PARLIAMENT OF TASMANIA
Budget Paper No 2 Operations of Government Departments 2004-05 Volume 1
Presented by the Honourable Paul Lennon MHA, Treasurer, for the information of Honourable Members, on the occasion of the Budget, 2004-05
Printed By The Government Printer, Tasmania
Budget Documents are also available at www.treasury.tas.gov.au
Useful 2004-05 Budget and Government Web sites www.treasury.tas.gov.au Copies of all Budget Papers can be found at the Department of Treasury and Finance's web site. The Department's web site also provides information on major departmental initiatives, activities and publications. www.media.tas.gov.au This web site contains the Government's Budget related media releases. www.tas.gov.au The Tasmania On-line web site provides links to the web sites of a wide range of Tasmanian public and private sector organisations. www.service.tas.gov.au The Service Tasmania web site provides a comprehensive entry point to Government services in Tasmania. www.tasmaniatogether.tas.gov.au This web site provides detailed information on Tasmania Together, including the current status of this important initiative.
CONTENTS
VOLUME 1 Page 1 Introduction 1 2 Department of Economic Development 15 3 Department of Education 43 4 Finance-General 83 5 Department of Health and Human Services 127 6 House of Assembly 171 7 Department of Infrastructure, Energy and Resources 181 8 Department of Justice 231 Conventions and Glossary of Terms 270
i
CONTENTS
VOLUME 2 Page 9 Legislative Council 283 10 Legislature-General 295 11 Ministerial and Parliamentary Support 311 12 Office of the Governor 323 13 Department of Police and Public Safety 335 14 Department of Premier and Cabinet 369 15 Department of Primary Industries, Water and Environment 411 16 Tasmanian Audit Office 463 17 Department of Tourism, Parks, Heritage and the Arts 475 18 Department of Treasury and Finance 513 19 Other General Government Sector Entities 539 Conventions and Glossary of Terms 567
iii
INDEX
VOLUME 1 Page 1 Introduction 1
Overview 2
Current Ministerial Portfolio and Departmental Structure 4
The Structure of Departmental Chapters 5
Department Overview 5
Department Information 6
2004-05 Across Department Budget Issues 11
Other Budget and Related Papers 11
Consolidated Fund Appropriation Bill 11
Second Appropriation Bill 12
Budget Speech 12
Budget Paper No 1 Budget Overview 2004-05 12
Budget Summary 12
The Tasmanian Government Financial System 12
Other documents distributed with the Budget Papers 12
2 Department of Economic Development 15
Agency Outline 15
Strategic Focus 16
Key Strategies 16
2004-05 Major Initiatives 17
Summary Agency 2004-05 Budget Information 19
Financial Summary 19
Infrastructure Funds 20
v Detailed Output Group 2004-05 Budget Information 21
Output Group 1: Investment, Trade and Development 21
Output Group 2: Centre for Research, Industry and Strategic Planning 30
Output Group 3: Recreation Industry Development 32
Detailed Budget Statements 36
3 Department of Education 43
Agency Outline 43
Strategic Focus 44
Key Strategies 46
2004-05 Major Initiatives 48
Summary Agency 2004-05 Budget Information 51
Financial Summary 51
Infrastructure Funds 52
Detailed Output Group 2004-05 Budget Information 53
Output Group 1: Pre-Compulsory and Compulsory Education 53
Output Group 2: Post-Compulsory Education and Training 60
Output Group 3: Public Information Services 67
Capital Investment Program 72
Detailed Budget Statements 75
4 Finance-General 83
Outline 83
Summary Agency 2004-05 Budget Information 84
Financial Summary 84
Detailed Output Group 2004-05 Budget Information 86
Output Group 1: Debt Servicing and Management 86
Output Group 2: Employee Related Costs 90
Output Group 3: Government Businesses 93
Output Group 4: Miscellaneous 96
Grants and Subsidies 104
vi Capital Investment Program 110
Economic and Social Infrastructure Fund 111
Social Infrastructure Fund 115
2001-02 Infrastructure Fund 117
Detailed Budget Statements 119
5 Department of Health and Human Services 127
Agency Outline 127
Strategic Focus 128
Key Strategies 129
2004-05 Major Initiatives 130
Summary Agency 2004-05 Budget Information 132
Financial Summary 132
Infrastructure Funds 133
Detailed Output Group 2004-05 Budget Information 134
Output Group 1: Community, Population and Rural Health 134
Output Group 2: Children and Families 140
Output Group 3: Hospitals and Ambulance Service 145
Output Group 4: Housing Tasmania 151
Administered Items 156
Capital Investment Program 158
Detailed Budget Statements 162
6 House of Assembly 171
Agency Outline 171
Strategic Focus 171
Key Strategies 171
2004-05 Major Initiatives 171
Summary Agency 2004-05 Budget Information 172
Financial Summary 172
Detailed Output Group 2004-05 Budget Information 172
vii Output Group 1: House of Assembly Support Services 173
Output Group 2: Payments Administered by the House of Assembly 174
Detailed Budget Statements 175
7 Department of Infrastructure, Energy and Resources 181
Agency Outline 181
Strategic Focus 181
Key Strategies 182
2004-05 Major Initiatives 182
Summary Agency 2004-05 Budget Information 187
Financial Summary 187
Detailed Output Group 2004-05 Budget Information 188
Output Group 1: Development of Transport Policy Advice and Planning 189
Output Group 2: Land Transport Safety Programs 192
Output Group 3: Provision of Transport Services and Infrastructure 196
Output Group 4: Provision of Energy Advisory and Regulatory Services 198
Output Group 5: Workplace Standards 201
Output Group 6: Mineral Resources Management and Administration 204
Output Group 7: Support for the Minister in Infrastructure Development and Government Business Management 207
Output Group 8: Support for Racing Industry 209
Output Group 9: Transport Subsidies and Concessions 211
Administered Items 213
Capital Investment Program 218
Detailed Budget Statements 221
8 Department of Justice 231
Agency Outline 231
Strategic Focus 231
Key Strategies 231
2004-05 Major Initiatives 232
viii Financial Summary 233
Detailed Output Group 2004-05 Budget Information 234
Output Group 1: Administration of Justice 234
Output Group 2: Legal Services 238
Output Group 3: Registration Services 241
Output Group 4: Review Services 243
Output Group 5: Electoral Services 247
Output Group 6: Corrective Services 250
Output Group 7: Other Services 253
Output Group 8: Consumer Services 255
Output Group 9: Industrial Relations Services 257
Administered Items 259
Capital Investment Program 261
Detailed Budget Statements 262
Conventions and Glossary of Terms 270
Conventions 270
Glossary of Terms 270
ix INDEX
VOLUME 2 Page 9 Legislative Council 283
Agency Outline 283
Strategic Focus 283
Key Strategies 283
2004-05 Major Initiatives 284
Summary Agency 2004-05 Budget Information 285
Financial Summary 285
Detailed Output Group 2004-05 Budget Information 286
Output Group 1: Legislative Council Support Services 286
Output Group 2: Payments Administered by the Legislative Council 288
Detailed Budget Statements 289
10 Legislature-General 295
Agency Outline 295
Strategic Focus 295
Key Strategies 295
2004-05 Major Initiatives 295
Summary Agency 2004-05 Budget Information 296
Financial Summary 296
Detailed Output Group 2004-05 Budget Information 296
Output Group 1: Parliamentary Reporting Service 297
Output Group 2: Parliamentary Library Service 299
Output Group 3: Parliamentary Printing and Systems 301
Output Group 4: Joint Services 302
x Detailed Budget Statements 304
11 Ministerial and Parliamentary Support 311
Agency Outline 311
Strategic Focus 311
Key Strategies 311
Summary Agency 2004-05 Budget Information 312
Financial Summary 312
Detailed Output Group 2004-05 Budget Information 313
Output Group 1: Support for Members of Parliament 313
Detailed Budget Statements 315
12 Office of the Governor 323
Agency Outline 323
Strategic Focus 324
Key Strategies 324
2004-05 Major Initiatives 324
Summary Agency 2004-05 Budget Information 325
Financial Summary 325
Detailed Output Group 2004-05 Budget Information 326
Output Group 1: The Office of the Governor 326
Performance Information 328
Capital Investment Program 328
Detailed Budget Statements 329
13 Department of Police and Public Safety 335
Agency Outline 335
Strategic Focus 335
Key Strategies 336
2004-05 Major Initiatives 336
Summary Agency 2004-05 Budget Information 338
Financial Summary 338
xi Detailed Output Group 2004-05 Budget Information 340
Output Group 1: Policing Support to the Community 340
Output Group 2: Crime Detection and Investigation 342
Output Group 3: Traffic Law Enforcement and Road Safety 346
Output Group 4: Protection of Primary Industry and Fisheries Resources 349
Output Group 5: Emergency Management 352
Output Group 6: Support to Judicial Services 355
Output Group 7: Ministerial Support and Information Services 358
Capital Investment Program 361
Detailed Budget Statements 362
14 Department of Premier and Cabinet 369
Agency Outline 369
Strategic Focus 369
Key Strategies 370
2004-05 Major Initiatives 370
Summary Agency 2004-05 Budget Information 371
Financial Summary 371
Detailed Output Group 2004-05 Budget Information 372
Output Group 1: Support for Executive Decision Making 372
Output Group 2: Government Processes and Services 379
Output Group 3: Electronic Services for Government Agencies and the Community 382
Output Group 4: Industrial Relations and State Service Management 388
Output Group 5: Tasmania Together Progress Board 391
Output Group 6: Women Tasmania 393
Output Group 7: Development of Local Government 396
Administered Items 399
Detailed Budget Statements 402
15 Department of Primary Industries, Water and Environment 411
Agency Outline 411
xii Strategic Focus 411
Key Strategies 412
2004-05 Major Initiatives 414
Output Group Restructure 416
Summary Agency 2004-05 Budget Information 418
Financial Summary 418
Detailed Output Group 2004-05 Budget Information 420
Output Group 1: Information and Land Services 420
Output Group 2: Food, Agriculture and Fisheries 425
Output Group 3: Resource Management and Conservation 430
Output Group 4: Environment Protection and Analytical Services 435
Output Group 5: Water Resources 439
Output Group 6: Policy and Planning 445
Administered Items 448
Capital Investment Program 451
Detailed Budget Statements 452
16 Tasmanian Audit Office 463
Agency Outline 463
Strategic Focus 463
Key Strategies 464
2004-05 Major Initiatives 464
Summary Agency 2004-05 Budget Information 465
Financial Summary 465
Detailed Output Group 2004-05 Budget Information 466
Output Group 1: Public Sector Management and Accountability 466
Detailed Budget Statements 470
17 Department of Tourism, Parks, Heritage and the Arts 475
Agency Outline 475
Strategic Focus 477
xiii Key Strategies 478
2004-05 Major Initiatives 481
Economic and Social Infrastructure Fund 483
Summary Agency 2004-05 Budget Information 484
Financial Summary 484
Detailed Output Group 2004-05 Budget Information 485
Output Group 1: Tourism 485
Output Group 2: Parks and Wildlife Management 491
Output Group 3: Heritage and the Arts 494
Administered Items 501
Capital Investment Program 504
Detailed Budget Statements 505
18 Department of Treasury and Finance 513
Agency Outline 513
Strategic Focus 513
Key Strategies 514
2004-05 Major Initiatives 515
Summary Agency 2004-05 Budget Information 516
Financial Summary 516
Detailed Output Group 2004-05 Budget Information 517
Output Group 1: Financial and Resource Management Services 517
Output Group 2: Economic and Fiscal Policy Advice 521
Output Group 3: Revenue and Regulatory Management Services 525
Output Group 4: Community Assistance 529
Administered Items 531
Detailed Budget Statements 532
19 Other General Government Sector Entities 539
Introduction 539
Financial Summary 540
xiv Inland Fisheries Service 540
Marine and Safety Tasmania 544
The Nominal Insurer 549
Royal Tasmanian Botanical Gardens 552
State Fire Commission 557
TAFE Tasmania 561
Conventions and Glossary of Terms 567
Conventions 567
Glossary of Terms 567
xv
1 INTRODUCTION
Features
• Budget Paper No 2 provides detailed financial and non-financial information in support of the Consolidated Fund Appropriation Bill 2004 and the Government's initiatives outlined in the Treasurer's Budget Speech.
• Information is provided for individual departments, on an accrual basis in accordance with Australian Accounting Standards, specifically Australian Accounting Standard 29 Financial Reporting by Government Departments (AAS 29), and includes details of action being taken by each department to implement major Government initiatives such as Tasmania Together, the Industry Development Plan, the Fiscal Strategy and Local Government Partnership Agreements.
• This Chapter is intended to assist those reading Budget Paper No 2, by providing information on:
− the focus and presentation of information in Budget Paper No 2;
− the current Ministerial and departmental structure;
− the structure of departmental chapters;
− expenditure by Output and outlay categories;
− details of information provided in other Budget Papers; and
− across department budgetary issues for 2004-05.
• The compilation of comparative data between 2003-04 and 2004-05 has been undertaken to assist the reader in determining the financial impact of activities undertaken by the Government. Comparison of information contained within Budget Paper No 2 with previously published information should be undertaken within the context of the Government's Budget policies.
Chapter 1: Introduction 1 OVERVIEW
Budget Paper No 2 is a major source of financial and non-financial information on the operations of departments and other entities for the year ahead. It provides information on the major initiatives which are being implemented by the Government to achieve its broad policy objectives, including Tasmania Together, the Industry Development Plan, the Fiscal Strategy and Local Government Partnership Agreements.
In this Budget Paper, the operations of each department are detailed in a chapter containing:
• major issues to be faced by the department during 2004-05, including the implementation of new and continuing Government initiatives;
• non-financial information such as the nature of the Outputs provided by the department and the Outcomes to which those Outputs are linked;
• financial information on a whole-of-department basis; and
• detailed Output Group information (including financial and other performance information) for each Output Group of the department.
Chapter No 19, Other General Government Sector Entities, provides information on six statutory authorities, that, together with the departments, make up the General Government Sector.
The financial information provided for each department consists of information on the total resources available to the department, including the sources of revenue, areas of expenditure, grants and subsidies and capital investment projects. Other financial information for each department is provided for Output Groups, including sources of revenue and areas of expenditure. Further details on the financial information provided by departments in Budget Paper No 2 is included in this Chapter. The financial information provided is presented on an accrual basis based on the principles in AAS29 Financial Reporting by Government Departments.
Under AAS29, financial information is set out in three separate statements – a Statement of Financial Performance, a Statement of Financial Position and a Statement of Cash Flows. These statements are conceptually the same as the Uniform Presentation Framework (UPF) Operating Statement, Balance Sheet and Cash Flow Statement respectively through which whole-of-government information is provided in Budget Paper No 1. The different names for the statements reflect the nomenclature of the Australian Accounting Standards (from which AAS29 is drawn) and the Government Finance Statistics (from which the UPF is drawn). Differences also exist in some accounting treatments in the two sets of standards. A detailed discussion of these differences is provided in Harmonisation of Government Financial Statistics and Generally Accepted Accounting Principles: Issues Paper, Department of Treasury and Finance, Tasmania and Department of Finance and Administration, March 2003.
Another valuable source of financial and other information is the annual reports of departments. Annual reports provide information on activities and performance for the financial year just completed. From 2004, the annual reports of departments must be tabled in Parliament by 31 October each year.
The Budget document The Tasmanian Government Financial System is also a useful source of information that assists readers' understanding of the content of the Budget Papers, the structure of the Tasmanian Public Sector, government financial accounting, and the Budget development, review and monitoring processes.
2 Chapter 1: Introduction To assist in reading the Budget Papers, a glossary of terms used in the Budget Papers is provided at the end of each of the two volumes of Budget Paper No 2.
Chapter 1: Introduction 3 CURRENT MINISTERIAL PORTFOLIO AND DEPARTMENTAL STRUCTURE
The diagram illustrates the current Ministerial portfolio and departmental structure of the Tasmanian Government and reflects the departmental restructure implemented under the Administrative Arrangements Order 2004. Structure of the Tasmanian Government
MINISTER PORTFOLIO DEPARTMENT
DEPARTMENT OF Premier PREMIER AND CABINET Hon Paul Lennon MHA
DEPARTMENT OF Treasurer TREASURY AND FINANCE
DEPARTMENT OF Minister for Health and HEALTH AND Human Services Hon David HUMAN SERVICES Llewellyn MHA
Minister for Police DEPARTMENT OF and Public Safety POLICE AND PUBLIC SAFETY
Hon Paula Minister for Education DEPARTMENT OF Wriedt MHA EDUCATION
Minister for Women Tasmania DEPARTMENT OF PREMIER AND CABINET Minister Assisting the Premier on Local Government DEPARTMENT OF TREASURY AND Minister for Finance FINANCE Hon Jim Cox MHA Minister for Racing DEPARTMENT OF INFRASTRUCTURE, Minister for ENERGY AND Emp loyment RESOURCES
Minister for Sport and Recreation DEPARTMENT OF ECONOMIC DEVELOPMENT Hon Lara Minister for Economic Giddings MHA Development
Minister for the Arts DEPARTMENT OF TOURISM, PARKS, HERITAGE AND THE Hon Ken Minister for Toursim, ARTS Bacon MHA Parks and Heritage
4 Chapter 1: Introduction
Structure of the Tasmanian Government (Continued)
MINISTER PORTFOLIO DEPARTMENT
Minister for DEPARTMENT OF Hon Bryan Green Infrastructure, Energy INFRASTRUCTURE, ENERGY MHA and Resources AND RESOURCES
Attorney-General DEPARTMENT OF Hon Judy JUSTICE Jackson MHA Minister for Justice and Industrial Relations DEPARTMENT OF PREMIER AND CABINET
Minister for Environment and Planning DEPARTMENT OF PRIMARY INDUSTRIES,
WATER AND THE Hon Steven Minister for Primary ENVIRONMENT Kons MHA Industries and Water
THE STRUCTURE OF DEPARTMENTAL CHAPTERS
Department Overview
Each departmental chapter commences with a section providing an outline of:
• the Department;
• the Department's strategic focus and outcomes;
• the key strategies the Department will implement to achieve its outcomes; and
• the Department's major initiatives being undertaken in the forthcoming Budget year.
Further information on initiatives and other departmental activities is provided in the section relating to each Output Group.
Chapter 1: Introduction 5 Department Information
The format of the department information provided in Budget Paper No 2 is presented in the following diagram.
Summary Agency 2004-05 Budget Information
• Summary Financial Statement
Detailed Administered Capital Output Group Items Investment 2004-05 Program
Budget
Information
• Summary • Grants and • Details of Financial Subsidies CIP Project Information Details expenditure by Output • Revenue Group collected on • Performance behalf of the Information Government
Detailed Budget Statements • Summary of Expenditure by Output Group • Statement of Financial Performance • Statement of Financial Position • Statement of Cash Flows • Reconciliation of Operating Expenses to Consolidated Fund Appropriation
As shown in this diagram, the basic structure of the information provided in Budget Paper No 2 for each department begins with a whole-of-department summary. This is then broken down into three sets of information: Output Groups; Administered Items; and Capital Investment Program. The final section comprises a summary of expenditure by Output Group, whole-of-department Budget Statements, and a reconciliation of Operating Expenses to Consolidated Fund Appropriation. This approach is consistent
6 Chapter 1: Introduction across all individual department chapters in Budget Paper No 2. It should be noted, however, that some departments do not have any Administered Items or Capital Investment Program projects. Summary Department 2004-05 Budget Information Section
The Summary Department 2004-05 Budget Information section provides a Financial Summary for the department. The statement details operating revenue (including the Consolidated Fund appropriation, Commonwealth funding and non-government funding) and operating expenses, culminating in a Net Operating Result. The section also provides a summary of expenses on an Output basis.
The annual appropriation, both recurrent and works and services, is included within Revenue from Government, and funds carried forward from previous years are transferred from the past year's Statement of Financial Position to the current year's operating revenue.
Only that component of the Capital Investment Program that funds maintenance and refurbishment of capital is included within operating expenses. In accordance with the Accrual Budgeting Framework, capital expenditure appears within the Statement of Financial Position. Net Operating Result
The Net Operating Result of a department is the excess of operating revenue over operating expenses. It excludes expenditure on the acquisition of capital assets but includes non-cash costs such as depreciation and accrued superannuation entitlements. For this reason, it differs from figures in the Statement of Cash Flows.
A Net Operating Surplus indicates that there are funds available, on an accrual basis, to increase service delivery, increase assets or to decrease liabilities. A deficit indicates that one-off expenditure may have occurred, sourced from cash reserves, to meet one-off projects or programs, and/or revenues are not sufficient to meet all expenses for the current year. Detailed Output Group 2004-05 Budget Information Section
The Detailed Output Group 2004-05 Budget Information section provides details on the department's Output Groups. A 'Description' is provided which details the major Outputs in the Group, how they are provided and how the Outputs link to departmental Outcomes. This is followed by details of revenue and expenses for each Output Group and a summary of expense by Output. Details on the 'Major Issues and Initiatives for 2004-05' for each Output Group also can be found in this section.
The Detailed Output Group 2004-05 Budget Information section also provides Output Group related performance information. Throughout Australia, jurisdictions are seeking to improve accountability by defining more clearly the policy objectives of government and measuring performance in achieving these objectives. This development is consistent with an international trend towards results-oriented service delivery. Performance Information
For Tasmanian government departments, the development and use of Output performance measures and the reporting of benchmarked performance information in Budget Papers and in annual reports forms part of the process of improving accountability for the delivery of services and the achievement of outcomes.
The presentation of department performance information in Budget Paper No 2 is the same as that adopted in 2003-04. The table presentation of the performance information is standard across all Output Groups and
Chapter 1: Introduction 7 departments and is followed by comments on the performance information. The information covers actual results for 2001-02 and 2002-03 and targets for 2003-04 and 2004-05. The approach focuses on the link department funding and expenditure, and the achievement of desired results and outcomes represented by Government policies, including endorsed Tasmania Together benchmarks. Where an department's Performance Information is linked directly to a Tasmania Together benchmark, this is denoted by the inclusion of (TT) in the Performance Information table. Detailed Budget Statements Section
The Detailed Budget Statements section, which concludes the chapter, comprises a whole-of-department Statement of Financial Performance, a Statement of Financial Position, a Statement of Cash Flows and a reconciliation of Operating Expenses to Consolidated Fund Appropriation. Statements are presented on an accrual basis and differentiate between controlled and administered items of the department based on AAS29 Financial Reporting by Government Departments. Revenue and Expense Categories
Budget Paper No 2 revenue and expense types are based on Budget categories which are consistent with the accrual Uniform Presentation Framework for the presentation of Budget information, agreed by the States, at the Australian Loan Council in March 1997.
The following is a brief description of the major revenue categories appearing in the Summary Financial Information tables for Output Groups within each department chapter in Budget Paper No 2.
Category Description
Revenue from Government - That amount that may be expended from the Consolidated Fund under the Annual Appropriation authority of an Act of Parliament and includes the recurrent and works and services appropriation. The appropriation is cash-based.
Revenue from Government - Recurrent expenses that are incurred where there is a legislative Reserved by Law requirement for funding to be provided for specific purposes without the necessity for a separate annual appropriation. This is also cash-based.
Other Other includes the cash-based carry forward of 2003-04 Consolidated Funding, to 2004-05, in accordance with section 8A(2) of the Public Account Act 1986.
Sales of Goods and Services Proceeds of the Government's provision of goods and services to individuals, groups or organisations, measured on an accrual basis.
Other Revenue All other revenue not classified in any of the above categories, measured on an accrual basis.
8 Chapter 1: Introduction The following is a brief description of the major expense categories appearing in the Summary Financial Information tables for Output Groups within each department chapter in Budget Paper No 2. All expenses are determined on an accrual basis.
Category Description
Salaries and Wages This category includes expenditure on such items as gross wages, salaries and supplements to wages and salaries (excluding superannuation), including allowances and leave payments.
Other Employee Related This category includes expenditure on employee expenses such as payroll Expenses tax and workers' compensation contributions.
Superannuation This category includes expenditure on superannuation contributions.
Depreciation and This category includes the expense systematically recognised for the Amortisation purpose of allocating the depreciable amount of an asset over its useful life.
Rent Rental expenditure.
Other Accommodation Includes expenditure on other operating expenses for the occupation of Related Expenses premises, such as fuel and power charges, local government rates, cleaning, security, property insurance and general property services.
Communications Expenditure incurred for communications such as postage, telephone, facsimile and mobile radio.
Travel and Transport Expenses for intrastate, interstate or international travel by employees. This category also includes expenditure on transport, including freight expenses, vehicle leases and running expenses such as fuel.
Advertising and Promotion Expenditure for advertising in any media, whether for publicity purposes or statutory advertising.
Consultancies Includes payment of all fees and costs charged by consultants engaged by a department.
Information Technology Expenditure for computers, software, systems development and ongoing information technology support services.
Interest Includes interest paid in respect of advances in the form of loans.
Other Supplies and All other recurrent expenses not classified in any of the above categories. Consumables
Grants and Subsidies
Information is provided for each department on its revenue and expenditure relating to Grants and Subsidies. These are payments made to individuals, groups or organisations, are determined by the Government, administered by individual departments and are non-discretionary. Departments do not have flexibility to reallocate these funds for another purpose.
Chapter 1: Introduction 9 Revenue Collected on Behalf of the Consolidated Fund
Revenue collected on behalf of the Government, comprising fees and charges, can also be found within this section of each department chapter. Fees are associated with the granting of a permit or privilege or the regulation of activity. Charges are imposed for services rendered to clients. Such fees and charges collected on behalf of the Government are, unless otherwise approved by the Treasurer, transferred into the Consolidated Fund. Further information on departmental fees and charges can also be found in Chapter 4 of Budget Paper No 1 Budget Overview 2004-05. Concessions
Details concerning concessions provided by the Government to individuals, groups or organisations can be found in Chapter 11 State Government Concessions of Budget Paper No 1 Budget Overview 2004-05. Capital Investment
Details of a department's major projects for 2004-05 under the Capital Investment Program (CIP) and sources of funds for these projects are detailed separately. The CIP comprises major capital investment projects for all departments and is funded through Works and Services funding from the Consolidated Fund and from non-Consolidated Fund sources of funding. Projects are separated into new and continuing projects. Further information on the CIP can be found in Chapter 6 State Capital Program of Budget Paper No 1 Budget Overview 2004-05. Economic and Social Infrastructure Fund
In addition to the Government's ongoing Capital Investment Program, other major projects are funded from the Economic and Social Infrastructure Fund (ESIF). Funding from the ESIF for departmental projects or activities is presented in Chapter 4 Finance-General of Budget Paper No 2. Statement of Financial Position
Presented for each department is a budgeted Statement of Financial Position for both controlled and administered items. The presentation of this statement is based on the principles in Australian Accounting Standards (AAS) and will assist in providing greater comparability between department budgeting and reporting. The Statement of Financial Position is a financial snap-shot of the department, taken at the end of each financial year, and includes data on financial assets, on holdings of fixed assets, and on the extent of liabilities such as creditors, borrowings and superannuation. Statement of Cash Flows
Presented for each department is a budgeted Statement of Cash Flows for both controlled and administered items. The presentation of this statement is based on Australian Accounting Standards (AAS) and will assist in providing greater comparability between department budgeting and reporting. This statement requires cash flows to be categorised into operating, investing and financing activities. Operating activities are those which relate to the collection of taxes, the distribution of grants, and the provision of goods and services. Investing activities are those which relate to the acquisition and disposal of assets. Financing activities are those which relate to changes in the financial assets and liabilities of the department. Other General Government Sector Entities
Chapter No 19, Other General Government Sector Entities, provides financial information on entities which are included within the General Government Sector that are not otherwise separately reported in Budget
10 Chapter 1: Introduction Paper No 2. The inclusion of a Statement of Financial Performance, Statement of Financial Position and Statement of Cash Flows for these entities ensures that information is provided on all entities within the General Government Sector.
2004-05 Across Department Budget Issues
In relation to 2004-05 departmental financial information, a number of important issues should be noted:
• the introduction of an Accrual Budgeting Framework highlighted inconsistencies in the treatment of administered expenses under Australian Accounting Standard 29 Financial Reporting by Government Departments between the budgeted and actual financial statements of departments. As emphasised in an Access Economics report, Assessment of State Budget Reports and Departmental Annual Reports (December 2002), the accountability loop for departments commences with the budgeted financial statements and concludes with the publication of actual results. Comparability of information in those reports is essential if increased accountability for the use of Government funds is to be achieved. Accordingly, following an extensive consultation process with departments, 72 of the 112 items classified as administered in the 2003-04 Budget were reclassified as controlled and three were classified as trust or department arrangements. The impact of this reclassification is reflected in the 2004-05 Budget statements of departments. The 2003-04 Budget amounts have also been recast to reflect these changes in accordance with established Budget presentation practices;
• all department 2004-05 financial estimates include additional funding to meet the estimated cost of current wage agreements; and
• the State Service (Restructuring) Order 2004 and the State Service (Restructuring) Order (No. 2) 2004 were issued on 2 February 2004 and 22 March 2004 respectively. Both Orders were made by the Governor by virtue of the State Service Act 2000. The Orders resulted in the name of the Department of Justice and Industrial Relations changing to the Department of Justice and the Office of Industrial Relations being separated from the Department of Justice and amalgamated with the Department of Premier and Cabinet. The 2003-04 original Budgets for the Department of Justice and the Department of Premier and Cabinet have been recast to reflect the new departmental structures.
OTHER BUDGET AND RELATED PAPERS
The Budget Papers aim to assist Parliament in the examination of the State Budget and provide the community with a broad range of information, including information on the performance of the State economy, the Government's revenue sources, the activities of departments, government business enterprises, state-owned companies and statutory authorities. The other Budget Papers are listed below.
Consolidated Fund Appropriation Bill
The Bill is the primary legislative instrument of the Budget. The Appropriation Bill provides authority for the expenditure of the total Recurrent Services and Works and Services expenditure, on a Ministerial portfolio basis, for each department for the 2004-05 Budget year.
Chapter 1: Introduction 11 Second Appropriation Bill
A Second Appropriation Bill for 2003-04 will be tabled shortly after the 2004-05 Budget. The Bill provides authority for expenditure of $128.5 million from the Consolidated Fund to the Economic and Social Infrastructure Fund (ESIF), an account established within the Special Deposits and Trust Fund. The ESIF will provide funding for major economic projects and the implementation of social initiatives.
Budget Speech
This document provides the full text of the Treasurer's Second Reading Speech for the Consolidated Fund Appropriation Bill 2004 which is delivered in the House of Assembly. It explains the Government's economic and financial strategy and outlines key Budget initiatives for the 2004-05 Budget year.
Budget Paper No 1 Budget Overview 2004-05
This document explains the social, economic and financial context in which the Budget has been developed. It provides a detailed explanation of the major strategies of the Government for the coming year. It also provides:
• a detailed estimate of revenue and expenses for the coming Budget year;
• a revised estimate of the revenue and expenses for the current financial year and actuals as at 31 March;
• an estimate of the revenue and expenses for the Forward Estimates (each of the following three financial years);
• an estimate of the State's assets and liabilities for the coming Budget year and the Forward Estimates; and
• details of expenditure from, and receipts to, the Consolidated Fund for the coming Budget year, the Forward Estimates, and the estimated Consolidated Fund outcome for the current financial year.
Budget Paper No 1 also includes information on the Tasmanian economy and its performance, and on Commonwealth-State financial relations.
Budget Summary
This document provides a brief summary of the major elements of the 2004-05 Budget.
The Tasmanian Government Financial System
This document provides details of government financial accounting systems, information about Budget development and monitoring processes and details of other related sources of information.
Other documents distributed with the Budget Papers
A variety of other documents will be distributed with the Budget Papers. These documents generally provide detailed information on major Government initiatives to assist in understanding the information provided in the Budget Papers.
12 Chapter 1: Introduction In 2004-05 a separate publication entitled State and Local Government Working in Partnership has been published for the first time. This document covers the majority of policy initiatives affecting Local Government and key performance measure information.
Chapter 1: Introduction 13
2 DEPARTMENT OF ECONOMIC DEVELOPMENT
AGENCY OUTLINE
The Department of Economic Development is responsible for leading economic and industry development in Tasmania. It aims to achieve community, industry and Government development goals by creating a competitive business environment, promoting and attracting investment and by assisting individuals, enterprises and industries to grow and become internationally competitive.
The Department has four divisions: Industry Development; Programs and Enterprise Improvement; Corporate Support; and the Office of the Secretary. Industry Development and Programs and Enterprise Improvement are operational divisions, responsible for activities that are closely aligned with the Department's Output structure. Corporate Support and the Office of the Secretary provide internal services supporting the activities and objectives of the two operational divisions.
The Department is the first point of contact for businesses seeking to diversify, expand or relocate in Tasmania and promotes Tasmania as the intelligent choice for technology-based businesses. The Department supports the State's information technology sector, innovation, and research and development activities.
The Department provides a statewide small business advisory and referral service and advice on major skills requirements.
The Department helps Tasmanian businesses access new markets, particularly export or import replacement markets. Antarctic Tasmania works to ensure that national and international communities recognise and use Tasmania as a gateway to the Antarctic and the Southern Ocean through provedoring, logistical, research and referral services.
The Department is overseeing the development of Tasmania's natural gas infrastructure and will assist in attracting investment and jobs as a direct and indirect outcome of the availability of natural gas.
Through Screen Tasmania, the Department provides loans, grants and investment funding to increase film, television and multimedia production and audience development, while also assisting local industry development with information and promotion.
Sport and Recreation Tasmania works to increase the number of Tasmanians undertaking sport and recreation to encourage their health and well being. The organisation also encourages business development opportunities in the sport and recreation sector. Tasmania's elite athletes are provided with services and assistance through the Tasmanian Institute of Sport (TIS).
Chapter 2: Economic Development 15 STRATEGIC FOCUS
The Department works with business in Tasmania across a broad range of industry sectors, particularly those that are focused on exports and import replacement, including innovation and technology; film, television and multimedia; sport and recreation; and Antarctic-related sectors of the Tasmanian economy. It manages projects, develops policies, undertakes planning and delivers programs and services in partnership with all these sectors to contribute to the vision articulated in Tasmania Together and to the sustainable development of the State.
The goals and benchmarks of Tasmania Together, the Industry Development Plan, the Industry Council Plans and Partnership agreements help inform the strategic focus for the Department. Through the provision of high quality information and advice, financial assistance and project facilitation and the stimulation of innovation and business development, the Department aims to achieve the following Outcomes:
• increased investment attraction;
• growth in exports;
• increased import replacement;
• improved business operator skills; and
• greater participation in sport and recreation activities; leading to sustainable jobs growth and overall improvement in the State's economy.
KEY STRATEGIES
To achieve these priority Outcomes, the Department of Economic Development is implementing the following key strategies:
• maximise investment by continuing to build business and industry sectors that are of strategic importance to the economy of the State and generate employment growth;
• capitalise on State and Commonwealth Government investment attraction assistance programs by aggressively marketing the State as a desirable business location, and maximise opportunities for the State from Commonwealth funding;
• build competitive industries and businesses through the rollout of gas infrastructure;
• stimulate business innovation and commercialisation outcomes in Tasmania;
• develop the capacity of the science and technology sector;
• continue the strategic development of small and medium-sized business enterprises, skills and employment development, coordination of industry councils, and the development of networking and clustering opportunities;
• develop export performance by identifying and promoting market opportunities with particular regard to the Tasmanian brand and its quality products and services;
16 Chapter 2: Economic Development • promote Tasmania as the ideal gateway to the Antarctic and develop opportunities in the Antarctic, Sub-Antarctic and the Southern Ocean;
• target new opportunities for growth in mining and mineral exploration, resource industries and alternative energy sources and production;
• continue to build the film, television and multimedia industries;
• secure major developments, particularly key infrastructure, by fostering conditions conducive to development, developing and expanding successful businesses, and providing funding and indirect support; and
• promote community development by encouraging Tasmanians to participate in local sport and recreation activities.
2004-05 MAJOR INITIATIVES
In 2004-05, the Department of Economic Development is implementing the following major initiatives:
• continue to facilitate the Tasmanian Natural Gas Project;
• continue to pursue investment attraction targeted at development opportunities to take advantage of the introduction of natural gas, wind energy, other elements of the Government's Energy Plan, the competitive business environment and other identified advantages;
• develop a positive image and profile for the Tasmanian manufacturing sector in conjuction with the Manufacturing Industry Council and key industry participants;
• actively pursue an increase in mineral greenfield exploration investment in Tasmania with key industry stakeholders;
• implement the Export Market Acceleration Program (EMAP) as a pilot program designed to provide a select number of enterprises with the resources and skills to develop and implement sustainable export marketing strategies;
• encourage market diversity by investigating new geographical and segmented markets, and in particular expand on activities previously undertaken in the United States of America, Denmark, South America and Republic of Korea;
• extend the Partnership to Jobs program over the next two financial years to provide sustainable employment opportunities for disadvantaged job seekers;
• implement the Government's comprehensive State Antarctic, Sub-Antarctic and Southern Ocean Policy;
• communicate the Government's science and technology research priorities and seek strategic investment for technology utilisation and commercialisation in these areas;
• promote a culture of innovation in Tasmania through the development of an on-line commercialisation facility with tools to assist entrepreneurs and potential investors and case studies highlighting Tasmanian achievements;
• continue to provide information and advice to business start-ups and micro-businesses through 14 community based Business Enterprise Centres;
Chapter 2: Economic Development 17 • implement the TIS Elite Coach Assistance Scheme;
• continue to market Tasmania as a location for contact centre operations with a focus on specialised high-value operations such as shared service, back-office processing, information technology and advanced technology industries; and
• implement initiatives to address the contraints to business identified in the 2003 Competition Index.
18 Chapter 2: Economic Development SUMMARY AGENCY 2004-05 BUDGET INFORMATION
Financial Summary
Table 2.1: Summary Financial Information for the Department of Economic Development 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 43 302) 42 385) (2.1) Other1 ....) 1 300) ....) Other Revenue2 5 055) 3 905) (22.7) TOTAL 48 357) 47 590) (1.6)
OPERATING EXPENSES Investment, Trade and Development 50 808) 48 547) (4.5) Centre for Research, Industry and Strategic Planning 1 499) 1 515) 1.1) Recreation Industry Development3 6 847) 8 383) 22.4) TOTAL 59 154) 58 445) (1.2)
NET OPERATING RESULT (10 797) (10 855) 0.5)
Notes: 1. The increase of $1.3 million represents the funds to be carried forward from 2003-04 to 2004-05 for approved industry development grants assistance. 2. The decrease in Other Revenue relates to the reduction of the interest revenue earned on the Intelligent Island funds and the reduction in revenue collected due to the run-off of the Department's Loan, Property and Equity Portfolio. 3. The increase in Recreation Industry Development represents the additional funding provided for the Premier′s Physical Activity Council, the Tasmanian Institute of Sport – Elite Coach Assistance Scheme and AFL Football Junior Development and other grants received in 2003-04 being spent in 2004-05.
Chapter 2: Economic Development 19 Infrastructure Funds
Table 2.2: Infrastructure Funds Allocations of the Department of Economic Development
2003-04 2004-05 Budget Budget Variation $'000 $'000 %
Economic and Social Infrastructure Fund (ESIF) Gas Infrastructure1 8 000 20 334 154.2 Industry Assistance Program 2 000 2 000 .... Partnership to Jobs Program2 1 400 1 360 (2.9) TOTAL ESIF 11 400 23 694 107.8
Social Infrastructure Fund (SIF) Premier's Physical Activity Council 100 100 … TOTAL SIF 100 100 …
TOTAL INFRASTRUCTURE FUND ALLOCATIONS 11 500 23 794 106.9
Notes: 1. The increase in Gas Infrastructure reflects the Government's contribution to Powerco for the continued advancement of the Statewide gas distribution network (Stage 2A). 2. The Partnership to Jobs Program for 2004-05 includes a carry forward amount of $860 000 from the $1.4 million allocated in 2003-04.
20 Chapter 2: Economic Development DETAILED OUTPUT GROUP 2004-05 BUDGET INFORMATION
The individual Outputs of the Department of Economic Development are provided under the following Output Groups:
Output Group 1: Investment, Trade and Development;
Output Group 2: Centre for Research, Industry and Strategic Planning; and
Output Group 3: Recreation Industry Development.
Output Group 1: Investment, Trade and Development Description
This Output Group provides strategically focused services that are responsive to industry needs. These services are focused on enhancing and encouraging acceleration in the sustainable development of Tasmania's economy in line with the Government's Industry Development Plan.
Economic benefits for Tasmania are realised through increased productive capacity, investment, employment and earnings. Furthermore, if these objectives are achieved, potential investors will gain confidence in Tasmania's market strengths.
The Output Group supports a number of Departmental Outcomes, in particular:
• the development of a strong and innovative business culture resulting in increased investment and job creation;
• the attraction of new investment to the State;
• increased infrastructure development;
• increased local, national and international opportunities for business in Tasmania;
• enhanced capability of Tasmanian businesses; and
• maximised import replacement and local content.
Activities undertaken as part of this Output Group include:
• attraction and facilitation of investment in Tasmania through high quality professional support for clients in strategic industry sectors and enterprises;
• targeted services to assist Tasmanian businesses with the identification and development of new domestic and overseas markets and export opportunities;
• coordination of international marketing activities promoting Tasmania as a provider of high quality education services;
• project support services for potential investors considering major strategic economic development opportunities;
Chapter 2: Economic Development 21 • assistance to businesses and buying organisations in sourcing requirements from local producers of goods, equipment and services that are competitive against imports;
• promotion of Tasmania's international profile as a centre for Antarctic and Sub-Antarctic activity and increasing the amount of expenditure in Tasmania from Antarctic-related enterprises;
• specialist financial services to help targeted businesses obtain private sector finance;
• administration of the Government's industry development Loan, Property and Equity Portfolios;
• facilitation of private sector support for strategic property development;
• targeted services supporting the development and marketing of a viable, sustainable, internationally competitive innovation, science and technology industry sector including the Tasmanian Innovations Program;
• operation and ongoing development of the Tasmanian Technoparks in Hobart and Launceston;
• delivery of small business and enterprise support programs through intensive client management support for small to medium-size enterprises with significant growth potential and through services delivered by regional offices and Business Enterprise Centres located around the State; and
• identifying skill shortages and developing programs to meet the short, medium and long-term skills requirements of Tasmanian business and industry.
22 Chapter 2: Economic Development Table 2.3: Summary Financial Information - Output Group 1 2003-04) 2004-05) Investment, Trade and Development Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 36 105) 34 369) (4.8) Other1 ....) 1 300) ....) Investment Income2 2 787) 1 637) (41.3) Sales of Goods and Services 386) 386) ....) TOTAL 39 278) 37 692) (4.0)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 8 609) 8 685) 0.9) Other Employee Related Expenses 598) 582) (2.7) Superannuation 993) 939) (5.4) Depreciation and Amortisation 747) 805) 7.8) Borrowing Costs 5 103) 4 903) (3.9) Grants and Transfer Payments 28 110) 26 260) (6.6) Supplies and Consumables Consultants3 518) 338) (34.7) Maintenance and Property Services 1 358) 1 222) (10.0) Communications 346) 336) (2.9) Information Technology4 1 048) 1 183) 12.9) Travel and Transport 957) 962) 0.5) Advertising and Promotion 723) 673) (6.9) Other Supplies and Consumables 1 698) 1 659) (2.3) TOTAL 50 808) 48 547) (4.5)
EXPENSE BY OUTPUT 1.1 Trade Development and Export Marketing 3 208) 3 269) 1.9) 1.2 Food and Beverages Industry Development5 1 748) 1 159) (33.7) 1.3 Manufacturing and Services Industry Development6 4 824) 4 136) (14.3) 1.4 Resource Processing and Energy Industry Development7 1 826) 2 353) 28.9) 1.5 Antarctic Industry Development 857) 860) 0.4) 1.6 Investment Attraction and Finance Facilitation 8 263) 7 996) (3.2) 1.7 Innovations, Science and Technology Services 24 011) 22 280) (7.2) 1.8 Small and Medium Enterprise Services 4 439) 4 853) 9.3) 1.9 Skills and Employment Services 1 632) 1 641) 0.6) TOTAL 50 808) 48 547) (4.5)
Notes: 1. The increase of $1.3 million represents funds to be carried forward from 2003-04 to 2004-05 for approved industry development grants assistance.
Chapter 2: Economic Development 23 2. The decrease in Investment Income relates to the reduction of the interest revenue earned on the Intelligent Island funds and the reduction in revenue collected due to the run-off of the Department's Loan, Property and Equity Portfolio. 3. The decrease in Consultants relates to reduced operational expenditures for the Intelligent Island Program. 4. The increase in Information Technology is due to new management information systems development. 5. The Food and Beverages Industry Development Output has reduced due to the final drawdown in 2003-04 of an approved industry development grant. 6. The Manufacturing and Services Industry Development Output has reduced as a result of one-off funding received in 2003-04 for an approved industry development grant. 7. The Resource Processing and Energy Industry Development Output has increased as a result of the internal reallocation of increased project resources.
Major Issues and Initiatives for 2004-05
Major issues and initiatives for this Output Group in 2004-05 include: Export and Market Development • continue to manage the service delivery of the Commonwealth Government's exporter development program, TradeStart, to increase the number of Tasmanian exporting companies;
• continue the development of national and international markets for Tasmanian goods and services through planned activities involving export facilitation and promotions, supported by the continuation of the Export Market Assistance Scheme and the expansion of the Inward Buyer Program;
• maintain a program of market retention of, and business relations with, key Asian markets;
• encourage market diversity by investigating new geographical and segmented markets, and in particular expand on activities previously undertaken in the United States of America, Denmark, South America and Republic of Korea;
• further the development of the Tasmanian export sector through a series of seminars and workshops to deliver the latest trends and regulations to international trade;
• implement the Export Market Acceleration Program (EMAP) as a pilot program designed to provide a select number of enterprises with the resources and skills to develop and implement sustainable export marketing strategies;
• continue the development of export awareness and an export culture in Tasmania through activities such as the facilitation of the Tasmanian Export Award Program;
• develop and facilitate a Tasmanian branded presence at the World Expo to be held in Japan;
• continue market development activities in Britain, South Africa, the Netherlands and China as potential sources of business and skilled migrants;
• further develop new market opportunities for Tasmanian Government schools and TAFE Tasmania in existing source countries; and
• develop coordinated marketing activities for the Tasmanian Education Alliance that consists of all registered education providers to international students. Food and Beverages Industry Development • work with industry and other government agencies to develop priority sectors through involvement at state level with groups such as the Ministerial Organics Advisory Group and the Agricultural Research Advisory Committee and at the Commonwealth level through the National Food Industry Strategy States' Alliance and the Primary Industry Standing Food Committee;
24 Chapter 2: Economic Development • continue to work cooperatively with the Department of Primary Industries, Water and Environment and industry associations in support of strategic outcomes through the Government's State of Growth initiative;
• provide targeted assistance to facilitate the development of specific projects that produce economic and strategic benefits for the Tasmanian Food and Beverage Sector;
• continue to support the Food Industry Council and the implementation of the Tasmanian Food Industry Strategy for the overall growth of the sector; and
• undertake investment attraction activities in areas with development capacity that support the Brand Tasmania image. Manufacturing and Services Industry Development • implement infrastructure development projects arising out of local Partnership agreements;
• development of a tourism and industrial sites database covering all municipalities;
• continue the identification, assembly and marketing of sustainable tourism infrastructure development opportunities identified under the Tourism Development Framework and the Crown Land Development Protocol;
• participate in a wide range of steering committees, working groups and interdepartmental committees in relation to specific projects capable of delivering job creation and investment opportunities;
• further develop Tasmania's capacity in the local manufacture of components for the wind turbine manufacturing industry;
• increase the start-up, expansion, diversification and sustainable development of manufacturing and services industries in Tasmania;
• enhance strategic partnerships with the Manufacturing Industry Council and other key bodies to maximise industry outcomes;
• support and facilitate the development of industry networks and clusters that will accelerate opportunities and enhance the international positioning, penetration and success of the manufacturing industry in global markets;
• collaborate with other key industry sectors to identify new opportunities that contribute to investment, growth and employment;
• encourage investment in Tasmanian manufacturing, services and infrastructure projects to fill capability gaps and improve competitiveness by leveraging new manufacturing opportunities arising from the introduction of natural gas and wind energy to the State;
• develop a positive image and profile for the Tasmanian manufacturing sector in conjunction with the Manufacturing Industry Council and key industry participants;
• assist with the formation of a heavy/light engineering network capable of achieving outcomes through business alliances and collaboration;
• investigate opportunities with Australian Defence procurement that could exist for local manufacturing and information and communication technology (ICT) business expansion and growth;
Chapter 2: Economic Development 25 • provide support to major project proponents with procurement services that include identifying local suppliers, facilitating industry briefings, capability assessments and logistical support;
• assist local industry to maximise opportunities in Australian/New Zealand projects by disseminating information and promoting Tasmanian capability throughout the Industry Capability Network (ICN);
• continue to maximise Tasmanian content in current major energy infrastructure projects such as wind farms, natural gas reticulation and Basslink; and
• continue to assist Tasmanian industry to maximise opportunities for the supply of goods and services to government. Resource Processing and Energy Industry Development • pursue a sustainable increase in greenfield mineral exploration investment to ensure mining remains a strong contributor to the Tasmanian economy;
• assist existing mining and mineral processing operations in the State to maintain and improve their competitive positions;
• continue facilitation of the Tasmanian Natural Gas Project;
• continue to identify development opportunities that can take advantage of the introduction of natural gas and other elements of the Government's Energy Plan;
• as part of a broader Greenhouse strategy, support the development of industries and enterprises that have a renewable energy focus; and
• provide support to businesses seeking assistance to invest in downstream value-adding of wood and timber products. Antarctic Industry Development • coordinate implementation of the Government's comprehensive 2004 State Antarctic, Sub-Antarctic and Southern Ocean Policy;
• lobby the Commonwealth Government to provide adequate funding for full implementation of the Antarctic Airlink to operate between Hobart and Casey Station in East Antarctica;
• develop infrastructure and support services to maximise the benefits to the State from the implementation of the Air Transport Service;
• encourage new Antarctic organisations to establish a presence in Hobart, which includes supporting Australia's bid to permanently host the Secretariat for the Agreement for Albatrosses and Petrels (ACAP) in Hobart;
• increase the participation of Tasmanian companies in the business of providing goods and services to Antarctic operators;
• promote the capacities and expertise of Tasmania's Antarctic industry to members of the Scientific Committee on Antarctic Research (SCAR) and the Council of Managers of National Antarctic Programs (COMNAP) at their biannual international Antarctic trade exhibition held in Bremen, Germany;
• support the University of Tasmania to host an international meeting in Hobart to establish a University of the Antarctic; and
• support the Antarctic Tasmania Mid-Winter Festival as a major event for Tasmania.
26 Chapter 2: Economic Development Investment Attraction and Finance Facilitation • continue to pursue the introduction of innovative financiers to the State who are able to provide new opportunities for appropriate funding arrangements to strategically placed businesses capable of contributing to the Tasmanian economy;
• continue to market Tasmania's capabilities and competitive advantages as an ideal location for contact centre operations with a particular focus on attracting specialised high value operations such as shared service, back-office processing, information technology and advanced technology industries;
• develop investment attraction opportunities in niche technology sectors including e-learning and e-health including the attraction of technology trials and development activities to the State;
• enhance strategic partnerships with the Information Technology Industry Council and other key bodies to maximise industry outcomes;
• facilitate and support the establishment of industry networks and clusters for the ICT industry sector to accelerate opportunities and to enhance the international positioning, access and success of the industry in global markets;
• develop opportunities to assist the State's strategically placed emerging and high-growth potential industry sectors with financial support to encourage expansion and innovation;
• provide high-level financial analysis on the State's strategic and emerging industry sectors;
• collate and document qualified opportunities for the investment market in all industry sectors; and
• provide support to those Tasmanian businesses that may be experiencing financial stress and are identified as being strategic to the State's economy. Innovation, Science and Technology Industry Development • define and communicate the Government's science and technology research priorities for the State and seek strategic investment for technology utilisation and commercialisation in these areas;
• promote a culture of innovation in Tasmania through the development of an on-line commercialisation facility with tools to assist entrepreneurs and potential investors including case studies highlighting Tasmanian achievements and a newsletter publication;
• expand the Technology Industry Development Program to include a strong focus on science and technology in order to maximise the full economic benefit from investment in research and development activities through partnerships such as that with the Antarctic and Climate Ecosystems Cooperative Research Centre and by networking amongst the Tasmanian science and technology community and targeted commercialisation assistance;
• explore the opportunities within Tasmania's emerging biotechnology sector;
• develop 150 innovative companies through participation in the Commercialisation Ready Program and the i-cubed Network;
• continue to work with the Tasmanian Science and Technology Industry Council and Tasmanian-based research institutions to maximise commercialisation of research in Tasmania;
• develop a 'Coalition of Interest' in innovation involving individuals and organisations working together towards the achievement of innovation-related Tasmania Together benchmarks; and
Chapter 2: Economic Development 27 • continue to work with the education sector to encourage the development of curriculum that encourages a culture of innovation, enterprise and creativity and leads to the development of an entrepreneurial culture in Tasmania. Small and Medium Enterprise Services • continue to deliver client management services including the Enterprise Development Program to assist business with the development of strategic plans, marketing strategies, preparation for equity raising and preparation of information memoranda;
• provide Local Employment Initiatives that are targeted at local communities to encourage them to conduct activities that will create long-term employment in Tasmania. The initiatives are usually conducted through Business Enterprise Centres around the State; and
• continue to provide information and advice to business start-ups and micro-businesses through 14 community based Business Enterprise Centres. A revised Enterprise Centre program has been implemented to build upon the success of the current program, the demonstrated capabilities of Enterprise Centres and the success of the new 'Business Point' referral process. Skills and Employment Services • continue to ensure a skilled labour force is available for the further development of the Tasmanian Natural Gas Project, with a particular focus on preparation for the distribution phase of the project;
• examine skills issues facing Tasmania's changing energy industry, particularly with regard to new energy sources such as natural gas, wind energy and Basslink; and
• develop a structured government response to assist employees in Tasmanian enterprises where there is significant change in employment requirements or circumstances.
28 Chapter 2: Economic Development Table 2.4: Performance Information – Output Group 1 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure Measure Actual Actual Target Target
Jobs created and retained1 Number 4 754 5 312 4 229 4 403 Investment facilitated $ million 482.1 390.3 432.9 409.6 Export contracts facilitated $ million 12.4 11.8 11.9 12.5 Value of international students $ million 8.0 8.8 9.5 10.0 Value of business migration2 $ million 14.522.6 18.0 17.0 Expenditure retained in the State from Antarctic- related purchases from organisations in Tasmania % 52 n.a. 52 52 Small and medium enterprise client and Business Licence Information Service contacts3 Number 5 000 6 220 5 570 6 200
Notes: 1. The decrease in the jobs created and retained target in 2003-04 and 2004-05 is primarily due to reduced activity in the contact centre sector. 2. The increase in the value of business migration target in 2002-03 reflects a number of high-value business migrants entering Tasmania during the year. 3. The increase in small and medium enterprise client and Business Licence Information Service contacts for 2004-05 reflects the improved economic performance and business activity within the State.
Chapter 2: Economic Development 29 Output Group 2: Centre for Research, Industry and Strategic Planning Description The functions previously undertaken by the Centre for Research, Industry and Strategic Planning (CRISP) are now the responsibility of the Investment Attraction and Research Unit. The Unit undertakes research-based projects linked to generating increased investment in Tasmania. The research-based projects focus on three themes:
• creating an increasingly competitive business environment;
• maximising opportunities arising from Tasmania's infrastructure projects; and
• identifying investment and reinvestment opportunities for the State, particularly those that will support Tasmania's key future industries.
Activities undertaken as part of this Output Group include:
• identifying key issues and initiating high-level research into complex economic and industry policy areas to support and develop the Government's economic development policies;
• managing the provision of cross-agency research services directed at assisting business units to identify and understand investment and business growth opportunities;
• consulting with stakeholders in Tasmania's business environment about issues affecting the State's relative competitiveness and identifying appropriate initiatives to address constraints or maintain strengths;
• providing research and analysis capacity to support the work of the Tasmanian Development Board;
• developing and maintaining a network of contacts with industry, economic commentators and academic bodies to ensure that the Department is abreast of current industry issues, trends and opportunities;
• ensuring financial institutions, economic commentators and industry and investment groups outside the State are regularly informed about the State's economic progress;
• managing the Department's relationship with Invest Australia and other Commonwealth Government investment-focussed agencies and representing the Department and the Government on inter-departmental, state and national committees and in other forums as required;
• providing significant input to the development and implementation of the corporate objectives of the Department and the strategic objectives of the Government;
• developing appropriate processes for reporting on Partnership agreements;
• coordinating the Department's responses to Partnership agreements;
• providing administrative support for the eight industry councils;
• establishing appropriate monitoring and reporting processes for Government policy such as Tasmania Together;
30 Chapter 2: Economic Development • coordinating the Department's identification of emerging issues, undertaking research and critical analysis and acting as a catalyst for action particularly where there is a strategic opportunity for the State; and
• coordinating responses to the Tasmania Together benchmarks.
Table 2.5: Summary Financial Information - Output Group 2 2003-04) 2004-05) Centre for Research, Industry and Strategic Planning Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 1 499) 1 515) 1.1) TOTAL 1 499) 1 515) 1.1)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 881) 894) 1.5) Other Employee Related Expenses 65) 68) 4.6) Superannuation 103) 103) ....) Supplies and Consumables Consultants 72) 72) ....) Maintenance and Property Services 131) 131) ....) Communications 31) 31) ....) Information Technology 35) 35) ....) Travel and Transport 33) 33) ....) Advertising and Promotion 21) 21) ....) Other Supplies and Consumables 127) 127) ....) TOTAL 1 499) 1 515) 1.1)
EXPENSE BY OUTPUT 2.1 Industry Planning and Policy 951) 962) 1.2) 2.2 Industry Councils Support 548) 553) 0.9) TOTAL 1 499) 1 515) 1.1)
Major Issues and Initiatives for 2004-05
Major issues and initiatives for this Output Group in 2004-05 include: Industry Planning and Policy • implement a comprehensive response to the 2003 Competition Index through extensive consultation with various stakeholder groups concerned with Tasmania's business environment, to identify appropriate intiatives to address constraints to business;
• using a similar consultative approach in addition to the provision of high-quality research, identify key likely future industries and investment opportunities for the State;
Chapter 2: Economic Development 31 • incorporate the outcomes of the projects outlined above into the 2004 Industry Development Plan;
• establish a reinvestment and 'after care' strategy and schedule;
• further develop research capability to effectively support whole-of-agency and whole-of-government policy and strategy development; and
• deliver presentations to financial institutions and economic commentators about Tasmania's economic performance. Industry Councils Support • further develop industry councils by transferring responsibility for the councils to the appropriate business unit; and
• continue to support industry councils with quality information, advice and services.
Table 2.6: Performance Information – Output Group 2 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure Measure Actual Actual Target Target
Number of industry councils operating Number 7 8 8 8 Number of industry plans being implemented Number 2 6 7 8
Output Group 3: Recreation Industry Development Description
This Output Group contributes to a range of Government economic and social development policies through the development of film, multimedia and recreation outcomes for Tasmanians. This includes a focus on both social and economic outcomes from maximising the film, multimedia and recreation assets of the State and through the development of film, multimedia and recreation industries.
The Output Group supports a number of Departmental Outcomes, in particular:
• the creation of development opportunities in the film, multimedia and sport and recreation industries; and
• the development of Tasmanian film, multimedia and sport and recreation industries and services that promote excellence, participation in, and access to a wide range of activities.
Activities undertaken as part of this Output Group include:
• development of sport and recreation organisations;
• development of local community sport and recreation opportunities;
• provision of support programs for elite athletes;
• provision of financial assistance for the sport and recreation sector; and
• development and support for the film, television and multimedia industries within Tasmania.
32 Chapter 2: Economic Development Table 2.7: Summary Financial Information - Output Group 3 2003-04) 2004-05) Recreation Industry Development Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 5 698) 6 501) 14.1) Investment Income 900) 900) ....) Grants 833) 833) ....) Sales of Goods and Services 149) 149) ....) TOTAL 7 580) 8 383) 10.6)
OPERATING EXPENSES Employee Entitlements Salaries and Wages1 1 898) 2 256) 18.9) Other Employee Related Expenses 138) 141) 2.2) Superannuation1 249) 209) (16.1) Grants and Transfer Payments2 3 281) 4 214) 28.4) Supplies and Consumables Consultants1 126) 101) (19.8) Maintenance and Property Services1 265) 228) (14.0) Communications 101) 104) 3.0) Information Technology1 59) 139) 135.6) Travel and Transport 171) 181) 5.8) Advertising and Promotion 333) 310) (6.9) Other Supplies and Consumables1 226) 500) 121.2) TOTAL 6 847) 8 383) 22.4)
EXPENSE BY OUTPUT 3.1 Sport and Recreation1 5 826) 7 273) 24.8) 3.2 Film, TV and Multimedia Industry Development 1 021) 1 110) 8.7) TOTAL 6 847) 8 383) 22.4)
Notes: 1. The movement in operating revenues and expenses is due to additional funding received for the Premier′s Physical Activity Council, the Tasmanian Institute of Sport – Elite Coach Assistance Scheme and AFL Football Junior Development. 2. The increase in Grants and Transfer Payments relates to other funding received in 2003-04 being spent in 2004-05.
Major Issues and Initiatives for 2004-05
Major issues for this Output Group in 2004-05 include: Sport and Recreation • provide leadership and advice to sport and recreation organisations through facilitation, policy development and planning support for infrastructure and organisational development;
Chapter 2: Economic Development 33 • provide sport and recreation grants for the purposes of sport and recreation, to create environments that encourage Tasmanians to access quality sport and recreation opportunities;
• develop initiatives that provide sport and recreation opportunities for people in rural and regional communities;
• implement the service agreement with Surf Life Saving Tasmania, incorporating aspects of the Tasmanian Water Safety Strategy;
• design and implement the TIS Elite Coach Assistance Scheme;
• continue to coordinate a whole-of-community strategic approach to physical activity through the Premier's Physical Activity Council;
• provide high performance athlete and coach development, including sports science, coaching resources, talent identification and athlete career and education services through the TIS;
• create awareness of the importance of physical activity and promote active participation in sport and recreation through community visits by TIS athletes and staff to rural and regional areas;
• funding is made available for sport scholarships to individual athletes and team squads where individuals may use their scholarships to meet performance related costs, including travel to competitions, equipment purchases, venue costs for training purposes, sports science, sports medicine and nutrition costs. Team scholarships may additionally be used for bringing elite and national coaches to Tasmania;
• continue to provide 400 young people with personal development through Project Hahn programs;
• consolidate existing, and expand new, sport and recreation development projects for the indigenous community and special needs groups;
• continue to provide funding for the operating deficit of the Tasmanian International Velodrome in accordance with the Tasmanian International Velodrome Management Authority Act 1984;
• develop linkages between school and community sport to increase the range and quality of sporting opportunities for school age children; and
• continue to support safety on beaches through assistance to Surf Life Saving Tasmania. Film, TV and Multimedia Industry Development • continue to increase co-production with television networks;
• provide financial assistance to the industry through the funding round program;
• continue to develop the skill base of creative teams and industry members to enable excellence in creative output;
• continue to promote Tasmania locally, nationally and internationally as a unique location for film production;
• develop niche areas such as animation where the Tasmanian industry can be competitive on a national and international level; and
• provide screen initiatives that increase the film-going audience and screen network through a film festival, Screen Tasmania′s web site and a screenwriting course.
34 Chapter 2: Economic Development Table 2.8: Performance Information – Output Group 3 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure Measure Actual Actual Target Target
Participation in exercise, recreation and sport1 % 75.9 n.a. 77.8 79.0 Number of sport clubs registered as part of the club development network2 Number 202n.a. 205 210 Tasmanian Institute of Sport scholarship holders in national teams Number 45 53 53 45
Notes: 1. Information source: Exercise, Recreation and Sport Survey. Previous measure ′Participation in Sport and Recreation′ is no longer measured on a consistent basis by the Australian Bureau of Statistics. 2. Information source: Australian Sports Commission (ASC). The data relating to the number of sport and recreation organisations attaining an industry quality standard is no longer measured by the ASC. The revised measure reflects comparable data available from ASC.
Revenue Collected on Behalf of the Consolidated Fund
Table 2.9: Revenue Collected on Behalf of the Consolidated Fund 2003-04) 2004-05) Budget Budget Variation $'000 $'000 % REVENUE Sales of Goods and Services 1 100) 1 100) .... TOTAL REVENUE 1 100) 1 100) ....
Transfers to the Consolidated Fund Other Fees and Recoveries 1 100) 1 100) .... TOTAL TRANSFERS TO THE CONSOLIDATED FUND 1 100) 1 100) ....
Chapter 2: Economic Development 35 DETAILED BUDGET STATEMENTS
Table 2.10: Output Group Expense Summary for the Department of Economic Development 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) Minister for Economic Development Output Group 1 - Investment, Trade and Development 1.1 Trade Development and Export Marketing 3 208) 3 269) 1.9) 1.2 Food and Beverages Industry Development1 1 748) 1 159) (33.7) 1.3 Manufacturing and Services Industry Development2 4 824) 4 136) (14.3) 1.4 Resource Processing and Energy Industry Development3 1 826) 2 353) 28.9) 1.5 Antarctic Industry Development 857) 860) 0.4) 1.6 Investment Attraction and Finance Facilitation 8 263) 7 996) (3.2) 1.7 Innovations, Science and Technology Services 24 011) 22 280) (7.2) 1.8 Small and Medium Enterprise Services 4 439) 4 853) 9.3) 1.9 Skills and Employment Services 1 632) 1 641) 0.6) 50 808) 48 547) (4.5) Output Group 2 - Centre for Research, Industry and Strategic Planning 2.1 Industry Planning and Policy 951) 962) 1.2) 2.2 Industry Councils Support 548) 553) 0.9) 1 499) 1 515) 1.1) Output Group 3 - Recreation Industry Development 3.2 Film, TV and Multimedia Industry Development 1 021) 1 110) 8.7) 1 021) 1 110) 8.7)
Minister for Sport and Recreation Output Group 3 - Recreation Industry Development 3.1 Sport and Recreation4 5 826) 7 273) 24.8) 5 826) 7 273) 24.8)
TOTAL AGENCY 59 154) 58 445) (1.2)
Notes: 1. The Food and Beverages Industry Development Output has reduced due to the final drawdown in 2003-04 of an approved industry development grant. 2. The Manufacturing and Services Industry Development Output has reduced as a result of one-off funding received in 2003-04 for an approved industry development grant. 3. The Resource Processing and Energy Industry Development Output has increased as a result of the internal reallocation of increased project resources. 4. The increase in Recreation Industry Development represents the additional funding received for the Premier′s Physical Activity Council, the Tasmanian Institute of Sport – Elite Coach Assistance Scheme and AFL Football Junior Development.
36 Chapter 2: Economic Development Table 2.11: Statement of Financial Performance for the Department of Economic Development 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 43 302) 42 385) (2.2) Other1 ....) 1 300) ....) Investment Income2 3 687) 2 537) (31.2) Grants 833) 833) ....) Sales of Goods and Services 1 635) 1 635) ....) TOTAL 49 457) 48 690) (1.6)
OPERATING EXPENSES Employee Entitlements 12 189) 12 626) 3.5) Superannuation 1 345) 1 251) (7.0) Depreciation and Amortisation 747) 805) 7.7) Borrowing Costs 5 103) 4 903) (4.0) Grants and Transfer Payments 31 391) 30 474) (3.0) Supplies and Consumables 8 379) 8 386) ....) Transfer to the Consolidated Fund 1 100) 1 100) ....) TOTAL 60 254) 59 545) (1.2)
NET OPERATING RESULT (10 797) (10 855) 0.5)
Notes: 1. The increase of $1.3 million represents funds to be carried forward from 2003-04 to 2004-05 for approved industry development grants assistance. 2. The decrease in Investment Income relates to the reduction of the interest revenue earned on the Intelligent Island funds and the reduction in revenue collected due to the run-off of the Department's Loan, Property and Equity Portfolio.
Chapter 2: Economic Development 37 Table 2.12: Statement of Financial Position as at 30 June for the Department of Economic Development 2004) 2005) Budget) Budget) Variation) $'000) $'000) %) CURRENT ASSETS Cash1 11 343) 16 144) 42.3) Receivables 513) 491) (4.3) Investments2 28 731) 35 065) 22.0) Prepayments 213) 215) 0.9) TOTAL 40 800) 51 915) 27.2)
NON-CURRENT ASSETS Investments2 21 142) 17 386) (17.8) Equity Investments3 10 541) 6 689) (36.6) Land and Buildings4 33 704) 20 752) (38.5) Plant and Equipment5 2 441) 2 051) (16.0) Other 1 132) 1 050) (7.3) TOTAL 68 960) 47 928) (30.5)
TOTAL ASSETS 109 760) 99 843) (9.1)
CURRENT LIABILITIES Payables6 552) 649) 17.5) Interest Bearing Liabilities7 53 668) 36 144) (32.7) Employee Entitlements 1 040) 983) (5.5) Accrued Expenses 1 108) 1 139) 2.7) Other 2 328) 2 550) 9.5) TOTAL 58 696) 41 465) (29.4)
NON-CURRENT LIABILITIES Interest Bearing Liabilities 15 827) 15 478) (2.3) Employee Entitlements 2 138) 1 932) (9.7) Other 8 659) 8 404) (3.0) TOTAL 26 624) 25 814) (3.0)
TOTAL LIABILITIES 85 320) 67 279) (21.2)
NET ASSETS 24 440) 32 564) 33.2)
38 Chapter 2: Economic Development Table 2.12: Statement of Financial Position as at 30 June for the Department of Economic Development (continued) 2004) 2005) Budget) Budget) Variation) $'000) $'000) % ADMINISTERED ITEMS
CURRENT ASSETS Tax Assets 819) 815) (0.5) TOTAL 819) 815) (0.5)
NON-CURRENT ASSETS TOTAL ....) ....) ....)
TOTAL ASSETS 819) 815) (0.5)
CURRENT LIABILITIES TOTAL ....) ....) ....)
NON-CURRENT LIABILITIES TOTAL ....) ....) ....)
TOTAL LIABILITIES ....) ....) ....)
NET ASSETS 819) 815) (0.5)
Notes: 1. The increase in Cash is due to the sale of industry development properties controlled by the Department and the continuing repayment of client advances. 2. The movement in Investments is due to the reclassification between Current and Non-Current and the continuing repayment of client advances. 3. The decrease in Equity Investments is due to the estimated diminution in the value of equities held as at 30 June 2003 to reflect difference in valuation during 2003-04 and 2004-05. 4. The decrease in Land and Buildings is due to the sale of industry development properties controlled by the Department and the annual depreciation charges. 5. The reduction in Plant and Equipment reflects adjustments to the carrying value of assets to reflect annual depreciation charges. 6. The increase in Payables reflects increased interest payable due to the reclassification of borrowings held by the Department. 7. The decrease in Interest Bearing Liabilities reflects the repayment of the Incat Pty Ltd loan.
Chapter 2: Economic Development 39 Table 2.13: Statement of Cash Flows for the Department of Economic Development 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) CASH FLOWS FROM OPERATING ACTIVITIES Receipts Revenue from Government Appropriation 43 302) 42 385) (2.2) Interest Received1 3 687) 2 537) (31.2) Grants 833) 833) ....) Sales of Goods and Services 1 640) 1 640) ....) Payments Employee Entitlements (12 206) (12 643) 3.5) Superannuation (1 348) (1 254) (7.0) Borrowing Costs (5 153) (4 953) (3.9) Grants and Transfer Payments (31 291) (30 374) (3.0) Supplies and Consumables (8 364) (8 371) ....) Transfers to the Consolidated Fund (1 100) (1 100) ....) NET CASH FROM/(USED IN) OPERATING ACTIVITIES (10 000) (11 300) 13.0)
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of Fixed Assets ....) (200) ....) Net Purchase of Investments2 5 000) 10 000) 100.0) NET CASH FROM/(USED IN) INVESTING ACTIVITIES 5 000) 9 800) 96.0)
CASH FLOWS FROM FINANCING ACTIVITIES Net Borrowings (146) (146) ....) NET CASH FROM/(USED IN) FINANCING ACTIVITIES (146) (146) ....)
Net Increase/(Decrease) In Cash Held (5 146) (1 646) (68.1)
Cash at the Beginning of Reporting Period 16 489) 17 790) 7.8)
Cash at the End of Reporting Period 11 343) 16 144) 42.3)
Notes: 1. The decrease in Investment Income relates to the reduction of the interest revenue earned on the Intelligent Island funds and the reduction in revenue collected due to the run-off of the Department's Loan, Property and Equity Portfolio. 2. The increase in Net Purchase of Investments is due to the redemption of Intelligent Island funds from deposit at Tascorp.
40 Chapter 2: Economic Development Table 2.13: Statement of Cash Flows for the Department of Economic Development (continued) 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) ADMINISTERED ITEMS
CASH FLOWS FROM OPERATING ACTIVITIES Receipts GST Receipts 7 700) 7 700) ....) Payments GST Payments (7 700) (7 700) ....) NET CASH FROM/(USED IN) OPERATING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM INVESTING ACTIVITIES NET CASH FROM/(USED IN) INVESTING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held ....) ....) ....)
Cash at the Beginning of Reporting Period ....) ....) ....)
Cash at the End of Reporting Period ....) ....) ....)
Chapter 2: Economic Development 41 Table 2.14: Reconciliation of Operating Expenses to Consolidated Fund Appropriation 2003-04 ) 2004-05) Budget Budget $'000 $'000)
Total Operating Expenses 60 254 59 545
Adjustments for Non-cash Items Depreciation (747) (805) Employee Entitlements 20 20 Grants and Transfer Payments (100) (100) Borrowing Costs 50 50 Supplies and Consumables (15) (15) Total Cash Cost of Outputs 59 462 58 695
Other Funding Sources (2 810) (4 110) Redemption of Investments (12 250) (11 100) Transfers to Consolidated Fund (1 100) (1 100)
Total Consolidated Fund Appropriation 43 302 42 385
42 Chapter 2: Economic Development 3 DEPARTMENT OF EDUCATION
AGENCY OUTLINE
The Department provides services through:
• a school system which divides Tasmania into six education districts and operates a total of 218 schools and colleges - one unlinked kindergarten, 140 primary schools, 12 special schools, 26 district high schools, 31 high schools and eight secondary colleges;
• the funding and provision of Vocational Education and Training Services through the Institute of TAFE Tasmania and other training providers, including the administration of apprenticeships and traineeships;
• the provision of Adult Education programs which provide a diverse array of learning activities throughout the State for adults to participate in. Responsibility for Adult Education has recently moved from the Institute of TAFE Tasmania to the Department of Education;
• a system of statewide library and information services which delivers its services through a network of seven city libraries, 41 branch libraries, five reference and specialist collections including the Tasmania Online Internet service, and Tasmanian Communities Online which includes 64 Online Access Centres around the State;
• the Archives Office of Tasmania which is the repository for all Tasmanian State and Local Government records that are no longer of immediate administrative use, but which are considered worthy of permanent or long-term preservation. The Archives Office also houses a major collection of non-government records and manuscripts; and
• the Child Care Unit which is responsible for licensing and monitoring all child care services under the Child Care Act 2001.
The provision of these services is supported by the following organisational units which reflect some recent changes to the Department's organisational structure, particularly in the area of school education administration, to provide for an improved coordinated approach to service delivery, policy development and performance management:
• the Office of Curriculum Standards and Support, which is responsible for recommending curriculum for the pre-school years, and determining and supporting curriculum for the compulsory and post-compulsory years of schooling for government schools. The Office develops all curriculum support materials including e-learning resources. The Office is also responsible for issues affecting young children and their families and the Child Care Unit;
• the Office of Leadership and Learning (OLL) which provides professional learning and leadership support for professional staff in schools. The Office is also responsible for developing and establishing
Chapter 3: Education 43 policies and program support across the Department to address equity and access issues, particularly for identified equity groups and for all flexible learning services, including promoting the maximum use of Information and Communications Technology in education;
• the Office of Post-Compulsory Education and Training (OPCET) which is responsible for the provision of policy including resourcing and elements of service delivery underpinning post-compulsory education services including post-Year 10 schooling, vocational learning in schools, vocational education and training services, Adult Education, Youth Affairs and for the development of policy advice and for the growth, development, regulation and administration of the training system in Tasmania. OPCET is also responsible for supporting the Tasmanian Training Authority (TASTA) and its associated committees in its legislative role;
• the Office for Educational Review (OER) which is responsible for measuring and reporting on student performance and achievement across all learning areas, assessment and certification for students in the compulsory years of schooling and evaluation and review of educational programs as well as facilitating the collection, storage and utilisation of student and school data;
• the Tasmanian Qualifications Authority (TQA) which has combined the relevant functions of the former Tasmanian Secondary Assessment Board (TASSAB), the Universities Registration Council (URC) and the Tasmanian Accreditation and Recognition Committee (TAReC) into a new single statutory authority responsible for administration of post-compulsory qualifications;
• the Finance, Facilities and Business Strategy Branch which is responsible for managing the Department's current and emerging resource management needs. The Branch also has responsibility for providing support to colleges, schools and libraries in managing physical assets including land, buildings, plant and equipment, and for identifying and implementing opportunities arising through the use of information and communications technologies to enhance the effectiveness of education, training and information services delivered to the Tasmanian community;
• the Human Resources Management (HRM) Branch which is responsible for the creation and fostering of a work environment that enables people to achieve the Department's outcomes and meet the agreed expectations of management and employees through the provision of high quality, flexible HRM services including staff development programs for non-teachers, the management of HRM policies and practices and an industrial advice service; and
• the Information Management Branch (IMB) which is responsible for identifying and responding to the Department's emerging and future information management needs and for the provision of resources to all clients. The Branch's function is to provide the Department with an effective information management regime comprising information strategies, policies and procedures, systems and information technology infrastructure.
STRATEGIC FOCUS
The strategic focus of the Department is on the following achievements:
• providing quality education to all Tasmanian Government school students (supports the achievement of Tasmania Together Goals 1, 4, 7, 9 and 10 and Learning Together Goals 1, 2, 3 and 4) and improvements in the quality and outputs of education and information services across the State through the use of effective strategic planning, policy development and performance management (supports the
44 Chapter 3: Education achievement of Tasmania Together Goals 1, 4, 8, 9, 10 and 12 and Learning Together Goals 1 and 2) in which:
− all students in Tasmanian Government schools receive quality teaching leading to effective learning;
− there is a fair and just distribution of the benefits of schooling across all students and there is minimal difference in measurable outcomes between identified student groups;
− all students in Tasmanian Government schools receive teaching that appropriately utilises information and communications technology leading to more effective learning;
− parents of students participate in the schooling of their children, and the community and the general public are well informed on educational matters;
− all students participate fully in schooling and complete schooling until the end of Year 12 or the equivalent;
− students perform at nationally comparable achievement levels;
− there is improved access to child care services that meet State licensing guidelines and national standards for all parents and families; and
− policy information and advice continues to be provided across government agencies;
• facilitating lifelong learning opportunities including post-Year 10 schooling, formally recognised vocational education and training and non-accredited adult education in line with the post-compulsory education and training strategy, Tasmania: A State of Learning (supports the achievement of Tasmania Together Goals 7, 8, 17 and 18 and Learning Together Goals 2 and 4) through:
− improved opportunities for participation in post-compulsory education and training by all Tasmanians;
− increased integration of all sectors of education and training to meet the needs of Tasmanian industry and individual learners;
− the provision of education, employment and training opportunities for young people that are meaningful and encourage their participation and retention in the Tasmanian community;
− the provision of vocational education through the Institute of TAFE Tasmania to meet the needs of individual students and enterprises in Tasmania;
− the provision of adult education through Adult Education Tasmania;
− ensuring high quality training through appropriate regulation and registration;
− young people and the youth sector continuing to have access to government and improved decision-making processes around the State; and
− youth advisory services and Local Government continuing to provide programs, which more effectively meet young peoples' needs;
• providing statewide information, library and archival services (supports the achievement of Tasmania Together Goals 1, 4, 7, 12, 17 and 21 and Learning Together Goal 4) to support:
− an informed, empowered and technologically literate community of lifelong users of information and information technology;
Chapter 3: Education 45 − sustained economic development in the information age through community and individual innovation;
− equity of access to information and to resources for innovation; and
− the enhanced capacity and increased opportunity for the community to have access to and use its Government's records of continuing value and other Tasmanian archival material.
KEY STRATEGIES
The Department's key strategic priorities are embodied in three important documents: Tasmania Together; Learning Together; and Tasmania: A State of Learning, which underpin and provide a strategic framework for the Department's operations. Within this framework the following key strategies are in place: Accountability, Monitoring and Reporting
The Department has implemented a review and accountability framework to monitor and report against key performance indicators and benchmarks, which incorporates policy and planning for monitoring and reporting student assessment. The Department's Report Card is used to frame the Annual Report. This is a response to the emphasis on benchmarking and reporting contained in Tasmania Together (Goal 15) and Learning Together (Goal 1.5). Early Years
In recognition of the importance of the early years to successful learning experiences, the Department has implemented an early years strategy incorporating a whole-of-government approach. An important current focus is on policy direction relating to access, quality and availability of child care as indicated in Tasmania Together (Goal 1) and Learning Together (Goal 2.1). Literacy and Numeracy
The Department has a comprehensive literacy and numeracy strategy directed at improving student performance in literacy and numeracy at all stages of schooling and in post-compulsory years. This recognises the critical nature of success in literacy in building confidence and self-esteem (Learning Together 3.3) and reflects the priority on increasing literacy and numeracy performance to levels equal to national performance in Tasmania Together (Goal 4). Curriculum
The Department has a curriculum strategy that is focused on implementation of a new curriculum framework (Essential Learnings) for students from birth to Year 10 (Learning Together 2.1) and defining the broad outcomes that students in government schools and colleges should achieve by the end of Year 12 as the first stage of post-compulsory curriculum reform. This strategy takes account of the directions in Tasmania Together to reform curriculum coverage and support the achievement of the targets to increase the participation of students in post-compulsory years (Goal 4). Information and Communications Technology
The Department has a comprehensive strategy for the implementation of Information and Communication Technology (ICT) in teaching and learning and to improve the effectiveness and efficiency of departmental services through the use of information and communications technologies. This strategy reflects the priorities of Tasmania Together to maximise the opportunities available through information and other
46 Chapter 3: Education technologies (Goal 7) and Learning Together priorities to achieve an information-rich community with access to global and local resources (Goal 4.1). Community Relations and Partnerships
The Department has a strategy to increase the involvement of community members in decision-making and to increase the use of departmental facilities, as well as facilitate Local Government partnerships and partnerships with other key education and training providers. Elements of this strategy reflect the goals of Learning Together towards empowering schools to be flexible and form genuine partnerships with their communities (Learning Together 1.4), and the Tasmania Together goals relating to universal access to education services, and encouragement of Tasmanians to learn and develop new skills throughout their lives (Goals 1, 4 and 12). Post-Compulsory Education and Training Strategy (Tasmania : A State of Learning)
In December 2003, a major integrated strategic plan for post-compulsory education and vocational training, Tasmania: A State of Learning was launched. This is a strategy with numerous initiatives to provide a long-term strategic framework for post-compulsory education and training to:
• build a skilled workforce with the capacity to support business and industry in a growing economy;
• improve young peoples' participation in education and training beyond compulsory schooling leading to increases in retention rates;
• enable second chance learning opportunities for people of all ages; and
• create communities that value life-long learning.
This strategy will support the achievement of the goals of both Learning Together (Goals 2.2, 2.3, 2.4 and 2.5) and Tasmania Together to ensure that education and training provides skills in the workforce that will support our business and industry (Goals 4, 8 and 18). Attendance, Retention and Participation
In both the compulsory and post-compulsory sectors of education, policies and strategic plans have been developed that cover issues of attendance and retention of students in education and/or training. This responds to the focus in Learning Together to increase school attendance (Indicator 3.2) and Tasmania Together goals to improve retention and the participation of the Tasmanian community in education and training (Goals 4, 8 and 18). Supportive, Inclusive Education and Training
The Department has in place a strategy to ensure the provision of safe and supportive environments in all learning and child care institutions and libraries, and the provision of programs that are inclusive of all children, including those in specifically targeted equity groups. The strategy includes initiatives designed to address behaviour management in schools, anti-harassment and anti-discrimination initiatives in all departmental workplaces and promote a positive social environment in all institutions. This strategy will support the achievement of goals contributing to the creation of safe and inclusive learning environments described in Learning Together (Goals 3.1, 3.2 and 3.4) and Tasmania Together priorities to achieve vibrant communities where diversity of heritage and culture are acknowledged and valued (Goals 7, 9 and 10).
Chapter 3: Education 47 Youth
In accordance with the principles established in the State of our Youth Report, work on the development of a policy and strategic plan is well underway involving whole-of-government policy coordination, development of networks across the three spheres of government and involving consultations with the non-government sector and young people aged 12 to 25 years. The policy and plan under development will support the achievement of Tasmania Together goals relating to valued participation of young people in community and working life (Goals 8 and 15) and Learning Together (Goals 2 and 3). Public Information and its Preservation
The Department's strategy regarding public information (including Tasmania's documentary heritage) encompasses policies, plans and projects designed to enhance ready access to quality information as a vital resource in the pursuit of prosperity, high quality of life, lifelong learning, informed decision-making and the development of personal and community well being. This strategy supports the achievement of priorities of Tasmania Together that aim to value, protect and conserve our cultural heritage (Goal 21) and Learning Together (Goals 4.2 and 4.3). Capital Assets
The Department has a strategic policy and plan that focus on the acquisition, development, management, maintenance and disposal of the Department's assets. The strategy addresses both maintenance of current assets and also redevelopment of assets to meet changing service delivery requirements. This work is critical in meeting the goals of Learning Together (Goals 1.1, 2.2 and 4.1) that focus on the development of a world class education training and information system in Tasmania, and supports the achievement of Tasmania Together (Goals 1, 4, 17 and 18). Workforce Planning and Support
This strategy focuses on the development of policy and strategic plans for the management and planning of the Department's workforce. Given the importance of quality and motivated staff for the world-class education system that underpins Learning Together (Goals 1 and 5) and the centrality of the provision of high quality education to the vision of Tasmania Together (especially as articulated in Goals 1, 4, and 18), this work is seen to be of very high importance.
2004-05 MAJOR INITIATIVES
In support of the above strategies, the Department of Education is implementing the following major initiatives in 2004-05:
• commencement of the funding and implementation of the post-compulsory education and training strategy, Tasmania: A State of Learning, with $3.6 million in 2004-05 increasing to $7.9 million in 2007-08. This is an integrated strategy with numerous initiatives to provide a long-term strategic framework for post-compulsory education and training to:
− build a skilled workforce with the capacity to support business and industry in a growing economy;
− improve young peoples' participation in education and training beyond compulsory schooling leading to increases in retention rates;
− enable second chance learning opportunities for people of all ages; and
48 Chapter 3: Education − create communities that value life long learning;
• provision of funding for the following Social Policy Initiatives:
− $610 000 over three years for the Support, Advice and Mentoring (SAM) program which will provide intensive support to young people from broad-acre housing estates to continue with education or training. The program will initially be piloted in the Derwent District; and
− $300 000 per year to extend the successful Start@TAFE program to provide training opportunities for early school leavers and to support their broader needs. Students undertake a Certificate II in Workplace Practices and also undertake additional certificate level training that reflects their vocational interests and potential work options;
• provision of $6.4 million over two years to support students with high needs and challenging behaviour. This includes $1.3 million per year which will enable additional students with significant disabilities to be supported including provision for an increased number of students with autism spectrum disorder, as well as funds to offset the cost of replacing teacher aides who work with these students when the aides are sick. The remaining funds, $3.8 million over two years, will provide for staff working with these students to undertake specialised training to better equip them for the pressures and challenges associated with working with students with high needs and challenging behaviour and to improve the capacity of schools to provide inclusive, supportive education for all students;
• provision of $3.0 million over two years to support the Department's Information and Communications Technology (ICT) strategy. These funds will enable student assessment and reporting systems to be implemented including professional learning to support the implementation, to suit the new curriculum and also to commence the replacement of outdated systems used to support the delivery of education, training and information services to the Tasmanian community;
• provision of $58 500 per year additional assistance to Online Access Centres to provide increased operating hours at centres in isolated or socially disadvantaged locations;
• the second year of the four year $16.7 million program for information and communications technology in schools which provides funds for online learning and telecommunications and technical support services in schools through the Managed Networks Program;
• the second year of the two year $4.0 million capital program to provide additional child care places through the establishment of co-located centres within schools;
• the second year of a two year $1.0 million program to expand the State Library's lending collection through the purchase of books;
• the third year of a three year $900 000 program to continue the Business Skills Initiative program of training and development aimed at improving the skills of existing and prospective business managers in Tasmanian business enterprises;
• continuing the phased implementation of the Government's initiative to reduce class sizes in Prep and Year 1 with the provision of $1.3 million in 2004-05. This funding will provide schools with the resources to progressively reduce class sizes in Prep and Year 1 to 25 students or less;
• continue implementation of the new curriculum (Essential Learnings Framework) through provision of targeted professional learning and development and dissemination of assessable support materials, resources and electronic tools. All schools are included in the project for 2004; and
Chapter 3: Education 49 • providing $19.1 million in 2004-05 to redevelop and upgrade schools, TAFE facilities, libraries and student accommodation. This includes $500 000 to increase places and upgrade facilities at Springvale Hostel.
50 Chapter 3: Education SUMMARY AGENCY 2004-05 BUDGET INFORMATION
Financial Summary
Table 3.1: Summary Financial Information for the Department of Education 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 669 280) 693 108) 3.6) Other1 2 400) 4 750) 97.9) Other Revenue 137 513) 142 105) 3.3) TOTAL 809 193) 839 963) 3.8)
OPERATING EXPENSES Pre-Compulsory and Compulsory Education 490 488) 523 081) 6.6) Post-Compulsory Education and Training 162 294) 171 915) 5.9) Delivery of Information Services 25 940) 26 965) 4.0) Grants and Subsidies 125 060) 132 426) 5.9) Other2 6 200) 6 017) (3.0) TOTAL 809 982) 860 404) 6.2)
NET OPERATING RESULT (789) (20 441) ....)
Notes: 1. The variation reflects the inclusion of section 8A(2) of the Public Account Act 1986 carry forwards from the 2003-04 year as Revenue from Government in 2004-05. 2. This item represents the component of the Department's Capital Investment Program allocation that is not capitalised relating to the payment of allocations to the Institute of TAFE Tasmania and the allocation for building services maintenance.
Chapter 3: Education 51 Infrastructure Funds
Table 3.2: Infrastructure Funds Allocations for the Department of Education
2003-04 2004-05 Budget Budget Variation $'000 $'000 %
Economic and Social Infrastructure Fund (ESIF) Information and Communications Technology (ICT) Strategy1 2 420 4 420 82.6 Increasing Child Care Provisions in Schools2 2 000 2 000 .... Library Resources3 500 500 .... Students with Higher Needs4 .... 2 500 .... TOTAL ESIF 4 920 9 420 91.5
Social Infrastructure Fund (SIF) Managing and Retaining Secondary Students at School (MARSSS)5 800 700 (12.5) TAFE Business Skills Development Program6 300 300 .... TAFE Flexible Delivery 960 .... (100.0) Wellington Square Training Facility Development 640 .... (100.0) Community Renewal Program Guaranteeing Futures 450 .... (100.0) Expanding School-based Apprenticeships 90 .... (100.0) TOTAL SIF 3 240 1 000 (69.1)
TOTAL INFRASTRUCTURE FUND ALLOCATIONS 8 160 10 420 27.7
Notes: 1. A total of $19.7 million has been allocated over four years from 2003-04 to 2006-07 for this initiative. 2. A total of $4.0 million has been allocated over two years from 2003-04 to 2004-05 for this initiative. 3. A total of $1.0 million has been allocated over two years from 2003-04 to 2004-05 for this initiative. 4. A total of $5.0 million has been allocated over two years from 2004-05 to 2005-06 for this initiative. 5. A total of $1.8 million has been allocated over three years from 2002-03 to 2004-05 for this initiative. 6. A total of $900 000 has been allocated over three years from 2002-03 to 2004-05 for this initiative.
52 Chapter 3: Education DETAILED OUTPUT GROUP 2004-05 BUDGET INFORMATION
The individual Outputs of the Department of Education will be provided under the following Output Groups:
Output Group 1 Pre-Compulsory and Compulsory Education;
Output Group 2 Post-Compulsory Education and Training; and
Output Group 3 Public Information Services.
This represents a new Output structure for the Department with effect from the commencement of 2004-05. The new structure better reflects the provision of services by the Department and is also consistent with the format of the Department's Annual Report, thus providing an improved alignment between the Budget and the Annual Report. To provide comparative information, the 2003-04 Budget has been re-cast to reflect the new Output structure.
Output Group 1: Pre-Compulsory and Compulsory Education Description In School Education
The purpose of this Output is to provide a range of educational services that will help students develop intellectually, socially, morally, emotionally and physically in a stimulating, inclusive and supportive environment. These services are focused on the delivery of education to students in schools enrolled in classes up to Year 10. The services are provided in accordance with Tasmania Together, Learning Together and The Adelaide Declaration on National Goals for Schooling in the 21st Century and the values and purposes of the Essential Learnings Curriculum Framework and the Supportive, Inclusive Communities Policy Framework. Specific emphasis is given to improving learning programs in schools so that they provide a world-class education and their students acquire the attitudes, skills and knowledge needed to live in a rapidly changing society and will be able to contribute to the social and economic well being of Tasmania.
It is acknowledged that parents have a unique role to play in the education of their children. Accordingly, every attempt is made to ensure that parents and teachers work in partnership and that parents are involved in the decision making process about their children's education. Schools Delivery Support
This Output provides for the management of the support services which are provided to both schools and colleges. Special provision is made for students who have special or additional learning needs. This takes the form of additional support that is provided both on and off school campuses principally by guidance officers, social workers, speech pathologists and support teachers.
Chapter 3: Education 53 Curriculum Standards
This Output encompasses responsibility for recommending curriculum for the pre-school years and determining and supporting curriculum for the compulsory and post-compulsory years of schooling for government schools within which schools seek to meet the needs of all students. The Office of Curriculum Standards and Support develops all curriculum support materials including e-learning resources. The Office is also responsible for issues affecting young children and their families and the Child Care Unit. It also provides policy, planning and strategic advice to the Minister on school education. The Output also includes research, information, program development and support for educational initiatives. Educational Review
This Output provides statewide programs for the monitoring and measurement of student performance and levels of achievement in literacy and numeracy and the assessment and certification for students in the compulsory years of schooling. The Output is directed towards the review of departmental policies and programs and the monitoring and reporting of educational accountability information for specific purpose programs. Internal school reviews in partnership with district superintendents, principals and the community are also provided under this Output. Leadership and Learning
This Output provides professional learning and leadership support for professional staff in schools. The Output is also directed to developing and establishing policies and program support across the Department to address equity and access issues, particularly for identified equity groups including students who:
• have a disability or learning difficulty;
• are an Aboriginal or Torres Strait Islander;
• have a language background other than English;
• experience poverty or low socio-economic status;
• are at risk of leaving school early;
• are geographically isolated; or
• are recognised as being gifted and talented.
In addition, the Output provides all flexible learning services including promoting the maximum use of information and communications technology in education. Child Care
Child care services are licensed and monitored by the Department of Education under Part 6 of the Child Care Act 2001. Assistance and advice is given to develop child care services and funds are provided to non-government organisations as a contribution towards operating expenses and capital upgrades through the Child Care grants program. Grants and Financial Assistance
This Output contains the following components which were previously included in the Administered Items section. In accordance with Australian Accounting Standards, these items are considered to be controlled by the Department and are therefore now included under the Department's Output Groups.
• Bursaries, Allowances and Loan Issue Supplies
54 Chapter 3: Education This includes the operation of the Student Assistance Scheme, the payment of bursaries and coverage of costs for the supply of spectacles to students whose parents are unable to provide them.
• Child Care Grants
This is a grant program with funds provided to meet commitments under the National Child Care Strategy and the objectives of the State Child Care Grants Program.
• Sundry Grants, Fees and Scholarships
This grant program provides for grants and fees to be paid to various organisations for educational purposes.
The Department's Outcomes to which this Output Group contributes are:
• all students in Tasmanian Government schools receive quality teaching leading to effective learning;
• all students in Tasmanian Government schools receive teaching that appropriately utilises information and communications technology leading to more effective learning;
• a fair and just distribution of the benefits of schooling across all students leading to minimal difference in measurable outcomes between identified student groups;
• all students participate fully in schooling and complete schooling until the end of Year 12 or the equivalent;
• students perform at nationally comparable achievement levels;
• parents of students continue to participate in the schooling of their children, and the community and the general public continue to be well informed on educational matters and involved in their school communities; and
• improved access to child care services that meet State licensing guidelines and national standards for all parents, carers and families.
Chapter 3: Education 55 Table 3.3: Summary Financial Information - Output Group 1 2003-04) 2004-05) Pre-Compulsory and Compulsory Education Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 444 442) 458 046) 3.1) Other1 ....) 2 805) ....) Investment Income2 1 786) 1 600) (10.4) Grants 4 456) 4 379) (1.7) Sales of Goods and Services 7 474) 6 846) (8.4) Other Revenue 21 916) 22 706) 3.6) TOTAL 480 074) 496 382) 3.4)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 313 790) 334 387) 6.6) Other Employee Related Expenses3 31 220) 34 540) 10.6) Superannuation 33 770) 34 245) 1.4) Depreciation and Amortisation 15 670) 15 670) ....) Grants and Transfer Payments 6 019) 6 019) ....) Supplies and Consumables Consultants 608) 577) (5.1) Maintenance and Property Services4 4 464) 6 066) 35.9) Communications 1 389) 1 389) ....) Information Technology 12 039) 11 870) (1.4) Travel and Transport 2 017) 2 021) 0.2) Other Supplies and Consumables5 69 502) 76 297) 9.8) TOTAL 490 488) 523 081) 6.6)
EXPENSE BY OUTPUT 1.1 In School Education 460 232) 490 594) 6.6) 1.2 Schools Delivery Support 13 216) 13 343) 1.0) 1.3 Curriculum Standards 4 867) 4 784) (1.7) 1.4 Educational Review6 833) 934) 12.1) 1.5 Leadership and Learning7 4 344) 6 402) 47.4) 1.6 Child Care 977) 1 005) 2.9) 1.7 Grants and Financial Assistance 6 019) 6 019) ....) TOTAL 490 488) 523 081) 6.6)
Notes: 1. The variation reflects the inclusion of section 8A(2) of the Public Account Act 1986 carry forwards from the 2003-04 year as Revenue from Government in 2004-05. 2. The variation reflects lower than expected interest income received in respect of accounts within the Special Deposits and Trust Fund primarily due to the expenditure of Commonwealth Telstra Bonus Funds. 3. The variation reflects increased salary costs and an increase in the provision for Long Service Leave.
56 Chapter 3: Education 4. The variation reflects the inclusion of rates expense as a result of the State and Local Government Financial Reforms. 5. The increased expenditure primarily relates to a higher level of expenditure associated with Commonwealth and other Specific Purpose Projects in 2004-05, for example Commonwealth funded Literacy programs and the Capital Investment Program – Essential Maintenance. 6. The increased expenditure is primarily associated with Specific Purpose Projects in 2004-05. 7. The increased expenditure primarily reflects the inclusion of Commonwealth funded Literacy programs.
Major Issues and Initiatives for 2004-05
The major focus of activity for this Output Group for 2004-05 is the continuing emphasis on improved student learning outcomes under the overarching goal of a world-class education system. This includes:
• provision of $1.2 million in 2004-05 increasing to $2.5 million in 2007-08 under the Tasmania: A State of Learning Strategy for the following initiatives:
− the continuation of Youth Learning Officers (YLOs), a vital component of the Guaranteeing Futures Initiative which was commenced with funding through the Social Infrastructure Fund in 2002-03. YLOs work with students who have disengaged, or are at risk of disengaging from education to assist them to participate in a suitable education or training program;
− the provision of Pathways Planning and Transition Support to assist young people in high schools in making education and training choices beyond Year 10. Teams will be progressively established to work with students, teachers, parents and others to assist young people choose and navigate their individual pathways, commencing from Year 8; and
− the progressive establishment of Area Taskforces to foster responsive and coordinated service delivery partnerships for young Tasmanians as they move from school to further education, training and employment. The taskforces will involve a range of stakeholders including young people, parents, schools and colleges, TAFE, private VET providers, the University, youth service providers, employers, councils, government agencies and community organisations;
• provision of $610 000 over three years for the Support, Advice and Mentoring (SAM) program which will provide intensive support to young people from broad-acre housing estates to continue with education or training. The program will initially be piloted in the Derwent District;
• provision of $1.0 million for targeted programs to improve Year 7 literacy and numeracy levels;
• provision of $6.4 million over two years to support students with high needs and challenging behaviour. This includes $1.3 million per year which will enable additional students with significant disabilities to be supported including provision for an increased number of students with autism spectrum disorder as well as funds to offset the cost of replacing teacher aides who work with these students when the aides are sick. The remaining funds, $3.8 million over two years will provide for staff working with these students to undertake specialised training to better equip them for the pressures and challenges associated with working with students with high needs and challenging behaviour and to improve the capacity of schools to provide inclusive, supportive education for all students;
• provision of $2.0 million over two years to support the Department's Information and Communications Technology (ICT) strategy. These funds will enable student assessment and reporting systems to be implemented, including professional learning to support the implementation, to suit the new curriculum and also to commence the replacement of outdated systems used to support the delivery of education, training and information services to the Tasmanian community;
Chapter 3: Education 57 • provision of $100 000 to expand the provision of assistance to families experiencing poverty, and families who are refugees, by the supply of school uniforms and to supplement the spectacles assistance scheme which provides spectacles to students participating in the Student Assistance Scheme (STAS) who require them;
• the second year of the four year $16.7 million program for information and communications technology in schools which provides funds for online learning and telecommunications and technical support services in schools through the Managed Networks Program;
• the second year of the two year $4.0 million capital program to provide additional child care places through the establishment of child care centres co-located at primary schools;
• continuing the phased implementation of the Government's initiative to reduce class sizes in Prep and Year 1 with the provision of $1.3 million in 2004-05. This funding will provide schools with the resources to progressively reduce class sizes in Prep and Year 1 to 25 students or less;
• continuing implementation of the new curriculum (Essential Learning Framework) through provision of targeted professional learning and development and distribution of assessable support materials, resources and electronic tools;
• developing assessment guidelines and a quality management process for issuing a certificate of achievement for Year 10 students that will provide a simple and meaningful record of what students have achieved at the end of compulsory schooling;
• implementing a model for improving school effectiveness that will meet demands for greater performance accountability and improve the systemic support to schools that are under-achieving including a new leadership development program;
• developing a strategy for implementation of recommendations from the Review of Services for Students with special educational and/or additional needs;
• working with the Faculty of Education of the University of Tasmania to improve school experience for pre-service teachers and improve recruitment strategies and availability of flexible courses in key teaching areas;
• implementing the Supportive School Communities Policy Framework by offering targeted professional learning in inclusive practice for school leaders and teachers, to improve learning outcomes of students with disabilities and other special educational needs, including students from culturally and linguistically diverse backgrounds and to ensure compliance with the Disability Discrimination Act Education Standards 1992;
• implementing an evidence based, coordinated program to develop and promote the resilience, health and well being of young Tasmanians;
• developing and disseminating guidelines that clarify the requirements of the amended Education Act 1994 with respect to religious instruction in state schools and the operation of School Associations;
• commencing the implementation of the new Aboriginal Education Strategic Plan 2004-2008, maana, the aim of which is to further improve the educational outcomes of Aboriginal students in Tasmanian schools with an increased focus on programs to improve the school readiness of young Aboriginal children and to enhance the relationships between schools and the Aboriginal community (maana is a palawa word for 'further');
58 Chapter 3: Education • implementing licensing for all Family Day Care Schemes and Outside School Hours Care Services (OSHCS) based on new standards under the recent Child Care Legislation;
• conducting a forum and series of workshops to provide professional development and training for OSHCS staff and committee members that will support the licensing of OSHC services;
• completing pilot Strong Start programs to support parents of young children in the Derwent Valley and West Tamar regions and implement recommendations from the pilot projects in relation to additional services; and
• continuing the child care scholarship program to provide scholarships for training in order to meet the increased demand for trained staff.
Chapter 3: Education 59 Table 3.4: Performance Information – Output Group 1 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Literacy rates against national benchmarks % of students 1 Year 3 achieving benchmark 95.1 96.3 97 98 Literacy rates against national benchmarks % of students 1 Year 5 achieving benchmark 94.4 96.3 90 90 Numeracy rates against national benchmarks % of students 2 Year 3 achieving benchmark 95.6 94.1 96.5 98 Numeracy rates against national benchmarks % of students 2 Year 5 achieving benchmark 91.7 89.2 95 98 Child care services that meet licensing standards3 Number 130 132 130 132 Percentage of teaching staff who have received professional development specifically related to their role as teachers of indigenous studies % 43 34.6 45 45 Percentage of schools integrating aboriginal perspectives throughout all relevant areas of the curriculum % 2975.2 50 80
Sources: ABS, Schools Australia, 4221.0. National Report on Schooling in Australia, www.curriculum.edu.au/mctyapdf/2000_benchmarks.pdf. The Department of Education's Corporate Report Data Collection 2002. Notes: 1. Targets for Literacy Rates against National Benchmarks reflect progress required to meet Tasmania Together targets by 2005. 2. Targets for Numeracy Rates for Years 3 and 5 have been set by the Tasmanian Literacy and Numeracy Consultative Committee. 3. Child care services licensed under new standards from 2001-02. After the eighteen-month transition period allowed under the Child Care Act 2001 following its proclamation, over 90 new services will be licensed. This should allow new targets and performance measures to be identified during 2004-05.
Output Group 2: Post-Compulsory Education and Training Description
The purpose of this Output Group is to facilitate the provision of post-compulsory education and formally recognised Vocational Education and Training (VET) by registered training providers together with non-accredited adult education.
The Outputs in this Group directly address the long-term vision and goals set out in Tasmania Together, Learning Together, Tasmania: A State of Learning, as well as the Australian National Training Authority Agreement and agreed national strategies for vocational education and training including, Bridging Pathways, Partners in a Learning Culture and the Industry Development Plan.
60 Chapter 3: Education Provision of VET by TAFE Tasmania under Agreement
The Institute of TAFE Tasmania delivers VET to both full time and part time students. Training is delivered at TAFE facilities in the workplace, at home or a combination of these. Training arrangements are designed to be flexible, enabling individual student and enterprise needs to be met.
Training is focused on developing vocational skills and knowledge across a wide range of occupations and industries against a profile consistent with the Tasmanian Vocational Education and Training Strategy and as agreed through annual TAFE Purchase agreements. Provision of VET – Apprentices, Trainees and Competitive Bids
This service includes provision of VET, other than that provided by the Institute of TAFE Tasmania under agreement and includes VET provided through competitive bidding and user choice. Training under the competitive bidding program is open to competition between providers, as is training under user choice where choice of provider is available. Post-Compulsory In School Education
The purpose of this Output is to provide a range of educational services that will help post-Year 10 students develop intellectually, socially, morally, emotionally and physically in a stimulating, inclusive and supportive environment. These services are focused on the delivery of education to students in schools and colleges. The services are provided in accordance with Tasmania Together, Learning Together and The Adelaide Declaration on National Goals for Schooling in the 21st Century. Specific emphasis is given to improving learning programs in schools and colleges so that they provide a world class education and their students acquire the attitudes, skills and knowledge needed to live in a rapidly changing society and will be able to contribute to the social and economic well being of Tasmania.
It is acknowledged that parents have a unique role to play in the education of their children. Accordingly, every attempt is made to ensure that parents and teachers work in partnership and that parents are involved in the decision making process about their children's education. Post-Compulsory Education and Training Regulation and Support
The Office of Post-Compulsory Education and Training (OPCET) is responsible for the support of the Tasmanian Training Authority (TASTA) and associated committees and the administration of the Vocational Education and Training Act 1994. This Output includes:
• planning and purchasing vocational education and training services for Tasmania from the Institute of TAFE Tasmania and private providers;
• development of advice on national policy for vocational education and training;
• development of industry investment in training through industry advisory mechanisms and direct program delivery; and
• development, regulation and administration of the training system in Tasmania.
A number of regulatory and administrative functions involved with the Vocational Education and Training Sector are exercised by the Tasmanian Qualifications Authority. Tasmanian Qualifications Authority (TQA)
The Tasmanian Qualifications Authority has combined the relevant functions of the former Tasmanian Secondary Assessment Board (TASSAB), the Universities Registration Council (URC) and the Tasmanian
Chapter 3: Education 61 Accreditation and Recognition Committee (TAReC) into a new single statutory authority responsible for administration of post-compulsory qualifications. Youth Affairs
The Office of Youth Affairs provides effective coordination and dissemination of youth policies, programs and information across the three spheres of government and relevant non-government youth service providers, together with improved access for young people to government and decision making. Adult Education
This Output enables the provision of the Adult Education programs which provide a diverse array of learning activities throughout the State for adults to participate in. Responsibility for Adult Education has recently moved from the Institute of TAFE Tasmania to the Department of Education. Grants and Financial Assistance
This Output contains the following components which were previously included in the Administered Items section. In accordance with Australian Accounting Standards, these items are considered to be controlled by the Department and are therefore now included under the Department's Output Groups.
• Senior Secondary Students: Living Away From Home Allowance
This grant program provides an allowance of $917 per academic year to approved Year 11 and 12 students, who are residents of Tasmania to assist with accommodation expenses where students are required to find alternative accommodation in order to undertake senior secondary studies.
• Bursaries, Allowances and Loan Issue Supplies
This grant program includes the operation of the Student Assistance Scheme, which provides for the payment of bursaries and student assistance payments, together with costs for the supply of spectacles to students whose parents are unable to provide them.
• Sundry Grants, Fees and Scholarships
This grant program provides for grants and fees to be paid to various organisations for educational purposes.
• Subsidies: Apprentices and Trainees
This grant program subsidises the accommodation, living and travel costs of apprentices and trainees attending training courses provided by accredited trainers in Tasmania and interstate, and other sundry expenses directly associated with apprenticeship and traineeships generally.
• Group Schemes for Apprentices and Trainees
Costs associated with the management of group apprenticeship and traineeship schemes are funded on a dollar for dollar basis with the Commonwealth Government.
• Industry Training Advice
This program covers costs associated with the provision of advice from industry bodies in relation to training issues.
62 Chapter 3: Education • Youth Network of Tasmania (YNOT): Grant
YNOT is the Tasmanian non-government peak youth body. It aims to facilitate the participation of young people and community based service providers in the identification of youth issues and the development of strategies and policies to address these issues. YNOTs functions include research, consultation and policy analysis on youth issues and the dissemination of information to the youth sector and the wider community. YNOT also provides representation and advocacy on issues relating to young people in a broad range of regional, statewide and national forums, both government and non-government based.
• Youth Services
This grant program was developed to assist with the implementation of the Government's Youth Policy initiative. There are two components to the program: the establishment of a variety of additional youth advisory services and the provision of seed funding for Local Government youth services to be offered by small Councils.
The Department's Outcomes to which this Output Group contributes are:
• all students in Tasmanian Government schools receive quality teaching leading to effective learning;
• that all students participate fully in schooling and complete schooling until the end of Year 12 or the equivalent;
• that students perform at nationally comparable achievement levels;
• that all students in Tasmanian Government schools continue to receive teaching that appropriately utilises information and communications technology leading to more effective learning;
• there is a fair and just distribution of the benefits of schooling across all students and minimal difference in measurable outcomes between identified student groups;
• parents of students continue to participate in the schooling of their children and the community and the general public continue to be well informed on educational matters and involved in their school communities;
• that young people and the youth sector will continue to have access to government and improved decision making processes around the State;
• youth policy information and advice will continue to be provided across government agencies;
• youth advisory services and Local Government will continue to provide programs which more effectively meet young peoples' needs;
• provision of a quality assurance and regulatory framework for vocational education and training, involving:
− registration of training providers;
− accreditation of courses; and
− recognition of overseas qualifications;
• approval and monitoring of apprentice and trainee training contracts; and
• management of the purchase of vocational education and training from registered training organisations to ensure that:
Chapter 3: Education 63 − the number of students who participate in post-compulsory education and training increases;
− partnership arrangements are developed between schools, colleges and the Institute of TAFE Tasmania; and
− training provision is aligned to Tasmania's Industry Development Plan and Industry identified needs.
Table 3.5: Summary Financial Information - Output Group 2 2003-04) 2004-05) Post-Compulsory Education and Training Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 154 104) 158 972) 3.2) Other1 ....) 495) ....) Grants2 6 155) 3 261) (47.0) Sales of Goods and Services3 2 784) 4 716) 69.4) TOTAL 163 043) 167 444) 2.7)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 113 678) 118 188) 4.0) Other Employee Related Expenses4 5 605) 6 340) 13.1) Superannuation 6 609) 6 662) 0.8) Depreciation and Amortisation 29) 29) ....) Grants and Transfer Payments 3 205) 3 210) 0.2) Supplies and Consumables Consultants 135) 129) (4.4) Maintenance and Property Services5 1 633) 2 596) 59.0) Communications 236) 236) ....) Information Technology 1 512) 1 570) 3.8 Travel and Transport 349) 349) ....) Other Supplies and Consumables6 29 303) 32 606) 11.3) TOTAL 162 294) 171 915) 5.9)
EXPENSE BY OUTPUT 2.1 Provision of VET by TAFE Tasmania under Agreement7 54 789) 56 516) 3.2) 2.2 Provision of VET- Apprentices, Trainees and Competitive Bids8 19 443) 21 836) 12.3) 2.3 Post-Compulsory In School Education 73 892) 75 725) 2.5) 2.4 Post-Compulsory Education and Training, Regulation and Support 7 392) 7 117) (3.7) 2.5 Tasmanian Qualifications Authority 2 874) 2 999) 4.3) 2.6 Youth Affairs 379) 392) 3.4) 2.7 Adult Education9 ....) 3 800) ....) 2.8 Grants and Financial Assistance 3 525) 3 530) 0.1) TOTAL 162 294) 171 915) 5.9)
64 Chapter 3: Education Notes: 1. The variation reflects the inclusion of section 8A(2) of the Public Account Act 1986 carry forwards from the 2003-04 year as Revenue from Government in 2004-05. 2. The decrease reflects the conclusion of various programs funded by the Commonwealth, primarily the Environmental Tourism program. 3. The increase primarily reflects the inclusion of Adult Education fees following the transfer of this function to the Department. 4. The variation reflects increased salary costs and an increase in the provision for Long Service Leave. 5. The variation reflects the inclusion of rates expense as a result of the State and Local Government Financial Reforms. 6. The variation primarily reflects additional expenditure associated with Specific Purpose Projects and the inclusion of Adult Education expenditure following the transfer of this function to the Department. 7. This Output includes additional funding allocations under the Tasmania: A State of Learning strategy for 2004-05 of $900 000 as well as indexation adjustments for 2004-05. An amount of $1.6 million has been transferred to Output 2.7 for 2004-05. However, a corresponding amount has not been transferred for 2003-04 which has the effect of discounting the percentage increase to 3.2 per cent. The comparative increase would be 6 per cent for this Output. 8. The variation primarily reflects expenditure associated with Specific Purpose Projects including the Environmental Tourism program and the Industry Technology Training Program. 9. This item reflects the transfer of financial operations for Adult Education from TAFE to the Department effective 1 July 2005.
Major Issues and Initiatives for 2004-05
The major issues and initiatives for this Output Group include:
• provision of $2.4 million in 2004-05, increasing to $5.4 million in 2007-08, under the Post-Compulsory Education and Training Strategy, Tasmania: A State of Learning, for the following initiatives:
− $900 000 in 2004-05, increasing to $1.6 million in 2006-07, to TAFE Tasmania to increase the overall participation by Tasmanians in training to provide skilled workers required by industry to meet increased demand particularly in construction, hospitality and tourism, human services, rural industries, cultural arts industry and community development including increasing participation of women, targeted programs for long-term unemployed men, literacy and general education;
− $528 000 in 2004-05, increasing to $564 000 in 2007-08, for the continuation of the Vocational Education and Learning (VEL) Unit. The VEL unit provides support and advice to schools and colleges in the implementation and development of enterprise and vocational learning, career and work education, community/business partnerships and VET in schools;
− $739 000 in 2004-05 to undertake a Post-Year 10 Curriculum Review aimed at developing a preferred model for post-Year 10 curriculum for students in government schools and colleges, through extensive consultation and professional learning activities with teachers and the wider government school community. This review will enable the government school system to consider internal issues and reach consensus on directions for the government system prior to a broader Post-Year 10 Curriculum Review involving all sectors and stakeholders;
− the forward commitment of $3.0 million in 2007-08 to accommodate the increased costs of requiring participation in education and training beyond Year 10 following the implementation of the new legislation. Additional funds will be allocated commencing in 2005-06 as work will commence with the first group of students affected by the new legislation in 2005 when they are in Year 8;
− $205 000 in 2004-05, increasing to $250 000 in 2007-08, to:
− provide flexible learning options to cater for young Tasmanians requiring different forms of learning activities or higher levels of support;
Chapter 3: Education 65 − bring together youth services to address the needs of young Tasmanians;
− support learners through mentoring;
− support family literacy initiatives;
− boost community education provision; and
− promote learning opportunities through technology;
• provision of $300 000 per year for extending the successful Start@TAFE program to provide training opportunities for early school leavers and to support their broader needs;
• provision of $1.0 million over two years to support the Department's Information and Communications Technology (ICT) strategy. These funds will enable accreditation and certification systems for post-compulsory students to be implemented;
• the third year of a three year $900 000 program to continue the Business Skills Initiative program of training and development aimed at improving the skills of existing and prospective business managers in Tasmanian business enterprises;
• establishment of a joint Commonwealth/State Government taskforce of adult literacy to coordinate current and new joint initiatives aimed at ensuring adult Tasmanians have access to quality literacy support;
• initiation, through the State Government's Partnership Agreement with the University of Tasmania, of a joint project to undertake long-term workforce planning and research. The project will enhance decision making relating to the State's skills base through mechanisms such as the sharing and coordination of information routinely gathered by Government agencies and the University;
• provision of a workforce development fund to encourage employers to integrate training and skills development with their business planning;
• development of a Business and Education Partnership between the Department of Education and the Tasmanian Chamber of Commerce and Industry to address the needs of young Tasmanians in their school to work transitions;
• provision of programs to develop local community leaders' skills in areas such as mentoring, negotiation, information management and advocacy. These programs will also raise local leaders' understanding of democratic processes and their capacity to contribute to these;
• establishment of a new peak body for post-Year 10 education and training. This body will subsume current TASTA functions and assume new policy responsibilities relating to adult education, vocational education and training, and linkages with higher education and senior secondary education in Tasmania;
• improving opportunities for people from equity target groups to access, participate and achieve in vocational education and training by continuing to implement national training strategies at the State level. These include strategies to support Aboriginal people, women, people with disabilities and prisoners;
• a joint project with Northern People Integration (Disability Support program) to encourage people with disabilities into Adult Education programs will be extended, with similar projects commencing in other regions to be investigated;
66 Chapter 3: Education • the eco-tourism study immersion program pilot, focussing on uniquely Tasmanian flora and fauna of Cradle Mountain, the West Coast and the Bass Strait Islands, will be trialled this year; and
• finalising a Year 12 completion standard and certificate that will articulate students' skills and capabilities, including their Vocational Education and Training (VET), work-related and other skills and attributes at the end of Year 12.
