03–04 Department of Infrastructure Annual Report I

03–04 Department of Infrastructure Annual Report i

Annual Report 2003–04

29 October 2004

The Hon. Peter Batchelor MP Minister for Transport and Minister for Major Projects The Hon. Theo Theophanous MLC Minister for Energy Industries and Resources The Hon. Marsha Thomson MLC Minister for Information and Communication Technology

80 Collins Street Melbourne 3000 www.doi.vic.gov.au

Dear Ministers Annual Report 2003–04 In accordance with the provisions of the Financial Management Act 1994, I have pleasure in submitting for presentation to Parliament the Department of Infrastructure Annual Report for the year ended 30 June 2004. Yours sincerely

Howard Ronaldson Secretary Department of Infrastructure ii

Published by Corporate Public Affairs Department of Infrastructure Level 29, 80 Collins Street, Melbourne

October 2004 Also published on www.doi.vic.gov.au

This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968

Authorised by the Victorian Government, 80 Collins Street, Melbourne

Printed by Finsbury Press, 46 Wirraway Drive, Port Melbourne, Victoria iii

Secretary’s Foreword

It has been a busy year for the Department of Infrastructure system. The Metropolitan Transport Plan is due for (DOI) portfolio. release in the near future Notable achievements for 2003–04 include: • a stronger emphasis on safety and security across the portfolio, particularly in rail • the establishment of stable commercial arrangements for the conduct of urban train and tram public transport • a significant strengthening of project management, services against a background of tight budgetary commercial and legal skills across the DOI portfolio, requirements embedded in public service positions • the establishment of stable commercial and managerial • the achievement of an improved package of funding arrangements for country rail services arrangements for transport projects under the new ‘AusLink’ banner – although the final distribution of • the resolution of many commercial, operational and monies earmarked for the Mitcham Frankston Project management issues with respect to the Freight Australia still needs to be resolved. leasehold Over the next 12 months or so, the following • the reintroduction of country passenger rail services projects/issues will be completed, or near completed: to Ararat and Bairnsdale • new hospital buildings for the Austin and • finalisation of the Federation Square project and Repatriation Medical Centre and Mercy Hospital transfer of responsibility to the Department of Innovation, Industry and Regional Development (DIIRD) • the Synchrotron building • State Library – Stage 4 completed, including the Dome • the Melbourne Sports and Aquatic Centre Stage 2 Reading Room and McCoy Hall • the Athletes’ Village for the Commonwealth Games • the National Gallery of Victoria works were completed • the Yarra Precinct pedestrian link and the gallery reopened to the public • the Vermont South tram extension • the agreement to establish a national regulator and rule maker to encompass the distribution and retailing • agreement on national or multi-state emissions schemes of gas and electricity – Victoria played a lead role • the implementation of a new public transport • the negotiation of landmark agreements on standard safety regulatory framework and safety-based energy retail prices for households and small businesses accreditation system. for the period 2004–07, providing for real reductions in In addition, contracts will be let for the construction electricity prices and stability in gas prices of the Southern and Eastern Integrated Transport Project • facilitation of the sale of Loy Yang Power (Mitcham Frankston), the Showgrounds Redevelopment, the Craigieburn Rail Project, many outer metropolitan road • the Victorian Office Telephony Services (VOTS) contracts improvements, the Yarra Arts Integration Project and the were executed, with significant savings achieved Melbourne Convention Centre Development. Subject to • the Rosetta contract has been let, with implementation Environmental Effects Statement (EES) findings, dredging well under way works will begin on the Channel Deepening Project. • the major Telecommunications Purchasing and A tender decision on the commissioning of a new Management Strategy (TPAMS) contracts have been ticketing system for public transport is scheduled let (at the time of writing), which will achieve better for the first quarter, 2005. value for money for telecommunications services for The Regional Fast Rail Project is a landmark project, all Victorian government agencies. presenting particular and unique risk management In addition to the abovementioned notable achievements, challenges to DOI. For example, there are a number I would like to separately mention four other achievements: of unavoidable risks associated with the Government significantly upgrading an asset that the private sector • the completion of a Metropolitan Transport Plan – controls. The age and condition of the existing track, arguably the first time a Victorian Government has and the prevalence of heritage structures, presents produced an integrated, strategic view, across all additional complexities. transport modes, of the key challenges facing the sustainability of an accessible and efficient transport Factors outside the true scope of the project also have an impact, including the evolving nature of safety iv

requirements, changing access regimes, and a pattern of growing patronage on the suburban network. Notwithstanding the many challenges noted above, significant progress has been made on this project, which should be viewed not only as a vast upgrade of physical infrastructure but also a vital driver of regional growth. The on-time completion of major track works on the Ballarat, Geelong and Latrobe Valley lines has already delivered more than 170 km of upgraded track infrastructure. Various track and bridge works have begun on the Bendigo line and construction is well advanced on two massive rail bridges on the Ballarat line, the largest of which measures 355 m long. In nominating the key challenges for the portfolio going forward, I would list: the establishment of a continuous improvement environment for public transport safety; the progression of a new ticketing system, including building public understanding and support for Smartcard technology; the driving of the Mitcham Frankston Project; continued delivery of track and signalling improvements, the new trains and V/Line timetable for the Regional Fast Rail Project; progress towards the introduction of rail passenger services to Mildura and Leongatha; the Channel Deepening Project; delivery of TPAMS objectives; the delivery of the Commonwealth Games infrastructure and transport services; facilitating the completion of Spencer Street Station; and DOI offering assistance in clarifying future greenhouse obligations as well as reaching agreement on a national or a multi-state emission trading scheme. I would like to thank all DOI officers and our portfolio colleagues for their hard work over the past year in supporting our Ministers and forging sound commercial links with the private sector.

Howard Ronaldson Secretary Department of Infrastructure v

Contents

Transmittal letter i Secretary’s foreword iii Vision, Mission, Values viii Infrastructure portfolios 1 Organisational Chart 3 DOI’s Management Committee 4 Chief Finance Officer’s Executive Analysis 8 Outcome 1. Public Safety and Security 9 Outcome 2. Infrastructure Delivery and Management 15 Outcome 3. Access and Mobility 21 Outcome 4. Connecting Victoria 28 Outcome 5. Rural and Regional Development 35 Outcome 6. Seamless Freight and Logistics System 39 Outcome 7. Secure and Sustainable Energy Supply 43 Outcome 8. Organisational Capability Building 47 Summary of Financial Results 50 Financial Statements 53 Appendixes 108 Output Performance Measures 108 Legislation 138 Budget and Portfolio outcomes 140 People profile 145 Statutory Authorities’ Executive numbers 146 Employee relations 147 Freedom of Information 148 Internal Audit Committee 148 National Competition Policy 148 Consultants 149 WOVG reporting – aboriginal/multicultural/women/youth 150 Whistleblower’s Protection Act 163 Other available information 163 Victorian Industry Participation Policy 163 Building Act Compliance 164 Publications 164 Environmental Performance Report 165 Disclosure Index 163 Statutory Authorities 169 Whistleblower policy 178 Contact information 187 vi

Abbreviations

AAV Aboriginal Affairs Victoria MPV Major Projects Victoria AEMC Australian Energy Market Commission MSV Marine Safety Victoria AER Australian Energy Regulator NECA National Electricity Code Administrator AR/M Austin Health Redevelopment and Mercy Hospital NEGA National Express Group Australia for Women Relocation Project NEM National Electricity Market ATO Australian Taxation Office NEMMCO National Electricity Market Management Company BIF Broadband Innovation Fund NICTA National Information and Communications Technology CALD culturally and linguistically diverse Institute of Australia CAN Customer Access Network NMSC National Marine Safety Committee CANDP Customer Access Network Demonstrations Program NTR Network Tariff Rebate CCTV closed-circuit television OCEI Office of the Chief Electrical Inspector CEO Chief Executive Officer OGS Office of Gas Safety DGS Director Gas Safety OH&S Occupational Health and Safety DIIRD Department of Industry, Innovation and OPE Office of Public Employment Regional Development OPR Operational performance regime DOI Department of Infrastructure PAMG Project and Asset Management Group DOJ Department of Justice POHC Port of Hastings Corporation DoTARS Department of Transport and Regional Services POMC Port of Melbourne Corporation DPC Department of Premier and Cabinet PRC Project Review Committee DPI Department of Primary Industries PTD Public Transport Division DSE Department of Sustainability and Environment R&D research and development DTF Department of Treasury and Finance RAS Royal Agricultural Society DVC Department for Victorian Communities RFP Requesting for Proposal ECEPP eCommerce Exhibition Projects Program RDV Regional Development Victoria ED Executive Director SCADA System Control and Data Acquisition EEO Equal Employment Opportunity SEAV Sustainable Energy Authority of Victoria EES Environment Effects Statement SEITA Southern and Eastern Integrated Transport Authority EMS Environmental Management System SET science, engineering and technology EOI Expressions of Interest SME small-to-medium enterprise ESC Essential Services Commission TCS Telecommunications Carriage Services ESD ecological sustainable development TPAMS Telecommunications Purchasing and FOI Freedom of Information Management Strategy FRC Full Retail Contestability TTA Transport Ticketing Authority FTE Full-time Equivalent TUOS Transmission Use of System GDP Gross Domestic Product UK United Kingdom GRS graduate recruitment scheme URLC Urban and Regional Land Corporation ICT Information and Communication Technology USA United States of America IFRS International Financial Reporting Standards VCA Victorian Channels Authority IRI International Roughness Index VCAT Victorian Civil and Administrative Tribunal IT Information Technology VENCorp Victorian Energy Networks Corporation KPI Key Performance Indicator VicPlan Victorian Pollution Contingency Plan LAN Local Area Network VicRoads Roads Corporation of Victoria LGA Local Government Area VicTrack Victorian Rail Track Corporation LPG liquid petroleum gas VicURBAN Victorian Urban Development Authority MAV Municipal Association of Victoria VIPP Victorian Industry Participation Policy MCE Ministerial Council on Energy VOTS Victoria Office Telephony Services MCLA Melbourne City Link Authority VPS Victorian Public Service MHW Mercy Hospital for Women VRCA Victorian Regional Channels Authority MIL Multilingual Information Line VRS Victorian Rail Services Pty Ltd MMA Melbourne Markets Authority WSB Walking School Bus MMV Multimedia Victoria YES Youth Employment Scheme vii

Department of Infrastructure DOI aims to be a leader in policy, planning, development and delivery of integrated infrastructure that contributes to sustainable environmental, economic and social development in Victoria. viii

Vision Values To be a department that delivers the Government’s The values, developed by our people, underpin Growing Victoria Together vision by providing innovative everything we do at DOI and highlight the and integrated strategic advice and project delivery commitment to professionalism. At DOI we value: consistent with a triple-bottom-line framework. Teamwork We acknowledge our shared goals. We openly Mission cooperate and communicate our knowledge and we share our expertise and information within our work The purpose of DOI is to lead, in collaboration with units and across DOI, individually and organisationally. stakeholders and the community, strategic planning, integration, development and management of transport, Diversity energy policy, information and communication We value our people’s diversity and respect and technology, major projects, freight and logistics and recognise each other’s diverse knowledge, skills the security of critical infrastructure. We will do this by: and capabilities. • linking the transport system of road, rail, air and sea channels to promote economic and social develop- Integrity ment through increased mobility and access, and We are ethical, accountable and transparent in our a more cost-effective freight and logistics sector dealings with colleagues, stakeholders and clients. • promoting efficient and integrated transport services across different modes while managing road and Commitment freight traffic growth, in order to address the needs We are committed to the provision of high-quality of the travelling public and industry services and are responsive to the changing demands • delivering the Government’s major transport of the community, government and other stakeholders infrastructure investments we serve. • providing strategic policy advice, analysis and support Innovation to government, our stakeholders and communities We support lifelong learning and flexibility, and in the areas of energy policy, information and encourage innovation to provide solutions and achieve communication technologies, and transport systems better outcomes. • delivering a wide range of other major projects on behalf of government departments and agencies. DOI Annual Report 2003–04 1

Infrastructure portfolios

The Hon. Peter Batchelor MP Major Projects portfolio Minister for Transport and Minister for The Major Projects portfolio plans, manages and Major Projects (Coordinating Minister) facilitates key infrastructure and land development and construction projects which enhance the economic and Transport portfolio cultural infrastructure of the State. Key major projects currently under way in Victoria include: Incorporating public transport and roads, the Transport portfolio covers: • State Library of Victoria refurbishment • road system development and maintenance • Commonwealth Games Athletes Village • transport policy and planning • Melbourne Sports and Aquatic Centre redevelopment (Stage 2) • rail and road freight and logistics • Australian Synchrotron • contract and lease arrangements for train, tram, route bus, school bus and ferry services and infrastructure • Melbourne Convention Centre development • regulation of taxi, hire car, accident towing and driving • Yarra Precinct Pedestrian Link instruction industries • Yarra Arts Integration Project • regulation of public transport and road safety • Former Fishmarket Site redevelopment • accessible transport services and facilities • West Gate Bridge Memorial Park • traffic system management • Bonegilla Migrant Reception Centre Heritage Park • driver licensing and vehicle registration • Austin and Repatriation Medical Centre redevelopment • management of the Government's City Link contract and Mercy Hospital for Women relocation project • management of large and complex transport • Royal Melbourne Showgrounds redevelopment infrastructure projects crucial to State development • Waste Management Facilities (for example, Mitcham Frankston Project, Spencer • Spencer Street Station redevelopment Street Station redevelopment) • development, planning and policy for Victoria's ports Statutory authorities • freight and logistics planning and infrastructure • Roads Corporation of Victoria (VicRoads) • marine safety and pollution response • Public Transport Ticketing Body (Transport Ticketing Authority) (TTA) • sea passenger infrastructure • V/Line Passenger Corporation (V/Line Passenger) • cruise shipping • Victorian Rail Track Corporation (VicTrack) • management of Port Phillip Bay shipping channels. • Spencer Street Station Authority • Victorian Urban Development Authority (VicUrban) • Port of Hastings Corporation (POHC) • Port of Melbourne Corporation (POMC) • Southern and Eastern Integrated Transport Authority (SEITA) • Victorian Regional Channels Authority (VRCA). 2 Infrastructure Portfolios

The Hon. Theo Theophanous MLC The Hon. Marsha Thomson MLC Minister for Energy Industries and Resources Minister for Information and Communication Technology Energy Industries portfolio The Energy portfolio is responsible for ensuring the delivery Information and Communication of secure, affordable and safe energy to Victorian Technology portfolio consumers and businesses, and ensuring that the supply The Information and Communication Technology (ICT) and use of energy is increasingly sustainable. DOI is portfolio includes responsibility for: continuing to develop energy markets and regulatory • developing strategies to grow the ICT sector in Victoria arrangements that deliver: • ICT industry investment attraction • competitive prices and service levels for households and businesses • improving ICT infrastructure and access • an effective safety net for consumers in the transition to • encouraging uptake of ICT by Victorian businesses competition • ensuring Victorians have the skills required by the ICT • timely investment in new energy supplies industry • increasingly reliable energy networks • providing Internet training and access to the Victorian community • safety in the production, transport and use of energy • whole-of-government purchasing arrangements • the more efficient use of energy for telecommunications services • lower greenhouse emissions from energy supply and use • using ICT to transform the way government delivers over time. its services. Statutory authorities • Office of Chief Electrical Inspector (OCEI) • Office of Gas Safety (OGS) • Victorian Energy Networks Corporation (VENCorp) • National Electricity Code Administrator (NECA) • National Electricity Market Management Company (NEMMCO).

Carlo Carli MP Parliamentary Secretary for Infrastructure

The Parliamentary Secretary for Infrastructure provides policy support to DOI Ministers in relation to: • taxi administration and reform • tow-truck regulation • bus reform • information technology • channel deepening project. DOI Annual Report 2003–04 3 MP Secretary Parliamentary Mr Carlo Carli for Infrastructure Regional Fast RailRegional Fast Tait Frank Capital Alf Smith Deputy Secretary – STATUTORY BODIES Major Projects Victoria James Cain Spencer Street Station Authority Victorian Urban Development Corporation (VicUrban) Project Development Group Project Management Group Project Property and Development Group Partnerships Victoria Group Projects Business Services STATUTORY BODIES Southern and Eastern Integrated Transport Authority Infrastructure Projects Gail Moody Country Passenger ServicesRail (Ararat and Bairnsdale) Craigieburn Project Rail Extension South Tram Vermont Dynon Port Link Rail Bypass Rail Wodonga Other Infrastructure Projects MP Batchelor Major Projects The Hon. Peter and Minister for Minister for Transport Graham Edkins Audit Committee CEO David Anderson Project Governance and Review Public Transport Safety Public Transport Roads Corporation of Victoria (VicRoads) ORGANISATIONAL CHART 2004 ORGANISATIONAL STATUTORY BODIES Ports and Marine and Logistics Freight Marine Safety Victoria Port of Melbourne Corporation Channels Victorian Regional Authority Port of Hastings Corporation Freight, Logistics Logistics Freight, and Marine John Rogan STATUTORY BODIES Public Transport Public Transport Harris Peter Commercial Policy Business Support Relationships Franchise Business Development Infrastructure and Asset Management and Taxi Rail Bus, Regional Information Systems and Analysis Corporation Track Victorian Rail (VicTrack) Public Transport Ticketing Body (Transport Ticketing Authority) VLine Passenger Planning Subcommittee DEPARTMENT OF INFRASTRUCTURE DEPARTMENT Corporate Resources Bob McDonald Budget Management and Financial Analysis Management Human Resource Corporate Public Affairs Contract Services and Risk Management Executive and Legal Services Corporate IT Services Corporate Systems and Financial Operations Property and Commercial Development Policy Subcommittee Policy (from May 2004) Planning and Policy Jim Stevenson John Robinson Integrated Planning Infrastructure Economics and Transport Policy Corporate Planning and Performance MANAGEMENT COMMITTEE SECRETARY Howard Ronaldson Capital Subcommittee MLC Thomson Technology The Hon. Marsha and Communication Minister for Information Multimedia Victoria Randall Straw ICT Investment and Business Development Access and Regional Policy Industry and Community Development Officer Chief Technology MLC Resources Theophanous Industries and The Hon. Theo Finance Subcommittee Minister for Energy STATUTORY BODIES Retail Markets Retail Wholesale Markets Legal and Legislation Supply Security Projects Policy Security and Emergency Management Co-ordination Energy and Security Richard Bolt Victorian Energy Networks Corporation National Electricity Market Management Company National Electricity Code Administrator Office of Gas Safety Office of the Chief Electrical Inspector 4 DOI Annual Report 2003–04

DOI’s Management Committee

Howard Ronaldson Richard Bolt Secretary Executive Director, Energy and Security Howard was appointed as the Secretary of DOI in December Richard Bolt has been the Victorian Government’s principal 2002. He brings vast experience in negotiating complex adviser on energy policy since 2001. His Division’s commercial arrangements between the private sector and responsibilities include the development of energy markets government and providing strategic policy advice. His early and longer-term energy policy, and coordinating security career included a senior position in a private company. risk and emergency management across the DOI portfolio, After joining the Victorian Government, he held executive in particular, for transport and energy. positions in DIIRD, Department of Premier and Cabinet Richard began professional life as an electrical engineer (DPC) and became the Director of Gaming, the Director with the State Electricity Commission of Victoria following of Crown Lands and the Director of Housing, and was the undergraduate traineeships with BHP and Mitsubishi in Chief Operating Officer of DOI from May until December South Australia. He later became a researcher and adviser 2002. Prior to this appointment, he was the Chief Executive to various Australian Democrat leaders in the Senate, and Under Treasurer of the Department of Treasury, ACT. covering at different times the portfolios of defence, Howard holds the following qualifications: B.Ec., Grad. foreign affairs, energy and resources, environment, Dip. Accounting and Finance, Monash University, and communications and industrial relations. an MBA from the University of Melbourne. Richard joined Victoria’s Office of the Regulator-General, now the Essential Services Commission (ESC), in 1995, Dr Alf Smith and had become Director of Electricity Regulation by the Deputy Secretary, Capital time he moved to his present role. While at the Office of Alf commenced as Acting Deputy Secretary – Capital in the Regulator-General, he established service standards December 2002, formally taking up the position in September and performance monitoring regimes, and managed the 2003. He has responsibility for all capital projects being development of cost benchmarks and service incentives that developed or under construction within DOI. This involves underpin distribution price controls. He also oversaw the overseeing and coordinating the development of new Commission’s contribution to the intro-duction of electricity projects, chairing DOI’s Project Review Committee, monitoring full retail competition, and developed and enforced its the progress of projects during delivery, and chairing the licensing and access regimes. Richard Bolt holds the Capital Subcommittee. Alf also has responsibility for following qualifications: B.Eng (Elec), MPPM. overseeing the development of SEITA (Mitcham Frankston Project). Alf has extensive experience working with DOI, James Cain having previously held the positions of Chief Executive Executive Director, Major Projects Victoria Officer of the Melbourne City Link Authority (MCLA) and Deputy Executive Director of the Franchise Review Taskforce. James was appointed to the position of Executive Director, Prior to his work on the City Link project, Alf spent 12 years Major Projects Victoria (MPV) in August 2001. MPV manages working in a range of policy areas in various government large and complex building/development projects crucial to departments, including DPC. Alf also has many years State development and nominated by the Premier. It also experience in teaching and research at the University of undertakes project concept development, implementation Melbourne, including economic modelling and forecasting. and delivery for the Victorian Government. Key projects in Alf holds the following qualifications: B.Com. (Hons), which MPV is currently involved include: University of Melbourne, Dip. Ed., University of Melbourne, • Royal Melbourne Showgrounds redevelopment M.A. (Econ.) (Hons.), University of Melbourne, and Ph.D., • Austin Health Redevelopment and Mercy Hospital University of Southampton. for Women Relocation Project (AR/M) • Commonwealth Games Village • Melbourne Convention Centre development • Australian Synchrotron Facility • Yarra Arts Precinct • Beacon Cove development DOI’s Management Committee DOI Annual Report 2003–04 5

• Melbourne Sports and Aquatic Centre Under Peter’s direction the PTD’s current challenges are to: • North West and Mildura Rail Corridor Study • develop and pursue policies and initiatives to encourage a substantial and sustained shift in transport usage in • Metropolitan Rail Network Study. Victoria from private cars to public transport Prior to his appointment to MPV, James worked in the • create and support the structure for the new public private sector for more than 10 years with Lend Lease transport ticketing system Corporation, in a range of roles. In 1998, he was appointed General Manager of Bovis Lend Lease for Victoria, South • protect the long term condition and integrity of the Australia and Tasmania. James has broad experience in the assets that make up the public transport system; and property, project design, and construction fields in a range • secure the best possible value for the Government’s of sectors including: government, commercial, retail, health funds allocated to public transport. and industrial. James holds the following qualifications: B.A. Building (Melbourne), MBA (Australian Graduate Peter brings a wealth of experience to the position from the School of Management). public and private sector, having held senior management and advisory positions in interstate rail and road transport; airports and aviation. He has played an important role in the Dr Graham Edkins microeconomic reforms delivered in the communications, Director, Public Transport Safety waterfront and land transport sectors. Peter was also a Graham was appointed to the position of Director, Public member of the Prime Minister’s personal staff between Transport Safety in May 2003 and has overall responsibility 1989 and 1991 where he held the position of Senior Private for the safety accreditation and regulation of rail, tram and Secretary to the Prime Minister. Peter holds a Bachelor of bus services within the State of Victoria. In addition, his Economics degree from the University of Queensland. role provides specialist independent safety advice to the Secretary of DOI and Minister for Transport. Graham leads Bob McDonald the Public Transport Safety Group in implementing a more Executive Director, Corporate Resources contemporary approach to transport safety regulation in Victoria and adding value to national policy matters on rail Bob has held the position of Executive Director Corporate safety regulation. Resources since December 2002. The Corporate Resources Division brings together all of the major corporate services Graham has extensive experience in safety management functions of the department. and accident investigation within both the aviation and rail industries with previous roles with Qantas Airways, the Bob’s key areas of responsibility include human resources, Bureau of Air Safety Investigation and within the rail industry. communications and public affairs, contract services and He has provided expert advice to safety regulators, public risk management, information technology services, executive inquiries and private-sector organisations in regard to safety and legal services, financial management and analysis, management and human factors and has numerous inter- corporate systems and processes, including DOI’s web national publications based on his work. His qualifications environments, knowledge and information management include a B.Sc., a Masters Degree in Organisational and DOI’s property management responsibilities. Psychology (M.Psych) from Curtin University and a PhD Before being appointed to his present role, Bob held the from the University of Otago, applied in the area of position of Chief Finance Officer from April 1997. Bob is a transport safety management. graduate of Monash University with a Bachelor of Economics degree, and is a Fellow of the Australian Society of Certified Peter Harris1 Practising Accountants. Director, Public Transport Peter was appointed Director of Public Transport in November 2002 and leads the Public Transport Division (PTD) which is the Government appointed custodian of Victoria’s public transport system. On behalf of the State and the community, Peter and his team are responsible for the efficient management of contracts for the provision of safe, reliable and effective public transport services throughout Victoria.

1 Peter Harris left DOI on 6 August, 2004 to take up the role of Secretary, DPI. 6 DOI Annual Report 2003–04

Gail Moody John Rogan Executive Director, Infrastructure Projects Division Executive Director, Freight, Logistics and Marine Gail has been the Executive Director of the Infrastructure John took up the position of Executive Director in September Projects Division since September 2001. This Division was 2003. John has held senior executive roles in the public established to ensure the effective delivery of all priority sector for 16 years, in a range of departments including infrastructure projects, and has responsibility for Country Rail Treasury, Attorney-General’s, Planning and Development, Passenger Services, Craigieburn Rail Electrification, Vermont Arts, Sport and Tourism, and Infrastructure in Victoria, South Tram Extension, Wodonga Rail Bypass and Rail and Transport in New South Wales. Gauge Standardisation. Gail also chairs the Project Review Over the past 12 months, the Freight, Logistics and Marine Committee Stages 2 and 3 that reviews the robustness Division has been refocused to achieve the key government of project development prior to budget application. and departmental outcome of delivering competitive freight Prior to joining DOI, Gail held senior positions in the public and logistics system for Victoria. Freight and logistics is the transport area where she was responsible for the delivery of State's second largest industry sector and accounts for around major projects. Gail holds a Bachelor of Civil Engineering 13 per cent of Victoria's Gross State Product. The Division degree and Master of Engineering Science (Transport is responsible for developing strategies and implementing Planning) degree and is a Fellow of IE Aust. policies and projects for Victoria’s freight, logistics, ports and maritime sectors, and for the effective management John Robinson2 of marine safety. Acting Executive Director, Planning and Policy John holds degrees in Arts, Law (Hons) and Commerce John has been acting in the position of Executive Director from the University of Melbourne, and a Masters degree Planning and Policy since May 2004. This Division is in Public Administration from Harvard University. responsible for integrated strategic planning and policy for infrastructure and transport services. In addition to Randall Straw its specific operational responsibilities, the Division has Executive Director, Multimedia Victoria a central role in facilitating interagency cooperation in Randall was appointed Executive Director, Multimedia strategic planning and maintains close links with a range Victoria (MMV) in June 2001. Following machinery-of- of agencies including VicRoads. government changes in December 2002, MMV moved Priorities that the Planning and Policy Division currently from DIIRD to DOI. On behalf of MMV, Randall is responsible oversees include: for implementing the Government’s information and communication technology policy Connecting Victoria, which • the portfolio’s contributions to the Government’s aims to bring the benefits of technology to all Victorians. Melbourne 2030 strategy MMV's core responsibilities include: • confirmation of the portfolio’s major infrastructure investment priorities • growing the ICT industry in Victoria • links with the Commonwealth and local government • attracting new ICT investments to Victoria • the conduct of regional integrated plans, including • working with education and training providers modelling/forecasting of future demands and and industry to build the State's ICT skills base infrastructure priorities • increasing community uptake of the Internet • the development of performance measures for the • promoting the uptake of eCommerce by Victorian portfolio’s programs and services and evaluation of companies policy options. • establishing a regulatory framework that provides John has held senior policy roles in government for several certainty and confidence for the use of new technologies years. Previous positions include: Executive Director, Energy, Department of Natural Resources and Environment; General • negotiating whole-of-government purchasing for Manager, Microeconomic Reform and Infrastructure, SA telecommunications services Treasury; and Director, Energy Policy, Victorian Treasury. John • delivering strategic whole-of government ICT projects. holds qualifications in economics, B.Ec. (Hons) and M.Ec.

2 Jim Stevenson was Executive Director, Planning and Policy until 30 April 2004 DOI’s Management Committee DOI Annual Report 2003–04 7

Prior to June 2001, Randall was the Director of Government Online and Community Development in MMV and oversaw Victoria’s Government Online and digital divide strategies and programs. He has more than 25 years experience in the Victorian public sector, principally in systems and information management planning roles. He has worked in the portfolios of Public Works, Education, Attorney-General’s, Treasury and Finance, DPC, and State and Regional Development.

Frank Tait Executive Director, Regional Fast Rail Project Frank Tait assumed the position of Executive Director – Regional Fast Rail in November 2003. He is responsible for delivering the infrastructure component of the project, comprising four design and construct contracts that combined, will modernise 500 km of regional railway and install a fully automatic signalling system. Frank has extensive experience in the rail freight industry and has managed large and complex organisations. He managed V/Line’s freight business and all diesel rail operations within the State and, as General Manager Intermodal at the National Rail Corporation, created a new national container freight company involving real-time technologies and new train operations. He was also Chief Executive Officer of the City of Stonnington, where he restructured the financial and operating performance of the council and implemented a cultural change program. Frank's undergraduate qualification is in Aeronautical Engineering from RMIT. He also completed his MBA at RMIT. 8 DOI Annual Report 2003–04

Chief Finance Officer’s Executive Analysis

n 2003–04, there have been significant changes in After experiencing these ‘one-off’-type transactions in the the operating landscape for public transport with the past two years, we have enhanced the various Notes to the cessation of the receivership of National Express (NX), 2003–04 Statements so that readers can see the underlying I the appointment of one train (Connex) and one tram trends in DOI’s activity separate from these large movements. (Yarra) operator with subsequent changes to the ownership Further detail on movements between 2002–03 and 2003–04 and reporting of metropolitan rolling stock (trains and trams), and a six-year summary table is provided in the section and V/Line Passenger rail services reverting to government ‘Summary of Financial Results’ to improve clarity. control. Also during the year, responsibility for the In the 2002–03 annual report, reference was made to management of the City Link contract was transferred the recognition of the State’s right (on an emerging basis) to VicRoads. to receive the City Link assets at the end of the concession DOI’s operating deficit of $346 million largely reflects a term in this reporting period. This issue is yet to be addressed number of transactions emanating from the implementation by the accounting profession and the State recognition has of these new public transport contracts and the termination again been deferred. of the previous franchise arrangements. Looking forward to 2004–05, there are potential changes The State recognised a significant liability to meet the in accounting policy that may impact on DOI’s and its employee entitlements of the franchisees and also made agencies’ financial results, including the introduction additional payments to the Receivers of the former NX of International Financial Reporting Standards (IFRS) to businesses. The majority of these additional payments had Australia, particularly the valuation of non-current physical been funded by a payment in the previous financial year assets and asset impairment, a further review of rolling- from NX in lieu of their performance bond. DOI’s ‘rail stock arrangements, and City Link recognition. services’ expenditure in the Statement of Financial The Statement of Financial Performance includes revenue Performance increased markedly from last year to reflect received by DOI as payment of outputs delivered in these impacts and greater detail is shown against Note 7 accordance with agreed output targets. DOI has: to the Statements. • delivered most of its agreed targets The State also re-acquired the majority of the existing rolling stock as part of the new Public Transport partnership • managed throughout the year within its available arrangements that started on 18 April 2004. The rolling resources limits. stock was acquired for a nominal amount and revalued The Financial Statements presented later in this report to ‘fair value’ in accordance with accounting standards, are prepared in accordance with applicable accounting and as responsibility for the reporting of the State’s rail standards and the Financial Management Act 1994. infrastructure and rolling stock lies with VicTrack, these assets were immediately transferred to VicTrack. This transaction appears in the Statement of Financial Performance within ‘Other revenue and revenue from other parties’ while the transfer to VicTrack is shown as ‘Assets transferred to other agencies free of charge’. Further detail is shown at Note 8 to the Statements and within VicTrack’s 2003–04 annual report. 9

1Outcome 1 Public Safety and Security 10 DOI Annual Report 2003–04

Outcome 1 Public Safety and Security

he safety of the Victorian public is paramount, while Key achievements the security of the State’s infrastructure is critical to the health of the Victorian economy. arrive alive! implementation and T DOI and its affiliated agencies aim to: the Victorian road toll • improve safety on Victoria’s roads and public transport During 2003–04, implementation of the arrive alive! • enhance marine safety 2002–2007 Victoria’s Road Safety Strategy continued to result in reductions to the State’s road toll. The strategy • continue to build on Victoria’s already impressive energy aims to reduce the number of deaths and serious injuries safety record on Victorian roads by 20 per cent by 2007 and is being • effectively manage the security risks in relation to critical implemented by VicRoads, Victoria Police, the Transport infrastructure. Accident Commission and the Department of Justice (DOJ). A range of strategies and actions have been implemented It addresses key road safety challenges including speed, throughout 2003–04 to achieve these aims. Of particular drink-driving and roadside safety. importance is the Government’s arrive alive! 2002–2007: Activities in 2003–04 included: Victoria’s Road Safety Strategy, which aims to reduce • introducing reduced speed zones near all Victorian annual death and serious injury arising from crashes on primary and secondary schools Victoria’s roads by 20 per cent by 2007. • introducing reduced speed limits (50 km/h) in a further DOI initiatives to support the Public Safety outcome also 22 rural townships and outer metropolitan areas further enhance the Government’s Growing Victoria Together commitments to safe streets, homes and • the continuation of targeted road treatments under workplaces, growing and linking all of Victoria, building the Accident Blackspot Program, which is now fully cohesive communities and reducing inequalities, as well allocated. More than 1,100 accident blackspots have as protecting the environment for future generations. been treated since the program began in 2000 Outlined below are some of the highlights of initiatives • becoming the first State in Australia to introduce developed and implemented in 2003–04. legislation to allow random roadside drug testing for drivers Further details relating to specific projects can be found at www.doi.vic.gov.au/publictransportsafety • improving road safety for motorcyclists by treating or www.marinesafety.vic.gov.au 56 locations with a high incidence of crashes. In 2003, there were 330 fatalities on Victorian roads – the lowest level since records began in 1951, and 67 fewer than for the previous year. At the end of 2003, country Victoria had a 10 per cent reduction in fatalities, reversing the previous upward trend. For further information see www.arrivealive.vic.gov.au

Rail system safety The Government is committed to providing the highest standards of safety in rail services. During 2003–04, the Public Transport Safety group facilitated proactive initiatives for higher industry safety standards and performance, including the modernisation of the Victorian rail network rule book – an industry code which contains the operating rules and safe-working procedures for train operations on the suburban, regional and interstate networks. The new code is aligned with national codes of practice and risk management principles, making it current, effective and consistent with best practice. The Code of Practice for Health Assessment of Rail Safety Workers was implemented, providing practical guidance Public Safety and Security DOI Annual Report 2003–04 11

to achieve a rigorous approach to monitoring the health and fitness of rail safety workers. The need for critical safety improvements following recent rail incidents both in Victoria and interstate was assessed and funding was secured in the 2004–05 Budget to implement a set of actions. These actions included the: • installation of new data loggers on the suburban passenger fleet • installation of enhanced deadman devices (including vigilance controls) on the suburban train fleets • modification of signalling systems to include greater train separation on single-line tracks. During 2003–04, a significant number of reforms to rail operations have been implemented to reduce the risk of rail incidents. These reforms addressed a wide range of issues, from the improvement of education and awareness programs for staff to the upgrading of driver communications, and from the first to the last train each day and have improved from further development of driver skills and competencies passenger facilities such as enclosed waiting areas. to enhanced maintenance practices. To enhance safety and security and improve revenue The Australian Transport Safety Bureau is currently protection, 31 additional stations are progressively being investigating recent rail safety incidents and these staffed in the morning peak from 7.00–9.00 am as part recommendations will be reviewed and implemented of the new public transport partnership with Connex. Also, where appropriate. 22 additional stations will be staffed each afternoon on a rotating basis, taking into account customer feedback, Customer service staff on trains and trams needs and patronage levels. The 100 customer service staff who travel on after-dark suburban trains have been retained as part of the new Safe Travel Taskforce partnership agreement with Connex. The Safe Travel Taskforce (established in 2000 to provide The success of this program has led to an additional advice to the Minister) continues to review safety issues, 100 front-line customer service staff being progressively identify strategies to improve the safety and security of introduced on the train network. From early 2005, additional public transport users and coordinate the implementation customer service staff will travel on metropolitan trains from of these strategies across the transport system. 9.00 pm through to the last train to ensure greater passenger Following a graffiti audit undertaken by the taskforce in safety and confidence in travelling on trains at night. 2002–03, the taskforce is reviewing a strategy for graffiti As part of the new partnership agreement with Yarra Trams, removal and will be making recommendations for the the 100 customer service staff who travel on the tram implementation of a trial. Graffiti management is part network are being retained to provide customer assistance of the System Upkeep Plans in the new partnership and offer improved safety for passengers. This program has agreements with Connex and Yarra Trams. also proved successful, leading to a further 50 customer service staff being progressively introduced by late 2004. Safety at railway level crossings Customer service staff will also be introduced on tram In 2003–4 the level of protection at nine level crossings services at night through to the last tram to further was upgraded (for example, from signs and markings to improve passenger safety. flashing lights ) as part of the Victorian Level Crossing Improvement Program that focuses on road–rail crossings. Railway station improvements and staffing Work has begun on a further 22 crossing upgrades, while another 40 upgrades have been approved. Melbourne now has 67 Premium Stations providing increased safety and comfort for passengers. In addition Under the Pedestrian Crossing Protection Upgrade Program to closed-circuit television (CCTV) cameras on platforms that focuses on stand-alone pedestrian rail crossings, three and at car-park entrances, Premium Stations are staffed crossing upgrades have been completed at Ringwood, 12 DOI Annual Report 2003–04

Tooronga and Glen Waverley. Work is under way on another providers – including the Port of Melbourne (and Station 19 upgrades. A further eight are at pre-tender stage. Pier) and Geelong, Portland, Hastings and Gippsland Ports (Port Welshpool) – were approved by the Commonwealth Twenty-one recommendations from the 2002 Wheelchair Department of Transport and Regional Services (DoTARS) Safety at Railway Level Crossings Taskforce have been before the international deadline of 1 July 2004. implemented. The four outstanding recommendations, which were awaiting the 2 April 2004 coronial findings from two Boating Safety and Facilities Program 2001 fatal wheelchair accidents, are now being implemented. In 2003–04, the Government committed $4.38 million to The development of new disability access pedestrian crossing improving boating safety in Victoria through the Boating design and maintenance standards, as recommended by the Safety and Facilities Program. This program is a consolidation Taskforce, is well advanced. Following further consultation of the former Boating Safety Funding Program and the with the disability community, they will be incorporated Boating Facilities Program and allows for revenue from both into prototype crossings for pilot testing. licensing and vessel registration fees to be reinvested back These standards will also be submitted as new Australian into the community. Standards and will be adopted by Connex, which is required The program assists with funding to boost boating safety to upgrade 32 crossings a year to the new standards as education and training, the purchase of search-and-rescue part of the new partnership agreement. vessels and equipment, navigation aids and boating safety Rural School Bus Safety Program signage, and the upgrade and construction of boat ramps and jetties. The five-year $10 million Rural School Bus Safety Program Sixty-six fishing and community groups, waterway authorities, was completed as scheduled in June 2004. Dedicated government agencies and search-and-rescue organisations to improving safety, comfort and convenience at bus across the State received funding for nearly 100 projects. interchanges for primary and secondary school students in regional Victoria, the program included: Boosting the State’s search-and-rescue capability has been a major focus of the program, with funding allocated for • construction of bus shelters and covered walkways new search-and-rescue vessels for local groups in Portland, • road improvement works to increase bus safety Warrnambool and Inverloch. • upgrades to 123 school bus interchanges and more The Community Harbours category was developed to enable than 600 school bus stops. boating and other community groups and local waterway managers to seek funding to develop or improve public Security cameras in taxis boating facilities. During 2002, security cameras were installed in 3,667 taxis operating in the metropolitan Melbourne and Geelong taxi Statewide initiatives funded from the Boating service areas. Since then, cameras have also been installed in Safety and Facilities Program the Shepparton taxi fleet (comprising 21 taxis) and a strategy ‘Life Jackets Save Lives’ public education campaign to install taxi cameras in other regional areas is under development. Over the 2003–04 summer period, a media campaign entitled ‘Life Jackets Save Lives’ focused on the key times Victoria Police has welcomed the use of security cameras when boaters should wear a personal flotation device (PFD). in taxis, which have assisted in the arrest of offenders in a number of cases. The campaign was developed as a result of a three-year period between 1999 and 2002 where 40 boating fatalities Port security occurred in Victoria. Of these 40 fatalities, 32 deaths involved people not wearing PFDs. As a result of acts of terrorism in the USA on 11 September 2001, the International Maritime Organisation approved Boat safety equipment audit program new preventative anti-terrorist security measures that apply An audit of safety equipment of 1,500 recreational boat to international ships and the port facilities servicing those owners was conducted over the summer period. ships. Australia is bound by its international obligations to adopt the new measures, outlined in the International Ship Participants received a report on the adequacy of their and Port Facility Security Code. safety equipment and whether it was readily available in an emergency situation. Although the majority of Key features of the new security measures are the boats were carrying the required safety equipment, some development and implementation of Ship Security Plans equipment was in poor condition, stowed inappropriately and Port Facility Security Plans. Maritime security plans or not readily accessible. required for Victorian ports, port facilities and port service Public Safety and Security DOI Annual Report 2003–04 13

Audit of navigational aids and boating MSV received 92 reports of marine pollution incidents safety signage during the year, all of which were managed in accordance with VicPlan. A comprehensive audit of all marine navigational aids and boating safety signs across Victoria was completed. Marine incident investigations The audit identified the key navigational aids and signage to be repaired or replaced. Under the Marine Act 1988, MSV must investigate marine incidents and take appropriate action to address deficiencies Personal flotation device review in operational procedures, vessel standards or crew training. In response to recommendations by the Victorian State In 2003–04, five commercial incidents and eight recreational Coroner, Marine Safety Victoria (MSV) conducted a review incidents were investigated. of the use of PFDs by recreational boaters in Victoria. Recreational boating fatalities A range of different options regarding their use was released for public comment in March 2004 and more than In 2003–04, there were 11 recreational boating fatalities 3,000 responses were received. arising from 10 incidents that occurred on Victoria’s waterways. MSV has established that, in many instances, Recommendations arising from the review will be made to deaths have resulted from a combination of three factors: the Minister for Transport for his consideration during the second half of 2004. • hazardous environmental conditions • vessel occupants suddenly and unexpectedly entering Vessel survey achievements the water All domestic commercial vessels are now surveyed annually, • absence of PFD use. improving public and workplace safety in the commercial marine environment. There were 1,852 commercial vessels Marine Amendment Act in survey as of 30 June 2004. The Marine (Amendment) Act 2004 was enacted through In addition, random audits were conducted on 15 per cent Parliament and primarily relates to the amendment of the of the fleet to ensure vessel owners were complying with Marine Act 1988 and the Port Services Act 1995. It includes safety standards while operating and to identify any government objectives for improving public safety in the patterns of deficiency. marine environment.

National Marine Safety Committee The Act: MSV continued to actively participate in the National • clarifies the role and function of harbourmasters Marine Safety Committee (NMSC) to improve marine safety • makes provision for harbourmaster directions in in line with the National Marine Safety Strategy. regulations During the year, the Australian Transport Council endorsed • changes the name of local authorities the following standards: – to waterway manager for authorities of State waters 1. National Standard for Commercial Vessels Part C – to port manager for local ports Section 7A – Safety Equipment – to port management body for the major ports 2. National Standard for Recreational Vessel Safety Equipment. • clarifies the role of waterway managers • provides powers for police and MSV inspectors to Marine oil pollution response conduct random safety compliance inspections of vessels MSV manages the Victorian Pollution Contingency Plan • makes provision for the Australian Builders Plate (VicPlan), which outlines measures that must be taken by requirements to be included in the Marine Regulations. participating agencies in the event of a marine pollution incident in Victorian waters. An oil spill at Swanson Dock in February 2004 was the only significant spill that required a coordinated response from MSV. 14 DOI Annual Report 2003–04

Protecting critical infrastructure DOI completed a major review of security risk management in the energy sector and began consultation with energy companies on their response to the review findings. The review considered the electricity, gas and liquid fuel industries. It identified credible threats to Victoria’s energy infrastructure and its ability to maintain supply, taking into account significant interdependencies between energy supply and other sectors of the economy. The review identified Victoria’s critical energy infrastructure and examined the security risk management practices of owners and operators of this infrastructure. It benchmarked performance against international best practice and made recommendations about how security systems and risk management plans could be improved. DOI completed an initial strategic assessment of transport security risks and scoped a full review of security risk- management practices in the land transport industry. DOI plans to commission a full review of security risk management in Victoria's transport industries. The review will identify priorities, establish benchmark security practices and assess operators against those benchmarks, with a particular focus on interdependencies between operators, and with other sectors. As noted above, DOI helped facilitate the compliance of Victorian ports with the Commonwealth’s Maritime Safety Act. All Victorian ports and marine facilities subject to the Maritime Transport Security Act were able to put approved security plans into effect from 1 July 2004.

The safety of the Victorian public is paramount, while the security of the State’s infrastructure is critical to the health of the Victorian economy. 15

Outcome 2 2 Infrastructure Delivery and Management 16 DOI Annual Report 2003–04

Outcome 2 Infrastructure Delivery and Management

OI and its agencies manage transport and other VicRoads makes a substantial contribution to the infrastructure projects with a combined total Infrastructure Delivery and Management outcome group estimated investment of almost $17 billion, through the delivery of road projects and the management D including projects worth $10 billion in collaboration of Victoria’s road network. Key achievements for VicRoads with other government agencies. A priority for DOI is to are summarised in the section on Statutory Authorities in deliver these projects on time, on budget and within the this report. agreed scope and quality. The Victorian Government’s focus is on economic and Key achievements social infrastructure. DOI is committed to building strategic infrastructure that can attract and deliver economic State Library of Victoria and social development and investment through its The State Library of Victoria is one of the world's 1,000 most Infrastructure Delivery and Management outcome and significant buildings of the twentieth century. The staged the Major Projects portfolio. restoration program balances the need for preserving the The Major Projects portfolio is currently in the process of heritage building with developing the facility for future managing approximately $12 billion worth of public and generations. Managed by MPV, this project is funded by private investment across more than 40 projects as part Arts Victoria. of the Government's Building One Victoria program. The fully renovated Domed Reading Room was handed MPV manages and facilitates key strategic development back to the State Library in May 2003 and opened to the and construction projects that enhance the economic and public in July 2003. McCoy Hall, McArthur Gallery and La cultural infrastructure of the State. MPV provides advice on Trobe Gallery opened to the public in December 2003. Work property development and construction-related issues to the on contract documentation for Stage 6 continued through Minister for Major Projects and agencies across government. the year and tenders will be called in September 2004. Consultancy advice and project management are also For further information, see www.slv.vic.gov.au provided to other areas of the Victorian Government on a cost-recovery basis. Docklands Studios Under the Government’s Partnerships Victoria policy, DOI DIIRD is MPV’s client agency for this project. MPV was looks to the private sector for the provision of infrastructure responsible for overseeing the studio project’s site where it will deliver value for money and better outcomes development and construction activities. The project is being than traditional public-sector investment. Part of any public delivered in accordance with Partnerships Victoria guidelines private partnership is the effective management of risk by by the developer, Central City Studios, and is expected to government. Management of Partnerships Victoria projects generate an extra $100 million in film production annually. requires DOI to identify and profile risks and allocate these Construction of the core studio development began in risks appropriately as part of the contract arrangements. November 2002 and was completed in March 2004. DOI is enhancing its project planning and management skills in order to ensure the best outcomes for the State. National Gallery of Victoria Redevelopment DOI’s infrastructure delivery and management initiatives The National Gallery on St Kilda Road reopened to the contribute to the Government’s Growing Victoria Together public on 4 December 2003, on time and on budget, priorities. In particular, contributions are made to sound and immediately attracted record visitation when the first financial management; creating more jobs and thriving, touring exhibition, the Caravaggio exhibition, was held innovative industries across Victoria; building cohesive in the newly refurbished building. communities; and reducing inequalities. The project was delivered within its budget of $162 million Key achievements in the Infrastructure Delivery and and now provides accommodation for one of the most Management outcome group, including the Major Projects extensive visual art collections in Australia. Exhibition space portfolio, in 2003–04 are outlined below. Further details has been increased by 25 per cent; orientation and circulation relating to MPV projects can be found at the MPV web within the building has been improved; education and site www.majorprojects.vic.gov.au, and at the web site visitor facilities have been enhanced, as have conservation addresses listed beside specific projects. and curatorial facilities; new state-of-the-art environmental controls and exhibition lighting has been provided; and all of the building’s catering facilities have been upgraded. Infrastructure Delivery and Management DOI Annual Report 2003–04 17

Austin Health Redevelopment and Mercy Hospital for Women Relocation Project Victoria's largest joint hospital development, the AR/M is one of the State’s most significant major projects currently under way. It will transform the current Austin Health facilities and relocate the Mercy Hospital for Women from East Melbourne to the Heidelberg site, providing public specialist and general obstetric and gynaecology services to Melbourne's north-east. Construction work has continued throughout 2003–04 and a cashflow of approximately $107 million was achieved for the financial year. The overall strategy for completion of the project, including Hospital Commissioning, is Construction works started in July 2003. The synchrotron Minister for Major that construction will be progressively completed in late building is being constructed by Thiess Pty Ltd and is Projects, Peter Batchelor 2004/early 2005 and Hospital Operational Commissioning progressing well. It is anticipated that the building will with construction workers will occur progressively from early to mid-2005. A program be finished in February 2005. from the AR/M project, who raised $100,000 of refurbishment works to existing buildings will follow The procurement program for the accelerator systems, for charity. the occupation of the new Austin and Mercy towers. subsystems and components which produce the synchrotron The refurbishment, and hence full project completion, light is well advanced to enable the scheduled start of is expected in 2006. installation by April 2005. Orders have been placed for the The co-located hospitals will provide more than 500 adult specialised systems with a number of proven international beds, a new emergency department and intensive care and suppliers who have also teamed with local companies to critical care units. Additional operating theatres, expanded participate in the installation stage and the longer-term day-procedure facilities, and redeveloped acute inpatient through life support of the facility. Some of the international mental health services will also be provided. In addition, suppliers include: there will be maternity delivery rooms, neo-natal intensive- • Danfysik (Denmark), Injection System care unit cots, outpatient suites and specialty women's • CMS Alphatech & Buckley Systems (NZ), Storage health services. Ring Magnets Australian Synchrotron Project • FMB Feinwerk (Germany), Storage Ring Vacuum Chambers The Australian Synchrotron is a large machine which • Toshiba International Corp. (Australia), Storage Ring Radio electro-magnetically accelerates electrons to create intense Frequency System. beams of laser-like light for use by scientists and researchers The beam line program has also begun with the first of at experiment stations within the synchrotron building. the beam lines now under initial design and development. Australia’s first synchrotron is being built at Clayton following The installation and pre-operational testing stage of the the Victorian Government’s initiative to construct the facility synchrotron will run from 2005 into early 2006, followed as an important national and international tool for academic by commissioning throughout the remainder of 2006 and and industrial research into almost all areas of science early 2007. The facility is scheduled to be handed over to including: the operator at the end of March 2007, with the initial • drug and vaccine design beam lines operational. The synchrotron will be delivered in accordance with performance criteria that have been • medical imaging pre-agreed with the scientific user community. • computer chip manufacture The facility is expected to create 2,500 direct and indirect • minerals and materials analysis jobs and add $65 million a year to the Victorian economy, • environmental science and improved remediation as well as further enhancing Victoria’s reputation as a techniques. centre for national and international scientific research. For further information, see www.synchrotron.vic.gov.au 18 DOI Annual Report 2003–04

Showgrounds redevelopment The Royal Melbourne Showgrounds are being redeveloped over a three-year period in a unique joint venture arrangement between the State and the Royal Agricultural Society of Victoria (RAS). Approval to proceed with the Partnerships Victoria approach was obtained in May 2003, and the project is expected to be finished by the 2006 Royal Melbourne Show. Key achievements in 2003–04 were: • establishment of project joint venture • completion of site master-planning and Public Sector Comparator model • completion and release of Expressions of Interest (EOI) • short-listing of Requesting for Proposal (RFP) Proponents and release of RFP.

