2009-10 Budget Paper No 2 Volume 1

PARLIAMENT OF TASMANIA

Budget Paper No 2 Government Services Volume 1

Presented by the Honourable Michael Aird MLC, Treasurer, for the information of Honourable Members, on the occasion of the Budget, 2009-10

Useful 2009-10 Budget and Government Web sites www.budget.tas.gov.au Contains the Budget Papers. www.treasury.tas.gov.au Provides other Budget and financial publications. www.media.tas.gov.au Contains the Government's Budget related media releases. www.tas.gov.au Provides links to the Web sites of a wide range of Tasmanian public and private sector organisations. www.service.tas.gov.au Provides a comprehensive entry point to Government services in Tasmania. www.tasmaniatogether.tas.gov.au Provides detailed information on Tasmania Together, including the current status of this important initiative.

CONTENTS

VOLUME 1

1 Introduction

PART 1: DEPARTMENTS

2 Department of Economic Development, Tourism and the Arts

3 Department of Education

4 Finance-General

5 Department of Health and Human Services

6 Department of Infrastructure, Energy and Resources

7 Department of Justice

VOLUME 2

PART 1: DEPARTMENTS (CONTINUED)

8 Ministerial and Parliamentary Support

9 Department of Police and Emergency Management

10 Department of Premier and Cabinet

11 Department of Primary Industries, Parks, Water and Environment

12 Department of Treasury and Finance

PART 2: AGENCIES

13 House of Assembly

14 Legislative Council

15 Legislature-General

16 Office of the Governor

17 Office of the Ombudsman

i 18 Tasmanian Audit Office

PART 3: STATUTORY AUTHORITIES

19 Inland Fisheries Service

20 Marine and Safety Tasmania

21 The Nominal Insurer

22 Royal Tasmanian Botanical Gardens

23 State Fire Commission

24 The Tasmanian Academy, Polytechnic and Skills Institute

PART 4: APPENDIX

Appendix 1 Consolidated Fund Estimates

ii INDEX

VOLUME 1

PART 1: DEPARTMENTS

1 Introduction 1.1

Overview 1.2

Budget Management Strategies 1.3

Structure of Budget Paper No 2 Government Services 1.7

Current Ministerial Portfolio and Departmental Structure 1.9

Further Information on Budget Paper No 2 1.13

2 Department of Economic Development, Tourism and the Arts 2.1

Agency Outline 2.1

Major Initiatives 2.2

Other Initiatives and Strategies 2.3

Output Information 2.6

Output Group Restructure 2.6

Output Group Expense Summary 2.7

Output Group 1: Economic Development 2.9

Output Group 2: Sport and Recreation 2.12

Output Group 3: Tourism 2.13

Output Group 4: Arts 2.16

Special Capital Investment Funds 2.18

Detailed Budget Statements 2.20

3 Department of Education 3.1

Agency Outline 3.1

Major Initiatives 3.3

Output Information 3.9

Output Group Restructure 3.9

iii Output Group Expense Summary 3.10

Output Group 1: Pre-Compulsory and Compulsory Education 3.12

Output Group 2: Post-Compulsory Education and Skills Development 3.16

Output Group 3: Community Knowledge Network 3.19

Capital Investment Program 3.21

Detailed Budget Statements 3.24

4 Finance-General 4.1

Agency Outline 4.1

Output Information 4.1

Output Group 1: Debt Servicing and Management 4.3

Output Group 2: Employee Related Costs 4.5

Output Group 3: Government Businesses 4.8

Output Group 4: Miscellaneous 4.10

Special Capital Investment Funds 4.15

Detailed Budget Statements 4.25

5 Department of Health And Human Services 5.1

Agency Outline 5.1

Major Initiatives 5.2

Output Information 5.8

Output Group 1: Acute Health Services 5.10

Output Group 2: Community Health Services 5.15

Output Group 3: Human Services 5.20

Output Group 4: Independent Children's Review Services 5.25

Special Capital Investment Funds 5.26

Capital Investment Program 5.29

Detailed Budget Statements 5.32

6 Department of Infrastructure, Energy and Resources 6.1

Agency Outline 6.1

Major Initiatives 6.2

iv Output Information 6.4

Output Group 1: Infrastructure 6.8

Output Group 2: Energy Advisory and Regulatory Services 6.12

Output Group 3: Mineral Resources Management and Administration 6.14

Output Group 4: Support for the Minister for Energy and Resources 6.16

Output Group 5: Racing Policy and Regulation 6.18

Output Group 6: Transport Subsidies and Concessions 6.20

Special Capital Investment Funds 6.22

Capital Investment Program 6.24

Detailed Budget Statements 6.27

7 Department of Justice 7.1

Agency Outline 7.1

Output Information 7.4

Output Group 1: Administration of Justice 7.8

Output Group 2: Legal Services 7.12

Output Group 3: Registration Services 7.14

Output Group 4: Review Services 7.15

Output Group 5: Electoral Services 7.17

Output Group 6: Corrective Services 7.19

Output Group 7: Other Services 7.21

Output Group 8: Consumer Services 7.22

Output Group 9: Industrial Relations Services 7.23

Output Group 10: Resource Planning 7.25

Output Group 11: Workplace Services 7.27

Special Capital Investment Funds 7.29

Capital Investment Program 7.30

Detailed Budget Statements 7.31

PART 1: DEPARTMENTS

1 INTRODUCTION

Features

• Budget Paper No 2 Government Services provides information about the Outputs (goods and services) the Government will deliver in 2009-10 and over the Forward Estimate period (2010-11 to 2012-13).

• Budget Paper No 2 provides detailed financial and non-financial information for Government departments, agencies and General Government Sector statutory authorities in support of the Consolidated Fund Appropriation Bills, and the Government's initiatives as outlined in the Treasurer's Budget Speech.

• The agency Budget information included in Budget Paper No 2 reflects the impact of the Government's Budget Management Strategies, which are being implemented by the Government in response to the impact of the Global Financial Crisis on the State's financial position.

Introduction 1.1 OVERVIEW

Budget Paper No 2 Government Services provides information about the Outputs (goods and services) the Government will deliver in 2009-10 and over the Forward Estimate period (2010-11 to 2012-13). Budget Paper No 2 is a major source of financial and non-financial information on the operations of government departments, agencies and General Government Sector statutory authorities. The other major source of information on these entities is the annual report required to be published by every entity.

The following points should be noted when reading Budget Paper No 2:

• Information is provided in accordance with Australian Accounting Standards and includes details of the actions being taken by each entity to implement the Government's initiatives.

• Information provided reflects the impact of recent changes to the structure of, or Ministerial responsibility for, a number of departments, as detailed in the Administrative Arrangements Order 2009 and the State Service (Restructuring) Order (No 2) 2008.

• Ministerial responsibility for departments is assigned under the provisions of the Administrative Arrangements Order 2009, issued in accordance with section 4(1) of the Administrative Arrangements Act 1990. The Ministerial responsibilities detailed in the Order are illustrated in Chart 1.2.

• The departmental structure also reflects the departmental restructure announced by the Premier, David Bartlett MP, on 14 May 2009. The Premier announced with effect from 1 July 2009, that the Department of Environment, Parks, Heritage and the Arts will be amalgamated with the Department of Primary Industries and Water, and the Department of Economic Development and Tourism.

• The new Department of Primary Industries, Parks, Water and Environment is largely an amalgamation of the Department of Primary Industries and Water, and the former Department of Environment, Parks, Heritage and the Arts. However, responsibility for the Arts has been transferred to the Department of Economic Development and Tourism to form the new Department of Economic Development, Tourism and the Arts.

• The agency Budget information included in Budget Paper No 2 reflects the impact of the Government's Budget Management Strategies, which have been implemented by departments in response to the impact of the Global Financial Crisis on the State's financial position. An overview of the Government's Budget Management Strategies is provided in this chapter.

1.2 Introduction BUDGET MANAGEMENT STRATEGIES

The Government has required agencies to implement a range of Budget Management Strategies in response to the Global Financial Crisis to ensure the State's Budget is managed on a sustainable basis. These strategies impact the 2009-10 Budget and Forward Estimates.

The Budget Management Strategies include:

Employment Management Strategies

The Government's Employment Management Strategies include an agency cost reduction requirement; a review of middle management; and a reduction in the Senior Executive Service.

Agency Cost Reduction Requirement

The Agency Cost Reduction Requirement (ACCR) will achieve a Budget saving of $16.5 million in 2009-10, increasing to $39.6 million in 2010-11 and thereafter.

The ACCR savings target will be achieved through the implementation of a range of employment management strategies including vacancy control, early or phased-in retirement, leave without pay and targeted voluntary redundancies.

To assist agencies in achieving the Agency Cost Reduction Requirement target, a $13.5 million provision will be established in the Special Deposits and Trust Fund and administered through Finance-General. Agencies may apply to use funds from the provision to manage the initial cost implications of its employment management strategies. Agencies using funds from the Agency Cost Reduction Requirement provision will be required to repay these funds from savings the agency achieves through its employment management strategies.

Middle Management Review

A review of agency middle management will be undertaken by all agencies. A middle management savings target has been allocated to each agency based on the total number of FTEs employed by it under the provisions of the State Service Act 2000, excluding police officers. It is anticipated the review of middle management will achieve whole-of-government savings of $13.2 million in 2009-10, increasing to $17.5 million in 2010-11 and thereafter.

Senior Executive Service Reduction

Tasmania's Senior Executive Service will be reduced by 25 positions. Each agency has been set an SES reduction target and their Budget and Forward Estimates reduced by the level of savings expected to be achieved. It is anticipated the Reductions in Senior Executive Service will achieve whole-of-government savings of $5.0 million per annum.

Amalgamation Efficiencies

A departmental restructure was announced by the Premier, David Bartlett MP, on 14 May 2009. The Premier announced with effect from 1 July 2009, that the Department of Environment, Parks, Heritage and the Arts will be amalgamated with the Department of Primary Industries and Water, and the Department of Economic Development and Tourism. The amalgamation efficiencies will achieve savings of $2.15 million in 2009-10, increasing to $4.3 million in 2010-11 and thereafter.

Introduction 1.3 Boards and Committees Saving

A review of boards and committees will be undertaken during 2009-10 to identify efficiencies which could be achieved through changes to the size and composition of boards, the amalgamation of some activities into single boards or the abolition of boards whose activities could be managed through other means. It is anticipated this Budget Management Strategy will realise savings of $500 000 in 2009-10, increasing to $1 million a year from 2010-11.

Efficiency Dividends

An efficiency dividend has been applied to agency allocations for the 2009-10 Budget and Forward Estimates. The application of an efficiency dividend was previously announced in the 2008-09 Mid-Year Financial Report (Preliminary) on 15 December 2008.

The efficiency dividend applies to all departments. However, the front line services of schools, hospitals, and policing have been quarantined from the impact of the efficiency dividend. The House of Assembly, the Legislative Council, Legislature-General, the Director of Public Prosecutions, the Office of the Ombudsman and the Tasmanian Audit Office are also exempt from the application of the efficiency dividend.

The efficiency dividends will achieve savings of $61.4 million in 2009-10, increasing to $85.4 million by 2011-12.

Non-Salary Indexation

No indexation for general operating expenses has been provided in 2009-10 and over the Forward Estimates. Funding provided to the Department of Health and Human Services for medical and pharmaceutical supplies and grants will continue to be indexed at a rate of 4.0 per cent per annum.

Public Sector Wage Restraint

The Government will implement a Wage Restraint policy that reflects the current economic and financial environment, whilst also ensuring the Budget is managed on a sustainable basis. The Government's Wage Restraint policy is based on the following principles:

• the Government will honour all current wage agreements;

• there will be no nexus arrangements beyond the term of current agreements;

• wage increases agreed in future agreements will commence from 1 December in each year; and

• as agreements expire, new wage and salary agreements will be negotiated on the basis that funding, no greater than 1 per cent per annum in 2009-10 and 2010-11; and 2.5 per cent in 2011-12 and 2012-13, is provided to agencies.

It is estimated that the Government's Wage Restraint policy will achieve savings of $15.9 million in 2010-11, increasing to $51.3 million in 2012-13.

Whole-of-Government Non-Salary Savings Targets

On 22 April 2008, the Premier, David Bartlett MP, and the Treasurer, Hon Michael Aird MLC, announced the implementation of a number of whole-of-government non-salary savings targets. The targets are:

• a 30 per cent cut in the Government's travel costs;

1.4 Introduction • a 30 per cent cut in advertising;

• a 10 per cent cut to the Government's car fleet;

• a 20 per cent reduction in mobile phones costs; and

• a 25 per cent saving in the Members of Parliament Resource Allowance.

It is estimated the whole-of-government non-salary targets will achieve savings of approximately $34.3 million over the 2009-10 Budget and Forward Estimates period.

The total savings achieved from the Budget Management Strategies are detailed in Table 1.1.

Table 1.1: Budget Management Strategy Savings 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000)

Employment Management Strategies Agency Cost Reduction Requirement 16 500 39 600 39 600 39 600 Middle Management Review 13 161 17 544 17 544 17 544 Senior Executive Service (SES) Reduction 5 000 5 000 5 000 5 000 Amalgamation Efficiencies 2 150 4 300 4 300 4 300 Boards and Committees Saving 500 1 000 1 000 1 000 Efficiency Dividends 61 362 76 201 85 429 85 429 Non-Salary Indexation 7 818 15 822 23 937 31 495 Public Sector Wage Restraint .... 15 924 31 892 51 274 Whole-of-Government Non-Salary Savings Targets Advertising 2 680 2 256 1 877 1 682 Members of Parliament Resource Allowance 100 100 100 100 Mobile Phones 871 818 807 795 Travel and Vehicle Fleet 6 400 5 703 5 237 4 769

TOTAL 116 542 184 268 216 723 242 988

Introduction 1.5 Additional Budget Management Strategy Actions

To assist agencies in meeting the Budget Management Strategy saving targets, the Government will implement the following actions:

Executive Vehicles

The Government has reviewed its policy in relation to the provision of vehicles for senior public service executives. Following the review, only a range of non-prestige vehicles will be available as part of the overall remuneration package provided to executives. However, some executives will have the option of paying an additional cost if they choose to opt for a higher priced or prestige model.

MP Salary and Parliamentary Allowances Freeze

A freeze will be applied to all Parliamentarian salaries and allowances in 2009-10. It is estimated this freeze will achieve savings of approximately $200 000 per annum. Legislative change will be required to implement this Budget Management Strategy. Given the need to change legislation, the savings are not reflected in the 2009-10 Budget and Forward Estimates at this time. The saving will be recognised following the change to the relevant legislation.

Premier's Entertainment Allowance

The Premier's Entertainment Allowance will be abolished. This action will achieve savings of approximately $13 000 per annum.

SES Salary Freeze

The salaries of Senior Executive Service (SES) officers and Heads of Agency will be frozen for one year from 1 July 2009. It is estimated this action will achieve total savings of $750 000 in 2009-10 increasing to $1.3 million in 2010-11 and thereafter.

1.6 Introduction STRUCTURE OF BUDGET PAPER NO 2 GOVERNMENT SERVICES

Budget Paper No 2 is structured to reflect the differing nature of the entities within the General Government Sector and consists of three parts:

• Part 1 includes Government departments, such as the Department of Education and the Department of Health and Human Services;

• Part 2 includes Parliamentary agencies, such as the House of Assembly and the Legislative Council, and other independent entities such as the Tasmanian Audit Office and the Office of the Ombudsman; and

• Part 3 includes the major Statutory Authorities within the General Government Sector, such as the Inland Fisheries Service, the State Fire Commission, Tasmanian Academy, Tasmanian Polytechnic, and Tasmanian Skills Institute. Changes to Budget Paper No 2

The structure and content of Budget Paper No 2 is largely consistent with the presentation of information provided in the 2008-09 Budget. However, the key changes include:

• the presentation of the Income Statements in accordance with the revisions made to Australian Accounting Standards Board AASB 101 Presentation of Financial Statements; and

• the enhancement of performance information in Budget Paper No 2 in accordance with the recommendations in the Auditor-General's Special Report No. 72 Public Sector Performance Information.

Introduction 1.7 The structure of Budget Paper No 2 chapters is presented in Chart 1.1.

Chart 1.1: Budget Paper No 2 Chapter Structure

Agency Introduction

Agency Outline Major Initiatives

Output Group Budget Infrastructure Allocations Information Capital Investment Program Summary Financial (CIP) Expenditure Information by Output Group Special Capital Investment Performance Information Funds (SCIF) Expenditure

Detailed Budget Statements

Income Statement Balance Sheet Cash Flow Statement

1.8 Introduction CURRENT MINISTERIAL PORTFOLIO AND DEPARTMENTAL STRUCTURE

The Ministerial portfolio and departmental structure of the Tasmanian Government, which reflects the departmental restructure implemented under the Administrative Arrangements Order 2009 and the State Service (Restructuring) Order (No 2) 2008, is outlined in Chart 1.2. The departmental structure also reflects the restructure announced by the Premier, David Bartlett MP, on 14 May 2009.

The Premier announced that with effect from 1 July 2009, the Department of Environment, Parks, Heritage and the Arts would be amalgamated with the Department of Primary Industries and Water, and the Department of Economic Development and Tourism. The 2009-10 Budget has been structured in accordance with the Premier's announcement.

Table 1.1 shows the Ministerial portfolio allocations and departmental responsibility for the General Government Sector Statutory Authorities.

Introduction 1.9 Chart 1.2: Structure of the Tasmanian Government

MINISTER PORTFOLIO DEPARTMENT

Premier Premier and Cabinet

Hon David Bartlett MP

Minister for Education Education and Skills

Attorney-General

Justice

Hon Lara Giddings Minister for Justice MP

Health and Human Minister for Health Services

Treasury and Treasurer Finance

Infrastructure, Hon Michael Aird Minister for Racing Energy and MLC Resources

Minister for Economic Economic Development, Development Tourism and the Arts

1.10 Introduction Chart 1.2: Structure of the Tasmanian Government (continued)

MINISTER PORTFOLIO DEPARTMENT

Primary Industries, Minister for Primary Parks, Water and Industries and Water Environment

Infrastructure, Hon David Llewellyn Minister for Energy Energy and MP and Resources Resources

Minister for Planning Justice

Minister for Primary Industries, Environment, Parks, Parks, Water and Heritage and the Arts Environment

Economic Hon Michelle Minister for Tourism Development, O’Byrne MP Tourism and the Arts

Minister for Sport and Recreation

Minister for Police Police and and Emergency Emergency Management Management Hon Jim Cox MP Minister for Local Premier and Cabinet Government

Introduction 1.11 Chart 1.2: Structure of the Tasmanian Government (continued)

1.12 Introduction Table 1.2: General Government Sector Authorities Statutory Authority Portfolio Minister Portfolio Department

Inland Fisheries Service Hon David Llewellyn MP Primary Industries, Parks, Water and Environment Marine and Safety Tasmania Hon Graeme Sturges MP Infrastructure, Energy and Resources The Nominal Insurer Hon David Llewellyn MP Justice Royal Tasmanian Botanical Gardens Hon Michelle O'Byrne MP Primary Industries, Parks, Water and Environment State Fire Commission Hon Jim Cox MP Police and Emergency Management Tasmanian Academy Hon David Bartlett MP Education Tasmanian Polytechnic Hon David Bartlett MP Education Tasmanian Skills Institute Hon David Bartlett MP Education

FURTHER INFORMATION ON BUDGET PAPER NO 2

Further information on the structure and content of Budget Paper No 2 is provided in the Guide to the Budget that accompanies the Budget Papers. The Guide is designed to assist readers by explaining the financial information presented in the Budget Papers, and by providing illustrative examples of the main financial statements detailed in the Budget Papers.

Introduction 1.13

2 DEPARTMENT OF ECONOMIC DEVELOPMENT, TOURISM AND THE ARTS

AGENCY OUTLINE

The Department of Economic Development, Tourism and the Arts facilitates economic and industry development, provides opportunities for Tasmanians to participate in sport, recreation and physical activity, promotes the Tasmanian tourism industry and is responsible for the protection and promotion of the State's cultural assets.

A departmental restructure was announced by the Premier on 14 May 2009, where the responsibility for the Arts has been transferred from the former Department of Environment, Parks, Heritage and the Arts, to form the new Department of Economic Development, Tourism and the Arts.

The Department of Economic Development, Tourism and the Arts reports to the Minister for Economic Development, Hon Michael Aird MLC, as well as the Minister for Tourism, Minister for Sport and Recreation and Minister for Environment, Parks, Heritage and the Arts, Hon Michelle O'Byrne MP.

The Tasmanian Development Board and the Tourism Tasmania Board are responsible for administering specific functions of the Department.

The Department aims to show leadership for Tasmania by:

• being responsive to our clients' needs and helping them to achieve their goals;

• supporting Tasmanians to succeed domestically and internationally;

• promoting investment and assisting Tasmanians to seek market opportunities;

• recognising and developing Tasmania's attractiveness to visitors;

• developing Tasmania's arts community to fulfil its role as a cultural and economic driver;

• providing, promoting and facilitating interaction with, and understanding of, the cultural and natural world;

• improving Tasmanians' wellbeing and prosperity; and

• advising on and implementing government policy.

The Department achieves these outcomes through the formulation of evidence-based strategies for key industry sectors, as well as through its focus on outstanding client and stakeholder relationships, best practice governance and business processes, together with leadership capability, skill development and employee engagement.

Economic Development, Tourism and the Arts 2.1 This chapter provides the Department's financial information for 2009-10 and the Forward Estimates period (2010-11 to 2012-13). Further information on the Department is provided at http://www.development.tas.gov.au and http://www.depha.tas.gov.au.

MAJOR INITIATIVES

Table 2.1 provides a summary of the Budget and Forward Estimate allocations for major initiatives.

Table 2.1: Major Initiatives Statement 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000)

Business Online Services project (BOS) 385 247 97 22 Aurora Stadium 2 000 …. …. …. Bellerive Oval Lighting 2 000 …. …. …. Domain Tennis Centre 1 050 …. …. ….

Business Online Services Project (BOS)

The Business Online Services (BOS) project is part of a national regulatory reform project to create a national ABN/BN registration system. The BOS system will deliver a range of information services to allow business to discover and save personalised information on their regulatory obligations, subscribe to updates and access transaction services in a seamless, whole-of-government environment.

Aurora Stadium

In 2009-10, the State Government will provide $2.0 million towards the Aurora Stadium and Invermay Park redevelopment. The redevelopment at Aurora Stadium will comprise a new sporting grandstand with seating capacity of 2 125, including amenities, change facilities and corporate suites.

Bellerive Oval Lighting

In 2009-10, the State Government will contribute $2.0 million for the installation of lights at Bellerive Oval. The lights will enable Tasmania to host international one day and 20/20 games, and ensure the future of international cricket in the State.

Domain Tennis Centre

In 2009-10, the State Government will provide $1.05 million to enable a significant increase in seating capacity at the Domain Tennis Centre. This investment will secure Tasmania's future as part of the Australian Open Series. Funding of $1.2 million was provided in 2008-09 to commence the project which will increase the permanent capacity of the centre from around 1 400 currently, to 2 500. The State Government's financial assistance complements the recent installation of the premium international-standard Plexicushion court surface, identical to that at Melbourne Park.

2.2 Economic Development, Tourism and the Arts OTHER INITIATIVES AND STRATEGIES

In addition to the major initiatives and strategies listed in Table 2.1, the Department will also advance the following initiatives and strategies.

Global Financial Crisis Response

The Department is playing a leading role in assisting Tasmanian businesses to meet the impact of the Global Financial Crisis, as well as enabling businesses to position themselves to take advantage of any opportunities that may arise.

During 2008-09, the Department in partnership with private sector organisations and peak bodies delivered a range of information workshops. The workshops focused on improving business management and the development of strategies to manage the impact of change. In 2009-10, the Business Response Unit will increase resources in the Skills Response Team. The Unit will assist companies by exploring options available to best satisfy the needs of employers and employees when businesses are downsizing or closing. The Department is responsible for a number of initiatives, detailed below, to help cushion the economy from the impact of the Global Financial Crisis.

Economic Development Strategy

During 2009-10, the Department will continue to develop an overarching economic development strategy, focusing on Tasmania's capabilities and sustainable competitive advantages, as well as complementary strategies for key industry sectors. The strategy will address issues arising from the current economic climate and prepare the State for future recovery, with a focus on:

• investment attraction and facilitation;

• job retention and skill development;

• leveraging key public sector infrastructure investments with complementary private sector investment;

• improving business competitiveness, sustainability and productivity; and

• leveraging Tasmania's brand and assisting businesses to trade nationally and internationally.

The Department will also continue to lead the development and implementation of a Tasmanian Innovation Strategy that builds on the work undertaken by the Australian Innovation Research Centre.

National Broadband Network

Tasmania will lead the way in implementing the Australian Government's $43 billion National Broadband Network. State-of-the-art technology will deliver superfast broadband to homes and workplaces, schools and hospitals. It will transform Tasmania's economy, creating 21st century jobs and businesses.

The Department has the primary responsibility to pursue and secure Tasmania's share of the many benefits offered by the development opportunities that will emerge as a result of this unique project, including:

• maximising Tasmanian skills, labour and employment regarding the project and spin off activities; and

• maximising investment in the State from parties looking to participate in the project, support the network, deploy innovative applications and services, and create new business opportunities.

Economic Development, Tourism and the Arts 2.3 Support for Local Government Infrastructure Investment

The purpose of the Local Government Infrastructure Assistance Program is to support local government expand investment in infrastructure, particularly in Tasmania's rural and regional areas, through the provision of loan interest subsidies. The Department will support local government by providing advice and expertise in the development of applications and facilitating access to other State Government programs which may assist in the development of projects for consideration under the Program.

Tasmanian Industry Support Scheme

The Department's extended Tasmanian Industry Support Scheme (TISS) is an initiative that provides support for sustainable private sector businesses, which are otherwise at risk of closure or significant downsizing, or are experiencing an impaired investment capacity, as a result of the current volatility in financial markets and the consequent credit conditions.

Farm Water Development

The Farm Water Development Loan Scheme (FWDLS) will help farmers grow their businesses through more effective utilisation of water resources. Low interest loans will be administered by the Department under the Farm Water Development Act 1985 to support the uptake of best practice irrigation infrastructure and associated on-farm water storage, and to encourage high value production.

Hobart Waterfront

The Department will work with TasPorts to ensure the Port of Hobart retains and enhances its capability as a centre of Antarctic and Southern Ocean activity, cruise shipping, and ship-building, servicing, and refurbishment. The Department will continue to work on a range of property development proposals to assist with the development of a cultural, research and learning precinct in and around Hobart's waterfront.

Renewable Energy

During 2009-10, the Department will continue a preliminary role in the facilitation of some renewable energy projects (noting that the key role for energy development lies with the Office of Energy Conservation and Planning in the Department of Infrastructure, Energy and Resources):

• The manufacture in Tasmania of biodiesel in commercial quantities will commence shortly. Three plants are currently under construction or in a commissioning stage.

• A government working group has been considering the regulatory environment that could apply to ocean energy projects to enable such projects to be successfully developed.

• The Department has recently undertaken a pre-feasibility study into the production of Biochar. Biochar is produced from pyrolysis of biomass. Syngas from the pyrolysis process can be used as a fuel to produce electricity. Biochar is used as a means of soil remediation and has significant potential as a form of carbon sequestration.

2.4 Economic Development, Tourism and the Arts Digital Marketing Strategy

The Digital Marketing Strategy encompasses the deployment of Tourism Tasmania's online assets (including web sites, digital audio and video content, rich internet applications, community groups, banner advertisements, and search engine marketing), in a manner that maximises the business benefits for the Tasmanian tourism industry.

Tas e-Connect

Tourism Tasmania's Tas e-Connect initiative is aimed at creating more opportunities for consumers to purchase Tasmanian tourism product online, in real time, all the time.

Tas e-Connect is about growing the number of distribution channels for Tasmanian tourism products and increasing the number of tourism businesses accessing these channels.

A key component of the Tas e-Connect program is provision of the open booking exchange technology for the Tasmanian tourism industry. This technology is integral in assisting Tasmanian operators to be digitally distributed through a broad range of online distributors with real-time availability of their product.

Marketing with Access Partners

Tourism Tasmania will continue to work on strategic access development with Tasmania's key access partners – Jetstar, Qantas, Tiger Airways, Virgin Blue and Spirit of Tasmania.

Marketing partnerships have been developed with these access partners as a key element of the strategy to increase access to Tasmania and provide consumers with options to get to and from Tasmania. Tourism Tasmania works with the carriers to identify forward load factors and yields, and develop appropriate marketing strategies to stimulate carriage to and from Tasmania.

Economic Development, Tourism and the Arts 2.5 OUTPUT INFORMATION Output Group Restructure

The Department's Output Group structure reflects the Departmental restructure announced by the Premier, David Bartlett MP, on 14 May 2009. Responsibility for the Arts has been transferred to the Department of Economic Development and Tourism to form the new Department of Economic Development, Tourism and the Arts.

Specifically, the following Outputs have been transferred from the former Department of Environment, Parks, Heritage and the Arts (DEPHA):

• Tasmanian Museum and Art Gallery; and

• Art Industry Development Output.

To enable comparison of Budget information, the 2008-09 Budget figures have been recast to reflect the amalgamation of DEDT and DEPHA.

In addition, the Tourism Output Group has been consolidated. Tourism Marketing (Output 3.1), Tourism Destination Development (Output 3.2), and Tourism Distribution Services (Output 3.3) have been combined to form Tourism (Output 3.1). The Major Event Support Output has been renamed Events (Output 3.2).

Outputs of the Department of Economic Development, Tourism and the Arts are provided under the following Output Groups:

• Output Group 1 – Economic Development;

• Output Group 2 – Sport and Recreation;

• Output Group 3 – Tourism; and

• Output Group 4 – Arts.

2.6 Economic Development, Tourism and the Arts Output Group Expense Summary

Table 2.2 provides an Output Group Expense Summary for the Department of Economic Development, Tourism and the Arts.

Table 2.2: Output Group Expense Summary1 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Minister for Economic Development

Output Group 1 - Economic Development 1.1 Export and Trade Facilitation2 4 140) 3 784) 3 857) 3 910) 3 894) 1.2 Investment Attraction and Industry Development3 17 942) 17 065) 16 940) 15 104) 15 324) 1.3 Innovation Support4 16 689) 13 606) 8 425) 6 689) 6 754) 1.4 Labour and Employment5 4 278) 1 934) 1 948) 1 965) 1 980) 1.5 Antarctic Industry Development 1 189) 1 160) 1 166) 1 176) 1 186) 1.6 Film, TV and Multimedia Industry Development 1 214) 1 182) 1 187) 1 196) 1 202) 1.7 Industry Research and Strategy 1 802) 1 735) 1 757) 1 791) 1 819) 1.8 Small Business Development6 5 500) 6 223) 6 488) 5 115) 5 104) 52 754) 46 689) 41 768) 36 946) 37 263)

Special Capital Investment Funds7 5 730) 600) ....) ....) ....)

Minister for Sport and Recreation

Output Group 2 - Sport and Recreation 2.1 Sport and Recreation8 11 927) 10 324) 10 875) 9 097) 9 198)

Special Capital Investment Funds7 1 780) 5 125) 300) ....) ....)

Minister for Tourism

Output Group 3 - Tourism 3.1 Tourism9 32 773) 28 482) 25 261) 25 329) 25 489) 3.2 Events10 3 393) 3 124) 2 877) 2 622) 2 651) 36 166) 31 606) 28 138) 27 951) 28 140)

Grants and Subsidies 1 000) 1 000) 1 000) 1 000) 1 000)

Special Capital Investment Funds7 3 475) 3 601) 3 625) 990) ....)

Economic Development, Tourism and the Arts 2.7 Table 2.2: Output Group Expense Summary1 (continued) 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Minister for Environment, Parks, Heritage and the Arts

Output Group 4 - Arts 4.1 Tasmanian Museum and Art Gallery11 7 537) 6 342) 6 110) 6 708) 6 809) 4.2 Art Industry Development12 8 870) 7 270) 7 105) 7 125) 7 165) 16 407) 13 612) 13 215) 13 833) 13 974)

Grants and Subsidies 2 876) 2 785) 2 850) 2 916) 2 976)

TOTAL 132 115) 115 342) 101 771) 92 733) 92 551)

2.8 Economic Development, Tourism and the Arts Output Group 1: Economic Development

Table 2.3 provides financial information for each Output under Output Group 1. A description of the Outputs follows the table.

Table 2.3: Summary Financial Information - Output Group 1 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Economic Development

Expenses by Output 1.1 Export and Trade Facilitation1 4 140) 3 784) 3 857) 3 910) 3 894) 1.2 Investment Attraction and Industry Development2 17 942) 17 065) 16 940) 15 104) 15 324) 1.3 Innovation Support3 16 689) 13 606) 8 425) 6 689) 6 754) 1.4 Labour and Employment4 4 278) 1 934) 1 948) 1 965) 1 980) 1.5 Antarctic Industry Development 1 189) 1 160) 1 166) 1 176) 1 186) 1.6 Film, TV and Multimedia Industry Development 1 214) 1 182) 1 187) 1 196) 1 202) 1.7 Industry Research and Strategy 1 802) 1 735) 1 757) 1 791) 1 819) 1.8 Small Business Development5 5 500) 6 223) 6 488) 5 115) 5 104) 52 754) 46 689) 41 768) 36 946) 37 263)

Retained Revenue6 1 697) 4 777) 4 712) 4 635) 4 358)

Net Cost of Output Group 51 057) 41 912) 37 056) 32 311) 32 905)

Appropriation 40 949) 36 036) 36 379) 33 673) 34 048)

Notes: 1. The decrease in the Export and Trade Facilitation Output in 2009-10 reflects the impact of the Government's Budget Management Strategies. 2. The decrease in the Investment Attraction and Industry Development Output reflects the impact of the Government's Budget Management Strategies and the timing of funding for the Tasmanian Brand Project. 3. The decrease in the Innovation Support Output in 2009-10 and over the Forward Estimates reflects a decrease in Intelligent Island disbursements. 4. The movement in the Labour and Employment Output reflects a change in funding for the Workforce Participation Program. 5. The movement in the Small Business Development Output reflects additional funding received from the Australian Government for the Business Online Service, and the timing of funding for the expansion of the Enterprise Growth Program. 6. The increase in Retained Revenue reflects the interest to be received from the Tasmania Development and Resources Loan, Property and Equity Portfolio as a result of the new Tasmanian Industry Support Scheme and Farm Water Loans.

Economic Development, Tourism and the Arts 2.9 1.1 Export and Trade Facilitation

This Output provides services to assist Tasmanian businesses with the identification and development of new domestic and overseas markets and export opportunities. Assistance is provided through training and management support to targeted businesses, industry bodies and government departments, as well as targeted trade missions and trade fairs.

1.2 Investment Attraction and Industry Development

This Output undertakes investment attraction promotional activities, seeks to assist Tasmanian enterprises become investment ready and also assists with the provision of project support and finance facilitation services to potential investors considering major strategic economic development opportunities. In addition, this Output includes the Tasmanian Brand Project that will focus on encouraging and promoting Tasmania as a great place to Live, Work, Play, Learn, Invest, and Trade.

1.3 Innovation Support

This Output delivers the Tasmanian Innovations Program Support services for the development of innovative ideas, and assists organisations involved in science and technology-based activities. This Output also facilitates the grant disbursement arrangements associated with the Intelligent Island Program.

1.4 Labour and Employment

This Output provides assistance to businesses, industry sectors and regional communities to respond appropriately to labour and skills shortages and displaced workers, as well as providing assistance for long-term and disadvantaged unemployed people to enter the labour force. In 2009-10, the Business Response Unit will increase resources in the Skills Response Team. The Unit will assist companies by exploring options available to best satisfy the needs of employers and employees when businesses are downsizing or closing. The Output continues to respond to changes in the supply and demand for labour caused by economic factors and demographic change.

1.5 Antarctic Industry Development

This Output promotes Tasmania's international profile as a centre for Antarctic and Sub-Antarctic activity, with the intention of increasing the amount of expenditure in Tasmania from Antarctic-related enterprises.

1.6 Film, TV and Multimedia Industry Development

This Output fosters, develops and supports Tasmania's film, television and multimedia industries in creating world-class work.

1.7 Industry Research and Strategy

This Output provides support for the development of economic and industry strategy, and research-based projects linked to generating increased investment in Tasmania. The research-based projects focus on three themes:

• creating an increasingly competitive business environment;

• maximising opportunities arising from Tasmania's infrastructure projects; and

2.10 Economic Development, Tourism and the Arts • identifying investment and reinvestment opportunities for the State, particularly those that will support Tasmania's key future industries.

This Output also provides executive support to industry councils.

1.8 Small Business Development

This Output provides State-wide support for the expansion of existing small businesses, as well as promoting the establishment of new businesses that are forward-looking, internationally competitive, and capable of long-term growth. Services are provided through Regional Offices and Enterprise Centres located throughout the State.

Table 2.4: Performance Information - Output Group 1 Unit of 2006-07 2007-08 2008-09 2009-10 Performance Measure1 Measure Actual Actual Target Target

Jobs created and retained2 Number 3 080 3 280 3 000 3 000 Investment facilitated3 $ million 522.3 419.4 300.0 300.0 Exports facilitated4 $ million 190.3 111.1 70.0 70.0 Import Replacements Facilitated $ million 46.5 35.6 40.0 40.0 Increased Revenue Arising from Innovation $ million 14.8 18.2 20.0 20.0 Investment Facilitated in R&D and Innovation5 $ million 19.1 43.3 15.0 15.0

Notes: 1. During 2006-07, the Department reviewed its methodology for the setting of performance targets to better align outcomes with its overall funding allocation. The Department expects to achieve the majority of its performance targets during 2008-09. The Department considers that the Australian and State Governments' stimulus spending, including infrastructure, together with a lag effect arising from the completion of investment projects currently underway should provide it with the opportunity to meet existing targets during 2009-10. 2. In the 2008-09 Budget Papers, the 2007-08 Target for jobs created and retained was 3 000, the 2007-08 Actual result of 3 280 primarily reflects assistance provided to several equipment manufacturers, as well as arising employment from investment in the property and mining sectors. 3. In the 2008-09 Budget Papers, the 2007-08 Target for investment facilitation was $300 million. The 2007-08 Actual result of $419.4 million primarily reflects increased activity in the mining, manufacturing and property sectors. 4. In the 2008-09 Budget Papers, the 2007-08 Target for export facilitation was $70 million. The 2007-08 Actual result of $111.1 million primarily reflects increased activity in the resource and manufacturing (steel fabrication) sectors. 5. Intelligent Island funding for the Tasmanian ICT Centre as well as the Market Access and Partnerships Program (MAPP) commenced during 2006-07, with strong results recorded against the Investment Facilitated in R&D and Innovation target. MAPP funds, which leverage complementary private sector investment, are expected to be fully expended during 2008-09.

Tasmania Together

In addition to the Performance Indicators listed above, the Department is the lead agency responsible for and an active contributor to a range of Tasmania Together benchmarks. Further information can be found at www.tasmaniatogether.tas.gov.au.

Economic Development, Tourism and the Arts 2.11 Output Group 2: Sport and Recreation

Table 2.5 provides financial information for the single Output under Output Group 2. A description of the Output follows the table.

Table 2.5: Summary Financial Information - Output Group 2 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Sport and Recreation

Expenses by Output 2.1 Sport and Recreation1 11 927) 10 324) 10 875) 9 097) 9 198) 11 927) 10 324) 10 875) 9 097) 9 198)

Retained Revenue 1 897) 1 887) 1 924) 1 959) 1 989)

Net Cost of Output Group 10 030) 8 437) 8 951) 7 138) 7 209)

Appropriation 9 518) 7 847) 8 391) 6 575) 6 658)

Note: 1. The movement in the Sport and Recreation Output in 2009-10 and over the Forward Estimates reflects the timing of funding provided for the Tracks, Trails and City Bikeways Project and one-off payments for the Ulverstone Showground Redevelopment, Wynyard Sport Precinct and the Evandale Sport Centre.

2.1 Sport and Recreation

This Output Group contributes to a range of State Government economic and social policies through the development of opportunities for all Tasmanians to participate in sport and recreation activities. This includes a focus on both social and economic outcomes by optimising the State's sport and recreation assets, and developing the sport and recreation sector.

2.12 Economic Development, Tourism and the Arts Table 2.6: Performance Information – Output Group 2 Unit of 2006-07 2007-08 2008-09 2009-10 Performance Measure Measure Actual Actual Target Target

Number of participation opportunities facilitated through SRT grants and programs1 Number 140 146 151 920 112 500 112 500 Total Investment in sport and recreation infrastructure and programs2 $ million 14.6 13.8 9.1 9.1

Notes: 1. The 2008-09 Target reflects the participation opportunities estimated during the preparation of the 2008-09 Budget. This Target excluded the impact of additional funding provided for the State Grants program. The actual result for 2008-09 is anticipated to be higher than this Target estimate. The 2009-10 Target reflects a reduction in funding for this activity. However, the participation rate will be positively impacted through investment in Tracks, Trails and City Bikeways, and major sporting infrastructure. 2. An improved Total Investment in Sport and Recreation Infrastructure and Programs result in 2006-07 and 2007-08 primarily reflects additional one-off funding being provided to contribute towards the development of major sporting infrastructure. Output Group 3: Tourism

Table 2.7 provides financial information for each Output under Output Group 3. A description of the Outputs follows the table.

Table 2.7: Summary Financial Information - Output Group 3 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Tourism

Expenses by Output 3.1 Tourism1 32 773) 28 482) 25 261) 25 329) 25 489) 3.2 Events 3 393) 3 124) 2 877) 2 622) 2 651) 36 166) 31 606) 28 138) 27 951) 28 140)

Retained Revenue 7 009) 1 360) 1 160) 1 360) 1 560)

Net Cost of Output Group 29 157) 30 246) 26 978) 26 591) 26 580)

Appropriation 28 881) 26 322) 23 193) 23 066) 23 204)

Note: 1. The decrease in the Tourism Output in 2009-10 reflects the impact of the Government's Budget Management Strategies, including $2.7 million relating to the closure of the Tasmania Temptations Holidays business.

Economic Development, Tourism and the Arts 2.13 3.1 Tourism

The Output supports development strategies and approaches to encourage experiential tourism products that will build competitive advantage, attract visitors to the state and exceed visitor expectations. It includes the provision of advice and information on tourism investment opportunities, assists and encourages the development of new tourism infrastructure, and works with industry and government partners to ensure that Tasmania continues to develop new and engaging experiences that connect visitors with the destination.

The Output provides conversion opportunities for Tasmanian tourism operators though all distribution channels with an emphasis on the development and implementation of a global digital distribution strategy to present more Tasmanian products to more consumers, via open digital channels, for purchase online in real-time.

The Output uses a variety of marketing approaches to stimulate awareness and demand for travel to and around Tasmania in intrastate, interstate and international markets by building a strong distinctive brand, delivering highly differentiated marketing campaigns and developing significant national and international cooperative partnerships. The Output also facilitates public relations activities that attract editorial coverage in all target markets.

3.2 Events

This Output plays a leadership role in stimulating events growth in Tasmania. This is achieved through the attraction and retention of a diverse range of events, and through building on the development opportunities of the existing events portfolio. Events Tasmania works with key events that deliver on a range of social, cultural, economic and environmental benefits to the Tasmanian community.

Table 2.8: Performance Information - Output Group 3 Unit of 2006-07 2007-08 2008-09 2009-10 Performance Measure Measure Actual Actual Target Target

Total visitors1 '000 881 937 987 993 Total visitor spend2 $ million 2 086 2 162 2 170 2 185 Market share International % 3.0 3.0 3.0 3.0 Interstate3 % 4.1 3.7 3.7 3.7 Events visitor spend $ million 54 48.6 50 52 Prompted advertising awareness % 28.7 31.4 30.1 30.1 Prompted advertising tag-line awareness % 12.0 13.2 12.3 12.3 Discovertasmania.com total visits4 '000 1 396 1 252 1 400 1 450

Sources: - Total visitors: Tasmanian Visitor Survey, Tas Ports (Cruise ships), and Department of Defence (Navy HQ); 2008-09 estimates are a direct extrapolation of the most contemporary data available. - Total visitor spend: Tasmanian Visitor Survey and National Visitor Survey; International and interstate spend data is collected by the TVS; Intrastate overnight and day-trip data is supplied by the NVS. - Market Share International: International Visitor Survey. - Market Share Interstate: National Visitor Survey. - Events visitor spend: Events Tasmania Event Management System. - Prompted advertising tag-line awareness: Roy Morgan Research – Holiday Tracking Survey. - Discovertasmania.com total visits: HBX web traffic data; a visit is defined as the viewing of one or more pages of a web site with no more than 30 minutes of inactivity.

2.14 Economic Development, Tourism and the Arts Notes: 1. The 2009-10 Target is based on the application of a 0.7 per cent increase as determined by the Tourism Forecasting Committee for the calendar year 2010. 2. The 2006-07 Total visitor spend figure has been revised upwards from $2 009 million, to reflect actual spend based on the most contemporary data. 3. The 2006-07 Market share, Interstate figure has been revised down from the 2008-09 Budget Paper figure of 4.2 per cent due to rounding. 4. Discovertasmania.com total visits is a new measure using more robust methodologies, than the previous search engine referrals measure.

Performance Information Comments

The performance information highlights Tasmania's solid performance against the national trend of a softening domestic travel climate, having posted increased visitation growth and visitor spend in the reporting period. These results are consistent with reports from across Tasmania's tourism industry and signal a strong performance by Tasmania, particularly in the context of the Global Financial Crisis.

Of major concern is the contraction in the Australian and global economies and their impact on consumer confidence and propensity to travel. According to Roy Morgan Research, and Tourism Tasmania's own travel confidence survey of active travellers, despite an increase in the proportion of respondents thinking it is good time to travel for leisure, more consumers think they will take fewer trips, and spend less on leisure travel, in the next 12 months.

Despite the poor domestic outlook and amid substantial competition from other states and international destinations, the outlook for visitation to Tasmania appears strong with modest growth expected throughout 2009-10.

Economic Development, Tourism and the Arts 2.15 Output Group 4: Arts

Table 2.9 provides financial information for each Output under Output Group 4. A description of the Outputs follows the table.

Table 2.9: Summary Financial Information - Output Group 4 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Arts

Expenses by Output 4.1 Tasmanian Museum and Art Gallery1 7 537) 6 342) 6 110) 6 708) 6 809) 4.2 Art Industry Development2 8 870) 7 270) 7 105) 7 125) 7 165) 16 407) 13 612) 13 215) 13 833) 13 974)

Retained Revenue 715) 696) 698) 698) 700)

Net Cost of Output Group 15 692) 12 916) 12 517) 13 135) 13 274)

Appropriation 14 977) 12 925) 12 536) 12 654) 12 795)

Notes: 1. The decrease in the Tasmanian Museum and Art Gallery Output in 2009-10 reflects the impact of the Government's Budget Management Strategies. 2. The decrease in the Art Industry Development Output reflects the impact of the Government's Budget Management Strategies.

4.1 Tasmanian Museum and Art Gallery

This Output aims to increase community understanding of the cultural and natural world by collecting, conserving, interpreting and researching material evidence within the areas of humanities, including visual arts, history and anthropology, and the biological and physical sciences. It provides the community with opportunities to experience the past and the present. It invites participation in the State's collection and offers a stimulating museum and art environment.

4.2 Art Industry Development

This Output focuses on providing support to Tasmanian artists and art organisations. It aims to broaden the engagement of Tasmanians in the arts, highlight the State's diverse arts and cultural sector and deepen Tasmanian cultural experiences. It provides funding to major Tasmanian cultural institutions in order to assist their planning and realisation of projects, as well as to attract and encourage new work.

2.16 Economic Development, Tourism and the Arts Table 2.10: Performance Information - Output Group 4 Unit of 2006-07 2007-08 2008-09 2009-10 Performance Measure Measure Actual Actual Target Target

Tasmanian Museum and Art Gallery TMAG Total Visitors1 Number 992/day 864/day 875/day 800/day

Art Industry Development Attendance at selected cultural venues '000 774 770 790 800 Contribution to GSP of selected cultural industries $ million 130 132 133 132 Employment in selected cultural and leisure activities Number 20 100 20 200 20 300 20 300

Note: 1. The 2009-10 Target has been revised down as a result of anticipated constraints on visitor access due to the redevelopment program.

Economic Development, Tourism and the Arts 2.17 SPECIAL CAPITAL INVESTMENT FUNDS

Table 2.11 identifies expenditure by the Department from the Government's Special Capital Investment Funds.

Table 2.11: Special Capital Investment Fund (SCIF) Allocations Estimated) 2009-10) 2010-11) 2011-12) 2012-13) Total) ) Forward) Forward) Forward) Cost) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Urban Renewal and Heritage Fund Devonport Regional Play Space 300) ....)) 300) ....) ....) Devonport Skate Park 75) 75) ....) ....) ....) ) 75) 300) ....) ....)

Economic and Social Infrastructure Fund AFL Arrangement - Hawthorn Football Club 16 746) 3 601) 3 625) 990) ....) Aurora Stadium 2 000) 2 000) ....) ....) ....) Bellerive Oval Lighting 2 000) 2 000) ....) ....) ....) Domain Tennis Centre 2 250) 1 050) ....) ....) ....) Industry Assistance Program 4 000) 600) ....) ....) ....) Tasmanian Museum and Art Gallery 30 000) 8 000) 6 000) 6 000) 5 262) ) 17 251) 9 625) 6 990) 5 262)

Total SCIF Allocations ) 17 326) 9 925) 6 990) 5 262)

Urban Renewal and Heritage Fund

Devonport Regional All Abilities Playspace

In 2010-11, the State Government will provide $300 000 to assist the Devonport City Council to develop a regional all abilities playspace at the Mersey Bluff. The new playspace will provide contemporary equipment and opportunities for children to participate in physical play.

The new playspace will develop the potential of the Mersey Bluff precinct as a key social interaction area, providing a range of individual, family and community opportunities for Devonport and the region.

Devonport Skate Park

In 2009-10, the State Government will provide $75 000 to the Devonport City Council to complete Stage 2 of the upgrade of its existing skate park to address safety and risk issues, and cater for a broad range of users. The Council has allocated $155 000 to the upgrade of the facility to provide opportunities for physical participation leading to the improved physical and psychological wellbeing of users, a reduced likelihood of anti-social behaviour, and to create an environment that engenders community pride and harmony.

2.18 Economic Development, Tourism and the Arts Economic and Social Infrastructure Fund

AFL Arrangement – Hawthorn Football Club

In 2007, the Government entered into a five-year agreement with the Hawthorn Football Club to play AFL football in Tasmania and to promote the State. The agreement includes the Hawthorn Football Club playing four home games and one pre-season game at Aurora Stadium each year, and promoting the State more broadly, including having Tasmania as the Club's Naming Rights Sponsor.

Aurora Stadium

In 2009-10, the State Government will provide $2.0 million towards the Aurora Stadium and Invermay Park redevelopment. The redevelopment at Aurora Stadium will comprise a new sporting grandstand with seating capacity of 2 125 including amenities, change facilities and corporate suites.

Consolidated sporting facilities will be provided at Invermay Park through the relocation of an existing grandstand and cricket clubroom from Aurora Stadium. The redevelopment will provide new facilities for the North Launceston Junior Football Club, Mowbray Cricket Club, Old Launcestonians Football Club, and the Northern Tasmania Football Umpires Association, as well as improvements to the northern entrance to Invermay Park.

Bellerive Oval Lighting

In 2009-10, the State Government will contribute $2.0 million for the installation of lights at Bellerive Oval. The lights will enable Tasmania to stage international one day and 20/20 games, and ensure the future of international cricket in the State.

Domain Tennis Centre

In 2009-10, the State Government will provide $1.05 million to enable a significant increase in seating capacity at the Domain Tennis Centre. This investment will secure Tasmania's future as part of the Australian Open Series. Funding of $1.2 million was provided in 2008-09 to commence the project, which will increase the permanent capacity of the centre from around 1 400 currently to 2 500. The State Government's financial assistance complements the recent installation of the premium international-standard Plexicushion court surface, identical to that at Melbourne Park.