Details on the financial operations of TAFE Tasmania are detailed in Chapter 19 of this Budget Paper.
Table 3.6: Performance Information – Output Group 2 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Apparent retention rate Years 7 – 121 % 68.7 72.6 73 75 Apparent retention rate Years 10 – 121 % 70.5 75 77 80 Proportion of people in full or part time education or training1 % 17.617.1 17.8 17.0 Proportion of people aged 20 to 24 in full or part time education or training1,3 % 28.0 28.2 34.5 35.0 Percentage of 15 to 19 year-olds not employed, not at school and not in full time tertiary education1 % 10.710.3 10.0 9.5 Training Package Implementation % of Training Packages Implemented 71 83 85 85 Hours of VET Activity2,4 Hours ('000) 5 550 5 655 5 096 5 096 Numbers of apprentices and trainees in training Number 12 000 12 700 13 100 13 100 Percentage of Councils with youth advisory committees1 % 5879 63 80
Sources: ABS, Transition from Education to Work Survey. ABS Transition from Education to Work Survey (unpublished data). The Department of Education data. Australian National Training Authority (ANTA) Agreement. NCVER www.ncver.edu.au/statistics/aats/quarter/list.htm. Notes: 1. Targets reflect progress required to meet Tasmania Together targets by 2005. In some instances current performance is ahead of 2005 target. 2. Targets are agreed with Commonwealth Government but have been exceeded in the 2001-02 and 2002-03 actuals. 3. ABS data revised since 2003-04 Budget Paper preparation. 4. Data as at 30 June 2003.
Output Group 3: Public Information Services Description
The purpose of this Output Group is to provide statewide library and information services and archival services in accordance with the goals of Tasmania Together and Learning Together. The Department's Outcomes to which this Output Group contributes are:
Chapter 3: Education 67 • an informed, empowered and technologically literate community of lifelong users of information and information technology;
• an improved quality of life for all Tasmanians and a culturally rich community;
• sustained economic development in the information age through community and individual innovation;
• equity of access to information and to resources for innovation; and
• the enhanced capacity and increased opportunity for the community to have access to and use its Government's records of continuing value and other Tasmanian archival material.
The State Library of Tasmania has key responsibility for a number of initiatives in Learning Together and will have input into a number of other initiatives. The major Learning Together initiatives the Library has responsibility for include:
• developing a strategic policy, to cover issues in relation to access to information, use of information and information content;
• publishing online heritage resources and developing other resources that help people to interpret heritage and archival material, ensure preservation of documents and long-term electronic access to them;
• helping individuals and organisations to publish local history and community information and helping them keep records in a form that makes them easily accessed; and
• facilitating access to government information at Commonwealth, State and local levels.
The Archives Office of Tasmania is collaborating with the State Library on a number of these initiatives and has key responsibility for the following Learning Together initiatives:
• providing electronic access to archival resources and information about the State's archives; and
• sharing the conservation facilities of Tasmania's cultural institutions.
The Tasmania Together vision and goals contain a number of goals where the State Library and the Archives Office will be actively involved in strategies to meet these goals. These include:
• value, protect and conserve our natural and cultural heritage;
• foster and value vibrant and diverse rural, regional and remote communities that are connected to each other and the rest of the world; and
• have Tasmania recognised nationally and internationally for its innovation, pursuit of excellence and creativity in arts and culture.
68 Chapter 3: Education Table 3.7: Summary Financial Information - Output Group 3 2003-04) 2004-05) Public Information Services Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 22 954) 23 308) 1.5) Grants 4) 2) (50.0) Sales of Goods and Services1 1 183) 1 335) 12.8) TOTAL 24 141) 24 645) 2.1)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 13 152) 13 676) 4.0) Other Employee Related Expenses2 1 296) 1 429) 10.3) Superannuation 1 419) 1 418) (0.1) Depreciation and Amortisation 2 192) 2 192) ....) Grants and Transfer Payments 905) 905) ....) Supplies and Consumables Consultants 7) 5) (28.6) Maintenance and Property Services3 1 202) 1 375) 14.4) Communications 439) 440) 0.2) Information Technology 754) 754) ....) Travel and Transport 171) 171) ....) Other Supplies and Consumables 4 403) 4 600) 4.5) TOTAL 25 940) 26 965) 4.0)
EXPENSE BY OUTPUT 3.1 Public Library and Information Services 22 341) 23 166) 3.7) 3.2 Archival and Records Management Services 1 721) 1 799) 4.5) 3.3 Online Access Centres 1 878) 2 000) 6.5) TOTAL 25 940) 26 965) 4.0)
Notes: 1. The increase reflects additional funding generated for programs funded through sources other than the Consolidated Fund such as the Education Software Acquisition Program. 2. The variation reflects increased salary costs and an increase in the provision for Long Service Leave. 3. The variation reflects the inclusion of rates expense as a result of the State and Local Government Financial Reforms.
Major Issues and Initiatives for 2004-05
The major issues and initiatives for this Output Group in 2004-05 include:
• the second year of a two year $1.0 million program to expand the State Library's lending collection through the purchase of books and other high-demand library resources;
Chapter 3: Education 69 • provision of $58 500 per year additional assistance to Online Access Centres to provide increased operating hours at centres in isolated or socially disadvantaged locations;
• expanding the provision of resources statewide which are available as part of the Babies who Read, Succeed library program which supports parents and carers in reading to their pre-school children;
• development of an email notification service to members of the community to alert them of new items added to the State Library lending collections;
• digitising three significant Tasmanian historical publications: The Cyclopedia of Tasmania (1900), Tasmanian Post Office Directory (1904) and Bailliere's Gazetteer of Tasmania (1877) through a cooperative venture with a commercial publisher;
• establishing a specifically designed youth space as part of the building extension at Kingston Library;
• continuing a program to integrate libraries as part of community learning centres in their localities in partnership with other lifelong learning providers. This will occur for Oatlands Library during 2004-05;
• conduct an integrated promotional program to raise awareness of the importance and value of information in relation to the Informing Tasmanians policy framework;
• the Archives Office of Tasmania will actively contribute to the 'Digital Recordkeeping Initiative' (DRI), a collaborative project of all Australian and New Zealand public records institutions to establish a common set of strategies for enabling the long-term retention and management of digital records; and
• in collaboration with the National Archives of Australia, the Archives Office of Tasmania will establish and develop a 'Joint Consultative Forum' as a mechanism for communication and collaboration with the stakeholders of Tasmanian archival institutions.
Table 3.8: Performance Information – Output Group 3 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Number of Tasmanian publications added to the State record1,2 Number 17 599 19 027 11 000 12 000 Percentage of significant items conserved1,2 % 60 65 65 68 Number of heritage documents and artefacts publicly available in digital format1,2 Number 6 181 8 743 5 000 10 000 Information enquiries1, 2 Number 695 995 701 271 650 000 705 000 Visits (in person) Number 2 841 169 2 928 059 2 900 000 2 950 000 Library items borrowed1 Number 4 486 943 4 528 392 4 600 000 4 600 000 Usage of key State Library of Tasmania web resources3 Number n.a. 1 278 997 1 750 000 1 800 000
Notes: 1. Performance indicator methodology has been revised since the 2002-03 Budget. 2. Targets reflect progress required to meet Tasmania Together targets by 2005, but represent Department of Education data. 3. New measure reflecting changing practice.
70 Chapter 3: Education Administered Items Grants and Subsidies
Table 3.9 provides a summary of Grants and Subsidies paid by the Department of Education. A brief description of each payment follows the Table. In accordance with Australian Accounting Standards, certain items previously classified as Administered Items are now considered to be controlled by the Department and are now included in the Department's Output Groups.
Table 3.9: Grants and Subsidies Financial Summary 2003-04 2004-05 Budget) Budget) Variation) $'000) $'000) %) REVENUE Revenue from Government Annual Appropriation 33 310) 35 166) 5.5) Other Revenue 91 755) 97 260) 5.9) TOTAL 125 065) 132 426) 5.8)
EXPENSES Accommodation Allowances for Tertiary Students 1 445) 1 445) ....) Commonwealth Grants to Non-Government Schools 91 755) 97 260) 5.9) Non-Government Schools: Capital Assistance 1 000) 1 000) ....) Non-Government Schools: Grants 30 474) 32 335) 6.1) Non-Government Schools: Student Assistance 386) 386) ....) TOTAL 125 060) 132 426) 5.8)
Accommodation Allowances for Tertiary Students An allowance is paid to approved tertiary students who are residents of Tasmania to assist with accommodation expenses where they are required to live away from their primary place of residence to enable them to attend a tertiary institution offering their chosen course of study.
An allowance of $1 050 is paid to eligible students receiving Youth Allowance or other equivalent Commonwealth Government benefits and to students approved under the special family provisions of the scheme. Commonwealth Grants to Non-Government Schools This grant program represents Commonwealth Government funding relating to non-government schools. These funds are administered on behalf of the Commonwealth Department of Education, Science and Training and, upon receipt, are forwarded to non-government schools. Non-Government Schools: Capital Assistance These grants are made to non-government schools and non-government school authorities for assistance with eligible capital projects in accordance with sections 64 and 65A of the Education Act 1994. Non-Government Schools: Grants The program covers the cost of grants which are distributed to registered non-government schools in accordance with Part 5, Division 3 of the Education Act 1994 and Part 6 of the Education Regulations 1995.
Chapter 3: Education 71 Non-Government Schools: Student Assistance This includes the operation of the Student Assistance Scheme and coverage of costs for the supply of spectacles to students whose parents are unable to provide them. Revenue Collected on Behalf of the Consolidated Fund
Table 3.10 summarises the Revenue collected on behalf of the Consolidated Fund by the Department of Education.
Table 3.10: Revenue Collected on Behalf of the Consolidated Fund 2003-04 2004-05 Budget) Budget) Variation) $'000) $'000) %) REVENUE Grants 78 295) 84 355) 7.7) Sales of Goods and Services1 8 556) 2 016) (76.5) TOTAL REVENUE 86 851) 86 371) (0.6)
Transfers to the Consolidated Fund Administration Charges on Commonwealth Government Program 1 355) 1 388) 2.4) Commonwealth Recurrent Grants 78 295) 84 355) 7.7) Municipal Library Levy1 6 588) ....) (100.0) Other Sales of Services 613) 628) 2.4) TOTAL TRANSFERS TO THE CONSOLIDATED FUND 86 851) 86 371) (0.6)
Note: 1. The variation reflects the cessation of the Municipal Library Levy as a result of the State and Local Government Financial Reforms.
Capital Investment Program
The Capital Investment Program for 2004-05 provides funding for a significant number of high priority projects in schools, the Institute of TAFE Tasmania and the State Library of Tasmania. New Projects
New projects being undertaken include:
• Bowen Road Primary School – Redevelopment of outdated of classroom accommodation;
• Devonport Primary School – Redevelopment of outdated classroom accommodation and specialist facilities;
• Latrobe High School – Redevelopment of outdated general learning areas and community related arts centre;
• Library Multisites - Statewide library capital initiative;
• Mountain Heights School - Redevelopment of the administration area;
72 Chapter 3: Education • New Norfolk High School – Rectification of structural problems and redevelop administration and metal work facilities;
• Ogilvie High School – Redevelopment of outdated music, and speech and drama areas;
• Port Dalrymple District High School – Redevelopment of administration and outdated general learning areas;
• Rosetta High School – Stage 2 redevelopment of outdated classroom accommodation, canteen and specialist learning areas;
• Smithton High School - Stage 2 redevelopment of outdated classroom accommodation and specialist learning areas;
• Springvale Hostel – Redevelopment of hostel accommodation;
• Ulverstone Primary School - Redevelopment of outdated classroom accommodation in the northern building;
• Warrane Primary School - Redevelopment of outdated classroom accommodation;
• Youngtown Primary School - Redevelopment of outdated classroom accommodation and provision of a multi-purpose room;
• The Institute of TAFE Tasmania – Clarence Campus - Relocation of building trades B;
• The Institute of TAFE Tasmania – Multisites – Information Technology flexible delivery project; and
• The Institute of TAFE Tasmania – Multisites - Essential infrastructure upgrades. Continuing Projects
Continuing projects being undertaken include:
• Building Service Maintenance – Essential and statutory maintenance on building mechanical services including fire, hydraulic and lift equipment;
• Mowbray Heights Primary School – Provision of a new kindergarten and administration building together with the redevelopment of outdated general learning areas;
• Oatlands District High School – Redevelopment of library, technology centre and classroom accommodation;
• Rose Bay High School - Redevelopment of outdated classroom accommodation;
• Scottsdale High School – Upgrade of general purpose hall to facilitate speech and drama and performing arts;
• The Institute of TAFE Tasmania - TAFE Infrastructure Support – General infrastructure support for delivery of vocational education and training; and
• Τhe Institute of TAFE Tasmania - Clarence Campus – Redevelopment to provide a modern learning environment.
Chapter 3: Education 73 Table 3.11: Capital Investment Program1 2004-05) Budget) $'000) New Projects Bowen Road Primary School2 380) Devonport Primary School2 220) Latrobe High School 1 950) Library – Multisites 350) Mountain Heights School2 350) New Norfolk High School2 330) Ogilvie High School3 1 569) Port Dalrymple District High School 1 151) Rosetta High School3 500) Smithton High School2 1 000) Springvale Hostel 500) Ulverstone Primary School 3 800) Warrane Primary School 2 400) Youngtown Primary School3 340) TAFE - Clarence Campus 900) TAFE - Flexible IT Delivery3 450) TAFE - Infrastructure Upgrades3 685)
Continuing Projects Building Services Maintenance – Education 1 624) Building Services Maintenance - TAFE 492) Mowbray Heights Primary School3 750) Oatlands District High School3 200) Rose Bay High School3 1 009) Scottsdale High School 2 350) TAFE - Infrastructure Support3 850) TAFE - Clarence Campus3 1 916)
TOTAL CAPITAL INVESTMENT PROGRAM 19 066)
Notes: 1. For more information regarding the Capital Investment Program see Chapter 6 in Budget Paper No 1 Budget Overview 2004-05. 2. These projects are jointly State and Commonwealth funded and subject to confirmation of Commonwealth funding. 3. These projects are funded by the Commonwealth and subject to confirmation of Commonwealth funding.
74 Chapter 3: Education DETAILED BUDGET STATEMENTS
Table 3.12: Output Group Expense Summary for the Department of Education 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) Minister for Education Output Group 1 – Pre-Compulsory and Compulsory Education 1.1 In School Education 460 232) 490 594) 6.6) 1.2 Schools Delivery Support 13 219) 13 343) 0.9) 1.3 Curriculum Standards 4 867) 4 784) (1.7) 1.4 Educational Review1 833) 934) 12.1) 1.5 Leadership and Learning2 4 344) 6 402) 47.4) 1.6 Child Care 977) 1 005) 2.9) 1.7 Grants and Financial Assistance 6 019) 6 019) ....) 490 488) 523 081) 6.6) Output Group 2 – Post-Compulsory Education and Training 2.1 Provision of VET by TAFE Tasmania under Agreement 54 789) 56 516) 3.2) 2.2 Provision of VET- Apprentices, Trainees and Competitive Bids3 19 443) 21 836) 12.3) 2.3 Post-Compulsory In School Education 73 892) 75 725) 2.5) 2.4 Post-Compulsory Education and Training, Regulation and Support 7 392) 7 117) (3.7) 2.5 Tasmanian Qualifications Authority 2 874) 2 999) 4.3) 2.6 Youth Affairs 379) 392) 3.4) 2.7 Adult Education ....) 3 800) ....) 2.8 Grants and Financial Assistance 3 525) 3 530) 0.1) 162 294) 171 915) 5.9) Output Group 3 – Public Information Services 3.1 Public Library and Information Services 22 341) 23 166) 3.7) 3.2 Archival and Records Management Services 1 721) 1 799) 4.5) 3.3 Online Access Centres 1 878) 2 000) 6.5) 25 940) 26 965) 4.0)
Grants and Subsidies 125 060) 132 426) 5.9)
Other 6 200) 6 017) (3.0)
TOTAL AGENCY 809 982) 860 404) 6.2)
Notes: 1. The increased expenditure is primarily associated with Specific Purpose Projects in 2004-05. 2. The increased expenditure primarily reflects the inclusion of Commonwealth funded Literacy programs. 3. The variation primarily reflects expenditure associated with Specific Purpose Projects including the Environmental Tourism Program and the Industry Technology Training Program.
Chapter 3: Education 75 Table 3.13: Statement of Financial Performance for the Department of Education 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 635 970) 657 942) 3.4) Other1 2 400) 4 750) 97.9) Investment Income2 1 786) 1 600) (10.5) Grants3 10 295) 7 322) (28.9) Sales of Goods and Services4 11 441) 12 897) 12.7) Other Revenue 21 916) 22 706) 3.6) TOTAL 683 808) 707 217) 3.4)
OPERATING EXPENSES Employee Entitlements 478 741) 508 560) 6.2) Superannuation 41 798) 42 325) 1.2) Depreciation and Amortisation 17 891) 17 891) ....) Grants and Transfer Payments 10 129) 10 134) ....) Supplies and Consumables5 136 043) 148 748) 9.3) TOTAL 684 602) 727 658) 6.2)
NET OPERATING RESULT (794) (20 441) ....)
ADMINISTERED ITEMS
REVENUE Revenue from Government Annual Appropriation 33 310) 35 166) 5.5) Grants 170 370) 181 935) 6.7) Sales of Goods and Services6 8 556) 2 016) (76.5) TOTAL 212 236) 219 117) 3.2)
EXPENSES Grants and Subsidies Grants and Transfer Payments 125 060) 132 426 5.8) Supplies and Consumables 320) 320) ....)) Total Grants and Subsidies 125 380) 132 746) 5.8) Transfer to the Consolidated Fund 86 851) 86 371) (0.6) TOTAL 212 231) 219 117) 3.2)
76 Chapter 3: Education Notes: 1. The variation reflects the inclusion of section 8A(2) of the Public Account Act 1986 carry forwards from the 2003-04 year as Revenue from Government in 2004-05. 2. The variation reflects lower expected interest income received in respect of accounts within the Special Deposits and Trust Fund primarily due to the expenditure of Commonwealth Telstra Bonus Funds. 3. The decrease reflects the conclusion of various programs funded by the Commonwealth, primarily the Environmental Tourism program. 4. The increase primarily reflects the inclusion of Adult Education fees following the transfer of this function to the Department. 5. The increased expenditure primarily relates to a higher level of expenditure associated with Commonwealth and other Specific Purpose Projects, and the transfer of Adult Education from TAFE to the Department in 2004-05. 6. The variation reflects the cessation of the Municipal Library Levy as a result of the State and Local Government Financial Reforms.
Chapter 3: Education 77 Table 3.14: Statement of Financial Position as at 30 June for the Department of Education 2004) 2005) Budget) Budget) Variation) $'000) $'000) %) CURRENT ASSETS Cash 37 280) 35 580) (4.6) Receivables 3 131) 3 805) 21.5) Prepayments 890) 980) 10.1) Tax Assets1 3 078) 4 150) 34.8) Other 106) 65) (38.7) TOTAL 44 485) 44 580) 0.2)
NON-CURRENT ASSETS Land and Buildings 742 642) 751 991) 1.2) Plant and Equipment 21 597) 20 774) (3.9) TOTAL 764 239) 772 765) 1.1)
TOTAL ASSETS 808 724) 817 345) 1.0)
CURRENT LIABILITIES Payables2 5 539) 4 083) (26.3) Interest Bearing Liabilities ....) 5) ....) Employee Entitlements3 16 237) 18 250) 12.3) Superannuation4 2 863) 2 008) (29.9) Accrued Expenses 1 572) 1 667) 6.0) TOTAL 26 211) 26 013) (0.8)
NON-CURRENT LIABILITIES Employee Entitlements3 64 985) 70 843) 9.0) TOTAL 64 985) 70 843) 9.0)
TOTAL LIABILITIES 91 196) 96 856) 6.2)
NET ASSETS 717 528) 720 489) 0.4)
Notes: 1. The variation reflects an increase in the estimated value of Goods and Services Tax Input Tax Credits as at 30 June 2005. 2. The variation reflects a reduction in the estimated value of invoices due for payment in 2005-06 as at 30 June 2005. 3. The variation reflects increased salary costs and an increase in the provision for Long Service Leave. 4. The variation reflects a reduction in the estimated value of Superannuation as at 30 June 2005.
78 Chapter 3: Education Table 3.14: Statement of Financial Position as at 30 June for the Department of Education (continued) 2004 2005 Budget) Budget) Variation) $'000) $'000) % ADMINISTERED ITEMS
CURRENT ASSETS Receivables 5) ....) (100.0) TOTAL 5) ....) (100.0)
NON-CURRENT ASSETS TOTAL ....) ....) ....)
TOTAL ASSETS 5) ....) (100.0)
CURRENT LIABILITIES TOTAL ....) ....) ....)
NON-CURRENT LIABILITIES TOTAL ....) ....) ....)
TOTAL LIABILITIES ....) ....) ....)
NET ASSETS 5) ....) (100.0)
Chapter 3: Education 79 Table 3.15: Statement of Cash Flows for the Department of Education 2004-05) 2004-05) Budget) Budget) Variation) $'000) $'000) %) CASH FLOWS FROM OPERATING ACTIVITIES Receipts Revenue from Government Appropriation 635 970) 657 942) 3.4) Interest Received1 1 786) 1 600) (10.5) Grants2 10 295) 7 322) (28.9) Sales of Goods and Services3 11 441) 12 897) 12.7) Other Receipts 20 678) 21 468) 3.8) Payments Employee Entitlements (488 861) (505 677) 3.4) Superannuation (41 798) (42 169) 0.8) Grants and Transfer Payments (10 129) (10 134) ....) Supplies and Consumables4 (136 252) (148 938) 9.3) NET CASH FROM/(USED IN) OPERATING ACTIVITIES 3 130) (5 689) (281.8)
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of Fixed Assets5 (11 898) (13 486) 13.3) NET CASH FROM/(USED IN) INVESTING ACTIVITIES (11 898) (13 486) 13.3)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held (8 768) (19 175) 118.6)
Cash at the Beginning of Reporting Period 46 048) 54 755) 18.9)
Cash at the End of Reporting Period 37 280) 35 580) (4.6)
Notes: 1. The variation reflects lower expected interest income received in respect of accounts within the Special Deposits and Trust Fund primarily due to the expenditure of Commonwealth Telstra Bonus Funds. 2. The decrease reflects the conclusion of various programs funded by the Commonwealth, primarily the Environmental Tourism program. 3. The increase primarily reflects the inclusion of Adult Education fees following the transfer of this function from TAFE to the Department in 2004-05. 4. The increased expenditure primarily relates to a higher level of expenditure associated with Commonwealth and other Specific Purpose Projects and the inclusion of Adult Education expenditure following the transfer of this function from TAFE to the Department in 2004-05. 5. The variation reflects an increase in the value of assets to be purchased in 2004-05 primarily relating to Land and Buildings and Plant and Equipment.
80 Chapter 3: Education Table 3.15: Statement of Cash Flows for the Department of Education (continued) 2004-054 2004-05) Budget) Budget) Variation) $'000) $'000) %) ADMINISTERED ITEMS
CASH FLOWS FROM OPERATING ACTIVITIES Receipts Revenue from Government Appropriation 33 310) 35 166) 5.5) Grants 170 370) 181 935) 6.7) Sales of Goods and Services1 8 556) 2 016) (76.5) GST Receipts 18 125) 19 000) 4.8) Payments Grants and Transfer Payments (125 060) (132 426) 5.9) Supplies and Consumables (320) (320) ....) Transfers to the Consolidated Fund (86 851) (86 371) (0.6) GST Payments (18 125) (19 000) 4.8) NET CASH FROM/(USED IN) OPERATING ACTIVITIES 5) ....) (100.0)
CASH FLOWS FROM INVESTING ACTIVITIES NET CASH FROM/(USED IN) INVESTING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM FINANCING ACTIVITIES Net Borrowings (5) ....) (100.0) NET CASH FROM/(USED IN) FINANCING ACTIVITIES (5) ....) (100.0)
Net Increase/(Decrease) In Cash Held ....) ....) ....)
Cash at the Beginning of Reporting Period ....) ....) ....)
Cash at the End of Reporting Period ....) ....) ....)
Note: 1. The variation reflects the cessation of the Municipal Library Levy as a result of the State and Local Government Financial Reforms.
Chapter 3: Education 81 Table 3.16: Reconciliation of Operating Expenses to Consolidated Fund Appropriation 2003-04 2004-05 Budget Budget $'000 $'000
Total Operating Expenses 809 982 860 404
Adjustments for Non-Cash Items Depreciation (17 891) (17 891) Employee Entitlements 10 120 (2 883) Superannuation .… (156) Supplies and Consumables 209 190 Total Cash Cost of Outputs 802 420 839 664
Other Funding Sources (145 038) (160 042) Purchase of Capital Items 11 898 13 486
TOTAL CONSOLIDATED FUND APPROPRIATION 669 280 693 108
82 Chapter 3: Education 4 FINANCE-GENERAL
OUTLINE
The Finance-General Division is administered by the Department of Treasury and Finance. Expenditure through Finance-General generally reflects whole-of-government activities.
The major activities transacted through Finance-General include the management of the Government's debt portfolio, meeting the Government's pension and other superannuation commitments, the administration of the Tasmanian Risk Management Fund, the management of the Government's light vehicle fleet and property portfolio and payments to Government businesses. Information on the Government's superannuation liabilities and administration of the Tasmanian Risk Management Fund is provided in Chapter 7 of Budget Paper No 1 Budget Overview 2004-05.
Certain provisions have been made in the Special Deposits and Trust Fund to meet future liabilities of the Government. These include a superannuation provision and a provision for workers' compensation and other risks within the Tasmanian Risk Management Fund in respect of inner-Budget agencies.
As a result of presenting information on a gross basis, some of the expenditure shown in Finance-General Outputs, such as expenditure from the Superannuation Provision Account, is also reflected in the Outputs of government departments. Inter-department transactions make up part of the revenue source of a number of Finance-General Output Groups. These inter-departmental transactions are eliminated in consolidating departmental information to form sector and other aggregates. Consequently, there is no net impact on the level of expenditure made from the Public Account.
Chapter 4: Finance-General 83 SUMMARY AGENCY 2004-05 BUDGET INFORMATION
Financial Summary
Table 4.1: Summary Financial Information for Finance-General 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 341 142) 348 022) 2.0) Reserved by Law 157 255) 166 863) 6.1) Other1 2 100) ....) (100.0) Other Revenue2 188 652) 285 695) 51.4) TOTAL 689 149) 800 580) 16.2)
OPERATING EXPENSES Debt Servicing and Management3 60 986) 50 451) (17.3) Employee Related Costs 209 649) 222 655) 6.2) Government Businesses4 13 075) 12 107) (7.4) Miscellaneous5 122 499) 136 441) 11.4) Grants and Subsidies 112 255) 108 185) (3.6) Other6 70 717) 101 893) 44.1) TOTAL 589 181) 631 732) 7.2)
NET RESULT FROM OPERATING ACTIVITIES7 99 968) 168 848) 68.9)
Less Transfers to the Consolidated Fund Principal8 647 386 (40.3) Net Transfer from Provisions and Equity Adjustments8 22 444 (14 427) (164.3)
NET OPERATING RESULT 76 877) 178 689) 132.4)
Notes: 1. Other Revenue from Government represents amounts carried forward from 2003-04 under section 8A(2) of the Public Account Act 1986. The 2003-04 Budget included an estimated carry forward of $2.1 million for the First Home Owners Grant Scheme. No section 8A(2) carry forward is budgeted for 2004-05. 2. Other revenue is comprised of agency contributions to the Tasmanian Risk Management Fund and the Superannuation Provision Account within the Special Deposits and Trust Fund, property lease and rental receipts and vehicle lease and management payments received from agencies, investment income and the gain in value of the Government's equity interest in government businesses. The primary cause of the $97.1 million increase in Other Revenue between the 2003-04 Budget estimate and the 2004-05 Budget estimate is an estimated increase of $119.9 million in the value of the Government's equity interest in Government businesses between 30 June 2004 and
84 Chapter 4: Finance-General 30 June 2005. This is partially offset by a decrease of $5.3 million in estimated income relating to on-lent Financial Agreement debt and Commonwealth-State Housing debt. Further information in relation to these items can be found in the summary financial information for each Output Group. 3. The reduction in 2004-05 Debt Servicing and Management arises from savings achieved due to an overall reduction in the level of State Debt and the temporary financing of maturing debt from surplus cash held in the Public Account. 4. Whilst the Finance-General Chapter in Budget Paper No 2 Operations of Government Departments 2003-04 originally included an estimate of $44.0 million for annual grant contributions to TT-Line Company Pty Ltd for the purchase of one of two vessels to replace the original Spirit of Tasmania, the accounting treatment of this payment was revised during 2003-04. The contribution in respect of principal debt repayments is now recorded as an equity contribution to TT-Line. In accordance with Generally Accepted Accounting Principles, equity contributions are not recorded as an operating expense in the Statement of Financial Performance, but rather are reflected as an increase in the balance of equity investments in the Statement of Financial Position and included in cash payments under Net Purchase of Investments in the Statement of Cash Flows. The original 2003-04 Budget has been recast to reflect comparable estimates. The estimated expense for payments to TT-Line within Output Group 3 now reflects only the estimated payment in respect of interest costs in 2003-04 and 2004-05. 5. The increase in Miscellaneous is primarily due to an appropriation of $5.4 million in 2004-05 to provide for compensation payments to victims of child abuse, an increase of $3.9 million in expenses of the Tasmanian Risk Management Fund principally associated with the estimated movement in the outstanding liabilities of the Fund between 30 June 2004 and 30 June 2005 and an increase of $1.2 million in the estimated expenditure under the Structural and Performance Initiatives Program. For further details, see Table 4.5. 6. Other operating expenses include expenditure relating to the Capital Investment Program and Infrastructure Funds. The increase in the estimate for 2004-05 is related to expenditure from the Economic and Social Infrastructure Fund. For further information, refer to the section of this Chapter relating to the Infrastructure Funds. 7. The Financial Summary provides a consolidated view of the extent of activities that Finance-General undertakes and is an aggregation of the Summary Financial Information of all Output Groups. The Net Result from Operating Activities in the Summary Financial Statement does not equate to the Net Operating Result presented in Table 4.12: Statement of Financial Performance due to differences in the accounting treatment of receipts of principal repayments and the subsequent transfer of certain of those receipts to the Consolidated Fund, and the transfer of funds from provisions within the Special Deposits and Trust Fund to the Consolidated Fund. 8. In accordance with generally accepted accounting principles, receipts of principal debt repayments and equity withdrawals are not reported as operating revenue in the Statement of Financial Performance, but rather are reflected as a reduction in the balance of investments in the Statement of Financial Position and included in cash receipts under Net Customer Loans Granted/(Repaid) and Net Purchase of Investments respectively in the Statement of Cash Flows. However, the subsequent transfer of relevant amounts to the Consolidated Fund is included in operating expenses in the Statement of Financial Performance. Similarly, the transfer of funds from provisions within the Special Deposits and Trust Fund is reported only as expenditure and is not included in operating revenue within the Statement of Financial Performance. The 2004-05 Budget includes the transfer of $4.2 million from the Payroll Provision Account within the Special Deposits and Trust Fund to the Consolidated Fund, for subsequent appropriation to the Department of Health and Human Services to fund a 27th Pay as You Go (PAYG) Commonwealth income tax payment in 2004-05, and the transfer of a $25.0 million equity withdrawal relating to the estimated proceeds to be realised in 2004-05 from the sale of non-core assets of the Hobart Ports Corporation Pty Ltd. Also included is the transfer of the Consolidated Fund Surplus to the Temporary Debt Repayment Account within the Special Deposits and Trust Fund. The Net Result from Operating Activities in the Summary Financial Statement excludes these inter-Fund transfers. As principal receipts and transfers from provisions are not included in operating revenue but are included in operating expenses, the exclusion of these items results in a difference between the reduction in operating expense, in comparison with the Statement of Financial Performance, than the reduction in operating revenues. Consequently, these items have been adjusted against the Net Result from Operating Activities in the Summary Financial Statement to determine the Net Operating Result.
Chapter 4: Finance-General 85 DETAILED OUTPUT GROUP 2004-05 BUDGET INFORMATION
The individual Outputs of Finance-General are provided under the following Output Groups:
Output Group 1: Debt Servicing and Management;
Output Group 2: Employee Related Costs;
Output Group 3: Government Businesses; and
Output Group 4: Miscellaneous.
Output Group 1: Debt Servicing and Management Description
This Output Group principally relates to the interest costs incurred in managing the State Government's debt portfolio. The State's debt position, level of borrowings, debt servicing costs and other financial liabilities are important measures of the financial position of the public sector. Further details of debt and debt servicing costs are provided in Chapter 7 of Budget Paper No 1 Budget Overview 2004-05.
This Output Group also includes interest costs on debt attached to specific activities of the Government, such as transactions associated with the repayment of Commonwealth debt in relation to housing activities, and interest payable on certain funds managed through the Special Deposits and Trust Fund.
86 Chapter 4: Finance-General Table 4.2: Summary Financial Information - Output Group 1 2003-04) 2004-05) Debt Servicing and Management Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government1 Annual Appropriation 98 786) 98 630) (0.2) Reserved by Law2 4 089) 1 123) (72.5) Investment Income3 11 663) 11 308) (3.0) Grants4 3 725) 2 864) (23.1) TOTAL 118 263) 113 925) (3.7)
OPERATING EXPENSES Borrowing Costs5 60 986) 50 451) (17.3) Supplies and Consumables TOTAL 60 986) 50 451) (17.3)
EXPENSE BY OUTPUT 1.1 Debt Servicing6 47 323) 35 807) (24.3) 1.2 Interest on Sundry Deposits7 2 000) 3 200) 60.0) 1.3 Debt Management8 11 663) 11 444) (1.9) TOTAL 60 986) 50 451) (17.3)
Notes: 1. The 2004-05 Consolidated Fund Annual Appropriation for this Output Group of $98.6 million represents external debt servicing costs of $35.6 million, interest payable on accounts in the Special Deposits and Trust Fund of $48.8 million, repayments of principal and interest for debt relating to the original Spirit of Tasmania of $6.2 million and a provision for debt management of $8.0 million. Interest payable includes $45.6 million ($34.6 million in 2003-04) for the payment of interest on balances held by Finance-General in the Special Deposits and Trust Fund. This consists of interest on the Superannuation Provision Account of $39.9 million ($30.9 million in 2003-04), the Tasmanian Risk Management Fund Account of $5.2 million ($3.3 million in 2003-04), the Tasmanian Community Fund Account of $372 000 ($233 000 in 2003-04) and the Helsham Agreement Grants Account of $130 000 ($162 000 in 2003-04). However, in accordance with Generally Accepted Accounting Principles, in the process of reporting on the Finance-General Division as a single entity, all intra-entity transactions have been eliminated. Thus, interest paid and payable on balances held by Finance-General in the Special Deposits and Trust Fund is not reflected in Output 1.2 or in the expenditure or receipts reported in the Statement of Financial Performance and the Statement of Cash Flows. Interest payable also includes $3.2 million (2003-04 $2.0 million) relating to accounts held by other agencies within the Special Deposits and Trust Fund, including the Supreme Court Suitors Fund Deposit Account, the Department of Health and Human Services Patient Trust and Hospital Bequest Account, the Department of Health and Human Services Housing Services Operating Account and the Department of Infrastructure, Energy and Resources Workers' Compensation Act 1988 Fund Account. An amount of $8.0 million ($7.0 million in 2003-04) is included in the appropriation for this Output Group as a provision available to meet the cost of any debt restructuring opportunities that may arise during the financial year or to be applied in meeting the cost of repaying maturing debt. Principal repayments of $5.4 million ($4.3 million in 2003-04) relating to original Spirit of Tasmania debt comprise the remainder of cash inflows included in the Annual Appropriation. Principal repayments are capital transactions and consequently are not reflected in Output 1.1 or in the expenditure reported in the Statement of Financial Performance. As a capital transaction, the principal repayment is included within Interest Bearing Liabilities in the Statement of Financial Position and the Statement of Cash Flows. The reduction in the 2004-05 Consolidated Fund Annual Appropriation is primarily due to savings from an overall reduction in the level of State Debt from temporary financing of maturing debt from surplus cash held in the Public Account. 2. A Reserved by Law amount of $997 000 is provided in 2004-05 for this Output Group ($3.7 million in 2003-04) for the payment of interest on loans raised by the Commonwealth on behalf of Tasmania under the terms of the Financial
Chapter 4: Finance-General 87 Agreement Act 1927. A further Reserved by Law item of $2 000 in 2004-05 ($3 000 in 2003-04) is provided to meet Tasmania's proportion of loan raising and management expenses in respect of loans raised on behalf of the State by the Commonwealth Government. The actual cost incurred in any year is dependent upon the volume of transactions, including redemptions of stocks and bonds raised by the Commonwealth for and on behalf of the State. The actual cost will continue to trend downward due to the new refinancing arrangements in respect of maturing Commonwealth borrowings. Under the terms of the Financial Agreement Act 1994, the State is required to contribute to the Debt Retirement Reserve Trust Account Reserved by Law item, so as to provide funds for the redemption of maturing Commonwealth debt held on behalf of Tasmania. The contribution is 0.85 per cent of the State's outstanding Commonwealth debt as at 30 June of the preceding financial year. The amount of contributions for 2004-05 is $124 000 ($436 000 in 2003-04). Revenue from Government is included in the Statement of Financial Performance. However, as a capital transaction the principal repayment is not included in Output 1.1 or in the expenses reported in the Statement of Financial Performance, but is reflected as a decrease in liabilities in the Statement of Financial Position and the Statement of Cash Flows. 3. Investment Income represents interest received in 2004-05 of $11.4 million ($11.7 million in 2003-04) from the Department of Health and Human Services in relation to Commonwealth-State Housing Agreement debt, offset by a decrease of $136 000 in accrued interest receivable. Payment of interest to the Commonwealth is reflected in Output 1.3, and both the expense and revenue are reported in the Statement of Financial Performance and the Statement of Cash Flows. 4. Grants reflects compensation from the Commonwealth of $2.9 million in 2004-05 ($3.7 million in 2003-04) provided as part of the Commonwealth-State agreement to refinance Commonwealth debt. The figure varies in accordance with a schedule agreed between the Commonwealth and the State. As a grant, the compensation is included as revenue in the Statement of Financial Performance. However, as a capital transaction the principal repayment is not included in Output 1.1 or in the expenses reported in the Statement of Financial Performance, but is reflected as a decrease in liabilities in the Statement of Financial Position and the Statement of Cash Flows. 5. Borrowing Costs reflects the payment of interest on borrowings and other outstanding debt. The reduction in 2004-05 is primarily due to savings from an overall reduction in the level of State Debt from temporary financing of maturing debt from surplus cash held in the Public Account. 6. Debt Servicing reflects the interest cost and principal repayments of borrowings and other outstanding debts such as the Government's liability for debt associated with the purchase of the original Spirit of Tasmania. The decrease in the 2004-05 Budget estimate for Debt Servicing is primarily due to savings from an overall reduction in the level of State Debt from temporary financing of maturing debt from surplus cash held in the Public Account. 7. Interest on Sundry Deposits reflects the payment of interest on balances held by agencies, other than Finance-General, in accounts in the Special Deposits and Trust Fund. The increase in the 2004-05 Budget estimate for Interest on Sundry Deposits primarily reflects an increase in the estimated interest rate and an estimated increase in the balance of several interest bearing accounts within the Special Deposits and Trust Fund. 8. Debt Management represents interest payments to the Commonwealth relating to debt incurred under various Commonwealth-State Housing Agreements.
Comments
The major focus of activity for this Output Group is on minimising the costs associated with the management of State Debt. The reduction in debt servicing costs in 2004-05 reflects a substantial decline in the overall level of State Debt and the effect of financing maturing debt from surplus cash held in the Public Account.
Output 1.1 – Debt Servicing
This Output meets the costs of servicing and managing the State Government's gross debt portfolio. The Output provides for the interest cost and principal repayments of borrowings and other outstanding debts such as the Government's liability for debt associated with the purchase of the original Spirit of Tasmania.
The State Debt held by the Government consists of borrowings from the Commonwealth under the Financial Agreement Act 1927 (Commonwealth), other Commonwealth borrowings and borrowings through Tascorp. All State Debt (that is, excluding Non-Financial Agreement Housing Debt) raised by the Commonwealth for and on behalf of the State will be fully repaid by 30 June 2006. It is estimated that, as at 30 June 2005, State Debt managed within Finance-General will be $338.4 million, consisting of $331.2 million in borrowings
88 Chapter 4: Finance-General through Tascorp and Commonwealth debt of $7.2 million. This debt is reported under Interest Bearing Liabilities in the Statement of Financial Position for Finance-General.
Debt servicing expenses represent interest accruing on outstanding debt during the financial year. In 2004-05, debt servicing expenses are estimated to total $35.8 million, an anticipated decrease of some $11.5 million in comparison with the budgeted costs in 2003-04. The 2004-05 estimate of $35.8 million ($47.3 million in 2003-04) comprises cash interest payments of $37.4 million, less an anticipated $1.6 million decrease in accrued interest expense due to the reduction in outstanding debt and the timing of interest payments. Cash interest payments include cash interest costs associated with borrowings through the Tasmanian Public Finance Corporation of $35.6 million ($49.0 million in 2003-04), interest payments of $1.0 million ($3.7 million in 2003-04) to the Commonwealth on Financial Agreement debt, Tasmania's proportion of expenses in respect of loans raised on behalf of the State by the Commonwealth of $2 000 ($3 000 in 2003-04) and estimated interest expenses of $768 000 ($1.9 million in 2003-04) in relation to the original Spirit of Tasmania.
The original Spirit of Tasmania was purchased in 1993-94 at a cost of $155.0 million. In order to ensure an appropriate capital structure for TT-Line Company Pty Ltd, the State-owned Company established to manage and operate the vessel, the Government agreed to hold and service a proportion of the debt associated with the purchase. Although the original Spirit of Tasmania was sold in 2002-03, the proceeds were applied to the acquisition of one of the two new vessels acquired in 2002-03, rather than to reducing the balance of the debt associated with the purchase of the original Spirit of Tasmania in 1993-94. As at 30 June 2004, the Government's liability is estimated to stand at $17.0 million. However, a strategy is in place to repay the outstanding liability by payments of $6.2 million per annum (including both capital and interest payments).
The projected reduction in accruing interest expenses in 2004-05 primarily reflects a decrease in State Debt as a result of:
• arrangements introduced in 1994-95 enabling State authorities to repay advances from the Government which were sourced from Financial Agreement funds;
• the application of Commonwealth compensation funds to repay debt; and
• the estimated Consolidated Fund Surpluses for 2003-04 and 2004-05, which will be applied to the reduction in gross debt levels.
Output 1.2 – Interest on Sundry Deposits
This Output provides for the payment of interest on balances held in certain accounts in the Special Deposits and Trust Fund.
The expense of $3.2 million in 2004-05 for this Output ($2.0 million in 2003-04) is the interest payable on accounts held by other agencies within the Special Deposits and Trust Fund, including interest on the Supreme Court Suitors Fund Deposit Account of $127 000 ($135 000 in 2003-04), the Department of Health and Human Services Patient Trust and Hospital Bequest Account of $505 000 ($225 000 in 2003-04), the Department of Health and Human Services Housing Services Operating Account of $2.2 million ($1.4 million in 2003-04) and the Department of Infrastructure, Energy and Resources Workers' Compensation Act 1988 Fund Account of $60 000 ($66 000 in 2003-04) and interest on other agency accounts of $308 000 ($224 000 in 2003-04). The increase of $1.2 million between the 2003-04 Budget estimate and the
Chapter 4: Finance-General 89 2004-05 Budget estimate primarily reflects an increase in the estimated interest rate and an estimated increase in the balance of several interest bearing accounts within the Special Deposits and Trust Fund. Output 1.3 – Debt Management
This Output reflects the transactions associated with the repayment of Commonwealth debt associated with housing activities and those related to managing the State Government's debt portfolio
The expense of $11.4 million in 2004-05 in this Output ($11.7 million in 2003-04) represents interest payments to the Commonwealth relating to debt incurred under various Commonwealth-State Housing Agreements. It is estimated that Commonwealth-State Housing Agreement Debt will total $253.4 million at 30 June 2005. This debt is reported under Interest Bearing Liabilities in the Statement of Financial Position for Finance-General.
Principal repayments by Housing Tasmania of $5.3 million in 2004-05 ($5.1 million in 2003-04) and by State authorities of $4.0 million in 2004-05 ($9.5 million in 2003-04) are capital transactions and are not reflected in Output 1.3 or in the expenditure reported in the Statement of Financial Performance but are included within Interest Bearing Liabilities in the Statement of Financial Position and the Statement of Cash Flows.
Output Group 2: Employee Related Costs Description
This Output Group encompasses those employee costs that are managed centrally within the Finance-General Division. The major Outputs in this Group relate to the Government's obligation in relation to the employer share of pension and lump sum benefit costs, and an annual provision for wage increases.
90 Chapter 4: Finance-General Table 4.3: Summary Financial Information - Output Group 2 2003-04) 2004-05) Employee Related Costs Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 17 070) 17 370) 1.8) Reserved by Law2 121 499) 134 086) 10.4) Other Revenue3 68 578) 68 643) 0.1) TOTAL 207 147) 220 099) 6.3)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 13 000) 13 000) ....) Other Employee Related Expenses 70) 70) ....) Superannuation 196 579) 209 585) 6.6) TOTAL 209 649) 222 655) 6.2)
EXPENSE BY OUTPUT 2.1 Superannuation and Pensions4 196 579) 209 585) 6.6) 2.4 Other5 70) 70) ....) 2.5 Provision for Wage Increases6 13 000) 13 000) ....) TOTAL 209 649) 222 655) 6.2)
Notes: 1. The 2004-05 Consolidated Fund Annual Appropriation for this Output Group of $17.4 million represents a provision for wage increases ($13.0 million), a provision for the payment of long service leave allowances ($70 000), a contribution to the Payroll Provision Account in the Special Deposits and Trust Fund ($4.0 million) and a payment in respect of the State's share of higher education superannuation costs ($300 000). The appropriation for wage increases of $13.0 million in 2004-05 ($13.0 million in 2003-04) makes provision for increased salary and wage expenses above the current funding provided to agencies. The appropriation for this Output Group also includes a contribution of $4.0 million (2003-04 $4.0 million) to the Payroll Provision Account within the Special Deposits and Trust Fund to be utilised to meet the cost of the 27th public service pay, which occurs once every 11 years. However, in accordance with Generally Accepted Accounting Principles, all intra-entity transactions have been eliminated. Thus, the contribution to the Payroll Provision Account held by Finance-General in the Special Deposits and Trust Fund is not reflected in Output 2.3 or in the expenditure reported in the Statement of Financial Performance and the Statement of Cash Flows. The $300 000 appropriation ($0 in 2003-04) for the State's share of higher education superannuation expenses represents the Tasmanian Government's share of the superannuation liability relating to the former Tasmanian College of Advanced Education and University employees who were employed by the State Government before responsibility for these institutions was transferred to the Commonwealth Government. The appropriation under the Long Service Leave (State Employees) Act 1994 of $70 000 in 2004-05 ($70 000 in 2003-04) provides for payment of long service leave allowances for certain minor authorities which have accrued employee entitlements for which no provision has been made. 2. Reserved by Law for this Output Group relates to the Government's contributions to the Superannuation Provision Account in the Special Deposits and Trust Fund ($130.4 million), pensions payable under the Solicitor-General Act 1983 ($83 000), payments to the Parliamentary Superannuation Fund and the Parliamentary Retiring Benefits Fund ($2.4 million), pensions payable under the Judges' Contributory Pensions Act 1968 ($1.1 million) and pensions payable under the Governor of Tasmania Act 1982 ($42 000). The Reserved by Law appropriation includes a contribution of $130.4 million ($117.3 million in 2003-04) to the Superannuation Provision Account in the Special Deposits and Trust Fund. Payments are made to the Superannuation Provision Account in respect of the unfunded superannuation liability reported in Chapter 7 of Budget Paper No 1 Budget Overview 2004-05. However, in accordance with Generally Accepted Accounting Principles, all intra-entity transactions have been eliminated. Thus, the contribution to the Superannuation Provision Account held by Finance-General in the Special Deposits and Trust Fund is not
Chapter 4: Finance-General 91 reflected in Output 2.1 or in the expenditure reported in the Statement of Financial Performance and the Statement of Cash Flows. In accordance with the requirements of the Retirement Benefits (Parliamentary Superannuation) Regulations 2002, $2.4 million is included in the 2004-05 Reserved by Law appropriation to meet the emerging cost of the Parliamentary Superannuation Fund and the Parliamentary Retiring Benefits Fund ($1.6 million in 2003-04). The Reserved by Law appropriation also reflects costs incurred under the Judges' Contributory Pensions Act 1968 of $1.1 million ($2.5 million in 2003-04), the Solicitor-General Act 1983 of $83 000 ($103 000 in 2003-04) and the Governor of Tasmania Act 1982 of $42 000 ($38 000 in 2003-04). 3. Other Revenue reflects agency contributions to the Superannuation Provision Account in the Special Deposits and Trust Fund of $68.6 million ($68.5 million in 2003-04) and employer contributions from the Department of Justice in relation to the Judges' Contributory Pensions Act 1968 of $50 000 ($44 000 in 2003-04). 4. Superannuation and Pensions reflects the Government's share of pension and superannuation costs, including a provision for the Government's unfunded superannuation liability. 5. Other reflects the payment of allowances under the Long Service Leave (State Employees) Act 1994 for certain minor State authorities. 6. Provision for Wage Increases reflects a provision of $13.0 million for the cost of wage increases above the current amounts provided to agencies in the 2004-05 Budget.
Comments
The major focus of activity under this Output Group will continue to be the setting aside of funds by way of provisions to meet future superannuation liabilities. Elimination of the unfunded superannuation liability by 30 June 2018 is a key component of the Government's Fiscal Strategy. Further details regarding the Fiscal Strategy can be found in Chapter 1 of Budget Paper No 1 Budget Overview 2004-05. Output 2.1 – Superannuation and Pensions
This Output meets the Government's share of pension and superannuation costs, including a provision for the Government's unfunded superannuation liability.
In 2004-05, superannuation and pension expenses are estimated to total $209.6 million, an anticipated increase of some $13.0 million in comparison with the budgeted cost in 2003-04. The 2004-05 estimate comprises cash pension and lump sum payments of $139.4 million ($114.5 million in 2003-04), plus the estimated increase, based on actuarial advice, in the unfunded superannuation liability of the General Government Sector. The estimated increase in the unfunded superannuation liability in 2004-05 is $70.2 million ($77.8 million in 2003-04), which equates to the increase between the revised estimate of the liability as at 30 June 2004 of $2 062.5 million and the estimated balance of $2 132.7 million as at 30 June 2005, as shown in Chapter 7 of Budget Paper No 1 Budget Overview 2004-05.
Agencies will contribute $68.6 million to the Superannuation Provision Account in the Special Deposits and Trust Fund in 2004-05, which is included in the Outputs expenditure of the individual agencies. The Superannuation Provision Account was established in July 1994 to provide for the superannuation benefits of defined benefit scheme members employed in inner-Budget agencies and by some Statutory Authorities. These agencies and authorities are currently required to pay into the Superannuation Provision Account at a rate determined by the Treasurer, on the advice of the State Actuary. For most agencies and authorities, this rate is currently 11 per cent of salary. In addition, inner-Budget agencies are also required to pay into the SPA a 'gap' payment of two per cent of salary in respect of each permanent employee appointed after 15 May 1999, notwithstanding that these employees are not members of the Retirement Benefits Fund defined benefit scheme. The employer share of pensions and lump sum benefits payable to retiring Retirement Benefits Fund defined benefit scheme members in these agencies and authorities are reimbursed to the Retirement Benefits Fund Board from the Superannuation Provision Account. These payments are made notwithstanding that they may relate to periods of employment prior to the establishment of the Superannuation Provision Account (1 July 1994). The balance of the Superannuation Provision Account is
92 Chapter 4: Finance-General anticipated to increase in 2003-04 by $25.5 million above the amount originally estimated in the 2003-04 Budget. The anticipated balance of the Account at 30 June 2004 is now $689.6 million, with a projected balance of $793.1 million as at 30 June 2005.
Further information in relation to the State's superannuation liability can be found in Chapter 7 of Budget Paper No 1 Budget Overview 2004-05. Output 2.4 – Other
This Output provides for the payment of allowances under the Long Service Leave (State Employees) Act 1994 of $70 000 in 2004-05 ($70 000 in 2003-04) for certain minor authorities, which have accrued employee entitlements for which no provision has been made. Generally, this item provides for a portion of accrued Long Service Leave carried over by employees when working for a government department that has subsequently become a State authority. Output 2.5 – Provision for Wage Increases
This Output makes provision of $13.0 million in 2004-05 ($13.0 million in 2003-04) for increased salary and wage expenses above the current funding provided to agencies.
This Output is similar to the Treasurer's Reserve in that the additional wage costs are met from agency Outputs and offset by savings in this Output.
Output Group 3: Government Businesses Description
This Output Group provides for a general contribution to the operating costs of the State Fire Commission, a contribution to the operating cost of the Forest Practices Board, a provision for the Consolidated Fund contribution toward fire fighting costs incurred by Forestry Tasmania, funding for projects under the Helsham Agreement administered by Forestry Tasmania and payments to TT-Line Company Pty Ltd representing the Government's funding of interest payments on half the debt associated with the purchase by TT-Line during 2002-03 of Spirits of Tasmania I and II. The Finance-General Chapter in Budget Paper No 2 Operations of Government Departments 2003-04 originally included an estimate of $44.0 million for annual grant contributions to TT-Line to meet the interest costs and extinguish half the debt associated with the purchase by TT-Line during 2002-03 of Spirits of Tasmania I and II. However, the accounting treatment of this payment has since been revised. The contribution in respect of principal debt repayments is now recorded as an equity contribution. In accordance with Generally Accepted Accounting Principles, equity contributions are not recorded as an operating expense in the Statement of Financial Performance, but rather are reflected as an increase in the balance of equity investments in the Statement of Financial Position and included in cash payments under Net Purchase of Investments in the Statement of Cash Flows. The original 2003-04 Budget has been recast to reflect comparable estimates. The estimated expense for payments to TT-Line within Output Group 3 now reflects only the estimated payment in respect of interest costs in 2003-04 and 2004-05.
Chapter 4: Finance-General 93 Table 4.4: Summary Financial Information - Output Group 3 2003-04) 2004-05) Government Businesses Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 48 586) 49 717) 2.3) Other Revenue2 25 795) 119 860) 364.7) TOTAL 74 381) 169 577) 128.0)
OPERATING EXPENSES Grants and Transfer Payments 13 075) 12 107) (7.4) Supplies and Consumables TOTAL 13 075) 12 107) (7.4)
EXPENSE BY OUTPUT 3.1 Forestry Tasmania3 2 736) 4 761) 74.0) 3.2 State Fire Commission4 3 850) 3 050) (20.8) 3.3 TT-Line5 6 489) 4 296) (33.8) TOTAL 13 075) 12 107) (7.4)
Notes: 1. The 2004-05 Consolidated Fund Annual Appropriation for this Output Group represents the Government's contribution to Forestry Tasmania for the operations of the Forest Practices Board of $667 000 ($651 000 in 2003-04), a provision of $2.0 million for funding of Forestry Tasmania fire fighting costs ($85 000 in 2003-04), a contribution to the State Fire Commission of $3.1 million ($3.9 million in 2003-04) and a total contribution of $44.0 million ($44.0 million in 2003-04) to the TT-Line for the purchase of one of two vessels to replace the original Spirit of Tasmania. The contribution to TT-Line in respect of principal debt repayments is recorded as an equity contribution, and consequently is not reflected in Output 3.3 or in the expenditure reported in the Statement of Financial Performance. 2. Other Revenue of $119.9 million ($25.8 million in 2003-04) reflects an estimated gain in the value of the Government's equity interest in the Public Non-Financial Corporations Sector. Previously, a number of agencies recognised the ownership interest in State-owned Companies (SOCs), on the basis of the shares being held by the relevant Minister. Equity investments in SOCs were therefore reported within the Departments of Infrastructure, Energy and Resources (DIER), Tourism, Parks, Heritage and the Arts (DTPHA) and Finance-General. The Government's ownership interest in Government Business Enterprises (GBEs) was not previously recognised in agency financial statements on the basis that there is no share certificate, notwithstanding that the ownership relationship is primarily the same as for SOCs. In the interests of harmonising Government Finance Statistics (GFS) and Australian Accounting Standards (AAS), and improving the transparency of departmental reporting, from 2003-04, an ownership interest in all Government businesses (both GBEs and SOCs) is recognised for reporting under AAS. This ownership interest is recognised within the Finance-General Division. The initial recognition of the equity investment in GBEs, measured according to the carrying amount of net assets of the GBEs, has been credited directly to equity in accordance with Generally Accepted Accounting Principles. The estimated gain in value of the Government's ownership interest in GBEs and SOCs between 30 June 2004 and 30 June 2005, is included as revenue in the Statement of Financial Performance and treated as an increase in equity investments in the Statement of Financial Position. 3. The estimated 2004-05 payment to Forestry Tasmania of $4.7 million ($2.7 million in 2003-04) represents a contribution to the cost of fighting wild fires of $2.0 million ($85 000 in 2003-04), a contribution to the Forest Practices Board of $667 000 ($651 000 in 2003-04) and a provision for expenditure by Forestry Tasmania of Helsham Agreement funding of $2.1 million ($2.0 million in 2003-04) for intensive forest management projects. Details of expenditure of Helsham funds are provided in the Annual Report of Forestry Tasmania. 4. This Output provides for the State's contribution to the budget of the State Fire Commission of $3.05 million in 2004-05 ($3.85 million in 2003-04).
94 Chapter 4: Finance-General 5. This Output provides for funding of $4.3 million ($6.5 million in 2003-04) for interest costs on half the debt associated with the purchase by TT-Line during 2002-03 of Spirits of Tasmania I and II. The remainder of the contribution to TT-Line, in respect of principal debt repayments, is now recorded as an equity contribution. In accordance with Generally Accepted Accounting Principles, equity contributions are not recorded as an operating expense in the Statement of Financial Performance, but rather are reflected as an increase in the balance of equity investments in the Statement of Financial Position and included in cash payments under Net Purchase of Investments in the Statement of Cash Flows. The original 2003-04 Budget has been recast to reflect comparable estimates.
Output 3.1 – Forestry Tasmania Government Contribution The Forests Practices Board encourages sound forest management on all lands and sets environmental standards for roads, harvesting, reforestation and maintenance of forests. Funds provided are to cover the costs of the Chief Forest Practices Officer and the operations of the Forest Practices Board. The amount provided in 2004-05 of $667 000 has been increased by $16 000 over the 2003-04 Budget estimate to reflect indexation to meet salary and general cost increases.
An increased provision of $2.0 million has been made available in 2004-05 for fighting wild fires ($85 000 in 2003-04). This funding will be used in the event of a high fire fighting season, if the cost to Forestry Tasmania exceeds the 10 year moving average of variable costs plus any financial reserves set aside from previous years. The provision for Forestry Tasmania fire fighting costs has been increased significantly as the year to date expense incurred is quite high due to the number of fires around the State, and actual fire fighting costs have consistently exceeded the budgeted provision of $85 000 over the past several years.
In November 1988, the Commonwealth Government agreed to provide $50.0 million for Intensive Forest Management, Education and Training, and Forestry Tasmania and Industry sunk costs under the Lemonthyme and Southern Forests Agreement (known as the Helsham Agreement). No further funding from the Commonwealth Government is anticipated. An estimated $2.0 million to be expended during 2003-04 did not occur. Provision has been made for the drawdown of $2.1 million from this Account by Forestry Tasmania during 2004-05 for intensive forest management expenditures. Details concerning expenditure of Helsham funds are reported in the Annual Report of Forestry Tasmania. Output 3.2 – State Fire Commission
A provision has been made for funding of $3.05 million for the State Fire Commission in 2004-05 ($3.85 million in 2003-04). Of this amount, $240 000 ($240 000 in 2003-04) has been appropriated as a contingent provision for funding excess wild fire fighting costs. The 2003-04 Budget estimated that revenue received by the State Fire Commission from Insurance Fire Levy receipts would increase by approximately $3.3 million due to increasing property values. The increased revenue was a result of Tasmania's strong growth in the property market. Having regard to the increased Levy receipts, the 2004-05 Consolidated Fund contribution to the State Fire Commission has been reduced. Output 3.3 – TT-Line
A provision has been made for funding annual contributions to TT-Line over the four years from 2002-03 to 2005-06 to meet the interest costs and extinguish half the debt associated with the purchase by TT-Line during 2002-03 of Spirits of Tasmania I and II. Only the funding in respect of interest costs is reflected in the Output expenses and Statement of Financial Performance of Finance-General. The remainder of the contribution to TT-Line, in respect of principal debt repayments, is now recorded as an equity contribution. In accordance with Generally Accepted Accounting Principles, equity contributions are not recorded as an
Chapter 4: Finance-General 95 operating expense in the Statement of Financial Performance, but rather are reflected as an increase in the balance of equity investments in the Statement of Financial Position and included in cash payments under Net Purchase of Investments in the Statement of Cash Flows. The original 2003-04 Budget has been recast to reflect comparable estimates.
Output Group 4: Miscellaneous Description
This Output Group meets whole-of-government expenditure that does not fall within the other Output Groups.
The major expenses within this Output Group relate to the Treasurer's Reserve, the Tasmanian Risk Management Fund, GST administration costs payable to the Australian Taxation Office, expenditure under the Structural and Performance Initiatives Program and management of the government light vehicle fleet and government owned and leased property portfolio.
The Treasurer's Reserve is an annual allocation included within Finance-General to meet unforeseen expenditure essential for the efficient financial management of the Government.
Table 4.5: Summary Financial Information - Output Group 4 2003-04) 2004-05) Miscellaneous Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 49 137) 48 414) (1.5) Reserved by Law2 10 000) 10 000) ....) Investment Income3 47) 5) (89.4) Sales of Goods and Services4 51 474) 55 137) 7.1) Proceeds from the Disposal of Assets5 26 000) 26 500) 1.9) TOTAL 136 658) 140 056) 2.5)
OPERATING EXPENSES Depreciation and Amortisation6 8 426) 8 426) ....) Grants and Transfer Payments7 10 850) 17 983) 65.7) Supplies and Consumables8 72 123) 73 004) 1.2) Other Expenses9 31 100) 37 028) 19.1) TOTAL 122 499) 136 441) 11.4)
EXPENSE BY OUTPUT 4.1 Structural and Performance Initiatives Program 7 792) 8 942) 14.8) 4.2 Treasurer's Reserve10 20 000) 20 000) ....) 4.3 Miscellaneous11 3 502) 12 306) 251.4) 4.4 Payment to Australian Tax Office: GST Administration12 13 500) 13 800) 2.2) 4.5 Tasmanian Risk Management Fund13 24 441) 28 322) 15.9) 4.6 Fleet Management Services14 39 935) 39 965) 0.1) 4.7 Property Management Services15 13 329) 13 106) (1.7) TOTAL 122 499) 136 441) 11.4)
96 Chapter 4: Finance-General Notes: 1. The 2004-05 Consolidated Fund Annual Appropriation for this Output Group of $48.4 million represents a contribution to the Structural and Performance Initiatives Program Account in the Special Deposits and Trust Fund of $8.0 million ($17.7 million in 2003-04), an amount contingently appropriated to the Treasurer's Reserve (section 11(2)(b), Public Account Act 1986), additional to the Reserved by law appropriation of $10.0 million ($10.0 million in 2003-04), funds to meet payments to the Australian Taxation Office for GST collection and compliance costs of $13.8 million ($13.5 million in 2003-04), an additional contribution of $5.0 million ($3.0 million in 2003-04) to the Tasmanian Risk Management Fund Account in the Special Deposits and Trust Fund, property management expenses of $1.8 million ($1.5 million in 2003-04) and other miscellaneous payments of $9.8 million ($3.0 million in 2003-04). Property management expenses of $1.8 million includes power and fuel of $932 000 ($932 000 in 2003-04), rates of $545 000 ($228 000 in 2003-04) and rent and other expenses of $353 000 ($353 000 in 2003-04). Miscellaneous payments includes an additional provision of $5.4 million in 2004-05 for compensation payments to victims of child abuse, an appropriation of $413 000 for costs arising as a result of the State and Local Government Financial Reform project, the printing of Government Gazettes and Acts of Parliament of $1.1 million ($1.1 million in 2003-04), funding of performance audits undertaken by the Tasmanian Audit Office of $1.2 million ($600 000 in 2003-04), revenue sharing with Victoria for TT-Line of $72 000 ($70 000 in 2003-04), National Taxation Equivalent Regime administration costs of $54 000 ($54 000 in 2003-04), payments relating to the West Coast Infrastructure Fund of $30 000 ($32 000 in 2003-04), maintenance expenses of $330 000 related to the optic fibre cable ($0 in 2003-04), subsidies on public bodies loans debt charges of $132 000 ($516 000 in 2003-04) and other miscellaneous payments (mainly ex-gratia payments of stamp duty) of $1.1 million ($1.1 million in 2003-04). 2. Reserved by Law reflects a statutory provision of $10.0 million ($10.0 million in 2003-04) for the Treasurer's Reserve as required by section 11(2)(a) of the Public Account Act 1986. 3. Investment Income of $5 000 ($47 000 in 2003-04) reflects income tax equivalents payable by taxable Local Government businesses, principally regional bulk water authorities, in accordance with competitive neutrality principles and obligations under the National Competition Policy agreement. The income tax equivalents collected are subsequently disbursed, as an expense under Output 4.3, to the participating councils which own the businesses, in accordance with the rules under which the businesses were established and at intervals agreed between the councils and the Treasurer. The 2003-04 Budget estimate included income tax equivalents payable by taxable Local Government businesses of $5 000 plus an estimated increase of $42 000 in accrued interest receivable on public bodies loans. 4. Sales of Goods and Services of $55.1 million is comprised of agency contributions to the Tasmanian Risk Management Fund of $29.8 million ($26.3 million in 2003-04), property lease and rental receipts of $10.7 million ($11.3 million in 2003-04) and vehicle lease and management payments received from agencies of $14.6 million ($13.9 million in 2003-04). 5. Proceeds from the Disposal of Assets of $26.5 million ($26.0 million in 2003-04) reflects estimated gross proceeds from the disposal of motor vehicles. 6. Depreciation and Amortisation of $8.4 million includes estimated depreciation on motor vehicles of $7.9 million ($7.9 million in 2003-04) and estimated depreciation on government owned office buildings of $526 000 ($526 000 in 2003-04). 7. Grants and Transfer Payments of $17.9 million includes the allocation of $8.9 million ($7.8 million in 2003-04) to agencies from the Structural and Performance Initiatives Program, estimated compensation payments of $5.4 million to victims of child abuse ($0 in 2003-04), payments of $1.2 million to the Tasmanian Audit Office to undertake performance audits ($600 000 in the original 2003-04 Budget estimates, with a revised estimate of $987 000 in 2003-04), payments relating to the West Coast Infrastructure Fund of $30 000 ($32 000 in 2003-04), expenditure on behalf of other agencies for power and fuel in government office accommodation of $932 000 ($932 000 in 2003-04), costs of $413 000 ($0 in 2003-04) as a result of the State and Local Government Financial Reform project and other miscellaneous transfer payments of $978 000 ($978 000 in 2003-04). The increase in Grants and Transfer Payments reflects a $1.1 million increase in the allocation to agencies from the Structural and Performance Initiatives Program, the provision of $5.4 million in compensation for victims of child abuse, an increase of $556 000 in payments to the Tasmanian Audit Office for performance audits, and payments of $413 000 in revenue equalisation payments to Local Government Authorities and additional costs to agencies arising as a result of the State and Local Government Financial Reform project. 8. Supplies and Consumables expenses of $73.0 million include Treasurer's Reserve expenses of $20.0 million, motor vehicle registration expenses of $965 000, payment to the Australian Taxation Office for GST collection and compliance costs of $13.8 million, Tasmanian Risk Management Fund claims and administration costs of $24.8 million, property management expenses of $11.6 million, optic fibre cable maintenance expenses of $330 000 and other miscellaneous payments of $1.3 million. Tasmanian Risk Management Fund supplies and consumables expenses of $24.8 million ($24.4 million in 2003-04) comprise cash claims and administration payments. The estimated increase of $3.4 million, based on actuarial advice, in the claims liability of the Tasmanian Risk Management Fund between 30 June 2004 and 30 June 2005 is recorded as Other Expenses. Property management expenses of $11.6 million ($11.9 million in 2003-04) includes property lease and rental payments of $10.7 million ($11.3 million in 2003-04), rates payments of $545 000 ($228 000 in 2003-04) and rent and other expenses of $353 000
Chapter 4: Finance-General 97 ($353 000 in 2003-04). Miscellaneous payments of $1.3 million ($1.4 million in 2003-04) includes the printing of Government Gazettes and Acts of Parliament of $1.1 million ($1.1 million in 2003-04), payments to Victoria for TT-Line revenue sharing of $72 000 ($70 000 in 202-03), National Taxation Equivalent Regime administration costs of $54 000 ($54 000 in 2003-04), income tax equivalents payable by taxable Local Government businesses of $5 000 ($5 000 in 2003-04), payments relating to the Mount Lyell Closure Account of $30 000 ($30 000 in 2003-04) and other miscellaneous payments of $100 000 ($100 000 in 2003-04). 9. Other Expenses of $37.0 million ($31.1 million in 2003-04) reflects the estimated written down value of motor vehicles at disposal of $31.0 million, plus accrual expenses of $6.0 million associated with the recognition of a liability for cash balances held in certain accounts within the Finance-General Division. 10. The Treasurer's Reserve is an annual allocation to meet unforeseen expenditure essential for the efficient financial management of the Government. 11. Miscellaneous includes a provision for funding compensation payments to victims of child abuse, funding of costs arising from the State and Local Government Financial Reform project, the funding of value for money audits undertaken by the Tasmanian Audit Office, the printing of Government Gazettes and Acts of Parliament, and a number of other miscellaneous payments. 12. Payment to the Australian Taxation Office represents the State's contribution to the Commonwealth for GST collection and compliance costs. 13. Tasmanian Risk Management Fund reflects claims costs, payments to the Fund Administration Agent and administrative costs. The increase in expenses largely reflects an estimated increase, based on actuarial estimates, in the outstanding liability of the Fund between 30 June 2004 and 30 June 2005. 14. Fleet Management Services includes the written down value of vehicles at disposal, depreciation expense and the payment of registration costs for the government light vehicle fleet. 15. Property Management Services reflects lease payments to commercial property owners and power, fuel, rates and rent expenses relating to the management of the government owned and leased office accommodation portfolio.
Comments
The major items of expenditure under the Miscellaneous Output Group are expenditure under the Structural and Performance Initiatives Program, a provision for funding compensation payments to victims of child abuse, the State's contribution toward meeting the national cost of administering the GST, which is payable to the Australian Taxation Office, the expenditure of the Tasmanian Risk Management Fund and management of the government light vehicle fleet and the government owned and leased property portfolio. Other minor items of expenditure under this Output relate to the funding of value for money audits undertaken by the Tasmanian Audit Office and the printing of Government Gazettes and Acts of Parliament. Output 4.1 – Structural and Performance Initiatives Program
The Structural and Performance Initiatives Program (SPIP) Account within the Special Deposits and Trust Fund was established in the 1995-96 Budget to provide agencies with access to funds to implement structural improvement proposals, particularly those related to information technology developments, which have the potential to result in significant savings and/or provide for a more efficient allocation of resources.
In 2003-04, a new appropriation of $17.7 million was made to the SPIP Account and a further $8.0 million is appropriated in 2004-05. The funds will be expended over a number of years on major agency information technology projects.
Anticipated expenditure of $8.9 million from this Account has been included in the 2004-05 Budget ($7.8 million in 2003-04). These funds will be allocated to specific agencies to fund major projects including the redevelopment of the Motor Registry System and the Monetary Penalties Enforcement Project.
The projects to which funding from the SPIP has been allocated in 2004-05 are:
• Whole-of-government IT Projects - $2.5 million to improve government IT systems such as the Liquor and Gaming information system;
98 Chapter 4: Finance-General • Motor Registry Project - $2.5 million to redevelop the Motor Registry System; and
• Monetary Penalties Enforcement Project - $3.9 million to redevelop the monetary penalties system. Output 4.2 – Treasurer's Reserve
An amount of $20.0 million ($20.0 million in 2003-04) has been provided in the Treasurer's Reserve in 2004-05 to meet expenditure which could not be foreseen at the time of developing the 2004-05 Budget and which is essential for efficient financial management.
Amounts spent from this Output in 2004-05 will be included in Output expenditure across government departments, and subsequently offset by savings in this account.
The Treasurer's Reserve comprises:
• a Statutory Provision of $10.0 million, which is Reserved by Law and requires no further appropriation (section 11(2)(a), Public Account Act 1986); and
• an additional amount contingently appropriated in the annual Consolidated Fund Appropriation Act (section 11(2)(b), Public Account Act). This contingent appropriation for both 2003-04 and 2004-05 is $10.0 million.
In addition, the Treasurer's Reserve can be supplemented by:
• any surplus or saving in a department's Recurrent Services appropriation which has not been utilised to fund a shortfall within that appropriation (section 11(2)(c), Public Account Act);
• additional Commonwealth funds which become available after the Budget is finalised (section 11(2)(d), Public Account Act); and
• net additional recurrent revenue generated within the Consolidated Fund during a financial year which is in excess of the Budget estimate (section 11(2)(e), Public Account Act). Output 4.3 Miscellaneous
Items of expenditure under this Output relate to a provision for compensation payable to child abuse victims, an appropriation for revenue equalisation payments and additional costs arising as a result of State and Local Government Financial Reform, funding for value for money audits undertaken by the Tasmanian Audit Office, the printing of Government Gazettes and Acts of Parliament, and a number of other miscellaneous payments. Compensation Payments to Victims of Child Abuse In July 2003, following allegations of abuse from a former State ward, the Government undertook to provide redress and support to victims of past abuse in State care. The Tasmanian Ombudsman and the Secretary of the Department of Health and Human Services subsequently entered into an agreement to conduct a review of claims from adults who had been allegedly abused as children in State care. In January 2004, the Ombudsman advised that her final report would not be available until June 2004. The delay in finalising the review and report in turn delayed the determination of compensation payments until 2004-05. The initial 2003-04 funding provision has therefore been reallocated, and a provision of $5.4 million created within the Finance-General Division 2004-05 Budget allocation for payments of compensation to victims of child abuse.
Chapter 4: Finance-General 99 State and Local Government Financial Reform - Revenue Equalisation Payments In 2001, the Premier's Local Government Council endorsed a project to reform State and Local Government financial relations to simplify and make more transparent the financial relationships between the two levels of government. The reforms encompassed reciprocal taxation, including the full application of State Government taxes to Local Government and council rates to State Government Crown properties. While the State and Local Government Financial Reform arrangements were pursued in a broadly revenue neutral manner, the anticipated costs associated with the reforms will result in higher costs for departments with significant holdings of Crown properties. Departments have been fully supplemented for the net additional costs of the reforms. The reforms will also result in higher costs for a small number of Local Government Authorities with a low level of Crown properties in their municipality. Payments will be made by the Government to two Local Governments to ensure that no Local Government Authority is worse off as a result of the reforms. Overall, there has been a net gain to Local Government as a whole and a net cost to the State Government of approximately $3.5 million arising from the reforms. Tasmanian Audit Office Expenses incurred for performance audits and other whole-of-government activities conducted by the Tasmanian Audit Office are met from Finance-General. It is estimated that expenses totalling $1.2 million will be incurred for assessment of whole-of-government activities during 2004-05.
The funding is not used by the Auditor-General to conduct financial audits in accordance with the Financial Management and Audit Act 1990. Printing – Tasmanian Government Gazette and Acts of Parliament A component of expenditure ($1.1 million in both 2003-04 and 2004-05) under this Output is incurred for printing the Tasmanian Government Gazette, special gazettes and awards, and the printing and binding of Acts of Parliament, subordinate legislation and other Government publications for sale.
Fifty per cent of the proceeds from the sale of the Government Gazette, Acts and subordinate legislation are subsequently paid into the Consolidated Fund. Optic Fibre Cable Maintenance Costs A provision of $330 000 has been made in 2004-05 and future years ($0 in 2003-04) for maintenance costs associated with the optic fibre cable.
In May 2003 the Government purchased the Optic Fibre Cable Backbone from Tas21 Pty Ltd. Under the terms of the acquisition of the cable, the Government was assigned a number of agreements, including an operations and maintenance agreement that had previously been negotiated between Downer Connect Pty Ltd (Downer) and Tas21 Pty Ltd (the cable owner).
Under the operations and maintenance agreement as assigned to the Government, Downer is required to provide operations, repair and maintenance services to the Government as the owner of the Optic Fibre Cable Backbone. Payments under the agreement are based on Downer's actual annual costs. Public Bodies Assistance Act 1971: Subsidy on Debt Charges
This item, previously reported in the Grants and Subsidies Output Group, provides for the payment of subsidies to public bodies to assist in meeting the debt charges on loans raised for the purposes of the Public Bodies Assistance Act 1971. Details of subsidies are provided in the Annual Report of the Department of Treasury and Finance. A moratorium on new loans under the Act continues to apply. The reduction in the estimated cost of this item between 2003-04 and 2004-05 from $516 000 to $132 000 reflects the extinguishment of a number of subsidised public bodies loans.
100 Chapter 4: Finance-General During 2000-01, a review of the future management of the public bodies loans portfolio was initiated by Treasury. The review took into consideration recommendations from the Auditor-General's Special Report No 36 Collection of Receivables and Loans in Government Departments, issued in June 2001. The Auditor-General, while recognising that the loan portfolio is well managed, commented on the way in which the loans were structured, and recommended extinguishing loans which were more than 90 per cent subsidised.
The review, which was completed in December 2001, supported the finding of the Auditor-General, and found that the public bodies loan portfolio reflects a past process that ceased in 1991. No loans had been made in over 10 years and a number of alternate Government funding options are now available to meet community infrastructure needs.
The Treasurer subsequently endorsed the final recommendations of the review and agreed to:
• extinguish all loans subsidised greater than 90 per cent;
• offer community groups an incentive, of 10 per cent of the net value of the loan, to repay their loans, with a $1 000 minimum incentive; and
• offer councils the opportunity to redeem loans at face value without penalty.
Implementation of the above recommendations in late 2001-02 reduced the number of outstanding public bodies loans from 169, as at 30 June 2001, to 37 at 30 June 2002. As a result of further acceptance by community groups and councils of the incentives offered for early loan repayment, the number of outstanding public bodies loans has continued to decrease, with an estimate of a remaining eight outstanding loans as at 30 June 2004.
The 2004-05 Budget estimate has been reduced in line with the impact of the extinguishment and repayment of public bodies loans. Other Miscellaneous Payments It is estimated that total expenses of $7.5 million will be incurred in 2004-05 ($1.0 million in 2002-03) in relation to other whole-of-government miscellaneous payments, including payments relating to:
• Revenue Sharing with Victoria for TT-Line of $72 000 ($70 000 in 2003-04);
• National Taxation Equivalent Regime Administration Costs of $54 000 ($54 000 in 2003-04);
• West Coast Infrastructure Fund of $30 000 ($32 000 in 2003-04);
• Mount Lyell Closure Account of $30 000 ($30 000 in 2003-04);
• Local Government Tax Equivalent Account of $5 000 ($5 000 in 2003-04);
• Miscellaneous Payments (mainly ex-gratia payments of stamp duty) of $1.1 million ($1.1 million in 2003-04); and
• Expenses of $6.0 million associated with the recognition of a liability for cash balances held in certain accounts within the Finance-General Division.
Chapter 4: Finance-General 101 Output 4.4 Payment to Australian Taxation Office: GST Administration
Under the Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations, the states and territories agreed to meet the costs of the Australian Taxation Office in administering the goods and services tax (GST). The states and territories have agreed to share the GST administration costs on a per capita basis.
The State's contribution to collection and compliance costs for 2004-05 is estimated at $13.8 million ($13.5 million for 2003-04). Output 4.5 Tasmanian Risk Management Fund
The Tasmanian Government established the Tasmanian Risk Management Fund (TRMF) on 1 January 1999. On 1 July 2001, the Tasmanian State Service Workers' Compensation Scheme merged with the Fund. The Scheme, which was a self-insurance arrangement, was established in 1989, following the enactment of the Workers' Rehabilitation and Compensation Act 1988, to meet the workers' compensation liabilities of participating agencies. The Scheme operated on a fully funded basis and the reserves accumulated to meet workers' compensation liabilities were transferred to the Fund on 1 July 2001. From 1 July 2001, all outstanding liabilities of the Scheme are being met from the Fund. The Fund will also meet the cost of all future workers' compensation claims.
In addition, the expanded Fund meets the costs associated with all other risk, including property and business interruption and medical negligence, through a mixture of insurance and self-insurance. Agencies are also subject to an excess, whereby they meet a proportion of the cost of each claim in return for a lower premium. In this way, there are four levels of responsibility for meeting the cost of claims under the Fund:
• by insurance from the private sector;
• by a combination of insurance from the private sector and pooled agency contributions;
• by self-insurance through the Fund, from pooled agency contributions; and
• by agencies, in the form of an excess.
The estimated expenses of $28.3 million for 2004-05 ($24.4 million in 2003-04) is comprised of claims costs of $21.1 million ($18.5 million in 2003-04), payments to the Fund Administration Agent of $1.8 million ($1.8 million in 2003-04), administrative costs of $2.0 million ($1.5 million in 2003-04), plus the estimated increase of $3.4 million, based on actuarial advice, in the claims liability of the Tasmanian Risk Management Fund between 30 June 2004 and 30 June 2005. Output 4.6 Fleet Management Services
All direct transactions associated with whole-of-government light vehicle fleet management activities are recorded in the Government Car Fleet Account within the Special Deposits and Trust Fund. Revenue in the Government Car Fleet Account is derived from the sale of vehicles and receipts from Commonwealth Fleet Lease (CFL) Pty Ltd of lease, registration and insurance payments by agencies, net of the CFL management fee. Expenditure from the Government Car Fleet Account includes the purchase of motor vehicles and payment of registration and insurance costs for the vehicle fleet.
Estimated expenses for this Output in 2004-05 of $39.9 million ($39.9 million in 2003-04) include motor vehicle registration expenses of $965 000 ($935 000 in 2003-04), estimated depreciation on motor vehicles of $7.9 million ($7.9 million in 2003-04) and the estimated written down value of motor vehicles at disposal of $31.0 million ($31.1 million in 2003-04).
102 Chapter 4: Finance-General Output 4.7 Property Management Services
Transactions associated with the management of the government owned and leased property portfolio include:
• expenditure on behalf of other agencies for power and fuel costs in office accommodation;
• rates associated with government owned office accommodation;
• costs associated with the management of leased accommodation and the Government's office accommodation portfolio; and
• the collection of recoveries and payment of costs associated with the rental of both government owned and leased office accommodation by agencies.
The first three activities are funded from the Consolidated Fund, whilst expenses and revenues associated with lease management are transacted through the Agency Accommodation Charges Account in the Special Deposits and Trust Fund. The account essentially operates as a clearing account, with rent collections from agencies receipted to the account, and payments made from the account to commercial property owners (in the case of leased accommodation) or to the Crown Lands Administration Fund (in the case of government owned accommodation).
It is estimated that 2004-05 expenditure for Property Management Services will amount to $13.1 million ($13.3 million in 2003-04), including property lease and rental payments of $10.7 million ($11.3 million in 2003-04), expenditure on behalf of other agencies for power and fuel in government office accommodation of $932 000 ($932 000 in 2003-04), rates payments of $545 000 ($228 000 in 2003-04), rent and other expenses of $353 000 ($353 000 in 2003-04) and estimated depreciation on government owned office buildings of $526 000 ($526 000 in 2003-04).
Chapter 4: Finance-General 103 Grants and Subsidies
Finance-General administers a wide range of grant and subsidy programs with links to all of its Output Groups.
Funding is provided for various types of expenditure under this classification, including payments to Local Government to provide pensioner rates remissions, grants to various organisations in respect of State taxation and payments to public bodies for subsidies on debt charges. Also, since the implementation of the goods and services tax, the Tasmanian Government continues to provide subsidies for petroleum and liquor products, similar to those that existed as part of the previous safety net arrangements.
Table 4.6 summarises the Grants and Subsidies for Finance-General. A description of each grant or subsidy follows the table.
Table 4.6: Grants and Subsidies Financial Summary 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) REVENUE Revenue from Government Annual Appropriation1 90 454) 87 617) (3.2) Reserved by Law2 21 667) 21 654) (0.1) Other3 2 100) ....) (100.0) Other Revenue4 1 370) 1 378) 0.6) TOTAL 115 591) 110 649) (4.3)
EXPENSES Commonwealth Contribution for Extension of Pensioner Concessions 475) 475) ....) Equalisation Payments and Subsidies 14 200) 14 400) 1.4) First Home Owners Scheme 21 500) 15 894) (26.1) Local Government: Grants 49 031) 51 255) 4.5) Other Grants and Subsidies5 1 298) 298) (77.0) Payments under Local Government (Rates and Charges Remissions) Act 1991 14 061) 14 388) 2.3) Payroll Tax Assistance 6 220) 5 465) (12.1) Tasmanian Community Fund6 4 270) 4 810) 12.6) Wheat Freight Subsidy 1 200) 1 200) ....) TOTAL 112 255) 108 185) (3.6)
Notes: 1. The 2004-05 Consolidated Fund Annual Appropriation of $87.6 million represents funds for the payment of petroleum and liquor subsidies of $14.4 million, the First Home Owners Grants Scheme of $15.9 million, Local Government Grants of $51.2 million, Other Grants and Subsidies of $298 000, Payroll Tax Assistance of $5.4 million, together with Commonwealth assistance to provide a non-Budget sector agency, TT-Line, with funds of $475 000 to maintain existing concession arrangements following the extension by the Commonwealth of eligibility for the Pensioner Concession Card. The balance of the Commonwealth assistance for this purpose is absorbed within the outlays of General Government Sector agencies providing concessions.
104 Chapter 4: Finance-General 2. Reserved by Law of $21.7 million reflects payments under the Local Government (Rates and Charges Remissions) Act 1991 of $14.4 million, payments under the Beauty Point Landslip Act 1970 of $20 000, payments under the Rosetta Landslip Act 1992 of $50 000, contributions to the Tasmanian Community Fund Account in the Special Deposits and Trust Fund of $4.7 million and duty loans granted under the Duties Act 2001 of $2.5 million. Contributions to the Tasmanian Community Fund Account, based on section 34 of the Trust Bank Sale Act 1999, are estimated at $4.7 million in 2004-05 ($4.4 million in 2003-04). Estimated cash payments from the Tasmanian Community Fund are estimated at $4.8 million, resulting in a decrease in the Fund balance between 30 June 2004 and 30 June 2005 of $278 000. Duty loans of $2.5 million and the estimated decrease in the Tasmanian Community Fund Account of $278 000 are not reflected in the expenditure reported in the Statement of Financial Performance. As a capital transaction and intra-entity transaction, these items are included in the Statement of Financial Position and the Statement of Cash Flows. 3. Other Revenue from Government in 2003-04 represented an amount of $2.1 million carried forward from the 2002-03 Consolidated Fund appropriation, under section 8A(2) of the Public Account Act 1986, for payments under the First Home Owners Scheme which were disbursed in 2003-04. No carry forward is budgeted in 2004-05. 4. Other Revenue of $1.4 million includes the receipt of $1.2 million from the Commonwealth under the Wheat Freight Subsidy Agreement, a contribution of $100 000 from the Glenorchy City Council and the Commonwealth Bank of Australia in relation to the Rosetta landslip, rental receipts of $58 000 in relation to Rosetta and Berriedale landslip properties, and refunds of Tasmanian Community Fund grants of $20 000. 5. Other Grants and Subsidies expenditure of $298 000 includes financial assistance to child care centres of $120 000, payment of $8 000 to the Municipality of Sorell to subsidise interest costs on borrowings under the Midway Point Improvement Act 1975, payments under the Beauty Point Landslip Act 1970 of $20 000 and payments under the Rosetta Landslip Act 1992 of $150 000. The estimated expenditure has decreased in 2004-05 due to the cessation of mineral royalty rebates to Copper Mines of Tasmania of $1.0 million. 6. Tasmanian Community Fund expenditure of $4.8 million ($4.3 million in 2003-04) reflects the anticipated payment of grants in 2004-05, excluding reserves to be carried forward into future years.
Commonwealth Contribution for Extension of Pensioner Concessions
The purpose of this item is to provide non-Budget sector agencies with funds to cover the additional cost of maintaining existing concession arrangements following the extension by the Commonwealth of eligibility for the Pensioner Concession Card. The balance of the Commonwealth assistance for this purpose is absorbed within the outlays of General Government sector agencies providing concessions. Equalisation Payments and Subsidies
The purpose of this item is to provide funds for the payment of petroleum and liquor subsidies. The subsidies replace those that were in place as part of the safety net arrangements, which ceased on 30 June 2000.
The following subsidies are provided:
• 15 per cent of the pre-tax wholesale value of Tasmanian wine cellar door sales;
• 15 per cent of the pre-tax wholesale value of Tasmanian produced cider with an alcoholic content not exceeding 6.5 per cent;
• 1.95 cents per litre (cpl) for petrol; and
• 1.99 cpl for on-road diesel.
The aggregate cost of providing subsidies in 2004-05 is expected to be $14.4 million ($14.2 million in 2003-04) including $1.1 million for cider and wine ($900 000 in 2003-04), $9.5 million for petroleum ($9.5 million in 2003-04) and $3.8 million for on-road diesel ($3.8 million in 2003-04).
Chapter 4: Finance-General 105 First Home Owners Grant Scheme (FHOGS)
As part of the Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations (IGA), the states and territories agreed to establish, fund and administer a first home owners grant scheme, which is designed to offset the impact of the introduction of the goods and services tax (GST). The FHOGS commenced on 1 July 2000. First home purchasers who meet the eligibility criteria are entitled to a $7 000 grant.
In addition to this ongoing scheme, on 9 March 2001 the Commonwealth Government announced an additional $7 000 grant for first homeowners who build their first home or purchase a new and previously unoccupied home. The additional grant is available to first home owners who:
• entered into a contract between 9 March 2001 and 31 December 2001 inclusive to build a new and previously unoccupied home; and
• met the eligibility criteria for the original grant.
On 9 October 2001, the Prime Minister announced variations to the terms and conditions of the additional grant, which was scheduled to cease on 31 December 2001. From 1 January 2002 until 30 June 2002 inclusive, the additional grant was reduced to $3 000. In addition, the conditions for commencement and completion of the construction or purchase of a new but previously unoccupied home were changed. Whilst the additional grant has now ceased, payments may be required to be made for several years in relation to previously approved grants.
It is estimated that the cost of providing FHOGS grants will be $15.9 million in 2004-05, a decrease of $5.6 million below the original 2003-04 Budget estimate of $21.5 million (the estimated Budget outcome for FHOGS grants in 2003-04 is $19.4 million). Local Government Grants
The estimated entitlement from the Commonwealth for Local Government Grants is comprised of two components: general purpose funding and identified local road funds. Under the Commonwealth Local Government (Financial Assistance) Act 1995, the Commonwealth Government each year provides an amount to the states for general purpose grants to Local Government. The distribution of these funds between councils is on the basis of recommendations made by the State Grants Commission.
Expenditure under this item is equal to Commonwealth payments to the State for Local Government. While the preliminary estimate for 2004-05 is $51.2 million ($49.0 million in 2002-03), the final level of the 2004-05 grant will depend upon the Consumer Price Index outcome for the year to March 2005 and final estimates of population figures as at 31 December 2004. Other Grants and Subsidies Child Care Centres - Grants This grant payment provides financial assistance, estimated at $120 000 in 2004-05 ($120 000 in 2003-04), to child care centres through the provision of a grant equivalent to their payroll tax liability. The allocation for 2004-05 reflects the estimated payrolls of the child care centres for the year. Estimates are based on projected wages of the centres for the relevant year.
106 Chapter 4: Finance-General Beauty Point Landslip A contingency amount of $20 000 is provided in 2004-05 ($20 000 in 2003-04) for the purchase and demolition of properties which have suffered damage due to earth movement in the Beauty Point area, as defined by the Beauty Point Landslip Act 1970. Under the provisions of the Act, the Treasurer may, on the recommendation of the Beauty Point Advisory Committee, purchase or acquire land to which the above mentioned Act applies, that is, land subject to earth movement in the Beauty Point area. Rosetta Landslip: Financial Assistance The Government, together with the Glenorchy City Council and the Commonwealth Bank of Australia, provides financial assistance to property owners in the Rosetta Landslip Area where it is deemed by the Landslip Advisory Committee that:
• a dwelling on an affected property has become uninhabitable by virtue of earth movements; or
• an eligible owner who owned his or her affected property at the time it became an affected property is suffering, or is likely to suffer, special financial hardship by virtue of actual or potential earth movements.
The landslip now appears to have been stabilised and all the properties eligible for assistance under the first category above have been purchased. The assistance package is therefore provided to property owners who have been unable to sell and are either taking up employment elsewhere or have demonstrated financial hardship. There is no way of predicting the number of applicants or actual cost of claims under this item for any year. In the absence of any additional information, the estimated 2004-05 payments of assistance have been maintained at the 2003-04 level of $150 000, comprising the Government's contribution of $50 000 and equal contributions of $50 000 from the Glenorchy City Council and the Commonwealth Bank of Australia. Mineral Royalties – Copper Mines of Tasmania The current mineral royalty regime was approved in August 1997 following negotiations with the mining industry. Under the agreement, royalty rates progressively increased over a number of years. The final increment came into effect from 1 July 2000 with royalty set at 1.6 per cent of net sales plus profit. Under a separate agreement between the Government and Copper Mines of Tasmania (CMT), industry assistance was provided to CMT via a rebate of mineral royalties paid. The agreement with CMT expired as at 31 March 2004. The expected royalty rebate to Copper Mines of Tasmania in 2003-04 was budgeted at $1.0 million, and no further provision has been included in the 2004-05 Budget or Forward Estimates for royalty rebates to CMT beyond 2003-04. Other Subsidies on Borrowings. An amount of $8 000 ($8 000 in 2002-03) has been provided for the Municipality of Sorell to subsidise interest costs on borrowings under the Midway Point Improvement Act 1975. A total amount of $3.5 million was borrowed by the Government at an interest rate of 9.765 per cent in 1975, on behalf of the Sorell Council, for the improvement of streets and the provision of a storm water drainage system at Midway Point.
The Government provides a 50 per cent interest subsidy for that portion of the outstanding principal used to fund the street improvement program (a subsidy in respect of drainage works is payable by the Land and Water Resources Division of the Department of Primary Industries, Water and Environment).
The loan is repayable in quarterly instalments over a period of 35 years. Capital repayments are also made when affected properties in the Midway Point area are sold or at the discretion of the Municipality of Sorell.
Chapter 4: Finance-General 107 Payments under the Local Government (Rates and Charges Remissions) Act 1991
In accordance with the provisions of the Local Government (Rates and Charges Remissions) Act 1991, local authorities are required to remit 30 per cent of rates and charges levied on eligible pensioners up to an annual maximum per dwelling, to be indexed annually by the Consumer Price Index from 1 July 2002. Local authorities are subsequently reimbursed from Finance-General. Eligible pensioners are residential property owners who hold a current Commonwealth Pensioner Concession Card.
The cost of providing pensioner remissions increases from year to year due to increases in rates and charges imposed by local authorities and growth in the total pool of eligible pensioners. From 1 July 2004, the maximum remission increases to $325 (from $318 in 2003-04). Payroll Tax Assistance
The purpose of this grant is to provide financial assistance to approved organisations and other organisations employing apprentices that are declared an approved trade or vocation. Approved organisations receive assistance by way of grants equivalent to their payroll tax liability and are entitled to assistance when their payroll expenditure exceeds the threshold limit, currently $1.01 million per annum. The allocation of $5.5 million ($6.2 million in 2003-04) is based on anticipated salary and wages levels for 2004-05. Other organisations, which have a payroll tax liability and employ apprentices, are entitled to receive assistance equivalent to the payroll tax liability accruing on apprentices' wages.
Since 1 July 1999, the Government has provided a full payroll tax rebate to all firms specialising in the development of computer software, business computer solutions and the manufacture of computers and related hardware. This rebate has been maintained in 2004-05 at an estimated cost of $700 000 ($800 000 in 2002-03).
An amount of $1.1 million was provided in 2003-04 to allow for reimbursements of payroll tax to Copper Mines of Tasmania (CMT). The agreement with CMT, under which the Government agreed to provide financial assistance via the reimbursement of royalties and payroll tax, ceased as at 31 March 2004. Thus, no provision is included in the 2004-05 Budget or Forward Estimates for the reimbursement of payroll tax paid by CMT beyond this date.
The Tasmanian Symphony Orchestra (TSO) became liable for payroll tax upon incorporation. To maintain the financial position of the TSO prior to incorporation, assistance of $240 000 has been provided to meet the TSO's payroll tax expense in 2004-05 ($240 000 in 2003-04). Tasmanian Community Fund
The Tasmanian Community Fund (TCF) was established under the Trust Bank Sale Act 1999 to make grants to worthwhile community organisations. Section 34 of the Trust Bank Sale Act outlines the amounts that are to be paid into the TCF. The amounts appropriated to the Fund are a Reserved by Law appropriation. The Act provides that:
• money held by the former Trust Bank Foundation be transferred into the Fund;
• immediately following the retirement of State Debt, an amount representing half the interest savings stemming from the retirement of debt using the proceeds of the sale of the Trust Bank for the period to the next 30 June be transferred to the Fund; and
• an annual amount representing half the interest savings relating to the total amount of debt retired, indexed in line with the Consumer Price Index, is transferred to the Fund each year.
108 Chapter 4: Finance-General The TCF Board has the discretion to either distribute or accumulate all or part of this amount.
The 2004-05 Budget estimate of $4.8 million represents the anticipated expenses to be incurred in the payment of grants in 2004-05, excluding reserves to be carried forward into future years. Wheat Freight Subsidy
The Wheat Freight Subsidy Account in the Special Deposits and Trust Fund records the receipt and disbursement of funds under the Wheat Freight Subsidy Agreement between the Commonwealth and the State pursuant to the Wheat Marketing Act 1989.
Figures provided by the Commonwealth indicate that the annual payment of $1.2 million will be provided for disbursement in 2004-05 ($1.2 million in 2003-04).
Chapter 4: Finance-General 109 Capital Investment Program
The Capital Investment Program of the Finance-General Division contains three 'continuing projects' – Building Services Maintenance, Essential Maintenance and Property Services Office Works. All three sub-programs are whole-of-government focused and relate to the government owned and leased office accommodation.
Table 4.7: Capital Investment Program1 2004-05) Budget) $'000) Continuing Projects Building Services Maintenance 816) Essential Maintenance 7 320) Property Services Office Works 1 138)
TOTAL CAPITAL INVESTMENT PROGRAM 9 274)
Note: 1. For more information regarding the Capital Investment Program, see Chapter 6 in Budget Paper No 1 Budget Overview 2004-05.
Building Services Maintenance
Building Services Maintenance provides for the maintenance of infrastructure in government owned office accommodation to ensure that the Government meets its statutory obligations as a building owner. Payments in respect of contracted statutory maintenance requirements for government owned office accommodation are met from this sub-program. Essential Maintenance
Essential Maintenance provides funding to agencies to enable them to fund urgent maintenance projects that arise outside the annual process of applying for funding from the Capital Investment Program. Property Services Office Works
Property Services Office Works provides for building consultancies and landlord works for government owned and leased office accommodation. Funding for building condition audits and subsequent works arising from these audits is sourced from this sub-program.
110 Chapter 4: Finance-General Economic and Social Infrastructure Fund
One of the Government's key initiatives in 2003-04 was the establishment of the Economic and Social Infrastructure Fund (ESIF). The ESIF will continue to be a significant mechanism for advancing the Government's key initiatives in 2004-05.
The major thrust of the ESIF is projects assisting economic development and social infrastructure. Social infrastructure projects involve education, tourism, parks, heritage, health and housing throughout the State. Economic development projects relate to a range of infrastructure and developments including the maintenance of the State's roads and bridges, and water infrastructure.
The balance of the ESIF at 30 June 2004 is estimated to be $157.1 million and will be brought forward into 2004-05. This balance includes a further appropriation in 2003-04 to the ESIF of $128.5 million. These additional funds will be used to:
• advance the Government's Affordable Housing Strategy ($45.0 million);
• provide additional funding for road and bridge maintenance ($18.0 million);
• redevelop the Elwick ($16.0 million) and Mowbray racecourses ($6.0 million);
• purchase vital health and medical equipment ($7.0 million); and
• establish a Community Infrastructure provision ($11.0 million).
In 2004-05, the ESIF will be appropriated $37.0 million, which includes proceeds from the sale of Government business assets totalling $25.0 million.
In total, $194.1 million will be available from the ESIF in 2004-05. Expenditure from the ESIF in 2004-05 is estimated to be $78.7 million and the balance will be carried forward to 2005-06.
A summary of the projects to be funded from the ESIF in 2004-05 is provided in Table 4.8.
Chapter 4: Finance-General 111 Table 4.8: Economic and Social Infrastructure Fund, 2004-05 2004-05 Budget $'000
Balance brought forward 157 086
Consolidated Fund: Annual Appropriation 37 000
TOTAL SOURCE OF FUNDS 194 086
OUTFLOWS Economic Development Projects 4 650
Community Infrastructure 3 000
Department of Economic Development Gas Infrastructure 20 334 Industry Assistance Program 2 000 Partnership to Jobs Program 1 360 23 694 Department of Education Information and Communications Technology Strategy 4 420 Increasing Child Care Provisions in Schools 2 000 Library Resources 500 Students with Higher Needs 2 500 9 420 Department of Health and Human Services Affordable Housing Strategy 14 000 Hospital Infrastructure Projects 800 Health Equipment 2 000 Intelligent Island Centre of Excellence 3 000 19 800 Department of Infrastructure, Energy and Resources Roads and Bridge Maintenance 6 000
Department of Primary Industries, Water and Environment Sullivans Cove Development Project 690 Water Infrastructure 1 500 2 190
112 Chapter 4: Finance-General Table 4.8: Economic and Social Infrastructure Fund, 2004-05 (continued) 2004-05 Budget $'000 Department of Tourism, Parks, Heritage and the Arts Cradle Tourism Development Plan 1 400 Highfield House 495 Parks and Heritage 4 090 Tourism Infrastructure 2 000 Tourism Marketing 2 000 9 985
TOTAL OUTFLOWS 78 739
CLOSING BALANCE 115 347
Economic and Social Infrastructure Fund Projects
The projects to which funding from the ESIF has been allocated in 2004-05 are:
• Economic Development Projects - $4.7 million to advance major economic infrastructure projects throughout the State;
• Community Infrastructure - $3.0 million to establish a Community Infrastructure provision;
• Gas Infrastructure – $20.3 million has been committed to meet the Government's contribution to Powerco for the continued advancement of the statewide gas distribution network (Stage 2A);
• Industry Assistance Program - $2.0 million is to be provided for grants, subsidies and development support projects to assist those businesses that can demonstrate a net economic benefit to the State. Funding will also be provided for the establishment of a Workforce Development Fund to assist businesses to meet emerging demand for skilled workers;
• Partnership to Jobs Program - $1.4 million to extend the Partnership to Jobs Program to provide sustainable employment opportunities for disadvantaged job seekers;
• Information and Communications Technology Strategy - $4.4 million for the maintenance of information and communication technology support to schools and the continuation of the e-Magine and information technology skills development for teachers. Funding also includes $2.0 million to support the implementation of the student assessment and reporting systems and commence the replacement of outdated systems used to support the delivery of education, training and information services to the Tasmanian community;
• Increasing Child Care Provision in Schools - $2.0 million to increase the provision of child care places by converting surplus school space into child care centres to be run by private service providers;
Chapter 4: Finance-General 113 • Library Resources - $500 000 to expand the State Library's lending collection through the purchase of books and other high-demand library resources;
• Students with Higher Needs - $2.5 million to support students with high needs and challenging behaviour;
• Affordable Housing Strategy - $14.0 million to advance the Government's Affordable Housing Strategy. A total of $45.0 million will be provided from the ESIF over four years for this significant Government initiative;
• Hospital Infrastructure Projects - $800 000 for improvements to infrastructure at the Launceston General Hospital;
• Health Equipment - $2.0 million for the purchase of essential health equipment. This allocation is in addition to $5.0 million provided to the Department of Health and Human Services for health equipment in 2003-04;
• Intelligent Island Centre of Excellence - $3.0 million to assist with the implementation of the Information Systems Development Plan to enable the Department of Health and Human Services to participate in the proposed Centre of Excellence in Health and Bio-Infomatics. A total of $5.0 million will be provided over two years for this initiative;
• Roads and Bridge Maintenance - $6.0 million will be provided for the maintenance of the State's roads and bridges. This allocation is in addition to the $54.3 million allocated through the Roads Program for roads and bridge maintenance in 2004-05. A total of $18.0 million will be allocated from the ESIF over three years to supplement the existing Roads Program;
• Sullivans Cove Redevelopment Project - $690 000 will be provided to advance the redevelopment of the Sullivans Cove precinct;
• Water Infrastructure - $1.5 million will be allocated for implementation of the Water Development Plan for Tasmania, to identify sustainable water development opportunities and emphasise the need to advance these developments to meet Tasmania's economic and social objectives;
• Cradle Tourism Development Plan - $1.4 million will be allocated to assist with the development of a village at Cradle Mountain including the establishment of a visitor centre;
• Highfield House - $495 000 for the continued implementation of the business plan relating to the commercial management and promotion of Highfield House near Stanley;
• Parks and Heritage - $4.1 million for Parks and Heritage to improve visitor services;
• Tourism Infrastructure - $2.0 million in each of the next three years will be provided to develop tourism infrastructure throughout the State; and
• Tourism Marketing - $2.0 million will be provided to Tourism Tasmania to continue building awareness of the Tasmanian tourism brand in New South Wales through further development of the Rejuvenating Journey marketing program. This will be done in partnership with TT-Line to maximise opportunities from the launch of the Spirit of Tasmania III service between Sydney and Devonport. In total, $4.0 million will be provided for this project over two years.
For details on the capital expenditures from the ESIF, refer to Chapter 6 of Budget Paper No 1 Budget Overview 2004-05.
114 Chapter 4: Finance-General Social Infrastructure Fund
The Social Infrastructure Fund (SIF) was a 2002-03 Budget initiative designed to improve services to the community and address social infrastructure needs. The portion of the SIF allocated for capital works was announced in the 2002-03 Budget as $14.2 million, with $15.8 million allocated for recurrent expenditure. The funding for capital works was increased by $2.0 million through an additional allocation during the 2001-02 financial year.
In total, $9.7 million will be available from the SIF in 2004-05. Expenditure from the SIF in 2004-05 is estimated to be $6.9 million.
A summary of the projects to be funded from the SIF in 2004-05 is provided in Table 4.9.
Table 4.9: Social Infrastructure Fund, 2004-05
2004-05 Budget $'000
Balance brought forward 9 681 TOTAL SOURCE OF FUNDS 9 681
OUTFLOWS Community Renewal Program 737
Department of Economic Development Physical Activity Centre 100
Department of Education Managing and Retaining Secondary Students at School (MARSSS) 700 TAFE Business Skills Development Program 300 1 000 Department of Health and Human Services Dental Health Package 1 726 Elective Surgery Package 1 300 3 026 Department of Infrastructure, Energy and Resources Road Safety 300
Department of Primary Industries, Water and Environment Water Infrastructure 1 418
Department of Tourism, Parks, Heritage and the Arts Bicentenary Celebrations 300
TOTAL OUTFLOWS 6 881
CLOSING BALANCE 2 800
Chapter 4: Finance-General 115 Social Infrastructure Fund Projects
The projects to which funding from the SIF has been allocated in 2004-05 are:
• Community Renewal Program - $737 000 to address community infrastructure needs;
• The Premiers' Physical Activity Council - $100 000 to encourage and promote key physical activity programs in Tasmania;
• Managing and Retaining Secondary Students at School Program - $700 000 to increase staffing to assist in managing and retaining secondary school students who are at risk of dropping out of school;
• TAFE Business Skills Development Program - $300 000 to improve the business skills of Tasmanian managers by providing existing and prospective business managers with training in a range of business management skills;
• Dental Health Package - $1.7 million to address oral health demands within the Tasmanian community;
• Elective Surgery Package - $1.3 million to address elective surgery demands in Tasmanian hospitals;
• Road Safety - $300 000 to implement key initiatives identified in the Tasmanian Road Safety Strategy;
• Water Infrastructure - $1.4 million to continue to implement the Water Development Plan for Tasmania; and
• Bicentenary Celebrations - $300 000 to deliver a year long program in 2004 of activity to mark the Bicentenary of European settlement in Tasmania.
116 Chapter 4: Finance-General 2001-02 Infrastructure Fund
The Infrastructure Fund (IF) was introduced in the 2001-02 Budget as a major Government initiative to provide one-off funding for Tasmanian economic and social infrastructure. Of the funding allocated for economic infrastructure in 2001-02, $7.0 million remains to be carried forward into the 2004-05 Budget.
It is anticipated that the remaining $7.0 million will be fully expended 2004-05 from the IF and the Fund closed.
The funding for the project to be completed in 2004-05 is summarised in Table 4.10.
Table 4.10: 2001-02 Infrastructure Fund, 2004-05
2004-05 Budget $'000
Balance Brought Forward 7 000
TOTAL SOURCE OF FUNDS 7 000
OUTFLOWS
Department of Primary Industries, Water and Environment Meander Dam 7 000
TOTAL OUTFLOWS 7 000
CLOSING BALANCE ....
2001-02 Infrastructure Fund Project Meander Dam $7.0 million has been brought forward from the 2001-02 Infrastructure Fund for the Meander Dam project. The Meander Dam project forms part of the Government's 2000-01 Water Development Plan and aims to help achieve the Government's target of doubling the value of primary production by 2008. The State objectives for the project include, but are not limited to, facilitating the construction and operation of the Dam and improving agricultural production in the Meander Valley by providing farmers with a reliable source of irrigation water.
Relevant approvals for construction of the dam have been issued by the Assessment Committee for Dam Construction and the Environmental Management and Pollution Control Board. The Parliamentary Standing Committee for Public Works approved the allocation of funding for the project in December 2002. A permit to construct the dam was refused in January 2003 by the Resource Management and Planning Appeal Tribunal. Subsequently, the Meander Dam Approvals Act 2003 was passed by both Houses of Parliament to effectively reinstate the approvals previously given to the project.
Chapter 4: Finance-General 117 The Commonwealth Government gave environmental approval for the construction of the Meander Dam in September 2003. However, the project has been delayed due to an appeal being lodged in November 2003 in the Federal Court of Australia by the Tasmanian Conservation Trust. The appeal is challenging the Commonwealth's decision-making process. The process to select the successful proponent to design, finance, construct and operate the Meander Dam will, subject to the Federal Court decision, commence as soon as possible following a final decision on the appeal.
118 Chapter 4: Finance-General DETAILED BUDGET STATEMENTS
Table 4.11: Output Group Expense Summary for Finance-General 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) Output Group 1 - Debt Servicing and Management 1.1 Debt Servicing 47 323) 35 807) (24.3) 1.2 Interest on Sundry Deposits 2 000) 3 200) 60.0) 1.3 Debt Management 11 663) 11 444) (1.9) 60 986) 50 451) (17.3) Output Group 2 - Employee Related Costs 2.1 Superannuation and Pensions 196 579) 209 585) 6.6) 2.4 Other 70) 70) ....) 2.5 Provision for Wage Increases 13 000) 13 000) ....) 209 649) 222 655) 6.2) Output Group 3 - Government Businesses 3.1 Forestry Tasmania 2 736) 4 761) 74.0) 3.2 State Fire Commission 3 850) 3 050) (20.8) 3.3 TT-Line 6 489) 4 296) (33.8) 13 075) 12 107) (7.4) Output Group 4 - Miscellaneous 4.1 Structural and Performance Initiatives Program 7 792) 8 942) 14.8) 4.2 Treasurer's Reserve 20 000) 20 000) ....) 4.3 Miscellaneous 3 502) 12 306) 251.4) 4.4 Payment to Australian Tax Office: GST Administration 13 500) 13 800) 2.2) 4.5 Tasmanian Risk Management Fund 24 441) 28 322) 15.9) 4.6 Fleet Management Services 39 935) 39 965) 0.1) 4.7 Property Management Services 13 329) 13 106) (1.7) 122 499) 136 441) 11.4)
Grants and Subsidies 112 255) 108 185) (3.6)
Other 70 717) 101 893) 44.1)
TOTAL AGENCY 589 181) 631 732) 7.2)
Chapter 4: Finance-General 119 Table 4.12: Statement of Financial Performance for Finance-General 2003-04 2004-05 Budget Budget Variation $'000 $'000 % OPERATING REVENUE Revenue from Government Annual Appropriation 341 142 348 022 2.0 Reserved by Law 157 255 166 863 6.1 Other1 2 100 .... (100.0) Taxation2 547 489 623 081 13.8 Fines and Regulatory Fees 30 30 .... Investment Income 190 803 183 730 (3.7) Grants 1 546 109 1 631 845 5.5 Sales of Goods and Services 51 524 55 195 7.1 Proceeds from the Disposal of Assets 26 000 26 500 1.9 Other Revenue3 98 596 191 976 94.7 TOTAL 2 961 048 3 227 242 9.0
OPERATING EXPENSES Employee Entitlements 13 070 13 070 .... Superannuation 196 579 209 585 6.6 Depreciation and Amortisation 8 426 8 426 .... Borrowing Costs4 60 986 50 451 (17.3) Grants and Transfer Payments5 204 773 238 004 16.2 Supplies and Consumables 74 247 81 174 9.3 Transfer to the Consolidated Fund6 2 294 990 2 416 821 5.3 Other Expenses 31 100 31 022 (0.3) TOTAL 2 884 171 3 048 553 5.7
NET OPERATING RESULT 76 877 178 689 132.4
Notes: 1. Other Revenue from Government represents amounts carried forward from 2003-04 under section 8A(2) of the Public Account Act 1986. The 2003-04 Budget included an estimated carry forward of $2.1 million for the First Home Owners Grant Scheme. No section 8A(2) carry forward is budgeted for 2004-05. 2. Taxation revenue of $623.1 million reported by Finance-General differs from the General Government sector taxation revenue of $606.6 million reported in Budget Paper No 1 Budget Overview 2004-05, due to elimination of payroll tax paid by General Government sector agencies of $78.8 million and inclusion of Light Vehicle Registration Fees of $23.1 million and State Fire Commission Receipts of $39.2 million in the General Government sector total. The increase in estimated 2004-05 taxation revenue above the 2003-04 original Budget estimate is primarily due to anticipated continued high levels of land tax, payroll tax and duties revenue. Payroll tax revenue in 2004-05 is estimated to be $252.3 million, an increase of $16.3 million, or 6.9 per cent, on the 2003-04 Budget estimate of $236.0 million, as a result of anticipated growth in employment in the payroll tax paying sector and expected growth in wages. Duties revenue is estimated to be $180.8 million, an increase of $42.4 million or 30.6 per cent on the 2003-04 Budget estimate of $138.4 million, as a result of much higher than expected growth in activity and prices in the Tasmanian residential real estate market in the first half of 2003-04 and strong commercial property prices throughout most of 2003-04. Land tax revenue in 2004-05 is estimated to be $33.7 million, an increase of $8.2 million or 32.2 per cent, above the 2003-04 Budget estimate of $25.5 million. The estimated increase is primarily a result of reciprocal taxation introduced under the State and Local Government Financial Reform Act 2003.
120 Chapter 4: Finance-General 3. Other Revenue includes the estimated increase in value of the Government's equity interest in Government businesses. The 2004-05 Budget estimate of the increase in value in equity interests between 30 June 2004 and 30 June 2005 is $119.9 million, which is $94.1 million greater than the 2003-04 Budget estimate of the increase in value of $25.8 million. The 2003-04 Budget estimate was based on the Treasurer's 50 per cent stakeholder ownership of State-owned Companies, while the 2004-05 Budget estimate is based on the total Government shareholder ownership of all Government businesses. 4. The reduction in Borrowing Costs in 2004-05 is primarily due to savings from an overall reduction in the level of State Debt from temporary financing of maturing debt using surplus cash held in the Public Account. 5. The increase in the 2004-05 Budget estimate for Grants and Transfer Payments principally reflects the increased transfer of funds to agencies from the Economic and Social Infrastructure Fund. 6. Transfer to the Consolidated Fund includes the transfer of taxation revenue, Commonwealth Government payments and returns from Government businesses. The increase in the 2004-05 Budget estimate reflects the increase in revenue from these items.