Beacon Cove Stage 2 This 30-hectare former industrial site on the waterfront at Port Melbourne was redeveloped by the State Government, in partnership with Australian developer, the Mirvac Group. More than 900 houses and apartments have been built, bringing thousands of new residents to the area. The residential area is complemented by a boat harbour, retail and tourism precinct, and a waterfront pedestrian promenade between Station and Princes Piers. Mirvac has now started construction and marketing of the final stage, comprising nine beach-front town houses and DPI, with the assistance of MPV, to investigate and prepare 99 apartments, and expects to finish construction in 2006. a business case for the redevelopment of the Wholesale The Government has made the decision to truncate Princes Fruit, Vegetable and Flower Markets at a new location. Pier, and is working with local residents, the City of Port The aim of this business case is to ensure that the continued Phillip and Mirvac to develop an acceptable proposal for demands for fresh produce in Victoria are met. the truncated pier. Recommendations for the future of the pier and foreshore will be presented to government Yarra Arts Integration Project by the end of 2004. The Yarra Arts Integration Project will put in place key infrastructure that enhances and further develops Melbourne Wholesale Markets redevelopment Melbourne's reputation as the major centre for arts The existing Melbourne Wholesale Fruit, Vegetable and and culture in Australia. The project will provide a new Flower Markets is owned and managed by the Melbourne 1,000-seat recital hall and a 500-seat theatre for the Market Authority (MMA). It has 5,700 registered users and Melbourne Theatre Company, as well as general urban is situated on 32 hectares of land along Footscray Road, improvement to the Arts Precinct. between the Port and the Dynon Rail Hub. Approximately In 2003–04, design and cost consultants with specific 75 per cent of the State’s wholesale trade in fruit, expertise in theatre and recital hall design were appointed; vegetables and cut flowers, flow through the market. functional briefs for both buildings were developed following The existing facilities on Footscray Road are at the end of an extensive stakeholder consultation process; and concept their economic life. Any redevelopment on the existing site designs for both buildings were completed and costed. could only prolong that life for a further 5–10 years. An Interim Recital Hall Board has been appointed The Government’s recent Victoria: Leading the Way statement by government. announced a budget allocation of up to $4.7 million for Infrastructure Delivery and Management DOI Annual Report 2003–04 19

Contract documentation will be completed by early 2005 and Heritage Victoria recognised the Heritage Precinct as worthy construction is expected to begin in July 2005 following of listing on the State Heritage Register in June 2004 and this tender assessments and contract award. The new facilities unique precinct will be incorporated into the redevelopment will open to the public in December 2007/January 2008. of the site. Planning approvals for key components of the project were issued in the latter half of 2003–4 and Siting of new generation industrial waste construction of the Display Village and market houses began. management facilities The overall post-Games Village project, when completed Establishing long-term waste containment and soil-recycling in 2012, will comprise 190 houses, 710 apartments and facilities is essential in order to implement the Government’s a 100-bed aged-care hostel. policy to phase out the disposal of prescribed industrial Melbourne Sports and Aquatic Centre Stage 2 waste to landfill. The identification of suitable sites and the establishment of modern industrial waste management The Melbourne Sports and Aquatic Centre Stage 2 is another facilities is a complex and sensitive matter, and considerable Commonwealth Games project under the responsibility of the progress was made on this project in 2003–04. Minister for Commonwealth Games. MPV has been managing the design and documentation process on behalf of DVC. Based on extensive studies into the establishment of a An Early Works Contract for Demolition was completed in soil recycling and treatment facility at a site proposed by late 2003 and a contract was executed with John Holland Gippsland Water at Dutson Downs, the Minister for Major Pty Ltd for the main works on 30 December 2003. The project Projects invited Gippsland Water to proceed to the statutory is scheduled for completion in the third quarter of 2005. approvals phase. If Gippsland Water is successful in obtaining the required Former Fishmarket site approvals, Victoria’s first soil recycling and treatment facility In October 2003, the Oceanis/Far East consortium was could be operational by mid-2005. appointed as the preferred developer to redevelop the A preferred site has been identified at Nowingi (between former Fishmarket site at the western end of Flinders Street. Ouyen and Mildura) for the construction of a world’s best The accepted proposal is a mixed-use development that practice long-term containment facility. The facility will will be underpinned by a commercial office complex, provide safe storage of industrial wastes that cannot retail outlets along Flinders Street and a substantial extension be avoided or recycled. A detailed EES is being conducted to the existing Melbourne Aquarium. The consortium is to confirm the suitability of the site. currently marketing its development concept and anticipates The Government is committed to delivering new facilities it will satisfy all the conditions attached to the development that are world’s best practice, environmentally and agreement. financially sustainable for industry, and provide sustainable The removal of the Flinders Street overpass is an element management of industrial wastes for the community. of this project, with planning work on the removal of the overpass under way. The Government is contractually Commonwealth Games Athletes’ Village committed to the removal of the overpass when the The development of the Commonwealth Games Athletes’ development agreement conditions are satisfied. VicRoads Village falls under the responsibility of the Minister for will manage this work in consultation with the City of Commonwealth Games. MPV is managing the tender Melbourne, public transport operators and neighbouring design and documentation process on behalf of the landholders. Department for Victorian Communities (DVC). Yarra Precinct Pedestrian Link The planning approvals process under the Commonwealth Games Arrangements Act 2001 progressed during 2003–4 On 5 May 2003, the Government announced its commitment with the Planning Advisory Committee recommendations to build a 525-metre pedestrian link from the Birrarung announced in August 2003. The Project Delivery Agreement Marr parkland across the Jolimont rail yards to Yarra Park between DVC and a consortium of Australand Holdings Ltd, and the Melbourne Cricket Ground. Citta Village Park Pty Ltd and Bayslore Pty Ltd was executed Located in the Sports and Entertainment Precinct, which will in December 2003. be the centrepiece for the 2006 Commonwealth Games, the Yarra Precinct Pedestrian Link will be crucial in reducing waiting times for pedestrians attending the Games. More importantly, it will be designed to contribute to the quality 20 DOI Annual Report 2003–04

of Melbourne’s public realm, creating a sense of journey Construction began with a formal ‘sod turning’ event on through an urban landscape that will showcase some of 3 August, and works, including installation of major sculptural Melbourne’s greatest assets. The project is expected to be elements, are expected to be largely complete by 15 October, finished in late 2005. the anniversary of the bridge collapse. Following an evaluation of 12 design options, the Govern- Melbourne Convention Centre development ment endorsed a preferred design concept which comprises: The Government has committed $367 million for the • a pedestrian bridge rising out of the mid-terrace of development of a new convention centre on Southbank, Birrarung Marr and crossing Batman Avenue adjacent to the Melbourne Exhibition Centre. The project is to be nominated under the Project Development and • an elevated plaza/pedestrian distribution node in the Construction Management Act with the Minister for Major area near Entrance A to the Tennis Centre with access to Projects responsible for project delivery. Batman Avenue and Melbourne Olympic Park The project will be delivered as a Public Private Partnership • a pedestrian bridge across the Jolimont railway corridor for the Minister for Tourism. • a pedestrian bridge across Jolimont Street/Brunton The development is expected to start its construction phase Avenue that finishes in Yarra Park. immediately following the Commonwealth Games in March Bonegilla Migrant Reception Centre 2006 and be open to the public in late 2008. Heritage Park Enhanced project planning and A sum of $2 million was made available for the management in DOI development of Bonegilla Block 19, a former post-Second The Government is investing in large and complex projects World War migrant settlement camp east of Wodonga, to and DOI has been charged with managing many of these. mark the contribution these migrants have made to Australia DOI is enhancing its skills and resources to handle these and to provide tourism activity in the Wodonga region. projects and is now placing greater emphasis on robust The construction of new facilities at the site will be finished project development, assessment, delivery and the in November 2004. A tender to design the exhibition display management of infrastructure. Strategies were put in place is about to be released and an artist will be selected from within DOI in 2002–03 to ensure that expertise is applied the short list developed in late 2003. across all project planning and management processes. Parklands Albury Wodonga, who will manage the facility One of the most significant of these is the creation of a once it is built, has indicated that their intention is to launch Project Review Committee, chaired by the Deputy Secretary the site in April 2005. and the Executive Director of the Infrastructure Projects Division. This new process has been established to oversee DOI is enhancing its project planning and all project planning and management processes. management skills in order to ensure the best outcomes for the State.

West Gate Bridge Memorial Park The construction of the West Gate Bridge Memorial Park will provide a lasting tribute to the memory of the 35 men who lost their lives on 15 October 1970 when the bridge collapsed while it was being built. The Government has worked closely with the community stakeholder group, West Gate Bridge Memorial Park Association, which is an umbrella group representing the interests of the Industrial Deaths Support Advocacy; Victorian Trades Hall Council; and western region green groups. The project works will be managed by the John Holland Group, which is contributing construction services. 21

3Outcome 3 Access and Mobility 22 DOI Annual Report 2003–04

Outcome 3 Access and Mobility

his outcome aims to improve the quality of life Key achievements of Victorians by providing equitable and efficient transport access to people, places, goods and services. Melbourne 2030 – Transport Planning In this, DOI supports a range of the Government’s T Melbourne 2030 is the Government’s strategy for managing Growing Victoria Together priorities, including growing growth in Melbourne. Primary responsibility for the strategy is and linking all of Victoria, creating more jobs and thriving, now with the Department of Sustainability and Environment innovative industries, building cohesive communities and (DSE), with DOI retaining responsibility for transport aspects reducing inequalities. of the strategy. During 2003–04, a range of strategies and initiatives were By 2030, Melbourne is expected to grow by up to one million implemented to help achieve this goal. They aimed to: people and an estimated 620,000 households, generating • better manage the existing road and rail transport an extra three million trips per day on the city’s road and system and influence travel demand to increase network transit systems. A key direction in Melbourne 2030 is to capacity and ease traffic congestion make more activities accessible by short trips to activity • improve the overall quality and safety of public transport centres and by public transport. To meet the challenges services of this future growth in travel, Melbourne’s public transport services are being progressively improved in line with the • increase public transport patronage Government’s Growing Victoria Together aim to more than • provide greater levels of equity and choice in terms of double public transport mode share (from 9 per cent to travel alternatives 20 per cent of all motorised trips) in the metropolitan area • improve mobility and access to services in regional and by 2020. rural Victoria. For further information, see www.melbourne2030.vic.gov.au Several projects that will improve access and mobility in During 2003–04, DOI continued to coordinate the regional Victoria, including the introduction of Regional transport planning and policy aspects of Melbourne 2030, Fast Rail services and the reopening of country passenger contributing to strategic planning for growth areas, which rail lines, are included in the Rural and Regional Development is most advanced for the Wyndham, Casey/Cardinia and chapter of this report. In addition, important initiatives to Whittlesea growth areas. DOI began an intensive transport improve the level of safety and security for travellers are modelling study for the Wyndham growth area covered in the Public Safety and Security chapter. to assess current transport and development patterns and Further details relating to specific projects can be found provide analysis to help determine future infrastructure at the web addresses listed beside those projects. investment options. Intensive work was also undertaken to improve integration between programs for arterial roads, VicRoads makes a substantial contribution to the Access freight, and train, tram and bus service improvements. This and Mobility outcome group through its development and work will provide the basis of a Metropolitan Transport Plan management of the State’s road network. Key achievements which is expected to be released later in 2004. for VicRoads are summarised in the section on Statutory Authorities in this report. Transport advice was provided to assist planning projects within municipalities, such as the Inner Melbourne Action Plan. DOI also supported the development of local government’s capacity to promote sustainable and integrated transport planning, and the development of green travel plans and behavioural change through the TravelSMART initiative. The Local Government Integrated Transport and Mobility Project, including the Thinking Transport web site, was prepared for DOI by the Victorian Local Government Association. For further information, see www.thinkingtransport.org.au Access and Mobility DOI Annual Report 2003–04 23

Integrated transport studies During 2003–04, DOI led and collaborated in a range of integrated transport studies in inner and outer Melbourne suburbs. Details are provided below.

Inner West Integrated Transport Study A draft strategy is being prepared for Melbourne's Inner West that aims to integrate transport planning for this region over the next 20 years. The strategy will address all transport modes, including walking and cycling, and emphasises opportunities for better integration between transport modes and land-use policy. The draft strategy is being developed with guidance from a Steering Committee comprising representatives from the Cities of Hobsons Bay, Maribyrnong and Moonee Valley, as well as State government agencies. For further information, see www.doi.vic.gov.au/innerwest

Northern Central City Corridor Strategy A draft strategy for the Northern Central City Corridor was The new partnership agreements bring stability and financial released for comment between August and November 2003. viability to the public transport system while retaining the Issues considered in the study include traffic congestion and benefits of the original contracts. These benefits include related environmental, health and social concerns, public requirements for fewer late-running or cancelled services, transport within and feeding through the area, conditions greater growth in patronage, delivery of capital works on for walking and cycling, and the potential for reduced car time and budget, and workforce stability. dependency. Other initiatives to be delivered under the new partnership For further information, see www.doi.vic.gov.au/innernorth agreements include:

North East Integrated Transport Strategy • at least an additional 100 customer service staff for trains and 50 for trams DOI and north-eastern local councils continued working on this study to assess regional transport needs in the • staffing of at least 31 extra stations in the morning peak north-eastern suburbs. Initial public consultation was and 22 extra on weekday afternoons, on a rotating basis undertaken in late 2003 to identify issues for consideration • increased security patrols on trains from 9.00 pm to the by the study. The aim is to develop a strategy that provides last train a clear regional framework for transport development, sets • all-night New Year’s Eve services on all train routes, priorities and investment over the next 20 years, addresses tram services to 2.00 am and all-night NightRider buses all transport modes, and identifies opportunities for better integration between modes and land use policy. • the purchase of new trains and trams For further information, see www.doi.vic.gov.au/northeast • improved standards for the upkeep of trams, tram stops and railway stations Public transport operations • the introduction of a tram priority system to reduce tram The Government entered into new five-year partnership travel times and increase reliability. agreements for the operation of Melbourne’s train and The new agreements have retained performance standards tram services which began on 18 April 2004. As a result that are closely monitored and reported through the of the new agreements there is now a single train operator quarterly Track Record bulletin. – Connex – and a single tram operator – Yarra Trams – that will result in improved services for customers and better Connex is engaged in a comprehensive program to integrate value for money. the former NX suburban M>Train network with its own and address service issues. It is streamlining the management The new partnership agreements were negotiated following of the train fleet, replacing older trains with new ones and the withdrawal of NX from all three of its franchises in continuing to recruit and train new drivers. A considerable December 2002. improvement in the reliability and on-time running of Connex services is expected once the integration is complete. 24 DOI Annual Report 2003–04

Metlink Metlink, the new industry-wide body responsible for public transport marketing, ticketing and passenger information, was established on 18 April 2004. Its objective is to provide coordinated, integrated customer information to achieve increases in patronage, make it easier for customers to move through the system, and improve customer information provided by the Metlink web site and call centre. In May 2004, Metlink introduced an interpreter service for public transport enquiries in 10 languages: Arabic, Chinese, Croatian, Greek, Italian, Macedonian, Somali, Spanish, Turkish and Vietnamese. Metlink also published three key public transport brochures in these languages: Fares and Travel Guide 2004, Travelling with the Right Metcard and Travelling with a Concession Metcard. In a further initiative, metropolitan train, tram and bus signs will be modernised and standardised as part of a $23 million enhancement project due for completion by mid-2006. For further information, see www.metlinkmelbourne.com.au DOI supports a range of the Government’s New ticketing system Growing Victoria Together priorities. The TTA was formed in June 2003 to develop and deliver a new smartcard-based public transport ticketing system to replace the current system, which will be phased out in 2007. The TTA has prepared the business case for the new system, including system design, a detailed costing and the procurement and financing strategy. Extensive customer market research conducted via surveys and focus groups has been an essential part of the design process, as has consultation with public transport operators and other stakeholders. The new ticketing system will be based on durable plastic smartcards that can be used across the metropolitan public transport network, V/Line Passenger rail and coach services, and bus services in selected regional cities. The TTA will seek bids from the market for the supply of the new system in July 2004. There is significant international interest in bidding for the project. As well as focusing on the new system, the TTA has been working with transport operators and Metlink to continuously improve the existing Metcard system. Since the Government resolved contractual issues with OneLink, Metcard system performance, particularly ticketing equipment reliability, has greatly improved. Access and Mobility DOI Annual Report 2003–04 25

Public Transport Ombudsman Cardholders are required to purchase a valid ticket for themselves and present their Companion Card for free The office of the Public Transport Ombudsman was transport for their companion. On country services, established in April 2004 to provide the community with companions will be issued with a complimentary access to an independent complaints-handling mechanism companion ticket. for issues relating to Victoria’s public transport operators. A Board and interim Ombudsman have been appointed, with www.companioncard.org.au a full-time appointment to be made in July 2004. Customers are able to refer issues to the Public Transport Ombudsman Connecting Transport Services Program if they are dissatisfied with the initial handling of a complaint The Connecting Transport Services Program is a significant by an operator. initiative designed to improve the safety and comfort of The Public Transport Ombudsman will consider complaints passengers transferring between different modes of public relating to passenger train, tram and bus operators, Metlink transport, including trains, trams, buses and taxis. and the Spencer Street Station Authority. Works include the construction of new bus interchanges, shelters and covered walkways, the installation and Public transport access for people upgrading of signs and lighting, the installation of security with disabilities cameras and measures to increase accessibility for people The implementation of measures to provide improved with disabilities and comply with the Disability access to public transport for people with disabilities Discrimination Act 1992. continued in 2003–04. Victoria’s public transport The program includes 43 metropolitan and 40 country operators are meeting their obligations to comply with locations, and work is complete at all but four locations, the Commonwealth Disability Discrimination Act 1992 which will be completed by late 2004. and current compliance estimates are: • metropolitan trains 100% Planning for public transport • country trains 89% In addition to delivering major reforms and projects this year, significant planning started for future public transport • trams 9% investments and improved service outcomes, including: • metropolitan buses 33%. • planning for the Dandenong Rail Corridor, Northern Public transport operators are undertaking a detailed Rail Group (Broadmeadows, Melton, Sydenham, assessment of compliance levels at railway stations and Upfield, Werribee, and Williamstown lines) and Clifton tram stops, while councils are assessing bus stops within Hill Rail Group (Epping and Hurstbridge lines) to meet their boundaries. future demand The new public transport partnership agreements include • a Metropolitan Rail Network Study Disability Discrimination Act compliance obligations for • a Modal Interchange Strategy operators, requirements to undertake a system-wide compliance audit and responsibility for the development of • a Park and Ride Strategy Disability Discrimination Act Action Plans for the duration • future SmartBus options of the contracts. • public transport to support the Transit Cities program Where train services are disrupted by major works, such as • integrating public transport with land development in the during the Spencer Street Station redevelopment and the growing areas of Melbourne through the Smart Growth Regional Fast Rail Project, interim arrangements are planning process established under Melbourne 2030. managed by operators to maintain access for people with disabilities. New and refurbished trains and trams Free public transport for companions of The program of progressively introducing new and the disabled refurbished trains and trams into Melbourne’s public transport system, as detailed in the agreements with In late May 2004 the Government implemented the new transport operators, continued during 2003–04. arrangement which sees companions of people with permanent disability entitled to free public transport. Under Thirty-eight new three-module and eight five-module these arrangements, companions who travel with holders Combino trams were delivered on schedule and are now in of the Victorian Companion Card are entitled to free public service, with a further 13 five-module trams to be delivered transport. On metropolitan transport services, Companion by November 2004. These low-floor trams provide new 26 DOI Annual Report 2003–04

levels of access and comfort for passengers and, together Return of W-class trams with the 36 Citadis trams already in service, form a fleet of Melbourne's historic W-class trams remain an important part 95 low-floor trams. At 30 m, the five-module trams are not of its tram fleet. A total of 53 W-class trams are operated only the longest Melbourne has ever seen, but also the by Yarra Trams, as required under its partnership agreement, longest trams in the Southern Hemisphere. Holding 190 to ensure that the much-loved trams remain in use. passengers, these super trams will be used for events that attract large crowds, such as football matches, the Grand All trams in the W-class fleet have been fitted with modern Prix, the Australian Open and the Commonwealth Games. braking systems to significantly improve their safety. They are also being progressively fitted with pantographs and The refurbishment of 119 A-class, B-class and Z3-class speedometers. trams was completed, with another 197 to be refurbished by June 2006. Modified W-class trams have begun service on the extended route 30 (City to Docklands via La Trobe Street) Twenty new six-carriage X’Trapolis trains have been delivered and will operate on this route exclusively. Once fitted and are now in service, with another nine to be delivered with pantographs, the remaining W-class trams will be by December 2004. Twenty-two Siemens six-carriage trains progressively introduced on routes 78 and 79 that operate have been delivered on schedule and are progressively along Church and Chapel Streets from Richmond to being introduced into service as drivers are trained, with St Kilda. City Circle W-class trams that operate in a loop a further nine to be delivered by February 2005. around Melbourne’s central business district will then Craigieburn Rail Project be fitted with pantographs. The Heritage (Further Amendment) Act 2004 enables Work began on the Craigieburn Rail Project with the movable objects not associated with a particular place to beginning of site investigation works in June 2003. be listed in the Heritage Register. DOI, VicTrack (the owners The project involves the extension of the metropolitan rail of the trams) and Heritage Victoria have begun the process services to Craigieburn from Sydenham, an upgraded of heritage listing examples of Melbourne’s historic trams, Craigieburn Station and a new station at Roxburgh Park, including various types of W-class trams. and will be complete by 2006. For further information, see www.doi.vic.gov.au/craigieburnrail Bus service improvements

Tram priority program New trial community loop buses and other bus service enhancements were introduced in outer metropolitan As part of the new partnership agreements, the Government Melbourne in 2003–04. TrainLink loop services operate and Yarra Trams committed to a $30 million program to between Epping and South Morang, and between improve tram travel times and reduce delays caused by Cranbourne and Cranbourne East, and meet every train to trams operating in congested traffic environments. The and from the city at both Epping and Cranbourne railway program, to be delivered by VicRoads, includes linking the stations. Extra bus services were introduced in Diamond VicRoads traffic management centre and the Yarra Trams Creek, Eltham, Endeavour Hills, Research and Warrandyte. control centre; reviewing motorists’ responsibilities when Extra bus services will be available for people living and driving near trams; and changes to traffic environments, working in Caroline Springs with the extension of three such as right-turn bans and the introduction of hook turns routes from mid-July 2004. and technologies such as tram priority at traffic lights. The The Bus Replacement Program continues to bring into program will mean both shorter journey times and greater service new, modern, air-conditioned buses, including reliability for passengers. environmentally cleaner buses that are compliant with Vermont South Tram Extension the Disability Discrimination Act 1992. Under contractual agreements with operators, 100 school, 90 metropolitan The Vermont South Tram Extension project, a major transport and 25 regional buses were replaced in 2003–04. initiative for Melbourne's eastern suburbs, will upgrade public transport along the Burwood Highway between East Burwood and Knox. The project involves extending the tramline from Blackburn Road to Vermont South, upgrading the bus service from Vermont South to Knox City and constructing a transport interchange to facilitate transfers between tram and bus services. A $22.9 million design and construction contract was awarded to Thiess Pty Ltd in April 2004 and work started on 8 June 2004. Access and Mobility DOI Annual Report 2003–04 27

SmartBus Peak Service taxi licences Following the continued success of SmartBus services The package of taxi reforms announced by the Government on Blackburn and Springvale Roads, where patronage in May 2002 included the annual issue of 100 Peak Service growth has exceeded 20 per cent, work started to roll taxi licences for a period of six years, to improve the out SmartBus services on Warrigal Road and to develop availability of taxis at peak times and late at night. The new a common information and communication technological taxis are authorised to operate between 3.00 pm and 7.00 am platform for SmartBus across Melbourne. This project will seven days a week and during specified major events. culminate in SmartBus services being implemented on The first 100 Peak Service taxis began service between Warrigal Road early in 2005. August and December 2003. Applications for the second For further information, see www.doi.vic.gov.au/smartbus batch of 100 peak service taxi licences were invited in April 2004. Fifty of these taxis will start service by October 2004, Multi Purpose Taxi Program with the balance expected to be on the road by early 2005. The Multi Purpose Taxi Program subsidises taxi trips for Peak Service taxis are highly distinctive, sporting a green Victorians who suffer a severe and permanent disability, roof and identifying ‘PS’ number plates. as certified by their doctor, that prevents them using trams, trains or buses. The subsidy is 50 per cent of each fare, to Station Pier rehabilitation a maximum of $25 per trip. Since 1999, the Government has undertaken a major works In late 2003, the Government announced changes to the program to rehabilitate and upgrade the historic Station program to maintain its long-term sustainability. Following Pier. Each cruise-ship visit to Melbourne is estimated to extensive feedback from groups representing people with generate an average $1 million in direct and indirect a disability and existing members of the program, the economic benefits to Victoria, and the Government’s goal Government further refined some of the reforms. As a is to develop the pier as a world-class facility to increase result of the refinements: cruise-ship visits to Victoria. • from 1 July 2004, program members will have their Works to the value of $1.8 million were completed during annual subsidy capped at $550 (indexed annually 2003–04 and included upgrades to the inner-building by CPI), or up to $1,100 worth of taxi fares balconies, timber decking between the inner and outer buildings and the replacement of the outer building • members with certain disabilities will be automatically electrical switchboard. exempt from the annual subsidy cap • people who can demonstrate additional need will have Cruise-shipping strategy access to a further subsidy The Government continued the implementation of the • from 1 July 2004, the Government will pay for an increase Victorian Cruise Shipping Strategy – Destination Victoria in in taxi drivers’ wheelchair lifting fee to recognise the 2003–04. Key achievements in cruise shipping include: extra time and effort taken and to provide an incentive • hosting six visits of the largest cruise ship to visit Station to prioritise trips for people who use wheelchairs Pier, the Star Princess • in addition to the annual budget allocation, $29.2 million • completing a security risk assessment and preparing will be allocated over the next four years to fund the technical documents in readiness for the implementation new initiatives. of risk treatments For further information, see www.taxi.vic.gov.au • completing the Station Pier Maritime Security Plan and obtaining DoTARS approval. Cruise-ship visits declined from 31 in 2002–03 to 23 in 2004–05, however, this is still considered a strong result in context of the uncertainties arising from global terrorism and its impact upon the tourism industry in general. Furthermore, the impact of this reduction in ship visits upon numbers of cruise-ship passengers visiting the State was reduced as ships are getting larger and the average number of passengers travelling on cruise ships visiting has increased over the same period. 28 DOI Annual Report 2003–04

Rural and regional access and mobility TravelSMART program Access to transport is one of the most important issues TravelSMART is a State government travel demand facing many rural and regional communities. In particular, management program that helps people reduce their there is ongoing concern about how best to serve the dependency on car travel and choose sustainable alternatives transport needs of people in small settlements and rural such as cycling, walking or catching public transport. areas who do not have access to private cars. TravelSMART plays an important role in helping to meet The three-year Transport Connection Program began during the Government’s objectives to: 2003–04 and aims to address the needs of people facing • increase public transport usage transport disadvantages by making greater use of existing community and public transport facilities. The program • reduce inefficient car travel supports nine community-based, flexible transport initiatives, • reduce greenhouse gas emissions in places ranging from remote areas to suburbs on • promote a healthy lifestyle by increasing physical activity Melbourne’s fringe. through active transport (cycling and walking). A different approach has been used to develop a Community A small scale TravelSMART Communities pilot conducted Transport and Access Strategy for the two north-east along the Alamein train line during 2003 recorded significant municipalities of Indigo and Towong, building on earlier increases in the use of public transport, walking and cycling, work undertaken in the Latrobe Valley. These studies as well as achieving a notable decrease in car driver trips. identified ways to improve existing public and community These encouraging results supported the further development transport services, based on the communities’ needs, of the program. socioeconomic profiles and other strategic factors. In April 2004, a larger TravelSMART project began in the Walking and cycling local government area of Darebin. This $3 million program Walking and cycling are important ‘active transport’ modes. is being delivered to up to 30,000 households in the target They provide people with basic access and healthier lifestyle area. The May State Budget announced a $5 million choices and also have the potential to reduce pollution and allocation to undertake further TravelSMART Community partially offset dependence on the motor car. projects in 2005, targeting up to 50,000 households. DOI continues to emphasise the need to integrate these TravelSMART Workplaces is a partnership program jointly non-motorised transport modes with public transport delivered by DOI and participating municipalities to help and road infrastructure, particularly through the workplaces change the way their employees travel to implementation of Melbourne 2030 and Transit Cities, work. Almost 70 public and private-sector employers are and DOI’s own integrated transport studies. participating in the program. One participant, the Alfred Hospital, recorded a 6.1 per cent decrease in staff driving During 2003–04, DOI worked with municipalities, to work. Metlink, and other State and Commonwealth government departments to encourage collaboration on initiatives that TravelSMART Universities works directly with first-year increase awareness of, and facilities for, non-motorised students to encourage more sustainable travel to and from transport. This included representation on the Victorian university, with approximately 6,000 first-year students Bicycle Advisory Council. A resource guide called, Providing at La Trobe University’s Bundoora campus and Monash For Pedestrians, was prepared and is available on DOI’s University’s Clayton campus registered in the 2004 program. web site, www.doi.vic.gov.au, by conducting a keyword More than 60 primary and secondary schools participated search for ‘pedestrians’. in the TravelSMART Schools project in 2004. This project Funding was provided to install secure bicycle lockers aims to encourage students to choose more sustainable at railway stations to encourage cycling access as an travel to school using a travel planning approach that alternative to car travel. This project is also supported by incorporates funding for minor infrastructure such as funding from the Commonwealth Government’s Cycle bicycle cages, walk-to-school days, integration with the Connect initiative, and will be implemented in 2004–05. Walking School Bus (WSB) program, and a curriculum-based program mainly for children in the upper primary years. A major new initiative has been to ensure that all new road projects provide appropriate bicycle lanes or paths. TravelSMART is supported by the Victorian Government, together with funding from the Commonwealth Government’s National Travel Behaviour Change Program. For more information, see www.travelsmart.vic.gov.au 29

Outcome 4 Connecting Victoria 4 30 DOI Annual Report 2003–04

Outcome 4 Connecting Victoria

CT is a major contributor to growth in the gross Key achievements domestic product (GDP) and is vital to the economy both as an enabler and as an industry in its own right. Growing the industries of the future I DOI, through MMV, has a key role in implementing the Government’s ICT agenda, Connecting Victoria, which Investment attraction aims to deliver the benefits of technology to the State. Despite the difficult global environment, the Victorian MMV contributes to the Government’s Growing Victoria Government facilitated a series of new ICT investments in Together objectives through policies that build cohesive the State in 2003–04. These investments secured more communities and reduce inequalities, grow and link all than $140 million in new capital investment and generated of Victoria and create more jobs and thriving, innovative more than 1,000 new jobs. Major investments included: industries across Victoria. NICTA Key achievements in 2003–04 are outlined below. Further The Victorian node of the National Information and details relating to specific projects can be obtained at the Communications Technology Institute of Australia (NICTA) web addresses listed beside those projects. was announced in June 2004. The $50 million facility will www.mmv.vic.gov.au/connectingvictoria be located at the University of Melbourne and will be the pre-eminent telecommunications research facility for NICTA, adding to the world-renowned telecommunications research facilities already located in Melbourne.

ATOS ORGIN ASIA PACIFIC Data Centre

The Asia Pacific data centre located in Noble Park opened in February 2004. It will employ approximately 100 people and represents an overall investment of more than $4 million. The services offered by the data centre will give Victorian businesses a strategic advantage by providing access to high-level systems integration, business-to- business services, desktop services and managed operations. The benefits that these applications will bring to Victorian companies include reduced costs and increased production, industry growth and competitiveness.

NEC Broadband Centre In December 2003, NEC announced its $70 million high- tech investment to establish its Next Generation Broadband Research and Development (R&D) Facility in Mulgrave. The investment created 63 new highly skilled R&D jobs. A key area of R&D focus by NEC will include the development of Internet protocol-related broadband products. Industry development A range of initiatives to further develop the IT industry were implemented throughout 2003–04. Details of these initiatives are outlined below.

Trade fairs and missions program The Government provided assistance to more than 90 Victorian ICT companies to attend international trade fairs, conferences and missions in 2003–04, resulting in a projected $81 million in exports. www.mmv.vic.gov.au/tradefairs Connecting Victoria DOI Annual Report 2003–04 31

Major events attended in 2003–04 include: E3 (Electronic Entertainment Expo) E3 is the world’s largest trade event dedicated exclusively to showcasing interactive entertainment and related products. It is acknowledged as the must-attend event for professionals working in every part of the interactive entertainment industry. Held in Los Angeles, 21 Victorian companies attended E3 and participated in the Australian stand. CeBIT Hanover Germany CeBIT 2004 was held during March 2004 in Hanover, Germany and is the biggest ICT trade fair and exhibition in the world. More than 500,000 attendees and 7,000 exhibitors from 50 countries attended CeBIT 2004. MMV supported 14 Victorian companies to exhibit and network at CeBIT 2004. Industry networks During 2003–04, four additional specialist clusters were Capability Maturity Model Integration Premier Steve Bracks established under the Next Wave initiative. More than and Minister for ICT, 300 small-to-medium enterprises (SMEs) participate in the The CMMI program is designed to assist software developers Marsha Thomson at Next Wave program. Nine clusters have been established to in Victoria to improve the quality of their software by under- the launch of the Xbox date, four during 2003–04 (Victoria.NET, Open Source, taking CCMI accreditation. Development Kit Program Spatial Systems, eLearning). Industry networks for micro- www.mmv.vic.gov.au/cmmi along with students from electronics, photonics and eLearning continue to promote Keilor Downs College. Victoria’s world-class capabilities. ICT Industry Symposiums www.mmv.vic.gov.au/clusters A new initiative for 2003–04, ICT symposiums were held to promote opportunities for the local ICT industry with the eLearning Strategy 2006 Commonwealth Games, the transport sector and with The Government’s strategy World Class Business – Growing government itself. Victoria’s eLearning Industry was released in April 2004. The strategy aims to build the Victorian eLearning industry Improving infrastructure and access by promoting collaboration, building local demand and The Government’s Regional Connections policy promotes improving international competitiveness. The eLearning sector the development of regional and rural communications in Victoria currently employs approximately 1,500 people infrastructure. In 2003–04, there were a number in approximately 150 SMEs. of achievements in this field, details of which are www.mmv.vic.gov.au/elearning provided below.

The computer game industry Customer Access Demonstrations Network Program Highlights in 2003–04 include securing the Australian The Customer Access Network Demonstrations Program Games Developers Conference for Melbourne until 2005. (CANDP) aims to increase investment in alternative tele- The Government also extended the successful console communications access infrastructure in regional Victoria. developer kit program to include X-Box development and Five projects have been selected to receive first-round the Academy of Interactive Entertainment was officially funding of $3.93 million to demonstrate a range of opened in August 2003. Victoria’s success in the Computer different broadband technologies and business models Games sector was reinforced when Melbourne was named in areas across the State. A second round of funding will as one of the top four locations in the world for computer be announced in late 2004. games by WIRED magazine. www.mmv.vic.gov.au/can www.mmv.vic.gov.au/games 32 DOI Annual Report 2003–04

Broadband Innovation Fund Connecting Communities The Broadband Innovation Fund (BIF) aims to accelerate A range of programs to reduce inequality in the use of the roll-out of broadband to government agencies in health, information and communication technology and to help education and other key sectors to improve business efficiency create and strengthen communities was delivered during and service delivery and to encourage high bandwidth data the year under the Connecting Communities policy. Details services in regional communities. are provided below. The first BIF project, the Hume Regional Broadband Digital My Connected Community Imaging Project was announced in April 2004 and will My Connected Community provides Victorian community provide a state-of-the-art online medical service, whereby organisations with training and support to go online, digital X-rays and reports will be sent across the HumeNET improve Internet skills and stay in touch with other broadband network to regional and remote clinicians in community organisations. During 2003–04, more than north-east Victoria. 600 online communities were established, bringing the Telecommunications Spend and Demand total number of community groups that have become A whole-of-State and six regional Telecommunications involved in the program to 2,300 since it began. Spend/Demand Reports were released in mid-2004. http://mc2.vicnet.net.au/ The reports aim to reduce the cost of information discovery skills.net for potential investors in telecommunications infrastructure through the publication of data on current and projected Building on the results achieved by the Connecting regional telecommunications expenditure. The Telecommuni- Communities programs since 1999, more than cations Spend/Demand Reports will be updated on an 11,000 Victorians received Internet training and access annual basis. in 2003–04 through the Skills.net program. This brings to 104,000 the total number of Victorians who have Research into ICT needs and possible solutions for a benefited from the Skills.net program. More than number of key regional industries will also be published 1,000 Skills.net centres have been established with the (for example, with professional and technical services majority (82 per cent) located in regional areas. Examples industries in northern Victoria). of Skills.net projects include: Skills.net at the Basin and www.mmv.vic.gov.au/info_discovery the Greek Welfare Skills.net project in Northcote and Commonwealth Advocacy the Council of the Ageing (Victoria) project. DOI continued to provide an advocacy role to the http://www.skills.net.au/ Commonwealth for improved regional telecommunications. eGaps It did this in a number of ways, including participating in The eGaps project has established Internet access points the development of a national strategic plan for regional throughout the State where there were major gaps in telecommunications and through contributing to Common- Victoria’s public Internet access network. In 2003–04, wealth policy reviews, such as the review of the operation 30 public Internet access terminals were made available. of the telecommunications universal services obligation. This brings to 192 the number of terminals established at more than 80 sites since the eGaps program started. www.egaps.vicnet.net.au Connecting Victoria DOI Annual Report 2003–04 33

i@Directory and How To guide PostionMentor Launched in November 2003, the i@ Directory is an online PostionMentor is an up-to-date online ICT careers and course directory of more than 1,000 public Internet access sites information resource for students and career changers. across Victoria. Designed to assist people locate their nearest The web-based tool provides information on 25 common public Internet access terminals, sites listed in the Directory ICT careers. Users can link through to educational institution include schools, libraries and community centres. Information web sites from the site. PositionMentor was evaluated in early includes operating hours and facilities available at the site. 2004 and was extended based on its high-usage statistics. The i@ How to use the Internet Guide – an online guide www.itskillshub.com.au/PositionMentor/home.asp to teach people how to search the Internet and send Industry/Education Collaboration an email – was also released in 2003–04. The Guide is available in 10 languages and has been distributed, along Research was undertaken in 2003–04 to determine the with supporting materials, to 820 sites across Victoria. extent and success of partnerships between the Victorian ICT industry and local universities and TAFEs. The research www.internet-access.vic.gov.au indicated high levels of collaboration but also identified WellCONNECTED: Studying VCE from Home challenges for the education and ICT sectors in increasing effective collaboration. WellCONNECTED is a pilot program that links young people absent from study because of illness with their school by using technology. The 18-month pilot began in April 2004 and is being managed by the Royal Children's Hospital Information and Communication Technology Education Institute with funding from the Victorian Government and the support of Telstra Countrywide. is a major contributor to growth in the gross www.mmv.vic.gov.au/wellconnected domestic product. Building a learning society A range of initiatives under the Government’s ICT skills and knowledge framework to build a learning society, skills x Games Teacher Professional Development knowledge=growth, was implemented during 2003–04. A pilot program with the Games Developers Association New initiatives and research also began during the year. of Australia to equip university and TAFE computer games Details of the initiatives are outlined below. teachers with the latest information about the games New Realities industry and the skills required for a games career. The professional development program aims to improve the In 2003–04 the New Realities ICT careers awareness program teaching of the next wave of computer games professionals. was independently evaluated and found to be highly successful in achieving its awareness objectives. Over the ICT R&D Research life of the program, 40,000 students from 370 schools Research started on the current state of ICT R&D in Victoria. received a presentation on the importance of technology The research will provide a comprehensive analysis of skills under the New Realities program. current R&D activities in the State and will inform future www.mmv.vic.gov.au/newrealities policy and program development.

ICT Skills Snapshot Boosting ecommerce The ICT Skills Snapshot provides a valuable analysis of Details of key initiatives from the Government’s eCommerce the ICT industry with up-to-date information on ICT labour policy – Victoria’s eCommerce Advantage – implemented market trends and emerging skills forecasts. In 2003–04, during 2003–04 are outlined below. the Victorian Government was the only government in Australia to produce a comprehensive set of ICT skills statistics on a regular basis. The material for the ICT Skills Snapshot is taken from the ICT Skills Tracking and Monitoring System, the only comprehensive ICT skills tracking system in the country. www.mmv.vic.gov.au/snapshot 34 DOI Annual Report 2003–04

eCommerce Roadshows development services, online management services and quality assurance services. In the past two years, the Government has funded more than 60 eCommerce Roadshow events, involving more than Victoria Online 1,400 businesses. The majority of these were held in regional The Victorian Online Gateway was launched in September Victoria, including Orbost, Yarram and Lakes Entrance, 2003 to create the best online access to government for Mildura, Swan Hill and Ouyen. An independent evaluation Victorians. The portal features sophisticated indexing and of the eCommerce Roadshows program in 2004 confirmed search capabilities to make it easier for Victorians to find that the program had met its objectives and the program and access information and services from Commonwealth, was extended in 2004-05. State and local government. www.mmv.vic.gov.au/roadshow www.vic.gov.au eCommerce Exhibition Projects Program Telecommunications Purchasing and The fourth round of funding under the eCommerce Management Strategy Exhibition Projects program (ECEPP) was carried out in TPAMS was established to provide a strategic framework for 2003–04. The aim of the program is to support clusters the procurement and management of telecommunications of Victorian SMEs to develop innovative approaches to services across the whole of the Victorian Government. business-to-business eCommerce. To date, the Government has supported 14 ECEPP projects with more than 200 TPAMS will provide a purchasing framework that meets businesses participating. The fourth round of ECEPP the Victorian Government’s policy objectives for funding was managed by DIIRD. telecommunications and will replace a number of existing whole-of-government telecommunications contracts at www.mmv.vic.gov.au/ecepp the end of their current term. Progress to date for the Promoting a new style of government 2003–04 period includes the following: A range of initiatives was implemented in 2003–04 to • the initial TPAMS contracts were executed – VOTS promote a new style of government that utilises ICT to the contract awarded to NEC Business Solutions fullest and maximises access, learning and value-for-money • transition began from the StateNet arrangement to the in relation to ICT services. Details are outlined below. VOTS arrangement Chief Technology Officer • funds were allocated to all departments for Local Area The Chief Technology Officer (CTO) was appointed in Network (LAN) upgrades – enabling the take-up of December 2003 and is responsible for the whole-of- convergence technology government approach to ICT infrastructure, projects and • the Telecommunications Carriage Services (TCS) Request contracts as determined by the Office of Chief Information for Tender was released and evaluation begun Officer. Projects the CTO is currently managing include • ongoing operations continue – TPAMS is working with Victoria Online, TPAMS, and Project Rosetta. Details are government departments and agencies to ensure that outlined below. business requirements are met and transitional www.mmv.vic.gov.au/cto arrangements are as smooth as possible. Whole-of-government ICT contracts www.mmv.vic.gov.au/tpams

A range of strategic whole-of-government contracts for the Project Rosetta supply of ICT was negotiated in 2003–04. These contracts Project Rosetta will provide government with a secure, will deliver annual savings to government. flexible, electronic directory service. It will include the core www.mmv.vic.gov.au/ict_contracts infrastructure and a foundation for government services such eServices panel as secure access to eGovernment services. ICT firm Novell was recently awarded the contract to design, develop, implement Originally established in March 2003, a refresh of the panel and support the project over the next five years. was conducted in June 2004 resulting in 146 companies (26 new companies) being appointed to the eServices www.mmv.vic.gov.au/rosetta panel. The panel simplifies the procurement process for contracting ICT services in the public sector. Services offered include eServices strategy development, application 35

Outcome 55 Rural and Regional Development 36 DOI Annual Report 2003–04

Outcome 5 Rural and Regional Development

OI's role in rural and regional development is Key achievements to implement integrated transport, energy and ICT solutions that connect communities across Marshall Station the State, support economic growth and enhance D In late 2002, the Victorian Government committed to employment and investment opportunities. building a new railway station at Marshall, south of Significant initiatives undertaken by DOI in 2003–04 to Geelong. In December 2003 it was announced that the enhance rural and regional Victoria include progress toward new station would be built at Marshalltown Road, Marshall, the introduction of Regional Fast Rail services to Ballarat, on the main Geelong–Warrnambool rail line, to provide Bendigo, Geelong and the Latrobe Valley, and a new railway direct rail access to Melbourne and Warrnambool to station for the Geelong region. residents of the developing southern parts of Geelong With the transfer of Freight Australia to Pacific National, the and the Surf Coast. Government has put in place mechanisms to build a good Information displays were set up at key locations in Geelong working relationship with the new leasee so that a range of in March and April 2004. They were well attended and the important rail, road and other infrastructure projects can extensive community feedback received will be taken into now proceed. account in the design of the station. The new station will A number of initiatives listed in the Connecting Victoria comply fully with the Disability Discrimination Act and will section of this Report also made a significant contribution have facilities for buses and coaches, a 100-space car park to the Rural and Regional development outcome. and customer toilets. Projects such as the CANDP, Broadband Innovation Fund, Tenders have been called for the design and construction My Connected Community, Skills.net, eGaps, eCommerce of the new station, car park, track work and signalling, roadshows, and the eCommerce Exhibition Projects Program and will be awarded early in the latter half of 2004. all enhance Information and Communication Technology services to businesses and the public, reduce inequalities Network Tariff Rebate in public access to information technology, and provide DOI has reviewed and revised the $57 million 2003–04 information technology training to people in rural and Network Tariff Rebate (NTR) scheme to concentrate on regional areas. providing assistance to smaller consumers. Expenditure DOI strategies to support the Rural and Regional Development on rebates of $34 million will be made available in 2004–05 outcome contribute to the Government’s Growing Victoria to reduce the impact of the higher costs of distributing Together priorities of growing and linking all of Victoria, electricity to rural, regional and outer metropolitan domestic promoting sustainable development, more jobs and thriving, and small business consumers. Under commercial contracts innovative industries across Victoria, and building cohesive negotiated with electricity retailers, the scheme is communities and reducing inequalities. implemented by rebates being directly credited to Details of these projects and others of significance to rural customers’ energy bills. and regional Victoria are outlined below. The new rebate began on 1 April 2004. The size of rebate Further details relating to specific projects can be found varies depending on their network area, tariff (or customer) at the web addresses listed beside those projects. category, how much electricity they use and proportion of off-peak use. VicRoads makes a substantial contribution to the Rural and Regional Development outcome group through its To further reduce electricity and firewood costs for non- development and management of the State’s road network. metropolitan households, a $2.5 million gas heater rebate Key achievements for VicRoads are summarised in the scheme was developed in conjunction with the Sustainable section on Statutory Authorities in this report. Energy Authority of Victoria (SEAV). This scheme encourages country domestic consumers who have access to the gas network to replace inefficient electric and wood heating with environmentally friendly gas heating. Rural and Regional Development DOI Annual Report 2003–04 37

Extending natural gas to regional towns 144 passengers and set new standards for safety, comfort, speed and reliability. Good progress was also made on DOI assisted with the task of identifying areas of need for installation of a new fibre-optic network for the new natural gas in 2002–03 and provided policy and regulatory signalling system. V/Line is managing the development advice in 2003–04 to Regional Development Victoria (RDV) of the new timetable that will draw on community on the $70 million Natural Gas Extension Program’s early consultation and extensive customer research. implementation stages. This program is designed to provide financial support to projects to connect regional areas to the For further information, see www.doi.vic.gov.au/fastrail reticulated gas network. The connection of gas to Bairnsdale and Paynesville has been fast-tracked and the extensive AusLink competitive tender process being conducted by RDV will The Australian Government's AusLink White Paper was shortly identify other towns to benefit from this program. released in June 2004, setting out an integrated approach to investment in land transport infrastructure, emphasising Country passenger rail services freight transport productivity and national economic The reintroduction of passenger rail services to Bairnsdale development. was launched on 2 May 2004 and on 10 July for returning The White Paper designates an AusLink National Network passenger services to Ararat. Two services now operate as a framework for investment in road, rail and intermodal each way every day on both lines. The reintroduction terminals, incorporating many of the priorities within of country passenger rail services is expected to improve Victoria advanced by the Victorian Government and the access and mobility throughout Victoria for more than freight industry. 200,000 regional Victorians, as well as promoting regional development and tourism. Options for the reintroduction The White Paper sets out the first AusLink five-year of passenger rail services to Mildura and South Gippsland program (2004–05 to 2008–09) of investment in strategic will be assessed during 2004–05. infrastructure, which for Victoria includes funding for: Rail: Wodonga Rail Bypass • Dynon Port rail link The Wodonga Rail Bypass project was delayed by the difficulties in reaching agreement with Freight Australia • Melbourne–Albury standard gauge and other stakeholders on the standardisation of the • Geelong–Mildura standard gauge north-west and north-east lines, and by the sale of Freight • Tottenham rail capacity upgrade. Australia to Pacific National. Land has been acquired for Member for Ripon, Joe the bypass and works to prepare the alignment have Roads: Helper MP (right) and continued, including the relocation of a trunk sewer • Geelong Bypass Works Infrastructure and a Broadcast Australia transmitter. • Deer Park Bypass Superviser, Ken McLean putting the final sleeper Regional Fast Rail • Pakenham Bypass to bed in the upgrade The Regional Fast Rail project will deliver a twenty-first • Calder Highway duplication Kyneton to Faraday. of the Ararat line century rail service across regional Victoria’s rail system and will provide a better transport platform for regional growth. Thirty-eight new trains will provide greater reliability and comfort for rail services between Melbourne and Ballarat, Bendigo, Geelong and the Latrobe Valley. The project is the biggest upgrade of regional rail in 120 years, with major construction works scheduled for completion in 2005. Over the past year, 170 km of track was upgraded with concrete sleepers and heavier rail on the Geelong, Latrobe and Ballarat lines – the majority of the track works on these lines – and progress was made on the Bendigo line. The first state-of-the-art train was completed in May 2004, with an extensive test program scheduled prior to its introduction in early 2005. Another 37 trains will be delivered progressively until late 2006. The new trains seat 38 DOI Annual Report 2003–04

Most of the projects are not fully funded by the Commonwealth Government and will require additional funding before they can be undertaken, for example, Geelong–Mildura rail-gauge standardisation. For others, such as the Deer Park Bypass, the funding comes both late in the program and is substantially less than what is needed to deliver the project. Consultations are continuing with DoTARS on the strategic freight network planning now necessary within each of the AusLink corridors, in order to resolve future investment priorities. Consultations have recently been completed on the terms of reference for a study to more fully scope the requirements for standard-gauging the rail network for freight and passenger services in north-west Victoria (the Geelong–Mildura corridor).

