NSW Department of Primary Industries

ANNUAL REPORT 2004–05 NSW Department of Primary Industries, profitable and sustainable primary industries building vibrant communities

Con t en ts

Dir ect or -Gener al’s lett er t o Minist er 1

About NSW DPI 2

Ov erview b y the Dir ect or -Gener al 3

C orpor a t e Structur e 6

A g ricultur e and Fisheries Division 7

Miner al Resour c es Division 15

For ests NSW 21

Scienc e and Resear ch Division 27

Biosecurity, C omplianc e and Mine Safety Division 33

Str a t egy, Policy and C ommunica tions Division 40

C orpor a t e Servic es Division 44

Financial Sta t emen ts 47

Appendic es 91

We wish to thank all the staff of NSW DPI for their contr ibution to this Annual R eport. An n u a l R e p o rt Wo r ki n g G ro u p Anthony S chofield (Project M anager), G ary Want, Karen Var num, Ann D enlow, Ian R oth, J o a n n e Fin l ay, I a n H a l l e t t

©State of New S outh Wales 2005 NSW D epartment of Pr imary Industr ies ISSN 1833-2080

NSW D epartment of Pr imary Industr ies has made an electronic copy of this Annual R eport available on its website, allowing fewer copies to be pr inted and keeping production costs to a minimum.

Total pr inting and production cost $25 620.00

Pr i nte d by U n i o n Offs e t Pr i nte r s, Ca n b e r ra , Au s t ra l i a New South Wales DEPARTMENT OF PRIMARY INDUSTRIES

The Hon Ian Macdonald MLC Minister for Natural Resources Minister for Primary Industries Minister for Mineral Resources Parliament House Macquarie St SYDNEY NSW 2000

30 November 2005

Dear Minister

I am pleased to submit for presentation to Parliament the annual report of the NSW Department of Primary Industries for the period 1 July 2004 to 30 June 2005.

This is the first report of the Department which was formed following amalgamation of the four former departments, NSW Agriculture, NSW Fisheries, the Department of Mineral Resources and State Forests of NSW.

The report has been prepared in accordance with the requirements of the Annual Reports (Departments) Act 1985, the Public Finance and Audit Act 1983 and the regulations under those Acts.

Clarification that the audited financial statements should include financial statements of Forests NSW, a Public Trading division which is required to prepare a separate annual report under the Annual Reports (Statutory Bodies) Act 1984, resulted in some delays. An extension of one month was sought and approved under section 16 of the Annual Reports (Departments) Act 1985.

Yours sincerely

Barry Buffier Director-General NSW Department of Primary Industries

Level 6, 201 Elizabeth Street SYDNEY NSW 2000 PO Box K220 Haymarket NSW 1240 Telephone 02 8289 3999 Facsimile 02 9283 7201 Website www.dpi.nsw.gov.au

NSW Department of Primary Industries ANNUAL REPORT 2004–05 1 About NSW DPI

The NSW Department of Primary Industries was formed Our staff bring professional expertise from a range of in July 2004 with the amalgamation of disciplines and include crop agronomists, scientific NSW Agriculture, NSW Fisheries, the Department of research officers, horticulturalists, geologists, mining Mineral Resources and State F orests of NSW. engineers, environmental managers, veterinarians and W e have approximately 3600 staff based in over livestock officers. 130 locations across the State.

Our Vision, Values and Strategic Directions Profitable and sustainable primary industries building vibrant communities

To achiev e our vision NSW DPI has identified the f ollowing key result areas

1. Strong economic W e will contribute to the strong economic performance of primary industries in NSW by growing performance of productivity , investing in research and development, and facilitating the use of innovative primary industries technologies. W e will manage our public trading enterprise, Forests NSW, in a commercial manner.

2. Appropriate access to Our policies and operations will demonstrate the principles of sustainable development. W e will and wise management of work with primary industries to ensure that their operations reflect these principles, and that natural resources primary industries have appropriate access to natural resources.

3. Healthy and safe industries W e will support the development of healthy products and safe primary industries by proactively managing risks presented by pests, weeds, diseases, chemicals and natural disasters, and by regulating health and safety in the mining industry .

4. Stronger voice for primary W e will create a stronger voice for primary industries in government decision-making by leading industries in government an informed debate on primary industries issues. Through community consultation and by decision-making providing information and expert advice, we will convey to communities the social and economic benefits of sustainable primary industries.

5. Excellence in service W e will provide a safe, satisfying and fair work environment, and have a skilled team working delivery to stakeholders together to deliver excellent services and outcomes for our stakeholders.

The values that guide us in achieving our vision are: Integrity W e will behave ethically and act with honesty, fairness, courage and loyalty. Professionalism W e will conduct ourselves in a business-like manner to deliver efficient and expert services and we will be accountable for our decisions. Innovation W e will strive for excellence, creativity, leading-edge science and quality. Respect W e will respect each other, our families, our clients, and those with different ideas and from diverse backgrounds and cultures. W e are committed to a leadership approach that gives effect to our values. W e will uphold our values in all dealings with clients, stakeholders and each other.

2 NSW Department of Primary Industries ANNUAL REPORT 2004–05 Ov erview by the Director-General

A n ew a g e n cy to a d vo cate fo r p r i m a ry My ove rv i e w a l s o p re s e n t s s o m e o f t h e De p a rt m e n t’s m a j o r industries achie vements for 2004-05 in the context of the ke y result ar eas . The establishment of the NSW Department of Primary Industries on 1 July 2004 began a ne w chapter in the history Divisions and branches are currently de veloping their plans, o f g ove rn m e n t s te w a rd s h i p o f a gri c u l t u r a l, fo re s t ry, fi s h e ry which dovetail with the corporate plan and include detailed a n d m i n i n g re s o u rc e s. W h i l e t h e fo rm e r De p a rt m e n t o f t a rg e t s a n d p e rfo rm a n c e s t r a te gi e s. Agri c u l t u re, N S W Fi s h e ri e s, De p a rt m e n t o f Mi n e r a l Re s o u rc e s and State Forests of NSW had worked cooperatively in many St ro n g e co n o m i c p e rfo r m a n ce o f ways, the amalgamation is already allowing us to build on primary industries our considerable strengths – which include world class In t h e m i n i n g s e cto r, t h e grow t h i n g l o b a l c o m m o d i ty p ri c e s s c i e n c e fo r p ri m a ry i n d u s t ri e s a n d e ffe ct i ve p a rt n e r s h i p s w i t h contributed in part to the record estimated $9.2 billion value industry – to achie ve the best possible outcomes for primary of NSW mineral production in 2004-05, which was up by over industries and communities in NSW. a t h i rd o n t h e p re v i o u s ye a r. Co a l p ro d u ct i o n a c c o u n te d fo r Th e De p a rt m e n t n ow h a s t h e c a p a c i ty to b e m o re e ffe ct i ve almost three-quarters of the total, and metallic and mineral e xte rn a l l y t h a n fo u r s e p a r a te a g e n c i e s. Th i s w i l l gi ve a m u c h p ro d u ct i o n a c c o u n te d fo r t h e re m a i n d e r. stronger voice to the primary industries that underpin the Roy a l ty e a rn i n g s fo r t h e S t a te t h ro u g h t h e De p a rt m e n t’s economic health and viability of NSW regional communities. Mi n e r a l Re s o u rc e s D i v i s i o n we re a l s o a t re c o rd l e ve l s, w i t h We are also much better placed strategically to de velop net royalties collected at $396 million – the majority coming comprehensive policies for the sector. At the same time, the f ro m c o a l. Th e i n t ro d u ct i o n by t h e N S W Gove rn m e n t o f a n linkage in the ne w Department of the primary production a d v a l o re m re gi m e fo r c o a l roy a l t i e s w a s a ke y f a cto r i n t h e sectors with natural resource management promotes long- re c o rd roy a l ty c o l l e ct i o n . te rm e nv i ro n m e n t a l s u s t a i n a b i l i ty. Th e b e n e fi t s f ro m t h e Department’s establishment extend right to the individual Despite a downturn in the housing market, impacting the consumer, as a single agency helps ensure that our food timber market, Forests NSW achie ved improved operating supply remains among the safest in the world. efficiencies, ne w re venue streams and asset rationalisation enabling them to deliver a dividend of $32.5 million to the Se t t i n g t h e s t rate g i c d i re ct i o n Gove rn m e n t . O n e o f t h e fi r s t t a s k s fo r t h e N S W De p a rt m e n t o f Pri m a ry Th e S t a te’s $ 8 . 2 b i l l i o n p e r ye a r a gri c u l t u re a n d fi s h e ri e s In d u s t ri e s w a s to i n te gr a te t h e fo u r s e p a r a te c o rp o r a te industries continued to be impacted by the worst drought components through the de velopment of a unified vision for in 100 years resulting in a se vere decline in the value of the organisation. This included the identification of the ke y production. At 30 June 2005, 89 per cent of the State was result areas that contribute to achie vement of that vision and d ro u g h t d e c l a re d. the values that allow us to work effectively and consistently both with each other and with our many stakeholders. In Dro u g ht s u p p o rt a n d a s s i s t a n ce setting the strategic direction, we adopted a consultative The benefit of establishing a single primary industries p ro c e s s l e d by t h e De p a rt m e n t’s b o a rd o f m a n a g e m e n t agency was amply demonstrated in the coordinated and senior staff. By doing so we were able to draw on the p rov i s i o n o f s u p p o rt by t h e N S W De p a rt m e n t o f Pri m a ry extensive industry knowledge of our staff and their ideas for In d u s t ri e s fo r N S W d ro u g h t- a ffe cte d f a rm e r s. Ma ny a re a s o f achie ving the outcomes we want. t h e De p a rt m e n t we re re s p o n s i b l e fo r i m p l e m e n t i n g a w i d e- The result of our endeavours is the 2005-2008 Corporate ranging package of measures including financial support Plan, the principal elements of which are set out in the through transport subsidies; management support through i n t ro d u cto ry s e ct i o n o f t h i s re p o rt . A l t h o u g h n e xt ye a r’s technical advice and educational packages; and family annual report will be the first to re vie w progress against the support through the employment of specialist drought plan, this report offers a window to the future through the support workers and the holding of farm family gatherings. inclusion of case studies relating to each of the five ke y result There was also a significant commitment to the de velopment ar eas . of drought policy, which enabled the provision of exceptional NSW Department of Primary Industries ANNUAL REPORT 2004–05 3 Ov erview by the Director-General

circumstances assistance through ongoing negotiations To encourage uptake of the National Livestock Identification and submission of detailed area-based applications to the S y s te m , N S W D P I j o i n e d w i t h t h e Vi cto ri a n Gove rn m e n t i n Au s t r a l i a n Gove rn m e n t . a scheme designed to reduce the price of the electronic NLIS tags. The scheme is administered through Rural Lands Ap p ro p r i ate a cce s s to a n d w i s e Pro te ct i o n B o a rd s i n N S W. At 3 0 J u n e 2 0 0 5 a p p rox i m a te l y m a n a g e m e nt o f n at u ra l re s o u rce s 1.5 million subsidised tags had been ordered, representing savings to producers of more than $1 million. Th e De p a rt m e n t re p re s e n te d t h e m i n i n g a n d fo re s t ry perspective in discussions on future management of the N S W f a rm e r s a l s o f a c e d a ve ry re a l t h re a t to p ro d u ct i o n Brigalow Belt South and Nande war bioregions in western t h ro u g h t h e l a rg e s t l o c u s t p l a g u e o n re c o rd. In a c o o rd i n a te d NSW. This contributed to a final outcome that successfully e ffo rt w i t h R u r a l L a n d s Pro te ct i o n B o a rd s, o t h e r a g e n c i e s a n d balances economic and environmental interests. Under landowners, NSW DPI helped to save over $1 billion of crops the decision announced by the NSW Government in May and pastures during a se ven-month campaign. The ke ys to 2005, certain sections in the bioregions will be accessible for success were detailed initial action planning and adaptive continued forestry operations and for mining exploration p l a n n i n g a s t h e c a m p a i gn p ro gre s s e d. while the remainder will be declared conservation reserves. The decision, which was preceded by extensive scientific Wo r l d -c l a s s re s e a rc h analysis and stakeholder consultation, also guarantees security At t h e N S W Fa rm e r s’ As s o c i a t i o n A n n u a l Co n fe re n c e i n 2 0 0 4 , for the existing local farming and minerals industries. t h e Mi n i s te r fo r Pri m a ry In d u s t ri e s a n n o u n c e d t h e $ 2 5 m i l l i o n Management of fisheries resources saw the extension of the Towards 2020 plan to reinvigorate science, technology and share management scheme to all major commercial fisheries re s e a rc h fo r N S W p ri m a ry i n d u s t ri e s. Th e p ri n c i p l e u n d e rl y i n g in 2004-05. Under the scheme, which replaces the earlier the plan was that the sale of our surplus land assets would system of annual licences, shareholding fishers will have a f u n d s t a te-o f - t h e- a rt f a c i l i t i e s a t ke y re gi o n a l c e n t re s. In t u rn , major role in deciding how the wild resources from which the ne w facilities would attract external research funding and the y earn a living will be managed. support the continued employment of leading scientists and Fisheries habitat conservation initiatives for the year included re s e a rc h e r s. the North Coast floodgates project, which has restored fish During the year we were able to sell a number of properties passage to over 600 kilometres of estuarine creeks, and which will generate $7.5 million for reinvestment in ne w d e ve l o p m e n t o f a n a t i ve fi s h re c ove ry s t r a te g y fo r t h e S n owy facilities at our Centres of Excellence across the State. River. Working with the Department on implementation of the Towards 2020 plan will be the ne wly established Ministerial H e a l t hy, s a fe a n d p ro d u ct i ve i n d u s t r i e s Ad v i s o ry Co u n c i l o n Pri m a ry In d u s t ri e s Sc i e n c e s c h a i re d by Safety has always constituted a major issue for the mining D r J o h n Ke n i ry. i n d u s t ry. As t h e re s u l t o f a re v i e w o f m i n e s a fe ty c o n d u cte d by the Hon. Ne ville Wran, we have a series of recommendations Part n e r s h i p s to e n h a n c e s a fe ty. Th e s e s te m f ro m t h e ke y re v i e w fi n d i n g Increasingly, scientific and technological breakthroughs that a more cooperative approach by industry, unions are being made by consortiums of public and private a n d g ove rn m e n t i s re q u i re d. Th e Gove rn m e n t i s c u rre n t l y organisations that bring different expertise and perspectives considering the recommendations. to the innovation mix rather than by individual agencies. This year marked the first phase in the introduction of an In 2004-05 the Department became a partner in six ne w e l e ct ro n i c t a g gi n g s y s te m fo r Au s t r a l i a’s c a t t l e h e rd, t h e national cooperative research centres that receive the bulk National Livestock Identification System (NLIS). This is a of their funding from the Australian Government. We also ground-breaking program which will limit stock losses should entered a series of joint ventures – the E H Graham Centre for diseases occur and will help protect valuable export markets. Agri c u l t u r a l In n ov a t i o n b a s e d i n Wa g g a Wa g g a , t h e Ce n t re Our role during 2004-05 involved seeking compliance from for Coastal Agricultural Landscapes at Wollongbar and the all sections of the cattle industry through an extensive Pri m a ry In d u s t ri e s In n ov a t i o n Ce n t re a t Ta mwo rt h . training and promotional program and through provision of financial support for installation of NLIS de vice readers to NSW We also have a lead role in the collaborative research and s a l e y a rd s, a b a t to i r s a n d fe e d l o t s. de velopment project, FutureDairy. Based at our Elizabeth

4 NSW Department of Primary Industries ANNUAL REPORT 2004–05 Ma c a rt h u r Agri c u l t u r a l In s t i t u te t h e p ro j e ct w i l l re vo l u t i o n i s e able to do so is a tribute to the commitment of the board of the Australian dairy industry through research into ne w m a n a g e m e n t a n d o f a l l s t a ff. We h ave a l s o b e e n fo rt u n a te to fodder and feeding systems and ne w automated milking have the support and encouragement of a Minister who had systems . a clear vision and was the catalyst for this amalgamation. Together we have built strong relationships with industry Building the Department a n d h ave re m a i n e d fo c u s e d o n s e rv i c e d e l i ve ry d u ri n g t h e The amalgamation of four agencies, each with their own transitional period. I am confident that together we are h i s to ry, c u l t u re a n d s y s te m s, p re s e n te d m a ny c h a l l e n g e s. b u i l d i n g a gre a t De p a rt m e n t . We e m b a rke d o n a w i d e- re a c h i n g p ro gr a m to e x p l a i n t h e rationale for the creation of the ne w Department and involve all staff in the change process. Staff had the opportunity to learn about the broader environment in which the y are now operating, to give feedback, and to ask questions at information sessions held at over 40 locations across the State. During the establishment phase, the management team consulted regularly with industry, staff and unions and implemented planned changes as quickly as possible in order to minimise the impact on staff. Barry Buffier Th e fo rm e r De p a rt m e n t o f Mi n e r a l Re s o u rc e s w a s p e rh a p s D i re cto r-Ge n e r a l subject to the most significant degree of change as staff moved from Sydne y to the Hunter region just five months a fte r t h e n e w De p a rt m e n t c a m e i n to o p e r a t i o n . Th e re we re ine vitable staff losses. A core group of experienced staff howe ver ensured maintenance of an uninterrupted service to i n d u s t ry. We n ow h ave a re c r u i t m e n t c a m p a i gn u n d e rw ay to fill identified skill gaps.

Cor p o rate s e rv i ce s Fo r t h e De p a rt m e n t , t h e re we re o p p o rt u n i t i e s to i m p rove service delivery by reducing the duplication of corporate support functions across the four agencies and, by rationalising assets, to invest in areas that will improve ove r a l l e ffi c i e n cy. Co rp o r a te s e rv i c e s f u n ct i o n s h ave n ow been consolidated at our headquarters at Orange. This initiative, along with the establishment of single, department- wide human resources and financial management s y s te m s, i s a l re a d y p ro d u c i n g s i gn i fi c a n t s av i n g s. Th e staged implementation of an integrated information and communications technology network is also reducing costs while allowing introduction of the latest technologies. After negotiation with the Public Service Association, NSW DPI implemented a voluntary redundancy program with a vie w to reducing duplication in management, corporate s u p p o rt a n d o t h e r n o n f ro n t- l i n e p o s i t i o n s. Th re e h u n d re d and thirty staff left DPI during the year as a result of this p ro gr a m . A l l we re o ffe re d s u p p o rt t h ro u g h t h e J o b As s i s t P r ogram. In our first 12 months of operation, the NSW Department o f Pri m a ry In d u s t ri e s h a s a c h i e ve d a l o t . Th a t we h ave b e e n NSW Department of Primary Industries ANNUAL REPORT 2004–05 5 CORPORATE STRUCTURE

Hon. Ian Macdonald, MLC Hon. Kerry Hickey, MP Minister for Primary Industries Minister for Mineral Resources

Barry Buffier Director-General

Change Program Office

Dr Richar d Sheldrak e Alan C outts Peter Duncan Dr Mik e C urll Rena ta Br ooks Wendy Stamp Dr Alan Gleeson

Deputy Deputy Chief Ex ecutiv e Deputy Ex ecutiv e Dir ect or Ex ecutiv e Dir ect or Ex ecutiv e Dir ect or Dir ect or-Gener al Dir ect or-Gener al Offic er Dir ect or-Gener al Biosecurity, Complianc e S tr a t egy, Policy & Corpor a t e Servic es A gricultur e , F isheries Miner al Resour c es For ests NSW Scienc e & Resear ch & Mine Safety Communica tions & Regional (P rimary Industries Rela tions Tr ading)

A gricultur e & F isheries Miner al Resour c es P rimary Industries Scienc e & Resear ch Biosecurity, Complianc e S tr a t egy, Policy & Corpor a t e Servic es Division Division Tr ading Division Division & Mine Safety Division Communica tions Division P romot es industry and Leads the st ew ardship Forests NSW oper a t es as a Undertakes str a t egic Dev elops and deliv ers Division Dev elops , manages and e xport dev elopmen t b y of the S ta t e’s miner al public tr ading en t erprise scienc e and research t o in t egr a t ed str a t egies , Pla ys a lead role in ad vises on syst ems , w orking with industry t o resourc es t o facilita t e sitting within this enhanc e the gro wth, progr ams and tr ansla ting go v ernmen t infr astr ucture , policies , impro v e the sustainability profitable and sustainable Division. It manages the sustainability and responses in the areas priorities and industry guidelines and standards and profitability of the dev elopmen t , effectiv e forests esta t e t o pro vide biosecurity of primary of threa ts posed b y needs in t o the t o pro vide servic es t o agriculture and fisheries en vironmen tal timber no w and in t o the industries . Dev elops emergency situa tions Departmen t’s policy NSW DPI and meet sect ors . Manages the managemen t , and safe future . inno v a tiv e solutions and and biologic al and and c orpor a t e agenda. go v ernmen t requiremen ts sustainable recrea tional and responsible mining This Division is also t echnologies . Coordina t es chemic al agen ts , safety Coordina t es whole-of- in the areas of financ e use of the S ta t e’s fisheries responsible for dev eloping research in v estmen ts and in the mining industry, go v ernmen t approaches and administr a tion, resourc es and marine c ommercial activities and fost ers scienc e allianc es and main t enanc e and and manages str a t egic human resourc es , assets , prot ect ed areas t o opportunities for NSW DPI and join t v en tures . enforc emen t of NSW DPI and c on t en tious issues . informa tion t echnology c onserv e ec osyst ems Underpins crea tiv e legisla tion Facilita t es str a t egic and legal servic es while main taining solutions t o enhanc e c ommunic a tions and appropria t e ac c ess public policy promot es the w ork of the Departmen t and primary industries

6 NSW Department of Primary Industries ANNUAL REPORT 2004–05 AGRICULTURE AND FISHERIES DIVISION

NSW Department of Primary Industries ANNUAL REPORT 2004–05 7 Primary Industries Trading divisions to promote delivery of an AGRICULTURE AND FISHERIES integrated service to stakeholders. DIVISION Also to this end, the Division liaised with key industry representatives to develop the Strategic Plan for Industry Development and Extension Services. The plan will guide Nature and scope of activities the Division’s activities by ensuring that resources are The Agriculture and Fisheries Division has diverse allocated to programs aligned both with industry directions responsibilities. Foremost among these are delivering and with government policy for achieving economic and advisory services and production solutions for agriculture, and environmental sustainability. managing sustainable commercial and recreational use of NSW fisheries resources. Total agricultural, wildcatch fisheries Holistic approach to drought support and aquaculture production in NSW is worth approximately The most significant issue impacting on the NSW beef and $8.2 billion per year. sheep industry in 2004-05 was continuing drought conditions. The Division’s six branches are: Every district in NSW was affected by the worst drought in a century and, at 30 June 2005, 89 per cent of the State was • the Primary Industries Export Branch (PRIMEX) which aims drought declared. to identify and open up export opportunities for NSW agricultural and fishery industries, particularly in Asia, India Direct support from the NSW Government during 2004-05 and the Middle East included $6 million in exceptional circumstances interest rate subsidies and more than $18.5 million in transport subsidies • the Extensive Industries Development Branch which for stock, water and fodder. works with broadacre, pastoral and private forestry industry managers across NSW to advance the sustainable At the frontline, NSW DPI officers disseminated technical development of a profitable farming sector feeding and management information and conducted drought activities attended by more than 10 000 producers. • the Intensive Industries Development Branch which uses Over the course of the year, officers handled up to 30 its skills in production and supply chain management in telephone enquiries per day, many relating to optimal stock working with intensive livestock, horticulture, viticulture, feeding and sale strategies. cotton and rice industries. The branch, together with the Extensive Industries Development Branch, collaborates Two important sources of advice to NSW producers were our with other NSW DPI divisions on strategic development of Drought Survival Guide and Drought Recovery Guide booklets. agricultural industries Both publications were available in hard copy – 45 000 copies were distributed – and on the Department’s • the Fisheries Management Branch – responsible for website. commercial fisheries, aquaculture, aquatic conservation, habitat protection and rehabilitation, and recreational Plague locusts compounded the impact of the drought on fishing crops and pastures throughout the tablelands, slopes and plains of NSW. The Division’s staff responded with technical • the Regional Relations and Education Branch which aims advice to producers and devoted over 1311 person-days to to improve NSW DPI services by developing productive assist the Biosecurity, Compliance and Mine Safety Division in relationships with regional organisations and by the control program. enhancing the Department’s profile. The branch delivers accredited training to school leavers, farmers, farm Staff also played a major role in preparing and assisting advisors and agribusiness through PROfarm courses producers in the worst affected areas within NSW to apply for Commonwealth exceptional circumstances relief. (The section • Animal Welfare which promotes the welfare of animals, in this report on the Strategy, Policy and Communications striking a balance between community and market Division has details.) expectations and the economic feasibility of the industries involved. Social support for drought-affected farmers and communities has proved to be as important as technical information on Major outcomes achieved managing a business during drought. In January 2003 the Division’s drought support workers began to link farmers to 2004-05 was a year of significant achievement for the the welfare services offered by community and government Agriculture and Fisheries Division, marking our emergence as agencies to farm families in drought. Due to the ongoing an effective service provider to the agriculture, fisheries and drought and high demand, by June 2005 a team of 10 private forestry industries of NSW. drought support workers were stationed throughout NSW. As NSW DPI’s principal contact with these industries, the They organised farm family gatherings and drought support Division initiated close working relationships with the Science workshops that reached a total of more than 27 000 farmers. and Research, Biosecurity, Compliance and Mine Safety and

8 NSW Department of Primary Industries ANNUAL REPORT 2004–05 Agriculture • running research and development ‘distillation workshops’ attended by over 200 scientists and extension specialists. National Livestock Identification System The workshops will have a major impact on adoption of the valuable technology developed by the Centre NSW DPI worked with all sectors of the NSW cattle industry to successfully implement the National Livestock Identification • conducting extension events to present the research to System (NLIS) – the most significant advance in stock more than 5000 NSW beef producers. identification and tracing ever introduced to the Australian cattle industry. In the first phase of the program, we sought Educating livestock producers support and compliance from over 81 000 producers (the In partnership with peak body Meat and Livestock Australia largest number in Australia), 57 saleyards, 26 abattoirs, and (MLA), the Division presented the MLA’s More Beef from more than 300 stock and station agents across the State. Pastures training program. The 1200 plus producers who Designed to allow electronic tracing of the nation’s cattle attended training developed skills in pasture production and herd, the NLIS will limit the losses incurred should an exotic utilisation, beef cattle genetics, farm management and beef disease outbreak or chemical residue case affect the $4 billion marketing. NSW cattle industry. Implementation commenced in NSW Also in association with MLA, the Division produced on 1 July 2004 with the requirement to identify all stock born the workshop, Wean More Lambs, along with a related after that date. It is being underwritten by $5.4 million in NSW publication. By helping producers improve flock reproductive government funding over three years. rates, the package will enable them to profit from forecast In 2004-05, divisional staff conducted NLIS educational increases in lamb and sheepmeat exports over the coming activities attended by more than 14 000 people and organised years. several tours to Victoria for saleyard and agent staff to observe NLIS in action. They also staffed an NLIS hotline, handling over A clean approach to pesticide residues 400 calls per month. NSW government agencies have monitored pesticide residues By the end of June 2005, 27 000 producers had purchased in NSW fresh fruit and vegetables since 1988, with results over four million identification devices and Property obtained comparable with international standards. A new Identification Code cards had been issued to more than initiative, CleanFresh, will now take monitoring a step further 81 000 properties across NSW (including sheep properties). by linking on-farm practice to residue results with the aim of The cards will be a ready reference for producers when buying achieving improved compliance through the optimal use of and selling cattle. pesticides. The major phase of the NLIS program will begin in July 2005 Backed by a $1.47 million government investment over three when all stock leaving a property are required to have a NLIS years, CleanFresh will obtain expanded information through device for reading at saleyards and abattoirs. continued surveys of randomly selected produce at Sydney markets combined with grower surveys. NSW DPI will also Better stock handling in the beef industry increase its residue testing capabilities under the CleanFresh program and conduct a wider range of tests to assist growers After several serious accidents in saleyards and on farms, the in meeting quality assurance requirements. NSW DPI beef extension team and the Saleyard Operators Association identified the need for training to help improve Retaining good agricultural land beef livestock handling. The two-day training program and manual developed cover occupational health and safety, Rapid population growth on the North Coast of NSW over animal behaviour and handling, animal welfare and meat the past decade has increased pressure for subdivision of quality. good agricultural land for other purposes. The increasing fragmentation of agricultural land prompted a cooperative The training package, designed for agents, saleyard staff, initiative to develop a new model for agricultural land stock carriers, abattoir staff, producers and students was protection, the Farmland Protection Project. Those involved subsequently delivered in both NSW and Victoria. were NSW DPI, the Department of Infrastructure, Planning and Natural Resources, the Northern Rivers Catchment Promoting beef research uptake Management Authority and the local community. The Division led uptake of research from the national The Farmland Protection Project was piloted in the Northern Cooperative Research Centre – Cattle and Beef Quality Rivers region over the last three years and concluded in by interpreting the results, packaging these into practical early 2005. It identified and mapped agricultural lands of production chain management systems, and delivering state and regional significance which will be protected from information to the NSW and Australian beef industries. further residential development. The mapping, which should Promotions included: inform future settlement plans, pinpointed the need to • publishing two booklets and two CDs summarising much develop strategies for managing potential conflicts between of the Centre’s 14-year research and distributing these agricultural and residential land uses at the urban/rural nationwide interface.

NSW Department of Primary Industries ANNUAL REPORT 2004–05 9 Cutting water consumption by intensive plant industries Better crops NSW intensive plant industries include cotton, rice, Responding to a serious outbreak of stripe rust in wheat horticulture and viticulture. All depend on irrigation. in 2003-04, NSW DPI’s crop agronomists initiated a major In response to the drought and reduced water allocations, extension campaign on management of the disease to the Division developed a range of programs to assist farmers prepare for the 2004-05 crop. As part of the campaign maximise farm profitability while minimising water use. we distributed a new NSW DPI publication, Stripe Rust - Understanding the disease in wheat. The Grains Research Rice farmers were advised to integrate rice farming with and Development Corporation (GRDC) also distributed the winter cropping, using soil moisture levels from rice for cereal publication nationally with the premier grains newspaper production through direct drilling. Ground Cover. In the horticulture and viticulture industries, the Division NSW DPI economic research in 2004 clearly demonstrated assisted farmers in accurately measuring water use and the cost benefits of conservation farming (reduced or nil installing low water use irrigation systems. And, in the cotton cultivation prior to crop sowing) in northern NSW. As only industry, the Division distributed copies of the WATERpak to about 20 per cent of farmers have adopted conservation 1100 growers and consultants. The WATERpak, which details farming, crop agronomists conducted 20 focus group methods for improved water efficiency, will help the cotton meetings to identify the barriers to adoption of no-tillage industry to meet the targeted 15 per cent reduction in water systems. The issue featured on ABC TV’s Landline program use over the next five years. in June 2005 and will be the subject of a major industry conference in 2005-06. Guidelines for greenhouse horticulture The Division was successful in winning a tender to undertake The greenhouse industry, one of the fastest growing GRDC funded national variety testing of cereals and pulses horticulture sectors in NSW, is estimated to be worth throughout NSW. The testing will give all farmers objective $500 million annually at farm gate. comparative data on the relative performance of all new With industry growth, a planning issue has arisen as growers varieties released on the market. Producers view this in urban areas switch to using protected structures for information as critical as plant breeding in Australia has largely vegetable and flower production to reduce the risk of been privatised, leading to increased commercial competition crop loss. Many local government areas, however, have and the release of lines about which farmers have little reliable different planning requirements – an anomaly that leads to information. inconsistencies in development approval between adjoining council areas. Agricultural education expands The Division produced a new booklet, Guidelines for the Murrumbidgee College of Agriculture continued expansion Development of Greenhouse Horticulture to bring uniformity to of its short course program. Despite the severe drought in the local government planning processes. The booklet discusses surrounding region, the program over-performed by more topics such as buffer zones, waste water and nutrient control than 100 per cent against such measures as the numbers of off-farm, and visible aesthetics and presents courses offered, days of training, participants serviced and a common set of planning recommendations. number of towns and localities serviced. The College’s Aboriginal Rural Training Program provides Supporting intensive animal industries vocational education and training opportunities for The intensive animal industries of poultry, pork and dairy are Indigenous Australians from lands councils, schools, juvenile Australia’s largest feed grain consumers. Due to the combined justice facilities, correctional institutions and community impact of increased grain feed prices under the current development employment programs. In 2004-05 members drought and static commodity prices, these industries are from over 20 different Aboriginal communities in NSW, facing declining profitability. Queensland and South Australia were involved in the In response, the Division developed programs such as Milk program. Business, a decision support aid and business analysis tool. Enrolments in Tocal College’s full-time residential certificate Sixty per cent of NSW dairy farmers have now been trained and diploma courses in 2005 were the highest in 13 years. to use this tool. We also released software that will allow pork There was record demand by employers for college graduates producers to analyse their profitability, taking into account with all last year’s students finding suitable positions or increasing feed costs. continuing their studies at university. Another business analysis tool, Honey Money, will help NSW beekeepers to assess their profitability in the face of low production during drought and competition from cheap imported honey products.

10 NSW Department of Primary Industries ANNUAL REPORT 2004–05 Fisheries The public consultation process for the Cape Byron Marine Park Draft Zoning Plan was also completed. The final zoning Aquaculture plan should be completed during 2005-06. Over $4 million has been allocated for the buy-back of commercial fishers affected NSW aquaculture received a boost in 2004-05 from divisional by the zoning plan. assistance and initiatives such as: • facilitating Ministerial approval for the extension of mussel Bioregional assessments farming in Twofold Bay. The results will be an increase in Bioregional assessments use scientific and ecological the aquaculture lease area from 15.5 to 49.5 hectares and criteria to ascertain conservation values and are the basis for improved local employment opportunities selecting candidate marine protected area sites. The program • assisting the oyster industry to commercialise a disease- of systematic ecological evaluation of the five NSW marine resistant and faster-growing Sydney Rock oyster through and coastal bioregions is now complete, with the remaining forming a private company for this purpose bioregional reports to be released during 2005-06. • achieving the approval of the Minister for Planning and the Minister for Primary Industries for the Hunter Fish stocking for recreational fishers and Central Coast Aquaculture Strategy in June 2005. Following a comprehensive environmental impact assessment This forms part of the statewide program of regional process by the Division, approval was gazetted in May 2005 aquaculture strategies under SEPP 62. to allow freshwater fish stocking in natural waterways by NSW The Division worked with the NSW Premier’s Department to DPI staff and the public. coordinate an interagency meeting in April 2005 to consider assistance for oyster farmers affected by the outbreak of QX Relationships with catchment management authorities disease in the Hawkesbury. We subsequently established a QX The Division took the lead for NSW DPI in establishing an taskforce to assist industry restructure, clean-up, biosecurity excellent relationship with all NSW catchment management and social welfare issues. authorities during their formative year. Among notable achievements were: Commercial fishing • development and publication of best management Implementation of the share management scheme for guidelines for landholders to improve soil health, ground commercial fishers progressed with the allocation of cover, water quality, erosion and weed control and grazing provisional shares in all the major commercial fisheries management – ocean trap and line, ocean haul, ocean trawl, estuary general • the piloting of NSW DPI’s LANDSCAN landscape and estuary prawn trawl. Shares have already been allocated management course throughout the Hawkesbury-Upper for the abalone and rock lobster fisheries. Nepean, Murrumbidgee and Southern Rivers catchment management authority areas. Habitat protection and rehabilitation In another initiative which targeted catchment management Fish will be able to move freely along 606 kilometres of authority staff as well as agribusiness and private consultants, estuarine creeks due to active management of 57 floodgates the Division developed and delivered training and reference by the Division in conjunction with the Clarence Valley, material to support effective salinity management. The Kempsey and Richmond River councils. As an additional multiplier effect of this training has resulted in key messages benefit, the floodgate projects will significantly reduce acid on salinity management being passed on to an estimated sulfate levels. 3000 farmers. In the NSW high country, the Division began public consultation on the draft native fish recovery strategy for the Water reform Snowy River that complements recovery works associated the commencement of the river’s environmental flows. Evaluation of projects funded under the NSW Government’s Water Reform Initiative demonstrated that better irrigation Marine parks management can substantially improve both farm business profitability and the environment. On the North Coast, NSW DPI is responsible for managing marine parks together demonstrations in commercial orchards showed that with the NSW Department of Environment and Conservation improved irrigation scheduling based on soil water monitoring and the Premier’s Department. could improve financial returns from stone fruit by 38 per cent The Final Zoning Plan for Lord Howe Island Marine Park while reducing water use by 28 per cent. was implemented on 1 December 2004 as part of the NSW The results of another water reform project are detailed in the Government’s commitment to developing a comprehensive case study on page 13. system of marine parks in NSW. A detailed user’s guide on the zoning plan was also released.

NSW Department of Primary Industries ANNUAL REPORT 2004–05 11 Export inroads We also contributed to the development of national standards and codes of practice. These were the national To build exports to Japan, the Division facilitated the supply standards for mulesing sheep which will form an appendix to of soybeans for tofu production and progressed breeding the Australian Model Code of Practice for the Welfare of Animals: of suitable varieties of natto-type soybeans for a major The Sheep and the review of the Australian Model Code of Japanese buyer. Tofu beans sales are valued at over $500 000 Practice for the Welfare of Animals: Pigs. The review is examining per annum. The Division also organised a wine promotion in various aspects of pig housing, including the controversial Tokyo and Kobe for small wineries from Orange and Mudgee, issue of sow stalls. one of which has since made a number of sales visits. Two publications were released, the revised Standards for The Division assisted in the export of $1 million worth of Exhibiting Carnivores in NSW which addresses additional NSW meat for retail sale in Korea and secured new exports display and enclosure methods and covers a wider range of Sydney Rock oysters. Markets in Singapore and the United of carnivore species, and the evidence-based Best Practice Arab Emirates were investigated. Guidelines for the Housing of Rats in Research and Teaching Staff addressed 51 incoming Chinese delegations on a fee- Institutions in NSW. The guidelines will contribute to optimum for-service basis and arranged two week-long training courses use of rats as research subjects. in cherry and grape production. They also organised a visit In other major activities for the year, the Division played a from the Chinese Quarantine Service to inspect monitoring crucial role in framing the Prevention of Cruelty to Animals systems in order to alter the bluetongue protocol. The new Amendment Act 2004 which gives organisations such as the protocol will open up export of NSW cattle to China. RSPCA, NSW Police and the Animal Welfare League added powers to protect animals from cruelty. The legislation was Animal welfare developed after extended consultation with animal welfare Divisional representatives participated in the Police Minister’s groups and farming interests. Animal Cruelty Task Force along with officers from the Police, Regulations for the Exhibited Animals Protection Act 1986 and the RSPCA and the Animal Welfare League, the agencies the Animal Research Act 1985 expire in September 2005. In which collectively enforce the Prevention of Cruelty to Animals the interest of continuing protection for animals, the Division Act 1979. The task force is investigating better intelligence drafted improved regulations and published a regulatory sharing about offences involving deliberate cruelty to animals. impact statement in June seeking public comment on the proposals.

D ivisional performance Units 2002-03 2003-04 2004-05 Outcomes: Crop area sown using reduced tillage technology % 60 50 70 Pro d u c e r s t r a i n e d i n Pro gr a ze u s i n g i m p rove d gr a z i n g m a n a g e m e n t % 93 95 95 Satisfactory test results from pesticide surve ys of NSW produce % 99.8 99.9 99.9 Aq u a t i c s p e c i e s p ro te cte d no . 25 25 27 Aquatic communities protected no . 37 38 39 Aq u a c u l t u re p ro d u ct i o n $m 50.7 53.4 53.0

Outputs: Fa rm e r s a t te n d i n g p ro d u ct i o n o r f a rm i n g s y s te m s wo rk s h o p s no . 14 034 11 000 11 000 Animal Welfare Licences issued (research and exhibited animals) no . 420 441 440 Value of PRIMEX assisted sales and negotiations $m 3.0 4.5 5.0 L a m b t r a d e d ‘ove r t h e h o o k s’ % 20 25 25 N a t i ve fi s h s to c ke d mill 2.3 2.6 2.4 Habitat restoration sites no . 72 131 203 Land-based fish farms no . 50 238 219 Areas of submerged lands leased ha 4 432 4 338 3 982 Fishery management strategies completed no . 3 3 4

12 NSW Department of Primary Industries ANNUAL REPORT 2004–05 CASE STUDY

Appropriate access to and wise management of natur al resources

IRRIGATION INITIATIVE PROVES LESS IS MORE

Use of advanced T he r esults ar e in fr om a NSW DPI Wat erW ise pr og ram in the lo w er Murra y Darling r eg ion and make impr essiv e r eading. Wat er use efficiency has impr o v ed , as has technologies and fruit quality, and much less salt is ent ering the Murra y Riv er due t o the lo w er management systems wat ertables . has improved the T he pr og ram began six y ears ago when, under the NSW Go v ernment’s Stat e Wat er Reform Initiativ e , NSW DPI irrigation officers start ed t o pr omot e mor e efficient quantity and quality of syst ems for applying wat er and bett er scheduling of irrigation. fruit T he officers taught farmers in the r eg ion, which is famous for its oranges and g rapes , about the advantages of applying wat er t o cr ops thr ough micr o syst ems

����� ����� such as drip and mini sprinklers . A doption of micr o syst ems tripled during the ��������

����� pr og ram’s six y ears . C urr ently mor e than thr ee-quart ers of farmers use such ������������������� ����� ������������������� syst ems . A doption of high t echnology scheduling, based on impr o v ed monit oring ��� ����� �������� and kno wledge of plant wat er r equir ements , follo w ed a similar patt ern. A thir d of ��� ��� ��� ��� farmers in some ar eas no w follo w this best management practice .

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��� sig nificantly r educe salt accessions t o the Murra y Riv er. ��� Use of advanced t echnolog ies and management syst ems has impr o v ed the ��� quantity and quality of fruit pr oduced . But the riv er has also benefit ed fr om ��� the pr og ram’s ancillary en vir onmental out comes and the local community has ��� benefit ed fr om rising horticultur e pr ofits . ��� NSW DPI was instrumental in chang ing irrigation t echniques thr ough partnership ���

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������ �������������������������������������� with industry on deliv ery of the Wat erW ise Intr oduction t o Irrigation Management ���� ��������������������������������������� ���������������������������� C ourse and follo w-up ext ension activities . Futur e Wat erW ise and mor e advanced irrigation courses will be deliv er ed under the new $5.8 million PROfarm ag ricultural training pr og ram. (NSW DPI pr o vides these courses .) NSW DPI will continue t o ensur e that irrigation farmers ha v e appr opriat e access t o wat er and implement initiativ es t o impr o v e irrigation syst ems (as opposed t o on- farm efficiency) thr ough r epr esentation on wat er policy committ ees .

NSW Department of Primary Industries ANNUAL REPORT 2004–05 13 CASE STUDY

Appropriate access to and wise management of natur al resources

NSW DPI BACKS INDIGENOUS OYSTER FARMING

W ith help fr om NSW DPI, a local Aborig inal land council on the South C oast has ent er ed NSW DPI is c ommitt ed the aquacultur e business . T he Indigenous Fisheries Strat egy pr o vided the framew ork. t o opening up ec onomic T he v entur e began with NSW DPI facilitating the Bodalla Local Aborig inal Land C ouncil’s pur chase of o yst er leases at Nar ooma. Understanding that the council w ould need opportunities for additional start -up support, NSW DPI also made in-kind contributions including: Aboriginal people • allocating hat chery and wild o yst er spat • sour cing farming equipment such as punts , an outboar d mot or and a g rading machine and tra ys • setting up a local support netw ork for the land council . NSW DPI then established partnerships with sev eral other go v ernment agencies t o put t ogether a compr ehensiv e business package . T he NSW Department of Stat e and Reg ional Dev elopment came on boar d with funds for business planning while the NSW Department of E ducation and Training funded emplo yment of six Aborig inal trainees on the o yst er leases . T he trainees spend four da ys a w eek w orking the o yst er leases and one at a local TAFE college wher e they r eceiv e formal training. For the Bodalla Local Aborig inal Land C ouncil , the futur e is looking v ery bright indeed . T he land council is ev en in v estigating the pot ential for business expansion aft er harv esting the first bat ch of saleable o yst ers in 2006. T he aquacultur e v entur e , which has been a notable achiev ement for NSW DPI, affirms NSW Go v ernment commitment t o opening up economic opportunities for Aborig inal people .

14 NSW Department of Primary Industries ANNUAL REPORT 2004–05 MINERAL RESOURCES DIVISION

NSW Department of Primary Industries ANNUAL REPORT 2004–05 15 MINERAL RESOURCES DIVISION Mining development and investment Record production and royalties Nature and scope of activities The total value of NSW mineral production in 2004-05 is estimated at a record $9.2 billion, an increase of around Mineral and processed mineral exports were worth 37 per cent over the previous year. Coal production, with an approximately $8.6 billion to NSW in 2004-05. estimated value of about $7 billion in 2004-05, accounted for Within this context, the Mineral Resources Division is a major over 76 per cent of the total production value. Metallic and contributor to the prosperity of NSW through its stewardship industrial mineral production was also very significant, having of mineral resources. The Division also brings in royalty an estimated value of $2.2 billion in the reporting year. earnings, which in 2004-05 totalled $396 million. NSW royalty figures for 2004-05 indicate record collections. The majority of divisional staff work in purpose-built Net royalty collected in the financial year was around facilities at Maitland and the newly established Mine Safety $396 million, an increase of 58 per cent over the previous Technology Centre close to Maitland, with the remainder year. At $354 million, coal royalty collection was up by 62 based in nine regional offices. per cent over 2003-04, largely due to the NSW Government’s introduction of an ad valorem coal royalty regime on 1 July The Division’s five branches are: 2004. Non-coal royalties increased by around 31 per cent over • the Coal and Petroleum Resources Branch is responsible the previous year to $42 million. for providing an assessment of the State’s coal and petroleum resources and providing advice on resource Mineral royalties ($ million) development, landuse and infrastructure planning ��� • the Geological Survey of NSW undertakes geological ��� mapping and resource assessment, audits private sector ��� mineral exploration performance, promotes exploration ��� investment, and coordinates and assesses land use ��� planning issues affecting exploration and mining ��� ��� • the Mine Safety Operations Branch works to ensure that �� the mining and exploration industry satisfies community � and government expectations regarding safety, health, ������� ������� ������� ������� ������� �������

mine subsidence and resource extraction ������� • Minerals Development is responsible for administering New development mining and exploration titles, collecting mineral, coal and petroleum royalties and facilitating new mine The sharp increase in coal and mineral prices from 2004 developments in NSW on has encouraged the development of a number of coal, mineral and petroleum mining projects. New capital • the Environmental Sustainability Branch guides expenditure in the NSW minerals industry for 2004-05 has the exploration and mining industry to improved again exceeded $1 billion. environmental sustainable performance and works closely with other government agencies to regulate New major projects/operations to which the NSW Government industry activities. granted consent during the year were: • development of a $114 million extension at depth to the Major outcomes achieved Ridgeway gold/copper mine • the first NSW commercial conventional gas production Successful relocation to Maitland lease at the Wilga Park power plant west of Narrabri. In November 2004, the Mineral Resources Division relocated Operated by Narrabri Power Limited, a 100 per cent to purpose-built facilities at Maitland in the Hunter region. owned subsidiary of Eastern Star Gas, the plant utilises The move from Sydney and the establishment of the Mine gas reciprocal engines to generate power for on-sale to Safety Technology Centre at Thornton brought significant Country Energy challenges and many changes in staffing structure and numbers. • the Werris Creek Coal Project and the Gingko Mineral Sands Project, which have commenced construction. A core group of experienced staff ensured that key services continued to be provided to our stakeholders. A recruitment In May 2005, the Division received development applications program to complement the core group is nearly complete. for the Excel Mining Wilpinjong coal mine project near Mudgee and the East Boggabri coal mine project in the Gunnedah Basin.

