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Austrade Annual Report 2012-13

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Austrade Annual Report 2012-13 COMMISSION ANNUAL REPORT 2012–13AUSTRALIANTRADE COMMISSION ANNUAL REPORT 2012–13 AUSTRALIANTRADECOMMISSION ANNUAL REPORT 2012–13 AUSTRALIAN TRADECOMMISSIONANNUAL REPORT AUSTRALIAN TRADE COMMISSIONANNUAL REPORT2012–13 COMMISSION ANNUAL REPORT2012–13 AUSTRALIAN TRADE Agency statement Ministerial responsibility Austrade contributes to Australia’s economic The Hon Dr Craig Emerson MP held the position prosperity by helping Australian businesses, of Minister for Trade and Competitiveness for the education institutions, governments and citizens duration of the reporting period. Dr Emerson also as they: held the positions of Minister Assisting the Prime Minister on Asian Century Policy from 28 October › develop international markets 2012 and Minister for Tertiary Education, Skills, › win foreign direct investment Science and Research from 25 March 2013. For › promote international education the purposes of this report, Dr Emerson is referred › seek consular and passport services. to as the Minister for Trade and Competitiveness. We achieve this by generating market information The Hon Justine Elliot MP held the position of and insight, promoting Australian capabilities, Parliamentary Secretary for Trade until 4 February making connections through an extensive global 2013, at which time the Hon Kelvin Thomson MP network of contacts, leveraging the badge of was appointed to the position for the remainder of government offshore and providing quality advice the reporting period. and services. We aim to create value for our business and Contact officer education sectors, and do it in a way that represents Assistant General Manager a good investment for the taxpayer. And we seek Strategy and Governance to do all this in a way that meets or exceeds all Austrade appropriate standards of ethical behaviour. GPO Box 5301 Sydney NSW 2001 Staffing overview Phone: 02 9392 2714 At 30 June 2013, Austrade employed 1,003 staff, Fax: 02 9392 2777 76 per cent of whom were employed in overseas locations and client-focused operations in Australia. www.austrade.gov.au www.austrade.gov.au/annualreport Financial performance, 2010–11 to 2012–13 2010–11 2011–12 2012–13 2013–14 actuals ($m) actuals ($m) actuals ($m) budget ($m) Departmental Appropriations 173.3 167.2 160.0 158.9 Non-appropriation revenue 26.8 20.1 17.6 22.0 Total revenue 200.1 187.3 177.5 180.9 Total expenses 218.9 201.9 192.2 198.7 Operating surplus/(deficit) (18.8) (14.6) (14.7) (17.8) Departmental capital budget 14.2 15.3 18.5 11.2 Administered expenses Export Market Development 145.4 135.1 125.9 125.4 Grants scheme Asian Century Business – – – 1.5 Engagement Plan CONTENTS Highlights from 2012–13 ii PART THREE Letter of transmittal iv MANAGEMENT AND ACCOUNTABILITY 83 Accountability and management of resources 84 PART ONE Corporate governance 84 AGENCY OVERVIEW 1 Risk management 91 Chief Executive Officer’s report 2 Legislative framework and external scrutiny 93 Organisational structure 5 Management of human resources 94 About Austrade 6 Financial management and business Performance framework 7 assurance 102 Austrade’s network 8 Managing knowledge and information 106 Australia’s exporter community 10 PART FOUR PART TWO FINANCIAL STATEMENTS 109 PERFORMANCE REPORTING 11 Financial performance 110 Outcome 1 12 Financial statements 111 Program 1.1: Trade, education and Independent auditor’s report 113 investment promotion 12 Certification of financial statements 115 Developing international markets for Notes to and forming part of the Australian businesses 13 financial statements 127 Australia’s trade flows 18 Marketing Australian education internationally 39 PART FIVE Attracting productive foreign direct APPENDIXES 177 investment to Australia 48 A Staffing overview 178 Promoting Australia internationally and B Austrade locations in Australia raising awareness of the benefits of trade (including TradeStart) 183 and investment 55 C Client Service Charter 186 Contributing to whole-of-government policy D Work health and safety 188 development 61 E Financial and staffing resources 190 Program 1.2: Trade development F Ecologically sustainable development schemes—Export Market and environmental performance 192 Development Grants 69 G Advertising and market research 195 Administering the Export Market H List of requirements 198 Development Grants scheme 70 Outcome 2 79 Abbreviations and acronyms 203 Program 2.1: Consular and Index 204 passport services 79 Auditors 212 Austrade-managed consulates 80 Contents / i HIGHLIGHTS FROM THE YEAR 2012–13 Strengthening Austrade’s Promotion and attraction of foreign focus on Asia direct investment into Australia › As part of the Australian Government’s › Austrade is focused on seven inward investment