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Chairman's Report 2007 ANNUAL REPORT Goldfields-Esperance Development Commission Page 2 GEDC 2006 Annual Report Goldfields-Esperance Development Commission TABLE OF CONTENTS • Statement of Compliance 4 • Chairman’s Report 5 • Executive Summary 7 • About Us 9 ¾ Structure 11 ¾ Board of Management 12 • What We Do 15 ¾ Service 1 – Facilitation of the Provision of Appropriate Infrastructure & Industry 15 ¾ Service 2 – Promotion of the Region & its Investment Opportunities 18 • Statutory Information 20 • Performance Indicators 23 • Auditor General Opinion 27 • Financial Statements 29 Page 3 GEDC 2007 Annual Report Goldfields-Esperance Development Commission STATEMENT OF COMPLIANCE Honourable Ljiljanna Ravlich MLA Minister For Local Government; Racing And Gaming; Multicultural Interests And Citizenship; Government Enterprises; Minister Assisting The Minister For Planning And Infrastructure; Goldfields-Esperance; Youth. In accordance with Part 5 Division 2 of the Financial Management Act 2006, we hereby submit for your information and presentation to Parliament, the Annual Report of the Goldfields-Esperance Development Commission for the financial year ended 30 June 2007 The Annual Report has been prepared in accordance with the provisions of the FMA 2006, Treasury Instructions and Audit Act 1985. Colin Stewart Chairman Date: 12 July 2007 Robert Hicks Chief Executive Officer Date: 12 July 2007 Page 4 GEDC 2006 Annual Report Goldfields-Esperance Development Commission CHAIRMAN’S REPORT Whilst the resources boom is good news for the regional, state and national economies, it presents a range of challenges for Development Commissions; none more so than the Goldfields-Esperance Development Commission. In particular the attraction and retention of people is a major challenge along with sourcing of funding for major infrastructure and other projects. The measure of a regional economy is the Gross Regional Product (GRP). The 2005/06 Statistical snapshot shows the Goldfields-Esperance GRP to be $7.322 billion, up 36% on the previous year. Equally telling is the GRP per capita at $136,000 per person based on a population of 54,000. When we compare these figures to other regions, the state and national statistics, the region is indeed making a significant economic contribution. Mining continues to be the biggest contributor to this outstanding performance with the value of minerals and petroleum during this same period at $5.7 billion; this does not include the impending Ravensthorpe Nickel Operations. The towns of Esperance, Ravensthorpe, Hopetoun and Kalgoorlie-Boulder have all experienced unprecedented growth. The provision of hard and soft infrastructure has stretched all participating sectors. Construction and development cost overruns have been a feature that has contributed to delays with many projects. Compare these challenges with those of other towns in the region such as Warburton, Laverton, Menzies and Norseman, and the differences are quite stark. Difficulties attracting and retaining suitably skilled people to the region has seen the introduction of the Goldfields-Esperance Workforce Development Alliance (GEWDA); an overarching strategic think-tank with the aim of planning and developing the region’s workforce. We are hopeful that this “Alliance” will be able to identify and work toward real and constructive solutions to the skilled labour shortage problem. With the expected ongoing growth in the resources industry the GEDC has identified regional transport infrastructure as a priority issue with the formation of the Goldfields- Esperance Transport Upgrade Programme (GETUP) committee. Its purpose is to prioritise transport infrastructure issues and to work to advance them. The GEDC has been very active in promoting issues if regional significance through the Regional Development Council (RDC); the peak advocacy body for the nine development commissions in WA. The RDC met in Esperance for the first time in March 07. Ravensthorpe power has been an ongoing unresolved issue for the GEDC. Our CEO, Robert Hicks, has been working hard to highlight the need for increased capacity to the Ravensthorpe town site and concerns with Western Power’s proposed Distribution Headworks Charge policy. The Esperance Port is critical to the development of the Goldfields-Esperance region. Relations between the Port and the GEDC have been strengthened and enhanced since my appointment as Chairman of the Commission. Furthermore, the GEDC has strengthened its relationships with the Kalgoorlie-Boulder & Esperance Chambers of Commerce & Industry, the Chamber of Minerals & Energy, the nine local government authorities in the region, Goldfields-Esperance Area Consultative Committee, media and Page 5 GEDC 2007 Annual Report Goldfields-Esperance Development