16 NSW Department of Primary Industries ANNUAL REPORT 2004–05 Titles Under the Titles Program, the Division processed 2487 title Exploration NSW applications and dealings in addition to over 5000 mineral Exploration NSW is a $30 million, seven-year government claim applications for opal mining at Lightning Ridge. initiative to attract global investment in mineral and Mining leases were granted for the Tasman Coal Project petroleum exploration to the State. It aims for the top and major extensions to Bulga, Hunter Valley Operations, – that is to provide world-class geoscience to industry Muswellbrook and Mt Owen coal mines. and data access via the latest online systems. Procedures were streamlined and, in an exercise conducted Over the year Exploration NSW: in association with the Maitland relocation, over 80 processes • commenced the largest, high-resolution airborne relating to administration of the mining and petroleum Acts geophysical survey ever conducted in NSW over were documented in detail. areas of mineral and petroleum potential in the north-west and south-west Exploration • identified unexplored geological provinces under Data for exploration investment cover in the far west High quality geoscience information is essential both to • conducted seismic surveys in the Darling Basin that attraction of exploration investment and effective land use enhanced prospecting in the basin for oil and gas decision-making by all levels of government. Data from the • focused geological mapping in the far west on areas Geological Survey of NSW was supplemented during the year of exploration interest in the Koonenberry, Cobar and through the NSW Government’s Exploration NSW initiative, New England regions a $30 million, seven-year program to accelerate geoscience data acquisition to increase private exploration investment for • developed improved internet-based data delivery minerals and petroleum (particularly gas). systems for exploration company reports, titles information and geoscience data. Exploration NSW aims to boost exploration investment in the State’s established mineral provinces as well as in under- explored regions. In 2004-05 work included major geophysical Mineral and petroleum exploration expenditure in NSW ($ million) surveys in the far west of the State as well as regional geoscience mapping and data compilation. ��� The largest airborne magnetic and radiometric survey ever ��� conducted in NSW commenced in March 2005 and will �� conclude in October 2005. The survey will cover 90 000 �� square kilometres and record 280 000 line kilometres of data in an endeavour to improve understanding of exploration �� opportunities for minerals and petroleum in the far north west �� and far south west. � In 2004-05 Exploration NSW also highlighted the opportunities ������� ������� ������� ������� ������� for petroleum exploration via development of the Darling ��������������������� ������������������� Basin Petroleum Data Package that includes 134 kilometres of seismic data acquired in the Wilcannia–Ivanhoe region. Another positive development for the NSW mining industry was the arrival of overseas majors and the entry of Western Exploration activity Australian junior explorers. Strong commodity prices resulted in a substantial lift in the A number of very significant exploration successes were value of minerals exploration activity in NSW to $70 million recorded over the year, particularly at Broken Hill and Cobar. (preliminary), a 40 per cent increase over 2003-04. The rise in Other areas of interest were the: granted mineral exploration licences from 520 in June 2004 • Lachlan Fold Belt where exploration is beginning to lead to 599 in June 2005 is another indicator of increased activity. to mine development Similarly, there was a record increase in petroleum exploration • New England Fold Belt, especially the Hillgrove and to $31 million (preliminary), largely as a consequence of Tooloom areas investment in coal seam methane projects in the Gunnedah and Sydney basins. This represents a 45 per cent increase over • Murray Basin where heavy mineral sands deposits with a 2003-04. value of over $10 billion have been discovered.

NSW Department of Primary Industries ANNUAL REPORT 2004–05 17 Safety operations Environmental management Wran Review Stakeholder engagement One of the most important safety initiatives of the reporting To ensure a whole-of-government approach to issues period, the Wran Review of Mine Safety identified the need resolution and better align agency operations, the Division for better cooperation on safety by industry, unions and held regular meetings with the NSW Department of government. Further details on the review appear in this Environment and Conservation and the NSW Department report in the section on the Biosecurity, Mine Safety and of Infrastructure, Planning and Natural Resources. The Compliance Division. meetings, which also involved local government, kept In 2005-06 the Minister for Mineral Resources will finalise participants fully informed of mining proposals and the discussions on how best to implement the review’s progress of mining operations. On the community front, wide recommendations. consultation promoted the flow of information and improved understanding of environmental management of the mining Investigations and education industry. Inspectors and mine safety officers conducted over 1500 Environmental rehabilitation site assessments and over 500 investigations of safety- related incidents. In addition, they gave technical advice to With the full cooperation of the two miners’ associations and major investigations. More than 400 notices were issued, individual miners, the Division continued the rehabilitation including 68 that directed mining operations to stop the use campaign in the Lightning Ridge opal mining region. From of equipment or cease work until safety improvements were the start of the campaign in 2002 to date, 1239 claims have made. been inspected and reports sent to claimholders. Planning is now under way to create extra mullock dumpsites to alleviate Safety on the opal fields continued to be excellent – 2004-05 identified mullock handling problems. being the eighth successive year without a fatality. More than 930 opal miners attended safety awareness courses and more Projects for rehabilitation works at around 50 derelict mine- than 800 completed the Mine Operators Workshop. sites across the State received funding during 2004-05. There was major rehabilitation work on nine sites and minor Technical services rehabilitation works on a further 22 sites. Additionally, the Division completed environmental assessments, including bat The Division completed a diesel particulate matter (DPM) surveys, heritage inspections and soil and water investigations, research project funded by the Coal Services Health and at a number of sites. Safety Trust which developed a practical method for measuring DPM emissions from mining equipment. A report Subsidence management plans was prepared and submitted to the Trust. There are plans for further testing in 2005-06 to establish an adequate amount The Division received 21 subsidence management plans of data for analysis that will in turn inform development of (SMPs), of which 16 were assessed and approved. The Beltana strategies to control miners’ exposure to DPM. Colliery second workings SMP application was of a high standard and will serve as the industry benchmark in future. Safety performance An interagency committee will review the subsidence Mine safety performance across the State’s mining industry management plan requirements, specifically those relating showed continued improvement this year, as shown in the to monitoring and risk assessment, in consultation with an table below, in particular a significant reduction in serious industry working group. Broad agreement has already been bodily injuries in the coal sector. reached on the required changes.

Mine safety statistics Operational and regulatory compliance All mines under mining leases must prepare and comply with 2003-04 2004-05 a mine operations plan. The plan sets out how the leaseholder Fatalities 3 1 will meet the conditions imposed on operation, minimise the Serious bodily injuries (coal) 39 31 environmental impacts and rehabilitate any disturbance. The Serious bodily injuries (non-coal) 12 9 plan also outlines the proposed mining operations, land and Notifiable incidents (coal and non-coal)) 273 251 environmental management strategies and details progressive Dangerous occurrences 27 31 rehabilitation works. During the year, the Division undertook 41 environment

assessments and advised external authorities regarding 28 development assessments under the Environmental Planning and Assessment Act 1979.

18 NSW Department of Primary Industries ANNUAL REPORT 2004–05 Legislative change The NSW Government has carried out a review of the environmental provisions of the Mining Act 1992 and identified areas where legislative amendment will strengthen administration of mining in NSW. The next stage of the review process is release of a position paper for public comment. The paper, which should be available later in 2005, will set out the Government’s preferred approach to amendment of the Act.

Divisional performance Units 2002-03 2003-04 2004-05 Outcomes: NSW share of private mineral exploration in Australia % 8.0 6.4 7.2 Value of NSW mineral production $m 6 775 6 700 9 200 Royalties collected $m 233 250 396 Lost time injuries no. 566 443 565 Fatal injuries no. 1 3 1 Mines operating to agreed Mining Operation Plans % 90 90 95 Environmental security deposits held $m 375.4 474 473

Outputs: Coverage of State by new standard series geoscience maps and data km2 51 000 45 000 30 000 Titles and dealings processed within published time frames % 90 90 90 Royalty debt level - % of total royalties % 0.42 0.29 0.20 Safety regulation Investigations (safety operations) no. n.a. n.a. 494 Enforcement actions no. n.a. n.a. 394 Environmental regulation Audits, assessments and reviews no. 633 784 798 Investigations and enforcements no. 40 30 45 Rehabilitation of derelict mine sites no. 37 44 50

NSW Department of Primary Industries ANNUAL REPORT 2004–05 19 CASE STUDY

Stronger voice for primary industries in government decision-making

FINDING THE RIGHT BALANCE IN THE PILLIGA

Long-t erm economic and conservation int erests can be prot ect ed simultaneously NSW DPI plays a major – that’s the message coming from whole-of-go vernment negotiations on future part in achieving management of the Pilliga region in which NSW DPI pla yed a major part. Locat ed near Narrabri, the Pilliga region contains one of the largest tracts of continuous sim ultaneous natural vegetation in the Stat e, with whit e cypress and narro w leafed ironbark the major prot ection of economic species. As such it has high conservation values. T he region is rich in resources, namely and conservation timber and gas, the latt er identified recently through privat e exploration. T here are also pot ential reserves of coal, gold and gemst ones. int erests NSW DPI’s role in finding the right balance for the Pilliga initially involved undertaking two studies. One aimed t o establish the mineral and petroleum (gas) pot ential of the area using t echniques such as new geological and mineral deposit mapping, airborne geophysics and investigative drilling. T he other study assessed the value of timber resources in the stat e forests and cro wn land sections of the Pilliga that are managed b y Forests NSW. Subsequent negotiations on achieving an economic/conservation balance brought NSW DPI t ogether in discussions with a wide range of community groups and go vernment agencies, including the NSW Department of Environment and C onservation. T he final out come sa w the creation of a series of conservation reserves in areas with lo w mineral resource pot ential and preservation of access t o the remainder of the Pilliga for mineral exploration and timber production.

20 NSW Department of Primary Industries ANNUAL REPORT 2004–05 FORESTS NSW

NSW Department of Primary Industries ANNUAL REPORT 2004–05 21 FORESTS NSW Better financial controls At the same time, Forests NSW introduced new financial controls across the organisation including a more formal Nature and scope of activities review and approval process for major operating and all Forests NSW is a public trading enterprise operating within capital expenditure. The process includes formal reviews of all: NSW DPI. • capital expenditure proposals and tenders (regardless of Our role is to sustainably manage more than 2 million value) hectares of native state forests and plantations to achieve • operating expenditure with a value greater than $100 000 a range of economic, environmental and social objectives. • consultants, contractors, extensions and new These objectives include ensuring the supply of timber to appointments processing industries, protecting the biodiversity of state forests and providing community amenities – all within the • procurement tenders and contracts, timber and contract framework of a profitable business. harvesting and haulage proposals Forests NSW is also developing new business services related • future financial budgets and plans. to our primary role as a forest manager, such as private A full business case targeting resources and activities for any forestry and plantation management services, carbon sinks of the above is now required prior to any decision regarding and carbon trading, salinity mitigation, eco-tourism, land implementation. All proposals must also take account of the repair and mine site rehabilitation. public trading enterprise status of Forests NSW and national There are five branches: competition policy requirements. • Native Forests Operations The implementation of the new financial controls is an important step towards achieving sustainable business • Planted Forests Operations improvement and financial targets. • Land Management and Technical Services • Commercial Services Profits for 2004-05 • Finance and Operational Business Services. The downturn in the housing market resulted in reduced timber sales in the latter part of the financial year. However, Major outcomes achieved Forests NSW was still able to deliver a $32.5 million dividend for distribution to the NSW Government, meeting the set Business improvement target. Increasing returns to the NSW Government This has been achieved through putting identified performance improvement strategies in place as well as the Organisational focus over the past year was on delivery of sale of the former Forests NSW head office building. ongoing improvement in operational performance. The target, which the NSW Government set in the mini budget of March New business development 2004, was to produce increased dividend payments of Forests NSW develops investment products in partnership $20 million per annum additional to budgeted dividends. with managed investment schemes and establishes new To this end, Forests NSW embarked on a program to develop plantations for third party investors. As well as meeting new revenue streams and achieve sustainable operating and investment needs, such products expand the State’s capital expenditure savings. Improvements to systems and plantation estate and help meet timber supply needs. purchasing arrangements were also part of the package. A managed investment scheme involving Australian Forest Some of the means identified for improving operational Management Pty Ltd, a subsidiary of Rothschilds, and Forests performance were: NSW operated in 2004-05 and resulted in the establishment of • introducing new forest products 850 hectares of new plantations. Forests NSW also managed plantations on a fee-for-service basis for international • revising pricing and charges for some services companies such as Tokyo Electric Power Company and Italian • reduction of some activities electronics company ST Microelectronics. • reducing staff numbers through voluntary redundancy Forests NSW intends to develop more investment products as • selling non-strategic sites and co-locating to fewer they provide new sources of revenue and an improved return operational sites on capital. They also allow expansion of plantations without the usual upfront establishment costs. • re-investing asset sale proceeds in technology and equipment to further enhance profitability. Additionally, where Forests NSW is contracted to sell mature timber from investment plantations, it will be able to count the volumes sold toward fulfilling supply commitments to industry.

22 NSW Department of Primary Industries ANNUAL REPORT 2004–05 Finalisation of wood supply agreements Delivered sales Following the regional forest agreements and subsequent Sales of logs sorted at the harvest site and delivered to the reservation of further forests for conservation, the NSW mill door are known as ‘delivered sales’. Government offered 20-year wood supply agreements to The rollout of a merchandising approach to such sales north and south coast saw millers. The agreements, which are across all Forests NSW operations is nearing completion. close to finalisation, will provide unprecedented security of The approach, under which Forests NSW directly engages supply and underpin industry employment and investment in harvest and haulage contractors, enables better differentiation the two regional areas. between logs of different quality. Whereas previously there On the North Coast, new contracts replaced previous supply had been wastage of some log types, the new approach agreements for high quality sawlogs. Along with these ensures that each log can be sold for its highest value changes, Forests NSW introduced two new types of wood application. supply agreements to maintain supply of specialty high Expansion of delivered sales in the Forests NSW southern quality logs (small logs, poles, piles and girders) and lower region commenced during the year and, when finalised, will quality sawlogs (thinnings from plantations and native forests). complete the log merchandising rollout to all coastal native The south coast agreements provide long-term security of forest regions. With softwood harvesting approaching 100 per supply for a range of sawlog quality grades and maintain the cent delivered sales, the combined revenue from hardwood balance created by the Southern Regional Forest Agreement and softwood delivered sales reached $150 million in 2004-05. between environmental conservation and continuing industry viability. Growth of plantation-related industries The softwood industry is a major driver of economic growth Trading results in many NSW regional areas. And, as indicated by recent investments in timber processing, the industry will underpin Timber sales future regional development. Investments include: Nearly 3 million cubic metres of softwood sawlogs and • Norske Skog’s $130 million upgrade to the Albury paper pulpwood were produced during 2004-05, generating mill $86.1 million in softwood timber sales. This result was down in volume by 50 000 cubic metres but an increase in sales • Hyne Timber’s $110 million capacity upgrade at the value of $100 000 when compared to the previous year. Tumbarumba sawmill Production of hardwood and cypress sawlogs and pulpwood • ATP’s $12 million ‘green-field’ sawmill at Bathurst amounted to over 1.4 million cubic metres and generated • McVicar’s $10 million ‘green-field’ sawmill at Quirindi. $41.9 million in sales. This result was down in both volume, by Several companies also announced planned investments: nearly 100 000 cubic metres, and value by nearly $2.7 million Visy, an investment of $360 million to speed up production when compared to the previous year. at its Tumut mill and install a second paper machine, and Softwood and hardwood sales were strong early in the Weyerhaeuser, a further investment of $10 million at its Tumut financial year but tapered off towards the end of the year due sawmill. to the slowdown in the housing market. With the official opening of the upgraded Hyne Timber mill by Sales of sawn softwood products are closely linked to the the Minister in April 2005, Forests NSW pine plantations now cyclical nature of the housing construction industry. To enable support the largest sawmill in the southern hemisphere. The better management of market trends, Forests NSW reviewed mill has the capacity to process sufficient pine timber to build the system through which timber is allocated for supply more than 20 000 new homes annually. commitments. The resulting strategies allow customers to A recent study commissioned by the Riverina Development boost processing capacity to meet market demand, thus Board’s Softwoods Working Group demonstrated the promoting full utilisation of softwood resources. importance of the industry to the south-west slopes of NSW. The study predicts that, as the result of recent expansion in Carbon trading Tumut, Tumbarumba and Albury, the timber industry will In 2004-05 Forests NSW achieved a world record in carbon generate $2 billion for the regional economy and create jobs trading. It achieved this distinction through becoming the first for more than 3500 people within the next five years. agency to create and sell certificates of carbon sequestration Together with expansions in Bathurst, Oberon, Bombala from forests under an approved trading scheme. Electricity and Quirindi, the softwoods industry will continue to play generators and other companies buy the NSW greenhouse an important role in the future economic development of abatement certificates that certify the sequestration of regional NSW. measurable quantities of carbon and offset the certificates against carbon emissions from their operations. Further details appear in the case study on page 26 of this report.

NSW Department of Primary Industries ANNUAL REPORT 2004–05 23 Forest management Conditions became dangerous in southern NSW in January with major fires in South Australia and Victoria, but there were Government decision supports sustainable industry no major NSW outbreaks. development in western NSW The National Climate Centre’s seasonal outlook report to In May 2005, the NSW Government announced its decision Forests NSW and Bureau of Meteorology rainfall predictions on the future management of Brigalow Belt South and indicate the likelihood of an early and potentially long Nandewar bioregions in western NSW. The announcement and severe fire season in 2005-06. Forests NSW is making came after five years of analysis and extensive stakeholder and preparations accordingly. It is also working to extend the Fit to community consultation. Fight voluntary fire fighting training program across NSW DPI. The decision, which will establish the basis for an ecologically Forests NSW took advantage of the dry autumn to conduct sustainable timber industry, is to make 264 000 hectares in significant bushfire hazard reduction in strategic zones. the bioregions available for timber harvesting and set aside 348 000 hectares for new conservation reserves. Under the New recreation policy and strategy decision the NSW Government will: In March 2005, the Minister launched the new recreation • allocate $80 million over the next five years for job policy and strategic framework Living, working, playing … creation, timber industry development and conservation forests 2005-2009. Forests NSW consulted widely in developing management the framework as a response to growing demand for • make available up to 57 000 cubic metres of cypress recreational, sporting, tourism and training use of state forests. pine per year to the cypress industry, with only minor Part of the package is a strategy to align forest management reductions to the remaining mills. The Government will for recreational and other purposes with the primary also underwrite 20 year wood supply agreements objectives of providing a sustainable timber supply to NSW • provide employment for up to 50 people in cypress and protecting environmental values. thinning programs that will be extended to private and The strategy aims to: Crown lease lands to boost timber supplies for industry. • develop and promote partnerships with recreation, The decision also guarantees security for the local farming, tourism and other groups apiary, coal and gas industries. • ensure safe, long-term access to both native forests and planted forests for group activities and organised events New conservation areas on the south coast • apply more consistent fees and administration for events In December 2004, the Minister for Primary Industries and organised groups announced the creation of 7135 hectares of new national parks and state conservation areas in the south-east of NSW. • improve public access to information on state forest The announcement increases the total forested area of recreation. national park in the region to more than 812 000 hectares. Access for individuals, families and small groups is free to all Over 366 000 hectares of native state forest still remain state forests across NSW but fees apply for organised events. available for timber harvesting which will support sustainable In 2004-05 there were over 275 organised events held in local timber production. state forests, each providing an economic boost to regional The Minister also announced the lifting of a moratorium communities and helping to encourage tourism. on harvesting over a large area of state forest in the Eden and southern regional forest agreement areas that had Preparing for forest certification affected industry access since February 2003. Lifting of the Forests NSW continued to prepare for forest certification. moratoriums will lead to a more secure investment climate for Certification – which entails independent assessment of an value-adding by industry. Forests NSW, the NSW Department organisation’s forest management against specified criteria of Infrastructure, Planning and Natural Resources and the NSW – gives consumers assurance that their timber comes from Department of Environment and Conservation negotiated sustainably managed forests. changes to regulations that will maintain productivity without Preparations included the release for public comment of draft jeopardising environmental protection. ecologically sustainable forest management plans for the next Fire management five years. The plans set out broad strategies, performance indicators and measurable outcomes for forest management Due to the severe drought, Forests NSW initially prepared for in key areas. These include: an early and severe bushfire season, particularly in southern • natural heritage NSW. Fortunately good rain through spring and into early summer reduced fire risk and there were average levels of fire • Aboriginal cultural heritage activity in the north and centre of the State in both periods. • forest health

24 NSW Department of Primary Industries ANNUAL REPORT 2004–05 • sustainable timber supply Forests NSW performance • economic and social development. The plans build on important ecological data collected ����������������������� and analysed in comprehensive regional assessments and, �� when completed, will form a vital part of the framework for �� �� achieving certification. �� Forests NSW is currently assessing the two internationally �� renowned certification schemes to determine which scheme �� would best meet customer demands. � � The aim is to achieve certification by the end of 2006. � � Safety ������������������������������������������� � ������� ������� ������� ������� ������� Comprehensive new safety management system Forests NSW is a self-insurer for workers compensation. As such it is required to have safety systems that are audited ���������������������������������������� �� by WorkCover. �� Forests NSW completed an exhaustive review of safety �� systems, documentation and communication during the year. The review resulted in development of a comprehensive new �� safety management system launched in May 2005 with the �� slogan ‘Think Safe, Act Safe, Stay Safe’. �� Under the new system, specialist safety and training �� coordinators across the State will cover all Forests NSW � � regions and all operations. The safety team will report directly ������� ������� ������� ������� ������� to the chief executive – a fundamental change in safety ���������������������������������������������������������������������������������������������������������������������� management. All staff have a role in maintaining the highest possible level of safety across the forest industry. To ensure their commitment ����������������������� ����� to the new safety arrangements, Forests NSW held workshops in all branches. ����� Another important achievement in 2004-05 was the clocking ����� up of a record three years without time lost to injuries in the Monaro Planted Forest Region. ����� ��������������� ����� Road safety award ��� Forests NSW is a key member of the Forest Industry Council for � the south-west slopes. The council, together with the Tumut, ������� ������� ������� ������� ������� ������� Tumbarumba and Gundagai shire councils, established the ���������������������������������������������������������������������������������������������������������������������� joint project Sharing the Road with Trucks. In May, the project ������������������������ ������������������������������������������� won the 2005 Local Government Excellence in Road Safety ����������������������������������������������� ������������������������������������������� Award conferred by the Institute of Public Works Engineering Australia. The project included a media campaign, information packs ���������������������������������������� and the Safety First newsletter for log haulage companies, ���� and a reporting line for road users. Another feature was the ���� installation of special road markers at one-kilometre intervals ���� along high-use forestry roads in the region. The markers, ���� which are the innovation of Forests NSW, enable drivers to ���� report such information as the location of their vehicle to ������������� ���� other road users over the UHF radio network. Forests NSW is ���� funding marker installation. ���� ��� � ������� ������� ������� ������� �������

NSW Department of Primary Industries ANNUAL REPORT 2004–05 25 CASE STUDY

Strong economic performance of primary industries

CARBON TRADING SCHEME A FIRST FOR FOREST S NSW

In 2002 the NSW Go v ernment announced plans for a mandat ory r eduction Research underpinning carbon in g r eenhouse gas emissions b y the electricity sect or underpinned b y trading trading in abat ement certificat es . For ests NSW was quick t o spot the A n a p p l i e d re s e a rc h p ro gr a m , u n d e rt a ke n commer cial pot ential . And , ha ving put y ears of w ork int o its carbon by the Science and Research Division, has accounting syst em, For ests NSW was ideally placed t o gain accr editation as provided Forests NSW with species-specific an abat ement certificat e pr o vider under the trading scheme . biomass and carbon relationships for use in In line with the Ky ot o Pr ot ocol , the NSW trading scheme r ecog nises the carbon accounting system. In addition, t h e Ca rb o n i n Fo re s t s re s e a rc h p ro j e ct r efor estation as an elig ible g r eenhouse gas abat ement activity – for ests f u n d e d by t h e Co o p e r a t i ve Re s e a rc h Ce n t re r educing the lev els of carbon dio xide in the atmospher e . T he scheme w orks (C RC) fo r G re e n h o u s e Ac c o u n t i n g a i m s to b y allo wing electricity generat ors t o off set carbon emissions fr om their de velop a low cost method to estimate operations b y pur chasing abat ement certificat es that r eflect the w orth of c a rb o n s e q u e s te re d by d i ffe re n t ty p e s carbon sequest er ed in new for ests . In effect, the certificat es pr o vide a new of forest plantings – thus minimising the form of curr ency, one that r ealises both the financial and en vir onmental trading transaction costs and optimising value of our for ests . re t u rn s to fo re s t growe r s. For ests NSW has alr eady r eg ist er ed 166 005 certificat es which r epr esent the Cu rre n t re t u rn s f ro m c a rb o n t r a d i n g u n d e r carbon sequest er ed during 2004 fr om appr o ximat ely 10 000 hectar es of the NSW abatement scheme are limited plant ed har dw ood for ests . Ener gyA ustralia was the first buy er, pur chasing by lack of recognition of continued carbon o v er $1 million of certificat es . T he sale confirms that ther e is a market for s to r a g e, a fte r h a rve s t , i n wo o d p ro d u ct s. Th e Ca rb o n i n Wo o d Pro d u ct s re s e a rc h p ro j e ct , for est -based carbon cr edits and should g iv e companies added incentiv e t o also funded through the CRC, has howe ver partner with For ests NSW in new plantation in v estments . demonstrated that wood products in landfill A sig nificant benefit in trading abat ement certificat es is the substantial constitute a long-term store of carbon. NSW income generat ed fr om plant ed for ests early in their life , w ell befor e income DPI researchers have proposed a method is r eceiv ed fr om harv esting. for estimating long-term carbon storage i n wo o d p ro d u ct s a fte r h a rve s t , d u ri n g For ests NSW’s experience as an abat ement certificat e pr o vider, coupled with processing and manufacture, during service our ongoing r esear ch, will put the agency in a str ong position when a stat e- life, and at disposal. based national trading scheme is ev entually established . For ests NSW could also become a pla y er in int ernational carbon trading. In the meantime , For ests NSW continues t o incr ease r ev enues and allo w the flexible implementation of the Go v ernment’s g r eenhouse gas r eduction plans .

26 NSW Department of Primary Industries ANNUAL REPORT 2004–05 SCIENCE AND RESEARCH DIVISION

NSW Department of Primary Industries ANNUAL REPORT 2004–05 27 SCIENCE AND RESEARCH Major outcomes achieved DIVISION Research planning and advice Ensuring the future of research Nature and scope of activities In July 2004, the NSW Minister for Primary Industries announced a $25 million reinvestment plan called Towards NSW DPI, through the Division, is the largest government 2020. The plan aims to attract and retain the scientists at key provider of science and research services in NSW. A total of regional locations to support profitable agricultural, fisheries, 900 professional and technical staff undertake science-based forestry and mining industries. Implementation is however research from a network of 23 centres of excellence and tied to the sale of under-utilised NSW DPI assets. stations. Protracted negotiations involving the Minister, NSW DPI, The Division’s role is to: NSW Farmers’ Association, local government, industry and • provide strategic science to enhance the growth, the Public Service Association led to an agreement on the sustainability and biosecurity of NSW primary industries short-term future of assets at Grafton, Trangie, Gosford, Temora • undertake research and development and Deniliquin which had initially been proposed for sale. All parties committed to work together over the next three years • advise on research and science policy and issues to attract funds to support industry research, the target being • coordinate research investments and foster alliances and to match the government investment at each location. cooperative ventures • develop innovative solutions and technologies Strategic directions • underpin creative solutions to enhance public policy. The Minister and Director-General released the Primary Industries Science and Research Directions Statement to Within six months of the creation of the Department, the stakeholders for comment in late 2004. The statement, which Science and Research Division had circulated capability resulted from internal and external reviews of departmental statements for each branch in the Division to industry, research, underpins the Towards 2020 reinvestment plan. research and development institutions and other stakeholders. There are three parts: The branches and their responsibilities are: • an analysis of key strategic issues and relevant national • Systems Research – responsible for research on wild and state trends fisheries, aquatic ecosystems, agricultural farming systems, pastures and rangelands • a review of NSW DPI’s research capacity, areas of strength and competitive advantage • Rural Innovation which undertakes research on plant and animal genetics, biotechnology, climate science and • a plan for the future, including a framework for precision systems investment, proposed research priorities, and actions to deliver those priorities such as service delivery methods • Resources Research – with responsibility for research on and a reinvestment plan. the sustainable management of natural resources utilised by primary industries and for the impacts created such as A large number of submissions on the statement came in salinity and environmental contamination from a cross-section of stakeholders. These indicated strong support for the Division’s general strategic directions – 70 per • Production Research which conducts research relating cent of stakeholders supporting the proposed overarching to the horticulture, viticulture, animal production and research priorities. aquaculture industries The feedback is being incorporated in the Primary Industries • Health Sciences, Science Alliances and Evaluation Science and Research Strategy 2005-08, which is due for – responsible for research into animal and plant health, public release in the second half of 2005. food science and safety, weeds and vertebrate pest control as well as alliances with research institutions and New advisory body established cost-benefit analyses A new body, the Ministerial Advisory Council on Primary • Research Operations – with responsibilities for biometrics, Industries Sciences, will advise on science and research across taxonomy, scientific collections, commercial diagnostic the agricultural, fisheries, forestry and minerals resources laboratories for veterinary pathology, analytical chemistry, businesses. residues analysis and plant health, and research centres, institutes and stations. Chaired by Dr John Keniry of the Ridley Corporation, the council includes leading industry members, scientists

28 NSW Department of Primary Industries ANNUAL REPORT 2004–05 experienced in industry development and representatives of Dr Deirdre Lemerle is the first director of the Centre and, in NSW DPI and the NSW Food Authority. Its terms of reference this capacity, also assumes the role of Professor of Agricultural are to: Innovation. • advise on stakeholder science and research needs Coastal Agricultural Landscapes joint venture • advise on the alignment of NSW DPI’s research portfolio with stakeholder needs and state and national priorities The Centre for Coastal Agricultural Landscapes, a joint venture between our Wollongbar Agricultural Research Institute and • review and recommend strategies for the optimal Southern Cross University, commenced operations in late communication and uptake of research findings to 2004. The Centre will promote better collaboration and a stakeholder groups and the wider community higher profile for world-class science in coastal NSW. • advise on the impact of the science being contemplated or carried out Primary Industries Innovation Centre • advise on the Towards 2020 science and research Also in the reporting period, the Minister launched the reinvestment program. Primary Industries Innovation Centre which brings together the University of New England and NSW DPI’s Tamworth Research priorities for fisheries Centre of Excellence for Northern Farming Systems, Armidale Beef Industry Centre and Glen Innes Centre for Perennial The Minister launched Planning Strategic Research for Fisheries, Grazing. The Centre is targeting new opportunities for primary Aquaculture and Aquatic Conservation in New South Wales, industries and associated downstream processing activities to 2004-2009 at Ballina Fishermen’s Co-operative in November create wealth in northern NSW. 2004. This lists research priorities gathered from over thirty Legislation on gene technology stakeholder groups in NSW, including the commercial fishing The Gene Technology (GM Crop Moratorium) Bill was industry, recreational fishing groups, Indigenous groups, amended to improve and clarify the functions of the NSW conservationists, aquaculture industry, universities and Agricultural Advisory Council on Gene Technology and to government departments. Research providers and funding clarify the Minister for Primary Industries’ authority over the bodies will use the document when setting priorities for handling of cultivated GM food plants. future scientific activity in NSW. International certification for laboratories Cooperative research centres Eighteen research laboratories have now been certified under In July 2005, NSW DPI will become a partner in six new the international quality standard ISO900, the most recent cooperative research centres funded by the Australian being the Citrus Pathology and the Research Virology labs at Government. The six centres are: the Elizabeth Macarthur Agricultural Institute (EMAI) and the • Australasian Invasive Animals Australian Legume Inoculum Research Unit at Gosford. • Beef Genetics Technologies A further 22 laboratories should be accredited in the second half of 2005. • Cotton Catchment Communities NSW DPI is the first such organisation to attempt whole-of- • Internationally Competitive Pork Industry agency certification for research laboratories in Australia. The • National Plant Biosecurity increased level of certification has already helped us to win • Sustainable Forest Landscapes. the National Variety testing contract for cereals and, through independent assurance of our ability to meet international Over their seven-year life, we will invest in excess of quality management standards, will confer a competitive $71 million in science staff and related resources with the edge in bidding for other research contracts. Australian Government providing $159 million in grant funding. Partnerships Major projects E H Graham Centre for Agricultural Innovation FutureDairy The Minister for Primary Industries initiated the first in a series of partnership investment ventures when he opened the A $10.5 million national research and development project, Wagga Wagga Agricultural Innovation Park, subsequently FutureDairy is a partnership involving NSW DPI, Dairy Australia, renamed the EH Graham Centre for Agricultural Innovation. Victorian DPI and the universities of Sydney and Melbourne. NSW DPI’s Wagga Wagga Agricultural Institute and Charles The project, which will revolutionise the Australian dairy Sturt University at Wagga are the partners. Through the industry, concerns new fodder and feeding systems and new venture, Wagga gains a critical mass of scientists with the automated milking systems. FutureDairy research forms one ability to attract competitive project funding for research, component of our new dairy research strategy for NSW. extension and education.

NSW Department of Primary Industries ANNUAL REPORT 2004–05 29 Testing for exotic diseases NATA accredits olive oil sensory panel The virology laboratory at EMAI is increasing its capacity to do NSW DPI’s Organoleptic Panel, which assesses the sensory ‘same day’ screening of diseases such as avian influenza and qualities of olive oil, received NATA accreditation in 2004-05. Newcastle disease with the commissioning of new equipment Based in the DAS Olive Oil Testing Unit at Wagga Wagga, the to support large-scale rapid sample processing and testing. panel is the only one accredited in Australia. Equipment includes a new robotic workstation and a rapid The Testing Unit is trained to International Olive Oil Council real-time PCR cycler that will allow screening of samples for (IOOC) standards and is already receiving samples from the DNA and RNA. The equipment and associated test systems IOOC for analysis. give the laboratory the potential to screen more than 1000 samples per day. Stonefruit pest and disease management Artificial breeding of grey nurse sharks The stonefruit industry will soon have a national integrated pest and disease management strategy following the In early June 2005, the Minister announced a program to completion of a 250-page manual. As the lead agency for artificially breed the endangered grey nurse shark. The the project, NSW DPI collaborated with Horticulture Australia prestigious scientific journal Nature covered the story. to organise a series of 18 meetings in all of Australia’s major A scientist specialising in shark reproductive biology will stone fruit production regions that identified major pest oversee the research. Additional expert input will come from and disease concerns. The manual, which takes into account Sea World on the Gold Coast, Oceanworld Manly and other grower feedback at the draft stage, will present growers with Australian and overseas researchers. an overall strategy that will allow them to reduce pesticide use while keeping pest numbers below damaging levels. By Pre-slaughter control of pathogens doing so, they will be better able to meet consumer demand A project involving NSW DPI, CSIRO, Food Science Australia, for minimal chemical intervention in food production. Livestock Industries, Brisbane and the Queensland The manual should be available by October 2005. Department of Primary Industries investigated the biology of Shiga toxin-producing E. coli (STEC) – a recently emerged Sustainable forests foodborne pathogen – and potential on-farm intervention to The need to demonstrate ecologically sustainable decrease the excretion of the organisms by cattle. management has long been of concern to forest managers. Key findings demonstrate distinct STEC types in sheep The issue is complex, involving political, technical and compared to cattle, a conclusion that will assist medical statistical dimensions, but recent research published by NSW epidemiologists in human disease investigations and allow DPI fills in many of the knowledge gaps that have existed to insight into the ecology of STEC in ruminants. The project also date. identified that both probiotic bacteria and a virus (phage) The research shows the need for species monitoring in a inhibit growth of the pathogens. A diet with more roughage regional context. was additionally shown to reduce E. coli numbers in cattle faeces and change the distribution of virulence factors in the Saline aquaculture bacteria. Our inland saline aquaculture research at Wakool, funded The importance of this research is highlighted by the number in partnership with Murray Irrigation Ltd (MIL), ACIAR and of conference presentations on the project and articles the Fisheries Research and Development Corporation, published in peer-reviewed scientific journals. reported good progress in developing technology to culture rainbow trout, prawns, mulloway and other species in saline New diagnostic tests for pig respiratory disease groundwater. This year, around one tonne of inland ocean The Elizabeth Macarthur Agricultural Institute finalised an trout grown at Wakool was sold together with trial shipments important study examining new diagnostic tests for two of inland ocean prawns. NSW DPI and MIL are collaborating major respiratory diseases of pigs, pleuropneumonia and on a business plan to guide commercial development of trout mycoplasmosis. The project, supported by Australian Pork and prawns and ongoing research and development priorities Limited, provided valuable information on new diagnostic for inland saline aquaculture. tests, particularly the introduction of a new serovar- independent ELISA test for porcine pleuropneumonia. Use of Removing Caulerpa taxifolia the tests will lead to more effective disease control by the pig Our scientists released a report on work undertaken with the industry. University of Wollongong to develop environmentally benign ways of removing the invasive and destructive Caulerpa

30 NSW Department of Primary Industries ANNUAL REPORT 2004–05 taxifolia weed from NSW estuaries. The report identifies Conferences osmotic shock as the most promising control measure – the In 2004-05 NSW DPI hosted two major conferences, the coarse salt treatment killing plants within hours with little 4th International Fisheries Observer Conference and residual impact on the marine environment. The salting the Australasian Aquaculture Conference, ‘Profiting from technique is now a major component of our NSW Caulerpa Sustainability’. Both were held in Sydney. taxifolia Control Plan. The Biosecurity, Compliance and Mine Safety section of this report covers control of Caulerpa through building public awareness.

Divisional performance Units 2002-03 2003-04 2004-05 Outcomes: New crop/pasture varieties released no. 6 6 5 State market share of varieties developed by the Department: wheat % 30 31 35 canola % 70 55 55 soybeans % 75 85 85 chickpeas % 90 60 65 lupins % 55 60 65 lucerne % 35 40 45 Formal alliances with universities and other research partners no. 17 21 24

Outputs: Scientific and educational publications no. 803 797 804 Intellectual property arrangements in place no. 70 65 68 Samples processed by departmental laboratories no. 351 104 409 637 420 000

NSW Department of Primary Industries ANNUAL REPORT 2004–05 31 CASE STUDY

Excellence in service delivery to stakeholders

DEPARTMENTAL SCIENTIST S TOP W ORLD RANKINGS

Rankings b y an int ernational science indexing compan y sho w that NSW DPI is pr o viding NSW DPI has been w orld-class science t o pr omot e the g r o wth, sustainability and biosecurity of NSW primary r ec ognised as a pr o vider industries . of w orld-class scienc e T homson ISI has ranked the Department’s scientists in the t op one per cent in the w orld in and r esear ch tw o fields – ag ricultural sciences , and plant and animal sciences . T homson ISI index es 8700 int ernationally peer -r eview ed journals and , accor ding t o T hompson ISI head of r esear ch Dr Nancy Bey er, the number of papers pr oduced is a measur e of pr oductivity. ‘T he number of citations t o those papers – the r efer ences in papers indicating earlier w ork upon which the authors ha v e depended for their r esear ch – is a measur e of the influence or impact of this r esear ch’, Dr Bey er said . ‘T hus , b y counting publications and citations , w e obtain a quantifiable pictur e of the pr oductivity and impact of nations , institutions and individuals in specific ar eas of r esear ch.’ In April 2004, T homson ISI r ecor ded 492 papers fr om NSW A g ricultur e in the field of ag ricultural sciences . T hese papers w er e cit ed 1989 times , g iving a citation per paper a v erage of 4.04. In the same month, 370 papers fr om NSW A g ricultur e w er e r ecor ded in the field of plant and animal science . T hese w er e cit ed 1312 times , g iving a citation per paper a v erage of 3.55. In both instances , the citation rat e for papers author ed or co-author ed b y our scientists was sig nificantly higher than the A ustralian or w orld a v erage . T he A ustralian a v erage in the field of ag ricultural sciences was 2.4. In the field of plant and animal science it was 3.0. T he ISI ranking, ho w ev er, ma y not pick up r esear ch of r eg ional or local int er est because such w ork has limit ed int ernational import. Giv en its r eg ional focus , the impact of NSW DPI science is ther efor e likely t o be ev en g r eat er than that indicat ed b y the ranking.

32 NSW Department of Primary Industries ANNUAL REPORT 2004–05 BIOSECURITY, COMPLIANCE AND MINE SAFETY DIVISION

NSW Department of Primary Industries ANNUAL REPORT 2004–05 33 • creation of a special operations unit with tactical and BIOSECURITY, COMPLIANCE intelligence gathering responsibilities across the branch AND MINE SAFETY DIVISION • establishment of a single Prosecution Review Committee for better managed prosecution action across agriculture and fisheries Nature and scope of activities • coordinated training for all compliance staff The Division works closely with other divisions, government • orderly review of occupational health and safety issues agencies and industry to develop and deliver integrated across all compliance staff biosecurity and mine safety strategies, programs and responses. • coordinated provision of peer support for all compliance staff. Responsibilities include: • analysing and developing strategies to manage risks Compliance action • coordinating delivery of short and long-term programs to Compliance action in 2004-05 included the seizure by fisheries manage biosecurity risks compliance officers on the South Coast of approximately three • working with communities and primary industry tonnes of stolen abalone. Officers are using sophisticated participants to increase their capacity to manage these operational surveillance equipment and strategic intelligence risks analysis to target organised theft. The most serious offenders face heavy fines and, in some cases, custodial sentences. • developing approaches to achieve biosecurity and mine safety outcomes which reflect stakeholder views A large fisheries patrol vessel is under construction and should be operational in November 2005. Designed for fast • enforcing NSW DPI legislation to complement other response along the NSW coast from Batemans Bay, the vessel approaches to achieving government policy objectives will increase protection levels for the abalone and offshore • planning and delivering emergency responses to natural fisheries. disasters in accordance with the State Disaster and Emergency Plan. Drought assistance The Division comprises: Assisting producers affected by the prolonged drought has • Animal and Plant Biosecurity been a critical area of activity. At 30 June 2005, 89 per cent of the State was drought declared. We handled over 1000 calls • Surveillance and Biosecurity Operations on the Drought Hotline, processed 17 617 transport subsidies • Emergency Preparedness and Response worth more than $18.5 million for agistment, fodder and • Compliance Standards water, and organised 59 farm family gatherings. • Agriculture and Fisheries Compliance Operations Further details of NSW DPI drought assistance appear in this report in the section on the Agriculture and Fisheries Division. • Mine and Forest Safety Performance. Review of Mine Safety 2004 Major outcomes achieved In September 2004, the Minister for Primary Industries Compliance announced a review of mine safety by the Hon. Neville Wran AC QC, with assistance from Ms Jan McClelland and an An integrated approach across industry expert panel. NSW DPI provided resources and contributed The Division successfully integrated biosecurity and information, including a substantial submission. The report on compliance services across a range of industries including the review was publicly released in April 2005. livestock, commercial plants, fisheries and forests. Integration Overall, the review found that a more cooperative approach allows a more consistent approach to activities including by industry, unions and government on mine safety would be planning, training, enforcement and response. Additionally, an beneficial. The Government is now considering the review’s expanded first response team was created for biosecurity and 31 recommendations. natural disaster emergencies. Although the rate of mine accidents continued to decline The new integrated approach has already been put into in 2004-05, there were still a number of incidents reported, practice in managing a number of incidents and is working including one fatality at a quarry. well. The Mine Safety Advisory Council did not formally meet Formation of a single branch containing all agriculture and during 2004-05, however, the various industry-specific safety fisheries uniformed compliance staff is allowing progressive advisory committees continued to meet and members of the implementation of a strategy for integrated compliance Council were fully consulted and involved in the Review of activities across NSW DPI. Initiatives include: Mine Safety conducted by the Hon. Neville Wran.

34 NSW Department of Primary Industries ANNUAL REPORT 2004–05 Biosecurity A national survey of citrus orchards was undertaken to demonstrate the absence of the disease and restore national Biosecurity is the exclusion, eradication or effective pest free area status. As part of this process, NSW DPI management of risks to the economy, environment and coordinated a survey of NSW citrus growing regions according human health posed by pests, diseases and chemical residues. to the national protocol. No evidence of citrus canker was Major biosecurity operations in 2004-05 targeted threats to found in NSW, a result that ensured continued access to the fishing, aquaculture, cattle and citrus growing industries. export markets including New Zealand.

Aquatic weed control Assistance for oyster farmers affected by QX disease The aquatic weed salvinia has caused major problems on the In June 2004, QX disease was detected in Sydney rock oysters Hawkesbury River. An extensive $1.3 million program over in the Hawkesbury River. QX disease is caused by a protozoan 18 months, which involved harvesting, installation of booms parasite Marteilia sydneyi and is specific to the Sydney rock and chemical control, ensured that fishing and boating could oyster. continue. Monitoring since December 2004 has indicated an increased Biological control using weevils also shows promising results. incidence of QX in the Hawkesbury. Significant mortalities Initial findings at 12 monitoring and research sites were that occurred in the upper river area, where the bulk of oyster over 90 per cent of plants sustained some degree of damage. farming occurs. An increasing level of community awareness is assisting in As chair of the multi-agency QX Disease Task Force, NSW DPI control of the noxious marine weed Caulerpa taxifolia, with led development of a package of measures to assist industry. NSW DPI promoting understanding of the problem over the The measures included: year through erection of new Caulerpa warning signs and • waiving some government charges distribution of advisory material. We also trained more divers for another Caulerpa handpicking day in North Harbour • allowing growers free access to financial counselling and Aquatic Reserve. family support services Our scientific approach to Caulerpa control is detailed in this • introducing a government-subsidised de-stocking and report under the Science and Research Division. infrastructure cleaning program • introducing and funding a concessional loan scheme to Cattle ticks help growers adjust to the production implications of the The NSW DPI cattle tick program continued with a number outbreak. of outbreaks identified and subsequently eradicated. The last remaining section of the NSW Cattle Tick Protected Area Biosecurity databases around Kyogle was also released, freeing up movement of The Division develops and manages strategic biosecurity data livestock from the 183 properties in this area and allowing systems for optimal delivery of NSW DPI policies and priorities. movement into other parts of NSW. This was another Some 58 biosecurity databases provide essential information milestone in the management of cattle tick in NSW. for internal users and external clients – supporting surveillance, control and compliance, and market access for Tick fever animal, plant and fisheries products. The integration or linkage The first outbreak of tick fever since 1997 prompted of some of these databases with components of the Property representations from stock owners to the Minister for Primary Event Management System in the next two years will further Industries. In response, the Minister initiated an inquiry by enhance useability and efficient data management. Mr Garry West into the potential use of tick fever vaccine, the introduction of Queensland cattle into NSW and the use of Planning and surveillance electronic surveillance to enhance border control measures. National plans After receiving submissions and consulting widely with North Coast producers, Mr West presented his report to the Minister Collaboration between Rural Lands Protection Boards and on 30 June 2005. divisional staff ensured effective animal health planning. Among important initiatives were coordination of disease Citrus export markets protected surveillance, emergency disease preparedness and animal health control programs. Assessment of these initiatives Following the detection of the exotic bacterial disease citrus against 179 draft national animal health criteria showed full canker in Queensland, NSW DPI regulatory and horticultural compliance against 93 per cent of the criteria and partial staff went to Queensland to assist with the early surveillance compliance against the remainder. Corrective action was program. NSW DPI also provided critical laboratory analysis taken to address performance in areas of partial compliance. and diagnostic services for the detection of the disease. The Australian Veterinary Emergency Plans (AUSVETPLAN) are the basis for Australia’s exotic disease preparedness.