Regional Telecommunications Services The Government announced the Regional Connections policy in April 2002 that aims to improve the environment for investment in regional and rural telecommunications infrastructure. One of the key initiatives was the CANDP. Its prime focus is to support the development of investment strategies for the implementation of sustainable competitive 'last mile' broadband access services for rural, regional and DOI's role in rural and regional development remote Victoria. CANDP will demonstrate the commercial and technical is to implement integrated transport, energy viability of alternate Customer Access Network (CAN) and ICT solutions. infrastructure in different regional markets and the first funding round was completed in 2003–04. Details of the five projects announced are listed below: • Castlemaine SHDSL services installed by Bendigo Community Telco • Gippsland wideband mobile services (1XRTT) installed by Telstra Countrywide for the Wellington Shire Council • broadband wireless (Multichannel Multipoint Distribution Services) installed by GMTel for the Shepparton area • Northern Grampians and Pyrenees shires, where OMNIConnect are installing spread spectrum, DSL and direct microwave services to remote towns • Albury-Wodonga, with the Murray River Regional Telecommunications Company installing a combination of 802.16 data communications and 1xRTT CDMA mobile services. A second funding round will be conducted in late 2004. www.mmv.vic.gov.au/can 39

Outcome 6 6 Seamless Freight and Logistics System 40 DOI Annual Report 2003–04

Outcome 6 Seamless Freight and Logistics System

he Government’s freight and logistics vision is Key achievements to focus on improving utilisation of the existing freight network, improve planning for the Port reform implementation anticipated freight growth and providing a T In July 2002, the Government released and responded to supportive regulatory environment. Professor Bill Russell’s independent Review of Port Reform in In implementing this vision, the Government has substantially Victoria (completed December 2001), which reviewed the completed its port reform agenda, progressed the channel- port reforms carried out during the mid-1990s. In its deepening project and has created Melbourne Port@L to response to the report, the Government committed to five oversee coordinated development of the Melbourne port key directions and 22 implementation actions. precinct. The Government has also initiated reform of the As at 1 July 2004, implementation of these 22 directions rail access regime to encourage competitive third-party is nearing completion, with the majority of key actions access to the rail network. completed in 2003–04 and substantial progress made AusLink rail funding has been directed toward key network on the remainder. A prime focus under the Port Services projects including: Dynon Port Rail Link; increasing (Port of Melbourne Reform) Act 2003 was the creation standard-gauge network capacity through Tottenham; of a new entity to manage the Port of Melbourne – the and capacity enhancements on the north-east corridor. POMC – which came into effect on 1 July 2003. The POMC The terms of reference for a joint study into freight has a broader charter than its predecessor to sustainably improvements, including standardisation of the manage and develop the port. It also has integrated Mildura–Geelong corridor, have been agreed with the responsibility for both land and water management in the Commonwealth Government. port, functions which were split between different entities Access to the ports is being enhanced through the under previous arrangements. construction of an overpass of Cliff Street in Portland A second piece of port reform legislation, the Port Servcies and dual-gauge rail links to the Port of Geelong. Progress (Port Management Reform) Act 2003, was enacted in in the Geelong projects slowed as a result of differences of November 2003. This Act created a successor entity to viewpoint regarding scope and cost with Freight Australia. the Victorian Channels Authority (VCA) – the VRCA, created It is expected significant progress will be made in 2004–05, a new port corporation for the Port of Hastings, and also following the sale of Freight Australia to Pacific National. put in place a new requirement for all Victorian port Improved efficiency of the network is being promoted managers to develop and implement safety and environment through SmartFreight programs focusing on the increased management plans. The legislation requires the new use of technology and the streamlining of processes management plans to be in place and certified by an through a study of working hours along the supply chain. independent auditor by 1 July 2005. Work is also progressing on the preparation of the Victorian Port Strategic Framework, The Victorian Freight and Logistics Council (combining the which, along with the achievement of this further milestone, former Road, Rail and Sea Freight Councils) was established will represent the conclusion of all substantive elements of to enable industry to provide integrated and strategic the Government’s port reform agenda. advice to government on delivering an efficient and effective freight network. Melbourne Port@L Planning processes are being increasingly focused on the The Melbourne Port@L concept, emanating from the changing and growing needs of freight, recognising the Melbourne Freight Hub Masterplan and associated analysis need to protect access to freight places. of developments in overseas ports and freight logistics, The Government continues to work with a variety of was announced in October 2002. Commonwealth and industry bodies to harmonise regulations. The Melbourne Port@L is a long-term vision to transform Melbourne's port-related infrastructure into a ‘world-class’ terminal aimed at achieving a more competitive port and the sustainable management of rapid trade growth. Seamless Freight and Logistics System DOI Annual Report 2003–04 41

The announcement of the creation of a Board of with the new name released as part of an updated web Management in June 2004 to steer and oversee the site launch. development of the precinct is a definitive step in the vision’s evolution. The Board will drive operational connectivity, Channel deepening ensure integrated planning and development, develop a The Port of Melbourne is Australia’s leading container port. framework for the coordination of property activities and It is vital to the Victorian and national economy that the Port leverage private-sector investment. of Melbourne remains competitive. Like a number of ports The Board draws together the expertise of government around the world, the Port of Melbourne faces the challenge authorities with responsibilities for the Port, the Dynon of catering for increasing ship sizes and consequent draught Precint and the roads linked to it. requirements. If larger ships cannot enter the port, Victoria risks trade diversion to interstate ports and higher import and SmartFreight project export costs. The Government has given ‘in-principle’ support to the Channel Deepening project, subject to satisfying As part of the Innovation Statement, Victorians. Bright State and Commonwealth environmental processes, Ideas. Brilliant Futures, the Government has allocated demonstrated technical feasibility and a sound financing $4 million over four years toward a project to identify structure. and implement ICT-based solutions aimed at generating efficiency gains in and around the Port of Melbourne. Together with improving overall access to the Port of Melbourne, channel deepening is a key action outlined in A program of industry consultation and research has the April 2004 Economic Statement, Victoria: Leading the enabled the development of a detailed model of the Port Way. The Victorian Government undertook to introduce of Melbourne supply chain, identifying each business and legislation that would recognise the status of the project the wide range of technologies utilised. and, following environmental approvals, support the Port SmartFreight has also identified a number of opportunities of Melbourne channel-deepening project. for enhancing the efficiency of the Port of Melbourne Many aspects of the project were developed during 2003–04. supply chain using ICT-based strategies including: The Channel Deepening Environment Effects Statement was • the ‘triangulation’ of container movements (to prepared for public exhibition in July 2004. Further reduce inefficiencies related to the movement of examination of the relocation of services under the Yarra empty containers) River was progressed. The project is on schedule, with a • upgrading ICT capability and utilisation to enhance preferred dredging company selected. An alliance the travel and queuing-time information within the agreement between the company and the POMC was Port precinct finalised in early July and the final business case will continue to be revised as the dredging alliance progresses • establishing a container management system. and cost estimates are finalised. Industry consultation to prioritise the DOI action plan is currently under way. SmartFreight will soon be rebranded, 42 DOI Annual Report 2003–04

Victorian Regional Channels Authority The Port Services (Port of Melbourne Reform) Act 2003 established the new POMC on 1 July 2003. The POMC assumed full responsibility for the port waters and channels The Government has substantially completed of the Port of Melbourne on 3 November 2003. This included management of the shared section of the channels near the its port reform agenda, progressed the channel entrance to Port Phillip Bay, which is used by both Melbourne and Geelong-bound vessels. deepening project and initiated reform of the After the creation of the new POMC on 1 July 2003, the rail access regime. VCA continued to be responsible for managing the port waters and channels of the Port of Geelong. The Port Service (Port Management Reform) Act 2003 created a successor entity – the VRCA – to assume the remaining responsibilities of the VCA. The VRCA formally began operation on 1 April 2004. This new entity is responsible for holding and arranging for the management Port of Hastings of the shipping channels servicing the regional trading ports of Portland, Geelong and Hastings. In particular, it The potential for the development of the Port of Hastings is responsible for maintaining independent management was acknowledged by the Government in its July 2002 of the Geelong channels, consistent with the Government’s response to the Review of Port Reform in Victoria. commitment to the Geelong operators and users. Access The Port of Hastings is one of Victoria’s four commercial to, and pricing of, the shared channels at the entrance to trading ports, and has the strategic advantage of deep water Port Phillip Bay continue to be regulated by the ESC to ensure in the approaches to its berths. The Review of Port Reform in that no disadvantage to Geelong-bound vessels occurs. Victoria recognised that the Port of Hastings had significant potential for development as a major container port in the future, particularly as the growth capacity of the Port of Melbourne is progressively tested over the next 20–30 years. During 2003–04, legislation was passed to replace the Hastings Port (Holding) Corporation with a new corporation with a broader charter to plan proactively to reserve the option of significant future port development. Key tasks include ensuring that suitable land and access corridors are reserved and that appropriate business development opportunities are progressed in the short to medium term. In January 2004, the new POHC came into existence. The new board has moved to appoint the corporation's first chief executive officer to begin the process of mapping out a future direction for the Port of Hastings. The Government is mindful of the environmental sensitivities associated with any significant development at Hastings and will ensure that the port corporation is required to proceed sensitively in accordance with ‘triple-bottom-line’ principles. 43

Outcome 7 Secure and Sustainable Energy Supply 7 44 DOI Annual Report 2003–04

Outcome 7 Secure and Sustainable Energy Supply

nergy is vital to our economy and way of life. Energy – greenhouse policy The development and implementation of effective DOI, in partnership with DSE, has developed a proposed energy policies are therefore key priorities for the policy framework for reducing greenhouse emissions Victorian Government. E from stationary energy, while establishing certainty for The growth in demand for energy will create pressure to investment in new supplies through the Greenhouse seek out new electricity and gas supplies, as well as foster Challenge for Energy. opportunities for greater energy efficiency and demand The proposed policy framework was developed following management activities by end users. the release of a consultation paper in June 2003 that Investment in energy infrastructure and the provision of received more than 60 public submissions. In September energy services is now largely undertaken by the private 2003, 80 representatives from environmental groups, sector. However, government plays a critical role in ensuring energy generators, academia and local government attended continued investment in energy and that energy users can DOI’s Industry Roundtable to discuss the key issues of how benefit from increased competition. to balance energy needs with environmental imperatives. Importantly, as competition under the privatised The Roundtable was followed by a detailed economic, arrangements develops, government ensures that access social and environmental analysis of the policy options that to a safety net of consumer protections is maintained. included further stakeholder consultation. The outcomes The broad objectives of DOI in relation to a secure and of this process developed the proposed policy framework sustainable energy supply are to: to ultimately provide a firm foundation for investment in new low-emission energy supplies. • facilitate efficient investment in new energy supplies while reducing greenhouse gas emissions from energy DOI also played a key role in an inter-jurisdictional working supply and use group to develop a model for a national emissions trading scheme. In the absence of Commonwealth leadership on this • ensure adequate management of energy security risks issue, Victoria and other States and Territories progressed a and supply emergencies in light of recent terrorism national emissions trading model as a means of ensuring events and Victoria’s experience of supply disruptions that both the Australian and the Victorian economy are • further develop the electricity and gas markets to ensure well-positioned in a carbon-constrained future. they become increasingly competitive, efficient and national in their operation, and that Victorian energy Hazelwood Power Station – Greenhouse users receive the benefits of such reform reductions • provide disadvantaged energy users with adequate As a condition of altering its mining licence boundary, DOI consumer protection, given the essential nature of energy progressed negotiations with International Power to reduce the greenhouse intensity of the Hazelwood Power Station • address the dependence of many regional Victorians emissions. Consistent with the precedents set by the Brown on high-cost energy supplies, for example, through Coal Tender process, the negotiation focused on securing extensions of the natural gas network to regional towns substantial greenhouse gas emission reductions in return • ensure the safe production, supply and use of electricity for access to 92 million tonnes of new coal under and gas. International Power’s proposed West Field extension. DOI plays a central role in advising the Government on Energy market reform energy policy. Major contributions in relation to energy policy are also made by: The Victorian Government has been a leader in the debate for the development of a national energy market. National • DPI in facilitating the exploration and production of energy market reforms equate to strengthened competition, brown coal, oil and gas, including the regulation of greater efficiency and increased investment opportunities in these activities Australia’s energy market. • DIIRD in facilitating energy investments The reforms included the establishment of the Ministerial • DSE in advising on Greenhouse policy Council on Energy (MCE) as the sole governance body for • SEAV in promoting renewable energy and energy efficiency. the national energy market and the abolition of the National Electricity Market Ministers Forum. Secure and Sustainable Energy Supply DOI Annual Report 2003–04 45

The reforms will deliver more efficient and effective Minister for Energy regulation. A national regulator, the Australian Energy Industries and Resources, Regulator (AER), and a national rule-maker, the Australian Theo Theophanous at the Energy Market Commission (AEMC) have been established launch of AGC’s “Staying and will encompass distribution and retailing of gas and Connected” program for electricity from 2006. The AER will have its headquarters energy users, August 2003 in Melbourne. DOI has started the development of a national regulatory framework for distribution and retailing in consultation with MCE jurisdictions and key stakeholders. DOI has also played a significant role in securing in-principle agreement to establish a national transmission planning function in the National Electricity Market (NEM). DOI liaised closely with the ESC regarding the report and Gas market reform its recommendations and prepared comprehensive advice to be considered in early 2004–05 by the Minister for DOI has been an important participant in securing MCE Energy Industries and Resources. agreement to undertake a review of the institutional arrangements for the national gas market. The MCE Briquette shortage has agreed to accelerate the development of a reliable, competitive and secure natural gas market and related DOI, in consultation with other departments, successfully infrastructure needs. DOI is also a lead agent in developing co-ordinated the Government’s response regarding the national protocols for the effective management of gas loss of briquette production following the December 2003 supply emergencies. These projects were progressed in fire at Energy Brix. The company was the State’s sole producer 2003–4 and will be concluded in 2004–5. of briquettes. Briquettes were subsequently rationed during January and February 2004 to ensure supplies to critical DOI oversaw a review by VENCorp of Victoria’s gas spot customers such as hospitals were maintained. All other market. Its findings were reported in June 2004 and customers were assisted by government to convert to implementation by VENCorp has begun. alternative fuels during this time. The Government has also Consumer safety net assisted Energy Brix to restructure its operations to preserve jobs in the Latrobe Valley. DOI and the Minister for Energy Industries and Resources negotiated a landmark four-year agreement on standard Supply security electricity and gas prices with each incumbent retailer to DOI played a key role in coordinating an inter-jurisdictional deliver price certainty and real price reductions for consumers response to the loss of gas production as a result of a fire up to 2007. The price path agreement provides consumers at the Moomba gas plant in January 2004. The fire directly with low prices, and establishes a transparent benchmark affected gas supply to South Australia and New South Wales, against which competing retail offers can be assessed while but the supply shortfall was partially made up by gas sourced providing scope for competition to grow. in Victoria, raising potential short and medium-term supply Competition in energy retailing issues for Victoria. The response to the shortage demonstrated how the inter- To inform the Government on the effectiveness of retail connection of gas markets in south-eastern Australia has competition, and the coverage of the energy consumer safety improved both the security and flexibility of gas supply, but net, the Minister for Energy Industries and Resources directed has also drawn attention to the need for a national market, the ESC to undertake an investigation on the effectiveness regulatory and emergency response framework to prevent of retail competition in the gas and electricity market. and manage inter-jurisdictional supply contingencies. This The ESC’s report, released in June 2004, found that retail issue is currently being addressed by the MCE. competition was growing steadily and was effective for large sections of the market. However, the ESC also found that certain sections of the market were not being actively targeted by retailers and the benefits of competition were not being fully realised. 46 DOI Annual Report 2003–04

DOI plays a central role in advising the Government on energy policy.

Investment facilitation Powerline Relocation DOI facilitated: Public interest in placing overhead electricity wires underground for aesthetic and reliability reasons has continued • the sale of Loy Yang Power to GEAC, a consortium to grow. Developments in underground technology have of AGL, Tokyo Electric Power, the Commonwealth Bank provided reasonably priced options for relocating low- and others. Loy Yang’s previous owners had an voltage distribution powerlines underground. Although unsustainable debt burden making the sale of the plant the costs remain too high for widespread undergrounding essential to its efficient long-run operation. DOI facilitated of overhead powerlines, strategic undergrounding and the the sale by advising government to make the acquisition use of insulated overhead cables has delivered a noticeable exempt from State cross-ownership laws that would improvement in aesthetics and amenity. have impeded the sale, and by encouraging a mutually beneficial agreement between GEAC and government on DOI assists communities to enhance and preserve street- the liability for stamp duty. The sale confirms a high level scapes, environmental and cultural assets, by providing of confidence in Victoria's future economic growth and grants under the Powerline Relocation Scheme to partially will ensure a smooth transition to new ownership for fund the relocation of overhead powerlines. In 2003–04 Victoria's largest power station a total of 21 grants with a value of $2.8 million was made.

• the acquisition of easements over private land for the Road Management Act Basslink interconnector. This will ensure that the project remains on schedule for commissioning in November The Road Management Act 2004 was enacted in autumn 2005. The interconnector is expected to supply 600 MW 2004 and provides for the integrated management of roads of electricity to Victoria from Tasmania to meet summer and road reserves. DOI worked throughout 2003–04 to peak demand address issues of concern to gas and electricity companies relating to access to roads to install, repair and maintain • approvals and agreements for the Portland Wind Energy utility infrastructure. Changes were made to earlier proposals Project resulting in a Danish company Vestas establishing to ensure the Minister for Energy Industries and Resources a blade-manufacturing plant in Portland. The $270 and the gas and electricity companies would be involved in million wind energy project will generate enough power to the development of new codes of practice and regulations. supply 100,000 homes, earn Victoria potential export Also, compliance costs of the new regime are minimised, dollars of up to $100 million a year, create more than which is consistent with good road safety outcomes. Work 400 jobs in Portland and reduce greenhouse emissions is continuing on the codes and regulations that are due to by up to 700,000 tonnes a year. come into effect on 1 January 2005. Statutory appointments DOI oversees a number of statutory bodies that operate and regulate the energy markets, and plan Victoria’s electricity transmission system. The OCEI and the Director Gas Safety (DGS) regulate energy safety in the home and workplace. VENCorp manages the gas transmission system and spot market and plans the Victorian electricity transmission grid. DOI managed and provided advice to the Minister for Energy Industries and Resources on the appointment of an acting Chief Electrical Inspector to OCEI and five directors to the Board of VENCorp. Most recently, the Minister for Energy Industries and Resources appointed Ken Gardner as the new Chief Electrical Inspector. His appointment will be for a period of five years starting in September 2004. 47

Outcome 8 8 Organisational Capability Building 48 DOI Annual Report 2003–04

Outcome 8 Organisational Capability Building

uilding organisational capability is central to • development of specialised communications strategies and underlies the successful achievements of for policies and projects, plus specific media strategies all DOI’s outcome groups. targeting mainstream media and specialist, regional and B suburban press. This included communications strategies for the Partnerships Agreements, Regional Fast Rail Project, DOI is committed to achieving government objectives Spencer Street Station Redevelopment, Craigieburn Rail in relation to the provision and management of public Project, TPAMS, Vermont South Tramline Extension, Country infrastructure: specifically the negotiation and management Passenger Rail, TravelSmart, Gas Heater Rebate, Regional of commercial agreements that deliver benefits and value Telecommuni-cations Spend/Demand Reports for money to the community; managing large commercial issues; and dealing with major private-sector organisations. • support of PASS (Privatised Arrangement Support Systems) DOI’s initiatives to build organisational capability provide Bus and Asset Development systems, ensuring that indirect but vital support to a range of the Government’s all project time lines were met and systems operational Growing Victoria Together commitments, including: sound • support for the development of public transport projects financial management, growing and linking all of Victoria, through the acquisition of land and lease negotiations creating more jobs and thriving, innovative industries across to meet project programs, for example, Epping North Victoria, safe streets, homes and workplaces, building rail corridor and Vermont South tramline extension. cohesive communities and reducing inequalities. Key achievements for 2003–04 in the Organisational Improving corporate processes, systems Capability Building outcome are outlined below. and knowledge During 2003–04, a great deal of work was undertaken Key achievements across DOI to enhance, refine and maintain sound corporate systems and processes. Significant examples include: Strengthening DOI workforce capabilities • development of an IT strategy which has included DOI is committed to ensuring that it has the capability and extensive input from business units regarding their capacity to deliver the Government’s commitments. In current issues and emerging needs. The strategy is order to achieve this objective, in 2003–04 DOI: substantially completed and will form the basis for future • developed and began implementation of the DOI People priority information technology infrastructure and systems Strategy 2004–06 that focuses on building capability, • re-establishment of the DOI IT Steering Committee motivating people and improving management to reflect the new structure and functions of DOI • supported the implementation of the new Victorian • delivery of improved technical infrastructure to support Public Service (VPS) career structure. more reliable and effective online service delivery

Supporting DOI business priorities • transition of MMV into DOI's systems, including the integration of finance, human resource and public Corporate support activities for a broad range of business affairs functions priorities were provided during the year including: • improved project development and assessment processes • playing a leading role from a financial, legal and through DOI’s Project Review Committee (PRC) project management perspective in the rail refranchising negotiations, including managing the development • enhanced financial target reporting to senior management of the public-sector benchmark, finalisation of the legal and Ministers documents, developing and managing the project plan and • the establishment of a formal risk management function budget, overseeing the financial and legal due diligence for DOI to embed risk management into all of DOI's and contributing to the project oversight committee project development and management activities • establishment of the Business and Financial Analysis • implementation of environmental management systems Branch, which pulls together financial, project • system development and enhancements to support management, legal and allied skills to assist DOI Ministerial business, management of Freedom of agencies, projects and internal functions Information (FOI) requests and reporting Organisational Capability Building DOI Annual Report 2003–04 49

• deployment of a successful email Spam filter pilot. The The Planning Subcommittee was responsible for overseeing full implementation will lead to a reduction in lost time the production of the DOI Corporate Plan, KPI development spent dealing with unwanted and inappropriate email, and the preparation of associated divisional business plans. reduced legal exposure and staff protection from The Operational Reporting @ DOI system was commissioned offensive material to provide a central, interactive repository for information • extensive consultation and detailed analysis of DOI’s and data relating to the performance measures reported electronic document and records management issues in the State Budget Output Statements. and needs • establishment of an internal legal forum to share knowledge across DOI and achieve a common DOI is committed to achieving government understanding of legal issues objectives in relation to the provision and • successful introduction of improvements to the Cabinet and Legislation process and coordination management of public infrastructure. • significant improvement of DOI’s standard contract and tender documentation and tools enabling greater consistency and efficiency Shared services • implementation of an integrated suite of financial Considerable effort has been expended to encourage delegations, creating a new management regime opportunities to share DOI systems with other government with increased levels of financial authority, balanced agencies. Currently, DOI is providing corporate services, by enhanced accountability through formal certification including IT services, payroll, financial management, accom- of compliance modation and records management to the following agencies • implementation of the Government’s mandatory under a shared services arrangement (to varying degrees): Occupational Health & Safety (OH&S) criteria • DVC for contractors pre-qualified with the Construction •DSE Supplier Register • Spencer Street Station Authority • establishment of a direct link to VicTrack's property asset and leasing database providing online access to current • SEITA data •TTA • development of a property database to track relevant •DPI information on the acquisition, management, use and disposal of DOI real property. • Heritage Council. As a result, DOI is now positioned for better economies Planning and performance reporting of scale, expansion of existing services and leveraging shared DOI carried out an extensive review of its strategic objectives investment across a wider customer base, representing greater and performance measurement processes during 2003-04. value for money. This included reviewing DOI's Corporate Plan and improving the existing set of key performance indicators (KPIs) that cover the critical areas of the DOI portfolio. The revised corporate outcomes and KPIs are closely aligned with the Government's desired policy outcomes, such as those outlined in Growing Victoria Together. Considerable effort was applied to further develop KPIs that: • measure the important aspects of DOI's performance • are based on sound methodologies • use data that is robust and able to be measured on a consistent basis • are clear and comprehensible. 50 DOI Annual Report 2003–04

Summary of Financial Results

s at 30 June 2004 the portfolio comprises the The financial statements presented in this annual report following entities (and corporations established relate strictly to the operations of DOI, and include the under the Corporations Act) for which Ministers operations under the body corporate Secretary to DOI; A are responsible for tabling annual reports the VRS, a company wholly owned by DOI; and the Director (including audited financial statements): of Public Transport, an office established by section 8 of the Transport Act 1983. • DOI (including Victorian Rail Services Pty Ltd (VRS); and incorporating the Secretary to DOI, an independent body All other agencies and corporations within the portfolio corporate created under the Project Development and prepare their own annual reports (including audited Construction Management Act 1994. The body corporate financial statements) and report separately. activities include the functions of MPV). DOI-controlled operations – financial results • OCEI The operating deficit for the year was $346 million (2003 – • OGS deficit of $43.7 million) and principally relates to a number of • POHC (previously Hastings Port (Holdings) Corporation) one-off transactions emanating from the new public transport • POMC (previously Melbourne Port Corporation) arrangements that began on 18 April 2004 and write-down of various assets. • Public Transport Ticketing Body (TTA) The following table shows the financial results for DOI over • VicRoads the past six years and describes the key reasons for the move- • SEITA ments between the 2002–03 and 2003–04 financial years. • Spencer Street Station Authority • VENCorp • VicTrack (including Rolling Stock Holdings Pty Ltd) • VRCA (previously VCA) • VicUrban (merger of Docklands Authority and Urban and Regional Land Corporation) • V/Line Passenger Corporation (including V/Line Passenger Pty Ltd). Summary of Financial Results DOI Annual Report 2003–04 51

DOI financial results since 1998–99 Movement 2003 to 2004 $m 2004 $m 2003 $m 2002 $m 2001 $m 2000 $m 1999 $m

Operating revenue – appropriations 61.5 (a) 2,504.0 2,442.5 2,406.1 2,316.6 2,182.1 2,118.0 – other revenue 249.0 (b) 540.1 291.1 181.1 135.6 147.1 42.1 Total operating revenue 3,044.1 2,733.6 2,587.2 2,452.2 2,329.2 2,160.1 Operating expenses 612.9 (c) 3,390.2 2,777.3 2,531.9 2,377.4 2,222.7 2,151.1 Operating surplus (deficit) (d) (346.1) (43.7) 55.3 74.7 106.5 29.0 Total assets 82.8 (e) 1,028.7 945.9 927.0 439.2 287.4 150.9 Total liabilities 331.6 (f) 568.8 237.2 161.1 139.4 91.8 61.7 Net assets (249.7) (g) 459.9 708.7 765.9 299.8 195.6 89.2

Notes (a) Appropriations have increased in line with growth in service payments, treatments of one off expenditure items and the net carryover movement from 2002–03 to 2003–04. (b) The movement in other revenue of $249 million mainly relates to a gain on acquisition of rolling stock ($370 million) and the one off payment from NX of $135 million received in the 2002–03 year. (c) The movement in operating expenses of $613 million mainly relates to the transfer of re-acquired rolling stock (and associated tax liabilities) to VicTrack ($498 million) and recognition of employee entitlements of franchisees ($148 million). (d) The operating deficit of $346.1 million for 2003–04 mainly relates to a number of one-off transactions emanating from the new public transport arrangements and write-down of various assets. These are described in note (b) and (c) above. In 2002–03 the loss was related to ‘one-off’ items – at that time write-down of City Link assets previously recorded as an asset of DOI. (e) The increase in total assets of $83 million mainly relates to the increase in ‘receivables’ owing from the Victorian Government ($98 million); a reduction in cash held in trust and short-term deposits ($37 million); and an increase in work-in-progress assets ($23 million). (f) Total liabilities increased by $331 million, mainly due to the recognition of employee entitlements of franchisees ($148 million), provision for ‘OneLink’ payments ($25 million) and an increase in payables ($156 million). (g) Net assets remain strong with the reduction in 2003–04 primarily related to the increase in other provisions. 52 DOI Annual Report 2003–04 53

Financial Statements For the year ended 30 June 2004 54 Financial Statements

Contents

Accountable Officer’s and Chief Finance and Accounting Officer’s declaration 55 Auditor-General’s report 56 Statement of financial performance 57 Statement of financial position 58 Statement of cash flows 59 Notes to the financial statements 60

These financial statements cover the Department of Infrastructure, the Secretary to the Department of Infrastructure and the Victorian Rail Services Pty Ltd. The Department of Infrastructure is a government department of the State of Victoria. Its principal address is: Department of Infrastructure 80 Collins Street, Melbourne Victoria Australia 3000 A description of the nature of the Department’s operations and its principal activities is included in the Report of Operations For queries in relation to our financial statements, please call 9655 6666, or visit our web site: www.doi.vic.gov.au. DOI Annual Report 2003–04 55 56 Financial Statements DOI Annual Report 2003–04 57

Statement of financial performance for the year ended 30 June 2004

Notes 2004 2003 $’000 $’000

Revenue from ordinary activities Output appropriations 5,6 2,503,977 2,442,455 Special appropriations 5,6 56 - Other revenue and revenue from other parties 5 540,101 291,108

Total revenue 3,044,134 2,733,563

Expenses from ordinary activities Rail services 7 1,492,856 997,858 Road services 735,009 811,065 Bus services 469,205 448,584 Assets transferred to other agencies free of charge 8 448,401 77 Other expenses from ordinary activities 9 148,656 161,911 Employee benefits 10 54,618 61,015 Capital asset charge 11 12,351 20,867 Depreciation and amortisation expense 10 9,939 12,698 Value of assets written down /disposed of 12 19,231 259,116 Resources provided free of charge 13 - 4,081

Total expenses 3,390,266 2,777,272

Net result (346,132) (43,709)

Accumulated surplus transferred to contributed capital as part of machinery of government changes 22(b) - (412) Adjustment due to accounting standard change (AASB 1028) 22(b) - (317) Net (decrease) increase in asset revaluation reserve 22(c) 50,782 (7,646) Total revenues, expenses and revaluation adjustments recognised directly in equity 50,782 (8,375)

Total changes in equity other than those resulting from transactions with Victorian government in its capacity as owner 22(d) (295,350) (52,084)

The above statement of financial performance should be read in conjunction with the accompanying notes. 58 Financial Statements

Statement of financial position as at 30 June 2004

Notes 2004 2003 $’000 $’000

Current assets Cash assets 14 477,830 513,314 Receivables 15 295,165 198,351 Prepayments 775 722 Inventories 16 3,142 3,431

Total current assets 776,912 715,818

Non-current assets Receivables 15 12,594 14,248 Inventories 16 3,327 3,829 Infrastructure, property, plant and equipment 17 228,822 202,742 Intangible assets 18 7,067 9,283

Total non-current assets 251,810 230,102

Total assets 1,028,722 945,920

Current liabilities Payables 19 358,988 203,711 Loans and advances from Victorian General Government 15,300 - Provisions for employee benefits 20 6,137 6,089 Lease liabilities 48 -

Total current liabilities 380,473 209,800

Non-current liabilities Provisions for employee benefits 20 10,970 10,032 Other provisions 21 175,059 - Prepaid lease income 1,979 2,047 Lease liabilities 361 - Loans and advances from Victorian General Government - 15,300

Total non-current liabilities 188,369 27,379

Total liabilities 568,842 237,179

Net assets 459,880 708,741

Equity Contributed capital 1(v), 22(a) 554,557 508,068 Accumulated surplus/(defecit) 22(b) (198,389) 147,743 Asset revaluation reserve 22(c) 103,712 52,930

Total equity 459,880 708,741

The above statement of financial position should be read in conjunction with the accompanying notes. DOI Annual Report 2003–04 59

Statement of cash flows for the year ended 30 June 2004

Notes 2004 2003 $’000 $’000

Cash flows from operating activities Receipts from Victorian Government 2,450,888 2,403,341 Receipts from other entities 86,236 77,911 Payments to suppliers and employees (2,829,454) (2,571,861) Goods and Services Tax (GST) recovered from the ATO* 159,638 113,924 Goods and Services Tax paid to the ATO* (12,565) (15,498) Interest received 6,820 3,147 Other revenue 71,561 218,074 Capital asset charge (12,351) (20,867)

Net cash inflow (outflow) from operating activities 31 (79,227) 208,171

Cash flows from investing activities Payments for property, plant and equipment (including work in progress) (112,995) (9,459) Payments for land held for resale (3) - Payments for software (including work in progress) (3,280) (7,813) Advances received from clients/sponsor agencies 99,120 146,708 Disbursements to contractors/agencies (100,978) (135,021)

Net cash inflow (outflow) from investing activities (118,136) (5,585)

Cash flows from financing activities Proceeds of capital contribution from Victorian Government 490,337 211,882 Payments to acquire assets on behalf of VicTrack (326,087) (114,654) Payments of capital contribution to State Government (36,608) (48,300) Transfer from Public Transport Corporation 33,828 - Proceeds from borrowings 409 -

Net cash inflow (outflow) from financing activities (161,879) 48,928

Net increase (decrease) in cash held (35,484) 251,514 Cash at the beginning of the financial year 513,314 261,968 Transfer from MMV** -486 Transfer to DSE and DVC*** - (654)

Cash at the end of the financial year 14 477,830 513,314

* ATO- Australian Taxation Office ** MMV – Multimedia Victoria *** DSE – Department of Sustainability and Environment *** DVC – Department for Victorian Communities

The above statement of cash flows should be read in conjunction with the accompanying notes. 60 Financial Statements

Index for ‘Notes to the Financial Statements’

Note Page

1 Summary of significant accounting policies 61 2 Output groups of the Department 67 3 Restructuring of administrative arrangements 74 4 Major Projects Victoria 76 5 Revenue 77 6 Summary of compliance with annual parliamentary appropriations 78 7 Rail services 80 8 Assets transferred to other agencies free of charge 80 9 Other expenses from ordinary activities 80 10 Results from ordinary activities 81 11 Capital asset charge 81 12 Value of assets written down /disposed of 82 13 Resources provided free of charge 82 14 Cash assets 83 15 Receivables 83 16 Inventories 84 17 Infrastructure, property, plant and equipment 85 18 Intangible assets 87 19 Payables 87 20 Provisions 87 21 Other provisions 88 22 Equity and movements in equity 89 23 Financial instruments 90 24 Ministers and Accountable Officers 92 25 Remuneration of executives 93 26 Remuneration of auditors 93 27 Contingent liabilities 94 28 Contingent assets 96 29 Commitments for expenditure 97 30 Employee benefits 100 31 Reconciliation of the net result for the reporting period to net cash inflow from operating activities 101 32 Consolidation: Victorian Rail Services Pty Ltd 102 33 Administered items 103 34 Non-cash financing and investing activities 105 35 Impact of adopting AASB equivalents to IASB Standards 106 Notes to the financial statements for the year ended 30 June 2004 DOI Annual Report 2003–04 61

Note 1. Summary of significant accounting policies

This general-purpose financial report has been prepared Leases on the infrastructure and enhancements in accordance with the Financial Management Act 1994, continue under partnership arrangements. Australian Accounting Standards, Statements of Accounting In accordance with the contractual provisions Concepts and other authoritative pronouncements of the and government policy, works undertaken by the Australian Accounting Standards Board, and Urgent Issues private operators to enhance, modify or add to the Group Consensus Views. infrastructure, vests with the Director. The Department It is prepared in accordance with the historical cost of Treasury and Finance (DTF) has advised that whilst convention, except for certain assets and liabilities which, the Director maintains ownership of the infrastructure as noted, are at valuation. The accounting policies adopted, enhancement, all rail leasehold improvement and the classification and presentation of items, are consistent infrastructure assets created as a result of capital with those of the previous year, except where a change is grants and other subsidies paid to all franchisees required to comply with an Australian Accounting Standard are controlled and reported by VicTrack. or Urgent Issues Group Consensus View. (ii) Victorian Rail Services Pty Ltd (VRS) (a) Reporting entity In December 2002, National Express (NX) advised that The financial statements include all the controlled activities it would withdraw from its train and tram franchises of the Department of Infrastructure. effective from 23 December 2002. The Government appointed receivers and managers to the NX train The reporting entity includes: and tram franchises, in order to protect government (i) Director of Public Transport interests and to ensure continuation of services. The Director of Public Transport (‘the Director’) is The VRS was formed to assume most of the head an office established by section 8 of the Transport Act office corporate functions of NX Group Australia (NEGA). 1983 (‘the Act’). The Director’s powers and functions The sole shareholder of VRS is the Director of Public are set out in section 9 of the Act and include Transport. The financial statements of VRS as at 30 June responsibility for the general administration of the 2004 have been consolidated with the Department’s tram and train service contracts provided by private financial report. Refer to note 32. operators under franchise arrangements. The Director (iii) Secretary to the Department of Infrastructure is part of the Department. In accordance with approval received under the The Director, on behalf of the Crown, had entered Financial Management Act 1994, the Department’s into a number of franchise agreements with private annual report and financial statements incorporate operators for periods ranging from 10 to 15 years the ‘Secretary to the Department of Infrastructure’ as whereby the operation of Victoria’s tram and train a body corporate created under the Project Development services transferred from the State-owned rail and Construction Management Act 1994. The body corporations to those operators in August 1999. corporate activities include the functions performed Most of these arrangements were terminated on by Major Projects Victoria (MPV). All activities are 18 April 2004 and new partnership arrangements were reflected put in place. The new agreements are for a period of as controlled transactions except project development five years and include subsidies and other payments and construction management activities for sponsor to the operators over the life of the agreements. agencies, and where sales and subsequent proceeds Details regarding the commitments and franchisee are received in which case they are reflected as arrangements are referred to in notes 27, 28 and 29. administered transactions. (Refer note 4). V/Line Passenger rail services reverted to government (iv) Station Pier – Committee of Management control with a new franchise arrangement established for the period from 1 October 2003 to 29 October 2006 On 17 May 2001, a Committee of Management which is controlled by the Department was formed for the The country and metropolitan infrastructure networks management of the Station Pier area. The Committee’s existing at the time of the franchise agreements were functions include improving, maintaining control, and leased by the Victorian Rail Track Corporation (VicTrack) granting leases over the Station Pier land and buildings. to the Director, who has subleased the infrastructure The activities of the Committee are incorporated into to the operators for the duration of each franchise. the financial statements of the Department. 62 Notes to the financial statements for the year ended 30 June 2004

Administered resources • Public Safety – improve transport, marine and energy sector safety and reduce the incidence, severity and cost The Department administers but does not control certain of accidents and incidents resources on behalf of the Victorian Government. It is accountable for the transactions involving these • Secure and sustainable energy supply – provide policy administered resources, however it does not have the advice to deliver an affordable, efficient and safe energy discretion to deploy these resources for achievement supply to the State of the Department’s objectives. For these resources, • Seamless freight and logistics system – facilitate the the Department acts only on behalf of the Victorian development of an integrated and seamless freight and Government. Administered resources are accounted logistics system that enhances global competitiveness for using the accrual basis of accounting. and meets the needs of business Transactions and balances relating to these administered • Organisational capability building – build the resources are not recognised as departmental revenues, Department’s capability and capacity to deliver high- expenses, assets or liabilities and are disclosed in the quality and efficient services applicable output schedules (refer note 33). • Connected Victorians – deliver an innovative, accessible information and communication technology (ICT) Other administered activities on behalf of environment that shares the benefits of new technologies parties external to the Victorian Government across the entire community and drives economic growth. The Department has responsibility for transactions and The Department is predominantly funded by accrual-based balances relating to administered funds on behalf of third parliamentary appropriations for the provision of outputs. parties external to the Victorian Government. Revenues, expenses, assets and liabilities administered on behalf (c) Outputs of the Department of third parties are not recognised in these financial Information about the Department’s output groups, statements as they are administered on a fiduciary and the expenses, revenues, assets and liabilities which and custodial basis, and therefore not controlled by are reliably attributable to those output groups, is set out the Department (refer note 33). in the Output Groups Schedule (refer note 2). Information about expenses, revenues, assets and liabilities administered Non-current assets by the Department are provided in the schedule of All non-current assets controlled by the Department administered expenses and revenues and the schedule (including Crown land) are reported in the statement of administered assets and liabilities (refer note 33). of financial position. Non-current assets which the (d) Acquisitions of assets Department administers on behalf of the Victorian Government are reported as administered resources All acquisitions of assets are measured at the acquisition (refer note 33). date at the cost of acquisition. Cost of acquisition is the purchase consideration plus incidental costs directly (b) Objectives and funding attributable to the acquisition. The Department’s objectives for the period 1 July 2003 Assets acquired at no cost, or for nominal consideration, to 30 June 2004 were: are initially recognised at their fair value at the date of • Infrastructure delivery and management – deliver acquisition. cost effective investment in and management of, infrastructure development in Victoria • Rural and regional development – foster prosperous and sustainable rural and regional communities through the provision of essential transport, ICT and energy infrastructure • Access and mobility – deliver a transport system that provides people with the choice to participate in a range of activities to meet their changing needs Notes to the financial statements for the year ended 30 June 2004 DOI Annual Report 2003–04 63

(e) Revenue recognition (iv) Fines and fees All revenue received by the Department is generally As the Department does not gain control over assets required to be paid into the consolidated fund. arising from fines and fees no revenue is recognised. The Department collects these amounts on behalf of Revenue becomes controlled by the Department when it the Crown. Accordingly, the amounts are disclosed as is appropriated from the consolidated fund by the Victorian revenues in the schedule of administered revenues and Parliament and applied to the purposes defined under the expenses (refer note 33). relevant appropriations act. Additionally, the Department is permitted under section 29 of the Financial Management (v) Other revenue Act 1994 to have certain receipts annotated to the annual Revenue from other departments is recognised when it appropriation. The receipts which form part of a section is received. 29 agreement are received by the Department and paid into the consolidated fund as administered revenue (note All other amounts of revenue over which the 33). At that point, section 29 provides for an equivalent Department does not gain control are disclosed as amount to be added to the annual appropriation. Examples administered revenue in the schedule of administered of receipts which can form part of a section 29 agreement are revenues and expenses. Commonwealth specific purpose grants and the proceeds (f) Receivables from the sale of assets. All debtors are recognised at the amounts receivable as Amounts disclosed as revenue are, where applicable, net they are due for settlement at no more than 30 days from of returns, allowances and duties and taxes. Revenue is the date of recognition. recognised for each of the Department’s major activities as follows: Collectability of debtors is reviewed on an ongoing basis. Debts which are uncollectible are written off. A provision (i) Output revenue for doubtful debts is raised when some doubt as to Revenue from the outputs the Department provides collection exists. to government is recognised when those outputs (g) Inventories have been delivered and the relevant Minister has certified their delivery in accordance with specified Land for resale, stores, work in progress and finished goods performance criteria. are stated at the lower of cost and net realisable value. Cost includes expenditure incurred in acquiring the (ii) Public Transport Fund inventories and bringing them to their existing condition. All revenue received by the Director of Public Transport Net realisable value is determined on the basis of the is retained in the Public Transport Fund pursuant to Department’s normal selling return. Expenses associated section 11 of the Transport Act 1983. Transport related with marketing, selling and distribution are deducted to revenue, including bus and rail revenue, is recognised determine net realisable value. in the period to which it is received by the Department (refer note 5). Where service obligations overlap (h) Revaluations of non-current assets reporting periods, revenue is recognised in the Subsequent to the initial recognition as assets, non-current reporting period in which the service is delivered if it physical assets other than plant and equipment are is reciprocal. measured at fair value. Plant and equipment are measured (iii) Commonwealth grants at cost. Revaluations are made with sufficient regularity to ensure that the carrying amount of each asset does not Grants payable by the Commonwealth Government differ materially from its fair value at the reporting date. are recognised as administered revenue when the Revaluations are assessed annually and supplemented by Department gains control of the underlying assets on independent assessments, at least every three years. behalf of the state (refer note 33). Where grants are Revaluations are conducted in accordance with the DTF’s reciprocal, revenue is recognised when performance Policy Paper Revaluation of Non-Current Physical Assets occurs under the grant. Non-reciprocal grants are (refer note 17). recognised as revenue when the grant is received or receivable. Conditional grants may be reciprocal or non-reciprocal depending on the terms of the grant. 64 Notes to the financial statements for the year ended 30 June 2004

All classes of assets (except plant and equipment) are subject (j) Leasehold improvements to a progressive revaluation over the period commencing The cost of improvements to or on leasehold properties is from 1 July 2002 with a completion date of 30 June 2005. amortised over the unexpired period of the lease or the Revaluation increments are credited directly to the asset estimated useful life of the improvements to the Department, revaluation reserve, except where the increment reverses whichever is the shorter. Leasehold improvements of office a revaluation decrement, in respect of that class of asset, assets are amortised over 10 years. previously recognised as an expense in the net result. Where the exception applies, the increment is recognised (k) Leased non-current assets immediately as revenue in the net result. A distinction is made between finance leases which effectively Revaluation decrements are recognised immediately as transfer from the lessor to the lessee substantially all the risks expenses in the net result, except where a credit balance and benefits incident to ownership of leased non-current exists in the asset revaluation reserve in respect of the same assets, and operating leases under which the lessor class of assets, in which case, the decrements are debited effectively retains substantially all such risks and benefits. directly to the asset revaluation reserve. Operating lease payments are recognised in the statement Revaluation increments and decrements are offset against of financial performance in the periods in which they are one another within a class of non-current assets. incurred, as this represents the pattern of benefits derived from the leased assets. (i) Depreciation of non-current physical assets (l) Non-current assets constructed by Depreciation is calculated on a straight-line basis to the Department write off the net cost or revalued amount of each depreciable asset (excluding land) over its expected The cost of non-current assets constructed by the useful life to the Department. Estimates of remaining Department includes the cost of all materials used in useful lives are made on a regular basis for all assets, construction, direct labour on the project and an with annual reassessments for material items. The appropriate proportion of variable and fixed overhead. expected useful lives, which are unchanged from (m) Trade and other creditors (payables) 2002–03, are as follows: These amounts represent liabilities for goods and Asset category Expected useful services provided to the Department prior to the end of life (years) the financial year and which are unpaid. The amounts are Buildings 55 unsecured and are usually paid within 30 days of recognition.