Chapter 4: Finance-General 121 Table 4.13: Statement of Financial Position as at 30 June for Finance-General 2004 2005 Budget Budget Variation) $'000 $'000 %) CURRENT ASSETS Cash 309 689 333 351 7.6 Receivables1 46 267 54 866 18.6 Investments2 17 967 5 853 (67.4) Accrued Revenue 986 192 (80.5) Tax Assets 291 35 (88.0) TOTAL 375 200 394 297 5.1
NON-CURRENT ASSETS Investments2 273 427 248 970 (8.9) Equity Investments3 541 708 4 253 639 685.2 Land and Buildings 20 892 19 840 (5.0) Plant and Equipment 46 805 53 247 13.8 Infrastructure 25 000 23 061 (7.8) TOTAL 907 832 4 598 757 406.6
TOTAL ASSETS 1 283 032 4 993 054 289.2
CURRENT LIABILITIES Payables 526 2 104 300.0 Interest Bearing Liabilities4 289 816 270 117 (6.8) Superannuation5 118 731 139 422 17.4 Accrued Expenses 15 488 10 761 (30.5) Other6 19 253 181 768 844.1 TOTAL 443 814 604 172 36.1
NON-CURRENT LIABILITIES Interest Bearing Liabilities4 600 337 321 615 (46.4) Superannuation5 1 915 224 1 993 268 4.1 Other6 37 088 67 894 83.1 TOTAL 2 552 649 2 382 777 (6.7)
TOTAL LIABILITIES 2 996 463 2 986 949 (0.3)
NET ASSETS (1 713 431) 2 006 105 (217.1)
122 Chapter 4: Finance-General Notes: 1. The estimated increase in Receivables is primarily due to an upward revision in estimated state taxation receivable at 30 June 2005 based on the 30 June 2003 balance. 2. The Investments held by Finance-General comprise advances to State authorities, Housing Tasmania, Local Government and community organisations. The decrease in the estimated value of current and non-current Investments as at 30 June 2005 reflects the repayment of advances, particularly by State authorities, during the financial year. 3. Previously, a number of agencies recognised the ownership interest in State-owned Companies (SOCs) on the basis of the shares being held by the relevant Minister. Equity investments in SOCs were therefore reported within the Departments of Infrastructure, Energy and Resources (DIER), Tourism, Parks, Heritage and the Arts (DTPHA) and Finance-General. The Government's ownership interest in Government Business Enterprises (GBEs) was not previously recognised in agency financial statements on the basis that there is no share certificate, notwithstanding that the ownership relationship is primarily the same as for SOCs. In the interests of harmonising Government Finance Statistics (GFS) and Australian Accounting Standards (AAS), and improving the transparency of departmental reporting, from 2003-04 an ownership interest in all Government businesses (both GBEs and SOCs) is recognised for reporting under AAS. This ownership interest is recognised within the Finance-General Division. The initial recognition of the equity investment in GBEs, measured according to the carrying amount of net assets of the GBEs, has been credited directly to equity in accordance with Generally Accepted Accounting Principles. The estimated gain in value of the Government's ownership interest in GBEs and SOCs between 30 June 2004 and 30 June 2005, is included as Revenue in the Statement of Financial Performance and treated as an increase in Equity Investments in the Statement of Financial Position. 4. Interest Bearing Liabilities represents previous borrowings from the Commonwealth under the Financial Agreement Act 1927 (Commonwealth), other Commonwealth borrowings and borrowings through Tascorp. The decrease in estimated current Interest Bearing Liabilities at 30 June 2005 reflects the anticipated temporary financing of maturing debt during 2004-05 using surplus cash in the Public Account. 5. Further information on the unfunded superannuation liability reported in Finance-General, which equates to the Gross Unfunded Superannuation Liability of the General Government Sector, can be found in Chapter 7 of Budget Paper No 1 Budget Overview 2004-05. 6. Other Current Liabilities and Other Non-Current Liabilities represent the estimated claims liability of the Tasmanian Risk Management Fund (TRMF), based on actuarial advice, of $92.8 million at 30 June 2005 ($55.6 million in the original 30 June 2004 estimate) and the estimated balance of funds held on behalf on other agencies in accounts in the Special Deposits and Trust Fund of $160.4 million at 30 June 2005. The increase in the 30 June 2005 estimated claims liability of the TRMF above the original 30 June 2004 estimate is primarily the result of the inclusion of an estimated liability of $25.9 million relating to medical malpractice claims, which was not included in the original 2003-04 Budget.
Chapter 4: Finance-General 123 Table 4.14: Statement of Cash Flows for Finance-General 2003-04 2004-05 Budget Budget Variation $'000 $'000 % CASH FLOWS FROM OPERATING ACTIVITIES Receipts Revenue from Government Appropriation 341 142 348 022 2.0 Reserved By Law 157 255 166 863 6.1 Taxation 547 489 623 081 13.8 Fines and Regulatory Fees 30 30 .... Interest Received 23 243 29 084 25.1 Grants 1 546 109 1 631 845 5.5 Sales of Goods and Services 51 524 55 195 7.1 GST Receipts 13 415 13 415 .... Other Receipts 240 319 226 901 (5.6) Payments Employee Entitlements (13 070) (13 070) .... Superannuation (118 731) (139 422) 17.4 Borrowing Costs (68 202) (52 041) (23.7) Grants and Transfer Payments (204 773) (238 004) 16.2 Supplies and Consumables (71 640) (128 146) 78.9 Transfers to the Consolidated Fund (2 294 990) (2 416 821) 5.3 GST Payments (13 415) (13 415) .... NET CASH FROM/(USED IN) OPERATING ACTIVITIES 135 705 93 517 (31.1)
CASH FLOWS FROM INVESTING ACTIVITIES Sale of Fixed Assets 26 000 26 500 1.9 Purchase of Fixed Assets (38 000) (38 500) 1.3 Net Purchase of Investments (37 511) (14 704) (60.8) Net Customer Loans (Granted)/Repaid 24 678 9 600 (61.1) NET CASH FROM/(USED IN) INVESTING ACTIVITIES (24 833) (17 104) (31.1)
CASH FLOWS FROM FINANCING ACTIVITIES Net Borrowings (188 991) (201 158) 6.4 NET CASH FROM/(USED IN) FINANCING ACTIVITIES (188 991) (201 158) 6.4
Net Increase/(Decrease) In Cash Held (78 119) (124 745) 59.7
Cash at the Beginning of Reporting Period 387 808 458 096 18.1
Cash at the End of Reporting Period 309 689 333 351 7.6
124 Chapter 4: Finance-General Reconciliation of Operating Expenses to Consolidated Fund Appropriation
A reconciliation of Total Operating Expenses to the Total Consolidated Fund Appropriation for Finance-General Division is provided in Table 4.15.
Table 4.15: Reconciliation of Operating Expenses to Consolidated Fund Appropriation 2003-04 2004-05 Budget Budget $'000 $'000
Total Operating Expenses 589 181) 631 732)
Adjustments for Non-cash Items Superannuation Expense (77 848) (70 163) Depreciation (8 426) (8 426) Borrowing Costs 7 216) 1 590) Supplies and Consumables (2 607) .... ) Other Expenses (31 100) (40 547) Total Cash Cost of Outputs 476 416) 514 186)
Net Additional Contribution to Provisions1 158 533) 171 157) Other Funding Sources (178 799) (215 718) Net Capital Transactions 42 247) 45 260)
Total Consolidated Fund Appropriation 498 397 514 885
Note: 1. Net Additional Contribution to Provisions is comprised of additional contributions to Finance-General Division from the Consolidated Fund, over and above the immediate cash expenses budgeted for the relevant financial year, as follows: 2003-04 2004-05 $'000 $'000
Superannuation Provision Account 71 302 63 557 Structural and Performance Initiatives Program 9 865 8 000 Economic and Social Infrastructure Fund 28 500 37 000 Tasmanian Community Fund 266 .... Interest on Provision Accounts 34 600 45 600 Debt Management 7 000 8 000 27th Pay Provision 4 000 4 000 Tasmanian Risk Management Fund 3 000 5 000 158 533 171 157
Chapter 4: Finance-General 125
5 DEPARTMENT OF HEALTH AND HUMAN SERVICES
AGENCY OUTLINE
The Department of Health and Human Services is Tasmania's largest government department and directly employs over 9 000 people. In 2004-05, the Department's total budgeted expenditure on health and human services will be in excess of $1 billion, reflecting an increase in State funding of $52.4 million or 6.8 per cent from the previous year.
The Department is responsible for delivering integrated services that maintain and improve the health and well being of individual Tasmanians and the Tasmanian community as a whole. Services provided by the Department include family, child and youth services; oral (dental) health services; alcohol and drug services; public and environmental health services; scientific services; health and well being outcome services for diverse population groups; cancer screening and control; aged, rural and community health services; mental health services; services for people with a disability; palliative care; special needs accommodation; adoptions and information; youth justice; crisis care; alternative care; hospital services for admitted and non-admitted patients; emergency and non-emergency patient transport; clinical research; clinical teaching; public and private rental assistance; community sector housing; and home ownership assistance.
As a consequence of the diverse range of services provided by the Department, there are opportunities to ensure that services are planned and integrated in a way that maximises health and well being outcomes for the Tasmanian community. To help achieve this, the Department fosters networks and partnerships with the community and other providers, in addition to the services directly provided by the Department.
Services are delivered from 362 sites across Tasmania, including:
• the Royal Hobart, Launceston General and North West Regional Hospitals;
• 20 rural health facilities (including district hospitals, multi-purpose services and other inpatient facilities);
• 39 ambulance stations;
• 23 community health and multi-purpose centres;
• nine day centres for the frail, aged and people with a disability;
• 91 Child Health Centres (at a combination of dedicated and collocated sites);
• two youth health centres;
• three parenting centres;
• 28 mental health facilities;
Chapter 5: Health and Human Services 127 • seven housing service centres servicing 12 500 social housing properties;
• 34 oral (dental) health facilities; and
• the Ashley Youth Detention Centre.
A number of services such as Home and Community Care and community nursing are provided directly to clients in their home by staff working out of a number of the 362 sites.
The Department delivers these services through four Output Groups:
• Community, Population and Rural Health;
• Children and Families;
• Hospitals and Ambulance Service; and
• Housing Tasmania.
STRATEGIC FOCUS
The provision of quality health and human services continues to provide significant challenges in the context of escalating costs and unprecedented demand for these services. Government expenditure on health and human services has continued to grow at a rate greater than overall General Government expenditure. Strategies and service delivery reforms are being developed to maintain the quality of services delivered, while ensuring that sustainable future growth in health and human services expenditure can be achieved.
All Australian jurisdictions are facing issues such as the ageing of the population, advances in health technologies, improved drug treatments and clinical practice, and difficulties in the recruitment and retention of health professionals. However, the pressures in Tasmania are magnified due to a population that is ageing more rapidly, a greater reliance on social services and diseconomies of scale due to a relatively small and dispersed population.
It is against these challenges and issues that the Department has identified improved health and well being for Tasmanians as its vision for the future.
While many people enjoy our unique environment and recreational and lifestyle opportunities, Tasmanians are generally less healthy and experience more social problems than other Australians. Therefore, the Department has identified four challenging outcomes to guide its efforts to achieve its vision:
• health and well being status which compares favourably with the best in Australia;
• quality of life maintained and improved for those who experience illness, injury or disability and those in need of personal or social support;
• enhanced capacity and increased opportunities for Tasmanians of all ages to contribute to their own health and well being; and
• a strong, dynamic organisation that leads the health and human service industry and is responsive to the external environment.
128 Chapter 5: Health and Human Services The Department's strategic directions are guided by the goals and benchmarks established through Tasmania Together and by the Government's whole-of-government approach to social reform and strategic partnerships with and across levels of government, the community sector and other partners.
KEY STRATEGIES
The Government's most fundamental commitment to health and human services in Tasmania has been to ensure a sustainable balance between the provision of a quality health and human service system and the available level of funding. In recent years, the Government has provided additional funding to maintain, and in a number of areas enhance, the quality and standard of care. Additional investment has been made in children's services; oral health; mental health; rural health; disability services; elective surgery; health workforce; ambulance services and most recently affordable housing.
The Department has a strong commitment to continuously improving the services it provides within the overall financial resources provided by the Government. As is the case with health systems elsewhere, the cost of the service delivery system continues to grow, as do the demands on the system through factors such as population ageing and demographic change, technology, family structures, and social and cultural change.
In response to these demand pressures, the Government will invest an additional $52.4 million in expenditure from the Consolidated Fund in 2004-05 for the provision of health and human services. This additional effort will ensure that the Department can maintain the quality and standard of care to the Tasmanian community.
The Department will continue to strive for improved efficiency in service delivery to ensure that the funds provided are used to maximum effect in improving the health and well being outcomes of the Tasmanian community.
In addition, in 2004-05, the Department will continue to:
• improve the effectiveness of individual services, particularly in those areas where Tasmania's needs are relatively high;
• build on partnerships and community capacity as key ways to achieve healthy outcomes; and
• seek to use innovation, technology and information to improve delivery systems and client outcomes.
Funding increases have been received across all areas, including:
• $22.3 million for Hospitals and Ambulance Service;
• $25.2 million for Community, Rural and Population Health; and
• $7.0 million for Children and Families.
A key component of maintaining and improving services is the Department's workforce, and these funding increases include significant increases in salaries offered to key areas of the health service workforce, in particular nurses and ambulance services staff.
Chapter 5: Health and Human Services 129 2004-05 MAJOR INITIATIVES Increased Recurrent Funding for Improved Service Delivery
The continuing increase in demand for services, development of new technologies and treatments, and the quality and safety standards required of services continue to place funding demands on Departmental resources. In addition, the continuing commitment to improve access to services in rural and regional communities means infrastructure and services are a priority.
Initiatives to maintain and improve services include:
• Hospitals and Ambulance Service: increased funding to the State's major hospitals, including additional base funding of $6.1 million to cover the additional costs for medical, surgical and pharmaceutical supplies and increases in demand for hospital and ambulance services; $400 000 to expand cardiology services at the Launceston General Hospital; continued funding of $1.3 million to address elective surgery activity; funding for additional specialists and other medical practitioners through the North West Hospital and Ambulance Services Package; additional ambulances and crew in the North-West of the State; $4.8 million to purchase two new multi-slice CT scanners; nine replacement ambulances and new Cardio-thoracic Intensive Support Unit equipment;
• Disability Services: increased funding of $3.8 million to assist in meeting additional costs in disability services arising from increasing demand in recent years for emergency accommodation and respite services; to increase long-term supported accommodation places, particularly for high needs clients; and to provide additional day support and professional support for people with challenging behaviours;
• Mental Health Services: an additional $6.9 million will be invested in mental health services in 2004-05. This includes an additional $1.9 million in base funding to improve existing services and $5 million in recurrent funding to support the new Secure Mental Health Unit as part of the Risdon Prison redevelopment;
• Oral Health Services: funding of $2.0 million to improve oral health services, including continuing funding from the Economic and Social Infrastructure Fund, as well as further funding to recruit and train additional dental practitioners, therapists and assistants;
• Child and Family Support Services: increased base funding of $4 million for additional child abuse assessment officers and case managers and to meet the increased costs of the child support and protection system, and the full year effect of the new carer payment system, including kinship care and approved children's homes; also an additional $1 million funding for the Department's contribution to implement the Government's 'Safe at Home' – A Criminal Justice Framework for Responding to Family Violence in Tasmania initiative; and
• Non-government service organisations: an additional $2.6 million for the second year phase in of the new cost indexation arrangements for funded organisations.
130 Chapter 5: Health and Human Services Increased Remuneration for Health Workforce
Recruiting, retaining and maintaining the professional skills of the Department's workforce is fundamental to improving services, including managing demand, maintaining quality, and ensuring clients receive appropriate professional care. Initiatives, in addition to those announced in the North West Hospital and Ambulance Services Package include:
• additional funds in 2004-05 of $23.2 million to increase the remuneration of nurses, medical practitioners, ambulance officers, allied health professionals and other Departmental staff. Additional funding in excess of $100 million over four years will be provided for improved remuneration for nurses and ambulance officers; and
• further development of longer term workforce strategies with increased focus on allied health professions, development of strategies that are integrated across the major professional groups, and continuing to develop strategies with the University of Tasmania and professional bodies. In 2004-05, particular attention will be given to professions common with the Department of Education as part of developing better aligned service delivery arrangements to joint clients. Increased Capital Investment in Health and Human Services
Planned capital activity in 2004-05 will be significantly higher than in previous years. Projects include:
• Affordable Housing: it is estimated that over $50 million will be committed on affordable housing provision and support programs in 2004-05, which will be funded from the Government's $45 million allocation for the Affordable Housing Strategy and from Housing Tasmania's capital funds;
• Capital Investment Program: $7.8 million will be spent in 2004-05 as part of total expenditure of $30.3 million on approved CIP projects, including;
− $1.5 million as part of total expenditure of $6.5 million for the Hospital Information System:
− $2.4 million as part of total expenditure of $3.9 million for the West Coast Multi-Purpose Centre;
− $1.3 million as part of total expenditure of $11.1 million for the Department of Emergency Medicine redevelopment at the Royal Hobart Hospital;
− $1.3 million as part of total expenditure of $2.9 million for the Scottsdale Hospital redevelopment;
− $500 000 as part of total expenditure of $3.8 million for the Smithton District Hospital redevelopment;
− $200 000 as part of total expenditure of $2.3 million for the George Town Hospital redevelopment; and
− $568 000 for the May Shaw Health Centre redevelopment; and
• Health Equipment: $2 million from the Economic and Social Infrastructure Fund will be expended on the replacement of health equipment including cardio-thoracic and intensive care equipment and dental chairs.
As the Department's financial information for the 2004-05 Budget was finalised prior to the Government's announcement of the North West Hospital and Ambulance Services Package, the funding provided for this package ($16 million over four years) is yet to be included in the Department's Budget and will be addressed through additional Budget supplementation in 2004-05 and a revision to the Agency's Forward Estimates.
Chapter 5: Health and Human Services 131 SUMMARY AGENCY 2004-05 BUDGET INFORMATION
Financial Summary
Table 5.1: Summary Financial Information for the Department of Health and Human Services 2003-04 2004-05 Budget Budget Variation $'000 $'000 % OPERATING REVENUE Revenue from Government Annual Appropriation1 771 393 823 758 6.8 Other2 14 837 6 176 (58.4) Other Revenue 146 757 152 296 3.8 TOTAL 932 987 982 230 5.3
OPERATING EXPENSES Community, Population and Rural Health3 299 822 320 751 7.0 Children and Families4 62 854 69 917 11.2 Hospitals and Ambulance Service 467 795 486 292 4.0 Housing Tasmania 98 216 97 340 (0.9) Grants and Subsidies5 13 526 12 164 (10.1) Other6 17 888 14 257 (20.3) TOTAL 960 101 1 000 721 4.2
NET OPERATING RESULT (27 114) (18 491) (31.8)
Notes: 1. The increase in Annual Appropriation represents the provision of additional funding for the Secure Mental Health Unit implementation, maintaining services in Disability, Mental Health, Oral Health and child protection services, the 'Safe at Home' initiative, maintaining acute Hospital and Ambulance Services, additional Cardiology Services at the Launceston General Hospital and additional funding for salaries and wages. 2. The decrease in Other Revenue from Government relates to reduced amounts being carried forward from 2003-04 under section 8A(2) of the Public Account Act 1986. 3. The increase in Community, Population and Rural Health primarily relates to additional funding to maintain services in Disability Services, Mental Health Services and for salary and wage indexation. 4. The increase in Children and Families primarily relates to additional funding for maintaining services in child protection, the 'Safe at Home' initiative and salary and wage indexation. 5. The decrease in funding and associated payment for the Aurora Energy Pty Ltd Community Service Activity for pensioner concessions reflects the revised estimated cost of providing winter electricity concessions to eligible beneficiaries. 6. The reduction in Other relates to the net reduction in Housing Tasmania's Capital Investment Program as a result of the decrease in expected sales of surplus housing stocks.
132 Chapter 5: Health and Human Services Infrastructure Funds
Table 5.2: Allocations for the Department of Health and Human Services from Infrastructure Funds 2003-04 2004-05 Budget Budget $'000 $'000
Economic and Social Infrastructure Fund (ESIF) Affordable Housing Strategy1 .... 14 000 Low Cost Housing2 3 000 .... Hospital Infrastructure Projects3 1 800 800 Health Equipment4 .... 2 000 Intelligent Island Centre of Excellence5 .... 3 000 TOTAL ESIF 4 800 19 800
Social Infrastructure Fund (SIF) Dental Health Package6 1 300 1 726 Elective Surgery7 1 300 1 300 Community Renewal Program 1800 Number 'Our Kids' Program8 250 190 TOTAL SIF 2 850 3 216
TOTAL INFRASTRUCTURE FUND ALLOCATIONS 7 650 23 016
Notes: 1. Project to be undertaken over four years from 2003-04 to 2006-07. Total funding equals $45 million. 2. Project completed during 2003-04. Total funding equals $3 million. 3. Project to be undertaken over two years from 2003-04 to 2004-05. Total funding equals $1.8 million with $800 000 being carried forward from 2003-04 to 2004-05 to enable completion of the project. 4. Project to be undertaken over two years from 2003-04 to 2004-05. Total funding equals $7 million ($5 million was made available in 2003-04 but not included in the original Budget estimate). The $2 million funding in 2004-05 reflects the second instalment of this funding. 5. Project to be undertaken over two years from 2004-05 to 2005-06. Total funding equals $5 million. 6. Project to be undertaken over four years from 2002-03 to 2005-06. Total funding equals $5.2 million. 7. Project to be undertaken over four years from 2002-03 to 2005-06. Total funding equals $5 million. 8. Project was to be undertaken over two years from 2002-03 to 2003-04 but is now scheduled for completion in 2004-05. Total funding equals $250 000 with $190 000 being carried forward from 2003-04 to 2004-05 to enable the project to be completed.
Chapter 5: Health and Human Services 133 DETAILED OUTPUT GROUP 2004-05 BUDGET INFORMATION
The individual Outputs of the Department of Health and Human Services are provided under the following Output Groups:
Output Group 1: Community, Population and Rural Health;
Output Group 2: Children and Families;
Output Group 3: Hospitals and Ambulance Service; and
Output Group 4: Housing Tasmania.
Output Group 1: Community, Population and Rural Health Description
The Community, Population and Rural Health Output Group provides primary health, population health and community support services delivered to people in community settings. The vision for the Output Group is Healthy People in Healthy Communities.
The Community, Population and Rural Health Output Group delivers services through three sub-divisions:
• Primary Health which comprises: Aged, Rural and Community Health (including Community Assessment and Care Management), Oral Health Services, and Palliative Care;
• Community Support which comprises: Mental Health Services (including Correctional Health), Disability Services, and Alcohol and Drug Services; and
• Population Health which comprises: Public and Environmental Health, Cancer Screening and Control Services, and Population and Health Priorities.
A primary objective of the strategic grouping of outputs is to ensure the coordination and integration of services to enable the needs of clients with complex and continuing needs to be met. This also reflects a focus on the needs of people in rural and remote communities as well as the population health needs of Tasmanians generally. This grouping also enables the Output Group to effectively integrate Department priorities and whole-of-government initiatives such as Tasmania Together and the Partnerships program with Local Government, regional authorities and other key stakeholders.
Working to improve the health and well being of all Tasmanians, services within the Community, Population and Rural Health Output Group have identified the following four priority focus areas:
• protecting, promoting, and maintaining good health and well being;
• improving the sustainability and integration of services;
• improving the quality and safety of services; and
• improving the organisational capacity of the Output Group's services.
134 Chapter 5: Health and Human Services Table 5.3: Summary Financial Information - Output Group 1 2003-04 2004-05 Community, Population and Rural Health Budget Budget Variation $'000 $'000 % OPERATING REVENUE Revenue from Government Annual Appropriation1 255 605 280 760 9.8 Other2 6 433 4 176 (35.1) Investment Income 4 6 50.0 Grants3 12 841 14 129 10.0 Sales of Goods and Services4 9 727 13 432 38.1 Other Revenue5 6 495 4 370 (32.7) TOTAL 291 105 316 873 8.9
OPERATING EXPENSES Employee Entitlements Salaries and Wages6 131 534 150 947 14.8 Other Employee Related Expenses6 12 974 14 369 10.8 Superannuation6 13 006 14 332 10.2 Depreciation and Amortisation7 1 871 2 476 32.3 Borrowing Costs 19 .... (100.0) Grants and Transfer Payments 85 934 82 938 (3.5) Supplies and Consumables Consultants 267 194 (27.3) Maintenance and Property Services8 7 172 10 114 41.0 Communications 2 210 2 177 (1.5) Information Technology9 3 327 2 546 (23.5) Travel and Transport 4 069 3 882 (4.6) Medical, Surgical and Pharmacy Supplies10 10 737 11 876 10.6 Advertising and Promotion 124 114 (8.1) Other Supplies and Consumables11 26 578 24 786 (6.7) TOTAL 299 822 320 751 7.0
EXPENSE BY OUTPUT 1.1 Aged, Rural and Community Health Services12 108 329 114 483 5.7 1.2 Oral Health Services13 12 215 13 299 8.9 1.3 Palliative Care Services 5 871 6 266 6.7 1.4 Public and Environmental Health Services14 10 702 9 929 (7.2) 1.5 Cancer Screening and Control Services 4 773 4 905 2.8 1.6 Population and Health Priorities15 3 905 3 628 (7.1) 1.7 Disability Services16 89 613 96 054 7.2
Chapter 5: Health and Human Services 135 Table 5.3: Summary Financial Information - Output Group 1 (continued) 2003-04 2004-05 Community, Population and Rural Health Budget Budget Variation $'000 $'000 % 1.8 Mental Health Services17 55 526 63 844 15.0 1.9 Alcohol and Drug Services18 8 888 8 343 (6.1) TOTAL 299 822 320 751 7.0
Notes: 1. The increase in the Annual Appropriation represents the provision of additional funding for the Secure Mental Health Unit implementation, maintaining services in Disability, Mental Health and Oral Health Services and salary and wage indexation. 2. The decrease in Other Revenue from Government relates to reduced amounts being carried forward from 2003-04 under section 8A(2) of the Public Account Act 1986. 3. The increase in Grants primarily relates to increased revenue from the Commonwealth as a result of the transfer of the West Coast Health Services to the State. 4. The increase in Sales of Goods and Services revenue represents increased revenue that will be collected by Aged, Rural and Community Health Services. Additional revenue is also anticipated following the transfer of the West Coast Health Services from the West Coast Council and the Zeehan Medical Union to the Department. The increase also includes revenue previously reported under the Other Revenue classification. 5. The reduction in Other Revenue is due to an anticipated reduction in the level of recoveries, and also due to some revenue now being reported under Sales of Goods and Services. 6. The increases in Salaries and Wages, Other Employee Related Expenses and Superannuation reflect additional funding for salaries, and increased staffing resources for the Secure Mental Health Unit, Disability Services, Mental Health Services, Oral Health Services, the transfer of service delivery for West Coast Health Services and Cancer Screening and Control Services, and costs associated with salary and wage indexation. 7. A recent stocktake of Department buildings and a review of depreciation rates resulted in increased building depreciation charges in the 2004-05 Budget. 8. The increase in Maintenance and Property Services costs is attributable to the reclassification of costs such as programmed and general maintenance of land and buildings, plant and equipment and furniture and fittings to this expenditure category. These expenses were formerly reported under the Other Supplies and Consumables category. 9. The reduction in Information Technology relates to the completion of the Telehealth project. 10. The increase in Medical, Surgical and Pharmacy Supplies is primarily attributable to the West Coast Health Services transferring to the State, and increased activity in Mental Health and Disability Services. 11. The decrease in Other Supplies and Consumables costs is attributable to the reclassification of costs such as programmed and general maintenance of land and buildings, plant and equipment and furniture and fittings from this expenditure category. These expenses are now reported under the Maintenance and Property Services category. The decrease is also attributable to the transfer of service delivery for Cancer Screening and Control Services into the Department. 12. The increase in the Aged, Rural and Community Health Services Output is attributable to the transfer of service delivery for West Coast Health Services and increased staffing resources for the maintenance of services. 13. The increase in the Oral Health Services Output is primarily attributable to the implementation of the Service Enhancement and Workforce Reform Process and salary and wages indexation. Total additional funding of $2 million has been provided to improve Oral Health Services including continuing funding from the Economic and Social Infrastructure Fund. 14. For the Public and Environmental Health Services Output, the 2003-04 Budget included expenditure for projects carried over from 2002-03. Project carry over into 2004-05 is at a lower level than in 2003-04. 15. For the Population and Health Priorities Output, the 2003-04 Budget includes expenditure for projects carried over from 2002-03. Project carry over into 2004-05 is at a lower level. The core budget is consistent between the years. 16. The increase in the Disability Services Output is attributable to increased resources for the maintenance of services. 17. The increase in the Mental Health Services Output is attributable to the Secure Mental Health Unit implementation and maintenance of services. 18. For the Alcohol and Drug Services Output, the 2003-04 Budget included expenditure for projects carried over from 2002-03. Project carry over into 2004-05 is at a lower level than in 2003-04.
136 Chapter 5: Health and Human Services Major Issues and Initiatives for 2004-05
In 2004-05, the Output Group will focus on the key business areas outlined below. In protecting, promoting and maintaining good health and well being, the Department will: • progress the Public Health legislative agenda;
• further develop the collaborative partnership across government to coordinate effort on the Tasmania Together healthy lifestyles goal;
• support children of parents who have a mental illness though the Kids in Mind initiative; and
• review the Tasmanian Shellfish Quality Assurance Program in conjunction with the Department of Primary Industries, Water and Environment and the industry. In improving the sustainability and integration of services, the Department will: • further implement integrated electronic health records through the Community Client Health Profile (CCHP) Project;
• finalise the review of Palliative Care services;
• further develop and implement a Strategic Plan for Oral Health Services;
• initiate a review of therapy services for children with a disability;
• provide consistent, accessible and quality nursing services through the development and implementation of a statewide model for community nursing;
• improve integration between rural hospitals, major hospitals and community services; and
• further develop options for supported accommodation for people with mental health problems. In improving the quality and safety of Community, Population and Rural Health's services, the Department will: • further develop and implement clinical governance structures;
• progress capital development projects at Tasman and West Coast, and plan and initiate capital developments at George Town, Scottsdale and Circular Head;
• further implement the Agency Collaboration Strategy for the better management of complex, exceptional needs;
• further extend the range and type of service models for community accommodation and day options for people with disabilities; and
• further implement an accreditation process for Mental Health Services whereby all services will be reviewed against the National Standards for Mental Health Services. In improving Community, Population and Rural Health's organisational capacity, the Department will: • review legislation (relevant to Community Support Services) to ensure that all relevant Acts are congruent with each other and support effective interventions, protection of health and consumer rights;
• further develop the new prison health services, including design and service model development for a Health Centre and a separate Secure Mental Health Unit;
Chapter 5: Health and Human Services 137 • finalise and commence implementation of the Tasmanian Aboriginal Health and Well Being Strategic Framework; and
• implement new systems for management of fluoridation in drinking water following transfer of responsibilities from the Department of Primary Industries, Water and Environment to the Department of Health and Human Services.
Table 5.4: Performance Information – Output Group 1 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Children fully immunised (DTP polio Hib) at age 1 year % 92.2 93.0 91.8 94.0 Children fully immunised (measles) at age 1 year % 95.2 96.0 95.0 96.0 Small invasive breast cancer detection rate Per 10 000 (women aged 50-69 years) women screened 18.8 30.2 >25.0 >25.0 Total community accommodation clients with a disability Number 759887 900 912 Total emergency Disability Services respite requests met % 88 95 100 100 Rate of disability respite occupancy % 112 107 100 100 Closed episodes of alcohol and drug treatment as a proportion of all client registrations (community services) % 85 96 85 85 Total closed episodes of alcohol and drug treatment Number n.a. 2 571 2 800 2 800 Mental Health Services with national accreditation % 1220 40 60 Dental occasions of service (adults) Number 16 323 17 873 18 511 20 595 Dental occasions of service (children) Number 72 094 72 129 78 288 84 447 Residential aged care sites accredited % 100 100 100 100 Total separations at district hospitals Number 4 723 4 404 4 400 4 400 Residential aged care occupancy rate % 93.0 88.3 88.0 88.0 Clients accessing palliative care services Number 750 807 810 850 Whittle Ward occupancy rate % 79.5 84.4 85.5 85.5
Performance Information Comments
Tasmania experiences one of the highest vaccination rates nationally and this is reflected in the figures above. With the introduction of new vaccines there is a challenge to develop strategies to ensure that these rates can be maintained. The trend since 1996 has been upwards, although, annual figures fluctuate by plus or minus 1-3 per cent.
Tasmania is achieving high rates of cancer detection and is meeting all national standards in this area. The National Accreditation Standard Performance measure for the rate of detection of small invasive breast
138 Chapter 5: Health and Human Services cancers is >25 per 10 000 women screened for women in the 50-69 age group. Future targets are based on this measure.
Services for people with disabilities utilise performance indicators gathered as part of the minimum data set collection, financial reports provided to the Productivity Commission as well as local client and service statistics gathered by Disability Services on a quarterly basis. The continued significant increase in access to accommodation support between 2001-02 and 2002-03 is due to the full year effect of additional placements through the Individual Options Program. This trend is expected to continue in coming years. It is anticipated that in 2003-04, 96 per cent of emergency requests for disability respite services will be met.
The target for respite occupancy for 2003-04 is 100 per cent. The actual projection figure for 2003-04 is 101.3 per cent.
The Alcohol and Drug Service National Data Collection reporting has changed from 'Client Registration' reporting to a 'Closed Episode' reporting methodology. The new Performance Measure reflects the total closed episodes within a given financial year. This figure represents the basic activity of the Alcohol and Drug Service over a specific period and is comparable across all jurisdictions.
In 2002-03, seven Mental Health Service (MHS) Units have undergone accreditation. The benchmark of 20 per cent of MHS Service Units being accredited was achieved. Target figures for 2003-04 have been previously projected at 70 per cent of service units. The process has taken longer than anticipated and the actual achieved is likely to be 40 per cent for this time period. In view of this, a benchmark of 60 per cent for 2004-05 is an achievable benchmark within the existing resource base. 100 per cent of MHS units are engaged in the Accreditation Process. Those services not undertaking Accreditation have undertaken a service development review.
The increase in the target for adult dental occasions of service to 18 511 is associated with the recruitment of a number of dentists across the State during 2003-04. The increased target for 2003-04 for children's occasions of service can be attributed to the introduction of dental assistants, which has resulted in marked improvements in service delivery. Improved reporting processes have resulted in the cleansing and refinement of the data, which has had an impact on previously reported figures.
All residential aged care sites achieved re-accreditation by September 2003.
Improvements in case mix reporting have shown that the type and number of patients treated in district hospitals have remained appropriate to the expected level of need. Development of multi-purpose services allows greater flexibility between hospital and aged-care bed classifications.
The substantial increase in the number of palliative care clients accessing the service in 2003-04 illustrated the impact of two new palliative care medical specialists in the North and North-West regions, and a coordinated strategy to raise community awareness of the service.
Chapter 5: Health and Human Services 139 Output Group 2: Children and Families Description
The Children and Families Output Group consists of a range of complementary services for children, young people, families, individuals and the communities that support them. The services aim to improve the health and well being and the safety of these clients and are delivered through:
• the provision of accessible information about health promotion and illness prevention for children, young people, families and individuals directed at enabling people to manage their own health and well being, for example, parenting information;
• universal screening and assessment services for children, young people, families and individuals aimed at identifying problems early, for example, delayed physical growth or mental development in young children;
• early intervention services for children, young people, families and individuals, aimed at reducing their risk to more serious problems and their need for more specialist services, for example, postnatal depression;
• a range of support services for vulnerable and at risk clients, which include financial and personal counselling, intensive family support, and access to specialised services, for example, gambling support services;
• care and protection services for children and young people at risk, including the statutory elements of child protection, and out-of-home care;
• advice and assessment for local and overseas adoption;
• domestic violence services;
• restorative youth justice services for young offenders 10-18 years including supervision, support and rehabilitation either in a community setting or at the Ashley Youth Detention Centre;
• services for people who are homeless including supported accommodation, and access to a range of specialised support to assist people to maintain secure and appropriate accommodation; and
• community support services offered through a range of locations such as neighbourhood houses, adolescent community placements, shelters, counselling services, and family support services.
In 2004-05, the services in the Children and Families Output Group will be provided through five Outputs. These Outputs are:
• Child and Family Services - provision of care and protection for children, with an emphasis on supporting and strengthening families and communities, including provision of domestic violence crisis and adoption services;
• Family, Child and Youth Health Services – provision of information, screening, early recognition and intervention services through child health centres, parenting centres, child development units, and youth health services;
• Youth Justice Services – provision of community based and custodial restorative youth justice services that include case management, rehabilitation and support for young offenders;
140 Chapter 5: Health and Human Services • Community Partners – provision of community support for individuals and families, including neighbourhood houses and services for homeless people or people at risk of homelessness by brokering funds to community-based services; and
• Office of the Commissioner for Children – investigation, reporting and the provision of advice on any matters which affect the health, welfare, care, protection and development of children, either at the request of the Minister for Health and Human Services or on the Commissioner's own initiative. The Commissioner for Children is an independent statutory office, and not part of the Department's service delivery process and the Department's role is to provide administrative and financial support.
Whilst not a separate output, the Gambling Support Bureau is also located within the policy support arm of the Children and Families Output Group, and provides a range of services to people at risk of, or affected by, problem gambling. These services include research, community education, health promotion, and the administration of the charitable grants program. The Gambling Support Bureau works collaboratively across government and with the Tasmanian Gaming Commission to administer the Community Support Levy.
A further significant service is the Our Kids Bureau, also located in the Output Group. The Our Kids Bureau has a role across the Department and more broadly across government through collaborative work with other government departments and the community to improve the outcomes for Tasmanian children by identifying and initiating policy and best practice services for children and their families based on the most contemporary evidence available and by focusing on addressing inequities.
In the coming year, there will be further development of the services within the Output Group to ensure they are focused on delivering an appropriate mix of services and accessible to those most in need.
Chapter 5: Health and Human Services 141 Table 5.5: Summary Financial Information - Output Group 2 2003-04 2004-05 Children and Families Budget Budget Variation $'000 $'000 % OPERATING REVENUE Revenue from Government Annual Appropriation1 58 689 65 667 11.9 Other 1 346 1 354 0.6 Investment Income 1 1 .... Grants 4 4 .... Sales of Goods and Services2 32 2 234 .... Other Revenue3 583 4 (99.3) TOTAL 60 655 69 264 14.2
OPERATING EXPENSES Employee Entitlements Salaries and Wages4 23 827 30 190 26.7 Other Employee Related Expenses4 2 532 2 782 9.9 Superannuation4 2 441 2 599 6.5 Depreciation and Amortisation5 723 420 (41.9) Borrowing Costs 3 .... (100.0) Grants and Transfer Payments6 19 706 18 331 (7.0) Supplies and Consumables Consultants 46 32 (30.4) Maintenance and Property Services7 994 2 339 135.3 Communications 674 684 1.5 Information Technology 928 912 (1.7) Travel and Transport 1 047 1 087 3.8 Medical, Surgical and Pharmacy Supplies 1 1 .... Advertising and Promotion 33 28 (15.2) Other Supplies and Consumables 9 899 10 512 6.2 TOTAL 62 854 69 917 11.2
EXPENSE BY OUTPUT 2.1 Child and Family Support Services8 25 103 30 380 21.0 2.2 Family, Child and Youth Health Services9 10 316 11 508 11.6 2.3 Youth Justice Services10 10 176 10 933 7.4 2.4 Community Partners11 16 968 16 798 (1.0) 2.5 Office of the Commissioner for Children 291 298 2.4 TOTAL 62 854 69 917 11.2
Notes: 1. The increase in the Annual Appropriation represents the provision of additional funding to maintain child protection services, the 'Safe at Home' initiative and costs associated with salary and wage indexation. 2. The increase is primarily due to the Neighbourhood House program being funded in 2004-05 from the Community Support Levy. This program was formerly funded from the Annual Appropriation.
142 Chapter 5: Health and Human Services 3. The decrease in Other Revenue is attributable to the reclassification of Other Revenue items to the Sale of Goods and Services category. 4. The increases in Salaries and Wages, Other Employee Related Expenses and Superannuation reflect additional funding for salaries and increased staffing resources for child protection and Child and Family Support Services. 5. A recent stocktake of the Department's buildings and a review of depreciation rates resulted in decreased building depreciation charges in 2004-05. 6. For the Community Partners Output, the 2003-04 Budget includes expenditure for projects carried over from 2002-03. Project carry over into 2004-05 is at a lower level. The core budget is consistent between the years. 7. The increase in Maintenance and Property Services costs is attributable to the reclassification of costs such as programmed and general maintenance of land and buildings, plant and equipment and furniture and fittings to this expenditure category. These expenses were formerly reported under the Other Supplies and Consumables category. 8. The increase in Child and Family Support Services is attributable to increased funding for child protection services, carers and service providers and the 'Safe at Home' initiative. 9. The increase in Family, Child and Youth Health Services is primarily due to increased funding in relation to salary and wage indexation and increases in nursing allowances. 10. The increase in Youth Justice reflects an anticipated increase in activity in this Output, based on prior year activity increases. 11. For the Community Partners Output, the 2003-04 Budget included expenditure for projects carried over from 2002-03. Project carry over into 2004-05 is at a lower level than in 2003-04.
Major Issues and Initiatives for 2004-05
In 2004-05, the Output Group will focus on the key business areas outlined below. In developing a service system that provides a continuum of care through the provision of primary, secondary and tertiary services, the Department will: • review and refocus child health and parenting services to align with this policy position;
• develop parenting information and services that are universally available to all Tasmanian parents, including the establishment of a 1 300 parenting line;
• further the development, in partnership with indigenous organisations, of placement strategies for indigenous children; and
• fully implement the Looking After Children case management model, to ensure the best outcomes for children who are in out of home care. In improving the efficiency and effectiveness of services provided to individuals, children and families, the Department will: • support the implementation of the Government's initiative, 'Safe at Home' – A Criminal Justice Framework for Responding to Family Violence in Tasmania, through enhancing the provision of domestic violence services, within the context of the criminal justice framework, including the development of therapeutic services for adult and child victims; and
• commence work on the development of bail options and post release programs (including accommodation support) for young offenders. In building community capacity, the Department will: • establish two Early Years Centres in the North and South of the State, with the aim of improving outcomes for the children of families in communities with a high proportion of teenage mothers;
• review the role and purpose of Family Support Services and the Intensive Family Support Team to ensure that they are appropriately targeted and that the services they provide are relevant and effective;
• establish the teenage pregnancy prevention alliance which aims to reduce the rate of teenage pregnancy in Tasmania towards the national average;
Chapter 5: Health and Human Services 143 • develop and implement strategies to prevent in home injuries in childhood; and
• develop a kinship care program, with a focus on maintaining family connectedness and reunification, where possible. In improving the capacity and performance of the Output Group to enhance responsiveness and accountability, the Department will: • review the legal provisions of the Children, Young Persons and their Families Act 1997 to ensure that processes are timely and effective;
• undertake a state based evaluation of the Supported Accommodation Assistance Program (SAAP) IV Agreement to inform the development of integrated service models and the renegotiation of the SAAP V Agreement; and
• continue to progress work on the development of an information management system.
Table 5.6: Performance Information – Output Group 2 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Proportion of child protection notifications referred for investigation1 % n.a. n.a. 25 TBD Proportion of finalised child protection investigations that were substantiated % 39.9 38.9 40.0 40.0 Rate of children on care and protection orders Per 1 000 population 3.9 5.1 5.3 5.3 Proportion of births registered with Family, Child & Youth Health % 93.0 87.0 90.0 95.0 Total admissions to Ashley YDC Number 129 156 180 180 Total individuals admitted to Ashley YDC Number 123 82 110 110 Total community service orders - new Number 173 182 200 200 Total community conferences – new Number 359 334 380 380 Proportion of Supported Accommodation Assistance Program (SAAP) clients with a support plan2 % 67.2 69.2 68.0 69.0 Change to independent housing type by clients after SAAP intervention per cent 78.2 79.9 78.0 79.0
Notes: 1. As this is a new indicator, targets will be set following a full year of data collection in the baseline year. 2. This a raw figure and a significant number of support periods do not require a support plan.
Performance Information Comments
The Child Protection Advice and Referral Service (CPAARS) commenced operation on 1 July 2003. At this time, several changes were made to the recording process. Prior to this time, notifications of child harm and maltreatment and notifications of child and family concern were separately counted and reported. The introduction of CPAARS provided the opportunity to bring recording practices in line with other states.
144 Chapter 5: Health and Human Services Accordingly, the performance indicator, the proportion of child protection notifications referred for investigation, has been included. Estimates to date indicate that this figure will be approximately 25 per cent in 2003-04, but it is difficult to determine targets for the future until a full year of data has been collected.
The proportion of finalised child protection investigations that are substantiated is expected to remain steady.
The rate of children on care and protection orders is expected to increase slightly this year, largely due to an increase in short-term care and protection orders. As the rate at which children are discharged from orders is lower than the rate of children admitted to new orders, the absolute number of children on orders is increasing. This is not necessarily reflective of an increase in levels of abuse, but is affected by a range of factors, such as the age of the child when they first come onto an order. 71 per cent of children admitted to care and protection orders in 2002-03 were aged nine years or less. Potentially, many of these children could be in the child protection system for between nine and 17 years.
The proportion of births registered with the Family, Child and Youth Health Service is an important measure of the effectiveness of the service to engage new families in the screening and preventative services required to monitor newborn infants. The target of 80 per cent of births registered with the Service was exceeded in 2002-03 and sustained improvement in this target is anticipated.
The number of admissions to the Ashley Youth Detention Centre has increased in 2003-04 over the previous year, but was still lower than predicted. The number of individuals has also increased but the average number of admissions per young person is expected to decline slightly.
During 2003-04, the Department has, in collaboration with police and court systems, placed greater priority on diversionary strategies including community based options and increased use of community conferencing, which is reflected in the projected increases in both community service orders and community conferences for 2003-04 and the coming years.
Under the Community Partners Output, the Supported Accommodation Assistance Program (SAAP) purchases services from the community sector to support individuals and young people who are homeless or at risk of homelessness. The existence of an agreed support plan is an indicator of service quality. However, an agreed support plan may not be appropriate for some support periods (such as when a support period is short-term) and is therefore not required. During 2002-03, 69 per cent of all clients had case plans in place.
During 2002-03, the proportion of clients moving to independent housing after a SAAP intervention increased slightly.
Output Group 3: Hospitals and Ambulance Service Description
The mission of the Hospitals and Ambulance Service Output Group is to work together to provide quality hospital and ambulance services.
A wide range of hospital based treatment and care is provided from the Royal Hobart Hospital, the Launceston General Hospital and the North West Regional Hospital. Tertiary services are provided in limited locations and include neurosurgery, cardiac surgery, neo-natal intensive care, vascular surgery, specialised paediatric surgery and a severe burns unit. Secondary hospital services such as general medicine and general surgery, orthopaedics, obstetrics and gynaecology, and paediatric services are more widely available statewide.
Chapter 5: Health and Human Services 145 Some hospital services are purchased from the private sector. Major contracted patient services include maternity services (North West Private Hospital), acute services to public patients (Mersey Community Hospital) and ophthalmology (Tasmanian Eye Clinic, Launceston Eye Clinic and North West Private Hospital). Diagnostic pathology and imaging services are also contracted for the North West Regional Hospital, as are nuclear medicine services at the Launceston General Hospital. There is also a partnership between the Royal Hobart Hospital and the Hobart Private Hospital in respect of some patient care and support services.
The Tasmanian Ambulance Service provides emergency ambulance care, rescue and transport services and a non-emergency patient transport service through a network of stations statewide. It also coordinates a range of other providers of road ambulance services as well as fixed and rotary wing air services. Tasmania has a wide dispersal of highly qualified paramedics throughout urban and rural areas supported by over 500 volunteer officers who work alongside paramedics in 13 locations, as well as from 19 wholly volunteer stations.
The Output Group maximises health gains by ensuring access to quality, best value hospital and ambulance services that meet individual and community need. It also contributes to the quality of life of people with disability and chronic illness by the provision of appropriate acute services as required.
In 2004-05, the Outputs provided under this Output Group are:
• Clinical Support Services – health professional services such as physiotherapy, occupational therapy, speech pathology, podiatry, social work, and nutrition;
• Medical Services – includes general and specialist medical services, medical outpatient clinics and emergency medicine;
• Surgical Services – emergency and elective surgical services including services contracted to the private sector and surgical outpatient clinics;
• Women's and Children's Services – includes obstetrics and gynaecological services, neo-natal intensive care, paediatric surgery and medicine;
• Diagnostic and Pharmacy Services – pharmacy, pathology and imaging services;
• Ambulance Services – includes emergency ambulance care and rescue and transport services to all urgent and priority cases including medical emergencies, road accidents and industrial and other accidents including marine emergencies. A specialised non-urgent patient transport service is also provided between private and public hospitals, nursing homes, private residences, diagnostic facilities and other institutions; and
• Forensic Medicine Services – includes forensic medical services, forensic pathology and clinical forensic medicine.
146 Chapter 5: Health and Human Services Table 5.7: Summary Financial Information – Output Group 3 2003-04 2004-05 Hospitals and Ambulance Service Budget Budget Variation $'000 $'000 % OPERATING REVENUE Revenue from Government Annual Appropriation1 400 571 422 832 5.6 Other2 518 120 (76.8) Investment Income 284 140 (50.7) Grants3 2 024 1 221 (39.7) Sales of Goods and Services 35 796 37 895 5.9 Proceeds from the Disposal of Assets 60 .... (100.0) Other Revenue4 15 306 11 801 (22.9) TOTAL 454 559 474 009 4.3
OPERATING EXPENSES Employee Entitlements Salaries and Wages5 239 317 255 057 6.6 Other Employee Related Expenses5 25 503 26 145 2.5 Superannuation 23 822 24 221 1.7 Depreciation and Amortisation 11 466 10 957 (4.4) Borrowing Costs 30 .... (100.0) Grants and Transfer Payments 20 452 20 219 (1.1) Supplies and Consumables Consultants 466 319 (31.5) Maintenance and Property Services6 9 703 18 961 95.4 Communications 2 447 2 597 6.1 Information Technology 5 783 5 352 (7.5) Travel and Transport 3 020 2 890 (4.3) Medical, Surgical and Pharmacy Supplies 80 632 82 454 2.3 Advertising and Promotion 81 67 (17.3) Other Supplies and Consumables6 45 013 36 993 (17.8) Other Expenses 60 60 .... TOTAL 467 795 486 292 4.0
EXPENSE BY OUTPUT 3.1 Clinical Support Services 22 368 23 515 5.1 3.2 Medical Services 170 145 176 347 3.7 3.3 Surgical Services 134 936 141 963 5.2 3.4 Womens and Children Services 53 325 56 289 5.6 3.5 Diagnostic and Pharmacy Services7 62 711 62 119 (0.9) 3.6 Ambulance Services8 23 264 25 054 7.7 3.7 Forensic Medicine Services9 1 046 1 005 (3.9) TOTAL 467 795 486 292 4.0
Chapter 5: Health and Human Services 147 Notes: 1. The increase in the Annual Appropriation primarily represents the provision of additional funding for Cardiology Services at the Launceston General Hospital, funding to maintain acute Hospital and Ambulance Services and additional funding for salary and wages. 2. The decrease in Other Revenue from Government relates to reduced amounts being carried forward from 2003-04 under section 8A(2) of the Public Account Act 1986. 3. The reduction in Grants is primarily due the Commonwealth funded Innovative Care Rehabilitation Service (ICRS) Pilot program ceasing. 4. The reduction in Other Revenue is due to some revenue now being reported under the Sales of Goods and Services. 5. The increases in Salaries and Wages, Other Employee Related Expenses and Superannuation reflect salary indexation, including funding for improved remuneration for nurses and ambulance officers, and additional funding for Cardiology Services. 6. The increase in Maintenance and Property Services costs is attributable to the reclassification of costs such as programmed and general maintenance of land and buildings, plant and equipment and furniture and fittings to this expenditure category. These expenses were formerly reported under the Other Supplies and Consumables and Other Expenses categories. 7. For the Diagnostic and Pharmacy Services Output, the 2003-04 Budget included expenditure for projects carried over from 2002-03. Project carry over into 2004-05 is at a lower level. The core budget is consistent between the years. 8. The increase in Ambulance Services reflects the full year impact of the re-negotiated Air Ambulance arrangements. 9. For the Forensic Medicine Services Output, the 2003-04 Budget included expenditure for projects carried over from 2002-03. Project carry over into 2004-05 is at a lower level than in 2003-04.
Major Issues and Initiatives for 2004-05
During 2004-05, initiatives for this Output Group are aimed at strengthening service sustainability and improving service safety and quality. Sustainability Sustainability addresses the Output Group's service delivery issues such as service redesign, integration of care, efficient and adequate infrastructure and organisational capacity. Initiatives include:
• a further $1.3 million to reduce waiting times for elective surgery as part of the Elective Surgery Priority Plan;
• a new Department of Emergency Medicine for the Royal Hobart Hospital;
• additional funding of $1.5 million to assist with the implementation of the new national arrangements for blood and blood products which were introduced during 2003-04;
• $400 000 to provide enhanced cardiology services at the Launceston General Hospital;
• commissioning of CT scanners at both the Royal Hobart Hospital and Launceston General Hospital, providing the latest in technology and treatment for patients;
• additional funding to enable improved arrangements for genetic testing through the combining of screening programs for cancer genetic and neonatal testing by a single provider;
• tailoring the implementation of services at the acute level to those that will improve the health of the ageing community of Tasmania; and
• encouraging the establishment of substitute hospital services and alternative models of care. Safety and Quality Safety and quality is concerned with safe practice and environment, human resource management, information management and improving our performance. Initiatives include:
148 Chapter 5: Health and Human Services • development of organisational capacity and organisational culture through changing the workforce configuration to enhance flexibility and enable the organisation to respond to increased specialisation of the workforce in the provision of acute services;
• further implementation of the nursing hours per patient day model;
• additional funding in excess of $100 million over four years will be provided for improved remuneration for nurses and ambulance officers;
• further development of training programs for volunteer ambulance officers and wilderness response personnel including provision of computer and internet capabilities in volunteer ambulance stations and promotional material to aid ambulance volunteer recruitment and retention;
• further development of patient activity data and costing systems to provide a rigorous basis for targeting hospital services and monitoring performance;
• further development of an integrated statewide hospital information system project;
• continuation of a statewide hospital patient satisfaction survey and Tasmanian Ambulance Service patient satisfaction survey;
• the redesign, prioritisation and evaluation of services to improve quality of care, access and efficiency, including establishing processes for future service development;
• increasing the involvement of consumers in service planning, delivery, monitoring and evaluation and increasing consumer access to reliable, timely, relevant and accurate information about their own health options; and
• progressing safety and quality issues and initiatives, focussing specifically on clinical risk management, strengthening clinical governance structures and consistent statewide incident reporting and monitoring.
Chapter 5: Health and Human Services 149 Table 5.8: Performance Information – Output Group 3 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Patient Satisfaction with Hospital Services % 93.0 95.0 95.0 95.0 Unplanned Readmissions % 1.4 1.0 <2.1 <2.1 Admitted Patients – Number of Weighted Separations Number 80 964 82 666 83 666 83 666 Presentations – Departments of Emergency Medicine Number 84 296 83 007 83 007 83 007 Day Surgery Rate (elective) % 57.5 57.4 60.0 60.0 Proportion of urgent patients admitted within 30 days for elective surgery % 72.067.0 69.0 70.0 Proportion of category 1 resuscitation patients attended immediately by Department of Emergency Medicine % 88.6 90.9 100.0 100.0 Satisfaction with Ambulance Services % 98.1 97.0 98.0 98.0 Total ambulance service activity (ambulance responses) Number 46 876 49 947 49 947 49 947 Ambulance Emergency Response Times (median) Minutes 10.2 10.0 10.0 10.0
Performance Information Comments
Rate based targets are equivalent to the Australian average where available or benchmarks determined by the College of Emergency Medicine, the Australian Council of Health Care Standards or other national bodies.
In summary, the performance indicator information highlights that:
• in the latest survey of hospital patients (September 2002), patient satisfaction increased to 95 per cent. This satisfaction rate compares favourably with other Australian jurisdictions;
• as a measure of safety and quality, unplanned hospital readmissions in Tasmania continue to decrease, and the latest 2003-04 estimate remains at a low 1.0 per cent which is well below the national average of 2.1 per cent for public hospitals;
• emergency department activity is expected to be maintained at similar levels to 2002-03. Elective day surgery rates are expected to show a large increase over levels in 2002-03, which brings Tasmania into line with hospitals nationally;
• the proportion of urgent patients admitted within 30 days for elective surgery in 2003-04 is likely to be about the same as in 2002-03;
• the proportion of Category 1 resuscitation patients (life-threatening cases) attended to immediately in the Departments of Emergency Medicine has increased in 2003-04. This improvement can be attributed to the introduction of clinical audits for emergency patients across the hospitals. The continuation of this practice is likely to continue to increase these figures towards the national standard of 100 per cent;
150 Chapter 5: Health and Human Services • the counting of Tasmanian Ambulance Service (TAS) total service activity for 2003-04 is expected to increase over 2002-03 levels. The counting of ambulance activity has recently changed from counting patients transported to counting ambulance responses. Data for 2001-02 is unavailable for comparison due to this change in counting; and
• TAS continues to have a high level of patient satisfaction. The median ambulance emergency response time has remained steady in recent years at approximately 10 minutes.
Output Group 4: Housing Tasmania Description
The Department, through the Housing Tasmania Output Group, aims to ensure access to adequate, affordable, appropriate and secure housing for Tasmanians on low incomes, particularly those who have special or complex housing needs. Key clients for this Output Group are people on low incomes who require assistance to gain entry to and maintain affordable housing.
Outputs provided under this Output Group are:
• Public Rental Assistance;
• Private Rental Assistance;
• Community Sector Housing; and
• Home Ownership Assistance.
An important focus for the Output Group during 2004-05 will be continuing with the implementation of the whole-of-government Affordable Housing Strategy. This Strategy has a broad tenure focus. It relates to housing assistance provided through public, private and community based rental streams and home ownership. However, it also places significant emphasis on alternative funding, delivery and management models of affordable housing.
Services to Housing Tasmania clients are provided statewide through a four-area service delivery model, incorporating seven local service centres and the State Administration office in Hobart.
Maintenance services for properties owned by Housing Tasmania are provided through contractual arrangements with local tradespeople and businesses. The strategic management of the property assets, including a portfolio of 12 500 social housing dwellings located statewide, is a key responsibility of this Output Group.
Chapter 5: Health and Human Services 151 Table 5.9: Summary Financial Information - Output Group 4 2003-04 2004-05 Housing Tasmania Budget Budget Variation $'000 $'000 % OPERATING REVENUE Revenue from Government Annual Appropriation 28 699 28 575 (0.4) Investment Income1 3 000 9 317 210.6 Sales of Goods and Services 45 000 45 933 2.1 Proceeds from the Disposal of Assets .... 4 .... Other Revenue2 .... 805 .... TOTAL 76 699 84 634 10.3
OPERATING EXPENSES Employee Entitlements Salaries and Wages 9 700 10 156 4.7 Other Employee Related Expenses 1 345 1 340 (0.4) Superannuation 1 880 1 899 1.0 Depreciation and Amortisation 12 095 12 211 1.0 Borrowing Costs 13 717 13 299 (3.0) Grants and Transfer Payments 3 720 3 663 (1.5) Supplies and Consumables Consultants 306 250 (18.3) Maintenance and Property Services3 20 940 39 920 90.6 Communications 551 453 (17.8) Information Technology 846 905 7.0 Travel and Transport 567 535 (5.6) Medical, Surgical and Pharmacy Supplies 1 .... (100.0) Advertising and Promotion 37 33 (10.8) Other Supplies and Consumables3 26 066 12 176 (53.3) Other Expenses4 6 445 500 (92.2) TOTAL 98 216 97 340 (0.9)
EXPENSE BY OUTPUT 4.1 Public Rental Assistance4 88 458 82 114 (7.2) 4.2 Private Rental Assistance 3 245 3 464 6.7 4.3 Community Sector Housing 1 786 1 862 4.3 4.4 Home Ownership Assistance5 4 727 9 900 109.4 TOTAL 98 216 97 340 (0.9)
Notes: 1. The increase in Investment Income is partly due to the inclusion of funds generated by the HOAP scheme that are in excess of administration costs and lending. The increase is also due to changed accounting practice in relation to borrowing activity. 2. The increase in Other Revenue is due to maintenance and insurance recoveries now being reported under this category. These recoveries were formerly reported under Sales of Goods and Services.
152 Chapter 5: Health and Human Services 3. The increase in Maintenance and Property Services costs is attributable to the reclassification of costs such as programmed and general maintenance of land and buildings, plant and equipment and furniture and fittings to this expenditure category. These expenses were formerly reported under the Other Supplies and Consumables and Other Expenses categories. 4. The reductions in the Public Rental Assistance Output and the Other Expenses expenditure category are due to a forecast reduction in the accrual accounting entry for Loss on Sale of Assets. This is due to both a reduced level of sales under the Government's Affordable Housing Strategy, as well as increased returns due to changed market conditions. 5. The increase in the Home Ownership Assistance Output is due to additional funds generated under the HOAP scheme, in excess of that required for direct lending and administrative costs. These funds were not previously budgeted for, and will be used to retire existing HOAP debt in accordance with the Government's Fiscal Strategy.
Major Issues and Initiatives for 2004-05
The major strategic priority for this Output Group for 2004-05 is the further development and implementation of Stage One of the Affordable Housing Strategy. Stage One is planned to cover the period until 31 December 2005.
The Affordable Housing Strategy (AHS) aims to ensure there is safe, adequate and affordable housing for Tasmanian's in receipt of low incomes. The Strategy aims to increase the supply of affordable housing across the whole housing system, to increase the support and assistance available to those in highest need and to develop a new conceptual perspective when designing and delivering future housing responses across all tenure types.
Major initiatives of the AHS are grouped into four categories and include in Stage One:
Alternative Financing and New Delivery Models, including:
• partnerships with the community and private sectors to provide up to 800 new affordable housing options;
• expanding and enhancing affordable home ownership through Streets Ahead and the Home Ownership Assistance Program (HOAP); and
• urban renewal and community development initiatives.
Capital Investment Program Initiatives, including:
• a capital works program to acquire up to 420 new public housing dwellings, upgrade up to 270 existing public housing dwellings and to upgrade or replace six Disability Group Homes;
• a partnership with the University of Tasmania to develop efficient home designs and alternative models for housing supply such as 'a shop top demonstration project';
• a sales program of 150 public housing properties per annum over four years; and
• employment and training opportunities for Tasmanians within AHS initiatives.
Private Rental and Services Initiatives, including:
• enhanced access to and maintenance of private rental tenancies through expanded eligibility for the Private Rental Support Scheme with concurrent enhanced delivery of tenancy and other supports to those who experience difficulty in sustaining private rental tenancies;
• the establishment of a Statewide Consortium of Private Landlords to ensure private rental properties are available to those on low incomes by providing a range of incentives and supports to landlords and their tenants;
Chapter 5: Health and Human Services 153 • establishing four new Supported Residential Facilities to assist up to 80 people statewide; and
• developing a Housing Information and Referral Service as a single point of contact for people with housing-related enquiries.
Public Housing Management and Policy Initiatives, including:
• ensuring public housing is targeted to those in greatest need;
• developing a Tenancy Management Framework to ensure public housing tenancies are sustained wherever possible;
• improved service coordination across health and human services; and
• providing enhanced opportunities for public housing tenants to participate in their communities.
The implementation of the AHS is governed by a whole-of-government steering committee and managed by a project team located within Housing Tasmania. It is managed in accordance with the Department of Premier and Cabinet's Project Management Framework and Guidelines. A high-level reference group is providing guidance in developing initiatives and benchmarks under the AHS. This group includes representatives from State and Local Government, the building and finance industry and the not-for-profit sector. The Affordable Housing Strategy is a four-year framework comprising 84 separate initiatives that will be implemented via a staged approach over 2004 to 2008 to ensure there is safe, adequate and affordable housing for Tasmanian's in receipt of low incomes.
Table 5.10: Performance Information – Output Group 4 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Overall satisfaction with service: Satisfied % 70.0 70.2 72.0 74.0 Dissatisfied % 14.0 13.8 11.0 10.0 Proportion of Public Housing Households with Overcrowding: % 0.20.7 0.5 0.3 Public Housing occupancy rates: % 95.7 97.1 98.0 98.0 New public housing applications by special need:1 Youth (under 25 years) Number 1 627 1 447 1 360 1 300 Aged (65 years +) Number 247 258 290 290 Family violence Number 556 311 310 300 Disability Number 330 378 980 1 000 Homeless Number 1 818 1 379 1 280 1 100 Culturally and Linguistically Diverse Number 274 153 210 150 Indigenous Number 481 440 430 430 Full net cost per public household dwelling $ 7 700 7 834 7 500 7 300 Proportion of new allocations to those in Greatest Need, in under three months % 87.3 89.1 89.0 90.0
Note: 1. Targets for applications from 'special need' groups are revised down for 2004-05, due to implementation of initiatives under the Affordable Housing Strategy.
154 Chapter 5: Health and Human Services Performance Information Comments
The performance information above relates to performance prior to the introduction of AHS initiatives. The focus is largely on public housing and its operations. While public housing will remain an important component in a future affordable housing system in Tasmania, the intention is that opportunities to access affordable housing across the housing market expand over the course of the Strategy implementation.
Occupancy rates in public rental housing remain high, exceeding those in the private rental sector each month since May 2003. Turnaround time has decreased over the same period, resulting in properties being re-allocated more quickly than in previous years. Private sector trends of high cost and reduced availability for low income renters have continued over the year, resulting in fewer tenants leaving their public rental home. As a result, the number of public rental tenancies ending each month has continued to decrease, resulting in fewer opportunities overall to house applicants from the waiting list.
Category 1 applicants for public rental housing continue to gain access ahead of applicants in other categories, with 53 per cent of new allocations for the year-to-date (April 2004), being made to Category 1 applicants. A further 32 per cent of new allocations were made to applicants in Category 2. Category 1 applicants generally have a combination of specific needs that impact on their housing requirements, often arising from disabilities or ill health, as well as limited financial means to access appropriate housing in the private sector.
The National Social Housing Survey (Public Housing) was undertaken during the year, with Tasmania achieving similar or increased results for satisfaction, and reduced levels of dissatisfaction compared with previous years. In addition to gauging satisfaction with strategic parameters of service, the survey seeks to determine a range of outcome information. In terms of the benefits derived from living in public rental housing, 90 per cent of survey respondents indicate that they felt more settled, 90 per cent felt better able to manage their money/rent, 88 per cent were able to remain living in the area they wanted, 86 per cent felt better able to cope generally, 81 per cent enjoyed better access to services, 75 per cent felt part of the community, and 66 per cent felt they enjoyed better health. These results were equivalent to, or exceeded those reported from the 2001 survey.
Chapter 5: Health and Human Services 155 Administered Items Grants and Subsidies
Table 5.11 provides a summary of Grants and Subsidies paid by the Department of Health and Human Services. A brief description of each payment follows the Table.
Table 5.11: Grants and Subsidies Financial Summary for the Department of Health and Human Services 2003-04 2004-05 Budget Budget Variation $'000 $'000 % REVENUE Revenue from Government Annual Appropriation1 13 526 12 164 (10.1) TOTAL 13 526 12 164 (10.1)
EXPENSES Community Service Activity: Aurora Energy Pty Ltd - Pensioner Concessions1 13 526 12 164 (10.1) TOTAL 13 526 12 164 (10.1)
Note: 1. The decrease in funding and associated payment for the Aurora Energy Pty Ltd Community Service Activity for pensioner concessions reflects the revised estimated cost of providing winter electricity concessions to eligible beneficiaries.
Community Service Activity: Aurora Energy Pty Ltd – Electricity Concessions Under arrangements for the electricity supply industry in Tasmania, an agreement for the provision of Pensioner and Health Care Card holder concessions has been established between the Government and Aurora Energy Pty Ltd as a Community Service Activity.
The Department of Health and Human Services provides funding to Aurora Energy for the purpose of providing a daily subsidy to eligible pensioners. This amounts to an annual discount for eligible Tasmanian pensioners of $177. The concession is also available to Commonwealth Health Care Card holders for the two winter quarters.
The term Community Service Activity (CSA) is used to describe non-commercial services provided by State-owned Companies such as Aurora Energy to differentiate from Community Service Obligations (CSOs) which are provided by Government Business Enterprises and have a specific meaning under the Government Businesses Enterprise Act 1995.
An amount of $12.2 million is expected to be paid by the Department on behalf of the Government to Aurora Energy to fund its CSA in 2004-05. CSA funding is linked to the Tasmania Together Goal 1: 'all Tasmanian's have a reasonable standard of living with regard to food, shelter, transport, justice, education, communication, health and community services'.
156 Chapter 5: Health and Human Services Revenue Collected on Behalf of the Consolidated Fund
Table 5.12 summarises the Revenue Collected on behalf of the Consolidated Fund by the Department of Health and Human Services. A brief description of the revenue items follows the Table.
Table 5.12: Revenue Collected on Behalf of the Consolidated Fund 2003-04 2004-05 Budget Budget Variation $'000 $'000 % REVENUE Grants 77 767 80 656 3.7 Sales of Goods and Services 16 16 .... TOTAL REVENUE 77 783 80 672 3.7
Transfers to the Consolidated Fund Commonwealth Recurrent Grants 77 767 80 656 3.7 Other 16 16 .... TOTAL TRANSFERS TO THE CONSOLIDATED FUND 77 783 80 672 3.7
Home and Community Care The Home and Community Care (HACC) Program is a joint Commonwealth and State funded program designed to provide services that support the frail aged and younger disabled people to live independently in their own homes and participate in the community.
The program is governed by the Home and Community Care Act 1985 (Commonwealth) and is currently operationalised in the form of the HACC Amending Agreement, due to expire in June 2004. The agreement will continue for a further 12 months pending the negotiation of a new Community Care Agreement.
Under the Agreement, 2004-05 Commonwealth funding is anticipated at $18.7 million. Supported Accommodation Assistance Program The Supported Accommodation Assistance Program (SAAP) is a joint Commonwealth and State funded program designed to respond, through the provision of support, to the needs of people who are or at risk of homelessness.
The program is governed by the Supported Accommodation Assistance Act 1994 (Commonwealth) and is currently operationalised in the form of the SAAP IV 2000-05 Agreement.
Under the agreement, 2004-05 Commonwealth funding is anticipated at $7.2 million. Public Health Outcome Funding Agreement The Public Health Outcome Funding Agreement (PHOFA) is a bilateral funding agreement between the Commonwealth and the State that provides broad banded and special purpose funding from the Commonwealth for a range of public health programs. The present agreement covers the five-year period 1999-00 to 2003-04. A new agreement is currently being negotiated for the 2004-05 financial year and beyond.
Under the agreement, 2004-05 Commonwealth funding is anticipated at $3.9 million.
Chapter 5: Health and Human Services 157 Commonwealth, State and Territories Disability Agreement The Commonwealth, States and Territory Disability Agreement (CSTDA) provides a national framework to underpin the provision of specialist disability services to those aged less than 65 years with disability as defined by the State Disability Services Act (1992) and requiring once-off or ongoing support. The current agreement, finalised in July 2003, covers the five year period 2002-03 to 2006-07.
Under the agreement, 2004-05 Commonwealth funding is anticipated at $19.1 million. Highly Specialised Drugs Highly Specialised Drugs (HSD) are medicines for chronic conditions which, because of their clinical use or other special features, are restricted to supply through hospitals having access to appropriate specialist facilities. To prescribe these drugs as pharmaceutical benefit items, medical practitioners are required to be affiliated with these specialist hospital units.
Subsidy for drugs under this program commences following recommendation by the Pharmaceutical Benefits Advisory Committee (PBAC), approval by the Commonwealth Government and the States and Territories accepting the Commonwealth's offer of subsidy. The subsidy is available for the PBAC approved clinical indication only.
Based upon the anticipated level of subsidy to be provided in 2003-04, the 2004-05 subsidy is anticipated at $7.4 million. Commonwealth-State Housing Agreement The Commonwealth-State Housing Agreement (CSHA) is a joint Commonwealth and State arrangement which aims to assist both renters and purchasers to obtain appropriate accommodation. It is mainly concerned with the provision of public housing, but also provides funding for other types of tenure as well. The main identified funding priorities of the CSHA are public housing, community housing, crisis accommodation, Aboriginal rental housing, private rental support and home ownership support.
The current CSHA covers a five year period until June 2008. 2004-05 Commonwealth funding is anticipated at $24.4 million.
Capital Investment Program Non-Housing
The Capital Investment Program (CIP) for the Department has been developed from a strategic perspective to assist the Department meet its service delivery objectives efficiently and effectively. This has resulted in a program of works over the last three years that focuses on the establishment or renewal of District Hospitals, Multi-Purpose Services and Community and Health Centres in key regional locations, in addition to major refurbishment and equipment replacement at the Royal Hobart Hospital. This focus has supported the emphasis on preventative and primary health care. Projects in the current program are progressing in accordance with previously determined timeframes, although the Department is coming under increasing pressure from unprecedented rises in construction costs over the last year.
The continuing implementation of this strategy in 2004-05 will result in the commencement of the construction phase at the Department of Emergency Medicine at the Royal Hobart Hospital, a completely new facility at Queenstown and upgrading of the North East Soldiers' Memorial Hospital at Scottsdale. Initial funding also becomes available in 2004-05 to commence planning at Smithton and George Town.
158 Chapter 5: Health and Human Services Projects which have been completed in 2003-04 are:
• Deloraine District Hospital: completed in February 2004, this $2.5 million project has upgraded aged-care and sub acute facilities and has provided a modern community health facility;
• Huon Valley Community and Health Centre: completed in September 2003, this $1.5 million project established a new Community and Health Centre at Huonville;
• New Norfolk District Hospital: completed in May 2004, this $1.9 million project has upgraded in-patient facilities and refurbish allied health services at the current site. The project scope was increased to provide six step-down beds for nursing home type patients;
• Sorell Community and Health Centre: completed in January 2004, this $1.2 million project provides a totally new Community and Health Centre for the growing Sorell area;
• Strahan Medical Centre: as part of the West Coast Multi-Purpose Service (of which the Queenstown Hospital is the largest component), a $350 000 upgrade of the existing centre at Strahan is being undertaken with construction commencing in April 2004 and due for completion in June 2004;
• Tasman Multi-Purpose Centre: this project is currently under construction and will be completed in July 2004. In order to integrate with Commonwealth and local priorities, funding for this project has been brought forward from 2004-05. The project will provide a new health facility which is integrated into the recently redeveloped aged care component at the site; and
• Linear Accelerator (Royal Hobart Hospital): the installation and commissioning of the new Linear Accelerator was completed in 2002-03. Under an arrangement with the supplier, payment was to be made in two installments - the second of these being in July 2003.
The following projects will commence in 2004-05:
• Department of Emergency Medicine at the Royal Hobart Hospital: design development and documentation of the project will occur in the second half of 2004 and it is anticipated that the project will go to tender early in 2005. Complex planning issues regarding this project have been resolved in the current year and the functional brief is being developed;
• Hospital Information System: this project was initiated due to the supplier of the current patient administration system ceasing all development and advising the withdrawal of support for the product by December 2005. The project commenced in 2002-03 and provides for the replacement of the current hospital information system with a system that will provide an integrated statewide hospital information system for the Royal Hobart Hospital, the Launceston General Hospital, the North West Regional Hospital and some district hospitals. CIP funding of $6.5 million has been allocated and will be available over three financial years from 2004-05;
• West Coast Health Services: it is anticipated that construction of the new hospital at Queenstown will commence in October 2004, to allow external works to be undertaken during the summer months. Funding has been provided over four years and the project has been staged accordingly; and
• North East Soldiers' Memorial Hospital (Scottsdale): funding for this project becomes available in 2004-05. The Department of Health and Human Services will be in a position to commission a design consultant at that time to progress the design and prepare it for tender late in the financial year.
In addition to the above projects, the Department receives an amount of $78 000 annually for building services maintenance. This funding is used to fund essential works at various locations across the State.
Chapter 5: Health and Human Services 159 Housing
Housing Tasmania has made a strong commitment to align its capital works program in support of the Government's Affordable Housing Strategy (AHS). This commitment will ensure that the Government will be in a position to achieve the broad outcomes sought from the AHS and increase the supply of affordable housing for low income Tasmanians.
It is anticipated that during 2004-05, over $30 million of economic activity will be generated through the housing capital program through the letting of a number of significant redevelopment and construction programs. In recognition of the long-term nature of these projects however, and the current construction climate, a conservative approach has been taken in estimating actual payments in 2004-05.
In addition to the above funding, further economic activity is expected to be generated through the commitment of over $20 million in 2004-05 from the Economic and Social Infrastructure Fund (ESIF) against projects and initiatives under the AHS. This will include funds expended in 2004-05 as well as projects which commence in 2004-05 and are completed in 2005-06.
The major commitments in the 2004-05 housing capital program include the following:
• the commencement of major works at the Windsor Court site in Hobart, which will result in the construction of 53 units;
• the redevelopment of the Dover Street site in Mowbray, which will result in the construction of 32 units;
• the construction of three new Disability Services' homes;
• the upgrading of five major unit complexes and more than 100 individual houses within the existing housing portfolio;
• the replacement of emergency housing for people in crisis;
• in excess of 50 strategic purchases throughout the state; and
• the provision of a number of locally developed community housing solutions for clients with a diverse range of needs including those with mental health issues and those requiring supported housing options.
Further information regarding the Department's Capital Investment Program is provided in Chapter 6 of Budget Paper No 1 Budget Overview 2004-05.
160 Chapter 5: Health and Human Services Table 5.13: Capital Investment Program1 2004-05 Budget $'000 New Projects George Town District Hospital 200 Hospital Information System 1 500 May Shaw Health Centre 568 Scottsdale District Hospital 1 300 Smithton District Hospital 500
Continuing Projects Building Services Maintenance 104 Housing Projects 17 399 RHH Redevelopment Stage 3 1 345 West Coast Multi Purpose Service Development 2 370
TOTAL CAPITAL INVESTMENT PROGRAM 25 286
Note: 1. For more information regarding the Capital Investment Program, see Chapter 6 in Budget Paper No 1 Budget Overview 2004-05.
Chapter 5: Health and Human Services 161 DETAILED BUDGET STATEMENTS
Table 5.14: Output Group Expense Summary for the Department of Health and Human Services 2003-04 2004-05 Budget Budget Variation $'000 $'000 % Minister for Health and Human Services Output Group 1 - Community, Population and Rural Health 1.1 Aged, Rural and Community Health Services1 108 329 114 483 5.7 1.2 Oral Health Services2 12 215 13 299 8.9 1.3 Palliative Care Services 5 871 6 266 6.7 1.4 Public and Environmental Health Services3 10 702 9 929 (7.2) 1.5 Cancer Screening and Control Services 4 773 4 905 2.8 1.6 Population and Health Priorities4 3 905 3 628 (7.1) 1.7 Disability Services5 89 613 96 054 7.2 1.8 Mental Health Services6 55 526 63 844 15.0 1.9 Alcohol and Drug Services7 8 888 8 343 (6.1) 299 822 320 751 7.0 Output Group 2 - Children and Families 2.1 Child and Family Support Services8 25 103 30 380 21.0 2.2 Family, Child and Youth Health Services9 10 316 11 508 11.6 2.3 Youth Justice Services10 10 176 10 933 7.4 2.4 Community Partners11 16 968 16 798 (1.0) 2.5 Office of the Commissioner for Children 291 298 2.4 62 854 69 917 11.2 Output Group 3 - Hospitals and Ambulance Service 3.1 Clinical Support Services 22 368 23 515 5.1 3.2 Medical Services 170 145 176 347 3.7 3.3 Surgical Services 134 936 141 963 5.2 3.4 Womens and Children Services 53 325 56 289 5.6 3.5 Diagnostic and Pharmacy Services12 62 711 62 119 (0.9) 3.6 Ambulance Services13 23 264 25 054 7.7 3.7 Forensic Medicine Services14 1 046 1 005 (3.9) 467 795 486 292 4.0 Output Group 4 - Housing Tasmania 4.1 Public Rental Assistance15 88 458 82 114 (7.2) 4.2 Private Rental Assistance 3 245 3 464 6.7 4.3 Community Sector Housing 1 786 1 862 4.3 4.4 Home Ownership Assistance16 4 727 9 900 109.4 98 216 97 340 (0.9)
162 Chapter 5: Health and Human Services Table 5.14: Output Group Expense Summary for the Department of Health and Human Services (continued) 2003-04 2004-05 Budget Budget Variation $'000 $'000 %
Grants and Subsidies17 13 526 12 164 (10.1)
Other18 17 888 14 257 (20.3)
TOTAL AGENCY 960 101 1 000 721 4.2
Notes: 1. The increase in the Aged, Rural and Community Health Services Output, is attributable to the transfer of service delivery for West Coast Health Service and increased staffing resources for the maintenance of services. 2. The increase in the Oral Health Services Output is primarily attributable to the implementation of the Service Enhancement and Workforce Reform Process and salary and wages indexation. 3. For the Public and Environmental Health Services Output, the 2003-04 Budget included expenditure for projects carried over from 2002-03. Project carry over into 2004-05 is at a lower level than in 2003-04. 4. For the Population and Health Priorities Output, the 2003-04 Budget included expenditure for projects carried over from 2002-03. Project carry over into 2004-05 is at a lower level than in 2003-04. 5. The increase in the Disability Services Output is attributable to the provision of increased funding for the maintenance of services. 6. The increase in the Mental Health Services Output is attributable to the Secure Mental Health Unit implementation and maintenance of services. 7. For the Alcohol and Drug Services Output, the 2003-04 Budget included expenditure for projects carried over from 2002-03. Project carry over into 2004-05 is at a lower level than in 2003-04. 8. The increase in the Child and Family Support Services Output is attributable to increased funding for child protection service, carers and service providers and the 'Safe at Home' initiative. 9. The increase in the Family, Child and Youth Health Services Output is primarily due to increased funding in relation to salary and wage indexation and increases in nursing allowances. 10. The increase in the Youth Justice Services Output reflects an anticipated increase in activity in this Output, based on prior year activity increases. 11. For the Community Partners Output, the 2003-04 Budget included expenditure for projects carried over from 2002-03. Project carry over into 2004-05 is at a lower level than in 2003-04. 12. For the Diagnostic and Pharmacy Output, the 2003-04 Budget includes expenditure for projects carried over from 2002-03. Project carry over into 2004-05 is at a lower level than in 2003-04. 13. The increase in Ambulance Services reflects the full year impact of the re-negotiated Air Ambulance arrangements as well as additional funding for improved remuneration for ambulance officers. 14. For Forensic Medicine Services Output, the 2003-04 Budget included expenditure for projects carried over from 2002-03. Project carry over into 2004-05 is at a lower level than in 2003-04. 15. The reduction in the Public Rental Assistance Output is due to a forecast reduction in the accrual accounting entry for Loss on Sale of Assets. This is due to both a reduced level of sales under the Government's Affordable Housing Strategy, as well as increased returns due to changed market conditions. 16. The increase in the Home Ownership Assistance Output is due to additional funds generated under the HOAP scheme, in excess of that required for direct lending and administrative costs. These funds were not previously budgeted for, and will be used to retire existing HOAP debt in accordance with the Government's Fiscal Strategy. 17. The decrease in funding and associated payment under Grants and Subsidies relates to payments to Aurora Energy for pensioner concessions due to the lower than anticipated take-up of the winter concession. 18. Expenditure under the Other category primarily reflects the written-down value of assets sold under the Housing Sale Program. The decrease in 2004-05 is due to the reduction of that sales program.
Chapter 5: Health and Human Services 163 Table 5.15: Statement of Financial Performance for the Department of Health and Human Services 2003-04 2004-05 Budget Budget Variation $'000 $'000 % OPERATING REVENUE Revenue from Government Annual Appropriation1 757 867 811 594 7.0 Other2 14 837 6 176 (58.4) Investment Income3 3 289 9 464 187.7 Grants 14 869 15 354 3.2 Sales of Goods and Services4 90 555 99 494 9.9 Proceeds from the Disposal of Assets5 14 960 9 704 (35.2) Other Revenue6 23 084 18 280 (20.8) TOTAL 919 461 970 066 5.5
OPERATING EXPENSES Employee Entitlements7 447 102 491 766 9.9 Superannuation7 41 187 43 130 4.7 Depreciation and Amortisation 26 155 26 064 (0.4) Borrowing Costs 13 769 13 299 (3.5) Grants and Transfer Payments 132 314 127 636 (3.6) Supplies and Consumables 264 643 276 402 4.4 Other Expenses8 21 405 10 260 (52.1) TOTAL 946 575 988 557 4.4
NET OPERATING RESULT (27 114) (18 491) (31.9)
ADMINISTERED ITEMS
REVENUE Revenue from Government Annual Appropriation9 13 526 12 164 (10.1) Grants 77 767 80 656 3.7 Sales of Goods and Services 16 16 .... TOTAL 91 309 92 836 1.6
EXPENSES Grants and Subsidies Grants and Transfer Payments9 13 526 12 164 (10.1) Total Grants and Subsidies 13 526 12 164 (10.1) Transfer to the Consolidated Fund 77 783 80 672 3.7 TOTAL 91 309 92 836 1.6
164 Chapter 5: Health and Human Services Notes: 1. The increase in Annual Appropriation represents the provision of additional funding for the Secure Mental Health Unit implementation, maintaining services in Disability, Mental Health, Oral Health and child protection services, the 'Safe at Home' initiative, maintaining acute Hospital and Ambulance Services, Cardiology Services at the Launceston General Hospital and additional funding for salary and wages. 2. The decrease in Other Revenue from Government relates to reduced amounts being carried forward from 2003-04 under section 8A(2) of the Public Account Act 1986. 3. The increase in Investment Income is partly due to the inclusion of funds generated by the HOAP scheme that are in excess of administration costs and lending. The increase is also due to changed accounting practice in relation to borrowing activity. 4. The increase in Sales of Goods and Services is primarily due to additional revenue generated following the transfer of the West Coast Health Services to the Department and funding received from the Community Support Levy for Neighbourhood House program. The increase is also partially due to a reclassification of some income from the Other Revenue category. 5. The decrease in Proceeds from the Disposal of Assets is attributable to the reduction in the level of sales under the assets sales program. 6. The reduction in Other Revenue is due to some revenue now being reported under the Sales of Goods and Services. 7. The increases in Salaries and Wages, Other Employee Related Expenses and Superannuation reflect additional funding for salaries and increased staffing resources for the Secure Mental Health Unit, Disability Services, Mental Health Services, Oral Health, transfer of service delivery for West Coast Health Services and Cancer Screening, staffing resources for child protection and Child and Family Support Services, staff to maintain service levels to acute Hospital and Ambulance Services, Cardiology Services at the Launceston General Hospital, and costs associated with salary and wage indexation. 8. The decrease in Other Expenses is attributable to the reclassification of costs such as programmed and general maintenance of land and buildings, plant and equipment and furniture and fittings from this expenditure category. These expenses are now reported under the Supplies and Consumables category. 9. The decrease in funding and associated payment for the Aurora Energy Pty Ltd Community Service Activity for pensioner concessions reflects the revised estimated cost of providing winter electricity concessions to eligible beneficiaries.
Chapter 5: Health and Human Services 165 Table 5.16: Statement of Financial Position as at 30 June for the Department of Health and Human Services 2004 2005 Budget Budget Variation $'000 $'000 % CURRENT ASSETS Cash1 35 287 51 179 45.0 Receivables 10 316 11 062 7.2 Investments2 .... 18 231 .... Other3 15 795 5 894 (62.7) TOTAL 61 398 86 366 40.6
NON-CURRENT ASSETS Investments4 53 976 37 138 (31.2) Land and Buildings5 1 012 462 1 036 535 2.3 Plant and Equipment5 25 107 24 491 (2.5) Infrastructure5 .... 5 120 .... Other 281 .... (100.0) TOTAL 1 091 826 1 103 284 1.0
TOTAL ASSETS 1 153 224 1 189 650 3.1
CURRENT LIABILITIES Payables6 17 252 18 898 9.5 Interest Bearing Liabilities7 44 306 35 832 (19.2) Employee Entitlements8 53 732 57 382 6.7 Accrued Expenses9 35 489 25 617 (27.9) Other .... 907 .... TOTAL 150 779 138 636 (8.1)
NON-CURRENT LIABILITIES Interest Bearing Liabilities7 258 707 252 832 (2.3) Employee Entitlements 65 076 65 484 0.6 Other10 1 461 .... (100.0) TOTAL 325 244 318 316 (2.2)
TOTAL LIABILITIES 476 023 456 952 (4.1)
NET ASSETS 677 201 732 698 8.1
166 Chapter 5: Health and Human Services Table 5.16: Statement of Financial Position as at 30 June for the Department of Health and Human Services (continued) 2004 2005 Budget Budget Variation $'000 $'000 % ADMINISTERED ITEMS
CURRENT ASSETS Tax Assets11 .... 2 467 .... TOTAL .... 2 467 ....
NON-CURRENT ASSETS Plant and Equipment 408 .... (100.0) TOTAL 408 .... (100.0)
TOTAL ASSETS 408 2 467 504.6
CURRENT LIABILITIES Payables 2 505 2 741 9.4 TOTAL 2 505 2 741 9.4
NON-CURRENT LIABILITIES TOTAL ......
TOTAL LIABILITIES 2 505 2 741 9.4
NET ASSETS (2 097) (274) (87.0)
Notes: 1. The increase in Cash is largely due to an increase in the level of funding carried forward into 2004-05 in relation to the Housing Capital Program. 2. The increase in Investment Assets is attributable to previously Unmatured Principal Housing Purchase contracts falling due and the reclassification of Home Ownership and Assistance Program and Housing purchase contracts to this category. These assets were formerly reported under the Other category. 3. The decrease in Other Assets is attributable to the reclassification of Home Ownership Assistance Program and Housing purchase contracts to the Investments category. 4. The decrease in Investments is partly due to previously Unmatured Principal Housing Purchase contracts falling due and partly attributable to repayment of loans by HOAP borrowers. 5. Transactions relating to the Land and Buildings and Plant and Equipment categories have been classified under Infrastructure in 2004-05. 6. Payables are adjusted on an annual basis to reflect the Payables balance in the Department's most recent audited annual financial statements. 7. The level of Current and Non-Current Interest Bearing Liabilities is dependent on a number of factors including market conditions and Commonwealth loan repayment schedules. Accordingly, the level and mix of current and non-current liability varies from year to year. 8. Employee Entitlements have increased based on agreed or otherwise anticipated increases to salary award rates. 9. Accrued expenses have decreased primarily due to the reclassification of revenue received in advance from this category to the Other category. 10. The amount in 2003-04 related to the final instalment on the linear accelerator. This equipment is now fully paid for.
Chapter 5: Health and Human Services 167 11. Tax Assets represent the Department's GST refund due from the Australian Taxation Office at the end of the month. This is the first year that the Department has recognised this refund in the Budget. The amount, however, is consistent with actual refunds in previous years.
Table 5.17: Statement of Cash Flows for the Department of Health and Human Services 2003-04 2004-05 Budget Budget Variation $'000 $'000 % CASH FLOWS FROM OPERATING ACTIVITIES Receipts Revenue from Government Appropriation1 757 867 811 594 7.0 Interest Received2 3 289 9 464 187.7 Grants 14 869 15 354 3.2 Sales of Goods and Services 90 555 99 494 9.9 Other Receipts3 23 084 18 280 (20.8) Payments Employee Entitlements4 (439 912) (483 748) 9.9 Superannuation4 (40 821) (42 916) 5.1 Borrowing Costs (13 769) (13 299) (3.5) Grants and Transfer Payments (132 314) (127 636) (3.6) Supplies and Consumables (264 643) (276 402) 4.4 NET CASH FROM/(USED IN) OPERATING ACTIVITIES (1 795) 10 185 (667.5)
CASH FLOWS FROM INVESTING ACTIVITIES Sale of Fixed Assets5 14 960 9 704 (35.2) Purchase of Fixed Assets6 (42 555) (19 692) (53.8) NET CASH FROM/(USED IN) INVESTING ACTIVITIES (27 595) (9 988) (63.9)
CASH FLOWS FROM FINANCING ACTIVITIES Net Borrowings (5 065) (4 117) (18.8) NET CASH FROM/(USED IN) FINANCING ACTIVITIES (5 065) (4 117) (18.8)
Net Increase/(Decrease) In Cash Held (34 455) (3 920) (88.7)
Cash at the Beginning of Reporting Period 69 742 55 100 (21.0)
Cash at the End of Reporting Period 35 287 51 180 45.0
168 Chapter 5: Health and Human Services Table 5.17: Statement of Cash Flows for the Department of Health and Human Services (continued) 2003-04 2004-05 Budget Budget Variation $'000 $'000 % ADMINISTERED ITEMS
CASH FLOWS FROM OPERATING ACTIVITIES Receipts Revenue from Government Appropriation 13 526 12 164 (10.1) Grants 77 767 80 656 3.7 Sales of Goods and Services 16 16 .... GST Receipts 30 058 30 057 (0.1) Payments Grants and Transfer Payments (13 526) (12 164) (10.1) Transfers to the Consolidated Fund (77 783) (80 672) 3.7 GST Payments (30 058) (30 058) .... NET CASH FROM/(USED IN) OPERATING ACTIVITIES .... (1) ....
CASH FLOWS FROM INVESTING ACTIVITIES NET CASH FROM/(USED IN) INVESTING ACTIVITIES ......
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ......
Net Increase/(Decrease) In Cash Held .... (1) ....
Cash at the Beginning of Reporting Period ......
Cash at the End of Reporting Period .... (1) ....
Notes: 1. The increase in Annual Appropriation represents the provision of additional funding for the Secure Mental Health Unit implementation, maintaining services in Disability, Mental Health, Oral Health and child protection services, the 'Safe at Home' initiative, maintaining acute Hospital and Ambulance Services, Cardiology Services at the Launceston General Hospital and additional funding for salary and wages. 2. The increase in Investment Income is partly due to the inclusion of funds generated by the HOAP scheme that are in excess of administration costs and lending. This increase is also due to changed accounting practice in relation to borrowing activity. 3. The reduction in Other Receipts is due to some revenue now being reported under the Sales of Goods and Services. 4. The increase in Employee Entitlements is primarily due to additional funding for salary and wages, the Secure Mental Health Unit and maintenance of current service delivery levels. 5. The reduction in cashflow from the Sale of Fixed Assets reflects the reduction in the Housing Sales Program. 6. The reduction in Purchase of Fixed Assets reflects a more conservative approach in assessing actual payments in relation to the Department's capital program. Actual capital commitments entered into during the years are expected to be significantly higher than the budgeted payments.
Chapter 5: Health and Human Services 169 Table 5.18: Reconciliation of Operating Expenses to Consolidated Fund Appropriation 2003-04 2004-05 Budget Budget $'000 $'000
Total Operating Expenses 960 101 1 000 721
Adjustments for Non-Cash Items Depreciation (26 155) (26 064) Employee Entitlements (7 556) (8 232) Loss on Sale (5 945) .... Demolitions (500) (500) Cost of Assets Sold (14 960) (9 704) Supplies and Consumables ......
Adjustments for Cash Items not Expensed GST 30 058 30 058 Transfers to Consolidated Fund 77 783 80 672 Home Ownership Assistance Program 9 000 9 000 Loan Repayments 5 065 4 117
Purchase of Capital Items 41 880 19 692
Total Cash Cost of Outputs 1 068 771 1 099 760
Other Funding Sources (297 378) (276 002)
Total Consolidated Fund Appropriation 771 393 823 758
170 Chapter 5: Health and Human Services 6 HOUSE OF ASSEMBLY
AGENCY OUTLINE
The Office of the Clerk of the House of Assembly provides services through the provision of advisory, procedural, research and administrative support to the House of Assembly, its Committees, the Speaker of the House and Members generally.
STRATEGIC FOCUS
The Office of the Clerk of the House of Assembly will continue to ensure the:
• lawful operation of the House of Assembly and the fulfilment of statutory requirements;
• lawful operation of Committees of the House and Joint Committees; and
• promotion of the role of Parliament.
KEY STRATEGIES
In order to achieve or assist in the achievement of the above outcomes, the Office of the Clerk of the House of Assembly has implemented the following key strategies:
• the provision of the highest levels of advice and procedural research and administrative services for the effective functioning of the House, its Committees and Members;
• the maintenance of the highest level of professional competence and efficiency;
• by being a fair and responsible employer, maximising the potential of all its staff through effective human resource practices; and
• promoting public awareness of the purpose, functions and work of the House by encouraging and facilitating visits by the widest possible range of citizens.
2004-05 MAJOR INITIATIVES
As part of the above key strategies, the House of Assembly will be subject to the results of the Joint Select Committee-Working Arrangements of the Parliament, which was established by the Parliament to inquire into Parliamentary reform and which will continue its work in 2004-05. The further deliberations of this Committee may result in changes to Parliamentary performance and efficiency which could have either procedural or financial implications for the House of Assembly.
Chapter 6: House of Assembly 171 SUMMARY AGENCY 2004-05 BUDGET INFORMATION
Financial Summary
Table 6.1: Summary Financial Information for the House of Assembly 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 1 826) 1 834) 0.4) Reserved by Law 3 045) 3 166) 4.0) TOTAL 4 871) 5 000) 2.6)
OPERATING EXPENSES House of Assembly Support Services 1 802) 1 847) 2.5) Payments Administered by the House of Assembly 3 045) 3 166) 4.0) TOTAL 4 847) 5 013) 3.4)
NET OPERATING RESULT 24) (13) (154.2)
DETAILED OUTPUT GROUP 2004-05 BUDGET INFORMATION
The individual Outputs of the House of Assembly are provided under the following Output Groups:
Output Group 1 House of Assembly Support Services; and
Output Group 2 Payments Administered by the House of Assembly.
172 Chapter 6: House of Assembly Output Group 1: House of Assembly Support Services Description
The Outcomes of this Output Group are the effective and lawful operation of both the House and its Committees, the fulfilment of statutory requirements, and the promotion of the role of the Parliament. This Output Group is produced internally by the Office of the Clerk of the House through the provision of both written and oral advice, and the provision of a Committee Secretariat.
Table 6.2: Summary Financial Information - Output Group 1 2003-04) 2004-05) House of Assembly Support Services Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 1 826) 1 834) 0.4) TOTAL 1 826) 1 834) 0.4)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 931) 969) 4.1) Other Employee Related Expenses 111) 113) 1.8) Superannuation 113) 118) 4.4) Depreciation and Amortisation 18) 18) ....) Supplies and Consumables Communications 218) 218) ....) Information technology 56) 56) ....) Travel and transport 187) 187) ....) Advertising and promotion 15) 15) ....) Other Supplies and Consumables 153) 153) ....) TOTAL 1 802) 1 847) 2.5)
EXPENSE BY OUTPUT 1.1 House of Assembly Support Services 1 700) 1 743) 2.5) 1.2 Select Committee Support Services 7) 7) ....) 1.3 Investigatory Committee Support Services 95) 97) 2.1) TOTAL 1 802) 1 847) 2.5)
Chapter 6: House of Assembly 173 Output Group 2: Payments Administered by the House of Assembly Description
This Output Group relates to the payment of salaries and allowances as prescribed by the Parliamentary Salaries Superannuation and Allowances Act 1973. This Output Group is produced internally by the Office of the Clerk of the House.
Table 6.3: Summary Financial Information - Output Group 2 2003-04) 2004-05) Payments Administered by the House of Assembly Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Reserved by Law 3 045) 3 166) 4.0) TOTAL 3 045) 3 166) 4.0)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 2 803) 2 921) 4.2) Superannuation 67) 70) 4.5) Supplies and Consumables Communications 23) 23) ....) Travel and transport 140) 140) ....) Other Supplies and Consumables 12) 12) ....) TOTAL 3 045) 3 166) 4.0)
EXPENSE BY OUTPUT 2.1 Payments Administered by the House of Assembly 3 045) 3 166) 4.0) TOTAL 3 045) 3 166) 4.0)
174 Chapter 6: House of Assembly DETAILED BUDGET STATEMENTS
Table 6.4: Output Group Expense Summary for the House of Assembly 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) Output Group 1 - House of Assembly Support Services 1.1 House of Assembly Support Services 1 700) 1 743) 2.5) 1.2 Select Committee Support Services 7) 7) ....) 1.3 Investigatory Committee Support Services 95) 97) 2.1) 1 802) 1 847) 2.5) Output Group 2 - Payments Administered by the House of Assembly 2.1 Payments Administered by the House of Assembly 3 045) 3 166) 4.0) 3 045) 3 166) 4.0)
TOTAL AGENCY 4 847) 5 013) 3.4)
Table 6.5: Statement of Financial Performance for the House of Assembly 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 1 826) 1 834) 0.4) Reserved by Law 3 045) 3 166) 3.9) TOTAL 4 871) 5 000) 2.6)
OPERATING EXPENSES Employee Entitlements 3 845) 4 003) 4.1) Superannuation 180) 188) 4.4) Depreciation and Amortisation 18) 18) ....) Supplies and Consumables 804) 804) ....) TOTAL 4 847) 5 013) 3.4)
NET OPERATING RESULT 24) (13) (154.2)
Chapter 6: House of Assembly 175 Table 6.6: Statement of Financial Position as at 30 June for the House of Assembly 2004) 2005 Budget) Budget) Variation) $'000) $'000) %) CURRENT ASSETS Cash 5) 8) 60.0) Receivables 14) 25) 78.5) Prepayments ....) 4) ....) TOTAL 19) 37) 94.7)
NON-CURRENT ASSETS Plant and Equipment1 95) 1 010) 963.1) Other1 940) ....) (100.0) TOTAL 1 035) 1 010) (2.5)
TOTAL ASSETS 1 054) 1 047) (0.7)
CURRENT LIABILITIES Payables 91) 66) (27.5) Employee Entitlements2 405) 232) (42.8) Accrued Expenses 18) 6) (66.7) Other 4) 4) ....) TOTAL 518) 308) (40.6)
NON-CURRENT LIABILITIES Employee Entitlements2 34) 283) 732.3) TOTAL 34) 283) 732.3)
TOTAL LIABILITIES 552) 591) 7.0)
NET ASSETS 502) 456) (9.2)
Notes: 1. The increase in Plant and Equipment represents the reclassification of assets from Other to Plant and Equipment. 2. The change in Employee Entitlements represents a re-assessment of the apportionment of the liability between Current and Non-Current Liabilities.
176 Chapter 6: House of Assembly Table 6.7: Statement of Cash Flows for the House of Assembly 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) CASH FLOWS FROM OPERATING ACTIVITIES Receipts Revenue from Government Appropriation 1 826) 1 834) 0.4) Reserved By Law 3 045) 3 166) 3.9) Payments Employee Entitlements (3 862) (3 988) 3.2) Superannuation (185) (188) 1.6) Supplies and Consumables (804) (804) ....) NET CASH FROM/(USED IN) OPERATING ACTIVITIES 20) 20) ....)
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of Fixed Assets (20) (20) ....) NET CASH FROM/(USED IN) INVESTING ACTIVITIES (20) (20) ....)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held ....) ....) ....)
Cash at the Beginning of Reporting Period 5) 8) 60.0)
Cash at the End of Reporting Period 5) 8) 60.0)
Chapter 6: House of Assembly 177 Table 6.7: Statement of Cash Flows for the House of Assembly (continued) 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) ADMINISTERED ITEMS
CASH FLOWS FROM OPERATING ACTIVITIES Receipts GST Receipts 67) 67) ....) Payments GST Payments (67) (67) ....) NET CASH FROM/(USED IN) OPERATING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM INVESTING ACTIVITIES NET CASH FROM/(USED IN) INVESTING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held ....) ....) ....)
Cash at the Beginning of Reporting Period ....) ....) ....)
Cash at the End of Reporting Period ....) ....) ....)
178 Chapter 6: House of Assembly Table 6.8: Reconciliation of Operating Expenses to Consolidated Fund Appropriation 2003-04) 2004-05) Budget) Budget) $'000) $'000)
Total Operating Expenses 4 847 5 013
Adjustments for Non-Cash Items Depreciation (18) (18) Employee Entitlements 22 (15) Total Cash Cost of Outputs 4 851 4 980
Other Funding Sources Purchase of Capital Items 20) 20
Total Consolidated Fund Appropriation 4 871) 5 000
Chapter 6: House of Assembly 179
7 DEPARTMENT OF INFRASTRUCTURE, ENERGY AND RESOURCES
AGENCY OUTLINE
The Department of Infrastructure, Energy and Resources provides infrastructure for the social and economic development of Tasmania.
The Department's role is to support the existing commercial and social structure and to facilitate new development that will enable Tasmania to prosper. In pursuing this purpose, the Department aims to ensure the effective integration of the key infrastructure serving the community. This comprises the physical transport and energy assets (for example roads, bridges, ports and powerlines), the information systems capturing, maintaining and providing data (for example in transport, mining and forestry) and the policy environment and regulatory systems in which business is conducted. A collaborative approach by the Department is a critical dimension to achieving its purpose.
The delivery areas within the Department comprise:
• infrastructure policy, including energy and forestry policy;
• land transport safety;
• roads and public transport;
• workplace standards;
• minerals resources; and
• racing services.
On behalf of the Minister for Infrastructure, Energy and Resources and the Minister for Racing, the Department also provides independent strategic policy advice and support in relation to the Government's relationships with many Government Business Enterprises (GBEs), State-owned Companies (SOCs) and Statutory Authorities.
STRATEGIC FOCUS
The Department aims to deliver a strategic approach to the provision of both physical and regulatory infrastructure through its corporate plan. The corporate plan has been developed ensuring that all key Government outcomes are addressed including those outlined in Tasmania Together, Industry Development
Chapter 7: Infrastructure, Energy and Resources 181 Plans and Partnerships with Local Government. The strategic focus of the Department is on contributing to the achievement of the following Government outcomes:
• facilitation of a safe, accessible and equitable transport system that enhances economic development;
• promotion of reliable, efficient, safe and sustainable energy systems, and the promotion of energy efficiency and conservation;
• promotion of productive, safe workplaces where the rights of employees, employers, principals and the community are being met;
• facilitation of mineral exploration and land management for Tasmanian land and offshore waters; and
• maintenance of probity and integrity in the racing industry.
KEY STRATEGIES
The following key strategic objectives will be used to achieve the above outcomes of the Department of Infrastructure, Energy and Resources (DIER):
• maintain and develop the infrastructure frameworks to advance social and economic development;
• achieve stakeholder support for all our business activities;
• collaborate within DIER and across all tiers of Government;
• maintain and develop a committed and capable workforce; and
• achieve best value for money within Budget.
2004-05 MAJOR INITIATIVES
The aim of the Department is to support the economic development of the State and improve Tasmania's quality of life in accordance with the Government's major strategic policies of Tasmania Together, the Industry Development Plan and Partnership Agreements. In relation to Tasmania Together, given the Department's wide range of responsibilities, the services provided by the Department will contribute to the achievement of a number of Tasmania Together benchmarks and goals.
Listed in order of its primary Output Groupings, the Department will undertake the following major initiatives in 2004-05. Output Group 1: Development of Transport Policy Advice and Planning State Infrastructure Plan Undertake a Business Case for the development of a strategic mapping and analytical planning tool to support economic infrastructure activities. AusLink Continue work on preparing the State for the introduction of the Commonwealth Government's new land transport planning funding arrangements under AusLink.
182 Chapter 7: Infrastructure, Energy and Resources Southern Integrated Transport Plan Under the umbrella of the Partnership Agreement between the State Government and the Southern Tasmanian Councils, jointly prepare a southern economic and infrastructure development strategy and commence work on a southern integrated transport plan. Impact of Freight on State Roads Continue work on strategic analysis to inform policy and planning activities, including the Tasmanian freight task, in particular the recently completed freight demanders survey; road versus rail and the effect of the movement of freight tonnage between the modes; and the long-term effect of the growing freight task on transport infrastructure. Output Group 2: Land Transport Safety Programs Safety The major initiatives for safety in 2004-05 include:
• continue to implement a Tasmanian Safer Roads Program;
• undertake the ongoing development and implementation of quality based industry accreditation schemes for the road and rail freight and passenger transport industries;
• continue the program for reducing unregistered/uninsured vehicles; and
• introduce alternative delivery of heavy vehicle licence assessments. National Transport Reforms The major initiatives in relation to National Transport Reforms in 2004-05 are:
• vehicle standards and operational requirements for over-dimensional and over-weight vehicles, ensuring that high productivity vehicles move safely around our State;
• measures to reduce heavy vehicle driver fatigue;
• ongoing development and implementation of transport industry accreditation;
• effective road transport compliance and enforcement techniques and sanctions; and
• complete connection to the National Exchange of Vehicle and Driver Information System (NEVDIS). Output Group 3: Provision of Transport Services and Infrastructure Core Regular Passenger Transport Services Review The Government has provided funding for the Review of Core Regular Passenger Transport Services as outlined in the Passenger Transport (Transitional) Regulations 2000. Roads Information Management System Continued development of the Road Information Management System (RIMS), incorporating modules to facilitate traffic statistics, crash data management and bus route management, will be undertaken. Output Group 4: Provision of Energy Advisory and Regulatory Services Gas Further development of the regulatory and administrative framework for natural gas in Tasmania will be undertaken.
Chapter 7: Infrastructure, Energy and Resources 183 Energy Major Energy initiatives include:
• administer the Remote Renewable Power Generation Program in Tasmania; and
• develop models of potential future demand and supply for various forms of energy in Tasmania. Output Group 5: Workplace Standards Workplace Safety Major Workplace Safety initiatives include:
• enhance the safety and standards provisions of the Gas Act 2000, Gas Pipelines Act 2000, and Electricity Industry Safety and Administration Act 1997 by the formation of advisory groups and the formulation of strategic alliances, particularly in relation to the installation of the gas distribution network and the approval of appliances;
• update dangerous goods legislation including major hazard facilities and counter terrorism measures; and
• implement the Workers Rehabilitation and Compensation Act 1988 review recommendations. Building Act and Code Implement the Building Act 2000, involving the creation of a builder accreditation scheme, and mandatory liability insurance. Output Group 6: Mineral Resources Management and Administration Promotion Undertake a series of promotional activities to encourage mineral exploration in the State, including the promotion of the three-dimensional model of geological structure and major mineralising pathways of Tasmania. Geoscientific Data Continue the updating of data for the Tasmanian Information on Geoscience and Exploration Resources (TIGER) system. Mining Major Mining initiatives include:
• continue rehabilitation of abandoned mining sites in Tasmania; and
• undertake stage two of the core library extension. Output Group 7: Support for the Minister in Infrastructure Development and Government Business Management Forestry Progress the monitoring and strategic planning of issues associated with the Regional Forest Agreement, including the outcomes of the first five yearly review of implementation. New Developments Coordination and support of new industry developments.
184 Chapter 7: Infrastructure, Energy and Resources Output Group 8: Support for Racing Industry Racing Major Racing initiatives include:
• complete and implement new racing legislation; and
• provide advice to the Minister and implement outcomes of racing industry restructure proposals. Capital Investment Program Roads Program Major Roads Program projects include:
• continue development of the Bass Highway between Ulverstone and Burnie;
• continue improvements to the West Tamar Highway between Cormiston Creek and Legana;
• continue development and implement specific improvements associated with the North East Tasmania Access Study;
• commence improvements to the Huonville loop ramp at the Channel Highway, Kingston Interchange;
• continue planning for the replacement of the Bridgewater bridge at Granton;
• continue implementation of the plan for roads and bridges to extend the proportion of the network available to heavy vehicles operating at increased mass limits and high productivity vehicles;
• implement projects identified under the Tasmanian Safer Roads program; and
• commence improvements to the Glen Huon Road. Mineral Resources The Department undertook stage one of the core library fit out in 1999-2000, which involved construction of a new module and racking, and purchase of a fork lift truck. The existing store was then largely decommissioned due to the inefficient and unsafe nature of the storage.
Funding has been allocated to supply and fit out the original core library with racking for storage, and to purchase timber for pallet construction for storage. Economic and Social Infrastructure Fund
The Government established the Economic and Social Infrastructure Fund in 2003-04 which will be used to improve services to the community and address economic and social infrastructure needs. The Department has been allocated $18 million (over three years) from the Fund to address road and bridge maintenance issues and improve major tourist routes. Projects being funded in 2004-05 include:
• replacement of two bridges on the Hastings Cave Tourist Road and the bridge over Forsters Rivulet on the Lymington Main Road;
• replacement of the Maclaines Creek bridge at Triabunna;
• pavement strengthening, widening and improvements on the Esk Main Road;
• pavement strengthening on the Henty Main Road;
• pavement strengthening on the Bass Highway, west of Crayfish Creek;
Chapter 7: Infrastructure, Energy and Resources 185 • pavement strengthening on the East Tamar Highway between Charles Street and Main Street; and
• stage two of pavement strengthening works on Mud Walls Secondary Road. Social Infrastructure Fund
The Government established the Social Infrastructure Fund in 2002-03 to improve services to the community and address social infrastructure needs. The Department was allocated $1.5 million (over four years) from the Fund to address road safety issues. Projects being funded in 2004-05 include:
• development of community partnerships in road safety;
• continue review of speed zoning practices and the establishment of a speed management framework;
• continue development of a motorcycle safety strategy;
• national transport operator reforms; and
• complete connection to the National Exchange of Vehicle and Driver Information System (NEVDIS). Structural Performance and Initiatives Program
Funding has been provided within the Structural Performance and Initiatives Program to support the redevelopment of the Motor Registry System (MRS). This project will implement a MRS incorporating appropriate new business processes, new organisation models, new policies/practices/procedures and new applications systems for Tasmania taking into account existing and emergent opportunities in technology and electronic commerce. This will enable the MRS and the Government as a whole to better meet current and identified future business imperatives and deliver the requirements of State and National reforms. The redevelopment will directly benefit the Departments of Police and Public Safety, Justice and Treasury and Finance, and improve customer service delivery via Service Tasmania.
186 Chapter 7: Infrastructure, Energy and Resources SUMMARY AGENCY 2004-05 BUDGET INFORMATION
Financial Summary
Table 7.1: Summary Financial Information for the Department of Infrastructure, Energy and Resources 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 168 311) 185 823) 10.4) Reserved by Law 52) 52) ....) Other2 3 700) 2 000) (45.9) Other Revenue3 203 540) 179 065) (12.0) TOTAL 375 603) 366 940) (2.3)
OPERATING EXPENSES4 Development of Transport Policy Advice and Planning 2 006) 2 073) 3.3) Land Transport Safety Programs5 18 558) 18 490) (0.4) Provision of Transport Services and Infrastructure6 6 852) 7 495) 9.4) Provision of Energy Advisory and Regulatory Services 565) 575) 1.8) Workplace Standards 12 689) 13 082) 3.1) Mineral Resources Management and Administration 6 069) 6 163) 1.5) Support for the Minister in Infrastructure Development and Government Business Management 543) 551) 1.5) Support for Racing Industry7 1 871) 1 979) 5.8) Transport Subsidies and Concessions8 41 760) 43 058) 3.1) Grants and Subsidies 188 405) 189 369) 0.5) Other9 101 252) 115 007) 13.6) TOTAL 380 570) 397 842) 4.5)
NET OPERATING RESULT (4 967) (30 902) 522.1)
Notes: 1. The increase in Annual Appropriation is due to additional funding provided for the State Service Wages Agreement, funding provided for a review of Core Regular Passenger Transport Services, increased funding for Driver Licences and Registration Plates, increased funding for the Transport Access Scheme and Pensioner, Aged and Unemployment Concessions, funding provided for indexation increases for Transport Subsidies and Concessions and Grants and Subsidies, an increase in funding provided by the Commonwealth for the National Highway, funding provided for Stage 2 of the Mineral Resources Core Store extension and the requirement to pay Local Government charges. These additional funds have been offset by a reduction in funding provided in 2003-04 for the 27th pay and reductions in funding for Digitised Licensing, Novice Driver and Maintenance of Infrastructure Systems initiatives funded in previous financial years.
Chapter 7: Infrastructure, Energy and Resources 187 2. The reduction relates to monies to be carried forward from 2003-04 to 2004-05 for the National Highway. 3. The reduction in Other Revenue relates to allocations shown for the value of the estimated increase in the Minister's stakeholder ownership in the Burnie Ports Corporation Pty Ltd, the Hobart Ports Corporation Pty Ltd, the Port of Devonport Corporation Pty Ltd, the Port of Launceston Pty Ltd, Metro Tasmania Pty Ltd, Aurora Energy Pty Ltd, Transend Networks Pty Ltd and TOTE Tasmania Pty Ltd in 2003-04 being transferred to Finance-General. 4. Major reasons for variations between allocations of the Output Groups are as listed below however all Output Groups are affected slightly by reviews of costing arrangements that changed the spread of costs across Outputs within Output Groups and between Output Groups and by the reversal of amounts accrued over previous years to fund the 27th pay in 2003-04. 5. The minor decrease in Land Transport Safety Programs relates mainly to increased funding provided for the State Service Wages Agreement and increased funding for Driver Licences and Registration Plates offset by a reduction for funding provided in 2003-04 for the 27th pay and reductions in funding for Digitised Licensing and Novice Driver initiatives funded in previous financial years. 6. The increased funding for Provision of Transport Services and Infrastructure relates mainly to increased funding provided for the State Service Wages Agreement and funding provided for a Review of Core Regular Passenger Transport Services offset by a reduction for funding provided in 2003-04 for the 27th pay. 7. The increased funding for Support for Racing Industry relates mainly to increased funding provided for the State Service Wages Agreement and increased rental liability offset by a reduction for funding provided in 2003-04 for the 27th pay. 8. The increased funding for Transport Subsidies and Concessions relates to increased funding provided for the indexation of payments for the Bruny Island Ferry Service, the CSO payment to Metro Tasmania Pty Ltd, Payments to School Bus Operators - Contract Services and Urban Bus Services. 9. The increase in Other relates mainly to an increased allocation from the Commonwealth for the National Highway and an increase in the provision for depreciation of the road network.
DETAILED OUTPUT GROUP 2004-05 BUDGET INFORMATION
The individual Outputs of the Department of Infrastructure, Energy and Resources are provided under the following Output Groups:
Output Group 1 Development of Transport Policy Advice and Planning;
Output Group 2 Land Transport Safety Programs;
Output Group 3 Provision of Transport Services and Infrastructure;
Output Group 4 Provision of Energy Advisory and Regulatory Services;
Output Group 5 Workplace Standards;
Output Group 6 Mineral Resources Management and Administration;
Output Group 7 Support for the Minister in Infrastructure Development and Government Business Management;
Output Group 8 Support for Racing Industry; and
Output Group 9 Transport Subsidies and Concessions.
188 Chapter 7: Infrastructure, Energy and Resources Output Group 1: Development of Transport Policy Advice and Planning Description
This Output Group supports the broader strategic transport policy objectives of the Government.
The focus of this Output Group is:
• the ongoing planning, development and review of passenger and freight transport system policies; and
• the development of transport strategies to enhance the economic development of the State in a sustainable manner.
Policy advice and support is also supplied to the Minister for Infrastructure, Energy and Resources to ensure that Government requirements and expectations are met in relation to Government Business Enterprises, State-owned Companies and Statutory Authorities for which the Minister for Infrastructure, Energy and Resources is a joint stakeholder. The entities are the Motor Accidents Insurance Board, the Burnie Ports Corporation Pty Ltd, the Hobart Ports Corporation Pty Ltd, the Port of Devonport Corporation Pty Ltd, the Port of Launceston Pty Ltd, Metro Tasmania Pty Ltd and Marine and Safety Tasmania.
Departmental staff primarily provide Outputs within this Output Group with assistance from external consultants as required. There is also close liaison with other departments, Local Government, relevant industry bodies and community groups.