NSW Department of Primary Industries ANNUAL REPORT 2004–05 35 The Division contributed to the revised AUSVETPLANs for • revised and updated CDs to assist trainers and school avian influenza, disposal and destruction, and the Control teachers in delivering all courses centres management manual. • an integrated manual and workbook for a new course on on-farm fumigation. Monitoring The Division also designed an abridged Chemical Risk Australia has the world’s lowest risk rating for Bovine Management course to enable departmental and rural lands Spongiform Encephalopathy (BSE) which has devastated protection board veterinarians to meet new chemical use cattle markets around the globe. Surveillance of neurological requirements under the Pesticides Act 1999. cases in cattle and sheep over the year, monitoring of the ban on feeding meat products to ruminants, and monitoring of Ovine Johne’s disease management imported cattle continued to ensure that NSW and Australia maintain the current BSE ranking. This program successfully moved from a largely regulatory program to one based on management and producer Divisional staff continued to monitor the exotic diseases involvement. The underlying principle is that by using animal hotline which members of the public call for advice on health statements producers assess their risk of introducing any suspected exotic disease. There were a number of Ovine Johne’s disease (OJD) when purchasing sheep. The investigations as a result of hotline calls. These included a Department is currently reviewing the statements. Producers suspected case of foot-and-mouth disease in piglets and a are also increasingly using vaccine in OJD management to queried case of the exotic disease vesicular stomatitis in a reduce stock mortalities. horse. Both cases proved negative. The industry advisory committee for the disease identified Educating industry a number of new projects it considers worthy of funding via a new OJD transaction-based levy introduced under the Foot-and-mouth disease, commonly caused internationally by Agricultural Livestock (Disease Control Funding) Act1998. The feeding pigs prohibited substances (swill), could potentially projects include an OJD extension coordinator, provision cost Australia billions of dollars. The Division held workshops of negative abattoir surveillance information, a review of for both Rural Lands Protection Boards and NSW DPI exclusion areas and enhanced vaccination safety. The Minister regulatory officers to ensure that they can detect and deter for Primary Industries will make the final decision on funding people from feeding swill to pigs. based on the committee’s recommendations. Sudden sheep and cattle deaths from poisonous plants continue to occur and must be differentiated from possible Fruit fly control emergency disease incursions. For educative purposes, The news on fruit fly control has been positive. Most of the divisional staff conducted poisonous plants workshops south-western production towns regained their status as at Wagga Wagga and Tamworth. More than 100 district free of fruit fly for the domestic and New Zealand markets. veterinarians, private practitioners, departmental staff, An integrated program of sterile insect release and targeted university staff and interstate visitors attended. pesticide application, as well as dry conditions, resulted in Market assurance declining fruit fly populations in all production towns and orchard areas in the Fruit Fly Exclusion Zone. Pesticide and residue risk reduction NSW, Victoria and South Australia all contributed to an Access to international markets is threatened if testing shows upgrade of the climate control system in the sterile fruit fly organochlorine (OC) residues in red meat. OCs degrade very production facility at Camden. slowly in soil and treatments applied over 20 years ago still represent a risk. Legislative support for animal, fish and plant health programs In NSW, 350 property management plans control the access Significant changes in policy in NSW DPI animal, fish and plant of stock to affected soils. Regulatory officers from the Division health programs were made effective by amendments to legal are conducting 120 audits of producers’ compliance with the instruments including: plans and investigating any problems revealed. • removal of the cattle tick quarantine line near Kyogle, To ensure that chemicals are applied correctly and that in line with the Minister’s decision to release the last residues do not become a problem, the Division developed remaining cattle tick protected area training resources to support the delivery and assessment • declaration of the Yass Rural Lands Protection Board area of the SMARTtrain suite of chemical accreditation courses. as part of the footrot protected area, demonstrating the Resources included: progress of the footrot campaign • a video and PowerPoint presentation on calibrating a • gazettal of a new exclusion area for the serious grapevine boom spray pest phylloxera, along with restrictions on the movement • a revised and updated reference manual and assessment of high-risk materials such as grapevines, soil and guide for the AQF4 Chemical Risk Management course machinery into and within NSW, to support most of NSW becoming an exclusion area.

36 NSW Department of Primary Industries ANNUAL REPORT 2004–05 Mine safety • fatal injuries to a quarry employee sustained when the haul truck he was driving broke through the roadside Legislation barrier and rolled down a steep slope. The Division continued to take a guiding role in legislative An inquest into the death of a miner at a metalliferous mine in reform to promote a positive safety culture within the NSW November 2002 commenced in May 2004 and was finalised in mining industry. February 2005. Following passage of the Mine Health and Safety Act 2004, Lessons Learnt project the Division began work on supporting regulations to allow its commencement. Together with the Coal Mine Health and In July 2004, an analysis of accident investigation findings Safety Act 2002, the Act represents a major reform of health was presented at the annual NSW Mining Industry OHS and safety legislation for NSW mines. Conference. The primary conclusion was that awareness and detection of mine safety risks were deficient. The Coal Competence Board which the Division is setting up under the Act will also play a part in improving mine safety. Measuring performance The Division continued to liaise with WorkCover in developing During the reporting period, the Division conducted a pilot regulations to support the Explosives Act 2003, revising the survey of hours worked within the mining industry. Despite a dangerous goods provisions, and developing regulations for poor response rate, the survey provided some insight into the major hazardous facilities – all of which will apply to mines. hours worked and the incidence of injuries to contractors. The Administration of the regulations will be an ongoing divisional exercise also gave the Division an understanding of how to role. collect information more effectively in the future. Accident investigation As part of a continuous improvement program, the Division is reviewing the COMET (Common Mines Environment) The table below presents accident investigation statistics for computerised data collection and storage system. The review the 2003-04 and 2004-05 financial years. entails regular revision of data and quarterly user group meetings to discuss the system’s use and functionality. The Performance statistics 2003-04 2004-05 outcome will be more useful information on mine safety Investigations commenced 4 2 performance for both NSW DPI and industry. Investigations completed 2 4 Communication and consultation Investigations in progress 4 2 The Division utilised a variety of methods in promoting safety Reports submitted to Coroner 2 2 information to all stakeholders. Workshops, seminars and Coronial inquests commenced 2 0 conferences included the: Prosecutions commenced 8 2 • Occupational Health and Safety Conference 2005 in Successful prosecutions 10 6 collaboration with the NSW Minerals Council • Electrical Engineering Safety Seminar The Division completed investigation of four cases carried • Mechanical Engineering Safety Seminar over from the previous reporting period. The investigations concerned: • Check Inspectors Seminar • fatal injuries to a contractor on the surface at a coal mine • mine operator workshops and safety awareness courses at in November 2003 while a load was being moved by a Lightning Ridge and White Cliffs. mobile crane In a comprehensive program, the Division increased • fatal injuries to a contractor at a coal mine in May 2004 dissemination of information via the website and email while due to a fall of roof continuing to publish hard copy safety alerts, mine design guidelines, handbooks and codes of practice. The Mine • fatal injuries to a contractor at an open cut coal mine in Safety Update was distributed to more than 3000 industry May 2004 while changing a tyre on a large dump truck stakeholders. The Division also developed resources to explain • serious head injuries sustained by a mine employee at an the transitional arrangements during the move of mineral underground coal mine in May 2004 when pulling chains resource functions from Sydney to Maitland and Thornton. failed. Another new publication was the comprehensive Audit Two new accident investigations commenced during 2004-05. Checklist for OHS Consultation for NSW Mines that the Division These concerned: developed to assist mines in complying with current safety • spinal injuries to a mine employee sustained while legislation. travelling on the conveyor of a continuous miner at an underground coal mine

NSW Department of Primary Industries ANNUAL REPORT 2004–05 37 Divisional performance Units 2002-03 2003-04 2004-05 Outcomes: Persons accredited in emergency response preparedness no. 189 144 193 Compliance rates for recreational fishers % 86 89 88 Compliance rates for commercial fishers % 91 91 91 Compliance rates for aquaculture % 48 40 85

Outputs: Biosecurity plans to which Department has contributed no. 86 68 104 Training programs for emergency response preparedness no. 10 15 15 Biological control agent releases no. 237 264 270 Attendees at workshop seminars relating to health and safety in the no. 1 093 2 400 2 400 mining industry Major investigations (mining) no. n.a. n.a. 5 Prosecutions (mining - Investigation Unit reports) no. n.a. n.a. ... Prosecutions (fisheries) no. 436 326 400 SEINS penalty notices (fisheries) no. 1 764 1 660 2 500

38 NSW Department of Primary Industries ANNUAL REPORT 2004–05 CASE STUDY

Healthy and safe industries

LOCUST CONTROL A BILLION DOLLAR SUCCESS

T he 2004-05 A ustralian plague locust contr ol campaig n was the lar gest and most successful Use of insecticides and campaig n of its type in NSW hist ory. Results sho w $1 billion of NSW cr ops and pastur es air craft acr oss lar ge sa v ed at a cost of $21.3 million. T he campaig n was a coor dinat ed effort in v olving NSW DPI, Rural Lands Pr ot ection Boar ds , ar eas meant that risk NSW Farmers’ A ssociation, A ustralian P lague Locust C ommission and landholders . HQ at management was Orange dir ect ed local contr ol centr es at Narrabri, C oonabarabran, Gunnedah, Dubbo, Mudgee , Narrandera, Forbes , Molong, Deniliquin and Wagga Wagga. crucial Statistics confirm the campaig n’s scale: • 16 688 locust r eports b y lando wners • enough insecticide issued t o tr eat o v er 1 million hectar es for g r ound and aerial contr ol • 2400 aerial tar gets tr eat ed b y NSW DPI acr oss nearly 400 000 hectar es • 800 aerial tar gets tr eat ed b y the A ustralian P lague Locust C ommission o v er 352 500 hectar es in NSW. Prior t o the expect ed outbr eak, an action plan was dev eloped and implement ed . A ctivities included surv eillance , farmer a war eness w orkshops , a media campaig n dir ect ed at rural communities and r eview of locust contr ol plans . T he sig nificant use of insecticides and air craft acr oss lar ge ar eas meant that risk management was crucial . A ft er tw o air craft incidents mid-campaig n, the second of which in v olv ed tw o trag ic fatalities , all air craft operations w er e suspended while a specialist assist ed NSW DPI in r eviewing risk management for aerial locust contr ol . Changes included the dev elopment of an a viation capability risk management plan, g r eat er definition of aerial tasks in v olv ed in locust contr ol , and further r evision of operating pr ocedur es t o enhance risk mitigation pr ocesses that w er e alr eady in place . Staff also r eceiv ed additional training in air craft operations . T hr oughout the campaig n, education of landholders on the safe use of insecticides was a priority. T her e w er e landholder a war eness w orkshops acr oss NSW plus br ochur es on the safe use of the insecticide , including r esidue aspects . In addition, NSW DPI sought landholder appr o val prior t o aerial spra ying. A variety of insecticides w er e on hand so that an appr opriat e insecticide could be used on each farm, including a fungal agent for en vir onmentally sensitiv e ar eas . A ft er the campaig n, debrief s identified what w ent w ell and wher e ther e was scope for impr o v ement. Next time w e will be ev en bett er pr epar ed .

NSW Department of Primary Industries ANNUAL REPORT 2004–05 39 STRATEGY, POLICY AND COMMUNICATIONS DIVISION

40 NSW Department of Primary Industries ANNUAL REPORT 2004–05 opportunity to comment on the draft – their input leading to STRATEGY, POLICY AND amendments – before production of a final plan, which the COMMUNICATIONS DIVISION Board of Management endorsed. The corporate plan outlines the strategic context for NSW DPI activities rather than detailing the activities themselves. At the Nature and scope of activities next le vel down, the divisional plans will establish detailed The Strategy, Policy and Communications Division plays a s t r a te gi e s, p e rfo rm a n c e t a rg e t s a n d m i l e s to n e s to a s s e s s leading role in translating government priorities and industry how well divisions are contributing to corporate outcomes. needs into NSW DPI policy and corporate agenda. It also Divisional plans will also link planning with resource allocation. c o o rd i n a te s w h o l e-o f -g ove rn m e n t a p p ro a c h e s o n i n d u s t ry issues, manages contentious issues and publicises NSW DPI Dro ug h t re l i e f achie vements. Another important achie vement for 2004-05 was The Division’s five branches and their responsibilities are: assessment of the industry impacts of se vere drought to gain Commonwealth exceptional circumstances relief for all • Po l i cy a n d Legi s l a t i o n Co o rd i n a t i o n B r a n c h – s e t t i n g e l i gi b l e d ro u g h t- a ffe cte d N S W f a rm e r s. ove r a l l p o l i cy d i re ct i o n a n d a ct i n g a s t h e fo c a l p o i n t fo r coordination of Indigenous policy across NSW DPI Activities included: • Industry Analysis Branch – providing economic and social • de veloping and submitting successful applications for analyses of policy options and preparing innovative exceptional circumstances relief for all producers in the and integrated policy options for consideration by Cooma–Bombala district, Gundagai (orchardists) and the stakeholders M u rr ay Va l l e y ( ri c e growe r s ) • Public Affairs and Media Branch – coordinating • p re p a ri n g d e t a i l e d c ro p re p o rt s t h a t re s u l te d i n c h a n g e s management of critical matters and promoting the work to exceptional circumstances crop criteria and wider of the Department and primary industries support coverage throughout NSW cropping areas • Corporate Planning and Risk Management Branch • c o m p i l i n g c o m p re h e n s i ve re p o rt s o n d ro u g h t re c ove ry to – de veloping and implementing frame works for corporate support a re vie w of Commonwealth decisions to restrict g ove rn a n c e, p l a n n i n g a n d re p o rt i n g p rov i s i o n o f a n a d d i t i o n a l 1 2 m o n t h s’ re l i e f to s e l e cte d a re a s. Th e re p o rt s we re c ri t i c a l to re v i e w o f f u rt h e r a re a s • Communications Branch – driving strategic and to additional exceptional circumstances declarations communications through electronic and hard copy publishing and e vent management. • supporting the de velopment of national drought policy t h ro u g h i m p rove d a d m i n i s t r a t i ve a rr a n g e m e n t s fo r M a j o r o u tco m e s a c h i eve d e xc e p t i o n a l c i rc u m s t a n c e s d ro u g h t re l i e f a n d re d i re ct i o n o f re l i e f m e a s u re s to e n c o u r a g e gre a te r o n - f a rm Di re ct i o n s e t t i n g p re p a re d n e s s Th e b ri n gi n g to g e t h e r o f fo u r a g e n c i e s to fo rm a n e w • contributing to the de velopment of a national system department meant major change for all personnel involved. for monitoring changes in climatic, environmental The way in which staff did their jobs changed and, more and production variables rele vant to exceptional importantly, the nature of the work changed as jobs were circumstances drought declarations. A monitoring realigned with the goals of the ne w organisation. One of prototype is being e valuated for potential use in future four divisions with integrated functions across the whole of dr oughts . the Department, the Strategy, Policy and Communications Division was instrumental in setting and communicating the Co m mu n i ca t i o n s ove r a l l s t r a te gi c d i re ct i o n . Following the establishment of NSW DPI, the Division At the centre of the strategic frame work is the Co r p o rat e Pl a n i m m e d i a te l y c o m m e n c e d i n te gr a t i o n o f t h e fo rm e r a g e n c i e s’ 2005-2008, which articulates NSW DPI’s vision and values, websites, de veloped a ne w intranet for use by all staff, and a n d c l e a rl y d e fi n e s ke y re s u l t a re a s, i n te n d e d o u tc o m e s, c re a te d c o rp o r a te b r a n d i n g fo r a l l p ro m o t i o n a l m a te ri a l. and strategies. The plan also identifies the high-le vel ke y In the interest of optimal communication with NSW DPI performance indicators against which we will assess our stakeholders, the Division initiated a program to foster p ro gre s s ove r t h e c o m i n g ye a r s. consistent communications planning. Outcomes to date The Division led the de velopment of the corporate plan, include the introduction of a communications planning coordinating input from many stakeholders and staff. The template in ke y areas. The program will continue in the ne w initial phase involved a series of workshops held from October financial year with a re vie w of publications and e vents. A 2004 to March 2005 at which executives and senior managers protocol is already in place for assessment, coordination and provided extensive input into a draft plan. Staff then had the e valuation of sponsorship and e vents.

NSW Department of Primary Industries ANNUAL REPORT 2004–05 41 As well as planning future external communication, the staff, are designed to ensure a prompt and accurate response Division promoted the work of NSW DPI through production to media inquiries. of an extensive range of corporate material including the Bush Telegraph magazine, manuals, fact sheets, advertisements and Supporting rural women posters. The Rural Women’s Network is a small but high profile Internal communications was also a major focus. Over 500 program within NSW DPI. The network’s aim is to connect the staff participated in an audit to assess internal communication NSW Government and the community on issues affecting practices, processes and attitudes within NSW DPI and rural women and to empower rural women to achieve their set a benchmark for future audits. The findings are now goals. being compiled and will form the basis of an internal In 2004-05 the network: communications plan. The activities of the branch have also been critical to the successful integration of NSW DPI. • produced and distributed three editions of the Country Web newsletter Legislative program • coordinated the popular 2005 Rural Woman of the During 2004-05 the Division coordinated the preparation of Year Award for NSW, sponsored by the Rural Industries internal Cabinet Minutes and responses to many external Research and Development Corporation. Jenny Bradley Cabinet Minutes. The Division was also responsible for won the award for pioneering new practices in the lamb managing the NSW DPI legislative program, providing support industry for passage of the following Bills through parliament: • ran 14 Shaping Our Futures Together workshops on • Brigalow and Nandewar Community Conservation Area women’s career and personal development Bill 2005 • launched Daring to Dream, a web-based program that • Coal Acquisition Amendment (Fair Compensation Bill) publicises how rural women are successfully acting as 2005 change agents within their communities and provides a mechanism for networking and informal mentoring. • Game and Feral Animal Control Amendment Bill 2005 • Noxious Weeds Amendment Bill 2005 Socio-economic assessment and standards • Petroleum (Submerged Lands) Amendment (Permits and The Division assisted the Natural Resources Commission Leases) Bill 2005 in developing a socio-economic standard and community • Prevention of Cruelty to Animals Amendment Bill 2004. targets to help guide Catchment Management Authorities with decisions on regional investment. We also contributed to Policy development and review the development of the Socio-Economic Assessment Guide for Catchment Management Authorities, used to assess the socio- Policies provide a basis for action and decision-making. Within economic impacts of specific investment proposals. NSW DPI a policy development framework was created to: • establish rules, procedures and resources that will ensure Hawkesbury River oyster farmers a consistent approach to the development of well- As discussed earlier in this report, Hawkesbury River oyster articulated policies farmers were severely affected by the outbreak of QX • ensure our policies reflect the vision, mandate and goals disease in 2004-05. The Division prepared what proved to of the new department and facilitate our operations be a successful proposal for NSW Government assistance to the industry. Roll-out is now in progress. An application to • allow staff members easy access to current policy the Australian Government for exceptional circumstances • provide a mechanism for monitoring and review of assistance was also completed. existing policies • set up formal channels for communicating policy. The framework, which is now in use, includes a policy template, development procedures and writing guidelines.

Media relations The divisional staff across the State succeeded in gaining positive media coverage for NSW DPI through media releases, articles and publications. Given the diverse and widespread nature of NSW DPI activities, we wrote a policy and protocol to assist staff in dealing with the media. These documents, which apply to all

42 NSW Department of Primary Industries ANNUAL REPORT 2004–05 CASE STUDY

Excellence in service delivery to stakeholders

M APPING THE JOURNEY TO THE NEW DEPARTMENT

T he challenge: t o take 3 600 staff fr om four agencies on a journey of or ganisational change Building DPI helped t o the NSW Department of Primary Industries . T he solution: a major change initiativ e called Building DPI which r ecog nised that staff must help shape the new department’s staff shape the strat egic vision, strat eg ies and values . dir ection of the new T he first st ep was t o pr epar e a ‘journey map’ that g raphically r epr esent ed ho w staff w ould department mo v e fr om the pr esent t o the futur e along with mat erial for int eractiv e staff feedback sessions . Next was the selection of 20 mast er facilitat ors whose tasks included r eviewing the journey map and training additional facilitat ors . A t this stage the change pr og ram identified that staff should understand the for ces impacting on NSW DPI, namely: • the chang ing competitiv e landscape • incr easing go v ernment r egulation • shifting Indigenous priorities • chang ing stakeholder needs Giv en the number of staff and locations in v olv ed , r ollout of the feedback sessions r equir ed detailed planning. In the thr ee months t o 30 June 2005, 3200 staff att ended 110 forums at 42 locations acr oss the Stat e . T he cont ent and schedule planning paid dividends . Pr e and post session questionnair es indicat ed that staff understanding of the new department incr eased . Feedback fr om all sessions was r ecor ded and , demonstrating ho w seriously it was taken, led dir ectly t o changes in NSW DPI ’s corporat e plan. T he full commitment and ongoing in v olv ement of the Boar d of Management and the senior management t eam w er e the keys t o the o v erall success of the change initiativ e . T hey ensur ed sufficient human and financial r esour ces w er e allocat ed . W ith the new department no w fully operational , Building DPI will contribut e t o the imminent r ollout of branch and individual plans as staff will ha v e a clear er understanding of corporat e lev el vision and strat eg ies . In the end , the success of the initiativ e will be measur ed b y impr o v ed service deliv ery, stakeholder satisfaction and staff commitment.

NSW Department of Primary Industries ANNUAL REPORT 2004–05 43 CORPORATE SERVICES DIVISION

44 NSW Department of Primary Industries ANNUAL REPORT 2004–05 The Division paid 17 617 claims under the Drought Transport CORPORATE SERVICES DIVISION S u b s i d y Sc h e m e to d ro u g h t a ffe cte d f a rm e r s. E a c h c l a i m w a s p a i d, o n ave r a g e, w i t h i n two we e k s o f re c e i p t . Nature and scope of activities The introduction of BPay facilities further enhanced service to The Corporate Services Division provides advice and clients, as did the establishment of a hosted payment page assistance to enable staff in the other six divisions of NSW DPI on the Department’s website which allows clients to pay to do their work efficiently and effectively. Based principally in d e p a rt m e n t a l i nvo i c e s by c re d i t c a rd. Orange, with some staff at other sites to provide local support, In the interest of service improvement, the NSW DPI library the Division comprises: expanded electronic provision of services and documents to • Finance and Administration staff and external clients. Staff received training so that the y could make the most effective use of the electronic databases • H u m a n Re s o u rc e s a n d j o u rn a l s. • As s e t Ma n a g e m e n t The Division introduced ne w procurement processes to • In fo rm a t i o n a n d Co m m u n i c a t i o n Te c h n o l o g y improve operating efficiency including: • Leg a l Se rv i c e s. • the use of purchasing cards for purchases under $1500 • e s t a b l i s h m e n t o f p re fe rre d s u p p l i e r a gre e m e n t s to M a j o r o u tco m e s a c h i eve d achie ve savings in high volume purchases of goods and services . Consolidation of corporate services functions Under NSW DPI’s shared corporate services strategy, the Amalgamation of ICT infrastructure corporate services divisions of the three former agencies that The major focus in information and communications now make up our non-trading component were consolidated technology was on the amalgamation of the separate into one unit. This and the related initiatives detailed below i n f r a s t r u ct u re s o f t h e fo rm e r a g e n c i e s i n to a s i n g l e n e two rk. resulted in significant ongoing savings in corporate overheads – s av i n g s t h a t a re b e i n g re d i re cte d to o u r f ro n t l i n e a ct i v i t i e s. To i m p rove t h e fl ow o f c o m m u n i c a t i o n s b e twe e n d i ffe re n t locations: Consolidation entailed the integration of three separate financial management information systems into one (SAP) • d a t a n e two rk s we re c l o s e l y c o u p l e d, t h e re by p rov i d i n g and three human resources management information systems access to a single intranet into one (Aurion). The entire process was achie ved using • a single help desk at Orange replaced three separate help i n te rn a l s t a ff a n d re s o u rc e s. desk operations Savings of $1 million per year in rent will be realised through • e m a i l s y s te m s we re m o re c l o s e l y l i n ke d. the rationalisation of accommodation in locations where we had more than one office. Co-locations or relocations Extensive use of video conferencing led to better o c c u rre d a t Co o m a , Ya s s, Fo rb e s, S i n g l e to n , Loc kh a rt / communication between offices and reduced travel Wa g g a , Ri c h m o n d / Wi n d s o r, S t Leo n a rd s / Ma i t l a n d, S yd n e y e x p e n d i t u re. Fu rt h e r e x p a n s i o n o f n e two rk c a p a c i ty, b a s e d CBD, Lismore/Wollongbar, M ullumbimby/M urwillumbah, on broadband contracts negotiated through the Department Tu m u t , Ma n i l l a / Ta mwo rt h , Mi l d u r a / B u ro n g a / D a re to n , of Commerce, improved communications and also reduced N e wc a s t l e / Ma i t l a n d, We l l i n g to n a n d C row s N e s t / Fle m i n g to n / costs . Wollstonecraft. Co-locations at a further se ven locations Essential services to NSW DPI clients and staff were (Co b a r, O r a n g e, De n i l i q u i n , A rm i d a l e, Inve re l l, G r a fto n a n d maintained, with minimal interruption, during the transfer of Sydne y CBD/West Pennant Hills) will be finalised next financial computer facilities from the old Mineral Resources offices at year. St Leonards to our ne w Maitland office. The work coincided The ne w Corporate Services Division re vie wed the majority with the commissioning of a modern communications o f c o rp o r a te p o l i c i e s, p ro c e d u re s a n d p ro c e s s e s o f t h e fo rm e r network integrating voice and data communications through agencies and brought them together into a ne w corporate broadband links to 13 sites – yet another initiative that will standard. The remainder of the process will be completed enhance communication capabilities and cut costs. during the next financial year. A PC replacement program continued to improve computer re l i a b i l i ty a n d p e rfo rm a n c e a n d e n h a n c e s t a ff p ro d u ct i v i ty. Improvements in finance and administration When the program concludes, all computer users in NSW DPI NSW DPI signed agreements with the Game Council will have a standard operating environment. of NSW and the NSW Food Authority to provide office De ve l o p m e n t o f a n e w s o ftw a re p a c ka g e kn ow n a s Fro n t Ga te accommodation at a number of our sites throughout the was completed to provide frontline staff and other agencies State. The initiative will produce savings for all agencies. with spatial information on properties during agricultural emergencies. This system, based on cadastral and topographic

NSW Department of Primary Industries ANNUAL REPORT 2004–05 45 data supplied by the Department of Lands, will be the starting At Lismore, the chemical residue laboratory closed. Diagnostic point for further development of Geographical Information capacity was then transferred to better facilities at the System capability within NSW DPI. Wollongbar Centre. Progress towards a single records management system The motor vehicle fleets of the former departments of began with a major system upgrade completed in 2004-05. Fisheries, Agriculture and Mineral Resources were rationalised The new records system will enhance internal electronic and incorporated into one fleet with operational savings of communications and reduce duplication and costs. approximately $0.45 million per annum.

Staffing the new organisation Legal services Creation and implementation of our new management Legal services in the former departments of Mineral structure has been a major human resources undertaking. Resources, Fisheries and Agriculture were amalgamated, with To date, there has been considerable progress in the the 15 legal officers grouped into three main units. Staff are evaluation of positions and appointment of staff. located at Orange, Wollstonecraft and Maitland. A Joint Consultative Committee was established with Compliance with subpoenas by NSW DPI and the gazettal of the unions to ensure that industrial issues are managed legal documents was centralised in Orange. appropriately in the context of the operations of the new agency. Many issues were resolved including: Electronic Services Delivery • relocation of the Mineral Resources Division staff The Department offered a wide range of information services to Maitland from four public websites. This included access to both new • development of new employment policies and and archived publications, with thousands of titles available procedures electronically. Hard copy publications can also be purchased online though the NSW Government Bookshop. • consultation on co-location and relocation initiatives Other services available electronically include: • development of a Memorandum of Understanding regarding the implementation of decisions relating to • online and voice activated purchase of recreational fishing our 2004-05 budget. licences With a view to reducing duplication in management, • online display and query of historical and current corporate support and other non-front line positions, mineral exploration tenement information, and mineral NSW DPI implemented a voluntary redundancy program exploration title applications after negotiation with the Public Service Association. We • online provision of transactional information to large subsequently processed more than 300 redundancies and commercial clients of forest investment services. helped all staff involved through the Job Assist Program. Servicing other agencies Asset rationalisation NSW DPI established a service level agreement with the Under our reinvestment strategy, the Division sold The NSW Coal Compensation Board to provide corporate services Entrance office and began disposal of a number of other (payroll, personnel, accommodation, IT and other services) to properties including laboratories at Lidcombe, a part of the Board. We now provide corporate services to the Temora Agricultural Research and Advisory Station, and a part NSW Rural Assistance Authority, the Game Council of NSW and of Wollongbar Agricultural Institute. In addition, a number of the NSW Coal Compensation Board on a commercial basis. leases for surplus properties on the Queensland/NSW border were terminated. In order to reduce overheads and eliminate duplication, NSW DPI shifted dairy science to Elizabeth Macarthur Agricultural Institute (EMAI). This initiative involved the closure of the Wollongbar Agricultural lnstitute dairy and enhancement of the EMAI dairy. The enhancements will support a major new dairy research program worth $9 million in partnership with Dairy Australia at EMAI. NSW DPI research will also benefit from the relocation of Forests NSW staff to the former Grafton Agricultural Research and Advisory Station and the leasing of 700 hectares to Forests NSW for research activities involving forestry plantations.

46 NSW Department of Primary Industries ANNUAL REPORT 2004–05 9

FINANCIAL STATEMENTS

Statement by the Director-General 48 Independent Audit Report 49 Statement of financial performance 50 Statement of financial position 51 Statement of cash flows 52 Supplementary financial statement 53 Summary of compliance with financial directives 54 Notes to and forming part of the financial statements 1. Summary of Significant Accounting Policies 55 2. Operating Expenses 64 3. Revenues 66 4. Gain/(Loss) on Disposal of Non-Current Assets 67 5. Operating Profit 67 6. Income Tax Equivalents 68 7. Conditions on Contributions 69 8.. Appropriations 70 9. Acceptance by the Crown Entity of Employee benefits and Other Liabilities 70 10. Programs/Activities of the Department 70 11. Current Assets - Cash 71 12. Current Assets - Receivables 71 13. Current Assets - Inventories 72 14. Current - Non-Current Assets - other financial assets 72 15. Current Assets - Other 73 16. Non-Current Assets - Property, Plant and Equipment 74 17. Self Generating and Regenerating Assets 76 18. Restricted Assets 78 19. Current Liabilities - P ayables 78 20. Current/Non-Current Liabilities - Interest Bearing Liabilities 78 21. Dividend 79 22. Current/Non-Current Liabilities - Provisions 79 23. Current/Non-Current Liabilities - Other 79 24. Changes in Equity 80 25. Commitments for Expenditure 81 26. Contingent Liabilities and Contingent Assets 82 27. Budget Review 82 28. Reconciliation of Cash Flows from Operating Activities to Net Cost of Services 83 29. Machinery of Government Change 84 30. Trust Funds 84 31. F isheries Management Act - Special F isheries Trust Funds 85 32. Administered Assets and Liabilities 87 33. Administered Revenues 87 34. Marine P arks Fund 88 35. F inancial Instruments 88 36. Joint V enture Agreements 90 FINANCIAL STATEMENTS

New South Wales DEPARTMENT OF PRIMARY INDUSTRIES

Level 6, 201 Elizabeth Street SYDNEY NSW 2000 PO Box K220 Haymarket NSW 1240 Telephone (02) 8289 3999 Facsimile (02) 9283 7201 Website www.dpi.nsw.gov.au

48 NSW Department of Primary Industries ANNUAL REPORT 2004–05 FINANCIAL STATEMENTS

INDEPENDENT AUDIT REPORT Department of Primary Industries

To Members of the New South Wales Parliament Audit Opinion In my opinion the financial report of the Department of Primary Industries: a) presents fairly the Department of Primary Industries and the consolidated entity's financial position as at 30 June 2005 and their financial performance and cash flows for the year ended on that date, in accordance with applicable Accounting Standards and other mandatory professional reporting requirements in Australia, and b) complies with section 45E of the Public Finance and Audit Act 1983 (the Act). My opinion should be read in conjunction with the rest of this report. The Director-General’s Role The financial report is the responsibility of the Director-General of the Department of Primary Industries. It consists of the statements of financial position, the statements of financial performance, the statements of cash flows, the program statement – expenses and revenues, the summary of compliance with financial directives and the accompanying notes for the Department of Primary Industries and the consolidated entity. The consolidated entity comprises the Department of Primary Industries and the entities controlled at the year's end or during the financial year. The Auditor’s Role and the Audit Scope As required by the Act, I carried out an independent audit to enable me to express an opinion on the financial report. My audit provides reasonable assurance to members of the New South Wales Parliament that the financial report is free of material misstatement. • My audit accorded with Australian Auditing and Assurance Standards and statutory requirements, and I: • evaluated the accounting policies and significant accounting estimates used by the Director-General in preparing the financial report, and • examined a sample of the evidence that supports the amounts and other disclosures in the financial report. An audit does not guarantee that every amount and disclosure in the financial report is error free. The terms ‘reasonable assurance’ and ‘material’ recognise that an audit does not examine all evidence and transactions. However, the audit procedures used should identify errors or omissions significant enough to adversely affect decisions made by users of the financial report or indicate that the Director-General had not fulfilled his reporting obligations. My opinion does not provide assurance: • about the future viability of the Department of Primary Industries or its controlled entities, • that they have carried out their activities effectively, efficiently and economically, • about the effectiveness of their internal controls, or • on the assumptions used in formulating budget figures disclosed in the financial report. Audit Independence The Audit Office complies with all applicable independence requirements of Australian professional ethical pronouncements. The Act further promotes independence by: • providing that only Parliament, and not the executive government, can remove an Auditor-General, and • mandating the Auditor-General as auditor of public sector agencies but precluding the provision of non-audit services, thus ensuring the Auditor-General and the Audit Office are not compromised in their role by the possibility of losing clients or income.

R Hegarty FCA Director, Financial Audit Services

SYDNEY 30 November 2005

NSW Department of Primary Industries ANNUAL REPORT 2004–05 49 FINANCIAL STATEMENTS

STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2005

Notes Consolidated Parent Parent Actual Actual Budget 2005 2005 2005 $'000 $'000 $'000

Expenses Operating expenses Employee related 2(a) 307 343 241 427 216 529 Other operating expenses 2(b) 165 659 122 573 84 708 Maintenance 7 046 7 046 7 643 Depreciation 2(c) 28 191 18 043 15 113 Grants & subsidies 2(d) 47 738 57 295 37 077 Borrowing Costs 2(e) 1 390 1 390 1 556 Other expenses 2(f) 10 915 10 915 7 783 Contract Harvest and Haulage 76 893 0 0 Decrement in market value of SGARA 39 992 0 0

Total Expenses 685 167 458 689 370 409 Less:

Retained Revenue Sale of goods and services 3(a) 1d (ii) 112 508 23 092 29 771 Investment income 3(b) 135 983 4 441 2 263 Retained Fees 3(c) 1d(iv) 10 032 10 032 8 600 Grants and contributions 3(d) 47 017 37 033 38 239 Other revenue 3(e) 11 006 11 006 150

Total Retained Revenue 316 546 85 604 79 023

Gain / (loss) on disposal of non-current assets 4 4 359 1 167 200

Net Cost of Services 28 364 262 371 918 291 186

Government Contributions Recurrent appropriation 8 300 310 300 310 247 413 Capital appropriation 8 22 911 22 911 22 963 Acceptance by the Crown Entity of employee benefits and other liabilities 9 32 936 32 936 6 134

Total Government Contributions 356 157 356 157 276 510

SURPLUS / (DEFICIT) FOR THE YEAR FROM ORDINARY ACTIVITIES BEFORE INCOME TAX EXPENSE (8 105) (15 761) (14 676)

Income tax equivalent expense 6 (4 753) 0 0 SURPLUS / (DEFICIT) FOR THE YEAR FROM ORDINARY ACTIVITIES AFTER INCOME TAX EXPENSE (12 858) (15 761) (14 676)

TOTAL REVENUES EXPENSES AND VALUATION ADJUSTMENTS 12 097 12 097 0 RECOGNISED DIRECTLY IN EQUITY

TOTAL CHANGES IN EQUITY OTHER THAN THOSE RESULTING FROM TRANSACTIONS WITH OWNERS AS OWNERS 24 (761) (3 664) (14 676)

The accompanying notes form part of these statements

50 NSW Department of Primary Industries ANNUAL REPORT 2004–05 FINANCIAL STATEMENTS

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2005

Notes Consolidated Parent Parent Actual Actual Budget 2005 2005 2005 $'000 $'000 $'000

ASSETS Current Assets Cash 11 75 799 69 682 60 092 Receivables 12 64 166 13 050 10 207 Inventories 13 14 087 7 136 7 388 Other Financial Assets 14 2 260 0 3 038 Other 15 11 489 1 777 2 994

Total Current Assets 167 801 91 645 83 719

Non-Current Assets Other financial assets 14 798 798 (5 455)

Property Plant and Equipment - Land and Buildings 16 990 092 218 067 208 749 - Plant and Equipment 16 87 370 52 443 61 039 - Infrastructure Systems 16 120 917 27 756 31 602 - Digital Imaging System 16 2 359 2 359 0 - Property Plant and Equipment in the course of construction 16 6 068 0 0

Total Property Plant and Equipment 1 206 806 300 625 301 390

Self Generating & Regenerating Assets 17 1 594 934 0 0 Deferred income tax asset 12 908 0 0

Total Non-Current Assets 2 815 446 301 423 295 935

Total Assets 2 983 247 393 068 379 654

LIABILITIES

Current Liabilities Payables 19 44 101 12 033 11 548 Interest Bearing Liabilities 20 34 980 5 615 5 153 Provisions 22 32 389 24 914 21 155 Other 23 2 334 2 334 3 166 Dividend Provided 21 27 254 0 0 Current tax liability 855 0 0

Total Current Liabilities 141 913 44 896 41 022

Non-Current Liabilities Interest Bearing Liabilities 20 138 810 30 113 13 345 Provisions 22 30 741 5 276 5 163 Deferred income tax liability 256 081 0 0

Total Non-Current Liabilities 425 632 35 389 18 508

Total Liabilities 567 545 80 285 59 530

Net Assets 2 415 702 312 783 320 124

EQUITY Capital 24 421 706 0 0 Reserves 24 856 840 138 388 127 191 Accumulated funds 24 1 137 156 174 395 192 933

Total Equity 2 415 702 312 783 320 124 The accompanying notes form part of these statements NSW Department of Primary Industries ANNUAL REPORT 2004–05 51 FINANCIAL STATEMENTS

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2005

Notes Consolidated Parent Parent Actual Actual Budget 2005 2005 2005 $'000 $'000 $'000

CASH FLOWS FROM OPERATING ACTIVITIES Payments Employee related (291 678) (212 873) (201 564) Grants and subsidies (47 738) (57 295) (37 077) Borrowing Costs (1 390) (1 390) (1 196) Other (295 520) (153 337) (111 031) Income Taxes Paid (6 249) 0 0

Total Payments (642 575) (424 895) (350 868)

Receipts Sale of goods and services 303 740 36 082 29 731 Retained Fees 10 032 10 032 0 Interest received 4 279 3 879 2 011 Other 34 637 47 789 57 596

Total Receipts 352 688 97 782 89 338

Cash Flows from Government Recurrent appropriation 301 994 301 994 247 413 Capital appropriation 22 911 22 911 22 963 Cash reimbursement from the Crown Entity 6 360 6 360 6 134

Net Cash Flows From Government 331 265 331 265 276 510

NET CASH FLOWS FROM OPERATING ACTIVITIES 28 41 378 4 152 14 980

CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of Land and Buildings Plant and Equipment and Infrastructure Systems 5 790 3 321 300 Advance repayments received 0 0 3 230 Purchases of Land and Buildings Plant and Equipment and Infrastructure Systems (35 114) (23 146) (26 543) Payments for SGARAs (plantn estab) (19 563) 0 0 Capitalised Interest on Borrowings (7 232) 0 0

NET CASH FLOWS FROM INVESTINGACTIVITIES (56 119) (19 825) (23 013)

CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings and advances 43 789 14 000 0 Repayment of borrowings and advances (13 804) (804) (4 034) Dividends paid (13 096) 0 0

NET CASH FLOWS FROM FINANCING ACTIVITIES 16 889 13 196 (4 034)

NET INCREASE/(DECREASE) IN CASH 2 148 (2 477) (12 067) Opening cash and cash equivalents 75 911 72 159 67 085

CLOSING CASH AND CASH EQUIVALENTS 11 78 059 69 682 55 018 The accompanying notes form part of these statements

52 NSW Department of Primary Industries ANNUAL REPORT 2004–05 FINANCIAL STATEMENTS

SUPPLEMENTARY FINANCIAL STATEMENT PROGRAM STATEMENT - EXPENSES AND REVENUES FOR THE YEAR ENDED 30 JUNE 2005

Agriculture Fisheries Mineral Not Parent Consolidated AGENCY'S EXPENSES & REVENUES Industries * Industries * Industries * Attributable Actual Actual 2005 2005 2005 2005 2005 2005 $'000 $'000 $'000 $'000 $'000 $'000

Expenses Operating expenses Employee related 171 613 36 998 32 816 0 241 427 241 427 Other operating expenses 83 332 17 989 21 252 0 122 573 122 573 Maintenance 5 626 705 715 0 7 046 7 046 Depreciation and amortisation 14 314 2 182 1 547 0 18 043 18 043 Borrowing Costs 0 1 390 0 0 1 390 1 390 Grants & subsidies 56 829 431 35 0 57 295 57 295 Other expenses 8 318 896 1 701 0 10 915 10 915 Total Expenses 340 032 60 591 58 066 0 458 689 458 689

Retained Revenue Sale of goods and services 16 654 5 643 795 0 23 092 23 092 Investment income 3 329 651 461 0 4 441 4 441 Retained Fees 0 10 032 0 0 10 032 10 032 Grants and contributions 31 555 5 460 18 0 37 033 37 033 Other revenue 9 924 255 827 0 11 006 11 006 Total Retained Revenue 61 462 22 041 2 101 0 85 604 85 604 Gain / (loss) on disposal of non- 244 926 (3) 0 1 167 1 167 current assets Net Cost of Services 278 326 37 624 55 968 0 371 918 371 918 Government contributions ** 356 157 356 157 356 157

NET EXPENDITURE/(REVENUE) 278 326 37 624 55 968 (356 157) 15 761 15 761 FOR THE YEAR

ADMINISTERED REVENUES Transfer receipts Consolidated Fund - Taxes fees and fines 3 870 3 870 3 870 - Other 397 394 397 394 397 394 Total Administered Revenues 401 264 401 264 401 264

* The name and purpose of each program is summarised in Note 10. * *Appropriations are made on an agency basis and not to individual programs. Consequently government contributions must be included in the "Not Attributable" column.

Forests NSW do not have the mechanism to disclose their expenses and revenues in the form above.

NSW Department of Primary Industries ANNUAL REPORT 2004–05 53 FINANCIAL STATEMENTS

SUPPLEMENTARY FINANCIAL STATEMENT PARENT – SUMM ARY OF COMPLIANCE WITH FINANCIAL DIRECTIVES

2005 RECURRENT EXPENDITURE/ CAPITAL EXPENDITURE/ APPROPRIATION NET CLAIM ON APPROPRIATION NET CLAIM ON CONSOLIDATED CONSOLIDATED FUND FUND $'000 $'000 $'000 $'000

ORIGINAL BUDGET APPROPRIATION/EXPENDITURE Appropriation Act 247 413 248 089 22 963 22 911

247 413 248 089 22 963 22 911

OTHER APPROPRIATIONS / EXPENDITURE Treasurer's Advance 4 060 4 060 0 0

Section 22 - expenditure for certain w orks and services 0 0 0 0

Section 27 - transfers from another agency 55 612 48 161 0 0

Total A ppropria tion / Expenditure / Net Claim on Consolida t ed Fund 307 085 300 310 22 963 22 911 A moun t drawn down against A ppropria tion 302 644 22 911 Liability t o Consolida t ed Fund 2 334 0

T he Summary of C ompliance is based on the assumption that C onsolidat ed Fund moneys are spent first ( except where otherwise identified or prescribed). T he Liability t o C onsolidat ed Fund represents the difference betw een the 'Amount Dra wn against Appropriation' and the 'Total Expenditure / Net Claim on C onsolidat ed Fund". For an explanation of variances t o Budget, y ou are referred t o Not e 27.