Plant and equipment (n) Concession fees Furniture and fittings 3 to 15 With the transfer of responsibility for City Link to VicRoads, Computer equipment 3 Concession Fees which were previously reported in the Computer printers 4 Department’s administered note is now reported by VicRoads. Office machines 5 (Refer note 33.) Rolling stock 30 (o) Maintenance and repairs Infrastructure assets The costs of maintenance of infrastructure, property, plant Station Pier 30 to 50 and equipment are charged as expenses as incurred, except Road works 55 to 60 where they extend the original useful life of the relevant Bridges, structures and tunnels 90 to 115 asset to the Department, and where they relate to the Sound barriers 55 replacement of a component of an asset, in which case the Mechanical and electrical equipment 20 costs are capitalised and depreciated in accordance with Landscape and urban design 20 note 1(i). Other routine operating maintenance, repair costs and minor renewals are also charged as expenses Where items of infrastructure, plant and equipment have as incurred. separately identifiable components which are subject to regular replacement, those components are assigned useful lives distinct from the item of infrastructure assets and plant and equipment to which they relate. Notes to the financial statements for the year ended 30 June 2004 DOI Annual Report 2003–04 65

(p) Goods and services tax systems changes (iv) Employee benefit on-costs Revenues, expenses and assets are recognised net of GST Employee benefit on-costs, including payroll tax, are except where the amount of GST incurred is not recognised and included in employee benefit liabilities recoverable, in which case it is recognised as part of the and costs when the employee benefits to which they cost of acquisition of an asset or part of an item of relate are recognised as liabilities. expense. The net amount of GST recoverable from, or (r) Intangible assets payable to, the ATO is included as part of receivables or payables in the statement of financial position. The GST (i) Software component of a receipt or payment is recognised on a Costs associated with the acquisition or development gross basis and the amounts paid to and received from the of internal–use computer software are capitalised ATO are reflected in the statement of cash flows in where they exceed $500,000 (2003 – $50,000) and accordance with Accounting Standard AAS28 Statement of are amortised on a straight-line basis over the periods Cash Flows. of the expected benefit, which varies from three to five (q) Employee benefits years. This is a change in accounting policy to comply with FRD 4 Internal Use Computer Software Costs as (i) Wages, salaries and annual leave issued under the Financial Management Act 1994. FRD Liabilities for wages and salaries and, annual leave 4 requires internal-use software costs to be capitalised expected to be settled within 12 months of the where the amount is material, an amount which must reporting date are recognised in respect of employees’ be at least $500,000. The internal-use computer software services up to the reporting date and are measured as costs below $500,000 that were expensed under the the amounts expected to be paid when the liabilities new accounting policy for the current year is $176,000. are settled. Liabilities for non-accumulating sick leave (ii) Web site costs are recognised when the leave is taken and measured at the rates paid or payable. Costs in relation to web sites controlled by the Department are charged as expenses in the period in (ii) Long-service leave which they are incurred unless they relate to the The liability for long service leave expected to be settled acquisition of an asset, in which case they are within 12 months of the reporting date is recognised capitalised and amortised over their period of expected as a current liability in the provision for employee benefit. Generally, costs in relation to feasibility studies benefits and is measured in accordance with (i) above. during the planning phase of a web site, and ongoing The liability for long service leave expected to be settled costs of maintenance during the operating phase are more than 12 months from the reporting date is considered to be expenses. Costs incurred in building recognised in the provision for employee benefits and or enhancing a web site, to the extent that they measured as the present value of expected future represent probable future economic benefits controlled payments to be made in respect of services provided by by the Department that can be reliably measured, are employees up to the reporting date. Consideration is capitalised as an asset and amortised over the period given to expected future wage and salary levels, of the expected benefits which vary from three to experience of employee departures and periods of five years (2003 – three to five years). service. Expected future payments are discounted using (s) Cash interest rates on national Government guaranteed securities with terms to maturity that match, as closely For purposes of the statement of cash flows, cash includes as possible, the estimated future cash outflows. short-term deposits that are readily convertible to cash on hand and are subject to an insignificant risk of changes in (iii) Superannuation value, net of outstanding cheques yet to be presented by The amount charged to the statement of financial the Department’s suppliers and creditors (see note 14). performance in respect of superannuation represents the contributions made by the Department to the superannuation funds (refer note 30). 66 Notes to the financial statements for the year ended 30 June 2004

(t) Capital asset charge The capital asset charge is imposed by the DTF and represents the opportunity cost of capital invested in the non-current physical assets used in the provision of outputs. The charge is calculated on the carrying amount of non-current physical assets. (u) Resources provided and received free of charge or for nominal consideration Contributions of resources and resources provided free of charge are recognised at their fair value. Contributions in the form of services are only recognised when a fair value can be reliably determined and the services would have been purchased if not donated. (v) Contributed capital Consistent with UIG Abstract 38 Contributions by Owners made to Wholly-Owned Public Sector Entities and Financial Reporting Direction 2 Contributed Capital, as issued under the Financial Management Act 1994 appropriations for additions to net assets have been designated as contributed capital. Other transfers that are in the nature of contributions or distributions of capital have also been designated as contributed capital. (w) Rounding of amounts Amounts in the financial report have been rounded to the nearest thousand dollars, or in other cases, to the nearest dollar. Notes to the financial statements for the year ended 30 June 2004 DOI Annual Report 2003–04 67

Note 2. Output groups of the Department

A description of each output group undertaken by the Regional and rural transport services Department during the year ended 30 June 2004 and the These outputs involve the delivery of quality public Department objectives and Government outcomes to which transport services to regional and rural areas of Victoria these output groups relate are summarised as follows: through contractual arrangements with private operators. These services include intrastate and interstate rail services, Output groups route and school bus services. Contracts with private operators are managed to ensure that service provision is Infrastructure planning and policy in accordance with contractually agreed standards and that committed investment levels for rolling stock and new These outputs involve the planned delivery of transport buses are delivered. infrastructure and travel management strategies, port development strategies and energy policy services aimed at improving the economic and social capacity of Victoria. Regional and rural transport infrastructure Key elements include integrated transport planning in These outputs involve the development and maintenance regional, rural and metropolitan areas; developing a of regional and rural transport networks by implementing forward infrastructure investment strategy; travel demand major road projects, regional and rural rail projects and management initiatives such as the TravelSMART program; monitoring the quality of rail infrastructure as defined in initiatives to achieve the Government’s ports policy goals; the contracts with private operators. They facilitate the and the provision of energy policy advice to Government movement of goods and passengers in an efficient and to secure a safe, sustainable and cost-effective energy timely manner. supply to the State. Metropolitan transport services Information and communication technology These outputs involve the delivery of a quality public (ICT) and multimedia transport service to the metropolitan area through These outputs focus on a range of activities designed to contractual arrangements with private operators. These enhance Victoria’s strengths in the key areas of ICT. In services include rail, tram and routed buses. Contracts with addition to the strong policy and strategy development private operators are managed to ensure that service role, a number of strategic programs are being delivered provision is in accordance with contractually agreed in the areas of ICT infrastructure, industry and community standards and that the committed investment levels for development and eGovernment. These activities include the rolling stock and new buses are delivered. continued implementation of the Government’s agenda as outlined in the Growing Tomorrow’s Industries Today, Metropolitan transport infrastructure and public Regional Connections, and Putting People at the Centre development projects strategies. A priority will be finalising and implementing the Government’s policy on broadband. These outputs involve the development and maintenance of metropolitan road networks and implementation of Achievements relating to new investments facilitated and major civic and road projects, the management and delivery announced, and jobs derived from investments facilitated of major public construction and land development will be reported through the Investment Facilitation and projects, and the development of metropolitan rail and Attraction output of the Department of Industry, Innovation tram infrastructure as set out in the contracts with the and Regional Development (DIIRD). private operators. They deliver major parts of the transport network in the metropolitan area and are aimed at Ports and intermodal gateways facilitating the movement of goods and passengers in an These outputs involve initiatives to improve the efficiency, efficient, timely and safe manner to their destinations. accessibility and usability of the transport system by addressing the interfaces of different components of this multi-faceted system. They cover the connections between ports, rail and road transport and airports in metropolitan, regional and rural areas, and aim to maximise the use of existing transport infrastructure across the State. 68 Notes to the financial statements for the year ended 30 June 2004

Transport safety and accessibility Government outcomes These outputs involve safety initiatives for road, public 1 Growing and linking all of Victoria transport and waterway users. This is provided through the 2 Government that listens and leads application of performance based standards to regulate transport providers, and to reduce cost of regulations on 3 More jobs and thriving, innovative industries across business, while raising safety and access levels for the Victoria community through improved transport regulation, reform, 4 Promoting sustainable development education, environmental response strategies and 5 Building cohesive communities and reducing inequalities prevention programs. It includes services to improve accessibility and subsidised taxi travel for the disabled. 6 Sound financial management Departmental objectives (refer also note 1(b)) 7 Protecting the environment for future Victorians 1 Infrastructure delivery and management: deliver cost 8 Safe streets, homes and workplaces effective investment in, and management of, 9 Protecting the environment for future generations. infrastructure development in Victoria. 2 Rural and regional development: foster prosperous and sustainable rural and regional communities through the provision of essential transport, ICT and energy infrastructure. 3 Access and mobility: deliver a transport system that provides people with the choice to participate in a range of activities to meet their changing needs. 4 Public safety: improve transport, marine and energy sector safety and reduce the incidence, severity and cost of accidents and incidents. 5 Secure and sustainable energy supply: provide policy advice to deliver an affordable, efficient and safe energy supply to the State. 6 Seamless freight and logistics systems: facilitate the development of an integrated and seamless freight and logistics system that enhances global competitiveness and meets the needs of business. 7 Organisational capability building: build the Department’s capability and capacity to deliver high-quality and efficient services. 8 Connected Victorians: deliver an innovative, accessible information and communication technology environment that shares the benefits of new technologies across the entire community and drives economic growth. Notes to the financial statements for the year ended 30 June 2004 DOI Annual Report 2003–04 69

Note 2. Output groups of the Department (continued)

Output groups* Departmental objectives IPP ICT & M PIG RRTS RRTI MTS MTI & PDP TSA 1. Infrastructure delivery and management •••••••• 2. Rural and regional development •••••--- 3. Access and mobility • - •••• •• 4. Public safety • --••• •• 5. Secure and sustainable energy supply • ------6. Seamless freight and logistics systems • - • - • - • - 7. Organisational capability building •••••••• 8. Connected Victorians - • ------Government outcomes 1. Growing and linking all of Victoria •••••••• 2. Government that listens and leads •••••••• 3. More jobs and thriving, innovative industries across Victoria •••••••• 4. Promoting sustainable development • -- -• - • - 5. Building cohesive communities and reducing inequalities ••- ••• •• 6. Sound financial management •••••••• 7. Protecting the environment for future Victorians • ------8. Safe streets, homes and workplaces ---••• •• 9. Protecting the environment for future generations --•••• ••

* Output group legend IPP – Infrastructure Planning and Policy ICT and M – Information and Communication Technologies and Multimedia PIG – Ports and Intermodal Gateways RRTS – Regional and Rural Transport Services RRTI – Regional and Rural Transport Infrastructure MTS – Metropolitan Transport Services MTI and PDP – Metropolitan Transport Infrastructure and Public Development Projects TSA – Transport Safety and Accessibility 70 Notes to the financial statements for the year ended 30 June 2004

Note 2. Output groups of the Department (continued) Output groups schedule – controlled revenue and expenses for the year ended 30 June 2004

Infrastructure ICT and Ports and Regional and Regional and Planning and Multimedia Intermodal Rural Transport Rural Transport Policy Gateways Services Infrastructure 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Revenue from ordinary activities Output appropriations 13,327 16,442 43,980 18,324 26,447 50,499 360,223 284,577 258,707 411,470 Special appropriations ------Revenue from other parties 629 - 3,540 - - - 15,660 61,196 127 -

Total revenue 13,956 16,442 47,520 18,324 26,447 50,499 375,883 345,773 258,834 411,470

Expenses from ordinary activities Rail services - - - - 7,012 10,095 151,942 113,161 25,555 1,392 Road services ------258,747 279,998 Bus services - - - - 2,186 6,371 186,078 173,470 - 1 Assets transferred to other agencies free of charge - - - - 150 18 - - - 35 Other expenses from ordinary activities 8,786 10,265 23,588 9,127 11,067 16,850 13,625 10,394 3,695 3,708 Employee benefits 6,144 5,581 7,539 4,722 2,685 2,453 7,395 6,136 3,753 2,273 Capital asset charge 59 107 64 291 3,005 2,865 1,040 1,320 358 372 Depreciation and amortisation expense 224 188 288 129 718 840 1,165 1,015 2,586 3,980 Value of assets written down/disposed of 23 4 3 25 1,287 8 - 200 251 9 Resources provided free of charge - 2 - 2 - 854 - 93 - 1,620

Total expenses 15,236 16,147 31,482 14,296 28,110 40,354 361,245 305,789 294,945 293,388

Net result (1,280) 295 16,038 4,028 (1,663) 10,145 14,638 39,984 (36,111) 118,082

Accumulated surplus transferred to contributed Capital as part of machinery of government ------Adjustment due to Accounting Standard change (AASB 1028) ------Net (decrease) increase in asset revaluation reserve - - - - 2,929 - - - 3,878 - Total revenues, expenses and revaluation adjustments recognised directly in equity - - - - 2,929 - - - 3,878 -

Total changes in equity other than those resulting from transactions with Victorian Government in its capacity as owner (1,280) 295 16,038 4,028 1,266 10,145 14,638 39,984 (32,233) 118,082 Notes to the financial statements for the year ended 30 June 2004 DOI Annual Report 2003–04 71

Metro Metro Transport Balanced Planning Supporting Total Transport Transport Safety and and Environmental Local Services Infrastructure Accessibility Systems Government 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

1,266,455 1,020,050 354,459 375,583 180,379 229,397 - 12,026 - 24,087 2,503,977 2,442,455 56 ------56 - 515,383 227,434 3,250 2,478 1,512 - - - - - 540,101 291,108

1,781,894 1,247,484 357,709 378,061 181,891 229,397 - 12,026 - 24,087 3,044,134 2,733,563

1,295,120 870,313 7,974 1,445 5,253 1,452 - - - - 1,492,856 997,858 - - 370,195 365,574 106,067 162,889 - 786 - 1,818 735,009 811,065 280,766 268,685 - 16 175 41 - - - - 469,205448,584 448,177 - 74 24 ------448,401 77 22,195 19,580 6,519 3,820 59,181 60,192 - 7,330 - 20,645 148,656 161,911 8,926 14,663 5,551 5,581 12,625 8,597 - 9,255 - 1,754 54,618 61,015 2,433 3,416 5,101 11,826 291 431 - 220 - 19 12,351 20,867 2,504 2,797 952 1,371 1,502 1,448 - 866 - 64 9,939 12,698 - 1,634 17,550 257,172 117 35 - 24 - 5 19,231 259,116 - 294 - 1,179 - 32 - 4 - 1 - 4,081

2,060,121 1,181,382 413,916 648,008 185,211 235,117 - 18,485 - 24,306 3,390,266 2,777,272

(278,227) 66,102 (56,207) (269,947) (3,320) (5,720) - (6,459) - (219) (346,132) (43,709)

------(412) - - - (412)

------(260) - (57) - (317)

3,111 - 38,220 (7,068) 2,644 - - (473) - (105) 50,782 (7,646)

3,111 - 38,220(7,068) 2,644 - - (1,145) - (162) 50,782 (8,375)

(275,116) 66,102 (17,987) (277,015) (676) (5,720) - (7,604) - (381) (295,350) (52,084) 72 Notes to the financial statements for the year ended 30 June 2004

Note 2. Output groups of the Department (continued) Output groups schedule – controlled assets and liabilities for the year ended 30 June 2004

Current assets Cash assets 16 18 648 - 2,582 2,936 60,596 68,654 44,995 51,174 Receivables 849 567 47416,419 899600 35,87323,980 39,709 26,507 Prepayments 4 3 11 - 2 8 86 94 72 120 Inventories ------

Total current assets 869 588 1,133 16,419 3,483 3,544 96,555 92,728 84,776 77,801

Non-current assets Receivables 70 311 - - 154 374 1,464 2,057 2,267 1,977 Inventories ------Infrastructure, property 193 903 16,668 7,977 36,754 37,770 10,002 4,703 3,214 980 plant and equipment Intangible assets 8 9 22 29 4 181 167 1,246 191 246

Total non-current assets 271 1,223 16,690 8,006 36,912 38,325 11,633 8,006 5,672 3,203

Total assets 1,140 1,811 17,823 24,425 40,395 41,869 108,188 100,734 90,448 81,004

Current liabilities Payables 1,567 585 34 252 3,463 1,529 38,798 31,691 50,973 19,105 Loans and advances from Victorian General Government ------Provisions for employee benefits 479 27 684 591 240 59 627 657 798 864 Lease liabilities 4 - 4 - 4 - - - - -

Total current liabilities 2,050 612 722 843 3,707 1,588 39,425 32,348 51,771 19,969

Non-current liabilities Provisions for employee benefits 767 45 1,543 1,182 413 100 1,299 1,122 1,043 1,475 Other Provisions------Prepaid lease Income - 11 - - - 24 - 268 - 352 Lease liabilities 35 - 31 - 23 - - - - - Loans and advances from Victorian General Government ------

Total non-current liabilities 802 56 1,574 1,182 436 124 1,299 1,390 1,043 1,827

Total liabilities 2,852 668 2,296 2,025 4,143 1,712 40,724 33,738 52,814 21,796

Net assets (1,712) 1,143 15,527 22,400 36,252 40,157 67,464 66,996 37,634 59,208 Notes to the financial statements for the year ended 30 June 2004 DOI Annual Report 2003–04 73

241,765 274,176 126,901 115,989 327 367 - - - - 477,830 513,314 143,393 84,349 48,549 28,961 25,419 16,968 - - - - 295,165 198,351 408 319 128 100 64 78 - - - - 775 722 - - 3,142 3,431 ------3,142 3,431

385,566 358,844 178,720 148,481 25,810 17,413 - - - - 776,912 715,818

5,570 4,730 1,610 3,435 1,459 1,364 - - - - 12,594 14,248 - - 3,327 3,829 ------3,327 3,829 13,793 13,302 144,838 135,318 3,360 1,789 - - - - 228,822 202,742

1,696 3,392 211 660 4,768 3,520 - - - - 7,067 9,283

21,059 21,424 149,986 143,242 9,587 6,673 - - - - 251,810 230,102

406,625 380,268 328,706 291,723 35,397 24,086 - - - - 1,028,722 945,920

184,319 117,919 47,040 20,410 32,794 12,220 - - - - 358,988 203,711

- - 15,300 ------15,300 - 1,578 2,246 922 1,089 809 556 - - - - 6,137 6,089 17 - 7 - 12 - - - - - 48 -

185,914 120,165 63,269 21,499 33,615 12,776 - - - - 380,473 209,800

3,097 3,835 1,052 1,324 1,756 949 - - - - 10,970 10,032 175,059 ------175,059 - - 915 1,979 250 - 227 - - - - 1,979 2,047 125 - 56 - 91 - - - - - 361 -

- - - 15,300 ------15,300

178,281 4,750 3,087 16,874 1,847 1,176 - - - - 188,369 27,379

364,195 124,915 66,356 38,373 35,462 13,952 - - - - 568,842 237,179

42,430 255,353 262,350 253,350 (65) 10,134 - - - - 459,880 708,741 74 Notes to the financial statements for the year ended 30 June 2004

Note 3. Restructuring of administrative arrangements

(i) DOI as successor in law of the remaining assets and liabilities of the former Public Transport Corporation taken on at 1 July 2003 Movements into the Department

Treatment of net capital contribution received The following assets and liabilities were recognised by the Department from the former Public Transport Corporation at the date of transfer:

2004 $’000 $’000

Public Transport Corporation

Assets Cash 33,828 Receivables 331 Plant and equipment 17,850 52,009

Liabilities Payables (261) Provisions (3,013) (3,274)

Net capital contribution 48,735

(ii) Machinery of government changes effective from 1 January 2003 There were no machinery-of-government changes in the 2003-04 financial year. However, restructuring of administrative arrangements (also referred to as MOG changes) in the previous financial year are included in this note for comparative purposes. Net assets assumed by the Department as a result of the transfer of these outputs are recognised in the statement of financial position at the carrying amount of those assets in the transferor department’s statement of financial position immediately prior to transfer. The net asset transfers are treated as a contribution of capital by the Crown in compliance with the accounting requirements of Urgent Issues Group Abstract 38 Contributions by Owners Made to Wholly-Owned Public Sector Entities and Financial Reporting Direction No. 2 Contributed Capital. Where the transfer to and from the Department resulted in net liabilities, the relevant amount has been treated as an expense and revenue respectively in the Department’s statement of financial performance. Details of the net asset transfers and net capital contributions by the relevant transferor and transferee departments are provided in the tables under 3(a), 3(b), 3(c) and 3(d) below.

Output movements into the Department 3(a) Treatment of asset and liabilities received The following assets and liabilities were recognised by the Department from DSE at the date of transfer: 2003 Output – Energy Policy Services $’000 $’000

Assets Receivables 218

Liabilities Payables (13) Provisions (205) (218) Net capital contribution from the Crown - Notes to the financial statements for the year ended 30 June 2004 DOI Annual Report 2003–04 75

3(b) Net capital contributions from the Crown The following assets and liabilities were recognised by the Department from DIIRD at the date of transfer: 2003 Output – Information and Communication Technologies and Multimedia $’000 $’000

Assets Cash 486 Receivables 887 Buildings 22 Plant and equipment 312 Work in progress 2,566 4,273

Liabilities Provisions (856)

Net capital contribution from the Crown 3,417

Output movements out of the Department 3(c) Treatment of net liabilities relinquished The following assets and liabilities were transferred from the Department to the DVC: 2003 Output – Local Government Services $’000 $’000

Assets Cash on hand 1 Plant and equipment 152 153

Liabilities Payables (10) Provisions (692) (702) Net liabilities (treated as a revenue item) (549)

3(d) Net Capital Contributions to the Crown The following assets and liabilities were transferred from the Department to DSE: Output – Balanced Planning and Environmental Systems and part of Strategic Land Use and 2003 Infrastructure Planning $’000 $’000

Assets Cash and investments 654 Receivables 4,102 Land and buildings 31,045 Plant and equipment 1,185 Cultural and intangible assets 774 Work in progress 146 37,906

Liabilities Provisions (5,413)

Net capital contribution to the Crown 32,493 76 Notes to the financial statements for the year ended 30 June 2004

Note 4. Major Projects Victoria

Land sales The activities of Major Projects Victoria (MPV) include land sales from nominated property development projects, the proceeds from which are remitted directly into the consolidated fund and are disclosed as administered items in the Department’s financial statements (refer note 33 Administered Items). The level of settlements realised on these residential developments and land sales are slowly diminishing as these projects are approaching completion. Project development and construction management for sponsor agencies MPV, under delegated authority from the Secretary to the Department of Infrastructure manages the Government’s interest in delivering major projects, drawing on funds appropriated to sponsor agencies. Refer also note 1(a)(iii). Completed projects are transferred to the appropriate sponsor agency responsible for the asset occupancy and use. Capital works expenditure undertaken during the reporting period by MPV has been included in the statement of cash flows and in the sponsor agencies’ accounts as either completed works, or works in progress. While the statement of financial performance does not include the income or expenditure of sponsor agencies, the statement of financial position does reflect funds owing for project works and monies held on behalf of sponsor agencies. The following summary represents sponsor agencies where capital expenditures have been undertaken by MPV during the year.

Sponsor agency 2004 2003 $’000 $’000 Department of Premier and Cabinet (DPC) 27,926 66,870 Department of Human Services (DHS) 114,203 42,955 Department of Industry, Innovation and Regional Development (DIIRD) 33,125 11,778 Department of Primary Industries (DPI) 5,245 4,164 Department for Victorian Communities (DVC) 11,943 1,867 Other - 127

192,442 127,761 Notes to the financial statements for the year ended 30 June 2004 DOI Annual Report 2003–04 77

Note 5. Revenue

Renenue by source Notes Operating Non-operating 2004 2003 2004 2003 $’000 $’000 $’000 $’000

Revenue from government Output appropriations 6 2,503,977 2,442,455 - - Special appropriations 6 56 - - - 2,504,033 2,442,455 - -

Other revenue and revenue from other parties Gain on aquisition of rolling stock (a) 370,955 - - - Revenue from other departments 84,736 77,911 - - Transport related revenue 72,325 64,200 - - Other revenue 5,424 8,656 - - Payment from NX - 135,000 - - Assets received free of charge - 2,057 - - Interest - - 6,661 3,284 533,440 287,824 6,661 3,284

Total revenue 3,037,473 2,730,279 6,661 3,284

(a) As part of the new Public Transport franchise arrangement, the State acquired the existing rolling stock from the former M>Train and M>Tram business for $1. The fair value of the rolling stock has been determined as $256 million, the value of which the Department has recognised as a gain on acquisition. The State acquired existing rolling stock from Connex for $79 million that has a fair value of $193 million and which also contributed to the gain. 78 Notes to the financial statements for the year ended 30 June 2004

Note 6. Summary of compliance with annual parliamentary appropriations

(a) Summary of compliance with annual parliamentary appropriations The following table discloses the details of the various annual parliamentary appropriations received by the Department for the year. In accordance with accrual output-based management procedures ‘Provision for outputs’ and ‘Additions to net assets’ are disclosed as ‘controlled’ activities of the Department. Administered transactions are those that are undertaken on behalf of the State over which the Department has no control or discretion.

Appropriation Act Financial

Annual Payments from Section 3(2) Section 29 Section 30 appropriation advance to Treasurer $’000 $’000 $’000 $’000 $’000 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003

Controlled Provision for outputs 2,241,724 2,276,491 57,510 33,533 1,055 - 135,923 227,266 465 10,902 Additions to net assets 537,270 299,883 69,000 - - - - - (215) (10,902)

Administered Payments made on behalf of the State 49,003 16,720 38,750 8,000 - - - - (250) -

Total 2,827,997 2,593,094 165,260 41,533 1,055 - 135,923 227,266 - -

(b) Summary of compliance with special appropriations

Authority Purpose Appropriations applied 2004 2003 $'000 $'000 Section 213A (4) Refund passenger transport companies the administrative 56 - of the Transport Act 1983 costs associated with ticket infringements Notes to the financial statements for the year ended 30 June 2004 DOI Annual Report 2003–04 79

Management Act 1994 Administrative Arrangement Act Section 32 Section 35 Machinery–of– Total Parliamentary Appropriations Variance government Authority applied $’000 $’000 $’000 $’000 $’000 $’000 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003

86,745 36,994 39,093 3,420 - (7,790) 2,562,515 2,580,816 2,503,977 2,442,455 58,538 138,361 118,848 49,729 13,690 18,021 - 19,110 738,593 375,841 502,002 221,057 236,591 154,784

- - - - - (2,890) 87,503 21,830 87,500 21,526 3 304

205,593 86,723 52,783 21,441 - 8,430 3,388,611 2,978,487 3,093,479 2,685,038 295,132 293,449 80 Notes to the financial statements for the year ended 30 June 2004

Note 7. Rail services

Notes 2004 2003 $’000 $’000 Rail system operating and related payments (a) 928,856 476,958 Grants associated with the capital asset charge 11 564,000 501,000 Interim Operating Agreements payments (b) - 19,900

Total 1,492,856 997,858

(a) The increase in 2004 largely reflects one off transactions related to the termination of the 1999 franchise agreements and implementation of the 2004 new partnership arrangements for public transport. There was a one off $148 million expense and creation of a provision to recognise franchisee employee entitlements under the new arrangements, payments made to the Receivers of NX and expenses incurred during the renegotiation period, a grant expense of approximately $50 million to cover VicTrack’s tax liability after they take up existing rolling stock on the State’s behalf, and increased rolling stock lease payments $45 million on account of delivery into service of new trains and trams. (b) In December 2002, the Government signed Interim Operating Agreements with Connex Trains and Yarra Trams to enable them to manage and finance the businesses and to provide for an orderly and timely competitive tender of the metropolitan train and tram businesses.

Note 8. Assets transferred to other agencies free of charge

Notes 2004 2003 $’000 $’000 Transfer to VicTrack (a) 448,177 - Transfer to Spencer Street Station Authority 150 - Transfer to Southern and Eastern Integrated Transport Authority (SEITA) 65 - Transfer to VicRoads 9- Transfer to Melbourne Olympic Parks Trust -77

Total 448,401 77

(a) This value comprises the former M>Train, M>Tram and Connex rolling stock acquired by the State on termination of the 1999 franchise agreements. These assets are transferred to VicTrack at fair value who will hold these assets on behalf of the State whilst they are used by the new franchisees Connex and Yarra under the new partnership arrangements entered into on 18 April 2004.

Note 9. Other expenses from ordinary activities Notes 2004 2003 $’000 $’000 Multi purpose taxi program 40,485 42,417 Grants paid for community and social benefits 12,890 36,324 Administration and information technology 23,509 18,868 Insurance legal and internal audit fees 12,516 11,463 Grants to other agencies 14,517 11,000 Occupancy 9,386 8,293 Other 35,351 33,546 Finance costs 2-

Total other expenses from ordinary activities 148,656 161,911 Notes to the financial statements for the year ended 30 June 2004 DOI Annual Report 2003–04 81

Note 10. Results from ordinary activities

The net result for the reporting period includes the following specific net gains and expenses:

Note 2004 2003 Net gains and expenses $’000 $’000

Expenses Employee benefits Salary and wages 40,692 44,708 Superannuation (excluding salary sacrifice) 4,319 4,619 Annual leave and long-service leave expense 5,293 5,922 Other on-costs (fringe benefits tax, payroll tax and workcover levy) 4,314 5,766

Total employee benefits 54,618 61,015

Depreciation Buildings 56 106 Plant and equipment 3,325 3,231 Vehicles 700 - Infrastructure assets 736 4,521 Total depreciation 4,817 7,858

Amortisation Leasehold improvements 2,078 1,932 Intangible assets 3,035 2,908 Leased vehicles 9- Total amortisation 5,122 4,840

Total depreciation and amortisation 9,939 12,698 Value of assets written down/disposed of 12 19,231 259,116

Rental expense relating to operating leases 9,386 8,293

Note 11. Capital asset charge Capital asset charge is a cost levied by the DTF to reflect the ‘commercial’ cost to the Department if funding for capital purposes had to be borrowed rather than provided by the Government. For the 2003/04 financial year, the capital asset charge was 8 per cent of the net written-down value of assets (2002–03 year– 8 per cent). 82 Notes to the financial statements for the year ended 30 June 2004

Note 12. Value of assets written down/disposed of

2004 2003 $’000 $’000 Revaluation write down of Station Pier 1,287 - Land 1,437 - Other 376 5,649 City Link project assets written off: (a) Land under roads 16,107 46,225 Stateworks - 156,871 Bridges - 47,483 Surplus land - 2,888 Intangibles 24 -

Total 19,231 259,116

(a) Under sections 38 and 39 of the Melbourne City Link (Miscellaneous Amendments) Act 2000, the Melbourne City Link Authority (MCLA) was wound up on 28 February 2002. Sections 6A and 6B of the Melbourne City Link Act 1995 established the position of the Office of Director, Melbourne City Link and conferred on the Director the statutory functions to manage the City Link arrangements on behalf of the State. The transfer of all assets and liabilities from the former MCLA to the Office of Director, Melbourne City Link took place on 1 March 2002. The City Link assets created and acquired by the State, namely Stateworks and Bridges, is required to reflect Transurban’s ‘control’ of these assets as part of the City Link project in accordance with accounting standards. Further ‘land under roads’ is deemed to have a nil value under Accounting Standards and accordingly has been written off.

Note 13. Resources provided free of charge

2004 2003 $'000 $'000 Provided to Spencer Street Station Authority - 3,535 Provided to Heritage Council - 546

Total - 4,081 Notes to the financial statements for the year ended 30 June 2004 DOI Annual Report 2003–04 83

Note 14. Cash assets

2004 2003 $’000 $’000 Cash at bank and on hand 19,581 18,714 Short term deposits 50,433 77,404 Funds held in trust 407,816 417,196 477,830 513,314

The above figures are reconciled to cash at the end of the financial year as shown in the statement of cash flows as follows: Balances above 477,830 513,314 Balances as per statement of cash flows 477,830 513,314

Short-term deposits The deposits are bearing floating interest rates between 4 per cent and 5 per cent (2003 – 4 per cent and 5 per cent)

Note 15. Receivables 2004 2003 $’000 $’000

Current Amounts owing from Victorian Government 215,434 151,416 Other debtors 79,731 46,935 295,165 198,351

Non-current Amounts owing from Victorian Government 12,594 11,802 Other debtors - 2,446 12,594 14,248

Aggregate carrying amount of receivables Current 295,165 198,351 Non-current 12,594 14,248 307,759 212,599 84 Notes to the financial statements for the year ended 30 June 2004

Note 16. Inventories

2004 2003 $’000 $’000

Current Land inventory – at cost 3,142 3,431 3,142 3,431

Non-current Land inventory – at cost 3,327 3,829 3,327 3,829

Aggregate carrying amount of inventories Current 3,142 3,431 Non-current 3,327 3,829 6,469 7,260

The land inventory is owned by the body corporate, Secretary to the Department of Infrastructure. The body corporate activities include the functions performed by MPV. Refer note 1(a) (iii). Notes to the financial statements for the year ended 30 June 2004 DOI Annual Report 2003–04 85

Note 17. Infrastructure, property, plant and equipment

2004 2003 $’000 $’000

Land and buildings Land – at cost 3,162 1,700 Land – at independent valuation 2004 53,409 - Land – at independent valuation 2003 25,656 52,004 Land – at independent valuation 2002 36,485 39,885 Land – at independent valuation 2001 - 36,740 Land – at independent valuation 1999 - 5,050 118,712 135,379

Buildings – at cost 5,667 5,236 Buildings – at independent valuation 2004 3,627 - Buildings – at independent valuation 2001 - 2,875 Less: accumulated depreciation – at cost (3) - Less: accumulated depreciation – at valuation - (106) 9,291 8,005

Total land and buildings 128,003 143,384

Infrastructure Infrastructure – at cost - 4,622 Infrastructure – at independent valuation 2004 20,695 - Infrastructure – at independent valuation 2001 - 19,435 Less: accumulated depreciation – at cost - (52) Less: accumulated depreciation – at valuation - (1,287)

Total infrastructure 20,695 22,718

Plant and equipment Plant at cost 20,056 16,180 Less: accumulated depreciation (11,675) (8,885) 8,381 7,295 Leasehold improvement office assets – at cost 16,638 15,572 Less: accumulated amortisation (9,380) (7,436) 7,258 8,136

Vehicles – at cost 20,328 - Less: accumulated amortisation (709) - 19,619 -

Total plant and equipment 35,258 15,431

Work in progress (software and construction) Infrastructure and other assets 44,866 21,209

Total work in progress 44,866 21,209

Total net written-down value 228,822 202,742 86 Notes to the financial statements for the year ended 30 June 2004

Note 17. Infrastructure, property, plant and equipment (continued)

Valuations The basis of valuation of land, buildings and infrastructure is fair value, which is market value for land and buildings and depreciated replacement cost for infrastructure assets and is based on an independent assessment by the Valuer-General. Where an independent assessment by the Valuer-General has been used, the financial year in which the assessment was made is also disclosed. The approach in determining which items within the class are revalued in each reporting period is based on an assessment of the age of the asset and the date of the previous revaluation and keeping in line with the current DTF revaluation policy of revaluing at least every three years. Plant and equipment is valued at cost (also refer note 1(h)).

Reconciliation Reconciliations of the carry amounts of each class of infrastructure, property, plant, and equipment at the beginning and end of the current financial year are set out below.

Freehold Buildings Building Plant and Vehicles Infrastructure Work in Total land leasehold equipment assets progress* 2004 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Carrying amount at start of year 135,379 8,005 8,136 7,295 - 22,718 21,209 202,742 Additions 3,162 430 1,495 4,532 79,708 - 26,329 115,656 Disposals /write-offs (16,567) - (171) (29) - (1,287) (180) (18,234) Net additions through restructuring - - - 7 17,843 - - 17,850 Gain on aquisition of rolling stock - - - - 370,954 - - 370,954 Revaluation increments 49,871 912 - - - - - 50,783 Reallocation of WIP 2,089 - - - - - (2,089) - Depreciation/ amortisation expense - (56) (2,078) (3,325) (709) (736) - (6,904) Transfer to other agencies - - (125) (99) (448,177) - - (448,401) Transfer by way of Contributed Capital (55,222) ------(55,222) Transferred to intangible assets ------(403) (403) Carrying amount at end of year 118,712 9,291 7,258 8,381 19,619 20,695 44,866 228,822

* Includes software development and construction works in progress. Notes to the financial statements for the year ended 30 June 2004 DOI Annual Report 2003–04 87

Note 18. Intangible assets

2004 2003 $’000 $’000 Software 15,987 15,859 Less: accumulated amortisation (8,920) (6,576) 7,067 9,283

Note 19. Payables 2004 2003 $’000 $’000 Trade creditors and accruals 358,921 202,302 Unearned/Prepaid income 67 1,409 358,988 203,711

Note 20. Provisions 2004 2003 $’000 $’000

Current

Employee benefits Annual leave 3,556 3,332 Long-service leave 1,393 1,354 Accrued performance incentive 1,188 1,403 6,137 6,089

Non-current

Employee benefits Annual leave 1,576 1,421 Long-service leave 9,394 8,611 10,970 10,032

Aggregate carrying amount of provisions Current 6,137 6,089 Non-current 10,970 10,032 Employee benefits 17,107 16,121 88 Notes to the financial statements for the year ended 30 June 2004

Note 21. Other provisions

2004 2003 $’000 $’000 Provision for the employee entitlements of rail operators (a) 147,906 - Provision for ‘Onelink’ agreed claims (b) 25,218 - Provision for public liability claims (c) 1,935 - 175,059 -

(a) The State has agreed to assume responsibility for the employee entitlements of the employees of the Public Transport Operators as at 18 April 2004. (b) The Government has agreed to settlement for various claims in relation to the Transport Ticketing System owed by the ‘Onelink’ company. (c) As successor in law of the former Public Transport Corporation, the provision for public liability claims was transferred to the Department on 1 July 2003. This provision is for all active claims of public liability on public transport infrastructure owned by the former Public Transport Corporation, the former NX rail operator, the Department and for VicTrack where an indemnity has been provided by the Director of Public Transport. Notes to the financial statements for the year ended 30 June 2004 DOI Annual Report 2003–04 89

Note 22. Equity and movements in equity

2004 2003 $’000 $’000

(a) Contributed capital Balance at the beginning of the financial year 508,068 513,096 Accumulated surplus and reserves transferred to contributed capital as part of MOG changes - 990 Net capital contributed upon restructure (refer note 3) 48,735 (29,076) Capital contribution by Victorian Government (appropriation) (refer note 6) 502,002 221,057 Capital contribution by Victorian Government (other) - 200 Capital contribution to Victorian Government (other) (56,563) - Capital contributions to agencies within the Department’s portfolio * (447,685) (198,199)

Balance at the end of the financial year 554,557 508,068

(b) Accumulated surplus /(deficit) Balance at the beginning of the financial year 147,743 192,181 Accumulated surplus transferred to contributed capital as part of MOG changes - (412) Adjustment due to accounting standard change (AASB 1028) - (317) Adjusted opening balance at the beginning of the financial year 147,743 191,452 Net result (346,132) (43,709)

Balance at the end of the financial year (198,389) 147,743

Asset revaluation movements Balance at the beginning of the financial year 52,930 60,576 Asset revaluation reserve transferred to contributed capital as part of MOG - (578) Adjusted opening balance at the beginning of the financial year 52,930 59,998 Increment/(decrement) on revaluation of land 49,870 (7,068) Increment/(decrement) on revaluation of freehold buildings during the year 912 -

Balance at the end of the financial year 103,712 52,930

(d) Summary of equity Total equity at the beginning of the financial year 708,741 765,853 Net contributions of equity 46,489 (5,028) Total changes in equity recognised in the statement of financial performance (295,350) (52,084)

Total equity at the end of the financial year 459,880 708,741

* Capital contributions to agencies within the Infrastructure portfolio: Rail services (VicTrack) 327,491 149,899 Road services (SEITA) 49,269 - Road services (VicRoads) 34,022 48,300 Public Transport Ticketing Body 36,903 -

447,685 198,199 90 Notes to the financial statements for the year ended 30 June 2004

Note 23. Financial instruments

(a) Credit risk exposures The credit risks on financial assets of the Department which have been recognised in the statement of financial position is generally the carrying amount, net of any provisions for doubtful debts. (b) Interest rate risk exposures The Department’s exposure to interest rate risk and the effective weighted average interest rate by maturity periods is set out in the following table. For interest rates applicable to each class of asset or liability refer to individual notes to the financial statements. Exposures arise predominantly from assets bearing variable interest rates as the Department intends to hold fixed rate assets to maturity. (c) Interest rate risk exposures Fixed interest maturing in: 2004 Notes Floating 1 year Over 1 More than Non- Total interest rate or less to 5 years 5 years interest bearing Financial assets $'000 $'000 $'000 $'000 $'000 $'000 Cash asset 14 70,014 - - - 407,816 477,830 Receivables 15 - - - - 307,759 307,759

70,014 - - - 715,575 785,589

Weighted average interest rate 4.5% Financial liabilities Payables 19 - - - - 358,988 358,988 Lease liabilities 409 - - - - 409 409 - - - 358,988 359,397

Net financial assets 69,605 - - - 356,587 426,192

Fixed interest maturing in: 2003 Notes Floating 1 year Over 1 More than Non- Total interest rate or less to 5 years 5 years interest bearing Financial assets $'000 $'000 $'000 $'000 $'000 $'000 Cash assets 14 96,118 - - - 417,196* 513,314 Receivables 15 - - - - 212,599 212,599

96,118 - - - 629,795 725,913

Weighted average interest rate 4.5% Financial liabilities Payables 19 - - - - 203,711 203,711 203,711 203,711

Net financial assets 96,118 - - - 426,084 522,202

* Any interest earned on cash assets held by the DTF on behalf of the Department of Infrastructure is accounted for by the DTF. Notes to the financial statements for the year ended 30 June 2004 DOI Annual Report 2003–04 91

(d) Net fair value of financial assets and liabilities (i) On-statement of financial position The net fair value of cash and cash equivalents and non-interest bearing monetary financial assets and financial liabilities of the Department approximates their carrying amounts. The net fair value of other monetary financial assets and financial liabilities is based upon market prices where a market exists. The carrying amounts and net fair values of financial assets and liabilities at reporting date are:

2004 2003 Carrying amount Net fair value Carrying amount Net fair value $’000 $’000 $’000 $’000 On-statement of financial position Financial assets Cash assets 477,830 477,830 513,314 513,314 Receivables 307,759 307,759 212,599 212,599

785,589 785,589 725,913 725,913 Financial liabilities Payables 358,988 358,988 203,711 203,711 Lease liabilities 409 409 359,397 359,397 203,711 203,711

Net financial assets 426,192 426,192 522,202 522,202

(ii) Off-statement of financial position The Department has potential financial liabilities which may arise from certain contingencies disclosed in note 27. As explained in that note, contingent liabilities by definition are similar to a liability – the distinguishing feature being the uncertainty over the Government’s obligation. 92 Notes to the financial statements for the year ended 30 June 2004

Note 24. Ministers and Accountable Officers

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

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

Minister for Transport; and Minister for Major Projects The Hon. Peter Batchelor MP 1 July 2003 to 30 June 2004 Minister for Energy Industries and Resources The Hon. Theo Theophanous MLC 1 July 2003 to 30 June 2004

Minister for Information and Communication Technology The Hon. Marsha Thomson MLC 1 July 2003 to 30 June 2004

Accountable Officer

Mr. Howard Ronaldson Secretary, Department of Infrastructure 1 July 2003 to 30 June 2004

Remuneration Total remuneration received or receivable by the Accountable Officers (excluding Acting Accountable Officers whose remuneration is included in ‘Remuneration of Executives’ – see note 25, in connection with the management of the Department during the reporting period) was in the range: 2004 No. 2003 No. Income band Income band $300,000 – 309,999 1 $120,000 – 129,999 1 $140,000 – 149,999 1

Remuneration amounts relating to Ministers are reported in the financial statements of the DPC.

Other transactions (a) Other related transactions and loans requiring disclosure under the Directions of the Minister for Finance have been considered and there are no matters to report. (b) The Director of Public Transport is the sole shareholder on behalf of the State in the VRS (also refer to note 1(a)(ii) and Note 32). Notes to the financial statements for the year ended 30 June 2004 DOI Annual Report 2003–04 93

Note 25. Remuneration of executives

The numbers of executive officers, other than Ministers and Accountable Officers, and their total remuneration during the reporting period are shown in the first two columns in the table below in their relevant income bands. The base remuneration of executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, pay in lieu of leave payments, redundancy payments and retirement benefits. Executive officers were eligible for a pay increase under the biennial provisions of executive officer contracts. Increases, where applicable, were paid with effect from 28 January 2004. A number of executive officers retired, resigned or were retrenched throughout the year. This has had a significant impact on total remuneration figures due to the inclusion of annual leave, long service leave and retrenchment payments. Executive numbers in 2003 (in particular, the category of less than $100,000) reflects the movement of executives in and out of DOI in 2003 as a result of mog changes.

Income band Total remuneration Base remuneration 2004 2003 2004 2003 no. no. no. no. Less than $100,000 22 42 26 47 $100,000–109,999 3 5 8 3 $110,000–119,999 4 3 3 7 $120,000–129,999 4 9 7 12 $130,000–139,999 7 9 7 5 $140,000–149,999 8 6 7 5 $150,000–159,999 4 5 3 4 $160,000–169,999 5 4 3 2 $170,000–179,999 2 1 4 0 $180,000–189,999 7 0 3 1 $190,000–199,999 2 1 1 3 $200,000–209,999 1 0 4 3 $210,000–219,999 3 4 0 0 $220,000–229,999 1 2 1 0 $230,000–239,999 1 1 1 0 $240,000–249,999 1 0 0 1 $250,000–259,999 1 0 0 0 $260,000–269,999 1 0 0 0 $270,000–279,999 0 0 0 0 $280,000–289,999 0 0 0 0 $290,000–299,999 0 1 0 0 $310,000–319,999 1 0 0 0 Total numbers 78 93 78 93

Total amount $10,547,869 $10,506,694 $9,244,270 $9,680,228

Note 26. Remuneration of auditors

Audit fees paid or payable to the Victorian Auditor-General’s Office for audit of the Department’s financial report: 2004 2003 $’000 $’000 Paid as at 30 June 37 99 Payable as at 30 June 250 148

287 247 94 Notes to the financial statements for the year ended 30 June 2004

Note 27. Contingent liabilities

Contingent liabilities arise from guarantees, indemnities Commonwealth Games revenue guarantee payments and other forms of support provided by the Government The Director is obligated to make a top-up payment should, and from legal disputes and other claims against the as a result of the Commonwealth games, farebox fall below Government arising from a past event. Contingent a projected amount based on the prior period’s farebox liabilities by definition are similar to a liability – the and patronage growth. distinguishing feature being the uncertainty over the Government’s obligation. Commonwealth Games kilometre payment Former Public Transport Corporation lease The Director is obligated to make payment for additional service kilometres operated above the Master Timetable agreements Requirements in respect of the Commonwealth Games. Under various transport lease arrangements made by the former Public Transport Corporation, the State of Victoria New ticketing revenue guarantee payment indemnified the lessors against adverse tax rulings and Franchisees have an option to elect to permanently move third-party personal injury claims, where the third party is to a Revenue Guarantee Payment Regime should injured by the operation of the equipment during the implementation matters or new ticket fare structures period of the lease. The last of these lease arrangements associated with the introduction of the New Ticketing was terminated by June 1999. The normal statute of System cause a real reduction in the fare box. limitations is five years for tax claims and six years for The Revenue Guarantee Payment will be based on the prior personal injury claims. period’s farebox including an estimate for patronage Public transport rail franchise agreements growth and inflation. Under the above arrangement the Director is liable for the difference between actual farebox The Director of Public Transport, on behalf of the Crown, received and the guaranteed revenue amount. entered into new partnership contractual arrangements with franchisees to operate rail transport services in the New ticketing system start-up State operative from 18 April 2004. The following The State is obligated to pay any additional labour costs summarises the major contingent liabilities arising from associated with training and deployment of staff in relation those arrangements. to the establishment of the New Ticketing System.

Contingent liabilities arising during the Employee entitlements franchise period Franchisees are required to manage employee entitlements to agreed forecast amounts. There are a number of contingent liabilities arising from the New Partnership Agreements between the Director of The Director is obligated to make payments where the Public Transport and Connex and Yarra Trams which were Provision for Employee Entitlements (excluding Long Service signed on 19 February 2004. These possible liabilities refer Leave) is less than an agreed forecast amount; and actual to payments to be made by the Director of Public Transport Long Service Leave payments are greater than an agreed to Connex and Yarra Trams should certain events occur: forecast amount.

Operational performance regime (OPR) Access charge adjustment The OPR obligates the Director to make incentive payments Should the access charge regime for train rail access be for franchisees exceeding set punctuality and reliability reset, then the Director is obligated to make payment to performance targets. the franchisee in respect of any increased cost as a result of the reset. Special event payments The Director is also required to reimburse the franchisee’s The Director is obligated to make payments at a set rate reasonable costs incurred in renegotiating the access charges. for special event kilometres operated above a defined contractual limit. Regional Fast Rail

Farebox risk sharing The Director is required to meet the incremental costs incurred by Connex associated with the introduction of The Director is obligated to make payments should farebox Regional Fast Rail. receipts fall below defined thresholds. VicTrack and Spencer Street Station Service growth incentive Authority indemnity The Director is obligated to make payment for certain The Director indemnifies VicTrack and the Spencer Street additional services. Station Authority from any claim brought by the franchisees under the Infrastructure Lease. Notes to the financial statements for the year ended 30 June 2004 DOI Annual Report 2003–04 95

Capital projects Native Title In respect of any contract variation orders relating to The Director is liable for payments of any valid the commissioning of the new Nexus trains the Director compensation claim to Native Title holders made under is obligated to meet half the cost of any variation issued by any Native Title Law in respect of the land defined in Connex until the earlier of 300,000 kilometres or 31 August the infrastructure leases entered into with franchisees. 2004. In addition, the Director will meet one quarter of the cost of any variation order issued by Connex until the earlier Contingent liabilities arising from NX receivership of 400,000 kilometres or 31 October 2004. In December 2002, the Government appointed receivers and Unfunded superannuation managers to the NX train and tram franchises, in order to protect government interest, ensure continuation of services At the early termination or expiry of the contract the Director up to the commencement of new franchise arrangements will assume any unfunded superannuation amounts (apart and deal with any subsequent termination issues. from contributions the franchisee is required to pay over the contract term) to the extent that the State becomes the The Treasurer, under the Receivership Deed of Indemnity successor operator. has agreed to indemnify the receivers for debts properly incurred by them in the course of receivership. The Adjustment event Treasurer has also agreed to remunerate the receivers in The Director is obligated to increase the fixed monthly accordance with the rates set out in the deed. franchise sum as a result of any other defined Adjustment On 1 October 2003, V/Line Passenger Pty Ltd, a company Event occurring which has a fundamental impact. under a Deed of Company Arrangement, was purchased by V/Line Passenger Corporation, a statutory authority and has Contingent liabilities on early termination reverted to government ownership. or expiry of franchise agreement National Electricity Code Administrator (NECA) Franchise assets Under the NECA Members Agreement, dated 9 May 1996, To maintain continuity of services, the Director at early provides that the maximum amount payable by Victoria on termination or expiry of the franchise arrangements will: winding up of NECA is $1,285,000. Further, this amount is • for new rolling stock – either acquire the new rolling stock in addition to any amount payable under the memorandum at predetermined values or have the lease payment ob- of association under which NECA was established. ligations transferred to the Director or a successor franchise National Electricity Market Management • for franchise assets – either purchase the assets or have Company (NEMMCO) the assets transferred to the successor. Under the NEMMCO Members Agreement, date Contingent liabilities arising from potential 9 May 1996, provides that the maximum amount to changes to existing conditions be contributed by Victoria if NEMMCO is wound up is $5,233,050. Further, this amount is in addition to any Change in Victorian Law amount payable under the memorandum of association Franchisees may make a claim against the Director for any under which NEMMCO was established. net losses incurred as a result of a change in Victorian Law Details and estimates of other contingent which directly relates to the franchise business. liabilities are as follows: Latent defects 2004 2003 The Director is responsible for leased infrastructure defects $’000 $’000 above a threshold amount. Quantified Pre-existing contamination Legal disputes 3,200 6,468 Personal injury - 10 The Director is responsible for all costs associated with Equal opportunity - 250 pre-existing contamination clean-up. The Director also indemnifies the franchisee from and against all losses, 3,200 6,728 damages, actions suits, claims, demands, costs and Unquantified: expenses associated with pre-existing contamination. • One claim relates to a legal dispute that is yet to be quantified (2003 – two claims). • One claim relates to an equal opportunity case that is yet to be quantified (2003–nil claims). 96 Notes to the financial statements for the year ended 30 June 2004

Note 28. Contingent assets

Contingent assets arise from guarantees, indemnities and Adjustment event other forms of support provided to the Government and The Director is obligated to decrease the Fixed Monthly from legal disputes and other claims by the Government Franchise Sum as a result of a defined Adjustment Event arising from a past event. Contingent assets by definition occurring which has a fundamental impact. are similar to an asset – the distinguishing feature being the uncertainty over the Government’s entitlement. Contingent assets on early termination or expiry Public Transport Rail Franchise Agreements of the franchise agreement On 19 February 2004 the Director of Public Transport, on With respect to additional costs arising to the Director behalf of the Crown, entered into contractual arrangements on the early termination or expiry, the franchisee must with franchisees to operate rail transport services in the indemnify the Director for any losses, damages or costs State. The following summarises the major contingent incurred by him as a result of the termination. If the assets arising from those arrangements. franchisee does not do so, the Director has the right to draw on the franchisees’ performance bonds totalling Contingent assets arising during the $100 million for the amount of the losses, damages or costs. franchise period

Profit sharing The Director is entitled to receive payment from franchisees should franchisee profits exceed defined thresholds.

Operational performance regime The OPR entitles the Director to receive penalty payments for franchisees failing to meet set punctuality and reliability performance targets.

Special event payments The Director is entitled to receive payments at a set rate for special event kilometres short of a defined contractual limit.

Newport depot The annual franchise sum payable to Connex is to be reduced by the value of the Newport lease rental at the expiry or early surrender of the lease.

OneLink Service Contract The Director will be paid all compensation payments under the OneLink Service Contract for failure to meet all required performance standards.

Employee entitlements Franchisees are required to manage employee entitlements to agreed forecast amounts. The Director is entitled to receive payments where the Provision for Employee Entitlements (excluding long service leave) is greater than an agreed forecast amount; and actual long service leave payments are less than an agreed forecast amount. Notes to the financial statements for the year ended 30 June 2004 DOI Annual Report 2003–04 97

Note 29. Commitments for expenditure

The following commitments have not been recognised as liabilities in the financial statements. 2004 2003 $’000 $’000

Capital and other related commitments Commitments contracted for at the reporting date but not recognised as liabilities, payable: Within one year 501,748 483,468 Later than one year but not later than 5 years 94,188 175,471 Later than 5 years 1,200 - Capital commitments (inclusive of GST) 597,136 658,939 less: GST recoverable (54,285) (59,904) Capital commitments (exclusive of GST) 542,851 599,035

Included in the commitments above are projects undertaken by MPV for the following sponsor agencies (also see note 4): 2004 2003 $’000 $’000 Department of Human Services 92,356 167,771 Department of Premier and Cabinet 8,758 31,661 Department of Industry, Innovation and Regional Development 108,270 1,917 Department of Primary Industries 3,384 1,142 Department of Victorian Communities* 112,797 666 Infrastructure Portfolio 4,720 567 Melbourne and Olympic Parks Trust -5 Capital commitment (inclusive of GST) 330,285 203,729 Less: GST recoverable (30,026) (18,521) Capital commitments (exclusive of GST) 300,259 185,208

* Now includes Office of Commonwealth Games.