Industry Assistance Program

The Industry Assistance program provides grants, subsidies, and development support projects to assist those businesses that can demonstrate a net economic benefit to the State. The $600 000 represents commitments made in previous years but the funding will be disbursed during 2009-10.

Tasmanian Museum and Art Gallery

This 2006 Election commitment provides for a major redevelopment of the Hobart TMAG site. The redevelopment will feature preservation of key heritage buildings, an archaeological dig, and a new TMAG building. In 2009-10, work will include architectural concept designs with subsequent documentation and commencement of works funded at the present level.

Economic Development, Tourism and the Arts 2.19 DETAILED BUDGET STATEMENTS

Table 2.12: Income Statement 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Revenue Revenue from Appropriation1 94 325) 83 130) 80 499) 75 968) 76 705) Interest Revenue2 924) 3 002) 2 900) 2 812) 2 500) Grants3 19 007) 19 213) 11 849) 8 949) 7 251) Sales of Goods and Services4,5 8 497) 2 832) 2 641) 2 821) 3 028) Other Revenue5 ....) 999) 1 029) 1 060) 1 090) 122 753) 109 176) 98 918) 91 610) 90 574)

Less Expenses Employee Entitlements6 31 684) 29 227) 27 203) 25 429) 23 910) Superannuation6 3 290) 2 997) 3 073) 2 972) 2 844) Depreciation and Amortisation 1 741) 1 721) 1 611) 1 535) 1 635) Borrowing Costs7 1 473) 2 193) 2 323) 2 193) 2 043) Grants and Transfer Payments8 51 373) 41 739) 31 108) 23 306) 24 421) Supplies and Consumables9 36 684) 31 937) 31 085) 32 024) 32 632) Other Expenses6 1 995) 1 743) 1 518) 1 358) 1 090) 128 240) 111 557) 97 921) 88 817) 88 575)

Plus Gains/(Losses) Other Gains/(Losses) (200) (100) (50) (50) ....) (200) (100) (50) (50) ....)

Equals OPERATING RESULT (5 687) (2 481) 947) 2 743) 1 999)

Plus Other Movements in Equity Revaluations of Non-Financial Assets10 21 356) 7 994) 10 267) 10 552) 10 140) Other Non-Owner Movements in Equity ....) ....) ....) ....) ....) 21 356) 7 994) 10 267) 10 552) 10 140)

Equals COMPREHENSIVE INCOME 15 669) 5 513) 11 214) 13 295) 12 139)

Notes: 1. The movement in Revenue from Appropriation in 2009-10 and over the Forward Estimates primarily reflects the completion of a number of Budget initiatives from prior years, and the impact of the Government's Budget Management Strategies. 2. The movement in Interest Revenue reflects anticipated interest to be received from the Tasmania Development and Resources Loan, Property and Equity Portfolio as a result of the new Tasmanian Industry Support Scheme and Farm Water Loans.

2.20 Economic Development, Tourism and the Arts 3. The decrease in Grants over the Forward Estimates reflects a decrease in Special Capital Investment Fund allocations. 4. The decrease in Sales of Goods and Services in 2009-10 reflects the closure of the Launceston Call Centre, Tasmania Temptations and the reclassification of the Hobart Technopark rental income to Other Revenue. 5. The increase in Other Revenue in 2009-10 and over the Forward Estimates reflects the reclassification of the Hobart Technopark rental income from Sales of Goods and Services. 6. The decrease in Employee Entitlements, Superannuation and Other Expenses in 2009-10 and over the Forward Estimates reflects the closure of the Tasmania Temptations Holidays business and the impact of the Government's Budget Management Strategies. 7. The movement in Borrowing Costs reflects the interest incurred on borrowing additional monies to fund the new Tasmanian Industry Support Scheme and Farm Water Loans. 8. The movement in Grants and Transfer Payments reflects the timing of funding for Tracks, Trails and City Bikeways Project, one-off grant payments for the Ulverstone Showground Redevelopment, Spirit of the Sea, Evandale Sports Centre; the continued run-off of the Intelligent Island Program; and the decrease in the Special Capital Investment Fund allocations. 9. The movement in Supplies and Consumables primarily reflects the impact of the Government's Budget Management Strategies. 10. The movement in Revaluations of Non-Financial Assets reflects the estimated valuation movements of the Department's Land and Buildings, and Heritage and Cultural Assets.

Table 2.13: Revenue from Appropriation 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Annual Appropriation Recurrent 94 325) 83 130) 80 499) 75 968) 76 705)

Total Revenue from Appropriation1 94 325) 83 130) 80 499) 75 968) 76 705)

Note: 1. The decrease in Revenue from Appropriation in 2009-10, 2010-11, and 2011-12 reflects the completion of a number of Budget initiatives from prior years and the impact of the Government's Budget Management Strategies.

Economic Development, Tourism and the Arts 2.21 Table 2.14: Income Statement - Administered 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Revenue Revenue from Appropriation 3 876) 3 785) 3 850) 3 916) 3 976) 3 876) 3 785) 3 850) 3 916) 3 976)

Less Expenses Grants and Transfer Payments 3 876) 3 785) 3 850) 3 916) 3 976) 3 876) 3 785) 3 850) 3 916) 3 976)

Equals OPERATING RESULT ....) ....) ....) ....) ....)

Plus Other Movements in Equity Revaluations of Non-Financial Assets ....) ....) ....) ....) ....) Other Non-Owner Movements in Equity ....) ....) ....) ....) ....)

Equals COMPREHENSIVE INCOME ....) ....) ....) ....) ....)

Table 2.15: Administered Expenses 2008-09] 2009-10] 2010-11] 2011-12] 2012-13] ) ) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Grants and Subsidies Ten Days On The Island 1 400) 1 205) 1 229) 1 254) 1 279) Government Contribution to the Tasmanian Symphony Orchestra 1 318) 1 414) 1 449) 1 484) 1 519) Tasmanian Icon Program 1 000) 1 000) 1 000) 1 000) 1 000) Theatre Royal 158) 166) 172) 178) 178) 3 876) 3 785) 3 850) 3 916) 3 976)

Total Administered Expenses 3 876) 3 785) 3 850) 3 916) 3 976)

2.22 Economic Development, Tourism and the Arts Ten Days On The Island

The State Government will continue its support for Ten Days On The Island by committing permanent funding from 2009-10. Encompassing all art forms, Ten Days On The Island 2009 featured five world premieres and 17 Australian premieres. Over 730 artists from 20 countries – Australia, Nova Scotia Canada, Taiwan, Cuba, Denmark, Iceland, Italy, Hong Kong, Torres Strait, Jamaica, Japan, Mauritius, Newfoundland, New Caledonia, New Zealand, Samoa, Scotland, Singapore, Taiwan, United States of America and Wales – participated in 62 Festival projects in 99 venues in 52 locations across the State. Ten Days On The Island was also the focal point for the 2009 National Play Festival and the Tasmania Book Prizes. In addition Ten Days On The Island 2009 attracted national meetings to Tasmania, such as the Confederation of Australian International Arts Festivals.

Government Contribution to Tasmanian Symphony Orchestra

The State Government continues to support the Tasmanian Symphony Orchestra (TSO). The TSO is one of the world's finest small orchestras.

Tasmanian Icon Program

This program is designed to utilise world-class Tasmanian talent to promote the State both nationally and internationally. Currently, funded icons are the Tasmanian Symphony Orchestra, and the State Cricket Team, the Tassie Tigers.

Theatre Royal

The Theatre Royal is Australia's oldest continually operating theatre. The Government has committed to continue funding the Theatre Royal an ongoing basis.

Economic Development, Tourism and the Arts 2.23 Table 2.16: Balance Sheet as at 30 June 2009) 2010) 2011) 2012) 2013) ) ) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Assets Financial Assets Cash and Deposits1 30 944) 25 424) 23 402) 24 602) 24 377) Investments1 21 485) 45 335) 61 089) 46 145) 25 645) Equity Investments2 4 096) 3 553) 3 487) 3 080) 3 080) Receivables3 1 169) 766) 776) 766) 761) Other Financial Assets3 2 497) 1 200) 1 300) 1 400) 1 400) 60 191) 76 278) 90 054) 75 993) 55 263)

Non-Financial Assets Land and Buildings4 29 509) 40 313) 45 136) 49 974) 54 132) Plant and Equipment5 922) 1 149) 957) 815) 428) Heritage and Cultural Assets4 363 769) 404 360) 414 272) 423 910) 434 000) Investment Property6 9 650) 11 100) 11 100) 11 100) 11 100) Intangibles7 122) 398) 352) 307) 263) Other Non-Financial Assets8 765) 2 518) 2 494) 2 480) 2 530) 404 737) 459 838) 474 311) 488 586) 502 453)

Total Assets 464 928) 536 116) 564 365) 564 579) 557 716)

Liabilities Borrowings1 20 027) 39 024) 56 024) 43 024) 24 024) Employee Entitlements 6 368) 6 543) 6 533) 6 437) 6 417) Payables9 2 500) 4 359) 4 324) 4 329) 4 334) Other Liabilities 4 366) 2 832) 2 912) 2 922) 2 935) Total Liabilities 33 261) 52 758) 69 793) 56 712) 37 710)

NET ASSETS 431 667) 483 358) 494 572) 507 867) 520 006)

Equity Accumulated Funds 136 846) 99 016) 99 963) 102 706) 104 705) Asset Revaluation Reserve 294 821) 384 342) 394 609) 405 161) 415 301) Total Equity 431 667) 483 358) 494 572) 507 867) 520 006)

Notes: 1. The decrease in Cash and Deposits in 2010 reflects the increase of loans advanced by the Department under the Tasmania Development and Resources Loan, Property and Equity Portfolio. This has been financed by a decrease in Cash and an increase in Borrowings. Over the Forward Estimates the decrease in Investments and Borrowings reflects the repayment of the loans advanced. 2. The decrease in Equity Investments in 2010 reflects a decrease in the value of returns from investments held in First Tasmania Investments Ltd.

2.24 Economic Development, Tourism and the Arts 3. The decrease in Receivables and Other Financial Assets in 2010 primarily reflects the closure of the Tasmania Temptations Holiday business. 4. The increase in Land and Buildings and Heritage and Cultural Assets reflects the capitalisation of costs under the Tasmanian Museum and Art Gallery major redevelopment project. In addition, the Heritage and Cultural Assets have increased from the donation of a herbarium collection to the Tasmanian Museum and Art Gallery from the Australian Antarctic Division. 5. The increase in Plant and Equipment in 2010 primarily reflects the purchase of plant and equipment for the Silverdome. 6. The increase in Investment Properties in 2010 reflects the revaluation of current land and buildings held under the Tasmanian Development Act 1983. 7. The increase in Intangibles reflects the capitalisation of software developments within the Department. The respective decrease in Forward Estimates is due to amortisation of such capitalisations as the useful life is expended. 8. The increase in Other Non-Financial Assets reflects a higher than anticipated closing balance in 2008 and a more accurate estimate of Non-Financial Assets. 9. The increase in Payables reflects the additional interest accrual on outstanding loans which have increased as a result of the new Tasmania Industry Support Scheme and Farm Water Loans.

Economic Development, Tourism and the Arts 2.25 Table 2.17: Cash Flow Statement 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Cash Flows from Operating Activities Cash Received Appropriation1 94 325) 83 130) 80 499) 75 968) 76 705) Interest Received2 924) 3 002) 2 900) 2 812) 2 500) Grants3 19 007) 19 213) 11 849) 8 949) 7 251) Sales of Goods and Services4 8 497) 2 829) 2 631) 2 831) 3 033) GST Receipts 6 500) 6 500) 6 500) 6 500) 6 500) Other Receipts5 ....) 999) 1 029) 1 060) 1 090) 129 253) 115 673) 105 408) 98 120) 97 079)

Cash Paid Employee Entitlements6 (31 506) (29 045) (27 017) (25 329) (23 930) Superannuation6 (3 290) (2 997) (3 073) (2 972) (2 844) Borrowing Costs7 (1 473) (2 143) (2 293) (2 193) (2 093) Grants and Transfer Payments8 (51 273) (41 639) (31 008) (23 206) (24 321) Supplies and Consumables9 (36 716) (31 969) (31 117) (32 056) (32 564) GST Payments (6 500) (6 500) (6 500) (6 500) (6 500) Other Payments6 (1 995) (1 743) (1 518) (1 358) (1 090) (132 753) (116 036) (102 526) (93 614) (93 342)

Net Cash Flows from Operating Activities (3 500) (363) 2 882) 4 506) 3 737)

Cash Flows from Investing Activities Purchase of Fixed Assets10 (6 275) (8 650) (6 650) (6 150) (5 412) Net Purchase of Investments11 2 700) 600) 600) 1 000) ....) Net Customer Loans (Granted)/Repaid12 450) (24 865) (15 854) 14 844) 20 450) Net Cash Flows from Investing Activities (3 125) (32 915) (21 904) 9 694) 15 038)

Cash Flows from Financing Activities Net Borrowings12 (1 000) 23 000) 17 000) (13 000) (19 000) Net Cash Flows from Financing Activities (1 000) 23 000) 17 000) (13 000) (19 000)

Net Increase/(Decrease) in Cash Held (7 625) (10 278) (2 022) 1 200) (225)

Cash at the Beginning of the Year 38 569) 35 702) 25 424) 23 402) 24 602) Cash at the End of the Year 30 944) 25 424) 23 402) 24 602) 24 377)

2.26 Economic Development, Tourism and the Arts Notes: 1. The movement in Appropriation in 2009-10 and over the Forward Estimates primarily reflects the completion of a number of Budget initiatives from prior years and the impact of the Government's Budget Management Strategies. 2. The movement in Interest Received reflects increased interest from the Tasmania Development and Resources Loan, Property and Equity Portfolio as a result of the new Tasmanian Industry Support Scheme and Farm Water Loans. 3. The decrease in Grants revenue over the Forward Estimates primarily reflects the decrease in Special Capital Investment Fund allocations. 4. The decrease in Sales of Goods and Services in 2009-10 primarily reflects the closure of the Tasmania Temptations Holiday business and the reclassification of the Hobart Technopark rental income to Other Receipts. 5. The increase in Other Receipts in 2009-10 and over the Forward Estimates reflects the reclassification of the Hobart Technopark rental income from the Sales of Goods and Services. 6. The decrease in Employee Entitlements, Superannuation, and Other Payments in 2009-10 and over the Forward Estimates reflects the closure of the Tasmania Temptations Holiday business, and the impact of the Government's Budget Management Strategies. 7. The movement in Borrowing Costs reflects the interest incurred on borrowing additional monies to fund the new Tasmanian Industry Support Scheme and Farm Water Loans. 8. The movement in Grants and Transfer Payments reflects the timing of funding for Tracks, Trails and City Bikeways, one-off grant payments for the Ulverstone Showground Redevelopment, Spirit of the Sea, Evandale Sports Centre; the continued winding down of the Intelligent Island Program; and the decrease in the Special Capital Investment Fund allocations. 9. The movement in Supplies and Consumables primarily reflects the impact of the Government's Budget Management Strategies. 10. The movement in Purchases of Fixed Assets primarily reflects capitalisation of costs under the Tasmanian Museum and Art Gallery major redevelopment project. 11. The movement in Net Purchase of Investments reflects a decrease in the value of returns from some investments held in First Tasmania Ltd. 12. The movement in Net Customer Loans (Granted)/Repaid reflects the increase of loans advanced by the Department under the Tasmania Development and Resources Loan, Property and Equity Portfolio. Over the Forward Estimates the movement in Customer Loans and Net Borrowings reflects the repayment of the loans advanced.

Table 2.18: Cash Flow Statement – Administered 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Cash Flows from Operating Activities Cash Received Appropriation 3 876) 3 785) 3 850) 3 916) 3 976) 3 876) 3 785) 3 850) 3 916) 3 976)

Cash Paid Grants and Transfer Payments (3 876) (3 785) (3 850) (3 916) (3 976) (3 876) (3 785) (3 850) (3 916) (3 976)

Net Increase/(Decrease) In Cash Held ....) ....) ....) ....) ....)

Cash at the Beginning of the Year ....) ....) ....) ....) ....) Cash at the End of the Year ....) ....) ....) ....) ....)

Economic Development, Tourism and the Arts 2.27

3 DEPARTMENT OF EDUCATION

AGENCY OUTLINE

The Department of Education provides services through three major organisational units: Early Years; Learning Services and Schools; Information Services and Community Learning; and a statutory authority in Skills Tasmania.

These services are delivered to more than 62 500 students attending schools and colleges and four campuses of the Tasmanian Academy and Polytechnic or utilising distance education programs. Through Skills Tasmania, services are provided to more than 40 000 students and Tasmanian businesses accessing vocational education and training services each year. In addition, the Department operates 51 Public Libraries, 67 Online Access Centres, nine Adult and Community Education Centres and the Archives Office of Tasmania. The Department also licences and regulates child care and administers post-compulsory qualifications through the Tasmanian Qualifications Authority.

The service delivery areas are supported by central business units responsible for corporate support, policy development, regulation, and assessment and review. Each of the service delivery areas is being guided by major strategic initiatives:

• The Learner at the Centre;

• Qualifications and Skills for Tasmania Tomorrow; and

• Community Knowledge Network.

The Learner at the Centre is a strategic framework for the Education and Skills portfolio for the four years 2009–2012. It builds upon earlier policy documents such as Student at the Centre and aligns all key portfolio directions to the Government's goals to enable every Tasmanian to reach their potential, at all stages of life and to nurture a culturally rich, socially cohesive and economically productive community.

The three priorities of the pre-compulsory and compulsory years of schooling strategy are to ensure that children starting school are confident and curious and have already begun to learn, to improve the basic literacy and numeracy skills of all school aged children, and to ensure that young people have attained the appropriate knowledge, skills and experience as a passport to move into the post-compulsory years.

The Qualifications and Skills for Tasmania Tomorrow strategy is being implemented in 2009. During 2008, three new boards were established to direct the Tasmanian Polytechnic, the Tasmanian Academy and the Tasmanian Skills Institute which provide the foundation of the Tasmania Tomorrow strategy. The training directions to be pursued through the strategy are guided by Skills Tasmania through the negotiation of formal memoranda of understanding with the Tasmanian Polytechnic and the Tasmanian Skills Institute and aligned with the Tasmanian Skills Strategy. Skills Tasmania continues to work on the development of strategies to improve training in areas important to Tasmanian business and industry.

Education 3.1 The implementation of the Community Knowledge Network strategy is continuing in 2009-10, with a focus on the engagement of the Tasmanian community in lifelong learning. This information and community learning framework will be delivered through easily accessible integrated information and educational services bringing together coordinated services which embrace libraries, online access centres, and adult education. Establishment of Learning and Information Network Centres (LINCs) as a single point of access will be central to this strategy.

The responsible Minister is the Minister for Education and Skills, David Bartlett MP. This chapter provides the Department's financial information for 2009-10 and the Forward Estimates period (2010-11 to 2012-13). Further information on the Department is provided at http://www.education.tas.gov.au.

3.2 Education MAJOR INITIATIVES

Table 3.1 provides a summary of the Budget and Forward Estimate allocations for major initiatives.

Table 3.1: Major Initiatives Statement 2009-10 2010-11 2011-12 2012-13 Forward Forward Forward Budget Estimate Estimate Estimate $'000 $'000 $'000 $'000

Bridgewater and Southern Midland Education Renewal Project 9 345 8 192 11 800 …. Child and Family Centres 27 400 27 400 20 498 …. Community Knowledge Network – Learning Information Network Centres (LINCs) 2 258 4 810 7 000 3 500 Community Use of School Facilities 150 150 …. …. Early Years Recognition of Child Care Qualifications 250 250 250 250 Kingston High School 9 500 13 750 …. …. Launching into Learning 4 250 4 250 4 250 4 250 Literacy and Numeracy Strategies Raising the Bar and Closing the Gap1 10 000 8 000 8 000 8 000 Learning Services Literacy Strategy 3 000 3 000 3 000 3 000 Early Years Literacy 220 220 220 220 Reading Together 100 100 100 100 Partnerships with the Australian Government Building the Education Revolution 207 412 132 958 …. …. Digital Education Revolution 7 073 5 080 5 016 4 981 Early Childhood Reform 1 540 1 940 5 940 10 415 Smarter Schools Improving Teacher Quality 316 809 5 117 4 154 Literacy and Numeracy 2 061 …. …. …. Low Socio-Economic Status School Communities 7 101 9 584 17 533 17 007 Trade Training Centres in Schools 6 202 6 429 6 614 6 844 Reducing Class Sizes from Years 2 to 7 6 094 7 837 7 387 7 387 School Resourcing Review 136 …. …. …. Secondary School Renewal Program 2 000 2 000 2 000 …. Skills Tasmania Productivity Places Program 1 800 1 800 1 800 1 800 Industry Network Solutions 800 …. …. …. 2 Sustainability Learning Centre (SLC) 2 500 …. …. …. Tasmania Tomorrow 4 300 2 500 …. …. Teacher Learning Centre 318 318 318 318

Notes: 1. In 2008-09 and 2009-10, the Australian Government has provided additional funding of $2.0 million per annum to further support the $8.0 million State contribution towards the Raising the Bar and Closing the Gap program. 2. The Department is the lead partner in this Australian Government funded Local Schools Working Together program.

Education 3.3 Bridgewater and Southern Midlands Education Renewal Project

In 2009-10, $9.3 million is provided for the second year of a $30.0 million four year investment to establish contemporary education facilities as part of the Bridgewater and the Southern Midlands Renewal project.

Child and Family Centres

Commencing in 2009, capital investment funding of $76.1 million over three years will be allocated for up to 30 Child and Family Centres in Tasmania. Child and Family Centres will be a one-stop shop for families, integrating all of those services that make the most difference in the early years of a child's life. They will provide parenting programs, early learning support, child and family health services, early identification of children with special needs, and access to adult education and training. The Centres will play a vital role in strengthening local communities and helping to prepare our youngest Tasmanians for a healthy lifestyle and success at school.

In 2009-10, an allocation of $27.4 million will support the establishment of eight centres at Beaconsfield, East Devonport, Queenstown, George Town, Ravenswood, Clarendon Vale, Chigwell, and Risdon Cove.

Community Use of School Facilities

Provision of public liability insurance coverage for certain community groups using Department of Education sporting and recreational facilities. The coverage will be provided on a two year trial basis at an estimated cost of approximately $300 000. This initiative will remove a previous barrier restricting community use of the Department's facilities and will increase participation in sport and recreation activities leading to improved health, social and life skills outcomes.

Community Knowledge Network

The implementation of the Community Knowledge Network strategy will continue in 2009-10 by bringing together the State's Public Libraries, Online Access Centres, Adult Education and Archives and Heritage services. In 2009-10, four key strategies will contribute significant progress in the implementation of the Community Knowledge Network:

• Further capital funding of $3.5 million in 2012-13, part of a total capital commitment of $17.6 million, to establish five Learning and Information Network Centres (LINCs) in regional centres to improve access to information, technology, skills development and training opportunities and to engage community members in lifelong learning.

• The bringing together of Community Knowledge Network staff in urban centres as a first step towards the establishment of urban LINCs in Burnie, Devonport, Glenorchy, Hobart, Kingston, Launceston and Rosny.

• The development of a Tasmanian Information Framework to address the opportunities afforded by the new Community Knowledge Network and Tasmanian Archives and Heritage Office for the effective and coordinated acquisition, storage, discovery, use, and preservation of Tasmanian information. This Tasmanian Information Framework will include traditional as well as digital information sources and services.

• The development of a new Records Retention and Disposal Schedule for Tasmania's 29 local governments.

3.4 Education Early Years Recognition of Child Care Qualifications

In 2009-10, $250 000 is provided to target recognition of existing child care skills as formal qualifications within the Tasmanian child care sector. This initiative provides a qualification pathway for child carers and will significantly increase the number of qualified carers in the sector.

Kingston High School

In 2009-10, $9.5 million is provided for the third year of a four year $33.0 million Capital Investment Project to construct a new Kingston High School, catering for approximately 700 secondary students from Years 7 to 10. The new school will be equipped with modern information and technology systems and multi-purpose learning areas. It will also provide state-of-the-art specialist facilities to accommodate innovative programs in key areas such as science and technology, music, languages, the arts, design and sport.

Launching into Learning

The allocation of $4.3 million in 2009-10 is to support young children before they formally commence school.

Literacy and Numeracy Strategies

The emphasis on improving literacy will further increase in 2009-10 through the continuation of several existing strategies:

• Raising the Bar and Closing the Gap – State funding of $8.0 million per annum has been allocated to enable targeted support to significantly increase the number of children finishing primary school with functional literacy and numeracy skills. A further $2.0 million per annum has been provided in 2008-09 and 2009-10 through a joint agreement with the Australian Government;

• Learning Services Literacy Strategy - $3.0 million per annum will continue this initiative;

• Premier's Reading Challenge - this initiative will continue on an annual basis;

• Early Years Literacy - this program will continue with $220 000 provided per annum to enhance learning opportunities for young people through the provision of books for parents to read to their children; and

• Reading Together - $100 000 per annum to continue this initiative of working with families to explore ways of developing the literacy skills of children.

Partnerships with the Australian Government

The Department of Education has a number of partnership arrangements with the Australian Government. The following are some of the key initiatives.

Building the Education Revolution

The Building the Education Revolution is a key element of the Australian Governments Nation Building – Economic Stimulus Plan and will provide funding to help schools meet the needs of students and teachers. In 2009-10, $207.4 million will be provided to Tasmanian Schools, $151.3 million will be available to government schools and $56.1 million to non-government schools under three programs:

• Primary Schools for the 21st Century;

• National School Pride Program; and

Education 3.5 • Science and Language Centres for 21st Century Schools.

Digital Education Revolution

In 2008-09, the Department entered into a National Partnership Agreement with the Australian Government. The Digital Education Revolution will provide new information and communication technology for all secondary schools with students in Years 9 to 12. The aim is to contribute sustainable and meaningful change to teaching and learning in Australian schools that will prepare students for further education, training and to live and work in a digital world.

Early Childhood Reform

Schools in Tasmania currently provide at least 10 hours of kindergarten a week. As part of the National Partnership Agreement on Early Childhood Education with the Australian Government, funding has been provided for Achieving Universal Access to Early Childhood Education. This is enabling the Department to progressively implement a strategy to provide all Tasmanian children with access to at least 15 hours of kindergarten by 2013. In 2009-10, $1.5 million will be provided to deliver this initiative to 40 state government schools and to the non-government sector.

Smarter Schools

Tasmania has developed a single bi-lateral agreement and one holistic implementation plan to address the three National Partnership Agreements: Improving Teacher Quality; Literacy and Numeracy; and Low Socio-Economic Status School Communities.

Improving Teacher Quality - The Tasmanian focus on improving the quality of teaching, professional learning, leadership and the establishment of professional learning networks underpins the Tasmanian approach, and is supported by all sectors. All schooling sectors in Tasmania recognise that improving teaching is central to school improvement and student achievement. The Tasmanian Improving Teacher Quality National Partnership aims to deliver reforms targeting critical points in the teacher 'lifecycle' to attract, train, place, develop and retain quality teachers and leaders in our schools and classrooms. There is strong synchronicity with the National Improving Teacher Quality agenda and Tasmania's Partnerships in Teaching Excellence program.

Literacy and Numeracy - The Tasmanian Literacy and Numeracy approach addresses: effective and evidence-based teaching of literacy and numeracy; strong school leadership and whole school engagement with literacy and numeracy; and monitoring student and school literacy and numeracy performance to identify where support is needed. Schools participating in the National Partnership will commit to developing whole school or, where possible, federation/network-wide literacy and numeracy plans. Initiatives designed and implemented will focus on pedagogy, must be evidence based and will use student performance data to inform areas of action. The plans will be required to address all National Partnership Literacy and Numeracy priority areas for reform.

Low Socio-Economic Status School Communities - The Tasmanian Low SES School Communities approach addresses all six areas identified in the Low SES School Communities National Partnership. A multi-strategy approach has been adopted in order to meet the diverse needs of communities and sectors, and to bring about significant progress towards reforms. There are seven key Low SES strategies, five of which will be targeted towards schools and groups of schools in Low SES communities with particular identified needs and two for which expressions of interest from Low SES School communities will be called. This Low SES approach will be interwoven with both the Literacy and Numeracy and Teacher Quality

3.6 Education National Partnership initiatives with implementation requiring an approach that will build capability and support sustainable school improvement over time.

Trade Training Centres in Schools

The Australian Government's Trade Training Centres In Schools Program enables all secondary schools to apply for funding of between $500 000 and $1.5 million for Trade Training Centres. Centres are being established to help increase the proportion of students achieving a Year 12 or an equivalent qualification and help address skill shortages in traditional trades and emerging industries.

The Tasmanian Polytechnic in collaboration with regional schools has been successful in attracting funding in the first (2008) funding round for new training centres at Scottsdale, George Town and Bridgewater. Tasmania will continue to participate in this program in the current and future funding rounds.

Reducing Class Sizes from Years 2 to 7

In 2009-10, total funding of $6.1 million has been allocated toward reducing class sizes from Years 2 to 7. This is an increase of $1.7 million from the 2008-09 total allocation of $4.4 million and includes an additional $1.1 million provided to continue the program to reduce class sizes to 25 students in all government primary schools and an additional $581 000 targeted at reducing the pupil teacher ratio in Year 7 to below the national average. A further $1.7 million will be provided in 2010-11 and thereafter to continue the phasing in of this five year initiative.

School Resourcing Review

Funding of $136 000 will be allocated in 2009-10 to conduct a review of school resourcing. The review will inform Tasmanian Government decisions about how best to allocate resources to support schools' core business of improving student learning outcomes and will ensure that both financial and staffing allocations reflect student needs simply and effectively. The University of Melbourne has been contracted to conduct research in Tasmanian schools and to provide advice on the modelling of future allocation mechanisms.

Secondary School Renewal Program

This $6.0 million program will commence in 2009-10 with $2.0 million targeted towards significant works at a number of secondary and district high schools to modernise and improve the standard of existing secondary school facilities.

Skills Tasmania

• Productivity Places Program – Continuation of a state allocation of $1.8 million per annum to provide additional training places for over 8 000 existing workers and 4 000 job seekers. The program is jointly funded with the Australian Government. This initiative will both assist people seeking employment who are affected by the current economic downturn and enable enterprises and their employees to increase their skills base to take advantage of opportunities that will be presented when the economy rebounds.

• Tasmanian Skills Strategy – Implementation of the Tasmanian Skills Strategy guides the investment in skills acquisition to match the state's skills needs. Directional themes being developed by Skills Tasmania will prioritise skills required to enable Tasmania to emerge from the current economic crisis with a more globally competitive, environmentally sustainable and socially inclusive economy.

Education 3.7 • Workforce Development – Develop a communication strategy, jointly with the Department of Economic Development, Tourism and the Arts, to promote workforce planning and development and associated skills acquisition to industry.

• Industry Network Solutions – Provide up to $800 000 in 2009-10 to partner with industry in developing skills solutions that will build capacity and competitiveness and a greater ability to respond to opportunities from an economic upturn.

• Expand and Increase Competition in the Tasmanian Training Market – Commencing from 1 January 2010, progressively remove the restrictions on access to government funding for the delivery of training to apprentices in traditional trades where the Tasmanian Skills Institute is currently the only government funded registered training provider. This responds to calls from industry to allow choice of training provider to create greater competition in meeting enterprise skill development needs.

Sustainability Learning Centre

The Department is the lead partner with the Catholic Education Office and Association of Independent Schools (Tas) to construct the first sustainability and climate change education centre for Tasmanian schools and community. The Centre will be an interactive building in a bush setting that demonstrates sustainability principles as a 'hands on' educational tool. As lead partner, the Department will oversee the project which received capital funding of $2.5 million as part of the Australian Government Local Schools Working Together Program.

Tasmania Tomorrow

The Tasmania Tomorrow initiative will undergo a period of consolidation in 2009-10, as the establishment of the Tasmanian Academy, Tasmanian Polytechnic and the Tasmanian Skills Institute continues to progress.

This will be supported through:

• ongoing implementation of the Tasmanian Skills Strategy;

• further development and refinement of the purchasing arrangements between the Department of Education, Skills Tasmania and the three Tasmania Tomorrow entities; and

• the planned incorporation of remaining senior secondary colleges in the Tasmania Tomorrow structure in 2010 and 2011.

Further information on the Tasmania Tomorrow statutory authorities is provided in Chapter 24 of Budget Paper No 2 Government Services.

Teacher Learning Centre

The Department of Education and the University of Tasmania have established a Partnerships in Teaching Excellence initiative to support pre-service teachers and to improve the ongoing professional development opportunities for all teachers through study supported by UTAS. To support this initiative, a Teacher Learning Centre has been established at Rokeby High School.

3.8 Education OUTPUT INFORMATION

Outputs of the Department of Education are provided under the following Output Groups:

• Output Group 1 – Pre-Compulsory and Compulsory Education;

• Output Group 2 – Post-Compulsory Education and Skills Development; and

• Output Group 3 – Community Knowledge Network. Output Group Restructure

A new Output structure for both Output Group 2 Post-Compulsory Education and Skills Development, and Output Group 3 Community Knowledge Network will apply in 2009-10. The Output restructure reflects the changed operations and funding within the Department resulting from the implementation of the Tasmania Tomorrow initiative and restructure of the Community Knowledge Network Output Group.

Under the Tasmania Tomorrow initiative, three new statutory authorities, the Tasmanian Academy, the Tasmanian Polytechnic and the Tasmanian Skills Institute were established and commenced operations from 1 January 2009. The creation of these new statutory authorities is the result of amalgamation of four senior secondary colleges from the Department with the former statutory authority TAFE Tasmania. As at 1 January 2009, Hobart College, Newstead College, Don College and Hellyer College transferred their operations to the new statutory authorities.

Changes to Outputs in the 2009-10 Budget include:

• the renaming and change of purpose for Output 2.1 Skills Development Contestable Funding, previously Skills Development TAFE Tasmania. This Output will include budgeted expenditure relating to skills development for employees in enterprises, including those attending the newly created Tasmanian Skills Institute;

• the creation of new Outputs for the Tasmanian Polytechnic (Output 2.2) and the Tasmanian Academy (Output 2.3);

• Budget allocations for Post-Compulsory Education activities previously undertaken by TAFE Tasmania, which previously fell under Output 2.1 Skills Development TAFE, have been budgeted under the new Tasmanian Polytechnic and the Skills Development Contestable Funding Outputs; and

• the creation of a new Output, Information Services and Community Learning (Output 3.1), resulting from the amalgamation of the Public Library and Information Services Output and the Adult and Community Learning Services Output.

The Department's 2008-09 Budget figures have been recast to reflect the new Output structures to allow comparison with the 2009-10 Budget and Forward Estimates.

Education 3.9 Output Group Expense Summary

Table 3.2 provides an Output Group Expense Summary for the Department of Education.

Table 3.2: Output Group Expense Summary1 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Output Group 1 - Pre-Compulsory and Compulsory Education 1.1 In School Education2,3 632 200) 670 063) 689 601) 710 933) 723 733) 1.2 Learning Services4 18 637) 17 997) 19 175) 18 741) 19 072) 1.3 Education Performance Services5 1 734) 2 297) 2 852) 2 886) 2 926) 1.4 Early Years6 1 660) 5 140) 5 561) 9 626) 12 178) 1.5 Grants and Financial Assistance 8 457) 8 427) 8 427) 8 427) 8 427) 662 688) 703 924) 725 616) 750 613) 766 336)

Output Group 2 - Post-Compulsory Education and Skills Development 2.1 Skills Development Contestable Funding7 71 318) 83 277) 88 395) 91 690) 81 178) 2.2 Tasmanian Polytechnic8 36 244) 35 744) 36 408) 37 354) 38 415) 2.3 Tasmanian Academy3 12 909) 12 220) 12 929) 14 202) 15 503) 2.4 Post-Compulsory Education in Schools3,9 44 179) 41 484) 41 484) 41 484) 41 484) 2.5 Skills Tasmania10 9 863) 8 506) 8 612) 8 749) 8 909) 2.6 Tasmanian Qualifications Authority 3 703) 3 596) 3 644) 3 706) 3 776) 2.7 Grants and Financial Assistance11 2 290) 1 970) 1 970) 1 970) 1 970) 180 506) 186 797) 193 442) 199 155) 191 235)

Output Group 3 - Community Knowledge Network 3.1 Information Services and Community Learning12 35 544) 34 620) 34 308) 35 099) 35 770) 3.2 Tasmania Archives and Heritage Office 2 782) 3 100) 3 144) 3 240) 3 315) 38 326) 37 720) 37 452) 38 339) 39 085)

Grants and Subsidies13 173 958) 234 802) 224 144) 201 963) 201 983)

Capital Investment Program14 4 520) 850) 850) 850) 850)

TOTAL 1 059 998) 1 164 093) 1 181 504) 1 190 920) 1 199 489)

3.10 Education 2. The increase in the In School Education Output reflects increased expenditure resulting from additional Australian Government funding for National Partnership agreements including the Digital Education Revolution, Smarter Schools and Early Childhood Reform. 3. The 2009-10 Budget and Forward Estimates include a Budget reduction due to declining enrolment demand. This reduction will be subject to review on the basis of retention performance achieved in the first half of 2009. 4. The decrease in the Learning Services Output in 2009-10 reflects the impact of the Government's Budget Management Strategies. 5. The increase in the Education Performance Services Output in 2009-10 reflects the reclassification of expenses resulting from the implementation of Tasmania Tomorrow and minor increased expenditure relating to the National Assessment Program – Literacy and Numeracy (NAPLAN). 6. The increase in the Early Years Output in 2009-10 and over the Forward Estimates reflects the implementation of the Bilateral Agreement on Achieving Universal Access to Early Childhood Education between the Department and the Australian Government and funding for the Local Government Children Service. 7. The increase in the Skills Development Contestable Funding Output is primarily due to expenditure relating to the National Partnership agreements between the Department and Australian Government on Productivity Places Program ($6.5 million in 2009-10), and Trade Training Centres in Schools ($6.2 million in 2009-10). The Productivity Places Program ceases in 2011-12 resulting in the decrease in this Output in 2012-13. 8. The Tasmanian Polytechnic Output reflects the reclassification of Budget allocations for Post-Compulsory Education activities previously undertaken by TAFE Tasmania and colleges with the implementation of Tasmania Tomorrow. The reduction from the 2008-09 Budget to the 2009-10 Budget reflects the impact of the Government's Budget Management Strategies. 9. The Post-Compulsory Education in Schools Output has been maintained at 2009-10 budgeted levels pending the resolution of the transfer of the remaining colleges to the Tasmania Tomorrow model. 10. The decrease in the Skills Tasmania Output in 2009-10 reflects the cessation of miscellaneous Australian Government programs resulting from implementation of the Council of Australian Governments (COAG) Intergovernmental Agreement on Federal Financial Relations. 11. The decrease in the Grants and Financial Assistance Output is due to the cessation of assistance for Group Schemes in 2008-09. 12. The decrease in the Information Services and Community Learning Output in 2009-10 reflects the impact of the Government's Budget Management Strategies. 13. The increase in Grants and Subsidies in 2009-10 and 2010-11 reflects the increase in administered grant payments to the non-government sector from the Australian Government for the Building the Education Revolution. 14. The decrease in Capital Investment Program relates to the Australian Government funding that was previously provided to TAFE Tasmania. TAFE Tasmania received $3.6 million per annum from the Australian Government for Capital Investment Program projects. A new funding arrangement has not yet been determined with the Tasmanian Academy, the Tasmanian Polytechnic and the Tasmanian Skills Institute, therefore the expenditure has not been included in the Forward Estimates.

Education 3.11 Output Group 1: Pre-Compulsory and Compulsory Education

Table 3.3 provides financial information for each Output under Output Group 1. A description of the Outputs follows the table.

Table 3.3: Summary Financial Information - Output Group 1 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Pre-Compulsory and Compulsory Education

Expenses by Output 1.1 In School Education1 632 200) 670 063) 689 601) 710 933) 723 733) 1.2 Learning Services2 18 637) 17 997) 19 175) 18 741) 19 072) 1.3 Education Performance Services3 1 734) 2 297) 2 852) 2 886) 2 926) 1.4 Early Years4 1 660) 5 140) 5 561) 9 626) 12 178) 1.5 Grants and Financial Assistance 8 457) 8 427) 8 427) 8 427) 8 427) 662 688) 703 924) 725 616) 750 613) 766 336)

Retained Revenue 36 678) 37 205) 38 501) 40 718) 41 318)

Net Cost of Output Group 626 010) 666 719) 687 115) 709 895) 725 018)

Appropriation 589 029) 628 613) 650 870) 682 339) 691 188)

Notes: 1. The increase in the In School Education Output reflects increased expenditure resulting from additional Australian Government funding for National Partnership agreements including the Digital Education Revolution, Smarter Schools and Early Childhood reform offset by a Budget reduction on the basis of declining enrolment demand. 2. The decrease in the Learning Services Output in 2009-10 reflects the impact of the Government's Budget Management Strategies. 3. The increase in the Education Performance Services Output in 2009-10 reflects the reclassification of expenses resulting from the implementation of Tasmania Tomorrow and minor increased expenditure relating to the National Assessment Program – Literacy and Numeracy (NAPLAN). 4. The increases in the Early Years Output in 2009-10 and the Forward Estimates reflect the implementation of the Bilateral Agreement on Achieving Universal Access to Early Childhood Education between the Department and the Australian Government and funding for the Local Government Children Service.

1.1 In School Education

The services provided under this Output focus on the delivery of education to students in schools enrolled in classes up to Year 10. The purpose of the Output is to provide a range of educational services that will help students develop intellectually, socially, morally, emotionally and physically in a stimulating, inclusive and supportive environment. An essential factor to the success in delivering this Output is that these services be provided within the Department's strategic framework of the Learner at the Centre.

3.12 Education 1.2 Learning Services

A Learning Service supports schools in each of the North-West, North, South and South-East areas of the State. In providing support, Learning Services work collaboratively with schools and through a School Improvement Board appointed by the Minister for Education and Skills. Support includes professional learning across teaching, curriculum and assessment, and operational human resource, finance, and facilities support. Learning Services have a key role in facilitating the sharing of resources, knowledge, innovation and learning between schools and across the State and respond to schools on the basis of their improvement needs.

1.3 Education Performance Services

This Output provides state-wide programs for monitoring and measuring student performance and achievement in literacy, numeracy, assessment and certification for students in the compulsory years of schooling. It is directed towards Tasmanian compliance with national assessment program requirements, and monitoring and reporting educational accountability information for specific purpose programs. It is also responsible for corporate reporting and evaluating and reviewing of educational programs as well as facilitating the collection, storage and utilisation of student and school data.

1.4 Early Years

This Output provides assistance and advice to develop child care services and funds are provided to non-government organisations as a contribution towards operating expenses and capital upgrades through the Child Care Grants Program. Licensing and monitoring all child care services under the Child Care Act 2001 is managed through the Child Care Unit.

1.5 Grants and Financial Assistance

This Output is responsible for Child Care Grants, Sundry Grants, Fees and Scholarships and Student Assistance, Bursaries and Allowances.

Education 3.13 Table 3.4: Performance Information - Output Group 1 Unit of 2006-07) 2007-08) 2008-09) 2009-10) Performance Measure Measure Actual) Actual) Target) Target)

Reading1 % of students at Reading rates against national minimum or above the standard (NMS) Year 3 NMS ….) 92.8) 94.0) 95.0) % of students at Reading rates against national minimum or above the standard (NMS) Year 5 NMS ….) 89.7) 91.0) 92.0) % of students at Reading rates against national minimum or above the standard (NMS) Year 7 NMS ….) 93.9) 95.0) 96.0) % of students at Reading rates against national minimum or above the standard (NMS) Year 9 NMS ….) 93.0) 94.0) 95.0)

Numeracy1 % of students at Numeracy rates against national minimum or above the standard (NMS) Year 3 NMS ….) 96.7) 97.0) 97.5) % of students at Numeracy rates against national minimum or above the standard (NMS) Year 5 NMS ….) 92.1) 93.0) 94.0) % of students at Numeracy rates against national minimum or above the standard (NMS) Year 7 NMS ….) 95.2) 96.0) 97.0) % of students at Numeracy rates against national minimum or above the standard (NMS) Year 9 NMS ….) 92.3) 94.0) 95.0)

Aboriginal Students2 educational Year 3 reading for aboriginal students outcome gap % 5.6) 4.6) 3.5) 2.5) educational Year 5 reading for aboriginal students outcome gap % 3.8) 6.2) 5.0) 4.0) educational Year 7 reading for aboriginal students outcome gap % 14.3) 5.4) 4 0) 3.0) educational Year 9 reading for aboriginal students3 outcome gap % ….) 2.8) 2.5) 2.0) educational Year 3 numeracy for aboriginal students outcome gap % 7.2) 2.3) 2.0) 1.5) educational Year 5 numeracy for aboriginal students outcome gap % 6.8) 5.1) 4.0) 3.0)

3.14 Education Table 3.4: Performance Information - Output Group 1 (continued) Unit of 2006-07) 2007-08) 2008-09) 2009-10) Performance Measure Measure Actual) Actual) Target) Target)

educational Year 7 numeracy for aboriginal students outcome gap % 13.5) 3.1) 2.5) 2.0) educational Year 9 numeracy for aboriginal students3 outcome gap % ….) 4.6) 4.0) 3.0)

Other Licensed child care services Number 272) 285) 305) 290) Percentage of children meeting the Kindergarten Development Check % 74) 75) 76) 78) Percentage of Prep students achieving expected literacy outcomes % na) 83.3) 85) 86) Percentage of Prep students achieving expected literacy outcomes % na) 83.9) 85) 86)

Sources: ABS, Schools Australia, 4221.0. The Department of Education's Corporate Report Data Collection 2005.

Notes: 1. The 2006-07 actual figures for reading and numeracy are not reported. With the introduction of the National Assessment Program – Literacy and Numeracy (NAPLAN) in 2008, the previous measure of performance, national benchmarks, has been replaced by national minimum standards. Since the introduction of NAPLAN, the national minimum standards and bands of achievement will more fully describe the complete range of student performance. Given this new phase of literacy and numeracy reporting, the Department of Education no longer has available comparable benchmark data to report literacy and numeracy results as described in the Tasmania Together targets for indicator 3.2.2 The Department of Education is currently working with the Tasmania Together Board to revise these targets. 2. These performance measures have been established to meet the Council of Australian Governments goal of halving the educational outcomes gap between Aboriginal and non-Aboriginal students within ten years. This measure represents the difference between the achievement for all Tasmanian students and the achievement of Aboriginal students. 3. There is no reported measure for 2006-07 Year 9 students as national literacy and numeracy data was not available for this year group until 2008.

Tasmania Together

Education 3.15 Output Group 2: Post-Compulsory Education and Skills Development

Table 3.5 provides financial information for each Output under Output Group 2. A description of the Outputs follows the table.

Table 3.5: Summary Financial Information - Output Group 2 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Post-Compulsory Education and Skills Development

Expenses by Output 2.1 Skills Development Contestable Funding1 71 318) 83 277) 88 395) 91 690) 81 178) 2.2 Tasmanian Polytechnic2 36 244) 35 744) 36 408) 37 354) 38 415) 2.3 Tasmanian Academy3 12 909) 12 220) 12 929) 14 202) 15 503) 2.4 Post-Compulsory Education in Schools3,4 44 179) 41 484) 41 484) 41 484) 41 484) 2.5 Skills Tasmania5 9 863) 8 506) 8 612) 8 749) 8 909) 2.6 Tasmanian Qualifications Authority 3 703) 3 596) 3 644) 3 706) 3 776) 2.7 Grants and Financial Assistance6 2 290) 1 970) 1 970) 1 970) 1 970) 180 506) 186 797) 193 442) 199 155) 191 235)

Retained Revenue 5 759) 655) 655) 655) 655)

Net Cost of Output Group 174 747) 186 142) 192 787) 198 500) 190 580)

Appropriation 172 087) 184 227) 190 862) 196 797) 188 877)

Notes: 1. The increase in the Skills Development Contestable Funding Output is primarily due to expenditure relating to the National Partnership agreements between the Department and Australian Government on Productivity Places Program ($6.5 million in 2009-10), and Trade Training Centres in Schools ($6.2 million in 2009-10). The Productivity Places Program ceases in 2011-12 resulting in the decrease in this Output in 2012-13. 2. The Tasmanian Polytechnic Output reflects the reclassification of Budget allocations for Post-Compulsory Education activities previously undertaken by TAFE Tasmania and colleges with the implementation of Tasmania Tomorrow. The reduction from the 2008-09 Budget to the 2009-10 Budget reflects the impact of the Government's Budget Management Strategies. 3. The 2009-10 Budget and Forward Estimates include a Budget reduction due to declining enrolment demand. This reduction will be subject to review on the basis of retention performance achieved in the first half of 2009. 4. The Post-Compulsory Education in Schools Output has been maintained at 2009-10 budgeted levels pending the resolution of the transfer of the remaining colleges to the Tasmania Tomorrow model. 5. The decrease in the Skills Tasmania Output in 2009-10 reflects the cessation of miscellaneous Australian Government programs resulting from implementation of the Council of Australian Governments (COAG) Intergovernmental Agreement on Federal Financial Relations. 6. The decrease in the Grants and Financial Assistance Output is due to the cessation of assistance for Group Schemes in 2008-09.

3.16 Education 2.1 Skills Development Contestable Funding

This Output focuses on delivering training to develop knowledge and skills across a wide range of occupations to support the workforce needs of enterprises and provide career development opportunities for individual Tasmanians. Training priorities take into account, among other things, skill shortages in key industries and occupations. Training is purchased under user choice arrangements for apprentices and trainees, competitive tendering and memoranda of understanding with the Tasmanian Skills Institute.

2.2 Tasmanian Polytechnic

The focus of this Output is the purchase of education and training services by the Department and Skills Tasmania from the Tasmanian Polytechnic. The Tasmanian Polytechnic aims to deliver practical learning opportunities with a vocational pathway for both Years 11 and 12 students and mature age students, seeking employment outcomes or entry into university programs.

2.3 Tasmanian Academy

This Output provides for the purchase of education services by the Department from the Tasmanian Academy, which focuses on academic learning, with curriculum and academic pathways for Year 11 and 12 students seeking university entrance.

2.4 Post-Compulsory Education in Schools

This Output focuses on delivery of education to students in district high schools and senior secondary colleges that have not transitioned to the Tasmania Tomorrow model. It provides a range of educational services that will help post-Year 10 students develop intellectually, socially, morally, emotionally and physically in a stimulating, inclusive and supportive environment.

2.5 Skills Tasmania

Skills Tasmania is responsible for developing strategy and policy relating to skills development in Tasmania and for purchasing vocational education and training from the Tasmanian Polytechnic, the Tasmanian Skills Institute and other Registered Training Organisations (RTOs) to support the skill development needs of Tasmanian enterprises and individuals. Skills Tasmania also manages the regulation of apprenticeships and traineeships, provides support services to RTOs and other service providers, and is generally responsible for the development, regulation and administration of the training system in Tasmania.

2.6 Tasmanian Qualifications Authority

The Tasmanian Qualifications Authority is responsible for consolidated statements of qualifications and accreditation and registration in the senior secondary, vocational education and training, and higher education sectors.

2.7 Grants and Financial Assistance

This Output manages the following grants and financial assistance: Senior Secondary Students; Living Away From Home Allowance; Student Assistance; Bursaries and Allowances; Sundry Grants; Fees and Scholarships; Subsidies; Apprentices and Trainees; Group Schemes for Apprentices and Trainees; and Industry Training Advice.