commitment to help businesses expand in Asia’s priorities agreed with Australian and state and emerging and growth markets, Austrade opened territory government agencies. During 2012–13, a new office in Yangon, Myanmar, in June 2013 Austrade contributed significantly to 69 (see page 64). inward investment outcomes, with more than › At the end of 2012–13, 60 per cent of Austrade’s 75 per cent of these outcomes falling within 558 international staff positions were based the priority areas. in Asia and approximately 400 Austrade › Austrade worked closely with state and territory employees spoke one or more Asian languages governments to provide support for 60 site (see page 96). visits and assistance with 91 investment › In March 2013, Austrade ran 17 seminars across projects that contributed to current and future the country to present Australian businesses with investment outcomes. Austrade’s network trade, investment and education opportunities delivered valued insights to government in Asia. Thirteen Senior Trade Commissioners agencies that will help improve Australia’s and three Trade Commissioners, all from Asian competitiveness as a destination for foreign markets, briefed audiences on Asia-wide direct investment (see page 48). insights and sector-specific market opportunities (see page 63). International education promotion › Austrade commenced administration of the Asian › Since 1 July 2011, Austrade has administered Century Business Engagement Plan, a merit- the Study in Australia website. During the year, based, competitive grants program which was Austrade undertook the first major upgrade to announced as part of the Australia in the Asian www.studyinaustralia.gov.au since its inception Century White Paper. Applications for the 2013–14 in 2001. grant round closed in April 2013, with a total of 95 › Austrade also increased the take-up of the applications received and 27 grants announced in Future Unlimited brand by the Australian June 2013 (see page 34). education sector and deployed the brand at education-related events and activities around the world (see page 39). ii / Australian Trade Commission. Annual Report 2012–13 Embedding the Australia Export Market Development Unlimited brand Grants scheme › Funding for the Austrade-administered Building › During the year, the Minister for Trade and Brand Australia program came to a close in Competitiveness announced changes to the 2012–13. During the year, Austrade continued to Export Market Development Grants (EMDG) embed the Australia Unlimited brand, which will scheme to provide greater incentive for continue to be available for use by industry and exporters to focus on growth and emerging government stakeholders (see page 57). markets in Asia and beyond. Legislation to support these changes had not been passed by Australian Export Awards Parliament at June 2013 (see page 70). celebrates 50th anniversary › A total of $120.4 million in EMDG payments was made in 2012–13. › The Australian Export Awards, organised by Austrade and the Australian Chamber of Commerce and Industry, is one of the longest- Major sporting events promotion running business awards programs in Australia. › In 2012–13, Austrade promoted Australia’s The 50th year of the Australian Export Awards expertise in major sporting events, including recognised Australia’s top exporters for 2012 bidding, planning, operations, staging services, and celebrated half a century of Australian ceremonies, and venue design and construction exporting success (see page 59). at the London 2012 Olympic Games and opportunities in Brazil, where the FIFA 2014 Consular and passport services World Cup and the Rio de Janeiro 2016 Olympic Games will be held (see page 58). › Nearly 100,000 Australians received consular and passport services from Austrade staff during the year. At 30 June 2013, Austrade operated consulates in 171 overseas locations, providing a full range of consular and passport services to Australian travellers and Australian nationals living overseas (see page 79). 1 Operations in Tripoli were suspended during 2012–13. Highlights from 2012–13 / iii Chief Executive Officer 23 September 2013 Minister for Trade and Investment Parliament House Canberra ACT 2600 Dear Minister I am pleased to present to you the Australian Trade Commission (Austrade) Annual Report for the financial year 2012–13. This report has been prepared in accordance with section 92 of the Australian Trade Commission Act 1985. Subsection 92(1) of the Act requires the Chief Executive Officer to, as soon as practicable after 30 June in each financial year, prepare and give to the Minister a report on the Commission’s operations during that financial year. I certify that Austrade has complied with the Commonwealth Fraud Control Guidelines. During 2012–13, the agency prepared fraud risk assessments
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