Rail and bus commitments. The Department has entered into a number of contracts with private operators to provide Victoria’s tram, train and bus services. Under the terms of these agreements, the Department provides subsidies for transport services and capital commitments. The estimates for rail and bus commitments have been calculated as at 30 June 2004 based on these existing contracts. A number of major issues exist in respect to the rail contracts that will significantly impact on existing contracts and commitments. These issues are discussed as follows:

New partnership arrangements. In February 2004 the Government announced new partnership arrangements to deliver the metropolitan tram and train system. The Government signed contracts with Yarra Trams to operate the total metropolitan tram network and Connex to operate the total metropolitan train network. The new partnership arrangements have reduced risk for the franchisees and also provide for greater State protection regarding franchise performance and obligations. In addition to the train and tram arrangements a new industry–wide body, Metlink, which is responsible for providing and overviewing network wide ticketing, marketing, information and complaints handling services commenced operations. Metlink mainly subsumes the functions of the Revenue Clearing House, VicTrip and the Melbourne Passenger Growth Initiative but also takes on additional responsibilities. 98 Notes to the financial statements for the year ended 30 June 2004

Note 29. Commitments for expenditure (continued)

The new partnership arrangements are effective from 18 April 2004 and operate for approximately a five year period to 30 November 2008. The State has an option to extend the Franchise Period for a period of no less than six months and ending no later than 31 May 2010. The franchise commitments have been calculated on the basis of the contract period up to 30 November 2008. V/Line Passenger rail services reverted to government control with a new franchise arrangement established for the period from 1 October 2003 to 29 October 2006. Rail and bus commitments 2004 2003 $’000 $’000 Non-discounted Non-discounted Commitments in relation to rail services contracted for at the reporting date but not recognised as liabilities, payable: Within one year 776,103 545,746 Later than one year but not later than 5 years 3,044,884 1,691,090 Later than 5 years 1,289,860 2,487,800 Rail commitments (inclusive of GST) 5,110,847 4,724,636 less: GST recoverable (464,623) (427,740) Rail commitments (exclusive of GST) 4,646,224 4,296,896

Representing Non-cancellable operating leases 4,646,224 4,296,896

A comparison of rail commitments between 2003 and 2004 cannot be made due to the significant changes made with the new partnership arrangements. The new partnership arrangements for Connex and Yarra Trams expire 30 November 2008 while the V/Line Passenger arrangement expires 29 October 2006. This compares with the previous franchise arrangement expiry dates for train of 29 August 2015, tram 29 August 2011 and V/Line Passenger 29 August 2009. The new partnership arrangements also incorporate additional service requirements and significant structural changes that impact funding responsibilities between franchisees and the Department. The major structural changes can be summarised as: • New metropolitan revenue sharing arrangements with revenue distributed 40 per cent to train and tram franchisees and 20 per cent to the Department for bus services. Previous franchise arrangements distributed revenue 57.4 per cent to train, 28.2 per cent to tram and 14.4 per cent to the Department for bus services. • Insurance responsibility for infrastructure, rolling stock and public liability has shifted from the franchisees to the Department. The train and tram franchisees now only carry responsibility for the insurance deductible with the Department responsible for insurance beyond the deductible. • Metlink has subsumed the functions of the Revenue Clearing House, VicTrip and the Melbourne Passenger Growth Initiative along with additional responsibilities. Funding for the Revenue Clearing House, VicTrip and the Melbourne Passenger Growth Initiative was the responsibility of train and tram franchisees and the Department on behalf of the bus industry. This included the responsibility for the funding of the Onelink Transit Services payment for the ticket and revenue collection arrangement. Funding of Metlink is now largely the responsibility of the Department with a much smaller funding contribution from the train and tram franchisees. The above rail commitments include the States’ obligation to fund the residual rolling stock lease payments beyond the franchise term and up to the lease period of 15 years. Also included in 2004 commitments is the commitment to five additional metropolitan train units. Notes to the financial statements for the year ended 30 June 2004 DOI Annual Report 2003–04 99

2004 2003 $’000 $’000 Non-discounted Non-discounted Commitments in relation to bus services contracted for at the reporting date but not recognised as liabilities, payable: Within one year 526,020 513,500 Later than one year but not later than 5 years 1,565,300 2,076,900 Later than 5 years 98,120 154,300 Commitments (inclusive of GST) 2,189,440 2,744,700 less: GST recoverable (199,040) (249,500) Bus commitments (exclusive of GST) 1,990,400 2,495,200 Representing: Non-cancellable operating leases 1,990,400 2,495,200

The reduction in commitments for bus service contracts reflects twelve months payments under existing contracts and changes to Revenue Clearing House and VicTrip arrangements for bus contracts, offset by the signing of new Nightrider bus service contract which will now expire 31 December 2007. 2004 2003 $’000 $’000

Operating leases Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows: Within one year 7,819 11,063 Later than one year but not later than 5 years 13,676 24,020 Later than 5 years -- Commitments (inclusive of GST) 21,495 35,083 less: GST recoverable (1,952) (3,085) Commitments (exclusive of GST) 19,543 31,998 Future minimum lease payments expected to be received in relation to non-cancellable sub-leases of operating leases 107 6,843

Outsourcing commitments Commitments under outsourcing contracts at the reporting date but not recognised as liabilities, payable: Within one year 933 973 Later than one year but not later than 5 years 207 964 Later than 5 years -- Commitments (inclusive of GST) 1,140 1,937 less: GST recoverable (104) (176) Commitments (exclusive of GST) 1,036 1,761 100 Notes to the financial statements for the year ended 30 June 2004

Note 30. Employee benefits

2004 2003 Employee entitlement liabilities $’000 $’000 Provision for employee benefits Current (note 20) 6,137 6,089 Non-current (note 20) 10,970 10,032 Aggregate employee entitlement liability 17,107 16,121

Employee numbers No. No. Number of employees at reporting date 816 748

As explained in note 1(q)(ii), the amounts for long-service leave are measured at their present values. The following assumptions were adopted in measuring present values: 2004 2003 Long-service leave Weighted average rates of increase in annual employee benefits to settlement of the liabilities 4.50% 4.75% Weighted average discount rates 5.24% 4.73% Weighted average terms to settlement of the liabilities 15 years 15 years

Government employees' superannuation funds No liability is recognised in the statement of financial position for the Department’s share of the State’s unfunded superannuation liability. The State’s unfunded superannuation liability has been reflected in the financial statements of the DTF. However, superannuation contributions for the reporting period are included as part of employee benefits in the statement of financial performance of the Department. The name and details of the major employee superannuation funds and contributions (including salary sacrifice contributions) made by the Department are as follows: Fund Contribution Contribution Contribution Contribution for the year for the year outstanding at outstanding at year end year end 2004 2003 2004 2003 $$ $ $ State Superannuation Scheme – revised and new 2,314,625 1,582,360 - 144,300 Victorian Superannuation Fund 4,057,235 4,313,626 - - Victorian Water Superannuation Fund 38,788 98,284 8,102 - Transport Superannuation Fund 401,698 276,553 24,491 - Various other 670,544 657,614 - 1,987

Total 7,482,890 6,928,437 32,593 146,287 Notes to the financial statements for the year ended 30 June 2004 DOI Annual Report 2003–04 101

The bases for contributions are determined by the various schemes. All employees of the Department who are members of government superannuation funds are entitled to benefits on retirement, disability or death. These funds provide defined lump–sum benefits based on years of service and final average salary. The above benefits are provided via either defined benefit schemes or accumulated fund schemes. The above amounts were measured as at 30 June of each year, or in the case of employer contributions they relate to payments made for years ended 30 June. There were no loans made by the superannuation funds to the Department during the year.

Note 31. Reconciliation of the net result for the reporting period to net cash inflow from operating activities 2004 2003 $’000 $’000

Net result for the reporting period (346,132) (43,709) Value of assets written down / disposed of 19,231 259,116 Gain on acquisition of rolling stock (370,955) - Depreciation and amortisation 9,939 12,698 Assets transferred to other agencies free of charge 448,401 (2,529) Change in operating assets and liabilities, net effects from restructuring: (Increase)/decrease in receivables and debtors (81,939) (56,354) Increase/(decrease) in payables and operating liabilities 101,702 36,178 Increase/(decrease) in other provisions 140,647 2,353 (Increase)/decrease in prepayments (53) 508 Increase/(decrease) in prepaid income (68) (90)

Net cash inflow/(outflow) from operating activities (79,227) 208,171 102 Notes to the financial statements for the year ended 30 June 2004

Note 32. Consolidation: Victorian Rail Services Pty Ltd (VRS) (Also refer to Note 1(a)(ii))

The VRS is a wholly–owned government company with the Director of Public Transport being the sole shareholder. In accordance with Accounting Standards the statement of financial performance, statement of financial position and cash flows of VRS (as follows, after eliminations) have been consolidated with DOI’s financial statements at 30 June 2004: 30 June 2004 30 June 2003 (after eliminations) (after eliminations) $$ $$

Assets Cash 925,040 752,336 Trade debtors 95,342 1,553,375 Other receivables - 358,481 Prepayments - 9,625 Unlisted equity – shares in companies (1) (1)

Total assets 1,020,381 2,673,816

Liabilities - Trade creditors 615 1,247,924 Payroll accruals - 313,561 Accruals 10,000 89,984 GST payable 9,766 22,347

Total liabilities 20,381 1,673,816

Net assets 1,000,000 1,000,000

Equity Accumulated surplus 1,000,000 -

Revenue Refunds and reimbursements 3,810,121 5,553,713 Interest received 43,838 9,619 Other 42,144 29,657

Total revenue 3,896,103 5,592,989

Expenses Computer and communications 2,781,413 2,294,002 Staff related costs 36,909 2,329,502 Property expenses 741,084 278,540 Superannuation 1,603 167,002 Insurance 169,748 10,915 Workers compensation 1,878 9,809 Redundancy - 71,001 Sales & marketing - 79,190 Grants - (1,000,000) Contractors 53,710 (10,000) Other 109,758 363,028

Total expenses 3,896,103 4,592,989

Net result for the period - 1,000,000 Notes to the financial statements for the year ended 30 June 2004 DOI Annual Report 2003–04 103

Note 33. Administered items

In addition to the specific departmental operations which are included in the statement of financial position, statement of financial performance and statement of cash flows, the Department administers or manages activities on behalf of the State. The transactions relating to these State activities are reported as administered in this note. Administered transactions give rise to revenues, expenses, assets and liabilities and are determined on an accrual basis. Administered revenues included taxes, fees and fines and the proceeds from the sale of administered surplus land and buildings. Administered liabilities include government expenses incurred but not yet paid. Administered assets include government revenues earned but not yet collected. The following provides brief details of Concession Fee Notes (see note 1(n)) referred to in the Administered tables below: Concession Fee Notes are received by the Department on behalf of the State from Transurban in consideration for Transurban’s obligation to pay concession fees. These Notes are accounted for in the manner normally applicable to such financial instruments, namely on a discounted basis to net present value as follows:

2004 2003 $’000 $’000 Face value of concession fee notes - 700,454 Less discount for future value - 542,663 Present value of concession fee notes receivable - 157,791

As a result of machinery of government changes, responsibility for the functions of the office of the Director, Melbourne City Link was transferred to VicRoads. Accordingly, VicRoads will now report the value of the concession notes in their financial statements for 2004. 104 Notes to the financial statements for the year ended 30 June 2004

Note 33. Administered items (continued)

Infrastructure Balanced Planning Supporting ICT and Ports and Planning and and Environmental Local Multimedia Intermodal Policy Systems Government Gateways 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Adminstered revenue Commonwealth grants - - - - - 171,819 - - - - Appropriations – payments made on behalf of the State 87,500 8,000 - - - 13,526 - - - - Concession fee increment ------Fees and other income 30 456 4,195 70,614 Revenue from disposal of assets Natural disaster funding 93 Interest income

Total operating revenue 87,530 8,000 - 456 - 185,438 - - 4,195 70,614

Administered expenses Assets transferred free of charge ------Commonwealth grants paid into the consolidated fund ------Payments made on behalf of the State 87,500 8,000 - - - 13,526 - - - - Asset sale proceeds and other income paid into the consolidated fund 30 - - 456 - - - - 4,195 70,614 Natural disaster expenditure - - - - - 93 - - - - Commonwealth grants on-passed to local government - - - - - 171,819 - - - -

Total operating expenditure 87,530 8,000 - 456 - 185,438 - - 4,195 70,614

Revenue less expenses ------

Administered assets Cash and receivables ------4,349 6,397 Concession fee notes receivables ------(see previous page)

Total assets ------4,349 6,397

Administered liabilities Creditors and accruals 50 - - - - - 71 - 4,349 6,397 Amounts owing to other departments ------Total liabilities 50 - - - - - 71 - 4,349 6,397 Notes to the financial statements for the year ended 30 June 2004 DOI Annual Report 2003–04 105

Regional and Regional and Metro Metro Transport Total Rural Transport Rural Transport Transport Transport Safety and Services Infrastructure Services Infrastructure Accessibility 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

- - 25,910 159,215 - - 94,792 45,423 11,026 17,721 131,728 394,178

------87,500 21,526 ------15,218 28,770 - - 15,218 28,770 - - - 7,361 - 232 18,873 2,021 1,601 13,839 91,544 - - - 3,469 - - 2,359 - - - 2,359 3,469 1,909 241 ------1,909 334 - - - - 225 83 - - - - 225 83

- - 27,819 162,925 7,586 83 112,601 93,066 13,047 19,322 252,778 539,904

------173,009 - - - 173,009 -

- - 25,910 159,215 - - 94,792 45,423 11,026 17,721 131,728 222,359 ------87,500 21,526

- - - 3,469 7,586 83 9,696 16,037 2,021 1,601 23,528 92,260 - - 1,909 241 ------1,909 334

------171,819

- - 27,819 162,925 7,586 83 277,497 61,460 13,047 19,322 417,674 508,298

------(164,896) 31,606 - - (164,896) 31,606

- - 1,909 - 4,339 10,399 14,368 19,284 - - 24,965 36,080 ------157,791 - - - 157,791

- - 1,909 - 4,339 10,399 14,368 177,075 - - 24,965 193,871

- - 438 - 6,578 12,467 2,339 - 83 - 13,908 18,864 - - 84,633 86,415 - - - - 84,633 86,415 - - 438 - 91,211 98,882 2,339 - 83 - 98,541 105,279

Note 34. Non-cash financing and investing activities

2004 2003 $’000 $’000 Restructuring of administrative arrangements (also refer note 3) 14,907 (28,358)

14,907 (28,358) 106 Notes to the financial statements for the year ended 30 June 2004

Note 35. Impact of adopting AASB equivalents to IASB Standards

The Department has commenced its transition from the (ii) Impairment of assets current Australian accounting standards to the Australian The new AASB 136 ‘Impairment of Assets’ will require equivalents to International Financial Reporting Standards all assets, other than inventories, financial assets and assets (IFRS). The Department has taken the following steps in arising from construction contracts, to be assessed for managing this transition: impairment at each reporting period. Where indicators • established a steering committee to oversee the of impairment exist, the carrying value of an asset will be transition and implementation of the Australian assessed to ensure that the carrying value does not exceed equivalents to IFRS its recoverable amount, which is the higher of its value-in- use and fair value less costs to sell. For the Department, • allocated internal resources and engaged expert value-in-use of an asset is its depreciated replacement cost. consultants to perform a gap analysis and impact Where the carrying value of an asset exceeds its recoverable assessment of the Department’s accounting policies amount, the difference will be recognised as an impairment and financial report requirements upon the adoption loss in the income statement unless the impairment loss of Australian equivalents to IFRS relates to a revalued asset, which will be accounted for as • given priority to the preparation of an opening balance a revaluation decrease. Impairment losses at transition date sheet that is in accordance with the AASB equivalents will be adjusted against the retained earnings. Reliable to IFRS as at 1 July 2004. This will form the basis estimation of the future financial effects of this change in for preparing the Department’s first full Australian accounting policy is impracticable as the conditions under equivalents to IFRS compliant financial report for which the impairment will be assessed are yet unknown the reporting period ending 30 June 2006. (iii) Intangible assets The Department has identified the following key areas where changes to its accounting policies, arising from The new standard requires a class of intangible assets to the adoption of the AASB equivalents to IFRS, may have be measured at a cost or revaluation basis subsequent to a material impact on its financial report. At this stage, their initial recognition, however, the revaluation basis can the Department has not been able to reliably quantify only be used where an active market exists for the asset. the impacts of these changes on the financial report. Intangible assets will also be subject to amortisation and impairment tests. (i) Valuation of property, plant and equipment Subsequent to the initial recognition as assets, the Department currently measures its non-current physical assets, other than plant, equipment and vehicles, at fair value in accordance with the DTF’s Policy Paper ‘Revaluation of Non-Current Physical Assets’. Plant, equipment and vehicles are measured at cost. Valuations are assessed annually and supplemented by independent assessments at least every three years. The new AASB 116 ‘Property, Plant and Equipment’ continues to permit a choice in measuring each class of property, plant and equipment either at cost or fair value. Property, plant and equipment measured at fair value will be required to be revalued at least every three to five years and all assets in a class must be revalued at the same time. The Victorian Government has not yet concluded whether it will change the current valuation basis, measurement methodology or frequency in which the revaluations are performed. The future financial effects of such changes in accounting policy are not yet known. 107

Appendixes 108 DOI Annual Report 2003–04

Output performance measures

As a result of machinery-of-government changes in late Footnotes 2002, there were a number of significant changes to DOI’s Footnotes are provided at the end of each output output structure. The main elements were: grouping to explain elements of measurement and major variances in performance against 2003–04 targets. Output groups removed Abbreviations used in tables Balanced Planning and Environmental System – transferred to DSE; Supporting Local Government – transferred to DVC. The abbreviations used in the tables are as follows: na not applicable Output group added nm new measure ICT and Multimedia – transferred from DIIRD. .. zero, or rounded to zero Output group to be renamed and described Strategic Land Use and Infrastructure Planning was renamed: Infrastructure Planning and Policy.

Outputs added/deleted Energy Policy Services was incorporated under the renamed Infrastructure Planning and Policy output group – this output transferred across from the former Department of Natural Resources and Environment. ICT Industry and Community Development and eGovernment Infrastruture and ICT Policy – two new outputs that incorporated measures from the previous four outputs reflecting the work of MMV – transferred from DIIRD. Regional Road Projects – a new output that replaced the former Major Regional Road Projects and Regional Arterial Road Projects outputs. This new output was developed in accordance with the recommendations of the 2002–03 Output Evaluation and Pricing Review into Major Regional Road Projects and Regional Arterial Road Projects. Output descriptions and corporate objectives Output performance measures, together with descriptions of output groups and outputs, are updated from year to year to improve clarity and reflect the changing nature of the DOI business. For the purpose of consistent performance reporting, the output measures published in the 2003-04 Budget Paper No. 3 form the basis of the data tables used in this Annual Report. Therefore, the wording in this Appendix that describes output groups and outputs has been largely retained as it was originally published in May 2003, and may contain references to corporate objectives or processes that have since been altered. In a small number of cases, such as the operation of public transport services, relevant descriptions have been updated to reflect major structural changes that occurred prior to 30 June 2004. Appendixes DOI Annual Report 2003–04 109

Infrastructure planning and policy

These outputs involve the planned delivery of transport infrastructure and travel management strategies, port development strategies and energy policy services aimed at improving the economic and social capacity of Victoria. Key elements include integrated transport planning in regional, rural and metropolitan areas; developing a forward infrastructure investment strategy; travel demand management initiatives such as the TravelSMART program; initiatives to achieve the Government’s ports policy goals; and the provision of energy policy advice to government to secure a safe, sustainable and cost-effective energy supply to the State. These outputs make a significant contribution to the achievement of the following departmental objectives: • infrastructure delivery and management: deliver cost-effective investment in, and management of, infrastructure development in Victoria • rural and regional development: foster prosperous and sustainable rural and regional communities through the provision of essential transport, ICT and energy infrastructure • access and mobility: deliver a transport system that provides people with the choice to participate in a range of activities to meet their changing needs • public safety and security: improve transport, marine and energy-sector safety and reduce the incidence, severity and cost of accidents and incidents • secure and sustainable energy supply: provide policy advice to deliver an affordable, efficient and safe energy supply to the State • seamless freight and logistics system: facilitate the development of an integrated and seamless freight and logistics system that enhances global competitiveness and meets the needs of business • organisational capability building: build DOI’s capability and capacity to deliver high-quality and efficient services. These objectives make a contribution to the achievement of the following government outcomes: • growing and linking all of Victoria • government that listens and leads • more jobs and thriving, innovative industries across Victoria • promoting sustainable development • building cohesive communities and reducing inequalities • sound financial management • protecting the environment for future Victorians. 110 Output Performance Measures

Major outputs/deliverables Performance measures Unit of measure 2003–04 target 2003–04 actual

Infrastructure strategies Produce strategies for regional, rural and metropolitan Victoria by working collaboratively across government with other development agencies and consultatively with the community to develop planning frameworks, infrastructure priorities and implementation processes.

Quantity Regional integrated transport studies commenced number 3 3 Integrated transport studies continuing number 4 4 Transport modelling: growth areas of Wyndham, Hume, Melton, Whittlesea and Casey/Cardinia – started number 2 2a

Quality Studies completed in accordance with agreed specifications per cent 100 100

Timeliness Integrated transport studies completed: Inner Western Strategy date Mar. 2004 nab Wyndham Growth Corridor Strategy date Mar. 2004 nac Northern Central City Corridor Strategy date Nov. 2003 Nov. 2003 Latrobe Valley Access and Mobility Strategy date Sept. 2003 Dec. 2003 Guidelines prepared on transport and urban planning date June 2004 nad

Cost Total output cost $ million 1.0 0.9

Travel management initiatives Review travel demand management and transport policies and practices to manage travel demands in urban and rural areas.

Quantity TravelSMART Demonstration Program implementation in schools, workplaces and communities number 12 12 Funding framework developed for infrastructure in growth areas number 1 1 Reducing barriers to Walking and Cycling to School Program – schools visited number 18 33e

Quality Participation rate in TravelSMART Demonstration Program: by target community per cent 50 50 by target schools and councils per cent 80 80

Timeliness Multi Agency Access and Mobility Project in rural and regional areas completed date Dec. 2003 Dec. 2003 Began preparation of funding framework for infrastructure in growth areas Date Mar. 2004 Mar. 2004

Cost Total output cost $ million 3.7 3.2 Appendixes DOI Annual Report 2003–04 111

Major outputs/deliverables Performance measures Unit of measure 2003–04 target 2003–04 actual

Port development strategies Develop, manage and monitor implementation of strategies and initiatives created to deliver the Government’s port policy goals. These services aim to improve the policy/regulatory framework for efficient and safe operation of ports and effective medium and long-term transport logistics. In addition, land-use planning ensures ongoing competitiveness of these critical trade gateways.

Quantity Port reform per cent complete 100 100 Channel deepening – detailed investigations per cent complete 90 90

Quality Projects completed against agreed plans and time frames per cent 100 100

Timeliness Channel deepening – detailed investigations progressed to agreed stage date Aug. 2003f Jun. 2004

Cost Total output cost $ million 2.0 2.2

Energy policy services Provision of policy advice to deliver government objectives for a secure and cost effective energy supply to the State.

Quantity Major strategic policy advice to government number 4 7g Strategic policy briefings to Portfolio Minister number 200 197 Exercise strategies for electricity and gas supply emergencies number 2 2 Powerline relocation grants approved number 20 22

Quality Compliance with criteria for approval of powerline relocation grants per cent 100 100

Timeliness Responses to Ministerial correspondence delivered within agreed timelines per cent 85 85 Key deliverables and projects managed on time – in line with planned and agreed project timetable per cent 95 95

Cost Total output cost $ million 6.8 8.9h

Source: Department of Infrastructure a Wyndham Growth Area Study began and was completed. Casey/Cardinia Growth Area Study started. The remaining two studies will begin in 2004–05. b The Inner Western Strategy has been delayed pending resolution on how to address major metropolitan road and rail capacity issues, which remain the subject of ongoing investigations. c The Wyndham Growth Corridor now forms part of the Wyndham Growth Area. A recommended plan is expected by the end of 2004. The study's timelines are set by DSE, which is leading the project. d An initial draft was prepared and is awaiting review and stakeholder consultation before further development. The target has been revised to 31 December 2004. e Additional human resources enabled the program team to visit more schools during the year than originally anticipated. f Due to an administrative error, the target that was published in the 2003–04 Budget Papers was incorrect. The correct target was June 2004, which was achieved. g Projects arose unexpectedly through the course of the year that required strategic briefings in addition to those that had been planned. Specifically, these covered the management of the briquette shortage following the Energy Brix fire, the management of a multi-state gas shortage following the Moomba gas plant explosion and fire, and the Government's response to AGL's proposed purchase of Loy Yang Power. h Largely reflects additional funding provided for the Briquette Emergency and the administration of the NTR scheme. 112 Output Performance Measures

ICT and multimedia

These outputs focus on a range of activities designed to enhance Victoria’s strengths in the key areas of ICT. In addition to the strong policy and strategy development role, a number of strategic programs are being delivered in the areas of ICT infrastructure, industry and community development and eGovernment. These activities include the continued implementation of the Government’s agenda as outlined in the Growing Tomorrow’s Industries Today, Regional Connections, and Putting People at the Centre strategies. A priority will be finalising and implementing the Government’s policy on broadband. Achievements relating to new investments facilitated and announced, and jobs derived from investments facilitated will be reported through the Investment Facilitation and Attraction output of DIIRD. These outputs make a significant contribution to the achievement of the following departmental objectives: • Connected Victoria: deliver an innovative, accessible information and communication technology environment that shares the benefits of new technologies across the entire community and drives economic growth • infrastructure delivery and management: deliver cost-effective investment in, and management of, infrastructure development in Victoria • rural and regional development: foster prosperous and sustainable rural and regional communities through the provision of essential transport, ICT and energy infrastructure • organisational capability building: build DOI’s capability and capacity to deliver high-quality and efficient services. These objectives make a contribution to the achievement of the following government outcomes: • growing and linking all of Victoria • more jobs and thriving, innovative industries across Victoria • building cohesive communities and reducing inequalities • sound financial management • government that listens and leads. Appendixes DOI Annual Report 2003–04 113

Major outputs/deliverables Performance measures Unit of measure 2003–04 target 2003–04 actual

ICT industry and community development Delivers policy advice and projects to grow a global ICT industry in Victoria and to promote the uptake of ICT across the economy. Also involves the development, contract management and monitoring of ICT community development projects designed to promote effective use of ICT in the community.

Quantity Minimum ICT community development projects under way or completed number 11 11 Investment projects under development number 25 26 Export development projects number 35 40a ICT skills projects under way or completed number 6 6 Projects under way or completed to increase business use of IT and electronic commerce number 8 8 Post implementation review completed number 1 1

Quality Assessment of quarterly monitoring reports for ICT community development grant agreements undertaken per cent 100 100

Timeliness Payments made according to contracts provided ICT community development grant recipients meet contract terms per cent 100 100

Cost Total output cost $ million 12.2 13.5 eGovernment infrastructure and ICT policy Delivers policy advice and projects in respect of eGovernment, government voice and data networks and Statewide ICT infrastructure and services. Quantity Whole-of-government ICT infrastructure services established and operated number 3 3 Regional ICT projects assessed number 6 7 Minimum regional access projects under way or completed number 5 8b Policy reviews conducted number 1 1 eGovernment telecommunications/data infrastructure projects under way or implemented number 8 8 eGovernment infrastructure policy reviews completed number 1 1 Quality Projects meet critical success factors per cent 90 100 Services operated as per service level agreements per cent 100 100 Timeliness Projects delivered in accordance with agreed plan tolerances per cent 90 100

Cost Total output cost $ million 31.3 18.0c

Source: Department of Infrastructure a Actual exceeded original target following a slight improvement within the ICT sector in comparison to previous years. b Actual exceeded original target following advance of funding for BIF related projects and a number of additional CAN trials being undertaken. c Largely reflects reduced Capital Appreciation Charge and depreciation. 114 Output Performance Measures

Ports and intermodal gateways

These outputs involve initiatives to improve the efficiency, accessibility and usability of the transport system by addressing the interfaces of different components of this multifaceted system. They cover the connections between ports, rail and road transport and airports in metropolitan, regional and rural areas, and aim to maximise the use of existing transport infrastructure across the State. These outputs make a significant contribution to the achievement of the following departmental objectives: • seamless freight and logistics system: facilitate the development of an integrated and seamless freight and logistics system that enhances global competitiveness and meets the needs of business • access and mobility: deliver a transport system that provides people with the choice to participate in a range of activities to meet their changing needs • infrastructure delivery and management: deliver cost-effective investment in, and management of, infrastructure development in Victoria • rural and regional development: foster prosperous and sustainable rural and regional communities through the provision of essential transport, ICT and energy infrastructure • organisational capability building: build DOI’s capability and capacity to deliver high-quality and efficient services. These objectives make a contribution to the achievement of the following government outcomes: • growing and linking all of Victoria • more jobs and thriving, innovative industries across Victoria • sound financial management • government that listens and leads • protecting the environment for future generations.

Major outputs/deliverables Performance measures Unit of measure 2003–04 target 2003–04 actual

Ports and intermodal freight Supply services to initiate, develop, manage and monitor a range of infrastructure strategies and projects designed to promote efficient, seamless transfers between road, rail and sea modes and to reduce costs to shippers.

Quantity Geelong Port Rail Access per cent 15 5a Masterplan implementation for Dynon Rail Precinct (Melbourne Port@L) per cent complete 25 25 Freight and Logistics Strategy completed per cent nab 70b

Quality Projects completed in accordance with agreed project specification per cent 100 100

Timeliness Projects completed within agreed time frames per cent 100 66c

Cost Total output cost $ million 2.6 3.7 Appendixes DOI Annual Report 2003–04 115

Major outputs/deliverables Performance measures Unit of measure 2003–04 target 2003–04 actual

Passenger interchange development Improve access to, and ease of use of, transport interchange facilities to encourage mobility and optimise use of the State’s transport infrastructure. This output is delivered by both government and private operators.

Quantity Cruise-ship visits number 30 24d Cruise-ship days in port number 32 30 Cruise-ship visitor dayse number 36,000 35,901 Redevelopment of Spencer Street Station (Partnership Victoria) per cent complete 60 50f Rural modal interchange upgrade program implementation per cent complete 100 100

Quality Projects completed against agreed plans and time frames per cent 100 95

Timeliness Redevelopment of Spencer Street Station: completion of necessary rail modifications date Mar. 2004 nag completion of Collins Street Concourse date Jun. 2004 nah

Cost Total output cost $ million 21.9 24.4

Source: Department of Infrastructure a Progress on the Geelong Port Rail Access project did not meet expected targets due to new Freight Australia track standards being introduced in January 2004. As a result, the project was delayed to enable a revised scope of works and costs to be prepared. It was then deferred pending the sale of Freight Australia to Pacific National Pty Ltd, and discussions are now under way with Pacific National Pty Ltd with the aim of reactivating the project. b Significant work was undertaken on initial development of the Freight and Logistics Strategy in 2002–03. During 2003–04, consultations within government and with key stakeholders led to the need to substantially rescope the document. Consequently, the expected outcome in terms of percentage completion was revised downwards. It is now anticipated that the rescoped strategy will be released for further consultation in 2004–05. c This result reflects the impact of delays outlined above. d Fewer ships arrived than anticipated, however six were new generation cruise ships with increased passenger capacity. Some ships also chose to stay longer in the port. As a result, the outcomes for cruise-ship days in port and visitor days remained close to target. e This measure reflects passenger numbers only. It does not count crew numbers, which are also substantial. f Late start of roof construction temporarily slowed progress. Extra resources are planned to still provide for completion in late 2005. g Revised construction methodology has led to staging of rail works in parallel with construction rather than completion of rail works prior to major construction. This measure is therefore no longer applicable. h This component of the project has been rescheduled as a result of the revised construction methodology. The Collins Street Concourse is now due to be completed in April 2005. 116 Output Performance Measures

Regional and rural transport services

These outputs involve the delivery of quality public transport services to regional and rural areas of Victoria through contractual arrangements with private operators and V/Line Passenger. These services include intrastate and interstate rail services, route and school bus services. Contracts with service providers are managed to ensure that service provision is in accordance with contractually agreed standards and that committed investment levels for rolling stock and new buses are delivered. These outputs make a significant contribution to the achievement of the following departmental objectives: • rural and regional development: foster prosperous and sustainable rural and regional communities through the provision of essential transport, ICT and energy infrastructure • access and mobility: deliver a transport system that provides people with the choice to participate in a range of activities to meet their changing needs • public safety: improve transport, marine and energy-sector safety and reduce the incidence, severity and cost of accidents and incidents • infrastructure delivery and management: deliver cost-effective investment in, and management of, infrastructure development in Victoria. These objectives make a contribution to the achievement of the following government outcomes: • growing and linking all of Victoria • more jobs and thriving, innovative industries across Victoria • safe streets, homes and workplaces • building cohesive communities and reducing inequalities • sound financial management • government that listens and leads • protecting the environment for future generations. Appendixes DOI Annual Report 2003–04 117

Major outputs/deliverables Performance measures Unit of measure 2003–04 target 2003–04 actual

Country/Interstate rail services Manage contractual arrangements with private operators and V/Line for the provision of quality rail passenger and associated road coach services to regional and rural areas of Victoria. Contractual performance standards are reflected in the performance measures for the delivery of the output.

Quantity Total kilometres timetabled million 11.3 11.3 Services delivered per cent 99.7 99.4 Maintain freight gates for the provision of general freight and charity services number of locations 28 28

Quality Passengers carried million 7.7 7.4a Customer satisfaction indexb score 76 75.4 Rolling stock plans provided and agreed per cent 100 100 Claims against total general freight consignments per cent 0.3 0.3

Timeliness Services arriving at destination no more than 59 seconds before and less than 5 minutes 59 seconds after timetable per cent 91.5 91.5

Cost Total output cost $ million 133.9 162.0c

Country bus services Manage the contractual arrangements with private operators for the delivery of bus services in accordance with the contractual service standards and provide air conditioning on bus replacements.

Quantity Total km timetabled million 17.3 17.3 Timetabled bus services delivered per cent 99 99

Quality Passengers carried million 11.7 11.1d Air conditioned buses in service per cent 22 25.5

Timeliness Services within 5 minutes of timetable per cent 99 99

Cost Total output cost $ million 50.8 50.9 118 Output Performance Measures

Major outputs/deliverables Performance measures Unit of measure 2003–04 target 2003–04 actual

School bus services Manage the contractual arrangements with private operators for the delivery of bus services in accordance with the contract service standards and implement approved initiatives for School Bus Services including air conditioning on bus replacements.

Quantity Km scheduled million 33.4 33.4 Timetabled bus services delivered per cent 99 99

Quality Air-conditioned school buses in service per cent 25.5 29.2 School bus safety program delivered - interchange upgrade per cent 100 100

Timeliness Services within 5 minutes of timetable per cent 99 99

Cost Total output cost $ million 149.3 147.6

Source: Department of Infrastructure a This figure reflects the short term patronage impacts of the disruption to existing rail services by track works being carried on the Regional Fast Rail project. b The Director of Public Transport commisions monthly surveys of both users and non-users of public transport to measure satisfaction with services. c Largely reflects the new funding arrangements for V/Line Passenger Services. d The 2003–04 target was based on a preliminary patronage estimate for 2002–03 which proved inappropriate. However, actual patronage in 2003–04 was 200,000 higher than in 2002–03. Appendixes DOI Annual Report 2003–04 119

Regional and rural transport infrastructure

These outputs involve the development and maintenance of regional and rural transport networks by implementing major road projects, regional and rural rail projects and monitoring the quality of rail infrastructure as defined in the contracts with private operators and V/Line. They facilitate the movement of goods and passengers in an efficient and timely manner. These outputs make a significant contribution to the achievement of the following departmental objectives: • infrastructure delivery and management: deliver cost effective investment in, and management of, infrastructure development in Victoria • public safety and security: improve transport, marine and energy sector safety and reduce the incidence, severity and cost of accidents and incidents • rural and regional development: foster prosperous and sustainable rural and regional communities through the provision of essential transport, ICT and energy infrastructure • seamless freight and logistics system: facilitate the development of an integrated and seamless freight and logistics system that enhances global competitiveness and meets the needs of business • access and mobility: deliver a transport system that provides people with the choice to participate in a range of activities to meet their changing needs • organisational capability building: build the DOI’s capability and capacity to deliver high-quality and efficient services. These objectives make a contribution to the achievement of the following government outcomes: • growing and linking all of Victoria • sound financial management • safe streets, homes and workplaces • more jobs and thriving, innovative industries across Victoria • promoting sustainable development • building cohesive communities and reducing inequalities • government the listens and leads • protecting the environment for future generations. 120 Output Performance Measures

Major outputs/deliverables Performance measures Unit of measure 2003–04 target 2003–04 actual

Regional public transport passenger and freight development Ensure delivery of the Government’s commitment to regional and rural transport infrastructure development and monitor the quality of rail infrastructure as set out in the contracts with the private operators and V/Line.

Quantity Projects continuing in 2003–04: Wodonga Rail Bypass number 1 1 Rail gauge standardisation number 1 1 Regional Fast Rail projects: Ballarat per cent complete 65 75a Geelong per cent complete 80 80a Latrobe per cent complete 95 75a Bendigo per cent complete 70 52a Country passenger rail services reintroduction project per cent complete 50 49b

Quality Ensure that Freight Australia measures Track Ride Quality Index (passenger lines only) number of times per year 4 4 Ensure that Freight Australia meets Ride Quality specification on all passenger lines per cent compliance 100 100c

Timeliness Projects provided within agreed budget and time frames (where government funded) per cent 100 100

Cost Total output cost $ million 40.0 31.8 Appendixes DOI Annual Report 2003–04 121

Major outputs/deliverables Performance measures Unit of measure 2003–04 target 2003–04 actual

Regional road projects Reduce travel time, lower transport operating costs, and upgrade the quality of roads with respect to safety and increased access through improved road transport links. Complete major road projects to regional centres, add new roads and paving, strengthen bridges, intersection improvements and road alignment, complete regional arterial road projects and improve road transport links to regional and rural centres.

Quantity Road assistance grants announced number 24 23d Major projects/road improvements: In progress number 4 4 Completed number .. .. Commenced number 2 2 Other road improvement/road construction projects: In progress number 2 2 Completed number 28 18e Commenced number 23 14f Bridge strengthening and replacement projects: In progress number 5 3g Completed number 17 12h Commenced number 14 12i

Quality Stakeholder satisfaction with grants administration per cent 85 naj Projects delivered in accordance with agreed scope and standard per cent 98 98

Timeliness Road improvements completed earlier than planned per cent 5 ..k Bridge strengthening and replacement projects completed earlier than planned per cent 5 ..k

Cost Total output cost $ million 144.1 158.5l 122 Output Performance Measures

Major outputs/deliverables Performance measures Unit of measure 2003–04 target 2003–04 actual

Regional road network maintenance Provision of maintenance for declared rural arterial roads, including pavement, bridges, roadside, and traffic facilitation components, covering routine and periodic maintenance, rehabilitation and operational supervision of tasks/projects.

Quantity Lane - km of network maintained km 40,380 40,467 Sq m resurfaced (‘000m2) 11,700 11,816 Bridges treated (periodic maintenance and rehabilitation) number 250 248

Quality Network to intervention levels per cent 90 90 Network >4.2 IRIm per cent 10.2 11.6 Network >5.3 IRIm per cent 2.6 3 Smooth travel exposuren per cent 93 91 Bridges mass limited per cent 2 1.6 Bridges with Level 4 defects per cent 3 2

Timeliness Annual program completed per cent 100 100

Cost Total output cost $ million 140.0 160.1o

Source: Department of Infrastructure a During the year, the program for the delivery of the infrastructure works on each of the corridors was reviewed and revised. Accordingly, work on two of the corridor upgrades progressed on or ahead of the schedule for 2003–04 set out in last year's report, while progress on the remaining two corridors progressed more slowly. All four upgrade projects are targeted for completion in 2005. b Passenger rail services on the Bairnsdale line started in May 2004 and passenger rail services on the Ararat line commenced in early July 2004. c For the first three quarters of 2003–04 the infrastructure lessee, Freight Australia, met the Track Ride Quality specification on all passenger lines. Track testing for the June 2004 quarter was undertaken by Freight Australia but the quarterly Track Ride Quality Index report has not been received by the Department of Infrastructure. Delays in submitting the report are associated with the transfer of Freight Australia ownership to Pacific National Pty Ltd. d Original target included a project (Cliff Street, Portland) that is no longer funded through Road Assistance Grants. e Original target included six Commonwealth projects that were not funded and were subsequently withdrawn. Four projects were delayed due to: encountering unsuitable materials and adverse weather; pending relocation of assets of Powercor Australia Ltd; land acquisition approval; and pre-construction issues with Freight Australia and access to rail land. f Original target included six Commonwealth projects that were not funded and were subsequently withdrawn. Three projects were delayed due to: problems associated with removal of a power pole due to industrial action; land acquisition approval; and preconstruction issues with Freight Australia and access to rail land. g One project experienced delays with the EES process to deal with the value of the existing bridge. Another project did not commence due to heritage issues. h Seven projects were delayed as a result of: planning issues; heritage and environmental issues; contractor delays; the Ballarat Fast Rail Project; slow construction and bridge foundation design errors. Two projects not included in the original target were completed. i Four projects were delayed due to: delay in award of contract; the Ballarat Rail project and contractor delays. Two additional projects commenced that had not been included in the original target. j This measure relates specifically to the administration of library grants to local government, and is now reported by DVC. It has therefore been removed from the outputs of DOI. k These measures reflect projects finishing significantly early (i.e. three months or more ahead of schedule). A number of projects were completed earlier within the quarter, but none were completed three months ahead of schedule. l Primarily reflects additional depreciation expense following the revaluation of road infrastructure at 30 June 2003. m ‘IRI’ is the International Roughness Index. Community surveys for comfort have indicated that road surfaces having a count greater than 4.2 IRI were considered ‘moderately rough’, while counts above 5.3 IRI were considered ‘very rough’. n Smooth travel exposure is measured as the percentage of travel undertaken each year on roads with a roughness level condition <4.2 IRI. o Largely a reclassification of expenditure from capital to operating. Appendixes DOI Annual Report 2003–04 123

Metropolitan transport services

These outputs involve the delivery of a quality public transport service to the metropolitan area through contractual arrangements with private operators. These services include train, tram and bus services. Contracts with private operators are managed to ensure that service provision is in accordance with contractually agreed standards and that the committed investment levels for rolling stock and new buses are delivered. These outputs make a significant contribution to the achievement of the following departmental objectives: • public safety: improve transport, marine and energy-sector safety and reduce the incidence, severity and cost of accidents and incidents • access and mobility: deliver a transport system that provides people with the choice to participate in a range of activities to meet their changing needs • infrastructure delivery and management: deliver cost effective investment in, and management of, infrastructure development in Victoria. These objectives make a contribution to the achievement of the following government outcomes: • safe streets, homes and workplaces • growing and linking all of Victoria • protecting the environment for future generations • building cohesive communities and reducing inequalities • more jobs and thriving, innovative industries across Victoria • sound financial management • government that listens and leads.

Major outputs/deliverables Performance measures Unit of measure 2003–04 target 2003–04 actual

Metropolitan train services Manage the contractual arrangements with the private operator for the delivery of quality metropolitan train services. Contractual performance standards are reflected in the performance measures for the delivery of outputs.

Quantity Total km timetabled million 16.8 17.0 Services delivered per cent 99.5 98.8a

Quality Customer satisfaction indexb score 71 68.8c Passengers carried million 134.6 134.9 Rolling stock plans provided and agreed per cent 100 100

Timeliness Services arriving at destination no more than 59 seconds before and less than 5 minutes 59 seconds after timetable per cent 97.1 95.9a

Cost Total output cost $ million 546.9 748.7d 124 Output Performance Measures

Major outputs/deliverables Performance measures Unit of measure 2003–04 target 2003–04 actual

Metropolitan tram services Manage the contractual arrangements with the private operator for the delivery of quality metropolitan tram services. Contractual performance standards are reflected in the performance measures for the delivery of outputs.

Quantity Total kilometres timetabled million 22 22.5 Service delivery per cent 99.1 99.6

Quality Customer satisfaction indexb score 71.2 70.6c Passengers carried million 140 135.9c Services completing journey per cent 99.2 99.3 Rolling stock plans provided and agreed per cent 100 100

Timeliness Services departing a monitoring point no more than 59 seconds before and less than 5 minutes 59 seconds after timetable: 2nd monitoring point per cent 95 93.5 2nd last monitoring point per cent 72 67.6e

Cost Total output cost $ million 270.5 366.1d Appendixes DOI Annual Report 2003–04 125

Major outputs/deliverables Performance measures Unit of measure 2003–04 target 2003–04 actual

Metropolitan bus services Manage the contractual arrangements with private operators for the delivery of quality metropolitan bus services in accordance with the contractual service standards and implementation of approved initiatives for new bus services, including air-conditioning on bus replacements.

Quantity Kilometres scheduled million 73.2 74.9 Timetabled bus services delivered per cent 99 99.8

Quality Customer satisfaction indexb score 70 70.7 Passengers carried million 92.7 93.6 Air-conditioned and low-floor route buses in service per cent 32 31.9

Timeliness Services within 5 minutes of timetable per cent 95 92.0

Cost Total output cost $ million 310.7 298.8

Source: Department of Infrastructure a Service delivery and punctuality were affected by a shortage of qualified drivers and problems with rolling stock reliability. b The Director of Public Transport commissions monthly surveys of both users and non-users of public transport to measure satisfaction with services. c Key factors contributing to results being below target were a 9.8 per cent fare increase in January 2004, and poorer than expected operational performance (punctuality and reliability of services). The legacy of the withdrawal of NX from its franchises was a key factor behind this deterioration. d Increase reflects the additional funds required to ensure that the public transport partnership arrangements are financially sustainable. Total funding of $1.1 billion over five years across metropolitan train and tram outputs has been allocated for this purpose. In addition, in 2003–04 there were a number of one-off payments required to finalise existing contract agreements. e The below target result is not due solely to trams arriving late; trams arriving at the monitoring point earlier than the timetable are also included. A revised punctuality measure for 2004–05 has been introduced which better reflects overall punctuality and is consistent with the code of practice which has been adopted in the Customer Service Charter. 126 Output Performance Measures

Metropolitan transport infrastructure and public development projects

These outputs involve the development and maintenance of metropolitan road networks and implementation of major civic and road projects, the management and delivery of major public construction and land development projects, and the development of metropolitan rail and tram infrastructure as set out in the contracts with the private operators. They deliver major parts of the transport network in the metropolitan area and are aimed at facilitating the movement of goods and passengers in an efficient, timely and safe manner to their destinations. These outputs make a significant contribution to the achievement of the following departmental objectives: • infrastructure delivery and management: deliver cost-effective investment in, and management of, infrastructure development in Victoria • public safety: improve transport, marine and energy-sector safety and reduce the incidence, severity and cost of accidents and incidents • seamless freight and logistics system: facilitate the development of an integrated and seamless freight and logistics system that enhances global competitiveness and meets the needs of business • access and mobility: deliver a transport system that provides people with the choice to participate in a range of activities to meet their changing needs • organisational capability building: build the DOI’s capability and capacity to deliver high-quality and efficient services. These objectives make a contribution to the achievement of the following government outcomes: • growing and linking all of Victoria • sound financial management • building cohesive communities and reducing inequalities • safe streets, homes and workplaces • more jobs and thriving, innovative industries across Victoria • government that listens and leads • promoting sustainable development • protecting the environment for future generations. Appendixes DOI Annual Report 2003–04 127

Major outputs/deliverables Performance measures Unit of measure 2003–04 target 2003–04 actual

Metropolitan public transport development Provide enhanced transport network planning capacity to ensure delivery of the Government’s commitment to metropolitan public transport infrastructure development and to monitor the quality of rail infrastructure as set out in the contracts with the private operators.

Quantity Franchise maintenance account funds fully allocated to defined maintenance and renewal works per cent 100 100

Quality Metropolitan rail design works completed to feasibility evaluation stage per cent 100 100 Ensure franchisee asset management plans are provided number 4 4 Ensure franchisee asset management reports are provided number 4 2a Temporary speed restrictions due to track condition in the metropolitan area no more extensive than that which existed at franchise commencement number 4 4

Timeliness Franchise asset management plans and reports provided within agreed timelines per cent 100 100

Cost Total output cost $ million 18.4 15.2

Major metropolitan road projects Improve the performance of Melbourne’s arterial road network by carrying out large scale projects addressing network discontinuities and bottlenecks by improving access, decreasing the variability of travel time, and reducing transport costs.

Quantity Projects to commence number 1 1 Projects continuing number 3 3 Projects to be completed number 1 1

Quality Projects delivered in accordance with agreed scope and standards per cent 100 100

Timeliness Projects delivered in accordance with original planned completion date per cent 95 100

Cost Total output cost $ million 100.7 124.3b 128 Output Performance Measures

Major outputs/deliverables Performance measures Unit of measure 2003–04 target 2003–04 actual

Metropolitan arterial road links Improve the safety and performance of Melbourne’s arterial road network by carrying out projects to address deficiencies and bottlenecks. Provide new link roads and intersection improvements that improve access, decrease the variability of travel time, increase residential amenity and reduce transport costs, particularly in the outer suburbs.

Quantity Noise barriers retrofitted km 2 2 Road projects covering duplications and overtaking lanes: projects completed lane km 16.8 16.8 projects in progress lane km 7.8 7.8 projects commencing lane km 4.4 4.4 Bridge strengthening and replacement: projects completed number 4 1c projects commencing number 3 3 Pavement widening (including shoulders): projects in progress km 3.9 ..d projects commencing km 3.9 ..d Road improvements (including intersections and realignments): projects completed number 2 1e projects in progress number 2 2 projects commencing number 2 2

Quality Projects delivered without variance to planned scope and standards per cent 95 95

Timeliness Projects delivered in accordance with original planned completion date per cent 95 57.1f

Cost Total output cost $ million 160.5 162.4 Appendixes DOI Annual Report 2003–04 129

Major outputs/deliverables Performance measures Unit of measure 2003–04 target 2003–04 actual

Metropolitan road network maintenance Provision of the annual maintenance program for declared metropolitan arterial roads, including pavement, bridges, roadside, and traffic facility components, covering routine and periodic maintenance, rehabilitation and operational management tasks.

Quantity Lane – km of network maintained km 10,550 10,678 Sq m resurfaced (‘000m2) 2,500 2,499 Bridges treated (periodic maintenance and rehabilitation) number 60 74

Quality Network to intervention levels per cent 90 90 Network >4.2 IRIg per cent 12.7 14.1 Network >5.3 IRIg per cent 4.5 4.9 Smooth travel exposureh per cent 91 89 Bridges mass limited per cent 2 2.2 Bridges with Level 4 defects per cent 1.2 1.2

Timeliness Annual program completed per cent 100 100

Cost Total output cost $ million 154.5 159.9

Major public construction and land development Management and delivery of nominated public construction and land development projects, the coordination of development projects and associated feasibility studies.

Quantity Project feasibility studies conducted number 5 6 Melbourne Exhibition and Convention Centre ongoing site management number 1 1

Quality Delivery of nominated projects complies with agreed plans per cent 100 100i

Timeliness Hazardous waste siting: statutory approval given for soil recycling facility at preferred site date Dec. 2003 naj application lodged for statutory approval for a long-term containment facility date Dec. 2003 nak Bundoora Land Development: final development payment date Dec. 2003 nal Kensington Banks Residential Program: sales of final land parcels date Dec. 2003 nam Complete construction of Bonegilla Migrant Settlement Centre date Apr. 2004 nan Beacon Cove: start construction of landside development date Feb. 2004 Feb. 2004

Cost Total output cost $ million 2.8 0.7 130 Output Performance Measures

Source: Department of Infrastructure a This measure is no longer applicable under the new partnership agreements that commenced in April 2004. The appropriate target number of reports for 2003–04 is ‘2’ instead of ‘4’, which has been achieved. b Primarily due to the establishment of SEITA. c One project involving a bridge over a rail crossing was delayed due to negotiations with rail authorities to establish an agreement. Two projects experienced difficulties with the contract awarded due to contractor solvency. d Delays were experienced in resolving project scope. e One project was delayed due to adverse weather. f The overall result reflects project delays outlined for other measures in this output. g ‘IRI’ is the International Roughness Index. Community surveys for comfort have indicated that road surfaces having a count greater than 4.2 IRI were considered ‘moderately rough’, while counts above 5.3 IRI were considered ‘very rough’. h Smooth travel exposure is measured as the percentage of travel undertaken each year on roads with a roughness level condition <4.2 IRI. i Despite delays with some nominated projects due to a variety of factors outlined in the notes below, projects will be delivered in accordance with agreed plans, as directed. j The target has moved to May 2005, while project proponent Gippsland Water finalises the business case prior to lodging the approvals application. k The lodging of an application has been delayed due to the Government’s decision to investigate using a crown land site in lieu of private sites identified earlier. EES and planning processes are continuing. l The target that was published in the 2003–04 Budget Paper No. 3 was incorrect. The correct target, August 2004, was published in the 2004–05 Budget Papers. m Two lots are remaining, with sales being reprioritised and expected to be finalised in 2004–05. n Construction is currently under way. Preparation of the design brief was delayed pending the outcome of acquiring a surrounding parcel of land. Appendixes DOI Annual Report 2003–04 131

Transport safety and accessibility

These outputs involve safety initiatives for road, public transport and waterway users. This is provided through the application of performance-based standards to regulate transport providers, and to reduce cost of regulations on business, while raising safety and access levels for the community through improved transport regulation, reform, education, environmental response strategies and prevention programs. It includes services to improve accessibility and subsidised taxi travel for those unable to use other public transport. These outputs make a significant contribution to the achievement of the following departmental objectives: • public safety: improve transport, marine and energy-sector safety and reduce the incidence, severity and cost of accidents and incidents • access and mobility: deliver a transport system that provides people with the choice to participate in a range of activities to meet their changing needs • infrastructure delivery and management: deliver cost effective investment in, and management of, infrastructure development in Victoria • organisational capability building: build DOI’s capability and capacity to deliver high-quality and efficient services. These objectives make a contribution to the achievement of the following government outcomes: • safe streets, homes and workplaces • growing and linking all of Victoria • protecting the environment for future generations • building cohesive communities and reducing inequalities • sound financial management • more jobs and thriving, innovative industries across Victoria • government that listens and leads. 132 DOI Annual Report 2003–04

Major outputs/deliverables Performance measures Unit of measure 2003–04 target 2003–04 actual

Taxi, hire car and tow-truck regulation Administer, regulate and monitor taxis, hire cars, special-purpose vehicles, restricted hire cars, tow trucks and the driving instructor industry; and ensure public transport safety standards are maintained and advanced through the implementation of new initiatives.