Education 3.17 Table 3.6: Performance Information - Output Group 2 Unit of 2006-07 2007-08 2008-09 2009-10 Performance Measure Measure Actual Actual Target Target

Apparent retention rate Years 7-121 % 64.8 63.3 61.3 70.0 Best Performing Apparent retention rate Years 10-12 (TT) % 65.0 63.7 61.8 State Proportion of people in full or part-time education or training2 % 14.7 15.7 16.5 17.0 Proportion of people aged 20 to 24 in full or part-time education or training2 % 38.3 38.5 39.5 40.0 Percentage of 15 to 19 year-olds not employed, not at school and not in full-time tertiary education (TT) 2 % 9.7 9.6 7.0 5.0 Enrolments in vocational education and training3 Number .… 36 541 39 560 39 320 Course Completions in vocational education and training3 Number .… 9 663 9 700 9 700 Unit/Module completions in vocational education and training3 Number .… 180 845 181 000 181 000 Student Satisfaction – Graduates4 % 90.2 90.0 90.0 90.0 Student Satisfaction – Module Completers4 % 86.1 83.7 85.0 87.0

Sources: ABS, Transition from Education to Work Survey, Department of Education data, Commonwealth State Agreement for Skilling Australia's workforce, National Centre for Vocational Education Research (NCVER), Tasmania Together.

Notes: 1. This measure is derived from national measures of retention. 2. These measures have been revised to use the 'civilian population' as the base (ABS May data). In previous years, the 'education and work' population was used as the basis for calculating the percentages. The 2006-07 actuals have been recast on this basis. 3. This is a commencement of a new series reflecting changes to the funding of Outputs negotiated in the Commonwealth-State funding agreement – National Agreement for Skills and Workforce Development. Enrolment targets also include targeted enrolments under the Productivity Places Program National Partnership. Course completion and Unit/module completion target data are not yet available for the National Partnership and are not included. 4. Student satisfaction is the percentage of students satisfied with the overall quality of training. Source: NCVER.

3.18 Education Output Group 3: Community Knowledge Network

Table 3.7 provides financial information for each Output under Output Group 3. A description of the Outputs follows the table.

Table 3.7: Summary Financial Information - Output Group 3 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Community Knowledge Network

Expenses by Output 3.1 Information Services and Community Learning1 35 544) 34 620) 34 308) 35 099) 35 770) 3.2 Tasmania Archives and Heritage Office 2 782) 3 100) 3 144) 3 240) 3 315) 38 326) 37 720) 37 452) 38 339) 39 085)

Retained Revenue 4 979) 4 844) 4 844) 4 844) 4 844)

Net Cost of Output Group 33 347) 32 876) 32 608) 33 495) 34 241)

Appropriation 30 578) 29 774) 29 505) 30 465) 31 211)

Note: 1. The decrease in the Information Services and Community Learning Output in 2009-10 reflects the impact of the Government's Budget Management Strategies.

3.1 Information Services and Community Learning

This Output focuses on the provision of services that develop life long learning through the provision of Library and State Reference Services combined with the operation of Online Access Centres, Adult and Community Education Programs and Adult Pathway Planning.

3.2 Tasmanian Archives and Heritage Office

This Output includes the services of the Heritage and Tasmanian Information Services in managing Tasmania's Archival and Heritage Collection.

Education 3.19 Table 3.8: Performance Information - Output Group 3 Unit of 2006-07) 2007-08) 2008-09) 2009-10) Performance Measure1 Measure Actual) Actual) Target) Target)

Information enquiries2 Number 679 713) 649 713) 605 000) 593 339) Library items borrowed Number 4 666 366) 4 917 095) 4 800 000) 5 100 000) Number of Tasmanian publications added to the State record3 Number 64 548) 57 944) 15 000) 20 000) Percentage of significant items conserved4(TT) % 70.0) 70.0) 70.0) 70.0) Number of heritage documents and artefacts publicly available in digital format5 (TT) Number 22 515) 33 787) 170 000) 170 000) Adult Education courses undertaken Number ….) 28 695) 28 800) 26 000)

Notes: 1. The current range of key performance measures for the Community Knowledge Network Output Group is under review, following the integration of public libraries, online access centres and Adult Education, and the progressive establishment of Learning and Information Network Centre services. A new performance framework for the Community Knowledge Network will be introduced in 2009-10. 2. Based on the current measure for information enquiries, it is expected that the number of enquiries will continue to decrease as increased use is made by clients of online services. 3. The 2008-09 and 2009-10 targets reflect the plateau of registration of items into the archives control system. Previously high actuals are the result of large data entry projects associated with the Tasmanian Ombudsman's Review of Claims of Abuse of Children in State Care and some one-off project funding for data entry. 4. Progress towards the achievement of this target will be reviewed in 2009-10. 5. This is a cumulative performance measure. The 2008-09 target is significantly higher because digitisation was identified as a priority activity and resources were allocated to expand the program during the 2008-09 reporting period. It is estimated that 160 000 items will be available online by 30 June 2009. Although significant digitisation is planned for 2009-10, this is not apparent in the target due to the types of items that are to be digitised and the way that this is counted. Digitisation of items may produce many images but only account for a small number of documents or artefacts, for example, the digitisation of 300 convict volumes produced 68 000 images but is counted as 300 items. The way this target is defined will be reviewed in 2009-10.

3.20 Education CAPITAL INVESTMENT PROGRAM

Table 3.9 provides financial information for the Department's Capital Investment Program. For more information on the Capital Investment Program, see Chapter 7 in Budget Paper No 1 The Budget.

Table 3.9: Capital Investment Program Estimated) 2009-10) 2010-11) 2011-12) 2012-13) Total) Forward) Forward) Forward) Cost) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

New Projects Albuera Primary School 2 032) ....) 2 032) ....) ....) Beaconsfield Early Learning and Care Centre 1 800) 1 800) ....) ....) ....) Building the Education Revolution 275 800) 151 312) 98 558 ....) ....) Child and Family Centre - Bridgewater 8 000) 2 528) 1 870) 1 520) 1 070) Child and Family Centres 76 060) 27 440) 27 440) 20 498) ....) Community Knowledge Network - Learning and Information Network Centres 14 000) 950) 2 550) 7 000) 3 500) Elizabeth College 2 158) ....) 2 158) ....) ....) Establish a New Learning and Information Network Centre (LINC) 3 568) 1 308) 2 260) ....) ....) Geilston Bay High School 1 320) ....) 1 320) ....) ....) King Island District High School 800) ....) 800) ....) ....) Local Schools Working Together 2 500) 2 500) ....) ....) ....) Reducing Class Sizes from Years 2 to 7 2 250) 450) 450) ....) ....) Senior Secondary School Renewal Program 6 000) 2 000) 2 000) 2 000) ....) Secondary Schools Science Laboratories Upgrade 1 800) 1 000) 800) ....) ....) St Leonards Primary School 750) ....) 750) ....) ....) Taroona High School 1 750) ....) 1 750) ....) ....) ) 191 288) 144 738) 31 018) 4 570)

Continuing Projects Blackmans Bay Primary School 1 800) 1 600) ....) ....) ....) Bridgewater and Southern Midlands Educational Renewal Project 30 000) 9 345) 8 192) 11 800) ....) City Library - Multi-Sites Project 1 500) 500) ....) ....) ....) Deloraine High School 1 500) 650) ....) ....) ....) Howrah Primary School 1 750) 1 540) ....) ....) ....) Huonville High School 2 338) 400) ....) ....) ....) Invermay Primary School 1 906) 600) ....) ....) ....) Kings Meadows High School 1 050) 250) ....) ....) ....) Kingston High School 33 000) 9 500) 13 750) ....) ....) Kingston Primary School 1 350) 500) ....) ....) ....)

Education 3.21 Table 3.9: Capital Investment Program (continued) Estimated) 2009-10) 2010-11) 2011-12) 2012-13) Total) Forward) Forward) Forward) Cost) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Lauderdale Primary School 2 500) 2 000) ....) ....) ....) Margate Primary School 1 200) 600) ....) ....) ....) New Norfolk Primary School 2 591) 1 400) ....) ....) ....) Ogilvie High School 4 140) 3 500) ....) ....) ....) Parklands High School 1 500) 900) ....) ....) ....) Port Dalrymple School 1 845) 995) ....) ....) ....) Renewing Structures and Locations of Schools 5 672) 5 140) ....) ....) ....) Rose Bay High School 3 380) 3 052) ....) ....) ....) Rosebery District High School 2 025) 1 225) ....) ....) ....) Southern Support School and Inclusive Education Training Facility 3 108) 600) ....) ....) ....) Tasmania Tomorrow Statutory Authorities - Infrastructure Support ongoing) 850) 850) 850) 850) Tasmania Tomorrow 7 800) 4 300) 2 500) ....) ....) 49 447) 25 292) 12 650) 850)

Total CIP Allocations 240 735) 170 030) 43 668) 5 420)

The Department's Capital Investment Program (CIP) will increase by $198.9 million from $41.8 million in 2008-09 to $240.7 million in 2009-10. The significant increase is due to increased concentration of capital programs by both the State and Australian Government in response to the Global Financial Crisis. A large focus has been placed on providing schools with new facilities and refurbishments to better meet the needs of 21st century learning. There has also been a focus on facilities that draw community services together such as Learning and Information Network Centres (LINCs) and Child and Family Centres.

Major projects include:

• Beaconsfield Early Learning and Care Centre – $1.8 million has been allocated from the Australian Government to construct an Early Learning and Care Centre at Beaconsfield Primary School.

• Building the Education Revolution – $275.8 million will be invested in Tasmanian Schools as part of the Australian Governments Nation Building – Economic Stimulus Plan, resulting in major modernisation of Tasmanian schools. Infrastructure funding in Round One of Primary Schools for the 21st Century has been secured for 35 Tasmanian Government schools.

• Child and Family Centres (CFCs) - This $76.1 million program is the commencement of an initiative to deliver up to 30 CFCs in Tasmania. CFCs will provide a range of easily-accessible services that support families with the health, care and education of children aged birth to four years, preparing them for a healthy life and success at school. A comprehensive infrastructure scoping process has begun to make sure that CFCs are situated to maximise accessibility. Capital funding of $27.4 million will be provided in

3.22 Education both 2009-10 and 2010-11, with a further $20.5 million in 2011-12 to complete the initiative. This will provide for up to 22 greenfield centres and eight co-located centres.

• Community Knowledge Network – Learning Information Network Centre (LINC) – an additional $3.5 million has been allocated in 2012-13 for the establishment of a further Learning and Information Network Centre (LINC). This funding is in addition to the $3.6 million for the establishment of a LINC under the Building for the Future Infrastructure Package in the 2007-08 Budget, and $10.5 million announced for three LINCs in the 2008-09 Budget. This will result in total funding for five LINCs to be established in regional areas. The LINCs will improve access to skills and training opportunities and engage community members in life long learning. It is estimated that construction of the first of these new LINCs will commence in 2009-10, with the project expected to be completed by 2013.

• Renewing Structures and Locations of Schools – This program commenced in 2008-09 and will accelerate in 2009-10 with $5.1 million expenditure allocated out of the programs total allocation of $5.7 million. This allocation will be used to support groups of schools seeking to renew their structures within school sites to improve educational opportunities for local students.

• Senior Secondary School Renewal – This $6.0 million program will commence in 2009-10 with allocated expenditure of $2.0 million to deliver significant works at a number of secondary and district high schools to modernise and improve the standard of existing secondary school facilities.

• Tasmania Tomorrow – 2009-10 is the second year of a total $7.8 million allocation over three years to enable work to improve and upgrade facilities transferred to the Tasmanian Polytechnic, the Tasmanian Academy and the Tasmanian Skills Institute under Tasmania Tomorrow.

Education 3.23 DETAILED BUDGET STATEMENTS

Table 3.10: Income Statement 2008-09 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Revenue Revenue from Appropriation1 832 863) 1 074 004) 1 033 075) 953 269) 916 696) Interest Revenue2 1 719) 2 886) 3 095) 3 124) 3 124) Grants3 2 268) 9 345) 8 192) ....) ....) Sales of Goods and Services4 43 745) 39 818) 40 905) 43 093) 43 693) 880 595) 1 126 053) 1 085 267) 999 486) 963 513)

Less Expenses Employee Entitlements 512 069 537 558) 555 922) 577 031) 592 590) Superannuation5 53 461 55 108) 64 785) 66 809) 69 192) Depreciation and Amortisation 33 132) 32 843) 34 498) 35 161) 34 767) Grants and Transfer Payments6 105 055) 114 811) 120 946) 124 626) 114 488) Supplies and Consumables7 142 177 147 977) 139 846) 143 148) 143 504) Other Expenses 40 146 40 994) 41 363) 42 182) 42 965) 886 040) 929 291) 957 360) 988 957) 997 506)

Plus Gains/(Losses) Gain/(Loss) on Sale of Non-Financial Assets ....) (3 193) (1 715) ....) ....) ....) (3 193) (1 715) ....) ....)

Equals OPERATING RESULT (5 445) 193 569) 126 192) 10 529) (33 993)

Plus Other Movements in Equity Revaluations of Non-Financial Assets 19 699) 15 780) 16 625) 24 271) 30 704) Other Non-Owner Movements in Equity 13 174) ....) ....) ....) ....) 32 873) 15 780) 16 625) 24 271) 30 704)

Equals COMPREHENSIVE INCOME 27 428) 209 349) 142 817) 34 800) (3 289)

Notes: 1. The increase in Revenue from Appropriation in 2009-10 primarily reflects the change to the administration of Australian Government funding resulting from the Council of Australian Governments (COAG) Intergovernmental Agreement on Federal Financial Relations. 2. The increase in Interest Revenue is primarily due to anticipated increased Cash and Deposits holdings during the year. 3. The movement in Grants reflect the allocation of funding from the Tasmanian Risk Management Fund for the Bridgewater and Southern Midlands Education Renewal project of $9.3 million in 2009-10 and $8.2 million in 2010-11.

3.24 Education 4. The movement in Sales of Goods and Services reflects the change to the administration of Australian Government funding resulting from the Council of Australian Governments (COAG) Intergovernmental Agreement on Federal Financial Relations. 5. The increase in Superannuation in 2010-11 reflects the increase in agency superannuation contributions from 11 per cent to 12.3 per cent effective from 2010-11. 6. The increase in Grants and Transfer Payments primarily reflects the reclassification of payments to the Tasmanian Polytechnic and the Tasmanian Academy, which would previously have been treated as employee entitlements. 7. The movements in Supplies and Consumables reflect expenditure associated with the Digital Education Revolution National Partnership partly offset by the impact of the Government's Budget Management Strategies.

Table 3.11: Revenue from Appropriation 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Annual Appropriation Recurrent1 791 694) 842 614) 871 237) 909 601) 911 276) Works and Services2 33 636) 222 590) 161 838) 43 668) 5 420) 825 330) 1 065 204) 1 033 075) 953 269) 916 696)

Appropriation Carried Forward3 7 533) 8 800) ....) ....) ....)

Total Revenue from Appropriation 832 863) 1 074 004) 1 033 075) 953 269) 916 696)

Notes: 1. The increase in Recurrent Annual Appropriation reflects the change to the administration of Australian Government funding resulting from the Council of Australian Governments (COAG) Intergovernmental Agreement on Federal Financial Relations. 2. The increase in Works and Services Annual Appropriation reflects an increase in the Capital Investment Program primarily due to the Building the Education Revolution and Child and Family Centre projects. 3. The increase in Appropriation Carried Forward in 2009-10 reflects the carry forward of funds under section 8A(2) of the Public Account Act 1986 from, 2008-09 to 2009-10. The carry forward primarily reflects a number of capital projects that have been delayed.

Education 3.25 Table 3.12: Income Statement – Administered 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Revenue Revenue from Appropriation1 42 958) 234 802) 224 144) 201 963) 201 983) Grants1 236 381) 3 923) 1 951) 1 982) 14) Sales of Goods and Services 419) 434) 445) 456) 467) 279 758) 239 159) 226 540) 204 401) 202 464)

Less Expenses Grants and Transfer Payments1 172 958) 234 802) 224 144) 201 963) 201 983) Transfer to the Consolidated Fund1 106 480) 4 357) 2 396) 2 438) 481) Other Expenses 1 000) ....) ....) ....) ....) 280 438) 239 159) 226 540) 204 401) 202 464)

Equals OPERATING RESULT (680) ....) ....) ....) ....)

Plus Other Movements in Equity Revaluations of Non-Financial Assets ....) ....) ....) ....) ....) Other Non-Owner Movements in Equity ....) ....) ....) ....) ....)

Equals COMPREHENSIVE INCOME (680) ....) ....) ....) ....)

Note: 1. The movements in Revenue from Appropriation, Grants, Grants and Transfer Payments, and Transfer to the Consolidated Fund reflect the change to the administration of Australian Government funding resulting from the Council of Australian Governments (COAG) Intergovernmental Agreement on Federal Financial Relations.

3.26 Education Table 3.13: Administered Revenue 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Revenue Collected on Behalf of the Consolidated Fund Commonwealth Recurrent Grants1 106 061) 3 923) 1 951) 1 982) 14) Other Sales of Services 419) 434) 445) 456) 467) 106 480) 4 357) 2 396) 2 438) 481)

Revenue from Appropriation Annual Appropriation1 42 958) 234 802) 224 144) 201 963) 201 983)

Other Revenue Commonwealth Recurrent Grants1 130 320) ….) ….) ….) ….)

Total Administered Revenue 279 758) 239 159) 226 540) 204 401) 202 464)

Note: 1. The movements in Commonwealth Recurrent Grants and Annual Appropriation reflect the change to the administration of Australian Government funding resulting from the Council of Australian Governments (COAG) Intergovernmental Agreement on Federal Financial Relations.

Education 3.27 Table 3.14: Administered Expenses 2008-09] 2009-10] 2010-11] 2011-12] 2012-13] ) ) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Grants and Subsidies Australian Government Investing in Our Schools1 1 000) ....) ....) ....) ....) Commonwealth Grants to Non-Government Schools 130 000) 131 496) 140 994) 151 797) 151 797) Non-Government Schools: Capital Assistance2 1 000) 57 150) 35 450) 1 050) 1 050) Non-Government Schools: Grants 41 572) 45 770) 47 314) 48 730) 48 750) Non-Government Schools: Student Assistance 386) 386) 386) 386) 386) 173 958) 234 802) 224 144) 201 963) 201 983)

Transfer to the Consolidated Fund 106 480) 4 357) 2 396) 2 438) 481)

Total Administered Expenses 280 438) 239 159) 226 540) 204 401) 202 464)

Notes: 1. The decrease in Australian Government Investing in Our Schools is due to the completion of this project in 2008-09. 2. The increase in Non-Government Schools: Capital Assistance in 2009-10 and 2010-11 reflects payments to Non-Government schools for the Building the Education Revolution program.

Australian Government Investing in Our Schools

The Australian Government Investing in Our Schools program provides funding for schools and school associations to purchase equipment or undertake projects to improve and enhance the educational amenity of schools. This program will be completed in 2008-09.

Commonwealth Grants to Non-Government Schools

This item has increased by $1.5 million in 2009-10 and reflects increased Australian Government funding to non-government schools.

Non-Government Schools: Capital Assistance

These grants provide funding to non-government schools and non-government school authorities for assistance with eligible capital projects in accordance with sections 64-70 of the Education Act 1994. An additional $50 000 was allocated to this program during 2008-09 with indexation based on the Building Price Index to apply from 2009-10 onwards. The estimates from 2009-10 also include Australian Government Stimulus funding for the Building the Education Revolution program.

Non-Government Schools: Grants

The 2009-10 allocation is based on projections for both the 2009 Average Government School Recurrent Cost and 2009 enrolments that are made well in advance of the availability of actual figures. Accordingly there is a potential for variations to occur in the actual allocation.

3.28 Education Non-Government Schools: Student Assistance

These grants enable schools to support students in need to meet the costs of educational supplies, spectacles, and special bursaries.

Table 3.15: Balance Sheet as at 30 June 2009) 2010) 2011) 2012) 2013) ) ) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Assets Financial Assets Cash and Deposits1 51 693) 64 177) 65 866) 69 261) 72 654) Receivables 7 008) 8 169) 7 914) 8 168) 7 784) Other Financial Assets 3 612) 4 490) 4 566) 4 644) 4 724) 62 313) 76 836) 78 346) 82 073) 85 162)

Non-Financial Assets Land and Buildings2 869 473) 1 113 890) 1 264 308) 1 294 545) 1 286 912) Plant and Equipment 19 468) 20 184) 20 202) 21 044) 21 635) Heritage and Cultural Assets3 42 458) 46 813) 47 749) 48 704) 49 679) Assets Held for Sale4 407) 5 367) 3 693) 3 693) 3 693) 931 806) 1 186 254) 1 335 952) 1 367 986) 1 361 919)

Total Assets 994 119) 1 263 090) 1 414 298) 1 450 059) 1 447 081)

Liabilities Employee Entitlements5 113 313) 120 204) 128 034) 128 810) 129 000) Payables6 3 890) 5 397) 5 577) 5 757) 5 873) Other Liabilities 12 453) 12 981) 13 362) 13 367) 13 372) Total Liabilities 129 656) 138 582) 146 973) 147 934) 148 245)

NET ASSETS 864 463) 1 124 508) 1 267 325) 1 302 125) 1 298 836)

Equity Accumulated Funds 751 068) 977 006) 1 103 198) 1 113 727) 1 079 734) Asset Revaluation Reserve7 113 395) 147 502) 164 127) 188 398) 219 102) Total Equity 864 463) 1 124 508) 1 267 325) 1 302 125) 1 298 836)

Notes: 1. The increase in Cash and Deposits in 2010 is due to a higher than expected closing balance in 2008. The movement in the Forward Estimates reflects a more accurate estimate of anticipated cash holdings. 2. The increase in Land and Buildings reflects the increase in the Department's Capital Investment Program and the estimated impact of the Building the Education Revolution program. 3. The increase in Heritage and Cultural Assets in 2010 is due to a higher than expected closing balance in 2008. 4. The movements in Assets Held for Sale reflect a review of asset sales projections for the 2009-10 Budget and Forward Estimates.

Education 3.29 5. The increase in Employee Entitlements reflects a more accurate estimate based on current projections. 6. The increase in Payables reflects a more accurate estimate based on current projections. 7. The increase in Asset Revaluation Reserve reflects the revaluation of the Department's land and buildings.

Table 3.16: Balance Sheet as at 30 June – Administered 2009) 2010) 2011) 2012) 2013) ) ) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Assets Financial Assets Cash and Deposits1 3 355) 863) 863) 863) 863) 3 355) 863) 863) 863) 863)

Total Assets 3 355) 863) 863) 863) 863)

NET ASSETS 3 355) 863) 863) 863) 863)

Equity Accumulated Funds 3 355) 863) 863) 863) 863) Total Equity 3 355) 863) 863) 863) 863)

Note: 1. The decrease in Cash and Deposits is due to the cessation of the Australian Government Investing in Our Schools Program.

3.30 Education Table 3.17: Cash Flow Statement 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Cash Flows from Operating Activities Cash Received Appropriation1 825 330) 1 065 204) 1 033 075) 953 269) 916 696) Interest Received2 1 719) 2 886) 3 095) 3 124) 3 124) Grants3 2 268) 9 345) 8 192) ....) ....) Sales of Goods and Services4 43 267) 39 614) 41 160) 42 839) 42 839) GST Receipts 25 000) 24 960) 24 882) 24 893) 24 905) 897 584) 1 142 009) 1 110 404) 1 024 125) 987 564)

Cash Paid Employee Entitlements (504 128) (527 494) (548 092) (576 255) (585 364) Superannuation5 (53 461) (55 108) (64 785) (66 809) (68 412) Grants and Transfer Payments6 (105 055) (114 811) (120 946) (124 626) (114 488) Supplies and Consumables7 (142 133) (147 920) (139 764) (143 442) (143 760) GST Payments (25 000) (24 954) (24 954) (24 967) (24 981) Other Payments (39 721) (40 519) (40 888) (41 707) (42 490) (869 498) (910 806) (939 429) (977 806) (979 495)

Net Cash Flows from Operating Activities 28 086) 231 203) 170 975) 46 319) 8 069)

Cash Flows from Investing Activities Purchase of Fixed Assets8 (37 390) (239 991) (169 286) (42 924) (4 676) Net Cash Flows from Investing Activities (37 390) (239 991) (169 286) (42 924) (4 676)

Net Increase/(Decrease) in Cash Held (9 304) (8 788) 1 689) 3 395) 3 393)

Cash at the Beginning of the Year 60 997) 72 965) 64 177) 65 866) 69 261) Cash at the End of the Year 51 693) 64 177) 65 866) 69 261) 72 654)

Notes: 1. The increase in Appropriation primarily reflects the change to the administration of Australian Government funding resulting from the Council of Australian Governments (COAG) Intergovernmental Agreement on Federal Financial Relations. 2. The increase in Interest Received is primarily due to increased cash and deposits held during the year. 3. The movement in Grants reflect the allocation of funding from the Tasmanian Risk Management Fund for the Bridgewater and Southern Midlands Education Renewal project of $9.3 million in 2009-10 and $8.2 million in 2010-11. 4. The movement in Sales of Goods and Services reflects the change to the administration of Australian Government funding resulting from the Council of Australian Governments (COAG) Intergovernmental Agreement on Federal Financial Relations. 5. The increase in Superannuation in 2010-11 reflects the increase in agency superannuation contributions from 11 per cent to 12.3 per cent effective from 2010-11.

Education 3.31 6. The increase in Grants and Transfer Payments primarily reflects the reclassification of payments to the Tasmanian Polytechnic and the Tasmanian Academy, which would previously have been treated as employee entitlements. 7. The movements in Supplies and Consumables reflect expenditure associated with the Digital Education Revolution National Partnership offset by the effects of the Government's Budget Management Strategies. 8. The increase of Purchases of Fixed Assets in 2009-10 and 2010-11 reflects increased capital expenditure in schools resulting from the Building the Education Revolution project.

Table 3.18: Cash Flow Statement – Administered 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Cash Flows from Operating Activities Cash Received Appropriation1 42 958) 234 802) 224 144) 201 963) 201 983) Grants1 236 381) 3 923) 1 951) 1 982) 14) Sales of Goods and Services 419) 434) 445) 456) 467) 279 758) 239 159) 226 540) 204 401) 202 464)

Cash Paid Grants and Transfer Payments1 (172 958) (234 802) (224 144) (201 963) (201 983) Transfers to the Consolidated Fund1 (106 480) (4 357) (2 396) (2 438) (481) Other Payments (1 000) ....) ....) ....) ....) (280 438) (239 159) (226 540) (204 401) (202 464)

Net Cash Flows From Operating Activities (680) ....) ....) ....) ....)

Net Increase/(Decrease) In Cash Held (680) ....) ....) ....) ....)

Cash at the Beginning of the Year 4 035) 863) 863) 863) 863) Cash at the End of the Year 3 355) 863) 863) 863) 863)

Note: 1. The movements in Appropriation, Grants, Grants and Transfer Payments, and Transfers to the consolidated Fund reflect the change to the administration of Australian Government funding resulting from the Council of Australian Governments (COAG) Intergovernmental Agreement on Federal Financial Relations.

3.32 Education 4 FINANCE-GENERAL

AGENCY OUTLINE

The Finance-General Division is administered by the Department of Treasury and Finance. Expenditure through Finance-General generally reflects whole-of-government activities.

The major activities transacted through Finance-General include the management of the Government's financial assets and liabilities, meeting the Government's pension and other superannuation commitments, the administration of the Tasmanian Risk Management Fund, the management of the Government's light vehicle fleet and property portfolio and payments to Government businesses.

Certain provisions have been made in the Special Deposits and Trust Fund to meet future liabilities of the Government. These include a superannuation provision and a provision within the Tasmanian Risk Management Fund for workers' compensation and other insurable risks in respect of inner-Budget agencies. Further information on the Government's superannuation liabilities and administration of the Tasmanian Risk Management Fund is provided in Chapter 6 of Budget Paper No 1 The Budget.

As a result of presenting information on a gross basis, some of the expenditure shown in Finance-General Outputs, such as expenditure from the Superannuation Provision Account and Special Capital Investment Funds, is also reflected in the Outputs of government departments. Inter-departmental transactions make up part of the revenue and expenditure of a number of Finance-General Output Groups. These transactions are eliminated in consolidating department level information to form sector and other aggregates.

OUTPUT INFORMATION

Outputs of Finance-General are provided under the following Output Groups:

• Output Group 1 - Debt Servicing and Management;

• Output Group 2 - Employee Related Costs;

• Output Group 3 - Government Businesses; and

• Output Group 4 - Miscellaneous.

Finance-General 4.1 Table 4.1: Output Group Expense Summary 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Output Group 1 - Debt Servicing and Management 1.1 Debt Servicing 4 052) 4 432) 4 745) 4 790) 3 837) 1.2 Interest on Sundry Deposits 12 015) 3 860) 4 608) 4 723) 4 803) 1.3 Debt Management 10 469) 10 197) 9 913) 9 624) 9 328) 26 536) 18 489) 19 266) 19 137) 17 968)

Output Group 2 - Employee Related Costs 2.1 Superannuation and Pensions 251 250) 308 421) 304 775) 304 633) 299 710) 2.2 Provision for Agency Cost Reduction Requirements1 ....) 5 625) 7 875) ....) ....) Recoveries from Agencies ....) ....) (1 875) (4 500) (4 500) Boards and Committees Savings ....) (500) (1 000) (1 000) (1 000) 2.4 Other 70) ....) ....) ....) ....) 251 320) 313 546) 309 775) 299 133) 294 210)

Output Group 3 - Government Businesses 3.1 Forestry Tasmania 3 500) 3 300) 3 198) 2 000) 2 000) 3.2 State Fire Commission 3 550) 3 325) 3 325) 3 325) 3 325) 3.4 Government Businesses ....) 875) ....) ....) ....) 7 050) 7 500) 6 523) 5 325) 5 325)

Output Group 4 - Miscellaneous 4.1 Structural and Performance Initiatives Program 1 620) ....) ....) ....) ....) 4.2 Treasurer's Reserve 20 000) 20 000) 20 000) 20 000) 20 000) 4.3 Miscellaneous 11 573) 15 381) 19 212) 19 177) 19 187) 4.4 Payment to Australian Tax Office: GST Administration 15 000) 14 700) 14 700) 14 600) 14 600) 4.5 Tasmanian Risk Management Fund 34 809) 50 862) 51 387) 43 855) 45 996) 4.6 Fleet Management Services 21 325) 21 793) 22 308) 22 725) 23 092) 4.7 Property Management Services 17 272) 17 534) 17 284) 17 284) 17 284) 121 599) 140 270) 144 891) 137 641) 140 159)

Grants and Subsidies 113 375) 124 476) 113 615) 115 424) 118 832)

Special Capital Investment Funds 71 319) 95 560) 111 375) 65 935) 33 547)

TOTAL 591 199) 699 841) 705 445) 642 595) 610 041)

4.2 Finance-General Note: 1. Refer to Table 4.3 for more detailed information regarding the Provision for Agency Cost Reduction Requirements and Other expenses.

Output Group 1: Debt Servicing and Management

Table 4.2 presents financial information for each Output under Output Group 1. A description of the Outputs follows the table.

Table 4.2: Summary Financial Information - Output Group 1 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Debt Servicing and Management

Expenses by Output 1.1 Debt Servicing1 4 052) 4 432) 4 745) 4 790) 3 837) 1.2 Interest on Sundry Deposits2 12 015) 3 860) 4 608) 4 723) 4 803) 1.3 Debt Management 10 469) 10 197) 9 913) 9 624) 9 328) 26 536) 18 489) 19 266) 19 137) 17 968)

Retained Revenue3 10 552) 10 289) 10 012) 9 723) 9 427)

Net Cost of Output Group 15 984) 8 200) 9 254) 9 414) 8 541)

Appropriation4 167 312) 49 970) 63 622) 66 201) 117 894)

Notes: 1. The increase in the Debt Servicing Output in 2009-10 and over the Forward Estimates of 2010-11 and 2011-12 reflects the amortisation of discounts on debt instruments issued between 1990 and 1994. The decrease in Debt Servicing in the 2012-13 Forward Estimate is due to the repayment of maturing debt in that year. 2. The decrease in the Interest on Sundry Deposits Output in 2009-10 primarily reflects a decrease in the estimated interest rate and the declining balances of some interest bearing accounts in the Special Deposits and Trust Fund. 3. Retained Revenue for this Output Group represents interest on housing related debt under various Commonwealth-State Housing Agreements, which is recouped from Housing Tasmania and subsequently remitted to the Australian Government. 4. The 2009-10 Appropriation of $50 million for this Output Group represents external debt servicing costs of $4.4 million and interest payments on accounts in the Special Deposits and Trust Fund of $45.6 million. In 2009-10, interest payments include $41.3 million ($151.2 million in 2008-09) for the payment of interest on balances held by Finance-General in the Special Deposits and Trust Fund and $4.3 million ($12 million in 2008-09) for the payment of interest on balances held by other agencies and trust funds, including $307 000 ($704 000 in 2008-09) for interest on the Tasmanian Community Fund Account. Interest on Finance-General accounts is comprised of interest on the Superannuation Provision Account of $36.9 million ($103.7 million in 2008-09), the Tasmanian Risk Management Fund Account of $4.4 million ($10 million in 2008-09) and the Helsham Agreement Grants Account of $43 000 ($197 000 in 2008-09). The increase in Appropriation in 2012-13 reflects payments to the Finance-General Temporary Debt Repayment Account. In accordance with Australian Accounting Standards, in the process of reporting on the Finance-General Division as a single entity, all intra-entity transactions have been eliminated. Interest paid and payable on balances held by Finance-General in the Special Deposits and Trust Fund is not reflected in the expenses of Output 1.2 or in the expenditure or receipts reported in the Income Statement and Cash Flow Statement.

Finance-General 4.3 1.1 Debt Servicing

This Output meets the costs of servicing and managing the State Government's gross debt portfolio. The Output provides for the interest cost and principal repayments of borrowings.

The State Debt held by the Government consists of Australian Government borrowings incurred under various Commonwealth-State Housing Agreements (CSHAs) and borrowings through the Tasmanian Public Finance Corporation. It is estimated that, as at 30 June 2010, State Debt managed within Finance-General will be $45.9 million in borrowings through Tascorp and $223.3 million in borrowings from the Australian Government under the CSHAs. This debt is included under borrowings in the Balance Sheet for Finance-General.

The estimate of debt servicing expenses for 2009-10, reflecting anticipated payments to Tascorp, is $4.4 million ($4.1 million in 2008-09).

1.2 Interest on Sundry Deposits

This Output provides for the payment of interest on balances held in certain accounts in the Special Deposits and Trust Fund.

The expense of $3.9 million in 2009-10 for this Output ($12 million in 2008-09) is the estimated interest payable on certain accounts held by other agencies and true trust funds held within the Special Deposits and Trust Fund.

1.3 Debt Management

This Output reflects transactions associated with the repayment of Australian Government debt relating to housing activities.

The expense of $10.2 million in 2009-10 in this Output ($10.5 million in 2008-09) represents interest payments to the Australian Government on debt incurred under various CSHAs. It is estimated that Commonwealth-State Housing Agreement Debt will total $223.3 million at 30 June 2010. This debt is included under Borrowings in the Balance Sheet for Finance-General.

Principal repayments by Housing Tasmania of $6.5 million in 2009-10 ($6.3 million in 2008-09), are capital transactions and are therefore not included in the expenses of Output 1.3, or in the expenses reported in the Income Statement, but are reflected within Borrowings in the Balance Sheet and included under Cash Flows from Investing Activities in the Cash Flow Statement.

4.4 Finance-General Output Group 2: Employee Related Costs

Table 4.3 presents financial information for each Output under Output Group 2. A description of the Outputs follows the table.

Table 4.3: Summary Financial Information - Output Group 2 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Employee Related Costs

Expenses by Output 2.1 Superannuation and Pensions1 251 250) 308 421) 304 775) 304 633) 299 710) 2.2 Provision for Agency Cost Reduction Requirements2 ....) 5 625) 7 875) ....) ....) 2.4 Other3 70) ....) ....) ....) ....) 251 320) 314 046) 312 650) 304 633) 299 710)

Less Recoveries from Agencies4 ....) ....) (1 875) (4 500) (4 500) Boards and Committees Savings5 ....) (500) (1 000) (1 000) (1 000) Net Output Expenses 251 320) 313 546) 309 775) 299 133) 294 210)

Retained Revenue6 80 361) 80 386) 99 118) 99 800) 100 422)

Net Cost of Output Group 170 959) 233 160) 210 657) 199 333) 193 788)

Appropriation7 100 463) 107 618) 111 289) 106 247) 111 970)

Notes: 1. The increase in 2009-10 reflects the most recently available actuarial projections of movements in the superannuation liability. 2. This Output represents a provision to fund agencies for certain employee expenses associated with implementing the Government's Budget Management Strategies. Details of the Government's Budget Management Strategies are provided in Chapter 1 of Budget Paper No 2 Government Services. 3. This Output previously provided for the payment of allowances under the Long Service Leave (State Employees) Act 1994 for certain minor State authorities. No claim has been made since 2000, therefore no further Budget provision has been made. 4. Recoveries from Agencies reflect the repayments by agencies of funds utilised to implement the Government's Agency Cost Reduction Requirement Budget Management Strategy. Agencies will be required to repay the funding over a period of three years from 2010-11. 5. Boards and Committees Savings reflect the estimated whole-of-government savings, to be allocated to agencies in 2009-10, that will be achieved through the implementation of efficiencies in Government boards and committees. 6. The 2009-10 Retained Revenue estimate of $80.4 million ($80.4 million in 2008-09) reflects agency contributions to the Superannuation Provision Account in the Special Deposits and Trust Fund of $80.4 million ($80.3 million in 2008-09) and employer contributions from the Department of Justice in relation to the Judges Contributory Pensions Act 1968 of $36 000 ($68 000 in 2008-09). The increase from 2010-11 reflects an increase in contributions to the SPA due to an increase in the employer funding share from 70 per cent to 75 per cent of a member's benefits, as from 1 July 2010, in accordance with advice received from the State Actuary.

Finance-General 4.5 7. The 2009-10 Appropriation for this Output Group of $107.6 million includes $95.8 million Reserved by Law Appropriation relating to the Government's obligations for superannuation payments. In accordance with the requirements of the Retirement Benefits (Parliamentary Superannuation) Regulations 2002, $1.7 million is included in the 2009-10 Reserved by Law Appropriation to meet the emerging cost of the Parliamentary Superannuation Fund and the Parliamentary Retiring Benefits Fund ($2.1 million in 2008-09). The Reserved by Law Appropriation also includes pensions payable under the Solicitor-General Act 1983 of $205 000 ($195 000 in 2008-09), pensions payable under the Judges' Contributory Pensions Act 1968 of $3.1 million ($1.4 million in 2008-09) and pensions payable under the Governor of Tasmania Act 1982 of $77 000 ($67 000 in 2008-09). In addition, this Appropriation includes a contribution of $90.7 million ($89.9 million in 2008-09) to the Superannuation Provision Account held by Finance-General in the Special Deposits and Trust Fund. Payments are made to the Superannuation Provision Account in respect of the superannuation liability reported in Chapter 6 of Budget Paper No 1 The Budget. The $11.8 million remaining appropriation represents a contribution to the Payroll Provision Account in the Special Deposits and Trust Fund of $6.5 million ($6.5 million in 2008-09), a net appropriation of $5.1 million to fund expenses associated with agency cost reduction strategies and a payment in respect of the State's share of higher education superannuation costs of $200 000 ($200 000 in 2008-09). The $6.5 million contribution to the Payroll Provision Account within the Special Deposits and Trust Fund is to meet the cost of the 27th public service pay, which occurs once every 11 years. The $200 000 appropriation for the State's share of higher education superannuation expenses represents the Tasmanian Government's share of the superannuation liability relating to former Tasmanian College of Advanced Education and University employees who were employed by the State Government before responsibility for these institutions was transferred to the Australian Government. In accordance with Australian Accounting Standards, all intra-entity transactions have been eliminated. The contributions to the Superannuation Provision Account and the Payroll Provision Account held by Finance-General in the Special Deposits and Trust Fund are therefore not reflected in this Output Group, or in the expenditure reported in the Income Statement and the Cash Flow Statement.

2.1 Superannuation and Pensions

This Output meets the Government's share of pension and superannuation costs, including a provision for the Government's superannuation liability.

In 2009-10, superannuation and pension expenses are estimated to total $308.4 million, an anticipated increase of $57.1 million in comparison with the budgeted cost in 2008-09 of $251.3 million. The 2009-10 estimate includes cash pension and lump sum payments of $161 million ($149.2 million in 2008-09). The estimated superannuation liability as at 30 June 2010 is $4 476.2 million (excluding the Housing Tasmania pre-July 1994 superannuation liability reflected in the estimates of the Department of Health and Human Services, which it is estimated will be $16.3 million at 30 June 2010, and the State Fire Commission component which is estimated will be $1.3 million at 30 June 2010). This is an increase of $607.5 million from the 2008-09 estimate of the liability as at 30 June 2009. The projected value of the liability reflects the most recent actuarial assessment of the liability.

Agencies will contribute $80.4 million to the Superannuation Provision Account (SPA) in the Special Deposits and Trust Fund in 2009-10, which is included in the Output expenditure of the individual agencies. Agencies and authorities are required to pay into the SPA at a rate determined by the Treasurer, on the advice of the State Actuary. This rate is currently 11 per cent of salary. In addition, inner-Budget agencies are also required to pay into the SPA, a 'gap' payment of two per cent of salary in respect of each permanent employee appointed after 15 May 1999, notwithstanding that these employees are not members of the Retirement Benefits Fund defined benefit scheme.

It is current practice for these contribution rates to be reviewed at each triennial review of the fund. The Actuary has previously advised that this rate would need to increase in the future, due primarily to the ageing membership of the Scheme. After the 30 June 2007 triennial review, the Actuary advised that strong investment returns had increased the fund surplus and there was no need to increase the employer-funded share in the short-term.

4.6 Finance-General Since 30 June 2007, the fund surplus has diminished due to poor investment markets. As a result, consistent with actuarial advice, the employer component of a benefit will increase from 70 per cent to 75 per cent from 1 July 2010 and, accordingly, the employer contribution level will increase to a standard 12.3 per cent of salary. This means that the employer contribution for contributory scheme members will be increased from the current 11 per cent to 12.3 per cent of salary. For accumulation scheme members, agencies superannuation payments will comprise the current employer contribution of 9 per cent of salary and the 'gap payment' to SPA will be increased to 3.3 per cent of salary.

The employer share of pensions and lump sum benefits payable to retiring Retirement Benefits Fund defined benefit scheme members in these agencies and authorities is reimbursed to the Retirement Benefits Fund Board from the SPA. These payments are made notwithstanding that they may relate to periods of employment prior to the establishment of the SPA (1 July 1994).

Further information in relation to the State's superannuation liability can be found in Chapter 6 of Budget Paper No 1 The Budget.

2.2 Provision for Agency Cost Reduction Requirements

This Output represents a provision to fund agencies for certain employee expenses associated with implementing Agency Cost Reduction Requirements (ACRR).

The ACRR is a Government Budget Management Strategy, which will achieve a Budget saving of $16.5 million in 2009-10, increasing to $39.6 million in 2010-11 and thereafter. To assist agencies in achieving the ACRR target, a $13.5 million provision will be established in the Special Deposits and Trust Fund and administered through Finance-General. Agencies may apply to use funds from the provision to manage the initial cost implications of its employment management strategies. Agencies using funds from the ACRR provision will be required to repay these funds. Funds will be required to be repaid over three years commencing in 2010-11, from savings the agency achieves through its employment management strategies.

Boards and Committees Saving

This Output also identifies savings to be allocated to agencies in 2009-10 in relation to a review of boards and committees. A review of boards and committees will be undertaken during 2009-10 to identify efficiencies which could be achieved through changes to the size and composition of boards, the amalgamation of some activities into single boards, or the abolition of boards whose activities could be managed through other means. It is anticipated this Budget Management Strategy will realise savings of $500 000 in 2009-10, increasing to $1 million a year from 2010-11.

2.4 Other

This Output previously provided for the payment of allowances under the Long Service Leave (State Employees) Act 1994 for certain minor State authorities which, on creation as a State authority, became liable for the accrued long service leave entitlements carried over by employees formerly working for a government department. A payment for this purpose was last made in 2000, and it appears highly unlikely that any further claims will be made.

Finance-General 4.7 Output Group 3: Government Businesses

Table 4.4 presents financial information for each Output under Output Group 3. A description of the Outputs follows the table.

Table 4.4: Summary Financial Information – Output Group 3 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Government Businesses

Expenses by Output 3.1 Forestry Tasmania1 3 500) 3 300) 3 198) 2 000) 2 000) 3.2 State Fire Commission2 3 550) 3 325) 3 325) 3 325) 3 325) 3.4 Government Businesses ....) 875) ....) ....) ....) 7 050) 7 500) 6 523) 5 325) 5 325)

Net Cost of Output Group 7 050) 7 500) 6 523) 5 325) 5 325)

Appropriation3 5 550) 11 100) 10 225) 5 325) 5 325)

Notes: 1. The decrease in 2009-10 and over the Forward Estimates reflects an anticipated reduction in the funds drawn down by Forestry Tasmania under the Helsham Agreement. 2. The decrease in the expenses for the State Fire Commission in 2009-10 is due to the cessation of one-off funding of $500 000 in 2008-09 for the purchase of two special operations appliances. This decrease is partly offset by an additional $275 000 Australian Government funding for the bushfire mitigation program. 3. The increase in the 2009-10 Appropriation and 2010-11 Forward Estimate primarily reflects a Consolidated Fund allocation of $4.9 million in those years for equity contributions to Aurora Energy Pty Ltd in support of the Government's strategic partnership agreement with Aurora for the future operation of the Optic Fibre Network. As capital transactions, equity contributions are not reflected in the expenses of this Output Group, but are reflected in the increased value of Equity Investments in the Balance Sheet and included under Cash Flows from Investing Activities in the Cash Flow Statement.

3.1 Forestry Tasmania

A provision of $2 million has been made in 2009-10 ($2 million in 2008-09) for excess fire fighting costs incurred by Forestry Tasmania. This funding will be used in the event of a high cost fire fighting season, if the cost to Forestry Tasmania exceeds the 10-year moving average of variable costs plus any financial reserves set aside from previous years.

In November 1988, the Australian Government agreed to provide $50 million for Intensive Forest Management, Education and Training, and Forestry Tasmania and Industry sunk costs under the Lemonthyme and Southern Forests Agreement (known as the Helsham Agreement). No further funding from the Australian Government is anticipated. In 2009-10, a provision has been made for expenditure of $1.3 million ($1.5 million in 2008-09) from this Account by Forestry Tasmania. Details concerning expenditure of Helsham funds are reported in the Annual Report of Forestry Tasmania.

4.8 Finance-General 3.2 State Fire Commission

A provision has been made for funding of $3.3 million for the State Fire Commission in 2009-10 ($3.6 million in 2008-09). Of this amount, $240 000 has been appropriated as a contingent provision for funding excess fire fighting costs and $275 000 represents funding provided by the Australian Government through the National Partnership Payments arrangements for the Bushfire Mitigation Program.

3.4 Government Businesses

This Output provides for expenses arising from the Government's ownership interests in Government businesses, including the payment of costs related to divestment. The Government will make equity contributions to Aurora Energy Pty Ltd of $2.9 million in 2008-09, $4.9 million in 2009-10 and $4.9 million in 2010-11 in support of the strategic partnership agreement with Aurora for the future operation of the Optic Fibre Network. As capital transactions, equity contributions are not reflected in the expenses of this Output, but are reflected in the increased value of Equity Investments in the Balance Sheet and included under Cash Flows from Investing Activities in the Cash Flow Statement. A provision of $875 000 has also been made in 2009-10 to meet costs relating to the sale of TOTE Tasmania Pty Ltd.

Finance-General 4.9 Output Group 4: Miscellaneous

Table 4.5 presents financial information for each Output under Output Group 4. A description of the Outputs follows the table.

Table 4.5: Summary Financial Information - Output Group 4 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Miscellaneous

Expenses by Output 4.1 Structural and Performance Initiatives Program1 1 620) ....) ....) ....) ....) 4.2 Treasurer's Reserve 20 000) 20 000) 20 000) 20 000) 20 000) 4.3 Miscellaneous2 11 573) 15 381) 19 212) 19 177) 19 187) 4.4 Payment to Australian Tax Office: GST Administration 15 000) 14 700) 14 700) 14 600) 14 600) 4.5 Tasmanian Risk Management Fund3 34 809) 50 862) 51 387) 43 855) 45 996) 4.6 Fleet Management Services 21 325) 21 793) 22 308) 22 725) 23 092) 4.7 Property Management Services 17 272) 17 534) 17 284) 17 284) 17 284) 121 599) 140 270) 144 891) 137 641) 140 159)

Retained Revenue4 71 101) 75 072) 77 834) 80 638) 83 584)

Net Cost of Output Group 50 498) 65 198) 67 057) 57 003) 56 575)

Appropriation5 56 635) 60 293) 64 124) 63 989) 63 999)

Notes: 1. Following the allocation of the final funding for the Motor Registry System redevelopment in 2008-09, the Structural and Performance Initiatives Program Account within the Special Deposits and Trust Fund will be closed. 2. The increase in Miscellaneous in 2009-10 is mainly due to the provision of transitional revenue support to local councils following the creation of the new water and sewerage regional corporations. Returns to Government from the corporations are included as Consolidated Fund Other Recurrent Receipts and shown in Appendix 1 of Budget Paper No 2 Government Services (Volume 2). 3. The increase in the Tasmanian Risk Management Fund is primarily due to anticipated expenditure of $9.3 million in 2009-10 and $8.2 million in 2010-11 associated with the replacement of Bridgewater High School ($636 000 in 2008-09). The remaining increase in expenses in 2009-10 reflects expected increases, on the basis of actuarial advice, in professional liability, medical liability and personal injury claims costs. 4. Retained Revenue of $75.1 million in 2009-10 is comprised of agency contributions to the Tasmanian Risk Management Fund of $37 million ($32.9 million in 2008-09), property lease and rental receipts of $11.4 million ($12.6 million in 2008-09) and vehicle lease and management payments received from agencies of $26.7 million ($25.6 million in 2008-09). 5. The 2009-10 Appropriation of $60.3 million for this Output Group includes an amount of $10 million contingently appropriated to the Treasurer's Reserve under section 11(2)(b) of the Public Account Act 1986 ($10 million in 2008-09), a Reserved by Law statutory provision of $10 million ($10 million in 2008-09) for the Treasurer's Reserve as required by section 11(2) of the Public Account Act 1986, funds to meet Tasmania's share of the cost of the Australian Taxation Office for GST collection and compliance activities of $14.7 million ($15 million in 2008-09), a $675 000 provision for funding water and sewerage reform transition costs to local government ($6 million in 2008-09), a $5 million provision for funding water and sewerage reform revenue guarantee payments, a $5 million

4.10 Finance-General contribution to the Tasmanian Risk Management Fund Account in the Special Deposits and Trust Fund ($5 million in 2008-09), property management expenses of $5.2 million ($5.1 million in 2008-09), $8 million for the Mobile Radio Network Implementation and other miscellaneous payments of $1.7 million. Further information about other payments is contained within the Output descriptions.

4.1 Structural and Performance Initiatives Program

The Structural and Performance Initiatives Program Account within the Special Deposits and Trust Fund was established in the 1995-96 Budget to provide agencies with access to funds to undertake structural improvement, particularly those related to information technology developments, which have the potential to result in significant savings and/or provide for a more efficient allocation of resources.

The final payments from this Account, for the redevelopment of the Motor Registry System, were made in 2008-09. The Account will be closed by 30 June 2009.

4.2 Treasurer's Reserve

An amount of $20 million has been provided in the Treasurer's Reserve in 2009-10 ($20 million in 2008-09) to meet expenditure that could not reasonably be foreseen at the time of developing the 2009-10 Budget and which is essential for efficient financial management.

Amounts spent from the Treasurer's Reserve in 2009-10 will be included in Output expenditure across government departments, and subsequently offset by savings in this Output.

