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Annual Report 2014-2015

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Annual Report 2014-2015 2014-2015 TABLE OF CONTENTS ceo AND CHAIRMAN’S REVIEW . 3 PRINCIPAL ACTIVITIES . 4 REVIEW OF OPERATIONS . 5 KEY PERFORMANCE INDICATORS . 12 ORGANISATIONAL STRUCTURE . 13. SUNWATER BOARD . 14 SUNWATER CONSULTANTS . 15 SUNWATER MANAGEMENT . 16 DIRECTORS’ REPORT . 16 AUDITOR’S INDEPENDENCE DECLARATION . 19 FINANCIAL REPORT . 20 Notes to the Financial Statements . 25 Directors’ Declaration . 58 Independent Auditor’s Report . 59 CORPORATE GOVERNANCE . 61 COMPLIANCE IN KEY AREAS . 64 Subsidiary Reporting . 66 Government Directives . 66 SCHEME STATISTICS . 67 SUNWATER DAM STATISTICS . 71 SUNWATER ANNUAL REPORT 2014-2015 2 working with irrigation customers in all SunWater’s workplace health and safety CEO anD areas to more closely scrutinise and review performance in 2014–15 was the best our future works programs and asset since adoption of the industry standard CHAIRMAN’S management strategies with the objective metrics of Total Recordable Injury of achieving significant reductions in costs, Frequency Rate (TRIFR) and Loss Time REVIEW and better aligning asset strategies to Injury Frequency Rates (LTIFR). This customer expectations. declining TRIFR rate now rests at its In 2014–15, SunWater again demonstrated lowest point in SunWater’s history and The safety of our employees, local the value it delivers to regional Queensland comes as an outcome of the continuing communities and the general public and to its shareholders. The organisation and persistent effort by all staff in the continues to be a key focus for SunWater. was required to respond to a range business to make safety a priority. These Significant improvements were achieved in of challenges in the most diligent and are pleasing results and we recognise that our efforts to ensure the safety of members professional manner, to ensure the safety improving SunWater’s safety performance of the public when visiting SunWater’s of communities and that the integrity of its starts with the individual. This is why recreational areas and the safety of infrastructure was maintained. awareness, education and empowerment communities living adjacent to and of our employees has been, and will During the year we experienced an downstream of SunWater infrastructure. continue to be, the key that supports our adjustment in the business direction However, the February flood event in high level safety performance. associated with the change in government, the Callide Valley has demonstrated the most notably with respect to the previously SunWater also continued to achieve need for SunWater to work closer with proposed divestment of the industrial positive results in improving our local disaster management groups, local pipelines business. environmental performance. After being councils and other agencies in respect of severely damaged by flood, the Paradise In the first half of the year, SunWater emergency management arrangements. Dam fishways are now fully operational worked closely with Queensland Treasury Following the February flood, the and repairs to other fishways are nearing Corporation (QTC) and a range of advisors Government directed the Inspector completion. SunWater has been active to support the due diligence phase of General Emergency Management (IGEM) in identifying how best to manage water the previous Government’s proposed to conduct a review of the flood, and borne weeds and algae, which have the asset divestment program. Whilst the the management of Callide Dam. The potential to significantly impact on the divestment did not occur, the process of IGEM review confirmed that the dam was delivery of water to irrigation customers. closely evaluating the key risks and issues operated correctly and in accordance with Research is underway to examine better associated with the business in the context the required operating procedures. ways to use copper sulphate in the of a potential transaction has reaped Nevertheless, the IGEM identified a Mareeba-Dimbulah water supply channel many benefits for the business. These number of areas where improvements can systems. benefits have been captured through an be made. Of the 13 recommendations in internal lessons learned process, and are The safety of our dams is of the highest the report, one is a sole SunWater activity now being incorporated into many of our importance to the organisation, and associated with providing downstream business as usual activities. SunWater has in place a comprehensive residents of the Callide Dam with easy monitoring, inspection, and review SunWater also provided significant to understand information regarding the program. As part of SunWater’s ongoing financial support, and committed dam’s operations, five require SunWater program of dam improvements we significant organisational effort to the to respond as part of a multi-agency completed upgrades to the embankment evaluation and due diligence process approach and the balance being the filters and drainage at Kinchant Dam near for the proposed Local Management responsibility of other agencies. SunWater Mackay and in 2015–16 SunWater will Arrangements (LMA) for the channel is working closely with those agencies commence the Eungella and Paradise distribution systems. Throughout the to ensure that all recommendations Dam improvement projects. process SunWater has emphasised the are followed through. SunWater is need to ensure that all parties adopt a long also examining the implications for its During the year, we completed the fifth term view, and that the interests of our operations at other dams throughout the revision of the portfolio assessment, customers and staff are at the forefront of State, and is liaising with local disaster incorporating new and updated information decision making. management groups in other locations in from individual dam risk assessments. The that respect. portfolio risk assessment (PRA) provides a In the interim, SunWater remains prioritised program of dam improvements, committed to providing excellent customer based on overall risk and adherence to service to our irrigation customers in the the Queensland Dam Safety Regulator’s channel system, at the best possible cost, requirements and industry standards. in close consultation with customers and Since the commencement of this program their representatives. in 2005 SunWater has completed four In 2015–16, in preparation for the next dam safety improvement projects at Fred irrigation water price review, we will be Haigh, Bjelke Petersen, Tinaroo Falls and SUNWATER ANNUAL REPORT 2014-2015 3 Kinchant dams. The updated Portfolio On behalf of the SunWater Board and Risk Assessment will be provided to the Management we would like to express our PRIncIpal Dam Safety Regulator early in the 2015–16 appreciation to all SunWater employees financial year. for their dedication and commitment to ACTIVITIES navigate through the testing times and While construction activities were more deliver on our wide-ranging responsibilities SunWater Limited (SunWater) subdued than in previous years, SunWater as a regional bulk water provider. We owns and manages bulk water, continued to progress water infrastructure would also like to acknowledge and thank projects such the Woleebee Creek to pipeline and irrigation distribution the contribution of our retiring Director, Dr Glebe Weir pipeline. The pipeline was assets throughout Queensland. Kirstin Ferguson who has served on the successfully commissioned and became Board for nearly seven years. We also provide a full range of operational in early 2015 in-line with the expectations of our customer and at a cost The combined in-depth understanding facility and water management significantly less than the agreed budget. of the interests of our customers, services to other water supply The completion of this pipeline represents communities and stakeholders will ensure asset owners. the second successful Beneficial Use that we continue to address important Scheme undertaken by SunWater and is a topics and challenges in the years ahead. SunWater’s core business includes, but is great example of how the Coal Seam Gas We look forward to delivering on our not limited to: and water sectors can work together to commitments in the coming year. n bulk water storage and distribution deliver value for irrigators. n water treatment, reticulation and Looking forward, the future opportunities to drainage develop new regional bulk water supplies n water infrastructure development (where are encouraging. The recent release of Ross Dunning it aligns with Government expectations) the white papers on Developing Northern Chairman n water facilities management Australia and Agricultural Competitiveness, Peter Boettcher n customer water account management by the Federal government, reinforces Chief Executive the strategic role that water infrastructure and billing plays in securing Queensland’s and n flood hydrology, hydraulics and Australia’s economic future. These papers flood management identify that significant development within n specialist consultancy services the agricultural, resources, industrial including design and design and urban sectors are forecast which review services will require substantial water supply infrastructure within regional Queensland. As the proponent for several prospective water supply projects, SunWater will work closely with both the State and Federal Government agencies to develop innovative delivery models that enable development of this critical infrastructure. In the 2015 financial year significant natural events and the changes to the
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