Annual Report 2009-2010 Vision, mission and the RDL way

Mission Our mission is to plan and manage Western Australia’s State lands, and facilitate the development of sustainable regional communities so they have a sense of purpose and control over their future. Vision Our vision is to have well-managed State lands and strong, vibrant communities that build and deliver opportunities, facilities and services appropriate to their people. The RDL Way The RDL way is to be professional in everything we do, act with confidence and courage, connect with each other, our customers and the community, and show and value appreciation. Contents

Mission, vision and the RDL way Inside front cover DISCLOSURE AND LEGAL COMPLIANCE 42 Statement of compliance with the Financial Management Act 2006 ii Employment and industrial relations 42 Message from the Director General 1 Staff profile 43 Staffing policies and recruitment 43 OVERVIEW OF THE AGENCY 2 Governance disclosures 43 Executive summary 2 Disability access and inclusion plan outcomes 43 Our core business 4 Statement of compliance with public sector standards 44 Fast facts 5 Record keeping plans 44 Operational structure 6 Advertising under the Electoral Act 1907 45 Responsible Minister 6 Substantive equality 45 Organisational structure 7 Occupational safety, health and injury management 47 Senior officers 8 Enabling legislation 10 FINANCIAL STATEMENTS 48 Performance management framework 12 Auditor General Independent audit opinion 48 Certification of financial statements 49 AGENCY PERFORMANCE 14 Financial statements 49 Major Regional Projects 14 Regional Development Policy and Operations 22 KEY PERFORMANCE INDICATORS 80 Ord-East Kimberley Expansion 26 Certification of key performance indicators 80 Community Resource Centres 30 Key performance indicators 81 Lands 34 CONTACT DETAILS Inside back cover SIGNIFICANT ISSUES AND TRENDS 40

i The 2009-10 financial year has seen the appointment of the Western Australian Statement of Compliance with the Message from the Director General Regional Development Trust, of which I am a member. The Trust provides strategic oversight of the Royalties for Regions Fund. Working with the Regional Development Financial Management Act 2006 The 2009-10 financial year has seen the Council, the Trust advises the Minister for Regional Development on the fund’s start of a new era in regional development strategic direction and priorities. FOR YEAR ENDED 30 JUNE 2010 in Western Australia. RDL works closely with the Regional Development Commissions and Council to ensure The Department of Regional Development sound advice is given to the Minister on priority regional issues. To the Minister for Regional Development; Lands and Lands (RDL) is involved in the development of towns and communities in regional Western The year ahead is another busy one for the department as more programs and Australia, and manages the State’s Crown land and projects start. It is also an exciting time for the Pastoral Lands Board as we work its pastoral estate. together to roll out the $2.25million State Pastoral Land Reform Agenda. This program will assist pastoralists in unlocking new business opportunities across almost 40 per It is the department’s role to ensure the regional cent of the State. development priorities of the State Government and Crown lands are met. In my travels I am impressed by the people I have met and worked with and the positive outlook and enthusiasm they have in their futures. Western Australia has weathered the global financial crisis better than most other economies, largely due to its resource-rich contribution to the national economy. For This year has seen the department’s profile raised on a number of fronts. I would like the third successive year Western Australia’s population has increased at a faster rate to thank my staff for their commitment and hard work they have shown. Together we than any other Australian state or territory. have set some strong foundations as we work ahead to drive change to the State.

This strong growth is creating particular challenges in providing high quality essential services and sufficient infrastructure and land so that people want to visit, work, live HON BRENDON J GRYLLS MLA and stay in regional Western Australia.

In accordance with section 63 of the Financial Management Act 2006, we hereby RDL has been established to address these challenges and through funding submit for your information and presentation to Parliament, the Annual Report of the opportunities, such as the Royalties for Regions program, is working with numerous Department of Regional Development and Lands for the financial year ended 30 June stakeholders to improve infrastructure, regional community services and expand 2010. regional infrastructure and headworks. Having completed our first full year of operations I feel we have made a valuable The Annual Report has been prepared in accordance with the provisions of the contribution towards building strong and vibrant communities in regional WA. Financial Management Act 2006. This year has seen the start of major developments in our State’s north. As a result of Paul Rosair Royalties for Regions funding, nearly a billion dollars is being injected into the Pilbara Director General Cities project and $220million into the Ord-East Kimberley Expansion program. Department of Regional Development and Lands

Paul Rosair Director General Department of Regional Development and Lands Date: 14 September 2010 ii 1 One of the biggest challenges facing WA is population growth and dispersion. With 70 RDL’s major achievements in 2009-10 have included: In addition, the Community Resource Centre Network was re-branded to reflect an Overview of the agency per cent of people living in the Perth metropolitan area and 30 per cent living in the expanded role and service delivery function. A new logo with the tagline “Your local remainder of the State, WA’s population is increasing at a faster rate than any other • Royalties for Regions has committed nearly $1billion dollars to the Pilbara Cities connection” strongly reinforces the purpose of each centre. EXECUTIVE SUMMARY State in Australia. Initiative to create more modern, vibrant cities and regional centres that can The Department of Regional Development and Lands (RDL) manages the State’s Crown support and deliver a skilled workforce for major economic projects. Thanks to an increase in baseline funding through Royalties for Regions, eight new Land and pastoral estate, and is involved in the development and revitalisation of The Department of Regional Development and Lands plays a key role in encouraging • The creation of a fuel subsidy card which has provided more than 27 000 country Community Resource Centres were opened around the State in 2009-10 and more towns and communities in regional Western Australia. people to see regional WA as a viable place to live, work and bring up a family. It is aged pensioners with $500 per year to help cover travel costs and improve quality than $8million was provided to assist the existing Community Resource Centres to also a major government agency helping to provide infrastructure and improvements of life. expand their services. The department was formed on 1 July 2009, to bring a new focus to regional WA and in social and community amenity that is making country living more attractive. • Royalties for Regions allocated $2million to the Karratha Service Workers RDL was instrumental in providing land for the new Fiona Stanley Hospital at to support economic growth in the State by improving amenities and services in Accommodation initiative to provide affordable accommodation to service regional communities. Under the Liberal-National State Government Royalties for Regions program, the Murdoch and worked collaboratively with stakeholders to finalise the agreements to equivalent of 25 per cent of the State’s annual mining and onshore petroleum royalties workers in the Pilbara. enable construction of the hospital to start. The Department of Regional Development and Lands is responsible for overseeing the is returned to regional WA. Since its launch in December 2008 $562million has been • $45million was provided through Royalties for Regions via the Regional Grants State Government’s Royalties for Regions initiative, managing key projects such as spent on major social and infrastructure projects in regional communities throughout Scheme to improve economic and community infrastructure and services in The Karratha Land Use Agreement, signed by the department and the Ngarluma the Ord expansion and East Kimberley infrastructure project, and is responsible for the State. regional Western Australia. Aboriginal Corporation, allowed for the release of land in Karratha to allow for urgently regional development matters, including the State and pastoral lands functions. • Through the GROH housing project, Royalties for Regions funding of $114million needed development in the area. As WA enters a new growth phase, it will remain at the forefront of Australia’s was used towards building an additional 400 houses throughout regional Western Six divisions under an Office of the Director General form the department: Major economic development. The department, although in its infancy, will continue to Australia. In the coming financial year, the department will continue to play a key role in Regional Projects, Regional Development Policy and Operations, Ord-East Kimberley play its role in this process. Already, RDL personnel have forged new and strong • Families of school age children from remote areas received a significant increase supporting economic and community development projects in regional WA. Expansion Project, Community Resource Centre Network, Lands and Corporate partnerships with other organisations in both the private and public sectors which to the Boarding Away from Home Allowance through Royalties for Regions. Services. will assist in achieving the departments corporate goals. • RDL created an Aboriginal Advisory Committee in late 2009 to develop an Aboriginal Development and Engagement Program. With the State covering more than 2.5million square kilometres, about 93 per cent of that area is classed as Crown Land and managed by the department. This includes the • RDL formed an Aboriginal Affairs Unit and recruited an Aboriginal Affairs seabed extending to three nautical miles off-shore. Coordinator to support Aboriginal development and engagement throughout the department’s core business. • The WA Regional Development Trust was established to provide high level, independent, impartial advice and recommendations to the Minister on the Royalties for Regions fund. • The department assumed responsibility for the Country Local Government Fund from the Department of Local Government in April 2010. • In May 2010, following the establishment of the Aboriginal Development Package with the Miriuwang Gajerrong people, construction started on the 19km main irrigation channel, arterial road and drains for the expansion of the Ord irrigation Scheme. • The Garrajang Village, to accommodate 150 construction workers (50 per cent of which are local and 36 per cent are Aboriginal) on the Ord Expansion Project was completed.

2 3 Our core business Fast facts

• Since its launch in April 2009, the Royalties for Regions Country Age Pension Fuel Card has provided $500 to 28,108 Country Age Pensioners living in regional WA for fuel and taxi travel. KIMBERLEY • The Department of Regional Development and Lands manages 455 pastoral leases across Western Australia, this is equal to 36 per cent of the State. • Through the GROH housing project, Royalties for Regions has provided funding for 400 houses to be built for Government workers in regional WA. • The 106 Community Resource Centres across regional Western Australia provide Area covered Population better access to IT, government and community services for regional communities Region (thousand KM2) (current 30 June 2009) across the State. • Royalties for Regions has provided funding to Country Local Governments for Gascoyne 135,276 9,865 more than 600 infrastructure projects in regional WA under the Country Local PILBARA Government Fund. • The Regional Grants Scheme has provided funding for more than 550 Goldfields-Esperance 772,296 58,727 infrastructure, services and community projects to assist in the development of regional communities. Great Southern 38,923 58,851

Kimberley 420,799 35,009 GASCOYNE

Mid West 468,712 54,984 MIDWEST

Peel 5,522 104,877

Pilbara 506,575 47,528

South West 23,976 157,817 GOLDFIELDS-ESPERANCE Wheatbelt 155,005 74,899

WHEATBELT

PEEL

SOUTH WEST GREAT SOUTHERN

4 5 Operational structure Responsible Minister Organisational structure

ROLES AND RESPONSIBILITIES The Department of Regional Development and Lands was created on 1 July 2009. This MINISTER FOR REGIONAL brought together the Major Regional Projects and Regional Policy and Operations divisions DEVELOPMENT; LANDS from the former Department of Local Government and Regional Development, and the State Brendon Grylls and Pastoral Land Administration functions from the former Department for Planning and Infrastructure. The department was created under the Public Sector Management Act 1994 to assist the Minister for Regional Development; Lands to bring a stronger focus to regional development and Crown land administration in Western Australia. The framework of accountability in government requires that the Director General is WESTERN AUSTRALIAN REGIONAL DIRECTOR GENERAL PASTORAL LANDS primarily accountable to the Minister for the department’s activities and, through the REGIONAL DEVELOPMENT Paul Rosair BOARD Minister, to the Parliament. The Director General: The Hon. Brendon J Grylls MLA, Minister for Regional Development; Lands. DEVELOPMENT TRUST COUNCIL

• advises the Minister on portfolio issues, operating and financial performance, and any Minister assisting the Minister for State Development development that is likely to affect the department’s operations seriously; • sets, monitors and reviews the directions of the department; Minister assisting the Minister for Transport • ensures that the department’s objectives and goals are achieved; • works collaboratively with other portfolio agencies and the private sector; CORPORATE OFFICE OF THE • monitors the performance of the organisation; and SERVICES DIRECTOR GENERAL • adopts good governance practices in accordance with public sector requirements.

The department’s services are delivered through six divisions: ACTING DIRECTOR • Major Regional Projects John Mercadante • Regional Development Policy and Operations • Ord East-Kimberley Expansion • Community Resource Network Program • Lands • Corporate Services REGIONAL COMMUNITY MAJOR REGIONAL DEVELOPMENT POLICY ORD-EAST KIMBERLEY RESOURCE NETWORK PROJECTS EXPANSION LANDS The activities and responsibilities of the divisions are detailed in the Agency Performance AND OPERATIONS PROGRAM chapter – Report on Operations. The directors of each division report to the Director General.

The Corporate Executive group, which is comprised of the Director General and the directors, meets fortnightly. The group takes a leadership role in key planning and policy matters relating to corporate governance of the department, including financial and human resource management issues, risk management, priority setting and performance monitoring. DIRECTOR ACTING DIRECTOR DIRECTOR DIRECTOR ACTING DIRECTOR Colin Slattery Mike Rowe Peter Stubbs Debbie Rice Declan Morgan The group also takes the lead in adopting and modelling appropriate values and behaviours.

6 7 DECLAN MORGAN Senior officers PETER STUBBS Acting Director, Lands division Director, Ord East-Kimberley Expansion PAUL ROSAIR COLIN SLATTERY division Declan Morgan is the acting director of the Director General Director, Major Regional Projects division Lands division for the Department of Regional Peter Stubbs joined the department in July Development and Lands (RDL). Paul Rosair is the Director General of the Colin Slattery joined the Department 2009 as the Director of the Ord East-Kimberley Department of Regional Development and of Local Government and Regional Expansion Project. Before joining the department, He joined the Department of Local Government and Lands. He has held the position since the Development in March 2009 to work on the Peter worked for nine years as Chief Executive Officer Regional Development in October 2008 to work on the department was established on 1 July 2009. Royalties for Regions program. When RDL was for the Shires of Wyndham East Kimberley and Moora, Royalties for Regions program. When RDL was established established, he was appointed acting Director and for 15 years for Department of Agriculture. he was appointed acting Director of the Corporate Services Paul has worked in various roles over his career, of the Major Regional Projects division. He was division. including Director of Regional Operations for the officially confirmed as Director in May 2010. Peter’s environmental science and biology background, his experience in regional Water and Rivers Commission and Department development, and his personal connection with the Kimberley region led him to join the Declan has more than 13 years experience in the public service. He started his career of Environment. He was also Director of Business Colin has extensive experience in industry development department. at the Waters and Rivers Commission. He then worked with the former Department and Regional Operations for the Department of Water and has developed and implemented strategies on behalf of Environment as the Regional Manager for Kwinana Peel and was responsible for before being seconded to the Department of Local of the State Government. He has also been involved in environment and water. Government and Regional Development. developing and implementing financial assistance programs for various agencies. When the Department of Environment merged, Declan took a secondment to the He has worked for well over 30 years across the government sector in the portfolios In his current position, Colin manages the delivery of the department’s $4.5 billion DEBORAH RICE Department of Environment and Conservation as acting Assistant Director of Regional of environment, water, land management, Indigenous capacity building, corporate Royalties for Regions program. His division is responsible for the development of Director, Community Resource Network Services. services and natural resources management. governance and reporting systems to ensure the objectives of Royalties for Regions Program division are met. Paul also has extensive experience working across the State and has a broad Deborah Rice joined the department in perspective on issues of significance to regional Western Australia. October 2009 as the acting Director of the Community Resource Network Program division. As the Director of Major Regional Projects with the Department of Local Government She was appointed as Director of the division in and Regional Development, Paul was responsible for the implementation of the State May 2010. JOHN MERCADANTE Government’s Royalties for Regions policy. MIKE ROWE Acting Director, Corporate Services division Acting Director, Regional Development Having lived in regional Western Australia for almost Policy and Operations division 30 years, she has extensive experience working in John Mercadante joined the department as education and regional development agencies. Human Resources Manager in August 2009 Mike Rowe joined the department in January after taking a secondment from his position at 2010 as the acting Director of the Regional Department of Planning. John was appointed as Development Policy and Operations division. acting Director of Corporate Services in April 2010. Mike has worked in strategic policy development and delivery roles in the WA Public Service since He has more than 20 years’ experience in human 1993. resource management and corporate service roles across a range of State public sector organisations. His experience spans many agencies including Department of Agriculture and Food, Department of His primary function within the department includes responsibility for finance, human Environmental Protection, Department of Water, Department of Indigenous Affairs and resources, organisational development, information services, communications and legal Department of the Premier and Cabinet. services.

8 9 ADMINISTERED LEGISLATION OTHER KEY LEGISLATION Enabling legislation The Minister for Regional Development; Lands has responsibility for administering a In the performance of its functions RDL complies with the following relevant number of Acts, including: legislation: The Department of Regional Development and Lands was established as a department under the Public Sector Management Act on 1 July 2009. Royalties for Regions Act 2009 A New Tax System (Goods and Services Tax) Act 1999 (Commonwealth) Land Administration Act 1997 Auditor General Act 2006 Land Administration Amendment Act 2000 Corruption and Crime Commission Act 2003 Albany Lot 184 (Validation of Title) Act 1956 Disability Services Act 1993 Anglican Church of Australia Diocesan Trustees and Lands Act 1918 Equal Opportunity Act 1984 Anglican Church of Australia Lands Vesting Act 1892 Financial Management Act 2006 Anglican Church of Australia School Lands Act 1896 Freedom of Information Act 1992 Cambridge Endowment Lands Act 1920 Industrial Relations Act 1979 Canning Lands Revestment Act 1954 Minimum Conditions of Employment Act 1993 Caves House Disposal Act 1965 Native Title Act 1993 (Commonwealth) Chevron-Hilton Hotel Agreement Act 1960 Occupational Safety and Health Act 1984 City of Perth (Lathlain Park Reserves) Act 1950 Public Sector Management Act 1994 City of Perth (Leederville Park Lands) Act 1950 Salaries and Allowances Act 1975 East Carey Park Land Vesting Act 1957 State Records Act 2000 Fremantle City Council Lands Act 1929 State Supply Commission Act 1991 Fremantle Endowment Lands Act 1929 Workers Compensation and Injury Management Act 1981 Fremantle Reserves Surrender Act 1912 Geraldton Agricultural and Horticultural Society’s Land Act 1914 Geraldton Sailors and Soldiers’ Memorial Institute Lands Vesting Act 1933 Jennacubbine Sports Council (Incorporated) Act 1965 Native Mission Stations Act 1923 Parks and Reserves Act 1895 Perth Town Hall Act 1950 Perth Town Hall Agreement Act 1953 Regional Development Commissions Act 1993 Reserves Acts (various) Resumption Variation (Boulder-Kambalda Road) Act 1973 Returned Sailors and Soldiers’ Imperial League of Australia, W.A. Branch Incorporated, Headquarters Building Act 1933 Roman Catholic New Norcia Church Property Act 1929 Special Lease (Gypsum) Act 1918 Special Lease (Lake Clifton) Act 1916 Special Lease (Stirling Estate) Act 1916 Special Lease Enabling Act 1914 Town of Claremont (Exchange of Land) Act 1964 War Service Land Settlement Scheme Act 1954

In addition, the Minister for Regional Development; Lands is responsible for the Pastoral Lands Board, established under section 94 of the Land Administration Act 1997; the Western Australian Regional Development Trust, established under the Royalties for Regions Act 2009; and the Regional Development Council, established under section 33 of the Regional Development Commissions Act 1993.

10 11 CHANGES TO OUTCOME-BASED MANAGEMENT FRAMEWORK Performance management framework GOVERNMENT GOAL: As this is the department’s first annual report, there are no changes to the inaugural Greater focus on service delivery, infrastructure investment and economic outcome-based management framework. SHARED RESPONSIBILITIES WITH OTHER AGENCIES development to improve the overall quality of life in remote and regional areas. The Department of Regional Development and Lands works closely with a number of government and non-government agencies to deliver programs and services. The Outcome one: Outcome two: department supports the Government’s desired outcome of a greater focus on service Capacity of regional communities to develop State lands are administered to meet delivery, infrastructure investment and economic development, to improve the overall economic growth and social wellbeing is the State’s economic, social and cultural quality of life in remote and regional areas. increased. objectives. Key effectiveness indicator: Key effectiveness indicator: The department is a proactive member of a number of key strategic Client satisfaction with regional development Percentage of customers satisfied that the Directors General working groups addressing areas such as land services. management and use of Crown land is availability, streamlining government approvals, State workforce supporting the State’s economic, social and needs and Aboriginal affairs. cultural objectives.

The department works closely with agencies that receive Royalties for Regions Service one: Service two: funding in order to ensure the successful delivery of funded projects. In addition, the Regional investment. State land administration. department works in partnership with Regional Development Commissions to deliver the Regional Grants Scheme and Country Local Government Fund and in supporting Key Efficiency Indicators: Key Efficiency Indicator: the Regional Development Council. 1) average cost per funded initiative Cost per Crown land action. The department also works in partnership with LandCorp and other State administered development agencies to ensure the timely and effective release of State lands and 2) average internal cost per satellite site progression of associated approval processes. supported Service three: Regional policy. OUTCOME-BASED MANAGEMENT FRAMEWORK As the Department was formed on 1 July 2009, the 2009-10 budget papers noted that during the 2009-10 year the department would develop its outcome structure, Key Efficiency Indicators: including effectiveness and efficiency indicators. Average cost per item of written advice requiring Minister’s attention. The following outcome-based management framework has now been approved and has been submitted with the department’s 2010-11 budget papers.