Quantity Commercial passenger vehicles audited – taxis, hire cars, etc. number 13,000 10,343a Tow-truck licence transactions number 420 341b Tow-truck driver authorities issued number 1,100 799b Commercial passenger vehicle licence transactions: taxis number 1,200 2,317c others number 350 433 Commercial passenger vehicle drivers’ certificates issued number 14,000 21,781d Driver certificates, authorities and instructor applications: suspensions, revocations and refusals number 180 216 Driver instructor authorities processed number 450 476

Quality Taxis and tow trucks conform to quality standards per cent >94 86.8e Taxi service complaints investigated number 600 1,047f Tow Truck Allocation Centre calls answered within 45 seconds per cent 96 96 Successful criminal prosecutions per cent 96 93.2 Appeals dismissed: driver certificates, authorities and instructor applications per cent 94 98.2

Timeliness Preliminary investigation of serious taxi service complaints completed within 10 working days per cent 92 94

Cost Total output cost $ million 3.2 3.6 Appendixes DOI Annual Report 2003–04 133

Major outputs/deliverables Performance measures Unit of measure 2003–04 target 2003–04 actual

Accessible transport initiatives Provide access for people with disabilities to transport facilities by monitoring obligations under the Disability Discrimination Act 1992 (Cwth), programs of the private operators and implementation of direct government funded initiatives. This includes the Multi Purpose Taxi Program of subsidised taxi services for those unable to use other public transport.

Quantity Taxi trips : passenger only number (‘000) 5,400 4,949 with wheelchair number (‘000) 500 494 Applications assessed number 26,500 14,261g Customer telephone enquires number (‘000) 60 103h Number of transport access sites treated number 267 274

Quality Projects delivered to agreed scope or standard per cent 100 100

Timeliness Applications completed within 10 working days per cent 96 96 Works completed within agreed time frames per cent 100 100

Cost Total output cost $ million 58.9 58.7

Accident blackspots Deliver an agreed program of remedial actions to upgrade identified high accident black spot and black length areas of roads to reduce the cause of regular severe road accidents that have high social costs to the community.

Quantity Projects to be completed number 51 94i

Quality Projects completed to agreed scope and standard per cent 100 100

Timeliness Programmed work to be completed in accordance with agreed time frames per cent 100 100

Cost Total output cost $ million 7.0 22.5j 134 DOI Annual Report 2003–04

Major outputs/deliverables Performance measures Unit of measure 2003–04 target 2003–04 actual

Traffic and road use management improvements Provide and undertake low-cost traffic improvement projects and services, including traffic priority signalling and information services, incident management and the administration of road freight regulatory reform for greater efficiency of freight movement.

Quantity Traffic management projects number 5 5 Road user improvement projects number 135 108k

Quality Projects delivered in accordance with agreed scope and standards per cent 100 100

Timeliness Program works completed within agreed time frames per cent 100 81l

Cost Total output cost $ million 29.6 29.9

Vehicle and driver regulation Provision of a vehicle registration and driver licensing service to provide a framework covering the integrity of the road user environment, ensuring the registration of trained drivers, roadworthy vehicles, and the ability to easily trace missing vehicles.

Quantity New driver licences issued number (‘000) 112 118 Driver licences renewed number (‘000) 530 526 New vehicle registrations issued number (‘000) 460 456 Vehicle registrations renewed number (‘000) 3,973 3,948 Vehicle registration transfers number (‘000) 930 929 Vehicle and driver information requests processed number (‘000) 1,560 1,507

Quality User satisfaction with registration and licensing per cent >90 nam Currency of registration and licensing records per cent >99 99

Timeliness Customers served within 10 minutes in licensing and registration offices per cent >80 81 Average time to answer central calls seconds <30 45n

Cost Total output cost $ million 94.2 99.7 Appendixes DOI Annual Report 2003–04 135

Major outputs/deliverables Performance measures Unit of measure 2003–04 target 2003–04 actual

Road safety initiatives and regulation Provision of a safety program that embraces two main areas: road user education and the upgrading of aspects of the road infrastructure system that have proved dangerous.

Quantity Road safety projects/initiatives: safer roads number 33 27 safer vehicles number 4 4 safer road users number 18 16 school speed zones per cent complete 25 77o

Quality Projects completed within specified scope and standards per cent 100 100

Timeliness Programmed works completed within agreed time frames per cent 100 100

Cost Total output cost $ million 49.3 49.5

Public transport safety initiatives and regulation Maintain and advance public transport safety standards through the implementation of new initiatives and operator accreditation systems.

Quantity Safety initiatives: rail safety activity compliance inspections (unannounced audits) number 120 134 bus mechanical inspections number 50 56

Quality Audit observations closed out by next compliance audit per cent 100 98 Non-conformances/compliances closed out within two months – rail per cent compliance 100 72p Material changes to accreditation responded with feedback within two weeks per cent 100 96.1

Timeliness Audits carried out: rail (within 12 months) per cent 100 100 bus (within 24 months) per cent 100 100 Follow up of critical defect notices within five days per cent 90 100 Review of responses of inquiry within six weeks per cent 90 100

Cost Total output cost $ million 8.6 11.2 136 DOI Annual Report 2003–04

Major outputs/deliverables Performance measures Unit of measure 2003–04 target 2003–04 actual

Marine safety initiatives and regulation Develop and administer the policy/regulatory framework for the safe and efficient operation of commercial and recreational vessels in Victorian waters and implement a range of programs and initiatives designed to achieve the Government’s marine safety objectives. Facilitate the marine pollution response system and ballast water and hull-fouling regime to prevent pests entering coastal waters.

Quantity Vessel compliance with registration requirements per cent >90 97.7 Operators of personal water craft (jet skis) with licences per cent >90 92 Audit compliance with Recreational Boating Regulations: boats audited per cent 2 3.6 waterways audited per cent 10 13 Commercial vessels surveyed number 1,500 1,351q Marine operators’ certificates issued number 350 499r Safety audits performed on commercial vessels number 150 236s

Quality Reported oil pollution incidents responded to and resolved per cent 100 100 Vessel surveys conducted and documented in accordance with strict quality procedures per cent 100 100

Timeliness Oil pollution response capability to react within four hours of reporting for small spills per cent 100 100 Increase the number of licensed recreational boat operators by 10 per cent date Dec. 2003 Dec. 2003t

Cost Total output cost $ million 11.6 11.7

Source: Department of Infrastructure a Variance from the 2003–04 target reflects the redirection of resources into investigating other priority areas such as fraud and touting. b These two measures reflect response to external demand and all transactions were processed. c The actual was higher due to a number of taxi assignments which had expired being renewed and an increase in vehicle substitutions. This measure reflects response to external demand and all transactions were processed. d This measure reflects response to external demand and all transactions were processed. e This measure is below target as minor infringements which previously resulted in only warnings being given are now treated as breaches of quality standards. f An increase in the Victorian Taxi Directorate’s profile over the past year, combined with the availability of a 24-hour complaint line, has contributed to an increased number of complaints being formally lodged. These include complaints from other road users, as well as taxi customers. g The number of applications assessed is below target due to changes to the eligibility criteria for membership of the Multi Purpose Taxi Program. The program was also closed temporarily to allow a number of changes to be made. h Changes to the Multi Purpose Taxi Program required a number of mail-outs to members during the year which resulted in an increase in the number of telephone inquiries. i Includes some projects originally scheduled for completion in 2002–03. j Largely reflects the inclusion of expenditure on programs carried over from 2002–03. k Difficulty in obtaining stakeholder agreements, together with scoping and design issues, resulted in the bicycle program falling behind schedule. Traffic signal programming and switch on delays led to slippage in delivering the public transport aspect of this program. l The result reflects delays in the delivery of some projects. Appendixes DOI Annual Report 2003–04 137

m The User Satisfaction Survey is conducted every two years. This survey was last completed in 2002–03 and therefore will not be conducted until 2004–05. n Variance between the 2003-04 target and the actual result was due to increased call volumes and complexity resulting from adjustments in government policy and Western Ring Road fixed speed camera enquiries. o Program implementation has been accelerated. p A total of four non-conformance/compliance reports were not closed out within two months. These were not involved with critical safety issues and all were addressed shortly after the two month period elapsed. q A number of factors affected the actual result, including regional and seasonal issues that altered the use of fishing fleets; the impact of the drought on hire and drive operators (that is, vessels not being able to operate due to low water levels at inland waterways); vessels going out of survey and owners deferring survey response. r There was an increasing demand for certification. s The annual target was exceeded as a result of concentrated audit efforts in specific regional areas, focusing on hire-and-drive operators to improve compliance between annual surveys. No systemic problems or deficiencies were identified with the fleet. t The increase in licensed recreational boat operators at the target date was 12 per cent. 138 DOI Annual Report 2003–04

Legislation administered as at 30 June 2004

As at 30 June 2004, the following legislation Local Government Act 1989 and 24E (which are administered by the was administered by the Minister for Minister for Environment). Clauses 4 and 9(3) of Schedule 11 and section Transport, the Minister for Major Projects, 123, in so far as it relates to the revocation This Act provides for the protection of the the Minister for Energy Industries and of local laws made pursuant to the powers sea and other waters from pollution by oil Resources and the Minister for Information conferred by those clauses by reason of section and other noxious substances. and Communication Technology. 207 of the Act. Port Services Act 1995 Acts administered by the Minister (This Act is otherwise administered by for Transport Except for: the Minister for Local Government and the Border Railways Act 1922 Attorney-General). This Act provides generally Sections 45–57, 59–63 and 119–123 (these for matters to do with local government in provisions are administered by the Minister This Act ratifies an agreement between the Victoria. The provisions administered by the for Finance). States of Victoria and New South Wales as to Minister for Transport relate to traffic control. Sections 25, 27–29, 96, 99–108, 124–125 the construction, maintenance and operation and all of Schedule 1 except clauses 4, 6(1) of railway lines and the construction and main- Marine Act 1988 and (2) (these provisions are administered tenance of bridges across the Murray River. This Act establishes the Director of Marine by the Treasurer). Chattel Securities Act 1987 Safety and provides for the objects, powers This Act establishes the POMC, POHC and and functions of the Director. The Act also Part 3 (the remaining provisions are administered the VRCA. provides for registration of vessels, regulation by the Minister for Consumer Affairs). This Act of the operation of vessels, offences involving Public Transport Competition Act 1995 makes provision for security interests in motor alcohol, prevention of pollution of State vehicles, trailers and vessels, including waters, the adoption of certain international This Act provides for the accreditation of registration of interests. conventions, enforcement of various offences passenger bus operators and implements a system of service contracts for route service Crown Land (Reserves) Act 1978 through the issue of marine infringement notices and for other matters. operations. Only in so far as it relates to the land shown Rail Corporations Act 1996 as Crown Allotment 18, section 12, City of Melbourne City Link Act 1995 Port Melbourne, Parish of Melbourne South, as The main purpose of this Act is to establish This Act ratifies the Agreement between shown on Original Plan No. 119746-A lodged VicTrack, the Spencer Street Station Authority the State and Transurban relating to the in the Central Plan Office – (LA/32/0012) and V/Line Passenger Corporation. It also construction and operation of the Melbourne known as Station Pier. provides a rail access regime, and confers City Link; gives the State certain powers in certain powers on rail and tram operators. (The remaining provisions are administered relation to land affected by the project; gives by the Minister for Planning and the Minister the Link Corporation certain powers in relation Road Safety Act 1986 for Finance.) to roads in the project area; and empowers the This Act provides for the registration of motor fixing, charging and collection of tolls in vehicles, licensing of drivers, offences involving Land Act 1958 relation to the use of vehicles in toll zones. alcohol or other drugs and other provisions In so far as it relates to the exercise of power National Rail Corporation (Victoria) regulating the operation and use of motor relating to the leases and licences under Act 1991 vehicles. Subdivisions 1 and 2 of Division 9 of Part 1 in respect of the land described as Allotment This Act approves and gives effect to an Transport Act 1983 18 of Section 12, City of Port Melbourne, agreement made between the Commonwealth This Act establishes and sets out the functions Parish of Melbourne South, being the land in and the States of Victoria, New South Wales, and powers of DOI in relation to transport Certified Plan No. 119746 lodged in the Central Queensland and Western Australia relating matters, and those of the Roads Corporation. Plan Office of DSE, known as Station Pier. to the establishment and operation of the The Act provides for the licensing of (This Act is otherwise administered by the National Rail Corporation Limited. commercial vehicles and for various offences. Attorney-General, the Minister for Corrections, The Act also governs railway and tram safety. Pollution of Waters by Oil and the Minister for Finance, the Minister for Noxious Substances Act 1986 Very Fast Train (Route Investigation) Health, and the Minister for Planning). Act 1989 Except for sections 30 and 47, which are jointly administered with the Minister for Environment; The purpose of this Act is to facilitate the and sections 8, 9, 10, 11, 12, 13, 18, 19, 20, investigation of a route for a very fast train 21, 22, 23, 23B, 23D, 23E, 23G, 23J, 23K, 23L linking Melbourne with other centres within or outside the State. Appendixes DOI Annual Report 2003–04 139

Westernport (Crib Point Terminal) Electricity Safety Act 1998 State Electricity Commission Act 1958 Act 1963 This Act regulates the safety of electricity Section 107. (This Act is otherwise administered This Act assists the development and operation supply and use in Victoria, and the efficiency by the Treasurer). Section 107 preserves the of a petroleum terminal at Crib Point by of electrical equipment. The Act establishes electricity theft and tampering provisions in providing for certain existing and new the OCEI as the regulator for these purposes. the Electricity Light and Power Act 1958. easements, and clarifying the status of existing Fuel Emergency Act 1977 agreements relating to the pipeline running Acts administered by the Minister from the terminal site to Dandenong. This Act sets out Ministerial powers to preserve for Information and Communication and allocate fuel supplies during proclaimed Technology Acts administered by the Minister fuel emergencies. There are no Acts currently administered for Major Projects Gas Industry Act 2001 by this Minister. Docklands Act 1991 This Act regulates the Victorian gas industry. Acts passed during 2003–04 This Act establishes the powers and functions The Act requires persons who distribute or sell of the Victorian Urban Development Authority gas to obtain a licence from the ESC, or a Minister for Transport in relation to the docklands area. licence exemption. The Act continues VENCorp, Marine (Amendment) Act 2004 the independent system operator for the Project Development and Victorian gas wholesale market. Key provisions Mitcham–Frankston Project Act 2004 Construction Management Act 1994 include a consumer safety net for domestic Road Management Act 2004 Parts 5 (except to the extent that it relates and small business customers in the transition to the exercise of powers and functions under to effective retail competition. Road Safety (Amendment) Act 2003 Part 9A of the Planning and Environment Act Road Safety (Drug Driving) Act 2003 1987), 5A and 8. Gas Pipelines Access (Victoria) Act 1998 Port Services (Port Management Reform) (The remainder of the Act is administered by Act 2003 This Act provides for the regulation of third the Premier, except Parts 4 and 7 and section party access to natural gas pipeline systems. Transport (Rights and Responsibilities) 46, which are administered by the Minister for The Act is part of a national scheme which Act 2003 Planning). This Act facilitates the delivery of gives effect to the National Third Party Access infrastructure projects and establishes the Transport Legislation (Miscellaneous Code for Natural Gas Pipeline Systems. The Secretary to DOI as a body corporate. Amendments) Act 2004 ‘lead legislation’ is the Gas Pipelines Access Victorian Urban Development (South Australia) Act 1997. Minister for Major Projects Authority Act 2003 Gas Safety Act 1997 No Acts passed during 2003–04. This Act establishes the Victorian Urban This Act regulates the safety of gas supply and Development Authority. The Authority takes Minister for Energy Industries use in Victoria. The Act establishes the OGS as over the functions and powers of the former and Resources the regulator for these purposes. Urban and Regional Land Corporation and Energy Legislation (Miscellaneous the former Docklands Authority to develop National Electricity (Victoria) Act 1997 Amendments) Act 2004 land in Victoria. This Act regulates the NEM. The Act is part of a national scheme which gives effect to the Minister for Information and Acts administered by the Minister Communication Technology for Energy Industries National Electricity Law. The ‘lead legislation’ is the National Electricity (South Australia) No Acts passed during 2003–04. Electricity Industry Act 2000 Act 1996. This Act regulates the Victorian electricity supply Nuclear Activities (Prohibitions) industry. The Act requires persons who generate, Act 1983 transmit, distribute, supply or sell electricity to obtain a licence from the ESC, or a licence This Act prohibits uranium mining in Victoria, exemption. Key provisions include a consumer and the construction or operation of certain safety net for domestic and small business nuclear facilities in Victoria, including nuclear customers in the transition to effective retail reactors and nuclear power reactors. The Act competition. also regulates the possession of certain nuclear materials, and assists the Commonwealth in meeting its international nuclear non- proliferation objectives. 140 DOI Annual Report 2003–04

Budget Portfolio Outcomes

The Budget Portfolio Outcomes statements provide a comparison of the actual financial results for all entities within the Infrastructure budget portfolio with the forecasts published in Budget Paper No. 3 – 2003–04 Budget Estimates. The statements are prepared on a consolidated basis. Entities are consolidated within a budget portfolio when 50 per cent or more of their funding is received through appropriations and they are directly accountable through Ministers to Parliament. The entities included in the statements are: • DOI • VicRoads • SEITA Financial transactions and balances are classified into either controlled or administered in accordance with AAS 29 Financial Reporting by Government Departments and as agreed with the Treasurer for the purposes of Budget Paper No. 3. Budget Portfolio Outcomes statements are not prepared on the same basis as DOI’s financial report and are not subject to audit by the Victorian Auditor-General’s Office. Appendixes DOI Annual Report 2003–04 141

Statement of Financial Performance for the year ended 30 June 2004

2003–04 actual 2003–04 budget Variation Notes ($ million) ($ million) (%) Revenue from ordinary activities Output appropriations 2,504.0 2,388.2 5 1 Special appropriations 0.1 .. .. Resources received free of charge or for nominal consideration 371.5 .. .. 2 Sales of goods and services 136.0 104.4 30 3 Commonwealth grants ...... Taxes 53.2 48.1 11 Fines and fees 1.7 2.0 (15) Other revenue and revenue from other parties 109.0 137.0 (20) 3 3,175.4 2,679.6 19 Expenses from ordinary activities Employee entitlements (258.2) 190.3 (236) 4 Depreciation and amortisation 296.7 283.9 5 Resources provided free of charge or for nominal consideration 449.7 .. .. 5 Grants and other payments 802.7 566.5 42 6 Capital asset charge 62.2 126.2 (51) 7 Supplies and services 1,761.6 1,393.5 26 8 Other expenses from ordinary activities 2.1 .. .. Borrowing costs 6.6 6.5 2 3,123.3 2,567.0 22 Result from ordinary activities 52.1 112.6 (54) Loss from extraordinary items ...... Net result for the reporting period 52.1 112.6 (54) Net increase in asset revaluation reserve 453.0 .. .. 9 Total revenues, expenses and revaluations recognised directly in equity ...... Total changes in equity other than those resulting from transactions with Victorian State Government in its capacity as owner 505.1 112.6 349

Notes: 1.Variation primarily reflects additional Appropriation funding provided for a range of new initiatives and to meet higher public transport costs following the withdrawal of NX in 2002 and the implementation of new five-year partnership agreements with Connex and Yarra Trams. 2.2003–04 actual figure reflects the revaluation of rolling stock acquired by the State following the NX receivership and the termination of the previous public transport franchise contract with Connex. 3.2003-04 actual figure for ‘Sales of Goods and Services’ includes activities which were budgeted as ‘Other Revenue and Revenue from Other Parties’. The combined result is in line with the Budget forecast. 4.2003–04 actual figure includes the impact of the transfer of VicRoads' unfunded superannuation liability to the Department of Treasury and Finance (DTF) of $472 million. 5.2003–04 actual figure includes the transfer to VicTrack of rolling stock acquired by the State from the former NX and Connex public transport franchisees of $448 million. VicTrack has recorded the corresponding receipt of the rolling stock. 6.Variation primarily reflects the change in accounting treatment for the acquisition of new rolling stock from an operating to a finance lease, the reclassification of payments for V/Line services as a ‘Grant and Other Payment’ rather than ‘Supplies and Services’ following the relinquishment of the business by NX and its transfer to government, and the reclassification of Capital Asset Charge for certain rail infrastructure assets. 7.Variation reflects the reclassification of Capital Asset Charge for certain rail infrastructure assets as a ‘Grant and Other Payment’. 8.Variation primarily reflects the additional costs of running train and tram services previously operated by NX and the operation of services by Connex and Yarra Trams under the new partnership agreements as well as the recognition of employee entitlements of former public transport franchisee staff. 9.2003–04 actual figure primarily reflects the revaluation of road infrastructure assets. 142 Budget Portfolio Outcomes

Statement of Financial Position as at 30 June 2004

2003–04 actual 2003–04 budget Variation Notes ($ million) ($ million) (%) Current assets Cash assets 51.4 59.9 (14) 1 Other financial assets 50.0 64.0 (22) 1 Receivables 156.1 81.9 91 2 Inventories 7.4 8.1 (9) Prepayments 2.7 2.3 17 Other ...... Total current assets 267.6 216.3 24 Non-current assets Receivables 636.0 384.8 65 3 Inventories 3.3 3.8 (13) Other financial assets ...... Property, plant and equipment 17,480.6 17,451.8 .. Intangible assets 7.3 9.3 (22) Other ...... Total non-current assets 18,127.2 17,849.7 2 Total assets 18,394.8 18,066.1 2 Current liabilities Payables 566.2 335.6 69 4 Interest bearing liabilities ...... Provisions 26.3 61.3 (57) 5 Other 11.7 10.9 7 Total current liabilities 604.2 407.8 48 Non-current liabilities Interest bearing liabilities 22.8 15.3 49 Provisions 54.2 487.4 (89) 5 Other 180.4 4.0 4,410 6 Amounts owing to other departments ...... Total non-current liabilities 257.4 506.7 (49)

Total liabilities 861.6 914.5 (6)

Net assets 17,533.2 17,151.5 2 Equity Contributed capital 14,789.5 14,799.8 .. Reserves 3,256.5 2,803.5 16 Accumulated surplus (512.8) (451.8) 14 Total equity 17,533.2 17,151.5 2

Notes: 1.Variation reflects use of funds to meet additional public transport costs. 2.Variation reflects higher than anticipated level of debtors mainly related to road and public transport activities. 3.Variation reflects output revenue earned by DOI from government to meet commitments where the timing of the cash payment will occur in a future period. 4.Variation primarily reflects higher than anticipated level of rail project and property acquisition activity. 5.Variation reflects the impact of the transfer of VicRoads' unfunded superannuation liability to DTF. 6.Variation primarily reflects recognition in 2003–04 of employee entitlements of former public transport franchisee staff. Appendixes DOI Annual Report 2003–04 143

Statement of Cash Flows for the year ended 30 June 2004

2003–04 actual 2003–04 budget Variation Notes ($ million) ($ million) (%) Cash flows from operating activities Receipts from government 2,444.4 2,586.8 (6) 1 Receipts from other entities 220.0 235.4 (7) Payment of supplies, grants and employees (2,355.4) (2,151.4) 9 2 309.0 670.9 (54) Interest received 7.8 0.4 1,850 Other revenue 18.6 48.6 (62) 3 Capital asset charge (62.2) (126.2) (51) 4 Borrowing costs expense (6.6) (6.5) 2 Net cash inflow from operating activities 266.6 587.1 (55) Cash flows from investing activities Payments for property, plant and equipment (437.8) (733.1) (40) 5 Proceeds from sale of property, plant and equipment 15.0 6.2 141 6 Payments for investments 0.5 .. .. Proceeds from sale of business assets (repayment of) loans by other entities 14.1 .. .. Net cash (outflow) from investing activities (408.3) (726.8) (44) Cash flows from financing activities Net proceeds from capital contribution by State Government 133.1 139.8 (5) Net proceeds of borrowings ...... Repayment of finance leases ...... Net cash inflows (outflow) from financing activities 133.1 139.8 (5) Net increase (decrease) in cash held (8.5) .. .. Cash at the beginning of the financial year 59.9 59.9 .. Cash at the end of the financial year 51.4 59.9 (14)

Notes: 1.Variation primarily reflects lower than anticipated use of cash following changes to the timing of projects and services as shown by the increase in payables in the Statement of Financial Position.This has offset the increase in Appropriation funding provided for a range of new initiatives and to meet public transport costs. 2.Variation primarily reflects the additional costs of running train and tram services previously operated by NX and the operation of services by Connex and Yarra Trams under the new partnership agreements as well as the reclassification of Capital Asset Charge for certain rail infrastructure assets. 3.Variation primarily reflects unanticipated change in GST input tax credit recoverables and other receivables. 4.Variation reflects the reclassification of Capital Asset Charge for certain rail infrastructure assets as a ‘Payment of Supplies, Grants and Employees’. 5.Variation primarily reflects the change in estimated cash profiles for various projects. 6.Variation reflects higher than anticipated sale of land by VicRoads. 144 Budget Portfolio Outcomes

Administered Items Statement

2003–04 actual 2003–04 budget Variation Notes ($ million) ($ million) (%) Administered revenue Appropriations – payments made on behalf of the State 87.5 49.0 79 1 Special appropriations ...... Resources received free of charge or for nominal consideration ...... Sale of goods and services 0.1 3.9 (97) Commonwealth grants 131.7 139.3 (5) Other grants 1.90 .. .. Taxes 1,216.7 1,194.1 2 Fines 6.4 3.5 83 Fees 14.4 10.6 36 Other 153.3 4.6 3,233 2 Total administered revenue 1,612.1 1,404.9 15 Administered expenses Expenses on behalf of the State ...... Grants and other payments 89.4 45.2 98 1 Payments into the consolidated fund 1,355.5 1,328.6 2 Total administered expenses 1,444.9 1,373.9 5 Revenue less expenses 167.2 31.0 439 Administered assets Cash assets .. 7.2 (100) Receivables 216.9 219.5 (1) Other financial assets ...... Inventories ...... Prepayments ...... Property, plant and equipment .. (0.1) (100) Intangible assets ...... Other financial assets ...... Total administered assets 216.9 226.6 (4) Administered liabilities Payables 13.1 15.2 (14) Interest bearing liabilities ...... Provisions ...... Amounts owing to other departments ...... Other 90.8 92.2 (2) Total administered liabilities 103.9 107.4 (3)

Notes: 1.Variation primarily reflects additional funding for the extension of the NTR Scheme for a further 12 months from 1 April 2004. 2.Variation reflects the revaluation at ‘fair value’ of the former assets and liabilities of the Docklands Authority and the Urban Land Corporation following their transfer to the new authority VicUrban in 2003–04. Appendixes DOI Annual Report 2003–04 145

People Profile

A new Victorian Public Sector classification structure was introduced in November 2003. Because it is fundamentally different to the previous structure, it is not possible to show variation in classifications from last year to this year. Variations are shown in totals only. Executive Officer classifications were unaffected by that change.

Table 1. People profile as at 30 June 2004 Class Actual male Variation from Actual female Variation from Actual total Variation from FTE total previous year previous year previous year SEC 1 0 0 11.0 EO-1 2 +2 0 2 +2 2.0 EO-2 23 +1 3 +2 26 +3 26.0 EO-3 20 -7 10 -2 30 -9 29.6 VPS STS 3 0 3 3.0 VPS PS 4 0 4 4.0 VPS GR6 148 70 218 214.0 VPS GR5 88 73 161 156.9 VPS GR4 53 46 99 97.5 VPS GR3 72 98 170 166.0 VPS GR2 29 66 95 92.6 VPS GR1 5 2 7 7.0 Total staff 448 +29 368 +39 816 +68 799.6

Table 1 represents people on payroll as at 30 June 2004 including people on paid leave (e.g. maternity leave)

Table 2. Executives as at 30 June 2004 Class Continuing executives Special projects Total Male no. Var. Female no. Var. Vacancy no. Var. Male no. Var. Female no. Var. Vacancy no. Var. SEC 1 0 1 EO-1 2 +2 0 -1 2 EO-2 22 +2 2 +2 2 -4 1 -2 0 -1 1 +1 28 EO-3 21 -2 9 -1 8 +4 1 -2 1 -1 3 +3 43 Total 46+2 11+1 10-1 2 -4 1 -2 4+4 74

Table 2 represents DOI Executive envelope including staff on secondment to DOI agenices

Table 3. Executive positions reconcilliation 2004 2003 Executives with total remuneration over $100,000 56 51 Add Executives employed with total remuneration below $100,000 22 42 Total as per Financial Statements 78 93 Add Vacancies 14 12 Accountable Officer 1 1 Less Separations -19 -31 Total executive numbers at 30 June 2004 74 75 146 DOI Annual Report 2003–04

Statutory Authorities Executive Numbers

DPC has advised a change of definition which has resulted in a decrease in numbers reported. For 2004, an 'executive' is any person considered a Chief Executive Officer (CEO) or equivalent role and any person who has significant responsibility and receives a total remuneration package of $110,000 or more. Technical specialists who do not have a management function, and people whose employment is regulated by an award or enterprise agreement are not included.

Organisation Reported Department 2004 2003 Change 2004 2003 2004 2003 Female Male Vacant Female Male Vacant Female Male Vacant Docklands Authority (2) No Yes N/A DOI 2 5 -2 -5 Port of Melbourne Corporation (1) Yes No DOI N/A 1 10 1 1 10 1 Office of Gas Safety Yes Yes DOI DOI 1 3 -2 Office of the Chief Electrical Inspector Yes Yes DOI DOI 4 1 5 -1 1 Public Transport Corporation No Yes N/A DOI 1 -1 Spencer Street Station Authority Yes Yes DOI DOI 1 2 1 -1 -1 SEITA (1) Yes No DOI N/A 2 5 2 5 Transport Ticketing Authority (1) Yes No DOI N/A 1 4 1 4 Urban and Regional Land Corporation (2) No Yes N/A DOI 1 5 -1 -5 V/Line Passenger Corporation (1) Yes No DOI N/A 1 1 VicRoads Yes Yes DOI DOI 12 55 0 11 52 2 1 3 -2 Victorian Channels Authority (2) No Yes N/A DOI 3 1 -3 -1 Victorian Energy Networks Corporation Yes Yes DOI DOI 12 1 17 -1 -5 Victorian Rail Track Yes Yes DOI DOI 1 4 4 1 Victorian Regional Channels Authority (1) Yes No DOI N/A 2 1 2 1 VicUrban (1) Yes No DOI N/A 1 8 1 8 Melbourne Port Corporation (2) Yes No DOI N/A 2 12 1 -2 -12 -1 Total 19 106 3 19 108 4 0 -2 -1 Grand total 125 127 -4

(1) These are new organisations (2) Ceased operating in 2003 Appendixes DOI Annual Report 2003–04 147

Employee Relations

The 2004 VPS enterprise bargaining agreement Managing and valuing diversity Reviewing personal grievances and the new pay and classification structure DOI’s core organisational values include valuing DOI’s Grievance Policy ensures that people were implemented successfully following a its people’s diversity and respecting each other’s have an avenue for redress against treatment process of development, advice and support diverse knowledge, skills and abilities. During they see as unfair or unreasonable. The Human to employees and managers. 2003–04 the DOI People Strategy 2004–06 was Resources Management Branch continues Nil time was lost in 2003–04 through industrial developed and is underpinned by the Diversity to work proactively across DOI to resolve disputes. Plan. The Diversity Plan is a management tool workplace issues as they arise and without to be used to improve the performance of the need for formal grievance. Occupational Health and the organisation based on the principle that Safety reporting managed diversity encourages innovation Upholding public conduct DOI is committed to proactive management and provides a work environment in which DOI’s Ethics at Work and Managing Diversity of individual and organisational health and everyone can achieve his or her full potential. policies and the Public Sector Code of Conduct wellbeing and ensuring that exposure to risks are integral to the way DOI people conduct Employee health and are minimised. business. work/life balance DOI has a wide range of OH&S policies People management practices and procedures in place, underpinning its The People Strategy also includes an Employee commitment to OH&S. An OH&S network Health Plan which contains the following actions, All DOI human resource management policies was established, comprising trained employee for which implementation commenced during have been updated and are available online representatives to guide future OH&S initiatives 2003–04: to all DOI employees and new starters as part in DOI. • an employee health and fitness program of the induction process. The Human Resource Management Branch provides advice and Organisational health initiatives provided • actions in VPS Agreement 2004 under consults with all line areas to ensure policies to staff, such as vision testing and influenza Part 9. Occupational Health and Safety are adhered to and taken into account. vaccinations, have targeted specific issues in • an information campaign about the the DOI office environment in order to reduce importance of OH&S. Performance management risks of injury, illness and WorkCover claims. and development School holiday program Regular hazard audits of DOI workplaces were The DOI performance management and conducted over the year to ensure that staff DOI runs a work-based school holiday development system is integrated to the VPS are not being exposed to unnecessary risks program for its people during Christmas and Career Structure. The system is an essential in the office. term holidays, and subsidises the costs of tool at all levels to improve organisational A total of 11 WorkCover claims were accepted the program. performance by linking and aligning individual, for 2003–04. The majority of these were minor team and organisational outcomes. The system claims having minimal impact on DOI’s insurance Flexible work arrangements identifies the need to increase capability that premium. The Human Resources Management DOI has committed itself to the consideration has placed an even greater emphasis on Branch continues to work with line areas to of flexible working arrangements, including performance management and development. facilitate early return to work for all employees working from home. Assistance is provided sustaining an injury in the workplace. to DOI people and managers by the Human DOI’s Employee Assistance Program has been Resources Management Branch in establishing utilised by staff over the year and is considered working from home and other flexible working an effective early intervention strategy that has arrangements. contributed to reducing stress claims and Staff Consultative Committee addressing other workplace issues. The Staff Consultative Committee continued Selecting on merit to be a forum for encouraging and promoting DOI’s Anti-discrimination Policy and Guidelines workplace relations based on communication ensure that all employment decisions are based and cooperation. The committee played an on merit. Merit and equity principles are important role in considering the impact of enshrined in DOI’s Recruitment Policy and the 2004 enterprise agreement and the pay Guidelines. and classification structure. The Committee will continue to operate as a sounding board for future workplace initiatives and their impact on DOI employees. 148 DOI Annual Report 2003–04

Freedom of Internal Audit National Information Committee Competition Policy

The Freedom of Information Act 1982 gives the DOI’s Audit Committee was established to DOI has complied with the requirements of public a right of access to documents held by oversee and advise on matters of accountability, National Competition Policy and is continuing government departments. areas of risk and internal controls affecting the to report to DTF as required regarding operations of the department. The Committee is implementation. For the period 2003–04, DOI received also an important element of DOI’s compliance 349 applications. Of these requests, 115 were with the Victorian Government’s Financial from Members of Parliament, 37 from the media Management Compliance Framework currently and the balance were from the general public. being implemented across all departments. Of the total requests received by DOI, 28 went Disclosure of Major to Internal Review, with six progressing to the The main responsibilities of the Audit Committee appeal stage at the Victorian Civil and are to assist the Secretary and Ministers in Contracts Compliance Administrative Tribunal (VCAT). fulfilling their governance responsibilities for exercising due care, diligence and skill and to DOI has disclosed all contracts greater than Access to documents (as defined in section 5 provide independent assurance and oversight $10 million in value which it entered into of the Act) may only be obtained through with respect to: in 2003–04. written request as detailed in section 17 of the Freedom of Information Act 1982, addressed to: • overall governance framework within DOI, The disclosed contracts can be viewed on including the agencies over which it has www.tenders.vic.gov.au/contracts Freedom of Information Manager responsibility Department of Infrastructure GPO Box 2797Y • compliance with statutory requirements, Melbourne, Victoria 3001 including applicable laws, regulations, Telephone (03) 9655 6380 and accounting standards Email: [email protected] • maintenance of a system of internal control and risk management • review of DOI’s financial management and reporting practices • fostering an ethical culture of transparency and accountability • DOI’s relationship with the Auditor General • any other matters referred to it by DOI in the areas of audit, governance and processes. The Committee approves the scope of the outsourced internal audit function and ensures that its resources are adequate and used effectively. As at 30 June 2004, members of the Committee were: Peter Lewinsky (Chair), Ian Gaudion, Peter Harris, John Rogan (appointed January 2004) and Bob McDonald. Mr Lewinsky and Mr Gaudion are independent members; Mr Harris, Mr McDonald and Mr Rogan are departmental members. DOI’s audit services are provided by RSM Bird Cameron. Appendixes DOI Annual Report 2003–04 149

Consultancies

The following table lists the consultants engaged in 2003–04 where the cost of engagement was $100,000 or greater.

Consultants Project Total Expenditure Future approved 2003–04 expenditure project fee BDO Consulting Pty Ltd ICT Industry/ Higher Education Partnerships 165,000 139,194 25,806 Charles River Associates Review of energy pricing arrangements and Network (Asia Pacific) Pty Ltd Tariff Rebate scheme 495,000 0 495,000 Earth Tech Engineering Pty Ltd Navigation Aid and Boating Safety Signage Audit in Victorian Waters 241,920 242,668 0 4tel Pty Ltd Advisory Services to Support the Development of a Comprehensive ICT Strategy for the Victoria Public Transport Sector 379,500 302,279 3,256 Geoff McCormick, Barrister Legal Services for COAG Energy Market Reform 330,000 193,050 136,950 Hassell Architects Architectural Master Plan for Public Sector Comparator for the Showgrounds Redevelopment 361,152 361,152 0 KPMG Technical adviser to support the Briquette Supply Coordination Task Force 400,000 244,595 0 Network Economics Consulting Group Industry Structure and Market Conduct legislation in the Victorian Energy Market 100,000 30,030 0 Ove Arup Pty Ltd Development of a Comprehensive ICT Strategy for the Victorian Public Transport Sector 251,746 88,847 0 Parsons Brinckerhoff Australia Pty Ltd Review of Security Risk Management in Victoria's Energy Industries 302,656 304,750 0 Root Projects Victoria Business Case Development for Public Sector Comparator for the Showgrounds Redevelopment 138,600 116,000 22,600 Saturn Corporate Resources Pty Ltd Greenhouse Challenge for Energy Project – Technical Services 200,000 128,700 17,329 Smart Internet Technology CRC Pty Ltd Future trends in community uptake of the Internet 108,405 108,405 0 The Allen Consulting Group Economic Adviser for Energy Market Reform 250,000 149,407 0 The Greenhouse Challenge for Energy Study 495,000 482,680 0 Trevor Lloyd Strategic Advice on Departmental Executive Processes 495,000 39,198 150,802 URS Australia Pty Ltd Coordination of the Environmental Effects Study for the long-term Containment Facility 385,000 367,671 71,300 Internal Audit Services – Safety Audit 165,000 88,000 166,730

In addition, a further 60 consultancies where the total fees payable to the consultant was less than $100,000 were engaged during the financial year at a total cost of $2,031,670. Total approved project fees and expenditure for 2003–04 includes GST. 150 DOI Annual Report 2003–04

Whole-of-government reporting framework – Multicultural Affairs

Background Key strategies and initiatives to continuing tolerance, goodwill and understanding among all groups. The Government’s multicultural policy – Valuing Human Resources Cultural Diversity – outlines the foundations for • In the 2003–04 graduate intake, an estimated DOI is committed to respecting cultural diversity supporting Victoria’s diverse community and 35 per cent of graduates employed by in the workplace, and in all its dealings with promoting a socially cohesive society through: VicRoads were from culturally diverse stakeholders and the community. DOI has in backgrounds. This assessment is based • valuing diversity place a range of Human Resources policies, on information provided voluntarily by guidelines and strategies to foster and support – fostering a community which recognises graduates after they started employment, diversity in the workplace, including the Policy the values and benefits of a culturally rich including details of birthplace, language for Managing and Valuing Diversity, Policy and and diverse society spoken at home and ancestry. Guidelines for the Prevention of Discrimination, – actively promoting respect and harmony and Policy and Guidelines for Racial and • The Diversity Plan, which is part of the and discouraging racism and negative Religious Tolerance. DOI People Strategy 2004–06, includes a stereotypes performance requirement for managers to In addition to the policies and guidelines introduce initiatives into the workplace that • reducing inequality outlined above, DOI continues to implement celebrate and increase diversity. DOI will a range of initiatives to support and foster – recognising the right of persons of also deliver diversity and cultural awareness a culturally diverse workplace. diverse national, ethnic, religious and programs for staff, and provide information linguistic backgrounds to practise, enjoy These include: sessions and training to assist staff and and share their own culture managers to prevent bullying or harassment • reviewing grievance and anecdotal in the workplace. – having in place systems and procedures performance management issues to ascertain that will enable all Victorians access to issues perceived as arising from intolerance • DOI continues to collect data about internal government services and programs free of difference complaints relating to alleged discrimination from undue impediment and all grievances, and reports its findings • analysis of issues taken by individuals to the Office of Public Employment (OPE). – ensuring government policies and to tribunals such as VCAT, the Australian strategies are responsive to all Victorians Industrial Relations Tribunal and the Human • VicRoads commissioned a study called, • encouraging participation Rights and Equal Opportunity Commission Workforce Diversity at VicRoads, to relating to intolerance of difference investigate key issues within diversity – encouraging an inclusive society that management, including the benefits of provides opportunities for all people to • reviewing recruitment policy and practice, workforce diversity and how it works in fully participate in public and civic life. to ensure DOI is capturing the broadest practice. The report made a number of possible group of potential employees. This report provides a summary of the activities recommendations which are being undertaken by DOI to support Victorians from VicRoads has policies and guidelines on Equal progressively implemented. These included non-English-speaking backgrounds, in line Employment Opportunity (EEO), harassment the delivery of broad diversity training as with the Government’s multicultural policy. and investigation of misconduct by employees, part of the Human Resources strategy, a which discourage racism and promote tolerance focus on the promotion of opportunities in and harmony. Training programs are provided to staff selection, as well as greater structural reinforce that VicRoads’ workforce is reasonably flexibility to encourage a more diverse diverse. One aim is to employ a wide range workforce. of people to provide registration and licensing services to the public. This promotes harmony Customer service and information and helps to provide better services to people DOI and its agencies, including VicRoads, with English as a second language. provide multilingual and translator services on all substantial public information documents Outcomes and performance and during major public consultation and • On 19 March 2004, DOI celebrated Harmony education processes where the target audience Day as part of Cultural Diversity Week, is of a culturally diverse nature. Training is also an initiative which was widely promoted provided, and systems put in place, to enable throughout DOI. Harmony Day is a Common- customer service staff to address the needs wealth initiative begun in 1999 that provides of people from non-English speaking Australians with an opportunity to think backgrounds. Specific examples during about our community’s success as a 2003–04 include: multicultural society and to recommit Appendixes DOI Annual Report 2003–04 151

Telephone services in languages Boat operator licence tests in languages Participation, education and other than English other than English recognition The Multilingual Information Line (MIL) VicRoads provides recreational boat operator TravelSMART Communities Program is a telephone service established by DOI as licence tests in four languages other than Community consultation started in the Darebin a vehicle to reach its multicultural audience. English. These tests are carried out on behalf Local Government Area (LGA) in April 2004, for The MIL allows information relating to DOI of MSV. a large-scale TravelSMART Communities pilot projects to be recorded and accessed in 13 Approximately 150 Boat Operator Licence tests project. languages – Arabic, Cantonese, Croatian, Greek, were conducted in languages other than English Italian, Macedonian, Polish, Russian, Serbian, This travel demand management initiative aims during 2003–04. The decrease in the amount Spanish, Turkish, Vietnamese and English. to engage with and educate residents in of tests taken in other languages compared 30,000 households, to encourage them to VicRoads’ Call Centre provides telephone services with the previous year reflects the overall drop voluntarily change their travel behaviour and in languages other than English through the in boat operator licences issued. This decrease choose alternative means of travel instead of use of a Translating and Interpreting Service was expected due to the high initial take-up using private motor cars. (Commonwealth Department of Immigration when mandatory licensing was introduced. and Multicultural and Indigenous Affairs) Given the culturally diverse population of MSV distributed approximately 200 Victorian as required. Darebin LGA, a significant proportion of the Recreational Boating Safety Handbooks in eight households being approached are from non- Metlink customer information languages other than English: the main language English-speaking backgrounds. Core project requests were for Chinese, Italian and Greek. Metlink is responsible for the provision delivery requires successful contact with these of network-wide customer information Outcomes and performance households, and the delivery contractor is services, and is working to improve access required to employ multilingual telephone and to information on public transport for • In May 2004, Metlink introduced a doorknock staff. non-English-speaking customers. translation service for public transport enquiries in 10 languages other than Novice Driver Kits Customer service charters English. The interpreter service means public The Novice Driver Kit contains the Road to Solo The public transport franchise operators’ transport telephone enquiries can be asked Driving and Getting There from Ls to Ps Customer Service Charters detail their commit- and answered in Arabic, Chinese, Croatian, handbooks. The kit is available in 12 languages. ment to passengers travelling on public transport Greek, Italian, Macedonian, Somali, Spanish, Road safety education services. The charters are currently being revised Turkish, and Vietnamese. due to the new partnership agreements Information sessions were held in the north- • Metlink has also published three key public introduced in April 2004. eastern region, where members of specific transport brochures in these languages. ethnic communities had been identified as Tram 109 communication These brochures are Fares and Travel Guide experiencing difficulties with English while 2004, Travelling with the Right Metcard and All Tram 109 project publications include sitting the heavy-vehicle driver licence test. Travelling with a Concession Metcard. multilingual telephone lines for information The information sessions aimed to improve in languages other than English. Multilingual • The number of people using the interpreter- participants’ understanding of Victoria’s road information includes recorded messages, and assisted driver licence test service increased law requirements. Target groups included local options to speak to a project representative substantially, with 4,056 multilingual tests Iraqi males in the Shepparton area and Tongan via an interpreter are available. undertaken in 2003–04 compared to 3530 residents in Murchison. in 2002–03. The Tram 109 Boroondara Consultation brochure Ethnic safety awareness campaign includes four multilingual telephone lines • VicRoads has completed an analysis of pass tailored to meet the needs of the demographic rates for foreign-language tests for driver VicRoads’ Ethnic Child Restraint Campaign uses living along tram route 109. The Tram 109 licences, learner permits and boat operator ethnic radio stations to promote the use of information line diverts to the Call Centre licences undertaken between September child restraints and includes liaison with peer offering interpreters. 2003 and June 2004. Performance presenters from the Royal Children’s Hospital. measures based on that analysis are A campaign was conducted for Somali, Greek, Learner permit and probationary currently being investigated. This will enable Italian, Macedonian, Serbian, Arabic, Croatian, driver licence tests VicRoads to measure the success of Vietnamese, Mandarin and Turkish VicRoads provides learner permit and pro- interpreter-assisted tests, foreign-language communities. bationary driver licence tests in 20 languages handbooks and foreign-language tests. other than English. Statistics are kept for all language and interpreter-assisted tests and these statistics are regularly reviewed. 152 Whole-of-government reporting framework – Multicultural Affairs

Informing international students The pilot program will be evaluated and Case studies benchmarked against results of similar VicRoads attended the RMIT Expo for TravelSMART Schools Program – programs in other States. Qualitative and international students to provide information Southvale Primary School Pilot Project quantitative performance measurement and answer questions regarding Victorian will assess the level of participation by The TravelSMART Schools Program aims driving and licensing requirements. target community and the degree of travel- to increase the number of students walking Approximately 300 international students behaviour change. Overall outcomes will or cycling to school, rather than being driven attended the Expo. be assessed once the project has been fully in private cars. A key feature is the WSB Community consultation implemented. Program, which establishes routes between homes and participating schools that can Community consultation in the preparation • VicRoads translated the Starting Out Safely be shared by students. of the North Central City Corridor Strategy early childhood road safety education and North Eastern Integrated Transport Study program parent/carer materials and provided The participation rate in the WSB Program was included providing multilingual inquiry services. support for agencies working with families quite low among students from non-English- Information brochures dropped to households in CALD communities. Materials were speaking backgrounds, as their parents were and businesses contained referrals to these produced, promoted and disseminated finding it difficult to access or understand services. in five languages. information about the initiative. The aim was to provide all people with Approximately 200 early childhood education DOI funded a pilot program at Southvale a potential interest in the studies with the centres have ordered child/parent materials, Primary in Noble Park to establish a community opportunity to participate in their development. and around 25 municipalities and child-care gathering and meeting place at the school, Languages used in the brochures and telephone centres have ordered parent materials. which has a large proportion of students from services were aligned with the ethnicity of the non-English-speaking backgrounds. The • In line with other Australian States and study area. The following culturally and meeting place aimed to provide parents with Territories, VicRoads recognises 22 other linguistically diverse (CALD) groups were a place where they could meet each other and countries with similar licence testing covered: Arabic, Cantonese, Croatian, Greek, interact with the multilingual coordinator of requirements for the purposes of gaining Italian, Macedonian, Polish, Russian, Serbian, the school’s travel plan. This aided information a Victorian Driver Licence. Croatia Spanish, Turkish and Vietnamese. provision and encouraged them to become and Singapore were added to the list involved in the travel plan and the WSB Program. Connecting Victoria strategy of recognised countries during 2003–04. The ICT strategy, Connecting Victoria, commits • The Office of the Public Transport Industry Performance the Government to ensuring that all Victorians Ombudsman was established in April 2004 The school has recorded a demonstrable are able to enjoy the benefits of online tech- to provide the public with access to increase in participation in the WSB Program nology. Implemented by MMV as part of this an independent complaints-handling and other aspects of the school community strategy, Connecting Communities is the mechanism for issues relating to Victoria’s by parents and students from non-English- Government’s framework for using technology transport operators. An interim ombudsman speaking backgrounds. This includes the creation to create and strengthen communities. was appointed and, subsequently, a full-time of a new WSB route servicing 20 children, in Connecting Communities specifically targets appointment has been made. Customers are addition to routes already in operation. The technologically disadvantaged members of the able to refer issues to the Public Transport pilot began in May 2004, so the final outcomes community, including people from non-English- Industry Ombudsman if they are dissatisfied are yet to be assessed. speaking backgrounds. with the initial handling of a complaint. Robinvale ethnic road safety program Outcomes and performance • As part of the Connecting Communities framework, the Government released the VicRoads provides funding for Roadsafe • TravelSMART Communities Pilot Project – i@directory. This provides information about Community Safety Councils to conduct road DOI worked closely with the local municipality public Internet access locations across Victoria safety programs across Victoria. Roadsafe, to identify language ‘pockets’ within the and an online guide on how to use in partnership with local police, municipalities community and tailored a contact strategy the Internet. This guide is available in and other community stakeholders develops accordingly. More than 90 per cent of the 11 languages, including Chinese, Greek, and implements these programs at a local level. targeted households in the Darebin LGA are Spanish and Vietnamese. expected to have been successfully contacted by August 2004. Multilingual information services are being provided in Croatian, Turkish, Vietnamese, Arabic, Chinese, Italian, Greek, Macedonian and Spanish. Appendixes DOI Annual Report 2003–04 153