54 NSW Department of Primary Industries ANNUAL REPORT 2004–05 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Reporting Entity for specific uses b y the g rant or or donor are nev ertheless controlled b y the T he Department of Primary Industries (‘the Department’) was established Department. b y the Public Sect or Emplo yment & Management (Department of Primary A s this is the first y ear of operation of the Agency no comparativ e prior y ear Industries) Order 2004 made on 23rd June 2004. T he Department comprises information is a vailable. the former Department of Ag riculture the former Department of Mineral Resources the former NSW Fisheries and Forests NSW. T he amounts in the Financial Stat ements ha v e been rounded off t o the nearest thousand dollars unless specifically stat ed t o be otherwise. For the purposes of financial reporting budget sect or activities performed within the Department (being all activities orig inating from the Department (c) Administ er ed Activities of Primary Industries and Forests NSW) comprise a reporting entity and are T he Agency administ ers but does not control certain activities on behalf referred t o in these C onsolidat ed Stat ements and accompanying not es as the of the Cro wn Entity. It is accountable for the transactions relating t o those ‘Agency’. administ ered activities but does not ha v e the discretion for example t o deplo y the resources for the achiev ement of the Agency’s o wn objectiv es. Forests NSW is the trading name for the Forestry C ommission of NSW a statut ory body creat ed under the For estry Act 1916 which has continued t o Transactions and balances relating t o the administ ered activities are not be list ed under Schedule 2 of the Public Finance and Audit Act 1983 (the Act) recog nised as the Agency’s rev enues expenses assets and liabilities but for financial reporting and management purposes. Forests NSW operat es as a are disclosed in the accompanying schedules as ‘Administ ered A ssets and non-budget sect or Public Trading Ent erprise and under requirements of the Liabilities’ and ‘Administ ered Rev enues’ in Not es 32 and 33. Act and National C ompetition Guidelines for go v ernment o wned businesses T he accrual basis of accounting and all applicable accounting standards ha v e is required t o report separat ely from other areas of Go v ernment. Forests been adopt ed for the reporting of the administ ered activities. NSW is responsible for making use of its emplo y ees and resources at its o wn cost and must meet all expenses taxes duties and Go v ernment dividends (d) Reven ue Recognition from rev enues earned from the business. Forests NSW operations are not Paren t economically dependent on the Department. Forests NSW is also a reporting entity. Rev enue is recog nised when the Agency has control of the good or right t o receiv e it is probable that the economic benefits will flo w t o the Agency Accordingly separat e financial stat ements ha v e been prepared for the Agency and the amount of rev enue can be measured reliably. Additional comments and Forests NSW. In the case of the Agency its reports are in accord with the regarding the accounting policies for the recog nition of rev enue are discussed Financial Reporting C ode for Budget Dependent General Go v ernment Sect or belo w. Agencies (the C ode). Forests NSW accounts are prepared more in line with privat e sect or reports reflecting Forests commercial self-funding basis of (i) Appr opriations and C ontributions fr om Other Bodies operation. Parliamentary appropriations and contributions from other bodies (including g rants and donations) are generally recog nised T he reporting entity is consolidat ed as part of the NSW Total Stat e Sect or as rev enues when the Department obtains control o v er the Accounts. assets comprising the appropriations/contributions. C ontrol o v er With regard t o the follo wing Not es where reference is made t o ‘Agency’ appropriations and contributions is normally obtained upon the it refers t o the t otal activities of the Department of Primary Industries. A receipt of cash. reference t o the ‘Parent’ relat es t o activities of the former budget sect or An exception t o the abo v e is when appropriations are unspent Departments of Ag riculture Fisheries and Mineral Resources and a reference at y ear end. In this case the authority t o spend the money t o ‘Forests NSW’ relat es t o the former Forests NSW. lapses and generally the unspent amount must be repaid t o the (b) Basis of Accounting C onsolidat ed Fund in the follo wing financial y ear. A s a result unspent T he financial stat ements for the Agency comprise a general purpose financial appropriations are account ed for as liabilities rather than rev enue. report which has been prepared on an accruals basis and in accordance with: T he liability is disclosed in Not e 23 as part of ‘C urrent/Non-current • applicable Australian Accounting Standards; Liabilities – Other’. T he amount will be repaid and the liability will be extinguished next financial y ear. Any liability in respect of transfer • other authoritativ e pronouncements of the Australian Accounting pa yments is disclosed in Not e 32 ‘Administ ered A ssets and Liabilities’. Standards Board ( AASB); • Urgent Issues Group (UIG) C onsensus Views; (ii) Sale of Goods and Services Rev enue from the sale of goods and services comprises rev enue • the requirements of the Public Finance and Audit Act 1983 and from the pro vision of products and services i.e. user charges. User Regulations; and charges are recog nised as rev enue when the Agency obtains control • the Financial Reporting Directions published in the Financial of the assets that result from them and the amount of rev enue can be Reporting C ode for Budget Dependent General Go v ernment Sect or measured reliably. Agencies or issued b y the Treasurer under section 9(2)(n) of the Act. (iii) Inv estment Income T he report of the Agency comprise all activities undertaken within the Int erest rev enue is recog nised as it accrues. Dividend rev enue Department including all entities under its control (refer (i) belo w). T he is recog nised when the agency’s right t o receiv e pa yment is Agency administ ers activities under the Ag ricultural Scientific C ollections established. Trust Act and the Ovine Johnes Disease Eradication leg islation. T he Agency also encompasses funds which while containing assets that are restrict ed

NSW Department of Primary Industries ANNUAL REPORT 2004–05 55 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

(iv) Retained Fees Forests NSW Retained fees held by the Agency are recognised as revenues when (i) Annual leave and only when the Agency obtains control of the asset that results Liability for Annual Leave is recognised and measured in respect of from them and the amount of revenue can be measured reliably. employees’ services up to the reporting date at nominal amounts based on the amounts expected to be paid when the liabilities are Forests NSW settled. Revenues are recognised at fair value of the consideration received net of the amount of goods and services tax (GST) payable to the taxation authority. (ii) Long Service Leave A liability for Long Service Leave is recognised and is measured as the (i) Sale of Timber and Related Activities present value of expected future payments to be made in respect of Revenue from the sale of timber and related activities is recognised services provided by employees up to the reporting date. (net of returns discounts and allowances) when control of the goods passes to the customer. Consideration is given to expected future wage and salary levels experience of employee departures and periods of service. Expected (ii) Grants future payments are discounted using interest rates on notional Grants of a non-reciprocal nature are recognised on receipt of government guaranteed securities with terms to maturity that match funds. Grants of a reciprocal nature are recognised as a liability and as closely as possible the estimated future cash outflows. recognised as revenue in proportion to the stage of completion of Long Service Leave liability is calculated triennially by the the project for which the grant funds were provided. Government Actuary with the last assessment completed at the 30th (e) Employee Benefits and other provisions June 2003. Parent (iii) Sick Leave i) Salaries and Wages Annual Leave Sick Leave and On-Costs Sick leave is non-vesting and is expensed as incurred. In line with past results sick leave taken in future periods is expected to be well below Liabilities for salaries and wages (including non-monetary benefits) entitlements in those periods. and annual leave are recognised and measured in respect of employees services up to the reporting date at nominal amounts (iv) Superannuation based on the amounts expected to be paid when the liabilities are Calculation of the total liability for superannuation is based on settled. actuarial advice provided by Pillar Administration. Unused non-vesting sick leave does not give rise to a liability as it is The superannuation liability in the Statement of Financial not considered probable that sick leave taken in the future will be Performance is the difference between the gross liabilities and greater than the benefits accrued in the future. the stake in the funds at reporting date in respect of Forests NSW’ The outstanding amounts of payroll tax workers’ compensation employees. insurance premiums and fringe benefits tax which are consequential (v) Workers Compensation Insurance to employment are recognised as liabilities and expenses where the Forests NSW is a licensed self insurer under the provisions of the employee benefits to which they relate have been recognised. Workers Compensation Act 1987. In accordance with regulations that ii) Long Service Leave and Superannuation govern the operations of Workers Compensation an independent The Agency’s liabilities for long service leave and superannuation are actuary has determined the value of the outstanding claims liability assumed by the Crown Entity. The agency accounts for the liability as at 30th June 2004. In addition separate insurance cover is held with as having been extinguished resulting in the amount assumed private insurance companies for excess total incident and total claims being shown as part of the non-monetary revenue item described costs. as ‘Acceptance by the Crown Entity of employee benefits and other (f) Borrowing Costs liabilities’. Agency Long service leave is measured using the present value basis of measurement. The current portion of long service leave is that Borrowing costs are recognised as expenses in the period in which they considered to be taken within twelve months of 30 June. Treasury has are incurred (except where they are included in the costs of qualifying advised that ten percent of total long service leave should fall into assets). this category. Forests NSW The superannuation expense for the financial year is determined Borrowing costs include: by using the formulae specified in the Treasurer’s Directions. The expense for certain superannuation schemes (i.e. Basic Benefit and • interest on bank overdrafts and short-term and long-term First State Super) is calculated as a percentage of the employees’ borrowings salary. For other superannuation schemes (i.e. State Superannuation • amortisation of discounts or premiums relating to borrowings Scheme and State Authorities Superannuation Scheme) the expense is calculated as a multiple of the employees’ superannuation Borrowing costs are capitalised as these funds have been utilised for the contributions. acquisition of land and for the establishment and development of new plantations which by their nature take a substantial period of time to become commercially productive.

56 NSW Department of Primary Industries ANNUAL REPORT 2004–05 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

(g) Insurance between the fair value valuation methodology and the previous valuation methodology adopted by the NSW public sector. Parent Where available fair value is determined having regard to the highest and The Parent’s insurance activities are conducted through the NSW Treasury best use of the asset on the basis of current market selling prices for the Managed Fund Scheme of self insurance for Government agencies. The same or similar assets. Where market selling price is not available the asset’s expense (premium) is determined by the Fund Manager based on past fair value is measured as its market buying price ie the replacement cost of experience. the asset’s remaining future economic benefits. The Agency is a not for profit (h) Taxation entity with no cash generating operations. Agency Each class of physical non-current assets is revalued every five years and with sufficient regularity to ensure that the carrying amount of each asset in Revenues expenses and assets are recognised net of the amount of GST the class does not differ materially from its fair value at reporting date. The except where: last revaluation of Land and Buildings was performed by the State Valuation • the amount of GST incurred by the agency as a purchaser that is not Office in May 2004. The Fisheries portion was last valued during 2005 by the recoverable from the Australian Taxation Office is recognised as part Department of Commerce. of the cost of acquisition of an asset or as part of an item of expense. Non-specialised assets with short useful lives are measured at depreciated • receivables and payables are stated with the amount of GST included. historical cost as a surrogate for fair value. Forests NSW When revaluing non-current assets by reference to current prices for assets newer than those being revalued to reflect the present condition of the assets Income Tax (Tax equivalents regime) the gross amount and the related accumulated depreciation is separately As of 1 July 2001 Forests NSW is subject to the National Tax Equivalents restated. Regime (NTER) which requires Government Trading Enterprises to be subject Any balances of accumulated depreciation existing at the revaluation date in to the same taxes including income tax and goods and services tax as private respect of those assets are credited to the asset accounts to which they relate. sector organisations. Prior to this date Forests NSW were subject to the state The net asset accounts are then increased or decreased by the revaluation based Tax Equivalents Regime. increments or decrements. Tax effect accounting procedures are followed whereby the income tax Revaluation increments are credited directly to the asset revaluation reserve expense in the statement of financial performance is matched with the except that to the extent that an increment reverses a revaluation decrement accounting profit after allowing for permanent differences. The future tax in respect of that class of asset previously recognised as an expense in the benefit relating to tax losses is carried forward as an asset as this benefit has surplus/deficit the increment is recognised immediately as revenue in the largely arisen from the deductibility of plantation establishment activity. surplus/deficit. Whilst recognising the significant period involved (to maturity of these plantation assets) as these activities constitute Forests NSW core business Revaluation decrements are recognised immediately as expenses in the there is high likelihood the benefit will be fully realised in future periods. surplus/deficit except that to the extent that a credit balance exists in the asset revaluation reserve in respect of the same class of assets they are Income tax on cumulative timing differences is set aside to the deferred debited directly to the asset revaluation reserve. income tax or the future income tax benefit accounts at the rates which are expected to apply when those timing differences reverse. Revaluation increments and decrements are offset against one another within a class of non-current assets but not otherwise. (i) Acquisition of assets Where an asset that has previously been revalued is disposed of any balance Parent remaining in the asset revaluation reserve in respect of that asset is transferred The cost method of accounting is used for the initial recording of all to accumulated funds. acquisitions of assets controlled by the Agency. Cost is determined as the fair value of the assets given as consideration plus the costs incidental to the Forests NSW acquisition. (i) Property Plant & Equipment Assets acquired at no cost or for nominal consideration are initially Land recognised as assets and revenues at their fair value at the date of acquisition. All land being Crown Land and Forests NSW owned land under forests and Fair value means the amount for which an asset could be exchanged plantations and under administrative buildings offices mechanical workshops between a knowledgeable willing buyer and a knowledgeable willing seller and other non-forest installations were revalued by the State Valuation Office in an arm’s length transaction. (SVO) on 30 June 2004. The carrying value as at 30 June 2005 approximates to the fair value. Fair value is based on current market buying price representing (j) Plant and Equipment value in use. The SVO supported this basis of valuation by recognising that Parent Forests NSW land was held for continued use and would be replaced if Forests Plant and equipment costing $5 000 and above individually are capitalised. NSW was deprived of them. (k) Revaluation of Physical Non-Current Assets The valuation recognised areas that were currently utilised for timber producing purposes and other areas such as reserves and exclusion zones Parent where no commercial activities are carried out by Forests NSW. Physical non-current assets are valued in accordance with the “Guidelines Independent valuations will be performed at least triennially for Land or for the Valuation of Physical Non-Current Assets at Fair Value” (TPP 03-02). earlier if significant market movements are detected with purchases in the This policy adopts fair value in accordance with AASB 1041 from financial intervening periods taken to account at cost. years beginning on or after 1 July 2002. There is no substantive difference

NSW Department of Primary Industries ANNUAL REPORT 2004–05 57 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

Roads & Bridges The net change in market value (resulting from price and volume Major Roads and Bridges have been independently revalued by the SVO movements) from the beginning to the end of the year is recognised as at 30 June 2003 on the basis of written down replacement cost which revenue or an expense in the Statement of Financial Performance. approximates fair value. The carrying value as at 30 June 2005 approximates to Costs capitalised in relation to plantations comprise the direct costs of the fair value. establishment and development attributable to a new plantation of specific Costs of building or significantly upgrading primary access roads (Class A) age class and species and indirect costs attributable to the growing stock and secondary access roads (Class B) are capitalised as incurred. Maintenance establishment activity. These indirect costs include fire prevention and costs on these higher classification roads are expensed as incurred. All other suppression road maintenance forest management and planning research costs of maintaining and developing the rest of the roading infrastructure are and administration and management. expensed as incurred. Other ongoing maintenance and management costs in relation to Independent valuations will be performed at least triennially for Roads and commercial pine plantations are expensed as incurred with the exception of Bridges with purchases in the intervening periods taken to account at cost. major post thinning fertilising and pruning programs. Where these programs are designed specifically to improve stand quality the costs are capitalised. Motor Vehicles and Mobile Plant Motor vehicles and Mobile Plant were revalued at 30 June 2003 by Hardwood Plantation Timber management. The carrying value as at 30 June 2005 approximates to the fair These plantations are less than 15 years of age and have yet to undergo a value. Revaluations will be performed at least triennially for motor vehicles or commercial operation. As market prices cannot be readily determined for earlier if significant market movements are detected with purchases in the these plantations and as the quality of inventory and growth data has not intervening periods taken to account at cost. developed to a suitable standard to support a detailed growth model for these plantations at this time this resource is valued on the basis of historical Other Assets costs incurred in their establishment. As Hardwood plantations undergo Radio Equipment was revalued at 30 June 2003 by management. The carrying a commercial operation or reach age 15 Forests NSW intends to move to value as at 30 June 2005 approximates to the fair value. Aircraft were revalued market value for this resource. Land under these plantations and integral by Melream Pty Ltd at 30 June 2003. Other assets are stated at written down infrastructures have been independently valued and disclosed separately in value as at 30 June 2004 which approximates fair value. these accounts. (ii) Self generating and Regenerating Assets Native Forest Timber Softwood Plantation Timber The value of the Native Forest timber resource currently available for The value of the Softwood Pine Plantation Growing Stock has been assessed harvesting has been assessed utilising a Net Market Value model which is utilising a Net Market Value model which is based upon standing volumes based upon standing volumes and current prices less direct costs of disposing and current prices less the direct costs of disposing of the timber. of the timber. The present valuation model differentiates between the following Standing volume information has been sourced from the most recently components of the plantation: Non commercial plantations are defined as available resource data. Only the standing volume of native forests that are those plantations which are less than 15 years of age and which have not available in a single harvest cycle is valued. Harvesting cycles vary between yet undergone a commercial operation. As market prices cannot be readily native forest types with the a cycle of 25-30 years for native forest and 35-40 determined for these plantations they are valued on the basis of historical years for cypress. costs incurred in their establishment. Commercial plantations are defined as Where possible standing volume information has been grown forward to 30 those plantations between 12 and 15 years of age which have experienced June 2005 and reduced by volumes sold since the inventory date. Forests a commercial operation and all plantations 15 years of age or greater. A covered by the South East and South Coast Regional Forest Agreements commercial operation is defined as a thinning or clear felling which produces (RFA’s) have used the RFA data as the basis for valuation. marketable quantities of forest products for sale. Standing volume is calculated based on data obtained from sample inventory Volume increments are determined both by periodic re-measurement of plots. Inventory data for forests within the Upper and Lower North East RFA’s samples of plantations and by modelling growth from the date of most have been updated in the current financial year. As part of a comprehensive recent measurement to the valuation date. The modelled growth estimates improvement of inventory procedures a new sampling regime has been are generally checked to physical data at five yearly intervals. The market introduced and a substantial number of new inventory plots have been valuation is prepared by qualified foresters employed by Forests NSW using created to replace those lost to harvesting. Implementation of this regime has techniques/methods published in scientific journals and accepted by the resulted in a significant shift in available sawlog volumes between species forestry industry. an increase in volumes of saleable species and a reduction in available The current product proportionment models used to determine the pulpwood. Forests NSW proposes to apply the new inventorying regime to component product volumes on which the valuations are based were first other RFA areas. At this stage it is not known if similar changes might result in implemented in 2002. To better reflect the effects of recent growth conditions inventory for those other areas. and the usage of more genetically advanced seedling stock in more recent A new approach has also been developed for estimating harvestable area. years Forests NSW has recently commenced processes to test and validate the New biometric equations are being developed for purposes of measurement modelling projections to recent actual harvested volumes of various timber estimating growth estimating standing volume and for estimating product products. Until these validation processes are completed there may be some yields. In some cases interim models have been developed that will only variation between reported modelled volumes and actual standing volumes. apply to the current valuation. The modelling process is ongoing and the Recalibration of the inventory models will then be made to ensure models new inventory regime has been operating since 1 January 2004 and it will be closely align to current actual harvest records. Should any amendment to the continually reviewed and improved. The current estimate of volume is the valuation become necessary as a result of this testing any resulting financial best estimate available based on a sampling and modelling regime that was effects will be incorporated into future valuations.

58 NSW Department of Primary Industries ANNUAL REPORT 2004–05 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements designed to improve the previous methodology used in 1998 for Regional (l) Assets Not Able to be Reliably Measured Forestry Agreement assessment. In these localities the updated inventory and resource modelling tools have been used to calculate volume. Parent The Agency holds certain assets that have not been recognised in the The NSW Government announced in May 2005 that 348 000 hectares of Statement of Financial Position because the Department is unable to measure woodlands between Dubbo and the Queensland border will be conserved reliably the value for the assets. These assets are the insect and mite collection under new forest and reserve categories including permanent conservation the plant pathology herbarium a collection of mineral core specimens zones. The effect on commercially harvestable timber volumes from these obtained through drilling over a considerable period of time and various areas is still being calculated in detail. As the Government decision has still not Marine Protected Areas. been gazetted Forests NSW reports for the 30 June 2005 continue to include values of both affected land areas and commercial timber on those land areas. Some of these assets were originally acquired in 1890 with the appointment Upon gazettal of the Government decision (expected by the end of calendar of the first scientific officers in the Department. Since that time the assets 2005) values of land areas to be transferred to other agencies and any have been augmented continuously through the addition of specimens reduction to the value of timber inventories in these areas will be recognised representing records of insects mites fungi bacteria viruses nematodes and in Forests NSW financial reports. Comprehensive Resource Assessments minerals samples. (CRA’s) completed in prior years for the Brigalow Belt South and Nandewar Each addition of a specimen to the collections also adds a data label bearing bioregions permit the use of similar resource volumation methodologies as information on the identity location date of collection name of the collector those used in the RFA processes. It is assumed that yields are sustainable for and biological information pertaining to that specimen. Each specimen forests which are not covered by an RFA or a CRA. In this case no adjustment provides data for the trade quarantine research and diagnostic functions. was made for volumes harvested. The identity information has been added progressively by specialist scientists In determining the standing volume the gross area of native forests is and geologists many with world authority status over many years and much reduced by the extent where logging is excluded in certain areas. A net of the information is now irreplaceable because the original source is no harvest area modifier is then applied to reflect the impact of other logging longer available. Therefore due to the irreplaceable nature of these collections exclusions prescribed by licences that are not area specific. A further strike valuation would be extremely difficult. rate reduction factor is used to reduce the net harvest area for unmapped In addition to this collection information the collections include many unique flora and fauna exclusions. After adjusting the gross standing volume for reference specimens known as primary type specimens. These are used by the above exclusions only 30% of the standing volume is valued reflecting taxonomists as the only valid reference point for individual scientific names restrictions on the intensity of harvesting allowed for a native forest resource. and are established by the taxonomist who originally names a species. The market value for products by species was sourced from current years The maintenance and preservation of these collections is estimated to cost actual price data adjusted for marketing and selling costs. $0.391m for 2004/2005. Forests NSW’ older hardwood plantation resource has presently been valued (m) Depreciation of Non-Current Physical Assets as native forest until the plantations are accredited. Forests NSW manages available native forest areas on a sustainable yield basis. Parent Sustainable yield means that the volume harvested will approximate over Depreciation is provided on a straight line basis for all depreciable assets so long-term harvest cycles annual forest growth of the harvestable native forest as to write off the depreciable amount of each asset as it is consumed over its areas. As a result all costs incurred in managing maintaining and developing useful life to the entity. the Native Forests timber resources are expensed as incurred on the basis that All material separately identifiable component assets are recognised and all relevant costs are incurred in maintaining a constant forest resource. depreciated over their shorter useful lives including those components that in effect represent major periodic maintenance. Carbon Credits During the 2004/05 year Forests NSW participated in an inaugural sale of Land is not a depreciable asset. New South Wales Greenhouse Abatement Credits recognising the potential The depreciation of buildings and infrastructure is calculated on a straight for carbon sequestration values to be derived from certain plantation areas. line basis. The depreciation rates were determined in consultation with Whilst Forests NSW is actively contributing to development of identification Treasury. Due to the nature and location of its activities a maximum useful life and management procedures associated with the emergence of the carbon of 40 years is appropriate. For practical purposes and a basis of accounting sequestration credit concept for financial accounting purposes at this stage treatment useful life is expressed in 10 year increments up to the maximum it is difficult to determine a reliable measurement of the potential carbon of 40 years. sequestration capacity of certain plantation areas. As a result Forests NSW accounts do not yet recognise a valuation for this potential SGARA asset. Equipment and vehicles are depreciated on a straight line basis over the remaining life to scrap value (where applicable) so as to write off the Cost of Goods Sold depreciable amount of each asset as it is consumed over its useful life to the Australian Accounting Standard AAS 1 Statement of Financial entity. Each class of asset has a default life which may be varied as a result of Performance requires the disclosure of the cost of goods sold. In management review either at acquisition or at any time during the asset life. accordance with AAS 35 Self Generating and Regenerating Assets the Default asset class lives are: cost of timber sold is deemed to be its net market value immediately Ocean Going Vessels 3 years after harvest determined by reference to the most likely market for the Computing Equipment 4 years harvested timber. Commercial Vehicles 5 years Specialised Equipment 7 years Motor Cycles 7 years

NSW Department of Primary Industries ANNUAL REPORT 2004–05 59 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

Passenger Vehicles 7 years (p) Receivables Business Equipment 7 years Laboratory Equipment 7 years Parent Agricultural Equipment 10 years Receivables are recognised and carried at cost based on the original invoice Furniture and Fittings 10 years amount less a provision for any uncollectable debts. An estimate of doubtful Digital Imaging System 10 years debts is made when collection of the full amount is no longer probable. Bad Intangibles 10 years debts are written off as incurred. Farm Vehicles 10 years Trailers and Caravans 10 years Forests NSW Marine Equipment 10 years The following table summarises the rates used to estimate the provision for Other Marine Craft 10 years Doubtful Debts. Engineering Equipment 15 years Age of Debts Percentage Forests NSW Between 31 – 60 days 2% Depreciation is charged on Property (other than land) and Plant & Equipment Between 61 – 90 days 10% at rates which provide for the original cost or valuation to be written down Over 90 days 50% over the expected useful life of the asset. Depreciation commences when the Insolvent/Administration 100% asset is brought into commercial operation. Type of Asset Depreciation Method Useful Life (q) Inventories and Work in Progress Property (other than Land) Straight Line 10 and 50 years Parent Aircraft Straight Line 10 years Inventories are stated at the lower of cost and net realisable value. The cost is Other Plant and Equipment Straight Line 3 to 50 years calculated using the weighted average cost or “first in first out” method. The Roads and Bridges exception to the above being livestock and fodder which has been valued - earthworks Straight Line 100 years at estimated net realisable value in order to value the natural increase more - paving (gravel) Straight Line 30 years accurately as at 30 June. - paving (bitumen) Straight Line 50 years Forests NSW (n) Maintenance and Repairs Inventories and Work in Progress (WIP) are stated at the lower of cost or net Parent realisable value. In the case of materials and parts cost comprises purchase The costs of maintenance are charged as expenses as incurred except where price and incidental expenses. The valuation of WIP and finished goods they relate to the replacement of a component of an asset in which case the is based on direct costs plus an appropriate proportion of production costs are capitalised and depreciated. overheads.

Forests NSW (r) Guarantee Fee Forests NSW’ policy is to maintain property plant and equipment in good Forests NSW order and condition requiring ongoing maintenance and repair. The costs of Forests NSW is required to pay an annual Government Guarantee Fee to the maintenance and repairs are generally charged as expenses when incurred NSW Treasury relative to the amount of loans at balance date based upon the except where they relate to the replacement of a significant component of an differential between an independently assessed stand alone credit rating for asset or a major upgrade of an asset in which cases the costs are capitalised Forests NSW and the NSW Government’s AAA rating. The actual fee payable is and depreciated. calculated using factors provided by the NSW Treasury each year. Other routine operating maintenance repair and minor renewal costs are also Due to the continuation of the Plantations Review study NSW Treasury expensed as incurred. deemed that an assessment was not required in the 2004/2005 year with reference remaining to the previous rating of BBB-. Forests NSW of New South (o) Leased Assets Wales has been assigned a qualified rating indication of ‘BBB-’ by Standard & Parent Poor’s Ratings Services. This is not necessarily the unqualified corporate credit A distinction is made between finance leases which effectively transfer from rating that would otherwise apply to Forests NSW of New South Wales. the lessor to the lessee substantially all the risks and benefits incidental to (s) Trust Funds ownership of the leased assets and operating leases under which the lessor effectively retains all such risks and benefits. Parent The Department does not hold any finance leases. It does however lease The Agency receives monies in a trustee capacity for various trusts as set out assets on an operating lease basis. Operating Lease payments are charged in Note 30. As the Department performs only a custodial role in respect of to the Statement of Financial Performance in the periods in which they are these monies and because the monies can not be used for the achievement incurred. The major operating lease is that relating to the Head Office Building of the Department’s own objectives these funds are not recognised in the located in Orange. financial statements. This building is covered by a 20 year lease with a nine year option. (t) Other Financial Assets Commitment values for this lease are outlined in Note 25(c). Parent Other financial assets are generally recognised at cost with the exception of gold exhibits which are measured at market value. The Department holds shares in cooperatives which enables produce from research stations

60 NSW Department of Primary Industries ANNUAL REPORT 2004–05 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements to be marketed through these cooperatives. These shares are classed as as the opening balances of the budgeted amounts are based on the non-marketable securities and are brought to account at cost and revalued audited financial statements. annually to reflect the issue of bonus shares. (aa) Buyout of commercial fishers For non-current ‘other financial assets’ revaluation increments and decrements are recognised in the same manner as physical non-current assets (see Parent paragraph (k). In September 2001 the Treasurer approved the provision of a loan of $20 For current ‘other financial assets’ revaluation increments and decrements are million to the Agency to fund the buyout of commercial fishers affected by recognised in the Statement of Financial Performance. the creation of recreational fishing areas in the State. This loan was drawn down on 30 April 2002 at an interest rate of 6.455%. The loan is to be repaid Forests NSW over seventeen years at an amount of $2 million per annum commencing in December 2002. Investments are valued at cost plus accumulated returns. Investment income is recognised in the period in which it is earned. Approximately $18.6 million of this loan was expended during the period 2001/02 to 2004/05 leaving a balance of $1.4m unexpended as at 30 June (u) Other Assets 2005. Parent In 2004/05 the Agency received a funding allocation of $0.724m to buyout Other assets including prepayments are recognised on a cost basis. commercial fishers in the Cape Byron Marine Park. An amount of $0.1m had been expended as at 30 June 2005. (v) Payables (ab) Fisheries Management Amendment Acts Parent These amounts represent liabilities for goods and services provided to the Parent Agency as well as other amounts. The Fisheries Management Amendment Act 1997 (‘the Act’) commenced on 1 July 1998. The objects of the Act are: to provide for the payment of an access (w) Interest Bearing Liabilities fee by recreational freshwater fishers; to establish special fisheries trust funds; Parent and to make other miscellaneous changes to the Fisheries Management All loans are valued at current capital value. Act 1994. The Fisheries Management Amendment Act 2000 also allowed for the introduction from 23 March 2001 of a general access fee payable by Forests NSW recreational fishers to use estuarine and marine waters. Loans are carried at their principal amounts which represent the present value The Act provides for the establishment of special fisheries trust funds which of future cash flows associated with servicing the debt. Interest is accrued are: Recreational Fishing (Freshwater) Trust Fund; Recreational Fishing over the period it becomes due and is recorded as part of other creditors. (Saltwater) Trust Fund; Commercial Fishing Trust Fund; Fish Conservation Trust Fund; Aquaculture Trust Fund; and Charter Fishing Trust Fund. (x) Financial Reporting by Segments Moneys in these trust funds are under the control of the Minister for Primary Forests NSW Industries and can be expended by the Minister only for the purposes Forests NSW operates solely in the forestry industry. The principal activities authorised by the Act. of Forests NSW are the management and development of pine plantations Under the Agency’s accounting structure all revenue paid into these special native hardwood plantations and broadleaf native and cypress pine forests fisheries trust funds and any expenditure therefrom is included in the and the sale of timber and related products to the timber and paper Department’s financial statements. NSW Treasury has agreed with this course processing industries. Forests NSW also provides various community services of action. The flow of funds into and out of these special fisheries trust funds the cost of which is primarily funded by the State Government. Forests NSW has been outlined in note 31. operates solely in one geographical area namely New South Wales. (ac) Transition to Australian Equivalents to International Financial (y) Dividend Reporting Standards Forests NSW Parent The amount of Dividend payable to the NSW Treasury was set as part of the 2004 Mini Budget at $32.544 million net of provision for income tax. The The Agency will apply the Australian equivalents to International Financial Dividend provided is payable to Treasury in the following financial year. Reporting Standards (AEIFRS) from 2005-2006. The strategy that is being implemented by the Agency to manage the (z) Budgeted Amounts transition to AEIFRS includes staff attendance at applicable seminars and Parent workshops. Access as much information as possible including Internet sites Budget amounts disclosed in the financial statements relate to the Parent such as NSW Treasury and the Australian Accounting Standards Board to assist only. They are drawn from the budgets as formulated at the beginning of with analysis of the impact of identified changes. the financial year and with any adjustments for the effects of additional To date a project team has been formed Exposure Drafts and Standards appropriations s 21A s 24 and / or s 26 of the Public Finance and Audit Act have been analysed seminars and workshops including those offered by 1983. NSW Treasury and CPA Australia have been attended by key departmental The budgeted amounts in the Statement of Financial Performance staff and the suitability of the Agency’s financial information management system to cope with AEIFRS has been investigated. The Internal Audit Bureau and the Statement of Cash Flows are generally based on the amounts was contracted to review the progress of the Project and areas where more disclosed in the NSW Budget Papers (as adjusted above). However in the investigation was required. Those areas have since been fully considered. Statement of Financial Position the amounts vary from the Budget Papers

NSW Department of Primary Industries ANNUAL REPORT 2004–05 61 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

The Agency has determined the key areas where changes in accounting The following phases that need to be undertaken have been identified: policies are likely to impact the financial report. Some of these impacts arise • Phase 1 – Diagnostic because AEIFRS requirements are different from existing AASB requirements. Other impacts are likely to arise from options in AEIFRS. To ensure consistency • Phase 2 – Design and Planning at the whole of government level NSW Treasury has advised agencies • Phase 3 – Solution Development of options it is likely to mandate for the NSW Public Sector. The impacts • Phase 4 – Implementation disclosed below reflect Treasury’s likely mandates (referred to as’indicative mandates’). • Phase 5 – Post Implementation Review The Agency anticipates immaterial impact on its equity profit/loss and on its • Phases 1 – 4 have been implemented to date with the development cash flows. The actual effects of the transition may differ from the estimated and implementation of new accounting to policies to recognise the figures below because of pending changes to the AEIFRS including the UIG introduction of the new standards. This was undertaken after Phase Interpretations and / or emerging accepted practice in their interpretation 1 Diagnostic had been completed which entailed a review of current and application. The Agency’s accounting policies may also be affected by accounting policies and the likely impact of IFRS conversion on the a proposed standard to harmonise accounting standards with Government business. Financial Statistics (GFS). However the impact is uncertain because it depends Forests NSW has determined the key areas where changes in accounting on when this standard is finalised and whether it can be adopted in 2005- policies are likely to impact the financial report. Some of these impacts 2006. arise because AEIFRS requirements are different from the existing AASB requirements (AGAAP). Other impacts are likely to arise from options in Forests NSW AEIFRS. To ensure consistency at the whole of government level NSW Treasury Forests NSW will apply the Australian equivalents to International Financial has advised agencies of options it is likely to mandate for the NSW Public Reporting Standards (AEIFRS) from 2005-06. Sector. The impacts disclosed below reflect Treasury’s likely mandates (referred The following strategy is being implemented to manage the transition to to as ‘indicative mandates’). AEIFRS. The transition to the new standards is being managed by allocating Shown below are management’s best estimates as at the date of preparing internal resources and engaging consultants to analyse the pending the 30 June 2005 financial report of the estimated financial impacts of AEIFRS standards and Urgent Issues Group Abstracts to identify key areas regarding on Forests NSW equity and profit/loss. Forests NSW does not anticipate any policies procedures systems and financial impacts affected by the transition. material impacts on its cash flows. The actual effects of the transition may As a result of this exercise the following steps to manage the transition to the differ from the estimated figures below because of pending changes to the new standards has been undertaken: AEIFRS including the UIG Interpretations and / or emerging accepted practice in their interpretation and application. Forests NSW accounting policies may also be affected by a proposed standard to harmonise accounting standards with Government Finance Statistics (GFS). However the impact is uncertain because it depends on when this standard is finalised and whether it can be adopted in 2005-06.

(a) Reconciliation of key aggregates Reconciliation of equity under existing Standards (AGAAP) to equity under AEIFRS:

30 June 1 July 2005** 2004* Notes $’000 $’000

Total Equity Under AGAAP 2 102 919 2 127 270 Adjustments to accumulated funds Effect of valuing individually rather than by class 1 10 676 10 676 Derecognition of Provisions [AASB 137] 2 1 383 1 234 Write back asset revaluation reserve for investment properties 3 3 574 3 393 Defined benefit superannuation adjustment for change in discount rate 4 (39 761) (20 855) Effect of discounting long-term annual leave 5 135 141 Tax effect adjustment 6 2650 10 834 Adjustments to other reserves Effect of valuing individually rather than by class 1 (10 676) (10 676) Write back asset revaluation reserve for investment properties 3 (3 393) (3 393) Tax effect adjustment 6 (211 315) (217 431) Total equity under AEIFRS 1 856 192 1 901 193 *= adjustments as at the date of transition **= cumulative adjustments as at the date of transition plus the year ended 30 June 2005

62 NSW Department of Primary Industries ANNUAL REPORT 2004–05 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

Reconciliation of surplus/(deficit) under AGAAP to surplus/(deficit) under AEIFRS:

Year ended 30 June 2005 Notes $’000

Surplus / (deficit) under AGAAP 2 903 Derecognition of provisions 2 149 Investment Properties 3 181 Defined benefit superannuation 4 (18 906) Long term annual leave 5 (5) Income tax expense 6 (8 184) Surplus/(deficit) under AEIFRS (23 862)

Notes to tables above 1. AASB 116 Property Plant and Equipment require for-profit entities to 5. AASB 119 requires present value measurement for all long-term recognise revaluation increments and decrements on an individual employee benefits. Current AGAAP provides that wages salaries asset basis rather than a class basis. This change will decrease annual leave and sick leave are measured at nominal value in all accumulated funds and increase the asset revaluation reserve. circumstances. Forests NSW has long-term annual leave benefits and 2. AASB 116 requires the cost and fair value of property plant and accordingly will measure these benefits at present value rather than equipment to be increased to include the estimated restoration nominal value thereby decreasing the employee benefits liability and costs where restoration provisions are recognised under AASB changing the quantum of the annual leave expense. 137 Provisions Contingent Liabilities and Contingent Assets. These 6. AASB Income Taxes uses a balance sheet approach which restoration costs must be depreciated and the unwinding of the requires the differences between the accounting and tax value restoration provision must be recognised as a finance expense. This of assets and liabilities to be recognised as deferred tax assets or treatment is not required under current AGAAP. liabilities. Current AGAAP uses an operating statement method 3. Under AASB 140 Investment Property and Treasury’s indicative that accounts for tax by adjusting accounting profit for temporary mandates investment property will be recognised at fair value. In and permanent differences to derive taxable income. The AASB contrast to their current treatment as property plant and equipment 112 approach alters the quantum and timing of tax assets and investment property recognised at fair value will not be depreciated liabilities recognised. In particular the balance sheet approach and changes in fair value will be recognised in the operating results in the recognition of a deferred tax liability in relation to statement rather than the asset revaluation reserve. This means any revalued assets that are generally not recognised under current asset revaluation reserve balances relating to such property will be written back to accumulated funds. AGAAP. This also changes the quantum and timing of the tax expense. 4. AASB 119 Employee Benefits requires the defined benefit superannuation obligation to be discounted using the government bond rate as at each reporting date rather than the long-term expected rate of return on plan assets. Where the superannuation obligation is not assumed by the Crown this will increase the defined benefit superannuation liability (or decrease the asset for those agencies in an overfunded position) and change the quantum of the superannuation expense.

(b) Financial Instruments In accordance with NSW Treasury’s indicative mandates Forests NSW will financial instruments. However when these standards are applied they are apply the exemption provided in AASB 1 First-time Adoption of Australian likely to impact on retained earnings (on first adoption) and the amount Equivalents to International Financial Reporting Standards not to apply the and volatility of profit/loss. Further the impact of these Standards will in part requirements of AASB 132 Financial Instruments: Presentation and Disclosures depend on whether the fair value option can or will be mandated consistent and AASB 139 Financial Instruments: Recognition and Measurement for the with Government Finance Statistics. financial year ended 30 June 2005. These Standards will apply from 1 July 2005. None of the information provided above includes any impacts for

NSW Department of Primary Industries ANNUAL REPORT 2004–05 63 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

2. OPERATING EXPENSES Consolidated Parent Actual Actual 2005 2005 $'000 $'000

(a) Employee Related Expenses comprise the following specific items: Salaries and wages (including recreation leave) 229 242 167 177 Superannuation 8 983 15 227 Long service leave 20 575 17 705 Workers compensation insurance 4 173 3 742 Payroll tax and fringe benefits tax 16 927 13 265 Redundancy Payments 25 355 22 223 Other - Miscellaneous 2 088 2 088

307 343 241 427

Salaries and Wages costs relating to staff directly associated with the maintenance of Property and Plant have been charged to Maintenance.

(b) Other operating expenses Auditor's remuneration - review of financial reports 383 136 Internal Audit 240 240 Cost of sales 4 070 4 070 Operating lease rental expense - minimum lease payments 8 981 8 981 Insurance 2 677 1 880 Other - Motor Vehicles 8 544 8 544 - Marine Craft Expenses 169 169 - Travel 10 383 8 305 - Advertising 1 216 1 150 - Fees 47 146 39 270 - Consultancy 1 732 1 098 - Gas Electricity 2 535 2 535 - Printing 1 448 899 - Payments to Other Organisations: 5 790 8 851 - Overseas Expenses 82 82 - Postal & Telephone 6 285 4 395 - Refunds 496 496 - Stores Consumables 20 194 20 194 - Rates Charges etc. 931 578 - Freight 420 420 - Cleaning 2 196 2 196 - F.B. Taxable Expenditure 297 16 - National Livestock Identification Scheme 3 289 3 289 - Miscellaneous 762 762 - Bad and Doubtful Debts 371 328 - Training Costs 634 634 - Legal Fees 918 393 - Minor Plant and Equipment 1 827 1 806 - Distribution of Joint Project Funds 711 711 - Disaster Welfare Relief 14 14 - Agricultural Scientific Collections Trust 15 15 - Maintenance & Relocation of Travelling Stock Routes 70 70 - Chicken Meat Industry Committee 19 19

64 NSW Department of Primary Industries ANNUAL REPORT 2004–05 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

- NSW Institute of Rural Studies 4 4 - Tocal Homestead Maintenance 23 23 - Contractors 12 143 0 - Materials 18 176 0 - Stamp Duty 468 0

165 659 122 573 (c) Depreciation expense Buildings 7 321 5 673 Infrastructure 2 841 2 841 Motor Vehicles 1 163 1 163 Marine Craft 389 389 Other - Computer equipment 795 795 - General plant & equipment 12 054 7 107 - Roadways 3 553 0 - Other 75 75

28 191 18 043 (d) Grants and subsidies Destruction of Noxious Weeds 7 377 7 377 Wild Dog Destruction Board 60 60 Animal Welfare Organisations 321 321 Rural Lands Protection Boards 1 694 1 694 Rural Counsellors Contribution 1 656 1 656 Grants to Government Bodies 42 9 599 Grant to Other Non-Government Bodies 3 076 3 076 Safe Food Production 11 676 11 676 Fisheries Grants & Subsidies 431 431 Drought Transport Subsidies 21 405 21 405

47 738 57 295 (e) Borrowing Costs Interest on Treasury Advance 1 390 1 390

1 390 1 390 (f) Other expenses Beekeepers' Compensation 7 7 Plant Chemical Residue Monitoring 491 491 Citrus Canker 1 030 1 030 Salvinia Weed 200 200 Shark Meshing 610 610 Buyout of Commercial Fisheries (refer to Note 1 (aa)) 286 286 Remedial Works to Mined Areas 1 701 1 701

Australian Standing Committee on Agriculture: Publications & Databases Committee 63 63 Vet Serology Quality Assurance 23 23 National Abrovirus Monitoring 41 41 Eradication of Siam Weed 40 40 CCRP CCRVDE & CCRVDF Meetings 4 4 National Animal Health Information System 242 242 Fruit Fly Suppression 163 163

NSW Department of Primary Industries ANNUAL REPORT 2004–05 65 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

Oriental Fruit Fly Eradication - Torres Strait 13 13 Australian Plant Health Council - NSW Contribution 135 135 Branched Broomrape Eradication 148 148 Environmental Management Systems in Australian Agriculture 10 10 Australian Weeds Committee 19 19 Grapevine Leaf Rust - Northern Territory 57 57 Red Imported Fire Ant in Queensland 5 271 5 271 Eradication of Tropical Weeds 17 17 Ovine Johnes Disease - NSW Contribution 344 344

10 915 10 915

3. REVENUES Consolidated Parent Actual Actual 2005 2005 $'000 $'000

(a) Sale of goods and services Sale of goods: Sale of produce 5 419 5 419 Sale of publications 1 082 1 082 Sale of seized products 2 2

Rendering of services: Laboratory testing 5 451 5 451 Board & lodgings 733 733 Education 1 162 1 162 Fees for services rendered 82 003 3 639 Fishery Application and Management Fees 4 411 4 411 Rental Income 29 29 Fishing Clinic Income 6 6 Tour Guide Fees 23 23 Commonwealth Inspections 492 492 Contributions for Aquaculture Administration 216 216 Aquaculture Lease Bonds 138 138 Other 11 341 289

112 508 23 092 (b) Investment income Interest 2 526 2 126 Rents 4 092 1 138 Royalties General 1 118 1 118 Royalties from sale of timber and related products 128 188 0 Dividends 59 59

135 983 4 441 (c) Retained Fees Recreational Fishing Fees (Note 1 (ab)) 10 032 10 032

10 032 10 032 (d) Grants and Contributions Grants - Industry/Private Bodies 26 937 26 937

66 NSW Department of Primary Industries ANNUAL REPORT 2004–05 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

Grants - Public Authorities 574 574 Grants - Other State Governments 1 215 1 215 Grants - Dept of Infrastructure Planning and Natural Resources 605 605 Grants - Other Employment Schemes 64 64 Grants - Commonwealth Government 4 308 4 308 Grants - Dept of Education and Training 752 752 Grants - Budget Sector Agencies 12 477 2 493 Grants from Local Government 85 85

47 017 37 033 (e) Other revenue Refunds received 667 667 Administration charges 25 25 Rural Lands Protection Board Levies 4 377 4 377 Trade ins 251 251 Other: - Sales 1 525 1 525 - Intellectual property 76 76 - Crown Grants - Natural Disaster Relief 14 14 - Dairy Structural Adjustment scheme 118 118 - Miscellaneous 3 953 3 953

11 006 11 006

4. GAIN/(LOSS) ON DISPOSAL OF NON-CURRENT ASSETS Consolidated Parent Actual Actual 2005 2005 $'000 $'000

Gain /(loss) on disposal of property plant and equipment Proceeds from sale 22 920 3 321

Written down value of assets sold (18 561) (2 154)

Net gain on disposal of property plant and equipment 4 359 1 167

5. OPERATING PROFIT Consolidated Parent Actual Actual 2005 2005 $'000 $'000

Forests NSW (a) Net Gains and Expense Operating profit before income tax includes the following specific net gains and expenses:

i) Expenses Borrowing Costs Interest and finance charges 7 224 0 Less: Amount capitalised (7 224) 0 Borrowing costs expenses 0 0

Written down value of property plant and equipment disposed 16 878 0

NSW Department of Primary Industries ANNUAL REPORT 2004–05 67 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

Depreciation Buildings 1 648 0 Roads & Bridges 3 553 0 Plant and Equipment 4 947 0 Total Depreciation 10 148 0

Other charges against assets Bad Debts written off - trade debtors 20 0

Provisions (expense) Doubtful debts 23 0 Employee entitlements 12 237 0 Workers compensation (50) 0 Dividend 27 344 0 Total other provisions 39 554 0

ii) Cost of Goods Sold Deemed Cost of Goods Sold 128 188 0

(b) Individually Significant Items Operating profit after income tax includes the following individually significant items: Expenses Net gain/(loss) from staff superannuation fund 11 578 0 Applicable income tax credit (3 473) 0 8 105 0

Net Movement in Staff Superannuation Fund 8 105 0 Net increment/(decrement) in net market value of timber (39 992) 0 Write off of failed plantations (647) 0 Redundancy payments (3 926) 0 Total of significant items (36 460) 0

6. INCOME TAX EQUIVALENTS Consolidated Parent Actual Actual 2005 2005 $'000 $'000

Forests NSW The aggregate amount of income tax attributable to the financial year differs from the amount calculated on the operating profit. The differences are reconciled as follows:

Profit / (Loss) from Ordinary activities before income tax expense 7 656 0

Income tax calculated @ 30% 2 297 0 Tax effect of permanent differences which: Increase tax payable: Amortisation of plantation stock sold 2 811 0 Non-deductible depreciation from revaluations of fixed assets 608 0 Non-deductible building depreciation 295 0

68 NSW Department of Primary Industries ANNUAL REPORT 2004–05 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

Non-deductible losses from assets disposal 1 569 0 Non-deductible expenditure of a capital nature 240 0 Non-deductible Land Disposal 215 0 Non-deductible Charges - Disposal of Roads 0 0 Sundry Items 27 0 Decrease tax payable: Capital profit from assets disposal 68 0 Employee Superannuation Fund Gains (3 377) 0

Income tax adjusted for permanent differences 4 753 0 Adjustment to opening balances of deferred income tax liability 0 0 Adjustment to opening balances of deferred income tax asset 0 0

Income tax attributable to operating profit 4 753 0

Income tax attributable to operating profit: Provision for income tax 5 290 0 Deferred income tax liability (50) 0 Deferred income tax asset (487) 0 4 753 0

7. CONDITIONS ON CONTRIBUTIONS

Parent Contributions of $26.937m during 2004/05 were provided for specific purposes, with the Agency having an obligation to use these funds as specified by the donor body. (a) The aggregate of contributions recognised as revenues during the financial year in respect of which expenditure, in manner specified by the contributors, has not been made as at 30 June 2005 is zero (30 June 2004 – zero). (b) The aggregate of contributions recognised as revenues during the 2004/05 financial year which were provided specifically for expenditure over a future period is zero(30 June 2004 – zero). (c) The aggregate of contributions recognised as revenues in a previous financial year which were obtained for expenditure in respect of the 2004/05 financial year is zero(30 June 2004 – zero). (d) The nature of the material components of the amounts referred to in (a), (b), and (c ) above: (a)Salaries – zero and Operating – zero (30 June 2004 – zero). (e) Total amounts of contributions (classified by major categories) which were unexpended at 30 June 2005 (including those received in prior years) were $7.784m (30 June 2004 - $10.963m). The conditions imposed upon these amounts stipulate that such amounts are required to be expended on the specific project for which the funds were provided. Any funds that are not used on the specific project must be either refunded to the donor body or rolled over into the next project with the donor bodie's approval. Refer Note 18.

