduate.

Applications Received

Calendar Year 2009 2010 2011 Positions advertised 101 67 45 Applications received 1,361 1,000 649 Average applications per advertised position 13.6 14.9 14.3 75 Introduction

The “Creating Our Workforce for the Future” strategy is the key to creating an organisation where people embrace and accept those who aspire to bring innovative ideas, skills and perspectives to work. This strategy expands on one of the key areas of focus from our 2k12 Strategic Plan. It aims to ensure that the right people are attracted and retained to address future skill and competency needs that will sustain us into the future. Throughout the year work continued on implementing a range of innovative, leading edge initiatives aimed at creating a workforce for the future based on a philosophy that people are the key to a competitive edge.

Achievements

The achievements in this section are separated into the following areas; Attraction and Retention, Developing Capabilities, Promoting Diversity and Values-Driven.

Attraction and Retention

Recruiting the Right People Workforce Planning

During the year various challenges presented opportunities for Improvements continued us to review and improve the way we manage our resources. to our workforce planning To address candidate care, we introduced an online vacancy process and tools. With the tracking system to enable applicants to view the progress of a establishment of the transport vacancy. A corporate Key Performance Indicator for recruitment portfolio, we have taken the timeliness was implemented to support transparency in opportunity to work together recruitment and to provide incentive to panels to act swiftly with with our portfolio partners recruitment processes. Over the past 12 months our Attraction and recently commenced and Retention Branch advertised 45 external permanent positions, work to integrate workforce receiving 649 applications in total. The previous year we advertised planning and building 67 permanent positions, receiving 1,000 applications. This signifies capability across the portfolio. a slight decrease in the average total number of applicants for We have also developed a positions averaging 14.3 applications per position compared to functional and innovative 14.9 in the previous year. A “Potential Employee Database” is approach to workforce due to be rolled out in 2011 to assist with targeting and attracting planning which engages a potential employees with specific skills required. higher level of participation from senior managers and supports succession planning, Age Profile (As at 30 June 2011) knowledge management, capability development and 35 development employee 2011 30 32 programs in line with our % 31 30 25 2010 strategic direction. The 20 24 23 23 2009 following table shows our workforce age profile which 15 17 16 16 15 15 15 16 demonstrates the importance 10 14

(Headcount) 11 of knowledge management No. of Employees 5 and workforce planning for 0 our future. <30 30-39 40-49 50-59 60+

76 Careers and Developing Capabilities Training Expo

Over the past year, we Development Employee Programs have participated in several Careers Expos highlighting We have been actively promoting the development of our next our community involvement generation workforce through our nine Development Employee and the innovative ways Programs enabling graduates to develop their skills while we attract people to our professionally enhancing and building their careers in a practical organisation. Attendees environment. The success of our programs through graduate included students seeking commitment to their career development and progression vacation work employment opportunities is evident by the development employee turnover and study support; individuals rate being 1.4% and our total annual employee turnover rate is looking for a career change below 7%. Our graduates receive valuable experience on the or work experience and program through diverse rotations, mentoring, the Development recent graduates. Some Employee Leadership Program and continued alliance with of the regional expos we Engineers Australia Professional Development program. participated included the Carnarvon Community Careers and Training Expo TechXchange and the Boddington Senior High School Careers Expo This program is an initiative that has been running very successfully which provided attendees since 2005. The one-hour monthly forum provides an opportunity with information on the for technical experts to share their knowledge and experience career opportunities available with other employees and technical partners. The sessions are through cadetships, graduate aimed at younger less experienced employees who are looking to programs and other paths. improve their technical skills and network with our technical gurus. We also attended metropolitan The sessions include three 20–minute presentations on a range expos alongside other major of topics and are a valuable opportunity to raise awareness of organisations including the technical issues and share ideas and knowledge. Big Meet, Curtin Careers Fair and the Young Engineers Face Competency Development to Face Expo. It is essential that we are able to maintain and increase our workforce capability which is the aim of the competency based approach. This system takes a targeted approach to align the development of technical skills, knowledge and experience with operational requirements, delivery and succession planning. The two year pilot program which ended this financial year resulted in more than doubling of the Engineering Associate capability when looking at indicators such as retention, competency development, satisfaction and delivery. This has resulted in a respective increase Main Roads Annual Report 2011 in the value and complexity of work undertaken. An independent evaluation was completed on the pilot program for a report to Government at the end of the pilot. Work has continued with substantial progress made towards further roll-out of the competency development system to priority functional groups across the organisation.

A variety of forums are used to attract people to our organisation. 77 Giving the Green Light to Accreditation Course for Masters Placement Students Bridge Inspectors

Over the past year we have played host to Masters students For the first time, our from the University of Western Australia (UWA) and Curtin Structures Engineering Branch University. We welcome the contribution that students make to held a two day course to the organisation through added capability and the completion of provide training to qualified complex projects which significantly adds to our knowledge base. and experienced Bridge To find out more about the experiences of our placement students, Engineers and Associates. please see the story below: The aim of course participants was to become accredited to undertake detailed bridge inspections on steel and concrete bridges throughout the State. Training helps to provide consistencies between different bridge inspectors in how defects are assessed and how the condition of each bridge clearly determines the priorities for maintenance works. In addition this course builds a pool of accredited inspectors who are able to assist the Structures Engineering Branch.

Completion of Asset Management Development Program

Our pilot Asset Management Development Program which commenced in June 2009 was officially completed in Masters placement student, Annie Schmitz. September 2010. Participants attended a recognition and Annie Schmitz Award ceremony to mark the successful conclusion of the As part of her Masters in Organisational Psychology at UWA, program. The program was Annie spent three months working in the Organisational delivered jointly by Chifley Development Directorate. The aim of her project was to review Business School and GHD, the Integrated Services Arrangements (ISA) change management and resulted in four of the process and to provide recommendations to enhance future participants being awarded the change management initiatives. We were the first of three Vocational Graduate Certificate placements for Annie. Annie said that she was grateful to be able in Physical Asset Management. to start off her placement rounds with Main Roads as she has found it to be a friendly and supportive organisation. She has found the transition from University to the workplace eye-opening and has noted a distinct difference between theory and practice. Annie’s project entailed working very closely with the ISA Team. Her report and recommendations will form the basis for our ISA change management methodology with broad application across a range of initiatives.

78 Gary Norwell Awarded Austroads Medal

Executive Director of Strategic Asset Management Development, Gary Norwell, was awarded the Austroads Medal which recognises exceptionally meritorious contribution to Austroads and the achievement of its objectives and its mission over a sustained period. The prestigious medal was awarded to Gary at a dinner Main Roads hosted with the World Road Association and the Austroads Board during April 2011. The dinner was attended by more than 25 heads of road agencies from across Australia and the world. The Austroads Medal is the highest honour that Austroads can bestow and has only been awarded a handful of times since Austroads inception.

The World Road Association and Austroads Board Dinner (from left) Gary Liddle (Chairman Austroads Board), Gary Norwell (with his Austroads Medal) and Menno Henneveld.

Employee Career Inspiring Innovation Lunch and Learn Development Seminars The 2010 Managing Directors During the year 77% of Award for Innovation was Recently developed by our the eligible workforce won by Louise Adamson, Learning and Development completed an annual Joe Todorovski and Branch, the Lunch and Learn Individual Development Plan Ryan Grieve for their creative sessions were designed to with over a quarter of these approach towards the broaden employees thinking also completing a 6 month development of a procedure and to encourage creativity review. This represents a 12% to determine the cement throughout these lunchtime

improvement from the previous content of road pavement courses. The workshops Main Roads Annual Report 2011 period. Improvements have material. Louise, Joe and complement key components been made to the process Ryan are currently continuing of our leadership framework in order to achieve a higher with research in the hope it and include strategy, completion rate. will be of significant benefit innovation, leadership and to Main Roads and the wider values. Each session ran community in the future. for 45 minutes and allowed employees to leave the workshops with useful tips and tools to apply to their own working life. All sessions were presented by Curtin University and included kits designed to engage leadership, management, creativity and innovation. 79 Promoting Diversity

Our Road to Diversity Women in Management Policy There is strong emphasis on promoting equality within Our Diversity Committee began the year with a strong focus on Main Roads which includes our lack of female representation at our senior levels. A large ensuring our workplace is amount of consultative effort went into the creation of a ‘Women free from harassment and in Management’ Policy Statement which included principles, discrimination and that all objectives and an Action Plan to attract, retain and develop employees have equal access women within Main Roads. We are also seeking to increase the to training, progression and presence of females in technical fields and management positions. promotion. We aim to create The Policy and Action plan was completed in December 2010 a richer, diverse workforce. and launched at the 2011 centenary of International Women’s Focus has continued on the Day. The Action Plan is now being implemented and we will be implementation of a number benchmarking ourselves to gauge our level of success. Current of initiatives in our Diversity statistics show women in management levels are progressively Plan – The Road to Diversity. increasing (see page 75), however we strive to further increase These proposals closely these figures in coming years. align with the Equity and Diversity Plan for the Public Sector Workforce a whole-of- Harmony Week government initiative aspiring Harmony Week allows us to celebrate the richness and diversity of to increase diversity in the our employees and the added value this brings to our organisation. State’s workforce. Below are This year tasty international treats were once again on display with some of the initiatives that our all Directorates and Regional offices holding events that included Diversity Committee has been morning teas and lunches. This enabled staff to bring and share focusing on. dishes that represented their heritage from all parts of the globe.

Our Annual Family Day.

80

81

employees have a say in their work conditions and remuneration. and conditions work their in say a have employees

workshops are being held throughout the State to ensure ensure to State the throughout held being are workshops

our next Enterprise Bargaining Agreement and consultative consultative and Agreement Bargaining Enterprise next our

rostering for shift workers. Work has already begun on developing developing on begun already has Work workers. shift for rostering

retirement, and creating more effective and efficient ways of of ways efficient and effective more creating and retirement,

through increasing flexibility around working hours and phased phased and hours working around flexibility increasing through

reflect our commitment to family values and new ways of working working of ways new and values family to commitment our reflect

for a two year term expiring in February 2012. The agreements agreements The 2012. February in expiring term year two a for employees were finalised in May 2010. The agreements are are agreements The 2010. May in finalised were employees

Annual Report 2011 Annual Main Roads

Negotiations for the three enterprise agreements covering covering agreements enterprise three the for Negotiations

Enterprise Bargaining Agreement Agreement Bargaining Enterprise

donate to selected charities throughout the year. year. the throughout charities selected to donate

giving program’ offered to staff through payroll enabling them to to them enabling payroll through staff to offered program’ giving

complements other initiatives including our ‘workplace ‘workplace our including initiatives other complements a few. This few. a

name to WA Council Cancer the and WA Kids SIDS, Foundation,

supported a number of charities including the Starlight Children’s Children’s Starlight the including charities of number a supported

more than $6,000 in flood relief. Throughout the year we also also we year the Throughout relief. flood in $6,000 than more Contracts of Employment. of Contracts

Queensland. We held a wide range of events and staff raised raised staff and events of range wide a held We Queensland. eement and and eement Enterprise Agr Enterprise

later we experienced floods closer to home in Carnarvon and and Carnarvon in home to closer floods experienced we later the 2012 Main Roads Roads Main 2012 the

Vision’s Pakistan flood appeal when only four months months four only when appeal flood Pakistan Vision’s World Develop and implement implement and Develop

Many areas held a morning tea to help raise funds towards towards funds raise help to tea morning a held areas Many

ogression System ogression Pr

areas to come together to raise money for much needed aid. aid. needed much for money raise to together come to areas

Competency Based Based Competency

A number of natural disasters across the world prompted all all prompted world the across disasters natural of number A

Implement the the Implement

Giving back to the Community Community the to back Giving

through iRoads through

ogress their innovation innovation their ogress pr

Route” for employees to to employees for Route”

work. of our of

Develop an “Innovative “Innovative an Develop

allows our families and friends to become involved in all aspects aspects all in involved become to friends and families our allows

as well as new and upcoming projects and events. In turn it it turn In events. and projects upcoming and new as well as Actions Policy

family and friends outlining past achievements, current projects projects current achievements, past outlining friends and family in Management Management in

community. Each Directorate puts together a display for visiting visiting for display a together puts Directorate Each community. omen omen deploying our W our deploying

to the organisation and how they are associated within the the within associated are they how and organisation the to Continue to focus on on focus to Continue

healthy work-life balance recognising each area’s contribution contribution area’s each recognising balance work-life healthy

Family Day has become an annual tradition that promotes a a promotes that tradition annual an become has Day Family Looking Ahead Ahead Looking

Family Day Family

organisation: a values-based a

belongingacross all levels. The following are just some examples of initiatives that underpin being being underpin that initiatives of examples some just are following The levels. all belongingacross

these values and behaviours so that all employees are able to embody a sense of leadership and and leadership of sense a embody to able are employees all that so behaviours and values these

Together; Professionalism and Family. Everything we do as an organisation needs to support support to needs organisation an as do we Everything Family. and Professionalism Together;

values are Roads Matter; Embracing Challenge; Excellence in Customer Service; Working Working Service; Customer in Excellence Challenge; Embracing Matter; Roads are values Our

decision making processes and relationships with each other, our customers and partners. partners. and customers our other, each with relationships and processes making decision

Our values form our foundation and represent our culture; guide our behaviours and influence influence and behaviours our guide culture; our represent and foundation our form values Our Values-Driven Values-Driven Case Study

Community of Practitioners-Network Management

The Community of Practitioners (CoP), comprising Main Roads Regional Network Managers, Asset Managers, Regional Managers and Regional Services staff, recently met in Port Hedland to discuss progress with its important agenda of developing and reviewing systems, processes and tools for the new Integrated Services Arrangements (ISA) currently being deployed across the State.

In his opening address Executive Director Regional Service, John Erceg commended the CoP’s approach and reaffirmed the importance of the work being undertaken in achieving strategic ISA objectives and in turn our corporate objectives. Community of Practitioners Network.

He welcomed the decision CoP members were able Very informative presentations of the CoP to include to report that the work on from Planning and Technical representatives from the a Surfacing Assessment Services Directorate staff Integrated Service Providers Guideline for chip seals was generated much discussion as members as this would now complete and ready for and a strong commitment broaden the vast body of endorsement by Regional for ongoing dialogue on knowledge and experience that Managers prior to submission important issues such as data can be shared and used to to the Asset Management completeness accuracy in collectively improve capability. Steering Committee for Integrated Road Information John acknowledged that corporate endorsement. System (IRIS), integration the membership base would Progress was also reported of financial and asset further expand as the focus on other projects such as the management systems, and shifted from development of development of a process the application of road safety essential operational tools to distribute maintenance initiatives in relation to verge to more strategic areas and funding across regions, the management. An important commended the group on implementation of a Financial part of the regional meetings its commitment to actively Tracking System to link is for members to gain a engage all areas of Main financial and maintenance State–wide appreciation of the Roads. He also emphasised management systems, and network management issues the importance of the CoP’s improved tools for a more we face. ‘continuous improvement’ integrated approach to approach in ‘getting runs strategic link planning. It was The CoP represents an on the board’ by the early also agreed that there would important networking, implementation of initiatives be further refinement to the innovative, knowledge sharing and then refinement with time. adopted 10 Year Network approach to improve our Plan process to more capability and practices in key clearly identify the level of areas of our business. deferred maintenance.

82 Safety, Health and

th Safety Well-being 15 Plan

Certificate

WorkSafe – Think Safe WorkSafe Certificate Award

Plan – Work Safe Achievers Awards • 2010 – Home Safe CertificateWorkSafe of Achievement • Platinum Individual – Infrastructure Delivery Directorate WorkSafe Best • Gold– Access Alliance Recognition for Outcome • Silverof Achievement Awards – Lancelin-Cervantes Stage 2 Projecty The safety, health and well-being • FinalistContribution Lonnie to Safety & Health – Phil Ladner of our people is essential to the gement Award. • 2010– OccupationalHealth and Safety,Injur success and sustainability of our business. Mana

Key Performance Indicators

Lost Time Injury Frequency Rates

6 5 4 3 Main Roads Number of LTIs 2 Main Roads LTIFR Number of 1 Lost Time Injuries 0 Jul-Sep Oct-Dec Jan-Mar Apr-Jun

Return to Work Success Rate/Rehabilitation of Injured Employees

100% of injured workers returned to full time work within 28 weeks of sustaining their injury. Main Roads Annual Report 2011

Exercise and Consult Participation

2009–10 2010–11 % Increase 1 on 1 Consults 370 525 42 Healthy Heart Checks 198 195 -2 Fitness Programs 60 126 110 Blood Pressure checks 387 987 155 Average Class Participation 6.7 8.2 22

83 Introduction

The past year has seen a formal transition in our management of Occupational Safety and Health (OSH) towards a more holistic well-being based approach. Our corporate safety slogan Think Safe – Work Safe – Home Safe continues to underpin the emphasis we place on behavioural safety, safe work practices and ongoing health and lifestyle education to support the well-being of our people. The OSH function has recently been integrated with the health and well-being function to create the new Health, Safety and Wellness function to better reflect the pro-active approach taken towards the care of all elements of our employees.

Achievements

This section provides an overview of the safety, health and well-being achievements over the past 12 months.

Third Party Certification Organisational OSHtoberfest 2010 OSH Commitment Our Occupational Safety and and Engagement OSHtoberfest is our premier Health Management System OSH event that ties in with (OSHMS) was recertified to As required under the Safe Work Australia Week. Australian Standard 4801 in Occupational Safety and The theme for 2010 was April 2010 and subject to a Health Act 1984 and the individual well-being and to number of periodic surveillance Occupational Safety and support this we hosted a audits during the year. There Health Regulations 1996, we number of presentations based were no non-conformances continue to be committed to around stress management, raised against our systems in providing a safe and healthy first aid skills around the home, any of these audits, however work environment for our surf and beach awareness a number of improvements people that is based on strong and skin cancer awareness. were identified through both collaborative relationships and We also hosted a health and external audits and our own visible leadership at all levels lifestyle expo where staff internal auditing program. of the organisation. Through could take part in a number Complementing our AS 4801 the OSHMS’s multilayered of alternative and specialist certification is the WorkSafe committee structure (at both services such as live blood Plan which provides further the Directorate and regional analysis, iridology, reflexology, guidance on the continuous level) management plans are body composition scanning development and improvement based on both corporate and fitness assessments. of our systems and culture. initiatives and local issues and The purpose of the workshops We currently have a Gold level feedback into the corporate was to inform our people of certification and are moving system to ensure that we the large number of services towards the Platinum level. are aware of our overall that exist which may help A gap analysis was conducted risks and can manage these them manage their own health in September which highlighted appropriately. Our committees and well-being, by providing some key areas of focus to comprise senior management, a safe environment in which move the organisation forward. employees and elected safety to try them. As in previous and health representatives. years the presentations and The commitment from these activities were well received safety champions provides a ensuring that this event forum for two-way discussions remains a permanent fixture on issues and ensures a on our calendar. conduit through which all our people can be informed and 84 involved in OSH matters. OSH Vision Workshop

In November we undertook a strategic review of our current practices and intended direction with regards to management of OSH in the years to come. With strong representation across the organisation including representatives from the newly engaged partners within the ISAs, this workshop identified a number of key issues that the organisation could focus on in the future. Key items identified included the integration of well-being into our existing approach to OSH, alignment of our partners and Main Roads systems under the new ISAs and further development of a culture of both personal and interpersonal responsibility.

Preventative Health Measures

As in previous years we have taken a proactive approach to helping our people manage their health. Around 450 employees took part in our annual flu vaccinations and around 400 participated in skin cancer screening programs. We also continued our commitment to providing a confidential Employee Assistance Program for our staff and their families to assist with a number of challenges that they make need to Leo Coci maintaining his fitness at the Main Roads Boxercise class. deal with. This year we also had a number of staff make Executive Director Infrastructure Delivery, significant life decisions to Leo Coci Takes Ownership and Responsibility for His Health take responsibility for their own health, and shared their “In July last year, I received a health wake-up call a number of journey with the rest of the years earlier than I might have expected. I had chest pains over organisation, which has in a number of weeks and thinking that it may be related to a turn inspired others to do the possible sprain or a case of the flu, it turned out that I had a heart same. As part of our Health condition that needed addressing. Being more than 25 kilograms and Lifestyle Program we overweight, carrying that load with an underperforming heart once again sponsored a large no longer seemed a sensible thing for me to do. As someone number of our people taking suggested to me, it was like going on an overseas holiday and part in numerous community carrying your 25 kilogram luggage everywhere with you. So I made events such as the City to Surf, the decision to jettison the excess baggage. As a person that has Freeway Bike Hike, Great Bike always enjoyed eating healthy food and the not-so-healthy foods Main Roads Annual Report 2011 Ride, HBF Run for a Reason also (all without exercise) I decided to simply concentrate on eating and Corporate Cup activities. healthily, watching the proportions and walking for 30 minutes every day. I set myself a target of loosing around 1 kilogram a week over six months. Having made the commitment I did nothing more than take heed of the advice, opportunities and important information on healthy living that surrounds me every day at home and at work. I have now lost over 20 kilograms and have to say that the last 2 or 3 kilograms were lost at a much slower rate”.

“After recently visiting my specialist I was taken off heart medication and advised that I did not need to see him for another five years. My advice to everyone is to take advantage of the opportunities surrounding them to live a healthier lifestyle”.

85 ISAs and Alignment of Systems

One of the major shifts in the way we undertake our business is the new Integrated Services Arrangements (ISA’s). From an OSH perspective teaming up with some of the The Trailer Mounted Attenuator on its first outing on Kwinana Freeway. leaders in industry presents a number of strong opportunities to share knowledge and Trailer Mounted Attenuator incorporate improvements into our existing systems Our Materials Engineering Branch (MEB) purchased a Trailer and culture. We are also Mounted Attenuator (TMA) to protect personnel carrying out taking a leadership role in testing on roads, other road users and to provide leadership getting the various parties in roadwork’s safety practice in the State. The TMA is also working with each other to commonly known as a crash cushion or crash attenuator and is ensure consistency where a device intended to reduce the damage to vehicles or injury to possible whilst still allowing drivers resulting from a collision. MEB staff Steve Halligan, Garnet customisation to suit specific Gregory and Craig Phillips developed a Job Safety Analysis (JSA) regional requirements. for field testing undertaken by MEB staff. However, during the course of that process it was determined that there was a major or catastrophic risk consequence associated with these activities and the likelihood of occurrence was higher when not done in conjunction with Construction or Maintenance works. Typically the testing undertaken by MEB has one or two light vehicles on site working under traffic management. This is in contrast to a maintenance or construction site where large items of plant present a highly visible deterrent to vehicles entering the work site.

Performance Review

Our reporting processes focus Lost Time Injuries on a combination of both lag and positive indicators to A Lost Time Injury/Disease capture both the outcomes of (LTI/D) is defined as an injury incidents and also to identify or disease that results in the the proactive behaviour our affected employee being staff engages in to identify unable to work for one full shift and manage hazards in the or longer. The following graphs workplace. Some of these show our performance and indicators include hazards that of our Contractors during reported, close out of these the 2010–11 year: hazards, attendance at OSH committees and toolbox meetings, induction of new staff and the undertaking of workplace inspections.

86 OSH Performance by Main Roads and Contractors

3.0 5 Main Roads Number of LTIs 2.5 Contractors Number of LTIs 4 2.0 Main Roads LTIFR

1.5 3 Contractors LTIFR

1.0 (LTIFR) 2 0.5

0.0 1 Jul-Sep Oct-Dec Jan-Mar Apr-Jun Number of Lost Time Injuries

Month Lost Time Injury Frequency Rate

As can be seen, during 2010–11 we sustained Summary of all incidents 7 LTI/D, which resulted in a decrease in our by type and severity Lost Time Injury/Disease Frequency Rate from 3.9 to 3.4 serious injuries sustained per million Incident Type LTI NLTI NMI Total hours worked. Our contractors also sustained 7 LTI/D resulting in a decrease in their LTIFR from Equipment 1 23 10 34 3.6 to 3.5. Slips/Trips/Falls 1 16 7 24 Although our ultimate goal is for zero harm, Other - 9 9 18 these results are a slight improvement on our Vehicle 1 2 12 15 performance during 2009–10. The majority of our serious incidents involved manual handling/ Sprains/Strains 4 10 - 14 ergonomics, as such during 2011–12 we will Environment - 2 2 4 be refocusing our attention towards looking at engineering and design controls to minimise Human Factor - 2 1 3 these risks. A breakdown of our incidents by Bites/Stings - 2 - 2 type is outlined in the associated table. Health - 2 - 2 Total 7 68 41 116

2009–10 2010–11 2010–11 Indicators Achievement Actual Target Actual Fatalities 0 0 0

Frequency Rate 3.9 0 or 10% reduction 3.4

Incidence Rate 0.8 0 or 10% reduction 0.65 Main Roads Annual Report 2011

Severity Rate 12.5 0 or 10% reduction 0.0

1. Frequency rate is (the number of LTI/Ds over the previous 12 months * 1,000,000) divided by the number of hours worked during that 12 month period.

2. Incidence rate is (the number of LTI/Ds divided by the number of employees) * 100.

3. Severity rate is (the number of LTI/Ds that resulted in 60 days or more lost divided by the total number of LTI/Ds) * 100.

% Managers OSH training

Over 90% of our managers have attended OSH for Line Managers Training over the past 3 years.

87 Workers’ Compensation and Injury Management

During the past year, Main Roads incurred 22 workers’ compensation claims in total. Of these claims, nine have been finalised, with two pending and none declined. All of our injured workers returned to full time work within 28 weeks of sustaining their injury. This graph shows our performance compared to previous years:

Workers’ Compensation Claims Lodged (Approved/Pending per Financial Year)

30

25 27 27 26 25 20 22 21 21 20 15 18

10 14 14

Number of Claims 5

0 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 Period Ending 30 June

The continued implementation of our injury management system has assisted in the effective rehabilitation of return to work of employees throughout the year to their substantive roles, or to other meaningful roles if this was not deemed viable. These outcomes have been achieved through close consultation of all parties concerned in the development and delivery of customised and tailored return to work programs and the utilisation of both internal and external specialists where needed.

Total Number of Active Claims (Cumulative - All Years)

30 30 25 25 25 25 25 25 20 24 20 21 15 18 19

10

5

Number of Active Claims 0 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 Period Ending 30 June

Although the total number of active claims as at the end of Looking Ahead June is slightly higher than last year, it is influenced by a number of minor claims in late May and early June that will be closed • Further alignment of out in early July. Overall our performance in the Workers’ our OSH Management Compensation field continues to be strong, with a high rate of Systems with that successful injury management programs returning staff to their of our Integrated substantive duties in a short space of time. Services Providers • Further development of our holistic well-being based approach.