In 2004, Roadsafe Central Murray, together Forward priorities TravelSMART Communities – with their local partners and VicRoads, won large-scale demonstration program Code of Conduct for Authorised Officers the prestigious TAC Award for the program This two-year travel demand management ‘Ethnic Road Users – Robinvale’. This award A new Code of Conduct has been developed for initiative was funded in the 2004–05 State was assessed on the program’s ability to address Authorised Officers to meet current community Budget and follows earlier pilot projects in key local road safety problems, innovation, multi- expectations for civil and courteous service and Darebin and Alamein. It will target 50,000 action approach, its overall effectiveness and high standards of competence and integrity residential households in Melbourne’s inner how well it can be applied to other communities. across all the modes of public transport on a suburbs. It is anticipated the target area will consistent basis. Importantly, it requires officers Robinvale, near Swan Hill, has just over 2,000 include a high proportion of multilingual to be respectful at all times and to use common- residents living in the town and 6,000 in the households. sense in their approach. overall district. Residents in this small community The program aims to change residents’ travel represent 40 different ethnic groups. In 2002, The Code of Conduct includes the development behaviour and increase public transport use, all five road fatalities recorded in the Swan Hill of a new training program for Authorised and also generate environmental and lifestyle Rural City Council boundaries were from the Officers addressing issues relating to the needs benefits such as reducing traffic congestion Asian community in Robinvale. The ‘Ethnic of special groups including young people, and emissions, and improving personal health Road Users’ program identified the main causes seniors, people with disabilities, tourists and wellbeing. of the accidents and targeted the three main and visitors, and people from different ethnic Asian language groups living in the area – backgrounds. This training program will Horn of Africa communities road Vietnamese, Thai and Khmer – in order to be completed early in 2005. safety education convey simple, fundamental safe driving Customer Service Charters Roadsafe Central Murray, in conjunction with the messages to these communities. Murray-Mallee Training Group, are preparing a The revised Public Transport Customer Service road safety education program for a number of In 2003, there were no road fatalities from Charters will be available from late 2004, on migrants from Horn of Africa countries such as these three communities in the district and request, in 13 languages – Arabic, Croatian, Ethiopia, Eritrea and Somalia, who are moving local police reported a 20 per cent reduction French, Italian, Japanese, Macedonian, Maltese, to the Swan Hill area. in traffic infringements by the target groups. Mandarin, Polish, Serbian, Spanish, Turkish and The program is being rolled out to other Vietnamese. language groups in the Robinvale area. School speed zones – secondary campaign Research undertaken following the initial school speed zones advertising campaign indicated high awareness of new speed zones, however, there was some confusion about the different types of zone. A secondary advertising campaign will be undertaken to build on the initial awareness campaign. The secondary campaign will include advertising in ethnic media. Australian Road Rule Amendments The implementation of Australian Road Rule Amendments and any other major road law changes will involve specific promotion to reach ethnic communities. 154 DOI Annual Report 2003–04

Whole-of-government reporting framework – Women

Background Key strategies and initiatives Thirty-five per cent of those employed in the 2003–04 graduate intake were women, and Gaining ground for Victoria’s Women is the Human Resources 23 per cent of the engineering graduates were Government’s policy for improving the position DOI People Strategy 2004–06 female. The latter figure is more than double of women in the Victorian community. The the proportion of women graduating with policy’s key elements are: The DOI People Strategy 2004–06 was engineering degrees in Victoria. developed during 2003–04 and is being • representation and equity implemented during 2004–05. The People VicRoads’ workforce currently comprises – ensure women are well-represented Strategy is based on feedback from DOI staff 31.2 per cent women and 68.8 per cent men. in leadership and decision-making and will endeavour to improve job satisfaction In 2002–03, women comprised 29 per cent • education, work and economic across DOI by addressing three key areas: of the workforce. The involvement of women at Executive Officer level has also increased independence • building capability on the previous year, up to 19.4 per cent from – support employers and employees • motivating people to achieve 17.5 per cent in 2002–03. to better balance work and family • better people management. commitments and increase women’s Management scholarship participation in the workforce An important element is the Diversity Plan, There are still relatively few women in senior which includes a Plan for Women within DOI. – ensure women are provided with management roles in the public and private choices in education and training that DOI’s workforce as at June 2004 comprised sectors of the freight, logistics and marine take account of the diversity of women 55 per cent men and 45 per cent women. industries. More women are now choosing In June 2003, women made up 44 per cent tertiary courses relevant to these industries; • health, wellbeing and community of the workforce. The proportion of women to however, there remains a traditional focus on strengthening men in Executive Officer positions in June 2004 recruiting and training men for senior roles. – improve the health and wellbeing was 20 per cent and 80 per cent respectively. In 2003, DOI continued its support for the of Victorian women annual Women in Freight, Logistics and Marine School holiday program Management Scholarship ($10,000 a year), • justice and safety DOI runs a work-based school holiday program which aims to encourage women to take up – reduce the fear of violence for women. during the summer and term holidays and management positions within these industries. subsidises the cost of the program for employees This information outlines the main initiatives Safety and customer service undertaken by DOI during 2003–04 in relation who enrol their children to attend. DOI has to supporting women. been recognised as an ‘Employer of Choice’ in Station staffing light of this program, and the model has been As a result of the new partnership agreement taken up by other State government agencies. with Connex that started in April 2004, Child care information service an additional 31 railway stations will be staffed in the morning peak period to improve safety A child care information service and related and general customer service. advice is provided to DOI staff on the DOI Human Resources intranet site. An additional 22 stations will be staffed during the afternoon peak, on a rotating basis, Employment of women at VicRoads to enhance safety and security. This program VicRoads has a policy of employment on merit is being progressively rolled out and the first and its graduate program has ensured that the eight stations will be staffed from June 2004. workforce is reasonably diverse. Station improvements While VicRoads does not have specific programs Sixty-seven of Melbourne’s suburban rail stations for women, some business areas offer people have now been upgraded to Premium Stations the flexibility of part-time, casual and agency to provide an increased level of comfort and employment, particularly in call centres and safety for passengers. The upgraded stations customer service centres. This can be of feature: CCTV at stations, on platforms and particular assistance to women. VicRoads’ around car park entrances; staffing from first North West Metropolitan Region has a to last train seven days a week; and improved Parenting Network Support Group. A full range passenger waiting facilities, ticket sales and of parental leave, carers leave and work/life information points. balance provisions are also covered in the current Enterprise Agreement. Appendixes DOI Annual Report 2003–04 155

Connecting Transport Services Program NightRider bus services Forward priorities The Connecting Transport Services Program is NightRider bus services operate on Friday and Human Resources a significant initiative designed to improve the Saturday nights to provide late-night public DOI People Strategy 2004–06 safety and comfort of passengers transferring transport from the City of Melbourne to the between different modes of public transport following suburbs: Bayswater, Craigieburn, The DOI People Strategy 2004-06 is underpinned (including trains, trams, buses and taxis). Croydon, Dandenong, Eltham, Epping, by a Diversity Plan. The latter includes a Plan for Frankston, Melton, St Albans, Sunbury Women, which deals with the promotion and Key features of the program include the and Werribee. development of women currently employed by construction of new bus interchanges, provision DOI, as well as improving DOI’s recruitment of shelter and covered walkways, installation Public Transport Ombudsman practices to attract women to DOI, especially and upgrading of signage and lighting, provision The Office of the Public Transport Industry to the higher positions. The Plan for Women of security cameras and Disability Discrimination Ombudsman was established in April 2004 contains a number of initiatives that are currently Act 1992 compliance measures. to provide the public with access to an being implemented as follows: Safe Travel Taskforce independent complaints-handling mechanism Developing DOI women for issues relating to Victoria’s transport The Safe Travel Taskforce has been established operators. An interim Ombudsman was • As part of the DOI People Strategy 2004-06, to review safety issues, identify strategies appointed and, subsequently, a full-time a Manager Development Program specific to to improve the safety and security of public appointment has been made. Customers are DOI’s needs is being developed for implemen- transport users, and coordinate the implemen- able to refer issues to the Ombudsman if they tation by December 2004. An important part tation of these strategies across the transport are dissatisfied with the initial handling of a of this will involve managers nominating system. The Taskforce includes representatives complaint. women with potential to attend this course. from DOI, DOJ, the Victorian Taxi Directorate, Victoria Police, transport operators and unions. Safety on trains • The coaching panel is being reviewed The Safe Travel Taskforce meets quarterly to to ensure that coaches are able to work CCTV and passenger duress alarms are being review and address safety issues. effectively with women and understand fitted to all refurbished and new suburban the DOI environment, work environment Peak service taxi licences trains. The refurbishment of existing and the broader government environment. metropolitan trains, including the fitting of One hundred peak service taxi licences are being these additional safety measures, is complete • The coaching service is being reviewed released annually for a period of six years, to help and the entire program will be completed in and promoted to women at Executive increase the number of taxis on the road during 2005 with the delivery of the final train in the Officer and VPS GR6 level. Each Executive periods of peak demand and late at night. current new train program. Director (ED) will nominate a set number The new licences are available for use between of women for this each quarter. 3.00 pm and 7.00 am and during specified Outcomes and performance major events. • The DOI mentoring program has been • The $20 million five-year Connecting reviewed and refreshed to create more SmartBus Transport Services Program began in interest and to better communicate its As part of an innovative program known as 1999–2000 and is substantially complete. benefits. The Secretary and EDs will mentor SmartBus, a range of new and improved bus Work has been completed at 79 of the two people each, at least one of whom services have been introduced along Springvale 83 sites in metropolitan, regional and rural will be a woman. and Blackburn Roads in Melbourne’s eastern locations. • When jobs are advertised, the Human and south-eastern suburbs. • The first peak service taxi cabs began Resource Management Branch and the The program includes an increased number operation in January 2003 and others are relevant manager will ensure that suitable of services, upgraded bus stops, new low-floor being progressively introduced. One hundred female applicants from DOI are encouraged buses, and timetable improvements with better peak service taxis were in operation at the to apply and that the applicant field includes connections to tram and train services. Further end of June 2004. 50 per cent of women for 75 per cent of extensions of the SmartBus program are planned • New SmartBus services have recorded sub- all positions. along Warrigal Road between Mordialloc, stantial increases in patronage (19 per cent Recruiting women to DOI Bentleigh, Hughesdale, Chadstone, Burwood, on Blackburn Road and 30 per cent on Mont Albert and Box Hill. • DOI’s executive search criteria will be Springvale Road). improved to ensure that all executive search • Approximately 70,000 passengers are using companies engaged by DOI include female the NightRider services each year. candidates in their list submitted to DOI. 156 Whole-of-government reporting framework – Women

• All job advertisements and selection criteria Health Care Card extensions are being improved to attract women and An initiative will be introduced in late 2004, to prevent indirect discrimination. extend eligibility for public transport concession • In addition to the graduate recruitment travel to all holders of Health Care Cards (except scheme (GRS) run centrally by DPC for where the card is held by an adult in the name generalists, DOI is also developing its own of a minor). This change will increase the GRS for technical graduates in science number of people eligible for concession travel engineering and technology (SET) and by an estimated 230,000. Concession fares construction. The aim is for this GRS to recruit provide a 50 per cent discount on public 50 per cent female graduates in each intake transport costs. and for it to be linked to DOI’s proposed Health Care Card holders who will benefit from scholarship and tertiary mentoring programs. this change include people in the following • The DOI induction program is being fully categories: low income, partner allowances, reviewed and refreshed to include content on partnered parenting payment, family tax benefit, the Diversity Plan so that it is understood and and mobility allowance. implemented at all levels of the organisation. • DOI is extending its current scheme of Freight, Logistics and Marine scholarships for women, to cover women in SET and construction project management. Public transport safety An additional 100 frontline customer service staff will be progressively introduced to the metropolitan train network from early 2005. This will enable the deployment of additional safety officers to travel on metropolitan trains from 9.00 pm until the last train to ensure greater safety for passengers. This will take the number of customer service staff on metropolitan trains to 200. In addition to the 100 customer service staff that currently travel on the tram network, an additional 50 customer service staff will be provided as part of the partnership agreement with Yarra Trams. These additional staff will be progressively introduced to the system from late 2004. Customer service staff will also be introduced on evening tram services through to the last tram to improve safety and security for the travelling public. Station improvements Under the new public transport partnership agreements, upgrades of car parks are being undertaken during 2004–05 at the following metropolitan railway stations: Frankston, Werribee, Albion, Berwick, Narre Warren and Huntingdale. Appendixes DOI Annual Report 2003–04 157

Whole-of-government reporting framework – Youth

Background Key strategies and initiatives Nightrider and community loop buses The major aims of the Government’s youth Human Resources NightRider bus services have been introduced policy, Respect: The Government's Vision for on Friday and Saturday nights to provide late- DOI Youth Employment Scheme Young People, are: night public transport from the city of DOI has in place a robust and successful Melbourne to the following suburbs: Bayswater, • involvement Youth Employment Scheme (YES), providing Craigieburn, Croydon, Dandenong, Eltham, – to expand opportunities for young traineeships to approximately 35 young Epping, Frankston, Melton, St Albans, Sunbury people's real and active participation people per year. and Werribee. in their communities Youth employment at VicRoads Community loop bus services have been • learning and work VicRoads employs between 40 and 55 graduates introduced between Cranbourne and Cran- – to develop sustainable pathways every year. Graduates undertake three six-month bourne East and Epping and South Morang in education and employment learning and development rotations in different to meet all arriving and departing trains and to provide better connections between • support parts of the organisation. VicRoads also stations, shops and key activity centres. participates in DOI’s YES, hosting 22 young – to support positive health and people through the scheme in 2003–04. Improved school bus safety wellbeing outcomes More than 90 per cent of new graduates The five-year Rural School Bus Safety Program • celebrate remain employed with VicRoads for more has been completed. The Program involved than three years. – to celebrate and promote young improving the safety, comfort and convenience people's involvement in decision-making Safety and Access – Public Transport at bus interchanges for primary and secondary and community building. school students in regional Victoria. Works Concession fares carried out under the Program were wide- The following information outlines the main Concession fares for travel on public transport ranging and included constructing new bus activities under way in DOI to support are available to children under the age of 15 interchanges, bus shelters and covered Victoria’s young people. and to students in possession of a Primary/ walkways, and carrying out road improvement Secondary or Tertiary Student Concession Card. works to increase bus safety. Primary/Secondary student cardholders are Premium stations entitled to purchase heavily discounted half Sixty-seven of Melbourne’s suburban rail stations yearly or yearly student passes for travel on have now been upgraded to premium stations the metropolitan public transport network that provide an increased level of comfort and and major country bus networks. Date-to-Date safety for passengers. Improvements include tickets for travel on the V/Line country network the provision of CCTV on the station, on are also available to holders of the Primary/ platforms and around car-park entrances; Secondary Concession Card. The Tertiary staffing from first to last train seven days a week; Student Concession Card entitles students and improved passenger waiting facilities, ticket attending tertiary institutions to purchase sales and information points. concession tickets. Safer trains SmartBus CCTV and passenger duress alarms are being The SmartBus program has led to a range of fitted to all refurbished and new suburban trains. new and improved bus services being introduced along Springvale and Blackburn Roads in Melbourne’s eastern and south-eastern suburbs. The program includes an increased number of services, upgraded bus stops, new low-floor buses, and timetable improvements with better connections to tram and train services. Further extensions of the SmartBus program are planned along Warrigal Road between Mordialloc, Bentleigh, Hughesdale, Chadstone, Burwood, Mont Albert and Box Hill. 158 Whole-of-government reporting framework – Youth

Connecting transport services improved Epping–South Morang service was VicRoads provides extensive and comp- introduced in December 2003 and has rehensive support programs to increase The Connecting Transport Services Program aims resulted in weekly patronage increasing low-risk supervised learner driving practice, to improve the safety and comfort of passengers from approximately 700 passengers to 1,900. including Keys Please sessions, the Getting transferring between different modes of public There from Ls to Ps guide, and The L Site transport (including trains, trams, buses • Approximately 70,000 passengers are using interactive web site. and taxis). Key improvements funded by the the NightRider bus services each year. program include the construction of new • Bus service enhancements were introduced Outcomes and performance bus interchanges, provision of shelter and to Eltham/Research/Warrandyte and covered walkways, installation and upgrading • In 2003, there were 781 fewer young Endeavour Hills in September 2003, of signage and lighting, provision of security drivers aged 18–25 years involved in casualty and have resulted in total weekly patronage cameras and Disability Discrimination Act 1992 crashes than in 1999. The casualty crash increasing by 7 per cent and 5 per cent compliance measures. involvement rate per 10,000 population respectively. for 18–21-year-old drivers dropped from Safe Travel Taskforce • The Victorian public transport bus fleet 174 in 1999 to 150 in 2003. The Safe Travel Taskforce has been established has already met the 25 per cent accessibility • VicRoads reviewed the graduated licensing to review safety issues, identify strategies target required by 2007 under the Disability arrangements during 2003–04, with to improve the safety and security of public Standards for Accessible Public Transport. significant outcomes including: transport users of all ages and backgrounds, • Upgrades have been completed at 123 school and coordinate the implementation of these – recommending lower demerit points bus interchange locations and over 600 strategies across the transport system. for P plate drivers. The legislative school bus stops under the Rural School The Taskforce meets quarterly and includes amendment for this was implemented Bus Safety Program. representatives from DOI, DOJ, the Victorian in December 2003 • The refurbishment of existing metropolitan Taxi Directorate, Victoria Police, transport – a commissioned review by Monash trains including the fitting of CCTV and operators and unions. University’s Accident Research Centre passenger duress alarms is complete and Bus Replacement Program into what research exists worldwide into the entire program will be completed in graduated licensing Under the Bus Replacement Program, new 2005 with the delivery of the last rolling buses are introduced that meet the accessibility stock in the current new train program. – a comprehensive analysis of key crash requirements of the Disability Discrimination risks among young drivers and possible Safety and access – roads Act 1992 and Disability Standards for accessible graduated licensing measures to address Public Transport. The Program results in, Young driver road safety and licensing these, which is still in progress. on average, 100 school, 90 metropolitan arrangements • Quantitative performance measures are and 25 regional buses being replaced each year. In 2003, 24 per cent of all driver deaths used to assess the reach of the Keys Please in Victoria comprised young people aged program into Victorian secondary schools. Outcomes and performance 18–25 years, even though they account An improved program was implemented • There are currently 72,000 Primary/ for only 13 per cent of licensed drivers. during 2003–04, and approximately Secondary and 51,000 Tertiary Student VicRoads supports local community youth road 20 per cent of the target age group Concession Cards issued each year. safety programs that work to reduce the risk attended Keys Please evening sessions. • New SmartBus services have delivered sub- to novice drivers, based on international and Local commitment has resulted in all schools stantial increases in patronage (19 per cent national evidence about which measures are in the Mornington Peninsula area presenting on Blackburn Road and 30 per cent on effective in reducing crashes and other safety Keys Please. In most rural regions, Springvale Road). incidents involving this group of road users. secondary school students in the target age group have the opportunity to attend a • The $20 million five-year Connecting Activities include: Keys Please session with their parents. Transport Services Program began in • developing and distributing the 1999–2000 and is substantially complete. Enhancing the Safety of Young Drivers • Approximately 60–70 per cent of new Work has been completed at 79 of the resource for local communities learner drivers receive Getting There from 83 sites in metropolitan, regional and Ls to Ps, and there are around 30,000 • supporting local community programs rural locations. online visitors to The L Site annually. such as ‘Fit to Drive’ • The Cranbourne–Cranbourne East service • Surveys suggest a trend of increased super- • providing resource materials to local councils, was introduced in November 2003 and has vised driving experience for learner drivers youth workers, Roadsafe community road generated a patronage base of approximately overall, with learners getting an estimated safety councils and local community groups. 2,000 passenger journeys per week. The average of 60 hours of professional and Appendixes DOI Annual Report 2003–04 159

non-professional supervised driving practice • the use of interesting and dynamic young aware of at least one element of the New in 1997, compared with an estimated women in ICT careers to act as positive role Realities campaign. The campaign increased average of 84 hours in 2000. This will models for a new generation of girls awareness of the benefits of and pathways continue to be monitored. into IT careers, with 71 per cent confident • information for teachers to assist them to about the pathways to an ICT career , and This marked increase in the amount of incorporate the messages of the New 71 per cent confident about the required accompanied driving hours being obtained Realities campaign into the general school school study to pursue an ICT career. by learners follows a range of promotional curriculum campaigns aimed at increasing awareness • The success of the TravelSMART Education • 45 written and eight MTV-style video case about the advantage of gaining more Program is determined by the level of studies profiling young women and men in supervised driving experience before taking participation among target schools and real ICT careers, and the pathways that led to the roads on solo journeys. International university students, the successful establish- them into their careers. research shows that learners who gain ment of travel plans and WSB routes at 120 hours of supervised driving exposure have TravelSMART education program participating schools, and the degree of a 30 per cent lower crash rate in their first and This travel demand management initiative change in travel choices and behaviour pre- second years of driving, compared with learner incorporates TravelSMART Schools (targeting and post-implementation of the Program. drivers who have only 40 or 50 hours’ exposure. primary and secondary school students) and – 51 schools participated during 2003–04. Education and participation TravelSMART Universities (targeting first-year This represents involvement of around university students). It aims to increase the 23,000 students. Craigieburn Bypass – number of students using alternative modes of – 33 schools are developing travel plans, School Liaison Program travel, such as walking, cycling or public and 18 are doing curriculum-based This schools program was developed in 2003–04 transport, to get to school or university rather learning programs. to be fully implemented in 2004–05 and aims than using private cars. – 6,000 first-year students from Monash to convey the social benefits of the Craigieburn TravelSMART Schools involves providing University’s Clayton Campus and La Trobe Bypass, raise community awareness and learning information that supports the school University’s Bundoora campus, registered encourage students to consider career paths in curriculum (for example, understanding the for the 2004 TravelSMART Universities construction or engineering. environmental effects of the travel choices we program. Students will be surveyed at Initial contact with local schools revealed a make each day), and encourages students to the end of the program to evaluate its high interest in participating in such a become involved in the planning process. In impact in encouraging more sustainable program, which is tailored to meet the specific secondary schools, student representative travel to and from university. curriculum requirements of each school. councils are involved in developing and implementing travel plans for their school. DOI Connecting Victoria Strategy – New Realities reviews and approves school travel plans and The Victorian Government’s Information and provides funding to assist schools in their Communication Strategy Connecting Victoria implementation. commits the Government to ensuring that all Associated activities include supporting bicycle Victorians, including disadvantaged groups, are maintenance workshops at local bike shops able to access the benefits of online technology. and establishing walking and cycling clubs. Within this strategy, the Connecting Communities framework provides a basis TravelSMART Universities offers newly enrolled for using technology to create and strengthen students information about their travel choices communities. It specifically targets and links them to support areas within their technologically disadvantaged members university and the local community. of the community, including young people. Outcomes and performance The New Realities campaign was rolled out through Victorian secondary schools from • From July 2001 to September 2003, the April to September 2003. The campaign was highly successful New Realities campaign designed to promote ICT skills and ICT careers promoted ICT skills and careers to more to Years 9 and 10 students and included: than 40,000 young people from more than 370 Victorian secondary schools. • presentations in conjunction with guest industry representatives on technology The overall program evaluation found that careers to secondary school students across exposure to the campaign among students regional and metropolitan Victoria was high, with 77 per cent of students 160 Whole-of-government reporting framework – Youth

Forward priorities staffing at stations used by students. This • providing high-standard customer service to program is being progressively rolled out public transport passengers including travel Learner driver awareness and the first eight stations will be staffed advice and assistance VicRoads is developing strategies to increase from June 2004. • improving safety and security on public the reach of the successful Keys Please Safety on trains and trams transport program that targets learner drivers in the 15–16 year old age group. The ultimate aim is An additional 100 frontline customer service • providing a deterrent to fare evasion, for the program to eventually reach Year 10 staff will be introduced onto the metropolitan vandalism and anti-social behaviour train network from early in 2005. This will students throughout the State. • ensuring that the highest degree of integrity enable the deployment of additional safety Young driver safety review and professionalism is maintained at all times. officers to travel on metropolitan trains from VicRoads will complete the review of graduated 9.00 pm each night until the last train, to The Code of Conduct includes the development licensing arrangements and new measures to ensure greater safety for commuters. This of a new training program for Authorised improve young driver safety. will take the number of customer service Officers addressing issues relating to the needs of special groups including; young people, Reducing public transport costs for tertiary staff on metropolitan trains to 200. seniors, people with disabilities, tourists and students In addition to the 100 customer service staff visitors, and people from different ethnic that currently travel on the tram network, The cost of a Tertiary Student Concession Card backgrounds. This training program will an extra 50 customer service staff will be will be reduced from the current $87.00 a year be completed early in 2005. for metropolitan students and $29.00 for provided as part of the partnership agreement TravelSMART Education – country students to the same level as the cost with Yarra Trams. Customer service staff will Congestion Precinct Pilot of the Primary/Secondary Student Concession also be introduced on evening tram services Card (currently $8.00 for a full year). These through to the last tram to improve safety The existing TravelSMART Education Program concession cards entitle holders to concession and security for the travelling public. These will be extended to focus on reaching school fares on public transport. new staff will be progressively introduced children, their parents and teachers in selected to the tram network from late 2004. western and eastern suburban areas of This initiative will provide: Improved public transport for New Year’s Eve Melbourne that are facing increasing issues • significantly reduced public transport costs with traffic congestion. for 51,000 existing Tertiary Student All-night New Year’s Eve train services will be The pilot will aim to achieve a greater proportion Concession Card users provided on all metropolitan routes, and tram services will run until 2.00 am, with NightRider of schoolchildren who walk or cycle to and from • savings for the 28,500 students who use buses to run half hourly services all night. school each day, reducing reliance on the use public transport but who do not purchase a Incentives will also be provided to encourage of private cars, and thereby generating a range concession card to obtain concession fares taxi drivers to operate on New Year’s Eve. of environmental and health and fitness benefits. as opposed to full-fare travel This initiative is in response to increased demand • a major incentive for the 92,500 students from the community for additional public trans- who do not currently use public transport to port services across a wider time frame to cater now use it at concession fare rates. for people attending New Year’s Eve activities The new concession entitlements for qualifying in central Melbourne and suburban areas. tertiary students are planned to come into effect Code of Conduct for Authorised Officers from January 2005. There are a number of students who have the Low Income Health Care A new Code of Conduct for Authorised Officers Card who will not be required to purchase a has been developed to meet current community Tertiary Student Concession Card due to the expectations for civil and courteous service and planned extension of eligibility of public trans- consistently high standards of competence and port travel to all holders of Health Care Cards. integrity across all the modes of public transport. Importantly, it requires officers to be respectful Station staffing at all times and to use commonsense in their An additional 31 stations will be staffed in approach. the morning peak period to improve safety The Code of Conduct is designed to meet the and general customer service, and an additional following objectives: 22 stations will be staffed during the afternoon peak, on a rotating basis, to enhance safety and security. A focus will be on providing Appendixes DOI Annual Report 2003–04 161

Whole-of-government reporting framework – Indigenous Affairs

Background Key strategies and initiatives Monitoring by Indigenous people The Government’s policies for improving Human Resources Various Aboriginal groups monitor significant support for Indigenous communities focus on improvement works being carried out by DOI’s Indigenous Employment Plan the following key issues: VicRoads, which involve disturbing previously The key commitment for DOI in relation undisturbed ground. Examples include: • health and wellbeing to the Victorian Indigenous community is • Murchison East Deviation on the Goulburn • community care, child protection and justice the Indigenous Employment Plan, which was Valley Highway • education (including non-formal learning developed as a key element of the DOI Diversity • Calder Highway near Ravenswood and development) Plan. DOI has begun implementing the Diversity Plan, taking into account the whole-of- • Blackall Creek Bridge, Stratford • economic participation. government Indigenous Employment Strategy • Princess Highway east (near Orbost, The following information summarises the coordinated by the OPE. 424 km east of Melbourne) main initiatives DOI is implementing to address Wur-cum barra – Indigenous • Morass Creek Bridge, Benambra- some of these issues. Employment Strategy Corryong Road. DOI has committed to employ six Indigenous Safety awareness programs for employees under the Wur-cum barra Strategy Indigenous people and has been actively involved in all working groups on the strategy through the OPE. VicRoads has programs to educate Indigenous people, in order to reduce passenger injury Consultation, education and crashes. The Starting Out Safely road safety participation program was implemented in Koori pre-school VicRoads and MSV are the agencies in the and child-care centres in the eastern region. Infrastructure portfolio which have the most This is a three-year rolling program. significant degree of consultation with Acknowledgement of Indigenous concerns Indigenous organisations and communities. These agencies have in place processes for VicRoads has signed a General Area Agreement consulting and engaging with Indigenous with the Yorta Yorta Nation Aboriginal communities. MPV also considers Indigenous Corporation, covering north-central Victoria. issues when determining where to locate The agreement was signed in December 2003 infrastructure projects. and sets out general principles between VicRoads and the Yorta Yorta people for Indigenous VicRoads consultation, cultural heritage protection, and In direct consultation with local Indigenous targeted resourcing in relation to all VicRoads communities, VicRoads has developed protocols projects in the agreement area. Under the and agreements for the management of Native agreement, VicRoads is taking account of Title and Indigenous cultural heritage matters Indigenous concerns in the development of that arise during the planning and construction a new bridge over the Murray River at Echuca. of road projects. Marine Safety Victoria VicRoads also works with a number of Aboriginal MSV is responsible for ensuring there is an bodies in the fields of Native Title and cultural effective response to marine pollution incidents heritage as follows: in State waters. Through the development of • Native Title Services Victoria Regional Marine Pollution Contingency plans, • Native Title claimant and traditional owner MSV has put arrangements in place for groups (including the Yorta Yorta Nation designated Control Agencies to be appointed Aboriginal Corporation) to respond to incidents within their areas of responsibility. • local Aboriginal cooperatives (for example, Wathaurong Aboriginal Co-operative, There is a requirement that AAV be notified Wurundjeri Tribe Land Compensation at the earliest opportunity in the event of and Cultural Heritage Council) the occurrence (or likelihood of occurrence) of marine pollution incidents where it is • Aboriginal Affairs Victoria (AAV) Aboriginal considered that pollution will impact on the cultural heritage program regions shoreline (necessitating foreshore clean-up 162 Whole-of-government reporting framework – Indigenous Affairs

action). Responsibility for contacting AAV Forward priorities Health Care Card extensions rests with MSV or the agency controlling Indigenous Employment Strategy An initiative will be introduced in late 2004, to the response. implementation extend eligibility for public transport concession AAV’s role in marine pollution clean-up travel to all holders of Health Care Cards (except DOI’s Diversity Plan contains a number of operations is to advise on actions required to where the card is held by an adult in the name initiatives relating to increasing the employment minimise the risk of ground-disturbing activities of a minor). This change will increase the of Indigenous people and supporting those that contravene State and Commonwealth number of people eligible for concession travel people once they are in the DOI workforce. Aboriginal heritage protection legislation. Once by an estimated 230,000. Concession fares notified, AAV will alert the designated Oil Spill Initiatives in the Indigenous Employment Plan provide a 50 per cent discount on public Archaeologist who will: include: transport costs. • provide information on the precise location • providing Indigenous cultural awareness Health Care Card holders who will benefit of known Aboriginal archaeological sites in training across DOI from this change include people in the the area and mark their boundaries on the • improving recruitment practices to guard following categories: low income, partner ground against the potential for indirect allowances, partnered parenting payment, family tax benefit, and mobility allowance. • survey for Aboriginal archaeological sites in discrimination the areas proposed for the construction of • making sure that recruitment agencies new access roads, associated chosen by DOI are able to provide services staging/storage areas and other ground that satisfy the goals of the Indigenous disturbing activities required for pollution Employment Plan clean-up operations. • establishing in 2004–05 an Indigenous Major Projects Victoria Tertiary Scholarship Program Hazardous Waste Siting project • participating in the cross-government The studies undertaken during site selection for Indigenous traineeship program. the Hazardous Waste Siting project have taken Road law and licensing awareness into account Aboriginal and cultural values. These values must be satisfied for the duration A large number of Koori people continue to of the project. drive without a licence. VicRoads will liaise with Indigenous groups in the eastern region to Commonwealth Games Village Site educate young people about Victoria’s road In making the site selection for the laws and to encourage them to get a driver Commonwealth Games Village, the issue of licence. The aim of the liaison program is to: Native Title was considered. A report to MPV • strengthen relationships between VicRoads from the Department of Natural Resources and and the Indigenous community Environment (dated June 2001) states that the Native Title at the Royal Park site in Parkville is • reduce the number of unlicensed extinguished by a previous exclusive possession Indigenous drivers act occurring prior to 23 December 1996. • improve awareness about Victoria’s road Connecting Victoria Strategy laws among Indigenous youth; The Victorian Government’s Information and Communication Strategy Connecting Victoria commits the Government to ensuring that all Victorians, including disadvantaged groups, are able to enjoy the benefits of online technology to create and strengthen communities. It specifically targets technologically disadvantaged members of the community, including Indigenous Victorians. Appendixes DOI Annual Report 2003–04 163

Whistleblowers Other available Victorian Industry Protection Act 2001 information Participation Policy

Report pursuant to section 104 The Directions of the Minister for Finance, In October 2003, the Victorian Parliament of the Act for the year 1 July 2003 pursuant to the Financial Management Act 1994, passed the Victorian Industry Participation Policy to 30 June 2004 requires a range of information to be prepared Act 2003, which requires public bodies and in relation to the financial year. departments to report on the implementation • The number and types of disclosures of the Victorian Industry Participation Policy This material is itemised below and, where made to DOI: NIL (VIPP). Departments and public bodies are not published in this report, is retained by the required to apply VIPP in all tenders over • The number of disclosures referred by DOI to accountable officer and can be made available $3 million in metropolitan Melbourne and the Ombudsman (to determine whether they to Ministers, Members of Parliament and the $1 million in regional Victoria. are public interest disclosures): NIL public on request, subject to the limitations • The number and types of disclosures referred of the Freedom of Information Act 1982. Contracts started to which VIPP applied: to DOI by the Ombudsman: NIL • declarations of pecuniary interests completed During 2003-4, DOI began 12 contracts • Referred by DOI to the Ombudsman by all relevant DOI officers totalling $2.27 billion in value to which the to investigate: NIL for the year ended 30 June 2004 VIPP applied. These related to metropolitan Melbourne projects. • The number and types of investigations of • details of shares held by senior officers as disclosures taken over by the Ombudsman nominees or held beneficially in a statutory The commitments by contractors under VIPP from DOI: NIL authority or subsidiary details of publications included: produced by DOI and where the publications • The number of requests by complainants • an overall level of local content of can be obtained to have their disclosures investigated by 72.7 per cent • details of changes in prices, fees, charges, the Ombudsman due to their dissatisfaction • 3,095 full-time equivalent jobs. with the way DOI is investigating the matter rates and levies charged by DOI The following benefits to the Victorian (the circumstances are set out in section 74 • details of major external reviews carried out economy in terms of skills and technology of the Act): NIL on DOI transfer: • The number and types of disclosed matters • details of major research and development • development of research and development that DOI has declined to investigate: NIL and development activities undertaken by programs with local tertiary institutions and DOI • The number and types of disclosed matters SMEs that were substantiated on investigation and • details of overseas visits, including a summary • encouragement of local technology the action taken on completion of of the objectives and outcomes of each visit the investigation: NIL development and growth • details of major promotional, public relations • upskilling of staff in safety and technical • Any recommendations of the Ombudsman and marketing activities undertaken by DOI to disciplines under the Act that relate to DOI: NIL develop community awareness of DOI and the services it provides • transfer of knowledge in a broad range of disciplines relating to the synchrotron. • details of assessments and measures undertaken to improve the occupational health There were no contracts completed in this and safety of employees period to which the VIPP applied. • a general statement on industrial relations within DOI and details of time lost through industrial accidents and disputes • a list of major committees sponsored by the DOI, the purpose of each committee and the extent to which the purpose has been achieved. Requests for information should be directed to: Mr Bob McDonald Executive Director Corporate Resources Department of Infrastructure Level 14, Nauru House, 80 Collins Street Melbourne Victoria Australia 3000 164 DOI Annual Report 2003–04

Building Act DOI major publications Compliance 2003–04

The Directions of the Minister for Finance require Transport this Annual Report to include a statement on Bendigo Fast Rail Bulletin the extent of compliance with the building and Major Projects maintenance provisions of the Building Act 1993, Track Record Building One Victoria factsheet kit for publicly-owned buildings controlled by DOI. Travel On Family Guide to Public Transport Waste Management Community Update DOI does comply with the building and main- (revised edition) tenance provisions of the Building Act 1993. Industrial Waste Management SmartBus Major Projects Report – Consolidation of Land Franchise Agreements for Public Transport Austin Mercy Newsletter September 2003 Operators Cruising Victoria, Issues 9 and 10 Energy, Industry and Resources Yarraville Community Bulletin No. 4 Energy Report – Box Ironbark Vermont South Tram Extension Network Tariff Rebate SmartFreight Information and Communication TravelSmart News August 2003 Technology TravelSmart Alamein ICT Skills Snapshot Update June 2004 North Eastern Integrated Travel Plan Strategy Connecting Victoria August, December 2003, Recreational Vehicle Fatalities April 2004 Outline of a Proposed Road Management Bill Regional Telecommunications Spend and Demand Reports Industry Intermodal Awareness Program World Class Business – Growing Victoria’s Code of Practice for Health Assessment of Rail eLearning Industry Safety Workers – Volume 1: Management Systems Corporate Code of Practice for Health Assessment of Rail DOI Annual Report 2002–03 Safety Workers – Volume 2: Assessment DOI Corporate Plan 2003–06 Procedures and Medical Criteria Health Assessments for Rail Safety Workers – A Guide to the Code of Practice and Certification for Rail Safety Workers Guideline for Rail Safety Training – Track Safety Awareness Training Improving Rail Safety in Victoria – Issues Paper for a review of the Rail Safety Regulatory Framework Rail Safety News – Issue 1 – Victorian Rail Network Safeworking Rules Reform Project Bus Safety News – Issue 1 Review of Factors Relating to Implementation of Risk Criteria in Rail Safety Management Implementation Strategy for TPWS (1st and 2nd Reports) Passenger trains return to Bairnsdale Level crossing safety for return of passenger trains to Bairnsdale Craigieburn Rail Project Appendixes DOI Annual Report 2003–04 165

DOI Environmental Performance Report: 2003–04

This environmental performance report has been prepared in accordance with the requirements set out in the ‘Financial Reporting Direction 24 (FRD 24): Reporting of Office-based Environmental Impacts by Government Departments’. It relates to DOI’s office-based activities only.

Environmental aspect Unit of measure 2003-04 actual Energy1 Use per FTE2 megajoule 11,459 Use per square metre of office space megajoule 425.8 Total use gigajoules 9167

Total associated greenhouse gas emissions tonnes of CO2 equivalent3 3,667 Total Green Power (% of total) % 4.1 Total cost of Green Power $ 4,053 Paper Use per FTE reams4 29.2 Total use reams 23,342 Transportation5 Total fuel consumption6 gigajoules7 10,062 Fuel consumption per FTE gigajoules 13.3

Total associated greenhouse gas emissions tonnes of CO2 equivalent7 735.8 Associated greenhouse gas emissions per FTE tonnes of CO2 equivalent 0.97 Total travel associated with departmental operations kilometres8 2,584,249 Travel associated with departmental operations per FTE kilometres 3,404.8 Employees regularly (>75% of time) using public transport, cycling and walking to and from work9 % 85.3 Waste10 Generated per FTE kilograms 74 Total recycled11 kilograms 25,634 Water12 Consumption per FTE litres 20,322 Total consumption litres 16,258,000

1Tenancy Light and Power at DOI operations: 80 Collins Steet, 55 Collins Street, Blackwood Street and 60 Collins Street.

2 FTE excludes: commissioners, board members, Ministers and their staff, statutory appointees, contractors, portfolio agencies, and statutory authorities. The FTE as at 30 June 2004 was 799.6

3 AGO Factors and Methods Workbook–Section B, Table 4: Emission Factors for electricity purchased/used/delivered per kWh.

4 500 sheets of A4 white and coloured office paper (1 ream A3 = 2 reams A4).

5 FTE for transport revised to exclude executives with salary-packaged vehicles.

6 Total fuel consumption for all vehicles in DOI fleet during 2003–04 (including disposed vehicles and hire vehicles), excluding salary-packaged vehicles.

7 Conversions by EPA Greenhouse Calculator.

8 Data for travel associated with departmental operations calculated based on pool, dedicated and hire vehicles only. Km and litres for hire vehicles estimated.

9 Figures obtained from TravelSMART Staff Survey Report, Autumn 2004

10 Waste data assessed from waste audits in November 2003, April 2004 and June 2004. Waste management system implemented March 2004, and the waste figures have been estimated to reflect the introduction of the new system. Waste includes landfill and recycling streams.

11 Total recycled includes compost and commingled recycling. Paper from security destruction bins and some heavy cardboard and cartridge recycling programs have been excluded.

12 DOI occupies multi-tenanted buildings. Figures are apportioned according to percentage of building occupied. Total water consumption includes base building water consumption, as well as tenant water consumption. Consumption has been estimated in some cases. Water data is based on a 12-month period, but billing period may not be concurrent with the period 1 July–30 June. 166 DOI Annual Report 2003–04

Other information 2003–04 key achievements 1. Actions taken during the year to reduce DOI implemented an Environmental energy use in buildings: Management System (EMS) during 2003–04 that was responsible for driving a number • installation of automated-lighting control of strategies and achieving a number of system for new floors occupied by DOI goals, including: within Nauru House to ensure minimal electricity consumption from lighting. This • implementation of a waste management has already been applied to the existing system that included commingled recycling DOI tenancy at Nauru House and composting, which resulted in a reduction of over 80 per cent of waste • development of intranet site featuring to landfill energy-saving tips • certification as a Waste Wise Government • awareness programs to encourage people Organisation by EcoRecycle Victoria to switch-off PCs after use • launch of the DOI Environment Policy • development of environmental purchasing and EMS and a significant increase in the considerations for appliances to include awareness of people of environmental issues energy-star ratings and power-saving features • development of an environment@doi intranet site housing environmental-related • investigations into regular electricity information reporting (per floor) to help monitor and minimise electricity consumption. • recruitment of environmental representatives to assist with environmental 2. Actions taken during the year to reduce programs energy use in DOI’s vehicle fleet: • reduction of vehicles in the pool by more • signed up to Greenfleet for a total of than 20 per cent 80 departmental vehicles • development of EMS audit procedures. • reduction of vehicles in the pool • increasing the number of liquified petroleum The year ahead gas (LPG) and 4-cylinder vehicles to ensure The EMS will continue to drive DOI’s office- that 10 per cent of the pool and dedicated based environmental performance. Planned fleets are either LPG or 4-cylinder vehicles. activities for 2004–05 include: 3. Actions taken to demonstrate environ- • continual improvement of the EMS, mentally responsible purchasing activities: including an external audit by an • now purchasing more than 90 per cent of environmental auditor appointed under the our monthly A4 paper with recycled content Environment Protection Act 1970 • development and dissemination of • energy audit and review at two main sites environmental purchasing check list to identify further ways of energy reduction • awareness through Green Purchasing • greening of the DOI fleet by introducing workshops and provision of a Green- more fuel-efficient vehicles into the fleet stationery guide to purchasing officers • greater paper reductions per person • replacement of polystyrene cups with • seeking further opportunities for waste recyclable cups reductions and/or recycling options. • working collaboratively at a whole-of- government level to investigate methods of implementing green-purchasing software/checklists. Appendixes DOI Annual Report 2003–04 167

Disclosure Index

The Annual Report of the Department of Infrastructure is prepared in accordance with all relevant Victorian legislations. This index has been prepared to facilitate identification of the Department’s compliance with statutory disclosure requirements.