The Treasurer's Reserve comprises:

• a Statutory Provision of $10 million, which is Reserved by Law and requires no further appropriation (section 11(2)(a), Public Account Act 1986); and

• an additional amount of $10 million contingently appropriated in the annual Consolidated Fund Appropriation Act (section 11(2)(b), Public Account Act).

In addition, the Treasurer's Reserve can be supplemented by:

• any surplus or saving in a department's Recurrent Services appropriation which has not been utilised to fund a shortfall within that appropriation (section 11(2)(c), Public Account Act);

• additional Australian Government funds which become available after the Budget is finalised (section 11(2)(d), Public Account Act); and

• net additional recurrent revenue generated within the Consolidated Fund during a financial year that is in excess of the Budget estimate (section 11(2)(e), Public Account Act).

4.3 Miscellaneous

Items of expenditure under this Output relate to an appropriation for revenue equalisation payments and costs arising as a result of State and Local Government Financial Reform; implementation of Water and Sewerage Reform; the upgrade of the whole-of-government Mobile Radio Network; and a number of other miscellaneous payments.

Finance-General 4.11 State and Local Government Financial Reform - Revenue Equalisation Payments

The full application of State Government taxes to Local Government and council rates to State Government Crown properties has been in place for some years now. Glenorchy City Council and Devonport City Council were both forecast at the time to experience net financial outflows as a result. Assistance to the Devonport City Council ended after 2005-06. However, Glenorchy City Council continues to claim assistance while experiencing net financial outflows as a result of the reforms. The Appropriation in 2009-10 for these costs is $80 000.

Telecommunications Infrastructure Project Related Costs

In November 2008, a strategic partnership agreement for the future operation of the Optic Fibre Network was signed between the Government and Aurora Energy Pty Ltd. This arrangement transferred the operations and maintenance agreements to Aurora. The underwriting agreement between the Government and Basslink Pty Ltd in support of the Basslink optic fibre cable has now been terminated by mutual agreement. Consequently, no provision has been made for expenditure for this purpose in the 2009-10 Budget and Forward Estimates. A provision of $3.2 million was included in the 2008-09 Budget, of which only $902 000 was required.

Public Bodies Assistance Act 1971: Subsidy on Debt Charges

This item previously provided for the payment of subsidies to public bodies to assist in meeting the debt charges on loans under the Public Bodies Assistance Act 1971. The Act was repealed in April 2008. During 2008-09, the scheme was wound up and, therefore, no debts remain outstanding. Consequently, no further provision has been made for subsidy payments.

Mobile Radio Network Implementation

This item provides for funding of future phases of the whole-of-government Mobile Radio Network upgrade. $8 million has been included in the 2009-10 allocation for this Output for expenses related to the next phase of the Network upgrade. The Mobile Radio Network upgrade is administered by the Department of Police and Emergency Management.

Natural Disaster Relief

A limited Tasmanian Natural Disaster Relief scheme, administered by the Department of Premier and Cabinet, is funded from within Finance-General. This scheme provides for payments to local government authorities that face the eligible costs of restoring or replacing essential public assets that have been damaged as a direct result of a disaster to a pre-disaster standard. Disasters for which relief is available are those defined under the Australian Government Natural Disaster Relief and Recovery Arrangements (NDRRA) framework, administered by Emergency Management Australia with the Australian Attorney-General's Department. They include any one of, or a combination of, the following natural hazards: bushfire; earthquake; flood; storm; cyclone; storm surge; landslide; tsunami; meteorite strike or tornado.

A provision of $532 000 ($532 000 in 2008-09) has been included in the 2009-10 Budget allocation for Finance-General for payments that may be made to local governments under the Natural Disaster Relief scheme. Partial reimbursement for the State and local government outlays may be subsequently sought from the Australian Government under the NDRRA.

4.12 Finance-General Water and Sewerage Reform – Local Government Transition

A provision of $675 000 has been included in 2009-10 ($6 million in 2008-09) to support the implementation of the reform of Tasmania's water and sewerage sector. This funding will cover implementation costs for transitional assistance to local government for the transfer of responsibility for service delivery from local councils and bulk water authorities to the new water and sewerage regional corporations.

Water and Sewerage Reform – Transitional Revenue Support for Local Government

As owners of the new water and sewerage regional corporations, local councils will receive returns in the form of tax equivalents, guarantee fees and dividends, and will be required to fund the new water and sewerage Community Service Obligation (CSO) arrangements. A number of local councils have expressed concerns about the certainty of these returns together with the impact of the CSO on their budget position in the early years of operation.

Based on modelling utilising the best information available at this time, and depending on the final form of transitional assistance the Government may offer to local councils, payments from the Government to local councils under Output 4.3 will be approximately $5.0 million in 2009-10; $6.9 million in 2010-11; $7.1 million in 2011-12; and $7.2 million in 2012-13. The returns paid to the Government by the water and sewerage regional corporations during this transitional period are estimated to be nil in 2009-10; $1.7 million in 2010-11; $6.2 million in 2011-12; and $9.6 million in 2012-13. These returns are included as Consolidated Fund Other Recurrent Receipts and shown in Appendix 1 of Budget Paper No 2 Government Services (Volume 2).

4.4 Payment to Australian Taxation Office: GST Administration

Under the Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations, the states and territories meet the costs of the Australian Taxation Office in administering the goods and services tax. The states and territories share the GST administration costs on a per capita basis. Tasmania's contribution to collection and compliance costs for 2009-10 is estimated at $14.7 million ($15 million for 2008-09).

4.5 Tasmanian Risk Management Fund

The Tasmanian Government established the Tasmanian Risk Management Fund on 1 January 1999. On 1 July 2001, the Tasmanian State Service Workers' Compensation Scheme merged with the Fund, following which all outstanding liabilities of the Scheme are being met from the Fund. The Fund meets the costs associated with all categories of insurable risk, primarily through self-insurance.

The estimated expenses of $50.9 million for 2009-10 ($34.8 million in 2008-09) represent anticipated administration and claims costs. This amount includes expenditure of $9.3 million in 2009-10 ($636 000 in 2008-09) associated with the replacement of Bridgewater High School. It is anticipated that a further $8.2 million will be expended for this purpose in 2010-11.

4.6 Fleet Management Services

All direct transactions associated with whole-of-government light vehicle fleet management activities are recorded in the Government Car Fleet Account within the Special Deposits and Trust Fund. Revenue in the Government Car Fleet Account is derived from the sale of vehicles and receipts from SG Fleet Pty Limited of lease, registration and insurance payments by agencies, net of the SG Fleet management fee.

Finance-General 4.13 Expenditure from the Government Car Fleet Account includes the purchase of motor vehicles and payment of registration and insurance costs for the vehicle fleet.

Estimated expenses for this Output in 2009-10 of $21.8 million ($21.3 million in 2008-09) include motor vehicle registration expenses of $1.4 million ($1.3 million in 2008-09) and estimated depreciation on motor vehicles of $20.4 million ($20 million in 2008-09).

4.7 Property Management Services

It is estimated that 2009-10 expenditure for Property Management Services will amount to $17.5 million ($17.3 million in 2008-09), including property lease and rental payments of $11.4 million ($11.2 million in 2008-09); power and fuel expenses of $890 000 ($740 000 in 2008-09); rates payments of $380 000 ($380 000 in 2008-09); rent and other expenses of $88 000 ($88 000 in 2008-09); estimated depreciation on government-owned office buildings of $922 000 ($990 000 in 2008-09) and property maintenance expenses totalling $3.9 million ($3.9 million in 2008-09).

Lease management expenses and revenues are transacted through the Agency Accommodation Charges Account in the Special Deposits and Trust Fund. Rent collections are receipted to the Account and subsequently paid to property owners (in the case of leased accommodation), or to the Crown Lands Administration Fund (in the case of government-owned accommodation) managed by the Department of Primary Industries, Parks, Water and Environment.

4.14 Finance-General SPECIAL CAPITAL INVESTMENT FUNDS

Within Finance-General, funds are held for investment in economic and social infrastructure. Below are descriptions of the funds, the balance of each Fund and the projects to be funded in 2009-10 and over the Forward Estimates period (2010-11 to 2012-13). Further details on capital expenditure from the Special Capital Investment Funds are provided in Chapter 7 of Budget Paper No 1 The Budget. Better Roads Fund

A Better Roads Fund was established in 2004-05 with a $25 million allocation provided for a number of projects, including specific maintenance initiatives and Australian Government projects involving a State co-payment.

In 2009-10, $1.7 million will be allocated from the Better Roads Fund for road realignment, shoulder widening and sealing, junction and access improvements, and extension and modification to overtaking lanes on the Bass Highway at Sisters Hills.

It is anticipated that the Better Roads Fund will be fully expended by 30 June 2011.

Table 4.6: Better Roads Fund Estimated 2009-10 2010-11 2011-12 2012-13 Total Forward Forward Forward Cost Budget Estimate Estimate Estimate $'000 $'000 $'000 $'000 $'000

Balance Brought Forward 1 831 150 ......

TOTAL SOURCE OF FUNDS 1 831 150 ......

OUTFLOWS Department of Infrastructure, Energy and Resources Sisters Hills 15 000 1 681 150 ...... TOTAL OUTFLOWS 1 681 ......

Closing Balance 150 ......

Economic and Social Infrastructure Fund

The Economic and Social Infrastructure Fund (ESIF) funds projects assisting economic development and the provision of social infrastructure. Social infrastructure projects relate to education, tourism, parks, heritage, health and housing throughout the State. Economic development projects relate to a range of infrastructure and related developments, including the maintenance of the State's roads and bridges, and water infrastructure.

Finance-General 4.15 A summary of the projects to be funded from the ESIF is provided in Table 4.7.

Table 4.7: Economic and Social Infrastructure Fund Estimated 2009-10 2010-11 2011-12 2012-13 Total Forward Forward Forward Cost Budget Estimate Estimate Estimate $'000 $'000 $'000 $'000 $'000

Balance Brought Forward 16 924 17 591 7 966 6 206

Consolidated Fund: Appropriation 20 366 5 000 6 000 .... TOTAL SOURCE OF FUNDS 37 290 22 591 13 966 6 206

OUTFLOWS Department of Economic Development, Tourism and the Arts AFL Arrangement – Hawthorn Football Club1 16 746 3 601 3 625 990 .... Aurora Stadium 2 000 2 000 ...... Bellerive Oval Lighting 2 000 2 000 ...... Domain Tennis Centre 2 250 1 050 ...... Industry Assistance Program 4 000 600 ...... Tasmanian Museum and Art Gallery 30 000 8 000 6 000 6 000 5 262 17 251 9 625 6 990 5 262

Department of Health and Human Services Hospital Equipment Fund 25 000 1 500 5 000 770 .... 1 500 5 000 770 ....

Department of Premier and Cabinet Main Street Makeover 6 000 648 ...... 648 ......

Department of Primary Industries, Parks, Water and Environment Water Infrastructure2 1 304 300 ...... 300 ......

TOTAL OUTFLOWS 19 699 14 625 7 760 5 262

Closing Balance 17 591 7 966 6 206 944

Notes: 1. The Estimated Total Cost of the AFL Arrangement – Hawthorn Football Club in the 2008-09 Budget Papers was $16.4 million. This cost did not include payment of the $300 000 bonus to the Hawthorn Football Club as a result of winning the 2008 AFL Premiership.

4.16 Finance-General 2. The Estimated Total Cost of the Water Infrastructure Project in the 2008-09 Budget Papers was $1.8 million. The full allocation is no longer required for the Project and has been revised down to $1.3 million.

Economic and Social Infrastructure Fund Projects

The projects to which funding from the ESIF has been allocated in 2009-10 are:

• Aurora Stadium - $2 million will be provided in conjunction with $4 million from the Australian Government to progress a new 2 125 seat grandstand, increasing the seating capabilities to 13 825;

• AFL Arrangement - Hawthorn Football Club - $3.6 million for the Hawthorn Football Club to play AFL games in Tasmania and to promote the State. A total of $16.7 million will be provided from the ESIF under a five year sponsorship agreement;

• Bellerive Oval Lighting - $2 million for the installation of new lights to enable Tasmania to host international one day and 20/20 games, and ensure the future of international cricket in the State;

• Domain Tennis Centre – a further $1.1 million as part of a $2.3 million allocation to build new seating, corporate boxes and media facilities. The upgrade will increase the centre court's capability to host major tennis events;

• Industry Assistance Program - $600 000 is to be provided for grants, subsidies and development support projects to assist those businesses that can demonstrate a net economic benefit to the State;

• Tasmanian Museum and Art Gallery (TMAG) - $8 million of the $30 million allocation is being provided for the redevelopment of the TMAG. The redevelopment will feature preservation of key heritage buildings, an archaeological dig and a new TMAG building. Work to be undertaken in 2009-10 will include architectural concept designs with subsequent documentation and commencement of works funded at the present level;

• Hospital Equipment Fund – $1.5 million to maintain quality equipment in hospitals. A total of $25 million will be provided from the ESIF over five years to purchase new hospital equipment;

• Main Street Makeover Initiative – $648 000 for a program aimed at improving main streets to further develop them into places that local community members and tourists find more inviting and attractive. In future, projects of this type will be funded from the Urban Renewal and Heritage Fund, details of which are provided later in this chapter; and

• Water Infrastructure – a further $300 000 will be allocated for implementation of the $1.3 million Water Development Plan for Tasmania, to identify sustainable water development opportunities and emphasise the need to advance developments towards Tasmania's economic and social objectives.

For details on the capital expenditures from the ESIF, refer to Chapter 7 of Budget Paper No 1 The Budget.

Finance-General 4.17 Hospitals Capital Fund

The Hospitals Capital Fund was established in 2007-08 to provide capital funding for hospitals around the State. In 2009-10, $21.8 million has been allocated from the HCF for the purchase of medical equipment for the North West Regional Hospital ($761 000); the construction of the Launceston General Hospital Car Park ($10 million); and upgrading buildings and infrastructure at the Royal Hobart Hospital ($11 million).

The HCF will provide $100 million over five years to upgrade the Royal Hobart Hospital's buildings and infrastructure, and to improve and expand key services such as intensive care. Future anticipated projects for the Royal Hobart Hospital include:

• creation of a combined clinic area where out-patient functions can be consolidated in one location to improve efficiency and free up space in other parts of the Hospital;

• relocation and expansion of the Ambulatory Care Unit and Oncology Unit;

• expansion of the recovery area in the Day Procedures Unit, including a 23-hour Recovery Unit to provide clinical staff with more flexibility in scheduling elective surgery; and

• upgrading the general wards to optimise bed capacity and bathroom facilities, information and communication services, electrical services, air-conditioning, lift services and plumbing and fire safety.

A summary of the projects to be funded from the Hospitals Capital Fund is provided in Table 4.8.

Table 4.8: Hospitals Capital Fund Estimated 2009-10 2010-11 2011-12 2012-13 Total Forward Forward Forward Cost Budget Estimate Estimate Estimate $'000 $'000 $'000 $'000 $'000

Balance Brought Forward 75 761 54 000 31 500 11 000

Consolidated Fund: Appropriation1 ...... 15 000 TOTAL SOURCE OF FUNDS 75 761 54 000 31 500 26 000

OUTFLOWS Department of Health and Human Services Launceston General Hospital Car Park 15 000 10 000 5 000 ...... North West Regional Hospital Capital and Equipment Upgrade 3 000 761 ...... Royal Hobart Hospital 100 000 11 000 17 500 20 500 26 000 TOTAL OUTFLOWS 21 761 22 500 20 500 26 000

Closing Balance 54 000 31 500 11 000 ….

Note: 1. A further allocation of $25 million will be provided to the Hospitals Capital Fund in 2013-14.

4.18 Finance-General Housing Fund

The Housing Fund was established in 2007-08 with an allocation of $60 million for the purpose of increasing the supply of affordable housing. In 2009-10, it is anticipated that $10 million will be expended from the Housing Fund on affordable housing projects.

Projects funded from the Housing Fund during 2008-09 included:

• the release of land for the development of affordable housing sites ($1 million);

• transitional accommodation for parolees (Bethlehem House - $200 000);

• the commencement of construction of 50 Quick Build Homes ($2.8 million) in 2008-09; and

• a contribution of $6 million to Community Housing Limited under the National Rental Affordability Scheme.

Table 4.9: Housing Fund Estimated 2009-10 2010-11 2011-12 2012-13 Total Forward Forward Forward Cost Budget Estimate Estimate Estimate $'000 $'000 $'000 $'000 $'000

Balance Brought Forward 50 000 40 000 20 000 ....

TOTAL SOURCE OF FUNDS 50 000 40 000 20 000 ....

OUTFLOWS Department of Health and Human Services Housing Fund 60 000 10 000 20 000 20 000 .... TOTAL OUTFLOWS 10 000 20 000 20 000 ....

Closing Balance 40 000 20 000 ......

Finance-General 4.19 Infrastructure Tasmania Fund

In 2007-08, the Infrastructure Tasmania Fund (ITF) was established, with proceeds of $312.9 million from the divestment of Government businesses, to fund major capital projects. During 2007-08, $80 million was transferred from the ITF to a Water Infrastructure Fund administered by the Department of Primary Industries, Parks, Water and Environment, and $25 million was transferred to the Urban Renewal and Heritage Fund.

A summary of the projects to be funded from the ITF is provided in Table 4.10.

Table 4.10: Infrastructure Tasmania Fund Estimated 2009-10 2010-11 2011-12 2012-13 Total Forward Forward Forward Cost Budget Estimate Estimate Estimate $'000 $'000 $'000 $'000 $'000

Balance Brought Forward 92 333 63 808 13 708 33

Consolidated Fund: Appropriation 7 000 ...... TOTAL SOURCE OF FUNDS 99 333 63 808 13 708 33

OUTFLOWS Department of Health and Human Services Health Infrastructure 50 360 11 775 23 750 11 000 .... Health Information Technology 18 500 5 450 6 150 1 500 .... 17 225 29 900 12 500 ....

Department of Infrastructure, Energy and Resources Brighton Transport Hub1 23 000 9 500 8 000 ...... Tarkine Drive 23 000 8 800 12 200 1 175 .... 18 300 20 200 1 175 ....

TOTAL OUTFLOWS 35 525 50 100 13 675 ....

Closing Balance 63 808 13 708 33 33

Note: 1. The total cost of the Brighton Transport Hub project is $79.0 million. The balance of the project's costs ($56.0 million) will be met from the State's Capital Investment Program.

4.20 Finance-General Infrastructure Tasmania Fund Projects

The projects to which funding from the ITF has been allocated in 2009-10 are:

• Health Infrastructure - $11.8 million for infrastructure upgrades including: Bruny Island Community Health Centre ($1.9 million); Clarence GP Super Clinic ($3.5 million); Flinders Island Multi Purpose Centre Upgrade ($1 million); Longford/Westbury Health Centre ($1.8 million); Glenorchy – Tier Three Community Health Service Facility ($1.2 million); King Island Hospital and Health Centre Upgrade ($1 million); Kingston – Tier Three Community Health Centre Facility ($500 000); and Tasmanian Ambulance Stations ($750 000);

• Health Information Technology - $5.5 million for the implementation of information technology projects including: a patient administration system ($1.5 million); messaging and identifier systems ($500 000); Mental Health Services Electronic Client Management and Reporting System ($750 000); LAN and Infrastructure Upgrade ($1 million); Enterprise Storage Solution ($500 000); Child Protection Information Systems Phase Two ($200 000); and Medical Imaging Project ($1 million);

• Brighton Transport Hub - $9.5 million for the development of the Brighton Transport Hub that will improve the efficiency of rail operation, and open up the current Hobart rail yards site at Macquarie Point. Funding of $23.5 million will also be provided from the State's Capital Investment Program in 2009-10 as part of the total allocation of $79 million for the Project; and

• Tarkine Drive - $23 million over four years for the establishment of the Tarkine Drive. The road will link a number of existing road sections in the North West Region to create a tourist road connecting to the Great Nature Trail. Tarkine Drive will provide greater opportunities for visitors to access a number of iconic attractions in the region. The redevelopment will include nature trails, visitor facilities and interpretive services at key sites. It is anticipated that the development will deliver significant economic and community benefits to the region. Royal Hobart Hospital Redevelopment Fund

A Royal Hobart Hospital Redevelopment Fund was established in 2004-05 with a $35 million allocation provided for the purpose of developing and enhancing the facilities at the Royal Hobart Hospital. It is anticipated that the Royal Hobart Hospital Redevelopment Fund will be fully expended by 30 June 2009.

The Hospitals Capital Fund will be used in future to fund the Royal Hobart Hospital Project and other major hospital capital projects.

Finance-General 4.21 Urban Renewal and Heritage Fund

The Urban Renewal and Heritage Fund (URHF) was established in the 2008-09 Budget with a $25 million allocation for the conservation and restoration of heritage assets and the renewal of urban areas in communities throughout Tasmania. Responsibility for administration of the Fund was transferred from the Department of Infrastructure, Energy and Resources to Finance-General during 2008-09.

The Fund aims to facilitate urban/community renewal and heritage conservation works that strengthen and enhance the social, economic and environmental fabric of Tasmanian cities and towns.

A summary of the projects to be funded from the URHF is provided in Table 4.11.

Table 4.11: Urban Renewal and Heritage Fund Estimated 2009-10 2010-11 2011-12 2012-13 Total Forward Forward Forward Cost Budget Estimate Estimate Estimate $'000 $'000 $'000 $'000 $'000

Balance Brought Forward 21 429 14 535 10 535 6 535

TOTAL SOURCE OF FUNDS 21 429 14 535 10 535 6 535

OUTFLOWS Department of Economic Development, Tourism and the Arts Devonport Regional Play Space 300 …. 300 …. …. Devonport Skate Park 75 75 …. …. …. 75 300 …. ….

Department of Infrastructure, Energy and Resources Oatlands Underground Powerlines 270 216 ...... Stanley Underground Powerlines 290 290 ...... Tasman Bridge Cycle and Pedestrian Facilities 505 320 185 ...... 826 185 …. ….

Department of Justice Franklin Wharf Redevelopment 1 000 1 000 ...... 1 000 …. …. ….

Department of Premier and Cabinet Bridport Cultural and Recreation Revitalisation 242 78 …. …. …. 78 …. …. ….

4.22 Finance-General Table 4.11: Urban Renewal and Heritage Fund (continued) Estimated 2009-10 2010-11 2011-12 2012-13 Total Forward Forward Forward Cost Budget Estimate Estimate Estimate $'000 $'000 $'000 $'000 $'000

Department of Primary Industries, Parks, Water and Environment Legerwood Memorial and Recreational Park 60 60 …. …. …. Mt Lyell General Office Essential Maintenance 50 50 …. …. …. Oatlands Gaol Restoration 500 500 …. …. …. Scottsdale Walking Trail Extension 255 255 …. …. …. Swansea Great Short Walk Extension 90 90 …. …. …. Swansea Heritage Museum Redevelopment 250 250 …. …. …. Stanley Town Hall Restoration 410 410 …. …. …. 1 615 …. …. ….

Department of Treasury and Finance Princes Wharf Redevelopment 1 700 1 300 ...... 1 300 ......

Unallocated 2 000 3 515 4 000 2 285

TOTAL OUTFLOWS 6 894 4 000 4 000 2 285

Closing Balance 14 535 10 535 6 535 4 250

Urban Renewal and Heritage Fund Projects

Projects funded from the URHF in 2009-10 include:

• Devonport Skate Park - $75 000 for the upgrade of the existing Devonport Skate Park to address safety and risk issues, and to cater for a range of user groups that use the facility;

• Oatlands Underground Powerlines - $216 000 to enhance the heritage area of Oatlands by removing overhead powerlines and placing them underground;

• Stanley Underground Powerlines - $290 000 to enhance the heritage area of Stanley by removing overhead powerlines and placing them underground;

• Tasman Bridge Cycle and Pedestrian Facilities - $320 000 for the improvement of safety and efficiency of the existing shared cycle and pedestrian facilities;

• Franklin Wharf Redevelopment - $1 million for the redevelopment of Franklin Wharf to make it a more attractive and enjoyable place to visit, where the movement of pedestrians, cyclists and motorists is safe and convenient while maintaining operations that are integral to the working port;

Finance-General 4.23 • Bridport Cultural and Recreation Revitalisation - $78 000 to improve recreational and cultural amenities in Bridport, strengthen the image as a tourist destination and improve pedestrian safety;

• Legerwood Memorial and Recreation Park – $60 000 for the extension of children's play equipment and the implementation of barbeque areas, picnic areas and designated walking areas;

• Mt Lyell General Office Essential Maintenance - $50 000 to restore the heritage listed Office to enable versatile public access and use. Restoration works includes repairs to brick work, resealing and painting windows and replacement of downpipes;

• Oatlands Gaol Restoration - $500 000 for restoration of the Gaoler's residence which has physically deteriorated;

• Scottsdale Walking Trail Extension – $255 000 for the installation of an additional 1.5 kilometres of walking trail, a small footbridge and associated drainage and fencing works from Listers Lane to Copplestone Street;

• Swansea Great Short Walk Extension - $90 000 to extend the existing walking track from the Swansea Bowling Club to the foreshore walkway at the eastern end of Jubilee Beach;

• Swansea Heritage Museum Redevelopment - $250 000 for the redevelopment of the Museum to enable versatile public access and use. The redevelopment will include refurbishment of toilets, disability access and a visitor information centre;

• Stanley Town Hall Restoration - $410 000 for restoration work, including installation of seating, electrical upgrades, window repairs and stage lighting and sound system; and

• Princes Wharf Redevelopment - $1.3 million allocation in 2009-10 as part of a total allocation of $1.7 million to progress the process for the renewal of Princes Wharf Shed No 1, which will enhance access and public usage of the asset, provide greater opportunity for tourism facilities and improve the physical infrastructure.

4.24 Finance-General DETAILED BUDGET STATEMENTS

Table 4.12: Income Statement – Administered 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Revenue Revenue from Appropriation1 531 985) 412 523) 375 345) 364 706) 434 090) Taxation2 926 046) 842 885) 860 226) 902 628) 945 681) Interest Revenue3 258 508) 133 919) 151 378) 150 315) 175 869) Grants4 1 818 968) 2 717 542) 2 647 867) 2 683 107) 2 738 130) Sales of Goods and Services 71 171) 75 142) 77 904) 80 708) 83 654) Other Revenue 80 948) 80 968) 101 374) 106 562) 110 560) 3 687 626) 4 262 979) 4 214 094) 4 288 026) 4 487 984)

Less Expenses Employee Entitlements5 70) 5 625) 6 000) (4 500) (4 500) Superannuation 251 250) 308 421) 304 775) 304 633) 299 710) Depreciation and Amortisation 20 993) 21 273) 21 436) 21 852) 22 219) Borrowing Costs6 26 992) 18 944) 19 721) 19 592) 18 423) Grants and Transfer Payments7 194 047) 221 419) 231 971) 188 167) 159 056) Supplies and Consumables8 96 847) 113 478) 114 628) 105 799) 107 940) Transfer to the Consolidated Fund9 2 999 291) 4 100 191) 3 925 705) 3 818 363) 3 848 773) Other Expenses10 1 000) 10 681) 6 914) 7 052) 7 193) 3 590 490) 4 800 032) 4 631 150) 4 460 958) 4 458 814)

Plus Gains/(Losses) Gain/(Loss) on Investments in GBEs and SOCs 147 015) 137 443) 190 610) 319 545) 305 014) Gain/(Loss) on superannuation11 (24 552) ....) ....) ....) ....) Other Gains(losses)12 (5 845) 4 449) 3 028) (7 481) (8 241) 116 618) 141 892) 193 638) 312 064) 296 773)

Equals OPERATING RESULT 213 754) (395 161) (223 418) 139 132) 325 943)

Plus Other Movements in Equity Revaluations of Non-Financial Assets ....) ....) ....) ....) ....) Other Non-Owner Movements in Equity13 (4 133) (17 827) (1) (2) (2) (4 133) (17 827) (1) (2) (2)

Equals COMPREHENSIVE INCOME 209 621) (412 988) (223 419) 139 130) 325 941)

Finance-General 4.25 Notes: 1. Explanations of significant variations in the Revenue from Appropriation can be found in the Output Group variance explanations. 2. Further information regarding the decrease in Taxation Revenue in 2008-09 can be found in Chapter 5 of Budget Paper No 1 The Budget. 3. Interest Revenue includes interest on investments and dividend and income tax equivalent revenues received from Government businesses. The decrease in estimated Interest Revenue is primarily due to the impact on investment returns of a significant decline in interest rates. Further information in relation to the movements in these revenues is provided in Chapter 4 of Budget Paper No 1 The Budget. 4. The increase in estimated Grants revenue is due to the Commonwealth-State financial relations reforms implemented on 1 January 2009, as a result of the Council of Australian Governments Intergovernmental Agreement on Federal Financial Relations. Under the reforms, all Australian Government Special Purpose Payments and National Partnership Payments are made centrally to the Finance-General Division rather than to individual agencies. This increase is partially offset by a decrease in GST Revenue. Further information in relation to the movements in these revenues is provided in Chapter 4 of Budget Paper No 1 The Budget. 5. The variation in Employee Entitlements represents a provision to fund agencies for certain expenses associated with implementing cost reduction strategies, net of recoveries from agencies from 2010-11. More detailed information on this item can be found in the description of Output 2.2 Provision for Agency Cost Reduction Requirements. 6. Borrowing Costs includes interest payable to agencies on the balances of interest bearing accounts in the Special Deposits and Trust Fund, together with interest payable on borrowings through Tascorp and under various Commonwealth-State Housing Agreements. The generally declining estimate is due to the reduction in interest payable to agencies as a result of the decrease in interest rates together with estimated decreases in the balances of the majority of interest bearing accounts. 7. Grants and Transfer Payments are primarily comprised of grant payments to agencies from the Special Capital Investment Funds, together with other Grants and Subsidies paid by Finance-General. For more information please refer to the Special Capital Investment Fund section earlier in the chapter and the following Administered Expenses section. 8. The increase in Supplies and Consumables is principally due to an estimated increase in claims expenses of the Tasmanian Risk Management Fund. 9. Transfer to the Consolidated Fund relates to revenue collections administered by the Finance-General Division, which is largely comprised of State taxation revenue, returns from Government businesses, Australian Government payments and interest income. More information on these revenues collected on behalf of the Consolidated Fund can be found in Chapter 4, Chapter 5 and Chapter 9 of Budget Paper No 1 The Budget. 10. The increases in Other Expenses are due to the final payment to the Australian Government relating to the Cellar Door Rebate and the introduction of transitional revenue support for councils relating to the water and sewerage reforms. 11. The removal of estimates of Gain/(Loss) on superannuation reflects the reclassification of projected movements in the superannuation liability as superannuation expense or nominal superannuation interest expense. 12. Other Gains/(Losses) reflect revaluation decreases/(increases) related to the Tasmanian Risk Management Fund liability. 13. Other Non-Owner Movements in Equity in 2008-09 and 2009-10 relate to the disposal of Crown properties and the transfer of the proceeds from the sales to the Crown Lands Administration Fund administered by the Department of Primary Industry, Parks, Water and Environment. The minor amounts across the Forward Estimates reflect the correction of system rounding.

4.26 Finance-General Table 4.13: Revenue from Appropriation – Administered 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Annual Appropriation Recurrent 312 551) 272 403) 245 537) 229 779) 277 759) Works and Services1 87 650) 15 750) 1 000) ....) 15 000) 400 201) 288 153) 246 537) 229 779) 292 759)

Reserved by Law Appropriation to the Treasurer's Reserve (Public Account Act 1986) 10 000) 10 000) 10 000) 10 000) 10 000) Contribution to Tasmanian Racing Industry (Gaming Control Act 1993)2 4 498) ....) ....) ....) ....) Contribution to the Superannuation Provision Account (Retirements Benefits Act 1993)3 89 933) 90 700) 95 690) 100 950) 106 500) Payments to Municipalities under the (Local Government (Rates and Charges Remissions) Act 1991)4 18 262) 13 128) 13 607) 14 100) 14 608) Payments under the Retirement Benefits (Parliamentary Superannuation) Regulations 2002 2 145) 1 679) 2 070) 2 174) 2 250) Superannuation Benefits Payable under the Governor of Tasmania Act 1982 67) 77) 82) 87) 92) Superannuation Benefits Payable under the Judges' Contributory Pensions Act 1968 1 353) 3 132) 1 532) 1 610) 1 690) Superannuation Benefits Payable under the Solicitor-General Act 1983 195) 205) 215) 226) 238) Tasmanian Community Fund (Tasmanian Community Fund Act 2005) 5 331) 5 449) 5 612) 5 780) 5 953) 131 784) 124 370) 128 808) 134 927) 141 331)

Total Revenue from Appropriation - Administered 531 985) 412 523) 375 345) 364 706) 434 090)

Notes: 1. The decreased Annual Appropriation for Works and Services primarily reflects a reduction in contributions to the Hospitals Capital Fund to better match anticipated outflows. 2. Contributions to the Tasmanian Racing Industry through Finance-General will cease after 2008-09. Future funding assistance to the Tasmanian Racing Industry will be administered through the Department of Infrastructure, Energy and Resources. 3. The increase in the contribution to the Superannuation Provision Account reflects annual indexation. 4. The decrease in the Reserved by Law Appropriation under the Local Government (Rates and Charges Remissions) Act 1991 is due to the separation of the water and sewerage functions from local governments to the new water and sewerage corporations.

Finance-General 4.27 Table 4.14: Administered Expenses 2008-09] 2009-10] 2010-11] 2011-12] 2012-13] ) ) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Grants and Subsidies Betting Exchange Payments to Racing Industry1 4 498) ....) ....) ....) ....) Australian Government Contribution for Extension of Pensioner Concessions 475) 475) 475) 475) 475) Equalisation Payments and Subsidies2 1 638) 6 388) 735) 785) 839) First Home Owners Scheme3 20 615) 29 680) 20 825) 20 930) 21 497) Local Government: Grants 60 303) 62 624) 65 086) 67 526) 70 307) Other Grants and Subsidies 13) 2) 2) 2) 2) Payments under Local Government (Rates and Charges Remissions) Act 19914 18 262) 13 128) 13 607) 14 100) 14 608) Payments under the Duties Act 2001 350) 350) 250) 250) 250) Payroll Tax Assistance5 1 890) 6 380) 6 440) 4 605) 3 980) Support for Local Government Infrastructure Assistance Program6 ....) ....) 583) 971) 921) Tasmanian Community Fund 5 331) 5 449) 5 612) 5 780) 5 953) 113 375) 124 476) 113 615) 115 424) 118 832)

Transfer to the Consolidated Fund 2 999 291) 4 100 191) 3 925 705) 3 818 363) 3 848 773)

Other Administered Expenses 477 824) 575 365) 591 830) 527 171) 491 209)

Total Administered Expenses 3 590 490) 4 800 032) 4 631 150) 4 460 958) 4 458 814)

Notes: 1. Contributions to the Tasmanian Racing Industry through Finance-General will cease after 2008-09. Future funding assistance to the Tasmanian Racing Industry will be administered through the Department of Infrastructure, Energy and Resources. 2. The increase of $4.8 million in Equalisation Payments and Subsidies in 2009-10 is primarily due to the expected finalisation of payments to the Australian Government relating to the Wine Equalisation Tax through exercising an option to pay out the net present value of the estimated future payment obligations. 3. The increase in the State funded First Home Owners Scheme grants of $9.1 million in 2009-10 is due to an expected increase in demand resulting from the Australian Government's First Home Owner Boost initiative. 4. The decrease in expected payments under the Local Government (Rates and Charges Remissions) Act 1991 is due to the reduction in Pensioner Rates Remissions arising from the transfer of water and sewerage functions from councils to the new water and sewerage corporations. 5. The $4.5 million increase in estimated Payroll Tax Assistance includes an additional $3 million in 2009-10 for the reinstated Tasmanian Trainee and Apprentice Incentive Scheme ($1 million in 2008-09) and $2 million for the Employment Incentive Scheme (Payroll Tax Rebate) introduced in the 2009-10 Budget. These increases are partly offset by decreases of $320 000 in the IT Industry Payroll Tax Assistance scheme, which will cease from 30 June 2010, and $150 000 in the Approved Group Trainers Payroll Tax Assistance scheme which ceased from 1 July 2008. 6. The Appropriation for Support for Local Government Infrastructure Assistance Program represents the Government's initiative, announced in this Budget, to promote additional infrastructure investment by local government through the provision of Loan Interest Subsidies.

4.28 Finance-General Betting Exchange Payments to the Racing Industry

Following the introduction of the new racing industry governance structure on 1 January 2009, with the transfer of the racing operations of TOTE to the newly created Tasmanian Racing Board, and the Government's decision to sell the TOTE wagering operation, the betting exchange funding to the industry will no longer be provided through Finance-General. The current racing industry funding arrangements are being replaced with a funding deed between the Government and the Tasmanian Racing Board, under which all funding to the industry will be provided through the Department of Infrastructure, Energy and Resources.

Australian Government Contribution for Extension of Pensioner Concessions

The purpose of this item is to provide non-Budget sector agencies with funds to cover the additional cost of maintaining existing concession arrangements following an extension by the Australian Government from 1 April 1993 of eligibility for the Pensioner Concession Card. The balance of the Australian Government assistance for this purpose is absorbed within the outlays of General Government Sector agencies providing concessions.

Equalisation Payments and Subsidies

The purpose of this item is to provide funds for the State's contribution to the national wine equalisation tax producers rebate scheme and the Tasmanian low alcohol cider subsidy. The aggregate cost of providing these subsidies in 2009-10 is expected to be $6.4 million ($1.6 million in 2008-09).

Direct subsidies on cellar door wine sales from the Tasmanian Government ceased from 2004-05. However, all of the expenditure previously allocated for the state scheme is now provided to the Australian Government in support of the replacement national scheme. It is anticipated that the final payments for this purpose, totalling $5.7 million, will be made to the Australian Government in 2009-10 ($1 million in 2008-09). The increase in 2009-10 is due to the State accepting an option provided by the Australian Government to extinguish future payment obligations through payment of the net present value of the State's expected future cellar door rebate savings.

Funding of $688 000 is included in 2009-10 ($638 000 in 2008-09) for the provision of a subsidy of 15 per cent of the pre-tax wholesale value of Tasmanian produced cider with an alcoholic content not exceeding 6.5 per cent.

First Home Owners Grant Scheme

As part of the Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations, the states and territories fund and administer a First Home Owners Grant (FHOG) scheme. The scheme was designed to offset the impact of the introduction of the GST. The FHOG scheme commenced on 1 July 2000. First home purchasers who meet the eligibility criteria are entitled to a $7 000 grant.

In October 2008, the Australian Government announced the First Home Owners Boost (FHOB). The FHOB provides for one-off payments to eligible first home buyers. The First Home Owners Boost is funded by the Australian Government but is administered by the states and territories. First home purchasers who meet the eligibility criteria are entitled to an additional $7 000 for existing homes or $14 000 for new homes. In the Australian Government's 2009-10 Budget, it was announced that the FHOB would be continued for six months after 30 June 2009 but would be halved after three months.

Finance-General 4.29 It is estimated that the cost of providing FHOG scheme grants will be $29.7 million in 2009-10 (excluding FHOB payments on behalf of the Australian Government), an increase of $9.1 million above the original 2008-09 Budget estimate of $20.6 million. The increase in 2009-10 is due to estimated higher demand for FHOG scheme grants caused by the current FHOG Boost initiative of the Australian Government. This initiative is expected to conclude in December 2009.

Local Government Grants

Local Government Grants are comprised of two components: general purpose funding and identified local road funds. Under the Australian Local Government (Financial Assistance) Act 1995, the Australian Government each year provides funds to the states for on-passing as general purpose grants to local government. The distribution of these funds between states and territories is on an equal per capita basis, and between councils is on the basis of recommendations made by the State Grants Commission, according to the principle of Horizontal Fiscal Equalisation.

Expenditure under this item is equal to Australian Government payments to the State for local government. While the preliminary estimate for 2009-10 is $62.6 million ($60.3 million in 2008-09), the final level of the 2009-10 grant will depend upon the Consumer Price Index outcome for the year to March 2010 and final estimates of population figures as at 31 December 2009.

Other Grants and Subsidies

Child Care Centres - Grants

This grant payment previously provided financial assistance to child care centres that met established criteria through the provision of a grant equivalent to their payroll tax liability. In June 2008, this grant was discontinued as a result of a review of payroll tax assistance arrangements. A provision of $10 000 was included in the 2008-09 Budget allocation to allow for timing delays with the application for payment of the grant. No payments for this purpose were required in 2008-09 and no further Budget provision has been made.

Other Subsidies on Borrowings

An amount of $2 000 ($3 000 in 2008-09) has been provided for a subsidy to the Municipality of Sorell on interest costs on borrowings under the Midway Point Improvement Act 1975. A total amount of $3.5 million was borrowed by the Government, on behalf of the Council, at an interest rate of 9.8 per cent, for the improvement of streets and the provision of a storm water drainage system at Midway Point.

The loan is expected to be repaid in full by 2014-15.

Payments under the Local Government (Rates and Charges Remissions) Act 1991

In accordance with the provisions of the Local Government (Rates and Charges Remissions) Act 1991, local authorities are required to remit 30 per cent of general rates and water and sewerage charges levied on eligible pensioners, up to an annual maximum, for their principal place of residence. The annual maximum is indexed annually by the Consumer Price Index. Local authorities are subsequently reimbursed from Finance-General. Eligible pensioners are residential property owners and must at least hold a current Australian Government Pensioner Concession Card. In the 2008-09 Budget, the rates remission was extended to Health Care Card holders.

4.30 Finance-General The cost of providing pensioner remissions increases year on year due to increases in rates and charges imposed by local authorities and growth in the total pool of eligible pensioners. From 1 July 2009, the maximum remission will be $374 to eligible pensioners who are not customers of a regional water corporation (up from $366 in 2008-09), or $262 for those that are customers of the corporations.

Payments under the Duties Act 2001

Duty refunds are provided in relation to the purchase of land upon which a first home is subsequently built. To qualify for a duty refund, full duty on the land purchase is first required to be paid. Land owners may then apply for a duty refund of up to $2 400 upon satisfaction of the requirements for a grant under the FHOG scheme, in relation to a first home constructed upon land that was purchased with a dutiable value of up to $175 000. Land owners have two years from the date of the land purchase agreement to complete their home construction and a subsequent three months to apply for the duty refund. The estimated payments under this Output in 2009-10 will be $350 000 ($350 000 in 2008-09).

Payroll Tax Assistance

The purpose of this grant is to provide financial assistance to organisations subject to various eligibility criteria. Some organisations receive assistance by way of grants equivalent to their payroll tax liability and are entitled to assistance when their payroll expenditure exceeds the threshold limit, currently $1.01 million per annum. Other organisations, which have a payroll tax liability and employ apprentices, are entitled to receive assistance equivalent to the payroll tax liability accruing on apprentices' wages.

IT Industry Assistance

The total budgeted expenditure for 2009-10 is $400 000 ($720 000 in 2008-09). The rebate will be reduced by 25 per cent from 1 July 2009 and will cease from 30 June 2010. The resulting savings have been transferred to the Department of Economic Development, Tourism and the Arts to be used together with additional agency funding to provide increased funding for the successful Enterprise Growth program. Funding under this program is available to all industry sectors and is not dependent upon the payment of payroll tax by an organisation. As a result, small Tasmanian businesses will also benefit from this assistance.

Tasmanian Trainees and Apprentice Incentive Scheme

During 2008-09, the Government reinstated the Tasmanian Trainee and Apprentice Incentive Scheme (TTAIS), with an effective date of 1 July 2008. This program provides industry development and training incentives through the payroll tax system.

The allocation for 2009-10 is $4 million ($1 million in 2008-09).

New Employee Payroll Tax Relief

Payroll tax relief will also be made available to all employers liable for payroll tax, by way of rebate for the payroll tax payable for any new positions created during the period from 11 June 2009 to 30 June 2010. The Employment Incentive Scheme (Payroll Tax Rebate) Bill 2009 will be introduced to Parliament during the 2009-10 Budget session to give effect to this payroll tax relief initiative. The rebate will be payable on payroll tax incurred from 1 July 2009 to 30 June 2011. The measure is designed to encourage employers to support employment at a time when employment is under threat due to the current economic environment.

Finance-General 4.31 Eligible employers will be required to declare their total taxable wages, including wages paid to new employees, in payroll tax returns and to pay the tax by the due date. A rebate equivalent to the full payroll tax liability on wages paid to an eligible employee in 2009-10 and 2010-11 will then be paid.

The net cost of the rebate is expected to be $2 million in 2009-10 and $2.4 million in 2010-11, with a further cost of $625 000 in 2011-12 relating to rebates paid in that year with respect to claims made for 2010-11.

Approved Group Trainers

Assistance provided under this scheme ceased from 1 July 2008. This assistance has been replaced by a direct exemption from payroll tax for trainee and apprentice wages for approved group trainers.

Support for Local Government Infrastructure Investment

This Output provides for the Government's newly announced initiative to promote local government infrastructure investment through the provision of targeted subsidies to councils to offset loan interest costs.

The new Loan Interest Subsidy Scheme will commence from the first quarter of 2009-10, with councils being requested to submit applications for assistance for specific projects, in accordance with the Government's approved guidelines. Assistance will be provided to local governments based on the interest costs incurred during over a three year period for eligible projects. Under the program, the Government will provide interest subsidies to local government over three years for eligible projects.

Tasmanian Community Fund

The Tasmanian Community Fund (TCF) is regulated by the Tasmanian Community Fund Act 2005 to make grants to worthwhile community organisations. Section 5 of the Act outlines the amounts that are to be paid into the TCF. The amounts appropriated to the Fund are a Reserved by Law appropriation. The Act provides that the amount paid to the Fund each financial year is equal to the previous year's allocation, indexed by the Hobart March CPI outcome for the current year.

The TCF is a designated trust administered by the Finance-General Division on behalf of the TCF Board. Transactions processed by Finance-General on behalf of the TCF are not revenue or expenses of the Finance-General Division. All TCF transactions, other than the Reserved by Law grant to the TCF, are treated as true trust items and excluded from the financial reports of the Finance-General Division.

The estimated Reserved by Law grant to the TCF in 2009-10 is $5.4 million ($5.3 million in 2008-09). The estimated balance of the Fund under the current arrangements at 30 June 2010 is $10.2 million, an increase of $686 000 from the expected balance of the Fund at 30 June 2009.

In the 2008-09 Budget, the Government announced its intention that the TCF and the Community Support Levy be combined in a single fund to provide a more strategic and flexible community grants program.

A new community grants program will seek to:

• maximise value from the available level of public funding;

• maximise flexibility and responsiveness to community needs and avoid the potential for any funding overlap;

• ensure governance arrangements and accountability are of the highest standard; and

• maximise economies of scale through a common client base, wherever possible.

4.32 Finance-General A Discussion Paper on the development of a new Community Grants Program has been released for public comment. Further information on the activities and finances of the TCF can be found in the Annual Report of the TCF on its website at www.tascomfund.org.

Table 4.15: Balance Sheet as at 30 June – Administered 2009) 2010) 2011) 2012) 2013) ) ) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Assets Financial Assets Cash and Deposits1 1 258 699) 612 339) 226 662) 161 268) 285 264) Investments 240 637) 232 453) 225 670) 218 745) 211 664) Equity Investments2 3 822 541) 3 966 026) 4 161 536) 4 481 081) 4 786 095) Receivables 67 224) 61 259) 61 259) 61 259) 61 259) Other Financial Assets3 4 663) 7 687) 8 320) 8 953) 9 586) 5 393 764) 4 879 764) 4 683 447) 4 931 306) 5 353 868)

Non-Financial Assets Land and Buildings4 49 845) 30 972) 30 400) 29 828) 29 256) Infrastructure 29 592) 31 039) 31 039) 31 039) 31 039) Plant and Equipment 64 862) 69 731) 70 809) 72 294) 74 155) Assets Held for Sale5 1 000) 1 600) 1 800) 1 850) 1 850) 145 299) 133 342) 134 048) 135 011) 136 300)

Total Assets 5 539 063) 5 013 106) 4 817 495) 5 066 317) 5 490 168)

Liabilities Borrowings6 606 922) 563 175) 468 685) 454 880) 443 310) Superannuation7 3 868 710) 4 476 150) 4 601 516) 4 717 542) 4 818 752) Payables8 924) 3 245) 3 245) 3 245) 3 245) Other Liabilities 170 345) 166 955) 163 887) 171 358) 179 628) Total Liabilities 4 646 901) 5 209 525) 5 237 333) 5 347 025) 5 444 935)

NET ASSETS 892 162) (196 419) (419 838) (280 708) 45 233)

Equity Accumulated Funds 877 092) (211 489) (438 908) (299 778) 26 163) Asset Revaluation Reserve 15 070) 15 070) 15 070) 15 070) 15 070) Other Equity ....) ....) 4 000) 4 000) 4 000) Total Equity 892 162) (196 419) (419 838) (280 708) 45 233)

Notes: 1. The decrease of $646.4 million in Cash and Deposits in 2009-10 primarily reflects an estimated decrease in Revenue, in particular the decline in Goods and Services Tax revenue and State taxation.

Finance-General 4.33 2. Equity Investments represents the Government's equity interest in Government owned businesses measured as the consolidated value of their net assets. The projected increase in the value of Equity Investments is primarily due to the revaluation of assets held by Government owned businesses. 3. The increases in Other Financial Assets are due to increases in Accrued Revenues and Tax Assets (net receivable GST input tax credits) consistent with the actual 30 June 2008 outcomes. 4. The decrease in Land and Buildings is due to the expected sale of land and buildings during 2009-10. 5. Assets held for sale represents the estimated value of motor vehicles held for sale by Finance-General at 30 June each year. The increase from 2009-10 is primarily due to an adjustment to the 2008-09 opening balance to reflect the actual 30 June 2008 outcome. 6. Borrowings consist of Australian Government borrowings incurred under various Commonwealth-State Housing Agreements, borrowings through Tascorp and monies held on behalf of agencies in the Special Deposits and Trust Fund. The budgeted cash holding of agencies at 30 June 2010 is $291.2 million. The decreases to 30 June 2010 and 30 June 2011 primarily reflect budgeted decreases in cash holdings by agencies. Beyond 30 June 2011, the decreases represent repayment of debt partially offset by small increases in budgeted cash held on behalf of agencies. 7. The increase in the Superannuation liability reflects the most recently available actuarial projections of the liability. Given the recent volatility in financial markets, there is a possibility of significant variations between the budgeted superannuation liability and expenses and the outcomes for 2009-10 and the Forward Estimates. 8. The increase in Payables reflects an adjustment to the 2008-09 opening balance to reflect the actual 30 June 2008 outcome.