NSW Department of Primary Industries ANNUAL REPORT 2004–05 69 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

8. APPROPRIATIONS Consolidated Parent Actual Actual 2005 2005 $'000 $'000

Recurrent appropriations Total recurrent drawdowns from Treasury (per Summary of Compliance) 302 644 302 644 Less: Liability to Consolidated Fund (per Summary of Compliance) (2 334) (2 334) 300 310 300 310 Comprising: Recurrent appropriations (per Statement of Financial Performance) 300 310 300 310 Transfer payments 0 0

300 310 300 310 Capital appropriations Total capital drawdowns from Treasury (per Summary of Compliance) 22 911 22 911 Less: Liability to Consolidated Fund (per Summary of Compliance) 0 0 22 911 22 911 Comprising: Capital appropriations (per Statement of Financial Performance) 22 911 22 911 Transfer payments 0 0

22 911 22 911

9. ACCEPTANCE BY THE CROWN ENTITY OF EMPLOYEE BENEFITS AND OTHER LIABILITIES Consolidated Parent Actual Actual 2005 2005 $'000 $'000

The following liabilities and/or expenses have been assumed by the Crown Entity or other government agencies: Superannuation 15 016 15 016 Long service leave 17 019 17 019 Payroll tax 901 901

32 936 32 936

10. PROGRAMS/ACTIVITIES OF THE DEPARTMENT

Agriculture Program objective: To assist the community to produce competitive agricultural products, while improving the natural resource base by reducing the impact of environmental degradation, natural disasters, pests, weeds, disease and agricultural chemicals on the landscape and people of New South Wales. Program description: Delivery of programs targeted to agricultural issues and industries utilising innovative research, extension, education and regulation.

Fisheries Program objective: To conserve, develop and share the fishery resources of the State for the benefit of present and future generations. Program description: Management, research and compliance programs to conserve the State’s fisheries resources and habitat, promote sustainable harvest, allocate resources fairly between users and facilitate the further development of a viable aquaculture industry.

70 NSW Department of Primary Industries ANNUAL REPORT 2004–05 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

Minerals Program objective: To provide sustainable mineral resources management and development resulting in high and stable economic growth and employment from exploration and mining, a safe and healthy mining industry and environmentally responsible exploration and mining. Program description: Assessment of the State’s geology and mineral resources, their allocation to private interests for exploration and mining, and regulation of exploration and mining activities for safety and environmental performance.

11. CURRENT ASSETS - CASH Consolidated Parent Actual Actual 2005 2005 $'000 $'000

Cash at bank and on hand* 75 799 69 682

75 799 69 682

For the purpose of the Statement of Cash Flows, cash includes cash on hand and cash at bank. Cash assets recognised in the Statement of Financial Position are reconciled to cash at the end of the financial year as shown in the Statement of Cash Flows as follows: Cash (per Statement of Financial Position) 75 799 69 682 Other Financial Assets 2 260 0

Closing cash and cash equivalents 78 059 69 682

NOTE: * Included in this balance is the following special deposit accounts Agricultural Scientific Collections Trust 20 20

Transactions of the Agricultural Scientific Collections Trust are recognised in relevant amounts recorded in these financial statements. A separate general purpose financial report is prepared for the Agricultural Scientific Collections Trust as required in the Agricultural Scientific Collections Trust Act 1983.

12. CURRENT ASSETS - RECEIVABLES Consolidated Parent Actual Actual 2005 2005 $'000 $'000

CURRENT

Sale of goods and services 43 966 10 045 Other: Interest Receivable 921 921 Miscellaneous 20 142 2 338 Fishery Application and 995 995 Management Fees Accrued Income 6 6 Less: Provision for doubtful debts (1 864) (1 255)

64 166 13 050

Debts written off during the year as irrecoverable. 68 68

NSW Department of Primary Industries ANNUAL REPORT 2004–05 71 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

13. CURRENT ASSETS - INVENTORIES Consolidated Parent Actual Actual 2005 2005 $'000 $'000

CURRENT Valued at Cost Publications 1 499 1 499 Insecticide 671 671 Stores / Fuel 124 124 Materials and Parts 4 541 0 Work in Progress and Finished Goods 2 423 0 Less: Provision for Stock Losses (13) 0

Valued at net realisable value Land held for resale 237 237 Livestock 3 944 3 944 Fodder 661 661

14 087 7 136

14. CURRENT - NON-CURRENT ASSETS - OTHER FINANCIAL ASSETS Consolidated Parent Actual Actual 2005 2005 $'000 $'000

CURRENT NSW Treasury Corporation Hourglass Investments 2 018 0 Other 242 0

2 260 0

NSW Treasury Corporation Hourglass Investments The NSW Treasury Corporation Hourglass Investments have been subject to floating interest rates between 5.30% and 6.17% (2004: 4.69% and 6.03%).

NON-CURRENT Gold Exhibits 239 239 Shares in Co-Operatives 559 559

798 798

Gold Exhibits The Department has control and custody of certain gold exhibits which were transferred following the closure of the Earth Exchange (Mining Museum) in 1995. Valuations are based on the gold price of AUD$561.97 per Troy Oz. These exhibits are as follows:

Maitland Bar 193 193 Lucky Hit 24 24 Woods Flat 12 12 Alluvial Gold 10 10

TOTAL 239 239

72 NSW Department of Primary Industries ANNUAL REPORT 2004–05 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

The value of shares represents holdings in: Australian Co-Operative Foods Ltd 450 450 Norco Co-Operative Ltd 89 89 Rice Growers Co-Operative Mills Ltd 10 10 Rice Marketing Board of NSW 10 10

TOTAL 559 559

15. CURRENT ASSETS - OTHER Consolidated Parent Actual Actual 2005 2005 $'000 $'000

CURRENT Prepayments - Rental / Lease 1 259 1 259 Prepayments - Other 3 673 518 Superannuation Fund 6 557 0

11 489 1 777

SUPERANNUATION Superannuation is treated in two different methods within DPI. The majority of superannuation is recognised as a liability to the Crown. This applies to employees who were employed by the former dapartments of Agriculture Fisheries and Minerals Resources. Superannuation for employees of the former State Forests is managed by Pillar on behalf of DPI. Parent The superannuation expense for the financial year is determined by using the formulae specified in the Treasurer’s Directions. The expense for certain superannuation schemes (i.e. Basic Benefit and First State Super) is calculated as a percentage of the employees’ salary. For other superannuation schemes (i.e. State Superannuation Scheme and State Authorities Superannuation Scheme) the expense is calculated as a multiple of the employees’ superannuation contributions. Forests NSW Calculation of the total liability for superannuation is based on actuarial advice provided by Pillar Administration. The superannuation liability in the Statement of Financial Performance is the difference between the gross liabilities and the stake in the funds at reporting date in respect of State Forests’ employees.

(i)Employee Superannuation Funds - Forests Only

The Employee Benefits liability was determined by the Fund’s actuary at 30 June 2005 based upon membership information as at 31 March 2005.

Consolidated Actual SASS SANCS SSS 2005 $’000 $’000 $’000 $'000 Estimated Reserve Account balance 32 314 9 074 116 895 158 282 Accrued Employees Benefits Liability (32 689) (8 788) (110 248) (151 725)

Unfunded liability (375) 286 6 647 6 557

SASS State Authorities Superannuation Scheme SANCS State Authorities Non-Contributory Superannuation Scheme SSS State Superannuation Scheme

NSW Department of Primary Industries ANNUAL REPORT 2004–05 73 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

The Employee Benefits was assessed by the Fund’s actuary based on the following financial assumptions:

2007-08 2005-2006 2006-2007 & thereafter % % % Rate of investment return 7 7 7 Rate of salary increase 4 4 4 Rate of increase in Consumer Price 2.5 2.5 2.5 Index

16. NON-CURRENT ASSETS - PROPERTY PLANT AND EQUIPMENT Consolidated Parent Actual Actual 2005 2005 $'000 $'000

Land and Buildings At Fair Value 999 417 226 035 Less Accumulated Depreciation (9 325) (7 968)

990 092 218 067 Plant and Equipment At Fair Value 147 487 103 560 Less Accumulated Depreciation (60 117) (51 117)

87 370 52 443 Infrastructure Systems At Fair Value 223 192 32 169 Less Accumulated Depreciation (102 275) (4 413)

120 917 27 756 Digital Imaging System (DIGS) At Fair Value 5 899 5 899 Less Accumulated Depreciation (3 540) (3 540)

2 359 2 359

Property Plant and Equipment in the course of construction 6 068 0

Total Property Plant and Equipment at Net Book Value 1 206 806 300 625

74 NSW Department of Primary Industries ANNUAL REPORT 2004–05 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

0 0 0 0 2 717 2 2005 $'000 23 394 23 098 12 Actual (4 687) (4 871) (4 Parent 290 018 290 (18 044) (18 300 625 300 TOTAL 0 1 0 (471) 2 717 2 2005 $'000 35 369 35 098 12 Actual (4 687) (4 (21 278) (21 (28 486) (28 1 211 543 211 1 1 206 806 206 1 Consolidated 0 0 0 0 0 0 0 0 0 (590) 2 949 2 2005 2 359 2 $'000 Actual Parent DIGS 0 0 0 0 0 0 0 0 0 (590) 2 949 2 2005 2 359 2 $'000 Actual Consolidated 0 0 0 0 0 0 13 694 (145) 2005 $'000 30 035 30 Actual (2 841) (2 Parent 27 756 27 0 0 0 0 0 0 13 (145) 4 701 4 2005 $'000 Actual (6 393) (6 122 741 122 120 917 120 Infrastructure Systems Consolidated 0 0 0 18 2 916 2 2 691 2 2005 $'000 19 011 19 44 485 44 Actual (3 051) (3 (4 687) (4 (8 940) (8 Parent 52 443 52 0 0 0 18 2 916 2 2 691 2 2005 $'000 25 677 25 86 404 86 Actual (5 607) (5 (4 687) (4 93 438 93 (13 974) (13 Plant and Equipment Plant Consolidated 0 0 0 0 13 (18) 3 689 3 9 182 9 2005 $'000 Actual (1 675) (1 (5 673) (5 Parent 212 549 212 218 067 218 0 1 0 13 (18) (471) 4 991 4 9 182 9 2005 $'000 Actual (7 529) (7 Land and Buildings 999 449 999 (15 526) (15 990 092 990 Consolidated 16. NON-CURRENT (CONTINUED) PROPERTY PLANT ASSETS AND EQUIPMENT AMOUNT OF CARRYING RECONCILIATION Additions Additions Revocations Asset Reversal of Work-In-progress as at 30.06.2004 Work-In-progress Reversal of Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the current and previous financial year are set out below. Reconciliations of the carrying are financial year and previous and end of the current plant and equipment at the beginning amounts of each class property, Carrying amount at start of year Disposals DepartmentThe as they cannot be measured of scientific collectionsnot included in the financial statements holds assets in the form which are Act 1983. Trust Scientific Collections the Agricultural by protected assets are These reliably: 1 (l). see Note Asset Dedications Asset increment Net revaluation less revaluation decrements less revaluation Carrying amount at end of year Transfers Expense Depreciation Writeback on disposal Writeback

NSW Department of Primary Industries ANNUAL REPORT 2004–05 75 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

17. SELF GENERATING AND REGENERATING ASSETS Consolidated Parent Actual Actual 2005 2005 $'000 $'000

(a) Softwood Plantation Timber

i) Valuation

Net market value of timber at beginning of reporting period 1 178 350 0

Capital expenditure - plantation establishment & development 17 458 0 Capitalisation of borrowing costs 7 724 0 Write-off of growing stock &/or establishment costs (102) 0 Sale of Plantations (972) 0 Carrying amount as at the reporting date (prior to adjusting for changes in net market value) 1 202 458 0

Net market value at reporting date 1 132 909 0

Net increment in the net market value of timber (69 549) 0

ii) Plantation area by species and age class 2 005 2 005 Hectares Hectares Pinus radiata 0 –14 years 58 276 0 15-30 years 100 259 0 31 years and over 30 101 0 Total 188 636 0

Southern Pine 0 –14 years 3 765 0 15-30 years 3 687 0 31 years and over 1 844 0 Total 9 296 0

Other major species 0 –14 years 57 0 15-30 years 170 0 31 years and over 3 027 0 Total 3 254 0

Total Area of Softwood Plantation 201 186 0

iii) Softwood Plantation - standing volumes by major species

Species Commercial Standing Volume (m3) 2005 Pinus radiata 40 394 398 Southern Pine 983 684 Other Major 560 139 Other Species 227 462

76 NSW Department of Primary Industries ANNUAL REPORT 2004–05 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

(b) Hardwood Plantation Timber

i) Valuation 2 005 2 005 $'000 $'000

Carrying amount of timber at beginning of reporting period – at fair value 58 665 0

Capital expenditure - plantation establishment & development 2 105 0 Sale of Plantations (29) 0 Write off of failed plantations (647) 0 Carrying amount as at the reporting date – at fair value 60 094 0

ii) Plantation area by species (all less than 15 years old) 2 005 2 005 Hectares Hectares Eucalyptus dunni 8 384 0 Corymbia macaluta 4 320 0 Eucalyptus pilularis 4 807 0 Other Hardwood Plantation Species 9 405 0 Total Area of Hardwood Plantation 26 916 0

(c) Native Forest Timber

i) Valuation 2 005 2 005 $'000 $'000 Net market value of timber at beginning of reporting period 372 374 0

Net market value at reporting date 401 931 0

Net increment in the net market value of timber 29 557 0 ii) Species Mix of Native Forest areas 2 005 2 005 Productive forest areas: Hectares * Hectares * Alpine Ash 16 916 0 Blackbutt 84 155 0 Blue Gum 66 185 0 Messmate 171 136 0 Mixed Coastal Eucalypt 109 586 0 Other Inland Eucalypt types 245 087 0 Rainforest 6 673 0 River Red Gum 93 300 0 Snow Gum 19 049 0 Spotted Gum 136 185 0 Stringybark 170 032 0 Un-classified 53 369 0 White Cypress Pine 234 232 0

Total 1 405 905 0

Total non productive forest areas 886 281 0

Total Area of Native Forest 2 292 186 0 * Native Forests are not homogenous by species. A total hectare by species is a proportional measure rather than representing discreet forests by species type.

NSW Department of Primary Industries ANNUAL REPORT 2004–05 77 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

18. RESTRICTED ASSETS

The Department conducts research projects on behalf of a wide range of donor bodies. These bodies provide funds that are restricted to use on projects specified by the donor body. Strict terms and conditions apply to the use of these funds. Any unspent funds are returned to the donor bodies Refer to Note 7.

The Agricultural Scientific Collections Trust is controlled by separate legislation. That being the Agricultural Scientific Collections Trust Act 1983

19. CURRENT LIABILITIES - PAYABLES Consolidated Parent Actual Actual 2005 2005 $'000 $'000

Accrued Salaries wages and on-costs 1 207 0 Accrued Redundancy payments 0 794 Receipts in Advance 11 704 0 Other Accrued Expenses 2 759 2 759 Lightning Ridge Residential Claims 453 453 Accrued Leave Loading 680 680 Creditors 27 298 7 347

44 101 12 033

20. CURRENT/NON-CURRENT LIABILITIES - INTEREST BEARING LIABILITIES Consolidated Parent Actual Actual 2005 2005 $'000 $'000

CURRENT Treasury Advance Repayable - Ovine Johnes Disease Loan 1 260 1 260 TCorp borrowings - Forests NSW 29 365 0 Treasury Advance Repayable - Locust Loan 3 500 3 500 Treasury Advance Repayable - Buyout of Commercial Fishers 855 855

34 980 5 615 NON-CURRENT Treasury Advance Repayable - Ovine Johnes Disease Loan 2 520 2 520 TCorp borrowings - Forests NSW 108 697 0 Treasury Advance Repayable - Locust Loan 10 500 10 500 Treasury Advance Repayable - Buyout of Commercial Fishers 17 093 17 093

138 810 30 113 TOTAL REPAYMENT OF BORROWINGS Not later than one year 34 980 5 615 Between one and five years 43 662 17 038 Later than five years 95 148 13 075 Total borrowings at face value 173 790 35 728

NSW Treasury Corporation outstanding loan interest rates ranged between 5.08% and 6.73% (2004: 5.50% and 8.00%).

78 NSW Department of Primary Industries ANNUAL REPORT 2004–05 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

21. DIVIDEND Consolidated Parent Actual Actual 2005 2005 $'000 $'000

Provision for dividend at beginning of year 13 096 0 Dividend paid (13 096) 0 Dividend provided (27 254) 0

Provision for dividend at end of the year (27 254) 0

22. CURRENT/NON-CURRENT LIABILITIES - PROVISIONS Consolidated Parent Actual Actual 2005 2005 $'000 $'000

CURRENT Employee benefits and related on-costs Recreation Leave 22 167 18 336 Long Service Leave 3 378 1 578 Workers Compensation 1 020 0 Other 824 0 Redundancy 5 000 5 000

32 389 24 914

NON-CURRENT Recreation Leave 2 345 0 Long Service Leave 24 720 5 276 Workers Compensation 3 310 0 Other 366 0

30 741 5 276 Aggregate employee benefits and related on-costs Provisions - current 32 389 24 914 Provisions - non-current 30 741 5 276 Accrued salaries wages and on-costs (Note 19) 1 207 0 Accrued Redundancy payments (Note 19) 0 794 Accrued Leave Loading (Note 19) 680 680

65 017 31 664

23. CURRENT/NON-CURRENT LIABILITIES - OTHER Consolidated Parent Actual Actual 2005 2005 $'000 $'000

CURRENT Liability to Consolidated Fund 2 334 2 334 2 334 2 334

NSW Department of Primary Industries ANNUAL REPORT 2004–05 79 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements 0 0 0 0 (1) 721 9 182 9 195 2 2005 $'000 Actual Parent (3 664) (3 316 447 316 (15 761) (15 316 447 316 783 312 Total Equity Total 0 0 (1) 721 9 182 9 195 2 2005 3 992 3 $'000 (8105) Actual (4 753) (4 (27 254) (27 2 443 717 443 2 Consolidated 2 411 710 411 2 702 415 2 0 0 0 0 (1) 721 (900) 9 182 9 195 2 2005 $'000 Actual Parent 11 197 11 127 191 127 127 191 127 388 138 0 0 0 0 (1) 721 9 182 9 195 2 2005 $'000 Actual Asset Revaluation Reserve Revaluation Asset (9 192) (9 866 032 866 (21 289) (21 866 032 866 840 856 Consolidated 0 0 0 0 0 0 0 900 2005 $'000 Actual Parent 189 256 189 (15 761) (15 189 256 189 395 174 (14 861) (14 0 0 0 0 0 Accumulated Funds Accumulated 2005 $'000 Actual 21 289 21 (4 753) (4 105) (8 13 184 13 (27 254) (27 1 155 979 155 1 Consolidated 1 123 972 123 1 156 137 1 0 0 0 0 0 0 0 0 0 0 0 0 0 2005 $'000 Actual Parent Capital 0 0 0 0 0 0 0 0 0 0 2005 $'000 Actual 421 706 421 421 706 421 421 706 421 Consolidated 24. CHANGES IN EQUITY Income tax equivalent expense Dividend provided Total / increments Revaluation (decrements) Balance at the beginning of the financial Balance at the beginning year Transfer - Other (decrease) increases reserves from/(to) the end of financial at Balance year Total Land and buildings Changes in equity - transactions with Owners as Owners Revocations Changes in Equity-other than transactions as owners. with owners the year Surplus/(deficit) for Library Books Plant & Equipment Plant Other - Gold Exhibits Assets Asset revaluation reserve revaluation Asset with NSW Department accords This of Primary Industries' of non-current on the revaluation assets. and decrements policy Revaluation Asset Reserveincrements The on the 'Revaluation of Physical record is used to 1. as discussed in Note Assets' and 'OtherNon-Current Assets' Financial

80 NSW Department of Primary Industries ANNUAL REPORT 2004–05 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

25. COMMITMENTS FOR EXPENDITURE Consolidated Parent Actual Actual 2005 2005 $'000 $'000

(a) Capital Commitments Land and Buildings Aggregate capital expenditure for the acquisition of Land and Buildings contracted for at balance date but not provided for: Not later than one year 0 0

Total (including GST) 0 0

Infrastructure Aggregate capital expenditure for the acquisition of Infrastructure contracted for at balance date but not provided for: Not later than one year 116 116

Total (including GST) 116 116

Plant and Equipment Aggregate capital expenditure for the acquisition of Plant and Equipment contracted for at balance date but not provided for: Not later than one year 11 864 3 381

Total (including GST) 11 864 3 381

(b) Other Expenditure Commitments Aggregate other expenditure contracted for the acquisition of goods and services contracted for at balance date but not provided for: Not later than one year 11 763 11 201

Total (including GST) 11 763 11 201

(c) Operating Lease Commitments - Head Office and Maitland Buildings Future non-cancellable operating lease rentals not provided for and payable: Not later than one year 6 269 6 269 Later than one year but not later than 5 years 28 229 28 229 Later than 5 years 74 206 74 206

Total (including GST) 108 704 108 704

Representing: Non-cancellable operating leases 108 704 108 704

(d) Operating Lease Commitments - Other Future non-cancellable operating lease rentals not provided for and payable: Not later than one year 6 801 5 270 Later than one year but not later than 5 years 4502 2 786 Later than five years 545 0

Total (including GST) 11 848 8 056

Representing: Non-cancellable operating leases 11 848 8 056

NSW Department of Primary Industries ANNUAL REPORT 2004–05 81 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

The total commitments includes input tax credits of $13.118m that are expected to be recoverable from the Australian Taxation Office. Operating Leases predominantly comprise office accommodation computer equipment and motor vehicles. Some contingent rental payments are arrived at by increasing the base rental by the annual CPI. Other lease agreements approximately 50% which do not include annual CPI increments have annual set increases detailed in the lease agreements. Lease renewal options for office accommodation exist in the large majority of cases. There are no renewal or purchase options for motor vehicles or computer equipment except by negotiation at the end of the lease term. This usually does not occur.

26. CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Parent As at 30 June 2005 the Agency has $10.308m of outstanding court cases as set out by category below: 2005 Negligence $0.080m Contamination $0.745m Minerals and mine safety $3.455m Personal Injury $1.380m Licence Validity $1.100m Appeals $3.250m Disputed Fish Seizure $0.100m Compulsory Acquisition $0.198m Total $10.308m At this stage, the Agency does not believe any material liability will accrue to it. The Treasury Managed Fund insures the Agency except for some contingent liabilities.

Forests NSW State Forests had several matters before the courts subject to due process under the law. These matters include amounts, which may or may not be incurred dependent on the court’s determination. At balance date, potential claims total approximately $0.153m (2004: $2.020m). As at the 30th June 2005 various areas of state forest have been the subject of claims under the Native Title Act. The impact of these claims on the carrying value of assets cannot be quantified at this time.

27. BUDGET REVIEW

Parent The budget process is finalised prior to the beginning of each financial year. Events can arise after that date that necessitate variations to the planned activities of the Department for that year. This in turn may cause variations to the financial activities. Major variations between the original budget and actual amounts are outlined below. Net cost of services The Net Cost of Services result was $80.732m over original budget. This is due mainly to expenditure supplementation associated with the continuance of the drought assistance program ($17.222m), the effort to combat a major plague locust outbreak ($21.340m). Voluntary Redundancies ($28.794m) and an increase in Long Service Leave due to an incorrect basis of measurement pre 2004-2005 also contributed to the over budget result. Assets and liabilities Current Assets are over budget as at 30 June 2005 by $7.926m. Cash has contributed to this to the extent of $9.590m. This is predominately due to the receipt of budgeted industry funds and redundancy payments from Treasury. Receivables are over budget by $2.843m. Non-Current Liabilities are over budget by $16.881m. This is largely due to the receipt of a loan to assist with the eradication of Plague Locusts ($14.0m).

82 NSW Department of Primary Industries ANNUAL REPORT 2004–05 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

Cash flows Cash Flows from Operating Activities is under budget by $10.828m. This is due to the supplementations received for drought assistance, plague locust control and voluntary redundancies as outlined in the Net Cost of Services explanation above. Cash Flows from Investing Activities is under budget by $3.188m. This is due to a budget for Repayment of Advances of $3.230m which did not eventuate and the finalisation of Work In Progress of $4.702m which was reported as part of the Mineral Resources NSW 2003-2004 Cash Flow Statement.

28. RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES TO NET COST Consolidated Parent OF SERVICES Actual Actual 2005 2005 $'000 $'000

PARENT

Net cash used on operating activities 4 152 4 152 Cash Flows from Government / Appropriations (331 265) (331 265) Acceptance by the Crown Entity of employee benefits and other liabilities (26 576) (26 576) Depreciation (18 043) (18 043) Provision for doubtful debts (110) (110) Write down of plantation and asset revocations Revaluation increment Non cash expenses (4 687) (4 687) Non cash revenues / trade-ins received 251 251 Decrease / (Increase) in provisions (2 875) (2 875) Movement in net deferred tax payable Increase/(Decrease) in receivables 2 196 2 196 Increase/(Decrease) in inventories Increase/(Decrease) in other financial assets 32 32 Increase/(Decrease) in prepayments and other assets (691) (691) (Increase)/Decrease in creditors 3 854 3 854 (Increase)/Decrease in other current liabilities 677 677 Net gain/(loss) in sale of plant and equipment 1 167 1 167

Net cost of services (371 918) (371 918)

FORESTS NSW

Operating profit/(loss) after income tax 2 903 0 Adjusted for NSW Government Capital Grant 0 0 2 903 0 Adjusted for non-cash items: Depreciation 10 442 0 Loss on disposal of non-current assets (3 192) 0 Write-down of plantation & Asset Revocations 1 750 0 Revaluation (Increment)/Decrement - Native Forests (29 557) 0 - Softwood Plantations 69 549 0 48 992 0 Change in operating assets and liabilities Movement in receivables (4 632) 0 Movement in inventories 609 0

NSW Department of Primary Industries ANNUAL REPORT 2004–05 83 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

Movement in creditors 3 491 0 Movement in provisions (13 600) 0 Movement in net deferred tax payable (537) 0 (14 669) 0

Net cash inflow from operating activities 37 226 0

As at 30 June 2005 Forests NSW had $5 000 000 available in unused credit a ‘Come and Go’ Facility held with NSW TCorp.

29. MACHINERY OF GOVERNMENT CHANGE

On 6 April 2004 the State Government announced the amalgamation of four government agencies to form the Department of Primary Industries from 1 July 2004. The agencies involved were Department of Agriculture NSW Fisheries Department of Mineral Resources and State Forests.

30. TRUST FUNDS Consolidated Parent Actual Actual 2005 2005 $'000 $'000

a) Fisheries Related Trust Funds The Department holds money in a trust fund that is used for fisheries research by various independent organisations. These monies are excluded from the financial statements as the Department cannot use them for the achievement of its objectives. The following is a summary of the transactions in these trust accounts.

Fisheries Reserarch Development Corporation - Oyster Fishery Research Levy: Cash Balance at the beginning of the Financial Year (26) (26) Add: Receipts 91 91 Less: Expenditure (88) (88) Cash Balance at the end of the reporting period (23) (23)

Shellfish Quality Assurance Program Levy: Cash Balance at the beginning of the Financial Year 1 1 Add: Receipts 0 0 Less: Expenditure (1) (1) Cash Balance at the end of the reporting period 0 0

Aquaculture Fishery Research Levy: Cash Balance at the beginning of the Financial Year 45 45 Add: Receipts 33 33 Less: Expenditure (36) (36) Cash Balance at the end of the reporting period 42 42

Fisher Research Levy: Cash Balance at the beginning of the Financial Year 86 86 Add: Receipts 235 235 Less: Expenditure (208) (208) Cash Balance at the end of the reporting period 113 113

84 NSW Department of Primary Industries ANNUAL REPORT 2004–05 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements b) Minerals Related Trust Funds Trust Funds - Deposits under the Mining Acts Cash deposits are received in respect of various forms of titles issued under the provisions of the State's mining legislation. Such cash deposits are held by the Department during the currency of titles and are normally refunded to registered holders upon cessation providing certain title conditions have been observed. These monies are excluded from the financial statements as the Department cannot use them for the achievement of its objectives. The following is a summary of the transactions in the trust account.

Balance at the beginning of the Financial Year 8 932 8 932 Add: Receipts - 4 743 4 743 Less: Expenditure (1 005) (1 005) Balance at the end of the reporting period 12 670 12 670

31. FISHERIES MANAGEMENT ACT - SPECIAL FISHERIES TRUST FUNDS Consolidated Parent Actual Actual 2005 2005 $'000 $'000

Amendments to the Fisheries Management Amendment Act in 1997 and 2000 have provided for the establishment of six special fisheries trust funds. Under the Department's accounting structure all revenue paid into these trust funds and any expenditure therefrom is included in the Department's Financial Statements. While a separate bank account for each of these trusts is not kept the Department maintains separate cost centres. A summary of the accrual transactions relating to these special fisheries trust funds is outlined in the following table. The 'balance' of each of these special fisheries trust funds comprises cash and receivables.

Recreational Fishing (Freshwater) Trust Fund

Balance at the beginning of the Financial Year 568 568 Add: Revenue - Sales of goods and services Investment income (2) (2) Transfer from Saltwater Trust 2 500 2 500 Grants and contributions 148 148 2 646 2 646

Less: Projects Funded* (2 400) (2 400) (2 400) (2 400)

Balance at the end of the reporting period 814 814

* Of the 'projects funded' in 2005 and in prior periods an amount of $0.311m was unexpended at 30 June 2005. This amount will be carried forward into the various approved project budgets for 2005/06.

Recreational Fishing (Saltwater) Trust Fund

Balance at the beginning of the Financial Year 1 661 1 661 Add: Revenue - Sales of goods and services 18 18 Investment income 58 58 Grants and contributions 1 424 1 424 Retained fees Grants and contributions 10 032 10 032 11 532 11 532

NSW Department of Primary Industries ANNUAL REPORT 2004–05 85 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

Less: Projects Funded* (4 575) (4 575) Transfer to Freshwater Trust (2 500) (2 500) Loan Repayment Transfer (2 000) (2 000) Other (45) (45) (9 120) (9 120)

Balance at the end of the reporting period 4 073 4 073

* Of the 'projects funded' in 2005 and in prior periods an amount of $0.937m was unexpended at 30 June 2005. This amount will be carried forward into thevarious approved project budgets for 2005/06.

Commercial Fishing Trust Fund

Balance at the beginning of the Financial Year 3 959 3 959 Add: Revenue - Sales of goods and services 3 899 3 899 Investment income 172 172 4 071 4 071

Less: Contribution to Department activities* (4 214) (4 214) (4 214) (4 214)

Balance at the end of the reporting period 3 816 3 816

* All expenditure by the Department on existing activities related to commercial fishing is funded from a combination of Consolidated revenue user charges anda contribution from the Commercial Fishing Trust Fund. As a result moneys allocated from this trust fund are not 'project specific' and thus there is no carry forward into the next financial year.

Fish Conservation Trust Fund

Balance at the beginning of the Financial Year 118 118 Add: Revenue - Sales of goods and services 97 97 Investment income 11 11 108 108

Less: Projects Funded* (25) (25) (25) (25)

Balance at the end of the reporting period 201 201

* Of the 'projects funded' in 2005 and in prior periods an amount of $0.022m was unexpended at 30 June 2005. This amount will be carried forward into thevarious approved project budgets for 2005/06.

Aquaculture Trust Fund

Balance at the beginning of the Financial Year 217 217 Add: Revenue - Sales of goods and services 501 501 Investment income 11 11 Grants and Contributions 100 100 612 612

86 NSW Department of Primary Industries ANNUAL REPORT 2004–05 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

Less: Contribution to Department activities* (648) (648) Other (Bad debts expense) (4) (4) (652) (652)

Balance at the end of the reporting period 177 177

* All expenditure by the Department on existing activities related to aquaculture is funded from a combination of Consolidated revenue user charges and a contribution from the Aquaculture Trust Fund. As a result moneys allocated from this trust fund are not 'project specific' and thus there is no carry forward into the next financial year.

Charter Fishing Trust Fund Balance at the beginning of the Financial Year 75 75 Add: Revenue - Sales of goods and services 120 120 Investment income 3 3 123 123

Less: Projects Funded* (105) (105) (105) (105)

Balance at the end of the reporting period 93 93

* Of the 'projects funded' in 2005 and in prior periods an amount of $0.088m was unexpended at 30 June 2005. This amount will be carried forward into the various approved project budgets for 2005/06.

32. ADMINISTERED ASSETS AND LIABILITIES Consolidated Parent Actual Actual 2005 2005 $'000 $'000

The Department administers certain activities on behalf of other bodies. The assets and liabilities associated with these activities are listed below:

Administered Assets Receivables - Loan made to the Administrator of NSW Grains Board 2 743 2 743 Receivables - Royalties (less Provision for Doubtful Debts) 100 100 Receivables - Fisheries 94 94 2 937 2 937 Administered Liabilities Payables - Royalties 1 227 1 227 Payables - NSW Treasury Corporation 2 966 2 966 4 193 4 193 Creditors include an amount of $587 relating to Crown Revenue collected but not remitted to Treasury as at 30 June 2005.

33. ADMINISTERED REVENUES Consolidated Parent Actual Actual 2005 2005 $'000 $'000

The following monies have been collected on behalf of the Crown Entity and forwarded to NSW Treasury:

Fees 3 224 3 224 Fines 646 646 Licences 436 436 Plant Disease Inspections 50 50

NSW Department of Primary Industries ANNUAL REPORT 2004–05 87 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

Reimbursement of Employers 210 210 Superannuation Unclaimed Monies 39 39 Payment of Long Service Leave 311 311 Royalty on Minerals 396 348 396 348

401 264 401 264 The following monies have been collected on behalf of the NSW Treasury Corporation: Repayments of NSW Grains Board Loan 3 328 3 328

34. MARINE PARKS FUND

The Department administers jointly with the Department of Environment and Conservation certain assets on behalf of the Marine Parks Authority. These assets are the areas covered by the four established marine parks at Jervis Bay, Solitary Islands, Cape Byron and Lord Howe Island. The Marine Parks Fund was established under the provisions of the Marine Parks Act 1997. The receipts and payments of the Fund administered by the Department in 2004-2005 were $0.071m and zero respectively leaving a balance of $0.143m as at 30 June 2005 (balance as at 30 June 2004 was $0.072m).

35. FINANCIAL INSTRUMENTS

Parent Collectability of trade debtors is reviewed on an ongoing basis. Debts Financial Instruments give rise to situations that create a financial asset which are known to be uncollectable are written off. A provision for of the Department and a financial liability (or equity instrument) of the doubtful debts is raised when some doubt as to collection exists. The other party, or vice versa. For the Department, these financial instruments credit risk is the carrying amount (net of any provision for doubtful debts). include cash, receivables, investments and payables. No interest is earned on trade debtors. The carrying amount approximates net fair value. Sales are made on thirty day terms. The value of Receivables The specific accounting policy in respect of each class of such financial as at 30 June 2005 was $13.050m. instruments is stated hereunder: Investments (Unlisted Shares) 1. Classes of financial instruments, recorded at cost, comprise cash and payables In order for the Department to sell certain commodities, it is obliged to have shares in various co-operatives. Depending upon the trading results, 2. Classes of financial instruments, recorded at other than cost, comprise bonus shares are distributed by these co-operatives periodically. The receivables that are recorded at cost less the balance of the provision shares cannot be redeemed, unless the Department opts not to supply for doubtful debts. Investments (Unlisted Shares) are brought to commodities to these co-operatives in the future. The carrying amount account at cost and revalued annually to reflect the issue of bonus approximates net fair value. The value of Investments (Unlisted Shares) as shares at 30 June 2005 was $0.559m. There is no interest rate risk associated with All financial instruments, including revenues, expenses, or other cash these investments. (refer note 14.) flows arising from instruments, are recognised on an accruals basis. Payables Cash Liabilities are recognised for amounts due to be paid in the future for Cash comprises cash on hand and bank balances within the Treasury goods and services received, whether or not invoiced. Amounts owing to Banking System. Interest is earned on daily bank balances at the monthly suppliers (which are unsecured) are settled in accordance with the policy average NSW Treasury Corporation (TCorp) 11am unofficial cash rate, set out in Treasurer’s Direction 219.01. If trade terms are not specified, adjusted for a management fee to Treasury. The value of cash as at 30 payment is made no later than the end of the month following the June 2005 was $69.682m. month in which an invoice or a statement is received. Treasurer’s Direction Receivables 219.01 allows the Minister to award interest for late payment. The rate of interest applied during the year was zero. The value of Payables as at 30 All trade debtors are recognised as amounts receivable at balance date. June 2005 was $14.547m. (refer note 19.)

88 NSW Department of Primary Industries ANNUAL REPORT 2004–05 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

Treasury Advance The Department has received Treasury Advances of $38.200m from the New South Wales Treasury. These Advances are: • Ovine Johnes Disease $4.200m • Locusts Eradication Program $14.000m • Commercial Fishers Buyout $20.000m The interest rate attached to these Advances is the Treasury Corporation long-term bond rate. The repayment schedule for the outstanding balances is as follows: 2004-2005 Less than one year $5.615m One to five years $17.038m Greater than five years $13.075m Forests NSW

Recognised Financial Instruments Accounting Policies Terms and Conditions

i) Financial Assets

Cash Short-term deposits are stated at net realisable Cash is deposited at call value. Interest is recognised in the Statement of Financial Performance when earned Receivables Trade receivables are carried at nominal amounts Credit sales are generally on due less any provision for doubtful debts. 7, 14 or 30 day settlement terms. A provision is recognised when the collection of the amount is no longer probable. Investments Investments are stated at net realisable value. All Investments during the year were Interest and movements in market value are at call recognised in the income and expenditure statement when earned

ii) Financial Liabilities

Accounts Payable and Liabilities are recognised for amounts to be paid Trade liabilities are settled within 30 days Other Creditors in the future for goods and services received. of the month in which they are incurred in line with NSW Government policy. Interest Bearing Liabilities for loans are recognised at the A liquidity risk policy has been adopted by Liabilities time of entering into the arrangement. which no more than 25% of the total debt matures in any one year. All borrowings are sourced from the NSW Treasury Corporation

NSW Department of Primary Industries ANNUAL REPORT 2004–05 89 FINANCIAL STATEMENTS

Notes to and forming part of the financial statements

36. JOINT VENTURE AGREEMENT S

Par en t In July 2001, the Treasur er of NSW g rant ed appr o val f or the f ormer Department of Mineral Resour ces t o ent er int o a joint v entur e with the C ommon w ealth and nine other participants , entitled the C ooperativ e Resear ch C entr e f or Landscape En vir onments and Mineral Exploration ( CRC LEME). T he joint v entur e is a non commer cial , non pr ofit entity established t o conduct strat eg ic r esear ch, education and training in r egolith geoscience and its applications in mineral exploration and en vir onmental issues . T he CRC LEME has a t otal budget of up t o $124 million o v er sev en y ears with dir ect contributions fr om the participants of $10 million, in kind contributions of $94 million and a C ommon w ealth Go v ernment g rant of $20 million. T he A gency is t o contribut e $1 million in cash and mor e than $2 million in kind o v er this period . T her e ar e no assets arising fr om the A gency’s participation in the joint v entur e or an y liabilities arising fr om its int er est in the joint v entur e . T he A gency does not ha v e a per centage shar e in the output or assets of the joint v entur e and no r ev enue is pr obable . T he A gency is also engaged with sev eral other joint v entur es . T hese include the A ustralian C ott on C o-Operativ e Resear ch C entr e , T he A ustralian Sheep Industry C o-Operativ e Resear ch C entr e , the C o-Operativ e Resear ch C entr e f or P lant Based Dryland Salinity, and the Quality Wheat C o-Operativ e Resear ch C entr e . END OF AUDITED FINANCIAL STATEMENT S

90 NSW Department of Primary Industries ANNUAL REPORT 2004–05 9

APPENDICES

1. Executive performance 92 2. Positions of NSW DPI executives as members of significant statutory bodies and inter-departmental committees 97 3. Advisory bodies and committees 98 4. Customer service 100 5. Freedom of information 101 6. Privacy management 102 7. Promotion and communications 102 8. Staff statistics 103 9. Equal employment opportunity 105 10. Code of conduct 107 11. Overseas travel 111 12. Legislation and legal change 116 13. Significant judicial decisions 118 14. Waste reduction, recycling and energy management 119 15. Consultants 119 16. Payment of accounts 120 17. Major assets and capital works 121 18. Land disposal 121 19. Risk management and insurance 122 20. Fisheries Trust Funds Report 123 21. Marine parks 131 22. Funds granted to non-government community organisations 132 23. Eastern Cod Recovery Plan 134 24. Evaluation and improvement 134 Index 135

Note: Forests NSW are subject to the reporting requirements of the Annual Reports (Statutory Bodies) Act, and are required to produce a separate annual report under that Act. Unless otherwise indicated, the information reported in these appendices does not include information relating to Forests NSW. APPENDICES

1. Executive performance

Barry Buffier (BRurSc (Hons), MEc) Director-General and Commissioner for Forests SES Level 8 Total remuneration package: $393 600 Mr Barry Buffier was appointed to the position of Director-General on the formation of the new Department of Primary Industries on 1 July 2004. The Minister for Primary Industries, the Hon. Ian Macdonald MLC, was satisfied that during 2004-05 Mr Buffier provided a high level of leadership in setting the strategic direction for the new organisation and met all the established performance criteria.

During the year the Director-General took the lead role in: • establishing an integrated organisation by effectively setting for industry development and extension services with input and communicating the strategic direction and priorities to staff from key industry representatives and key stakeholders • successfully relocating the Mineral Resources Division to • developing and implementing frameworks for sound corporate purpose-built accommodation in Maitland whilst maintaining a governance including corporate and strategic planning, regular high level of service delivery through the period of disruption reporting against established milestones and targets, risk • developing new revenue streams and achieving sustainable management and internal audit operating and capital expenditure savings in Forests NSW to • ensuring the responsible management of government and deliver improved dividend payments to Government other funding provided to the Department • successfully responding to a number of natural disasters and • successfully representing the interests of primary industries in emergencies including the drought and the largest plague NSW through participation in the Primary Industries Ministerial locust campaign on record. Council, the Primary Industries Standing Committee, the Natural Resource Management Ministerial Council, and the Natural Credit Card Certification Resource Management Standing Committee Credit card use in the NSW Department of Primary Industries • positioning NSW DPI science and research to meet stakeholder has been in accordance with the Premier’s Memoranda and expectations by conducting a stakeholder analysis of science Treasurer’s Directions. and research strategic directions, establishing priorities for research investment, and integrating science and research across NSW DPI businesses • integrating the delivery of services to the agriculture, fisheries Barry Buffier and private forestry industries and developing a strategic plan Director-General

Dr Richard F Sheldrake (BScAgr, MScAgr, PhD, FASM) Deputy Director-General, Agriculture, Fisheries and Regional Relations Chief Executive, NSW Rural Assistance Authority SES Level 7 Total remuneration package: $306 644 Period in position: July 2004 to June 2005 I am satisfied that Dr Richard Sheldrake met the performance criteria established for the position. Key tasks have been undertaken to achieve operational requirements and leadership has been provided to deliver outcomes consistent with government policy.

As Deputy Director-General, Agriculture, Fisheries and Regional Relations Dr Sheldrake was responsible for: • chairing the Department’s Risk Management Committee and • leading and managing the Department’s responsibilities in participating as a Board of Management representative on the relation to fisheries management, agricultural extension and Department’s Audit Committee education, animal welfare and the delivery of the Department’s • overseeing the Department’s primary industries export regional relations development initiative into China, Japan and Korea as Director, PRIMEX

92 NSW Department of Primary Industries ANNUAL REPORT 2004–05 APPENDICES

1. Executive performance (continued)

• coordinating management reviews of the Department’s • overseeing industry development initiatives in a wide range administration of fisheries closures, administration of abalone of industries with a view to promoting industry profitability and lobster shares and the future management of agriculture by adopting new technologies and opening up new markets. and fisheries environment and habitat management officers in Examples include the wine, horticulture, lamb, seafood regional NSW industries, and farm forestry • overseeing the introduction of PROfarm, the Department’s • representing the Department as a Deputy Commissioner on the initiative to ensure NSW farmers have access to up-to-date and Murray Darling Basin Commission and working closely with the relevant technical information Department of Infrastructure, Planning and Natural Resources • leading the Department’s implementation of the cattle national to ensure agriculture and resource management issues were livestock identification system (NLIS), which took full effect on harmonised July 2005, and planning implementation of the sheep NLIS in • at a national level, chairing the Primary Industries Health January 2006 Committee, participating as a member of the National Exotic • working closely with the Ovine Johne’s Disease Advisory Disease Simulation Exercise Steering Committee (Eleusis) and Committee and overseeing the development of the Ovine representing the interests of the state and territory stakeholders Johne’s Disease transaction levy which commenced on as a Director of Animal Health Australia Ltd. 1 October 2005

Alan Coutts (BCom, DipEd) Deputy Director-General, Mineral Resources SES Level 6 Total remuneration package: $257 000 Period in position: July 2004 to June 2005 I am satisfied that Mr Alan Coutts met the performance criteria established for the position. Key tasks have been undertaken to achieve operational requirements and leadership has been provided to deliver outcomes consistent with government policy.