88 Case Study

WorkSafe Platinum Certificate Awarded to Infrastructure Delivery Directorate

On 19 April 2011 the Minister for Finance, Commerce and Small Business, Hon Simon O’Brien MLC, joined our Managing Director Menno Henneveld in celebrating our Infrastructure Delivery Directorate achieving the significant safety milestone of a WorkSafe Plan Platinum Certificate.

WorkSafe Plan Platinum Certificates are only awarded to organisations that are assessed as meeting the highest levels of safety management. Infrastructure Delivery is the first Directorate to reach this level in Main Roads and as such it is a great achievement. Safety is very Members of the Infrastructure Delivery Directorate with the Certificate (l to r) John Robertson, Manager Business Development; Neshko Sajtinac, Acting important to us and is reflected Management Systems Manager; Leo Coci, Executive Director Infrastructure in our Occupational Safety Delivery and James Alderton, Occupational Safety and Health Officer. and Health Policy which states “safety and health are essential Menno reflected on the role It is important to acknowledge for the well-being of our and contribution that has that this achievement people and the success and been made in achieving our recognises the contribution sustainability of our business.” vision for safety and how and dedication from a wide the Infrastructure Delivery range of people including Underpinning this statement Directorate is actively applying everyone in Infrastructure are the key principles of: these principles in everything Delivery both in offices and on that they undertake. We are the frontline. It is also important Never compromising proud of the leadership role the to recognise the regional staff safety for our employees, Directorate plays in making the working on major projects contractors and the concept of “Think Safe – Work and the many consultants and community affected by Safe – Home Safe” a reality for other contractors that help our business all of us. deliver our works.

Demanding leadership Achieving WorkSafe Platinum This achievement also and engagement in OSH status means that the recognises the significant Main Roads Annual Report 2011 from everyone Directorate is up there with the support received from the Your OSH accountability very best of our contractors whole of the organisation cannot be delegated when it comes to managing especially our Occupational safety and health. There Safety and Health Branch. OSH planning is are not too many of our Minister O’Brien commended essential for a safe and construction partners who Main Roads’ commitment to healthy lifestyle and have achieved this level of safety and the Infrastructure working environment. recognition for their safety Delivery Directorate’s long practices. It demonstrates and continued persistence the Directorate’s commitment in fulfilling the stringent to being a leader in safety WorkSafe Audits to gain the not only in the road industry Platinum Award. but also across the entire public sector. 89 Governance Practices

Governance

Outcome

Value-based processes with continuous improvements driven through our Strategic Plan.

Introduction

Our Corporate Governance system is how we direct and manage our business activities to optimise performance, achieve regulatory compliance and deliver value for customers. We are committed to ensuring that our core Corporate Governance system and processes are aligned to our values-driven management. It is imperative that appropriate core behaviours and practices are present to allow effective management of our key governance functions. Demonstration of our commitment to good governance is included in the Appendices where we align our procedures against a guide provided by Public Sector Standards.

Roadworks underway at the intersection of Roe Highway and Great Eastern Highway.

90 Our Governance Model

Minister for Transport; Housing

Enabling Legislation

Managing Director

Corporate Executive

Corporate Executive Committees Internal and External Management Review Business Improvement, Strategic, Corporate Policies, Processes, and Audit Committee, Corporate Development and Direcorate Contracts and Project Risk Management, Occupational Safety Business Plans Management, Performance Monitioring, & Health, and and Controls Review and Reporting Budget Committee

Drivers

2 2 Roads Matter k 1 1 k 2 2 Professionalism Working Together

Main Roads’ purpose is to provide safe and efficient road access that will enhance Improvement Leadership community lifestyles Main Roads Annual Report 2011 and ensure economic & Innovation prosperity

Excellence in Embracing 2 Customer Service Challenge k 1 2 2 Family 1 k 2

Compliance

91 2k12 Corporate Strategic Plan

Our Strategic Plan, known as 2k12, sets the high level strategic direction for our organisation up to 2012. It reflects the dynamic environment we operate in and represents our response to the challenges and opportunities we face. 2k12 is aligned to achieve our purpose and vision with an aim to “achieve excellence through inspiring leadership and strong collaborative relationships”. Most importantly, it helps us to work towards achieving the following five areas of strategic focus:

Strategic Area of Focus Objective To plan, develop and deliver effective Providing the right roads for WA outcome based road programs

Ensuring people and freight can move safely, Making roads work for the community reliably and efficiently across the road network

Creating an environment that will attract, Creating our workforce of the future develop and retain employees

Creating an environment that develops and Inspiring leadership recognises leadership throughout the organisation

Enhancing relationships To enhance existing and forge new relationships

The development of 2k12 was integrated with goals that outline the Government’s vision for the public sector in providing services to the community. This integrated approach to planning was based on input from across our organisation, stakeholders and the community. Through 2k12 we work closely with all stakeholders to provide efficient access to all modes of transport which will contribute to the ongoing economic development of the State and nation. The 2k12 Efficiency Index is a tracking tool used to monitor our progress on the 2k12 Strategic Plan. This index assesses the quarterly performance on the strategic outcomes of the five strategic areas of focus. Since July 2009, the 2k12 Efficiency Index is reported on a quarterly basis to our Corporate Executive team. Later this year we will see the conclusion of 2k12, and have already began reviewing what was achieved as work commences with partners, stakeholders, customers and employees as we consider our future direction.

Bunbury Port Access Road.

92 Corporate Executive

Corporate Executive consists of the Managing Director, all Executive Directors and the Directors of Budget and Financial Planning and Strategic Relationships. Corporate Executive has overall responsibility for Corporate Governance. It meets monthly to review organisational performance both directly and through a series of formally established sub-committees. Corporate Executive also has responsibility for setting the Strategic Direction of the organisation in conjunction with staff, stakeholders and the Government. Some of the key roles of Corporate Executive include assisting the Managing Director in:

Ensuring that good Committees corporate governance practices are utilised Developing, implementing, Corporate Development Committee deploying and practising This Committee is chaired by the Executive Director Organisational the outcomes sought from Development and is responsible for initiating and managing Main Roads Strategic corporate development as part of the Creating Our Workforce Plan, 2k12 of the Future strategy. This includes a focus on leadership Overseeing the development across all levels and the delivery of the Building development of Technical Capability initiative. Key achievements over the past corporate business year include: planning, budgets and organisational performance Commencing a pilot A fifth group of 13 middle against outcomes Senior Manager and managers completed Responsible financial Executive Coaching the diploma-level Middle management Program which is tailored Manager Development and performance specifically to personal Program and 29 leadership requirements Development Employees Ensuring compliance with progressed through the The two-year Inspiring all legislation, Government Development Employee Leadership Development policies and directives. Leadership Program Program progressed In achieving its role Corporate with a group of 23 A new facilitated mentoring Executive is supported high potential leaders program for 12 mentoring by a number of standing participating. Pitched at pairs has commenced at committees. Each committee is Graduate Certificate level, Heavy Vehicle Operations led by a member of Corporate the program comprises Directorate focused on Executive and reports regularly a variety of work focused supporting the achievement on its achievements and future assessment tasks aimed of individual career goals for at adding value to existing mentees and linking these direction. A table at the end of Main Roads Annual Report 2011 this section provides details of business processes to the broader Enhancing attendance at these meetings. through innovative or Relationships and Inspiring creative approaches Leadership strategies Provided training to staff in Accountable and Ethical Decision Making based on our commitment to values- based leadership and decision making.

Bunbury Port Access Road.

93 Business Improvement Management Review Budget Committee and Audit Committee Committee

This Committee is chaired by This Committee is chaired This Committee chaired by the the Executive Director Finance by the Managing Director Executive Director Finance and and Commercial Services and considers the audits and Commercial Services is the and ensures that business reviews performed by the peak decision making body for processes and systems are Management Review and Investment Planning, Program effective; promote efficient use Audit Branch in accordance Development and Delivery. of resources and supports with the Annual Audit Plan. Its objective is to ensure the sound Corporate Governance. Key operational reviews and best use of funds to achieve Key achievements over the audits undertaken over the strategic outcomes. Key past year include: past year include: achievements over the past year include: Driving the development Health Check of the of a completely revamped Metropolitan Integrated Monitoring and actioning intranet site to be known Service Agreement budgetary matters as “iRoads” Financial compliance audit Provision of strategic Oversight of the of Term Maintenance direction for project implementation of Contracts 3 and 7 development funding Phase 2 of the external and activities Follow-up review website project of pavements Supervision of transitional Reviewed Main Roads testing procedures arrangements in preparation Annual Report for new maintenance Review of project delivery arrangements Oversight of the Third development in regions Party Certified Integrated Monitoring of program Review of systems Management System strategies and structures development within to deliver outcomes linked Review of progress and Main Roads with Government objectives deliverables against the Regular compliance reviews ICT Strategy and the Supervision of managed of three regions Sustainability Strategy transfer of assets Review of IT outsourcing. between State and Adoption, alignment Local Government and gap assessment of During the year, 25 audits and measures against Global reviews were performed and Approval of the final Reporting Initiative all non-conformances and four-year and ten-year program submissions to Development and improvement opportunities Department of Treasury deployment of 2011 are being monitored by the and Finance. Corporate Business Management Review and Audit Plan process Committee. The Management Review and Audit Branch Reviewed, considered plans to conduct Financial and endorsed the results Compliance Audits and Health from tracking business Check Reviews on the seven improvements arising Integrated Service Agreements from Customer Feedback before June 2012. complaints and analysis

94 Corporate Safety, Conflict of Interest: Health and Well-being Personal Interests in Contracts with Main Roads Committee Other than normal contracts of employment of service, no senior This Committee is chaired by officers, firms of which senior officers are members or entities in the Executive Director Planning which senior officers have substantial interests, had any interests in and Technical Services and existing or proposed contracts with Main Roads. presides over all safety, health and well-being issues from Committee Membership and Attendance high level strategy through to review of individual incidents. Attendance by members of Corporate Executive during the year As one of our primary OSH communication channels, the Committee serves to inform Corporate Executive on the safety and health leadership, development, promotion, trend Budget Budget Business Business Executive Corporate Corporate Corporate Corporate Corporate Committee Committee Committee Committee

analysis, KPI review, incident Review and Improvement Improvement Management Management Development Development Safety, Health Safety, Health and Well-being and Well-being actioning and review of OSH Audit Committee activities of both Main Roads Meetings 12 9 4 3 12 9 and Contractor personnel. held Key achievements over the past year include: Menno ^10 - - ^3 - - Henneveld Maintaining certification John 10 6 4 2 11 9 to AS 4801 Erceg Further development and Des Snook 12 5 - - 7 8 implementation of a suite of Phil 10 6 - - 3 5* positive indicators based on Ladner* proactive safety health and well-being behaviour Leo Coci* 9 - - 1 8 8 Continued coordination Peter 11 7 ^4 3 ^10 4 Woronzow of the implementation and review of the John Taya 11 ^7 - - 3 9 OSH management Doug 12 8 4 3 11 ^9 system to facilitate Morgan continuous improvement Bob 5 - - - 10 - Integration of well-being Phillips into the existing safety Rob Giles and health management 11 - - - - -

system as part of a Iain 6 - - - - 5 Main Roads Annual Report 2011 holistic approach to Cameron OSH management. Notes:

^ Designates Committee Chair. * The position of Executive Director Infrastructure Delivery was substantially held by Phil Ladner until October 2010. However, he has recently moved to a new position and Leo Coci was appointed to this position as of October 2010. Phil Ladner was a member of the OSH Committee until 5 January 2011. 1. In all cases, when an officer listed above could not attend, a representative attended on their behalf. 2. Employee and external representatives on the committees are not listed. 3. Due to periods of leave, attendance figures also includes attendance by those acting in the position.

95 Ensuring Good Governance

Business Excellence Ethical and Responsible Decision Making We have been using the Business Excellence Framework since 2003 as a structured approach To support ethical and responsible decision to Business Improvement. The framework is making, Corporate Executive is supplied with amongst the world’s most rigorous business appropriate information in a timely fashion excellence models. In June 2007 we received before meetings. This information consists of recognition from Business Excellence Australia monthly financial management information; at the Bronze level and were only the fourth quarterly data related to the identification and Western Australian organisation to achieve management of risk; organisational performance this level of distinction. In 2008, we were information through the provision of a monthly awarded System Category Awards for Quality Key Performance Indicator Scorecard; status Management, Environment and Customers. reports for each Directorate; OSH Status reports In the past year we have undertaken another and Quarterly Standing Reports from each guided self assessment process. The results sub-committee. Each member of Corporate demonstrated that we continue to improve on Executive has an annual business plan for our journey to excellence. During 2011–12 we their own Directorate, which is linked to the will once again undertake independent evaluation Corporate Business Plan and the Strategic against the framework to further identify Plan. The Managing Director has a performance opportunities for improvement to our systems, agreement with the Director General Transport processes and approaches as we continue to and other members of the Corporate Executive strive for excellence. have Individual Development Plans with the Managing Director. Better Business Project Our Values and Code of Conduct The Better Business Project was developed in response to the Government’s 3% Efficiency We have established values and a Code Dividend and the need to align with the of Conduct that establishes “the way we review of our strategic planning through work around here”. This is the essence of 2k12. An organisation-wide review of how values-based management and all of our we operate was subsequently planned to employees are required to uphold our values identify where improvements and efficiencies and comply with the Code. Failure to do so could be made. It was also driven by the may attract sanctions. Corporate Executive and need to creatively and innovatively transform senior managers are also required to promote our business and operations in line with our the values. Our values form the foundation upon strategic direction. The review identified a which Main Roads is built and represent our large number of ideas and issues that impact organisational culture; guide our behaviours on organisational efficiency into the future, and influence decision making processes and resulting in 106 recommendations being relationships with each other, our customers pursued. A reporting framework was developed and partners. that allows coordinating officers to comment on the progress of each recommendation, report on the current timeframes regarding the activities of each recommendation and discuss key efficiency outcomes which have arisen as a result of each recommendation. The progress of the Better Business project is discussed monthly at Corporate Executive meetings and communicated throughout the whole organisation.

96 Corruption Prevention Compliance with Public Sector Standards and Ethical Codes Main Roads has strategies in place to prevent the Compliance issues that arose during the year regarding the misappropriation of funds Public Sector Standards included lodgement of two breach claims and inappropriate use of against recruitment, selection and appointment processes and public property that include one against the Grievance Standard. The breaches against the a comprehensive Annual recruitment, selection and appointment processes were dismissed. Audit Plan that provides a There were some concerns raised with compliance regarding the balanced mix of Financial, breach claim against the Grievance Standard and improvement Operational and Information actions were recommended. Significant actions are taken every Technology audits. In year to monitor and ensure compliance including: addition Risk Management is considered an integral Providing information about Public Sector Standards and part of the annual business Codes of Conduct on the intranet and including this information planning approach and risks in induction material are managed and monitored Correspondence to applicants for recruitment, selection and at all levels. appointment processes with details on how to access the Public Sector Standards Ongoing training provided to recruitment and selection panel members to ensure compliance with the relevant Public Sector Standards Providing an experienced independent person from the external environment for all recruitment and selection panels Providing the network of Grievance Officers with regular Grievance Officer training Reviewing and auditing all recruitment, selection and appointment processes both permanent and temporary, to ensure compliance with Public Sector Standards.

Collie River Bridge. Main Roads Annual Report 2011

97 Management Systems and Reporting

Internal Audit

A comprehensive system of internal controls is in place to ensure that there is an appropriate division of responsibilities to safeguard the assets and financial interests of the organisation. The Management Review and Audit Branch regularly assess the adequacy of internal controls within the organisation by conducting audits of our financial and management information systems in accordance with an Annual Audit Plan.

Statutory Audit

The annual independent external audit on controls, compliance and assurance is carried out by the Auditor General of Western Australia, in accordance with the Auditor General Act 2006. The Auditor General’s opinion is addressed to both Houses of the Parliament of Western Australia.

Risk Management

We have in place a Corporate Risk Management Policy and Procedure to identify, assess, monitor and manage risk throughout the organisation. Identified key risks and associated treatment plans are incorporated in the annual Directorate and Branch Business Plans and form part of the quarterly reporting cycle to Corporate Executive. RISKWEB is compatible with the risk management tool which has been developed for reporting, management and monitoring of Occupational Safety and Health risks. RISKWEB is also being developed for use in identifying, managing and reporting risks for maintenance and construction projects. The risk management procedure is subject to internal audit and an annual review of the overall risk profile of the organisation is undertaken by Corporate Executive.

Kwinana Freeway.

98 Accounting and Financial Management Reporting Management Policies Key monthly financial reports are tabled at the Budget Committee A comprehensive Accounting which comprises all Executive Directors and is chaired by the Chief Manual containing the Finance Officer. Key financial highlights are reported to Corporate accounting and financial Executive along with progress against Key Financial Performance management policies and Indicators. There is also a requirement to provide daily, monthly, procedures is maintained. quarterly and annual information to the Department of Treasury It communicates accountability and Finance. This also serves as an independent check on the for procedures within various integrity of financial reporting. responsibility areas and enhances the level of internal Freedom of Information control. The Manual enables management as well as Certain information can be obtained under the Freedom of internal and external auditors Information Act 1992. An information statement, which has been to monitor compliance with produced in accordance with the requirements of the Act, is established procedures and, available on our website. The statement provides a guide on how together with the Financial to obtain information from us under the Act as well as information Management Act 2006 and available without a formal application. Our Freedom of Information the Treasurer’s Instructions, Coordinator can be contacted on 138 138. During the year we is available online to received 38 applications with the majority of applications related all employees. to potential third party liability claims and land acquisitions matters associated with road projects. The table below provides further Integrated statistics on applications received: Management System Freedom of Information Applications We have adopted a systematic approach to business Year 2008–09 2009–10 2010–11 performance improvement Received 45 47 38 based on quality management principles. The Integrated Internally Reviewed nil 2 4 Management System brings Externally Reviewed nil 2 2 together all of these third party certified processes into a single structure. During the year we maintained certification of our entire Management System. Continuous improvement is the cornerstone of all of the management processes and procedures. Main Roads Annual Report 2011 Current Certification Standard Processes Quality Management System ISO AS/NZS Project Management, Contract Management, Term 9001:2008 Network Contract Administration, Supply, Corporate

Environmental Management System Environmental ISO AS/NZS 14001:2004

Occupational Health and Safety Management Occupational Health and Safety System AS/NZS 4801:2001

99 Legal Compliance

The following identifies the empowering legislation that Main Roads operates within:

Main Roads Act Part 4 of the Road Traffic (Vehicle Standards) The Main Roads Act 1930, Regulations 2002 provides as last amended in 1997, the Commissioner with establishes the Commissioner the authority to issue of Main Roads as a corporate permits for Restricted body and sets out the powers Access Vehicles that and duties of the office. The exceed certain mass and Commissioner of Main Roads dimension limits, as defined administers the Main Roads in the Regulations. Act and the accompanying Regulations, and is We have processes and accountable to the Minister controls in place to ensure that for Transport. we comply with other State and Commonwealth legislation and regulations which impact The Office of Road on our activities. Safety Empowering Legislation Delegation of Authority The Road Safety Council Act 2002 and the Road Safety Our Delegation of Authority Council of Western Australia Manual exists to clearly Governance Charter 2008 are define the administrative the enabling legislation for the responsibilities of officers and Office of Road Safety. give them sufficient authority to carry out their day-to-day tasks. The Delegation of Other Empowering Authority is in accordance Legislation with the Main Roads Act 1930 and the principle of The Land Administration public administration set out Act 1997 provides powers in Section 7(d) of the Public for the resumption of land Sector Management Act 1994. Section 84 of the Road Employees are aware that Traffic Act 1974 provides delegation limits are specified a right of recovery for in the Delegation of Authority road damage Manual and that they must not Regulation 297 of the Road be exceeded. Traffic Code 2000 provides the Commissioner with the Ministerial Directives power to erect road signs and traffic signals, and There were no directives issued install road marking by the Minister for Transport under Section 19B of the Main Roads Act 1930 during the year.

100 Record Keeping

The State Records Act requires that we maintain a Record Keeping Plan. The Plan has been approved by the State Records Commission and reflects our current functions. The following is a summary of compliance requirements and achievements during the year.

The requirement to A series of record keeping undertake efficiency and training programs to effectiveness of our record complement our online keeping systems not less training. Modules than once every five years include Record Keeping has been met Awareness, TRIM Online and Indexing were held. Term Network Contracts With the introduction of have been replaced new ISAs a special focus on by Integrated Services training is being delivered Arrangements (ISAs). with expected completion Our Plan has been to all new users by updated for the ISAs and December 2011 includes new policies and procedures, updated The TRIM Online course Retention and Disposal has been revised to Schedule, new business reflect the latest Version 7.1 classification terms to reflect released earlier this year. our new business needs We provide group, one-on- and an updated Records one and specialised subject Disaster Management and training as required Recovery Plan is nearing A two day Records completion and approval Seminar was conducted A preservation project for staff undertaking record identifying the storage keeping duties providing an of inactive employee opportunity for networking, records to comply training and the sharing with recommendations of knowledge amongst identified by the State Records Officers and Records Commission is ISA personnel being deployed Our induction program A new position of Archiving addresses employee roles Main Roads Annual Report 2011 Officer identified to create and responsibilities in a State-wide Records regard to their compliance Archiving program to meet with the organisation’s compliance to our Record record keeping plan Keeping Plan through both mandatory Record Keeping Awareness and TRIM Online courses for all new starters. In addition updates and tips are regularly provided in our State-wide weekly Artwork at the Lymon Bridge near Mandurah. newsletter Weekly Roads Wrap.

101 Procurement Policies and Procedures

Our procurement policies and procedures comply with the Pricing Policies of requirements of the State Supply Commission and are certified to Services Provided AS/NZS 9001:2008. Policies are documented in the Procurement Management Manual and all tendering and contract administration The supply of goods and procedures are documented in the Tendering and Contract services we undertake Administration Manual. An ongoing compliance program is in place represents works undertaken to ensure that these policies and procedures are implemented. for other public sector and A Tender Committee, consisting of two experienced senior officers private bodies on a cost from our organisation and two senior external Government officials recovery basis. Further details provides additional assurance that procurement actions comply are available in the Notes to with policies and standards for high risk, potentially contentious the Financial Statements. procurements. In addition we submit all Procurement Plans and Tender Recommendations for Goods and Services arrangements Capital Works over $5 million for review and endorsement by the State Tender Review Committee. The following is an overview of contracts let in All disclosures in relation to the past year: capital works are included in the Financial Statements. Contracts Let 2010–11 Largest contract awarded (excluding ISAs) $ $173 million Reporting to the Smallest contract awarded $ $20,000 Department of Treasury and Finance Value of contracts over $1 million in regional $940 million areas (including ISAs) As well as providing financial Value of contracts over $1 million in $670 million reports to management and metropolitan areas (including ISAs) the Corporate Executive, there is a requirement to provide Total number of contracts over 44 $1 million awarded daily, monthly, quarterly and annual information to the Department of Treasury and Relationships with suppliers Finance. This also serves as an independent check on the We have a procedure in place for dealing with procurement integrity of financial reporting. grievances which is referenced in all tender documents and a copy is accessible from our website. The procedure has been endorsed by the Western Australian Road Construction and Maintenance Industry Advisory Group and provides for a customer-focused, fair, structured and relationship-based approach to reviewing grievances lodged by contractors. During the year two grievances were received and these have been closed out. The grievances did not highlight any common areas of concern. The low number of grievances, which represented less than 1% of all contracts awarded, is consistent with previous years and indicates that our procurement processes are fair and equitable.

102 Performance Measures

The key performance indicators and financial statements are an integral part of reporting on our performance and achievements throughout the year.

Statement of Certification

Key Performance Indicators

We hereby certify that the key performance indicators are based on proper records, are relevant and appropriate for assisting users to assess Main Roads performance, and fairly represent the performance of Main Roads for the financial year ended 30 June 2011.

Financial Statements

The accompanying financial statements of the Commissioner of Main Roads have been prepared in compliance with the provisions of the Financial Management Act 2006 from proper accounts and records to present fairly the financial transactions for the financial year ending 30 June 2011 and the financial position as at 30 June 2011.

At the date of signing we are not aware of any circumstances which would render any particulars included in the financial statements misleading or inaccurate.

Peter Woronzow Chief Finance Officer 16 August 2011 Main Roads Annual Report 2011

Menno Henneveld Reece Waldock Managing Director of Main Roads Accountable Authority 16 August 2011 16 August 2011

103 104 Main Roads Annual Report 2011

105 Summary of Key Performance Measures

Introduction

Main Roads uses performance measurement to gain insight into, and make judgements about, the effectiveness and efficiency of its programs, processes and people. We measure our progress in meeting strategic goals and outcomes, gather and analyse performance data and then use that data to drive improvements and successfully measure the deployment of actions into outcomes.

Our performance measures Alignment with Government Goals support managerial decision making by providing useful The Western Australian Government has identified the following information regarding how goals that Main Roads will contribute to in delivering its stated efficient and effective our goals. We achieve the delivery of the Government goals through core processes are, if an outcome based Program Management approach. There are improvements are necessary, seven programs that drive outcome based decision making to to identify potential risk areas, achieve agreed business outcomes. The following table shows the determine if our customers and alignment of each Program against the Government’s goals. stakeholders are satisfied and if we are meeting our own and Main Roads Government the Government’s goals. Program Outcome Goal We have a well established Road Safety A safe road environment outcome based performance measurement framework Office of Improved coordination and that seeks to measure the Road Safety community awareness organisation’s success in of road safety Outcome Based terms of delivering on agreed Service Delivery Road Reliable and efficient Government goals and Management movement of people outcomes. Our performance and goods measures are integrated within Road Efficiency the monthly performance evaluation process undertaken State Facilitate economic and State Building – by the Corporate Executive Development regional development Major Projects Leadership team. Maintenance A well maintained Stronger focus on road network the regions Community Improved community Social and Access access and Environmental roadside amenity Responsibility 106 Changes Since the Last Understanding Structure Reporting Period Community Perception Measures The following provides a There has been an amendment summary of Main Roads’ to the methodology adopted Four of the measures are program outcomes and for the calculation of the derived from an annual measures for each indicator Preventative Maintenance Community Perceptions showing the trend over Indicator. Main Roads regularly Survey that seeks to reflect the time as well as providing a undertakes reviews of the satisfaction levels of customers status report as to how the methodologies it adopts to in both metropolitan and rural results for 2010–11 compare ensure that it reflects current areas of the State. These against the targets agreed good practice. In this case an results are used to ensure with Government. It should improved methodology for the that Main Roads’ projects and be noted that due to a calculation of the Preventative customer service initiatives comprehensive review of our Maintenance Indicator was are targeted at the areas of Performance Measures in identified and adopted. Further greatest need. 2007, it has not been possible explanation is included in the to include calculations for commentary supporting the Through the use of an previous years in all cases. results of the measure. external research company, The remainder of this chapter the data was collected by provides commentary on the A review of the methodology way of telephone interview efficiency and effectiveness for reporting of contracts on using a developed structured indicators grouped around budget identified that approved questionnaire. The results are the seven outcome cost variations to the contract based upon a random sample based programs. were not being considered of 1,150 people (250 persons as part of the calculation in the Metropolitan area and process. The inclusion of this 900 persons in rural areas). additional criterion reflects When extending these results decisions made as part of to estimate the percentage of the contract management satisfied Western Australians, process and improves the the margin of error is analysis of Main Roads’ true approximately 2.9% at the performance. Whilst previous 95% confidence level and is year’s results have not been also weighted to reflect the recast, the impact of adopting actual population distribution the new criterion has seen based on ABS statistics. an improvement of between zero and 13% on the current The four measures are year’s results as compared to Community Satisfaction the previous methodology. with Main Roads, road safety, maintenance and An improvement has also provision of cycleway and been made to the Network pedestrian facilities. Main Roads Annual Report 2011 Configuration – Roads methodology to reflect new information available in relation to the curve rating on roads. Whilst this improves the accuracy of the results the changes are not significant.

