Department of Annual Report 2007-08

Department of Transport Annual Report DOI3659/08 Published by Department of Transport 121 Exhibition Street, www.transport.vic.gov.au © State of 2008 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, 121 Exhibition Street, Melbourne ISSN 1441-4805 Printed by Geon-Impact Printing, 69-79 Fallon Street, Brunswick VIC 3056 If you would like to receive this publication in an accessible format, such as large print or audio please telephone Public Affairs Branch on 9655 6000. Printed on environmentally friendly paper. Cover and text pages printed on LIFE Recycled. Building a safer, fairer and greener transport system for all Victorians to create a more prosperous and connected community. Contents

Abbreviations 6

2007-08 Annual Report 7

Secretary’s foreword 8

Department of Transport 12

Vision, mission and values 14

Transport portfolios 15

Organisational structure 18

Chief Finance Officer’s executive summary 25

Outcome One Public safety and security 26

Outcome Two Infrastructure delivery and management 38

Outcome Three Access and mobility 48

Outcome Four Rural and regional development 62

Outcome Five Efficient movement of freight 70

Outcome Six Integrated development 80

Outcome Seven Organisational capability building 90

Office of the Chief Investigator 96

Financial Statements 100

Appendices 170

4 Department of Transport Annual Report 2007-08

Abbreviations

AIFRS Australian Equivalents to EPA Environment Protection TAC Transport Accident International Financial Authority Commission Reporting Standards ESC Essential Services TPWS Train Protection Warning ALCAM Australian Commission System Assessment Model ESV Energy Safe Victoria TTA Transport Ticketing ARTC Australian Rail Track FTE full-time equivalent Authority GST Goods and Services Tax URTIC Urban Redevelopment BAV Association Victorian Transport Infrastructure ICT Information and Coordination CALD culturally and Communication linguistically diverse Technology VAGO Victorian Auditor- General’s Office CAG community action group IRI International Roughness CCTV closed-circuit television Index VCAT Victoria Civil and Administrative Tribunal CEO Chief Executive Officer LPG liquid petroleum gas VCEC Victorian Competition and CML CityLink Melbourne Ltd MMV Multimedia Victoria Efficiency Commission CSI Customer Satisfaction MOTC Meeting Our Transport V/Line V/Line Passenger Index Challenges Corporation CTO Chief Technology Officer MPTP Multi Purpose Taxi VicRoads Roads Corporation of Program DDA Disability Discrimination Victoria Act 1992 MPV Major Projects Victoria VicTrack Victorian Rail Track DET Department of Education MSV Marine Safety Victoria Corporation and Training NSW VicUrban Victorian Urban DIIRD Department of , NTS New Ticketing Solution Development Authority Innovation and Regional OCI Office of the Chief VIPP Victorian Industry Development Investigator Participation Policy DHS Department of Human OH&S/OHS Occupational Health and VPS Victorian Public Service Services Safety VRCA Victorian Regional DOI Department of PoHC Port of Hastings Channels Authority Infrastructure Corporation VTD Victorian Taxi Directorate DOT Department of Transport PoMC Port of Melbourne DPC Department of Premier Corporation and Cabinet PPP Public Private Partnership DPCD Department of Planning PTD Division and Community Development PTSV Public Transport Safety Victoria DPI Department of Primary Industries RFNR Rail Freight Network Review DSE Department of Sustainability and RFR Regional Fast Rail Environment SCSA Southern Cross Station DTF Department of Treasury Authority and Finance SEES Supplementary DVC Department of Victorian Environment Effects Communities Statement ED Executive Director SEITA Southern and Eastern Integrated Transport EES Environmental Effects Authority Statement SEMD Security and Emergency EMS Environmental Management Division Management Statement

6 Department of Transport Annual Report 2007-08 2007-08 Annual Report

29 October 2008 MP Minister for Public Transport Tim Pallas MP Minister for Roads and Ports

121 Exhibition Street Melbourne Victoria 3000

Dear Ministers Annual Report 2007-08 In accordance with provisions of the Financial Management Act 1994, I have pleasure in submitting for presentation to Parliament the Department of Transport’s Annual Report for the year ended 30 June 2008.

Yours sincerely Jim Betts Secretary Department of Transport

7 Secretary’s foreword

The creation of the Department of Our mission is to Transport reflects the government’s recognition of how critical transport is build a safer, fairer to economic prosperity, environmental sustainability and social justice. and greener transport The transport debate brings into particular focus much wider debates system for all about the choices confronting the Victorians to create Victorian community. These are often controversial choices about land-use a more prosperous planning in the context of a rapidly rising population, and about our and connected desire to maintain and improve living standards in a carbon-constrained community. future. We face difficult decisions about the allocation of scarce space on inner-city roads and about the competing demands on the state budget of portfolios such as health, education, transport and and order. We must continue to provide high standards of service to our state’s regional and rural communities whilst providing high levels of mobility for those who – by virtue of age, income or disability – do not have access to private cars. There are few more difficult or contentious areas of policy than these – and that is exactly what makes the work of the department and its people so interesting and so important.

8 Department of Transport Annual Report 2007-08 Over the last 12 months, the Victorian »» extended the Broadmeadows »» committed $110 million towards Government has: railway line by 10 kilometres to duplication of the Princes Highway Craigieburn – with more than 50 West from Waurn Ponds to »» increased to 18 the number of new services scheduled to and from the Winchelsea, $40 million to build trains under order for metropolitan city each day a new duplicated section of the service and leased five new maxi- Western Highway from Melton to »» opened EastLink five months ahead Bacchus Marsh, and $65 million to of schedule, slashing travel times »» introduced an extra 48 V/Line take the Ring Road from for people in the eastern and south services per week and increased Anglesea Road, near Hams Road, eastern suburbs to 50 the number of new V/Locity through the Blue Circle Quarry, to carriages under order for rural »» opened the Dandenong Bypass and connect with the Princes Highway services the Pakenham Bypass, reducing West near Draytons Road commercial and freight traffic in »» introduced the Early Bird scheme – »» started the deepening of the Port Dandenong and Pakenham offering free travel on metropolitan of Melbourne to ensure the future trains that arrive at their destination »» made progress on the Deer Park economic prosperity of the state. before 7 a.m. – to shift commuters Bypass and started the Monash M1 The project is expected to generate out of the peak upgrade, which will reduce travel more than $2 billion in economic times and increase safety on one benefits and create thousands of »» revamped the train timetable to of Melbourne’s most important additional jobs, estimated to peak create more than 200 new services corridors at over 2,000 during works across the network each week, resulting in six new morning peak »» opened the Bendigo Box inner-city »» signed an historic agreement services and three new afternoon road project, as well as the next with the Federal Government to peak services each day stage of the Calder Highway standardise the north east rail line, the Portland to Maroona line and »» introduced a new North Melbourne »» launched a new $112.7 million road the construction of the Wodonga Station to Melbourne University congestion plan to ease peak-hour rail bypass shuttle bus, providing direct shuttle pressure in inner Melbourne services every three minutes during »» committed to competitive and »» launched a new Road Safety the morning and evening peaks, sustainable rail freight including Strategy, Arrive Alive 2, that aims to transferring up to 1,000 passengers $56 million for line upgrades and reduce the road toll by 30 percent an hour and saving commuters at maintenance and a $21.4 million over the next 10 years least 10 minutes Rail Freight Support Package. »» overseen a major expansion in local »» announced the opening of the bus services in Melbourne’s middle future running of the and train and outer suburbs and in our networks to international tender regional centres »» begun action to trial up to 50 environmentally friendly taxis

9 2007-08 was a big year for the Second, we will engage constructively Transport Portfolio and the pace of and frequently with key stakeholders activity will remain formidable in the in local government, industry and the year that lies ahead as key long-term community sector. The department programs come to fruition and as must be responsive to a wide range the next wave of short-, medium- of perspectives, interests and views. and long-term planning gathers We do not have a monopoly on momentum. As it prepares itself for wisdom and should use transport’s another year of intense activity, the increased prominence in the public department will be endeavouring to sphere to enrich our own thinking improve its performance in several through open communication and key areas. open minds.

Our role is to facilitate the safe and Third, we will gear up to ensure efficient movement of people and the prompt delivery of services and goods: the only solutions that matter projects in a way that is both efficient will be integrated solutions which and productive. span the various transport modes. Fourth, and most importantly, the First, we will take an integrated, department must turn itself into holistic approach to transport a truly great place to work. I want planning, ensuring a greater level to lead a department that is full of of coordination between agencies people who are happy, ambitious, to improve transport connectivity. passionate, talented and committed to Agencies and authorities such improving the lot of all Victorians. This as VicRoads, SEITA, the TTA, is not some remote ambition: VicTrack and the Port of Melbourne it is my key personal target for the Corporation will play key roles as next 12 months and is within our partners in that integrated joint reach. I hope that anyone reading planning process, as will the land- this report, within or outside the use planning team in the Department department, will join us on what of Planning and Community promises to be an exciting journey. Development.

Jim Betts Secretary Department of Transport

10 Department of Transport Annual Report 2007-08 11 12 Department of Transport Annual Report 2007-08 Department of Transport

13 Vision, mission and values

DOT aims to move Victoria into the future by being a cohesive, responsive department that delivers the best possible transport infrastructure and services for Victorians.

Vision Values

To become the best performing Our values inform the way we work workplace in the Australian together as a department. public sector. Teamwork: We acknowledge and Mission support shared goals. We openly cooperate and communicate our Building a safer, fairer and greener knowledge and we share our expertise transport system for all Victorians and information within our work units to create a more prosperous and and across DOT, individually and connected community. We do this by: organisationally.

»» linking the transport system Diversity: We value our people’s of road, rail, air and sea channels diversity. We respect, recognise and to promote economic and social help cultivate each others diverse development through increased knowledge, skills and capabilities. mobility and access, and a more cost-effective freight Integrity: We are ethical, accountable and logistics sector and transparent in our dealings with colleagues, stakeholders and clients. »» promoting efficient and integrated transport services across different Commitment: We are committed to modes while managing road and provide high-quality services and are freight traffic growth in order to responsive to the changing demands address the needs of the travelling of the community, government and public and industry other stakeholders. »» delivering the government’s major Innovation: We support lifelong transport infrastructure investment learning, flexible working and projects innovation. »» providing strategic policy advice, analysis and support to government, our stakeholders and our community.

14 Department of Transport Annual Report 2007-08 Transport portfolios

Machinery of government changes As a result of machinery of government changes announced in April 2008 a new Department of Transport was created from the former Department of Infrastructure. Major Projects Victoria was transferred to the Department of Innovation, Industry and Regional Development (DIIRD). The outputs for Major Projects Victoria are contained in the 2007-08 Annual Report of DIIRD. Revenues and expenses associated with the outputs transferred out of DOT have been recorded in the Financials section of this report.

Ministerial Portfolios Public Transport Safety

DOT has two portfolios: Public Transport Safety Victoria and the Office of the Chief Investigator »» Minister for Public Transport, operate as independent bodies Lynne Kosky with administrative links to the »» Minister for Roads and Ports, department. Both organisations fulfil Tim Pallas financial reporting requirements through the DOT Annual Report however PTSV also prepares an Annual Safety Review to provide an overview of activities and highlights for the financial year. As such, PTSV no longer has a separate section within the DOT annual report. Key achievements of the Office of the Chief Investigator have been included in this annual report (pg 97).

15 Public Transport portfolio

The Public Transport portfolio oversees Victoria’s extensive public transport system and the implementation of the $10.5 billion transport and liveability statement Meeting Our Transport Challenges.

The Public Transport Statutory authorities portfolio covers: »» Public Transport Ticketing Body »» contract and lease arrangements (Transport Ticketing Authority – for train, tram, route bus, school TTA) bus services and infrastructure »» V/Line Passenger Corporation »» of the taxi industry (V/Line Passenger) »» regulation of public transport safety »» Victorian Rail Track Corporation (VicTrack) »» accessible transport services and facilities »» Southern Cross Station Authority (SCSA). »» management of large and complex Lynne Kosky MP transport infrastructure projects Minister for Public Transport crucial to state development.

Parliamentary Secretary for Public Transport

The Parliamentary Secretary for Public Transport provides policy support to DOT Ministers in relation to: »» taxi administration and reform »» bus routes review »» transport review.

Rob Hudson MP

16 Department of Transport Annual Report 2007-08 Roads and Ports portfolio

The Roads and Ports portfolio oversees the development and integration of Victoria’s extensive roads network and world-class commercial ports to help grow our state’s economy, cater for a rapidly growing population and to preserve the liveability and connectivity of our towns and suburbs.

The Roads and Ports portfolio The Minister for Roads and Ports includes: and the Minister for Public Transport »» maintaining and enhancing are the Victorian representatives on Victoria’s arterial road network the Australian Transport Council – the peak body for , »» responding to the Eddington East- State, Territory and New Zealand West Link Needs Assessment to coordinate and »» improving road safety for all road integrate national transport and users road policy issues. »» ensuring our ports remain Statutory authorities competitive and are integrated with »» Roads Corporation of Victoria Tim Pallas MP our transport network (VicRoads) Minister for Roads and Ports »» supporting ’s freight and »» Port of Hastings Corporation logistics industries (PoHC) »» growing alternative transport »» Port of Melbourne Corporation modes such as walking and cycling (PoMC) »» regulating marine safety for »» Southern and Eastern Integrated Victoria’s bays, coastline and Transport Authority (SEITA) waterways. »» Victorian Regional Channels Authority (VRCA).

Parliamentary Secretary for Roads and Ports

The Parliamentary Secretary for Roads and Ports provides policy support to DOT Ministers in relation to: »» port development and intermodal hubs »» regional road safety »» motorcycle safety.

Martin Pakula MP

17 Organisational structure

DOT Divisions

As a result of the machinery of government changes announced in April 2008, a new Department of Transport was formed from the former Department of Infrastructure. Major Projects Victoria was transferred to the Department of Industry and Regional Development (DIRD) while all other divisions remained as part of the Department of Transport.

A new organisational structure was announced on 17 June 2008 and DOT now has a total of 14 divisions and a project management office that contribute to the achievement of the Jim Betts Ray Van Kuyk department’s core outcomes. DOT Secretary Deputy Secretary has a staff of approximately 1,800 Jim Betts took up his position Ray has recently taken up the Deputy and, in conjunction with VicRoads, is as Secretary of the Victorian Secretary’s position, having been the responsible for public transport, roads Government’s newly formed Acting CEO of the Transport Ticketing and ports throughout Victoria. Department of Transport on 14 May Authority, and the General Manager 2008. Prior to his appointment as of Programs, Systems and Finance Secretary, Jim had served as Director within the Public Transport Division of Public Transport overseeing over the last two years. train, tram, bus and taxi operations throughout Victoria. Ray has extensive experience in the development and delivery of large Jim has extensive experience in complex strategies and programs commercial and policy development, of work in a range of differing particularly in public transport, environments, including Defence, with both the Victorian and UK Information Communications and Governments. Technology and Transport.

Jim graduated from Oxford in 1987 Ray has spent some 25 years in the with a BA in modern history and project environment, including 14 then from Imperial College, London years in the Australian Army, which he University in 1988 with a management left in 1994 as a Major. Senior general science degree. He worked with management roles at NEC and Fujitsu the UK Government in roles such Australia followed, whereupon Ray as Assistant Private Secretary to commenced his involvement with the the Secretary of State for Transport Victorian Government in 2002. and Policy Adviser in the Railways Directorate. Ray has a Masters in Project Management and a Post Graduate In Victoria Jim has also worked as Diploma in Telecommunications and Director, Transport Reform in the Systems Management. Department of Treasury and Finance (DTF), Assistant Director in the Project Development and Commercial Division of DTF and Deputy Director of Public Transport.

18 Department of Transport Annual Report 2007-08 Public Transport Commercial

The role of the Public Transport The Commercial Division has the lead Division (PTD), as the government- role for commercial activity for the appointed coordinator of Victoria’s Department of Transport. It advises public transport system, is to on major commercial transactions manage contractual and regulatory across the department and with relationships (rail, tram and bus some agencies, providing support operators and others) effectively to and assistance on business activity meet the government’s objectives for as required . The division also has public transport. PTD works closely overall responsibility to manage the with other parts of government, world wide tender for the operation councils, external stakeholders and of Melbourne’s tram and train community groups to achieve this. franchises, as well as procuring new arrangements for regional and school PTD has a key role to play in bus services across Victoria. facilitating the development and implementation of major Ross Alexander and projects which either enhance Hector McKenzie Executive Director the public transport system or Director of Public Transport impact upon it. Ross joined the Public Transport Division of the Department of Hector McKenzie Infrastructure in 2003. His primary Director of Public Transport role was working on the 2003 rail re-franchising, informed inpart by his Following the formation of the previous experience with the National Department of Transport, Hector Express Group. McKenzie was appointed as the Director of Public Transport. Following the successful negotiation with Connex and for new Hector has had many years franchises, Ross moved to TTA to experience including managing head up the commercial procurement Victoria’s bus service contracts for process for the New Ticketing System, 10 years, managing significant before taking up the position of Deputy aspects of the privatisation of the Director, Commercial in PTD. Since former Public Transport Corporation then, Ross has been in charge of the (including leading the sale of the tender for bus shelter advertising and Yarra Trams business), planning the recently completed negotiation public transport for the 2006 of new metropolitan bus contracts. Commonwealth Games and In his new role as Executive Director, overseeing the commercial Commercial, Ross is leading the Ross Alexander arrangements for Victoria’s rolling tender for operation of Melbourne’s Executive Director stock procurements. train and tram systems and continues to oversee the bus contract Prior to his current role he was development for regional, school responsible for managing the service and orbital bus services. Ross has a arrangements with Connex and Commerce degree and a Law degree Yarra Trams, Melbourne’s train and from Melbourne University. tram operator respectively. The role encompassed procurement of new rolling stock, development of infrastructure requirements necessary to meet growth and overseeing of issues related to access to public transport by people with disabilities.

19 Freight, Logistics Integrated and Marine Transport Planning

The efficient movement of freight and The Intergrated Transport Planning commercial traffic on Victoria’s roads, Division seeks to achieve whole rail and port systems is essential for of government coordination of the state’s continued economic growth transport and land use planning and prosperity. The Freight, Logistics through strengthening links and Marine Division is responsible for between key transport and land use delivering the government’s policies authorities including DOT, VicRoads, in the ports, maritime, freight and the Department of Planning and logistics sectors in partnership with Community Development and the agencies, industry stakeholders and Department of Sustainability and the community; and for the effective Environment. It is also tasked with management of marine safety. Marine strengthening the state’s transport Safety Victoria reports directly to the policy and planning capability and Executive Director of the Freight, better integrate activities across Terry Garwood Logistics and Marine Division. The the respective transport modes Executive Director division encourages better use of (road, rail, air and marine). This Victoria’s freight network, plans division has replaced the former for freight growth and works to Office of the Coordinator General overcome critical bottlenecks through for Infrastructure. infrastructure investment. Meredith Sussex Terry Garwood Executive Director Executive Director Since her appointment in August Terry has been an officer of the 2006 as Coordinator-General, Australian and Victorian Public Infrastructure, Meredith Sussex Services for almost 29 years. Terry has worked to achieve whole of commenced this role in March government coordination of transport 2007. Prior to this Terry held the and land-use planning. In early position of Regional Director, Loddon 2008, Meredith took on the role Mallee Region, of the Department of Program Coordinator for the of Human Services from February Federal Government’s Australia 2000 until March 2007. Terry also 2020 Summit. With the creation of held the positions of Regional the new Department of Transport in Director, Hume Region, Department April 2008, Meredith assumed the of Human Services (three years) and role of Executive Director, Integrated Director of the Victorian Office of Transport Planning, continuing the Meredith Sussex Aboriginal Affairs (eight years). Terry strong focus on integrated planning. Executive Director has occupied senior management From 2002 to 2006, Meredith positions in the Australian Public was Executive Director, Office of Service in the Department of Commonwealth Games Coordination. Employment, Education and Other previously held roles include Training, the Aboriginal Development Director of Employment, Training Commission and Aboriginal Hostels and Tertiary Education and Deputy Limited. Terry holds a Diploma of Arts Secretary of Education from 1998 and Graduate Diploma of Education to 2002, and Head of the Cabinet from Latrobe University. Office and Deputy Secretary of the Department of Premier and Cabinet from 1994 to 1998.

20 Department of Transport Annual Report 2007-08 People and Organisational Policy and Development Communications

The People and Organisational The Policy and Communications Development Division was created Division has been established to to strengthen and support DOT’s lead portfolio-wide transport policy performance by building capability, development and provide policy by understanding the workforce, and communications advice across encouraging diversity, developing the entire department. The division DOT people and promoting coordinates the delivery of the employee health and better people TravelSmart program and the Local management. The People and Area Access program, and raises Organisational Development Division awareness and understanding of the has a critical role in helping the department’s programs, projects department meet its current and policies among key clients, and future challenges. stakeholders and the community.

Robyn Clark Michael Hopkins Robyn Clark Executive Director Executive Director Executive Director Robyn Clark was appointed Michael Hopkins was appointed Executive Director of the People and Executive Director of the Policy Organisational Development Division and Communications Division in June 2008. Robyn joined the in June 2008, having joined the Department of Transport having run Department of Infrastructure in her own strategic human resources 2000. Michael worked as Director of consulting business for the past seven Market Development in the Public years. Robyn has held senior roles Transport Division in 2004. From within the HR field including Victorian late 2007 to June 2008 Michael Manager of a global HR Consulting was Director of DOI’s Corporate company; Regional and National Public Affairs, responsible for the Manager of Employee Relations/ department’s communications and Human Resources for Telstra and media management. Prior to 2000, also worked with the Department of he held a number of positions in the Human Services and Department of Australian Public Service and the ACT Health for 11 years. Robyn has been Government, including senior roles nominated for Telstra’s Business in strategic and environmental policy Woman of the Year Award for the and several years as Chief of Staff to past six years and holds an Associate the ACT Minister for Urban Services. Diploma in Welfare Studies, Bachelor His career has focussed on strategic of Arts (Human Services), Graduate land-use planning; transport, Michael Hopkins Diploma in Adult Education and infrastructure and environment policy; Executive Director Training, Masters Degree in Education and more recently, communications. (Workplace) and has successfully Michael has a Bachelor of Arts in completed an Executive MBA subject philosophy and a Masters Degree in in Strategic Human Resource Public Administration. Management.

21 DOT Legal Intergovernmental

DOT Legal creates, maintains and Relations enforces the policy, legal, regulatory Intergovernmental Relations and environment for the Division is responsible for managing delivery of transport for Victoria. Commonwealth, state and regional The division provides critical relations in transport. advice and assistance on matters such as commercial transactions, risk, compliance, prosecutions Lachlan McDonald and investigations and supports Executive Director parliamentary and cabinet processes. Lachlan has worked in infrastructure James Lavery and industry policy roles in the public Executive Director and private sectors for more than 20 years, including at the Master James Lavery was appointed as Builders Association of Victoria, Executive Director of DOT’s Legal Regional Development Victoria James Lavery Division and General Counsel for and as a consultant to Melbourne Executive Director DOT in June 2008. James joined Water. He was previously Director of the Department of Infrastructure Regional Infrastructure Development in 2004, as Commercial Counsel for the Victorian Government and for the Public Transport Division. In Chief of Staff to the former Minister 2005, he was appointed as General for Transport and Major Projects. Manager of the Public Transport Lachlan joined the Department of Division’s legal branch. Before joining Transport in April 2007. His current the Department of Infrastructure, role focuses on providing the James was in private practice at law Secretary, Leadership Committee firm Phillips Fox, and was made a and Ministers with advice on Senior Associate of that firm in 2001. Commonwealth policy and investment James has practised in many areas processes, identification of national of law, including administrative law, infrastructure priority projects and commercial law, major projects law coordination of the transport portfolio and litigation. James holds a Bachelor input to the Council of Australian of (Honours) from Monash Governments’ transport reform University and a Bachelor of Arts in agenda. history from Melbourne University.

Lachlan McDonald Executive Director

22 Department of Transport Annual Report 2007-08 Infrastructure Projects Finance

The Finance Division supports the The Infrastructure Projects Division is depatment’s internal and external responsible for the development and financial management and financial delivery of major rail infrastructure reporting responsibilities. This projects within the government’s includes budget management, policy framework of Growing Victoria financial operations and associated Together. A further policy driver is the systems, taxation and financial government’s Meeting Our Transport management compliance. Challenges plan, for which the division manages several projects including the Dynon Port Rail Link, Clifton Hill Systems and Rail Project and the Dandenong Rail Information Services Corridor Project. The Systems and Information Services Security and Emergency Division manages the department’s information and communications Management technology systems and services, including the delivery of projects The Security and Emergency involving electronics and computing Management Division (SEMD) is systems. It leads the development of responsible for providing security DOT’s information and communication and emergency coordination, advice technology strategy, enterprise and support to DOT and contributes architecture and to the whole of Victorian Government framework. This division guides IT security and emergency management investment and helps to maximise processes. opportunities for information, URTIC business process and technology use. Urban Redevelopment Transport Business and Infrastructure Coordination (URTIC) coordinates the delivery of projects Executive Services and the development of Transit This division supports the functions Cities. Transit Cities is a government of the department in areas such program to revitalise key suburban as corporate plannng, library and regional centres through services, property procurement and improved infrastructure and urban contracting, , record design to create better quality places and document management, online for people to live, work, relax and visit. services, administrative services and ministerial services.

23 Department of Transport Organisational structure, 30 June 08

Lynne Kosky MP Tim Pallas MP Gary Liddle Minister for Public Transport Minister for Roads and Ports CEO VicRoads

Jim Betts Ray Van Kuyk Secretary Deputy Secretary Department of Transport Alan Osborne Director Public Transport Safety Victoria

Ian McCallum Chief Investigator Barbara Flett Transport and Marine Safety Investigations General Manager (Acting) Project Management Office

Len Gainsford Director Audit and Assurance URTIC Director Frank Frank Robyn Clark Kevin Davey Kevin David James Lavery Terry Garwood Terry Brandon Mack Public Transport Ross Alexander Murray Cullinan Robert Oliphant General Manager DOT Commercial Meredith Sussex Michael Hopkins Executive Director Executive Director Executive Director Executive Director Executive Director Executive Director Hector McKenzie Executive Director Executive Director Lachlan McDonald Chief Finance Officer (Acting) General Manager (Acting) Executive Director (Acting) General Manager Intergovernmental Relations DOT Legal General Counsel Policy and Communications Policy Freight, Logistics and Marine Freight, Integrated Transport Planning Integrated Transport Infrastructure Projects Division Business and Executive Services Systems and Information Services Security and Emergency Management People and Organisational Development People

24 Department of Transport Annual Report 2007-08 Chief Finance Officer’s executive summary

The 2007-08 operating statement Rail assets created by DOT’s capital The operating statement includes shows an operating surplus of $205 expenditure are transferred by way of revenue received by DOT as payments million largely due to Appropriation equity (see note 20) to VicTrack as the for outputs delivered. The delivery of revenue of $161 million received for entity responsible for reporting the DOT’s outputs is measured against expenses incurred in prior years. State’s rail infrastructure network. agreed output targets and the This result compares with the DOT’s Similarly, assets created by DOT’s Treasurer certifies revenue based on operating loss of $330 million in 2006- funding of road programs will be the level of performance. In 2007-08, 07. reflected in the accounts of VicRoads. DOT managed its outputs within its As such these assets are not reflected available resources. DOT’s operating expenses reduced in the table below. from $4.2 billion in 2006-07 to $3.8 The financial statements presented billion in 2007-08 reflecting the record A machinery of government change later in this report are prepared expenditure experienced in 2006-07 gave rise to the transfer of the in accordance with the applicable due to an aggressive road program functions of Major Projects Victoria Australian accounting standards and and continued good weather. (MPV) to the Department of Innovation Financial Management Act 1994. They Industry and Regional Development relate specifically to the operations The majority of DOT’s expenditure is on 30 April 2008. However the of DOT and include the operations on payments to transport services financial reporting functions of MPV of the body corporate ‘Secretary to providers including $0.9 billion for remained with DOT until 30 June DOT’, the offices of the Director of rail, $1.2 billion for road and $0.6 2008. Public Transport, the Director of billion for bus services. Note 2 of the Public Transport Safety and the Chief financial statements provides more DOT, via MPV, assumed Investigator Transport and Marine detail on DOT’s expenditure on the responsibilities for the Kew Safety Investigations. outputs supplied to government. Residential Redevelopment site These outputs include Public Safety project. Additionally, the social All other agencies and and Security, Public Transport housing properties from the former are separate reporting entities and Services, and Infrastructure Planning, Commonwealth Games Village were therefore prepare their own annual Delivery and Management. transferred to the Port Phillip Housing reports (including audited financial Association. statements). DOT capital expenditure for 2007- 08 included major projects such as The table below shows the financial the Dynon Port Rail Link, Channel results for the last 6 years. Deepening and the purchase of metropolitan and regional rolling stock.

The table below shows the financial results for the last 6 years.

OPERATING REVENUE 2008 2007 2006 2005 2004 2003 $m $m $m $m $m $m - Appropriations 3,994.0 3,705.3 3,311.6 2,800.7 2,504.0 2,442.5 - Other revenue 336.8 305.6 305.5 236.4 540.1 291.1 Total operating revenue 4,330.8 4,010.9 3,617.1 3,037.1 3,044.1 2,733.6 Operating expenses 4,125.4 4,341.0 3,384.7 2,816.3 3,390.2 2,777.3 Operating surplus (deficit) 205.4 (330.1) 232.4 220.8 (346.1) (43.7) Total assets 1,641.7 1,388.2 1,385.0 1,161.7 1,058.6 945.9 Total liabilities 1,014.2 989.2 664.4 607.9 612.4 237.2 Net assets 627.4 399.0 720.6 553.8 446.2 708.7

25 26 Department of Transport Annual Report 2007-08 Outcome One Public safety and security

127 Public safety and security

Victoria has one of the safest Road safety transport systems in the Deaths and serious injuries resulting from road crashes have a devastating world. DOT, in conjunction impact on individuals and local communities. VicRoads works in with transport partners partnership with the Transport Accident Commission (TAC), Victoria such as VicRoads, VicTrack Police, Department of Justice, and rail operators, works the Department of Transport, local communities and other key diligently to upgrade stakeholders to deliver Victoria’s road transport infrastructure safety strategy, arrive alive 2008-2017. Victoria’s road toll for 2007 was and systems to improve 332, its second lowest annual road toll since comprehensive records safety across the network. began. For the 2007 calendar year, Victoria delivered the best state road safety record in Australia with only 6.4 deaths per 100,000 head of population. This is a 30 percent reduction compared with the rate of 9.2 deaths per 100,000 population at the start of Victoria’s road safety strategy, arrive alive! 2002–2007. The rate for the rest of Australia in 2007 was 8.1 deaths per 100,000 head of population.

From January 2002 to December 2005 there was a seven percent reduction in the number of Victorians seriously injured on our roads. A new electronic crash reporting system introduced by Victoria Police in December 2005 means it is not possible to directly compare pre- and post-December 2005 serious injury data. The new reporting system reveals a nine percent increase in serious injuries between 2006 and 2007. The latest available data at 30 June 2008 showed an 11 percent reduction in serious injuries in the first quarter of 2008 compared with the first quarter of 2007.

Full details of VicRoads’ road safety achievements are outlined in VicRoads 2007–08 Annual Report which is available at www..vic.gov.au

28 Department of Transport Annual Report 2007-08 Highlights included: Accident reform »» commencing work to reduce speed limits from 100 kph to 80 kph at »» coordinating the development of The Accident Towing Services Act 73 locations, with all sites to be Victoria’s new road safety strategy, 2007, which provides for safer and completed in 2008. arrive alive 2008-2017 which was more efficient towing services, was launched in February 2008 developed to improve road safety The Don’t Risk It! level crossing and customer service for accident »» delivering 245 projects across advertising campaign was updated victims. The Act introduces modern Victoria under the Safer Roads to reference new safety measures industry accreditation for accident Infrastructure Program and State such as rumble strips and advanced towing, whilst removing unnecessary and Federal Blackspot programs warning signs and ran across regulation on the trade towing sector. metropolitan and regional media in »» progressing the implementation of As a result of the Act, regulatory December 2007 and January 2008. the Graduated Licensing System responsibility moved from the Director including developing a driving guide of Public Transport to VicRoads Level crossing upgrades for new P plate drivers and their on 3 September 2007. VicRoads’ In the 2005-06 State Budget, the parents that encourages personal responsibility for managing traffic Level Crossing Upgrade Program safety strategies and a new drive congestion makes it well placed to was allocated $10.8 million over four test for introduction on 1 July 2008 deliver safer, efficient and more timely years, on top of the annual investment accident towing services. »» completing a trial of reduced speed of up to $3 million. Meeting Our limits at strip shopping centres Transport Challenges allocated a resulting in the announcement Railway crossing safety further $208.7 million over 10 years of an ongoing program to reduce Level crossing safety package to improve railway crossing safety. speed limits in high pedestrian activity areas Significant progress was made in In 2007-08, 46 railway crossings were delivering the State Government’s upgraded under the Level Crossing »» playing a lead role in the $33 million level crossing Upgrade and Railway Pedestrian introduction of legislation in improvement package, announced Crossing Control Upgrade Programs, December 2007 enabling the Heavy following the tragic accident at including 37 road/rail crossings Vehicle Driver Fatigue Management Kerang in June 2007. Achievements and nine pedestrian crossings. reform to be implemented from in 2007-08 included: A further 13 pedestrian railway 29 September 2008. The package crossings were made compliant introduces ‘chain of responsibility’ »» installation of automated advanced with the Commonwealth Disability principles to manage heavy vehicle warning signs at five locations, with Discrimination Act 1992. driver fatigue signs to be installed at a further 48 by June 2009 ALCAM »» completing the Enhanced Motorcycle Crash Investigation »» installation of rumble strips at DOT used the Australian Level Project which has provided a more 200 locations Crossing Assessment Model (ALCAM) practical understanding of why »» increased penalties for railway method of risk assessment to survey motorcycle crashes occur and the crossing infringements introduced 2,927 public road/rail and pedestrian factors that affect their severity in April 2008, along with a new level crossings on the Victorian rail network, which extends into southern »» partnering with CityLink and infringement penalty for racing New South Wales, and includes EastLink to develop a public trains at railway crossings Victorian tourist and heritage rail education campaign called Share »» an accelerated works program to lines. This assessment model helps to the road, reminding all road users eliminate ‘line of sight’ problems identify risk exposure at each crossing to respect others on the road and such as overgrown vegetation at to provide a basis for prioritising act responsibly, particularly when approximately 75 level crossings upgrades. It helps road and rail using tunnels. safety authorities to identify safety »» trial of enforcement camera improvements which will mitigate technology at one metropolitan risks on their network. All surveys and one regional location were completed on schedule by December 2007.

29 Annual fatalities

arrive alive arrive alive 2002-2007 2008-2017 500 arrive alive arrive alive 444 2002-2007 2008-2017 450500 444 397 400450 343 346 397 330 337 332 350400 346 343 337 332 300350 330

250300

200250

150200

100150

10050

500 2001 2002 2003 2004 2005 2006 2007 2008 0 2001 2002 2003 2004 2005 2006 2007 2008

Annual serious injuries arrive alive arrive alive 2002-2007 2008-2017 7,829 8,000 arrive alive arrive alive 7,152 2008-2017 2002-20076,923 6,723 6,696 7,829 7,0008,000 6,396 6,237 7,152 6,923 6,723 6,696 6,0007,000 6,396 6,237

5,0006,000

4,0005,000

3,0004,000

2,0003,000

1,0002,000

1,0000 2001 2002 2003 2004 2005 2006 2007 2008 0 2001 2002 2003 2004 2005 2006New crash 2007 reporting 2008system

New crash reporting system

30 Department of Transport Annual Report 2007-08 Safety Interface Agreements During 2007-08, improvements Improved driver and passenger were made to the intruder detection safety measures Legislation was passed in December and passenger safety systems in 2007 which provides for Safety the Melbourne Underground Rail The Taxi Industry Safety Taskforce Interface Agreements to deal with Loop. Further improvements will be (TIST) chaired by the Director of the intersection of rail and roads. completed in 2008-09. Public Transport and including The Agreements, between rail representatives of the Victorian Taxi infrastructure managers, road In 2007-08, a feasibility study was Directorate (VTD), Victoria Police, the authorities and, where necessary, completed into delivering commercial Equal Opportunities Commission, private landholders, are based on FM radio broadcasts into the WorkCover and the Multicultural risk assessments and aim to ensure Melbourne Underground Rail Loop Commission of Victoria issued an there is a clear process for allocating for public convenience and emergency eight point Victorian Taxi Safety responsibilities in order to improve communication. A 10-channel system Strategy covering the following: safety at level crossings. Victoria was is planned for deployment during »» introducing conflict resolution the first to pass these 2008-09. training to the Course in Taxi Driving provisions, which will take effect nationally in 2010. Tram service improvements »» safe taxi ranks for Richmond, St. Kilda and Bendigo The Tram Supervisory Control and Systems and Data Acquisition (SCADA) project is »» new security cameras technology communications replacing the tram traction power to be progressively phased in from control system, with funding provided January 2009 Train safety and communications in the 2008-09 budget. Tender »» driver protection screens The new Metropolitan Train Safety documents and specifications for the Communications System will use a Tram SCADA system were completed »» a taxi driver safety pack for all secure digital radio system to improve ready for tender in February 2008. active taxi drivers including a driver the coverage, capacity and reliability safety card and the handbook In November 2007, two trams were of voice communications and enable Victorian Taxi Driver Safety: involved in a trial of external video data exchange across the rail system. Your Guide to a Safer Workplace cameras called TramCam to assess In February 2008, three short-listed how to best enforce road rules to »» promotion of victims of crime parties submitted tenders and tender improve tram passenger safety. It support services to active taxi evaluation is in progress. The main showed how footage can be used as drivers. A safer workplace via a contract covering the GSM-R radio evidence of infringements, such as Victorian WorkCover Authority network portion of the system is cars passing trams when passengers program of education and planned to be awarded in October are alighting. awareness around occupational 2008 with system acceptance planned health standards and requirements for December 2010. Taxi safety for taxi drivers, operators and A project to replace analogue CCTV networks Taxi service improvements recording technology with digital »» ongoing forums for taxi drivers recorders at all metropolitan train A specification has been developed to through the Victorian Taxi Drivers stations began in July 2007. A supply upgraded safety cameras for Association (VTDA). The VTD has procurement process, including new taxis from 2009. also recruited a Taxi Driver Liaison equipment trials, was completed in Officer for information and June 2008 and a preferred supplier Taxi industry reform driver support. has been engaged. Amendments were made to transport The Flinders Street Station security/ legislation to improve the taxi industry access control system was upgraded through the introduction of tougher to enhance security and has been touting laws. The changes have operational since February 2008. reduced annoyance of passengers New security cameras were installed and made the system fairer for taxi on three floors covering lifts and drivers. These reforms complement stairs, and a security workstation the implementation of accreditation- was established for the ground floor based initiatives to improve taxi security guard. industry services.

31 Following on from the Victorian Taxi Passenger safety Regional train safety Safety Strategy announced in 2007, a range of safety measures were Personal safety Regional train – N-, S- and announced in late April to further on public transport Z-class door safety improve taxi driver and passenger DOT, Victoria Police and rail operators safety. These include pre-paid fares This $8 million project will provide are working to reduce crime and between 10pm and 5am, mandatory automatic-locking doors on regional improve safety at public transport driver protection screens and free V/Line trains to stop passengers locations. Victoria Police statistics conflict resolution workshops. injuring themselves by opening the show an increase in reported crime on These initiatives will be introduced door of a moving train. 54 cars were the public transport system between later in 2008. modified, by 30 June, 2008, with the 2006-07 and 2007-08. Robberies rest due for completion by the end Further details of achievements to at public transport locations have of 2008. improve the taxi industry are increased by 24.2 percent, with the included in Outcome Three. increase in the number of people V/Line accreditation carrying personal electronic devices, In June 2008, V/Line Passenger and such as mobile phones and ipods, a Rail Network Access (RNA) achieved possible contributing factor. accreditation under a new Rail Safety Authorised officer deployment Act 2006 introduced in Victoria in 2006. The government recognises the V/Line authorised officers pilot need for a visible staff presence on A six-month pilot deployment of Melbourne’s rail network to meet authorised security officers on the passenger expectations for customer regional network commenced in April service and security. Connex, in 2008 to address concerns regarding partnership with DOT and Victoria passenger safety at regional train Police, has initiated an ‘intelligence/ stations, particularly late at night. incident’ based approach to staff deployment, enabling authorised officers to better respond to incidents as they occur and to address recurrent anti-social behaviour in ‘trouble spots’.

Offences on public transport 1998-99 to 2007-08

14,000

12,000

10,000

8,000

6,000

4,000 NUMBER OF OFFENCES 2,000

0 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 FINANCIAL YEAR

32 Department of Transport Annual Report 2007-08 Bus safety Security and emergency Incident management coordination The Improving Bus Safety in Victoria management With relocation to 121 Exhibition discussion paper, which proposes Security risk management and a modern, flexible legislative Street, DOT consolidated its incident compliance regime for declared management and coordination framework to meet Victoria’s essential service operators transport needs, was released in May functions to ensure the provision 2008. The submissions, consultations Public transport operators that are of advice to government and and briefings which followed indicate declared essential services under industry during major incidents strong support for the proposals. Part 6 of the Terrorism (Community and emergencies such as the The framework is designed to embed Protection) Act 2003 (the Act), have Burnley tunnel crash, the April a safety culture in the growing and continued to develop their capabilities 2007 windstorms and the Gippsland dynamic bus industry. in security risk and emergency. This floods. DOT introduced a new has contributed to an improvement incident management web-based The paper contained a detailed reform in the sector’s overall preparedness communications system to allow for proposal to improve bus safety in and resilience, and its interaction with contact with all stakeholders during Victoria including: other essential services such an incident. as energy. »» an expanded definition of the type Security and continuity network of vehicles that quality as “” Security and emergency DOT continued its security and »» safety duties on several bus management exercises continuity network for transport as the industry participants, not just DOT facilitated government and principal forums for government and operators industry involvement in national and industry to coordinate sector-wide risk, security, business continuity and »» accreditation for commercial state exercise programs including emergency management issues. services (including commercial the National Counter-Terrorism Investigation and Consequence “courtesy services”) Public transport security Management Exercise Nexus in capital works »» a wide array of enforcement powers February 2008. These exercises and sanctions for the Director, helped develop industry and DOT continued to implement the Public Transport Safety (as exists government emergency response capital works programs announced in for the rail sector). preparedness. 2005-06 and 2006-07 relating to public transport security such as CCTV A new Bus Safety Bill based on these Business continuity retrofits and upgrades and initial initiatives is due to be introduced into purchase of rail network emergency Parliament in late 2008. DOT commenced a complete review and reorganisation of business response vehicles. continuity program arrangements with a consolidated focus on IT disaster recovery, divisional plans and pandemic planning. Pandemic planning DOT assisted transport operators in their development of influenza pandemic planning measures through workshops and regular information. DOT identified and commenced prioritisation of planning measures within the department as part of its Business Continuity Management program.

33 34 Department of Transport Annual Report 2007-08 Marine Safety Victoria Recreational boating Boating Safety and and fatalities Facilities Program Responsibilities Over the last four years there $5 million has been allocated in The core functions of MSV are to: was an average of 192 hospital 2007-08 to the Boating Safety and admissions and 471 emergency Facilities Program. The program, in »» set standards for the design, department presentations as a result its eighth year, has funded hundreds construction and equipment of recreational boating accidents. of boating infrastructure projects of commercial vessels to This represents a 30% increase from and initiatives such as boating safety maintain structural integrity and 2004-05 to 2005-06 (note: there is a research, boating and personal water seaworthiness 12 to 18 month delay for data). This craft safety education and provision »» determine crewing for vessels and increase is due to better case capture of marine distress and safety issue certificates of competency by hospitals and more hospitals communications. collecting data. »» set safety standards related to Since 2001-02, the Victorian recreational vessels and zoning Over the last 10 years Victoria Government has reinvested over rules has averaged eight recreational $31 million of recreational boat »» license pilots and harbour masters boating deaths a year, with fatalities operator licensing fees and vessel and determine standards for the significantly decreasing over recent registrations into this program. training of pilots, pilot exempt years as the graph below shows. masters and harbour masters Despite best efforts, there were »» investigate marine incidents nine fatalities during 2007-08. This and accidents and implement represents 5.73 fatalities per 100,000 appropriate action on the findings registered recreational vessels. Marine Safety Victoria continues to »» develop, review, coordinate and develop and deliver marine safety manage the Victoria marine programs to help reverse the pollution contingency plan recent increase. »» promote education and training on marine safety matters »» commission and sponsor research in marine safety matters.