12 13 ROYALTIES FOR REGIONS ACT 2009 ESTABLISHMENT OF THE WESTERN AUSTRALIAN COUNTRY LOCAL GOVERNMENT FUND Agency performance On 3 December 2009 the State Government’s Royalties for Regions Bill was given REGIONAL DEVELOPMENT TRUST The Country Local Government Fund (CLGF) supports local government in the nine Royal assent and commenced. The Royalties for Regions Act 2009 (Act) supports The Trust was established with the purpose of providing high-level, independent and regions defined in the Regional Development Commissions Act 1993. MAJOR REGIONAL PROJECTS the establishment of the Royalties for Regions Fund (Fund) to promote and facilitate impartial advice and recommendations to the Minister for Regional Development; Royalties for Regions is an historic agreement launched in December 2008 that economic, business and social development in regional Western Australia. Under Lands on the Fund. This includes providing advice on the allocation of money from An amount of $10 million was made available through CLGF in 2009-10. underlines the State Government’s long-term focus on regional development the Act, the Western Australian Regional Development Trust (the Trust) was also the Fund and on the allocation of money between the Fund’s subsidiary accounts. The throughout Western Australia. established. The Act provides a legislative base for the Royalties for Regions program’s Trust is required to report to Parliament each year. REGIONAL COMMUNITY SERVICES FUND continuing operation. In 2009-10, $88.82 million was disbursed to support priority services that have shown Through Royalties for Regions, the equivalent of 25% of the State’s mining and onshore Appointments to the Trust were made in June 2010. The Minister announced the their effectiveness in enhancing the quality of life for residents in regional areas, as petroleum royalties is returned to the State’s regional areas each year as investment Sections 3 and 4 and Parts 2 and 4 of the Act were proclaimed on 26 March 2010 and appointment of former Western Australian Senator and Rhodes Scholar Andrew well as in providing access to government services and infrastructure. in projects, infrastructure and community services. the Fund came into operation on 27 March 2010. There are three subsidiary accounts Murray as chair of the Trust for a three-year term on 16 June 2010. As an influential of the Fund: the Country Local Government Fund; the Regional Community Services Western Australian Senator, Mr Murray is an experienced legislator and policy-maker. REGIONAL INFRASTRUCTURE AND HEADWORKS FUND In the 2009-10 financial year, $619 million was provided to regional communities Fund; and the Regional Infrastructure and Headworks Fund. Section 5(d) allows for He has a strong business background as an executive, director and owner of public In 2009-10, $ 212.45 million was disbursed to support large-scale, regional through Royalties for Regions, representing less than 4% of Western Australia’s total other subsidiary accounts to be created on the recommendation of the Minister. and private companies. infrastructure and headworks projects that were acknowledged as being of strategic budget. importance to Western Australia. Part 3 Western Australian Regional Development Trust and Part 5 Consequential Three other Trust members were also appointed: The fund aims to support strong investment in regional Western Australia and Royalties for Regions focuses on building communities in regional areas through six Amendment of the Act were proclaimed on 16 July 2010 and came into operation on 17 • Sue Middleton — Australian Rural Woman of the Year 2010 help leverage investment from other sources for projects that will contribute to the policy objectives: July 2010. • Tim Shanahan — Pilbara Development Commission chair development of regional infrastructure and headworks. It also supports planning for • building capacity in regional communities infrastructure at the regional level and encourages regional communities to develop • Paul Rosair — Director General of the Department of Regional Development and infrastructure projects that benefit local organisations and communities. • retaining benefits in regional communities Lands. • improving services to regional communities • attaining sustainability The Trust will meet six times a year and on other occasions as required. Members met • expanding opportunity formally for the first time on the 16 July 2010. • growing prosperity. FUNDING INITIATIVES Royalties for Regions operates under three funds: • The Country Local Government Fund • The Regional Community Services Fund • The Regional Infrastructure and Headworks Fund.

14 15 FUNDS DISBURSED IN 2009-10 Funded agent Project description Disbursed Funded agent Project description Disbursed

COUNTRY LOCAL GOVERNMENT FUND (CLGF) REGIONAL COMMUNITY SERVICE FUND Patient Assisted Travel Scheme Exploration Incentive Scheme Royalties for Regions funding has provided an additional Funding for this scheme been designed to: Funded agent Project description Disbursed Funded agent Project description Disbursed $8.686 million in 2009-10 to improve the Patient Assisted stimulate increased greenfields exploration and $’000 $’000 Travel Scheme (PATS). PATS provides a subsidy to people hence new mineral discoveries in WA’s more remote Department of in the country who are required to travel more than 100 regional areas assist in maintaining expertise, jobs and $8,686 Up to $35,000 was provided to each country local Country Age Pension Fuel Card Health km (one way) to obtain the nearest available medical equipment involved in WA’s exploration industry during government for expert assistance in developing a An amount of $87 million has been committed to date. specialist treatment that is not available locally. Under the economic downturn send a clear signal to resource forward capital works plan that is consistent with the improved scheme, recipients will receive an increase investors around the world that Western Australia is Local Government The Country Age Pension Fuel Card provides eligible Department strategic plans and asset management plans. The $3,850 in the fuel subsidy and an increase in the fuel and serious about attracting exploration investment. Authorities pensioners in country Western Australia with $500 of Mines and $17,280 provision of adequate forward capital works plans is a accommodation subsidy. a year towards the cost of fuel and taxi travel from Petroleum prerequisite for accessing individual local government participating providers. Country age pensioners live In the medium to longer-term, this will result in an Department allocations from the CLGF in 2010-11 on modest, fixed incomes and generally do not have Boarding Away from Home Allowance improvement in the State’s proportion of exploration of Regional access to extensive public transport. This means they $15,100 This funding increases the State’s contribution to the expenditure relative to other States and encourage more Department Development and Boarding Away from Home Allowance for isolated With the transfer of the CLGF from the Department have a greater reliance on their own vehicles or taxis to positive attitudes to Western Australia’s investment of Regional Lands children from $1,215 to $2,000 per student year. This of Local Government in April 2010, RDL received an $275 attend appointments, undertake recreational activities, Department of climate. Overall this initiative will enhance the Development and ensures that all students, regardless of their remoteness $1,800 allocation for administration. go shopping or visit family and friends. The fuel card Education development of regional infrastructure, facilitate across- Lands provides support for the transport needs of an estimated or isolation, should have opportunities to develop the government strategic regional projects and enhance the 45,000 age pensioners living in regional areas. The skills, knowledge and confidence they need to achieve ability to maintain and build capacity in the industry. Up to $100,000 was provided through each of the nine their individual potential and contribute to the social Regional Development Commissions to support regional number of cards issued during the year was 28,108 with $15.1 million spent on fuel including $0.5 million on taxis. and economic development of Western Australia. Regional Grants Scheme Regional groups of country local governments to identify, scope In the 2009-10 contestable round of the Regional Grants Development and plan regional infrastructure priorities. The provision $900 Royal Flying Doctor Service Community Resource Centres Scheme (RGS), 233 projects in regional Western Australia, Commissions of adequate business cases for each regional priority A total of $29.888 million has been committed to date The WA Community Resource Centres form a cooperative valued at over $140 million, received more than $27 infrastructure project is a prerequisite for the regional network of more than 100 not-for-profit community to the Royal Flying Doctor Service (RFDS). The RFDS Department million. component of CLGF in 2010-11. owned and operated facilities providing small rural and (Western Operations) is a not-for-profit organisation of Regional remote communities with local access to technology, $6,000 The funding is provided to assist in providing Department of Local Government (DLG) was provided providing aero-medical evacuations across Western Development and information, training and other services. WA Community infrastructure, services and community projects, with $2.475 million to deliver complementary capacity Australia. It also provides a range of visiting medical Lands Resource Centres enhance delivery and diversity of including the provision of headworks, and to assist in building initiatives, with a particular focus on strategic services to remote and rural areas. Regional $30,480 important community services, including commercial the broad development of the community. This includes Department of and asset management planning. In addition, up to Royalties for Regions funding has enabled the RFDS to Development $4,975 services that promote regional growth and prosperity. the establishment of services and programs that will Local Government $2.5 million was provided to DLG to assist those local Department of replace five of its ageing aircrafts and purchase three Commissions $9,165 support the development of resilient communities government groups who had formalised their position Health additional planes (bringing the fleet to a total of 14 Regional Men’s Health and contribute to regional areas being vibrant and and wish to proceed to amalgamation by investing in, for aircraft). The additional aircraft will be based at Port The Regional Men’s Health and Wellbeing (RMH) initiative interesting places in which to live and work. example, common operating systems and infrastructure. Hedland, Kalgoorlie and Jandakot. Funding has also has operated as Wheatbelt Men’s Health Inc and Alive provided extra crews and medical staff and will further and Well (Inc) since 2001 across the Wheatbelt, with The 2009-10 grants funded a diverse range of service enhance existing services. more limited extension into the Midwest, Goldfields and infrastructure projects, including community and Approval through Cabinet has provided up to $1 million Esperance, Great Southern, South West and Peel Regions. Department of sporting facility upgrades, health initiatives, support annually over three years to support the provision of The services provided under this program will be Agriculture and $310 for community events, and the expansion of tourism the first new aeromedical jet, in conjunction with funds extended to all of regional WA, providing counselling and Food WA attractions. provided by Rio Tinto mining. support to men and their families in times of situational distress. The initiative includes an education program to encourage men to take responsibility for making their health and personal resilience a priority. Gatekeeper training and suicide prevention will also be key areas in service delivery throughout these regions.

16 17 REGIONAL INFRASTRUCTURE AND HEADWORKS FUND Department Pilbara Revitalisation Unit Pilbara Health Partnership Approved Approved of Regional The key roles and functions of the Pilbara Revitalisation As part of the partnership a new state-of-the-art Funded agent Project description Funded agent Project description $250 amount amount Development and Unit are to manage and administer the Pilbara computed tomography (CT) scanner was installed at Lands Revitalisation Plan and approved projects. Nickol Bay Hospital in Karratha. This new equipment is Pilbara Cities Karratha Service Workers Accommodation $’000 benefiting patients in Karratha and the West Pilbara by Initiative The Karratha Service Workers Accommodation initiative Pilbara Underground Power reducing the need to travel to Port Hedland or Perth for will provide affordable accommodation to service An allocation of $100 million has been provided to The Pilbara Revitalisation Plan was approved by Cabinet scans. workers. It addresses the shortfall in availability by Horizon Power to fund the Pilbara Underground Power in June 2009 under the Royalties for Regions program. delivering quality, subsidised housing in a central, highly Project (PUPP). The total project cost is $130 million, Other projects include: accessible location. with the balance of project funding, around $30 million, strengthening the volunteer ambulance services Phase one of the plan focuses on five key delivery coming from relevant local authorities. Department of initiatives: providing Aboriginal liaison officers $7,990 Some $30.4 million in funding has been allocated to the Health Health – to increase the capacity of the regional health upgrading the Emergency Department medical construction of a service workers village. The village will The PUPP will provide the cyclone-affected coastal service; equipment and telehealth initiative LandCorp provide 100 accommodation units (up to 270 beds) in a $2,000 communities of Karratha, Roebourne, South Hedland Energy – to provide underground power to the towns Horizon Power providing the Emergency Management Education and mix of one, two and three-bedroom units. The units will and Onslow with a safe and reliable electricity supply, by Training Program providing new medical specialist of South Hedland, Roebourne, Karratha and Onslow replacing ageing overhead electricity infrastructure with only be available for service workers in Karratha. Office of Energy services employing a nurse practitioner in Newman ensuring energy security to the region; underground networks. The project will dramatically Water – to support projects that demonstrate the $11,880 providing scholarships, training and employment LandCorp are the Project Managers and National improve the provision of an essential service to regional feasibility of the use/reuse of water extracted during Pilbara opportunities for Indigenous people in health roles Lifestyle Villages and Ecofit homes have been awarded residents and businesses during and following adverse mining operations, as well as ground and surface water Development constructing a emergency helipad at Nickol Bay Hospital the tender for construction and onsite facility managers. weather events. Major equipment for the project has supplementation; Commission employing sexual and family health workers Site works have started and the policy surrounding been ordered and installation is planned to start in Community Development Projects – local government undertaking small hospital planning and revitalisation eligibility is being finalised. The project is scheduled for Karratha in September 2010. In 2009-10, $11.5 million Department has prioritised a range of projects that will provide the completion by the end of December 2010. had been spent on this project. Ngarluma Aboriginal Sustainable Housing - Roebourne of Regional foundation for vibrant communities; and (NASH) Development and Housing – to provide access to housing for essential Pilbara Water Opportunities The Office of Energy provides advisory services to the This initiative involves the development of 50 hectares of Lands (non-resource sector) service workers and to develop Funding has been allocated to pilot projects and PUPP Steering Committee, while the Pilbara Development land classified as unallocated Crown land, which is in the Aboriginal sustainable housing. associated works to test the feasibility of water options Commission provides the executive support services. process of being transferred to the Ngarluma Aboriginal identified in the Pilbara Regional Water Plan. In 2009-10 $380,000 was provided to these agencies for Corporation (NAC) as conditional freehold title for the Phase two is dedicated to supporting strategic initiatives their services. purpose of the NASH development. including education, culture and the arts, and sport An expression of interest process was released in Department Over time, the project envisages a 380-lot residential and recreation. These will be developed by community, October 2009 calling for submissions from the private Approved Department Funded agent Project description of Regional development, a school, seniors’ housing and a industry, State and Federal agencies together with and public sector bodies with requests for funding. Some amount $500 of Regional Development and commercial centre. Stage one of the project involves Aboriginal groups and will take into account new 24 submissions were received from large publicly listed $2,905 Development and Lands the creation of 100 lots, including 50 for social and measures arising from future regional studies and companies, government agencies, pastoral stations, Lands government employee housing, to be purchased by the regional planning. Opportunities may include industry Aboriginal corporations and small to medium private Department of Housing and 50 lots for the NAC. diversification, Aboriginal participation, cultural businesses. Submissions included options for biodiesel An initial $500,000 has been provided to Department enhancement and infrastructure development. agriculture, use of solar energy for water treatment, of Treasury and Finance in 2009-10 to conduct detailed The implementation of the Pilbara Cities Vision studies into crop, soil and water suitability, bottled water implementation planning to determine both the total (allocation of $456.8 million) will transform the region plants and the construction of pipelines. Eleven projects cost of creating 100 lots and the number of lots that into a vibrant network of communities that are not only were approved for funding totalling $2.905 million in could be created within a set budget. economically successful, but are socially sustainable. 2009-10. Approved Nickol Bay Hospital Approved Funded agent Project description Funded agent Project description amount Department of Funding will be used to boost obstetric services, build amount $4,000 Health new staff accommodation and develop a blueprint for the future needs of the hospital and the region.

18 19 Housing for Workers — South Hedland Town Centre Aboriginal Housing Kimberley Headworks Rebate Pre- Feasibility Pilbara/Gascoyne Revitalisation $15 million has been allocated to the Aboriginal Housing The Distribution Headworks Charge is a one-off charge A number of pre-feasibility assessments of water LandCorp This project seeks to rejuvenate South Hedland through $3,080 Kimberly project, with an additional $1.5 million for customers requiring a new connection to Western projects have been supported under the Pre-Feasibility the development of accommodation, amenities and disbursed to cover GST that will be recouped from the Power’s electricity network, or upgrading the capacity of Pilbara/Gascoyne funding allocation. Funding has Department social infrastructure. Kimberley Development Commission in 2010-11. This their existing connection. This charge is only required at supported the Carnarvon Artesian Basin Advisory Group of Regional Kimberley project provides for local Aboriginal organisations remote or edge-of-grid locations where tariffs would not to investigate pastoral diversification opportunities $180 Pilbara Health Equipment Development and Development to take the lead role for land assembly, housing $16,500 recover the cost of providing increased network capacity. and to make recommendations to government on Lands Commission construction and maintenance, as well as managing The current headworks charge and subsidy scheme were sustainable development opportunities utilising the Clinical and medical imaging equipment delivered the resultant housing assets. The project will add to introduced in 2007. On 3 May 2010 Cabinet endorsed a available water resource. Funding was also utilised to under this initiative includes beds and mattresses, Western Power $7,300 Department of the existing land releases and community housing submission to increase the subsidy scheme to 100% of commission an independent assessment of the Business trolleys, monitoring and acute systems, ECG units, slit $2,500 Health development programs of LandCorp and Department the charge (up to $1 million) and for $7.3 million to be Case for the Upgrade of the Gascoyne Irrigation Pipeline. lamps, sterilisers, washer disinfectors, theatre tables of Housing. It will deliver new housing and new housing used to refund customers who have paid the Headworks and instruments, fast scanners, a bladder scanner, management options for Fitzroy Crossing Charge since its inception in 2007. ultrasounds, digital general X-ray room, OPG machine Commencing in July 2010, Western Power will be and a table-top processor. General providing refunds to the customers who have paid Pilbara Revitalisation Phase two — Tom Price Sporting Regional Communications Projects the charge on the basis of the information provided Precinct An allocation of $1.2 million was provided to the to Western Power at the time of payment. There is no Department The Tom Price Sporting precinct facilities were built in Department of Commerce to construct two mobile requirement for customers to apply for a refund. of Regional the late 1970s. An upgrade of these facilities is required telephone towers in Balingup and Quongup. The $1,200 Development and Regional Airport Development Scheme Shire of Ashburton to bring it to a standard that is commensurate with $4,960 objective was to significantly improve mobile Lands This is an infrastructure development grant scheme community expectations. This funding will allow for communications coverage for the Blackwood Valley area available for regional airport owners in Western a new sports pavilion on the Clem Thompson oval, from Nannup to Balingup. Australia and is administered by the Department a refurbished Civic Centre, netball/basketball courts of Transport. Funding assistance is targeted at upgrade and lights on Minga Oval in North Tom Price. Housing for Workers – Government Regional Officers’ Housing (GROH) improving access to basic air services, providing greater Kimberley This project provides additional GROH housing sites opportunities for tourism, enabling upgrade of facilities through infrastructure development projects, funding Revitalisation throughout regional WA to address the lack of suitable Department of Department of quality housing and the impact this has on regional masterplans, developing terminals and maintaining $5,510 Ord-East Kimberley Expansion Project $114,000 Transport Housing service delivery and the sustainability of regional Aircraft Movement Areas. Generally, RADS funding is In May 2010, construction began on Phase one works, communities based on joint funding. The RADS program was boosted including the main water delivery channel and access Department of An additional 400 GROH houses will be provided under by $5.5 million Royalties for Regions funding, which road. Significant Indigenous employment outcomes $27,700 State Development this program. As at 30 June 2010, 134 houses have been will help support 36 regional airports across seven have been reached by the construction team. Phase completed. regions. Regional airports play a vital role in supporting two construction will commence in 2011, with similar businesses and tourism in Western Australia and the Aboriginal employment levels expected. Approved Funded agent Project description program ensures continuing sustainability of this vital amount Approved infrastructure. Funded agent Project description amount Approved Funded agent Project description amount

20 21 REGIONAL DEVELOPMENT POLICY AND OPERATIONS expenditure information, and regional statistical publications. Staff assisted in the RDL has also continued to assist the Commonwealth Government with developing ABORIGINAL AFFAIRS development of the initial Pilbara ‘Spotlight’ project with the Australian Bureau of the Regional Development Australia (RDA) structure in Western Australia. Regional RDL created an internal Aboriginal Affairs Advisory Committee (AAAC) in late 2009 to The Regional Development Policy and Operations division delivers its services in three Statistics and the Pilbara Development Commission. All other regions are expected to Development Commissions have representatives (up to two members) on each RDA develop an Aboriginal Development and Engagement Program. The role of the AAAC is to: main areas: develop a ‘Spotlight’ project in their regions in 2010-11. committee and RDL has two observers on the Perth RDA. • Review the current services and activities of RDL as they relate to improved • Regional policy outcomes for Indigenous people and communities. • Financial assistance During 2009-10, the Regional Policy Team began producing a series of nine A memorandum of understanding was signed between the State Minister for Regional • Provide recommendations to the Director General on opportunities for • Aboriginal affairs. publications entitled “A Region in Profile,” which will provide a summary of the Development and Commonwealth Parliamentary Secretary for Infrastructure, improvements in services and activities as they relate to improved outcomes for economies in the nine regional development commission areas. Transport, Regional Development and Local Government to collaborate on regional Aboriginal people and communities. development matters with the RDA, working in close cooperation with the State’s REGIONAL POLICY Other statistical projects initiated during 2009-10 and anticipated to start in the 2010- Regional Development Commissions. • Provide recommendations to the Director General on the development of an The Regional Policy Team’s major activities and achievements in 2009-10 were largely 11 year include: Aboriginal Affairs Unit within RDL. focussed on four core areas: • The Regional Price Index, which has been endorsed by Cabinet and will contrast RDL’s Director General attended the National Regional Development Council • Provision of executive, secretarial and administrative support to the Regional the cost of goods and services in regional Western Australia with Perth and will meeting held in Bendigo in August 2009. RDL representatives have participated Lindsay Bridge commenced work with RDL as the Aboriginal Affairs Coordinator Development Council contribute to the adjustment of the District Allowance for public servants living in in several Commonwealth Standing Committee on Regional Development (SCORD) and will focus on cross-cultural awareness training, Aboriginal employment within • Provision of data (statistical, mapping, profiles etc) and information to assist with regional areas and Management Working Group (MWG) meetings, where representatives from all RDL, and broader opportunities to support Aboriginal development and engagement regional decision making • Benchmark expenditure, which is currently under consideration and will identify states, territories and New Zealand discuss regional development issues of national throughout the department’s core business. • Delivery of policy and research on regional development issues and present a decade of public sector capital expenditure by portfolio/industry, importance. and by project description, thereby providing an insight into departmental RDL’s Director General was invited to join the Directors General Aboriginal Affairs • Communication and liaison with relevant State and Commonwealth Government Coordinating Committee (AACC). agencies. expenditure by region

The Regional Development Council resolved to meet six times a year instead of four. The Regional Policy Team also undertook a number of other key functions during The council will hold two meetings in Perth and four in regional areas. In 2009-10, the 2009-10 including: council met in Kununurra, Geraldton, Exmouth and Perth. The role of the council has • Providing secretarial, research and administrative assistance to the committee for been expanded with the introduction of Royalties for Regions. It now considers and the review of the Regional Development Commissions, chaired by the Hon Wendy provides advice to the Minister for Regional Development; Lands on strategic regional Duncan MLC projects applications submitted to it for Royalties for Regions funding. The council has • Monitoring key issues that may impact on regional development in Western established good processes for its consideration of applications and provides regular Australia, such as the Resource Super Profits Tax advice to the Minister on other significant regional development issues. • Providing secretarial, research and administrative assistance to the newly created Directors General Group comprised of directors generals from RDL, Department The policy team provided policy, research and executive support to the council. of Planning and Department of Local Government who meet to discuss regional The council commenced the development of a Regional Policy Framework including policy, planning, development and service delivery coordination across the Regional Development Strategic Priorities. Work on the policy and priority respective agencies development will continue in 2010-11. • Contributing, along with the Regional Development Council, to the development of The Regional Development Coordination Group also now meets six times a year the State Planning Strategy being developed by the Department of Planning instead of four. This group is chaired by the Director General of RDL and consists • Assuming administrative functions from the Department of Local Government of the nine chief executive officers of the Regional Development Commissions. to support the Rural, Remote and Regional Women’s Network. The network, co- This group assists in setting the agenda for each council meeting and has been funded with the Department of Agriculture and Food (WA), brings together women instrumental in developing practices, procedures and processes for the introduction of from rural, remote and regional Western Australia to promote and encourage Royalties for Regions. their contribution to their communities.