4.34 Finance-General Table 4.16: Cash Flow Statement – Administered 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Cash Flows from Operating Activities Cash Received Appropriation 400 201) 288 153) 246 537) 229 779) 292 759) Reserved by Law 131 784) 124 370) 128 808) 134 927) 141 331) Taxation 926 046) 842 885) 860 226) 902 628) 945 681) Interest Received 104 305) 33 300) 33 163) 29 856) 36 054) Grants 1 818 968) 2 717 542) 2 647 867) 2 683 107) 2 738 130) Sales of Goods and Services 71 171) 75 142) 77 904) 80 708) 83 654) GST Receipts 13 500) 13 500) 13 500) 13 500) 13 500) Other Receipts 235 101) 181 042) 218 857) 226 289) 249 643) 3 701 076) 4 275 934) 4 226 862) 4 300 794) 4 500 752)

Cash Paid Employee Entitlements (70) (5 625) (6 000) 4 500) 4 500) Superannuation (149 249) (161 003) (179 409) (188 607) (198 500) Borrowing Costs (26 630) (18 798) (19 306) (19 147) (17 939) Grants and Transfer Payments (194 048) (221 419) (231 971) (188 167) (159 056) Supplies and Consumables (97 302) (113 933) (115 083) (106 254) (108 395) Transfers to the Consolidated Fund (2 999 291) (4 100 191) (3 925 705) (3 818 363) (3 848 773) GST Payments (13 500) (13 500) (13 500) (13 500) (13 500) Other Payments (1 000) (10 681) (6 914) (7 052) (7 193) (3 481 090) (4 645 150) (4 497 888) (4 336 590) (4 348 856)

Net Cash Flows From Operating Activities 219 986) (369 216) (271 026) (35 796) 151 896)

Cash Flows From Investing Activities Sale of Fixed Assets 26 550) 26 287) 27 587) 28 405) 29 249) Purchase of Fixed Assets (44 945) (48 281) (49 729) (51 221) (52 758) Net Purchase of Investments ....) (4 900) (4 900) ....) ....) Net Customer Loans (Granted)/Repaid 6 511) 6 747) 6 882) 7 024) 7 180) Net Cash From Investing Activities (11 884) (20 147) (20 160) (15 792) (16 329)

Finance-General 4.35 Table 4.16: Cash Flow Statement – Administered (continued) 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Cash Flows from Financing Activities Net Borrowings (81 486) (77 996) (94 491) (13 806) (11 571) Net Cash Flows from Financing Activities (81 486) (77 996) (94 491) (13 806) (11 571)

Net Increase/(Decrease) In Cash Held 126 616) (467 359) (385 677) (65 394) 123 996)

Cash at the Beginning of the Year 1 132 083) 1 079 698) 612 339) 226 662) 161 268) Cash at the End of the Year 1 258 699) 612 339) 226 662) 161 268) 285 264)

4.36 Finance-General 5 DEPARTMENT OF HEALTH AND HUMAN SERVICES

AGENCY OUTLINE

The Department of Health and Human Services is responsible for delivering integrated services that maintain and improve the health and wellbeing of Tasmanians.

By providing responsive, high quality, integrated and patient/client focused services, the Department aims to place the health and human service system on a sustainable footing and to make the most effective use of available resources.

The Department coordinates the delivery of its services across Tasmania through a network of facilities, community services and home-based care; it reports to the Minister for Health, Hon Lara Giddings MP, and the Minister for Human Services, Hon Lin Thorp MLC.

The principal responsibilities of the Department include the delivery of:

• high quality, safe, sustainable and efficient health services through the public hospital system, primary and community health services, including mental health, oral health and correctional health services and ambulance services;

• health promotion and protection through emergency management, public health and related preventative services;

• care for older Tasmanians, as well as support and assistance to enable them to remain living independently in their own homes;

• a network of alcohol and drug prevention and treatment services;

• a range of accommodation and support services aimed at enhancing the quality of life for people with a disability;

• statutory responsibilities for vulnerable children and young people in relation to child protection and juvenile justice;

• a wide range of community services for children and their families, including early intervention, family support services and child health services; and

• secure, affordable housing and support to low income Tasmanians, as well as accommodation and support for people experiencing homelessness.

This chapter provides the Department's financial information for 2009-10 and the Forward Estimates period (2010-11 to 2012-13). Further information about the Department is provided at: http://www.dhhs.tas.gov.au.

Health and Human Services 5.1 MAJOR INITIATIVES

Table 5.1 provides a summary of the Budget and Forward Estimate allocations for major initiatives.

Table 5.1: Major Initiatives Statement 2009-10) 2010-11) 2011-12) 2012-13) ) Forward) Forward) Forward) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000)

Ambulance Service – Patient Transport 8 250) 11 250) 13 250) 15 250) Clarence GP Superclinic and Integrated Care Centre 8 000) 9 500) ....) ....) Disability Services Industry Wage Agreement 7 000) 7 000) 7 000) 7 000) Health Information Technology 5 450) 6 150) 1 500) ....) Health Infrastructure 11 775) 23 750) 11 000) ....) Hobart Homelessness Project 1 000) 5 600) 1 000) 2 000) Housing Fund 10 000) 20 000) 20 000) ....) Launceston General Hospital Acute Medical and Surgical Services Unit 15 000) 16 500) 7 500) 1 000) Launceston General Hospital Car Park 10 000) 5 000) ....) ....) Launceston General Hospital Emergency Department 8 055) 3 160) ....) ....) Launceston Integrated Care Centre 5 550) 11 700) ....) ....) Nation Building - Economic Stimulus Plan: Social Housing 94 916) 40 652) 7 273) ....) Remote Indigenous National Partnership Payment 4 892) 2 137) 3 142) 2 744) Reviews and Reforms 20 000) 20 000) 20 000) 20 000) Royal Hobart Hospital 11 000) 17 500) 20 500) 26 000) Strengthening Community Service Organisation Fund 250) ....) ....) ....)

Ambulance Service – Patient Transport

This initiative provides funding of $48.0 million over four years to support the commitment from Tasmania's Health Plan to ensure access for the people of Tasmania to sustainable health services, regardless of where they live. The strategy provides a new funding base for the Tasmanian Ambulance Service, building on the one-off funding of $5.0 million provided in the 2008-09 Budget. It also assists in funding the implementation of the recommendations of the Banscott review of current Tasmanian patient transport services and the Sharley review of Tasmanian medical retrieval services. The funding will enhance patient transport services and health-related accommodation assistance for those people, and their carers, who need to travel to health care services based outside their local community. Additional funding of $8.3 million is available in 2009-10 to ensure sustainable funding of the Tasmanian Ambulance Service.

Clarence GP Superclinic and Integrated Care Centre (ICC)

Tasmania's Health Plan identified the development of the Clarence Health Centre as a necessary element in relieving demand pressures on acute health services and improving services for people with chronic disease. In 2008-09, the Australian Government provided part-funding for the Clarence GP Superclinic/ICC

5.2 Health and Human Services as a priority for Tasmania. The proposed GP Superclinic/ICC will combine services from existing facilities and provide new models of care for persons currently receiving treatment at the Royal Hobart Hospital and other Departmental service locations. The project includes an allocation of $4.5 million in 2009-10 from the Australian Government, and has allocations of $3.5 million in 2009-10, and $9.5 million in 2010-11 from the Infrastructure Tasmania Fund (Health Infrastructure). This funding will enable the development of the facility as an ICC aligned with the GP Superclinic model.

Disability Services Industry Wages Agreement

In 2008, the Tasmanian Industrial Commission ratified the Disability Services Industry Wages Agreement 2008 for improved wages and conditions for Disability Support Workers in the Community Sector. The Government has agreed to the provision of an assistance package to help disability service providers who are party to the agreement, and are receiving grant funding from the Department of Health and Human Services, to meet their commitment to lift wages as a result of the recently ratified industrial agreement. The assistance package will take effect from 1 July 2009.

Health Information Technology

Funding of $18.5 million has been allocated over four years from the Infrastructure Tasmania Fund to support the development of integrated health information systems and related infrastructure in the Department to enable and support reform in health service delivery. Funding of $5.5 million is allocated in 2009-10 for the implementation of information technology projects including: a patient administration system ($1.5 million); messaging and identifier systems ($500 000); Mental Health Services Electronic Client Management and Reporting System ($750 000); LAN and Infrastructure Upgrade ($1.0 million); Enterprise Storage Solution ($500 000); Child Protection Information Systems Phase Two ($200 000); and Medical Imaging Project ($1.0 million).

Health Infrastructure

Funding of $50.4 million has been allocated over four years from the Infrastructure Tasmania Fund to implement a series of capital investment projects. Funding of $11.8 million is allocated in 2009-10 for infrastructure upgrades including: Bruny Island Community Health Centre ($1.9 million); Clarence GP Superclinic and Integrated Care Centre ($3.5 million); Flinders Island Multi Purpose Centre Upgrade ($1.0 million); Longford/Westbury Health Centre ($1.8 million); Glenorchy – Tier Three Community Health Service Facility ($1.2 million); King Island Hospital and Health Centre Upgrade ($1.0 million); Kingston – Tier Three Community Health Centre Facility ($500 000); and Tasmanian Ambulance Stations ($750 000).

Hobart Homelessness Facility

Funding of $9.6 million is provided for the construction of a 45 unit housing development and support service in Hobart's inner city. The facility will be Tasmania's first Common Ground type housing development, offering accommodation and support services such as mental health, social and vocational support services to help homeless people return to a stable life. The facility will be the first in Tasmania to be developed and run under the Common Ground principles. Funding of $1.0 million is allocated in 2009-10 for this project.

Health and Human Services 5.3 Housing Fund

The Housing Fund was established in 2007-08 with an allocation of $60.0 million for the purpose of increasing the supply of affordable housing. In 2009-10, it is anticipated that a further $10.0 million will be expended from the Housing Fund on public housing projects.

Projects funded from the Housing Fund and commencing during 2008-09 include:

• the release of land for the development of affordable housing sites ($1.0 million);

• transitional accommodation for parolees (Bethlehem House - $200 000);

• the commencement of construction of 50 Quick Build Homes ($8.0 million); and

• a contribution of $6.0 million to Community Housing Limited under the National Rental Affordability Scheme.

Launceston General Hospital Acute Medical and Surgical Services Unit

The Australian Government will provide $40.0 million over four years from the Health and Hospitals Fund for the construction of a new Acute Medical Services Unit, upgrade of the Surgical Services Unit and Intensive Care Unit, a range of ward upgrades throughout the hospital, and information technology to support these new facilities. The new Acute Medical Services Unit, in conjunction with the Department of Emergency Medicine, will address the throughput of patients from emergency admissions through to an acute medical unit providing assessment, early treatment and care planning. Works planned for the Surgical Services Unit will address the elective waiting list and other service expansions.

Launceston General Hospital Car Park

Since the late 1990s, car parking needs at the LGH have increased significantly due to increasing hospital throughput and an increase in nursing and medical staffing numbers. With redevelopment of the old LGH site, impending construction of the Integrated Care Centre, expansion of acute services, and rapidly increasing demand for services, there is a need for additional car parking at the LGH. As a result, $15.0 million over two years has been allocated to the construction of a new multi-storey car park which will create an additional 400 car parking spaces. Following completion of the project, the Government will seek to progress the commercialisation of the operations of the car park.

Launceston General Hospital Emergency Department

An amount of $12.0 million has been allocated for redevelopment of the Department of Emergency Medicine at the Launceston General Hospital. The funding provided will increase the available floor space and create a short stay observation ward and separate triage area. This project has already commenced, and remaining funding of $11.2 million will be spent over the next two years. The expected completion date for the redevelopment is June 2010.

Launceston Integrated Care Centre

The Launceston Integrated Care Centre (ICC) will combine services from existing facilities and provide new models of care for persons currently receiving treatment at the Launceston General Hospital and other Departmental service locations.

5.4 Health and Human Services A key aim of an ICC is to treat patients without requiring admission to an acute hospital and provide greater certainty of access for clients because it focuses on non-emergency services, including a broad range of non-admitted primary, secondary and tertiary services, and short-stay elective services and specialised subacute services.

The Launceston ICC project has an allocation from the Australian Government of $5.6 million in 2009-10, and $8.7 million in 2010-11, and an allocation of $3.0 million in 2010-11 from the Infrastructure Tasmania Fund (Health Infrastructure), providing a total allocation of $11.7 million in 2010-11.

Nation Building – Economic Stimulus Plan: Social Housing

The Social Housing initiative provides for the construction of new social housing stock and repairs and maintenance of existing stock and will draw funding from the Nation Building – Economic Stimulus Plan. It will provide a boost to public housing and housing administered by the not-for-profit community sector in the State and is designed to assist low income Tasmanians who are homeless or struggling in the private rental market. Total funding for social housing in Tasmania is $148.9 million from 2008-09 to 2011-12, with $94.9 million being provided in 2009-10. This includes $4.7 million in 2009-10 for repairs and maintenance of existing housing stock and $90.3 million for construction of new housing.

Remote Indigenous Housing

Through the Remote Indigenous Housing National Partnership Agreement, the Australian Government, the States and the Northern Territory will work together with Indigenous communities to improve Indigenous Australians' access to government services, including early childhood, health, housing and welfare services. For Tasmania, the communities of Cape Barren and Flinders Islands qualify under the "remote" guidelines within the Agreement. Funding for Tasmania from 2008-09 to 2012-13 is $14.6 million, with $4.9 million provided in 2009-10.

Reviews and Reforms

Funding of $80.0 million over four years is for Reviews and Reforms. The desired implementation outcomes include:

• providing an improved Alcohol and Drug Sector in Tasmania to ensure Tasmanians with an alcohol, tobacco and/or other drug issues have access to appropriate, timely, and effective services based on contemporary best practice;

• rebuilding the Tasmanian Out of Home Care system for children in need of care and protection. Reform of this system is part of the wider reform to the child protection system and will involve the staged transition of services to the non-government sector;

• developing a family support service that is able to meet the needs of vulnerable children, young people and their families through community-based local service networks that allow for early intervention and support;

• implementing structural and service practice reforms in the provision of Disability Services, including reforming the service systems framework, introducing a population-based funding and service delivery model, and restructuring regional access and coordination;

Health and Human Services 5.5 • through Tasmania's Health Plan, redesigning the Primary Health System to focus more on prevention and community-based care, reserving acute hospital resources for people who cannot be managed in non-hospital settings; and

• supporting the implementation of the Clinical Services Plan, with a focus on the development of multidisciplinary, system-wide clinical networks to facilitate increased collaboration, service integration, monitoring and development.

Royal Hobart Hospital

The Hospitals Capital Fund will provide $100.0 million over five years to address the Royal Hobart Hospital's ageing buildings and infrastructure, and to improve and expand key services such as intensive care. Future anticipated projects for the Royal Hobart Hospital include:

• creation of a combined clinic area where out-patient functions can be consolidated in one location to improve efficiency and free up space in other parts of the Hospital;

• relocation and expansion of the Ambulatory Care Unit and Oncology Unit;

• expansion of the recovery area in the Day Procedures Unit, including a 23-hour Recovery Unit to provide clinical staff with more flexibility in scheduling elective surgery; and

In 2009-10, $11.0 million is available for this Project.

Strengthening Community Service Organisation Fund

In 2009-10, $250 000 will be provided for the Strengthening Community Organisation Fund. This Fund is aimed at assisting non-government community service organisations to achieve efficiencies, improve structures, explore sharing resources and improved governance and financial management systems. This is particularly important in the current economic environment. Non-government community service organisations will then be able to submit funding applications for projects which meet the aims of the Fund. The Fund will help these vital organisations to be able to direct more of their existing resources to vital service delivery.

Climate Change

The Department continues to implement a range of climate change and energy savings initiatives during 2009-10. The total cost of implementing these initiatives will be incorporated into the relevant projects. Initiatives include the following:

• The application of national Green Star standards to new capital works projects wherever practical. With commencement of construction in May 2009, the new Bruny Island Community Centre will be a zero energy building returning excess energy to the grid, as well as incorporating on-site renewable materials and energy efficiency design features.

• The conversion of plant at the Launceston General Hospital from LPG and bunker fuel to natural gas. The conversion will be completed by July 2009 and will achieve a greater than 16.0 per cent reduction in emissions.

5.6 Health and Human Services • A range of energy saving measures will be negotiated with building owners when seeking new or extended accommodation leases. These measures will include appropriate "green lease schedules" based on National Australian Built Environment Rating System (NABERS) principles. These measures include items such as time switching on major plant and equipment, lighting upgrades, the provision of flexible, open plan spaces for the efficient use of available space when providing new work spaces for departmental staff and bicycle racks.

• Since March 2008, all new and replacement operational vehicles must be selected from the four cylinder or small to medium size six cylinder range (3.5 litres in engine capacity or less) available on the Government Contract, with a focus on the most economical option.

Housing Tasmania is currently reviewing residential building guidelines to inform strategies to reduce energy use which includes:

• use of energy efficient appliances; and

• installation of water conserving taps, shower heads and toilets.

Health and Human Services 5.7 OUTPUT INFORMATION

Outputs of the Department of Health and Human Services are provided under the following Output Groups:

• Output Group 1 - Acute Health Services;

• Output Group 2 - Community Health Services;

• Output Group 3 - Human Services; and

• Output Group 4 - Independent Children's Review Services.

Table 5.2 provides an Output Group Expense Summary for the Department of Health and Human Services.

Table 5.2: Output Group Expense Summary1 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Minister for Health

Output Group 1 - Acute Health Services 1.1 Clinical Support Services2 34 547) 37 836) 38 335) 39 444) 39 659) 1.2 Medical Services3 294 926) 343 397) 335 721) 340 421) 340 945) 1.3 Surgical Services3 200 433) 220 758) 215 315) 218 508) 219 031) 1.4 Women's and Children Services4 89 223) 99 041) 96 198) 96 993) 96 966) 1.5 Diagnostic and Pharmacy Services5 92 165) 105 857) 106 073) 109 057) 110 596) 1.6 Ambulance Services6 44 406) 50 378) 55 308) 57 367) 59 854) 1.7 Forensic Medicine Services7 1 803) 1 919) 1 935) 1 985) 2 006) 757 503) 859 186) 848 885) 863 775) 869 057)

Output Group 2 - Community Health Services 2.1 Primary Health Services8 163 310) 168 834) 174 859) 181 474) 184 815) 2.2 Oral Health Services9 23 084) 27 323) 27 828) 25 255) 25 370) 2.3 Population Health Services10 31 391) 24 800) 25 212) 25 992) 26 119) 2.4 Mental Health Services11 115 817) 129 029) 131 231) 135 385) 136 177) 333 602) 349 986) 359 130) 368 106) 372 481)

Output Group 4 - Independent Children's Review Services 4.1 Office of the Commissioner for Children 616) 647) 663) 689) 693)

Capital Investment Program 862) ....) ....) ....) ....)

Special Capital Investment Funds 8 448) 3 950) ....) ....) ....)

5.8 Health and Human Services Table 5.2: Output Group Expense Summary1 (continued) 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Minister for Human Services

Output Group 3 - Human Services 3.1 Children and Family Services12 92 903) 92 315) 92 796) 90 473) 90 222) 3.2 Youth Justice Services 14 482) 14 435) 14 832) 15 275) 15 274) 3.3 Disability Services13 133 708) 141 982) 153 574) 162 321) 166 662) 3.4 Housing Services14 141 855) 147 779) 148 155) 151 492) 152 462) 382 948) 396 511) 409 357) 419 561) 424 620)

Grants and Subsidies15 32 220) 35 016) 22 156) 22 754) 23 387)

Capital Investment Program16 5 708) 1 903) 1 883) 770) 770)

TOTAL 1 521 907) 1 647 199) 1 642 074) 1 675 655) 1 691 008)

Notes: 1. The Department's 2009-10 Budget and Forward Estimates include the impact of the Government's Budget Management Strategies. Details of the Budget Management Strategies are provided in Chapter 1 of Budget Paper No 2 Government Services. 2. The increase in Clinical Support Services in 2009-10 primarily reflects expenditure associated with the Australian Government funded Mersey Community Hospital and increased salary costs. 3. The increases in the Medical Services and the Surgical Services Outputs in 2009-10 reflect expenditure associated with the Australian Government funded Mersey Community Hospital, increased salary costs, additional funding provided under the National Healthcare Agreement and depreciation of plant and equipment. The movement in 2010-11 primarily reflects the cessation of once-off Australian Government funding for health care in 2009-10. 4. The increase in Women's and Children's Services in 2009-10 reflects the funding profile for the 2006 Election commitment 'More Staff at the Royal Hobart Hospital', expenditure associated with the Australian Government funded Mersey Community Hospital and increased salary costs. The movement in 2010-11 primarily reflects the cessation of once-off Australian Government funding for health care provided in 2009-10. 5. The increase in the Diagnostic and Pharmacy Services Output in 2009-10 reflects expenditure associated with the Australian Government funded Mersey Community Hospital, expenditure of additional funding under the National Healthcare Agreement and increased salary costs. 6. The increase in the Ambulance Services Output in 2009-10 reflects additional expenditure for ambulance and patient transport costs and increased salary costs. 7. The increase in Forensic Medicine Services in 2009-10 reflects increased salary costs. 8. The increase in Primary Health Services in 2009-10 reflects increased salary costs and an increase in expenditure for Home and Community Care. 9. The increase in Oral Health Services reflects expenditure associated with the Australian Government funded Dental Health Program and increased salary costs. 10. The decrease in Population Health Services primarily reflects a change in the administrative arrangements for Australian Government grants relating to vaccines, partially offset by increased salary costs. 11. In 2009-10, State-wide Specialist Services will be amalgamated with Mental Health Services. The increase in this Output in 2009-10 is due to increased expenditure in areas of Alcohol, Tobacco and Other Drugs services as part of the Reviews and Reforms initiative and increased salary costs. 12. The decrease in the Children and Family Services Output reflects anticipated efficiencies through major reforms including Out of Home Care, Family Support Services and Child Protection. 13. The increase in the Disability Services Output reflects additional expenditure relating to pay rises for 1 500 disability support workers across the State, expenditure relating to additional funding provided under the National Disability Agreement, and the implementation of the Reviews and Reforms initiative.

Health and Human Services 5.9 14. The increase in Housing Services reflects expenditure associated with the Remote Indigenous National Housing and Homelessness National Partnership Agreements between Tasmania and the Australian Government increased salary costs. 15. The decrease in Grants and Subsidies in 2010-11 reflects the finalisation of funding associated with the Children Abused in Care scheme. 16. The reductions in Capital Investment Program (CIP) expenses reflect changes in the classification of CIP funded projects between expenses and capital acquisition. Total CIP expenditure is detailed in Table 5.11.

Output Group 1: Acute Health Services

Table 5.3 presents financial information for each Output under Output Group 1. A description of the Outputs follows the table.

Table 5.3: Summary Financial Information - Output Group 1 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) ) )Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Acute Health Services

Expenses by Output1 1.1 Clinical Support Services2 34 547) 37 836) 38 335) 39 444) 39 659) 1.2 Medical Services3 294 926) 343 397) 335 721) 340 421) 340 945) 1.3 Surgical Services3 200 433) 220 758) 215 315) 218 508) 219 031) 1.4 Women's and Children Services4 89 223) 99 041) 96 198) 96 993) 96 966) 1.5 Diagnostic and Pharmacy Services5 92 165) 105 857) 106 073) 109 057) 110 596) 1.6 Ambulance Services6 44 406) 50 378) 55 308) 57 367) 59 854) 1.7 Forensic Medicine Services 1 803) 1 919) 1 935) 1 985) 2 006) 757 503) 859 186) 848 885) 863 775) 869 057)

Retained Revenue7 86 480) 144 583) 146 269) 148 094) 150 055)

Net Cost of Output Group 671 023) 714 603) 702 616) 715 681) 719 002)

Appropriation 644 985) 699 096) 671 085) 685 092) 687 891)

5.10 Health and Human Services 5. The increase in Diagnostic and Pharmacy Services in 2009-10 reflects expenditure associated with the Australian Government funded Mersey Community Hospital, additional funding under the National Healthcare Agreement and increased salary costs. 6. The increase in Ambulance Services in 2009-10 reflects additional expenditure for ambulance and patient transport costs and increased salary costs. 7. The increase in Retained Revenue reflects additional revenue received by the State from the Australian Government for the operation of the Mersey Community Hospital.

1.1 Clinical Support Services

This Output provides health professional services such as physiotherapy, occupational therapy, speech pathology, podiatry, social work and nutrition.

1.2 Medical Services

This Output provides general and specialist medical services, medical outpatient clinics, emergency medicine and radiation oncology services.

1.3 Surgical Services

This Output provides emergency and elective surgical services, including services contracted to the private sector and surgical outpatient clinics.

1.4. Women's and Children Services

This Output provides obstetrics and gynaecological services, neonatal intensive care, paediatrics and paediatric surgery.

1.5 Diagnostic and Pharmacy Services

This Output provides pharmacy, pathology and imaging services.

1.6 Ambulance Services

This Output provides emergency ambulance care and transport services to all urgent and priority cases, including medical emergencies, road accidents, industrial, marine and other accidents. It also provides a specialised non-urgent patient transport service between private and public hospitals, nursing homes, private residences, diagnostic facilities and other institutions.

1.7 Forensic Medicine Services

This Output provides forensic and medical services, forensic pathology and clinical forensic medicine.

Health and Human Services 5.11 Table 5.4: Performance Information - Output Group 1 Unit of 2006-07 2007-08 2008-09 2009-10 Performance Measure Measure Actual Actual Target Target

Acute Hospitals Admitted patients – weighted separations – all hospitals1 Number 91 156 92 110 94 166 94 200 Department of Emergency Medicine presentations – all hospitals1 Number 97 687 101 998 106 266 108 514 Outpatient Department – occasions of service – all hospitals1,2 Number 783 095 803 474 813 816 852 239 Average length of stay2 Days 6.6 6.5 6.2 6.3 Day surgery rate – all hospitals2 % 61.4 61.4 61.4 59.5 Percentage of elective surgery (multi-day stay) patients admitted on the day of surgery – all hospitals % 82.9 77.8 84.0 85.0 Proportions of births by Caesarean Section – all hospitals % 27.4 25.3 25.4 26.5 Unplanned readmissions within 28 Days – all hospitals % 3.4 3.4 3.4 3.4 Patients who were seen within the recommended timeframe for DEM Australian Triage Scale Category 1 (immediate) – all hospitals2 % 93.2 98.0 100.0 100.0 Patients who were seen within the recommended timeframe for DEM Australian Triage Scale Category 2 (10 minutes) – all hospitals2 % 68.2 73.5 80.0 80.0 Urgent patients admitted within 30 days for elective surgery – all hospitals % 75.0 76.0 90.0 100.0 Median waiting times for elective patients admitted from the waiting list – all hospitals (TT)3 Days 38.0 38.0 35.0 38.0 Waiting list – all hospitals Number 7 919 8 620 8 950 8 620 Salaried Medical Officers per 1 000 people: public hospitals Number 1.1 1.1 1.1 1.1 Nurses per 1 000 People: public hospitals Number 4.6 4.5 4.5 4.5 Recurrent expenditure per person (public hospitals) $ 1 232.6 1 202.3 1 250.0 1 250.0 Recurrent cost per case mix adjusted separation (including depreciation) $ 4 209 4 390 4 601 4 450

5.12 Health and Human Services Table 5.4: Performance Information - Output Group 1 (continued) Unit of 2006-07 2007-08 2008-09 2009-10 Performance Measure Measure Actual Actual Target Target

Ambulance Total Ambulance responses Number 62 756 62 844 64 446 65 124 Emergency Ambulance responses Number 31 032 31 516 32 447 32 867 Satisfaction with Ambulance Services % 97.0 96.0 97.0 97.0 Emergency response times (state-wide) Minutes 10.5 10.5 10.0 10.0 Emergency response times (Hobart)4 Minutes 9.5 9.6 9.5 9.5 Emergency response times (Launceston)4 Minutes 9.6 9.5 9.5 9.5 Emergency response times (Devonport) Minutes 8.2 8.4 8.4 8.4 Emergency response times (Burnie) Minutes 8.4 8.1 8.1 8.1 Ambulance Service expenditure per person $ 68.2 72.8 89.0 91.0

Notes: 1. These are projections. As these indicators are dependant on the number of people who present at public hospitals, a target cannot be set. The projections are based on the average annual increase in hospital attendances. 2. Actual figures for 2006-07 have been updated following a review of data. 3. This measure is the same measure used for Tasmania Together (TT). 4. The response times for all the major centres assumes no ramping, no increase in case load or changes in case mix type.

Performance Information Comments

Acute Hospitals

The demand for acute health services has risen steadily over the past few years. This is due to the increasing availability of effective technology, the increase in the number of older people in Tasmania and an increase in the number of people with chronic health conditions requiring acute intervention. In 2006-07, this resulted in an increase in service activity across all three hospitals which continued in 2007-08. Table 5.4 indicates that activity has increased across a number of indicators, including admitted patients, Department of Emergency Medicine (DEM) presentations and outpatient occasions of service. The Mersey Community Hospital (MCH) was under Australian Government management from 1 October 2007 to 31 August 2008, and is currently owned by the Australian Government. Therefore, all of the figures in Table 5.4 exclude MCH data.

The number of patients admitted from the elective surgery waiting list for the 12 months to 30 June 2008 showed a slight increase state-wide when compared to the same period in the previous year. A major element of the Department's focus on elective surgery is the joint Australian Government and Tasmanian Elective Surgery Waiting List Improvement Plan, which aimed to treat an additional 895 patients who have waited longer than the clinically recommended time by the end of 2008-09. The work being undertaken through this Plan and through sustained reform to more effectively manage long waiting patients will see the median waiting time of admitted patients rise in the short-term as the long waiting patients are put through the system.

The number of people on the waiting lists in all of the public hospitals increased by 8.9 per cent in the 12 months to June 2008 to 8 620, compared to 7 919 for the same period to June 2007. Increase in demand

Health and Human Services 5.13 for elective surgery is expected to continue across Tasmania due to our ageing population with increasing rates of chronic disease.

The demand on DEMs continues to increase as can be seen from the significant increase in DEM presentations between 2006-07 and 2007-08. The percentage of patients seen within the recommended timeframe for DEM Australian Triage Categories 1 and 2 increased slightly in 2007-08. The redevelopment of the DEMs at both the RHH and LGH has helped to achieve this outcome.

The percentage of Category 2 patients seen state-wide within the recommended time frames increased to 73.5 per cent in the 12 months to 30 June 2008, compared to 68.2 per cent in the same period in the previous year.

Ambulance

The expected increase in the number of ambulance responses is largely due to the ageing of the population and an increase in the number of people with chronic conditions who are cared for at home and who require transport to hospital for acute episodes. The capacity of the ambulance service has increased in recent years through the provision of additional staff, ambulance stations and ambulance vehicles. Total ambulance responses (emergency, urgent and non-urgent cases) in 2007-08 remained consistent with the previous year. Over 50 per cent of the ambulance responses were emergency cases and the median response time to these cases has remained steady at 10.5 minutes state-wide, but is lower in urban areas.

Tasmania Together

5.14 Health and Human Services Output Group 2: Community Health Services

Table 5.5 presents financial information for each Output under Output Group 2. A description of the Outputs follows the table.

Table 5.5: Summary Financial Information - Output Group 2 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) ) )Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Community Health Services

Expenses by Output1 2.1 Primary Health Services2 163 310) 168 834) 174 859) 181 474) 184 815) 2.2 Oral Health Services3 23 084) 27 323) 27 828) 25 255) 25 370) 2.3 Population Health Services4 31 391) 24 800) 25 212) 25 992) 26 119) 2.4 Mental Health Services5 115 817) 129 029) 131 231) 135 385) 136 177) 333 602) 349 986) 359 130) 368 106) 372 481)

Retained Revenue6 42 565) 20 012) 20 733) 21 227) 21 859)

Net Cost of Output Group 291 037) 329 974) 338 397) 346 879) 350 622)

Appropriation 283 090) 329 438) 329 307) 337 057) 341 306)

2.1 Primary Health Services

This Output comprises residential aged care, community-based rehabilitation and allied health services including assessment and case management, continence services, orthotics and prosthetics services and equipment schemes; and Palliative Care Services that provide interdisciplinary care, consultancy support and advice to people living with life limiting illnesses and their families.

Health and Human Services 5.15 2.2 Oral Health Services

This Output provides emergency and general care and dentures to eligible adults (holders of health care or pensioner concession cards) and all children under the age of 18 years as well as a range of health promotion and prevention activities.

2.3 Population Health Services

This Output provides three service streams: Public and Environmental Health Services, which monitors the health of the Tasmanian population, and implements programs to protect and promote health; Cancer Screening and Control Services; and Population and Health Priorities, which implements programs to prevent or reduce risk factors that lead to chronic conditions.

2.4 Mental Health Services

In 2009-10, Mental Health Services and the previous State-wide Specialist Services Output will be combined into one Output to fully integrate the services provided by these Outputs. This Output provides services to clients and their families to treat, support and manage mental disorders. The service also provides crisis assessment and treatment, intensive support, community care, rehabilitation services, Correctional Primary Health which provides primary health care services to correctional facilities; Forensic Mental Health services, which provides care and treatment for people with mental illnesses who have come into conflict with the criminal justice system; and Alcohol and Drug Services, which provides a range of specialist alcohol and other drug interventions and treatments at both individual and population levels.

Table 5.6: Performance Information – Output Group 2 Unit of 2006-07 2007-08 2008-09 2009-10 Performance Measure Measure Actual Actual Target Target

Primary Health Services Rural hospitals - separations Number 4 899 5 092 5 000 5 000 Rural hospitals - occupancy rate % 60.8 61.0 65.0 66.0 Community nursing - occasions of service1 Number 190 312 164 832 185 000 185 000 Residential aged care - occupancy rate % 94.3 91.5 92.0 92.0 Aged Care Assessment Program - completed assessments Number 5 205 5 583 5 200 5 205 Palliative care - specialist community - clients accessing the service Number 3 924 4 511 4 400 4 400

Mental Health Services Inpatient separations2 Number 2 381 2 165 2 200 2 200 Community and Residential - active clients Number 6 177 5 671 6 000 6 000 28-Day re-admission rate3 Number 18.0 14.0 10.0 9.5 Proportion of persons with a mental illness whose needs are met by the Tasmanian Mental Health Service (TT)4 % 40.7 35.0 50.0 60.0 Average length of acute inpatient stay Days 10.7 11.9 10.5 10.5

5.16 Health and Human Services Table 5.6: Performance Information – Output Group 2 (continued) Unit of 2006-07 2007-08 2008-09 2009-10 Performance Measure Measure Actual Actual Target Target

Alcohol and Drug Services - closed episodes of treatment1 Number 1 207 1 326 1 500 1 500 Pharmacotherapy Program - total active participants Number 600 588 600 600 Withdrawal Unit - bed occupancy % 47.0 55.0 80.0 80.0 Withdrawal Unit - average length of stay Days 6.5 6.2 6.0 6.0

Population Health Services Eligible women screened for breast cancer Number 23 976 24 910 22 272 22 422 BreastScreen - percentage of clients assessed within 28 days of screening5 % 40.5 19.4 90.0 90.0 Vaccine coverage in children aged 12-15 months % 91.4 91.0 91.2 91.2 Vaccine coverage in children aged 24-27 months % 95.1 93.4 92.8 92.8

Oral Health Services Adults - occasions of service - general Number 6 342 5 024 4 500 4 700 Adults - occasions of service - episodic Number 16 475 19 830 22 000 22 800 Adults - occasions of service - dentures Number 4 792 8 080 7 800 7 800 Children - occasions of service Number 73 241 63 168 60 800 63 600 General (adults) waiting list Number 8 563 8 330 7 000 7 000 Dentures - waiting list Number 389 1 016 3 600 3 500

Notes: 1. This figure is likely to be significantly under reported due to industrial action in 2007-08. 2. Actual figures for 2006-07 have been updated following a review of data. 3. The 2006-07 and 2007-08 actual 28 day readmission rates have been revised due to a change in the counting method. This has reduced the number of separations and therefore the readmission rate has increased in comparison to previous calculation methods. 4. This measure is the same measure used for Tasmania Together (TT). 5. The target for this indicator is based on the relevant BreastScreen Australia National Accreditation Standard. In 2006-07 and 2007-08, the service was unable to achieve this standard due to workforce shortages.

Performance Information Comments

Primary Health Services

Community nursing services continue to focus on more complex clients for home nursing visits and implementing cost-effective strategies including nursing clinics and use of personal-care assistants where appropriate. Consequently, the number of home visits by registered nurses was expected to decrease slightly in 2007-08. However, data reporting of community nursing occasions of service was impacted by industrial action, leading to under-reporting of occasions of service. Therefore, this data is not comparable with previous years.

Rural hospital activity is affected by the availability of rural GPs to provide inpatient services. The national shortage of rural GPs is likely to have an ongoing impact on hospital utilisation at some sites. In 2007-08,

Health and Human Services 5.17 there were 80.7 Full Workload Equivalent (FWE) GPs per 100 000 people in Tasmania compared to the national rate of 87.2 FWE GPs per 100 000 people. The number of rural hospital separations increased by 3.9 per cent over the 2007-08 year to 5 092 separations. The rural hospital occupancy rate remained relatively unchanged at 61 per cent.

Residential aged care is provided by the Department in rural communities where the population cannot support a viable, non-government nursing home. Aged Care Assessment Teams act as the gatekeepers by approving high and low care. An increase in the number of completed assessments conducted in 2006-07 was attributed to the introduction of associate assessors in the RHH. In 2007-08, Aged Care Assessment Teams continued to increase the number of completed assessments, with an increase of 7.3 per cent, from 5 205 to 5 583.

There was a 15 per cent increase in the number of clients accessing palliative care services in the 12 months to 30 June 2008, compared to the same period in 2007. This is mainly attributed to a continued increase in demand for palliative care services due to the ageing of the population and extensive palliative care education which has raised awareness of the availability of quality palliative care; and the recruitment of additional palliative care medical specialists in 2007 that resulted in increased service activity and referrals.

Mental Health Services

The number of people treated in mental health facilities has been declining since 2004, with a 9.1 per cent reduction in the number of inpatient admissions in the 12 months to 30 June 2008, compared to the same period the previous year. In 2006, a new model of care was introduced for adults aimed specifically at helping people with serious mental illness to remain in the community. The reduction in the figures is an indication that the strategy is working.

The average length of stay for inpatients has fallen slightly during the year and the 28-day unplanned readmission rate state-wide is expected to be close to the national standard of 10 per cent in 2008-09. Over time, reforms in community-based services, including assertive case management and a greater focus on recovery, should result in less demand for acute inpatient services.

Population Health Services

Screening for breast cancer amongst the eligible population occurs biennially. The target demographic is women aged 50 to 69 years, but all women aged over 40 years are eligible to attend.

Difficulty in recruiting radiologists and radiographers in 2007 and 2008 has resulted in a 2.9 per cent decrease in the number of women screened in the 12 months to June 2008, compared to the same screening cohort for the same period ending in June 2006, as well as a large decrease in the number of women assessed within 28 days of screening.

Radiologist and radiographer workforce shortages are a world-wide phenomenon that is impacting on most other BreastScreen services around the country. A number of strategies are underway in Tasmania to address the radiologist workforce shortages through training and recruitment, and a national committee has been established to develop short, medium and long-term solutions to the shortage of radiographers.

BreastScreen National Accreditation Standards require that all women who are recalled to assessment following screening attend an assessment clinic within 28 days of their screening visit. In 2007-08, 19.4 per cent of clients attending for assessment at BreastScreen Tasmania did so within 28 days of their

5.18 Health and Human Services screening visit, a decrease of 21.1 per cent compared with 2006-07. This decrease was due to the severe shortage of radiologists and radiographers.

Tasmania continues to record high rates of child immunisation, although the figures, from the Australian Childhood Immunisation Register, are considered to reflect under-reporting by providers and in fact, the true figures are likely to be higher.

Oral Health Services

In January 2007, Oral Health Services introduced the triage system and subsequently changed how some treatments were counted and reported. In particular, some of what was previously called general care is now counted as episodic care. Therefore, general care and episodic care data are not comparable with data prior to January 2007.

Targets for episodic and general care have been revised down because recruitment targets for Dental Officers, although now achieved, were realised progressively throughout the year rather than immediately. The revised Targets for 2008-09 nonetheless represent a substantial increase in total adult occasions of service over the actual total for 2007-08.

There was a significant increase of 19.3 per cent in the number of people using dental services in the 12 months to 30 June 2008, compared to the same period in the previous year. This is evident in the 68.6 per cent increase in the dentures occasions of service to 8 080 for this period, which is due to increased productivity as well as improved ability to report activity through a new information management system. The increase in dental care is due to an increase in the number of dental officers.

Demand for dentures will continue to increase in 2008-09 as a flow on effect of additional resources provided for general care under the General Care Waiting List Tender and the Commonwealth Dental Health Program (CDHP). A number of strategies are being implemented to meet the demand, including increased purchase of services from the private sector.

There has been a decrease of 13.8 per cent in the number of occasions children accessed dental care for the 12 months ending 30 June 2008, compared to the same period in the previous year. Dental care for children is provided by therapists. Workforce issues have resulted in a reduction in the availability of Dental Therapists, causing a reduction in activity during 2007-08. An ageing workforce and a growing national shortage of dental therapists are likely to continue to affect oral health services.

Health and Human Services 5.19 Output Group 3: Human Services

Table 5.7 presents financial information for each Output under Output Group 3. A description of the Outputs follows the table.

Table 5.7: Summary Financial Information - Output Group 3 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) ) )Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Human Services

Expenses by Output1 3.1 Children and Family Services2 92 903) 92 315) 92 796) 90 473) 90 222) 3.2 Youth Justice Services 14 482) 14 435) 14 832) 15 275) 15 274) 3.3 Disability Services3 133 708) 141 982) 153 574) 162 321) 166 662) 3.4 Housing Services4 141 855) 147 779) 148 155) 151 492) 152 462) 382 948) 396 511) 409 357) 419 561) 424 620)

Retained Revenue 71 997) 73 269) 76 648) 78 188) 75 450)

Net Cost of Output Group 310 951) 323 242) 332 709) 341 373) 349 170)

Appropriation 286 948) 302 227) 311 384) 320 215) 324 432)

3.1 Children and Family Services

This Output provides services for child protection, child health and parenting, psychological support and therapeutic services, family violence counselling and support, the community support program, which funds services provided by community sector organisations, and gambling support.

3.2 Youth Justice Services

This Output provides assistance for young people in conflict with the law through the provision of community conferencing, community service orders, supervision support and custodial services for young offenders at the Ashley Youth Detention Centre.

5.20 Health and Human Services 3.3 Disability Services

This Output provides accommodation support, community support, community access, respite, advocacy and information, and research and development for people with a disability.

3.4 Housing Services

This Output provides access to secure, affordable housing and support to low income Tasmanians, as well as accommodation and support for people experiencing homelessness.

Table 5.8: Performance Information – Output Group 3 Unit of 2006-07 2007-08 2008-09 2009-10 Performance Measure Measure Actual Actual Target Target

Children and Family Services Proportion of parents enrolling their newborn with the Child Health and Parenting Service1 % 96.1 95.6 97.2 97.0 Proportion of mothers attending the Child Health and Parenting Service at six weeks who were exclusively breastfeeding2,3 % 51.4 53.0 53.0 55.0 Proportion of Child Protection Notifications referred for investigation3 % 31.1 25.4 29.0 29.0 Proportion of finalised child protection investigations that were substantiated4 % 66.8 58.4 64.0 58.0 Children in Out-of-Home Care as at 30 June1 Number 668 664 650 600 Children on Care and Protection Orders as at (Per 1 000 30 June (TT)4 Population) 7.8 8.0 8.2 6.1 Number of unallocated cases as at 30 June3 Number 900 66 100 .... Substantiation rate after a decision not to substantiate5 % 15.8 9.6 15.0 14.0 Resubstantiation rate5 % 19.9 14.4 15.0 14.0

Disability Services Supported Accommodation Clients Number 1 104 1 132 1 104 1 161 Disability Services - Day Options Clients Number 1 487 1 544 1 487 1 602 Supported Accommodation - Waiting List3,6,7 Number 34 39 35 6 Day Options - Waiting List3,6,7 Number 107 123 110 83 Administrative Expenditure as a Proportion of Total Expenditure for Disability Services % 7.4 6.9 6.9 6.9

Youth Justice Services Average daily number of active clients3 Number 684 693 719 708 Average daily number of young people at Ashley Youth Detention Centre3 Number 28.7 27.9 30.5 28.3

Health and Human Services 5.21 Table 5.8: Performance Information – Output Group 3 (continued) Unit of 2006-07 2007-08 2008-09 2009-10 Performance Measure Measure Actual Actual Target Target

Housing Services Public Housing occupancy rate % 98.9 99.0 98.7 98.0 Number of applicants housed Number 1 146 1 010 1 150 1 100 Proportion of new allocations to those in greatest need % 94.6 96.1 90.0 90.0 Number of households assisted through the Private Rental Support Scheme Number 3 959 3 859 4 500 3 800 Tenant satisfaction with services provided by Housing Tasmania8 Number 72.0 na 75.0 75.0 Number of applicants on the waitlist Number 2 625 2 733 2 700 2 700 Average wait time for people who are housed Weeks 22.0 22.0 22.0 40.0 Average time to house Category 1 applicants (TT)4 Weeks 15.1 14.6 19.0 22.0 Proportion of Supported Accommodation Assistance Program (SAAP) support needs met9 % 95.0 na 100.0 100.0 Proportion of SAAP clients having two or more support periods with the 12 Month reporting period to the end of June9 % 23.7 na 24.0 24.0 SAAP support periods with a Support Plan9 % 60.4 na 100.0 65.0 Net recurrent cost per dwelling $ 7 033 6 947 6 950 6 870 Turnaround time Days 26.8 28.4 28.0 28.0

Notes: 1. Actual figures have been updated from data previously reported in the 2007-08 Annual Report and 2008-09 Budget Papers to reflect the effect of data lag. 2. The data on rates of breastfeeding is only indicative of the true rate of breastfeeding in Tasmania because the use of Child Health and Parenting Services is voluntary. 3. Estimates for 2008-09 and 2009-10 represent projections rather than targets. 4. This measure is the same measure used for Tasmania Together (TT). 5. The reporting period for these indicators is defined by the date of notification rather than the date the investigation was finalised. Due to delays in finalising investigations the actual results for 2006-07 and 2007-08 may differ from those published. 6. Waiting list data should not be relied upon solely to determine levels of unmet demand as indicators do not reflect client turnover and/or waiting times. 7. Waiting list figures are expressed as projections as future population growth and funding levels may produce growth in these indicators. 8. No satisfaction survey was conducted in 2007-08. 9. Supported Accommodation and Assistance Program (SAAP) data is reported to and collected by the Australian Institute of Health and Welfare and may not be available to jurisdictions until up to two years after the time of collection.

Performance Information Comments

Children and Family Services

The number of children placed in out-of-home care remained relatively stable during 2007-08. However, data for this measure has shown an upward trend since June 2008 and it is anticipated the number of children placed in care will continue to increase in the short term. This increase in demand will be addressed

5.22 Health and Human Services by reforms to Child Protection Services such as the implementation of diversionary programs to reduce the number of children coming into care. In addition, new models for the delivery of out-of-home care will provide a hierarchy of care options aligned with a diverse range of individual circumstances to better respond to the needs of children in placements.

The number of unallocated cases reduced from 900 at 30 June 2007 to 66 at 30 June 2008 as a result of a short-term dedicated project to review the receipt and allocation of notifications to Child Protection Services. New intake procedures implemented as a part of reforms to Child Protection Services have stabilised the processing of notifications and it is expected that the number of unallocated notifications will continue to remain low.

The introduction of a revised practice model during 2007-08 has delivered improved risk assessment and allocation processes to the intake component of Child Protection Services. These client focused system improvements have supported a reduction in the proportion of notifications referred for investigation in 2007-08 to 25.4 per cent.

The rate of re-substantiations and substantiations following a decision not to substantiate fell from 19.9 per cent to 14.4 per cent and 15.8 per cent to 9.6 per cent respectively in the year to 30 June 2008. This reduction suggests that the new intake model introduced in January 2008 has improved the identification and prioritisation of cases requiring a child protection response thus reducing the churn of clients through the intake and response phases of Child Protection Services.

Child Health and Parenting Services have a consistently high level of initial engagement with parents of newborn children. In 2007-08, 95.6 per cent of parents enrolled their newborn children in this service. This service also promotes breastfeeding and during 2007-08 experienced a slight increase in the proportion of attending mothers who were breastfeeding at six weeks from 51.4 per cent in 2006-07 to 53 per cent in 2007-08.

Disability Services

The number of supported accommodation clients increased modestly in 2007-08. It is anticipated that the number of clients will continue to rise as additional funding is utilised. A significant decrease in the supported accommodation waiting list has been projected for 2009-10 as capital works are due for completion, allowing additional supported accommodation places to be implemented. The number of day options clients is also projected to increase to reflect additional funding made available in 2008-09.

Tasmanian Government expenditure on administration as a proportion of total Disability Services expenditure reduced from 7.4 per cent in 2006-07 to 6.9 per cent in 2007-08. Administrative expenditure as a proportion of total expenditure is a good indicator of Governments' objective to provide specialist disability services in an efficient manner.

Youth Justice

The average number of clients on site at Ashley Youth Detention Centre has remained stable over the past four years and this is expected to continue in 2009-10. The average daily number of active clients for Community Youth Justice increased during 2006-07 and 2007-08. Based on data at hand the projection for 2009-10 is less than the projection for 2008-09. Youth crime clearance rates by Tasmania Police, court diversion programs, successful prosecutions and sentencing by the Courts are the drivers underpinning the demand for Youth Justice Services. Given the variables in the criminal justice system actual end of year averages may vary from projections.

Health and Human Services 5.23 Housing Tasmania

The number of applicants housed has declined by 11.9 per cent from 1 146 applicants to 1 010 during 2007-08. This is because a large increase in property prices in Tasmania in recent years has led to higher costs for private rental and home ownership, and fewer affordable accommodation options for people on low incomes. This has meant that people are remaining in public housing for longer periods with occupancy rates of 99.0 per cent at June 2008 the highest rate experienced. The number of applicants housed has been slowly decreasing over the past few years at the same time that property prices were increasing. The Number of Active Applicants on the waitlist increased by 4.1 per cent between 2006-07 and 2007-08, reflecting the high occupancy rate for public housing.

The target for the Number of Applicants Housed includes projected properties from the Nation Building – Economic Stimulus Plan: Social Housing where allocations will be made from the Public Housing wait list. The decrease in the target in 2009-10 is due to the high cost of private rentals and worsening economic conditions, resulting in fewer vacancies.

The large increase in the 2009-10 projection of the Average Wait Time for People who are Housed reflects an expected increase in waitlist numbers, high occupancy rates, and less housing allocations resulting from a constrained market.

New properties from the Nation Building – Economic Stimulus Plan: Social Housing will contribute to supply, but occupancy rates are also expected to continue to increase as demand for public housing increases due to worsening economic conditions. The full effect of the Nation Building – Economic Stimulus Plan on median waiting times is not expected until 2010-11, as the backlog is overcome.

5.24 Health and Human Services Output Group 4: Independent Children's Review Services

Table 5.9 presents financial information for the single Output under Output Group 4. A description of the Output follows the table.

Table 5.9: Summary Financial Information - Output Group 4 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) ) )Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Independent Children's Review Services

Expenses by Output 4.1 Office of the Commissioner for Children1 616) 647) 663) 689) 693) 616) 647) 663) 689) 693)

Retained Revenue 6) 5) 5) 5) 5)

Net Cost of Output Group 610) 642) 658) 684) 688)

Appropriation 603) 647) 649) 674) 679)

Note: 1. The Department's 2009-10 Budget and Forward Estimates include the impact of the Government's Budget Management Strategies. Details of the Budget Management Strategies are provided in Chapter 1 of Budget Paper No 2 Government Services.

4.1 Office of the Commissioner for Children

Activities provided in this Output include promoting the rights and wellbeing of children and examining the policies, practices and services provided for children and any law affecting the health, welfare, care, protection and development of children.

Performance Information Comments

The Commissioner for Children does not report performance information as it is not a Service Delivery Output Group. Details of the Commissioner for Children's activities are available in the Annual Reports, which can be accessed from its website at: http://www.childcomm.tas.gov.au.

Health and Human Services 5.25 SPECIAL CAPITAL INVESTMENT FUNDS

Table 5.10 identifies expenditure by the Department from the Government's Special Capital Investment Funds.

Table 5.10: Special Capital Investment Fund (SCIF) Allocations Estimated) 2009-10) 2010-11) 2011-12) 2012-13) Total) ) Forward) Forward) Forward) Cost) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Economic and Social Infrastructure Fund Hospital Equipment Fund 25 000) 1 500) 5 000) 770) ….)

Hospitals Capital Fund Launceston General Hospital Car Park 15 000) 10 000) 5 000) ....) ....) North West Regional Hospital 3 000) 761) ....) ....) ....) Royal Hobart Hospital 100 000) 11 000) 17 500) 20 500) 26 000) 21 761) 22 500) 20 500) 26 000)

Housing Fund 60 000) 10 000) 20 000) 20 000) ….)