107 Summary

Key

We are achieving our goals Desired results not achieved – taking action

2011 2011 2008 2009 2010 Var Status Ref Target Actual Road Safety Program % Community satisfaction 93 97 96 90 95 +5 110 of road safety Black spot location indicator 12.09 11.56 11.07 12.3 10.6 +1.7 111

% of contracts n/a 46 59 90 61 -29 111 completed on time % of contracts n/a 91 95 90 88 -2 111 completed on budget Office of Road Safety Program % Effectiveness of road safety n/a n/a 100 80 100 +20 112 awareness campaigns % of ORS Projects n/a n/a 78 90 90 0 112 completed on time % of ORS Projects n/a n/a 82 90 88 -2 112 completed on budget Community Access Program % of the year that 100% n/a 65 95 70 85 +15 120 of the Main Roads’ State road network is available % Community satisfaction with n/a 89 90 85 90 +5 120 cycleways and pedestrian facilities % of contracts n/a 40 86 90 50 -40 120 completed on time % of contracts n/a 100 71 90 100 +10 120 completed on budget

108 2011 2011 2008 2009 2010 Var Status Ref Target Actual Road Efficiency and Road System Management Programs % Community satisfaction 96 97 97 90 97 +7 113

B Double – 27.5 m 97.6 98.7 98.6 98 96 -1 113 % Road network Double RT – 27.5 m 97.3 98.4 98.2 98 96 -2 113 permitted for use by heavy Double RT – 36.5 m n/a 80.0 79.4 79 78 -1 113 vehicles Triple RT – 53.5 m 40.2 43.6 43.7 44 44 0 113

Roads 84.3 87.7 89.1 87 89 +2 114 % Network Strength n/a 94.0 94.7 95 95 0 114 configuration Bridges Width n/a 93.8 94.2 94 94 0 114

% of contracts n/a 36 44 90 57 -33 114 completed on time % of contracts n/a 86 89 90 86 -4 115 completed on budget Average $ cost of network 3,805 3,450 3,828 3,470 3,518 +38 115 management per million vehicle km travelled State Development Program Average return on 4.03 4.09 2.02 2.1 2.7 +0.6 116 construction expenditure % of contracts n/a 60 40 90 71 -19 116 completed on time % of contracts n/a 80 100 90 100 +10 116 completed on budget Road Maintenance Program % Smooth travel exposure 98 97 98 98 98 +1 117

% Community satisfaction n/a 94 93 90 94 +4 117 road maintenance % Preventative 88 88 87 78 85 +7 118 Main Roads Annual Report 2011 maintenance indicator % availability Traffic 99.3 99.1 99.1 99.6 99.1 -0.5 119 of traffic signals, road Road 99.2 99.4 99.4 99.3 97.4 -1.9 119 lighting and emergency Emergency 99.9 99.9 99.9 99.9 99.9 0.0 119 phones phones Average $ cost of network 5,775 6,170 6,811 5,900 6,083 +183 119 maintenance per lane kilometre of road network

109 Road Safety

Outcome

Providing a Safe Road Environment

This program seeks to reduce the State’s road fatality rate to the lowest in Australia by minimising road factors contributing to road trauma and reducing the serious crash injury rate. We demonstrate this through the following measures:

% Community satisfaction of road safety Black spot location indicator % of contracts completed on time % of contracts completed on budget.

Community Satisfaction of Road Safety

This indicator represents how satisfied the community is with Main Roads’ overall performance in the area of road safety. The survey results show that Main Roads’ high performance on road safety remains strong with 94.8% rating it as okay or better exceeding the target of 90%. For consistency all satisfaction measures are progressively being set at 90%. The current exception is satisfaction with cycleways and pedestrian facilities which will be set at 90% in 2011–12. The result is down by 1.5% compared to last year however, Main Roads performance continues to rate strongly across all areas and demographic groups.

actual 2011 target

2010

2009

2008

80 85 90 95 100 %

110 Black Spot Location Indicator

The indicator gives a measure of the number of locations on the road network that meet State Black Spot criteria based on an analysis of crash history. The measure uses a sliding window to determine whether the number of locations eligible for funding is increasing or decreasing, taking into account the amount of travel in the State and the annual Black Spot funding used to treat those locations. The four year trend shows a gradual decline in the number of eligible black spot locations over the past four years with the 2011 result being the lowest recorded since the implementation of the Black Spot program in 2001, coming in below the estimated target.

actual 2011 target

2010

2009

2008

0246810 12 14

Percentage of Contracts Completed on Time Percentage of Contracts Completed on Budget This indicator represents the percentage of contracts that were delivered on time in the Road Safety Program. Whilst the target This indicator represents was established at 90%, 61% of contracts were delivered on time the percentage of contracts which is an improvement on last year’s results. Of the 16 contracts delivered on budget in the that were late only nine exceeded the target date by more

Road Safety Program. Main Roads Annual Report 2011 than 10 days. The following is an explanation of the reasons in The result of 88% is within each case: an acceptable range of the target of 90%. There were Four contracts were delayed due to inclement five contracts that exceeded weather, with two still in progress their target value, in all cases Two contracts were delayed due to an increase this related to variations in the % in the scope of works undertaken scope of works undertaken. Two were delayed due to delays in materials and equipment being delivered to site One contract was late due to significant subterraneous ground conditions and delays in service relocations.

111 Office of Road Safety

Outcome

Improved Coordination and Community Awareness of Road Safety

This program represents the outcomes sought from the Office of Road Safety and their role in supporting the Minister for Road Safety and the Road Safety Council in coordinating and raising community awareness of the road safety effort for Western Australia. We demonstrate this through the following measures:

% Effectiveness of road safety awareness campaigns % Projects completed on time % Projects completed on budget.

* Note: Results from previous years are not available as this suite of measures was introduced for the first time in 2010.

Effectiveness of Road Safety Awareness Campaigns Percentage of Projects Completed on Time This indicator represents the portion of Western Australian drivers who remember seeing major road safety community education This indicator represents campaigns (valued at more than $500,000) conducted by the the percentage of projects Office of Road Safety. The data is collected independently approved by the Road Safety through a professional market research company by conducting Council and the Minister campaign evaluation surveys of 300 drivers (200 from metropolitan for Road Safety that were areas and 100 from rural areas) before and after each major delivered on time by the Office campaign. This year the data is based on three major campaigns of Road Safety, it excludes run throughout 2010–11. The result indicates that all campaigns grant funded projects. The managed by the Office of Road Safety achieved an audience current year’s result shows penetration rate of 50% or greater. There are a number of other that 90% of all projects were campaigns currently running however, their evaluation will be delivered on time slightly undertaken next financial year. exceeding the target of 90%.

Percentage of Contracts Completed on Budget

This indicator represents the percentage of projects approved by the Road Safety Council and the Minister for Road Safety that were delivered on budget by the Office of Road Safety. The current year’s result shows that 88% of all projects were delivered on time slightly under the target of 90%.

Road Safety Campaign – ‘Enjoy The Ride’.

112 Efficiency and Road System Management

Outcome

Reliable and Efficient Movement of People and Goods

The Efficiency Program seeks to improve the efficiency, capacity and utilisation of the existing road network whilst the Road System Management Program seeks to optimise real-time management of the network, provide traveller information, asset management planning and to support service delivery throughout the organisation. Together these programs contribute to achieving the outcome. We demonstrate this through the following measures:

% Community satisfaction Community Satisfaction Road Network % Road network permitted Permitted for use by The Community satisfaction for use by heavy vehicles Heavy Freight Vehicles Indicator represents how B Double – 27.5 m satisfied the community This indicator relates to the Double RT – 27.5 m is with Main Roads’ efficient movement of goods Double RT – 36.5 m overall performance in the within Western Australia and Triple RT – 53.5 m management and operation the percentage of available of the State road network. State roads accessed by % Network The results are drawn from the B-Doubles, Double road configuration Roads Community Perception Survey trains and Triple road trains. % Network configuration where respondents were asked The use of larger vehicles Bridges Strength and Width to rate Main Roads’ overall with greater payloads can performance on a five-point increase the overall efficiency % of contracts scale, 97.1% of respondents of freight transport operations, completed on time rate Main Roads’ performance resulting in lower transport % of contracts completed as okay or better. The overall costs. However, to maintain on budget trend remains positive with road safety and guard against very strong results over the infrastructure damage, Average cost of network past four years exceeding the restrictions are placed on management per million established target. some trucks. Because of the vehicle kilometres travelled. relatively high efficiency of these vehicles, the proportion actual of roads accessible to them 2011 is an important factor in the target overall efficiency of freight

transport in this State. Over the Main Roads Annual Report 2011 2010 past four years the trend has remained relatively consistent 2009 with most minor fluctuations in results attributed to changes in ownership of roads between 2008 State and Local Government 80 85 90 95 100 and very minor variations with % access categorisation.

113 Network Configuration actual – Roads 2011 target This indicator shows the percentage of travel 2010 undertaken on roads meeting specific criteria for seal width, 2009 carriageway width and curve rating. The indicator gives a measure of the ability of 2008

Main Roads to plan for and 80 85 90 95 100 maintain roads to desirable % standards. An improvement has been made to this methodology to reflect new Network Configuration – Bridges information available in relation Similar to the roads measure, bridges are assessed for strength to the curve rating on roads. and width using agreed investigatory criteria. The monitoring The comparative figures for of bridge strength and width needs to ensure a safe and previous years have been efficient road network relating to improved access and transport amended to include this new efficiencies. These measures are indicators for the number information however, the of bridges that meet, or are above, the investigatory criteria, changes are not significant. recorded as a percentage of the total number of bridges on In 2011, 89.1% of travel was main roads and highways. Therefore, the percentage of bridges undertaken on roads meeting meeting these network configuration criteria should continue to the seal width, carriageway rise but only slightly in future years. All bridges that do not meet width and curve rating criteria. the investigatory criteria for strength or width are considered in This is above the target of 87% assessing, scoping and prioritising works, as part of the ten year and represents an increase bridge strategy. The results of this indicator show that 95% of on last year’s result. The four the bridges meet the agreed criteria for strength against a target year figures indicate that of 94%. In relation to width, 94.5% of bridges meet the criteria the network is consistently against a target of 94%. As this measure has only existed for two improving and that Main Roads years data prior to 2009 is not available for comparison. continues to plan and program works to address roads that are below the criteria. Percentage of Contracts Completed on Time

This indicator represents the percentage of contracts that were delivered on time in the Efficiency Program. Whilst the target was established at 90%, 57% of contracts were delivered on time which is an improvement compared to last year’s results. In total nine contracts were late. The following is an explanation for each case:

Two contracts were delayed due to unfavourable ground conditions Two contracts were delayed due to resources being allocated to higher priority works Three were delayed due to inclement weather Two were delayed due to poor contractor performance.

114 Percentage of Contracts Completed on Budget

This indicator represents the percentage of contracts delivered on budget against a target of 90% in the Efficiency Program. The result of 86% of contracts being delivered on budget was only slightly below the agreed target. Three contracts exceeded their target values and in each case it was due to an increase in the scope of works undertaken.

Average Cost of Network Management

This indicator measures the financial efficiency of the Road System Management program in terms of cost per million vehicle kilometres travelled to manage the road system. This measure has been calculated for the current and preceding three financial years in 2010–11 dollars. The overall four year trend is inconsistent as this program includes occasional one-off development costs which can affect the overall results. Whilst actual expenditure has increased over the period 2009–10 to 2010–11, when applying the Gross State Product Index Deflator it actually shows a decrease in present value average cost.

The result was within 1% of Main Roads Annual Report 2011 the target.

Reid Highway / Mirrabooka Avenue roadworks.

115 State Development

Outcome

Facilitating Economic and Regional Development Percentage of Contracts Completed on Time This program expands the road network in accordance with State and Commonwealth transport and land use strategies that will This indicator represents facilitate the economic and regional development of the State. the percentage of contracts We demonstrate this through the following measures: that were delivered on time in the State Development Return on construction expenditure (as an average) Program. Whilst the target was % of contracts completed on time established at 90%, 71% of contracts were delivered on % of contracts completed on budget. time. This result is a marked improvement on what was Return on Construction Expenditure achieved last year. In total four contracts were late, the New road and bridge construction networks add to the capacity following is an explanation for of the road network. Return on construction expenditure is each case: based on Benefit Cost Ratio (BCR) estimates of a set of projects undertaken each year. It indicates the extent to which road and One contract was delayed bridge construction expenditure will deliver economic benefits to due to localised flooding at the community. This indicator represents the expenditure weighted the worksite BCR for the State Development Program for which a BCR has One was delayed due to been calculated. The indicator has decreased from 4.09 in specialist underwater divers 2008–09 to 2.69 in 2010–11 due to the winding down of the having to be engaged New Perth Bunbury Highway Project. Given the large value and and ensuring favourable high BCR for this project, it has had a significant impact on the tide and river flows to overall trend of this indicator; however, the outcome for the current enable the works to be year is slightly above the target. undertaken safely One was delayed due to a change of contractor actual 2011 after the initial contractor target withdrew from the contract

2010 One was delayed due to contractor resourcing issues in relation to white 2009 lining works.

2008 Percentage of Contracts Completed on Budget 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 This indicator represents the percentage of contracts delivered on budget against a target of 90% in the State Development Program. The result achieved was 100% of contracts being delivered on budget. 116 % Road Maintenance

Outcome

Providing a Well Maintained Road Network

This program seeks to maintain the existing road and bridge network by maximising asset life and minimising whole of life costs. We demonstrate this through the following measures:

% Smooth travel exposure % Community satisfaction with road maintenance % Preventative maintenance indicator % Performance of traffic signals, oadr lighting and emergency telephones Average cost of network maintenance per lane kilometre of road network.

Smooth Travel Exposure

This indicator is based on actual the percentage of travel 2011 undertaken on the State road target network meeting specific 2010 roughness criteria. It is therefore an important measure of the effectiveness of road 2009 maintenance expenditure. Of the total travel on sealed 2008 State roads, 97.7% is undertaken on roads that 80 85 90 95 100 meet the roughness standard. % From a length perspective 98.2% of these roads meet Community Satisfaction of Road Maintenance the roughness standard. The established target was met The Community satisfaction of road maintenance indicator and when looking at the overall represents how satisfied the community is with Main Roads in the Main Roads Annual Report 2011 trend the figures indicate maintenance of the State road network. The results are drawn that the network consistently from the Community Perception Survey. Overall community provides smooth travel for satisfaction with road maintenance has remained relatively stable road users. at 93.8% and exceeds the agreed target.

117 Preventative Maintenance Indicator

This indicator provides a the new methodology, as seal classified as ‘Good’ in measure of the proportion a consequence targets for 2011 is actually higher than of sealed state road network those periods have not been 2010 (162 km more) but which has a surfacing age included. The proportion of that the total road length younger than its optimal target the network with a surfacing reported on has increased age. The indicator provides age considered ‘Good’ in some 400 km. This is primarily a measure of proactive 2011 is 85%.The results for attributed to the transfer of maintenance undertaken on the previous 3 years suggest more than 300 km of roads the network on an annual that the proportion of Seals to Main Roads from Local basis. Sections of the network classified as ‘Good’ is steadily Government of which less than with a surfacing age younger decreasing. It should be noted 30% of the seal falls into the than target age are classified however that the length of ‘Good’ category. as ‘Good’. A new methodology for determining target seal

age has been implemented actual in 2011 and is based on a 2011 combination of one or more target of seal type, aggregate size, 2010 traffic, geographic location, temperature and rainfall characteristics. Prior to 2011, 2009 target seal age was based on seal type and aggregate 2008 size only. The statistics for the previous three years 70 75 80 85 90 95 100 have been recalculated using %

118 Availability of Traffic Signals, Road Lighting and Emergency Telephones

This measures the availability their respective targets. every second light on selected of traffic signals, road lighting This year the result for road freeways and highways in and emergency telephones lighting was 2% below the the metropolitan area. On the throughout the road network target, this very slight decline is whole, this measure shows as a percentage of time the attributed to an unusually high that Main Roads is managing assets are fully operational. number of failures following maintaining and operating The availability of traffic signals, the conclusion of a “brown traffic signals, road lighting road lighting and emergency out trial”. This trial, which was and emergency telephones telephones remained stable concluded during 2010, sought throughout the network at near over the last four years to determine the safety, energy optimum levels. with both traffic signals and and environmental outcomes emergency phones meeting arising from switching off

2011 2011 2008 2009 2010 Target Actual Traffic Signals 99.3 99.1 99.1 99.6 99.1 % Road Lighting 99.2 99.4 99.4 99.3 97.4 availability of Emergency phones 99.9 99.9 99.9 99.9 99.9

Average Cost of Network Maintenance per Lane Kilometre of Road Network

This indicator identifies the financial efficiency of road and roadside maintenance works by showing the cost per lane kilometre to maintain acceptable travel conditions on State roads. In order to compare 2010–11 figures with previous years all figures have been adjusted and reported in terms of current year’s dollars which can influence the trend result. Whilst the general trend has seen an increase in the average cost, the decrease of just over 10% from last year to this year reflects the high expenditure arising from rise and fall contract claims in 2009–10 along with unanticipated reinstatement works following natural disasters and additional resealing and resourcing work undertaken. The current years result shows a 3% variation against the target outcome. Main Roads Annual Report 2011

Road Maintenance underway at Malaga Drive.

119 Community Access

Outcome

Improving Community Access and Roadside Amenity

This program seeks to provide infrastructure that will increase personal mobility and community access. We demonstrate this through the following measures:

% of the year that 100% of the Main Roads’ State road network is available % Community satisfaction with cycleways and pedestrian facilities % of contracts completed on time % of contracts completed on budget.

Unplanned Road Community Satisfaction Percentage of Contracts Closure on the State with Cycleways and Completed on Time Road Network Pedestrian Facilities This indicator represents Generally 100% of Main Roads The Community satisfaction the percentage of contracts Road network is available to with cycleways and that were delivered on time all road users; however, there pedestrian facilities indicator in the Community Access are unplanned road closures represents how satisfied the Program against a target due to a number of reasons community iswith Main Roads’ of 90%. This year only two including flooding, cyclones, performance in the contracts were included in major bushfires and major construction, maintenance and the performance measure. road accidents, which may management of cycleways and The result of 50% is below vary in duration. The availability pedestrian facilities. The results last year’s achievement with of the sealed road network is are drawn from the Community the late contract being due to measured as a percentage of Perception Survey. The overall contractor delays. calendar days that the whole result shows that community network is available to the road satisfaction regarding provision Percentage of Contracts user. Closure is determined of cycleway and pedestrian Completed on Budget by measuring the number facilities was 90.3% which is of whole days (24 hours slightly higher than last year’s This indicator represents commencing from the time the results and exceeds the target the percentage of contracts road is closed) that any section of 85%. delivered on budget against of the sealed road network a target of 90%. The result is closed. This year the road achieved was 100% of network was available 85% contracts being delivered of the year which exceeds on budget. the 70% target. With the exception of a bushfire event in Wheatbelt North closures in the Gascoyne, Goldfields– Esperance, Kimberley, Wheatbelt North and Pilbara Regions were due to flooding and rainfall events.

120 Main Roads Annual Report 2011 121 Financial Statements and Notes

Table of Contents page Statement of Comprehensive Income 123 Statement of Financial Position 124 Statement of Changes in Equity 125 Statement of Cash Flows 126 Note 1 Australian Accounting Standards 127 Note 2 Summary of significant accounting policies 127 Note 3 Judgements made by management in applying accounting policies 136 Note 4 Key sources of estimation uncertainty 136 Note 5 Disclosure of changes in accounting policy and estimates 137 Note 6 Employee benefits expense 141 Note 7 Supplies and services 141 Note 8 Depreciation expense of infrastructure assets 141 Note 9 Depreciation and amortisation expense of other assets 142 Note 10 Finance costs 142 Note 11 Grants and subsidies 142 Note 12 Infrastructure assets retired/replaced 142 Note 13 Regulatory fines 142 Note 14 Sale of goods and services 143 Note 15 Commonwealth grants and contributions 143 Note 16 Contributions to roadworks 144 Note 17 Grants from other bodies 144

Note 18 Interest revenue 144 Main Roads Annual Report 2011 Note 19 Other revenue 144 Note 20 Net gain/(loss) on disposal of non-current assets 144 Note 21 Income from State Government 145 Note 22 Restricted cash and cash equivalents 146 Note 23 Receivables 146 Note 24 Amounts receivable for services 147 Note 25 Inventories 147 Note 26 Prepayments 147 Note 27 Non-current assets classified as held for sale 147 121 Note 28 Property, plant and equipment 148 Note 29 Infrastructure 150 Note 30 Intangible assets 151 Note 31 Impairment of assets 151 Note 32 Payables 152 Note 33 Borrowings 152 Note 34 Provisions 152 Note 35 Equity 154 Note 36 Notes to the Statement of Cash Flows 155 Note 37 Resources provided free of charge 155 Note 38 Commitments 156 Note 39 Contingent liabilities and contingent assets 157 Note 40 Events occurring after the end of the reporting period 158 Note 41 Explanatory statements 158 Note 42 Financial instruments 160 Note 43 Remuneration of members of the accountable 163 authority and senior officers Note 44 Remuneration of auditor 164 Note 45 Special purpose accounts 164 Note 46 Supplementary financial information 164 Note 47 Indian Ocean Territories 164 Note 48 Schedule of income and expenses by service 165

Fitzroy Crossing Bridge.

122 Statement of Comprehensive Income for the year ended 30 June 2011

2011 2010 Note $000 $000

Cost of Services Expenses Employee benefits expense 6 65,019 55,614 Supplies and services 7 377,580 343,450 Depreciation expense of infrastructure assets 8 209,647 190,858 Depreciation and amortisation expense of other assets 9 4,704 3,750 Finance costs 10 1,585 1,768 Grants and subsidies 11 140,469 112,101 Infrastructure assets retired/replaced 12 15,013 45,493 Total cost of services 814,017 753,034

Income Revenue Regulatory fines 13 18,682 13,221 Sale of goods and services 14 1,988 4,301 Commonwealth grants and contributions 15 196,666 234,575 Contributions to roadworks 16 12,091 7,156 Grants from other bodies 17 39,419 268,037 Interest revenue 18 3,038 5,032 Other revenue 19 7,526 9,555 Total revenue 279,410 541,877

Gains Gain on disposal of non-current assets 20 1,356 5,651 Total gains 1,356 5,651 Total income other than income from State Government 280,766 547,528

Net Cost of Services 533,251 205,506

Income from State Government 21 Service appropriation 555,190 578,389

Natural disaster funds 13,152 8,926 Main Roads Annual Report 2011 Resources received free of charge 1,079 2,238 Royalties for Regions Fund 393 - Total income from State Government 569,814 589,553 Surplus/(Deficit) for the Period 36,563 384,047

Other Comprehensive Income Changes in asset revaluation surplus 35 2,349,850 (1,182,892) Total other comprehensive income 2,349,850 (1,182,892) Total Comprehensive Income For The Period 2,386,413 (798,845)

The Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

123 Statement of Financial Position as at 30 June 2011

2011 2010 Note $000 $000

Assets Current Assets Cash and cash equivalents 36 221,627 260,359 Restricted cash and cash equivalents 22 3,576 5,227 Receivables 23 22,874 23,955 Amounts receivable for services 24 46,907 42,979 Inventories 25 72 62 Prepayments 26 12,272 2,274 Non-current assets classified as held for sale 27 8,335 2,409 Total Current Assets 315,663 337,265

Non-Current Assets Receivables 23 - 7 Amounts receivable for services 24 1,139,790 1,041,957 Inventories 25 1,501 6,068 Prepayments 26 578 - Property, plant and equipment 28 514,134 472,898 Infrastructure 29 38,834,925 36,390,061 Intangible assets 30 4,802 3,595 Total Non-Current Assets 40,495,730 37,914,586 TOTAL ASSETS 40,811,393 38,251,851

Liabilities Current Liabilities Payables 32 178,787 182,733 Borrowings 33 5,000 5,000 Provisions 34 36,389 32,759 Total Current Liabilities 220,176 220,492

Non-Current Liabilities Payables 32 1,027 919 Borrowings 33 20,766 25,766 Provisions 34 3,135 4,627 Total Non-Current Liabilities 24,928 31,312 Total Liabilities 245,104 251,804 Net Assets 40,566,289 38,000,047

Equity 35 Contributed equity 2,865,852 2,686,023 Reserves 26,724,119 24,374,269 Accumulated surplus/(deficit) 10,976,318 10,939,755 Total Equity 40,566,289 38,000,047

The Statement of Financial Position should be read in conjunction with the accompanying notes.