As Deputy Director-General, Mineral Resources Mr Coutts was responsible for: • assisting the Director-General in the overall management of • The Deputy Director-General also oversaw the Department’s the new department and providing leadership of the Mineral contribution to the Wran Review of Mine Safety, along with the Resources Division of the Department Executive Director, Biosecurity, Compliance and Mine Safety. • Member of the Board of Management, member of the Budget A number of significant mining projects received approval over Committee, Risk Management Committee, Corporate Services the period and the Department commenced its largest airborne Reform Committee and Audit Committee. geophysical survey in the State’s far west with a $1.6 million contract awarded in March this year. • Chairman, Mine Subsidence Board and Member, Coal Compensation Board. • Amendments were made to the Coal Compensation Scheme to bring about savings and to enable the scheme to be completed • Member of the Standing Committee of Officials for the by March 2007. A white paper proposing amendments to Ministerial Council on Minerals and Petroleum Resources. the environmental provision of the Mining Act 1992 was also • Key achievements include the successful relocation of the approved by Cabinet and released for public consultation. Mineral Resources staff from St Leonards to Maitland in • The Deputy Director-General also paid particular attention to November last year and the opening of the new Mine Safety the resolution of a range of strategic issues, such as land use, Technology Centre in nearby Thornton. The Mineral Resources environmental management, stakeholder liaison and whole- Division has undergone significant change over the reporting of-government approaches to approvals and natural resource period and a number of new staff have replaced those who left management. during the Maitland relocation. Prudent business continuity planning in the lead up to the relocation ensured the Division continued to service its stakeholder needs

NSW Department of Primary Industries ANNUAL REPORT 2004–05 93 APPENDICES

1. Executive performance (continued)

Peter Duncan Chief Executive, Primary Industries Trading incorporating Forests NSW SES Level 6 Total remuneration package: $250 000 Period in position: July 2004 to June 2005 The Chief Executive, Peter Duncan, is accountable to me for performing a variety of functions as required under the Forestry Act 1916 and for implementing government policy. I am satisfied that Mr Peter Duncan met the performance criteria established for the position. Key tasks have been undertaken to achieve operational requirements and leadership has been provided to deliver outcomes consistent with government policy.

Achievements over the last 12 months include: • delivery of the ‘2004 mini budget’ distribution of $32.5 million to • establishment and re-establishment of 8020 hectares of Government plantations. This includes 850 hectares through a Managed • integration of Forests NSW as a trading enterprise within the Investment Scheme with Australian Forest Management Pty Ltd, NSW Department of Primary Industries a subsidiary of Rothschild • development and roll-out of a new comprehensive safety • finalisation of Wood Supply Agreements for high quality sawlogs management system across Forests NSW on the North Coast following the 2003 National Parks decision • establishment of the Business Review Unit (BRU) to consolidate • development and public exhibition of draft Ecologically and enhance work already commenced on improved financial Sustainable Forest Management plans covering the next five systems and controls throughout the organisation. The BRU and years senior management team have developed strategies to meet • development of the Living, working, playing … forests recreation additional mini budget dividends, for the next four years strategy to encourage safe and responsible use of state forests • a revenue of more than $1.5 million from the world’s first trade for recreational purposes. of carbon credits arising from sequestration in forests in an approved greenhouse gas abatement scheme

Dr Michael Lawrence Curll (PSM, WDA, BRurSc, MAgSc, PhD) Deputy Director-General, Science and Research SES Level 6 Total remuneration package: $245 000 Period in position: July 2004 to June 2005 I am satisfied that Dr Mike Curll met the performance criteria established for the position. Key tasks have been undertaken to achieve operational requirements and leadership has been provided to deliver outcomes consistent with government policy.

As Deputy Director-General, Science and Research Dr Curll was responsible for: • assisting the Director-General in planning and management of innovation, systems research, health sciences, production the Department to partner in the development of profitable and research, natural resources research and research operations sustainable primary industries building vibrant communities • developing the Primary Industries Science and Research Strategic • leading and managing all aspects of agriculture, forestry, Directions statement involving a review of research capacity, fisheries and mineral resources science and research to achieve a framework for investment and identification of research government, industry and community expectations of public priorities and private sector investment in primary industries science and • ensuring effective relationship management with key technology stakeholders and investment partners, including creation • establishing new service delivery arrangements for science and of formal alliances with university partners and research research through creation of a branch structure of rural corporations, and support to the Ministerial Advisory Council on

94 NSW Department of Primary Industries ANNUAL REPORT 2004–05 APPENDICES

1. Executive performance (continued)

Primary Industries Sciences and the NSW Agricultural Advisory • building the research capacity of the Department through Council on Gene Technology development and support of Towards 2020, a major program • overseeing the development of science and research policy aimed at reinvesting funds into new facilities and technologies at state, national and international levels, including innovative at strategically located centres across NSW. science solutions to enhance public policy

Renata Brooks (BVSc (Hons), Grad Cert Bioethics) Executive Director, Biosecurity, Compliance and Mine Safety SES Level 5 Total remuneration package: $207 500 Period in position: July 2004 to June 2005 I am satisfied that Ms Renata Brooks met the performance criteria established for the position. Key tasks have been undertaken to achieve operational requirements and leadership has been provided to deliver outcomes consistent with government policy.

As Executive Director, Biosecurity, Compliance and Mine Safety • overseeing delivery of major responses to the freshwater aquatic Ms Brooks was responsible for: weed, salvinia, through a $1.3 million program, and to the • leading and managing the Department’s responsibilities in marine weed, Caulerpa taxifolia relation to biosecurity, emergency response, compliance and • working with the Rural Lands Protection Board system to mine safety policy and performance establishing a more effective regional framework for the delivery • chairing the Human Resources Committee and sponsoring of animal biosecurity outcomes development of a women’s employment strategy as a member • overseeing the development of legislation to underpin the of the Department’s Board of Management Government’s policy approach to mine safety and biosecurity • overseeing the delivery of the largest locust control campaign in • leading the implementation of an integrated approach to NSW history in collaboration with Rural Lands Protection Boards, biosecurity, which adopts best practice approaches to dealing landholders and other agencies, saving $1 billion worth of crops with risks to animal, plant and aquatic biosecurity and risks at a cost of $21.3 million posed by chemicals • commencing integration of NSW DPI compliance functions • through the NSW Drought Coordinator, coordinating the through structural and operational changes, including Government’s response to drought, including the distribution of processes to ensure consistent and transparent approaches to nearly $22 million in grants and subsidies. enforcement

Wendy Stamp (BA (Hons), MAdmin) Executive Director, Strategy, Policy and Communications SES Level 5 Total remuneration package: $198 500 Period in position: July 2004 to June 2005 I am satisfied that Ms Wendy Stamp met the performance criteria established for the position. Key tasks have been undertaken to achieve operational requirements and leadership has been provided to deliver outcomes consistent with government policy.

As Executive Director, Strategy, Policy and Communications • facilitating strategic communications with internal and external Ms Stamp was responsible for: stakeholders and promoting the whole of the Department and • taking a lead role in translating government priorities and primary industries industry needs into the Department’s policy and corporate • leading the internal and external communication process that agenda explained the rationale for the establishment of the new NSW • coordinating whole-of-government approaches and managing Department of Primary Industries strategic and contentious issues NSW Department of Primary Industries ANNUAL REPORT 2004–05 95 APPENDICES

1. Executive performance (continued)

• leading the NSW DPI corporate planning process. The process • coordinating a significant legislative program including the was instrumental in the integration of the four former agencies provision of support for the passage of six bills as well as into the new department and in setting and communicating managing a significant number of regulation reviews the overall strategic direction • contributing to the development of the Socio-Economic • developing the role and structure of new Ministerial advisory Assessment Guide for Catchment Management Authorities councils for the primary industries portfolio to facilitate used to assess the socio-economic impacts of specific effective peak body and industry input to key aspects of the investment proposals Department’s policies and programs • contributing to the development and roll-out of a major • evaluating industry impacts of severe drought to gain change initiative called Building DPI, which involved staff in Commonwealth exceptional circumstances relief for as many understanding and shaping the new Department’s vision, drought-affected NSW farmers as possible strategies and values. • commencing integration of the former agencies’ websites to provide a ‘one stop shop’ for all primary industry stakeholders • developing a new NSW DPI intranet for use by all staff to assist with communication of all aspects of the Department’s policies, programs and activities

Dr Alan Gleeson (BSc (Hons), MStat, PhD) Executive Director, Corporate Services SES Level 5 Total remuneration package: $215 000 Period in position: July 2004 to June 2005 I am satisfied that Dr Alan Gleeson met the performance criteria established for the position. Key tasks have been undertaken to achieve operational requirements and leadership has been provided to deliver outcomes consistent with government policy.

As Executive Director, Corporate Services Dr Gleeson was responsible for: • negotiation of an agreement with the unions on a Workforce • consolidation of three legal sections of former agencies into Management Plan, then implementing it to achieve savings via a single Legal Services Branch operating from three locations a general offer of voluntary redundancy – Orange, Wollstonecraft and Maitland • lncorporation of the payroll and finance system from the • development and implementation of an Assets Strategic Plan previous Department of Mineral Resources into the former for NSW DPI, enabling disposal of assets surplus to needs and NSW Agriculture systems prior to the relocation of staff from re-investment of proceeds to upgrade facilities and equipment St Leonards to Maitland in November 2004 • co-locations in towns and cities where NSW DPI has more than • consolidation of three separate finance systems into one (SAP) one office, which will lead to savings of $1 million per year in and three human resources systems into one (AURION), using rent only internal staff and resources, to go live by 1 July 2005 • consolidation of the information technology network, with • consolidation of the Information Technology Help Desk from standardised firewall protection and PC anti-virus systems the three former agencies of Agriculture, Fisheries and Mineral • rationalisation of telecommunication contracts, generating net Resources into a single Helpdesk based at Orange head office savings of $800 000 over two years. • development and implementation of new Corporate Services policies and procedures in areas such as motor vehicle fleet management, PC fleet management, financial administration and recruitment

96 NSW Department of Primary Industries ANNUAL REPORT 2004–05 APPENDICES

2. Positions of NSW DPI executives as members of significant statutory bodies and inter-departmental committees

Statutory body / inter-departmental NSW DPI executive Position Statutory body / inter-departmental NSW DPI executive Position committee committee

Animal Health Australia Board Dr Richard Sheldrake Director National Monitoring System Steering Mr Barry Buffier Member Animal Health Australia Steering Dr Richard Sheldrake Member Committee Committee National Wine & Grape Industry Dr Richard Sheldrake Chair Australian Gene Technology Dr Michael Curll Member Centre Council Standing Committee Natural Resources & Environment CEO Mr Barry Buffier Member C B Alexander Agricultural College Mr Barry Buffier Chair Cluster Group Foundation Natural Resources Advisory Council Mr Barry Buffier Member Centennial Parklands Foundation Mr Peter Duncan Governor Natural Resources Information Dr Richard Sheldrake Member Centre for Coastal Agricultural Dr Michael Curll Member Needs Committee Landscapes Board Natural Resources Management Mr Barry Buffier Member CEO Forum on Major Infrastructure Mr Barry Buffier Member Standing Committee & Development Approvals Natural Resource Management Joint Dr Richard Sheldrake Member CEOs’ Network Meeting Mr Barry Buffier Member Steering Committee Chief Executives Committee Mr Barry Buffier Member NSW Centre for Agricultural Dr Michael Curll Chair Genomics Board Coal Compensation Board Mr Alan Coutts Member NSW/Guangdong Joint Economic Dr Richard Sheldrake Member Community Conservation Council Mr Barry Buffier Member Committee Cooperative Research Centre for Dr Michael Curll Member NSW-NZ Biotechnology Dr Michael Curll Member Greenhouse Accounting Advisory CollaborationWorking Group Council NSW Rural Assistance Authority Board Dr Richard Sheldrake Member EH Graham Centre for Agricultural Mr Barry Buffier Chair Innovation Board Dr Michael Curll Member Parklands Foundation Limited Mr Peter Duncan A/Chair (Sydney Olympic Park) Enterprise Grains Australia Board Dr Michael Curll Chair Primary Industries Health Committee Dr Richard Sheldrake Chair Exercise Eleusis Steering Committee Dr Richard Sheldrake Member Ms Renata Brooks Member Faculty of Rural Management, Dr Richard Sheldrake Member Primary Industries Innovation Dr Michael Curll Member University of Sydney Advisory Centre Board Council Primary Industries Standing Mr Barry Buffier Member Farrer Memorial Trust Mr Barry Buffier Chair Committee Dr Richard Sheldrake Member Dr Richard Sheldrake Trustee Rural Women’s Network State Mr Barry Buffier Chair Forestry and Forest Products Mr Peter Duncan Member Advisory Committeer Committee Ministerial Council of Primary Industries Standing Committee of Officials of Mr Alan Coutts Member the Ministerial Council on Mineral Government Asset Management Mr Peter Duncan Member and Petroleum Resources Committee Seafood Industry Advisory Council Mr Barry Buffier Member Helen Newton Turner Medal Trust Mr Barry Buffier Chair Standing Disease Control Advisory Ms Renata Brooks Member Horticultural Congress Trust Mr Barry Buffier Chair Committee Marine Parks Authority Board Mr Barry Buffier Chair State Emergency Management Ms Renata Brooks Member McGarvie Smith Institute Ms Renata Brooks Trustee Committee Mine Subsidence Board Mr Alan Coutts Chair Sydney Olympic Park Authority Mr Peter Duncan Member Parklands Advisory Council Ministerial Advisory Council on Dr Michael Curll Member Primary Industries Sciences Water CEOs’ Committee Dr Richard Sheldrake Member Murray-Darling Basin Commission Dr Richard Sheldrake Commissioner National Emergency Animal Disease Mr Barry Buffier Member Management Group National Emergency Plant Pest Mr Barry Buffier Member Management Group

NSW Department of Primary Industries ANNUAL REPORT 2004–05 97 APPENDICES

3. Advisory bodies and committees at 30 June 2005

NSW Department of Primary Industries relies on a network of management of endemic and exotic pests and diseases; and advises more than 50 advisory, consultative and other statutory bodies on potential research and development opportunities that can be representing our stakeholder groups. The peak bodies representing delivered through the National Wine and Grape Industry Centre, our primary industries are: Wagga Wagga. The members are:

Dairy Industry Conference Mr Greg Jones (Chair) Ms Elizabeth Antonopolous The Dairy Industry Conference investigates, reviews and advises the Mr Chris Barnes Minister for Primary Industries on issues regarding the dairy industry. Mr Darren DeBortoli Members of the conference are: Mr Trevor Drayton Mr Ron Della Vedova (Chair) Mr Ken Edwards Ms Joy Allen Mr Loftus Harris Mr Adrian Drury Mr Hans Heilpern Mr Angus Gidley Baird Mr Dick Hilder Mr Bob Grey Mr Doug Hocking Mr Stephen Ellaway Ms Glenda Hoffman Ms Janet Moxey Mr David Lowe Mr Terry Outtrim Mr David O’Dea Mr Barry Paff Mr Stephen Roberts Mr Winston Watts Mr Peter Robson Mr Geoff Scollary Ministerial Advisory Council on Primary Industries Mr Bruce Tyrrell Sciences Mr Doug McWilliam The Ministerial Advisory Council on Primary Industries Sciences Pork Industry Taskforce advises the Minister for Primary Industries on the alignment of NSW DPI’s research portfolio with stakeholder needs and state and national The Pork Industry Taskforce provides the government with strategic priorities; reviews and recommends strategies to ensure the optimal advice on issues relating to the pork industry in NSW, including communication and uptake of research; and advises on the Towards market conditions, investment, potential for industry growth, and 2020 science and research reinvestment program. The members of research and development opportunities. The members are: the council are: Mr Ron Pollard (Chair) Dr John Keniry (Chair) Mr Tim Burfitt Prof Derek Anderson Mr Ted Campbell Mr David Anthony Mr Malcolm Gett Mr Richard Bootle Mr Paul Judge Dr Mike Curll Ms Jane Littlejohn Dr Stefan Fabiansson Mr Alex McGilvray Dr TJ Higgins Ms Kathleen Plowman Dr Steven Kennelly Ms Sally Walker Mr John Maitland Ms Janet Moxey Poultry Meat Industry Committee Mr Mal Peters The Poultry Meat Industry Committee, established under the Poultry Prof Jim Pratley Meat Industry Act 1986, determines base rates for batch poultry, Mr Grahame Turk settles disputes between processors and growers, and makes reports Dr John Williams or recommendations to the Minister on matters relating to the Mr Peter Zed poultry meat industry. The members are:

NSW Wine Industry Research and Development Advisory Mr Stephen Carroll (Chair) Council Mr John Camilleri Mr John Cordina The NSW Wine Industry Research and Development Advisory Council Mr Anthony D’Andrea advises the Minister for Primary Industries on Development and Mr Gary Ekert export opportunities for the NSW wine industry; reports on industry

98 NSW Department of Primary Industries ANNUAL REPORT 2004–05 APPENDICES

3. Advisory bodies and committees at 30 June 2005 (continued)

Mr Ashley Etherington Geological Survey Advisory Committee Mr Chris Freney Intensive Agriculture Consultative Committee Ms Lynne Gallagher Lobster Management Advisory Committee Mr Brian McKelvey Marine and Estuarine Recreational Charter Management Mr Peter Pulley Advisory Committee Mr James Samphier Metalliferous Safety Advisory Committee Mr Andrew Stevenson Minerals Consultative Committee Mr Joseph Vella Mr Alan Wilson Mine Safety Advisory Council Mr John Witherspoon NSW Agricultural Advisory Council on Gene Technology NSW Marine Parks Advisory Committee Seafood Industry Advisory Council NSW National Livestock Identification System Advisory The Seafood Industry Advisory Council advises the Minister for Committee (Cattle) Primary Industries on the current and future development and NSW National Livestock Identification System (Sheep) sustainable management of the wild harvest and aquaculture Implementation Advisory Committee seafood industries. Members of the council are: Non-Indigenous Animals Advisory Committee Mr John Roach (Chair) Noxious Weeds Advisory Committee Mr Barry Buffier Ocean Hauling Management Advisory Committee Mr Graeme Byrnes Ocean Trap and Line Management Advisory Committee Mr Ian Charles Ocean Trawl Management Advisory Committee Mr George Davey Ovine Johne’s Disease Industry Advisory Committee Mr Jim Drinkwater Oyster Research Advisory Council Mr Ron Firkin Pest Animal Council Mr Nicholas Georgouras Mr Don Johnson Recreational Fishing Freshwater Management Planning Committee Ms Megan Kessler Recreational Fishing Freshwater Trust Expenditure Committee Mr Bill Litchfield Recreational Fishing Saltwater Management Planning Committee Mr Bill Pearce Recreational Fishing Saltwater Trust Expenditure Committee Assoc. Prof. Stephan Schnierer Rural Women’s Network State Advisory Committee Ms Donna Smythe Share Appeal Panel Mr Paul Sullivan Standing Disease Control Advisory Committee Mr Tony Troup State Minerals Advisory Council Mr Graeme Turk Total Allowable Catch Setting and Review Committee Other advisory bodies Other (industry) bodies Abalone Management Advisory Committee Banana Industry Committee Advisory Council on Recreational Fishing Murray Valley Wine Grapes Industry Development Committee Animal Research Review Panel Rice Marketing Board Animal Welfare Advisory Council Riverina Citrus Bovine Johne’s Disease Summit Executive Committee Wine Grapes Marketing Board Coal Safety Advisory Committee Coalfield Geology Council Derelict Mines Committee Director General’s Animal Care and Ethics Committee Estuary General Management Advisory Committee Estuary Prawn Trawl Management Advisory Committee Exhibited Animals Advisory Committee Extractive Industry Safety Advisory Committee Fisheries Scientific Committee

NSW Department of Primary Industries ANNUAL REPORT 2004–05 99 APPENDICES

4. Customer service

The NSW Department of Primary Industries aims to deliver quality customer services and offers a full range of services from its head office and a number of regional centres. All requests for information or assistance are met directly and promptly or are referred to the most appropriate person as required. Requests are dealt with as soon as practicable, normally within five working days of receipt for written requests. A contact name, address and telephone number for future enquiries are provided in all correspondence. Technical information is timely and accurate and sources of additional information are provided where appropriate. All staff dealing with the public are highly trained and competent in their area of expertise. Sensitive and confidential material is handled in a manner that ensures that the rights of the individual and the requirements of NSW DPI are considered.

Consumer response Stakeholders and the community have a wide range of avenues through which to offer feedback to the Department. These include: • contacting any of our many regional centres and offices, compliance staff or extension officers • providing comments in writing • participating in public forums which provide detailed information on specific initiatives • emailing the Department through our website at www.dpi.nsw.gov.au. NSW DPI operates an extensive formal stakeholder consultative network with several advisory committees which report directly to the Minister. These committees have independent chairs, transparent procedures and publicly available minutes. NSW DPI staff work closely with the primary industries that they serve. To effectively manage concerns regarding departmental operations, local managers are responsible for accepting and dealing with minor issues. Where an issue cannot be dealt with locally, it is referred to the most appropriate senior manager. General correspondence should be sent to: NSW Department of Primary Industries Locked Mail Bag 21 ORANGE NSW 2800.

100 NSW Department of Primary Industries ANNUAL REPORT 2004–05 APPENDICES

5. Freedom of information (FOI)

Statement of Affairs In accordance with Section 14 of the Freedom of Information Act 1989 SECTION G: BASIS OF DISALLOWING OR RESTRICTING ACCESS (FOI Act), the Department of Primary Industries Annual Report is to Personal Other be taken as its Statement of Affairs. G1 Section 19 (application incomplete, - - To apply under the FOI Act or to access information generally contact wrongly directed) the: G2 Section 22 (deposit not paid) - 3 Freedom of Information Officer G3 Section 25 (1) (a1) (diversion of - resources) NSW Department of Primary Industries G4 Section 25 (1) (a) (exempt) - 20 PO Box 21, CRONULLA NSW 2230 G5 Section 25 (1) (b) (c) (d) (otherwise - - Tel: 02 9527 8437 Fax: 02 9544 1934 available) G6 Section 28 (1) (b) (documents not 2 2 SECTION A: NUMBER OF NEW FOI REQUESTS held) G7 Section 24 (2) (deemed refused, - - Personal Other Total over 21 days) A1 New (including transferred in) 10 50 60 G8 Section 31 (4) (released to medical - - A2 Brought forward 6 6 practitioner) A3 Total to be processed 10 56 66 G9 Total 2 25 A4 Completed 10 50 60 A5 Transferred out - 3 3 A6 Withdrawn - 1 1 SECTION H: COSTS AND FEES OF REQUESTS PROCESSED A7 Total processed 10 54 64 Assessed FOI fees A8 Unfinished (carried forward) - 2 2 costs received H1 All completed requests $10 290 $4506 SECTION B: RESULTS OF FOI REQUESTS Personal Other SECTION I: DISCOUNTS ALLOWED B1 Granted in full 8 25 B2 Granted in part - 15 Personal Other B3 Refused 2 10 I1 Public interest - 2 B4 Deferred - - I2 Financial hardship – pensioner/child 1 - B5 Completed 10 50 I3 Financial hardship – non-profit organisation - 1 I4 Total 1 3 SECTION C: MINISTERIAL CERTIFICATES I5 Significant corrections of personal records - - No Ministerial Certificates were issued in 2004-05. SECTION J: DAYS TO PROCESS Personal Other SECTION D: FORMAL CONSULTATION J1 0-21 days 9 27 Issued Total J2 22-35 days 1 18 D1 Number of requests 36 64 J3 Over 35 days - 9 requiring formal consultation(s) J4 Total 10 54

SECTION E: AMENDMENT OF PERSONAL RECORDS SECTION K: PROCESSING TIME There were no requests for amendment of personal records Personal Other in 2004-05. K1 1-10 hours 10 41 K2 11-20 hours - 8 K3 21-40 hours - 4 SECTION F: NOTATION OF PERSONAL RECORDS K4 Over 40 hours - 1 There were no requests for notation of personal records in 2004-05. K5 Total 10 54

NSW Department of Primary Industries ANNUAL REPORT 2004–05 101 APPENDICES

5. Freedom of information (FOI) (continued)

SECTION L: REVIEWS AND APPEALS DETAILS OF INTERNAL REVIEW RESULTS L1 Number of internal reviews finalised 6 Grounds on which internal L2 Number of Ombudsman’s reviews finalised - review requested Personal Other L3 Number of District Court appeals finalised - Upheld Varied Upheld Varied L4 Access refused - - 1 1 L5 Deferred - - - - L6 Exempted matter - - 3 1 L7 Unreasonable charges - - - - L8 Charge unreasonably - - - - incurred L9 Amendment refused - - - - L10 Total - - 4 2

6. Privacy management

The Privacy Management Plan for NSW DPI was developed during Requests for access to personal information held by NSW DPI may be 2004-05. Information on the requirements and obligations of the made to: Privacy and Personal Information Protection Act 1998 (PPIPA) is to be Privacy Management Officer distributed within NSW DPI during 2005-06. NSW Department of Primary Industries No reviews were requested under Part 5 of PPIPA during 2004-05. PO Box 21 CRONULLA NSW 2230 Tel: 02 9527 8437 Fax: 02 9544 1934

7. Promotion and communications

NSW DPI communicates to a wide range of stakeholders through In cooperation with Rural Press Limited, the Department produces multiple channels. Our website is a key source of information and 65 000 copies each month of NSW Agriculture Today, a newspaper contains more than 40 000 individual documents. Most publications insert in The Land, which provides key research, extension, education can be readily accessed and downloaded free of charge. and management information to the rural community. Print and electronic publications include magazines and newsletters, Most publications are available from the Department’s website at recreational information, summaries of rules and regulations, www.dpi.nsw.gov.au or from the bookshop, telephone 1800 028 374 scientific and industry reports, conference proceedings, technical or email [email protected]. bulletins, posters, videos, web pages and CDs. Where necessary, Specific minerals publications are available by calling 02 4931 6669. relevant publications are made available in other languages. CB Alexander Agricultural College at Tocal/Paterson and Murrumbidgee College of Agriculture at Yanco also produce a wide Number of new publications in 2004-05 by category range of educational material which is available directly from the colleges, on the website or from the NSW DPI bookshop. Category Quantity We also communicate face-to-face with clients through broad Report or paper 39 extension services and participation in hundreds of field days, Book or booklet 77 community days and larger public events, and numerous Brochure or flyer 107 Magazine or newsletter 35 conferences. Factsheet 266 Display or poster 73 Electronic or multimedia publication 20 Total 617

102 NSW Department of Primary Industries ANNUAL REPORT 2004–05 APPENDICES

8. Staff statistics

All statistics shown in the following tables are expressed as equivalent full time (EFT) unless otherwise stated. As this is the first reporting year for the Department, comparisons with previous years are not shown.

Table 1. Staff numbers (EFT) 2004-05

Perm (excl Forests NSW) Other (excl Forests NSW) Perm (Forests NSW) Other (Forests NSW) Total

1802 747 954 85 3588

Table 2. EFT number of female and male staff within salary levels Greater Greater $0- $31 352- $41 178- $46 036- $58 254- $75 332- than than Salary level Total $31 352 $41 177 $46 035 $58 253 $75 331 $94 165 $94 165 $94 165 (Non-SES) (SES) Female (excl Forests NSW) 21 213 174 240 206 57 5 6 922 Male (excl Forests NSW) 21 223 154 300 509 299 104 17 1 627 Female (Forests NSW) 6 40 29 64 37 11 3 0 190 Male (Forests NSW) 10 291 154 105 166 57 59 7 849 Total 58 767 511 709 918 424 171 30 3 588

Table 3. Numbers and levels of SES staff 30 June 2005 SES level 1 2 3 4 5 6 7 8 Total Excl Forests NSW 2 5 4 5 3 2 1 1 23 Forests NSW 1* 5 1 7 Total 3 5 9 5 3 3 1 1 30 *Position located as a joint position within NSW DPI

Table 4. Numbers and levels of female SES staff 30 June 2005 SES level 1 2 3 4 5 6 7 8 Total Excl Forests NSW 1 1 2 2 6 Forests NSW 0 Total 1 1 2 2 6

NSW Department of Primary Industries ANNUAL REPORT 2004–05 103 APPENDICES

8. Staff statistics (continued)

Table 5. Percent of total NSW DPI staff by level TOTAL STAFF (Number) STAFF TOTAL Respondents Men Women people & Aboriginal Islanders Strait Torres whose first People not language was English with a disability People with a disability People work-related requiring adjustment

< $31 352 27 19% 59% 41% 20% $31 352 - $41 177 655 35% 59% 41% 3.5% 7% 11% 0.4% $41 178 - $46 035 448 49% 51% 49% 1.4% 9% 7% $46 036 - $58 253 708 67% 56% 44% 1.5% 15% 6% 0.2% $58 254 - $75 331 936 70% 72% 28% 0.2% 14% 7% 0.6% $75 332 - $94 165 417 79% 84% 16% 0.3% 9% 6% 0.3% > $94 165 (non SES) 180 84% 95% 5% 9% 6% 0.7% > $94 165 (SES) 29 66% 79% 21% 5% TOTAL 3 400 61% 66% 34% 1.2% 11% 8% 0.4% Estimated subgroup totals 2 084 2 242 1 152 20 245 150 8

Table 6. Percent of total NSW DPI staff by employment basis TOTAL STAFF (Number) STAFF TOTAL Respondents Men Women people & Aboriginal Islanders Strait Torres whose first People not language was English with a disability People with a disability People work-related requiring adjustment

Permanent full-time 2487 66% 75% 25% 1.0% 11% 8% 0.4% Permanent part-time 136 74% 10% 90% 4% 7% Temporary full-time 618 45% 52% 48% 1.1% 20% 4% 0.4% Temporary part-time 118 43% 19% 81% 18% 4% Contract - SES 29 66% 79% 21% 5% Contract - non-SES Training positions 12 25% 92% 8% Retained staff Casuals 316 32% 54% 46% 25% TOTAL 3716 59% 65% 35% 0.9% 13% 6% 0.3% Estimated subgroup totals 2186 2420 1296 20 271 150 8 Notes: 1. Table 5 does not include casual staff. 2. Figures for EEO groups other than women have been adjusted to compensate for the effects of non-response to the EEO data collection.

104 NSW Department of Primary Industries ANNUAL REPORT 2004–05 APPENDICES

9. Equal employment opportunity

EEO data collection Health management New employees are asked to provide their EEO data as part of the NSW DPI offers confidential professional counselling and support for induction program. staff in need through the Employee Assistance Program. The Mental Health First Aid Course is delivered across the HUMAN RESOURCES Department. Recruitment Performance management and EEO Staff were able to attend training courses in Selection Techniques, Career Enhancement and Interview Skills, and Career and Job Change Performance indicators for the implementation of EEO strategies during the year. are incorporated into the performance agreements of all Senior Executive Service Officers. NSW DPI continued to review and update recruitment policy and procedures with a view to assisting selection committees in Management and staff are encouraged to use the Performance undertaking their role effectively. Management and Development System to provide a fair and consistent framework by which individual performance can be Aboriginal employment and cultural awareness assessed. In line with NSW Government targets, NSW DPI’s Board of Accountabilities for people management, including the prevention Management is committed to achieving two per cent Aboriginal of harassment and bullying, are included in the performance employment within the Department. Current employment strategies agreements and position descriptions for executives, managers and are being reviewed to achieve this outcome. supervisors. This year we employed another Aboriginal person under the Flexible work practices Permanent Employment element of the Elsa Dixon Aboriginal Employment Program. The Department recognises the importance of flexibility for all employees to balance their work and personal responsibilities more Staff across NSW DPI had the opportunity to attend the Cultural effectively and offers job sharing, part-time work, career breaks, Heritage Aboriginal Awareness Program. The two-day program variable year employment, part year employment, and an enhanced includes information and training in Traditional Culture, Contact Flexible Working Hours Agreement. History and Contemporary Aboriginal Australia.

Fair policy and procedures ETHNIC AFFAIRS PRIORITY STATEMENT The Personnel Officer (Policy) has responsibility for policy Statement of Intent development and implementation in all areas of EEO to ensure: NSW DPI is committed to the Charter of Principles for a Culturally • fair practices in the workplace Diverse Society through the following Statement of Intent. • the making of unbiased management decisions This statement confirms the NSW Department of Primary Industries’ commitment to the New South Wales Charter of Principles for a • recognition and respect for the social and cultural backgrounds Culturally Diverse Society and reflects how services and facilities are of all employees accessible to all residents of this State. • employment practices that produce employee satisfaction and The NSW Department of Primary Industries is dedicated to the job commitment development of profitable, sustainable primary industries for NSW. • improved productivity by guaranteeing that the workplace is Recognising the cultural mix of consumers, the Department is efficient and free from bullying, harassment and discrimination. committed to ensuring that quality products meet the needs of a The Personnel Officer (Policy) is an executive member of the culturally diverse market. This relates particularly to the preparation Employment Equity Specialists Association (EESA) which meets of produce to meet specific religious and cultural needs. Training of monthly. EESA’s vision is to excel in providing networking and client service staff involves sessions highlighting the cultural diversity support services for its members and to influence strategic of our clientele and educating officers on how best to satisfy the decision-makers in the development, implementation and review of individual needs of all people. employment equity-related policies and strategies.

NSW Department of Primary Industries ANNUAL REPORT 2004–05 105 APPENDICES

9. Equal employment opportunity (continued)

All residents of NSW have access to the services and open facilities WOMEN of the NSW Department of Primary Industries. Wherever necessary, clients’ special needs will be addressed professionally, expeditiously Spokeswomen’s Program and in a manner appropriate to those needs. Sixteen women from around the State served as Spokeswomen this year, providing a valuable network for staff and assisting Ethnic Affairs Action Plan management with issues that affect women in the workplace. To implement our Statement of Intent NSW DPI will: Government Action Plan for Women • circulate information that will assist departmental staff to respond effectively to ethnic affairs issues. This is achieved by A review is underway to develop a strategy that best meets the disseminating information on cultural diversity to all staff, at employment needs of all women in the new department, with a view recruitment and induction and as part of ongoing training to improving gender equity. programs Development opportunities • enhance cultural diversity within NSW DPI by providing for the NSW DPI is sponsoring Lesley Skinner to undertake a Graduate special needs of job applicants in the recruitment process and Diploma in Public Administration, and is providing funds for by providing cross-cultural awareness training to all staff Maryanne Nolan, Clare Edwards and Janine Kermode to undertake • provide individual training for staff who have language the Public Sector Management Course. communication difficulties In 2004-05 approximately 1000 women attended training courses • respond to community needs for access to our resources by organised by the Department. ensuring that the staff list of Community Language Allowance Scheme (CLAS) recipients, and the languages spoken, is readily available to relevant staff to assist culturally diverse client groups.

If required, NSW DPI also translates corporate information for clients.

DISABILITY PLANS NSW DPI spent a total of $58 000 under the Department’s Disability Strategic Plan on building disabled access and a disabled toilet at the Wagga Wagga Pathology Laboratory and fitting the Richmond Office with a disabled ramp and a toilet and shower facility. Employees with a disability received ongoing support from the Human Resources Branch based on medical advice and consultation with rehabilitation providers. NSW DPI currently employs five disabled apprentices and one disabled trainee.

106 NSW Department of Primary Industries ANNUAL REPORT 2004–05 APPENDICES

10. Code of conduct

This code of conduct was developed during 2004-05. It will be government of the day in an impartial manner. In particular, reviewed and finalised following feedback from staff during the employees must comply with any relevant legislative, industrial and coming year. administrative requirements.

1 Introduction 3.2 Respect for people The people of NSW have a right to expect the business of the State Employees are to treat members of the public and their colleagues to be conducted with efficiency, fairness, impartiality and integrity. fairly and consistently, in a non-discriminatory manner with proper Public employment carries with it a particular obligation to the regard for their rights and obligations. In this regard, they should public interest. It requires standards of professional behaviour from perform their duties in a professional and responsible manner. employees that promote and maintain public confidence and trust in They should also ensure that their decisions and actions are the work of government departments. reasonable, fair and appropriate to the circumstances, based on a At the same time, people should not be subject to unnecessary consideration of all the relevant facts, and supported by adequate restrictions simply because they work in government. State documentation. employees have all the normal rights of employees under common 3.3 Integrity and public interest and statute law. Employees are to promote confidence in the integrity of public Although no one set of rules can answer all ethical questions, this administration by always acting in the public interest and not in their code of conduct provides the staff members of the NSW DPI with an private interest. ethical framework for their decisions, actions and behaviour. Employees should protect the reputation of public employers. They In this regard, it explains the principles covering appropriate conduct should not engage in activities, at work or outside work, that would in a variety of contexts and outlines the minimum standard of bring NSW DPI or the public service generally into disrepute. behaviour expected of public employees. 3.4 Responsive service 2 Relevant legislation Employees are to provide a relevant and responsive service to their The main legislation applying to staff members of NSW DPI is the clients and customers, providing all necessary and appropriate Public Sector Employment and Management Act 2002. assistance and fulfill the Department’s service performance The following legislation may also be relevant: standards. • Anti-Discrimination Act 1977 They should provide information promptly and in an appropriate • Child Protection (Prohibited Employment) Act 1998 format that is easy for the recipient to understand, and make sure • Commission for Children and Young People Act 1998 that the information is clear, accurate, current and complete. • Crimes Act 1900 3.5 Economy and efficiency • Freedom of Information Act 1989 Employees should keep up to date with advances and changes in • Independent Commission Against Corruption Act 1988 their area of expertise and look for ways to improve performance and • Industrial Relations Act 1996 achieve high standards of public administration. • Occupational Health and Safety Act 2000 They should use their authority and available resources and • Ombudsman Act 1974 information only for the work-related purpose intended. • Privacy and Personal Information Protection Act 1998 • Protected Disclosures Act 1994 3.6 Working with children • Public Finance and Audit Act 1983 Employees are responsible for creating a workplace where children • State Records Act 1998. and young people under 18 years are safe and protected from sexual, physical and emotional abuse, and neglect. Such abuse and neglect 3 General principles is an offence under the Commission for Children and Young People Act The community is entitled to expect the business of the state to 1998. be conducted with efficiency, economy, fairness, impartiality and Employees who are ‘prohibited persons’ as described under the integrity. To meet this expectation, staff members of NSW DPI need Child Protection (Prohibited Employment) Act 1998, are not permitted to follow the following principles when doing their work. to apply for, undertake or remain in child-related employment. All 3.1 Responsibility to the government of the day employees working in child-related employment must declare whether or not they are a prohibited person. Employees are to implement the policies and decisions of the

NSW Department of Primary Industries ANNUAL REPORT 2004–05 107 APPENDICES

10. Code of conduct (continued)

3.7 Dress standard employee and the Department Employees have a responsibility to project an appropriate image to • party political activities or making adverse political comments the public. that relate to the Department’s work. Clothing should be appropriate to the duties of the position, and An individual employee may often be the only person aware of reflect a professional image wherever possible. the potential for conflict. It is therefore their responsibility to avoid The NSW Government corporate wardrobe should be taken as an any financial or other interest that could compromise the impartial indicator of this standard. Faded jeans, sporting wear, track suits and performance of their duties, and disclose any potential or actual clothing with excessive logos should not be worn. conflicts of interest to their branch manager. Some employees are required to wear a uniform as part of their role If employees are uncertain whether a conflict exists, they should within the Department. This requirement is to be adhered to where discuss the related interest matter with their branch manager and stipulated. attempt to resolve any conflicts of interest that may exist. Employees whose work and/or workplace may expose them to To resolve any conflicts of interest that occur, or could occur, a range physical injury or adverse health effects must comply with the of options is available depending on the significance of the conflict. Department’s protective clothing policy. These options include: • recording the details of the disclosure and taking no further 4 Guide to ethical decision-making action where the potential for conflict is minimal or can be To assist in fostering a climate of ethical awareness, conduct and eliminated by disclosure or effective supervision decision-making in NSW DPI, employees may find it useful to refer to • the employee relinquishing the personal interest or consider, either by themselves or in consultation with others such as their peers or supervisor, the following points: • the employee transferring (at no disadvantage in their terms and conditions of employment) from the area of work or • Is the decision or conduct lawful? particular task where the conflict arises. • Is the decision or conduct consistent with government policy, Disputes over alleged conflicts of interest may be resolved through the objectives of NSW DPI and this code of conduct? the normal grievance handling procedures. • What will be the outcomes for the employee, work colleagues, the Department, and other parties? 4.2 Acceptance of gifts or benefits Employees should not accept a gift or benefit that is intended to, or • Do these outcomes raise a conflict of interest or lead to private likely to, cause them to act in a partial manner in the course of their gain at public expense? duties. • Can the decision or conduct be justified in terms of the public The Director-General may approve the acceptance of token gifts interest and would it withstand public scrutiny? or benefits under certain circumstances provided that there is 4.1 Conflicts of interest no possibility that the recipient might be, or might appear to be, Conflicts of interest exist when it is likely that an employee could be compromised in the process. influenced, or could be perceived to be influenced, by a personal Employees should advise their executive director if they believe they interest in carrying out their public duty. have been offered a bribe or if they have been offered or received a Conflicts of interest that lead to partial decision-making may favour or benefit. constitute corrupt conduct. Employees dealing with or having access to sensitive investigations Some related interests that may give rise to a conflict of interest or commercially sensitive information should be particularly alert to include: inappropriate attempts to influence them. • financial interests in a matter NSW DPI deals with or having 5 Discrimination and harassment friends or relatives with such an interest that the employee is Employees must not harass or discriminate against their colleagues aware of or members of the public on the grounds of sex, pregnancy, marital • personal beliefs or attitudes that influence the impartiality of status, race, colour, ethnic or ethno-religious background, descent, advice given nationality, age, disability, homosexuality, transgender or carers’ • personal relationships with the people NSW DPI is dealing responsibilities. with or investigating that go beyond the level of a professional working relationship • secondary employment that compromises the integrity of the 108 NSW Department of Primary Industries ANNUAL REPORT 2004–05 APPENDICES

10. Code of conduct (continued)

Such harassment or discrimination may constitute an offence under In these cases, comments made by employees should be confined the Anti-Discrimination Act 1977. to factual information and should not, as far as possible, express an In addition, employees must not harass or discriminate on the opinion on official policy or practice unless required to do so by the grounds of political conviction. circumstances of the particular situation (for example, when asked to do so in court). Managers must make sure that the workplace is free from all forms of harassment and discrimination. They should understand and apply Comments made on matters pertaining to union business by the principles of equal employment opportunity and ensure that members of unions in their capacity as a local delegate within the employees they supervise are informed of these principles. Managers Department or by union office holders employed by the Department should also take all necessary steps, such as training and other active are permissible under this code. measures, to prevent and deal with harassment and discrimination in 7 Protecting confidential information their work area. Official information must only be used for the work-related purpose 5.1 Fairness and equity intended and not for personal benefit. Unless authorised to do so by Issues or cases being considered by employees should be dealt with legislation, employees must make sure that they do not disclose or consistently, promptly and fairly. This involves dealing with matters use any confidential information without official approval. in accordance with approved procedures, in a non-discriminatory Unauthorised disclosures may cause harm to individuals or give an manner, and in conformity with natural justice. individual or an organisation an improper advantage. The integrity When using any discretionary powers, employees should ensure and credibility of NSW DPI may also be damaged if it appears unable that they take all relevant facts into consideration, have regard to to keep its information secure. the particular merits of each case, and not take irrelevant matters or All employees must make sure that confidential information in any circumstances into consideration. form (including computer files) cannot be accessed by unauthorised people, and that sensitive information is only discussed, within or 6 Public comment on the work of NSW DPI outside the Department, with people who are authorised and have a Public comment by employees includes public speaking legitimate, work related reason for access. engagements, comments on radio and television or in letters to newspapers, and expressing views in books, journals or notices if it is 8 Use of official facilities and equipment expected that the comments will spread to the community at large. Employees are expected to be efficient and economical in their use Employees, as individual members of the community, have the and management of public resources, including their own work right to make public comment and enter into public debate on time. They should be scrupulous in their use of public property and political and social issues. However, there are some circumstances in services. which this is inappropriate. For example, situations when the public Official facilities and equipment should only be used for private comment, although made in a private capacity, may appear to be purposes when official permission has been given. This includes an official comment on behalf of NSW DPI. In such circumstances, limited private use of telephones, facsimiles, email, and the internet, employees should preface their remarks with a comment that they where such use does not disrupt official work. are made in a private or union capacity and do not represent the official view of the department concerned. 9 Secondary employment Employees must follow the procedures detailed in the document NSW DPI staff members must have the approval of the Director- Protocol for Dealing with the Media when making public comment on General before they engage in any form of paid employment outside the work of NSW DPI. their official duties. As a general rule, staff members may disclose official information that Employees must also carefully consider whether the organisation is normally given to members of the public seeking that information, offering them secondary employment may adversely affect the but should only disclose other official information or documents: performance of their public service duties and responsibilities or give • in the course of their duties rise to a conflict of interest. • when proper authority has been given This applies whether they are working full-time, part-time or are only • when required, or authorised, to do so by law temporarily employed. • when called to give evidence in court.

NSW Department of Primary Industries ANNUAL REPORT 2004–05 109 APPENDICES

10. Code of conduct (continued)

10 Political and community participation 12 Research guidelines Employees must make sure that any participation in party political Staff involved in research work must read and comply with the activities does not conflict with their primary duty as a public requirements of the NSW DPI Code of Conduct for Research and employee to serve the government of the day in a politically neutral ensure that their work enhances the good name of their institution manner. and the profession to which they belong.

This is important because of the need to maintain Ministerial and 13 Post separation employment public confidence in the impartiality of the actions taken and advice given by public employees. Employees should not use their position to obtain opportunities for future employment. They should not allow themselves or their work What is considered appropriate in any particular case will depend on to be influenced by plans for, or offers of, employment outside NSW the nature of the issue, the position held by the employee, the extent DPI. If they do, there is a conflict of interest and the integrity of the of the employee’s participation, and their public prominence. employee and their department is at risk. If employees become aware that a potential conflict of interest has Former employees should not use, or take advantage of, confidential arisen or might arise, they should inform their executive director information that may lead to gain or profit obtained in the course of immediately and may have to stop the political activity or withdraw their official duties until it has become publicly available. from the areas of their work where the conflict is occurring. All employees should be careful in their dealings with former NSW Within the context of these requirements, employees are free to DPI staff members and make sure that they do not give them, or participate fully in voluntary community organisations and charities appear to give them, favourable treatment or access to privileged and in professional associations. information. 11 Reporting corrupt conduct, maladministration and waste Employees are urged to report suspected corrupt conduct, as well as maladministration and serious and substantial waste of public resources. The Protected Disclosures Act 1994 provides certain protections against reprisals for employees who voluntarily report such matters (but not vexatious or malicious allegations), either to the principal officer of a public authority, or to one of the three investigative bodies: the Independent Commission Against Corruption, the Auditor-General or the Ombudsman. Disclosures may also be made under the NSW DPI internal reporting procedure. If disclosures are made to an external investigating body, those concerning corrupt conduct should be made to the Independent Commission Against Corruption. Disclosures concerning maladministration should be made to the Ombudsman while disclosures concerning substantial waste of public money should be made to the Auditor-General. The person dealing with the protected disclosure should notify the employee who made the disclosure of the action taken or proposed to be taken in relation to the disclosure and the outcome of such action.