Recreational boating fatalities per 100,000 registered vessels

18

15.83 16 13.44 14

12 11.23

10 8.68 8.51 7.73 8.57 8.34 7.43 7.31 8 6.12 5.73 6 5.47 5.48 5.04 4.77 4.51 4 2.5 1.88 2

0 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

35 Terry Spicer Manager, Railway Crossing Safety and Emergency Response

36People Department Profile of Transport Annual Report 2007-08 I suppose you would say I am one being trialled at Bentleigh. It was of Victoria’s railway crossing safety pleasing to discover that Australia experts. I provide advice to the Minister and Victoria are considered world and Director of Public Transport about leaders in many facets of railway everything to do with railway crossing crossing safety. I also travelled to the safety. UK and liaised with experts there.

A couple of years ago we were Part of my job is to make sure that upgrading 12 railway crossings a year the recommendations of the three and now we are doing over 60. bodies which investigate deaths on railway crossings – the State Coroner, In 2007-08, we upgraded safety the Australian Transport Safety controls at 45 road and pedestrian Bureau and the Office of the Chief railway crossings and made 13 Investigator, Transport and Marine – pedestrian crossings DDA (Disability are appropriately addressed. Discrimination Act 1992) compliant. We also installed five active advanced Even though I am a bureaucrat now, warning signs – which will flash to I still consider myself a railway man warn cars of a train crossing well and have had 47 years experience in before the crossing controls activate the industry. I started my career at – and, along with VicRoads, installed 16 with the old . I rumble strips at 200 railway crossings then worked on the iron ore railways with stop or give-way signs. in . I moved back to Melbourne and worked for the State I am also a member of the Australian Transit Authority and then the Public Level Crossing Assessment Model Transport Corporation. I helped set (ALCAM) National Committee. The up VicTrack and then in 1999 moved committee has developed a national to the Office of the Director of railway crossing risk assessment Public Transport. model to identify public risk and to assist with prioritising the state In 1967 I was the first of the new railway crossing control annual breed of station masters and at 22 upgrade program. was the youngest station master ever appointed. Now, I want to be the new Between December 2005 and breed of mature worker. I want to keep December 2007 we completed almost working until I have worked for the 3,000 ALCAM field surveys for every railways for 50 years, which I will public road and pedestrian railway hit in 2011. crossing in Victoria including those level crossings on Victorian rail lines Between the 1960s and the 1990s, which cross the border into NSW and we reduced our motor vehicle fatal on nine heritage and tourist rail lines. accidents at railway crossings by The results of these are being analysed 85 percent in Victoria, compared and reviewed to identify potential risk to the national average of 70 percent. mitigation treatments at all railway But the problem is that this figure crossings. has plateaued from an average of 22 a year to an average of four a year. I have just come back from attending One of the things that excites me is the 10th World Railway Crossing Safety how the application of new technology Conference in Paris. There were 166 will help us reduce this figure delegates from 37 countries at the to zero deaths. Victoria is leading symposium. I delivered a paper on a the trialling of a number of these case study of $1.2 million of railway new technologies. pedestrian crossing safety initiatives

37 38 Department of Transport Annual Report 2007-08 Outcome Two Infrastructure delivery and management

239 Infrastructure delivery and management

Some of DOT’s projects are delivered Safe, modern and efficient in conjunction with the private rail and road infrastructure sector, while statutory authorities, such as VicRoads, also contribute is vital to connect Victorian to this Outcome. Summaries of the achievements of these authorities are communities, transport included in this Outcome, with further detail available from their respective freight and keep our economy annual reports. competitive. This Outcome The outputs of Major Projects reports on achievements Victoria are reported in the 2007-08 annual report for the Department in delivering and managing of Innovation, Industry and Regional Development following machinery of infrastructure projects. government changes in April 2008. Completion of the Craigieburn rail electrification and completion of the EastLink, Australia’s largest urban road project, were among the highlights of 2007-08.

40 Department of Transport Annual Report 2007-08 Channel deepening Clifton Hill Rail Project Services commenced on 30 September 2007, with trains seven In February 2008, the Port of The $52 million Clifton Hill Rail days a week from early morning Melbourne Corporation began Project is the second stage of the to late at night and most services deepening Melbourne’s shipping South Morang Rail Extension Project. connecting directly to the . channels to allow 14 metre draught It will improve the efficiency and vessels access at all stages of the reliability of Epping and Hurstbridge Dandenong Rail Corridor Project tide within Port Phillip Bay and the train services and provide capacity Yarra River. for the future rail extension to South The Dandenong Rail Corridor (DRC) Morang. The project involves: is a vital public transport link for An independent environmental south-east Melbourne and serves a monitor is overseeing the project’s »» duplicating approximately 750 rapidly growing area of more than strict environmental conditions, with metres of track between Clifton Hill half a million people. Enhancements deepening expected to be completed and Westgarth Railway Stations to rail services along the DRC will during summer 2009-10. As at 30 »» constructing a new 170 metre be provided by the staged delivery of June 2008, the project was ahead of rail bridge over the Merri Creek, projects. This approach will minimise schedule, within all environmental parallel to the existing 1880s the impacts of construction while limits and 23 percent complete. structure introducing capacity and reliability improvements. Net dredge volumes (cubic metres) as »» upgrading four pedestrian at 30 June 2008: crossings with the installation Stage 1 Cranbourne Stabling of automatic gates and audible and Station Upgrade Project »» Port Melbourne Channel – warning signals 2.22 million This $37.1 million project involves »» associated signalling and overhead the design and construction of »» South Channel – 2.56 million power works. new train stabling to support »» Entrance – 277,000 improved services, the upgrading of Connex started early works in January Cranbourne Railway Station to meet »» Yarra River – 245,000 2008. John Holland Pty Ltd won the Disability Discrimination Act 1992 »» Total: Almost 5.3 million main works contract and commenced (DDA) compliance, and 400 new car cubic metres. work in August 2008 for completion in parking spaces. The contract for main early 2010. The project team and the works was won by Thiess Pty Ltd Rail infrastructure Yarra and Darebin Councils have been in December 2007. Work started in in close consultation to facilitate the January 2008 and will be completed In May 2008, the Federal and State planning approvals required for the during 2009. Governments announced the $500 project. million North-East Rail Revitalisation Stage 2 Westall Rail Upgrade Project. The project will remove the Craigieburn Rail Project rail line from the Wodonga CBD Funding was allocated in the 2008-09 and convert 200 kilometres of track The $115 million Craigieburn Rail budget for the $153 million Westall from broad to standard gauge. Project was completed in 2007-08 Rail upgrade. This project involves This will support the delivery of an and extended electrified metropolitan construction of 2.7 kilometres of upgraded passenger and rail freight train services from Broadmeadows to third track, a third platform, additional link between Melbourne and Craigieburn. stabling, improvements to passenger and improve passenger rail services amenities, safety and DDA access, Work included: between Melbourne and Albury- additional drivers’ facilities, and Wodonga. Works will commence later »» upgrading Craigieburn to a more car parking. Works will take this year and be completed in 2010. premium station that is fully staffed place between 2009 and 2011. This Further details of this project are from first train to last upgrade will improve train reliability included in Outcome Five. for a growing number of passengers. »» a new station at Roxburgh Park »» track and civil works »» extension and upgrading of the existing Craigieburn Station car park »» the installation of an overhead power system and a new signalling system.

41 42 Department of Transport Annual Report 2007-08 Laverton Rail Upgrade Project The project has a staged approach In addition there has been a with the first stage of TMS expected $16 million upgrade of seven Hitachi Funding was allocated in the 2008- to be delivered by December 2008. vehicles. It was originally intended 09 budget for the $92.6 million to retire the remaining Hitachi fleet Laverton Rail upgrade, which will Work is also under way to improve after the Commonwealth Games in feature a third track, third platform real time monitoring of train March 2006, but patronage growth and additional station facilities. movements by extending telemetry has necessitated their retention. The These works will enable “short infrastructure. trains are now being refurbished and starter” trains to begin and finish an additional Hitachi train has been Suburban rolling stock their journeys at Laverton, improving secured to maintain fleet numbers reliability for the Werribee line and The present train fleet is made up during the refurbishment program. V/Line Geelong services. Works are of 165.5 trains (331 units). For the expected to commence in 2009 and proposed November 2008 timetable, In December 2007, Alstom was be completed in 2011. Connex will have 148 trains available awarded an order to make and supply 18 new six carriage Xtrapolis trains Systems and signalling for the morning peak and 140 for the evening peak. Prior to the for the Melbourne metropolitan The State Government has committed commencement of this franchise in network. They will be delivered from to upgrading older train control and April 2004, the rail operators provided late 2009 and carry at least 14,500 management systems to deliver a 134 trains for the morning peak and passengers during the peak period, modern, reliable rail network. High 132 for the evening peak. The ability equivalent to more than six freeway quality systems are essential to to provide these additional trains lanes of capacity. operating a safe, reliable and efficient for passenger services has come network and allowing for future New and refurbished rolling stock from a significant improvement in – V/Line and CountryLink expansion of the network. maintenance practices driven by investment by Connex and the state. New rolling stock for the regional Upgrading the existing signalling fleet is being acquired to help meet system in Melbourne’s inner west Steps being undertaken by Connex to increasing patronage and operational to a computer-based interlocking further improve the performance and demands. This program includes signalling system will improve the availability of its fleet include: the purchase of two new VLocity reliability and operability of regional trains, the acquisition of Intermediate and interstate rail lines. It will also »» increased maintenance workshop utilisation and efficiency carriages to increase capacity on the improve operating efficiency between VLocity fleet and the transfer of two North Melbourne Station and the »» additional staff employed to support Sprinter trains to operation on the western edge of the central business higher train availability Stony Point line. district. Works started in August 2007 »» introduction of an additional shift and include track works (renewing old The two VLocity cars were delivered at Epping depot points and crossings), construction in December 2007. The first of a new Motorail facility to load »» delivery of improvement works intermediate carriage was accepted cars onto trains, and the extension at depots for testing in June 2008 with the of Southern Cross Station’s platform remaining vehicles to be progressively »» targeted programs aimed at two. Works will be completed by introduced into service over 2008-09 improving vehicle reliability October 2008. and 2009-10. reducing reactive maintenance. The Rail Operations Management A $13.2 million refurbishment Connex has also commenced a System Project will deliver planning program is under way to deliver project to improve the reliability of and day-of-operation management enhanced amenity for those services four trains’ “chopper units” tools that allow fleet and staff to where VLocity trains do not operate. which suffer from poor performance be planned based on timetable By June 2008, six Sprinter cars and as a result of modifications made to requirements. The project will deliver two H-car sets had been refurbished, their traction motors in the1990s. This the following systems: with the remaining vehicles to be project is due to be completed refurbished by June 2010. »» Timetable Management by October 2008. System (TMS) »» Fleet Management System (FMS) »» Staff Management System (SMS).

43 Victoria has an ownership interest in EastLink stations Craigieburn Stabling Project eight XPT cars within the CountryLink fleet and RailCorp is conducting $20 million was allocated to upgrade In September 2007, five train stabling a refurbishment of the entire accessibility, safety and amenity of sites costing $12.5 million were CountryLink fleet. As at 30 June, 2008, Dandenong, Kananook, Noble Park constructed and commissioned to two powered cars and three first-class and Heatherdale stations as part of provide train operational capacity and carriages had been refurbished. EastLink. The upgrade was completed flexibility at Craigieburn station. in November 2007 following the Tram improvements completion and commissioning of Stations and modal interchanges improved lighting, CCTV cameras, car $20 million has been allocated to The state is funding the Yarra parks and DDA compliance works. Trams lease of five low-floor Alstom upgrade the stations and modal Citadis trams originally built for the Park and Ride interchanges at Coburg, Frankston, town of Mulhouse in France. With Broadmeadows and Preston. A design the Mulhouse network expansion The 2006 budget allocated $7 million contract was awarded in October delayed, Melbourne has been given to provide around 800 additional car 2007 for: parks and improved lighting and CCTV the opportunity of a temporary lease. »» DDA compliance works Delivery has been progressive, with coverage at eleven metropolitan and the first tram arriving in February regional stations. 1,270 additional car »» enhanced lighting and 2008 and the final by the end of 2008. parks were created during 2007-08 CCTV cameras at the following sites. Each tram will require modifications »» improved station facilities, for operation in Melbourne, such as »» Beaconsfield (approximately amenities and signage upgraded air conditioning systems 120 car parks) and installation of Melbourne ticketing »» weather protection. system and wheel profiles. »» Cranbourne (approximately 90 car parks) Works at Frankston station are North Melbourne Station scheduled for completion by the end »» Pakenham (approximately of 2009 with the remaining stations This $38.6 million station upgrade 55 car parks) scheduled for completion in 2011. will add a concourse spanning all »» Wattle Glen (approximately Premium Station Project six platforms and a new commuter 60 car parks) entrance. Construction has The May 2007 budget carried a commenced with the completion of »» Ballan (approximately program to upgrade a further heritage restoration works and the 125 car parks) seven stations to premium status. concourse foundations, enabling »» Drouin (approximately This requires each station to be works and services relocation. The 160 car parks) staffed from first to last train and project is scheduled for completion improvements to security and in 2010. »» Gisborne (approximately customer amenity. During 2007-08, 135 car parks) Darling, Watsonia, Mentone and »» Lara (approximately Upfield stations were upgraded. 125 car parks) Design work on Bell and Burnley stations was completed and »» Wallan (approximately works due to start in late 2008 150 car parks) for completion in early 2009. The »» Garfield (approximately final station will be designed and 80 car parks) constructed by December 2010. »» Bacchus Marsh (approximately 170 car parks).

44 Department of Transport Annual Report 2007-08 Graffiti removal »» progressing the Monash-CityLink- Over 150,000 people attended the West Gate Freeway upgrade, Calder EastLink Community Open Day on The Department of Transport, Freeway upgrade, Geelong Ring EastLink on 15 June 2008, which along with Connex and Community Road and Deer Park Bypass featured cycling and running events, Corrections Victoria, has developed vintage car parades and a community »» completing 14 and progressing a cleaning program involving people festival and celebration. The ‘share 11 outer metropolitan road projects on community-based work orders. the road’ tunnel walkthrough element This program has resulted in the »» completing 30 and progressing was jointly funded by government to removal of graffiti and posters from seven regional road projects promote Eastlink’s outstanding safety a number of public transport assets, features. including the Flinders Street Station »» maintaining 53,163 lane kilometres viaduct. It is being expanded across of road and 3,407 bridges, achieving A tunnel naming competition for the the metropolitan network to clean up targets of 91 percent of travel on EastLink tunnels attracted more rail assets and deter vandals. smooth roads in metropolitan than 2,000 entries with Melba and Melbourne and 93 percent in Mullum Mullum selected as the In April 2008, an anti-access regional Victoria. winning names. Victoria’s biggest and mechanism to protect the rail bridge busiest interchange at the Monash EastLink at Sherbourne Road, Montmerency, Freeway was named after Tom Wills was trialled as a joint venture Australia’s largest urban road project, by the Minister for Roads and Ports between the Department of Transport, Eastlink, was opened to traffic five in recognition of one of the founding Connex and VicTrack to address months ahead of schedule on 29 June fathers of Australian Rules Football. community concerns surrounding 2008. EastLink was the state’s most The Bend Road heritage site and ongoing graffiti at the site, which is significant Public Private Partnership surrounding wetlands was named the main gateway to the suburb. in 2007-08, with construction costs of in consultation with the Wurundjeri Road infrastructure $2.5 billion funded by concessionaire Council in recognition of its aboriginal ConnectEast. significance. Growing Victoria Together is a vision to grow and link all of Victoria, The project will significantly improve Other key milestones included the connecting people, communities travel through Melbourne’s east and Minister planting the one millionth and businesses. VicRoads delivers south east and deliver a $15 billion plant on the EastLink project and the this vision through road and bridge boost for the local economy. The opening of the Dandenong Bypass by improvements to enhance the number of jobs located within a 30 the Premier. efficiency and accessibility of the minute drive of the City of Greater arterial road network. Dandenong alone has doubled with the opening of Eastlink and it is Full details of VicRoads achievements expected that an additional 6,500 are outlined in VicRoads 2007-08 jobs will exist in Victoria as a result annual report which is available at of Eastlink’s operation. EastLink www.vicroads.vic.gov.au adds new capacity to our road network, slashing travel times Highlights include: between Mitcham and the Frankston »» completing the $242 million Freeway on EastLink to 24 minutes Pakenham Bypass in December and reducing congestion on 2007 surrounding arterial roads. A shared use pathway, including 35 kilometres »» completing the $40.5 million of new pathway, along the EastLink Goulburn Valley Highway Arcadia route from Mitcham to Carrum duplication in June 2008 Downs, opened in June 2008.

45 I first heard about the government’s It is also interesting because so many plans to deepen the shipping channels other people in government, working into Port Phillip Bay several years ago, across many different agencies, have when I was working in the Department been involved. of Treasury and Finance. I was intrigued and when a job came up working on the I started at the department in 2005 project, I went for it. when the project was in the Supplementary Environmental Effects When the project is finished, Statement stage. A highlight for ships with a draft of 14 metres will be me was when I was able to board able to enter the Port of Melbourne the Queen of the Netherlands later at all tides. This will improve the that year during the trial dredging. efficiency of sea freight to and from Watching such a massive dredge in the Port of Melbourne. operation was amazing and gave me a much better understanding The project is unique and complex. of how dredging works. There has been an incredible amount of scientific research into this project One of the highlights of the project was and the biggest challenge was to the trial dredge because we were able ensure that the environment is not at to show that the new technology could risk. The complexity of the science, be used to dredge at the heads, the combined with the environmental, entry into Port Phillip Bay. When the economic and the highly technical project was approved and work started aspects have made it a challenging but in early 2008, there was a great sense rewarding project to work on. of achievement for everyone involved in getting the project to that stage.

The channel deepening project Elena attracted strong media interest, which put everyone working on Grimshaw the project under pressure. Senior Policy Officer, I fell in love with public policy Channel Deepening Project while studying. I have a degree in Agricultural and Resource Economics with honours from La Trobe University and I also have a Master of Environmental Science from Monash University. I have been working with State and Federal Government for 10 years. It’s very satisfying working on projects like channel deepening that deliver benefits back to the community.

Dredging of Port Phillip Bay and the Yarra River is being done by a number of vessels, including the Queen of the Netherlands, and is scheduled to be completed by the summer of 2009-10.

46 Department of Transport Annual Report 2007-08 People Profile47 48 Department of Transport Annual Report 2007-08 Outcome Three Access and mobility

349 Access and mobility

Providing transport services and Public transport infrastructure that are accessible performance and efficient is essential to Metropolitan train services A total of 99 percent of scheduled connect people with employment metropolitan train services ran in 2007-08 compared to 98.9 percent in opportunities, healthcare services, 2006-07. Punctuality for metropolitan and recreational facilities. DOT train services for 2007-08 was 92.3 percent compared with 92.2 percent is working to ensure Victoria’s for 2006-07. transport system connects Tram services communities through a range Service delivery by Yarra Trams during 2007-08 has been excellent, of initiatives to improve safety, with 99.7 percent scheduled services running. When measured as an access, performance and average across the journey, tram reliability, minimise travel punctuality was at 81.8 percent for 2007-08 with an average ‘at delays and disruptions, improve destination’ result of 71.7 percent. These figures are lower than those liveability and encourage recorded for the 2006-07 financial year, with increased road congestion sustainable travel choices. and patronage impacting tram punctuality. Despite this, tram service performance has improved since the franchising of tram services in 1999. Metropolitan bus services Metropolitan bus services have maintained levels of performance consistent with previous years. On average, 95 percent of services were on time and 99.9 percent of services ran.

50 Department of Transport Annual Report 2007-08 Regional train and coach services Public transport patronage 70 percent in the nine years from 1998-99 to 2007-08. Tram patronage V/Line train service punctuality for 2007-08 saw patronage on grew by 3.4 million trips in 2007-08, 2007-08 was 86.2 percent – consistent Melbourne’s public transport to a total of 158.3 million trips and with the 86.1 percent recorded for network continue to grow, with CBD there were 6.3 million more trips 2006-07. This follows a fall in the employment growth, significant on buses in 2007-08, with a total of level of disruptions associated with population growth and higher petrol 91.3 million bus trips. Sunday bus Regional Fast Rail and Southern prices all major contributors to a patronage in particular experienced Cross Station project works. A total network-wide increase of 7.7 percent. extraordinary growth of 44 percent in of 98.7 percent of V/Line services ran Passenger trips on metropolitan 2007-08, due in large part to the roll during 2007-08, compared with 98.8 trains reached 201.2 million in 2007- out of metropolitan bus improvements percent for 2006-07. 08, a record high and an increase including new SmartBus services Compensating passengers of 12.7 percent on 2006-07. This as part of Meeting Our Transport represents an increase of over Challenges. Eligible passengers on metropolitan train and tram services can be compensated when system-wide reliability falls below 98 percent, train punctuality falls below 92 percent Growth in Australian metropolitan public transport patronage or tram punctuality falls below 80 percent. Metropolitan tram services 25% 22.3% exceeded the specified minimum 19.3% performance standards for all months 20% in 2007-08 except November 2007 and March 2008. Metropolitan train 15% services fell below performance 9.5% 10% standards in July and December 2007 6.3% 6.6% 6.6% 4.0% and April 2008. V/Line was required to 5% compensate passengers throughout 2007-08 as punctuality fell below the 0% 92 percent threshold. PERCENT CHANGE IN PATRONAGE -5% METRO Operational performance CITY RAIL (NSW) TRANS PERTH MELB TRAM TRANS PERTH TRAINSCITY TRAIN (QR) MELB TRAIN Melbourne’s train network continues to experience significant growth. The network now carries more PAST TWO FINANCIAL YEARS passengers than ever before surpassing 1949-50, the previous high point. As shown in the following table, the level of growth experienced on the Melbourne metropolitan train Estimated growth in metropolitan patronage from 2006-07 to 2007-08 network is leading Australia. Estimated patronage Estimated patronage growth in 2007-08 (millions of from 2006-07 to 2007-08 boardings) Metropolitan train 201.2 12.7% Tram 158.3 2.2% Metropolitan bus 91.3 7.4% All metropolitan public transport 450.8 7.7%

51 Customer satisfaction Regular users, who travel more Satisfaction with regional public than one day per week, and peak transport has increased. Overall The Director of Public Transport users continue to be the least regional satisfaction remains in the commissions monthly customer satisfied segments of train travellers. range ‘somewhat satisfied’ to ‘very satisfaction surveys to measure Customer satisfaction with service satisfied’. whether operators are providing the reliability and comfort on trains quality of service customers expect. continue to be poor-performing areas Public transport ticketing A sample is randomly selected from of high importance to customers. system availability electronic telephone directories in Both these factors are strongly Melbourne’s automated ticketing areas where train, tram, bus and influenced by crowding during peak system again performed well in 2007- coach services operate. Metropolitan periods. 08, with the performance of railway taxis were added to the regular station ticket vending machines monthly surveys in June 2005. A new train timetable in April exceeding contractual targets. The 2008 added extra services and the performance of vending on trams Interviewees are asked to indicate reliability of the system has been improved significantly during the their usual public transport usage steadily improving since then. A major year, but continues to be lower than and state their level of satisfaction timetable change due in November that of ticketing equipment used at with specific aspects of public 2008 will include extra services and a railway stations. The government is transport, as well as the service new operating plan to greatly improve continuing to work with the ticketing overall. These responses are given train reliability. The introduction of system provider, OneLink, and Yarra a score of between zero and 100 new capacity and improvements in Trams to improve the reliability of according to the following scale: train reliability both directly address equipment on board trams. Totally satisfied 100 the key drivers of dissatisfaction for Very satisfied 80 train customers. For tram and bus, Somewhat satisfied 60 improved travel time and frequency Somewhat dissatisfied 40 of services through programs such Very dissatisfied 20 as Think Tram and the SmartBus Totally dissatisfied 0 expansion, will help address declining satisfaction. Customer satisfaction with metropolitan trains, buses and taxis has continued on a downwards trend. Satisfaction with trams was relatively Public transport customer satisfaction monitor results consistent from 2003-04 to 2006-07 2006-07 to 2007-08 but declined from 2006-07 to 2007-08. Mode 2006-07 2007-08 Survey question Overall customer satisfaction for Metropolitan 67.7 66.9 Overall, are you satisfied or dissatisfied metropolitan public transport buses with the service on your bus route? recorded a decline from 2006-07 to 2007-08. Overall, metropolitan Metropolitan 62.5 59.4 Overall, are you satisfied or dissatisfied customers averaged at the ‘somewhat trains with the train service on your line? satisfied’ level. Although train, tram Metropolitan 70.5 67.4 Overall, are you satisfied or dissatisfied and bus have all recorded declines in trams with the tram service on your line? this period, satisfaction with trains is lower than the other modes. V/Line trains 75.5 76.7 Overall, are you satisfied or dissatisfied with the V/Line train service on your last trip? V/Line 77.5 80.3 Overall, are you satisfied or dissatisfied coaches with the V/Line coach service on your last trip? Taxis 62.0 58.2 Overall, are you satisfied or dissatisfied with Melbourne’s taxi services?

52 Department of Transport Annual Report 2007-08 Improving reliability and the equivalent of almost three six-car with CBD employers to encourage reducing overcrowding train loads of commuters. more flexible work and travel options. on Melbourne’s public North Melbourne shuttle bus Comeng seat trial transport system Connex is working on early design Route 401 between North Melbourne changes to a six carriage Comeng Patronage growth has led to Railway Station and the University train to remove some seats to better significant crowding on trains in the of Melbourne began on 3 March accommodate wheelchairs, and bikes. morning and evening peak periods, 2008, providing a frequent, direct The removal of seats will improve placing pressure on the rail system. and efficient public transport option passenger flow in the train carriage The government has introduced for people travelling from North and reduce dwell times at stations. the following measures to manage Melbourne Station to the University Together with additional hand crowding and help improve reliability: of Melbourne and Royal Melbourne straps throughout the carriage, the Hospital. increased open area will encourage Early Bird ticket This service has helped to reduce passengers to move away from The government has committed crowding on City Loop services during doorways. The hand straps will make $12 million over two years for the peak times and is the only bus route the journey more comfortable for Early Bird initiative which aims to in Victoria to run every three minutes passengers standing in peak periods. reduce crowding in the morning peak during the morning and evening New services by providing free travel to passengers peaks, with the capacity to transfer who exit the train system by 7am. up to 1,000 passengers an hour. More than 1,000 services per week Following a trial on the Frankston and Over 2,500 passengers a day use this have been added across the network Sydenham lines the Early Bird ticket bus route on a regular basis, which since 1999, an increase of 8.3 percent, was introduced across all 15 lines equates to more than three six-car which has helped ease crowding. on the metropolitan train network train loads of commuters. The most recent service boosts were on 31 March 2008. provided in new timetables introduced Flex in the City on 30 September 2007 and 27 April At the beginning of May, 2,700 2008, which added an extra 294 passengers per day were travelling Flex in the City aims to alleviate congestion on the metropolitan weekly services and 10 extended to Melbourne using the Early Bird services. The April timetable also ticket. This includes an additional transport system by encouraging CBD workers to travel to and from provided six carriage trains on all 2,000 passengers a day travelling in lines within the weekday morning and the 6am to 7am timeslot, which is work outside of peak periods. The government is working collaboratively inter-peak periods, which follows the introduction of six carriage trains on weekend services. Further timetable improvements will be introduced in Number of weekly train services November 2008. Tram improvements

28 AUGUST 1999, UNDER 11,346 GOVERNMENT CONTROL Melbourne’s tram network is experiencing pressure due to growth 17 APRIL 2004, in patronage. A number of actions 11,981 AND CONNEX FRANCHISES END are being taken to relieve these pressures. Key achievements in 2007- 15 OCTOBER 2006, INTRODUCTION 08 included: 12,083 OF RFR AND LATE NIGHT SERVICES »» extension of the City Circle hours of operation, with the service now 30 SEPTEMBER 2007, OPENING 12,282 OF CRAIGIEBURN LINE SERVICES operating until 9pm on Thursday, Friday and Saturday nights 27 APRIL 2008, IMPROVED PM PEAK 95 ADDITIONAL SERVICES ~ 12,377 »» leasing of five large-capacity trams AND STONY POINT SERVICE from France until 2011, with the first entering service on 12 June 11,000 11,250 11,500 11,750 12,000 12,250 12,500 12,750 2008.

NUMBER OF WEEKLY TRAIN SERVICES

53 »» the retention in service of the VicRoads Think Tram Program Metropolitan bus services remaining Z1/2 trams and recommissioning the two that had In addition to installing the platform On 23 June 2008, new 10-year been withdrawn from service tram stops discussed previously, contracts were signed with 29 VicRoads worked with the Department individual metropolitan bus »» the construction of platform stops of Transport ,Yarra Trams and local operators to take effect on 1 July to comply with DDA requirements councils to complete a number of 2008. Negotiations were initially and improve efficiency at busy other initiatives to improve tram travel conducted with the BAV on behalf of trams stops, with a further seven times, reliability and safety, including: all metropolitan bus operators. sites completed in 2007-08, The new contracts feature including three locations on Bourke »» providing tram priority and comprehensive changes, including: Street to provide platform stops separation from other road along its entire length users on multiple tram routes by »» more accountable, transparent adjusting 60 sets of traffic signals service »» a major new platform stop at the and installing 6.8 kilometres of Arts Centre, including provision of a raised dividing strips adjacent to »» operator bonuses for exceeding 60 metre section of triple track and tram tracks agreed performance targets a tram turning lane at Southbank »» sanctions for poor or failing Boulevard to improve tram »» improving signage and installing performance operations and reduce delays red pavement at 34 median openings and eight roundabouts on »» increased flexibility for quick »» a trial to assess the feasibility of the tram network to improve safety and efficient introduction of mounting closed circuit television and reduce delays to trams new services. cameras (CCTV) on trams in order »» installing electronic overhead tram to record instances of cars passing Bus service reviews stationary trams at stops, to signs and flashing road markers for improve enforcement of road rules two part-time tram lane locations in Bus services are being reviewed for cars when driving with trams Brunswick and Fitzroy. The signage across metropolitan Melbourne and increase safety for passengers reminds motorists to keep off the as part of Meeting Our Transport tram tracks during peak periods. Challenges (MOTC) with a view to: »» extension of the route 95 Bourke Street shuttle to Latrobe/Spencer »» installing CCTV at 10 intersections »» ensuring local bus services are well Street to improve the connectivity linked to the Yarra Trams Operation connected to growing facilities like with Southern Cross station Centre via VicRoads Traffic community centres and shopping following the construction of Management Centre, to allow centres platform stops at Spencer Street early detection of and response to tram incidents »» proposing a bus service network »» development work continuing on that will increase patronage a major tram acquisition program »» undertaking a multimedia Obey the Yellow campaign during February to »» providing accessible transport for announced as part of Meeting our social inclusion Transport Challenges. April 2008 to educate motorists on their obligations in relation to tram »» reviewing route structures to lanes ensure geographic coverage »» producing a Driving with Trams »» reviewing individual bus timetables DVD to inform motorists of their with a view to increase modal obligations when driving near coordination at interchanges trams. The DVD was widely distributed to taxi drivers, »» documenting and assessing bus drivers, driving schools, adequacy of existing bus stops metropolitan high schools and »» identifying overcrowded routes that libraries. need more buses »» determining the need for new routes.

54 Department of Transport Annual Report 2007-08 Over a four-year period there will be an extension of operating hours to »» a 50 percent rise patronage on 16 metropolitan bus service reviews 9pm seven days a week. In addition, Route 784 (Mornington-Osborne) across Melbourne. The following were new bus routes were introduced, »» a 32 percent rise in patronage on completed in 2007-08: frequencies were upgraded and some Route 564 (Bundoora RMIT-Epping existing routes were either extended »» Banyule/Nillumbik – completed Plaza & Northern Hospital) or rerouted. Over 4,000 extra weekly May 2008 trips have been introduced – over »» a 25 percent growth on Route 408 »» Frankston/Mornington Peninsula – 2,400 on weekdays, 500 on Saturdays (St Albans-Highpoint City). completed December 2007 and 1,100 on Sundays. SmartBus »» Hobsons Bay/Maribyrnong/Moonee Outside of MOTC there have been SmartBus is a high frequency and Valley – completed September 2007 other significant metropolitan bus reliable premium bus service with and released publicly June 2008 improvements, including: extended operating hours on major »» Hume/Moreland – completed »» upgrade of the peak operating arterial roads, connections to activity January 2008 and released publicly frequencies of two bus routes centres and interchanging with rail April 2008 servicing La Trobe University, networks. Its traffic light priority »» Whittlesea – completed May 2008. including improvements to means it is fast and reliable and its train connectivity at Heidelberg, up-to-the-minute digital displays Service reviews were commenced in Reservoir and Macleod Railway give useful service and timetable January 2008 for: Stations and an extended late information. evening service on one route »» Cardinia/Casey Over 170 DDA (Disability »» upgrade of the Sunbury bus »» Casey/Greater Dandenong Discrimination Act 1992) compliant network comprising six bus routes, SmartBus bus stops have been built »» Hobsons Bay/Wyndham to provide extra weekday trips. for SmartBus Route 901, as have 59 real-time passenger information »» Manningham/Monash/Whitehorse. These improvements have helped displays and 18 ultra low floor to boost bus patronage across buses equipped with the SmartBus Metropolitan bus service Melbourne, with 44 percent growth in Technology. improvements the number of passengers travelling As part of MOTC, $165 million over on Sundays. Consultation and development work, four years (part of the government’s including design and on-road A snapshot of routes upgraded since commitment of $646 million bus priority treatments, has been June 2007 shows: over 10 years) was allocated to undertaken for the Green Orbital improve metropolitan bus services. »» a 58 percent rise in patronage Stage 2 (Nunawading to Airport West) During 2007-08, 51 initiatives were on the Route 901 SmartBus SmartBus route. introduced on 59 routes. The majority (Ringwood-Frankston) of these improvements involved Since trials began on the selected routes in Melbourne’s east in August 2002, patronage has grown by over 50 Average daily passenger trips by day type on Metropolitan bus routes percent with high levels of customer satisfaction. SmartBus Route 901 along Stud Road and Dandenong- Financial Year Weekday Saturday Sunday Frankston Road between Frankston and Ringwood commenced operation 2005 – 2006 251,191 81,038 26,773 in March 2008, with a 30 percent improvement in patronage in its first 2006 – 2007 270,221 90,925 36,767 full month of operation. Construction of on-road bus priority treatments 2007 – 2008 285,930 104,625 53,078 for Stud Road and the Red Orbital SmartBus routes continued, with Growth from 06-07 to 07-08 6% 15% 44% numerous treatments completed and operational.

55 VicRoads Bus Priority Program Public transport for Taxi service improvements VicRoads Bus Priority Program special events Accreditation aims to improve on-road conditions for key bus routes complementing Free travel was provided on The government’s commitment to the SmartBus program discussed metropolitan trains, trams and buses, improving Victoria’s taxi services previously. These works include and V/Line services, on New Year’s saw it launch two new accreditation improved traffic signal phases for bus Eve. Metropolitan trains and trams schemes in 2007-08. Driver priority and providing or reallocating operated all night and there were accreditation, introduced in July 2007, road space for buses. extended NightRider bus services. sets clear guidelines about who can The provision of free public transport drive, what is expected of them and VicRoads completed bus priority was a road safety initiative to reduce sanctions for non-compliance. The treatments at 20 sites in 2007-08. serious injury and death caused by new laws focus on improving the It also worked with the Department drink driving, with revellers urged customer experience and exclude of Transport and the City of to leave their car at home. Around people with a serious criminal history Melbourne to implement new bus 160,000 travellers made use of the from the industry. lanes on Lonsdale Street (south side) free public transport option. and Queen Street (east side) in the The taxi industry-wide accreditation CBD. Red pavement was installed Free travel was also provided on scheme introduced on 31 December on the bus lanes in Johnston Street, Christmas Day on all metropolitan 2007 is the most significant policy Collingwood by VicRoads and the train, tram and bus networks, on and legislation reform to the taxi Department of Transport to improve V/Line services and on major bus industry in 20 years. It increases road user awareness of the bus lanes. services travelling to and from professionalism and by Melbourne. extending the chain of responsibility to all industry participants. Until now, Metropolitan tram and train New crowd management Network Service Providers (NSP) were franchising project arrangements were put into place unregulated but from 31 December for the 2007 Melbourne Cup Carnival 2009 they must be accredited by The metropolitan tram and train at Flemington Station in partnership DOT. Minimum business and service franchising project (MR3) designs, with the VRC, Connex and Victoria standards for licence holders and procures and transitions new Police. arrangements for the future operation operators will result in better services of Melbourne’s tram and train A general increase in the number to passengers. networks. On 21 August 2007, the of events in Melbourne was reflected Steps to improve Victorian Government put tram and in the launch of the Royal Melbourne taxi driver standards train operations out to competitive Showgrounds as a new multipurpose tender. event venue, in the increased number The Course in Taxi Driving has been of sporting events being held in the upgraded and from 1 July 2008 2007-08 achievements include: city, in the return of the St Kilda all drivers will require stronger »» an extension of current Franchise Festival and in road-based events literacy skills and must complete Agreements with Connex and such as fun runs, bicycle events, a comprehensive knowledge of Yarra Trams for 12 months to demonstrations and rallies. Melbourne test in addition to 30 November 2009 existing accreditation requirements. Additional transport services were Applicants will also receive conflict »» a comprehensive review of existing provided for a range of special events, resolution training to handle and Franchise Agreements including the Australian Open, prevent verbal and physical assault. the Grand Prix, the Spring Racing »» the design of the legal and Carnival, St Kilda Festival and a commercial framework to range of other sporting and implement new arrangements entertainment events. »» an extensive market sounding activities, including a registration Additional transport services were of interest process also provided for the cruise shipping season, including the inaugural visit »» a call for Expressions of Interest to Melbourne of the Queen Victoria. to operate the train and tram networks as part of a two stage tender process concluding 30 November 2009.

56 Department of Transport Annual Report 2007-08 57 VTD is also developing stronger Fares and ticketing »» Bus fares in more than 30 regional communication channels including cities are being aligned with a Taxi Drivers Advisory Group for taxi Revenue protection metropolitan fares, providing two drivers to provide regular feedback on hour, daily and weekly tickets. As Fare evasion costs the community government policies and initiatives. at 30 June 2008, the new ticket $35-40 million in lost revenue each arrangements had been introduced year. A mix of enforcement, education Greater focus on compliance in Benalla, Wangaratta, / and ticketing has helped to reduce , Rochester, Hamilton, The VTD has strengthened fare evasion on Melbourne’s public Seymour, Wallan, Kilmore, enforcement of , including transport system to 7.8 percent over Shepparton, Mooroopna and compliance with the Taxi Industry the past year, the lowest result since Portland. Accreditation scheme, with provision fare evasion surveys began. for 36 new Transport Safety Officers. »» Work was completed in 2007-08 to Public transport ticketing 75 percent of the 9,000 taxis allow the new fare arrangements audited by VTD during 2007-08 »» The new 5xWeekend Daily ticket to be introduced on 1 July 2008 were compliant. was introduced in April 2008 in Korumburra, Cobram, Lakes for travel across Melbourne on Entrance, Sale, Yarrawonga, Colac, Taxi fare increases Saturdays and Sundays for $2.90 Horsham, , Wodonga and Taxi fares increased by 1.1 percent per day. The ticket represents a . in September 2007, in line with the 70 percent discount on Saturday »» The profile of public transport was Essential Services Commission travel costs. significantly raised in September (ESC) recommendation. The annual »» The 10xEarly Bird ticket was 2007 after all Victorian Seniors (one Multi Purpose Taxi Program cap also extended to all electrified train in five Victorians) received public increased 1.1 percent to $1,045 and services in April 2008 and more transport information and two free will automatically increase in line with than 40,000 trips per week off-peak travel vouchers. future taxi fare increases to ensure are now made before 7am. fairness to program members. »» The Doncaster Park and Ride »» The 5xSeniors Daily was became Victoria’s first prepay bus To offset the substantial rise in fuel launched in April 2008. It can be stop in January 2008, meaning costs particularly LPG, an interim purchased in bulk and is estimated that no tickets are sold on board. taxi fare increase of 4.2 percent to have reduced individual ticket Every four tickets purchased on was issued in April 2008, in line sales by around 125,000 per annum. board a bus delays the service by with ESC recommendations. approximately one minute so this initiative reduces the time a bus dwells at a bus stop by up to three hours a day. Victoria’s first prepay Metlink fare evasion survey results bus route started in March 2008 on the new 401 Route between North Melbourne Railway Station and Year Train Tram Bus Network-wide Melbourne University. 2005–2006 10.7% 14.2% 13.0% 12.5% 2006–2007 11.5% 10.1% 8.1% 10.3% 2007–2008 6.3% 9.6% 7.3% 7.8%

NB: Unprecedented patronage growth and subsequent crowding on train services made collecting survey information difficult, during 2007-08 financial year. Consequently, the train figure above is based on the results of a single survey conducted in May 2008. Figures for all modes between 2005-06 and 2006-07, and figures for tram and bus for 2007-08, are based on the results of two surveys. Metlink has reviewed the survey process to allow for improved data collection.

58 Department of Transport Annual Report 2007-08 Metlink »» The Metlink website continued to Congestion grow by approximately 40 percent Improvements Program Metlink is a private, not-for-profit over the year with between eight organisation which has a contract and 10 million hits a month in the VicRoads is implementing the with the State Government to provide first half of 2008. Traffic figures Victorian Government’s $30 million services across the public transport over the past year put it in the top three year Congestion Improvements system including marketing and five travel websites in Australia, Program (2007-08 to 2009-10) and customer information. Metlink uses alongside Qantas, Virgin Blue, the $112.7 million Keeping Melbourne the Viclink brand for regional services. Jetstar and Tiger. The journey Moving, to treat routes and sites where delays are significant or increasing. »» The bus component of Metlink’s planner, which represents about a In 2007-08 the following works were signage and wayfinding project third of website activity, also grew completed: reached practical completion at over the year by around 70 to 80 30 June 2008, with new signage percent. »» installation of intersection traffic and customer information at signals at High Street/Warner approximately 19,000 bus stops and New ticketing solution Street, Ashburton interchanges around metropolitan Work continued throughout 2007-08 »» installation of intersection traffic Melbourne. The $28 million on the new ticketing solution, referred signals at Main Road/Cecil Street/ multi-modal signage project was to as . Diamond Street, Eltham delivered on time and under budget across all modes. Key achievements included: »» installation of intersection traffic signals at Karingal Drive/Weidlich »» A four-year mass media campaign »» completion without any disruption Road, Briar Hill promoting improvements and to passenger services of all initiatives for metropolitan buses undertrack works at metropolitan »» construction of an additional right was launched in July 2007. and regional train stations to allow turn lane on Yan Yean Road at The campaign is supported by for future installation of ticketing Diamond Creek Road intersection, direct marketing and local level devices Diamond Creek. advertising promoting route and »» all available trams and tram depots area-specific improvements. Work also commenced on converting were pre-wired and are ready to the roundabout to intersection »» Metlink launched a major new accept NTS devices traffic signals at Pascoe Vale Road/ brand campaign in September »» 94 percent of buses and coaches Somerton Road, Coolaroo. 2007, with the positioning were pre-wired, and 97 percent of statement “A Better Way”. The bus depots pre-wired, and are ready campaign positions public to accept NTS devices transport as a ‘better way’ economically, environmentally »» completion of civil works at regional and for convenience and is aimed train stations and at 99 percent of at building patronage on off-peak metropolitan stations services. »» completion of a comprehensive »» A state-wide brochure was system testing program on Geelong developed by Metlink to raise buses, yielding a 90 percent awareness of the customer success rate for scenarios tested. feedback process, including the role of the Public Transport Ombudsman

59 60People Department Profile of Transport Annual Report 2007-08 A group of us started to meet years ago after the brother of one of my friends got cancer. He said: “You should keep in touch but you never will.” After he died, we were determined not to lose touch. We call ourselves the Fools. There are eight couples and three singles and we are all between 60 and 70 years old. There is one couple from Bacchus Marsh but the rest of us live in . We are the Fools because someone will always forget which night we have arranged to meet up. We catch up every six weeks or so. Sometimes we meet in Ballarat but we often go into Melbourne to catch a show, such as Guys and Dolls or Menopause, or just to have a look around and watch people. We are all seniors. With a seniors’ card, getting the train into Melbourne is so reasonable. It is only about $10 or $11 if we travel off-peak. There is Joan no way you could drive your car into Melbourne and park for that sort of money. With the price of petrol these Lumpson days, it makes sense to travel by train, Senior, Ballarat especially with a seniors’ card. Once we saw a show and went to Southbank for an early meal. I love watching people and wondering where they have been. We then caught the 7pm train home again. Another time we put on our running shoes and caught a train into Melbourne and then caught a tram to Richmond and had a look at the shops there and on Chapel Street before coming home again. I don’t think we bought anything! Getting the train is much nicer because you don’t have to worry about car parking. Lots of groups from Ballarat take the train, like Probus, and I also see people of all ages on the train. It makes for a great day out. I live around the corner from the new station in Wendouree so it will be easier to catch the train when that opens. But for the moment, I drive into Ballarat to catch the train.