124 Statement of Changes In Equity for the year ended 30 June 2011

Accumulated Contributed surplus/ equity Reserves (deficit) Total equity Note $000 $000 $000 $000

Balance at 1 July 2009 36 2,340,498 25,557,161 10,555,708 38,453,367 Changes in accounting policy or - - - - correction of prior period errors Restated balance at 1 July 2009 2,340,498 25,557,161 10,555,708 38,453,367

Total comprehensive income - (1,182,892) 384,047 (798,845) for the year Transactions with owners in their capacity as owners: - Capital appropriations 344,688 - - 344,688 - Other contributions by owners 2,029 - - 2,029 - Distribution to owners (1,192) - - (1,192) Total 345,525 - - 345,525 Balance at 30 June 2010 2,686,023 24,374,269 10,939,755 38,000,047

Balance at 1 July 2010 2,686,023 24,374,269 10,939,755 38,000,047 Total comprehensive income - 2,349,850 36,563 2,386,413 for the year Transactions with owners in their capacity as owners: - Capital appropriations 233,175 - - 233,175 - Other contributions by owners 1,815 - - 1,815 - Distribution to owners (55,161) - - (55,161) Total 179,829 - - 179,829 Balance at 30 June 2011 2,865,852 26,724,119 10,976,318 40,566,289

The Statement of Changes in Equity should be read in conjuction with the accompanying notes. Main Roads Annual Report 2011

125 Statement of Cash Flows for the year ended 30 June 2011

2011 2010 Note $000 $000

Cash Flows from State Government Service appropriations 410,451 440,128 Capital appropriations 233,175 346,988 Holding account drawdowns 42,979 42,274 Natural disaster funding 13,152 8,926 Royalties for Regions Fund 393 - Net cash provided by State Government 700,150 838,316

Utilised as follows: Cash Flows from Operating Activities Payments Employee benefits (65,264) (53,501) Supplies and services (372,288) (353,365) Grants and subsidies (136,133) (110,016) GST payments on purchases (80,671) (99,246) Finance costs (1,639) (1,834) Receipts Sale of goods and services 16,385 17,999 Commonwealth grants and contributions 196,666 234,574 Regulatory fines 18,682 13,221 Interest received 3,633 6,037 GST receipts on sales 2,870 3,393 GST receipts from taxation authority 79,000 96,462 Other receipts 6,542 8,024 Rent received 3,205 3,101 Net cash provided by/(used in) operating activities 37 (329,012) (235,151)

Cash Flows from Investing Activities Payments Purchase of non-current physical assets (14,087) (18,173) Purchase of infrastructure (395,487) (590,053) Receipts Proceeds from sale of non-current physical assets 3,053 8,760 Net cash provided by/(used in) investing activities (406,521) (599,466)

Cash Flows from Financing Activities Payments Repayment of borrowings (5,000) (5,296) Net cash provided by/(used in) financing activities (5,000) (5,296)

Net increase/(decrease) in cash and cash equivalents (40,383) (1,597) Cash and cash equivalents at the beginning of the period 265,586 267,183 Cash and Cash Equivalents at the End of the Period 37 225,203 265,586

The Statement of Cash Flows should be read in conjunction with the accompanying notes.

126 Notes to the Financial Statements for the year ended 30 June 2011

1 Australian Accounting Standards (b) Basis of preparation

General The financial statements have been prepared on the accrual The Commissioner of Main Roads’ (Main Roads) financial basis of accounting using the statements for the year ended 30 June 2011 have been prepared historical cost convention, in accordance with Australian Accounting Standards. The term except for land, buildings and ‘Australian Accounting Standards’ includes Standards and infrastructure which have been Interpretations issued by the Australian Accounting Standards measured at fair value. Board (AASB). The accounting policies Main Roads has adopted any applicable new and revised adopted in the preparation of Australian Accounting Standards from their operative dates. the financial statements have been consistently applied Early adoption of standards throughout all periods presented Main Roads cannot early adopt an Australian Accounting Standard unless otherwise stated. unless specifically permitted by TI 1101 Application of Australian Accounting Standards and Other Pronouncements. No Australian The financial statements Accounting Standards that have been issued or amended but not are presented in Australian operative have been early adopted by Main Roads for the annual dollars and all values are reporting period ended 30 June 2011. rounded to the nearest thousand dollars ($’000).

2 Summary of significant accounting policies Note 3 ‘Judgements made by management in applying (a) General statement accounting policies’ discloses judgements that have been The financial statements The Financial Management Act made in the process of constitute general purpose and the Treasurer’s instructions applying the Main Roads’ financial statements that are legislative provisions accounting policies resulting have been prepared in governing the preparation of in the most significant effect accordance with Australian financial statements and take on amounts recognised in the Accounting Standards, the precedence over Australian financial statements. Framework, Statements of Accounting Standards, the Accounting Concepts and other Framework, Statements of Note 4 ‘Key sources of authoritative pronouncements Accounting Concepts and other estimation uncertainty’ of the Australian Accounting authoritative pronouncements discloses key assumptions Standards Board as applied of the Australian Accounting made concerning the future, by the Treasurer’s instructions. Standards Board. Main Roads Annual Report 2011 and other key sources of Several of these are modified estimation uncertainty at the by the Treasurer’s instructions Where modification is required end of the reporting period, to vary application, disclosure, and has had a material or that have a significant risk of format and wording. significant financial effect upon causing a material adjustment the reported results, details to the carrying amounts of of that modification and the assets and liabilities within the resulting financial effect are next financial year. disclosed in the notes to the financial statements.

127 Notes to the Financial Statements for the year ended 30 June 2011

(c) Reporting entity Sale of goods a fair value can be reliably determined and the services The reporting entity comprises Revenue is recognised from would be purchased if the Commissioner of the sale of goods and disposal not donated. Main Roads. of other assets when the significant risks and rewards Gains (d) Contributed equity of ownership transfer to the purchaser and can be Realised and unrealised AASB Interpretation 1038 measured reliably. gains are usually recognised Contributions by Owners Made on a net basis. These include to Wholly-Owned Public Sector Provision of services gains arising on the disposal Entities requires transfers in the Revenue is recognised on of non-current assets and nature of equity contributions, delivery of the service to some revaluations of other than as a result of a the client or by reference non-current assets. restructure of administrative to the stage of completion arrangements, to be of the transaction. (f) Borrowing costs designated by the Government (the owner) as contributions Borrowing costs for qualifying Interest by owners (at the time of, or assets are capitalised net of prior to transfer) before such Revenue is recognised as the any investment income earned transfers can be recognised interest accrues. on the unexpended portion as equity contributions. Capital of the borrowings. Other Service appropriations appropriations have been borrowing costs are expensed designated as contributions by Service Appropriations are when incurred. owners by TI 955 Contributions recognised as revenues at fair (g) Property, plant and by Owners made to Wholly value in the period in which equipment and Owned Public Sector Entities Main Roads gains control infrastructure and have been credited directly of the appropriated funds. to Contributed equity. Main Roads gains control of Capitalisation/expensing appropriated funds at the time of assets those funds are deposited to The transfer of net assets to/ Items of property, plant and the bank account or credited from other agencies, other than equipment and infrastructure to the ‘Amounts receivable for as a result of a restructure of costing $5,000 or more are services’ (holding account) held administrative arrangements, recognised as assets and at Treasury. are designated as contributions the cost of utilising assets is by owners where the transfers expensed (depreciated) over Grants, donations, gifts are non-discretionary and their useful lives. Items of and other non-reciprocal non reciprocal. property, plant and equipment contributions and infrastructure costing less (e) Income Revenue is recognised at than $5,000 are immediately Revenue recognition fair value when Main Roads expensed direct to the obtains control over the assets Revenue is recognised and Statement of Comprehensive comprising the contributions, measured at the fair value Income (other than where usually when cash is received. of consideration received they form part of a group of similar items which are or receivable. The following Other non-reciprocal significant in total). specific recognition criteria contributions that are not must also be met before contributions by owners are revenue is recognised for recognised at their fair value. the major business activities Contributions of services as follows: are only recognised when

128 Initial recognition In the absence of market-based intervening years by reference and measurement evidence, fair value of land to a cost index (ABS Road Property, plant and equipment and buildings is determined and Bridge Construction and infrastructure are initially on the basis of existing use. Cost Index) to ensure asset recognised at cost. This normally applies where values do not materially differ buildings are specialised or from fair value. The value of For items of property, plant and where land use is restricted. roads and principal shared equipment and infrastructure Fair value for existing use paths (earthworks, drainage, acquired at no cost or for assets is determined by pavements and seals), nominal cost, the cost is the fair reference to the cost of bridges and road furniture value at the date of acquisition. replacing the remaining future at 30 June 2011 is based economic benefits embodied on the current depreciated Subsequent measurement in the asset, ie. the depreciated replacement cost determined Subsequent to initial recognition replacement cost. Where at 30 June 2011 calculated as an asset, the revaluation the fair value of buildings is using current construction model is used for the determined on the depreciated unit rates determined by a measurement of land, buildings replacement cost basis, the professional quantity surveying and infrastructure and historical gross carrying amount and the firm and multiplying these cost for all other property, plant accumulated depreciation are by the units that form the and equipment. Land, buildings restated proportionately. infrastructure asset. A cost and infrastructure are carried index (ABS Road and Bridge at fair value less accumulated Land and buildings are Construction Cost Index) depreciation (buildings and independently valued annually has been applied to principal infrastructure only) and by the Western Australian Land shared paths and certain road accumulated impairment losses. Information Authority (Valuation furniture assets to ensure asset All other items of property, plant Services) and recognised values do not materially differ and equipment are stated at annually to ensure that the from fair value. historical cost less accumulated carrying amount does not differ depreciation and accumulated materially from the asset’s When infrastructure is impairment losses. fair value at the end of the revalued, the accumulated reporting period. depreciation is restated Where market-based evidence proportionately with the is available, the fair value of land Fair value of infrastructure, change in the gross carrying and buildings is determined other than land under roads, amount of the asset so that on the basis of current market has been determined by the carrying amount of the buying values determined by reference to the current asset after revaluation equals reference to recent market depreciated replacement cost its revalued amount. Main Roads Annual Report 2011 transactions. When buildings (existing use basis) as the are revalued by reference to assets are specialised and Work in Progress is recent market transactions, no market evidence of value recognised at cost. the accumulated depreciation is available. The replacement is eliminated against the gross cost is determined by Main carrying amount of the asset Roads every three years by and the net amount restated to reference to the cost of a new the revalued amount. asset and adjusted in the

129 Notes to the Financial Statements for the year ended 30 June 2011

The fair value of land under The most significant Derecognition roads (i.e. land within road assumptions in estimating fair Upon disposal or derecognition reserves) is based on the value are made in assessing of an item of property, market value of the land whether to apply the existing plant and equipment and adjoining the road reserve. use basis to assets and in infrastructure, any revaluation The land values are provided determining estimated useful surplus relating to that asset is by geographic location on an life. Professional judgement by retained in the asset revaluation annual basis by the Western the valuer is required where surplus. Australian Land Information the evidence does not provide Authority (Valuation Services) a clear distinction between Asset revaluation as follows: market type assets and surplus existing use assets. The asset revaluation surplus is Metropolitan area – median used to record increments and value for single residential Land acquired for road decrements on the revaluation land for each Local reserves is initially reported as of non-current assets as Government Area. Land ‘land acquired for roadworks’ described in note 28 ‘Property, parcels up to 899 square under ‘property, plant and plant and equipment’. metres are assumed to have equipment’ until the land is a single residential zoning. required for road construction. Depreciation It is then transferred to South West Region – All non-current assets having ‘land within road reserves’ nominal unimproved a limited useful life are and reported as part of valuation rates covering systematically depreciated infrastructure assets. the south west of the over their estimated useful State from Geraldton Land determined to be surplus lives in a manner that reflects to Esperance. to the requirements of the road the consumption of their future Balance of State – nominal reserve is available for disposal economic benefits. unimproved valuation rates and is transferred to ‘surplus Road earthworks do not based on leasehold rates land’ or ‘non current assets generally have a finite life. for Crown land. held for sale’ depending on the Physical deterioration and timetable for disposal. commercial obsolescence are Wherever possible, the not significant factors. The properties are rented or leased small percentage of earthworks until required for roadworks. that are depreciated have been Income from these properties assessed to be substandard in is recognised as revenue in the terms of horizontal alignment financial year it is earned. and therefore impacted by technical obsolescence. An engineering review is completed annually to identify these segments of the network.

130 Depreciation is calculated using the straight line method, using rates which are reviewed annually. Estimated useful lives for each class of depreciable asset are:

Road Infrastructure Earthworks Up to 173 years Pavement, drainage and seals Metropolitan asphalt roads 40 years Sealed rural roads 50 years Gravel roads 12 years Bridges 60 to 100 years Road furniture 25 to 40 years Property, Plant and Equipment Buildings 10 to 40 years Plant and vehicles 5 to 10 years Equipment and furniture 5 to 13 years Computer hardware and software (a) 3 to 13 years

(a) Software that is integral to the operation of related hardware.

Land is not depreciated.

(h) Intangible assets

Capitalisation/expensing All acquired and internally Amortisation for intangible of assets developed intangible assets assets with finite useful lives is Acquisitions of intangible are initially recognised at cost. calculated for the period of the assets costing $5,000 For assets acquired at no cost expected benefit (estimated or more and internally or for nominal cost, the cost useful life which is reviewed generated intangible assets is their fair value at the date annually) on the straight line costing $50,000 or more of acquisition. basis. All intangible assets are capitalised. The cost controlled by Main Roads have of utilising the assets is The cost model is applied for a finite useful life and zero subsequent measurement expensed (amortised) over residual value. Main Roads Annual Report 2011 their useful life. Costs incurred requiring the asset to be below these thresholds carried at cost less any are immediately expensed accumulated amortisation directly to the Statement of and accumulated Comprehensive Income. impairment losses.

131 Notes to the Financial Statements for the year ended 30 June 2011

The expected useful lives As Main Roads is a not-for- The recoverable amount of for each class of intangible profit entity, unless an asset assets identified as surplus asset are: has been identified as a surplus assets is the higher of fair asset, the recoverable amount value less costs to sell and the Computer 3 to 10 is the higher of an asset’s fair present value of future cash software (a) years value less costs to sell and flows expected to be derived and licences depreciated replacement cost. from the asset. Surplus assets carried at fair value have no (a) Software that is not integral to the The risk of impairment risk of material impairment operation of any related hardware. is generally limited to where fair value is determined circumstances where an by reference to market-based Computer software asset’s depreciation is evidence. Where fair value and licences materially understated, is determined by reference where the replacement cost to depreciated replacement Software that is an integral is falling or where there is a cost, surplus assets are part of the related hardware significant change in useful at risk of impairment and is treated as property, plant life. The exception is road the recoverable amount is and equipment. Software earthworks when the alignment measured. Surplus assets at that is not an integral part of a section of road may be cost are tested for indications of the related hardware is assessed to be deficient and of impairment at the end of treated as an intangible asset. the useful life of the asset is each reporting period. Software costing less than revised from infinite to finite. $5,000 is expensed in the year Each relevant class of assets is (j) Non-current assets of acquisition. reviewed annually to verify that (or disposal groups) the accumulated depreciation/ classified as held Drainage easements amortisation reflects the level for sale Easements secured over of consumption or expiration Non-current assets (or properties for the purpose of asset’s future economic disposal groups) held for sale of road drainage have an benefits and to evaluate any are recognised at the lower indefinite useful life. impairment risk from falling of carrying amount or fair replacement costs. (i) Impairment of assets value less costs to sell, and are disclosed separately from Intangible assets with an Property, plant and equipment, other assets in the Statement indefinite useful life and infrastructure and intangible of Financial Position. Assets intangible assets not yet assets are tested for any classified as held for sale are available for use are tested for indication of impairment at the not depreciated or amortised. end of each reporting period. impairment at the end of each reporting period irrespective of Where there is an indication of (k) Leases impairment, the recoverable whether there is any indication Operating leases are expensed amount is estimated. Where of impairment. on a straight line basis over the the recoverable amount is less lease term as this represents than the carrying amount, the the pattern of benefits derived asset is considered impaired from the leased properties. and is written down to the recoverable amount and an impairment loss is recognised.

132 (l) Financial instruments (m) Cash and cash (p) Inventories equivalents In addition to cash, Main Inventories held for distribution Roads has two categories of For the purpose of the (for roadworks) are measured financial instrument: Statement of Cash Flows, at the lower of cost and current cash and cash equivalent replacement cost. Costs Loans and receivables; and (and restricted cash and cash are assigned on a standard, Financial liabilities measured equivalent) assets comprise average or last known at amortised cost. cash on hand and short-term cost basis. deposits with original maturities Financial instruments have of three months or less that are Inventories held for resale are been disaggregated into the readily convertible to a known valued at the lower of cost and following classes: amount of cash and which are net realisable value. See note subject to insignificant risk of 25 ‘Inventories’. Financial Assets changes in value. Cash and cash (q) Receivables equivalents (n) Accrued salaries Receivables are recognised at Restricted cash and Accrued salaries (see note original invoice amount less an cash equivalents 32 ‘Payables’) represent the allowance for any uncollectible Receivables amount due to staff but unpaid amounts (i.e. impairment). The Amounts receivable for at the end of the financial collectability of receivables is services year. Accrued salaries are reviewed on an ongoing basis settled within a fortnight of the and any receivables identified Financial Liabilities financial year end. Main Roads as uncollectible are written-off Payables considers the carrying amount against the allowance account. WATC Loan of accrued salaries to be The allowance for uncollectible amounts (doubtful debts) is Initial recognition and equivalent to its net fair value. raised when there is objective measurement of financial (o) Amounts receivable evidence that Main Roads instruments is at fair value for services will not be able to collect the which normally equates to (holding account) debts. The carrying amount is the transaction cost or the equivalent to fair value as it face value. Subsequent Main Roads receives income is due for settlement within measurement is at amortised from the State Government 30 days. cost using the effective partly in cash and partly as interest method. an asset (holding account (r) Payables receivable). The accrued The fair value of short-term amount appropriated is Payables are recognised when Main Roads Annual Report 2011 receivables and payables is accessible on the emergence Main Roads becomes obliged the transaction cost or the of the cash funding to make future payments as a face value because there is requirement to cover leave result of a purchase of assets no interest rate applicable and entitlements and asset or services at fair value, as they subsequent measurement is replacement. are generally settled within not required as the effect of 30 days. discounting is not material.

133 Notes to the Financial Statements for the year ended 30 June 2011

(s) Borrowings When assessing expected When assessing expected future payments consideration future payments consideration All loans payable are initially is given to expected is given to expected recognised at cost, being the future wage and salary future wage and salary fair value of the net proceeds levels including non-salary levels including non-salary received. Subsequent components such as employer components such as measurement is at amortised superannuation contributions, employer superannuation cost using the effective interest as well as the experience contributions, as well as rate method. of employee departures the experience of employee (t) Provisions and periods of service. The departures and periods of expected future payments are service. The expected future Provisions are liabilities of discounted using market yields payments are discounted using uncertain timing or amount and at the end of the reporting market yields at the end of the are recognised where there is period on national government reporting period on national a present legal or constructive bonds with terms to maturity government bonds with obligation as a result of a past that match, as closely as terms to maturity that match, event and when the outflow possible, the estimated future as closely as possible, the of resources embodying cash outflows. estimated future cash outflows. economic benefits is probable and a reliable estimate can The provision for annual leave Unconditional long service be made of the amount of is classified as a current liability leave provisions are classified the obligation. Provisions are as Main Roads does not have as current liabilities as reviewed at the end of each an unconditional right to the Main Roads does not have reporting period. defer settlement of the liability an unconditional right to defer for at least 12 months after the settlement of the liability for Provisions reporting period. at least 12 months after the – employee benefits reporting period. Conditional All annual leave and long Long service leave long service leave provisions service leave provisions are The liability for long service are classified as non-current in respect of employees’ leave expected to be liabilities because Main Roads services up to the end of the settled within 12 months has an unconditional right to reporting period. after the reporting period is defer the settlement of the recognised and measured at liability until the employee has Annual leave the undiscounted amounts completed the requisite years The liability for annual leave expected to be paid when the of service. expected to be settled within liability is settled. 12 months after the reporting period is recognised and Long service leave not measured at the undiscounted expected to be settled within amounts expected to be paid 12 months after the reporting when the liability is settled. period is recognised and measured at the present value Annual leave not expected to of amounts expected to be be settled within 12 months paid when the liabilities are after the reporting period is settled using the remuneration recognised and measured at rate expected to apply at the the present value of amounts time of settlement. expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement. 134 Sick leave Purchased leave Main Roads has no liabilities Liabilities for sick leave are The provision for purchased under the Pension Scheme recognised when it is probable leave relates to Public Service or the GSS. The liabilities that sick leave paid in the employees who have entered for the unfunded Pension future will be greater than the into an agreement to self- Scheme and the unfunded entitlement that will accrue in fund up to an additional ten GSS transfer benefits the future. weeks leave per calendar year. attributable to members who The provision recognises the transferred from the Pension Past history indicates that value of salary set aside for Scheme, are assumed by on average, sick leave taken employees and is measured at the Treasurer. All other GSS each reporting period is less the nominal amounts expected obligations are funded by than the entitlement accrued. to be paid when the liabilities concurrent contributions made This is expected to continue are settled. This liability is by Main Roads to the GESB. in future periods. Accordingly, measured on the same basis The concurrently funded it is unlikely that existing as annual leave. part of the GSS is a defined accumulated entitlements contribution scheme as these will be used by employees Superannuation contributions extinguish and no liability for unused The Government Employees all liabilities in respect of sick leave entitlements is Superannuation Board (GESB) the concurrently funded recognised. As sick leave is administers public sector GSS obligations. non-vesting, an expense is superannuation arrangements Employees commencing recognised in the Statement of in Western Australia in employment prior to 16 April Comprehensive Income for this accordance with legislative 2007 who were not members leave as it is taken. requirements. of either the Pension or the Deferred leave Eligible employees GSS became non-contributory The provision for deferred contribute to the Pension members of the West State leave relates to Public Service Scheme, a defined benefit Superannuation Scheme employees who have entered pension scheme closed (WSS). Employees commencing into an agreement to self-fund to new members since employment on or after 16 April an additional twelve months 1987, or the Gold State 2007 became members of leave in the fifth year of the Superannuation Scheme the GESB Super Scheme agreement. The provision (GSS), a defined benefit lump (GESBS). Both of these recognises the value of salary sum scheme closed to new schemes are accumulation set aside for employees to members since 1995. schemes. Main Roads makes be used in the fifth year. This concurrent contributions to The GSS is a defined benefit GESB on behalf of employees liability is measured on the Main Roads Annual Report 2011 same basis as annual leave. scheme for the purposes in compliance with the Deferred leave is reported as of employees and whole- Commonwealth Government’s a non-current provision until of-government reporting. Superannuation Guarantee the fifth year. However, it is a defined (Administration) Act 1992. contribution plan for agency These contributions extinguish purposes because the the liability for superannuation concurrent contributions charges in respect of the WSS (defined contributions) made and GESBS. by Main Roads to GESB extinguishes the agency’s The GESB makes all benefit obligations to the related payments in respect of the superannuation liability. Pension Scheme and GSS, and is recouped from the Treasurer for the employer’s share. 135 Notes to the Financial Statements for the year ended 30 June 2011

Provisions – other (y) Property liabilities and commitments Employment on-costs A liability has been recognised in respect of Employment on-costs, including workers’ properties for which a Notice of Resumption compensation insurance, are not employee under the Land Administration Act 1997 has benefits and are recognised separately as been issued and formal possession has taken liabilities and expenses when the employment to place but where settlement has not been which they relate has occurred. Employment on- achieved at the end of the reporting period. costs are included as part of ‘Other expenses’ Liabilities in such circumstances have been and are not included as part of Main Roads’ based on valuations and include costs of ‘Employee benefits expense’. The related liability acquisition. This liability is included in Payables. is included in ‘Employment on-costs provision’. See note 32 ‘Payables’.

(u) Superannuation expense 3 Judgements made by The superannuation expense in the Statement management in applying of Comprehensive Income comprises employer contributions paid to the GSS (concurrent accounting policies contributions), WSS, and the GESBS. There were no material judgements made by management in applying accounting policies (v) Resources received free of charge for the 2010-11 financial year, other than or for nominal cost those disclosed at note 2(y) ‘Property liabilities Resources received free of charge or for and commitments’. nominal cost that can be reliably measured are recognised as income at fair value. Where the resource received represents a service 4 Key sources of estimation that Main Roads would otherwise pay for, a uncertainty corresponding expense is recognised. Receipts Key estimates and assumptions concerning the of assets are recognised in the Statement of future are based on historical experience and Financial Position. various other factors that have a significant risk Assets or services received from other State of causing a material adjustment to the carrying Government agencies are separately disclosed amount of assets and liabilities within the next under Income from State Government in the financial year. Statement of Comprehensive Income. Long Service Leave (w) Comparative figures The liability for long service leave is measured Comparative figures are, where appropriate, at the present value of amounts expected to reclassified to be comparable with the figures be paid when the liabilities are settled. The assessment of future payments is based on presented in the current financial year. estimated retention rates and remuneration levels (x) Insurance and discounted using current market yields on national government bonds with maturity dates Main Roads regularly reviews its insurance that match the estimated future cash outflows. arrangements including areas where self-insurance is deemed to be economically justified. Self insurance covers the risks of natural disasters causing damage to infrastructure assets. Currently, these self-insurance areas are:

roads, bridges and road furniture

136 Depreciated replacement cost of infrastructure assets Infrastructure assets, other than land within road reserves, are measured at current depreciated replacement cost by reference to the cost of new assets. The replacement cost is reviewed every three years on the basis of actual contract construction rates and adjusted in the intervening years by applying the Road and Bridge Construction Index published by the Australian Bureau of Statistics.

5 Disclosure of changes in accounting policy and estimates

Initial application of an Australian Accounting Standard Main Roads has applied the following Australian Accounting Standards effective for annual reporting periods beginning on or after 1 July 2010 that impacted on Main Roads.

2009-5 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project [AASB 5, 8, 101, 107, 117, 118, 136 & 139]

Under amendments to AASB 117, the classification of land elements of all existing leases has been reassessed to determine whether they are in the nature of operating or finance leases. As leases of land & buildings recognised in the financial statements have not been found to significantly expose Main Roads to the risks/rewards attributable to control of land, no changes to accounting estimates have been included in the Financial Statements and Notes to the Financial Statements.

Under amendments to AASB 107, only expenditures that result in a recognised asset are eligible for classification as investing activities in the Statement of Cash Flows. All investing cashflows recognised in Main Roads’ Statement of Cash Flows relate to increases in recognised assets.

Future impact of Australian Accounting Standards not yet operative Main Roads cannot early adopt an Australian Accounting Standard unless specifically permitted by TI 1101 Application of Australian Accounting Standards and Other Pronouncements. Consequently, Main Roads has not applied early any of the following Australian Accounting Standards that have been issued that may impact Main Roads. Where applicable, Main Roads plans to apply these Australian Accounting Standards from their application date. Main Roads Annual Report 2011

137 Notes to the Financial Statements for the year ended 30 June 2011

Operative for reporting periods beginning on/after AASB Amendments to Australian Accounting Standards arising from AASB 1 Jan 2013 2009-11 9 [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 & 1038 and Interpretations 10 & 12].

The amendment to AASB 7 Financial Instruments: Disclosures requires modification to the disclosure of categories of financial assets. Main Roads does not expect any financial impact when the Standard is first applied. The disclosure of categories of financial assets in the notes will change. AASB Amendments to Australian Accounting Standards [AASBs 5, 8, 108, 1 Jan 2011 2009-12 110, 112, 119, 133, 137, 139, 1023 & 1031 and Interpretations 2, 4, 16, 1039 & 1052]

This Standard introduces a number of terminology changes. There is no financial impact resulting from the application of this revised Standard. AASB 1053 Application of Tiers of Australian Accounting Standards 1 Jul 2013

This Standard establishes a differential financial reporting framework consisting of two tiers of reporting requirements for preparing general purpose financial statements.

