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March 2009 Volume 1 of 2 Final Report July 2008 – March 2009 Volume 1 of 2 Department of Main Roads Letter of compliance 7 September 2009 The Honourable Craig Wallace MP Minister for Main Roads Level 13 Mineral House 41 George Street BRISBANE Qld 4000 Dear Minister I have pleasure in presenting you with the final report for the Department of Main Roads for the period 1 July 2008 to 26 March 2009 (Annual Report). I certify that this annual report complies with: • the prescribed requirements of the Financial Administration and Audit Act 1977 and the Financial Management Standard 1997, and • the detailed requirements set out in the Annual Reporting Guidelines for Queensland Government Agencies. A checklist outlining the annual reporting requirements can be accessed at www.mainroads.qld.gov.au Yours sincerely Alan Tesch Director-General Department of Main Roads i Main Roads—Connecting Queensland Final Report July 2008–March 2009 Volume 1 of 2 Letter of compliance Highlights, financial summary, opportunities and challenges HIGHLIGHTS • Delivering our record roads program for the fourth consecutive year, including completing some 200 major road projects (see page 34). • Delivery of a significant program of safety improvements that at March 2009, included 37 projects under the Safer Roads Sooner (SRS) Program valued at $31.4m ( see pages 6, 30, 52). • Implementation of projects and programs to manage the impacts of urban growth, including: • smart transport solutions—Maroochy Road Interchange, alignment of the Boggo Road Busway to the Eastern Busway, and the first stage of the Northern Busway (see pages 8, 10, 33, 34) • improving network capacity and connectivity—Gateway Upgrade Project, Ipswich Motorway Upgrade and Ipswich/Logan Interchange, and the Houghton Highway Duplication (see pages 8, 10, 34, 39) • keeping traffic moving and reducing accident response times—new Traffic Response Units (TRUs) and heavy vehicle tow trucks (see page 60). • Roll-out of the Intelligent Access Program (IAP) to manage compliance on designated High Mass Limit (HML) routes, with the IAP mandatory for HML access in Queensland after 1 July 2009 (see pages 10, 63). • $85.5m investment to repair and seal aged and cracked pavements, underpinning the preservation and maintenance of the road asset (see pages 9, 26). • Creation of the General Manager (Regional Operations) position to lead and support our 12 regions and 18 offices (see page 30). • Recognition of our proven safety commitment and record in state, national and international awards (see pages 6, 66). • Celebration of Queensland’s 150th anniversary through our Bridge Naming Program (see pages 6, 18). Main Roads—Connecting Queensland Final Report July 2008–March 2009 Highlights, financial summary, opportunities and challenges ii Table 1 – Financial summary 2007–08 2008–09* $’000 $’000 Comments Total revenue 1,667,426 1,391,109 For the year ending 26 March 2009, the department showed proportionally similar figures to the previous 12 months ending 30 June 2008. A slight increase in user charges were a direct result of services provided to other government departments for resuming property. Total expenditure 1,796,974 1,861,925 The increase in expenditure reported is a direct result of the 2007–08 infrastructure asset revaluation leading to an increase in depreciation and amortisation expense and offset by a significant decrease in land used under roads due to a change in accounting treatment arising from a new accounting standard. Operating result (129,548) (470,816) The increase in net deficit for the period ending 26 March 2009 is mainly due to a significantly higher depreciation and amortisation expense as outlined above. Capital expenditure 2,303,989 2,215,963 Expenditure for the nine months is comparable to the previous 12 months ending 30 June 2008. The expenditure reflects good progress on the delivery of major road projects, particularly in the South East corner of the state such as the Ipswich Motorway and Bruce Highway Upgrades. Total assets 57,030,384 44,029,726 The decrease in infrastructure asset values in the reporting period is a direct result of ongoing refinement to the department’s infrastructure asset valuation methodology. Total liabilities 1,688,817 1,851,040 The increase in liabilities is mainly due to amounts owing to trade creditors as a result of the department’s large infrastructure program and increases to our borrowings to fund the programmed roadworks. Equity 55,341,567 42,178,686 A reduction in equity is mainly represented by a reduction in the Asset Revaluation Reserve for the period ended 26 March 2009 as a result of the refinement of the department’s infrastructure asset valuation methodology. *These figures only reflect 9 months of the financial year due to the abolition