61 62 Department of Transport Annual Report 2007-08 Outcome Four Rural and regional development

463 Rural and regional development

DOT strives to boost prosperity Country taxi services review The government continues to improve in regional Victoria by improving country taxi services with measures road and transport services and including: »» $3.3 million for wheelchair infrastructure. Transport is vital accessible taxis to local economies and a range »» subsidies for wheelchair accessible taxis in Lakes Entrance, Orbost, of initiatives are underway to help Wodonga, Warragul, Heathcote, Castlemaine, Cobram, Rushworth, create vibrant and connected Wandong/Broadford/Kilmore, regional communities. Ensuring Winchelsea and . 22 applications have been that services are integrated, and approved since early 2007. infrastructure is safe and modern The soon-to-be implemented Country Taxi Operators Up-skilling Program is a key focus of the department. will help regional operators grow their businesses. Ballarat Stations Project The Ballarat Stations project forms part of a transit cities project. It is a response to significant parking pressures at Ballarat and increased demand for services, following the completion of Regional Fast Rail and the introduction of an expanded V/ Line rail timetable. The project includes construction of a new station and car park in Wendouree, four kilometres northwest of the city, and the upgrading of Ballarat Station’s bus interchange and car parking. Wendouree station will serve the 27,000 residents in Wendouree, Alfredton and Lake Wendouree who presently travel into Ballarat for a train. The contract for main works at Wendouree Station was awarded in May 2008, with works starting in July 2008. Works on the Ballarat Station car park commenced in June 2008 and work on the bus interchange will begin later in 2008.

64 Department of Transport Annual Report 2007-08 Wodonga Rail Bypass New and refurbished rolling stock V/Line timetable The Wodonga Rail Bypass (WRB) is – V/Line and CountryLink Changes were made to V/Line part of the $500 million North-East V/Line is experiencing record timetables to improve integration with Rail Revitalisation Project announced patronage growth, with passenger metropolitan services and coordinate on 30 May 2008. It will improve numbers passing the one million long-distance coach services and rail rail efficiency and revitalise the mark for the first time in April 2008. services. The main features were: commercial centre of one of Victoria’s The regional fleet needs new rolling »» on 30 September 2007: improved fastest growing regional cities. The stock to increase capacity and meet weekend and evening train interstate and broad gauge rail tracks operational demands. Meeting Our services on the North-Eastern will be removed from the central Transport Challenges allocated line (coinciding with the extension business district of Wodonga and $100 million to purchase two new of electrified train services to replaced with a five kilometre single VLocity trains to replace Sprinter Craigieburn), improved Geelong standard gauge bypass track west of sets being transferred to the Stony line services, additional coach the city. This will open up a large area Point line, along with 22 new services to Moama and Kyabram, of Wodonga CBD for redevelopment Intermediate carriages for use and improved coach schedules to and close 11 rail crossings, improving with the VLocity fleet. Barmah and Maryborough safety for road users. A new railway station will be built in West Wodonga. The two new VLocity cars were »» on 28 April 2008: increased delivered by December 2007. services to Kangaroo Flat Funding for the WRB includes Station, improved scheduling of $45 million AusLink from the Federal Construction of the first intermediate Bairnsdale services, additional Government. carriage was completed in June weekday coach services between 2008, with each of the carriages to be Work on the Wodonga Bypass will Portland and Warrnambool, and progressively introduced into service begin in late 2008. improved schedules for services to over 2008-09 and 2009-10. Burrumbeet, Ouyen and between Further information on the North- In addition, a $13.2 million program Ballarat and Geelong. East Rail Revitalisation Project is commenced to improve comfort levels included in Outcome Five. on those services where the VLocity Parkways fleet does not operate. By June 2008, six Sprinter cars and two H-car sets $5 million was allocated to establish had been refurbished to VLocity premium facilities at key regional standard, with the rest to be done stations by providing additional car by June 2010. parks, improved lighting and CCTV coverage. The following parkways RailCorp is embarking on a two-year were designed, constructed and refurbishment program of the entire opened to the public during 2007-08: CountryLink fleet, including Victoria’s eight XPT cars. Two powered cars and »» Bacchus Marsh (160 car parking three first-class carriages had been spaces) completed as at 30 June, 2008. »» Garfield (80 car parking spaces) V/Line Stations Program »» Wallan (215 car parking spaces) A number of major regional railway »» Gisborne (135 car parking spaces) stations have been significantly upgraded as part of a state-wide »» Ballan (125 car parking spaces) program including Echuca, Swan »» Lara (125 car parking spaces) Hill and Kangaroo Flat, which was reopened in April 2008 after closing »» Drouin (160 car parking spaces). due to a major fire.

65 Regional bus improvements »» new and upgraded links from Rural School Bus Safety Program Leongatha, Wonthaggi and Commitments under MOTC include The four-year $8 million Rural School Inverloch via Koo-Wee-Rup to Bus Safety Program has two years to additional coach and bus services Pakenham to build on the successful ‘Moving run and is on budget. This program Forward’ Regional Bus Service »» a new cross-corridor connection upgrades bus infrastructure at Rollout, which included 950 new trips between Koo-Wee-Rup and primary and secondary schools and a week to benefit around 70 regional Pakenham. roadside school bus stops in regional communities. Victoria to improve safety for students. These services improvements will Improvements delivered as part of the MOTC’s $90 million 10-year regional be rolled out by late 2009. program include road works, building bus improvement package includes Regional Interchange bus bays, new shelters and waiting $10.2 million in new funding in the Upgrade Program areas and safety fencing. To date first four years, with $3.9 million of across the state, the program has new money funded in 2007-08. A $5 million program was announced improved 37 school bus interchanges, to upgrade bus and rail interchange 11 school bus interchanges are in In 2007-08 20, regional bus infrastructure at regional locations progress and 250 bus stops have improvement projects were to improve passenger safety and been upgraded. completed, providing an extra 1,800 amenity. The program began in 2006- trips every week. Highlights include: 07 with upgrades targeted at 15 sites School bus service reviews »» upgraded services in the major across regional Victoria. In 2007-08 Improvements in service efficiency regional centres of Bendigo (April the major projects were completed has resulted in annual savings in 2008) and Ballarat (June 2008) at Kilmore East, Koo-Wee-Rup, Sale, the cost of rural school bus services Drouin, Wallan, Castlemaine and of $1.5 million over a full year and »» an innovative town service using Lara. The largest project, the bus a saving of $0.9 million for the year a bus and taxi combination in interchange works at Seymour, will be ending 30 June 2008. Lakes Entrance (January 2008) completed in August 2008. Launch of Viclink »» a new connection to V/Line long Bus infrastructure improvements haul coach services between DOT is working to build on the Foster and Wilson’s Promontory $14 million was allocated for 107 success of Metlink as a unifying brand (May 2008) grants and 48 bus infrastructure for public by projects across metropolitan creating a similar brand for regional »» new and improved services Melbourne and regional Victoria. Victoria called “Viclink”. and routes in Ararat, Colac and These projects have improved the Portland (February 2008). level of bus passenger amenities An $80,000 pilot program distributed Viclink branded public transport DOT progressed planning for future across the state. The projects were information throughout Wallan and bus initiatives in Shepparton, commenced during the 2007-08 year Kilmore during September 2007. Mooroopna, Murrindindi Shire, Sale, and the final two projects, Lonsdale The pack included information on Swan Hill and . St Bus interchange and Kangaroo Flat Station car park, are expected to be local buses, coaches, trains, taxis Additionally, $14.7 million was completed by October 2008. and community transport services allocated in the 2008-09 budget in the area. for increased services and better A further $3 million in funding has connections between communities been approved to roll the project out in South Gippsland and Bass Coast. to all households in regional Victoria, These improvements will include: beginning in 2008-09. »» major improvements to premium road coach services from V/Line marketing Leongatha and the Bass Coast V/Line won the Victorian 2007 (including Phillip Island) Marketing Excellence award for brand revitalisation, a major achievement »» more frequent services between for the business. townships on the South Gippsland and Bass Coast Highways

66 Department of Transport Annual Report 2007-08 Road infrastructure improvements Meeting our Transport Challenges recognised that maintaining and improving the regional arterial road network is vital for the prosperity of regional industries and liveability of regional communities. VicRoads contributed to regional development by achieving the following in 2007-08: »» completing the $40.5 million Goulburn Valley Highway Arcadia duplication in June 2008 »» completing a further 30 regional road development projects including the Midland Highway widening at Mooroopna, Bena Bypass and stage two of the Bendigo Inner Box widening »» progressing the Calder Freeway upgrade, Geelong Ring Road and a further seven regional road development projects »» completing 133 and progressing 16 regional road safety infrastructure improvement projects. Details of other achievements which have boosted transport in regional Victoria are included in Outcomes One, Two, Three and Five.

67 Felicity Hunter Regional Officer, Barwon South Western Region

68People Department Profile of Transport Annual Report 2007-08 I am directly responsible for managing I love and have used public transport public transport service contracts all over the world. I have always had including 252 school bus contracts in a love of cities and the country and the Barwon South Western Region. how they work and so it was a natural The school buses transport 10,700 progression to be working at the students to and from school and cover Department of Transport. a total of 26,000 kilometres every school day. I work closely with two staff in the Barwon South Western Regional Office I work closely with the school and, as a team, we manage all the principals who coordinate the public transport service contracts and students. I also spend time doing transport planning in the region. site inspections and recommending improvements to bus stops and routes. This includes hundreds of public bus services in Geelong, Warrnambool, I grew up in Geelong and moved Colac, Hamilton and Portland as well to Melbourne to study at Victoria as the inter-town services. We are University. I graduated with a Bachelor always looking at how we can do things of Arts in town planning and lived in more efficiently and service more Melbourne for seven years. I started people. Our region has a population my career working for the Department of more than 340,000 and covers 12.7 of Human Services working for the percent of Victoria’s total land area. Office of Housing. Since I started at the department three I have family and friends in Geelong years ago, there has been more money and when my partner got a job in available for service improvements. I Geelong, I moved back here. Geelong love being able to make a difference. is a great place to live; it’s like a mini We can improve things and see the Melbourne. We have easy access difference it makes to people’s lives. to Melbourne for day trips on the For example, I recently received a weekend and have the best of both thank you for changing a school bus worlds with beautiful coastlines and route in a remote area after a new countryside just 15 minutes away. family moved into the region. This My journey to work is an eight would not make the front page of the minute walk. newspaper but it is a big deal to the family involved.

69 70 Department of Transport Annual Report 2007-08 Outcome Five Efficient movement of freight

571 Efficient movement of freight

Freight and logistics is one of Rail Freight Network Review The Victorian Government Victoria’s most important industry commissioned a Rail Freight Network sectors. It employs thousands of Review (RFNR) committee to conduct a comprehensive review of Victoria’s people, every day goods rail freight network and identify opportunities for further development to households and businesses and improvement. and gets our products to the The RFNR report was provided to the Minister for Public Transport on world. Victoria’s freight task is 6 December 2007. The committee continuing to grow and ensuring consulted widely across regional Victoria from June 2007 receiving over our freight network is efficient 100 submissions. and sustainable is one of our The principal recommendations related to the cost of access key priorities. to the rail network and a track rehabilitation program. The report also recommended a number of rail-related projects including standardisation of the North East line and upgrading the Mildura line.

The Government allocated $42.7 million in the 2008-09 budget for the rehabilitation of major freight lines, which the review termed ‘Gold lines’, and to undertake general network maintenance.

In accordance with the recommendations of the review, any decisions to rehabilitate the silver lines will be based on industry commitment to use rail and to develop efficient supply chains. Rail support package In February, the State Government announced a two-year, $20 million package for Victoria’s rail freight industry. The package provides a temporary rebate for rail container freight carried from Warrnambool, Horsham, Mildura and Shepparton/ and extends the rail access fee rebate to both domestic and export grain.

72 Department of Transport Annual Report 2007-08 The government recognises the North-East Rail Dynon Port Rail Link economic and environmental Revitalisation Project The Dynon Port Rail Link (DPRL) advantages for bulk commodities On 30 May 2008, Premier John project will separate road and rail of rail over road and is actively Brumby, in association with Federal traffic to significantly improve access encouraging its use. To support Minister for Infrastructure, Transport, and increase rail freight capacity carrying bulk grain by rail, and in Regional Development and Local directly to the Port of Melbourne. response to Rail Freight Network Government, Anthony Albanese, The new overpass will reduce traffic Review recommendations, the DOT and Chief Executive, Australian Rail congestion by removing three level will operate a rebate scheme for Track Corporation (ARTC), David crossings on Footscray, Enterprise 12 months from 1 January 2008 for Marchant, announced the $500 and Appleton Dock Roads. domestic grain and for two years million North-East Rail Revitalisation from 1July 2008 for export grain. Project which includes the Wodonga The DPRL supports the government’s policy to increase the volume of rail Workforce Strategy Rail Bypass. This historic nation- freight and accommodates Port of for Freight Drivers building investment of a rail super highway between Sydney and Melbourne growth by reducing road The Workforce Strategy for Freight Melbourne is jointly funded by the congestion and improving the overall Drivers is a response to the current Victorian Government ($170 million), freight efficiency. and likely future labour and skills’ the Federal Government’s AusLink In June 2007, Leighton Contractors shortages of Victorian freight drivers. program ($45 million), and ARTC won the main design and construct It has been developed in partnership ($285 million). with the Transport and Logistics tender. Service relocation and (T&L) industry, supporting the The project will involve: preliminary traffic management sector’s workforce planning works commenced in August 2007, »» converting approximately 200 endeavours and focuses on the and a full traffic management strategy kilometres of existing broad gauge road freight sector. started in December 2007. track from Seymour to Albury to Issues the strategy aims to standard gauge using concrete Bridge works commenced in October address include: sleepers 2007, with Stage 1, the westbound carriageway, opened in July 2008. »» building additional standard gauge »» overall industry image Stage 2, the Footscray Road inbound, platforms at Broadmeadows, will open in early 2009. »» training culture, for specific and Avenel, Violet Town, Euroa, Chiltern general skills and Springhurst together with Total budget is $173.96 million »» identification of clear career a new broad gauge platform at including $110 million from Federal pathways Seymour and special intermediate AusLink funding. The Port of crossovers at Benalla and Melbourne Corporation has allocated »» matching of working conditions Wangaratta $12.1 million for the project, plus and practices to lifestyle aspirations »» gauge converting and upgrading $1.5 million for associated works in »» remuneration relative to skills three V/Line and 15 the port. The project is on schedule required and task undertaken. passenger carriages to ensure for completion in mid-2009. high-quality, reliable service »» the Wodonga Rail Bypass, which will remove rail infrastructure from the centre of Wodonga to allow redevelopment and improve traffic safety. A new station will be built west of Wodonga.

Construction begins in late 2008 for completion in 2010.

73 Mildura Rail Corridor »» designing and implementing the ‘Connect Freight’ transport The $73 million Mildura line freight information system to deliver travel upgrade will deliver substantial time, traffic alerts and roadwork economic benefits for the economies reports to transport operators via of Mildura and Victoria. The project is email and SMS, and completing the jointly funded, with $53 million from following four road improvement the State Government and $20 million projects that specifically target from the Federal Government’s freight efficiency: AusLink program. The upgrade will improve the reliability and efficiency -- Plummer Street Bypass, between of the line and give producers more Graham Street and West Gate incentive to transport goods by rail. Freeway, Port Melbourne

Replacement of two in every five -- Boundary Road duplication, sleepers along the 525 kilometre Fitzgerald Road to Raymond line with gauge convertible timber Road, Laverton North sleepers will make the rail link faster -- Grieve Parade duplication, just and more reliable and allow freight north of Kororoit Creek Road trains to travel up to 80 kilometres per to just south of Dohertys Road, hour, reducing travel times between Altona North Melbourne and Mildura from 14 hours to less than 10. -- Princes Highway West, road widening at the intersection with Work commenced in Mildura in Bacchus Marsh Road and Cox December 2007. By June 2008, over Road, Corio. one third of the 525 kilometre track upgrade had been completed. Port of Geelong Rail Access Improvement Project Road freight The Port of Geelong Rail Access The great majority of Victoria’s freight Improvement Project (GRAIP) will task is transported by road and improve standard gauge rail access DOT works closely with VicRoads to to the port, and increase rail’s share develop and implement projects that of freight transport into the Geelong improve the efficiency of the road Port. The major components of the freight network. works are the construction of the dual gauge Corio independent goods line VicRoads contributed to this outcome off the Geelong grain loop to North in 2007-08 by: Shore Road, and construction of three »» continuing to play a key role in new standard gauge tracks (sidings) developing and implementing in North Shore Yard. national transport reform projects The project supports the including: government’s policy to increase the -- performance-based standards volume of freight moved on rail and for heavy vehicles which allow for will help reduce transport costs greater innovation in the design of and generate savings for local and vehicles regional businesses.

-- the Intelligent Access Program The estimated cost of the GRAIP (IAP) which, when introduced in is $33.36 million. The project is Victoria in late 2008, will enable on schedule and is expected to be remote tracking of the movement completed by first quarter of 2009. and location of heavy vehicles to ensure they are complying with agreed conditions

74 Department of Transport Annual Report 2007-08 75 Port land use planning – The ongoing growth of trade through Port of Melbourne Corporation Ports of Geelong and Portland these ports, combined with the intensive investment by port-related The Port of Melbourne is Australia’s The preparation of land use strategies industry and the public sector in largest container and general cargo for Victoria’s commercial ports freight infrastructure, underscores port. It handles about 36 percent of is consistent with directions set the importance of ensuring adequate the country’s container trade and out in the Victorian Ports Strategic land side areas for long-term about $75 billion of trade annually. Framework 2004 (VPSF). Direction requirements. The port generates employment for two of the VPSF addressed the need tens of thousands of people directly to anticipate and plan for future DOT has worked with all commercial and indirectly. The Port of Melbourne port land, access and infrastructure port managers to prepare port land- Corporation is the strategic manager needs to maintain an effective freight use strategies which: of the Port of Melbourne with a logistics chain. for undertaking the integrated »» recognise the state economic management and development of the Commercial trading ports are key significance of each commercial land and maritime functions of the elements in Victoria’s freight network port port. and require adequate land-use »» identify key port related assets that planning to protect their long-term will require protection over the Key achievements in 2007-08 include: growth requirements. long-term, such as environmental »» total port trade grew by 6.7 percent The Port of Geelong is Victoria’s values and transport corridors and container throughput grew by largest bulk cargo port, handling »» recognise land use planning 7.8 percent. New motor vehicle petroleum products, woodchip, objectives in adjacent areas trade increased by 16.3 percent fertiliser and grain. The value of trade to 389,000 units, equivalent to handled at the port is approximately »» address appropriate buffers around handling 1,060 vehicles every day $5.6 billion and future trade port infrastructure and their »» the Channel Deepening Project, throughput is estimated to grow by 35 transport corridors involving dredging the shipping percent (2002-20). »» identify land use and development channel in Port Phillip Bay and issues requiring further action, The Port of Portland is a deep-water the Yarra River, commenced in including recognition in state and bulk port, handling agriculture February 2008. At 30 June 2008, local planning policy frameworks and fertiliser cargo, and is growing about 5.3 million cubic metres or and implementation in local rapidly. The value of trade handled 23 percent of the total project by planning schemes. is approximately $1.4 billion. The volume, had been dredged future trade throughput is expected to »» some $48.5 million was invested double within the next five to 10 years, in capital projects, excluding the particularly with significant growth in Channel Deepening Project woodchip and mineral sand product. »» a total of 3,580 ship visits was recorded with container vessel visits growing by 3.6 percent to 1,471 »» a trial using Toyota Prius Hybrid cars as part of the operational fleet to reduce carbon emissions commenced

76 Department of Transport Annual Report 2007-08 »» a record 44 cruise ship visits, »» James Cain commenced as »» expanding the successful Port including the maiden visit of the Chairman of PoHC on 1 April 2008, Education Program to 12 more Queen Victoria and the final visit of replacing outgoing Chairman John schools involving over 450 students Queen Elizabeth Two (QE2), called Warburton. »» Neil Edwards replaced retiring at Station Pier Further details of Port of Hastings inaugural Chairman Michael »» a community relations strategy to Corporation’s achievements Dowling and John McQuilten build and foster relationships with are included in its annual became a new board member neighbours of the port precinct was report which is available at »» the use of the George Molland, implemented. www.portofhastings.com.au the VRCA’s multi-purpose launch, was expanded for the monitoring More information on the Channel Victorian Regional of safety in port waters on Deepening Project is available in Channels Authority Outcome Two. Further details of weekends and during heavy traffic Port of Melbourne Corporation The VRCA manages the channels periods, including recreational achievements are included in its in the port waters of Geelong, and boating events annual report which is available at oversees channel operations in the »» the community education campaign www.portofmelbourne.com ports of Hastings and Portland. It to inform the boating public of aims to provide safe, secure and safety risks for small leisure Port of Hastings environmentally responsible services craft using commercial shipping to the users and operators of As one of Victoria’s key regional channels was expanded Victoria’s regional commercial ports. ports, the Port of Hastings makes »» stakeholders continued to be a significant contribution to this Key achievements for 2007-08 supported by shipping and maritime Outcome. include: information, including upgrading VRCA’s website with real-time tide, Key achievements for 2007-08 »» installation of $7 million worth of weather and shipping information. include: cutting-edge navigation beacons at Geelong to significantly enhance the »» the Port of Hastings Corporation Further details of VRCA’s safety and security of commercial recorded a significant increase achievements are included in its shipping in revenues from the year, with annual report which is available at income from port operations »» SmartDock, a laser-controlled www.vrca.com.au of around $1 million, up from ship docking system to improve $498,000 in 2006-07 safety was installed at Geelong, the first Victorian and second »» the Port of Hastings Land Use Australian port to do so. SmartDock and Transport Strategy (PLUTS) is Victorian designed and was revised following community manufactured consultation and a recommended PLUTS was provided to the State »» a strategic review and assessment Government of Geelong port’s capacity to meet future commercial shipping »» a community consultation feedback demands commenced. This report on the PLUTS was released involved computer modelling and in September 2007 investigation of improved channel »» a Keep Clear of Big Ships brochure access and minimisation of risks was developed and distributed to in light of expanding trade and relevant stakeholders to encourage larger ships safe boating on Western Port

77 Brett Summers Project Manager, Dynon Port Rail Link

78People Department Profile of Transport Annual Report 2007-08 The aim of the Dynon Port Rail Link is Ultimately, we are all working for the to increase the efficiency of rail freight same end result: increasing rail freight movements into the Port of Melbourne. efficiency. The project is not very high We are building a road bridge and profile, but commuters will see some constructing the rail line underneath real benefits from the removal of a to give us uninterrupted rail access to level crossing on Footscray Road. and from the port. The main economic benefit will be I have been working on the project delivered at the completion of works since early 2006. I have a Bachelor of when multiple trains will have the Engineering from Swinburne University ability to access the port at any given and started my career working in time. The project will help contribute private sector construction. I then to a government objective of having took a completely different tack and more freight carried by rail. worked in exhibition and event project management before joining the I enjoy being based on-site and department’s Regional Fast Rail team. watching the project grow from day- to-day. Seeing it develop in real-time This project has a little bit of is great because I have been part of everything: road, rail, signalling and the project since the early days. It is structures. This is complicated by the satisfying to develop something on and environmental issues. paper and then watch it take shape It is a challenge but it is a project in the form of bridges, roads and which motivates me to come to work rail being built. each day. Construction work started on the There are a lot of diverse stakeholders Dynon Port Rail Link in 2007. Things including the port operators, the are going well and it is due to be market operators, Maribyrnong and finished in 2009. I will feel a real sense Melbourne City councils, VicRoads, of achievement when the project is VicTrack and the Federal Government. delivered. Keeping them all happy is difficult because of competing interests so it involves a lot of negotiation to achieve mutually beneficial outcomes.

79 80 Department of Transport Annual Report 2007-08 Outcome Six Integrated policy development

681 Integrated policy development

Transport information DOT works closely with key modelling and analysis transport agencies and land use The Victorian Integrated Survey of authorities to develop policies and Travel and Activity 2007 (VISTA 07) is a 12-month multi-modal survey implement projects that will meet of the personal travel and activity of 16,250 households across the Victoria’s transport infrastructure Melbourne Statistical Division (MSD), the City of Greater Geelong and the and service needs. regional centres of Ballarat, Bendigo, Shepparton and the Latrobe Valley. Several divisions contribute to this VISTA 07 collects data on how, why, Outcome, working closely with when, where, how much and what travel and activity is undertaken on a other government departments to typical day and by whom. The VISTA 07 develop integrated policy solutions. data will be used in transport model development and transport policy and Contributions to this Outcome project development and assessment. Maintaining Mobility: - span a broad range of topics The Transition from Driver including walking and cycling, to Non-driver The Victorian Government recognises transport planning, climate the importance of understanding the change and older drivers. mobility needs of older Victorians, particularly in light of our ageing population. Guided by a Specialist Steering Group, DOT has developed the strategic policy framework Maintaining Mobility: The Transition from Driver to Non-driver to inform discussion and identify practical actions to help senior Victorians maintain their mobility as they start to reduce the amount of driving they do, or as they stop driving altogether. The framework was launched by Minister Kosky at the Longevity Symposium: Policy Implications of Victoria’s Ageing Population hosted by the DPCD on 27 November 2007.

82 Department of Transport Annual Report 2007-08 One of the initiatives in the document A comprehensive stakeholder Transport Research is the Mobility Advisor Pilot, which is engagement program on the and Policy Analysis Bulletin a tailored program to help maintain discussion paper received 78 formal This quarterly publication is produced people’s mobility and access to submissions with a feedback by DOT to communicate findings of activities when they are transitioning summary released in March 2008 policy analysis and research activities from driving to non-driving. The pilot covering general expectations undertaken by the department. The will trial a mobility advisor service, and appropriate objectives for bulletin goes to about 3,000 recipients, which will provide personalised any legislation. The stakeholder including community libraries. The mobility advice and support related engagement process, which broad range of issues covered so far to the participants’ local residential found significant support for the include the new personal travel and areas, and their abilities and needs. government’s policy directions, activity survey, VISTA; the Transport The pilot will commence in two metro included: Demand Information Atlas; climate local government areas in September »» 40 stakeholder briefings change and transport; transport 2008 and is due to conclude by energy and land-use; AusLink2 and March 2009. »» eight forums attended by 170 time use research. stakeholders (in both Melbourne Transport Demand and rural and regional areas) Macro-Urban Form, Transport Information Atlas »» workshops with 120 local Energy and Greenhouse Gas The first edition of the Transport government and state government Emissions Project Demand Information Atlas (TDIA) stakeholders This project aims for a better was published in 2007-08. TDIA is a understanding of the impact of compilation of statistics that provide »» two Ministerial Round Tables. and urban form on greenhouse gas important insights into transport The Review and the development of (GHG) emissions and transport energy demand. It compiles reliable and a new, overarching transport , outcomes in Melbourne. The project recent data relating to key aspects of the Transport Integration Act, to seeks to: the passenger and freight tasks. replace the will set »» develop a better understanding of the direction for a more integrated Transport legislation review how urban structures influence transport system as set out in the transport costs/energy use and As recognised in MOTC, an integrated Annual Statement of Government behavioural responses to changes and sustainable transport system for Intentions (February 2008). The new in transport costs Victoria requires a comprehensive statute is expected to be introduced transport legislation review. to parliament in late 2008 »» assess urban development that supports efficient transport choices DOT commenced the Transport The new legislative and policy settings Legislation Review (the Review) continue Victoria’s national leadership »» quantify transport energy outcomes in 2007 with a discussion paper, in policy and legislation reform and greenhouse gas emissions ‘Towards an Integrated and Sustainable and will provide a contemporary at the small area level across Transport Future: A new legislative framework to deliver an integrated Melbourne framework for transport in Victoria’, and sustainable transport system »» develop land-use/transport released for public comment in to meet the long-term needs of scenarios to test transport energy October 2007. Victorians. and greenhouse gas outcomes and consider which scenario will produce the most efficient transport energy use and the lowest emissions.

83 84 Department of Transport Annual Report 2007-08 Transport Connections will be delivered by VicRoads. the local Area Access Program, Program II $11.6 million has been allocated provides funding for small scale for central Melbourne projects, infrastructure projects which aim to The Transport Connections with the remaining $16.5 million to improve access to walking, cycling Program is funded till June 2010 be used for projects across the state. and public transport within local through an $18.3 million budget areas. allocation as part of the Meeting Our In 2007-08, VicRoads added 13.8 Transport Challenges statement. The kilometres to Victoria’s existing The second grants round for Local Program is a partnership between network of bicycle facilities at a Area Access and TravelSmart was the Department of Planning and cost of $5.7 million. New pedestrian successfully run from April to Community Development (DPCD); facilities, such as pedestrian operated October 2007. This round attracted 60 Department of Transport; the signals, were installed at 16 locations applications, with 22 projects funded. Department of Human Services; and and 89 sites were upgraded with This represents a commitment of over the Department of Education and audio-tactile pedestrian push buttons $3.2 million, with local government Early Childhood Development. and textured tiles to provide safer to provide equal funding to deliver walking surfaces. New infrared TravelSmart and local access Community groups and organisations, detection systems were installed at infrastructure throughout the state. individuals, transport providers and 26 signalised pedestrian crossings to local businesses work together to reduce delays for pedestrians. Eight projects from the first grants develop tailored transport solutions round were completed during 2007- to make better use of their existing TravelSmart 08. public and private transport resources. The TravelSmart initiative aims to Transit Cities reduce people’s dependency on The Transport Connections Program cars and encourage them to use The Urban Redevelopment Transport commenced as a pilot program sustainable travel alternatives such as Infrastructure Coordination unit in 2003 with nine local project walking, cycling and public transport. was established in September 2006 partnerships across Victoria. Now, to provide leadership and portfolio through the $18.3 million allocation, In May 2008, 23 workplaces, including oversight and coordination of the the Program has expanded to 32 10 government departments, were government’s Transit Cities projects. project partnerships covering surveyed, generating over 9,000 The unit has a key involvement in all rural, regional and interface responses, with this information the planning, development and municipalities. now being used to support the delivery of integrated transport development of travel plans. and infrastructure outcomes and Walking and Cycling provides a development facilitation A number of resources were role to support practical and timely The Victorian Government Walking developed to support TravelSmart, achievement of Transit City objectives. and Cycling branch encourages including six TravelSmart Maps, greater use of sustainable, healthy and the CycleSmart and WalkSmart In May 2008, the government and community-based transport websites, which were completed in announced $51.9 million of funding options. March 2008. over four years for the Transit Cities program including: It is making the largest investment The collegiate network of TravelSmart into walking and cycling in the state’s officers was convened six times over »» $24.5 million for improvements in history. the year, helping our partners to the Geelong railway station precinct enhance their skills. A range of walking and cycling »» $8.4 million for design work that will lead to the integration of research programs were conducted in Local Area Access program Broadmeadows railway station with 2007-08. Results from this research and TravelSmart grants are helping to inform funding the town centre In 2006 TravelSmart began a new decisions and policy direction. »» planning and delivery of integrated program of grants which sought to transport and infrastructure increase the capacity of councils and Funding of $28.2 million was initiatives across several other other organisations to develop and secured for the Walking and Cycling Transit Cities. Infrastructure Program, which implement projects that encourage changes in travel behaviour. A complementary program of grants,

85 Key achievements for URTIC in 2007- 280 applications were considered This complements funding provided in 08 include: in 2007-08. Concurrently, the the state budget for three AusLink 2 department, worked with councils, projects: »» providing $11.2 million for further the Growth Areas Authority, the development of Geelong and »» Anthony’s Cutting ($5 million) Department of Planning and Ringwood Transit Cities Community Development and other »» Geelong Ring Road Stage 4B »» providing transport planning, stakeholders to develop structure ($5 million) analysis and technical information, plans to guide development in »» Princes Highway West ($5 million). and jointly contributing to the metropolitan activity centres and preparation of business cases growth areas. Green Triangle Freight Summit for Geelong, Broadmeadows and Ringwood Transit Cities Intergovernmental The department helped to coordinate Relations the Green Triangle Freight Summit, »» establishing Footscray Renewal to convened by the Victorian and South DOT works closely with the deliver the $52.1 million Footscray Australian Governments on 9 May Commonwealth Department of Transit City program. This will 2008 in Portland and Mt. Gambier. provide a modern footbridge and Infrastructure, Transport, Regional forecourts at Footscray station, an Development and local government, The summit provided an opportunity upgrade of main streets in the town particularly on projects that are being for industry and local government centre, facilitation of private sector delivered under the AusLink program. to brief the Victorian and South development of strategic sites in The Commonwealth Government Australian Governments on the local central Footscray, development has made commitments to fund transport impacts of the harvesting of traffic management strategies 25 transport projects in Victoria, of timber plantations in the Green and establishment of a one-stop including 20 projects nominated in the Triangle from 2009 onwards. shop for planning approvals and state’s AusLink 2 policy document, development facilitation National Transport Links – Growing Presentations were made by timber Victoria’s Economy. These projects companies, the Port of Portland, »» continuing to build strong are a mix of road, rail and intermodal Freight Logistics Councils and local relationships across government projects. government. departments and agencies to assist in achieving Transit City objectives. In the 2008 Federal Budget, Victoria The Victorian and South Australian received Commonwealth funding Ministers agreed to a number of Infrastructure planning for eight projects to enable early actions, including: The Director of Public Transport commencement of AusLink 2 projects. These projects are: »» development of a Freight Action became a Referral Authority under Plan for the region, with a draft to the Planning and Environment Act 1987 »» West Gate Bridge ($25 million) be completed by state and local in October 2006. This ensures that government officials by December »» Western Ring Road ($14 million) public transport, walking and cycling 2008 are accounted for in nominated major »» Geelong Ring Road Stage 4A »» establishment of a Cross-Border developments. ($6.5 million) Regulatory Efficiencies Taskforce The Director considers every referred »» Colac-Lavers Hill Road ($3 million) to identify regulatory barriers to the planning application and may attach efficient and seamless movement of »» Nagambie Bypass ($5 million) conditions to development approvals. freight between the two states This improves public transport »» Western Highway ($5 million) »» convening a Freight Summit twice- outcomes, better integrates land-use »» Princes Highway West ($1 million) yearly and transport planning and furthers the objectives of . »» Princes Highway East ($1.2 million). »» undertaking joint advocacy between the state and local governments and industry to the Commonwealth Government to highlight the strategic value to national supply chain efficiency of addressing constraints in the Green Triangle transport network.

86 Department of Transport Annual Report 2007-08 National Transport Policy Key achievements include: »» developing and launching – incorporating passenger Keeping Melbourne Moving, »» leading the development of a transport and land-use planning a $112.7 million short-term comprehensive transport plan for into the national transport congestion management plan, Victoria, in the context of future planning process released in April 2008. Keeping urban development and regional Melbourne Moving is aimed at planning. The plan will respond to As part of the Australian Transport easing congestion in the short- the proposals for Melbourne’s east- Council (ATC) infrastructure planning term, while medium- and longer- west corridor in Sir Rod Eddington’s and investment work-stream led term solutions, like major road report: Investing in Transport: East by DOT, a National Working Group upgrades and the purchase of new West Link Needs Assessment, is identifying how best to include trains and trams are underway. Key (EWLNA report) as well as other transport and land-use planning in features of the plan are: a new national transport planning transport priorities for the state. It process. is due for release by the end of 2008 -- standardisation and extension of more than 150 clearways within »» continuing to the government’s Guideline and case study 10 kilometres of the Melbourne response to the Melbourne 2030 development has commenced, with a CBD view to having a working draft agreed Audit (Planning for all of Melbourne), by all states and territories and the the Victorian Competition and -- extension of the bus and tram Commonwealth by November 2008. Efficiency Commissions‘ inquiry priority programs into Melbourne’s liveability; and -- extension of rapid response precinct structure planning with the The aim is to develop practical patrols guidelines that integrate land-use Growth Areas Authority and relevant and transport at the implementation agencies -- funding boost for cycling and stage. pedestrian facilities »» developing a national congestion Integrated Transport issues paper and work program -- information campaign for motorists. Planning »» coordinating the Premier’s DOT is continuing a range of Congestion Roundtable integrated transport planning in January 2008 initiatives commenced by the former office of Coordinator General, Infrastructure.

ITPD coordinates whole of government transport and land use planning. It strengthens links between key transport and land use authorities, including the Department of Transport, VicRoads and the Department of Planning and Community Development. ITPD worked closely with other DOT divisions and VicRoads on a range of initiatives during 2007-08.

87 I have been working to better This analysis shows that public understand the role of public transport transport will be part of the solution in in reducing greenhouse gas emissions. moving to a more sustainable future I did a comparison of emissions and supports changes in public policy produced by people using cars versus towards giving public transport more public transport and was able to work priority. I will have had an input into out how many emissions were saved by planning for public transport into the people switching between the two. future.

My analysis showed that people I did a double degree in chemical switching from cars to public transport engineering and arts at Monash can reduce their greenhouse gas University. I learnt a lot about emissions by a considerable amount. improving energy efficiency, but I The work was very well received, didn’t want to just supply a product and has been useful in both policy to meet market demands. I wanted development and communicating to look at how we could get to a more to stakeholders including across sustainable future and I felt like the government, academics, community private sector would give me only groups and the private sector. half the story. Working in government allows me to look at all aspects of the problem that we face in Victoria.

I was interested in public policy and so applied for a job under the Victorian Public Sector graduate scheme. Since I started at the department three years Adele ago, I have been able to do a variety of things. McCarthy One of the first projects I was involved in was the St Kilda Road tram Project Officer, upgrade program. The first stage of Climate Change construction has now started on that and Public Transport project so it has been good to see it come full circle.

Lately, I have been working on the relative greenhouse benefits of public transport and developing policies on how to reduce their impact even further. This can be done through the use of new technologies or new sources of energy. I have also provided input into climate change policy more broadly.

It is an exciting time. There have been lots of changes going on with climate change. For example, the federal government’s emissions trading scheme is due to start in 2010. At a state level, we need to understand how we can best enable the community and businesses to adjust, including reducing the carbon footprint of our transport system.

88 Department of Transport Annual Report 2007-08 People Profile89 90 Department of Transport Annual Report 2007-08 Outcome Seven Organisational capability building

791 Organisational capability building

DOT recruits individuals with specific To ensure successful delivery of skills sets and offers targeted projects and objectives, peoples’ learning and career development opportunities. As initiatives are skills and organisational efficiency delivered as part of the Meeting Our Transport Challenges, project need to be constantly monitored management skills have become a key part of the career development and developed. Strategies strategy. that increase engagement, DOT recognises that it is essential to commitment and satisfaction, identify future workforce needs and design appropriate programs to but reduce stress will enhance meet them. performance and employer During 2007-08, DOT continued to build upon existing capability by reputation. focussing on developing our people, processes and systems with a range of initiatives. DOT’s People Strategy 2007-10 Launched in October 2007, this strategy aims to build and secure a strong workforce in a climate of economic prosperity, an ageing population and labour shortages. The strategy is focussed on three key objectives: 1. attracting and recruiting the right people 2. creating a great place to work 3. retaining valuable knowledge and skills.

Key achievements in 2007-08 include the following: »» a short promotional DVD for DOT shown at local and international careers fairs has helped fill difficult roles »» in addition to the existing VPS-wide graduate program, an 18-month engineering program and a three year rail engineering graduate program with specialist technical streams have attracted highly qualified graduates

92 Department of Transport Annual Report 2007-08 »» creation and testing of an employee Support for train drivers Risk management value proposition In an Australian first, legislation was A range of activities to identify »» 2007 DOT biennial engagement amended to enable the Director of and address areas of risk were survey revealed engagement levels Public Transport to provide financial undertaken. had increased by five percent. assistance to drivers of trains involved DOT has now set 12 benchmarks in fatal collisions. This support is Key achievements include: covering job flexibility, workloads in recognition of the trauma and »» a review of the Risk Management and a safe working environment significant mental stress experienced Framework against similar-sized organisations by train drivers in the event of a suicide or fatal accident. »» development of a new Strategic »» retention strategies included Risk Register promoting all positions internally Accommodation and externally, building »» a major review of the DOT Fraud management skills and providing DOT completed two major and Corruption Detection and learning and development accommodation projects in 2007-08, Prevention Program opportunities both on time and within budget. In »» substantial completion of the first November 2007, the head office of »» work continues around better phase Business Continuity Plan DOT was established at 121 Exhibition understanding the workforce, Street, Melbourne. The new office »» a series of risk management including demographic composition has a four-star Australian Building workshops across DOT and capability levels. Succession Greenhouse Rating. management strategies for building »» an increased focus on project risk management through a Project a talent pipeline were developed DOT also refurbished its Management Framework including a pilot Accelerated accommodation at 80 Collins Street. Development Program for high Although working to a tight timeframe »» risk management training for potential VPS grade 6 people this project was completed on time managers and development of a »» ‘Flex-Ability’ guide, released in and within budget. program to further embed risk April 2008, encourages employee management in all departmental Records and document participation in work/life balance business planning. Management and diversity initiatives. This was supported by a range In 2007-08 DOT implemented an of related presentations and electronic document and record activities, including managing management strategy. This included time as a working parent, integrating a document management retirement planning and building system (TRIM Context) on all desktops understanding of different health and providing education and training issues for all DOT people, via a mandatory half-day course, e-learning, manuals »» VPS grade 4,5 and 6 management and quick reference guides. DOT also staff attended the ‘managing with migrated documents and records confidence’ program from both legacy and retired systems. »» design and implementation A strong operational team was of various programs to build established to support people through the recruitment skills of DOT a successful implementation. managers.

93 Kellie Lawrence Divisional Management Consultant, People and Organisational Development

94People Department Profile of Transport Annual Report 2007-08 After being seconded in April 2005 My objective is to streamline the from the State Services Authority on current process and reduce the a three month, fixed term contract, amount of separate action plans I started with the Department of required for each area, incorporating Infrastructure as the Indigenous all needs into an overarching Equity, Liaison Officer. In this role I was Diversity and Inclusion Plan. This will required to develop and implement allow for the focus to shift from one a range of Indigenous employment specific group, to a broader and all programs for the department. This encompassing way of thinking about was a challenging project, as prior diversity. to this, the department had no One of the highlights of my career at Indigenous specific programs and DOT so far is our partnering with RMIT no profile throughout the Indigenous to provide an annual Indigenous art community. exhibition during NAIDOC Week. This Within three months, a range of has been hugely successful. short- and long-term programs had I have organised many special events been developed and implemented during my time at the department for including: Indigenous cultural weeks of significance such as Cultural awareness sessions, a tertiary Diversity Week, International Women’s scholarship program, unique branding Day, Reconciliation Week and NAIDOC for programs, promotion in the Koori week. Particular highlights have Mail and a work experience program. been: King Marong and the African Happily my contract was extended and drummers and dancers, Waleed Aly I was able to build on the success of from the Islamic Council of Australia, the programs. Indigenous activist Gary Foley, and While it was a difficult environment Tito Tut Pal, a Sudanese refugee. in which to implement Indigenous I work full-time and am studying programs, I received great support a graduate diploma in Human from several divisions. These divisions Resources part-time. I also have a recognised that even though the two-year-old, Belle. I like to keep department did not provide services busy. I love working as part of my to the Indigenous community it could team, particularly as I get a lot of provide opportunities to help level the opportunities and the freedom to put ‘playing field.’ up an idea or proposal and run with it. The role of Diversity Coordinator I believe the department provides was a fantastic opportunity for me fantastic benefits and inspirational to broaden my skills and knowledge leadership. I look forward to see how and to play a key role in developing things will change and improve in and implementing initiatives to build the future. a more inclusive workplace. The diversity portfolio is wide ranging and includes: the Disability Action Plan, women, youth, people from a non- English speaking background and Indigenous programs.