The Standard does not have any financial impact on Main Roads. However it may affect disclosures in the financial statements of Main Roads if the reduced disclosure requirements apply. DTF has not yet determined the application or the potential impact of the new Standard for agencies. AASB Amendments to Australian Accounting Standards arising from 1 Jul 2013 2010-2 Reduced Disclosure Requirements

This Standard makes amendments to many Australian Accounting Standards, including Interpretations, to introduce reduced disclosure requirements into these pronouncements for application by certain types of entities.

The Standard is not expected to have any financial impact on Main Roads. However this Standard may reduce some note disclosures in the financial statements of Main Roads. DTF has not yet determined the application or the potential impact of the amendments to these Standards for agencies.

138 Operative for reporting periods beginning on/after AASB Amendments to Australian Accounting Standards arising from 1 Jul 2011 2011-2 the Trans-Tasman Convergence Project – Reduced Disclosure Requirements [AASB 101 & 1054]

This Amending Standard removes disclosure requirements from other Standards and incorporates them in a single Standard to achieve convergence between Australian and New Zealand Accounting Standards for reduced disclosure reporting. DTF has not yet determined the application or the potential impact of the amendments to these Standards for agencies. AASB Amendments to Australian Accounting Standards [AASB 1, 3, 4, 5, 1 Jan 2011 2010-5 101, 107, 112, 118, 119, 121, 132, 133, 134, 137, 139, 140, 1023 & 1038 and Interpretations 112, 115, 127, 132 & 1042] (October 2010)

This Standard introduces a number of terminology changes as well as minor presentation changes to the Notes to the Financial Statements. There is no financial impact resulting from the application of this revised Standard. AASB Amendments to Australian Accounting Standards – Disclosures on 1 Jul 2011 2010-6 Transfers of Financial Assets [AASB 1 & AASB 7]

This Standard makes amendments to Australian Accounting Standards, introducing additional presentation and disclosure requirements for Financial Assets.

The Standard is not expected to have any financial impact on Main Roads. DTF has not yet determined the application or the potential impact of the amendments to these Standards for agencies. AASB 9 Financial Instruments 1 Jan 2013

This Standard supersedes AASB 139 Financial Instruments: Recognition and Measurement, introducing a number of changes to accounting treatments. Main Roads Annual Report 2011

The Standard was reissued on 6 Dec 2010 and Main Roads is currently determining the impact of the Standard. DTF has not yet determined the application or the potential impact of the Standard for agencies.

139 Notes to the Financial Statements for the year ended 30 June 2011

Operative for reporting periods beginning on/after AASB Amendments to Australian Accounting Standards arising from AASB 1 Jan 2013 2010-7 9 (December 2010) [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Interpretations 2, 5, 10, 12, 19 & 127]

This Amending Standard makes consequential adjustments to other Standards as a result of issuing AASB 9 Financial Instruments in December 2010. DTF has not yet determined the application or the potential impact of the Standard for agencies. AASB 1054 Australian Additional Disclosures 1 Jul 2011

This Standard, in conjunction with AASB 2011-1 Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project, removes disclosure requirements from other Standards and incorporates them in a single Standard to achieve convergence between Australian and New Zealand Accounting Standards. AASB Amendments to Australian Accounting Standards arising from the 1 Jul 2011 2011-1 Trans-Tasman Convergence Project [AASB 1, 5, 101, 107, 108, 121, 128, 132 & 134 and Interpretations 2, 112 & 113]

This Amending Standard, in conjunction with AASB 1054 Australian Additional Disclosures, removes disclosure requirements from other Standards and incorporates them in a single Standard to achieve convergence between Australian and New Zealand Accounting Standards.

140 2011 2010 $000 $000 6 Employee benefits expense

Wages and salaries 51,294 44,572 Annual leave 5,159 4,255 Long service leave 2,462 2,097 58,915 50,924 Superannuation – defined contribution plans(a) 6,104 4,690 65,019 55,614

(a) Defined contribution plans include estW State, Gold State and GESB Super Scheme (contribution paid).

7 Supplies and services

Contractors and consultants 316,697 308,696 Materials 3,373 1,440 Plant hire charges 14,452 5,064 Fringe benefits tax 1,128 1,099 Postage, stationery and reprographics 1,361 1,287 Telecommunications 3,278 3,359 Building maintenance and equipment 8,497 2,665 Electricity, gas and water 5,965 5,634 Contributions 312 173 Legal costs 348 593 Advertising 6,605 4,972 Rates and taxes 333 330 Insurance 2,399 2,329 Other 12,833 5,809 377,581 343,450

8 Depreciation expense of infrastructure assets

Roads – earthworks 533 623 Roads – earthworks (adjustment) (1,266) 1,266 Roads – pavements, drainage and seal 157,740 141,914 Bridges 40,835 8,018 Road furniture 11,805 9,037 209,647 190,858 Main Roads Annual Report 2011

141 Notes to the Financial Statements for the year ended 30 June 2011

2011 2010 $000 $000 9 Depreciation and amortisation expense of other assets

Depreciation Plant, equipment and vehicles 2,762 2,375 Buildings 5,759 4,049 Total depreciation 8,521 6,424

Amortisation Intangible assets 280 285 Total amortisation 280 285 Total depreciation and amortisation 8,801 6,709 Less: depreciation capitalised to infrastructure (4,097) (2,959) 4,704 3,750

10 Finance costs

Interest expense 1,585 1,768

11 Grants and subsidies

Grants and subsidies to local government and other bodies 137,478 111,935 Grants of non-current assets to other bodies 2,991 166 140,469 112,101

12 Infrastructure assets retired/replaced

Earthworks and pavements 13,096 33,395 Bridges 639 252 Road furniture 826 - Work in progress 452 11,846 15,013 45,493

Infrastructure assets replaced or retired during the year have been expensed at their carrying amount.

13 Regulatory fines

Regulatory fines 18,682 13,221

This revenue represents one-third of all moneys from photographic based vehicle infringement notices collected via Department of Transport and Department of the Attorney General. The collections are credited to the Road Trauma Trust Fund and administered by the Office of Road Safety in accordance with the Road Safety Council Act 2002.

142 2011 2010 $000 $000 14 Sale of goods and services

Sale of goods and services 1,988 4,301

This amount represents works undertaken for other public and private bodies and includes the recovery of expenditure from the Commonwealth Department of Infrastructure, Transport, Local Government and Regional Development under service delivery arrangements with the Shires of Christmas Island and Cocos (Keeling) Island. The amounts expended or set aside for expenditure during 2010–11 are summarised at note 47 ‘Indian Ocean Territories’.

15 Commonwealth grants and contributions

Nation Building Program 180,247 232,160 Jobs Fund – Infrastructure Employment Projects 13,500 - Interstate Road Transport Act 1985 2,919 2,415 196,666 234,575

Nation Building Program Jobs Fund – Infrastructure Interstate Road Employment Projects Transport Act 1985 Grants are received from the Commonwealth Government Grants are received from the A charge is levied under the through the Nation Building Commonwealth Government Act on interstate commercial Program (National Land through the Jobs Fund. This vehicles that are exempt Transport) Act 2009. The is an Australian Government from State charges and the objective of this Act is to assist initiative to support and create revenue raised is distributed in national and regional economic jobs and skill development accordance with the damage and social development by through projects that build attributed to interstate vehicles improving the performance of infrastructure and social in each State. land transport infrastructure. capital in local communities. Programs funded under this This funding is used to deliver arrangement include the Heavy the Fitzgerald River National Vehicle Safety and Productivity, Park Road Upgrade and Walk Boom Gates for Rail Crossings Trail Project. and the Black Spot Program along with funding for the Local Road and National Main Roads Annual Report 2011 Road Projects.

At 30 June 2011, $35.982 million of the Nation Building Program (National Land Transport) Act 2009 grants recognised as revenue remained unspent on approved projects (at 30 June 2010 the amount was $32.858 million). Refer to note 2(e) ‘Income’.

143 Notes to the Financial Statements for the year ended 30 June 2011

2011 2010 $000 $000 16 Contributions to roadworks

Contributions to roadworks 12,091 7,156

This revenue represents contributions by both public and private bodies towards the cost of works performed on highways and main roads. See note 2(e) ‘Income’.

17 Grants from other bodies

Grants from local government authorities and other bodies Transferred infrastructure assets at fair value 24,148 265,976 Local Government contribution to traffic signal construction - 667 Developers contribution to roadworks 15,271 1,394 39,419 268,037

Transferred infrastructure assets at fair value are transfers from Local Government and other bodies to State Government based on formal proclamation. The following roads were transferred during 2010–11: Indian Ocean Drive (Lancelin-Cervantes).

The developers contribution to roadworks relate to construction costs met by private developers on roads owned by Main Roads. Roadworks include Mingenew-Morawa Road, Marble Bar Road and Great Northern Highway (Extension Hill). 18 Interest revenue

AusLink Accelerated Upgrade Package interest revenue 2,704 4,786 Road Trauma Trust Fund interest revenue 244 182 Other interest revenue 90 64 3,038 5,032 19 Other revenue

Rental income 3,217 3,100 Return of previous year grants 506 2,304 Other contributions (a) 2,670 3,081 Other 1,133 1,070 7,526 9,555

(a) Contributions to the Office of Road Safety by other bodies for road related safety projects

20 Net gain/(loss) on disposal of non-current assets

Proceeds from disposal of non-current assets Land acquired for roadworks 5,058 10,370 Land and buildings 335 400 Plant, equipment and vehicles - 26 5,393 10,796

Costs of disposal of non-current assets Land acquired for roadworks 3,571 4,880 Land and buildings 466 249 Plant, equipment and vehicles - 16 4,037 5,145 Net gain/(loss) 1,356 5,651

144 2011 2010 $000 $000 21 Income from State Government

Service appropriation Motor vehicle licence fees 403,425 402,790 Untied funds 145,714 170,319 Motor vehicle permit fees 5,699 4,942 Salaries and Allowances Act 352 338 555,190 578,389

Other funds received from State Government Natural disaster funds 13,152 8,926

Resources received free of charge Determined on the basis of the following estimates provided by agencies: Land Information Authority (Landgate) 73 2,232 Department of Treasury and Finance 6 6 Department of Education 1 - Department of the Attorney General (State Solicitor’s Office) 997 - Department of Water 2 - 1,079 2,238

Royalties for Regions Fund Regional Community Services Account 393 - 569,814 589,553

Service appropriations Service appropriations fund the net cost of services delivered. Appropriation revenue comprises a cash component and a receivable (asset). The receivable (holding account) comprises the depreciation expense for the year and any agreed increase in leave liability during the year.

Motor vehicle licence fees Untied funds Motor vehicle permit fees Motor vehicle licence fees for Untied funds are appropriations Motor vehicle permit fees are cars and light vehicles are from the Consolidated Fund. collected under the Road raised under the Road Traffic The total appropriation from the Traffic Act and fees for heavy Act. The total licence fees Consolidated Fund in 2010–11 vehicles are raised under Main Roads Annual Report 2011 collected in 2010–11 was was $259.779 million. This the Road Transport Reform $522.535 million. An amount of includes a service appropriation (Heavy Vehicles Registration) $403.425 million was received of $145.714 million and Act for the issue of permit fees as a service appropriation and a capital contribution of for vehicles that are oversize, the balance of $119.110 million $114.065 million. The service special purpose or carry appropriated as a capital appropriation includes a cash oversize or extra loads. contribution by owners and component of $0.974 million included under ‘Contributed and a $144.740 million non Equity’ in the Statement of cash component. Financial Position.

145 Notes to the Financial Statements for the year ended 30 June 2011

Other funds received from Resources received Regional Community State Government free of charge Services Account Natural disaster funds Assets or services received This is a sub-fund within the Funds provided by the free of charge or for nominal over-arching ‘Royalties for Fire and Emergency Services cost are recognised as revenue Regions Fund’. The recurrent Authority for the re-opening at fair value of the assets funds are committed to and re-instatement of roads and/or services that can be projects and programs in WA damaged by declared reliably measured and which regional areas. The funds were natural disasters. would have been purchased utilised for the purposes of if they were not donated. meeting district allowances Contributions of assets or paid to employees working in services in the nature of regional areas. contributions by owners are recognised direct to equity.

2011 2010 $000 $000 22 Restricted cash and cash equivalents

Current Contractor’s deposits 820 1,326 Road Trauma Trust Fund 2,756 3,901 3,576 5,227 Contractor’s deposits Amounts withheld from contractors payments pending satisfactory completion of works.

Road Trauma Trust Fund Cash held in these accounts is to be used only for the purposes as prescribed in note 45 ‘Special purpose accounts’.

23 Receivables

Current Trade debtors 10,301 9,097 Allowance for impairment of receivables (237) (200) Trade debtors – unbilled receivables 3,127 2,984 GST receivable 8,931 10,786 Other debtors 541 1,082 Accrued revenue 211 206 Total current 22,874 23,955

Non-current Trade debtors - 7 Total non-current - 7 Total receivables 22,874 23,962

Reconciliation of changes in the allowance for impairment of receivables:

Balance at start of year 200 200 Doubtful debts expense 41 8 Amounts written off during the year - (8) Amounts recovered during the year (4) - Balance at end of year 237 200 Main Roads does not hold any collateral or other credit enhancements as security for receivables. 146 2011 2010 $000 $000

24 Amounts receivable for services

Current 46,907 42,979 Non-current 1,139,790 1,041,957 1,186,697 1,084,936

Represents the non-cash component of service appropriations. It is restricted in that it can only be used for asset replacement or payment of leave liability.

25 Inventories

Current Inventories held for distribution: - Construction and maintenance materials 72 62 Total current 72 62

Non-current Inventories held for distribution: - Construction and maintenance materials 1,501 6,068 Total non-current 1,501 6,068

26 Prepayments

Current Prepayments 12,272 2,274 Total current 12,272 2,274

Non-current Prepayments 578 - Total non-current 578 -

27 Non-current assets classified as held for sale

Freehold land and buildings Opening balance 2,409 16,060 Assets reclassified as held for sale 10,570 273 Main Roads Annual Report 2011 Assets removed from current disposal program (7) (9,241) Assets sold (4,037) (4,364) Write-down of assets from carrying value to fair value less selling costs (600) (319) Closing balance 8,335 2,409

147 Notes to the Financial Statements for the year ended 30 June 2011

2011 2010 $000 $000

28 Property, plant and equipment

Land At fair value (a) 96,686 82,416 96,686 82,416 Buildings At fair value (a) 107,673 98,445 Accumulated depreciation (4,914) (55) 102,759 98,390 Buildings under construction Construction costs 3,373 2,679 3,373 2,679 Plant, equipment and vehicles At cost 24,411 22,526 Accumulated depreciation (15,089) (13,122) 9,322 9,404 Surplus assets At fair value (a) 100,431 98,820 100,431 98,820 Land acquired for roadworks At fair value (a) 201,563 181,189 201,563 181,189 Total property, plant and equipment 514,134 472,898

(a) Land, buildings, surplus assets and land acquired for roadworks were revalued as at 1 July 2010 by the Western Australian Land Information Authority (Valuation Services) in conjunction with estimations by Main Roads’ management. The valuations were performed during the year ended 30 June 2011 and recognised at 30 June 2011.

The estimations have been made in relation to the value of certain Metro and Rural properties where the values were not available at the end of the reporting period from information provided by Valuation Services for the period 1 July 2009 to 1 July 2010. These properties have been valued based on the average percentage increase for the Metro and Rural areas respectively over the period 1 July 2009 to 1 July 2010. The average percentage increases have been determined by calculating the movement in the value of Main Roads’ Metro and Rural properties where Valuation Services have provided a value. The effective date of the valuations is 1 July 2010. In undertaking the revaluation, fair value was determined by reference to market values of Freehold land $96.686 million and Buildings $102.759 million.

To ensure the valuations provided by Valuation Services were compliant at 30 June 2011 with the fair value requirements under AASB 116, Valuation Services provided the Department of Treasury and Finance (DTF) with information that tracked the general movement of the market value of land and building construction costs from the 1 July 2010 (date of valuation) to 31 March 2011. DTF reviewed the information and determined that the change in fair values from 1 July 2010 (date of valuation) to 31 March 2011 were not likely to have a material impact on the fair values of these assets as recognised at 30 June 2011.

148 Reconciliations of the carrying amounts of property, plant, equipment and vehicles at the beginning and end of the reporting period are set out in the table below.

Buildings Plant, Land Freehold under equipment Surplus acquired for land Buildings construction and vehicles assets roadworks Total $000 $000 $000 $000 $000 $000 $000 2011

Carrying amount at start of year 82,416 98,390 2,679 9,404 98,820 181,189 472,898

Additions 717 3,705 761 2,740 - 4,187 12,110

Disposals (559) - - (60) - - (619)

Classified as held for sale (1,427) (90) - - (7,190) (1,235) (9,942)

Transfers 275 67 (67) - (1,161) 1,140 254

Transfer to infrastructure - - - - (535) (606) (1,141)

Revaluation increments / (decrements) 15,264 6,446 - - 10,497 16,888 49,095

Depreciation - (5,759) - (2,762) - - (8,521)

Carrying amount at end of year 96,686 102,759 3,373 9,322 100,431 201,563 514,134

2010

Carrying amount at start of year 81,420 78,142 12,666 7,338 78,628 155,279 413,473

Additions 1,816 706 10,663 4,339 2 285 17,811

Disposals (90) - - (15) - - (105)

Classified as held for sale - - - - (214) (23) (237)

Transfers 413 20,674 (20,650) 117 8,645 - 9,199

Transfer to infrastructure - - - - - (5,339) (5,339)

Revaluation Main Roads Annual Report 2011 increments / (decrements) (1,143) 2,917 - - 11,759 30,987 44,520

Depreciation - (4,049) - (2,375) - - (6,424)

Carrying amount at end of year 82,416 98,390 2,679 9,404 98,820 181,189 472,898

149 Notes to the Financial Statements for the year ended 30 June 2011

2011 2010 $000 $000 29 Infrastructure

Infrastructure At fair value 46,624,182 43,546,171 Accumulated depreciation (8,251,370) (7,710,646) 38,372,812 35,835,525 Infrastructure – work in progress Construction costs 462,113 554,536 38,834,925 36,390,061

The value of roads and principal shared paths (earthworks, drainage, pavements and seals), bridges and road furniture at 30 June 2011 is based on the current depreciated replacement cost determined at 30 June 2011 by Main Roads. A comprehensive revaluation has been applied as at 30 June 2011 using construction unit rates obtained from professional quantity surveying firms which represent the fair value to replace the assets, and applying these against the units for each infrastructure category.

For principal shared paths, the value at 30 June 2011 has been determined by applying a cost index (ABS Road and Bridge Construction cost index) on the current depreciated replacement cost to ensure the asset value does not materially differ from fair value.

Land within road reserves was revalued at 30 June 2011 using 1 July 2010 values supplied by the Western Australian Land Information Authority (Valuation Services).

Infrastructure work in progress comprises capital project expenditure at cost, which is capitalised following the completion of projects.

Reconciliation Carrying amount at start of year 36,390,061 36,977,981 Additions 383,271 600,842 Capital contribution (53,600) 3,068 Land transferred from land acquired for roadworks 1,141 4,059 Reclassified to non-current assets - (319) Revaluation increments/(decrements) 2,301,355 (1,227,090) Local roads reclassified as highways and main roads 39,419 268,037 Infrastructure assets retired/replaced (15,013) (45,493) Depreciation expense (209,647) (190,858) Disposals-highways and main roads reclassified as local roads (2,432) (166) Transfers to/from operating (prior year adjustments) 370 - Carrying amount at end of year 38,834,925 36,390,061

150 2011 2010 $000 $000 30 Intangible assets

Computer software and licences At cost 7,675 6,194 Accumulated amortisation (2,882) (2,608) 4,793 3,586 Drainage easements At cost 9 9 9 9 Total intangible assets 4,802 3,595

Reconciliations: Computer software and licences Carrying amount at start of year 3,586 2,457 Additions 1,487 1,285 Disposals - - Transfers - 128 Amortisation expense (280) (284) Carrying amount at end of year 4,793 3,586

31 Impairment of assets

At 30 June 2011, one Eight properties have been All surplus assets at structural asset was identified identified as impaired and a 30 June 2011 have either been as impaired. A bridge located revaluation decrement has been classified surplus, as assets in the Kimberley region was applied to the carrying value in held for sale or written off. damaged due to flooding during previous financial year. the financial year. As such the bridge is not expected to Main Roads held no goodwill reach its’ original design life. during the reporting period A revaluation decrement has and at the end of the reporting been applied to the assets’ period there were no intangible carrying value to recognise the assets not yet available for impairment. The value of the use that are considered to impairment is $0.867 million. be impaired. Main Roads Annual Report 2011

151 Notes to the Financial Statements for the year ended 30 June 2011

2011 2010 $000 $000 32 Payables

Current Trade creditors 16,008 21,943 Major contracts and services 82,147 78,362 Property acquisitions 62,012 64,682 Contractors retention 821 1,326 Funds in advance 15,840 13,073 Performance bonds / surety 290 129 Accrued salaries 1,669 3,218 Total current 178,787 182,733

Non-current Major contracts and services 1,027 919 Total non-current 1,027 919

33 Borrowings

Current WA Treasury Corporation loans 5,000 5,000 Total current 5,000 5,000

Non-current WA Treasury Corporation loans 20,766 25,766 Total non-current 20,766 25,766

34 Provisions

Current Employee benefits provisions Annual leave 14,682 14,236 Long service leave 21,415 18,523 36,097 32,759 Other provisions Employment on-costs 292 - 36,389 32,759

Non-current Employee benefits provisions Long service leave 3,110 4,627 3,110 4,627 Other provisions Employment on-costs 25 - 3,135 4,627

152 2011 2010 $000 $000

(a)  Annual leave liabilities have been classified as current as there is no unconditional right to defer settlement for at least 12 months after the reporting period. Assessments indicate that actual settlement of the liabilities will occur as follows:

Within 12 months of the end of the reporting period 8,902 6,856 More than 12 months after the reporting period 5,780 7,380 14,682 14,236

(b)  Long service leave liabilities have been classified as current where there is no unconditional right to defer settlement for at least 12 months after the reporting period. Assessments indicate that actual settlement of the liabilities will occur as follows:

Within 12 months of the end of the reporting period 2,727 2,306 More than 12 months after the reporting period 21,798 20,844 24,525 23,150

(c)  The settlement of annual and long service leave liabilities gives rise to the payment of employment on-costs including workers’ compensation insurance. The provision is the present value of expected future payments. The associated expense, apart from the unwinding of the discount (finance cost), is disclosed in note 7 ‘Supplies and services’.

Movements in other provisions Movements in each class of provisions during the financial year, other than employee benefits, are set out below.

Employment on-cost provision Carrying amount at start of period - - Additional provisions recognised 317 - Payments/other sacrifices of economic benefits - - Unwinding of the discount - - Carrying amount at end of period 317 - Main Roads Annual Report 2011

153 Notes to the Financial Statements for the year ended 30 June 2011

2011 2010 $000 $000

35 Equity

The Government holds the equity interest in Main Roads on behalf of the community. Equity represents the residual interest in the net assets of Main Roads. The asset revaluation surplus represents that portion of equity resulting from the revaluation of non-current assets.

Contributed equity Balance at start of period 2,686,023 2,340,498

Contributions by owners Capital contribution 233,175 344,688

Transfer of net assets from other agencies Department of Premier and Cabinet - (2,141) Public Transport Authority 1,410 3,572 Western Australian Planning Commission - 598 Department of Regional Development and Lands 405 - Total contributions by owners 234,990 346,717

Distributions to owners Transfer of net assets to other agencies Public Transport Authority 55,010 1,102 Western Australian Planning Commission - 90 Department of Regional Development and Lands 151 - Total distributions to owners 55,161 1,192

Balance at end of period 2,865,852 2,686,023

Reserves Asset revaluation surplus Balance at start of year 24,374,269 25,557,161 Net revaluation increments/(decrements) Earthworks, Drainage, Pavements and Seals 804,922 - Bridges 288,738 (5,423) Land within Road Reserves 1,238,970 (1,221,667) Road Furniture (31,275) - Land and Buildings 48,495 44,198 Balance at end of period 26,724,119 24,374,269

Accumulated surplus/(deficit) Balance at start of year 10,939,755 10,555,708 Result for the period 36,563 384,047 Income and expense recognised directly in equity - - Balance at end of period 10,976,318 10,939,755

154 2011 2010 $000 $000

36 Notes to the Statement of Cash Flows

Reconciliation of cash Cash at the end of the financial year as shown in the Statement of Cash Flows is reconciled to the related items in the Statement of Financial Position as follows:

Cash and cash equivalents 221,628 260,359 Restricted cash and cash equivalents 3,576 5,227 225,204 265,586

Reconciliation of net cost of services to net cash flows provided by/(used in) operating activities Net cost of services (533,251) (205,506)

Non-cash items: Depreciation expense – infrastructure 209,647 190,858 Depreciation and amortisation expense – other fixed assets 4,704 3,750 Grants to other bodies 2,991 166 Grants received from other bodies (39,419) (268,037) Resources received free of charge 1,079 2,238 Infrastructure assets retired/replaced 15,013 45,493 Adjustment for other non-cash items (66) - Net (gain)/loss on sale of property, plant and equipment (1,356) (5,651)

(Increase)/decrease in assets: Receivables 1,573 12,678 Inventories 4,557 370 Prepayments (10,576) -

Increase/(decrease) in liabilities: Payables 12,099 (12,829) Provisions 2,138 3,884

Net GST receipts/(payments) 79,000 96,462 Change in GST in receivables/payables (77,145) (99,027) Net cash provided by/(used in) operating activities (329,012) (235,151) Main Roads Annual Report 2011

37 Resources provided free of charge

During the year the following resources were provided to other agencies free of charge for functions outside the normal operations of Main Roads:

Department of Planning – provision of technical advice - 193 Department of Transport – provision of technical advice - 7 - 200

155 Notes to the Financial Statements for the year ended 30 June 2011

2011 2010 $000 $000 38 Commitments

The commitments below are inclusive of GST where relevant.