This Output Group contributes to a safe, accessible and equitable transport system that enhances economic development.
Chapter 7: Infrastructure, Energy and Resources 189 Table 7.2: Summary Financial Information - Output Group 1 2003-04) 2004-05) Development of Transport Policy Advice and Planning Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 2 029) 2 040) 0.5) Other Revenue 5) 5) ....) TOTAL 2 034) 2 045) 0.5)
OPERATING EXPENSES Employee Entitlements Salaries and Wages2 1 472) 1 545) 5.0) Other Employee Related Expenses2 112) 117) 4.5) Superannuation2 172) 179) 4.1) Depreciation and Amortisation 36) 36) ....) Supplies and Consumables Consultants 17) 15) (11.8) Maintenance and Property Services 39) 39) ....) Communications2 29) 27) (6.9) Information Technology2 34) 26) (23.5) Travel and Transport 73) 73) ....) Advertising and Promotion2 8) 6) (25.0) Other Supplies and Consumables2 14) 10) (28.6) TOTAL 2 006) 2 073) 3.3)
EXPENSE BY OUTPUT 1.1 Passenger Transport Policy Advice and Planning 786) 808) 2.8) 1.2 Freight Transport Policy Advice and Planning 589) 617) 4.8) 1.3 Transport System Policy Advice and Planning 631) 648) 2.7) TOTAL 2 006) 2 073) 3.3)
Notes: 1. The increase in Annual Appropriation is mainly due to increased funding provided for the State Service Wages Agreement. These additional funds have been offset by a reduction for funding provided in 2003-04 for the 27th pay, a decrease in funding provided for the Maintenance of Infrastructure Systems funded in previous financial years and a transfer of funding for increased costs of rental to Output Group 8 - Support for Racing Industry. 2. The variations between years in these Expense items mainly represent a change of mix within the expenditure profile of this Output Group, a decrease in funding provided for the Maintenance of Infrastructure Systems funded in previous financial years and a transfer of funding for increased costs of rental to Output Group 8 - Support for Racing Industry.
190 Chapter 7: Infrastructure, Energy and Resources Major Issues and Initiatives for 2004-05
Major issues and initiatives for 2004-05 are:
• undertake a Business Case for the development of a strategic mapping and analytical planning tool to support economic infrastructure activities;
• continue work on preparing the State for the introduction of the Commonwealth Government's new land transport planning funding arrangements under AusLink;
• under the umbrella of the Partnership Agreement between the State Government and the Southern Tasmanian Councils, prepare a joint southern economic and infrastructure development strategy and commence work on a southern integrated transport plan;
• develop the framework and directions for a Tasmanian transport plan;
• continue work on strategic analysis to inform policy and planning activities, including the Tasmanian freight task, in particular the recently completed freight demanders survey; road versus rail and the effect of the movement of freight tonnage between the modes; and the long term effect of the growing freight task on transport infrastructure;
• assistance to the Tasmanian Freight Logistics Council on meeting the transport needs of Tasmanian exporters and other shippers;
• under the umbrella of the Partnership Agreement between the State Government and the George Town Council, jointly review and update information and strategies covering planning outcomes, development plans and marketing arrangement for the Bell Bay industrial area;
• provision of a consistent approach in meeting DIER's responsibilities in the development of policy and legislation related to transport activities;
• continue to develop strategies for the implementation and take up of Wheelchair Accessible Taxis in Tasmania, as required under the Disability Discrimination Act 1992 (Cwlth);
• continue to implement the introduction of security cameras into taxis; and
• continue to make available new perpetual taxi licences in all non-metropolitan taxi areas within the requirements of National Competition Policy.
Chapter 7: Infrastructure, Energy and Resources 191 Table 7.3: Performance Information - Output Group 1 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure Measure Actual Actual Target Target
Ministerial Correspondence completed within determined timeframes % 75 80 80 80 User Satisfaction Survey1 Scale of Five n.a. 3.7 >4 >4 Management of Policy Projects Satisfaction n.a. Satisfied Satisfy Satisfy Providing effective support to Government by enabling informed decision making through the provision of advice Satisfaction n.a. Satisfied Satisfy Satisfy Development of principal and subordinate legislation to support policy framework Completed n.a. Achieved Achieve Achieve
Note: 1. The User Satisfaction Survey seeks stakeholder feedback in respect of the level of satisfaction perceived on such issues as quality, equity, efficiency and openness of the consultation process. A rating scale of one to five is used, with five representing the greatest degree of importance or the greatest degree of satisfaction with performance. A User Satisfaction Survey for 2003-04 is in progress.
Output Group 2: Land Transport Safety Programs Description
This Output Group facilitates the safe, efficient and equitable movement of all traffic within the Tasmanian land transport system, including heavy and light vehicles, motorcycles, cyclists, pedestrians and rail.
The focus of this Output Group is:
• the provision of a traffic management framework for the State;
• road safety education, research, promotion and advice through policy development, community programs, school-based education programs, consultative forums and advertising;
• management of driver licensing and vehicle registration; and
• management and enforcement of safety standards for rail operations, heavy vehicles and public vehicles.
The main users of this Output Group are registered operators of vehicles and licensed drivers, Local Government, school and community groups, rail operators and owners, transport operators and other road users of the land transport system.
The Outputs are primarily provided by Departmental staff with external providers being used as required. For example, a network of Approved Inspection Stations around the State performs light vehicle checks, an independent contractor carries out motorcycle rider training and testing, and Service Tasmania provides the majority of registration and licensing services.
This Output Group contributes to a safe, accessible and equitable transport system that enhances economic development.
192 Chapter 7: Infrastructure, Energy and Resources Table 7.4: Summary Financial Information - Output Group 2 2003-04) 2004-05) Land Transport Safety Programs Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 18 271) 17 833) (2.4) Grants 569) 569) ....) Sales of Goods and Services 218) 218) ....) Proceeds from the Disposal of Assets 3) 3) ....) Other Revenue 57) 57) ....) TOTAL 19 118) 18 680) (2.3)
OPERATING EXPENSES1,2 Employee Entitlements Salaries and Wages 9 901) 10 028) 1.3) Other Employee Related Expenses 821) 820) (0.1) Superannuation 1 135) 1 128) (0.6) Depreciation and Amortisation 282) 282) ....) Supplies and Consumables Consultants 155) 155) ....) Maintenance and Property Services 958) 959) 0.1) Communications 789) 735) (6.8) Information Technology 1 896) 1 792) (5.5) Travel and Transport 426) 414) (2.8) Advertising and Promotion 585) 565) (3.4) Other Supplies and Consumables 1 610) 1 612) 0.1) TOTAL 18 558) 18 490) (0.4)
EXPENSE BY OUTPUT 2.1 Traffic Management Standards 1 149) 1 173) 2.1) 2.2 Road Safety Research, Education, Promotion and Advice 2 328) 2 379) 2.2) 2.3 Driver Licensing3 7 221) 6 840) (5.3) 2.4 Vehicle Registration 4 313) 4 439) 2.9) 2.5 Vehicle Standards and Compliance 3 547) 3 659) 3.2) TOTAL 18 558) 18 490) (0.4)
Notes: 1. The decrease in Annual Appropriation is mainly due to a reduction in funding provided in 2003-04 for the 27th pay and reductions in funding for Digitised Licensing and Novice Driver initiatives funded in previous financial years. Increased funding provided for in the State Service Wages Agreement, increased funding for Driver Licences and Registration Plates partially offset this reduction. 2. The variations between these Expense items mainly represent a change of mix within the expenditure profile of this Output Group and a reduction to transfer funds for increased costs of rental to Output Group 8 - Support for Racing Industry. 3. The reduction in Output 2.3 - Driver Licensing is mainly due to increased funding provided for the State Service Wages Agreement offset by a reduction for funding provided in 2003-04 for the 27th pay and reductions in funding for Digitised Licensing and Novice Driver initiatives funded in previous financial years.
Chapter 7: Infrastructure, Energy and Resources 193
Major Issues and Initiatives for 2004-05
Major issues and initiatives for 2004-05 are to:
• continue to implement a Tasmanian Safer Roads program;
• undertake the ongoing development and implementation of quality based industry accreditation schemes for the road and rail freight and passenger transport industries;
• continue the program for reducing unregistered/uninsured vehicles; and
• introduce alternative delivery of heavy vehicle licence assessments.
In addition to the above initiatives funded through the Department, there are further initiatives funded through the Social Infrastructure Fund and Structural Performance and Initiative Program, including:
• development of community partnerships in road safety;
• continue review of speed zoning practices and the establishment of a speed management framework;
• continue development of a motorcycle safety strategy;
• continue national transport operator reforms; and
• redevelopment of the Motor Registry System.
A major focus of this Output Group over the next 12 months continues to be implementation of national transport reforms. The implementation of these reforms will improve the safety and efficiency of the Tasmanian transport sector through national consistency in:
• vehicle standards and operational requirements for over-dimensional and over-weight vehicles, ensuring that high productivity vehicles move safely around our State;
• measures to reduce heavy vehicle driver fatigue;
• ongoing development and implementation of transport industry accreditation;
• effective road transport compliance and enforcement techniques and sanctions; and
• complete connection to the National Exchange of Vehicle and Driver Information System (NEVDIS).
194 Chapter 7: Infrastructure, Energy and Resources Table 7.5: Performance Information - Output Group 2 Unit of 2000-01 2001-02 2002-03 2003-04 2004-05 Performance Measure1 measure Actual Actual Actual Target Target
VEHICLE OPERATIONS Percentage of Vehicles checked found to be unregistered2 % 1.551.33 0.83 0.70 0.50 Percentage of Vehicles checked found to be overweight2,3 % 4.743.04 3.67 6.50 7.00
CRASH DATA4 Serious Casualty Crashes per 100 million vehicle kilometres5 Number 9.608.50 8.30 8.00 7.80 Road Fatalities per 100 million vehicle kilometres Number 1.37 0.74 0.70 0.66 0.62 Persons hospitalised per 100 million vehicle kilometres Number 10.609.50 9.00 8.60 8.30 Social Cost of serious casualty crashes per 100 million vehicle kilometres5 $ million 4.574.40 4.30 4.20 4.10
CRASH DATA [Rolling Five Year Average]6 Number of fatalities from road crashes Number 47.4 48.4 47.0 46.5 46.0 Number of serious injuries from road crashes Number 474.8 474.2 463.2 460.0 455.0 Number of fatalities in the 0 to 29 years age group (TT)7 Number 22.021.6 20.0 19.0 18.5 Number of serious injuries in the 0 to 29 years age group (TT)7 Number 246.2238.8 228.2 220.0 215.0
Notes: 1. Other government departments influence performance information in this Table and results are not solely influenced by tasks undertaken within Output Group 2. 2. As checked by Transport Inspectors. 3. Increase due to targeted instead of random weighings of Heavy Vehicles and introduction of a new system. 4. Performance Information for Crash Data is presented on a calendar basis as supplied by AustRoads. The Performance Information presented for 2003 onwards are estimated results. All data, including previously reported data, is updated annually and is influenced by factors such as updated raw data (incomplete from previous years), motor vehicle usage data and social cost data. 5. Serious casualty crashes are defined as those in which at least one person has been killed or hospitalised. 6. Performance information for Crash Data is presented on a calendar basis and is extracted from the Traffic Accident Database which is maintained by the Department of Infrastructure, Energy and Resources. 7. This target is directly related to the Tasmania Together Goal 2, Benchmark 2.2.1 to reduce the number of deaths of people aged 0 to 29 years due to external causes.
Chapter 7: Infrastructure, Energy and Resources 195 Output Group 3: Provision of Transport Services and Infrastructure Description
This Output Group optimises access to transport services for both industry and the Tasmanian community.
The focus of this Output Group is:
• the safe and efficient movement of transport system users by providing services such as the operation and maintenance of traffic signals and the provision of specialist advice to road authorities on traffic issues;
• to contract for the provision of essential public transport services including metropolitan, rural and regional regular passenger transport services, school buses and the Bruny Island Ferry Service;
• the administration of student transport assistance and subsidies to clients including the unemployed, pensioners and people with disabilities; and
• the management and development of the Road Information Management System (RIMS), which enables analysis of Tasmania's transport infrastructure and related logistics to facilitate better corporate decision-making.
The major users of these services are transport and community stakeholders in general. Key users include the State's residents, tourists and users of shipping and ferry services, students, schools and transport users with special needs.
Contractors within the private sector deliver the majority of services within this Output Group. Officers of the Department administer these contracts.
This Output Group contributes to a safe, accessible and equitable transport system that enhances economic development.
196 Chapter 7: Infrastructure, Energy and Resources Table 7.6: Summary Financial Information - Output Group 3 2003-04) 2004-05) Provision of Transport Services and Infrastructure Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 6 429) 6 928) 7.8) Sales of Goods and Services 145) 145) ....) Proceeds from the Disposal of Assets 1) 1) ....) Other Revenue2 3 651) 13) (99.6) TOTAL 10 226) 7 087) (30.7)
OPERATING EXPENSES3 Employee Entitlements Salaries and Wages 3 856) 4 266) 10.6) Other Employee Related Expenses 259) 295) 13.9) Superannuation3 476) 529) 11.1) Depreciation and Amortisation 1 031) 1 031) ....) Supplies and Consumables Consultants 38) 38) ....) Maintenance and Property Services 350) 386) 10.3) Communications 101) 113) 11.9) Information Technology 191) 236) 23.6) Travel and Transport 221) 256) 15.8) Advertising and Promotion 29) 39) 34.5) Other Supplies and Consumables 300) 306) 2.0) TOTAL 6 852) 7 495) 9.4)
EXPENSE BY OUTPUT 3.1 Traffic Signal Maintenance 4 637) 4 758) 2.6) 3.2 Island Shipping 27) 27) ....) 3.3 Provision and Management of Public Passenger Transport1 2 188) 2 710) 23.9) TOTAL 6 852) 7 495) 9.4)
Notes: 1. The increase in Annual Appropriation is mainly due to increased funding provided for the State Service Wages Agreement and a Review of Core Regular Passenger Transport Services. These additional funds have been partially offset by a reduction for funding provided in 2003-04 for the 27th pay. 2. The reduction in Other Revenue relates mainly to allocations shown for the value of the estimated increase in the Minister's stakeholder ownership in the Burnie Ports Corporation Pty Ltd, the Hobart Ports Corporation Pty Ltd, the Port of Devonport Corporation Pty Ltd, the Port of Launceston Pty Ltd and Metro Tasmania Pty Ltd being transferred to Finance-General. 3. The increase in Operating Expenses is mainly due to increased funding provided for the State Service Wages Agreement and a Review of Core Regular Passenger Transport Services. These additional funds have been offset by a reduction for funding provided in 2003-04 for the 27th pay and a reduction to transfer funds for increased costs of rental to Output Group 8 - Support for Racing Industry.
Chapter 7: Infrastructure, Energy and Resources 197 Major Issues and Initiatives for 2004-05
Major issues and initiatives for 2004-05 are:
• the Government has provided funding for the Review of Core Regular Passenger Transport Services as outlined in the Passenger Transport (Transitional) Regulations 2000; and
• continued development of the Road Information Management System, incorporating modules to facilitate traffic statistics, crash data management and bus route management.
Table 7.7: Performance Information - Output Group 3 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Traffic Signals – Statewide First response time to fault notification % 95 99 95 95 Level of user satisfaction of the Road Information Management System (RIMS) derived from annual survey1 % 93 80>80 >80 The cost of administering the delivery of the Government's passenger transport assistance programs2 % 2.612.37 2.30 2.30
Notes: 1. The RIMS survey is conducted at the end of each financial year. 2. The July 2003 to March 2004 figure is 2.32 per cent
Output Group 4: Provision of Energy Advisory and Regulatory Services Description
This Output Group covers the services provided by the Office of Energy Planning and Conservation.
The focus of this Output Group is:
• high level policy advice to the Government on energy related matters; and
• support for the ongoing development of an effective, forward looking regulatory framework for Tasmania's electricity and natural gas supplies and suppliers, as well as safe and efficient energy consumption.
The major users of policy advice provided on energy issues, as described in the Energy Co-ordination and Planning Act 1995, are the Minister for Infrastructure, Energy and Resources and the Government more generally. The major stakeholders for regulatory development, are the participants in the Tasmanian energy supply industry and the domestic, commercial and industrial consumers of energy.
The Output is provided by staff in consultation with members of the gas industry, the State's electricity businesses (Hydro Tasmania, Aurora Energy Pty Ltd and Transend Networks Pty Ltd) and other private
198 Chapter 7: Infrastructure, Energy and Resources energy supply companies. It also involves interaction with community groups, universities, other agencies and governments.
This Output Group contributes to the Department's outcomes of a reliable, efficient, safe and sustainable energy system, and the promotion of energy efficiency and conservation.
Table 7.8: Summary Financial Information - Output Group 4 2003-04) 2004-05) Provision of Energy Advisory and Regulatory Services Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 573) 572) (0.2) Other Revenue2 20 526) 1) (100.0) TOTAL 21 099) 573) (97.3)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 292) 303) 3.8) Other Employee Related Expenses 31) 32) 3.2) Superannuation 34) 36) 5.9) Supplies and Consumables Consultants 51) 51) ....) Maintenance and property services 6) 6) ....) Communications 7) 7) ....) Information technology 3) 3) ....) Travel and transport 17) 17) ....) Advertising and promotion 1) 1) ....) Other Supplies and Consumables3 123) 119) (3.3) TOTAL 565) 575) 1.8)
EXPENSE BY OUTPUT 4.1 Energy Policy and Advice 565) 575) 1.8) TOTAL 565) 575) 1.8)
Notes: 1. The decrease in Annual Appropriation is mainly due to increased funding provided for the State Service Wages Agreement offset by a reduction for funding provided in 2003-04 for the 27th pay and a reduction to transfer funds for increased costs of rental to Output Group 8 - Support for Racing Industry. 2. The reduction in Other Revenue relates mainly to allocations shown for the value of the estimated increase in the Minister's stakeholder ownership in Aurora Energy Pty Ltd and Transend Networks Pty Ltd being transferred to Finance-General. 3. The decrease in Other Supplies and Consumables is mainly due to a reduction to transfer funds for increased costs of rental to Output Group 8 - Support for Racing Industry.
Chapter 7: Infrastructure, Energy and Resources 199 Major Issues and Initiatives for 2004-05
The major issue and initiatives for 2004-05 are:
• support working groups of the Ministerial Council on Energy (MCE), notably the Energy Markets Reform program;
• lead the project to increase user participation as part of National Energy Market Reforms;
• administer the Remote Renewable Power Generation Program in Tasmania;
• develop models of potential future demand and supply for various forms of energy in Tasmania; and
• further develop the regulatory and administrative framework for natural gas in Tasmania.
Table: 7.9: Performance Information - Output Group 4 Unit of 2000-01 2001-02 2002-03 2003-04 2004-05 Performance Measure Measure Actual Actual Actual Target Target
Ministerial correspondence completed within determined timeframes % 75 75 80 80 80 User Satisfaction Surveys1 Scale of Five n.a. n.a. 3.7 >4 >4 Minister and Minister's Office DIER Management MCE task forces Other agencies Management of Policy Projects Satisfaction n.a. n.a. Satisfied Satisfy Satisfy Providing effective support to the Government by enabling informed decision making through the provision of advice Satisfaction n.a.n.a. Satisfied Satisfy Satisfy Development of principal and subordinate legislation to support policy framework Completed n.a. n.a. Achieved Achieve Achieve
Note: 1. The User Satisfaction Survey seeks stakeholder feedback in respect of the level of satisfaction perceived on such issues as quality, equity, efficiency and openness of the consultation process. A rating scale of one to five is used, with five representing the greatest degree of importance or the greatest degree of satisfaction with performance. A User Satisfaction Survey for 2003-04 is in progress.
200 Chapter 7: Infrastructure, Energy and Resources Output Group 5: Workplace Standards Description
This Output Group facilitates the promotion of productive, safe workplaces where the rights of employees, employers, principals and the community are met.
The focus of this Output Group is:
• improving health and safety at work;
• improving the safety with which dangerous goods are transported, handled and stored;
• effectively administering gas and electricity safety legislation;
• effectively administering Tasmania's workers' compensation scheme;
• improving the level of compliance with awards under the Commonwealth's Workplace Relations Act 1996, awards and agreements of the Tasmanian Industrial Commission and long service leave legislation;
• effectively administering the legislation governing the building and plumbing industry and trading;
• the review and development of legislation, standards, codes of practice, licensing, registration and accreditation procedures to ensure that appropriate workplace standards apply; and
• the provision of strategic policy advice to the Minister for Infrastructure, Energy and Resources, the Government, the WorkCover Tasmania Board and, where required, to the Commonwealth Minister for Workplace Relations and Small Business.
Users of this Output Group include the Minister for Infrastructure, Energy and Resources, the Government, Local Government, employers, employees, unions, employer organisations and the public.
Workplace Standards Tasmania provides workers' rehabilitation and compensation policy advice to the Government. The legislation establishes the WorkCover Tasmania Board which oversees the Tasmanian scheme. This includes promotion of the prevention of workplace injuries and disease. The Board also monitors, reviews and reports on the performance of scheme participants and Workplace Standards Tasmania's discharge of its workplace health and safety responsibilities. Workplace Standards Tasmania provides administrative support to the Board.
Chapter 7: Infrastructure, Energy and Resources 201 Table 7.10: Summary Financial Information - Output Group 5 2003-04) 2004-05) Workplace Standards Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 9 514) 9 639) 1.3) Fines and Regulatory Fees 10) 10) ....) Investment Income 40) 40) ....) Grants 3 271) 3 271) ....) Proceeds from the Disposal of Assets 1) 1) ....) Other Revenue 47) 47) ....) TOTAL 12 883) 13 008) 1.0)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 6 883) 7 242) 5.2) Other Employee Related Expenses 600) 618) 3.0) Superannuation 764) 789) 3.3) Depreciation and Amortisation 129) 129) ....) Grants and Transfer Payments 800) 800) ....) Supplies and Consumables Consultants 40) 41) 2.5) Maintenance and Property Services 943) 943) ....) Communications 343) 343) ....) Information Technology 367) 367) ....) Travel and Transport 526) 526) ....) Advertising and Promotion 724) 724) ....) Other Supplies and Consumables2 570) 560) (1.8) TOTAL 12 689) 13 082) 3.1)
EXPENSE BY OUTPUT 5.1 Safety Standards and Compliance 6 575) 6 797) 3.4) 5.2 Employer and Employee Services 4 519) 4 633) 2.5) 5.3 Workplace Standards and Advice 1 044) 1 087) 4.1) 5.4 Electricity Industry Regulation 551) 565) 2.5) TOTAL 12 689) 13 082) 3.1)
Notes: 1. The increase in Annual Appropriation is mainly due to increased funding provided for the State Service Wages Agreement partially offset by a reduction for funding provided in 2003-04 for the 27th pay and a reduction to transfer funds for increased costs of rental to Output Group 8 - Support for Racing Industry. 2. The decrease in Other Supplies and Consumables is mainly due to a reduction to transfer funds for increased costs of rental to Output Group 8 - Support for Racing Industry.
202 Chapter 7: Infrastructure, Energy and Resources Major Issues and Initiatives for 2004-05
Major issues and initiatives for 2004-05 are to:
• enhance the safety and standards provisions of the Gas Act 2000, Gas Pipelines Act 2000, and Electricity Industry Safety and Administration Act 1997 by the formation of advisory groups and the formulation of strategic alliances, particularly in relation to the installation of the gas distribution network and the approval of appliances;
• introduce infringement notices (on the spot fines) similar to those under public health, environmental and fisheries legislation, correct anomalies in the Workplace Health and Safety Act 1995, and the Dangerous Goods Act 1998;
• introduce approved Codes of Practice under the Workplace Health and Safety Act 1995 including, but not limited, to public events, sawmill safety, and construction;
• update dangerous goods legislation including major hazard facilities and counter-terrorism measures;
• harmonise the electrical, gas, and plumbing occupational licensing systems;
• continue to work towards meeting national priorities as defined in the 'National Occupational Health and Safety Strategy 2002-2012';
• implement the Workers Rehabilitation and Compensation Act 1988 review recommendations;
• develop a response to the Productivity Commission's 'National Workers Compensation and Occupational Health and Safety Frameworks' final report; and
• implement the Building Act 2000, involving the creation of a builder accreditation scheme, and mandatory liability insurance.
Table 7.11: Performance Information - Output Group 5 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure Measure Actual Actual Target Target
All Claims Frequency Rate – All Industries1 Number 38.0 37.2 35.2 33.1 Helpline calls answered within two minutes2 % 83.6 88.8 85.0 85.0 Industrial claims resolution index3 % 73.4 85.2 90.0 90.0 Defects notices issued for inspections of electrical work4 % 10.5 10.9 10.0 10.0
Notes: 1. The All Claims Frequency Rate is a measure of the frequency of occurrence of all workplace injuries and illnesses relative to the amount of time workers are exposed to risk. It is derived by dividing the number of workers' compensation claims lodged over a particular period by the number of hours worked by employees exposed to risk during the same period, multiplied by one million. 2. Workplace Standards Tasmania provides telephone information to employers, employees, unions, employer organisations and others on occupational health and safety issues, workers' rehabilitation and compensation, industrial awards/agreements, long service leave, certain business regulation and the safe handling of dangerous goods. The majority of calls are concerning State and Commonwealth industrial relations. The level currently achieved meets the national industrial relations benchmark of 75 per cent of phone calls to be responded to within two minutes. 3. This index is a measure of the number of claims for outstanding worker's entitlements, as determined in accordance with the Industrial Relations Act 1984, resolved within three months of claim initiation relative to the total number of
Chapter 7: Infrastructure, Energy and Resources 203 claims received within the same three month period, expressed as a percentage. The increased percentage to 31 March 2003 is a reflection of the complexity of claims, and increased efficiency in resolution outcomes within the Inspectorate. 4. Electrical Contractors are required to submit an Electrical Installation Notice for all work performed. Inspections are carried out on a sample of work and defect notices issued for faulty installations.
Output Group 6: Mineral Resources Management and Administration Description
This Output Group provides services to the mineral exploration, mining, quarrying and mineral processing industries and for infrastructure development, as well as to land management groups for geohazards, construction materials and groundwater.
The focus of this Output Group is the:
• collection, integration, interpretation, publication and presentation of geoscientific information;
• collection, integration, interpretation, publication and presentation of information on Tasmania's land stability and groundwater issues for infrastructure planning and land management purposes;
• regulation of mineral and petroleum exploration in Tasmania, including offshore waters administered by the State, and the promotion of vacant areas available for onshore and offshore exploration;
• setting and monitoring of standards for both the performance of exploration activities and the technical reporting of exploration records and case histories;
• environmental appraisal, monitoring and management of mining heritage and land access issues;
• issue of legal titles for mining tenements, collation and recording of statistics relating to mining production, collection of fees and rentals, management of royalty regimes, and recording of mining tenements;
• provision of funding to support the Centre for Ore Deposit - Special Research Centre (CODES-SRC) at the University of Tasmania in conjunction with the Commonwealth Government and industry; and
• contribution towards the rehabilitation of abandoned mining land.
The Output Group's primary role is to ensure that the State's natural resources are managed in a sustainable way now and for future generations in accordance with the goals of Tasmania Together and to ensure that there is a fair and sustainable return to the community when mineral or petroleum resources are developed.
This Output Group contributes to the Department's outcome of facilitation of mineral exploration and land management for Tasmanian land and offshore waters.
204 Chapter 7: Infrastructure, Energy and Resources Table 7.12: Summary Financial Information - Output Group 6 2003-04) 2004-05) Mineral Resources Management and Administration Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 5 844) 5 835) (0.2) Grants 80) 80) ....) Other Revenue 126) 126) ....) TOTAL 6 050) 6 041) (0.1)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 2 740) 2 820) 2.9) Other Employee Related Expenses 232) 234) 0.9) Superannuation 307) 314) 2.3) Depreciation and Amortisation 254) 254) ....) Grants and Transfer Payments 418) 418) ....) Supplies and Consumables Consultants 75) 75) ....) Maintenance and Property Services 680) 692) 1.8) Communications 56) 56) ....) Information Technology 476) 476) ....) Travel and Transport 202) 202) ....) Advertising and Promotion 30) 30) ....) Other Supplies and Consumables2 599) 592) (1.2) TOTAL 6 069) 6 163) 1.5)
EXPENSE BY OUTPUT 6.1 Minerals Exploration and Land Management 3 019) 3 084) 2.2) 6.2 Tenement Management of the Exploration and Minerals Industry 2 632) 2 661) 1.1) 6.3 Project Codes 68) 68) ....) 6.4 Rehabilitation of Degraded Mineral Lands 350) 350) ....) TOTAL 6 069) 6 163) 1.5)
Notes: 1. The reduction in Annual Appropriation is mainly due to increased funding provided for the State Service Wages Agreement offset by a reduction for funding provided in 2003-04 for the 27th pay and a reduction to transfer funds for increased costs of rental to Output Group 8 - Support for Racing Industry. 2. The decrease in Other Supplies and Consumables is mainly due to a reduction to transfer funds for increased costs of rental to Output Group 8 - Support for Racing Industry.
Chapter 7: Infrastructure, Energy and Resources 205 Major Issues and Initiatives for 2004-05
Major issues and initiatives for 2004-05 are to:
• continue the updating of data for the Tasmanian Information on Geoscience and Exploration Resources (TIGER) system;
• undertake a series of promotional activities to encourage mineral exploration in the State, including the promotion of the three dimensional model of geological structure and major mineralising pathways of Tasmania;
• produce land stability maps of urban areas in Tasmania, in line with the guidelines developed following the Thredbo disaster;
• continue rehabilitation of abandoned mining sites in Tasmania; and
• undertake stage two of the core library extension.
Table 7.13: Performance Information - Output Group 6 2003-04 Actual to Unit of 2002-03 2003-04 31 March 2004-05 Performance Measure Measure Actual Target 2004 Target
Digital geoscientific coverage of Tasmania, 1:25 000 scale (418 maps needed to cover Number of State)1 Maps 14 12 12 12 Digital geoscientific coverage of the State's Number of geohazards Maps 0 1 4 6 Digital geoscientific coverage of the State's Number of groundwater resources2 Maps 1 4 0 0 Planning Maps3 Number of Maps 21 21 0 0 Collection of Primary Digital Geoscientific Data4 Square Kms 200 200 20 0
Notes: 1. Mineral Resources Tasmania is compiling existing data to reproduce old maps in a digital format and to populate the TIGER system. 2. Groundwater maps are in progress, however producing maps associated with the Western Tasmanian Regional Minerals Program have tied up mapping resources. MRT is endeavouring to complete the target of four maps in the last quarter of 2003-04. 3. The Planning Map series consists of four themes - land stability, groundwater, construction material sources, and mineral prospectivity - 21 maps cover the state for each theme. Three themes are complete. Again producing maps associated with the Western Tasmanian Regional Minerals Program have tied up mapping resources. MRT is endeavouring to complete the fourth theme in the last quarter of 2003-04. 4. Staff resources are being diverted from the collection of primary digital geoscientific data towards compilation of data for the TIGER system.
206 Chapter 7: Infrastructure, Energy and Resources Output Group 7: Support for the Minister in Infrastructure Development and Government Business Management Description
The focus of this Output Group is to provide the Minister for Infrastructure, Energy and Resources with strategic policy advice and support in relation to economic development and business management issues in accordance with Tasmania Together, the Industry Development Plan and Partnership Agreements. This Output Group arises out of the Minister's need for high level advice across portfolios and contributes to a broad range of the Tasmania Together goals.
The focus of this Output Group is:
• the oversight of the Department's involvement in major projects; and
• support and provision of policy advice aimed at ensuring that Government requirements and expectations are met in relation to Government Business Enterprises, State-owned Companies and Statutory Boards for which the Minister is Portfolio Minister or joint shareholder and Statutory Authorities for which the Minister is responsible. The entities are Hydro Tasmania, Forestry Tasmania, Transend Networks Pty Ltd, Aurora Energy Pty Ltd, the Printing Authority of Tasmania, the Forest Practices Board and Private Forests Tasmania.
Officers of the Department provide these Outputs.
The Output Group contributes to Departmental Outcomes, specifically by providing policy advice to the Minister.
Chapter 7: Infrastructure, Energy and Resources 207 Table 7.14: Summary Financial Information - Output Group 7 Support for the Minister in Infrastructure Development and Government 2003-04) 2004-05) Business Management Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 556) 548) (1.4) TOTAL 556) 548) (1.4)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 358) 365) 2.0) Other Employee Related Expenses 21) 21) ....) Superannuation 42) 44) 4.8) Supplies and Consumables Consultants 2) 2) ....) Maintenance and Property Services 2) 2) ....) Communications 7) 7) ....) Information Technology 4) 4) ....) Travel and Transport 59) 59) ....) Other Supplies and Consumables2 48) 47) (2.1) TOTAL 543) 551) 1.5)
EXPENSE BY OUTPUT 7.1 Support for the Minister in Infrastructure Development and Government Business Management 543) 551) 1.5) TOTAL 543) 551) 1.5)
Notes: 1. The reduction in Annual Appropriation is mainly due to increased funding provided for the State Service Wages Agreement offset by a reduction for funding provided in 2003-04 for the 27th pay and a reduction to transfer funds for increased costs of rental to Output Group 8 - Support for Racing Industry. 2. The decrease in Other Supplies and Consumables is mainly due to a reduction to transfer funds for increased costs of rental to Output Group 8 - Support for Racing Industry.
Major Issues and Initiatives for 2004-05
Major issues and initiatives for 2004-05 are to:
• provide advice on key policy issues in relation to resource regulation and management;
• progress the monitoring and strategic planning of issues associated with the Regional Forest Agreement, including the outcomes of the first five-yearly review of implementation; and
• coordinate and support new industry developments.
208 Chapter 7: Infrastructure, Energy and Resources Table 7.15: Performance Information - Output Group 7 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Set and maintain high standards in Satisfaction: administrative process and policy Minister's development that meet end- users needs Office and including the Agency and the Minister. Agency n.a. Satisfied Satisfy Satisfy
Output Group 8: Support for Racing Industry Description
This Output Group ensures that probity and integrity is maintained within the racing industry.
The focus of this Output Group is:
• support and provision of policy advice aimed at ensuring that Government requirements and expectations are met in relation to Totalizator Agency Board (trading as TOTE Tasmania), a State-owned Company for which the Minister is Portfolio Minister.
• registration of race clubs and racecourses;
• operations of the Stipendiary Stewards Panel;
• registration and licensing of industry participants and racing animals pursuant to the Rules of Racing;
• registration and regulation of bookmakers;
• industry training;
• administrative support for the Tasmanian Racing Appeal Board; and
• administration of and monitoring compliance with legislation.
The main users of this Output Group are the Minister for Racing, Industry Code Councils, Race Clubs, Racing Industry bodies and participants.
The Output is delivered by officers of the Department, based in Launceston and at racing locations throughout the State.
This Output Group contributes to the Department's outcome of maintenance of probity and integrity in the racing industry.
Chapter 7: Infrastructure, Energy and Resources 209 Table 7.16: Summary Financial Information - Output Group 8 2003-04) 2004-05) Support for Racing Industry Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 1 662) 1 735) 4.4) Fines and Regulatory Fees 224) 224) ....) Sales of Goods and Services 2) 2) ....) Other Revenue2 383) 6) (98.4) TOTAL 2 271) 1 967) (13.4)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 930) 971) 4.4) Other Employee Related Expenses 83) 85) 2.4) Superannuation 103) 107) 3.9) Depreciation and Amortisation 8) 8) ....) Grants and Transfer Payments 125) 125) ....) Supplies and Consumables Maintenance and Property Services3 23) 84) 265.2) Communications 45) 45) ....) Information Technology 53) 53) ....) Travel and Transport 142) 142) ....) Other Supplies and Consumables 359) 359) ....) TOTAL 1 871) 1 979) 5.8)
EXPENSE BY OUTPUT 8.1 Racing Industry 1 871) 1 979) 5.8) TOTAL 1 871) 1 979) 5.8)
Notes: 1. The increase in Annual Appropriation is mainly due to increased funding provided for the State Service Wages Agreement and an increased rental requirement. These additional funds have been partially offset by a reduction for funding provided in 2003-04 for the 27th pay. 2. The reduction in Other Revenue relates to allocations shown for the value of the estimated increase in the Minister's stakeholder ownership in TOTE Tasmania Pty Ltd being transferred to Finance-General. 3. The increase in maintenance and property services relates to increased costs of rental for Racing Services accommodation. These funds are provided by way of transfer from other Output Groups.
Major Issues and Initiatives for 2004-05
Major issues and initiatives for 2004-05 are to:
• complete and implement new racing legislation;
• provide advice to the Minister and implement outcomes of the racing industry restructure proposals;
210 Chapter 7: Infrastructure, Energy and Resources • continue to develop vocational training opportunities for racing industry personnel, including hosting the Racing Training Australia National Conference in September 2004;
• develop a competency based stewards training package;
• maintain an effective and affordable drug detection regime supported by a methodical research program;
• further streamline procedures for licensing and registration in the racing industry, including examining the possibility of introducing photo licensing for participants; and
• establish Information Technology access for stewards at all race meetings.
Table 7.17: Performance Information1 - Output Group 8 Unit of 2000-01 2001-02 2002-03 2003-04 2004-05 Performance Measure Measure Actual Actual Actual Target Target
Industry participant licences issued Number 1 008 1 010 983 1 000 1 000 Registrations of racing animals Number 875 797 890 880 900 Bookmakers registered Number 14 15 15 16 17 Bookmaker's clerks registered Number 94 117 133 145 145 Race clubs registered Number 16 16 16 15 15 Racecourses registered Number 17 17 17 17 17 Appeals lodged Number 14 24 14 35 25 Appeals determined Number 11 17 10 30 20
Note: The racing season is 1 August to 31 July.
Output Group 9: Transport Subsidies and Concessions Description
This Output Group recognises transport subsidies and concession payments.
The focus of this Output Group is:
• contract payments for the provision of the Bruny Island Ferry Service;
• contract payments for the operation of a shipping service to the Furneaux Group of islands;
• contingency arrangements to assist King Island with its shipping services in accordance with formalised arrangements negotiated as part of the Partnership Agreement with the King Island Council;
• subsidisation of the commercial fares necessary to support the full range of Metro Tasmania Pty Ltd services to pensioners, students and the unemployed;
• contract payments to school bus operators during the school year;
• contract payments to urban bus service operators, excluding Metro Tasmania Pty Ltd; and
Chapter 7: Infrastructure, Energy and Resources 211 • the payment of contributions towards the construction of unmade streets as provided under the Local Government (Highways) Act 1982.
The Output is delivered by officers of the Department and the costs of administration of these items can be found in Output Group 1 - Development of Transport Policy Advice and Planning and Output Group 3 - Provision of Transport Services and Infrastructure. The amounts shown for each item represent the payments made to contractors and others.
This Output Group contributes to a safe, accessible and equitable transport system that enhances economic development.
Table 7.18: Summary Financial Information - Output Group 9
2003-04) 2004-05) Transport Subsidies and Concessions Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 41 708) 43 006) 3.1) Reserved by Law 52) 52) ....) TOTAL 41 760) 43 058) 3.1)
OPERATING EXPENSES Grants and Transfer Payments1 41 499) 42 797) 3.1) Supplies and Consumables Other Supplies and Consumables 261) 261) ....) TOTAL 41 760) 43 058) 3.1)
EXPENSE BY OUTPUT 9.1 Bruny Island Ferry Service1 493) 508) 3.0) 9.2 Furneaux Shipping Contract 207) 207) ....) 9.3 King Island Shipping 49) 49) ....) 9.4 CSO: Payment to Metro Tas Pty Ltd1 20 877) 21 557) 3.3) 9.5 Payments to School Bus Operators: Contract Services1 18 832) 19 397) 3.0) 9.6 Urban Bus Service1 1 250) 1 288) 3.0) 9.7 Contribution towards the Construction of Streets in Towns by Municipal Councils 52) 52) ....) TOTAL 41 760) 43 058) 3.1)
Note: 1. The increase in Annual Appropriation is due to increased funding provided for indexation of Subsidies and Concession payments.
212 Chapter 7: Infrastructure, Energy and Resources Administered Items Grants and Subsidies
Table 7.19 provides a summary of Grants and Subsidies paid by the Department of Infrastructure, Energy and Resources. A brief description of each payment follows the Table.
Table 7.19: Grants and Subsidies Financial Summary 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) REVENUE Revenue from Government Annual Appropriation1 14 580) 15 532) 6.5) Other Revenue 173 831) 173 836) ....) TOTAL 188 411) 189 368) 0.5)
EXPENSES Contribution to Marine and Safety Authority 700) 700) ....) Conveyance Allowance 733) 733) ....) Interdominion Grant 25) 25) ....) Monies Received on Behalf of External Bodies 172 068) 172 068) ....) National Road Transport Commission (NRTC): Local Government Contribution 1 500) 1 500) ....) Payments on Behalf of the Forest Practices Board 1 757) 1 769) 0.6) Payments to School Bus Operators: Route Services1 6 940) 7 148) 2.9) Pensioner Air Travel Subsidy 8) 8) ....) Pensioner, Aged and Unemployed Concessions (Private Operators)1 903) 1 081) 19.7) Private Forests Tasmania 1 201) 1 214) 1.0) Tasmanian Racing Assistance 1 060) 1 060) ....) Transport Access Scheme1 1 510) 2 063) 36.6) TOTAL 188 405) 189 369) 0.5)
Note: 1. The increase in Annual Appropriation is due to increased funding provided for indexation of Subsidies and Concession payments and increased funding provided for increased costs for Pensioner, Aged and Unemployed Concessions and the Transport Access Scheme.
Contribution to Marine and Safety Tasmania Marine and Safety Tasmania (MAST) has responsibility for the management of the Government's non-commercial marine facilities and Tasmania's marine regulatory environment. This contribution supports MAST in carrying out its functions. This contribution is linked to Output Group 1 - Development of Transport Policy Advice and Planning. Conveyance Allowance The Department administers allowances to parents and guardians for the cost of transporting full time students by private car to the nearest appropriate bus stop, or school, if the student lives five kilometres or
Chapter 7: Infrastructure, Energy and Resources 213 more from their nearest bus stop or school. Allowances are also paid to some Bass Strait Islands residents to send students to further their education on mainland Tasmania or in other states. These allowances are linked to Output Group 3 - Provision of Transport Services and Infrastructure. Monies Received on Behalf of External Bodies The Department is responsible for the collection of revenue on behalf of other agencies and organisations and the transfer of those funds on an agreed basis. The following revenues are processed through the Department's Operating Account and then forwarded to the relevant organisation:
• motor tax;
• duties;
• Motor Accidents Insurance Board premiums;
• State Fire Service levy; and
• Federal Interstate Registration Scheme payments.
This contribution is linked to Output Group 2 - Land Transport Safety Programs. National Road Transport Commission (NRTC): Local Government Contribution In accordance with NRTC reforms, which were introduced during 1996-97, local road tolls were abolished from the date of adoption of national heavy vehicle charges. Under the reform measures, $1.5 million is to be provided annually from motor tax receipts to Local Government to compensate for loss of revenues from heavy vehicles. This contribution is linked to Output Group 2 - Land Transport Safety Programs. Payments on Behalf of the Forest Practices Board The Department provides a bureau service for the processing of salaries and expenses, financial reporting and some facilities management. This Administered Payment represents these outgoings. Payments to School Bus Operators: Route Services In accordance with Government policy, provision is made for payments to operators of private route service buses to supplement the fare revenue from students which is set at levels significantly below the commercial adult fare. Students who hold approved concession passes travel free and this item provides for payment of the student fare plus government contribution to operators in such instances. These payments are linked to Output Group 3 - Provision of Transport Services and Infrastructure. Pensioner Air Travel Subsidy Aged pensioner residents of the Bass Strait Islands are entitled to the equivalent of 50 per cent of the return airfare for one visit per annum to Northern Tasmania. Aged pensioners travelling between the Bass Strait Islands and Hobart are entitled to a subsidy equivalent to that applying between the Islands and Northern Tasmania. This subsidy is linked to Output Group 3 - Provision of Transport Services and Infrastructure. Pensioner, Aged and Unemployed Concessions (Private Operators) Subsidy schemes are in place to enable pensioners, the aged and unemployed persons to obtain concession fares for travel on privately owned buses and the Mersey River Ferry. These subsidies are linked to Output Group 3 - Provision of Transport Services and Infrastructure.
214 Chapter 7: Infrastructure, Energy and Resources Private Forests Tasmania This payment represents the State Government's contribution to Private Forests Tasmania (PFT). PFT's objective is to facilitate and expand the development of the private forest resource in Tasmania in a manner that is consistent with sound forest land management practice through:
• promoting the development of private forestry in Tasmania;
• fostering competitive markets for private forest growers;
• providing strategic planning and policy direction for private forestry in Tasmania;
• fostering progressive and incremental funding from all private forest growers to fund PFT;
• fostering commercial wood production forestry on private land in Tasmania; and
• promoting the use and value of trees in sustainable land management. Transport Access Scheme A range of concessions and benefits are available under the Transport Access Scheme to provide assistance to people who have permanent physical or intellectual disabilities, to enable them to use the range of transport facilities available to the general community. This subsidy is linked to Output Group 3 - Provision of Transport Services and Infrastructure. Tasmanian Racing Assistance This payment is directed towards the stakes for thoroughbred, harness and greyhound racing. It is provided to support the level of the programs and stake levels in each of the codes. This contribution is linked to Output Group 8 - Support for Racing Industry. Interdominion Grant This payment is for the funding of the fourth of eight annual grants of $25 000 to the racing industry. This funding is provided to support the return of the Interdominion Pacing Championship to Tasmania in 2006. This contribution is linked to Output Group 8 - Support for Racing Industry. Revenue Collected on Behalf of the Consolidated Fund
Table 7.20 summarises the Revenue Collected on behalf of the Consolidated Fund by the Department. A brief description of each revenue item follows the Table.
Chapter 7: Infrastructure, Energy and Resources 215 Table 7.20: Revenue Collected on Behalf of the Consolidated Fund 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) REVENUE1 Fines and Regulatory Fees2 6 894) 6 183) (10.4) Grants3 14 696) 27 836) 89.4) Other Revenue4 ....) 43) ....) Sales of Goods and Services5 11 729) 11 697) (0.3) Taxation6 22 917) 23 090) 0.7) TOTAL REVENUE 56 236) 68 849) 22.4)
Transfers to the Consolidated Fund1 Certificate of Competency Fees2 104) 106) 1.9) Commonwealth Capital Grants3 14 696) 27 836) 89.4) Driver's Licences2 5 562) 4 393) (21.1) Electrical Contractors and Technicians5 ....) 366) ....) Fines2 126) 129) 2.3) MAIB Commission5 1 367) 1 624) 18.8) Motor Vehicle Taxes and Fees 22 917) 23 090) 0.7) Other Fees and Recoveries2 271) 592) 118.4) Other Revenue 4 ....) 43) ....) Other Sales of Services5 2 172) 1 158) (46.7) Personalised and Custom Plates5 161) 350) 117.3) Photo Licence Fees2 687) 917) 33.4) Sales of Goods5 29) 199) 586.2) Vehicle Inspection Services fees2 144) 46) (68.1) Mineral Royalty Income5 8 000) 8 000) ....) TOTAL TRANSFERS TO THE CONSOLIDATED FUND 56 236) 68 849) 22.4)
Notes: 1. The change in allocations between items is a result of a review of classifications between items collected and transferred to the Consolidated Fund. This has caused major variations between the 2003-04 Budget and 2004-05 Budget allocations. 2. The decrease in Fines and Regulatory Fees relates mainly to a decrease in Drivers Licence collections due to fluctuations in the 5 yearly license renewal profile where clients have the option of renewing licenses for a 1 to 5 year period. 3. The increase in Grants is due to an increased allocation of National Road funding from the Commonwealth 4. The new allocation for Other Revenue is due to the review of classifications between items collected and transferred to the Consolidated Fund. This item was classified differently in 2003-04. 5. The slight decrease in Sale of Goods and Services is related mainly to a review of classifications between items collected and transferred to the Consolidated Fund. Certificate of Competency Fees Revenue is received from the issuing of certificates to accredited providers of Workplace Health and Safety inspection services. This revenue is linked to Output Group 5 - Workplace Standards.
216 Chapter 7: Infrastructure, Energy and Resources Contract Media Sales Revenue is received from placing advertising material in envelopes containing registration or licence renewal notices. This revenue is linked to Output Group 2 - Land Transport Safety Programs. Disqualified Driver Charges Revenue is collected from drivers who are applying for the re-issue of their cancelled licence. This revenue is linked to Output Group 2 - Land Transport Safety Programs. Driver Licences Revenue is collected for the issue and re-issue of driver licences. This revenue is linked to Output Group 2 - Land Transport Safety Programs. Electrical Contractors and Technicians This item represents revenue from licensing requirements for electrical contractors and technicians. The majority of the anticipated revenue will be collected from electrical contractors who are now licensed annually with compulsory insurance and from electrical technicians who are now licensed on a rolling triennial basis. Some minor revenue will be collected for provisional licences that are issued once only and from electrical approvals. This revenue is linked to Output Group 5 - Workplace Standards. Escort Fees (Overdimension/Overload) The Department's transport inspectors provide vehicle escorts for overlength and overwidth vehicles as a service to the transport industry in order to increase the level of safety for the travelling public. This revenue is linked to Output Group 2 - Land Transport Safety Programs. Geological Services This item represents revenue from the occasional external geoscientific services provided by Mineral Resources Tasmania (MRT). These services cannot be obtained elsewhere in Tasmania, and are only provided to clients when MRT has spare capacity. This revenue is linked to Output Group 6 - Mineral Resources Management and Administration. Light Vehicle Registration Fees Revenue is collected for the registration and the transfer of vehicle ownership. This revenue is linked to Output Group 2 - Land Transport Safety Programs. MAIB Commission Charges are levied on the Motor Accidents Insurance Board for the collection of premiums. This revenue is linked to Output Group 2 - Land Transport Safety Programs. Motor Lists Lists of registered owners are provided to Local Government for the serving of outstanding parking meter infringements. This revenue is linked to Output Group 2 - Land Transport Safety Programs. Other Fees and Recoveries This item represents miscellaneous Departmental revenues. This revenue is linked to a number of the Department's Output Groups. Personalised and Custom Plates Charges are applied for non-standard registration plates. This revenue is linked to Output Group 2 - Land Transport Safety Programs.
Chapter 7: Infrastructure, Energy and Resources 217 Photo Licence Fees Revenue is collected from drivers requiring a replacement photo licence. This revenue is linked to Output Group 2 - Land Transport Safety Programs. Sales of Maps and Publications This item represents the sale of maps and publications produced by Mineral Resources Tasmania. This revenue is linked to Output Group 6 - Mineral Resources Management and Administration. Vehicle Inspection Services Fees Revenue is earned from the inspection of new vehicles and vehicles being re-registered. This revenue is linked to Output Group 2 - Land Transport Safety Programs. Weighbridge Fines Revenue is collected as a fine imposed by the courts for breach of the prescribed vehicle weight limits and road regulations. This revenue is linked to Output Group 2 - Land Transport Safety Programs.
Capital Investment Program
The Department's Capital Investment Program for 2004-05 consists of the Roads Program and stage two of the Mineral Resources Core Library extensions. Roads Program The Roads Program supports the development and maintenance of the road network, including roads, bridges, drainage structures, signs, pavement marking and other associated assets whilst meeting social and environmental objectives. Also included is the operation of a number of bridges, responding to emergency events and urgent safety and community issues. These assets are maintained to appropriate service levels as determined by the target standards for each road category within the road hierarchy.
The major activities of the Program relate to the development and delivery of a capital and maintenance works roads program for the National Highway and the State Arterial Network, and the development of strategies and priority assessments to preserve the road asset and infrastructure.
Departmental staff undertake the assessment and documentation of the transport task and works program, provide maintenance of contract systems and implement statutory processes. External service providers are engaged to assist the development of projects from the concept stage through community input and approval phases, to the works tender stage, whilst all works contracts are externally sourced. The maintenance of the classified road network is performed under a ten year contract for Southern Tasmania and five year contracts for the Northern and North-Western regions of Tasmania.
The general community, tourists and industry are the main beneficiaries of the Roads Program. Program delivery recognises increasing community awareness and the need for protection of the natural environment, including issues such as noise pollution, environmental damage and protection of animal habitat and threatened species, whilst still requiring a road asset that will yield high economic, safety or social equity returns for the State.
The Roads Program directly contributes to the achievement of the departmental outcome of a safe, accessible and equitable transport system that enhances economic development.
Major Roads Program activities funded from the Capital Investment Program during 2004-05 include:
• continue development of the Bass Highway between Ulverstone and Burnie;
218 Chapter 7: Infrastructure, Energy and Resources • continue improvements to the West Tamar Highway between Cormiston Creek and Legana;
• continue development and implement specific improvements associated with the North East Tasmania Access Study;
• commence improvements to the Huonville loop ramp at the Channel Highway, Kingston Interchange;
• continue planning for the replacement of the Bridgewater bridge at Granton;
• continue implementation of the plan for roads and bridges to extend the proportion of the network available to heavy vehicles operating at increased mass limits and high productivity vehicles;
• implement projects identified under the Tasmanian Safer Roads program; and
• commence improvements to the Glen Huon Road.
The Department of Infrastructure, Energy and Resources is underpinning its commitment to maintenance of road and bridge assets through the allocation of additional funds from the Economic and Social Infrastructure Fund to the following major projects:
• replacement of two bridges on the Hastings Cave Tourist Road and the bridge over Forsters Rivulet on the Lymington Main Road;
• replacement of the Maclaines Creek bridge at Triabunna;
• pavement strengthening, widening and improvements on the Esk Main Road;
• pavement strengthening, Henty Main Road;
• pavement strengthening Bass Highway, west of Crayfish Creek;
• pavement strengthening on the East Tamar Highway between Charles Street and Main Street; and
• stage two of pavement strengthening works on Mud Walls Secondary Road. Mineral Resources Core Library extensions The Department undertook stage one of the core library fit out in 1999-00, which involved construction of a new module and racking, and purchase of a fork lift truck. The existing store was then largely decommissioned due to the inefficient and unsafe nature of the storage.
Funding has been allocated to supply and fit out the original core library with racking for storage, and to purchase timber for pallet construction for storage.
Details of the Capital Investment Program are provided in Chapter 6 of Budget Paper No 1 Budget Overview 2004-05.
Chapter 7: Infrastructure, Energy and Resources 219 Table 7.21: Capital Investment Program 2004-05) Budget) $'000) New Projects Mineral Core Store Extension 465)
Continuing Projects Asset Management 5 790) Environmental Management 854) Infrastructure Development 34 210) Infrastructure Maintenance 34 238) Program Management 4 000) Road Safety and Traffic Management 2 918) Strategic Planning and Policy 2 090)
TOTAL CAPITAL INVESTMENT PROGRAM 84 565)
220 Chapter 7: Infrastructure, Energy and Resources DETAILED BUDGET STATEMENTS
Table 7.22: Output Group Expense Summary for the Department of Infrastructure, Energy and Resources 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) Minister for Infrastructure, Energy and Resources Output Group 1 - Development of Transport Policy Advice and Planning 1.1 Passenger Transport Policy Advice and Planning 786) 808) 2.8) 1.2 Freight Transport Policy Advice and Planning 589) 617) 4.8) 1.3 Transport System Policy Advice and Planning 631) 648) 2.7) 2 006) 2 073) 3.3) Output Group 2 - Land Transport Safety Programs 2.1 Traffic Management Standards 1 149) 1 173) 2.1) 2.2 Road Safety Research, Education, Promotion and Advice 2 328) 2 379) 2.2) 2.3 Driver Licensing 7 221) 6 840) (5.3) 2.4 Vehicle Registration 4 313) 4 439) 2.9) 2.5 Vehicle Standards and Compliance 3 547) 3 659) 3.2) 18 558) 18 490) (0.4) Output Group 3 - Provision of Transport Services and Infrastructure 3.1 Traffic Signal Maintenance 4 637) 4 758) 2.6) 3.2 Island Shipping 27) 27) ....) 3.3 Provision and Management of Public Passenger Transport 2 188) 2 710) 23.9) 6 852) 7 495) 9.4) Output Group 4 - Provision of Energy Advisory and Regulatory Services 4.1 Energy Policy and Advice 565) 575) 1.8) 565) 575) 1.8) Output Group 5 - Workplace Standards 5.1 Safety Standards and Compliance 6 575) 6 797) 3.4) 5.2 Employer and Employee Services 4 519) 4 633) 2.5) 5.3 Workplace Standards and Advice 1 044) 1 087) 4.1) 5.4 Electricity Industry Regulation 551) 565) 2.5) 12 689) 13 082) 3.1) Output Group 6 - Mineral Resources Management and Administration 6.1 Minerals Exploration and Land Management 3 019) 3 084) 2.2) 6.2 Tenement Management of the Exploration and Minerals Industry 2 632) 2 661) 1.1) 6.3 Project Codes 68) 68) ....) 6.4 Rehabilitation of Degraded Mineral Lands 350) 350) ....) 6 069) 6 163) 1.5)
Chapter 7: Infrastructure, Energy and Resources 221 Table 7.22: Output Group Expense Summary for the Department of Infrastructure, Energy and Resources (continued) 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %)
Output Group 7 - Economic Development and Business Management Support 7.1 Support for the Minister in Infrastructure Development and Government Business Management 543) 551) 1.5) 543) 551) 1.5) Output Group 9 - Transport Subsidies and Concessions 9.1 Bruny Island Ferry Service 493) 508) 3.0) 9.2 Furneaux Shipping Contract 207) 207) ....) 9.3 King Island Shipping 49) 49) ....) 9.4 CSO: Payment to Metro Tas Pty Ltd 20 877) 21 557) 3.3) 9.5 Payments to School Bus Operators: Contract Services 18 832) 19 397) 3.0) 9.6 Urban Bus Service 1 250) 1 288) 3.0) 9.7 Contribution towards the Construction of Streets in Towns by Municipal Councils 52) 52) ....) 41 760) 43 058) 3.1)
Grants and Subsidies 187 320) 188 284) 0.5)
Other 101 252) 115 007) 13.6)
Minister for Racing Output Group 8 - Support for Racing Industry 8.1 Racing Industry 1 871) 1 979) 5.8) 1 871) 1 979) 5.8)
Grants and Subsidies 1 085) 1 085) ....)
TOTAL AGENCY 380 570) 397 842) 4.5)
222 Chapter 7: Infrastructure, Energy and Resources Table 7.23: Statement of Financial Performance for the Department of Infrastructure, Energy and Resources 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 153 731) 170 291) 10.7) Reserved by Law 52) 52) ....) Other2 3 700) 2 000) (46.0) Fines and Regulatory Fees 134) 134) ....) Investment Income 40) 40) ....) Grants 4 270) 4 270) ....) Sales of Goods and Services3 465) 525) 12.9) Proceeds from the Disposal of Assets 5) 5) ....) Other Revenue 255) 255) ....) TOTAL 162 652) 177 572) 9.1)
OPERATING EXPENSES Employee Entitlements4 33 681) 35 075) 4.1) Superannuation4 3 706) 3 802) 2.5) Depreciation and Amortisation5 72 138) 79 357) 10.0) Grants and Transfer Payments6 42 842) 44 140) 3.0) Supplies and Consumables7 39 798) 46 099) 15.8) TOTAL 192 165) 208 473) 8.4)
NET OPERATING RESULT (29 513) (30 901) 4.7)
ADMINISTERED ITEMS
REVENUE Revenue from Government Annual Appropriation8 14 580) 15 532) 6.5) Taxation 22 917) 23 090) 0.7) Fines and Regulatory Fees9 6 994) 6 283) (10.2) Grants10 16 350) 29 495) 80.3) Sales of Goods and Services 11 631) 11 599) (0.3) Proceeds from the Disposal of Assets 1) 1) ....) Other Revenue11 196 714) 172 217) (12.5) TOTAL 269 187) 258 217) (4.1)
Chapter 7: Infrastructure, Energy and Resources 223 Table 7.23: Statement of Financial Performance for the Department of Infrastructure, Energy and Resources (continued) 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) EXPENSES Grants and Subsidies Employee Entitlements12 1 153) 2 028) 75.8) Superannuation12 132) 224) 69.6) Depreciation and Amortisation 1) 1) ....) Grants and Transfer Payments 186 480) 186 477) (0.1) Supplies and Consumables 639) 639) ....) Total Grants and Subsidies 188 405) 189 369) 0.5) Transfer to the Consolidated Fund 56 236) 68 849) 22.4) TOTAL 244 641) 258 218) 5.5)
Notes: 1. The increase in Annual Appropriation is due to increased funding provided for the State Service Wages Agreement, funding provided for a Review of Core Regular Passenger Transport Services, increased funding for Driver Licences and Registration Plates, funding provided for indexation increases for Transport Subsidies and Concessions, an increase in funding provided by the Commonwealth for the National Highway, funding provided for the Stage 2 of the Mineral Resources Core Store extension and the requirement to pay Local Government charges. These additional funds have been offset by a reduction for funding provided in 2003-04 for the 27th pay and reductions in funding for Digitised Licensing, Novice Driver and Maintenance of Infrastructure Systems initiatives funded in previous financial years. 2. The reduction in Other Revenue from Government relates to monies to be carried forward from 2003-04 to 2004-05 for the National Highway. 3. The increase in Sales of Goods and Services relates to the devolution of rental income for properties owned by DIER from the Department of Primary Industries, Water and Environment. 4. The increase in Employee Entitlements and Superannuation relates mainly to funding provided for the State Service Wages Agreement and funding provided for a Review of Core Regular Passenger Transport Services. These additional funds have been offset by a reduction for funding provided in 2003-04 for the 27th pay and reductions in funding for Digitised Licensing, Novice Driver and Maintenance of Infrastructure Systems initiatives funded in previous financial years . 5. The increase in Depreciation and Amortisation relates mainly to increased depreciation of the road network. 6. The increase in Grants and Transfer Payments relates mainly to indexation provided for Transport Subsidies and Concessions. 7. The increase in Supplies and Consumables relates mainly to increased funding provided by the Commonwealth for the National Highway. 8. The increase in Annual Appropriation is due to increased funding provided for the Transport Access Scheme and Pensioner, Aged and Unemployment Concessions and funding provided for indexation increases for Grants and Subsidies items. 9. The decrease in Fines and Regulatory Fees relates mainly to a decrease in Drivers' License collections due to fluctuations in the 5 yearly licence renewal profile where clients have the option of renewing licences for a 1 to 5 year period. 10. The increase in Grants mainly relates to increased funding provided by the Commonwealth for the National Highway. 11. The reduction in Other Revenue relates mainly to allocations shown for the value of the estimated increase in the Minister's stakeholder ownership in the Burnie Ports Corporation Pty Ltd, the Hobart Ports Corporation Pty Ltd, the Port of Devonport Corporation Pty Ltd, the Port of Launceston Pty Ltd, Metro Tasmania Pty Ltd, Aurora Energy Pty Ltd, Transend Networks Pty Ltd and TOTE Tasmania Pty Ltd in 2003-04 being transferred to Finance-General. 12. The increase in Employee Entitlements and Superannuation relates to funding provided for the State Service Wages Agreement and a change in the classification of expenditure items for Private Forests Tasmania. These additional funds have been offset by a reduction for funding provided in 2003-04 for the 27th pay.
224 Chapter 7: Infrastructure, Energy and Resources Table 7.24: Statement of Financial Position as at 30 June for the Department of Infrastructure, Energy and Resources 2004) 2005) Budget) Budget) Variation) $'000) $'000) %) CURRENT ASSETS Cash1 2 669) 5 053) 89.3) Receivables2 234) 377) 61.1) Prepayments3 1 150) 1 901) 65.3) Tax Assets4 ....) 1 697) ....) Other5 97) 192) 97.9) TOTAL 4 150) 9 220) 122.1)
NON-CURRENT ASSETS Receivables 238) 233) (2.2) Land and Buildings6 9 476) 10 135) 6.9) Plant and Equipment7 6 785) 6 055) (10.8) Infrastructure8 2 750 771) 2 997 083) 8.9) Other9 10 675) ....) (100.0) TOTAL 2 777 945) 3 013 506) 8.4)
TOTAL ASSETS 2 782 095) 3 022 726) 8.6)
CURRENT LIABILITIES Payables10 1 944) 1 427) (26.6) Employee Entitlements11 3 697) 3 115) (15.8) Accrued Expenses12 1 166) 1 396) 19.7) Other ....) (56) ....) TOTAL 6 807) 5 882) (13.6)
NON-CURRENT LIABILITIES Employee Entitlements11 5 283) 5 860) 10.9) TOTAL 5 283) 5 860) 10.9)
TOTAL LIABILITIES 12 090) 11 742) (2.9)
NET ASSETS 2 770 005) 3 010 984) 8.6)
Chapter 7: Infrastructure, Energy and Resources 225 Table 7.24: Statement of Financial Position as at 30 June for the Department of Infrastructure, Energy and Resources (continued) 2004) 2005) Budget Budget Variation) $'000) $'000) % ADMINISTERED ITEMS
CURRENT ASSETS Cash13 350) 799) 128.2) Receivables14 350) 2 406) 587.4) Tax Assets15 1 696) ....) (100.0) Other16 70) ....) (100.0) TOTAL 2 466) 3 205) 29.9)
NON-CURRENT ASSETS Receivables 5) 5) ....) Equity Investments17 515 350) ....) (100.0) Plant and Equipment 4) 2) (50.0) TOTAL 515 359) 7) (100.0)
TOTAL ASSETS 517 825) 3 212) (99.4)
CURRENT LIABILITIES Payables18 985) 1 257) 27.6) Employee Entitlements19 53) 94) 77.3) Other 1 800) 1 856) 3.1) TOTAL 2 838) 3 207) 13.0)
NON-CURRENT LIABILITIES Employee Entitlements19 127) 144) 13.3) TOTAL 127) 144) 13.3)
TOTAL LIABILITIES 2 965) 3 351) 13.0)
NET ASSETS 514 860) (139) (100.1)
Notes: 1. The increase in Cash is due to a review of the 2003-04 estimates and subsequent adjustment of the anticipated 2004-05 position. 2. The increase in Receivables is due to a review of the 2003-04 estimate and subsequent adjustment of the anticipated 2004-05 position. 3. The increase in Prepayments is due to a review of the 2003-04 estimate and subsequent adjustment of the anticipated 2004-05 position. 4. The increase in Tax Assets recognises the transfer of GST collections from an Administered to a Controlled transaction classification. 5. The increase in Other reflects an increase of stock on hand for Traffic Management Audio Tactile replacement
226 Chapter 7: Infrastructure, Energy and Resources 6. The increase in Land and Buildings is due to funding provided for the second stage of the Mineral Resources Core Store extension and properties acquired for future roads works. 7. The decrease in the value of Plant and Equipment is due to depreciation. 8. The increase in Infrastructure is due mainly to the transfer of traffic management assets from the Other classification, a revaluation of the road asset and capital improvements made to the road network. 9. The decrease in Other is due to the transfer of the traffic management asset to the Infrastructure classification. 10. The decrease in Payables is due to a review of the 2003-04 estimate and subsequent adjustment of the anticipated 2004-05 position. 11. The decrease in Current Liabilities - Employee Entitlements is mainly due to the reversal of amounts accrued over previous years to fund the 27th Pay in 2003-04. The increase in Non-Current Liabilities - Employee Entitlements is mainly due to increased costs as a result of the State Service Wages Agreement and the employment profile of longer term staff increasing. 12. The increase in Accrued Expenses is due to a review of the 2003-04 estimates and subsequent adjustment of the anticipated 2004-05 position. 13. The increase in Cash is due to a review of the 2003-04 estimates and subsequent adjustment of the anticipated 2004-05 position. 14. The increase in Receivables is mainly due to an outstanding Mining Royalty debt. 15. The decrease in Tax Assets reflects the transfer of GST collections from an Administered to a Controlled transaction classification. 16. The decrease in Other is due to a prepayment made in 2003-04 which will not re-occur in 2004-05 17. The decrease in Equity Investments is due to a decision to recognise all Equity Investments in Finance-General. 18. The increase in Payables is due to a review of the 2003-04 estimates and subsequent adjustment of the anticipated 2004-05 position. 19. The increase in Employee Entitlements reflects accrued entitlements at the Forest Practices Board.
Chapter 7: Infrastructure, Energy and Resources 227 Table 7.25: Statement of Cash Flows for the Department of Infrastructure, Energy and Resources 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) CASH FLOWS FROM OPERATING ACTIVITIES Receipts Revenue from Government Appropriation1 153 731) 170 291) 10.7) Reserved By Law 52) 52) ....) Fines and Regulatory Fees 134) 134) ....) Interest Received 40) 40) ....) Grants 4 270) 4 270) ....) Sales of Goods and Services2 465) 525) 12.9) GST Receipts ....) 10 398) ....) Other Receipts 255) 255) ....) Payments Employee Entitlements (34 838) (35 055) 0.6) Superannuation (3 706) (3 802) 2.5) Grants and Transfer Payments3 (42 842) (44 140) 3.0) Supplies and Consumables4 (39 798) (46 099) 15.8) GST Payments ....) 10 399) ....) NET CASH FROM/(USED IN) OPERATING ACTIVITIES 37 763) 46 470) 23.0)
CASH FLOWS FROM INVESTING ACTIVITIES Sale of Fixed Assets 5) 5) ....) Purchase of Fixed Assets5 (41 476) (48 500) 16.9) NET CASH FROM/(USED IN) INVESTING ACTIVITIES (41 471) (48 495) 16.9)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held (3 708) (2 025) (45.4)
Cash at the Beginning of Reporting Period6 6 377) 7 078) 10.9)
Cash at the End of Reporting Period 2 669) 5 053) 89.3)
228 Chapter 7: Infrastructure, Energy and Resources Table 7.25: Statement of Cash Flows for the Department of Infrastructure, Energy and Resources (continued) 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) ADMINISTERED ITEMS
CASH FLOWS FROM OPERATING ACTIVITIES Receipts Revenue from Government Appropriation7 14 580) 15 532) 6.5) Taxation 22 917) 23 090) 0.7) Fines and Regulatory Fees8 6 994) 6 283) (10.2) Grants9 16 350) 29 495) 80.3) Sales of Goods and Services 11 631) 11 599) (0.3) GST Receipts 10 398) ....) ....) Other Receipts 172 174) 172 217) ....) Payments Employee Entitlements10 (1 158) (2 026) 74.9) Superannuation10 (132) (224) 69.6) Grants and Transfer Payments (186 480) (186 477) (0.1) Supplies and Consumables (639) (639) ....) Transfers to the Consolidated Fund11 (56 236) (68 849) 22.4) GST Payments (10 399) ....) ....) NET CASH FROM/(USED IN) OPERATING ACTIVITIES ....) 1) ....)
CASH FLOWS FROM INVESTING ACTIVITIES Sale of Fixed Assets 1) 1) ....) Purchase of Fixed Assets (1) (1) ....) NET CASH FROM/(USED IN) INVESTING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held ....) 1) ....)
Cash at the Beginning of Reporting Period 350) 798) 128.0)
Cash at the End of Reporting Period 350) 799) 128.2)
Notes: 1. The increase in Annual Appropriation is due to increased funding provided for the State Service Wages Agreement, funding provided for a Review of Core Regular Passenger Transport Services, increased funding for Driver Licences and Registration Plates, funding provided for indexation increases for Transport Subsidies and Concessions, an increase in funding provided by the Commonwealth for the National Highway, funding provided for the Stage 2 of the Mineral Resources Core Store extension and the requirement to pay Local Government charges. These additional funds have been offset by a reduction for funding provided in 2003-04 for the 27th pay and reductions in funding for Digitised Licensing, Novice Driver and Maintenance of Infrastructure Systems initiatives funded in previous financial years.
Chapter 7: Infrastructure, Energy and Resources 229 2. The increase in Sales of Goods and Services relates to the devolution of rental income for properties owned by DIER from the Department of Primary Industries, Water and Environment. 3. The increase in Grants and Transfer Payments relates mainly to indexation provided for Transport Subsidies and Concessions. 4. The increase in Supplies and Consumables relates mainly to increased funding provided by the Commonwealth for the National Highway. 5. The increase in Purchase of Fixed Assets relates to mainly increased funding provided by the Commonwealth for the National Highway. 6. The variation between the estimate of Cash at the End of Reporting Period for 2003-04 and the Cash at the Beginning of Reporting Period for 2004-05 is due a review of the 2003-04 estimate and subsequent adjustment of the anticipated 2004-05 position 7. The increase in Annual Appropriation is due to increased funding provided for the Transport Access Scheme and Pensioner, Aged and Unemployment Concessions and funding provided for indexation increases for Grants and Subsidies items. 8. The decrease in Fines and Regulatory Fees relates to variations in the five year driver license renewal profile. 9. The increase in Grants relates to increased funding provided by the Commonwealth for the National Highway. 10. The increase in Employee Entitlements is due to a change in classification of payments made to Private Forests Tasmania. 11. The increase in Transfers to the Consolidated Fund is due mainly to increased funding from the Commonwealth for the National Highway.
Table 7.26: Reconciliation of Operating Expenses to Consolidated Fund Appropriation 2003-04 2004-05 Budget Budget $'000 $'000
Total Operating Expenses 380 570 397 842
Adjustments for Non-Cash Items Depreciation (72 139) (79 358) Employee Entitlements 1 155 (22) Supplies and Consumables …) …) Revenue 24 540 (22) Total Cash Cost of Outputs 334 126 318 440
Other Funding Sources (207 240) (181 065) Purchase of Capital Items 41 477 48 500
Total Consolidated Fund Appropriation 168 363 185 875
230 Chapter 7: Infrastructure, Energy and Resources 8 DEPARTMENT OF JUSTICE
AGENCY OUTLINE
The Department of Justice contributes to a safe and inclusive society by providing systems and services for the promotion and maintenance of rights and responsibilities, and the resolution of disputes, for the benefit of the Tasmanian community.
The Department recognises that in order to achieve the desired outcomes it must work closely with the community and other areas of government. It must also coordinate, facilitate and monitor initiatives undertaken by the Courts, Tribunals and statutory officers who are linked to the Department.
The Department provides administrative support for the Supreme and Magisterial Courts, the Tasmanian Industrial Commission, the Tasmanian Legal Aid Commission and the Workers' Rehabilitation and Compensation Tribunal. It also supports the Statutory Offices of the Solicitor-General, the Director of Public Prosecutions, the Ombudsman, the Health Complaints Commissioner, the Electricity Ombudsman, the Legal Ombudsman, and the Anti-Discrimination Commissioner. Each of these areas is separately accountable to Parliament.
The Department also includes Corrective Services, Crown Law, the Office of Consumer Affairs and Fair Trading, the Registry of Births, Deaths and Marriages, the Tasmanian Electoral Office, the Public Guardian, the Guardianship and Administration Board, the Mental Health Tribunal, and the Poppy Advisory and Control Board.
STRATEGIC FOCUS
The strategic focus of the Department, which is in line with the Tasmania Together vision, centres on three priority areas:
• the Criminal Justice Framework;
• fostering an inclusive society; and
• striving to achieve service delivery in accordance with the goals of Tasmania Together.
KEY STRATEGIES
In order to achieve, or assist in the achievement, of the above outcomes, the Department of Justice's Corporate Plan 2003 - 2008 has identified the following key strategies:
• manage the prison population to improve safety and security and the effectiveness of prison programs to reduce re-offending rates (Tasmania Together Goal 2 – Have a community where people feel safe and are safe in all aspects of their lives);
Chapter 8: Justice 231 • reduce re-offender rates through continued improvement in offender management programs (Tasmania Together Goal 2 – Have a community where people feel safe and are safe in all aspects of their lives);
• reduce domestic violence through the implementation and coordination of integrated systems to address issues relating to domestic violence (Tasmania Together Goal 2 – Have a community where people feel safe and are safe in all aspects of their lives);
• increase access to the justice system through improvement in the capacity of the court system to manage civil justice cases as efficiently as possible (this strategy is not related to any specific goal within the Tasmania Together targets or the Government's priority benchmarks for 2002-2005 but will support the achievement of the overall vision of Tasmania Together);
• reduce discrimination and fostering an inclusive society (Tasmania Together Goal 9 - Foster an inclusive society that acknowledges and respects our multicultural heritage, values, diversity and treats everyone with compassion and respect);
• increase the participation by staff, and where relevant other agencies and the community, in the Agency's decision-making processes to ensure that a wider variety of views are included (Tasmania Together Goal 8 – Provide a valued role in community life for Tasmania's young people now and in the future); and
• improve planning processes (Tasmanian Together Goal 15 – Have a system of Government that is accountable to the people and plans for the future at all levels).
2004-05 MAJOR INITIATIVES
As part of the above key strategies, the Department of Justice will focus on the following major initiatives:
• 'Safe at Home – A Criminal Justice Framework for Responding to Family Violence in Tasmania' a whole of government strategy in conjunction with the Department of Police and Public Safety, Department of Health and Human Services and Department of Premier and Cabinet which will provide an integrated and comprehensive pro-arrest, pro-prosecution response to family violence and new Family Violence legislation;
• the implementation of a Sex Offenders Treatment Program in the Prison Service providing serious offenders with access to an intensive pre-release rehabilitation program which includes a range of cognitive-behavioural therapies and relapse prevention strategies;
• continuation of a six year project to redevelop Tasmania's major prison facilities that will lead to the eventual replacement of the existing buildings at Risdon; and
• continuation of the Monetary Penalties Enforcement Project which will improve the collection and enforcement of monetary penalties arising from infringement notices and court orders.
232 Chapter 8: Justice Financial Summary
Table 8.1: Summary Financial Information for the Department of Justice 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 67 676) 75 395) 11.4) Reserved by Law2 8 986) 6 125) (31.8) Other3 1 800) 2 043) 13.5) Other Revenue 11 243) 12 334) 9.7) TOTAL 89 705) 95 897) 6.9)
OPERATING EXPENSES Administration of Justice1 27 878) 31 642) 13.5) Legal Services1 6 203) 7 231) 16.6) Registration Services 728) 1 091) 49.9) Review Services 2 431) 2 592) 6.6) Electoral Services 1 514) 1 682) 11.1) Corrective Services1 31 499) 33 762) 7.2) Other Services 598) 611) 2.2) Consumer Services 2 777) 3 084) 11.1) Industrial Relations Services 3 045) 3 078) 1.1) Grants and Subsidies 52) ....) (100.0) Other 587) 597) 1.7) TOTAL 77 312) 85 370) 10.4)
NET OPERATING RESULT 12 393) 10 527) (15.1)
Notes: 1. The increase in funding relates mainly to funding provided for the 'Safe at Home' initiative, additional funding for Prison operations, additional funding for the continuation of the redevelopment of the monetary penalties enforcement system, additional funding for the Office of the Director of Public Prosecutions and additional salary indexation following the recent State Service Wage Agreement. 2. The decrease relates to a reclassification of the Criminal Injuries Compensation Fund Account from Reserved by Law to Annual Appropriation. 3. This amount relates to a section 8A(2) of the Public Account Act 1986 carry forward for the Prison Infrastructure Redevelopment project.
Chapter 8: Justice 233 DETAILED OUTPUT GROUP 2004-05 BUDGET INFORMATION
The individual Outputs of the Department of Justice are provided under the following Output Groups:
Output Group 1 Administration of Justice;
Output Group 2 Legal Services;
Output Group 3 Registration Services;
Output Group 4 Review Services;
Output Group 5 Electoral Services;
Output Group 6 Corrective Services;
Output Group 7 Other Services;
Output Group 8 Consumer Services; and
Output Group 9 Industrial Relations Services
Output Group 1: Administration of Justice Description
This Output Group provides a range of judicial services to the public through the Supreme and Magisterial Courts as well as coronial services, assistance and compensation for victims of crime, Legal Aid, the Mental Health Review Tribunal, the Guardianship and Administration Board and the enforcement of monetary penalties.
The aim of these services is the resolution of civil disputes and determination of criminal matters in a manner that is just, timely, and cost effective for the parties involved.
The Supreme Court is the highest court in the State, with responsibility for both civil and criminal matters. The Supreme Court has unlimited jurisdiction in criminal and civil matters except where legislation, either Commonwealth or State, provides otherwise. The Full Court and Court of Criminal Appeal hear appeals from single judges.
The Supreme Court is also a court of review from the Magistrates Court and the majority of tribunals that exercise specialist jurisdiction. The Court has jurisdiction to review decisions and hear applications under a wide range of statutory provisions. The Supreme Court also deals with probate and admiralty matters.
The Supreme Court registries are located in Hobart, Launceston and Burnie.
Magistrates in Courts of Petty Sessions hear and determine simple offences, crimes triable summarily under State and Commonwealth legislation, breaches of duty, and applications under various State and Commonwealth statutes, and exercise a wide range of appellate, review and licensing functions. Magistrates also hear simple and indictable offences in the Youth Justice Division as well as exercising child protection and welfare responsibilities under various Acts.
234 Chapter 8: Justice Magistrates in the Civil Division hear and determine civil matters to a value of $20 000 (or an unlimited amount with the consent of the parties). This jurisdiction now includes claims previously treated separately as Small Claims.
Magistrates also sit as Coroners to conduct inquests into sudden deaths, fires and explosions and as chairpersons of various statutory tribunals, such as the Anti-Discrimination Tribunal, the Motor Accidents Compensation Tribunal, the Police Disciplinary Tribunal, the Workplace Health and Safety Tribunal and the Mining Division.
The Magistrates Court sits on a permanent basis in four cities in Tasmania: Hobart, Launceston, Devonport and Burnie. Magistrates also sit in 18 country courts on a regular circuit basis.
The Fines Collection and Enforcement Unit is responsible for collection and enforcement of monetary penalties imposed by courts and other authorities and is responsible for ensuring the integrity of orders for payment of fines is maintained. The Unit utilises Service Tasmania shops, telephone (interactive voice response) and Internet services for clients to make payments. The various payment channels provide for collection of maximum revenue. Warrants of arrest or commitment are issued to enforce overdue fines.
The Victims' Assistance Unit coordinates the services provided by the Department to victims of crime. Services include the administration of the Criminal Injuries Compensation Scheme and the funding of the Victims of Crime (Response and Referral) Service to ensure victims have the opportunity to recover, as fully as possible, from experiences related to the committing of crime, and to enhance the potential for them to be involved productively in the criminal justice process.
The Criminal Injuries Compensation Commissioners are responsible for determining the level of compensation to be granted to victims who have suffered injuries as a result of criminal acts.
The provision of legal assistance to those persons who would be considered disadvantaged if they were not granted legal representation is achieved through the Legal Aid Commission of Tasmania. The Commission operates under State legislation and delivers services in accordance with a Commonwealth-State agreement for Commonwealth funded matters.
Decisions by the Mental Health Tribunal and the Guardianship and Administration Board are provided in accordance with the Mental Health Act 1996 and the Guardianship and Administration Act 1995, respectively.
The Mental Health Tribunal reviews treatment, hospital and restriction orders made under the Mental Health Act.
The Guardianship and Administration Board investigates applications, appoints and reviews the appointment of guardians, administrators and enduring guardians, provides consent for medical and dental procedures, orders the making of statutory wills and the review of enduring powers of attorney for persons with a disability, pursuant to the provisions of the Guardianship and Administration Act, the Wills Act 1992 and the Powers of Attorney Act 2000 respectively.
The Public Guardian conducts investigations of neglect and abuse and acts as guardian when appointed by the Guardianship and Administration Board, promotes the rights and dignity of persons with a disability and fosters the provision of services and facilities for those persons.
Chapter 8: Justice 235 Table 8.2: Summary Financial Information - Output Group 1 2003-04) 2004-05) Administration of Justice Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 16 185) 22 144) 36.8) Reserved by Law1 7 887) 4 839) (38.6) Sales of Goods and Services 3 571) 4 113) 15.2) TOTAL 27 643) 31 096) 12.5)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 13 489) 15 370) 13.9) Other Employee Related Expenses 949) 965) 1.7) Superannuation 1 122) 1 341) 19.5) Depreciation and Amortisation 400) 338) (15.5) Grants and Transfer Payments 7 066) 7 066) ....) Supplies and Consumables Consultants 106) 106) ....) Maintenance and Property Services2 1 427) 1 935) 35.6) Communications 278) 278) ....) Information Technology3 460) 690) 50.0) Travel and Transport 332) 332) ....) Advertising and Promotion 11) 11) ....) Other Supplies and Consumables3 2 238) 3 210) 43.4) TOTAL 27 878) 31 642) 13.5)
EXPENSE BY OUTPUT 1.1 Supreme Court Services 5 853) 6 539) 11.7) 1.2 Magisterial Court Services3 8 308) 10 054) 21.0) 1.3 Enforcement of Monetary Penalties3 1 569) 2 554) 62.8) 1.4 Support and Compensation for Victims of Crime and Others4 3 991) 4 413) 10.6) 1.5 Legal Aid 7 057) 6 975) (1.2) 1.6 Mental Health Review and Guardianship Board Decisions 1 100) 1 107) 0.6) TOTAL 27 878) 31 642) 13.5)
Notes: 1. This change relates to a reclassification of the Criminal Injuries Compensation Fund Account from Reserved by Law to Annual Appropriation. 2. The increase in expenditure relates to funding provided through the CIP-EM for upgrading Supreme Court security statewide. 3. The increase in expenditure relates to additional funding provided for the 'Safe at Home' initiative and additional funding for the continuation of the redevelopment of the monetary penalties enforcement system. 4. The increase in expenditure relates to additional funding provided for the Victims of Crime counselling service.
236 Chapter 8: Justice Major Issues and Initiatives for 2004-05
As part of the Department's key strategies, the Department of Justice will focus on the following major initiatives for this Output Group:
• 'Safe at Home' – A Criminal Justice Framework for Responding to Family Violence in Tasmania; and
• continuation of the Monetary Penalties Enforcement Project.
Table 8.3: Performance Information – Output Group 1 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Proportion of Supreme Court criminal cases finalised within six months % 64 59 60 60 Proportion of Magistrates Court criminal cases finalised within six months1 % 75 79 95 95 Proportion of defended Supreme Court civil cases finalised within twelve months % 59 28 60 60 Proportion of defended Magistrates Court civil cases finalised within twelve months2 % 97 55 99 99 Supreme Court Criminal cases lodged Number 634 573 550 550 Magistrates Court Criminal cases lodged Number 53 541 55 775 65 000 65 000 Supreme Court Civil cases lodged Number 1 975 1 708 1 600 1 600 Magistrates Court Civil cases lodged Number 14 186 12 722 13 000 13 000 Expenditure per Supreme Court criminal case finalised $ 6 873 5 392 7 000 7 000 Expenditure per Magistrates Court criminal case finalised $ 128 n.a. 100 100 Expenditure per Supreme Court civil case finalised $ 1 498 n.a. 1 500 1 500 Expenditure per Magistrates Court civil case finalised $ 54 n.a. 82 82 Fine Collection Rate % 69 61 67 67 Fines and Infringement Notices imposed Number 169 794 195 009 184 000 184 000
Notes: 1. The target of 95 per cent is based on the target identified by all States as part of the Report on Government Services. The introduction of the CRIMES court management system in the Magistrates Court has enabled the Magistrates Court to more accurately and regularly monitor performance against this target. In 2004, the Court will be actively identifying and pursuing strategies to achieve this national target. 2. The counting rules used by the Report on Government Services for the 2004 report were changed to 'deem' cases finalised if no activity occurs for 12 months. The date of finalisation is taken as 12 months since the last activity on the file. This change has had a substantial impact on finalisations in the civil jurisdiction.
Chapter 8: Justice 237 Performance Information Comments
The performance assessment for this Output Group focuses on the timeliness of the resolution of disputes, the demand placed on the courts, the cost efficiency of the dispute resolution process and the effectiveness of the fine collection and enforcement process.
These performance measures should be treated as indicative rather than definitive. Courts do not have total control over the process for resolving disputes and consequently other parties may introduce delays.
The timeliness of the resolution of disputes is of interest to all parties involved, and the achievement of an acceptable minimum level of delay is a basic goal.
In criminal jurisdictions, timeliness is defined as the elapsed time from date of lodgement at the court to the last date of court proceedings, for all cases that were finalised in the financial year.
In civil jurisdictions, timeliness is defined as the elapsed time from date of lodgement at the court to date of finalisation, for all defended matters that were finalised in the financial year and notified to the Court.
For criminal jurisdictions, the measure is presented as the percentage of cases finalised within six months of the date of lodgement and the average elapsed time for cases finalised. Six months is the standard used by the Steering Committee for the Review of Commonwealth-State Service Provision in the Report on Government Services. For civil jurisdictions, the standard is 12 months.
Quantity measures for these outputs are a measure of demand for these services. The actions of the outputs have little impact on the demand for their services
A measure of the efficiency of the delivery of court services is the expenditure per case. This measure depends on the scope of activities included. The figures provided here include the direct expenditure under the Courts' Outputs, the corporate overheads allocated to the Output, an allowance for depreciation of buildings and provision for the notional employer contribution to the Judges' Superannuation Scheme. The measure does not include other government expenditure on the administration of justice such as legal aid, victims of crime or prosecution services.
Expenditure on individual cases may vary widely, depending on the complexity of the case and whether the case is defended. In the Magistrates Court, a significant proportion of cases are minor traffic matters that require very little court time.
In the civil jurisdiction, the majority of matters do not require any direct court involvement as the parties concerned resolve the dispute following lodgement at court. For this reason, the cost per case is related to only those matters that are listed for trial.
Output Group 2: Legal Services Description
This Output Group relates to the provision of various legal services and advice to the Government, including legal policy advice. The aim of this Output Group is the protection of the Government's legal interests.
The production of the Outputs in this Group is achieved through Crown Law, which includes the Office of the Solicitor-General, the Office of the Crown Solicitor and the Office of the Director of Public Prosecutions, and the Department's Office of Legislation Development and Review.
238 Chapter 8: Justice The Solicitor-General is an independent statutory officer who is responsible for the provision of legal advice to Ministers, departments and other government instrumentalities, while also undertaking Constitutional litigation on behalf of the Crown. The Department's function is to provide resources to enable the Solicitor-General's statutory functions to be performed.
The Office of the Crown Solicitor provides commercial and conveyancing services to the Government including property acquisition and disposal, preparation of security documentation on behalf of departments and preparation of commercial agreements including leases and contracts. In addition, the Office administers Crown copyright and other aspects of intellectual property of the Crown and provides strategic assistance to Government Business Enterprises, State-owned Companies and Tasmanian Public Finance Corporations in relation to international borrowing programs.
The Office of the Director of Public Prosecutions is responsible for the conduct of all criminal prosecutions on indictment in the Criminal Court. The Office also provides representation to most departments in the prosecution of regulatory offences, and conducts appeals from the Magistrates Court to the Supreme Court. The Office of the Director of Public Prosecutions also provides representation for Tribunal or Board hearings involving departments, and conducts all civil litigation on behalf of the State and its agencies. This litigation involves not only personal injuries and workers' compensation claims against the Government and its departments, but also claims involving compensation for acquisition, common law damages and contractual disputes.
The Office of Legislation Development and Review provides policy advice and research services to the Attorney-General and the Government to assist in formulating new policies and developing new legislation, assists the Attorney-General in the discharge of parliamentary, legal and ministerial duties, reviews laws to ensure they are relevant to contemporary needs, assists other agencies on legislative issues and advises the Attorney-General on Commonwealth/State ministerial meetings.
Chapter 8: Justice 239 Table 8.4: Summary Financial Information - Output Group 2 2003-04) 2004-05) Legal Services Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 3 273) 4 009) 22.5) Reserved by Law 534) 581) 8.8) Sales of Goods and Services 2 616) 2 716) 3.8) TOTAL 6 423) 7 306) 13.7)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 4 063) 4 831) 18.9) Other Employee Related Expenses 349) 388) 11.2) Superannuation 398) 463) 16.3) Depreciation and Amortisation 36) 32) (11.1) Grants and Transfer Payments 4) 4) ....) Supplies and Consumables Consultants 29) 29) ....) Maintenance and Property Services 544) 544) ....) Communications 86) 86) ....) Information Technology 253) 253) ....) Travel and Transport 129) 129) ....) Advertising and Promotion 30) 30) ....) Other Supplies and Consumables 282) 442) 56.7) TOTAL 6 203) 7 231) 16.6)
EXPENSE BY OUTPUT 2.1 Crown Law1 5 654) 6 669) 18.0) 2.2 Legal Policy Advice and Law Reform 549) 562) 2.4) TOTAL 6 203) 7 231) 16.6)
Note: 1. The increase in expenditure relates to additional funding provided to the Office of the Director of Public Prosecutions.
Major Issues and Initiatives for 2004-05
Additional funding has been provided to the Office of the Director of Public Prosecutions to cover peak workloads over the next two years, especially in the area of sexual offences prosecutions.
240 Chapter 8: Justice Table 8.5: Performance Information – Output Group 2 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Advisings – Solicitor-General Number 1 430 1219 1 400 1 400 DPP – Criminal- Cases presented Number 462 616 540 540 DPP – Civil – Files closed Number 340 429 410 410 Chargeable Time – Office of the Crown Solicitor % 60 59 60 60 Chargeable time - DPP (Civil) % 60 50 60 60
Performance Information Comments
The performance assessment for this Output Group focuses on the demand for the Output Group's services.
Output Group 3: Registration Services Description
This Output Group involves the registration, maintenance and dissemination of various forms of statutory information. The Registry of Births, Deaths and Marriages provide these services. The Government provides the services to the community to protect the rights of individuals and organisations, including the right to a unique identity.
Chapter 8: Justice 241 Table 8.6: Summary Financial Information - Output Group 3 2003-04) 2004-05) Registration Services Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 697) 786) 12.8) Sales of Goods and Services1 39) 300) 669.2) TOTAL 736) 1 086) 47.6)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 396) 473) 19.4) Other Employee Related Expenses 28) 29) 3.6) Superannuation 37) 36) (2.7) Depreciation and Amortisation 1) 1) ....) Supplies and Consumables Consultants 7) 7) ....) Maintenance and Property Services 149) 149) ....) Communications 30) 30) ....) Information Technology 33) 33) ....) Travel and Transport 4) 4) ....) Advertising and Promotion 2) 2) ....) Other Supplies and Consumables1 41) 327) 697.6) TOTAL 728) 1 091) 49.9)
EXPENSE BY OUTPUT 3.1 Births Deaths and Marriages 728) 1 091) 49.9) TOTAL 728) 1 091) 49.9)
Note: 1. The increase relates to reclassification of revenue and expenditure from the Special Deposits and Trust Fund.
Major Issues and Initiatives for 2004-05
This Output Group will, during the coming year, continue to provide the services described above, and in particular, will administer the first full year's operation of the register established under the Relationship Act 2003.
242 Chapter 8: Justice Table 8.7: Performance Information – Output Group 3 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Transactions Processed Number 46 989 46 995 48 000 48 000 Unit Cost per Transaction $ 14.41 14.72 14.50 14.50 Registration within 3 days of receipt % 90 90 90 90 Certificates within 3 days of receipt % 95 95 95 95
Performance Information Comments
The performance assessment for this Output Group focuses on the demand for, efficiency and timeliness of this Output Group's service delivery.
Unit cost per transaction represents the aggregation of a wide range of transaction types. These include: the registration of and provision of certificates for births, deaths and marriages; changes of name; paternity acknowledgment; legitimations; adoptions; and the performance of civil marriages.
The cost of each type of transaction may vary significantly from the aggregate measure. The unit cost per transaction measure is most susceptible to variations in demand, as the Output Group has a high proportion of fixed costs.
Output Group 4: Review Services Description
This Output Group provides review services to the public and government employees in relation to government administration, health services and electricity services. The Ombudsman, the Health Complaints Commissioner, the Electricity Ombudsman, the Freedom of Information Unit and the Anti-Discrimination Commissioner provide these Outputs.
The services provided by these offices contribute to the resolution of complaints about administrative actions of government, actions of health service and electricity providers, and cases of discrimination.
Under the Ombudsman Act 1978, the public is able to refer complaints alleging defective administration by a State Government department, Local Government or a specified public authority to the Ombudsman for investigation and resolution.
Under the Freedom of Information Act 1991, the public may apply to the Ombudsman for a review of decisions by State Government departments, Local Government and specified public authorities to refuse provision of information under Freedom of Information.
The Freedom of Information Advisory Unit provides assistance and advice to agencies in administering the Freedom of Information Act.
Under the Health Complaints Act 1995, the public is able to refer complaints related to the provision of all traditional and non-traditional health services to the Health Complaints Commissioner for investigation, conciliation and resolution.
Chapter 8: Justice 243 Under the Electricity Ombudsman Act 1998, electricity customers are able to refer complaints against electricity entities to the Electricity Ombudsman, who is empowered to make determinations and awards.
The Anti-Discrimination Act 1998 promotes human rights for all Tasmanians, building on equal opportunity and discrimination legislation from other jurisdictions. It incorporates many new provisions, making it the most advanced Australian human rights law.
The Anti-Discrimination Commissioner receives claims alleging discrimination and prohibited conduct, investigates and conciliates them, and refers unresolved claims to the Anti-Discrimination Tribunal for public hearing. Applications for exemption from the Act are granted or rejected by the Commissioner. Anti-Discrimination Standards for guidance in all sectors are a significant part of the Commission's work, alongside a training, community liaison and education program.
244 Chapter 8: Justice Table 8.8: Summary Financial Information - Output Group 4 2003-04) 2004-05) Review Services Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 1 962) 1 985) 1.2) Other1 ....) 40) ....) Grants 14) 14) ....) Sales of Goods and Services 490) 540) 10.2) TOTAL 2 466) 2 579) 4.6)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 1 554) 1 762) 13.4) Other Employee Related Expenses 138) 142) 2.9) Superannuation 110) 109) (0.9) Supplies and Consumables Consultants 42) 42) ....) Maintenance and Property Services 240) 240) ....) Communications 63) 63) ....) Information Technology 47) 47) ....) Travel and Transport 65) 65) ....) Advertising and Promotion 27) 27) ....) Other Supplies and Consumables 145) 95) (34.5) TOTAL 2 431) 2 592) 6.6)
EXPENSE BY OUTPUT 4.1 Decisions on Complaints Referred to the Ombudsman and Health Complaints Commissioner and Freedom of Information 1 634) 1 747) 6.9) 4.2 Anti-Discrimination Commission 797) 845) 6.0) TOTAL 2 431) 2 592) 6.6)
Note: 1. This amount relates to a section 8A(2) of the Public Account Act 1986 carry forward for the establishment of the Energy Ombudsman.
Major Issues and Initiatives for 2004-05
This Output Group will, during the coming year, continue to provide the services described above. A major initiative for the Office of the Ombudsman for 2004-05 will be the establishment of the Energy Ombudsman, which represents an expansion of the role of the Electricity Ombudsman in light of Tasmania commencing use of natural gas.
Chapter 8: Justice 245 Table 8.9: Performance Information – Output Group 4 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Percentage of all agency FOI decisions overturned by Ombudsman (TT)1 % 3.6 2.0 <5 <5 Ombudsman – Complaints Finalised Number 736 770 750 750 Ombudsman – Average Cost per Resolved Complaint $ 968 1 001 1 050 1 050 Complaints to Ombudsman resolved in less than 3 months % 66 66 70 70 Health Complaints assessed within statutory period of 45 days % 66 41 70 70 Number of complaints to the Tasmanian Anti-Discrimination Commission (TT) 2 Number 239 255 <240 240
Notes: 1. (TT) denotes that this Performance Information is linked directly to a Tasmania Together benchmark. 2. The increase in 2002-03 includes 48 complaints lodged by one person with multiple respondents and on behalf of multiple parties.
Performance Information Comments
The performance assessment for this Output Group focuses on the demand for the services provided and the timeliness of the resolution of complaints and appeals.
The demand for these services, together with the outcomes of the decisions made, are used in respect of Tasmania Together as benchmarks for assessing the community's progress towards: Goal 9 – Foster an inclusive society that acknowledges and respects our multicultural heritage, values diversity and treats everyone with compassion and respect; and Goal 13 – Have a system of government which is open, seeks and listens to people's views and ideas, and uses them in decision-making at all levels.
It is too early to assess the long-term impact of the Tasmanian Office of the Anti-Discrimination Commissioner on discrimination in Tasmania. Experience in other jurisdictions suggests that a significant education effort is required to have an impact on this indicator.
246 Chapter 8: Justice Output Group 5: Electoral Services Description
This Output Group involves the provision of services relating to the holding of State elections and referendums. The Output is provided by the Tasmanian Electoral Office, which provides electoral services to the community that contribute to the protection of the State's robust parliamentary democracy.
The Office conducts:
• House of Assembly elections, by-elections and recounts;
• Legislative Council elections and by-elections;
• Local Government elections, by-elections and recounts;
• State referendums;
• Local Government elector polls;
• the implementation of electoral boundary redistributions;
• Aboriginal Land Council elections;
• other statutory elections;
• semi-government and other elections conducted in the public interest; and
• public electoral information programs.
The Tasmanian Electoral Office and the Australian Electoral Commission jointly manage and maintain the electoral rolls for State and Local Government elections.
The Chief Electoral Officer is a member of the Electoral Council of Australia which oversights electoral and enrolment policy and systems at a national level.
The Chief Electoral Officer is a member of the Legislative Council Redistribution Committee and Tribunal for the determination of Legislative Council electoral boundaries. The Tribunal is also responsible for implementing transition arrangements for redistributions.
Chapter 8: Justice 247 Table 8.10: Summary Financial Information - Output Group 5 2003-04) 2004-05) Electoral Services Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 710) 714) 0.6) Reserved by Law 565) 705) 24.8) Sales of Goods and Services 250) 250) ....) TOTAL 1 525) 1 669) 9.4)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 769) 937) 21.8) Other Employee Related Expenses 76) 77) 1.3) Superannuation 58) 58) ....) Depreciation and Amortisation 7) 6) (14.3) Supplies and Consumables Consultants 3) 3) ....) Maintenance and Property Services 71) 71) ....) Communications 70) 70) ....) Information Technology 64) 64) ....) Travel and Transport 43) 43) ....) Advertising and Promotion 229) 229) ....) Other Supplies and Consumables 124) 124) ....) TOTAL 1 514) 1 682) 11.1)
EXPENSE BY OUTPUT 5.1 Elections and Referendums 1 514) 1 682) 11.1) TOTAL 1 514) 1 682) 11.1)
Major Issues and Initiatives for 2004-05
This Output Group will, during the coming year, continue to provide the services described above.
248 Chapter 8: Justice Table 8.11: Performance Information – Output Group 5 Performance Measure – House of Assembly Elections Unit of measure 1998 2002 2006 Actual Actual Target
House of Assembly Election Participation Rate (TT) % 91.3 89.2 95 House of Assembly Rate of Informal Votes % 3.9 4.9 4.0 Electors on Roll Number 322 754 332 473 325 000 House of Assembly – Election Cost Per Enrolled Elector $ 4.85 5.27 n.a.
Performance Measure – Legislative Council Unit of 2001-02 2002-03 2003-04 2004-05 Elections measure Actual Actual Target Target
Legislative Council Election Participation Rate % 87 87 89 89 Legislative Council Rate of Informal Votes % 3.9 4.7 3.7 3.7 Electors on Roll1 Number 66 506 66 366 44 000 66 000 Legislative Council – Election Cost Per Enrolled Elector $ 5.23 5.68 5.60 5.60 Roll Maintenance Cost per Elector $ 0.56 0.61 0.77 0.65
Note: 1. These figures represent the number of electors on the rolls for the seats up for election in the respective years. In previous years these figures represented the total number of electors for all seats.
Performance Information Comments
The performance assessment for this Output Group focuses on the effectiveness of the electoral process, the efficiency of the electoral process and the efficiency of the maintenance of the electoral roll.
Tasmania Together identified the percentage of effective votes in State elections as an indicator of the community's awareness and participation in the electoral process under Goal 13 – Have a system of government that is open, seeks and listens to people's views and ideas, and uses them in decision-making at all levels.
The Electoral Office breaks down effective votes by election (House of Assembly and Legislative Council) and by reporting separately on participation rate (ie proportion of enrolled voters who lodged a formal vote), and whether voters cast their votes incorrectly (ie informal votes as a proportion of the total votes cast).
Chapter 8: Justice 249 Output Group 6: Corrective Services Description
This Output Group encompasses the Prison Service and Community Corrections. The objective of the Prison Service is to contribute to a safer Tasmania by ensuring the safe containment of inmates and providing them with opportunities for rehabilitation and personal development.
Prison services are provided through institutions, prisons and remand centres, located at Risdon, Hobart, Hayes and Launceston. These institutions provide care and custody, at various levels of security, for prisoners, people on remand and some people detained under the Criminal Justice (Mental Impairment) Act 1999. In Hobart and Launceston, the remand centres also hold people in police custody. The Prison Service provides secure transport between prisons and some courts.
The Community Corrections Service provides a range of non-custodial sentencing options including community service orders and probation supervision. The Community Corrections Service is also responsible for parole supervision, pre-parole reporting to the Parole Board and pre-sentence reporting to the Courts. Provision of these services to the Courts and to the Parole Board is mandated by legislation including the Sentencing Act 1997, the Corrections Act 1997 and miscellaneous acts which include sentencing provisions such as the Criminal Code Act 1924 and the Justices Act 1959.
These services are delivered through offices at Hobart, Clarence, Bridgewater, Launceston, Burnie and Devonport with out-posted offices at Huonville, George Town, Ulverstone and Queenstown.
250 Chapter 8: Justice Table 8.12: Summary Financial Information - Output Group 6 2003-04) 2004-05) Corrective Services Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 24 660) 27 139) 10.1) Grants 86) 86) ....) Sales of Goods and Services 2 844) 2 844) ....) TOTAL 27 590) 30 069) 9.0)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 15 315) 17 189) 12.2) Other Employee Related Expenses 1 895) 1 941) 2.4) Superannuation 1 519) 1 531) 0.8) Depreciation and Amortisation 4 148) 3 504) (15.5) Supplies and Consumables Consultants 93) 93) ....) Maintenance and Property Services 1 430) 1 579) 10.4) Communications 265) 265) ....) Information Technology 357) 339) (5.0) Travel and Transport 352) 352) ....) Advertising and Promotion 6) 6) ....) Other Supplies and Consumables 6 119) 6 963) 13.8) TOTAL 31 499) 33 762) 7.2)
EXPENSE BY OUTPUT 6.1 Prison Service1 28 109) 30 192) 7.4) 6.2 Community Corrective Service 3 390) 3 570) 5.3) TOTAL 31 499) 33 762) 7.2)
Note: 1. The increase in Annual Appropriation relates to additional funding provided to cover increasing operating costs in the prison service and additional funding to cover the first full year operation of the Sex Offenders Treatment Program.
Chapter 8: Justice 251 Major Issues and Initiatives for 2004-05
Throughout 2004-05, the Output Group will address the following issues:
• continuation of a six year project to redevelop Tasmania's major prison facilities that will lead to the eventual replacement of the existing buildings at Risdon;
• the first full year operation of the Sex Offenders Treatment Program; and
• continued delivery of improved prisoner services programs. The programs will focus on addressing the safe and secure containment of prisoners and their needs in relation to personal development and rehabilitation
Table 8.13: Performance Information – Output Group 6 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Return to Corrections within two years % 48 45 46 46 Prison Escape Rate – Secure Perimeter Number per 100 prisoner years 0.0 0.0 0.0 0.0 Prison Escape Rate – Open Perimeter Number per 100 prisoner years 0.0 1.1 <2.0 <2.0 Completion rate for community supervision orders % 89 90 90 90 Daily Average Prison Population Number 386 442 460 460 Daily Average Number of Offenders Supervised in Community1 Number 933 879 960 1 000 Cost per Prisoner Day (2001-02 $) $ 164 159 150 150 Cost per Community Supervised Offender per day (2001-02 $) $ 9.34 10.00 8.20 8.20
Note: 1. The daily average number of offenders supervised in community for 2003-04 is expected to exceed the target of 960 by up to forty offenders per day as a result of changes in sentencing practices by Magistrates. As this change is expected to be ongoing, the target for 2004-05 has been increased.
252 Chapter 8: Justice Performance Information Comments
The performance assessment focuses on the following aspects of the Output Group's performance:
• the effectiveness of the Output Group in reducing recidivism. This is measured by the proportion of offenders who return to corrections within two years. This represents Corrective Services' contribution to the Tasmania Together Benchmark - 2.1.7 Proportion of first offenders convicted again within two years;
• the effectiveness of the Output Group in ensuring the containment of prisoners and the compliance of offenders with community based orders;
• coping with the demand placed on the corrections system; and
• the efficiency of the corrective services system.
Quantity measures for Corrective Services are a measure of demand for these services. The actions of Corrective Services have little impact on the demand for its services
Output Group 7: Other Services Description
This Output Group involves the licensing, inspection, supervision and control of all aspects of the poppy industry from growing, through to manufacture and dispatch from Australia. The cultivation of poppy plants (Papaver Somniferum) is carried out in accordance with provisions of the Poisons Act 1971. The aim of these services is to provide a secure and controlled poppy industry in accordance with the United Nations Single Convention on Narcotic Drugs.
The Poppy Advisory and Control Board provides policy coordination and preparation of advice to the Government on matters of relevance to the poppy industry and liaises with relevant Commonwealth and State Government agencies, private enterprise and growers on matters related to industry development.
Chapter 8: Justice 253 Table 8.14: Summary Financial Information - Output Group 7 2003-04) 2004-05) Other Services Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 607) 607) ....) TOTAL 607) 607) ....)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 342) 354) 3.5) Other Employee Related Expenses 30) 31) 3.3) Superannuation 33) 33) ....) Supplies and Consumables Consultants 5) 5) ....) Maintenance and Property Services 35) 35) ....) Communications 26) 26) ....) Information Technology 4) 4) ....) Travel and Transport 98) 98) ....) Advertising and Promotion 5) 5) ....) Other Supplies and Consumables 20) 20) ....) TOTAL 598) 611) 2.2)
EXPENSE BY OUTPUT 7.1 Supervision of Poppy and Hemp Crops 598) 611) 2.2) TOTAL 598) 611) 2.2)
Major Issues and Initiatives for 2004-05
This Output Group will, during the coming year, continue to provide the services described above.
254 Chapter 8: Justice Table 8.15: Performance Information – Output Group 7 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Number of capsules stolen per hectare sown Number 0.8 1.1 <2.0 <2.0 Hectares sown1 Number 20 284 18 176 15 500 15 500 Cost of Poppy Advisory Control Board per Hectare sown2 $ 28 30 39 39
Notes: 1. A reduction in the international demand for opiate alkaloids coupled with a growth in the stock of alkaloids held by companies is projected to lead to reduced planting by growers in 2003-04. 2. The reduction in the area sown in 2002-03 will not result in a significant reduction in total costs for 2003-04; therefore the cost per hectare is projected to increase.
Performance Information Comments
The performance measure focuses on the effectiveness of the protection of the poppy crops and on the efficiency of the Poppy Advisory and Control Board's supervision and protection activities.
The effectiveness of the protection is a joint responsibility of the Board, growers and Tasmania Police.
Output Group 8: Consumer Services Description
This Output Group provides services to the public and the Government which contribute to the maintenance of a fair, safe and equitable marketplace. The Office of Consumer Affairs and Fair Trading, which includes the Measurement and Standards Branch and the Office of Business Affairs, delivers the services provided under this Output Group.
The Office of Consumer Affairs and Fair Trading provides advice to the Government on legislative and other policy initiatives, provides a business registration process and gives advice and information to the public, including individual business operators, on matters affecting the interests of consumers. The Output Group also enforces product safety standards, participates in national moves towards greater uniformity in standards and legislation between all jurisdictions and produces material to promote the requirements of legislation within the Consumer Affairs and Fair Trading portfolio.
In addition to its responsibilities under the Trade Measurement (Tasmania) Administration Act 1999, the Measurement and Standards Branch is a Verifying Authority under the Commonwealth National Measurement Act 1960 and provides the calibration and traceability of measurements used for technical, scientific, trade, legal and quality assurance purposes.
The Office of Business Affairs registers and provides information relating to business names, incorporated associations, chattel mortgages, limited partnerships, matters registered under The Cooperatives Act 1999 and third party interests in abalone quota licences.
Chapter 8: Justice 255 Table 8.16: Summary Financial Information - Output Group 8 2003-04) 2004-05) Consumer Services Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 2 584) 2 645) 2.4) Sales of Goods and Services1 228) 418) 83.3) TOTAL 2 812) 3 063) 8.9)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 1 519) 1 723) 13.4) Other Employee Related Expenses 139) 154) 10.8) Superannuation 179) 188) 5.0) Depreciation and Amortisation 5) 4) (20.0) Grants and Transfer Payments 15) 15) ....) Supplies and Consumables Consultants 9) 9) ....) Maintenance and Property Services 359) 359) ....) Communications 109) 109) ....) Information Technology 119) 119) ....) Travel and Transport 105) 105) ....) Advertising and Promotion 12) 12) ....) Other Supplies and Consumables 207) 287) 38.6) TOTAL 2 777) 3 084) 11.1)
EXPENSE BY OUTPUT 8.1 Maintenance of a Fair, Safe and Equitable Market Place 2 777) 3 084) 11.1) TOTAL 2 777) 3 084) 11.1)
Note: 1. The increase relates to additional revenue expected from the licensing of security and investigations agents.
Major Issues and Initiatives for 2004-05
This Output Group will, during the coming year, continue to provide the services described above.
256 Chapter 8: Justice Table 8.17: Performance Information – Output Group 8 Unit of 2001-02 2002-03 2002-03 2004-05 Performance Measure measure Actual Actual Target Target
Compliance Actions Number 101 889 99 540 102 000 102 000 Cost per Compliance Action $ 13.12 13.86 13.70 13.70
Performance Information Comments
The performance measures for this Output Group focus on its compliance activities.
Output Group 9: Industrial Relations Services Description
This Output Group covers industrial relations services provided by the Department of Justice.
These services include:
• services provided by the Tasmanian Industrial Commission in accordance with the provisions of the Industrial Relations Act 1984 including the making of awards, approval of industrial agreements and the settling of industrial disputes. These services are available to registered organisations, and employers and employees from the public and private sectors, controlling authorities and the relevant Ministers. Former employees may also notify disputes regarding the termination of their employment, severance pay in cases of redundancy and alleged award or agreement breaches by a former employer;
• hearing and determining disputes by the Tasmanian Industrial Commission pursuant to the provisions of the Long Service Leave (State Employees) Act 1994 and the Long Service Leave Act 1976;
• approval of enterprise agreements as defined under Part IV A of the Industrial Relations Act; and
• support for the Workers' Rehabilitation and Compensation Tribunal, which makes decisions on matters brought before it by employers and employees.
Chapter 8: Justice 257 Table 8.18: Summary Financial Information - Output Group 9 2003-04) 2004-05) Industrial Relations Services Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 2 032) 2 001) (1.5) Sales of Goods and Services 1 053) 1 053) ....) TOTAL 3 085) 3 054) (1.0)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 1 740) 1 777) 2.1) Other Employee Related Expenses 200) 200) ....) Superannuation 165) 161) (2.4) Depreciation and Amortisation 5) 5) ....) Supplies and Consumables Consultants 12) 12) ....) Maintenance and Property Services 398) 398) ....) Communications 88) 88) ....) Information Technology 76) 76) ....) Travel and Transport 166) 166) ....) Advertising and Promotion 34) 34) ....) Other Supplies and Consumables 161) 161) ....) TOTAL 3 045) 3 078) 1.1)
EXPENSE BY OUTPUT 9.1 Services of the Tasmanian Industrial Commission 1 907) 1 915) 0.4) 9.2 Workers' Rehabilitation and Compensation Tribunal Decisions 1 138) 1 163) 2.2) TOTAL 3 045) 3 078) 1.1)
Major Issues and Initiatives for 2004-05
This Output Group will, during the coming year, continue to provide the services described above. Performance Information Comments
Performance indicators for this Output Group are currently under development.
258 Chapter 8: Justice Administered Items Grants and Subsidies
The Department of Justice administers a number of Trust Accounts that record transactions relating to funds held on behalf of third parties. Table 8.19 summarises Grants and Subsidies paid to third parties.
Table 8.19: Grants and Subsidies Financial Summary 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) REVENUE Revenue from Government Other Revenue 52) ....) (100.0) TOTAL 52) ....) (100.0)
EXPENSES Criminal Injuries Compensation Act 1976 Victims Fund1 2) ....) (100.0) Residential Tenancy Code2 50) ....) (100.0) TOTAL 52) ....) (100.0)
Notes: 1. The decrease relates to the Criminal Injuries Compensation Act 1976 Victims Fund being designated a true trust account. 2. The decrease relates to the Residential Tenancy Code being reclassified as a true trust account.
Chapter 8: Justice 259 Revenue Collected on Behalf of the Consolidated Fund
Revenue collected on behalf of the Consolidated Fund is shown in Table 8.20.
Table 8.20: Revenue Collected on Behalf of the Consolidated Fund 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) REVENUE Fines and Regulatory Fees 8 500) 8 500) ....) Sales of Goods and Services 8 105) 9 652) 19.0) TOTAL REVENUE 16 605) 18 152) 9.3)
Transfers to the Consolidated Fund Consumer Affairs Office Fees and Recoveries 2 673) 2 847) 6.5) Fines 8 500) 8 500) ....) Magisterial Courts Fees and Recoveries 567) 605) 6.7) Other Sales of Services 75) 417) 456.0) Registrar-General Fees and Recoveries 746) 1 122) 50.4) Reimbursement for Business Affairs 3 507) 3 591) 2.3) Sales of Goods ....) 520) ....) Supreme Court Fees and Recoveries 537) 550) 2.4) TOTAL TRANSFERS TO THE CONSOLIDATED FUND 16 605) 18 152) 9.3)
Consumer Affairs Office Fees and Recoveries The Office of Consumer Affairs and Fair Trading collects fees for the provision of regulatory services provided by the Measurement and Standards Branch, in accordance with the Weights and Measures Act 1934 and the National Measurement Act 1960. The Office of Business Affairs imposes fees for services in respect of incorporated associations, business names and chattel mortgages. In addition, the Commonwealth reimburses the Department for revenue foregone in respect of company registrations. Film Censorship Reimbursement The Department receives a share of fees collected by the Commonwealth Film Censor. Magisterial and Supreme Court Fees and Recoveries Fees are applied for various functions performed by both the Magistrates and Supreme Courts. Revenue in the Supreme Court includes fees for services provided by the Sheriff's Office and probate and transcribing fees. In the Magistrates Court, fees are applied for services provided by the Civil Division and the Courts of Petty Sessions. Registrar-General Fees and Recoveries The Registrar-General collects fees for services provided by the Registry of Births, Deaths and Marriages.
260 Chapter 8: Justice Capital Investment Program
Funding for the Prison Infrastructure Redevelopment Program has been provided in 2004-05 in line with the Program's projected cash flow.