95 96 Department of Transport Annual Report 2007-08 Office of the Chief Investigator

97 Office of the Chief Investigator

The primary focus of the The Chief Investigator, Transport investigations is not to apportion and Marine Safety Investigations is blame but to determine causes and identify issues for review, monitoring a statutory position established on or further consideration. 1 August 2006 under Part V of the The Chief Investigator is not subject to the direction or control of the Transport Act 1983. Minister(s) in performing or exercising his functions or powers, however, The principle function of the the Minister(s) may direct the Chief Investigator to investigate a public Office of Chief Investigator is to transport safety matter or a marine improve public transport and safety matter. An investigation conducted by the marine safety by independently Chief Investigator does not replace investigating transport and marine the powers of regulatory bodies to conduct their own investigations into safety issues and reporting all the same incident. results to the Minister for Public The office’s seven staff include the Chief Investigator, two rail and two Transport and/or the Minister marine investigators, one engineer for Roads and Ports. and an office manager. For more information please visit www.transport.vic.gov.au/ chiefinvestigator

98 Department of Transport Annual Report 2007-08 Key achievements 2007-08: OCI investigations 2007-08 »» the Chief Investigator began 10 Train / Tram / Bus investigations in 2007-08 including the Kerang investigation report Incident Date Location Description which he completed and submitted 22/08/07 Somerville Level crossing collision between a to the Minister for Public Transport passenger train and a light truck resulting on 15 January 2008 in one fatality »» various safety actions 24/09/07 Melbourne Two tram collision in St Kilda Road recommended in Chief 16/11/07 Spencer Street Yard Two train collision in the shunting yard at Investigator’s reports have Spencer Street been implemented by the relevant agencies 16/01/08 Red Cliffs Level crossing collision between a freight train and a B-Double road tanker »» the Office has presented at public 20/02/08 Sandringham Overrun at the end of the Sandringham line forums in Portland, Port Fairy, Geelong and Lakes Entrance and 06/03/08 Ardeer VLocity train – pedestrian crossing fatality participated in seminars organised 03/04/08 Melbourne Tram wrong-railed on crossover by waterways managers, public in Collins Street transport infrastructure managers 12/05/08 Melbourne Two tram collision at Nicholson Street and and regulatory authorities to Victoria Parade increase the profile of the Office of the Chief Investigator and its June 2008 Victoria Various track maintenance safeworking representatives occurrences in Victoria »» Transport requested assistance from the Chief Marine Investigator into a rail incident Incident Date Location Description and fatality in Dalby chaired by 13/12/07 Yarra River Sinking of the Maheno river ferry Ian McCallum with approval from Minister Kosky.

99 These financial statements for the year ended 30 June 2008 cover the Department of Transport (formerly Department of Infrastructure), the Director of Public Transport, ‘The Director’, the Secretary to the Department of Transport as a body corporate, the Statutory Offices of ‘The Director’ (Public Transport Safety and the Chief Investigator, Transport and Marine Safety Investigations). The Department of Transport is a government department of the State of Victoria. 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.transport.vic.gov.au

100 Department of Transport Annual Report 2007-08 Contents

102 Accountable Officer’s and Chief Finance Officer’s Declaration 103 Victorian Auditor-General’s Report 104 Operating statement 105 Balance sheet 106 Statement of changes in equity 107 Cash flow statement 108 Notes to the financial statements Financial statements

101 Accountable Officer’s and Chief Finance Officer’s Declaration

Department of Transport Accountable Officer’s and Chief Finance Officer’s Declaration

We certify that the attached financial report for the Department of Transport have been prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions, Australian accounting standards and other mandatory professional reporting requirements.

We further state that, in our opinion, the information set out in the operating statement, balance sheet, statement of changes in equity, cash flow statement and notes to and forming part of the financial statements, presents fairly the financial transactions during the year ended 30 June 2008 and financial position of the Department of Transport as at 30 June 2008.

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

We authorise the attached financial report for issue on 27 August 2008.

Robert Oliphant Jim Betts Chief Finance Officer Secretary and Accountable Officer Department of Transport Department of Transport

Melbourne Melbourne

Dated: Dated:

102 Department of Transport Annual Report 2007-08 Victorian Auditor-General’s Report

103 Operating statement for the financial year ended 30 June 2008

2008 2007 Note $’000 $’000 Continuing operations INCOME Output appropriations 4 3,993,959 3,705,338 Special appropriations 4 1,767 1,700 Resources and assets received free of charge 8,911 196 Other income 5 326,164 303,712 Total income 4,330,801 4,010,946

EXPENSES Payments to service providers and transport agencies 6 3,801,954 4,010,772 Supplies and services 7 159,953 175,206 Employee benefits 8 93,075 90,814 Assets written off/disposed of 9 37,951 23,749 Capital asset charge 21,003 18,495 Depreciation and amortisation 10 7,285 21,035 Resources and assets provided free of charge 11 4,172 937 Total expenses 4,125,393 4,341,008

Net result for the period 205,408 (330,062)

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

104 Department of Transport Annual Report 2007-08 Balance sheet as at 30 June 2008

2008 2007 Note $’000 $’000

CURRENT ASSETS Cash and cash equivalents 21(a) 429,206 482,279 Receivables 12 612,893 504,421 Prepayments 2,511 2,838 Inventories 13 64,387 - Intangible assets 14 955 8,900 Total current assets 1,109,952 998,438

NON-CURRENT ASSETS Receivables 12 2,702 2,433 Property, plant and equipment 15 460,077 322,147 Intangible assets 14 68,919 65,151 Total non-current assets 531,698 389,731 Total assets 1,641,650 1,388,169

CURRENT LIABILITIES Payables 16 622,261 544,898 Loans and advances from Victorian Government 17 162,297 224,659 Interest bearing liabilities 18 1,356 843 Provisions 19 24,981 23,921 Total current liabilities 810,895 794,321

NON-CURRENT LIABILITIES Interest bearing liabilities 18 1,718 2,123 Provisions 19 201,597 191,009 Prepaid lease income - 1,778 Total non-current liabilities 203,315 194,910 Total liabilities 1,014,210 989,231 Net assets 627,440 398,938

EQUITY Contributed capital 20(a) 319,971 360,029 Asset revaluation reserves 20(b) 152,476 88,994 Accumulated surplus/(deficit) 20(c) 154,993 (50,085) Total equity 627,440 398,938 Commitments for expenditure 23 Contingent assets 24 Contingent liabilities 25

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

105 Statement of changes in equity for the financial year ended 30 June 2008

2008 2007 Note $’000 $’000 Total equity at beginning of financial year 398,938 720,642

Revaluation increment 20 (b) 63,152 19,755 Net income recognised directly in equity 63,152 19,755 Net result for the period 205,408 (330,062) Total recognised income and expense for the period 268,560 (310,307) Transactions with the state in its capacity as owner 20 (a) (40,058) (11,397) Total equity at end of financial year 627,440 398,938

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

106 Department of Transport Annual Report 2007-08 Cash flow statement for the financial year ended 30 June 2008

2008 2007 Note $’000 $’000

CASH FLOWS FROM OPERATING ACTIVITIES RECEIPTS Receipts from Victorian Government 3,967,816 3,611,519 Receipts from other entities 135,947 157,513 Goods and Services Tax recovered from the ATO 182,000 199,245 Interest received 4,784 4,174 Other receipts 182,539 107,599 Total receipts 4,473,086 4,080,050 PAYMENTS Payments to service providers and transport agencies (3,786,703) (3,913,807) Payments for supplies and services (490,656) (347,790) Goods and Services Tax paid to the ATO (14,560) (16,819) Capital asset charge (21,003) (18,495) Other payments (23,170) - Total payments (4,336,092) (4,296,911) Net cash flows from/(used in) operating activities 21 (c) 136,994 (216,861)

CASH FLOWS FROM INVESTING ACTIVITIES Payments for property, plant and equipment (97,243) (71,808) Payments for intangible assets (5,566) (7,778) Proceeds received from clients and sponsor agencies 259,326 136,059 Payments to contractors for client and sponsor (200,478) (153,583) agency projects Net cash flow used in investing activities (43,961) (97,110)

CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from capital contribution by Victorian 718,491 463,453 Government Payments of capital contribution to VicTrack (619,299) (421,016) Payments of capital contribution to other entities (182,433) (107,300) Repayments of finance liabilities (575) (480) Proceeds from loans and advances from Victorian 222,868 199,155 Government Repayment of loans and advances from Victorian (285,195) (79,095) Government Transfer of Transit Cities Unit 3 (i) 37 - Machinery of government changes 3 (ii) - (6,282) Transfer of Shared Services Centre 3 (iii) - 6,217 Net cash flows from/(used in) financing activities (146,106) 54,652 Net decrease in cash and cash equivalents (53,073) (259,319) Cash and cash equivalents at the beginning 482,279 741,598 of the financial year Cash and cash equivalents at the end 21 (a) 429,206 482,279 of the financial year Financial instruments 22

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

107 Notes to the financial statements

NOTE PAGE

1 Summary of significant accounting policies 109 2 Departmental outputs 118 3 Restructuring of administrative arrangements 124 4 Summary of compliance with annual parliamentary and special appropriations 130 5 Other income 132 6 Payments to service providers and transport agencies 132 7 Supplies and services 133 8 Employee benefits 133 9 Assets written off/disposed of 134 10 Depreciation and amortisation 134 11 Resources and assets provided free of charge 135 12 Receivables 136 13 Inventories 136 14 Intangible assets 137 15 Property, plant and equipment 138 16 Payables 142 17 Loans and advances from Victorian Government 142 18 Interest bearing liabilities 143 19 Provisions 144 20 Equity and movements in equity 146 21 Cash flow information 147 22 Financial instruments 149 23 Commitments for expenditure 154 24 Contingent assets 156 25 Contingent liabilities 157 26 Superannuation 158 27 Major Projects Victoria 159 28 Administered items 160 29 Annotated receipts agreements 165 30 Trust account balances 165 31 Responsible persons 166 32 Remuneration of executives 167 33 Remuneration of auditors 168 34 Significant events 169

108 Department of Transport Annual Report 2007-08 Note 1. Summary of significant accounting policies

(a) Statement of compliance Accounting policies are selected Secretary to the Department of and applied in a manner which Transport as a body corporate The financial report is a general ensures that the resulting financial In accordance with approval received purpose financial report which information satisfies the concepts under the Financial Management has been prepared on an accrual of relevance and reliability, thereby Act 1994, the department’s annual basis in accordance with the reflecting the substance of the financial report incorporates the Financial Management Act 1994, underlying transactions or other ‘Secretary to the Department of applicable Australian accounting events reported. standards (AAS), which includes the Transport’ as a body corporate Australian accounting standards The accounting policies set out below created under the Project issued by the Australian Accounting have been applied in preparing the Development and Construction Standards Board (AASB), AAS 29 financial report for the year ended Management Act 1994. The body Financial reporting by government 30 June 2008 and the comparative corporate activities include the departments, interpretations and information for the year ended 30 functions performed by Major Projects other mandatory professional June 2007. Victoria. All activities are reflected requirements. as controlled transactions except (c) Reporting entity project development and construction The financial report also complies management activities for sponsor with relevant Financial Reporting The financial report covers the agencies, and where sales and Directions (FRDs) issued by the Department of Transport as an subsequent proceeds are received, Department of Treasury and Finance, individual reporting entity. The in which case they are reflected as and relevant Standing Directions department is a government administered transactions (refer (SD) authorised by the Minister for department of the State of Victoria, Note 28). Finance. established pursuant to an order made by the Premier under the Director, Public Transport (b) Basis of preparation Administrative Arrangements Act 1983. Safety Victoria Its principal address is : The financial report has been The office of the Director, Public prepared based on a historical cost Department of Transport Transport Safety Victoria (PTSV), basis, except for the revaluation was established by an amendment 121 Exhibition Street of certain non-current assets and to section 9T of the Transport Act Melbourne VIC 3000 financial instruments. Cost is based 1983 and commenced operating on 1 August 2006. The director on the fair value of the consideration The department is an administrative has a range of functions to enable given in exchange for the asset. agency acting on behalf of the Crown. regulation of the public transport In the application of AASB Standards, The financial report includes all the system. PTSV is responsible for the management is required to controlled activities of the Department safety accreditation of rail and bus make judgments, estimates and of Transport. organisations throughout Victoria. assumptions about the carrying The Director reports to the Minister values of assets and liabilities Director of Public Transport for Public Transport. that are not readily apparent from The Director of Public Transport (‘the other sources. The estimates and Chief Investigator, Transport and Director’) is an office established by associated assumptions are based Marine Safety Investigations section 8 of the Transport Act 1983 on historical experience and other (‘the Act’). The Director’s powers and The Chief Investigator, Transport factors that are believed to be functions are set out in section 9 of and Marine Safety Investigations reasonable under the circumstance. the Act and include responsibility is a statutory office established on Actual results may differ from these for the general administration of 1 August 2006 under part V of the estimates. the tram and train service contracts Transport Act 1983. The principal objective and function of the office The estimates and underlying provided by private operators under is to improve public transport and assumptions are reviewed on partnership arrangements. The marine safety by independently an ongoing basis. Revisions to Director is part of the department. investigating public transport and accounting estimates are recognised marine safety matters and to report in the period in which the estimate is the results of investigations to the revised if the revision affects only that relevant Ministers. period or in the period of the revision and future periods if the revision affects both current and future periods.

109 Note 1. Summary of significant accounting policies (continued)

Administered items (d) Objectives and funding to conditions which arose after the reporting date and may have a The department administers but The department’s objectives material impact on the results of does not control certain resources on include safety, efficient transport, subsequent years. behalf of the Crown. It is accountable and infrastructure as they are for the transactions involving those fundamental to the state’s economic (g) Goods and Services Tax (GST) administered resources, but does wellbeing. The department must not have the discretion to deploy the deliver high-value infrastructure Income, expenses and assets are resources for achievement of the and services to stimulate economic recognised net of the amount of department’s objectives. For these growth and Victoria’s competitiveness GST, unless the amount of GST is resources, the department acts only in accordance with the government’s not recoverable from the taxation on behalf of the Crown. Administered triple-bottom-line objectives. The authority. resources are accounted for using the department is predominantly funded Receivables and payables are stated accrual basis of accounting. by accrual-based parliamentary inclusive of the amount of GST appropriations for the provision of receivable or payable. The net amount Transactions and balances relating to outputs. these administered resources are not of GST recoverable from, or payable recognised as departmental revenues, (e) Outputs of the department to, the taxation authority is included expenses, assets or liabilities within with other receivables or payables the body of the financial statements, Information about the department’s in the balance sheet. Where the GST but are disclosed in Note 28. Except output activities, and the expenses, is not recoverable from the taxation as otherwise disclosed, administered income, assets and liabilities which authority, it is recognised as part of items are accounted for on the same are reliably attributable to those the cost of acquisition of the asset or basis and using the same accounting output activities, is set out in the as part of the expense. policies as for departmental items. output activities schedule (refer Note 2). Information about expenses, Cash flows are presented on a Specific financial disclosures related income, assets and liabilities gross basis. The GST components to administered items can be found in administered by the department of cash flows arising from investing Note 28. are provided in the schedule of or financing activities which are administered expenses and income recoverable from, or payable to the Other administered activities on and the schedule of administered taxation authority, are presented as behalf of parties external to the assets and liabilities (refer Note 28). operating cash flow. Victorian Government (f) Events after reporting date (h) Income recognition The department has responsibility for transactions and balances relating Assets, liabilities, income or expenses Income received by the department is to administered funds on behalf of arise from past transactions or other generally required to be paid into the third parties external to the Victorian past events. Where the transactions consolidated fund. Government. Revenues, other income, result from an agreement between expenses, assets and liabilities the department and other parties, Income becomes controlled and is administered on behalf of third parties the transactions are only recognised recognised by the department when it are not recognised in these financial when the agreement is irrevocable at is appropriated from the consolidated statements as they are administered or before balance date. Adjustments fund by the Victorian Parliament on a fiduciary and custodial basis, are made to amounts recognised in and applied to the purposes defined and therefore not controlled by the the financial statements for events under the relevant Appropriations department. These transactions and which occur after the reporting date Act. Additionally, the department balances are reported in Note 28. and before the date the statements is permitted under section 29 of are authorised for issue, where the Financial Management Act 1994 those events provide information to have certain revenue annotated about conditions which existed at to the annual appropriation. The the reporting date. Note disclosure revenue which forms part of a is made about events which occur section 29 agreement is recognised between the balance date and the by the department and the receipts date the statements are authorised paid into the consolidated fund are for issue, where the events relate disclosed as an administered item

110 Department of Transport Annual Report 2007-08 (refer Note 29). At the point of revenue Other revenue Administered Income recognition, section 29 provides for Amounts disclosed as revenue are, Commonwealth grants an equivalent amount to be added to where applicable, net of returns, the annual appropriation. Examples Grants payable by the Commonwealth allowances and duties and taxes. All of receipts which can form part of a Government are recognised as amounts of revenue over which the section 29 agreement are receipts income when the department gains department does not have control are from Commonwealth specific purpose control of the underlying assets. disclosed as administered income grants. Where such grants are payable in the schedule of administered into the consolidated fund, they are income and expenses (refer Note 28). Output appropriations reported as administered income. For Revenue is recognised for each of reciprocal grants, the department Revenue from the outputs the the department’s major activities as is deemed to have assumed control department provides to government follows: is recognised when those outputs when the performance has occurred have been delivered and the relevant Revenue from the provision under the grant. For non-reciprocal Minister has certified the delivery of services grants, the department is deemed to of those outputs in accordance with have assumed control when the grant Revenue from the provision of specified performance criteria. is received or receivable. Conditional services is recognised by reference grants may be reciprocal or non- Special appropriations to the stage of completion of the reciprocal depending on the terms of contract. The revenue is recognised the grant. Commonwealth grants are Under section 213A(4) of the when: Transport Act 1983, revenue related to disclosed as income in the schedule administrative costs associated with »» the amount of the revenue, stage of of administered items (refer Note 28). completion and transaction costs ticket infringements is recognised Fines and fees when the amount is appropriated for incurred can be reliably measured that purpose is due and payable by the »» it is probable that the economic The department collects fines and department. benefits associated with the fees on behalf of the Crown and does not gain control over assets arising Assets and resources received free of transaction will flow to the department. from these items. Consequently, the charge or for nominal consideration amounts of fines and fees are not Contributions of resources received The stage of completion is measured recognised but disclosed as revenues free of charge or for nominal by reference to labour hours incurred in the schedule of administered consideration are recognised at their to date as a percentage of estimated revenues and expenses (refer fair value when the transferee obtains total labour hours for each contract. Note 28). control over them, irrespective of whether restrictions or conditions Rental revenue (i) Expenses are imposed over the use of the Rental income from the leasing of Grants and other payments contributions, unless received from investment properties is recognised Grants and other payments to third another government department on a straight-line basis over the lease parties are recognised as an expense or agency as a consequence of term. in the reporting period in which they a restructuring of administrative are paid or payable. They include arrangements. In which case, such Interest revenue transactions such as grants, subsidies transfer will be recognised at carrying Interest revenue includes interest and other transfer payments to other value. Contributions in the form of received on bank term deposits, agencies, for example, VicRoads. services are only recognised when a interest from investments and other fair value can be reliably determined interest received. Interest revenue is Employee benefits and the services would have been recognised on a time proportionate Employee benefits expenses include purchased if not donated. basis that takes into account the all costs related to employment effective yield on a financial asset. including wages and salaries, leave entitlements, redundancy payments and superannuation contributions. These are recognised when incurred, except for contributions in respect of defined benefit plans.

111 Note 1. Summary of significant accounting policies (continued)

Superannuation for use, that is, when it is in the Impairment of assets location and condition necessary for The amount charged to the operating Goodwill and intangible assets with it to be capable of operating in the statement in respect of defined indefinite useful lives and intangible manner intended by management. benefit superannuation plans assets not yet available for use are The amortisation method and period represent the contributions made by tested annually for impairment. All for an intangible asset with a finite the department to the superannuation other assets are assessed annually useful life are reviewed at least at the plan in respect to the current services for indications of impairment, except end of each annual reporting period. of existing staff of the department. for cash and cash equivalents, In addition, an assessment is made Superannuation contributions are receivables, inventories and at each reporting date to determine made to the plans based on the investment properties. whether there are indicators that an relevant rules of each plan. intangible asset is impaired. If so, Where there is an indication of The Department of Treasury and the assets are tested as to whether impairment, the assets concerned Finance centrally recognises the their carrying value exceeds their are tested as to whether their defined benefit liability or surplus of recoverable amount. carrying value exceeds their possible most Victorian government employees recoverable amount. Where an asset’s Intangible assets with indefinite useful in such funds. carrying value exceeds its recoverable lives are not amortised, but are tested amount, the difference is written for impairment annually or whenever The amount charged to the operating off by a charge to the operating there is an indication that the asset statement in respect of defined statement except to the extent that may be impaired. The useful lives of benefit superannuation plans the write-down can be debited to an intangible assets that are not being represents the accrual of benefits asset revaluation reserve amount amortised are reviewed each period during the reporting period. Note 26 applicable to that class of asset. provides further details. to determine whether events and circumstances continue to support an It is deemed that, in the event of the Depreciation indefinite useful life assessment for loss of an asset, the future economic that asset. Depreciation is provided on property, benefits arising from the use of plant and equipment, including Resources provided free of charge or the asset will be replaced unless a freehold buildings but excluding for nominal consideration specific decision to the contrary has land. Depreciation is generally been made. The recoverable amount calculated on a straight-line basis Resources provided free of charge for most assets is measured at the so as to write off the net cost or or for nominal consideration are higher of depreciated replacement other revalued amount of each asset recognised at their fair value. cost and fair value less costs to sell. over its expected useful life to its Capital asset charge Supplies and services estimated residual value. Leasehold Capital asset charge represents the improvements are depreciated over Supplies and services generally opportunity cost of capital invested the period of the lease or estimated represent cost of goods sold and the in the non-current physical assets useful life, whichever is the shorter, day-to-day running costs, including used in the provision of outputs. In using the straight-line method. maintenance costs, incurred in the accordance with the policy of the The estimated useful lives, residual normal operations of the department. Department of Treasury and Finance, values and depreciation methods are These items are recognised as an the charge is calculated on the reviewed at the end of each reporting expense in the reporting period in budgeted carrying amount of non- period. Note 15 provides details on the which they are incurred. The carrying current physical assets. estimated useful lives that are used amount of any inventories held in the calculation of depreciation on Finance costs for distribution is expensed when property, plant and equipment. distributed. Finance costs are recognised as Amortisation expenses in the period in which they (j) Assets Intangible assets with finite useful are incurred and include finance lease All assets, including Crown land, lives are amortised on a systematic charges. controlled by the department are (typically straight-line) basis over reported in the balance sheet and the asset’s useful life. Amortisation comprise of the following: begins when the asset is available

112 Department of Transport Annual Report 2007-08 Cash and cash equivalents acquired to do, but no longer matches Intangible assets existing technologies. Functional Cash and cash equivalents comprise Intangible assets represent obsolescence occurs when an item cash on hand and cash at bank, identifiable non-monetary assets no longer functions the way it did deposits at call and highly liquid without physical substance. when it was first acquired. All other investments with an original maturity inventories, including land held for of three months or less, which are Intangible assets are initially sale, are measured at the lower of readily convertible to known amounts recognised at cost. Subsequently, cost and net realisable value. of cash and are subject to insignificant intangible assets with finite useful lives are carried at cost less risk of changes in value. Cost is assigned to land for sale accumulated amortisation and (undeveloped, under development and Receivables accumulated impairment losses. developed) and to other high value, Costs incurred subsequent to Receivables consist predominantly low volume inventory items on a initial acquisition are capitalised of debtors in relation to goods specific identification of cost basis. when it is expected that additional and services, accrued investment future economic benefits will income and input tax credits that Cost for all other inventory is flow to the department. are recoverable from the Goods and measured on the basis of weighted average cost. Services Tax. Research and development costs Receivables are recognised initially at Inventories acquired for no cost or Expenditure on research activities fair value and subsequently measured nominal considerations are measured is recognised as an expense in the at amortised cost, using the effective at current replacement cost at the period in which it is incurred. An interest rate method, less any date of acquisition. internally-generated intangible asset accumulated impairment. arising from development (or from Investment properties the development phase of an internal Settlement of receivables is required Investment properties represent project) is recognised where all of the within 30 days from invoice date. properties held to earn rentals or following are demonstrated: for capital appreciation or both. A provision for doubtful receivables is »» the technical feasibility of Investment properties exclude made when there is objective evidence completing the intangible asset so properties held to meet service that the debts will not be collected. that it will be available for use or delivery objectives of the State of Bad debts are written off when sale Victoria. identified. »» an intention to complete the Investment properties are initially Inventories intangible asset and use or sell it recognised at cost. Costs incurred Inventories include goods and other subsequent to initial acquisition »» the ability to use or sell the property held either for sale or for are capitalised when it is probable intangible asset distribution at no or nominal cost that future economic benefits in »» the intangible asset will generate in the ordinary course of business excess of the originally assessed probable future economic benefits operations. It includes land held for performance of the asset will flow sale and excludes depreciable assets. to the department. Subsequent to »» the availability of adequate initial recognition at cost, investment technical, financial and other Inventories held for distribution are properties are revalued to fair resources to complete the measured at the lower of cost and value with changes in the fair value development and to use or sell current replacement cost. recognised as income or expense the intangible asset in the period that they arise. The Cost is adjusted for any loss of »» the ability to measure reliably properties are not depreciated. service potential. The basis used in the expenditure attributable to the intangible asset during its assessing loss of service potential Rental income from the leasing of development. for inventories held for distribution investment properties is recognised in include current replacement cost and the operating statement on a straight- Where no internally-generated technical or functional obsolescence. line basis over the lease term. intangible asset can be recognised, Technical obsolescence occurs when development expenditure is an item still functions for some recognised as an expense in the or all of the tasks it was originally period as incurred.

113 Note 1. Summary of significant accounting policies (continued)

Intangible assets are measured at Revaluation reserves are normally reduction of rental expense on a cost less accumulated amortisation transferred to accumulated surplus straight-line basis, except where and impairment, and are amortised on de-recognition of the relevant asset. another systematic basis is more on a straight-line basis over their representative of the time pattern in useful lives of three to five years for Leases which economic benefits from the capitalised software development Leases of property, plant and leased asset are consumed. costs. equipment are classified as finance The cost of leasehold improvements leases whenever the terms of the Property, plant and equipment is capitalised as an asset and lease transfer substantially all the depreciated over the remaining term Land and infrastructure assets risks and rewards of ownership to the of the lease or the estimated useful are measured initially at cost, then lessee. All other leases are classified life of the improvements, whichever is subsequently at fair value less as operating leases. the shorter. Leasehold improvements accumulated depreciation and of office assets are amortised over impairment. Department as lessee 10 years. Finance leases are recognised as Plant, equipment and vehicles are assets and liabilities at amounts (k) Liabilities measured at cost less accumulated equal to the fair value of the lease depreciation and impairment. Payables property or, if lower, the present value Revaluations of non-current physical of the minimum lease payment, each Payables consist predominantly of assets determined at the inception of the creditors and other sundry liabilities. lease. The lease asset is depreciated Non-current physical assets over the shorter of the estimated Payables are initially recognised measured at fair value are revalued in useful life of the asset or the term of at fair value and subsequently accordance with Financial Reporting the lease. Minimum lease payments carried at amortised cost. Payables Direction 103C ‘Non-Current Physical are allocated between the principal represent liabilities for goods and Asset’. This revaluation process component of the lease liability, and services provided to the department normally occurs every five years, the interest expense calculated using prior to the end of the financial year based on the asset’s government the interest rate implicit in the lease, that are unpaid, and arise when the purpose classification and prescribed and charged directly to the operating department becomes obliged to make timeframe. Revaluation increments statement. future payments in respect of the or decrements arise from differences purchase of these goods and services. between carrying value and fair value. Operating lease payments, including any contingent rentals, are recognised Provisions Revaluation increments are credited as an expense in the operating directly to equity in the revaluation Provisions are recognised when the statement on a straight-line basis department has a present obligation, reserve, except that, to the extent that over the lease term, except where an increment reverses a revaluation the future sacrifice of economic another systematic basis is more benefits is probable, and the amount decrement in respect of that class representative of the time pattern of of asset previously recognised as of the provision can be measured the benefits derived from the use of reliably. an expense in the net result, the the leased asset. increment is recognised as income The amount recognised as a Lease incentives in determining the net result. provision is the best estimate of Revaluation decrements are All incentives for the agreement of a the consideration required to settle recognised as expenses in the net new or renewed operating lease shall the present obligation at reporting result, except, to the extent that a be recognised as an integral part of date, taking into account the risks credit balance exists in the revaluation the net consideration agreed for the and uncertainties surrounding reserve in respect of the same class use of the leased asset, irrespective of the obligation. Where a provision of assets, they are debited to the the incentive’s nature or form or the is measured using the cash flows revaluation reserve. timing of payments. estimated to settle the present obligation, its carrying amount is the Revaluation increases and decreases In the event that lease incentives present value of those cash flows. relating to individual assets are offset are received to enter into operating against one another within that class leases, such incentives are recognised but are not offset in respect of assets as a liability. The aggregate benefits in different classes. of incentives are recognised as a

114 Department of Transport Annual Report 2007-08 Where some or all of the economic Non-current liability – conditional LSL (l) Commitments benefits required to settle a provision Liability for conditional LSL is are expected to be recognised Commitments include operating, recognised for employees who have from a third party, the receivable is capital and other outsourcing been in less than seven years of recognised as an asset when it is commitments arising from non- continuous service. This is measured virtually certain that recovery will cancellable contractual or statutory at present value and disclosed as a be received and the amount of the sources and are disclosed at their non-current liability as it represents receivable can be measured reliably. nominal value (refer Note 23). an unconditional right to defer the Employee benefits settlement of the entitlement until the (m) Contingent assets and employee has completed the requisite cotingent liabilities (i) Annual leave years of service. Contingent assets and contingent Liabilities for annual leave expected (iii) Employee benefits on-costs liabilities are not recognised in the to be settled within 12 months of the balance sheet, but are disclosed reporting date are recognised in the Employee benefits on-costs include by way of a note to and where provision for employee benefits in payroll tax, workers compensation, quantifiable, are measured at nominal respect of employee services up to the superannuation, annual leave and LSL value (refer Notes 24 and 25). reporting date. They are measured accrued while on LSL taken in service at their nominal values and are are recognised and included with LSL (n) Equity classified as current liabilities. employee benefits. Additions to net assets which have Liabilities that are not expected to (iv) Termination benefits been designated as contribution be settled within 12 months and by owners are recognised as are recognised in the provision Termination benefits are payable contributed capital. Transfers that for employee benefits as current when employment is terminated are in the nature of contributions liabilities are measured at present before the normal retirement date, or distributions have also been value of the amounts expected to be or when an employee accepts designated and transfers of net paid when the liabilities are settled voluntary redundancy in exchange assets arising from administrative using the remuneration rate expected for these benefits. The department restructurings are treated as to apply at the time of settlement. recognises termination benefits distributions to or contributions by when it is demonstrably committed owners (refer Note 20). (ii) Long service leave (LSL) to either terminating the employment of current employees according to (o) Functional and Current liability – unconditional LSL a detailed formal plan without the presentation currency Liability for unconditional LSL is possibility of withdrawal or providing The functional currency of the recognised for employees who have termination benefits as a result of an government is the Australian dollar, been in seven or more years of offer made to encourage voluntary which has also been identified as continuous service. This is disclosed redundancy. Benefits falling due more the presentation currency of this as a current liability irrespective than 12 months after reporting date department. of whether the department is are discounted to present value. expected to settle the liability within (p) Rounding of amounts Onerous contracts 12 months because it will not have Amounts in the financial report have the unconditional right to defer the An onerous contract is considered been rounded to the nearest thousand settlement of the entitlement to exist where the department has a dollars, unless otherwise stated. should an employee take leave contract under which the unavoidable within 12 months. cost of meeting the contractual obligations exceeds the economic The component of the current LSL benefits estimated to be received. liability that is: Present obligations arising under »» not expected to be settled within onerous contracts are recognised 12 months is measured at present as a provision to the extent that value the present obligation exceeds the economic benefits estimated »» expected to be settled within 12 to be received. months is measured at nominal value.

115 Note 1. Summary of significant accounting policies (continued)

(q) New accounting standards and interpretations The following standards and interpretations have been issued and are to be adopted for future financial years where indicated: Applicable for annual reporting periods beginning Impact on departmental Standard / Interpretation Summary or ending on: financial statements

Interpretation 12 Service AASB approved an Australian Interpretation 12, Beginning 1 July 2008 The impact of any changes Concession Arrangements equivalent to IFRIC 12, applying to private sector that may be required cannot operators, but explicitly excludes accounting for be reliably estimated and is public sector grantors. not disclosed in the financial report.

AASB 2007–two Amendments arise from the release in February Beginning 1 July 2008 As above. amendments to Australian 2007 of Interpretation 12 Service Concession Accounting Standards Arrangements. arising from AASB Interpretation 12

Revised AASB 1004 AASB decided to relocate requirements on Beginning 1 July 2008 Impact expected to be Contributions contributions from AAS 27, AAS 29 and AAS 31, insignificant. substantively unamended, into AASB 1004 as part of its short-term review of AAS 27, AAS 29, and AAS 31.

AASB 1050 Administered As part of the short-term review of AAS 27, AAS Beginning 1July 2008 Impact expected to be Items 29, and AAS 31, AASB decided to relocate the insignificant. requirements for the disclosure of administered items from AAS 29, substantively unamended (with some exception as noted in Appendix A) into a new topic-based standard AASB 1050.

AASB 1051 Land Under The new pronouncement AASB 1051 Land Under Beginning 1 July 2008 Impact is being evaluated. Roads Roads provides the option to recognise or not recognise land under roads acquired before the end of the first reporting period ending on or after 31 December 2007. Land under roads acquired after 31 December 2007 should be accounted for following requirements of AASB 116 Property, Plant and Equipment. The state is yet to decide whether to change its policy. Until a conclusion is reached, the current default position is that land under roads will not be recognised.

AASB 1052 Disaggregated AASB decided to relocate requirements relating to Beginning 1 July 2008 Impact expected to be Disclosures reporting of disaggregated information from AAS insignificant. 27 and AAS 29 into AASB 1052, a new topic-based standard, as part of its short-term review of AAS 27, AAS 29 and AAS31.

116 Department of Transport Annual Report 2007-08 Applicable for annual reporting periods beginning Impact on departmental Standard / Interpretation Summary or ending on: financial statements

AASB 2007–09 An accompanying amendment standard to amend Beginning 1 July 2008 Impact expected to be amendments to Australian existing accounting standards as part of the insignificant. Accounting Standards short-term review of AAS 27, AAS 29 and AAS 31 in arising from the review of December 2007. AAS 27, AAS 29 and AAS 31

Revised Interpretation 1038 Editorial amendments to Interpretation 1038 due to Beginning 1 July 2008 Impact expected to be Contributions by Owners changes to AASB 1004. insignificant. made to Wholly-Owned Public Sector Entities

AASB 8 Operating Supersedes AASB 114 Segment Reporting. Beginning Not applicable. Segments 1 January 2009

AASB 2007–three An accompanying amending standard, also Beginning Impact expected to be amendments to Australian introduced consequential amendments into other 1 January 2009 insignificant. Accounting Standards standards. arising from AASB 8 [AASB 5, AASB 6, AASB 102, AASB 107, AASB 119, AASB 127, AASB 134, AASB 136, AASB 1023 and AASB 1038]

AASB 2007–six Option to expense borrowing cost related to a Beginning All amendments to Australian qualifying asset had been removed. Entities are now 1 January 2009 are currently still Accounting Standards required to capitalise borrowing costs relevant to actively pursuing an exemption arising from AASB 123 qualifying assets. for government from [AASB 1, AASB 101, capitalising borrowing costs. AASB 107, AASB 111, AASB 116, AASB 138 and Interpretations 1 and 12]

AASB 2007–eight Editorial amendments to Australian Accounting Beginning Impact expected to be amendments to Australian Standards to align with IFRS terminology. 1 January 2009 insignificant. Accounting Standards arising from AASB 101

117 Note 2. Departmental outputs

Output groups Public Transport Services Infrastructure Planning, Delivery and Management Public Safety and Security These outputs contribute to the achievement of the following key These outputs make a significant These outputs contribute to the government outcomes: contribution to the achievement of the achievement of the key government following key government outcomes: outcome of building friendly, confident »» growing and linking all of Victoria and safe communities. »» growing and linking all of Victoria »» sound financial management. This is done by delivering initiatives »» sound financial management This is done by overseeing the and regulatory activities that improve delivery of quality, sustainable and »» more quality jobs and thriving, safety in the public transport, road cost effective passenger train, tram innovative industries across Victoria and marine sectors and reduce and bus services to metropolitan the frequency, severity and cost of »» greater public participation and Melbourne and rural and regional accidents and incidents. It also covers more accountable government. Victoria, in partnership with operators activities aimed at maintaining the and in accordance with contractual These outputs do this by providing security of critical infrastructure arrangements. the government with strategic policy and the preparedness to respond and development guidance in relation to emergencies involving this These outputs aim to continue to integrated transport planning, infrastructure. improvement in the delivery of, and implementing targeted industry and access to, public transport services Reducing the state’s road toll is a high community programs and delivering and to increase the overall mobility of priority for the government. A key cost-effective, long-term investment Victorians. The outputs help to protect measure of success will be a 20 per in, and management of, public the environment by increasing public cent reduction in serious injuries and infrastructure and major government transport patronage, thereby reducing deaths related to road crashes. Key projects in Victoria. Implementation the reliance on private motor vehicles. departmental activities to achieve of the government’s Meeting Our The government works in partnership this outcome include continuing Transport Challenges: Connecting with operators to achieve these output to implement “arrive alive!” road Victorian Communities is reflected in aims. Contracts with operators are safety initiatives to change road user many of the projects and milestones managed to ensure that the services behaviour, and improving the safety of reported in these outputs. provided meet contractually agreed road infrastructure through initiatives standards and that the committed The government is committed to such as the Safer Road Infrastructure investment levels for rolling stock building better, more accessible Program. and buses are delivered. transport links for the state. This Similar regulatory frameworks and includes improving the integration, These outputs also include the initiatives are in place to improve across government, of transport provision of school bus services and safety on public transport, and on the and land-use planning, increasing managing the Multi Purpose Taxi state’s waterways relating to both the use of public transport and Program, which provides subsidised commercial and private recreational strengthening the connections taxi services for people unable to use vessels. The independent Office of between our ports, industry and other forms of public transport. the Chief Investigator Transport agricultural centres. These outputs and Marine Safety Investigations, deliver a combination of strategic road will enhance the safety programs and rail infrastructure improvements already in place. Security of critical to manage congestion and improve infrastructure is also a high priority. the movement of people and goods

118 Department of Transport Annual Report 2007-08 throughout Victoria. They also Departmental outcomes encompass infrastructure projects that will extend and increase capacity 1. Safety and security on the metropolitan train network; 2. Integrated policy, planning and improve control and communications communication across the metropolitan train network; reopen country passenger 3. Accessible, reliable and connected rail services; improve strategic transport services and traffic arterial road links; and establish a management major tollway linking the city’s south- eastern suburbs. 4. Rural and regional transport and development Within the Public Construction and Land Development output, the 5. Project development, delivery and department assesses the feasibility asset management of infrastructure development options and coordinates the delivery of a 6. A more productive state variety of infrastructure projects. 7. Organisational capability These are in addition to a large number of major construction Governmental goals projects that are funded through other government departments 1. Growing and linking all of Victoria and which are delivered by Major 2. Sound financial management Projects Victoria as a service to the host departments and agencies. The 3. More quality jobs and thriving, latter projects are not reported in the innovative industries across department’s output statements. Victoria

4. Protecting the environment for future generations

5. Efficient use of natural resources

6. Building friendly, confident and safe communities

7. A fairer society that reduces disadvantage and respects diversity

8. High-quality education and training for lifelong learning

9. High-quality, accessible health and community services

119 Note 2. Departmental outputs (continued)

Output groups schedule – controlled operating statement for the year ended 30 June 2008

ICT Policy, Infrastructure, Public Safety Public Transport Programs and Planning, Delivery Total Output Other – Non- and Security Services Management (i) and Management (ii) Groups Attributable (iii) Total DOT 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

INCOME Output appropriations 122,030 112,344 2,499,586 2,293,797 - 18,450 1,372,343 1,280,747 3,993,959 3,705,338 - - 3,993,959 3,705,338 Special appropriations - - 1,767 1,700 - - - - 1,767 1,700 - - 1,767 1,700 Resources and assets received free of charge 6 4 6,895 36 - 32 2,010 124 8,911 196 - - 8,911 196 Other income 8,315 6,990 266,522 246,025 - - 51,327 31,617 326,164 284,632 - 19,080 326,164 303,712 Total income 130,351 119,338 2,774,770 2,541,558 - 18,482 1,425,680 1,312,488 4,330,801 3,991,866 - 19,080 4,330,801 4,010,946

EXPENSES FROM ORDINARY ACTIVITIES Payments to service providers and transport agencies 84,977 73,599 2,441,032 2,336,845 - 4,297 1,275,945 1,582,948 3,801,954 3,997,689 - 13,083 3,801,954 4,010,772 Supplies and services 27,162 22,155 88,304 106,347 - 8,249 44,487 38,455 159,953 175,206 - - 159,953 175,206 Employee benefits 17,073 15,737 37,570 32,355 - 5,134 38,432 35,253 93,075 88,479 - 2,335 93,075 90,814 Assets written off/disposed of 295 182 840 476 - 8 36,816 22,923 37,951 23,589 - 160 37,951 23,749 Capital asset charge 181 192 19,626 16,399 - 50 1,196 1,658 21,003 18,299 - 196 21,003 18,495 Depreciation and amortisation 994 1,162 4,913 15,225 - 752 1,378 1,755 7,285 18,894 - 2,141 7,285 21,035 Resources and assets provided free of charge 6 7 79 31 - 251 4,087 648 4,172 937 - - 4,172 937 Total expenses 130,688 113,033 2,592,364 2,507,678 - 18,742 1,402,341 1,683,641 4,125,393 4,323,093 - 17,916 4,125,393 4,341,008 Net result for the period (337) 6,305 182,406 33,880 - (260) 23,339 (371,153) 205,408 (331,227) - 1,164 205,408 (330,062)

Output groups schedule – items of controlled income and expense recognised directly in equity for the year ended 30 June 2008

Revaluation increment - - 7,748 11,777 - - 55,404 7,978 63,152 19,755 - - 63,152 19,755 Total recognised for the period - - 7,748 11,777 - - 55,404 7,978 63,152 19,755 - - 63,152 19,755

(i) In the restructure of administrative arrangements effective 1 January 2007 this output group was transferred out of DOT (see also Note 3). (ii) In the restructure of administrative arrangements effective 1 January 2007 the ‘Energy Policy Services’ output, which is within this output group, was transferred out of DOT (see also Note 3). (iii) These amounts relate to activities of the Shared Service Centre undertaken for departments other than DOT. In the restructure of administrative arrangements effective 1 January 2007 the Shared Service Centre transferred from DOT to the Department of Treasury and Finance.

120 Department of Transport Annual Report 2007-08 Output groups schedule – controlled operating statement for the year ended 30 June 2008

ICT Policy, Infrastructure, Public Safety Public Transport Programs and Planning, Delivery Total Output Other – Non- and Security Services Management (i) and Management (ii) Groups Attributable (iii) Total DOT 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

INCOME Output appropriations 122,030 112,344 2,499,586 2,293,797 - 18,450 1,372,343 1,280,747 3,993,959 3,705,338 - - 3,993,959 3,705,338 Special appropriations - - 1,767 1,700 - - - - 1,767 1,700 - - 1,767 1,700 Resources and assets received free of charge 6 4 6,895 36 - 32 2,010 124 8,911 196 - - 8,911 196 Other income 8,315 6,990 266,522 246,025 - - 51,327 31,617 326,164 284,632 - 19,080 326,164 303,712 Total income 130,351 119,338 2,774,770 2,541,558 - 18,482 1,425,680 1,312,488 4,330,801 3,991,866 - 19,080 4,330,801 4,010,946

EXPENSES FROM ORDINARY ACTIVITIES Payments to service providers and transport agencies 84,977 73,599 2,441,032 2,336,845 - 4,297 1,275,945 1,582,948 3,801,954 3,997,689 - 13,083 3,801,954 4,010,772 Supplies and services 27,162 22,155 88,304 106,347 - 8,249 44,487 38,455 159,953 175,206 - - 159,953 175,206 Employee benefits 17,073 15,737 37,570 32,355 - 5,134 38,432 35,253 93,075 88,479 - 2,335 93,075 90,814 Assets written off/disposed of 295 182 840 476 - 8 36,816 22,923 37,951 23,589 - 160 37,951 23,749 Capital asset charge 181 192 19,626 16,399 - 50 1,196 1,658 21,003 18,299 - 196 21,003 18,495 Depreciation and amortisation 994 1,162 4,913 15,225 - 752 1,378 1,755 7,285 18,894 - 2,141 7,285 21,035 Resources and assets provided free of charge 6 7 79 31 - 251 4,087 648 4,172 937 - - 4,172 937 Total expenses 130,688 113,033 2,592,364 2,507,678 - 18,742 1,402,341 1,683,641 4,125,393 4,323,093 - 17,916 4,125,393 4,341,008 Net result for the period (337) 6,305 182,406 33,880 - (260) 23,339 (371,153) 205,408 (331,227) - 1,164 205,408 (330,062)

Output groups schedule – items of controlled income and expense recognised directly in equity for the year ended 30 June 2008

Revaluation increment - - 7,748 11,777 - - 55,404 7,978 63,152 19,755 - - 63,152 19,755 Total recognised for the period - - 7,748 11,777 - - 55,404 7,978 63,152 19,755 - - 63,152 19,755

(i) In the restructure of administrative arrangements effective 1 January 2007 this output group was transferred out of DOT (see also Note 3). (ii) In the restructure of administrative arrangements effective 1 January 2007 the ‘Energy Policy Services’ output, which is within this output group, was transferred out of DOT (see also Note 3). (iii) These amounts relate to activities of the Shared Service Centre undertaken for departments other than DOT. In the restructure of administrative arrangements effective 1 January 2007 the Shared Service Centre transferred from DOT to the Department of Treasury and Finance.