Capital expenditure commitments Capital expenditure commitments, being contracted capital expenditure additional to the amounts reported in the financial statements, are payable as follows:

Within 1 year 221,478 88,186 Later than 1 year and not later than 5 years 136,761 1,063 Later than 5 years 217 34 358,456 89,283 The capital commitments include amounts for:

Infrastructure 358,456 89,283

Lease commitments Commitments in relation to leases contracted for at the end of the reporting period but not recognised in the financial statements are payable as follows:

Within 1 year 3,662 3,357 Later than 1 year and not later than 5 years 2,395 1,579 Later than 5 years - - 6,057 4,936 Representing: Cancellable operating leases 4 869 Non-cancellable operating leases 6,053 4,067 6,057 4,936

Non-cancellable operating lease commitments Commitments for minimum lease payments are payable as follows:

Within 1 year 3,658 2,687 Later than 1 year and not later than 5 years 2,395 1,380 Later than 5 years - - 6,053 4,067

Other expenditure commitments Other expenditure commitments predominantly comprise maintenance commitments for road infrastructure assets contracted for at the end of the reporting period but not recognised as liabilities, are payable as follows:

Within 1 year 365,846 275,584 Later than 1 year and not later than 5 years 1,213,737 14,491 Later than 5 years - - 1,579,583 290,075

156 2011 2010 $000 $000 39 Contingent liabilities and contingent assets

Contingent liabilities The following contingent liabilities are additional to the liabilities included in the financial statements:

Contract claims in dispute 3,061 3,337 Resumption claims in dispute 242,279 226,904 245,340 230,241

Contract claims in dispute Claims have been submitted by contractors in relation to services provided under roadwork contracts. The contingent liability is the difference between the amount of the claim and the liability estimated by Main Roads based on legal advice.

Resumption claims in dispute Claims have been lodged by owners of property acquired for road construction purposes. The contingent liability is the difference between the owner’s claim and the estimated settlement price determined by Main Roads in accordance with an independent valuation.

Contaminated sites Under the Contaminated Sites Act 2003, Main Roads is required to report known and suspected contaminated sites to the Department of Environment and Conservation (DEC). In accordance with the Act, DEC classifies these sites on the basis of the risk to human health, the environment and environmental values. Where sites are classified as contaminated – remediation required or possibly contaminated – investigation required, Main Roads may have a liability in respect of investigation or remediation expenses.

During the year, Main Roads reported twelve suspected contaminated sites to DEC. Six were classified as possibly contaminated – investigation required, four were classified as contaminated – remediation required, one was classified as remediated for restricted use and one is yet to be classified. Main Roads is unable to assess the likely outcome of the classification process, and accordingly, it is not practicable to estimate the potential financial effect or to identify the uncertainties relating to the amount or timing of any outflows. Whilst there is no possibility of reimbursement of any future expenses that may be incurred in the remediation of these sites, Main Roads may apply for funding from the Contaminated Sites Management Account to undertake further investigative work or Main Roads Annual Report 2011 to meet remediation costs that may be required.

Contingent assets The following contingent assets are additional to the assets included in the financial statements:

Contracts in dispute 21,938 50,189 Damages claim in progress 2,417 2,839 24,355 53,028

157 Notes to the Financial Statements for the year ended 30 June 2011

Contracts in dispute (dispute resolution in progress) The amount shown relates to claims against various contractors for deficient works, which are currently proceeding through dispute resolution processes. The potential financial effect of the success of the claims cannot be reliably measured at this time.

Damages claim in progress The damages claim in progress relates to damage to Main Roads infrastructure by a third party. The potential financial effect of the success of the claim cannot be reliably measured at this time.

40 Events occurring after the end of the reporting period

There were no events occurring after the end of the reporting period that have any financial effect on the results reported on these financial statements.

41 Explanatory statements This statement provides details of any significant variations between estimates and actual results for 2011 and between the actual results for 2011 and 2010. Significant variations are considered to be those greater than 10% and $5 million.

Significant variances between estimated and actual result for 2011

2011 2011 Estimate Actual Variation $000 $000 $000

Expenses Other expenses 77,481 66,401 11,080

Income Sale of goods and services 22,501 14,080 8,421 Other revenue 55,463 70,021 (14,558)

Other expenses The variation is due to lower than expected completion of replacement road works construction/ capitalisation for the year.

Sale of goods and services Sale of goods and services comprises works undertaken by Main Roads on behalf of other organisations. The variation was due to delays in works completed resulting in lower than anticipated revenue.

Other revenue The variation was due to notional transactions relating to works undertaken by private organisations on Main Roads infrastructure assets. Significant transactions include notional contributions from Mount Gibson Mining and Fortescue Metals Group.

158 Significant variances between actual result for 2011 and 2010

2011 2010 Variation $000 $000 $000

Expenses Employee benefits expense 65,019 55,614 9,405 Grants and subsidies 140,469 112,101 28,368 Infrastructure assets retired/replaced 15,013 45,493 (30,480)

Income Regulatory fines 18,682 13,221 5,461 Commonwealth grants and contributions 196,666 234,575 (37,909) Grants from other bodies 39,419 268,037 (228,618)

Employee benefits expense The variance is due to a reduction in the amount directly charged to capital projects this financial year and also as a result of increases based on Main Roads Enterprise Bargaining Agreement.

Grants and subsidies The variance is due to higher level of road project grants paid to local government authorities based on claims submitted during the financial year.

Infrastructure assets retired/replaced The variance is due to less road reconstruction works during the financial year.

Regulatory fines The variance is due to higher level of receipts from photographic based vehicle infringement notices during the financial year Commonwealth grants and contributions.

Commonwealth grants and contributions The variance is due to significant reduction in receipts as a result of lower claims for Commonwealth funded projects offset by receipts from the Jobs Fund grant received during the financial year.

Grants from other bodies The variance is due to a significant transaction in the previous year relating to the transfer of the

Mount Magnet route from Local Government. Main Roads Annual Report 2011

159 Notes to the Financial Statements for the year ended 30 June 2011

42 Financial instruments

(a) Financial risk management Liquidity risk objectives and policies Liquidity risk arises when Main Roads is unable to Financial instruments held by Main Roads are meet its financial obligations as they fall due. cash and cash equivalents, restricted cash and cash equivalents, borrowings, loans and Main Roads is exposed to liquidity risk through its receivables, and payables. Main Roads has trading in the normal course of business. limited exposure to financial risks. Main Roads’ Main Roads has appropriate procedures to overall risk management program focuses on manage cash flows including drawdowns of managing the risks identified below. appropriations by monitoring forecast cash flows Credit risk to ensure that sufficient funds are available to meet its commitments. Credit risk arises when there is the possibility of Main Roads’ receivables defaulting on their Market risk contractual obligations resulting in financial loss Market risk is the risk that changes in market to Main Roads. prices such as foreign exchange rates and The maximum exposure to credit risk at end interest rates will affect Main Roads’ income or of the reporting period in relation to each class the value of its holdings of financial instruments. of recognized financial assets is the gross Main Roads does not trade in foreign currency carrying amount of those assets inclusive of any and is not materially exposed to other price risks. provisions for impairment as shown in the table at Main Roads’ exposure to market risk for changes note 42(c) ‘Financial instrument disclosures’ and in interest rates relates primarily to the long-term note 23 ‘Receivables’. debt obligations.

Credit risk associated with Main Roads’ financial All borrowings are due to the Western Australian assets is minimal because the main receivable Treasury Corporation (WATC) and are repayable is the amounts receivable for services (holding at fixed rates with varying maturities. The account). For receivables other than government, risk is managed by WATC through portfolio Main Roads trades only with recognised, diversification and variation in maturity dates. creditworthy third parties. Main Roads has Main Roads cash and cash equivalents and policies in place to ensure that sales of products restricted cash assets are interest bearing (apart and services are made to customers with an from a minor amount) and therefore subject to appropriate credit history. In addition, receivable interest rate risk as detailed in the interest rate balances are monitored on an ongoing basis sensitivity analysis table at note 42(c). with the result that Main Roads’ exposure to bad debts is minimal. At the end of the reporting period there were no significant concentrations of credit risk.

160 (b) Categories of financial instruments In addition to cash and bank overdraft, the carrying amounts of each of the following categories of financial assets and financial liabilities at the end of the reporting period are:

2011 2010 $000 $000

Financial Assets Cash and cash equivalents 221,628 260,359 Restricted cash and cash equivalents 3,576 5,227 Loans and receivables (a) 1,200,640 1,098,112

Financial Liabilities Financial liabilities measured at amortised cost 205,580 214,418

(a) The amount of loans and receivables excludes GST recoverable from the ATO (statutory receivable).

(c) Financial instrument disclosures Credit risk and interest rate exposures The following table discloses Main Roads’ maximum exposure to credit risk, interest rate exposures and the ageing analysis of financial assets. Main Roads’ maximum exposure to credit risk at the end of the reporting period is the carrying amount of financial assets as shown below. The table discloses the ageing of financial assets that are past due but not impaired and impaired financial assets. The table is based on information provided to senior management of Main Roads.

Main Roads does not hold any collateral as security or other credit enhancement relating to the financial assets it holds.

Main Roads does not hold any financial assets that had to have their terms renegotiated that would have otherwise resulted in them being past due or impaired.

Interest rate exposures and ageing analysis of financial assets (a)

Interest rate exposure Past due but not impaired Weighted Average Fixed Variable More Impaired Effective Carrying interest interest Non-interest Up to 3-12 1-2 2-5 than financial Interest Rate Amount rate rate bearing 3 months months years years 5 years assets % $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 Financial Assets 2011 Cash and cash equivalents 5.11 221,628 - 221,615 13 ------Restricted cash and cash equivalents 5.11 3,576 - 3,576 ------Receivables (a) - 13,943 - - 13,943 4,679 394 23 - - 237 Amounts receivable Main Roads Annual Report 2011 for services - 1,186,697 - - 1,186,697 ------1,425,844 - 225,191 1,200,653 4,679 394 23 - - 237 2010 Cash and cash equivalents 3.94 260,359 - 260,346 13 ------Restricted cash and cash equivalents 3.94 5,227 - 5,227 ------Receivables (a) - 13,176 - - 13,176 4,343 126 44 - - 200 Amounts receivable for services - 1,084,936 - - 1,084,936 ------1,363,698 - 265,573 1,098,125 4,343 126 44 - - 200

(a) The amount of receivables excludes the GST recoverable from the ATO (statutory receivable).

161 Notes to the Financial Statements for the year ended 30 June 2011

Liquidity risk The following table details the contractual maturity analysis for financial liabilities. The table includes interest and principal cash flows. An adjustment has been made where material.

Interest rate exposures and maturity analysis of financial liabilities(a)

Interest rate exposure Maturity date Weighted Average Effective Fixed Variable Non- Adjustment Total More Interest Carrying interest interest interest for Nominal Up to 3-12 1-2 2-5 than Rate Amount rate rate bearing discounting Amount 3 months months years years 5 years % $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 Financial Liabilities 2011 Payables - 179,814 - - 179,814 - 179,814 - - - - - WATC Loan 5.75 25,766 25,766 - - - 25,766 - 5,000 5,000 9,891 5,875 205,580 25,766 - 179,814 - 205,580 - 5,000 5,000 9,891 5,875 2010 Payables - 183,652 - - 183,652 - 183,652 - - - - - WATC Loan 5.66 30,766 30,766 - - - 30,766 - 5,000 5,000 15,000 5,766 214,418 30,766 - 183,652 - 214,418 - 5,000 5,000 15,000 5,766

(a) The amounts disclosed are the contractual undiscounted cash flows of each class of financial liabilities at the end of the reporting period.

Interest rate sensitivity analysis The following table represents a summary of the interest rate sensitivity of Main Roads’ financial assets and liabilities at the end of the reporting period on the surplus for the period and equity for a 0.75% change in interest rates. It is assumed that the change in interest rates is held constant throughout the reporting period.

-75 basis points +75 basis points Carrying amount Surplus Equity Surplus Equity $000 $000 $000 $000 $000 2011 Financial Assets Cash and cash equivalents 221,615 (1,662) (1,662) 1,662 1,662 Restricted cash and cash equivalents 3,576 (27) (27) 27 27 Total Increase/(Decrease) (1,689) (1,689) 1,689 1,689

2010 Financial Assets Cash and cash equivalents 260,346 (1,953) (1,953) 1,953 1,953 Restricted cash and cash equivalents 5,227 (39) (39) 39 39 Total Increase/(Decrease) (1,992) (1,992) 1,992 1,992

162 43 Remuneration of members of the accountable authority and senior officers

Remuneration of members of the accountable authority The number of members of the accountable authority, whose total of fees, salaries, superannuation, non-monetary benefits and other benefits for the financial year, fall within the following bands are:

$ 2011 2010 0 – 20,000 1 - 480,001 – 500,000 - 1

The total remuneration of members of the accountable authority - 488

The total remuneration includes the superannuation expense incurred by Main Roads in respect of members of the accountable authority.

No members of the accountable authority are members of the Pension Scheme.

The remuneration of the incumbent Commissioner of Main Roads is met by the Department of Transport.

Remuneration of senior officers The number of senior officers, other than senior officerseported r as members of the accountable authority, whose total fees, salaries, superannuation, non-monetary benefits and other benefits for the financial year fall within the following bands are:

$ 2011 2010 120,001 – 140,000 - 1 140,001 – 160,000 - 1 160,001 – 180,000 1 1 180,001 – 200,000 2 - 220,001 – 240,000 - 1 240,001 – 260,000 1 3 260,001 – 280,000 3 1 320,001 – 340,000 1 - 340,001 – 360,000 - 1 360,001 – 380,000 1 - Main Roads Annual Report 2011 520,001 – 540,000 1 -

The total remuneration of senior officers 2,862 2,045

The total remuneration includes the superannuation expense incurred by Main Roads in respect of senior officers other than senior officers reported as members of the accountable authority.

No senior officers are members of the Pension Scheme.

163 Notes to the Financial Statements for the year ended 30 June 2011

2011 2010 $000 $000

44 Remuneration of auditor

Remuneration paid or payable to the Auditor General in respect of the audit for the current financial year is as follows:

Auditing the accounts, financial statements and performance indicators 151 145 Other audits 10 9 161 154

45 Special purpose accounts

Special Purpose Account – section 16(1)(c) of FMA Road Trauma Trust Fund In accordance with section 12 of the Road Safety Council Act 2002, the purpose of the Fund is to receive and hold funds from parliamentary appropriations, one-third of all moneys from photographic based vehicle infringement (via Department of Transport and Department of the Attorney General) and any money lawfully received for the purpose of the Act.

Balance at the start of the financial year 3,901 2,044 Receipts 22,080 28,489 Payments (23,225) (26,632) Balance at the end of the financial year 2,756 3,901

46 Supplementary financial information

W rite-offs Bad debts – damage to roads, bridges and road furniture - 8 Fixed asset stocktake discrepancies - 4 Inventory – stocktake discrepancies and obsolete/contaminated materials 1 27 1 39

47 Indian Ocean Territories

Main Roads provides road management services to Indian Ocean Territories under service delivery arrangements with the Shires of Christmas Island and Cocos (Keeling) Islands. The amounts expended or set aside for expenditure during 2010—11 are summarised below:

Amount brought forward for recovery (61) 61 Amount received during the year - (160) (61) (99) Expenditure during the year 62 38 Amount carried forward for recovery 1 (61)

164 48. Schedule of income and expenses by service

Schedule of Income and Expenses Infrastructure Roadworks Capitalised/ by Service for 2009-10 and 2010-11 Road System Road Efficiency Infrastructure For Road Network For State Office Of Expenses not allocated (All amounts in $’000) Road Safety Management Improvements Community Access Maintenance Development Road Safety to Outputs Total 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 COST OF SERVICES Expenses Employee benefits expense 2,259 3,504 44,975 40,875 7,920 6,185 2,223 2,004 12,820 10,600 6,513 8,991 2,221 2,498 (20,016) (23,733) 58,915 50,924 Supplies and services 81,919 142,872 33,702 29,136 188,415 167,325 29,191 25,048 292,726 272,582 99,620 271,119 12,435 10,497 (360,428) (575,129) 377,580 343,450 Depreciation of infrastructure assets ------209,647 190,858 ------209,647 190,858 Depreciation and amortisation of other non-current assets 495 554 481 305 1,095 675 200 107 1,848 1,124 558 951 27 34 - - 4,704 3,750 Finance costs 168 263 163 145 371 321 68 51 626 536 189 452 - - - - 1,585 1,768 Grants and subsidies 16,665 16,740 5,923 7,758 26,254 24,033 8,794 3,858 68,450 45,636 6,938 2,693 10,235 16,522 (2,790) (5,139) 140,469 112,101 Infrastructure assets retired / replaced ------15,013 45,493 15,013 45,493 Superannuation 629 679 611 374 1,390 827 254 131 2,345 1,381 708 1,164 167 134 - - 6,104 4,690 Total Cost of Services 102,135 164,612 85,855 78,593 225,445 199,366 40,730 31,199 588,462 522,717 114,526 285,370 25,085 29,685 (368,221) (558,508) 814,017 753,034

Income Revenue Contributions to roadworks 170 2,104 108 72 1,070 263 1,410 934 7,306 1,909 2,027 1,874 - - - - 12,091 7,156 Commonwealth grants and contributions 13,077 3,917 - 195 100,859 60,510 13,500 7 61,975 58,415 7,255 111,531 - - - - 196,666 234,575 Sale of goods and services 40 - 11 238 44 (87) 15 26 1,493 3,499 385 625 - - - - 1,988 4,301 Grants from other bodies 3,480 34,421 2,925 16,434 7,680 41,687 1,388 6,524 20,046 109,301 3,900 59,670 - - - - 39,419 268,037 Regulatory fines ------18,682 13,221 - - 18,682 13,221 Interest revenue 268 646 225 308 592 783 107 122 1,544 2,052 302 1,121 - - - - 3,038 5,032 Other revenue 739 931 621 445 1,631 1,128 295 176 4,257 2,957 829 1,614 (846) 2,304 - - 7,526 9,555 Total Revenue 17,774 42,019 3,890 17,692 111,876 104,284 16,715 7,789 96,621 178,133 14,698 176,435 17,836 15,525 - - 279,410 541,877

Gains Gain on disposal of non-current assets 120 726 101 346 264 879 48 138 689 2,304 134 1,258 - - - - 1,356 5,651

Total Gains 120 726 101 346 264 879 48 138 689 2,304 134 1,258 - - - - 1,356 5,651

Total Income other than Income from State Government 17,894 42,745 3,991 18,038 112,140 105,163 16,763 7,927 97,310 180,437 14,832 177,693 17,836 15,525 - - 280,766 547,528

NET COST OF SERVICES 84,241 121,867 81,864 60,555 113,305 94,203 23,967 23,272 491,152 342,280 99,694 107,677 7,249 14,160 (368,221) (558,508) 533,251 205,506

Income From State Government Service appropriation 35,205 28,702 70,908 67,184 47,033 36,120 16,215 6,651 338,167 370,602 39,424 60,892 8,238 8,238 - - 555,190 578,389 Capital contribution 32,973 81,031 747 297 91,146 94,400 6,724 15,705 2,688 3,013 45,552 151,079 - - (179,830) (345,525) - - Natural disaster funds ------13,152 8,926 ------13,152 8,926 Royalties for Region 25 - 51 - 34 - 12 - 243 - 28 - - - - - 393 - Resources received free of charge 95 287 80 137 210 347 38 54 549 910 107 498 - 5 - - 1,079 2,238 Total Income from State Government 68,298 110,020 71,786 67,618 138,423 130,867 22,989 22,410 354,799 383,451 85,111 212,469 8,238 8,243 (179,830) (345,525) 569,814 589,553

SURPLUS/DEFICIT FOR THE PERIOD (15,943) (11,847) (10,078) 7,063 25,118 36,664 (978) (862) (136,353) 41,171 (14,583) 104,792 989 (5,917) 188,391 212,983 36,563 384,047

Annual Report 2011 Report Annual 165 Roads Main Appendices

166 Main Roads Annual Report 2011 167 Appendices

GRI Reporting Index

GRI Report No. Indicator Status Comments Page

1.1 Statement from the most senior decision Managing Director’s Message. 7 maker in the organisation about the relevance of sustainability to the organisation, and its strategy.

1.2 Description of key impacts, risks and Significant Challenges and Opportunities, 22 opportunities – details of the significant Department of Treasury and Finance issues impacting our agency can be Budget Papers*. accessed on the Department of Treasury and Finance website under Budget Papers

2.1 Name of the Organisation. Front Cover. N/A

2.2 Primary brands, products, and/or services. Vision and Values. 2-3

2.3 Operational structure of the organisation. Our Organisational Structure (appendix). 184

2.4 Location of organisation’s headquarters About this Report; Contacts N/A (Inside Back cover).

2.5 Number of countries where the Inside Back Cover. N/A organisation operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.

2.6 Nature of ownership and legal form. Legal Compliance. 100

2.7 Markets served including geographic Vision and Values; 2-3 breakdown, sectors served, and types of Our Role; Inside Back Cover. customers/beneficiaries.

2.8 Scale of the reporting organisation. Our Role; 3 Financial Overview; 18-19 Our People – Our Employees. 74

2.9 Significant changes during the reporting Maintenance Program – ISA Update. 41 period regarding size, structure, or ownership.

2.10 Awards received during reporting period Road Safety; 24 State Development; 33 Community Access; 43 Office of Road Safety; Sustainability; 46, 56 Enhancing Community Relationships; 66 Our People; 74 Safety, Health and Well-being. 83

3.1 Reporting period (e.g., fiscal/calendar year) About this Report; Statement of Compliance. 1 for information provided.

3.2 Date of most recent previous report (if any). About this Report. N/A

3.3 Report Cycling (annual, biennial, etc.) About this Report. N/A

3.4 Contact person(s) for the report, including About this Report; Back cover. N/A email and web addresses.

*Refer to http://www.dtf.wa.gov.au/cms/uploadedFiles/State_Budget/Budget_2009_2010/2009–10_bp2_vol2.pdf.

168 GRI Report No. Indicator Status Comments Page

3.5 Process for defining report content. About this Report; Sustainability – Performance and Reporting 61 Content of this annual report is determined by the Office of the Auditor General. GRI guidance is adopted for the reporting of key Sustainability priorities.

3.6 Boundaries of report. Statement of Compliance; 1 Role; 3 Contracts Exceeding $1 Million; 182 Organisational Structure. 184

3.7 State any specific limitations on the scope. No specific limitations. N/A

3.8 Basis for reporting on joint ventures, Notes to Financial Statements. 127- subsidiaries, leased facilities, outsourced 165 operations, and other entities that can significantly affect comparability from period to period and/or between organisations.

3.9 Data measurement techniques and Main Roads does not substantially diverge N/A the bases of calculations, including from the GRI protocols. assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols.

3.10 Explanation of the effect of any re- Summary of Key Performance Measures. 106 statements of information provided in earlier reports, and the reasons for such re-statement (e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods).

3.11 Significant changes from previous No significant changes. N/A reporting periods in the scope, boundary, or measurement methods applied in the report.

3.12 Table identifying the location of the This table. Standard Disclosures in the report.

3.13 Policy and current practice with regard to Sustainability data not externally assured. N/A seeking external assurance for the report

4.1 Governance structure of the organisation, Our Corporate Executive Team. 12

including committees under the highest Main Roads Annual Report 2011 governance body responsible for specific tasks, such as setting strategy or organisational oversight.

4.2 Indicate whether the Chair of the Yes the Managing Director is also an N/A highest governance body is also an Executive Officer. executive officer.

4.3 For organisations that have a unitary Main Roads does not have a unitary board N/A board structure, state the number of structure as it is governed by Corporate members of the highest Governance Executive and reports directly to the Minister body that are independent and/or non- for Transport. executive members.

169 Appendices

GRI Report No. Indicator Status Comments Page

4.4 Mechanisms for shareholders and Community Engagement; 67 employees to provide recommendations or Customer Service; 68-70 direction to the highest governance body. Understanding Community Perception Measures; Governance Practices. 92-97

4.5 Linkage between compensation for There is no linkage as employees are covered N/A members of the highest Governance body, by Collective Bargaining Agreements that senior managers, and executives, and the include base salary increases for satisfactory organisation’s performance. or higher performance, usually in terms of incremental progression through pay points or through a percentage increase. The Agreements include links to organisational goals, values and the basis for providing employee with a clear statement of expectations through their Individual Development Plans.

4.6 Processes in place for the highest Each Executive Director on Corporate N/A Governance body to ensure conflicts of Executive is required to sign a representation interests are avoided. memorandum addressed to the Managing Director which includes a section on personal interests in Main Roads’ contracts. The Chief Finance Officer, Managing Director and Accountable Authority then sign a Management Representation Letter addressed to the Auditor General covering a number of categories including Internal Controls and Risk Management.

4.7 Process for determining the qualifications On appointment all members of the highest N/A and expertise of the members of the Governance body (Corporate Executive) have highest Governance body for guiding been assessed through a vigorous selection the organisation’s strategy on economic, process against key selection criteria and environmental and social topics. values. Ongoing assessment of qualifications and expertise is assessed through Individual Development Plans.

4.8 Internally developed statements of mission Our Values and Code of Conduct; N/A or value codes of conduct, and principles Environmental Policy were developed in relevant to economic, environmental and consultation with staff stakeholders and social performance and the status of have been fully implemented for more than their implementation. 5 years and are embedded in our Individual Development Plans.

4.9 Procedures of the highest Governance Performance Agreement between our N/A body for overseeing the organisation’s Managing Director, the Director General identification and management of Transport, the Minister for Transport and the economic, environmental, and social Department of Treasury and Finance. performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, Codes of Conduct and principles.

4.10 Processes for evaluating the highest Main Roads has been developing a number N/A Governance body’s own performance. of mechanisms to assess Corporate Executives performance including the use of the Australian Business Excellence Framework. Results of this process will be reported in future Annual Report.

4.11 Explanation of whether and how the Visions and Values. 2-3 precautionary approach or principle is addressed by the organisation.

170 GRI Report No. Indicator Status Comments Page

4.12 Externally developed economic, As a Government Agency, Main Roads N/A environmental, and social charters, does not subscribe to any externally principles, or other initiatives to which the developed charters. organisation subscribes or endorses.

4.13 Memberships in associations (such as Enhancing Community Relationships; N/A industry associations) and/or national/ ARRB Group Ltd; Austroads Ltd Board; international advocacy organisations. CEEIID CEO Group; National Engineers Registration Board; PATREC (Planning and Transport Research Centre) Board; ROADS Foundations Board; World Road Association (PIARC) Council; UWA Engineering Foundation Advisory Board; Curtin School of Management Advisory Board; Australian Library and Information Association; Records Management Association of Australia; Road Safety Council of WA Transport Certification Australia Ltd Board; Engineering Foundation; Roadside Conservation Committee, AGIC & City Switch

4.14 List of stakeholder groups engaged Enhancing Community Relationships – 68 by the organisation. Advisory Groups

4.15 Basis for identification and selection of Enhancing Community Relationships; 66-67 major stakeholders. A corporate stakeholder mapping process is under development.