As well, funding has been provided for the continuation of essential and statutory maintenance of building services programs, mainly for court buildings in Hobart, Launceston, Devonport and Burnie.
Table 8.21: Capital Investment Program1 2004-05) Budget) $'000) Continuing Projects Building Services Maintenance 94) Prisons Infrastructure Redevelopment Program 15 274)
TOTAL CAPITAL INVESTMENT PROGRAM 15 368)
Note: 1. For more information regarding the Capital Investment Program, see Chapter 6 in Budget Paper No 1 Budget Overview 2004-05.
Chapter 8: Justice 261 DETAILED BUDGET STATEMENTS
Table 8.22: Output Group Expense Summary for the Department of Justice 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) Output Group 1 - Administration of Justice 1.1 Supreme Court Services 5 853) 6 539) 11.7) 1.2 Magisterial Court Services 8 308) 10 054) 21.0) 1.3 Enforcement of Monetary Penalties 1 569) 2 554) 62.8) 1.4 Support and Compensation for Victims of Crime and Others 3 991) 4 413) 10.6) 1.5 Legal Aid 7 057) 6 975) (1.2) 1.6 Mental Health Review and Guardianship Board Decisions 1 100) 1 107) 0.6) 27 878) 31 642) 13.5) Output Group 2 - Legal Services 2.1 Crown Law 5 654) 6 669) 18.0) 2.2 Legal Policy Advice and Law Reform 549) 562) 2.4) 6 203) 7 231) 16.6) Output Group 3 - Registration Services 3.1 Births Deaths and Marriages 728) 1 091) 49.9) 728) 1 091) 49.9) Output Group 4 - Review Services 4.1 Decisions on Complaints Referred to the Ombudsman and Health Complaints Commissioner and Freedom of Information 1 634) 1 747) 6.9) 4.2 Anti-Discrimination Commission 797) 845) 6.0) 2 431) 2 592) 6.6) Output Group 5 - Electoral Services 5.1 Elections and Referendums 1 514) 1 682) 11.1) 1 514) 1 682) 11.1) Output Group 6 - Corrective Services 6.1 Prison Service 28 109) 30 192) 7.4) 6.2 Community Corrective Service 3 390) 3 570) 5.3) 31 499) 33 762) 7.2) Output Group 7 - Other Services 7.1 Supervision of Poppy and Hemp Crops 598) 611) 2.2) 598) 611) 2.2) Output Group 8 - Consumer Services 8.1 Maintenance of a Fair, Safe and Equitable Market Place 2 777) 3 084) 11.1) 2 777) 3 084) 11.1)
262 Chapter 8: Justice Table 8.22: Output Group Expense Summary for the Department of Justice (continued) 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) Output Group 9 - Industrial Relations Services 9.1 Services of the Tasmanian Industrial Commission 1 907) 1 915) 0.4) 9.2 Workers' Rehabilitation and Compensation Tribunal Decisions 1 138) 1 163) 2.2) 3 045) 3 078) 1.1)
Grants and Subsidies 52) ....) (100.0)
Other 587) 597) 1.7)
TOTAL AGENCY 77 312) 85 370) 10.4)
Chapter 8: Justice 263 Table 8.23: Statement of Financial Performance for the Department of Justice 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 67 676) 75 395) 11.4) Reserved by Law 8 986) 6 125) (31.9) Other 1 800) 2 043) 13.5) Grants 100) 100) ....) Sales of Goods and Services 11 093) 12 234) 10.2) TOTAL 89 655) 95 897) 6.9)
OPERATING EXPENSES Employee Entitlements 42 984) 48 346) 12.4) Superannuation 3 621) 3 920) 8.2) Depreciation and Amortisation 4 602) 3 890) (15.5) Grants and Transfer Payments 7 085) 7 085) ....) Supplies and Consumables 18 968) 22 129) 16.6) TOTAL 77 260) 85 370) 10.4)
NET OPERATING RESULT 12 395) 10 527) (15.1)
ADMINISTERED ITEMS
REVENUE Fines and Regulatory Fees 8 500) 8 500) ....) Sales of Goods and Services 8 155) 9 652) 18.3) TOTAL 16 655) 18 152) 8.9)
EXPENSES Grants and Subsidies Supplies and Consumables 52) ....) (100.0) Total Grants and Subsidies 52) ....) (100.0) Transfer to the Consolidated Fund 16 605) 18 152) 9.3) TOTAL 16 657) 18 152) 8.9)
264 Chapter 8: Justice
Table 8.24: Statement of Financial Position as at 30 June for the Department of Justice 2004) 2005) Budget) Budget) Variation) $'000) $'000) %) CURRENT ASSETS Cash 2 100) 4 253) 102.5) Receivables 1 780) 728) (59.2) Other 251) 318) 26.6) TOTAL 4 131) 5 299) 28.2)
NON-CURRENT ASSETS Land and Buildings 74 363) 86 698) 16.5) Plant and Equipment 1 344) 1 942) 44.4) Other 1 207) ....) (100.0) TOTAL 76 914) 88 640) 15.2)
TOTAL ASSETS 81 045) 93 939) 15.9)
CURRENT LIABILITIES Payables 1 021) 1 510) 47.8) Employee Entitlements 3 965) 5 685) 43.3) TOTAL 4 986) 7 195) 44.3)
NON-CURRENT LIABILITIES Employee Entitlements 6 474) 5 324) (17.8) TOTAL 6 474) 5 324) (17.8)
TOTAL LIABILITIES 11 460) 12 519) 9.2)
NET ASSETS 69 585) 81 420) 17.0)
Chapter 8: Justice 265
Table 8.24: Statement of Financial Position as at 30 June for the Department of Justice (continued) 2004) 2005) Budget) Budget) Variation) $'000) $'000) % ADMINISTERED ITEMS
CURRENT ASSETS Cash 428) 860) 100.9) Receivables 7 838) 11 212) 43.0) TOTAL 8 266) 12 072) 46.0)
NON-CURRENT ASSETS TOTAL ....) ....) ....)
TOTAL ASSETS 8 266) 12 072) 46.0)
CURRENT LIABILITIES Payables 673) 81) (88.0) TOTAL 673) 81) (88.0)
NON-CURRENT LIABILITIES Payables 12) ....) (100.0) Tax Liabilities 160) 160) ....) TOTAL 172) 160) (7.0)
TOTAL LIABILITIES 845) 241) (71.5)
NET ASSETS 7 421) 11 831) 59.4)
266 Chapter 8: Justice Table 8.25: Statement of Cash Flows for the Department of Justice 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) CASH FLOWS FROM OPERATING ACTIVITIES Receipts Revenue from Government Appropriation 67 676) 75 395) 11.4) Reserved By Law 8 986) 6 125) (31.9) Grants 100) 100) ....) Sales of Goods and Services 10 793) 11 934) 10.5) Payments Employee Entitlements (43 870) (47 989) 9.3) Superannuation (3 621) (3 920) 8.2) Grants and Transfer Payments (7 085) (7 085) ....) Supplies and Consumables (18 668) (21 829) 16.9) NET CASH FROM/(USED IN) OPERATING ACTIVITIES 14 311) 12 731) (11.1)
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of Fixed Assets (16 172) (14 774) (8.7) NET CASH FROM/(USED IN) INVESTING ACTIVITIES (16 172) (14 774) (8.7)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held (1 861) (2 043) 9.7)
Cash at the Beginning of Reporting Period 3 963) 6 296) 58.8)
Cash at the End of Reporting Period 2 102) 4 253) 102.3)
Chapter 8: Justice 267 Table 8.25: Statement of Cash Flows for the Department of Justice (continued) 2003-04) 2004-05) Budget Budget) Variation) $'000) $'000) %) ADMINISTERED ITEMS
CASH FLOWS FROM OPERATING ACTIVITIES Receipts Fines and Regulatory Fees 8 500) 8 500) ....) Sales of Goods and Services 8 155) 9 652) 18.3) GST Receipts 1 700) 1 700) ....) Payments Supplies and Consumables (52) ....) (100.0) Transfers to the Consolidated Fund (16 605) (18 152) 9.3) GST Payments (1 700) (1 700) ....) NET CASH FROM/(USED IN) OPERATING ACTIVITIES (2) ....) (100.0)
CASH FLOWS FROM INVESTING ACTIVITIES NET CASH FROM/(USED IN) INVESTING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held (2) ....) (100.0)
Cash at the Beginning of Reporting Period 428) 860) 100.9)
Cash at the End of Reporting Period 426) 860) 101.8)
268 Chapter 8: Justice Table 8.26: Reconciliation of Operating Expenses to Consolidated Fund Appropriation 2003-04) 2004-05) Budget) Budget) $'000) $'000)
Total Operating Expenses 77 312 85 370)
Adjustments for non-cash items Depreciation (4 602) (3 890) Employee Entitlements 886 (357) Supplies and Consumables (300) (300) Total Cash Cost of Outputs 73 739 80 823
Other funding sources (12 806) (14 077) Purchase of Capital Items 16 172 14 774
Total Consolidated Fund Appropriation 76 662) 81 520)
Chapter 8: Justice 269 CONVENTIONS AND GLOSSARY OF TERMS
CONVENTIONS
Figures in tables have been rounded. Discrepancies in tables between totals and sums of component items reflect rounding. Percentage changes in all tables are based on the underlying unrounded amounts.
The notation for zero or rounded to zero figures is '.…'.
Percentages in excess of 999 per cent are shown as '….'.
GLOSSARY OF TERMS Accrual Accounting
Accrual accounting recognises revenue and expenditure at the time it is earned or incurred, rather than when money is actually received or paid. Advances
Repayable, interest-bearing loans often provided on concessional terms. Appropriation
An amount which may be expended from the Consolidated Fund under the authority of an Act of Parliament. Auditor-General
A statutory office, established under the Financial Management and Audit Act 1990, responsible for the independent review of State financial matters. The Auditor-General is required to report annually to Parliament on the accounts of departments and other public bodies. Benchmarking
The process of comparing the performance of Government agencies in producing goods and services with other governments or the private sector. This process enables analysis of the effectiveness and efficiency of the production of Outputs relative to best practice procedures in other jurisdictions and the private sector and, in turn, assists the Government in making decisions on the level and range of Outputs purchased from departments.
270 Conventions and Glossary of Terms Budget Balancing Assistance
Under the transitional arrangements of the Intergovernment Agreement, the shortfall between the revenue from the Goods and Services Tax (GST) distributed to a state or territory and that state or territory's Guaranteed Minimum Amount is referred to as Budget Balancing Assistance, with the amount being provided by the Commonwealth in the form of a grant. Budget Committee
A Cabinet Sub-Committee that is responsible for considering all Budget related matters and making appropriate recommendations to Cabinet. Capital Investment Program
The Capital Investment Program (CIP) comprises major capital investment projects for all on-Budget agencies and is funded through the Works and Services section of the Consolidated Fund. The CIP was introduced to link Government investment in capital and maintenance projects with departmental corporate and asset management plans and specific Government policy objectives and Outputs. Details of projects included in the CIP are provided in Chapter 6 of Budget Paper No 1 Budget Overview 2004-05. Cash Accounting
Cash accounting recognises revenue and expenditure only at the time cash is received or paid. Chain Volume Measures
Whereas constant price estimates measure real changes in various economic statistics by removing the effect of rising prices through an index composed in terms of a constant base year, chain volume measures provide estimates of real change by factoring in changing price relativities from year to year. Chain volume measures have recently replaced constant price estimates as the adjustment mechanism preferred by the Australian Bureau of Statistics for the calculation of real prices. Commonwealth Grants Commission
An independent body established by the Commonwealth Government to advise on the per capita relativities for distributing general revenue grants among the six states and two territories. Community Service Activities (CSAs)
CSAs are non-commercial activities undertaken by State-owned Companies under contract with the Government. To qualify as a CSA, the activity must meet similar identification criteria and net cost conditions as CSOs. Community Service Obligations (CSOs)
CSOs are activities undertaken by a GBE that would not be undertaken if it was a commercial entity operating in the private sector. In this regard, the GBE Act requires that CSOs can only be declared where the function performed, service provided, or concession allowed will result in a net cost to the GBE, is the direct result of a direction given under, or a specific requirement of, an Act of Parliament and would not be performed, provided or allowed if the GBE were a business in the private sector acting in accordance with sound commercial practice.
Conventions and Glossary of Terms 271 Competitive Neutrality
A policy under the Competition Principles Agreement (see National Competition Policy) to prevent any resource allocation distortions arising out of the public ownership of entities engaged in significant business activities. Competitive neutrality aims to ensure that Government businesses do not enjoy any net competitive advantage simply as a result of their public sector ownership. Concessions
See State Government Concessions. Consolidated Fund
The Fund established by Part II of the Public Account Act 1986 to receive all taxes and the majority of other revenue received by the Government. All payments from the Consolidated Fund must be authorised by an Act of Parliament. Consolidated Fund Appropriation Act
An Act which appropriates moneys from the Consolidated Fund for expenditure by the Government during the financial year. Appropriation Acts are generally in force from 1 July in one calendar year until 30 June in the subsequent year. Consolidated Fund Surplus (CFS)
The CFS is the excess of Consolidated Fund receipts over the expenditure of these funds (net of loan repayments). A CFS represents funds which are available for the retirement of debt. A negative CFS is the same as the Net Financing Requirement (NFR). Constant Price Terms
Constant price estimates provide a convenient way of measuring real changes in economic time series. Specifically, such estimates measure the change in a series after adjusting values to remove the effects of price movements over time using an index compiled in terms of a constant base year. In Australian Bureau of Statistics series, most measures of real changes are now estimated using chain volume measures.
See also: Chain Volume Measures; Real Terms. Consumer Price Index
A measure of the change in prices, over time, of a basket of goods and services representing household expenditure patterns. It aims to measure the changes in the cost of living for the average household. Department Operating Accounts
Accounts created in the Special Deposits and Trust Fund to record all department-related transactions. These accounts receive funds appropriated to departments from the Consolidated Fund and retain certain revenue that is not identified for return to the Consolidated Fund. Department Operating Accounts enable the consideration of the total resourcing of Government Outputs.
272 Conventions and Glossary of Terms Economic and Social Infrastructure Fund
The Economic and Social Infrastructure Fund was established in the 2003-04 Budget to provide funding for major economic projects and the implementation of social initiatives. Further information on the Economic and Social Infrastructure Fund is provided in Chapter 4 of Budget Paper No 2 Operations of Government Departments 2004-05. Equalisation Grants
See Fiscal Equalisation. Fees
Fees from regulatory services are levies not primarily designed to raise general revenue, but which are associated with the granting of permit or privilege or for the regulation of activity. This distinguishes them from charges for services rendered to clients and receipts from the sale of goods and services provided by public sector agencies. Financial Agreement Acts 1927 and 1994
Agreements between the Commonwealth Government and State Governments establishing the Loan Council and prescribing a framework for governmental borrowing and sinking fund arrangements. Financial Year
The financial year runs from 1 July in one calendar year to 30 June in the following year. Fines
Fines are civil and criminal penalties imposed on law breakers other than penalties imposed by tax authorities. First Home Owners Scheme
Under the Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations (IGA), the states and territories were required to establish, administer and fund a First Home Owners Scheme. The scheme provides first home owners with a grant of $7 000 to offset the impact of the GST on house prices. Fiscal Capacity
The capacity of a State to meet its financial responsibilities. It reflects the adequacy of the various tax bases available to that State, as well as the existence of any disabilities or advantages faced by that State in the provision of services and the raising of revenues. Fiscal Equalisation
Also described as horizontal fiscal equalisation, it refers to the principle of allocating financial assistance to the states and territories which, as assessed by the Commonwealth Grants Commission, is designed to provide a jurisdiction with the capacity to provide services at a standard comparable to those of the other jurisdictions on average provided it makes the average revenue raising effort.
Conventions and Glossary of Terms 273 Fiscal Surplus
The Fiscal Surplus measures a government's investment-saving balance. A Fiscal Surplus indicates that a government is saving more than enough to finance all of its operations and capital spending. The Fiscal Surplus (which is recorded in the operating statement) differs from the net operating balance in relation to the treatment of capital expenditure. The Fiscal Surplus includes net capital expenditure, but not depreciation. Full Time Equivalents (FTEs)
A measure of staffing levels which converts the total number of hours worked by all staff (including part time and casual staff) to an equivalent number of full time staff. General Government Sector
For the purpose of reporting uniform information on Government Financial Statistics (GFS), public sector entities have been classified according to the General Government, Public Non-Financial Corporation (PNFC) or Public Financial Corporation (PFC) Sectors. General Government agencies are departments, bodies, or offices that provide services free of charge or at prices substantially below their cost of production. General Revenue Assistance
Grants provided by the Commonwealth to the state and territory Governments and Local Governments, to be used for purposes determined by the recipients. Prior to 2000-01, the main form of general revenue assistance provided to the states and territories was the Financial Assistance Grant. Other forms of general revenue assistance provided were National Competition Policy related payments and Identified Local Road Funds. Under the IGA, general revenue assistance grants are provided in the form of GST revenue payments. In addition, National Competition Policy related payments have continued under the new arrangements. There has been undertaking form the Commonwealth that National Competition Policy will continue beyond 2005-06. Goods and Services Tax (GST)
This is a tax imposed by the Commonwealth Government from 1 July 2000 on most goods and services provided in Australia. All of the revenue raised from this tax is distributed to the states and territories using the principle of horizontal fiscal equalisation. Government Business Enterprises
Government Business Enterprises (GBEs) are entities which operate outside the Public Account, principally on the basis of funds derived through their operations, and have no impact on Budget expenditure except in circumstances where they receive funding for CSOs or receive payments for services provided. GBEs also may provide returns to the Consolidated Fund in the form of dividends to shareholders (the State) and the payment of taxation equivalents and guarantee fees and are subject to their own enabling legislation and the GBE Act. GBEs prepare annual reports, with financial statements on a commercial, accrual accounting basis, which are tabled in Parliament and are subject to audit by the Auditor-General as the auditor appointed by the shareholders.
274 Conventions and Glossary of Terms Government Financial Statistics (GFS)
The Government Financial Statistics system employed by the Australian Bureau of Statistics is designed to provide statistics relating to all public sector entities such as government departments, statutory authorities, government businesses and local government authorities. The GFS is based on two international standards, the United Nations' System of National Accounts (SNA93) and the International Monetary Fund's A Manual on Government Finance Statistics. It is the framework used to prepare budgets and outcomes, in accordance with UPF. Governor-in-Council
The Governor acting with the advice of the Executive Council, which consists of two or more Ministers of the Crown presided over by the Governor. Grants
Non-repayable, non-interest bearing assistance. Grants and Subsidies Expenditure
Grants and Subsidies Expenditure is a classification of expenditure that relates to payments or concessions made by the Government to individuals, groups or organisations. These include Community Service Obligations (CSOs) and Community Service Activities (CSAs) payments to Government Business Enterprises (GBEs) and State-owned Companies (SOC). These payments are determined by the Government and are non-discretionary. In relation to the Output Methodology, these payments are not strictly Outputs, but rather Government purchases the administration of these payments from departments. Details of Grants and Subsidies expenditure are included in relevant department chapters in Budget Paper No 2. Gross State Product
The total value added in production in the State economy in a year. Broadly, it equals the total value of goods and services produced less the cost of goods and services used in the production process. GST Administration Costs
Under the IGA, the states and territories are required to meet the costs of administering the GST. These costs are those incurred through the Australian Tax Office and Australian Customs Service in the collection of the GST. GST Law
Has the same meaning as defined in the A New Tax System (Goods and Services Tax) Act 1999 of the Commonwealth. Guarantee Fees
Guarantee fees are applied to GBEs and SOCs to compensate for the lower borrowing rates that GBEs and SOCs often receive due to their Government ownership. Guarantee fees apply to effectively increase the borrowing rate that GBEs and SOCs receive up to the market borrowing rate. In line with National Competition Policy principles, guarantee fees remove any competitive advantage that a GBE or SOC may receive in terms of reduced debt costs through Government ownership.
Conventions and Glossary of Terms 275 Guaranteed Minimum Amount
Under the Intergovernmental Agreement, the Commonwealth has guaranteed that no state or territory will be worse off financially under the new Commonwealth-State financial arrangements than they would have been had the National Tax Reforms not taken place. The guaranteed minimum amount is the minimum level of funding required by each state or territory to ensure that the guarantee provisions of the IGA are met. Horizontal Fiscal Equalisation
See Fiscal Equalisation. Implicit Price Deflator – GSP
An Implicit Price Deflator (IPD) is another means, in addition to the Consumer Price Index, by which changing prices can be measured. The IPD for Gross State Product (GSP) is a broad measure of price change used in the State accounts. IPD indexes are obtained by dividing a current price value by its corresponding constant price value or chain volume measure. Infrastructure Fund
The Infrastructure Fund (comprising a Social Infrastructure Fund and an Economic Infrastructure Fund) was established in the 2001-02 Budget to provide funding for the development of major government social and economic infrastructure. Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations (IGA)
This is the agreement signed by the Commonwealth and all state and territory Governments in June 1999 which provides for major changes to Commonwealth-State financial relations. Under the IGA GST revenue is to be distributed to the states and territories on a horizontal fiscal equalisation basis. In return, the states and territories have agreed to forego revenue and accept additional expenditure responsibilities. Loan Council
A body comprising the Commonwealth, state and territory Treasurers which meets, usually on an annual basis, to determine the Loan Council Allocation for the Commonwealth, states and territories for the forthcoming financial year. Loan Council Allocation (LCA)
A state or territory's Loan Council Allocation is the borrowing level for the jurisdiction endorsed by the Loan Council, based on its combined General Government and PNFC sector deficit (adjusted for financing transactions), plus a number of memorandum items. These items reflect public sector transactions which may have many of the characteristics of borrowings but do not constitute formal borrowings. One example is operating leases. Thus the LCA provides an indicator of the likely impact of the Total State Public Sector's operations on the economy through its net call on national savings. Major Works
Capital investment projects, including construction and maintenance, which have an estimated total value greater than $100 000.
276 Conventions and Glossary of Terms National Competition Policy (NCP)
NCP involves a series of policy initiatives, agreed by all Australian governments that are aimed at promoting free and open competition, where this is in the public benefit, which in turn will increase efficiency and productivity throughout the Australian economy. The basis of NCP is three intergovernmental agreements between the Commonwealth and state and territory Governments that were signed on 11 April 1995. These agreements are the Conduct Code Agreement (relating to the extension of Part IV of the Commonwealth's Trade Practices Act 1974 to all businesses), the Competition Principles Agreement (relating to the implementation of a series of policy elements designed to improve competition in the Australian economy) and the Agreement to Implement the National Competition Policy and Related Reforms (relating to the sharing of the financial benefits expected to flow from the implementation of NCP).
NCP is not about competition for competition's sake and, in most areas, requires the use of the public benefit test to ensure that all government and community objectives are considered before specific action is taken to facilitate competition in the economy. For example, considerations include, but are not limited to, economic and regional development (including employment and investment growth) and the interests of consumers generally or a class of consumers, and social welfare and equity considerations (including community service obligations). Net Debt
The State's Net Debt is defined as the difference between selected financial assets (claims the Government has on external organisations and individuals) and selected financial liabilities (claims of external organisations and individuals on the Government) held in the form of cash, deposits, non-transferable loans, transferable debt securities (eg Treasury notes and bonds) and finance leases. This definition does not include other financial assets and liabilities such as accounts receivable/payable, assets (such as shares) representing equity in other organisations (including public trading enterprises), liabilities for unfunded employee entitlements and assets and liabilities in the form of long-term trade credit. Net Interest Cost Ratio
The ratio of net interest costs met from the General Government sector (where net interest costs are defined as gross interest expenses less interest revenue and interest received from investments) to total revenue of the General Government sector net of total interest recoveries. Nominal Terms
Values expressed in nominal terms are actual values at a point in time and reflect changing price levels over time. The term is used to contrast with 'real terms'. Outcomes
There are three different levels of outcomes.
• Community Outcomes are the long-term, high level objectives sought by the Government for the benefit of the Tasmanian community. These Outcomes are at such a high level that all of the activities of the State Service, along with contributions from the non-government sector of the Tasmanian community, contribute to their achievement.
• Government Policy Priorities are those policy directions which indicate a change in direction, an area of reform or a change in priority.
Conventions and Glossary of Terms 277 • Agency Outcomes are those Outcomes for which an agency can be held accountable, and the achievement of which contributes not only to the Government Policy Priorities but also to the Community Outcomes. Output
An identifiable good or service produced by, or on behalf of, a department and provided to customers outside the department. The Government purchases Outputs in order to achieve policy objectives or Outcomes. Output Expenditure
Expenditure over which a department has flexibility to reallocate funds to other Outputs within the limits of Budget allocation principles. Output Methodology
A system of operating, budgeting and reporting which focuses attention on the Government's desired policy Outcomes and the level of Outputs required to be provided by the Government in order to achieve those Outcomes. Premiers' Conference
A meeting of the Prime Minister, State Premiers and the Chief Ministers of the two Territories, which prior to the year 2000 was held annually, to deal with Commonwealth-State financial relations issues. Under the IGA, this meeting has been replaced by the Treasurers' Conference. Public Account
The account established by the Public Account Act 1986. It consists of two separate Funds: the Consolidated Fund and the Special Deposits and Trust Fund. Public Debt
The indebtedness to the Commonwealth for the State's share of loan raising under the Financial Agreement. Public Non-Financial Corporation Sector
The PNFC comprises those entities that aim to cover the majority of their expenses by revenue from the sale of goods and services and which are mainly market, non-regulatory and non-financial in nature. Generally, this sector covers the State's Government Business Enterprises (GBEs) and State-owned Companies (SOCs). Public Financial Corporations Sector
The Public Financial Corporations Sector comprises those entities that provide financial services, including central borrowing authorities (the Tasmanian Public Finance Corporation) and insurance companies (Motor Accidents Insurance Board).
Central borrowing authorities provide finance for other government entities and arrange investments of their surplus funds.
278 Conventions and Glossary of Terms Real Terms
Statistics measured in real terms remove the effects of rising prices or inflation to facilitate a more accurate measure of change over time. Such values are now most commonly referred to in terms of constant price estimates or chain volume measures (where changing price relativities are factored in from year to year). Except where otherwise stated, figures in the Budget documents expressed in real terms are calculated using the Gross State Product Implicit Price Deflator (GSP IPD). Recurrent Services
That part of expenditure from the Consolidated Fund which relates to the 'ordinary annual' expenditures of the Government that are incurred in the production of Outputs. The major components of expenditure are salary and administrative and operating expenses, including building services and maintenance and furniture and equipment purchases. In addition, Recurrent Services include Grants and Subsidies expenditure and Reserved by Law payments. Reserved by Law Payments
Reserved by Law payments are recurrent expenditures that are made where there is a legislative requirement for funding to be provided for specific purposes without the necessity for a separate appropriation. Royalty
A payment made for the use of publicly owned resources such as timber, water, fish, minerals or intellectual property. Special Deposits and Trust Fund
A Fund established under the Public Account Act 1986 which comprises various individual accounts designated for specific purposes. Specific Purpose Payments (SPPs)
SPPs (also known as tied grants) are payments made by the Commonwealth to the states and territories, generally under section 96 of the Constitution, for the purposes, and on such terms and conditions, as may be specified by the Commonwealth. All SPPs of a recurrent nature are in the form of grants, while a small amount of assistance of a capital nature takes the form of advances. State Capital Program
The State Capital Program comprises the capital programs of State authorities, GBEs and SOCs and the capital expenditure programs of Government departments. Details of the State Capital Program are provided in Chapter 6 of Budget Paper No 1 Budget Overview 2004-05. It provides information on the whole State public sector's capital expenditure in Tasmania. State Debt
The total of debt incurred by the State under the Financial Agreement and borrowings through Tascorp.
Conventions and Glossary of Terms 279 State Government Concessions
A State Government Concession is a reduction, discount, subsidy, rebate or waiver/exemption provided by a State Government agency on the value of goods or services (associated fees) to an individual, family or household based on one or more of the following eligibility criteria:
• low income;
• in recognition of age or service to the country or community; and
• special needs or disadvantages.
Eligibility is usually, but not always, linked to the production by the recipient of a specified concession card to indicate their inclusion in one of the above groups. State-owned Company
State-owned Companies (SOCs) operate outside the Public Account, principally on the basis of funds derived through their operations and are subject to Corporations Law. They have no impact on the Consolidated Fund except in circumstances where they receive payment for services provided by the SOC to the Government, or provide dividends, taxation equivalents or guarantee fees to the Government. State Public Sector Debt
The term used to describe the overall indebtedness of the Government and its State authorities, which includes repayable advances from the Commonwealth to the State for specific programs. Statutory Authority
Statutory authorities are each established under specific legislation which defines the purpose for which they are established and the general functions for which they are responsible. Statutory authorities can be classified into two distinct categories, namely:
• those authorities that are subject to specific requirements contained in their enabling legislation; and
• those authorities which are subject to provisions contained in their enabling legislation and are also subject to the provisions of the Government Business Enterprises Act 1995 (GBE Act). Authorities in this category are those which undertake commercial trading activities. These authorities are described as GBEs. Statutory Office
A position established under an Act of Parliament, for example the office of Auditor-General. Supply Act
The purpose of a Supply Act is to appropriate funds for payments necessary for the ongoing business of the Government during the period between the first day of each financial year and the passing of the Consolidated Fund Appropriation Bill. It lapses when the Consolidated Fund Appropriation Act is passed. In previous years, where the Budget was introduced into Parliament and finally passed by Parliament well into the Budget year, the Supply Act played a very important role in the provision of funds to agencies. Since the movement to a May Budget in 1999, a Supply Act has not been required.
280 Conventions and Glossary of Terms Tascorp
The Tasmanian Public Finance Corporation (Tascorp) acts as the State's central borrowing authority for the Government and raises funds for State authorities, GBEs and SOCs. It also provides an investment facility for these entities. Taxation
A compulsory levy or impost which the Government imposes on transactions, inputs, documents, property and certain activities for the purpose of raising revenue. Unlike a charge, fee or royalty, a tax does not carry a specific entitlement to goods and services. Taxation Equivalents
Taxation equivalents are tax-like payments that are required to be paid to the Tasmanian Government by GBEs and SOCs, in line with National Competition Policy principles, to compensate for GBEs and SOCs being exempt from Commonwealth income tax. Taxation equivalents are applied to ensure that GBEs and SOCs are not placed at a competitive advantage due to their exemption from this tax. Territorial Revenue
Revenue arising from the sale, rent or other use of Crown land or property rights. Treasurers' Conference
Under the IGA, the Treasurers' Conference is established, comprising the Treasurer of the Commonwealth and the Treasurers of the states and territories. The detailed responsibilities of the this forum are provided in the IGA. Treasurer's Reserve
An appropriation to the Treasurer to provide funds to meet expenditure which could not have been reasonably foreseen at the time of preparation of the Budget. The Treasurer's Reserve is comprised of a statutory amount of $10 million, as provided for in the Public Account Act 1986, together with any additional amount appropriated. Uniform Presentation Framework (UPF)
The May 1991 meeting of the Premier's Conference agreed to the introduction of the Uniform Presentation Framework in 1991. The primary objective of the UPF is to ensure that Commonwealth, state and territory governments provide a common core of financial information in their Budget Papers to provide more meaningful comparisons of each government's financial results and projections.
The format of the UPF was last revised in March 2000 to adopt accrual Government Finance Statistics based reporting. Vertical Fiscal Imbalance
An imbalance between the expenditure responsibilities of each tier of government and the own-source revenue resources available to that tier. Australia is characterised by significant vertical fiscal imbalance, since the Commonwealth raises around 72 per cent of national tax revenues but has direct responsibility for only approximately 54 per cent of all public sector outlays.
Conventions and Glossary of Terms 281 Works and Services
That part of Consolidated Fund expenditure relating to the construction, purchase and maintenance of major capital assets such as roads, public housing, schools, hospitals and equipment. Works and Services expenditure is reflected in the Roads, Housing and Department's Capital Investment Programs and the appropriation of funds to the Economic and Social Infrastructure Fund.
282 Conventions and Glossary of Terms
PARLIAMENT OF TASMANIA
Budget Paper No 2 Operations of Government Departments 2004-05 Volume 2
Presented by the Honourable Paul Lennon MHA, Treasurer, for the information of Honourable Members, on the occasion of the Budget, 2004-05
Printed By The Government Printer, Tasmania
Budget Documents are also available at www.treasury.tas.gov.au
Useful 2004-05 Budget and Government Web sites www.treasury.tas.gov.au Copies of all Budget Papers can be found at the Department of Treasury and Finance's web site. The Department's web site also provides information on major departmental initiatives, activities and publications. www.media.tas.gov.au This web site contains the Government's Budget related media releases www.tas.gov.au The Tasmania On-line web site provides links to the web sites of a wide range of Tasmanian public and private sector organisations. www.service.tas.gov.au The Service Tasmania web site provides a comprehensive entry point to Government services in Tasmania. www.tasmaniatogether.tas.gov.au This web site provides detailed information on Tasmania Together, including the current status of this important initiative.
CONTENTS
VOLUME 1 Page 1 Introduction 1 2 Department of Economic Development 15 3 Department of Education 43 4 Finance-General 83 5 Department of Health and Human Services 127 6 House of Assembly 171 7 Department of Infrastructure, Energy and Resources 181 8 Department of Justice 231 Conventions and Glossary of Terms 270
i CONTENTS
VOLUME 2 Page 9 Legislative Council 283 10 Legislature-General 295 11 Ministerial and Parliamentary Support 311 12 Office of the Governor 323 13 Department of Police and Public Safety 335 14 Department of Premier and Cabinet 369 15 Department of Primary Industries, Water and Environment 411 16 Tasmanian Audit Office 463 17 Department of Tourism, Parks, Heritage and the Arts 475 18 Department of Treasury and Finance 513 19 Other General Government Sector Entities 539 Conventions and Glossary of Terms 567
ii INDEX
VOLUME 1 Page 1 Introduction 1
Overview 2
Current Ministerial Portfolio and Departmental Structure 4
The Structure of Departmental Chapters 5
Department Overview 5
Department Information 6
2004-05 Across Department Budget Issues 11
Other Budget and Related Papers 11
Consolidated Fund Appropriation Bill 11
Second Appropriation Bill 12
Budget Speech 12
Budget Paper No 1 Budget Overview 2004-05 12
Budget Summary 12
The Tasmanian Government Financial System 12
Other documents distributed with the Budget Papers 12
2 Department of Economic Development 15
Agency Outline 15
Strategic Focus 16
Key Strategies 16
2004-05 Major Initiatives 17
Summary Agency 2004-05 Budget Information 19
Financial Summary 19
Infrastructure Funds 20
iii Detailed Output Group 2004-05 Budget Information 21
Output Group 1: Investment, Trade and Development 21
Output Group 2: Centre for Research, Industry and Strategic Planning 30
Output Group 3: Recreation Industry Development 32
Detailed Budget Statements 36
3 Department of Education 43
Agency Outline 43
Strategic Focus 44
Key Strategies 46
2004-05 Major Initiatives 48
Summary Agency 2004-05 Budget Information 51
Financial Summary 51
Infrastructure Funds 52
Detailed Output Group 2004-05 Budget Information 53
Output Group 1: Pre-Compulsory and Compulsory Education 53
Output Group 2: Post-Compulsory Education and Training 60
Output Group 3: Public Information Services 67
Capital Investment Program 72
Detailed Budget Statements 75
4 Finance-General 83
Outline 83
Summary Agency 2004-05 Budget Information 84
Financial Summary 84
Detailed Output Group 2004-05 Budget Information 86
Output Group 1: Debt Servicing and Management 86
Output Group 2: Employee Related Costs 90
Output Group 3: Government Businesses 93
Output Group 4: Miscellaneous 96
Grants and Subsidies 104
iv Capital Investment Program 110
Economic and Social Infrastructure Fund 111
Social Infrastructure Fund 115
2001-02 Infrastructure Fund 117
Detailed Budget Statements 119
5 Department of Health and Human Services 127
Agency Outline 127
Strategic Focus 128
Key Strategies 129
2004-05 Major Initiatives 130
Summary Agency 2004-05 Budget Information 132
Financial Summary 132
Infrastructure Funds 133
Detailed Output Group 2004-05 Budget Information 134
Output Group 1: Community, Population and Rural Health 134
Output Group 2: Children and Families 140
Output Group 3: Hospitals and Ambulance Service 145
Output Group 4: Housing Tasmania 151
Administered Items 156
Capital Investment Program 158
Detailed Budget Statements 162
6 House of Assembly 171
Agency Outline 171
Strategic Focus 171
Key Strategies 171
2004-05 Major Initiatives 171
Summary Agency 2004-05 Budget Information 172
Financial Summary 172
Detailed Output Group 2004-05 Budget Information 172
v Output Group 1: House of Assembly Support Services 173
Output Group 2: Payments Administered by the House of Assembly 174
Detailed Budget Statements 175
7 Department of Infrastructure, Energy and Resources 181
Agency Outline 181
Strategic Focus 181
Key Strategies 182
2004-05 Major Initiatives 182
Summary Agency 2004-05 Budget Information 187
Financial Summary 187
Detailed Output Group 2004-05 Budget Information 188
Output Group 1: Development of Transport Policy Advice and Planning 189
Output Group 2: Land Transport Safety Programs 192
Output Group 3: Provision of Transport Services and Infrastructure 196
Output Group 4: Provision of Energy Advisory and Regulatory Services 198
Output Group 5: Workplace Standards 201
Output Group 6: Mineral Resources Management and Administration 204
Output Group 7: Support for the Minister in Infrastructure Development and Government Business Management 207
Output Group 8: Support for Racing Industry 209
Output Group 9: Transport Subsidies and Concessions 211
Administered Items 213
Capital Investment Program 218
Detailed Budget Statements 221
8 Department of Justice 231
Agency Outline 231
Strategic Focus 231
Key Strategies 231
2004-05 Major Initiatives 232
vi Financial Summary 233
Detailed Output Group 2004-05 Budget Information 234
Output Group 1: Administration of Justice 234
Output Group 2: Legal Services 238
Output Group 3: Registration Services 241
Output Group 4: Review Services 243
Output Group 5: Electoral Services 247
Output Group 6: Corrective Services 250
Output Group 7: Other Services 253
Output Group 8: Consumer Services 255
Output Group 9: Industrial Relations Services 257
Administered Items 259
Capital Investment Program 261
Detailed Budget Statements 262
Conventions and Glossary of Terms 270
Conventions 270
Glossary of Terms 270
vii INDEX
VOLUME 2 Page 9 Legislative Council 283
Agency Outline 283
Strategic Focus 283
Key Strategies 283
2004-05 Major Initiatives 284
Summary Agency 2004-05 Budget Information 285
Financial Summary 285
Detailed Output Group 2004-05 Budget Information 286
Output Group 1: Legislative Council Support Services 286
Output Group 2: Payments Administered by the Legislative Council 288
Detailed Budget Statements 289
10 Legislature-General 295
Agency Outline 295
Strategic Focus 295
Key Strategies 295
2004-05 Major Initiatives 295
Summary Agency 2004-05 Budget Information 296
Financial Summary 296
Detailed Output Group 2004-05 Budget Information 296
Output Group 1: Parliamentary Reporting Service 297
Output Group 2: Parliamentary Library Service 299
Output Group 3: Parliamentary Printing and Systems 301
Output Group 4: Joint Services 302
viii Detailed Budget Statements 304
11 Ministerial and Parliamentary Support 311
Agency Outline 311
Strategic Focus 311
Key Strategies 311
Summary Agency 2004-05 Budget Information 312
Financial Summary 312
Detailed Output Group 2004-05 Budget Information 313
Output Group 1: Support for Members of Parliament 313
Detailed Budget Statements 315
12 Office of the Governor 323
Agency Outline 323
Strategic Focus 324
Key Strategies 324
2004-05 Major Initiatives 324
Summary Agency 2004-05 Budget Information 325
Financial Summary 325
Detailed Output Group 2004-05 Budget Information 326
Output Group 1: The Office of the Governor 326
Performance Information 328
Capital Investment Program 328
Detailed Budget Statements 329
13 Department of Police and Public Safety 335
Agency Outline 335
Strategic Focus 335
Key Strategies 336
2004-05 Major Initiatives 336
Summary Agency 2004-05 Budget Information 338
Financial Summary 338
ix Detailed Output Group 2004-05 Budget Information 340
Output Group 1: Policing Support to the Community 340
Output Group 2: Crime Detection and Investigation 342
Output Group 3: Traffic Law Enforcement and Road Safety 346
Output Group 4: Protection of Primary Industry and Fisheries Resources 349
Output Group 5: Emergency Management 352
Output Group 6: Support to Judicial Services 355
Output Group 7: Ministerial Support and Information Services 358
Capital Investment Program 361
Detailed Budget Statements 362
14 Department of Premier and Cabinet 369
Agency Outline 369
Strategic Focus 369
Key Strategies 370
2004-05 Major Initiatives 370
Summary Agency 2004-05 Budget Information 371
Financial Summary 371
Detailed Output Group 2004-05 Budget Information 372
Output Group 1: Support for Executive Decision Making 372
Output Group 2: Government Processes and Services 379
Output Group 3: Electronic Services for Government Agencies and the Community 382
Output Group 4: Industrial Relations and State Service Management 388
Output Group 5: Tasmania Together Progress Board 391
Output Group 6: Women Tasmania 393
Output Group 7: Development of Local Government 396
Administered Items 399
Detailed Budget Statements 402
15 Department of Primary Industries, Water and Environment 411
Agency Outline 411
x Strategic Focus 411
Key Strategies 412
2004-05 Major Initiatives 414
Output Group Restructure 416
Summary Agency 2004-05 Budget Information 418
Financial Summary 418
Detailed Output Group 2004-05 Budget Information 420
Output Group 1: Information and Land Services 420
Output Group 2: Food, Agriculture and Fisheries 425
Output Group 3: Resource Management and Conservation 430
Output Group 4: Environment Protection and Analytical Services 435
Output Group 5: Water Resources 439
Output Group 6: Policy and Planning 445
Administered Items 448
Capital Investment Program 451
Detailed Budget Statements 452
16 Tasmanian Audit Office 463
Agency Outline 463
Strategic Focus 463
Key Strategies 464
2004-05 Major Initiatives 464
Summary Agency 2004-05 Budget Information 465
Financial Summary 465
Detailed Output Group 2004-05 Budget Information 466
Output Group 1: Public Sector Management and Accountability 466
Detailed Budget Statements 470
17 Department of Tourism, Parks, Heritage and the Arts 475
Agency Outline 475
Strategic Focus 477
xi Key Strategies 478
2004-05 Major Initiatives 481
Economic and Social Infrastructure Fund 483
Summary Agency 2004-05 Budget Information 484
Financial Summary 484
Detailed Output Group 2004-05 Budget Information 485
Output Group 1: Tourism 485
Output Group 2: Parks and Wildlife Management 491
Output Group 3: Heritage and the Arts 494
Administered Items 501
Capital Investment Program 504
Detailed Budget Statements 505
18 Department of Treasury and Finance 513
Agency Outline 513
Strategic Focus 513
Key Strategies 514
2004-05 Major Initiatives 515
Summary Agency 2004-05 Budget Information 516
Financial Summary 516
Detailed Output Group 2004-05 Budget Information 517
Output Group 1: Financial and Resource Management Services 517
Output Group 2: Economic and Fiscal Policy Advice 521
Output Group 3: Revenue and Regulatory Management Services 525
Output Group 4: Community Assistance 529
Administered Items 531
Detailed Budget Statements 532
19 Other General Government Sector Entities 539
Introduction 539
Financial Summary 540
xii Inland Fisheries Service 540
Marine and Safety Tasmania 544
The Nominal Insurer 549
Royal Tasmanian Botanical Gardens 552
State Fire Commission 557
TAFE Tasmania 561
Conventions and Glossary of Terms 567
Conventions 567
Glossary of Terms 567
xiii
9 LEGISLATIVE COUNCIL
AGENCY OUTLINE
The Office of the Clerk of the Legislative Council provides apolitical, innovative and integrated support services, and information to the Legislative Council and its elected Members in the interests of the people of Tasmania.
The Governor, the Legislative Council and House of Assembly together constitute the Parliament of Tasmania.
The Legislative Council is the Upper House of the Parliament and functions as a House of Review.
The role of the Members of the Legislative Council is twofold:
• to examine the merits of legislation and to authorise expenditure of State monies; and
• to provide a parliamentary check on the Government of the day. In modern times, the Legislative Council has expanded from the base of being a purely legislative body to a House that involves itself with the examination and analysis of actions, decisions and workings of the Executive Government.
STRATEGIC FOCUS
The strategic focus of the Office of the Clerk of the Legislative Council is to be an efficient and responsive administration. The continued aim is to provide the necessary levels and type of support to the Legislative Council and its Members so as to enable the effective and legitimate functioning of the Council as an important element in a democratic system of government, a system of government in which a 'House of Review' continues, as part of its role, to examine and question decisions made by government.
KEY STRATEGIES
The Office of the Clerk of the Legislative Council will continue to:
• support the Legislative Council in its constitutional role;
• provide the highest possible level of advice, together with apolitical support including administrative, research, policy and procedural support; and
• promote public awareness of the purpose, functions and work of the Council.
Chapter 9: Legislative Council 283 2004-05 MAJOR INITIATIVES
The principal objectives and responsibilities of the Office of the Clerk of the Legislative Council are to:
• provide an accurate retrieval and assessment system of precedent, law, history and parliamentary method necessary for the effective functioning of the Legislative Council and its Committees;
• provide effective apolitical support, including administrative, research, policy and procedural support and advice to the President of the Legislative Council and other elected Members;
• ensure the effective custody of documents, including journals, records and papers of the Legislative Council, the responsibility for which, in accordance with Standing Orders, is vested in the Clerk of the Legislative Council;
• ensure the effective functioning of Standing, Sessional and Select Committees, including the provision of adequate and appropriate resources;
• accurately prepare and present legislation, once passed through both Houses, to the Governor for Royal Assent;
• promote public awareness of the purpose, functions and work of the Legislative Council;
• maximise the potential of all staff through effective human resource practices; and
• efficiently manage resources, both financial and human.
284 Chapter 9: Legislative Council SUMMARY AGENCY 2004-05 BUDGET INFORMATION
Financial Summary
Table 9.1: Summary Financial Information for the Legislative Council 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 1 943) 1 974) 1.6) Reserved by Law 1 831) 1 902) 3.9) TOTAL 3 774) 3 876) 2.7)
OPERATING EXPENSES Legislative Council Support Services 1 895) 1 969) 3.9) Payments Administered by the Legislative Council 1 831) 1 902) 3.9) TOTAL 3 726) 3 871) 3.9)
NET OPERATING RESULT 48) 5) (89.6)
Chapter 9: Legislative Council 285 DETAILED OUTPUT GROUP 2004-05 BUDGET INFORMATION
The individual Outputs of the Legislative Council are provided under the following Output Groups:
Output Group 1 Legislative Council Support Services; and
Output Group 2 Payments Administered by the Legislative Council.
Output Group 1: Legislative Council Support Services Description
Services provided under this Output Group include:
• procedural, administrative and research support and advice to the President and Members of the Legislative Council;
• assistance to Members of the Legislative Council in order that they are able to execute their duties and responsibilities as elected representatives of the people of Tasmania;
• tabling of Legislative Council Select Committee and Parliamentary Joint Select and Standing Committee reports on a variety of subject specific matters agreed to by Resolution or as referred;
• the continuing statutory obligations of the three Joint Parliamentary Standing Committees;
• the provision of continuing professional development allowances to Members; and
• the provision of travel and research support allowances to Members.
Outcomes to be achieved from this Output Group are as follows:
• the continuing lawful and constitutional operation of the Legislative Council;
• provision of quality and timely advice on parliamentary practice and procedure to the President and Members;
• provision of a range of services to directly support the functioning of the Legislative Council during ordinary sittings and to support its Sessional, Standing and Select Committees;
• quality and timely research and information to Members;
• provision of accommodation and office services to Members so as to enable the efficient and effective discharge of their Parliamentary and representational responsibilities; and
• the effective financial management of the Legislative Council in accordance with statutory requirements and other instructions.
286 Chapter 9: Legislative Council Table 9.2: Summary Financial Information - Output Group 1 2003-04) 2004-05) Legislative Council Support Services Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 1 943) 1 974) 1.6) TOTAL 1 943) 1 974) 1.6)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 1 308) 1 372) 4.9) Other Employee Related Expenses 106) 110) 3.8) Superannuation 152) 158) 3.9) Depreciation and Amortisation 5) 5) ....) Supplies and Consumables Communications 86) 86) ....) Information Technology 15) 15) ....) Travel and Transport 112) 112) ....) Advertising and Promotion 1) 1) ....) Other Supplies and Consumables 110) 110) ....) TOTAL 1 895) 1 969) 3.9)
EXPENSE BY OUTPUT 1.1 Legislative Council Support Services 1 875) 1 949) 3.9) 1.2 Committee Support Services 20) 20) ....) TOTAL 1 895) 1 969) 3.9)
Major Issues and Initiatives for 2004-05
The Clerk of the Legislative Council is charged with responsibility for providing the necessary levels of support to Members of the Legislative Council. The main issue facing the Clerk of the Legislative Council is to continue to provide the highest possible standard of professional advice and support to Members in order that they are fully able to execute their range of duties and responsibilities as elected Members of the Tasmanian Parliament.
Chapter 9: Legislative Council 287 Output Group 2: Payments Administered by the Legislative Council Description
This Output Group specifically provides for the Parliamentary salaries, superannuation and allowances of Members of the Legislative Council as prescribed in the Parliamentary Salaries, Superannuation and Allowances Act 1973.
Table 9.3: Summary Financial Information - Output Group 2 2003-04) 2004-05) Payments Administered by the Legislative Council Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Reserved by Law 1 831) 1 902) 3.9) TOTAL 1 831) 1 902) 3.9)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 1 663) 1 733) 4.2) Superannuation 14) 15) 7.1) Supplies and Consumables Communications 13) 13) ....) Travel and Transport 141) 141) ....) TOTAL 1 831) 1 902) 3.9)
EXPENSE BY OUTPUT 2.1 Payments Administered by the Legislative Council 1 831) 1 902) 3.9) TOTAL 1 831) 1 902) 3.9)
288 Chapter 9: Legislative Council DETAILED BUDGET STATEMENTS
Table 9.4: Output Group Expense Summary for the Legislative Council 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) Output Group 1 - Legislative Council Support Services 1.1 Legislative Council Support Services 1 875) 1 949) 3.9) 1.2 Committee Support Services 20) 20) ....) 1 895) 1 969) 3.9) Output Group 2 - Payments Administered by the Legislative Council 2.1 Payments Administered by the Legislative Council 1 831) 1 902) 3.9) 1 831) 1 902) 3.9)
TOTAL AGENCY 3 726) 3 871) 3.9)
Chapter 9: Legislative Council 289 Table 9.5: Statement of Financial Performance for the Legislative Council 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 1 943) 1 974) 1.5) Reserved by Law 1 831) 1 902) 3.8) TOTAL 3 774) 3 876) 2.7)
OPERATING EXPENSES Employee Entitlements 3 077) 3 215) 4.4) Superannuation 166) 173) 4.2) Depreciation and Amortisation 5) 5) ....) Supplies and Consumables 478) 478) ....) TOTAL 3 726) 3 871) 3.8)
NET OPERATING RESULT 48) 5) (89.6)
290 Chapter 9: Legislative Council Table 9.6: Statement of Financial Position as at 30 June for the Legislative Council 2004) 2005) Budget) Budget) Variation) $'000) $'000) %) CURRENT ASSETS Cash 5) 5) ....) Receivables 8) 8) ....) Prepayments 3) 3) ....) TOTAL 16) 16) ....)
NON-CURRENT ASSETS Plant and Equipment1 48) 962) ....) Other1 919) ....) (100.0) TOTAL 967) 962) (0.6)
TOTAL ASSETS 983) 978) (0.6)
CURRENT LIABILITIES Payables 101) 101) ....) Employee Entitlements 360) 350) (2.8) Accrued Expenses 19) 19) ....) Other 3) 3) ....) TOTAL 483) 473) (2.1)
NON-CURRENT LIABILITIES Employee Entitlements 28) 28) ....) TOTAL 28) 28) ....)
TOTAL LIABILITIES 511) 501) (2.0)
NET ASSETS 472) 477) 1.0)
Note: 1. The increase in Plant and Equipment represents the reclassification of assets from Other to Plant and Equipment.
Chapter 9: Legislative Council 291 Table 9.7: Statement of Cash Flows for the Legislative Council 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) CASH FLOWS FROM OPERATING ACTIVITIES Receipts Revenue from Government Appropriation 1 943) 1 974) 1.5) Reserved By Law 1 831) 1 902) 3.8) Payments Employee Entitlements (3 126) (3 225) 3.1) Superannuation (170) (173) 1.7) Supplies and Consumables (478) (478) ....) NET CASH FROM/(USED IN) OPERATING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM INVESTING ACTIVITIES NET CASH FROM/(USED IN) INVESTING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held ....) ....) ....)
Cash at the Beginning of Reporting Period 5) 5) ....)
Cash at the End of Reporting Period 5) 5) ....)
292 Chapter 9: Legislative Council Table 9.7: Statement of Cash Flows for the Legislative Council (continued) 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) ADMINISTERED ITEMS
CASH FLOWS FROM OPERATING ACTIVITIES Receipts GST Receipts 27) 27) ....) Payments GST Payments (27) (27) ....) NET CASH FROM/(USED IN) OPERATING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM INVESTING ACTIVITIES NET CASH FROM/(USED IN) INVESTING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held ....) ....) ....)
Cash at the Beginning of Reporting Period ....) ....) ....)
Cash at the End of Reporting Period ....) ....) ....)
Table 9.8: Reconciliation of Operating Expenses to Consolidated Fund Appropriation 2003-04 2004-05 Budget) Budget) $'000) $'000)
Total Operating Expenses 3 726) 3 871
Adjustments for Non-Cash Items Depreciation (5) (5) Employee Entitlements 53) 10 Total Cash Cost of Outputs 3 774 3 876
Total Consolidated Fund Appropriation 3 774 3 876
Chapter 9: Legislative Council 293
10 LEGISLATURE-GENERAL
AGENCY OUTLINE
Legislature-General provides support services to both Houses of Parliament and their Members through the Joint House support staff, the Parliamentary Reporting Service, the Parliamentary Library Service and the Parliamentary Printing and Systems Services.
STRATEGIC FOCUS
Legislature-General will continue to support the:
• operations of the Houses of Parliament and the fulfilment of statutory requirements; and
• operation of Joint Committees.
KEY STRATEGIES
In order to achieve, or assist in the achievement of the above outcomes, Legislature-General is implementing the following key strategies:
• the provision of the highest levels of services, research and administrative services for the effective functioning of the both Houses, its committees and Members;
• the liaison with the managers of the various branches to ensure the highest level of professional competence and efficiency; and
• by being a fair and responsible employer, maximising the potential of all staff through effective human resource practices.
2004-05 MAJOR INITIATIVES
As part of the above key strategies, Legislature-General will be subject to the results of the Joint Select Committee–Working Arrangements of the Parliament, which was established by the Parliament to inquire into Parliamentary reform, and which will continue its work in 2004-05. The further deliberations of this Committee may result in changes to Parliamentary performance and efficiency which could have either procedural or financial implications for Legislature-General.
Chapter 10: Legislature-General 295 SUMMARY AGENCY 2004-05 BUDGET INFORMATION
Financial Summary
Table 10.1: Summary Financial Information for the Legislature-General 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 3 762) 3 848) 2.3) Other Revenue 172) 172) ....) TOTAL 3 934) 4 020) 2.2)
OPERATING EXPENSES Parliamentary Reporting Service 813) 840) 3.3) Parliamentary Library Service 600) 621) 3.5) Parliamentary Printing and Systems 552) 555) 0.5) Joint Services 2 178) 2 304) 5.8) TOTAL 4 143) 4 320) 4.3)
NET OPERATING RESULT (209) (300) 43.5)
DETAILED OUTPUT GROUP 2004-05 BUDGET INFORMATION
The individual Outputs of Legislature-General are provided under the following Output Groups:
Output Group 1 Parliamentary Reporting Service;
Output Group 2 Parliamentary Library Service;
Output Group 3 Parliamentary Printing and Systems; and
Output Group 4 Joint Services.
296 Chapter 10: Legislature-General Output Group 1: Parliamentary Reporting Service Description
The Parliamentary Reporting Service produces an accurate, timely official record of debates in both Houses of Parliament, and of evidence presented to Parliamentary Committees.
Table 10.2: Summary Financial Information – Output Group 1 2003-04) 2004-05) Parliamentary Reporting Service Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 836) 830) (0.7) TOTAL 836) 830) (0.7)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 624) 648) 3.8) Other Employee Related Expenses 65) 66) 1.5) Superannuation 56) 58) 3.6) Supplies and Consumables Communications 6) 6) ....) Information Technology 10) 10) ....) Travel and Transport 6) 6) ....) Other Supplies and Consumables 46) 46) ....) TOTAL 813) 840) 3.3)
EXPENSE BY OUTPUT 1.1 Production and Printing of Parliamentary Reports 813) 840) 3.3) TOTAL 813) 840) 3.3)
Major Issues and Initiatives for 2004-05
The primary focus for the Hansard operation is to produce a daily transcript for Members as quickly as possible. Public access to Hansard is available via the Internet.
Methods of production of records are constantly under investigation and review in the light of new technology.
Chapter 10: Legislature-General 297 Output Group 1: Performance Information Delivery of Hansard
The prime focus for the Hansard operation is to produce a daily transcript for Members as quickly as possible - certainly by the following day. Part of the transcript is always delivered to Members later the same day.
Methods of production of the records are constantly under investigation and review in the light of new technology and this may produce significant changes and savings in the future.
On a normal sitting day, with the House of Assembly sitting from 10.00 am to 7.00 pm, a transcript of the morning sitting (10.00 am to 1.00 pm) is available:
• on the Intranet (internal Parliamentary network) by 5.30 pm; and
• to Members as hard copy between 6.30 pm and 7.30 pm.
A full week's transcript is available on the Internet (public access) by the end of the following week.
Delivery of Hansard transcripts for the Legislative Council meets a similar range of deadlines, depending on sitting hours.
Some of these times will vary when either House sits for extended hours or during an extended period of several weeks of continuous sitting.
298 Chapter 10: Legislature-General Output Group 2: Parliamentary Library Service Description
The Parliamentary Library Service provides for the maintenance of the Parliamentary Library and research services specifically designed to assist Members of Parliament and Parliamentary Committees in performing their duties.
Table 10.3: Summary Financial Information - Output Group 2 2003-04) 2004-05) Parliamentary Library Service Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 609) 608) (0.2) TOTAL 609) 608) (0.2)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 437) 455) 4.1) Other Employee Related Expenses 51) 52) 2.0) Superannuation 45) 47) 4.4) Supplies and Consumables Communications 16) 16) ....) Information Technology 2) 2) ....) Travel and Transport 1) 1) ....) Other Supplies and Consumables 48) 48) ....) TOTAL 600) 621) 3.5)
EXPENSE BY OUTPUT 2.1 Parliamentary Library Service 600) 621) 3.5) TOTAL 600) 621) 3.5)
Chapter 10: Legislature-General 299 Output Group 2: Performance Information Parliamentary Library
A number of performance measures have been established for the Parliamentary Library Service. These are:
• enquiries: perform 80 per cent of enquiries within clients' deadlines;
• newspapers and media releases: prepare and file daily newspaper clippings and press releases by 5.00 pm. Action to date has shown that this indicator has been 90 per cent achieved;
• media-monitoring: 85 per cent completion of videotape indexing of weeknight television broadcasts by 10.15 am;
• prepare 80 per cent of media transcription requests within clients' deadlines;
• databases: input 75 per cent of Questions, Answers and Adjournments within one week of receipt of Hansard; and
• input 85 per cent of tabled parliamentary papers within one week of tabling or receipt. Parliamentary Research Service
The performance of the Service allows it to:
• meet 85 per cent of clients' requests within their deadlines;
• update statistics on the Intranet within five days of Australian Bureau of Statistics data arrival;
• complete 10 new or updated Internet guides per year; and
• complete 95 per cent of background briefings and submission summaries to Parliamentary Committees prior to the hearing of witnesses.
300 Chapter 10: Legislature-General Output Group 3: Parliamentary Printing and Systems Description
This Output Group involves the provision of services which:
• meet the printing needs of Parliament, including the production of Parliamentary Papers, Votes and Proceedings, Notice Papers and Bills;
• facilitate the maintenance of computerised system links between the Printing Authority of Tasmania and the Parliament; and
• meet the computer requirements of the Parliamentary Reporting Service and Members within both Houses of Parliament.
Table 10.4: Summary Financial Information - Output Group 3 2003-04) 2004-05) Parliamentary Printing and Systems Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 555) 555) ....) TOTAL 555) 555) ....)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 77) 80) 3.9) Other Employee Related Expenses 1) 1) ....) Superannuation 8) 8) ....) Supplies and Consumables Communications 29) 29) ....) Information Technology 48) 48) ....) Travel and Transport 1) 1) ....) Other Supplies and Consumables 388) 388) ....) TOTAL 552) 555) 0.5)
EXPENSE BY OUTPUT 3.1 Parliamentary Printing 393) 393) ....) 3.2 Parliamentary Systems 159) 162) 1.9) TOTAL 552) 555) 0.5)
Chapter 10: Legislature-General 301 Major Issues and Initiatives for 2004-05
The printing costs of Parliament depend entirely on the number of sitting days/hours of both Houses of Parliament. The consequent amount of material required to be printed is generated directly by sessions of Parliament.
With advances in information technology, information dissemination is increasingly being performed by electronic means and Legislature-General officers are reviewing this on an ongoing basis.
Output Group 4: Joint Services Description
This Output Group provides the financial management services relating to:
• Legislature-General, including the Joint House Committee and other functional areas not directly under the control of either House of Parliament;
• the Clerks of both Houses of Parliament; and
• other branch heads.
Services provided include:
• the provision of purchasing and maintenance services for the Parliamentary complex, gardens and other offices (including rentals, security, cleaning and communication services);
• provision of administrative services to the Clerks of both Houses, including responsibility for all human resources and financial administration;
• services not directly related to the Legislative Council or House of Assembly for certain Parliamentary Committees and the Leader of the Opposition; and
• payments for services administered on behalf of the Legislative Council and the House of Assembly.
302 Chapter 10: Legislature-General Table 10.5: Summary Financial Information - Output Group 4 2003-04) 2004-05) Joint Services Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 1 762) 1 855) 5.3) Sales of Goods and Services 172) 172) ....) TOTAL 1 934) 2 027) 4.8)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 606) 630) 4.0) Other Employee Related Expenses 121) 121) ....) Superannuation 59) 61) 3.4) Depreciation and Amortisation 310) 310) ....) Grants and Transfer Payments1 44) 59) 34.1) Supplies and Consumables Maintenance and Property Services2 855) 940) 9.9) Communications 19) 19) ....) Information Technology 9) 9) ....) Travel and Transport 17) 17) ....) Advertising and Promotion 3) 3) ....) Other Supplies and Consumables 135) 135) ....) TOTAL 2 178) 2 304) 5.8)
EXPENSE BY OUTPUT 4.1 Buildings and Operations Management1 1 343) 1 437) 7.0) 4.2 Joint Management Services 173) 178) 2.9) 4.3 Services to Members 565) 577) 2.1) 4.4 Corporate Services for Parliamentary Agencies2 97) 112) 15.5) TOTAL 2 178) 2 304) 5.8)
Notes: 1. The increase in Grants and Transfer Payments reflects an increase in the grant paid to the Commonwealth Parliamentary Association (Tasmanian Branch) to reflect the current costs of operations. 2. The increase in expenses reflects increases in rates charged by Local Government arising from the implementation of State and Local Government Financial Reform measures and an increase in rental charges.
Chapter 10: Legislature-General 303 DETAILED BUDGET STATEMENTS
Table 10.7: Output Group Expense Summary for the Legislature-General 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) Output Group 1 - Parliamentary Reporting Service 1.1 Production and Printing of Parliamentary Reports 813) 840) 3.3) 813) 840) 3.3) Output Group 2 - Parliamentary Library Service 2.1 Parliamentary Library Service 600) 621) 3.5) 600) 621) 3.5) Output Group 3 - Parliamentary Printing and Systems 3.1 Parliamentary Printing 393) 393) ....) 3.2 Parliamentary Systems 159) 162) 1.9) 552) 555) 0.5) Output Group 4 - Joint Services 4.1 Buildings and Operations Management1 1 343) 1 437) 7.0) 4.2 Joint Management Services 173) 178) 2.9) 4.3 Services to Members 565) 577) 2.1) 4.4 Corporate Services for Parliamentary Agencies2 97) 112) 15.5) 2 178) 2 304) 5.8)
TOTAL AGENCY 4 143) 4 320) 4.3)
Notes: 1. The increase reflects increases in rates charged by Local Government arising from the implementation of State and Local Government Financial Reform measures and an increase in rental charges. 2. The increase reflects an increase in the grant paid to the Commonwealth Parliamentary Association (Tasmanian Branch) to reflect the current costs of operations.
304 Chapter 10: Legislature-General Table 10.8: Statement of Financial Performance for the Legislature-General 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 3 762) 3 848) 2.2) Sales of Goods and Services 172) 172) ....) TOTAL 3 934) 4 020) 2.1)
OPERATING EXPENSES Employee Entitlements 1 982) 2 053) 3.5) Superannuation 168) 174) 3.5) Depreciation and Amortisation 310) 310) ....) Grants and Transfer Payments1 44) 59) 34.0) Supplies and Consumables2 1 639) 1 724) 5.1) TOTAL 4 143) 4 320) 4.2)
NET OPERATING RESULT (209) (300) 43.5)
Notes: 1. The increase in Grants and Transfer Payments reflects an increase in the grant paid to the Commonwealth Parliamentary Association (Tasmanian Branch) to reflect the current costs of operations. 2. The increase in Supplies and Consumables reflects increases in rates charged by Local Government arising from the implementation of State and Local Government Financial Reform measures and an increase in rental charges.
Chapter 10: Legislature-General 305 Table 10.9: Statement of Financial Position as at 30 June for the Legislature-General 2004 2005 Budget) Budget) Variation) $'000) $'000) %) CURRENT ASSETS Cash 5) 24) 380.0) Receivables 28) 46) 64.2) Prepayments 14) 10) (28.6) Other 26) 23) (11.6) TOTAL 73) 103) 41.0)
NON-CURRENT ASSETS Land and Buildings 12 698) 12 107) (4.7) Plant and Equipment 439) 523) 19.1) TOTAL 13 137) 12 630) (3.9)
TOTAL ASSETS 13 210) 12 733) (3.7)
CURRENT LIABILITIES Payables 161) 151) (6.3) Employee Entitlements1 385) 215) (44.2) TOTAL 546) 366) (33.0)
NON-CURRENT LIABILITIES Employee Entitlements1 41) 256) 524.3) TOTAL 41) 256) 524.3)
TOTAL LIABILITIES 587) 622) 5.9)
NET ASSETS 12 623) 12 111) (4.1)
Note: 1. The change in Employee Entitlements represents a re-assessment of the apportionment of the liability between Current and Non-Current Liabilities.
306 Chapter 10: Legislature-General Table 10.10: Statement of Cash Flows for the Legislature-General 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) CASH FLOWS FROM OPERATING ACTIVITIES Receipts Revenue from Government Appropriation 3 762) 3 848) 2.2) Sales of Goods and Services 172) 172) ....) Payments Employee Entitlements (2 021) (2 013) (0.4) Superannuation (180) (174) (3.4) Grants and Transfer Payments1 (44) (59) 34.0) Supplies and Consumables2 (1 639) (1 724) 5.1) NET CASH FROM/(USED IN) OPERATING ACTIVITIES 50) 50) ....)
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of Fixed Assets (50) (50) ....) NET CASH FROM/(USED IN) INVESTING ACTIVITIES (50) (50) ....)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held ....) ....) ....)
Cash at the Beginning of Reporting Period 5) 24) 380.0)
Cash at the End of Reporting Period 5) 24) 380.0)
Notes: 1. The increase in Grants and Transfer Payments reflects an increase in the grant paid to the Commonwealth Parliamentary Association (Tasmanian Branch) to reflect the current costs of operations. 2. The increase in Supplies and Consumables reflects increases in rates charged by Local Government arising from the implementation of State and Local Government Financial Reform measures and an increase in rental charges.
Chapter 10: Legislature-General 307 Table 10.10: Statement of Cash Flows for the Legislature-General (continued) 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) ADMINISTERED ITEMS
CASH FLOWS FROM OPERATING ACTIVITIES Receipts GST Receipts 199) 199) ....) Payments GST Payments (199) (199) ....) NET CASH FROM/(USED IN) OPERATING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM INVESTING ACTIVITIES NET CASH FROM/(USED IN) INVESTING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held ....) ....) ....)
Cash at the Beginning of Reporting Period ....) ....) ....)
Cash at the End of Reporting Period ....) ....) ....)
308 Chapter 10: Legislature-General Table 10.11: Reconciliation of Operating Expenses to Consolidated Fund Appropriation 2003-04) 2004-05) Budget) Budget) $'000) $'000)
Total Operating Expenses 4 143) 4 320
Adjustments for Non-Cash Items Depreciation (310) (310) Employee Entitlements 51 (40) Supplies and Consumables ....) .... Total Cash Cost of Outputs 3 884 3 970
Other Funding Sources (172) (172) Purchase of Capital Items 50) 50
Total Consolidated Fund Appropriation 3 762) 3 848
Chapter 10: Legislature-General 309
11 MINISTERIAL AND PARLIAMENTARY SUPPORT
AGENCY OUTLINE
Ministerial and Parliamentary Support provides allowances, facilities and support services (other than those provided by the House of Assembly and the Legislative Council) to Ministers and other Members of the House of Assembly. Some support services are also provided to Members of the Legislative Council.
STRATEGIC FOCUS
The strategic focus is to assist the Ministers and Members to carry out their ministerial and parliamentary roles and responsibilities.
KEY STRATEGIES
In order to achieve this focus, the following are provided:
• allowances for Ministers and Members;
• non-salary funding for travel, transport and entertainment; and
• staff, communications, office accommodation, information technology and other supplies.
Chapter 11: Ministerial and Parliamentary Support 311 SUMMARY AGENCY 2004-05 BUDGET INFORMATION
Financial Summary
Table 11.1: Summary Financial Information for Ministerial and Parliamentary Support 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 13 269) 13 401) 1.0) Reserved by Law 550) 587) 6.7) TOTAL 13 819) 13 988) 1.2)
OPERATING EXPENSES Support for Members of Parliament 13 625) 14 059) 3.2) TOTAL 13 625) 14 059) 3.2)
NET OPERATING RESULT 194) (71) (136.6)
312 Chapter 11: Ministerial and Parliamentary Support DETAILED OUTPUT GROUP 2004-05 BUDGET INFORMATION
The individual Outputs of Ministerial and Parliamentary Support are provided under the following Output Group:
Output Group 1: Support for Members of Parliament.
Output Group 1: Support for Members of Parliament Description
Allowances, facilities and support services including staff, travel, communications, office accommodation, information technology and other supplies are provided to the following:
• Ministers;
• other Government Members of the House of Assembly; and
• Members of the House of Assembly belonging to non-Government political parties.
Transport services are provided to all Ministers, the Speaker, the Leader of the Liberal Opposition, the Leader of the Tasmanian Greens Opposition in the House of Assembly, and the President and Leader for the Government in the Legislative Council.
Certain facilities and services are also provided to some Members of the Legislative Council.
Chapter 11: Ministerial and Parliamentary Support 313 Table 11.2: Summary Financial Information - Output Group 1 2003-04) 2004-05) Support for Members of Parliament Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 13 269) 13 401) 1.0) Reserved by Law1 550) 587) 6.7) TOTAL 13 819) 13 988) 1.2)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 7 872) 8 240) 4.7) Other Employee Related Expenses 902) 934) 3.5) Superannuation 840) 829) (1.3) Depreciation and Amortisation2 17) 62) 264.7) Supplies and Consumables Consultants 20) 20) ....) Maintenance and Property Services 1 717) 1 717) ....) Communications 424) 424) ....) Information Technology 258) 258) ....) Travel and Transport 1 150) 1 150) ....) Other Supplies and Consumables 425) 425) ....) TOTAL 13 625) 14 059) 3.2)
EXPENSE BY OUTPUT 1.1 Support for Ministers 10 744) 11 066) 3.0) 1.2 Support for Other Members of Parliament 2 881) 2 993) 3.9) TOTAL 13 625) 14 059) 3.2)
Notes: 1. The increase in Reserved by Law provides for the additional salary payable in accordance with the Parliamentary Salaries and Allowances Act 1973 to the additional Minister of the Crown appointed in March 2004. 2. The increase in Depreciation and Amortisation reflects additional depreciation associated with a secure web site developed to enable the sharing of information by ministerial offices and computing infrastructure.
314 Chapter 11: Ministerial and Parliamentary Support DETAILED BUDGET STATEMENTS
Table 11.3: Output Group Expense Summary for Ministerial and Parliamentary Support 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) Premier Output Group 1 - Support for Members of Parliament 1.1 Support for Ministers 10 744) 11 066) 3.0) 1.2 Support for Other Members of Parliament 2 881) 2 993) 3.9) 13 625) 14 059) 3.2)
TOTAL AGENCY 13 625) 14 059) 3.2)
Chapter 11: Ministerial and Parliamentary Support 315 Table 11.4: Statement of Financial Performance for Ministerial and Parliamentary Support 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 13 269) 13 401) 0.9) Reserved by Law1 550) 587) 6.7) TOTAL 13 819) 13 988) 1.2)
OPERATING EXPENSES Employee Entitlements 8 774) 9 174) 4.5) Superannuation 840) 829) (1.4) Depreciation and Amortisation2 17) 62) 264.7) Supplies and Consumables 3 994) 3 994) ....) TOTAL 13 625) 14 059) 3.1)
NET OPERATING RESULT 194) (71) (136.6)
Notes: 1. The increase in Reserved by Law provides for the additional salary payable in accordance with the Parliamentary Salaries and Allowances Act 1973 to the additional Minister of the Crown appointed in March 2004. 2. The increase in Depreciation and Amortisation reflects additional depreciation associated with a secure web site developed to enable the sharing of information by ministerial offices and computing infrastructure.
316 Chapter 11: Ministerial and Parliamentary Support Table 11.5: Statement of Financial Position as at 30 June for Ministerial and Parliamentary Support 2004) 2005) Budget) Budget) Variation) $'000) $'000) %) CURRENT ASSETS Cash1 147) 123) (16.4) Prepayments 88) 95) 7.9) TOTAL 235) 218) (7.3)
NON-CURRENT ASSETS Plant and Equipment2 190) 339) 78.4) TOTAL 190) 339) 78.4)
TOTAL ASSETS 425) 557) 31.0)
CURRENT LIABILITIES Payables 94) 101) 7.4) Employee Entitlements 644) 704) 9.3) Accrued Expenses 5) ....) (100.0) TOTAL 743) 805) 8.3)
NON-CURRENT LIABILITIES Employee Entitlements 637) 690) 8.3) TOTAL 637) 690) 8.3)
TOTAL LIABILITIES 1 380) 1 495) 8.3)
NET ASSETS (955) (938) (1.8)
Notes: 1. The reduction in Cash reflects the projected expenditure of retained funds to meet Ministerial transport expenses. 2. The increase in Plant and Equipment reflects the development of a secure web site to enable the sharing of information by ministerial offices and the acquisition of associated computing infrastructure.
Chapter 11: Ministerial and Parliamentary Support 317 Table 11.5: Statement of Financial Position as at 30 June for Ministerial and Parliamentary Support (continued) 2004) 2005) Budget) Budget) Variation) $'000) $'000) % ADMINISTERED ITEMS
CURRENT ASSETS Tax Assets 32) 77) 140.6) TOTAL 32) 77) 140.6)
NON-CURRENT ASSETS TOTAL ....) ....) ....)
TOTAL ASSETS 32) 77) 140.6)
CURRENT LIABILITIES TOTAL ....) ....) ....)
NON-CURRENT LIABILITIES TOTAL ....) ....) ....)
TOTAL LIABILITIES ....) ....) ....)
NET ASSETS 32) 77) 140.6)
318 Chapter 11: Ministerial and Parliamentary Support Table 11.6: Statement of Cash Flows for Ministerial and Parliamentary Support 2003-04) 2003-04) Budget) Budget) Variation) $'000) $'000) %) CASH FLOWS FROM OPERATING ACTIVITIES Receipts Revenue from Government Appropriation 13 269) 13 401) 0.9) Reserved by Law1 550) 587) 6.7) Payments Employee Entitlements (8 993) (9 173) 2.0) Superannuation (840) (829) (1.4) Supplies and Consumables (3 994) (3 994) ....) NET CASH FROM/(USED IN) OPERATING ACTIVITIES (8) (8) ....)
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of Fixed Assets (17) (17) ....) NET CASH FROM/(USED IN) INVESTING ACTIVITIES (17) (17) ....)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held (25) (25) ....)
Cash at the Beginning of Reporting Period 172) 148) (14.0)
Cash at the End of Reporting Period 147) 123) (16.4)
Note: 1. The increase in Reserved by Law provides for the additional salary payable in accordance with the Parliamentary Salaries and Allowances Act 1973 to the additional Minister of the Crown appointed in March 2004.
Chapter 11: Ministerial and Parliamentary Support 319 Table 11.6: Statement of Cash Flows for Ministerial and Parliamentary Support (continued) 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) ADMINISTERED ITEMS
CASH FLOWS FROM OPERATING ACTIVITIES Receipts GST Receipts 330) 330) ....) Payments GST Payments (330) (330) ....) NET CASH FROM/(USED IN) OPERATING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM INVESTING ACTIVITIES NET CASH FROM/(USED IN) INVESTING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held ....) ....) ....)
Cash at the Beginning of Reporting Period ....) ....) ....)
Cash at the End of Reporting Period ....) ....) ....)
320 Chapter 11: Ministerial and Parliamentary Support Table 11.7: Reconciliation of Operating Expenses to Consolidated Fund Appropriation 2003-04 2004-05 Budget Budget $'000 $'000
Total Operating Expenses 13 625) 14 059)
Adjustments for Non-cash Items Depreciation (17) (62) Employee Entitlements 219 (1) Total Cash Cost of Outputs 13 827) 13 996
Other Funding Sources (25) (25) Purchase of Capital Items 17) 17)
Total Consolidated Fund Appropriation 13 819) 13 988)
Chapter 11: Ministerial and Parliamentary Support 321
12 OFFICE OF THE GOVERNOR
AGENCY OUTLINE
His Excellency the Governor represents the Crown in Tasmania. The role of the Governor is defined by the Letters Patent constituting his Office, legislation and constitutional conventions. In essence, the Governor's function is to protect the Constitution, secure the orderly transition of Governments, facilitate the work of the Parliament and the Government, act as a non-political representative of the State, and to participate in the affairs of the Tasmanian community.
Apart from his constitutional functions, the Governor acts on behalf of Tasmania in many other ways. Each year, the Governor welcomes and extends hospitality to heads of state, ambassadors and other official visitors, and thousands of other interstate and international visitors to Tasmania, particularly those attending conferences and conventions. The Governor also invests members of the community with honours, participates in official public events, and involves himself in the activities of large numbers of organisations throughout the State.
In performing these functions, the Governor, on behalf of Tasmania, recognises achievement, encourages worthwhile endeavours, honours our history, reinforces our cultural identity and reaffirms the essential values of our society.
The Office of the Governor provides services through giving the necessary support for the Governor to carry out his constitutional, administrative, ceremonial and community responsibilities.
The Office:
• provides the Governor with advice and administrative support;
• prepares official documents and correspondence, and assists with writing speeches;
• arranges official meetings and ceremonies, including the Executive Council, Royal Assents, the Opening of Parliament, the swearing in of the Premier and Ministers, and investitures;
• organises the program of events and appointments for the Governor and his spouse;
• arranges and caters for official dinners and receptions; and
• maintains the buildings, gardens and grounds of Government House.
The Office's mission is to:
• provide a high standard of policy advice and administrative support to the Governor, including the organisation of constitutional and ceremonial duties and his program of community engagements;
• facilitate the efficient and effective interaction between the Office of the Governor, the Parliament, the Executive and the State Service; and
• maintain the Government House estate in a sound and attractive state.
Chapter 12: Office of the Governor 323 STRATEGIC FOCUS
The strategic focus of the Office is on achieving, or assisting with achieving, the following major Government outcomes:
• safeguarding the integrity of the State's democratic system of government;
• promoting community involvement in government;
• through speeches, visits, functions and other events, fostering activities in rural areas; encouraging young people's involvement in the community; supporting activities which promote a multi-cultural, diverse and tolerant society; strengthening Aboriginal culture and identity; and stimulating culture and the arts;
• promoting the State's exports and its tourism industry; and
• protecting and maintaining the heritage values of Government House and its grounds.
KEY STRATEGIES
In order to achieve or assist in achieving the above outcomes, the Office of the Governor is implementing the following key strategies:
• continuing to provide the Governor and his spouse with the maximum possible support for their official duties; and
• ensuring proper planning and appropriate works to maintain the fabric and historical integrity of Government House and its grounds.
2004-05 MAJOR INITIATIVES
As part of the above key strategies, the Office of the Governor is implementing the following major initiatives:
• a continuing review of the Governor's program of activities with particular attention to the promotion of the State in Tasmania, interstate and overseas; and
• reviewing asset management, maintenance and restoration plans for the Government House estate.
324 Chapter 12: Office of the Governor SUMMARY AGENCY 2004-05 BUDGET INFORMATION
Financial Summary
Table 12.1: Summary Financial Information for the Office of the Governor 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 1 843) 2 235) 21.3) Reserved by Law2 217) 490) 125.8) TOTAL 2 060) 2 725) 32.3)
OPERATING EXPENSES The Office of the Governor1,2 2 157) 2 862) 32.7) Other 8) 8) ....) TOTAL 2 165) 2 870) 32.6)
NET OPERATING RESULT (105) (145) 38.1)
Notes: 1. The increase in Consolidated Fund Annual Appropriation is the result of full increased costs associated with the changes in the taxation regime as a result of changes to Commonwealth Government taxation laws relating to Governors and the inclusion of continuing maintenance costs previously funded under the Capital Investment Program – Essential Maintenance. 2. The increase in Reserved by Law funding reflects increased costs associated with full taxation of the Governor's salary
Chapter 12: Office of the Governor 325 DETAILED OUTPUT GROUP 2004-05 BUDGET INFORMATION
The individual Output of the Office of the Governor is provided under Output Group 1: The Office of the Governor.
Output Group 1: The Office of the Governor Description
The focus of this Output Group is the Governor's constitutional role in the operation of the Parliament and the Executive, his official role in the affairs of the Tasmanian community and the preservation of the Government House estate as an important part of Tasmania's heritage.
The Output Group consists of the single Output entitled 'Support of the Governor', which has as its primary objective the efficient and effective interaction between the Office of the Governor, the Parliament, the Executive, the State Service and the Tasmanian community. It has a further objective, increasing in emphasis in recent years, of cooperating closely with all arms of government and the community to promote the State of Tasmania to a widening range of international guests and other visitors to the State.
The services provided under this Output Group are delivered by the Governor, his support staff and the facilities of Government House.
326 Chapter 12: Office of the Governor Table 12.2: Summary Financial Information - Output Group 1 2003-04) 2004-05) The Office of the Governor Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 1 835) 2 227) 21.4) Reserved by Law2 217) 490) 125.8) TOTAL 2 052) 2 717) 32.4)
OPERATING EXPENSES Employee Entitlements Salaries and Wages3 1 441) 1 769) 22.8) Other Employee Related Expenses4 90) 194) 115.6) Superannuation 138) 152) 10.1) Depreciation and Amortisation 125) 125) ....) Supplies and Consumables Consultants 2) 2) ....) Maintenance and Property Services5 80) 229) 186.3) Communications 27) 28) 3.7) Information Technology 27) 28) 3.7) Travel and Transport6 39) 134) 243.6) Advertising and promotion 2) 2) ....) Other Supplies and Consumables7 186) 199) 7.0) TOTAL 2 157) 2 862) 32.7)
EXPENSE BY OUTPUT 1.1 Support of the Governor 2 157) 2 862) 32.7) TOTAL 2 157) 2 862) 32.7)
Notes: 1. The increase in Consolidated Fund Annual Appropriation is the result of increased costs associated with changes to the Commonwealth Government taxation laws relating to Governors, and the inclusion of continuing maintenance costs previously funded under the Capital Investment Program-Essential Maintenance program. 2. The increase in Reserved by Law funding reflects increase costs associated with full taxation of the Governor's salary. 3. The increase in Salaries and Wages reflects increased costs associated with changes to staffing requirements and arrangements with the appointment of the new Governor. 4. The increase in Other Employee Related Expenses reflects increased costs associated with changes in taxation regime particularly Fringe Benefits Tax. 5. The increase in Maintenance and Property Services reflects the inclusion of funding, previously funded from the Capital Investment Program–Essential Maintenance, for the maintenance and management of the Government House estate. 6. The increase in Travel and Transport reflects increased costs associated with initiatives and an increased effort in promoting the State interstate and overseas. 7. The increase in Other Supplies and Consumables reflects increased costs associated with a larger family residing at Government House.
Chapter 12: Office of the Governor 327 Major Issues and Initiatives for 2004-05
Major issues and initiatives for this Output Group for 2004-05 include:
• responding to the Governor's continued emphasis on promoting the State, particularly interstate and overseas;
• maintaining operational efficiency in the light of a significant workload and within tight budgetary constraints; and
• maintaining the Government House estate.
Performance Information
The Office of the Governor has a single Output, namely to provide support for the Governor. The Office has successfully preformed this Output by:
• meeting the Governor's expectations in assisting him in meeting his constitutional and legal responsibilities;
• meeting the Governor and his spouse's expectations in the organisation of their official program and the administration of the household; and
• maintaining the Government House estate to a very high standard.
Capital Investment Program
Table 12.3: Capital Investment Program 2004-05) Budget) $'000) Continuing Projects Building Services Maintenance 8)
TOTAL CAPITAL INVESTMENT PROGRAM 8)
328 Chapter 12: Office of the Governor DETAILED BUDGET STATEMENTS
Table 12.4: Output Group Expense Summary for the Office of the Governor 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) Output Group 1 - The Office of the Governor 1.1 Support of the Governor1 2 157) 2 862) 32.7) 2 157) 2 862) 32.7)
Other 8) 8) ....)
TOTAL AGENCY 2 165) 2 870) 32.6)
Note: 1. The increase in Consolidated Fund Annual Appropriation is the result of increased costs associated with changes to the Commonwealth Government taxation laws relating to Governors, the inclusion of continuing maintenance costs previously funded under the CIP-EM program, Travel and Transport and increased costs associated with changes to staffing requirements and arrangement of the new Governor.
Chapter 12: Office of the Governor 329 Table 12.5: Statement of Financial Performance for the Office of the Governor 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 1 843) 2 235) 21.2) Reserved by Law2 217) 490) 125.8) TOTAL 2 060) 2 725) 32.2)
OPERATING EXPENSES Employee Entitlements3 1 531) 1 963) 28.2) Superannuation3 138) 152) 10.1) Depreciation and Amortisation 125) 125) ....) Supplies and Consumables4 371) 630) 69.8) TOTAL 2 165) 2 870) 32.5)
NET OPERATING RESULT (105) (145) 38.0)
Notes: 1. The increase in Consolidated Fund Annual Appropriation is the result of full increased costs associated with the changes in the taxation regime as a result of changes to Commonwealth Government taxation laws relating to Governors and the inclusion of continuing maintenance costs previously funded under the Capital Investment Program – Essential Maintenance program. 2. The increase in Reserved by Law funding reflects increase costs associated with full taxation of the Governor's salary. 3. The increase in Employee Entitlements and Superannuation reflects increased costs associated with changes to staffing requirements and arrangements with the appointment of the new Governor. 4. The increase in Other Supplies and Consumables reflects increased costs associated with a larger family residing at Government House, the increased costs associated with changes in taxation regime particularly Fringe Benefits Tax, and the inclusion of funding, previously funded from the Capital Investment Program–Essential Maintenance, for the maintenance and management of the Government House estate.
330 Chapter 12: Office of the Governor Table 12.6: Statement of Financial Position as at 30 June for the Office of the Governor 2004 2005 Budget Budget Variation) $'000) $'000) %) CURRENT ASSETS Cash 1) 1) ....) Prepayments 2) 2) ....) Tax Assets 9) 9) ....) TOTAL 12) 12) ....)
NON-CURRENT ASSETS Land and Buildings1 15 862) 16 608) 4.7) Plant and Equipment 142) 137) (3.6) Other2 866) ....) (100.0) TOTAL 16 870) 16 745) (0.8)
TOTAL ASSETS 16 882) 16 757) (0.8)
CURRENT LIABILITIES Payables 35) 35) ....) Employee Entitlements 160) 170) 6.2) TOTAL 195) 205) 5.1)
NON-CURRENT LIABILITIES Employee Entitlements 164) 174) 6.0) TOTAL 164) 174) 6.0)
TOTAL LIABILITIES 359) 379) 5.5)
NET ASSETS 16 523) 16 378) (0.9)
Notes: 1. The increase in Land and Buildings relates to the inclusion of Other Assets into this category from 2004-05. 2. The decrease in Other Assets relates to the reclassification of Other Assets to Land and Buildings from 2004-05.
Chapter 12: Office of the Governor 331 Table 12.7: Statement of Cash Flows for the Office of the Governor 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) CASH FLOWS FROM OPERATING ACTIVITIES Receipts Revenue from Government Appropriation1 1 843) 2 235) 21.2) Reserved By Law2 217) 490) 125.8) Payments Employee Entitlements3 (1 550) (1 943) 25.3) Superannuation3 (139) (152) 9.3) Supplies and Consumables4 (371) (630) 69.8) NET CASH FROM/(USED IN) OPERATING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM INVESTING ACTIVITIES NET CASH FROM/(USED IN) INVESTING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held ....) ....) ....)
Cash at the Beginning of Reporting Period 1) 1) ....)
Cash at the End of Reporting Period 1) 1) ....)
Notes: 1. The increase in Consolidated Fund Annual Appropriation is the result of full increased costs associated with the changes in the taxation regime as a result of changes to Commonwealth Government taxation laws relating to Governors and the inclusion of continuing maintenance costs previously funded under the Capital Investment Program – Essential Maintenance program. 2. The increase in Reserved by Law funding reflects increase costs associated with full taxation of the Governor's salary. 3. The increase in Employee Entitlements and Superannuation reflects increased costs associated with changes to staffing requirements and arrangements with the appointment of the new Governor. 4. The increase in Other Supplies and Consumables reflects increased costs associated with a larger family residing at Government House, the increased costs associated with changes in taxation regime particularly Fringe Benefits Tax, and the inclusion of funding, previously funded from the Capital Investment Program–Essential Maintenance, for the maintenance and management of the Government House estate.
332 Chapter 12: Office of the Governor Table 12.7: Statement of Cash Flows for the Office of the Governor (continued) 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) ADMINISTERED ITEMS
CASH FLOWS FROM OPERATING ACTIVITIES Receipts GST Receipts 60) 60) ....) Payments GST Payments (60) (60) ....) NET CASH FROM/(USED IN) OPERATING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM INVESTING ACTIVITIES NET CASH FROM/(USED IN) INVESTING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held ....) ....) ....)
Cash at the Beginning of Reporting Period ....) ....) ....)
Cash at the End of Reporting Period ....) ....) ....)
Table 12.8: Reconciliation of Operating Expenses to Consolidated Fund Appropriation 2003-04 2004-05 Budget) Budget) $'000) $'000)
Total Operating Expenses 2 165 2870
Adjustments for Non-Cash Items Depreciation (125) (125) Employee Entitlements 20 20 Total Cash Cost of Outputs 2 060 2 725
Total Consolidated Fund Appropriation 2 060 2 725
Chapter 12: Office of the Governor 333
13 DEPARTMENT OF POLICE AND PUBLIC SAFETY
AGENCY OUTLINE
The Department of Police and Public Safety is responsible to the Minister for Police and Public Safety and includes Tasmania Police, the State Emergency Service and Forensic Science Services Tasmania. Tasmania Police comprises four geographic districts, assisted by specialised police support units.
The Department of Police and Public Safety plays a lead role in the achievement of the Tasmania Together Goal of 'having a community where people feel safe and are safe in all aspects of their lives'.
STRATEGIC FOCUS
The Strategic Directions established by the Department are focused at ensuring Tasmania remains 'The Safest State in the Nation'. Reassurance is one of the key elements within the strategic framework, along with readiness, responsiveness and accountability. High profile and visible police presence is essential in reassuring the community as well as timely information on the success in reducing crime and increasing clearance rates.
A heightened level of readiness will be achieved through utilising scientific and technological advances and positioning resources to enable the most appropriate response to calls for assistance from the community. By enhancing early intervention approaches, particularly with 'at risk' families and young people, the Department will ensure it is responsive to the needs of the community. This responsiveness will involve consulting widely and developing strategies to resolve local issues. The Department will promote education and awareness initiatives to strengthen community disaster preparedness.
The focus on providing safer communities will be enhanced through focusing on intelligence led policing by targeting both crimes and criminals. Public order issues and intervention in domestic violence issues will be a particular target.
The Department will build on the present Corporate Performance regime involving benchmarks and performance indicators. This will involve developing an organisational culture that embraces personal accountability for performance and strengthening supervisory accountability at all levels. The partnership with the University of Tasmania involving tertiary accreditation will continue with the Department striving to achieve recognition of policing as a profession.
Chapter 13: Police and Public Safety 335 KEY STRATEGIES
In order to achieve or assist in the achievement of the above Outcomes, the Department of Police and Public Safety is implementing the following priorities:
• continuation of early intervention programs and pro-active approaches to support 'at risk' young people and families;
• reducing assaults in public places;
• programs to further reduce the incidence and effect of property crime;
• programs to reduce the number of serious injury motor vehicle crashes; and
• emergency management strategies that will enhance community safety through mitigating against priority risks and supporting volunteers.
2004-05 MAJOR INITIATIVES
As part of the key strategies, the Department of Police and Public Safety is implementing the following major initiatives:
• recruitment to enable police numbers to be maintained including operational police, state security unit and requirements for 'Safe at Home' – A Criminal Justice Framework for Responding to Family Violence in Tasmania;
• implementation of the 'SES in Partnership' initiative providing a 67.4 per cent increase in funding to the SES in 2004-05. This funding will provide:
− substantial upgrades to Road Accident Rescue vehicles and equipment, operated by local SES units;
− the replacement and upgrade of volunteer equipment including uniforms and communications equipment;
− the provision of storm damage and general rescue equipment; and
− ensuring our volunteers are the best trained in the nation through the provision of training resources and packages together with computerised training data bases;
• continuation of Project U-Turn aimed at addressing recidivism in motor vehicle theft, with a particular emphasis on diversionary strategies for young offenders. The Project U-Turn initiative will be funded by Government to carry on the successful program which has been in pilot for the past two years. Project U-Turn is a best practice diversionary program which aims to break the cycle of motor vehicle theft offending through engaging participants in hands on mechanical training while addressing life-skills and personal development issues;
• introduction of a pro-arrest, pro-prosecution, integrated criminal justice response to family violence through 'Safe at Home' – A Criminal Justice Framework for Responding to Family Violence in Tasmania. The 'Safe at Home' initiative is a whole-of-government initiative to be implemented by the Departments of Justice, Health and Human Services, Premier and Cabinet and Police and Public Safety. Funding provided to Police and Public Safety will result in the establishment of six teams of police officers to provide a range of crisis and safety services to the victims of family violence. In addition the provision of
336 Chapter 13: Police and Public Safety additional prosecutors to deal with family violence orders is made possible through this Budget initiative;
• providing operational Police with appropriate protective equipment through the replacement of existing ballistic vests and protective equipment in the continually changing operational setting;
• continued enhancement of the illicit drug diversion strategy;
• continued enhancement of the capability to prepare for terrorism, transnational crime and electronic crime; and
• ongoing enhancement of technologies to improve operational policing service delivery.
Chapter 13: Police and Public Safety 337 SUMMARY AGENCY 2004-05 BUDGET INFORMATION
Financial Summary
Table 13.1: Summary Financial Information for the Department of Police and Public Safety 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 127 123) 135 357) 6.5) Other2 350) 664) 89.7) Other Revenue 4 219) 3 982) (5.6) TOTAL 131 692) 140 003) 6.3)
OPERATING EXPENSES Policing Support to the Community3 67 239) 75 708) 12.6) Crime Detection and Investigation4 30 708) 32 466) 5.7) Traffic Law Enforcement and Road Safety5 13 779) 14 414) 4.6) Protection of Primary Industry and Fisheries Resources6 5 090) 5 390) 5.9) Emergency Management7 1 680) 2 412) 43.6) Support to Judicial Services8 7 041) 7 806) 10.9) Ministerial Support and Information Services 9 2 409) 2 533) 5.1) Other10 376) 866) 130.3) TOTAL 128 322) 141 595) 10.3)
NET OPERATING RESULT11 3 370) (1 592) (147.2)
Notes: 1. The increase in Annual Appropriation reflects the Government's commitment of new initiative funding for 'Safe at Home', Project U-Turn and the State Emergency Service, and continued initiative funding to Counter Terrorism. In addition, the increase includes funding for the cost of council rate payments following State and Local Government Financial Reform, additional funding for the maintenance of current service delivery levels and costs associated with salary and wage indexation. 2. The amount carried forward from 2003-04 under section 8A(2) of the Public Account Act 1986 of $664 000 represents a carry forward of funding for the CrimTrac project. 3. The increase is largely due to new initiative expenditure for the 'Safe at Home' Project and continuing expenditure for Counter Terrorism, as well as an increase in funding for the cost of council rate payments following State and Local Government Financial Reform, additional funding for the maintenance of current service delivery levels and costs associated with salary and wage indexation. 4. The increase is largely due to an increase in continuing expenditure for Counter Terrorism, as well as an increase in funding for the cost of council rate payments following State and Local Government Financial Reform, additional funding for the maintenance of current service delivery levels and costs associated with salary and wage indexation.
338 Chapter 13: Police and Public Safety 5. The increase is due to the increased cost of council rate payments following State and Local Government Financial Reform, additional maintenance of current service delivery levels and costs associated with salary and wage indexation. 6. The increase is due to the increased cost of council rate payments following State and Local Government Financial Reform, additional maintenance of current service delivery levels and costs associated with salary and wage indexation. 7. The increase is due to new initiative costs associated with the State Emergency Service and costs associated with salary and wage indexation. 8. The increase is due to new initiative costs for 'Safe at Home' and Project U-Turn as well as increased cost of council rate payments following State and Local Government Financial Reform, additional cost of the maintenance of current service delivery levels and costs associated with salary and wage indexation. 9. The increase is due to an increase in the cost of council rate payments following State and Local Government Financial Reform, additional costs for the maintenance of current service delivery levels and costs associated with salary and wage indexation. 10. The increase in Other relates to the expensed portion of the Capital Investment Program for Building Service Maintenance and Protective Equipment. Table 13.17 provides more details on the Capital Investment Program. 11. Table 13.19 provides more details of the Net Operating Result.
Chapter 13: Police and Public Safety 339 DETAILED OUTPUT GROUP 2004-05 BUDGET INFORMATION
The individual Outputs of the Department of Police and Public Safety are provided under the following Output Groups:
Output Group 1: Policing Support to the Community;
Output Group 2: Crime Detection and Investigation;
Output Group 3: Traffic Law Enforcement and Road Safety;
Output Group 4: Protection of Primary Industry and Fisheries Resources;
Output Group 5: Emergency Management;
Output Group 6: Support to Judicial Services; and
Output Group 7: Ministerial Support and Information Services.
Output Group 1: Policing Support to the Community Description
This Output Group is directed at maintaining and improving personal safety in the community, reducing the incidence of property offences as well as promoting community participation in managing public order, safety initiatives and crime prevention. In addition, a counter terrorism and transnational crime capability is provided in terms of planning and readiness (which will have impacts across this Output Group and Output Group 2: Crime Detection and Investigation).
This Output Group is achieved by undertaking such activities as:
• targeted patrols and task forces;
• responding to requests from the public;
• responding to incidents;
• licensing;
• dispute intervention;
• maintaining readiness for major incidents;
• crime prevention education and awareness;
• protective security;
• search and rescue;
• providing custodial care and safety; and
• policing public events.
340 Chapter 13: Police and Public Safety The focus is on programs which strengthen policing visibility in urban and rural communities. This involves programs such as Stop, Walk and Talk, CBD Patrols and Task Forces. In addition, strategies involve partnership with the community and community organizations which are aimed at reducing both the incidence and fear of crime in local communities.
Activities in this Output Group contribute to all of the Department's Outcomes.
Table 13.2: Summary Financial Information - Output Group 1 2003-04) 2004-05) Policing Support to the Community Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 68 597) 73 634) 7.3) Grants2 431) 197) (54.3) Sales of Goods and Services 909) 909) ....) TOTAL 69 937) 74 740) 6.9)
OPERATING EXPENSES Employee Entitlements Salaries and Wages3 42 190) 49 313) 16.9) Other Employee Related Expenses4 4 404) 4 661) 5.8) Superannuation3 4 501) 5 043) 12.0) Depreciation and Amortisation 647) 647) ....) Grants and Transfer Payments 712) 712) ....) Supplies and Consumables Maintenance and Property Services5 5 409) 5 708) 5.5) Other Supplies and Consumables 9 376) 9 624) 2.6) TOTAL 67 239) 75 708) 12.6)
EXPENSE BY OUTPUT 1.1 Support to the Community 67 239) 75 708) 12.6) TOTAL 67 239) 75 708) 12.6)
Notes: 1. The increase in Annual Appropriation reflects new initiative funding for 'Safe at Home' and an increase in continued initiative funding to Counter Terrorism. In addition, the increase includes funding for the cost of council rate payments following State and Local Government Financial Reform, additional funding for the maintenance of current service delivery levels and costs associated with salary and wage indexation. 2. The decrease in funding reflects an anticipated decline in Commonwealth funding relating to the cessation of the Project U-Turn Pilot Project. The continuation of the project from new initiative funding provided by the Government is detailed in Output Group 6. 3. The increase reflects the salary component of initiative funding provided and the costs associated with salary and wage indexation. In addition, there has been an accrual increase to this Output Group due to the effect of accrual adjustments relating to the 27th pay which occurred in 2003-04. 4. The increase relates to the costs associated with salary and wage indexation. 5. The increase primarily relates to the additional cost of council rate payments following State and Local Government Financial Reform.
Chapter 13: Police and Public Safety 341 Major Issues and Initiatives for 2004-05
Major issues and initiatives for this Output Group in 2004-05 include:
• participation in 'Safe at Home' – A Criminal Justice Framework for Responding to Family Violence in Tasmania involving pro-active intervention at an operational policing level;
• negotiation and implementation of policing partnerships and programs in urban and rural areas;
• continuation of Crime Prevention and Community Safety Council projects; and
• continued implementation of the whole-of-government illicit drug diversion program aimed at treating and rehabilitating drug offenders.
Table 13.3: Performance Information – Output Group 1 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Community satisfaction with policing services % 67 72 73 74 Community perception of police integrity % 78 77.5 79 80 Community satisfaction with police support for community programs % 75 75 76 76 Community satisfaction with police in dealing with public order problems % 49 52 53 54 Requests for policing services Number 140 000 143 000 144 000 144 000 Number of complaints against police Number 98 89 90 90 Number of deaths in police custody Number 0 0 0 0
Source: Department of Police and Public Safety and Steering Committee for the Review of Commonwealth/State Service Provision 2004, Report on Government Services 2004. Information sourced from Australian Bureau of Statistics National Community Attitude Survey on Policing published annually in the Report on Government Services. Performance Information Comments
Table 13.3 reports trend data for seven effectiveness indicators as reported on annually in the Steering Committee for the Review of Commonwealth/State Service Provision, Report on Government Services. Tasmania achieved its target of continuing to remain above the national average in community attitudes towards policing and below the national average in complaints against police and deaths in police custody. Complaints against police continued at their lowest level since accurate records commenced.
Output Group 2: Crime Detection and Investigation Description
This Output Group relates to the detection and apprehension of offenders against the person and property.
Crime detection strategies, together with legislative reform, link to the Government policy of safer and secure communities. These also link to a reduction in the fear of crime as well as to the Tasmania Together goal of having a community where people feel safe and are safe in all aspects of their lives.
342 Chapter 13: Police and Public Safety This is achieved by the deployment of police throughout the State to undertake such activities as:
• targeted/directed patrols;
• covert operations; and
• investigation of crime.
Other activities include:
• maintenance of criminal intelligence; and
• forensic and scientific services.
Activities in this Output Group contribute to the following Department Outcomes:
• a reduction in crime;
• a safe and secure community; and
• an effective community service.
Chapter 13: Police and Public Safety 343 Table 13.4: Summary Financial Information - Output Group 2 2003-04) 2004-05) Crime Detection and Investigation Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 29 398) 30 880) 5.0) Other2 350) 664) 89.7) Sales of Goods and Services 560) 560) ....) TOTAL 30 308) 32 104) 5.9)
OPERATING EXPENSES Employee Entitlements Salaries and Wages3 18 658) 20 005) 7.2) Other Employee Related Expenses3 1 782) 1 888) 5.9) Superannuation3 1 887) 1 976) 4.7) Depreciation and Amortisation 285) 285) ....) Grants and Transfer Payments 432) 432) ....) Supplies and Consumables Maintenance and Property Services4 788) 865) 9.8) Other Supplies and Consumables 6 876) 7 015) 2.0) TOTAL 30 708) 32 466) 5.7)
EXPENSE BY OUTPUT 2.1 Investigation of Crime 30 708) 32 466) 5.7) TOTAL 30 708) 32 466) 5.7)
Notes: 1. The increase in Annual Appropriation reflects an increase in continued initiative funding to Counter Terrorism. In addition, the increase includes funding for the cost of council rate payments following State and Local Government Financial Reform, additional funding for the maintenance of current service delivery levels and costs associated with salary and wage indexation. 2. Refer to Table 13.1, Note 2. 3. The increase reflects the salary component of continued initiative funding provided and the costs associated with salary and wage indexation. 4. Refer to Table 13.2, Note 5.
344 Chapter 13: Police and Public Safety Major Issues and Initiatives for 2004-05
Major issues and initiatives for this Output Group in 2004-05 include:
• continued enhancement of the integrated crime management strategy and intelligence led approach;
• continued task force activities focusing on assaults in public places;
• enhancement of DNA testing, analysis, recording and associated processing;
• enhancement of capability to investigate electronic crime; and
• improved criminal intelligence data collection and analysis.
Table 13.5: Performance Information – Output Group 2 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Number of recorded offences against the person Number 4 303 4 472 3 700 3 100 Number of recorded offences against property Number 44 452 41 482 39 000 38 000 Outcome of investigations – crime against the person clearance % 84 89 90 90 Outcome of investigations – property crime clearance % 20 25 26 27 Community perception of safety at home (TT)1 % 86 89 90 90 Community perception of safety in public places (TT)1 % 63 67 68 69 Crime Victimisation Rate per 100 000 (TT)1 % 13.8 12.8 12.8 12.0
Source: Department of Police and Public Safety and Steering Committee for the Review of Commonwealth/State Service Provision 2004, Report on Government Services 2004.
Note: 1. (TT) in the Performance Information table denotes the Performance Measure is linked directly to a Tasmania Together benchmark.
Performance Information Comments
Table 13.5 reports trend data for a number of effectiveness indicators for crime detection and investigation. 'Recorded Offences' refers to crimes which have been detected by police in the course of their investigations, as well as those reported to police by the public. In addition, it reports trend data for the Tasmania Together indicators 'feeling safe at home', 'feeling safe in public places' and 'crime victimisation rate per 100 000 people'.
The Australian Bureau of Statistics' crime victimisation data indicated that in terms of crimes against the person, Tasmania was a relatively safe state, with lower reported crime rates than most other states. Tasmania has continued to reduce offences against the person and property across all nine national crime categories and for the first time remained below the national average in all categories. The Report on Government Services 2004 indicated that perceptions of safety remained high in Tasmania, and overall Tasmania can still lay claim to being the safest state in the nation.
Chapter 13: Police and Public Safety 345 Output Group 3: Traffic Law Enforcement and Road Safety Description
This Output Group comprises policing services aimed at minimising road trauma, improving the behaviour of road users, ensuring the free flow of traffic, detecting traffic offences, particularly those involving speed, inattentive driving and alcohol/drugs and attending vehicle accidents. It directly relates to Government policy to improve road safety and create safer roads.
The Department achieves this Output Group by the deployment of resources throughout the State to undertake activities such as:
• general traffic law enforcement;
• traffic patrols;
• targeted patrols;
• traffic control;
• attendance at accidents; and
• road safety education.
This Output Group contributes to all of the Department's Outcomes, particularly safer road use.
346 Chapter 13: Police and Public Safety Table 13.6: Summary Financial Information - Output Group 3 2003-04) 2004-05) Traffic Law Enforcement and Road Safety Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 12 104) 12 756) 5.4) Grants 1 340) 1 340) ....) Sales of Goods and Services 162) 162) ....) TOTAL 13 606) 14 258) 4.8)
OPERATING EXPENSES Employee Entitlements Salaries and Wages2 9 007) 9 487) 5.3) Other Employee Related Expenses2 889) 936) 5.3) Superannuation2 988) 1 028) 4.0) Depreciation and Amortisation 132) 132) ....) Grants and Transfer Payments 180) 180) ....) Supplies and Consumables Maintenance and Property Services3 438) 475) 8.4) Other Supplies and Consumables 2 145) 2 176) 1.4) TOTAL 13 779) 14 414) 4.6)
EXPENSE BY OUTPUT 3.1 Accident Reduction and Road Safety 13 779) 14 414) 4.6) TOTAL 13 779) 14 414) 4.6)
Notes: 1. The increase in Annual Appropriation reflects an increase in the cost of council rate payments following State and Local Government Financial Reform, additional funding for the maintenance of current service delivery levels and costs associated with salary and wage indexation. 2. The increase reflects the costs associated with salary and wage indexation. 3. Refer to Table 13.2, Note 5.
Chapter 13: Police and Public Safety 347 Major Issues and Initiatives for 2004-05
Major issues and initiatives for this Output Group in 2004-05 include:
• continuation of the Motor Accidents Insurance Board (MAIB) funded district traffic task forces;
• continued replacement program for breathalyser devices and speed detection devices; and
• enhancement of the intelligence led approach to traffic management and enforcement.
Table 13.7: Performance Information – Output Group 3 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Total number of serious injuries Number 422 401 380 350 Motorists detected speeding (speed camera) % 0.73 0.75 0.78 0.79 People who have sometimes driven when 'possibly' over the 0.05% blood alcohol limit % 10.7 11.0 10.5 10.0 People who have 'sometimes' or 'more often' driven over the speed limit by 10 kph or more % 53.0 57.0 55.0 53.0
Source: Department of Infrastructure, Energy and Resources, Department of Police and Public Safety and Steering Committee for the Review of Commonwealth/State Service Provision 2004, Report on Government Services 2004. Performance Information Comments
Table 13.7 includes information on four road safety effectiveness measures, reported on in the Department of Police and Public Safety Annual Report. The number of serious injuries caused through road crashes continued to decrease. Crash injury rate statistics published in the Report on Government Services 2004 indicate that Tasmania still remains the most successful state in reducing its injury rates.
The Department's accident reduction strategy, which receives additional funding from the MAIB, was utilised in Road Safety Task Force activities.
348 Chapter 13: Police and Public Safety Output Group 4: Protection of Primary Industry and Fisheries Resources Description
This Output Group comprises policing services relating to the protection and security of poppy crops and the protection of State and Commonwealth marine resources.
The detection and apprehension of offenders against the State and Commonwealth fishing resources is the combined responsibility of the State and Commonwealth Governments. Poppy Security
This Output is achieved by the management of police activities to undertake:
• protection of poppy crops;
• targeting of offenders;
• enhanced investigative techniques;
• reduction of poppy diversions onto the illicit market;
• industry participation in facilitating protection and security; and
• development of intelligence and auditing services. Fisheries Security
This Output is achieved by the management of police activities to undertake:
• protection of marine resources;
• high visibility;
• targeting of offenders;
• enhanced investigative techniques;
• industry participation in facilitating protection and security;
• maximisation of the seizure of confiscated assets; and
• development of intelligence and auditing services.
Activities within this Output Group contribute to the Department's Outcomes of:
• a safe and secure community;
• a reduction in crime; and
• an effective community service.
Chapter 13: Police and Public Safety 349 Table 13.8: Summary Financial Information - Output Group 4 2003-04) 2004-05) Protection of Primary Industry and Fisheries Resources Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 4 681) 4 927) 5.3) Grants 343) 340) (0.9) Sales of Goods and Services 61) 61) ....) TOTAL 5 085) 5 328) 4.8)
OPERATING EXPENSES Employee Entitlements Salaries and Wages2 3 199) 3 444) 7.7) Other Employee Related Expenses2 327) 348) 6.4) Superannuation2 362) 380) 5.0) Depreciation and Amortisation 52) 52) ....) Grants and Transfer Payments 124) 124) ....) Supplies and Consumables Maintenance and Property Services3 308) 322) 4.5) Other Supplies and Consumables 718) 720) 0.3) TOTAL 5 090) 5 390) 5.9)
EXPENSE BY OUTPUT 4.1 Poppy Security 875) 917) 4.8) 4.2 Fisheries Security - State and Commonwealth 4 215) 4 473) 6.1) TOTAL 5 090) 5 390) 5.9)
Notes: 1. The increase in Annual Appropriation reflects an increase in the cost of council rate payments following State and Local Government Financial Reform, additional funding for the maintenance of current service delivery levels and costs associated with salary and wage indexation. 2. The increase reflects the costs associated with salary and wage indexation. 3. Refer to Table 13.2, Note 5.
350 Chapter 13: Police and Public Safety Major Issues and Initiatives for 2004-05
Major issues and initiatives for this Output Group in 2004-05 include:
• ongoing security of both poppy crop and fishing resources;
• continued collaboration and partnership with industry bodies;
• continuation of a marine vessel fleet replacement program; and
• implementation of the memorandum of understanding between the Department and the fishing industry.
Table 13.9: Performance Information – Output Group 4 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Number of sea inspections1 Number 4 500 12 635 13 500 14 000 Number of business premise inspections1 Number 1 428 1 866 3 000 4 000 Number of major interferences to poppy crops Number 27 26 26 26
Note: 1. The increase is due to an expected increase in marine enforcement following consultation, and in agreement with, the fishing industry.
Performance Information Comments
Table 13.9 reports trend data for two marine workload measures and one effectiveness indicator, the number of major interferences to poppy crops.
The fishing industry is a multi million-dollar enterprise and requires a high level of control and security. Fisheries patrols are undertaken in both State and Commonwealth waters south of latitude 30°12' South.
Performance targets for marine enforcement have been identified, with a resulting significant improvement in productivity.
The number of poppy crop interferences was at a similar level to the previous year, with 17 515 hectares devoted to poppy cultivation.
Chapter 13: Police and Public Safety 351 Output Group 5: Emergency Management Description
The State Emergency Service (SES) is responsible for the administration of the Emergency Service Act 1976. This Act details the State requirements for the prevention of, preparedness for, response to and recovery from, emergency events. The SES, in particular, is responsible for the management of flood and storm events.
The SES is responsible for either producing this Output Group or coordinating its production by providing expert guidance to other agencies and the private sector where the majority of emergency management plans are produced.
In recognising the substantial contribution made by SES volunteer units, the Government has provided a 67.4 per cent increase in funding to the SES in 2004-05. This funding will provide:
• substantial upgrades to Road Accident Rescue vehicles and equipment, operated by local SES units;
• the replacement and upgrade of volunteer equipment including uniforms and communications equipment;
• the provision of storm damage and general rescue equipment; and
• ensuring our volunteers are the best trained in the nation through the provision of training resources and packages together with computerised training data bases.
The additional funding provided recognises the high value this Government places on the contributions made by our volunteers.
Activities in this Output Group contribute to all Departmental Outcomes.
352 Chapter 13: Police and Public Safety Table 13.10: Summary Financial Information - Output Group 5 2003-04) 2004-05) Emergency Management Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 1 216) 2 035) 67.4) Grants 291) 291) ....) TOTAL 1 507) 2 326) 54.3)
OPERATING EXPENSES Employee Entitlements Salaries and Wages2 855) 1 026) 20.0) Other Employee Related Expenses 88) 90) 2.3) Superannuation 109) 110) 0.9) Depreciation and Amortisation 16) 16) ....) Grants and Transfer Payments 21) 21) ....) Supplies and Consumables Maintenance and Property Services 7) 7) ....) Other Supplies and Consumables3 584) 732) 25.3) Other Expenses4 ....) 410) ....) TOTAL 1 680) 2 412) 43.6)
EXPENSE BY OUTPUT 5.1 State Emergency Management Services 1 680) 2 412) 43.6) TOTAL 1 680) 2 412) 43.6)
Notes: 1. The increase in Annual Appropriation reflects the new initiative funding for the State Emergency Service and costs associated with salary and wage indexation. 2. The increase relates to the salary component of the new initiative funding in addition to the costs associated with salary and wage indexation. 3. The increase reflects the additional non-salary costs associated with the new initiative funding. 4. The increase relates to funding provided as part of the new initiative for Road Accident Rescue associated activities.
Chapter 13: Police and Public Safety 353 Major Issues and Initiatives for 2004-05
Major issues and initiatives for this Output Group in 2004-05 include:
• the use of increased government funding provided through the 'SES in Partnership' initiative to enhance Road Accident Rescue capabilities in respect to additional vehicle and equipment capabilities, the upgrade of storm damage and rescue equipment and the development of advanced volunteer training packages;
• continued review of Local Government and State-level emergency plans to ensure their currency;
• enhanced support to Local Government, road accident rescue and volunteer groups;
• implementation of priorities identified in the Tasmanian Emergency Risk Management Plan;
• continued implementation of SES competency-based skills training, including accrediting volunteer trainers and assessors;
• increased levels of public awareness of, and skills in, emergency management through education programs; and
• development of a five year plan that will address maintaining volunteer resources and greater integration with other organisations focused on emergency and community safety.
Table 13.11: Performance Information – Output Group 5 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Completed local government emergency management plans that are current % 95 90 95 98 Number of SES call outs Number 317 460 450 450 Number of SES contact hours Number 9 000 13 724 13 500 14 000
Performance Information Comments
Table 13.11 reports trend information relating to the preparation of emergency management plans for each Local Government area and the call out and contact hours of SES personnel to assist with emergencies. The emergency management plans are developed in consultation with Local Government. This year the SES finalised the Tasmanian Emergency Risk Management Plan.
354 Chapter 13: Police and Public Safety Output Group 6: Support to Judicial Services Description
This Output Group relates to policing services that support the criminal justice system, including the prosecution of offenders, the provision of diversionary conferencing programs, investigative and clerical services on behalf of the coroner and the maintenance of a bail and warrants processing system.