The Regional Policy Team undertook a range of tasks to manage data and support information requests. This included providing regional data on population, fishing, agriculture and post code, as well as providing regional maps, breakdowns of capital

22 23 FINANCIAL ASSISTANCE BRANCH COUNTRY LOCAL GOVERNMENT FUND REGIONAL GRANTS SCHEME The Financial Assistance Branch of the Regional Development Policy and Operations The Country Local Government Fund supports local governments within the nine The Regional Grants Scheme is administered by the nine Regional Development division has significant involvement in two key components of the Royalties for regions, as defined under the Regional Development Commission Act 1993, through the Commissions with support from RDL. Following on from a successful initial round of Regions program: the Country Local Government Fund and Regional Grants Scheme. provision of funding for infrastructure provision and renewal. funding in 2008-09, the Regional Development Commissions launched a second round of funding in 2009-10. RDL has provided $45 million in Royalties for Regions funding RDL assumed responsibility for the Country Local Government Fund from the for this round and has coordinated the statewide reporting of contestable round Department of Local Government in April 2010. The December 2009 Mid-Term Review funding and strategic projects for the nine Regional Development Commissions. resulted in a recasting of the budget for Royalties for Regions. The 2009-10 budget allocation was reduced by $130 million, of which the impact on the Country Local OTHER REGIONAL FUNDING PROGRAMS Government Fund budget was a deferral of $90 million. Working with a revised budget The Financial Assistance Branch continued to administer funding through the of $10 million for the 2009-10 year. Regional Investment Fund and Regional Collocation Scheme. There was limited funding of new projects through these funding programs and most activity centred on The department has achieved: making additional progress payments and acquitting projects when completed. • The allocation of $3.85 million as grants of up to $35,000 per country local government to develop forward capital works plans; • Resourcing of the Department of Local Government to provide asset management and strategic planning, regional business planning, and Indigenous community planning for country local governments; • The provision of $2.5 million to the Department of Local Government to assist those local government groups who have formalised their position and wish to proceed to amalgamation by investing in, for example, common operating systems and infrastructure; • The provision of $100,000 to each of the nine Regional Development Commissions to support regional groups of country local governments in the nine regions to identify, scope and plan regional infrastructure priorities; • The development of a forward capital works plan template for country local governments; and • The development of amended guidelines for the resumption of infrastructure and capital works funding for country local governments in the 2010-11 year.

24 25 ORD-EAST KIMBERLEY EXPANSION INFRASTRUCTURE DEVELOPMENT The end of the 2010 dry season (November 2010) will see the completion of Phase Project $ million Ord-East Kimberley Expansion Project infrastructure delivery is taking place in 1 supporting infrastructure and the finalisation of design and planning for Phase 2 The Ord-East Kimberley Expansion Project is a major State Government election two phases. Phase 1 will see the establishment of infrastructure including 14km of activity. A number of agencies are collaborating to achieve these deadlines, notably Health – $50 million commitment that will contribute to the successful development of Australia’s North water channel, 19km of road, hillside drains, syphon structures and a 150-person LandCorp, the Department of Water and the Department of Agriculture and Food. Redevelopment of Wyndham Health Facilities 3.4 and the transformation of Kununurra into a sustainable regional centre. accommodation village. Phase 2, set for 2011, is approximately three times the Kununurra Hospital expansion 20.0 workload, and will see secondary roads, irrigation and drainage install to support LandCorp will manage the process of marketing and delivering initial farm lots, which The West Australian Government has invested $220 million through the Royalties for 8,000ha of irrigated agricultural land. is expected to take place in late 2010 or early 2011. Short stay patient accommodation 4.0 Regions program for the development and release of 8,000 hectares (ha) of irrigated Residential rehabilitation facility 3.2 agricultural land, adding to the current 14,000ha of the Ord Irrigation Area. The Joint-venture partners Leighton Contractors Pty Limited and Indigenous Business Looking towards the 2010-2011 financial year, infrastructure aims include: addition of this land will expand the region’s economic base and provide employment, Australia were awarded the Phase one headworks contract in April 2010. Together, • Completion of Phase 1 infrastructure before the onset of the wet season in Remote aged care services 4.0 sustainability and opportunity for the community. they formed Moonamang Joint Venture and commenced construction on Phase 1 December 2010 Remote clinics 5.5 infrastructure on the 14 May 2010. The name Moonamang was chosen by Miriuwung • Finalisation of Phase 2 design The project is a collaborative partnership between the Western Australian and Federal and Gajerrong elders and is a word for ‘magpie goose’, a bird that is common to the Environmental health measures 4.3 • Development of a land sales strategy for the 8,000ha of Weaber Plains Governments, via the East Kimberley Development Package. The Federal Government irrigation area. Sobering Up Centres 0.6 has committed $195 million to specific projects to assist in addressing the current (Goomig irrigation area) in consultation with the community Health service providers housing 5.0 deficiencies in the available social, community and common-use infrastructure in the Moonamang JV have been working closely with the Miriuwung and Gajerrong people • Commencement of Phase two works in April – May 2011. East-Kimberley. to reach an employment stretch target of 25%, with a groundbreaking target of 35%. Education and Training – $64 million Employment of other Indigenous people is also a high priority, as is the employment of EAST KIMBERLEY DEVELOPMENT PACKAGE Wyndham Early Learning Activities Centre 1.6 This funding will also address social and economic disadvantages within the local local, non-indigenous members of the East Kimberley community. Moonamang JV are Indigenous population through the Aboriginal Development Package, which is being on track in reaching these milestone targets, with Indigenous employment on site at The Australian Government has committed to a $195 million investment through the Warmun Early Learning Centre 0.6 implemented by the Yawoorroong Miriuwung Gajerrong Yirrgeb Noong Dawang 35% after one month of construction. Nation Building stimulus package for the social and economic development of the Kununurra Primary School 25.0 Aboriginal Corporation (MG Corporation). East Kimberley community. This is delivered through the East Kimberley Development Kununurra District High School upgrade 15.0 The start of Phase one construction was celebrated at a launch event in Kununurra Package. The land allocated for the Project is part of Miriuwung and Gajerrong traditional land, on Friday 14 May 2010. Regional Development and Lands Minister Brendon Grylls, Kununurra School Community Library expansion 5.0 and was surrendered to the Western Australian Government in 2005 in the Ord Final together with Premier Colin Barnett, MG Corporation Chair Ted Carlton, and other State A joint assessment panel lead by Hon Gary Gray AO MP, Parliamentary Secretary for East Kimberley Teacher Training Facility 3.5 Agreement (OFA). This agreement was a major step in acknowledging Native Title and Federal dignitaries, joined together to commemorate the historic occasion. The Western and Northern Australia, and the Minister for Regional Development, and rights and moving towards a positive and sustainable future for the Miriuwung and event was symbolically held on the alignment of the M2, or Goomig Dawang irrigation supported by the Department of State Development, determined 27 specific projects Kimberley TAFE upgrade 10.0 Gajerrong people. MG Corporation was established as a direct outcome of the OFA. channel. Goomig is a Miriuwung Gajerrong word for the nearby and spectacular to target priority community needs. Community meeting rooms 2.3 Pincombe Ranges. Early Childhood Building for Jundranung Community 1.0 The 2010-2011 financial year will see the 27 projects tendered and commenced, with A worker’s village has been constructed to accommodate the Phase one and two the aim of works being completed by the end of 2012. The Department of Regional Housing – $50 million workforce. The village — which was named Garrjang, a Miriuwung Gajerrong word Development and Lands is working closely to support the Department of State Social Housing 30.0 meaning ‘waterlily’ — will accommodate up to 250 workers. It will provide an Development as the facilitator to reach these outcomes. opportunity for workers from remote areas within the East Kimberley community to Transition Housing 20.0 find employment with the project. Transport – $15.4 million

The Forward Works contract for this village was awarded in March 2010 awarded to Wyndham Port facility upgrade 10.0 Ertech Pty Ltd, who completed village infrastructure in time for commencement of Kununurra Airport upgrade 5.4 Phase 1 work in May 2010. Ertech Pty Ltd also focused on Indigenous participation Community – $15.6 million and achieved a benchmark 23% Indigenous employment. Camp operator Fleetwood prepared the village for occupancy in June 2010. Community Sporting facilities 4.2 Warringari Art Centre 1.6 Garrjang Village has been designed to suit a redundant or legacy use as a tourism facility such as a short-stay accommodation or caravan park, and is jointly managed Wyndham Picture Gardens 0.3 by the Shire of Wyndham East Kimberley and MG Corporation. Wyndham Community Jetty 5.0 MG Corporation – Gelganyem Trust shared facility 4.5 Total 195.0

26 27 ABORIGINAL DEVELOPMENT PACKAGE Progress to June 2010 includes: The Aboriginal Development Package (ADP) was a requirement of the OFA and was • An audit of the Miriuwung and Gajerrong population to determine their skills, work experience and employment aspirations, which will then be matched to negotiated by the Western Australian Government and MG Corporation. It is a MINISTERIAL funding commitment by the State Government of $12.4m over three to five years to suitable employment in the region; COUNCIL support Miriuwung and Gajerrong employment and provide a sustainable future • 6 new staff employed at MG Corporation to assist with ADP implementation’; for Miriuwung and Gajerrong people. A heads of agreement was signed by MG • Mentoring and life skills development program delivery; Corporation and the Western Australian Government in September 2009, paving the way for the ADP to be further developed and delivered. • Assessment of business opportunities for potential Miriuwung and Gajerrong businesses; Miriuwung and Gajerrong leaders recognise the ADP as a significant opportunity for • Integrated support to Moonamang JV Indigenous employees; their people to break out of a cycle of social disadvantage and welfare dependency, • Wannawork (a local Indigenous contracting firm), that is in the process of ORD-EAST KIMBERLEY COMMUNITY and it is viewed as once-in-a-lifetime opportunity. expanding from 15 to 40 employees; and MG CORPORATION DEVELOPMENT PLAN REFERENCE GROUP STEERING COMMITTEE The ADP funding is used to provide employment and training opportunities, establish • A drivers’ licence program established in partnership with the Department of and support Miriuwung and Gajerrong owned and operated businesses and support Indigenous Affairs and Wunan Job Services. MG Corporation as the facilitator. It is an innovative and flexible program that works closely with Indigenous people to develop individual employment outcomes. The ADP ORD TEAM RESPONSIBILITIES also contains strategies for the protection and management of heritage issues. The Regional Development and Lands Ord Project team is based in offices in both WEABER PLAINS Perth and Kununurra. The team has run at full capacity since April 2010. TASK GROUP The ADP is complemented by the Indigenous and Community Development Package (ICDP), which is facilitated by Moonamang JV. The ICDP was developed to prioritise The key responsibilities of the Ord Project team include ensuring outcomes are met, Indigenous and community participation in the Ord-East Kimberley Expansion managing the direction and progress of the project on behalf of Royalties for Regions, and coordinating agency actions in relation to the project. SOCIAL through employment and training opportunities within Phase one and two, and INFRASTRUCTURE funding and support for local businesses. TASK GROUP DECISION-MAKING AND CONSULTATION Some of the broader elements of the ADP include: The decision-making process for the project is managed by the Ord Project team and • The creation of funds that can be used to supplement existing training programs, involves a number of senior government Ministers, industry experts, government address barriers to employment, and reward achievement by employees and officials and other stakeholders, illustrating the whole-of-government commitment to ORD WEST BANK, the success of the project. MARITIME, PACKSADDLE employers; TASK GROUP • The introduction of intensive mentoring arrangements to support employees, their families, and employers to achieve sustained employment outcomes; The Department of Regional Development and Lands heads a Director General Steering Committee that advises a Ministerial Council, made up of the Premier, • The provision to Miriuwung and Gajerrong people and other Indigenous Minister for Regional Development, Minister for Water and Minister for Agriculture and businesses opportunities to tender for goods and services; and Food. • Support for the development of Miriuwung and Gajerrong businesses. ORD IRRIGATION LANDCORP EAST KIMBERLEY The Steering Committee is in turn advised by a Community Reference Group of local EXPANSION PROJECT Project Management DEVELOPMENT PACKAGE industry experts who engage with the East Kimberley community. Lead Agency - Deptartment of for irrigation Lead Agency - Department of Regional Development and Lands infrastructure delivery State Development Ongoing engagement with the Miriuwung and Gajerrong people takes place though MG Corporation via the Ord Project team.

ABORIGINAL FUTURE CONSTRUCTION APPROVALS COMMONWEALTH DEVELOPMENT EXPANSION WORKING WORKING IMPLEMENTATION PACKAGE WORKING GROUP GROUP GROUP GROUP

28 29 COMMUNITY RESOURCE CENTRES The outcome of the consultation was a clear message that there needed to be a REVIEW OF THE COMMUNITY RESOURCE CENTRES NEW BRAND FOR THE COMMUNITY RESOURCE NETWORK lifting of the WA Telecentre Support Branch’s profile and structure either within a The Review of the WA Community Resource Centres, completed in May 2010, provided A new brand for the Community Resource Network has been developed to reflect their COMMUNITY RESOURCE CENTRE STEERING COMMITTEE government department or as a separate corporation alongside government. A range an assessment of the scope of operations and level of governance/management expanded role and service delivery function. The new brand has been developed in The Minister for Regional Development appointed the Community Resource Centre of models were explored with the recommendations presented to the Minister and the arrangements associated with 99 Community Resource Centres. The objectives of the close consultation with the network through preliminary surveying on core values and Steering Committee in March 2009 to undertake consultation with the Telecentre Department of Regional Development and Lands. The intent of the recommendations review were to: identifiers. Network and other key stakeholders to advise him on implementing enhancements to was accepted and a restructure of the Support Branch was implemented. the existing network. • assess each Community Resource Centre (using a criteria for assessment tool), The promotion of community services, technology and education were highlighted The Telecentre Support Branch became a division in its own right and became known to identify the level of operation and services at each centre, and assign a as the core values or principles, with descriptors such as “friendly”, “helpful”, Community Resource Centre Steering Committee was comprised of the following as the Community Resource Network division. A Director was appointed in October classification level; “knowledgeable” and “professional” used to indicate how the network would like to be members: 2009 to ensure the division was well represented in the Department, had access to • highlight future demand for the services provided at the Community Resource perceived. the Regional Development Council, and had the resources to drive the change to Centres and help identify opportunities for growth in service delivery; Gail Short: Chair Community Resource Centres. The wide range of functions and unique operations of the Community Resource Annemie McAuliffe: WA Telecentre Advisory Council • assist in defining future funding requirements for each Community Resource Network as an independent body working in close and productive partnership with Don Punch: Regional Development Council A Business Development Manager was engaged in April 2010 to introduce new Centre; Government made the design brief both challenging and rewarding for all those Margaret Allen: State Library of Western Australia initiatives and programs, broker partnerships, and develop service agreements to • help establish equity in the delivery of the services provided by the Community participating in this project. Kathie Meldrum: WA Telecentre Network representative increase the Community Resource Centres’ effectiveness. Resource Centres; and Brett Sabien: Department of Regional Development and Lands • instil confidence in the governance and order of business in each centre. The new branding uses simple forms to convey the welcoming and diverse nature COMMUNITY RESOURCE CENTRE ASSOCIATION of Community Resource Centres. The logo, coupled with the tagline statement “Your The Steering Committee met to determine the scope of work, priorities and strategy, In August 2009 the Minister challenged the Telecentre Network to work collaboratively A major reason for undertaking the review was to identify the level of operation and local connection,” strongly reinforces the purpose and intentions of the network and and then undertook a series of regional meetings. It visited nineteen Telecentres and towards establishing an independent association to represent the interests of the services at each Community Resource Centre in order to determine future funding each centre. A style guide was developed for the new branding and provided to each two Development Commissions as part of the regional consultation. Central locations network and be at arm’s length from government. An allocation of $100,000 was requirements. Each Community Resource Centre received a report specific to their centre in April 2010. were chosen for the regional meetings to allow the maximum number of centres to provided to support the establishment and initial work of this proposed association. be represented. Due to distance, it was not viable to visit centres in the northern operations that included recommendations on how the centre could improve performance across the four assessment criteria of service provision, infrastructure, To assist centres with the change of name and the associated costs in promoting regions, so a presentation was delivered via a Westlink broadcast, and a DVD of this An interim working group was established to determine the level of support for an governance and human resources, and capacity building. awareness of the new brand, Royalties for Regions funding of $5,000 was made presentation was sent to centres without Westlink facilities. association, and then seek nominations for two representatives from each of the four available to each centre through the department. regions. A management committee representative and a staff representative from Using the information, management committees and staff have the opportunity to Date Regional meeting Number of centres Number of people each region have been elected and the association’s interim committee has convened implement recommendations and request an upgrade to the classification of their 2009 represented attending to develop the constitution, become incorporated and determine the association’s centre and therefore increase the level of operational funding available to the centre. 17 June Goomalling 13 26 priorities. The first annual general meeting of the association will be held at the Community Resource Centre state conference to be held in September 2010. 19 June Mullewa 8 13 The report and classification process identified: 22 June Bridgetown 10 20 • 26 Community Resource Centres operating at Level 1, providing a base level of 23 June Katanning 9 19 service, adequate infrastructure, basic governance, and some level of capacity building; 24 June Corrigin 12 25 • 64 Community Resource Centres operating at Level 2, providing a moderate level 25 June Westlink Broadcast 37 111 of service, appropriate infrastructure, reasonable governance, and a modest level of capacity building; and July Exmouth 1 3 • 9 Community Resource Centres operating at Level 3, providing a high level of TOTAL 90 217 service, very good infrastructure, robust governance and strong capacity building. • The centres that were not assessed were not operational at the time of the review. These centres will be assessed once they are established and operating effectively.