4.16 Approaches to stakeholder engagement. Community Perception Survey; 70 Stakeholder Satisfaction Survey.

4.17 Key topics and concerns that have been Customer Service; Staff concerns (of the 68 raised through stakeholder engagement, Enterprise Bargaining Agreement and Individual and how the organisation has responded Development Plan process) and Government to those key topics and concerns. concerns are confidential.

Recommended Indicators to Report on for “B” level : Need at least one social, environmental & economic indicator

EC1 Direct economic value generated and Financials – Statements and Notes. 121- distributed, including revenues, employee 165 compensation, donations, and other community investments, retained earnings, and payments to capital providers and governments.

EC2 Financial implications and other risks Partial Sustainability – Climate Change; 57

and opportunities for the organisation’s Significant Challenges and Opportunities. 22-23 Main Roads Annual Report 2011 activities due to climate change.

EC3 Coverage of the organisations defined Financials – Statements. 123- benefit plan obligations. 126

EC4 Significant financial assistance received Financials – Statements. 123- from government. 126

EC6 Policy, practices, and proportion of Partial Sustainable Procurement and Buy Local. 59 spending on locally-based suppliers at significant locations of operation.

171 Appendices

GRI Report No. Indicator Status Comments Page

EC9 Understanding and describing significant Partial State Development Program – Facilitating 33 indirect economic impacts, including the Economic and Regional Development. extent of impacts.

EN1 Materials used by weight or volume. Sustainability – Materials Extracted. 63

EN3 Direct energy consumption by primary Sustainability – Energy usage and 62 energy source. Greenhouse gas emissions.

EN4 Indirect energy consumption source. Partial Sustainability – Energy usage and 62 Greenhouse gas emissions.

EN6 Initiatives to provide energy-efficient Sustainability – Carbon Action Plan – 57, 61 or renewable energy based products Climate Change Adaption and Mitigation; and services, and reduction in energy Electric Vehicle Trial; Renewable Energy on requirements as a result of these initiatives. Roads Projects.

EN7 Initiatives to reduce indirect energy Intelligent Transport Systems Enhancing 52 consumption and reductions achieved. Perth’s Freeways.

EN16 Total direct and indirect greenhouse gas Sustainability – Energy usage and greenhouse 62 emissions by weight. gas emissions.

EN18 Initiatives to reduce greenhouse gas Partial Brown Out Trial, Renewable Energy on Road 61,57 emissions and reductions achieved. Projects, Carbon Action Plan.

LA1 Total workforce by employment type, Our Employees, Regional Employees. 74 employment contract and region.

LA2 Total number and rate of employee Partial Workforce Planning 76 turnover by age group, gender, and region

LA3 Benefits provided to full-time employees Benefits provided to full time employees are N/A that are not provided to temporary or part- the same benefits that are provided to part time employees, by major operations. time employees and employees on Fixed Term Contracts. Only Casual employees are exempt from these benefits.

LA4 Percentage of employees covered by 100% N/A collective bargaining agreements.

LA5 Minimum notice period (s) regarding All Main Roads Collective Bargaining N/A significant operational changes, Agreements contain a clause requiring for including whether it is specified in a replacement agreement to commence at collective agreements. least six months prior to the expiry of the agreement. In addition to this requirement, as a public sector agency, Main Roads is required by policy to commence the bargaining process at least 12 months prior to expiry of the agreements. All agreements contain a clause establishing a joint consultative committee comprising employer and union representatives. Main Roads has committed changes that are unlikely to affect existing practices the union and employees affected will be advised as early as possible and that unions and employees can contribute to the decision making process.

LA6 Percentage of total workforce represented 100% N/A in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs.

172 GRI Report No. Indicator Status Comments Page

LA7 Rates of injury, occupational diseases, lost Safety, Health and Well-being. 83 days, and absenteeism, and total number of work-related fatalities by region.

LA11 Programs for skills management and Our People – Workforce Planning; 76 lifelong learning that support the continued Developing Technical Capability. 77-78 employability of employees and assist them in managing career endings.

LA12 Percentage of employees receiving During the 2010–11 year, 77% of the eligible N/A regular performance and career workforce completed an annual Individual development reviews. Development Plan (IDP) with over a quarter of these also completing a 6 month review. This represents a 12% improvement from the previous period.

HR1 Percentage and total number of significant Main Roads’ corporate risk management N/A investment agreements that include human process does not recognise Human Rights as rights clauses or that have undergone significant risk to Main Roads none of Main human rights screening Roads’ contracts and agreements contain Human Rights clauses.

HR9 Total number of incidents of violations None; 60 involving rights of indigenous people and Social Performance – Aboriginal Heritage. actions taken

SO1 Nature, scope, and effectiveness of any Community Engagement; 67 programs and practices that assess Customer Service – Complaints Handling. 69 and manage the impacts of operations on communities.

SO8 Monetary value of significant fines and total None. N/A number of non-monetary sanctions for non-compliance with laws and regulations

PR1 Life cycle stages in which health and Health and safety impacts of roads provision N/A safety impacts of products and services is assessed at every life cycle phase: are assessed for improvement, and assess, select, develop, deliver, operate and percentage of significant products disposal.100% of MRWA roads provision and services categories subject to is subject to assessment based on MRWA such procedures. investigatory criteria.

PR5 Practices related to customer satisfaction, Community Perception survey; 70 including results of surveys measuring Stakeholder Satisfaction Survey. customer satisfaction.

PA1 Relationship to public authorities Legal Compliance; 100 and position within immediate Our Role; 3 governmental structures. Our Governance Model. 91

PA2 Definition of sustainable development and Sustainability – Sustainability Policy 57 Main Roads Annual Report 2011 principles adopted to guide sustainable and Strategy. development policies.

PA3 Aspects for which sustainable Sustainability – Leadership and 57 development policies have Corporate Policy. been established.

PA4 Identify the specific goals of the Partial Sustainability – Leadership and 57 organisation for each aspect listed in PA3. Corporate Policy.

PA5 Describe the process by which the aspects Partial Sustainability Performance Framework. 61 and goals in both PA3 and PA4 were set.

173 Appendices

GRI Report No. Indicator Status Comments Page

PA8 Gross expenditures broken down by type Financials – Notes 6 to 12. 141- of payment. 142

PA9 Gross expenditures broken down by Financials – Notes 6 to 12. 141- financial classification. 142

PA10 Capital expenditures by Financials – Notes 29 to 31. 150- financial classification. 151

PA11 Procurement policy relating Sustainability – Sustainability Framework for 59 to sustainability. Major projects, sustainable procurement.

PA12 Economic, environmental, and social Main Roads assess projects for funding N/A criteria that apply to expenditures and based on a project’s economic, financial commitments. environmental and social impacts. Projects are subject to Project Evaluation methodology that incorporates quantifiable economic data, supplemented by simplified economic, environmental and social assessments. This information is presented via Value for Money ratings and Project Business Cases

AE Describe the results of assessments Business Improvement Committee; 94 of the efficiency and effectiveness of Managing Director’s Message; 7 services provided. Governance Practices-Better Business, 96 Business Excellence; Summary of Key Performance Measures. 106

DMA Environmental Policy-Management Leadership and Corporate Policy 57 Approach Disclosure1 (Environment), Main Roads Environmental Policy Statement which can be found on our website*; Sustainability; (Environment management system, carbon reduction plan) Managing Director’s Message.

DMA Economic Management Approach Finance overview – Key Highlights; 18-19 Disclosure MRWA follows national Austroads project evaluation guidelines in preparing its annual asset investment plan. These guidelines stipulate that for each capital project a benefit cost ratio (BCR) must be conducted. The direct micro-economic impacts of individual projects are assessed. The BCR records information on the benefits of a project on travel time savings, vehicle operating costs and smoother travel. Indirect economic benefits are ascertained using a Austroads approved multi criteria analysis and looks at the indirect impacts of projects on economic, social, environmental and safety criteria; Governance; Index, Facilitating Economic and Regional Development.

DMA Strategic Asset Management – Main Roads Strategic Asset Management Plan N/A Management Approach Disclosure which is produced annually (against treasury guidelines which can be accessed on http://www.dtf.wa.gov.au/cms/content. aspx?id=1269&terms=strategic+asset +management+guidelines ) guides our economic management.

1 We have fully satisfied the DMA Environment aspects except for water, biodiversity, emissions, effluents and wastes which were partially met. * http://www.mainroads.wa.gov.au/UNDERSTANDINGROADS/ENVIRONMENT/Pages/policy.aspx

174 GRI Report No. Indicator Status

DMA Labour Practices – Management Approach Disclosure.

Main Roads’ Strategic Plan 2008—12 (2k12) sets the direction that enables Main Roads to provide safe and efficient road access that will enhance community lifestyles and promote economic prosperity. The “Creating Our Workforce of the Future” strategy expands on one of the key strategic areas of focus from 2k12 and sets the foundation for us to ensure the attraction and retention of the right people.

Our Employee Relations Branch is focused on constructive workplace relationships which contribute to the achievement of common goals such as safety, efficiency and productivity, quality customer service, job satisfaction and career opportunities.

This approach minimises industrial disputation and promotes innovative issue resolution. We achieve this through:

Promoting constructive workplace relationships between employees and management at the local level Recognising the role of unions in issue resolution at the local level Involving employees in decision making and promoting issue resolution at the local level Promoting ownership of organisational change initiatives Promoting collaborative and productive working relationships and teamwork Proactive, constructive and respectful dispute resolution of disputes through consultation, information sharing and negotiation Promoting flexible approach to consultation with unions and addressing issues as they arise Consultative arrangements at all levels of the business; and Facilitating and maintaining constructive relationships with key stakeholders including unions based on open and honest communications, professionalism, promotion of equity and diversity, participation in the consultative process and valuing different points of view with willingness to compromise when appropriate.

Safety, Health and Well-being

Competency Development, Careers and Training Expo

Our Equal Employment Opportunity Management plan alongside our policies and procedures ensures that we have a diverse workforce free from bullying, discrimination and harassment, and that barriers are removed for disadvantaged groups.

We have effective policies and procedures for alleged instances involving bullying, harassment or discrimination, all of which are treated seriously and confidentially. We enforce these policies and procedures so that we can attract and retain the diverse workforce we require for success, whilst providing equal opportunities for all employees. A Diversity Committee has been recently established and has identified priority areas which include: Main Roads Annual Report 2011 Improving representation of women in management Recruitment and support for Indigenous Australians Supporting families and work-life balance.

Our commitment as an organisation is to provide a workplace free of bias and discrimination, improve representation of diversity groups and supporting their development, developing our people to reach their full potential and being responsive to the different needs of a diverse community. We comply with Australian labour law under which child, forced and compulsory labour is disallowed.

175 Appendices

GRI Report No. Indicator Status

DMA Human Rights – Management Approach Disclosure2

Relationships with suppliers, Sustainable Procurement and Buy Local Disability Access and Inclusion Plan Our Equal Employment Opportunity Management plan alongside our policies and procedures ensures that we have a diverse workforce free from bullying, discrimination and harassment, and that barriers are removed for disadvantaged groups. We have effective policies and procedures for alleged instances involving bullying, harassment or discrimination, all of which are treated seriously and confidentially. We enforce these policies and procedures so that we can attract and retain the diverse workforce we require for success, whilst providing equal opportunities for all employees Enterprise Bargaining Agreement (EBA) Employees are free to join unions We comply with Australian labour law under which child, forced and compulsory labour is disallowed Main Roads WA complies with the State Records Act (2000) Aboriginal Heritage, Indigenous Road Safety.

2 We have fully satisfied the DMA HR aspects except for freedom of association and collective bargaining which was partially met.

GRI Report No. Indicator Status Comments Page

DMA Society – Management Approach The Government Goals; 22, Disclosure Enhancing Community Relationships – 66, Introduction; Sustainability – Environment 59, management system, Carbon Reduction Plan; 57, Governance Practices – Corruption Prevention; 97, Procurement Policies and Procedures, 102, Our Role. 3

DMA Product Responsibility – Management Road Safety – Introduction; 24 Approach Disclosure Main Roads does not produce products and services that require labelling; As Main Roads does not have power under its Act to earn revenue it has not developed Marketing Communications Policy; Main Roads WA complies with the State Records Act (2000); Third Party Certification; 84 Compliance with Public Sector Standards and Ethical Codes; 97 Integrated Management System; 99 Legal Compliance. 100

LT6 Description of policies and programs Road Management Program – Intelligent 52 implemented to manage the impacts of Transport Systems and Enhancing traffic congestion. Perth’s Freeways.

LT7 Description of policies and programs for Our objective is to minimise the impacts N/A noise management/abatement of noise associated with the road network, further information is available in our Public Environment Report which is available on our website.

LT8 Description of environmental impacts Sustainability – Performance Tracking and 61 major transportation infrastructure assets. Reporting-Environment.

LT12 Number of road fatalities Road Safety Program – Road Fatalities and 24 Hospitalisations.

176 Good Governance Guide Compliance Checklist

The Public Sector Standards Commission developed this Compliance Checklist to help public sector organisations assess and manage compliance with their requirements for accountability across Government. This Good Governance Guide was developed using the ASX Corporate Governance Council nine principles.

Operational element Page Status

Principle 1: Government and public sector relationship Organisation’s relationship with the government is clear

1.1 A document defines responsibilities and accountabilities between the chief executive officer 96 and the minister

1.2 Processes exist to manage communication and other interaction between ministers and other 90- parliamentary representatives and the organisation 102

1.3 Communication and other interaction are recorded and monitored 101

Principle 2: Management and oversight Organisation’s management and oversight are accountable and have clearly defined responsibilities

2.1 A document defines roles, responsibilities and accountability for all relevant levels of 90 management

2.2 Where boards and committees exist, the relationship between the parties must be clearly 93-94 defined

2.3 A strategic plan outlines the organisation’s key strategic goals and outcomes and outputs 2-3; 92

2.4 Operational plans and programs of work exist that define critical success factors and outline 22-55 how key strategic goals and outcomes will be accomplished at all levels of the organisation *

2.5 A delegation framework defines authority levels 100

2.6 Performance measures are defined and monitored for the organisation’s strategic goals 18-19, 106- 120

Principle 3: Organisational structure Organisation’s structure serves its purpose

3.1 Policies ensure that the organisation’s structure serves its key strategic goals and outcomes 92, 96

3.2 Processes exist to manage structural change and the relationships between business units 92, 96

3.3 Performance measures identify how well the structure delivers against strategic plans 18-19, Main Roads Annual Report 2011 106- 120

*More detail exists at Directorate and Branch level Business Plans.

177 Appendices

Operational element Page Status

Principle 4: Operations Organisation plans its operations to achieve its goals

4.1 Policies enable operations to deliver against the organisation’s key strategic goals 2-3, and outcomes 22, 92

4.2 The organisation’s operational plans and programs of work support the organisation’s 2-3, key strategic goals and outcomes and are regularly adjusted to changes in strategic and 22, 92 environmental imperatives

4.3 Infrastructure is in place to enable the organisation to implement its operational plans 3

4.4 A proper and adequate record is maintained of the performance of the organisation’s 106- operations as aligned with its key strategic goals and outcomes 120

4.5 Business process and outcome-specific key performance indicators track the organisation’s 106- performance against its strategic and operational plans 120

4.6 Performance evaluation and audits are conducted 106- 120, 121- 165, 98

Principle 5: Ethics and integrity Ethics and integrity are embedded in the organisation’s values and operations

5.1 The organisation’s values and code of conduct reflect the WA Code of Ethics and define the 2-3 standards of official conduct and professional behaviour expected of all employees 97

5.2 The organisation’s ethics and integrity risks are identified and policies and operational 95-97 processes address them (e.g. procurement, conflict of interest)

5.3 People management frameworks define the response to non-ethical behaviour 97

5.4 Processes are in place to provide supervision and assistance and enable follow up of 97 non-compliance (e.g. through public interest disclosure)

5.5 A structured process is in place to monitor official conduct and professional behaviour 2, 79, (e.g. compliance audit, performance management) 97

Principle 6: People Organisations leadership in people management contributes to individual and organisational achievements

6.1 Policies enable the attraction, retention and management of people 76

6.2 Plans ensure that processes, decisions and actions are based on the principles of fairness, 80, equity and diversity, and are consistent, transparent, impartial and open for review 176

6.3 People management frameworks cover the whole employment continuum 74

6.4 Structured procedures are in place to monitor adherence 97 to human resource policies and processes

6.5 Feedback processes identify issues in people management practices 79

178 Operational element Page Status

Principle 7: Finance Organisation safeguards financial integrity and accountability

7.1 Finance policies define the key strategic goals and outcomes for which the organisation’s 99 finances must be employed

7.2 A formal audit charter specifies roles and responsibilities, composition and structure of all 98 audit functions

7.3 Processes ensure the proper recording of financial transactions consistent with applicable 98-99 accounting standards

7.4 Financial operations contribute towards the organisation’s key strategic goals and outcomes 99 and uphold the highest level of integrity

7.5 Structured processes are in place to monitor and audit financial performance against budget 94, 98 and key strategic goals, both at executive level as well as by an independent audit committee

Principle 8: Communication Organisation communicates with all parties in a way that is accessible, open and responsive

8.1 Communication policies ensure the organisation’s communication is open, 66-73 accessible and responsive

8.2 Policies ensure information is disseminated through correct channels, in a timely manner and 66-73 to the right target group

8.3 Processes ensure proactive, transparent and responsive internal and external communication 66-73

8.4 Processes assist in complying with legislation on record keeping, public interest disclosure 90-102 and freedom of information, in safeguarding the confidentiality and integrity of information, and in preventing unauthorised, false or premature disclosure

8.5 An audit strategy exists to monitor compliance with communication policies and strategies 90-102

Principle 9: Risk management The organisation identifies and manages risk

9.1 Policies exist for the governance and management of material risks 98

9.2 The organisation’s risk exposure is evaluated and remediation plans are implemented 98

9.3 Preventive measures for key risk categories are in place 98

9.4 Procedures are in place to monitor incidents from the identified risk categories (data analysis) 98 Main Roads Annual Report 2011

179 Appendices

Road Industry Fact Summary Sheet

Road Industry Fact Summary WA Australia WA (%) Area (square km) 2,529,875 7,692,024 32.9 Population 2,296,411 22,342,398 10.3 Licensed drivers and riders1 1,540,270 N/A Vehicles on register including motor cycles 1,870,068 16,061,098 11.6 Annual vehicle kilometres travelled (100 million VKT)2 274.6 2,331.4 11.8 Road length excluding DEC roads (kilometres) 150,703 N/A

Fatalities (for calendar year 2010) 193 1,368 14.1 Fatalities/100 million VKT 0.7 0.6 Fatalities /100,000 persons 8.4 6.1 Fatalities/10,000 vehicles 1.0 0.9

Serious injuries (for calendar year 2010) 2,485 N/A Serious injuries/100 million VKT 9.1 Serious injuries /100,000 persons 108.2 Serious injuries/10,000 vehicles 13.3

1 Active licences only 2 Main Roads Estimates N/A: Not available DEC: Department of Environment and Conservation Sources Area ABS 2009–10 Year Book Australia (Cat. No. 1301.0) Population ABS Australian Demographic Statistics (Cat. No. 3101.0) – June 2010 Licensed Drivers DPI Licensing Centre – 30 June 2010 Vehicles on Register ABS Motor Vehicle Census (Cat. No. 9309.0) – 31 March 2010 Road Length Main Roads Corporate System (IRIS) – 30 June 2011 Fatalities Main Roads Crash System and BITRE Road Deaths Australia – 31 December 2010 Serious Injuries Main Roads Crash System – 31 December 2010

Sealed Unsealed Total Sealed Road Classification (as at 30 June 2011) (km) (km) (km) (%) National Land Transport Routes 5,101 0 5,101 100 State Highways 5,735 142 5,877 98 Main Roads 6,626 897 7,523 88 Sub-Total 17,462 1,039 18,501 94 Local Roads regularly maintained 37,058 91,365 128,423 29 Local Roads not regularly maintained 63 2,610 2,673 2 Sub-Total 37,121 93,975 131,096 28 Roads managed by DEC 358 36,503 36,861 1 Privately maintained Roads 150 956 1,106 14 Sub-Total 508 37,459 37,967 1 Total WA Road Network 55,091 132,473 187,564 29

Sources Main Roads Corporate System (IRIS) Department of Environment and Conservation

180 Statement of Expenditure Section 175Ze of the Electoral Act 1907

In accordance with Section 175ZE of the Electoral Act 1907, Main Roads Western Australia incurred $6,690,700 during 2010 – 11 in advertising, market research, polling, direct mail and media advertising. Expenditure was incurred in the following areas:

ADVERTISING AGENCIES $ POLLING ORGANISATIONS Nil

21cc Broadcast Productions 4,000.00 MEDIA ADVERTISING ORGANISATIONS $ 303 Group Pty Ltd 637,600.00 Adcorp Australia Ltd 370,700.00 Albany Advertiser Pty Ltd 5,300.00 Australian Association of Graduate Employers 1,600.00 Angry Chicken Publishing Pty Ltd 8,800.00 Blandon WA Pty Ltd 1,200.00 Collie Mail 500.00 Blue Heeler Trading 800.00 Community Spirit Newspaper Inc 200.00 Bonus Labels 1,100.00 Cybervale Pty Ltd 800.00 Business Promotions Australia 1,800.00 Executive Media Pty Ltd 900.00 Carolyn Walker Public Relation 600.00 Geraldton Newspapers Pty Ltd 200.00 Charleston Print 2,300.00 Halls Creek Herald 300.00 Colourbox Digital Pty Ltd 12,500.00 Kalgoorlie Boulder Chamber of Commerce Inc 700.00 Constable Care Child Safety Foundation Inc 200.00 Kalgoorlie Boulder Racing Club 700.00 Design Design Graphic 9,200.00 MacQuarie Southern Cross Media Pty Ltd 27,100.00 Dingo Promotional Products 6,400.00 North West Expo Inc 100.00 Discus Digital Print 1,000.00 Northern Territory News 400.00 Equilibrium 10,100.00 Pilbara Echo 200.00 Exibit Exhibitions & Publishing Pty Ltd 2,400.00 Rural Press Regional Media 1,500.00 Fresh Promotions Pty Ltd 700.00 The Muddy Waters 500.00 Goolarri Media Enterprises Pty Ltd 41,000.00 The Salvation Army 1,800.00 Haymarket Pty Ltd 5,000.00 WA Newspaper 8,900.00 Icon Illustration 800.00 Images on Paper Pty Ltd 3,500.00 Media Advertising Organisations Total 58,900.00 Imagesource Digital Solutions 1,100.00 Imatec Digital 8,700.00 DIRECT MAIL ORGANISATIONS Nil Kununurra Agricultural Society 100.00 Malcolm Heberle Quality Photography 300.00 Marketforce Ltd 768,900.00 Mary G Enterprises Pty Ltd 151,100.00 Mayflower Pty Ltd 9,900.00 Mitchell and Partners Australia Pty Ltd 105,200.00 Morph Media Pty Ltd 1,900.00

NRMA Ltd 2,100.00 Main Roads Annual Report 2011 Optimum Media Decisions Limited 4,376,200.00 Picton Press 17,200.00 Quality Press 4,400.00 Salmat 9,100.00 State Law Publisher 600.00 Tangelo Creative 59,900.00 WA Local Government As 600.00

Advertising Agencies Total 6,631,800.00

181 Appendices

Contracts Exceeding $1 Million

Contract number Contract description Award date Total Award Value Contractor 0322/09 Road reconstruction and widening, 11-Nov-10 5,880,153 Fulton Hogan Pty Ltd Albany – Lake Grace Road, Moingup Springs

0005/99-0366 Road reconstruction, Muirs Highway Stage 4B (work 15-Dec-10 1,100,151 Southern Roads Services completed under Integrated Services Arrangement)

0090/10 Panel Contract for hire of plant and equipment for 24-Feb-11 3,070,000 Various Fitzgerald River National Park

0287/09 Refurbishment of 13 Bridges, South West Region 07-Oct-10 1,135,728 Jonor Construction Pty Ltd

0006/99-0315 Widen, overlay and reconstruction of 27-Oct-10 2,882,396 Southern Roads Services Coalfields Highway (SLK 31.3 to 35.45) Upgrade Project Stage 1A

0326/09 Roadworks and lighting including South Western 10-Nov-10 2,450,925 Densford Civil Pty Ltd Highway Roundabout, Greenlands Rd – Stage 2

0006/99-0316 Intersection improvements and widen and seal, 03-Dec-10 2,919,984 Southern Roads Services – Manjimup to Pemberton Turnoff (SLK 286.24 to 293.40)

0006/99-0325 Widen and overlay, Coalfields Highway, 03-Dec-10 2,832,989 Southern Roads Services Allanson to BibblumunTrack (SLK 27.92 to 31.30)

0006/99-0322 Reconstruct, widen and seal Muirs Road – Perup 08-Dec-10 1,480,896 Southern Roads Services Stage 2B (SLK 38.86 to 40.76)

0353/09 Construction of Bridge over Blackwood River, 27-Jan-11 4,275,283 Bocol Constructions Pty Ltd Jalbarragup Road, Shire of Nannup

0002/99-0151 Construction of two passing lanes on North West 06-Aug-10 2,347,603 BGC Contracting Pty Ltd Coastal Highway between Burkett Road intersection & Yannarie River (SLK 735.18 to 737 & SLK 749.70 to 751.50)

0004/08-0008 Panel contract for hire of plant and equipment for 24-Aug-10 6,906,894 Various works on Carnarvon – Mullewa Road

0238/10 Supply and delivery of sealing aggregate – 14-Jun-11 1,302,227 HOLCIM (Australia) Pty Ltd Gascoyne Region

0085/10 Road Construction, Indian Ocean Drive 25-Feb-11 1,771,012 Carr Civil Contracting (Perth) (SLK 235.75 – 237.32)

0121/10-0001 Panel contract for hire of plant and equipment for 16-May-11 1,820,812 Various Gibb River Road Mt Barnett (SLK 310.00-337.85)

0344/09 Timber bridge refurbishment works on 4 bridges in 12-Nov-10 1,238,400 Densford Civil Pty Ltd the Wheatbelt South region

0345/09 Timber bridge refurbishment works on 5 bridges in 06-Dec-10 1,068,403 Structural Systems (Western) the Wheatbelt South region Pty Ltd (PERTH)

0240/09 Repair and refurbishment of various bridges 06-Oct-10 921,226 Regional Bridging Pty Ltd Wheatbelt North Region

0037/10 Refurbishment of 3 bridges in the 17-Feb-11 966,240 Densford Civil Pty Ltd Wheatbelt North Region

0002/99-0149 Upgrade Stovehill Road Intersection, Dampier 21-Jul-10 1,066,515 BGC Contracting (Pilbara) Highway (SLK 3.50 – 4.00) for Horizon Power

