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Australian Trade Commission 2013–14AUSTRALIAN TRADE COMMISSION AUSTRADE AT A GLANCE Austrade’s role Austrade contributes to Australia’s economic prosperity by helping Australian businesses, education institutions, governments and citizens as they develop international markets, win foreign direct investment, promote international education, or seek consular and passport services in certain locations overseas. During 2013–14, Austrade gained responsibility for tourism policy, programmes and research and now also focuses on strengthening Australia’s tourism industry under the Tourism 2020 strategy. Austrade’s outcomes Additional responsibilities Outcome 1: Advance Australia’s trade, investment On 3 October 2013, responsibility for and education promotion interests through tourism policy, programmes and research information, advice and services to business, the was transferred to Austrade from the former education sector and governments. Department of Resources, Energy and Tourism. The tourism function comprises programme 3 Outcome 2: The protection and welfare of in the former department’s 2013–14 Portfolio Australians abroad through timely and responsive Budget Statements. consular and passport services in specific locations overseas. In this report, Austrade has reported on the performance of the tourism programme for the Performance reporting whole financial year. Results are summarised in Austrade’s success in achieving its outcomes Part 2 of this report, starting on page 105. is measured against the deliverables and key Staffing overview performance indicators set out in the 2013–14 Portfolio Budget Statements for the Foreign Affairs At 30 June 2014, Austrade had a total of and Trade portfolio. Results are summarised in 82 overseas offices in 48 markets, as well Part 2 of this report, starting on page 13. as 11 offices in Australia. Austrade employed 1,032 staff, 474 of whom were in Australia and 558 were based overseas. Financial summary, 2011–12 to 2013–14 2011–12 2012–13 2013–14 ($m) ($m) ($m) Departmental Appropriations 167.2 160.0 176.8 Non-appropriation revenue 20.1 17.6 24.2 Total revenue 187.3 177.5 201.0 Total expenses 201.9 192.2 214.8 Operating surplus/(deficit) (14.6) (14.7) (13.8) Departmental capital budget 15.3 18.5 11.0 Equity injection — — — Administered expenses Export Market Development Grants scheme 135.1 125.9 122.8 Asian Business Engagement Plan — — 1.8 Note: Some figures have been rounded. AUSTRALIAN TRADE COMMISSION ANNUAL REPORT 2013–14 CONTENTS Letter of transmittal ii PART 04 Highlights from 2013–14 iii FINANCIAL STATEMENTS 159 Financial performance 160 Outlook for 2014–15 iv Financial statements 162 PART 01 AGENCY OVERVIEW 1 Independent auditor’s report 164 About Austrade 2 Certification of financial statements 166 Chief Executive Officer’s report 5 Notes to and forming part of the financial statements 180 Austrade’s network 8 Reporting framework 10 PART 05 APPENDIXES 237 Organisational structure 12 A Staffing overview 238 PART 02 B Austrade and TradeStart locations in PERFORMANCE REPORTING 13 Australia and TradeStart partners 243 Outcome 1 14 C Austrade’s Service Charter 246 Programme 1.1: Trade, education and D Work health and safety 248 investment promotion 14 E Financial and staffing resources 250 Programme 1.2: Trade development F Ecologically sustainable development schemes—Export Market Development and environmental performance 253 Grants 85 G Advertising and market research 256 Programme 1.3: Trade development schemes—Asian Business Engagement Plan 97 H List of requirements 262 Outcome 2 101 List of figures and tables 267 Programme 2.1: Consular and passport services 101 Abbreviations and acronyms 270 Index 271 Tourism policy, programmes and research 105 Programme 3: Tourism-related initiatives Auditors and acknowledgements 280 and management 105 PART 03 MANAGEMENT AND ACCOUNTABILITY 131 Corporate governance 132 Risk management 139 Legislative framework and external scrutiny 141 Management of human resources 142 Financial management and business assurance 153 Managing knowledge and information 156 Contents i Chief Executive Officer 10 September 2014 The Hon Andrew Robb AO MP Minister for Trade and Investment Parliament House Canberra ACT 2600 Dear Minister I am pleased to present to you the Australian Trade Commission (Austrade) Annual Report for the financial year 2013–14. This report has been prepared in accordance with section 92 of the Australian Trade Commission Act 1985. Subsection 92(1) of the Act requires the Chief Executive Officer to, as soon as practicable after 30 June in each financial year, prepare and give to the Minister a report on the Commission’s operations during that financial year. I certify that during the 2013–14 reporting period, Austrade complied with the required