30 31 SMALL GRANTS • Rebranding Support Grant 2010 • Videoconferencing Equipment Grant 2010 WESTLINK SATELLITE SERVICES The Department of Regional Development and Lands through the Community This grant was provided to assist the centres to change their names from The Community Resource Network division of the Department of Regional Westlink continued to grow its broadcasting and production facility for the benefit of Resource Network division distributed a total of $8,004,396 to the Community Telecentres to Community Resource Centres. Development and Lands introduced Internet protocol (IP) videoconferencing into its many government and private sector clients during 2009-2010. Resource Network during the financial year. Funding was provided to assist the all Community Resource Centres. Community Resource Centres to expand their services to the community and One hundred Community Resource Centres applied for this and a total of The formation of the Department of Regional Development and Lands, Westlink’s new government. $500,000 was paid to the network. IP videoconferencing allows all Community Resource Centres to have access to agency, has created exciting new opportunities for Westlink to broaden its service videoconferencing services through the Internet using their current broadband base to include a greater regional focus in the area of special interest programming, Grants provided covered the following categories: • Trainee Support Grant connection. In the past, only Telecentres that had access to ISDN telephony (about information and training. This grant is provided to Community Resource Centres to assist with the 75% of the network) could participate in videoconferences. • Operational Support Grant employment of a trainee under national apprenticeship and traineeship This ‘ongoing’ grant is provided to assist each Community Resource Centre to employment training arrangements. Under this project, the Community Resource Centres were provided with be open for a minimum of 30 hours and to promote and provide access to State Government information. Twenty-two Community Resource Centres have applied to access funding from • IP videoconferencing equipment, comprising this category. 2 x HD Webcams – $19,080 During this financial year, 100 Community Resource Centres received a total of 2 x Digital speakerphones – $ 45,000; and $4,079,326. • Training and support in the use of IP videoconferencing. • Infrastructure and Equipment Grant 2010 This grant was provided for the Community Resource Centres to become shop- Additional funding was provided to assist Community Resource Centres to fronts for the delivery of government information and services in regional purchase additional equipment for a medium-sized videoconferencing suite, to communities across Western Australia. allow for individual or group videoconferencing.

One hundred Community Resource Centres applied for this grant and a total of One hundred Community Resource Centres have applied to access funding from $1,500,000 was paid to the network. this category.

32 33 LANDS SOUTH EAST CONTAMINATED SITES Lands division worked with the City of Kalgoorlie-Boulder and the registered Native PROJECTS NORTH A key function that the Lands division is legally required to carry out is the ACHIEVEMENTS Title claimants, the Widji People, to provide 3035 square metres of Crown land in The division has created a specialist Projects North team to facilitate initiatives investigation, identification, reporting and management of all contaminated sites on Through its Lands division, the department provides Crown land to support Forrest Street, Boulder to be a base for an emergency food distributor. Foodbank WA associated with the Pilbara Cities blueprint. The division is responsible for obtaining Crown land, in accordance with the Contaminated Sites Act 2003. communities across Western Australia. Some examples are provided here to will provide this valuable community service after being supported with funds of Native Title agreements with the Native Title claimants and the Native Title holders demonstrate the breadth of services delivered and their support for the development $195,000 through the Royalties for Regions Regional Grants Scheme. The program within the Pilbara. The focus of the negotiations is on Karratha, Newman, Port and As of June 2010, approximately 7800 potentially contaminated sites on Crown land of the State. sources food and distributes it to local welfare and community groups who provide South Hedland, Onslow and Tom Price. have been identified. From these, approximately 2800 are the responsibility of the to people in need. The group also provides a number of social benefits to the local department and to date, about half of these sites have received action to address METROPOLITAN community, including programs to educate disadvantaged families on nutrition and An in-principle agreement has been reached with the Ngarluma people over the any contamination issues. The remaining sites are managed by other agencies or are Over the past year, the department was instrumental in providing land for the new advice on saving money on food. Karratha townsite, which will release land worth an estimated $700 million on leased sites. Fiona Stanley Hospital at Murdoch. Lands division worked collaboratively with present-day value. stakeholders to finalise complex agreements and various land exchanges to enable LAND RELEASE – ALL REGIONAL TEAMS Major contaminated sites projects this year have included a detailed site investigation construction of the hospital to begin. The demand for land throughout regional Western Australia continues to increase Agreement has also been reached with the Kariyarra people on providing additional and work at the Esperance Tank 2 site. Soil impacts at the site have been delineated and the Lands division has been very active throughout the year in this area. The light industrial land (estimated to be worth $350 million) for the next 10-15 years to and will be remediated in the near future. Following this, an investigation of A second project seeks to improve the functioning of Fremantle Port. The average division is currently working with the Shire of Brookton to identify land to meet short service the growing demand within the Port and South Hedland areas. groundwater conditions will begin. size of container ships calling at Fremantle Port has increased by about 85% over to medium-term residential, commercial and light industrial demand. Once the the past 15 years and deepening of the existing harbour and channel is essential to land is confirmed with the shire, the division will work with traditional owners and The Native Title agreements not only facilitate the provision of urgently needed land A preliminary site investigation has been undertaken at the old mill site at Deanmill accommodate bigger ships at full cargo-carrying capacity. To address this matter, other stakeholders to facilitate the development and use of the land for the intended for residential, industrial, commercial and community development, they will also near Manjimup, which has necessitated a request for funding from the Department of Lands division has worked closely with the Fremantle Port Authority to provide a large purposes. provide economic, cultural and social opportunities for the Native Title claimants and Environment and Conservation Contaminated Sites Management Account so that a area of seabed land that will be used to increase the useable Port land by 27 hectares. holders. detailed site investigation can be conducted. Similar residential land release projects were completed this year in the shires of WHEATBELT Jerramungup and Cranbrook, and the division is actively working with the shires of GASCOYNE DEVELOPMENT PLAN Preliminary site investigations at former fuel depots in Ongerup and Newdegate have Under a memorandum of understanding with the Commonwealth, the Lands division Broomehill-Tambellup and Kent to identify residential land for future release. The Gascoyne Development Plan was launched by Minister for Regional Development also commenced. provides land administration services for Australia’s Indian Ocean Territories, being Brendon Grylls and Vince Catania MLA. The plan is designed to deliver strategic the Christmas and Cocos (Keeling) Islands. This year, Lands division has worked The division is also managing a large-scale land assembly project at the Shotts benefits to the Gascoyne region by funding projects through the Royalties for Regions with the Commonwealth to enable expansion of the Cocos (Keeling) Islands’ power townsite that will provide land to LandCorp for development of a heavy industrial program and facilitating the related release of Crown land by the Lands division. station and support infrastructure as part of a $50 million Federal Government precinct, including sites for a urea plant by Perdaman Industries and a char plant by boost to infrastructure. Our work involved on-island discussions with the Shire and Wesfarmers Premier Coal. Initiatives that will be delivered through the Gascoyne Development Plan will include the Department of Attorney General’s Indian Ocean Territories Office, the transfer of relocation of the Carnarvon airport, expansion of the Carnarvon horticultural area, freehold land from the Shire, re-subdivision of boundaries, cancellation of easements and the development of a new power station by Horizon Power. and the resolution of complex land assembly issues to clear a range of technical constraints on the dealings. In readiness for the plan, the Lands division has started to identify sites for industrial and residential expansion in Gascoyne towns such as Carnarvon, Exmouth and Denham, while land has already been provided for these purposes at Gascoyne Junction.

34 35 INFRASTRUCTURE CORRIDORS PASTORAL LAND PROPERTY ASSET CLEARING HOUSE LAND ADMINISTRATION ACT LEGISLATION PROJECT The Infrastructure Corridors section has the statutory responsibility for land The Pastoral Lands Board is a statutory authority established under section 94 of The Lands division, through its Property Asset Clearing House, facilitates the disposal The Land Administration Act (LAA) Legislation Project seeks to complement the acquisition and land management under the Dampier to Bunbury Pipeline Act 1997 the Land Administration Act 1997, charged with administering Western Australian of surplus government land and buildings through a web-based application. It recommendations of the August 2005 Final Report on the Review of the Land and the Land Administration Act 1997. These functions are managed by the section on pastoral leases in accordance with Part 7 of the Act. The Lands division supports provides advice to State government agencies on the disposal of assets and, in Administration Act 1997. The report calls for a wide range of amendments to the the behalf of the Dampier Bunbury Natural Gas Pipeline Land Access Minister. the functions of the Board through its Pastoral Land unit, which assists the Board conjunction with LandCorp, prepares the assets for disposal in freehold. LAA and other interfacing Acts. This is a very large and complex project, requiring in providing policy advice to the Minster, monitoring pastoral land to ensure it is extensive consultation and analysis of legislation and solutions to enhance the Infrastructure Corridors undertakes several critical roles, such as the approval of managed on an economically sustainable basis, and ensuring that lessees comply The Property Asset Clearing House is also represented on the Department of Treasury administration of the State’s Crown lands. Dial Before You Dig applications and matters involving applications for work within with the Act. and Finance’s Land Sales Consultative Committee to provide Crown land advice to or outside the pipeline corridor, to ensure the safety and integrity of the pipeline is the committee and to assist that department in achieving its land sales target of Over the past year, the project made substantial progress toward completion of maintained in accordance with the Act. The section also has responsibility for the Over the past year, the division has been managing a number of significant pastoral $250 million. The Property Asset Clearing House plays a significant role in providing drafting instructions for two major themes: investigation of matters involving allegations of encroachment within the corridor reform initiatives to stimulate economic development on pastoral leases. advice to State agencies regarding the sale of their surplus land and buildings, and an • LAA Parts 9 and 10 (acquisition of land); and is a key stakeholder in assisting with the implementation of an enforcement and operational role in preparing Cabinet-endorsed surplus properties for disposal. • LAA “Stage 2” (vesting of Crown land under other Acts). prosecution policy being researched by the Department. The Rangelands Reform initiative, to be funded through Royalties for Regions, is focussed on stimulating economic development on pastoral and other leases in the In 2009-2010, 121 surplus properties have been registered on the Clearing House for The Dampier to Bunbury Natural Gas Pipeline (DBNGP) is Australia’s longest gas rangelands, initially resolving land tenure and legal impediments. The aim of the disposal by various State government agencies and sales of $20.8 million, inclusive of Over the next year, the project aims to progress and complete drafting instructions for pipeline and one of Western Australia’s most critical pieces of energy infrastructure. tenure reform component is two-fold: GST, have been achieved. submission to Cabinet for approval to draft legislation. The DBNGP supplies natural gas from the North West Shelf of the State to industrial, 1. To give pastoral lessees more flexibility with their leases; and commercial and residential customers in Perth and the surrounding regions. 2. To create land development opportunities for new investors by realising the business and economic potential of the State’s rangelands for land development other In addition to normal operations, over the past 12 months Infrastructure Corridors has than the traditional grazing and mining land uses. been heavily involved in a key project to widen the DBNGP corridor between Kwinana and Kemerton. To widen the corridor, land will be required from 146 adjacent freehold Additionally, the new Rangelands Reform program will develop a whole-of- properties and negotiations on compensation have been concluded for 77 properties. government vision for the rangelands, encompassing targeted cross-agency activity in Compulsory acquisitions are envisaged for 33 properties, with voluntary negotiations social sustainability, environmental management, bio-security, regional development, ongoing for the remaining properties. land-use planning and streamlined government development approval processes.

There is also a need to enable and improve on Aboriginal land-based economic development. The division is brokering support and resolving tenure issues to assist economic development on Aboriginal pastoral land.

Over the past year, the division has successfully resolved statutory compliance issues on a number of Aboriginal held pastoral leases using a development approach. The division takes this approach by assisting pastoral lessees to address underlying non- compliance issues, such as a lack of essential infrastructure and poor management practices. The development approach has been broadened to include non-Aboriginal held pastoral leases.

The diversification of practices on pastoral land is a growing trend of interest to pastoral lessees who wish to conduct non-pastoral activities. The division has been active in developing pathways to implement innovative economic development, such as using the carbon economy to improve the economies of the rangelands.

36 37 WORKS MANAGEMENT SYSTEM TRANSFER OF CROWN LAND Concerted efforts have been made towards designing and building a works The Lands Division is responsible for the transfer of Crown land at prices determined Land Description Locality Area Transferee Transfer Price Valuation Reason management system to replace a number of ageing, unintegrated business systems by the Minister for Lands. Generally these prices are set in accordance with advice used for Crown land administration. from the Valuer General. However, in some instances the Minister or Cabinet will Subsidised Shire Lot 500 on DP 59022 Marion St Mount Barker 5878m2 Shire of Plantagenet $1 $290,000 approve the transfer of Crown land at prices below market value to deliver community development During the year a comprehensive business process review of all the division’s work outcomes, or to facilitate delivery of government services to the community, or as instructions was completed, realising many immediate efficiencies and resulting compensation under Indigenous Land Use Agreements (ILUAs), or as part of a whole Eventual possible in streamlining of all processes. Detailed business requirements have since been of Government strategy. Transfers do not include land exchanges, value reductions Public Transport Lot 500 on DP 65439 Geraldton-Greenough 8.3561ha $1 $6.5m transfer to LandCorp for specified. reflecting social infrastructure provision not normally required of developers, or Authority conditional tenures granted under section 75 of the Land Administration Act 1997 residential development During the 2010-2011 financial year, expressions of interest will be tendered (LAA) for social and community benefits, where the State retains equity in the land. for development or supply of a works management system that will meet these West Australian Land Local community specifications, followed by acquisition, subject to funding. Lot 501 on DP59331 Dampier Rd, Karratha 93ha $4,525,000 $21,450,000 Over the course of the year, the lands division transferred Crown land valued at Authority benefits $44.8M at discounted or nominal amounts totalling $4.5M. A table detailing these West Australian Land Local community transactions is shown right: Lot 553 on DP60246 Warambie Rd, Karratha 6.8ha $1 $16,150,000 Authority benefits

Ngarluma Aboriginal Aboriginal Economic Lot 232 on DP188414 Roebourne 3.9998ha $1 $150,000 Corporation Development

Portion of Brigade Rd To amalgamate adjoining (proposed for closure) Armadale Lot 500 on DP 62815 approx 13.5 ha $1 $290,000 lots and re-sale to for inclusion into Lots 51 Redevelopment Authority adjoining owners & 300

38 39 • The State’s strong economic performance and rapid population growth create • Another recommendation of the Economic Audit Committee relates to the Significant issues and trends particular challenges in the equitable provision of high-quality essential services, administration and release of Crown lands to support economic development. infrastructure and land so that people want to visit, work, live and stay in regional The department is preparing annual and five-year Crown land release schemes, • The vision of the Department of Regional Development and Lands is to have Western Australia. The department was established to address these challenges, supporting land releases to the State’s land developer, LandCorp, and the private well-managed State lands and strong vibrant communities that build and deliver and with the passage of the Royalties for Regions Act 2009, the Government is sector. It is also packaging Crown land release to support residential, community opportunities, facilities and services appropriate to their people. investing considerable funding to make a real difference for regional Western and infrastructure needs in priority areas such Pilbara cities, other North West Australia. Royalties for Regions provides funding to country local governments developments, and the Link Project in metropolitan Perth. • Australia has weathered the global financial crisis better than most other for infrastructure, improves regional community services, and expands regional national economies, largely due to the contribution to the national economy of infrastructure and headworks. The appointment of the Western Australian • With funding from Royalties for Regions, the department is also supporting large- Australia’s resource-rich states. Regional Western Australia is the source of much Regional Development Trust will ensure strategic oversight of the Royalties scale economic and community development projects in regional areas. The of Australia’s resource wealth, providing 62% of the nation’s mineral production for Regions Fund and the delivery of sound advice to the Minister for Regional Ord-East Kimberley Expansion project, with its construction of irrigation channels, (excluding coal), 75% of natural gas and 65% of crude oil and condensate. Development about the Fund’s strategic direction and priorities. appointment of a water service provider and its other initiatives, will bring social and economic benefits to local communities and Aboriginal people. In response • For the third successive year, Western Australia’s population has increased at • The department is responding to the recommendations of the Economic Audit to the dramatic growth being experienced in the Pilbara region, the department’s a faster rate than in any other Australian state or territory. At 30 June 2010, Committee by working with other agencies to align policy, planning, development new Pilbara Cities office will oversee the development of vibrant cities in the Western Australia’s estimated resident population increased to 2.25 million — an and implementation to improve service delivery in regional areas. The Pilbara as part of the Pilbara Revitalisation Plan. annual growth rate of 3.1%. This growth is not uniform across the State, although department is represented on both the Western Australian Planning Commission’s every non-metropolitan region’s population, in aggregate, grew over the past five State Infrastructure Coordinating Committee and the recently established • The department will begin a significant Rangelands Reform program to diversify years. The Peel, South West and Pilbara Regions were the fastest growing, with regional planning committees, and is working to streamline development commercial activities on pastoral leases, including through changing land tenure population increasing by 5.4%, 3.5% and 3.1% respectively. At the smaller, more approvals processes. In addition, the Community Resource Centre network is arrangements. It will also develop and implement a strategy for improved responsive, Local Government Area level, population is more volatile, with some being expanded and improved to provide valuable information and support management of fire, feral animals and weeds on unallocated Crown land and local government populations increasing while others decline. services to many regional and remote communities. unmanaged reserves, as part of improved risk management of departmental leases and property.

40 41 EMPLOYMENT AND INDUSTRIAL RELATIONS STAFF PROFILE Disclosure and legal compliance OPERATING ENVIRONMENT SUMMARY OF EMPLOYEES DISABILITY ACCESS AND INCLUSION PLAN OUTCOMES The department was formed on 1 July 2009 primarily from two predecessor The department was formed on 1 July 2009 and during 2009-10 received corporate 2009-10 Actual FTE MINISTERIAL DIRECTIVES departments, the Department for Planning and Infrastructure and the Department of 2009-10 services from predecessor agencies under service level agreements. During 2010- (approved FTE of 2011, the department will prepare its own Disability Access and Inclusion Plan. During • Nil Local Government and Regional Development. Headcount 233.4) 2009-2010 a number of initiatives consistent with access and inclusion outcomes were Service level agreements were implemented between RDL and two other departments progressed. These included: PRICING POLICIES OF SERVICES PROVIDED Permanent full-time 169 169 The department charges for goods and services rendered on a full or partial cost- formed out of the predecessor departments, the Department of Planning and • A commitment to consolidate the department’s metropolitan offices in a new recovery basis. Department of Local Government. Permanent part-time 24 13 building at 140 William Street in April 2011. This new and modern building provides excellent accessibility in accordance with the principles of universal These fees and charges were determined in accordance with Costing and Pricing The service level agreements covered a number of corporate services functions, Temporary full-time 38 38 design. Government Services: Guidelines for Use by Agencies in the Western Australian Public including the provision of human resource services. This ensured service and support Sector, published by the Department of Treasury and Finance. in relation to regulatory and governance requirements. • The production of publications in accordance with a style guide and accessibility Temporary part time 3 2 principles. The current list of fees and charges, Gazette 115 dated 23 Jun 2009, were implemented Subsequently, the department has established its own human resources branch in • The redesign and consolidation of departmental websites to ensure accessibility on 1 July 2009, as published in the Gazette on 23 June 2009. order to meet these requirements. TOTAL 234 222 standards are met and enhanced. The department’s current websites are provided under service level agreements and are compliant with the Website These fees and charges are available on the State Law Publisher website: During 2009-2010, the department completed its transition to the Department of As at 30 June 2010, the department had an approved FTE of 233.4 and an actual FTE Governance Framework, having been designed to be as accessible to as many www.slp.wa.gov.au Treasury and Finance Shared Services Centre of payroll services and associated of 222. During the period 2009-2010, the department commenced and finalised a users as possible. Documents on the websites can be made available in an human resources functions. number of recruitment and selection processes, resulting in an increased headcount alternative format as requested. from 197 at the end of the first quarter to 234 at the end of the fourth quarter. The From 1 July 2009 to 4 March 2010, the department’s Lands division (approximately representation of permanent officers increased from 171 to 193 and temporary • Induction training for all new staff, including raising awareness of their MAJOR CAPITAL PROJECTS responsibilities and obligations in regards to discrimination and harassment No capital projects were commenced or completed during 2009-10. two-thirds of the department) was supported by the Department of Planning for these staff numbers increased from 26 to 41. The increase in appointments represents a services. significant level of recruitment being undertaken in order to establish an operating under the Equal Opportunity Act 1984. structure for the department and to implement the Royalties for Regions program From 5 March 2010, the department assumed overall responsibility for human resources functions, and the payroll and associated human resources functions for STAFFING POLICIES AND RECRUITMENT the entire department were administered by the Department of Treasury and Finance During the period 2009-2010, the department operated in accordance with the Shared Services Centre. policies of the service -level agreement agencies. Development and implementation of department-specific policies has been initiated, with a number of key policies and The department is committed to ensuring open communication and consultation and procedures and a delegations framework developed. has established a Joint Consultative Committee to ensure matters of interest between the department, its employees and the CPSA/CSU are addressed. The department encourages and supports flexible working arrangements, including part-time employment, access to flexible start and finish times for all staff, and access to the purchase leave scheme. GOVERNANCE DISCLOSURES At the date of reporting, other than normal contracts of employment of service, no senior officers, or firms of which senior officers are members, or entities in which senior officers have substantial interests, had any interests in existing or proposed contracts with the Department of Regional Development and Lands and senior officers.