Infrastructure Tasmania Fund Health Information Technology Child Protection Information System Phase Two 700) 200) ....) ....) ....) Enterprise Storage Solution 3 000) 500) 500) ....) ....) LAN and Infrastructure Upgrade 4 000) 1 000) 500) 1 000) ....) Medical Imaging Project 3 700) 1 000) 2 700) ....) ....) Mental Health Services Electronic Client Management and Reporting System 1 600) 750) 450) ....) ....) Messaging and Identifier Systems 2 000) 500) 500) 500) ....) Patient Administration System 3 500) 1 500) 1 500) ....) ....) 5 450) 6 150) 1 500) ....)

Health Infrastructure Bruny Island Community Health Centre Upgrade 3 000) 1 950) ....) ....) ....) Clarence GP Superclinic/ICC1 18 000) 3 500) 9 500) ....) ....) Flinders Island Multi Purpose Centre Upgrade 6 000) 1 000) 2 000) 3 000) ....) Glenorchy – Tier Three Community Health Services Facility 8 500) 1 200) 4 250) 3 000) ....) Integrated Care Centre (ICC) Launceston2 18 000) ....) 3 000) ....) ....) King Island Hospital and Health Centre Upgrade 5 000) 1 000) 2 000) 2 000) ....) Kingston – Tier Three Community Health Services Facility 6 500) 500) 3 000) 3 000) ....)

5.26 Health and Human Services Table 5.10: Special Capital Investment Fund (SCIF) Allocations (continued) Estimated) 2009-10) 2010-11) 2011-12) 2012-13) Total) ) Forward) Forward) Forward) Cost) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Health Infrastructure (continued) Longford/Westbury Health Centre Upgrade 2 000) 1 875) ...... ) Tasmanian Ambulance Service Station Upgrade 1 660) 750) ....) ....) ....) 11 775) 23 750) 11 000) ....)

Total SCIF Allocations ) 50 486) 77 400) 53 770) 26 000)

Notes: 1. Funding of $5.0 million has been provided for this project by the Australian Government through the Capital Investment Program, bringing the total project funding to $18.0 million. 2. Funding of $15.0 million has been provided for this project by the Australian Government through the Capital Investment Program, bringing the total project funding to $18.0 million.

Hospital Equipment Fund

In 2006-07, a $25.0 million fund was established for the purchase of hospital equipment throughout the State over five years. Anticipated expenditure in 2009-10 is $1.5 million, which will be allocated to clinically determined priorities for major medical equipment and information system investment to support better care delivery in hospitals and health services.

Hospitals Capital Fund

The Hospitals Capital Fund (HCF) was established in 2007-08 to provide capital funding for hospitals around the State. In 2009-10, $21.8 million has been allocated from the HCF for the purchase of medical equipment for the North West Regional Hospital ($761 000); the construction of the Launceston General Hospital Car Park ($10.0 million); and the redevelopment of the Royal Hobart Hospital ($11.0 million).

The HCF will provide $100.0 million over five years to address the Royal Hobart Hospital's ageing buildings and infrastructure, and to improve and expand key services such as intensive care. Anticipated projects for the Royal Hobart Hospital include:

• creation of a combined clinic area where out-patient functions can be consolidated in one location to improve efficiency and free up space in other parts of the Hospital;

• relocation and expansion of the Ambulatory Care Unit and Oncology Unit;

• expansion of the recovery area in the Day Procedures Unit, including a 23 hour Recovery Unit to provide clinical staff with more flexibility in scheduling elective surgery; and

Health and Human Services 5.27 Housing Fund

Projects funded from the Housing Fund and commencing during 2008-09 include:

• the release of land for the development of affordable housing sites ($1.0 million);

• transitional accommodation for parolees' (Bethlehem House - $200 000);

• the commencement of construction of 50 Quick Build Homes ($8.0 million); and

• a contribution of $6.0 million to Community Housing Limited under the National Rental Affordability Scheme.

Health Information Technology

In 2008-09, funding of $18.5 million was allocated over four years from the Infrastructure Tasmania Fund to support the development of integrated health information systems and related infrastructure in the Department to enable and support reform in health service delivery. Expenditure in 2009-10 will include the completion of the Child Protection Information System ($200 000); an Enterprise Storage Solution ($500 000); a LAN and infrastructure upgrade ($1.0 million); medical imaging ($1.0 million); a Mental Health Services Electronic Client Management and Reporting System ($750 000); messaging and identifier systems ($500 000); and a Patient Administration System ($1.5 million).

Health Infrastructure

In 2009-09, funding of $50.4 million was allocated over four years from the Government's Infrastructure Tasmania Fund to implement a series of capital investment projects. During 2009-10 expenditure on the following projects includes: upgrading the Bruny Island Community Health Centre ($2 million); the Clarence GP Superclinic and Integrated Care Centre ($3.5 million); upgrading the Flinders Island Multi Purpose Centre ($1.0 million); the redevelopment of the Glenorchy Community Health Centre ($1.2 million); upgrading the King Island Hospital and Health Centre ($1.0 million); the redevelopment of Kingston Community Health Centre ($500 000); upgrading the Longford and Westbury Health Centres ($1.9 million); and the upgrade of Tasmanian Ambulance Service Stations ($750 000).

5.28 Health and Human Services CAPITAL INVESTMENT PROGRAM

Table 5.11 provides financial information for the Department's Capital Investment Program. For more information on the Capital Investment Program, see Chapter 7 in Budget Paper No 1 The Budget.

Table 5.11: Capital Investment Program Estimated) 2009-10) 2010-11) 2011-12) 2012-13) Total) Forward) Forward) Forward) Cost) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

New Projects Disability Services - Supported Accommodation 2 630) 1 400) ....) ....) ....) Launceston General Hospital Acute Medical and Surgical Unit 40 000) 15 000) 16 500) 7 500) 1 000) Nation Building - Economic Stimulus Plan: Housing - New Construction Stage 1 16 131) 14 731) ....) ....) ....) Nation Building - Economic Stimulus Plan: Housing - New Construction Stage 2 123 448) 75 523) 40 652) 7 273) ....) Nation Building - Economic Stimulus Plan: Housing - Repairs and Maintenance 9 324) 4 662) ....) ....) ....) PET-CT Scanner at the Royal Hobart Hospital 3 500) 3 500) ....) ....) ....) ) 114 816) 57 152) 14 773) 1 000)

Continuing Projects CCTV Project at Ashley Youth Detention Centre 300) 250) ....) ....) ....) Clarence GP Superclinic/ICC1 18 000) 4 500) ....) ....) ....) Housing - New Projects Ongoing) 17 543) 13 363) 10 562) 11 685) Launceston Integrated Care Centre (ICC)2 18 000) 5 550) 8 700) ....) ....) LGH Emergency Department 12 000) 8 055) 3 160) ....) ....) New Ambulances 10 670) 2 000) ....) ....) ....) Non-Works Housing Ongoing) 6 532) 6 669) 6 812) 6 968) 44 430) 31 892) 17 374) 18 653)

Total CIP Allocations 159 246) 89 044) 32 147) 19 653)

Notes: 1. The balance of funding for this project ($13.0 million) has been provided by the State through the Infrastructure Tasmania Fund (Health Infrastructure) to bring the total project funding to $18.0 million. 2. An amount of $3.0 million has been provided by the State through the Infrastructure Tasmania Fund (Health Infrastructure) to bring the total project funding to $18.0 million.

Health and Human Services 5.29 Nation Building – Economic Stimulus Plan: Social Housing

The Nation Building – Economic Stimulus Plan seeks to provide a timely economic stimulus aimed at improved nation building and supporting economic growth. The Social Housing initiative provides for the construction of new social housing stock and repairs and maintenance of existing stock. It will provide a boost to public housing and housing administered by the not-for-profit community sector in the State and is designed to assist low income Tasmanians who are homeless or struggling in the private rental market. Total funding for social housing in Tasmania is $148.9 million from 2008-09 to 2011-12, with $94.9 million being provided in 2009-10. This includes $4.7 million in 2009-10 for repairs and maintenance of existing housing stock and $90.3 million for construction of new housing.

Disability Services – Supported Accommodation

This project will see the development and construction of semi-independent living units as part of the Disability Services Accommodation Options Project. The units will be collocated on current supported accommodation sites and will provide up to 18 new accommodation places for people with a disability across the State. Total funding for the Project of $2.6 million will be provided by the Australian Government. An amount of $1.4 million is allocated for the project in 2009-10. It is anticipated that the construction of the units will be completed by early 2010.

Launceston General Hospital Acute Medical and Surgical Unit

Total funding of $40.0 million will be provided by the Australian Government over four years for the construction of a new Acute Medical Assessment Unit and the upgrade of the Surgical Services Unit and Intensive Care Unit. Services proposed include providing patient assessment, early treatment and care planning and other service expansions. It is estimated that $15.0 million of the total $40.0 million allocation will be spent during 2009-10, with the project expected to be completed by 2012-13.

CCTV Project at Ashley Youth Detention Centre

Funding of $300 000 was allocated in 2008-09 for the upgrade of on-site surveillance and security at Ashley Youth Detention Centre through the installation of closed circuit television (CCTV). Expenditure in 2009-10 will be $250 000.

Clarence GP Superclinic and Integrated Care Centre (ICC)

Funding of $18.0 million over three years is provided to develop a GP Superclinic/ICC that will combine services from existing facilities and provide new models of care for persons currently receiving treatment at the Royal Hobart Hospital and other Departmental service locations. The GP Superclinic/ICC will relieve demand pressures on acute health services and improve services for people with chronic disease. The project includes an allocation of $4.5 million in 2009-10 from the Australian Government, and has allocations of $3.5 million in 2009-10, and $9.5 million in 2010-11 from the Infrastructure Tasmania Fund (Health Infrastructure). It is estimated that $8.0 million of the total $18.0 million allocation will be spent during 2009-10, with the project expected to be completed by 2010-11.

5.30 Health and Human Services Housing – New Projects

Funding of $17.5 million is provided in 2009-10 for Housing Tasmania's capital program, including the purchase and construction of public housing. Further details of the Housing capital program are provided in Chapter 7 of Budget Paper No 1 The Budget.

Launceston Integrated Care Centre

Funding of $18.0 million over three years is provided to develop a centralised Integrated Care Centre that will combine services from existing facilities and provide new models of care for persons currently receiving treatment at the Launceston General Hospital and other Departmental service locations. The Launceston ICC will focus on non-emergency services, including a broad range of non-admitted primary, secondary and tertiary services, and short-stay elective services and specialised subacute services. It is estimated that $5.6 million of the total $18.0 million allocation will be spent during 2009-10, with the project expected to be completed by 2010-11.

Launceston General Hospital Emergency Department

In 2008-09, funding of $12.0 million was allocated to the redevelopment of the Department of Emergency Medicine at the Launceston General Hospital. The funding provided will increase the available floor space and create a short stay observation ward and separate triage area. Expenditure in 2009-10 will be $8.1 million. The expected completion date for the redevelopment is 2010-11.

New Ambulances

Funding for the Government's $10.7 million New Ambulance initiative will continue in 2009-10 with expenditure of $2.0 million. This initiative will purchase 100 new ambulances over four years to replace ageing vehicles in Tasmania's ambulance fleet.

Non-Works Housing

An amount of $6.5 million in 2009-10 has been allocated for the repayment of loans from the Australian Government under the former Commonwealth-State Housing Agreement.

Health and Human Services 5.31 DETAILED BUDGET STATEMENTS

Table 5.12: Income Statement 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Revenue Revenue from Appropriation1 1 238 423) 1 474 043) 1 391 629) 1 365 090) 1 363 602) Interest Revenue 1 870) 1 464) 1 290) 1 211) 1 143) Grants2 66 186) 50 486) 77 400) 53 770) 26 000) Sales of Goods and Services3 148 342) 214 592) 220 206) 223 489) 222 895) Other Revenue4 22 012) 24 813) 24 559) 25 114) 25 531) 1 476 833) 1 765 398) 1 715 084) 1 668 674) 1 639 171)

Less Expenses Employee Entitlements5 713 418) 789 202) 776 428) 799 470) 799 048) Superannuation5 67 268) 76 298) 79 171) 79 285) 80 175) Depreciation and Amortisation 49 382) 50 356) 50 411) 49 519) 49 372) Borrowing Costs 10 472) 10 201) 9 918) 9 628) 9 331) Grants and Transfer Payments 187 399) 198 048) 208 433) 216 618) 218 432) Supplies and Consumables 406 302) 427 289) 437 018) 440 945) 453 429) Other Expenses 55 446) 60 789) 58 539) 57 436) 57 834) 1 489 687) 1 612 183) 1 619 918) 1 652 901) 1 667 621)

Plus Gains/(Losses) Gain (Loss) on Sale of Non-Financial Assets 1 705) 1 689) 1 553) 1 522) 1 886) 1 705) 1 689) 1 553) 1 522) 1 886)

Equals OPERATING RESULT (11 149) 154 904) 96 719) 17 295) (26 564)

Plus Other Movements in Equity Revaluations of Non-Financial Assets6 41 957) 53 362) 53 398) 53 436) 53 474) Other Non-Owner Movements in Equity 1 883) 1 883) 1 883) 1 883) 1 883) 43 840) 55 245) 55 281) 55 319) 55 357)

Equals COMPREHENSIVE INCOME 32 691) 210 149) 152 000) 72 614) 28 793)

Notes: 1. The increase in Revenue from Appropriation primarily reflects additional funding provided for: salary and indexation and new initiative funding from the State Government for Ambulance and Patient Transport; Disability Services Industrial Wage Outcome; Children Abused in Care; an increase in Works and Services appropriation for Housing Projects; changes to Federal Financial Arrangements; an increase in Australian Government funding as part of the Nation Building - Economic Stimulus Plan: Social Housing and Disability Services Supported Accommodation; and additional funding under the Health and Hospitals fund for an acute medical and surgical service unit at the

5.32 Health and Human Services Launceston General Hospital. The increase in 2009-10 also includes the impact of a 27th pay, with a corresponding decrease in 2010-11. 2. The movement in Grants revenue primarily reflects changes in expenditure cash flows to projects funded under the Special Capital Investment Funds, in particular: the Hospitals Capital Fund; Hospital Equipment Fund; and Health Infrastructure Fund; and the removal of Australian Government funding as part of revised administrative arrangements for the receipt of Australian Government revenue. 3. The increase in Sales of Goods and Services primarily reflects additional Australian Government funding for the management and operation of the Mersey Community Hospital. 4. The increase in Other Revenue primarily reflects a more accurate estimate of revenue from recoveries. 5. The increase in Employee Entitlements and Superannuation primarily reflects increased funding for salary indexation; Ambulance and Patient Transport; and the Australian Government funded Mersey Community Hospital. The movement in 2010-11 primarily reflects the cessation of once-off Australian Government funding for health care provided in 2009-10. 6. The increase in Revaluations of Non-Financial Assets reflects an increase in the value of Land and Buildings.

Table 5.13: Revenue from Appropriation 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Annual Appropriation Recurrent1 1 215 626) 1 331 408) 1 312 425) 1 343 038) 1 354 308) Works and Services2 22 028) 142 085) 79 204) 22 052) 9 294) 1 237 654) 1 473 493) 1 391 629) 1 365 090) 1 363 602)

Appropriation Carried Forward 769) 550) ....) ....) ....)

Total Revenue from Appropriation 1 238 423) 1 474 043) 1 391 629) 1 365 090) 1 363 602)

Notes: 1. The increase is Recurrent Annual Appropriation is due to additional funding from the Australian Government for the National Healthcare Agreement Specific Purpose Payment; additional funding from the State Government for indexation; Ambulance and Patient Transport; the additional 27th pay in 2009-10; and changes to administrative arrangements for Australian Government funding. 2. The increase in Works and Services is due to additional funding for major capital projects. In 2009-10, the Capital Investment Program includes additional funding from the Australian Government for the Nation Building - Economic Stimulus Plan: Social Housing; the Launceston General Hospital Acute Medical and Surgical Unit; Social Housing; Remote Indigenous and Homelessness National Partnership Payments; and funding for the Launceston General Hospital Emergency Department.

Health and Human Services 5.33 Table 5.14: Income Statement - Administered 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Revenue Revenue from Appropriation1 32 105) 34 919) 22 077) 22 673) 23 284) Grants2 337 393) 22 226) 23 738) 25 576) 27 589) Sales of Goods and Services 16) ....) ....) ....) ....) 369 514) 57 145) 45 815) 48 249) 50 873)

Less Expenses Grants and Transfer Payments1 32 220) 35 016) 22 156) 22 754) 23 387) Transfer to the Consolidated Fund2 337 409) 22 226) 23 738) 25 576) 27 589) 369 629) 57 242) 60 894) 48 330) 50 976)

Equals OPERATING RESULT (115) (97) (79) (81) (103)

Plus Other Movements in Equity Revaluations of Non-Financial Assets ....) ....) ....) ....) ....) Other Non-Owner Movements in Equity ....) ....) ....) ....) ....)

Equals COMPREHENSIVE INCOME (115) (97) (79) (81) (103)

Notes: 1. The reduction in Revenue from Appropriation and Grants and Transfer Payments in 2010-11 reflects the finalisation of the Children Abused in Care initiative. 2. The reduction in Grants revenue and Transfers to the Consolidated Fund primarily reflects the change to the administration of Australian Government funding resulting from the Council of Australian Governments (COAG) Intergovernmental Agreement on Federal Financial Relations. Information on Australian Government funding for health, disabilities and housing is provided in Chapter 9 of Budget Paper No 1 The Budget.

5.34 Health and Human Services Table 5.15: Administered Revenue 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Revenue Collected on Behalf of the Consolidated Fund Commonwealth Capital Grants1 11 943) ....) ....) ....) ....) Commonwealth Recurrent Grants1 325 450) 22 226) 23 738) 25 576) 27 589) Other Sales of Services1 16) ....) ....) ....) ....) 337 409) 22 226) 23 738) 25 576) 27 589)

Revenue from Appropriation Annual Appropriation2 32 105) 34 919) 22 077) 22 673) 23 284)

Total Administered Revenue 369 514) 57 145) 45 815) 48 249) 50 873)

Notes: 1. The reduction in Commonwealth Capital Grants, Commonwealth Recurrent Grants and Other Sales of Services reflects the change to the administration of Australian Government funding resulting from the Council of Australian Governments (COAG) Intergovernmental Agreement on Federal Financial Relations. Information regarding Australian Government revenue is provided in Chapter 9 of Budget Paper No 1 The Budget. 2. The decrease in Annual Appropriation in 2010-11 reflects the completion of the Children Abused in Care initiative.

Health and Human Services 5.35 Commonwealth Recurrent Grants

From 2009-10, Commonwealth Recurrent Grants reflect Commonwealth Own Purpose Expenditure (COPE) payments. These payments are paid from the responsible Australian government agency to the relevant State agency and receipted to the Consolidated Fund. Australian Government COPEs in 2009-10 include:

• Highly Specialised Drugs ($15.5 million);

• Transitional Care Program ($1.7 million);

• Regional Health Services Program ($1.4 million);

• Medical Specialist Outreach Assistance Program ($1.2 million);

• Multi Purpose Centre Payments ($972 000);

• Extended Aged Care at Home and Community Aged Care Packages ($585 000);

• Rehabilitation Aged Care Liaison ($427 000);

• National Respite for Carer Grant ($220 000);

• Multi Purpose Centre Coordinator Grant ($168 000);

• Palliative Care Program ($123 000); and

• Boost Cancer Research Program ($40 000).

5.36 Health and Human Services Table 5.16: Administered Expenses 2008-09] 2009-10] 2010-11] 2011-12] 2012-13] ) ) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Grants and Subsidies Children Abused in Care1 8 855) 13 381) ....) ....) ....) Community Service Activity: Aurora Energy Pty Ltd - Pensioner Concessions2 23 365) 21 635) 22 156) 22 754) 23 387) 32 220) 35 016) 22 156) 22 754) 23 387)

Transfer to the Consolidated Fund3 337 409) 22 226) 23 738) 25 576) 27 589)

Total Administered Expenses 369 629) 57 242) 45 894) 48 330) 50 976)

Notes: 1. The increase in the Children Abused in Care payments reflects an anticipated increase in ex-gratia payments in 2009-10. 2. The reduction in the Community Services Activity: Aurora Energy Pty Ltd - Pensioner Concessions reflects a more accurate assessment of the payments anticipated in 2009-10 and over the Forward Estimates. 3. The reduction in the Transfer to the Consolidated Fund is due to the change to the administration of Australian Government funding resulting from the Council of Australian Governments (COAG) Intergovernmental Agreement on Federal Financial Relations.

Children Abused in Care

In March 2008, the former Premier, Hon Paul Lennon MP, and the then Minister for Health and Human Services, Hon Lara Giddings MP, announced a new scheme for people abused while in State care. The scheme is open to people who, for legitimate reasons, did not apply under the previous round for adults who were abused in State care.

Community Service Activity: Aurora Energy Pty Ltd – Pensioner Concessions

Under arrangements with the electricity supply industry in Tasmania, an agreement for the provision of Pensioner and Health Care Card holder concessions has been established between the Government and Aurora Energy Pty Ltd as a Community Service Activity. The Department provides funding to Aurora Energy for the purpose of providing a subsidy to eligible Tasmanian pensioners and Health Care Card holders on their electricity accounts.

Health and Human Services 5.37 Table 5.17: Balance Sheet as at 30 June 2009) 2010) 2011) 2012) 2013) ) ) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Assets Financial Assets Cash and Deposits1 12 002) 49 349) 49 299) 49 303) 49 311) Investments2 7 472) 10 536) 14 192) 17 844) 17 762) Receivables 20 943) 21 930) 23 240) 24 570) 26 019) Other Financial Assets3 5 705) 8 957) 9 047) 9 132) 9 239) 46 122) 90 772) 95 778) 100 849) 102 331)

Non-Financial Assets Land and Buildings4 2 095 545) 2 525 283) 2 679 426) 2 761 294) 2 804 907) Plant and Equipment5 77 773) 57 063) 59 013) 52 986) 44 929) Other Non-Financial Assets6 8 611) 9 481) 10 061) 10 647) 11 285) 2 181 929) 2 591 827) 2 748 500) 2 824 927) 2 861 121)

Total Assets 2 228 051) 2 682 599) 2 844 278) 2 925 776) 2 963 452)

Liabilities Borrowings 231 081) 218 289) 205 088) 190 494) 175 601) Superannuation 17 190) 16 313) 16 606) 16 472) 16 429) Employee Entitlements7 183 726) 159 996) 179 816) 200 573) 221 233) Payables8 40 370) 34 056) 35 927) 37 850) 39 958) Other Liabilities9 15 495) 37 303) 38 199) 39 131) 40 182) Total Liabilities 487 862) 465 957) 475 636) 484 520) 493 403)

NET ASSETS 1 740 189) 2 216 642) 2 368 642) 2 441 256) 2 470 049)

Equity Accumulated Funds 368 758) 561 354) 659 956) 679 134) 654 453) Asset Revaluation Reserve 1 365 337) 1 649 194) 1 702 592) 1 756 028) 1 809 502) Other Equity 6 094) 6 094) 6 094) 6 094) 6 094) Total Equity 1 740 189) 2 216 642) 2 368 642) 2 441 256) 2 470 049)

Notes: 1. The increase in Cash and Deposits reflects a more accurate estimate of cash held at the end of the year, based on information contained in the Department's 2007-08 financial statements. Patient Trust accounts and Australian Government funds held for specific projects constitute a large part of this balance. 2. The increase in Investments reflects the impact of the new Home Share scheme, which is a new initiative helping low to moderate income Tasmanians to buy their own homes under a shared equity scheme. 3. The increase in Other Financial Assets reflects a movement in prepayments offset by a reduction in the value of the Tasmanian Ambulance Service Superannuation Scheme as a result of an actuarial valuation of the present value of the benefit of obligations and fair value of plan assets.

5.38 Health and Human Services 4. The increase in Land and Buildings reflects the impact of Capital Investment Program and Special Capital Investment Fund projects. 5. The reduction in Plant and Equipment reflects a more accurate estimate based on the Department's 2007-08 financial statements, and a reclassification of Health Infrastructure expenditure from Plant and Equipment to Land and Buildings. 6. The increase in Other Non-Financial Assets reflects more accurate estimate of the value of inventory. 7. The reduction in Employee Entitlements reflects a more accurate estimate of the liability based on the Department's 2007-08 financial statements, and a decrease in the level of accrued salaries in 2009-10 as a result of the payment of a 27th pay during the year. 8. The reduction in Payables reflects a more accurate estimate of the liability based on the Department's 2007-08 financial statements and a reduction in the level of outstanding invoices. 9. The increase in Other Liabilities reflects a more accurate estimate of the liability based on the Department's 2007-08 financial statements in relation to Group and Payroll Tax and income received in advance.

Table 5.18: Balance Sheet as at 30 June - Administered 2009) 2010) 2011) 2012) 2013) ) ) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Liabilities Payables1 5 355) 3 961) 4 040) 4 121) 4 224) Total Liabilities 5 355) 3 961) 4 040) 4 121) 4 224)

NET ASSETS (5 355) (3 961) (4 040) (4 121) (4 224)

Equity Accumulated Funds (5 355) (3 961) (4 040) (4 121) (4 224) Total Equity (5 355) (3 961) (4 040) (4 121) (4 224)

Note: 1. The decrease in Payables reflects a more accurate estimate of the liability based on the Department's 2007-08 financial statements.

Health and Human Services 5.39 Table 5.19: Cash Flow Statement 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Cash Flows from Operating Activities Cash Received Appropriation1 1 237 654) 1 473 493) 1 391 629) 1 365 090) 1 363 602) Interest Received 1 870) 1 470) 1 290) 1 211) 1 143) Grants2 66 186) 50 486) 77 400) 53 770) 26 000) Sales of Goods and Services3 147 454) 213 089) 218 804) 222 065) 221 327) GST Receipts 45 058) 45 059) 46 410) 47 801) 49 239) Other Receipts4 22 012) 24 996) 24 709) 25 266) 25 726) 1 520 234) 1 808 593) 1 760 242) 1 715 203) 1 687 037)

Cash Paid Employee Entitlements5 (698 083) (799 189) (756 659) (776 970) (778 439) Superannuation5 (67 217) (75 792) (78 783) (79 325) (80 114) Borrowing Costs (10 472) (10 201) (9 918) (9 628) (9 331) Grants and Transfer Payments (187 399) (198 048) (208 433) (216 618) (218 432) Supplies and Consumables (406 358) (425 582) (435 415) (439 287) (451 590) GST Payments (45 058) (45 063) (46 423) (47 807) (49 243) Other Payments (51 746) (56 650) (56 191) (57 969) (56 554) (1 466 333) (1 610 525) (1 591 822) (1 627 604) (1 643 703)

Net Cash Flows from Operating Activities 53 901) 198 068) 168 420) 87 599) 43 334)

Cash Flows from Investing Activities Sale of Fixed Assets 14 330) 13 753) 7 582) 7 937) 8 301) Purchase of Fixed Assets6 (62 118) (204 822) (165 795) (85 139) (44 819) Net Customer Loans (Granted)/Repaid7 2 385) (1 155) (3 656) (3 652) 82) Net Cash Flows from Investing Activities (45 403) (192 224) (161 869) (80 854) (36 436)

Cash Flows from Financing Activities Net Borrowings (6 260) (6 396) (6 601) (6 741) (6 890) Net Cash Flows from Financing Activities (6 260) (6 396) (6 601) (6 741) (6 890)

Net Increase/(Decrease) in Cash Held 2 238) (552) (50) 4) 8)

Cash at the Beginning of the Year 9 764) 49 901) 49 349) 49 299) 49 303) Cash at the End of the Year 12 002) 49 349) 49 299) 49 303) 49 311)

5.40 Health and Human Services Notes: 1. The increase in Revenue from Appropriation primarily reflects additional funding provided for: indexation and payment of a 27th pay during 2009-10; additional funding for Ambulance and Patient Transport; Disability Services Industrial Wage Outcome; an increase in Works and Services appropriation for Housing New Projects; changes to administrative arrangements for Australian Government grants; an increase in Australian Government funding as part of the Nation Building – Economic Stimulus Plan: Social Housing and Disability Services Supported Accommodation; and Australian Government funding for an acute medical and surgical service unit at the Launceston General Hospital. 2. The movement in Grants revenue primarily reflects changes in expenditure cash flows to projects funded under the Special Capital Investment Funds, including the Hospitals Capital Fund; Hospital Equipment Fund; and Health Infrastructure Fund; and changes in administrative arrangements for the receipt of Australian Government revenue. 3. The increase in Sales of Goods and Services primarily reflects additional Australian Government funding for the management and operation of the Mersey Community Hospital. 4. The increase in Other Receipts primarily reflects a more accurate estimate of revenue from recoveries. 5. The increase in Employee Entitlements and Superannuation primarily reflects increased funding for salary indexation; the 27th pay in 2009-10; additional funding for Ambulance and Patient Transport; and the Mersey Community Hospital. 6. The increase in Purchase of Fixed Assets primarily reflects the impact of Capital Investment Program and Special Capital Investment Fund projects. 7. The increase in Net Customer Loans Granted reflects an increase in loans to private individuals under the Home Share shared equity scheme.

Table 5.20: Cash Flow Statement - Administered 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Cash Flows from Operating Activities Cash Received Appropriation1 32 105) 34 919) 22 077) 22 673) 23 284) Grants2 337 393) 22 226) 23 738) 25 576) 27 589) Sales of Goods and Services 16) ....) ....) ....) ....) 369 514) 57 145) 45 815) 48 249) 50 873)

Cash Paid Grants and Transfer Payments1 (32 105) (34 919) (22 077) (22 673) (23 284) Transfers to the Consolidated Fund2 (337 409) (22 226) (23 738) (25 576) (27 589) (369 514) (57 145) (45 815) (48 249) (50 873)

Net Increase/(Decrease) In Cash Held ....) ....) ....) ....) ....)

Cash at the Beginning of the Year ....) ....) ....) ....) ....) Cash at the End of the Year ....) ....) ....) ....) ....)

Notes: 1. The reduction in Appropriation and Grants and Transfer Payments in 2010-11 reflects the finalisation of the Children Abused in Care initiative. 2. The reduction in Grants revenue and Transfers to the Consolidated Fund primarily reflects the change to the administration of Australian Government funding resulting from the Council of Australian Governments (COAG) Intergovernmental Agreement on Federal Financial Relations.

Health and Human Services 5.41

6 DEPARTMENT OF INFRASTRUCTURE, ENERGY AND RESOURCES

AGENCY OUTLINE

The Department of Infrastructure, Energy and Resources provides infrastructure for the social and economic development of Tasmania.

The Department reports to the Minister for Infrastructure, Hon Graeme Sturges MP, the Minister for Energy and Resources, Hon David Llewellyn MP, and the Minister for Racing, Hon Michael Aird MLC.

By providing a strategic approach to the provision of both physical infrastructure and regulatory frameworks, the Department aims to:

• facilitate a safe and efficient transport system that enhances economic development;

• promote reliable, efficient, safe and sustainable energy systems;

• facilitate forest policy for Tasmania's sustainable forestry practices and forest industries;

• facilitate mineral exploration and land management of Tasmanian land and offshore waters; and

• maintain probity and integrity in the racing industry.

This chapter provides the Department's financial information for 2009-10 and the Forward Estimates period (2010-11 to 2012-13). Further information on the Department is provided at: http://www.dier.tas.gov.au.

Infrastructure, Energy and Resources 6.1 MAJOR INITIATIVES

Table 6.1 provides a summary of the Budget and Forward Estimate allocations for major initiatives.

Table 6.1: Major Initiatives Statement 2009-10) 2010-11) 2011-12) 2012-13) ) Forward) Forward) Forward) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000)

Burnie City Council - Access to West Park Precinct 500) ….) ….) ….) Extra Low Voltage/Light Emitting Diode (ELV/LED) Technology 2 000) 800) 215) ….) Novice Driver Licensing Reforms 1 092) 1 125) 1 158) 1 193) Racing Integrity Services 165) 165) 165) 165) Tasmanian Racing Board 27 000) 27 203) 27 339) 27 612)

Infrastructure Projects Bagdad Bypass 3 820) 1 070) ….) ….) Bell Bay Intermodal Terminal 800) 6 920) 1 400) ….) Bridgewater Bridge Refurbishment 7 500) ….) ….) ….) Brighton Bypass 46 575) 64 450) 40 575) ….) Brighton Transport Hub 32 987) 22 680) 6 720) 10 600) Brooker Highway 4 500) 3 662) ….) ….) Bruny Island Road Sealing 2 500) 1 800) ….) ….) Illawarra Main Road 4 500) 1 300) ….) ….) Kingston Bypass 7 500) 4 500) 15 600) ….) Lyell Highway – Granton to New Norfolk 5 138) ….) ….) ….) North East Freight Roads 2 000) 11 000) 10 000) 18 000) Tarkine Drive 8 800) 12 200) 1 175) …. Port Sorell Main Road ….) ….) 4 000) …. Rail – Boyer to Karanja ….) 5 000) 14 500) 10 000) Rail – Capacity Improvements Rhyndaston 4 000) 7 000) 7 000) 6 000) Rail – Main Line Improvements 3 500) 8 500) 10 600) 9 000) Rail – Upgrade North West Line to Wiltshire ….) 5 000) 14 500) 10 000) Rail – West Coast Mines Upgrade ….) 5 000) 6 200) ….)

Burnie City Council - Access to West Park Precinct

This initiative provides funding of $500 000 to the Burnie City Council to assist with the road infrastructure required to access the West Park Precinct.

6.2 Infrastructure, Energy and Resources Extra Low Voltage/Light Emitting Diode (ELV/LED) Technology

This initiative will roll out a safe, state of the art, sustainable and power efficient traffic signals system using Extra Low Voltage/Light Emitting Diode (ELV/LED) technology which will deliver a significant reduction in carbon emissions.

Novice Driver Licensing System Reforms

The Tasmanian Novice Driver Licensing System Reforms will be implemented in accordance with the Tasmanian Road Safety Strategy 2007-2016. The reforms focus on increased safety based measures for learner and provisional drivers and include measures such as the extension of the minimum time required to hold a learner licence, and increased penalties for learner and provisional drivers. The final phase specifically focuses on new, practical driving assessments.

Racing Integrity Services

The Racing Integrity Services aim to increase the integrity reputation of the Tasmanian Racing Industry for the delivery of racing products to local, national and international markets. The initiative provides additional funding of $165 000 per annum for the training of racing officials and for increased levels of drug detection testing.

Tasmanian Racing Board

The Tasmanian Racing Board is responsible for the corporate governance, strategic direction and funding of the Tasmanian racing industry. Previously funded by TOTE Tasmania Pty Ltd, the Government will, following the sale of TOTE Tasmania Pty Ltd, fund the Tasmanian Racing Board from the Consolidated Fund. This funding arrangement provides a secure funding model for the Tasmanian Racing Board, including:

• revenue predictability;

• sufficient funding to appropriately develop the Tasmanian racing product;

• funding for an appropriate level of capital works;

• incentives for the Tasmanian Racing Board to become more self-sustaining by maximising its own source revenue; and

• funding transparency and simplicity.

Infrastructure Projects

In 2009-10, the Department will progress commitments by the State and Australian Governments on a range of road and rail projects. Details of these projects are provided in the Special Capital Investment Fund and Capital Investment Program sections of this chapter and in Chapter 7 of Budget Paper No 1 The Budget.

Infrastructure, Energy and Resources 6.3 OUTPUT INFORMATION

Outputs of the Department of Infrastructure, Energy and Resources are provided under the following Output Groups:

• Output Group 1 – Infrastructure;

• Output Group 2 – Energy Advisory and Regulatory Services;

• Output Group 3 – Mineral Resources Management and Administration;

• Output Group 4 – Support for the Minister for Energy and Resources;

• Output Group 5 – Racing Policy and Regulation; and

• Output Group 6 – Transport Subsidies and Concessions.

Table 6.2 provides an Output Group Expense Summary for the Department of Infrastructure, Energy and Resources.

6.4 Infrastructure, Energy and Resources Table 6.2: Output Group Expense Summary1 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Minister for Infrastructure

Output Group 1 – Infrastructure 1.1 Transport System Policy and Planning2 2 738) 1 912) 1 773) 1 772) 1 827) 1.2 Rail Safety3 407) 666) 512) 528) 530) 1.3 Road Safety4 6 404) 5 083) 6 430) 6 504) 4 802) 1.4 Registration and Licensing5 11 690) 11 872) 11 740) 11 779) 12 226) 1.5 Vehicle Operations 3 894) 3 412) 3 457) 3 444) 3 534) 1.6 Traffic Management and Engineering Services6 8 728) 8 796) 6 724) 5 705) 5 455) 1.7 Passenger Transport7 3 677) 3 329) 2 399) 2 139) 2 198) 37 538) 35 070) 33 035) 31 871) 30 572)

Output Group 6 - Transport Subsidies and Concessions 6.1 Bruny Island Ferry Service 654) 679) 706) 728) 749) 6.2 Furneaux Shipping Contract 248) 273) 284) 295) 307) 6.3 King Island Shipping 49) 49) 49) 49) 49) 6.4 CSO: Payment to Metro Tas Pty Ltd8 28 544) 29 683) 30 984) 31 991) 32 951) 6.5 School Bus Operators: Contract Services8 18 078) 18 995) 19 900) 20 373) 20 807) 6.6 Urban Bus Service 1 599) 1 624) 1 705) 1 777) 1 830) 6.7 Construction of Streets in Towns 52) 52) 52) 52) 52) 49 224) 51 355) 53 680) 55 265) 56 745)

Grants and Subsidies 21 702) 21 954) 22 641) 23 767) 25 553)

Capital Investment Program9 137 715) 137 204) 138 645) 143 579) 149 837)

Special Capital Investment Funds10 5 546) 4 019) 2 265) 2 020) 2 020)

Minister for Racing

Output Group 5 - Racing Policy and Regulation 5.1 Racing Regulation11 3 252) 3 427) 3 532) 3 647) 3 702) 5.2 Racing Policy12 89) 72) 76) 86) 86) 3 341) 3 499) 3 608) 3 733) 3 788)

Infrastructure, Energy and Resources 6.5 Table 6.2: Output Group Expense Summary1 (continued) 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Grants and Subsidies13 1 060) 27 000) 27 203) 27 339) 27 612)

Minister for Energy and Resources

Output Group 2 - Energy Advisory and Regulatory Services 2.1 Energy Policy and Advice14 2 121) 1 849) 1 946) 1 969) 1 990)

Output Group 3 - Mineral Resources Management and Administration 3.1 Minerals Exploration and Land Management15 4 338) 3 740) 2 994) 3 052) 3 110) 3.2 Tenement Management of the Exploration and Minerals Industry16 3 325) 2 895) 3 083) 3 337) 3 387) 7 663) 6 635) 6 077) 6 389) 6 497)

Output Group 4 - Support for the Minister 4.1 Support for the Minister17 440) 530) 562) 586) 608)

Grants and Subsidies 4 091) 4 170) 4 260) 4 294) 4 429)

TOTAL 270 441) 293 285) 293 922) 300 812) 309 651)

6.6 Infrastructure, Energy and Resources 10. The movement in the Special Capital Investment Funds in 2009-10 and 2010-11 primarily reflects the expenditure profile of the Better Roads Program. 11. The increase in the Racing Regulation Output reflects the provision of additional funding of $165 000 per annum for Racing Integrity Services. 12. The decrease in the Racing Policy Output in 2009-10 reflects the impact of the Government's Budget Management Strategies. 13. The increase in Grants and Subsidies reflects funding provided to the Tasmanian Racing Board. 14. The decrease in the Energy Policy and Advice Output in 2009-10 reflects the impact of the Government's Budget Management Strategies. 15. The decrease in the Minerals Exploration and Land Management Output in 2010-11 reflects the completion of the 2006 Election commitment to fund TIGER 3D Modelling of the North East and North West, and Promotion of Mineral Opportunities in Tasmania. 16. The decrease in the Tenement Management of the Exploration and Minerals Industry Output in 2009-10 reflects the impact of the Government's Budget Management Strategies. 17. The increase in the Support for the Minister Output reflects additional funding provided to focus on building support for the Tasmanian forest industry brand in key international markets, and the transfer of funding for Forest Policy from the Department of Premier and Cabinet.

Infrastructure, Energy and Resources 6.7 Output Group 1: Infrastructure

Table 6.3 provides financial information for each Output under Output Group 1. A description of the Outputs follows the table.

Table 6.3: Summary Financial Information - Output Group 1 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) ) )Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Infrastructure

Expenses by Output1 1.1 Transport System Policy and Planning2 2 738) 1 912) 1 773) 1 772) 1 827) 1.2 Rail Safety3 407) 666) 512) 528) 530) 1.3 Road Safety4 6 404) 5 083) 6 430) 6 504) 4 802) 1.4 Registration and Licensing5 11 690) 11 872) 11 740) 11 779) 12 226) 1.5 Vehicle Operations 3 894) 3 412) 3 457) 3 444) 3 534) 1.6 Traffic Management and Engineering Services6 8 728) 8 796) 6 724) 5 705) 5 455) 1.7 Passenger Transport7 3 677) 3 329) 2 399) 2 139) 2 198) 37 538) 35 070) 33 035) 31 871) 30 572)

Retained Revenue 3 769) 3 713) 5 435) 5 471) 3 756)

Net Cost of Output Group 33 769) 31 357) 27 600) 26 400) 26 816)

Appropriation 32 671) 31 019) 27 296) 26 132) 26 548)

Notes: 1. The decrease in the Infrastructure Output Group reflects the impact of the Government's Budget Management Strategies. 2. The decrease in the Transport System Policy and Planning Output reflects the completion of the initial phase of the State Infrastructure Planning System. 3. The increase in the Rail Safety Output in 2009-10 reflects once-off funding provided for the implementation of Rail Safety Model legislation. 4. The decrease in the Road Safety Output in 2009-10 primarily reflects the completion of the 2006 Election commitment to fund the Boosting Driving Skills in Our Kids initiative, and a reclassification of funding from the Road Safety Levy to capital projects. The decrease in 2012-13 reflects the scheduled completion of the Road Safety Levy in December 2012. 5. The increase in the Registration and Licensing Output reflects the implementation of the Novice Driver Licensing Reforms and the transfer of Service Tasmania costs from the Department of Premier and Cabinet. The decrease in 2010-11 reflects the impact of the Government's Budget Management Strategies. 6. The increase in the Traffic Management and Engineering Services Output in 2009-10 reflects the carry forward of funding provided for Extra Low Voltage/Light Emitting Diode (ELV/LED) technology from 2008-09, and funding provided to the Burnie City Council for access to West Park Precinct. The decrease across the Forward Estimates reflects the completion of the ELV/LED project. 7. The decrease in the Passenger Transport Output reflects completion of the Core Passenger Services Review and the impact of the Government's Budget Management Strategies.

6.8 Infrastructure, Energy and Resources 1.1 Transport System Policy and Planning

This Output delivers effective policy and planning frameworks for the safe and efficient movement of people and freight. This includes the ongoing development and review of passenger and freight transport system policies, the development of transport and infrastructure strategies to enhance the economic and social development of the State, and development of regional transport plans, with a focus on the efficient movement of passengers and freight in all regions.

1.2 Rail Safety

This Output delivers Tasmania's rail regulatory safety regime. It aims to continuously improve rail safety through accreditation, auditing, safety investigation and enforcement.

1.3 Road Safety

This Output develops and supports strategic road safety initiatives and provides policy advice; encourages community involvement in the road safety effort through the establishment of partnerships with local government and their associated community organisations and networks; and develops and delivers road safety education and awareness programs, with a focus on:

• implementing and monitoring the first three year Action Plan initiatives under the Tasmanian Road Safety Strategy 2007-2016; and

• ongoing delivery of the 2006 Election commitment Road Safety at a Grassroots Level through further investment in Community Road Safety Partnerships (CRSP).

1.4 Registration and Licensing

This Output develops business policies and procedures; provides information; and delivers services relating to the registration of vehicles and licensing of drivers, with a focus on:

• the new Motor Registry System; and

• implementing the new Novice driver Licensing Reforms as part of the introduction of a fully graduated licensing system.

1.5 Vehicle Operations

This Output develops, encourages and enforces compliance with regulations for vehicle roadworthiness, standards, dimensions and mass limits, safe loading and operation of primarily heavy vehicles; and undertakes management of approved inspection stations and transport operator accreditation schemes.

1.6 Traffic Management and Engineering Services

This Output delivers cost-effective safety improvements to reduce the incidence of road crashes and provides specialist, technical traffic management and engineering solutions for the State Government, local road authorities, developers and the community, with a focus on:

• upgrading the State's traffic signal system infrastructure through the introduction of Extra Low Voltage/Light Emitting Diode (ELV/LED) lighting technology;

Infrastructure, Energy and Resources 6.9 • delivering the 2006 Election commitments for the State Blackspot Program and Linemarking on Local Government roads; and

• delivering specific projects under the auspices of the Tasmanian Road Safety Strategy 2007-2016.

1.7 Passenger Transport

This Output delivers passenger transport services that support the efficient, equitable, and appropriate movement of people, including the administration of targeted transport assistance schemes and subsidies for students, the unemployed, aged pensioners, and persons with disabilities, with a focus on:

• developing a regulatory and contractual framework conducive to the sustainable delivery of passenger transport services; and

• administering contracts for the delivery of regular passenger transport services in metropolitan, urban fringe, regional and rural areas.

Table 6.4: Performance Information - Output Group 1 Unit of 2006-07 2007-08 2008-09 2009-10 Performance Measure1,2 Measure Actual Actual Target Target

Service Level Agreements completed to acquire data for state infrastructure mapping Number na 6 9 11

Rail Safety compliance audits completed within agreed audit program timeframes % 100 100 100 100

Schools participating in road safety education (using the 9 and 10 Road Risk Reduction resource) % 30 60 80 100

Nominated teachers attending Professional Development for the 9 and 10 Road Risk Reduction resource % 30 60 80 100

Increasing the number of Local Government Community Road Safety Partnerships3 Number 18 24 24 26

Motor Registry System availability % 99.8 100.0 99.0 99.0

Transport Enquiry Service – percentage of calls answered % 93 86 95 95

Vehicles found to be unregistered of those checked4 % 0.81 0.86 0.75 0.70

Heavy vehicles found overweight % 8.7 5.2 7.0 7.0

Linemarking program achieved by the end of the financial year % 99 100 100 100

6.10 Infrastructure, Energy and Resources Table 6.4: Performance Information - Output Group 1 (continued) Unit of 2006-07 2007-08 2008-09 2009-10 Performance Measure1,2 Measure Actual Actual Target Target

Blackspot interventions in accordance with the program % …. 88 100 100

ELV/LED technology integrated into the existing traffic signals system5 % na na 24 20

Wheelchair accessible taxis (WATS) licensed Number 36 44 46 48

Bus contracts qualifying for a capital payment6 % na na 80.4 82.5

Notes: 1. In accordance with the Auditor-General's Report on Public Sector Performance Information (April 2008), the Department is progressing a comprehensive review of its performance measures to incorporate the Auditor-General's recommendations. Revised performance measures will be reflected in future Budget Papers and Annual Reports. 2. 'na' indicates that data is not available or measurement has not yet commenced. 3. There are 29 local government authorities in Tasmania. 4. This measure is based upon Automatic Number Plate Recognition cameras in accordance with the Memorandum of Understanding between the Department and the Motor Accidents Insurance Board (MAIB). 5. This is a ten-year program, with 70 per cent to be completed in the first three years and the remaining 30 per cent (which represents the more complex and time consuming projects) to be completed over the final seven years of the program. 6. As part of implementing recommendations from the Core Passenger Services Review, new service contracts with bus operators were finalised in December 2008. The new service contracts qualify for a capital payment if operators invest in newer buses. The current average age of the bus fleet is 16.64 years.

Tasmania Together

Infrastructure, Energy and Resources 6.11 Output Group 2: Energy Advisory and Regulatory Services

Table 6.5 provides financial information for the single Output under Output Group 2. A description of the Output follows the table.

Table 6.5: Summary Financial Information - Output Group 2 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) ) )Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Energy Advisory and Regulatory Services

Expenses by Output 2.1 Energy Policy and Advice1 2 121) 1 849) 1 946) 1 969) 1 990) 2 121) 1 849) 1 946) 1 969) 1 990)

Retained Revenue2 930) 447) 466) 476) 476)

Net Cost of Output Group 1 191) 1 402) 1 480) 1 493) 1 514)

Appropriation 1 189) 1 400) 1 478) 1491) 1 512)

Notes: 1. The decrease in the Energy Policy and Advice Output in 2009-10 reflects the impact of the Government's Budget Management Strategies. 2. The decrease in Retained Revenue reflects the change to the administration of Australian Government funding resulting from the Council of Australian Governments (COAG) Intergovernmental Agreement on Federal Financial Relations.

2.1 Energy Policy and Advice

This Output provides strategic advice and support to the Minister on energy policy. The aim is to maintain an efficient and effective regulatory structure for the Tasmanian energy sector, with a focus on:

• advancing Tasmania's interests in National Energy Market reforms and developments;

• issues affecting Tasmania's energy market, particularly with regard to energy security and emergency preparedness;

• administering an agreed energy program in Tasmania in partnership with the Australian Government; and

• advancing Tasmania's interests in national energy policy developments.

6.12 Infrastructure, Energy and Resources Table 6.6: Performance Information - Output Group 2 Unit of 2006-07 2007-08 2008-09 2009-10 Performance Measure1,2 Measure Actual Actual Target Target

Policy Advice Provision of effective support to the Government by providing information and advice to enable informed decision making3 Satisfaction Satisfied 4 ≥ 4 ≥ 4

National Energy Market Development Promote and protect Tasmanian interests in national energy market developments and reforms4 Outcomes Satisfied 4 ≥ 4 ≥ 4

Emergency Preparedness Maintain adequate frameworks to deal with major emergencies in electricity, gas or oil5 Adequacy na 4 ≥ 4 ≥ 4

Notes: 1. In accordance with the Auditor-General's Report on Public Sector Performance Information (April 2008), the Department is progressing a comprehensive review of its performance measures to incorporate the Auditor-General's recommendations. Revised performance measures will be reflected in future Budget Papers and Annual Reports. 2. 'na' indicates that data is not available or measurement has not yet commenced. 3. Prior to 2007-08, satisfaction was measured by feedback from the Minister's Office and the Director of Energy and Planning based on a two point scale, either Satisfied or Unsatisfied. From 2007-08 the survey process has been refined and the measures assessed using a five-point scale where four is rated 'good'. 4. Prior to 2006-07, National Energy Market Development was included in a general stakeholder survey within the Department. From 2007-08 onwards, this measure involves a five-point scale where four is rated 'good'. 5. This measure was assessed for the first time in 2007-08 by the Energy Coordination Advisory Committee using a five-point scale where four is rated 'good'.

Infrastructure, Energy and Resources 6.13 Output Group 3: Mineral Resources Management and Administration

Table 6.7 provides financial information for each Output under Output Group 3. A description of the Outputs follows the table.

Table 6.7: Summary Financial Information - Output Group 3 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) ) )Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Mineral Resources Management and Administration

Expenses by Output 3.1 Minerals Exploration and Land Management1 4 338) 3 740) 2 994) 3 052) 3 110) 3.2 Tenement Management of the Exploration and Minerals Industry2 3 325) 2 895) 3 083) 3 337) 3 387) 7 663) 6 635) 6 077) 6 389) 6 497)

Retained Revenue3 856) 776) 776) 776) 776)

Net Cost of Output Group 6 807) 5 859) 5 301) 5 613) 5 721)

Appropriation 7 108) 6 158) 5 598) 5 908) 6 016)

Notes: 1. The movement in the Minerals Exploration and Land Management Output in 2010-11 reflects the completion of the 2006 Election commitment to fund TIGER 3D Modelling of the North East and North West, and Promotion of Mineral Opportunities in Tasmania. 2. The decrease in the Tenement Management of the Exploration and Minerals Industry Output in 2009-10 reflects the impact of the Government's Budget Management Strategies. 3. The decrease in Retained Revenue reflects the change to the administration of Australian Government funding resulting from the Council of Australian Governments (COAG) Intergovernmental Agreement on Federal Financial Relations.