121 Note 2. Departmental outputs (continued)

Output groups schedule – controlled balance sheet for the year ended 30 June 2008

ICT Policy, Infrastructure, Public Safety Public Transport Programs and Planning, Delivery Total Output Other – Non- and Security Services Management (i) and Management (ii) Groups Attributable (iii) Total DOT 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

CURRENT ASSETS Cash and cash equivalents 61 368 317,323 321,517 - - 111,822 160,394 429,206 482,279 - - 429,206 482,279 Receivables 18,664 15,667 435,746 357,478 - - 158,483 131,276 612,893 504,421 - - 612,893 504,421 Prepayments 150 160 1,618 2,069 - - 743 609 2,511 2,838 - - 2,511 2,838 Inventories ------64,387 - 64,387 - - - 64,387 - Intangible assets ------955 8,900 955 8,900 - - 955 8,900 Total current assets 18,875 16,195 754,687 681,064 - - 336,390 301,179 1,109,952 998,438 - - 1,109,952 998,438

NON-CURRENT ASSETS Receivables 407 371 1,166 963 - - 1,129 1,099 2,702 2,433 - - 2,702 2,433 Property, plant and equipment 7,709 3,866 172,781 107,300 - - 279,587 210,981 460,077 322,147 - - 460,077 322,147 Intangible assets 7,241 5,659 11,888 11,186 - - 49,790 48,306 68,919 65,151 - - 68,919 65,151 Total non-current assets 15,357 9,896 185,835 119,449 - - 330,506 260,386 531,698 389,731 - - 531,698 389,731 Total assets 34,232 26,091 940,522 800,513 - - 666,896 561,565 1,641,650 1,388,169 - - 1,641,650 1,388,169

CURRENT LIABILITIES Payables 8,682 8,904 338,686 241,754 - - 274,893 294,240 622,261 544,898 - - 622,261 544,898 Loans and advances from Victorian Government 430 522 8,382 109,376 - - 153,485 114,761 162,297 224,659 - - 162,297 224,659 Interest bearing liabilities 493 277 516 401 - - 347 165 1,356 843 - - 1,356 843 Provisions 3,081 2,854 15,644 14,796 - - 6,256 6,271 24,981 23,921 - - 24,981 23,921 Total current liabilities 12,686 12,557 363,228 366,327 - - 434,981 415,437 810,895 794,321 - - 810,895 794,321

NON-CURRENT LIABILITIES Interest bearing liabilities 492 781 835 967 - - 391 375 1,718 2,123 - - 1,718 2,123 Provisions 437 406 199,944 189,397 - - 1,216 1,206 201,597 191,009 - - 201,597 191,009 Prepaid lease income ------1,778 - 1,778 - - - 1,778 Total non-current liabilities 929 1,187 200,779 190,364 - - 1,607 3,359 203,315 194,910 - - 203,315 194,910 Total liabilities 13,615 13,744 564,007 556,691 - - 436,588 418,796 1,014,210 989,231 - - 1,014,210 989,231

Net assets 20,617 12,347 376,515 243,822 - - 230,308 142,769 627,440 398,938 - - 627,440 398,938

(i) In the restructure of administrative arrangements effective 1 January 2007 this output group was transferred out of DOT (see also Note 3). (ii) In the restructure of administrative arrangements effective 1 January 2007 the ‘Energy Policy Services’ output, which is within this output group, was transferred out of DOT (see also Note 3). (iii) These amounts relate to activities of the Shared Service Centre undertaken for departments other than DOT. In the restructure of administrative arrangements effective 1 January 2007 the Shared Service Centre transferred from DOT to the Department of Treasury and Finance.

122 Department of Transport Annual Report 2007-08 Output groups schedule – controlled balance sheet for the year ended 30 June 2008

ICT Policy, Infrastructure, Public Safety Public Transport Programs and Planning, Delivery Total Output Other – Non- and Security Services Management (i) and Management (ii) Groups Attributable (iii) Total DOT 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

CURRENT ASSETS Cash and cash equivalents 61 368 317,323 321,517 - - 111,822 160,394 429,206 482,279 - - 429,206 482,279 Receivables 18,664 15,667 435,746 357,478 - - 158,483 131,276 612,893 504,421 - - 612,893 504,421 Prepayments 150 160 1,618 2,069 - - 743 609 2,511 2,838 - - 2,511 2,838 Inventories ------64,387 - 64,387 - - - 64,387 - Intangible assets ------955 8,900 955 8,900 - - 955 8,900 Total current assets 18,875 16,195 754,687 681,064 - - 336,390 301,179 1,109,952 998,438 - - 1,109,952 998,438

NON-CURRENT ASSETS Receivables 407 371 1,166 963 - - 1,129 1,099 2,702 2,433 - - 2,702 2,433 Property, plant and equipment 7,709 3,866 172,781 107,300 - - 279,587 210,981 460,077 322,147 - - 460,077 322,147 Intangible assets 7,241 5,659 11,888 11,186 - - 49,790 48,306 68,919 65,151 - - 68,919 65,151 Total non-current assets 15,357 9,896 185,835 119,449 - - 330,506 260,386 531,698 389,731 - - 531,698 389,731 Total assets 34,232 26,091 940,522 800,513 - - 666,896 561,565 1,641,650 1,388,169 - - 1,641,650 1,388,169

CURRENT LIABILITIES Payables 8,682 8,904 338,686 241,754 - - 274,893 294,240 622,261 544,898 - - 622,261 544,898 Loans and advances from Victorian Government 430 522 8,382 109,376 - - 153,485 114,761 162,297 224,659 - - 162,297 224,659 Interest bearing liabilities 493 277 516 401 - - 347 165 1,356 843 - - 1,356 843 Provisions 3,081 2,854 15,644 14,796 - - 6,256 6,271 24,981 23,921 - - 24,981 23,921 Total current liabilities 12,686 12,557 363,228 366,327 - - 434,981 415,437 810,895 794,321 - - 810,895 794,321

NON-CURRENT LIABILITIES Interest bearing liabilities 492 781 835 967 - - 391 375 1,718 2,123 - - 1,718 2,123 Provisions 437 406 199,944 189,397 - - 1,216 1,206 201,597 191,009 - - 201,597 191,009 Prepaid lease income ------1,778 - 1,778 - - - 1,778 Total non-current liabilities 929 1,187 200,779 190,364 - - 1,607 3,359 203,315 194,910 - - 203,315 194,910 Total liabilities 13,615 13,744 564,007 556,691 - - 436,588 418,796 1,014,210 989,231 - - 1,014,210 989,231

Net assets 20,617 12,347 376,515 243,822 - - 230,308 142,769 627,440 398,938 - - 627,440 398,938

(i) In the restructure of administrative arrangements effective 1 January 2007 this output group was transferred out of DOT (see also Note 3). (ii) In the restructure of administrative arrangements effective 1 January 2007 the ‘Energy Policy Services’ output, which is within this output group, was transferred out of DOT (see also Note 3). (iii) These amounts relate to activities of the Shared Service Centre undertaken for departments other than DOT. In the restructure of administrative arrangements effective 1 January 2007 the Shared Service Centre transferred from DOT to the Department of Treasury and Finance.

123 Note 3. Restructuring of administrative arrangements

(i) Machinery of government changes effective from 8 August 2007 In August 2007, the government issued an administrative order restructuring certain of its activities via machinery of government changes. This machinery of government restructure has affected the Department of Transport (formerly known as the Department of Infrastructure). The department relinquished the functions of the Victorian Urban Development Authority for which it was responsible to the Department of Planning and Community Development.

In respect of the activities relinquished, the following assets and liabilities were transferred.

2008 2007 $’000 $’000

ASSETS Funds in State Administration Unit 37 -

LIABILITIES Annual leave payable within 12 months (23) - Long service leave payable after 12 months (14) - Net assets transferred - -

124 Department of Transport Annual Report 2007-08 (ii) Machinery of government changes effective from 1 January 2007 In December 2006, the government issued an administrative order restructuring certain of its activities via machinery of government changes. This machinery of government restructure has affected the Department of Transport (formally known as the Department of Infrastructure). The department relinquished the Energy Policy Services, ICT Policy and Programs activities.

The net assets transfer was treated as a contribution of capital via the Crown in compliance with the accounting requirements of Urgent Issues Group Interpretation 1038 Contribution by Owners Made to Wholly-Owned Public Sector Entities and financial reporting Direction 2A Contributions by Owners (refer Note 1(n)).

In respect of the activities relinquished, the following assets and liabilities were transferred.

Movements out of the department (a) Output – Energy Policy Services Transfer of assets and liabilities to Department of Primary Industries.

2008 2007 $’000 $’000

ASSETS Funds in State Administration Unit - 494 Funds in State Administration Unit (Trust Fund) - 526 Buildings leasehold improvements - 17 Plant and equipment at cost - 43 Motor vehicles under VicFleet lease - 105

LIABILITIES VicFleet motor vehicle lease liability current - (18) Annual leave payable within 12 months - (160) Long service leave payable within 12 months - (306) VicFleet motor vehicle lease liability non-current - (88) Long service leave payable after 12 months - (28) Net capital contribution to the Crown - 585

125 Note 3. Restructuring of administrative arrangements (continued)

(b) Output – ICT Policy and Programs Transfer of assets and liabilities to Department of Treasury and Finance.

2008 2007 $’000 $’000

ASSETS Funds in State Administration Unit - 884 Buildings leasehold improvements - 2 Plant and equipment at cost - 498 Motor vehicles under VicFleet lease - 61 Software under development - 12,004

LIABILITIES VicFleet motor vehicle lease liability current - (10) Annual leave payable within 12 months - (284) Long service leave payable within 12 months - (499) VicFleet motor vehicle lease liability non-current - (51) Long service leave payable after 12 months - (101) Net capital contribution to the Crown - 12,504

(c) Output – ICT Policy and Programs Transfer of assets and liabilities to Department of Planning and Community Development (formerly Department for Victorian Communities).

2008 2007 $’000 $’000

ASSETS Funds in State Administration Unit - 192 Plant and equipment at cost - 41 Software under development - 45 Intangible assets - 640

LIABILITIES Annual leave payable within 12 months - (72) Long service leave payable within 12 months - (100) Long service leave payable after 12 months - (20) Net capital contribution to the Crown - 726

126 Department of Transport Annual Report 2007-08 (d) Output – ICT Policy and Programs Transfer of assets and liabilities to Department of Innovation, Industry and Regional Development.

2008 2007 $’000 $’000

ASSETS Funds in State Administration Unit - 1,325 Funds in State Administration Unit (Trust Fund) - 2,861 Buildings leasehold improvements - 106 Plant and equipment at cost - 112 Motor vehicles under VicFleet lease - 79

LIABILITIES VicFleet motor vehicle lease liability current - (14) Annual leave payable within 12 months - (316) Annual leave payable within 12 months (Trust Fund) - (10) Long service leave payable within 12 months - (892) VicFleet motor vehicle lease liability non-current - (66) Long service leave payable after 12 months - (117) Long service leave payable after 12 months (Trust Fund) - (3) Net capital contribution to the Crown - 3,065

127 Note 3. Restructuring of administrative arrangements (continued)

(iii) The administrative office ‘Office of Shared Services Centre’ (SSC) was transferred from the Department of Transport (formally known as the Department of Infrastructure) to be an administrative office of the Department of Treasury and Finance on 1 January 2007. This transfer was made by the Governor in Council under section 11 of the Public Administration Act 2004. In respect of the activities relinquished the following assets and liabilities were transferred: Movements out of the department 2008 2007 $’000 $’000

ASSETS Debtors relating to sales of services - 10,830 GST recoverable - 952 Receivables - 3,687 Prepayments - 1,619 Consumable stores – at cost - 37 Buildings leasehold improvements - 145 Plant and equipment at cost - 5,623 Motor vehicles under VicFleet lease - 55 Intangible assets - 510

LIABILITIES State Administration Unit (Trust Fund) - (6,217) Creditors - (634) Accrued salaries and wages payable within 12 months - (87) Accrued FBT payable - (3) Accrued GST payable - (631) Accrued expenses - (6,156) Unearned/prepaid income - (625) VicFleet motor vehicle lease liability current - (33) Annual leave payable within 12 months - (418) Long service leave payable within 12 months - (866) VicFleet motor vehicle lease liability non-current - (21) Long service leave payable after 12 months - (117) Net capital contribution to the Crown - 7,650

128 Department of Transport Annual Report 2007-08 (iv) Responsibility for the Commonwealth Games Village Project was transferred from the former Department for Victorian Communities (DVC) on 1 September 2006. In respect of the activities relinquished the following assets and liabilities were transferred: Movements into the department

Treatment of net assets received from DVC.

2008 2007 $’000 $’000

ASSETS Deferred expenditure - 78,155 Social housing - 22,949 Social demountables - 1,336 Environmental initiatives - 7,229 Land - 18,252

LIABILITIES Section 37 Advance - (56,956) Net capital contribution to the Crown - 70,965

129 Note 4. Summary of compliance with annual parliamentary and special 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 MANAGEMENT ACT Section 32 Payments Section 29 Section 30 Unused Section 35 Annual from Advance Appropriation of Transfer Between Appropriations Temporary Total Parliamentary Appropriations Appropriation to Treasurer Certain Receipts Appropriations (from prior years) Advances Authority Applied Variance (i) 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

CONTROLLED Provision for outputs 3,591,110 3,305,871 24,203 36,440 362,343 326,686 3,443 29,385 115,616 146,086 - - 4,096,715 3,844,468 3,993,959 3,705,338 102,756 139,130 Additions to net assets 659,857 459,648 - 33,018 77,943 - (3,443) (29,385) 180,249 179,564 21,099 25,927 935,705 668,772 724,353 469,729 211,352 199,043

ADMINISTERED Payments made on behalf of the state - 36,900 ------36,900 - 18,500 - 18,400 Total 4,250,967 3,802,419 24,203 69,458 440,286 326,686 - - 295,865 325,650 21,099 25,927 5,032,420 4,550,140 4,718,312 4,193,567 314,108 356,573

(i) The variance primarily relates to agreed changes in the scheduling of committed projects.

(b) Summary of compliance with special appropriations

APPROPRIATIONS AUTHORITY PURPOSE APPLIED 2008 2007 $’000 $’000 Section 213A (4) of the Transport Act 1983 Refund passenger transport companies the administrative costs associated with ticket 1,767 1,700 infringements. Section 10 of the Financial Management Act 1994 Capital contribution from the Commonwealth - 11,831 Government for the Dynon Port Rail Link Project.

130 Department of Transport Annual Report 2007-08 APPROPRIATION ACT FINANCIAL MANAGEMENT ACT Section 32 Payments Section 29 Section 30 Unused Section 35 Annual from Advance Appropriation of Transfer Between Appropriations Temporary Total Parliamentary Appropriations Appropriation to Treasurer Certain Receipts Appropriations (from prior years) Advances Authority Applied Variance (i) 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

CONTROLLED Provision for outputs 3,591,110 3,305,871 24,203 36,440 362,343 326,686 3,443 29,385 115,616 146,086 - - 4,096,715 3,844,468 3,993,959 3,705,338 102,756 139,130 Additions to net assets 659,857 459,648 - 33,018 77,943 - (3,443) (29,385) 180,249 179,564 21,099 25,927 935,705 668,772 724,353 469,729 211,352 199,043

ADMINISTERED Payments made on behalf of the state - 36,900 ------36,900 - 18,500 - 18,400 Total 4,250,967 3,802,419 24,203 69,458 440,286 326,686 - - 295,865 325,650 21,099 25,927 5,032,420 4,550,140 4,718,312 4,193,567 314,108 356,573

(i) The variance primarily relates to agreed changes in the scheduling of committed projects.

131 Note 5. Other income

2008 2007 $’000 $’000 Income from sale of transport services 155,765 134,633 Income from other Victorian government departments 133,656 162,168 and agencies Proceeds from sales at ‘KRS’ redevelopment* 23,136 - Interest income 4,784 3,934 Other income 8,823 2,977 Total other income 326,164 303,712

* KRS refers to the redevelopment of ‘Kew Residential Services’ formerly known as Kew Cottages. The state under the Project Development and Construction Management Act 1994, which is administered by Major Projects Victoria (MPV), being a division of this department, has appointed Kew Development Corporation Pty Ltd and Walker Group Holding Pty Ltd as developer. Under the development agreement MPV remains the proprietor of all lots and as such reports the proceeds from sales.

Note 6. Payments to service providers and transport agencies

2008 2007 $’000 $’000 Rail system operation and related services 925,344 932,470 Grants for capital asset charge 893,777 842,338 Total rail services 1,819,121 1,774,808 Road services 1,235,505 1,537,235 Bus services 639,149 583,821 Payments to other agencies 108,179 114,908 Total payments to service providers and transport agencies 3,801,954 4,010,772

132 Department of Transport Annual Report 2007-08 Note 7. Supplies and services

2008 2007 $’000 $’000 Multi Purpose Taxi Program 44,667 37,527 Administration and information technology 32,009 47,664 Grants for community and social benefits 22,740 27,141 Accommodation 18,893 10,848 Insurance, legal and internal audit fees 4,687 6,557 Finance costs 206 863 Other 36,751 44,606 Total supplies and services 159,953 175,206

Note 8. Employee benefits

2008 2007 $’000 $’000 Salaries and wages 70,030 67,401 Annual leave and long services leave expense 8,582 10,057 Superannuation (excluding salary sacrifice) 7,140 6,858 Other on-costs (fringe benefits tax, payroll tax 7,323 6,498 and workcover levy) Total employee benefits 93,075 90,814

133 Note 9. Assets written off/disposed of

2008 2007 Note $’000 $’000 Infrastructure 36 - Plant and equipment 47 176 Buildings leasehold 521 12 Leased vehicles 967 715 Previously capitalised project expenditure - 5 Total infrastructure, property, plant 15 1,571 908 and equipment Intangibles 14 9,019 22,725 Cost of land inventory sold* 27,361 116 Total assets written off/disposed of 37,951 23,749

* The land inventory sold in 2008 refers to the ‘Kew Residential Services’ formerly known as Kew Cottages. The state under the Project Development and Construction Management Act 1994, which is administered by Major Projects Victoria (MPV), being a division of this department, has appointed Kew Development Corporation Pty Ltd and Walker Group Holding Pty Ltd as developer. Under the development agreement MPV remains the proprietor of all lots and as such reports the cost of sales.

Note 10. Depreciation and amortisation

2008 2007 Note $’000 $’000

DEPRECIATION Buildings 15 298 601 Infrastructure assets 15 1,195 232 Plant and equipment 15 1,450 3,618 Total depreciation 2,943 4,451

AMORTISATION Leasehold improvements 15 1,316 3,490 Leased equipment 15 - 8,077 Leased vehicles 15 592 510 Intangible assets 14 2,434 4,507 Total amortisation 4,342 16,584 Total depreciation and amortisation 7,285 21,035

134 Department of Transport Annual Report 2007-08 Note 11. Resources and assets provided free of charge

2008 2007 $’000 $’000

Resources provided free of charge VicTrack 30 - Southern Cross Station Authority 28 - Victorian Auditor General’s Office 25 - Southern and Eastern Integrated Transport Authority 19 - Total resources provided free of charge 102 -

Assets provided free of charge Department of Human Services 3,922 - Department of Innovation, Industry and Regional Development 75 279 Transport Ticketing Authority 42 - Department of Justice 31 - VicTrack - 464 City of Melbourne - 144 Department of Primary Industries - 50 Total assets provided free of charge 4,070 937

Total resources and assets provided free of charge 4,172 937

135 Note 12. Receivables

2008 2007 $’000 $’000

CURRENT Amounts owing from Victorian Government(i) 440,705 407,130 Other receivables(ii) 172,188 97,291 Total current receivables 612,893 504,421

NON-CURRENT Amounts owing from Victorian Government(i) 2,702 2,433 Total non-current receivables 2,702 2,433

Total receivables 615,595 506,854

(i) The amounts recognised from Victorian Government represent funding for all commitments incurred through the appropriations and are drawn from the consolidated fund as the commitments fall due. (ii) The average credit period on sales of goods is 30 days. No interest is charged on receivables.

Ageing analysis of receivables Please refer to Note 22(c) for the ageing analysis of receivables.

Nature and extent of risk arising from receivables Please refer to Note 22(b) for the nature and extent of credit risk arising from receivables.

Note 13. Inventories

2008 2007 $’000 $’000

CURRENT Kew Residential Redevelopment Site(i) 64,387 - Total inventories 64,387 -

(i) Major Projects Victoria is a division of DOT is responsible for managing the Kew Residential Redevelopment Site project. The land for this project was transferred from the Department of Human Services to DOT for redevelopment and is held by DOT as inventory until it is sold. A fixed portion from each sale will be paid into the consolidated fund.

136 Department of Transport Annual Report 2007-08 Note 14. Intangible assets

2008 2007 Note $’000 $’000

CURRENT Deferred expenditure(i) 955 8,900 Total current intangible assets 955 8,900

NON-CURRENT Software 28,351 23,726 Less: accumulated amortisation (21,246) (18,811) Work in progress 15,347 13,705 Deferred expenditure(i) 46,467 46,532 Total non-current intangible assets 68,919 65,151

Total intangible assets 69,874 74,051

RECONCILIATION OF MOVEMENTS Carrying amount at 1 July 74,051 30,445 Additions 7,276 5,989 Disposals/write downs 9 (9,019) (22,725) Transfer from Department of Planning and 3 (iv) - 78,155 Community Development Transfer to property, plant and equipment - (107) Amortisation as at 30 June 10 (2,434) (4,507) Restructuring of administrative arrangements 3 (ii) (iii) - (13,199) Carrying amount at 30 June 69,874 74,051

(i) The Victorian Government contributed cash and land towards the 2006 Commonwealth Games Village site at Parkville Gardens, Melbourne. The deferred expenditure represents these contributions, which are expensed as the Victorian Government receives the proceeds from the sale of properties within the site.

137 Note 15. Property, plant and equipment

Classification by ‘Transportation and Communications’ purpose group – carrying amounts: 2008 2007 $’000 $’000

LAND AT FAIR VALUE At valuation 2008 207,665 - Land at acquisition - 55,643 At valuation 2007 - 58,975 At valuation 2006 - 893 At valuation 2005 - 47,252 Total land 207,665 162,763

BUILDINGS AT FAIR VALUE At valuation 2007 2,925 2,925 At valuation 2005 4,911 4,168 Less: accumulated depreciation (689) (391) Total buildings 7,147 6,702

INFRASTRUCTURE AT FAIR VALUE Infrastructure – at acquisition 32,458 31,897 Infrastructure – at independent valuation 2005 10,825 4,003 Less: accumulated depreciation (1,586) (351) Total infrastructure 41,697 35,549

PLANT AND EQUIPMENT AT COST Plant at cost 10,107 9,037 Less: accumulated depreciation (6,352) (5,681) Total plant and equipment 3,755 3,356

BUILDING LEASEHOLD AT COST Leasehold improvement office assets – at cost 30,468 18,520 Less: accumulated amortisation (3,788) (17,342) Total buildings leasehold 26,680 1,178

LEASED VEHICLES AT COST Vehicles – at cost 3,722 3,340 Less: accumulated amortisation (834) (648) Total leased vehicles 2,888 2,692

PROPERTY UNDER CONSTRUCTION AT COST Buildings - 37,393 Infrastructure 163,863 56,834 Building leasehold improvements 6,382 15,680 Total property under construction 170,245 109,907

Net carrying amount 460,077 322,147

138 Department of Transport Annual Report 2007-08 Valuations A managerial revaluation of the department’s land was conducted on 30 June 2008. This was conducted in accordance with Financial Reporting Direction (FRD) 103C.

This FRD states that such a revaluation must be considered using the Victorian Valuer General’s price indices and should be applied as a supplement to the normal programmed revaluation schedule.

If these indices indicate a cumulative movement in value of between 10% and 40% since the last scheduled revaluation, the department’s Chief Finance Officer has therefore approved a managerial revaluation using the indices.

Depreciation The following expected useful lives of assets, which are unchanged from 2006-07 are used in the calculation of depreciation:

Expected useful Asset category life (years) Buildings 55 Infrastructure assets Bridges and structures 90 to 115 Plant and equipment Furniture and fittings* 3 to 15 Computer equipment 3 Computer printers 4 Office machines 5 Buildings leasehold 10 Leased vehicles 3

* Includes artworks with an expected useful life of 100 years.

139 Note 15. Property, plant and equipment (continued)

Classification by ‘Transportation and communications’ purpose group – movements in carrying amounts.

RECONCILIATION Plant and Building Leased Leased Property under Land Buildings Infrastructure equipment leasehold equipment vehicles construction Total Note $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Carrying amount at 1 July 2006 133,965 6,934 3,871 9,982 4,091 8,076 2,782 49,511 219,212 Additions - - 1,030 3,554 902 1 1,463 49,902 56,852 Disposals/write offs 9 - - - (176) (12) - (715) (5) (908) Acquisitions through administrative restructures 3 (iv) 18,252 ------31,514 49,766 Relinquishments through administrative restructures 3 (iii) (ii) - - - (6,317) (270) - (300) - (6,887) Net revaluation increments/decrements 20 (b) 19,386 369 ------19,755 Depreciation/amortisation expense 10 - (601) (232) (3,618) (3,490) (8,077) (510) - (16,528) Assets received as contributed capital ------9,990 9,990 Assets provided as contributed capital (9,135) ------(9,135) Asset received free of charge - - 19 - - - 82 - 101 Assets provided free of charge 11 (464) - - (219) - - (110) (144) (937) Transfers to assets classified as held for sale 759 ------759 Transfers from intangibles - - - 107 - - - - 107 Transfers between classes - - 30,861 43 (43) - - (30,861) - Carrying amount at 30 June 2007/1 July 2008 162,763 6,702 35,549 3,356 1,178 - 2,692 109,907 322,147 Additions - 82 561 1,896 1,746 - 1,803 124,392 130,480 Disposals/write offs 9 - - (36) (47) (521) - (967) - (1,571) Acquisitions through administrative restructures 3 (iv) ------Relinquishments through administrative restructures 3 (iii) (ii) ------Net revaluation increments/decrements 20 (b) 63,154 (2) ------63,152 Depreciation/amortisation expense 10 - (298) (1,195) (1,450) (1,316) - (592) - (4,851) Assets received as contributed capital - 663 ------663 Assets provided as contributed capital (18,252) ------(38,461) (56,713) Asset received free of charge - - 6,818 - - - 100 - 6,918 Assets provided free of charge 11 ------(148) - (148) Transfers to assets classified as held for sale ------Transfers from intangibles ------Transfers between classes - - - - 25,593 - - (25,593) - Carrying amount at 1 July 2008 207,665 7,147 41,697 3,755 26,680 - 2,888 170,245 460,077

140 Department of Transport Annual Report 2007-08 Classification by ‘Transportation and communications’ purpose group – movements in carrying amounts.

RECONCILIATION Plant and Building Leased Leased Property under Land Buildings Infrastructure equipment leasehold equipment vehicles construction Total Note $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Carrying amount at 1 July 2006 133,965 6,934 3,871 9,982 4,091 8,076 2,782 49,511 219,212 Additions - - 1,030 3,554 902 1 1,463 49,902 56,852 Disposals/write offs 9 - - - (176) (12) - (715) (5) (908) Acquisitions through administrative restructures 3 (iv) 18,252 ------31,514 49,766 Relinquishments through administrative restructures 3 (iii) (ii) - - - (6,317) (270) - (300) - (6,887) Net revaluation increments/decrements 20 (b) 19,386 369 ------19,755 Depreciation/amortisation expense 10 - (601) (232) (3,618) (3,490) (8,077) (510) - (16,528) Assets received as contributed capital ------9,990 9,990 Assets provided as contributed capital (9,135) ------(9,135) Asset received free of charge - - 19 - - - 82 - 101 Assets provided free of charge 11 (464) - - (219) - - (110) (144) (937) Transfers to assets classified as held for sale 759 ------759 Transfers from intangibles - - - 107 - - - - 107 Transfers between classes - - 30,861 43 (43) - - (30,861) - Carrying amount at 30 June 2007/1 July 2008 162,763 6,702 35,549 3,356 1,178 - 2,692 109,907 322,147 Additions - 82 561 1,896 1,746 - 1,803 124,392 130,480 Disposals/write offs 9 - - (36) (47) (521) - (967) - (1,571) Acquisitions through administrative restructures 3 (iv) ------Relinquishments through administrative restructures 3 (iii) (ii) ------Net revaluation increments/decrements 20 (b) 63,154 (2) ------63,152 Depreciation/amortisation expense 10 - (298) (1,195) (1,450) (1,316) - (592) - (4,851) Assets received as contributed capital - 663 ------663 Assets provided as contributed capital (18,252) ------(38,461) (56,713) Asset received free of charge - - 6,818 - - - 100 - 6,918 Assets provided free of charge 11 ------(148) - (148) Transfers to assets classified as held for sale ------Transfers from intangibles ------Transfers between classes - - - - 25,593 - - (25,593) - Carrying amount at 1 July 2008 207,665 7,147 41,697 3,755 26,680 - 2,888 170,245 460,077

141 Note 16. Payables

2008 2007 $’000 $’000 Creditors and accruals(i) 309,291 234,588 Trust fund creditors and accruals 303,841 299,574 Unearned/prepaid income 9,129 10,736 Total payables 622,261 544,898

(i) The average credit period is 30 days, a period in which no interest is charged.

(a) Maturity analysis of payables Please refer to Note 22(e) for the ageing analysis of payables. (b) Nature and extent of risk arising from payables Please refer to Note 22(e) for interest rate exposure.

Note 17. Loans and advances from Victorian Government

The department has the following non-interest bearing advances from the public account and other parts of government.

2008 2007 $’000 $’000 Advance from Victorian Government to fund channel deepening works undertaken by Port of Melbourne Corporation 150,000 -

Advance from Victorian Government to cover the net GST receivable by Department of Transport at 30 June 12,297 14,904

Advance from Department of Human Services for working capital on the Austin/Mercy hospital project - 5,300

Loan from heritage Victoria for Yarra Maritime Reserve - 494

Advance from Victorian Government to cover the transaction(i) - 99,218

Advance from Victorian Government to fund capital works on various infrastructure portfolio projects - 70,509

Advance from Victorian Government to fund works at the Commonwealth Games Village at Parkville Gardens(ii) - 34,234

Total loans and advances from Victorian Government 162,297 224,659

(i) On 4 May 2007 the department provided funds to VicTrack to acquire the track maintenance operations business from Pacific National. (ii) An advance of $56.956 million was originally transferred to DOT from the Department for Victorian Communities (refer Note 3 (iv)).

142 Department of Transport Annual Report 2007-08 Note 18. Interest bearing liabilities

Leasing arrangements Finance leases relate to motor vehicles with lease terms of three years or 60,000 kilometres (whichever occurs first).

Financial lease liabilities Minimum Future Lease Present Value of Minimum Payments * Future Lease Payments 2008 2007 2008 2007 $’000 $’000 $’000 $’000

FINANCIAL LEASE LIABILITIES PAYABLE Not longer than one year 1,523 1,148 1,356 843 Longer than one year and not longer than five years 1,841 2,083 1,718 2,123 Minimum lease payments 3,364 3,231 3,074 2,966 Less future finance charges (290) (265) - - Present value of minimum lease payments 3,074 2,966 3,074 2,966 Included in the balance sheet as: Current interest bearing liabilities 1,356 843 Non-current interest bearing liabilities 1,718 2,123 Total interest bearing liabilities 3,074 2,966

* Minimum future lease payments include the aggregate of all lease payments and any guaranteed residual.

143 Note 19. Provisions

2008 2007 $’000 $’000

CURRENT Employee benefits(i) Unconditional and expected to be settled within 12 months (ii) 5,943 6,038 Unconditional and expected to be settled after 12 months (iii) 10,458 9,780 Total employee benefits 16,401 15,818 Employee benefit on-costs Unconditional and expected to be settled within 12 months (ii) 747 756 Unconditional and expected to be settled after 12 months (iii) 1,643 1,544 Total employee benefits on-costs 2,390 2,300 Other provisions Provision for the employee entitlements of rail operators (iv) 5,700 5,803 Provision for fringe benefits tax 490 - Total other provisions 6,190 5,803

Total current 24,981 23,921

NON-CURRENT Employee benefits Conditional long service leave entitlements (v) 2,495 2,331 Employee benefit on-costs Provisions related to employee benefit on-costs 346 331 Other Provision for the employee entitlements of rail operators (iv) 196,511 186,176 Provision for public liability claims (vi) 1,166 1,093 Provision for dismantling property, plant and equipment 1,075 1,074 Other 4 4 Total non-current 201,597 191,009

Total provisions 226,578 214,930

(i) Provisions for employee benefits consist of amounts for annual leave and long service leave accrued by employees, not including on-costs. (ii) The amounts disclosed are nominal amounts. (iii) The amounts disclosed are discounted to present values. (iv) The state has agreed to assume responsibility for the employee entitlements of the employees of the Public Transport Operators as at 18 April 2004. (v) The amounts disclosed represents less than seven years of continuous service measured at present value. (vi) 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.

144 Department of Transport Annual Report 2007-08 (a) Provisions for employee benefits and related on-costs

2008 2007 Comprising of: $’000 $’000

CURRENT EMPLOYEE BENEFITS Annual leave 6,185 5,886 Long service leave 9,300 8,874 Accrued performance incentive 916 1,058 Total current provisions for employee benefits 16,401 15,818

NON-CURRENT EMPLOYEE BENEFITS Long service leave 2,495 2,331 Total non-current provisions for employee benefits 2,495 2,331 Total employee benefits 18,896 18,149

ON-COSTS Current on-costs 2,390 2,300 Non-current on-costs 346 331 Total on-costs 2,736 2,631

Total employee benefits and related on-costs 21,632 20,780

(b) Movement in provisions

Public Operator’s Liability employee On-costs Claims benefits Total $’000 $’000 $’000 $’000 Opening balance at 1 July 2007 2,631 1,093 191,979 195,703 Additional provisions recognised 907 981 16,210 18,098 Reductions arising from payments/other sacrifices of future economic benefits - (908) (5,978) (6,886) Reductions resulting from re-measurement or settlement without cost - - - - Unwind of discount and effect of changes in the discount rate (802) - - (802) Closing balance at 30 June 2008 2,736 1,166 202,211 206,113 Current 2,390 - 5,700 8,090 Non-current 346 1,166 196,511 198,023

145 Note 20. Equity and movements in equity

2008 2007 Note $’000 $’000

(a) CONTRIBUTED CAPITAL Balance at 1 July 360,029 371,426 Capital transactions with the state in its capacity as owner arising from: Appropriations 4 724,353 481,560 Return of equity (56,712) - Capital contributed upon administrative restructure: Net assets received 3 (iv) - 70,965 Net assets transferred 3 (ii) (iii) - (24,530) Capital contribution from other 73,163 9,990 Victorian Government agencies Capital contributions from other agencies outside - (4,985) the Transport Portfolio Capital contributions to agencies within (780,862) (544,397) the Transport portfolio * Balance at 30 June 319,971 360,029

(b) ASSET REVALUATION RESERVES Land revaluation reserve 149,782 86,423 Building revaluation reserve 2,694 2,571 Total asset revaluation reserve 152,476 88,994 Asset revaluation movements Balance at 1 July 88,994 74,286 Increment of land during the year 63,154 19,386 Transfer to/(from) accumulated surplus 330 (5,047) Increment/(decrement) of buildings during the year (2) 369 Balance at 30 June 152,476 88,994

(c) ACCUMULATED SURPLUS/(DEFICIT) Balance at 1 July (50,085) 274,930 Transfer (from)/to asset revaluation reserve (330) 5,047 Net result for the reporting period 205,408 (330,062) Balance at 30 June 154,993 (50,085) Total equity at 30 June 627,440 398,938 *Capital contributions to agencies within the Transport Portfolio: Rail services (VicTrack) 357,467 373,515 Road services (VicRoads) 182,433 111,450 Port of Melbourne Corporation 150,759 6,732 Public Transport Ticketing Body (TTA) 88,304 26,665 VicUrban(i) 1,299 11,230 Southern Cross Station Authority 600 14,805 Total capital contributions to agencies within the 780,862 544,397 Transport Portfolio

(i) VicUrban transferred from the Transport Portfolio to the Planning and Community Development portfolio on 8 August 2007. These transactions occurred whilst still in the Transport portfolio.

146 Department of Transport Annual Report 2007-08 Note 21. Cash flow information

(a) Reconciliation of cash and cash equivalents

2008 2007 Note $’000 $’000 Cash at bank and on hand 40,686 15,832 Funds held in trust – cash 30 338,520 416,447 – short-term deposit 30 50,000 50,000 Total cash and cash equivalents 429,206 482,279

The above figures are reconciled to cash at the end of the financial year as shown in the cash flow statement.

Due to the Victorian Government the public account occurs upon the investment policy and government presentation of the cheques by the funding arrangements the funds of department’s suppliers or creditors, the department are generally held in i.e. transfer of electronic funds. the ‘public account’. Cash received by a department from the generation The above funding arrangements of revenue is generally paid into often result in departments having the state’s bank account, known as a notional shortfall in cash at bank the public account. Similarly, any required for payment of unpresented departmental expenditure, is made cheques at the reporting date. At via the public account. The public 30 June 2008, cash at bank included account remits to the department the the amount of a notional shortfall cash required for the amount drawn for the payment of unpresented on cheques and electronic funds cheques of $1.922 million (2007 – transfers (EFT). This remittance by $3.449 million).

(b) Non-cash financing and investing activities

2008 2007 Note $’000 $’000 Restructuring of administrative arrangements: Net assets received 3(iv), 20(a) - 70,965 Net assets transferred 3(ii)(iii), 20(a) - (24,530) Acquisition of property, plant and equipment 15 1,803 1,463 by means of finance leases Total non-cash financing and investing activities 1,803 47,898

Restructuring of administrative arrangements Details with respect to the restructuring of administrative arrangements are set out in Note 3.

Acquisition of property, plant and equipment by means of finance leases The acquisitions relate to motor vehicles purchases under finance leases.

147 Note 21. Cash flow information (continued)

(c) Reconciliation of the net result for the reporting period to net cash flows from operating activities

2008 2007 Note $’000 $’000 Net result for the reporting period 205,408 (330,062)

NON-CASH MOVEMENTS Value of assets written down/disposed of 14,781 23,749 Depreciation and amortisation 10 7,285 21,035 Net resources and assets received/provided (4,739) 741 free of charge

MOVEMENTS IN ASSETS AND LIABILITIES (NET OF RESTRUCTURING) Increase in receivables (28,851) (96,602) Increase in inventories (64,387) - Decrease/(increase) in prepayments 129 (544) (Decrease)/increase in payables and advances (2,202) 109,789 Increase in provisions 11,415 2,720 (Decrease) in prepaid lease income (1,845) (67) Net cash flow from (used in) operating activities 136,994 (269,241)

148 Department of Transport Annual Report 2007-08 Note 22. Financial instruments

(a) Categorisation of financial instruments(i)

2008 2007 Note Category $’000 $’000 Financial assets Cash and cash equivalents N/A 379,206 432,279 Receivables(ii) 12 Loans and receivables 109,270 61,901 Other financial assets Held-to-maturity investments 50,000 50,000 Financial liabilities Payables(iii) 16 Financial liabilities 616,442 9,379 Interest bearing liabilities Financial liabilities 3,074 2,966

(i) The amount disclosed represents the carrying amount for the reporting period. (ii) The amount of receivables disclosed exclude statutory receivables (i.e. amounts owing from Victorian Government and GST input tax credit recoverable). (iii) The amount of payable disclosed exclude GST output tax payable.

(b) Credit risk exposures Credit risk arises from the financial assets of the department, which comprise cash and cash equivalents, trade and other receivables. The department’s exposure to credit risk arises from the potential default of counter party on their contractual obligations resulting in financial loss to the department. Credit risk is measured at fair value and is monitored on a regular basis.

Credit risk associated with the department’s financial assets is minimal because the main debtor is the Victorian Government. For debtors other than government, it is the department’s policy to only deal with entities with high credit ratings and to obtain sufficient collateral or credit enhancements where appropriate.

In addition, the department does not engage in hedging for its financial assets and mainly obtains financial assets that are on fixed interest.

Provision of impairment for financial assets is calculated based on past experience, and current and expected changes in client credit ratings.

The carrying amount of financial assets recorded in the financial report, net of any allowances for losses, represents the department’s maximum exposure to credit risk without taking account of the value of any collateral obtained.

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.

Financial assets that are either past due or impaired Currently the department does not hold any collateral as security nor credit enhancements relating to any of its financial assets.

As at the reporting date, there is no event to indicate that any of the financial assets were impaired.

There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they are stated at the carrying amounts as indicated. The following table discloses the ageing only of financial assets that are past due but not impaired.

149 Note 22. Financial Instruments (continued)

(c) Interest exposure and ageing analysis of financial assets(i)

Weighted Carrying amount Interest rate exposure Past due but not impaired average effective Fixed Variable Non-interest Not past due and interest rate % interest rate interest rate bearing not impaired Less than 1 Impaired 2008 $’000 $’000 $’000 $’000 $’000 month 1 - 3 months 3 months - 1 year 1 - 5 years financial assets Receivable Debtors - 69,068 - - 69,068 52,104 1,032 6,389 9,177 366 - Other receivables - 40,202 - - 40,202 40,202 ------109,270 - - 109,270 92,306 1,032 6,389 9,177 366 -

2007 Receivable Debtors - 19,644 - - 19,644 18,599 355 293 391 6 - Other receivables - 42,257 - - 42,257 42,257 ------61,901 - - 61,901 60,856 355 293 391 6 -

(i) Ageing analysis of financial assets excludes the types of statutory financial assets (e.g. amounts owing from Victorian Government and GST input tax credit recoverable).

(d) Liquidity risk Liquidity risk arises when the department is unable to meet its financial obligations as they fall due. The department operates under the government fair payments policy of settling financial obligations within 30 days and in the event of a dispute, make payments within 30 days from the date of resolution. It also continuously manages risk through monitoring future cash flows and maturities planning to ensure adequate holding of high quality liquid assets and dealing in highly liquid markets.

The department’s exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk. Cash for unexpected events is generally sourced from liquidation of available-for-sale financial investments.

Maximum exposure to liquidity risk is the carrying amounts of financial liabilities.

150 Department of Transport Annual Report 2007-08 Weighted Carrying amount Interest rate exposure Past due but not impaired average effective Fixed Variable Non-interest Not past due and interest rate % interest rate interest rate bearing not impaired Less than 1 Impaired 2008 $’000 $’000 $’000 $’000 $’000 month 1 - 3 months 3 months - 1 year 1 - 5 years financial assets Receivable Debtors - 69,068 - - 69,068 52,104 1,032 6,389 9,177 366 - Other receivables - 40,202 - - 40,202 40,202 ------109,270 - - 109,270 92,306 1,032 6,389 9,177 366 -

2007 Receivable Debtors - 19,644 - - 19,644 18,599 355 293 391 6 - Other receivables - 42,257 - - 42,257 42,257 ------61,901 - - 61,901 60,856 355 293 391 6 -

(i) Ageing analysis of financial assets excludes the types of statutory financial assets (e.g. amounts owing from Victorian Government and GST input tax credit recoverable).