42 43 STATEMENT OF COMPLIANCE WITH PUBLIC SECTOR STANDARDS RECORD-KEEPING PLANS ADVERTISING UNDER THE ELECTORAL ACT 1907 SUBSTANTIVE EQUALITY AND CODE OF ETHICS The department is committed to meeting the requirements of the State Records Act In compliance with section 175ZE of the Electoral Act 1907, the department is The department is currently implementing the Policy Framework in the area of (Public Sector Management Act 1994, S31 (1)) 2000 through the creation and implementation of an appropriate record-keeping plan required to report on expenditure incurred during the financial year in relation to Aboriginal Land Applications. A Needs and Impact Assessment has previously The Department is committed to ensuring the highest standards of probity and that details policies, practices and standards adopted by our agency. The department advertising agencies, market research organisations, polling organisations, direct mail been conducted and found evidence of both positive practices and systemic accountability in all our interactions with our customers, community and colleagues. submitted its interim record-keeping plan in January 2010, six months after the organisations and media advertising organisations. barriers that impact on Aboriginal people who apply for State lands. In 2009-10 the The department has developed a comprehensive Code of Conduct in accordance with agency’s inception. department created an Aboriginal Affairs Unit and appointed an Aboriginal Affairs the Office of Public Sector Standards Commissioner’s Conduct Guide and Code of 2010 co-ordinator. This unit has commenced assisting the Lands division with a review Ethics. SRC Standard 2 Record-keeping Plans; Principle 6 – Compliance of the work undertaken to date and the preparation of a plan to implement further $ recommendations of the review. The department is committed to the requirement that all public sector employees Requirement 1: The efficiency and effectiveness of the organisation’s record-keeping Advertising agencies - participate in Accountable and Ethical Decision Making Workshops. As of 30 June systems is evaluated not less than once every 5 years 2010, 91% of targeted staff had met this requirement. A session was conducted in The department has undertaken a review of its existing record-keeping systems and conjunction with the Public Sector Commission and the Office of the Public Sector is in the process of developing new policies and procedures that reflect its working Market research organisations Standards Commissioner to deliver training to the executive group. environment. New staff members are required to undertake a corporate induction to ensure they -Advantage Communications and Marketing 8,174.12 are also made aware of their rights and responsibilities as public sector employees. Requirement 2: The organisation conducts a record-keeping training program The record-keeping training program is included in the staff induction program; a The department has implemented a Conflict of Interest policy and procedure to self-paced interactive document and a one-on-one information management training Polling organisations ensure potential conflicts of interest are considered within an ethical framework and session provide staff with the appropriate skills and tools to manage information and managed accordingly. records. Direct mail organisations Our human resource management practices are reviewed on a regular basis to ensure Requirement 3: The efficiency and effectiveness of the record-keeping training we meet our legislative and governance responsibilities in regards to managing program is reviewed form time to time people. As a new agency, our department has created an effective and efficient record-keeping Media advertising organisations training program. -Adcorp Australia 246,616.81 A Work and Development Plan program has been developed and implemented to encourage open and honest discussion between managers and employees not only Requirement 4: The organisation’s induction program addresses employee roles and -Media Decisions 24,792.16 regarding outcomes, but acceptable and ethical workplace behaviour. responsibilities in regard to their compliance with the organisation’s record-keeping From 1 July 2009 to 30 June 2010, there were no requests for review under Public plan. Total expenditure 279,583.09 Sector Standards in Human Resource Management. No incidents relating to workplace conduct were reported during the year. Induction and training programs have been designed and implemented to ensure all staff understand their responsibilities with regards to the good record keeping expected of government employees, contractors and board members. Each new The above expenditure includes advertising associated with recruitment of staff. employee receives an information management induction session that includes details about the record-keeping plan, technical training related to the TRIM and Objective electronic document management systems, and an explanation of roles and responsibilities related to appropriate record keeping. Additionally, the department schedules regular training sessions for all staff to ensure the organisation complies with its responsibilities under the State Records Act 2000.

44 45 STATEMENT OF AGENCY COMMITMENT TO OCCUPATIONAL SAFETY AND FORMAL MECHANISM FOR CONSULTATION WITH EMPLOYEES ON OSH ASSESSMENT OF OSH MANAGEMENT SYSTEMS OCCUPATIONAL SAFETY, HEALTH AND INJURY MANAGEMENT HEALTH AND INJURY MANAGEMENT MATTERS One of the Occupational Safety and Health Committee’s responsibilities will be to PERFORMANCE The department is committed to ensuring that its operational activities are carried out The department’s Occupational Safety and Health Committee will ensure ensure regular audits are undertaken to assess the effectiveness of occupational with full regard for the health, safety and welfare of employees, contractors and the mechanisms for employee consultation are in place. Occupational safety and health safety and health management systems. Measure Target 2009-2010 public. representatives and the committee are identified as the two main sources by which the consultative process on occupational safety and health matters in the workplace These audits will take into account several factors to determine the level of associated No. of fatalities 0 0 During 2009-2010 the department has adopted the policies and procedures will be supported. risks to the organisation’s operations, the effectiveness of the existing systems, their of predecessor agencies in accordance with service level agreements with the capability to achieve established objectives and the consequences to the department. Lost time injury/disease incidence rate 0 or 10% reduction 0.42 Department of Planning and Department of Local Government. In addition, the The Occupational Safety and Health Committee will facilitate consultation and department has established an Occupational Safety and Health Committee. cooperation between the employer and employees and is responsible for: Lost time injury/disease severity rate 0 or 10% reduction 0 Strategies and processes for commitment to occupational safety and health and Percent of injured workers returned to injury management are undertaken in conjunction with the services provided by the • making recommendations and providing assistance in the development of 100% 100% Department of Treasury and Finance Shared Services Centre. strategies to ensure the effective management of occupational safety and health; work within 28 weeks • monitoring and reviewing occupational safety and health measures (including Percentage of managers trained in OSH 50% 10% The department ensures compliance with the injury management requirements of inspections); and IM the Workers’ Compensation and Injury Management Act 1981 through a systematic approach to injury management that combines expert assistance from external • assisting in the resolution of occupational safety and health issues that arise in providers with the support of supervisors and human resource staff at the the work place; The department has identified the low level of compliance of managers trained in department. • obtaining information and consulting with the employer about proposed changes occupational safety and health and injury management and has implemented a that may affect occupational safety and health; training strategy to target 100% compliance during the 2010-2011 reporting period. • identifying training needs for employees/volunteers and supervisors/ managers; • considering matters referred to it; and • undertaking other functions assigned to it by legislation

46 47 Independent audit opinion Certification of financial statements STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2010 TO THE PARLIAMENT OF WESTERN AUSTRALIA FOR THE YEAR ENDED 30 JUNE 2010 Note 2010 DEPARTMENT OF REGIONAL DEVELOPMENT AND LANDS The accompanying financial statements of the Department of Regional Development $000 FINANCIAL STATEMENTS AND KEY PERFORMANCE INDICATORS and Lands have been prepared in compliance with the provisions of the Financial COST OF SERVICES FOR THE YEAR ENDED 30 JUNE 2010 Management Act 2006 from proper accounts and records to present fairly the financial Expenses transactions for the financial year ended 30 June 2010 and the financial position as at Employee benefits expense 6 17,232 I have audited the accounts, financial statements, controls and key performance Department of Regional Development and Lands 30 June 2010. indicators of the Department of Regional Development and Lands. Financial Statements and Key Performance Indicators Supplies and services 7 15,896 The financial statements comprise the Statement of Financial Position as at 30 for the year ended 30 June 2010 At the date of signing we are not aware of any circumstances which would render the Depreciation and amortisation expense 8 59 June 2010, and the Statement of Comprehensive Income, Statement of Changes particulars included in the financial statements misleading or inaccurate. Accommodation expenses 9 1,885 in Equity, Statement of Cash Flows, Schedule of Income and Expenses by Service, Audit Opinion Grants and subsidies 10 42,567 In my opinion, Schedule of Assets and Liabilities by Service, and Summary of Consolidated Account Loss on impairment of non-current assets 18 115 Appropriations and Income Estimates for the year then ended, a summary of (i) the financial statements are based on proper accounts and present fairly the significant accounting policies and other explanatory Notes, including Administered financial position of the Department of Regional Development and Lands at 30 Other expenses 11 3,839 transactions and balances. June 2010 and its financial performance and cash flows for the year ended on Total cost of services 81,593 that date. They are in accordance with Australian Accounting Standards and the The key performance indicators consist of key indicators of effectiveness and Treasurer’s Instructions; Income efficiency. Revenue (ii) the controls exercised by the Department provide reasonable assurance that the User charges and fees 12 441 Director General’s Responsibility for the Financial Statements and Key Performance receipt, expenditure and investment of money, the acquisition and disposal of Indicators property, and the incurring of liabilities have been in accordance with legislative S. Kerr P. Rosair Other revenue 13 14,040 The Director General is responsible for keeping proper accounts, and the preparation provisions; and Chief Finance Officer Director General Total Revenue 14,481 and fair presentation of the financial statements in accordance with Australian Date: 14 September 2010 Date: 14 September 2010 Accounting Standards and the Treasurer’s Instructions, and the key performance (iii) the key performance indicators of the Department are relevant and appropriate Total income other than income from State Government 14,481 to help users assess the Department’s performance and fairly represent the indicators. This responsibility includes establishing and maintaining internal controls NET COST OF SERVICES 67,112 relevant to the preparation and fair presentation of the financial statements and indicated performance for the year ended 30 June 2010. key performance indicators that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; making Income from State Government 14 accounting estimates that are reasonable in the circumstances; and complying with Service appropriation 31,312 the Financial Management Act 2006 and other relevant written law. Resources received free of charge 3,785 Royalties for Regions Fund 36,363 Summary of my Role Total income from State Government 71,460 As required by the Auditor General Act 2006, my responsibility is to express an opinion on the financial statements, controls and key performance indicators based COLIN MURPHY SURPLUS/(DEFICIT) FOR THE PERIOD 4,348 on my audit. This was done by testing selected samples of the audit evidence. I believe AUDITOR GENERAL that the audit evidence I have obtained is sufficient and appropriate to provide a basis 17 September 2010 OTHER COMPREHENSIVE INCOME for my audit opinion. Further information on my audit approach is provided in my Changes in asset revaluation surplus 23 172,148 audit practice statement. This document is available on the OAG website under “How Total other comprehensive income 172,148 We Audit”. An audit does not guarantee that every amount and disclosure in the financial TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 176,496 statements and key performance indicators is error free. The term “reasonable assurance” recognises that an audit does not examine all evidence and every Refer to the ‘Schedule of Income and Expenses by Service’. transaction. However, my audit procedures should identify errors or omissions The Statement of Comprehensive Income should be read in conjunction with the significant enough to adversely affect the decisions of users of the financial accompanying notes. statements and key performance indicators.

48 49 Note 2010 STATEMENT OF CASH FLOWS STATEMENT OF FINANCIAL POSITION STATEMENT OF CHANGES IN EQUITY $000 FOR THE YEAR ENDED 30 JUNE 2010 AS AT 30 JUNE 2010 FOR THE YEAR ENDED 30 JUNE 2010 EQUITY 23 Note 2010 Note 2010 Accumulated Contributed equity 116,688 Contributed Total $000 $000 Note Reserves surplus/ Reserves 172,148 equity equity CASH FLOWS FROM STATE GOVERNMENT ASSETS (deficit) Accumulated surplus/(deficit) 4,348 Service appropriation 30,997 $000 $000 $000 $000 Current Assets Capital appropriations 105 TOTAL EQUITY 293,184 Cash and cash equivalents 24 104 Balance at 1 July 2009 Holding account drawdowns 32 Refer to the ‘Schedule of Assets and Liabilities by Service’. Total comprehensive income Restricted cash and cash equivalents 15, 24 24,089 - 172,148 4,348 176,496 Royalties for Regions Fund 36,363 The Statement of Financial Position should be read in conjunction with the accompanying for the year Net cash provided by State Government 67,497 Receivables 16 27,129 notes. Transactions with owners in Amounts receivable for services 17 32 their capacity as owners: Total Current Assets 51,354 Utilised as follows: Capital appropriations 105 - - 105 CASH FLOWS FROM OPERATING ACTIVITIES Other contributions by 116,583 - - 116,583 Payments Non-Current Assets owners Employee benefits (15,235) Restricted cash and cash equivalents 15, 24 219 Distributions to owners - - - - Supplies and services (6,205) Amounts receivable for services 17 2,221 Total 116,688 172,148 4,348 293,184 Accommodation (1,282) Property, plant and equipment 18 256,348 Balance at 30 June 2010 23 116,688 172,148 4,348 293,184 Grants and subsidies (41,343) Total Non-Current Assets 258,788 GST payments on purchases (4,246) The Statement of Changes in Equity should be read in conjunction with the accompanying TOTAL ASSETS 310,142 notes. GST payments to taxation authority (2,643) Other payments (2,195) LIABILITIES Current Liabilities Receipts User charges and fees 789 Payables 20 12,471 GST receipts on sales 3,962 Provisions 21 3,782 GST receipts from taxation authority 1,486 Other current liabilities 22 66 Other receipts 12,717 Total Current Liabilities 16,319 Net cash provided by/(used in) operating activities 24 (54,195)

Non-Current Liabilities CASH FLOWS FROM INVESTING ACTIVITIES Provisions 21 635 Purchase of non-current physical assets (112) Other non-current liabilities 22 4 Net cash provided by/(used in) investing activities (112) Total Non-Current Liabilities 639 Net increase/(decrease) in cash and cash equivalents 13,190 Total Liabilities 16,958 Cash and cash equivalents at the beginning of period 11,222 CASH AND CASH EQUIVALENTS AT THE END OF PERIOD 24 24,412 NET ASSETS 293,184

The Statement of Cash Flows should be read in conjunction with the accompanying notes. 50 51 SCHEDULE OF INCOME AND EXPENSES BY SERVICE SCHEDULE OF ASSETS AND LIABILITIES BY SERVICE SUMMARY OF CONSOLIDATED ACCOUNT APPROPRIATIONS AND INCOME ESTIMATES FOR THE YEAR ENDED 30 JUNE 2010 AS AT 30 JUNE 2010 Regional State Land FOR THE YEAR ENDED 30 JUNE 2010 Regional State Land Regional Regional Policy Total 2010 2010 Total Investment Administration Investment Administration Policy Estimate Actual Variance 2010 2010 2010 2010 $000 $000 $000 2010 2010 2010 2010 $000 $000 $000 $000 Delivery Services $000 $000 $000 $000 Item 22 Net amount appropriated to deliver services 31,970 31,097 873 COST OF SERVICES Assets Amount Authorised by Other Statutes Expenses Current assets 42,388 10,528 258 53,174 - Salaries and Allowances Act 1975 215 (215) Total appropriations provided to deliver services 31,970 31,312 658 Employee benefits expense 4,237 12,031 964 17,232 Non-current assets 457 258,188 143 258,788 Supplies and services 8,612 7,032 252 15,896 Total assets 42,845 268,716 401 311,962 Capital Depreciation and amortisation 1 58 - 59 Item 122 Capital appropriations 105 105 - expense Liabilities Accommodation expenses 463 1,351 71 1,885 Current liabilities 11,421 6,114 605 18,140 GRAND TOTAL 32,075 31,417 658 Grants and subsidies 42,116 451 - 42,567 Non-current liabilities 98 498 43 639 Loss on impairment of non-current Details of Expenses by Service - 115 - 115 Total liabilities 11,519 6,612 648 18,779 assets Regional Investment 68,683 55,493 13,190

Other expenses 64 3,740 35 3,839 State Land Administration 22,373 24,778 (2,405) NET ASSETS 31,326 262,104 (246) 293,184 Regional Policy 875 1,322 (447) Total cost of services 55,493 24,778 1,322 81,593 Total Cost of Services 91,931 81,590 10,341 Less total income (4,391) (14,481) 10,090 Income The Schedule of Assets and Liabilities by Service should be read in conjunction with the accompanying Net Cost of Services 87,540 67,109 20,431 User charges and fees 40 401 - 441 notes. Adjustments (55,570) (35,798) (19,772) Other revenue 11,283 2,754 3 14,040 Total appropriations provided to deliver services 31,970 31,312 658 Total income other than income 11,323 3,155 3 14,481 from State Government Capital Expenditure Purchase of non-current physical assets 60,105 112 59,993 NET COST OF SERVICES 44,170 21,623 1,319 67,112 Adjustments for other funding sources (60,000) (7) (59,993) Capital appropriations 105 105 - Income from State Government Service appropriation 12,386 17,722 1,204 31,312 Details of Income Estimates Income disclosed as Administered Income 14,939 57,365 (42,426) Royalties for Regions Fund 36,363 - - 36,363

Resources received free of charge - 3,785 - 3,785 Adjustments comprise Royalties for Regions funding, Resources Provided Free of Charge, Total income from State movements in cash balances and other accrual items such as receivables, payables and 48,749 21,507 1,204 71,460 Government superannuation. Note 28 Explanatory statement’ provides details of any significant variations between estimates and actual results for 2009. Surplus/deficit for the period 4,579 (116) (115) 4,348

52 53 NOTES TO THE FINANCIAL STATEMENTS NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (C) REPORTING ENTITY (D) CONTRIBUTED EQUITY (A) GENERAL STATEMENT The reporting entity comprises the Department AASB Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public FOR THE YEAR ENDING 30 JUNE 2010 The financial statements constitute general purpose financial statements that have Sector Entities requires transfers in the nature of equity contributions, other than been prepared in accordance with Australian Accounting Standards, the Framework, Mission as a result of a restructure of administrative arrangements, to be designated by NOTE 1. AUSTRALIAN ACCOUNTING STANDARDS Statements of Accounting Concepts and other authoritative pronouncements of the The Department’s mission is to plan and manage Western Australia’s State lands and the Government (the owner) as contributions by owners (at the time of, or prior to GENERAL Australian Accounting Standards Board as applied by the Treasurer’s instructions. facilitate the development of sustainable regional communities so they have a sense transfer) before such transfers can be recognised as equity contributions. Capital The Department’s financial statements for the year ended 30 June 2010 have been Several of these are modified by the Treasurer’s instructions to vary application, of purpose and control over their future. appropriations have been designated as contributions by owners by TI 955 prepared in accordance with Australian Accounting Standards. The term ‘Australian disclosure, format and wording. Contributions by Owners made to Wholly Owned Public Sector Entities and have been Accounting Standards’ refers to Standards and Interpretations issued by the The Department’s operations are predominantly funded by Parliamentary credited directly to Contributed equity. Australian Accounting Standard Board (AASB). The Financial Management Act and the Treasurer’s instructions are legislative appropriations, however a number of programs administered by the Department provisions governing the preparation of financial statements and take precedence are funded from Royalties for Regions. The financial statements encompass all funds The transfer of net assets to/from other agencies, other than as a result of a The Department has adopted any applicable, new and revised Australian Accounting over Australian Accounting Standards, the Framework, Statements of Accounting through which the Department controls resources to carry on its functions. restructure of administrative arrangements, are designated as contributions by Standards from their operative dates. Concepts and other authoritative pronouncements of the Australian Accounting owners where the transfers are non-discretionary and non-reciprocal. Standards Board. Services EARLY ADOPTION OF STANDARDS The Department provides the following services: The Department cannot early adopt an Australian Accounting Standard unless Where modification is required and has had a material or significant financial effect specifically permitted by TI 1101 Application of Australian Accounting Standards and upon the reported results, details of that modification and the resulting financial effect Service 1: Regional Investment Other Pronouncements. No Australian Accounting Standards that have been issued are disclosed in the notes to the financial statements. Provide support to the regional Community Resource Centre network, the Regional or amended but not operative have been early adopted by the Department for the Development Council and Commissions. annual reporting period ended 30 June 2010. (B) BASIS OF PREPARATION The financial statements have been prepared on the accrual basis of accounting using Service 2: State Land Administration the historical cost convention, modified by the revaluation of land, buildings and State Lands administers and manages Crown land to support the needs of the infrastructure which have been measured at fair value. community of Western Australia and to deliver primary land tenure for strategic infrastructure projects. The accounting policies adopted in the preparation of the financial statements have been consistently applied throughout all periods presented unless otherwise stated. Service 3: Regional Policy This service focuses on delivering effective government policy to support regional The financial statements are presented in Australian dollars and all values are development and service delivery, including modernising legislation. rounded to the nearest thousand dollars ($’000). The Department administers assets, liabilities, income and expenses on behalf The judgements that have been made in the process of applying the Department’s of Government which are not controlled by, nor integral to the function of the accounting policies that have the most significant effect on the amounts recognised in Department. These administered balances and transactions are not recognised in the the financial statements are disclosed at note 3 ‘Judgements made by management in principal financial statements of the Department but schedules are prepared using applying accounting policies’. the same basis as the financial statements and are presented at note 35 ‘Disclosure of administered expenses and income’ and note 36 ‘Administered assets and liabilities’. The key assumptions made concerning the future, and other key sources of estimation uncertainty at the end of the reporting period that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are disclosed at note 4 ‘Key sources of estimation uncertainty’.