110 NSW Department of Primary Industries ANNUAL REPORT 2004–05 APPENDICES

11. Overseas travel

NAME of POSITION COUNTRY PURPOSE OF VISIT DATE DATE OFFICER VISITED FROM TO S Hetherington Research Horticulturist Italy Attend 10th International Workshop on fire blight and visit infected 2/7/04 12/7/04 orchards in Trevanna S Djordjevic Principal Research Scientist USA Present research data at 15th Congress of the International 9/7/04 18/7/04 Organization for Mycoplasmology P F Arthur Principal Research Scientist Canada, USA Attend Canadian Society of Animal Science Conference and 13/7/04 3/8/04 American Society of Animal Science Conference R W Williams Research Agronomist Canada, USA Attend 39th North American Alfalfa Improvement Conference and 15/7/04 30/7/04 visit research centres in North America A B Smith Biometrician Singapore Present short course on design and analysis of experiments for the 21/7/04 23/7/04 Kemin organisation C Archer Principal, CB Alexander China Represent NSW at the Australia China Forum on Cooperation in 22/7/04 29/7/04 Agricultural College Horticulture and present papers D Hocking Director, Intensive China Represent NSW at Australia China Forum on Cooperation in 22/7/04 29/7/04 Industries Development Horticulture and present papers P L Greenwood Senior Research Scientist USA Attend Triennial Growth Symposium of the American Society of 22/7/04 5/8/04 Animal Science (ASAS) R J Martin Research Leader, Northern Cambodia Attend ACIAR project ASEM/2000/109 progress review and joint 26/7/04 7/8/04 Farming Systems meeting with ACIAR project LWR1/2001/051 D Vere Senior Research Scientist Indonesia Review of ACIAR project ADP/2000/100 Contract farming, 28/7/04 3/8/04 smallholders and rural development R J Farquharson Economist Cambodia Attend ACIAR project ASEM/2000/109 progress review and joint 30/7/04 8/8/04 meeting with ACIR project LWR1/2001/051 E J Cother Principal Research Cambodia, Collaborate on host/pathogen investigations for biological control of 7/8/04 25/8/04 Scientist South Korea rice weeds (Korea). Assess facility and staff for ACIAR rice pathology project (Cambodia) C Wellings Senior Research Scientist UK, Attend 11th International Cereal Rusts and Mildews Conference. 17/8/04 10/9/04 Kazakhstan Establish links with researchers I Rose Research Agronomist China Take part in germplasm collection mission of landraces of faba 21/8/04 5/9/04 beans and field peas S Belfield District Agronomist USA Present scientific paper at International Sunflower Conference. 21/8/04 9/9/04 Undertake study tour of sunflower research and production areas L Serafin District Agronomist USA Present scientific paper at International Sunflower Conference. 21/8/04 9/9/04 Undertake study tour of sunflower research and production areas K Bevington Research Horticulturist USA Undertake assessment of post harvest breakdown problems in 23/8/04 4/9/04 $70m citrus export trade to the USA and evaluate outturn of trial shipments R J Mailer Principal Research Scientist Scotland Attend Euro Fed Lipids Congress to study current research on olive 2/9/04 11/9/04 and canola. Present a paper on Australian olive studies G Beecher Research Agronomist India Present project findings at the ACIAR mid-term project review 4/9/04 13/9/04 of ACIAR project Permanent beds for irrigated rice, wheat and alternatives J Thompson Research Agronomist India Present project findings at the ACIAR mid-term project review 4/9/04 13/9/04 of ACIAR project Permanent beds for irrigated rice, wheat and alternatives D Michalk Principal Research Scientist China Undertake commercial consultancy as a member of the World Bank 4/9/04 4/10/04 & Research Leader, Weeds Supervision Mission J Diplock Principal Manager, China Present paper at China International Fisheries and Aquaria 9/9/04 12/9/04 Marine Recreation Conference S E Parks Research Horticulturist New Zealand Speak at Vegfed Fresh Tomato Sector Annual Conference 10/9/04 13/9/04 S McLeod Research Officer New Zealand Present paper at special symposium in memory of Dr Nigel Barlow 13/9/04 18/9/04 T Glasby Research Scientist Ireland Attend and present paper at 13th International Conference on 15/9/04 30/9/04 Aquatic Invasive Species

NSW Department of Primary Industries ANNUAL REPORT 2004–05 111 APPENDICES

11. Overseas travel (continued)

NAME of POSITION COUNTRY PURPOSE OF VISIT DATE DATE OFFICER VISITED FROM TO J Lacy Technical Specialist, Chile 3rd Consultancy on Ricecheck for the Chilean Rice Industry 26/9/04 4/10/04 Irrigated Farming Systems B Kilgour Senior Livestock New Zealand Participate in workshop to assess temperament and welfare in farm 29/9/04 2/10/04 Research Officer animals, the genetic control of these characteristics and current research discussion G Griffith Principal Research Scientist New Zealand Present report at meeting of Federal Council of the Australian 5/10/04 9/10/04 Agricultural and Resource Economics Society J Mullen Principal Research Scientist, New Zealand Present report at meeting of Federal Council of the Australian 5/10/04 9/10/04 Research Leader, Economics Agricultural and Resource Economics Society Research J Evans Senior Research Scientist Korea, Attend 3rd International Nitrogen Conference and review progress, 9/10/04 27/10/04 China establish objectives and details for new project J Bright District Horticulturist Japan Continue exchange program between Ehime Prefectural Govt and 10/10/04 5/12/04 NSW DPI to identify market opportunities for MSW products C Griffiths District Livestock Officer Tibet (China) Attend first planning meeting for project Increasing milk production 11/10/04 22/10/04 (Dairy) from cattle in Tibet A Kaiser Livestock Research Officer Tibet (China) Attend first planning meeting for project Increasing milk production 11/10/04 22/10/04 from cattle in Tibet J Wilkins Senior Livestock Research Tibet (China) Attend first planning meeting for project Increasing milk production 11/10/04 22/10/04 Officer from cattle in Tibet J Murison Manager, PRIMEX Korea, Japan Participate in trade mission of ACIAR - NSW Agriculture cropping 12/10/04 31/10/04 systems project S Belfield Senior Biometrician Korea, China Present course on biometry to researchers/students from DPRK as a 14/10/04 25/10/04 part of ACIAR - NSW Agriculture cropping systems project R Reinke Research Agronomist China Speak at International Conference on Sustainable Rice Production 14/10/04 19/10/04 A Jessup Senior Research Scientist Mexico, Attend two meetings on the use of Sterile Insect Release Technique 16/10/04 1/11/04 Guatemala for control/eradication of fruit flies P Kirkland Principal Research Scientist USA, Canada Participate in OIE workshop and attend annual conference of the US 18/10/04 18/10/04 Association of Veterinary Laboratory Diagnosticians M Ison Advisory Officer (Education) New Zealand Conduct study tour for Tocal Dairy apprentices and trainees 18/10/04 28/10/04 Z Porter Technical Assistant New Zealand Conduct study tour for Tocal Dairy apprentices and trainees 18/10/04 28/10/04 V Nguyen Research Horticulturist Vietnam, Work with Vietnamese counterpart organisations on the two-year 20/10/04 9/11/04 Japan AusAid project and attend 2004 International Conference on O-Cha (Green Tea) Culture and Science L Cook Veterinarian (Chemical USA Represent States via PISC on Australian Delegation to WHO/FAO 23/10/04 31/10/04 Control) Codex Committee on Residues of Veterinary Drugs in Foods S Goodwin Senior Research Scientist China Discuss potential for scientific and industry collaborations in 30/10/04 14/11/04 biocontrol and safe chemical use in IPM programs in greenhouse vegetable crops B George Technical Specialist, USA Participate in Combined International Energy Agency, the 6/11/04 14/11/04 Private Forestry Extension International Union of Forest Research Organisations and Short Rotation Woody Crops Operations Working Group biennial meeting P Slavich Centre Director - Centre of Vietnam Assess potential to develop a new collaborative soil management 13/11/04 19/11/04 Excellence and irrigation project between Australia and Vietnam R Swinton Resource Management Vietnam Assess potential to develop a new collaborative soil management 13/11/04 19/11/04 and irrigation project between Australia and Vietnam S Hetherington Professional Officer Vietnam Visit all Vietnamese institutes involved in the ACIAR Project 14/11/04 22/11/04 Research Horticulturalist PHT/2002/086 and plan for February 2005 meeting S Newman Research Horticulturist Vietnam Visit all Vietnamese institutes involved in the ACIAR Project 14/11/04 22/11/04 PHT/2002/086 and plan for February 2005 meeting

112 NSW Department of Primary Industries ANNUAL REPORT 2004–05 APPENDICES

11. Overseas travel (continued)

NAME of POSITION COUNTRY PURPOSE OF VISIT DATE DATE OFFICER VISITED FROM TO P Gibbs Principal Fisheries Scientist Philippines Develop management plans for ACIAR Project Sustainable 14/11/04 19/11/04 Management of Fisheries R Sheldrake Deputy Director-General, China Attend joint economic meeting in Guangdong and establish NSW 28/11/04 6/12/04 Agriculture & Fisheries – Guangdong Agriculture sub-committee L Tesoriero Plant Protection Officer China Consult to Technico Pty Ltd and conduct Phytosanitary Audit on 28/11/04 3/12/04 their Potato Technituber production facility D Vere Senior Research Scientist China Conduct impact assessments of two projects, conservation/zone 28/11/04 7/12/04 tillage research for dryland farming and sustainable mechanised dry land grain production C Wang Manager, Primary Industries China Attend meetings and participate in working committees 28/11/04 6/12/04 Export K Schulze District Agronomist Germany Complete half of the requirements for a Masters of Agriculture under 14/1/05 11/6/05 the LEAFSE Scholarship Program H Raman Senior Research Scientist USA Present research papers at 13th Plant and Animal Genome 14/1/05 23/1/05 Conference S Goodwin Senior Research Scientist New Zealand Participate in a Trans-Tasman vegetable industries integrated pest 25/1/05 28/1/05 management strategic planning workshop M Steiner Senior Entomologist New Zealand Participate in a Trans-Tasman vegetable industries integrated pest 25/1/05 28/1/05 management strategic planning workshop S McDougall Technical Specialist New Zealand Participate in a trans-Tasman vegetable industries integrated pest 26/1/05 2/2/05 management strategic planning workshop A Mitchell Professional Officer United Attend International Conference for the Barcoding of Life 3/2/05 11/2/05 Kingdom A Casey Livestock Officer South Africa Improve the viability of Australian sheep producers by increasing the 13/2/05 20/2/05 meat production capability of the Australian merino flock N Elias Research Officer Cambodia Train extension collaborators and prepare for 2005 field research 13/2/05 6/3/05 program R J Martin Research Leader, Cambodia Train extension collaborators and prepare for 2005 field research 13/2/05 6/3/05 Northern FS program F Scott Economist Cambodia Train extension collaborators and prepare for 2005 field research 13/2/05 6/3/05 program R Esdaile Professional Officer Cambodia Provide support to ACIAR Project ASEM/2000/109 in the 13/2/05 13/3/05 development of research program M Hickey District Horticulturist Cambodia Phase 2 contact visit with ACIAR Project PHT/2003/045 14/2/05 20/2/05 S Newman Research Horticulturist Vietnam, Attend ACIAR project planning meetings in both countries 14/2/05 6/3/05 Cambodia S Hetherington Research Horticulturist Vietnam Attend ACAIR project planning meeting and undertake field visits 19/2/05 6/3/05 R J Mailer Principal Research Scientist UK Attend Codex Alimentarius Commission meeting - proposed draft 19/2/05 27/2/05 standards on fats and oils R Van De Ven Senior Biometrician Vietnam Attend an ACIAR project planning meeting to establish experimental 19/2/05 27/2/05 protocols to examine the effects of pre-harvest management and supply chain management on fruit quality G Eggleston Director, Emergencies & Italy Discuss FAO Plant Protection Division - policy aspects of locust 24/2/05 4/3/05 Strategic Response control and FAO Emergency Operations Division - operational aspects of locust control, general agricultural emergencies and FAO tsunami relief efforts J Van Leur Senior Plant Pathologist China Participate in a survey for Faba bean and pea diseases 28/2/05 15/3/05 E Tyne Director, Geological Survey Canada Participate in Commonwealth and State Geoscience delegation to 28/2/05 12/3/05 of NSW the Prospectors and Developers Association of Canada Convention

NSW Department of Primary Industries ANNUAL REPORT 2004–05 113 APPENDICES

11. Overseas travel (continued)

NAME of POSITION COUNTRY PURPOSE OF VISIT DATE DATE OFFICER VISITED FROM TO L Gilligan Manager, Resources & Canada Participate in Commonwealth and State Geoscience delegation to 28/2/05 12/3/05 Land Use Assessment & the Prospectors and Developers Association of Canada Convention Exploration NSW Minerals and Petroleum J Mullen Principal Research Philippines Collaborate on project with SARDI, funded by ACIAR, to conduct an 7/3/05 13/3/05 Scientist economic analysis of the value of seasonal climate forecasting to Philipine and Australian farmers L Evans Advisory Officer Indonesia Assist ACIAR mission to Aceh, Indonesia to plan urgent assistance to 13/3/05 19/3/05 tsunami-affected farmers V Nguyen Research Horticulturist Vietnam Work with Vietnamese counterpart organisations on two-year 20/3/05 10/4/05 AusAid project I Rose Research Agronomist China Take part in a Germplasm collection mission to collect landraces of 26/3/05 19/4/05 faba beans and field peas J Golding Research Horticulturist USA Visit and discuss onion pungency with the leading world onion 1/4/05 8/4/05 expert M Mackay Curator, Australian Winter Uzbekistan, Participate in ACIAR Central Asia and Caucasus project meetings 6/4/05 30/9/05 Cereal Collection Sweden S Goodwin Senior Research Scientist Finland, UK Participate in a meeting of the International Organisation of 8/4/05 22/4/05 Biological Control on Greenhouse IPM M Weckert Research Plant Pathologist New Zealand Complete the bilateral exchange started in February 2004. Funded 17/4/05 24/4/05 by the Royal Society of New Zealand C Hunt Technical Officer Indonesia Conduct a training course in laboratory soil analysis techniques as a 18/4/05 30/4/05 result of the tsunami disaster A Bowman Research Leader Eritrea Undertake dry land farming systems capacity building project in 27/4/05 7/5/05 Eritrea offered by the Australian Government S Balogh Agricultural Protection New Zealand Attend 13th Australasian Vertebrate Pest Control Conference 1/5/05 6/5/05 Officer B Kay Manager, Vertebrate Pests New Zealand Attend 13th Australasian Vertebrate Pest Control Conference 1/5/05 6/5/05 D Gilligan Research Scientist New Zealand Attend Daughterless Carp Reference Group and present at the 13th 1/5/05 7/5/05 Australasian Vertebrate Pest Conference G Saunders Principal Research Scientist New Zealand Attend 13th Australasian Vertebrate Pest Control Conference 1/5/05 7/5/05 J Tracey Research Officer New Zealand Attend 13th Australasian Vertebrate Pest Control Conference 1/5/05 6/5/05 D Luckett Senior Research Scientist Mexico, Chile Present paper at 11th International Lupin Conference 1/5/05 15/5/05 S Newman Research Horticulturist Taiwan Attend project start-up meeting for ADB project held at the Asian 1/5/05 7/5/05 Vegetable Research and Development Centre A Jessup Senior Research Austria Attend two meetings on area-wide management for control/ 3/5/05 16/5/05 Horticulturist eradication of fruit flies and other insects L Evans Advisory Officer Indonesia Help deliver a soils training course for Indonesian scientists and 7/5/05 20/5/05 extension staff to improve their skills with post tsunami recovery of agriculture I Southwell Principal Research Scientist Malaysia Present paper to 4th Malaysian international Conference on Essential 7/5/05 15/5/05 Oils and Fragrance and Flavour Materials P Slavich Research Leader, Soils, Indonesia Assist with a soil training course for Indonesian scientists, with 8/5/05 22/5/05 Recycling Organics & particular reference to tsunami affected soils Remediation Technologies R Davis Technical Officer USA Participate in a training program for rapid diagnostic techniques 14/5/05 11/6/05 for avian influenza and Newcastle disease and review diagnostic procedures for other animal diseases Y Lele Technical Officer USA Participate in a training program for rapid diagnostic techniques 14/5/05 11/6/05 for avian influenza and Newcastle disease and review diagnostic procedures for other animal diseases

114 NSW Department of Primary Industries ANNUAL REPORT 2004–05 APPENDICES

11. Overseas travel (continued)

NAME of POSITION COUNTRY PURPOSE OF VISIT DATE DATE OFFICER VISITED FROM TO B Auld Principal Research Scientist Japan Investigate invasion patterns of weeds and resistance to invasion in 15/5/05 15/6/05 Japanese ecosystems K Chan Principal Research Scientist China Fulfil contractual arrangement of ACIAR project, Improving the 15/5/05 26/5/05 productivity and sustainability of rainfed farming systems G Li Research Scientist China Fulfil contractual arrangement of ACIAR project, Improving the 15/5/05 26/5/05 productivity and sustainability of rainfed farming systems R Kilgour Senior Livestock Research New Zealand Participate in collaborative research project at the Invermay 15/5/05 7/6/05 Officer Agricultural Centre to measure behavioural individuality in deer and to determine its heritability P S Gillespie Technical Officer Thailand Train staff of Thai Dept of Agriculture in whitefly identification 16/5/05 31/5/05 A Gilmour Principal Research Scientist USA, UK Undertake consultancies for Pioneer at Johnstone, Iowa and 21/5/05 16/6/05 Monsanto, St Louis M Conyers Senior Research Scientist North Korea, Establish potassium pot trials, compare laboratory analyses, collect 22/5/05 29/5/05 China soil samples and examine the progress with mineralisation methods C Griffiths Livestock Officer China-Tibet Assess the on-farm progress of the ACIAR project Increasing milk 5/6/05 19/6/05 production from cattle in Tibet J Wilkins Senior Livestock Research China-Tibet Assess the on-farm progress of the ACIAR project Increasing milk 5/6/05 19/6/05 production from cattle in Tibet J Chin Principal Research Scientist China Present talks on molecular diagnostic technologies and 6/6/05 17/6/05 biotechnology. Establish a program for Sino-Australian collaboration in novel diagnostic technologies I Percival Principal Research Scientist USA Attend International Geological Correlation Program project 503 11/6/05 18/6/05 symposium J Diplock Principal Manager, Norway Present papers at the 4th World Recreational Fishing Conference 12/6/05 16/6/05 Marine Recreation D Reid Senior Biometrician Norway Present papers at the 4th World Recreational Fishing Conference 12/6/05 16/6/05 D Hopkins Senior Research Scientist New Zealand Present paper at 65th New Zealand Society of Animal Production 19/6/05 24/6/05 Conference T Khurshid Research Horticulturist New Zealand Present paper on flower suppression to optimise fruit size for export 19/6/05 25/6/05 market D Michalk Principal Research Scientist Ireland Present paper at International Grassland Congress 20/6/05 9/7/05 C Anderson Professional Officer USA Attend Fusarium 2005 25/6/05 17/7/05 R J Mailer Principal Research Scientist Canada Visit the Canadian food inspection agency to study equipment, staff, 26/6/05 30/6/05 laboratory layout and testing methods C Wellings Principal Research Scientist Kazakhstan Implement cooperative research with the Cimmyt program 28/6/05 6/8/05 (Kazakhstan) and participate in the Kazakh-Siberia Spring Wheat Improvement Network meeting

NSW Department of Primary Industries ANNUAL REPORT 2004–05 115 APPENDICES

12. Legislation and legal change

Acts administered by NSW DPI and the NSW Minister for • Softwood Forestry Agreement Act 1968, No. 20 Primary Industries: • Softwood Forestry Agreement Ratification Act 1980, No. 90 • Agricultural and Veterinary Chemicals (New South Wales) Act • Softwood Forestry (Further Agreement) Act 1973, No. 7 1994, No. 53 • States and Northern Territory Grants (Rural Adjustment) Agreement • Agricultural Industry Services Act 1998, No. 45 Ratification Act 1985, No. 113 • Agricultural Livestock (Disease Control Funding) Act 1998, No. 139 • States and Northern Territory Grants (Rural Adjustment) Agreement • Agricultural Scientific Collections Trust Act 1983, No. 148 Ratification Act 1989, No. 168 • Agricultural Tenancies Act 1990, No. 64 • States Grants (Rural Adjustment) Agreement Ratification Act 1977, No. 104 • Animal Research Act 1985, No. 123 • States Grants (Rural Reconstruction) Agreement Ratification Act • Apiaries Act 1985, No. 16 1971, No. 37 • Banana Industry Act 1987, No. 66 • Stock (Artificial Breeding) Act 1985, No. 196 • Biological Control Act 1985, No. 199 • Stock (Chemical Residues) Act 1975, No. 26 • C.B. Alexander Foundation Incorporation Act 1969, No. 61 • Stock Diseases Act 1923, No. 34 • Dairy Adjustment Programme Agreement Ratification Act • Stock Foods Act 1940, No. 19 1975, No. 31 • Stock Medicines Act 1989, No. 182 • Dairy Adjustment Programme Agreement Ratification Act 1977, No. 98 • Swine Compensation Act 1928, No. 36 • Dairy Industry Act 2000, No. 54 • Sydney Market Authority (Dissolution) Act 1997, No. 62 • Dried Fruits (Repeal) Act 1997, No. 124 • Timber Marketing Act 1997, No. 72 • Exhibited Animals Protection Act 1986, No. 123 • Veterinary Surgeons Act 2003, No. 87 • Exotic Diseases of Animals Act 1991, No. 73 • Veterinary Surgeons Act 1986, No. 55 • Farm Debt Mediation Act 1994, No. 91 • Wine Grapes Marketing Board (Reconstitution) Act 2003, No. 100 • Farm Produce Act 1983, No. 30 Joint administration with the Minister for Mineral Resources: • Farrer Memorial Research Scholarship Fund Act 1930, No. 38 The Minister for Mineral Resources has joint administration of the • Fertilisers Act 1985, No. 5 following acts with the NSW Minister for Primary Industries: • Fish Marketing Act 1994, No. 37 • Coal Acquisition Act 1981, No. 109 • Fisheries Act 1935, No. 58 • Coal Mine Health and Safety Act 2002, No. 129 • Fisheries Management Act 1994, No. 38 • Coal Mines Regulation Act 1982, No. 67 • Food Act 2003, No. 43 • Coal Ownership (Restitution) Act 1990, No. 19 • Forestry Act 1916, No. 55 • Mine Subsidence Compensation Act 1961, No. 22 • Game and Feral Animal Control Act 2002, No. 64 • Mines Inspection Act 1901, No. 75 • Gene Technology (GM Crop Moratorium) Act 2003, No. 12 • Mining Act 1992, No. 29 (except section 293, Attorney General) • Gene Technology (New South Wales) Act 2003, No. 11 • Occupational Health and Safety Act 2000, No. 40, so far as it • Grain Marketing Act 1991, No. 15 relates to mines within the meaning of the Mines Inspection Act • Marginal Dairy Farms Reconstruction Scheme Agreement 1901 and the Coal Mines Regulation Act 1982 (remainder, Minister Ratification Act 1971, No. 72 for Commerce) • Marine Parks Act 1997, No. 64 (jointly with the Minister for the • Offshore Minerals Act 1999, No. 42 Environment) • Petroleum (Onshore) Act 1991, No. 84 • Marketing of Primary Products Act 1983, No. 176 • Petroleum (Submerged Lands) Act 1982, No. 23 • Meat Industry Act 1978, No. 54 • Uranium Mining and Nuclear Facilities (Prohibitions) Act 1986, • Non-Indigenous Animals Act 1987, No. 166 No. 194 • Noxious Weeds Act 1993, No. 11 New and amended legislation • Plant Diseases Act 1924, No. 38 • Poultry Meat Industry Act 1986, No. 101 The following Bills were passed by the NSW Parliament in 2004-05: • Prevention of Cruelty to Animals Act 1979, No. 200 • Coal Acquisition Amendment (Fair Compensation) Bill 2005 • Rural Adjustment Scheme Agreement Act 1993, No. 107 • Forestry (Darling Mills State Forest Revocation) Bill 2004 • Rural Assistance Act 1989, No. 97 • Gene Technology (GM Crop Moratorium) Amendment Bill 2004 • Rural Lands Protection Act 1998, No. 143 • Game and Feral Animal Control Amendment Bill 2005 • Seeds Act 1982, No. 14 • Mine Health and Safety Bill 2004 – certain provisions of this • Snowy Mountains Cloud Seeding Trial Act 2004, No. 19 amend the Mining Act 1992

116 NSW Department of Primary Industries ANNUAL REPORT 2004–05 APPENDICES

12. Legislation and legal change (continued)

• Mining Amendment (Miscellaneous Provisions) Bill 2004 Staged repeal program • Noxious Weeds Amendment Bill 2005 The Department prepared a number of draft regulations and • Petroleum (Submerged Lands) Amendment (Permits and regulatory impact statements for public consultation in relation to Leases) Bill 2005 the following regulations which were due for staged repeal on • Poultry Meat Industry Amendment (Prevention of National 1 September 2005: Competition Policy Penalties) Bill 2005 • The Agricultural Industry Services (Polls and Elections) • Prevention of Cruelty to Animals Amendment Bill 2004 Regulation 2000 • Stock Medicines Amendment Bill 2004. • Animal Research Regulation 2005 The following regulations were made by the Governor in 2004-05: • Apiaries Regulation 2005 • Agricultural Industry Services (Interstate Arrangements) • Exhibited Animals Protection Regulation 2005 Regulation 2004 • Stock (Chemical Residues) Regulation 2005 • Agricultural Industry Services (Interstate Arrangements) • Stock Foods Regulation 2005 Amendment (Murray Valley Wine Grape Industry • Stock Medicines Regulation 2005 Development) Regulation 2004 • Timber Marketing Regulation 2005. • Agricultural Industry Services (Polls and Elections) Regulation 2005 Statute law revision amendments • Exotic Diseases of Animals Amendment (Delegation) There were statute law revision amendments to the: Regulation 2005 • Agricultural Livestock (Disease Control Funding) Act 1998 • Fisheries Management (General) Amendment (Manning River Prawn Nets) Regulation 2004 • Animal Research Act 1985 • Fisheries Management (General) Amendment (Recreational • Apiaries Act 1985 Fishing Fee) Regulation 2004 • Coal Industry Act 2001 • Fisheries Management Legislation Amendment (Miscellaneous) • Exhibited Animals Protection Act 1986 Regulation 2004 • Exotic Diseases of Animals Act 1991 • Fisheries Management (General) Amendment (Advisory Bodies) • Farrer Memorial Research Scholarship Fund Act 1930 Regulation 2004 • Fertilisers Act 1985 • Fisheries Management (General) Amendment (Management • Fisheries Management Act 1994 Advisory Committee Membership) Regulation 2004 • Mining Act 1992 • Fisheries Management (General) Amendment (Section 220ZB Exemption) Regulation 2004 • Mine Subsidence Compensation Act 1961 • Fisheries Management (General) Amendment (Jervis Bay Purse • Noxious Weeds Regulation 2003 Seine Net Permit Fee) Regulation 2005 • Petroleum (Onshore) Act 1991 • Fisheries Management (General) Amendment (Miscellaneous) • Plant Diseases Act 1924 Regulation 2005 • Rural Lands Protection Act 1998 • Fisheries Management (General) Amendment (Clarence River) • Stock (Chemical Residues) Act 1975 Regulation 2005 • Stock Diseases Act 1923 • Fisheries Management (General) Amendment (Fish Receivers) • Subordinate Legislation Act 1989 Regulation 2005 • Swine Compensation Act 1928 • Fisheries Management (General) Amendment (Appeals) • Timber Marketing Act 1977 Regulation 2005 • Fisheries Management Amendment Regulation 2005 Regulations made under the subordinate legislation • Forestry Amendment (Fees) Regulation 2004 program • Game and Feral Animal Control Regulation 2004 • Fisheries Management (General) Amendment (Recreational • Mine Subsidence Compensation Amendment (Contributions) Fishing Fee) Regulation 2004 Regulation 2005 • Mine Subsidence Compensation Regulation 2002 • Mining Amendment Regulation 2005 • Stock Diseases (General) Regulation 2004. • Rural Lands Protection (General) Amendment (Rates) Regulation 2005 • Stock (Chemical Residues) Amendment Regulation 2005 • Stock Diseases (General) Regulation 2004

NSW Department of Primary Industries ANNUAL REPORT 2004–05 117 APPENDICES

13. Significant judicial decisions affecting NSW DPI or users of NSW DPI services

During the year there were two significant judicial decisions that may 7 March 2005 imposing a fine of $200 000. Issues addressed in the impact on our clients. IRC’s decision (further to its consideration of the provision in the In Australian Wool Innovation v Newkirk ats PETAB, Australian Wool Gretley matter) included the effect of section 50 of the Occupational Innovation failed in its claim for orders and damages against PETA Health and Safety Act 1983 (now replaced by section 26 of the under the Trade Practice Act 1974 resulting from the call by PETA for Occupational Health and Safety Act 2000) in deeming a corporation’s boycotts against the wool industry until it ceased sheep mulesing managers to be liable. The IRC found charges under section 15 (by and live sheep export for meat. virtue of section 50) against the mine manager proven, though it opted to dismiss those charges. In Australian Pork Ltd v Director of Animal & Plant Quarantine, Australian Pork Limited challenged an Australian Quarantine and The further case of Morrison v Coal Operations Australia Limited Inspection Service (AQIS) order that allowed the import of foreign pig arose from the 6 July 1998 death of a miner at Wallarah Colliery. On meat in certain restricted circumstances. The AQIS order was based 27 April 2005, the Full Bench of the IRC (granting the Departmental on an industry risk assessment process that the court held to be prosecutor’s appeal) convicted the defendant of offences under section 15 of the Occupational Health and Safety Act 1983 and ‘fundamentally flawed and could in no way be supported by science’. imposed a fine of $200 000. Of the numerous prosecutions or other litigated matters in 2004-05 In its 18 November 2004 decision in NSW Fisheries v Payanouvong, under legislation administered by the Department, several cases the Supreme Court (Master Harrison) upheld the scope of resulted in judicial decisions of particular significance as follows. It fisheries officers’ powers under the Fisheries Management Act should be noted that, at the close of 2004-05, the three decisions of 1994. The case involved a prosecution under section 247(1) of the the Industrial Relations Commission (IRC) mentioned below each Fisheries Management Act 1994 for obstructing a fisheries officer, remained the subject of pending further proceedings in the Court of in circumstances where, contrary to the officer’s direction, the Appeal, in which the respective convicted parties were seeking the defendant emptied a bucket of fish into Botany Bay. On appeal by setting aside of their convictions by the IRC. the Department against Sutherland Local Court’s dismissal of the Prosecutions arising from the deaths on 14 November 1996 of four case, the Supreme Court rejected the Local Court’s decision that miners in an underground water inrush at Gretley Colliery resulted in fisheries officers’ powers under section 250 to inspect containers fines of record levels under NSW workplace safety legislation. Those (such as buckets) for fish do not apply in public places. The Supreme proceedings (McMartin v Newcastle Wallsend Coal Company Pty Court held that the reference in section 250 to such powers being Limited & Others) related to offences under the Occupational Health exercisable on entry to ‘premises’ covers public as well as private and Safety Act 1983, the prosecutor being a WorkCover officer. The places (the Act defines ‘premises’ as including ‘any… place, whether IRC gave judgment on 9 August 2004 convicting two corporations built on or not’). and three individuals and a subsequent judgment on 11 March 2005 Amongst the numerous prosecutions under the Fisheries imposing fines. Management Act 1994 during 2004-05, most of which resulted in In those judgments, Newcastle Wallsend Coal Company Pty Limited fines, one case resulted in the offender being sentenced to a term of and Oakbridge Pty Limited were convicted of offences under imprisonment. That case was Barrell v Hockey, where the offender, sections 15 and 16 of the Act and were fined a total of $1.46 million. who was caught at Pambula in possession of 1976 shucked abalone, Mr R Porteous, Mr J Romke and Mr M Robinson were similarly was sentenced on 16 May 2005 to three months’ gaol by Wollongong convicted of offences under sections 15 and 16, on the basis of Local Court for offences under section 16(1) (possession of prohibited their status as persons concerned in the management of those size fish) and section 18(2) (possession of fish above legal bag limit). corporations and accordingly their deemed liability under section 50 of the Act, and were fined $42 000, $30 000 and $30 000 respectively. Of the various mine safety prosecutions progressed by the Department in 2004-05, two resulted in the highest ever penalty levels in such prosecutions by the Department (or the former Department of Mineral Resources). One of those matters involved proceedings arising from the death of a miner following an underground roof collapse at Awaba Colliery on 17 July 1998. In those proceedings (Morrison v Powercoal Pty Limited & Another), the IRC gave judgment on 18 November 2004 convicting the defendant corporation of offences under section 15 of the Occupational Health and Safety Act 1983 and further judgment on

118 NSW Department of Primary Industries ANNUAL REPORT 2004–05 APPENDICES

14. Waste reduction, recycling and energy management

The NSW Government’s Waste Reduction and Purchasing Policy aims Improvements in waste reduction have been achieved by the use to reduce waste production by all government agencies. NSW DPI of recycled products and the recycling of waste products. NSW DPI is committed to the program and recycles goods to minimise the purchases recycled paper products and toner cartridges for general impact on the environment. use. Recycling programs for paper, packaging and toner cartridges and for building and vegetation waste are in place at all major sites.

Government Energy Management Policy CO Emissions Units Energy Use 2 (tonnes) Electricity gigajoules (GJ) 74,908 19,895 Green electricity gigajoules (GJ) 3,364 0 Gas LPG gigajoules (GJ) 3,376 153 Gas natural gigajoules (GJ) 18,773 965 Heating oil gigajoules (GJ) 196 14 Motor vehicles (petrol) kilolitres (kL) 1,785 4,029 Motor vehicles (diesel) kilolitres (kL) 626 1,685 Motor vehicles (LPG) kilolitres (kL) 33 50 Other vehicles (petrol) kilolitres (kL) 102 230 Other vehicles (diesel) kilolitres (kL) 258 695

Total building energy 100,618 GJ Total building CO2 21,027 tonnes Total motor vehicles fuel 2,804 kL Total motor vehicles CO2 6,689 tonnes

Total CO2 27,716 tonnes

15. Consultants

Consultancies equal to or more than $30 000 Consultant Actual $ cost Title/Nature Mercer Human Resources 183 922 Job evaluation PricewaterhouseCoopers 149 890 Assessment of NSW DPI’s commercial opportunities Root Learning Inc (USA) 92 541 Change Management Communication Project Aerosafe Risk Management 45 617 Review of OHS risks in use of aircraft in the plague locust campaign Galvin & Associates 39 250 Risk assessment – Metropolitan Colliery Total $511 222

Consultancies less than $30 000 During the year there were 33 consultancies of less than $30 000 each in the following areas. Area Actual $ cost of all consultancies in area Environmental 297 991 Management 43 152 Engineering 20 000 Total 361 143 Total consultancy costs: $872 366

NSW Department of Primary Industries ANNUAL REPORT 2004–05 119 APPENDICES

16. Payment of accounts

Time for payment of accounts Aged analysis at the end of each quarter Payments were predominately made on an accrual accounting basis Below is a schedule of the dollar amount of payments made during 2004-05, with creditor payments mainly being made in line during 2004-05 by the Department. Also included is the time these with each creditor’s payment terms. Payment terms are entered into documents were paid, compared to the due date. the financial management information system for each creditor. Three financial management information systems were used during As invoices are received they are entered into the system, which the year as the Department underwent a process of integration. automatically calculates when the invoice is due for payment and The financial management information systems being used by produces a cheque or electronic funds transfer (EFT) payment in time the former Department of Mineral Resources and the former NSW to reach the creditor by the due date. These terms can be overridden Fisheries cannot retrospectively retrieve this statistical information. in urgent or special circumstances. This system allows maximum Therefore, the figures presented here represent only those processed benefits to be gained from the State’s cash management processes by the SAP Financial Management Information System resident at the and also payment of creditors as required. Department’s head office. During the 2004-05 financial year, the Department processed in Due to the way in which the financial management system reports excess of 80 000 accounts payable documents. The Department payments, it is considered that payments in the ‘less than 30 days actively seeks creditor bank details to enable as many payments as overdue’ category are paid on time. possible to be made by EFT. This expedites payment to the creditor and reduces the work involved in reconciling the Department’s bank The payments that appear to be overdue are inflated due to the accounts. invoice date on all invoices being used as the base date. In some instances, for example, natural disaster payments, other organisations EFT remittance advices can be automatically faxed or emailed to each initially receive invoices, which they then process and forward to creditor. This reduces the number of remittance advices requiring the Department for payment. The invoice date may be months prior printing, enveloping, and posting. Further savings are being achieved to our receipt of that invoice. Therefore, the invoice will fall into the through this process, with an estimated average cost of seven cents category of being paid outside the creditor’s terms. per email. In excess of 90 per cent of all remittance advices are either faxed or emailed to creditors.

Current (i.e. within Less than 30 days Between 30 and Between 60 and More than 90 days Quarter due date) overdue 60 days overdue 90 days overdue overdue $ $ $ $ $ September 23 615 474 21 622 842 1 774 849 541 799 1 656 836 December 43 222 955 13 575 949 2 093 615 158 774 91 244 March 23 587 430 26 321 025 4 926 009 2 239 377 2 247 793 June 27 666 789 27 918 005 4 237 828 4 816 707 1 757 096

Accounts paid on time within each quarter Below is a schedule indicating the percentage of payments paid on processed in Orange. As a result, a noticeable improvement in time as compared to the Department’s target. payment performance has occurred. In addition to the statistics reported below: The decline in the percentage of accounts paid on time coincides with the move of the main former Department of Mineral Resources • there were no instances of penalty interest being paid or office from St Leonards to Maitland and the simultaneous move of incurred during 2004-05 the Mineral Resources Corporate Services function to Orange. This • there were few supplier enquiries regarding late payments caused the incorrect addressing of many invoices and subsequent • the accounts payable section generally entered invoices into the delays in redirecting these documents for approval and processing. accounting system within one week of receipt of the invoice. These were the main contributing factors to the decline in payment performance. The Department will continue to monitor these indicators in future years to ensure our payment performance improves. The Department is now using one financial management information system, with all accounts for payment being directed to and

120 NSW Department of Primary Industries ANNUAL REPORT 2004–05 APPENDICES

16. Payment of accounts (continued)

Total accounts paid on time Total amount paid Quarter Target % Actual % Actual $ $ September 95.00 91.93 45 238 316 49 211 800 December 95.00 96.04 56 798 904 59 142 537 March 95.00 84.13 49 908 455 59 321 634 June 95.00 83.72 55 584 794 66 396 425

17. Major assets and capital works

The major physical assets of the Department consist of 24 research The Department continued work to improve occupational health stations and fisheries facilities, including 11 centres of excellence in and safety systems, upgrade the information and communications research across NSW, the Mine Safety Technology Centre at Thornton technology infrastructure, replace marine craft and construct a site in the Hunter Valley and the Drill Core Library at Londonderry in office for the Manning Shelf Bioregion Marine Park at Port Stephens. western Sydney. CAPITAL WORKS The Department has a number of departmental residences, 2 fisheries hatcheries and 94 offices. The Department also owns Following is a list of major capital works undertaken in 2004-05 in 2 ocean-going patrol vessels. descending order of value: With the increasing reliance on efficient and speedy data and Relocation of Mineral Resources to Maitland $10 600 000 communications exchange, the Department has a large number of Plant pathology and entomology laboratory – Wagga $1 450 000 data servers and an extensive TCP/IP network. Upgrade fire safety – Cronulla $700 000 During the year, the Department completed the relocation of the Occupational health and safety and environmental Mineral Resources Division from St Leonards and Lidcombe in Sydney works – statewide $650 000 to new premises at Maitland and Thornton in the Hunter Valley. Office refurbishment at University of Western It also completed the Plant Pathology Laboratory at Wagga Wagga Sydney - Richmond $540 000 Agricultural Institute and a major enhancement to the fire safety Laboratory refurbishment – Wollongbar $410 000 systems at the Cronulla Fisheries Centre. PC2 glasshouse – Wagga $340 000 We acquired major equipment to support the multi-million dollar Dairy feed pad – Menangle $200 000 Exploration NSW project, which will enhance the State’s framework Upgrade of security – Elizabeth Macarthur Agricultural of geological, geophysical and mineral resources mapping and Institute $120 000 information.

18. Land disposal

NSW DPI sold three properties for a total of $2 483 640. A former dip There was no family or business association between any of the site at Mt Lindesay was sold for $3 640, Shannon Vale Field Station buyers and the person responsible for approving disposal. was sold for $950 000 and the Fisheries office at The Entrance was All documents relating to property disposal are available for access sold by tender for $1 890 000. under the Freedom of Information Act 1989. The properties were sold because they were surplus to NSW DPI requirements. The sale proceeds are being used for re-investment in new buildings and infrastructure.

NSW Department of Primary Industries ANNUAL REPORT 2004–05 121 APPENDICES

19. Risk management and insurance

General Motor vehicles NSW DPI is currently using the risk systems of the four former primary Number of claims 133 industries agencies as a basis for developing an integrated and Number of claims per vehicle 0.07 comprehensive risk management strategy. The Risk Management Average cost per claim $3839 Committee is overseeing the development of the strategy that will Average cost per vehicle $167 be based on the Australian standard, taking account of the Audit Office report on managing risk in the public sector. Property The committee’s objectives are to: Number of claims 35 Number of claims per employee 0.01 • promote a culture of risk management in NSW DPI Average cost per claim $9017 • lead, monitor and review the risk program Average cost per employee $103

• raise awareness and motivate staff to take ownership of risks, Liability and undertake responsibilities that relate to risk management. Number of claims 3 A high-level risk review was completed during the year. Work Cost of claims $4748 has now commenced on identifying risks at divisional level and developing objectives and targets to control risks and improve Occupational health and safety inspections, audits and performance. The Risk Management Committee will coordinate investigations the implementation of the risk management strategy and report Twenty-five major sites across the organisation were audited to regularly to the Director-General and the Board of Management. assess compliance with the OHS safety management system. Insurance premiums The Occupational Health and Safety Unit also conducted safety inspections at 30 district offices and small sites. NSW DPI’s insurance cover is under the Treasury Managed Fund. Risk exposures under the following categories are covered: The audited sites performed very well. Against the 58 audit points, 50 per cent were fully compliant and 25 per cent had only one area • workers’ compensation of non-compliance. Weaknesses were mostly with record keeping, • motor vehicles chemical management, housekeeping and Safe Work Method • property Statements. • public liability • miscellaneous. In the event of an occupational safety incident within NSW DPI, the Occupational Health and Safety Unit conducts an investigation to Statistics regarding risk coverage for the period 1 July 2004 to 30 June determine the causes and issues instructions to minimise the risk of 2005 are shown in the tables below: further occurrences. Where necessary the unit liaises with WorkCover Workers’ compensation NSW regarding ‘notifiable accidents’. None occurred during the year. Nor were there any prosecutions under the Occupational Health and Number of injuries reported 286 Safety Act 2000. Number of claims 150 Number of claims per employee 0.05 Average claim cost $5831 Average cost per employee $286

122 NSW Department of Primary Industries ANNUAL REPORT 2004–05 APPENDICES

20. Fisheries trust funds report

Fish Conservation Trust Fund Total Actual Carry Project available expenses forward 2004-05 2004-05 $’000 $’000 $’000

Threatened species sighting sheet project 20 10 10 Ocean Watch Program 25 25 ... Development of monitoring designs for marine protected areas using Cabbage Tree Bay Aquatic Reserve as a pilot 32 12 20 Total 77 47 30

Commercial Fishing Trust Fund In 2004-05 the Commercial Fishing Trust Fund contributed $4.2 million to the Department’s commercial fishery related NSW DPI provides a range of monitoring, scientific, compliance and programs. administrative services to the commercial fishing industry. Of the eight commercial fisheries only two, abalone and rock lobster, Aquaculture Trust Fund are subject to full cost recovery of attributable costs, although there NSW DPI provides a range of monitoring, scientific, compliance and is still some degree of government contribution. In both these cases, administrative services to the aquaculture industry. budgets are negotiated in detail with the relevant management The aquaculture industry is not subject to full cost recovery and advisory committees. charges are not project specific. For the remaining fisheries, charges are levied for services such as Expenditure by the Department on activities relating to aquaculture licence administration and management, but are not project specific. are funded from consolidated revenue with a contribution from the Expenditure by the Department on activities relating to commercial Aquaculture Trust Fund. fishing are funded from consolidated revenue with a contribution The Advisory Council on Aquaculture was consulted over the draft from the Commercial Fishing Trust Fund. budget for aquaculture. The Advisory Council on Commercial Fishing was consulted over the In 2004-05 the Aquaculture Trust Fund contributed $648 000 towards draft budget for commercial fishing. the Department’s aquaculture management activities.