151 Note 22. Financial Instruments (continued)

(e) Interest rate exposure and maturity analysis of financial liabilities

Weighted Carrying amount Interest rate exposure Maturity dates(i) average effective Fixed Variable Non-interest interest rate % interest rate interest rate bearing Nominal amount Less than 1 2008 $’000 $’000 $’000 $’000 $’000 month 1 - 3 months 3 months - 1 year 1 - 5 years Payables: Creditors - 39,435 - - 39,435 39,435 36,721 11 2,676 27 Other payables - 577,007 - - 577,007 577,007 577,007 - - - Interest bearing liabilities 7.03% 3,074 - 290 - 3,364 403 150 994 1,817 Advances from government - 162,297 - - 162,297 162,297 162,297 - - - 781,813 - 290 778,739 782,103 776,428 161 3,670 1,844

2007 Payables: Creditors - 40,346 - - 40,346 40,346 40,323 25 - (2) Other payables - 503,195 - - 503,195 503,195 503,195 - - - Interest bearing liabilities 6.20% 2,966 - 265 - 3,231 405 112 695 2,019 Advances from government - 224,660 - - 224,660 224,660 - - 62,363 162,297 771,167 - 265 768,201 771,432 543,923 137 63,058 164,313

(i) The amounts disclosed are the contractual undiscounted cash flows of each class of financial liabilities.

(f) Fair value of financial assets and liabilities (i) On-statement of balance sheet The net fair value of cash and cash equivalents and non-interest bearing monetary financial assets and financial liabilities of the department equals their carrying amounts.

(ii) Off-statement of balance sheet The department has potential financial assets and liabilities which may arise from certain contingencies disclosed in Notes 24 and 25. As explained in those Notes, contingent liabilities by definition are similar to a liability – the distinguishing feature being the uncertainty over the government’s obligation.

152 Department of Transport Annual Report 2007-08 Weighted Carrying amount Interest rate exposure Maturity dates(i) average effective Fixed Variable Non-interest interest rate % interest rate interest rate bearing Nominal amount Less than 1 2008 $’000 $’000 $’000 $’000 $’000 month 1 - 3 months 3 months - 1 year 1 - 5 years Payables: Creditors - 39,435 - - 39,435 39,435 36,721 11 2,676 27 Other payables - 577,007 - - 577,007 577,007 577,007 - - - Interest bearing liabilities 7.03% 3,074 - 290 - 3,364 403 150 994 1,817 Advances from government - 162,297 - - 162,297 162,297 162,297 - - - 781,813 - 290 778,739 782,103 776,428 161 3,670 1,844

2007 Payables: Creditors - 40,346 - - 40,346 40,346 40,323 25 - (2) Other payables - 503,195 - - 503,195 503,195 503,195 - - - Interest bearing liabilities 6.20% 2,966 - 265 - 3,231 405 112 695 2,019 Advances from government - 224,660 - - 224,660 224,660 - - 62,363 162,297 771,167 - 265 768,201 771,432 543,923 137 63,058 164,313

(i) The amounts disclosed are the contractual undiscounted cash flows of each class of financial liabilities.

153 Note 23. Commitments for expenditure

The following commitments have not been recognised as liabilities in the financial statements. 2008 2007 $’000 $’000 CAPITAL AND OTHER RELATED COMMITMENTS Commitments contracted for at the reporting date but not recognised as liabilities, payable: Within one year 244,589 228,844 Later than one year but not later than five years 171,552 182,694 Later than five years 91,963 10,360 Capital and other related commitments (inclusive of GST) 508,104 421,898 Less: GST recoverable (46,191) (38,354) Capital and other related commitments (exclusive of GST) 461,913 383,544

2008 2007 $’000 $’000 Non- Non- RAIL COMMITMENTS discounted discounted Commitments in relation to rail services contracted for at the reporting date but not recognised as liabilities, payable: Within one year 1,117,356 1,029,838 Later than one year but not later than five years 1,396,271 1,534,170 Later than five years 1,014,899 1,236,048 Rail commitments (inclusive of GST) 3,528,526 3,800,056 Less: GST recoverable (320,775) (345,460) Rail commitments (exclusive of GST) 3,207,751 3,454,596

Rail and bus commitments In February 2004, the government In addition to the train and tram announced new partnership arrangements, a new industry-wide The department has entered into arrangements to deliver the body, MetLink, which is responsible a number of contracts with private metropolitan tram and train system. for providing and overviewing operators to provide Victoria’s tram, The government signed contracts network-wide ticketing, marketing, train and bus services. Under the with Yarra Trams to operate the information and complaints handling terms of these agreements, the total metropolitan tram network services, commenced operations. department provides subsidies and with Connex to operate the MetLink mainly subsumes the for transport services and capital total metropolitan train network. functions of the Revenue Clearing commitments. The new partnership arrangements House, VicTrip and the Melbourne The estimates for rail and bus have reduced risk for the operators Passenger Growth Initiative but also commitments have been calculated and also provide for greater state takes on additional responsibilities. as at 30 June 2008 based on these protection regarding performance and existing contracts. obligations.

154 Department of Transport Annual Report 2007-08 The new partnership arrangements The partnership commitments have V/Line passenger rail services were effective from 18 April 2004 and been calculated on the basis of the reverted to government control with operate for approximately a five-year contract period up to 30 November a new partnership arrangement period to 30 November 2008. The 2009 with the exception of V/Line established for the period from 1 state has an option to extend the rail commitments which have been October 2003 to 29 October 2006. This partnership period for a period of calculated on the basis of the contract arrangement has been extended to no less than six months and ending period up to 31 December 2009. 31 December 2009. no later than 31 May 2010. The state Additional commitments, however, has exercised this option and has have been included to identify specific extended the train and tram contracts contracts entered into for additional for a year ending on 30 November services and capital works that extend 2009. beyond the contract period to 2010.

2008 2007 $’000 $’000 Non- Non- BUS COMMITMENTS discounted discounted Commitments in relation to bus services contracted for at the reporting date but not recognised as liabilities, payable: Within one year 746,175 479,232 Later than one year but not later than five years 2,376,983 197,164 Later than five years 1,057,660 - Bus commitments (inclusive of GST) 4,180,818 676,396 Less: GST recoverable (380,074) (61,492) Bus commitments (exclusive of GST) 3,800,743 614,904

Comparisons of the bus commitment at 30 June 2008 with the prior year reveal the following changes: »» bus commitments have expired one additional year since 30 June 2007 »» country bus contracts expire in 2010 »» V/Line Road Coach contracts have expired »» marketed contracts have expired »» a new seven-year Metropolitan Bus contracts effective 1 July 2008 (excluding National Bus Company and Melbourne Bus Link) »» National Bus Company and Melbourne Bus Link have new four and a half year contracts effective 1 July 2008 »» new interim School Bus contracts are effective from 1 July 2008 for an 18-month period »» NightRider contracts extended to 30 September 2008.

155 Note 23. Commitments for expenditure (continued)

2008 2007 LEASES $’000 $’000 Commitments for minimum lease payments in relation to non-cancellable leases are payable as follows: Within one year 17,786 20,669 Later than one year but not later than five years 69,326 70,264 Later than five years 165,540 180,657 Leases commitments (inclusive of GST) 252,652 271,590 Less: GST recoverable (22,968) (24,690) Leases commitments (exclusive of GST) 229,684 246,900 Future minimum lease payments expected to be received in - - relation to non-cancellable sub-leases of operating leases

Financial lease liabilities are disclosed in Note 19 to the financial statements.

2008 2007 OUTSOURCING COMMITMENTS $’000 $’000 Commitments under outsourcing contracts at the reporting date but not recognised as liabilities, payable: Within one year - 523 Later than one year but not later than five years - - Later than five years - - Outstanding commitments (inclusive of GST) - 523 Less: GST recoverable (48) Outstanding commitments (exclusive of GST) - 475

Note 24. Contingent assets

Contingent assets arise from guarantees, indemnities and other forms of support provided to government departments and from legal disputes and other claims by government departments arising from a past event. Contingent assets by definition are similar to an asset – the distinguishing feature being the uncertainty over the government’s entitlement. Contingent assets arising from litigation The department has initiated proceedings to recover clean-up costs associated with marine pollution incidents from various entities.

156 Department of Transport Annual Report 2007-08 Note 25. Contingent liabilities

Contingent liabilities arise from commencement of new partnership guarantees, indemnities and arrangements and deal with any other forms of support provided subsequent termination issues. by the government and from legal disputes and other claims against The Treasurer, under the Receivership the government arising from a Deed of Indemnity, has agreed to past event. Contingent liabilities by indemnify the receivers for debts definition are similar to a liability – properly incurred by them in the the distinguishing feature being the course of receivership. The Treasurer uncertainty over the government’s has also agreed to remunerate the obligation. receivers in accordance with the rates set out in the deed. Public transport rail partnership agreements On 1 October 2003, V/Line Passenger Pty Ltd, a company under a Deed The Director of Public Transport, on of Company Arrangement, was behalf of the Crown, entered into purchased by V/Line Passenger new contractual arrangements to Corporation, a statutory authority operate services in the and has reverted to government state operative from 18 April 2004. ownership. The following summarises the major contingent liabilities arising from Contingent liabilities arising those arrangements. from GST Contingent liabilities on early The department’s eligibility to claim termination or expiry of partnership input tax credits for payment of agreement certain transport related subsidies is currently under review by the Partnership assets Australian Tax Office (ATO). This may To maintain continuity of services, the result in a liability to the ATO which, Director, at early termination or expiry as at 30 June 2008, is unquantifiable. of the partnership arrangements, will for partnership assets – either Contingent liabilities arising purchase the assets or have the from litigation assets transferred to the successor. The department is defending, on behalf of the state, a claim for Unfunded superannuation damages relating to the development At the early termination or expiry and management of an intermodal of the contract, the Director will freight terminal in Gippsland. To date assume any unfunded superannuation the claim is unquantifiable. amounts (apart from contributions the operator is required to pay over Details and estimates of other the contract term) to the extent that contingent liabilities are as follows: the state becomes the successor operator. 2008 2007 QUANTIFIED $’000 $’000 Contingent liabilities arising from Legal disputes 100 503 National Express receivership Personal injury 1,759 700 In December 2002, the government 1,859 1,203 appointed receivers and managers to the National Express train and tram partnerships, in order to protect government interest, ensure continuation of services up to the

157 Note 26. Superannuation

Government employees’ superannuation schemes No liability is recognised in the balance sheet 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 Department of Treasury and Finance.

However, superannuation contributions for the reporting period are included as part of employee benefits in the operating statement 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:

Contribution for the Year 2008 2007 SCHEME $’000 $’000

DEFINED BENEFIT SCHEME State Superannuation Scheme – revised and new 1,348 2,511 Victorian Water Superannuation Fund 35 57 Transport Superannuation Fund 252 428 Total defined benefit plans 1,636 2,997

DEFINED CONTRIBUTION SCHEME Victorian Superannuation Fund 10,370 8,582 Various other 4,001 2,642 Total defined contribution scheme 14,371 11,224

Total superannuation scheme 16,007 14,221

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.

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.

There were no loans made by the superannuation funds to the department during the year.

158 Department of Transport Annual Report 2007-08 Note 27. Major Projects Victoria

Land sales Project development and Capital works expenditure construction management undertaken during the reporting The activities of Major Projects for sponsor agencies period by MPV has been included Victoria (MPV) include land sales from in the cash flow statement and in nominated property development MPV, under delegated authority from the sponsor agencies’ accounts as projects, the proceeds from which the Secretary to the Department of either completed works or works are remitted directly into the Transport, manages the government’s in progress. While the operating consolidated fund and are disclosed interest in delivering major projects, statement does not include the as administered items in the drawing on funds appropriated to income or expenditure of sponsor department’s financial statements sponsor agencies. Refer also Note agencies, the statement of financial (refer Note 28 Administered items). 1(c). position does reflect funds owing The level of settlements realised on for project works and monies held these residential developments and Completed projects are transferred to the appropriate sponsor agency on behalf of sponsor agencies. land sales are slowly diminishing The following summary represents as these projects are approaching responsible for the asset occupancy and use. sponsor agencies where capital completion. expenditures have been undertaken by MPV during the year.

2008 2007 SPONSOR AGENCY* $’000 $’000 Department of Premier and Cabinet 63,406 64,664 Department of Planning and Community Development ** 60,004 13,233 Department of Human Services 32,672 29,395 Department of Innovation, Industry and Regional Development 20,820 41,429 Department of Primary Industries 9,238 2,778 Department of Sustainability and Environment 617 - Other 19 - Total sponsor agency 186,776 151,499

* Excludes GST. ** Formerly known as the Department of Victorian Communities.

The following outlines the commitments undertaken by MPV on behalf of sponsor agencies which are disclosed in the notes to their financial statements.

2008 2007 $’000 $’000 Department of Planning and Community Development * 195,790 9,881 Department of Premier and Cabinet 18,016 63,784 Department of Human Services 10,776 27,205 Department of Primary Industries 2,613 82 Department of Innovation, Industry and Regional Development 968 19,266 Capital commitment (inclusive of GST) 228,163 120,218 Less: GST recoverable (20,742) (10,929) Capital commitment (exclusive of GST) 207,421 109,289

* Formerly known as the Department of Victorian Communities.

159 Note 28. Administered items

(a) Administered transactions Public Safety and Security Public Transport Services ICT Policy, Programs and Infrastructure Planning, TOTAL Infrastructure (i) Delivery and Management (ii) 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

ADMINISTERED INCOME Vehicle registration fees 759,551 709,961 ------759,551 709,961 Stamp duty on vehicles and transfers 568,603 546,579 ------568,603 546,579 Commonwealth grants 9,928 10,272 - - - - 429,555 329,568 439,483 339,840 Statutory fines 11 - 32,478 13,306 - - - - 32,489 13,306 Driver licences 29,372 40,889 ------29,372 40,889 Regulatory fees 21,649 17,050 ------21,649 17,050 Net concession fees income (refer Note 28 (b)) ------21,566 43,195 21,566 43,195 Transfer and permit fees 21,009 20,105 ------21,009 20,105 Natural disaster funding ------16,370 5,200 16,370 5,200 Revenue from disposal of assets ------11,483 28,631 11,483 28,631 Sale of goods and services 1,301 - 9 - - - 66 863 1,376 863 Interest income ------105 520 105 520 Forgiveness of liability - - - 82,870 - - - - - 82,870 Appropriations – payments made on behalf of the state ------18,500 - 18,500 Other income - 3,633 - 822 - - 6,233 4,167 6,233 8,622 Total administered income 1,411,424 1,348,489 32,487 96,998 - - 485,378 430,644 1,929,289 1,876,131

ADMINISTERED EXPENSES Payments into the consolidated fund 1,411,424 1,348,489 14,888 13,311 - - 848,866 370,737 2,275,178 1,732,537 Assets provided free of charge to Melbourne City Council ------170,394 - 170,394 - Assets provided free of charge to Port Phillip Housing Authority ------56,712 - 56,712 - Assets provided free of charge to Australian Rail Track Corporation - - 47,037 - - - - - 47,037 - Natural disaster expenditure ------16,370 5,200 16,370 5,200 Payments made on behalf of the state ------18,500 - 18,500 Total administered expenditure 1,411,424 1,348,489 61,925 13,311 - - 1,092,342 394,437 2,565,691 1,756,237

Income less expenses - - 29,438 83,687 - - (606,964) 36,207 (636,402) 119,894

ADMINISTERED ASSETS Cash and receivables - - 19,632 2,877 - - - - 19,632 2,877 Funds held in trust 1,418 2,123 2,820 919 - - 844 4,801 5,082 7,843 Concession fee notes receivable (refer Note 28 (b)) ------193,854 572,652 193,854 572,652 Total administered assets 1,418 2,123 22,452 3,796 - - 194,698 577,453 218,568 583,372

ADMINISTERED LIABILITIES Creditors and payables - - 413 6,435 - - 3,946 4,257 4,359 10,692 Deferred CityLink redevelopment income ------320,256 316,468 320,256 316,468 (refer Note 28 (b)) Total administered liabilities - - 413 6,435 - - 324,202 320,725 324,615 327,160

(i) In the restructure of administrative arrangements effective 1 January 2007 this output group has transferred out of DOT. (ii) In the restructure of administrative arrangements effective 1 January 2007 the ‘Energy Policy Services’ output, which is within this output group, was transferred out of DOT.

160 Department of Transport Annual Report 2007-08 (a) Administered transactions Public Safety and Security Public Transport Services ICT Policy, Programs and Infrastructure Planning, TOTAL Infrastructure (i) Delivery and Management (ii) 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

ADMINISTERED INCOME Vehicle registration fees 759,551 709,961 ------759,551 709,961 Stamp duty on vehicles and transfers 568,603 546,579 ------568,603 546,579 Commonwealth grants 9,928 10,272 - - - - 429,555 329,568 439,483 339,840 Statutory fines 11 - 32,478 13,306 - - - - 32,489 13,306 Driver licences 29,372 40,889 ------29,372 40,889 Regulatory fees 21,649 17,050 ------21,649 17,050 Net concession fees income (refer Note 28 (b)) ------21,566 43,195 21,566 43,195 Transfer and permit fees 21,009 20,105 ------21,009 20,105 Natural disaster funding ------16,370 5,200 16,370 5,200 Revenue from disposal of assets ------11,483 28,631 11,483 28,631 Sale of goods and services 1,301 - 9 - - - 66 863 1,376 863 Interest income ------105 520 105 520 Forgiveness of liability - - - 82,870 - - - - - 82,870 Appropriations – payments made on behalf of the state ------18,500 - 18,500 Other income - 3,633 - 822 - - 6,233 4,167 6,233 8,622 Total administered income 1,411,424 1,348,489 32,487 96,998 - - 485,378 430,644 1,929,289 1,876,131

ADMINISTERED EXPENSES Payments into the consolidated fund 1,411,424 1,348,489 14,888 13,311 - - 848,866 370,737 2,275,178 1,732,537 Assets provided free of charge to Melbourne City Council ------170,394 - 170,394 - Assets provided free of charge to Port Phillip Housing Authority ------56,712 - 56,712 - Assets provided free of charge to Australian Rail Track Corporation - - 47,037 - - - - - 47,037 - Natural disaster expenditure ------16,370 5,200 16,370 5,200 Payments made on behalf of the state ------18,500 - 18,500 Total administered expenditure 1,411,424 1,348,489 61,925 13,311 - - 1,092,342 394,437 2,565,691 1,756,237

Income less expenses - - 29,438 83,687 - - (606,964) 36,207 (636,402) 119,894

ADMINISTERED ASSETS Cash and receivables - - 19,632 2,877 - - - - 19,632 2,877 Funds held in trust 1,418 2,123 2,820 919 - - 844 4,801 5,082 7,843 Concession fee notes receivable (refer Note 28 (b)) ------193,854 572,652 193,854 572,652 Total administered assets 1,418 2,123 22,452 3,796 - - 194,698 577,453 218,568 583,372

ADMINISTERED LIABILITIES Creditors and payables - - 413 6,435 - - 3,946 4,257 4,359 10,692 Deferred CityLink redevelopment income ------320,256 316,468 320,256 316,468 (refer Note 28 (b)) Total administered liabilities - - 413 6,435 - - 324,202 320,725 324,615 327,160

(i) In the restructure of administrative arrangements effective 1 January 2007 this output group has transferred out of DOT. (ii) In the restructure of administrative arrangements effective 1 January 2007 the ‘Energy Policy Services’ output, which is within this output group, was transferred out of DOT.

161 Note 28. Administered items (continued)

(b) CityLink Concession Deed

2008 2007 Summary of CityLink Concession Deed income, expenses, assets and liabilities: $’000 $’000

CITYLINK INCOME CityLink concession notes income Concession notes revenue 24,663 23,978 Revaluation increment 25,354 21,744 Total CityLink concession notes income 50,017 45,722 CityLink redevelopment income 1,430 5,170 Total CityLink income 51,447 50,892

CITYLINK EXPENSE CityLink concession notes revaluation decrement 29,881 7,697 Total CityLink expense 29,881 7,697

Net income 21,566 43,195

CITYLINK ASSETS Present value of CityLink concession notes receivable 193,854 572,652 Total CityLink assets 193,854 572,652

CITYLINK LIABILITIES 320,256 316,468 Total CityLink liabilities 320,256 316,468

2008 2007 Reconciliation of the present value of CityLink receivables $’000 $’000 Present value at the beginning of the year 572,652 - Payments received (404,152) - Revaluation increment 25,354 - Present value at the end of the year 193,854 -

2008 2007 Reconciliation of the present value of deferred CityLink revenue $’000 $’000 Present value at the beginning of the year 316,468 - Concession notes revenue (24,663) - Redevelopment revenue (1,430) - Revaluation increment 29,881 - Present value at the end of the year 320,256 -

162 Department of Transport Annual Report 2007-08 The present value of CityLink Revenue sharing from the »» the Victorian Government is entitled receivables is the value of future Tullamarine-Calder freeway to 50 percent of the additional payments to be received by the interchange upgrade revenue for CityLink created by Victorian Government in accordance On 9 June 2005, CityLink and the the Monash-CityLink-West Gate with the M1 Corridor Deed of Victorian Government entered into Upgrade after CityLink recovers Assignment. the Tullamarine-Calder Freeway its construction and additional Redevelopment Deed. Under the operating costs relating to the The present value of deferred CityLink terms of this deed: southern link works income is the value of concession notes revenue due to be received »» the Victorian Government will »» the method of calculating the by the Victorian Government in upgrade the Tullamarine-Calder additional CityLink revenue future period in accordance with the Freeway Interchange generated by the upgrade is to be Melbourne CityLink Concession Deed. based on comparing the actual »» CityLink paid $11 million to the CityLink revenue against agreed CityLink contingent asset Victorian Government as an upfront trend revenue sharing consideration on Compensable enhancement claims 1 July 2005 »» the actual calculation of the additional CityLink revenue will take The Melbourne CityLink Concession »» CityLink and the Victorian place three full financial years after Deed contains compensable Government agreed on a method completion of the upgrade. enhancement provisions that enable of calculating the additional the Victorian Government to claim CityLink revenue generated by the CityLink contingent liability 50 percent of additional revenue upgrade based on comparing the An outstanding claim exists from derived by CityLink Melbourne Limited actual traffic data against agreed CityLink pursuant to the Melbourne (CityLink) as a result of certain events trends. Where this calculation CityLink Concession Deed, relating that particularly benefit CityLink method produces an amount in to an alleged material adverse effect including changes to the adjoining excess of the revenue sharing in respect of the widening of certain road network. consideration already paid to the sections of the West Gate Freeway Victorian Government, half of the On 20 May 2005, the Victorian and certain other roads in the excess amount will be payable to Government lodged a compensable Docklands area. In accordance with the government in addition to the enhancement claim relating to works the Concession Deed, the claim was $11 million payment made on to improve the traffic flow on the West referred to an independent expert 1 July 2005 Gate Freeway between Lorimer and who has determined in favour of the Montague Streets. The claim remains »» the actual calculation of the Victorian Government. CityLink has outstanding at the certification date of additional CityLink revenue will take now referred the claim to arbitration. the financial report. place 30 months after completion of the upgrade. This claim is being defended by On 29 September 2006, the Victorian VicRoads on behalf of the Victorian Government lodged a compensable Revenue sharing from the Monash- Government and is unable to assess enhancement claim relating to works CityLink-West Gate upgrade the likelihood of the success of the to improve the traffic flow in the claim at the certification date of this On 25 July 2006, CityLink, TransUrban vicinity of the intersection of the Bulla financial report. Infrastructure Management Limited Road and the Tullamarine Freeway. and the Victorian Government entered The claim remains outstanding at into the M1 Corridor Redevelopment the certification date of the financial Deed. Under the terms of this deed: report. »» the Victorian Government will upgrade the Monash and West Gate Freeways »» CityLink will upgrade the southern link part of CityLink

163 Note 28. Administered items (continued)

Goods and Service Tax The Concession Deed requires concession notes has been calculated CityLink to pay to the Victorian based on an interest rate implied CityLink and the Victorian Government Government specified concession in the estimated concession note have approached the Australian fees at six monthly intervals during redemption profile included in the Taxation Office seeking clarification the concession period. In accordance M1 Corridor Deed of Assignment. as to the applicability of Goods and with the Concession Deed, CityLink The value of future payments to be Services Tax legislation in respect of has exercised an option to meet its received by the Victorian Government service and supplies provided under obligations to pay concession fees in accordance with the M1 Corridor the Melbourne CityLink Concession by way of issuing concession notes. Deed of Assignment has been Deed. Discussions with the Australian These notes are non-interest bearing disclosed at the present value of the Taxation Office are continuing at the promissory notes payable by CityLink payment using a discount interest certification date of the financial at the end of the concession period rate equivalent to the three year report. (14 January 2034) or earlier in the Commonwealth Bond rate. event of CityLink achieving certain Management of The Concession Deed provides for Melbourne CityLink financial profitability levels and cash flows. CityLink to lease certain land and functions and powers road infrastructure from the Victorian On behalf of the state, VicRoads The Victorian Government, CityLink Government during this concession manages the statutory functions and and Transurban Infrastructure period. At the end of this period these powers of the Melbourne CityLink Management Limited (TIML) entered assets are to be returned, together Act 1995 on behalf of the Victorian into the M1 Corridor Deed of with the transfer of the CityLink road Government in accordance with the Assignment on 25 July 2006. Under network, to the government. Transport Legislation [Miscellaneous the terms of the Deed of Assignment, Amendment] Act 2004. These functions all concession notes held by, and The accounting treatment to and powers include the administration due to be issued to the Victorian recognise the right of the Victorian of revenue and assets arising from the Government in accordance with the Government to receive the CityLink Melbourne CityLink Act 1995. Concession Deed have been assigned road network is currently being to TIML for a defined payment stream considered by the accounting In accordance with the Melbourne totalling $614.254 million in nominal profession and a cross-jurisdictional CityLink Act 1995, the Victorian terms, over a four-year period. government working party. This Government and CityLink Melbourne right has not been recognised as Limited (CityLink) entered into the The concession notes and related an administered asset in the Melbourne CityLink Concession Deed revenues are not recognised as financial report. on 30 October 1995. Under the terms departmental or VicRoads revenue of the Concession Deed, CityLink and assets. Details of the concession is responsible for the construction, notes and related revenues are financing and operation of the disclosed above in this Note. CityLink road network. CityLink has a right to operate the road network The value of concession notes for 33.5 years after completion of due to be received by the Victorian construction (up until 14 January Government in accordance with the 2034). Concession Deed, has been disclosed at the present value of concession notes to be issued in future periods by CityLink. The present value of the

164 Department of Transport Annual Report 2007-08 Note 29. Annotated receipts agreements

The following is a listing of Section 29 Annotated Receipt Agreements approved by the Treasurer. 2008 2007 Note $’000 $’000

USER CHARGES, OR SALES OF GOODS AND SERVICES Replacement of registration label charge 803 784

COMMONWEALTH SPECIFIC PURPOSE PAYMENTS AusLink road project grants 346,997 301,860 AusLink rail and road project grants 77,943 - Interstate road transport registration charges 14,543 13,770 Blackspot program road project grants - 10,272 Total annotated receipts agreements 4 440,286 326,686

Note 30. Trust account balances

The following is a listing of trust account balances relating to trust accounts controlled and administered by the department. 2008 2007 Cash and investments as at 30 June Note $’000 $’000

CONTROLLED TRUSTS Public Transport Fund 316,192 316,972 Better Roads Victoria Trust Account 69,716 139,508 Treasury Trust Fund 2,612 9,967 Total controlled trusts 21 (a) 388,520 466,447

ADMINISTERED TRUSTS Treasury Trust Fund 5,398 8,119 Public Service Commuter Club Trust (316) (276) Total administered trusts 5,082 7,843

Total trust account balances 393,603 474,290

165 Note 31. Responsible persons

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 positions of Ministers and Accountable Officers in the department are as follows:

Minister for Public Transport Lynne Kosky MP 1 July 2007 to 30 June 2008

Minister for Roads and Ports Tim Pallas MP 1 July 2007 to 30 June 2008

Minister for Major Projects Theo Theophanous MP 1 July 2007 to 30 June 2008

Secretary, Department of Transport Jim Betts 14 May 2008 to 30 June 2008

Secretary, Department of Transport Howard Ronaldson 1 July 2007 to 13 May 2008

Remuneration Total remuneration received or receivable by the Accountable Officer, excluding Acting Accountable Officers whose remuneration is included in ‘Remuneration of Executives’ (refer to Note 32) in connection with the management of the department during the reporting period was in the range:

2008 2007 No. Income Band No. Income Band 1 Less than $100,000 - - 1 $300,000–$309,000 1 $360,000–$369,999

Remuneration amounts relating to Ministers are reported in the financial statements of the Department of Premier and Cabinet. Other transactions 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.

166 Department of Transport Annual Report 2007-08 Note 32. Remuneration of executives

The numbers of executive officers, other than Ministers and the Accountable Officer 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.

Total Remuneration Base Remuneration 2008 2007 2008 2007 Income Band No. No. No. No. Less than $100,000 14 17 14 21 $100,000–109,999 1 3 5 2 $110,000–119,999 3 2 3 3 $120,000–129,999 3 2 3 1 $130,000–139,999 4 3 4 4 $140,000–149,999 2 5 4 7 $150,000–159,999 5 5 8 11 $160,000–169,999 8 10 3 3 $170,000–179,999 3 4 5 3 $180,000–189,999 5 5 3 3 $190,000–199,999 2 1 3 5 $200,000–209,999 2 3 3 4 $210,000–219,999 4 4 3 1 $220,000–229,999 3 2 1 1 $230,000–239,999 - 1 1 2 $240,000–249,999 1 1 2 - $250,000–259,999 - 1 1 2 $260,000–269,999 1 - 1 - $270,000–279,999 2 1 1 1 $280,000–289,999 - 2 - - $290,000–299,999 3 1 - - $300,000–309,999 1 - - - $310,000–319,999 - 1 - - $320,000–329,999 1 - - - Total numbers 68 74 68 74

Total amount $10,910,961 $11,364,789 $9,828,803 $10,333,214

167 Note 33. Remuneration of auditors

Audit fees paid or payable to the Victorian Auditor-General’s Office for audit of the department’s financial report: 2008 2007 $’000 $’000 Paid as at 30 June 186 130 Payable as at 30 June 105 139 Total remuneration of auditors 291 269

The Auditor-General’s Office has not provided the department with any other services.

168 Department of Transport Annual Report 2007-08 Note 34. Significant events

Pursuant to Administrative Arrangements Order (No.199) 2008, the functions of Major Projects Victoria (MPV) were transferred to the Department of Innovation, Industry and Regional Development (DIIRD) on 30 April 2008. The same order stipulates that for financial reporting purposes, all the activities of MPV are to continue to be kept by DOT until 30 June 2008 as if the functions had not been transferred.

As at 1 July 2008, the assets and liabilities detailed below will transfer to DIIRD as contributed capital. This transaction will be recorded in the 2008-09 financial report.

Transfer of Major Projects Victoria to the Department of Innovation, Industry and Regional Development $’000

Assets Cash at bank 42,432 Debtors 8,441 GST recoverable 2,380 Grants receivable 4,053 Prepayments 27 Land inventory 64,387 Intangible asset (deferred expenditure) – current 955 Land at valuation 130,000 Buildings at valuation 4,556 Infrastructure at cost 31,080 Plant and equipment at cost 59 Buildings leasehold improvements 1,200 Infrastructure asset under construction 2,389 Intangible asset (deferred expenditure) – non-current 46,467

Liabilities Creditors (464) Deposits repayable (35,969) GST payable (2,414) Accrued expenses (6,172) Provision for annual leave – current (313) Provision for long service leave – current (228) Other employee entitlements – current (29) Provision for long service leave – non-current (139) Net assets for transfer to DIIRD 292,698

169 170 Department of Transport Annual Report 2007-08 Contents

172 Statutory Authorities 174 Statutory Authorities’ Executive Numbers 175 DOT People Profile 176 Employee Relations 179 DOT Audit Committee 180 Budget Portfolio Outcomes 188 Output Performance Measures 209 Better Roads Victoria Trust Account 210 Environmental Performance Report 216 Whole of Government Reporting – Multicultural Affairs 220 Whole of Government Reporting – Women’s Affairs 221 Legislation (administrated as at 30 June 2008) 224 Whistle Blowers Protection Act 2001 224 Freedom of Information Act 1982 225 Victorian Industry Participation Policy 226 National Competition Policy Compliance 227 Secretary’s Attestation of Risk Management 227 Building Act Compliance 228 Disclosure of Major Contracts Compliance 228 Consultant Engagements 228 Major Publications 229 Other available information 229 DOT contact information 230 Disclosure Index

Appendices

171 Statutory Authorities

The following authorities are aligned Port of Melbourne Corporation Southern and Eastern Integrated to the Department of Transport and Transport Authority play an integral role in the delivery Port of Melbourne Corporation of safe and efficient transport (PoMC) is the strategic manager SEITA was established by the infrastructure and services. Each of the operation and development Southern and Eastern Integrated authority publishes an annual report of the Port of Melbourne. PoMC is Transport Act 2003, as a single which includes key achievements charged with ensuring this is done purpose statutory authority to for 2007-08. in an economically, socially and facilitate delivery of Australia’s largest environmentally sustainable manner. urban road project, EastLink, on behalf of the state. Port of Hastings Corporation Melbourne is Australia’s largest container and general cargo port, Under the role and responsibilities as The Port of Hastings Corporation handling around 36 percent of the described in the legislation, SEITA is (PoHC) was formed in January 2004. nation’s container trade. Servicing an required to: The State Government appoints the area that stretches beyond the port’s chairman and directors of the board. »» facilitate timely delivery of the home state of Victoria to include EastLink Project PoHC supervises the Port , and the Management Agreement with Asciano southern New South Wales , »» ensure compliance with contractual Ltd through its subsidiary Patrick the Port of Melbourne is arguably and legislative requirements the most significant trade hub in the Ports – Hastings who operate the »» engage with the community and country. port. The current Port Management stakeholders Agreement runs until June 2012 with A major strategic asset of the a further five year option available to »» manage government processes. Victorian economy, the port is an the port operator until 30 June 2017. important trading gateway handling Southern Cross Station Authority PoHC is also responsible for guiding over $90 million in exports on the future development of the average every day and generates The Southern Cross Station port in line with its status as the employment for tens of thousands of Authority’s (SCSA) core function is to preferred container port once the people directly and indirectly through monitor and assess the performance Port of Melbourne reaches capacity. the wider logistics industry across of Southern Cross Station Pty Ltd This includes growing the port metropolitan Melbourne and (SCSPL, the station operator) on in an economically, socially and regional Victoria. behalf of the state under the 30 environmentally sustainable way. year Partnerships Victoria or Public More than 3,500 commercial ship Private Partnership (PPP) contract. If directed by Order of the Governor visits to the port each year provide The aim of this is to ensure that the in Council, PoHC can act as port access to more than 300 ports of call state government’s asset, Southern operator or channel operator for any across the globe. Cross Station, is maintained and period during which there may not be operated at a standard that meets an agreement in force for operation of the expectations of the state and the the port or channels. travelling public and to ensure that the state captures the full value of the station redevelopment PPP.

The SCSA’s other key responsibilities include the management of the station precinct, the undertaking of various capital projects throughout the station precinct, managing customer service, operating Green Star Parcel Services for medical customers and day to day corporate management to ensure all these functions are successfully delivered.

172 Department of Transport Annual Report 2007-08 Transport Ticketing Authority VicTrack also owns significant V/Line telecommunications assets, including The TTA manages all aspects of the metropolitan and regional optical fibre V/Line Passenger Corporation, state’s involvement in the existing and copper networks as well as a a statutory authority incorporated public transport ticketing system. TTA wireless network in country Victoria. under the Rail Corporations Act, is also responsible for procuring and is the owner and sole shareholder overseeing the delivery and operation VicTrack has two broad categories of V/Line Passenger Pty Ltd. of the New Ticketing System (NTS), of activity: referred to as myki. V/Line Passenger Pty Ltd operates »» custodial – fulfilling the under a franchise agreement with to organisation’s obligations as an the Director of Public Transport. VicRoads owner of infrastructure and rolling VicRoads’ role is to deliver social, stock V/Line is the largest provider of economic and environmental benefits passenger rail and coach services to »» commercial – seeking to add value regional Victoria. It is responsible for to communities throughout Victoria to its assets and generate returns the operation of passenger transport by managing Victoria’s road system to enable greater investment in, services, the staffing of stations and and its use as an integral part of the and improvements to, Victoria’s the sale of tickets through its own overall transport network. public transport system and other staff and agents. Some coach services government services. VicTrack are provided under contract with private coach operators. VicTrack, on behalf of the state, Victorian Regional Channels owns the majority of Victoria’s rail Authority (VRCA) V/Line is also responsible for the operation and maintenance of 4,100 infrastructure, land and passenger The VRCA manages the commercial rolling stock. A large proportion kilometres of rail track across Victoria navigation of the waters within the and into New South Wales. This of these assets are leased to the Geelong Port and manages channel Director of Public Transport. In turn, includes track used by V/Line’s own licences for the ports of Hastings and passenger rail services, as well as the Director of Public Transport sub- Portland. leases the infrastructure/rolling stock an extensive freight network. to various transport operators and track access providers. VicTrack has no direct involvement in the provision of passenger or freight transport services.

173 Statutory Authorities’ Executive Numbers

Organisation Reported Department 2008 2007 Change 2008 2007 2008 2007 F M V F M V F M V Port of Melbourne Corporation Yes Yes DOT DOI 2 5 5 +2 +0 +0

Port of Hastings Corporation Yes Yes DOT DOI 1 1 +0 +0 +0 Southern and Eastern Integrated Yes Yes DOT DOI 2 5 1 3 6 1 –1 –1 +0 Transport Authority Southern Cross Station Authority Yes Yes DOT DOI 1 1 +0 +0 +0 Transport Ticketing Authority Yes Yes DOT DOI 1 3 1 4 +0 –1 +0 V/Line Passenger Corp. Yes Yes DOT DOI 2 7 9 26 –7 –19 +0 VicRoads Yes Yes DOT DOI 11 55 4 12 56 5 –1 –1 –1 Victorian Rail Track Yes Yes DOT DOI 1 4 2 4 1 –1 +0 –1 Victorian Regional Channels Yes Yes DOT DOI 3 3 +0 +0 +0 Authority VicUrban No Yes DPCD DOI 2 5 –2 –5 +0 Total 20 83 5 30 110 7 -10 -27 -2 Grand total 103 140 -37

Note: VicUrban which was reported here in 2007 is now a DPCD portfolio agency. V/Line Passenger Pty Ltd 2008 tally has been reviewed and excludes those not considered part of V/Line Executive Team. F-Female, M-Male, V-Vacant

174 Department of Transport Annual Report 2007-08 DOT People Profile

Table 1. People profile as at 30 June 2008

Ongoing Fixed Term and Casual Total Total Number Full Time Part Time FTE* Headcount FTE Headcount FTE (headcount) June 2008 1,007 935 72 985.83 122 120.9 1,129 1,106.7 June 2007 894 837 57 877.20 155 150.8 1,049 1,028.0 * Full time equivalent

June 2008 June 2007 Ongoing Fixed Ongoing Fixed Term and Term and Casual Casual Number FTE FTE Number FTE FTE (headcount) (headcount)

Gender Male 557.0 552.3 62.2 499 497.0 94.6 Female 450.0 433.5 58.7 395 380.2 56.2

Age Under 25 46.0 46.0 20.8 40 40.0 17.0 25-34 262.0 258.3 42.6 225 221.0 47.1 35-44 269.0 258.7 25.2 239 231.4 36.8 45-54 274.0 270.5 20.8 257 254.4 37.5 55-64 144.0 140.3 10.3 126 123.3 11.2 Over 64 12.0 12.0 1.2 7 7.0 1.2

Classification VPS 1 5.0 5.0 2.0 2 2.0 4.0 VPS 2 53.0 50.6 21.8 54 52.4 13.4 VPS 3 231.0 228.3 28.0 190 186.9 34.1 VPS 4 158.0 155.4 29.9 141 138.7 20.5 VPS 5 216.0 209.0 20.0 187 183.3 38.2 VPS 6 278.0 271.6 17.2 256 250.1 31.6 STS 7.0 7.0 0.0 8 8.0 1.0 Executives 43.0 43.0 0.0 56 55.7 0.0 Other 16.0 15.8 2.0 0 0.0 8.0 Totals 1,007 1,106.7 894 1,028.0

175 Employee Relations

OH&S OH&S and ensure that DOT is meeting Diesel fumes were emanating its requirements under section from the cranes on the adjacent DOT has developed a cooperative, 23 of the Occupational Health and construction site. Investigation consultative relationship with all Safety Act 2004. The management of discovered the fumes were entering our people to achieve the highest contractor OH&S issues includes the through the air intake in the plant standards of occupational health requirement to report incidents to the room. Negotiations with Brookfield and safety. department in certain time frames, Multiplex resulted in an agreement to include safety management that cranes responsible for the fumes As part of our psychological plans with tender bids, and regular are now operated when the fumes health program, we have delivered scheduled audits of contractors’ cannot affect DOT. two initiatives. “Demystifying safety management plans. Psychological Health” is an awareness The glare from windows caused program for managers about The DOT Occupational Health problems for people located on the responding to distressed employees and Safety Committee continues Exhibition and Bourke Street sides and dealing with psychological ill- to meet quarterly and act as a of the building. DOT, in consultation health in the workplace, and “Building formal mechanism for consultation with staff, provided a double blind for Resilience and Resolution Skills” and participative resolution of the affected areas to alleviate this provides additional resources for staff. department-wide matters. Managers, problem. in consultation with health and safety A set of online tools and information representatives, continue to conduct Manual handling training has been was published on DOT’s intranet. regular physical workplace audits to provided to the Corporate Centre to This includes general information on ensure there are no unnecessary risks combat risks associated with room psychological health, early warning to DOT people and visitors. set up, which involves rearranging signs and symptoms. There is also tables, securing tables into place, an online manager’s tool kit available The online reporting system used allocating seating, setting up of media that outlines action to take if an to report workplace incidents and equipment and utilising a wall dividing employee is distressed, and practical identify hazards has been upgraded system. advice on simple ways to identify to ensure appropriate measures are and reduce psychological risk in the put in place to provide the highest Workstation ergonomic training workplace. It includes information level of protection against risks. was provided to health and safety on a manager’s hotline, offering representatives to refresh their specialist advice by an external The number of standard claims knowledge and enable them to provider. lodged with the WorkCover insurer perform workstation assessments for 2007-08 was nine and although inhouse. A pilot of the Managing Psychological this is an increase from the previous Risks workshops was conducted for year, the total ‘time lost’ claims Various activities have been provided Public Transport Safety Victoria (due remained stable at three. The overall throughout Occupational Health to the nature of work, a pre-identified payments that were made on those and Safety Week to increase self- high risk area for psychological injury) claims are significantly less than awareness revolving around health in September 2007. The workshops the previous year – a 21.58 percent checks. included practical guidance on reduction. This indicates better return carrying out an organisational risk to work and case management of Employee health assessment and developing action those claims. and wellbeing plans for managing psychological risks in the workplace. The move into our new premises at DOT’s employee health and wellbeing 121 Exhibition Street posed some initiatives continue to deliver benefits A set of contractors’ guidelines was health and safety challenges. These to all employees. developed for DOT contract and issues have been dealt with in a purchasing managers. The guidelines consultative way. DOT identified a need to support include practical information and parents in the organisation and advice on how to manage contractors’ engage with those currently on

176 Department of Transport Annual Report 2007-08 parental leave. As a result, a luncheon Reviewing personal Review work is currently being and presentation on “Helpful undertaken to make sure the Strategies for Busy Parents” and grievances department’s suite of learning and “Sleeping Soundly” was delivered. DOT’s Grievance and Review of development programs are aligned Actions policies ensure DOT people with the behavioral and technical To increase awareness of the have an avenue for redress against capabilities required within DOT availability of flexible work options and treatment they see as unfair or now and into the future. family friendly work practices, a guide unreasonable. The People and to “Working Flexibly” was launched. Organisational Development Division Indigenous programs The Flex Ability publication outlines continues to work proactively across the benefits of increased productivity for whole of government DOT to resolve workplace issues and heightened motivation for DOT reporting before or as they arise without the people who may enter an alternative need for formal grievance action. working arrangement with their DOT Indigenous manager. Upholding ethical conduct Scholarship Program As part of DOT’s commitment to This scholarship program was achieving a motivated organisation, DOT’s Ethics at Work and Managing introduced in 2006 to support an a gymnasium subsidy continues to Diversity policies together with the Indigenous student at tertiary or TAFE be offered to all ongoing and fixed updated Code of Conduct for Victorian level study. The 2006 scholarship term employees. Public Sector Employees are integral student successfully obtained ongoing to the way DOT people conduct employment within the department. DOT, in conjunction with Camp business. Australia, conducts a subsidised In 2007, the scholarship was work-based school holiday program People management awarded to two postgraduate during the school holidays. practices students completing their Master of Business Management. In 2008, Selecting on merit All DOT people policies are regularly two scholarships were awarded to reviewed and are available online to students studying Commerce/Law DOT’s recruitment policies and all of DOT and new starters as part and Commerce. guidelines ensure that all employment of the induction process. The People decisions and workplace practices and Organisational Division provides Cultural awareness sessions are fair, equitable, based on merit and advice and consults with all line areas comply with government policy and to ensure policies are adhered to and These sessions continue to help legislation. taken into account as part of normal develop a greater awareness among business practice. DOT people about the issues facing Managing and our Indigenous employees. These valuing diversity Performance management are joint awareness sessions with VicRoads and include a guided and development DOT’s core values include valuing bus tour around Melbourne’s employees’ diversity and respecting The DOT People Capability Indigenous sites. each other’s knowledge, skills and Framework was updated as part of Sessions are offered to DOT people abilities. This is reflected in the DOT’s performance management each month. Diversity, Equality and Inclusion Plan, and development system. The system incorporating the Disability Action is an essential tool for ensuring Plan. organisational performance is aligned to individual, team and organisational Implementation of the Diversity, outcomes. The system has identified Equality and Inclusion Plan continued the need to increase capability which during 2007-08 with a focus on the has placed an even greater emphasis Disability Action Plan and building on performance management and relationships with Indigenous development. communities.