54 55 (E) INCOME Gains Where market-based evidence is not available, the fair value of land and buildings Depreciation Revenue recognition Gains may be realised or unrealised and are usually recognised on a net basis. These is determined on the basis of existing use. This normally applies where buildings All non-current assets having a limited useful life are systematically depreciated over Revenue is measured at the fair value of consideration received or receivable. Revenue include gains arising on the disposal of non-current assets and some revaluations of are specialised or where land use is restricted. Fair value for existing use assets their estimated useful lives in a manner that reflects the consumption of their future is recognised for the major business activities as follows: non-current assets. is determined by reference to the cost of replacing the remaining future economic economic benefits. benefits embodied in the asset, ie. the depreciated replacement cost. Where the fair Sale of goods (F) BORROWING COSTS value of buildings is determined on the depreciated replacement cost basis, the gross Land is not depreciated. Depreciation on other assets is calculated using the straight Revenue is recognised from the sale of goods and disposal of other assets when Revised AASB 123 Borrowing Costs issued in June 2007 and applicable to annual carrying amount and the accumulated depreciation are restated proportionately. line method, using rates which are reviewed annually. Estimated useful lives for each the significant risks and rewards of ownership transfer to the purchaser and can be reporting periods beginning on or after 1 January 2009 removes the option of class of depreciable asset are: measured reliably. immediate recognition as an expense of borrowing costs that are directly attributable Independent valuations of land and buildings are provided annually by the Western to the acquisition, construction or production of a qualifying asset. However, AASB Australian Land Information Authority (Valuation Services) and recognised annually to Buildings 40 years Provision of services 2009-1 Amendments to Australian Accounting Standards – Borrowing Costs of Not-for- ensure that the carrying amount does not differ materially from the asset’s fair value Computer hardware 3 to 7 years Revenue is recognised on delivery of the service to the client or by reference to the Profit Public Sector Entities [AASB 1, AASB 111 & AASB 123] issued in April 2009 and at the end of the reporting period. Office equipment 5 to 10 years stage of completion of the transaction. applicable to annual reporting periods beginning on or after 1 January 2009, amends Furniture and fittings 11 years revised AASB 123 to allow not-for-profit public sector entities to continue to choose Fair value of infrastructure has been determined by reference to the depreciated Interest whether to expense or capitalise borrowing costs relating to qualifying assets. replacement cost (existing use basis) as the assets are specialised and no market- (H) INTANGIBLE ASSETS Revenue is recognised as the interest accrues. based evidence of value is available. Land under infrastructure is included in land Capitalisation/expensing of assets (G) PROPERTY, PLANT AND EQUIPMENT AND INFRASTRUCTURE reported under note 18 ‘Property, plant and equipment’. Independent valuations are Acquisitions of intangible assets costing $5,000 or more and internally generated Service appropriations Capitalisation/expensing of assets obtained every 3 to 5 years. intangible assets costing $50,000 or more are capitalised. The cost of utilising the Service Appropriations are recognised as revenues at nominal value in the period Items of property, plant and equipment and infrastructure costing $5,000 or more are assets is expensed (amortised) over their useful life. Costs incurred below these in which the Department gains control of the appropriated funds. The Department recognised as assets and the cost of utilising assets is expensed (depreciated) over When infrastructure is revalued, the accumulated depreciation is restated thresholds are immediately expensed directly to the Statement of Comprehensive gains control of appropriated funds at the time those funds are deposited to the bank their useful lives. Items of property, plant and equipment and infrastructure costing proportionately with the change in the gross carrying amount of the asset so that the Income. account or credited to the ‘Amounts receivable for services’ (holding account) held at less than $5,000 are immediately expensed direct to the Statement of Comprehensive carrying amount of the asset after revaluation equals its revalued amount. Treasury. Income [other than where they form part of a group of similar items which are All acquired and internally developed intangible assets are initially recognised at cost. significant in total]. The most significant assumptions in estimating fair value are made in assessing For assets acquired at no cost or for nominal cost, the cost is their fair value at the Net Appropriation Determination whether to apply the existing use basis to assets and in determining estimated useful date of acquisition. The Treasurer may make a determination providing for prescribed receipts to be Initial recognition and measurement life. Professional judgement by the valuer is required where the evidence does not The cost model is applied for subsequent measurement requiring the asset to be retained for services under the control of the Department. In accordance with the All items of property, plant and equipment and infrastructure are initially recognised provide a clear distinction between market type assets and existing use assets. carried at cost less any accumulated amortisation and accumulated impairment determination specified in the 2009/2010 Budget Statements, the Department retained at cost. losses. $14.481 million in 2010 from the following: For items of property, plant and equipment and infrastructure acquired at no cost or Derecognition for nominal cost, the cost is the fair value at the date of acquisition. Upon disposal or derecognition of an item of property, plant and equipment and Amortisation for intangible assets with finite useful lives is calculated for the period of • proceeds from fees and charges; infrastructure, any revaluation surplus relating to that asset is retained in the asset the expected benefit (estimated useful life) on the straight line basis using rates which • other revenue. Subsequent measurement revaluation surplus. are reviewed annually. The Department recognises the acquisition of easements Subsequent to initial recognition as an asset, the revaluation model is used for the associated with the Dampier to Bunbury Natural Gas Pipeline as intangible assets measurement of land, buildings and infrastructure and the cost model for all other Asset revaluation surplus at cost. These assets are subject to impairment based on the active operation of the Grants, donations, gifts and other non-reciprocal contributions property, plant and equipment. Land, buildings and infrastructure are carried at fair The asset revaluation surplus is used to record increments and decrements on pipeline. Revenue is recognised at fair value when the Department obtains control over the value less accumulated depreciation (buildings and infrastructure only) and accumulated the revaluation of non-current assets as described in note 26 ‘Property, plant and assets comprising the contributions, usually when cash is received. impairment losses. All other items of property, plant and equipment are stated at equipment’. historical cost less accumulated depreciation and accumulated impairment losses. Other non-reciprocal contributions that are not contributions by owners are recognised at their fair value. Contributions of services are only recognised when Where market-based evidence is available, the fair value of land and buildings is a fair value can be reliably determined and the services would be purchased if not determined on the basis of current market buying values determined by reference donated. to recent market transactions. When buildings are revalued by reference to recent market transactions, the accumulated depreciation is eliminated against the gross Royalties for Regions funds are recognised as revenue at fair value in the period in carrying amount of the asset and the net amount restated to the revalued amount. which the Department obtains control over the funds. The Department obtains control of the funds at the time the funds are deposited into the Department’s bank account.

56 57 (K) LEASES (M) CASH AND CASH EQUIVALENTS (S) BORROWINGS (I) IMPAIRMENT OF ASSETS Finance lease rights and obligations are initially recognised, at the commencement of For the purpose of the Statement of Cash Flows, cash and cash equivalent (and All loans payable are initially recognised at cost, being the fair value of the net Property, plant and equipment, infrastructure and intangible assets are tested for the lease term, as assets and liabilities equal in amount to the fair value of the leased restricted cash and cash equivalent) assets comprise cash on hand and short-term proceeds received. Subsequent measurement is at amortised cost using the effective any indication of impairment at the end of each reporting period. Where there item or, if lower, the present value of the minimum lease payments, determined at deposits with original maturities of three months or less that are readily convertible interest rate method. is an indication of impairment, the recoverable amount is estimated. Where the the inception of the lease. The assets are disclosed as plant, equipment and vehicles to a known amount of cash and which are subject to insignificant risk of changes in recoverable amount is less than the carrying amount, the asset is considered impaired under lease, and are depreciated over the period during which the Department value, and bank overdrafts. (T) AMOUNTS DUE TO THE TREASURER and is written down to the recoverable amount and an impairment loss is recognised. is expected to benefit from their use. Minimum lease payments are apportioned The amount due to the Treasurer is in respect of a Treasurer’s Advance. Initial As the Department is a not-for-profit entity, unless an asset has been identified as a between the finance charge and the reduction of the outstanding lease liability, (N) ACCRUED SALARIES recognition and measurement, and subsequent measurement, is at the amount surplus asset, the recoverable amount is the higher of an asset’s fair value less costs to according to the interest rate implicit in the lease. Accrued salaries [refer to note 20 ‘Payables’] represent the amount due to staff but repayable. Although there is no interest charged, the amount repayable is equivalent sell and depreciated replacement cost. unpaid at the end of the financial year, as the pay date for the last pay period for that to fair value as the period of the borrowing is for less than 12 months with the effect of The Department holds operating leases for head office and a number of branch office financial year does not coincide with the end of the financial year. Accrued salaries discounting not being material. The risk of impairment is generally limited to circumstances where an asset’s buildings. Lease payments are expensed on a straight line basis over the lease term are settled within a fortnight of the financial year end. The Department considers the depreciation is materially understated, where the replacement cost is falling or where as this represents the pattern of benefits derived from the leased properties. carrying amount of accrued salaries to be equivalent to its net fair value. (U) PROVISIONS there is a significant change in useful life. Each relevant class of assets is reviewed Provisions are liabilities of uncertain timing or amount and are recognised where annually to verify that the accumulated depreciation/amortisation reflects the level The accrued salaries suspense account [refer to note 15 ‘Restricted cash and cash there is a present legal or constructive obligation as a result of a past event and when of consumption or expiration of asset’s future economic benefits and to evaluate any (L) FINANCIAL INSTRUMENTS equivalents’] consists of amounts paid annually into a suspense account over a period the outflow of resources embodying economic benefits is probable and a reliable impairment risk from falling replacement costs. In addition to cash and bank overdraft, the Department has two categories of financial of 10 financial years to largely meet the additional cash outflow in each eleventh year estimate can be made of the amount of the obligation. Provisions are reviewed at the instrument: when 27 pay days occur instead of the normal 26. No interest is received on this end of each reporting period. The Department recognises the acquisition of easements associated with the Dampier account. to Bunbury Natural Gas Pipeline as intangible assets at cost. These assets are subject • Loans and receivables; and Provisions - employee benefits to impairment based on the active operation of the pipeline. (O) AMOUNTS RECEIVABLE FOR SERVICES (HOLDING ACCOUNT) • Financial liabilities measured at amortised cost. Annual leave and long service leave The Department receives funding on an accrual basis that recognises the full annual The liability for annual and long service leave expected to be settled within 12 months The recoverable amount of assets identified as surplus assets is the higher of fair value cash and non-cash cost of services. The appropriations are paid partly in cash and after the reporting period is recognised and measured at the undiscounted amounts less costs to sell and the present value of future cash flows expected to be derived Financial instruments have been disaggregated into the following classes: partly as an asset (holding account receivable) that is accessible on the emergence of expected to be paid when the liabilities are settled. Annual and long service leave from the asset. Surplus assets carried at fair value have no risk of material impairment the cash funding requirement to cover leave entitlements and asset replacement. where fair value is determined by reference to market-based evidence. Where fair • Financial assets expected to be settled more than 12 months after the reporting period is measured value is determined by reference to depreciated replacement cost, surplus assets are (P) INVENTORIES at the present value of amounts expected to be paid when the liabilities are settled. • Cash and cash equivalents Leave liabilities are in respect of services provided by employees up to the end of the at risk of impairment and the recoverable amount is measured. Surplus assets at cost Inventories are measured at the lower of cost and net realisable value. Costs are • Restricted cash and cash equivalents reporting period. are tested for indications of impairment at the end of each reporting period. assigned by the method most appropriate to each particular class of inventory, with • Receivables the majority being valued on a first in first out basis. • Amounts receivable for services When assessing expected future payments consideration is given to expected future wage and salary levels including non-salary components such as employer Inventories not held for resale are valued at cost unless they are no longer required, in (J) NON-CURRENT ASSETS (OR DISPOSAL GROUPS) CLASSIFIED AS HELD • Financial liabilities superannuation contributions. In addition, the long service leave liability also which case they are valued at net realisable value. FOR SALE • Payables considers the experience of employee departures and periods of service. Non-current assets (or disposal groups) held for sale are recognised at the lower of (Q) RECEIVABLES carrying amount and fair value less costs to sell and are presented separately from The expected future payments are discounted using market yields at the end of the Initial recognition and measurement of financial instruments is at fair value which Receivables are recognised and carried at original invoice amount less an allowance other assets in the Statement of Financial Position. Assets classified as held for sale reporting period on national government bonds with terms to maturity that match, as normally equates to the transaction cost or the face value. Subsequent measurement for any uncollectible amounts (i.e. impairment). The collectability of receivables is are not depreciated or amortised. closely as possible, the estimated future cash outflows. is at amortised cost using the effective interest method. reviewed on an ongoing basis and any receivables identified as uncollectible are

written off against the allowance account. The allowance for uncollectible amounts All land holdings are Crown land vested in the Department by the Government. The All annual leave and unconditional long service leave provisions are classified as The fair value of short-term receivables and payables is the transaction cost or the (doubtful debts) is raised when there is objective evidence that the Department will Department of Regional Development and Landis the only agency with the power to current liabilities as the Department does not have an unconditional right to defer face value because there is no interest rate applicable and subsequent measurement not be able to collect the debts. The carrying amount is equivalent to fair value as it is sell Crown land. The Department transfers Crown land and any attaching buildings to settlement of the liability for at least 12 months after the reporting period. DPI when the land becomes available for sale. is not required as the effect of discounting is not material. due for settlement within 30 days. (R) PAYABLES Payables are recognised at the amounts payable when the Department becomes obliged to make future payments as a result of a purchase of assets or services. The carrying amount is equivalent to fair value, as they are generally settled within 30 days.

58 59 Superannuation (V) SUPERANNUATION EXPENSE NOTE 3. JUDGEMENTS MADE BY MANAGEMENT IN APPLYING ACCOUNTING NOTE 5. DISCLOSURE OF CHANGES IN ACCOUNTING POLICY AND ESTIMATES The Government Employees Superannuation Board (GESB) in accordance with The superannuation expense in the Statement of Comprehensive Income comprises of POLICIES legislative requirements administers public sector superannuation arrangements employer contributions paid to the GSS (concurrent contributions), the WSS, and the The preparation of financial statements requires management to make judgements INITIAL APPLICATION OF AN AUSTRALIAN ACCOUNTING STANDARD in Western Australia. Employees may contribute to the Pension Scheme, a GESBS. The employer contribution paid to the GESB in respect of the GSS is paid back about the application of accounting policies that have a significant effect on the The Department has applied the following Australian Accounting Standards effective defined benefit pension scheme now closed to new members or the Gold State into the Consolidated Account by the GESB. amounts recognised in the financial statements. The Department evaluates these for annual reporting periods beginning on or after 1 July 2009 that impacted on the Superannuation Scheme (GSS), a defined benefit lump sum scheme also closed to new judgements regularly. Department. members. The GSS is a defined benefit scheme for the purposes of employees and whole-of- government reporting. However, it is a defined contribution plan for departmental Operating lease commitments AASB 101 The Department has no liabilities under the Pension Scheme or the GSS. The liabilities purposes because the concurrent contributions (defined contributions) made The Department has entered into a number of leases for buildings for branch office Presentation of Financial Statements (September 2007). This Standard for the unfunded Pension Scheme and the unfunded GSS transfer benefits due to by the Department to GESB extinguishes the agency’s obligations to the related accommodation. Some of these leases relate to buildings of a temporary nature and has been revised and introduces a number of terminology changes as members who transferred from the Pension Scheme, are assumed by the Treasurer. superannuation liability. it has been determined that the lessor retains substantially all the risks and rewards well as changes to the structure of the Statement of Changes in Equity All other GSS obligations are funded by concurrent contributions made by the incidental to ownership. Accordingly, these leases have been classified as operating and the Statement of Comprehensive Income. It is now a requirement Department to the GESB. The concurrently funded part of the GSS is a defined (W) RESOURCES RECEIVED FREE OF CHARGE OR FOR NOMINAL COST leases. that owner changes in equity be presented separately from non-owner contribution scheme as these contributions extinguish all liabilities in respect of the Resources received free of charge or for nominal cost that can be reliably measured changes in equity. There is no financial impact resulting from the concurrently funded GSS obligations. are recognised as income and as assets or expenses as appropriate, at fair value. NOTE 4. KEY SOURCES OF ESTIMATION UNCERTAINTY application of this revised Standard. Where assets or services are received from another State Government agency, these The Department makes key estimates and assumptions concerning the future. These Employees commencing employment prior to 16 April 2007 who were not members are separately disclosed under Income from State Government in the Statement of estimates and assumptions are based on historical experience and various other AASB 2007-10 of either the Pension or the GSS became non-contributory members of the West State Comprehensive Income. factors that have a significant risk of causing a material adjustment to the carrying Further Amendments to Australian Accounting Standards arising from Superannuation Scheme (WSS). Employees commencing employment on or after amount of assets and liabilities within the next financial year. AASB 101. This Standard changes the term ‘general purpose financial 16 April 2007 became members of the GESB Super Scheme (GESBS). Both of these (X) JOINTLY CONTROLLED OPERATIONS report’ to ‘general purpose financial statements’, where appropriate in schemes are accumulation schemes. The Department makes concurrent contributions Interests in joint venture operations have been reported in the financial statements Long Service Leave Australian Accounting Standards and the Framework to better align to GESB on behalf of employees in compliance with the Commonwealth Government’s including the share of assets employed in the joint ventures, the share of liabilities In calculating the Department’s long service leave provision, several estimations and with IFRS terminology. There is no financial impact resulting from the Superannuation Guarantee (Administration) Act 1992. These contributions extinguish incurred in relation to the joint ventures and the share of any expenses incurred in assumptions have been made. These include expected future salary rates, salary application of this Standard. the liability for superannuation charges in respect of the WSS and GESBS. relation to the joint ventures in their respective classification categories. inflation, discount rates, employee retention rates and expected future payments. Any changes in these estimations and assumptions may impact on the carrying AASB 2008-13 The GESB makes all benefit payments in respect of the Pension Scheme and GSS, and (Y) COMPARATIVE FIGURES amount of the long service leave provision. Amendments to Australian Accounting Standards arising from AASB is recouped from the Treasurer for the employer’s share. Comparative figures are, where appropriate, reclassified to be comparable with the Interpretation 17 – Distributions of Non-cash Assets to Owners [AASB 5 figures presented in the current financial year. & AASB 110]. This Standard amends AASB 5 Non-current Assets Held Provisions – other for Sale and Discontinued Operations in respect of the classification, Employment on-costs As the Department came into operation on the 1 July 2009 there are no comparative presentation and measurement of non-current assets held for Employment on-costs, including workers’ compensation insurance, are not employee figures for the 2008/09 financial year. distribution to owners in their capacity as owners. This may impact benefits and are recognised separately as liabilities and expenses when the on the presentation and classification of Crown land held by the employment to which they relate has occurred. Employment on-costs are included as Department where the Crown land is to be sold by the Department of part of ‘Other expenses’ and are not included as part of the Department’s ‘Employee Regional Development and Lands (formerly Department for Planning and benefits expense’. The related liability is included in ‘Employment on-costs provision’. Infrastructure). The Department does not expect any financial impact when the Standard is first applied prospectively. Warranties Provision is made for the estimated liability on all products still under warranty at AASB 2009-2 the end of the reporting period. The amount of the provision is the present value Amendments to Australian Accounting Standards – Improving Disclosures of the expected future cash outflows expected to settle the warranty obligations, about Financial Instruments AASB 4, AASB 7, AASB 1023 & AASB 1038. having regard to the warranty experience over the last five years and the risks of the This Standard amends AASB 7 Financial Instruments: Disclosures and warranty obligations. will require enhanced disclosures about fair value measurements and liquidity risk with respect to financial instruments. There is no financial Restoration costs impact resulting from the application of this Standard. A provision is recognised where the Department has a legal or constructive obligation to undertake restoration work. Estimates are based on the present value of expected future cash outflows.

