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 © State of Victoria 2004 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