Charter Fishing Trust Fund Total Actual Carry Project available expenses forward 2004-05 2004-05 $’000 $’000 $’000 Charter fishing consultation 34 23 11 Charter fishing monitoring program 105 35 70 Charter fishing management contribution 30 30 … Total 169 88 81

NSW Department of Primary Industries ANNUAL REPORT 2004–05 123 APPENDICES

20. Fisheries trust funds report (continued)

Recreational Fishing (Saltwater) Trust Fund expenditure

Project Total available Actual expenses Carry forward 2004-05* 2004-05 $’000 $’000 $’000 ACoRF meeting expenses 17 17 0 Artificial reef management 169 126 43 Communications management 143 143 0 Dusky flathead research 65 18 46 Expenditure Committee meeting expenses 30 37 -7 Fish aggregation devices (FADs) 128 130 -3 Fishcare Volunteer Program 607 536 71 Fisheries officers (coastal officers) 1 053 1 053 0 Fisheries officers (mobile squad) 355 317 38 Gamefish Tagging Program 183 177 6 Life history of black bream, luderick & age validation research 321 202 119 Marine recreational management 75 75 0 Marine recreational research 93 93 0 Maximising survival of line-caught fish research 238 143 96 Pilot Habitat Restoration Program (Clarence) 64 59 6 Recreational Fishing Fisheries Management Strategy 300 300 0 Recreational harvest of baitfish in NSW research 134 63 71 Recreational fishing havens survey - Lake Macquarie, Tuross Lake 71 71 0 Recreational fishing havens process 506 179 326 Small grants 99 39 60 Tournament monitoring (coastal) 150 148 2 Trust Executive Officer & Reminder Notice Program 280 284 -4 Subtotal 5 081 4 210 870 Direct payments: Angel rings (ANSA) 39 39 0 Capacity development for recreational committee representatives 14 14 0 Economic survey of recreational fishing in 2 coastal towns 22 22 0 Impact of restocked mulloway fingerlings 40 40 0 Loan repayment – recreational fishing havens 2 000 2 000 0 Marine Discovery Centre, Bondi Beach 50 40 10 Mulloway tagging in estuaries (identifying mulloway sites) 11 11 0 Recreational fishing havens survey – northern NSW 121 60 60 Research to develop minimum size limits 51 51 0 Striped marlin economic survey 19 19 0 Study of landed fish at gamefishing tournaments 24 18 6 Validating existing fishing survey information 19 0 19 Video sampling of fish in recreational fishing havens 20 20 0 Subtotal 2 430 2 334 95 Total 7 511 6 544 965 * The total available 2004-05 consists of allocations from the trust fund in 2004-05 and amounts carried forward from 2003-04

124 NSW Department of Primary Industries ANNUAL REPORT 2004–05 APPENDICES

20. Fisheries trust funds report (continued)

ACoRF meeting expenses such as mahi-mahi and even tunas and marlin. The FADs have been The Advisory Council on Recreational Fishing (ACoRF) provides installed with the assistance of local recreational fishing clubs and high quality advice to the Minister for Primary Industries on matters provide an alternative to traditional fishing grounds while relieving relating to recreational fishing. The Council plays a key role in fishing pressure on popular surrounding reefs. Fishers have been consultation over changes to recreational fishing and advises on the reporting great catches, especially over the summer months. feasibility and acceptability of management initiatives. The Council Approval is being sought to deploy an additional five FADs. is required to meet at least four times a year and also considers Fishcare Volunteer Program issues out of session. Expenses associated with Council meetings are funded by the Trust. The successful Fishcare Volunteer Program is the flagship education initiative of the Recreational Fishing Trusts. The program started Artificial reef management in 1999 and now involves over 310 coastal volunteers. Fishcare A three-year pilot program has commenced involving the Volunteers are community members involved in face-to-face deployment of artificial reefs in identified barren areas in three education of the recreational fishing community. Volunteers donate recreational fishing havens to enhance fishers’ catch. Once their time and effort promoting awareness and advising fishers about the necessary approvals have been obtained, the reefs will be the rules and values of sustainable recreational fishing. Volunteers constructed using ‘reef balls’ which have been successfully used assist in a range of activities such as fishing workshops, catch surveys around the world to create extensive habitat for marine fish. and community fishing events. As part of the program, the Saltwater Trust has provided funding for three eye-catching mobile education Communications management units which spread the message on responsible fishing at fishing The aim of the communications program is to inform and educate events, community days, schools presentations and fishing clinics. the community about responsible fishing using a wide range of Fisheries officers (coastal) communications tools such as media, publications, the web and events. The program involves the management of the information The Saltwater Trust is funding nine coastal fisheries officers based and advisory telephone and email service, coordinating the content in the Clarence, Hastings, Port Stephens, Hunter, Sydney north and of the website, designing, producing and distributing well over one south, Shoalhaven, Batemans Bay, and far south coast regions. These million booklets, flyers, sticky rulers, and other print materials, and officers work closely with other NSW DPI officers to target high-risk coordinating and supporting over 50 fishing events and field days offenders and known black spots. The increased presence of fisheries across NSW. officers is widely appreciated by fishers, as it is an effective deterrent against illegal activity. The officers are also able to distribute advisory Dusky flathead research material and answer fisher enquiries. The Saltwater Trust is funding research to determine the reproductive Fisheries officers (mobile squad) cycle, size and age at maturity and the timing and location of spawning of dusky flathead in NSW. The research will inform possible The Saltwater Trust is also funding a recreational mobile squad or management options to maintain sustainable harvesting including ‘flying squad’ of three fisheries officers based at Brooklyn. The mobile suitable size limits. squad carries out extensive day and night-time patrols throughout NSW to maximise compliance with fishing rules and to promote Expenditure Committee meeting expenses the Recreational Fishing Fee. Officers are equipped with the latest The Recreational Fishing Saltwater Trust Expenditure Committee technology. provides advice on priorities for expenditure from the Recreational Gamefish Tagging Program Fishing (Saltwater) Trust. There are 13 anglers representing eight regions along the coast and coastal statewide groups with interests The program aims to provide valuable scientific information on the in recreational fishing. The Committee met four times during biology (distribution, movement, growth and exploitation) of billfish, 2004-05 and was also requested to consider issues out of session. tuna, sharks and sportfish. Running since 1973, the tagging program The Saltwater Trust Fund expenses associated with the committee is the largest of its kind in the world and encourages gamefish meetings included sitting fees, travel expenses and accommodation. anglers to participate in fisheries management and research. The program provides the only tag/recapture information on species Fish aggregating devices (FADs) such as black marlin, sailfish, albacore, dolphin fish and sharks. A small Fifteen fish aggregating devices or FADs have so far been successfully plastic tag has recently been introduced for small pelagic fish such as placed in easily accessible coastal waters to attract pelagic fish dolphinfish and kingfish.

NSW Department of Primary Industries ANNUAL REPORT 2004–05 125 APPENDICES

20. Fisheries trust funds report (continued)

Life history and biology of black bream, luderick and age Recreational Fishing Fisheries Management Strategy validation research NSW DPI has prepared and distributed 75 000 discussion papers The Saltwater Trust is funding essential research on the biology and covering issues such as bag and size limits, fishing competitions, life history of blackbream and luderick, two key recreational species. spearfishing and charter boats. This is the biggest-ever recreational Over 3000 samples have been collected, measured and dissected fishing initiative in NSW. Some anglers are already involved in the to determine length at age relationships, growth and reproductive project through the Advisory Council on Recreational Fishing and biology. As part of the study, black bream and luderick have also specially formed management planning committees. Community been tagged in order to study their movement patterns. This study is feedback will inform decisions on immediate and longer-term actions providing essential information on the status and structure of NSW for a sustainable recreational fishery. black bream and luderick populations that will ensure sustainable management of these key recreational species. Recreational harvest of baitfish in NSW research This research program aims to provide reliable estimates of the The age validation research aims to provide an ageing technique quantities of blue mackerel taken by the recreational sector to for key recreational fish species, including sweep, tarwhine, luderick, determine the total impacts of fishing and to make informed sand whiting, bream and dusky flathead. Information on age and decisions about resource sharing amongst stakeholders. growth is essential for stock assessments of fish populations. The study aims to answer questions such as How old is a fish at any given Recreational fishing havens survey – Lake Macquarie and size? and At what age does a fish reach the minimum legal length? Tuross Lake Marine recreational management This project is designed to assess changes in the catch and effort of recreational fishers following the declaration of recreational fishing Funds have been allocated to a range of marine recreational havens in Lake Macquarie and Tuross Lake. The study repeated management activities. Such activities include providing information previous creel surveys in 1999-2000. During the survey, 70 volunteers to angling groups, stocking groups and stakeholders; consulting and and staff collected data on 72 sample days at each estuary during the corresponding with fishing clubs and other key stakeholder groups; 12-month survey period. At Lake Macquarie 4200 shore anglers and responding to angler inquiries; collating community submissions; 10 600 boat-fishers were surveyed at the various boat ramps while at and maintaining a database of over 1000 NSW-based recreational Tuross Lake 4100 boat-based anglers were surveyed. fishing clubs. Recreational fishing havens process Marine recreational research Recreational fishers along the NSW coast are benefiting from the This program covers the employment cost for a technical officer to 30 recreational fishing havens preserved for recreational fishing. coordinate the recreational fishing havens – Lake Macquarie and The commercial fishers who surrendered 251 fishing businesses, Tuross Lake research program, which was recently completed. including 468 fishing boat licences and 1670 net registrations, Maximising the survival of line-caught fish program received fair compensation. Their relocation and retraining costs were Due to the increasing popularity of catch-and-release fishing, the also covered. Trust is funding research using recreational fishing events and Small grants aquarium experiments to estimate and maximise the survival of The Small Grants Program funds the little things that matter. Fishing released line-caught fish. The project aims to test and develop clubs, councils, community groups and individuals have received changes to procedures and/or fishing gears to ensure sustainable grants up to $5000 for programs to improve recreational fishing. recreational fishing practices. The study will identify detrimental Funding proposals are limited to $5000 and should be matched by hooking, handling and release procedures and establish strategies for funds from the applicant or other sources. Programs funded to date enhancing the survival of large numbers of released caught fish. include: Pilot Habitat Restoration Program (Clarence) 20 fish cleaning tables The Pilot Fish Habitat Restoration Program aimed to encourage 3 fish measuring stations community involvement in fish habitat rehabilitation projects within 1 outdoor display centre the Clarence River catchment. The 14 grant projects have generated 1 weir removal a range of projects that have restored natural tidal flows, habitat 3 education pamphlets and fish passage to over 500 hectares of floodplain and estuarine 5 research studies investigating bream, luderick, estuary perch, wetlands and generated almost $500 000 in additional funding. kingfish juvenile fish and gamefish.

126 NSW Department of Primary Industries ANNUAL REPORT 2004–05 APPENDICES

20. Fisheries trust funds report (continued)

Tournament monitoring (coastal) our understanding of the importance of recreational fishing to local Fishers at fishing competitions across NSW are contributing to economies in rural coastal NSW and the link between tourism and improved knowledge of the state of our fisheries. Researchers the recreational fishing industry in a typical coastal town in NSW. are collecting catch and effort data at selected events to monitor Impact of restocked mulloway fingerlings selected fish populations and the quality of recreational fishing locations across coastal NSW. The fisher-generated information Ongoing research is exploring the impact of stocking a highly prized assists fisheries managers to evaluate the success of strategies in sportfish, the mulloway. Since 2003 NSW DPI, in collaboration with place for recreational fishing. Competitors are asked to complete a the University of NSW, has stocked 140 000 mulloway fingerlings fishing report form on which they record number of fish captures, in Botany Bay and Smith’s Lake. Researchers have investigated the fish measurements and the time spent fishing. This information is growth and survival of the stocked fish and have examined the gut used to determine an angling catch rate (i.e. the number of fish contents of recaptured stocked mulloway to determine what they caught for every hour spent fishing in the particular area) and the fish eat. This information will be used to assess the impact of stocked fish population structure in each fishery. on wild stock food sources such as other fish and prawns.

Trust Fund Executive Officer and Reminder Notice Program Loan repayment – recreational fishing havens The Trust is funding an Executive Officer to oversee and provide The recreational fishing havens established in 2002 were funded better service delivery to the Saltwater Expenditure Committee and through a $20 million loan from the NSW Treasury. The Treasury loan to the Advisory Council on Recreational Fishing to ensure transparent repayments schedule requires that repayments of $2 million be paid reporting, communicate the work of the Committee to fishing clubs in each financial year. Payments of $1 million were made on and the broader community, and provide a conduit for recreational 31 December 2004 and 30 June 2005. fisher views into the Committee. The Executive Officer also oversees Marine Discovery Centre, Bondi Beach the implementation and delivery of trust-funded programs and Funds from the Recreational Fishing Trust have been allocated to the monitors and reports on trust fund budgets and program progress. enhancement of the Bondi Marine Discovery Centre, Bondi Beach for The Executive Officer coordinates the Reminder Notice Program, the education of Sydney school children on sustainable recreational which incorporates advisory material to increase awareness of fishing. The Centre is a non-profit organisation that offers marine and recreational fishing management, including details of where funds coastal education excursion programs to schools and communities from the fishing fees go. in the Sydney region. Located within the Bondi Pavilion, there is an Direct payments interactive aquarium, museum and educational arcade.

Angel rings Mulloway tagging in estuaries (identifying mulloway sites) Funds are assisting the Australian National Sportfishing Association The University of NSW is using ultrasonic tags to track mulloway, (NSW) to install angel rings or life buoys at popular rockfishing spots. thereby collecting data on daily and seasonal movements. Mulloway Since inception of the program, over 65 assemblies have been have been caught in Botany Bay and tags surgically injected into installed and at least 20 lives have been saved. Contributing funds the abdomen of the fish. The fish can then be tracked with a radio from the Recreational Fishing Fee will allow further installations. transmitter on a daily basis. The tracking information will provide estimates of the home range and preferred habitat of mulloway and Capacity development for recreational committee also assist in determining the appropriate densities for any future representatives stocking in NSW estuaries. The Trust has funded a program to improve the skills of Recreational Recreational fishing havens survey – northern NSW Fishing Committee members. The Saltwater Trust is funding a study to determine the effectiveness Economic survey of recreational fishing in two coastal of recreational fishing havens in improving recreational angling in towns northern NSW. Southern Cross University is undertaking sampling in The report released in August 2005 and funded by the Saltwater Trust three havens, the Tweed River, Richmond River and Camden Haven has shown that the recreational fishing sector is worth more than River. These river systems are different sizes, provide various habitat $20 million each to Port Macquarie and Narooma/Bermagui every types and are not completely closed to commercial fishing. Data year. The study examined the daily spending and fishing habits of will be collected on species composition, abundance and the size anglers, the number of fishing days each year for both locals and structure of key recreational fish species within and adjacent to the visitors, and fishing-related expenditure. The study has increased havens. Surveys will also be used to gauge angler attitudes regarding

NSW Department of Primary Industries ANNUAL REPORT 2004–05 127 APPENDICES

20. Fisheries trust funds report (continued)

the implementation and benefits of the havens. attend the tournaments to collect valuable biological data on otherwise difficult to access species so that the life cycles of gamefish Research to develop minimum size limits and sharks can be studied. The Saltwater Trust is funding research to develop a framework based on biological, social and economic information so that appropriate Validating existing fishing survey information minimum legal lengths can be determined for species. Species to be The Saltwater Trust is funding a study to reconcile all current studied include snapper, silver trevally, rubberlip morwong, yellowtail information on recreational fishing activity, catch and expenditure kingfish, mulloway, sweep, pearl perch and various reef associated in NSW, including the NSW component of the National Recreational wrasses and leatherjackets. and Indigenous Fishing Survey. The study will identify areas where potential discrepancies may occur and propose further investigations Striped marlin economic survey in order to clarify the validity of using the surveys for management The Saltwater Trust funded an economic survey of the striped decisions. marlin fishery. The report released in December 2004 assessed the comparative economic benefits of the use of the striped marlin Video sampling of fish in recreational fishing havens resource by recreational and Commonwealth licensed commercial The Saltwater Trust funded the purchase of video equipment to assist fishers. the Recreational Fishing Havens – Northern NSW Research Program.

Study of landed fish at game fishing tournaments This program involves the organisation, coordination and reporting on biological research and sampling at gamefishing tournaments across NSW. Local and international scientists and NSW DPI staff

Recreational Fishing (Freshwater) Trust Fund expenditure

Project Total Actual Carry available expenses forward 2004-05* 2004-05 $’000 $’000 $’000

Dollar-for-Dollar Native Fish Stocking Program 225 186 39 Eastern Cod Stocking Program 20 13 7 Effectiveness of stocking research 160 107 53 Enhanced fish production for stocking 303 294 9 Expenditure Committee meeting expenses 18 25 -7 Fishcare Volunteer Program 268 194 74 Fisheries officers (inland) 625 528 97 Freshwater recreational management 160 149 12 Fish habitat restoration grants 184 160 25 Impoundments Access Program 23 9 14 Inland advisory trailer 27 27 0 Recreational Fishing Fisheries Management Strategy 122 122 0 Regional fish habitat managers (2) 274 272 2 Small Grants Program 40 23 17 Statewide angler survey 13 13 0 Tournament monitoring research (inland) 150 167 -17 Total 2 612 2 289 325 * The total available 2004-05 consists of allocations from the trust fund in 2004-05 and amounts carried forward from 2003-04

128 NSW Department of Primary Industries ANNUAL REPORT 2004–05 APPENDICES

20. Fisheries trust funds report (continued)

Dollar-for-Dollar Native Fish Stocking Program Fishcare Volunteer Program The Dollar-for-Dollar Native Fish Stocking Program has been a great Under the freshwater component of the Fishcare Volunteer Program, success with many stocking organisations involved. Fishing clubs, the saltwater and freshwater trusts jointly fund a state coordinator’s council and community groups are matched dollar-for-dollar by the position and the freshwater trust funds an education officer’s Freshwater Trust in raising money to buy native fish (Murray cod, position in Bathurst. The state coordinator sets the overall direction, golden perch and Australian bass) from private hatcheries to stock policy and procedures for the program, guides the work of the public waterways. During 2004-05, 534 478 golden perch, 247 766 education officers and coordinate statewide education programs. Murray cod and 100 100 bass were stocked. The education officer is responsible for the training and support of Fishcare Volunteers in inland NSW and also provides support to other Eastern Cod Stocking Program community programs, such as fishing workshops and school visits. This conservation stocking program is part of the Eastern Cod The education officer manages the more than 110 active volunteers Recovery Plan. Funding supports essential research into genetic in the Armidale, Bathurst, Orange, Cowra, Albury, Mudgee, Tamworth factors to ensure effective stocking practices. and Wagga Wagga regions.

Effectiveness of stocking research Fisheries officers (inland) This program provides estimates of mortality and survival rates of Freshwater Trust funds make it possible to have six extra inland stocked fish, the contribution of stockings, and percentage returns fisheries officers out and about on the water. These officers are to the angler. The project utilises several marking techniques on located at Inverell, Bathurst, Wellington, Cooma/Jindabyne, Albury trout and native fish species. Several impoundments and rivers have and Dareton. They work closely with other NSW DPI officers to target been stocked with marked fish including rainbow trout, Murray cod, high-risk offenders and known black spots. The increased presence golden perch and Australian bass. of fisheries officers is widely appreciated by fishers, as it is an effective deterrent against illegal activity. The officers also distribute advisory Enhanced fish production for stocking material and answer fisher enquiries. Freshwater Trust funds are being used to enhance the capacity of government hatcheries at the Narrandera Fisheries Centre, Gaden Freshwater recreational management Trout Hatchery (Jindabyne), Dutton Trout Hatchery (Ebor) and Port Funding is provided to employ an inland recreational fisheries Stephens Fisheries Centre to produce high priority recreational manager based at Tamworth. The manager is chiefly responsible for species including trout, salmon, Australian bass, Murray cod, golden activities associated with the coordination of the community and perch and silver perch. During 2004-05, over seven million fish were government fish stocking programs, the small grants program and released from government hatcheries. This included a record 543 000 the Freshwater Trust Expenditure Committee. The manager plays a Murray cod fingerlings. The program also funds fisheries technician key role in community liaison, correspondence with fishing clubs and positions at Narrandera, Jindabyne and Port Stephens hatcheries. other key stakeholder groups, the advisory signage program and in Operational funds provide support for additional production costs, the updating of freshwater fishing publications. including feeding, stocking costs, overtime and temporary assistance at hatcheries during peak periods. Fish habitat restoration grants The Freshwater Habitat Restoration Program matches funding Expenditure Committee meeting expenses to enhance native fish stocks by restoring and protecting their The Recreational Fishing Freshwater Trust Expenditure Committee environment. Fishing clubs, local councils, landholders and Landcare reviews new funding proposals from the Recreational Fishing groups carried out projects in 2004-05 which have resulted in the Freshwater Trust and the progress of existing programs funded by rehabilitation of more than 80 hectares of floodplain and wetland the Trusts. Members also provide input on expenditure priorities habitat and 30 kilometres of riverbank by removing obstacles to fish from their region or organisation. There are eight positions on the movement and introducing large, woody debris to create habitat for committee: three representatives from east of the dividing range, native fish. three representatives from the highland and western slopes, and two far west representatives. The Freshwater Trust funds meeting Impoundments Access Program expenses including travel to and from meetings, sitting fees, catering The program involved the development of a guidebook to assist and accommodation expenses. and encourage anglers to visit 93 quality fisheries established as a result of stocking recreational fish species. The guidebook provides

NSW Department of Primary Industries ANNUAL REPORT 2004–05 129 APPENDICES

20. Fisheries trust funds report (continued)

information on local facilities, the dimensions of each waterbody, Small grants accommodation, stocking history, other fish present and boating The small grants program is designed to provide seed funding for information. This guide is available at www.dpi.nsw.gov.au community groups and other organisations for projects designed to Inland advisory trailer enhance freshwater recreational fishing opportunities. Funding has been provided for a mobile education unit. The unit will Tournament monitoring research (inland) be similar to the successful coastal education units and will spread Angling catch and effort data is being collected at almost 50 the message of responsible fishing at fishing events, community freshwater tournaments each year. Anglers are issued with a fishing days, schools presentations and fishing clinics. report kit, which enables them to record the length of fish caught and the time spent fishing. This allows for the calculation of a Recreational Fishing Fisheries Management Strategy catch rate (number of fish caught per angling hour or angling trip), This program is outlined on page 126. which can be compared from year to year and between different Regional fish habitat managers waterways. The information collected is assisting fisheries managers to evaluate the success of strategies in place to benefit recreational Two inland conservation managers are responsible for a variety of fishing. activities including weir review, fishway installation, management of the Fish Habitat Restoration Program, management of habitat rehabilitation projects, impact assessment, extension and education, recovery planning for threatened species and coordinating the implementation of the Murray-Darling Basin Native Fish Strategy.

Recreational Fishing (Freshwater and Saltwater) Trust Fund expenditure The following programs are funded on a one-third/two-thirds basis by the respective trust funds. Project Total Actual Carry available expenses forward 2004-05* 2004-05 $’000 $’000 $’000 Fishing guides 140 143 -3 Fishing workshops 88 74 14 Fishing promotion 64 66 -2 Recreational fishing fee administration 808 860 -52 Recreational fishing fee research 80 80 0 Total 1 180 1 223 -43 * The total available 2004-05 consists of allocations from the trust fund in 2004-05 and amounts carried forward from 2003-04

Fishing guides their families and promoting fishing to disabled people and those The fishing licence fee funds production of the saltwater and from other cultures. freshwater recreational fishing guides. Each year the guides are Fishing promotion updated to ensure the most current information is being provided to recreational fishers. Last year 200 000 copies of the saltwater guide The expenditure committee actively supported a wide range of and 100 000 copies of the freshwater guide were distributed free communication initiatives designed to educate the community of charge from fisheries offices, Fishcare Volunteers, at community about the requirement for a NSW recreational fishing licence and events and most fishing tackle shops, caravan parks, local shops, responsible fishing practices. The project involved distribution of service stations and Kmart stores where the fishing fee can be paid. information about the fishing licence, exemptions, the purpose of the licence and sustainable fishing practices. Fishing workshops Recreational fishing fee administration Money from the recreational fishing licence fee funds fishing workshops. NSW DPI participated in over 25 coastal and 12 inland Administration of the NSW Recreational Fishing Fee system ensures workshops, teaching responsible fishing practices to children and the efficient servicing of enquiries from licence sales agents and licensed recreational fishers. The fees cover running costs associated

130 NSW Department of Primary Industries ANNUAL REPORT 2004–05 APPENDICES

20. Fisheries trust funds report (continued) with maintaining the licence sales network, licence printing, postage, recreational fishers is important for the management of recreational financial management and audit requirements, data management fishing and the conservation of fish stocks. The database has been and payment of the five per cent agent commission to standard used for various research projects, including expenditure surveys agents. to show the importance of recreational fishing and the National Recreational and Indigenous Fishing Survey. Recreational fishing fee research NSW DPI maintains a database of the recreational fishers who pay the fishing licence fee. Information on the number and distribution of

21. Marine parks

Expenditure incurred on marine parks during 2004-05 is shown in the following table: (a) General (recurrent expenditure) Budget Actual $ $ Solitary Islands 457 506 468 650 Jervis Bay 116 312 118 265 Cape Byron 467 553 471 649 Manning Bioregion 406 303 399 226 Corporate Projects 119 576 108 927 1 567 250 1 566 717

(b) Buyouts Budget Actual $ $ Cape Byron 0 0 Administration 219 000 110 773 219 000 110 773

NSW Department of Primary Industries ANNUAL REPORT 2004–05 131 APPENDICES

22. Funds granted to non-government community organisations

FISHERIES South Creek Restoration Nidgery Weir Fishway Greening Australia NSW $20 000.00 Nidgery Weir Trust $8 600.00 Indigenous Fishery Grant Riparian fencing Wollongong Aquaculture Aboriginal Corporation $12 500.00 PJ & BJ Conalin - Deniliquin $8 000.00 Cudgel Creek Monitoring Program West Micalo Island Repair Works Murrumbidgee Wetland $10 000.00 Geoff Flett & Maree Kelly $7 924.50 Freshwater Habitat grant program Fish cleaning tables, Gwydir River, Bingara Conservation Volunteers - Ballarat $10 000.00 Bingara Anglers Club Murray $5 000.00 Narrandera Recreational Fishing Club $10 000.00 Saltwater Trust Fund Grant Project Wetland Care Australia - Ballina $10 000.00 Coast Guard Port Kembla $5 000.00 Rehabilitation of Bombala River Australian National Sportfishing Association $4 480.00 Snowy River Landcare $10 000.00 Maloi River Catchment Habitat Rehabilitation Cowans Creek Rehabilitation Project Lithgow-Oberon Landcare $3 850.00 Wetland Care Australia $9 000.00 Fish Tagging within Shoalhaven Catchment East Micalo Aquatic Rehabilitation Southern Bass Fishing Club $2 800.00 Fred & Chris Welsh $9 000.00 Fish cleaning tables, Laurieton Ullagundahi Aquatic Rehabilitation Laurieton United Servicemens Club $1 200.00 Yaegl Local Aboriginal Land Council $9 000.00 Payment for erection of signage Micalo Island Rehabilitation Project Singleton Fly Fishing Club $333.18 Robert Schafer & Allan Byrne $8 641.82

MINERALS Stage 2 contribution to the Collaborative Research Centre AMIRA International $35 000.00

AGRICULTURE

To subsidise costs to affected farmers of transporting stock, To assist in the management of the Prevention of Cruelty fodder, & water to Animals Act 1979 various $21 405 250.00 RSPCA $233 200.00 NSW Animal Welfare League $54 000.00 To assist in the eradication of noxious weeds Cat Protection Society of NSW $15 500.00 various $7 377 000.00 Wildlife Information & Rescue Service $15 500.00 Rural Lands Protection Board IT Strategic Plan Domestic Animal Birth $3 000.00 State Council Rural Lands Protection Board $1 294 000.00 To assist rural financial counsellors to cover additional costs To assist with operating expenses during drought periods State Council Rural Lands Protection Board $425 000.00 Richmond Valley Business & Rural Financial Counselling Service $75 000.00 Contribution to Farmers of the Year awards, NSW Farmers’ Association $9 000.00 Richmond Valley Business & Rural Financial Counselling Service $50 250.00 Agricultural Society Council of New South Wales $2 000.00 Castlereagh Advisory Centre $50 000.00 To meet regulatory and accounting expenses Macquarie Rural Advisory Service $50 000.00 NSW Grains Board $250 000.00 North West Rural Counselling Service $50 000.00 Southern Riverina Rural Advisory Service $50 000.00 Wentworth Balranald Rural Counselling Service $50 000.00

132 NSW Department of Primary Industries ANNUAL REPORT 2004–05 APPENDICES

22. Funds granted to non-government community organisations (continued)

Castlereagh Advisory Centre $33 500.00 Bogan Advisory Service $8 250.00 Macquarie Rural Advisory Service $33 500.00 Brewarrina & District Rural Counselling Service $8 250.00 North West Rural Counselling Service $33 500.00 Central West Rural Financial Counselling Service $8 250.00 Southern Riverina Rural Advisory Service $33 500.00 Gunnedah & District Rural Counselling Service $8 250.00 Wentworth Balranald Rural Counselling Service $33 500.00 Lower Hunter/Manning Rural Counselling Service $8 250.00 Bogan Advisory Service $25 000.00 Murrumbidgee Valley Rural Financial Counselling Bourke Rural Counselling Service $25 000.00 Service $8 250.00 Brewarrina & District Rural Counselling Service $25 000.00 New England Rural Counselling Service $8 250.00 Central West Rural Financial Counselling Service $25 000.00 Southern Tablelands Rural Counselling Service $8 250.00 Cowra Regional Advisory Service $25 000.00 Lower Lachlan Community Services $6 752.00 Forbes Rural Counselling Service $25 000.00 Sponsorship of 2005 Royal Easter Show Gunnedah & District Rural Counselling Service $25 000.00 Royal Agricultural Society of NSW $50 000.00 Lachlan Advisory Group $25 000.00 Lower Hunter / Manning Rural Counselling Service $25 000.00 To assist in providing counselling services to farmers Lower Lachlan Community Services $25 000.00 Bourke Rural Counselling Service $27 917.00 New England Rural Counselling Service $25 000.00 Bourke Rural Counselling Service $22 248.00 North East Riverina Rural Advisory Service $25 000.00 Upper Hunter Rural Counselling Service $16 750.00 Monaro Rural Counselling Service $25 000.00 Forbes Rural Counselling Service $16 667.27 Murrumbidgee Valley Rural Financial Counselling Southern Riverina Rural Advisory Service $16 500.00 Service $25 000.00 Macquarie Rural Advisory Service $16 500.00 Southern New England Rural Counselling Service $25 000.00 Cowra Regional Advisory Service $16 000.00 Southern Tablelands Rural Counselling Service $25 000.00 Lower Hunter / Manning Rural Counselling Service $13 000.00 Upper Hunter Rural Counselling Service $25 000.00 Forbes Rural Counselling Service $8 332.73 Walgett Advisory Group $25 000.00 Lachlan Advisory Group $8 250.00 Warrumbungle Rural Community $25 000.00 North East Riverina Rural Advisory Service $8 250.00 Richmond Valley Business & Rural Financial Southern New England Rural Counselling Service $8 250.00 Counselling Service $24 750.00 Upper Hunter Rural Counselling Service $8 250.00 Bogan Advisory Service $16 750.00 Walgett Advisory Group $8 250.00 Bourke Rural Counselling Service $16 750.00 Warrumbungle Rural Community $8 250.00 Brewarrina & District Rural Counselling Service $16 750.00 Monaro Rural Counselling Service $6 360.00 Central West Rural Financial Counselling Service $16 750.00 Gunnedah & District Rural Counselling Service $16 750.00 To assist in the destruction of wild dogs Lachlan Advisory Group $16 750.00 Yass Rural Lands Protection Board $24 719.28 Lower Hunter/Manning Rural Counselling Service $16 750.00 Northern New England Rural Lands Monaro Rural Counselling Service $16 750.00 Protection Board $8 540.69 Murrumbidgee Valley Rural Financial Counselling Armidale Rural Lands Protection Board $5 626.27 Service $16 750.00 Braidwood Rural Lands Protection Board $5 189.33 New England Rural Counselling Service $16 750.00 Hunter Rural Lands Protection Board $3 795.86 North East Riverina Rural Advisory Service $16 750.00 Gloucester Rural Lands Protection Board $2 847.68 Southern New England Rural Counselling Service $16 750.00 Grafton Rural Lands Protection Board $2 408.40 Southern Tablelands Rural Counselling Service $16 750.00 Cooma Rural Lands Protection Board $2 342.67 Walgett Advisory Group $16 750.00 Tamworth Rural Lands Protection Board $1 923.41 Warrumbungle Rural Community $16 750.00 Kempsey Rural Lands Protection Board $1 318.59 Castlereagh Advisory Centre $16 500.00 Goulburn Rural Lands Protection Board $1 288.11 Wentworth Balranald Rural Counselling Service $16 500.00 To off-set audit costs Cowra Regional Advisory Service $16 000.00 C B Alexander Foundation $5 000.00 Lower Lachlan Community Services $13 750.00

NSW Department of Primary Industries ANNUAL REPORT 2004–05 133 APPENDICES

23. Eastern Cod Recovery Plan

The Minister approved the recovery plan for the endangered eastern Targeted compliance operations were conducted and information freshwater cod (Maccullochella ikei) in May 2004. The plan identifies brochures, signs, media releases and field days increased community the actions required to recover the species to a position of viability understanding and awareness. in nature. NSW DPI is the lead implementation agency, however An independent review of genetic issues relating to the the plan also identifies other government agencies, authorities, conservation-stocking program was completed. The program was councils and community groups that have a role and responsibility later deferred pending the results of a broader genetic study of the to contribute to implementing recovery actions. Public authorities wild population and assessment of the success of previous stock are required to report on actions taken to implement measures for enhancement activities. which they are responsible in their annual report to Parliament. This report only relates to actions taken by NSW DPI during 2004-05 to implement the recovery measures identified in the plan. NSW DPI continued to conduct annual surveys of eastern cod populations and support post graduate studies relating to the ecology and genetics of the species. On-ground works to enhance eastern cod habitat progressed, and areas of eastern cod habitat were assessed in relation to stocking site selection and development of a strategic habitat protection/restoration plan.

24. Evaluation and improvement

NSW DPI is committed to ongoing evaluation and improvement of control operations. This assessment was in addition to a formal programs and services to both external and internal stakeholders. inquiry by the Australian Transport Safety Bureau (ATSB). To this end, the following four major reviews were undertaken in The ATSB report, released on 8 June 2005, examines the effects of 2004-05. contractual arrangements and organisational interaction on aviation Mine Safety Review safety, using the plague locust control campaign as a case study. The report identifies safety improvements. In September 2004, the Minister for Mineral Resources announced The Department is reviewing the findings of both the ATSB and a review of mine safety by the Hon. Neville Wran AC QC, with independent reports. assistance from Ms Jan McClelland and an expert panel. NSW DPI provided resources and contributed information, including Cattle tick a substantial submission. The report on the review was publicly released in April 2005. In May 2005, the Minister for Primary Industries announced a review into cattle tick fever by the former Member for Orange, Mr Garry Overall, the review found that a more cooperative approach by West. The review examined how advice is provided on cattle tick industry, unions and government on mine safety would be beneficial. issues, the use of cattle tick vaccine, introduction of Queensland The Minister is now considering the review’s 31 recommendations. cattle into NSW, and the possible use of electronic surveillance to Further details on the review appear in this report in the section on enhance existing border control. The Minister is currently considering the Biosecurity, Mine Safety and Compliance Division. Mr West’s report.

Aviation safety Commercialisation There were three separate incidents involving helicopters contracted During 2004-05, independent consultants PricewaterhouseCoopers for the 2004-05 plague locust campaign. Unfortunately, one of the were engaged to assess the opportunities for commercialisation incidents resulted in the deaths of two people and serious injuries to within the Department. A number of potential opportunities were another person. identified and are currently under consideration. The Department subsequently engaged independent consultants Aerosafe Risk Management to assess the risks involved in aerial

134 NSW Department of Primary Industries ANNUAL REPORT 2004–05 APPENDICES

Index

A commercial opportunities, 6, 26, 46, 119, 134, see also exotic diseases, 9, 30, 35, 36 Forests NSW Aboriginal initiatives, see Indigenous initiatives exploration activity, mining, 17 committee representation, 13, 97–99, 100 about NSW DPI, 2 Exploration NSW, 17 commodity prices, 10, 17 access, inside back cover export markets, 4, 8, 9, 12, 16, 35 communication, 41, 95, 96, 102, 124, 125, 130 accidents, 9, 18, 19, 34, 37, 38, 122, 134 extension and training, 3, 8, 9, 10, 13, 24, 25, 29, 34, compliance, 4, 9, 18, 34, 35, 36, 38, 46, 95, 125, 134 35, 36, 38, 39, 45 accounts payment, 45, 120–121 computers, 45 external funding, 4 Acts administered, 17, 116–117 conferences hosted, 31 addresses (offices), inside back cover consultants, 10, 11, 22, 119, 134 F advisory bodies and committees, 4, 28, 34, 36, 96, farm family gatherings, 4, 8, 34 97–99, 100, 125 consumer response, 28, 92, 93, 95, 100, 105, 126, 130 financial management information system (SAP), 5, Agriculture and Fisheries Division, 6, 7–12 contractors, 22, 23, 37 45, 96, 120 air operations, 39, 93, 119, 134 Cooperative Research Centres, 4, 9, 26, 29 financial performance, 50 amalgamation of former agencies, 1, 2, 3, 5, 41, 43, Corporate Services Division, 45–46 financial statements, 48–89 45, 46, 96 corporate structure, 6, 46 financial summary, 51 animal welfare, 8, 9, 12, 92 court cases, 118 fire management, 24 aquaculture, 8, 11, 12, 28, 29, 30, 31, 38, 120, 123, 132 credit card, 45, 92 fish passages, 4, 11, 126 assets, 4, 22, 28, 46, 96, 121 Cronulla Fisheries Centre, 121 fish stocking, 11, 12, 127, 128, 129, 134 asset rationalisation (see property disposal) customer service, 100, 107 fisheries, 8, 11, 14, 28, 29, 38, audit, 48–49, 122 D departmental facilities, 121, 129 Aurion (human resources management system), 5, 45, 96 dairy industry and research, 5, 10, 29, 46 see also commercial fishing, recreational fishing AUSVETPLAN, 35–36 DEC, see Department of Environment and fisheries officers, 34, 118, 124, 129 Conservation Fisheries trust funds, 123–131 B Department of Environment and Conservation, 11, fishing licences, 4, 46, 131 B-Pay, 45 18, 20, 24 fishing tournaments, 124, 127, 128, 130 beef industry, 9, 30, 36 Department of Infrastructure, Planning and Natural foot-and-mouth disease, 36 Resources, 9, 18, 24, 93 beekeepers, 10, 24 footrot, 36 departmental achievements 2004-05, 3 biological control agents, 38 forest certification, 24–25 departmental corporate directions, 2, 92 biosecurity, 11, 28, 35, 38 Forests NSW, 2, 3, 6, 20, 21–26, 46, 91, 94, 103 diesel particulate matter, 18 Biosecurity, Compliance and Mine Safety Division, forests safety, 25 34–38 DIPNR, see Department of Infrastructure, Planning Freedom of Information, 101 and Natural Resources Bovine Spongiform Encephalopathy (BSE) risk rating, Front Gate (computer system), 45 36 Director-General, 6, 92, 108, 109 fruit fly, 36 Building DPI (change management initiative), 5, 43, letter to the Audit Office, 48 96, 119 letter to the Minister, 1 G overview, 3–5 Game Council of NSW, 45, 46 C statement of performance, 92 gene technology, 29 canola, 12, 31 disability, clients with, 108, 130 Geological Survey of NSW, 16, 17 capital works, 16, 22, 121 employees with, 104, 106, 108 Ginkgo Mineral Sands Project, 16 carbon trading, 22, 23, 26, 94 disability plan, 106 grants to non-government organisations, 132–133 catchment management authorities, 11, 42, 96 disposal of assets, see property disposal green initiatives, see energy management; waste cattle tick, 35, 36, 134 drought, 3, 4, 8, 10, 34, 41, 45, 92, 96, 132 reduction Caulerpa, 30–31, 35, 95 drought support workers, 3, 8 greenhouse horticulture, 10 change, organisational, 5, 16, 41, 43, 93, 95, 96, 119 Drought Transport Subsidy, 3, 8, 34, 45, 132 guarantee of service quality, 100 Change Program Office, 6, 43 E chickpeas, 31 H citations, 32 Eastern Cod Recovery Plan, 134 horticulture, 8, 10, 13, 30 citrus, 35 EEO, see Equal Employment Opportunity human resources, see staffing CleanFresh, 9 electronic services delivery, 46 coal and petroleum, 3, 16, 17, 18, 20, 24, 37 emergency management, 34, 35, 36, 38, 45 I Coal Compensation Board, 46 employees, see staffing ICT (information and communications technology), Coal Compensation Scheme, 3, 42, 116 energy management, 119 5, 45, 121 code of conduct, 107–110 environmental assessments, 11, 18, 19 Indigenous initiatives, 10, 14, 41, 43, 128, 131, 132 colleges of agriculture, 10, 102 Equal Employment Opportunity data, 104, 105 Indigenous Fisheries Strategy, 14 COMET (Common Mines Environment) data system, Ethnic Affairs Priority Statement, 105–106 Indigenous staff levels, 104, 105 37 exceptional circumstances assistance, 4, 8, 41, 42 inspections, safety, 18 commercial fishing, 4, 8, 11, 38, 123 executive performance, 92–96 insurance, 25,122 NSW Department of Primary Industries ANNUAL REPORT 2004–05 135 APPENDICES

Index (continued)

int ellectual pr operty, 31 Ovine Johne’s disease , 36 shark, g r ey nurse , 30 irrigation, 10, 11, 13 o yst er farming , 11, 12, 14, 35, 42 sheep industry, 9, 12 Sno wy Riv er, 4, 11 J P species monit oring , 30 job evaluation, 119 partnerships , 4, 9, 14, 22, 26, 29, 30, 31, 46 staffing , 5, 6, 45, 46 Joint C onsultativ e C ommitt ee , 46 pa yment of accounts , 45, 120–121 Aborig inal emplo yment, 104, 105 joint v entur es , 4, 29 perf ormance of ex ecutiv e officers , 92–96 cat egories , 103–104 ph yllo x era, 36 non-English speaking backg r ound (NESB) K Pilliga r eg ion, 20 emplo yment, 104 key r esult ar eas , 2, 3–5, 41 plantations , 23 statistics , 103–104 case studies , 3, 13, 14, 20, 26, 32, 39, 43 pleur opneumonia, pigs , 30 w omen, 103, 104, 106 Ky ot o Pr ot ocol , 26 poisonous plants , 36 st one fruit, 30 policy dev elopment, 3, 42 strat eg ic dir ections , 2, 3, 41 L Primary Industries Trading Division, 6, see also For ests Strat egy, Policy and C ommunications Division, 41–42 laborat ories , 28, 29, 30, 31, 46, 121 NSW sustainability, en vir onmental , 3, 6, 16, 22, 24, 28, 30 land disposal , see pr operty disposal Primex, 8, 12, 92 legal services , 46 principal officer, see Dir ect or -General T A cts , administ er ed , 17, 116–117 printing costs , inside fr ont co v er tick f ev er, see cattle tick changes in A cts and leg islation, 19, 29, 36, 37 privacy management, 102 timber sales , 23 sig nificant judicial decisions , 118 pr ocur ement, 45 title applications , mining , 17, 19 locust contr ol campaig n, 4, 8, 39 pr omotion, of the Department, 41, 42, 95, 102, 130 To war ds 2020 (r e-in v estment plan), 4, 28, 29, 95 air craft operations , 39, 119, 134 of primary industries , 4, 9, 12, 16, 95, 102, 130 Trust funds , Fisheries , 123–131 lucerne , 31 pr operty disposal , 4, 22, 46, 121 lupins , 31 pr osecutions , 38 V Public Service A ssociation, 5, 28, 46 values , 2, 3 M publications , 8, 9, 10, 11, 12, 31, 32, 37, 41, 42, 46, 102, videoconf er encing , 45 marine parks , 6, 11, 123 125 vision, 2, 3 media, 39, 41, 42 scientific , 9, 31, 32 mine saf ety, 2, 6, 16, 18, 34, 37, 38 W mine saf ety r eview, 4, 18, 34, 93, 134 Q wast e r eduction, 119 Mineral Resour ces Division, 16–19 QX disease , 35, 42, see also o yster f arming wat er r ef orm, 11 mining r o yalties , 3, 16, 19 w ebsit e , 41, 102, 125 Minist erial A dvisory C ouncil on Primary Industries R w eed contr ol , 31, 35 Sciences , 4, 28–29 r ecr eation, 24 wheat, 10, 31 Murra y Irrigation L t d , 30 r ecr eational fishing , 8, 11, 38, 124–131 w omen’s emplo yment action plan, 106 Murra y Riv er, 13, 41 r edundancy, v oluntary, 5, 22, 46 w ood supply ag r eements , 23 m y coplasmosis , pigs , 30 r ehabilitation, en vir onmental , 8, 11, 18, 19, 22 WorkC o v er NSW, 25, 37, 118, 122 r esear ch, 4, 10, 26, 28, 29, 30, 32, 35 w orkers’ compensation, 25, 122 N r esidues , pesticide , 9, 12, 35, 36, 39 W ran Review, see mine saf ety r eview National Liv est ock Identification Syst em (NLIS), 4, 9 r estructuring (staff), 5, 45 National Recr eational and Indigenous Fishing Surv ey, Ridgewa y gold and copper mine , 16 128, 131 risk management, 2, 18, 34, 35, 36, 39, 41 netw ork, communications , 45, 121 r oad saf ety, 25 North C oast floodgat es , see fish passages Rural Lands Pr ot ection Boar ds , 4, 35, 36, 39 NSW Farmers A ssociation, 4, 28, 39, 132 Rural Woman of the Year A war d , 42 NSW Food A uthority, 29, 45 Rural Women’s Netw ork, 42 NSW Rural A ssistance A uthority, 46 S O saf ety inspections , 18 Occupational Health and Saf ety, 9, 34, 37, 122 saf ety management syst em, 25 office r elocation, 16, 45, 46 saf ety perf ormance , 18, 19 oliv e oil , 30 SAP (financial management syst em), 45, 96, 120 opal mining , 17, 18 Science and Resear ch Division, 28–31 or ganisational structur e , 6, 46 scientific publications , 9, 31, 32 o v erseas tra v el , 111–115 Senior Ex ecutiv e Service , 103, 104

136 NSW Department of Primary Industries ANNUAL REPORT 2004–05 Contacts

Head Office Monday – Friday 8.30 am-4.30 pm Telephone +61 2 6391 3100 Facsimile +61 2 6391 3336 Postal Address Locked Bag 21, Orange NSW 2800 Street Address 161 Kite Street, Orange NSW 2800

Sydney Office Monday – Friday 8.30 am-4.30 pm Telephone +61 2 8289 3999 Facsimile +61 2 9286 3208 Postal Address PO Box K220, Haymarket NSW 1240 Street Address Level 6, 201 Elizabeth Street, Sydney NSW 2000

Minerals Monday – Friday 8.30 am-4.30 pm Telephone +61 2 4931 6666, or 1300 736 122 (Australia Only) Facsimile +61 2 4931 6790 Postal Address PO Box 344, Hunter Region Mail Centre 2310 Street Address 516 High Street, Maitland NSW 2320 Email [email protected]

Agriculture Monday – Friday 8.30 am-4.30 pm Telephone +61 2 6391 3100 Facsimile +61 2 6391 3336 Postal Address Locked Bag 21, Orange NSW 2800 Street Address 161 Kite Street, Orange NSW 2800 Email [email protected]

Fisheries Monday – Friday 8.30 am-4.30 pm Telephone +61 2 9527 8411, or 1300 550 474 (Australia only) Facsimile +61 2 9527 8576 Postal Address PO Box 21, Cronulla NSW 2230 Street Address 202 Nicholson Parade, Cronulla NSW 2230 Email information-advisory@fisheries.nsw.gov.au

Forests Monday – Friday 8.30 am-4.30 pm Telephone +61 2 9980 4100 Facsimile +61 2 9484 1310 Postal Address Locked Bag 23, Pennant Hills NSW 2120 Street Address Building 2 423 Pennant Hills Road, Pennant Hills NSW 2120 Email [email protected]

A complete list of NSW Department of Primary Industries offices can be found on the department’s website www.dpi.nsw.gov.au www.dpi.nsw.gov.au