177 NAIDOC Week activities Multicultural affairs Scholarships

DOT hosted the third annual art DOT developed a Diversity Calendar The Women in Science, Engineering, exhibition showcasing work by for 2007 and 2008. This calendar Technology or Construction students from the Indigenous Art Unit, reflects and celebrates the diversity Scholarship was developed in 2006. School of Art, RMIT University. All and multiculturalism of DOT and the As women are under-represented DOT people were also invited to attend Victorian community. The calendar in these fields, these scholarships a presentation by a member of the contains major religious festivals were introduced to support women ‘Stolen Generation’. including days of strict religious currently working in or aspiring to observance and other days of cultural work in these fields. Advertisement for DOT positions or Indigenous significance for in Koori Mail Australia. In 2008, DOT offered three $10,000 scholarships to female, full time DOT continues to advertise positions Youth or part time students starting or in the Koori Mail newspaper to help completing postgraduate studies in raise the profile of DOT in Indigenous DOT continues to build and maintain science, engineering, technology or communities and encourage a successful Youth Employment construction related fields. Indigenous applicants. Scheme which provides traineeships to disadvantaged young Victorians to The Women in Freight, Logistics and DOT funded Shepparton VicRoads enable them to enter the workforce Marine Management Scholarship, traineeship and build sustainable and meaningful which continued to promote the careers. recruitment and advancement of In 2007, DOT and VicRoads jointly women in management positions created an Indigenous traineeship Women’s affairs within the freight, marine and logistics position within the VicRoads industry, was awarded in 2007. The Shepparton office. The traineeship DOT provides funds to support $10,000 scholarship is offered to was created to support regional the Office of Women’s Policy’s female, full or part time students Indigenous employment, this Women’s Community Leadership starting or completing a Masters, was based on the model used in Grants program which specifically Ph.D. or postgraduate degree in Bairnsdale in 2006. supports Indigenous women in the relevant fields. development of community leadership DOT/VicRoads Indigenous skills. employee conference The first joint DOT/VicRoads Indigenous employee conference was held in December 2006 with 12 attendees. The conference aim was to create a support network between the Indigenous employees at DOT and VicRoads. As the network has grown, two conferences were held in 2007 and another in 2008. In total, four conferences have been held, both regionally and metropolitan-based.

178 Department of Transport Annual Report 2007-08 DOT Audit Committee

The Audit Committee was The roles and responsibilities of the established to assist the Secretary Audit Committee include: in the governance and oversight »» overseeing the department’s responsibilities of the department’s financial performance and reporting financial performance and reporting, and providing advice on any unusual the internal control environment, the or significant transactions or risk management framework and policies the department’s compliance with legislation and regulations. »» overseeing the work, performance and independence of the The Audit Committee provides department’s outsourced internal independent, risk-based and objective audit provider assurance and recommendations to the Secretary. It is supported in »» overseeing the development and this task by a secretariat, led by the implementation of internal audit Director Audit and Assurance, who plans reports to the Secretary, and also »» monitoring management’s through an outsourced internal audit implementation of internal audit provider. recommendations and advising the Secretary on significant issues The appointment of an Audit identified in audit reports Committee and the maintenance of an internal audit function is a »» overseeing the department’s risk requirement of the department’s management practices, including governance arrangements under evaluating whether management the Financial Management Act 1994 has in place a comprehensive risk and the Standing Directions of the and fraud management framework Minister for Finance. »» overseeing the department’s compliance and control environment.

179 Budget Portfolio Outcomes

The Budget Portfolio Outcomes Financial transactions and balances statements provide a comparison are classified into either controlled or of the actual financial results for all administered in accordance with AAS entities within the Transport budget 29 Financial Reporting by Government portfolio with the 2007-08 adjusted Departments and as agreed with the estimates published in Budget Paper Treasurer for the purposes of Budget No. 4 – 2008-09 Budget Estimates. The Paper No. 4. 2007-08 adjusted estimates reflect the original 2007-08 Budget adjusted for Budget Portfolio Outcomes machinery of government changes. statements are not prepared on the same basis as the department’s The statements are prepared on financial report and are not subject a consolidated basis. Entities to audit by the Victorian Auditor- are consolidated within a budget General’s Office. portfolio when 50 percent 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: »» Department of Transport »» VicRoads »» Southern and Eastern Integrated Transport Authority.

180 Department of Transport Annual Report 2007-08 Statement of Financial Performance for the year ended 30 June 2008

2007-08 2007-08 Variation Notes Actual Adjusted Budget ($ million) ($ million) (%)

Revenue from ordinary activities Output appropriations 3,994.0 3,985.8 0 Special appropriations 1.8 1.7 4 Resources received free of charge or for nominal consideration 76.7 .. .. 1 Sales of goods and services 249.5 166.4 50 2 Commonwealth grants 2.9 4.4 (35) Taxes ...... Fines and fees 75.6 67.6 12 Other revenue and revenue from other parties 323.2 275.2 17 3 4,723.6 4,501.1 5

Expenses from ordinary activities Employee entitlements 317.1 291.9 9 Depreciation and amortisation 366.1 358.9 2 Resources provided free of charge or for nominal consideration 76.5 .. .. 4 Grants and other payments 1,475.0 1,447.6 2 Capital asset charge 70.8 70.8 0 Supplies and services 1,905.2 1,926.6 (1) Financing costs 5.7 6.5 (13) Other expenses 38.2 .. .. 5 4,254.5 4,102.3 4 Net result for the reporting period 469.1 398.8 18

1. 2007-08 actual figure includes assets transferred to VicRoads from ConnectEast and various water authorities. 2. Variation primarily reflects additional activities undertaken by VicRoads for external clients and the impact of the increase in public transport patronage. 3. Variation reflects sales revenue from the Kew Residential Redevelopment and the impact of the increase in public transport patronage. 4. 2007-08 actual figure includes the transfer of assets associated with the Robinvale Bridge project from VicRoads to NSW RTA and various road assets provided to local government. 5. 2007-08 actual figure includes the one-off expensing of land under roads by VicRoads, which occurs when land is utilised for road development purposes.

181 Statement of Financial Position as at 30 June 2008

2007-08 2007-08 Variation Notes Actual Adjusted Budget ($ million) ($ million) (%)

Current Assets Cash assets 447.2 336.2 33 1 Other financial assets 50.0 50.0 0 Receivables 704.0 577.1 22 2 Inventories 68.3 5.6 1,120 3 Prepayments 5.1 6.8 (25) Other 1.0 8.9 (89) Total current assets 1,275.6 984.6 30

Non-current assets Receivables 0.2 0.2 (7) Inventories ...... Other financial assets ...... Property, plant and equipment 22,712.5 20,151.8 13 4 Intangible assets 22.5 18.8 20 Other 53.9 4.2 1,183 5 Total non-current assets 22,789.1 20,175.0 13 Total assets 24,064.6 21,159.6 14

Current liabilities Payables 848.9 573.7 48 6 Interest bearing liabilities 1.4 0.8 70 Provisions 90.0 86.6 4 Other 52.4 36.4 44 Total current liabilities 992.6 697.5 42

182 Department of Transport Annual Report 2007-08 2007-08 2007-08 Variation Notes Actual Adjusted Budget ($ million) ($ million) (%)

Non-current liabilities Interest bearing liabilities 2.0 8.1 (75) Provisions 8.7 7.6 14 Other 221.5 229.7 (4) Amounts owing to other departments ...... Total non-current liabilities 232.2 245.4 (5) Total liabilities 1,224.8 942.9 30 Net assets 22,839.8 20,216.7 13

Equity Contributed capital 14,833.9 15,028.0 (1) Reserves 7,747.0 5,000.0 55 4 Accumulated surplus 259.0 188.5 37 Total Equity 22,839.8 20,216.5 13

1. Represents commitments made for which the timing of the cash payment will occur in a future period. 2. Variation reflects higher level of project activity and output revenue earned by DOT from government where the timing of the cash payments will occur in a future period. 3. Reflects the transfer of assets associated with the Kew Residential Redevelopment from the Department of Human Services to Major Projects Victoria. 4. Variation primarily reflects the revaluation of VicRoads’ infrastructure and land assets. 5. 2007-08 actual figure includes Parkville Gardens assets held by Major Projects Victoria. 6. Variation reflects additional project activity including the Channel Deepening Project.

183 Statement of Cash Flows for the year ended 30 June 2008

2007-08 2007-08 Variation Notes Actual Adjusted Budget ($ million) ($ million) (%)

Cash flows from operating activities Receipts from Government 3,973.2 3,967.6 0 Receipts from other entities 449.5 427.3 5 Payment of supplies, grants and employees (3,611.1) (3,621.4) (0) 811.6 773.5 5 Interest received 7.8 0.9 761 Capital asset charge (70.8) (70.8) 0 Financing costs expense (5.7) (6.5) (13) Other receipts 82.6 60.6 36 1 Net cash inflow from operating activities 825.5 757.7 9

Cash flows from investing activities Payments for property, plant and equipment (921.0) (983.0) (6) Proceeds from sale of property, plant and equipment 11.4 16.2 (30) Payments for investments 0.0 .. .. Proceeds from sale of business assets (repayment of) loans by other entities (2.5) .. .. Net cash (outflow) from investing activities (912.0) (966.8) (6)

184 Department of Transport Annual Report 2007-08 2007-08 2007-08 Variation Notes Actual Adjusted Budget ($ million) ($ million) (%)

Cash flows from financing activities Net proceeds from capital contribution by State Government 69.5 75.3 (8) Net proceeds of borrowings (5.6) .. .. Net cash inflows (outflow) from financing activities 63.9 75.3 (15) Net increase (decrease) in cash held (22.6) (133.8) (83) Cash at the beginning of the financial year 469.8 469.8 .. Cash at the end of the financial year 447.2 335.9 33

1. Variation primarily reflects sales revenue associated with the Kew Residential Redevelopment.

185 Administered Items Statement as at 30 June 2008

2007-08 2007-08 Variation Notes Actual Adjusted Budget ($ million) ($ million) (%)

Administered revenue Appropriations - payments ...... made on behalf of the state Special Appropriations ...... Resources received free ...... of charge or for nominal consideration Sale of goods and services 1.4 0.7 97 Commonwealth grants 439.5 394.7 11 1 Other grants 16.4 .. .. 2 Taxes 1,368.4 1,373.2 (0) Fines 32.5 15.1 115 3 Fees 53.3 52.1 2 Other 17.8 44.3 (60) 4 Total administered revenue 1,929.3 1,880.1 3

Administered expenses Expenses on behalf of the state .. 6.1 (100) 5 Resources provided 274.1 .. .. 6 free of charge Grants and other payments 16.4 .. .. 2 Other expenses from ...... ordinary activities Payments into the 2,275.2 2,063.6 10 consolidated fund Total administered expenses 2,565.7 2,069.7 24 Revenue less expenses (636.4) (189.6) 236

186 Department of Transport Annual Report 2007-08 2007-08 2007-08 Variation Notes Actual Adjusted Budget ($ million) ($ million) (%)

Administered assets Cash assets 5.1 7.8 (35) Receivables 213.5 495.2 (57) 5 Other financial assets ...... Inventories ...... Prepayments ...... Property, plant and equipment ...... Intangible assets ...... Other financial assets ...... Total administered assets 218.6 503.0 (57)

Administered liabilities Payables 7.0 10.7 (34) Interest bearing liabilities ...... Provisions ...... Amounts owing to ...... other departments Other 317.6 425.6 (25) 5 Total administered liabilities 324.6 436.3 (26)

1. Variation reflects additional funding provided by the Commonwealth for the acceleration of AusLink road and rail projects. 2. Reflects funding associated with natural disaster relief recovery. 3. Variation primarily reflects change in accounting treatment for public transport infringements. 4. Variation primarily reflects the revised revenue schedule associated with the Parkville Gardens project. 5. Variation primarily reflects change in accounting treatment for CityLink concession notes. 6. Reflects the transfer of assets to the Melbourne City Council and the Australian Rail Track Corporation, and the transfer of social housing units to Port Phillip Housing Association.

187 Output Performance Measures

The following section provides details of the outputs provided to government during 2007-08, including performance measures and costs for each output.

Machinery of government changes to the department’s output structure in 2007- 08, which were effective 8 August 2007, resulted in the following departmental performance measures being transferred:

Public Construction and Land Development Transit Cities projects underway Transit Cities projects progressed in accordance with agreed plans Delivery of Transit Cities projects complies with agreed plans Transit Cities projects progressed in accordance with agreed timeframes

These performance measures are reported in the 2007-08 Annual Report of the Department of Planning and Community Development.

Revenues and expenses associated with activities transferred out of DOT have been recorded in the financial report for the period 1 July 2007 to 31 August 2007.

Output costs for 2007-08 have been prepared on an Australian equivalents to International Financial Reporting Standards basis.

Notes are provided to explain elements of measurements and major variations in performance against 2007-08 targets.

Abbreviations used in tables na not applicable nm new measure .. zero or rounded to zero

188 Department of Transport Annual Report 2007-08 Public safety and security

These outputs contribute to the achievement of the key government outcome of building friendly, confident and safe communities.

This is done by delivering initiatives and regulatory activities that improve safety in the public transport, road, and marine sectors and reduce the frequency, severity and cost of accidents and incidents. It also covers activities aimed at maintaining the security of critical infrastructure and the preparedness to respond to emergencies involving this infrastructure.

Reducing the state’s road toll is a high priority for the government. A key measure of success will be the reduction of serious injuries and deaths related to road crashes. Key departmental activities to achieve this outcome include continuing to implement arrive alive! road safety initiatives to change road user behaviour, and improving the safety of road infrastructure through initiatives such as the Safer Road Infrastructure Program.

Similar regulatory frameworks and initiatives are in place to improve safety on public transport, and on the state’s waterways relating to both commercial and private recreational vessels. The independent Office of the Chief Investigator Transport and Marine Safety Investigations, will enhance the safety programs already in place. Security of critical infrastructure is also a high priority.

189 Public Transport Safety and Regulation Work with industry stakeholders to achieve the highest standards of safety practicable for train, tram and bus services in Victoria and implement initiatives to achieve the government’s public transport safety objectives. Monitor compliance with public transport safety management systems through rigorous audits and inspections, investigate accidents and incidents, and implement corrective actions.

Major outputs/deliverables Unit of 2007‑08 2007‑08 Performance Measures Measure Target Actual

Quantity Train and tram safety compliance inspections (unannounced audits) undertaken where an Improvement Notice or non-conformance/ compliance is issued at an audit percent 100 1001 Bus safety mechanical inspections number 50 531 Public railway crossings upgraded number 40 461

Quality Train and tram safety: »» improvement Notices addressed within agreed timeframes percent 100 1001 »» audit non conformance/compliance addressed within agreed timeframes percent 100 1001 »» application for a material change (to a safety management system of an accredited rail organisation) reviewed within 30 days percent 100 na2 Bus safety: »» audit non-conformance/compliance addressed within agreed timeframes percent 100 1001

Timeliness Train and tram safety: all accredited organisations audited annually percent 100 1001 Bus safety: all accredited organisations audited every two years3 percent 50 501

Cost Total output cost $ million 20.0 35.84

1. The higher number of upgrades reflects the government’s commitment to improving level crossing safety across Victoria. 2. This measure is discontinued as under the current legislation, the , the Director of Public Transport Safety Victoria now approves ‘variations’ to operators’ existing terms and conditions of accreditation. 3. The Public Transport Competition Act 1995 requires operators of vehicles with more than 12 seating positions (including the driver) that are used to carry passengers for other than domestic purposes to be accredited. There are approximately 1,600 operators in Victoria. 4. Includes additional funding approved post state budget for Level Crossing Safety Package 2007.

190 Department of Transport Annual Report 2007-08 Road Safety and Regulation Provide a road safety program that incorporates the ‘Safe System’ approach. This approach is based on the key components of safer vehicles, safer road infrastructure and safer speeds. Essential supporting elements of the ‘Safe System’ include controlling admittance to the system, understanding crashes and risk, education and information to support road users, and legislation and enforcement of road rules.

Major outputs/deliverables Unit of 2007‑08 2007‑08 Performance Measures Measure Target Actual

Quantity Road Safety Projects/Initiatives: »» safe roads number 120 1515 »» safe vehicles6 number 1 11 »» safe road users number 34 317

Quality Projects completed within agreed scope and standards percent 100 1008

Timeliness Programmed works completed within agreed timeframes percent 100 1008

Cost Total output cost $ million 84.9 135.18

5. Works have been accelerated under the Safer Road Infrastructure Program. 6. Safe Vehicles typically involves recurrent activities rather than projects. 7. Remaining projects are well progressed with completion expected in early 2008-09. 8. Variation primarily reflects reclassification of activities between operating and capital.

191 Vehicle and Driver Regulation9

Provide a vehicle registration and driver licensing service that contributes to the 9. General references in this output to ‘driver integrity of the road user environment by ensuring the registration of trained licences’, ‘vehicle registration’ and ‘other drivers and roadworthy vehicles, and the ability to easily trace missing vehicles. driver and licensing procedures’ relate to all non‑commercial passenger vehicles and Administer, regulate and monitor taxis, hire cars, special purpose vehicles, drivers. Performance measures relating restricted hire cars, tow trucks and the driving instructor industry. to commercial passenger vehicles and drivers are worded accordingly and cover Major outputs/deliverables Unit of 2007‑08 2007‑08 areas such as taxis, hire cars and tow truck operations. Performance Measures Measure Target Actual 10. An unexpected reduction of licence cancellations and suspensions resulted in Quantity actuals being higher than target. Driver licences renewed number (‘000) 284 33210 11. The number of requests from CityLink was higher than expected. New driver licences issued number (‘000) 148 15410 12. The variance is primarily due to the actual New vehicle registrations issued number (‘000) 450 48810 six monthly renewal take-up rate being slightly lower than expected. Vehicle and driver information requests processed number (‘000) 2,173 2,62111 13. The VTD has recently increased Taxi Safety Officer staff numbers which has enabled 10 Vehicle registration transfers number (‘000) 840 844 an increased number of inspections to be Vehicle registrations renewed number (‘000) 4,374 4,31412 undertaken. 14. The result reflects that many minor Commercial passenger vehicles infringements, which previously resulted in audited – taxis, hire cars, etc. number 10,000 11,87913 only warnings being given, are now treated as breaches of quality standards as well Quality as a focus on inspecting taxis with obvious defects. 10 Currency of registration and licensing records percent >99 99 15. All taxi service complaints received are Taxis conform to quality standards percent >80 7014 investigated. 16. Taxi users are concerned with service Taxi service complaints investigated and closed15 number 1,700 2,55716 punctuality, availability at peak periods (e.g. Friday and weekends) and passenger safety. Customer satisfaction index: taxi services17 score >64.4 58.216 Taxi accreditation will improve service standards across the industry. Increasing Timeliness awareness among taxi passengers on how Customers served within 10 minutes in to lodge complaints has contributed to an VicRoads licensing and registration offices percent 80 7018 increase in the number of complaints. 17. The Director of Public Transport Calls answered within 30 seconds in VicRoads call centres percent 80 4818 commissions monthly surveys of both users and non-users of public transport to Taxi services complaints investigated measure satisfaction with services. 19 and closed within 30 days of receipt percent >60 44 18. The variance is due to an increasing volume and complexity of enquiries and Cost transactions. Total output cost $ million 131.7 138.110 19. Major cause of delays was related to resource and capacity issues and these have now been addressed and workflow improved. There is a backlog of complaints and these are being systematically investigated and closed.

192 Department of Transport Annual Report 2007-08 Marine Safety and Regulation Develop and administer the policy and 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.

Major outputs/deliverables Unit of 2007‑08 2007‑08 Performance Measures Measure Target Actual

Quantity Commercial vessels surveyed annually20 percent 100 96.410 Recreational vessel compliance with registration requirements21 percent 96 95.810 Safety audits performed on vessels: » commercial vessels20 percent 15 39.422 » recreational vessels23 percent 5 5.410 All accredited training providers audited percent 100 10010

Quality Victorian waterways audited to assess adequacy of vessel operating and zoning rules24 percent 15 20.510 Recreational boat operator compliance with licensing requirements25 percent 100 97.210

Cost Total output cost $ million 19.9 14.226

20. There are approximately 1,500 commercial vessels under survey in Victoria. 21. Based on data provided by Victorian Water Police. 22. Result reflects additional effort directed to safety audits. 23. There are approximately 165,000 registered recreational vessels in Victoria, with 8,250 to be audited. 24. There are 158 designated waterways in Victoria. 25. There are approximately 260,000 recreational boat licenses currently held by Victorians. 26. Variation reflects changes in the timing of payments under the Boating Safety and Facilities Program.

193 Transport and Marine Safety Investigations Conduct independent no-blame safety investigations of public transport and marine accidents and incidents to determine causal factors and identify issues that may require review, monitoring or consideration by stakeholders.

Major outputs/Deliverables Unit of 2007‑08 2007‑08 Performance Measures Measure Target Actual

Quantity Proportion of notified accidents with passenger fatalities and serious passenger injuries investigated27 percent 9028 10010 Proportion of accident/incidents involving identified multiple safety system failures investigated29 percent 9028 10030

Timeliness Accidents/incidents assessed within two days of notification to determine need for detailed investigation percent 10010 10010 Investigation of accidents/incidents completed within agreed timeframes31 percent 8010 2832

Cost Total output cost $ million 1.810 1.810

27. A serious injury means an injury that requires, or would normally require, admission to hospital. 28. Some investigations of accidents that occur in Victoria fall within the jurisdiction of the Federal Australian Transport Safety Bureau. The Chief Investigator, Transport and Marine Safety Investigations would not normally conduct an investigation of accidents investigated by that Federal agency. 29. Safety systems are a combination of policies, processes and procedures used by organisations to guard against unwanted safety outcomes during operations. 30. In 2007-08, 100 percent of multiple safety system failures were investigated, due to the fact that the failures differed in nature. Where a number of accidents have the same multiple safety system failures, a proportion of those accidents are investigated. 31. Investigations are categorised as Level One for those involving large scale losses of life and/or equipment and Level Two for lesser events. Level one investigation will be completed in 52 weeks, and Level Two events in 26 weeks from the time of notification. 32. For 2007-08, the level one incident investigation report for Kerang was completed 18 weeks earlier than the 52 week timeframe. This resulted in the reprioritisation and delay of a number of the 15 level two category reports for lesser events. For 2008-09, this measure has been replaced with a new measure which is a more effective measurement of performance against benchmark timeframes and is based on a weighted average index across all investigations undertaken.

194 Department of Transport Annual Report 2007-08 Infrastructure Security and Emergency Management Ensure there is adequate management of security risks and emergencies within critical infrastructure sectors, including public transport, the road and rail system, ports and marine environments, and to assist the Department of Primary Industries within energy industries. Provide strategic advice to government and coordination across sectors to achieve sufficient capacity and preparedness to respond in emergency situations.

Major outputs/deliverables Unit of 2007‑08 2007‑08 Performance Measures Measure Target Actual

Quantity Major infrastructure emergency exercises coordinated number 2 133 Minor infrastructure emergency exercises coordinated number 3 634 Strategic policy briefings to the portfolio Ministers number 30 2710 Participation in strategic security and emergency management coordination sessions number 32 9635

Quality Review of risk management plans of declared essential services percent 85 9010 Supervise exercises to test declared essential services risk management plans percent 100 10010 Reported marine pollution incidents responded to and resolved in accordance with the Victorian State Marine Pollution Response Plan percent 100 10010

Timeliness Agreed recommendations initiated in response to infrastructure security reviews percent 100 10010 Marine pollution response action initiated within four hours of notification of an incident percent 100 10010

Cost Total output cost $ million 4.4 4.510

33. One exercise has been rescheduled to occur in 2008-09. 34. Additional exercises conducted in conjunction with Commonwealth Department of Infrastructure, Transport, Regional Development and Local Government. 35. The higher level of activity reflects participation in a wider range of strategic national and state groups and committees.

195 Public Transport Services

These outputs contribute to the achievement of the following key government outcomes: » growing and linking all of Victoria » sound financial management.

This is done by overseeing the delivery of quality, sustainable and cost-effective passenger train, tram and bus services to metropolitan Melbourne and rural and regional Victoria, in partnership with operators and in accordance with contractual arrangements.

These outputs aim to continue the improvement in the delivery of, and access to, public transport services and to increase the overall mobility of Victorians. The outputs help to protect the environment by increasing public transport patronage, thereby reducing the reliance on private motor vehicles. The government works in partnership with operators to achieve these output aims. Contracts with operators are managed to ensure that the services provided meet contractually agreed standards and that the committed investment levels for rolling stock and buses are delivered.

These outputs also include the provision of school bus services and managing the Multi Purpose Taxi Program, which provides subsidised taxi services for people unable to use other forms of public transport.

Integrated Metropolitan Public Transport Services Work in partnership with private operators to deliver quality metropolitan train, tram and bus services in accordance with contractual arrangements.

Major outputs/deliverables Unit of 2007‑08 2007‑08 Performance Measures Measure Target Actual

Quantity Total kilometres scheduled: »» train km (million) 17.8 1810 »» tram km (million) 23.1 23.110 »» bus km (million) 92.2 88.436 Scheduled services delivered: »» train percent 99.2 99.010 »» tram percent 99.5 99.710 »» bus percent 99.0 99.910 Passengers carried: »» train number (million) 182.3 201.237 »» tram number (million) 154.2 158.337 »» bus number (million) 86.5 91.337 Payments made for: 38 »» train services $ million 412 39810 »» tram services $ million 146 13710 »» bus services $ million 379 38010

196 Department of Transport Annual Report 2007-08 Major outputs/deliverables Unit of 2007‑08 2007‑08 Performance Measures Measure Target Actual

Quality Customer satisfaction index: 39 »» train services score >65.4 59.440 »» tram services score >71.2 67.441 »» bus services score >69.2 66.910 Rolling stock annual plan meets specifications in the Partnership Agreement: »» train percent 100 10010 »» tram percent 100 10010

Timeliness Train services arriving at destination no more than 59 seconds before and less than five minutes 59 seconds after timetable percent 94.0 92.342 Tram services departing the 2nd, 3rd and 4th monitoring points (average) no more than 59 seconds before and less than five minutes 59 seconds after timetable percent 82.5 81.810 Bus services within five minutes of timetable percent 95.0 95.010 Nominated franchisee capital projects are delivered within scheduled or subsequent quarter: »» train percent 85 94.510 »» tram percent 85 82.510

Cost Total output cost $ million 1,772.7 1,763.510

36. The timing of the introduction of new bus services was affected by extensive consultation being undertaken with stakeholder groups. 37. Train patronage growth in 2007-08 was 12.7 percent, tram growth 2.2 percent and bus 7.4 percent. The significant growth in patronage is due to a range of factors including higher petrol prices, interest rate rises, improved public transport services, increasing environmental awareness in the community, increased population growth and the abolition of metropolitan Zone 3 ticketing in March 2007. 38. The payment figure provided represents the payments made by the department to operators for the provision of transport services and does not include the administrative overheads incurred by the department. It also does not include the capital asset charges payable to VicTrack in relation to train and tram operations. 39. The Director of Public Transport commissions monthly surveys of both users and non users of public transport to measure satisfaction with services. 40. Customer satisfaction with metropolitan train services is lower than target due primarily to poorer than expected service delivery (punctuality and reliability). Service delivery has been affected by the Siemens braking issue in mid-2007, signalling problems in December-January and the increase in patronage which has resulted in crowding on peak services and delays at stations. 41. Customer satisfaction with metropolitan tram services is lower than target primarily due to increased crowding on trams and journey times. There is also evidence that low satisfaction with train performance affects users’ perception of tram services. 42. Punctuality has been affected by the Siemens brake issue and signalling issues in December- January which has been rectified, and delays caused by the significant increase in patronage which has resulted in crowding on peak services and consequently delays at stations.

197 Rural and Regional Public Transport Services Work in partnership with V/Line and private operators to deliver quality train, coach and bus services in and to regional and rural Victoria, in accordance with contractual arrangements.

Major outputs/deliverables Unit of 2007‑08 2007‑08 Performance Measures Measure Target Actual

Quantity Total kilometres scheduled: »» V/Line train and coach km (million) 14.0 14.510 »» country bus km (million) 22.7 21.343 Scheduled services delivered: »» V/Line train percent 99.0 98.710 »» country bus percent 99.0 99.010 Passengers carried: »» V/Line train and coach services number (million) 9.2 11.644 »» country bus services number (million) 12.1 13.545 Payments made for: »» V/Line train services $ million 259 26210 »» country bus services $ million 77 8010

Quality Customer satisfaction index: 46 »» V/Line train services score >75.9 76.710 »» V/Line coach services score >80.4 80.310 Rolling stock annual plan meets specifications in the Partnership Agreement: V/Line train percent 100 10010

Timeliness Country bus services within five minutes of timetable percent 99.0 99.010 Rail services arriving at destination no more than five minutes 59 seconds after timetable for short haul services and 10 minutes 59 seconds for long haul services percent 92.0 86.247

Cost Total output cost $ million 603.4 606.210

43. The timing of the introduction of new bus services was affected by extensive consultation being undertaken with stakeholder groups. 44. Patronage growth of 23.5 percent was achieved due to a range of factors including improved public transport services, higher petrol prices, increasing environmental awareness in the community and the average 20 percent fare reduction introduced in March 2007. 45. This is an estimate as final figures are not available until early November 2008. 46. The Director of Public Transport commissions monthly surveys of both users and non-users of public transport to measure satisfaction with services. 47. The major causes of delays to V/Line rail services are congestion on the metropolitan rail network, infrastructure and rolling stock faults and heat-related speed restrictions.

198 Department of Transport Annual Report 2007-08 Specialist Transport Services Manage contractual arrangements for the provision of school bus services in accordance with contract service standards. Manage the Multi Purpose Taxi Program, which provides subsidised taxi services for those unable to use other forms of public transport, and provide access for people with a disability to transport facilities by meeting obligations under the Disability Discrimination Act 1992 (Commonwealth).

Major outputs/deliverables Unit of 2007‑08 2007‑08 Performance Measures Measure Target Actual

Quantity Total kilometres scheduled: school bus km (million) 33.7 33.410 Scheduled school bus services delivered percent 99 9910 Multi Purpose Taxi Program taxi trips: »» passenger only number (‘000) 4,000 3,85610 »» with wheelchair number (‘000) 570 59810 Disability Discrimination Act 1992 (DDA) compliance for public transport infrastructure: »» level access tram stops built number 40 5948 »» number of accessible bus stops built number 3,000 3,20010 »» V/Line stations upgraded to meet DDA requirements number 5 7 10 Transport access sites treated by VicRoads number 115 8949

Quality Transport access projects completed within agreed scope or standards percent 100 10010

Timeliness School bus services within five minutes of timetable percent 99 9910 Multi Purpose Taxi Program applications assessed and completed within 10 working days percent 94 5350 Programmed transport access works completed within agreed timeframes percent 100 10010

Cost Total output cost $ million 221.3 225.910

48. The result reflects the close cooperation between DOT, the operator, VicRoads, councils and contractors to secure the timely approval for and delivery of accessible tram stops. 49. The lower number of access sites treated is due to projects of increased complexity in 2007-08. 50. A revised and more robust methodology for measuring the time taken to assess Multi Purpose Taxi Program (MPTP) applications was introduced from 1 July 2007 which has contributed to the result being below target. The major cause of delays was related to resource and capacity issues which have now been addressed.

199 Infrastructure Planning, Delivery and Management

These outputs make a significant The government is committed to contribution to the achievement of the building better, more accessible following key government outcomes: transport links for the state. This includes improving the integration, »» growing and linking all of Victoria across government, of transport and »» sound financial management land-use planning, increasing the use of public transport and strengthening »» more quality jobs and thriving, the connections between our ports, innovative industries across Victoria industry and agricultural centres. »» greater public participation and These outputs deliver a combination of more accountable government. strategic road and rail infrastructure improvements to manage congestion These outputs do this by providing and improve the movement of people the government with strategic policy and goods throughout Victoria. They and development guidance in relation also encompass infrastructure projects to integrated transport planning, that will extend and increase capacity implementing targeted industry and on the metropolitan train network; community programs, and delivering improve control and communications cost-effective, long-term investment across the metropolitan train network; in, and management of, public reopen country passenger rail services; infrastructure and major government improve strategic arterial road links; projects in Victoria. Implementation and establish a major tollway linking of the government’s Meeting Our the city’s south-eastern suburbs. Transport Challenges: Connecting Victorian Communities 10-year action Within the Public Construction plan is reflected in many of the and Land Development output, the projects and milestones reported in department assesses the feasibility these outputs. of infrastructure development options and coordinates the delivery of a variety of infrastructure projects. These are in addition to a number of major construction projects that are funded through other government departments and which are delivered by Major Projects Victoria as a service to the host departments and agencies. The latter projects are not reported in the department’s output statements.

200 Department of Transport Annual Report 2007-08 Integrated Transport Policy and Planning Contribute to the development of strategies for regional, rural and metropolitan Victoria by working collaboratively across government and with the community on transport planning frameworks, infrastructure priorities and implementation processes. Implement programs to influence travel behaviour and manage travel demands.

Major outputs/deliverables Unit of 2007‑08 2007‑08 Performance Measures Measure Target Actual

Quantity New TravelSmart programs at workplaces, schools, tertiary education campuses and other organisations51 number 35 3510 Local Area Access Program grant funding committed within agreed timelines52 percent 100 10010 Local Area Access Program evaluation framework developed percent 100 8053 Completion of AusLink corridor strategies involving Victoria54 number 8 810

Quality New travel plans developed by schools, workplaces and other organisations participating in TravelSmart programs percent 60 6010 TravelSmart program delivered to participating tertiary campuses percent 100 10010 Local Area Access Program assessments, monitoring reports and payments undertaken according to grant agreements percent 100 10010

Timeliness TravelSmart activities completed within agreed timelines percent 100 10010 Local Area Access Program activities completed within agreed timelines percent 100 10010 Policy advice including COAG National Reform Agenda provided to agreed timelines55 percent 100 10010 East-West Link Needs Assessment – Final report to government56 date qtr 3 qtr 310

Cost Total output cost $ million 28.3 36.210

51. TravelSmart is a travel behaviour change program aimed at encouraging more sustainable travel options such as walking, cycling and public transport. 52. This program will fund local councils to develop and implement small scale “demonstration projects” that improve access to activity centres, community services, jobs and other attractions within local areas and support the use of sustainable transport alternatives. 53. Evaluation framework will be completed by December 2008. 54. AusLink is a cooperative transport planning and funding initiative with joint federal, state and territory responsibility for the delivery of projects. Its core components include a defined National network of important road and rail infrastructure links and their intermodal connections and a National Land Transport Plan which integrates planning and investment on the national network. There are eight AusLink projects in Victoria, which are: Melbourne-Adelaide; Melbourne-Brisbane; Melbourne-Geelong; Melbourne-Mildura; Melbourne-Sale; Melbourne-Sydney; Adelaide-Sydney (includes parts of northern Victoria); and Melbourne Urban. 55. The department provides policy advice to the COAG on: Victoria’s first Infrastructure Report to COAG; National Review of Urban Congestion; Review of Ports Regulation; Road and Rail Pricing; and the importance of Australia’s cities and their transport systems. 56. The East-West Link Needs Assessment (Eddington Study) was announced by the government in May 2006 as part of Meeting Our Transport Challenges.

201 Public Transport Infrastructure Development Ensure delivery of the government’s commitment to metropolitan, regional and rural public transport infrastructure development and monitor the quality of rail infrastructure as set out in the contracts with the private operators.

Major outputs/deliverables Unit of 2007‑08 2007‑08 Performance Measures Measure Target Actual

Quantity Craigieburn Rail Project construction projects – contract completion: major works packages percent 100 10057 Dandenong Rail Corridor: project scoped and costed for funding decisions percent 100 10058 Track duplication – Clifton Hill to Westgarth: main works packages percent 30 2059 Projects continuing: »» Wodonga Rail Bypass number 1 110 »» Country rail services: Mildura and Leongatha number 2 160

Quality Projects progressed to agreed plans and timeframes percent 100 7561

Timeliness Craigieburn Rail Project: Craigieburn and Roxburgh Park stations complete date qtr 1 qtr 110 Track duplication – Clifton Hill to Westgarth: »» main works contract awarded date qtr 2 qtr 362 »» signalling contract awarded date qtr 3 qtr 363 Planned infrastructure asset renewal/maintenance activities are delivered within project timelines: percent »» metropolitan train network cumulative 90 9210 percent »» tram network cumulative 90 9010 percent »» country passenger rail network cumulative 90 9010 Development of new integrated public transport ticketing solution: »» commence customer education program date qtr 1 qtr 110 »» commence metropolitan installation date qtr 2 qtr 210 Metropolitan Train Communications System replacement:64 »» request for tender issued date qtr 1 qtr 265 »» tender awarded date qtr 3 na65 Metrol Replacement: »» design completed for core Metrol systems66 date qtr 4 qtr 410 North Melbourne Station Interchange Upgrade: »» commence works on concourse date qtr 2 qtr 210

202 Department of Transport Annual Report 2007-08 Major outputs/deliverables Unit of 2007‑08 2007‑08 Performance Measures Measure Target Actual Vigilance Control and Event Recording System (VICERS): »» complete wiring on Comeng fleet for installation of VICERS units date qtr 1 qtr 367 »» complete VICERS unit installation on Comeng fleet date qtr 2 na67 »» commence installation on Siemens/Xtrapolis fleet date qtr 2 na68 SmartBus: Red Orbital – Box Hill to Altona »» Construction works commence on road priority treatments date qtr 2 qtr 110 »» Construction works commence on bus stop upgrade works date qtr 4 qtr 410

Cost Total output cost $ million 114.1 72.969

57. Project is complete and services commenced in September 2007. 58. Project scoping was completed, and a series of works packages has been identified for progressive implementation. 59. Progress during 2007-08 was delayed slightly due to planning approvals processes with stakeholders that delayed the award of construction contracts. The completion date will not be affected. 60. In May 2008, the government announced that the Leongatha services would be provided by coach rather than rail. 61. VICERS, Metropolitan Train Communications, and Track Duplication – Clifton Hill to Westgarth were delayed. 62. Finalisations of acquisitions of land and planning approvals delayed the release of the construction tender and consequently the contract award date. The completion date has not been affected. 63. A signalling contract was not awarded for the Clifton Hill to Westgarth track duplication project. In its place, pursuant to the powers in the infrastructure lease, a written Project Agreement was executed between the Director of Public Transport and Pty Ltd for Connex to provide signalling, service relocation works and overhead traction design and construction for this project. 64. This project involves replacing the train radio system across the electrified rail network. 65. A two stage procurement approach for the Metropolitan Communications System has been adopted in order to test offered technical and commercial solutions. This has resulted in the development of detailed specifications taking longer than originally planned, but the benefit is reduced project risk. The contract is expected to be awarded in quarter 1, 2008-09. 66. Metrol is the computer system currently used for controlling and monitoring trains operating across the metropolitan rail network. 67. An initial delay was caused by drivers and technical specialists being diverted to address the Siemens brake problem and the finalisation of the driver control placement. Further delays were caused by Integrian, the company delivering VICERS, being placed into administration in October 2007 and ceasing its operations. At this time 90 percent of the Comeng fleet had been wired for the installation of VICERS units, and units had been installed on 30 percent of the Comeng fleet. The completion of VICERS installation on the Comeng trains is now being expedited by Faiveley Transport, which took over the project in February 2008, and Connex, with completion expected in quarter 1, 2008-09. 68. Due to the delays in the project (refer to note 67) the design and development of the VICERS solution on the Xtrapolis and Siemens train fleet commenced in quarter 4, 2007-08 with installation to commence on the Xtrapolis fleet by late 2008. 69. Variation primarily reflects revised project schedule for Public Transport Ticketing Solution.

203 Road System Management Enhance the performance of Victoria’s road network to improve access and efficiency by developing road transport links, lowering transport operating costs and upgrading the quality of roads with respect to safety.

Major outputs/deliverables Unit of 2007‑08 2007‑08 Performance Measures Measure Target Actual

Quantity EastLink Project: »» Community Advisory Group (including number of Concessionaire) meets to address community issues meetings 10 1010 »» Concession Deed identified, project groups and other concession management committees meet at agreed frequency percent 100 10010 »» land acquisitions completed percent 100 10010 Road network maintained: »» metropolitan lane‑km 11,419 11,41910 »» regional lane‑km 41,744 41,74410 Bridges maintained: »» metropolitan number 858 86410 »» regional number 2,165 2,18310 Major road improvement projects completed: »» metropolitan number 2 210 »» regional number 1 110 Other road improvement projects completed: »» metropolitan number 11 1210 »» regional number 15 1310 Pavement resurfaced: »» metropolitan m2 (‘000) 2,090 2,20470 »» regional m2 (‘000) 10,396 10,71370 Bridge strengthening and replacement projects completed: »» metropolitan number 2 110 »» regional number 7 371 Local road projects completed: »» regional number 14 1272

204 Department of Transport Annual Report 2007-08 Major outputs/deliverables Unit of 2007‑08 2007‑08 Performance Measures Measure Target Actual

Quality SEITA’s risk management plan reviewed number of and mitigation strategies in place73 reviews 4 410 Design and construction issues for EastLink progressively identified and resolved with Concessionaire74 percent 100 10075 Proportion of travel on smooth roads:76 »» metropolitan percent 91 9110 »» regional percent 93 9310 Bridges that are acceptable for legal load vehicles: »» metropolitan percent 99.4 99.510 »» regional percent 99.6 99.710 Bridges with Level 4 defects: »» metropolitan percent 1.2 1.810 »» regional percent 3.2 3.010 Road projects completed within agreed scope and standards: »» metropolitan percent 98 9810 »» regional percent 98 9810

Timeliness Annual maintenance program completed within agreed timeframes: »» metropolitan percent 100 10010 »» regional percent 100 10010 Programmed works completed within agreed timeframes: »» metropolitan percent 95 9510 »» regional percent 95 9510 Major design and construction milestones for EastLink reviewed and reported74 percent 100 10010

Cost Total output cost $ million 868.6 871.410

70. Additional projects were included in the program to meet the current needs assessment across the Victorian network. 71. The lower number of projects completed reflects the current needs assessment across the Victorian network. 72. The lower number of projects completed reflects the increased complexity of projects in 2007-08. 73. The Southern and Eastern Integrated Transport Authority (SEITA) was established by an Act of Parliament in July 2003, with the specific purpose to facilitate the delivery of the EastLink Project. 74. EastLink design and construction is the responsibility of the Concessionaire and their design and construct contractor. 75. Milestones set for 2007-08 as listed in Schedule 10 of the Concession Deed have all been exceeded with EastLink opened to traffic on 29 June 2008, five months ahead of schedule. 76. Smooth travel exposure is measured as the percentage of travel undertaken each year on roads with a roughness level condition < 4.2 International Roughness Index (IRI). This indicator is reported each year for all state road authorities and is based on the IRI. It is calculated to a defined methodology. The roughness level of < 4.2 IRI is based on customer surveys regarding ride quality.

205 Traffic and Transport Management Deliver cost‑effective projects to reduce congestion and improve travel times for all road users including public transport, bicycles and pedestrians.

Major outputs/deliverables Unit of 2007‑08 2007‑08 Performance Measures Measure Target Actual

Quantity Road user facilities improvement projects number 48 3577 Travel time improvement projects for high occupancy vehicles78 number 30 1279 Number of cycling projects delivered number 20 1580 Length of cycling paths and lanes completed km 18.35 13.880 Number of pedestrian projects delivered number 15 1380

Quality Projects delivered in accordance with agreed scope and standards percent 100 10080

Timeliness Program works completed within agreed timeframes percent 100 10080

Cost Total output cost $ million 125.2 115.481

77. The result reflects both the early completion of a number of projects in 2006-07 as well as the rescheduling of projects for completion in 2008-09. 78. High occupancy vehicles include public transport such as trains, trams and buses, as well as commercial passenger vehicles such as taxis. 79. The result reflects the number of complex projects commencing in 2007-08. 80. The result reflects the early completion of several of the projects in 2006-07 which were included in the original 2007-08 target. 81. The result reflects reclassification of activities across outputs.