60 61 FUTURE IMPACT OF AUSTRALIAN ACCOUNTING STANDARDS NOT YET AASB AASB 2009-10 Amendments to Australian Accounting Standards – 1-Feb-10 NOTE 8. DEPRECIATION AND AMORTISATION EXPENSE OPERATIVE 2009-10 Classification of Rights Issues [AASB 132] NOTE 6. EMPLOYEE BENEFITS EXPENSE The Department cannot early adopt an Australian Accounting Standard unless 2010 AASB Amendments to Australian Accounting Standards [AASBs 5, 8, 108, 110, 112, 1-Jan-11 2010 specifically permitted by TI 1101 Application of Australian Accounting Standards and 2009-12 119, 133, 137, 139, 1023 & 1031 and Interpretations 2, 4, 16, 1039 & 1052] $000 Other Pronouncements. Consequently, the Department has not applied early any of $000 Amendments to Australian Accounting Standards arising from Interpretation the following Australian Accounting Standards that have been issued that may impact AASB 1-Jul-10 Wages and salaries(a) 13,468 Depreciation 2009-13 19 [AASB 1] the Department. Where applicable, the Department plans to apply these Australian Plant, equipment and furniture 59 Accounting Standards from their application date. AASB Amendments to Australian Interpretation – Prepayments of a Minimum 1-Jan-11 Superannuation – defined contribution plans(b) 1,277 Total depreciation 59 2009-14 Funding Requirement [AASB Interpretation 14] Long service leave(c) 746

Operative (c) reporting Annual Leave 1,741 periods 17,232 beginning NOTE 9. ACCOMMODATION EXPENSES on/after 2010 AASB Amendments to Australian Accounting Standards arising from AASB 9 [AASB 1-Jan-13 (a) Includes the value of the fringe benefit to the employee plus the fringe benefits tax component. $000 2009-11 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 & 1038 (b) Defined contribution plans include West State, Gold State and GESB Super Scheme (contributions paid). and Interpretations 10 & 12]. Lease rentals 1,164 (c) Includes a superannuation contribution component. The amendment to AASB 7 requires modification to the disclosure of Repairs and maintenance 712 categories of financial assets. The Authority does not expect any financial Cleaning 9 impact when the Standard is first applied. The disclosure of categories of Employment on-costs such as workers’ compensation insurance are included at note 11 financial assets in the notes will change. ‘Other expenses’. 1,885 AASB Application of Tiers of Australian Accounting Standards This Standard 1-Jul-13 1053 establishes a differential financial reporting framework consisting of two The employment on costs liability is included in note 21 ‘Provisions’. NOTE 10. GRANTS AND SUBSIDIES tiers of reporting requirements for preparing general purpose financial statements. 2010 NOTE 7. SUPPLIES AND SERVICES $000 The Standard does not have any financial impact on the Department. However it may affect disclosures in the financial statements of the 2010 Recurrent Department if the reduced disclosure requirements apply. DTF has not yet $000 Community Resource Network - Operational Support 1,965 determined the application or the potential impact of the new Standard for agencies. Communications 610 Community Resource Network Program 497 AASB Amendments to Australian Accounting Standards arising from Reduced 1-Jul-13 Consultants and contractors 13,107 Country Local Government Fund 4,024 2010-2 Disclosure Requirements Consumables 422 Crown Land - Fire Risk Management (FESA) 450 This Standard makes amendments to many Australian Accounting Travel 493 Regional Infrastructure Fund 8,161 Standards, including Interpretations, to introduce reduced disclosure requirements into these pronouncements for application by certain types of Other 1,264 Royalties for Regions - Community Resource Network 6,129 entities. 15,896 Royalties for Regions - Country Age Pension Fuel Card 14,225 The Standard is not expected to have any financial impact on the Royalties for Regions - Mobile Communication 601 Department However this Standard may reduce some note disclosures in Royalties for Regions - Ord Expansion Aboriginal Development Package 1,552 financial statements of the Department. DTF has not yet determined the application or the potential impact of the amendments to these Standards Royalties for Regions - Pilbara Revitalisation Plan Phase 2 4,962 for agencies. Other Grants and Subsidies 1 AASB Amendments to Australian Accounting Standards – Group Cash-settled Share- 1-Jan-10 2009-8 based Payment Transactions [AASB 2] 42,567 AASB Amendments to Australian Accounting Standards – Additional Exemptions for 1-Jan-10 2009-9 First-time Adopters [AASB 1]

62 63 NOTE 11. OTHER EXPENSES NOTE 14. INCOME FROM STATE GOVERNMENT NOTE 15. RESTRICTED CASH AND CASH EQUIVALENTS NOTE 17. AMOUNTS RECEIVABLE FOR SERVICES 2010 2010 2010 2010 $000 $000 $000 $000 Appropriation received during the year: Current Current 32 Doubtful debts expense 43 Service appropriation(a) 31,312 Royalties for Regions Fund(a) 18,083 Non-current 2,221 Employment On Cost(a) 180 Cash and cash equivalents 6,006 2,253 Wittenoom relocation compenation expenses 1,287 Resources received free of charge(b) 24,089 Service Delivery Agreement (Department of Planning) 2,150 Determined on the basis of the following estimates provided by Represents the non-cash component of service appropriations. It is restricted in that it can only be used for asset replacement or payment of leave liability. Other 180 agencies: Non-current Landgate 3,562 3,839 Accrued salaries suspense account(b) 219 State Solicitor’s Office 223 219 (a) Includes workers’ compensation insurance and other employment on-costs. The on-costs liability 3,785 associated with the recognition of annual and long service leave liability is included at note 21 ‘Provisions’. (a) These unspent funds are committed to projects and programs in WA regional areas. Superannuation contributions accrued as part of the provision for leave are employee benefits and are not included in employment on-costs. (b) Amount held in the suspense account is only to be used for the purpose of meeting the 27th pay in Royalties for Regions Fund: a financial year that occurs every 11 years. - Country Local Government Fund(c) 4,125 NOTE 12. USER CHARGES AND FEES - Regional Community Services Account(c) 18,130 NOTE 16. RECEIVABLES 2010 - Regional Infrastructure and Headworks Account(c) 9,317 2010 $000 (c) 4,791 $000 Regulatory fees 68 - Administration (New Statewide Initiative) Current Services rendered 373 36,363 Receivables 1,942 441 (a) Service appropriations are accrual amounts reflecting the net cost of services delivered. The Allowance for impairment of receivables (214) appropriation revenue comprises a cash component and a receivable (asset). The receivable GST receivable 2,292 NOTE 13. OTHER REVENUE (holding account) comprises the depreciation expense for the year and any agreed increase in Other debtors 23,109 2010 leave liability during the year. Total current 27,129 (b) Where assets or services have been received free of charge or for nominal cost, the Department $000 recognises revenue equivalent to the fair value of the assets and/or the fair value of those services Sales - Land - that can be reliably measured and which would have been purchased if they were not donated, Reconciliation of changes in the allowance for impairment of receivables: Sales-proceeds sale closed roads 2 and those fair values shall be recognised as assets or expenses, as applicable. Where the contributions of assets or services are in the nature of contributions by owners, the Department Balance at start of year 171 Rents and leases 2,726 makes an adjustment direct to equity. Doubtful debts expense recognised in the statement of comprehensive income 43 Ord Expansion contributions(a) 10,653 (c) This is a sub-fund within the over-arching ‘Royalties for Regions Fund’. The recurrent funds are Balance at end of year 214 Other revenue 659 committed to projects and programs in WA regional areas. 14,040 The Department does not hold any collateral as security or other credit enhancements relating to receivables. (a) Ord expansion Project contributions provided by Department of State Development from the Royalties for Regions Fund 64 65 NOTE 18. PROPERTY, PLANT AND EQUIPMENT Office Computer Other Non Equip- Hard Fixtures & - Current NOTE 19. IMPAIRMENT OF ASSETS 2010 Land Buildings ment wares Furnitures Communications Assets Total The impairment losses recognised relate to a revaluation from the Valuer General’s Office on $000 buildings held by the Department. The full amount was recognised in the income statement, 2010 $000 $000 $000 $000 $000 $000 $000 $000 Land as there was no amount included in the asset revaluation reserve relating to these assets. Carrying At fair value(a) 255,382 amount at The Department held intangible assets with an indefinite useful life during the reporting 255,382 start of year ------period. The Department recognises the acquisition of easements associated with the Dampier Buildings to Bunbury Natural Gas Pipeline as intangible assets with an indefinite useful life. At the end Additions - - 34 31 48 - 15 129 At fair value(a) 792 of the reporting period there were no intangible assets not yet available for use. Transfers(a) 83,232 907 16 15 69 5 - 84,244 792 All surplus assets at 30 June 2010 have either been classified as assets held for sale or Office equipment Revaluation written-off. At cost 108 increments/ (decrement) 172,148 ------172,148 Accumulated depreciation (58) NOTE 20. PAYABLES 50 Impairment losses(b) - (115) - - - - - (115) Computer Hardwares 2010 At cost 46 Depreciation - - - (2) (56) - - (58) $000 Accumulated depreciation (3) Carrying Current 43 amount at Trade payables 2,432 Fixtures & Furnitures end of year 255,380 792 50 44 61 5 15 256,348 Accrued expenses 7,863 At cost 249 Accumulated depreciation (188) (a) The Department of Regional Development and Land (RDL) is the only agency with the power to sell Crown land. The land is Accrued salaries 932 61 transferred to DPI for sale and the Department accounts for the transfer as a distribution to owner (DTO). Expenses incurred by the Department of Local Government 1,245 Communications (b) Recognised in the Statement of Comprehensive Income. Where an asset measured at cost is written-down to recoverable amount, Total current 12,472 At cost 44 an impairment loss is recognised in the Statement of Comprehensive Income. Where an asset measured at fair value is written- Accumulated depreciation (39) down to recoverable amount, the loss is accounted for as a revaluation decrement. 5 Other Non - Current Assets At cost 15 15

256,348

(a) Land and buildings were revalued as at 1 July 2009 by the Western Australian Land Information Department (Valuation Services). The valuations were performed during the year ended 30 June 2010 and recognised at 30 June 2010. In undertaking the revaluation, fair value was determined by reference to market values for land: $255,381,150 and buildings: $792,200. For the remaining balance, fair value of land and buildings was determined on the basis of depreciated replacement cost.

66 67 (a) Annual leave liabilities have been classified as current as there is no unconditional right to defer NOTE 23. EQUITY NOTE 21. PROVISIONS settlement for at least 12 months after the reporting period. Assessments indicate that actual NOTE 22. OTHER LIABILITIES 2010 settlement of the liabilities will occur as follows: 2010 Equity represents the residual interest in the net assets of the Department. The Government holds the equity interest in the Department on behalf of the community. The asset $000 Within 12 months of the end of the reporting period 1,523 $000 revaluation surplus represents that portion of equity resulting from the revaluation of non- Current More than 12 months after the reporting period - Current current assets. Employee benefits provision 1,523 Other - unearned revenue 66 Contributed equity 2010 Annual leave(a) 1,523 Total current 66 (b) Long service leave liabilities have been classified as current where there is no unconditional right $000 Long service leave(b) 1,924 to defer settlement for at least 12 months after the reporting period. Assessments indicate that Balance at start of period - 3,447 actual settlement of the liabilities will occur as follows: Non-current Contributions by owners Other provisions Within 12 months of the end of the reporting period 1,924 Other employment on-cost provisions 4 Total non-current 4 Capital appropriation 105 Employment on-costs(c) 335 More than 12 months after the reporting period 583 3,782 2,507 Transfer of net assets from other agencies Non current Contribution from other agencies 116,583 Employee benefits provision (c) The settlement of annual and long service leave liabilities gives rise to the payment of employment on-costs including workers’ compensation insurance. The provision is the present value of Total contributions by owners 116,688 Long service leave(b) 583 expected future payments. The associated expense, apart from the unwinding of the discount Deferred salary scheme 11 (finance cost), is disclosed in note 11 ‘Other expenses’. Balance at end of period 116,688 594 Movements in other provisions Other provisions Reserves 2010 Movements in each class of provisions during the financial year, other than employee Employment on-costs(c) 41 benefits, are set out below: $000 635 Asset revaluation surplus 4,417 Employment on-cost provision Balance at start of year - Carrying amount at start of year - Net revaluation increments/(decrements) 172,148 Additional provisions recognised (d) 376 Balance at end of year 172,148 Carrying amount at end of year 376 Accumulated surplus/(deficit) 2010

(d) Additional provisions recognised include amounts transferred from other State Government $000 agencies. Balance at start of year - Result for the period 4,348 Balance at end of year 4,348

68 69 Reconciliation of net cost of services to net cash flows provided by/(used in) operating Other expenditure commitments NOTE 24. NOTES TO THE STATEMENT OF CASH FLOWS activities NOTE 25. COMMITMENTS 2010 2010 $000 Reconciliation of cash Lease commitments $000 Other expenditure commitments contracted for at the end of the reporting Cash at the end of the financial year as shown in the Statement of Cash Flows is reconciled to Net cost of services (67,112) 2010 period but not recognised as liabilities, are payable as follows: the related items in the Statement of Financial Position as follows: $000 Within 1 year 3,098 2010 Non-cash items: Commitments in relation to leases contracted for at the end of the reporting Later than 1 year and not later than 5 years 2,362 $000 period but not recognised in the financial statements are payable as follows: Depreciation and amortisation expense (note 8) 59 Later than 5 years - Cash and cash equivalents 104 Doubtful debts expense (note 11) 43 Within 1 year 1,244 5,460 Restricted cash and cash equivalents 24,308 Resources received free of charge (note 14) 3,785 Later than 1 year and not later than 5 years 341 [refer to note 15 ‘Restricted cash and cash equivalents’] Adjustment for other non-cash items (1,219) Later than 5 years - These commitments are all inclusive of GST. 24,412 1,585

(Increase)/decrease in assets: Representing: Current receivables(c) (1,552) Cancellable operating leases 408 Current other debtors 153 Non-cancellable operating leases 1,177 1,585 Increase/(decrease) in liabilities: Current payables(c) 10,106 Non cancellable operating lease commitments Current provisions 1,503 2010 Other current liabilities 1,847 $000 Non-current provisions (369) Commitments for minimum lease payments are payable as follows: Other non-current liabilities 4 Within 1 year 1,039 Net GST receipts/(payments)(a) - external party (1,442) Later than 1 year and not later than 5 years 138 Change in GST in receivables/payables(b) - financing, inversting - Later than 5 years - Net cash provided by/(used in) operating activities (54,195) 1,177

(a) This is the net GST paid/received, ie. cash transactions. The property lease is a non-cancellable lease with a five year term, with rent payable monthly (b) This reverses out the GST in receivables and payables. in advance. Contingent rent provisions within the lease agreement require that the minimum (c) Note that the Australian Taxation Office (ATO) receivable/payable in respect of GST and the lease payments shall be increased by the lower of CPI or 4% per annum. An option exists to receivable/payable in respect of the sale/purchase of non-current assets are not included in these renew the lease at the end of the five year term for an additional term of five years. items as they do not form part of the reconciling items.

At the end of the reporting period, the Department had fully drawn on all financing facilities, details of which are disclosed in the financial statements.

70 71 NOTE 26. CONTINGENT LIABILITIES AND CONTINGENT ASSETS NOTE 28. EXPLANATORY STATEMENT Total Income Contingent liabilities Significant variations between estimates and actual results for income and expense as Total income other than income from State In addition to the liabilities included in the financial statements, there are the following presented in the financial statement titled ‘Summary of Consolidated Account Appropriations Government 4,391 14,481 (10,090) contingent liabilities: and Income Estimates’ are shown below: Significant variations are considered to be those greater than 10% or $250,000. Significant variances between estimate and actual for 2010 Litigation in progress 2010 2010 The Department has pending litigation that may affect the financial position. One action for The variance is predominantly due to a redirection of Royalties for Regions Funds from the compensation against the Department. The potential maximum financial effect is $614,208. Estimate Actual Variance Department of State Development for costs incurred by the Department for the Ord Expansion $000 $000 $000 Project ($10.7 million). Contaminated sites Appropriations Under the Contaminated Sites Act 2003, the Department is required to report known and suspected contaminated sites to the Department of Environment and Conservation (DEC). In Total appropriations provided to deliver services 31,970 31,312 658 Significant variations between estimates and actual results for income and expense as accordance with the Act, DEC classifies these sites on the basis of the risk to human health, presented in the financial statement titled ‘Summary of Consolidated Account Appropriations the environment and environmental values. Where sites are classified as contaminated - and Income Estimates’ are shown below: Significant variations are considered to be those remediation required or possibly contaminated - investigation required, the Department may Significant variances between estimate and actual for 2010 greater than 10% or $250,000. have a liability in respect of investigation or remediation expenses. The variance is predominantly due to identified savings returned to Government from the 2010 2010 Regional Investment Fund ($1.1 million) offset by a one-off payment for land to the Mugujuga Estimate Actual Variance Department of Environment and Conservation (DEC) has approved a program under section 12 Aboriginal Corporation ($459,000). of the Contaminated Sites Act 2003 for the systematic identification, inspection, reporting and $000 $000 $000 treatment of suspected contaminated sites on Crown land under direct State Land Services (SLS) Capital Expenditure management. Service expenditure Purchase of non-current physical assets 60,105 112 59,993 Significant variances between estimate and actual for 2010 Initial inspection of the approximately 10,000 suspected contaminated sites will be conducted by contractors, with SLS management determining whether the inspection reports indicate Regional Investment (a) 68,683 55,493 13,190 that a site merits further investigation and reporting to DEC. Subsequent detailed examination Significant variances between estimate and actual for 2010 State Land Administration (b) 22,373 24,776 (2,403) and reporting to DEC will be conducted by duly qualified environmental consultants and The variance is due to a deferral of $60 million of infrastructure works associated with the contaminated sites auditors, contracted by SLS. Regional Policy (c) 875 1,321 (446) Pilbara Revitilisation Plan. 123,901 112,901 11,000 The extent of the Department’s liability will only be able to be assessed as DEC progressively classifies sites under a program, which is expected to continue for many years. Total administered transactions

(a) Regional Investment - The variance is predominantly due to lower than expected grant payments NOTE 27. EVENTS OCCURRING AFTER THE END OF THE REPORTING PERIOD for projects funded from the Regional Investment Fund and the deferral of the Bushchange Housing Administered Income 14,939 57,365 (42,426) At the time of reporting, management are not aware of any events that have occurred that Grant ($10 million). These decreases were offset by the Department taking on the Country Local would significantly impact the financial statements. Government Fund $4.75 million. Significant variance between estimate and actual for 2010 (b) State Land Administration - The variance is due to a higher than expected Corporate Service cost allocation and Resources Provided Free of Charge expenses incurred by other agencies for services The variance is due to higher than expected land sales. During the year an adjustment for provided free of charge to the Department. the increased sales was recognised in the estimated actual result as forecast in the 2010/11 Budget Papers. (c) Regional Policy - The variance is due to a higher than expected Corporate Service cost allocation and Resources Provided Free of Charge expenses incurred by other agencies for services provided free of charge to the Department.

72 73 NOTE 29. FINANCIAL INSTRUMENTS Liquidity risk Liquidity risk arises when the Department is unable to meet its financial obligations as they fall due. (C) FINANCIAL INSTRUMENT DISCLOSURES Liquidity risk (A) FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES The following table details the contractual maturity analysis for financial liabilities. The Financial instruments held by the Department are cash and cash equivalents, restricted cash The Department is exposed to liquidity risk through its trading in the normal course of business. Credit risk and interest rate exposures contractual maturity amounts are representative of the undiscounted amounts at the end of the and cash equivalents, borrowings, finance leases, Treasurer’s advances, loans and receivables, The following table discloses the Department’s maximum exposure to credit risk, interest rate reporting period. The table includes interest and principal cash flows. An adjustment has been and payables. The Department has limited exposure to financial risks. The Department’s overall The Department has appropriate procedures to manage cash flows including drawdowns of exposures and the ageing analysis of financial assets. The Department’s maximum exposure to made where material. risk management program focuses on managing the risks identified below: appropriations by monitoring forecast cash flows to ensure that sufficient funds are available to credit risk at the end of the reporting period is the carrying amount of financial assets as shown meet its commitments. below. The table discloses the ageing of financial assets that are past due but not impaired and Credit risk impaired financial assets. The table is based on information provided to senior management of Credit risk arises when there is the possibility of the Department’s receivables defaulting on their Market risk the Department. Interest rate contractual obligations resulting in financial loss to the Department. Market risk is the risk that changes in market prices such as foreign exchange rates and interest exposure rates will affect the Department’s income or the value of its holdings of financial instruments. The The Department does not hold any collateral as security or other credit enhancement relating to Weighted The maximum exposure to credit risk at end of the reporting period in relation to each class Department does not trade in foreign currency and is not materially exposed to other price risks [for the financial assets it holds. Average of recognised financial assets is the gross carrying amount of those assets inclusive of any example, equity securities or commodity prices changes]. The Department’s exposure to market risk Effective Carrying Non-interest provisions for impairment as shown in the table at note 29(c) ‘Financial instruments disclosures’ for changes in interest rates relate primarily to the long-term debt obligations. The Department does not hold any financial assets that had to have their terms renegotiated Interest Rate Amount bearing and note 16 ‘Receivables’. that would have otherwise resulted in them being past due or impaired. The Department’s borrowings are all obtained through the Western Australian Treasury Corporation % $000 $000 Credit risk associated with the Department’s financial assets is minimal because the main (WATC) and are at fixed rates with varying maturities. The risk is managed by WATC through Interest rate exposures and ageing analysis of financial assets(a) Financial Liabilities receivable is the amounts receivable for services (holding account). For receivables other than portfolio diversification and variation in maturity dates. Other than as detailed in the Interest rate 2010 government, the Department trades only with recognised, creditworthy third parties. The sensitivity analysis table at note 29(c), the Department is not exposed to interest rate risk because Interest Department has policies in place to ensure that sales of products and services are made to apart from minor amounts of restricted cash, all other cash and cash equivalents and restricted Payables - 12,472 12,472 rate customers with an appropriate credit history. In addition, receivable balances are monitored on cash are non-interest bearing and have no borrowings other than the Treasurer’s advance (non- exposure Past due but not impaired - 12,472 12,472 an ongoing basis with the result that the Department’s exposure to bad debts is minimal. At the interest bearing), WATC borrowings and finance leases (fixed interest rate). end of the reporting period there were no significant concentrations of credit risk. Weighted (B) CATEGORIES OF FINANCIAL INSTRUMENTS Average Allowance for impairment of financial assets is calculated based on objective evidence such as In addition to cash and bank overdraft, the carrying amounts of each of the following categories Effective Non- More Interest rate sensitivity analysis observable data in client credit ratings. For financial assets that are either past due or impaired, of financial assets and financial liabilities at the end of the reporting period are as follows: Interest Carrying interest Up to 3 3-12 1-2 2-5 than 5 The Department is not required to conduct an analysis as it has no interest bearing assets or liabilities. refer to note 29(c) ‘Financial instrument disclosures’. 2010 Rate Amount bearing months months years years years $’000 % $000 $000 $000 $000 $000 $000 $000 Fair values All financial assets and liabilities recognised in the statement of financial position, whether Financial Assets Financial Assets they are carried at cost or fair value, are recognised at amounts that represent a reasonable Cash and cash equivalents 104 approximation of fair value unless otherwise stated in the applicable notes. 2010 Restricted cash and cash Cash and cash equivalents 24,089 equivalents - 104 104 (a) Loans and receivables 27,090 Restricted 51,283 cash and cash equivalents - 24,089 24,089 (a) Financial Liabilities Receivables - 24,837 24,837 145 675 67 47 3 Amounts Financial liabilities receivable for measured at amortised cost 12,472 services 2,253 2,253 (a) The amount of loans and receivables excludes GST recoverable - 51,283 51,283 145 675 67 47 3 from the ATO (statutory receivable). (a) The amount of receivables excludes the GST recoverable from the ATO (statutory receivable).