Legislation Requirement Page reference Ministerial Directions

Report of Operations

Charter and purpose FRD 22 Manner of establishment and the relevant Ministers (iii), 1 FRD 22 Objectives, functions, powers and duties 1-2 FRD 22 Nature and range of services provided (iii), 1–2

Management and structure FRD 22 Organisational Structure 3

Financial and other information FRD 22 Statement of workforce data and merit and equity 145–147 FRD 22 Summary of the financial results for the year 50 FRD 22 Significant changes in financial position during the year 51 FRD 22 Operational and budgetary objectives and performance against objectives 108–137 FRD 22 Application and operation of Freedom of Information Act 1982 148 FRD 22 Compliance with building and maintenance provisions of Building Act 1993 164 FRD 22 Statement on National Competition Policy 148 FRD 22 Application and operation of the Whistleblowers Protection Act 2001 163, 178–186 FRD 22 Details of consultancies over $100,000 149 FRD 22 Details of consultancies under $100,000 149 FRD 12 Disclosure of major contracts 148 FRD 22 Statement of availability of other information 163 FRD 22 Occupational health and safety 147 FRD 15 Executive officer disclosures 93, 145, 146 FRD 8 Budget portfolio outcomes 140–144 168 DOI Annual Report 2003–04

Legislation Requirement Page reference Ministerial Directions

Financial Statements

Financial statements required under Part 7 of the FMA SD 4.2 (c) Compliance with Australian accounting standards and other authoritative 61 pronouncements SD 4.2 (c) Compliance with Ministerial Directions 61 SD 4.2 (d) Rounding of amounts 66 SD 4.2 (c) Accountable officer’s declaration 55 SD 4.2 (f) Financial statements 53–106 SD 4.2 (b) Statement of financial performance 57 SD 4.2 (b) Statement of financial position 58 SD 4.2 (b) Statement of cash flows during the year 59

Other disclosures in notes to the financial statements FRD 9 Departmental disclosure of administered assets and liabilities 103 FRD 13 Disclosure of parliamentary appropriations 78 FRD 21 Responsible person and executive officer disclosures 92, 93 FRD 23 Superannuation liabilities and disclosure 100 169

Statutory Authorities 170 DOI Annual Report 2003–04

Statutory Authorities

National Electricity Code to regulations, supply pressures, gas use in • Other project-specific campaigns during the Administrator commercial premises, consumer gas safety year included gas safety for landlords and and environmental greenhouse affects. internal gas water heaters. The NECA can administer, enforce and amend the National Electricity Code that governs the • Gas safety audits were conducted to operation of the NEM. complete the two-year program of Priorities for 2004–05 inspecting 709 public caravan parks NEMMCO and NECA were established under • The Major Events Program is an initiative throughout metropolitan, regional and Corporation Law and their annual reports are currently being developed which will result rural Victoria. The safety levels of parks published under that legislation. These bodies in a unified approach among regulators inspected were found to be generally high are not statutory authorities for which the and industry code of practice in relation to in compliance with any faults readily rectified. Minister for Energy, Industries and Resources gas use at major events. is directly responsible; however, under the • Forty-six point-of-sale locations were • Forming part of OGS communication NEM Agreement, to which Victoria is a party, audited by OGS to ensure compliance. strategy, a significant update of the OGS the minister in each jurisdiction nominates a • Conducted 33 audits to ensure public web site is a high priority. member to the boards of NEMMCO and NECA safety where LPG is used for heating and • Increased community education programs, and annually endorses their corporate plans. cooking at major events. conducted, where possible, in partnership • Industrial inspectors reviewed 1,357 complex with kindred organisations. National Electricity Market appliances for acceptance during 2003–04. • To contribute positively to the Victorian Management Company Tier Two Certification under the Australian Government’s review of the ‘Energy Safety NEMMCO is the market and system operator Gas Association certifications scheme, Statutory Regulators’. for the NEM. It provides information to assist was provided to 174 commercial gas-fired • Continued maintenance and enhancement the market to identify opportunities for appliances. Eighty-four mobile pre-1997 of Victoria's successful co-regulatory Safety investment. LPG installations, (fruit dehydrators) were registered for acceptance in the Mildura Case regime, ensuring the OGS and the gas Riverina area. industries preparedness to successfully Office of Gas Safety deliver Emergency Management • Two thousand three hundred and thirty- OGS is a statutory authority, established responsibilities via testing and system three sites with pre-existing LPG-fuelled under the Gas Safety Act 1997, to monitor enhancements. complex industrial appliances were assessed and promote gas safety in Victoria. for gas safety. Many minor and a significant • Administration of a rebate scheme to assist OGS objectives are achieved by setting and number of more serious faults were identified pensioners and Health Card holders to enforcing gas safety measures and standards and rectified. remove aged and dangerous appliances to ensure the safety of gas supply, transmission, from their homes, particularly • A total of 61 investigations into serious distribution, installations and to enhance instantaneous water heaters. gas-related incidents were conducted public and industry awareness of gas safety during the year, a further 78 incidents of • The introduction of online hand-held field requirements. less serious nature were also investigated. data-collection devices for inspectors. • Successfully carried out 13 prosecutions • Enhancement and increased efficiency of Key achievements in 2003–04 resulting from breaches of the Gas Safety the current enforcement process by • Commissioned a review of OGS Act 1997. An additional nine cases are introducing on-the-spot fines in addition to performance in administering the awaiting the start of proceedings. court prosecutions. Victorian gas safety regime. The findings • Conducted a winter and summer public • To develop a 10-year strategic plan for a rated the OGS performance very highly education campaign. These utilised gas appliance and equipment energy in all areas investigated. television commercials highlighting the efficiency program in partnership with • Conducted 42 Safety Case audits to address importance of maintenance of barbecues industry, the Australian Greenhouse Office risks relevant at the time to each sector of and not leaving cooking unattended. The and the SEAV. the gas industry and implemented the campaigns were conducted in partnership commencement of a five-year Systems with the Melbourne Fire Brigade and Audit Plan. Country Fire Authority. Support activities • Thirty-six educational presentations were included community displays, lectures and conducted covering topics such as gas CALD-focused brochures. installations and responsibilities, changes Statutory Authorities DOI Annual Report 2003–04 171

Office of the Chief Electrical Inspector preparation for bushfire mitigation. The Key achievements in 2003–04 aim is to ensure improved risk management The OCEI operates under the Electricity Safety • Established an office in the town of Hastings for future summer bushfire seasons. Act 1998. It is a technical electrical regulator to increase interaction between POHC and responsible for ensuring the safe supply and • Electric Line Clearance Regulations stakeholders. use of electricity in Victoria. It also encourages and associated Codes of Practice are • Provided input to workshops and formal efficient use of the electricity in Victoria and being reviewed for implementation in meetings, informing people about general through the energy labelling of certain December 2004. and strategic port matters relevant to the electrical appliances. Port of Hastings and other Victorian ports. Priorities for 2004–05 • Satisfied environmental obligations under Key achievements in 2003–04 • Further work is to be undertaken to increase the Port Management Agreement. • One accidental electrical fatality recorded the uptake of safety switches in residential • Complied with all relevant government in the past three years. households. policies. • Lowest electrical fatality rate of all • A voluntary home safety inspection program • Exceeded annual revenue targets due Australian States, Territories and New will be further developed, simplified and to greater port activity. Zealand. implemented. Recommendations from the post implementation review of the • Extensive research indicates that 90 per cent certificate of electrical safety system will be Priorities for 2004–05 of all electricity-related deaths and serious progressively implemented to focus audit accidents in domestic premises could have • Work with the Government to achieve its work on the worker and then the work. been prevented if safety switches were stated aims and objectives for port reform. installed. Fifty-six per cent of Victorian • Further enhancements to the No Go Zone • Revise or replace the Corporate Plan to give premises now have safety switches installed. will be considered in conjunction with effect to new legislative structure. WorkCover Victoria. • The certificate of electrical safety • Develop a strategic land-use plan to inform system provides for a constant review • The public awareness program of OCEI government and local organisations of the of workmanship and worker competency. will be reviewed and redesigned. future expansion of the Port of Hastings. 6 per cent increase in the use of certificates • Contribute to the review of energy safety • Develop a community relations strategy, of electrical safety, resulting from increased regulators. which will ensure the involvement of local acceptance by electrical workers and the government and community groups. community. Port of Hastings Corporation • Trained safety observers (known as Port of Melbourne Corporation ‘spotters’) who watch for potential hazards The POHC was formed in January 2004. when working near overhead powerlines The newly established entity has a similar The Port of Melbourne is Australia’s largest are integral to the success of the ‘No Go charter to that of the new POMC, ensuring and busiest container port, handling 37 per Zone’. Some 300 people were trained as that any growth in port operations can be cent of the nation’s container trade. It is also ‘spotters’ and a further four companies managed more effectively in the future. one of Australia’s largest general cargo ports. This may include expansion into container were trained and authorised to provide Forty-two container shipping lines, as well trades when growth in the Port of Melbourne such training on the OCEI's behalf. This as a number of other general cargo carriers, becomes limited. scheme has now been extended into other make approximately 3,200 ship calls a year industries in conjunction with WorkCover. POHC continues to manage property connected to Melbourne. with the Port of Hastings, and is responsible • A Lineworker Registration system has been The port is situated at the north of Port Phillip for developing the area into an economically, developed and implemented by the OCEI Bay. It is serviced by more than 100 nautical socially and environmentally sustainable facility. with the full support of the industry and miles of shipping channels and fairways POHC seeks to facilitate relationships with the associated trade unions. This is the first of between the Port Phillip Heads and berths port operator and the wider community and its kind in Australia and will result in further located on the Yarra River and at Williamstown. improvements in electrical safety involving to add value where possible. overhead powerlines. If directed by Order of the Governor-in-Council, • Regulations pertaining to bushfire mitigation POHC is able to act as port operator or channel were developed, prescribing the methods operator for any period during which there may and standards electricity distribution trans- not be an agreement in force for operation of mission businesses must adhere to in the the port or channels. 172 DOI Annual Report 2003–04

Key achievements in 2003–04 Public Transport Ticketing Body Priorities for 2004–05 • Effective transition and integration (Transport Ticketing Authority) • Promptly and efficiently progress the new of the land and maritime functions In June 2003, the Governor-in-Council ticketing solution. of the predecessor organisations. established the Public Transport Ticketing Body • Tender evaluation. • Preparation for the channel deepening to manage all aspects of the State’s interests • Contract negotiation and award. in Port Phillip Bay and the Yarra River in the existing public transport ticketing was advanced. system, and to determine and deliver the • Contractor mobilisation. future system. • Enhanced market intelligence to meet competitive pressures while optimising Trading as TTA, the organisation plays Southern and Eastern Integrated market share. an important role in helping to deliver Transport Authority the Victorian Government’s Linking Victoria SEITA's role is to contribute to the public • Comprehensive review of the pricing strategy. TTA has been instrumental in the amenity, environmental sustainability and framework undertaken, including design and procurement of a public transport economic development of Melbourne's eastern innovative pricing structures in the context ticketing solution that will allow for a more and south-eastern region through the timely of a 10-year plan of capital investment. effective and integrated ticketing service delivery of the Mitcham Frankston integrated • Improved customer relationships with throughout the State. transport project in accordance with the stevedores, shipping lines and other port Government's objectives. users and work with port businesses to Key achievements in 2003–04 facilitate port capacity growth opportunities • Rapid mobilisation of the newly-created and effective integration of near-port Key achievements 2003–04 TTA and recruitment of an experienced freight facilities. A significant amount has been achieved in the and talented team from Victoria, interstate 2003–04 year with the formation of SEITA, the • Development of a long-term integrated and overseas. planning framework for port-related logistics development of the bidding process for the • Procurement strategies were developed infrastructure, optimal use for port land interested parties from the private sector, and and approved by government, contract and targeted capital investment including the development of legislative and commercial and tender requirements documented and off-port intermodal facilities, transport frameworks. Concurrent with development of tender administration preparations made corridors and integrated business systems. the bid evaluation plan in the formative phase, for the beginning of the tender process was the development of the negotiation in July 2004. strategy. The processes associated with acquiring Priorities for 2004–05 • Developed relationships and processes land necessary for the project and securing the • Advance the Channel Deepening project, to ensure the constructive management necessary planning approvals were progressed. together with necessary berth modifications of the existing ticketing system contract Also developed were the necessary systems, to accommodate larger ships. with OneLink Transit Systems Pty Ltd policies, procedures and the recruitment of resources to support the subsequent bid • Finalise port development plan to provide through its agent, Metlink. assessment phase including the preparation confidence for port users, certainty and • Wide-ranging and in-depth consultations and provision of the legislative environment. sustainability of the port and to encourage with representative passengers, public complementary private investment. transport operators, government, and With the formation of SEITA, the necessary systems, policies, procedures and processes • Finalise commercial strategy, including the market of potential ticketing system required to support the operations of the pricing policy aimed at generating the suppliers. organisation needed to be identified and financial capacity to meet operational • Development of the structure, design developed. Those essential elements were overheads and investment in port and functionality requirements of the new required to provide seamless support to the infrastructure, facilities and systems, ticketing solution, subsequently approved project's operations. together with appropriate return to by government. the shareholder. A range of systems and processes associated • Developed a model for the interoperability with human resources (training and • Retain and increase trade through the port. of Smartcard-based ticketing equipment development), contract management, • Comply with security requirements of and systems using innovative ‘open document handling, tender negotiation, the International Maritime Organisation/ architecture’. financial management, budget management, DoTARS, and Environment and Safety • Corporate resources established with and communication, including cross-discipline Management requirements of the Port management policies, protocols and communication were developed and Services Act, including a focus on maritime procedures to ensure ongoing and sound implemented. aspects and navigational safety as well governance and management. as matters relating to land and property. Statutory Authorities DOI Annual Report 2003–04 173

Having assessed human resources Goals and objectives Spencer Street Station Authority requirements, a comprehensive recruitment The Business Plan for the 2004–05 year The Spencer Street Station Authority (the program was implemented to secure the covers sections of the Bid Assessment Phase Authority) began operations on 1 July 2000 appropriate level of expertise and experience. and Delivery Phase of the project. The Bid under the Rail Corporations and Transport Acts Financial policies, procedures and processes Assessment Phase started in March 2004 with (Amendment) Act 1999. were also developed in order that funds the submission of bids, and will be completed associated with key functions, could be during the second half of 2004, with the Specific objectives for the monitored and satisfactorily managed. SEITA successful proponent selected and contract Authority include: achieved a modest budget surplus despite signed. The Delivery Phase begins in early facilitating an expanded workload and the 2005 and will continue through 2008 to • to manage the precinct and the develop- incorporation of a number of functions project completion. During the delivery phase, ment, or redevelopment, of the precinct for previously outsourced. SEITA's role will change to one of active transport and related purposes, including commercial obligations Also developed was a Communication management of the Concession and providing Strategy that identified major stakeholders and the necessary support to the Concessionaire in • to monitor the requirements and likely future developed a plan for engaging stakeholders in order to facilitate delivery during 2008. requirements for transport facilities at the a positive way and communicating, on a broad precinct level, the project's major initiatives and Priorities for 2004–05 • any other functions conferred on the achievement of milestones. • Adherence to the project timetable to achieve Authority by the Rail Corporations and There are many risks in a project of this size award of a Concession in a timely manner. Transport Acts (Amendment) Act 1999 and any other Act. and they need to be scoped and managed • Maintenance of a competitive bidding in a systematic way to ensure SEITA achieves process. Consequently the Authority's two primary its business objectives. A thorough analysis areas of responsibility are to: was undertaken of risks and a Risk Register • Development of draft legislation and the • assume the role of client in delivering developed. Any new or changed risks, as Contract the station redevelopment project well as risks of high and very high priority, • Maintaining the integrity of the Concession are discussed at management meetings and documentation. • manage the facilities and operations of reported on a monthly basis to the Board. Spencer Street Station during demolition • Ensuring land is available and delivered and redevelopment, and maintain an In order to be prepared for the next phase to the Concessionaire in a timely manner. acceptable standard of amenity, service of the project, the necessary legal and • Maintaining a high level of probity to ensure and accessibility to the travelling public commercial frameworks were established, that confidence is maintained in the bidding including further development of legislation, process and to ensure there is the optimum and the RFP document. Key achievements in 2003–04 outcome for the Government. The Authority assumed responsibility for Other key achievements included: • Ensuring extra resources are in place during management of the redevelopment project surge times. by integrating the seconded DOI Project • development of a Probity Program • Providing an environment conducive to Director and project management team. • development of a Bid Evaluation Strategy consultation and ensuring stakeholders are This responsibility is additional to the • governance processes in place including engaged in a positive way. Authority's existing role as station manager. formation of a Finance and Audit Committee • Monitoring and reporting on consultant • High quality customer services continued and appointment of Internal Auditors. expenditure and contracts. to be delivered by the expanded customer service team. • Ongoing identification of emerging risks and monitoring of current risks. • The station's buggy fleet was expanded to seven to assist mobility-impaired customers. • Retention of corporate knowledge. • The old station building was closed to the • Appointment of Independent Reviewer. public and demolition began. • Development of an effective working • Temporary station facilities for regional relationship with the Concessionaire and and interstate rail passengers were opened. active management of the Concession. • The Collins Street concourse base structure • The establishment of SEITA's offices close was completed. to the project area. 174 DOI Annual Report 2003–04

• Construction of new wave roof began. – undertook work on 56 high-incidence • The first stage of a freeway performance locations to improve road safety for monitoring system was developed to enable • The first site tour for Victorian media was motorcyclists. VicRoads to improve management of hosted by the Minister for Transport. freeways through more strategic targeting • Work on the Craigieburn Bypass progressed • A free coffee morning was held for daily of investment to reduce congestion and to schedule, with approximately half the commuters as a thank you for their improve travel times. project complete by the end of the ongoing support. 2003–04 financial year. • Approximately $3 million of works were completed to assist road users with a • The Hallam Bypass was completed in Priorities for 2004–05 disability, including upgraded bus stops, July 2003, $10 million under budget wheel-chair detection loops and traffic • Substantial progress on the redevelopment and 17 months early. project in line with the project's program. lights fitted with audio-tactile facilities. • The upgrade of the Calder Highway con- • Commission new passenger areas at station. tinued, with duplication work underway Priorities for 2004–05 • Further strengthening of key stakeholder at Kyneton North and commencing at relationships. Ravenswood. • Increase the efficiency and reliability of the movement of road freight by improving • Further development of customer services. • Processes to address the EES were com- access to, and connectivity between, the pleted for the Pakenham Bypass and the • Continued planning for handover to Civic Port of Melbourne, rail freight terminals project entered the pre-construction phase. Nexus. and industrial precincts. • A landmark agreement was signed with the • Improve the reliability and efficiency of trams Yorta Yorta Nation Aboriginal Corporation VicRoads through actions such as improved signal to formalise an ongoing partnership with priority, allocation of road space, linking VicRoads role is to serve the community and VicRoads in relation to road system traffic and tram control centres and contribute to the social, economic and environ- development in north central Victoria. reviewing practices and road rules relating mental development of Victoria and Australia by The agreement is the first of its kind to to tram priority. managing Victoria’s road system and its use as be developed by a government agency an integral part of the overall transport network. in Victoria. • Improve the reliability and efficiency of buses through addressing delays at red • The first major section of the Mitcham spots on the network, including the Key achievements in 2003–04 Frankston Project, between Springvale Road Warrigal Road SmartBus route, as well • Rate of fatalities and injuries on Victorian and Park Road, was completed on budget as more than 20 other sites across roads continued to fall, with 330 fatalities and on time, for transfer to SEITA which metropolitan Melbourne. from road accidents in 2003 – the lowest will deliver the total project. • Reduce the number of deaths and serious level since 1951 when records began, and • The Road Management Act 2004 came injuries caused by crashes on Victorian roads 67 fewer than for the previous year. into operation on 1 July 2004. The Act with a particular focus on improving the • At the end of 2003, country Victoria had a represents the most significant policy safety of road infrastructure and road users. 10 per cent reduction in fatalities, reversing and legislative reform to Victorian the previous upward trend. road management in the past 50 years, • Complete the Craigieburn Bypass by providing for a more efficient and safer mid-2005. • A number of road safety initiatives were Victorian road network. implemented as listed below: • Continue work on the Albury-Wodonga • A further 14 bridges were upgraded under Bypass, Geelong Bypass, Craigieburn – reduced speed zones near all Victorian the Mass Limit Bridge Strengthening Bypass, Pakenham Bypass, Deer Park primary and secondary schools Program marking the culmination of Bypass, duplication of the Calder Highway, – reduced speed limits (50 km/h) in a four years’ work that has enabled freight duplication of the Arcadia section of the further 22 rural townships and outer vehicles to access 99 per cent of the Goulburn Valley Highway, the program metropolitan areas Victorian arterial road network. of outer metropolitan road improvements and five new rural road projects. – under the Accident Blackspot Program, • Forty km of new bicycle lanes the number of road treatments were and paths were added to Melbourne’s • Finalise the planning and development fully allocated. More than 1,100 2,400 km Principal Bicycle Network and of the Middleborough Road rail grade accident blackspots have been treated 60 km were added to the 635 km network separation project. since the program began in 2000. of Priority Bicycle Routes in cities and towns • Implement the Road Management Act. – became the first State in Australia to in regional Victoria. • Finalise the VicRoads Environment Strategy. introduce legislation to allow random roadside drug testing for drivers Statutory Authorities DOI Annual Report 2003–04 175

Victorian Energy Networks • Undertook extensive work ahead of the Victorian Rail Track (VicTrack) requirement to raise and pass through Corporation (VENCorp) VicTrack owns the majority of Victoria’s new Transmission Use of System (TUOS) VENCorp’s roles are: rail infrastructure and land on behalf of the payments in line with the implementation State. VicTrack also owns a significant portion • independent system operator for the of a new transmission easment land tax, of the State’s passenger rolling stock (trains Victorian principal gas transmission network effective 1 July 2004. and trams). • manager and developer of the Victorian • Administered the NTR on behalf of the Most of VicTrack’s assets are leased to the wholesale gas market Victorian Government. Director of Public Transport for the public • facilitating gas Full Retail Contestability (FRC) • Completed VENCorp's second Stakeholder transport franchise contracts with the private • planning and directing the augmentation of Value Survey to assist in the ongoing train and tram operators. As a result, VicTrack the Victorian electricity transmission system delivery of high levels of stakeholder service. is not directly involved in the provision of passenger or freight transport services. • providing information and other services • Progressed an upgrade of the System to facilitate decisions for investment and the Control and Data Acquisition (SCADA) VicTrack has two broad categories of activities: use of resources in the gas and electricity system to monitor and operate Victoria's custodial (fulfilling the organisation’s obligations industries gas transmission system. as owners of infrastructure and rolling stock) and business (seeking to add value to assets • administrator of the NTR Scheme which • Assisted in the transition of the FRC hub and generate returns to enable greater invest- ensures consistency between the electricity to NEMMCO, to enable these services to ment in and improvements to public transport). bills of consumers in outer suburban, be provided to markets in South Australia regional and rural areas and those of and Western Australia. consumers in the metropolitan area Key achievements in 2003–04 Priorities for 2004–05 • provide operational and communications • Made considerable progress on the project services during gas and electricity • Continuing to meet all VENCorp’s to install a fibre-optic backbone to the emergencies. responsibilities as the system operator regional centres of Ballarat, Bendigo, for the Victorian gas transmission network; Geelong and Traralgon. as the manager and developer of the Key achievements in 2003–04 • Continued to pursue and develop a number Victorian wholesale gas market; as the system of value-adding initiatives, including new • Assisted the Victorian Government Task planner providing planning services for the commercial leases, air-space developments Force established following the Moomba gas and electricity industries; as the provider and outdoor advertising revenue gas plant shutdown on 1 January 2004. of gas full retail contestability functions; maximisation. • Continuously monitored the extended and being prepared to meet all operational • Facilitated a number of major transport shutdown of the Longford gas plant on and communications responsibilities during projects and initiatives by providing the 5 April 2004, following an electrical fire. gas and electricity emergencies. expert knowledge of VicTrack staff to assist • Involved in a major project to upgrade • Progressing outcomes from the gas with land acquisitions, planning and project south-east Melbourne's electricity supply market Pricing and Balancing Review. The management to meet growing demand – including recommendations of the review are under • Continued to project manage the improve calling tenders and monitoring the consideration by the Minister for Energy safety at road–rail and pedestrian crossings construction of a 1000 MVA 500/220 kV Industries and Resources. program. transformer at Cranbourne. • Finalising VENCorp’s ‘fourth line’ project • Managed VicTrack’s environmental • Provided the gas and electricity Annual to increase the capacity of the electricity responsibilities by undertaking assessments Planning Reports to stakeholders transmission link between the Latrobe Valley and Melbourne for completion and action where required. • Completed a review of the Victorian by December 2004. wholesale gas spot market (the gas Priorities for 2004–05 market Pricing and Balancing Review), • Assisting the State Government to address and presented recommendations to the issues in relation to the national energy • Manage the project to upgrade railway Minister for Energy Industries and Resources. market reform process. infrastructure and passenger facilities • Administering the NTR Scheme. at a number of locations, including the construction of a new station at Grovedale • Finalising an upgrade program on VENCorp’s and works at Flinders Street Station. SCADA host systems to ensure the reliability of the SCADA system to safely operate • Negotiate service level agreements for the Victoria’s principal gas transmission system use of the regional fibre-optic system and and collect metering data until at least 2007. pursue other opportunities to develop 176 DOI Annual Report 2003–04

and commercialise spare capacity within • Tender for the upgrade of navigation aids • to undertake and manage declared projects the communications network. in the Port of Geelong. on behalf of the Crown • Continue the program to restore heritage • Investigate the implementation of a dynamic • any other functions conferred on the stations and rail facilities, with work under-keel clearance system. Authority by this Act scheduled for Kyneton, Maryborough, • Manage channel operating agreements for • the functions conferred on the Authority St Arnaud and Werribee. the Ports of Hastings and Portland for which by the Docklands Act 1991 • Further develop and enhance VicTrack’s the VRCA is responsible. • any functions conferred on the Authority outdoor advertising portfolio, which • Investigate opportunities for improving by any other Act. involves constructing super-sites at various Geelong channels. locations and decommissioning a number The functions of the Authority under this of smaller panels. Act are to be carried out on a commercial Victorian Urban Development basis. Section 10 of the Act provides that the • Implement a new system for the Authority (VicUrban) Treasurer may direct VicUrban to undertake management of technical infrastructure non-commercial activity with compensation drawings and commence a program VicUrban is the Victorian Government's for any financial detriment. to progressively update the drawings. sustainable urban development agency. The organisation operates throughout Victoria Key achievements in 2003–04 Victorian Regional under its own Act of Parliament, the Victorian Channels Authority Urban Development Authority Act 2003, which Environment and design charges it with the role of contributing to The VRCA came into operation on 1 April • Melbourne Docklands’ ESD Guide wins sustainable urban growth throughout Victoria. 2004, replacing the old VCA It is responsible the Planning Institute of Australia's for the commercial shipping channels and The agency was formed from a merger of (Victoria Division) Ecological Sustainable navigation aids in Victorian port waters the Docklands Authority and the Urban and Development (ESD) Award in its 2003 (outside the port waters specific to the Regional Land Corporation and opened for Awards for Planning Excellence. Port of Melbourne) on behalf of the State business on 1 August 2003. • The Sustainability Charter is completed. Government of Victoria. The functions of VicUrban as set out in the • The Ecohome, demonstrating a sustainable The VRCA will continue to be responsible for Victorian Urban Development Authority Act home for the mainstream housing market, all services the old VCA provided in respect of 2003 are: is launched at Cairnlea. port waters outside the Port of Melbourne. • to purchase, consolidate, take on, transfer Community and affordability This includes providing channel management or otherwise acquire land in metropolitan services to the Port of Geelong and continuing and regional areas for development for • Record $796,500 VicUrban/Henley Royal to manage existing agreements with the urban purposes Children’s Hospital Good Friday Appeal operators of the channels in the Port of is raised. • to carry out development of land alone or Hastings and the Port of Portland. in partnership or to enter into arrangements • Second annual Dockfest celebrating the or agreements for the development of land Docklands community is held. Key achievements in 2003–04 • to develop land in Victoria for residential • Government announces municipal • The appointment of a new VRCA board and other urban purposes to create a responsibility of Docklands will return and CEO. competitive market for land in Victoria to City of Melbourne during 2008. • The appointment of a dedicated harbour • to promote best practice in urban and Urban communities master for the Port of Geelong. community design and development, taking • Construction is started on the benchmark into account links to transport services and sustainable urban development project, Priorities for 2004–05 innovations in sustainable development Aurora, in Epping North. • Negotiate improved contract arrangements • to assist in the implementation of • Last residential lots at Roxburgh Park are sold. with POMC for the delivery of channel government urban development policies • Lynbrook celebrates its tenth year and management. and strategies final stages. • Monitor and maintain tight control over • to contribute to improvements in housing • Tower Hill in Swan Hill is launched to charges levied by POMC for using the affordability in Victoria the market. shared channels at Port Philip Heads. • to provide consultancy services in relation • Parkside Estate and Parkside Gardens • Develop stakeholder management strategy. to the development of land not just in Shepparton are approved. confined to Victoria, but to the rest of Australia and beyond Melbourne Docklands Statutory Authorities DOI Annual Report 2003–04 177

• 3,500 people move into the National V/Line Passenger Corporation Priorities for 2004–05 Australia Bank headquarters at Lend Lease’s V/Line Passenger Corporation was established • Will assume responsibility for the provision Victoria Harbour . in 2003 under the Rail Corporations Act 1996 of passenger rail services to Shepparton and • Start of construction on Kuok’s Village to buy the shares in the country passenger coach services to Cobram from 1 July 2004, docklands. rail business, which was owned by NX. This and will assume responsibility for the • New public artworks at Docklands Reed followed the withdrawal of the NEGA from provision of the Warrnambool passenger Vessel and Shoal are completed. its three Victorian rail franchise businesses rail service from 1 September 2004. V/Line on 22 December 2002 and the appointment will also take over the lease of the Ballarat • Spectacular art cycling and pedestrian of KPMG as receivers and managers. East workshop to be used as a maintenance bridge, Webb Bridge, is opened. and stabling facility. V/Line Passenger Corporation’s sole function • Rugby World Cup is held at Telstra Dome. is to act as a holding company for V/Line • Start two return passenger rail services • Construction commences at Victoria Point, Passenger Pty Ltd (V/Line). V/Line has a per day to Ararat. franchise agreement with the Director of Docklands. • Manage the Bombardier contract for the Public Transport for the provision of passenger • NewQuay celebrates its first birthday. supply of 38 new two-car VLocity trains rail and coach services to regional Victoria. for delivery in 2004–05. These trains will • Waterfront City releases its first residential V/Line’s franchise agreement sets out minimum operate Regional Fast Rail services to offerings to the market and opens service standards and has an OPR which Ballarat, Bendigo, Geelong and Traralgon. Expressions of Interest for the long-term measures the reliability and punctuality of each naming rights of its giant observation wheel. • Develop the new Regional Fast Rail Service rail service. Performance results are published Plan (train timetable), using information • Construction of Lend Lease’s first residential regularly by DOI in Track Record. gained from market research and offering, Dock 5, begins. community consultation to ensure the New business Key achievements in 2003–04 Service Plan best meets community needs. • Began negotiaions with the Commonwealth • Came out of receivership and administration • Work with the Spencer Street Station Department of Defence for a 127 hectare site and entered into a Deed of Company Authority to facilitate delivery of the in Maribyrnong. Arrangement on 1 October 2003. Spencer Street Station Redevelopment • Began negotiations for a priority sale from • Entered into a new franchise agreement project, and with DOI to facilitate delivery the Commonwealth for a 132 hectare site with application from 1 October 2003. of a new station at Grovedale. in Wodonga. • Introduced additional services to Eaglehawk. • Started a partnership with Melbourne Water • Began two return passenger rail services for a showcase project in sustainable water per day to Bairnsdale. use at Werribee . • Managed replacement services during shutdowns on the Ballarat, Geelong and Priorities for 2004–05 Traralgon lines for infrastructure upgrades • Start of Melbourne Water partnership under the Regional Fast Rail project. project, Werribee Field. • First lots on the market at benchmark sustainable urban development, Aurora Estate, Epping North. • Start of construction of urban development, Metro 3175, as part of the Dandenong Transit City project. • Start of construction of retail/entertainment precinct, Waterfront City, at Docklands. • Completion of the three-hectare Docklands park. • Development of models to achieve affordable housing outcomes in new developments. 178 DOI Annual Report 2003–04

DOI Whistleblowers Protection Policy

Whistleblowers Protection Act 2001 – Procedures January 2002 Contents

1. DOI philosophy 180

2. Purpose of these procedures 180

3. Objects of the Act 180

4. Definitions of key terms 180 4.1 Improper conduct 180 4.2 Corrupt conduct 180 4.3 Detrimental action 180

5. The reporting system 181 5.1 Contact persons within DOI 181 5.2 Alternative contact persons 181 5.3 Making disclosures about persons other than DOI employees 181

6. Roles and responsibilities 181 6.1 All DOI employees and officers 181 6.2 Protected disclosure coordinator 181 6.3 Investigator 182 6.5 Welfare manager 182

7. Confidentiality 182

8. Collating and publishing statistics 182

9. Receiving and assessing disclosures 183 9.1 Has the disclosure been made in accordance with Part 2 of the Act? 183 9.2 Has the disclosure been made to the appropriate person? 183 9.3 Does the disclosure contain the essential elements of a protected disclosure? 183 9.4 Is the disclosure a public interest disclosure? 183

10. Investigations 183 10.1 Introduction 183 10.2 Terms of reference 183 10.3 Investigation plan 184 10.4 Natural justice 184 10.5 Conduct of the investigation 184 10.6 Referral of an investigation to the Ombudsman 184 10.7 Reporting requirements 184 Statutory Authorities DOI Annual Report 2003–04 179

11. Action taken after an investigation 184 11.1 Investigator’s final report 184 11.2 Action to be taken 185

12. Managing the welfare of the whistleblower 185 12.1 Commitment to protecting whistleblowers 185 12.2 Keeping the whistleblower informed 185 12.3 Occurrence of detrimental action 185 12.4 Whistleblowers implicated in improper conduct 186

13. Management of the person against whom a disclosure has been made 186

14. Criminal offences 186

15. Review 186 180 DOI Whistleblowers Protection Policy

1. DOI philosophy 4. Definitions of key terms Examples of corrupt conduct The Department of Infrastructure (DOI) is There are three key concepts in the reporting • A public officer takes a bribe or receives committed to the aims and objectives of the system. These are; a payment other than his or her wages Whistleblowers Protection Act. It does not or salary in exchange for the discharge • improper conduct tolerate improper conduct by its staff, nor the of a public duty. • corrupt conduct taking of reprisals against those who come • A public officer favours unmeritorious forward to disclose such conduct. • detrimental action. applications for positions or permits by DOI recognises the value of transparency friends and relatives. 4.1 Improper conduct and accountability in its administrative and • A public officer sells confidential A disclosure may be made about improper management practices and supports the information. making of disclosures which reveal corrupt conduct by a public body or public official. conduct, conduct involving a substantial Improper conduct means conduct that is 4.3 Detrimental action mismanagement of public resources or corrupt, a substantial mismanagement of public The Act makes it an offence for a person to conduct involving a substantial risk to public resources, or conduct involving substantial risk take detrimental action against a person in health and safety or the environment. to public health or safety or to the environment. reprisal for a protected disclosure. Detrimental The conduct must be serious enough to DOI will take all reasonable steps to protect action includes: constitute, if proved, a criminal offence or people who make such disclosures from any reasonable grounds for dismissal. • action causing injury, loss or damage detrimental action in reprisal for the making of the disclosure. It will also afford natural Examples of improper conduct • intimidation or harassment justice to the person who is the subject of • To avoid closure of a town’s only industry, • discrimination, disadvantage or adverse the disclosure. an environmental health officer ignores treatment in relation to or conceals evidence of illegal dumping a person’s employment, career, profession, 2. Purpose of these procedures of waste. trade or business, including the taking of disciplinary action. These procedures establish a system for • An agricultural officer delays or declines reporting disclosures of improper conduct imposing quarantine to allow a financially Examples of detrimental action or detrimental action by DOI or its employees. distressed farmer to sell diseased stock. The system enables such disclosures to be • A public body refuses a deserved • A building inspector tolerates poor made to the Protected Disclosure Coordinator. promotion of a person who makes practices and structural defects in Disclosures may be made by any DOI staff a disclosure. the work of a leading local builder. member, contractor or by members of the • A public body demotes, transfers, isolates public. 4.2 Corrupt conduct in the workplace or changes the duties These procedures are designed to complement Corrupt conduct means: of a whistleblower due to the making normal communication channels between of a disclosure. • conduct of any person (whether or not managers and staff. Staff are encouraged to a public official) that adversely affects the • A person threatens, abuses or carries continue to raise appropriate matters at any honest performance of a public officer’s out other forms of harassment directly time with their manager. As an alternative, or public body’s functions or indirectly against the whistleblower, staff may make a disclosure of improper his or her family or friends. conduct or detrimental action, under the Act, • the performance of a public officer’s in accordance with these procedures. functions dishonestly or with inappropriate • A public body discriminates against the partiality whistleblower or his or her family and associates in subsequent applications 3. Objects of the act • conduct of a public officer, former public for jobs, permits or tenders. officer or a public body that amounts to The Whistleblowers Protection Act 2001 a breach of public trust facilitates and encourages the making of disclosures of improper conduct by public • conduct by a public officer, former public officers and public bodies. The Act provides officer or a public body that amounts protection to whistleblowers who make to the misuse of information or material disclosures in accordance with the Act, acquired in the course of the performance and establishes a system for the matters of their official functions, or disclosed to be investigated and rectifying • A conspiracy or attempt to engage in the action to be taken. above conduct. Statutory Authorities DOI Annual Report 2003–04 181

5. The reporting system Person who is the subject Person/body to whom 5.1 Contact person within DOI of the disclosure the disclosure must be made Disclosures of improper conduct or Employee of a public body other than DOI That public body or the Ombudsman detrimental action by DOI or its employees, may be made to the following: Member of Parliament Speaker of the Legislative Assembly (Legislative Assembly) Protected Disclosures Coordinator Department of Infrastructure Member of Parliament President of the Legislative Council Level 14, Nauru House (Legislative Council) 80 Collins St Councillor The Ombudsman Melbourne 3000 Chief Commissioner of Police The Ombudsman or Deputy Ombudsman Phone: (03) 9655 8776 Member of the police force The Ombudsman, Deputy Ombudsman All correspondence, phone calls and emails from or Chief Commissioner of Police internal or external whistleblowers must be referred to the Protected Disclosure Coordinator. Where a person is contemplating making a All employees of DOI have an important role • impartially assess each disclosure to disclosure and is concerned about approaching to play in supporting those who have made a determine whether it is a public interest the Protected Disclosure Coordinator he or she legitimate disclosure. They must refrain from disclosure can call the Protected Disclosure Coordinator any activity that is, or could be perceived to and request a meeting in a discreet location • take all necessary steps to ensure the be, victimisation or harassment of a person away from the workplace. identity of the whistleblower and the who makes a disclosure. Furthermore, they identity of the person who is the subject should protect and maintain the confidentiality 5.2 Alternative contact of the disclosure are kept confidential of a person they know or suspect to have made A disclosure about improper conduct or a disclosure. • refer all public interest disclosures to detrimental action by DOI or its employees, the Ombudsman may also be made directly to the Ombudsman: 6.2 Protected Disclosure Coordinator • be responsible for carrying out, or appointing The Ombudsman Victoria The Protected Disclosure Coordinator will: an investigator to carry out, an investigation Level 22, 459 Collins Street referred to the public body by the • be a contact point for general advice about Melbourne Victoria 3000 Ombudsman the operation of the Act for any person Internet: http://www.ombudsman.vic.gov.au wishing to make a disclosure about • be responsible for overseeing and Email: [email protected] improper conduct or detrimental action coordinating an investigation where an Telephone: (03) 9613 6222 investigator has been appointed Toll-free: 1800 806 314 • receive all phone calls, emails and letters from members of the public or employees • appoint a welfare manager to support the 5.3 Making a disclosure about seeking to make a disclosure whistleblower and to protect him or her from any reprisals persons other than DOI employees • make arrangements for a disclosure to be The table here sets out where a DOI employee made privately and discreetly and, if • advise the whistleblower of the progress of or other person, may make a disclosure about necessary, away from the workplace an investigation into the disclosed matter; persons other than employees of DOI. • receive any disclosure made orally or in • establish and manage a confidential filing writing (from internal and external system 6. Roles and responsibilities whistleblowers) • collate and publish statistics on disclosures 6.1 All DOI employees and officers • commit to writing any disclosure made made orally • liaise with the Secretary of DOI. All DOI employees and officers are encouraged • impartially assess the allegation and to report known or suspected incidences of determine whether it is a disclosure made improper conduct or detrimental action in in accordance with Part 2 of the Act (that accordance with these procedures. is, ‘a protected disclosure’) 182 DOI Whistleblowers Protection Policy

6.3 Investigator 7. Confidentiality Documents relevant to a whistleblower matter must not be emailed and all phone calls and The investigator will be responsible for DOI will take all reasonable steps to protect meetings must be conducted in private. carrying out an internal investigation into the identity of the whistleblower. Maintaining a disclosure that has been made or where confidentiality is crucial in ensuring reprisals the Ombudsman has referred a matter to the are not made against a whistleblower. 8. Collating and publishing statistics public body. An investigator may be a person The Act requires any person who receives The Protected Disclosure Coordinator will appointed from within DOI or a consultant information due to the handling or investigation establish a secure register to record the engaged by the Protected Disclosures of a protected disclosure, not to disclose information required to be published in the Coordinator for that purpose. that information except in certain limited annual report, and to generally keep account of the status of whistleblower disclosures. The 6.4 Welfare manager circumstances. Disclosure of information in breach of section 22 constitutes an offence register will be confidential and will not record The welfare manager is responsible for looking that is punishable by a maximum fine of any information that may identify the after the general welfare of the whistleblower. 60 penalty units ($6000) or six months whistleblower. The welfare manager will: imprisonment or both. The register will contain the following • examine the immediate welfare and The circumstances in which a person may information: protection needs of a whistleblower who disclose information obtained about a protected • the number and types of disclosures made has made a disclosure and seek to foster disclosure include: to public bodies during the year a supportive work environment • where exercising the functions of the public • the number of disclosures referred to the • advise the whistleblower of the legislative body under the Act Ombudsman for determination as to and administrative protections available • when making a report or recommendation whether they are public interest disclosures to him or her under the Act • the number and types of disclosed matters • listen and respond to any concerns of • when publishing statistics in the annual referred to the public body by the harassment, intimidation or victimisation report of a public body Ombudsman for investigation in reprisal for making disclosure • in criminal proceedings for certain offences • the number and types of disclosures • ensure the expectations of the whistleblower in the Act. referred by the public body to the are realistic. Ombudsman for investigation However, the Act prohibits the inclusion of The Welfare Manager will be appointed by the particulars in any report or recommendation • the number and types of investigations Protected Disclosure Coordinator on a case by that is likely to lead to the identification of taken over from the public body by the case basis. DOI’s Employee Assistance Program the whistleblower. The Act also prohibits the Ombudsman may also be utilised to appoint a suitably identification of the person who is the subject qualified Welfare Manager independent to DOI. • the number of requests made by a of the disclosure in any particulars included whistleblower to the Ombudsman to take in an annual report. over an investigation by the public body The Protected Disclosure Coordinator will ensure • the number and types of disclosed matters all files, whether paper or electronic, are kept that the public body has declined to in a secure room and can only be accessed as investigate necessary by the investigator or welfare manager (in relation to welfare matters). All printed • the number and types of disclosed matters material will be kept in files that are clearly that were substantiated upon investigation marked as a Whistleblower Protection Act matter, and the action taken on completion of the and warn of the criminal penalties that apply investigation to any unauthorised divulging information • any recommendations made by the concerning a protected disclosure. All electronic Ombudsman that relate to the public body. files will be produced and stored on a stand- alone computer and be given password protection. Backup files will be kept on floppy disc. All materials relevant to an investigation, such as tapes from interviews, will also be stored securely with the whistleblower files. Statutory Authorities DOI Annual Report 2003–04 183

9. Receiving and assessing Where a disclosure is assessed not to be a In either case, the protected disclosure disclosures protected disclosure, the matter does not need coordinator will make the notification and the to be dealt with under the Act. The Protected referral within 14 days of the conclusion being 9.1 Has the disclosure been made Disclosure Coordinator will decide how the reached by the public body. Notification to the in accordance with Part 2 of the Act? matter should be responded to. whistleblower is not necessary where the Where a disclosure has been received, the disclosure has been made anonymously. 9.4 Is the disclosure a public Protected Disclosure Coordinator will assess interest disclosure? whether the disclosure has been made in 10. Investigations accordance with Part 2 of the Act and is, Where a disclosure has been received and therefore, a protected disclosure. determined to be a protected disclosure, 10.1 Introduction the Protected Disclosure Coordinator will Where the Ombudsman refers a protected 9.2 Has the disclosure been made determine whether the disclosure amounts disclosure to DOI for investigation, the to the appropriate person? to a public interest disclosure. This assessment protected disclosure coordinator will appoint For the disclosure to be responded to by DOI, will be made within 45 days of the receipt an investigator to carry out the investigation. it must concern an employee or officer of DOI. of the disclosure. The objectives of an investigation will be to: If the disclosure concerns an employee, officer In reaching a conclusion as to whether or member of another public body, the person a protected disclosure is a public interest • collate information relating to the who has made the disclosure must be advised disclosure, the protected disclosure coordinator allegation as quickly as possible. This may of the correct person or body to whom the will consider whether the disclosure shows, or involve taking steps to protect or preserve disclosure should be directed. (See the table tends to show, that the public officer to whom documents, materials and equipment in 5.2). If the disclosure has been made the disclosure relates: • consider the information collected and to anonymously, it should be referred to the • has engaged, is engaging or proposes to draw conclusions objectively and impartially Ombudsman. engage in improper conduct in his or her • maintain procedural fairness in the treatment 9.3 Does the disclosure contain the capacity as a public officer, or of witnesses and the person who is the essential elements of a protected • has taken, is taking or proposes to take subject of the disclosure disclosure? detrimental action in reprisal for the • make recommendations arising from the To be a protected disclosure, a disclosure must making of the protected disclosure. conclusions drawn concerning remedial satisfy the following criteria. If the protected disclosure coordinator concludes or other appropriate action. that the disclosure amounts to a public interest • Did a natural person (that is, an individual 10.2 Terms of reference person rather than a corporation) make disclosure, he or she will: Before commencing an investigation, the the disclosure? 1. notify the person who made the disclosure protected disclosure coordinator will draw up of that conclusion • Does the disclosure relate to conduct of a terms of reference and obtain authorisation public body or public officer acting in their 2. refer the disclosure to the Ombudsman for for those terms by the chief executive officer. official capacity? formal determination as to whether it is The terms of reference will set a date by which • Is the alleged conduct either improper indeed a public interest disclosure. the investigation report is to be concluded, conduct or detrimental action taken against If the protected disclosure coordinator concludes and will describe the resources available to a person in reprisal for making a protected that the disclosure is not a public interest the investigator to complete the investigation disclosure? disclosure, he or she will: within the time set. The protected disclosure coordinator may approve, if reasonable, • Does the person making a disclosure have 1. notify the person who made the disclosure an extension of time requested by the reasonable grounds for believing the alleged of that conclusion investigator. The terms of reference will require conduct has occurred? 2. advise that person that he or she may request the investigator to make regular reports to the The Protected Disclosure Coordinator will the public body to refer the disclosure to the protected disclosure coordinator who, in turn, determine whether the disclosure is a protected Ombudsman for a formal determination as to is to keep the Ombudsman informed of disclosure and whether the disclosure is a public whether the disclosure is a public interest general progress. interest disclosure. disclosure, and that this request must be made within 28 days of the notification. 184 DOI Whistleblowers Protection Policy

10.3 Investigation plan • all relevant parties to a matter should 10.7 Reporting requirements be heard and all submissions should The investigator will prepare an investigation The protected disclosure coordinator will be considered plan for approval by the protected disclosure ensure the whistleblower is kept regularly coordinator. The plan will list the issues to be • a decision should not be made until all informed concerning the handling of a substantiated and describe the avenue of reasonable inquiries have been made; protected disclosure and an investigation. inquiry. It will address the following issues: • the investigator or any decision maker The protected disclosure coordinator will report • What is being alleged? should not have a personal or direct to the Ombudsman about the progress of an interest in the matter being investigated investigation. • What are the possible findings or offences? • all proceedings must be carried out fairly Where the Ombudsman or the whistleblower • What are the facts in issue? and without bias. Care should be taken to requests information about the progress of an • How is the inquiry to be conducted? exclude perceived bias from the process investigation, that information will be provided • What resources are required? • the investigator must be impartial in within 28 days of the date of the request. At the commencement of the investigation, assessing the credibility of the whistleblowers the whistleblower should be: and any witnesses. Where appropriate, 11. Action taken after conclusions as to credibility should be an investigation • notified by the investigator that he or she has included in the investigation report. been appointed to conduct the investigation 11.1 Investigator’s final report 10.5 Conduct of the investigation • asked to clarify any matters At the conclusion of the investigation, the • provide any additional material he or she The investigator will make contemporaneous investigator will submit a written report of might have. notes of all discussions and phone calls, and his or her findings to the protected disclosure all interviews with witnesses will be taped. All coordinator. The report will contain: The investigator will be sensitive to the information gathered in an investigation will whistleblower’s possible fear of reprisals • the allegation/s be stored securely. Interviews will be conducted and will be aware of the statutory protections in private and the investigator will take all • an account of all relevant information provided to the whistleblower. reasonable steps to protect the identity of the received and, if the investigator has rejected evidence as being unreliable, the reasons 10.4 Natural justice whistleblower. Where disclosure of the identity of the whistleblower cannot be avoided, due for this opinion being formed The principles of natural justice will be followed to the nature of the allegations, the investigator • the conclusions reached and the basis in any investigation of a public interest will warn the whistleblower and his or her for them disclosure. The principles of natural justice welfare manager of this probability. concern procedural fairness and ensure a fair • any recommendations arising from It is in the discretion of the investigator decision is reached by an objective decision the conclusions. to allow any witness to have legal or other maker. Maintaining procedural fairness protects If the investigator has found that the conduct representation or support during an interview. the rights of individuals and enhances public disclosed by the whistleblower has occurred, If a witness has a special need for legal confidence in the process. recommendations made by the investigator representation or support, permission should will include: DOI will have regard to the following issues in be granted. ensuring procedural fairness: • the steps that need to be taken by DOI to 10.6 Referral of an investigation • the person who is the subject of the prevent the conduct from continuing or to the Ombudsman disclosure is entitled to know the allegations occurring in the future made against him or her and must be given The protected disclosure coordinator will • any action that should be taken by DOI to the right to respond. (This does not mean make a decision regarding the referral of remedy any harm or loss arising from the the person must be advised of the allegation an investigation to the Ombudsman where, conduct. This action may include bringing as soon as the disclosure is received or the on the advice of the investigator: disciplinary proceedings against the person investigation has commenced) • the investigation is being obstructed by, responsible for the conduct, and referring • if the investigator is contemplating making for example, the non-cooperation of key the matter to an appropriate authority for a report adverse to the interests of any witnesses, or further consideration. person, that person should be given the • the investigation has revealed conduct that opportunity to put forward further material may constitute a criminal offence. that may influence the outcome of the report and that person’s defence should be fairly set out in the report Statutory Authorities DOI Annual Report 2003–04 185

The report will be accompanied by: 12. Managing the welfare of • discrimination, disadvantage or adverse treatment in relation to a person’s employ- • the transcript or other record of any oral the whistleblower ment, career, profession, trade or business evidence taken, including tape recordings 12.1 Commitment to protecting (including the taking of disciplinary action). • all documents, statements or other exhibits whistleblowers received by the officer and accepted as 12.2 Keeping the DOI is committed to the protection of genuine evidence during the course of the whistleblower informed whistleblowers against detrimental action investigation. taken in reprisal for the making of protected The protected disclosure coordinator will ensure Where the investigator’s report is to include disclosures. The protected disclosure coordinator the whistleblower is kept informed of action an adverse comment against any person, is responsible for ensuring whistleblowers are taken in relation to his or her disclosure, and that person will be given the opportunity protected from direct and indirect detrimental the time frames that apply. The whistleblower to respond and his or her defence will be fairly action, and that the culture of the workplace is will be informed of the objectives of an included in the report. supportive of protected disclosures being made. investigation, the findings of an investigation, and the steps taken by DOI to address any The report will not disclose particulars likely to The protected disclosure coordinator will improper conduct that has been found to lead to the identification of the whistleblower. appoint a welfare manager to all whistleblowers have occurred. The whistleblower will be given who have made a protected disclosure. The reasons for decisions made by DOI in relation 11.2 Action to be taken welfare manager will: to a protected disclosure. All communication If the Protected Disclosure Coordinator is • examine the immediate welfare and with the whistleblower will be in plain English. satisfied that the investigation has found that protection needs of a whistleblower who the disclosed conduct has occurred, he or she has made a disclosure and, where the 12.3 Occurrence of detrimental action will recommend to the Secretary to DOI the whistleblower is an employee, seek to If a whistleblower reports an incident of action that must be taken to prevent the foster a supportive work environment harassment, discrimination or adverse treatment conduct from continuing or occurring in the that would amount to detrimental action taken future. The protected disclosure coordinator • advise the whistleblower of the legislative in reprisal for the making of the disclosure, the may also recommend that action be taken and administrative protections available to welfare manager will: to remedy any harm or loss arising from him or her the conduct. • listen and respond to any concerns of • record details of the incident The protected disclosure coordinator will harassment, intimidation or victimisation • advise the whistleblower of his or her rights provide a written report to the DOI Ministers, in reprisal for making disclosure under the Act the Ombudsman and the whistleblower setting • keep a contemporaneous record of all • advise the Protected Disclosure Coordinator out the findings of the investigation and any aspects of the case management of the or the Secretary to the DOI of the remedial steps taken. whistleblower including all contact and detrimental action. Where the investigation concludes that the follow-up action The taking of detrimental action in reprisal for disclosed conduct did not occur, the protected • ensure the expectations of the whistleblower the making of a disclosure can be an offence disclosure coordinator will report these findings are realistic. against the Act as well as grounds for making to the Ombudsman and to the whistleblower. All employees will be advised that it is an a further disclosure. Where such detrimental offence for a person to take detrimental action action is reported, the protected disclosure in reprisal for a protected disclosure. The coordinator will assess the report as a new maximum penalty is a fine of 240 penalty units disclosure under the Act. Where the protected ($24,000) or two years imprisonment or both. disclosure coordinator is satisfied that the The taking of detrimental action in breach of disclosure is a public interest disclosure, he this provision can also be grounds for making or she will refer it to the Ombudsman. If the a disclosure under the Act and can result in Ombudsman subsequently determines the an investigation. matter to be a public interest disclosure, the Ombudsman may investigate the matter or Detrimental action includes: refer it to another body for investigation • causing injury, loss or damage as outlined in the Act. • intimidation or harassment 186 DOI Whistleblowers Protection Policy

12.4 Whistleblowers implicated 13. Management of the person 14. Criminal offences in improper conduct against whom a disclosure has DOI will ensure staff appointed to handle If a person who makes a disclosure is implicated been made protected disclosures and all other employees in misconduct, DOI will handle the disclosure DOI recognises that employees against whom are aware of the following offences created and protect the whistleblower from reprisals disclosures are made must also be supported by the Act: in accordance with the Act, the Ombudsman’s during the handling and investigation of 1. It is an offence for a person to take guidelines and these procedures. DOI acknow- disclosures. DOI will take all reasonable steps detrimental action against a person in ledges that the act of whistle blowing should to ensure the confidentiality of the person reprisal for a protected disclosure being not shield whistleblowers from the reasonable who is the subject of the disclosure during the made. The Act provides a maximum penalty consequences flowing from any involvement assessment and investigation process. Where of a fine of 240 penalty units ($24,000) in improper conduct. Section 17 of the Act investigations do not substantiate disclosures, or two years imprisonment or both. specifically provides that a person’s liability for the fact that the investigation has been carried his or her own conduct is not affected by the out, the results of the investigation, and the 2. It is an offence for a person to divulge person’s disclosure of that conduct under the identity of the person who is the subject of the information obtained as a result of the Act. However, in some circumstances, an disclosure will remain confidential. handling or investigation of a protected admission may be a mitigating factor when disclosure without legislative authority. The protected disclosure coordinator will considering disciplinary or other action. The Act provides a maximum penalty of ensure the person who is the subject of any 60 penalty units ($6,000) or six months The Secretary will make the final decision disclosure investigated by or on behalf of a imprisonment or both. on the advice of the Protected Disclosure public body is: Coordinator as to whether disciplinary or other 3. It is an offence for a person to obstruct • informed as to the substance of the action will be taken against a whistleblower. the Ombudsman in performing his allegations Where disciplinary or other action relates to responsibilities under the Act. The Act conduct that is the subject of the whistle- • given the opportunity to answer the provides a maximum penalty of 240 penalty blower’s disclosure, the disciplinary or other allegations before a final decision is made units ($24,000) or two years imprisonment or both. action will only be taken after the disclosed • informed as to the substance of any adverse matter has been appropriately dealt with. comment that may be included in any report 4. It is an offence for a person to knowingly In all cases where disciplinary or other action arising from the investigation, and has provide false information under the Act with the intention that it be acted on is being contemplated, the Secretary to the • his or her defence set out fairly in any report. DOI must be satisfied that it has been clearly as a disclosed matter. The Act provides demonstrated that: If the allegations in a disclosure have been a maximum penalty of 240 penalty units investigated, and the person who is the subject ($24,000) or two years imprisonment • the intention to proceed with disciplinary of the disclosure is aware of the allegations or or both. action is not causally connected to the the fact of the investigation, the protected making of the disclosure (as opposed to the disclosure coordinator will formally advise the 15. Review content of the disclosure or other available person who is the subject of the disclosure of information) the outcome of the investigation. These procedures will be reviewed annually to ensure they meet the objectives of the Act and • there are good and sufficient grounds that DOI will give its full support to a person accord with the Ombudsman’s guidelines. would fully justify action against any non- who is the subject of a disclosure where the whistleblower in the same circumstances allegations contained in a disclosure are clearly • there are good and sufficient grounds that wrong or unsubstantiated. If the matter has justify exercising any discretion to institute been publicly disclosed, the Secretary of DOI disciplinary or other action. will consider any request by that person to issue a statement of support setting out that The Protected Disclosure Coordinator will the allegations were clearly wrong or thoroughly document the process including unsubstantiated. recording the reasons why the disciplinary or other action is being taken, and the reasons why the action is not in retribution for the making of the disclosure. The protected disclosure coordinator will clearly advise the whistleblower of the proposed action to be taken, and of any mitigating factors that have been taken into account. Statutory Authorities DOI Annual Report 2003–04 187

DOI Contact information

Department of Infrastructure 80 Collins Street, Melbourne Victoria Australia 3000 Telephone: (03) 9655 6666 International: + 61 3 9655 6666 Facsimile: (03) 9655 6752 International: + 61 3 9655 6752 Internet: www.doi.vic.gov.au Postal address PO Box 2797Y Melbourne Victoria Australia 3001