The provision of police support to the criminal justice system is a State Government responsibility.
All members of the community benefit from this Output Group, although it relates directly to the judicial system and its users.
The Department undertakes the management of police participation in the administration of justice through:
• prosecution services;
• presenting evidence in court;
• victim support services;
• diversionary cautioning;
• coronial investigations; and
• bail/warrant processing.
This Budget sees a substantial commitment to the support of the judicial system through government funding of two programs, these being 'Safe at Home' – A Criminal Justice Framework for Responding to Family Violence in Tasmania and 'Project U-Turn'.
The 'Safe at Home' initiative is a whole-of-government initiative on behalf of the Departments of Justice, Health and Human Services, Premier and Cabinet and Police and Public Safety. This initiative will see a pro-arrest, pro-prosecution, integrated criminal justice response to family violence. Funding provided to Police and Public Safety will result in the establishment of six teams of police officers to provide a range of crisis and safety services to the victims of family violence. In addition the provision of additional prosecutors to deal with family violence orders is made possible through this budget initiative.
The Project U-Turn initiative will be funded by Government to carry on the successful program which has been in pilot for the past two years. This program identifies the need for diversionary strategies to address the recidivism of young offenders. Project U-Turn is a best practice diversionary program which aims to break the cycle of motor vehicle theft offending through engaging participants in hands on mechanical training while addressing life-skills and personal development issues.
Activities in this Output Group contribute to all of the Department's Outcomes.
Chapter 13: Police and Public Safety 355 Table 13.12: Summary Financial Information - Output Group 6 2003-04) 2004-05) Support to Judicial Services Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 6 859) 7 634) 11.3) Sales of Goods and Services 91) 91) ....) TOTAL 6 950) 7 725) 11.2)
OPERATING EXPENSES Employee Entitlements Salaries and Wages2 4 573) 4 994) 9.2) Other Employee Related Expenses 465) 492) 5.8) Superannuation 505) 528) 4.6) Depreciation and Amortisation 68) 68) ....) Grants and Transfer Payments 103) 103) ....) Supplies and Consumables Maintenance and Property Services3 245) 266) 8.6) Other Supplies and Consumables4 1 082) 1 355) 25.2) TOTAL 7 041) 7 806) 10.9)
EXPENSE BY OUTPUT 6.1 Prosecution, Conferencing, Coronial and Bail/Warrant Processing 7 041) 7 806) 10.9) TOTAL 7 041) 7 806) 10.9)
Notes: 1. The increase in Annual Appropriation reflects new initiative funding for 'Safe at Home' and Project U-Turn. In addition, it includes an increase in the cost of council rate payments following State and Local Government Financial Reform, additional funding for the maintenance of current service delivery levels and costs associated with salary and wage indexation. 2. The increase relates to the salary component of the new initiative funding and the costs associated with salary and wage indexation. 3. Refer to Table 13.2, Note 5. 4. The increase reflects the additional non-salary costs associated with the new initiative funding.
Major Issues and Initiatives for 2004-05
Major issues and initiatives for this Output Group in 2004-05 include:
• participation in the whole-of-government youth justice conferencing program;
• identification and implementation of early intervention strategies to manage 'at risk' young people out of a criminal environment;
• the funding of Project U-Turn to extend beyond the pilot phase in order to ensure that this extremely successful program continues to break the cycle of motor vehicle theft by engaging participants in 'hands on' mechanical training, while addressing life skills and personal development issues;
356 Chapter 13: Police and Public Safety • the provision of support to victims of family violence through the establishment of statewide crisis and safety services teams funded through the 'Safe at Home' Budget initiative; and
• the adoption of a pro-arrest strategy for dealing with family violence supported through the 'Safe at Home' Budget initiative with the provision of an additional six police prosecution staff.
Table 13.13: Performance Information – Output Group 6 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Percentage of juveniles at risk cautioned or conferenced % 67.5 57.0 60.0 62.0 Report level of family violence (TT)1 No of reports 1 633 2 299 3 000 3 000
Note: 1. (TT) in the Performance Information table denotes the Performance Measure is linked directly to a Tasmania Together benchmark.
Performance Information Comments
Table 13.13 reports data for the percentage of juveniles at risk cautioned or conferenced instead of being referred to court.
With the introduction of the Youth Justice Act 1997 and the Children, Young Persons and Their Families Act 1997, police are continuing to work cooperatively with other government agencies to enhance the diversionary conferencing program. This aims to divert young offenders from the court process and rehabilitate them as well as protecting young people at risk.
In addition, under Tasmania Together, the Department has responsibility for reporting against the level of family violence in the community. This indicator was included for the first time in the 2003-04 Budget information, with figures revealing a substantial increase in the reporting of family violence incidents. Family violence will be the focus of 'Safe at Home' – A Criminal Justice Framework for Responding to Family Violence in Tasmania, which is a whole-of-government pro-interventionist strategy. This approach will be the first of its kind in Australia.
Chapter 13: Police and Public Safety 357 Output Group 7: Ministerial Support and Information Services Description
This Output Group covers the provision of strategic policy advice to the Minister for Police and Public Safety as well as informative services to the community. The latter includes Freedom of Information (FOI), accident records, statistical services and analysis, insurance services and criminal records services.
The provision of support to the Minister and FOI to the community is aligned with Government policy.
The Department undertakes the management of ministerial services for the Minister for Police and Public Safety through:
• ministerial and parliamentary correspondence;
• advice on legislation to the Government;
• policy advice to government agencies and non-government organisations;
• national common police services;
• research and planning;
• executive/administrative support;
• emergency management advice; and
• freedom of information.
Activities in this Output Group contribute to all of the Department's Outcomes.
358 Chapter 13: Police and Public Safety Table 13.14: Summary Financial Information - Output Group 7 2003-04) 2004-05) Ministerial Support and Information Services Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 2 347) 2 475) 5.5) Sales of Goods and Services 31) 31) ....) TOTAL 2 378) 2 506) 5.4)
OPERATING EXPENSES Employee Entitlements Salaries and Wages2 1 567) 1 661) 6.0) Other Employee Related Expenses2 159) 168) 5.7) Superannuation2 173) 182) 5.2) Depreciation and Amortisation 23) 23) ....) Grants and Transfer Payments 38) 38) ....) Supplies and Consumables Maintenance and Property Services3 51) 58) 13.7) Other Supplies and Consumables 398) 403) 1.3) TOTAL 2 409) 2 533) 5.1)
EXPENSE BY OUTPUT 7.1 Ministerial Services, External Information and Policy Advice 2 409) 2 533) 5.1) TOTAL 2 409) 2 533) 5.1)
Notes: 1. The increase in Annual Appropriation reflects an increase in the cost of council rate payments following State and Local Government Financial Reform, additional funding for the maintenance of current service delivery levels and costs associated with salary and wage indexation. 2. The increase reflects the costs associated with salary and wage indexation. 3. Refer to Table 13.2, Note 5.
Major Issues and Initiatives for 2004-05
Major issues and initiatives for this Output Group in 2004-05 include:
• continued contribution to the formation of national performance indicators for policing; and
• continued support to the office of the Minister for Police and Public Safety.
Chapter 13: Police and Public Safety 359 Table 13.15: Performance Information – Output Group 7 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Percentage of FOI requests completed within prescribed time % 100 100 100 100 Percentage of ministerial responses provided within 21 days % 97 97 97 97
Performance Information Comments
Table 13.15 reports trend information for FOI responses and for Ministerial responses provided within the prescribed timeliness standard. Revenue Collected on Behalf of the Consolidated Fund
Table 13.16 summarises the Revenue collected on behalf of the Consolidated Fund by the Department of Police and Public Safety.
Table 13.16: Revenue Collected on Behalf of the Consolidated Fund 2003-04 2004-05) Budget) Budget) Variation) $'000) $'000) %) REVENUE Grants 212) 217) 2.3) Sales of Goods and Services 294) 300) 2.0) TOTAL REVENUE 506) 517) 2.1)
Transfers to the Consolidated Fund Academy Trainees - Board Payments 88) 90) 2.2) Commonwealth Recurrent Grants 212) 217) 2.3) Other Fees and Recoveries 206) 210) 1.9) TOTAL TRANSFERS TO THE CONSOLIDATED FUND 506) 517) 2.1)
Funds collected from fees and charges levied for services rendered and contributions from various sources for specific purposes are credited to the Consolidated Fund. The relevant Output Group linked to receipts received is Output Group 1 - Policing Support to the Community.
360 Chapter 13: Police and Public Safety Capital Investment Program
The Department's Capital Investment Program for 2004-05 provides funding for the following projects: New Projects
• Protective Equipment – replacement of existing ballistic vests and protective equipment in order to provide operational Police with appropriate protection in the continually changing operational setting. Continuing Projects
Continuing projects being undertaken:
• Breathalyser Replacement Program – replacement of breath testing equipment to reflect uniformity of equipment used amongst police services in Australia; and
• Building Services Maintenance – essential and statutory maintenance on building mechanical services including fire, hydraulic, air conditioning and lift equipment in police buildings.
Table 13.17: Capital Investment Program1 2004-05) Budget) $'000) New Projects Protective Equipment 490)
Continuing Projects Breathalyser Replacement Program 150) Building Services Maintenance 376)
TOTAL CAPITAL INVESTMENT PROGRAM 1 016)
Note: 1. For more information regarding the Capital Investment Program, see Chapter 6 in Budget Paper No 1 Budget Overview 2004-05.
Chapter 13: Police and Public Safety 361 DETAILED BUDGET STATEMENTS
Table 13.18: Output Group Expense Summary for the Department of Police and Public Safety 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) Minister for Police and Public Safety Output Group 1 - Policing Support to the Community 1.1 Support to the Community 67 239) 75 708) 12.6) 67 239) 75 708) 12.6) Output Group 2 - Crime Detection and Investigation 2.1 Investigation of Crime 30 708) 32 466) 5.7) 30 708) 32 466) 5.7) Output Group 3 - Traffic Law Enforcement and Road Safety 3.1 Accident Reduction and Road Safety 13 779) 14 414) 4.6) 13 779) 14 414) 4.6) Output Group 4 - Protection of Primary Industry and Fisheries Resources 4.1 Poppy Security 875) 917) 4.8) 4.2 Fisheries Security - State and Commonwealth 4 215) 4 473) 6.1) 5 090) 5 390) 5.9) Output Group 5 - Emergency Management 5.1 State Emergency Management Services 1 680) 2 412) 43.6) 1 680) 2 412) 43.6) Output Group 6 - Support to Judicial Services 6.1 Prosecution, Conferencing, Coronial and Bail/Warrant Processing 7 041) 7 806) 10.9) 7 041) 7 806) 10.9) Output Group 7 - Ministerial Support and Information Services 7.1 Ministerial Services, External Information and Policy Advice 2 409) 2 533) 5.1) 2 409) 2 533) 5.1)
Other 376) 866) 130.3)
TOTAL AGENCY 128 322) 141 595) 10.3)
362 Chapter 13: Police and Public Safety Table 13.19: Statement of Financial Performance for the Department of Police and Public Safety 2003-04 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 127 123) 135 357) 6.4) Other2 350) 664) 89.7) Grants3 2 405) 2 168) (9.9) Sales of Goods and Services 1 814) 1 814) ....) TOTAL 131 692) 140 003) 6.3)
OPERATING EXPENSES Employee Entitlements4 88 163) 98 513) 11.7) Superannuation4 8 525) 9 247) 8.4) Depreciation and Amortisation 1 223) 1 223) ....) Grants and Transfer Payments 1 610) 1 610) ....) Supplies and Consumables5 28 801) 30 592) 6.2) Other Expenses6 ....) 410) ....) TOTAL 128 322) 141 595) 10.3)
NET OPERATING RESULT7 3 370) (1 592) (147.3)
ADMINISTERED ITEMS
REVENUE Grants 212) 217) 2.3) Sales of Goods and Services 294) 300) 2.0) TOTAL 506) 517) 2.1)
EXPENSES Transfer to the Consolidated Fund 506) 517) 2.1) TOTAL 506) 517) 2.1)
Notes: 1. The increase in Annual Appropriation relates to additional funding of new and continued initiatives and the costs associated with salary and wage indexation. 2. The increase relates to Consolidated Funding carried forward for the CrimTrac initiative. 3. The reduction is due to a decrease in externally funded contributions including the cessation of the Commonwealth funded Project U-Turn Pilot Project. 4. The increase relates to the funding of additional positions contained in the Budget initiatives and the costs associated with salary and wage indexation. 5. This increase relates to additional non–salary cost associated with initiatives, and the additional cost of council rate payments following State and Local Government Financial Reform. 6. This increase relates to non-salary funding provided as part of the Budget initiative for the State Emergency Service. 7. This deficit is brought about by the impact of depreciation and completion of non-government funded programs.
Chapter 13: Police and Public Safety 363 Table 13.20: Statement of Financial Position as at 30 June for the Department of Police and Public Safety 2004 2005 Budget) Budget) Variation) $'000) $'000) %) CURRENT ASSETS Cash1 277) ....) (100.0) Receivables2 381) 683) 79.2) Prepayments 159) 167) 5.0) Other 387) 359) (7.3) TOTAL 1 204) 1 209) 0.4)
NON-CURRENT ASSETS Land and Buildings 51 214) 53 517) 4.4) Plant and Equipment 4 287) 4 257) (0.7) Infrastructure3 2 931) ....) (100.0) TOTAL 58 432) 57 774) (1.2)
TOTAL ASSETS 59 636) 58 983) (1.1)
CURRENT LIABILITIES Payables2 1 400) 1 808) 29.1) Employee Entitlements4 12 446) 13 590) 9.1) Accrued Expenses2 ....) 425) ....) TOTAL 13 846) 15 823) 14.2)
NON-CURRENT LIABILITIES Employee Entitlements4 14 187) 15 623) 10.1) TOTAL 14 187) 15 623) 10.1)
TOTAL LIABILITIES 28 033) 31 446) 12.1)
NET ASSETS 31 603) 27 537) (12.9)
Notes: 1. The decrease relates to the completion of non-government funded programs. 2. The revised estimate is based on the 2002-03 closing position and the 2003-04 year-to-date actuals. 3. This item has been consolidated within Land and Buildings in 2004-05. 4. The increase relates to the salary and wage indexation impact on employee entitlements.
364 Chapter 13: Police and Public Safety Table 13.20: Statement of Financial Position as at 30 June for the Department of Police and Public Safety (continued) 2004 2005 Budget) Budget) Variation) $'000) $'000) % ADMINISTERED ITEMS
CURRENT ASSETS Cash1 204) ....) (100.0) Tax Assets1 275) ....) (100.0) TOTAL 479) ....) (100.0)
NON-CURRENT ASSETS TOTAL ....) ....) ....)
TOTAL ASSETS 479) ....) (100.0)
CURRENT LIABILITIES TOTAL ....) ....) ....)
NON-CURRENT LIABILITIES Tax Liabilities1 ....) 94) ....) TOTAL ....) 94) ....)
TOTAL LIABILITIES ....) 94) ....)
NET ASSETS 479) (94) (119.7)
Note: 1. Reflects the change in classification between controlled and administered items.
Chapter 13: Police and Public Safety 365 Table 13.21: Statement of Cash Flows for the Department of Police and Public Safety 2003-04 2004-05) Budget) Budget) Variation) $'000) $'000) %) CASH FLOWS FROM OPERATING ACTIVITIES Receipts Revenue from Government Appropriation1 127 123) 135 357) 6.4) Grants2 2 405) 2 168) (9.9) Sales of Goods and Services 1 814) 1 814) ....) Payments Employee Entitlements3 (91 113) (98 165) 7.7) Superannuation3 (8 819) (9 213) 4.4) Grants and Transfer Payments (1 610) (1 610) ....) Supplies and Consumables4 (28 801) (30 592) 6.2) Other Payments5 ....) (410) ....) NET CASH FROM/(USED IN) OPERATING ACTIVITIES 999) (651) (165.2)
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of Fixed Assets6 (1 545)(150) (90.3) NET CASH FROM/(USED IN) INVESTING ACTIVITIES (1 545) (150) (90.3)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held (546) (801) 46.7)
Cash at the Beginning of Reporting Period 793) 801) 1.0)
Cash at the End of Reporting Period 247) ....) (100.0)
Notes: 1. The increase in Annual Appropriation relates to additional funding of new and continued initiatives and the costs associated with salary and wage indexation. 2. The reduction is due to a decrease in externally funded contributions including the cessation of the Commonwealth funded Project U-Turn Pilot Project. 3. The increase relates to the funding of additional positions contained in the Budget initiatives and the costs associated with salary and wage indexation. 4. This increase relates to additional non–salary cost associated with initiatives, and the additional cost of council rate payments following State and Local Government Financial Reform. 5. This increase relates to non-salary funding provided as part of the Budget initiative for the State Emergency Service. 6. The decrease relates to the completion of the Police Academy Refurbishment in 2003-04.
366 Chapter 13: Police and Public Safety Table 13.21: Statement of Cash Flows for the Department of Police and Public Safety (continued) 2003-04 2004-05) Budget) Budget) Variation) $'000) $'000) %) ADMINISTERED ITEMS
CASH FLOWS FROM OPERATING ACTIVITIES Receipts Grants 212) 217) 2.3) Sales of Goods and Services 294) 300) 2.0) GST Receipts 3 000) 3 000) ....) Payments Transfers to the Consolidated Fund (506) (517) 2.1) GST Payments (3 000) (3 000) ....) NET CASH FROM/(USED IN) OPERATING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM INVESTING ACTIVITIES NET CASH FROM/(USED IN) INVESTING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held ....) ....) ....)
Cash at the Beginning of Reporting Period 234) ....) (100.0)
Cash at the End of Reporting Period 234) ....) (100.0)
Chapter 13: Police and Public Safety 367 Table 13.22: Reconciliation of Operating Expenses to Consolidated Fund Appropriation 2003-04 2004-05 Budget Budget $'000 $'000
Total Operating Expenses 128 322 141 595
Adjustments for Non-Cash Items Depreciation (1 223) (1 223) Employee Entitlements 2 950 (348) Superannuation 294 (34) Total Cash Cost of Outputs 130 343 139 990
Other Funding Sources (4 765) (4 783) Purchase of Capital Items 1 545 150
Total Consolidated Fund Appropriation 127 123 135 357
368 Chapter 13: Police and Public Safety 14 DEPARTMENT OF PREMIER AND CABINET
AGENCY OUTLINE
The Department of Premier and Cabinet (DPAC) is a central agency of the Tasmanian State Government. The Ministers to whom the Department is responsible are the Premier, the Minister Assisting the Premier on Local Government, the Minister for Women Tasmania and the Minister for Justice and Industrial Relations.
The Department provides a broad range of services to the Cabinet, other members of Parliament, Government agencies and the community. The Department works closely with the public sector, the community and Local and Commonwealth Governments.
The Department also provides administrative support to the State Service Commissioner and the Tasmania Together Progress Board, each of which is separately accountable and reports directly to Parliament.
During 2003-04, the Office of Industrial Relations joined the Department of Premier and Cabinet and a new Output, Output 4.2: Industrial Relations and Policy Advocacy Services was established. In 2004-05, a new Output, Output 4.1: State Service Employment and Management will be created to manage the functions delegated by the State Service Commissioner. Administrative support will continue to be provided to the State Service Commissioner under Output 4.3: Support for the State Service Commissioner.
STRATEGIC FOCUS
The broad strategic focus of the Department is based upon the vision of 'excellence in public service supporting the Tasmania Together vision of a proud and confident society where our people live in harmony and prosperity'. The mission is 'to support the Government's policy objectives by leading the public sector; working collaboratively both within government and with the community; and contributing to a prosperous, inclusive and fair Tasmania'.
The priorities of the Government to which the Department contributes are:
• Tasmania Together;
• Partnerships;
• Social policy and projects;
• Community and infrastructure development;
• eGovernment;
• State Service development; and
• State security.
Chapter 14: Premier and Cabinet 369 KEY STRATEGIES
The key strategies used by the Department in achieving its outcomes are:
• creating ways of greater collaboration and cooperation between government agencies to develop and implement effective public policy through:
− public sector leadership;
− more effective involvement in whole-of-government Budget development and prioritisation; and
− support and contribution to Tasmania Together and partnerships across the community;
• continually reviewing agency operations to make best use of resources;
• valuing and developing the skills and talents of the Department's staff; and
• safeguarding the health, safety and security of staff.
In 2004-05, the Department will continue to provide effective support to the Government policy making and implementation processes and to the goals, benchmarks and community benefits identified by Tasmania Together and the Partnership agreements by:
• enabling informed decision-making;
• providing whole-of-government leadership; and
• setting and maintaining high standards in government administration, policy development and service delivery.
2004-05 MAJOR INITIATIVES
The major initiatives of the Department in 2004-05 will include:
• progressing the Government's contribution to achieving the Tasmania Together benchmarks;
• coordinating the Government's effort on the first Five Year Review of Tasmania Together;
• leading and implementing strategies and projects across government on social policy;
• leading and partnering both within government and with the community to achieve more effective service delivery;
• extending the range, scope and effectiveness of partnerships; and
• renewing the State Service.
370 Chapter 14: Premier and Cabinet SUMMARY AGENCY 2004-05 BUDGET INFORMATION
Financial Summary
Table 14.1: Summary Financial Information for the Department of Premier and Cabinet 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 23 859) 25 952) 8.8) Other Revenue 30 654) 28 398) (7.4) TOTAL 54 513) 54 350) (0.3)
OPERATING EXPENSES Support for Executive Decision Making1 5 679) 6 337) 11.6) Government Processes and Services2 5 945) 7 404) 24.5) Electronic Services for Government Agencies and the Community 32 733) 33 374) 2.0) Industrial Relations and State Service Management 2 729) 2 817) 3.2) Tasmania Together Progress Board 612) 616) 0.7) Women Tasmania 1 147) 1 241) 8.2) Development of Local Government 1 659) 1 682) 1.4) Grants and Subsidies3 1 126) 5 743) 410.0) TOTAL 51 630) 59 214) 14.7)
NET OPERATING RESULT 2 883) (4 864) (268.7)
Notes: 1. The increase in Support for Executive Decision Making represents additional staffing resources to assist with the provision of enhanced policy development and to support the Seniors Bureau and Office of Aboriginal Affairs, a salary increase in accordance with the State Service Wages Agreement, increased financial assistance to community organisations, increased accommodation rental costs, and upgrading and maintaining of IT infrastructure. 2. The increase in Government Processes and Services represents additional staffing resources to assist with the provision of enhanced policy development, implementation of the Whole–of-Government Communications Policy across Government (this includes the Concessions Booklet, enhancement of the Government internet gateway and centralisation of whole-of-government projects such as the annual agricultural show displays), additional resources for the Office of Parliamentary Counsel, a salary increase in accordance with the State Service Wages Agreement, increased financial assistance to community organisations, increased accommodation rental costs, upgrading of IT infrastructure, introduction of the Frank McDonald Memorial Essay Competition and transfer of the Portfolio Services Unit from Output Group 1 to Output Group 2 to better reflect the role of the Unit. 3. The increase in Grants and Subsidies reflects the level of funding to be distributed from funding already received under the Regional Forest Agreement and the Private Forests Reserve Program.
Chapter 14: Premier and Cabinet 371 DETAILED OUTPUT GROUP 2004-05 BUDGET INFORMATION
The individual Outputs of the Department of Premier and Cabinet are provided under the following Output Groups:
Output Group 1: Support for Executive Decision Making;
Output Group 2: Government Processes and Services;
Output Group 3: Electronic Services for Government Agencies and the Community;
Output Group 4: Industrial Relations and State Service Employment;
Output Group 5: Tasmania Together Progress Board;
Output Group 6: Women Tasmania; and
Output Group 7: Development of Local Government.
Output Group 1: Support for Executive Decision Making Description
The purpose of this Output Group is to provide support for executive decision-making and it includes five Outputs. Output 1.1: Strategic Policy and Advice The focus of this Output is to provide services to assist the Premier and Cabinet to make informed decisions. The primary services include:
• research, advice and policy development on issues relevant to the Government's overall policy framework and agenda;
• reviewing and coordinating policy proposals from other government agencies;
• inter-government liaison and coordination; and
• monitoring the impact of the Government's policies and programs. Output 1.2: Management of Policy Projects In support of this Output, the Policy Division provides services to assist the Premier and Cabinet to make informed decisions, primarily:
• in managing issues of critical importance to the Government; and
• developing and coordinating strategies, programs and projects designed to progress the Government's priority objectives.
372 Chapter 14: Premier and Cabinet Output 1.3: Seniors Bureau – Policy Advice and Community Services The Seniors Bureau broadly focuses on positive ageing issues, rather than specifically on aged care issues. The Seniors Bureau develops policy and strategic plans to promote improved health and well being for older Tasmanians. This involves promoting positive ageing, providing advice on issues that affect the quality of life of older Tasmanians and supporting consultative mechanisms that ensure older people's participation in the development of policy. The work of the Seniors Bureau is guided by the Tasmanian Plan for Positive Ageing 2000-2005, which recognises that the health and well being of older Tasmanians is determined by a wide range of factors including income, social status, community participation, social support networks, education, employment, social environments and access to services. The Seniors Bureau has three major areas of focus:
• developing and coordinating positive ageing policy across government;
• managing and administrating the Seniors Card Scheme; and
• coordinating Seniors Week. Output 1.4: Aboriginal Affairs – Policy Advice and Community Services The Office of Aboriginal Affairs endeavours to advance Aboriginal affairs across the State sector. It is the primary resource for and adviser to the Government on policy issues affecting Aboriginal people. The Office undertakes this role by:
• providing advice to the Government on policies and practices affecting the Aboriginal community;
• assisting with information about programs, services and issues; and
• administering and coordinating policy development affecting Aboriginal people.
The Office of Aboriginal Affairs is responsible for administering the Aboriginal Land Act 1995. The Office is also responsible for high-level consultation with the Aboriginal community. It provides an accurate representation of an Aboriginal view to advise the Premier and Cabinet on the efficient, effective management of policies, legislation and programs that affect Aboriginal people. The Office also seeks to assist the Aboriginal community to achieve social, cultural and economic outcomes and promote greater understanding and acceptance of Aboriginal culture and its ongoing contribution to the Tasmanian community.
The Office of Aboriginal Affairs contributes to a range of Tasmania Together benchmarks, particularly those related to Goal 10: 'Acknowledge and respect the contribution that the Aboriginal community and its culture have made and continue to make to Tasmania and its identity'. Output 1.5: Multicultural Tasmania – Policy Advice and Community Services Multicultural Tasmania provides policy advice to the Government on issues relating to Tasmania's culturally diverse communities and enhances interaction between these communities and government agencies. Multicultural Tasmania monitors the service provision of State government agencies to migrants in general but especially to those of diverse language backgrounds, in keeping with the Principles for Tasmania's Culturally Diverse Society and the Multicultural Policy.
Chapter 14: Premier and Cabinet 373 Multicultural Tasmania provides administrative support to the Tasmanian Advisory Council for Multicultural Affairs (TACMA) and the International Wall of Friendship Development Committee, and works with the State funded peak body, the Multicultural Council of Tasmania, to promote the objectives of the Multicultural Policy. Multicultural Tasmania is also the State Certifying Authority for the Regional Sponsored Migration Scheme (RSMS), which provides the opportunity for areas like Tasmania to increase its migrant share by promoting employment opportunities for migrants with skills that are not otherwise available in Tasmania.
Executive support is provided to the inter-departmental committee administering the Multicultural Policy. In addition, Multicultural Tasmania works with Local Government through the Partnership agreements to provide better support and services to migrants. It also provides policy advice and assistance to private organisations and individuals on request. Multicultural Tasmania continues to participate on various Commonwealth, Local Government and independent committees working towards achieving improved settlement outcomes for humanitarian entrants in particular and all migrants in general.
Multicultural Tasmania administers a grants program, which is accessible to migrant communities and other organisations to plan and administer activities or projects that enhance the settlement of migrants in Tasmania. Multicultural Tasmania contributes to Tasmania Together Goals 1, 3, 8, 9, 11, 12 and 14, but particularly to Benchmarks 9.2.1 'Number of multicultural events in Tasmania'; 9.2.2 'Number of schools integrating multicultural perspectives in the curriculum'; and 16.3.3 'Proportion of migrants'.
374 Chapter 14: Premier and Cabinet Table 14.2: Summary Financial Information - Output Group 1 2003-04) 2004-05) Support for Executive Decision Making Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 5 544) 6 232) 12.4) Grants 13) 5) (61.5) Sales of Goods and Services 65) 101) 55.4) TOTAL 5 622) 6 338) 12.7)
OPERATING EXPENSES Employee Entitlements Salaries and Wages2 2 707) 3 090) 14.1) Other Employee Related Expenses 276) 291) 5.4) Superannuation 303) 328) 8.3) Depreciation and Amortisation 25) 25) ....) Grants and Transfer Payments3 203) 358) 76.4) Supplies and Consumables Consultants 46) 18) (60.9) Maintenance and Property Services4 411) 496) 20.7) Communications 97) 99) 2.1) Information Technology5 131) 164) 25.2) Travel and Transport 119) 130) 9.2) Advertising and Promotion 72) 71) (1.4) Other Supplies and Consumables 1 289) 1 267) (1.7) TOTAL 5 679) 6 337) 11.6)
EXPENSE BY OUTPUT 1.1 Strategic Policy and Advice6 2 024) 2 393) 18.2) 1.2 Management of Policy Projects 2 200) 2 224) 1.1) 1.3 Seniors Bureau - Policy Advice and Community Services 488) 625) 28.1) 1.4 Aboriginal Affairs - Policy Advice and Community Services 610) 652) 6.9) 1.5 Multicultural Tasmania - Policy Advice and Community Services 357) 443) 24.1) TOTAL 5 679) 6 337) 11.6)
Notes: 1. The increase in the Annual Appropriation provides for additional staffing resources to assist with the provision of enhanced policy development and to support the Seniors Bureau and Office of Aboriginal Affairs, a salary increase in accordance with the State Service Wages Agreement, increased financial assistance to community organisations, increased accommodation rental costs, and upgrading and maintaining of IT infrastructure. 2. The increase in Salaries and Wages reflects the provision of additional staffing resources to assist with the delivery of enhanced policy development and to support the Seniors Bureau and Office of Aboriginal Affairs and the salary increase provided in accordance with the State Service Wages Agreement. 3. The increase for Grants and Transfer Payments provides for increased Government assistance to community groups and organisations, including seniors and multicultural groups and organisations. 4. The increase for Maintenance and Property Services provides for accommodation rental cost for the Seniors Bureau and increased accommodation rental costs in accordance with lease agreements.
Chapter 14: Premier and Cabinet 375 5. The increase for Information Technology provides for additional costs to support the information technology infrastructure, including IT applications used by the Department. 6. The increase in Strategic Policy and Advice reflects the provision of additional staffing resources for the delivery of enhanced policy development.
Major Issues and Initiatives for 2004-05
The major whole-of-government issues and initiatives to be addressed by this Output Group in 2004-05 will include: Output 1.1: Strategic Policy and Advice • improving inter-governmental coordination, especially in relation to the Council of Australian Governments (COAG) and Ministerial Councils;
• managing whole-of-government input on major national issues currently being addressed by COAG including handguns, human cloning and stem cell research, exotic animal disease, natural disaster relief and mitigation, reconciliation, energy and greenhouse issues, water property rights, ageing, transnational crime and terrorism;
• coordinating social policy issues identified by the Social Policy Sub-Committee of Cabinet and the Inter-Agency Policy Coordination Committee including family violence, affordable housing, partnership to jobs, drugs, poverty and other social equity issues;
• continued policy development on a range of social issues, including disability and volunteerism;
• involvement in the implementation of the Natural Resource Management Framework and development of related environmental policy issues including water reform, native vegetation management and fire management; Output 1.2: Management of Policy Projects • coordinating the implementation within government of Tasmania Together;
• taking the lead role in relation to many of the Tasmania Together governance benchmarks and the priority benchmark cluster on poverty;
• management by the Social Projects Unit of key social policy election commitments including 'Kids in Mind' to assist children in families with mental illness and 'At School, On Time, Ready for Work' to address school attendance issues;
• involvement in implementation of the Natural Heritage Trust II Bilateral Agreement;
• involvement in the implementation of the Natural Resource Management Framework and related environmental policy issues;
• coordinating the implementation of the University Partnership agreement and the Volunteering Partnership;
376 Chapter 14: Premier and Cabinet Output 1.3: Seniors Bureau – Policy Advice and Community Services • developing and coordinating positive ageing policy within government, including providing advice on issues that affect the quality of life of older Tasmanians and supporting consultative mechanisms which ensure older people's participation in the development of policy;
• collaborating with all sectors of the community to promote positive ageing and the continuing contribution of older people in the Tasmanian community;
• reviewing progress by State Government departments, Local Government and key community organisations in implementing the Tasmanian Plan for Positive Ageing 2000-2005;
• managing and administering the Seniors Card Scheme;
• promoting and coordinating Seniors Week 2004; Output 1.4: Aboriginal Affairs – Policy Advice and Community Services • providing advice in the development of Aboriginal heritage legislation;
• developing initiatives that address indigenous family violence particularly through Tasmania's COAG trial;
• providing advice on the transfer of land to the Aboriginal community in Tasmania;
• providing advice and assistance on implementing relevant Tasmania Together goals and benchmarks;
• increasing access by Aboriginal people to State Sector employment through the State's Structured Training and Employment Project;
• developing an Aboriginal tourism development plan and assisting with the implementation of strategies arising from the plan; Output 1.5: Multicultural Tasmania – Policy Advice and Community Services • developing strategies, including the implementation of the statewide Multicultural Policy, and investigating the means to increase Tasmania's overseas migrant share, including the provision of relevant information to prospective migrants offshore;
• developing a Language Services Policy for government services as a basis for the informed use of interpreter services when dealing with the migrant community;
• facilitating the settlement of Temporary Protection Visa holders in Tasmania;
• improving the retention rate and settlement of humanitarian entrants;
• facilitating consultations to ensure the efficient process of the Humanitarian Entrants' Reunion Scheme which is administered through the No Interest Loan Scheme's NILS Network Inc and continuing to monitor and review the program through membership of the Board of the NILS Network Inc; and
• participating in the Tasmanian State Service Internship program to research the barriers to employment encountered by humanitarian entrants.
Chapter 14: Premier and Cabinet 377 Table 14.3: Performance Information – Output Group 1 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Final synopses delivered to Cabinet Office by deadline % 9396 95 95 Number of new Seniors Cards issued Number n.a. 4 291 4 500 4 500 Number of local councils that develop a positive ageing strategy Number n.a. 4 5 10 Number of new businesses registered with the Seniors Card Scheme Number n.a. n.a. 50 75 Number of Local Councils coordinating or holding Seniors Week activities Number n.a. n.a. 5 10 Number of State Government departments, units, branches or GBEs coordinating or holding Seniors Week activities Number n.a. n.a. 15 23 Number of Aboriginal people practising cultural activities including hunting, fishing and gathering. (TT benchmark 10.5.1) Number 200 194 250 275 Number of Aboriginal and Torres Strait Islander positions created under the Structured Training and Employment Project. (TT benchmark 10.2.2) Number 4 11 141 11 Number of Aboriginal identified positions in the State Service that can only be filled by Aboriginal people or Torres Strait Islanders. (TT benchmark 10.2.2) Number 50 55 60 65 Number of Aboriginal identified positions in the State Service that are filled by Aboriginal people or Torres Strait Islanders Number n.a. n.a. 54 60 Total number of people certified to migrate under the Regional Sponsored Migration Scheme Number 145 125 135 140 Number of attendances by Multicultural Tasmania at cultural events in Tasmania. Number 48 48 40 45 Number of students accessing English language classes at TAFE Number 213 240 245 260 Total number of people migrating to Tasmania (calendar year) Number 669 741 700 810
Note: 1. The 2003-04 target has been changed to be non-accumulative.
Performance Information Comments
The performance information noted here contains quantitative measurement of some of the activities within this Output Group. Other qualitative performance targets and results are found in the Department's Strategic Plan.
378 Chapter 14: Premier and Cabinet Output Group 2: Government Processes and Services Description
The purpose of this Output Group is to provide support for government processes and services and it includes five Outputs. Output 2.1: Management of Executive Government Processes Management of Executive Government Processes includes administrative support for Executive Government bodies such as Cabinet and the Executive Council, coordination of State protocol, security and other matters. The services provided include preparation, scrutiny and processing of documents, advice to the Governor, Ministers and departments on procedures and administrative policy, management of official visits, State receptions and functions, coordination of the honours and award nomination processes and participation in national counter-terrorism processes. Output 2.2: Principal and Subordinate Legislation In support of this Output, the Office of Parliamentary Counsel provides a service for drafting new legislation, amendments to existing legislation, advice in relation to legislative drafting and an up-to-date electronic database of Tasmanian legislation. Output 2.3: Tasmanian Government Courier In support of this Output, the Courier Service provides:
• collection and sorting of incoming and outgoing mail;
• delivery of mail and small parcels to government departments and regional offices;
• liaison with Australia Post as required; and
• management of all contracts for internal Government mail delivery to the North and North-West of the State. Output 2.4: Corporate Support to Ministerial and Parliamentary Offices and the Office of the Governor The Corporate Services Division provides support to the Ministerial and Parliamentary offices and the Office of the Governor. These include financial management, human resources management, information management, asset management and planning and executive support. Output 2.5: Representation in Canberra The Tasmanian Government Office (TGO) in Canberra operates on behalf of all State agencies to identify and develop opportunities for Tasmania by:
• ensuring a more informed understanding among State agencies of Commonwealth Government policies and initiatives, particularly those impacting on Tasmania;
• promoting improved understanding of the Tasmanian Government's interests and priorities among Commonwealth departments and other organisations in Canberra; and
• identifying Commonwealth funding programs, which might be of benefit to the State, and providing timely information and advice to Tasmanian organisations and individuals.
Chapter 14: Premier and Cabinet 379 Table 14.4: Summary Financial Information - Output Group 2 2003-04) 2004-05) Government Processes and Services Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 5 726) 7 037) 22.9) Sales of Goods and Services 396) 402) 1.5) TOTAL 6 122) 7 439) 21.5)
OPERATING EXPENSES Employee Entitlements2 Salaries and Wages 2 830) 3 395) 20.0) Other Employee Related Expenses 281) 346) 23.1) Superannuation2 338) 392) 16.0) Depreciation and Amortisation 50) 50) ....) Grants and Transfer Payments 829) 889) 7.2) Supplies and Consumables Consultants 51) 51) ....) Maintenance and Property Services3 601) 718) 19.5) Communications 85) 90) 5.9) Information Technology4 290) 408) 40.7) Travel and Transport5 77) 146) 89.6) Advertising and Promotion6 109) 411) 277.1) Other Supplies and Consumables7 404) 508) 25.7) TOTAL 5 945) 7 404) 24.5)
EXPENSE BY OUTPUT 2.1 Management of Executive Government Processes8 2 796) 3 965) 41.8) 2.2 Principal and Subordinate Legislation 1 465) 1 667) 13.8) 2.3 Tasmanian Government Courier 455) 475) 4.4) 2.4 Corporate Support to Ministerial and Parliamentary Offices and the Office of the Governor 917) 947) 3.3) 2.5 Representation in Canberra 312) 350) 12.2) TOTAL 5 945) 7 404) 24.5)
Notes: 1. The increase in the Annual Appropriation provides for additional staffing resources to assist with the provision of enhanced policy development, implementation of the Whole–of-Government Communications Policy across Government (this includes the Concessions Booklet, enhancement of the Government internet gateway and centralisation of whole-of-government projects such as the annual agricultural show displays), additional resources for the Office of Parliamentary Counsel, a salary increase in accordance with the State Service Wages Agreement, increased financial assistance to community organisations, increased accommodation rental costs, upgrading of IT infrastructure, introduction of the Frank McDonald Memorial Essay Competition and transfer of the Portfolio Services Unit from Output Group 1 to Output Group 2 to better reflect the role of the Unit.
380 Chapter 14: Premier and Cabinet 2. The increase in Employee Entitlements and Superannuation reflects the provision of additional staffing resources to assist with the delivery of enhanced policy development, the implementation and administration of the Whole-of-Government Communications Policy, additional resources for the Office of Parliamentary Counsel, transfer of the Portfolio Services Unit from Output Group 1 to Output Group 2, and the salary increase provided in accordance with the State Service Wages Agreement. 3. The increase for Maintenance and Property Services provides for additional accommodation for the Office of Parliamentary Counsel, relocation of the Tasmanian Government Office in Canberra and increases in accommodation rental costs in accordance with lease agreements. 4. The increase for Information Technology provides for additional costs to support the information technology infrastructure, including IT applications used by the Department. The IT applications supported include the EnAct legislation system. 5. The increase for Travel and Transport provides for travel by a group including successful participants in the Frank McDonald Memorial Essay Competition. The group will visit sites of significance to Australia's participation in World War I. 6. The increase for Advertising and Promotion will provide for implementation of the Whole-of-Government Communications Policy, including the Concessions Booklet, enhancement of the Government internet gateway and centralisation of whole-of-government projects such as the annual agricultural show displays. 7. The increase for Other Supplies and Consumables provides for costs associated with implementation and administration of the Whole-of-Government Communications Policy, costs associated with the Frank McDonald Memorial Essay Competition and a reallocation of corporate support costs to this Output Group. 8. The increase in Management of Executive Government Processes reflects additional staffing resources for the delivery of enhanced policy development, implementation of the Whole–of-Government Communications Policy across Government and the introduction of the Frank McDonald Memorial Essay Competition.
Major Issues and Initiatives for 2004-05
The major issues and initiatives to be addressed by this Output Group in 2004-05 will include: Output 2.1: Management of Executive Government Processes • a continuing focus on counter-terrorism issues as well as the on-going review and refinement of existing processes and procedures; Output 2.2: Principal and Subordinate Legislation • the upgrading of the Legislative Drafting and Automatic Consolidation System, EnAct and the Tasmanian Legislation web site; Output 2.4: Corporate Support to Ministerial and Parliamentary Offices and the Office of the Governor • providing online access for staff to human resources information;
• implementing a departmental information security plan; Output 2.5: Representation in Canberra • consolidating the new strategic direction established for the Office during 2003-04, particularly by:
− delivering high quality and timely reporting and analysis against a list of priority topics as advised by State agencies, including in the context of the 2004 Commonwealth election;
− producing an informative Commonwealth Funding Alert Bulletin for distribution to an expanding list of subscribers;
− ensuring the web site facility is helpful and up-to-date; and
− responding promptly to queries from Tasmanian organisations and individuals on possible Commonwealth funding sources; and
• transferring the Office to a new location following expiry of the current lease at the end of 2004.
Chapter 14: Premier and Cabinet 381 Table 14.5: Performance Information – Output Group 2 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Number of meetings of Cabinet supported Number 41 34 40 40 Number of meetings of Executive Council supported Number 2824 28 28 Number of regional Community Forums supported Number 85 8 10 Number of official visits to Tasmania managed Number 19 20 19 20 Number of official functions organised Number 8 7 88 Number of pieces of correspondence to the Premier handled Number n.a. 6 134 4 700 6 000 Number of hits per year on the Tasmanian Number legislation website (EnAct) (million) 7.6 14.2 7.8 10 Number of regular delivery/ collection points of the Government Courier Service Number 253 259 277 277 Number of reports provided by the TGO to agencies on Commonwealth policies and initiatives Number n.a.n.a. n.a. 50 Number of advisories provided by the TGO to agencies on Commonwealth policies and initiatives Number n.a.n.a. n.a. 500 Number of responses provided by the TGO to Tasmanian inquiries on Commonwealth funding issues Number n.a. n.a. n.a. 100 Number of Tasmanian subscribers to the TGO Funding Alert Bulletin Number n.a. n.a. n.a. 250 Number of visits to the TGO website Number n.a. 43 000 50 000 60 000
Performance Information Comments
The performance information noted here contains quantitative measurement of some of the activities within this Output Group. Other qualitative performance targets and results are found in the Department's Strategic Plan.
Output Group 3: Electronic Services for Government Agencies and the Community Description
The purpose of this Output Group is to provide electronic services for Government agencies and the community and it includes four Outputs.
382 Chapter 14: Premier and Cabinet Output 3.1: ICT Policy Development and Implementation The Inter-Agency Policy and Projects Unit operate under the direction of the Inter-Agency Steering Committee. The Unit is responsible for coordinating the development and implementation of whole-of-government information management and information systems policies and strategies aimed at improving and modernising the operations of government in Tasmania. The Unit manages a number of cross-government and whole-of-government projects, promotes high quality project management methodologies and offers project management advisory and review services to other government agencies. Output 3.2: Management and Ongoing Development of Service Tasmania Service Tasmania is a customer-focused approach to the delivery of government services aimed at making it easier for Tasmanians, especially in rural and regional areas, to do their everyday business with government on a one-stop-shop basis over the counter, over the phone and over the Internet. The Service Tasmania Unit is responsible for the development of services for delivery by three lead agencies responsible for shops, phone services and Service Tasmania Online. The Unit works closely with all State government agencies to identify new services and also forms partnerships with Commonwealth and Local Government organisations to deliver their services through the three Service Tasmania channels. The Unit provides executive support to the Service Tasmania Board. The charter of the Service Tasmania Board is to manage the provision of consistent, high quality customer service, to identify and implement new service delivery opportunities, to undertake marketing activities and to ensure there is appropriate financial and budget control. Output 3.3: Management of TASINET and Networking Tasmania TMD is responsible for managing the Government's telephone services (TASINET) and the outsourced government wide-area data services contract known as Networking Tasmania (NT). The primary focus for both areas is ensuring that agencies receive Australian best practice services in both voice (TASINET) and data (Networking Tasmania) networks and facilities.
The services provided by TASINET include:
• business and operational management of the TASINET voice communications system that provides integrated telephone services to all government agencies;
• a full directory service including a web directory;
• detailed billing reports; and
• project management of new installations.
The NT contract covers the provision of data network and other associated services used by government agencies and enterprises and other customers including Local Government. The services provided by NT in managing the contract include:
• quality assurance;
• benchmarking;
• strategic management; and
• consultancy.
Both groups provide strategic advice to government on future service purchasing options and management strategies.
Chapter 14: Premier and Cabinet 383 Output 3.4: Information Systems Management The services associated with this Output are provided by the Computing and Human Resources (HR) Systems business units of TMD and include:
• facilities management of computing infrastructure on behalf of most government agencies;
• managing business computer applications including HR systems on behalf of most government agencies;
• management of applications systems for agencies;
• business continuity services;
• consultancy in infrastructure planning; and
• provision of payroll and personnel services to agencies.
384 Chapter 14: Premier and Cabinet Table 14.6: Summary Financial Information - Output Group 3 2003-04) 2004-05) Electronic Services for Government Agencies and the Community Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 6 969) 6 970) ....) Grants 1 200) 1 100) (8.3) Sales of Goods and Services 24 556) 25 196) 2.6) TOTAL 32 725) 33 266) 1.7)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 5 371) 5 685) 5.8) Other Employee Related Expenses 715) 736) 2.9) Superannuation 563) 587) 4.3) Depreciation and Amortisation1 488) 291) (40.4) Supplies and Consumables Consultants 74) 57) (23.0) Maintenance and Property Services 778) 764) (1.8) Communications 14 327) 14 713) 2.7) Information Technology2 1 128) 1 304) 15.6) Travel and Transport 122) 110) (9.8) Advertising and Promotion 65) 68) 4.6) Other Supplies and Consumables3 464) 298) (35.8) Other Expenses 8 638) 8 761) 1.4) TOTAL 32 733) 33 374) 2.0)
EXPENSE BY OUTPUT 3.1 ICT Policy Development and Implementation 1 870) 1 784) (4.6) 3.2 Management and Ongoing Development of Service Tasmania 9 645) 9 661) 0.2) 3.3 Management of TASINET and Networking Tasmania 17 899) 18 611) 4.0) 3.4 Information Systems Management 3 319) 3 318) ....) TOTAL 32 733) 33 374) 2.0)
Notes: 1. The reduction in Depreciation and Amortisation is due to the whole-of-government Oracle licence being fully amortised. 2. The increase in Information Technology provides for additional costs to support the information technology infrastructure, including IT applications used by the Department . The increase also provides for costs associated with increased business activity, including increased support provided to agencies by TMD. 3. The reduction in Other Supplies and Consumables is due to the transfer of corporate support costs for TMD across expense categories to Other Expenses to better reflect the nature of the expense.
Chapter 14: Premier and Cabinet 385 Major Issues and Initiatives for 2004-05
The major whole-of-government issues to be addressed by this Output Group in 2004-05 will include: Output 3.1: ICT Policy Development and Implementation • implementing a Framework for Enterprise Architecture, as a whole-of-government blueprint and roadmap to guide how information systems and information technologies are able to support the achievement of the Tasmanian Government's Outcomes;
• supporting major cross-government projects and programs as overseen by the Inter-Agency Steering Committee, such as the Motor Registry Project and the Monetary Penalties Enforcement Project;
• promoting and improving the Tasmanian Government project management methodology and advisory services to agencies;
• identifying good practice and developing appropriate methodology to support significant information management and information systems activities, in particular in the areas of records management and web publishing;
• developing information protection legislation and supporting resources;
• supporting the implementation of the Tasmanian Government Information Security Framework;
• providing policy advice and support for telecommunications opportunities, particularly those presented through infrastructure development;
• facilitating inter-governmental relations with other jurisdictions and the participation in relevant working groups, such as those driven by the Commonwealth/State Online Council; Output 3.2: Management and Ongoing Development of Service Tasmania • increasing the number of customer services available through Service Tasmania over the counter, by phone or by Internet in support of Tasmania Together Benchmark 15.4.2: 'Number of over the counter, over the phone and online government services provided to local communities';
• further developing Local and Commonwealth Government Partnerships to increase the range of cross-jurisdictional customer services in support of Tasmania Together Benchmark 14.1.1: 'Number of cooperative programs between levels of government';
• continuing development of customer service facilities including online systems;
• collaborating with agencies and communities on processes and technologies to improve government service delivery to Tasmanians; Output 3.3: Management of Tasinet and Networking Tasmania • implementing new high bandwidth services to government agency sites including those in rural areas;
• improving service delivery and reducing per unit costs;
• finalising a strategy on how best to provide and manage the telecommunication services required by agencies from 2006 onwards;
• undertaking several trials of new telecommunications services;
386 Chapter 14: Premier and Cabinet Output 3.4: Information Systems Management • promoting and implementing across agencies new services including management reporting and those contained in the whole-of-government Oracle licensing agreement;
• consolidating and improving common-use business applications across government agencies;
• consolidating computers and data storage within and across government;
• ensuring that security affecting information systems is consistent with Government policies; and
• improving service delivery by implementing new international standard procedures.
Table 14.7: Performance Information – Output Group 3 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Average number of attendees per information seminar Number n.a.64 70 70 Number of subscribers to the Project Management List Server Number 245 364 265 430 Number of registrations for the Project Management templates Number 2 208 11 000 7 500 13 000 Number of projects seeking ad hoc support and advice on the application of the Guidelines Number 8 16 35 20 Number of completed and concurrent Advisory and Review services Number 26 27 45 35 Number of services provided over the counter by Service Tasmania Number 406 432 435 475 Number of bill payment services provided over the phone by Service Tasmania Number 47 57 801 90 Number of bill payment services provided over the Internet by Service Tasmania Number 47 59 801 90 Total average cost per year per TASINET phone including rental and call charges $ 635 6852 640 685
Notes: 1. The significant increase in phone and Internet bill payment service targets in 2003-04 was due to a number of Local Government Councils electing to use these services for dog registration renewals. 2. The average cost has increased due to the services with higher access costs being consolidated under the TASINET umbrella and more calls being made to mobile phones which are more expensive than to fixed phones.
Performance Information Comments
The performance information noted here contains quantitative measurement of some of the activities within this Output Group. Other qualitative performance targets and results are found in the Department's Strategic Plan.
Chapter 14: Premier and Cabinet 387 Output Group 4: Industrial Relations and State Service Management Description
This Output Group was previously called State Service Employment and Management. It has been renamed and expanded to now include industrial relations. The purpose of this Output Group is to manage industrial relations and employment in the State Service and it includes three Outputs. Output 4.1: State Service Employment and Management The Minister administering the State Service Act 2000 is the employer of State Servants. This Output includes the services provided to the Minister in that role, including policy and program development and implementation and advice on a wide range of employment and management issues. Particular emphasis is placed on contributing to the achievement of employment and development related goals within Tasmania Together and the leadership and staff exchange components of the Partnership agreements. This Output has the coordinating role for a number of Tasmania Together benchmarks. State Service agencies are also provided with assistance including:
• advice on employment and management policies and practices;
• advice on employment legislation; and
• advice on senior executive appointments.
Training, development and educational programs are also provided on a cost-recovery basis. Output 4.2: Industrial Relations and Policy Advocacy Service This Output covers industrial relations services including:
• research, analysis and policy development on industrial relations issues for the Minister; and
• advocacy, on behalf of the Government, before State and national industrial tribunals. Output 4.3: Support for the State Service Commissioner The primary role of this Output is to provide support to the State Service Commissioner, whose functions as an independent statutory officer include:
• determining breaches of the code of conduct;
• reviewing employment decisions; and
• evaluating employment practices of State Service agencies.
388 Chapter 14: Premier and Cabinet Table 14.8: Summary Financial Information - Output Group 4 2003-04) 2004-05) Industrial Relations and State Service Management Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 2 150) 2 185) 1.7) Sales of Goods and Services 581) 614) 5.7) TOTAL 2 731) 2 799) 2.5)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 1 412) 1 433) 1.5) Other Employee Related Expenses 186) 181) (2.7) Superannuation 158) 151) (4.4) Depreciation and Amortisation 10) 10) ....) Supplies and Consumables Consultants 3) 3) ....) Maintenance and Property Services 224) 262) 17.0) Communications 48) 48) ....) Information Technology 78) 112) 43.6) Travel and Transport 88) 85) (3.4) Advertising and Promotion 11) 8) (27.3) Other Supplies and Consumables 511) 524) 2.5) TOTAL 2 729) 2 817) 3.2)
EXPENSE BY OUTPUT 4.1 State Service Employment and Management 1 197) 1 268) 5.9) 4.2 Industrial Relations and Policy Advocacy Service 486) 498) 2.5) 4.3 Support for the State Service Commissioner 1 046) 1 051) 0.5) TOTAL 2 729) 2 817) 3.2)
Major Issues and Initiatives for 2004-05
The major issues and initiatives to be addressed by this Output Group in 2004-05 will include: Output 4.1: State Service Employment and Management • managing the legislative and policy framework for management of, and employment in, the State Service including a review of aspects of the State Service regulatory framework;
Chapter 14: Premier and Cabinet 389 • contributing to the achievement of the following Tasmania Together Benchmarks:
− 3.1.3: Employer support for volunteers;
− 10.2.2: Number of Aboriginal people employed in the Tasmanian public service;
− 10.6.1: Number of Aboriginal people employed in policy development, planning and management of natural resources;
− 15.1.1: Proportion of people under 29 employed in all levels of government;
− 15.3.2: Number and range of leadership development programs for State and Local Government; and
− 16.1.5: Proportion of employees with flexible leave options;
• contributing to the achievement of the statewide, local and other Partnership agreements;
• developing policies and procedures and providing advice on the application of the legislative and policy framework;
• managing the implementation of the State Service Wages Agreement 2004, including a review of employee classification standards and systems and award related allowances;
• developing and implementing training and learning programs, particularly in the areas of leadership, workplace diversity and performance management;
• investigating issues related to workforce planning and data collection;
• developing strategies to address employment related disadvantage, especially in relation to recent arrivals in Australia, disabled people and youth;
• addressing the growing imbalance in the demographic profile of the State Service; Output 4.2: Industrial Relations and Policy Advocacy Service • finalisation of the wage agreements covering State Service employees; and
• amending the Industrial Relations Act 1984. Output 4.3: Support for the State service Commissioner Activities within this Output assist the State Service Commissioner to perform his statutory obligations and functions as specified in the State Service Act 2000. Details on each of these activities are available in the State Service Commissioner's Annual Report.
390 Chapter 14: Premier and Cabinet Table 14.9: Performance Information – Output Group 4 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target Percentage of milestones achieved involving the Output as set out in Partnership agreement schedules % n.a.n.a. 100 100 Number of leadership development programs Number n.a. n.a. 18 20 Proportion of State Service employees with flexible leave options % n.a. n.a. 90 90
Performance Information Comments
Performance information relating to the exercise of the statutory powers and functions of the State Service Commissioner under Output 4.3 will be reported in the Commissioner's Annual Report to Parliament.
Output Group 5: Tasmania Together Progress Board Description
Tasmania Together is a long-term social, environmental and economic plan for the State's development for a period of 20 years. It provides an overarching framework for planning, budgeting and policy priorities for the Government and non-government sectors. The focus of this Output Group is to provide support to enable the Tasmania Together Progress Board to fulfil its legislative responsibilities and requirements and to:
• monitor and report publicly on progress towards achieving the Tasmania Together goals and benchmarks;
• carry out research and the collection of data in respect to the goals and benchmarks;
• coordinate the process of further developing, refining and revising the goals and benchmarks;
• promote the goals and benchmarks in the broader community; and
• develop coalitions of interest within and between various sectors of the community with respect to Tasmania Together.
The Board publishes annual progress reports and releases additional data between each report. It reviews existing benchmarks and develops targets to complete benchmarks. It manages a register of coalitions of interest and enters into partnerships with community and business organisations that agree to work towards the achievement of the benchmarks.
Chapter 14: Premier and Cabinet 391 Table 14.10: Summary Financial Information - Output Group 5 2003-04) 2004-05) Tasmania Together Progress Board Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 621) 617) (0.6) TOTAL 621) 617) (0.6)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 263) 263) ....) Other Employee Related Expenses 27) 27) ....) Superannuation 36) 35) (2.8) Supplies and Consumables Consultants 8) 8) ....) Maintenance and Property Services 45) 48) 6.7) Communications 7) 7) ....) Information Technology 5) 7) 40.0) Travel and Transport 14) 14) ....) Advertising and Promotion 15) 15) ....) Other Supplies and Consumables 192) 192) ....) TOTAL 612) 616) 0.7)
EXPENSE BY OUTPUT 5.1 Support for Tasmania Together Progress Board 612) 616) 0.7) TOTAL 612) 616) 0.7)
Major Issues and Initiatives for 2004-05
The major issues and initiatives to be addressed by this Output Group in 2004-05 will include:
• preparing the third Tasmania Together Progress Report and tabling it in Parliament;
• promoting Tasmania Together to increase levels of awareness and adoption of the goals and benchmarks by the community;
• extending the Tasmania Together Partners Program with community, business and government organisations to include Tasmania Together goals and benchmarks in their plans;
• increasing levels of cooperative and collaborative activity in the community aimed at the achievement of the goals and benchmarks, including coalitions of interest;
• developing a methodology for the first Five Year Review;
• engaging young people in the Tasmania Together process;
392 Chapter 14: Premier and Cabinet • developing benchmarks requiring targets and reviews of benchmarks as requested by community and business organisations; and
• developing a database to facilitate data collection and reporting and the management of the benchmarks. Performance Information Comments
The Tasmania Together Progress Board has developed a Program Business Plan and three projects, which will enable the Board to meet its legislative responsibilities. Detailed performance information on this Output Group is contained in its Annual Report which is tabled in Parliament.
Output Group 6: Women Tasmania Description
Women Tasmania's role is to ensure all Tasmanian women have the opportunity to participate in the economic, political, civic and cultural life of the community and to ensure that women's needs are recognised and addressed in Government policies, programs and projects. Activities aimed at meeting these objectives include:
• providing policy advice on the interests and concerns of Tasmanian women and facilitating positive outcomes for women from government services;
• promoting gender equity through a range of strategies in priority areas;
• maintaining an information and referral service for women and several public access resource centres in major population centres;
• coordinating a women's development program in the South, North and North-West of the State;
• providing secretariat and project support to the Tasmanian Women's Council, which advises government on issues of concern to women; and
• administering a Women's Development Small Grants Fund.
Women Tasmania works across areas of policy including: women and work; leadership and decision- making; women and safety; and information services. The statewide Women's Development Program provides outreach to regional, rural remote areas of Tasmania, and through its community engagement activities aims to facilitate a network of vibrant and productive regional communities.
Chapter 14: Premier and Cabinet 393 Table 14.11: Summary Financial Information - Output Group 6 2003-04) 2004-05) Women Tasmania Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 1 159) 1 226) 5.8) Grants ....) 12) ....) Sales of Goods and Services 12) 6) (50.0) TOTAL 1 171) 1 244) 6.2)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 663) 693) 4.5) Other Employee Related Expenses 52) 54) 3.8) Superannuation 78) 78) ....) Grants and Transfer Payments1 50) 100) 100.0) Supplies and Consumables Consultants 47) 47) ....) Maintenance and Property Services 91) 95) 4.4) Communications 24) 24) ....) Information Technology 25) 27) 8.0) Travel and Transport 53) 53) ....) Other Supplies and Consumables 64) 70) 9.4) TOTAL 1 147) 1 241) 8.2)
EXPENSE BY OUTPUT 6.1 Women Tasmania - Policy Advice and Community Services 1 147) 1 241) 8.2) TOTAL 1 147) 1 241) 8.2)
Note: 1. The increase for Grants and Transfer payments provides for additional Government financial assistance to women's groups and organisations, in accordance with an election commitment to double the size of the Women's Development Small Grants Fund.
Major Issues and Initiatives for 2004-05
The major issues and initiatives to be addressed by this Output Group in 2004-05 will include:
• establishing a new Women's Resource Centre in North-West Tasmania, and enhancing Women Tasmania Resource Centres in Hobart and Launceston;
• expanding and supporting a network of Women's Information Rooms around Tasmania in order to foster vibrant and diverse rural, regional and remote communities that are connected to each other and the rest of the world;
• facilitating social and economic development strategies, including pilot projects for target groups who face additional barriers to achieving full participation. The aim is to foster an inclusive and socially just
394 Chapter 14: Premier and Cabinet society that acknowledges and respects our multicultural and aboriginal heritage, values diversity and treats individuals with compassion and respect;
• identifying and facilitating improved outcomes for women in the paid work force, and promoting best practice strategies in relation to flexible, family friendly workplaces;
• promoting best practice responses to enhance women's safety in respect of family violence, sexual assault and rape with the aim of developing a community where women are, and feel safe;
• promoting, developing and enhancing women's achievements and representation in leadership roles in public affairs and the community;
• increasing women's access to, and participation in decision-making;
• increasing career and lifestyle choices for young women, through mentoring partnerships with Tasmanian High Schools, and through strategies aimed to promote and retain women in vocational and life-long education;
• building the capacity of women in the community, in particular women from disadvantaged groups, and rural communities, to identify and access available government services, and to enhance opportunities for economic and social participation;
• enhancing on-line information, and promoting Internet access for women; and
• consulting with women on issues of concern, through the Tasmanian Women's Council.
Table 14.12: Performance Information – Output Group 6 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Representation of women on Government boards and committees % 32 34 34 35 Proportion of women in senior management1 % 28 28 30 30 Pay equity ratio between female and male wages (based on adult ordinary-time full time earnings) % 8889 90 90 Number of people using Women Tasmania resource centres Number 10 688 11 342 12 500 14 000 Number of hits on Women Tasmania web site Number 64 007 105 886 75 000 110 000
Note: 1. Refers to State Senior Executive Service (SES) positions.
Performance Information Comments
The performance information noted here contains quantitative measurement of some of the activities within this Output Group. Other qualitative performance targets and results are found in the Department's Strategic Plan.
Chapter 14: Premier and Cabinet 395 Output Group 7: Development of Local Government Description
The Local Government Division provides a link between State and Local Government in Tasmania. The objectives are to:
• develop and review bilateral, regional and statewide Partnership agreements with Tasmanian councils; and
• maintain and develop a clear policy and legislative framework for matters relevant to Local Government.
Services include:
• portfolio support to the Premier, Hon Paul Lennon MHA, and the Minister Assisting the Premier on Local Government, Hon Jim Cox MHA, including executive support to the Premier's Local Government Council;
• advice to and liaison with the Secretary of the Department of Premier and Cabinet in regard to Local Government;
• development, implementation, monitoring and review of bilateral, regional and statewide Partnership agreements with Tasmanian councils;
• development of policy and legislation with regard to Local Government, including ongoing administration;
• administration of the Local Government Act 1993;
• ongoing administration of the Dog Control Act 2000, Burial and Cremation Act 2002, Local Government (Highways) Act 1981, Southern Regional Cemetery Act 1981 and other legislation for which the Division is responsible;
• research and analysis of issues relevant to Local Government and current practice;
• enhancement of Local Government, including:
− executive support to the Local Government Board and its reviews of councils;
− provision of executive support to the Key Performance Indicators (KPI) Committee and undertaking the ongoing management of the Local Government KPI Project; and
− provision of professional development services to Local Government;
• inter-governmental communication, liaison and ongoing stakeholder management, including liaison with the Local Government Association of Tasmania (LGAT), Local Government Managers Australia (LGMA) and publication of the Local Government Division Bulletin; and
• provision of advice to councils and responses to community queries and/or complaints.
396 Chapter 14: Premier and Cabinet Table 14.13: Summary Financial Information - Output Group 7 2003-04) 2004-05) Development of Local Government Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 1 690) 1 685) (0.3) TOTAL 1 690) 1 685) (0.3)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 870) 886) 1.8) Other Employee Related Expenses 89) 90) 1.1) Superannuation 114) 112) (1.8) Supplies and Consumables Consultants 10) 10) ....) Maintenance and Property Services 172) 177) 2.9) Communications 24) 24) ....) Information Technology 50) 53) 6.0) Travel and Transport 116) 116) ....) Advertising and Promotion 22) 22) ....) Other Supplies and Consumables 192) 192) ....) TOTAL 1 659) 1 682) 1.4)
EXPENSE BY OUTPUT 7.1 Development of Local Government 1 659) 1 682) 1.4) TOTAL 1 659) 1 682) 1.4)
Major Issues and Initiatives for 2004-05
The major issues and initiatives to be addressed by this Output Group in 2004-05 will include:
• finalising the review of the Local Government Act 1993 and overseeing implementation of the reforms;
• facilitating the negotiation, implementation, evaluation and review of a number of bilateral, regional and statewide Partnership agreements;
• providing executive support for the Premier's Local Government Council and Officials Committee;
• monitoring and reviewing the State-Local Government Consultation and Communication guidelines;
• further developing a legislative program relating to Local Government;
• processing Council by-laws;
• undertaking a number of Local Government Board reviews of Councils;
• promoting better management and operational practices within Local Government;
Chapter 14: Premier and Cabinet 397 • ongoing implementation of the Key Performance Indicators program; and
• developing key strategies that link Tasmania Together and Local Government priorities.
Table 14.14: Performance Information – Output Group 7 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Number of bilateral, regional, and statewide Partnership agreements signed Number 6 8 7 8 Number of Partnership agreements being implemented Number 1220 32 33 Number of Local Government Board general reviews of initial round completed Number 5 5 5 5 Percentage of Premier/ Ministerial correspondence responded to within 10 working days from receipt of all advice required % 88 92 92 94 Number of visits to front page of Division's web site Number 71 000 114 0001 86 000 110 000
Note: 1. The 2002-03 target was significantly exceeded due to considerable growth in the use of the web site.
Performance Information Comments
The performance information noted here contains quantitative measurement of some of the activities within this Output Group. Other qualitative performance targets and results are found in the Department's Strategic Plan.
398 Chapter 14: Premier and Cabinet Administered Items Grants and Subsidies
Table 14.15 provides a summary of administered Grants and Subsidies paid by the Department of Premier and Cabinet. A brief description follows the Table.
Table 14.15: Grants and Subsidies Financial Summary for the Department of Premier and Cabinet 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) REVENUE Other Revenue1 3 831) 962) (74.9) TOTAL 3 831) 962) (74.9)
EXPENSES Regional Forest Agreement2 1 126) 5 743) 410.0) TOTAL 1 126) 5 743) 410.0)
Notes: 1. The decrease in Other Revenue in 2004-05 reflects the cessation of revenue for the Private Forest Reserve Program. 2. The increase reflects the level of funding to be distributed from funding already received under the Regional Forest Agreement and the Private Forests Reserve Program.
Regional Forest Agreement These payments represent the distribution of Commonwealth funding under the Regional Forest Agreement and Private Forests Reserve Program for forest industry developments and environmental and socio-economic projects. Other Grants and Subsidies funded under Outputs
A number of grants programs are funded by the Department of Premier and Cabinet. These are funded directly under Outputs. A brief description of these programs follows. Family Assistance Program The item provides special funding for five welfare organisations undertaking programs to support Tasmanian families. The funding is available for emergency relief, as well as preventative and support programs or research designed to reduce the need for emergency relief. Grants under this program are not available to meet administrative overheads. Funding under this program is designed to supplement other available funding sources. Recipient organisations are expected to maintain their efforts to secure funding from other sources. This program is funded under Output 2.1 – Management of Executive Government Processes.
Chapter 14: Premier and Cabinet 399
Sundry Grants – Aboriginal Affairs This program provides grants to the Tasmanian Aboriginal Centre Inc, to assist Aboriginal first home buyers and Aboriginal charitable institutions with the payment of stamp duty costs and the Aboriginal Land Council of Tasmania, to assist with the management of land returned to the Aboriginal community. This grants program is funded under Output 1.4 Aboriginal Affairs - Policy Advice and Community Services. Sundry Grants – Multicultural Tasmania This program provides grant assistance to groups and organisations to assist Tasmania's culturally diverse community to access government services and foster respect for, and understanding of, cultural diversity in Tasmania. This grant program is funded under Output 1.5 Multicultural Tasmania – Policy Advice and Community Services. Sundry Grants - Premier A discretionary grants program is maintained to allow the Premier to meet requests received to provide limited financial assistance to groups or individuals. These grants are designed to support valued community and cultural activities with national, statewide or local significance. This grants program is funded under Output 2.1 - Management of Executive Government Processes. Sundry Grants – Seniors Bureau This program provides grant assistance to the Council of the Ageing to assist seniors in the community. This grant program is funded under Output 1.3 Seniors Bureau – Policy Advice and Community Services. Sundry Grants - Women Tasmania The annual Women's Development Small Grants program provides small, non-recurrent grants to individuals and organisations to undertake projects that will promote equality of opportunity for women and enhance their social and economic well being. Priority for funding is given to women with limited access to social and economic resources and to projects that are of benefit to a large number of women or to groups of women with special or particular needs. This grants program is funded under Output Group 6 Women Tasmania. University Scholarships The Tasmania Scholarships Program offers financial assistance on the basis of merit to qualified people wishing to study at the University of Tasmania. The Program is a key element in activities by the University to capitalise on the potential of Tasmania to become a national and international higher education destination. The Tasmania Scholarships Program is designed to encourage local students to stay in the State and to attract top national and international students to the University of Tasmania. This item provides for a contribution by the State Government to the Tasmania Scholarships Program. The program is funded under Output 2.1 – Management of Executive Government Processes.
400 Chapter 14: Premier and Cabinet Revenue Collected on Behalf of the Consolidated Fund
Table 14.16: Revenue Collected on Behalf of the Consolidated Fund 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) REVENUE Sales of Goods and Services 2) 2) ....) TOTAL REVENUE 2) 2) ....)
Transfers to the Consolidated Fund Other Sales of Services 2) 2) ....) TOTAL TRANSFERS TO THE CONSOLIDATED FUND 2) 2) ....)
Chapter 14: Premier and Cabinet 401 DETAILED BUDGET STATEMENTS
Table 14.17: Output Group Expense Summary for the Department of Premier and Cabinet 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) Premier Output Group 1 - Support for Executive Decision Making 1.1 Strategic Policy and Advice1 2 024) 2 393) 18.2) 1.2 Management of Policy Projects 2 200) 2 224) 1.1) 1.3 Seniors Bureau - Policy Advice and Community Services 488) 625) 28.1) 1.4 Aboriginal Affairs - Policy Advice and Community Services 610) 652) 6.9) 1.5 Multicultural Tasmania - Policy Advice and Community Services 357) 443) 24.1) 5 679) 6 337) 11.6) Output Group 2 - Government Processes and Services 2.1 Management of Executive Government Processes2 2 796) 3 965) 41.8) 2.2 Principal and Subordinate Legislation 1 465) 1 667) 13.8) 2.3 Tasmanian Government Courier 455) 475) 4.4) 2.4 Corporate Support to Ministerial and Parliamentary Offices and the Office of the Governor 917) 947) 3.3) 2.5 Representation in Canberra 312) 350) 12.2) 5 945) 7 404) 24.5) Output Group 3 - Electronic Services for Government Agencies and the Community 3.1 ICT Policy Development and Implementation 1 870) 1 784) (4.6) 3.2 Management and Ongoing Development of Service Tasmania 9 645) 9 661) 0.2) 3.3 Management of TASINET and Networking Tasmania 17 899) 18 611) 4.0) 3.4 Information Systems Management 3 319) 3 318) ....) 32 733) 33 374) 2.0) Output Group 4 - Industrial Relations and State Service Management 4.1 State Service Employment and Management 1 197) 1 268) 5.9) 4.3 Support for the State Service Commissioner 1 046) 1 051) 0.5) 2 243) 2 319) 3.4) Output Group 5 - Tasmania Together Progress Board 5.1 Support for Tasmania Together Progress Board 612) 616) 0.7) 612) 616) 0.7)
402 Chapter 14: Premier and Cabinet Table 14.17: Output Group Expense Summary for the Department of Premier and Cabinet (continued) 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) Output Group 7 - Development of Local Government 7.1 Development of Local Government 1 659) 1 682) 1.4) 1 659) 1 682) 1.4)
Grants and Subsidies3 1 126) 5 743) 410.0)
Minister for Women Tasmania Output Group 6 - Women Tasmania 6.1 Women Tasmania - Policy Advice and Community Services 1 147) 1 241) 8.2) 1 147) 1 241) 8.2)
Minister for Justice and Industrial Relations Output Group 4 - Industrial Relations and State Service Management 4.2 Industrial Relations and Policy Advocacy Service 486) 498) 2.7) 486) 498) 2.7)
TOTAL AGENCY 51 630) 59 214) 14.7)
Notes: 1. The increase in Strategic Policy and Advice reflects the provision of additional staffing resources for the delivery of enhanced policy development. 2. The increase in Management of Executive Government Processes represents additional staffing resources to assist with the provision of enhanced policy development, implementation of the Whole–of-Government Communications Policy across Government (this includes the Concessions Booklet, enhancement of the Government internet gateway and centralisation of whole-of-government projects such as the annual agricultural show displays), and the introduction of the Frank McDonald Memorial Essay Competition 3. The increase in Grants and Subsidies reflects the level of funding to be distributed from funding already received under the Regional Forest Agreement and the Private Forests Reserve Program.
Chapter 14: Premier and Cabinet 403 Table 14.18: Statement of Financial Performance for the Department of Premier and Cabinet 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 23 859) 25 952) 8.7) Grants 1 213) 1 117) (8.0) Sales of Goods and Services 25 610) 26 319) 2.7) TOTAL 50 682) 53 388) 5.3)
OPERATING EXPENSES Employee Entitlements 15 742) 17 170) 9.0) Superannuation 1 590) 1 683) 5.8) Depreciation and Amortisation1 573) 376) (34.4) Grants and Transfer Payments2 1 082) 1 347) 24.4) Supplies and Consumables 22 879) 24 134) 5.4) Other Expenses 8 638) 8 761) 1.4) TOTAL 50 504) 53 471) 5.8)
NET OPERATING RESULT 178) (83) (146.7)
ADMINISTERED ITEMS
REVENUE Investment Income3 831) 962) 15.7) Grants4 3 000) ....) (100.0) Sales of Goods and Services 2) 2) ....) TOTAL 3 833) 964) (74.9)
EXPENSES Grants and Subsidies Other Expenses5 1 126) 5 743) 410.0) Total Grants and Subsidies 1 126) 5 743) 410.0) Transfer to the Consolidated Fund 2) 2) ....) TOTAL 1 128) 5 745) 409.3)
Notes: 1. The reduction for Depreciation and Amortisation reflects the whole-of-government Oracle licence being fully amortised. 2. The increase for Grants and Transfer Payments reflects the provision of additional funding for financial assistance through grant programs controlled by the Department, including the Sundry Grants programs for the Premier, Multicultural Tasmania, the Seniors Bureau and Women Tasmania and the Tasmanian Scholarships Program. 3. The increase reflects Interest Income expected on the undistributed balance of funding held and invested in relation to the Regional Forest Agreement compensation and the Private Forests Reserve Program.
404 Chapter 14: Premier and Cabinet 4. The decrease in Grants reflects the cessation of revenue received for the Private Forest Reserve Program. 5. The increase for Other Expenses reflects the level of funding to be distributed under the Regional Forest Agreement and the Private Forests Reserve Program.
Table 14.19: Statement of Financial Position as at 30 June for the Department of Premier and Cabinet 2004) 2005) Budget) Budget) Variation) $'000) $'000) %) CURRENT ASSETS Cash1 2 882) 3 297) 14.3) Receivables 2 918) 3 190) 9.3) Prepayments 403) 410) 1.7) Accrued Revenue 245) 245) ....) Other 29) 23) (20.7) TOTAL 6 477) 7 165) 10.6)
NON-CURRENT ASSETS Plant and Equipment 877) 891) 1.5) TOTAL 877) 891) 1.5)
TOTAL ASSETS 7 354) 8 056) 9.5)
CURRENT LIABILITIES Payables 930) 887) (4.7) Employee Entitlements 2 251) 2 452) 8.9) Accrued Expenses 222) 190) (14.5) Other 997) 997) ....) TOTAL 4 400) 4 526) 2.8)
NON-CURRENT LIABILITIES Employee Entitlements 1 923) 2 017) 4.8) TOTAL 1 923) 2 017) 4.8)
TOTAL LIABILITIES 6 323) 6 543) 3.4)
NET ASSETS 1 031) 1 513) 46.7)
Chapter 14: Premier and Cabinet 405 Table 14.19: Statement of Financial Position as at 30 June for the Department of Premier and Cabinet (continued) 2004) 2005) Budget) Budget) Variation) $'000) $'000) % ADMINISTERED ITEMS
CURRENT ASSETS Cash2 18 231) 14 338) (21.4) Tax Assets3 306) ....) (100.0) TOTAL 18 537) 14 338) (22.7)
NON-CURRENT ASSETS TOTAL ....) ....) ....)
TOTAL ASSETS 18 537) 14 338) (22.7)
CURRENT LIABILITIES TOTAL ....) ....) ....)
NON-CURRENT LIABILITIES Tax Liabilities3 ....) 55) ....) TOTAL ....) 55) ....)
TOTAL LIABILITIES ....) 55) ....)
NET ASSETS 18 537) 14 283) (23.0)
Notes: 1. The increase in Cash expected as at 30 June 2005 in the Department's Operating Account reflects additional retained revenue from business activities and accrued leave transfer funding. 2. The reduction in Administered Cash reflects the distribution of funding under the Regional Forest Agreement and the Private Forests Reserve Program. 3. The change from a Tax Asset to a Tax Liability is due to a reassessment of the estimated net GST payable by the Department of Premier and Cabinet at 30 June 2005.
406 Chapter 14: Premier and Cabinet Table 14.20: Statement of Cash Flows for the Department of Premier and Cabinet 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) CASH FLOWS FROM OPERATING ACTIVITIES Receipts Revenue from Government Appropriation 23 859) 25 952) 8.7) Grants 1 213) 1 117) (8.0) Sales of Goods and Services 25 610) 26 319) 2.7) Payments Employee Entitlements (15 996) (17 100) 6.9) Superannuation (1 590) (1 683) 5.8) Grants and Transfer Payments1 (1 082) (1 347) 24.4) Supplies and Consumables (22 879) (24 134) 5.4) Other Payments (8 638) (8 761) 1.4) NET CASH FROM/(USED IN) OPERATING ACTIVITIES 497) 363) (27.0)
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of Fixed Assets2 (532) (440) (17.3) NET CASH FROM/(USED IN) INVESTING ACTIVITIES (532) (440) (17.3)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held (35) (77) 120.0)
Cash at the Beginning of Reporting Period 2 917) 3 374) 15.6)
Cash at the End of Reporting Period 2 882) 3 297) 14.3)
Chapter 14: Premier and Cabinet 407 Table 14.20: Statement of Cash Flows for the Department of Premier and Cabinet (continued) 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) ADMINISTERED ITEMS
CASH FLOWS FROM OPERATING ACTIVITIES Receipts Interest Received3 831) 962) 15.7) Grants4 3 000) ....) (100.0) Sales of Goods and Services 2) 2) ....) GST Receipts 5 134) 5 134) ....) Payments Transfers to the Consolidated Fund (2) (2) ....) GST Payments (5 134) (5 134) ....) Other Payments5 (1 126) (5 743) 410.0) NET CASH FROM/(USED IN) OPERATING ACTIVITIES 2 705) (4 781) (276.8)
CASH FLOWS FROM INVESTING ACTIVITIES NET CASH FROM/(USED IN) INVESTING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held 2 705) (4 781) (276.8)
Cash at the Beginning of Reporting Period 15 526) 19 119) 23.1)
Cash at the End of Reporting Period 18 231) 14 338) (21.4)
Notes: 1. The increase for Grants and Transfer Payments reflects the provision of additional funding for financial assistance through grant programs controlled by the Department, including the Sundry Grants programs for the Premier, Multicultural Tasmania, the Seniors Bureau and Women Tasmania and the Tasmanian Scholarships Program. 2. The reduction in Purchase of Fixed Assets reflects the decreased investment in new information technology infrastructure required by TMD in 2004-05. 3. The increase reflects Interest Income expected on the undistributed balance of funding held and invested in relation to the Regional Forest Agreement compensation and the Private Forests Reserve Program. 4. The decrease in Grants is due to the cessation of revenue for the Private Forest Reserve Program. 5. The increase for Other Payments reflects the level of funding to be distributed from funding already received under the Regional Forest Agreement and the Private Forests Reserve Program.
408 Chapter 14: Premier and Cabinet Table 14.21: Reconciliation of Operating Expenses to Consolidated Fund Appropriation 2003-04 2004-05 Budget Budget $'000 $'000
Total Operating Expenses 51 195) 59 214)
Adjustments for Non-Cash Items Depreciation (573) (376) Employee Entitlements 246) (70) Supplies and Consumables ....) ....) Total Cash Cost of Outputs 50 868) 58 768)
Other Funding Sources (27 984) (33 256) Purchase of Capital Items 532) 440)
Total Consolidated Fund Appropriation 23 416) 25 952)
Chapter 14: Premier and Cabinet 409
15 DEPARTMENT OF PRIMARY INDUSTRIES, WATER AND ENVIRONMENT
AGENCY OUTLINE
The Department of Primary Industries, Water and Environment manages Tasmania's natural resources - our air, land, water, plants and animals – in a sustainable way so that the Tasmanian community benefits.
The Department drives sustainable development of Tasmania's natural resources by playing a central role in industry development, land and water management practices, land information services and the conservation and protection of Tasmania's natural environment.
The Department's activities underpin many of the actions undertaken across Government and the private sector such as environmental health, industrial assessments, primary industry production, nature conservation, maintenance of the State's cadastral mapping system and delivery of Government services through Service Tasmania. It is also the Government's primary interface with rural and regional communities. Recognising the integral nature of these activities, the Department continues to foster partnerships with the community, interest groups, Local and Commonwealth Government agencies, other State Government agencies and the private sector.
The Department is also responsible for the administration of the State's Crown land and is custodian of venues such as the Theatre Royal and the Salamanca Arts Centre in Hobart and Tasdance in Launceston.
The Department has seven divisions. The operational divisions are Information and Land Services; Food, Agriculture and Fisheries; Resource Management and Conservation; Environment; Water Resources and Strategic Policy and Planning. The activities of these divisions are closely aligned with the Department's Output structure. The Corporate Management Division provides internal services supporting the activities and objectives of the operational divisions.
STRATEGIC FOCUS
In order to fulfil the Government's objectives, including meeting community aspirations as expressed through Tasmania Together, the Department identified the following key Outcomes as defined in the Department's Corporate Plan:
• sustainable and profitable agriculture, aquaculture and fishing industries;
• a conserved natural heritage and environment;
• a healthy and clean environment;
Chapter 15: Primary Industries, Water and Environment 411 • a foundation for investment in Tasmania; and
• self-reliant rural and regional communities.
Tasmania has a national and international reputation as a region with a largely unspoilt environment. This reputation is instrumental in attracting visitors, is prized by Tasmanians and is valuable in marketing a number of our products.
The global community is increasingly demanding products that are not just good quality, but come from a clean environment and are produced using sustainable natural resource management practices.
Tasmania Together has a strong emphasis on the importance of natural resource management and the balance between economic, social and environmental outcomes. The Government has nominated three priority benchmarks as a high priority for this Department. These benchmarks aim to:
• maintain the quality of our water so natural ecosystems are supported (Benchmark 24.7.2);
• manage our land, one of the State's major natural resource assets, in a sustainable way (Benchmark 23.4.1); and
• minimise the impact of projected climatic changes (Benchmark 24.6.3).
The Government has a strong focus on building upon Tasmania's social capital and sharing the benefits of an improving economy. The environment is central to the well being of Tasmanians. It is fundamental to the many economic activities from primary industry production through to tourism. The prosperity of rural and regional communities depends on a healthy and clean environment.
KEY STRATEGIES
In order to achieve the above Outcomes, the Department of Primary Industries, Water and Environment is implementing the following strategies:
• Facilitating the management of our natural resources:
The Tasmanian Natural Resource Management Framework was launched in 2002. The Framework provides a systematic way of integrating natural resource management to ensure consistency, efficiency and improved outcomes. An important element of the Framework is the development and implementation of three Regional Strategies for the North, North West and South. The Framework will strengthen regional communities by ensuring that environmental programs target priorities identified by the regions, and will allow local communities to address environmental problems. (Tasmania Together Goals 22 - Value, protect and maintain our natural diversity; 23 - Ensure there is a balance between environmental protection and economic and social development; and 24 – Ensure our natural resources are managed in a sustainable way now and for future generations);
412 Chapter 15: Primary Industries, Water and Environment • Sustainable water development:
Tasmania's economic, social and environmental future depends on clean, healthy and productive rivers, wetlands and estuaries. The major strategic focus for 2004-05 is to continue to facilitate community-driven sustainable water development projects consistent with the Water Development Plan, improve community access to water information to support water development and management decisions, accelerate the development of statutory Water Management Plans and to bring current water usage within the provisions of the statutory framework while making water users more accountable for their use of the resource. (Tasmania Together Benchmarks 24.7.1 – Proportion of measurement sites showing no increase in turbidity; and 24.7.2 – Number of sampling sites which maintain or improve their Australian River Assessment System (AusRivAS) bands and number of sampling sites which deteriorate);
• Achieving a healthy and clean environment:
Maintaining our quality environment is vital to the health and well being of all Tasmanians. Air, water, noise, contaminated sites and waste management are the key elements that impact on the state of the environment and need to be managed through monitoring programs, improved sustainable management practices, remediation and mitigation programs. (Tasmania Together Goal 24 – Ensure our natural resources are managed in a sustainable way now and for future generations);
• Expanding access to land information:
Complete and accessible land information underpins new business opportunities, improved business planning, informed investments and improved emergency response procedures. Land data is held in the Land Information System Tasmania (LIST), the Government's land information system which is maintained by this Department. The major focus for the coming year is to increase the functionality and expand access to the LIST by making more information more easily available. (A number of economic and environmental goals within Tasmania Together are dependent upon access to accurate land information provided through the LIST);
• Increasing the contribution of primary industries to the Tasmanian economy and community:
The Government is committed to increasing the contribution of Tasmania's primary industries, launching in November 2003 the State of Growth Strategy. This Strategy lays the foundation for achieving growth in the primary industry sector through programs focusing on profitability, competitiveness and sustainability for Tasmania's primary industries and market access. Implementation of programs under this Strategy will closely involve the primary industry sector and the Department of Economic Development. (Tasmania Together Benchmark 20.2.4 – Primary industry exports);
• Minimising the impact of pests, weeds and disease:
Tasmania is relatively free of pests and diseases which is important to support Tasmania's healthy environment and primary industries. Barrier control, monitoring and surveillance activities and industry response to pest and disease incursions maintain this important position. To ensure Tasmania remains relatively free of pests and diseases, the Department is improving quarantine protection both pre and post barrier, managing pest incursions through weed management plans and ensuring we are ready to manage an emergency disease outbreak. (Tasmania Together Benchmarks 23.4.2 – Number of new pests established, and 24.9.1 – Number of naturalised organisms);
Chapter 15: Primary Industries, Water and Environment 413 • Validating our clean and green image:
Tasmania's international clean and green image is based on our natural environment and perceived healthy environmental practices. Markets are increasingly demanding validation of these claims. Validating Tasmania's clean and green image is more than an advertising campaign. It is making sure our on-farm practices are environmentally sustainable, and that our air, water and land are clean and healthy. (Tasmania Together Goal 20 – Promote our island advantages including our ′clean-green′ image, natural resources, location and people; and Benchmark 23.4.1 – Percentage of land independently certified for land management against international, national and State standards);
• Facilitating sustainable development in Tasmania:
With increasing emphasis on new industry development such as Basslink and the Tasmanian Natural Gas Project, the Department continues to facilitate the activities involved in planning and approval processes for the State's major projects, as well as having coordinating responsibility for the State's Resource Management and Planning System (RMPS). A major strategy commencing in 2004-05 is the improvement of the planning system to enhance the State's environment and to support Tasmania's development. Also addressed through planning systems will be the development of adaptation strategies to address climate change impacts. A review of the Tasmania's Crown land assets is also being undertaken to ensure they are being managed strategically to increase the return to the State on these assets. (Tasmania Together Benchmark 21.1.1 – An enhanced planning system and Benchmark 24.6.3 – Levels of greenhouse gas emissions); and
• Supporting our natural diversity:
Tasmania has a rich and diverse natural environment, unique animals, plants and geoheritage. Increasingly the importance of the world's natural heritage is being recognised. As Tasmania grows and develops, there is an increasing demand to ensure that our natural environment is conserved and that there is no further loss to our unique species and the habitats and ecosystems that support them. As part of this strategy, the Department is implementing programs to address threatened communities and continuing with programs to eradicate foxes and to address the Tasmanian devil facial tumour disease. (Tasmania Together Goal 22 – Value, protect and maintain our natural diversity and Goal 24 – Ensure our natural resources are managed in a sustainable way now and for future generations).
2004-05 MAJOR INITIATIVES
In 2004-05, the Department is focusing on three key initiatives:
• implementing the Natural Resource Management Framework to implement the State's natural resource management legislation and ensure the three tiers of government and the community work together effectively. To fulfil the State's commitments to natural resource management and to support the Regional Committees to address issues of strategic importance, the Government has allocated over $1 million of new funding for 2004-05, and over $1.5 million for each of the three years after that. (Tasmania Together Goal 24 – Ensure our natural resources are managed in a sustainable way now and for future generations, and Benchmark 10.6.2 – Level of Aboriginal satisfaction with processes and outcomes in natural resource management);
• progressing commitments under the Regional Forest Agreement (RFA). Over $4 million has been allocated over the next four years to support nature conservation and diversity programs. The funds will
414 Chapter 15: Primary Industries, Water and Environment be used to meet the State's obligations under the RFA with particular focus on the Private Forest Reserve Program, information management mapping tools and threatened species management; and
• implementing the Environment Protection Policy on Air Quality, including the development of an Air Quality Management Plan and improving air quality monitoring to meet the increased requirements of National Environment Protection Measures. Funding of $370 000 has been allocated in the 2004-05 Budget to significantly upgrade and expand Tasmania's air quality monitoring system. (Tasmania Together Benchmark 24.3.1 – Breaches of National Environment Protection Measures for air standards).
Other major initiatives in 2004-05 include:
• facilitating the development of adaptation strategies to address climate change impacts, in particular those associated with changing sea levels, temperature and water availability;
• continuing the State's commitment to remediation of acid drainage from the Mt Lyell Copper Mine lease;
• developing and implementing vegetation management agreements in partnership with land holders to ensure the sustainable management of vegetation on private land;
• facilitating improvements to the RMPS to enhance the State's environment and to support Tasmania's development;
• managing the Simplifying Planning Schemes Project in partnership with Local Government with a view to a more consistent approach to planning schemes;
• playing a leading role in the review of the State Coastal Policy;
• continuing the fox eradication program to eradicate the potentially devastating impact of foxes on Tasmania's native flora, fauna, agricultural industries and tourism industry. A further $2.7 million over the next three years has been committed to continuing this program;
• implementing the Water Development Plan for Tasmania to identify sustainable water development opportunities and facilitating the advancement of these developments to meet Tasmania's economic and social objectives;
• increasing the functionality of the LIST by making the web interface more user friendly and by utilising the LIST infrastructure to provide access to more land related data sets;
• completing phase two of the Shack Sites Project by facilitating the installation of required infrastructure and completing shack site sales;
• continuing to implement the State of Growth Strategy, in particular forming partnerships with industry bodies and working with the Department of Economic Development to open up new market opportunities for Tasmanian produce;
• continuing to upgrade Tasmania's response to an outbreak of a land-based exotic disease;
• developing an integrated food safety risk management system for all primary food production and the associated supply chain by legislation and inter-agency cooperation;
• progressing development and adaptation of an environment certification label for Tasmania's primary industries;
• implementing operational strategies to improve the efficiency of barrier clearance activities, ensure compliance with the requirements of the arrangements with the Australian Quarantine and Inspection
Chapter 15: Primary Industries, Water and Environment 415 Service (AQIS) and manage the increased level of vessel and flight arrivals, including the Spirit of Tasmania vessels. In this Budget, funding for quarantine arrangements relating to the Spirit of Tasmania III have been increased by $380 000 in 2004-05 and $267 000 thereafter;
• completing a number of strategic reforms of the policy framework underpinning the management of Tasmania's environmental quality, in particular:
− finalising the Environment Protection Policy (EPP) on noise;
− introducing contaminated sites legislation;
− introducing a new Litter Act; and
− completing a review of key elements of the Environmental Management and Pollution Control Act 1994;
• leading the response to the Tasmanian devil facial tumour disease;
• implementing the National Environmental Management System in Tasmania (Tasmania Together Benchmark 23.4.1 – Percentage of land independently certified for land management against international, national and state standards);
• continuing to implement the Private Forest Reserve Program for the RFA, to establish and maintain the best possible private land component of the Comprehensive, Adequate and Representative reserve system (Tasmania Together Benchmark 23.1.1 – Percentage of land protected either by legislation or by contract in conservation reserves, under covenant or heritage regimes);
• progressing the implementation of the Tasmanian Marine Protected Areas Strategy which provides for a systematic process to develop a comprehensive, adequate and representative system of marine protected areas (Tasmania Together Benchmark 22.1.4 – Reservation shortfall in relation to marine protected areas);
• improving management of native wildlife and expanding game management to control native game species and promote alternatives to 1080 (Tasmania Together Benchmark 24.5.1 – Levels of usage of 1080);
• progressing strategic irrigation and town water supply development projects to the investment ready stage through the Water Development Plan;
• finalising the strategic plan for the Conservation of Freshwater Ecosystems;
• progressing the development and implementation of the Great Forester, Mersey, Little Swanport, and Clyde Water Management Plans. To ensure the ongoing sustainable management of water an additional $350 000 per annum has been allocated for water management activities from 2004-05 onwards; and
• increasing the security of water dependent businesses and reducing the risk of unsustainable water use by arresting the ongoing creep in water extractions in advance of Water Management Plans through continuation of the Water Use Sustainability Project.
OUTPUT GROUP RESTRUCTURE
In the past year, the Department has completed drafting its Corporate Plan for 2004-06. As part of this process the Department's Output structure was reviewed to reflect the Department's priorities. As a result of this review, the Output Group structure has been changed.
416 Chapter 15: Primary Industries, Water and Environment The major changes to the Output Group structure reflect the increased role the Department is taking in overseeing the State planning system, including taking on a more active role with the Resource Planning and Development Commission in the management of the RMPS.
In addition, the Department provides policy advice across the Department and to whole-of-government on a range of issues relating to natural resource management. Previously this activity was treated as a corporate overhead. As part of the Output Group restructure, the provision of policy advice has become a separate Output. In line with the introduction of accrual budgeting, which requires greater alignment with financial reporting standards, a number of Administered Items have been reclassified to Departmental Outputs. The Department's 2003-04 Budget has been recast to reflect the new Output Group structure.
Chapter 15: Primary Industries, Water and Environment 417 SUMMARY AGENCY 2004-05 BUDGET INFORMATION
Financial Summary
Table 15.1: Summary Financial Information for the Department of Primary Industries, Water and Environment 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 76 274) 80 551) 5.6) Other Revenue2 37 204) 50 288) 35.2) TOTAL 113 478) 130 839) 15.3)
OPERATING EXPENSES Information and Land Services3 45 647) 41 830) (8.4) Food, Agriculture and Fisheries 32 225) 31 536) (2.1) Resource Management and Conservation4 21 623) 32 296) 49.4) Environment Protection and Analytical Services5 11 769) 11 163) (5.1) Water Resources 7 275) 6 989) (3.9) Policy and Planning6 4 068) 4 331) 6.5) Grants and Subsidies 8 484) 8 592) 1.3) Other7 154) 1 180) 666.2) TOTAL 131 245) 137 917) 5.1)
NET OPERATING RESULT (17 767) (7 078) (60.2)
Notes: 1. The increase in the Annual Appropriation relates to funding for new initiatives – support for the Natural Resource Management (NRM) Regional Committees and National Action Plan for Salinity and Water Quality, Regional Forest Agreement (RFA) Review response, quarantine services for the Spirit of Tasmania III and air monitoring equipment. 2. The increase in Other Revenue relates to funding for the Private Forest Reserves Program previously held by the Department of Premier and Cabinet and additional funding for the NRM program. 3. The decrease in Output Group 1 Information and Land Services relates to a revision in the contribution from the Crown Land Administration Fund to the Consolidated Fund. 4. The increase in Output Group 3 Resource Management and Conservation relates to increased funding for the implementation of RFA review recommendations, the Tasmanian Devil Facial Tumour Disease Response Project, new funding for the NRM Program and an increase in expenditure under the Private Forests Reserve Program. 5. The decrease in Output Group 4 Environment Protection and Analytical Services relates to a change in the method of treating the divisional contribution to Analytical Services to eliminate double counting. 6. The increase in Output Group 6 Policy and Planning reflects the establishment of the Land Use Planning Unit and funding for the Climate Change Project. 7. The increase in Other relates to funding from the Capital Investment Program for the Theatre Royal extension and air monitoring equipment.
418 Chapter 15: Primary Industries, Water and Environment Table 15.2: Department of Primary Industries, Water and Environment - Infrastructure Funds
2003-041 2004-05 Budget Budget Variation $'000 $'000 %
Economic and Social Infrastructure Fund (ESIF) Sullivans Cove Development Project1 .... 690 .... Water Infrastructure2 1 500 1 500 .... TOTAL ESIF 1 500 2 190 46.0
Social Infrastructure Fund (SIF) Sullivans Cove Development Project1 1 500 360 (76.0) Water Infrastructure3 .... 1 418 .... TOTAL SIF 1 500 1 778 18.5
Infrastructure Fund (IF) Meander Dam4 7 000 7 000 .... TOTAL IF 7 000 7 000 ....
TOTAL INFRASTRUCTURE FUND ALLOCATIONS 10 000 10 968 9.7
Notes: 1. The Sullivans Cove Development Project of $1.05 million will be funded from the Economic and Social Infrastructure Fund (ESIF) and the Social Infrastructure Fund (SIF) in 2004-05. The total funds allocated to this project over the two years 2003-04 and 2004-05 is $1.5 million. 2. In 2004-05, funding of $1.5 million will be allocated from the ESIF for Water Infrastructure. This allocation represents the carry forward of funds previously allocated for Water Infrastructure in 2003-04. 3. In 2002-03, $4.5 million was allocated from the SIF for Water Infrastructure development. It is anticipated that $1.42 million of these funds will be carried forward to 2004-05. 4. Funding of $7.0 million was initially allocated from the IF in 2002-03 for the construction of the Meander Dam. These funds will remain unspent in 2003-04 and will be carried forward to 2004-05.
Chapter 15: Primary Industries, Water and Environment 419 DETAILED OUTPUT GROUP 2004-05 BUDGET INFORMATION
The individual Outputs of the Department of Primary Industries, Water and Environment are provided under the following Output Groups:
Output Group 1: Information and Land Services;
Output Group 2: Food, Agriculture and Fisheries;
Output Group 3: Resource Management and Conservation;
Output Group 4: Environment Protection and Analytical Services;
Output Group 5: Water Resources; and
Output Group 6 Policy and Planning.
Output Group 1: Information and Land Services Description
The purpose of this Output Group is to provide Government land services that maintain the security of land tenure. In providing these services the Output Group collects and maintains core land data sets. Security of land tenure and provision of world class services supporting access to and use of the core data sets enables future investment in Tasmania and contributes to Tasmania's growth, prosperity and conservation.
The objectives of the Output Group are to:
• lead in the application of land and associated technology expertise to deliver information solutions to achieve Government and community priorities;
• enable all Tasmanians to access Government information related to ownership and interests in land at any time from any location through the LIST web interface;
• create, systematically improve, maintain and deliver fundamental data sets to meet the management needs of the State;
• administer and proactively manage and develop Crown land;
• deliver whole-of-government services and products through the management of Service Tasmania Shops;
• administer and deliver a uniform and consistent municipal rating system throughout Tasmania;
• provide an independent valuation service that recognises and protects the interests of the public and the Government when dealing with Crown land and Government related projects;
• provide an effective land title system which provides certainty of title and maintain an effective policy and legislative framework for land administration which underpins sustainable development in Tasmania; and
• provide reliable systems and infrastructure to align with business operations within the Department.
420 Chapter 15: Primary Industries, Water and Environment The achievement of these objectives ensures the security of land tenure is maintained and contributes to the social and economic well being of the community. In particular, the achievement of these objectives ensures the Output Group contributes to all of the Department's Outcomes and plays a significant role in Outcome 5, A foundation for investment in Tasmania.
Through the management of Service Tasmania shops, this Output Group supports rural and regional communities by providing quality services and products across Tasmania through shop fronts and electronic commerce.
Users of this Output Group include the Commonwealth, State and Local Governments, the community, businesses and industry. Significant users in the private sector include the banking, legal, survey and real estate professions.
Information and Land Services is actively supporting Tasmania Together Goals by providing up to date and accurate land information to the Department and other government agencies.
This land information helps government agencies make informed decisions regarding their activities, and to monitor and measure performance against some Tasmania Together benchmarks. It has particular relevance to benchmarks with a locational component.
Chapter 15: Primary Industries, Water and Environment 421 Table 15.3: Summary Financial Information – Output Group 1 2003-04) 2004-05) Information and Land Services Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 17 948) 17 634) (1.7) Grants 740) 740) ....) Sales of Goods and Services 4 866) 4 739) (2.6) Proceeds from the Disposal of Assets 2 000) 2 000) ....) Other Revenue1 15 808) 17 636) 11.6) TOTAL 41 362) 42 749) 3.4)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 16 715) 17 006) 1.7) Other Employee Related Expenses 1 688) 1 773) 5.0) Superannuation 1 700) 1 685) (0.9) Depreciation and Amortisation2 1 047) 1 293) 23.5) Grants and Transfer Payments3 11 603) 6 103) (47.4) Supplies and Consumables Maintenance and Property Services 3 531) 3 644) 3.2) Information Technology4 2 140) 1 892) (11.6) Travel and Transport 826) 793) (4.0) Advertising and Promotion 45) 46) 2.2) Other Supplies and Consumables5 6 302) 7 545) 19.7) Other Expenses 50) 50) ....) TOTAL 45 647) 41 830) (8.4)
EXPENSE BY OUTPUT 1.1 Land Services and Systems 9 040) 8 650) (4.3) 1.2 Information Systems and Services5 8 808) 10 578) 20.1) 1.3 Government Valuation Services 1 208) 1 243) 2.9) 1.4 Service Tasmania Shop Fronts 9 910) 9 876) (0.3) 1.5 Crown Land Services3 16 681) 11 483) (31.2) TOTAL 45 647) 41 830) (8.4)
Notes: 1. The increase in Other Revenue relates to increased sales of tourism related mapping products, aerial photography, photogrammetry and additional revenue collected on behalf of Councils for certificate transactions. 2. The increase in Depreciation and Amortisation relates to an expected revaluation of buildings and other assets. 3. The decrease in Grants and Transfer Payments relates to a revision in the contribution from the Crown Land Administration Fund to the Consolidated Fund. 4. The decrease in Information Technology reflects the completion of major re-developments of the Crown Land Real Estate System Tasmania and the Valuation Information System Tasmania. 5. The increase in Other Supplies and Consumables relates to the payment of receipts to Councils for revenue collected on their behalf for Council certificates.
422 Chapter 15: Primary Industries, Water and Environment Major Issues and Initiatives for 2004-05
As well as undertaking initiatives mentioned above, the major initiatives and issues for 2004-05 are:
• increasing the functionality of the LIST by making the web interface more user friendly and by utilising the LIST infrastructure to provide access to more land related data sets;
• completing phase two of the Shack Sites Project by facilitating the installation of required infrastructure and completing shack site sales;
• continuing the acquisition of land for the gas pipeline as part of the Duke Energy International (DEI) Tasmania Holdings Pty Ltd Gas Project;
• managing the major infrastructure development projects at Cradle Mountain, Strahan and Coles Bay;
• undertaking an audit of Crown land to enable decisions about its future use and management. (Tasmania Together Benchmark 23.1.1 – Percentage of land protected either by legislation or by contract in conservation reserves, under covenant or heritage regimes); and
• continuing the legislative program including commencing a post-implementation review of the Power of Attorneys Act 2000, continuing reviews of the Land Titles Act 1980 and the Strata Titles Act 1998 and finalising the review of the Survey Coordination Act 1944.
Table 15.4: Performance Information - Output Group 1 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure Measure Actual Actual Target Target Audited surveys complying with statutory requirements % 5640 50 55 Completeness of data held on the LIST 1 % n.a. 87 95 96 Valuation notices issued resulting in an objection % 0.550.2 1 1 Formal complaints received in Service Tasmania % 0.0020.002 0.003 0.003 DPIWE land related datasets delivered through the LIST % 80 90 100 100 Plans registered in the Land Titles Office within 10 days % 58 54 80 80 Average time to approve Crown land transaction days 10297 95 95
Note: 1. The wording of the performance measure has been revised from that reported in 2003-04 Budget Paper No 2, replacing the word ′accuracy′ with ′completeness′. The revised measure provides a more relevant and useful performance measure. A complete dataset on the LIST has been fully attributed, is linked to other relevant data sets and covers the whole State.
Chapter 15: Primary Industries, Water and Environment 423
Performance Information Comments
The performance assessment for this Output Group focuses on the timely delivery of services and the provision of complete information.
The statutory role of the Office of the Surveyor-General is to regulate land surveying practices in Tasmania. This performance measure provides an overall assessment of the effectiveness of that regulation, including the competency accreditation processes and prescribed land surveying practices in Tasmania. Each year, the Office of the Surveyor-General undertakes an office inspection and field audit of one survey for each practising Registered Land Surveyor. Each audit measures a survey's compliance with statutory requirements. In 2002-03, 58 audits were conducted with 23 compliant or near compliant surveys. To encourage greater compliance with statutory requirements, the Department is:
• working with industry to develop new directions for surveying practice as part of the implementation of the Surveyors Act 2002; and
• changing the audit practices in the Office of the Surveyor-General to provide incentives to industry to increase their level of compliance.
In the longer term, these initiatives can expect to deliver 80 per cent compliance, which is comparable with performance in other jurisdictions.
As a result of the recent property boom, record levels of dealings have been lodged with the Land Titles Office. This has impacted on the rate at which dealings have been lodged, with just over half of the plans registered within 10 days of lodgement. As the market levels out, it is anticipated that this rate will return to 80 per cent.
To ensure quality customer service, the automated Torrens Titles Register (TASFOL) has been redeveloped to allow for improved customer service. Future improvements to service delivery are being undertaken to include:
• ensuring land related datasets are available through the LIST with 95 per cent completeness by June 2004; and
• improving approval times for Crown land transactions through the implementation of the new Crown Real Estate System Tasmania.
424 Chapter 15: Primary Industries, Water and Environment Output Group 2: Food, Agriculture and Fisheries Description
The Food, Agriculture and Fisheries Output Group contributes to the sustainable economic development of Tasmania's agriculture, aquaculture and fishing industries by delivering services to encourage the adoption of best practice production and facilitating access to local, national and international markets.
This is achieved by:
• providing and supporting a framework in partnership with industry and other government departments whereby Tasmania's agricultural and fish products are produced in a sustainable manner and where resources are utilised to provide optimum value;
• maintaining Tasmania's relative disease, pest and weed freedom and preferential market access status by protecting Tasmania's fishing, farming and natural environment from the impact of incursions of exotic organisms;
• working with rural communities to enhance their ability to manage change and seize opportunities by developing networks, leadership and skills;
• delivering programs that maximise growth, development and investment opportunities in all sectors of food, agriculture and fisheries by utilising our natural resources in a sustainable manner to generate economic wealth and jobs for Tasmanians; and
• using risk management based regulatory frameworks and advisory means to ensure quality management systems are in place to promote market confidence in the quality and safety of Tasmania's food products.
Australian Quarantine and Inspection Service (AQIS) activities are also undertaken on behalf of the Commonwealth Government.
This Output Group supports the Department's Outcome of sustainable and profitable agriculture, aquaculture and fisheries and the Outcome of self-reliant rural and regional communities.
The Output Group contributes to a number of Tasmania Together goals, primarily Goal 20 - Promote our island advantages including our 'clean-green' image, natural resources, location and people; and Goal 23 - Ensure there is a balance between environmental protection and economic and social development.
The main users of this Output Group are primary producers and primary industries, fishers and aquaculture industries and regional communities.
Chapter 15: Primary Industries, Water and Environment 425 Table 15.5: Summary Financial Information – Output Group 2 2003-04) 2004-05) Food, Agriculture and Fisheries Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 23 222) 23 221) ....) Fines and Regulatory Fees 8) 8) ....) Grants1 2 233) 1 949) (12.7) Sales of Goods and Services 3 399) 3 472) 2.1) Other Revenue2 558) 1 117) 100.2) TOTAL 29 420) 29 767) 1.2)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 15 477) 15 858) 2.5) Other Employee Related Expenses 1 678) 1 744) 3.9) Superannuation 1 603) 1 665) 3.9) Depreciation and Amortisation 1 234) 1 251) 1.4) Grants and Transfer Payments1 2 566) 1 910) (25.6) Supplies and Consumables Maintenance and Property Services 1 930) 1 852) (4.0) Information Technology 532) 511) (3.9) Travel and Transport 1 512) 1 518) 0.4) Advertising and Promotion 212) 231) 9.0) Other Supplies and Consumables3 5 279) 4 984) (5.6) Other Expenses3 202) 12) (94.1) TOTAL 32 225) 31 536) (2.1)
EXPENSE BY OUTPUT 2.1 Agriculture Industry Development Services 13 959) 13 374) (4.2) 2.2 Quarantine Barrier Services 5 127) 4 971) (3.0) 2.3 Marine Farming and Wild Fisheries Management 8 379) 8 275) (1.2) 2.4 Diagnostic Services 4 760) 4 916) 3.3) TOTAL 32 225) 31 536) (2.1)
Notes: 1. The decrease relates to the finalisation of several projects in 2003-04, such as Natural Resource Management projects and the FarmBi$ II program which concluded on 30 June 2004. The Commonwealth Government is yet to announce funding arrangements for a FarmBi$ III program. 2. The increase in Other Revenue relates to an increase in licence fees for Recreational Fishing. 3. The decrease in Other Supplies and Consumables, and Other Expenses represents the partial completion of the Maintaining Tasmania's Pest and Disease Free Status Initiative projects for 2003-04; and the completion of several other projects during 2004-05.
426 Chapter 15: Primary Industries, Water and Environment Major Issues and Initiatives for 2004-05
The major initiatives and issues for 2004-05 are:
• continuing to implement the State of Growth Strategy, in particular forming partnerships with industry bodies and working with the Department of Economic Development to open up new market opportunities for Tasmanian produce (Tasmania Together Benchmark 20.2.4 – Primary industry exports);
• continuing to upgrade Tasmania's response to an outbreak of a land-based exotic disease (Tasmania Together Benchmark 23.4.2 – Number of new pests established);
• developing an integrated food safety risk management system for all primary food production and the associated supply chain supported by legislation and inter-agency cooperation;
• progressing development and adaptation of an environment certification label for Tasmania's primary industries (Tasmania Together Benchmark 23.2.1 – Percentage of businesses, agencies and Government Business Enterprises independently certified against state, national or international environmental, occupational health and safety and quality assurance standards);
• implementing operational strategies to improve the efficiency of barrier clearance activities, compliance with the requirements of the arrangements with AQIS and manage the increased level of vessel and flight arrivals, including the three Spirits of Tasmania (Tasmania Together Benchmark 20.1.1 – Kilos of private confiscations);
• developing a framework for the application of ecosystem based management for Tasmania's fisheries and marine environment;
• progressing market access submissions for cherries, flower bulbs, potatoes and apples (Tasmania Together Benchmark 20.2.4 – Primary industry exports);
• developing a framework for a revised Aquaculture Fish Health Management Program;
• implementing the National Livestock Identification Scheme for cattle in Tasmania;
• reviewing the Marine Farm Plan for the Tasman Peninsula and Norfolk Bay;
• facilitating the adoption of up to date Natural Resource Management (NRM) practices by primary producers and rural communities in line with the directions flowing from the regional NRM Strategies and the sustainability requirements identified through industry action partnerships (Tasmania Together Goal 24 – Ensure our natural resources are managed in a sustainable way now and for future generations);
• progressing accreditation of Tasmanian marine farm planning processes under Commonwealth environmental legislation;
• implementing on-farm programs to promote improved irrigation practice and improved economic returns from on-farm water use; and
• commercialising fish vaccine production in partnership with the salmon industry.
Chapter 15: Primary Industries, Water and Environment 427 Table 15.6: Performance Information – Output Group 2 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure Measure Actual Actual Target Target Primary industry exports (TT) To be established by the Tasmania Together Progress $ million 425.8 390.0 Board Value of the aquaculture and fishing industries: Aquaculture GVP 127.8 133.7 140.0 145.0 Scalefish and shark $ million 4.3 3.3 4.0 4.0 Other (including sea urchin and eels) 3.6 3.8 4.0 4.0 Molluscs 121.9 101.2 120.0 120.0 Crustaceans 69.9 51.1 65.0 65.0 Quarantine Detection Levels: Quarantine detection levels 1 Tonnes 217.5 498.8 239.0 262.0 No of aircraft passengers 2 Number ('000) 579.7 939.0 1 200.0 1 320.0 No of sea passengers3 Number ('000) 64.2 244.3 278.8 337.0 No of certified organic producers (TT) Number 80 90 120 130 Fishers licensing transaction times % completed in 3 days >90 95 (approx) 95 (approx) 95 (approx) Diagnostic services turnaround time: General seed testing – purity analysis Days 3 3 3 3 Veterinary pathology – parasitology Days 1.3 2 2 to 5 2 to 5 Veterinary pathology – biochemistry/ haematology Days 1.8 1.5 1 1.5 Diagnosis by Enzyme Linked Immuno Sorbent Assay Days 8 8 8 8
Notes: 1. The 2002-03 actual figure was abnormally high and lead to the incorrect setting of the 2003-04 target figure. The 2003-04 target figure has been revised. 2. The numbers of passengers identified in 2001-02 do not include passengers flying into Launceston on Virgin flights for the period April to June 2002 when there were no facilities in that area. The increase in 2003-04 and thereafter reflects the anticipated increase in visitors resulting from extra QANTAS/Jetstar, REX and Virgin flights. 3. The 2001-02 number of sea passengers does not include all statistics for the full year due to a change in the reporting process.
Performance Information Comments
The performance assessment for this Output Group focuses on the provision of services aimed at increasing the contribution of primary industries to the State, improving the effectiveness of quarantine services and the efficiency of diagnostic services.
The value of primary industry exports declined during 2002-03. The majority of the decline was in the dairy industry primarily due to a worldwide decline in dairy prices. This decline follows a record year in 2001-02 in dairy exports. Exports for a range of other products including fruit and vegetables, meats and seafood
428 Chapter 15: Primary Industries, Water and Environment were reasonably stable compared with previous years. However, the higher Australian dollar and increasing level of competition in the market place from emerging exporters such as China and South Africa, presents a number of challenges for exporters.
While the total volume of aquaculture and fisheries industries continues to grow, the impact of the strengthening Australian dollar, the weakening $US and the Severe Accurate Respiratory Syndrome (SARS) virus caused the total value of the aquaculture and fishing industries to fall. Scalefish, shark and other fisheries declined primarily due to a drop in catch in Australian salmon and sea urchins.
In the mollusc fishery, the abalone beach price fell by 30 per cent during the second half of the year. Similarly, the crustacean fishery (Rock Lobster and Giant Crab) was also hit with a fall in beach price during the second half of the year. The fall in beach prices was due in part to the impact of SARS, the strengthening Australian dollar and market fluctuations in Asia.
Quarantine detection level compares the confiscation levels for each year. The significant increase in detection rates for 2002-03 was predominantly due to two large one-off commercial consignments being held because they did not have the relevant certificates. Consignments of these sizes are rare, and the detection rate for 2003-04 onwards is anticipated to be substantially lower. However, the overall trend in detection levels is rising as the number of visitors and imports to the State increase.
The number of organic producers continues to rise, with the Department continuing to promote organic production in Tasmania. During 2002-03, the Ministerial Organics Advisory Group was formed to assist in the future development of the organics industry.
Chapter 15: Primary Industries, Water and Environment 429 Output Group 3: Resource Management and Conservation Description
The Resource Management and Conservation Output Group provides for the management and conservation of Tasmania's natural resources on both private and public land.
Principal activities undertaken include:
• conserving the State's threatened flora and fauna species and threatened non-forest vegetation communities;
• managing native wildlife, including game species;
• developing and supporting a comprehensive, adequate and representative reserve system for vegetation, habitat and geodiversity in both terrestrial and marine environments;
• protecting the State's geoheritage features;
• developing community partnerships covering all areas of natural resource management;
• increasing sustainable productivity through improved soil, land and weed management practices;
• providing advice for the management, protection and rehabilitation of reserved land, wetlands and riparian areas;
• undertaking regulatory activities to ensure compliance with legislative frameworks for weed and wildlife management; and
• carrying out feral pest control programs including the fox eradication program. A further $2.6 million over the next three years has been committed to continuing this program.
This Output Group contributes to the Department's Outcome of a conserved natural heritage, as well as the Outcomes of sustainable and profitable agriculture, aquaculture and fisheries industries and a clean and healthy environment.