3.1 Minerals Exploration and Land Management

This Output facilitates mineral exploration infrastructure development and fosters and encourages responsible land management in Tasmania, with a focus on:

• improving the quality and quantity of geoscience information, including the development of a revised three dimensional geological model of the State, with a view to encouraging mineral exploration; and

• promoting Tasmania nationally and internationally through targeted and strategic marketing as highly prospective for mineral exploration and mining.

6.14 Infrastructure, Energy and Resources 3.2 Tenement Management of the Exploration and Minerals Industry

This Output ensures the responsible management of the State's mineral resources and a fair and sustainable return to the community when mineral or petroleum resources are developed through regular inspections of mining tenements and the evaluation of environmental performance and resource production, with a focus on:

• administering legal titles for mining tenements; and

• managing royalty regimes and collecting fees and rentals.

Table 6.8: Performance Information - Output Group 3 Unit of 2006-07 2007-08 2008-09 2009-10 Performance Measure1 Measure Actual Actual Target Target

Area covered by modern remote sensing data with subsequent 1:25 000 geological mapping coverage2 % 44.8 44.9 50.0 52.0

Programmed abandoned mining lands rehabilitation projects completed % 88 100 100 100

Infrastructure, Energy and Resources 6.15 Output Group 4: Support for the Minister for Energy and Resources

Table 6.9 provides financial information for the single Output under Output Group 4. A description of the Output follows the table.

Table 6.9: Summary Financial Information - Output Group 4 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) ) )Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Support for the Minister

Expenses by Output 4.1 Support for the Minister1 440) 530) 562) 586) 608) 440) 530) 562) 586) 608)

Net Cost of Output Group 440) 530) 562) 586) 608)

Appropriation 435) 525) 557) 581) 603)

Note: 1. The increase in the Support for the Minister Output reflects additional funding provided to focus on building support for the Tasmanian forest industry brand in key international markets, and the transfer of funding for Forest Policy from the Department of Premier and Cabinet.

4.1 Support for the Minister

This Output provides high-level support on resource policy and management issues including the provision of advice relating to Government Business Enterprises and statutory authorities, with a focus on:

• forest policy projects of strategic importance, such as the Regional Forest Agreement and the Tasmanian Community Forest Agreement;

• major mining developments in the State, with a particular focus on national and international marketing and liaison with industry; and

• providing informed comment with a focus on building support for the Tasmanian forest industry brand in international markets.

6.16 Infrastructure, Energy and Resources Table 6.10: Performance Information - Output Group 4 Unit of 2006-07 2007-08 2008-09 2009-10 Performance Measure1 Measure Actual Actual Target Target

User Satisfaction Survey2 Set and maintain high standards in administrative process and policy development that meet the needs of the end-user: Minister Satisfaction Satisfied Satisfied Satisfy Satisfy Agency – Secretary / Deputy Secretary Satisfaction Satisfied Satisfied Satisfy Satisfy

Infrastructure, Energy and Resources 6.17 Output Group 5: Racing Policy and Regulation

Table 6.11 provides financial information for each Output under Output Group 5. A description of the Outputs follows the table.

Table 6.11: Summary Financial Information - Output Group 5 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Racing Policy and Regulation

Expenses by Output 5.1 Racing Regulation1 3 252) 3 427) 3 532) 3 647) 3 702) 5.2 Racing Policy2 89) 72) 76) 86) 86) 3 341) 3 499) 3 608) 3 733) 3 788)

Retained Revenue 500) 536) 536) 536) 536)

Net Cost of Output Group 2 841) 2 963) 3 072) 3 197) 3 252)

Appropriation 2 819) 2 941) 3 050) 3 175) 3 230)

Notes: 1. The increase in the Racing Regulation Output reflects the provision of additional funding of $165 000 per annum for Racing Integrity Services. 2. The decrease in the Racing Policy Output in 2009-10 reflects the impact of the Government's Budget Management Strategies.

5.1 Racing Regulation

This Output delivers probity and integrity services to the racing industry by registering race clubs, registering and licensing industry participants, the provision of handicapping and grading services, the provision of stipendiary stewards and registration and regulation of bookmakers and their agents, with a focus on:

• ensuring compliance with the requirements of the Racing Regulation Act 2004; and

• enforcing national and local Rules of Racing for each racing code.

5.2 Racing Policy

This Output delivers high-level research, analysis and policy advice to the Minister for Racing on a range of issues relating to the Tasmanian racing industry, with a focus on developing, implementing and evaluating racing policy in Tasmania, with reference to local and national developments in the sector.

6.18 Infrastructure, Energy and Resources Table 6.12: Performance Information - Output Group 5 Unit of 2006-07 2007-08 2008-09 2009-10 Performance Measure1,2 Measure Actual Actual Target Target

Swabs taken by stewards3 Number 1 811 2 520 2 650 2 900

Positive swabs to swabs taken4 % 1.21 0.39 0.40 0.20

Suspensions, disqualifications and fines imposed by stewards on licensed persons5 Number 251 250 389 330

Suspensions, disqualifications and fines appealed to the Tasmanian Racing Appeal Board Number 42 44 30 28

Appeals to the Tasmanian Racing Appeal Board where conviction quashed6 % 12 6 7 0.5 Number 5 2 2 1

Licence applications received Number 1 539 1 622 1 620 1 650

Licence applications not referred to Licensing Panel approved within 14 days7 % 94 97 100 100

Applications to the Integrity Assurance Board8 Number na na na 10

Races handicapped9 Number 815 738 755 750

Races handicapped requiring a redraw due to errors Number 2 2 1 2

Races graded Number 1 546 1 564 1 550 1 555

Races graded requiring a redraw due to errors10 Number 1 8 1 ….

Notes: 1. In accordance with the Auditor-General's Report on Public Sector Performance Information (April 2008), the Department is progressing a comprehensive review of its performance measures to incorporate the Auditor-General's recommendations. Revised performance measures will be reflected in future Budget Papers and Annual Reports. 2. 'na' indicates that data is not available or measurement has not yet commenced. 3. The increase in this measure is due to additional funding directed at this activity in 2007-08 and 2008-09. 4. The increase in this measure in 2006-07 reflects a number of positive swabs in relation to HPC. 5. The movement in targets reflects higher vigilance by stewards on target areas. 6. The movement in the targets reflect improved training programs for stewards. 7. Until 31 December 2008, interviews were conducted by Regulatory Panels. Following an industry restructure, interviews are now conducted by Racing Services Tasmania Licensing Panel. 8. The Integrity Assurance board was established on 1 January 2009. 9. The number of races conducted is determined by the Tasmanian Racing Board. 10. The errors in 2007-08 refer to one race meeting where two nomination forms were misplaced. This error impacted on eight races.

Infrastructure, Energy and Resources 6.19 Output Group 6: Transport Subsidies and Concessions

Table 6.13 provides financial information for each Output under Output Group 6. A description of the Outputs follows the table.

Table 6.13: Summary Financial Information - Output Group 6 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Transport Subsidies and Concessions

Expenses by Output 6.1 Bruny Island Ferry Service 654) 679) 706) 728) 749) 6.2 Furneaux Shipping Contract 248) 273) 284) 295) 307) 6.3 King Island Shipping 49) 49) 49) 49) 49) 6.4 CSO: Payment to Metro Tas Pty Ltd1 28 544) 29 683) 30 984) 31 991) 32 951) 6.5 School Bus Operators: Contract Services1 18 078) 18 995) 19 900) 20 373) 20 807) 6.6 Urban Bus Service 1 599) 1 624) 1 705) 1 777) 1 830) 6.7 Construction of Streets in Towns 52) 52) 52) 52) 52) 49 224) 51 355) 53 680) 55 265) 56 745)

Net Cost of Output Group 49 224) 51 355) 53 680) 55 265) 56 745)

Appropriation 49 224) 51 355) 53 680) 55 265) 56 745)

Note: 1. The increases in the CSO Payment to Metro Tas Pty Ltd and the School Bus Operators: Contract Services reflects increased demand for, and cost of services.

6.1 Bruny Island Ferry Service

This Output relates to contract payments for the provision of the Bruny Island Ferry Service.

6.2 Furneaux Shipping Contract

This Output relates to contract payments for the provision of a shipping service to the Furneaux Group of Islands.

6.3 King Island Shipping

This Output relates to contingency arrangements to assist King Island residents with shipping services in accordance with a Partnership Agreement with the King Island Council.

6.20 Infrastructure, Energy and Resources 6.4 CSO: Payment to Metro Tasmania Pty Ltd

This Output relates to the application of various direct and indirect subsidies to bus fares to support Metro Tasmania Pty Ltd in delivering services to all passenger groups.

6.5 School Bus Operators: Contract Services

This Output relates to contract payments to operators of rural school buses during the school year.

6.6 Urban Bus Service

This Output relates to contract payments to Mersey Bus and Coach Pty Ltd for the provision of urban bus services in the Devonport metropolitan area.

6.7 Construction of Streets in Towns

This Output contributes to the construction of streets as provided under the Local Government (Highways) Act 1982.

Infrastructure, Energy and Resources 6.21 SPECIAL CAPITAL INVESTMENT FUNDS

Table 6.14 identifies expenditure by the Department from the Government's Special Capital Investment Funds.

Table 6.14: Special Capital Investment Fund (SCIF) Allocations Estimated) 2009-10) 2010-11) 2011-12) 2012-13) Total) ) Forward) Forward) Forward) Cost) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Urban Renewal and Heritage Fund Oatlands Underground Power Lines 270) 216) ....) ....) ....) Stanley Underground Power Lines 290) 290) ....) ....) ....) Tasman Bridge Facilities Upgrade 505) 320) 185) ....) ....) 826) 185) ....) ....)

Major Capital Projects Fund Better Roads Fund 25 000) 1 681) 150) ....) ....) 1 681) 150) ....) ....)

Infrastructure Tasmania Fund Brighton Transport Hub1 79 000) 9 500) 8 000) ....) ....) Tarkine Drive 23 000) 8 800) 12 200) 1 175) ....) 18 300) 20 200) 1 175) ....)

Total SCIF Allocations 20 807) 20 535) 1 175) ....)

Note: 1. The total cost of the Brighton Transport Hub is $79.0 million. The project is fully State funded with $23.0 million allocated from the Infrastructure Tasmania Fund and $56.0 million from the Capital Investment Program.

Urban Renewal and Heritage Fund

The $25.0 million Urban Renewal and Heritage Fund was established in 2007-08 to provide funding for the restoration of heritage assets and the renewal of urban areas in various communities throughout Tasmania. Funding allocated to the Department in 2009-10 provides for underground power lines in Oatlands and Stanley, and improved cycle and pedestrian access on the Tasman Bridge. Further details on the Urban Renewal and Heritage Fund are provided in Chapter 4 of Budget Paper No 2 Government Services.

Better Roads Fund

A $25.0 million fund was established in 2004-05 for the improvement of road infrastructure. It is estimated that $1.7 million of the $25.0 million total allocation will be spent during 2009-10 on the Sisters Hills project.

6.22 Infrastructure, Energy and Resources Brighton Transport Hub

The total cost of the Brighton Transport Hub is $79.0 million. The project is fully State funded with $23.0 million allocated from the Infrastructure Tasmania Fund and $56.0 million from the Capital Investment Program. The Brighton Transport Hub will function as the major southern intermodal logistics centre, providing facilities for a range of transport operators. It will also improve rail operation efficiency.

Tarkine Drive

Funding of $23.0 million was allocated in 2008-09 over four years for the establishment of the Tarkine Drive. The proposal involves a 127 kilometre bitumen road, skirting the Tarkine from Wynyard on the North Coast through to Arthur River on the West Coast, to complete a tourist loop road to Smithton and Stanley. Most of the drive already exists – 116 kilometres of gravel roads and tracks, and 18 kilometres of existing bitumen road. Only 5.4 kilometres of new road is required to link the existing gravel road sections

The Tarkine Drive will provide greater opportunities for visitors to access a number of iconic attractions in the region. The redevelopment will include nature trails, visitor facilities and interpretive services at key sites. It is anticipated that the development will deliver significant economic and community benefits to the region.

It is estimated that $8.8 million of the $23.0 million allocation will be spent during 2009-10, with the project to be completed by 2012.

Infrastructure, Energy and Resources 6.23 CAPITAL INVESTMENT PROGRAM

Table 6.15 provides financial information for the Department's Capital Investment Program. For more information on the Capital Investment Program, see Chapter 7 in Budget Paper No 1 The Budget.

Table 6.15: Capital Investment Program Estimated) 2009-10) 2010-11) 2011-12) 2012-13) Total) Forward) Forward) Forward) Cost) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

New Projects Nation Building - Economic Stimulus Plan: Black Spots 4 014) 2 007) ....) ....) ....) Nation Building - Economic Stimulus Plan: High Risk Rail Crossings 3 940) 3 580) ....) ....) ....) Brighton Transport Hub1 79 000) 23 487) 14 680) 6 720) 10 600) Port Sorell Main Road 4 000) ....) ....) 4 000) ....) Rail - Boyer to Karanja 30 000) ....) 5 000) 14 500) 10 000) Rail - Capacity improvements Rhyndaston 24 000) 4 000) 7 000) 7 000) 6 000) Rail - Main Line Improvements 31 600) 3 500) 8 500) 10 600) 9 000) Rail - Upgrade North West Line to Wiltshire 30 000) ....) 5 000) 14 500) 10 000) Rail - West Coast Mines Upgrades 11 700) ....) 5 000) 6 200) ....) ) 36 574) 45 180) 63 520) 45 600)

Continuing Projects Asset Management Ongoing) 5 294) 5 414) 5 501) 5 645) Bagdad Bypass 6 230) 3 820) 1 070) ....) ....) Bell Bay Intermodal Terminal 9 120) 800) 6 920) 1 400) ....) Bridgewater Bridge Refurbishment 14 000) 7 500) ....) ....) ....) Brighton Bypass 164 000) 46 575) 64 450) 40 575) ....) Brooker Highway 10 000) 4 500) 3 662) ....) ....) Bruny Island Road Sealing 4 900) 2 500) 1 800) ....) ....) Central Highlands - Main Access Routes 8 000) 3 848) ....) ....) ....) Environmental Management Ongoing) 465) 475) 501) 514) Illawarra Main Road 6 200) 4 500) 1 300) ....) ....) Infrastructure Development2 Ongoing) 19 877) 31 301) 113) 120) Infrastructure Maintenance Ongoing) 54 603) 56 774) 57 843) 59 268) Jetties 5 000) 1 300) 600) ....) ....) Kingston Bypass 30 000) 7 500) 4 500) 15 600) ....) Lyell Highway - Granton to New Norfolk 14 000) 5 138) ....) ....) ....) Macquarie Street Traffic Flow 1 500) 843) ....) ....) ....) North East Freight Roads 42 500) 2 000) 11 000) 10 000) 18 000) Program Management Ongoing) 2 780) 2 849) 2 829) 2 908)

6.24 Infrastructure, Energy and Resources Table 6.15: Capital Investment Program (continued) Estimated) 2009-10) 2010-11) 2011-12) 2012-13) Total) Forward) Forward) Forward) Cost) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Continuing Projects (continued) Rail - Administration Ongoing) 3 950) 3 950) 3 450) 3 450) Rail - Infrastructure Development3 78 000) 16 750) 9 170) 5 830) 7 180) Rail - Infrastructure Maintenance 40 000) 4 308) 4 415) 4 415) 4 415) Road Safety and Traffic Management Ongoing) 13 299) 11 427) 11 908) 9 620) Tasman Highway - Sorell Traffic Management 2 500) 1 878) ....) ....) ....) South Arm Road 10 000) 996) 3 000) ....) ....) Strategic Planning and Policy Ongoing) 2 450) 2 510) 2 601) 2 663) Tea Tree Secondary Road 4 000) 2 700) ....) ....) ....) 220 174) 226 587) 162 566) 113 783)

Total CIP Allocations 256 748) 271 767) 226 086) 159 383)

Notes: 1. The total cost of the Brighton Transport Hub is $79.0 million. The project is fully State funded with $23.0 million allocated from the Infrastructure Tasmania Fund and $56.0 million from the Capital Investment Program. 2. The Infrastructure Development funding primarily reflects funding for the East Tamar Highway project. 3. The Rail-Infrastructure Development allocation reflects funding provided by the Australian Government.

Roads Program

The Roads Program directly contributes to the achievement of the Departmental outcome of a safe, accessible and equitable transport system that enhances economic development.

Major Roads Program activities funded from the Capital Investment Program during 2009-10 include:

• construction of the Brighton Transport Hub;

• completion of the improvement works for the Lyell Highway from Granton to New Norfolk;

• completion of the upgrade of the main access routes to the Central Highlands; and

• ongoing bridge maintenance.

The State Government, in conjunction with the Australian Government, will continue planning and commence construction on the following key projects as part of the Australian Government's 2007 Election commitments:

• Bell Bay Intermodal Terminal;

• Bridgewater Bridge Refurbishment;

• Brighton Bypass;

• Kingston Bypass; and

Infrastructure, Energy and Resources 6.25 • North East Freight Roads.

Building Better Infrastructure

The Government allocated an additional $79.3 million over five years as part of the 2006 Election commitment Building Better Infrastructure for Roads and Jetties.

In 2009-10, funding will be allocated for:

• construction on the Brooker Highway;

• upgrading of the junction of Illawarra Main Road and Poatina Main Road;

• finalising works at Tea Tree Secondary Road;

• continuing traffic management and major upgrades at a number of junctions along the South Arm Road from the Shoreline Roundabout to the Police Academy;

• continuing traffic management solutions to improve the flow of traffic from the Southern Outlet and along Macquarie Street;

• continuing major works on the Main Access Routes to Central Highlands;

• traffic management improvements in Sorell at junctions along the Tasman and Arthur Highways; and

• improving safety and providing a more consistent road standard on the Lyell Highway from Granton to New Norfolk.

Jetties

As part of the Government's 2006 Election commitment for Building Better Infrastructure, funding will be allocated in 2009-10 to Marine and Safety Tasmania (MAST) to reconstruct the Margate Jetty. The Margate Jetty provides important infrastructure for commercial fishermen.

Rail Management

In 2009-10, the Department will facilitate the sustainable operation of the Government's rail assets through the effective administration of maintenance and capital improvement programs.

Rail Projects

The Australian Government has committed, as part of its 2007 Election campaign, to fully fund the following rail infrastructure projects:

• main line rail improvements;

• rail capacity improvements Rhyndaston; and

• upgrades of the Derwent Valley, North West and West Coast Mines rail lines.

Negotiations are continuing with the Australian Government regarding the timing of this funding.

6.26 Infrastructure, Energy and Resources DETAILED BUDGET STATEMENTS

Table 6.16: Income Statement 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Revenue Revenue from Appropriation1 263 342) 325 454) 326 621) 313 134) 250 957) Fines and Regulatory Fees2 9 963) 9 965) 9 984) 9 994) 5 855) Interest Revenue3 2 103) 2 773) 75) ....) ....) Grants4 17 463) 21 876) 21 604) 2 244) 1 069) Sales of Goods and Services 550) 584) 618) 654) 654) Other Revenue 1 046) 1 046) 1 046) 1 046) 1 046) 294 467) 361 698) 359 948) 327 072) 259 581)

Less Expenses Employee Entitlements 30 882) 32 955) 33 135) 34 576) 35 424) Superannuation 3 623) 3 610) 3 895) 4 026) 4 125) Depreciation and Amortisation 87 084) 90 974) 95 429) 99 969) 104 731) Grants and Transfer Payments 53 121) 53 706) 55 070) 56 641) 58 112) Supplies and Consumables5 66 638) 56 316) 49 669) 47 497) 46 896) Other Expenses 2 240) 2 600) 2 620) 2 703) 2 769) 243 588) 240 161) 239 818) 245 412) 252 057)

Plus Gains/(Losses) Gain (Loss) on Sale of Non-Financial Assets 4) 4) 4) 4) 4) 4) 4) 4) 4) 4)

Equals OPERATING RESULT 50 883) 121 541) 120 134) 81 664) 7 528)

Plus Other Movements in Equity Revaluations of Non-Financial Assets 132 982) 128 106) 131 387) 132 674) 134 198) Other Non-Owner Movements in Equity ....) ....) ....) ....) ....) 132 982) 128 106) 131 387) 132 674) 134 198)

Equals COMPREHENSIVE INCOME 183 865) 249 647) 251 521) 214 338) 141 726)

Notes: 1. The movement in Revenue from Appropriation reflects expenditure on major infrastructure projects funded from the Capital Investment Program. 2. The decrease in the Fines and Regulatory Fees in 2012-13 reflects the scheduled completion of the Road Safety Levy program in December 2012. 3. Interest Revenue reflects interest received on $60.0 million provided by the Australian Government for the East Tamar Highway Project. All funds will be spent by 2010-11, with any interest earnings allocated to the project.

Infrastructure, Energy and Resources 6.27 4. The movement in Grants primarily reflects funding provided by the Government for the Special Capital Investment Fund projects. 5. The decrease in Supplies and Consumables primarily reflects the impact of the Government's Budget Management Strategies.

Table 6.17: Revenue from Appropriation 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Annual Appropriation Recurrent 93 394) 93 346) 91 607) 92 500) 94 602) Works and Services1 169 896) 232 056) 234 962) 220 582) 156 303) 263 290) 325 402) 326 569) 313 082) 250 905)

Reserved by Law Contribution towards Construction of Streets in Towns by Municipal Councils (Local Government Act 1993) 52) 52) 52) 52) 52) 52) 52) 52) 52) 52)

Total Revenue from Appropriation - Controlled 263 342) 325 454) 326 621) 313 134) 250 957)

Note: 1. The increase in Works and Services reflects funding for the Capital Investment Program. Details of the Department's Capital Investment Program are provided at Table 6.15.

6.28 Infrastructure, Energy and Resources Table 6.18: Income Statement – Administered 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Revenue Revenue from Appropriation1 25 287) 51 558) 52 538) 53 834) 56 028) Taxation2 26 176) 29 388) 30 034) 30 695) 31 407) Fines and Regulatory Fees3 7 025) 10 661) 10 802) 11 047) 11 365) Grants4 64 403) 417) 417) 417) 417) Sales of Goods and Services5 48 238) 24 289) 23 509) 23 591) 23 733) Other Revenue6 2 061) 33) 33) 33) 33) 173 190) 116 346) 117 333) 119 617) 122 983)

Less Expenses Employee Entitlements 1 656) 1 656) 1 674) 1 656) 1 710) Superannuation 192) 192) 192) 192) 190) Depreciation and Amortisation 1) 1) 1) 1) 1) Grants and Transfer Payments7 24 151) 50 422) 51 384) 52 698) 54 842) Supplies and Consumables 696) 696) 696) 696) 696) Transfer to the Consolidated Fund4 146 458) 63 693) 63 700) 64 338) 65 510) Other Expenses 157) 157) 157) 157) 155) 173 311) 116 817) 117 804) 119 738) 123 104)

Plus Gains/(Losses) Gain/(Loss) on Sale of Non-Financial Assets8 1) 351) 351) 1) 1) 1) 351) 351) 1) 1)

Equals OPERATING RESULT (120) (120) (120) (120) (120)

Plus Other Movements in Equity Revaluations of Non-Financial Assets ....) ....) ....) ....) ....) Other Non-Owner Movements in Equity ....) ....) ....) ....) ....)

Equals COMPREHENSIVE INCOME (120) (120) (120) (120) (120)

Notes: 1. The increase in Revenue from Appropriation primarily reflects the provision of funding for the Tasmania Racing Board; and demand and indexation factors relating to Transport Subsidies and Concessions. These increases are partially offset by the completion of the initial phase of the Access to Port of St Helens project. 2. The increase in Taxation reflects a review of concessions and entitlements to Motor Vehicles registration concessions and other charges. 3. The increase in Fines and Regulatory Fees reflects the five year periodic licensing renewal profile, additional revenues as part of the implementation of the Novice Driver Licensing Reforms, and the introduction of new concession verification procedures for eligible concession card holders.

Infrastructure, Energy and Resources 6.29 4. The decrease in Grants and Transfers to the Consolidated Fund reflects the change to the administration of Australian Government funding resulting from the Council of Australian Governments (COAG) Intergovernmental Agreement on Federal Financial Relations. 5. The decrease in Sales of Goods and Services primarily reflects a decrease in mineral royalties as a result of reduced activity in the mining sector and lower commodity prices. 6. The movement in Other Revenue reflects reclassification of revenues to other more appropriate revenue items. 7. The increase in Grants and Transfer payments primarily reflects the funding provided for the Tasmanian Racing Board. 8. The increase in Gain/(Loss) on Sale of Non-Financial Assets reflects additional sales of steel from maintenance of the rail network.

6.30 Infrastructure, Energy and Resources Table 6.19: Administered Revenue 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Revenue Collected on Behalf of the Consolidated Fund Australian Government Capital Grants1 64 248) 262) 262) 262) 262) Driver's Licences2 4 926) 7 613) 7 809) 8 008) 8 274) Fines 12) 12) 12) 12) 12) MAIB Commission3 2 519) 2 073) 2 125) 2 178) 2 231) Motor Vehicle Taxes and Fees4 26 176) 29 388) 30 034) 30 695) 31 407) Other Revenue5 2 036) 8) 8) 8) 8) Other Sales of Services 1 333) 1 349) 1 365) 1 381) 1 398) Personalised and Custom Plates 365) 305) 317) 330) 402) Photo Licence Fees 1 331) 1 544) 1 583) 1 623) 1 668) Regulatory Fees5 702) 1 437) 1 342) 1 347) 1 353) Royalty Income6 42 739) 19 280) 18 420) 18 420) 18 420) Sales of Goods 33) 33) 33) 33) 33) Vehicle Inspection Services Fees 38) 39) 40) 41) 42) 146 458) 63 343) 63 350) 64 338) 65 510)

Revenue from Appropriation Annual Appropriation 25 287) 51 558) 52 538) 53 834) 56 028)

Other Revenue Fines 16) 16) 16) 16) 16) Grants from Non-Government Sector 155) 155) 155) 155) 155) Other Revenue 25) 25) 25) 25) 25) Sales of Goods 1 249) 1 249) 1 249) 1 249) 1 249) 1 445) 1 445) 1 445) 1 445) 1 445)

Total Administered Revenue 173 190) 116 346) 117 333) 119 617) 122 983)

Notes: 1. The decrease in Australian Government Capital Grants primarily reflects the change to the administration of Australian Government funding resulting from the Council of Australian Governments (COAG) Intergovernmental Agreement on Federal Financial Relations. 2. The increase in Driver's Licences reflects the five year periodic licensing renewal profile, additional revenues as part of the implementation of the Novice Driver Licensing Reforms, and the introduction of new concession verification procedures for eligible concession card holders. 3. The decrease in MAIB Commission in 2009-10 reflects a more accurate estimate of the expected revenue profile. 4. The increase in Motor Vehicles Taxes and Fees primarily reflects a slower than expected take-up rate of concessions following a review of concessions and entitlements to Motor Vehicles registration concessions and other charges. 5. The decrease in Other Revenue and increase in Regulatory Fees primarily reflects a reclassification of revenue items. 6. The decrease in Royalty income reflects decreased activity in the mining sector and lower commodity prices.

Infrastructure, Energy and Resources 6.31

Table 6.20: Administered Expenses 2008-09) 2009-10) 2010-11) 2011-12) 2012-13 ) ) ) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Grants and Subsidies Contribution to Marine and Safety Tasmania1 2 050) 1 050) 1 050) 1 050) 1 050) Conveyance Allowance2 851) 894) 938) 985) 1 034) National Transport Commission (NTC): Local Government Contribution 1 500) 1 500) 1 500) 1 500) 1 500) Payments on Behalf of the Forest Practices Authority 2 780) 2 823) 2 867) 2 912) 2 959) Payments to School Bus Operators: Route Services2 13 152) 14 415) 14 578) 15 020) 17 809) Pensioner Air Travel Subsidy 8) 8) 8) 8) 8) Pensioner, Aged and Unemployed Concessions (Private Operators)2 862) 1 482) 1 831) 2 332) 1 136) Private Forests Tasmania 1 311) 1 347) 1 393) 1 382) 1 470) Tasmanian Racing Assistance3 1 060) 27 000) 27 203) 27 339) 27 612) Transport Access Scheme4 3 279) 2 605) 2 736) 2 872) 3 016) 26 853) 53 124) 54 104) 55 400) 57 594)

Transfer to the Consolidated Fund 146 458) 63 693) 63 700) 64 338) 65 510)

Total Administered Expenses 173 311) 116 817) 117 804) 119 738) 123 104)

Notes: 1. The decrease in funding for Marine and Safety Tasmania reflects completion of the initial phase of the Access to the Port of St Helens project. 2. The movement in the Conveyance Allowance; Payments to School Bus Operators: Route Services; and Pensioner, Aged and Unemployed Concessions (Private Operators) Outputs reflects implementation of the Core Passenger Services Review and anticipated increases in cost and demand. 3. The increase in the Tasmanian Racing Assistance reflects funding provided to the Tasmanian Racing Board. 4. The decrease in the Transport Access Scheme reflects the introduction of an electronic billing system and a reduction in demand.

Contribution to Marine and Safety Tasmania

This contribution supports Marine and Safety Tasmania in carrying out its functions of managing the Government's non-commercial marine facilities and Tasmania's marine regulatory environment.

Conveyance Allowance

The Department administers allowances paid to parents and guardians for the cost of transporting full-time students by private car to the nearest bus stop, or school, in areas that are not serviced by government subsidised bus services. Allowances are also paid to some Bass Strait Islands residents.

6.32 Infrastructure, Energy and Resources National Transport Commission (NTC): Local Government Contribution

Under the reform measures that abolished local road tolls in favour of national heavy vehicle charges, $1.5 million is provided annually from motor tax receipts to local government to compensate for loss of revenues from heavy vehicles.

Payments on Behalf of the Forest Practices Authority

This payment represents the State Government's contribution to the Forest Practices Authority (FPA). The role of the FPA is to advance the objective of the State's forest practices system and to foster a cooperative approach towards policy development and management.

Payments to School Bus Operators: Route Services

In accordance with Government policy, provision is made for payments to operators of private route service buses to supplement the fare revenue from students which is set at levels significantly below the commercial adult fare.

Pensioner Air Travel Subsidy

Aged pensioner residents of the Bass Strait Islands are entitled to an air fare subsidy when travelling between the Bass Strait Islands and Launceston or Hobart.

Pensioner, Aged and Unemployed Concessions (Private Operators)

These payments are made to operators of non-metropolitan fare charging bus services for the difference between the full adult fare and the 50 per cent concession fare paid by eligible pensioners and unemployed persons.

Private Forests Tasmania

This payment represents the State Government's contribution to Private Forests Tasmania (PFT). PFT's objective is to facilitate and expand the development of the private forest resource in Tasmania in a manner that is consistent with sound forest land management practice.

Tasmanian Racing Assistance

The Government will separately fund the Tasmanian Racing Industry under a legally binding deed, which will provide secure funding and create certainty for the industry. The annual funding allocation of $27.0 million (indexed from 2009-10) will allow the Tasmanian Racing Board to facilitate key administration roles and functions, including the responsibility for the corporate governance, strategic direction and funding of the Tasmanian Racing Industry, as well as ratification of national rules, the making of local rules and the setting of licence standards and criteria.

Transport Access Scheme

A range of concessions and benefits are available under the Transport Access Scheme to people with permanent physical or intellectual disabilities to enable them to use the range of transport facilities available to the general community.

Infrastructure, Energy and Resources 6.33 Table 6.21: Balance Sheet as at 30 June 2009) 2010) 2011) 2012) 2013) ) ) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Assets Financial Assets Cash and Deposits1 61 538) 36 351) 5 770) 6 451) 7 132) Receivables 1 123) 1 265) 1 265) 1 265) 1 265) Other Financial Assets 5 868) 5 098) 5 099) 5 100) 5 101) 68 529) 42 714) 12 134) 12 816) 13 498)

Non-Financial Assets Land and Buildings 23 147) 24 251) 24 622) 24 980) 24 685) Infrastructure2 4 107 911) 4 758 587) 5 043 133) 5 259 272) 5 403 722) Plant and Equipment 11 914) 11 907) 11 352) 10 772) 9 922) Intangibles3 18 083) 16 136) 14 116) 12 096) 10 076) Assets Held for Sale 10) ....) ....) ....) ....) 4 161 065) 4 810 881) 5 093 223) 5 307 120) 5 448 405)

Total Assets 4 229 594) 4 853 595) 5 105 357) 5 319 936) 5 461 903)

Liabilities Employee Entitlements 9 045) 10 063) 10 304) 10 545) 10 786) Payables4 5 115) 3 220) 3 220) 3 220) 3 220) Other Liabilities 2 600) 3 373) 3 373) 3 373) 3 373) Total Liabilities 16 760) 16 656) 16 897) 17 138) 17 379)

NET ASSETS 4 212 834) 4 836 939) 5 088 460) 5 302 798) 5 444 524)

Equity Accumulated Funds 2 733 025) 2 793 440) 2 913 574) 2 995 238) 3 002 766) Asset Revaluation Reserve 1 478 498) 2 043 499) 2 174 886) 2 307 560) 2 441 758) Other Equity 1 311) ....) ....) ....) ....) Total Equity 4 212 834) 4 836 939) 5 088 460) 5 302 798) 5 444 524)

Notes: 1. The decrease in Cash and Deposits primarily reflects the expenditure of funds held by the Department for the construction of the East Tamar Highway and the transfer of the Urban Renewal and Heritage Fund to Finance-General during 2008-09. 2. The increase in Infrastructure reflects additional expenditure on infrastructure projects by the Government. 3. The decrease in Intangibles reflects the amortisation of the Motor Registry System costs. 4. The decrease in Payables reflects a more accurate estimate of this liability.

6.34 Infrastructure, Energy and Resources Table 6.22: Balance Sheet as at 30 June – Administered 2009) 2010) 2011) 2012) 2013) ) ) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Assets Financial Assets Cash and Deposits 3 048) 2 892) 2 787) 2 682) 2 577) Investments 278) 268) 268) 268) 268) Receivables1 3 120) 405) 405) 405) 405) Other Financial Assets1 2 469) 211) 211) 211) 211) 8 915) 3 776) 3 671) 3 566) 3 461)

Non-Financial Assets Plant and Equipment 2) 39) 39) 39) 39) 2) 39) 39) 39) 39)

Total Assets 8 917) 3 815) 3 710) 3 605) 3 500)

Liabilities Employee Entitlements 386) 394) 409) 424) 439) Payables1 705) 83) 83) 83) 83) Other Liabilities 1 889) 1 588) 1 588) 1 588) 1 588) Total Liabilities 2 980) 2 065) 2 080) 2 095) 2 110)

NET ASSETS 5 937) 1 750) 1 630) 1 510) 1 390)

Equity Accumulated Funds 5 937) 1 750) 1 630) 1 510) 1 390) Total Equity 5 937) 1 750) 1 630) 1 510) 1 390)

Note: 1. The decreases in Receivables, Other Financial Assets, and Payables reflects more accurate projections of these items based on 2007-08 actual results.

Infrastructure, Energy and Resources 6.35 Table 6.23: Cash Flow Statement 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Cash Flows from Operating Activities Cash Received Appropriation1 263 290) 325 402) 326 569) 313 082) 250 905) Reserved by Law 52) 52) 52) 52) 52) Fines and Regulatory Fees2 9 963) 9 965) 9 984) 9 994) 5 855) Interest Received3 2 103) 2 773) 75) ....) ....) Grants4 17 463) 21 876) 21 604) 2 244) 1 069) Sales of Goods and Services 550) 584) 618) 654) 654) GST Receipts 10 398) 10 398) 10 398) 10 398) 10 398) Other Receipts 1 046) 1 046) 1 046) 1 046) 1 046) 304 865) 372 096) 370 346) 337 470) 269 979)

Cash Paid Employee Entitlements (30 641) (32 714) (32 894) (34 335) (35 183) Superannuation (3 623) (3 610) (3 895) (4 026) (4 125) Grants and Transfer Payments (53 121) (53 706) (55 070) (56 641) (58 112) Supplies and Consumables5 (66 638) (56 316) (49 669) (47 497) (46 896) GST Payments (10 399) (10 399) (10 399) (10 399) (10 399) Other Payments (2 240) (2 600) (2 620) (2 703) (2 769) (166 662) (159 345) (154 547) (155 601) (157 484)

Net Cash Flows from Operating Activities 138 203) 212 751) 215 799) 181 869) 112 495)

Cash Flows from Investing Activities Sale of Fixed Assets 4) 4) 4) 4) 4) Purchase of Fixed Assets (163 651) (226 871) (246 384) (181 192) (111 818) Net Cash Flows from Investing Activities (163 647) (226 867) (246 380) (181 188) (111 814)

Net Increase/(Decrease) in Cash Held (25 444) (14 116) (30 581) 681) 681)

Cash at the Beginning of the Year 86 982) 50 467) 36 351) 5 770) 6 451) Cash at the End of the Year 61 538) 36 351) 5 770) 6 451) 7 132)

Notes: 1. The movements in Appropriation reflect expenditure on major infrastructure projects. 2. The decrease in the Fines and Regulatory Fees in 2012-13 reflects the scheduled completion of the Road Safety Levy program in December 2012. 3. The increase in Interest Received reflects interest received on $60.0 million provided by the Australian Government for the East Tamar Highway Project. All funds will be spent by 2010-11, with any interest earnings allocated to the project.

6.36 Infrastructure, Energy and Resources 4. The movement in Grants reflects a change to funding provided to the Department from the Government's Special Capital Investment Funds. 5. The decrease in Supplies and Consumables primarily reflects the impact of the Government's Budget Management Strategies.

Table 6.24: Cash Flow Statement – Administered 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Cash Flows from Operating Activities Cash Received Appropriation1 25 287) 51 558) 52 538) 53 834) 56 028) Taxation2 26 176) 29 388) 30 034) 30 695) 31 407) Fines and Regulatory Fees3 7 025) 10 661) 10 802) 11 047) 11 365) Grants4 64 403) 417) 417) 417) 417) Sales of Goods and Services5 48 238) 24 289) 23 509) 23 591) 23 733) Other Receipts6 2 061) 33) 33) 33) 33) 173 190) 116 346) 117 333) 119 617) 122 983)

Cash Paid Employee Entitlements (1 641) (1 641) (1 659) (1 641) (1 695) Superannuation (192) (192) (192) (192) (190) Grants and Transfer Payments7 (24 151) (50 422) (51 384) (52 698) (54 842) Supplies and Consumables (696) (696) (696) (696) (696) Transfers to the Consolidated Fund4 (146 458) (63 693) (63 700) (64 338) (65 510) Other Payments (157) (157) (157) (157) (155) (173 295) (116 801) (117 788) (119 722) (123 088)

Net Cash Flows From Operating Activities (105) (455) (455) (105) (105)

Cash Flows From Investing Activities Sale of Fixed Assets8 1) 351) 351) 1) 1) Purchase of Fixed Assets (1) (1) (1) (1) (1) Net Cash From Investing Activities ....) 350) 350) ....) ....)

Net Increase/(Decrease) In Cash Held (105) (105) (105) (105) (105)

Cash at the Beginning of the Year 3 153) 2 997) 2 892) 2 787) 2 682) Cash at the End of the Year 3 048) 2 892) 2 787) 2 682) 2 577)

Notes: 1. The increase in Appropriation primarily reflects the provision of additional funding for the Tasmania Racing Board; and demand and indexation factors relating to Transport Subsidies and Concessions. These increases are partially offset by the completion of the initial phase of the Access to Port of St Helens project. 2. The increase in Taxation reflects a review of concessions and entitlements to Motor Vehicles registration concessions and other charges.

Infrastructure, Energy and Resources 6.37 3. The increase in Fines and Regulatory Fees reflects the five year periodic licensing renewal profile, additional revenues as part of the implementation of the Novice Driver Licensing Reforms, and the introduction of new concession verification procedures for eligible concession card holders. 4. The decrease in Grants and Transfers to the Consolidated Fund reflects the change to the administration of Australian Government funding resulting from the Council of Australian Governments (COAG) Intergovernmental Agreement on Federal Financial Relations. 5. The decrease in Sales of Goods and Services primarily reflects a decrease in mineral royalties as a result of reduced activity in the mining sector and lower commodity prices. 6. The movement in Other Receipts primarily reflects a reclassification of revenue to other more appropriate revenue items. 7. The increase in Grants and Transfer payments primarily reflects the funding provided for the Tasmanian Racing Board. 8. The increase in Sale of Fixed Assets reflects additional sales of steel from maintenance of the rail network.

6.38 Infrastructure, Energy and Resources 7 DEPARTMENT OF JUSTICE

AGENCY OUTLINE

The Department of Justice provides services that maintain and promote rights and responsibilities, resolve disputes, and contribute to the aim of a safer and more inclusive society to benefit the Tasmanian community as a whole. The Department reports to the Attorney-General and Minister for Justice, Hon Lara Giddings MP; the Minister for Corrections and Consumer Protection and the Minister for Workplace Relations, Hon Lisa Singh MP; the Minister for Planning, Hon David Llewellyn MP; and the Minister for Veterans Affairs, Hon Graeme Sturges MP.

The Department provides administrative support for the Supreme and Magistrates Courts; Tasmanian Industrial Commission; Tasmanian Legal Aid Commission; Tasmanian Electoral Commission; Workers' Rehabilitation and Compensation Tribunal; WorkCover Tasmania Board; Forensic Tribunal, Guardianship and Administration Board; Mental Health Tribunal; Parole Board of Tasmania; the Poppy Advisory and Control Board; Resource Management and Planning Appeal Tribunal; Resource Planning and Development Commission; and the Sullivans Cove Waterfront Authority. It also supports the statutory offices of the Solicitor-General, Director of Public Prosecutions, Public Guardian and the Anti-Discrimination Commissioner. Each of these areas is separately accountable to Parliament.

The Department includes: Corrective Services; Crown Law; the Office of Consumer Affairs and Fair Trading; the Registry of Births, Deaths and Marriages; Workplace Standards Tasmania; Monetary Penalties Enforcement Service; Victims Support Services; Legislation Development and Review; Strategic Policies and Projects; Corporate Services; Industrial Relations (Private Sector); Land Use Planning; and the State Architect.

By working closely with the community, other parts of government and relevant statutory bodies, the Department aims to:

• increase the effectiveness of the justice system;

• improve the planning system;

• reduce workplace injury;

• protect and foster rights and responsibilities; and

• improve access to the justice system.

This chapter provides the Department's financial information for 2009-10 and the Forward Estimates period (2010-11 to 2012-13). Further information on the Department is available at http://www.justice.tas.gov.au.

Justice 7.1 MAJOR INITIATIVES

Table 7.1 provides a summary of the Budget and Forward Estimate allocations for major initiatives.

Table 7.1: Major Initiatives Statement 2009-10 2010-11 2011-12 2012-13 Forward Forward Forward Budget Estimate Estimate Estimate $'000 $'000 $'000 $'000

Franklin Wharf Redevelopment 1 000) ….) ….) ….) Prisons Infrastructure Redevelopment Program – Stage D ….) 500) 3 000) 13 500) Regional Settlement and Investment Strategies 500) ….) ….) ….) Seamless National Economy 542) ….) ….) ….)

Franklin Wharf Redevelopment

Franklin Wharf is at the centre of Sullivans Cove and is a popular destination for visitors and locals who are drawn to its waterfront location and setting in the heritage-rich surroundings of Sullivans Cove. The Sullivans Cove Waterfront Authority, in collaboration with Tasports, will prepare a management plan to better manage the increasing public use of the wharf and docks.

Improvements are proposed for an area that includes the edge of Constitution Dock, Victoria Dock and Watermans Dock; and the concrete apron connecting the docks and piers. The improvements will include revised car parking layout, new furniture and urban details and modifications to buildings.

Prisons Infrastructure Redevelopment Program – Stage D

Planning for Stage D of the Prisons Infrastructure Redevelopment Program will begin in 2010-11. The four year $20.2 million redevelopment involves the construction of an additional maximum security block at the Risdon Prison Complex.

Regional Settlement and Investment Strategies

The development of Regional Settlement and Investment Strategies will ensure that adequate and appropriately located land is available to accommodate the projected housing and employment needs of each Tasmanian region over the next 20 years. The Strategies are also intended to guide development and investment decisions to provide a pattern of settlement and infrastructure provision that is achievable, orderly, economic and sustainable, and that will be relevant to future needs, capabilities and potentials.

7.2 Justice Seamless National Economy

Under the National Partnership Agreement to Deliver a Seamless National Economy the Australian, state and territory governments have committed to progressing a reform agenda of the Business Regulation and Competition Working Group (BRCWG). The reform agenda includes:

• 27 deregulation reform priorities;

• eight priority areas for competition reform; and

• a commitment to develop and enhance existing processes for regulation-making and review.

Funding of $542 000 has been allocated to the Department under this reform to address requirements associated with business regulation and national licensing.

Tasmanian Planning Commission

The Tasmanian Planning Commission (TPC) was established in response to the 2008 Review of Governance Arrangements of the State's land use planning system. The TPC will have the same decision making functions as the existing Resource Planning and Development Commission (RPDC), and the same level of statutory independence in exercising those functions. It will also have an advisory role to the Minister for Planning. The composition of the Commission will be expanded to reflect the importance of infrastructure planning and water and sewerage reforms in land use planning. The Commission will be supported by an amalgamation of the staff from the RPDC and the Land Use Planning Branch.

Freedom of Information Act 1991 and Public Interest Disclosures Act 2002 Reviews

These reviews are being conducted as part of the Premier's Ten Point Plan to improve accountability and trust in Government. The outcomes of both reviews will be reflected in legislation that is intended to be considered by Parliament before the end of 2009, with implementation in early 2010.

Proposed changes to Freedom of Information include:

• replacing the current Freedom of Information Act 1991 with a Right to Information Act;

• greater proactive release of information by Government;

• an overarching public interest test;

• a reduced period of exemption for Cabinet information;

• clearer language to explain exemptions; and

• increased powers for external review and monitoring.

The review of the Public Interest Disclosures Act 2002 aims to provide better protection for public sector whistleblowers. Both reviews incorporate significant public and stakeholder consultation.

Justice 7.3 OUTPUT INFORMATION

Outputs of the Department of Justice are provided under the following Output Groups:

• Output Group 1 - Administration of Justice;

• Output Group 2 - Legal Services;

• Output Group 3 - Registration Services;

• Output Group 4 - Review Services;

• Output Group 5 - Electoral Services;

• Output Group 6 - Corrective Services;

• Output Group 7 - Other Services;

• Output Group 8 - Consumer Services;

• Output Group 9 - Industrial Relations Services;

• Output Group 10 - Resource Planning; and

• Output Group 11 - Workplace Services.

Table 7.2 provides an Output Group Expense Summary for the Department.

7.4 Justice Table 7.2: Output Group Expense Summary1 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Attorney-General and Minister for Justice

Output Group 1 - Administration of Justice 1.1 Supreme Court Services 9 114) 9 335) 9 431) 9 601) 9 755) 1.2 Magisterial Court Services 11 951) 11 861) 12 126) 12 368) 12 589) 1.3 Enforcement of Monetary Penalties2 4 412) 3 991) 3 989) 4 021) 4 071) 1.4 Support and Compensation for Victims of Crime and Others3 7 938) 9 172) 9 256) 9 347) 9 451) 1.5 Legal Aid4 5 582) 11 186) 11 455) 11 642) 12 033) 1.6 Mental Health Review and Guardianship Board Decisions 1 754) 1 735) 1 764) 1 805) 1 844) 40 751) 47 280) 48 021) 48 784) 49 743)

Output Group 2 - Legal Services 2.1 Crown Law 8 170) 8 048) 8 099) 8 140) 8 240) 2.2 Legislation Development and Review 638) 594) 596) 605) 616) 8 808) 8 642) 8 695) 8 745) 8 856)

Output Group 3 - Registration Services 3.1 Births Deaths and Marriages 1 278) 1 268) 1 280) 1 297) 1 314)

Output Group 4 - Review Services 4.1 Anti-Discrimination Commission 976) 991) 1 017) 1 048) 1 065)

Output Group 5 - Electoral Services 5.1 Elections and Referendums5 2 034) 5 166) 3 279) 3 090) 3 118)

Output Group 7 - Other Services 7.1 Supervision of Poppy and Hemp Crops 691) 641) 646) 654) 668)

Minister for Planning

Output Group 10 - Resource Planning 10.1 Land Use Planning6 2 014) 1 715) 969) 985) 1 006) 10.2 Resource Planning and Development Commission7 2 060) 2 296) 2 314) 2 342) 2 385) 10.3 Resource Management Planning Appeals Tribunal 1 393) 1 322) 1 373) 1 404) 1 440) 5 467) 5 333) 4 656) 4 731) 4 831)

Justice 7.5 Table 7.2: Output Group Expense Summary1 (continued) 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Grants and Subsidies 1 755) 1 755) 1 755) 1 755) 1 755)

Special Capital Investment Funds8 ....) 1 000) ....) ....) ....)

Minister for Corrections and Consumer Protection

Output Group 6 - Corrective Services 6.1 Prison Services1 49 008) 47 818) 47 453) 47 578) 48 277) 6.2 Community Corrective Services 4 817) 4 780) 4 809) 4 891) 5 006) 53 825) 52 598) 52 262) 52 469) 53 283)

Output Group 8 - Consumer Services 8.1 Fair, Safe and Equitable Marketplace 3 639) 3 841) 3 603) 3 636) 3 695)

Capital Investment Program9 739) ....) ....) ....) ....)

Minister for Workplace Relations

Output Group 9 - Industrial Relations Services 9.1 Services of the Tasmanian Industrial Commission 2 180) 2 166) 2 225) 2 294) 2 337) 9.2 Workers' Rehabilitation and Compensation Tribunal Decisions10 1 375) 1 172) 1 179) 1 173) 1 175) 9.3 Industrial Relations Policy and Advocacy Services 322) 287) 280) 278) 278) 3 877) 3 625) 3 684) 3 745) 3 790) Output Group 11 - Workplace Services 11.1 Workplace Standards11 10 808) 12 980) 12 751) 12 475) 12 699) 11.2 Employer and Employee Services12 4 813) 6 876) 6 917) 6 931) 6 957) 15 621) 19 856) 19 668) 19 406) 19 656)

TOTAL 139 461) 151 996) 148 566) 149 360) 151 774)

7.6 Justice 4. The increase in the Legal Aid Output primarily reflects grant funding from the Australian Government for Legal Aid due to changes to the administration of Australian Government funding from 2009-10 resulting from the Council of Australian Government's Intergovernmental Agreement on Federal Financial Relations. 5. The increase in the Elections and Referendums Output primarily reflects the estimated timing of the House of Assembly election in 2009-10, and a more accurate estimate based on current projections of the costs of undertaking local government and other elections by the Tasmanian Electoral Office. 6. The decrease in the Land Use Planning Output for 2009-10 primarily reflects the completion of funding associated with the Regional Planning Initiative, partly offset by additional funding associated with the Regional Settlement and Investment Strategies. The further decrease in 2010-11 reflects the completion of funding for the Regional Settlement and Investment Strategies. 7. The increase in the Resource Planning and Development Commission Output primarily reflects a more accurate estimate based on current projections of costs associated with assessment of applications from private sector developers. 8. The increase in Special Capital Investment Funds reflects the Franklin Wharf Redevelopment. 9. The decrease in the Capital Investment Program reflects the completion of the Upgrade of the Holding Cells at the Hobart Supreme Court. 10. The decrease in Workers' Rehabilitation and Compensation Tribunal Decisions primarily reflects a more accurate estimate based on current projections of the Depreciation expense associated with the Output. 11. The increase in the Workplace Standards Output primarily reflects a more accurate estimate based on current projections of costs associated with activities undertaken through the Building Administration Fund and the Building Practitioners Accreditation Scheme. 12. The increase in the Employer and Employee Services Output primarily reflects a more accurate estimate based of current projections associated with activities undertaken by WorkCover Tasmania.

Justice 7.7 Output Group 1: Administration of Justice

Table 7.3 provides financial information for each Output under Output Group 1. A description of the Outputs follows the table.