Commission other regional stakeholders. The GEDC’s capacity to achieve regional outcomes is very much reliant on the quality of relations with these groups. We are indeed fortunate to have Timothy Dobson, Dr Diarmid Mather and Robert Wedge join the Board of Management during the year and we said goodbye to Gavin Turner who resigned in order to move to greener pastures in York. During the year we had a change of Minister. We thank outgoing Minister for Goldfields- Esperance, John Bowler, for his outstanding contribution to the portfolio and we welcome incoming Minister, Ljiljanna Ravlich. For the GEDC to continue to be effective it is important that our voice be heard in Government. We look forward to working with Minister Ravlich to achieve that outcome. Over the past twelve months the GEDC has achieved its goal of lifting its profile and effectiveness. Therefore it gives me great pleasure to report that the GEDC is performing well in challenging times and with a limited budget. This could not have been achieved without an active, responsive and supportive Board of Management along with a staff that we can all be proud of in terms of their effort, professionalism and total dedication. Colin Stewart Chairman Page 6 GEDC 2006 Annual Report Goldfields-Esperance Development Commission EXECUTIVE SUMMARY In 2006-2007 the mining and agriculture industries continued to be the major economic drivers of the Goldfields-Esperance Region. The continuing demand for commodities by other countries has meant that there has been unprecedented demand for skilled labour and infrastructure. We have been active in supporting businesses and people that have chosen to live and work in our great region. We have worked in close partnership with community organisations, industry, local government authorities and government agencies to ensure social and economic infrastructure continues to keep pace with development. Relations with these stakeholders was strengthened and this is evident by the “Client Survey” that shows: • 82% agree that we make an economic contribution to the region • 75% agree that we make a social contribution to the region • 73% agree that we make a balanced contribution to the region Indeed we have deliberately lifted our public profile so the community can better understand and appreciate what it is that we do for the region. We have supported a range of projects and initiatives that have resulted in the expansion and diversification of our region’s economic development. There is currently over $3 billion worth of projects currently under construction and these projects have delivered challenges for the Commission, particularly in the areas of labour and transport. We have identified labour shortage and transport infrastructure as the key priorities for the region. Actions taken during the year to address these priorities have been: 1. Formation of the Goldfields-Esperance Workforce Development Alliance (GEWDA). This bringing together of key community stakeholders has been successful in attracting funding from the Department of Education and Training to research and devise a Workforce Development Plan for the region. The Plan will culminate in an Action Plan that will be driven and monitored by the “Alliance” as the lead agency. 2. Formation of the Goldfields-Esperance Transport Upgrade Program (GETUP). Formed as a result of existing structures being unable to deliver outcomes. As the lead agency, we have been able to bring together key transport industry stakeholders to highlight priority areas and to drive forward for outcomes. It is no coincidence that as a result of our participation in a transport delegation to Canberra in February 2007, the Federal Government has granted the City of Kalgoorlie-Boulder $3 million to progress the concept of a common user inter- modal hub in the City. Page 7 GEDC 2007 Annual Report Goldfields-Esperance Development Commission Other major projects and significant achievements for the year are detailed under our Service Provisions. Services provided and delivered by us include: • Regional Economic Modelling (REMPLAN) • Visa certification of skilled migrants • Grants information and Regional Development Scheme funding • Industry Development Centre website to encourage local purchasing • Aboriginal Economic Development • Statistics information Our annually reviewed 5 year Strategic Plan continues to be committed to the State Government’s “Better Planning; Better Services – A Strategic Planning Framework for the Western Australian Public Service”. We have also complied with all requirements as set down under the Public Sector Standards, various Codes and Public sector Management Act 1994. Our “Net Cost of Services” for the financial year was $1.9 million on 11 FTE staff. The Outcome Based Management
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