standards set out under the Commonwealth Fraud Control Guidelines. The agency assessed and modified its fraud control plan; had in place fraud prevention, detection and reporting strategies; and was adequately prepared to investigate and recover the proceeds of any identified fraudulent activities. In presenting this annual report, I would like to acknowledge the contribution made by my colleagues in Austrade. Yours sincerely Bruce Gosper Chief Executive Officer Australian Trade Commission (Austrade) Level 23, Aon Tower, 201 Kent Street, Sydney NSW 2000 GPO Box 5301, Sydney NSW 2001 Australia Telephone: 61 2 9392 2102 | Facsimile: 61 2 9392 2777 | www.austrade.gov.au ABN 11 764 698 227 ii Australian Trade Commission Annual Report 2013–14 HIGHLIGHTS FROM 2013–14 Supported Australia Week in China and other Provided practical advice to businesses overseas business missions In 2013–14, Austrade provided 15,026 services The Australia Week in China business mission, to 6,608 Australian businesses, which was a held in April 2014, was attended by the Prime 28 per cent increase in services on the previous Minister and the Minister for Trade and Investment, year. Austrade’s annual service improvement study along with more than 700 Australian business found that 89 per cent of Austrade’s clients were representatives. Other missions supported satisfied with their dealings with Austrade during by Austrade included visits to Indonesia, the the last 12 months, while 73 per cent said they Philippines, Japan, Korea, the United States and achieved a commercial outcome as a result of Canada. See pages 38 and 81. working with Austrade. See pages 26 and 27. Attracted productive foreign direct investment Provided consular and passport services to Australia In 2013–14, Austrade processed 11,571 passport An important new opportunity for attracting applications and performed 14,342 notarial acts. investment into Australia was the appointment of a At 30 June 2014, Austrade operated consulates in Minister not just for trade, but also for investment. 16 overseas locations. See page 101. During 2013–14, Austrade organised investment roundtables in markets around the world, Administered trade development schemes enabling the Minister for Trade and Investment The Export Market Development Grants scheme to systematically, for the first time, meet directly paid a total of $113.6 million to 2,445 recipients with potential investors and promote Australia in 2013–14. The scheme provides an incentive as an investment destination. Austrade also for businesses to enter into export and grow to significantly contributed to 72 inward investments become sustainable exporters. See page 85. during the year. See page 59. Ninety-five grant applications were made under the Asian Business Engagement Plan with Positioned Australia as a provider of quality education and training 27 small to medium-sized Australian businesses receiving grants to develop new initiatives and Austrade created the ‘Win your Future Unlimited’ strengthen commercial opportunities in Asia. competition—a global digital campaign— See page 97. which raised the profile of Australia as a study destination for international students. There Collaborated on new research into Australia’s were 37,000 entries received from 172 countries. international business engagement See page 57. In March 2014, Austrade, with the Export Council of Australia, the Export Finance and Insurance Given responsibility for strengthening Corporation and the University of Sydney, Australia’s tourism industry produced the Australia’s International Business In October 2013, Austrade took on responsibility Survey: 2014 report. The survey provided insight for implementing the national long-term tourism into the overseas markets Australian businesses strategy, Tourism 2020, and for providing policy would target in the next two years, and the advice to the Government to help increase challenges they face. See page 20. Australia’s tourism market share. See page 105. Highlights from 2013–14 iii OUTLOOK FOR 2014–15 Continue to contribute to economic diplomacy Develop a five-year action plan to strengthen Austrade will contribute to economic diplomacy Australia’s tourism industry by continuing to help Australian businesses to Austrade will work closely with other enter new markets and take advantage of new Commonwealth departments, state and territory opportunities arising from free trade agreements; governments and industry stakeholders to develop by facilitating foreign direct investment into a 2015–20 tourism action plan. It will support the Australia; and by promoting Australia as a goals of the Tourism 2020 strategy to increase destination of choice for international students. overnight expenditure to between $115 billion and $140 billion
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