0002/99-0153 Widen Marble Bar Road (SLK 379.01 – 400.56) 30-Jul-10 2,002,594 BGC Construction Pty Ltd

0034/10 Spray Sealing Works – Marble Bar Road 11-Oct-10 946,642 Boral Asphalt (various sections SLK 17 – 89)

0283/09 Pavement rehabilitation works, Great Northern 10-Nov-10 2,373,455 Downer EDI Works Pty Ltd Highway and Ripon Hills Road

0026/08 “Integrated Services Agreement (Great Southern 02-Dec-10 262,000,000 Fulton Hogan Services & South West Regions) Provision of Operational Asset Management, Maintenance Delivery, Network Operations, Capital Works Delivery and Project Contract Management”

182 Contract number Contract description Award date Total Award Value Contractor 0023/08 “Integrated Services Agreement – Mid West & 31-Jan-11 226,000,000 Downer Mouchel JV Gascoyne Regions Provision of Operational Asset Management, Maintenance Delivery, Network Operations, Capital Works Delivery and Project Contract Management”

0025/08 “Integrated Services Agreement (Wheatbelt North & 22-Feb-11 191,000,000 Leighton Opus Team Wheatbelt South Regions) Provision of Operational Asset Management, Maintenance Delivery, Network Operations, Capital Works Delivery and Project Contract Management”

0021/08 “Integrated Services Arrangement – 10-May-11 152,000,000 Downer Mouchel JV Kimberley Region – Provision of Operational Asset Management, Maintenance Delivery, Network Operations, Capital Works Delivery and Project Contract Management”

0027/08 “Integrated Services Agreement – Metropolitan 341,000,000 Downer Mouchel JV Region Provision of Operational Asset Management, 05-Nov-10 Maintenance Delivery, Network Operations, Capital Works Delivery, Project Contract Management and Electrical Services”

0269/09 Panel Contract for the Provision of 29-Sep-10 1,320,000 Various Material Testing Services

0291/09 Panel Contract for the Provision of Engineering 15-Feb-11 3,495,000 Various Surveying and Mapping Services

0304/08 Dampier Highway Duplication (SLK 12- 24.3) 16-Jul-10 41,620,817 Highway Works Albem JV

0141/09 Perth Airport & Freight Access – 28-Jul-10 6,849,986 Gateway Vision Integrated Project Development Services

0212/09 Bridge Geotechnical Investigation, 16-Sep-10 1,196,420 Coffey Geotechnics Ord River Bridge, Kununurra

0101/09 Construction of interchange, Great Eastern Highway 21-Sep-10 74,084,805 Macmahon Contractors and Roe Highway Pty Ltd

0252/09 Highway upgrade, Great Eastern Highway, 01-Nov-10 173,400,000 City East Alliance Kooyong Rd – Tonkin Hwy

0079/10 Asphalt Works on Tonkin Hwy (H017) from 02-Feb-11 3,833,171 Downer EDI Works Pty Ltd Mills Rd to Thomas Rd

0069/10 Application of GRS and Asphalt on 09-Feb-11 3,842,750 Downer EDI Works Pty Ltd Roe Highway Stage 7

0051/10 Widening and upgrade, Kwinana Freeway, 07-Jun-11 62,000,000 Highway Construction Leach Hwy to Roe Hwy Pty Ltd Main Roads Annual Report 2011 0044/10 Project Management Services for Infrastructure 14-Jun-11 3,873,295 Various Delivery Directorate

0273/09 Construction of north & south bound overtaking 05-Oct-10 2,627,318 Densford Civil Pty Ltd lanes - Indian Ocean Drive

0008/99-2049 Intersection improvements, Morley Drive, 06-Oct-10 1,192,602 Downer EDI Works Pty Ltd McGilvray Avenue

0008/99-2050 Extension of Apple St. Road Train Assembly Area 06-Oct-10 976,485 Downer EDI Works Pty Ltd

0008/99-2051 Supply & Install Safety Barriers on Mitchell Freeway 26-Nov-10 1,448,039 Best Roads Group between SLK 8.00 & SLK 12.00

0031/09 Improvements – 19-Jan-11 3,646,020 Downer EDI Works Pty Ltd John Street To Leach Highway, Bentley

183 Appendices

Office of Road Safety Policy & Strategy Strategic Communications Business Services Director Director Strategic Relationships Government & External Relationships Community Engagement & Stakeholder Relationships Public Affairs Road User & Customer Services Director Director Planning Financial Budget & Project Project Programming Budget Management Program Management Director Director Executive John Taya Bob Phillips Rob Giles Iain Cameron Development Organisational Employee Relations Learning & Development Strategy & Projects Organisational Employee Development Occupational Safety & Health AIN ROADS M enneveld

H onzow Peter or Director Director Services Executive Finance & W Commercial Commercial enno Finance Services Property Management Supply & Transport Management Review & Audit Legal & Commercial Services Information Management Business Performance M

organ ANAGING DIRECTOR OF M M Director Director Services Technical Technical Executive Planning & Road & Traffic Road & Traffic Engineering Asset & Network Information Materials Engineering Structures Engineering Road Asset Planning Environment Business Management eo Coci Doug Delivery Director Director L Executive Infrastructure Infrastructure Infrastructure Infrastructure Delivery Services Major Projects Business Development

Road Director Director Network Services Executive Road Network Operation Management Road Safety Traffic Operations & Services Heavy Vehicle Operations Stakeholder Management Program Management Business Management n Director Director Services Regional Great Great Souther South W Gascoyne Mid W Goldfields – Esperance Kimberley Wheatbelt Sth Wheatbelt Nth Pilbara Metropolitan Executive est est John Erceg Des Snook Operational Asset Management Regional Operations Regions Our Organisational Structure

184 Publications List as at June 2011

*Annual Report (only available in electronic form) Free

*Customer Service Charter 2007 Free

Distance Book POA

*Engineering Road Notes

*No. 1 Bitumen Absorption by Sealing Aggregate 2003 Free

*No. 3 Surface “Blistering” and Soil “Fluffing” 2003 Free

*No. 7 Bitumen Scrap Rubber Seals 2003

*No. 8 Statistically Based Quality Control for Density in Road Construction. (Includes Asphalt Surfacing) 2008

*A Guide to Roadside Amenities and Rest Areas on Highways in Western Australia Free

Guidelines for Assessing Level of Service for Cycling. Revised 2006 Free

*Public Environment Reports 2003–2008

*Sharing the Road with Trucks: A Guide to Assist all Road Users to Drive Safely 2007 Free (only available in electronic form)

*SLK books (for all areas throughout State) Free

*Strategic Plan 2008-2012 (2k12) Free

*Traffic Controllers Handbook. 6th edition 2010 Free

*Traffic Management for Events 2010 (only available in electronic form) POA

*Traffic Management for Works on Roads – Code of Practice 2010 (only available in electronic form) Free

*Utility Providers’ Code of Practice for Western Australia 2008 Free

*Traffic Controllers Handbook. 6th edition 2010 Free

Vital Link: A History of Main Roads Western Australia 1926-1996, by Leigh Edmonds POA

Vital Link: The Transition Years of Main Roads Western Australia 1996-2006, by Leigh Edmonds Free

*Also available full text on Main Roads internet home page http://www.mainroads.wa.gov.au

All prices GST inclusive. Main Roads Annual Report 2011 Note: Main Roads Standards and Specifications are also available as full text on Main Roads internet home page.

185 Index

2k12 (Strategic Plan) 23, 70, 76, 91–93, 96, 175, 185. Corporate Executive About this Report, 5, 12–13, 16, 91–93, 95–96, 98–99, 102, 106, GRI table. About This Report Inside front cover, 168, 169. Corporate Governance 90, 93–94, 177, Glossary. Access Alliance 83. Corporate Safety, Health and 14, 95. Accreditation 53–54. Well-being Committee (Heavy Vehicles) Corruption Prevention 97, GRI table. Advisory Groups 68, 102, 171. Creating Our Workforce 2, 9, 92–93. Age profile 76. of the Future Alliance 8, 13, 34, 37, 47, 50, 60–61, 64, 71, Creating Our Workforce 74–76. 77, 83, 183. for the Future Applications 53–54, 75–76, 99. Customer Contact Centre 52, 69, 70, Glossary, Inside back cover. Austroads 12, 14–16, 66, 79, 171, 174. Customer Feedback 69, 94. Benefit Cost Ratio (BCR) 116, 174, Glossary. Customer Service 2–3, 7, 9, 12–13, 54, 66–69, 71, 81, 91, 107, GRI table, 184, 185, Glossary. Better Business 96, 174. Customer Service 68–69, 71, Glossary. Biodiversity 23, 63, 72, 174. Advisory Council Black Spot 8, 16, 20, 25, 27–28, 108, 110–111, Customer Service Charter 9, 68–69, 185. 143. Customer Service Index 9, 66, 69, Glossary. Black Spot Program 27, 111, 143. Cycleway 20, 43, 107–108, 110, 120. Borrowings 122, 124, 126, 128, 134, 152, 160. Cyclist 44. Budget Committee 13, 91, 94–95, 99. Delegation of Authority Manual 100. Business Excellence 96, 170, 174. Developing Capabilities 76–77. Business Improvement 69, 94–95, 174. Committee Development Employee 76–77. Programs Capital Works 10, 18, 23, 42, 102, 182–183. Director General’s Foreword 5–6. Carbon Emission 4, 23, 58, 61. Direct Managed Works 59, 65. Champions (sustainability) 58, 84. Disability Advisory Group 68. Committee 12–16, 48, 60, 65, 68–69, 80, 82, 84, 86, 91, 93–96, 99, 102, 169, Disability Access and inclusion 71, GRI table, Glossary. 171–172, 174–175, 177, 179. Plan (DAIP) Community About this Report, 2–5, 7, 9–13, 15, Economic Stimulus Package 27. 19–24, 28–29, 38, 43–44, 46–51, 55–57, 63, 65–68, 70–74, 77, 79, Efficiency (Road Efficiency) 5, 19, 21–23, 29–30, 51–52, 106, 109, 81–82, 85, 89, 91–92, 106–110, 113–115, 119, 165, GRI table. 112–113, 116–117, 120, 145–146, 154, 165, GRI table, 181, 184, Glossary. Emergency Telephone 117, 119. Community Access 5, 19, 20, 22, 43–44, 48, 106, 108, Employees 11, 16, 19, 36, 57–58, 61, 69, 120, 165, GRI table. 74–77, 79–81, 83–89, 92–93, 95–96, 99–101, 121, 123, 126, 134–136, 141, Community Perception Survey 9, 66, 70, 107, 113, 117, 120, GRI table. 146, 152–153, 159, 165, GRI table, 178, 184, Glossary. Community Satisfaction 4, 20–21, 24, 29, 38, 43, 51, 73, 107–110, 113, 117, 120. Enabling Legislation 91, 100. Competency Based Progression 81. Engagement 7, 13, 49–50, 66–68, 73, 84, 89, GRI, 184, Glossary. Complaints Handling 69, GRI table. Enhancing Community 5, 66, GRI table. Compliance (Heavy Vehicles) 53–54. Relationships Compliance (Legislative) 1, 61–62, 90–91, 93–94, 97–103, Environment 4, 7–8, 14, 16, 22–25, 36–37, 52, 135, GRI table, Good Governance Guide 56–57, 59–60, 62–65, 68, 72, 77, 84, Compliance Checklist, Glossary. 87, 89, 92, 96–97, 99, 106, 110, 119, 157, GRI, 178, 180, 184–185, Glossary. Conflict of Interest 95, Good Governance Guide Compliance Checklist. Environmental Advisory Group 68. Contact Centre 52, 69–70, Glossary, Inside Back Cover. Environmental Management 8, 59, 99. System Contents 5, 121, 166. Equity 19, 80, 121–122, 124–125, 128, Contracts Exceeding $1 Million 166, GRI table, 182. 145–146, 154, 162, GRI table, 178. Corporate Business Plan 93–94, 96. Ethical and Responsible 96. Corporate Development 16, 93, 95. Decision Making Committee 186 Ethical Codes 97, GRI table. Kimberley 3, 7, 15, 34, 39, 41, 44, 53, 74, 120, 151, 183–184, Inside Back Cover. Fact Summary (Road facts) 166, 180. Knowledge Management 76. Family Day 80–81. Kwinana Freeway Extension 8, 35. Fatal Crash Investigations 53. Lancelin–Cervantes 4, 8, 35–36, 65, 73, 83, 144. Fatalities 24, 87, GRI table, 180. Leadership 2, 12–13, 15, 47–48, 57, 61, 75, 77, Feedback 1, 58, 69–70, 73, 84, 94, 178. 79, 81, 84, 86, 89, 91–93, 106, GRI table, 178. Financial Management 1, 93, 96, 99, 103, 127. Leadership Team 12, 106. Financial Statements 5, 19, 102–103, 121, 127–128, 130, 132, 134, 136–140, 142, 144, 146, Legislation 49, 62, 91, 9, 100, 179. 148, 150, 152, 154, 156–158, 160, 162, 164, GRI table. Licensed Drivers 180. Fines 55, 121, 123, 126, 142, 159, 165, Local Government 3, 4, 11, 16, 18–19, 23, 41–42, 44–45, GRI table. 47, 50, 60, 65, 94, 113, 118, 130, 142, 143–144, 159, 181, Glossary. Fleet 62. Lost Time Injury (LTI) 37, 8, 86–87. Freedom of Information 99, 179. Maintenance 5, 8, 15, 19, 21, 22, 32, 38–42, 53, Freeway Performance 29. 59–60, 68, 70, 78, 82, 86, 94, 98, 102, 106–107, 109, 117–120, 141, 147, Freight 10, 14, 30–32, 92, 113, 183. 156, 165, GRI table, 182–183, Glossary. Funding About this Report, 18, 27, 45, 48–49, Main Roads and the Community 22. 70, 82, 94, 111, 126, 133, 143, 157, GRI table, Making Roads Work 2, 92. for the Community Gascoyne 3, 7, 15, 25, 30, 39, 41–42, 44–45, 53, 74, 120, 120, 182–184, Materials Engineering 14, 86, 184, Inside back cover. Inside back cover. Mentoring 77, 93. Global Reporting Initiative (GRI) About this Report, 56, 61, 166, GRI table. Middle Manager Development 93. Program Goldfields–Esperance 3, 15, 25, 30, 39, 58, 72, 120, Inside back cover. Mid West 3–4, 8, 15, 26, 40, 42, 74, 183–184, Inside back cover. Government Goals 5, 19, 22, 106, GRI table. Ministerial Directives 100. Government Stakeholders 2. Nation Building 19, 27, 31, 143. Great Northern Highway 8, 10, 27, 30, 39, 41, 44, 144, 182. New Perth Bunbury Highway 25, 34, 116. Great Southern 3, 15, 25, 30, 39, 44, 56, 74, 182, 184, Inside back cover. Occupational Safety and Health 84. (OSH) Head Office Inside back cover. Office of Road Safety (ORS) 5, 17, 19–20, 22, 46–47, 50, 100, 106, Health and Lifestyle Program 85. 108, 112, 142, 144, 165, GRI table, Glossary, Inside back cover. Heavy vehicles 21, 41, 54, 109, 113, 145. Organisational Structure 166, GRI table, 172, 184. Highlights 4, 18, 50, 70, 99, GRI table. OSHtoberfest 84. Hospitalisations 24, GRI table. Our Role 3. Human Resources 16.

Outcome Based Management 22. Main Roads Annual Report 2011 Incident Management 8, 41–42, 52–53, 55, 70. Pedestrian 20, 26, 30, 43–44, 68, 107–108, 110, Injury Management 83, 88. 120. Innovation 11, 13, 34, 60, 79, 81, 91, Glossary. Pedestrian Facilities 20, 26, 43, 107–108, 110, 120. Integrated Management System 94, 99, GRI table. People About this report, 5, 7–11, 16, 22–23, Integrated Service Arrangements 8, 12, 23, 41, Acronyms 28–29, 47, 49–51, 53, 56, 59–60, (ISAs) 69, 71, 74, 76–77, 83–85, 89, 92, 106–107, 113, GRI table, 178, Glossary. Intelligent Transport Systems 52. (ITS) Phased Retirement 12, 81. Internal Audit 98 Pilbara 3, 7, 15, 26, 31, 35, 50, 74, 120, 181–182, 184, Inside back cover. Internal Controls 98. Population 3, 23, 107, 180. Key Performance Indicators 20, 24, 29, 33, 38, 43, 46, 51, 56, 66, 75, 83, 103, 178. Positions Advertised 75–76.

187 Preventative Health 85. State Development 5, 19–20, 22, 33–34, 106, 109, 116, 165, GRI table. Pricing Policies of 102. Services Provided State Road Funds to Local 16, 68. Government Advisory Committee Principal Shared Paths About this report, 129, 150. State Road Funds to Local 16. Procurement 13, 59, 102, GRI table, 178. Government Agreement Property Management 13, 59, 184. Statement of Expenditure 166, 181. Providing the Right Roads for 2. Statutory Audit 98. Western Australia Strategic Plan 16, 23, 76, 90, 92–9, 96, GRI table, Public Environment Report 57, GRI table, 185, Glossary. 177, 185. Public Sector Standards 90, 97, GRI table, 176–177. Strategic Relationships Group 67, Acronyms. Publications 1, 166, 185. Sustainability About this report, 5, 7–8, 56–61, 63, 83, 89, 94, GRI table, Glossary. Purpose 2, 84, 91–92, 122, 127, 132–133, 135, 138, 145–146, 157, 164, 172, 177. Sustainability framework 7, 8, 59, 61, GRI table. Record Keeping 101, 179. Sustainable September 58. Relationships 2–3, 5, 9, 11, 13, 16, 64, 66–68, 70, Technical Capability 93, GRI table. 73, 81, 84, 92–93, 96, 102, GRI table, 184, Glossary. Towards Zero 47–48, 50, 53. Relationships with Suppliers 102, GRI table. Traffic Management 28, 30, 41, 53–55, 68–70, 86, 185. Restricted Access Vehicle 54, Acronyms. Traffic Management for Events 68. System (RAVS) Advisory Group Road Industry Fact Summary 166. 180. Traffic Operations Centre 52, 55. Road Length 118, 180. Traffic Signal 21, 26, 38, 52, 69, 100, 109, 117, 119, 144. Road Lighting 21, 109, 117, 119. TRIM 101. Road Management 5, 19, 21–22, 51–52, 106, 164, GRI table. Values 2–3, 7, 57, 69, 76, 79, 81, 90, 93, 96, 115, 127, 129–130, 148, 150, 157, Road Safety 5, 15, 17, 19–20, 22–25, 32, 46–50, GRI table, 178. 53–54, 71, 82, 100, 106, 108, 110–113, 142, 144, 164–165, GRI Vehicle Detection Stations 52. table, 184, Glossary, Inside back cover. Vehicles on Register 180. Road Safety Support Services 53. Vision (statement) 2, 92. ROADS Foundation 8, 12, 16, 60, GRI table. Website 1, 31, 41, 47, 50, 52–53, 57, 59–61, Roadside Stopping Places 30. 69–71, 73, 94, 99, 102, GRI table, Inside back cover. Safety and Well-being 9. Western Australian Local 47, 68, Acronyms. Safety, Health and Well-being 5, 14, 83–84, 95, GRI table. Government Association (WALGA) Sanctions 62, 96 and GRI table. Western Australian Road 68, 102. Satisfaction 4, 9, 20–21, 24, 29, 38, 43, 51, 66, Construction and Maintenance 70, 73, 77, 107–110, 113, 117, 120, Industry Advisory Group GRI table. Women in Leadership 75. Serious Injuries 47, 48, 50, 87, 180. Wheatbelt North 3, 15, 26, 35, 40, 74, 120, 182–183, Smooth Travel 21, 38, 109, 117. Inside back cover. South West 3, 7, 15, 26, 31, 35, 40, 47, 50, 68, 74, Wheatbelt South 3, 15, 26, 40, 74, 182–183, 130, 182, 184, Inside Back Cover. Inside back cover. Southern Gateway Alliance 13, 37, 64. Workers’ Compensation 88, 136, 153. Stakeholder About this report, 2, 9, 13, 15, 17, 23, Workforce Statistics 74. 48, 55, 60, 65–68, 70–71, 73, 92–93, 106, GRI table, 184, Glossary. WorkSafe 9, 83–84, 89. Stakeholder Satisfaction Survey 9, 66, 70, GRI table.

188 Glossary

WORD DEFINITION Bitumen A viscous liquid or solid impure mixture, consisting essentially of hydrocarbons and their derivatives, used for road surfacing. It has waterproofing and adhesive qualities. Bypass An alternative route that enables through-traffic to avoid urban areas Carriageway The portion of a road or bridge devoted particularly to the use of vehicles, inclusive of shoulders and auxiliary lanes. Channelisation A system of controlling traffic by the introduction of an island or islands or markings on a carriageway to direct traffic into predetermined paths, usually at an intersection or junction. Community Engagement Involving communities in the prioritisation and development of services in their own area. Community Engagement includes Community Consultation, but also goes beyond this, to include the more active processes in which communities play a greater role in actually formulating plans or influencing local developments. Corporate Governance The way Main Roads balances compliance against risk-taking as it directs, controls and is held accountable for its business performance Culvert One or more adjacent pipes or enclosed channels for conveying a stream below formation level and carrying water under a roadway. Drainage The removal of water by flow from the ground or from its surface Floodway A longitudinal section or road designed at, or just above, ground level specially constructed to allow the passage of floodwater across it without damage. Freeway A divided Highway for through-traffic with no access for traffic between interchanges and with grade separation at all intersections. Highway Highways provide connection between capital cities. They are also principal routes between a city and the major producing regions of the State. Highways also service major transport terminals or significant commercial and industrial centres. IAP2 The International Association for Public Participation – a non-profit organisation established to advance the practice of public participation world wide. Individual Development Plan Supports the ongoing learning and development of employees and provides a framework for performance management. Incidence rate The number of LTI/Ds divided by the number of employees * 100. Main Road A principal road in the road system. Maintenance The work carried out on an existing road and infrastructure to maintain its efficiency or quality. Median A strip of road that separates carriageways for traffic in opposite directions. Overlay The addition of one or more courses of pavements material to an existing road surface, generally to increase strength, and/or to improve ride quality. Overtaking/Passing Lane An auxiliary lane provided for slower vehicles to allow them to be overtaken. Pavement That portion of a carriageway placed above the levelled surface or earth or rock for the support of, and to form a running surface for, vehicular traffic. Performance Indicator A simple measure that allows objective comparisons to be made. An example is road maintenance costs per kilometre in a region This can be compared to other regions and monitored over time. Main Roads Annual Report 2011 Realignment A change in the geometric form of the original centre-line of a carriageway with respect to the vertical and horizontal axes. Reconstruction Rebuilding of a road. Reconstruction is normally undertaken when a pavement has reached the end of its economic life and where the alignment, or formation height, or width is substandard. Seal A thin surface layer of sprayed bitumen. Stakeholder A person or group of people with a direct interest, involvement, or investment in something. Strategy This how a broad objective will be approached. An example is Main Roads’ contracting strategy. It specifies the, mix of contract types that will deliver the best outcome for the community. Severity Rate The number of LTI/Ds that resulted in 60 days or more lost divided by the total number of LTI/Ds *100. Sustainability The long-term balance of social, environmental and economic factors into an organisation’s activities, decision-making and investment processes. Term Network Contract A contract to deliver a set of given services for a defined period.

189 Acronyms

WORD DEFINITION

ABGR Australian Building and Greenhouse Rating System

ANCAP Australian New Car Assessment Program

AGIC Australian Green Infrastructure Council

BCR Benefit Cost Ratio

CCC Customer Contact Centre

COAG Council of Australian Governments

CEIID Centre of Excellence and Innovation in Infrastructure Delivery

CMARC Curtin-Monash Accident Research Centre

CSAC Customer Service Advisory Council

CSI Customer Service Index

D and C Design and Construct

DAIP Disability Access and Inclusion Plan

DCT Direct Cost Target

EBA Enterprise Bargaining Agreement

EMS Environment Management System

GRI Global Reporting Index

HVO Heavy Vehicle Operations

IDP Individual Development Plan

ISA Integrated Services Arrangements

ITS Intelligent Transport System

KPI Key Performance Indicator

LIDAR Light Detection and Ranging System

LTI Lost Time Injury

MER Mandurah Entrance Road

OPSSC Office of the Public Sector Standards Commissioner

ORS Office of Road Safety

OSH Occupational Health and Safety

PER Public Environment Report

RAVS Restricted Access Vehicle System

RO&DS Recognising Opportunities and Delivering Solutions

SRG Strategic Relationships Group

TCIC Traffic Control Infrastructure Contract

TNC Term Network Contractor

UWA University of Western Australia

WALGA Western Australian Local Government Association

190 Contacts

24 hr Customer Contact Centre: 138 138 Website: www.mainroads.wa.gov.au Hearing Impaired TTY: 133 677

Metropolitan Offices Regional Offices

Head Office Gascoyne Don Aitken Centre, Waterloo Crescent, 470 Robinson Street, Carnarvon, 6701 East Perth, WA 6004 (08) 9941 0777 PO Box 6202, East Perth, WA 6892 [email protected] Goldfields–Esperance 83 Piesse Street, Boulder, 6432 The Office of Road Safety (ORS) (08) 9080 1400 Level 10, 40 St Georges Terrace Perth, WA 6000 Great Southern [email protected] 2-6 Kelly Street, Albany, 6331 (08) 9892 0555 24 hr Public Affairs/Media Enquiries: 0419 907 230 Kimberley Wodehouse Street, Derby, 6728 Materials Engineering (08) 9158 4333 5–9 Colin Jamieson Drive, Welshpool, 6106 (08) 9350 1444 Mid West Eastward Road, Geraldton, 6531 (08) 9956 1200 Heavy Vehicle Permits (Extra Mass or Oversize Loads) Pilbara 70 Pilbara Street, Welshpool, 6106 Brand Street, South Hedland, 6722 [email protected] (08) 9172 8877 (08) 9311 8450 South West , Bunbury, 6231 Main Roads Annual Report 2011 Report Road Hazards (08) 9725 5677 (24 hr free call except from mobile phones) 1800 800 009 Wheatbelt North Peel Terrace, Northam, 6401 Road Condition Reports (08) 9622 4777 (24 hr free call except from mobile phones) 1800 013 314 Wheatbelt South Mokine Road, Narrogin, 6312 (08) 9881 0566

191 Main Roads Western Australia

Don Aitken Centre, Waterloo Crescent East Perth, Western Australia 6004

telephone 138 138 facsimile 08 9323 4430 tty 08 9311 8430 email [email protected]

www.mainroads.wa.gov.au