In this way, this Output Group supports Tasmania Together Goal 22 - Value, protect and maintain our natural diversity; Goal 23 - Ensure there is a balance between environmental protection and economic and social development; and Goal 24 - Ensure our natural resources are managed in a sustainable way now and for future generations.
Users of this Output Group include natural resource managers such as farmers, interstate and overseas visitors, a large percentage of the Tasmanian community, agricultural industries, scientific and educational organisations and a wide range of special interest groups including conservation and resource user groups, other departments and Local Government.
430 Chapter 15: Primary Industries, Water and Environment Table 15.7: Summary Financial Information – Output Group 3 2003-04) 2004-05) Resource Management and Conservation Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 10 336) 13 052) 26.3) Fines and Regulatory Fees2 ....) 110) ....) Investment Income3 ....) 1 000) ....) Sales of Goods and Services4 2 846) 8 030) 182.2) Other Revenue5 ....) 6 563) ....) TOTAL 13 182) 28 755) 118.1)
OPERATING EXPENSES Employee Entitlements Salaries and Wages6 6 519) 9 931) 52.3) Other Employee Related Expenses6 896) 1 136) 26.8) Superannuation6 674) 881) 30.7) Depreciation and Amortisation 182) 240) 31.9) Grants and Transfer Payments7 10 179) 13 175) 29.4) Supplies and Consumables Maintenance and Property Services 916) 811) (11.5) Information Technology 187) 193) 3.2) Travel and Transport6 622) 953) 53.2) Advertising and Promotion 55) 48) (12.7) Other Supplies and Consumables8 1 393) 4 428) 217.9) Other Expenses9 ....) 500) ....) TOTAL 21 623) 32 296) 49.4)
EXPENSE BY OUTPUT 3.1 Land Management Services10 2 122) 2 501) 17.9) 3.2 Conservation of Tasmania's Flora, Fauna and Geoheritage6 19 501) 29 795) 52.8) TOTAL 21 623) 32 296) 49.4)
Notes: 1. The increase in the Annual Appropriation relates to increased funding for the Implementation of Regional Forest Agreement (RFA) review recommendations, support for the Natural Resource Management (NRM) Committees and National Action Plan for Salinity and Water Quality, new funding for the Non Forest Vegetation Project and increased funds for the management of the Tasmanian Devil Facial Tumour Disease Response Project. 2. The increase in Fines and Regulatory Fees relates to the estimated fees to be received from increased cost of permits to use 1080 poison. 3. The increase in Investment Income relates to Interest on Private Forest Reserve Program funds, which has not been previously recognised. 4. The increase in Sales of Goods and Services relates to increased funding for the Commonwealth Non-Forest Vegetation Project and a number of new Natural Resource Management/National Action Plan Projects, such as Holistic Environmental Flow Methods in the NAP Region, Farm Forestry Environmental Services and Operational Whole Farm Planning.
Chapter 15: Primary Industries, Water and Environment 431 5. The increase in Other Revenue relates to funding for the Private Forests Reserve Program previously held by the Department of Premier and Cabinet (DPAC). 6. The increase relates to increased funding for the implementation of RFA review recommendations, the Tasmanian Devil Facial Tumour Disease Response Project, new funding for the Non Forest Vegetation Project and the recognition of funding for the Private Forests Reserve Program previously held by DPAC. 7. The increase in Grants and Transfer Payments largely relates to increased funding for Natural Resource Management/National Action Plan Projects and the new initiative, support for NRM Committees. 8. The increase in Other Supplies and Consumables relates to increased funding for the implementation of RFA review recommendations, the Devils Facial Tumour Disease Project, reducing the use of 1080 project, new funding for the Non Forest Vegetation Project and the Private Forests Reserve Program covenanting costs of $1.4 million. 9. The increase in Other Expenses relates to the Private Forests Reserve Program Land Purchases costs. 10. The increase in Output 3.1 Land Management Services, relates to increased funding for Land Management Projects including National Land and Water Resources Audit.
Major Issues and Initiatives for 2004-05
The major initiatives and issues for 2004-05 include:
• progressing and reporting on Tasmania Together benchmarks relating to resource management and conservation, and working with the Tasmania Together Progress Board to set targets for category 2 benchmarks;
• implementing the Tasmanian Natural Resource Management Framework and supporting the State's three Regional Natural Resource Management Committees and Regional Natural Resource Management Strategies (Tasmania Together Goal 24 – Ensure our natural resources are managed in a sustainable way now and for future generations, and Benchmark 10.6.2 – Level of Aboriginal satisfaction with processes and outcomes in natural resource management);
• continuing the fox eradication program to rid the State of foxes (Tasmania Together Benchmark 23.4.2 - Number of new pests established);
• leading the response to the Tasmanian devil facial tumour disease;
• implementing the National Environmental Management System in Tasmania (Tasmania Together Benchmark 23.4.1 – Percentage of land independently certified for land management against international, national and State standards);
• continuing to implement the Private Forest Reserve Program for the Regional Forest Agreement to establish and maintain the best possible private land component of the Comprehensive, Adequate and Representative reserve system (Tasmania Together Benchmark 23.1.1 – Percentage of land protected either by legislation or by contract in conservation reserves, under covenant or heritage regimes);
• implementing the Tasmanian Marine Protected Areas Strategy which provides for a systematic process to develop a comprehensive, adequate and representative system of marine protected areas (Tasmania Together Benchmark 22.1.4 – Reservation shortfall in relation to marine protected areas);
• improving management of native wildlife and expanding game management to control native game species and promote alternatives to reduce the use of 1080 (Tasmania Together Benchmark 24.5.1 – Levels of usage of 1080);
• working closely with Local Government and local volunteers to rehabilitate and conserve flora, fauna and other natural heritage values (Tasmania Together Goal 24 – Ensure our natural resources are managed in a sustainable way now and for future generations);
432 Chapter 15: Primary Industries, Water and Environment • completing coverage of the Tasmanian vegetation mapping program (Tasmania Together Benchmarks 22.1.2 – Reservation shortfall in hectares in relation to Regional Forest Agreement targeted communities, and 22.1.3 – Reservation shortfall in hectares in non-forest communities);
• implementing strategies for weed of national significance, and managing weed incursions (Tasmania Together Benchmarks 23.4.2 – Number of new pests established, and 24.9.1 – Number of naturalised organisms);
• reviewing research programs on Macquarie Island in accordance with the Macquarie Island Management Plan (Tasmania Together Benchmark 23.1.2 – Percentage of protected land covered by approved management plans);
• developing a number of projects to address water quality and salinity issues under the National Action Plan for Salinity and Water Quality (NAPSWQ) (Tasmania Together Benchmarks 23.4.3 - Area of land affected by salinity, and 24.7.2 – Number of sampling sites which maintain or improve their AusRivAS bands and number of sampling sites which deteriorate);
• administering and managing the finalisation of Natural Heritage Trust 1 (NHT1), and supporting the delivery of Natural Heritage Trust 2 (NHT2) and the NAPSWQ in Tasmania (Tasmania Together Goal 22 – Value, protect and maintain our natural diversity);
• continuing to implement the Threatened Species Protection Strategy (Tasmania Together Benchmark 22.1.1 – Number of species showing a decline or improvement in status on the schedules of the Threatened Species Protection Act 1997);
• undertaking conservation assessments of development proposals including energy infrastructure projects and developments on reserved land; and
• providing advice and specialist support to the Parks and Wildlife Service to assist in the management of reserved land including the Tasmanian World Heritage Area.
Table 15.8: Performance Information – Output Group 3 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure Measure Actual Actual Target Target Percentage of land protected either by legislation or by contract in conservation reserves, under covenant or heritage regimes (TT) % 39.9 40.8 41.0 45.0 Properties with active game management plans per year Number 310 330 360 420 Registered volunteers through WILDCARE Number 3 000 3 500 3 650 3 750 Percentage of land independently certified against international, national and State standards (TT) % 25 25 25 25 Weed Management Plans Drafted Number 25 52 0 10-15 Completed Number 0 0 73 4
Chapter 15: Primary Industries, Water and Environment 433
Performance Information Comments
The performance assessment for this Output Group focuses on the contribution made to protecting and conserving the natural environment.
The amount of land managed either under conservation reserve or covenant or through independent certification already exceeds the targets set through Tasmania Together. The trend is expected to continue up as land is conserved under the Private Forest Reserve Program. However, it is not likely to reach the Tasmania Together target of 45 per cent by 2005.
Sustainable game management is vital for the management and conservation of Tasmania's native animals. The Department is working with landholders to facilitate the development of Game Management Plans on private properties in Tasmania. The number of property based Game Management Plans is now approaching 400.
Vital to conserving Tasmania's natural environment is the involvement of local communities and volunteer organisations. Tasmania's participation in conservation activities continues to increase. In 2002-03, the community contributed in excess of 744 548 hours of volunteer assistance, equating to approximately $9.86 million in monetary terms. The Department continues to support and encourage community participation as a vital part of conserving the State's natural resources.
The Department has finalised Weed Management Plans for 73 declared weeds, with a further four expected to be finalised in the coming months. The Weed Management Plans are developed in consultation with Local Government to promote and reflect community input into weed enforcement. The Department is working to assess the validity of declaration for additional nominated weeds and develop Weed Management Plans for declared weeds.
434 Chapter 15: Primary Industries, Water and Environment Output Group 4: Environment Protection and Analytical Services Description
The Environment Protection and Analytical Services Output Group aims to ensure best practice in environmental management and pollution control is implemented so Tasmanians have a clean and healthy environment for the community to enjoy and that contributes to Tasmania's attractiveness as a place both to live and to visit.
These aims are achieved by:
• developing high quality and contemporary policies and strategies for the protection of the environment;
• ensuring development proposals meet appropriate environmental guidelines and standards;
• regulating environmental impacts of major industrial and municipal activities;
• monitoring environmental performance; and
• providing a range of scientific and analytical services.
This Output Group supports the Outcome of a healthy and clean environment; and supports the Outcome of sustainable and profitable agriculture and fisheries industries; the Outcome of a conserved natural heritage; and the Outcome of a foundation for investment in Tasmania.
The Output Group has a pivotal role in addressing Tasmania Together Goal 23: Ensure there is a balance between environmental protection and economic and social development; and Goal 24: Ensure our natural resources are managed in a sustainable way now and for future generations.
Users of this Output Group include Commonwealth, State and Local Governments, secondary industries, private businesses and the general community.
Chapter 15: Primary Industries, Water and Environment 435 Table 15.9: Summary Financial Information – Output Group 4 2003-04) 2004-05) Environment Protection and Analytical Services Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 7 198) 7 363) 2.3) Investment Income1 400) 660) 65.0) Sales of Goods and Services2 2 177) 1 624) (25.4) Other Revenue3 18) 210) ....) TOTAL 9 793) 9 857) 0.7)
OPERATING EXPENSES Employee Entitlements Salaries and Wages2 6 049) 5 718) (5.5) Other Employee Related Expenses 572) 571) (0.2) Superannuation2 653) 557) (14.7) Depreciation and Amortisation 438) 437) (0.2) Grants and Transfer Payments 223) 146) (34.5) Supplies and Consumables Maintenance and Property Services 681) 593) (12.9) Information Technology 114) 118) 3.5) Travel and Transport 319) 280) (12.2) Advertising and Promotion 34) 20) (41.2) Other Supplies and Consumables 2 686) 2 723) 1.4) TOTAL 11 769) 11 163) (5.1)
EXPENSE BY OUTPUT 4.1 Environmental Management and Pollution Control 9 161) 9 101) (0.7) 4.2 Analytical Services2 2 608) 2 062) (20.9) TOTAL 11 769) 11 163) (5.1)
Notes: 1. The increase in Investment Income relates to interest received from monies held under guarantee for Echo Tasmania Pty Ltd for rehabilitation of the former Tioxide site and additional interest received from monies held in trust for Goldamere Pty Ltd for rehabilitation of the Savage River Mine. 2. The decrease relates to a change in the method of treating the divisional contribution to Analytical Services to avoid double counting. 3. The increase in Other Revenue relates to the recognition of accrued revenue for monies held in trust for Goldamere Pty Ltd as at 30 June 2004.
Major Issues and Initiatives for 2004-05
The major strategic focus for this Output Group for 2004-05 is to further the priority of maintaining the quality of the Tasmanian environment. This will involve completing a number of strategic reforms of the policy framework underpinning the management of Tasmania's environmental quality, whilst playing an active role in ensuring sustainable environmental management as the State environmental regulator.
436 Chapter 15: Primary Industries, Water and Environment Together these strategies and actions will promote sustainable industry practices and contribute to a cleaner environment.
The main focus for the reform of the policy framework will be:
• developing an Environment Protection Policy on noise;
• improving the management of contaminated sites by implementing a formal contaminated sites management system;
• developing a new Litter Act; and
• completing a review of key elements of the Environmental Management and Pollution Control Act 1994.
These initiatives will support Tasmania Together Goal 23 – Ensure there is a balance between environmental protection and economic and social development, and Goal 24 – Ensure our natural resources are managed in a sustainable way now and for future generations.
In addition to undertaking the activities described above, other major initiatives and issues for 2004-05 include:
• progressing the development and achievement of Tasmania Together benchmarks relating to environmental management;
• implementing the Environment Protection Policy on Air Quality, including the development of an Air Quality Management Plan and improving air quality monitoring to meet the increased requirements of National Environment Protection Measures. Funding of $370 000 has been allocated in the 2004-05 budget to significantly upgrade and expand Tasmania's air quality monitoring system. (Tasmania Together Benchmark 24.3.1 – Breaches of National Environment Protection Measures for air standards);
• completing and implementing a major review of Level 2 activities and fees (Tasmania Together Goal 23 - Ensure there is a balance between environmental protection and economic and social development);
• carrying out the environmental assessment of several major windfarm developments (Tasmania Together Goal 23 – Ensure there is a balance between environmental protection and economic and social development);
• putting in place a new electronic management system for the environmental regulatory and monitoring system (NELMS) (Tasmania Together Goal 23 – Ensure there is a balance between environmental protection and economic and social development);
• regulating the construction phases of the Basslink, Southwood and several major windfarm developments (Tasmania Together Goal 23 – Ensure there is a balance between environmental protection and economic and social development);
• improving controlled (hazardous) waste management generally, and medical waste in particular through the development of an approved management method (Tasmania Together Benchmark 24.8.1 - Waste disposal to landfill and incineration);
• reducing pollution from acid drainage from the Mt Lyell and Savage River mine sites;
• facilitating the development and implementation of coastal zone management projects through the Regional NRM Framework; and
Chapter 15: Primary Industries, Water and Environment 437 • collocating the operations of the Analytical Services laboratory at one location.
Table 15.10: Performance Information – Output Group 4 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure Measure Actual Actual Target Target
Air quality (TT): Exceed PM10 Hobart Standards1 3 2 2 2 Launceston 28 13 17 14 Analytical Services Number – analyses performed ('000) 111 125.7 120 120 - turnaround time Days 6.4 6.9 9.0 9.0 Review of Environmental Management Plans (existing and new) Number 74 98 50 50 Permits reviewed (existing and new) Number 66 37 65 60 Median time to complete assessments of Level 2 activities Days 103 79 90 90
Note: 1. PM10 denotes air particles less than 10 micrometres in diameter. The measure counts the number of days that exceed the NEPM (National Environment Protection Measure) standard of 50 micrograms per cubic metre of air. Performance Information Comments
Tasmania's air quality continues to improve, with results well below the target set under Tasmania Together (less than 25 by 2005). Smoke reduction programs, run in partnership with the Launceston City Council, in the Launceston area are proving to be effective in reducing air pollutants. Due to favourable weather conditions, the 2002-03 results were particularly good. The number of exceedences is expected to increase for 2003-04, but the overall downward trend is continuing.
Despite an increase in the number of analyses performed, Analytical Services Tasmania has continued to provide its customers with a timely and efficient average turnaround time of 6.9 days. This is well below the target of nine days. This has been the result of the ongoing quality improvement program and the collocation of the laboratories in the coming year will deliver greater efficiencies in the provision of these services.
438 Chapter 15: Primary Industries, Water and Environment Output Group 5: Water Resources Description
The purpose of this Output Group is to advance Tasmania's prosperity through managing the sustainable use and development of the State's water resources while ensuring that the resources will be able to meet the foreseeable needs of future generations.
This Output Group is responsible for a diverse range of water related functions including:
• implementing the Water Management Act 1999, the State Surface Water Quality Monitoring Strategy and the Water Development Plan for Tasmania;
• designing policy and regulatory frameworks to ensure the equitable, efficient and sustainable allocation and use of surface and ground water resources;
• facilitating water infrastructure development projects; and
• monitoring and assessing the condition of Tasmania's fresh water resources.
This Output Group directly contributes to the Outcome of sustainable and profitable agriculture and fisheries industries and the Outcome of a healthy and clean environment.
This Output Group contributes to the achievement of Tasmania Together Goal 20 - Promote our island advantages including our 'clean-green' image, natural resources, location and people; Goal 23 – Ensure there is a balance between environmental protection and economic and social development; and Goal 24 - Ensure our natural resources are managed in a sustainable way now and for future generations.
The main users of this Output Group include the Tasmanian community, primary industries, the tourist industry and water dependent industries and Hydro Tasmania.
Chapter 15: Primary Industries, Water and Environment 439 Table 15.11: Summary Financial Information – Output Group 5 2003-04) 2004-05) Water Resources Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 4 879) 5 246) 7.5) Grants2 1 351) 330) (75.6) Other Revenue3 800) 100) (87.5) TOTAL 7 030) 5 676) (19.3)
OPERATING EXPENSES Employee Entitlements Salaries and Wages1 2 559) 2 781) 8.7) Other Employee Related Expenses 325) 300) (7.7) Superannuation 317) 294) (7.3) Depreciation and Amortisation4 286) 403) 40.9) Grants and Transfer Payments5 1 963) 1 259) (35.9) Supplies and Consumables Maintenance and Property Services 224) 208) (7.1) Information Technology 85) 134) 57.6) Travel and Transport 325) 382) 17.5) Advertising and Promotion 29) 74) 155.2) Other Supplies and Consumables 1 162) 1 154) (0.7) TOTAL 7 275) 6 989) (3.9)
EXPENSE BY OUTPUT 5.1 Water Resource Management6 4 893) 4 318) (11.8) 5.2 Water Resource Assessment7 2 382) 2 671) 12.1) TOTAL 7 275) 6 989) (3.9)
Notes: 1. The increase relates to additional funding to meet obligations under the Water Management Act 1999. 2. The decrease in Grants results from the finalisation of the Natural Heritage Trust funded Clean Quality Water Program. 3. The decrease in Other Revenue relates to the transfer of responsibility for Fluoridation activities to the Department of Health and Human Services (DHHS) resulting in a reduction of revenue from DHHS. 4. The increase in Depreciation and Amortisation relates to an expected revaluation of buildings and other assets. 5. The decrease in Grants and Transfer Payments relates to the finalisation of funding for the Clean Quality Water Program. 6. The decrease in Output 5.1 Water Resource Management largely relates to the finalisation of funding for the Clean Quality Water Program and the transfer of responsibility for Fluoridation activities to DHHS. 7. The increase in Output 5.2 Water Resource Assessment relates to depreciation associated with a reclassification of assets from Water Resource Management to Water Resource Assessment.
440 Chapter 15: Primary Industries, Water and Environment Major Initiatives for 2004-05
The major focus for the Output Group for 2004-05 is to continue the facilitation of community-driven sustainable water development projects consistent with the Water Development Plan for Tasmania; improve the availability of water information to support water development and management decisions; bring current surface and ground water usage within the provisions of the statutory framework while making water users more accountable for their use of the resource; and identify and strategically protect key freshwater ecosystem values.
For 2004-05, opportunities will be available for the first time to align the Department's water management activities to the objectives and actions of the three accredited Regional Natural Resource Management Strategies.
The other key initiatives and issues for 2004-05 are:
• progressing strategic irrigation and town water supply development projects to the investment ready stage through the Water Development Plan for Tasmania;
• progressing the development and implementation of the Great Forester, Mersey, Little Swanport and Clyde Water Management Plans;
• increasing the security of water dependent businesses and reducing the risk of unsustainable water use by arresting the ongoing creep in water extractions in advance of Water Management Plans through continuation of the Water Use Sustainability Project;
• completing implementation of the new regulatory mechanisms to ensure the safe construction and operation of dams;
• developing and implementing mechanisms to improve the sustainable management of groundwater;
• working with the Food, Agricultural and Fisheries Division to develop a prospectus showing where water availability links with other key factors (suitable microclimate, soils, transport) to encourage investment in sustainable irrigated production and to increase on-farm water use efficiency as actions under the State of Growth Project;
• completing projects supported by the NAPSWQ to enhance the State's streamflow and water quality gauging network and access to information from this network, improve methods for determining environmental water requirements, train regional groups to undertake river health and water quality assessments, and improve knowledge of catchment water yield across the NAP region;
• expanding the Statewide stream gauging network to 53 sites and continuous water quality monitoring to 34 sites and establishing and monitoring 60 permanent sites for the assessment of river health using the Australian River Assessment System (AusRivAS) to support reporting of Tasmania Together Priority Benchmark 24.7.2;
• improving coordination and access to water quality information through implementation of the Tasmanian Surface Water Quality Monitoring Strategy and Partnership Agreements with Local Government;
• implementing the Conservation of Fresh Water Ecosystems Values Project;
Chapter 15: Primary Industries, Water and Environment 441 • forming effective partnerships with the Regional Natural Resource Management Committees to assist in developing and implementing the water assessment, management and planning requirements of the Regional Natural Resource Management Strategies; and
• engaging the Commonwealth Government in meaningful negotiations for funding programs on the basis that the Commonwealth recognises the attributes and acknowledges that Tasmania in many circumstances has distinct attributes that do not provide the opportunity for the State to adopt policies and initiatives which may not be appropriate to our circumstances.
These initiatives all support Tasmania Together Goal 20 - Promote our island advantages including our 'clean-green' image, natural resources, location and people; Goal 23 – Ensure there is a balance between environmental protection and economic and social development, and Goal 24 - Ensure our natural resources are managed in a sustainable way now and for future generations.
442 Chapter 15: Primary Industries, Water and Environment Table 15.12: Performance Information – Output Group 5 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Number of sampling sites which maintain or Twice annual monitoring of improve their AusRivAS bands and number 60 sites commenced in of sampling sites which deteriorate (TT): Baseline 2003-04. Sites maintained/improved Number n.a. data still To be established by the Sites deteriorated Number n.a. being set Tasmania Together Progress Board. Degree to which the Output Group involves stakeholders directly in its activities (Local Government Partnerships and Water Management Plans) Number 8 10 15 18 Increase in user awareness of the value of Baseline water resources (users accessing water data information website)1 Internal Number of 3 175 hits on External website 7 956 206 120 258 000 260 000 Licensed volume of water available for Megalitres irrigation2 (ML) p.a. 268 563 274 693 305 000 325 000 Volume of water traded permanently3 Megalitres (ML) p.a. 652 6 964 1 000 1 500 Volume of water traded temporarily Megalitres (ML) p.a. 651 215 450 500 Average cost of developing Water $('000)/ Management Plans to approval stage Plan n.a. 95 170 170 Cost of water allocation and compliance $/ML of activities licensed use 3.0 3.7 3.5 3.5 Cost of operating stream monitoring stations $/standard station 8 500 3 635 6 447 6 447 Percentage of dam permit applications dealt with in the statutory timeframe % 99 99 100 100 Average time for processing dam permit applications, under delegation by the Assessment Committee for Dam Construction Days 58 42 56 56
Notes: 1. Unit of measure changed from ′percentage increase in number of hits′ to ′number of hits on website′ to allow for easier analysis of trends and calculation of positive or negative changes. 2. Unit of measure changed from ′percentage increase above baseline′ to ′megalitres p.a.′ to allow for easier analysis of trends and calculation of positive or negative changes. 3. Data for 2000-01 is for a partial year only due to implementation of the Water Management Act 1999. Changes in methodology from 2002-03 account for a permanent reduction in the total volume of water traded.
Chapter 15: Primary Industries, Water and Environment 443
Performance Information Comments
The performance assessment for this Output Group focuses on the demand for services provided and the effectiveness and efficiency of water allocation.
Efficient processing of dam applications is important to support the agricultural industry. Dam permit applications have been processed more quickly with an average of 42 days to complete each application, due to the large volume of applications for smaller dams.
The Department continues to improve the availability of water to support water dependent industries, and as a consequence of this confidence there has been an increase in the frequency and volume of water trading for higher value uses. The amount traded will continue to increase as the sustainable limits of water availability are reached in key catchments.
Trading of water was made possible under the Water Management Act 1999. Data on the volume of water traded was first collected during 2001, and over the past two years, the process for gathering data has been refined. The figure for 2002-03 included water permanently transferred with sale of land (properties). From 2003-04 onwards, the data will exclude such transaction. Temporary trading of water is very much dependant upon seasonal conditions driving demand hence the fluctuations from year to year. The Department has no direct influence over temporary trading but facilitates it occurring. It is anticipated that programs such as the Water Use Sustainability Project will increase the demand for the temporary trading of allocations of water.
The average cost of developing water management plans is higher than projected as the development of plans has proved to be more complex. In particular, the period required to negotiate mutually acceptable outcomes with all stakeholders has been longer than initially anticipated.
The cost of water allocation and compliance activities is expected to stabilise and possibly decrease in the longer term as compliance costs are lowered by the greater use of water metering and as water management activities become more efficient. In the short term, the indicator may rise as access to water becomes more valuable and environmental flows are implemented, requiring greater compliance monitoring.
The stream monitoring stations had a large injection of capital funding in 2001-02 to assist in reporting on Tasmania Together Benchmark 24.7.2, and to significantly improve the Department's ability to manage the State's water resources in real-time. This accounted for the significantly higher 2001-02 standard station cost. During 2002-03, there was a decline in activity primarily due to an unusually high rate of staff turnover, which impacted on maintenance regimes and consequently the amount of funds able to be spent on managing the State's stream gauging network. There is now a full complement of staff and a full maintenance program is in place. This is reflected in the targets for 2003-04 and subsequent years.
444 Chapter 15: Primary Industries, Water and Environment Output Group 6: Policy and Planning Description
The role of this Output Group is to provide leadership in strategic policy and land use planning advice for the Primary Industries and Water, and Environment and Planning activities, as well as coordinating whole-of-Department responses to major issues. It also provides a selection of internal services supporting the activities and objectives of other Divisions.
The key activities undertaken as part of this Output Group include:
• leading projects of strategic importance to the Department;
• providing policy review, development and advice services;
• leading and participating in national policy reviews;
• providing professional and effective planning advice;
• providing leadership for major planning initiatives and projects statewide; and
• maintaining the core legislation within the Resource Management and Planning System (RMPS).
Support is also provided to State and Local Government on matters relating to the RMPS.
The Resource Planning and Development Commission is an independent statutory body established by the Resource Planning and Development Commission Act 1997. The Commission has responsibility for planning schemes and amendments under the Land Use Planning and Approvals Act 1993; the assessment of projects of State significance and State policies under the State Polices and Projects Act 1993 according to directions issued by the Premier; preparation of the State of Environment Report; and inquiries in accordance with terms of reference issued under the Public Land (Administration and Forests) Act 1991.
The Resource Management and Planning Appeal Tribunal is an independent statutory body which hears appeals relating to planning, heritage, marine and environmental decisions and determines applications for orders under relevant legislation. The planning system includes the assessment of development applications and the inspection and auditing of activities likely to cause significant environmental harm.
Also included in this Output Group are a range of coordination activities including Ministerial Councils, the Department's Freedom of Information program, management of internal audit including servicing the Internal Audit Committee, and management of the Department's legislative program.
Chapter 15: Primary Industries, Water and Environment 445 Table 15.13: Summary Financial Information – Output Group 6 2003-04) 2004-05) Policy and Planning Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 4 053) 4 263) 5.2) TOTAL 4 053) 4 263) 5.2)
OPERATING EXPENSES Employee Entitlements Salaries and Wages1 2 560) 2 899) 13.2) Other Employee Related Expenses 269) 309) 14.9) Superannuation 259) 295) 13.9) Depreciation and Amortisation 15) 27) 80.0) Supplies and Consumables Maintenance and Property Services 407) 395) (2.9) Information Technology 48) 50) 4.2) Travel and Transport 167) 108) (35.3) Advertising and Promotion 44) 31) (29.5) Other Supplies and Consumables 299) 217) (27.4) TOTAL 4 068) 4 331) 6.5)
EXPENSE BY OUTPUT 6.1 Policy Advice 1 326) 1 325) (0.1) 6.2 Land Use Planning1 ....) 317) ....) 6.3 Resource Planning and Development Commission 1 992) 1 945) (2.4) 6.4 Resource Management Planning Appeals Tribunal 750) 744) (0.8) TOTAL 4 068) 4 331) 6.5)
Note: 1. The increase reflects the establishment of the Land Use Planning Unit and funding for the Climate Change Project.
Major Initiatives for 2004-05
The major initiatives that will be addressed by this Output Group are:
• developing and implementing Vegetation Management Agreements in partnership with landholders to ensure the sustainable management of vegetation on private land (Tasmania Together Benchmark 23.4.1 - Percentage of land independently certified for land management against international, national and State standards; and Benchmark 22.1.3 – Reservation shortfall in hectares in non-forest communities);
• project managing the Hobart Waterfront Project (Tasmania Together Benchmark 21.1. – An enhanced planning system);
446 Chapter 15: Primary Industries, Water and Environment • facilitating improvements to the RMPS to enhance the State's environment and to support Tasmania's development (Tasmania Together Benchmark 21.1. – An enhanced planning system);
• facilitating the development of adaptation strategies to address climate change impacts, in particular those associated with changing sea levels, temperature and water availability (Tasmania Together Benchmark 24.6.3 – Levels of greenhouse gas production);
• playing a leading role in the review of the State Coastal Policy 1996;
• assisting in implementing the Natural Resource Management Framework to implement that State's natural resource management legislation and ensure the three tiers of Government and the community work together effectively (Tasmania Together Goal 24 – Ensure our natural resources are managed in a sustainable way now and for future generations);
• coordinating the Department's participation in, and implementation of, Government Partnership agreements;
• coordinating the Department's responsibilities under Basslink, including the provision of executive support to relevant committees; and
• coordinating the Department's input into Government development of Aboriginal policy especially in relation to land, heritage and cultural practices (Tasmania Together Benchmark 10.6.2 – Level of Aboriginal satisfaction with processes and outcomes in natural resource management).
Chapter 15: Primary Industries, Water and Environment 447 Administered Items Grants and Subsidies
Table 15.14 provides a summary of the Grants and Subsidies paid by the Department of Primary Industries, Water and Environment. A brief description of each payment follows the Table.
Table 15.14: Grants and Subsidies Financial Summary 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) REVENUE Revenue from Government Annual Appropriation 8 484) 8 592) 1.2) TOTAL 8 484) 8 592) 1.2)
EXPENSES Construction of Irrigation Schemes: Loan Charges Contribution 2 763) 2 763) ....) Contribution to Commonwealth, State and Industry Organisations 470) 470) ....) Grant to Tasmanian Aquaculture and Fisheries Institute 2 422) 2 422) ....) Grant to Tasmanian Institute of Agricultural Research 1 820) 1 820) ....) Inland Fisheries Service - Government Contribution1 725) 1 117) 54.0) Interest on borrowings for Minor Works (Rivers and Water Supply Commission)2 284) ....) (100.0) TOTAL 8 484) 8 592) 1.2)
Notes: 1. The increase relates to an increase in the Inland Fisheries Service Base Funding arrangement. 2. The decrease relates to the extinguishment a $2.36 million non-repayable loan previously advanced to the Rivers and Water Supply Commission by the Treasurer.
Construction of Irrigation Schemes: Loan Charges Contribution
The provision of this funding contributes to Output Group 2 – Food, Agriculture and Fisheries and represents a capital contribution to the Rivers and Water Supply Commission to meet loan charges on borrowings for the construction of irrigation schemes. Contribution to Commonwealth, State and Industry Organisations
This funding is provided to meet the State contribution to cost sharing arrangements as agreed at meetings of the Natural Resource Management Ministerial Council and the Primary Industries Ministerial Council. As such, it contributes to activities under Output Group 2 – Food, Agriculture and Fisheries and Output Group 3 – Resource Management and Conservation. Grant to the Tasmanian Aquaculture and Fisheries Institute
The former Department of Primary Industry and Fisheries entered into a Joint Venture Agreement with the University of Tasmania, effective from 1 July 1998, to undertake fisheries research under the auspices of the
448 Chapter 15: Primary Industries, Water and Environment Tasmanian Aquaculture and Fisheries Institute (TAFI). The Government provides its contribution to the joint venture by way of an annual grant. Activities of TAFI contribute to Output Group 2 – Food, Agriculture and Fisheries. Grant to the Tasmanian Institute of Agricultural Research
The former Department of Primary Industry and Fisheries entered into a Joint Venture Agreement with the University of Tasmania in May 1997 to undertake agricultural research under the auspices of the Tasmanian Institute of Agricultural Research (TIAR). The Government provides its contribution to the joint venture by way of an annual grant. Activities of TIAR contribute to Output Group 2 – Food, Agriculture and Fisheries. Inland Fisheries Service – Government Contribution
This contribution is linked to Output Group 3 – Resource Management and Conservation. It represents the community service functions of the Inland Fisheries Service (IFS) in relation to the conservation, protection and management of Tasmania's native freshwater fauna and the carp management program.
Following a review of the IFS, the Government increased the IFS base funding to $1.117 million. Interest on Borrowings for Minor Works
This funding contributes to Output Group 2 – Food, Agriculture and Fisheries to meet interest payable on works and services funds advanced by the State for the purposes of stream gauging works, river improvement works and water resources surveys.
Chapter 15: Primary Industries, Water and Environment 449 Table 15.15: Revenue Collected on Behalf of the Consolidated Fund 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) REVENUE Fines and Regulatory Fees 14 535) 8 318) (42.8) Other Revenue 11 603) 6 103) (47.5) Sales of Goods and Services 15 292) 19 195) 25.5) TOTAL REVENUE 41 430) 33 616) (18.9)
Transfers to the Consolidated Fund Abalone Licences1 7 397) 2 855) (61.5) Animal Health Laboratory Fees and Recoveries 287) 284) (1.1) Crown Lands Administration Fund2 11 603) 6 103) (47.5) Environment Fees 1 546) 1 585) 2.5) Land Information Charges 729) 767) 5.2) Lands Titles Office Dealings3 10 557) 14 237) 34.8) Marine Farms Fees and Recoveries4 968) 1 165) 20.3) Meat Hygiene Inspections and Licences 96) 79) (17.8) Other Fees and Recoveries 179) 101) (43.6) Other Regulatory Fees 2 506) 2 639) 5.3) Parks and Wildlife Charges 204) 210) 2.9) Planning and Local Government Levy5 2 778) ....) (100.0) Plant Quarantine Fees and Recoveries6 211) 300) 42.1) Quarantine Fees7 ....) 760) ....) Seed Testing Fees and Recoveries 154) 141) (8.5) Water Licence Fees8 212) 400) 88.6) Water Royalty Income 1 911) 1 917) 0.3) Wildlife Animal Management Fees and Recoveries 92) 73) (20.7)
TOTAL TRANSFERS TO THE CONSOLIDATED FUND 41 430) 33 616) (18.9)
Notes: 1. The decrease in Abalone Licences relates to a fall in the market price of Abalone and a reduction to the Total Allowable Catch. 2. The decrease in the Crown Lands Administration Fund relates to a revision in the contribution from the Crown Land Administration Fund to the Consolidated Fund. 3. The increase in Lands Titles Office Dealings relates to the continued high level of lodgements and dealings in the Land Titles Office. 4. The increase in Marine Farms Fees and Recoveries relates to increases in fees due to indexation and additional revenue from new marine farms licensed during 2003-04. 5. The decrease in Planning and Local Government Levy relates to the abolition of the Planning and Local Government Levy following agreement of State and Local Government Financial Reforms. 6. The increase in Plant Quarantine Fees and Recoveries relates to an increase in quarantine activity covering general cargo into Tasmania from interstate. 7. The increase in Quarantine Fees relates to the recovery of quarantine costs in relation to servicing the Spirit of Tasmania vessels. 8. The increase in Water Licence Fees relates to increased fees payable under the Water Management Act 1999.
450 Chapter 15: Primary Industries, Water and Environment Capital Investment Program
Table 15.16: Capital Investment Program1 2004-05) Budget) $'000) New Projects Air Monitoring Equipment 226) Theatre Royal extension 800)
Continuing Projects Building Services Maintenance 154)
TOTAL CAPITAL INVESTMENT PROGRAM 1 180)
Note: 1. For more information regarding the Capital Investment Program, see Chapter 6 in Budget Paper No 1, Budget Overview 2004-05.
Chapter 15: Primary Industries, Water and Environment 451 DETAILED BUDGET STATEMENTS
Table 15.17: Output Group Expense Summary for the Department of Primary Industries, Water and Environment 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) Minister for Primary Industries and Water Output Group 2 - Food, Agriculture and Fisheries 2.1 Agriculture Industry Development Services 13 959) 13 374) (4.2) 2.2 Quarantine Barrier Services 5 127) 4 971) (3.0) 2.3 Marine Farming and Wild Fisheries Management 8 379) 8 275) (1.2) 2.4 Diagnostic Services 4 760) 4 916) 3.3) 32 225) 31 536) (2.1) Output Group 5 - Water Resources 5.1 Water Resource Management1 4 893) 4 318) (11.8) 5.2 Water Resource Assessment2 2 382) 2 671) 12.1) 7 275) 6 989) (3.9)
Grants and Subsidies 8 484) 8 592) 1.3)
Minister for Environment and Planning Output Group 1 - Information and Land Services 1.1 Land Services and Systems 9 040) 8 650) (4.3) 1.2 Information Systems and Services3 8 808) 10 578) 20.1) 1.3 Government Valuation Services 1 208) 1 243) 2.9) 1.4 Service Tasmania Shop Fronts 9 910) 9 876) (0.3) 1.5 Crown Land Services4 16 681) 11 483) (31.2) 45 647) 41 830) (8.4) Output Group 3 - Resource Management and Conservation 3.1 Land Management Services5 2 122) 2 501) 17.9) 3.2 Conservation of Tasmania's Flora, Fauna and Geoheritage6 19 501) 29 795) 52.8) 21 623) 32 296) 49.4) Output Group 4 - Environment Protection and Analytical Services 4.1 Environmental Management and Pollution Control 9 161) 9 101) (0.7) 4.2 Analytical Services7 2 608) 2 062) (20.9) 11 769) 11 163) (5.1)
452 Chapter 15: Primary Industries, Water and Environment Table 15.17: Output Group Expense Summary for the Department of Primary Industries, Water and Environment (continued) 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) Output Group 6 - Policy and Planning 6.1 Policy Advice 1 326) 1 325) (0.1) 6.2 Land Use Planning8 ....) 317) ....) 6.3 Resource Planning and Development Commission 1 992) 1 945) (2.4) 6.4 Resource Management Planning Appeals Tribunal 750) 744) (0.8) 4 068) 4 331) 6.5)
Other9 154) 1 180) 666.2)
TOTAL AGENCY 131 245) 137 917) 5.1)
Notes: 1. The decrease in Output 5.1 Water Resource Management largely relates to the finalisation of funding for the Clean Quality Water Program and the transfer of responsibility for Fluoridation activities to the Department of Health and Human Services. 2. The increase in Output 5.2 Water Resources Assessment relates to depreciation associated with a reclassification of assets from Water Resource Management to Water Resource Assessment. 3. The increase in Output 1.2 Information Systems and Services relates to the payment of receipts to Councils for revenue collected on their behalf for Council certificates. 4. The decrease in Output 1.5 Crown Land Services relates to a revision in the contribution from the Crown Land Administration Fund to the Consolidated Fund. 5. The increase in Output 3.1 Land Management Services relates to increased funding for Land Management Projects including National Land and Water Resources Audit. 6. The increase in Output 3.2 Conservation of Tasmania's Flora, Fauna and Geoheritage relates to increased funding for the Implementation of Regional Forest Agreement review recommendations, the Tasmanian Devil Facial Tumour Disease Response project, new funding for the Non Forest Vegetation Project and the recognition of funding for the Private Forests Reserve Program previously held by the Department of Premier and Cabinet. 7. The decrease in Output 4.2 Analytical Services relates to a change in the method of treating the divisional contribution to Analytical Services to avoid double counting. 8. The increase in Output 6.2 Land Use Planning reflects the establishment of the Land Use Planning Unit and funding for the Climate Change Project. 9. The increase in Other relates to funding from the Capital Investment Program for the Theatre Royal extension and air monitoring equipment.
Chapter 15: Primary Industries, Water and Environment 453 Table 15.18: Statement of Financial Performance for the Department of Primary Industries, Water and Environment 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 67 790) 71 959) 6.1) Fines and Regulatory Fees2 8) 118) ....) Investment Income3 400) 1 660) 315.0) Grants4 4 324) 3 019) (30.2) Sales of Goods and Services5 13 288) 17 865) 34.4) Proceeds from the Disposal of Assets 2 000) 2 000) ....) Other Revenue6 17 184) 25 626) 49.1) TOTAL 104 994) 122 247) 16.4)
OPERATING EXPENSES Employee Entitlements1 55 307) 60 026) 8.5) Superannuation 5 206) 5 377) 3.2) Depreciation and Amortisation7 3 202) 3 651) 14.0) Grants and Transfer Payments8 26 534) 22 593) (14.9) Supplies and Consumables1 32 260) 37 116) 15.0) Other Expenses9 252) 562) 123.0) TOTAL 122 761) 129 325) 5.3)
NET OPERATING RESULT (17 767) (7 078) (60.2)
Notes: 1. The increase relates to funding for new initiatives – Natural Resource Management Regional Committees, Regional Forest Agreement Review response, Quarantine Services – Spirit of Tasmania III and air monitoring equipment. 2. The increase in Fines and Regulatory Fees relates to the estimated fees to be received from increased cost of permits to use 1080 poison. 3. The increase in Investment Income relates to interest on Private Forests Reserve Program funds, which have not previously been recognised. 4. The decrease in Grants relates to a reduction in grants from the finalisation of the Natural Heritage Trust funded Clean Quality Water Program. 5. The increase in the Sales of Goods and Services relates to increased funding for the Commonwealth Non-Forest Vegetation Project and a number of new Natural Resource Management/National Action Plan Projects, such as Holistic Environmental Flow Methods in the NAP Region, Farm Forestry Environmental Services and Operational Whole Farm Planning. 6. The increase in Other Revenue relates to funding for the Private Forests Reserve Program previously held by the Department of Premier and Cabinet. 7. The increase in Depreciation and Amortisation relates to an expected revaluation of buildings and other assets. 8. The decrease in Grants and Transfer Payments relates to a revision in the contribution from the Crown Land Administration Fund to the Consolidated Revenue Fund, a reduction resulting from the finalisation of the Natural Heritage Trust funded Clean Quality Water Program and increases in funding for Natural Resource Management/National Action Plan Projects and the new initiative, support for NRM Committees 9. The increase in Other Expenses relates to increased funding for Land Management Projects including National Land and Water Resources Audit.
454 Chapter 15: Primary Industries, Water and Environment Table 15.18: Statement of Financial Performance for the Department of Primary Industries, Water and Environment (continued) 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) ADMINISTERED ITEMS
REVENUE Revenue from Government Annual Appropriation 8 484) 8 592) 1.2) Fines and Regulatory Fees1 14 535) 8 318) (42.8) Sales of Goods and Services2 15 292) 19 195) 25.5) Other Revenue3 11 603) 6 103) (47.5) TOTAL 49 914) 42 208) (15.5)
EXPENSES Grants and Subsidies Grants and Transfer Payments 8 484) 8 592) 1.2) Total Grants and Subsidies 8 484) 8 592) 1.2) Transfer to the Consolidated Fund 41 430) 33 616) (18.9) TOTAL 49 914) 42 208) (15.5)
Notes: 1. The decrease in Fines and Regulatory Fees relates to a fall in the market price of Abalone and a reduction in the Total Allowable Catch and the abolition of the Planning and Local Government Levy. 2. The increase in Sales of Goods and Services relates to the continued high level of lodgements and dealings in the Land Titles Office. 3. The decrease in Other Revenue relates to a revision in the estimated contribution from the Crown Land Administration Fund to the Consolidated Fund.
Chapter 15: Primary Industries, Water and Environment 455 Table 15.19: Statement of Financial Position as at 30 June for the Department of Primary Industries, Water and Environment 2004) 2005 Budget Budget Variation) $'000) $'000) %) CURRENT ASSETS Cash1 26 508) 39 398) 48.6) Receivables2 16 905) 6 550) (61.3) Investments3 ....) 625) ....) Tax Assets3 ....) 107) ....) Other3 1 814) 1 364) (24.9) TOTAL 45 227) 48 044) 6.2)
NON-CURRENT ASSETS Receivables2 ....) 10 155) ....) Land and Buildings 224 504) 226 089) 0.7) Plant and Equipment4 11 566) 9 000) (22.2) Infrastructure4 4 189) 2 938) (29.9) Other5 3 315) 3 067) (7.5) TOTAL 243 574) 251 249) 3.1)
TOTAL ASSETS 288 801) 299 293) 3.6)
CURRENT LIABILITIES Payables6 1 408) 1 228) (12.8) Interest Bearing Liabilities6 ....) 357) ....) Employee Entitlements7 5 466) 6 285) 14.9) Other8 289) 3 417) ....) TOTAL 7 163) 11 287) 57.5)
NON-CURRENT LIABILITIES Payables6 935) ....) (100.0) Interest Bearing Liabilities6 ....) 930) ....) Employee Entitlements7 7 642) 8 788) 14.9) TOTAL 8 577) 9 718) 13.3)
TOTAL LIABILITIES 15 740) 21 005) 33.4)
NET ASSETS 273 061) 278 288) 1.9)
456 Chapter 15: Primary Industries, Water and Environment Table 15.19: Statement of Financial Position as at 30 June for the Department of Primary Industries, Water and Environment (continued) 2004) 2004-05) Budget) Budget) Variation) $'000) $'000) % ADMINISTERED ITEMS
CURRENT ASSETS Receivables 741) 741) ....) TOTAL 741) 741) ....)
NON-CURRENT ASSETS TOTAL ....) ....) ....)
TOTAL ASSETS 741) 741) ....)
CURRENT LIABILITIES TOTAL ....) ....) ....)
NON-CURRENT LIABILITIES TOTAL ....) ....) ....)
TOTAL LIABILITIES ....) ....) ....)
NET ASSETS 741) 741) ....)
Notes: 1. The increase in Cash relates to a correction in the estimated opening cash balance position that was underestimated when accrual budgeting was introduced. 2. The decrease in Receivables relates to a change in the classification of the Australian Bulk Mineral guarantee from Current to Non- Current Assets. 3. The increase in Investments and Tax Assets relates to separately identifying Current Assets that were previously included under Other Assets. 4. The decrease in Plant, Equipment and Infrastructure relates to the effect of depreciation and a correction in the estimated opening balance position when accrual budgeting was introduced. 5. The decrease in Other Non-Current Assets relates to the effect of depreciation. 6. The decrease relates to separately identifying the interest bearing liability that was previously included under Payables. 7. The increase in Employee Entitlements reflects the increase in value of employee entitlement due to the effect of the new State Services Wages Agreement and a correction in the estimated opening balance position when accrual budgeting was introduced. 8. The increase in Other Current Liabilities relates to the recognition of a bond held against the Tioxide Plant for rehabilitation of the site received in October 2002 and not included in the 2003-04 Budget.
Chapter 15: Primary Industries, Water and Environment 457 Table 15.20: Statement of Cash Flows for the Department of Primary Industries, Water and Environment 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) CASH FLOWS FROM OPERATING ACTIVITIES Receipts Revenue from Government Appropriation1 67 790) 71 959) 6.1) Fines and Regulatory Fees2 8) 118) ....) Interest Received3 400) 1 660) 315.0) Grants4 4 324) 3 019) (30.2) Sales of Goods and Services5 13 288) 17 865) 34.4) Other Receipts6 17 166) 25 416) 48.0) Payments Employee Entitlements1 (55 307) (59 550) 7.6) Superannuation (5 206) (5 377) 3.2) Grants and Transfer Payments7 (26 534) (22 593) (14.9) Supplies and Consumables1 (32 161) (37 687) 17.1) Other Payments8 (252) (562) 123.0) NET CASH FROM/(USED IN) OPERATING ACTIVITIES (16 484) (5 732) (65.3)
CASH FLOWS FROM INVESTING ACTIVITIES Sale of Fixed Assets 2 000) 2 000) ....) NET CASH FROM/(USED IN) INVESTING ACTIVITIES 2 000) 2 000) ....)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held (14 484) (3 732) (74.3)
Cash at the Beginning of Reporting Period9 40 992) 43 130) 5.2)
Cash at the End of Reporting Period9 26 508) 39 398) 48.6)
Notes: 1. The increase relates to funding for new initiatives – Natural Resource Management (NRM) Regional Committees, Regional Forest Agreement (RFA) Review response, quarantine services for the Spirit of Tasmania III and air monitoring equipment. 2. The increase in Fines and Regulatory Fees relates to the estimated fees to be received from increased costs of permits to use 1080 poison. 3. The increase in Interest Received relates to Interest on Private Forest Reserve Program funds, previously held by the Department of Premier and Cabinet (DPAC). 4. The decrease in Grants and Transfer Payments relates to the finalisation of the Natural Heritage Trust funded Clean Quality Water Program. 5. The increase in Sales of Goods and Services relates to increased funding for the Non Forest Vegetation Commonwealth Project and a number of new Natural Resource Management/National Action Plan Projects, such as
458 Chapter 15: Primary Industries, Water and Environment Holistic Environmental Flow Methods in the NAP Region, Farm Forestry Environmental Services and Operational Whole Farm Planning. 6. The increase in Other Receipts relates to funding for the Private Forests Reserve Program previously held by DPAC. 7. The decrease in Grants and Transfer Payments relates to a revision in the contribution from the Crown Land Administration Fund to the Consolidated Fund, a reduction resulting from the finalisation of the Natural Heritage Trust funded Clean Quality Water Program and increases in funding for Natural Resource Management/National Action Plan Projects and the new initiative, support for NRM Committees. 8. The increase relates to increased funding for Land Management Projects including National Land and Water Resources Audit. 9. The increase relates to a correction in the estimated opening cash balance position that was underestimated when accrual budgeting was introduced.
Chapter 15: Primary Industries, Water and Environment 459 Table 15.20: Statement of Cash Flows for the Department of Primary Industries, Water and Environment (continued) 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) ADMINISTERED ITEMS
CASH FLOWS FROM OPERATING ACTIVITIES Receipts Revenue from Government Appropriation 8 484) 8 592) 1.2) Fines and Regulatory Fees1 14 535) 8 318) (42.8) Sales of Goods and Services2 15 292) 19 195) 25.5) GST Receipts 5 270) 5 270) ....) Other Receipts3 11 603) 6 103) (47.5) Payments Grants and Transfer Payments (8 484) (8 592) 1.2) Transfers to the Consolidated Fund (41 430) (33 616) (18.9) GST Payments (5 270) (5 270) ....) NET CASH FROM/(USED IN) OPERATING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM INVESTING ACTIVITIES NET CASH FROM/(USED IN) INVESTING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held ....) ....) ....)
Cash at the Beginning of Reporting Period ....) ....) ....)
Cash at the End of Reporting Period ....) ....) ....)
Notes: 1. The decrease in Fines and Regulatory Fees relates to a fall in the market price of Abalone and a reduction in the Total Allowable Catch and the abolition of the Planning and Local Government Levy. 2. The increase in Sales of Goods and Services relates to the continued high level of lodgements and dealings in the Land Titles Office. 3. The decrease in Other Receipts relates to a revision in the contribution from the Crown Land Administration Fund to the Consolidated Fund.
460 Chapter 15: Primary Industries, Water and Environment Table 15.21: Reconciliation of Operating Expenses to Consolidated Fund Appropriation 2003-04 2004-05 Budget) Budget) $'000) $'000) Total Operating Expenses 131 245 137 917
Adjustments for Non-cash Items Depreciation (3 202) (3 651) Employee Entitlements .... (476) Supplies and Consumables (99) 571 Total Cash Cost of Outputs 127 944 134 361
Other Funding Sources (51 670) (53 810)
Total Consolidated Fund Appropriation 76 274 80 551
Chapter 15: Primary Industries, Water and Environment 461
16 TASMANIAN AUDIT OFFICE
AGENCY OUTLINE
The statutory office of the Auditor-General is established by the Financial Management and Audit Act 1990. The Tasmanian Audit Office (the Office) supports the Auditor-General in meeting his statutory responsibilities and the Auditor-General is the Head of the Agency. The Office is part of the accountability mechanism by which the Parliament holds the Government accountable for fulfilling its financial responsibilities.
The Auditor-General is responsible for audits under the Financial Management and Audit Act 1990, the Government Business Enterprises Act 1995, the Local Government Act 1993, and other Acts. The Auditor-General also has responsibilities in respect of Commonwealth grants and payments to the State under Commonwealth legislation.
STRATEGIC FOCUS
The broad strategic focus of the Office is encapsulated in its mission 'To enhance accountability of public sector performance in Tasmania'.
The Office contributes to the accountability framework by providing independent audit assurance to Parliament concerning:
• the financial statements of the Treasurer, government agencies and other public bodies; and
• the economy, efficiency and effectiveness of the operations of those entities.
The independent audit assurance provided by the Office is achieved by undertaking:
• financial statement audits;
• performance audits;
• compliance audits;
• special reviews and investigations; and
• reporting to Parliament and clients on the results of audits and investigations.
This strategic focus has been recognised in the Tasmania Together benchmarks. Under Goal 15 - 'Have a system of government that is accountable to the people and plans for the future at all levels' it is stated that one of the challenges is to 'maintain the number of performance-based audits conducted by the Auditor-General'.
Chapter 16: Tasmanian Audit Office 463 The Office has enhanced its corporate governance framework and as a result has prepared a corporate plan for 2004–2008. The corporate plan and the associated business and operational plans will be reviewed by the new Auditor-General.
KEY STRATEGIES
In order to achieve or assist in the achievement of the above strategic focus, the Tasmanian Audit Office is implementing the following key strategies:
• producing relevant reports for Parliament on the performance and accountability of public sector entities;
• undertaking high quality independent audits;
• meeting the needs and expectations of Parliament and other stakeholders;
• seeking identification as an exemplary employer; and
• managing our business with maximum efficiency and effectiveness.
2004-05 MAJOR INITIATIVES
As part of the above key strategies, the Tasmanian Audit Office is implementing the following major initiatives:
• targeting audits to areas offering the greatest potential for the Office to contribute to improved performance and enhanced accountability in the public sector;
• continually improving the structure and content of reports, and methods of communicating audit results to Parliament;
• utilising best practice audit methodologies and practices for all audit activities and ensuring these practices are specifically aimed at improving the efficiency and timeliness of audit services;
• enhancing relationship with all members of Parliament, particularly through the Public Accounts Committee and other Parliamentary Committees;
• being effective in our professional relationships with audited clients through timely and well co-ordinated communications and pro-active identification of audit issues and emerging developments;
• managing its people in an exemplary manner in line with corporate values; and
• continuing to implement and refine business processes to ensure the Office is managed with maximum efficiency and effectiveness.
464 Chapter 16: Tasmanian Audit Office SUMMARY AGENCY 2004-05 BUDGET INFORMATION
Financial Summary
Table 16.1: Summary Financial Information for the Tasmanian Audit Office 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Reserved by Law 254) 263) 3.5) Other Revenue 3 332) 3 553) 6.6) TOTAL 3 586) 3 816) 6.4)
OPERATING EXPENSES Public Sector Management and Accountability 3 553) 3 778) 6.3) TOTAL 3 553) 3 778) 6.3)
NET OPERATING RESULT 33) 38) 15.2)
Chapter 16: Tasmanian Audit Office 465 DETAILED OUTPUT GROUP 2004-05 BUDGET INFORMATION
The sole Output of the Tasmanian Audit Office is provided under Output Group 1, Public Sector Management and Accountability.
Output Group 1: Public Sector Management and Accountability Description
The Office's Outcome Statement is:
'Stakeholders, including Parliament, who are well-informed and who value the Tasmanian Audit Office as a source of independent audit advice and assurance on the performance and accountability of public sector entities'.
The Auditor-General's principal aim is to improve accountability and encourage economic, efficient and effective use of public resources in Tasmania.
The Auditor-General is responsible for auditing the financial affairs and other activities of the Parliament and around 120 public sector organisations, including government agencies, public bodies, government businesses, superannuation funds, health services, educational institutions and local government entities.
Audit findings and recommendations address:
• improvements in the management practices and systems of government organisations;
• fair presentation of financial statements; and
• compliance with legislative and other requirements.
The process to determine audit findings and recommendations involves the carrying out of two types of audits: financial audits and performance audits. Financial Audits
Any audit assignment that relates to forming an opinion on the annual financial statements of a public sector entity is a financial audit. These audits provide independent assurances to the Parliament and the community that the information in the financial statements of public sector entities is presented fairly and in accordance with Australian Accounting Standards. Performance Audits
A performance audit is an audit that evaluates whether an organisation is achieving its objectives effectively, economically, efficiently and in compliance with relevant legislation.
466 Chapter 16: Tasmanian Audit Office Table 16.2: Summary Financial Information - Output Group 1 2003-04) 2004-05) Public Sector Management and Accountability Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Reserved by Law 254) 263) 3.5) Investment Income1 48) 16) (66.7) Sales of Goods and Services2 3 284) 3 537) 7.7) TOTAL 3 586) 3 816) 6.4)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 2 157) 2 254) 4.5) Other Employee Related Expenses 221) 228) 3.2) Superannuation 230) 232) 0.9) Depreciation and Amortisation3 86) 133) 54.7) Supplies and Consumables Consultants 159) 186) 17.0) Maintenance and Property Services 152) 156) 2.6) Communications 28) 32) 14.3) Information Technology 98) 111) 13.3) Travel and Transport 80) 89) 11.3) Other Supplies and Consumables 342) 357) 4.4) TOTAL 3 553) 3 778) 6.3)
EXPENSE BY OUTPUT 1.1 Public Sector Management and Accountability 3 553) 3 778) 6.3) TOTAL 3 553) 3 778) 6.3)
Notes: 1. Interest revenue estimate in 2003-04 was overstated. 2. Sales of Goods and Services has increased as a result of additional funding from the Government for compliance audit activity. 3. The depreciation expense has increased as a result of the investment in additional hardware and software in 2003-04.
Chapter 16: Tasmanian Audit Office 467 Table 16.3: Performance Information - Output Group 1 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Financial statement audits completed within four months of balance date % 62 75 95 95 Financial statement audits completed within 30 days of receipt of signed final financial statements % 94 97 90 90 Client General Satisfaction Index % 73 77 75 75 Client index on timeliness of financial statement audits % 71 77 75 75 Number of performance audits tabled during the year Number 4 6 5 8 Usefulness index for performance audits % 70 79 75 75 Parliamentarian General Satisfaction Index % 73 73 75 75
Performance Information Comments
The Office's performance indicators for 2002-03 show an improved performance with all but one performance indicator reaching the target. Financial Statement Audits Completed within four months of Balance Date While the Office does not have performance agreements with our clients in respect of issuing audit reports within a specific time frame, the Office has its own benchmarks. Most of the Office's clients have a 30 June balance date and, as such, the Office's benchmark prior to 2003-04 was that all clients would receive an audit report within four months of the balance date, that is, by 31 October. With the new reporting requirements, the performance indicator has been altered to having completed audits within 3.5 months for government agencies and Government Business Enterprises and four months for all other clients. Our performance has improved from 48 per cent (2000-01) to 62 per cent (2001-02) to 75 per cent (2002-03) but is still a long way short of the target of 95 per cent. From 2004, this indicator must be balanced against the legislative requirement for agencies to provide a set of financial statements to the Office until 31 August each year. Therefore, in effect, the Office has only two months to meet the new target. There are no incentives for agencies and other public bodies to provide final signed financial statements earlier, other than the requirement to table their annual reports, including audited financial statements, in Parliament by 31 October each year. The Office is working with clients to ensure accurate financial statements are provided earlier so as to improve the process and timeliness of completing all financial statement audits. Financial Statement Audits Completed within 30 days of Receipt of Signed Final Financial Statements This performance indicator illustrates how effective the Office is in providing an audit report within 30 days of receiving signed final financial statements. While the Office receives financial statements by the statutory dates, these statements in the majority of cases are still in draft format and, even if they are signed financial statements, the statements may still need amendments as a result of audit findings. The legislation does not clearly stipulate that the financial statements to be forwarded are of a final nature although the Office
468 Chapter 16: Tasmanian Audit Office interprets this as a requirement. The performance indicator target for the Office is 90 per cent based on the fact that there is a heavy demand on the Office's staff to complete audits during September and October as a result of the practice of some clients providing signed financial statements that require subsequent revisions before the Office can issue an audit report. Over the past three years, the Office has met and improved its performance from 93 per cent in 2000-01, 94 per cent in 2001-02 to 97 per cent in 2002-03. Client General Satisfaction Index Each year, the Office surveys its clients covering topics such as performance, satisfaction, timeliness, communication and audit process. The performance indicator target is 75 per cent, being a good to very good rating. The Office achieved a satisfaction rate of 77 per cent for the 2002-03 audit cycle, which was slightly up from the previous year (73 per cent). Over the past five years, the average was 75 per cent. Client Index on the Timeliness of Financial Statement Audits As part of the annual client survey, the Office asks questions in relation to the timeliness of financial statement audits completed. The target set by the Office is 75 per cent (good to very good), and in previous years the Office was rated as good (67 per cent in 1999-00), good to very good (75 per cent in 2000-01), good to very good (71 per cent in 2001-02), and good to very good (77 per cent in 2002-03). This rating indicates that the clients accept the fact that the timeliness issue associated with preparing financial statements and issuing an audit report is a shared responsibility and there is a recognition that all parties can improve further. Number of Performance Audits Tabled during the Year Under Goal 15 of Tasmania Together, it is stated that one of the challenges is to 'maintain the number of performance-based audits conducted by the Auditor-General'. The number of performance audit reports targeted for tabling each year is three to four. The Office tabled six reports during the 2002-03 financial year. Usefulness Index for Performance Audits and Parliamentarian General Satisfaction Index Under its corporate strategic focus, the Office surveys its clients, stakeholders and staff annually. The Office has also surveyed Parliamentarians in the past to ascertain their perception of performance and the usefulness of the reports the Office produces, both performance audit reports and other statutory reports on the Treasurer's Financial Statements, government agencies and other public bodies. In last year's survey, the response rate was 38 per cent, a marked improvement on the previous year (17 per cent). The Office will seek to increase the participation rate of Parliamentarians.
The results for the General Satisfaction Index rated the Office at 73 per cent. The target is 75 per cent. The Office is reviewing how Parliamentarians should be surveyed in the future. The Office is also looking at building a closer relationship with Parliamentarians.
The results for the Usefulness Index rated the Office at 79 per cent, an increase from 70 per cent in the last survey. The target remains at 75 per cent.
Chapter 16: Tasmanian Audit Office 469 DETAILED BUDGET STATEMENTS
Table 16.4: Output Group Expense Summary for the Tasmanian Audit Office 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) Output Group 1 - Public Sector Management and Accountability 1.1 Public Sector Management and Accountability 3 553) 3 778) 6.3) 3 553) 3 778) 6.3)
TOTAL AGENCY 3 553) 3 778) 6.3)
Table 16.5: Statement of Financial Performance for the Tasmanian Audit Office 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Reserved by Law 254) 263) 3.5) Investment Income1 48) 16) (66.7) Sales of Goods and Services2 3 284) 3 537) 7.7) TOTAL 3 586) 3 816) 6.4)
OPERATING EXPENSES Employee Entitlements 2 378) 2 482) 4.3) Superannuation 230) 232) 0.8) Depreciation and Amortisation3 86) 133) 54.6) Supplies and Consumables 859) 931) 8.3) TOTAL 3 553) 3 778) 6.3)
NET OPERATING RESULT 33) 38) 15.1)
Notes: 1. Interest revenue estimate in 2003-04 was overstated. 2. The Sale of Goods and Services has increased as a result of additional funding from the Government for compliance audit activity. 3. The depreciation expense has increased as a result of the investment in additional hardware and software in 2003-04.
470 Chapter 16: Tasmanian Audit Office Table 16.6: Statement of Financial Position as at 30 June for the Tasmanian Audit Office 2004) 2005) Budget) Budget) Variation) $'000) $'000) %) CURRENT ASSETS Cash 666) 769) 15.4) Receivables1 260) 388) 49.2) Prepayments2 20) 31) 55.0) Accrued Revenue3 478) 116) (75.8) Tax Assets4 105) 271) 158.0) TOTAL 1 529) 1 575) 3.0)
NON-CURRENT ASSETS Receivables4 200) ....) (100.0) Plant and Equipment5 157) 217) 38.2) TOTAL 357) 217) (39.3)
TOTAL ASSETS 1 886) 1 792) (5.0)
CURRENT LIABILITIES Payables6 238) 59) (75.3) Employee Entitlements7 281) 237) (15.7) Accrued Expenses6 177) 40) (77.5) Other4 19) (5) (126.4) TOTAL 715) 331) (53.8)
NON-CURRENT LIABILITIES Employee Entitlements7 326) 399) 22.3) Other4 70) 33) (52.9) TOTAL 396) 432) 9.0)
TOTAL LIABILITIES 1 111) 763) (31.4)
NET ASSETS 775) 1 029) 32.7)
Notes: 1. The increase in Receivables reflects an increase in the rate of billing of work in progress. 2. The increase in Prepayments reflects an increase in the prepayment of software maintenance and support contracts to support the Office's increased software application purchases. 3. The decrease in Accrued Revenue includes unbilled work in progress, as a result of increased billing. 4. The Tasmanian Audit Office, while not a Government Business required to pay Income Tax Equivalents, pays an income tax equivalent and a dividend to the Consolidated Fund. The increase in Tax Assets is the future payment that was previously split between Current and Non-Current Assets (Receivables). The movements in Current and Non-Current Liabilities reflect the changes in the provision for this payment and the deferred payment.
Chapter 16: Tasmanian Audit Office 471 5. The increase in Plant and Equipment reflects the net change as a result of purchasing additional assets, mainly information technology equipment, and adjusting for depreciation. 6. The movement in Payables and Accrued Expenses is a result of the Office paying its income tax equivalent and dividend to the Consolidated Fund at year end and not in the next financial year. 7. The movement in Employee Entitlements reflects the accrual of long service leave entitlements.
Table 16.7: Statement of Cash Flows for the Tasmanian Audit Office 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) CASH FLOWS FROM OPERATING ACTIVITIES Receipts Revenue from Government Reserved By Law 254) 263) 3.5) Interest Received1 48) 16) (66.7) Sales of Goods and Services2 3 034) 3 462) 14.1) Payments Employee Entitlements (2 382) (2 417) 1.4) Superannuation 231)(231) ....) Supplies and Consumables3 (833) (1 062)27.4) NET CASH FROM/(USED IN) OPERATING ACTIVITIES (110) 31) (128.2)
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of Fixed Assets4 ....) (100) ....) NET CASH FROM/(USED IN) INVESTING ACTIVITIES ....) (100) ....)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held (110) (69) (37.3)
Cash at the Beginning of Reporting Period 776) 838) 7.9)
Cash at the End of Reporting Period 666) 769) 15.4)
Notes: 1. Interest revenue estimate in 2003-04 was overstated. 2. The Office will receive additional funding from the Government for compliance audit activity. 3. The Office has allowed for increases in all supply costs and it is expected that the Office will pay more into the Consolidated Fund for dividend, capital charge and income tax equivalents. 4. The Purchase of Fixed Assets is for the replacement of information technology equipment and leasehold improvements.
472 Chapter 16: Tasmanian Audit Office Table 16.7: Statement of Cash Flows for the Tasmanian Audit Office (continued) 2003-04) 2004-05)) Budget) Budget) Variation) $'000) $'000) %) ADMINISTERED ITEMS
CASH FLOWS FROM OPERATING ACTIVITIES Receipts GST Receipts 264) 264) ....) Payments GST Payments (264) (264) ....) NET CASH FROM/(USED IN) OPERATING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM INVESTING ACTIVITIES NET CASH FROM/(USED IN) INVESTING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held ....) ....) ....)
Cash at the Beginning of Reporting Period ....) ....) ....)
Cash at the End of Reporting Period ....) ....) ....)
Chapter 16: Tasmanian Audit Office 473 Table 16.8: Reconciliation of Operating Expenses to Consolidated Fund Appropriation 222003-04 2004-05) Budget) Budget) $'000) $'000)
Total Operating Expenses 3 553) 3 778
Adjustments for Non-Cash Items Depreciation (86) (133) Employee Entitlements 5 (66) Supplies and Consumables (26) 131 Total Cash Cost of Outputs 3 446 3 710
Other Funding Sources (3 192) (3 447)
Total Consolidated Fund Appropriation 254 263
474 Chapter 16: Tasmanian Audit Office 17 DEPARTMENT OF TOURISM, PARKS, HERITAGE AND THE ARTS
AGENCY OUTLINE
The Department of Tourism, Parks, Heritage and the Arts is the State Government's lead agency responsible for the sustainable management and promotion of the State's unique natural, Aboriginal, historic and cultural heritage assets.
Following its establishment in August 2002, the Department's mission has been to give the State a new focus on the advantages central to Tasmania's identity – its natural and cultural heritage and creativity. All three of these assets are central to the vision for the New Tasmania.
The Department is focused on developing a more integrated approach to the sustainable management, protection and promotion of Tasmania's intrinsic heritage assets. It is also ensuring Tasmania has a sustainable tourism industry that is responsive to this approach and continues to be a key driver of future economic success for this State.
The Department continues to work to ensure that communities benefit both socially and economically from the growth that Tasmania is experiencing and that its environment, the very reason many visitors come to the State, is managed to benefit all Tasmanians and visitors.
The State Government recognises that tourism is a driving force in Tasmania's growing economy and is a billion dollar industry. The Department is now focusing on a new era of sustainable development and growth in partnership with the tourism industry. This new era will be ushered in with the launch of Tourism 21: 2004-2014 later this year. Tourism 21: 2004-2014 also addresses the challenges of access to the State.
Tasmania is renowned for its natural heritage, which includes the Tasmanian Wilderness World Heritage Area, which is one of the largest conservation reserves in Australia. The Department strives to conserve and protect Tasmania's unique natural heritage, while providing recreational opportunities, infrastructure and services for all visitors.
Essential to the promotion of Tasmania is its cultural heritage; the Aboriginal examples of which can date back many thousands of years and offer a poignant interpretation of the lives of the State's traditional landholders. The Department continues to focus on protecting the State's Aboriginal heritage and is overseeing the development of new Aboriginal Heritage legislation to better achieve this.
Tasmania is also becoming increasingly recognised, by locals and visitors alike, for its outstanding historic heritage.
Chapter 17: Tourism, Parks, Heritage and the Arts 475 The State's world-class collection of built heritage, from European settlement to the present day, includes places of local, national and international significance. The protection, conservation and promotion of Tasmania's historic heritage are critical, especially as the State's historic heritage helps to promote understanding of Tasmania, its sense of place and its development over time.
The Department is charged with increasing the status of the arts as one of the State's cultural and economic drivers. It is doing this through various cultural events such as Young Designers' Month and Tasmanian Living Artists' Week, and through the creation of employment opportunities in the cultural industries.
The Department delivers its services to the community and industry through Tourism Tasmania (incorporating Events Tasmania), the Parks and Wildlife Service, the Tasmanian Heritage Office, the Aboriginal Heritage Office, Arts Tasmania and the Tasmanian Bicentenary Office.
The Department also includes the Tasmanian Museum and Art Gallery and has close links with related organisations such as the Royal Tasmanian Botanical Gardens, Port Arthur Historic Site Management Authority, the Tasmanian Heritage Council and the Boards of the Museum and the Gardens.
476 Chapter 17: Tourism, Parks, Heritage and the Arts STRATEGIC FOCUS
The vision of the Department of Tourism, Parks, Heritage and the Arts is to have Tasmania recognised for its natural and cultural heritage and creativity. To achieve this objective, the Department is guided by its mission - to give the State a new focus on the advantages central to Tasmania's identity – its natural and cultural heritage and creativity. All three of these assets are central to the vision for the New Tasmania.
The Department is committed to working in partnership with industry and commerce, the arts, cultural heritage and tourism sectors and the community in general. It provides advice and services, develops policies and plans, and manages projects and facilities that support the achievement of the visions and goals of Tasmania Together.
Specifically, the Department has a significant role in helping to achieve the following Tasmania Together goals:
• Goal 9 - Foster an inclusive society that acknowledges and respects our multicultural heritage, values diversity and treats everyone with compassion and respect;
• Goal 10 - Acknowledge and respect the contribution that the Aboriginal community and its culture have made and continue to make to Tasmania and its identity;
• Goal 11 - Have Tasmania recognised nationally and internationally for its innovation, pursuit of excellence and creativity in arts and culture;
• Goal 20 - Promote our island advantages, including our 'clean, green' image, natural resources, location and people;
• Goal 21 - Value, protect and conserve our natural and cultural heritage;
• Goal 23 - Ensure there is a balance between environmental protection and economic and social development; and
• Goal 24 - Ensure our natural resources are managed in a sustainable way now and for future generations.
Within this framework, the Outcomes that will determine the strategic directions of the Department will be:
• to contribute to job creation and increase the wealth of Tasmania through the development of the tourism industry;
• to create and maintain a representative and world renowned reserve and park system that achieves the principal goal of conserving the State's natural and cultural heritage while providing for sustainable use and economic opportunities for the Tasmanian community;
• to promote understanding of the value and importance of Tasmania's historic heritage;
• to value, identify, conserve and promote Aboriginal heritage for present and future generations;
• to raise the status of the arts as a cultural and economic driver for the State and provide a conduit for developing a unique cultural 'brand' for Tasmania; and
• to promote and facilitate interaction with, and understanding of, the cultural and natural world for present and future generations by collecting and conserving material evidence within the areas of humanities, including visual arts, history and anthropology, and the biological and physical sciences.
Chapter 17: Tourism, Parks, Heritage and the Arts 477 The Department also supports Partnership agreements with Local Government and other groups, industry development activities, promotion of local opportunities for employment, education and technology, and working with the community to provide the best outcomes for the State.
KEY STRATEGIES
Tourism Tasmania
Tourism Tasmania contributes to the economic development of Tasmania and to the increase in employment from tourism and related industries by positioning Tasmania nationally and internationally as a premier holiday and convention destination. It facilitates the sustainable development of market ready products and seeks to convert the considerable interest in Tasmania to actual visits and expenditure. Events Tasmania provides support for the maintenance and development of existing major events, the attraction of events to Tasmania that assist in returning a high level of investment, social and cultural benefits, and the expansion of business opportunities from major events.
Tourism Tasmania's strategies are determined through the joint Government and industry strategic business plan, Tourism 21, which establishes a 10 year vision with challenging targets for visitor expenditure and jobs growth.
This Plan sets out a joint blueprint for growth, with precise targets, strategies and deadlines. It has ushered in a new era of partnership and a determination to create a world-class tourism industry in Tasmania.
Tourism 21: 2004-2014, the new Plan to be launched later this year, will embrace the following key needs identified in consultation and discussion with industry and the Tasmanian community.
Strategy 1 – Our Customers
There is a need to enhance our understanding of our customers and the triggers to buy a Tasmanian holiday; further our capability to assess emerging global trends in tourism; and share this information with industry and stakeholders.
Strategy 2 – The Experiences
Our industry must adopt an experience focus, where engagement with people, place and activity is fundamental to the quality and diversity of the Tasmanian holiday and embrace product development that recognises real sustainability through adopting social and environmental, as well as economic, criteria. The State Government and industry both have a role to ensure basic infrastructure is in place to meet growing demand and must continue to place air and sea access at the highest levels in tourism agendas.
Strategy 3 – Our Brand
We must position the Tasmanian tourism brand and manage it to ensure that the brand promise is supported and delivered.
Strategy 4 – Our Marketing
A priority for government and industry is to communicate to consumers that Tasmania is a destination rich with experiences and ensure that they can readily purchase the desired holiday through their preferred distribution channel.
478 Chapter 17: Tourism, Parks, Heritage and the Arts Strategy 5 – Linking the Community
The industry must continue to engage the community on tourism development and growth issues and encourage a shared understanding of tourism visitor needs with industries that interact with tourism.
Strategy 6 – Meeting Expectations
Lastly, industry and the State Government are working towards building tourism business sustainability, service quality, and a balanced scorecard approach with the development of appropriate social, environmental and economic criteria for tourism outcomes.
Parks and Wildlife Service
The Parks and Wildlife Service is responsible for managing Tasmania's parks and reserves, and for protecting the State's natural heritage. At the same time, it provides for sustainable use and economic opportunities for the Tasmanian community by ensuring parks are managed properly and are attractive to visitors.
The Parks and Wildlife Service will:
• respond to the increased visitor numbers and the changing visitor profile by ensuring appropriate facilities are available in Tasmania's national parks and reserves;
• continue to support youth and regional employment through existing trainee programs;
• provide Tasmanian Aboriginal field officer traineeships;
• continue to implement the capital works program including Cradle Valley infrastructure;
• develop a contemporary legislative framework governing the Parks and Wildlife Service;
• develop and implement a plan to strategically guide the future management, presentation and marketing of the Overland Track; and
• manage the conservation values of the Tasmanian Wilderness World Heritage Area.
Tasmanian Heritage Office
The Tasmanian Heritage Office provides policy advice to the State Government and expert heritage advice to other agencies, Local Government, the private sector and the wider Tasmanian community. The Tasmanian Heritage Office also provides expert advice and secretariat support to the Tasmanian Heritage Council, assisting the Heritage Council to meet its statutory obligations under the Historic Cultural Heritage Act 1995. The Heritage Council has recently completed a Strategic Plan, which has identified a number of strategies to address key priorities. This will enable the Heritage Council to better meet its statutory obligations, and work collaboratively with the Heritage Office to protect, conserve and promote heritage in Tasmania. A key role of the Heritage Office during 2004-05 and 2005-06 will be to implement the Tasmanian Heritage Council's Strategic Plan. These and other priorities will be addressed in a new Business Plan for the Tasmanian Heritage Office.
Chapter 17: Tourism, Parks, Heritage and the Arts 479 Aboriginal Heritage Office
During 2004-05, the Aboriginal Heritage Office will maintain a high level of project and conservation management activities and focus on servicing regulatory obligations. In addition, it will:
• facilitate and support the creation of new Aboriginal Heritage legislation;
• identify, conserve and understand Tasmania's Aboriginal heritage;
• facilitate a community engaged and educated in cultural heritage;
• develop policies and processes of the highest standard which are clear, equitable and accessible to all; and
• foster sustainable management of Tasmania's Aboriginal heritage assets consistent with legislative and statutory obligations.
Arts Tasmania
The role of Arts Tasmania is to raise the status of the arts as a cultural and economic driver for the State and provide a support mechanism for developing a unique cultural 'brand' for Tasmania. A successful, prosperous Arts community in Tasmania will grow with government and broader business and community support of these creative and innovative people. It is their ideas and outputs that help fuel the economy, and that are a visible and a valued part of our culture.
In 2004-05, the outcomes to be achieved by Arts Tasmania are:
• a community motivated to engage with the arts;
• Tasmania recognised for excellence in arts practice;
• increased Aboriginal participation in contemporary and traditional art forms as both practitioners and audiences;
• increased support for the arts from community, government and corporate sources for infrastructure, recurrent spending and projects;
• increased financial returns to artists, promoting financial independence where feasible; and
• evolution of a distinctive and authentic Tasmanian voice, raising awareness and acceptance of diversity and the historic context of Tasmania's culture.
Tasmanian Museum and Art Gallery
The Tasmanian Museum and Art Gallery aims to promote and facilitate interaction with, and the understanding of, the cultural and natural world for present and future generations and to develop the Museum as an icon for Tasmania. It achieves this:
• by providing acquisition, collection management, exhibition, curatorial and research services at a nationally and internationally recognised standard;
• through the promotion of excellence, and participation in, and access to, a wide range of artistic and cultural activities; and
480 Chapter 17: Tourism, Parks, Heritage and the Arts • through the conservation of heritage assets to maximise their social, cultural and economic potential.
2004-05 MAJOR INITIATIVES
In 2004-05, the Department of Tourism, Parks, Heritage and the Arts will focus on the following major initiatives.
Tourism Tasmania
In 2004-05, Tourism Tasmania will:
• maximise the opportunities provided by increased sea and air access to the State by communicating to consumers that Tasmania is a destination rich with experiences and will ensure they can readily purchase the desired holiday through their preferred distribution channel;
• focus on increasing the number of potential holidaymakers into actual holidaymakers, and market share in the Victorian and New South Wales markets;
• facilitate the delivery of precinct plans for tourism clusters at Freycinet, in the Huon Valley, and at Stanley addressing social, environmental and economic outcomes for industry and local communities;
• position and manage the Tasmanian tourism brand to ensure that the brand promise is supported and delivered; and
• implement the new Customer Conversion Program to increase conversion of interest to bookings in the Launceston based Customer Service Centre and the Tasmanian Travel Centres in Sydney and Melbourne.
Parks and Wildlife Service
In 2004-05, the Parks and Wildlife Service will:
• continue to implement Strategic Asset Management Plans for all major assets in parks and reserves;
• respond to the increasing visitor numbers and the changing visitor profile by ensuring appropriate visitor facilities are available in Tasmania's national parks and reserves;
• continue to implement the capital works program including Cradle Valley infrastructure;
• develop and implement a plan to strategically guide the future management, presentation and marketing of the Overland Track; and
• maintain the level of fire reduction burning particularly in areas adjacent to freehold land and implement the ecological burning program targeted at maintaining biodiversity in fire dependent ecosystems in the Tasmanian Wilderness World Heritage Area.
Tasmanian Heritage Office
In 2004-05, the Tasmanian Heritage Office will:
• support the Tasmanian Heritage Council in the implementation of its new Strategic Plan;
Chapter 17: Tourism, Parks, Heritage and the Arts 481 • commence development of a dedicated communications and education program;
• work to further enhance efforts to promote heritage and tourism;
• work with Local Government to initiate new heritage partnerships and expand existing ones;
• as part of a new State Government initiative, undertake local heritage surveys and make provision for heritage precincts; and
• assist heritage property owners with grants from the Heritage Conservation Fund.
Aboriginal Heritage Office
In 2004-05, the Aboriginal Heritage Office will:
• protect Aboriginal heritage and service the Aboriginal Relics Act 1975, recognising that Tasmania’s Aboriginal heritage is unique, and that it is important to manage Aboriginal heritage to ensure that it is available for future generations; and
• support the creation of new Aboriginal Heritage legislation.
Arts Tasmania
In 2004-05, Arts Tasmania will:
• provide indexation to the Queen Victoria Museum and Art Gallery, in line with the Partnership agreement between the State and the Launceston City Council, and ensure that its world-class activities are adequately funded into the future;
• present a major national exhibition of contemporary design in Hobart and Launceston following its premiere at the Sydney Opera House;
• introduce a new award taking the form of a series of monographs, published annually, featuring one artist's work, selected on merit for their national and international contribution to the advancement of Tasmanian art; and
• create a Diaspora project entitled Reflections of Tasmania, which will bring back to Tasmania international author Peter Conrad and other celebrated and prominent Tasmanians who have made their mark in the arts nationally, and internationally, across a wide range of art forms.
Tasmanian Museum and Art Gallery
In 2004-05, the Tasmanian Museum and Art Gallery will:
• facilitate the transfer and installation of collections at the Tasmanian Museum and Art Gallery's new collection storage facility at Rosny;
• continue the national tour of the major art exhibition John Glover and the Colonial Picturesque;
• with increased funding from the State Government, establish a world-class exhibition space focused on Tasmania's unique relationship with Antarctica and the Southern Ocean; and
• actively pursue opportunities to further develop partnerships with other government and private sector organisations to enhance the profile of the arts and sciences in Tasmania.
482 Chapter 17: Tourism, Parks, Heritage and the Arts Economic and Social Infrastructure Fund
The Government has allocated significant funding to the Department from the Economic and Social Infrastructure Fund for the purpose of advancing key tourism, parks and heritage projects.
$4.0 million over two years has been provided to Tourism Tasmania to continue building awareness of the Tasmanian tourism brand in New South Wales through further development of the Rejuvenating Journey marketing program. This will be done in partnership with TT-Line to maximise opportunities from the Spirit of Tasmania III service between Sydney and Devonport.
$10.0 million was provided for Parks and Heritage projects in 2003-04, and has been allocated to a number of infrastructure projects over 2003-04 and 2004-05 that concentrate on improving visitor services.
$2.5 million has been allocated for the further development of York Park in Launceston during 2003-04 and 2004-05. $645 000 has been provided over 2003-04 and 2004-05 for the implementation of a business plan relating to the commercial management and promotion of Highfield House near Stanley.
Chapter 17: Tourism, Parks, Heritage and the Arts 483 SUMMARY AGENCY 2004-05 BUDGET INFORMATION
Financial Summary
Table 17.1: Summary Financial Information for the Department of Tourism, Parks, Heritage and the Arts 2003-04) 2004-05) Budget) Budget) Variation) $'000 $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 60 989) 64 626) 6.0) Other2 500) …. (100.0) Other Revenue 12 715) 12 150) (4.4) TOTAL 74 204) 76 776) 3.5)
OPERATING EXPENSES Tourism 33 423) 34 953) 4.6) Parks and Wildlife Management 29 087) 30 362) 4.4) Heritage and the Arts3 11 533) 13 004) 12.8) Grants and Subsidies4 3 768) 5 357) 42.2) Other2 2 631) 2 101) (20.1) TOTAL 80 442) 85 777) 6.6)
NET OPERATING RESULT (6 238) (9 001) 44.3)
Notes: 1. The increase in the Annual Appropriation reflects additional funding provided for the Antarctic and Southern Oceans Exhibit, the Tasmanian Symphony Orchestra and increased protection of Tasmania's historic heritage assets. 2. The variance represents Capital Investment Program funding carried forward from the Cradle Mountain Infrastructure project in 2003-04. 3. The variance reflects additional expenditure on the Southern Oceans Exhibit and increased protection of Tasmania's historic heritage assets. 4. The variance represents increased funding for the Tasmanian Symphony Orchestra and the Ten Days on the Island festival.
484 Chapter 17: Tourism, Parks, Heritage and the Arts DETAILED OUTPUT GROUP 2004-05 BUDGET INFORMATION
The individual Outputs of the Department of Tourism, Parks, Heritage and the Arts are provided under the following Output Groups:
Output Group 1: Tourism;
Output Group 2: Parks and Wildlife Management; and
Output Group 3: Heritage and the Arts.
Output Group 1: Tourism Description
This Output Group supports the Government's economic objectives by implementing programs to facilitate growth in the number of visitors coming to Tasmania, thereby generating increased visitor expenditure and local employment opportunities.
Tourism Tasmania's mission is to provide leadership in positioning Tasmania as a premium visitor destination by facilitating sustainable development, undertaking strategic marketing and increasing growth of quality product. Success is dependent on:
• marketing activities which are predominantly purchased externally and coordinated internally;
• the development of a sustainable and internationally competitive tourism industry comprising participants who deliver quality services and experiences; and
• integrated communications to the tourism trade, tourism operators, key stakeholders, government, the media and the community at large.
This Output Group supports a number of Departmental Outcomes, in particular the positioning of Tasmania, nationally and internationally, as a quality tourism destination.
Activities undertaken as part of this Output Group include:
• brand advertising to raise 'appeal' and 'intention' levels among consumers;
• tactical marketing activities with industry partners to convert interest generated to travel;
• the maintenance of sales and public relations representation in selected overseas markets;
• public and media relations initiatives that leverage opportunities by working with travel trade and destination writers;
• the Visiting Journalists Program which brings Australian and international journalists to Tasmania to link publicity opportunities with national and international marketing strategies;
• the provision of support for the meetings, conferences and major events markets;
• the facilitation of sustainable development of products, infrastructure and services to meet identified market opportunities;
Chapter 17: Tourism, Parks, Heritage and the Arts 485 • consultancy services for intending and current industry operators, including the facilitation of product and infrastructure development, industry training, operational advice and input into industry planning and development;
• the annual Tasmanian Visitor Survey and a sophisticated forecasting model that is available to industry to guide ongoing business and investment decisions;
• innovative research and business modelling to assist in the development of new strategies to give Tasmania a distinctive and competitive edge;
• the development of partnerships to ensure that the respective roles of industry groups, regional associations and State and Local Government in the tourism industry are coordinated;
• industry awareness programs to ensure the Tasmanian community has an understanding of the value of the tourism industry and the proactive role individual Tasmanians can play in achieving its full potential;
• tourism distribution services that convert demand for Tasmanian travel product to retail sales, provide a channel for travel related consumer information and ensure effective and efficient presentation and distribution of Tasmanian tourism products;
• a wholesale operation that maximises innovation to ensure effective distribution of Tasmanian tourism products through the retail travel trade;
• a Customer Service Centre in Launceston and interstate retail outlets that assist the growth of tourism to Tasmania through direct sales and the provision of visitor information; and
• support services for the maintenance of existing major events and the attraction of events with high participation to Tasmania.
This Output Group contributes to the achievement of Tasmania Together Goal 20 – Promote our island advantages, including our 'clean, green' image, natural resources, location and people, and Goal 23 - Ensure there is a balance between environmental protection and economic and social development. In addition, it contributes to economic goals relating to job opportunities and business investment and growth.
486 Chapter 17: Tourism, Parks, Heritage and the Arts Table 17.2: Summary Financial Information - Output Group 1 2003-04) 2004-05) Tourism Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 26 209) 26 411) 0.8) Sales of Goods and Services1 7 217) 8 000) 10.8) Other Revenue2 1 318) …. …. TOTAL 34 744) 34 411) (1.0)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 9 884) 10 361) 4.8) Other Employee Related Expenses 805) 819) 1.7) Superannuation 924) 945) 2.3) Depreciation and Amortisation 82) 82) ....) Grants and Transfer Payments 3 540) 3 540) ....) Supplies and Consumables Maintenance and Property Services 1 587) 1 587) ....) Information Technology 1 555) 1 547) (0.5) Travel and Transport 747) 747) ....) Advertising and Promotion 11 849) 12 149) 2.5) Other Supplies and Consumables3 2 450) 3 176) 29.6) TOTAL 33 423) 34 953) 4.6)
EXPENSE BY OUTPUT 1.1 Tourism Marketing 14 868) 15 344) 3.2) 1.2 Tourism Industry Development 5 186) 5 384) 3.8) 1.3 Tourism Distribution Services3 10 652) 11 523) 8.2) 1.4 Major Events Support 2 717) 2 702) (0.6) TOTAL 33 423) 34 953) 4.6)
Notes: 1. The variance reflects increased product sales by Tourism Tasmania. 2. The variance reflects the transfer of the Investment in the TT-Line Company Pty Ltd to Finance-General. 3. The variance reflects increases in general operating costs.
Major Issues and Initiatives for 2004-05
Moderate growth for inbound leisure tourism is expected to 2005, with increased growth predicted from 2005 as the global economy strengthens.
The Tourism Forecasting Council predicts total inbound travel to Australia will increase by eight per cent to more than five million visitors in 2004. This growth reflects an expectation and realisation of some pent-up demand for Australia following the decline in arrivals between 2001 and 2003. The average annual growth rate over the forecast period to 2012 is expected to be 4.8 per cent.
Chapter 17: Tourism, Parks, Heritage and the Arts 487 The outlook for inbound tourism to Tasmania is slightly softer in the short-term as key economies are still recovering. Strong annual growth of between six and nine per cent is forecast between 2005 and 2008.
The gradual strengthening of key international markets is likely to make travel to Australia more viable. This will provide more outbound seats at competitive prices, thus making outbound travel for Australians more affordable with domestic travel potentially becoming less attractive.
Domestic tourism accounts for 76 per cent of Australia's total tourism activity. Domestic tourism (visitor nights) is expected to show moderate growth of 0.9 per cent in 2004. Nationally, recent growth has largely been driven by people travelling for the purpose of visiting friends and relatives (VFR) and business. Low price fares entering the air market from March 2003 have accelerated this aspect. However, all leisure travellers are motivated by current low access costs between leisure destinations within Australia.
While some 694 000 visitors came to Tasmania in the twelve months to December 2003 by regular scheduled sea and air services, Tourism Tasmania's forecasting model projects international and domestic visitor arrivals growing to 756 000 by 30 June 2005, as a consequence of the above influences.
The challenge confronting Tasmania as the economy softens through 2005 is to maintain its current high level of visitation while evaluating and implementing strategies through the new 10 year vision, Tourism 21: 2004-2014, to encourage further growth in the industry. Adequate levels of new investment in appropriate new tourism infrastructure will be a key element to these strategies.
In this environment, Tourism Tasmania will focus on a number of initiatives. Tourism Marketing Tourism Tasmania will:
• continue to build Tasmania as a desirable holiday destination in key interstate and international markets;
• develop new initiatives to increase the number of potential holidaymakers in the New South Wales and Victorian markets into actual holidaymakers;
• further develop global web capacity and overall e-marketing to connect appropriate information and products with consumers;
• work with key trade partners, both domestically and internationally, to increase the number of potential holidaymakers into actual holidaymakers;
• continue to enhance Tasmania’s standing as a destination by the use of strategic public relations through representation in North America, the United Kingdom, Germany and Australia;
• continue to work with airlines to gain comprehensive service and fares to Tasmania including more direct connections, along with continuing and growing international charters from Singapore and other potential markets;
• continue to position the Tasmanian tourism brand and manage it to ensure that the brand promise is supported and delivered;
• work in cooperation with Tourism Victoria and South Australia Tourism to promote the concept of extended touring routes; and
• continue to support Brand Tasmania and embrace the principles that add to the dimension of tourism marketing.
488 Chapter 17: Tourism, Parks, Heritage and the Arts Tourism Destination Development Tourism Tasmania will:
• through the Tourism Development Steering Committee, ensure that the increased demand created by increased sea and air access is matched with new infrastructure that meets visitor demand;
• facilitate the delivery of precinct plans for tourism clusters at Freycinet, in the Huon Valley, and at Stanley addressing social, environmental and economic outcomes for industry and local communities;
• in cooperation with Local Government and other government agencies, continue the implementation of the Cradle Development Plan;
• continue to raise awareness of the benefits of an experience focus as the basis for a Tasmanian holiday and the level of industry skills and knowledge required to implement it;
• work with operators and developers to create new experiential holiday products linked to brand values and consumer expectations;
• through the medium of Partnership agreements with Local Government, encourage the development of local tourism plans as part of the ongoing implementation of touring route strategies statewide;
• undertake workshops in key tourism clusters, and hub locations, statewide to ensure that all products and services align with the Tasmanian brand;
• support regional tourism organisations as the principal means of managing and developing regional capability;
• continue the ongoing implementation of the visitor information development plans and tourism signage reforms in partnership with Local Government and the Department of Infrastructure, Energy and Resources;
• enhance research programs and forecasting tools with a particular emphasis on sustainable development, management of visitor product and regional analysis of visitor distribution and behaviour; and
• develop means to communicate learnings to industry and stakeholders. Tourism Distribution Services Tourism Tasmania will:
• build on access improvements generally by effectively distributing Tasmanian tourism products to the national and international travel trade;
• implement the new Customer Conversion Program to increase sales in the Launceston Customer Service Centre and the interstate retail centres; and
• continue to pursue strategies that make Tasmania an easier destination to sell, including continued expansion of the Inventory Management System (IMS), industry participation in the Australian Tourism Data Warehouse and IMS Nextnight, to ensure more effective global distribution of Tasmanian tourism products.
Chapter 17: Tourism, Parks, Heritage and the Arts 489 Events Tasmania Through Events Tasmania, the Department will:
• continue the development of the 10 year State Events Plan that builds on Tasmania's competitive advantages;
• undertake market research on events with potential to increase visitation in shoulder and non-peak seasons;
• through the Events Advisory Group, establish a framework to guide the shape and longer term planning needs of the events industry;
• work with the industry to develop the key elements of a memorable event experience to support the commercial viability of events;
• continue to collaborate with Local Government, industry bodies and the private sector to further develop partnerships to support events in Tasmania; and
• continue the support provided for AFL games in Tasmania.
Table 17.3: Performance Information – Output Group 1 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Total Visitor Expenditure $ million 712.0 945.3 1 130.0 1 190.0 Direct and indirect jobs generated from tourism and related industries1 Number 28 170 36 600 41 700 43 000 Domestic holiday visitors Number 187 600 263 800 320 000 348 000 International holiday visitors Number 71 500 79 300 84 100 89 100 Total holiday nights million 2.628 3.325 3.680 3.900 Holiday visitor expenditure $ million 492.9 665.4 770.0 830.0 Value of major events $ million 13 25 25 25
Note: 1. The methodology for calculating tourism jobs was revised during 2002-03 using Tourism Tasmania's Forecasting Model and the recently developed Tourism Satellite Account jointly developed by the Bureau of Tourism Research and the Australian Bureau of Statistics. The previous input/output model developed by the Centre for Regional Economic Analysis is no longer being updated, with the most recent revision date being 1998.
Performance Information Comments
Spirit of Tasmania I, II and III have contributed enormously to tourism to Tasmania through improved access to ferry services. Air services have also increased during this time.
The forecast to 30 June 2004 indicates that some 793 000 visitors will come to Tasmania, including 320 000 domestic holiday visitors and 84 100 international holiday visitors.
With the softening domestic economy and increased international competition, Tourism Tasmania estimates that by 30 June 2005, total visitors will grow to 810 000, including 348 000 domestic holiday visitors and 89 100 international visitors.
490 Chapter 17: Tourism, Parks, Heritage and the Arts Despite the softer outlook, since the launch of the fast ferry services across Bass Strait a significant tourism growth cycle for Tasmania has occurred with benefits felt across all sectors of the Tasmanian economy. This has occurred at a time when inbound travel to Australia has been in negative growth and domestic tourism has grown by less than one per cent. Over that same period since December 2000, scheduled air and sea services have delivered visitor growth to Tasmania of 36 per cent.
Visitor expenditure is expected to grow to $1.13 billion by June 2004 and $1.19 billion by June 2005, with holiday expenditure amounting to $770 million and $830 million respectively.
Over the same periods total jobs generated by tourism and related industries are forecast to grow to 41 700 and 43 000 respectively.
Output Group 2: Parks and Wildlife Management Description
The purpose of this Output Group is to create and maintain a representative and world-renowned reserve and park system that achieves the principal goal of conserving the State's natural and cultural heritage while providing for sustainable use and economic opportunities for the Tasmanian community.
Activities undertaken as part of this Output Group include:
• protecting the natural and cultural heritage within the parks and reserves, including fuel reduction burning programs;
• improving planning for parks and reserves;
• enhancing funding of infrastructure and maintenance to ensure visitor safety;
• better educating visitors about parks and reserves;
• adding value to the visitor experience in parks and reserves by providing necessary infrastructure and developing opportunities that will contribute to the growth of the Tasmanian economy; and
• providing high quality services to all visitors to enhance their enjoyment and appreciation of Tasmania's parks and reserves.
In protecting and managing almost 40 per cent of Tasmania's land area, this Output Group is a major player in tourism, Tasmania's fastest growing industry.
The Output Group contributes to the achievement of Tasmania Together Goal 10 - Acknowledge and respect the contribution that the Aboriginal community and its culture have made and continue to make to Tasmania and its identity; Goal 20 - Promote our island advantages including our 'clean, green' image, natural resources, location and people; Goal 21 - Value, protect and conserve our natural and cultural heritage; and Goal 24 - Ensure our natural resources are managed in a sustainable way now and for future generations.
Chapter 17: Tourism, Parks, Heritage and the Arts 491 Table 17.4: Summary Financial Information - Output Group 2 2003-04) 2004-05) Parks and Wildlife Management Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 18 379) 18 572) 1.1) Sales of Goods and Services 3 520) 3 500) (0.6) TOTAL 21 899) 22 072) 0.8)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 10 785) 11 262) 4.4) Other Employee Related Expenses 806) 809) 0.4) Superannuation 1 030) 1 075) 4.4 Depreciation and Amortisation1 6 901) 8 463) 22.6) Supplies and Consumables Maintenance and Property Services 1 049) 1 106) 5.4) Information Technology 53) 53) ....) Travel and Transport 1 010) 1 010) ....) Advertising and promotion 107) 107) ....) Other Supplies and Consumables2 7 346) 6 477 (11.8) TOTAL 29 087) 30 362) 4.4)
EXPENSE BY OUTPUT 2.1 Parks and Wildlife Management 29 087) 30 362) 4.4) TOTAL 29 087) 30 362) 4.4)
Notes: 1. The variance reflects increased depreciable infrastructure assets in National Parks. 2. The variance reflects reduced Commonwealth funded expenditure.
Major Issues and Initiatives for 2004-05
Major initiatives for this Output Group include:
• continuing to implement the Strategic Asset Management Plans for all major assets in parks and reserves;
• responding to the increased visitor numbers and the changing visitor profile by ensuring appropriate visitor facilities are available in Tasmania's national parks and reserves;
• progressing the remaining management plans for Tasmania's national parks and other reserves;
• continuing to implement the capital works program including Cradle Valley infrastructure;
• implementing continuous improvements in the delivery of all services provided by the Parks and Wildlife Service to ensure a targeted and responsive approach to business;
492 Chapter 17: Tourism, Parks, Heritage and the Arts • working closely with Local Governments to implement individual and regional Partnership agreements;
• developing and implementing a plan to strategically guide the future management, presentation and marketing of the Overland Track; and
• maintaining the level of fire reduction burning particularly in areas adjacent to freehold land and implementing the ecological burning program targeted at maintaining biodiversity in fire dependent ecosystems in the Tasmanian Wilderness World Heritage Area.
Table 17.5: Performance Information – Output Group 2 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Park satisfaction figures:1 Mt Field % rating ...... 90 Freycinet % rating ...... 90 Cradle Mountain % rating ...... 90 Hartz % rating 84 ...... 90 Narawntapu % rating 79 ...... 90 South Bruny % rating 49 ...... 90 Cockle Creek % rating 66 ...... 90 Number of reserves covered by Management Plans (TT)2 Number 46 51 60 77 Percentage of protected land covered by approved management plans (TT)2 % 67 69 72 72 Visitor numbers: Mt Field ('000) 134 142 150 157 Freycinet (entries) ('000) 273 300 330 346 Cradle Mountain ('000) 177 200 220 231 Lake St Clair ('000) 108 133 140 147 Gordon River ('000) 82 95 105 110 Mole Creek Caves ('000) 44 47 50 50
Notes: 1. Satisfaction ratings and attendance numbers are collated for major sites around the State via a four year rolling program. 2. (TT) denotes that this information is linked directly to a Tasmania Together benchmark.
Performance Information Comments
A key indicator of the effectiveness of parks and reserves management is the number of visitors and users of the parks and their level of satisfaction. Satisfaction ratings and attendance numbers are collated for the major sites around the State on a four year rolling program, with some of the State's parks due to be resurveyed in 2004-05. Visitors are surveyed on an individual basis, responding to questionnaires at the park or reserve. The 90 per cent satisfaction target for 2004-05 has been adopted from the United States of America Parks Service standards across parks.
Chapter 17: Tourism, Parks, Heritage and the Arts 493 Effective management of parks, reserves and public lands is undertaken through development of management plans. Under Tasmania Together, all reserves are to be covered by management plans by 2005. Management plans have been prepared for 53 reserves covering 70 per cent of the total reserve area. Plans for a further 24 reserves have been released for public comment and are awaiting finalisation. The Department will start a program to develop generic plans for each reserve category to meet this target during 2004-05.
Output Group 3: Heritage and the Arts Description Tasmanian Heritage Office The Tasmanian Heritage Office works to protect, conserve and promote Tasmania's historic heritage. Under the Historic Cultural Heritage Act 1995 and through the Tasmanian Heritage Council, the Tasmanian Heritage Office fulfils a key planning and regulatory role. The primary focus of the Tasmanian Heritage Office is the work undertaken in support of the Tasmanian Heritage Council and its work in partnership with the Department and the State Government on matters concerning historic heritage.
During 2004-05, the Government will be funding three initiatives identified as key priority areas in the Tasmanian Heritage Council's Strategic Plan. These initiatives are in the areas of: communications and education; heritage surveys and precincts; and increased support for the Heritage Conservation Funding Program.
The focus of the Tasmanian Heritage Office during 2004-05 will therefore be:
• the introduction of a communications and education program, which will enable the Tasmanian Heritage Office to better respond to the information and educational needs of Tasmanians, visitors and the heritage sector. This will also promote understanding of the value and importance of heritage, and support the sector's development;
• precinct development which will enable the Heritage Council to more strategically protect and manage larger heritage areas, such as suburban areas and historic towns, rather than individual heritage places or titles as is the case now;
• increased support for the Heritage Conservation Funding Program;
• work to protect, conserve and promote Tasmania's unique historic heritage;
• the maintenance of planning and regulatory programs under the Historic Cultural Heritage Act 1995;
• the provision of support to the Heritage Council and implementation of its new Strategic Plan; and
• assisting the Heritage Council with its review of the Historic Cultural Heritage Act 1995. Aboriginal Heritage Office The Aboriginal Heritage Office provides for the protection, sustainable management and promotion of Tasmania's Aboriginal heritage throughout the State.
The Aboriginal Heritage Office provides regulatory services under the Aboriginal Relics Act 1975, and project management and expert advisory services for the sustainable management of Aboriginal heritage across all land tenures.
494 Chapter 17: Tourism, Parks, Heritage and the Arts The Aboriginal Heritage Office is focusing on two key activities to achieve the sustainable management, conservation and promotion of the State's cultural heritage:
• supporting the creation of new Aboriginal Heritage legislation; and
• maintaining regulatory services under the Aboriginal Relics Act 1995. Arts Tasmania The activities of Arts Tasmania underpin the State Government's economic and social development policies through the development of cultural outcomes for Tasmanians. These include a focus on both social and economic outcomes from maximising the cultural assets of Tasmania and through the development of the arts industry. Activities undertaken include:
• advice on the formulation, development and implementation of arts policies;
• the promotion of participation in, and access to, a wide range of arts and cultural activities; and
• provision of financial assistance for the arts sector, museums and art galleries, the Tasmania Symphony Orchestra and the Ten Days on the Island festival.
Arts Tasmania has a dedicated business unit called arts@work that provides industry development services for the arts industry. Activities to be undertaken by arts@work include:
• the expansion of the Art for Public Buildings Scheme to the private sector;
• the provision of a centralised information and resources service to artists, developing links between artists, funding bodies, government departments and relevant corporations;
• developing project management and production skills in the arts sector with a view to boosting export opportunities and building export ready products; and
• the generation of employment opportunities for artists in the public and private sectors and across new industries, including cultural tourism. Tasmanian Museum and Art Gallery The Tasmanian Museum and Art Gallery maintains its collections to provide present and future generations with the opportunity to gain information and insight into their world. It achieves this goal by:
• providing an environment that both stimulates and educates the general public;
• collecting and conserving material evidence within the areas of humanities, including visual arts, history and anthropology, and the biological and physical sciences;
• undertaking research on the collections within the changing intellectual, social and environmental contexts; and
• interpreting and presenting its collections and research through diverse programs and publications, which provide the opportunity for public access and participation.
The activities of this Output Group link to Tasmania Together Goal 10 - Acknowledge and respect the contribution that the Aboriginal community and its culture have made and continue to make to Tasmania and its identity; Goal 11 – Have Tasmania recognised nationally and internationally for its innovation, pursuit of excellence and creativity in arts and culture; and Goal 21 – Value, protect and conserve our natural and cultural heritage.
Chapter 17: Tourism, Parks, Heritage and the Arts 495 Within the community, this Output Group also has a key role under Goal 9 - Foster an inclusive society that acknowledges and respects our multicultural heritage, values diversity and treats everyone with compassion and respect.
496 Chapter 17: Tourism, Parks, Heritage and the Arts Table 17.6: Summary Financial Information - Output Group 3 2003-04) 2004-05) Heritage and the Arts Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 10 502) 12 185) 16.0) Investment Income 40) 30) (25.0) Sales of Goods and Services 620) 620) ....) TOTAL 11 162) 12 835) 15.0)
OPERATING EXPENSES Employee Entitlements Salaries and Wages2 4 253) 4 938) 16.1) Other Employee Related Expenses2 324) 344) 6.2) Superannuation 516) 535) 3.7) Depreciation and Amortisation 22) 22) ....) Grants and Transfer Payments 3 928) 4 035) 2.7) Supplies and Consumables Maintenance and Property Services 538) 538) ....) Information Technology 94) 94) ....) Travel and Transport 207) 207) ....) Advertising and promotion 158) 158) ....) Other Supplies and Consumables3 1 493) 2 133) 42.9) TOTAL 11 533) 13 004) 12.8)
EXPENSE BY OUTPUT 3.1 Cultural Heritage Services4 2 140) 2 545) 18.9) 3.2 Tasmanian Museum and Art Gallery5 4 434) 5 485) 23.7) 3.3 Art Industry Development 4 959) 4 974) 0.3) TOTAL 11 533) 13 004) 12.8)
Notes: 1. The variance reflects additional funding for the Antarctic and Southern Oceans Exhibit, increased protection of Tasmania's historic heritage assets, the development of new Aboriginal Heritage legislation and additional funding for the State Service Wage Agreement. 2. The variance reflects funding for the State Service Wages Agreement and expenditure on the Antarctic and Southern Oceans Exhibit, increased protection of Tasmania's historic heritage assets and the development of new Aboriginal Heritage legislation. 3. The variance reflects expenditure on the Antarctic and Southern Oceans Exhibit, increased protection of Tasmania's historic heritage assets and the development of new Aboriginal Heritage legislation. 4. The variance reflects increased expenditure on the protection of Tasmania's historic heritage assets. 5. The variance reflects expenditure on the Antarctic and Southern Oceans Exhibit.
Chapter 17: Tourism, Parks, Heritage and the Arts 497 Major Issues and Initiatives for 2004-05
Major initiatives for this Output Group are to: Tasmanian Heritage Office • support the Tasmanian Heritage Council and implement its new Strategic Plan;
• instigate the development of a dedicated communications and education program;
• work to further enhance efforts in respect to heritage promotion and tourism;
• initiate and expand new supportive partnerships with Local Government;
• undertake local heritage surveys and develop heritage precincts;
• support heritage owners by continuing to provide Heritage Conservation Funding; Aboriginal Heritage Office • support the development of new legislation to conserve and protect Aboriginal heritage;
• develop an innovative Aboriginal heritage predictive model to increase the protection of Aboriginal heritage and sustainable development within the State;
• facilitate Aboriginal community involvement in the development of heritage management;
• deliver to the Parks and Wildlife Service a cultural heritage asset management system for Aboriginal heritage in the Tasmanian Wilderness World Heritage Area; Arts Tasmania • following an agreement between the State and Commonwealth Governments arising out of the Nugent Inquiry, allocate additional funds to the Tasmanian Symphony Orchestra to ensure its future viability. The State Government is also increasing its allocation to the Orchestra to ensure that the value of its financial contribution is maintained in real terms;
• provide increased funding to the Queen Victoria Museum and Art Gallery to ensure that the world-class facilities it operates are adequately funded into the future;
• undertake the second stage of the Tasmania Performs regional touring program which will introduce a statewide regional touring circuit developed to engage new audiences and develop Tasmanian productions for further interstate touring;
• start research on the publication of '25 Years of Public Art in Tasmania', detailing the legacy of the Art for Public Buildings Scheme, which was the first scheme of its type in Australia. There are now more than 800 works in public buildings statewide;
• continue Arts Tasmania's Tasmanian Bicentenary projects, which will include Reflections of Tasmania featuring Peter Conrad and other successful Tasmanian artists.
• build on the inaugural Living Artists' Week by extending it to regions strengthened by the new arts@work offices established in Burnie and Launceston;
• expand Young Designers' Month in 2005, following two very successful years, to continue to build the national and international profile of young Tasmanian designers;
• develop a strategic approach to securing private sector commissions for artworks;
498 Chapter 17: Tourism, Parks, Heritage and the Arts • develop an international residency program to bring Tasmania's landscape to the world through the eyes of internationally renowned artists, at the same time creating opportunities for Tasmanian artists to work overseas;
• bring together publishers and agents and Tasmanian writers with works ready for publishing and then promote those manuscripts to publishing houses throughout Australia. This project is being managed by arts@work in conjunction with the Tasmanian Writers' Centre;
• by the end of 2004, launch an on-line package, Creating Careers, for young people interested in pursuing arts professions. This project is being created by senior secondary students and is being undertaken in partnership with the Australia Council for the Arts and the Department of Education;
• following on from the launch of Respecting Cultures, the Aboriginal arts protocols guide, hold a series of workshops with Indigenous communities to assist in guiding the implementation of these protocols;
• provide further training opportunities to the arts and cultural sector through the promotion of Arts Train, a comprehensive on-line arts training course database;
• continue to lead Australia in the development of on-line arts funding services with the continued enhancement of on-line grant and loan acquittal reporting;
• continue the commitment to developing private sector support for the arts through an ongoing partnership with the Australian Business Arts Foundation; Tasmanian Museum and Art Gallery • facilitate the transfer and installation of heritage collections at the recently acquired National Archives buildings at Rosny;
• establish a world-class exhibition space at the Tasmanian Museum and Art Gallery, focussed on Tasmania's unique relationship with Antarctica and the Southern Ocean;
• undertake a feasibility study for a potential significant project on Hobart's waterfront, which would involve the development of a world-class cultural precinct;
• continue to extend public access to include the Commissariat store, which is a part of the Tasmanian Museum and Art Gallery’s significant suite of heritage buildings;
• continue the nation tour of the John Glover and the Colonial Picturesque art exhibition;
• continue to diversify and expand the range of public programs associated with temporary exhibitions and permanent collections;
• actively pursue opportunities to further develop partnerships with other government and private sector organisations to enhance the profile of the arts and sciences in Tasmania;
• continue to develop collaborative projects with arts@work that provide commercial opportunities for Tasmanian artists and craftspeople;
• maximise opportunities for financial diversification such as expansion of e-commerce facilities and the development of retail merchandise based on Tasmanian Museum and Art Gallery collections;
• maintain support initiatives for regional museums in Tasmania by facilitating professional development and collection management programs; and
Chapter 17: Tourism, Parks, Heritage and the Arts 499 • continue the curation, documentation and recording of the plant species held at the Herbarium, as part of the development of the publicly accessible Australian Virtual Herbarium.
Table 17.7: Performance Information – Output Group 3 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Recorded Aboriginal heritage sites actively managed % 5.86.0 6.3 6.0 Recorded historic heritage sites actively managed % 12.2 11.5 12.0 11.0 Participation in cultural activities Percentage of population n.a. 21 22 22 Attendance at cultural events Number ('000) n.a. 678 693 710 Contribution to GSP of selected cultural industries $ million 84 84 92 95 Employment in cultural industries Number n.a. 9 300 9 650 10 000 TMAG Total Visitors Number 134 060 199 479 255 000 257 000
Performance Information Comments Tasmanian Heritage Office Work has started on the development of clearly defined performance indicators for the Tasmanian Heritage Office, including the new Communication and Education Program and the Heritage Survey and Precinct Program. This will be particularly important given the development of the Tasmanian Heritage Council's new Strategic Plan and will be a major component of the Business Plan (2004-05 to 2005-06) linked to the new program structure of the Heritage Office. Work has also commenced on the development of a broad qualitative and quantitative data set in each program area, for reporting and management purposes. Aboriginal Heritage Office The effectiveness of the work undertaken by the Office is difficult to quantify in the short-term. One aspect of the effectiveness of Aboriginal heritage activities is indicated by the percentage of recorded sites actively managed. The conservation of Aboriginal heritage values involves many activities that would not be covered by the use of the active management concept, for instance gaining an understanding of Aboriginal values, engaging with the Aboriginal community, protecting relics from disturbance and administering permits under the Aboriginal Relics Act 1975. Arts Tasmania The performance information provided indicates the continuing and sustained growth in interest in the cultural activities in Tasmania and the increasing involvement by Tasmanians as practitioners and audiences.
500 Chapter 17: Tourism, Parks, Heritage and the Arts Tasmanian Museum and Art Gallery The growth in visitor numbers reflects the increasing emphasis being placed on making the Museum a place for the use and enjoyment of the public. In addition to the growing number of interstate and international visitors to Tasmania taking advantage of the facilities, there has also been significant growth in the number of Tasmanians participating in activities and viewing displays.
Administered Items Grants and Subsidies
Table 17.8 summarises the Grants and Subsidies paid by the Department of Tourism, Parks, Heritage and the Arts. A brief description of the payments follows the Table.
Table 17.8: Grants and Subsidies Financial Summary 2003-04 2004-05) Budget) Budget) Variation) $'000) $'000) %) REVENUE Revenue from Government Annual Appropriation1 3 768) 5 357) 42.1) TOTAL 3 768) 5 357) 42.1)
EXPENSES 10 Days on the Island2 400) 1 600) 300.0) Botanical Gardens - Government Contribution 2 007) 2 027) 0.9) Government Contribution to TSO3 251) 620) 147.0) Tasmanian Icon Program 1 000) 1 000) ....) Wellington Park Contribution 110) 110) ....) TOTAL 3 768) 5 357) 42.1)
Notes: 1. The variance reflects additional funding for the Tasmanian Symphony Orchestra in accordance with an agreement with the Commonwealth and additional funding for the 10 Days on the Island festival. 2. A total of $2.0 million has been provided for the 2005 Ten Days on the Island festival. The increase from 2003-04 to 2004-05 reflects the additional costs of organising the festival in 2004-05. 3. The variance reflects additional funding for the Tasmanian Symphony Orchestra.
Ten Days on the Island The State Government will continue to support Ten Days on the Island for the third festival. The 2003 festival attracted more than 100 000 people to events right across Tasmania from Strahan to St Marys, and Bruny Island to Bridport. In excess of 45 000 tickets were sold at ticketed events presented by Ten Days on the Island and other presenters in the program. International artists came from islands far afield, to join with the local arts community. Over 50 per cent of the program featured Tasmanian artists. 32 sponsors were secured for the event, which is a record for any cultural event in Tasmania. This item is linked to Output Group 3 - Heritage and the Arts.
Chapter 17: Tourism, Parks, Heritage and the Arts 501 Botanical Gardens - Government Contribution This payment represents the State Government's contribution towards the operation of the Royal Tasmanian Botanical Gardens. This contribution is linked to Output Group 3 - Heritage and the Arts. Further information can be obtained in Budget Paper No 2 Operations of Government Departments 2004-05, Chapter 19. Government Contribution to Tasmanian Symphony Orchestra Following an agreement between the State and Commonwealth Governments arising out of the Nugent Inquiry, additional funds have been provided for a Reserves Incentive Scheme to strengthen the financial position of the Tasmanian Symphony Orchestra. The State Government is also increasing its allocation to the Orchestra. This item is linked to Output Group 3 - Heritage and the Arts. Tasmanian Icons Program The program is designed to utilise world-class Tasmanian talent to promote the State both nationally and internationally. Currently, funded icons are the Tasmanian Symphony Orchestra, one of the best small orchestras in the world, and the State cricket team, the Tassie Tigers. This item is linked to Output Group 1 – Tourism and Output Group 3 - Heritage and the Arts. Wellington Park Contribution The allocation represents the State Government's contribution to the costs of administering the Wellington Park Management Authority. This item is linked to Output Group 2 – Parks and Wildlife Management.