206 Department of Transport Annual Report 2007-08 Freight, Logistics, Ports and Marine Development Plan and deliver policy and infrastructure initiatives to improve efficiency and safety in the freight and logistics sector and the state’s ports and marine environment, while reducing environmental and social impacts caused by the movement of freight.

Major outputs/deliverables Unit of 2007‑08 2007‑08 Performance Measures Measure Target Actual

Quantity Dynon Port Rail Link: design and construction of bridge, road and rail works (excluding signalling) percent 40 4482 Geelong Port Rail Access: planning and construction percent 90 3082 Road‑based freight accessibility and reliability improvement projects completed number 21 583 Projects continuing: »» Rail gauge standardisation number 1 182

Quality Road‑based freight accessibility and reliability projects completed within specified scope and standards percent 100 10082

Timeliness Channel deepening: project approval84 date qtr 2 qtr 282 Dynon Port Rail Link: »» complete Customs Access Road date qtr 4 qtr 482 »» complete Appleton Dock Road date qtr 4 qtr 482 Mildura Rail Corridor Freight Upgrade Project: »» sleeper contract commenced date qtr 1 qtr 182 »» construction commenced date qtr 2 qtr 282 Road‑based freight accessibility and reliability projects completed within agreed timeframes percent 100 10082

Cost Total output cost $ million 26.9 66.385

82. Delays had been experienced but the contracts have now been awarded and the project is scheduled for completion in 2009. 83. The result is due to the number of complex, higher cost projects commencing in 2007-08. A number of these projects are expected to be completed in 2008-09. 84. Measure reflects the next phase of the channel deepening project after completion of the SEES (Supplementary Environment Effects Statement). 85. Variation primarily reflects country rail freight maintenance funding approved post-budget and reclassification from capital.

207 Public Construction and Land Development86 Management and delivery of nominated public construction and land development projects, the coordination of development projects and associated feasibility studies.

Major outputs/deliverables Unit of 2007‑08 2007‑08 Performance Measures Measure Target Actual

Quality Delivery of nominated Major Projects Victoria projects complies with agreed plans percent 10082 100

Timeliness Flinders Street West Precinct Urban Redevelopment: finalising remaining scope of project works with VicRoads and Public Transport Division date qtr 282 qtr 2 : commencement of deck demolition87 date qtr 282 qtr 2 Parkville Gardens: completion of retrofit works88 date qtr 182 qtr 1

Cost Total output cost $ million 19.289 23.4

86 Projects named in this output are those for which funding is received directly by the department. The department also manages the delivery of major projects that are funded through other departments and agencies. 87 Measure for the restoration and partial refurbishment of the pier in accordance with the Victorian Heritage Legislation. 88 Measure for refitting Commonwealth Games housing for public sale, and social housing for handing over to the Housing Association. 89 Excludes costs of transit cities functions which were transferred to the Department of Planning and Community Development as part of machinery of government changes in 2007-08.

208 Department of Transport Annual Report 2007-08 Better Roads Victoria Trust Account

The Victorian Government’s Better Roads Victoria Trust was established in 1993 under the Business Franchise (Petrolium Products) Act 1979. The Act specifies that a state franchise levy on petrol and diesel fuel sales would be paid into the Better Roads Victoria Trust. Following the abolition of this levy in August 1997, the Victorian Government has continued to make equivalent payments to the Trust, together with $17 per motor vehicle registration applicable from 1 July 2003 and subsequent indexation. In addition, from 1 July 2005, all receipts collected from traffic cameras and on the spot speeding fines are channelled into the Better Roads Victoria Trust. Funds from the Better Roads Victoria Trust are used for the construction and maintenance of roads in accordance with the Road Management Act 2004, road safety initiatives and traffic integration projects.

2007-08 Actual $ million Opening cash balance 139.5

Source of Funds BRV revenue 385.0 Traffic camera revenue 232.8 Total funding available 757.3

Application of Funds Road projects 454.8 Programs funded from traffic camera revenue Traffic and Transport Integration Management 52.3 Road Safety Management 29.0 Road System Management 151.5 Total payments from Trust 687.6 Closing cash balance 1 69.7

1. The closing balance is fully committed to future approved projects.

209 Environmental Performance Report

This environmental performance report has been prepared in accordance with Actions undertaken: the requirements set out in the ‘Financial Reporting Direction 24 (FRD 24C): »» ensuring the new office fit-outs are Reporting of Office-based Environmental Impacts by Government Departments’. energy efficient It relates to the department’s office-based activities only. It should be noted that comparatives are only provided where similar data was available in the »» introducing technology through the previous year. DOT Desktop to have a “smaller environmental footprint” by offering Energy powersave, automated power-off and other energy efficiency features The Department of Transport consumes energy for its office facilities located »» continuing to limit the growth of at 121 Exhibition Street, Melbourne, 80 Collins Street, Melbourne and 14-20 peripheral electronic equipment on Blackwood Street, North Melbourne. The data represented below was collected floors through energy retailer billing information and represents 100% of sites and 100% of FTE staff. (FTE figure for 2007-08 was 1,075.7). »» investigating whether printers can also be automatically shut down on weekends »» continuing to encourage people Indicator 2007-08 2006-07 to turn off their PCs after hours, Electricity Green Electricity Green including distributing ‘Switch Off’ Power Power stickers Total energy usage 8,357,436 1,556,118 7,081,274 1,249,637 »» continuing to investigate other segmented by primary energy saving options to work source (MJ) towards a four star ABGR-rating. Greenhouse gas 3,041 2,577 emissions associated Targets: with energy use, »» increase the purchase of Green segmented by primary Power to 25% by 2010 source and offsets (t CO -e) »» reduce energy use by a further 5% 2 on top of current 15% requirement Percentage of electricity 16% 15% by 2010, so that by 2010 annual purchased as Green energy use per square metre will be Power (%) at least 20% less than consumption. Units of energy used 7,769 1,447 6,888 1,216 per FTE (MJ/FTE) Explanatory notes Units of energy used 222 41 251 89 »» 100% of total sites and 100% of total per unit of office area staff represented by data (MJ/m2) »» increase in total energy usage due to co-location of two sites whilst Trend reporting: move to 121 Exhibition Street and refurbishment of 80 Collins Street Energy Unit of 2007-08 2006-07 2005-06 2004-05 2003-04 was completed, and measure Actual »» use by square metre of office space Use per square Megajoule 263 340 378.5 447.5 425.8 decreased, even though energy metre of office consumption increased. This is due space to co-location of floors due to the fit-outs and refurbishments at 121 Exhibition Street and 80 Collins Street. There was an increase in floor space for the 2007-08 period.

210 Department of Transport Annual Report 2007-08 Waste Actions undertaken: DOT head office relocation project »» waste awareness bulletins The waste generated by processes The clean-up process prior to the in DOT is divided into three general »» publication of new waste signage relocation to 121 Exhibition Street classes: landfill, compost and and promotion of signage resulted in the removal/recycling of the following waste: recycling. DOT’s waste management »» waste audit, including a program facilitates the easy contamination audit, to identify »» 288.8 shelf metres of rubbish sent segregation of waste materials for further opportunities to reduce to landfill recycling, composting or landfill waste to landfill and promote in DOT offices. »» 1,801 shelf metres recycled recycling. (includes paper, secure document The data presented below is derived destruction and recycled toner from a 24-hour waste audit conducted cartridges) at two sites accommodating 54% »» 676 shelf metres of redundant office of FTE. equipment auctioned for reuse, and »» 87 CRT computer monitors recycled Indicator 2007-08 (lead-based glass removed prior to Landfill Commingled Compost the recycling of other components). recycling As part of the 80 Collins Street Total units of waste disposed of by 14,221 59,884 10,660 refurbishment project: destination (kg/yr) per year »» approximately 160 tonnes of waste Units of waste disposed of per FTE by 13.22 55.67 9.91 was recycled. A further 40 tonnes destination (kg/FTE) per year could not be recycled and was sent Recycling rate (% of total waste) 83.2% to landfill Greenhouse gas emissions associated 7,281 »» over 7,500 items of loose furniture with waste disposal (t CO2-e) were removed from 80 Collins Street during the refurbishment project to be sold for reuse.

Trend reporting: Target: Waste Unit of 2007-08 2006-07 2005-06 2004-05 2003-04 »» to generate 13 kilograms or less measure Actual landfill waste per FTE for 2008-09. Total Kilograms 70,544 94,241 72,749 44,355 25,634 Explanatory notes: recycled »» two sites and 54% of total staff represented by data »» the figures of waste disposal in one 24-hour sample have been projected to provide an estimate of annual waste produced.

211 Paper Actions undertaken: Target: »» staff awareness campaigns relating »» to reduce our paper consumption to While there has been an increase to paper usage less than 18 reams per FTE by June in total paper used from 2006-07, 2009. the department has reduced paper »» continued roll-out of DOT’s consumption significantly since electronic document management monitoring began in 2002-03. system (TRIM) Explanatory notes: »» 100% of total sites and 100% of total »» all paper chosen by Corporate staff represented by data Public Affairs for publications has environmental consideration (ISO »» use of reams per FTE remained 14001 or FSC certified) constant due to additional paper requirements »» default printers to print double- sided (where printers have »» the advising of external clients of capability). the department’s name change.

Indicator 2007-08 2006-07 Total units of copy paper 21,493 20,544 used (reams) Units of copy paper used 19.9 19.9 per FTE (reams per FTE) Percentage 76-100% 8% recycled content copy paper purchased (%) Percentage 51-75% 0% recycled content copy paper purchased (%) Percentage 50% recycled 92% content copy paper purchased (%)

Trend reporting:

Paper Unit of 2007-08 2006-07 2005-06 2004-05 2003-04 measure Actual Use per Reams 19.9 19.9 22.1 24.7 29.2 FTE Total use Reams 21,493 20,544 24,676 23,087 23,342

212 Department of Transport Annual Report 2007-08 Water Actions undertaken: Target: »» water meters installed on every »» to reduce water consumption The below data is based on water DOT floor at 121 Exhibition Street by 5% per FTE of the 2007-08 meter readings at DOT’s sites, and 80 Collins Street to improve consumption. covering 100% of staff. water consumption monitoring »» water awareness bulletins Explanatory notes: »» 100% of total sites and 100% of total »» investigated options for installing staff represented by data further water saving initiatives within DOT tenancy at 80 Collins »» the Potable Water Use – Tenancy Street. Only at SX1, 121 Exhibition Street is the metered water used in the showers, kitchens and tea points »» the Blackwater Treatment Plant at 121 Exhibition Street recycled 18,582 litres for the 12 month 121 Exhibition Street / 80 Collins Street period ending 30 June 2008 Indicator 2007-08 »» the Potable Water Use – Tenancy Only at 80 Collins Street is the Potable water use – Tenancy Only – (KL/FTE) 2.99 metered water used in the showers, Potable water use – Tenancy Only – (KL/Year) 2,850 kitchen areas and toilets Potable water use – Tenancy Only – (KL/m2) 0.06 »» at Blackwood Street, where the water consumption increased slightly by 5%, DOT occupies 66% Blackwood Street, North Melbourne of a multi-tenanted building, and Indicator 2007-08 2006-07 total consumption includes base Total units of metered water consumed by water 1,191 1,132 building water consumption. source (KL) Water consumption has been estimated and/or extrapolated. Units of metered water consumed in offices per 9.70 9.22 DOT’s consumption is based on FTE (KL/FTE) percentage of building occupied Units of metered water consumed in offices per 0.74 0.70 and total building consumption, unit of office area (KL/m2) and may not give a true indication of DOT sole consumption »» during 2007-08 DOT was also co- locating at two sites, 121 Exhibition Street and 80 Collins Street due to refurbishment and fit-out works.

213 Transport Actions undertaken: »» promotion of refuelling using »» reducing greenhouse gas emissions ethanol-based fuel (E10 fuel), The department’s fleet comprises 83 by incorporating more four cylinder, where possible. vehicles. Of these vehicles, 32% are LPG and hybrid vehicles into the LPG, 39% are four cylinder petrol- DOT fleet Target: fuelled, 24 % are six cylinder petrol- »» to reduce our associated fuelled and 5% are hybrid. »» continuing to encourage executive officers to lease four cylinder, LPG greenhouse gas emissions from or hybrid vehicles pool and dedicated fleet by 3% of 2007-08 target of 633 kg CO2.

Indicator 2007-08 Explanatory notes: Vehicle data: unleaded Diesel LPG E10 »» an error was noted in the DOT Greenhouse Emissions Calculator Total energy consumption by 4,288,817 2,723,770 2,049,521 72,996 during the 2006-07 reporting vehicles (MJ) period. 2005-06 and 2006-07 Total vehicle travel associated 1,263,668 599,794 575,201 N/A transport figures were adjusted to with entity operations (km) reflect inclusion of fuel coefficients used to calculate hire car vehicle Total greenhouse gas emissions 314 205 133 N/A emissions. It was previously from vehicle fleet (t CO -e) 2 reported that DOT consumed 12,524 Greenhouse gas emissions 0.25 0.34 0.23 N/A GJ of fuel during 2006-07. This from vehicle fleet per 1,000km has been corrected to 10,261 GJ

travelled (t CO2-e) (10,261,000 MJ). Our 2005-06 data reported 13,718 GJ of fuel used. This has been corrected to 12,519 GJ (12,519,000 MJ). Air travel data: Total distance travelled by aeroplane (km) 1,507,895

TravelSmart data: CBD North Melbourne Percentage of employees regularly (>75% of 87.9 67.4 work attendance days) using public transport, cycling, walking, or car pooling to and from work or working from home, by locality type

Trend reporting:

Transport Unit of measure 2007-08 2006-07 2005-06 2004-05 2003-04 Actual Total fuel consumption Megajoules 9,135,105 10,261,000 12,519,000 11,829,000 10,062,000

Total associated greenhouse Tonnes of CO² 652 741 897 834.1 735.8 gas emissions equivalent

214 Department of Transport Annual Report 2007-08 Greenhouse Explanatory notes: Procurement gas emissions »» 100% of total sites and 100% of staff represented by all data except DOT has undertaken the following The emissions disclosed in the section waste procurement actions : below are taken from the previous »» 54% of FTE represented for waste »» environmental factors were sections and brought together here to data considered in the procurement of show the department’s greenhouse furniture and workstations for the footprint. »» air travel increased during 2008-09, relocation of DOT head office to 121 therefore an increase in greenhouse Exhibition Street Actions undertaken: emissions »» DOT publicises the green section of »» refer to Energy, Transport and »» refer to Energy, Transport and stationery catalogue, for stationery Waste sections. Waste sections. purchases »» DOT has undertaken discussions Target: to embed environmental »» refer to Energy, Transport and sustainability into DOT contracts Waste sections. and procurement processes. It is anticipated that this will be further developed during 2008-09. Indicator 2007-08 2006-07 Target: Total greenhouse gas emissions associated 3,041 2,577 »» to ensure 100% of our A4 copy with energy use (t CO -e) 2 paper purchase contains at least Total greenhouse gas emissions associated 652 741 50% recycled-content with vehicle fleet (t CO -e) 2 »» to ensure that environmental Total greenhouse gas emissions associated 477.94 347.31 factors are considered when with air travel (t CO -e) 2 purchasing furniture Total greenhouse gas emissions associated 7,281 6,643 »» to further develop the embedding with waste production (t CO -e) 2 of environmental sustainability into Greenhouse gas emissions offsets purchased 0 480 DOT contracts and procurement

(t CO2-e) processes.

215 Whole of Government Reporting – Multicultural Affairs

Background Valuing diversity and promoting 2007-08 Key achievements the benefits of cultural diversity The government’s multicultural policy for all Victorians: VicRoads – Valuing Cultural Diversity – outlines »» fostering a community which the foundations for supporting recognises the values and benefits Assist culturally and linguistically Victoria’s diverse community and of a culturally rich and diverse diverse communities (CALD) to promoting a socially cohesive society society understand Victorian registration and through: licensing requirements: »» actively promoting respect and harmony and discouraging racism »» participated in various and negative stereotypes presentations for newly-arrived migrant drivers to inform them of »» promoting the benefits of a Victorian registration and licensing culturally and linguistically diverse requirements society and the social, cultural and economic opportunities this »» sessions were conducted to a provides to advance the wellbeing range of culturally and linguistically of all Victorians. diverse groups outlining the steps required to obtain learner permits and driver licenses Reducing inequality: »» having in place systems and »» Customer Service Centres in procedures that will enable all outer metropolitan Melbourne and Victorians access to government the Goulburn Valley region were services and programs free from requested to provide information to undue impediment community groups in the area due to the large numbers of newly- »» ensuring government policies and arrived migrants strategies are responsive to all Victorians »» presentations were organised by Customer Service Centres in »» using appropriate media and Shepparton, Broadmeadows and promotional channels as a means Sunshine. to ensure government information reaches all Victorians. Multilingual guide to child restraints DVD: Encouraging participation: »» this DVD demonstrates and »» encouraging an inclusive society explains in English and nine other that provides opportunities for all languages a driver’s responsibility people to fully participate in public for passengers under 16 years of and civic life age and how to correctly install and use infant and child restraints »» identifying and addressing any barriers to full participation »» this year, more than 840 multilingual DVDs on child »» recognising the right of people of restraints were ordered by diverse national, ethnic, religious children’s service providers for and linguistic backgrounds to distribution practice, enjoy and share their own culture.

216 Department of Transport Annual Report 2007-08 »» the DVD is in English, Bosnian, Graduated probationary Learner permit and licence tests in Chinese, Arabic, Vietnamese, licensing system: languages other than English: Somali, Dinka, Swahili, Karen and »» a new graduated licensing for »» VicRoads provides learner permit Turkish probationary drivers came into and licence tests in 20 different »» the DVD is provided free of charge force on 1 July 2008. Print and radio languages to Maternal and Child Health advertising was used to explain the »» statistics are kept for all language services, Migrant Resource Centres new laws and interpreter-assisted tests and other services providing »» more than 1,300 information kits and these statistics are reviewed support for CALD communities. in 17 languages were distributed regularly. Agencies are encouraged to make to culturally linguistically diverse DVDs available for borrowing by groups and organisations. Boat operator tests in individuals who may like other languages other than English family members to access the Interpreter-assisted telephone »» VicRoads provides boat operator information. customer service: licence tests in eight languages Starting Out Safely Early Childhood »» VicRoads Call Centre provides other than English. These tests Road Safety Education Program: services in languages other than are conducted on behalf of Marine English through the use of Victorian Safety Victoria. »» this program aims to assist parents Interpreter and Translating Services and carers of young children to Licences recognised from supervise and train their children in »» demand for this service continues other countries safe road use practices as young as to increase each year. possible »» in line with other Australian states Interpreter-assisted learner permit and territories, VicRoads recognises »» this information is available in and driver licence tests: other countries that have similar Arabic, Chinese, Somali, Turkish, licence-testing requirements for »» people from non-English speaking and Vietnamese the purposes of gaining a Victorian backgrounds can apply for a driver licence »» more than 100 early childhood learner permit or licence through education centres ordered interpreter-assisted tests »» VicRoads recognises 26 other multicultural child/parent materials countries with similar licence- »» in 2007-08 more than 5,440 tests in 2007-08 testing requirements. were conducted with the assistance »» more than 6,000 brochures were of interpreters. This figure is an ordered by children’s service increase from about 4,000 the year providers for distribution before. »» all children’s services are Novice driver publications available encouraged to make the in languages other than English; information available to relevant families. »» VicRoads provides the Road to Solo Driving and the Learner Kit in four languages as well as English.

217 Department of Transport DOT communications are available in Peer Education Program: alternative formats upon request: Celebrations during Celebrate our »» the Peer Education Program is Cultural Diversity Week (COCDW): »» a process and procedure guide coordinated by the Western Young has been developed including People’s Independent Network » COCDW aims to celebrate cultural » timeframes and key contact people (WYPIN) and is designed to teach diversity, promote greater racial within DOT. new arrivals about Melbourne’s and religious harmony and greater public transport services and make cultural understanding Diversity recruitment statement: the transition to their new country »» DOT celebrations included a joint »» a diversity statement is now easier display and cultural performance included on all position descriptions »» the kit consists of several visual in the foyer of 121 Exhibition Street as well as on the DOT employment aids, including flash cards, maps with the Department of Justice web page and games which cover a range and the Department of Innovation, of topics on how to use public Industry and Regional Development »» this statement directs people who require additional assistance or transport including the types of »» a speaker from the “Lost boys have special needs, to contact the public transport, zones, buying of Sudan” gave a presentation Diversity Coordinator for support , travelling safely and to department people about his and information. acting responsibly on public experiences as a Sudanese refugee. transport A lunch was provided by the Metlink »» the sessions are tailored to meet Asylum-Seekers Resource Centre the unique needs of culturally and Welcome to Victoria kit: »» all divisions were encouraged to linguistically diverse young people mark the week in their own ways. »» the Welcome to Victoria kit in terms of delivery, language and was developed by the Victorian material Cultural sensitivity training: Multicultural Commission and »» ten programs have been delivered provided to migrant and refugee »» cultural sensitivity training aims so far to 144 students to increase the awareness of children who entered the education DOT people who have direct system through English-language »» the visual resource kit is the public interface with people schools in 2007 product of three years’ collaboration between Metlink, Western Young from culturally and linguistically » it aims to encourage children and » People’s Independent Network, diverse backgrounds. It explains their families to take part in sport Yarra Trams and Connex. different communication methods and other community activities. It of different cultures and ways to contains information about services Ethnic media advertising: appreciate and overcome these for new arrivals, help with transport differences and free passes to Melbourne »» Metlink published newspaper advertisements to support the » the training was introduced as part attractions » introduction of new public transport of the Cultural Diversity Plan in »» Metlink contributed an English- fares response to A Fairer Victoria language copy of the Family Guide »» the advertisements were published » the training program was to Using Public Transport to each » in nine multicultural newspapers, comprehensive and the outcomes kit in 11 languages other than English. are good. »» the kit was provided to These were African, Arabic, approximately 6,000 children. Chinese, Croation, Greek, Italian, Macedonian, Spanish, Sudanese, Turkish and Vietnamese.

218 Department of Transport Annual Report 2007-08 Public transport brochures: Provision of telephone translation services for major rail infrastructure »» Metlink publishes four key projects: public transport brochures in 10 languages other than English: »» DOT’s Infrastructure Projects Fares and Travel Guide, Travelling Division delivers major rail with a Concession Metcard, infrastructure projects for Travelling with Metcards your rights Victorians. In recognition of the and responsibilities, and Powers importance of providing information of Public Transport Authorised to all Victorians about rail projects, Officers the Metlink call centre was utilised to respond to community enquiries. »» the languages are Arabic, The call centre provides interpreter Chinese, Croatian, Greek, Italian, services when required Macedonian, Somali, Spanish, Turkish and Vietnamese »» the 1800 rail enquiries phone number was used on all rail »» 1,000 copies of each of these project fact sheets as part brochures were printed in 2007–08. of the online material on Public transport information: www.transport.vic.gov.au »» Metlink offers a telephone translation service for state-wide public transport enquiries in 13 languages other than English. These are: Arabic, Cantonese, Croatian, Dinka, Greek, Italian, Macedonian, Mandarin, Somali, Spanish, Sudanese, Turkish and Vietnamese »» the Metlink call centre received 283 calls needing interpreters in 2007-08.

219 Whole of Government Reporting – Women’s Affairs

Background 2007-08 Key achievements Women in Freight, Logistics and Marine Management Scholarship The Victorian Government is VicRoads committed to working toward a DOT offers an annual $10,000 better quality of life for all Victorian Leadership Training for Women scholarship to a female, full-time women and their families. The key or part-time student starting or themes are: Senior women working at VicRoads completing a Masters, PhD, or were supported to attend training postgraduate degree in the freight, logistics or marine-related fields. Representation and equity programs designed to enhance their skills and assist them to operate The winner is also provided with »» ensure women are well- effectively in a male-dominated the opportunity to participate in part- represented in leadership and industry: time work at the department during decision-making. the year: »» the program increased the skills and confidence of women who »» a report by the Transport and Education, work and economic participated. Logistics Industry Skills Council independence found that women represented »» support employers and employees Department of Transport 27 percent of the transport and to better balance work and family logistics workforce compared with commitments and increase Women in Science, Engineering, the average across all industries women’s participation in the Technology and Construction of 44 percent workforce and ensure women are Scholarship provided with choices in education »» in addition, industry reports show and training. This is an initiative to provide three that only 12 percent of management scholarships for women in science, positions are held by women Health, wellbeing and community engineering and technology, and construction fields: strengthening »» the scholarship aims to help »» improve the health and wellbeing »» the scholarships aim to support promote women in management of Victorian women. women currently working or positions in the freight, logistics and aspiring to work in these fields marine industry to help the industry reap the benefits of a diverse and » women are under-represented Justice and safety » balanced workforce »» reduce the fear of violence in the construction industry and for women. the science, engineering and »» through the scholarship, the state technology sector government actively encourages women to consider transport and » three scholarships were awarded » logistic industries as viable and in 2008. rewarding management career options »» this was the fifth year that the scholarship had been offered »» the 2008 winner is currently studying a Masters course in Marketing, focussing on supply chain logistics. She intends to use her studies to gain a deeper grasp of the complexities and opportunities that supply chain logistics offer to improve business performance.

220 Department of Transport Annual Report 2007-08 Legislation (administered as at 30 June 2008)

As at 30 June Acts administered by Rail Safety Act 2006 the Minister for Public The main purpose of this Act is to 2008, the following Transport provide for safe rail operations in legislation was Victoria, including the accreditation of rail operators and the imposition administered by the of safety duties on key industry This Act ratifies an agreement participants. Minister for Public between the states of Victoria and NSW as to the construction, The Act also establishes the Director, Transport and the maintenance and operation of railway Public Transport Safety. Minister for Roads lines and the construction and maintenance of bridges across the Transport Act 1983 and Ports. Murray River. »» Part II Division 1, Subdivisions 2, 3 and 4 National Rail Corporation » Section 32 (only in so far as it does (Victoria) Act 1991 » not relate to the Roads Corporation, This Act approves and gives effect which is administered by the to an agreement made between Minister for Roads and Ports) the Commonwealth and the states »» Part VI, Division 10 of Victoria, New South Wales, Queensland, and Western Australia »» Part VII, Divisions 4, 4AA, 4A, 4B relating to the establishment and operation of the National Rail This Act is otherwise jointly Corporation Limited. administered with the Minister for Roads and Ports (except Part II, Division 3; sections 21, 22, 23, 24, Public Transport Competition 25, 26, 27, 28, 29, 30, 31 and 35; Part Act 1995 IV and Part VI, Division 8, which are This Act provides for the accreditation administered by the Minister for of passenger bus operators and Roads and Ports). implements a system of service contracts for route service operations. This Act establishes and sets out the functions and powers of the Department of Transport in relation Rail Corporations Act 1996 to transport matters, and those of The main purpose of this Act is to the Roads Corporation as well as establish VicTrack, the Southern establishing a number of statutory Cross Station Authority and V/Line offices. The Act also provides for the Passenger Corporation. It also licensing of commercial vehicles provides a rail access regime, and and for various offences as well as confers certain powers on rail and enforcement powers and sanctions tram operators. relating to rail and tram safety.

Very Fast Train (Route Investigation) Act 1989 The purpose of this Act is to facilitate the investigation of a route for a very fast train linking Melbourne with other centres within or outside the state.

221 Acts administered by EastLink Project Act 2004 Marine Act 1988 the Minister for Roads The Act provides for the facilitation of This Act establishes the Director of and Ports the design, construction, operation, Marine Safety and provides for the maintenance and management of objects, powers, and functions of the the EastLink Freeway as well as the Director. In particular, the Director Accident Towing Services Act 2007* collection and enforcement of tolls regulates marine safety through the This Act aims to promote the safe, relating to use of the Freeway. exercise of its powers and functions. efficient and timely provision of The Act also provides for registration accident towing services through Land Act 1958 of vessels, regulation of the operation licensing the operation of tow trucks, of vessels, offences involving alcohol, and the accreditation of tow truck In so far as it relates to the exercise prevention of pollution of state waters, drivers and operators and managers of power relating to the leases and the adoption of certain international of accident towing services. licences under Subdivisions 1 and 2 conventions, enforcement of various of Division 9 of Part 1 in respect of offences through the issue of marine * This Act is due to commence the land described as Allotment 18 infringement notices, and for other on 1 January 2009 of Section 12, City of Port Melbourne, matters. Parish of Melbourne South, being Chattel Securities Act 1987 the land in Certified Plan No. 119746 Melbourne City Link Act 1995 lodged in the Central Plan Office of Part 3 DSE, known as Station Pier. This Act relates to the construction and operation of the Melbourne City This Act is otherwise administered by This Act is otherwise administered Link, and provides for the fixing, the Minister for Consumer Affairs. by the Minister for Planning, the charging and collection of tolls in Attorney-General, the Minister for This Act makes provision for security relation to the use of vehicles in toll Finance, WorkCover and the Transport zones. interests in motor vehicles, trailers, Accident Commission, the Minister and vessels, including registration for Health, and the Minister for Pollution of Waters by Oil and of interests. Part 3 provides the Corrections. registration requirements for security Noxious Substances Act 1986 interests. Local Government Act 1989 All sections except for sections 30 and 47, which are jointly administered with Crown Land (Reserves) Act 1978 Clauses 4 and 9(3) of Schedule 11 the Minister for Water, Environment and section 123, in so far as it relates Only in so far as it relates to the land and Climate Change, and sections 8, to the revocation of local laws made shown as Crown Allotment 18, section 9, 10, 11, 12, 13, 18, 19, 20, 21, 22, 23, pursuant to the powers conferred by 12, City of Port Melbourne, Parish 23B, 23D, 23E, 23G, 23J, 23K, 23L and those clauses by reason of section 207 of Melbourne South, as shown on 24E, which are administered by the of the Act. Original Plan No. 119746-A lodged in Minister for Water, Environment and Climate Change. the Central Plan Office – (LA/32/0012) This Act is otherwise administered known as Station Pier. by the Minister for Local Government This Act provides for the protection and the Attorney-General. The remaining provisions are of the sea and other waters from pollution by oil and other noxious administered by the Minister This Act provides generally for substances. for Finance, WorkCover and the matters to do with local government Transport Accident Commission, in Victoria. The provisions the Minister for Major Projects, the administered by the Minister for Minister for Planning and the Minister Roads and Ports relate to traffic for Sport, Recreation and Youth control. Affairs.

222 Department of Transport Annual Report 2007-08 Port Services Act 1995 Transport Act 1983 Acts passed All sections and schedules except »» Part II, Division 3 during 2007–08 sections 160, 171 and 173, which are »» Part II, Division 4 (section 32 only administered by the Treasurer, and in so far as it relates to the Roads Minister for Public Transport sections 63AA-63J (inclusive), which Corporation with the balance of that »» Transport Legislation Amendment are administered by the Minister for section being administered by the Act 2007 Finance, WorkCover and the Transport Minister for Public Transport) Accident Commission. »» Section 35 Minister for Roads and Ports This Act establishes the Port of »» Part IV »» Port Services Amendment Act 2007 Melbourne Corporation, Port of Hastings Corporation, and the »» Part VI, Division 8 »» Road Legislation Further Victorian Regional Channels Authority. Amendment Act 2007 The Act also provides for charges and This Act is otherwise jointly licensing for port use. administered with the Minister for Public Transport (except Part II, Road Management Act 2004 Division 1, Subdivisions 2, 3 and 4; Part VI, Division 10 and Part VII, The Act establishes a statutory Divisions 4, 4AA, 4A and 4B, which framework for the management of are administered by the Minister for the road network, facilitating the Public Transport). coordination of various uses of road reserves for roadways, pathways, This Act establishes and sets out infrastructure, and similar purposes. the functions and powers of the Department of Transport in relation to transport matters, and those of Road Safety Act 1986 the Roads Corporation as well as This Act provides for the registration establishing a number of statutory of motor vehicles, licensing of drivers, offices. The Act also provides for the offences involving alcohol or other licensing of commercial vehicles drugs and other provisions regulating and for various offences as well the operation and use of motor as enforcement powers relating to vehicles. railway and tram safety.

Southern and Eastern Integrated Westernport (Crib Point Terminal) Transport Authority Act 2003 Act 1963 The purposes of this Act are to This Act assists the development and establish Southern and Eastern operation of a petroleum terminal Integrated Transport Authority and to at Crib Point by providing for certain facilitate the Southern and Eastern existing and new easements, and Integrated Transport Project. clarifying the status of existing agreements relating to the pipeline running from the terminal site to Dandenong.

223 Whistleblowers Protection Act 2001

Report pursuant to section 104 »» the number and types of disclosed of the Act for the year 1 July 2007 matters referred by DOT to the to 30 June 2008: Ombudsman to investigate: nil »» DOT has publicly accessible »» the number and types of disclosed procedures for managing matters taken over by the disclosures Ombudsman from DOT: nil »» the number and types of »» the number of requests by disclosures made to DOT: nil complainants to have their disclosed matters investigated »» the number of disclosures referred by the Ombudsman due to their by DOT to the Ombudsman to dissatisfaction with the way DOT determine whether they are public is investigating the matter (the interest disclosures: nil circumstances are set out in »» the number and types of disclosed section 74 of the Act): nil matters referred to DOT by the »» the number and types of disclosed Ombudsman: nil matters that DOT declined to investigate: nil.

Freedom of Information Act 1982

The Freedom of Information Act 1982 Access to documents (as defined in gives the public a right of access section 5 of the Act) may be obtained to documents held by government only through written request as departments. detailed in section 17 of the Freedom of Information Act 1982. Requests may For the period 2007–08, DOT received be submitted in writing, addressed to: 301 applications. Of these requests, 85 were from Members of Parliament, Freedom of Information Manager 52 from the media and the remainder Department of Transport were from the general public. During PO Box 2797 the reporting period, the department Melbourne, Victoria 3001 received 13 requests for internal review, with two subsequently Telephone: (03) 9655 6380 progressing to the appeal stage at Email: [email protected] the Victorian Civil and Administrative Alternatively, requests may be Tribunal (VCAT). A further six requests submitted online through Freedom went directly to appeal at VCAT. of Information Online, located at www.foi.vic.gov.au

224 Department of Transport Annual Report 2007-08 Victorian Industry Participation Policy

In October 2003, the Victorian New Projects »» training of staff in the use of leading Parliament passed the Victorian rail geometry systems Industry Participation Policy Act During 2007-08, DOT commenced 20 »» “On the job” training where all 2003 which requires public bodies contracts to which the VIPP applied. employees have the opportunity and departments to report on the Their total value was $646.6 million. to increase skills through implementation of the Victorian The VIPP commitments by contractors implementation of project Industry Participation Policy (VIPP). under these contracts included: Departments and public bodies are »» experience provided to graduates required to apply VIPP in all tenders »» an overall level of local content of coming from and working in a over $3 million in metropolitan approximately 86.5% number of remote locations across Melbourne and $1 million in »» 396 full time equivalent jobs. the nation regional Victoria. »» involvement with an alliance In addition, the following benefits to delivery model and exposure to the Victorian economy in terms of “relationship” based contracting skills and technology transfer were will provide an excellent opportunity provided by contractors under these to develop positive new skills and contracts: behaviours which will be invaluable »» incorporation of value engineering for the delivery of future complex as part of the proposed works rail infrastructure projects within and this will create an opportunity Victoria to increase the skills of locally »» local staff will gain training and use based staff by incorporating new of a specialised computer software technology from Europe package currently not used within »» development of highly robust and Australia. reliable tachometry, data recording and analysis systems for transport Completed Projects applications, having strong export potential There were six projects completed in this period to which the VIPP applied. »» training to users and support staff Their total value was $50.9 million. in rail operations management software The contractors under these contracts achieved the following: »» technology transfer for new innovation such as enhanced »» an overall level of local content of fabrication techniques, solar approximately 96.7% power technology, water-saving »» approximately 90 full time techniques, real-time information equivalent jobs. displays and innovative display techniques In addition, the following benefits to the Victorian economy in terms of skills and technology transfer were provided by contractors under these contracts: »» skills expansion and experience of working in rail system »» training of staff on rail track safety awareness »» training of staff in quality awareness.

225 National Competition Policy Compliance

National Reform Agenda »» providing additional orbital road National Transport Plan links in the metropolitan transport network The Commonwealth Government Infrastructure Australia announced on 29 February 2008 that it »» increasing the capacity of the would work with state governments to The Australian Government created a inner core of the metropolitan rail create a national transport plan. new statutory authority, Infrastructure network Australia, in April 2008. Infrastructure It was agreed that Victoria would put Australia will coordinate the »» managing growth and changing a number of initiatives forward to the planning and deliver of infrastructure supply chain patterns in commodity Council of Australian Governments projects across portfolios, including and processing industries in in October 2008, including a National transport, water, energy and regional Victoria Road Safety Council and a framework telecommunications. »» improving the performance of for national heavy vehicle regulation. In addition, Victoria is working to The first task of the new body will the interstate rail network and improve national harmonisation in be to conduct a national audit of increasing the amount of freight rail and marine safety. infrastructure. carried »» expanding trade capacity of the Port The Victorian Government has been The Victorian Government submitted of Melbourne and Port of Hastings given the responsibility for developing its audit of the state’s transport, by enhancing their landside two key elements of the national water and telecommunications audit infrastructure, transport access and transport plan: on 30 June 2008. The Department of intermodal links. Transport was involved in preparing »» policy initiatives to address urban the transport component of the audit Infrastructure Australia is due to congestion submission. complete a national priority list of »» better ways to plan and invest in infrastructure projects by March 2009. The Victorian submission identified infrastructure. gaps, deficiencies and bottlenecks in the state’s entire infrastructure AusLink 2 However, the Victorian Government network. also provided input into other sections National Transport Links – Growing of the national transport plan. Victoria’s Economy, Victoria’s The main gaps in transport submission for funding under AusLink infrastructure were identified as: 2 was released on 3 July 2007. »» creating extra capacity in Melbourne’s east-west freight and Through AusLink 2, the Victorian passenger corridor Government has negotiated with the Australian Government funding for »» meeting the demand for new 25 projects across the road, rail and transport infrastructure in outer intermodal sectors. metropolitan growth suburbs and regional cities/towns

226 Department of Transport Annual Report 2007-08 Secretary’s Attestation of Risk Management

In accordance with Ministerial “I, Jim Betts, certify that as at 30 June Direction 5.4.4 under the Financial 2008, the Department of Transport Management Act 2004 and the has risk management processes Victorian Government Risk in place broadly consistent with Management Framework – and the Australian/New Zealand Risk following a management review of Management Standard 4360 and an the department’s risk management internal control system is in place that practices – the Secretary makes the enables the executive to understand, following attestation: manage and satisfactorily control risk exposures in significant respects. The Audit Committee verifies this assurance and that the risk profile of the Department of Transport has been critically reviewed within the last 12 months.”

Building Act Compliance

The Directions of the Minister for Finance require this Annual Report to include a statement on the extent of compliance with the building and maintenance provisions of the Building Act 1993, for publicly-owned buildings controlled by DOT.

DOT does comply with the building and maintenance provisions of the Building Act 1993.

227 Disclosure of Major Contracts Compliance

DOT has disclosed all contracts greater than $10 million in value which it entered into in 2007-08.

The disclosed contracts can be viewed at www.contracts.vic.gov.au

Consultant Engagements

There were no consultant engagements in 2007-08 where the cost of the engagement was $100,000 or greater.

In addition, a further six consultancies where the total fee payable to the consultant was less than $100,000 were engaged during the financial year at a total approved project fee of $200,488 and an expenditure of $161,977.

Major Publications

Transport Marine Safety »» Victorian Fares and Ticketing »» Boating Safety & Infrastructure Manual 2008 Program 2007-08 »» Track Record – issues 32,33,34 Corporate »» 2007 Seniors Travel Guide »» Department of Infrastructure »» National Transport Links Annual Report 2006-07 (Growing Victoria’s Economy) »» Maintaining Mobility (The transition from driver to non-driver) »» Victorian Taxi Directorate Strategic Plan »» Victorian Rail Freight Network Review

228 Department of Transport Annual Report 2007-08 Other available information

The Directions of the Minister for »» details of publications produced »» details of assessments and Finance, pursuant to the Financial by DOT and where the publications measures undertaken to improve Management Act 1994 require a range can be obtained the occupational health and safety of information to be prepared in of DOT employees »» details of changes in prices, fees, relation to the financial year. charges, rates and levies charged »» a general statement on industrial This material is itemised below by DOT relations within DOT and details of time lost through industrial and, where not published in this »» details of major external reviews accidents and disputes report, is retained by the accountable carried out on DOT officer and can be made available to »» a list of major committees »» details of major research and Ministers, Members of Parliament sponsored by DOT, the purpose development activities undertaken and the public on request, subject of each committee and the extent by DOT to the limitations of the Freedom of to which the purpose has been Information Act 1982: »» details of overseas visits achieved. »» declarations of pecuniary interests undertaken by DOT, including Requests for information should completed by all relevant DOT a summary of the objectives be directed to: officers for the year ended and outcomes of each visit 30 June 2008 »» details of major promotional, public James Lavery »» details of shares held by senior relations and marketing activities Executive Director DOT officers as nominees or held undertaken by DOT to develop DOT Legal beneficially in a statutory authority community awareness of DOT Department of Transport or subsidiary and the services it provides Level 14, 121 Exhibition Street Melbourne, Victoria, Australia 3000

DOT contact information

Department of Transport

121 Exhibition Street Telephone: (03) 9655 6666 Postal address Melbourne International: +61 3 9655 6666 Victoria Australia 3000 PO Box 2797 Facsimile: (03) 9095 4096 Melbourne International: +61 3 99095 4096 Victoria Australia 3001

Internet: www.transport.vic.gov.au

229 Disclosure Index

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

Ministerial Directions I Legislation Requirement Page reference

REPORT OF OPERATIONS - FRD GUIDANCE

Charter and purpose FRD 22B Manner of establishment and the relevant Ministers 15-17, 166 FRD 22B Objectives, functions, powers and duties 14-23, 118-119 FRD 22B Nature and range of services provided 16-23 Management and structure FRD 22B Organisational structure 18-24

Financial and other information FRD 8A Budget portfolio outcomes 180-187 FRD 10 Disclosure index 230-231 FRD 12A Disclosure of major contracts 228 FRD 15B Executive officer disclosures 167, 175 FRD 22B Operational and budgetary objectives and performance against objectives 8-10, 26-99, 188-208 FRD 22B Employment and conduct principles 176-178 FRD 22B Occupational health and safety policy 176 FRD 22B Summary of the financial results for the year 25 FRD 22B Significant changes in financial position during the year 25 FRD 22B Major changes or factors affecting performance 25 FRD 22B Subsequent events 169 FRD 22B Application and operation of Freedom of Information Act 1982 224 FRD 22B Compliance with building and maintenance provisions of Building Act 1993 227 FRD 22B Statement of National Competition Policy 226 FRD 22B Application and operation of the Whistleblowers Protection Act 2001 224 FRD 22B Details of consultancies over $100,000 228 FRD 22B Details of consultancies under $100,000 228 FRD 22B Statement of availability of other information 229 FRD 24B Reporting of office-based environmental impacts 210-215 FRD 25 Victorian Industry Participation Policy disclosures 225 FDR 29 Workforce data disclosures 175

230 Department of Transport Annual Report 2007-08 Legislation Requirement Page reference

FINANCIAL REPORT

Financial statements required under Part 7 of the FMA SD4.2(a) Statement of changes in equity 106 SD4.2(b) Operating statement 104 SD4.2(b) Balance sheet 105 SD4.2(b) Cash flow statement 107

Other requirements under Standing Directions 4.2

SD4.2(c) Accountable officer’s declaration 102 Compliance with Australian accounting standards SD4.2(c) 109-117 and other authoritative pronouncements SD4.2(c) Compliance with Ministerial Directions 109 SD4.2(d) Rounding of amounts 115 SD4.2(f) Compliance with Model Financial Report N/A

Other disclosures as required by FRD’s in notes to the financial statements FRD 9A Departmental disclosure of administered assets and liabilities 160-164 FRD 13 Disclosure of parliamentary appropriations 130-131 FRD 21A Responsible person and executive officer disclosures 166-167

Legislation Freedom of Information Act 1982 224 Building Act 1993 227 Audit Act 1994 103 Financial Management Act 1994 109 Whistleblowers Protection Act 2001 224 Victorian Industry Participation Policy Act 2003 225 5

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