Table 7.3: Summary Financial Information - Output Group 1 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) ) ) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Administration of Justice

Expenses by Output 1.1 Supreme Court Services 9 114) 9 335) 9 431) 9 601) 9 755) 1.2 Magisterial Court Services 11 951) 11 861) 12 126) 12 368) 12 589) 1.3 Enforcement of Monetary Penalties1 4 412) 3 991) 3 989) 4 021) 4 071) 1.4 Support and Compensation for Victims of Crime and Others2 7 938) 9 172) 9 256) 9 347) 9 451) 1.5 Legal Aid3 5 582) 11 186) 11 455) 11 642) 12 033) 1.6 Mental Health Review and Guardianship Board Decisions 1 754) 1 735) 1 764) 1 805) 1 844) 40 751) 47 280) 48 021) 48 784) 49 743)

Retained Revenue 1 109) 1 119) 1 128) 1 139) 1 139)

Net Cost of Output Group 39 642) 46 161) 46 893) 47 645) 48 604)

Appropriation 38 134) 44 749) 45 578) 46 329) 47 288)

Notes: 1. The decrease in the Enforcement of Monetary Penalties Output in 2009-10 primarily reflects a reassessment of the useful life of the FIND, which has decreased the annual amortisation expense. 2. The increase in the Support and Compensation for Victims of Crime and Others Output primarily reflects a more accurate estimate of funding for the Court Mandated Diversion Program. 3. The increase in the Legal Aid Output primarily reflects grant funding from the Australian Government for Legal Aid due to changes to the administration of Australian Government funding from 2009-10 resulting from the Council of Australian Government's Intergovernmental Agreement on Federal Financial Relations.

1.1 Supreme Court Services

This Output is responsible for the timely and just resolution of civil and criminal matters in the Supreme Court. The Supreme Court has unlimited jurisdiction in criminal and civil matters and acts as a court of review for the Magistrates Court.

7.8 Justice 1.2 Magisterial Court Services

This Output facilitates the operation of Tasmania's four permanent Magistrates Courts in Hobart, Launceston, Devonport and Burnie and the 12 country courts in which Magistrates sit on a regular circuit basis.

1.3 Enforcement of Monetary Penalties

This Output is responsible for the collection and enforcement of monetary penalties imposed by courts and other authorities. It ensures that the integrity of orders for payment of fines is maintained and maximises the collection of revenue by utilising Service Tasmania shops, telephone systems and the Internet to provide avenues of payment for clients.

1.4 Support and Compensation for Victims of Crime and Others

This Output manages services provided by the Department and external providers to support victims in their recovery from the impacts of crime. The Output includes administration of the Criminal Injuries Compensation Scheme.

1.5 Legal Aid

This Output provides legal assistance and representation to those persons who would be disadvantaged if this assistance was not provided. It operates under State legislation and provides services in accordance with an Australian Government-State Government agreement.

1.6 Mental Health Review and Guardianship Board Decisions

This Output is responsible for:

• reviewing treatment, hospital and restriction orders made under the Mental Health Act 1996;

• examining applications, and appointing and reviewing the appointment of guardians, under the provisions of the Guardianship and Administration Act 1995;

• reviewing administrators and enduring guardians and consents for dental and medical procedures;

• instructing the creation of statutory wills under the Wills Act 2008, and reviewing the enduring powers of attorney for persons with a disability under the Powers of Attorney Act 2000; and

• the functions of the Tasmanian Forensic Tribunal.

Justice 7.9 Table 7.4: Performance Information - Output Group 1 Unit of 2006-07 2007-08 2008-09 2009-10 Performance Measure1 Measure Actual Actual Target Target

Supreme Court – Criminal Jurisdiction Pending cases older than 12 months2 % 13.3 7.8 10.0 10.0 Real net recurrent expenditure per finalisation3 $ 9 437 9 564 10 000 9 800

Supreme Court – Civil Jurisdiction Pending cases older than 12 months4 % 31.9 33.3 25.0 30.0 Real net recurrent expenditure per finalisation3,5 $ 2 285 2 600 2 700 2 700

Magistrates Court – Criminal Jurisdiction Pending cases older than six months % 34.0 28.1 31.0 30.0 Real net recurrent expenditure per finalisation3,6 $ 151 129 400 380

Magistrates Court – Youth Justice Division Pending cases older than six months % 29.1 28.6 20.0 20.0 Real net recurrent expenditure per finalisation3 $ 458 353 400 400

Magistrates Court – Civil Division Pending cases older than six months % 35.0 32.0 30.0 30.0 Real net recurrent expenditure per finalisation3,7 $ 78 81 60 80

Magistrates Court – Coronial Division Pending cases older than 12 months % 26.6 24.8 20.0 20.0 Real net recurrent expenditure per finalisation3 $ 1 188 2 362 1 000 1 900

Enforcement of Monetary Penalties Fine Collection Rate % 60.0 60.0 67.0 70.0

Notes: 1. Performance information for this Output Group previously included activity indicators. In accordance with the Auditor-General's Special Report No 72 Public Sector Performance Information, performance information now focuses on efficiency and effectiveness measures. 2. In 2007-08, the Supreme Court exceeded the national standard of less than 10 per cent for Pending cases older than 12 months due to an increase in the number of lodgements during the year, which resulted in a smaller proportion of cases being more than 12 months old at 30 June. 3. Actual 2006-07 amounts have changed from actual amounts published in the 2008-09 Budget to reflect the amounts in 2007-08 dollars, as published in the Report on Government Services 2009. 4. The 2009-10 Target for Pending cases older than 12 months in the Supreme Court Civil Jurisdiction has been increased slightly the target for 2008-09. The new target aims for a small improvement on the currently projected outcome for 2008-09. 5. Real net recurrent expenditure per finalisation for the Civil Division of the Supreme Court has been revised from that published in the 2008-09 Budget following a review of the application of the national counting rule to finalised cases in the Supreme Court. 6. The increase in the target for Real net recurrent expenditure per finalisation for the Magistrates Court Criminal Jurisdiction reflects the reduction in lodgements for minor traffic matters which are now dealt with by the Monetary Penalties Enforcement Service (MPES). Prior to the establishment of MPES these matters were dealt with by Justices of the Peace at a very low cost per transaction. However, this historically low expenditure per finalisation is not sustainable across the Court's remaining workload.

7.10 Justice 7. The increase in the target for Real net recurrent expenditure per finalisation for the Magistrates Court Civil Jurisdiction from the 2008-09 target reflects actual performance in 2007-08. The 2009-10 target aims for a small improvement on 2007-08 actual performance.

Performance Information Comments

Table 7.4 reports actual and target data for efficiency and effectiveness indicators as reported annually in Chapter 7 (Court Administration) of the Report on Government Services. The indicators are:

• Backlog indicator or Pending cases older than a given time period is an indicator of case processing timeliness. It is derived by comparing the age (in elapsed time) of a court's pending caseload against time standards. The indicator recognises that case processing must take some time and that this time does not necessarily equal delay. Timeliness is often affected by delays caused by factors outside the direct control of the court such as the preparedness and availability of the parties, prosecutors, legal representatives and witnesses.

• Cost per finalisation or real net recurrent expenditure per finalisation is an indicator of efficiency. This indicator is not a measure of the actual cost per case. It is derived by dividing the total net recurrent expenditure (Net expenditure refers to expenditure minus income, where income is derived from court fees and other revenue but excludes revenue from fines) within each court for the financial year by the total number of finalisations for the same period.

• Fine Collection Rate – an indicator of the effectiveness of the fines collection and enforcement process. It shows the value of penalties collected or satisfied during the period as a proportion of the net value (ie penalties imposed less penalties withdrawn) of penalties imposed.

Supreme Court – Criminal Jurisdiction

In the past year, there has been an increase in the number of defendants committed to the Supreme Court for indictable crimes. It is anticipated this will flow through to an increase in the number of defendants finalised and consequential reduction in the cost per finalisation.

The Court continues to aim to better the national standard of no more than 10 per cent of pending cases being older than 12 months. However, it should be noted that a relatively small number of cases can have a significant impact on these indicators.

Magistrates Court – Criminal Jurisdiction and Youth Justice Division

The Magistrates Court has implemented a number of initiatives aimed at reducing the proportion of cases older than 12 months old. It is anticipated these initiatives will lead to a modest improvement in pending cases indicator. The Youth Justice Division deals with young offenders under the Youth Justice Act 1997.

Magistrates Court – Coronial Division

The net recurrent expenditure per finalisation in the Coronial Division is particularly sensitive to the number of significant coronial hearings held in a year. The target for 2009-10 reflects expenditure per finalisation, which is below the all state and territory average for coronial jurisdictions.

Justice 7.11 Enforcement of Monetary Penalties

The fine collection rate is an indicator of the effectiveness of the enforcement of monetary penalties. The commencement of the Monetary Penalties Enforcement Act 2005 in April 2008 provides a wider range of tools for enforcing monetary penalties and to improve the fine collection rate. Output Group 2: Legal Services

Table 7.5 provides financial information for each Output under Output Group 2. A description of the Outputs follows the table.

Table 7.5: Summary Financial Information - Output Group 2 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) ) ) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Legal Services

Expenses by Output 2.1 Crown Law 8 170) 8 048) 8 099) 8 140) 8 240) 2.2 Legislation Development and Review 638) 594) 596) 605) 616) 8 808) 8 642) 8 695) 8 745) 8 856)

Retained Revenue1 2 742) 3 444) 3 470) 3 497) 3 497)

Net Cost of Output Group 6 066) 5 198) 5 225) 5 248) 5 359)

Appropriation2 6 069) 5 150) 5 177) 5 200) 5 311)

Notes: 1. The increase in Retained Revenue is due to changes in cost recovery arrangements for legal activities undertaken by the Crown Solicitor. 2. The decrease in Appropriation reflects changes in cost recovery arrangements for legal activities undertaken by the Crown Solicitor and is offset by an increase in Retained Revenue. Central agencies are now required to pay for legal services provided by the Crown Solicitor. This will provide the Crown Solicitor with revenue of approximately $700 000 per annum.

2.1 Crown Law

This Output aims to protect the interests of the Crown by providing legal services and advice. It also has responsibility for prosecution of serious offences and crimes.

7.12 Justice 2.2 Legislation Development and Review

This Output provides research services and policy advice to assist the Government and the Attorney-General with the formation of new policies and legislation. It provides support to the Attorney-General with matters involving the discharge of parliamentary, legal, and ministerial duties and participation in a range of ministerial councils. It also aims to ensure that laws meet contemporary needs and provides some services to other agencies in regards to legislative issues.

Table 7.6: Performance Information - Output Group 2 Unit of 2006-07 2007-08 2008-09 2009-10 Performance Measure Measure Actual Actual Target Target

Crown Law Chargeable Time – Office of the Crown Solicitor % 61 56 60 60 Chargeable time – Director of Public % 61 55 60 60 Prosecutions (Civil)

Performance Information Comments

The performance indicators for this Output Group focus on the demand for the services provided and the effective use of legal practitioners' time. The target of 60 per cent of practitioners' time being chargeable is based on the normal expectation in private practice.

Justice 7.13 Output Group 3: Registration Services

Table 7.7 provides financial information for the single Output under Output Group 3. A description of the Output follows the table.

Table 7.7: Summary Financial Information - Output Group 3 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) ) ) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Registration Services

Expenses by Output 3.1 Births Deaths and Marriages 1 278) 1 268) 1 280) 1 297) 1 314) 1 278) 1 268) 1 280) 1 297) 1 314)

Retained Revenue 306) 313) 319) 326) 326)

Net Cost of Output Group 972) 955) 961) 971) 988)

Appropriation 972) 949) 955) 965) 982)

3.1 Births Deaths and Marriages

This Output provides services involving the registration of a range of life events which legislation requires or enables to be registered. By the provision of these services, it aims to preserve the rights of individuals including the right to a unique identity.

Table 7.8: Performance Information - Output Group 3 Unit of 2006-07 2007-08 2008-09 2009-10 Performance Measure Measure Actual Actual Target Target

Unit Cost per Transaction $ 12.21 12.18 11.00 10.50 Registration within 3 days of receipt % 90 85 90 90 Certificates within 3 days of receipt1 % 23 60 95 90

Note: 1. Priority certificates are issued on same day of receipt of the application. Due to an increase in demand in 2006-07, the standard processing time lengthened to 10 working days.

7.14 Justice Performance Information Comments

The performance assessment for this Output Group focuses on efficiency and timeliness of this Output Group's service delivery.

Unit cost per transaction represents the aggregation of a wide range of transaction types. These transaction types include: the registration and provision of certificates for births, deaths and marriages; changes of name; paternity acknowledgment; legitimations; adoptions; and the registration of significant relationships.

The cost of each type of transaction may vary significantly from the aggregate measure. The unit cost per transaction measure is sensitive to variations in demand, as the Output Group has a high proportion of fixed costs. Output Group 4: Review Services

Table 7.9 provides financial information for the single Output under Output Group 4. A description of the Output follows the table.

Table 7.9: Summary Financial Information - Output Group 4 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) ) ) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Review Services

Expenses by Output 4.1 Anti-Discrimination Commissioner 976) 991) 1 017) 1 048) 1 065) 976) 991) 1 017) 1 048) 1 065)

Retained Revenue 107) 121) 137) 152) 152)

Net Cost of Output Group 869) 870) 880) 896) 913)

Appropriation 891) 864) 874) 890) 907)

4.1 Anti-Discrimination Commissioner

Operating under the Anti-Discrimination Act 1998, this Output involves the investigation and conciliation of claims regarding alleged discrimination and prohibited behaviour, and aims to promote human rights for all Tasmanians. The Output can refer unresolved claims to the Anti-Discrimination Tribunal and can also grant or reject applications for exemption from the Act.

Justice 7.15 Table 7.10: Performance Information - Output Group 4 Unit of 2006-07 2007-08 2008-09 2009-10 Performance Measure Measure Actual Actual Target Target

Percentage reduction in the number of accepted % complaints to the Tasmanian Anti-Discrimination Reduction Commissioner (TT)1 from 2005 30.0% 0.0% 2.5% 5.0%

Note: 1. (TT) denotes that this Performance Information is linked directly to a Tasmania Together benchmark.

Performance Information Comments

The number of complaints to the Tasmanian Anti-Discrimination Commissioner reflects not only the demand for the services provided by the Commissioner's Office, but is also a general indicator of the level of discrimination occurring in the Tasmanian community.

This indicator comes under Goal 5 of Tasmania Together: 'Vibrant; inclusive and growing communities where people feel valued and connected'. The benchmark seeks a five per cent reduction from the 2005 level by 2010 in the number of claims accepted by the Anti-Discrimination Commissioner.

Tasmania Together

7.16 Justice Output Group 5: Electoral Services

Table 7.11 provides financial information for the single Output under Output Group 5. A description of the Output follows the table.

Table 7.11: Summary Financial Information - Output Group 5 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) ) ) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Electoral Services

Expenses by Output 5.1 Elections and Referendums1,2 2 034) 5 166) 3 279) 3 090) 3 118) 2 034) 5 166) 3 279) 3 090) 3 118)

Retained Revenue2 250) 1 450) 1 450) 1 450) 1 450)

Net Cost of Output Group 1 784) 3 716) 1 829) 1 640) 1 668)

Appropriation1 1 772) 3 704) 1 817) 1 628) 1 656)

Notes: 1. The increase in the Elections and Referendums Output in 2009-10 primarily reflects the estimated timing of the House of Assembly election in 2009-10, and a more accurate estimate based on current projections of the costs of undertaking local government and other elections by the Tasmanian Electoral Office. The funding for the House of Assembly Election is a Reserved by Law item. 2. The increase in Retained Revenue primarily reflects a more accurate estimate based on current projections of costs recovered from undertaking local government and other elections by the Tasmanian Electoral Office.

5.1 Elections and Referendums

This Output Group is responsible for the provision of services for the administration of State elections and referendums. Through such services, it contributes to the preservation of the State's parliamentary democracy. It is also responsible for the management and maintenance of electoral rolls for State and local governments, administration of electoral and enrolment policy systems at a national level, and the implementation of electoral boundary redistributions.

Justice 7.17 Table 7.12: Performance Information - Output Group 5 Unit of 1998 2002 2006 2010 Performance Measure Measure Actual Actual Actual Target

House of Assembly Elections House of Assembly Election Participation Rate % 95.0 93.7 94.9 95.0 House of Assembly Rate of Informal Votes % 3.9 4.9 4.4 4.0

Unit of 2006-07 2007-08 2008-09 2009-10 Performance Measure Measure Actual Actual Target Target

Legislative Council Elections Legislative Council Election Participation Rate % 84.3 81.6 >89 85 Legislative Council Rate of Informal Votes % 3.0 4.2 <4 4 Legislative Council – Election Cost Per Enrolled $ 4.94 6.40 5.00 6.00 Elector Roll Maintenance Cost per Elector $ 0.63 0.65 0.65 0.67

Performance Information Comments

The performance indicators for this Output Group focus on the effectiveness and efficiency of the electoral process and maintenance of the electoral roll.

The Electoral Office breaks down effective votes by election (House of Assembly and Legislative Council) and by reporting separately on participation rate (ie proportion of enrolled voters who lodged a formal vote), and whether voters cast their votes correctly (ie informal votes as a proportion of the total votes cast).

While these indicators are not a priority for Tasmania Together, they continue to provide a measure of how well the tasks of the Electoral Commission are being undertaken.

7.18 Justice Output Group 6: Corrective Services

Table 7.13 provides financial information for each Output under Output Group 6. A description of the Outputs follows the table.

Table 7.13: Summary Financial Information - Output Group 6 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) ) ) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Corrective Services

Expenses by Output 6.1 Prison Services1 49 008) 47 818) 47 453) 47 578) 48 277) 6.2 Community Corrective Services 4 817) 4 780) 4 809) 4 891) 5 006) 53 825) 52 598) 52 262) 52 469) 53 283)

Retained Revenue2 2 890) 3 512) 3 560) 3 609) 3 609)

Net Cost of Output Group 50 935) 49 086) 48 702) 48 860) 49 674)

Appropriation 48 574) 45 879) 45 486) 45 635) 46 449)

Notes: 1. The decrease in Prison Services reflects the impact of the Government's Budget Management Strategies. 2. The increase in Retained Revenue primarily reflects a more accurate estimate based on current projections of the revenue generated by prison industries.

6.1 Prison Service

This Output aims to provide a safer Tasmania by ensuring the secure containment of inmates and offering them opportunities for rehabilitation and personal development. It maintains facilities that provide care and custody, at various levels of security, for inmates and persons detained in custody. It also provides safe secure transport between prison and courts.

6.2 Community Corrective Service

This Output supports a variety of non-custodial sentencing options. It is responsible for pre-parole reporting to the Parole Board, pre-sentence reporting to the Courts, community service order, probation and parole supervision. It provides these services in accordance with the Sentencing Act 1997, the Corrections Act 1997 and various other Acts that include sentencing provisions.

Justice 7.19 Table 7.14: Performance Information - Output Group 6 Unit of 2006-07 2007-08 2008-09 2009-10 Performance Measure Measure Actual Actual Target Target

Proportion of adult offenders convicted again within two years (TT)1,2 % 23.1 24.0 23.0 23.0

Number per 100 prisoner Prison Escape Rate – Secure Perimeter years 0.4 0.0 0.0 0.0

Number per 100 prisoner Prison Escape Rate – Open Perimeter years 0.0 5.0 2.0 2.0

Completion rate for community supervision orders % 86.0 85.3 90.0 90.0

Cost per Prisoner Day3 $ 248 256 240 240

Cost per Community Supervised Offender per day3 $ 8.97 10.55 11.00 11.00

Notes: 1. The indicator for 2007-08 refers to offenders completing their justice order two years earlier in 2005-06. 2. (TT) denotes that this Performance Information is linked directly to a Tasmania Together benchmark. 3. Actual 2006-07 amounts have been changed from actual amounts published in the 2008-09 Budget to reflect the amounts in 2007-08 dollars, as published in the Report on Government Services 2009.

Performance Information Comments

Table 7.14 reports actual and target data for efficiency and effectiveness indicators as reported for Tasmania Together and annually in Chapter 8 (Corrective Services) of the Report on Government Services. The indicators are:

• the effectiveness of the Output Group in reducing recidivism. The indicator shows the number of adults who have returned to corrections (either with a custodial order or a community based order from the Courts) within two years of being released from prison or completing a community based order for a previous offence as a proportion of all adults who completed a period of sentenced imprisonment or community supervision. The indicator only includes adults who have completed their first period of sentenced imprisonment or supervision based on an assumption that effective early intervention is required to minimise the chance that an offender will develop into a 'chronic recidivist offender'. This is indicator 1.6 under Goal 2 Tasmania Together: 'Confident, friendly and safe communities'. It should be noted that this indicator uses different counting rules from the four 'rate of return' indicators reported in the Report on Government Services;

• the effectiveness of the Output Group in ensuring the containment of prisoners and the compliance of offenders with community based orders; and

• the efficiency of the corrections system.

7.20 Justice Output Group 7: Other Services

Table 7.15 provides financial information for the single Output under Output Group 7. A description of the Output follows the table.

Table 7.15: Summary Financial Information - Output Group 7 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) ) ) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Other Services

Expenses by Output 7.1 Supervision of Poppy and Hemp Crops 691) 641) 646) 654) 668) 691) 641) 646) 654) 668)

Net Cost of Output Group 691) 641) 646) 654) 668)

Appropriation 687) 637) 642) 650) 664)

7.1 Supervision of Poppy and Hemp Crops

This Output aims to maintain a securely regulated poppy industry through responsibility for the licensing, inspection, supervision and management of the poppy industry from the growth stage, through to manufacture and export from Australia. It ensures that the cultivation of the poppy crop is performed in accordance with the Poisons Act 1971. It provides policy coordination, and preparation of advice to the Government, whilst liaising with private enterprise, Government agencies, growers and other appropriate bodies.

Table 7.16: Performance Information - Output Group 7 Unit of 2006-07 2007-08 2008-09 2009-10 Performance Measure Measure Actual Actual Target Target

Cost of Poppy Advisory Control Board per Hectare sown $ 68 71 55 33

Performance Information Comments

The performance indicator for this Output Group focuses on the efficiency of the Poppy Advisory and Control Board's supervision and protection activities. The target for 2009-10 reflects a projected growth in the number of hectares sown in the coming year which the Board expects to manage within existing resources.

Justice 7.21 Output Group 8: Consumer Services

Table 7.17 provides financial information for the single Output under Output Group 8. A description of the Output follows the table.

Table 7.17: Summary Financial Information - Output Group 8 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) ) ) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Consumer Services

Expenses by Output 8.1 Fair, Safe and Equitable Marketplace 3 639) 3 841) 3 603) 3 636) 3 695) 3 639) 3 841) 3 603) 3 636) 3 695)

Retained Revenue 418) 500) 500) 500) 500)

Net Cost of Output Group 3 221) 3 341) 3 103) 3 136) 3 195)

Appropriation 3 164) 3 283) 3 045) 3 078) 3 137)

8.1 Fair, Safe and Equitable Market Place

This Output provides services to the public and the Government which contribute to the maintenance of a fair, safe and equitable marketplace. It provides legislative and policy advice to the Government and provides advice, information and business registration procedures to the public. It also enforces product safety standards, promotes compliance with legislation and the move to national uniformity in a number of policy areas.

Table 7.18: Performance Information - Output Group 8 Unit of 2006-07 2007-08 2008-09 2009-10 Performance Measure Measure Actual Actual Target Target

Cost per Compliance Action $ 16.42 16.72 15.45 15.45

Performance Information Comments

The performance measures for this Output Group focus on the cost effectiveness of its compliance activities.

7.22 Justice Output Group 9: Industrial Relations Services

Table 7.19 provides financial information for each Output under Output Group 9. A description of the Outputs follows the table.

Table 7.19: Summary Financial Information - Output Group 9 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) ) ) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Industrial Relations Services

Expenses by Output 9.1 Services of the Tasmanian Industrial Commission 2 180) 2 166) 2 225) 2 294) 2 337) 9.2 Workers' Rehabilitation and Compensation Tribunal Decisions1 1 375) 1 172) 1 179) 1 173) 1 175) 9.3 Industrial Relations Policy and Advocacy Services 322) 287) 280) 278) 278) 3 877) 3 625) 3 684) 3 745) 3 790)

Retained Revenue 1 084) 1 117) 1 150) 1 185) 1 185)

Net Cost of Output Group 2 793) 2 508) 2 534) 2 560) 2 605)

Appropriation 2 599) 2 482) 2 508) 2 534) 2 579)

Note: 1. The decrease in Workers' Rehabilitation and Compensation Tribunal Decisions primarily reflects a more accurate estimate based on current projections of the Depreciation expense associated with the Output.

9.1 Services of the Tasmanian Industrial Commission

This Output is responsible for the creation of awards, approval of industrial agreements and the resolution of industrial disputes under the Industrial Relations Act 1984. These services are available to registered organisations, employers and employees from the public and private sectors, controlling authorities, and the relevant Ministers.

9.2 Workers' Rehabilitation and Compensation Tribunal Decisions

This Output provides support and makes decisions on matters regarding workers compensation disputes brought before the Workers' Rehabilitation and Compensation Tribunal by employers and employees.

Justice 7.23 9.3 Industrial Relations Policy and Advocacy Services

This Output provides policy advice to the Minister for Workplace Relations regarding Private Sector Industrial Relations.

Table 7.20: Performance Information - Output Group 9 Unit of 2006-07 2007-08 2008-09 2009-10 Performance Measure Measure Actual Actual Target Target

Clearance Rate1 % na na 100 100 Proportion of matters finalised within three months % na 76 76 76

Note: 1. The Clearance Rate is the number of applications finalised during a reporting period expressed as a percentage of those lodged during the same period.

Performance Information Comments

The clearance rate is a measure of the efficiency of the Commission's workload. A figure of 100 per cent indicates the Commission is keeping up with its work load, a figure of less than 100 per cent indicates that the Commission is falling behind.

The proportion of matters finalised within three months is an indicator of timeliness of resolution of disputes. Performance against this indicator is a measure of the effectiveness of the Commission's case management together with the preparation of the parties to the dispute. In the majority of cases where matters take longer than three months to settle the delay, this is at the instigation of the parties.

7.24 Justice Output Group 10: Resource Planning

Table 7.21 provides financial information for each Output under Output Group 10. A description of the Outputs follows the table.

Table 7.21: Summary Financial Information - Output Group 10 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) ) ) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Resource Planning

Expenses by Output 10.1 Land Use Planning1 2 014) 1 715) 969) 985) 1 006) 10.2 Resource Planning and Development Commission2 2 060) 2 296) 2 314) 2 342) 2 385) 10.3 Resource Management Planning Appeals Tribunal 1 393) 1 322) 1 373) 1 404) 1 440) 5 467) 5 333) 4 656) 4 731) 4 831)

Retained Revenue3 ....) 564) 314) 314) 314)

Net Cost of Output Group 5 467) 4 769) 4 342) 4 417) 4 517)

Appropriation1 5 455) 4 757) 4 330) 4 405) 4 505)

Notes: 1. The decrease in the Land Use Planning Output for 2009-10 primarily reflects the completion of the Regional Planning initiative, partly offset by additional funding associated with the Regional Settlement and Investment Strategies. The further decrease in 2010-11 reflects the completion of funding for the Regional Settlement and Investment Strategies. 2. The increase in the Resource Planning and Development Commission Output primarily reflects a more accurate estimate based on current projections of the costs associated with assessment of applications from private sector developers. 3. The increase in Retained Revenue in 2009-10 primarily reflects a more accurate estimate based on current projections of costs recovered associated with assessment of applications from private sector developers.

10.1 Land Use Planning

This Output conducts policy development in strategic land use planning and provides professional planning policy advice to the Department, the Minister for Planning, local government and other relevant government agencies. This Output also includes the State Architect who provides strategic and independent advice to the Tasmanian Government on a range of matters including planning, urban design and building architecture.

Justice 7.25 10.2 Resource Planning and Development Commission

This Output has a range of statutory responsibilities including:

• the approval of planning schemes and amendments under the Land Use Planning and Approvals Act 1993;

• the assessment of State Policies and projects of State significance as provided under the State Policies and Projects Act 1993;

• preparation of the State of the Environment Report; and

• inquiries in accordance with the Public Land (Administration and Forests) Act 1991.

10.3 Resource Management Planning Appeal Tribunal

This Output provides for the hearing of appeals regarding heritage, planning, marine and environmental decisions and determines applications for orders under relevant legislation.

Table 7.22: Performance Information - Output Group 10 Unit of 2006-07 2007-08 2008-09 2009-10 Performance Measure Measure Actual Actual Target Target

Proportion of substantive decisions of Resource Management Planning Appeal Tribunal resolved by mediation (consent) % 74.6 77.6 75 78

Performance Information Comments

The settlement of disputes through mediation (consent) provides a fair and cost effective way of resolving disputes. The Tribunal is committed to the continued use of mediation to resolve disputes. The targets have been set to increase the proportion of disputes resolved through mediation but it should be noted that the decision to resolve by mediation rests with the parties involved, not the Tribunal.

7.26 Justice Output Group 11: Workplace Services

Table 7.23 provides financial information for each Output under Output Group 11. A description of the Outputs follows the table.

Table 7.23: Summary Financial Information - Output Group 111 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) ) ) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Workplace Services

Expenses by Output 11.1 Workplace Standards2 10 808) 12 980) 12 751) 12 475) 12 699) 11.2 Employer and Employee Services3 4 813) 6 876) 6 917) 6 931) 6 957) 15 621) 19 856) 19 668) 19 406) 19 656)

Retained Revenue2,3 3 369) 7 536) 7 536) 7 536) 7 536)

Net Cost of Output Group 12 252) 12 320) 12 132) 11 870) 12 120)

Appropriation 12 156) 11 829) 11 641) 11 379) 11 629)

Notes: 1. The Workplace Standards Output now includes Safety Standards and Compliance, Workplace Standards and Advice, and Electricity Industry Regulation. These Outputs were separately identified in the 2008-09 Budget Papers. The Outputs have been continued as a single Output to better reflect the operations of the Department. 2. The increase in the Workplace Standards Output primarily reflects a more accurate estimate based on current projections of the costs and revenue recovered from activities undertaken through the Building Administration Fund and the Building Practitioners Accreditation scheme. 3. The increase in the Employer and Employee Services Output primarily reflects a more accurate estimate based on current projections of the costs and revenue recovered from activities undertaken by WorkCover Tasmania.

11.1 Workplace Standards

This Output aims to improve or administer:

• health and safety at work;

• the safety with which dangerous goods are transported, handled and stored;

• Tasmania's workers' compensation scheme; and

• legislation, standards, codes of practice, licensing, registration and accreditation procedures to ensure an appropriate level of regulation.

This Output also provides strategic policy advice to the Minister for Workplace Relations, the Government, the WorkCover Tasmania Board and, where required, to the Australian Government Minister for Employment and Workplace Relations.

Justice 7.27 11.2 Employer and Employee Services

This Output focuses on activities undertaken through the WorkCover Tasmania Board including activities for improving and administering Tasmania's workers compensation scheme and the Workplace Health and Safety Act 1995.

Table 7.24: Performance Information - Output Group 11

Unit of 2006-07 2007-08 2008-09 2009-10 Performance Measure Measure Actual Actual Target Target

Claims per 1 000 Safety of Workers – rates of serious injury1 employees 15.4) 14.9) 13.2) 11.5) All Claims Frequency Rate – all industries2 Rate 30.8) na) 28.0) 28.0)

Notes: 1. The Safety of Workers reflects the incidence rates of serious compensated injury and musculoskeletal claims per 1 000 employees. Serious claims include accepted workers compensation claims for temporary incapacity involving one or more weeks of compensation, plus claims for fatality and permanent incapacity. The nationally agreed target for Tasmania is 9.84 by 2012. 2. The All Claims Frequency Rate is a measure of the frequency of occurrence of all workplace injuries and illnesses, relative to the amount of time workers are exposed to risk. It is derived by dividing the number of workers' compensation claims lodged over a particular period by the number of hours worked by employees exposed to risk during the same period, multiplied by one million.

Performance Information Comments

Workplace Standards Tasmania aims to reduce the rate of claims for serious injury through its administration of a range of legislation which aims to protect the safety of workers and other persons.

Workplace Standards conducts accident and incident investigations, undertakes audits for compliance with legislation, delivers awareness and educational programs and assesses and processes licences and permits for key occupations.

7.28 Justice SPECIAL CAPITAL INVESTMENT FUNDS

Table 7.25 identifies expenditure by the Department from the Government's Special Capital Investment Funds.

Table 7.25: Special Capital Investment Fund (SCIF) Allocations Estimated) 2009-10) 2010-11) 2011-12) 2012-13) Total) ) Forward) Forward) Forward) Cost) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Urban Renewal and Heritage Fund Franklin Wharf Redevelopment 1 000) 1 000) ....) ....) ....)

Total SCIF Allocations ) 1 000) ....) ....) ....)

Franklin Wharf Redevelopment

Franklin Wharf is at the centre of Sullivans Cove and is a popular destination for visitors and locals who are drawn to its waterfront location and setting in the heritage-rich surroundings of Sullivans Cove. The Sullivans Cove Waterfront Authority in collaboration with Tasports will prepare a management plan to better manage the increasing public use of the wharf and docks.

Improvements are proposed for an area that includes the edge of Constitution Dock, Victoria Dock and Watermans Dock; and the concrete apron connecting the docks and piers. The improvements include a revised car parking layout, new furniture and urban details and modifications to buildings.

Further details about the project are available on the Sullivans Cove Waterfront Authority website www.waterfront.tas.gov.au.

Justice 7.29 CAPITAL INVESTMENT PROGRAM

Table 7.26 provides financial information for the Department's Capital Investment Program. For more information on the Capital Investment Program, see Chapter 7 in Budget Paper No 1 The Budget.

Table 7.26: Capital Investment Program Estimated) 2009-10) 2010-11) 2011-12) 2012-13) Total) Forward) Forward) Forward) Cost) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Continuing Projects Prisons Infrastructure Redevelopment Program 20 170) ....) 500) 3 000) 13 500)

Total CIP Allocations ) ....) 500) 3 000) 13 500)

Prisons Infrastructure Redevelopment Program – Stage D

7.30 Justice DETAILED BUDGET STATEMENTS

Table 7.27: Income Statement 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Revenue Revenue from Appropriation1 132 743) 124 533) 122 553) 125 693) 138 607) Fines and Regulatory Fees2 10) 2 382) 2 382) 2 382) 2 382) Interest Revenue 40) 80) 80) 80) 80) Grants3 3 271) 1 000) ....) ....) ....) Sales of Goods and Services4 6 659) 8 062) 8 131) 8 203) 8 203) Other Revenue5 2 295) 8 902) 8 971) 9 043) 9 043) 145 018) 144 959) 142 117) 145 401) 158 315)

Less Expenses Employee Entitlements 71 419) 71 700) 70 718) 71 121) 72 824) Superannuation 6 900) 6 750) 6 807) 6 958) 7 131) Depreciation and Amortisation6 5 037) 4 465) 4 465) 4 465) 4 465) Grants and Transfer Payments7 6 038) 12 647) 11 916) 12 103) 12 494) Supplies and Consumables 29 674) 31 928) 30 132) 30 051) 30 071) Other Expenses8 18 638) 22 751) 22 773) 22 907) 23 034) 137 706) 150 241) 146 811) 147 605) 150 019)

Equals OPERATING RESULT 7 312) (5 282) (4 694) (2 204) 8 296)

Plus Other Movements in Equity Revaluations of Non-Financial Assets ....) ....) ....) ....) ....) Other Non-Owner Movements in Equity ....) ....) ....) ....) ....)

Equals COMPREHENSIVE INCOME 7 312) (5 282) (4 694) (2 204) 8 296)

Notes: 1. The decrease in Revenue from Appropriation in 2009-10 largely reflects the completion of funding for the Prisons Infrastructure Redevelopment Program – Stage C ($11.4 million in 2008-09) and the completion of Hobart Supreme Court upgrade of holding cells ($874 000). 2. The increase in Fines and Regulatory Fees primarily reflects a more accurate estimate based on current projections of the revenue recovered from activities undertaken through the Building Administration Fund and the Building Practitioners Accreditation scheme. 3. The decrease in Grants is due to the transfer of Australian Government revenue from the Department to Finance-General from 2009-10. This reflects changes to the administration of Australian Government Funding from 2009-10 resulting from the Council of Australian Government's Intergovernmental Agreement on Federal Financial Relations. This decrease is partly offset by additional funding from the Special Capital Investment Funds for the Franklin Wharf Redevelopment. 4. The increase in Sales of Goods and Services reflects a more accurate estimate based on current projections of the revenue generated by prison industries and increased revenue estimates for the Crown Solicitor due to changes in cost recovery arrangements.

Justice 7.31 5. The increase in Other Revenue reflects a more accurate estimate based on current projections of costs recovered from undertaking local government and other elections by the Tasmanian Electoral Office, and costs recovered from the assessment of applications from private sector developers by the Resource Planning and Development Commission and activities undertaken by WorkCover Tasmania. 6. The decrease in Depreciation and Amortisation primarily reflects a reassessment of the useful life of the FIND, which has decreased the annual amortisation expense. 7. The increase in Grants and Transfer Payments primarily reflects grant funding from the Australian Government for Legal Aid due to changes to the administration of Australian Government Funding from 2009-10 resulting from the Council of Australian Government's Intergovernmental Agreement on Federal Financial Relations. 8. The increase in Other Expenses primarily reflects a more accurate estimate based on current projections for expenditure of the Court Mandated Diversion Program and activities undertaken by WorkCover Tasmania.

Table 7.28: Revenue from Appropriation 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Annual Appropriation Recurrent 109 072) 110 585) 109 935) 110 378) 112 592) Works and Services1 12 270) ....) 500) 3 000) 13 500) 121 342) 110 585) 110 435) 113 378) 126 092)

Reserved by Law Victims of Crime Assistance Act 1976 Section 11(4): Payments 2 500) 2 500) 2 500) 2 500) 2 500) Expenses of Aboriginal Land Council of Tasmania Elections (Aboriginal Lands Act 1995, Section 17) 25) 25) 25) 25) 25) Expenses of Parliamentary Elections and Referendums (Electoral Act 2004 and Referendum Procedures Act 2004)2 923) 2 890) 966) 795) 806) Expenses under the Legislative Council Electoral Boundaries Act 1995 10) 10) 10) 10) 10) Salaries of Judges (Supreme Court Act 1887) 2 655) 2 765) 2 879) 3 002) 3 065) Salaries of Magistrates (Magistrates Court Act 1987) 4 115) 4 285) 4 464) 4 656) 4 754) Salary and Travelling Allowance, Associate Judge of the Supreme Court (Supreme Court Act 1959) 348) 362) 377) 393) 401) Salary, Director of Public Prosecutions (Director of Public Prosecutions Act 1973) 415) 433) 451) 469) 479) Salary, Solicitor-General (Solicitor-General Act 1983) 410) 428) 446) 465) 475) 11 401) 13 698) 12 118) 12 315) 12 515)

Appropriation Carried Forward3 ....) 250) ....) ....) ....)

Total Revenue from Appropriation 132 743) 124 533) 122 553) 125 693) 138 607)

7.32 Justice Notes: 1. The decrease in Works and Services is due to the final loan payment for Stage C of the Prisons Infrastructure Redevelopment Program being made in 2008-09. The increase in 2010-11 reflects the commencement of Stage D of the Program. 2. The increase in Expenses of Parliamentary Elections and Referendums reflects the estimated timing of the House of Assembly election in 2009-10. 3. The increase in Appropriation Carried Forward reflects the carry forward of funds from 2008-09 to 2009-10 related to contractual commitments under the Regional Settlement and Investment Strategies.

Table 7.29: Income Statement – Administered 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000) Revenue Revenue from Appropriation 1 755) 1 755) 1 755) 1 755) 1 755) Fines and Regulatory Fees1 26 034) 24 534) 25 494) 26 504) 27 564) Sales of Goods and Services 7 134) 7 294) 7 456) 7 625) 7 797) 34 923) 33 583) 34 705) 35 884) 37 116)

Less Expenses Grants and Transfer Payments 1 755) 1 755) 1 755) 1 755) 1 755) Transfer to the Consolidated Fund1 27 168) 25 828) 26 950) 28 129) 29 361) 28 923) 27 583) 28 705) 29 884) 31 116)

Equals OPERATING RESULT 6 000) 6 000) 6 000) 6 000) 6 000)

Plus Other Movements in Equity Revaluations of Non-Financial Assets ....) ....) ....) ....) ....) Other Non-Owner Movements in Equity ....) ....) ....) ....) ....)

Equals COMPREHENSIVE INCOME 6 000) 6 000) 6 000) 6 000) 6 000)

Note: 1. The decrease in Fines and Regulatory Fees, and the Transfer to the Consolidated Fund reflects a more accurate estimate of these items based on current projections of the fines and fees collected through the Enforcement of Monetary Penalties.

Justice 7.33 Table 7.30: Administered Revenue 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Revenue Collected on Behalf of the Consolidated Fund Certificate of Competency Fees 152) 152) 152) 152) 152) Consumer Affairs Office Fees and Recoveries 3 472) 3 559) 3 648) 3 739) 3 832) Electrical Contractors and Technicians 395) 395) 395) 395) 395) Fines1 19 710) 18 210) 19 170) 20 180) 21 240) Magisterial Courts Fees and Recoveries 673) 690) 707) 725) 743) Other Sales of Services 331) 331) 329) 329) 329) Registrar-General Fees and Recoveries 1 657) 1 698) 1 740) 1 784) 1 829) Regulatory Fees 172) 172) 172) 172) 172) Supreme Court Fees and Recoveries 606) 621) 637) 653) 669) 27 168) 25 828) 26 950) 28 129) 29 361)

Revenue from Appropriation Annual Appropriation 1 755) 1 755) 1 755) 1 755) 1 755)

Other Revenue Fines 6 000) 6 000) 6 000) 6 000) 6 000)

Total Administered Revenue 34 923) 33 583) 34 705) 35 884) 37 116)

Note: 1. The decrease in Fines in 2009-10 reflects a more accurate estimate based on current projections of the fines and fees collected through the Enforcement of Monetary Penalties.

7.34 Justice Table 7.31: Administered Expenses 2008-09) 2009-10) 2010-11) 2011-12) 2012-13 ) ) ) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Grants and Subsidies Sullivans Cove Waterfront Authority 1 755) 1 755) 1 755) 1 755) 1 755)

Transfer to the Consolidated Fund 27 168) 25 828) 26 950) 28 129) 29 361)

Total Administered Expenses 28 923) 27 583) 28 705) 29 884) 31 116)

Sullivans Cove Waterfront Authority

In accordance with the Administrative Arrangements Order (No 4) 2008, the responsibility for the Sullivan's Cove Waterfront Authority was transferred from the Department of Infrastructure, Energy and Resources to the Department of Justice on 27 November 2008.

The Authority is the planning authority responsible for protecting, enhancing and developing Sullivans Cove and surrounding areas. The Authority aims to preserve the unique qualities of the Hobart waterfront, which help define the identity, vitality and image of the Tasmanian people.

Justice 7.35 Table 7.32: Balance Sheet as at 30 June 2009) 2010) 2011) 2012) 2013) ) ) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Assets Financial Assets Cash and Deposits1 9 060) 13 048) 12 749) 12 450) 12 151) Receivables2 3 636) 2 267) 2 417) 2 567) 2 717) Other Financial Assets 300) 300) 300) 300) 300) 12 996) 15 615) 15 466) 15 317) 15 168)

Non-Financial Assets Land and Buildings 98 955) 95 945) 92 629) 91 813) 101 497) Plant and Equipment 28 934) 28 373) 28 074) 27 775) 27 476) Intangibles3 2 713) 3 369) 3 019) 2 669) 2 319) Other Non-Financial Assets2 2 168) 436) 436) 436) 436) 132 770) 128 123) 124 158) 122 693) 131 728)

Total Assets 145 766) 143 738) 139 624) 138 010) 146 896)

Liabilities Employee Entitlements 15 790) 16 757) 17 209) 17 661) 18 113) Payables1 3 790) 4 392) 4 492) 4 592) 4 692) Other Liabilities 1 013) 987) 1 015) 1 053) 1 091) Total Liabilities 20 593) 22 136) 22 716) 23 306) 23 896)

Net Assets 125 173) 121 602) 116 908) 114 704) 123 000)

Equity Accumulated Funds 105 871) 102 300) 97 606) 95 402) 103 698) Asset Revaluation Reserve 19 302) 19 302) 19 302) 19 302) 19 302) Total Equity 125 173) 121 602) 116 908) 114 704) 123 000)

Notes: 1. The increase in Cash and Deposits, and Payables in 2010 more accurately reflects the balance of this item based on the Department's 2007-08 financial statements. 2. The decrease in Receivables and Other Non-Financial Assets in 2010 more accurately reflects the balance for this item based on the Department's 2007-08 financial statements. 3. The increase in Intangibles is mainly due to a reassessment of the useful life of the Fines and Infringement Notice Database (FIND) which has decreased the annual amortisation expense.

7.36 Justice Table 7.33: Balance Sheet as at 30 June – Administered 2009) 2010) 2011) 2012) 2013) ) ) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Assets Financial Assets Cash and Deposits1 2 179) 3 313) 3 313) 3 313) 3 313) Receivables2 34 697) 39 803) 45 803) 51 803) 57 803) 36 876) 43 116) 49 116) 55 116) 61 116)

Total Assets 36 876) 43 116) 49 116) 55 116) 61 116)

Liabilities Employee Entitlements1 282) 336) 336) 336) 336) Payables3 86) 65) 65) 65) 65) Other Liabilities 13) 19) 19) 19) 19) Total Liabilities 381) 420) 420) 420) 420)

Net Assets 36 495) 42 696) 48 696) 54 696) 60 696)

Equity Accumulated Funds 36 495) 42 696) 48 696) 54 696) 60 696) Total Equity 36 495) 42 696) 48 696) 54 696) 60 696)

Notes: 1. The increase in Cash and Deposits, and Employee Entitlements in 2010 more accurately reflects the balance of these items based on the Department's 2007-08 financial statements. 2. The increase in Receivables reflects the accrued portion of fines revenues being based on actual revenue recognised over the last four years. The Monetary Penalties Enforcement System has only been in operation for one year and medium to long-term trends for the recovery of debts cannot yet be established under this new collection system. The estimate will be revised in the 2010-11 Budget. 3. The decrease in Payables in 2010 more accurately reflects the balance for this item based on the Department's 2007-08 financial statements.

Justice 7.37 Table 7.34: Cash Flow Statement 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Cash Flows from Operating Activities Cash Received Appropriation1 121 342) 110 585) 110 435) 113 378) 126 092) Reserved by Law2 11 401) 13 698) 12 118) 12 315) 12 515) Fines and Regulatory Fees3 10) 2 382) 2 382) 2 382) 2 382) Interest Received 40) 80) 80) 80) 80) Grants4 3 271) 1 000) ....) ....) ....) Sales of Goods and Services5 6 359) 7 912) 7 981) 8 053) 8 053) GST Receipts 5 700) 5 700) 5 700) 5 700) 5 700) Other Receipts6 2 295) 8 902) 8 971) 9 043) 9 043) 150 418) 150 259) 147 667) 150 951) 163 865)

Cash Paid Employee Entitlements (70 956) (71 230) (70 238) (70 631) (72 334) Superannuation (6 900) (6 750) (6 807) (6 958) (7 131) Grants and Transfer Payments7 (6 038) (12 647) (11 916) (12 103) (12 494) Supplies and Consumables (29 374) (31 828) (30 032) (29 951) (29 971) GST Payments (5 700) (5 700) (5 700) (5 700) (5 700) Other Payments8 (18 638) (22 751) (22 773) (22 907) (23 034) (137 606) (150 906) (147 466) (148 250) (150 664)

Net Cash Flows from Operating Activities 12 812) (647) 201) 2 701) 13 201)

Cash Flows from Investing Activities Purchase of Fixed Assets9 (1 832) ....) (500) (3 000) (13 500) Net Cash Flows from Investing Activities (1 832) ....) (500) (3 000) (13 500)

Cash Flows from Financing Activities Net Borrowings9 (10 602) ....) ....) ....) ....) Net Cash Flows from Financing Activities (10 602) ....) ....) ....) ....)

Net Increase/(Decrease) in Cash Held 378) (647) (299) (299) (299)

Cash at the Beginning of the Year10 8 682) 13 695) 13 048) 12 749) 12 450) Cash at the End of the Year10 9 060) 13 048) 12 749) 12 450) 12 151)

Notes: 1. The decrease in Appropriation in 2009-10 largely reflects the completion of funding for the Prisons Infrastructure Redevelopment Program – Stage C ($11.4 million in 2008-09) and the completion of Hobart Supreme Court upgrade of holding cells ($874 000).

7.38 Justice 2. The increase in Reserved by Law reflects the Expenses of Parliamentary Elections and Referendums Reserved by Law item due to the estimated timing of the House of Assembly election in 2009-10. 3. The increase in Fines and Regulatory Fees reflects a more accurate estimate based on current projections of the revenue recovered from activities undertaken through the Building Administration Fund and the Building Practitioners Accreditation scheme. 4. The decrease in Grants is due to the transfer of Australian Government revenue from the Department to Finance-General from 2009-10. This reflects changes to the administration of Australian Government Funding from 2009-10 resulting from the Council of Australian Government's Intergovernmental Agreement on Federal Financial Relations. This decrease is partly offset by additional funding from the Special Capital Investment Funds for the Franklin Wharf Redevelopment. 5. The increase in Sales of Goods and Services reflects a more accurate estimate based on current projections of the revenue generated by prison industries and increased revenue estimates for the Crown Solicitor due to changes in cost recovery arrangements. 6. The increase in Other Receipts reflects a more accurate estimate based on current projections of costs recovered from undertaking local government and other elections by the Tasmanian Electoral Office, and costs recovered from the assessment of applications from private sector developers by the Resource Planning and Development Commission and activities undertaken by WorkCover Tasmania. 7. The increase in Grants and Transfer Payments reflects grant funding from the Australian Government for Legal Aid due to changes to the administration of Australian Government Funding from 2009-10 resulting from the Council of Australian Government's Intergovernmental Agreement on Federal Financial Relations. 8. The increase in Other Payments reflects a more accurate estimate based on current projections for expenditure of the Court Mandated Diversion Program and activities undertaken by WorkCover Tasmania. 9. The decrease in Purchase of Fixed Assets and Net Borrowings reflects the final loan payment for Stage C of the Prisons Infrastructure Redevelopment Program being made in 2008-09. The increase in Purchases of Fixed Assets from 2010-11 reflects the commencement of Stage D of the Prisons Infrastructure Redevelopment Program. 10. The increase in Cash in 2009-10 more accurately reflects the balance for this item based on the Department's 2007-08 Financial Statements.

Table 7.35: Cash Flow Statement – Administered 2008-09) 2009-10) 2010-11) 2011-12) 2012-13) Forward) Forward) Forward) Budget) Budget) Estimate) Estimate) Estimate) $'000) $'000) $'000) $'000) $'000)

Cash Flows from Operating Activities Cash Received Appropriation 1 755) 1 755) 1 755) 1 755) 1 755) Fines and Regulatory Fees1 20 034) 18 534) 19 494) 20 504) 21 564) Sales of Goods and Services 7 134) 7 294) 7 456) 7 625) 7 797) 28 923) 27 583) 28 705) 29 884) 31 116)

Cash Paid Grants and Transfer Payments (1 755) (1 755) (1 755) (1 755) (1 755) Transfers to the Consolidated Fund1 (27 168) (25 828) (26 950) (28 129) (29 361) (28 923) (27 583) (28 705) (29 884) (31 116)

Net Increase/(Decrease) In Cash Held ....) ....) ....) ....) ....)

Cash at the Beginning of the Year 2 179) 3 313) 3 313) 3 313) 3 313) Cash at the End of the Year 2 179) 3 313) 3 313) 3 313) 3 313)

Justice 7.39