502 Chapter 17: Tourism, Parks, Heritage and the Arts Revenue Collected on Behalf of the Consolidated Fund
Funds collected from fees and charges levied for services rendered and contributions from various sources for specific purposes are credited to the Consolidated Fund.
Table 17.9: Revenue Collected on Behalf of the Consolidated Fund 2004-05) 2004-05) Budget) Budget) Variation) $'000) $'000) %) REVENUE Grants1 4 300) 3 400) (21.0) Sales of Goods and Services 385) 385) ....) TOTAL REVENUE 4 685) 3 785) (19.3)
Transfers to the Consolidated Fund Commonwealth Recurrent Grants1 4 300) 3 400) (21.0) Parks and Wildlife Charges 385) 385) ....) TOTAL TRANSFERS TO THE CONSOLIDATED FUND 4 685) 3 785) (19.3)
Note: 1. The variation reflects reduced Commonwealth funding of Tasmanian Wilderness World Heritage Areas.
Chapter 17: Tourism, Parks, Heritage and the Arts 503 Capital Investment Program
Table 17.10: Capital Investment Program1 2004-05) Budget) $'000) Continuing Projects Building Services Maintenance 101) Port Arthur Historic Site - Conservation Program 2 000)
TOTAL CAPITAL INVESTMENT PROGRAM 2 101)
Note: 1. For more information regarding the Capital Investment Program, see Budget Paper No 1, Budget Overview 2004-05, Chapter 6.
Building Services Maintenance
Ongoing funding is provided to meet maintenance requirements including occupational health and safety issues and heritage requirements. Port Arthur Historic Site – Conservation Program
The Port Arthur Historic Site Conservation Plan was prepared in 2000. The Government committed $10.0 million, over five years, for the agreed conservation program. 2004-05 is the final year of the five year funding program.
504 Chapter 17: Tourism, Parks, Heritage and the Arts DETAILED BUDGET STATEMENTS
Table 17.11: Output Group Expense Summary for the Department of Tourism, Parks, Heritage and the Arts 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) Minister for Tourism, Parks and Heritage Output Group 1 - Tourism 1.1 Tourism Marketing 14 868) 15 344) 3.2) 1.2 Tourism Industry Development 5 186) 5 384) 3.8) 1.3 Tourism Distribution Services 10 652) 11 523) 8.2) 1.4 Major Events Support 2 717) 2 702) (0.6) 33 423) 34 953) 4.6) Output Group 2 - Parks and Wildlife Management 2.1 Parks and Wildlife Management 29 087) 30 362) 4.4) 29 087) 30 362) 4.4) Output Group 3 - Heritage and the Arts 3.1 Cultural Heritage Services1 2 140) 2 545) 18.9) 2 140) 2 545) 18.9)
Grants and Subsidies 3 117) 3 137) 0.6)
Other2 2 631) 2 101) (20.1) Minister for the Arts Output Group 3 - Heritage and the Arts 3.2 Tasmanian Museum and Art Gallery3 4 434) 5 485) 23.7) 3.3 Art Industry Development 4 959) 4 974) 0.3) 9 393) 10 459) 11.3)
Grants and Subsidies4 651) 2 220) 241.0)
TOTAL AGENCY 80 442) 85 777) 6.6)
Notes: 1. The variance reflects increased expenditure on the protection of Tasmania's historic heritage assets. 2. The variance represents Capital Investment Program funding carried forward from the Cradle Mountain Infrastructure project from 2002-03 to 2003-04. 3. The variance reflects expenditure on the Antarctic and Southern Oceans Exhibit. 4. The variance reflects the pattern of expenditure on the biennial 10 Days on the Island festival and additional funding for the Tasmanian Symphony Orchestra in accordance with an agreement with the Commonwealth.
Chapter 17: Tourism, Parks, Heritage and the Arts 505 Table 17.12: Statement of Financial Performance for the Department of Tourism, Parks, Heritage and the Arts 2003-04 2004-05 Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 57 421) 59 669) 3.9) Other 500) ....) (100.0) Investment Income 40) 30) (25.0) Sales of Goods and Services1 11 357) 12 120) 6.7) TOTAL 69 318) 71 819) 3.6)
OPERATING EXPENSES Employee Entitlements2 26 857) 28 533) 6.2) Superannuation 2 470) 2 555) 3.4 Depreciation and Amortisation3 7 005) 8 567) 22.2) Grants and Transfer Payments 9 498) 9 575) 0.8) Supplies and Consumables 31 044) 31 190) 0.5 Other Expenses ....) 400) ....) TOTAL 76 874) 80 820) 5.1)
NET OPERATING RESULT (7 556) (9 001) 19.1)
ADMINISTERED ITEMS
REVENUE Revenue from Government Annual Appropriation4 3 568) 4 957) 38.9) Grants5 4 300) 3 400) (21.0) Sales of Goods and Services 385) 385) ....) Other Revenue 1 318) ....) (100.0) TOTAL 9 571) 8 742) (8.7)
EXPENSES Grants and Subsidies Grants and Transfer Payments6 3 544) 4 485) 26.5) Supplies and Consumables 24) 24) ....) Other Expenses ....) 448) ....) Total Grants and Subsidies 3 568) 4 957) 38.9) Transfer to the Consolidated Fund5 4 685) 3 785) (19.3) TOTAL 8 253) 8 742) 5.9)
506 Chapter 17: Tourism, Parks, Heritage and the Arts Notes: 1. The variance reflects increased product sales by Tourism Tasmania. 2. The variance reflects funding for the State Service Wages Agreement and expenditure on the Antarctic and Southern Oceans Exhibit, increased protection of Tasmania's historic heritage assets and the development of new Aboriginal Heritage legislation. 3. The variance reflects increased depreciable infrastructure assets in National Parks. 4. The variance reflects additional funding for the Tasmanian Symphony Orchestra in accordance with an agreement with the Commonwealth and additional funding for the 10 Days on the Island festival. 5. The variation reflects reduced Commonwealth funding of Tasmanian Wilderness World Heritage Areas. 6. The variance reflects the pattern of expenditure on the biennial 10 Days on the Island festival.
Chapter 17: Tourism, Parks, Heritage and the Arts 507 Table 17.13: Statement of Financial Position as at 30 June for the Department of Tourism, Parks, Heritage and the Arts 2004 2005 Budget) Budget) Variation) $'000) $'000) %) CURRENT ASSETS Cash1 11 113) 6 513) (41.4) Receivables2 805) 1 402) 74.1) Investments 43) 100) 132.5 Prepayments 110) 102) (7.3) TOTAL 12 071) 8 117) (32.8)
NON-CURRENT ASSETS Investments 197) 190) (3.6) Land and Buildings3 213 668) 177 173) (17.1) Plant and Equipment 1 842) 1 934) 4.9) Infrastructure3 127 256) 63 686) (50.0) Other 17) 1 447) ....) TOTAL 342 980) 244 430) (28.8)
TOTAL ASSETS 355 051) 252 547) (28.9)
CURRENT LIABILITIES Payables4 1 414) 3 451) 144.0) Employee Entitlements5 2 889) 2 429) (16.0) Other 2 082) 2 100) 0.8) TOTAL 6 385) 7 980) 24.9)
NON-CURRENT LIABILITIES Employee Entitlements6 2 170) 4 640) 113.8) TOTAL 2 170) 4 640) 113.8)
TOTAL LIABILITIES 8 555) 12 620) 47.5)
NET ASSETS 346 496) 239 927) (30.8)
508 Chapter 17: Tourism, Parks, Heritage and the Arts Table 17.13: Statement of Financial Position as at 30 June for the Department of Tourism, Parks, Heritage and the Arts (continued) 2004 2005 Budget) Budget) Variation) $'000) $'000) % ADMINISTERED ITEMS
CURRENT ASSETS TOTAL ....) ....) ....)
NON-CURRENT ASSETS Equity Investments7 27 676) ....) (100.0) TOTAL 27 676) ....) (100.0)
TOTAL ASSETS 27 676) ....) (100.0)
CURRENT LIABILITIES TOTAL ....) ....) ....)
NON-CURRENT LIABILITIES TOTAL ....) ....) ....)
TOTAL LIABILITIES ....) ....) ....)
NET ASSETS 27 676) ....) (100.0)
Notes: 1. The variance is due to a reduction in Commonwealth funded programs and expenditure of brought forward balances. 2. The variance reflects the correction of an under-estimate of receivables for the 2003-04 Budget. 3. The variance reflects the write down of assets due to depreciation charges and a review of 2003-04 estimated values to reflect the Department's current financial position. 4. The variance reflects increased payables due to increased cost of goods sold by Tourism Tasmania. 5. The variation reflects reduced accrued salaries for 2004-05. 6. The variation reflects a review of 2003-04 estimated values to reflect the Department's current financial position. 7. The variance reflects the transfer of the equity value of the Investment in the TT Line Company Pty Ltd to Finance-General.
Chapter 17: Tourism, Parks, Heritage and the Arts 509 Table 17.14: Statement of Cash Flows for the Department of Tourism, Parks, Heritage and the Arts 2003-04 2004-05 Budget) Budget) Variation) $'000) $'000) %) CASH FLOWS FROM OPERATING ACTIVITIES Receipts Revenue from Government Appropriation 57 421) 59 669) 3.9) Interest Received 40) 30) (25.0) Sales of Goods and Services1 11 357) 12 120) 6.7) Payments Employee Entitlements2 (27 138) (28 729) 5.8) Superannuation (2 470) (2 555) 3.4 Grants and Transfer Payments (9 498) (9 575) 0.8) Supplies and Consumables (31 044) (31 190) 0.5 Other Payments ....) (400) ....) NET CASH FROM/(USED IN) OPERATING ACTIVITIES (1 332) (630) (52.8)
CASH FLOWS FROM INVESTING ACTIVITIES NET CASH FROM/(USED IN) INVESTING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held (1 332) (630) (52.8)
Cash at the Beginning of Reporting Period3 12 445) 7 143) (42.7)
Cash at the End of Reporting Period3 11 113) 6 513) (41.4)
510 Chapter 17: Tourism, Parks, Heritage and the Arts Table 17.14: Statement of Cash Flows for the Department of Tourism, Parks, Heritage and the Arts (continued) 2003-04 2004-05 Budget) Budget) Variation) $'000) $'000) %) ADMINISTERED ITEMS
CASH FLOWS FROM OPERATING ACTIVITIES Receipts Revenue from Government Appropriation4 3 568) 4 957) 38.9) Grants5 4 300) 3 400) (21.0) Sales of Goods and Services 385) 385) ....) GST Receipts 8 300) 8 300) ....) Payments Grants and Transfer Payments6 (3 544) (4 485) 26.5) Supplies and Consumables (24) (24) ....) Transfers to the Consolidated Fund5 (4 685) (3 785) (19.3) GST Payments (8 300) (8 300) ....) Other Payments ....) (448) ....) NET CASH FROM/(USED IN) OPERATING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM INVESTING ACTIVITIES NET CASH FROM/(USED IN) INVESTING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held ....) ....) ....)
Cash at the Beginning of Reporting Period ....) ....) ....)
Cash at the End of Reporting Period ....) ....) ....)
Notes: 1. The variance reflects increased product sales by Tourism Tasmania. 2. The variance reflects expenditure on the Antarctic and Southern Oceans Exhibit, increased protection of Tasmania's historic heritage assets and the development of new Aboriginal Heritage legislation. 3. The variation reflects a reduction in Commonwealth funded programs. 4. The variance reflects additional funding for the Tasmanian Symphony Orchestra in accordance with an agreement with the Commonwealth and additional funding for the 10 Days on the Island festival. 5. The variation reflects reduced Commonwealth funding of Tasmanian Wilderness World Heritage Areas. 6. The variance reflects additional funding for the Tasmanian Symphony Orchestra and the pattern of expenditure on the biennial 10 Days on the Island festival.
Chapter 17: Tourism, Parks, Heritage and the Arts 511 Table 17.15: Reconciliation of Operating Expenses to Consolidated Fund Appropriation 2003-04 2004-05 Budget Budget $'000 $'000
Total Operating Expenses 80 442) 85 777)
Adjustments for non-cash items Depreciation (7 005) (8 567) Employee Entitlements 281 196 Total Cash Cost of Outputs 73 718 77 406
Other funding sources (12 729) (12 780)
Total Consolidated Fund Appropriation 60 989) 64 626)
512 Chapter 17: Tourism, Parks, Heritage and the Arts 18 DEPARTMENT OF TREASURY AND FINANCE
AGENCY OUTLINE
The Department of Treasury and Finance is responsible for implementing strategies to achieve the Government's economic and financial objectives and is the central agency responsible for the management of Government resources.
The Department is responsible to the Treasurer and to the Minister for Finance. It provides the Government with objective advice on the economic and financial management of the State; implements Government policy; performs financial analysis, monitoring and reporting functions; and undertakes tax collection and a number of service, regulatory and compliance activities on behalf of the Government.
STRATEGIC FOCUS
The broad strategic focus of the Department is encapsulated in its mission, which is to help the Government improve the well being of Tasmanians by providing high quality advice and best practice financial, regulatory and revenue collection services and by providing leadership in economic and financial management.
In pursuing this mission, the Department also makes a major contribution to the achievement of the following major Government Outcomes:
• Tasmania Together;
− enhancing economic growth;
− improving the business operating environment; and
− securing a further credit rating upgrade;
• Partnership agreements;
− enhancing efficiency across State and Local Government through effective financial arrangements;
• Fiscal Strategy;
− sound management of the State's finances;
− achievement of Budget surpluses; and
− reduction in debt and liabilities;
Chapter 18: Treasury and Finance 513 • Industry Development Plan;
− major reform of the energy sector;
− maximising opportunities for employment through increased local content; and
− providing support and financial incentives for local industry.
KEY STRATEGIES
The Department of Treasury and Finance will pursue a number of strategies and provide a range of services to assist in the achievement of the above Outcomes, including:
• providing the Government with advice and information on economic, financial and commercial issues which impact on the State's economy;
• providing strategic leadership across the public sector in economic and financial reform;
• pursuing the review and reform of government regulation;
• providing input to Partnership agreements in relation to effective financial arrangements and progressing the reform of State-Local Government financial relations;
• developing and implementing the Government's reforms, policies and practices designed to improve the overall financial management of the public sector;
• pursuing a further rating upgrade for the State;
• ensuring responsible financial management within the public sector and strengthening the State's financial position by managing finances on a long-term sustainable basis consistent with the Government's Fiscal Strategy;
• ensuring effective management of the State's financial position by developing and managing the State Budget, managing whole-of-government accounting and reporting services and managing Commonwealth-State financial relations;
• monitoring and providing advice on the performance and management of government businesses;
• providing policy advice on issues associated with the State's entry into the National Electricity Market (NEM);
• contributing to the facilitation of project development and the strategic opportunities arising from the Natural Gas and Basslink infrastructure developments;
• assisting in the development and implementation of relevant energy policies in relation to market structure, competition and regulation of gas;
• developing and implementing government procurement activities and initiatives which seek to maximise opportunities for local business; and
• providing resources to regulatory bodies to enable legislative requirements to be efficiently and effectively carried out.
514 Chapter 18: Treasury and Finance 2004-05 MAJOR INITIATIVES
As part of the above key strategies, the Department of Treasury and Finance is implementing the following major initiatives:
• complete the major review of the Tasmanian Electricity Code (TEC), aligning the TEC with the National Electricity Code whilst maintaining jurisdiction specific arrangements that are appropriate to Tasmanian circumstances;
• assist in the implementation of relevant energy policies in relation to market structure, competition and regulation of gas;
• coordinate and implement the legislation and regulatory arrangements necessary to underpin Tasmania's participation in the National Electricity Market (NEM);
• provide strategic, legal and financial advice to assist the Government's objective to maximise the potential for future broadband telecommunications opportunities;
• provide ongoing advice to the Government on the links between energy reforms, the electricity businesses and the Fiscal Strategy;
• monitor the state of the Tasmanian economy and undertake research into significant economic issues;
• provide advice to the Government on the economic performance of the State's major industry sectors, focusing on those sectors important to the State's future economic development, as identified in the Government's Industry Development Plan;
• continue to implement the recommendations of the Report on the Review of the Output Methodology;
• develop and seek stakeholder support for a revised contemporary financial management legislative framework for the Tasmanian General Government Sector and State Authorities;
• develop accounting policies and provide advice to agencies in relation to the implementation of revised Australian Accounting Standards arising from the adoption of International Accounting Standards and harmonisation between the Australian Accounting Standards and Government Finance Statistics;
• develop an updated Liquor and Gaming Information System to enhance the processing of Liquor and Gaming licences and management of the licensing database; and
• replace the Department's Records Management System with a contemporary Electronic Document Management System to enable the efficient and effective capture of and access to its information.
Chapter 18: Treasury and Finance 515 SUMMARY AGENCY 2004-05 BUDGET INFORMATION
Financial Summary
Table 18.1: Summary Financial Information for the Department of Treasury and Finance 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 32 111) 32 804) 2.2) Other1 167) ....) (100.0) Other Revenue 10 124) 10 173) 0.5) TOTAL 42 402) 42 977) 1.4)
OPERATING EXPENSES Financial and Resource Management Services 10 262) 11 292) 10.0) Economic and Fiscal Policy Advice 6 812) 7 124) 4.6) Revenue and Regulatory Management Services 13 371) 13 524) 1.1) Community Assistance2 10 118) 11 475) 13.4) TOTAL 40 563) 43 415) 7.0)
NET OPERATING RESULT 1 839) (438) (123.8)
Notes: 1. The decrease represents a reduction in the amount of funds carried forward under section 8A(2) of the Public Account Act 1986. 2. Expenditure within Community Assistance is expected to increase as a result of a series of Community Support Levy initiatives being undertaken by the Department of Health and Human Services. Additional funding has also been provided for increased activity provided by The Public Trustee under their Community Service Obligation.
516 Chapter 18: Treasury and Finance DETAILED OUTPUT GROUP 2004-05 BUDGET INFORMATION
The individual Outputs of the Department of Treasury and Finance are provided under the following Output Groups:
Output Group 1: Financial and Resource Management Services;
Output Group 2: Economic and Fiscal Policy Advice;
Output Group 3: Revenue and Regulatory Management Services; and
Output Group 4: Community Assistance.
Output Group 1: Financial and Resource Management Services Description
The purpose of this Output Group is to ensure financial responsibility by managing public sector finances to assist the Government achieve its broader objectives. The focus of the Output Group is the provision of services to the Government related to Budget development and management, financial accounting, reporting and control, monitoring of the financial performance of agencies and government businesses and management of government contracts and government property. The Output Group also includes the provision of centralised management of selected key support services for the whole-of-government.
This Output Group directly contributes to the Agency Outcome – The Treasurer and Minister for Finance and other key stakeholders receive efficient and effective financial and resource management services.
Activities undertaken within this Output Group include:
• managing the State Budget process, providing policy advice on budgetary issues and monitoring financial performance and the Fiscal Strategy;
• undertaking whole-of-government financial management and providing advice on financial management and reform;
• administering the Tasmanian Risk Management Fund and providing support to agencies in the management of risk;
• providing a range of services relating to management of financial assets and borrowing and associated risk mitigation strategies, managing and providing information on the State Debt and ensuring appropriate submissions and presentations are made to the credit rating agencies;
• administering loans, grants, subsidies, concessions and guarantees to the public and other bodies;
• monitoring and providing advice on the performance and management of government businesses;
• developing and implementing the Government's reforms and policies relating to government businesses;
• administering government-owned office buildings and the disposal of surplus Crown property; and
Chapter 18: Treasury and Finance 517 • providing advice in relation to Government procurement activities and the administration of whole-of-government contracts.
Table 18.2: Summary Financial Information - Output Group 1 2003-04) 2004-05) Financial and Resource Management Services Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation1 6 918) 7 665) 10.8) Other2 17) ....) (100.0) Sales of Goods and Services 1 579) 1 594) 0.9) Proceeds from the Disposal of Assets 2 000) 2 000) ....) TOTAL 10 514) 11 259) 7.1)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 5 487) 5 652) 3.0) Other Employee Related Expenses 462) 469) 1.5) Superannuation 641) 653) 1.9) Depreciation and Amortisation 74) 75) 1.4) Supplies and Consumables Consultants3 414) 835) 101.7) Maintenance and Property Services4 584) 789) 35.1) Communications 108) 118) 9.3) Information Technology 668) 699) 4.6) Travel and Transport 142) 156) 9.9) Advertising and Promotion 49) 53) 8.2) Other Supplies and Consumables 1 633) 1 793) 9.8) TOTAL 10 262) 11 292) 10.0)
EXPENSE BY OUTPUT 1.1 Budget Development and Management5 1 839) 2 103) 14.4) 1.2 Financial Management and Accounting Services6 2 407) 2 797) 16.2) 1.3 Shareholder Advice on Government Businesses 1 408) 1 520) 8.0) 1.4 Government Property and Accommodation Services 2 685) 2 823) 5.1) 1.5 Government Procurement Services 1 923) 2 049) 6.6) TOTAL 10 262) 11 292) 10.0)
Notes: 1. The increase in the Annual Appropriation reflects an internal reallocation of resources in order to develop accounting policies and provide advice to agencies in relation to the implementation of revised Australian Accounting Standards arising from the adoption of International Accounting Standards and harmonisation between Australian Accounting Standards and Government Finance Statistics. 2. The decrease represents a reduction in the amount of funds carried forward under section 8A(2) of the Public Account Act 1986.
518 Chapter 18: Treasury and Finance 3. The increase in Consultants expenditure is associated with the divestment of Henty House and site investigations and separation of essential services at the Heritage Square site and implementation of the revised Australian Accounting Standards project arising from the adoption of International Accounting Standards, and harmonisation between Australian Accounting Standards and Government Finance Statistics. 4. The increase in Maintenance and Property Services expenditure has resulted primarily from the requirement that the Department commence to pay Local Government rates on government-owned buildings. 5. The increase in the Budget Development and Management Output has resulted from an internal reallocation of resources in order to improve the resourcing associated with a number of Budget management tasks and advice provided to the Treasurer. 6. The increase in the Financial Management and Accounting Services Output reflects an increase in expenditure associated with monitoring the implementation and providing advice to agencies on the revised Australian Accounting Standards arising from the adoption of International Accounting Standards and harmonisation between Australian Accounting Standards and Government Finance Statistics.
Major Issues and Initiatives for 2004-05
The major issues and initiatives for 2004-05 in relation to the Output Group will be to:
• further enhance the Corporate Governance Framework for the government business sector, by implementing the non-legislative recommendations of the review of the Government Business Enterprises Act 1995, implementing an induction program for government business directors and revising the Corporate Governance Handbook;
• develop accounting policies and provide advice to agencies in relation to the implementation of revised Australian Accounting Standards arising from the adoption of International Accounting Standards and harmonisation between the Australian Accounting Standards and Government Finance Statistics;
• develop and seek stakeholder support for a revised contemporary financial management legislative framework for the Tasmanian General Government Sector and State Authorities;
• provide ongoing support to the Heads of Treasuries Accounting and Reporting Advisory Committee (HoTARAC) in its consideration of major accounting and public finance reporting issues, particularly in relation to harmonisation between the Australian Accounting Standards applicable to the public sector, and Government Finance Statistics;
• continue to implement the Government's Divestment Strategy by monitoring the sale of the non-core assets of the Hobart Ports Corporation Pty Ltd and improving shareholder advice to Government;
• finalise and implement the recommendations of a review of whole-of-government and agency reporting against best practice;
• work with agencies through the Tasmanian Risk Management Fund to further improve the management of risk;
• continue the delivery of the comprehensive Education and Training Program and develop additional modules to support the Government's Financial Management Reform Strategy;
• develop a consolidation system which interfaces with the Integrated Budget Management and Financial Reporting System (BMFRS) to enable efficient consolidation and reporting of all sectors on both Uniform Presentation Framework and Australian Accounting Standards bases;
• progress the development of a common agency financial management information system;
• implement the recommendations of the Report on the Review of the Output Methodology;
• review the Strategic Asset Management framework applicable to all agencies;
Chapter 18: Treasury and Finance 519 • continue the ongoing implementation of the Office Accommodation and Property Services Strategic Plan, with particular regard to the divestment of surplus and non-strategic government-owned office accommodation;
• review and renew major strategic whole-of-government contracts;
• review the suite of publications of the Public Works Tender Board in relation to building and construction procurement to ensure that they are concise, up to date and readily accessible by agencies;
• continue to identify and implement strategies to enhance the capacity of Tasmania's small-to-medium enterprises to competitively bid for the supply of goods and services to government; and
• continue to support government buyers through the provision of ongoing training, support and information through the purchasing.tas website.
Table 18.3: Performance Information – Output Group 1 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Proportion of financial reports receiving an unqualified audit opinion1 % 100 100 100 100 Stakeholder satisfaction rating of the quality of services (expressed as a percentage)2 % 71 75 >80 >80 Treasury-managed property vacancy rate3 % 2.8 2.8 <4.0 <4.0 State Service workers' compensation contributions as a percentage of the average premium charged by private insurers4 % 56 50 <55 <55 Proportion of financial reports published by the required date5 % 100 100 100 100 Variance between Budget estimate and actual Fiscal Balance 6 % n.a. 273.0 >0.0 >0.0 Variance between Budget estimate and actual GBE/SOC returns7 % 2.6 2.9 <5.0 <5.0
Notes: 1. An unqualified audit opinion from the Auditor-General indicates that the financial reports are a true and accurate reflection of the Government's finances. The financial reports that receive an audit opinion are the Consolidated Financial Statements for the State of Tasmania and the Treasurer's Annual Report. The Treasurer's Annual Report has a number of sections, of which two sections, the Budget Outcomes section and the Public Accounts Statements, will be subject to audit. 2. The satisfaction rating is obtained from the results of the Department's Stakeholder Survey in relation to the quality and appropriateness of advice and accessibility and responsiveness of officers in the Budget and Finance Division. 3. The vacancy rate is the proportion of all owned and leased office space managed by the Department that is currently vacant and suitable for occupation. The target rate has been set at a considerably lower level than the estimated private sector vacancy rate for the Hobart Central Business District (CBD), which is estimated to be in excess of 12 per cent. 4. The Tasmanian Risk Management Fund, which is managed by the Department, includes a self-insurance scheme for the workers' compensation liabilities of participating agencies. An indication of the relative efficiency of the Fund can be obtained by comparing the workers' compensation contributions paid by agencies to the Fund with the workers' compensation premiums charged by private insurers. The measure is calculated by comparing average agency workers' compensation contributions, as a proportion of salaries, with the contribution rate of private insurers.
520 Chapter 18: Treasury and Finance 5. The financial reports published each year include: the Annual Financial Report; the Preliminary Outcomes Report; the Mid-Year Financial Report and the Consolidated Financial Statements for the State of Tasmania. 6. In assisting the Government to develop and manage the State's Budget, the Department seeks to accurately estimate and then achieve the overall end-of-year Budget outcome. The target is to maintain the situation where the actual Fiscal Surplus is either achieved or exceeded. 7. The accuracy of total consolidated returns to the State from Government businesses, which consists of dividends, income tax equivalents and guarantee fees, can be determined by comparing the Budget estimate with the actual end of year result.
Output Group 2: Economic and Fiscal Policy Advice Description
The purpose of this Output Group is to provide high quality policy advice on economic and fiscal issues with the focus on improving Tasmania's economy and business environment.
This Output Group directly contributes to the Agency Outcome – The Government receives sound and timely economic and fiscal policy advice.
Activities undertaken within this Output Group include:
• maintaining and publishing annually a Competition Index to provide an objective assessment of the competitiveness of Tasmania as a business location relative to the other states of Australia. The Competition Index highlights those areas in which Tasmania has a competitive advantage or disadvantage as a location for business. This assists the Government in identifying how it might best focus industry policy;
• providing advice to the Government on:
− the state of Tasmanian economic conditions and in relation to movements in key international, national and local economic statistics;
− the performance of the principal industry sectors in the Tasmanian economy;
− the progress of economic reform initiatives, including implementation of National Competition Policy (NCP);
− progress with the State's entry into the National Electricity Market (NEM);
− State revenue policy issues, including the impact of taxation measures;
− Commonwealth-State and State-Local Government financial relations;
− public sector superannuation matters, including ensuring compliance with all relevant Commonwealth legislation; and
− the regulation and taxation of gaming activities, and licensing of accommodation and liquor sales; and
• administering regulatory reform initiatives, including administration of the Subordinate Legislation Act 1992, the Legislation Review Program and mutual recognition arrangements.
Chapter 18: Treasury and Finance 521 Table 18.4: Summary Financial Information - Output Group 2 2003-04) 2004-05) Economic and Fiscal Policy Advice Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 6 691) 6 815) 1.9) Other1 11) ....) (100.0) Sales of Goods and Services 241) 236) (2.1) TOTAL 6 943) 7 051) 1.6)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 4 134) 4 215) 2.0) Other Employee Related Expenses 310) 311) 0.3) Superannuation 434) 436) 0.5) Depreciation and Amortisation 45) 46) 2.2) Supplies and Consumables Consultants 823) 903) 9.7) Maintenance and Property Services2 348) 434) 24.7) Communications 77) 84) 9.1) Information Technology 296) 318) 7.4) Travel and Transport 144) 158) 9.7) Advertising and Promotion 2) 2) ....) Other Supplies and Consumables 199) 217) 9.0) TOTAL 6 812) 7 124) 4.6)
EXPENSE BY OUTPUT 2.1 Economic Policy Advice 2 648) 2 728) 3.0) 2.2 Fiscal Policy and Regulatory Advice 2 498) 2 609) 4.4) 2.3 Energy Reform 1 666) 1 787) 7.3) TOTAL 6 812) 7 124) 4.6)
Notes: 1. The decrease represents a reduction in the amount of funds carried forward under section 8A(2) of the Public Account Act 1986. 2. The increase in Maintenance and Property Services expenditure has resulted from the requirement that the Department commence to pay Local Government rates on government-owned buildings, together with an internal reorganisation of departmental accommodation.
522 Chapter 18: Treasury and Finance Major Issues and Initiatives for 2004-05
During 2004-05, major initiatives undertaken will be to:
• continue to coordinate and implement the legislative and regulatory arrangements necessary to underpin Tasmania's participation in the National Electricity Market (NEM);
• provide advice to the Government on the links between energy reforms, the electricity businesses and the Fiscal Strategy;
• continue to assist in the implementation of relevant energy policies in relation to market structure, competition and regulation of gas;
• continue to provide strategic, legal and financial advice to assist the Government's objective to maximise future broadband telecommunications opportunities;
• provide advice on the state of the Tasmanian economy, including forecasting key economic indicators and undertake research into significant economic issues;
• provide ongoing advice to the Government on the economic performance of the State's major industry sectors, focusing on those sectors important to the State's future economic development, as identified in the Government's Industry Development Plan;
• provide ongoing input into the negotiation of major Commonwealth Specific Purpose Payments (SPPs);
• provide advice on economic reform initiatives, including the preparation of submissions to enquiries and forums, and the preparation of economic policy advice to the Government;
• continue to ensure the State's compliance with its National Competition Policy obligations, including the Government's Legislation Review Program;
• provide support to the State Grants Commission in its review of the methodology for distributing financial assistance grants between councils;
• continue to engage, with other States and Territories, the Commonwealth in debate in relation to the reform of SPPs and indirect taxes; and
• progress the Government's decision to amend the Liquor and Accommodation Act 1990 to remove the accommodation licensing provisions.
Chapter 18: Treasury and Finance 523 Table 18.5: Performance Information – Output Group 2 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Proportion of National Competition Policy payments received for which Tasmania is eligible1 % 100 95 100 100 Stakeholder satisfaction rating of the quality of services2 % 78 79 >85 >85 Variance between Budget estimate and actual taxation receipts3 % 9.2 14.7 <5.0 <5.0 Variance between Budget estimate and actual Commonwealth payments4 % 3.2 3.6 <5.0 <5.0 Ranking of the accuracy of Tasmanian tax forecasts
5 compared with other states and territories Ranking 4 7 >4 out of 8 >4 out of 8 Number of annual Budget economic forecasts more accurate than industry benchmark forecasts6 Number 5 3 >3 out of 7 >3 out of 7
Notes: 1. The receipt of National Competition Policy (NCP) payments is dependent upon a favourable assessment by the National Competition Council (NCC) of Tasmania's continuing progress in the implementation of NCP. Tasmania is eligible for the full share of the 2003-04 payments. While the target for 2002-03 was 100 per cent, Tasmania has only received 95 per cent of the payment, as there was a deduction of approximately $900 000 as a suspended penalty. It is expected that some (or perhaps all) of this suspension will be lifted following the NCC's 2004 assessment. 2. The satisfaction rating is obtained from the results of the Department's Stakeholder Survey in relation to the quality and appropriateness of advice and accessibility and responsiveness of officers in the Economic and Financial Policy Division. 3. The accuracy of the Department's taxation receipt forecasts can be determined by comparing the Budget estimate with the actual end of year outcome. It should be noted in relation to the taxation receipt forecasts that abnormal receipts that could not be reasonably anticipated at the time of the Budget estimate, such as large one-off transactions that result in large amounts of stamp duty, are excluded when calculating the outcome. The actual variance for 2002-03 largely reflects the impact on taxation receipts of an unexpected surge in activity levels in the residential property market, in combination with strong growth in property values across the residential and commercial sectors. 4. The accuracy of the Department's Commonwealth payments forecasts can be determined by comparing the Budget estimate with the actual end of year outcome. 5. This measure provides an indication of the quality of taxation forecasts by comparing the accuracy of the Department's estimates with the accuracy of estimates developed by other State and Territory Treasuries. The target is for Tasmania to be ranked in the top half of all jurisdictions. 6. The quality of the economic forecasts can be determined by comparing the accuracy of the Department's estimates with the accuracy of industry benchmark forecasts developed by a number of independent economic forecasters that prepare relevant forecasts of the Tasmanian Economy. The target is for over half of the Department's estimates to be more accurate than industry benchmark forecasts.
524 Chapter 18: Treasury and Finance Output Group 3: Revenue and Regulatory Management Services Description
The purpose of this Output Group is to manage taxation revenue collection and certain regulatory services to assist the Government achieve its broader objectives. The focus is on the provision of taxation revenue services to ensure the efficient collection of revenue to fund Government services, to regulate and control gaming and to regulate and administer liquor and accommodation licensing.
This Output Group directly contributes to the Agency Outcome – Statutory bodies receive high quality regulatory and revenue management services.
Activities undertaken within this Output Group include:
• administering taxation legislation and the associated collection of state revenue. This includes monitoring the compliance of taxpayers with state revenue legislation;
• regulating and controlling casino gaming, gaming machines, Internet gaming, Keno and minor gaming and sports betting operations and the administration of gaming legislation, including providing support for the Tasmanian Gaming Commission in the exercise of its statutory functions under the Gaming Control Act 1993;
• regulating and administering liquor and accommodation licensing and providing support to the Commissioner for Licensing and the Licensing Board of Tasmania to enable their statutory functions to be performed in accordance with the Liquor and Accommodation Act 1990; and
• providing support to the Tasmanian Energy Regulator and Government Prices Oversight Commission in the exercise of their statutory functions, which include the regulation of the electricity and gas industries and the conduct of independent pricing reviews and consultancies on behalf of Government.
Chapter 18: Treasury and Finance 525 Table 18.6: Summary Financial Information - Output Group 3 2003-04) 2004-05) Revenue and Regulatory Management Services Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 11 648) 11 313) (2.9) Other1 139) ....) (100.0) Sales of Goods and Services 1 867) 1 857) (0.5) TOTAL 13 654) 13 170) (3.5)
OPERATING EXPENSES Employee Entitlements Salaries and Wages 8 074) 8 237) 2.0) Other Employee Related Expenses 518) 547) 5.6) Superannuation 910) 920) 1.1) Depreciation and Amortisation 119) 122) 2.5) Supplies and Consumables Consultants 350) 322) (8.0) Maintenance and Property Services 856) 911) 6.4) Communications 308) 307) (0.3) Information Technology 761) 775) 1.8) Travel and Transport 394) 365) (7.4) Advertising and Promotion 21) 19) (9.5) Other Supplies and Consumables 1 060) 999) (5.8) TOTAL 13 371) 13 524) 1.1)
EXPENSE BY OUTPUT 3.1 Tax Administration and Revenue Collection 6 177) 6 436) 4.2) 3.2 Regulation and Administration of Liquor and Gaming 5 157) 5 108) (1.0) 3.3 Government Prices Oversight and Energy Regulation2 2 037) 1 980) (2.8) TOTAL 13 371) 13 524) 1.1)
Notes: 2. The decrease represents a reduction in the amount of funds carried forward under section 8A(2) of the Public Account Act 1986. 3. The decrease in the Government Prices Oversight and Energy Regulation Output has resulted from the Government decision to cease petrol price monitoring.
526 Chapter 18: Treasury and Finance Major Issues and Initiatives for 2004-05
The major issues and initiatives for 2004-05 in relation to this Output Group include the:
• progression towards national consistency in energy regulatory arrangements;
• completion of the major review of the Tasmanian Electricity Code (TEC), aligning the TEC with the National Electricity Code whilst maintaining residual Tasmanian arrangements that are appropriate to Tasmanian circumstances;
• completion of the implementation of decisions by the Government arising from the National Competition Policy Review of the Liquor and Accommodation Act 1990;
• implement annual fees for Liquor licences to better reflect the cost of providing services;
• ongoing development of socially responsible frameworks for gaming, including national regulatory responses to responsible gambling issues;
• continued monitoring of Local Council compliance with urban water pricing guidelines as required under National Competition Policy;
• provision of support to the Energy Regulator in undertaking those statutory duties required to facilitate transition to the National Electricity Market;
• continued promotion of self assessment and the use of the Internet based lodgement system, Tasmanian Revenue Online to maximise opportunities for electronic transactions with clients and, in particular, facilitate payments, lodgement of returns and the provision of client education information products through electronic means;
• continued oversight of the operation of the Community Support Levy to ensure the most effective use of funds in accordance with the Gaming Control Act 1993;
• redesign of the State Revenue Office web site to provide greater accessibility to information for taxpayers and their representatives;
• development of a subscription based e-mail service to be used as the primary distribution mechanism for State Taxation information, replacing existing paper and spreadsheet mailing lists;
• undertaking of a process review of the duty assessment system. The review will take into account the changes resulting from increased self assessment of duty;
• implementation of the State and Local Government Financial Reform changes that impact on Land tax;
• ongoing development of the Responsible Serving of Alcohol program; and
• development of an updated Liquor and Gaming Information System designed to enhance existing systems used for the processing of Liquor and Gaming licences.
Chapter 18: Treasury and Finance 527 Table 18.7: Performance Information – Output Group 3 Unit of 2001-02 2002-03 2003-04 2004-05 Performance Measure measure Actual Actual Target Target
Total overdue taxation debt as a percentage of total taxation revenue1 % 0.7 0.7 <0.8 <0.8 Percentage of formal recommendations accepted by the Tasmanian Gaming Commission2 % 83.0 87.9 >80.0 >80.0 Percentage of objections in which the Commissioner of State Revenue's assessment or decision was confirmed3 % 70 68 >80 >80 Revenue Branch operating expenses as a percentage of taxation revenue4 % 1.4 1.4 <1.5 <1.5 Percentage of liquor applications submitted to a hearing before the Licensing Board within 40 days of receipt5 % 80 87 >75 >75
Notes: 1. In providing revenue management services to the Commissioner of State Revenue, the Department seeks to ensure that revenue is collected in a timely manner and that overdue taxation debts are minimised. Accordingly, the target is for overdue taxation debt to be a very small percentage of total taxation revenue. 2. Staff of the Department provide advice and support to the Tasmanian Gaming Commission (TGC). While recognising that the TGC is an independent statutory body, a measure of the quality of the services provided is the proportion of all formal recommendations contained in decision papers that are accepted by the TGC. The figures for 2001-02 are based on the figures from the Commission meetings held from March to June 2002. 3. The Commissioner of State Revenue is assisted by staff of the Department to make assessments and decisions in relation to land tax, duties and payroll tax and decide First Home Owner Grant applications. Objections may be lodged against assessments issued to clients or decisions of the Commissioner, Deputy Commissioner or a delegate of the Commissioner. In providing this assistance, the Department seeks to ensure that the original assessments and decisions are accurate and that the number of successful objections to these are minimised. Accordingly, the target is for over 80 per cent of objections to result in the original assessment as being confirmed as accurate. The performance measure was not met in 2002-03. This is due to the fact that in a number of cases additional information was provided by the objector at the objection stage, resulting in the over-turning of the original decision. 4. An indication of the efficiency of the revenue management services provided by the Department can be gained by comparing total taxation revenue collected with the operating costs required to administer and collect that revenue. The target is for these costs to be kept to a very small proportion of revenue collected. 5. The Department assists the Licensing Board of Tasmania by receiving applications for licenses, undertaking investigations on behalf of the Commissioner for Licensing and providing recommendations to the Board on whether the applicant is fit and proper in accordance with the requirements of the Liquor and Accommodation Act 1990. The measure relates to the time taken by the Department to undertake its investigations and prepare submissions for the monthly Board meetings.
528 Chapter 18: Treasury and Finance Output Group 4: Community Assistance Description
The purpose of this Output Group is to provide targeted community support and subsidised assistance to various segments of the community. The focus is on Government Community Service Obligations.
Activities undertaken within this Output Group are:
• payment of the Community Service Obligation (CSO) in relation to the subsidised supply of electricity to Bass Strait Islands customers and the provision of concessions to pensioner customers on the Bass Strait Islands;
• payment of the CSO to The Public Trustee. The CSO has been extended for one year with a new three year agreement commencing 1 July 2004 currently being finalised. The CSO funds are applied in the administration of:
− Absolute Estates with a gross asset value of less than $60 000;
− Continuing Trust and Life Tenancy Estates with a gross asset value of less than $100 000;
− Minor Trusts with a gross asset value of less than $20 000; and
− assets for Represented Persons with a gross asset value of less than $100 000;
• the collection of funds, through the Department's Revenue, Gaming and Licensing Division, for the Community Support Levy. The Department of Health and Human Services provides administrative support for grant programs for the provision of services to compulsive gamblers and for the benefit of charitable organisations, delivers community education on gambling matters and funds activities in the category of other health services. The Department of Economic Development provides administrative support for the grant programs for sport and recreation organisations. The levy is distributed as follows:
− 50 per cent for research; services for the prevention of compulsive gambling; treatment or rehabilitation of compulsive gamblers; and community education and other health services;
− 25 per cent for the benefit of charitable organisations; and
− 25 per cent for sport and recreation organisations;
• payment of an annual contribution to the Anzac Day Trust in accordance with the provisions of the Anzac Day Observance Act 1929. The funds are disbursed by the Trust to returned services organisations to assist in providing welfare benefits for their members and families; and
• payment to the Royal Society of Tasmania to assist with the printing of papers.
Chapter 18: Treasury and Finance 529 Table 18.8: Summary Financial Information - Output Group 4 2003-04) 2004-05) Community Assistance Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 6 854) 7 011) 2.3) Sales of Goods and Services 4 437) 4 486) 1.1) TOTAL 11 291) 11 497) 1.8)
OPERATING EXPENSES Grants and Transfer Payments1 10 118) 11 475) 13.4) TOTAL 10 118) 11 475) 13.4)
EXPENSE BY OUTPUT 4.1 Bass Strait Islands Community Service Obligation 6 170) 6 170) ....) 4.2 Public Trustee Community Service Obligation2 666) 820) 23.1) 4.3 Community Support Levy3 3 264) 4 464) 36.8) 4.4 Anzac Day Trust and Royal Society Papers4 18) 21) 16.7) TOTAL 10 118) 11 475) 13.4)
Notes: 1. The increase in Grants and Transfer Payments relates to the additional costs associated with The Public Trustee Community Service Obligation (CSO) and the Community Support Levy. 2. The increase in The Public Trustee CSO funding has been provided for increased activity provided by The Public Trustee under their CSO. The current CSO agreement has been extended for one year to 30 June 2004. A new three year agreement commencing 1 July 2004 is currently being finalised. 3. The increase in the Community Support Levy expenditure relates to a number of Community Support Levy initiatives being progressed by the Department of Health and Human Services which will produce a full year effect in 2004-05. 4. The increase in the Anzac Day Trust and Royal Society Papers relates to an increase in funding for the Anzac Day Trust as a result of indexation.
530 Chapter 18: Treasury and Finance Administered Items Revenue Collected on Behalf of the Consolidated Fund
Major fees collected by the Department, which are transferred to the Consolidated Fund, relate to the activities of the Commissioner for Licensing in relation to applications and transfers of Liquor licences for hotels, clubs, restaurants etc and the applications, transfers and renewals of licences for tourist accommodation establishments. Fees are also charged for liquor permits for events, functions, sporting clubs and to authorise trading between 12 midnight and 5.00 am.
In order to better reflect the cost of providing services, the Government has determined that some of the fees associated with Liquor licences will increase during 2004-05.
Table 18.9 summarises the Revenue collected on behalf of the Consolidated Fund by the Department of Treasury and Finance.
Table 18.9: Revenue Collected on Behalf of the Consolidated Fund 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) REVENUE Sales of Goods and Services1 339) 512) 51.0) TOTAL REVENUE 339) 512) 51.0)
Transfers to the Consolidated Fund Other Sales of Services 339) 512) 51.0) TOTAL TRANSFERS TO THE CONSOLIDATED FUND 339) 512) 51.0)
Note: 1. The increase represents additional Liquor Licence fees to better reflect the cost of providing services.
Chapter 18: Treasury and Finance 531 DETAILED BUDGET STATEMENTS
Table 18.10: Output Group Expense Summary for the Department of Treasury and Finance 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) Treasurer Output Group 1 - Financial and Resource Management Services 1.1 Budget Development and Management1 1 839) 2 103) 14.4) 1.2 Financial Management and Accounting Services2 2 407) 2 797) 16.2) 1.3 Shareholder Advice on Government Businesses 1 408) 1 520) 8.0) 5 654) 6 420) 13.5) Output Group 2 - Economic and Fiscal Policy Advice 2.1 Economic Policy Advice 2 648) 2 728) 3.0) 2.2 Fiscal Policy and Regulatory Advice 2 498) 2 609) 4.4) 2.3 Energy Reform 1 666) 1 787) 7.3) 6 812) 7 124) 4.6) Output Group 3 - Revenue and Regulatory Management Services 3.1 Tax Administration and Revenue Collection 6 177) 6 436) 4.2) 6 177) 6 436) 4.2) Output Group 4 - Community Assistance 4.1 Bass Strait Islands Community Service Obligation 6 170) 6 170) ....) 4.2 Public Trustee Community Service Obligation3 666) 820) 23.1) 4.3 Community Support Levy4 3 264) 4 464) 36.8) 4.4 Payment to Anzac Day Trust and Royal Society Papers5 18) 21) 16.7) 10 118) 11 475) 13.4)
Minister for Finance Output Group 1 - Financial and Resource Management Services 1.4 Government Property and Accommodation Services 2 685) 2 823) 5.1) 1.5 Government Procurement Services 1 923) 2 049) 6.6) 4 608) 4 872) 5.7) Output Group 3 - Revenue and Regulatory Management Services 3.2 Regulation and Administration of Liquor and Gaming 5 157) 5 108) (1.0) 3.3 Government Prices Oversight and Energy Regulation 2 037) 1 980) (2.8) 7 194) 7 088) (1.5)
TOTAL AGENCY 40 563) 43 415) 7.0)
Notes: 1. The increase in Budget Development and Management has resulted from an internal reallocation of resources in order to improve the resourcing associated with a number of Budget management tasks and advice provided to the Treasurer.
532 Chapter 18: Treasury and Finance 2. The increase in Financial Management and Accounting Services reflects an increase in expenditure associated with the implementation of revised Australian Accounting Standards arising from the adoption of International Accounting Standards and harmonisation between Australian Accounting Standards and Government Finance Statistics. 3. The increase in The Public Trustee Community Service Obligation (CSO) funding has been provided for increased activity provided by The Public Trustee under their CSO. The current CSO agreement has been extended for one year to 30 June 2004. A new three year agreement commencing 1 July 2004 is currently being finalised. 4. The increase in the Community Support Levy relates to a number of Community Support Levy initiatives being progressed by the Department of Health and Human Services that will produce a full year effect in 2004-05. 5. The increase in the Anzac Day Trust and Royal Society Papers relates to an increase in funding for the Anzac Day Trust as a result of indexation.
Table 18.11: Statement of Financial Performance for the Department of Treasury and Finance 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Revenue from Government Annual Appropriation 32 111) 32 804) 2.1) Other1 167) ....) (100.0) Sales of Goods and Services 8 124) 8 173) 0.6) Proceeds from the Disposal of Assets 2 000) 2 000) ....) TOTAL 42 402) 42 977) 1.4)
OPERATING EXPENSES Employee Entitlements 18 985) 19 431) 2.3) Superannuation 1 985) 2 009) 1.2) Depreciation and Amortisation 238) 243) 2.1) Grants and Transfer Payments2 10 118) 11 475) 13.4) Supplies and Consumables3 9 237) 10 257) 11.0) TOTAL 40 563) 43 415) 7.0)
NET OPERATING RESULT 1 839) (438) (123.8)
ADMINISTERED ITEMS
REVENUE Sales of Goods and Services4 339) 512) 51.0) TOTAL 339) 512) 51.0)
EXPENSES Transfer to the Consolidated Fund4 339) 512) 51.0) TOTAL 339) 512) 51.0)
Notes: 1. The decrease represents a reduction in the amount of funds carried forward under section 8A(2) of the Public Account Act 1986.
Chapter 18: Treasury and Finance 533 2. The increase in Grants and Transfer Payments relates to funding of the additional costs associated with The Public Trustee Community Service Obligation and the Community Support Levy. 3. The increase in Supplies and Consumables represents increased Consultants costs associated with the sale of Henty House, site investigations and separation of essential services at the Heritage Square site, implementation of the revised Australian Accounting Standards arising from the adoption of International Accounting Standards and harmonisation between the Australian Accounting Standards and Government Finance Statistics together with an increase in Maintenance and Property Services expenditure resulting from the requirement that the Department commence to pay Local Government rates on Government-owned buildings. 4. The increase represents additional Liquor Licence fees to better reflect the cost of providing services.
Table 18.12: Statement of Financial Position as at 30 June for the Department of Treasury and Finance 2004) 2005 Budget) Budget) Variation) $'000) $'000) % CURRENT ASSETS Cash1 6 996) 10 315) 47.4) Receivables 70) 70) ....) Prepayments 165) 170) 3.0) Accrued Revenue 950) 950) ....) TOTAL 8 181) 11 505) 40.6)
NON-CURRENT ASSETS Land and Buildings 3 841) 3 677) (4.3) Plant and Equipment2 139) 60) (56.9) TOTAL 3 980) 3 737) (6.2)
TOTAL ASSETS 12 161) 15 242) 25.3)
CURRENT LIABILITIES Payables 300) 300) ....) Employee Entitlements 1 560) 1 661) 6.4) TOTAL 1 860) 1 961) 5.4)
NON-CURRENT LIABILITIES Employee Entitlements 2 595) 2 673) 3.0) TOTAL 2 595) 2 673) 3.0)
TOTAL LIABILITIES 4 455) 4 634) 4.0)
NET ASSETS 7 706) 10 608) 37.6)
Notes: 1. The increase in Cash has resulted from the 2004 budgeted figure being understated. Budgeted cash for 2004 is expected to be $10.336 million. 2. The reduction in Plant and Equipment is a combination of the annual depreciation charge together with the movement by the Department to lease rather than purchase replacement equipment for its Information Technology infrastructure.
534 Chapter 18: Treasury and Finance Table 18.12: Statement of Financial Position as at 30 June for the Department of Treasury and Finance (continued) 2004) 2005 Budget) Budget) Variation) $'000) $'000) % ADMINISTERED ITEMS
CURRENT ASSETS Tax Assets 40) 40) ....) TOTAL 40) 40) ....)
NON-CURRENT ASSETS TOTAL ....) ....) ....)
TOTAL ASSETS 40) 40) ....)
CURRENT LIABILITIES TOTAL ....) ....) ....)
NON-CURRENT LIABILITIES TOTAL ....) ....) ....)
TOTAL LIABILITIES ....) ....) ....)
NET ASSETS 40) 40) ....)
Chapter 18: Treasury and Finance 535 Table 18.13: Statement of Cash Flows for the Department of Treasury and Finance 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) CASH FLOWS FROM OPERATING ACTIVITIES Receipts Revenue from Government Appropriation 32 111) 32 804) 2.1) Sales of Goods and Services 8 124) 8 173) 0.6) Payments Employee Entitlements (19 857) (19 252) (3.1) Superannuation (1 985) (2 009) 1.2) Grants and Transfer Payments1 (10 118) (11 475) 13.4) Supplies and Consumables2 (9 312) (10 262) 10.2) NET CASH FROM/(USED IN) OPERATING ACTIVITIES (1 037) (2 021) 94.9)
CASH FLOWS FROM INVESTING ACTIVITIES Sale of Fixed Assets 2 000) 2 000) ....) NET CASH FROM/(USED IN) INVESTING ACTIVITIES 2 000) 2 000) ....)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held 963) (21) (102.2)
Cash at the Beginning of Reporting Period 6 033) 10 336) 71.3)
Cash at the End of Reporting Period 6 996) 10 315) 47.4)
Notes: 1. The increase in Grants and Transfer Payments relates to the additional costs associated with The Public Trustee Community Service Obligation and the Community Support Levy. 2. The increase in Supplies and Consumables represents increased Consultants costs associated with the sale of Henty House, site investigations and separation of essential services at the Heritage Square site, implementation of the revised Australian Accounting Standards arising from the adoption of International Accounting Standards and harmonisation between the Australian Accounting Standards and Government Finance Statistics together with an increase in Maintenance and Property Services expenditure resulting from the requirement that the Department commence to pay Local Government rates on Government-owned buildings.
536 Chapter 18: Treasury and Finance Table 18.13: Statement of Cash Flows for the Department of Treasury and Finance (continued) 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) ADMINISTERED ITEMS
CASH FLOWS FROM OPERATING ACTIVITIES Receipts Sales of Goods and Services1 339) 512) 51.0) GST Receipts 1 600) 1 600) ....) Payments Transfers to the Consolidated Fund1 (339) (512) 51.0) GST Payments (1 600) (1 600) ....) NET CASH FROM/(USED IN) OPERATING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM INVESTING ACTIVITIES NET CASH FROM/(USED IN) INVESTING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held ....) ....) ....)
Cash at the Beginning of Reporting Period ....) ....) ....)
Cash at the End of Reporting Period ....) ....) ....)
Note: 1. The increase in Sales of Goods and Services and the associated Transfers to the Consolidated Fund represents additional Liquor Licence fees to better reflect the cost of providing services.
Chapter 18: Treasury and Finance 537 Table 18.14: Reconciliation of Operating Expenses to Consolidated Fund Appropriation 2003-04 2004-05 Budget Budget $'000) $'000)
Total Operating Expenses 40 563 43 415
Adjustments for Non-Cash Items Depreciation (238) (243) Employee Entitlements 872 (179) Supplies and Consumables 75 …. Total Cash Cost of Outputs 41 272 42 993
Other Funding Sources (7 161) (8 189) Proceeds from the Disposal of Fixed Assets (2 000) (2 000)
TOTAL CONSOLIDATED FUND APPROPRIATION 32 111 32 804
538 Chapter 18: Treasury and Finance 19 OTHER GENERAL GOVERNMENT SECTOR ENTITIES
INTRODUCTION
The General Government Sector comprises those agencies of government, the primary function of which is to provide public services which are mainly non-market in nature, for the collective consumption of the community, or which involve the transfer or redistribution of income and are funded mainly through taxes and other compulsory levies. This Sector includes government departments and a number of General Government entities that operate outside the Public Account:
• Inland Fisheries Service;
• Marine and Safety Tasmania;
• The Nominal Insurer;
• Royal Tasmanian Botanical Gardens;
• State Fire Commission; and
• TAFE Tasmania.
This chapter presents for each of the above entities:
• a description of the entity, its major operations and funding arrangements;
• a description of the major issues and initiatives of the entity for 2004-05; and
• Statements of Financial Performance, Financial Position and Cash Flows.
The State Budget has been prepared on an accrual Uniform Presentation Framework (UPF) basis for the General Government Sector. For further details on the UPF and General Government Sector, refer to The Tasmanian Government Financial System document that is released with the 2004-05 Budget Papers.
Chapter 19: Other General Government Sector Entities 539 FINANCIAL SUMMARY
Inland Fisheries Service Description
The Director of Inland Fisheries, as a corporation sole established under the Inland Fisheries Act 1995, has wide statutory powers to regulate, manage, protect and improve fisheries in inland waters and freshwater fish. The major activities of the Inland Fisheries Service (IFS) include: • managing and regulating the recreational, commercial and native fisheries on a sustainable basis through the medium of fisheries' management plans and appropriate licensing of participants;
• stocking of waters;
• conserving Tasmania's freshwater fauna and assisting conservation groups;
• undertaking research for industry development;
• providing biological consultancy services;
• publishing a range of newsletters, reports and research papers; and
• educating stakeholders.
The Service also operates the tourist site Salmon Ponds Heritage Hatchery and Gardens (c.1864) and manages several other properties. Ministerial Responsibility
The responsible Minister is the Minister for Primary Industries, Water and Environment, Hon Steven Kons MHA, and the supporting agency is the Department of Primary Industries, Water and Environment. Funding Arrangements
The Service has 35 permanent and a number of temporary project staff located at five sites around Tasmania. Staff are generally divided into three categories - administrative (25 per cent), compliance (27 per cent) and fisheries management (48 per cent). About half of its funding is self-derived from sales of recreational angling licences and various other commercial fisheries licences or permits. The remainder (including $395 000 specifically for the Carp Eradication Program) is funded by an administrative payment under the portfolio of Primary Industries, Water and Environment. Major Issues and Initiatives for the IFS in 2004-05 include:
• to continue to review and implement the IFS key goals and ensure their achievement through appropriate strategies;
• to maximise external funding opportunities, broaden the revenue base and achieve optimal resource utilisation;
• to continue to improve mechanisms for stakeholder communication;
• to continue recent improvements in corporate management and business processes; and
540 Chapter 19: Other General Government Sector Entities • to implement strategies to improve under performing fisheries and to implement fisheries management plans, appropriate policies and regulations.
Table 19.1: Statement of Financial Performance for the Inland Fisheries Service 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Fines and Regulatory Fees 1 225) 1 255) 2.4) Investment Income 20) 20) ....) Grants1 725) 1 117) 54.1) Sales of Goods and Services 578) 532) (8.0) Proceeds from the Disposal of Assets2 190) 590) 210.1) TOTAL 2 729) 3 514) 28.8)
OPERATING EXPENSES Employee Entitlements 1 473) 1 739) 18.1) Superannuation 135) 161) 19.2) Depreciation and Amortisation 143) 147) 2.8) Supplies and Consumables 1 090) 1 265) 16.0) TOTAL 2 832) 3 312) 16.9)
NET OPERATING RESULT (103)) 202) (296.1)
Notes: 1. The increase in Grants results from the provision of an additional $392 000 in base funding. 2. The increase in Proceeds from the Disposal of Assets reflects the estimated impact of rationalising IFS assets.
Chapter 19: Other General Government Sector Entities 541 Table 19.2: Statement of Financial Position as at 30 June for the Inland Fisheries Service 2004) 2005 Budget) Budget) Variation) $'000) $'000) %) CURRENT ASSETS Cash 572) 886) 54.8) Receivables1 102) 27) (73.6) TOTAL 674) 913) 35.5)
NON-CURRENT ASSETS Land and Buildings 2 333) 2 442) 4.6) Plant and Equipment 717) 800) 11.5) TOTAL 3 050) 3 242) 6.2)
TOTAL ASSETS 3 724) 4 155) 11.5)
CURRENT LIABILITIES Payables2 51) 162) 217.6) Employee Entitlements3 362) 709) 95.8) TOTAL 413) 871) 110.8)
NON-CURRENT LIABILITIES Employee Entitlements4 352) 113) (67.9) TOTAL 352) 113) (67.9)
TOTAL LIABILITIES 765) 984) 28.6)
NET ASSETS 2 959) 3 171) 7.1)
Notes: 1. The decrease in Receivables reflects anticipated faster collection of receipts. 2. The increase in Payables reflects an expected increase in business activity. 3. The increase in Current Employee Entitlements primarily reflects a transfer from Non-Current Employee Entitlements. 4. The decrease in Non-Current Employee Entitlements primarily reflects a transfer to Current Employee Entitlements.
542 Chapter 19: Other General Government Sector Entities Table 19.3: Statement of Cash Flows for the Inland Fisheries Service 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) CASH FLOWS FROM OPERATING ACTIVITIES Receipts Fines and Regulatory Fees 1 225) 1 255) 2.4) Interest Received 20) 20) ....) Grants1 725) 1 117) 54.0) Sales of Goods and Services 516) 529) 2.5) GST Receipts 26) 49) 88.4) Payments Employee Entitlements (1 419) (1 679) 18.3) Superannuation (135) (161) 19.2) Supplies and Consumables (664) (806) 21.3) GST Payments (26) (49) 88.4) NET CASH FROM/(USED IN) OPERATING ACTIVITIES 268) 275) 2.6)
CASH FLOWS FROM INVESTING ACTIVITIES Sale of Fixed Assets2 190) 395) 107.8) Purchase of Fixed Assets (458) (470) 2.6) NET CASH FROM/(USED IN) INVESTING ACTIVITIES (268) (75) (72.1)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held ....) 200) ....)
Cash at the Beginning of Reporting Period 572) 686) 19.9)
Cash at the End of Reporting Period 572) 886) 54.8)
Notes: 1. The increase in Grants reflects the provision of an additional $392 000 in base funding. 2. The increase in Proceeds from the Disposal of Assets reflects the estimated impact of rationalising IFS assets.
Chapter 19: Other General Government Sector Entities 543 Marine and Safety Tasmania Description
Marine and Safety Tasmania (MAST) was created by the Marine and Safety Authority Act 1997. The functions of the entity are to:
• ensure safe operations of vessels;
• provide and manage marine facilities; and
• manage environmental issues relating to vessels.
MAST commenced operations on 30 July 1997. The former Department of Transport and the former Port Authorities transferred a large number of marine facilities to MAST. The Port Authorities divested all boat ramps and jetties and all the navigation aids that were outside their immediate port areas or were not part of their core commercial activities. MAST also assumed the assets and liabilities of the former Navigation and Survey Authority of Tasmania. Vision
Making boating on our waterways safe and enjoyable. Ministerial Responsibility
MAST falls under the Minister for Infrastructure, Hon Bryan Green MHA, and the supporting agency is the Department of Infrastructure, Energy and Resources. Funding Arrangements
The entity is largely self-funding, other than an annual $700 000 administrative payment through the Department of Infrastructure, Energy and Resources. This funding is used for the maintenance and management of commercial facilities vested in MAST from the former Department of Transport.
Income is also derived from recreational boat registrations, and licence and mooring registration fees. Fees from recreational users are directed back into the community through the provision of new and the maintenance of existing recreational facilities vested in MAST, as well as funding to community owned facilities via the Recreational Boating Fund. MAST also provides a number of other services.
MAST also receives income from commercial vessel owners for the inspection of vessels and licensing of operators as well as ensuring that new vessels are built to the appropriate standards. These activities are largely fee for service. Major Issues and Initiatives for MAST in 2004-05 include:
In 2003 MAST, in conjunction with representatives of major stakeholders, established a set of strategic priorities to be implemented over the next five years. A number of priorities have been identified as the key initiatives required to enable changes in MAST's performance and hence to move the organisation closer to realising its vision and mission. These priorities have taken into consideration the key external influences on the organisation and MAST's current capability to respond to those influences. These factors are as follows:
• to work with the commercial industry to improve its safety culture and safety performance;
544 Chapter 19: Other General Government Sector Entities • to transfer the ownership and management of marine facilities that have limited boating use to other bodies where appropriate;
• to enable the equitable funding of commercial boating facilities so they meet the current and future requirements of users;
• to develop waterway guides for all high usage areas to not only raise recreational boater awareness of navigational hazards and direct people to safe anchorages and other facilities, but to also make boating safer and more enjoyable;
• to introduce zoning in specific high usage/confined waterways to increase the safety and enjoyment of users; and
• to introduce practical training and/or recognition of prior learning to complement the existing recreational boating licence requirements and support ongoing boater education.
During 2004-2005, MAST will continue with several initiatives that commenced in 2003, including:
• from 2003 to 2006, MAST intends to double the expenditure on recreational boating facilities. During this period, MAST will spend an additional $740 000 on upgrading recreational boating facilities from funds received from the renewal of motor boat licences. This is in addition to the $220 000 a year spent from the Recreational Boating Fund;
• an additional $125 000 will be spent over the next three years on improving boating safety awareness and education, including boating safety programs in schools, improved awareness of weather and overloading, public safety demonstrations and more communication with boat owners; and
• managing 57 major marine facilities including 20 Boat Ramps, 30 Jetties and Wharves and seven Training Walls and Breakwaters. Through a strategic asset management plan facilitated by a comprehensive computer data base, MAST will undertake a complete audit of these marine facilities by an external engineering consultant. This is in addition to the regular quarterly audits carried out internally by MAST staff. The external audit will allow MAST to update its strategic asset management database and program remedial maintenance for facilities.
Chapter 19: Other General Government Sector Entities 545 Table 19.4: Statement of Financial Performance for Marine and Safety Tasmania 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Investment Income1 28) 41) 46.4) Grants 700) 700) ....) Sales of Goods and Services2 2 475) 2 217) (10.5) TOTAL 3 203) 2 958) (7.7)
OPERATING EXPENSES Employee Entitlements 1 012) 1 041) 2.8) Superannuation 168) 176) 4.7) Depreciation and Amortisation3 674) 466) (30.9) Supplies and Consumables 1 744) 1 800) 3.2) TOTAL 3 598) 3 483) (3.2)
NET OPERATING RESULT (395) (525) 32.9)
Notes: 1. The increase in Investment Income reflects an expected increase in unspent but committed funds relating to Recreational Motor Boat Licence fees. 2. The decrease in Sales of Goods and Services reflects a cyclical reduction in the collection of Recreational Motor Boat Licence fees that are renewed on a three-year basis. 3. The decrease in Depreciation and Amortisation reflects the revaluation of MAST marine facilities and an expected decrease in expenditure on Purchases of Fixed Assets.
546 Chapter 19: Other General Government Sector Entities Table 19.5: Statement of Financial Position as at 30 June for Marine and Safety Tasmania 2004 2005 Budget) Budget) Variation) $'000) $'000) %) CURRENT ASSETS Cash 568) 787) 38.5) Receivables 53) 89) 67.9) Prepayments 43) 35) (18.7) Accrued Revenue1 15) 72) 380.0) Tax Assets 11) ....) (100.0) TOTAL 690) 983) 42.4)
NON-CURRENT ASSETS Plant and Equipment2 83) 240) 189.1) Infrastructure 7 589) 6 728) (11.4) TOTAL 7 672) 6 968) (9.2)
TOTAL ASSETS 8 362) 7 951) (4.9)
CURRENT LIABILITIES Payables 186) 187) 0.5) Employee Entitlements 189) 175) (7.5) Accrued Expenses 99) 83) (16.2) TOTAL 474) 445) (6.2)
NON-CURRENT LIABILITIES Employee Entitlements 6) 25) 316.6) TOTAL 6) 25) 316.6)
TOTAL LIABILITIES 480) 470) (2.1)
NET ASSETS 7 882) 7 481) (5.1)
Notes: 1. The increase in Accrued Revenue is due to an expected delay in the collection of revenue items. 2. The increase in Plant and Equipment is due to an expected increase in the purchase of technical equipment, including VHF Radio Equipment.
Chapter 19: Other General Government Sector Entities 547 Table 19.6: Statement of Cash Flows for Marine and Safety Tasmania 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) CASH FLOWS FROM OPERATING ACTIVITIES Receipts Interest Received 28) 41) 46.4) Grants 700) 700) ....) Sales of Goods and Services 2 477) 2 217) (10.5) GST Receipts 15) 14) (6.7) Payments Employee Entitlements (977) (1 041) 6.5) Superannuation (168) (176) 4.7) Supplies and Consumables (1 694) (1 800) 6.2) GST Payments (15) (14) (6.7) NET CASH FROM/(USED IN) OPERATING ACTIVITIES 366) (59) (116.2)
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of Fixed Assets1 (570) (163) (71.5) NET CASH FROM/(USED IN) INVESTING ACTIVITIES (570) (163) (71.5)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held (204) (222) 8.8)
Cash at the Beginning of Reporting Period 772) 1 009) 30.6)
Cash at the End of Reporting Period 568) 787) 38.5)
Note: 1. The decrease in Purchase of Fixed Assets reflects an expected increase in expenditure on community owned facilities rather than MAST owned facilities.
548 Chapter 19: Other General Government Sector Entities The Nominal Insurer Description
The Nominal Insurer was established under Part IX, Division 5 of the Workers Rehabilitation and Compensation Act 1988 to:
• manage workers' compensation claims where an employer has failed to maintain a policy of workers' compensation or where an insurer or self-insurer is unable to meet its liabilities under the Act; and
• manage the Nominal Insurer fund. Ministerial Responsibility
The responsible Minister is the Minister for Infrastructure, Energy and Resources, the Hon Bryan Green MHA, and the supporting agency is the Department of Infrastructure, Energy and Resources. Funding Arrangements
Prior to the collapse of the former HIH Insurance Group, the Nominal Insurer managed a small number of workers' compensation claims in situations where either the employer was uninsured and failed to meet the claim, or the insurer was insolvent. The cost of such claims was funded by a small levy on insurers.
Following the collapse of the former HIH Insurance Group, the Nominal Insurer assumed responsibility for over 700 workers' compensation claims with an initial estimated outstanding cost of $50 million. Those claims are being managed on behalf of the Nominal Insurer by Insurance Australia Group (IAG) and the cost is met by an annual levy of 4 per cent of the premium income of insurers and the notional premium of self-insurers. To meet the initial cost of settling a large number of relatively straightforward claims at a cost in excess of the levy income, the Nominal Insurer has borrowed funds from the Tasmanian Public Finance Corporation (Tascorp). These borrowings and the interest cost will be repaid from future levies.
In 2002-03, the Nominal Insurer decided to investigate the transfer of the outstanding tail of claims to IAG, together with a sum of money based on the actuarially determined outstanding cost estimate of the claims. These negotiations are continuing and the 2004-05 financial statements have been prepared on the assumption that a transfer will be agreed before 30 June 2004. On this assumption, the Nominal Insurer will continue to collect the levy from insurers and self-insurers, and will use the funds collected to meet the interest costs on the borrowings from Tascorp and, over time, retire these borrowings. However, the Nominal Insurer will no longer have responsibility, either administratively or financially, for the remaining outstanding claims (approximately 80) against the former HIH Insurance Group.
Chapter 19: Other General Government Sector Entities 549 Table 19.7: Statement of Financial Performance for the Nominal Insurer 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING EXPENSES Borrowing Costs 1 500) 1 500) ....) TOTAL 1 500) 1 500) ....)
NET OPERATING RESULT (1 500) (1 500) ....)
Table 19.8: Statement of Financial Position as at 30 June for the Nominal Insurer 2004 2005 Budget) Budget) Variation) $'000) $'000) %) CURRENT ASSETS Receivables1 32 000) 5 000) (84.4) TOTAL 32 000) 5 000) (84.4)
NON-CURRENT ASSETS Receivables2 ....) 27 825) ....) TOTAL ....) 27 825) ....)
TOTAL ASSETS 32 000) 32 825) 2.5)
CURRENT LIABILITIES Interest Bearing Liabilities3 33 500) 28 521) (14.9) TOTAL 33 500) 28 521) (14.9)
NON-CURRENT LIABILITIES TOTAL ....) ....) ....)
TOTAL LIABILITIES 33 500) 28 521) (14.9)
NET ASSETS4 (1 500) 4 304) (387.0)
Notes: 1. $5 million in Insurance Levy Receipts is expected in 2004-05. 2. The 2004-05 amount for Non-Current Receivables reflects a reclassification from Current Receivables and an increase in expected Insurance Levy Receipts. 3. The decrease in Interest Bearing Liabilities reflects capital repayments against the Tascorp loan. 4. The increase in the Net Assets reflects an increase in the recognition of Insurance Levy Receipts. Net Assets represents the expected cost of all future interest payments on the Tascorp loan.
550 Chapter 19: Other General Government Sector Entities Table 19.9: Statement of Cash Flows for the Nominal Insurer 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) CASH FLOWS FROM OPERATING ACTIVITIES Receipts Fines and Regulatory Fees 5 000) 5 000) ....) Payments Borrowing Costs (1 500) (1 500) ....) NET CASH FROM/(USED IN) OPERATING ACTIVITIES 3 500) 3 500) ....)
CASH FLOWS FROM INVESTING ACTIVITIES NET CASH FROM/(USED IN) INVESTING ACTIVITIES ....) ....) ....)
CASH FLOWS FROM FINANCING ACTIVITIES Net Borrowings (3 500) (3 500) ....) NET CASH FROM/(USED IN) FINANCING ACTIVITIES (3 500) (3 500) ....)
Net Increase/(Decrease) In Cash Held ....) ....) ....)
Cash at the Beginning of Reporting Period ....) ....) ....)
Cash at the End of Reporting Period ....) ....) ....)
Chapter 19: Other General Government Sector Entities 551 Royal Tasmanian Botanical Gardens Description
The Royal Tasmanian Botanical Gardens (RTBG) is a State authority, governed by the Royal Tasmanian Botanical Gardens Act 2002. The RTBG Board is appointed by the Minister for Tourism, Parks and Heritage and comprises seven members.
The Board is responsible for managing, conserving and enhancing the RTBG in accordance with the Act. Its Vision for the RTBG is to be internationally recognised as a centre of excellence in Southern Hemisphere cool climate plants, and to enrich Tasmania's social and cultural environment. The Mission is to manage, conserve and enhance the RTBG by delivering sustainable and relevant programs in plant collections and displays, tourism and recreation, cultural heritage, research and learning for Tasmania and the broader community. Ministerial Responsibility
The responsible Minister is the Minister for Tourism, Parks and Heritage, the Hon Ken Bacon MHA. and the supporting agency is the Department of Tourism, Parks, Heritage and the Arts. Major Issues and Initiatives for the RTBG in 2004-05 include:
The RTBG Board's Strategic Plan, which guides the RTBG in 'Managing Tasmania's Botanical Heritage' was developed with valuable contributions from more than 100 stakeholders in government, industry and community organisations across Tasmania, and from the Board, staff and the Friends of the RTBG. The Minister approved the Plan in April 2003.
Some key issues identified include the need for recognition of the RTBG as a statewide resource accessible and available to the whole of Tasmania, the broader cultural heritage precinct identity and management, access to and within the RTBG, the role of volunteers, expansion of the cultural programs and the link to the foreshore, road noise and access. The Plan aims to address these and other challenges and opportunities through the following initiatives:
• implement a component of the Bicentennial Program focusing on the RTBG's influence on the cultural landscape of Tasmania including a travelling exhibition and a special focus for the Tulip Festival;
• plan for a major new rose garden;
• provide technical support for the Emu Valley Rhododendron Garden, near Burnie, to strengthen co-operation with plant collections, education and interpretation programs in Tasmania's North West and continue to liaise closely with the Tasmanian Arboretum;
• continue aligning the school education program with the Department of Education's new curriculum and commence school education outreach programs in other regional centres around Tasmania;
• commence the community education outreach program, including the delivery of classes and courses in regional centres around Tasmania;
• partner with TAFE Tasmania on a leading edge hand held technology project for workplace student training;
552 Chapter 19: Other General Government Sector Entities • develop a RTBG Foreshore Management Plan including care of significant Aboriginal heritage in liaison with the Aboriginal Heritage Office;
• develop Volunteer Management Guidelines for RTBG volunteers in partnership with Volunteering Tasmania;
• assist the Friends of the RTBG with their planning and operational processes;
• implement the second stage of the Discovery Centre renovation including refurbishing the Dombrovksis Gallery and Children's Discovery Area;
• develop and install an interpretive Tasmanian Plant Explorers Walk throughout the Gardens;
• develop stage 2 of the Rare and Threatened Species Database and Propagation Project through BHP Billiton, TEMCO and Tasmanian Minerals Council grant funding;
• develop a Tasmanian Seed Conservation Centre and commence operation in partnership with the Department of Primary Industries, Water and the Environment and Tasmanian Museum and Art Gallery through grant funding from Royal Botanic Gardens Kew's Millennium Seed Bank, United Kingdom;
• collate a status report with Council Heads of Australian Botanic Gardens and contribute to an international Global Strategy for Plant Conservation under the United Nation's Convention of Biodiversity;
• enhance the visual aspect of the RTBG at the Main Entrance as well as the development of a Showy Tasmanian Flora Display, refurbishment of the Community Education Garden including sensory garden and redevelopment of the Conservatory Precinct Terraces for a Southern Hemisphere Alpine Display;
• complete implementation of the RTBG safety audit action plan including development of a comprehensive Occupational Health and Safety management plan and associated systems; and
• work with government and the community for a more integrated management approach to the broader cultural heritage precinct of Queen's Domain.
Chapter 19: Other General Government Sector Entities 553 Table 19.10: Statement of Financial Performance for the Royal Tasmanian Botanical Gardens 2003-04 2004-05 Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Investment Income 53) 56) 5.7 Grants 2 007) 2 065) 2.9 Sales of Goods and Services 436) 479) 9.9 Proceeds from the Disposal of Assets 20) 20) .... Other Revenue 105) 116) 10.5 TOTAL 2 621) 2 736) 4.4
OPERATING EXPENSES Employee Entitlements1 1 260) 1 368) 8.6 Superannuation 176) 181) 2.8 Depreciation and Amortisation 390) 395) 1.3 Supplies and Consumables 1 063) 1 011) (4.9) TOTAL 2 889) 2 955) 2.3
NET OPERATING RESULT (268) (219) (18.3)
Note: 1. The increase in Employee Entitlements reflects State Service Wage Agreement increases and the effect of organisational restructuring.
554 Chapter 19: Other General Government Sector Entities Table 19.11: Statement of Financial Position as at 30 June for the Royal Tasmanian Botanical Gardens 2004 2005 Budget) Budget) Variation) $'000) $'000) %) CURRENT ASSETS Cash 99) 216) 118.2 Receivables1 5) 208) .... Prepayments 70) 73) 4.3 Tax Assets 11) .... (100.0) Other 45) 59) 31.1 TOTAL 230) 556) 141.7
NON-CURRENT ASSETS Land and Buildings2 5 338) 7 977) 49.4 Plant and Equipment 91) 97) 6.6 Infrastructure2 5 132) 36) (99.3) Other2 60) .... (100.0) TOTAL 10 621) 8 110) (23.6)
TOTAL ASSETS 10 851) 8 666) (20.1)
CURRENT LIABILITIES Payables 145) 214) 47.6 Employee Entitlements 165) 157) (4.9) Other3 68) 10) (85.3) TOTAL 378) 381) 0.8
NON-CURRENT LIABILITIES Employee Entitlements 181) 174) (3.9) Other3 130) 56) (56.9) TOTAL 311) 230) (26.1)
TOTAL LIABILITIES 689) 611) (11.3)
NET ASSETS 10 162) 8 055) (20.7)
Notes: 1. The increase in Receivables reflects an expected increase in business activity. 2. Assets previously classified as Infrastructure and Other are now classified as Land and Buildings. The total reduction in the asset value estimate is based on revaluation of assets during 2002-03. 3. The decrease in Other Current Liabilities is due to decreased finance lease liabilities.
Chapter 19: Other General Government Sector Entities 555 Table 19.12: Statement of Cash Flows for the Royal Tasmanian Botanical Gardens 2003-04 2004-05 Budget) Budget) Variation) $'000) $'000) %) CASH FLOWS FROM OPERATING ACTIVITIES Receipts Interest Received 53) 56) 5.7 Grants 2 007) 2 065) 2.9 Sales of Goods and Services 436) 479) 9.9 GST Receipts ....) ....) .... Other Receipts 105) 116) 10.5 Payments Employee Entitlements1 (1 232) (1 353) 9.8 Superannuation (176) (181) 2.8 Supplies and Consumables (1 122) (1 057) (5.8) NET CASH FROM/(USED IN) OPERATING ACTIVITIES 71) 125) 76.1
CASH FLOWS FROM INVESTING ACTIVITIES Sale of Fixed Assets 20) 20) .... Purchase of Fixed Assets (207) (205) (1.0) NET CASH FROM/(USED IN) INVESTING ACTIVITIES (187) (185) (1.1)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....
Net Increase/(Decrease) In Cash Held (116) (60) (48.3)
Cash at the Beginning of Reporting Period 215) 276) 28.4
Cash at the End of Reporting Period 99) 216) 118.2
Note: 1. The increase in Employee Entitlements reflects State Service Wage Agreement increases and the effect of organisational restructuring.
556 Chapter 19: Other General Government Sector Entities State Fire Commission Description
The State Fire Commission's primary purpose is to minimise the social, economic and environmental impact of fire on the Tasmanian community. This is pursued through provision of a rapid and effective response to emergencies and through the delivery of a broad range of fire safety and prevention programs.
The Commission is also responsible for managing unplanned incidents involving hazardous materials. The Commission delivers all of its services through its operational arm, the Tasmania Fire Service (TFS).
The Commission has a number of long-term goals and objectives. The major emphasis is currently placed on:
• delivery of an efficient and effective response to fires, hazardous materials incidents and other emergencies;
• promotion, coordination and delivery of fire safety education to the community; and
• supporting our people in a fair, productive and safe working environment.
The State Fire Commission is a non-profit statutory authority and as such is not required to make provision for income tax equivalents, dividends or returns to the State Government. The pricing policies of the Commission are primarily determined by external market forces and the ability of users to pay for services. Ministerial Responsibility
The State Fire Commission reports directly to the Minister for Health and Human Services, Hon David Llewellyn MHA, and the supporting agency is the Department of Health and Human Services. Funding Arrangements
The major outside sources of revenue to the Commission are contributions from landowners, insurance companies, motor vehicle owners and the State Government. In addition, the Commission raises revenue through the sale and maintenance of fire equipment, the provision of training services to both the public and private sectors, alarm monitoring fees, plan approval fees, avoidable false alarm charges and fire reports.
Pensioners and health care cardholders receive discounts on rates and motor vehicle levies from the Commission. Major Issues and Initiatives for the State Fire Commission in 2004-05 include:
• increasing the fire appliance building program in 2004-05 with the objective of fabricating 50 light tankers. In addition, the Commission will refurbish the final fire aerial appliance located in the North West Region; and
• funding being provided for the ongoing development of the major training site at Cambridge in the South in 2004-05. In addition further development of the existing facilities at Youngtown in the North will continue allowing the facility to become the focal point for Tasmania Fire Service operations in the Northern Region.
Chapter 19: Other General Government Sector Entities 557 Table 19.13: Statement of Financial Performance for the State Fire Commission 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Taxation1 36 350) 39 240) 7.9) Fines and Regulatory Fees 100) 100) ....) Investment Income 50) 50) ....) Grants2 3 700) 3 050) (17.6) Sales of Goods and Services 3 000) 3 000) ....) Proceeds from the Disposal of Assets ....) 800) ....) Other Revenue 710) 825) 16.2) TOTAL 43910) 47 065) 7.2)
OPERATING EXPENSES Employee Entitlements3 22 200) 25 145) 13.3) Superannuation 2 700) 2 800) 3.7) Depreciation and Amortisation4 3 700) 4 000) 8.1) Borrowing Costs 400) 350) (12.5) Supplies and Consumables 12 300) 12 350) (0.4) Other Expenses ....) 800) ....) TOTAL 41 300) 45 445) 10.0)
NET OPERATING RESULT 2 610) 1 620) (37.9)
Notes: 1. The increase in Taxation primarily reflects an estimated increase in Insurance Fire Levy receipts. 2. The reduction in Grants is due to a lower level of contribution from the Consolidated Fund. 3. The increase in Employee Entitlements reflects the estimated costs associated with the firefighters' workplace agreement and a proposed recruitment course for firefighters. 4. The increase in Depreciation and Amortisation reflects a larger asset base.
558 Chapter 19: Other General Government Sector Entities Table 19.14: Statement of Financial Position as at 30 June for the State Fire Commission 2004) 2005) Budget) Budget) Variation) $'000) $'000) %) CURRENT ASSETS Cash 3 117) 4 345) 39.3) Receivables 1 302) 1 312) 0.7) Prepayments 466) 466) ....) Accrued Revenue 977) 977) ....) Other 657) 967) 47.1) TOTAL 6 519) 8 067) 23.7)
NON-CURRENT ASSETS Land and Buildings 31 811) 35 212) 10.6) Plant and Equipment1 4 222) 30 513) 622.7) Other2 24 700) ....) (100.0) TOTAL 60 733) 65 725) 8.2)
TOTAL ASSETS 67 252) 73 792) 9.7)
CURRENT LIABILITIES Payables 3 022) 4 557) 50.7) Interest Bearing Liabilities 1 368) 1 368) ....) Employee Entitlements 2 190) 2 665) 21.6) TOTAL 6 580) 8 590) 30.5)
NON-CURRENT LIABILITIES Interest Bearing Liabilities 4 341) 3 330) (23.3) Employee Entitlements 3 528) 4 126) 16.9) TOTAL 7 869) 7 456) (5.3)
TOTAL LIABILITIES 14 449) 16 046) 11.0)
NET ASSETS 52 803) 57 746) 9.3)
Notes: 1. The increase in Plant and Equipment primarily reflects an accounting adjustment from Other Non-Current Assets. 2. The decrease in Other Non-Current Assets reflects an accounting adjustment to Plant and Equipment.
Chapter 19: Other General Government Sector Entities 559 Table 19.15: Statement of Cash Flows for the State Fire Commission 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) CASH FLOWS FROM OPERATING ACTIVITIES Receipts Taxation1 36 350) 39 240) 7.9) Fines and Regulatory Fees 100) 100) ....) Interest Received 50) 50) ....) Grants2 3 700) 3 050) (17.6) Sales of Goods and Services 3 000) 3 000) ....) Other Receipts 710) 825) 16.1) Payments Employee Entitlements3 (22 200) (25 145) 13.2) Superannuation (2 700) (2 800) 3.7) Borrowing Costs (400) (350) (12.5) Supplies and Consumables (12 300) (12 350) 0.4) NET CASH FROM/(USED IN) OPERATING ACTIVITIES 6 310) 5 620) (11.0)
CASH FLOWS FROM INVESTING ACTIVITIES Sale of Fixed Assets 800) 800) ....) Purchase of Fixed Assets (7 400) (7 300) (1.4) NET CASH FROM/(USED IN) INVESTING ACTIVITIES (6 600) (6 500) (1.6)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held (290) (880) 203.4)
Cash at the Beginning of Reporting Period 3 407) 5 225) 53.3)
Cash at the End of Reporting Period 3 117) 4 345) 39.3)
Notes: 1. The increase in Taxation primarily reflects an estimated increase in Insurance Fire Levy receipts. 2. The reduction in Grants is due to a lower level of contribution from the Consolidated Fund. 3. The increase in Employee Entitlements reflects the estimated costs associated with the firefighters' workplace agreement and a proposed recruitment course for firefighters.
560 Chapter 19: Other General Government Sector Entities TAFE Tasmania Description
TAFE Tasmania's vision is to be 'An agile enterprise, highly valued by Tasmanian industry and Tasmanians for its skill in providing learning opportunities that satisfy customer needs. Its four objectives are to:
• adopt a strong learning focus;
• make every customer contract matter;
• offer a great learning experience; and
• build a resilient business.
TAFE Tasmania is the State's largest Registered Training Organisation (RTO) delivering Vocational Education and Training (VET) on a state-wide basis. TAFE Tasmania provides accredited training to almost 28 000 Tasmanians each year, at TAFE Tasmania campuses, in workplaces, at home or through Online Access Centres via computer-managed learning.
TAFE Tasmania's services are provided through an integrated network of 65 industry and community aligned teaching teams. TAFE Tasmania operates as two Institutes:
• the Institute of TAFE Tasmania, providing training in Business, Finance, General Education, Information Technology, Automotive, Construction, Electrical, Metals, Engineering, Textiles, Art Craft and Design, Community Services and Health, Hairdressing and Beauty Therapy and Natural Resources; and
• the Drysdale Institute with responsibility for Cookery, Hospitality and Tourism. Ministerial Responsibility
TAFE Tasmania forms part of the Education Portfolio and the Chair of the Board of TAFE Tasmania is responsible to the Minister for Education, Hon Paula Wriedt MHA, for TAFE Tasmania's performance. Funding Arrangements
Government funding is provided through a purchase agreement negotiated with the Department of Education. In 2004, the agreement provided for the purchase of 3.3 million nominal hours of training at a cost of $54.0 million. In addition, 617 000 nominal hours of training were purchased at a cost of $8.8 million for qualifications where the Institute is the sole nominated RTO for publicly funded training under User Choice arrangements. Major Issues and Initiatives for TAFE Tasmania in 2004-05
As the State's primary public training organisation, TAFE Tasmania aims to satisfy the expectations of Government, industry and the community. Its directions and activities are shaped in accordance with the vision, goals, strategies and benchmarks contained in five key policy documents: Tasmania Together; Learning Together; Tasmania - A State of Learning; the Industry Development Plan; and the Tasmanian Vocational Education and Training Strategy. In 2004-05, TAFE Tasmania will continue its commitment to delivering a rewarding and enjoyable learning experience of real value in the workplace and general life.
TAFE Tasmania will work closely with industry to further economic development and assist individual enterprises to develop to their full capacity. Recognising the particular needs of rural and remote areas,
Chapter 19: Other General Government Sector Entities 561 specific initiatives will be directed to enhancing training opportunities in rural and remote communities. TAFE Tasmania aims to ensure the centrality of the learning process in all of its operations, adopting initiatives that promote quality learning experiences for its students. Initiatives in 2004-05 include: • provision of funding under the Tasmania: A State of Learning Post-Compulsory Education and Training strategy of $900 000 in 2004-05, increasing to $1.6 million in 2006-07, to increase the overall participation by Tasmanians in training to provide skilled workers required by industry to meet increased demand, particularly in construction, hospitality, tourism industries, human services, rural industries, the cultural arts industry and community development including increasing participation of women, targeted programs for long-term unemployed men, literacy and general education;
• provision of $300 000 per year to extend the successful Start @ TAFE program to provide training opportunities for early school leavers and support their broader needs;
• continuing to work in collaboration with other government bodies to respond to the needs of emerging and expanding industries;
• expanding the number of formal partnership arrangements with industry and enterprises for the delivery of training;
• providing training to expand and enhance the skills of managers of Tasmanian enterprises, including through the Business Skills Initiative program;
• investing in innovative product and service development that enhances TAFE Tasmania's capacity to individualise training programs;
• continuing to upgrade and redevelop TAFE Tasmania facilities to reflect industry and student training needs;
• continuing the development of IT flexible learning centres in the State's major regions for the delivery of flexible training options;
• contributing to community development through a focus on increasing opportunities and outcomes for disadvantaged groups, including rural and remote communities;
• identifying and promoting best practice examples of assessment across state programs and nationally;
• entering into educational partnerships with schools, universities and other organisations to improve the depth and range of learning experiences available to individuals;
• encouraging and supporting TAFE Tasmania teachers to develop and maintain high skill levels across the increasing range of learning modes available to students; and
• in collaboration with the Department of Economic Development, expanding the number of international students studying at TAFE Tasmania.
562 Chapter 19: Other General Government Sector Entities Table 19.16: Statement of Financial Performance for TAFE Tasmania 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) OPERATING REVENUE Investment Income 355) 400) 12.6) Grants 73 306) 73 973) 0.9) Sales of Goods and Services1 14 847) 13 993) (5.8) Proceeds from the Disposal of Assets2 323) 203) (37.2) Other Revenue 903) 813) (10.0) TOTAL 89 734) 89 382) (0.4)
OPERATING EXPENSES Employee Entitlements 60 181) 61 545) 2.2) Depreciation and Amortisation 6 700) 6 960) 3.8) Supplies and Consumables 24 080) 22 445) (6.8) TOTAL 90 961) 90 950) (0.1)
NET OPERATING RESULT (1 227) (1 568) 27.8)
Notes: 1. The decrease in Sales of Goods and Services reflects the reduction in course fees collected by TAFE Tasmania subsequent to the transfer of Adult Education to the Department of Education. 2. The decrease in Proceeds from the Disposal of Assets reflects an expected decrease in asset sales.
Chapter 19: Other General Government Sector Entities 563 Table 19.17: Statement of Financial Position as at 30 June for TAFE Tasmania 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) CURRENT ASSETS Cash 3 516) 4 249) 20.8) Receivables1 1 615) 2 219) 37.3) Other2 394) 887) 125.1) TOTAL 5 525) 7 355) 33.1)
NON-CURRENT ASSETS Plant and Equipment3 143 813) 132 872) (7.7) TOTAL 143 813) 132 872) (7.7)
TOTAL ASSETS 149 338) 140 227) (6.2)
CURRENT LIABILITIES Payables 1 808) 1 635) (9.6) Employee Entitlements 3 853) 3 396) (11.9) Other 13) 178) ....) TOTAL 5 674) 5 209) (8.2)
NON-CURRENT LIABILITIES Employee Entitlements 7 493) 7 374) (1.6) Other 16) 16) ....) TOTAL 7 509) 7 390) (1.6)
TOTAL LIABILITIES 13 183) 12 599) (4.5)
NET ASSETS 136 155) 127 628) (6.3)
Notes: 1. The increase in Receivables reflects an expected increase in student fee instalment arrangements and competitive activity training. 2. The increase in Other Current Assets reflects an expected annual fluctuation in the level of prepayments. 3. The decrease in Plant and Equipment reflects the transfer of Adult Education assets to the Department of Education.
564 Chapter 19: Other General Government Sector Entities Table 19.18: Statement of Cash Flows for TAFE Tasmania 2003-04) 2004-05) Budget) Budget) Variation) $'000) $'000) %) CASH FLOWS FROM OPERATING ACTIVITIES Receipts Interest Received 355) 400) 12.6) Grants 73 306) 73 973) 0.9) Sales of Goods and Services 14 847) 13 790) (7.2) GST Receipts 7 500) 7 500) ....) Other Receipts 903) 1 016) 12.5) Payments Employee Entitlements (60 181) (60 266) 0.1) Supplies and Consumables (23 790) (23 724) (0.3) GST Payments (7 500) (7 500) ....) NET CASH FROM/(USED IN) OPERATING ACTIVITIES 5 440) 5 189) (4.7)
CASH FLOWS FROM INVESTING ACTIVITIES Sale of Fixed Assets1 323) 203) (37.2) Purchase of Fixed Assets2 (5 794) (5 111) (11.8) NET CASH FROM/(USED IN) INVESTING ACTIVITIES (5 471) (4 908) (10.3)
CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FROM/(USED IN) FINANCING ACTIVITIES ....) ....) ....)
Net Increase/(Decrease) In Cash Held (31) 281) ....)
Cash at the Beginning of Reporting Period 3 547) 3 968) 11.8)
Cash at the End of Reporting Period 3 516) 4 249) 20.8)
Notes: 1. The decrease in Sale of Fixed Assets reflects an expected decrease in asset sales. 2. The decrease in Purchase of Fixed Assets reflects a change in capital funding provided through the Capital Investment Program.
Chapter 19: Other General Government Sector Entities 565
CONVENTIONS AND GLOSSARY OF TERMS
CONVENTIONS
Figures in tables have been rounded. Discrepancies in tables between totals and sums of component items reflect rounding. Percentage changes in all tables are based on the underlying unrounded amounts.
The notation for zero or rounded to zero figures is '.…'.
Percentages in excess of 999 per cent are shown as '….'.
GLOSSARY OF TERMS Accrual Accounting
Accrual accounting recognises revenue and expenditure at the time it is earned or incurred, rather than when money is actually received or paid. Advances
Repayable, interest-bearing loans often provided on concessional terms. Appropriation
An amount which may be expended from the Consolidated Fund under the authority of an Act of Parliament. Auditor-General
A statutory office, established under the Financial Management and Audit Act 1990, responsible for the independent review of State financial matters. The Auditor-General is required to report annually to Parliament on the accounts of departments and other public bodies. Benchmarking
The process of comparing the performance of Government agencies in producing goods and services with other governments or the private sector. This process enables analysis of the effectiveness and efficiency of the production of Outputs relative to best practice procedures in other jurisdictions and the private sector and, in turn, assists the Government in making decisions on the level and range of Outputs purchased from departments.
Conventions and Glossary of Terms 567 Budget Balancing Assistance
Under the transitional arrangements of the Intergovernment Agreement, the shortfall between the revenue from the Goods and Services Tax (GST) distributed to a state or territory and that state or territory's Guaranteed Minimum Amount is referred to as Budget Balancing Assistance, with the amount being provided by the Commonwealth in the form of a grant. Budget Committee
A Cabinet Sub-Committee that is responsible for considering all Budget related matters and making appropriate recommendations to Cabinet. Capital Investment Program
The Capital Investment Program (CIP) comprises major capital investment projects for all on-Budget agencies and is funded through the Works and Services section of the Consolidated Fund. The CIP was introduced to link Government investment in capital and maintenance projects with departmental corporate and asset management plans and specific Government policy objectives and Outputs. Details of projects included in the CIP are provided in Chapter 6 of Budget Paper No 1 Budget Overview 2004-05. Cash Accounting
Cash accounting recognises revenue and expenditure only at the time cash is received or paid. Chain Volume Measures
Whereas constant price estimates measure real changes in various economic statistics by removing the effect of rising prices through an index composed in terms of a constant base year, chain volume measures provide estimates of real change by factoring in changing price relativities from year to year. Chain volume measures have recently replaced constant price estimates as the adjustment mechanism preferred by the Australian Bureau of Statistics for the calculation of real prices. Commonwealth Grants Commission
An independent body established by the Commonwealth Government to advise on the per capita relativities for distributing general revenue grants among the six states and two territories. Community Service Activities (CSAs)
CSAs are non-commercial activities undertaken by State-owned Companies under contract with the Government. To qualify as a CSA, the activity must meet similar identification criteria and net cost conditions as CSOs. Community Service Obligations (CSOs)
CSOs are activities undertaken by a GBE that would not be undertaken if it was a commercial entity operating in the private sector. In this regard, the GBE Act requires that CSOs can only be declared where the function performed, service provided, or concession allowed will result in a net cost to the GBE, is the direct result of a direction given under, or a specific requirement of, an Act of Parliament and would not be performed, provided or allowed if the GBE were a business in the private sector acting in accordance with sound commercial practice.
568 Conventions and Glossary of Terms Competitive Neutrality
A policy under the Competition Principles Agreement (see National Competition Policy) to prevent any resource allocation distortions arising out of the public ownership of entities engaged in significant business activities. Competitive neutrality aims to ensure that Government businesses do not enjoy any net competitive advantage simply as a result of their public sector ownership. Concessions
See State Government Concessions. Consolidated Fund
The Fund established by Part II of the Public Account Act 1986 to receive all taxes and the majority of other revenue received by the Government. All payments from the Consolidated Fund must be authorised by an Act of Parliament. Consolidated Fund Appropriation Act
An Act which appropriates moneys from the Consolidated Fund for expenditure by the Government during the financial year. Appropriation Acts are generally in force from 1 July in one calendar year until 30 June in the subsequent year. Consolidated Fund Surplus (CFS)
The CFS is the excess of Consolidated Fund receipts over the expenditure of these funds (net of loan repayments). A CFS represents funds which are available for the retirement of debt. A negative CFS is the same as the Net Financing Requirement (NFR). Constant Price Terms
Constant price estimates provide a convenient way of measuring real changes in economic time series. Specifically, such estimates measure the change in a series after adjusting values to remove the effects of price movements over time using an index compiled in terms of a constant base year. In Australian Bureau of Statistics series, most measures of real changes are now estimated using chain volume measures.
See also: Chain Volume Measures; Real Terms. Consumer Price Index
A measure of the change in prices, over time, of a basket of goods and services representing household expenditure patterns. It aims to measure the changes in the cost of living for the average household. Department Operating Accounts
Accounts created in the Special Deposits and Trust Fund to record all department-related transactions. These accounts receive funds appropriated to departments from the Consolidated Fund and retain certain revenue that is not identified for return to the Consolidated Fund. Department Operating Accounts enable the consideration of the total resourcing of Government Outputs.
Conventions and Glossary of Terms 569 Economic and Social Infrastructure Fund
The Economic and Social Infrastructure Fund was established in the 2003-04 Budget to provide funding for major economic projects and the implementation of social initiatives. Further information on the Economic and Social Infrastructure Fund is provided in Chapter 4 of Budget Paper No 2 Operations of Government Departments 2004-05. Equalisation Grants
See Fiscal Equalisation. Fees
Fees from regulatory services are levies not primarily designed to raise general revenue, but which are associated with the granting of permit or privilege or for the regulation of activity. This distinguishes them from charges for services rendered to clients and receipts from the sale of goods and services provided by public sector agencies. Financial Agreement Acts 1927 and 1994
Agreements between the Commonwealth Government and State Governments establishing the Loan Council and prescribing a framework for governmental borrowing and sinking fund arrangements. Financial Year
The financial year runs from 1 July in one calendar year to 30 June in the following year. Fines
Fines are civil and criminal penalties imposed on law breakers other than penalties imposed by tax authorities. First Home Owners Scheme
Under the Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations (IGA), the states and territories were required to establish, administer and fund a First Home Owners Scheme. The scheme provides first home owners with a grant of $7 000 to offset the impact of the GST on house prices. Fiscal Capacity
The capacity of a State to meet its financial responsibilities. It reflects the adequacy of the various tax bases available to that State, as well as the existence of any disabilities or advantages faced by that State in the provision of services and the raising of revenues. Fiscal Equalisation
Also described as horizontal fiscal equalisation, it refers to the principle of allocating financial assistance to the states and territories which, as assessed by the Commonwealth Grants Commission, is designed to provide a jurisdiction with the capacity to provide services at a standard comparable to those of the other jurisdictions on average provided it makes the average revenue raising effort.
570 Conventions and Glossary of Terms Fiscal Surplus
The Fiscal Surplus measures a government's investment-saving balance. A Fiscal Surplus indicates that a government is saving more than enough to finance all of its operations and capital spending. The Fiscal Surplus (which is recorded in the operating statement) differs from the net operating balance in relation to the treatment of capital expenditure. The Fiscal Surplus includes net capital expenditure, but not depreciation. Full Time Equivalents (FTEs)
A measure of staffing levels which converts the total number of hours worked by all staff (including part time and casual staff) to an equivalent number of full time staff. General Government Sector
For the purpose of reporting uniform information on Government Financial Statistics (GFS), public sector entities have been classified according to the General Government, Public Non-Financial Corporation (PNFC) or Public Financial Corporation (PFC) Sectors. General Government agencies are departments, bodies, or offices that provide services free of charge or at prices substantially below their cost of production. General Revenue Assistance
Grants provided by the Commonwealth to the state and territory Governments and Local Governments, to be used for purposes determined by the recipients. Prior to 2000-01, the main form of general revenue assistance provided to the states and territories was the Financial Assistance Grant. Other forms of general revenue assistance provided were National Competition Policy related payments and Identified Local Road Funds. Under the IGA, general revenue assistance grants are provided in the form of GST revenue payments. In addition, National Competition Policy related payments have continued under the new arrangements. There has been undertaking form the Commonwealth that National Competition Policy will continue beyond 2005-06. Goods and Services Tax (GST)
This is a tax imposed by the Commonwealth Government from 1 July 2000 on most goods and services provided in Australia. All of the revenue raised from this tax is distributed to the states and territories using the principle of horizontal fiscal equalisation. Government Business Enterprises
Government Business Enterprises (GBEs) are entities which operate outside the Public Account, principally on the basis of funds derived through their operations, and have no impact on Budget expenditure except in circumstances where they receive funding for CSOs or receive payments for services provided. GBEs also may provide returns to the Consolidated Fund in the form of dividends to shareholders (the State) and the payment of taxation equivalents and guarantee fees and are subject to their own enabling legislation and the GBE Act. GBEs prepare annual reports, with financial statements on a commercial, accrual accounting basis, which are tabled in Parliament and are subject to audit by the Auditor-General as the auditor appointed by the shareholders.
Conventions and Glossary of Terms 571 Government Financial Statistics (GFS)
The Government Financial Statistics system employed by the Australian Bureau of Statistics is designed to provide statistics relating to all public sector entities such as government departments, statutory authorities, government businesses and local government authorities. The GFS is based on two international standards, the United Nations' System of National Accounts (SNA93) and the International Monetary Fund's A Manual on Government Finance Statistics. It is the framework used to prepare budgets and outcomes, in accordance with UPF. Governor-in-Council
The Governor acting with the advice of the Executive Council, which consists of two or more Ministers of the Crown presided over by the Governor. Grants
Non-repayable, non-interest bearing assistance. Grants and Subsidies Expenditure
Grants and Subsidies Expenditure is a classification of expenditure that relates to payments or concessions made by the Government to individuals, groups or organisations. These include Community Service Obligations (CSOs) and Community Service Activities (CSAs) payments to Government Business Enterprises (GBEs) and State-owned Companies (SOC). These payments are determined by the Government and are non-discretionary. In relation to the Output Methodology, these payments are not strictly Outputs, but rather Government purchases the administration of these payments from departments. Details of Grants and Subsidies expenditure are included in relevant department chapters in Budget Paper No 2. Gross State Product
The total value added in production in the State economy in a year. Broadly, it equals the total value of goods and services produced less the cost of goods and services used in the production process. GST Administration Costs
Under the IGA, the states and territories are required to meet the costs of administering the GST. These costs are those incurred through the Australian Tax Office and Australian Customs Service in the collection of the GST. GST Law
Has the same meaning as defined in the A New Tax System (Goods and Services Tax) Act 1999 of the Commonwealth. Guarantee Fees
Guarantee fees are applied to GBEs and SOCs to compensate for the lower borrowing rates that GBEs and SOCs often receive due to their Government ownership. Guarantee fees apply to effectively increase the borrowing rate that GBEs and SOCs receive up to the market borrowing rate. In line with National Competition Policy principles, guarantee fees remove any competitive advantage that a GBE or SOC may receive in terms of reduced debt costs through Government ownership.
572 Conventions and Glossary of Terms Guaranteed Minimum Amount
Under the Intergovernmental Agreement, the Commonwealth has guaranteed that no state or territory will be worse off financially under the new Commonwealth-State financial arrangements than they would have been had the National Tax Reforms not taken place. The guaranteed minimum amount is the minimum level of funding required by each state or territory to ensure that the guarantee provisions of the IGA are met. Horizontal Fiscal Equalisation
See Fiscal Equalisation. Implicit Price Deflator – GSP
An Implicit Price Deflator (IPD) is another means, in addition to the Consumer Price Index, by which changing prices can be measured. The IPD for Gross State Product (GSP) is a broad measure of price change used in the State accounts. IPD indexes are obtained by dividing a current price value by its corresponding constant price value or chain volume measure. Infrastructure Fund
The Infrastructure Fund (comprising a Social Infrastructure Fund and an Economic Infrastructure Fund) was established in the 2001-02 Budget to provide funding for the development of major government social and economic infrastructure. Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations (IGA)
This is the agreement signed by the Commonwealth and all state and territory Governments in June 1999 which provides for major changes to Commonwealth-State financial relations. Under the IGA GST revenue is to be distributed to the states and territories on a horizontal fiscal equalisation basis. In return, the states and territories have agreed to forego revenue and accept additional expenditure responsibilities. Loan Council
A body comprising the Commonwealth, state and territory Treasurers which meets, usually on an annual basis, to determine the Loan Council Allocation for the Commonwealth, states and territories for the forthcoming financial year. Loan Council Allocation (LCA)
A state or territory's Loan Council Allocation is the borrowing level for the jurisdiction endorsed by the Loan Council, based on its combined General Government and PNFC sector deficit (adjusted for financing transactions), plus a number of memorandum items. These items reflect public sector transactions which may have many of the characteristics of borrowings but do not constitute formal borrowings. One example is operating leases. Thus the LCA provides an indicator of the likely impact of the Total State Public Sector's operations on the economy through its net call on national savings. Major Works
Capital investment projects, including construction and maintenance, which have an estimated total value greater than $100 000.
Conventions and Glossary of Terms 573 National Competition Policy (NCP)
NCP involves a series of policy initiatives, agreed by all Australian governments that are aimed at promoting free and open competition, where this is in the public benefit, which in turn will increase efficiency and productivity throughout the Australian economy. The basis of NCP is three intergovernmental agreements between the Commonwealth and state and territory Governments that were signed on 11 April 1995. These agreements are the Conduct Code Agreement (relating to the extension of Part IV of the Commonwealth's Trade Practices Act 1974 to all businesses), the Competition Principles Agreement (relating to the implementation of a series of policy elements designed to improve competition in the Australian economy) and the Agreement to Implement the National Competition Policy and Related Reforms (relating to the sharing of the financial benefits expected to flow from the implementation of NCP).
NCP is not about competition for competition's sake and, in most areas, requires the use of the public benefit test to ensure that all government and community objectives are considered before specific action is taken to facilitate competition in the economy. For example, considerations include, but are not limited to, economic and regional development (including employment and investment growth) and the interests of consumers generally or a class of consumers, and social welfare and equity considerations (including community service obligations). Net Debt
The State's Net Debt is defined as the difference between selected financial assets (claims the Government has on external organisations and individuals) and selected financial liabilities (claims of external organisations and individuals on the Government) held in the form of cash, deposits, non-transferable loans, transferable debt securities (eg Treasury notes and bonds) and finance leases. This definition does not include other financial assets and liabilities such as accounts receivable/payable, assets (such as shares) representing equity in other organisations (including public trading enterprises), liabilities for unfunded employee entitlements and assets and liabilities in the form of long-term trade credit. Net Interest Cost Ratio
The ratio of net interest costs met from the General Government sector (where net interest costs are defined as gross interest expenses less interest revenue and interest received from investments) to total revenue of the General Government sector net of total interest recoveries. Nominal Terms
Values expressed in nominal terms are actual values at a point in time and reflect changing price levels over time. The term is used to contrast with 'real terms'. Outcomes
There are three different levels of outcomes.
• Community Outcomes are the long-term, high level objectives sought by the Government for the benefit of the Tasmanian community. These Outcomes are at such a high level that all of the activities of the State Service, along with contributions from the non-government sector of the Tasmanian community, contribute to their achievement.
• Government Policy Priorities are those policy directions which indicate a change in direction, an area of reform or a change in priority.
574 Conventions and Glossary of Terms • Agency Outcomes are those Outcomes for which an agency can be held accountable, and the achievement of which contributes not only to the Government Policy Priorities but also to the Community Outcomes. Output
An identifiable good or service produced by, or on behalf of, a department and provided to customers outside the department. The Government purchases Outputs in order to achieve policy objectives or Outcomes. Output Expenditure
Expenditure over which a department has flexibility to reallocate funds to other Outputs within the limits of Budget allocation principles. Output Methodology
A system of operating, budgeting and reporting which focuses attention on the Government's desired policy Outcomes and the level of Outputs required to be provided by the Government in order to achieve those Outcomes. Premiers' Conference
A meeting of the Prime Minister, State Premiers and the Chief Ministers of the two Territories, which prior to the year 2000 was held annually, to deal with Commonwealth-State financial relations issues. Under the IGA, this meeting has been replaced by the Treasurers' Conference. Public Account
The account established by the Public Account Act 1986. It consists of two separate Funds: the Consolidated Fund and the Special Deposits and Trust Fund. Public Debt
The indebtedness to the Commonwealth for the State's share of loan raising under the Financial Agreement. Public Non-Financial Corporation Sector
The PNFC comprises those entities that aim to cover the majority of their expenses by revenue from the sale of goods and services and which are mainly market, non-regulatory and non-financial in nature. Generally, this sector covers the State's Government Business Enterprises (GBEs) and State-owned Companies (SOCs). Public Financial Corporations Sector
The Public Financial Corporations Sector comprises those entities that provide financial services, including central borrowing authorities (the Tasmanian Public Finance Corporation) and insurance companies (Motor Accidents Insurance Board).
Central borrowing authorities provide finance for other government entities and arrange investments of their surplus funds.
Conventions and Glossary of Terms 575 Real Terms
Statistics measured in real terms remove the effects of rising prices or inflation to facilitate a more accurate measure of change over time. Such values are now most commonly referred to in terms of constant price estimates or chain volume measures (where changing price relativities are factored in from year to year). Except where otherwise stated, figures in the Budget documents expressed in real terms are calculated using the Gross State Product Implicit Price Deflator (GSP IPD). Recurrent Services
That part of expenditure from the Consolidated Fund which relates to the 'ordinary annual' expenditures of the Government that are incurred in the production of Outputs. The major components of expenditure are salary and administrative and operating expenses, including building services and maintenance and furniture and equipment purchases. In addition, Recurrent Services include Grants and Subsidies expenditure and Reserved by Law payments. Reserved by Law Payments
Reserved by Law payments are recurrent expenditures that are made where there is a legislative requirement for funding to be provided for specific purposes without the necessity for a separate appropriation. Royalty
A payment made for the use of publicly owned resources such as timber, water, fish, minerals or intellectual property. Special Deposits and Trust Fund
A Fund established under the Public Account Act 1986 which comprises various individual accounts designated for specific purposes. Specific Purpose Payments (SPPs)
SPPs (also known as tied grants) are payments made by the Commonwealth to the states and territories, generally under section 96 of the Constitution, for the purposes, and on such terms and conditions, as may be specified by the Commonwealth. All SPPs of a recurrent nature are in the form of grants, while a small amount of assistance of a capital nature takes the form of advances. State Capital Program
The State Capital Program comprises the capital programs of State authorities, GBEs and SOCs and the capital expenditure programs of Government departments. Details of the State Capital Program are provided in Chapter 6 of Budget Paper No 1 Budget Overview 2004-05. It provides information on the whole State public sector's capital expenditure in Tasmania. State Debt
The total of debt incurred by the State under the Financial Agreement and borrowings through Tascorp.
576 Conventions and Glossary of Terms State Government Concessions
A State Government Concession is a reduction, discount, subsidy, rebate or waiver/exemption provided by a State Government agency on the value of goods or services (associated fees) to an individual, family or household based on one or more of the following eligibility criteria:
• low income;
• in recognition of age or service to the country or community; and
• special needs or disadvantages.
Eligibility is usually, but not always, linked to the production by the recipient of a specified concession card to indicate their inclusion in one of the above groups. State-owned Company
State-owned Companies (SOCs) operate outside the Public Account, principally on the basis of funds derived through their operations and are subject to Corporations Law. They have no impact on the Consolidated Fund except in circumstances where they receive payment for services provided by the SOC to the Government, or provide dividends, taxation equivalents or guarantee fees to the Government. State Public Sector Debt
The term used to describe the overall indebtedness of the Government and its State authorities, which includes repayable advances from the Commonwealth to the State for specific programs. Statutory Authority
Statutory authorities are each established under specific legislation which defines the purpose for which they are established and the general functions for which they are responsible. Statutory authorities can be classified into two distinct categories, namely:
• those authorities that are subject to specific requirements contained in their enabling legislation; and
• those authorities which are subject to provisions contained in their enabling legislation and are also subject to the provisions of the Government Business Enterprises Act 1995 (GBE Act). Authorities in this category are those which undertake commercial trading activities. These authorities are described as GBEs. Statutory Office
A position established under an Act of Parliament, for example the office of Auditor-General. Supply Act
The purpose of a Supply Act is to appropriate funds for payments necessary for the ongoing business of the Government during the period between the first day of each financial year and the passing of the Consolidated Fund Appropriation Bill. It lapses when the Consolidated Fund Appropriation Act is passed. In previous years, where the Budget was introduced into Parliament and finally passed by Parliament well into the Budget year, the Supply Act played a very important role in the provision of funds to agencies. Since the movement to a May Budget in 1999, a Supply Act has not been required.
Conventions and Glossary of Terms 577 Tascorp
The Tasmanian Public Finance Corporation (Tascorp) acts as the State's central borrowing authority for the Government and raises funds for State authorities, GBEs and SOCs. It also provides an investment facility for these entities. Taxation
A compulsory levy or impost which the Government imposes on transactions, inputs, documents, property and certain activities for the purpose of raising revenue. Unlike a charge, fee or royalty, a tax does not carry a specific entitlement to goods and services. Taxation Equivalents
Taxation equivalents are tax-like payments that are required to be paid to the Tasmanian Government by GBEs and SOCs, in line with National Competition Policy principles, to compensate for GBEs and SOCs being exempt from Commonwealth income tax. Taxation equivalents are applied to ensure that GBEs and SOCs are not placed at a competitive advantage due to their exemption from this tax. Territorial Revenue
Revenue arising from the sale, rent or other use of Crown land or property rights. Treasurers' Conference
Under the IGA, the Treasurers' Conference is established, comprising the Treasurer of the Commonwealth and the Treasurers of the states and territories. The detailed responsibilities of the this forum are provided in the IGA. Treasurer's Reserve
An appropriation to the Treasurer to provide funds to meet expenditure which could not have been reasonably foreseen at the time of preparation of the Budget. The Treasurer's Reserve is comprised of a statutory amount of $10 million, as provided for in the Public Account Act 1986, together with any additional amount appropriated. Uniform Presentation Framework (UPF)
The May 1991 meeting of the Premier's Conference agreed to the introduction of the Uniform Presentation Framework in 1991. The primary objective of the UPF is to ensure that Commonwealth, state and territory governments provide a common core of financial information in their Budget Papers to provide more meaningful comparisons of each government's financial results and projections.
The format of the UPF was last revised in March 2000 to adopt accrual Government Finance Statistics based reporting. Vertical Fiscal Imbalance
An imbalance between the expenditure responsibilities of each tier of government and the own-source revenue resources available to that tier. Australia is characterised by significant vertical fiscal imbalance, since the Commonwealth raises around 72 per cent of national tax revenues but has direct responsibility for only approximately 54 per cent of all public sector outlays.
578 Conventions and Glossary of Terms Works and Services
That part of Consolidated Fund expenditure relating to the construction, purchase and maintenance of major capital assets such as roads, public housing, schools, hospitals and equipment. Works and Services expenditure is reflected in the Roads, Housing and Department's Capital Investment Programs and the appropriation of funds to the Economic and Social Infrastructure Fund.
Conventions and Glossary of Terms 579