of the Department of Main Roads on 26 March 2009. Opportunities • Developing innovative delivery • Ensuring we build on the significant methods—providing value for money gains in road safety within available • Provision of smart transport solutions (including financial and non-financial funds and through innovation and to manage the impacts of urban traffic factors) through partnerships, alliances technology solutions (see page 52) growth—including emergency systems, and contract approaches, including the integrated traffic signals, variable • Preserving new and maintaining Ipswich Motorway, Northern Busway speed technology, intelligent transport existing road infrastructure, to ensure and Western Corridor (see page 11). technology, web cameras, real-time this important community asset is web-based information, TRUs and • Planning in partnership—carrying out available for future generations heavy vehicle tow trucks (see page 52). high-priority strategic planning to meet (see pages 26, 40). whole-of-government commitments • Creation of opportunities for a • Responding to extreme climatic events to economic development and urban sustainable future—minimising and addressing the impacts of climate and regional growth, for example, the our environmental footprint and change on the road asset through Roads Alliance with local government improving the integration of ecological adoption of sustainability principles (see page 21). sustainability principles across all (see page 36). aspects of our business (see page 94). With the creation of the Department • Putting road capacity to best use to of Transport and Main Roads in March • Facilitation of fully controlled and achieve greater integration of the 2009 (see page 6), these opportunities managed motorways—increasing our transport system through sustainable will continue to be realised through an ability to manage vehicle numbers on transport options (busways, cycleways, integrated approach to planning and motorways at any point in time and pedestrian paths) (see page 28). managing Queensland’s transport system improving efficiency and safety • Making the most of available funding (see page 12). (see page 38). and resources to maintain delivery, • Enhancing travel demand Challenges support state and national transport management—more efficient use agendas and achieve the best outcomes • Managing the impacts of urban of existing capacity and improving for the road network (see page 22). traffic growth to improve travel time urban mobility through the Council • Implementing the national transport reliability (see pages 10, 26, 38). of Australian Governments (COAG) policy reform agenda (see pages 6, 27). • Meeting the needs and expectations Road Reform Plan, and research and Attracting and retaining a capable, skilled Queenslanders have of roads as part policy development being undertaken and adaptable workforce with a strong of the broader transport system, for the ATC Ministers’ programs safety focus is essential to address these through best practice community and (see pages 8, 9). challenges (see page 64). stakeholder engagement (see page 16). iii Main Roads—Connecting Queensland Final Report July 2008–March 2009 Highlights, financial summary, opportunities and challenges Contents Letter of compliance i Presenting the report to the Minister This annual report outlines ii Highlights, financial summary, how we continue to work toward opportunities and challenges A snapshot of our significant achievements in a challenging year and future opportunities our vision of Main Roads— Communication objective Connecting Queensland 1 Why we produce an annual report About Main Roads 2 Who we are and what we do Director-General’s report 6 Alan Tesch provides an overview of how we delivered our strategic and operational priorities Main Roads strategic plan 12 An overview of our strategic plan and how we contribute to government priorities and community outcomes COMMUNICATION OBJECTIVE Performance summary This annual report outlines how we continue to work toward 15 A snapshot of our performance for the year to 31 March 2009 achieving our vision of Main Roads—Connecting Queensland. 16 Effective relationships We use our annual report to inform our diverse range of Working with our stakeholders to deliver stakeholders about our activities. In doing this we not only better outcomes ensure that legislative reporting obligations under the State-wide system planning Financial Administration and Audit Act 1977 and the Financial 22 Planning for a sustainable road network and delivering value for money Management Standard 1997 are met, but we also strive to exceed them. Program development and delivery 28 Delivering our record roads program This annual report is an account of how well we have delivered
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