74 75 Special Purpose Account - section 16(1)(d) of FMA 2010 NOTE 30. REMUNERATION OF SENIOR OFFICERS NOTE 31. REMUNERATION OF AUDITOR NOTE 33. SPECIAL PURPOSE ACCOUNTS The following Statements of Receipts and Payments are provided in accordance with $’000 The number of senior officers whose total fees, salaries, superannuation, non-monetary Remuneration payable to the Auditor General in respect of the audit for the current financial Treasurer’s Instruction 1101A Financial Reporting by Departments. Deposits Land Applications benefits and other benefits for the financial year fall within the following bands are: year is as follows: This Account holds fees, rentals, deposits, premiums or performance bonds received from 2010 2010 Special Purpose Account - section 16(1)(b) of FMA applicants pending the issue of licences or leases, or the sale of Crown land or in relation to $000 improvements to Crown land in accordance with provisions of the Land Administration Act $ $000 2010 1997. 30,001 - 40,000 1 Auditing the accounts, financial statements and performance indicators 66 $’000 50,001 - 60,000 1 Dampier to Bunbury Natural Gas Pipeline Account Balance at the start of the year 13,218 This Account holds funds received pursuant to section 45(2) of the Dampier to Bunbury 60,001 - 70,000 1 NOTE 32. RELATED BODIES Pipeline Act 1997 for application in accordance with section 45(5) of that Act. Receipts: 80,001 - 90,000 1 Deposits 55,442 The Department had no related bodies during the financial year . 90,001 - 100,000 1 Balance at the start of the year 26,142 Payments: 100,001 - 110,000 1 Receipts: Refunds - 130,001 - 140,000 1 Fees 87 140,001 - 150,000 1 Closing balance 68,660 160,001 - 170,000 1 Payments: War Service Land Settlement Administration (1,169) This Account holds funds pending transfer to the Commonwealth Department of Primary Easement rights (952) Industry. Total remuneration of senior officers 898 (2,121) The total remuneration includes the superannuation expense incurred by the Department in Balance at the start of the year 4 respect of senior officers. Closing balance 24,108 Receipts: Deposits 556

Payments: Remittances to the Commonwealth

Closing balance 560

Wittenoom Relocation Trust Account The purpose of this account is to hold funds for the purpose of purchasing property in the Wittenoom town site, relocating residents, demolition and disposal of acquired property.

Balance at the start of the year 2,392

Receipts 1,558

Payments (79)

Closing balance 3,871

76 77 2010 NOTE 35. DISCLOSURE OF ADMINISTERED INCOME AND EXPENSES BY SERVICE 36. ADMINISTERED ASSETS AND LIABILITIES The following represents the Minister’s interests in the joint venture NOTE 34. SUPPLEMENTARY FINANCIAL INFORMATION operation: $000 2010 (A) WRITE-OFFS Expenses General $000 During the financial year, the following amount was written off the State Land – Not Estate expenses 1 Current Assets Department’s asset register under the authority of: Administration Attributed Total Operating expenses 7 Cash and cash equivalents 97,062 2010 2010 2010 Share of joint venture expenses 8 Receivables 5,966 $000 $000 $000 Share of joint venture current assets (i) 886 2010 Revenues COST OF SERVICES Total Administered Current Assets 103,914 $000 Interest 1 Expenses Share of joint venture revenues 1 The accountable authority 4 Non-Current Assets Employee benefits expense 699 - 699 4 Buildings Supplies and services 670 - 670 Current assets Land, at fair value (ii) 4,638,781 Cash 26 Accommodation expenses 31 - 31 Easements, at fair value (ii) 13,550 Work in progress 855 Grants and subsidies 400 - 400 Share of joint venture non current assets (i) 622 Other current assets 5 Total Administered Non-Current Assets 4,652,953 Cost of sales - 23,307 23,307 Share of joint venture current assets 886 Cost of assets transferred - 80,648 80,648 Total Administered Assets 4,756,866 Transfer payments - 52,382 52,382 Non current assets Undeveloped land 622 Other expenses 563 - 563 Current Liabilities Share of joint venture non current assets 622 Share of joint venture expenses (refer to note 36 (i)) 8 - 8 Payables 4,724 Provision 45 Total share of joint venture assets 1,508 Total administered expenses 2,371 156,336 158,708 Refundable deposits 65,860 Funds held in trust 558 Current liabilities Share of joint venture current liabilities (i) 33 Accrued expenses 33 Income Total Administered Current Liabilities 71,220 Share of joint venture current liabilities 33 For transfer: Non-Current Liabilities Regulatory fees and other charges 737 - 737 (ii) Notes to the Schedules of Administered Items – Land values Assets not previously recognised - 6,026 6,026 Provision 119 Land is measured at fair value based on independent valuations provided by the Western Australian Land Total Administered Non-Current Liabilities 119 Information Authority (Valuation Services). The valuations were performed during the year ended 30 June Land sales - 39,420 39,420 2010 and recognised at 30 June 2010. Lease rental - 11,181 11,181 Total Administered Liabilities 71,339 Fair value has been determined on the basis of current market value where an active market exists or Share of joint venture revenues (refer to note 36 (i)) 1 - 1 current use where no market exists and/or the current land use is specialised in nature. Revaluations are (i) Notes to the Schedules of Administered Items – Joint venture made with sufficient regularity to ensure that the carrying value of land does not differ materially from its The Minister has a 22% interest in a joint venture with LandCorp and the City of Bunbury to develop, fair value at reporting date. Total administered income 738 56,627 57,365 subdivide and sell land in Bunbury. Valuation Services, the Office of the Auditor General and the Department of Treasury and Finance assessed the valuations globally to ensure that the valuations provided (as at 1 July 2009) were compliant with fair value at 30 June 2010.

Contingent liabilities There were no contingent liabilities in relation to the Administered assets and liabilities schedule as at 30 June 2010.

78 79 DEPARTMENT LEVEL GOVERNMENT DESIRED OUTCOMES AND KEY Key performance indicators PERFORMANCE INDICATORS The Department of Regional Development and Lands (RDL) was formed on 1 July CERTIFICATION OF KEY PERFORMANCE INDICATORS 2009, combining the State Land Services and Pastoral Land Services from the former FOR THE YEAR ENDED 30 JUNE 2010 Department for Planning and Infrastructure (DPI) and Regional Development and Major I hereby certify that the key performance indicators are based on proper records, are Regional Projects from the former Department of Local Government and Regional relevant and appropriate for assisting users to assess the Department of Regional Development (DLGRD), to bring a new focus to regional Western Australia. Development and Lands’ performance, and fairly represent the performance of the Department of Regional Development and Lands for the financial year ended 30 June 2010. The table below illustrates the relationship between the desired outcomes of the Department of Regional Development and Lands (RDL) and the Government goal.

Department Desired Government Goals Department Services Outcomes

Increased capacity of 1. Regional Investment. Greater focus on service regional communities to delivery, infrastructure develop economic growth 2. Regional Policy. investment and economic and social wellbeing. development to improve Paul Rosair, the overall quality of life State lands are 3. State Land Director General in remote and regional administered to meet the Administration. Department of Regional Development and Lands areas. State’s economic, social Date: 14 September 2010 and cultural objectives.

80 81 DEPARTMENT LEVEL GOVERNMENT DESIRED OUTCOME: SERVICE 2: REGIONAL POLICY Reasons for EFFICIENCY KEY PERFORMANCE INDICATORS INCREASED CAPACITY OF REGIONAL COMMUNITIES TO DEVELOP ECONOMIC Key Effectiveness 2009-10 Target 2009-10 Actual Significant This service focuses on delivering effective government policy to support regional GROWTH AND SOCIAL WELLBEING. Indicators Variance SERVICE 1: REGIONAL INVESTMENT development and service delivery, including modernising legislation. It ensures This service recognises State Government investment in the development of regional that the department’s work is proactively supporting Aboriginal development and EFFECTIVENESS INDICATOR: CLIENT SATISFACTION WITH REGIONAL A conservative Western Australia. This investment increases the capacity of regional communities engagement through the department’s programs and behaviour. DEVELOPMENT SERVICES. target was set for to develop both economic growth and social well being promotes increased RDL coordinates major initiatives and projects. These initiatives and projects are the first formative sustainability and a sense of community, resulting in a remote and regional Western Regional policy business works across government and other sectors to enhance of significant benefit to regional Western Australia, some of which require years of Client satisfaction year for the new Australia where people can choose to stay and live rather than being forced to planning and service delivery. Regional policy business addresses the challenges and planning and negotiation. Some of the department’s key projects include the Ord- with regional department metropolitan areas to access quality services and infrastructure. opportunities of living, working and doing business in the regions. 75% 86% East Kimberley Expansion project, the Exploration Incentive Scheme, the Community development allowing for Resource Network and financial supplementation to the Royal Flying Doctor Service. services perceived Key to this increased capacity is local decision-making against a backdrop of a variety Average cost is calculated by the internal costs incurred in the Regional Policy branch or actual of departmental services aimed to encourage effective, efficient, sustainable and divided by the tracked number of written advice requiring Minister’s attention. The “Royalties for Regions” projects are being implemented across the State inconveniences to responsible local decision making and community growth. with the focus on building communities and providing people in regional areas the client. Reasons for new opportunities to help shape their future and plan for long term sustainable The department provides a host of regional investment services, including: Key Efficiency 2009-10 Target 2009-10 Actual Significant development. Funds are committed to support projects and services that are driven • Advice and support to Royalties for Regions clients; Indicators by regional communities themselves. Variance 163 client surveys were achieved from the client group population to give a maximum • Advice and support to the Regional Development Commissions, including the standard error ratio of +/-2.9% at the 95% confidence level. Regional Grants Scheme and secretariat support; The department Clients were selected from a cross section of agency contacts represented by • Westlink Services; dealt with a much government departments, local government bodies, businesses, non-government • Community Development, including Community Resource Centres advice and larger volume organisations and regional community groups. The surveys address the level of support; and Average cost per of requests for satisfaction with the department’s investment in a range of community services in • Ministerial advice and support. item of written information the regions and in both local infrastructure requirement by local governments and advice requiring $340 $268 than previously large-scale infrastructure identified as of strategic importance to the regional Western Minister’s anticipated, which Australia. attention resulted in the Key Efficiency 2009-10 2009-10 Reasons for Significant lower actual result Indicators Target Actual Variance compared to target. The original target did not include the cost of the Major Regional Projects branch ($4.791 million). The Average cost per decision to fund and create funded initiative $4,174 $7,591 this division to administer administered Royalties for regions was made by cabinet during the 2009/10 financial year after the budget was released.

The department operated with limited corporate Average internal resources in 2009/10 cost per satellite $3,782 $3,193 resulting in a lower site supported corporate service cost allocation.

82 83 DEPARTMENT LEVEL GOVERNMENT DESIRED OUTCOME: Reasons for EFFICIENCY KEY PERFORMANCE INDICATORS STATE LANDS ARE ADMINISTERED TO MEET THE STATE’S ECONOMIC, Key Effectiveness 2009-10 Target 2009-10 Actual Significant SOCIAL AND CULTURAL OBJECTIVES. Indicators Variance SERVICE 3: STATE LAND ADMINISTRATION State land administers and manages Crown land to support the needs of the EFFECTIVENESS INDICATOR: PERCENTAGE OF CUSTOMERS SATISFIED A conservative community of Western Australia and to deliver primary land tenure for strategic Percentage THAT THE MANAGEMENT AND USE OF CROWN LAND IS SUPPORTING THE target was set for infrastructure projects. of customers STATE’S ECONOMIC, SOCIAL AND CULTURAL OBJECTIVES. the first formative satisfied that the The Lands division administers and manages the Crown estate (State land) to support year for the new The department works in close partnership with private and public entities to ensure management and the needs of the community of Western Australia and to deliver primary land tenure department that land needs are met in a sustainable and responsible manner. In doing so the use of Crown land 70% 82.3% for strategic infrastructure projects. The extent to which customers are satisfied that allowing for Department works proactively with a wide range of lands stakeholders, including is supporting the their needs are supported by the Lands division is an indicator of the department’s perceived Aboriginal people and pastoralists, to ensure that the many and varied interests State’s economic, effectiveness. or actual of Western Australians are recognised and understood. With this wide client base, social and cultural inconveniences to gathering feedback to ensure continual improvement is imperative. objectives The primary users of Lands division services are other State government agencies the customer. and local governments. A customer survey conducted by independent consultants The cost per Crown land action is calculated by dividing the total recurrent budget asked these customers to rate their satisfaction with Lands division services. A total of 130 completed surveys were obtained by telephone from this client contact allocated to State land by the number of Crown land actions. Local government customers responded in relation to their local communities and list (a response rate of 66%), giving a maximum standard error ratio of +/-5% at the Government agencies responded in terms of their agency’s perspective of the State’s 95% confidence level. A Crown land action occurs when any type of registrable document created via the needs. Document Processing System is lodged at LandGate by State land’s staff. Crown land actions also include issued surveys, and the number of tenure searches, inspections 130 recipients or beneficiaries of Lands’ services, including private enterprise, a and rent re-appraisements which are all tracked and reported on a monthly basis. sample of CEOs and Senior Officers in local government agencies, and selected government agencies were asked a variety of questions over the telephone in order Reasons for to obtain detailed feedback and data. Customers were asked to what extent they felt Key Efficiency 2009-10 2009-10 Significant their needs were being met on a scale of 0 (not met at all) to 10 (entirely met). As well Indicators Target Actual they were asked to rate the level of customer services; the timeliness and effectiveness Variance of the department’s role in processing their matter; and the advice received on the Cost per Crown progress of their matter. $3,442 $3,427 land action These customers represent various stakeholders with a variety of economic, social and cultural interests and objectives.

84 85 ACTUAL RESULTS VERSUS BUDGET TARGETS (1) As specified in the budget statements for the year in question. SUMMARY OF KEY PERFORMANCE INDICATORS

FINANCIAL TARGETS (2) Further explanations are also contained in Note 28 ‘Explanatory Statement’ to the financial statements. Government Goal: Greater focus on service 2009-10 2009-10 Variation delivery, infrastructure investment and Target Actual 2009-10 2009-10 Variation(2) economic development to improve the overall (1) (a) The variance is predominantly due to lower than expected grant payments Target Actual for projects funded from the Regional Investment Fund and the deferral of the quality of life in remote and regional areas. $’000 $’000 $’000 Bushchange Housing Grant ($10 million). These decreases were offset by the Department taking on the Country Local Government Fund $4.75 million. Outcome one: Capacity of regional Total cost of services (expense limit) communities to develop economic growth and (sourced from Statement of (b) In addition to the explanation above regarding expenses, the variation was social well-being is increased. Comprehensive Income) 91,931 81,590 10,341 (a) mainly due to a redirection of Royalties for Regions Funds from the Department 75% 86% 11% of State Development for costs incurred by the Department for the Ord Key effectiveness indicator: Client satisfaction Net cost of services Expansion Project ($10.7 million). with regional development services. (sourced from Statement of Comprehensive Income) 87,540 67,109 20,431 (b) (c) The variation is mainly due to a greater than expected asset revaluation increments for land and buildings ($172 million) and higher than expected cash Service one: Regional investment Total equity reserves ($24 million). These increases in equity were offset by the deferral of (sourced from Statement of Pilbara Revitalisation infrstructure works to be funded from the Royalties for Key efficiency indicators: Financial Position) 158,739 293,184 134,445 (c) Regions Fund ($60 million). 1) Average cost per funded initiative $4,174 7,591 (3417) administered. Net increase / (decrease) in cash held (d) The variation is mainly due to higher than expected unspent restricted cash $3,782 $3,193 589 (sourced from Statement of Cash Flows) (10,155) 13,190 (23,345) (d) reserves for Royalties for Regions funded projects ($18 million), Guildford 2) Average internal cost per satellite site supported. Approved full time equivalent (FTE) Grammar Risk Mitigation (Gas Pipeline - $2 million) and Wittenoom Relocation staff level 233 222 11 Funds ($3.8 million). Service two: Regional policy

Key efficiency indicator: Average cost per item of written advice requiring Minister’s $340 $268 72 attention.

Outcome two: State lands are administered to meet the State’s economic, social and cultural objectives.

Key effectiveness indicator: Percentage of customers satisfied that the management and 70% 82.3% 12.3% use of Crown land is supporting the State’s economic, social and cultural objectives.

Service three: State land administration

Key efficiency indicator: Cost per Crown land $3,442 $3,427 15 action.

86 87

Contact details WEST PERTH: KUNUNURRA (LANDS) Level 10 Dumas House Cnr Messmate and Bandicoot Drive 2 Havelock St PO Box 630 WEST PERTH 6005 KUNUNURRA WA 6743

Postal Address: Telephone: (08) 9168 0601 PO Box 1143 Facsimile: (08) 9168 2687 WEST PERTH WA 6872 THE PASTORAL LANDS BOARD OF WESTERN AUSTRALIA Telephone: (08) 9217 1400 Chairperson Facsimile: (08) 9226 4050 2nd Floor, Landgate Building Free call: 1800 620 511 (Country Only) 1 Midland Square Email: [email protected] MIDLAND WA 6056 Western Australia Web: www.rdl.wa.gov.au Royalties for Regions: www.RoyaltiesforRegions.wa.gov.au Postal Address: PO Box 1575 KUNUNURRA: MIDLAND WA 6936 Corner Messmate Way and Bandicoot Drive KUNUNURRA WA 6743 Telephone: (08) 9347 5126 Facsimile: (08) 9347 5009 Postal Address: Email: [email protected] PO Box 630 KUNUNURRA WA 6743 WESTERN AUSTRALIAN REGIONAL DEVELOPMENT TRUST Chairperson Telephone: (08) 9168 0605 Department of Regional Development and Lands Facsimile: (08) 9168 2687 Level 10 Dumas House, 2 Havelock St, Email: [email protected] WEST PERTH WA 6005 Web: www.RoyaltiesforRegions.wa.gov.au/ord Postal Address: MIDLAND (LANDS): PO Box 1143, WEST PERTH 6872 1 Midland Square MIDLAND WA 6936 Telephone: (08) 9217 1639 Facsimile: (08) 9226 4050 Postal Address: Free call: 1800 620 511 (Country Only) PO Box 1575 Email: [email protected] MIDLAND WA 6936 REGIONAL DEVELOPMENT COUNCIL Telephone: (08) 9347 5000 Chairperson Facsimile: (08) 9347 5017 Department of Regional Development and Lands Email: [email protected] Level 10 Dumas House, 2 Havelock St, WEST PERTH WA 6005 BUNBURY (LANDS) Austmark Bunbury Tower Postal Address: 61 Victoria Street PO Box 1143, WEST PERTH 6872 BUNBURY WA 6230 Telephone: (08) 9217 1400 Telephone: (08) 9791 0861 Facsimile: (08) 9226 4050 Facsimile: (08) 9791 0835 Free call: 1800 620 511 (Country Only) Email: [email protected] Department of Regional Development and Lands Visit: www.rdl.wa.gov.au Email: [email protected] Telephone: 08 9217 1400 Country calls, free call: 1800 620 511 Street address: Level 10 Dumas House 2 Havelock Street West Perth WA 6005